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Project title
Project report submitted in the partial fulfillment of the requirement for the
Award of the degree of
MASTER OF BUSINESS ADMINISTRATION Of Punjab technical university Jalandhar By
Sukhjeet kaur
90472233989 Under the guidance of
VIKAS GULATI
Lala lajpat rai institute of engineering &technology Moga (2009-2011) 1
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ACKNOWLEDGMENT
I am the student of L.L.R.I.E.T Moga under the M.B.A is highly thankful to our respected VIKAS GULATI (Project (Project Guided) and to the respected MAGER H.O.D H.O.D SUBES SEDDI. Because due to these respected persons I am able to choose this Research Project. And now I am presenting the project report. Actually I have no words to explain my pleasure on the completion of this project. It was not an easy matter for me to complete this project. In addition to this, I would like to thank all my respondents, who has spent their valuable time with me and help me in getting the requested information for this project. I would also offer my gratitude to my parents and friends for their help. Last but not the least I am indebted to “Almighty” without whose blessings and grace this project would not have reached where it is now.
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Declaration
I name of the student, herby he rby declare that the research project entitled “EMOPLYEE ENGAGMENT” has been prepared by me as part of the requirement of the master of business administration Program of Punjab technical university Jalandhar .this is my original work and up to the Best of my knowledge.
I further declare that this project has not been submitted earlier to any other university or institute for the award of any degree of diploma
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EXECUTIVE SUMMARY SBI life insurance insurance is Ind India's ia's premier insurance insurance ena enablin bling g company. company. sbi Life insuran insurance ce is the one-stop-s one-stop-shop hop for require requiremen ments ts of services services in the areas of insurance, insurance, optimum investment, financial coverage and losses, mortality benefit, and an d he healt alth h opt option ion etc. etc. This This is ba backe cked d by sbi sbi life life insur insuranc ance e servi service ce suppo support rt infrastructure - the widest in the country The objective of the project was to understand how financial consultant play important role for insurance company like SBI LIFE. To understand the process of Recruitment of finanical consult in sbi life The main objective of the project is to understand the recruitment and selection of finan financia ciall consul consulta tant nt more more effec effectiv tively ely and eff effici icient ently, ly, be becau cause se finan financia ciall consultant consultant play most important role in business business of insurance. insurance. Market in Pune city was targeted. Various areas in city were selected. The data gave knowledge about customer satisfaction, loyalty & their feel about the sbi Life Insurance. Recruitment Recruitment was conducted conducted using questionnaire. questionnaire. The information information about various attributes & factors was collected about the financial consultant. All the data collected, primary data was filtered & analyzed, represented in the form of graphs & charts. Secondary data was also used in report such as company profile, on the basis of analysis of data, conclusions were drawn. On the basis of findings & conclusions, suggestions were given.
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RECRUITMENT AND SELE CTION : Recruitment Recruitment is concerned concerned with developing developing suitable techniques for attracting more and more candidates. The aim of personnel planning is to determine the needs for persons both in terms of number and type. For deciding about the number both present and future requirements should be taken into account. If there are expa expans nsio ion n plan plans s in ne near ar futu future re then then thes these e requ requir irem emen ents ts shou should ld also also be considered. Besides number, the type of persons needed is also important. The educational and technical requirements to manage various jobs should e properly analyzed so that right type of persons are employed. Recruitment is sometimes confused with employment. The two are not one and the the same same.. Re Recr crui uitm tmen entt is just just on one e step step in the the proc proces ess s of em empl ploy oyme ment nt.. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. When more persons apply for jobs then there will be scope for recruiting better persons.
DEFINITION : “Recruitment
is
prospective
employees
encouraging
the
them
to
process
of
and apply
searching
for
stimulatingand for
jobs
in
an
organization.”
Recruitment is defined as, “a process to discover the sources of manpower to meet meet the the requir requireme ements nts of the staffi staffing ng schedu schedule le and to emplo employ y eff effect ective ive measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.” Edwin B. Flippo defined recruitment as “the 5
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process of searching for prospective employees and stimulating them to apply for jobs in the organization.” organization.” Recruitment is a ‘linking function’-joining function’-joining together together those with jobs to fill and those seeking jobs. It is a ‘joining process’ in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter In order to attract people for the jobs, the organization must communicate the position in such a way that job seekers respond. To be cost effective, the recruitm recruitment ent process process should should attract attract qua qualifie lified d applican applicants ts and provide provide enough enough information for unqualified persons to self-select themselves out. Thus, the recruitment process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected
PURPOSES AND IMPORTANCE The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Specifically, the purposes are to:
•
Determ Determine ine the presen presentt and and futur future e requi requirem rement ents s of the organi organizat zation ion
in conjunction with its personnel-planning and job-analysis activities.
•
Incr Increas ease e the the poo pooll of job job cand candid idat ates es at at mini minimu mum m cost cost..
•
Help increase the success rate of the selection process by
reducing the number of visibly, under qualified or overqualified job applicants. •
Help Help reduc reduce e the the pro probabi babilit lity y that that job job appl applica icants nts,, once once recrui recruited ted and selected, will leave the organization only after a short period of
time. • be
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Begi Begin n ident identif ifyi ying ng and pre prepa pari ring ng pote potent ntia iall job appl applic ican ants ts who who will will
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appropriate candidates. •
Indu Induct ct outs outsid ider ers s with with a new new pers perspe pect ctiv ive e to lead lead the the comp compan any. y.
•
In f u s e
•
Develop an organizational culture that attracts competent people
fresh
blood
at
all
levels
of
the
organization.
to the company. •
Searc arch or head hunt/head pouch people whose skills fit the
company’s
values.
•
Dev Devise ise
metho ethodo dolo logi gies es
for for
asse assess ssin ing g
psy ps ychol cholog ogiical cal
traits aits..
•
Sear Search ch for for tale talent nt glob global ally ly and and not not just just with within in the the comp compan any. y.
•
Design entry pay that competes on quality but not on quantum.
•
Anticipate and find people for positions that do not exist yet.
•
Incr Increas ease e organ organiz izat atio ional nal and and indiv individ idua uall effect effectiv iven enes ess s in the short short
term and long term. •
Evalua Evaluate te the effect effective ivenes ness s of of vari various ous recrui recruitin ting g ttech echniq niques ues and sources for all types of job applicants.
Recruitment represents the first contact that a company makes with potential employees. It is through recruitment that many individuals will come to know a company, and eventually decide whether they wish to work for it. A well-planned and well-managed recruiting recruiting effort will result in high- quality applicants, applicants, whereas, a hap haphaz hazard ard and piecemeal piecemeal effo effort rt will result in mediocre mediocre ones. High-qu High-qualit ality y employ employee ees s cann cannot ot be selec selected ted wh when en be bette tterr candi candidat dates es do not know know of job openings, are not interested in working for the company and do not apply. The recruitm recruitment ent process process should should inform inform qua qualifie lified d individu individuals als about about employme employment nt oppo op port rtun unit itie ies, s, crea create te a po posi siti tive ve imag image e of the the comp compan any, y, prov provid ide e en enou ough gh information about the jobs so that applicants can make comparisons with their qualifications and interests, and generate enthusiasm among the best candidates so that they will apply for the vacant positions.
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The negative consequences of a poor recruitment process speak volumes about its role in an organization. The failure to generate an adequate number of reasonably qualified applicants can prove costly in several ways. It can greatly compl complica icate te the selec selectio tion n proces process s an and d may resul resultt in loweri lowering ng of selec selectio tion n standa standard rds. s. The The po poor or qua qualit lity y of select selection ion means means extra extra cost cost on train training ing and supervis supervision. ion. Furtherm Furthermore ore,, whe when n recruit recruitment ment fails fails to meet the organiz organizatio ational nal needs for talent, a typical response is to raise entry-level pay scales. This can distort traditional wage and salary relationships in the organization, resulting in avoidable consequences. Thus, the effectiveness of a recruitment process can play a major role in determining the resources that must be expended on other HR activities and their ultimate success
RECRUITMENT POLICY :
It specifies the objective of recruitment and provides a framework for the implementation of the recruitment programme. A recruitment policy may involve 1) It shoul should d prov provid ide e empl employ oyee ees s with with job job secu securi rity ty and and cont contin inuo uous us employment. 2) It should integrate organizational needs and employee needs. 3)
It
should
matc atch
the
qualities
of
the
employees
with
requirements of the work for which they are employed. 4) It should highlight the necessity of establishing job analysis.
FACTORS AFFECTING RECRUITMENT :
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the
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Ever Every y organ organiz izat atio ion, n, big big or smal smalll has has to enga engage ge in recr recrui uitm tmen entt of persons, recruitment has two aspects1) To find out the number of vacancies to be notified and the type of applicants needed to fill them. 2) To approach the potential applicants to apply for such vacancies. No
orga organi niz zati ation
can can
recr ecruit uit
suc su ccessf essful ullly
witho ithout ut
taki taking ng
int into
consideration the following factors – 1) The Economic Factors – The economic conditions of a country influence the recruitment process in all organization. The globalization and liberalization of Indian economies since 1991 onwards has resulted in a boom in financial services in India. As a result of the new economic policy, the demands of well
2) The Social Factors – These These also also affect affect the recrui recruitme tment nt policy policy of an organi organizat zation ion.. Social Social changes in the past two decades in India, have forced organization to commitment to broad principles such as filling vacancies with the best-qualified individuals. It may also involve the organizational system to be developed for implementing recruitment programme and procedure to be employed.
ELEMENTS OF GOOD RECRUITMENT POLICY :
A good recruitment policy must contain the following elements: 1) Orga Organi niza zati tion onal al obje object ctiv ives es : Both Both sh shor ortt term term and and long long term term organ organiz izat atio iona nall obje object ctiv ives es must must be take taken n into into consi conside dera rati tion on into into consideration. Identification of recruitment needs :
2) Preferred sources of recruitment : The sources of recruitment should be identified properly. 3) Mone Moneta tarry
asp spe ects cts
:
The cost ost
of recrui cruitm tmen entt
implications of the same have to be kept in mind also.
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and and
fina financ ncia iall
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PRE-REQUISITES OF GOOD RECRUITMENT POLICY 1) It should be in conformity with the general personnel policies. 2) It should be flexible enough to meet the changing needs of the organization. 3) It shoul should d prov provid ide e empl employ oyee ees s with with job job secu securi rity ty and and cont contin inuo uous us employment. 4) It should integrate organizational needs and employee needs. 5)
It
should
match
the
quali alities
requirements of the work for
of
the
employees
with
the
which they are employed.
6) It should highlight the necessity of establishing job analysis.
FACTORS AFFECTING RECRUITMENT : Ever Every y organ organiz izat atio ion, n, big big or smal smalll has has to enga engage ge in recr recrui uitm tmen entt of persons, recruitment has two aspects1) To find out the number of vacancies to be notified and the type of applicants needed to fill them. 2) To approach the potential applicants to apply for such vacancies. No
orga organi niz zati ation
can can
recr ecruit uit
suc su ccessf essful ullly
witho ithout ut
taki taking ng
int into
consideration the following factors – 1) The Economic Factors – The economic conditions of a country influence the recruitment process in all organization. The globalization and liberalization of Indian economies since 1991 onwards has resulted in a boom in financial services in India. As a result of the new economic policy, the demands of well 2) The Social Factors – These also affect the recruitment policy of an organization. Social changes in the past two decades in India, have forced organization to place increasedemphasis on recruitment. The
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mentality of modern employees has changed from just any job to a satisfying career.
3) The Technological Factors – New technology have created new jobs and an d exist existing ing jobs jobs ha have ve un under dergo gone ne rapid rapid chan change ges. s. Sever Several al old old jobs jobs ha have ve disappeared from the scene. 4) The Legal Factors – The different legislative policies governing chil child d labo labour ur,, nigh nightt shi shift fts, s, bond bonded ed labo labour ur etc. etc. have have brou brough ghtt legal legal environment to a major factor.
PROCESS OF RECRUITMENT It passes through the following stages : 1) Recruitment process begins when personnel department receives requisition for recruitment from any department of the company. 2) Locating and developing the sources of required number and type of employees. 3)
Ident Ide ntify ifying ing the prosp prospec ectiv tive e
emplo employee yees s
with with
requi required red chara characte cteris ristic tics. s.
4) Developing the techniques to attract the desired candidates. 5) The next stage in the process is to stimulate as many candidates as possible. 6) Evaluating the effectiveness of recruitment process.
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PROCESS OF RECRUITMENT COMPANY ADOPTS : SOURCES OF RECRUITMENT
Personnel Planning Job Analysis Recruitment Planning Searching Evaluation and control Strategy Development Selection Screening
– Before an organization actively begins to recruit applicants applicants it should consider the mostly likely source of the type of employee it needs. Some companies try to develop new sources while most try to tackle the existing sources they have. These sources accordingly may be termed as internal and external. Internal Sources – This This is on one e of the the import importan antt sourc sources es of recru recruitm itmen ent. t. The em emplo ployee yees s already working in the organization may be more suitable for higher jobs than those recruited outside. Internal sources consist of the following :
1) Present employee: employee: Promotions Promotions and transfers among the present present employees can be a good source of internal recruitment.
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2) Employ Employee ee Refer Referral rals: s: In an organi organizat zation ion with with a large large number number of employees referrals can provide quite a large pool of potential organizational members. 3)
For Former
Empl Employ oye ee
:
Thes These e
are
ano another ther
inte nternal nal
sour sourc ce
of
recruitment. Some retired employees may be willing to come back to work. 4) Previous Employees : Those who have previously applied for jobs can be contacted bymail.
External Sources : These are as follows – 1. Advertisement 2ProfessionanOrganization 3.DataBank 4.Walkin 5.RecruitingAgencies 6.Competitors 7.DisplacedPersons 8. E-recruitment 12. Cold calling
RECRUITMENT PROCESS COMPANY ADOPTS– 1) Internalsource
2)Advertisement 3)Consultants 4) Data banks
INDUCEMENTS
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Organizational inducements are all the positive features and benefits offered by an organization organization that serves to attract job applicants to the organisation. organisation. Three inducements need specific mention here, they are:.Compensation: Star Starti ting ng
sala salari ries es,,
freq freque uenc ncy y
of
pay pay
incr increa ease ses, s,
incentives and fringe benefits can all serve as inducements to potential employees.
Career Opportunities: These help the present employees to grow personally and professionally and also attract good people to the organization. The feeling that the company takes care of employee career aspirations serves as a powerful inducements to potential employees.
Imag Image e
or
Repu Re puta tati tion on::
Fact Factor ors s
that that
affe affect ct
an
orga organi nisa sati tion on’s ’s
reputation include its general treatment of employees, the nature and quality of its products and services and its participation in worthwhile social endeavors.
CONSTRAINTS If a firm firm ha has s a po poor or imag image e in the the ma mark rket et,, ma many ny of the the pros prospe pect ctiv ive e candidates may not even apply for vacancies advertised by the firm. If the job is not attractive, qualified people may not even apply. Any job that is viewed as borin bo ring, g, ha haza zardo rdous us,, an anxie xiety ty produ produci cing, ng, low-pa low-payi ying, ng, or lacki lacking ng in promot promotion ion potentia potentiall seldom seldom will attract a qualifie qualified d pool of app applica licants. nts. Recruit Recruiting ing effo efforts rts require money. Sometimes because of limited resources, organizations may not like to carry on the recruiting efforts for long periods of time, this can, ultimately, constrain a recruiter’s effort to attract the best person for the job. Government policies often come in the way of recruiting people as per the rules of the company or on the basis of merit/seniority, etc. For example, reservations to specific groups (such as scheduled castes, scheduled tribes, backward castes,
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physically handicapped and disabled persons, ex-servicemen, etc.) have to be observed as per constitutional provisions while filling up vacancies in government corporat corporation ions, s,
departm dep artmenta entall
underta und ertaking kings, s,
local local
bodies, bodies, quasi-go quasi-govern vernment ment
organizations, etc.
CORPORATE MISSION, OBJECTIVES, STRATEGIES AND TACTICS (MOST) Corporations Corporations have started linking their Mission, Objectives, Objectives, Strategies Strategies and Tactics (MOST) to the functions of recruitment and selection. The economic libera liberaliz lizati ations ons and conse conseque quent nt compe competit tition ion throug through h qua qualit lity y an and d servi services ces neces ne cessit sitat ated ed the the compa companie nies s to searc search h for an and d att attrac ractt compe competen tentt hu human man resources. Corporations focusing on new business development will have to seek seek
entr en tre epren preneu euri rial al
abili biliti ties es,,
comp compan anie ies s
plan planni ning ng
to
with withdr draw aw
from from
divers diversifi ifica catio tions ns must must look look for pragma pragmatis tists ts an and d compan companies ies chas chasing ing growth growth alliances should employ people comfortable comfortable in different cultural backgrounds. backgrounds. Above all, companies must hire for the future, anticipating jobs that may not be in existence yet. Recruitment managers must focus for attitudes and approaches that fit the corporate goals and culture
CENTRALISED V/s DECENTRALISED RECRUITMENT Recru Re cruitm itmen entt prac practic tices es vary vary from from on one e orga organiz nizat ation ion to an anoth other er.. Some Some organizations organizations like commercial banks resort to centralized centralized recruitment while some organi organiza zatio tions ns like like the Ind Indian ian Railwa Railway y resor resortt to decen decentra traliz lized ed recru recruitm itmen entt practices. practices. Personnel department at the central office performs all the functions of recruitment in case of centralised recruitment and personnel Depart Departmen ments ts at unit unit level/ level/zon zonal al level level perfor perform m all the functi functions ons of recruitment Concerning to the jobs of the respective unit or zone.
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MERITS OF CENTRALISED RECRUITMENT •
Averag Average e cost cost of of recru recruitm itment ent per candid candidate ate/un /unit it s shou hould ld b be e relat relativ ively ely less due to economies of scale.
•
It woul would d hav have e mor more e exp exper erti tise se avai availa labl ble e to it. it.
•
It can ensure ensure broad broad unifor uniformit mity y among among human human reso resourc urces es of vari various ous Units/zones in respect of education, skill, sk ill, knowledge, talent, etc.
•
It would generally be above malpractices, abuse of powers, favoritism, bias, etc.
•
It would would facili facilitat tate e inte interch rchang angeab eabili ility ty of staff staff among among variou various s
units/zones.
• It enables the organization to have centralized selection procedure, promotional and transfer procedure, etc. •
It
ensures
the
most
effective
a nd
suitable
placement
to
candidates. • It enables centralized training programmed which further brings Uniformity and minimizes average cost of staff.
MERITS OF DECENTRALISED RECRUITMENT 1
The The unit unit conce concern rned ed conce concent ntra rate tes s only only on thos those e sour source ces/ s/pl plac aces es
wherein Normally gets the suitable candidates. As such the cost of recruitment would be relatively less. 2 The The unit unit gets gets most most su suit itab able le cand candid idat ates es as it is well well awar aware e of the the requ requir irem emen ents ts
of
the the
job job
rega regard rdin ing g
cult cultur ure, e,
trad tradit itio iona nal, l,
fami family ly
background aspects, local factors, social factors, etc. •
Units can recruit cand andidates as and and when they are required
without
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any delay.
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•
The The uni units woul would d enjo njoy free freedo dom m in find findin ing g out out, deve devellopi oping the
sources,
in selecting and employing the techniques to stimulate the
candidates. •
The The unit unit would would rela relati tive vely ly enjo enjoy y advant advantag age e about about the the avail availabi abili lity ty of
information, control and feedback and various functions/processes of recruitment. •
The unit would enjoy better fami amiliari arity and and control over the
employees it recruits rather than on employees selected by the central recruitment agency.
Both the systems of recruitment would suffer from their own demerits. Hence, the management has to weigh both the merits and demerits of each system before making making a final final decision decision abo about ut central centralizin izing g or decentr decentraliz alizing ing the recruit recruitment ment.. Alternatively Alternatively management may decentralize decentralize the recruitment recruitment of certain categories of emplo employee yees s prefer preferabl ably y middl middle e an and d top level level manage manageria riall person personne nell an and d centralize the recruitment of other categories of employee’s preferably lower level positions in view of the nature of the jobs and suitability of those systems for those categories of positions. The management has to find out and develop the sources sources of recruitme recruitment nt afte afterr decidin deciding g upon central centralizin izing g or decentra decentralizin lizing g the recruitment function
INTRODUCTION INTRODUCTION SELECTION The size of the labour market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of applicants for selection. 17
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Definition To select mean to choose. Selection is the process of picking individuals who have relevant qualifications qualifications to fill jobs in an organisation. The basic purpose is to choose the individual who can most successfully perform the job from the pool of qualified candidates. Purpose The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an organisation best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. The most suitable person is then picked up after eliminating the unsuitable applicants through successive stages of selection process. How well an employee is matched to a job is very important because it is directly affects the amount and quality of employee’s work. Any mismatched in this regard can cost an organisation a great deal of money, time and trouble, especially, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. He may even circulate ‘hot news’ and juicy bits of negative negative information information about the company, causing incalculable incalculable harm to the compa company ny in the the long long run. run. Eff Effect ectiv ive e elect election ion,, there therefor fore, e, deman demands ds cons constan tantt monitoring of the ‘fit’ between people the job.
The Process Selec Selectio tion n is usuall usually y a series series of hu hurdl rdles es or steps steps.. Each Each on one e must must be successfully successfully cleared before the applicant proceeds proceeds to the next one. The time and emphasis place on each step will definitely vary from one organisation to another and indeed, from job to job within the same organisation. The sequence of steps
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may also vary from job to job and organisation to organisation. For example some organisations organisations may give more importance to testing while others give more emphasis to interviews and reference checks. Similarly a single brief selection inter intervie view w might might be en enoug ough h for for ap appli plican cants ts for lower lower level level po posit sitio ions, ns, wh while ile applicants for managerial jobs might be interviewed by a number of people. Reception A company is known by the people it employs. In order to attract people with talents, skills and experience a company has to create a favourable impression on the applicants’ right from the stage of reception. reception. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. Employment possibilities must be presented honestly and clearly. If no jobs are available at that point of time, the applicant may be asked to call back the personnel department after some time.
SELE SE LECT CTIO ION N
OF
FINA FINANC NCIA IAL L
CONS CONSUL ULTA TANT NT
UNDE UN DERS RSTA TAND NDIN ING G
SELECTION PROCESS Recruitment function helps the organization to develop a pool of prospective human resources. 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 searching for prospective 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 person who have good social contact. The objective of the selection decision is to choose the individual who can most successfully perform the job
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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 specifications are matched with the job specifications and requirements or not.
The The sele select ctio ion n proc proces ess s can can be succ succes essf sful ul if the the fo foll llow owin ing g requirements are satisfied: 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 empl emplo oyee yee
may
be
com omp pare ared,
i.e. .e.
a
com compreh prehen ensi sive ve
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.
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 prog progra ramm mme. e. If the the righ rightt pe pers rson on is sele select cted ed,, he is valu valuab able le asse assett to the the organization
.SELECTION PROCEDURE: Selection procedure employs several methods of collecting information about the candidates qualifications, qualifications, experience, physical and mental ability, nature and behav be havior ior,, know knowle ledge dge an and d ap aptit titude ude for judgi judging ng whe whethe therr a given given ap appli plica cant nt is suitable or not for the job. Therefore the selection procedure is not a single act
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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
IN DETAIL 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 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.
(B) HUMAN RESOURCE PLAN: Ever Every y comp compan any y plan plans s for for the the requ requir ired ed numb number er of and and kind kind of employees for a future date. This is the basis for recruitment function.
(c) RECRUITMENT: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It is the basis for the remaining technologies of the screening the candidates in order to select the appropriate candidates for the jobs . (D) DEVELOPMENT OF BASES FOR SELECTION: The The comp compan any y ha has s to sele select ct the the ap appr prop opri riat ate e cand candid idat ates es from from the the po pool ol of applicants. applicants. The company develops or borrows the appropriate bases/techniques bases/techniques for screening the candidates in order to select the appropriate candidates candidates for the jobs. (E) APPLICATION FORM: 21
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Appl Applic icat atio ion n form form is also also know known n as ap appl plic icat atio ion n blan blank. k. The The tech techni niqu ques es 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 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
Educational
qualifications
Work Salary Personal
experience (drawing attainments
and including
likes
expecting) and
dislikes
References F) 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 candida candidate te s ability ability in arithmet arithmetical ical calculatio calculations, ns, to know the candida candidate te s attitu att itude de towa towards rds the the job, job, to measur measure e the candid candidate ate s apt aptitu itude de,, reaso reasonin ning, g, knowledge in various disciplines, general knowledge and English language.
(G) 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 thus provi rovide ded d by the the can candida didate te ma may y be rela relate ted d to the the job job or pe pers rson onal al specifications specifications regarding regarding education, education, experience, experience, salary expectations, attitude towar tow ards ds job, job, ag age, e, ph physi ysical cal ap appe peara aranc nce e an and d oth other er requ require iremen ments ts etc. etc. Thus, Thus, preliminary interview is useful as a process of eliminating the undesirable and
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unsuitable candidates. If a candidate satisfies the job requirements regarding most of the areas, he may be selected for further process. Preliminary 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 workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate.
(H) BUSINESS GAMES: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem- solving skills, human relations skills etc. participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successful candidate in the game will be most successful one on the job . GROUP DISCUSSION is used in order to secure further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or subject matter. The candidates in the group are required to analyze, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarizing or concluding aptly. 23
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The selection panel, based on its observation, judges the candidate s skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidate s writing ability as well.
Types of test: Tests are classified into six classes, each class is again divided into different types of tests. They are: APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ). (1) Skill tests : These tests measure the candidate s ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also. (2) Mechanical aptitude tests: These tests measure the capabilities of spatial visualization, perceptual speed and knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc.
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(3) Psychomotor tests: These tests measure abilities like manual dexterity, motor ability and eyehand coordination of candidates. These tests are useful to select semi-skilled workers and workers for repetitive operations like packing and watch assembly. (4) Clerical aptitude tests: These types of tests measure specific capacities involved in office work. Items of this tests include spelling, computation, comprehension, copying, word measuring etc.
ACHIEVEMENT TESTS: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the candidate s achievement in his career is tested regarding his knowledge about the job and actual work experience.
SITUATIONAL TESTS: This test evaluates a candidate s in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situations of the job. (1) Group discussion: 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. (2) In basket:
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Situational test is administered through in basket method. The candidate in this test is supplied with actual letters, telephone and telegraphic message,reports and requirements by various officers of the organization, adequate information about the job and organization. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda.
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 . PERSONALITY TESTS: These tests prove deeply to discover clues to an individual s value system, his emotional reactions and maturity and characteristic mood. They areexpressed in such traits like self-confidence, tact, distrust, initiative, emotional control, optimism, decisiveness, sociability, conformity,objectivity, patience, fear, judgment dominance or submission, impulsiveness, sympathy, integrity, stability and self-confidence. as (1) Objective tests : Most personality tests are objective tests as they are suitable for group testing and can be scored objectively. (2) Projective tests:
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Candidates are asked to project their own interpretation of certain standard stimulus basing on ambiguous pictures, figures etc. under these tests. Personality tests have disadvantages in the sense that sophisticated candidates can fake them and most candidates give socially acceptable answers. Further, personality inventories may not successfully predict job success. A number of corrective measures tried as personality inventories are widely subject to faking. They are: Forced Forced choice choice of Edward Edward s personnel personnel prefer preference ence schedu schedule. le. Gord Gordon on pers person onal al prof profil ile. e. The Minnesot Minnesota a Multi-phasi Multi-phasic c Inventory Inventory offers offers differe different nt methods methods forIdentifying faking. The faking can be countered by repeating the same question in different parts to measure consistency.
MULTI-DIMENSIONAL TESTING: However, the need for multi-skills is being felt be most of the companies consequent upon globalization, competitiveness and the consequent customercentered 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. J) INTERVIEW: Final interview follows after tests. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The different types of interviews are:
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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)Background 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 extra curricular 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:
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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 answering, criticizing his opinions, asking questions pertaining to unrelated areas, keeping silent for unduly long periods after he has finished speaking etc. Stress during the middle portion of the interview gives effective results. Stress interview must be handled with utmost care and skills. This type of interview is often invalid, as the interviewer s need for a job and his previous experience in such type of interviews may inhibit his actual behavior under such situations. (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. Under the discussion interview method, one topic is given for discussion to the candidates who assemblein one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are at ease in this category of interview because of its informality and flexibility. (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
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(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 mangers are normally conducted are the panel of experts. (7) Depth interview: In this interview, the candidate would be examined extensively in core areas of job skills and knowledge. Experts test the candidate s knowledge in depth. Depth interviews are conducted for specialist jobs.
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 complaining, complaining, promotional opportunities, work adjustment and allotment etc. The personnel manger also interviews the candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The head of the department and the personnel manager exchange the view and then they jointly inform their decision to the chairman of the interview board, which finally makes the decision about the candidate s performance and their ranks in the interview. Most of the organizations have realized that employee s positive attitude matters much rather than employee s skill and knowledge. Employees with positive attitude contribute much to the organization. Hence, interviewers look for the candidates with the right attitude while making final decision.
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(K) MEDICAL EXAMINATION: Certain jobs require certain physical qualities like clear vision, perfect hearing unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities. Medical examination can give the following information: Whether the applicant is medically suited for the specific job Whether the applicant has health problems or psychological attitudes likely to interfere with work efficiency or future attendance. The offer. Whether the applicant suffers from bad health which should be corrected before he can work satisfactorily It reveals the applicant s physical measurements and It is used to check the special senses of the candidates.
(L) REFERENCE CHECKS : dition,careerAfter dition,careerAfter 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 candidates academic achievement or form the applicant s previous employer, who is well versed with the applicant s job performance, and sometimes from coworkers. Incase the reference check is from the previous employer; information for the following areas may be obtained. They are job title, job description, and period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again and soonFurther, information regarding candidate s regularity at work, character, progress etc. can be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate s performance, character and behavior.
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However, a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed, actual information, which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organizations. But a good reference check used sincerely will fetch useful and reliable information to the organization. (M) FINAL DECISION BY THE LINE MANAGER: The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications but alsobecause 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 andpersonnel managers should be established to take proper decisions. (N) JOB OFFER: Thus, after taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization offers the job to the successful candidates either immediately or after some time depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer.
RECRUITMENT AND SELECTION AT SBI LIFE INSURANCE Recruitment is the process of attracting prospective candidates who are likely to get selected. Recruitment process starts with the drafting of advertisement for the 32
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required post mentioning the name of the post, qualifications required, place of posting etc. the advertisement is released in all major and national newspaper across the country. Not only print media, but other media like internet is also used for posting the advertisement. Placement agencies and educational institutions are considered if the requirements are for fresh graduates. Employee references by are also encouraged. After receiving the applications, it is initially screened by HR division based on minimum requirements and qualifications prescribed for the post. Screened applications from HR division are sent to respective divisional heads for their screening in case of applications for higher posts. Selection is the process of selecting right candidates from the list of prospective candidates. Selection process involves tests, interviews, group discussions, psychometric tests or a combination of these depending on the nature or sensitivity of the level and the post. For technical posts, tests are used as elimination means while for some other posts like management trainee, tests are not used as elimination means. The shortlisted candidates are called for the final interview. Regret letters are sent to those who are not shortlisted. Background checking of the shortlisted candidates is done to ensure that they will fit with the culture of the organization. Job offers are made to the selected candidates and they are asked to give their confirmation that they accept the job offer. On receiving their confirmation, appointment letter is prepared by personnel and administration division and given to the candidate at the time of joining. Salary offer is a part of Human resource division while personnel and administration division handles salary administration. 57
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CHAPTER :3
RESEARCH METHODOLOGY
The curren currentt chapte chapterr deals deals with with the resear research ch methodo methodolog logy y adopted adopted In presen presentt study study indicates the selection of sample respondents, collection of data. choice of statistical tools for analysis of data, in addition to pointing po inting out limitations’ of the study.
Methodology adopted :
The research is aimed at to evaluate employee engagement at SBI bank. The city will cover under the research Moga.,Bagha purna Research design :
The design for this study is descriptive. Sampling unit:
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The sample size is selected to give the true picture. The size is
.
ANLAYSIS AND FINDINGS From the analyzed data I could find that – The main source of the recruitment is through external sources i.e. through advertisement.
The other source of recruitment is through references , natural
market and consultants.
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Maximum prospects fulfils all the criteria prescribed by the IRDA.
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Research shows that the Financial Advisors generally belong to the
age of 30
It is found that the company provides both types of training and
mainly
50 years
prospects goes for the online training.
Every year company recruits as many as 50 Advisors in order to
increase the sales force of the company.
Most of the recruited people are aware of the insurance sector and
the person who are not aware of the insurance sector are made aware through the training before sitting for the test.
It has been found through the studies that most of the candidate
recruited belongs the banking and insurance sector . It means that they are having some knowledge about the insurance sector.
For most of the prospects attending 21 days training is a major
problem. As the timings for the training are full time 10:30 am to 5.00 p.m.
For most of the prospects they join SBI LIFEINSURANCE for the
extra income.
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Most of the recruited people continue working as a Financial
Advisor.
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LIMITATIONS
1) This Project Report is restricted only for the interviewed people.
2) Biased reply of the respondents like giving wrong information.
3) Non availability of the data or the relevant information of the respondent.
4) Sometimes it happens that the respondent was busy so as to get the information it becomes difficult 5) The project is done in near by areas of the Aundh Branch of the company & therefore findings of it may not be applicable in other areas. 6) Time Constraints – The duration of the project is only 2 months. In this duration we have to finish the project so the sample size considered for this project is also limited which may give some misleading outputs. 7) Although ICICI Prudential is a well known brand, it invests heavily in the advertisements, but somehow the concept of financial advisor was not known to the customers and it requires great amount of efforts to convince the various benefits to them.
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CONCLUSION AND SUGGESTION 1. It is found that in the last five years the Indian economy has progressed, which has increased the average purchasing power & the insurance sector has contributed significantly in this. 2. Since last five to six years many Private Company has entered in insurance sectors & because of which the Indians are having number of options in front of them investing their money & to safeguard the life. 3. While doing this project it is found that recruiting of the advisor is done by the Unit Manager, and the parameters on which the advisors are to be recruited are :
• Income Level – 1.2lacs to 2 lacs per annum
• Marital Status – Married
• Age – above 25 years
• Minimum Education – Graduation
• Staying in the same city for more than 5 years
a dvisor is depending on their 4 . The study of the profile of the advisor
industry background i.e. their work experience and the age wise distribution.
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5. The level of awareness of the prospects about the private insurance company has increased because of the heavy advertising ad marketing by the companies over the period of time. 65 6. It important to appoint only those prospects as financial advisor, who can give & generate long term business for the company, so to analyze the prospects & study their status is very important thingd 7. Most of the prospects to join, as their first preference to earning extra money, second to start business with no capita investment, third to Association with the No. 1 Private Life Insurance Company.
Based on the findings in the Research following suggestions are made – Finding new prospects is like breathing, so Unit Manager should be in regular touch with with the market so that he will will gets gets some good prospects.
Company should go for regular Market Survey for finding out the smart worker who can stay under the Managers Sales Team, and will generate long term business. Branch Manager should take the feedback from the existing advisors so that he can easily easily understand the the advisors advisors problem problem as well s he can recommend new changes.
The company should concentrate on the rural part so that they can compete with LIC India, and can generate generate some business from from there there as it is found that most of the Private Life Insurance companies are targeting the urban market. Company should follow the pull strategy where it can use advertising media, by preparing attractive Ads, through Newspaper, T.V. , and radio can increase the awareness about the company & will help in improving the market share.
Unit Manager should meet regularly with the existing advisors so that he can find out their problems & also take their their suggestions.
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Most of the Indian families still believe in the LIC. They don’t feel comfortable with other brands. In such cases ICICI Prudential can optfor descriptive advertisements how our solutions are better than the traditional business solutions.
BIBLIOGRPHAY WEBSITES : www.sbilife.com in www.insuranceguide.com www.economictimes.com BOOKS : 1) HUMAN RESOURCE MANAGEMENT : SHASHI K. GUPTA 2) PERSONNEL MANAGEMENT : C. B. MAMORIAL JOURNALS & ARTICLES : 1) IRDA JOURNAL 2) BROUCHERS & REPORTS OF COMPANY
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