Hr Practices at Hdfc Essay

A Project Report On HR Practices And Recruitment and Selection of HDFC Standard Life Insurance Company In Partial Fulfillment of M. B. A (Masters of Business Administration) Submitted by: Monica Goyal Roll no. 918 Student Declaration I declare that the project entitled “PROJECT ON HUMAN RESOURCE PRACTICES IN HDCF-SLIC” Is an original done by me and no part of the project is taken from any other project or material published or otherwise or submitted earlier to any other college or university.

I was actively involved with HDFC Standard life insurance company ltd, for a period of 8 weeks, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. ACKNOWLEDGEMENT I would like to thanks Mr. PRAKASH DEVGANIYA is the CHANNEL DEVELOPMENT MANAGER of the HDFC Standard Life Insurance Company Ltd. for giving me opportunity to work with this organization. I would like thanks Mr. PRAKASH DEVGANIYA without whose support, this project would not have been possible. Heartiest thanks for his constant support and motivation.

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My gratitude to everyone there at HDFC Standard Life Company who has helped me directly or indirectly in the completion of this project. COMPLETION CERTIFICATE INSTITUTE CERTIFICATE ABSTRACT I, student of CHANAKYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH affiliated to MUMBAI UNIVERSITY pursuing MBA course. I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite all the limitations, obstacles, hurdles and hindrances, I have toiled and worked to my optimum potential to achieve the desire goal.

Being in the highly competitive world of business, I came across some difficulties to make my objectives a reality. Anyhow, with the kind help and genuine interest of one and all and formally supported by the guidance of my guide, I am presenting this hand carved effort in colored. I tried my level best to conduct a research to gain a thorough knowledge about the project in my topic “HR PRACTICES IN HDFC Standard Life Insurance Company” I have put the best of my efforts and have also tried to do justice with the available. If anywhere something is found unacceptable or unnecessary to the theme, you are welcome with your valuable suggestions.

I was actively involved with HDFC Standard life insurance company ltd , for a period of 8 weeks, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. INDEX Sr. no. | TOPIC | Page No. | 1. | INTRODUCTION| 8. | 2. | PRODUCT RANGE| 11. | 3. | OBJECTIVE OF THE PROJECT| 20. | 4. | RECRUITMENT AND SELECTION| 21. | 5. | METHODOLOGY| 35. | 6. | DATA ANALYSIS AND INTERPRETATION| 36. | 7| ANALYSIS AND FINDINGS| 38. | 8| CONCLUSION | 40. | 9. | SUGGESTIONS| 41. | 10. | BIBLOGRAPHY| 42. | Introduction

HDFC Standard Life Insurance Company Limited is one of India’s leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India’s leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72. 43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26. 00% of equity in the joint venture, while the rest is held by others. HDFC Limited HDFC Limited, India’s premier housing finance institution has assisted more than 3. million Families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 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 December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9, 00,000 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, and Bangladesh in the setting up of housing finance companies. Standard Life Group (Standard Life and its subsidiaries) The Standard Life Group has been looking after the financial needs of customers for over 180 years.

It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health- care needs. Its investment manager currently administers ? 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor’s as ‘strong’ with a rating of A+ and as ‘good’ with a rating of A1 by Moody’s. Standard Life was awarded the ‘Best Pension Provider’ in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pension’s provider at the Financial Adviser Service Awards for the last 10 years running.

The ‘5 Star’ accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the ‘Best Flexible Mortgage Lender’ at the Mortgage Magazine Awards in 2006. Vision & Values 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 OBJECTIVES OF THE PROJECT HDFC Standard Life insurance is India’s premier insurance enabling company. HDFC Standard Life insurance is the one-stop-shop for requirements of services in the areas of insurance, optimum investment, financial coverage and losses, mortality benefit, and health option etc. This is backed by HDFC Standard life insurance service support infrastructure – the widest in the country. The objective of the project was to understand how financial consultant play important role for insurance company like HDFC STANDARD LIFE.

The main OBJECTIVE of the project is to understand the RECRUITMENT AND SELECTION of financial consultant more effectively and efficiently, because financial consultant play most important role in business of insurance. The data gave knowledge about customer satisfaction, loyalty & their feel about the HDFC Standard Life Insurance. Recruitment was conducted using questionnaire. The 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. Associate Companies HDFC LIMITED HDFC BANK HDFC MUTUAL FUND HDFC SALES HDFC ERGO General Insurance Other Companies • HDFC Trustee Company Ltd. • GRUH Finance Ltd. • HDFC Developers Ltd. • HDFC Property Ventures Ltd. • HDFC Ventures Trustee Company Ltd. PROUCT RANGE At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees.

This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products.

These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Type of products (1) Protection A. Term assurance plan B. Loan cover term assurance plan A) Term assurance plan:- Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract.

One can choose the lump sum that would replace the income lost to one’s family in the unfortunate event of one’s death. Since this no-participating plan is pure risk cover plan, no benefits are payable on the survival to the end of the term of the policy. B) Loan cover term assurance plan:- This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule.

Since this is a non-participating, risk is there, no benefits are payable on survival to the end of the term of the policy. (2) Investment:- (A) Single premium whole of life:- Single Premium Whole of Life Plan is well suited to meet your long term investment needs. This participating (with profit) plan offers you the following benefits: (B) A sound investment: Your money will be invested in our ‘with profit fund’. The fund aims to provide secure and stable long term growth. Normally, we declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary.

In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. You have to pay a single premium and the policy will pay you a lump sum amount. (C) Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of the 10th, 15th, 20th, and subsequent five-year anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease. (3) Pension plan A. Personal pension plan B. Unit linked personal pension plan A) Personal pension plan:-

This participating plan is basically a saving contract, which is designed to provide an income for life from retirement. It does this by providing a lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternately, if it is permitted by the prevailing regulation, the national lump sum can be used to buy an annuity with any other insurance company B) Unit linked personal pension plan:-

The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On investing the vale of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000. (4) Saving A. Unit linked endowment plan B. Money back C. Endowment plan D. Unit linked youngster plan A) Unit linked endowment plan:-

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum amount on the maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against common critical illness, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the value of your units and your selected basic sum assured.

B) Money back:- It is a participating (with profits) insurance plan that offers the features listed below: i) Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of policy. ii)On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid is provided. In case of the unfortunate death of the life assuror within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts.

C) Endowment plan:- It is a participating (with profits) insurance plan that offers the following features: i)It provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. ii) It provides a lump sum payment to the life assures on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions. D) Unit linked youngster plan:- HDFC Unit linked Young Star plan is designed to provide a lump sum to the child at maturity.

It also provides financial security to the child in his future, even in case of the insured parent’s unfortunate death during the policy term. The Unit linked Young Star plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit price. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity.

Following a valid death or critical illness claim, we will pay the future premiums (at the level originally chosen at inception) into your policy, as and when they would have fallen due. LIST OF MAJOR COMPETITORS 1. Aviva Life Insurance 2. Bajaj Allianz 3. Birla Sun Life Insurance 4. ICICI Prudential Life Insurance 5. Kotak Mahindra Old Mutual Life Insurance Limited 6. Life Insurance Corporation of India (LIC) 7. Max New York Life Insurance 8. MetLife India Insurance 9. Reliance Life Insurance 10. SBI Life Insurance 11. ShriRam Life Insurance 12. TATA AIG Life Insurance 13. BHARTI AXA

Head Office – Edinburgh, Scotland (UK) ACHIVEMENT OF THE COMPANY * Awards and Recognition * Company of the Year-2002 * Company of the Year- 2001 * Best Personal Pension Provider-2000 * Company of the Year-1999 * Company of the Decade-1996-99 * Company of the year- 1995 * 4 star service award-1992-94 * Overall best company-1991 * 3 star service award * Standard Life has been awarded the “Raising Standards” quality mark. This shows that the Company: * Uses clear language to describe their products on key documents * Have appropriate products * Provide a quality service for the customers.

Money Marketing Awards • Company of the Year every year from 1999 to 2005 • Best Group Pension Provider every year from 1998 to 2003 • Best Personal Pension Provider every year since 1998 to 2003 • Best Life Investment Product Provider 2003 and 2004 • Gold Award in the Poster Campaign Category (Advertising) 2004 Money facts Investment, Life & Pensions Awards • Best Pension Product 2003, 2004 and 2005 • Best Pension Service 2003, 2004 and 2005 Bank hall Achievement Awards • Pension Provider of the Year 2003 and 2004 Financial Adviser Provider Awards • Overall Winner in 1999, 2000, 2001 and 2002

Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003 • Pensions Company of the Year 2004 • Individual Pensions Company of the Year 2004 • Group Pensions Provider of the Year 2004 • Health Insurance Company of the Year 2004 Financial Adviser Service Awards • Company of the Year every year from 1997 to 2001 • 5 Star Life and Pensions Provider every year from 1996 to 2004 • 5 Star Investment Provider every year from 1996 to 2002 and 2004 SWOT Analysis of the HDFC Standard Life Insurance Company STRENGTH 1. HDFC has one of the highest brand recalls of around 80% (source: AC Neilson ORG MARG). 2.

HDFC has different types of training methods for their FC’s, Agents or Advisor. For Example Disha training, IRDA training, Basic training and induction, Advanced training. 3. Financial Expertise. 4. Range of solutions. 5. Having good network. 6. One of the most aggressive marketing strategies. 7. Training provided to all people associated with the bank provides services like checking the plan or policies online. 8. Free switching options online informing customers about the performance of their investment by sending monthly reports and statements 9. Have around 145000 financial advisor WEAKNESS 1.

They are unable to target rural area as compare to LIC. 2. Poor awareness for new products in consumers Poor Distribution network. 3. Negligence to customers after the investment is sold. 4. Very Huge Premium of policies compared to major rival LIC. 5. Target Upper class people only. 6. All Brochures are in English only. 7. Sometimes right advice is not given to the customers. 8. The full charges are not revealed to the customers OPPORTUNITIES In India still there is a big market for insurance field. 1. 75% of Indian market is still untapped. 2. Attract more people by providing more customer centric products. . Strong brand of the bank helps to boost sales in market. 4. No. 1 in adapting new technologies like online search etc. 5. Tie up with brokers also having a large data base of the customers. 6. Getting leads from the branch members. THREATS 1. Many private players are coming into the market. 2. Some brands in the market gives there product with more features. 3.. LIC, ICICI & Bajaj Allianz is the major competitor with better network. 4. Threats from other banks selling same types of investments. 5. Change in the policies of IRDA. 6. Change in the mentality of people 7. Fear of the market to crash down. . Employee attrition. FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION MARKETING DETAILS Marketing generally refers as the task of creating, promoting and delivering goods And services to consumers and business. Marketing managers seeks to influence the Level of timing and composition of demand to meet the organization’s objectives. Marketing people are involved in 10types of entities: goods, services, experiences, Events, persons, places, properties, organization, information and ideas. The Marketing concept rests on four pillars: target market, customer needs, integrated Marketing and profitability. Marketing is defined as a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others” The basic four P’s of marketing are PRODUCT, PRICE, PLACE and PROMOTION. The last few years have seen an increased attention to mutual funds across all genres of investors’ big or small, individuals or corporate. FINANCIAL DETAILS IMPORTANCE OF FINANCE Finance is regarded as the life blood of a business enterprise. This is because in the Modern money oriented economy. Finance is the one of the basic foundation of all Kind of electronic activity.

It is the master key which provides access to the entire Source for being employed in manufacturing and merchandizing activities. It has Rightly been said the business needs money to make more money. However it is also true that money begets more money, only when it is properly managed. Hence, Efficient management of every business enterprise is closely linked with efficient Management of its finance. MEANING OF BUSINESS FINANCE In general finance may be defined as the provision of money at the time it is wanted. However, as a management function it has a special meaning.

Finance function may Be defined as the procurement of funds and their effective utilization. Some of the Authoritative definitions are as follows: “Business finance is that business activity which is concerned with the acquisition and Conservation of capital funds in meeting financial needs and overall objectives of far Business enterprise. ” “Business finance can broadly be defined as the activity concerned with planning Rising, controlling and administrating of the funds used in the business. ” RECRUITMENT AND SELECTION Recruitment is the process of attracting prospective candidates who are likely to get selected.

Recruitment process starts with the drafting of advertisement for the 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. RECRUITMENT: Recruitment is concerned with 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 expansion plans in near future then these requirements should 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 same. Recruitment is just one step in the process of employment. 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 the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. RECRUITMENT POLICY : It specifies the objective of recruitment and provides a framework for the implementation of the recruitment programme. A recruitment policy may involve 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) Organizational objectives : Both short term and long term organizational objectives must be taken into consideration.

Identification of recruitment needs : The recruiters should prepare profiles for each category of workers and accordingly work out the main specifications, decide the sections, departments or branches where they should be placed. 2) Preferred sources of recruitment : The sources of recruitment should be identified properly. 3) Criteria of selection and preferences : Selection and preferences should be based on conscious thought and se- rious deliberation. 4) Monetary aspects : The cost of recruitment and financial implications of the same have to be kept in mind also. PRE-REQUISITES OF GOOD RECRUITMENT POLICY : ) 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 should provide employees with job security and continuous employment. 4) It should integrate organizational needs and employee needs. 5) It should match the qualities of the employees with the requirements of the work for which they are employed. 6) It should highlight the necessity of establishing job analysis. FACTORS AFFECTING RECRUITMENT : Every organization, big or small has to engage in recruitment of persons, recruitment has two aspects- ) 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 organization can recruit successfully without taking 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: It should provide employees with job security and continuous employment. It should integrate organizational needs and employee needs. It should match the qualities of the employees with the requirements of the work for which they are employed. It should highlight the necessity of establishing job analysis. 3) The Technological Factors – New technology have created new jobs and existing jobs have undergone rapid changes. Several old jobs have disappeared from the scene. ) The Legal Factors – The different legislative policies governing child labour, night shifts, bonded labour etc. have brought 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) Identifying the prospective employees with required characteristics. 4) Developing the techniques to attract the desired candidates. ) The next stage in the process is to stimulate as many candidates as possible. 6) Evaluating the effectiveness of recruitment process. PROCESS OF RECRUITMENT COMPANY ADOPTS : Personnel Planning Job Analysis Recruitment Planning Searching Evaluation and control Strategy Development Selection Screening SOURCES OF RECRUITMENT – Before an organization actively begins to recruit 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 is one of the important sources of recruitment. The employees already working in the organization may be more suitable for higher jobs than those recruited outside. Internal sources consist of the following : 1) Present Employees : Promotions and transfers among the present employees can be a good source of internal recruitment. 2) Employee Referrals : In an organization with a large number of employees referrals can provide quite a large pool of potential organizational members. ) Former Employee : These are another internal source 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 by mail. External Sources : These are as follows – 1. Advertisement 2. Professional Organization 3. Data Bank 4. Walk in 5. Recruiting Agencies 6. Competitors 7. Displaced Persons 8. E-recruitment SELECTION OF FINANCIAL CONSULTANTS- 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 person who have good social contact.

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 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. 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 programme. 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 candidates 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 at HDFC SLIC: Job analysis ?Recruitment ?Application form ?Written examination ?Preliminary interview ?Tests ?Medical examination ?Reference checks ?Line manager s decision IN DETAIL EXPLANATION: (1)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. (2) HUMAN RESOURCE PLAN: Every company plans for the required number of and kind of employees for a future date. This is the basis for recruitment function. (3)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. (4)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 workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate. 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. articipants 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: It 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. The selection panel, based on its observation, judges the candidates 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. (5)Test: Tests are classified into six classes, each class is again divided into different types of tests. They are: (a)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). (b)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. c)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. (d)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. (e)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. f)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 multidimensionaltesting 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. (6)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. (7)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. (8)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 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 soon. Further, information regarding candidate s regularity at work, character, progress etc. an be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate s performance, character and behavior. 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. 9) 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 and personnel managers should be established to take proper decisions. (10)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.

EMPLOYMENT: The company may modify the terms and conditions of employment as requested by the candidate. The company employs those candidates who accept the job offer with or with out 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. METHODOLOGY Generally two types are data are used for any research, which are very important for the research, these can be discussed as – 1. Primary Data 2. Secondary Data Primary Data –

Primary data are the data which are original in character, obtained for the first time, being collected from the respondents, either through questionnaire or through personal interviews. This can be collected by various methods like •Surveys •Observation •Experimentation •Measurements •Personal interview •Telephonic interview •Questionnaires But my chosen way of collecting data was through Personal Interview and Questionnaires. Secondary data – Secondary data is the data, which has been collected by someone else for some other purpose and is used by the researcher in his research for study.

Various sources of secondary data are Catalogues, Brochures, Magazines and Websites, Television etc. In this project I made use secondary data for gaining more and more about the company, its products and various benefits an advisors will be getting. For acquiring this knowledge I have studied secondary sources like company websites, brochures, paper presentations etc. Data Analysis , Results and Interpretation Question 1. You belong to which age group? Age Group| 18-25| 26-40| 40| Respondent %| 17| 51| 32| Interpretation The objective of the question is to know the age group from which respondent are. 51% of the respondents are from age group of 26-40 years * 32% of the respondents are from age group of 40 years and above * 17% of the respondents are from age group of 18-25 years. Question 2 What is your Occupation? Occupation| Frequency %| Business| 41| Service| 43| Profession| 16| Interpretation: 43% of the respondent is belonging to service class, 16% of them is professional and 41% is having their own business. Question. 3 What is your perception about insurance sector? Perception about insurance sector Perception| Frequency %| Hard and Profitable| 49|

Hard but not rewarding| 22| Smooth and Rewarding| 8| No Idea| 21| Interpretation The purpose of asking this question is to know the perception of people towards insurance sector. What thinking they have about the industry as career opportunity. 49% of the people think that the sector is hard and profitable, 22% think that the sector is hard but not rewarding, 21% have no idea about the sector, 8% think that it is smooth and rewarding. Question. 4 Do you know about HDFC SLIC recruitment policies related to financial consultant? Awareness about hdfc slic

REPLY| Frequency %| Yes| 12| No| 88| Interpretation The purpose of asking this question is to know the awareness among people about the recruitment policy of HDFC SLIC related to financial consultant. The survey shows that only 12% of the respondents know about the policy rest 88% are unaware about the opportunity of becoming FC of the company. They are also unaware about the benefit of doing this job as a part time. Question. 5 Will you be interested to become financial consultant? Interested to join| Frequency %| Yes| 9| NO| 91| Interpretation

The purpose to ask this question is to know the willingness among people to become FC for the company. 91 % people said that they don’t have interest to become financial consultant for the company. Only 9% of the people show their interest to become FC for the company. Question. 6. 6 If No what is the reason of not joining HDFC STANDARD LIFE? Reason for not joining HDFC SLIC Frequency Percent 1. No time 24 24. 0% 2. Lack of interest 24 24. 0% 3. Satisfied with current job 37 37. 0% 4. Other 8 8. 0% Interpretation The purpose of asking this question is to know the reason why they don’t want to join HDFC SLIC as FC. 7% of the respondent said that they are satisfied with their current job and 24% said that they don’t have time or have lack of interest to do this job. Question 6. 7 Do you hold any license of any insurance company? License of any insurance company Frequency Percent Yes 11 11. 0% No 89 89. 0% Total 100 100. 0% Interpretation: The objective of asking this question is to know if any respondent have insurance agency, which help company to know its rival. 11% of the respondent have insurance agency out of which 64% have agency of LIC. 6. 2 FINDINGS People are very less aware about the recruitment policy of HDFC SLIC related to FC. • People are less interested to join HDFC SLIC as FC. • The respondent between age group 26-40 years gives the reason of not joining HDFC SLIC is they are satisfied with their current job. • The respondent between 18-25 years has perception that although it is a profitable venture, but selling insurance policy is very hard, in term of convincing people. • Overall the perception of respondent for insurance sector as career opportunity is hard and profitable. •

Out of 100 respondent 11 respondent has already have agency of life insurance company, out of which 7 have agency of LIC. • 23% respondent said that they will prefer to become advisor for LIC as compare to other private company. 7. CONCLUSIONS HDFC Standard Life, the insurance arm of HDFC is expected to go on flow. Promoted by HDFC & Standard Life, already has good number of employees on board and is recruiting Financial Consultants heavily to take the headcount to many more. It is on the edge of increasing its client through its attractive schemes and offer.

The project opportunities provided was market segmentation and identifying prospective clients in potential geographical location and for recruiting them as financial consultant so to explore new Business Opportunity. Through this project, it could be concluded that people are not much aware about the various benefit of being Financial Consultant that are currently prevailing in the insurance industry. Although some of them show interest in becoming FC for the company after knowing about its various benefits like good commission structure, gifts and trips within the country or abroad, felicitations of star performer program etc.

So company should make people aware about the benefits they are giving to FC, to attract the prospect and meet their expectation to retain them according to their performance. 8. Limitation of the Project Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are:- • The project was constrained by time limit of two months. • Mindset of people may very depending upon their age, gender, income etc. • Getting appointment from the concern person was very difficult. • People mind set about the survey was an obstacle in acquiring complete information & positive interaction. Respondents were very busy in their schedule. So it was very time taken in every Questionnaire response by them. 9. RECOMMENDATIONS • The company should advertise its recruitment policy related to FC in the newspaper specially the in employment newspaper. • The company should promote FC as employment opportunity among the people who is not much educated especially in rural area. • The company should revised its eligibility criteria that they have made for FC they should target the unemployed youth as FC for the company. • Free life cover for every active Financial Consultant. •

Company should organize the program in the society, so that people will be aware about the company • Customers should be made aware of the brand name of Insurance Company through regular advertisement. Which in turn help FC to sell policies. Abbreviations HDFC- Housing development and Finance Corporation SLIC- Standard Life Insurance Company IRDA- Insurance Regulatory and Development Authority FC- Financial Consultant IAOI- Institute of Actuaries of India Bibliography Books References: ?Market Research Textbook by G. C. Berry ?Marketing Management by Philip Kotler Websites: ?www. irda. om ?www. hdfcinsurance. com ?www. wikipedia. com Report: ?Annual report of IRDA 2007-08 Question. 6. 6 If No what is the reason of not joining HDFC STANDARD LIFE? Reason for not joining HDFC SLIC Frequency Percent 1. No time 24 24. 0% 2. Lack of interest 24 24. 0% 3. Satisfied with current job 37 37. 0% 4. Other 8 8. 0% Interpretation The purpose of asking this question is to know the reason why they don’t want to join HDFC SLIC as FC. 37% of the respondent said that they are satisfied with their current job and 24% said that they don’t have time or have lack of interest to do this job.

Question 6. 7 Do you hold any license of any insurance company? License of any insurance company Frequency Percent Yes 11 11. 0% No 89 89. 0% Total 100 100. 0% Interpretation: The objective of asking this question is to know if any respondent have insurance agency, which help company to know its rival. 11% of the respondent have insurance agency out of which 64% have agency of LIC. 6. 2 FINDINGS • People are very less aware about the recruitment policy of HDFC SLIC related to FC. • People are less interested to join HDFC SLIC as FC. •

The respondent between age group 26-40 years gives the reason of not joining HDFC SLIC is they are satisfied with their current job. • The respondent between 18-25 years has perception that although it is a profitable venture, but selling insurance policy is very hard, in term of convincing people. • Overall the perception of respondent for insurance sector as career opportunity is hard and profitable. • Out of 100 respondent 11 respondent has already have agency of life insurance company, out of which 7 have agency of LIC. • 23% respondent said that they will prefer to become advisor for LIC as compare to other private company. . CONCLUSIONS HDFC Standard Life, the insurance arm of HDFC is expected to go on flow. Promoted by HDFC & Standard Life, already has good number of employees on board and is recruiting Financial Consultants heavily to take the headcount to many more. It is on the edge of increasing its client through its attractive schemes and offer. The project opportunities provided was market segmentation and identifying prospective clients in potential geographical location and for recruiting them as financial consultant so to explore new Business Opportunity.

Through this project, it could be concluded that people are not much aware about the various benefit of being Financial Consultant that are currently prevailing in the insurance industry. Although some of them show interest in becoming FC for the company after knowing about its various benefits like good commission structure, gifts and trips within the country or abroad, felicitations of star performer program etc. So company should make people aware about the benefits they are giving to FC, to attract the prospect and meet their expectation to retain them according to their performance. . Limitation of the Project Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are:- • The project was constrained by time limit of two months. • Mindset of people may very depending upon their age, gender, income etc. • Getting appointment from the concern person was very difficult. • People mind set about the survey was an obstacle in acquiring complete information & positive interaction. • Respondents were very busy in their schedule. So it was very time taken in every Questionnaire response by them. . RECOMMENDATIONS • The company should advertise its recruitment policy related to FC in the newspaper specially the in employment newspaper. • The company should promote FC as employment opportunity among the people who is not much educated especially in rural area. • The company should revised its eligibility criteria that they have made for FC they should target the unemployed youth as FC for the company. • Free life cover for every active Financial Consultant. • Company should organize the program in the society, so that people will be aware about the company •

Customers should be made aware of the brand name of Insurance Company through regular advertisement. Which in turn help FC to sell policies. Abbreviations HDFC- Housing development and Finance Corporation SLIC- Standard Life Insurance Company IRDA- Insurance Regulatory and Development Authority FC- Financial Consultant IAOI- Institute of Actuaries of India Bibliography Books References: ?Market Research Textbook by G. C. Berry ?Marketing Management by Philip Kotler Websites: ?www. irda. com ?www. hdfcinsurance. com ?www. wikipedia. com Report: ?Annual report of IRDA 2007-08

ANALYSIS AND FINDINGS From the analyzed data the following is inferred – ?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. ?Research shows that the Financial Advisors generally belong to the age of 30- 50 years ?It is found that the company provides both types of training and mainly 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 HDFC STANDARD LIFE for the extra income. Most of the recruited people continue working as a Financial Advisor. LIMITATIONS 1. This sample size is limited to 100 respondents. 2. Biased reply of the respondents like giving wrong information should be factored in. 3. Non availability of the data or the relevant information from the respondent. 4. Sometimes it happens that the respondent was busy so as to get the information it becomes difficult. 5. 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 results.

CONCLUSION 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. lacs 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 4. The study of the profile of the advisor is depending on their industry background i. e. their work experience and the age wise distribution. 5. The level of awareness of the prospects about the private insurance company has increased because of the heavy advertising and marketing by the companies over the period of time. 6.

It is 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 thing. 7. Most of the prospects wanted 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. SUGGESTIONS Based on the findings in the Research following suggestions are made – 1. Finding new prospects is like breathing, so Unit Manager should be in regular touch with the market so that he will 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. 3. Branch Manager should take the feedback from the existing advisors so that he can easily understand the advisors problem as well s he can recommend new changes. 4. The company should concentrate on the rural part so that they can compete with LIC India, and can generate some business from 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. 6. Unit Manager should meet regularly with the existing advisors so that he can find out their problems & also take their suggestions. BIBLIOGRPHAY WEBSITES : www. hdfcslic. com www. insuranceguide. com www. economictimes. com BOOKS : 1) HUMAN RESOURCE MANAGEMENT 2) PERSONNEL MANAGEMENT (3)JOURNALS & ARTICLES : IRDA JOURNAL

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