Professional Documents
Culture Documents
2008-2010
This is to certify that Ms. LEENA BIJARNIYA student of MBA II Year (IIIrd Sem.)
at COLLEGE OF ENGINEERING AND TECHNOLOGY, BIKANER has
completed training project report entitled “RECRUITMENT PROCESS IN
INSURANCE COMPANY”. The project has been completed after studying for
one year in MBA course and for partially fulfilling the requirements for award of
degree of Master of Business Administration of Rajasthan Technical University,
Kota.
The Training Project Report has been completed under the guidance of Mr.
NARENDRA CHOUDHARY of CET and is as per norms and guidelines
provided.
2
PREFACE
The information regarding the project research was collected through the
questionnaire formed by me which was filled by the customers there.
3
ACKNOWLEDGEMENT
I would take this opportunity to thank all my family members for their helps
& suggestions during the course of project work. I am also thankful to all my
friends who gave me constant & continuous inspiration to complete this project.
I would also like to thank the supporting staff College of Engineering &
Technology, Bikaner for their help and cooperation throughout our project.
( )
LEENA BIJARNIYA
4
EXECUTIVE SUMMARY
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CHAPTER NO. CONTENTS PAGE NO.
Chapter No.-1 Introduction to the Industry 1-13
1.1 Introduction 2
1.2 Insurance industry 6
1.3 Life insurance 8
1.4 Life insurance in India 11
Chapter No.-2 Introduction to the Organization 14-34
2.1 SBI life insurance 15
2.2 Products 17
2.3 Tax benefits 21
2.4 Project profile 23
Chapter No.-3 Research Methodology 35-39
3.1 Title of the study 36
3.2 Duration of the project 36
3.3 Objective of study 36
3.4 Type of research 36
3.5 Sample size and method of selecting 37
sample
3.6 Scope of study 39
3.7 Limitation of study 39
Chapter No.-4 Facts and Findings 40-46
4.1 Market survey 41
4.2 Role of the development agency 46
Chapter No.-5 Analysis and Interpretation 47-53
5.1 Market survey report 48
5.2 Product policy queries 52
Chapter No.-6 SWOT 54-56
6.1 Strengths 55
6.2 Weakness 56
6.3 Opportunities 56
6.4 Threats 56
Chapter No.-7 Conclusion 57-58
Chapter No.-8 Recommendation and Suggestions 59-61
Appendix 62-65
Bibliography 66-67
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Chapter – 1
Introduction to the Industry
Introduction
Insurance Industry
Life Insurance
Life Insurance in India
7
INTRODUCTION TO THE INDUSTRY
1.1 Introduction
The insurance sector was opened up in the year 1999 facilitating the entry
of private players into the industry. With an annual growth rate of 24.31 percent
and the largest number of life insurance policies in force, the potential of the
Indian insurance industry is huge. The year 1999 saw a revolution in the Indian
insurance sector, as major structural changes took place with the ending of
Government monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting entry restrictions for private players and
allowing foreign players to enter the market with some limits on direct foreign
ownership.
8
According to the CSO, the insurance and banking services’ contribution to
the country’s GDP is 7.1 percent out of which the gross premium collection forms
a significant part. Life insurance penetration in India was less than 1 percent till
1990-91. During the ‘90s, it was between 1 and 2 percent and from 2001 it was
over 2 percent. In 2003-04 it was 2.4 percent. In 2007-08 it was 14percent.
The impetus for increase is due to the active role played by IRDA in
licensing private players and taking positive steps in increasing the insurance
awareness among the people. Besides, the insurance companies in general and
private insurance companies in particular, are reaching out to untapped potential
in rural areas with aggressive campaigns.
Innovative products, smart marketing, and aggressive distribution have
enabled fledgling private insurance companies to sign up Indian customers faster
than anyone expected. Life insurance is viewed as a tax saving device. People
are now turning to the private sector for providing them with new products and
greater variety for their choice. The improvement in FDI flows reflected the
impact of recent initiatives aimed at creating an enabling environment for FDI and
for encouraging infusion of new technologies and management practices. The
Government’s proposal to increase the FDI cap in the insurance sector from the
present 26 percent to 49 percent has raised expectations among the international
insurance companies.
1.1.1 Definition
“Insurance is a contract in which sum of money is paid to the assured in
consideration of insurer’s incurring risk of paying a large sum upon a given
contingency.” --- Justice Tindall
“Insurance is a contract by which one party for a compensation called in
the premium assumes particular risks of the other party and promises to pay to
him or his nominee a certain sum of money on a specified contingency.”
---
E.W.Fitterson
“Insurance may be described as social device whereby a large group of
individuals, through a system of equitable contribution, may reduce certain
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measurable risk of economic loss common to all members of the group.”
--- Encyclopedia
Britannica
The above definitions clearly shows that insurance is a cooperative device
to spread the loss caused by a particular risk over a member of persons who are
exposed to it and who agree to insure themselves against risk. Insurance does
not eliminate risk but only reduces the financial burden, which may be very
heavy.
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1.1.3 Nature of Insurance
The insurance has the following characteristics which are observed in
cases of life, marine, fire and general insurance.
1. Sharing of risks: Insurance is a cooperative device to share the financial
losses which might befall on an individual or his facility on the occurrence
of specified event such as sudden death of the bread winner, marine perils
in marine insurance, fire in the fire insurance and theft insurance etc. in
the case of general insurance.
2. Cooperative device: A large number of persons agree to share the loss
arising sue to a particular risk. Thus, insurance is a cooperative device.
3. Value of risk: The risk is evaluated before insuring to charge the amount
of share called premium.
4. Payment made at contingency: The payment is made at a certain
contingency insured. The Contingency may be death, fire, marine perils
etc.
5. Amount of payment: The amount of payment depends upon policy
insured.
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the risk and if the concern is big enough the handling of risk
becomes a specialized function. Insurance, as a device is the
outcome of the existence of various risks in our day to day life. It
spreads the whole losses over a large number of persons who are
exposed by a particular risk.
B) Secondary Functions-
1) Prevention of loss: Prevention is always better than cure.
Prevention is by far the best solution to the problem of risk. It is
more effective and cheapest method to avoid the unfortunate
consequence. But sometimes prevention is not always possible and
Effective.
2) Provides capital: It provides the capital to the society. For
plan development of country there is a great need for huge amount
of capital. Now days, the insurance companies are rendering
positive help in the development of trade, commerce and industry
of the country.
3) Improves efficiency: Achievement of goals, it improves not
only his efficiency of the masses is also advanced. The insurance
eliminates worries and miseries of losses as death and destruction
of property care free person can devote his energies for better.
4) Ensures the welfare of society: “Insurance is a saga of
service and security” to thee society. Security of the life and
property given by insurance bring peace of mind to the insured. The
investment in LIC in welfare schemes like electricity, housing, water
supply, agro industry estates are able to solve many problems in
India.
5) Helps in economic progress: Insurance provides an initiative
to work hard for the betterment of the masses. Life insurance
involves the element of saving investment through small savings.
And which has been growing in recent years at an annual rate of
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about Rs. 400 crs. Life insurance is not a mere business
organization; it has nobler welfare responsibilities in the
development of the economy.
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saving device, are now suddenly turning to the private sector and snapping up
the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with
premium income from new business at Rs. 253.43 billion during the fiscal year
2004-2005, braving stiff competition from private insurers. RNCOS’s report,
“Indian Insurance Industry: New Avenues for Growth 2012”, finds that the market
share of the state behemoth, LIC, has clocked 21.87% growth in business at
Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still
not enough to arrest the fall in its market share, as private players grew by 129%
to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year
(2004-2005) compared to the previous one, its market share came down from
87.04 to 78.07%. The 14 private insurers increased their market share from
about 13% to about 22% in a year's time. The figures for the first two months of
the fiscal year 2005-06 also speak of the growing share of the private insurers.
The share of LIC for this period has further come down to 75 percent, while the
private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public
sector companies and eight private insurers. According to estimates, private
insurance companies collectively have a 10% share of the non-life insurance
market.
Though the focus of this market research report is on the potential growth
on the Indian Insurance Sector, it also talks about the market size, market
segmentation, and key developments in the market after 1999. The report gives
an instant overview of the Indian non-life insurance market, and covers fire,
marine, and other non-life insurance. The data is supplied in both graphical and
tabular format for ease of interpretation and analysis. This report also provides
company profiles of the major private insurance companies.
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• Indian insurance market segmentation by products
• Size of the market and market share of life insurers, in INR (crore)
• Market share of non-life insurers
• Forecast of life insurance growth up to 2012
• Forecast of non-life insurance growth up to 2012
• Market revenue of both public and private insurers
• Policies and measures taken by IRDA to develop the insurance market
• Research and development activities
• Regulation of insurance and reinsurance companies
• Major challenges that Indian insurance sector is facing
• Profiles of the major players
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2. Insurance encourages and enforces thrift : many people may not have the
will power to continue a long term saving plan which they may formulate
regular payments in face of money other uses to which their limited
income could be put.
3. Easy installments and protections against creditors: the proceeds of a life
insurance policy can be protected against the claims of the creditors of life
assured by affection a valid assignment of the policies.
4. Tax relief: the income tax act exempts from tax that part of an individual’s
income which is devoted to payment of life insurance premium.
5. Estate duty: life insurance is the most practicable way to ensure definite
payment on one’s death without having resort to conversion of realizable
asset at a loss.
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4. Retirement: Provision for later years becomes increasingly necessary,
especially in a changing cultural and social environment. One can buy a
suitable insurance policy, which will provide periodical payments in one's
old age.
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1.4 Life Insurance in India
With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India. Today it
stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 percent to the country’s GDP .In spite of all
this growth the statistics of the penetration of the insurance in the country is very
poor. Nearly 80% of Indian populations are without Life insurance cover and the
Health insurance.
This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform.
Since then the insurance industry has gone through many sea changes
.The competition LIC started facing from these companies were threatening to
the existence of LIC. Since the liberalization of the industry the insurance
industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today. The use of
new distribution techniques and the IT tools has increased the scope of the
industry in the longer run.
1.4.1 History
The origin of insurance is very old .The time when we were not even born;
man has sought some sort of protection from the unpredictable calamities of the
nature. The basic urge in man to secure himself against any form of risk and
uncertainty led to the origin of insurance. The insurance came to India from UK;
with the establishment of the Oriental Life insurance Corporation in 1818.
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The Indian life insurance company act 1912 was the first statutory body
that started to regulate the life insurance business in India. By 1956 about 154
Indian, 16 foreign and 75 provident firms were been established in India. Then
the central government took over these companies and as a result the LIC was
formed. Since then LIC has worked towards spreading life insurance and building
a wide network across the length and the breath of the country. After the
liberalization the entrance of foreign players has added to the competition in the
market.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. In 1957 General Insurance
Council, a wing of the Insurance Association of India, frames a code of conduct
for ensuring fair conduct and sound business practices. In 1972 The General
Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
It was after this that 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.
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converted into national re-insurer. In July2002, Parliament passed a bill, delinking
the four subsidiaries from GIC.
Presently there are 12 general insurance companies with 4 public sector
companies and 8 private insurers. Although the public sector companies still
dominate the general insurance business, the private insurance companies have
a 10 percent share of the market, up from 4 percent in 2001. In the first half of
2002, the private companies booked premium worth 6.34 billion. Most of the new
entrants reported losses in first yr of their operation in 2001.
Insurance costs constitute roughly around 1.2 – 2 % of the total project
costs. Under the existing norms, insurance premium payments are treated as
part of the fixed costs. Consequently they are treated as pass through costs for
tariff calculations. For projects costing up to Rs.1 billion, the tariff Agent
committee sets the premium rates, for projects between 1 billion and 15 billion,
the rates are set in keeping with committee’s guidelines; and projects above 15
billion are subjected to reinsurance pricing. It is the last segment that has a
number of additional products and competitive pricing. Insurance, like project
finance, is extended by a consortium. Normally one insurer takes the lead,
shouldering about 40-50% of the risk and receiving proportionate percentage of
the premium.
Chapter – 2
Introduction to the Organization
SBI Life Insurance
Products
Tax Benefits
Project Profile
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INTRODUCTION TO THE ORGANIZATION
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State Bank of India enjoys the largest banking franchise in India. Along
with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500
branches across the country, arguably the largest in the world.
BNP Paribas Assurance is the life and property & casualty insurance unit
of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world’s top
6 group of banks by market value and a European leader in global banking and
financial services, is one of the oldest foreign banks with a presence in India
dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance
company in France, and a worldwide leader in Creditor insurance products
offering protection to over 50 million clients. BNP Paribas Assurance operates in
41 countries mainly through the banc assurance and partnership model.
SBI Life has a unique multi-distribution model encompassing Banc
assurance, Agency and Group Corporate. SBI Life extensively leverages the SBI
Group as a platform for cross-selling insurance products along with its numerous
banking product packages such as housing loans and personal loans. SBI
access to over 100 million accounts across the country provides a vibrant base
for insurance penetration across every region and economic strata in the country
ensuring true financial inclusion.
SBI Life extensively leverages the State Bank Group relationship as a
platform for cross-selling insurance products along with its numerous banking
product packages such as housing loans and personal loans.
2.1.1 Mission
“To emerge as the leading company offering a comprehensive range of
life insurance and pension products at competitive prices, ensuring high
standards of customer satisfaction and world class operating efficiency, and
become a model life insurance company in India in the post liberalization period.”
2.1.2 Values
• Trustworthiness
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• Ambition
• Innovation
• Dynamism
• Excellence
23
• Forayed into micro insurance with the launch of ‘Grameen Shakti’ in
Bhubaneshwar, Orissa for the economically underprivileged
sections of society.
• Received ISO 9001: 2000 certification for superior claim settlement
process.
• Became the only domestic life insurer to achieve CMMI Level 3
certification for IT processes and software development
capabilities.
2.2 Products
2.2.1 Horizon- II
SBI Life - Horizon II is a unique, non participating Unit Linked Insurance
Plan in Indian Insurance Industry, where you need not to be a financial market
expert. This plan offers the flexibility of Unit Linked Plan along with Automatic
Asset Allocation which provides relatively higher returns on your money where as
increasing death bench.
Twin benefit of insurance cover and market linked returns profits provides
higher security to Hassle-free investment management of funds from inception to
maturity, Automatic Asset Allocation of funds, automatic rebalancing of funds at
yearly intervals, free of cost higher protection, to meet your family financial
needs.
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It is a unique, non-participating Unit Linked Insurance Plan. As per the
plan and term chosen by you, SBI Life will invest the net premium amount into
each of the funds mentioned.
25
You can choose to pay either single premium or pay regular premium for the
entire policy term. Your contributions are invested into 5 fund options as per your
choice.
26
• Choice to invest & control four different funds as per your risk
appetite
• Choice to invest & control four different funds as per your risk
appetite.
• Flexibility to choose between two options
• Pure Pension
• Pension cum Life Cover
• No medical required for Pure Pension, automatic acceptance
facility
• Flexibility to increase regular contribution
• Top up payments: any amount, anytime
• Customize your plan by adding riders
• 15 days free look period
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• Hassle free plan- we manage your investment, giving you
maximum opportunity for growth while protecting your investments
against adverse market conditions.
• Attractive Tax benefits under the Income Tax Act, 1961
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783.94 crore new business premiums collected in this year, amounting to 9.06
percent of the market share. ICICI Prudential Life Insurance, which still has the
largest market share among the private life insurers as per capitalization and
number of lives covered, has slipped to the third rank, with a premium collection
of Rs 483 crore and a market share of 5.59 per cent up to May.
SBI life had collected Rs 546.34 crore in the previous year compared with
ICICI Prudential that had gathered Rs 951.76 crore. SBI Life Insurance has a
capital of Rs 2,000 crore and a paid-up capital of Rs 1,000 crore. SBI owns 74
per cent of the total capital with BNP Paribas Assurance holding the remaining
26 per cent.
According to figures made available by IRDA, LIC was on the top position
with a market share of 41 per cent on the new business premium collection in the
previous year. LIC was followed by ICICI Prudential, with 12.2 per cent market
share and SBI Life, with 8.9 percent. The insurance companies’ ranking is often
based on the new business premium coming out of the new policies that are
sold, though a large chunk of the money also comes from renewal premium.
Other leading life insurance companies, such as Bajaj Allianz Life, Max New York
Life and Reliance Life insurance, enjoy a market share of 3 to 4 per cent each. In
the previous financial year, when the global financial crisis unfolded, insurance
companies saw no growth in business when compared with the previous year.
This was primarily because of weak investor confidence and the flight to safety
that the investors had adopted after the equity markets came crashing down.
"All insurance advertising offers a solution after implicitly raising the fear of
death or uncertainty of retirement. There are 14-15 players in the market, all
saying more or less the same negative things. So we wondered, is there any
other way to reflect what we wanted," says Mr. Muralidharan. On the surface,
insurance is about death. But why should one insure? "It's to make sure an
individual, and then her or his dependants, live well. So, if insurance is portrayed
in this light, we can get a larger number of people to accept it," he adds.
The size of the life insurance market is Rs 11,323 crore. SBI Life, which
started operations in 2001, has a market share of 1.49 per cent in terms of
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premium and 8.97 per cent in terms of number of people insured, says Mr.
Muralidharan. Old and major player LIC has 67 per cent in terms of lives insured
and a market share of 74.26 per cent. Insurance companies also face the
challenge of getting younger people to invest. Most people under thirty think they
are "indestructible," says Mr. Muralidharan. The ads are "unpalatable" and
"determine your death" and definitely discourage a lot of very suave, articulate
people from even contemplating insurance, so our campaign aims to "remove the
whiff of death" from it and make it a "happiness product", he says.
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In the present scenario the living standard is becoming higher and higher
every day. Every person who has a family to survive wants to provide his family
each and every possible comfortable thing. He wants his children to be a well
dressed, to be higher qualified in a well recognized school, colleges, institutes
and wants his children to go abroad for higher education. He wants to live a
luxury life full of pleasure.
To fulfill all of his needs he has to earn more and more. Any person can
be on a job at a time or can be on a business can’t fulfill his pleasure
requirement. There is a source through which he can make money in a legal way
that is insurance sector.
Becoming an insurance Agent provides him the legal source by which he
can earn money with his current status. It is the business in which you deal with
you personal contacts and can gain extra income. This business needs low
investment and not of much effort. It’s all depending on your social contacts and
your skills to convince people by helping them to suggest the product which
suited them the most.
As due to critical diseases, growing percentage of accident and fear of
financial crisis everyone wants to secure his or her future. Insurance sector plays
a vital role in assuring people about their future. As the scope of insurance
enhancing, the need of an insurance Agent who can guide the potential
customers is growing.
Being an insurance agent of SBI Life Insurance provides a legal mean to
earn money which protects a person from earning through an illegal source
which is harmful for society as well as him. For the youngsters it provides great
platform to prove them. On the basis of their performance they can be recruited
as unit manager.
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Recruitment process involves a systematic procedure from sourcing the
candidates to arranging and conducting the interviews and requires many
resources and time. A general recruitment process is as follows:
1. Identifying the vacancy-The recruitment process begins with the human
resource department receiving requisitions for recruitment from any
department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
• Preparing the job description and person specification.
• Locating and developing the sources of required number and type of
employees (Advertising etc).
• Short-listing and identifying the prospective employee with required
characteristics.
• Arranging the interviews with the selected candidates.
• Conducting the interview and decision making
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process
i.e. the final interviews and the decision making, conveying the decision and the
appointment formalities.
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Fig.2.1 Recruitment process
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• Collect the document after its completion
• Forward it to project manager
• Feed it in the computer as the database
• Follow up as per conditions
Modes of Contact
• Personal Contacts
• References
• Phone Calls
• Guidance as per Unit Manager
E-Recruitment
Many big life insurance organizations use Internet as a source of
recruitment. E- Recruitment is the use of technology to assist the recruitment
process. They advertise job vacancies through worldwide web. The job seekers
send their applications or curriculum vitae i.e. CV through e mail using the
Internet. Alternatively job seekers place their CV’s in worldwide web, which can
be drawn by prospective employees depending upon their requirements.
34
and small organizations are using Internet as a source of recruitment. They
advertise job vacancies through worldwide web. The job seekers send their
applications or curriculum vitae (CV) through an e-mail using the Internet.
Alternatively job seekers place their CV’s in worldwide web, which can be drawn
by prospective employees depending upon their requirements.
The two kinds of e- recruitment that an organization can use is –
• Job portals – i.e. posting the position with the job description and the job
specification on the job portal and also searching for the suitable resumes
posted on the site corresponding to the opening in the organization.
• Creating a complete online recruitment/application section in the
company’s own website. Companies have added an application system to
its website, where the ‘passive’ job seekers can submit their resumes into
the database of the organization for consideration in future, as and when
the roles become available.
• Resume Scanners: Resume scanner is one major benefit provided by the
job portals to the organizations. It enables the employees to screen and
filter the resumes through pre-defined criteria’s and requirements (skills,
qualifications, experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes to the
employees facilitating the just-in-time hiring by the organizations. Also, the jobs
can be posted on the site almost immediately and is also cheaper than
advertising in the employment newspapers. Sometimes companies can get
valuable references through the “passers-by” applicants. Online recruitment
helps the organizations to automate the recruitment process, save their time and
costs on recruitments.
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• E-recruitment should be incorporated into the overall recruitment strategy
of the organization.
• A well defined and structured applicant tracking system should be
integrated and the system should have a back-end support.
• Along with the back-office support a comprehensive website to receive
and process job applications (through direct or online advertising) should
be developed.
SOURCES OF RECRUITMENT
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Internal Sources
1. Transfer: The employees are transferred from one department to
another according to their efficiency and experience.
2. Promotions: The employees are promoted from one department to
another with more benefits and greater responsibility based on
efficiency and experience.
3. Others are Upgrading and Demotion of present employees
according to their performance.
4. Retired and Retrenched employees may also be recruited once
again in case of shortage of qualified personnel or increase in load
of work. Recruitment such people save time and costs of the
organizations as the people are already aware of the organizational
culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and
Disabled employees are also done by many companies so that the
members of the family do not become dependent on the mercy of
others.
External Sources
1. Press Advertisements: Advertisements of the vacancy in
newspapers and journals are a widely used source of recruitment.
The main advantage of this method is that it has a wide reach.
2. Educational Institutes: Various management institutes, engineering
colleges, medical Colleges etc. are a good source of recruiting well
qualified executives, engineers, medical staff etc. They provide
facilities for campus interviews and placements. This source is
known as Campus Recruitment.
3. Placement Agencies: Several private consultancy firms perform
recruitment functions on behalf of client companies by charging a
fee. These agencies are particularly suitable for recruitment of
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executives and specialists. It is also known as RPO (Recruitment
Process Outsourcing)
4. Employment Exchange: Government establishes public
employment exchanges throughout the country. These exchanges
provide job information to job seekers and help employers in
identifying suitable candidates.
5. Labor Contractors: Manual workers can be recruited through
contractors who maintain close contacts with the sources of such
workers. This source is used to recruit labor for construction jobs.
6. Unsolicited Applicants: Many job seekers visit the office of well-
known companies on their own. Such callers are considered
nuisance to the daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable candidates
for the organization.
7. Employee Referrals / Recommendations: Many organizations have
structured system where the current employees of the organization
can refer their friends and relatives for some position in their
organization. Also, the office bearers of trade unions are often
aware of the suitability of candidates. Management can inquire
these leaders for suitable jobs. In some organizations these are
formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
8. Recruitment at Factory Gate: Unskilled workers may be recruited at
the factory gate these may be employed whenever a permanent
worker is absent. More efficient among these may be recruited to fill
permanent vacancies.
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are those factors which cannot be controlled by the organization. The internal
and external forces affecting recruitment function of an organization are:
Internal Factors
The internal factors i.e. the factors which can be controlled by the
organization are:
1. Recruitment Policy: The recruitment policy of an organization specifies the
objectives of recruitment and provides a framework for implementation of
recruitment program. It may involve organizational system to be
developed for implementing recruitment programs and procedures by
filling up vacancies with best qualified people.
Factors affecting recruitment policy
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
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• Recruitment costs and financial implications.
2. Human Resource Planning: Effective human resource planning helps in
determining the gaps present in the existing manpower of the
organization. It also helps in determining the number of employees to be
recruited and what qualification they must possess.
3. Size of the Firm: The size of the firm is an important factor in recruitment
process. If the organization is planning to increase its operations and
expand its business, it will think of hiring more personnel, which will
handle its operations.
4. Cost: Recruitment incur cost to the employer, therefore, organizations try
to employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.
5. Growth and Expansion: Organization will employ or think of employing
more personnel if it is expanding its operations.
External Factors
The external forces are the forces which cannot be controlled by the
organization. The major external forces are:
1. Supply and Demand: The availability of manpower both within and outside
the organization is an important determinant in the recruitment process. If
the company has a demand for more professionals and there is limited
supply in the market for the professionals demanded by the company,
then the company will have to depend upon internal sources by providing
them special training and development programs.
2. Labor Market: Employment conditions in the community where the
organization is located will influence the recruiting efforts of the
organization. If there is surplus of manpower at the time of recruitment,
even informal attempts at the time of recruiting like notice boards display
of the requisition or announcement in the meeting etc will attract more
than enough applicants.
40
3. Image / Goodwill: Image of the employer can work as a potential
constraint for recruitment. An organization with positive image and
goodwill as an employer finds it easier to attract and retain employees
than an organization with negative image. Image of a company is based
on what organization does and affected by industry. For example finance
was taken up by fresher MBA’s when many finance companies were
coming up.
4. Political-Social- Legal Environment: Various government regulations
prohibiting discrimination in hiring and employment have direct impact on
recruitment practices. For example, Government of India has introduced
legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped etc. Also, trade unions play important role
in recruitment. This restricts management freedom to select those
individuals who it believes would be the best performers. If the candidate
can’t meet criteria stipulated by the union but union regulations can restrict
recruitment sources.
5. Unemployment Rate: One of the factors that influence the availability of
applicants is the growth of the economy (whether economy is growing or
not and its rate). When the company is not creating new jobs, there is
often oversupply of qualified labor which in turn leads to unemployment.
6. Competitors: The recruitment policies of the competitors also affect the
recruitment function of the organizations. To face the competition, many a
times the organizations have to change their recruitment policies
according to the policies being followed by the competitors.
41
Chapter – 3
Research Methodology
Title of the Study
Duration of the Project
Objective of Study
Type of Research
Sample Size and Method of Selecting Sample
Scope of Study
Limitation of Study
42
RESEARCH METHODOLOGY
1. Support the organization ability to acquire, retain and develop the best
talent and skills.
2. Increase the effectiveness of various recruiting techniques
3.4 Types of Research
I used a descriptive type of research. It is one which includes surveys and
fact finding, enquiries of different kinds. The major purpose of such research is
description of the state of affairs, as it exists at present.
Methodology or process involving in the research followed during the
course of summer training is as follows –
Collection of data: This is an important aspect in formulating the objective of
research process where the data is collected via two process: (i) Primary
Sources and (ii) Secondary sources
43
i. Primary sources- Where the data is collected primarily by
interviewing and personal observation and is original in nature and
accurate to the considerable extent.
ii. Secondary sources- Where the data is obtained from some
published and printed sources such as newspaper, magazines, and
websites and so on.
44
Samplesize
Insurance
employees
Students
Businessmen
Other
professions
45
only those respondents can be asked for the purpose of filing
questionnaire.
3.6Scope of Study
Every research is conducted to fulfill certain objectives and this objective
in turn fulfill some purpose and is of significance for one or more then one
party. This research is significant for:
46
Chapter – 4
Facts and Findings
Market Survey
Role of the Development Agency
47
FACTS AND FINDINGS
L IFE IN S U R A N C E IS :
60 51
50
38
40
RESPONSES
30
20 16
10
0
P ro te c tio n o f T ax b e n e fit d e v ic e B o th
h u m an as s e t v alu e
ag ain s t u n c e rtain tyC A T E G O R Y
48
Essentiality of life insurance :-
78
80
RESPONDENTS 70
60
50
NO. OF
27
40
30
20
10
0
Yes No
RESPONSES
RESPONDENT'S QUALIFICATION
10%
57%
49
Age qualification for life insurance :-
AGE QUALIFICAITON:
6%
20%
39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group
35%
Causes of dissatisfaction :-
CAUSES OF DISSATISFACTION
10%
23%
Low employment
16%
Low earning / income
Low status
17%
34% Huge capital investment
50
Career in life insurance :-
70
59
60
RESPONDENTS
50 46
NO. OF
40
30
20
10
0
Yes RESPONSES No
100 86
80
RESPONDENTS
60
NO. OF
40 19
20
0
Ye s No
R ESPON SES
51
Life insurance as a career :-
30
NO. OF
18
20
10
0
Yes No
RESPON SES
60
40 13
20
0
Ye s No
R ESPON SES
52
Fig.4.9 Growth of life insurance
60
50
40 31
30
20
10
0
Yes No
RESPONSES
53
Chapter – 5
Analysis and Interpretation
Market Survey Report
Product Policy Queries
54
ANALYSIS AND INTERPRETATION
Analyzing of collected data- The data collected through market survey and
published sources are then processed to obtained necessary inferences and
findings for the purpose of achieving the objective as well as to derive
necessary conclusion. A considerable skill and knowledge is involved in
analyzing the data for the purpose of interpreting thereof.
Interpreting of data- It is the significant step where the data collected and
analyzed is interpreted in the forms of graphs and figures is depicted in the
report called project report.
From the survey it was drawn that life insurance is more a protection of
human asset value against uncertainty (conferred by 51 respondents) where it is
a tax saving option (being accepted by 38 respondents).
Life insurance is a service involving both these prerequisites as depicted
by remaining 16 respondents.
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Essentiality of life insurance
Yes 78
No 27
Post graduate 35
Graduate 59
Senior secondary 11
Further, the age qualification for agency recruitment, it was found that
39% respondents were belonging to 18 – 25 age group, 35% were belonging to
25 – 35 age group where as 20% to 35 - 45 age group and remaining 6% to
above 45 age group.
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Causes of dissatisfaction
Respondents had different views about the dissatisfaction from the
present status of working or occupation. Dissatisfaction has been depicted
in a table below and graphically above-
Yes 59
No 46
When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every desire of their
life, 59 respondents agreed while 46 respondents said No and will see later
sometime in future. It has been depicted that life insurance sector should be
promoted at the wide extent as it contribute to the economy as a useful source
beneficial for both nation as well as its citizens.
Yes 86
No 19
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Life insurance as a career?
Yes 18
No 41
From the 59 respondents who agreed to know about the life insurance as
a career, 18 of them agreed to join HDFC Standard life insurance for agency and
come to the company fore more information whereas 41 still took time to think
and postponed to some future date. People are highly dissatisfied from the
earning, status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this agency for
life insurance would prove a boon.
Yes 92
No 13
Yes 74
No 31
58
Among 74 respondents from 105 respondents favored the privatization of
the life insurance and perceive that the people of India will know be more aware
and knowledgeable with respect to life insurance than that in the past 50 years
with the working of LIC.
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duration of life and the life insured amount is paid on the happening of the
death of the insured at any time.
b. Limited Payment Whole life Insurance: - where premiums are paid for a
limited and shorter period and the option of the insured or till death if
earlier. Risk coverage is however throughout the life of the insured.
Chapter – 6
SWOT
Strengths
Weakness
Opportunities
Threats
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SWOT
6.1 Strengths
SBI Life has a unique multi-distribution model encompassing
Bancassurance, Agency and Group Corporate. SBI Life extensively leverages
61
the State Bank Group as a platform for cross-selling insurance products. At
present SBI Life has over 400 branch offices in India.
We take pride in our track record of growth, financial solidity, ethical
practices, domain expertise and meritocratic culture. Join us for a rewarding and
an enriching career.
62
3. Lack of knowledge and expertise.
6.3 Opportunities
1. Life insurance has captured its mere15 – 20% growth
therefore a wide open untapped market is open to the company to
develop, grow and measure its success.
2. Still the numbers of companies are few and company has
every capability to grow and forward its performance areas to the
widest.
6.4 Threats
1. People are hesitant to invest and put their hard earned
money to the private life insurance company with the fear of getting
lost.
2. Belief towards LIC as it is a government corporation phobia
is continue to surmount the people of India despite lots of flaws and
development and liberalization of life insurance.
3. Alternative financial services such as mutual fund, banking
services, share and securities also pose problems and threats to
the working of the life insurance sector.
4. Illiteracy and unemployment also pose threat.
5. Rising real estate industry also pose threat as people are
investing a bulk of their money over to that industry.
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Chapter – 7
Conclusion
Conclusion
CONCLUSION
64
Summer training is a best example for a trainee to learn about the
company working, corporate culture under which is operating the functions. SBI
life insurance company under which I gained a significant knowledge with respect
to life insurance, its importance and applicability as well as undertook the task to
recruit capable life insurance advisors which is conducive for the company to
grow with more prosperity. What I taught in the management institute utilized
them fruitfully leading to the best advantage to the company and to the best
experience for mine.
In all Public Service jurisdictions, new approaches to recruitment are being
used. In many territories, the strategies are manual but, as automated methods
become more pervasive, those mechanisms that support its use will assume
greater popularity.
Whatever the strategies selected for use, the objective is to recruit the
most qualified, committed individuals into the organizations and ensure that the
provision of government services to the public is timely and effective, that the
goods are of consistent high quality and that the organizations achieve the
objectives for which they have been established.
Life insurance is a noble service which is very important for every citizen
to learn and realize its importance because this is the only source which can
remain the status where one is with the family bread earner and ever when he is
not.
With the growing financial sector I would like to opt this industry for my
future career advancement and as an opportunity to service this industry.
65
Chapter – 8
Recommendation and Suggestions
Recommendations
Suggestions
66
Recommendations-
Following are suggestions made for the benefits and augmentation of the
sound working of the company –SBI life insurance
1. Need to train and develop life insurance agents with more
comprehensive knowledge and skills to counter every queries of
the customer.
2. It is suggested that company should not left any stone
unturned towards sound advertisement and promotional measures
on every section whether it is printed, media or air via radio.
3. It is also suggested that skilled management graduates need
to be places on sales and marketing of financial services that can
render their best ideas for the accomplishment of the company
goals and objectives to the best extent.
4. Also, care need to be taken that every customer’s grievance
should be met with delight whether before purchase or after sales.
5. There should be an expansion measure for more offices and
location of more centers for offices of the company is established
sop that company may grow its network.
6. Life insurance Products should be made flexible so as to suit
every section of society.
Suggestions-
Following are suggestions made for the benefits and augmentation of
the sound working of the company –SBI life insurance:
67
2. It is suggested that company should not left any stone unturned
towards sound advertisement and promotional measures on every section
whether it is printed, media or air via radio.
4. All the company should come out of a unit link product that should
aid every selection of the society.
68
APPENDIX
Questionnaire:
Q.5. Would you like to know about a career in life insurance advisor ship
where you can fulfill every desire of your life?
a) Yes
b) No
69
Q.6. Do you perceive that life insurance business is a noble service
oriented business?
a) Yes
b) No
Q.7. Would you like to become or opt for life insurance advisor under
esteemed and prospering organization SBI Life insurance?
a) Yes
b) No
Q.8. Do you agree that the life insurance business is a growing industry
and will grow and rapid pace in future?
a) Yes
b) No
SUGGESTION:
1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
PERSONAL INFORMATION:
Name: - ………………………………………………………………
Location: - ……………………………………………………………
70
Occupation: - …………………………………………………………
Glossary:
71
List of Figures:
72
BIBLIOGRAPHY
MAGAZINES:
• India Today
• Business World
• Business Economics
• LSE’s Magazine
REFERENCES:
• Websites-
www.sbiindia.co.in
www.sbilife.co.in
www.irdaindia.org
www.liccouncil.org
www.businessconnect.com
www.google.co.in
www.netpnb.com
73
www.pnbindia.com
business.mapsofindia.com
finance.indiamart.com
www.scribd.com
www.nseindia.com
www.bseindia.com
http://en.wikipedia.org/wiki/consumer_psyche
NEWSPAPER:
• The Economics times
• The Hindu
• Times of India
• Business line
• D.N.A
OTHERS:
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