CHAPTER-I

INTRODUCTION
  INTRODUCTION

1.1 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 employee’s 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,
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
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. statting, 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 mentionHR( human resource ) these days, a fewbywords 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
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

1.2 SCOPE OF THE STUDY:

 The study covers HDFC STANDARD LIFE INSURANCE in Hyderabad consisting of 100
employees.

1.3 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 critically analyze the functioning of recruitment and selection procedures.

 To know about the employee referral schemes.

 To identify areas where there can be scope for improvement

 To give suitable recommendation to streamline the hiring process

 To know the effectiveness or ineffectiveness of the process of recruitment and

selection

 To know the necessary steps that the organization involves in getting right person
at right place

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.

1.4 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
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

1.5 LIMITATIONS OF THE STUDY:

 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 feedback because of the limited time period & busy
schedule of the employees.

Problem with the confidential information.

DEFINITION OF RECRUITMENT AND SELECTION:

According to Edwin B. Flippo, “Recruitment is the process of searching the

candidates for employment and stimulating them to apply for jobs in the organization”.
Recruitment is the activity that links the employers and the job seekers. A few definitions
of recruitment are:
 A process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applications from which new employees are selected.

It is the process to discover sources of manpower to meet the requirement of

staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient working force.

Recruitment of candidates is the function preceding the selection, which helps

create a pool of prospective employees for the organization so that the management can
select the right candidate for the right job from this pool. The main objective of the
recruitment process is to expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool

of qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger initiates an
employee requisition for a specific vacancy or an anticipated vacancy.

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.

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. Infact, 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:
  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.
CHAPTER-II

INDUSTRY PROFILE
&
COMPANY PROFILE
2.1 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.
 The Government of India issued an Ordinance on 19th January, 1956
nationalizing 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 (Nationalization) 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.
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.

A minimum capital of US$80 million(Rs.400 Crore) is required by legislation to

set up an insurance business.
AUTHORITIES:

The industry recognizes 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
2.2 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 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 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 behavioral 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 top line only,
but to create maximization 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

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.
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
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.

Mr. Gautam R. Divan is a practicing 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

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

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).

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.

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 recognised 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 ADVANTAGES:

 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

 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 specialised 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.

OUR GOLAS:

 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 programmes.

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
specialised training courses.

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

programmes 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.

THE RESIDENTIAL ANNEXE…

The Residential Annexe 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 Annexe, is the air-conditioned Dining Room
offering Chinese, Continental, Mughlai and South Indian cuisines.
The Lounge…

Detached from the Residential Annexe 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 organised several in-house and international workshops at

CHF, we understand what it takes to organise a successful training programme. What's
more, 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 programmes 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 programmes 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 all
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 center 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.
CHAPTER-III
REVIEW OF LITERATURE
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 theCredentialsof 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.
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.
SOURCES OF RECRUITMENT:

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. Organizationssearch for

the required candidates from these sources for the followingreasons:

 The suitable candidates with skill, knowledge, talent etc., are generally available.
 Candidates can be selected without any pre-conceived notion or reservations.
 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 colleges 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.

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 advise 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 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. Infact, 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:

 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.
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
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
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
applicants or screening interviews. However, certain required amount of care is to be
taken to ensure that the desirable

(E) 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.

(F) 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.
TYPES OF PSYCHOLOGICAL TESTS:

(I) APTITUDETESTS:

(a) Intelligence Test (IQ)

(b) Emotional Quotient

(c) Skill Tests

(d) Mechanical Aptitude

(e) Psychometric Tests

(f) Clerical Aptitude Tests

Type of Tests

(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:

TYPES OF TESTS:

Tests are classified into six classes; each class is again divided into different types
of tests. They are:
I.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 test include spelling, computation, comprehension, copying, word measuring etc.

II. 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.

III. 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.

IV. 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.

V. PERSONALITY TESTS:

Personality refers to the unique set of characteristics that define an individual and
determine that person’s pattern of interaction with the environment. Personality is more
than social. Personality characteristics are essential for the job performance.

VI. 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.
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 in the
application blank and to check that information provided in the Application blank
regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes
and extracurricular activities of the applicant.

(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 interviews 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 managers are normally conducted are the
panel of experts.
(G) 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 manager also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities
etc...

(H) 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.

(I) 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.
(J) 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.

(K) 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.

(L) 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.
 CHAPTER-IV

DATA ANALYSIS
&
INTERPRETATION
4.1 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%
Total 100 100%

Internal method
External Method

Interpretation

The above table shows that fifty percent of respondents were recruited by internal
method and remaining fifty percent by external method

2. If by internal method, by which method were you recruited?

S. No Response No of Respondents Percentage

1 Referred by employees 35 70%
2 Inter department transfer 10 20%
3 Promotion 05 10%
Total 50 100%
 Referred by employees
Inter department transfer
Promotion

Interpretation

The percentage of usage of different internal methods of recruitment like

employee referrals, interdivisional and promotion followed by the organization is seventy
percent, twenty percent and ten percent respectively.

3. If by external method, by which method were you recruited?

S. No Response No of Respondents Percentage

1 HR Consultancy 12.5 25%
2 Newspaper 37.5 75%
Total 50 100%

HR Consultancy
Newspaper
Interpretation

The information regarding the preference of the external methods of recruitment

like HR consultancy; Newspaper advertisements followed by the organization are seventy
five percent and twenty five percent respectively.

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%
Total 100 100%

Direct call for an interview

Call to attend the test
Direct appointment

Interpretation

The above table shows that fifty five percent of respondents agreed direct call for
an interview and fifteen percent call to attend the test and the remaining thirty percent by
direct appointment.
5. If called for test what kind of test did you appear for?

S.No Response No of Respondents Percentage

1. Technical Test 2.25 15%
2. Situation Test 2.25 15%
3. Subject Test 10.5 70%
Total 15 100%

Technical Test
Situation Test
Subject Test

Interpretation

The above table reveals that fifteen percent of respondents attended technical test
fifteen percent of respondents attended situation test and seventy percent of respondents
appeared for subject test.

6. If called for an interview what kind of interview did you face?

S.No Response No of Respondents Percentage

1. Formal Interview 41.25 75%
2. Boar interview 13.75 25%
Total 55 100%
 Formal Interview
Boar interview

Interpretation

The table reveals that seventy five percent respondents faced formal interview,
and the remaining twenty five percent stress and board interview.

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%
Total 100 100%

HR Manager Round
3 Member Interview
Head of dept
Interpretation

The above table reveals that twenty percent of respondents faced HR manager
round twenty percent of respondents faced 3-member committee and sixty percent
respondents faced head of department round

8. Is the process of recruitment and selection satisfactory or dissatisfactory?

S. No Response No. Of Respondents Percentage

1. Satisfactory 80 80%
2. Dissatisfactory 25 20%
Total 100 100%

Satisfactory
Dissatisfactory

Interpretation

The above table reveals that twenty percent of respondents faced HR manager
round twenty percent of respondents faced 3-member committee and sixty percent
respondents faced head of department round.
CHAPTER-V

FINDINGS

SUGGESTIONS

CONCLUSION

BIBILOGRAPHY

QUESTIONNAIRE
5.1 FINDINGS
 Fifty percent of respondents were recruited by internal method and remaining
fifty percent by external methods.

 The percentage of usage of different internal methods of recruitment like

employee referrals, interdivisional and promotion followed by the organization is
seventy percent, twenty percent and ten percent respectively

 The information regarding the preference of the external methods of recruitment

like HR consultancy; Newspaper advertisements followed by the organization are
seventy five percent and twenty five percent respectively.

 Fifty five percent of respondents agreed direct call for an interview and fifteen
percent call to attend the test and the remaining thirty percent by direct
appointment

 Fifteen percent of respondents attended technical test fifteen percent of

respondents attended situation test and seventy percent of respondents appeared
for subject test.

 Seventy five percent respondents faced formal interview, and the remaining
twenty five percent stress and board interview

 Twenty percent of respondents faced HR manager round twenty percent of

respondents faced 3-member committee and sixty percent respondents faced head
of department round.
  Twenty percent respondents faced HR manager round twenty percent of
respondents faced 3-member committee and sixty percent respondents faced head
of department round.

5.2 SUGGESTIONS

While it is a fact thatHDFC 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.

 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.

 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.

 HDFC STANDARD LIFE INSURANCE areone of the important public utilities,

therequirements 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.

5.3 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.
5.4 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.hdfc standard life insurance.com

www.hrindia.com

www.insurance.org.in
5.5 QUESTIONNAIRE

Name:

Experience:

Department:

Designation:

---------------------------------------Please tick the appropriate

box--------------------------------------

Q.I. Did which method recruit you into the organization?

1. Internal method [
]

2. External method [
]

Q.2. If by internal method, by which method were you recruited?

1. Referred by employees [
]

2. Referred by management [
]
 3. Inter department transfer [
]

4. Inter company transfer [

]

Q.3. If by external method, by which method were you recruited?

1. HR consultancy [
]

2. Campus recruitment [
]

3. Paper advertisement [
]

4. Employment exchange [
]

5. Direct applicant approach [

]

Q.4.After screening of the application how did the organization approach you?

1. Direct call for an interview [

]

2. Call to attend the test ' [

]

3. Direct appointment [
]

Q.5. If called for tests, what kind of test did u appear for?

1. Technical test [
]
 2. Aptitude test [
]

3. Psychological test [
]

4. Subject test [
]

5. Situation test [
]

Q.6. If called for interview, what kind of interview did you face?

1. Formal and Structured interview [

]

2. Informal and Unstructured interview [

]

3. Stress interview [
]

4. Board interview [
]

Q.7. How many rounds of interview did you face?

1. HR manager [
]

2. 3-member interview committee [

]

3. Head of the dept interview [

]
Q.8. Is the process of recruitment and selection, satisfactory or
dissatisfactory?

1. Satisfactory [
]

2. Dissatisfactory [
]

Q.9. Do you agree that a good recruitment policy plays a key factor in the
working of an organization?

1. Strongly agree [
]

2. Agree [
]

3. Strongly disagree [
]

4. Disagree [
]

Q.10. Rate the process of recruitment and selection in this organization?

1. Excellent [
]

2. Average [
]

3. below average [
]
 4. Neutral [
]

Q.11. Which of the following attracted you to apply for the job at HDFC LIFE
INSURANCE Co. LTD?

1. Position [
]

2. Pay [
]

3. Company [
]

4. All the above [

]

Q.12. During the interview process, what do you think is valued the most in your
profile?

1. Qualification [
]

2. Experience [
]

3. Communication [
]

4. All the above [

]
Q.13. The recruitment process helps to maintain adequate manpower to fill up the
vacancies?

1. Strongly agree [
]

2. Agree [
]

3. Strongly disagree [
]

4. Disagree [
]

Q.14. Internal employees are given more preference for referring candidates?

1. Strongly agree [
]

2. Agree [
]

3. Strongly disagree [
]

4. Disagree [
]
Q.15. If dissatisfactory, state the reasons for dissatisfaction?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________

__________________________________________________________________

Q.16. what measures do you suggest for effective recruitment and selection process?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

_________________________________________________________________

_________________________________________________________________