A

Project Report
On
Recruitment And Selection
of

HDFC Standard Life Insurance Company

In Partial Fulfillment of B.B.A (Bachelor of Business Administration)

Programme of G.G.S.I.P.University.

Submitted by:
SELESH GUPTA
0921221707

DELHI COLLEGE OF ADVANCED STUDIES

B-7, Shanker Garden, Vikaspuri
New Delhi-110018
 Student declaration

I declare that the project entitled “PROJECT ON RECUIRTMENT AND

SELECTION 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.

Selesh gupta

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 ACKNOWLEDGMENT

I was actively involved with HDFC Standard life insurance

company ltd JAIPUR, for a period of 60 Days, and I came across a
lot of people who put in their time and effort towards acclimatizing
me to the workings of their organization.

Firstly I would like to thanks Mr. MANISH SHARMA is the

BRANCH MANAGER of the HDFC Standard Life Insurance Company
Ltd. for giving me opportunity to work with this organization.

I would like thanks Mr.CHANDAN JYOTI without whose support,

this project would not have been possible. Heartiest thanks for his
constant support and motivation.

My gratitude to everyone there at HDFC Standard Life Company

who has helped me directly or indirectly in the completion of this project.

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 PREFACE

I, student of SHEKHAWATI COLLEGE affiliated to GURU

JUMBHESWAR 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 “Recruitment and Selection of 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.

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 EXECUTIVE SUMMARY

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. So to understand the process of Recruitment of financial

consultant in HDFC STANDARD LIFE .

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 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. Market

in Pune city was targeted. Various areas in city were selected. 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.

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 ORGANISATION OVERVIEW

HISTORY

MAN WITH A MISSION

If ever there was a man with a mission it wasHasmukhbhai

Parikh, Founder and Chairman-Emeritus of HDFC Group who left this earthly
abode on November18, 1994. Born in a traditional banking family in
Surat,Gujurat, Mr. Parikh started his financial career at Harkisandass
Lukhmidass – a leading stock broking firm. The firm closed down in the late
seventies, but, long Before that, he went on to become a towering figure on
the Indian financial scene. In 1956 he began his lifelong financial affair with
the Economic world, as General Manager of the newly-formed Industrial
Credit and Investment Corporation of India(ICICI). He rose to become

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Chairman and continued so till his retirement in 1972.At the ripe age of 60,
Hasmukhbhai started his second dynamic life, even more Illustrious than his
first. His vision for mortgage finance for housing gave birth to the

Housing Development Finance Corporation –It was a trend-setter for

housing finance in the Whole Asian continent. He was also a writer in his
own right. There are over 200 published articles by him...? In 1992, the
Government of India honored
him with the Padma Bhushan Award.

London School of Economics & Political Science conferred on him an

Honorary
Fellowship.He was one of the Founder Members of the Centre for
Advancement of Philanthropy, and it’s Chairman till 1993. He took active
interest in the Bombay Community Public Trust, designed specifically to
serve the needs of the city’s underprivileged citizens. When Mr. Deepak
Parikh took over as Chairman from Hasmukhbhai, he said: “Taking over from
H.T. Parikh is a formidable task; his vision… brought about not Only an
institution, but an entire concept which has proved itself to be of lasting
Importance.”

The Standard Life Assurance Company ("Standard Life") was

established in 1825 and the first Standard Life Assurance Company Act was
passed by Parliament in 1832. Standard Life was reincorporated as a mutual
assurance company in 1925.

The Standard Life group originally operated only through branches or

8
agencies of the mutual company in the United Kingdom and certain other
countries.

Its Canadian branch was founded in 1833 and its Irish operations
in 1838. This largely remained the structure of the group until 1996, when it
opened a branch in Frankfurt, Germany with the aim of exporting its UK life
assurance and pensions operating model to capitalise on the opportunities
presented by EC Directive 92/96/EEC (the “Third Life Directive”) and offer a
product range in that market with

In the 1990s, the group also sought to diversify its operations into
areas which complemented its core life assurance and pensions business,
with the intention of positioning itself as a broad range financial services
provider. Banking and investment.

The group set up Standard Life Bank, its UK mortgage and retail
savings banking subsidiary, in 1998 and Standard Life Investments, which
had previously been the in-house investment management unit of the
group’s life assurance and pensions business, was separated into a distinct
legal entity in the same year, with the aim of establishing it as an
independent investment management business providing services to both
the group and third party retail and institutional clients. The group acquired
Prime Health Limited (subsequently renamed Standard Life Healthcare) in
the United Kingdom in 2000. Standard Life Healthcare expanded in March
2006with the acquisition of the PMI business of FirstAssist.

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Standard Life Asia Limited/Joint ventures –

The group’s Hong Kong subsidiary, Standard Life Asia Limited

(“SL Asia”), was incorporated in 1999 as a joint venture and became a

wholly-owned subsidiary of Standard Life in 2002. The group’s operations in

Hong Kong were established to give the group a presence in the Far East

from which it could expand into China. The group’s joint ventures in India

with Housing Development Finance Corporation Limited (“HDFC”) were

incorporated in 2000 (in relation to the life assurance and pensions joint

venture) and 2003 (in relation to the investment management joint venture).

The group’s joint venture in China with Tianjin Economic Development

Standard Life International Limited –

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 The group also incorporated Standard Life International Limited

(“SLIL”) in 2005 for the purposes of providing the group with an offshore

vehicle, based in Ireland, through which it could sell tax-efficient investment

products into the United Kingdom. Sales of these products commenced in

2006.

Service company -

Following the group’s strategic review in 2004, the group

established a service company structure for the provision of central

corporate services to the group’s business units. Standard Life Employee

Services Limited (“SLESL”) supplies a wide range of central services to the

rest of the group, including IT, facilities, legal and human resources services,

and employs staff working in the group’s UK and Irish operations (other than

SLI, SLB and SLH, which employ their staff directly). This service company

structure was created to enable Standard Life to comply with regulatory

restrictions on the provision of non-insurance services and to exploit group-

wide synergies.

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 Company prospects

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.

Our Parentage

HDFC Limited

HDFC Limited, India’s premier housing finance institution has

assisted more than 3.3 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

12
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 plc 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.

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 Our Vision & Values

Our Vision

'The most successful and admired life insurance company, which

means that we are the most trusted company, the easiest to deal with, offer
the best value for money, and set the standards in the industry'.

'The most obvious choice for all'.

Our Values

Values that we observe while we work:

• Integrity

• Innovation

• Customer centric

• People Care “One for all and all for one”

• Team work

• Joy and Simplicity

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 Profile of the Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is

also the Executive Chairman of Housing Development Finance
Corporation Limited (HDFC Limited). He joined HDFC Limited
in a senior management position in 1978. He was inducted as a
whole-time director of HDFC Limited in 1985 and was
appointed as its Executive Chairman in 1993. He is the Chief
Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of
the Institute of Chartered Accountants (England & Wales).

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Sir Alexander M. Crombie joined the Board of Directors of the
Company in April, 2002. He has been with the Standard Life
Group for 34 years holding various senior management
positions. He was appointed as the Group Chief Executive of
the Standard Life Group in March 2004. Sir Crombie is a fellow
of the Faculty of Actuaries in Scotland.

Mr. Keki M. Mistry joined the Board of Directors of the

Company in December, 2000. He is currently the Managing
Director of HDFC Limited. He joined HDFC Limited in 1981 and
became an Executive Director in 1993. He was appointed as its
Managing Director in November, 2000. Mr. Mistry is a Fellow of
the Institute of Chartered Accountants of India and a member
of the Michigan Association of Certified Public Accountants.

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Ms. Marcia D. Campbell is currently the Group Operations
Director in the Standard Life group and is responsible for Group
Operations, Asia Pacific Development, Strategy & Planning,
Corporate Responsibility and Shared Services Centre. Ms.
Campbell joined the Board of Directors in November 2005.

Ms. Renu S. Karnad is the Executive director of HDFC

Limited, is a graduate in law and holds a Master's degree in
economics from Delhi University. She has been employed with
HDFC Limited since 1978 and was appointed as the Executive
Director in 2000. She is responsible for overseeing all aspects
of lending operations of HDFC Limited.

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Mr. Norman K. Skeoch is currently the Chief Executive in
Standard Life Investments Limited and is responsible for
overseeing Investment Process & Chief Executive Officer
Function. Prior to this, Mr. Skeoch was working with M/s.
James Capel & Co. holding the positions of UK Economist,
Chief Economist, Executive Director, Director of Controls and
Strategy HSBS Securities and Managing Director International
Equities. He was also responsible for Economic and Investment
Strategy research produced on a worldwide basis. Mr. Skeoch
joined the Board of Directors in November 2005.

Mr. Gautam R. Divan is a practising Chartered Accountant and

is a Fellow of the Institute of Chartered Accountants of India.
Mr. Divan was the Former Chairman and Managing Committee
Member of Midsnell Group International, an International
Association of Independent Accounting Firms and has authored
several papers of professional interest. Mr. Divan has wide
experience in auditing accounts of large public limited
companies and nationalised banks, financial and taxation
planning of individuals and limited companies and also has

18
substantial experience in structuring overseas investments to
and from India.

Associate Companies

HDFC LIMITED

HDFC BANK

HDFC MUTUAL FUND

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 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.

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 PROUCT RANGE & VARIETY

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

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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.

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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

 Single premium whole of life

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:

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

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 have to pay a single premium and the policy will pay you a lump sum
amount.

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 national 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

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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

25
 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.

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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.

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 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 COMPITITOIRS

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

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 8. MetLife India Insurance

9. Reliance Life Insurance

10. SBI Life Insurance

11. ShriRam Life Insurance

12. TATA AIG Life Insurance

13. BHARTI AXA

ACHIVEMENT OF THE COMPANY

Best Companies to Work for in India in 2010

HDFC Standard Life has been adjudged one of the Best

Companies to Work for in India in 2010. The company participated in the
Great Places to Work study for the first time and ranked first in the insurance
category. It ranked 34th on the Top 50 Best Companies to Work for, in India
2010 list. The company was also awarded for its unique employee initiative -
Mission “in-Genius national quiz. The study has shown that HDFC Standard
Life conscientiously develops employee talent programmes to keep
engaging and motivating its employees. The company provides some unique

29
platforms such as 'Mission in Genius' national quiz. The management is
accessible to all at all times and sincerely seeks feedback from its
employees through programmes such as 'Sparsh', the study said.

'YoungStar Super' Voted 'Product of the Year 2010'

HDFC Standard Life Insurance YoungStar Super has been voted

Product of the Year 2010 in the 'Insurance' category by more than
30,000 consumers nationwide across 36 markets. YoungStar
Super is an unit linked Children Plan with unique benefits such as
bumper additions, double and triple benefits, attractive allocations
rates, and seven different funds.

Received CIO 'The Ingenius 100 2009' Award

HDFC Standard Life has received the CIO ˜The Ingenious 100 -
2009 Award, for ATLAS (Agency Training Licensing and Servicing System).
Additionally, the company has received the CIO 100 ˜Security Award 2009
for pioneering LANDesk Management and Security Suite security
implementation and taking its security to a higher level of technological
excellence.

Received Diamond EDGE Award 2009

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 HDFC Standard Life has received the Diamond EDGE Award
2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises
Driving Growth and Excellence (using IT) is an initiative by the ,Network
Computing magazine to identify, recognise, and honour end-user companies
in India that have demonstrated the best use of technology to solve a
business problem, improve business competitiveness, and deliver
quantifiable ROI to stakeholders.

Received CIO Bold 100 and CIO Security Awards 2008

HDFC Standard Life has received the 2008 CIO Bold 100 Award.
This annual award recognizes organizations that exemplify the highest level
of operational and strategic excellence in information technology. This year's
award theme, The Bold 100, recognized those executives and organizations
that embraced great risk for the sake of great reward.

Received PCQuest Best IT Implementation Award 2008

HDFC Standard Life received the PCQuest Best IT Implementation

Award 2008 for Consultant Corner, the applications for its financial

31
consultants, providing centralized control over a vast geographical spread for
key business units such as inventory, training, licensing, etc. about the
Consultant Cornera tool in the HDFCSL's in News Section.

Silver Abby at Goafest 2008

HDFC Standard Life's radio spot for Pension Plans won a Silver
Abby in the radio writing craft category at the Goafest 2008 organised by the
Advertising Agencies Association of India (AAAI). The radio commercial
˜Pata nahin chala touched several changes in life in the blink of an eye
through an old man perspective. The objective was drive awareness and ask
people to invest in a pension plan to live life to the fullest even after
retirement, without compromising on one self-respect

Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard

Life, one of the leading private insurance companies in India, has Top
Television Advertisement survey conducted, for February 2008. HDFC
Standard Life Unit Linked Savings Plan advertisement was ranked 4th in
terms of a combined score of ad awareness and brand recall and 3rd in
terms of ad diagnostic scores (likeability, enjoyment, believability, and claim).
The respondents were between 18 and 40 years. Minta exclusive report,
New voices in a makeover outlines the survey in detail.

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 Deepak Satwalekar Awarded Gold Standard Award 2007

Mr Deepak M Satwalekar, Managing Director and CEO, HDFC

Standard Life, received the QIMPRO Gold Standard Award 2007 in the
business category at the 18th annual Qimpro Awards function. The award
celebrates excellence in individual performance and highlights the quality
achievements of extraordinary individuals in an era of global competition and
expectations.

Industry Profile

INSURANCE

Insurance is a legal contract that protects people from the financial

costs that result from loss of life, loss of health, or property damage.
Insurance provides a means for individuals and societies to cope with some
of the risks faced in everyday life. People purchase contracts of insurance
called policies from a variety of insurance called policies, from a variety of
insurance organizations.

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 Insurance is conceived as a method of saving of these losses ,
embodying the principle of co-operation existed in the early civilization .
There is evidence that during the Aryan civilization , loss of profits in
industry was insured by the village co-operative in India .

Almost everyone living in modern , industrialized countries buys

insurance for instance laws in most states require people who own a car to
buy insurance before driving it on public roads . lenders require anyone who
finances the purchase of home or car with borrowed money to insure that
property .business partners take out life insurance on each other to make
sure that business will succeed even if one of the partner dies.

Two types of insurance:

Life insurance:

Life insurance is a contract for payment of a sum money to the

person assured on the happening of the event insured against . usually the
contract also provides for the payment of premium periodically to the
corporation by the assured.

General insurance:

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 General insurance includes many areas of insurance like
maraine, motor, eng, health, fire etc the contract provides for the payment of
an amount on the happening of some contingency .These types of contracts
are annual in nature.

A. Origin and Development of the Industry

Historians believe that insurance first developed in sydney by

babylonia . The merchants and traders of these transferred and pooled their
money to protect themselves and pirates.

In the 18th century BC, Babylonian king samurai developed a

code a law, known as the code of specific rules governing the practices of
early risk sharing activities . Insurance also developed during the
1700s in the North American colonies. In 1730 Benjamin frank contributed
for the insurances of houses from loss by fire.

Early development of insurance was unorganized . it was mainly

insuring commercial risks. The insurance in human life started in England in
1538 AD for term assurance for 12 months ,which was issued for the first
time . in 1705 amicable society started paying assurance on death a term

35
carried on unto 1757. in 1762 equitable society was the first co. to start
charging premium on scientific basis.

In INDIA, the references to insurance history relates to the East

India Co when some policies were issued on the life of brusiers in foreign
currency.

In 1870-Bombay mutual fund insurance ltd

In 1874-Oriental Govt security life assurance Co ltd

In 1896-Bart insurance co. and 1897 empire of India

In 1905-no of insurance company life Hindustan co-op united India,

Bombay life national-Asian were setup up during the above period.

After 2nd world war several new companies were established

,most important being new assurance co. others were Jupiter ,lame
,Andhra ,industrial metropolation and new asiastic.

After 1st world war the peace of industrlization was accelarted in

India. the swedish movement had already gathered momentum and
nationalism in the twenties,

Offices began to take due share of the country business .it

continuously progressed and there seemed to be steady rise in per capita
insurance in the country.

36
 The government started to exercise control with the passing of
insurance act, 1912. There was a marked increase in the volume of
insurance business and other form of business .in 1938 the deptt of
insurance under the authority of the supritendent of insurance was
established. This act was futher amended in 1950.before nationalization
there were 97 operatng centers almost all urban. There were 245 different
insurance companies then.

Nationalization of the insurance business in 19 jan 1956. lic act

was passed by the parliament and recived presidential assent on 18
june1956 and act came on 1 sept 1956.

Insurance benefits the society by allowing individuals to share the risks faced
by many people but it also serves the other economic and societal functions
because insurance is affordable , banks can make loans with the assurance
that the loan with the assurance is easily covered against damage.
Insurance also provides the capital that communities need to quickly rebuild
and recover economically from natural disasters.

B.Growth and Present Status of the Industry

The Indian insurance has finally opened up. The first move
towards liberalization came with Ampohra committee report in 1993. which

37
recommended the privatization of insurance .Indian stands to gain witty the
following major advantages :

• Better products with more reasonable and affordable pricing.

• Quick servicing
• Increased saving rate
• Long –term funds for infrastructure development will be available to the
country.
• Large inflows of foreign capital.

It is debated that the insurance business does not produce profit in the first
five year .
Cross subsidization is a feature of the Indian market . event the
fire portfolio which is considered profitable, cross subsidizes the other
department . tariff reductions are likely to reduce further. Insurer will have to
institute proper claims management process in order to extract proficiencies.

The government is soon to present the new model for tax saving life
insurance companies at internationally competitive advantage and sketch
their alliances accordingly.

Infect alliances related to distribution rather than to product or

technology will prove most valuable in the long run . Brokers will come into
the market for first time and there is bound to be intense competition As a
result of this in the multi channels of distribution.

38
 Since beginning of the world ,man has always felt insecurity for his
assets and even life . there is uncertainty in every aspect of life, its an old
saying that only death and tax are certain. Uncertainties in every aspect of
life is exposés to our assets to losses and consequently endless problems.
A fire in the factory may burn everything and owner only of income with
huge capital is finished but insurance will come for rescue if its taken.
Insurance does not only provide reimbursement but some suggestive
measures also to reduce the effect of hazards and losses .earthquake,
flood , riot, strike, theft, explosion etc.

Some of the common dangers to our assets. Moreover life

insurance besides providing financial assistance to the insured, these
policies provides investment opportunities and even pension plans at market
interest rate.

C. FUTURE OF THE INDUSTRY

In Indian market , the opportunity for insurance companies is

huge. The efforts of government companies have lacked sincerity , as there
is large untapped market even after 61 years of nationalization . according to
sources 30 cores people of India can afford insurance however only 8
cores of them have taken away. Life insurance in a year is collected is only
2% of GDP in India with that of 12 % in USA.

39
 Total non –life insurance premium is mere of 0.6% of GDP which is
almost negligible. on the basis of this it can be sold that there is huge scope
for insurance in India. The latest foreseen in Indian market and the success
of liberalized market in emergent economies to make this opportunity . to
avail this may international players including the world leaders have setup
their business in India form the last so many years. i.e. Hdfc-slic, Icici
Prudential life ,Max life insurance corporation , Bajaj-allianz..

40
 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.

41
 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.
3. 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.

42
 8. 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

43
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,

44
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.”

45
 RECRUITMENT AND SELECTION

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 :

46
 “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 :

47
 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 :

1) It should be in conformity with the general personnel policies.

48
 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-
1) 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

49
 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 increased emphasis on recruitment. The
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 existing jobs have
undergone rapid changes. Several old jobs have disappeared
from the scene.

4) 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.

50
 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.

PROCESS OF RECRUITMENT COMPANY ADOPTS :

Personnel Job
Planning Analysis

Recruitment
Planning

Strategy
Development

51
Screening
Searching

Evaluation Selection
and control

52
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 :

Present Employees :

Promotions and transfers among the present employees can be

a good
source of internal recruitment.

1) Employee Referrals :
In an organization with a large number of employees referrals
can provide quite a large pool of potential organizational
members.

53
 2) Former Employee :
These are another internal source of recruitment. Some retired
employees may be willing to come back to work.

3) 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

54
 RECRUITMENT PROCESS COMPANY ADOPTS

1) Internal sources
2) Advertisement
3) Consultants
4) Data banks

SELECTION OF FINANCIAL CONSULTANT

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 givencompany to ascertain whether the

55
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

56
or stages by which different types of information can be secured through
various selection techniques. At each step facts may come to light, which are
useful for comparison with the job requirement and employee specifications.
Steps in Scientific Selection Procedure:

 Job analysis
 Recruitment
 Application form
 Written examination
 Preliminary interview
 Tests
 Medical examination
 Reference checks
 Line manager s decision

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.

(B) HUMAN RESOURCE PLAN:

57
 Every company plans for the required number of and 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 company has to select the appropriate candidates from the
pool of applicants. The company develops or borrows the appropriate
bases/techniques for screening the candidates in order to select the
appropriate candidates for the jobs.

(E) APPLICATION FORM:

Application form is also known as application blank. The
techniques of application blank are traditional and widely accepted for
securing information from the prospective candidates. It can also be used as
a device to screen the candidates at the preliminary level. Many companies
formulate their own style of application forms depending upon the
requirement of information based on the size of the company, nature of
business activities, type and level of the job etc. Information is generally
required on the following items in the application forms:

58
  Personal background information
 Educational qualifications
 Work experience
 Salary (drawing and expecting)
 Personal attainments including likes and dislikes

(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 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.

(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 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

59
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.

60
 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 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:

61
 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.

(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:

62
 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:
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.

63
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.

(1) Objective tests:

Most personality tests are objective tests as they are suitable
for group testing and can be scored objectively.

(2) Projective tests:

Candidates are asked to project their own interpretation of
certain standard stimulus basing on ambiguous pictures, figures etc. under

64
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 choice of Edward s personnel preference schedule.

 Gordon personal profile.
 The Minnesota Multi-phasic Inventory offers different methods for
identifying 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 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.

65
(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:

66
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
providesinformation on various items required by the candidate.

CORE INTERVIEW:
It is normally the interaction between the candidates and the line
executive or experts on various areas of job knowledge, skill, talent etc. This
interview may take various forms like:

(1) Back ground information interview:

This interview is intended to collect the information which
is not available in the application blank and to check that information
provided in the application blank regarding education, place of domicile,

67
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:

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 arebrought 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
tothe candidates who assemble in one room and they are asked to discuss

68
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.

(6) Panel interview:

A panel of experts interview each candidate, judges his
performance individually and prepares consolidated judgement. 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:

69
 After the experts including the line managers of the
organization in the core areas of the job examine the candidates, the head of
the department/section concerned interviews the candidates once again,
mostly through informal discussion. The interviewer examines the interest of
the candidate in the job, organization, reaction/adaptability to the working
conditions, career planning, promotional opportunities, work adjustment and
allotment etc. The personnel manger also interviews the candidates with a
view to find out his reaction/acceptance regarding salary, allowances,
benefits, promotions, opportunities etc. 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.

(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.

70
  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:

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. 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. 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

71
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 and personnel
managers should be established to take proper decisions.

(N) JOB OFFER:

Thus, after taking the final decision, the organization has
to intimate this decision to the successful as well as unsuccessful
candidates. The organization offers the job to the successful candidates
either immediately or after some time depending upon its time schedule. The
candidate after receiving job offer communicates his acceptance to the offer
or requests the company to modify the terms and conditions of employment
or rejects the offer.

(O) EMPLOYMENT:
The company may modify the terms and conditions of
employment as requested by the candidate. The company employs those

72
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.

RECRUITMENT AND SELECTION AT HDFC STANDARD LIFE

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. Background checking of

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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.

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

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 • 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.

Analysis of data / Statistical data

After the data is collected the researcher has to analyze the
collected data, the researcher has to classify the data into purposeful and
usable category. The analysis can be done by means of various statistical
measures. For representation of the data use of bar charts, Pie Chart is
made.

Interpretation of data

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 After data analysis is done, the obtained information is interpreted
and various inferences are made and also conclusions are drawn related to
the objectives, which have been listed, in the beginning of project.

FINANCIAL REPORT

PROFIT & LOSS ACCOUNT FOR 31 MARCH 2010

Source: HDFC Standard Life 2009-10 Annual Report

FY ending 31 March 2009-10 2008-09

Premium 70,051,044 55,646,937
Reinsurance ceded (494,720) (463,174)
Premium earned (net) 69,556,324 55,183,763
Income from investments 57,228,189 17,231,361
Other income 3,862,305 6,504,424
Total income 130,646,818 44,456,826
Commission expense (5,254,973) (4,248,904)
Operating expenses 15,090,403 17,600,683
Fringe benefit tax - (66,320)
Benefits paid (net) (13,378,943) (6,812,692)
Interim bonuses paid (1,013) (611)
Terminal bonuses paid (2,725) (4,194)
Change in valuation of liability

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 against life policies in force 95,009,353 14,057,024
Surplus / (Deficit) 1,909,409 1,666,398
Shareholders' Account 472,930 794,984
Transfer to Other Reserves - -
Funds for future appropriation –
Provision for lapsed policies 532,861 285,019
Balance being Funds for
Future Appropriations 903,618 586,395
Total 1,909,409 1,666,398
Amounts transferred from the
Policyholders Account 472,930 794,984
Income from investments 335,133 329,343
Other income 3,522 300
Total income 811,585 1,124,627
Expenses other than those related to
insurance business (3,981) (5,307)
Contribution to the
Policyholders Fund (3,559,448) (6,148,951)
Profit / (Loss) before tax (2,751,844) (5,029,631)
Provision for taxation - -
Profit / (Loss) after tax (2,751,844) (5,029,631)

Statutory profit and loss account

BALANCE SHEET (2010)

Source: HDFC Standard Life 2009-10 Annual Report

FY ending 31 March 2009-10 2008-09 2009-10 2008-

09
Sources of funds Application of funds
Shareholders' funds Investments
Share capital 19,680,000 17,958,180 Shareholders' 6,304,757 4,291,597
Reserve and surplus 552,892 552,892 Policyholders' 43,415,382
30,152,727
Credit/(Debit) fair Assets held to cover
value change account 184,435 (77,610) linked liabilities
155,217,800 68,782,936
Sub-total 20,417,327 18,433,462 Loans 40,366 30,248
Fixed assets 1,143,777 1,451,346
Borrowings - - Current assets

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Policyholders' funds: Cash and bank
Balances 2,826,362
4,108,660
Credit/(Debit) fair Advances and
value change account 205,087 (296,885) other assets 4,917,758
5,428,699
Policy liabilities 37,666,908 29,092,419 Sub-total 7,744,120
9,537,359
Insurance reserves - -
Provision for linked
Liabilities 127,701,636 84,085,083 Current liabilities 12,281,585
8,820,225
Add: Fair value change 27,516,164 (15,302,147) Provisions 187,617
208,813
Total provision for
linked liabilities 155,217,800 68,782,936 Sub-total 12,469,202
9,029,038
Sub-total 193,089,795 97,578,470 Net current assets(4,725,082) 508,321
Funds for future
Appropriations 1,490,013 586,395
Funds for future Debit balance
appropriations –provision in profit and
for lapsed policies 1,064,831 531,970 loss account 14,664,966
11,913,122
Surplus allocated to shareholders -
Total 216,061,966 117,130,297 Total 216,061,966 117,130,297

Statutory balance sheet

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.
 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 30-50 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.

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.

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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.

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.

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 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
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 ad
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.

Based on the findings in the Research following suggestions are made –

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 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.

 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.

 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.

 Unit Manager should meet regularly with the existing advisors so that
he can find out their problems & also take 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 opt
for descriptive advertisements how our solutions are better than the
traditional business solutions.

BIBLIOGRPHAY

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 WEBSITES :

) www.hdfcslic.com
) 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

ANNEXURE

“RECRUITMENT AND SELECTION OF FINANCIAL ADVISORS “

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Name:
Age : Sex :
Address :
Phone No. : Mobile No. :
Email Id :
(if any)

Q1. How many candidates are generally recruited for financial advisor
through various sources of recruitment ?

• Natural market
• References
• Advertisement
• Consultants

Q2. Does the people recruited fulfils all the criteria for being financial
advisor (criteria- married , age>25 yrs , graduate , living in a city for more
than 5 years , income should be nearly 2 lacs)?

• Yes
• No
• Partially

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Q3. Which age group of people are generally forms the majority as a
Financial Advisor?

• 25-30 years r
• 30-50 years
• 50-65 years

Q4. Which kind of trainings are generally provided by the HDFC-SLIC for
the Advisors ( which is compulsory by the IRDA before sitting for the
test)?

• Online Training
• Classroom Training
• Both

Q5. Which kind of training does generally future financial advisors goes
for?

• Online Training
• Classroom Training

Q6. How many Financial Advisors are generally recruited by the company
(at the kothrud)?

• >10
• 10>25

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• 25>50
• 50>60

Q7. Do the recruited people do have the knowledge of insurance sector?

• Yes
• No

Q8. Are you satisfied with the procedure of test conducted by the IRDA
department?
• Yes
• No
• Can’t Say

Q9. Do all the recruited people continue working as Financial Advisor?

• Yes
• No
• Can’t Say

Q10. What is the average work experience of Financial Advisor in HDFC

STANDARD LIFE?

• No experience
• More than 2 years

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• Less than 2 years

Q11. Who are mostly appointed for the post of Financial Advisor?

• Banking & Finance

• Medical Science
• IT
• Lawyer
• Teacher
• Others

Q12. Do everyone attend 21 days training program ?

• Yes
• No
• Can’t say

Q.13 Why one generally want to join HDFC STANDARD LIFE as

Financial Advisor ?
• Pinnacle Programme
• Extra Income
• No Capital

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