PROJECT SYNOPSIS

ON

“Recruitment and Selection at AVIVA LIFE INSURANCE”

Submitted to

Prof. Vivek Katare

Rashtrasant Tukadoji Maharaj Nagpur University

Nagpur

In the partial fulfilment of the requirement of

MASTERS OF BUSINESS ADMINISTRATION

Submitted by

Romina E. Regani

Project Guide

Guide Name

SHANTINIKETAN BUSINESS SCHOOL

Near Uppalwadi Industrial Estate, Kamptee Road, Nagpur

2019 -20

1
 INDEX

SR. NO CONTENTS PAGE NO.

1 Introduction of Topic

2 Concept
A. Theory
B. Importance
C. Advantages And Disadvantages

3 Objectives and Hypothesis

4 Research Methodology

5 Chapter Scheme

6 Bibliography

2
 INTRODUCTION

Human Resource is a basic need of any work to be done. According to Arthur Lewis:

“There are great differences in development between countries which seem to have roughly
equal resources, so it is necessary to enquire into the difference in human behaviors”

The project report is all about recruitment and selection process that’s an important
part of any organization.

Recruitment highlights each applicant’s skills, talents and experience. Their selection
involves developing a list of qualified candidates, defining a selection strategy,
identifying qualified candidates, thoroughly evaluating qualified candidates and selecting the
most qualified candidate.

It is said if right person is appointed at right place the half work has been done. In this
project I have tried to cover all the important point that should be kept in mind while
recruitment and selection process and have conducted a research study through a
questionnaire that I got it filled with all the sales managers of the AVIVA life insurance
Kanpur and tried to find out which methods and various other information related to
recruitment and selection and tries to come to a conclusion at what time mostly the
manpower planning is done , what the various method used for recruiting the candidates and
on what basic the selections is done.

Aviva India has a well-articulated equal opportunity policy, which lays strong emphasis
on hiring of individuals irrespective of age, race, caste or gender. As a best practice in
recruitment.

3
 CONCEPT

Life insurance has long been a major tool in basic estate planning. Life insurance
can provide an income tax-free death benefit far in excess of the premiums paid.

Concepts - insurance is based on two fundamental principles:

 Risk Pooling - Risk is transferred from an individual to a group, each sharing the
losses and has the promise of a future benefit.
 Law of large numbers - The larger the number of individual risks that are combined in
a group, the more certainty there is as to the amount of loss incurred in any given time
frame.

Personal Uses:

 Life Insurance is based on actuarial or mathematical principles, guarantees a specified

sum of money upon the death of the person who is insured.
 The true significance of insurance is its promise to substitute future economic certainty
for uncertainty and to replace the unknown with a sense of security.

Strategy
If you own property in excess of your estate tax exemption amount, you may have a taxable
estate. If you own a life insurance policy or name either yourself or your estate as
beneficiary, you may have exposed the policy's death benefit to estate taxes. For this
reason, when estate tax is a concern, an insurance policy on your life is usually best owned
by someone else.

4
 POLICY TYPES
Term Life Insurance

Term insurance is usually the least expensive form of insurance coverage and is very
affordable to purchase when you're young. As you get older, your risk of dying increases,
so the cost of term insurance increases exponentially. As with most other insurance
coverage, you pay premiums annually, semiannually, or quarterly for the term. For this
premium, you receive a predetermined amount of life insurance protection. Term insurance
is very inexpensive and is generally used for a temporary insurance need. However, it only
provides for death protection and there is no cash value built up from paid premiums.
Statistics show that the majority of term policies lapse without collection of death benefits.

Provisions
Renewable- Most term policies are renewable up to age 70 without evidence of
insurability.
Convertible- These policies have a provision to convert to permanent insurance without
evidence of insurability for a specified time frame (may be less than the full term).
Waiver of Premium- If the insured becomes totally disabled; the premiums are waived
during the period of disability.

Types of term insurance

 Annual Renewable Term- Level face value with increasing premium payments.
 Level term- Level face value, but premiums remain fixed for period of term.
 Term to age 65 or 70- Exponentially increasing premiums.
 Decreasing term- Level premium payments, but decreasing face value.

5
 OBJECTIVE

1. To study the recruitment and selection procedure followed in AVIVA LIFE

INSURANCE

2: To study the various sources of recruitment followed in AVIVA.

3: To learn what is the process of recruitment and selection that should be followed.

4: To search or headhunt people whose skill fits into the Company’s values.

6
 RESEARCH METHODOLOGY

In everyday life human being has to face many problems viz. social,
economical, financial problems. These problems in life call for acceptable and effective
solutions and for this purpose, research is required and a methodology applied for the
solutions can be found out.

Research was carried out at AVIVA LIFE INSURANCE Pvt. Ltd. to find out the

“Recruitment and selection process”.

DATA COLLECTION:

PRIMARY DATA:
Primary data was collected through survey method by distributing questionnaires to
branch manager and other sales manager. The questionnaires were carefully designed by
taking into account the parameters of my study.

SECONDARY DATA :
Data was collected from books, magazines, web sites, going through the records of the
organization, etc. It is the data which has been collected by individual or someone else
for the purpose of other than those of our particular research study. Or in other words we
can say that secondary data is the data used previously for the analysis and the results are
undertaken for the next process.

7
 HISTORY
Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of
the leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world. With a history dating back to 1696, Aviva has a
40 million- customer base worldwide. It has more than £377 billion of assets under
management.

In India, Aviva has a long history dating back to 1834. At the time of nationalization it
was the largest foreign insurer in India in terms of the compensation paid by the
Government of India. Aviva was also the first foreign insurance company in India to set
up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group
of companies. A professionally managed company, Dabur is the country's leading
producer of traditional health care products.

In accordance with the government regulations Aviva holds a 26 per cent stake in the
joint venture and the Dabur group holds the balance 74 per cent share.

26%

DABUR

AVIVA

74%

8
With a strong sales force of over 28,000 Financial Planning Advisers (FPAs), Aviva has
initiated an innovative and differentiated sales approach to the business. Through the
“Financial Health Check” (FHC) Aviva’s sales force has been able to establish its
credibility in the market. The FHC is a free service administered by the FPAs for a need-
based analysis of the customer’s long-term savings and insurance needs. Depending on
the life stage and earnings of the customer, the FHC assesses and recommends the right
insurance product for them.

Aviva pioneered the concept of Banc assurance in India, and has leveraged its
global expertise in Banc assurance successfully in India. Currently, Aviva has Banc
assurance tie- ups with ABN Amro Bank, American Express Bank, IndusInd Bank,
Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-
operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra
Pradesh and Maharashtra and regional Banks.

When Aviva entered the market, most companies were offering traditional life
products. Aviva started by offering the more modern Unit Linked and Unitized With
Profit products to the customers, creating a unique differentiation. Aviva’s products have
been designed in a manner to provide customers flexibility, transparency and value for
money. It has been among the first companies to introduce the more modern Unit
Linked products in the market. Its products include: whole life (LifeLong),
endowment (LifeSaver, EasyLife Plus, LifeSaver Plus), child policy (Young Achiever,
SaveGuard Junior, Aviva Little Master) single premium (LifeBond and LifeBond Plus),
Pension (PensionPlus), Term (LifeShield), fixed term protection plan (Freedom LifePlan)
and a tax efficient investment plan with limited premium payment term (LifeBond5). Aviva
products are modern and contemporary unitized products that offer unique customer
benefits like flexibility to choose cover levels, indexation and partial withdrawals. Aviva’s
Fund management operation is one of its key differentiators. Operating from Mumbai,
Aviva has an experienced team of fund managers and the range of fund options includes
Unitized With-Profits Fund and four Unit Linked funds: - Protector Fund, secure Fund,
balanced Fund and Growth Fund.

9
 Aviva has 176 Branches in India (including rural branches) supporting its
distribution network. Through its Banc assurance partner locations, Aviva products are
available in close to 500 towns and cities across India

Aviva is also keen to reach out to the underprivileged that have not had access
to insurance so far. Through its association with Basix (a micro financial institution) and
other NGOs, it has been able to reach the weaker sections of the society and provide life
insurance to them.

Aviva has been felicitated with the "Bronze Award for Excellence in People
Management" by Grow Talent Company Limited and Businessworld. This honour is
given to Aviva based on the ranks received in top 25 lists of the Great Place to Work India
studies conducted in the last four years. Aviva was ranked 12th in 2003, 14th in 2004 and
13th in the year 2005.

10
 JOIN VENTURE

Dabur

Founded in 1884, Dabur is one of India's oldest and largest group of companies with
consolidated annual turnover in excess of Rs 1,899 corers. A professionally managed
company, it is the country's leading producer of traditional healthcare products.

Aviva

Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Aviva has a 40 million
customer base worldwide. It has more than £377 billion of assets under management.

11
 Competitors of AVIVA LIFE INSURANCE

 LIC
 ICICI PRUDENTIAL.
 BIRLA SUN LIFE
 BAJAJ.ALLIANZE
 S.B.I LIFE INSURANCE
 HDFC STANDARD LIFE
 TATA AIG
 MAX NEWYORK
 MET LIFE

Comparison between the share of LIC and other Private

Players in Indian Market

22%

LIC

Private Players

78%

12
 Management team

 Bert Paterson  Sumit Behl

Managing Associate Director,
Director
Business Risk & Internal Audit
Ph: + 91 124 2709000-01
Ph: + 91 124 2709000-01
Fax: + 91 24 2571201-02
Fox: + 91 124 2571203

 Kewal Krishan Wadhwa

Director, Acturial  Jyoti Vaswani
Associate Director, Fund
Ph: + 91 124 2709000-01 Management

Fax: + 91 124 2571203 Ph: + 91 022 66627801

Fax: +91 022 66627829

 Vivek Khanna
Director, Marketing
 Chandan Khasnobis
Ph: + 91 124 2709000-01 Appointed Actuary

Fax: + 91 124 2571213-14 Ph: + 91 124 2709000-01

Fax: + 91 124 2571213-14

 Anil Sahgal
Director, Strategy and Chief  Shoumitro Roye
Investment Officer Director, Sales

Ph: + 91 124 2709000-01 Ph: + 91 124 2709000-01

Fax: + 91 124 2571203 Fax: + 91 124 2571213-14

 Rajeev Arora  Abhay Johorey

Director, Finance and Acturial Director, Transformation and
Services
Ph: + 91 124 2709000-01
Ph: +91 124 2709000-01
Fax: + 91 124 2571203
Fax: +91 124 2571205-06

13
 Chirag Jain
Director, Operations

Ph: + 91 124 2709000-01

Fax: + 91 124 2571209-10

 Mohammad Sahber
Associate Director, Human Resources

Ph: + 91 124 2709000-01

Fax: + 91 124 2571215

 Ajay Patil
Associate Director, Information

Technology

Ph: + 91 124 2709000-01

Fax: + 91 124 2571209-10

14
AVIVA’s Vision

Aviva - where exceeding expectations through innovative solutions is

"our" way of life

This is the compelling vision that Aviva India has created through the active contribution
of its employees. These lines not only define the way they live and work but also serve as a
reminder to deliver the best to their customers, shareholders, colleagues, partners &
employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for
winning, Innovation and Empowered team that they have collectively defined and
committed to working towards.

15
 PARTNERS

Aviva has committed to help its customers get 'Kal par Control' and make the most out
of their lives. It is their constant endeavor to ensure that their customers have easy access
to AVIVA products and services at all times.

.Aviva has pioneered bancassurance in the country through its tie-ups with 22 leading
private and nationalized Banks in the country. Aviva also focuses on bancassurance
worldwide and has a proven track record of successful bancassurance relationships. It has

40 major partnerships with leading banks across the globe. Aviva is a leading bancassurer
in countries such as France, Italy, Spain, Australia and New Zealand.

 ABN AMRO Bank

 American Express Bank

 The Lakshmi Vilas Bank Ltd

 Canara Bank

 Punjab & Sind Bank

 Centurion Bank of Punjab

 IndusInd Bank

16
Locations

EAST – 27

WEST- 29

NORTH – 26

SOUTH – 21

17
AVIVA GUIDING PRINCIPLES

o Recruit the best

o Accept personal responsibility
o Build an empowered team
o Building a shared vision and purpose
o Leadership Development
o Reward and Recognition

Recruit the best

Aviva India has a well-articulated equal opportunity policy, which lays strong
emphasis on hiring of individuals irrespective of age, race, caste or gender. As a best
practice in recruitment, they deploy identified psychometric tools such as SHL and
Belbin and designate ability tests to eliminate any biases in the resourcing process and
facilitate hiring of diverse profiles (vis-à-vis gender, background, experience levels and
competencies). The focus is on competence-based credentials rather than past experience or
length of service.

“AVIVA does not follow a very descriptive hierarchy – you have transparency at each
level, unlike most other organizations, where managersand senior management don’t look after
their subordinates. Here you feel comfortable talking with your seniors”

At Aviva they have an Employee Referral Programme, which seeks to

encourage employees to be brand ambassadors of the Company and actively
contribute to the resourcing process by recommending candidates with relevant
competencies and potential, thereby facilitating in strengthening domain expertise within
the Organization.

They have a robust Campus Programme, which is aimed at hiring students fresh from
key B-Schools and providing them with structured inputs and an environment for their
personal and professional growth. The Summer Trainee Program is designed to expose
people to the vibrancy of a complex and competitive business environment, challenge
you intellectually and encourage people to find innovative solutions.

18
 They aim at providing a business perspective and Summer Trainees work on live
projects, which form the core of our business strategy. Not only do they get the freedom
to experiment and make decisions, but also spend quality time with their Project Guide or
mentor, who provides them the perspective of the 'bigger picture'. The programme thus
gives them a unique opportunity to integrate their classroom learning with the realities of
real business, in a live yet safe environment.

Accept Personal Responsibility

“Apart from professional development, AVIVA also looks after the personal development of employees”

They believe that dealing with diversity is an ongoing phenomenon that facilitates the
process for a Company to adapt to and capitalize on today's increasingly complex
marketplace. Specific action plans have been formulated to ensure the mandated gender
ratio is achieved at the recruitment stage for a new position or through job enhancement
job rotation opportunities for existing roles.

“The organization has tremendous respect for the individual - which it

demonstrates by doing what it says”

Build an Empowered Team

To institutionalize an open and honest environment with shared goals and participative
decision-making, they have various open forums, one such initiative being the Town
Hall(s). These are conducted on a monthly basis by the Managing Director and designate
leadership team members.

To share information on celebrations, events and people across locations, a quarterly

newsletter „Buzz‟ is circulated to all members of the Aviva team. It features a message
from the Managing Director, celebrates achievements and Milestones of individuals and
teams and updates employees on new and ongoing initiatives and highlighting news of
past and futures events

“Employees are not working with AVIVA, they are living in AVIVA ”
19
 In line with their vision statement and one of Aviva’s key values -
Innovation, the Company introduced the popular Ideas for Aviva scheme.
This is an enriching programme in which every member of Aviva has an
open invitation to influence any aspect of business by giving suggestions
and ideas on how to work smarter and better.

Build Shared Vision and Purpose

“You feel as if you are part of the system when you are included in all the
decisions being made for your function.”

As a Company, they encourage self-starters. Given their dynamic environment, one is

expected to deliver from day one. Somewhere between adjusting to the new environment
and proving their worth they forget to ASK. Ask basic questions about the facilities,
infrastructure, processes, key people and dynamics of the Organization etc. Information,
which if provided on time can be very useful. This is how the Buddy Programme was
envisaged. Launched in July 2003, it addresses the need of a new employee in terms of
extending a friendly hand apart from the support provided by the Line and HR managers.
The objective is simple: To facilitate a semless transition of the new hire into the Aviva
family.

20
 Career Management

Campus Programme
They have a robust Campus Programme, which is aimed at hiring students fresh from key
B-Schools and providing them with structured inputs and an environment for their
personal and professional growth. The Summer Trainee Programme is designed to expose
them to the vibrancy of a complex and competitive business environment,
challenge intellectually and encourage them to find innovative solutions.

Leadership Development
To strengthen entrepreneurial capabilities required to operate in a fiercely competitive
and dynamic insurance market environment and plan effective succession planning by
building futuristic leadership competencies, various initiatives are taken by the Aviva
Group

Reward and recognize performance

To build a meritocratic environment, they have implemented a robust value based
performance management process wherein they recognize significant contributions made
by their employees in an objective and transparent manner and on demonstrated
competence levels. Further, they also recognize people who 'walk that extra mile' in
living the Aviva values.

21
 Products & Services

They have a full range of transparent, flexible and value for money products that include
whole life (LifeLong), endowment (LifeSaver, EasyLife Plus, LifeSaver Plus), child
policy (Young Achiever, SaveGuard Junior, Aviva Little Master) single premium
(LifeBond, LifeBond Plus), Pension (PensionPlus), Term (LifeShield), fixed term
protection plan (Freedom LifePlan) and a 5 year recurring premium investment cum
protection plan (LifeBond5). Aviva products are modern and contemporary unitized
products that offer unique customer benefits like flexibility to choose cover levels,
indexation and partial withdrawals.

They also offer customer a choice of investment options. They can choose between their
unit linked fund or our with profit fund.

With Profits Fund guarantees that the selling price of the units will never fall. The unit
value of this fund is increased by crediting bonuses on a daily compounding basis. The
fund provides investment security to the capital.

The Unit Linked Fund is designed to provide relatively more progressive capital growth
wherein customer automatically receive the benefit related to the investment performance
of the fund.

Under Unit Linked Fund, on some of our products they offer a choice of fund options:

o Protector Fund
o Secure Fund
o Growth Fund
o Balanced Fund

22
 LITERATURE SURVEY

Meaning of HUMAN RESOURCE MANAGEMENT

Human Resource plays a crucial role in the development process of the modern

Economics ARTHUR LEWIS observed

“There are great differences in development between countries which seem to have roughly
equal resources, so it is necessary to enquire into the difference in human behaviors”

Human resource management is the management of employee’s skill, knowledge

abilities, talent, aptitude, creativity, ability etc. Different terms are used for denoting
Human Resource Management. They are labour management, labour administration,
labour management relationship, employee–employer relationship, industrial relationship,
human capital management, human assent management etc. Though these terms can be
used differently widely, the basic nature of distinction lies in the scope or coverage and
evolutionary stage. In simple sense, human resource management means employing
people, developing their resources, utilizing, maintaining and compensating their services
in tune with the job and organizational requirements.

23
 Functions of HUMAN RESOURCE MANAGEMENT

Administration:
Strategic planning, organizational evaluation, County Board relations, policy
recommendations, supervision of department staff

Benefits:
Health insurance, dental insurance, life insurance, disability insurance, retirement benefits,
vacation, sick leave, paid holidays, section 125 plan, donor program, educational incentive,
uniform allowance, and others.

Compensation:
Salary and benefit surveys, job evaluation, job descriptions evaluation, job descriptions

Employee relations:
Disciplinary processes, incident investigations, complaint/grievance procedures, labor-
management relations.

Employee services:
Enrolment in benefits, employee discounts for recreational spots, resolution of enrolment or
claim problems, employee newsletter. Educational assistance, employee service awards

24
Fiscal:
Staffing budgets, departmental budget, accounts payable, insurance receivables, insurance
fund management, total package costing. Insurance receivables, insurance fund
management, total package costing.

Health and safety:

Employee assistance, workers compensation claims, drug testing, safety compliance and
training.

Leaves of absence:
State and/or Federal Family and Medical Leave rights, County approved leaves of
absence, rights upon return to work, light duty assignments for temporary periods.

Payroll administration:
Computer-based or manual evaluation systems, supervisory training, compliance with
timeliness standards

Performance appraisal:
Employee files, litigation files, payroll records, safety records and other administrative
files

Record-keeping:
Job posting, advertising, testing administration, employment interviews, background

investigations, post-offer employment testing.

25
Recruitment:
Recruitment is defined as a process to discover the sources of manpower to meet the
requirement of the staffing schedule and to employ effective measures for meet the
requirement of the staffing schedule and to employ to employ effective measures for
attracting the manpower in adequate numbers to facilitate effective selection of an
effective workforce.

Selection:
After identifying the sources of human resources, searching for prospective employees and
stimulation helps too apply for jobs in an organization, the management has to perform the
function of selecting the right man at right job and at the right time.

Separations and terminations:

Rights upon termination of employment, severance benefits, unemployment
compensation, exit interviews.

Training and development:

County-wide needs assessment, development of supervisory and management skills,
employee training and workshops. Benefits orientation for new and transferring
employees, Supervisory newsletter.

Salary and benefits:

Salary/wage plans, employee benefits

26
 Importance of Human Resource Management

1: Attract highly qualified and competent people

2: Ensure that’s the selected candidate stays longer with the company.

3: Make sure that there is match between cost and benefit.

4: Helps the organization to create more culturally diverse workforce

Whereas, the poor quality of selection means extra cost on training and supervision.
Furthermore, when recruitment fails to meet organizational needs for talent, a typically
response is to raise entry level pay scales. This can distort traditional wages and salary
relationship in organization, resulting in unavoidable consequences. Thus the
effectiveness of the recruitment process can play a major role in determining the
resources that must be expended on other HR activates and their ultimate success.

27
 Scope of HRM at organizational level

Human Resource department at

AVIVA LIFE INSURANCE

Human resource
department

Recruitment and Resource allocation Training and

selection development

28
 Human resource development
This department looks after the needs and Requirement the present employees. This
Department includes number of function which are as Follows:

1. Training and Development –it includes technical, soft skills and process related to training

2. Process and policies –it contains all the rule and regulations that need to be followed by the
employees.

3: Appraisal and increment- it is in the formal feedback to the employees about their
performance and the conduct of work.

4: Induction-involves the information to the new employees about the company, job,
departments etc

5: Motivational activities and entertainment- involves motivating the employees to improve their
productivity.

6: Roles and responsibilities-that every individual employee needs to fulfil

7: Key Result Area (KRA) –it is the measurement quantifiable of output for the roles of
responsibilities.

8: Employee separation-includes resignation and dismissal.

9: Joining formalities- take place when a new employee joins the company.

10: Computerization

12: Helpdesk

13: Employee verification-take place at the time of joining of the new employee.

14: Surveys

15: Project trainees

16: Counselling and grievance handling-both are different as counselling is basically helping out in
personal problems whereas, grievances Handling involves the handling of complains that the
employees has towards the management.

All the above head are included in the human resource development and involves the overall
development of individual employees which in turn increases the overall profit of the company.

29
Recruitment Procedure overview

Manpower Requisition Form

Recruitment Plan

Budget

Sourcing

Selection Process

Joining

Post Recruitment Data Updating

30
 RECRUITMENT

Recruitment is “hiring” of employees from outside. Recruitment has been regarded as

the most important function of the HR department , because unless the right type of
people are hired, even the best plans, organization chart and control system would not do
much good.

Recruitment is the discovering of potential applicant for actual or anticipated

organizational vacancies. Accordingly the purpose of recruitment is to locate sources of
manpower to meet the job requirements and job specification.

It is defined as „ a process to discover the sources of manpower to meet the requirements

of staffing schedule and to apply effective measures for attracting the manpower to
adequate number to facilitate effective selection of an effective workforce‟

Yoder points out that recruitment is a process to discover the sources of manpower to
meet the requirement of the staffing schedule and to employee effective measures to
attracting that manpower in adequate number to facilitate effective selection of an
effective workforce.

Edwin B Flippo defines recruitment as „the process of searching for prospective

employees and stimulating them to apply for the jobs in the organization.‟

“It is the process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their application are
submitted. The result is a pool of applicants from which new employees are selected.”

31
 Methods of Recruitment
Dunn and Stephens summaries the possible recruiting methods into three categories,
namely

1: Direct method

2: Indirect method

3: Third party method

DIRECT METHOD
The direct method includes sending of the recruiters to different educational and
professional institutions, employees contact with public, and mannered exhibits. One of
the widely used methods is sending the recruiters to different colleges and technical
schools. This is mainly done with the cooperation of the placement office of the college.
Sometimes, firms directly solicit information form the concerned professors about
student with an outstanding records.

Other direct methods include sending recruiters to conventions and seminars, setting up
exhibits at fairs, and using mobile offices to go the desired centers.

INDIRECT METHOD
Indirect method involves mainly advertising in newspapers, on the radios, in trade and
professional journals, technical magazines and brochures.

Advertisements in newspapers and or trade journals and magazines are the most
frequently used methods. Senior post is largely filled with such methods. Advertising is a
very useful for recruiting blue color and hourly worker, as well as scientific, professional,
and technical employees.

Local newspaper can be good sources of blue collar workers, clerical employees, and
lower level administrative employees.

The main point is that the higher the position in the organization the more dispersed
advertisement is likely to be. The search for the top executive might include advertisement
in a national periodical, whereas the advertisement of the blue collar jobs usually confine
to the daily newspaper.
32
 According to the Advertisement tactic and strategy in personnel Recruitment,
three main points need to be borne in the mind before an advertisement in inserted.

First, to visualize the type of applicants one is trying to recruit.

Second, to write out a list of advantages the company offers, or why should the
reader join the company.

Third, to decide where to run the advertisement , not only in which area, but also
in which newspaper having a local, state or a nation- wide circulation.

THIRD PARTY
These include the use of commercial or private employment agencies, state agencies,
and placement offices of schools colleges and professional associations recruiting firms,
management consulting firms, indoctrination seminars for college professors, and friends
and relatives.

Private employment agencies are the most widely used sources. They charge a small
fee from the applicant. They specialize in specific occupation; general office help,
salesmen, technical workers, accountant, computer staff, engineers and executives. State
or public employment agencies are also known as the employment or labour exchanges,
are the main agencies for the public employment. Employers inform them of their
personnel requirement, while job seekers get information for them about the type of job
are referred by the employer.

Schools and colleges offer opportunities for recruiting their student. They operate
placement services where complete biodata and other particular of the student are
available.

Professional organization or recruiting firms maintain complete information records

about employed executive. These firms maintain complete information records about
employed executives. These firms are looked upon as the head hunters, raiders and
pirates by organization which looses their personnel through their efforts.

33
 Evaluation of the recruitment method

The following are the evaluation of the recruitment method

1: Number of initial enquires received which resulted in completed application forms

2: Number of candidates recruited.

3: Number of candidates retained in the organization after six months.

4: Number of candidates at various stages of the recruitment and selection process,

especially those short listed.

34
 Objective of recruitment

1: To attract with multi-dimensional skills and experience that suite the present and future
organization strategies.

2: To induct outsider with new perspective to lead the company.

3: To infuse fresh blood at all levels of organization.

4: To develop an organizational culture that attracts competent people to the company.

5: To search or headhunt people whose skill fit the company’s values.

6: To seek out non-conventional development grounds of talent

7: To devise methodology for assessing psychological traits.

8: To search for talent globally not just with in the company.

9: To design entry pay that competes on quality but not on quantum.

10: To anticipate and find people for position that doesn’t exists yet.

Recruitment represents the first contact that a company makes with potential employees. It
is through recruitment that many individuals come to know about the company and
eventually decide whether they wish to work for it.

The recruitment process should inform qualified individuals about the job so that applicant
can make comparison with their qualification and interest.

35
 Factors affecting Recruitment

There are two types of factors that affect the Recruitment of candidates for the company.

1: Internal factors: These includes

- Company’s pay package

- Quality of work life

- Organizational culture

- Company’s size

- Company’s product

- Growth rate of the company

- Role of trade unions

- Cost of recruitment

2: External factors: These include

- Supply and demand factors

- Employment rate

- Labour market condition

- Political, legal and government factors

- Information system

36
 Factors to be undertaken while formulating recruitment policies

The following factors should be undertaken while formulating the policies -

- Government polices

- Recruitment sources

- Recruitment needs

- Recruitment cost

- Organizational and personal policies

Theories Regarding Recruitment

Recruitment is two way street: it takes a recruiter has a choice whom to recruit, same
way the prospective employee also has taken the decision whether or not to apply for
the given job vacancy. The individual take the decision usually on three different basic:

1: The objective factors

2: The critical contact

3: The subjective factor

37
The objectives theory views that the process of organizational choice as being one of
weighing and evaluating set of measurable characteristic of employment offers, such
pay, benefits , location, opportunity for advancement, the nature of job to performed,
and education opportunities.

Whereas, the critical contact theory suggests that the typical candidates is unable to
make a meaningful differentiation of organization’s offers in terms of objective or
subjective factors, because of his limited or very short contact with the organization.
Choice can be made only when applicant can readily perceive the factors such as the
behaviour of the recruiters, the nature of the physical facilities, and such as the
efficiency in processing paper work association with the application.

On the other hand, the subjective theory emphasizes the congruence. Here the choices
are made on highly personal and emotional basis.

38
Recruitment Process

The actual steps involved in recruitment follow a well-defined path:

Application shortlist: In this step, we shortlist the resume received from various sources
based on the suitability for the requirement.

Preliminary Assessment: The short listed candidates go through a preliminary round of

interviews. This interview lays more emphasis on functional competencies. To have more
data on the functional skills, the candidates may be given a business case for analysis and
presentation (This is done for certain positions only).

Final interview: Here the candidates who successfully clear the first round of interview
go through another round of interview with one or more of the functional heads.

Medical Evaluation: Candidates who are selected by Colgate are asked to undergo a
medical test.

39
 Process

Plan For Hiring

Analysing vacancies and recruitments

Vacancy due to attrition

New Position

Due diligence & internal

evaluation Present as a business case for
Chairman Approval

Recruitment approval
process

Decision: Should the Job

position be retained? positions
Merged

Engineer/MBA‟s
NO simple Recruitment approval guidelines
graduates
Stable work
retention history Circle HR sends
Salary hike 15-20 % recruitment format
to entity
Age as per average
team age

40
 Entity HR discusses
with Business Head

Corporate HR
for approval

Approval for Hiring:

Preparation starts

Sourcing

Employee Referrals Timesjobs.com

indicating Employee ID, Short-listing
of profiles Naukri.com
Designation

Minor deviations to be
indicated in the Preliminary Major deviation to be
interview circle HR indicated separately as
interview assessment a non-hiring condition
sheet comment box in and at circle level
BOLD.

# Salary less than 50 % Final interview at

1. QUALIFICATIONS NOT AS
of minimum salary. DAKC
PER LAID NORMS.

Compensations & job 2. SALARY EXPECTED

offers recommended by HIGHER THAN MAX
Circle to DAKC BAND.

3. EXPERIENCE LESS THAN

LAID NORMS.
Pre joining reference &
medical checks

41
 Job offer, Appointment letter &
Confirmation letter

Evaluation of recruitment process

The following are the evaluation of the recruitment process:

1: Return rate of application sent out.

2: Number of suitable candidates for selection.

3: Retention and performance of the candidate selection.

4: Cost of recruitment

5: Time lapsed data.

6: Comments on image projected.

42
 PHILOSOPHIES OF RECRUITEMT

Basically there are two Philosophies of recruitment. These are as follows:

1: REALISTIC JOB PREVIEWS (RJP)

Realistic Job Previews provides complete job related information to the applicants so that
they can make the right decision before taking up the jobs. It includes positive and the
negative aspects of the job.

2: JOB COMPATIBILITY QUESTIONNAIRE: (JCQ)

Job compatibility Questionnaire was developed to determine whether an applicant’s

preference for the work match the characteristic of the job. The JCQ is designed to collect
information on all aspects of the job which have a bearing in on employee performance
. absenteeism, turnover and job satisfaction. The underlying assumption of JCQ is that,
greater the compatibility between an applicant’s preference for the job and characteristic
of the job as perceived by the job seeker, the greater the probability of employee
effectiveness and longer the tenure.

43
 SELECTION

Selection is a negative process and involves the elimination of candidates who do not
have the required skills and qualification for the job proposed. Also it is a process of
differentiating between applicants in order to identify and hire those with grater
likelihood of success in job.

The objective of selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. It is the system of function and
devise adopted in a given company to ascertain whether the candidate’s specifications are
matched with the job specifications and recruitment or not.

Selection process or activities typically follow a standard patter, beginning with an initial
screening interview and concluding with final employment decision. The traditional
selection process includes: preliminary screening interview, completion of application
form, employment test, comprehensive interview, background investigation, physical
examination and final employment decision to hire.

Organization for selection

Until recently the basic hiring process was performed in a rather unplanned manner in
many organizations. In some companies, each department screened and hired its own
employees. Many mangers insisted on screening their own employees as they thought no
one else could do that as efficiently as they themselves.

44
But now selection is centralized and handled by the Human Resource Department. This
type of arrangement is also preferred due to some of these advantages:

- It is easier for the application because they can send their applications to a single
centralized department.

- It facilitates contact with applicants because issues pertaining to employment can

be cleared through one central location.

- It helps operating managers to concentrate on their operating responsibilities. This

is especially helpful during the chief hiring period.

- It can provide for better selection because hiring is done by specialist trained in
staffing techniques.

- The applicant is better assured of consideration for a greater variety of jobs.

- Hiring cost is cut because duplication of efforts is reduced.

- With increased governmental regulation on selection process, it is important that

people who know about these rules handle a major part of the selection process.

Ideally, a selection process involves mutually decision making. The organization

decides whether or not to make a job offer and how attractive the job offer should be.

BARRIERS TO EFFECTIVE SELECTION

The main objective of selection process is to hire people having competence and
commitment towards the given job profile. But due to some reason the main purpose of
effectively selecting candidates is defeated. These reasons are:

45
1: Perception or the Halo effect: Many a times the interviewer selects a candidate
according to the perception he has or he made up while talking or looking at the
individual. This way he does not see through the caliber or the efficiency of the
individual and many times it leads to the selection of the wrong candidates.

2: Fairness: During the selection process the interviewer does not select the individual
on the basis of his knowledge and hence the right type of the candidates is not selected.

3: Pressure: The people from the HR department and also have a lot of pressure from
the top management and from other top class people for selecting the candidates they
want. This ways the purpose of effective selection process of effective selection process
is defeated as they have to select that individual whether or not he is capable of the job.
that is being offered.

ESSENTIAL OF SELECTION PROCEDURE

- Someone should have the authority to select.

- There must be sufficient number of applicants from whom the required number of
employees to be selected.

- There must be some standards of personnel with which a prospective employee

may be compared.

46
FACTORS EFFECTING SELECTION DECISION

Includes:

- Profile matching

- Organization and social environment

- Multi correlations

- Successive hurdles

47
 DATA ANALYSIS
QUESTION: What are the sources for recruitment and selection?

Internal
9%

External
18%

Both
73%

About 75% of the manager say that they prefer both internal as well as external source for
recruitment and selection where as only 9% go for internal source and 18% go for external
sources.

Question: Which method do you mostly prefer for recruitment and selection
preferred way of recruitment?

Third party

3%

Indirect

32%

Direct
65%

About 65% of the mangers go for direct recruitment and selection and 32% go for
indirect and only 3 % go for third party recruitment way.

48
 Question: When do you prefer to go for manpower planning?

20%
30%
Yearly
Quarterly
No fixed T ime

50%

Around 50% of the managers go for Quarterly manpower planning and 20 % do not follow any
pattern they don’t have any fixed time where as 20% go for yearly.

Question: What are the sources for external recruitment are preferred?

25% Campu
34% interviews
Placement
agencies

Data bank

Casual
applicants
8%
33%

In AVIVA 34% of manager go for campus interviews, 33% go for data bank, 25% from the casual
application that are received and only 8% go for any placement agencies.

49
 Question: What form of interview did you prefer?

10%

Personal
Interviews
20%
Telephonic
40% interview

Video
Conferencing

Other
30%

Most of the manager Prefer Personal interviews, 30% prefer to take telephonic interviews
whereas only 20% go for video conferencing and rest 10% adopt some other means of interviews.

Question: How do you rate the HR practices of the company?

10%

30%
20% Very Good

Good

Average

Bad

40%

50% of the managers feel that HR department is good where and 30%say that’s its very good
where as 20% says its average and only 10% manager feel it’s bad.

50
 FINDINGS

In AVIVA life insurance most of the employees feel that’s the HR department is good.
About 75% of the managers says that they prefer both internal as well as external source for
recruitment and selection. About 65% of the mangers go for direct recruitment and selection
and less number for mangers prefer indirect or third party. Mostly the manpower
planning is done Quarterly and 20 % do not follow any pattern they don’t have any
fixed time. Aviva prefers to go for campus interviews and even casual application that are
received for recruitment but they hardly prefer placement agencies.

Most of the manager Prefer Personal interviews, 30% prefer to take telephonic interviews
where as only 20% go for video conferencing and rest 10% adopt some other means of
interview.

51
 CONCLUSION

This presents the summary of the study and survey done in relation to the Recruitment
and Selection in AVIVA life insurance. The conclusion is drawn from the study and survey
of the company regarding the Recruitment and Selection process carried out there.

The recruitment process at AVIVA life insurance to some extent is not done objectively and
therefore lot of bias hampers the future of the employees. That is why the search or
headhunt of people should be of those whose skill fits into the company’s values.

Most of the employees were satisfied but changes are required according to the changing
scenario as recruitment process has a great impact on the working of the company as a fresh
blood, new idea enters in the company.

Selection process is good but it should also be modified according to the requirements
and should job profile so that main objective of selecting the candidate could be
achieved.

52
 SUGGESTION

 Manpower requirement for each department in the company is identified well in

advance.

 If the manpower requirement is high and the recruitment team of the HR

department alone cannot satisfy it, then help from the placement agencies is needed.

 Time management is very essential and it should not be ignored at any level of the
process.

 The recruitment and selection through placement agencies as the last resort and is utilized
only when need.

 The recruitment and selection procedure should not to lengthy and time
consuming.

 The candidates called for interview should be allotted timings and it should not overlap
with each other.

53
 BIBLOGRAPHY

 C.B Mamoria and S.V. Gankar (2004), Personal Management Text and Cases.

 Himalaya Publication.

 K.Aswahthappa (2001),Human Resource and Personnel Management

 Human Resource Management, (2005), Dr.P.C. Pardeshi

 C.B Gupta (2005)

 www.avivaindia.com

54
 QUESTIONNAIRE FOR THE RESEARCH

1: When are the resources need and forecasted?

Quarterly
Monthly
Annually
Not fixed

2: How is the resource need forecasted?

…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………

3: How do you rate the recruitment procedure?

Short
Average
Long
Very Long
Can’t say

4: What is the process you follow for recruitment and selection? People explain the
same in brief
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………….

5: Which method do you mostly prefer from the following for recruitment and
selection?
Direct Method
Indirect Method
Third Party

55
6: What sources you prefer for recruitment and selection?
Internal sources
External sources
Both

7: What are the sources for internal sourcing among the following -:
Present permanent employees
Present temporary employees
Retrenched / Retired / employees
Deceased / disabled / employees

8: What are the sources for external recruitment among the following
Campus interviews
Placement agencies
Private employment agencies
Public employment agencies
Professional associations
Data bank
Casual applicants
Other, if any please mention
………………………………………………………………………………………
……………………

9: Which is the most successful method for recruitment?

…………………………………………………………………………………………
……………………

10: How many rounds of interviews are conducted?

1-3
3-5
More than 5

56
11: Are you satisfied with round of interviews conducted?
Yes
No
To some extent
Can’t say

12: What form of interview did you prefer?

Personal Interview
Telephonic Interview
Video Conferencing
Any two (then tick those two)
All three

13: Are you satisfied with the interview process?

Yes
No
To some extent

14: If no then what is the reason? And suggest the measures to be taken for
improvement?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………

15: Are you satisfied with the present method being followed by the company for
recruitment and selection?
Yes
No

16: If no, what steps would you prefer, to make improvement?

…………………………………………………………………………………………
…………………………………………………………………………………………
……………………………………………….

57
17: Are the aptitude test conducted?
Yes
No
Till some extent
Cant say

18: If yes then it is for

Fresher
Executives
Other (specify)
………………………………………………………………………………………

19: Do you conduct any of these test?

Psychometric test
Medical test
Reference test check
Other (specify)
………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………

20: How do you rate the HR practices of the company?

Very Good
Good
Average
Bad

58