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OF PUNE IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION (M.B.A.) SUBMITTED BY (BIBHANSHU KUMAR SINGH) (BATCH - 20007-2009)
BRACT’s Vishwakarma Institute of Management, Kodhawa Pune- 411014
I was actively involved with HDFC Standard life insurance company ltd Pune, for a period of 8 weeks, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. Firstly I would like to thanks Mr. VINYAK BHIVARE 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. TRUSANT ARDE 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.
I wish to express my gratitude to Prof. BANDANA GOTE (project guide) who gave me proper guidance throughout the project, without his guidance and feedback it would not have been possible for me to under take the research & utilize the research methodology tools appropriately. I would also like to convey thanks to all my colleagues who were also summer trainees like me for being ready with a helping hand.
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12
TOPIC EXECUTIVE SUMMERY OBJECTIVE & SCOPE OF PROJECT COMPANY PROFILE THEROTICAL BACKGROUND RESEARCH METHODOLOGY DATA ANALISIS FINDINGS & LIMITATION CONCLUSION RECOMMENDATIONS BIBLOGRAPHY ABBRIVATIONS ANNEXURE
Page No. 1 5 8 31 44 51 59 62 64 66 68 70
Index for Tables & Charts
Sr.No 1 2 3 Table/Chart Awareness About HDFC Standard Life Insurance Services Best Instrument For Investment Accepted Insurance Plans Page No. 54 55 56
Various Reasons Not To Invest Money Percentage of Investments by People
(1) 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. LIFE . The main objective of the project is to understand the recruitment and selection of financial consultant more effectively and efficiently, because financial consultant play most important role in business of insurence. 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. There many limitations of this project like, biased reply, customers busy, time constraint as the project has time limit of 2 months, area limitation etc. So to understand the process of Recruitment of financial consultant in HDFC STANDARD
PROJECT TITLE RECURITEMENT AND SELECTION OF FINANCIAL CONSULTANT
(3) COMPANY PROFILE
COMPLETE NAME OF THE COMPANY
Company Name: - “HDFC Standard Life Insurance Company”
We aim to be the top insurance company in the market. This does not just mean to be the largest or the most productive company in the market; rather it is a combination of several things like – 1. Customer service of the highest order. 2. Value for money for customers. 3. Professionalism in carrying out business.
The most successful and admired life insurance company, which mean that we are the most trusted company, the easiest to deal with, offer the best valve for money, and at the standards in the industry. In short “The most obvious choice for all”
SLOGAN “Sar Uttha Kar Jiyo”
HDFC Securities Limited:-
by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors, a capability to transact in the Stock Exchanges & other financial market transactions. HDFC securities, provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools.
HDFC Bank Limited:HDFC Securities Ltd was promoted by the
HDFC Bank & HDFC with the objective of in the Stock Exchanges & other financial market transactions.
the diverse customer base of the HDFC Group and other investors, a capability to transact
HDFC securities, provides you with the necessary tools to allocate, select and manage your investments wisely, and also support it with the highest standards of service, convenience and hassle-free trading tools.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive approval from the Reserve Bank of India to set up a bank in the private sector. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai.
HDFC Asset Management Company Limited:HDFC Fund is a dominant player in the
Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests.
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses.
Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor.
HDFC Chubb Insurance Company Limited:-
Over one century of experience in the field of non-life insurance from Chubb and HDFC's expertise from the financial segment, HDFC Chubb General Insurance Company Limited has the consumer insight to make its product range world class and comprehensive.
HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million.
HDFC STANDARD LIFE COMPANY LTD.
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing financial institution and one of the
subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. Both the promoters are well known for their ethical dealings and financial strength and thus committed to being a long-term player in the life insurance industry. THEIR KEY STRENGTHS:Financial Expertise – As a joint venture of leading financial services groups. HDFC Standard Life has the financial expertise required to manage long-term investment safely and efficiently.
Range Of Solution – We have a range of individual and group solution, which
can be easily customized to specific needs.
Track Record so far – The gross premium income , for the year ending march
31, 2008 stood at Rs. 4859cr and new business premium income stood at Rs 2,685cr .The company has covered over 9,59,000 live year ending march 31 ,2008 The total business premium income also grew to Rs.2685 crores in FY 2007-08 registering a year on year growth of 63% . 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 Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
• Type of products
(1) Protection A. Term assurance plan B. Loan cover term assurance plan A) Term assurance plan:Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to one’s family in the unfortunate event of one’s death. Since this no-participating plan is pure risk cover plan, no benefits are payable on the survival to the end of the term of the policy. B) Loan cover term assurance plan:-
This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since this is a nonparticipating, 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 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 is permitted by the prevailing regulation, the national lump sum can be used to buy an annuity with any other insurance company
B) Unit linked personal pension plan:The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On investing the vale of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000.
(4) Saving A. Unit linked endowment plan B. Money back C. Endowment plan D. Unit linked youngster plan
A) Unit linked endowment plan:The unit linked endowment plan is an insurance policy that is designed to pay a lump sum amount on the maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against common critical illness, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the value of your units and your selected basic sum assured.
B) Money back:It is a participating (with profits) insurance plan that offers the features listed below: i) Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of policy. ii) On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid is provided. In case of the unfortunate death of the life assuror within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts.
C) Endowment plan:-
It is a participating (with profits) insurance plan that offers the following features: i) It provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. ii) It provides a lump sum payment to the life assures on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions. D) Unit linked youngster plan:HDFC Unit linked Young Star plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in his future, even in case of the insured parent’s unfortunate death during the policy term. The Unit linked Young Star plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit price. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity. Following a valid death or critical illness claim, we will pay the future premiums (at the level originally chosen at inception) into your policy, as and when they would have fallen due.
LIST OF MAJOR COMPITITOIRS
1. Aviva Life Insurance 2. Bajaj Allianz 3. Birla Sun Life Insurance 4. ICICI Prudential Life Insurance 17
5. Kotak Mahindra Old Mutual Life Insurance Limited 6. Life Insurance Corporation of India (LIC) 7. Max New York Life Insurance 8. MetLife India Insurance 9. Reliance Life Insurance 10. SBI Life Insurance 11. ShriRam Life Insurance 12. TATA AIG Life Insurance 13. BHARTI AXA
Head Office - Edinburgh, Scotland (UK) • Worldwide Operations and Presence United Kingdom: Canada Ireland Germany 31 branches 11 branches 7 branches 1 branch
HISTORICAL DEVELOPMENT OF THE COMPANY
From the beginning, has been to enhance residential housing stock and promote home ownership. HDFC was incorporated in 1977 with the primary objective of meeting a social need – that promoting home ownership by providing long-term finance to household for their housing needs. HDFC was promoted with an initial share capital of Rs.100 million. HDFC Standard Life first came together for a possible joint venture, to enter the life insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1955 the companies signed a 3 yearn joint venture agreement. Around this time Standard Life purchased 5% stake in HDFC, further strengthening the relationship. Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19th century from its original Edinburgh premises, opening offices in other towns and acquiring other similar businesses. Standard Life currently has assets exceeding over £70 billion under its management and has the distinction of being accorded "AAA" rating consequently for the past six years by Standard & Poor. • • • • • • • Some Facts About The Company Founded in 1825 Mutual Life Insurance Company since 1925 Largest mutual life insurance company in Europe Assets under management over Rs 707836 crores (£ 89.2 bn) Total assets under management : Rs. 707836 Crores New premium income 2003 :Rs. 76277 Crores AA2 rated by Standard & Poor’s and Moody’s
ACHIVEMENT OF THE COMPANY • Awards and Recognition Year
• • • • • • • • • • 2003 2002 2001 2000 1999 1996-99 1995 1992-94 1991
Company of the Year Company of the Year Best Personal Pension Provider Company of the Year Company of the Decade Company of the year 4 star service award Overall best company 3 star service award
Standard Life has been awarded the "Raising Standards" quality mark.
This shows that the Company:
• • •
uses clear language to describe their products on key documents, have appropriate products and Provide a quality service for the customers.
Money Marketing Awards
• • • • • •
Company of the Year every year from 1999 to 2005 Best Pension Provider 2004 and 2005 Best Group Pension Provider every year from 1998 to 2003 Best Personal Pension Provider every year since 1998 to 2003 Best Life Investment Product Provider 2003 and 2004 Gold Award in the Poster Campaign Category (Advertising) 2004
Money facts Investment, Life & Pensions Awards
Best Pension Product 2003, 2004 and 2005 Best Pension Service 2003, 2004 and 2005
Bank hall Achievement Awards
Pension Provider of the Year 2003 and 2004
Financial Adviser Provider Awards
• • • • • •
Overall Winner in 1999, 2000, 2001 and 2002 Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003 Pensions Company of the Year 2004 Individual Pensions Company of the Year 2004 Group Pensions Provider of the Year 2004 Health Insurance Company of the Year 2004
Financial Adviser Service Awards
• • •
Company of the Year every year from 1997 to 2001 5 Star Life and Pensions Provider every year from 1996 to 2004 5 Star Investment Provider every year from 1996 to 2002 and 2004
Pensions Management Administration and Service Awards
• • •
Overall Winner - Personal Pensions 2003 Overall Winner - Stakeholder Pensions 2002 and 2003 Overall Winner - Group Personal Pensions 2002 and 2004
Member Communications - Personal Pensions, Group Personal Pensions & Stakeholder Pensions 2003 Backup (branch office) - Personal Pensions 2003 Backup (head office technical support) - Personal Pensions & Stakeholder Pensions 2003
CORPORATE GOVERNANCE 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). 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. Mr. Alexander M Crombie joined the Board of Directors of the Company the Standard Life Group in March 2004 and is also the Chief Executive of Standard Life Investments Limited. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms. Marcia D Campbell is currently the Group Operations Director in The Standard Life Assurance Company and is responsible for Group Operations, Asia Pacific 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 Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. 22
Mr. Keith N 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. G N Bajpai was the former chairman of Life Insurance Corporation of India and Securities and Exchange Board of India. Mr. Bajpai retired from Life Insurance Corporation of India with more than 3 decades of experience and further served SEBI as its chairman for 3 years, during which time he had strengthened the compliance enforcement in SEBI. Mr. Gautam R Divan is a practicing Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalized banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honors) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). 23
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC.
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
1. They are unable to target rural area as compare to LIC. 2. Poor awareness for new products in consumers Poor Distribution network. 3. Negligence to customers after the investment is sold. 4. Very Huge Premium of policies compared to major rival LIC. 5. Target Upper class people only. 6. All Brochures are in English only. 7. Sometimes right advice is not given to the customers. 8. The full charges are not revealed to the customers
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.
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. 8. Employee attrition.
(4) THEREOTICAL BACKGROUND
CHAPTER- 4 THEORETICAL BACKGROUND
4.1 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. 4.2 DEFINITION : “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.” 4.3 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.
4.4 ELEMENTS OF GOOD RECRUITMENT POLICY : A good recruitment policy must contain the following elements: 1) Organizational objectives : Both short term and long term organizational objectives must be taken into consideration. Identification of recruitment needs : The recruiters should prepare profiles for each category of workers and accordingly work out the main specifications, decide the sections, departments or branches where they should be placed. 2) Preferred sources of recruitment : The sources of recruitment should be identified properly.
3) Criteria of selection and preferences : Selection and preferences should be based on conscious thought and serious deliberation. 4) Monetary aspects : The cost of recruitment and financial implications of the same have to be kept in mind also. 4.5 PRE-REQUISITES OF GOOD RECRUITMENT POLICY : 1) It should be in conformity with the general personnel policies. 2) It should be flexible enough to meet the changing needs of the organization. 3) It 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.
4.6 FACTORS AFFECTING RECRUITMENT : Every organization, big or small has to engage in recruitment of persons, recruitment has two aspects1) To find out the number of vacancies to be notified and the type of applicants needed to fill them. 2) To approach the potential applicants to apply for such vacancies. No organization can recruit successfully without taking into consideration the following factors – 1) The Economic Factors –
The economic conditions of a country influence the recruitment process in all organization. The globalization and liberalization of Indian economies since 1991 onwards has resulted in a boom in financial services in India. As a result of the new economic policy, the demands of well 2) The Social Factors – These also affect the recruitment policy of an organization. Social changes in the past two decades in India, have forced organization 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. 4.7 PROCESS OF RECRUITMENT It passes through the following stages : 1) Recruitment process begins when personnel department receives requisition for recruitment from any department of the company. 2) Locating and developing the sources of required number and type of employees. 3) Identifying the prospective employees with required characteristics. 4) Developing the techniques to attract the desired candidates. 5) The next stage in the process is to stimulate as many candidates as possible. 6) Evaluating the effectiveness of recruitment process. 4.8 PROCESS OF RECRUITMENT COMPANY ADOPTS :
Evaluation and control
4.9 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. 4.9.1 Internal Sources – This is one of the important sources of recruitment. The employees already working in the organization may be more suitable for higher jobs than those recruited outside. Internal sources consist of the following : 1) Present Employees : Promotions and transfers among the present employees can be a good source of internal recruitment. 2) Employee Referrals : In an organization with a large number of employees referrals can provide quite a large pool of potential organizational members. 3) Former Employee : These are another internal source of recruitment. Some retired employees may be willing to come back to work. 4) Previous Employees : Those who have previously applied for jobs can be contacted by mail.
4.9.2 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 12. Cold calling 4.10 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 given company to ascertain whether the candidate specifications are matched with the job specifications and requirements or not. The selection process can be successful if the following requirements are satisfied: Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis to the workload and work force. There must be some standard of personnel with which a prospective 33
employee may be compared, i.e. a comprehensive job description and job specification should be available before hand. There must be a sufficient number of applicants from whom the required number of employees may be selected. The ability of an organization to attain its goal effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programme. If the right person is selected, he is valuable asset to the organization . SELECTION PROCEDURE: Selection procedure employs several methods of collecting information about the candidates qualifications, experience, physical and mental ability, nature and behavior, knowledge and aptitude for judging whether a given applicant is suitable or not for the job. Therefore the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step facts may come to light, which are useful for comparison with the job requirement and employee specifications. Steps in Scientific Selection Procedure: 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: 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: Personal background information Educational qualifications Work experience Salary (drawing and expecting) Personal attainments including likes and dislikes References 35
(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 stand up interviews or sizing up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate. (H) BUSINESS GAMES: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills etc. participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successful candidate in the game will be most successful one on the job. GROUP DISCUSSION is used in order to secure further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the
successful applicants are brought around a conference table and are asked to discuss either a case study or subject matter. The candidates in the group are required to analyze, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarizing or concluding aptly. The selection panel, based on its observation, judges the candidate s skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidate s writing ability as well.
Types of test:
Tests are classified into six classes, each class is again divided into different types of tests. They are: APTITUDE TESTS: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ). (1) Skill tests: These tests measure the candidate s ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of
tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also. (2) Mechanical aptitude tests: These tests measure the capabilities of spatial visualization, perceptual speed and knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc. (3) Psychomotor tests: These tests measure abilities like manual dexterity, motor ability and eyehand coordination of candidates. These tests are useful to select semi-skilled workers and workers for repetitive operations like packing and watch assembly. (4) Clerical aptitude tests: These types of tests measure specific capacities involved in office work. Items of this tests include spelling, computation, comprehension, copying, word measuring etc. ACHIEVEMENT TESTS: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the candidate s achievement in his career is tested regarding his knowledge about the job and actual work experience. SITUATIONAL TESTS: This test evaluates a candidate s in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situations of the job. (1) Group discussion: This test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, coordinating and concluding skills. (2) In basket: Situational test is administered through in basket method. The candidate in this test is supplied with actual letters, telephone and telegraphic message,reports and requirements
by various officers of the organization, adequate information about the job and organization. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda. INTEREST TESTS: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in a job and job success. Interest inventories are less faked and they may not fluctuate after the age of 30.
PERSONALITY TESTS: These tests prove deeply to discover clues to an individual s value system, his emotional reactions and maturity and characteristic mood. They areexpressed in such traits like selfconfidence, 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 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 multiskills and potentiality to apply them based on situational and functional requirement.
(J) INTERVIEW: Final interview follows after tests. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The different types of interviews are: 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, 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 are brought into one room and are interviewed one by one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. Under the discussion interview method, one topic is given for discussion to the candidates who assemble in one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are at ease in this category of interview because of its informality and flexibility. (5) Formal and structured interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting interview. The course of the interview is preplanned and structured, in advance, depending on job requirements. (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: 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. 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 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 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. The shortlisted candidates are called for the final interview. Regret letters are sent to those who are not shortlisted. Background checking of the shortlisted candidates is done to ensure that they will fit with the culture of the organization. Job offers are made to the selected candidates and they are asked to give their confirmation that they accept the job offer. On receiving their confirmation, appointment letter is prepared by personnel and administration division and given to the candidate at the time of joining. Salary offer is a part of Human resource division while personnel and administration division handles salary administration. Senior Executives and Executives are responsible for conducting the recruitment and selection process in a time phased manner. Work flow of recruitment and selection process is given below.
CHAPTER -5 RESEARCH METHODOLOGY
CHAPTER – 5 RESEARCH METHODOLOGY
5.1 RESEARCH :Research concern itself with obtaining information through empirical observation that can be used to systematically develop logically related so as to attempt to establish casual relationship among variables. A careful investigation or enquiry especially through search for new facts in any branch of knowledge. Research as a process involves defining and redefining problems, hypothesis formulation, organizing and evaluating data, deriving deductions, inferences, and conclusions, after careful testing and analysis. 5.2 OBJECTIVE OF THE PROJECT 5.2.1 PRIMARY OBJECTIVES: o To analysis the sources and process of recruitment of financial advisors. o To analysis the profile of Prospects for Recruitment of Financial Advisors . o To generate the database for the company. 5.2.2 SECONDARY OBJECTIVES : o To study the behavior of the general public and perception about HDFC STANDARD LIFE. 5.3 RESEARCH DESIGN :Conducting a research study without a research design is akin to sailing without a compass. It is a plan of action to be carried out in connection with the research project. It is the guideline for the researcher to enable him to keep track of his project and to know whether he was moving in the right direction or not. Research design economises on time, energy, manpower and other costs involved in the study. Appropriate design prevents the researcher from wandering aimlessly. It guides him to collect only the relevant data and provides the right kind of information. 5.4 TYPE OF RESEARCH DESIGN USED :-
Different type of research design are generally used but here basically descriptive and diagnostic type of research is used. Descriptive research aims at fact-findings and more often is based on surveys. Here we collect the facts and figures and analyze them and evaluate them critically. It is also called EX-post-facto research. Then diagnostic research begins it aims to identify the cause of a problem and its possible solutions. This includes the interpretation and findings. 5.5 TYPES OF DATA 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 5.5.1 Primary Data – Primary data are the data which are original in character, obtained for the first time, being collected from the respondents, either through questionnaire or through personal interviews. This can be collected by various methods like • • • • • • • Surveys Observation Experimentation Measurements Personal interview Telephonic interview Questionnaires
But my chosen way of collecting data was through Personal Interview and Questionnaires. 5.5.2 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. 5.5.3 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. 5.5.4 Interpretation of data 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.
5.6 RESEARCH PROCESS :The approach used for research is survey method. This method is commonly used for data collection if the research type is descriptive one. It includes research instruments like questionnaire, either structured or unstructured.
5.7 UNIVERSE (AREA UNDER STUDY) Universe means the particular area from where the researcher collect the data by selecting some sample from the total population of that area.
High accuracy is not possible due to limited sample size, so the researcher has selected HDFC STANDARD LIFE ,KOTHRUD 5.8 METHODS USED FOR DATA COLLECTION While doing this project I use following methods for carrying out this project successfully, some of the method are :o Questionnaire method o Personal interview The brief description about how I use these methods is given below. 5.8.1 COLLECTION OF DATA THROUGH :22.214.171.124 QUESTIONNAIRE This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even the governments. In this method questionnaire is sent to the persons concerned with a request to answer the questions and return the questionnaire consist of a number if questions printed or typed in a definite order on a form or set of forms. The questionnaire is mailed to respondents who are expected to read and understand the question and write down the reply in the space meant for in the questionnaire itself. The respondents have to answer the question on their own. The merits claimed on behalf of this method are as follows: • • • • • There is low cost even when the universe is large and is widely spread geographically. It is free from the bias of the interviewer answers are in respondents own words. Respondents have adequate time to give well thought out answers. Respondents, who are not easily approachable, can also be reached conveniently. Large samples can be made use of and thus the results can be made more dependable and reliable.
Main aspects of questionnaires: Quite often questionnaire is considered as the heart of the survey operation. Hence it should be carefully constructed. If it is not properly set up, then the surveys is bound to fail. This fact requires as studying the main aspects of a questionnaire.
126.96.36.199 INTERVIEW METHOD : The interview method of collecting data involves presentation of oral-verbal stimuli and reply in terms of oral- verbal responses. This method can be used through personal interviews and, if possible through telephonic interviews. 188.8.131.52 PERSONAL INTERVIEWS : Personal interview method requires a person known as the interviewer asking questions generally in a face-to-face contact to the person or persons. This sort of interview may be in the form of direct personal investigation the interviewer has to collect the information personally from the sources concerned. He has to be on the spot and has to meet people from whom data have to be collected. This method is particularly suitable for intensive investigations. Major advantage of personal interview can be enumerated in general way : • • More information and that too in greater depth can be obtained. Interviewer by his own skill can overcome the resistance, if any, of the respondent; the interview method can be made to yield an almost perfect sample of the general population. • • • There is a greater flexibility under this method as the opportunity to restructure questions is always there, especially in case of unstructured interviews. Observation method can as well as be applied to recording verbal answers to various questions. Personal information can be as well as obtained easily under this method.
Samples can be controlled more effectively as there arises no difficulty of the missing returns, non-response generally remains very low. The interviewer can usually control which person will answer the questions. This is not possible in mailed questionnaire approach. If so desired, group discussions may also be held.
The interviewer may catch the informant off-guard and thus may secure the most spontaneous reactions than would be the case if mailed question are in used. The language of the interview can be adopted to the ability or educational level of the personal interviewed and as such misinterpretations concerning questions can be avoided.
The interviewer can collect supplementary information about the respondent’s personal characteristics and environment this is often of great value in interpreting results.
Random Sampling Technique was used to take decision regarding the sampling technique to be adopted. 5.9 SAMPLE SIZE : 100
CHAPTER-6 DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Q.1 How many candidates are generally recruited as a financial advisor through various sources of recruitment ? Sr.No. 1 2 3 4 Sources Natural Market Reference Advertisement Consultants TOTAL No.of respondent(%) 20 30 40 10 100
Natural Market References Advertisment Consultant
Interpretation: Most of the financial advisor are recruited through external sources i.e.40% 30% are recruited through references. 20% are recruited through natural market. 10% are recruited through consultants Q.2 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)? Sr. No. 1. 2. 3. TOTAL Criteria Yes No Partially No. of respondent(%) 78 10 12 100
Yes No Partially
Interpretation : 78% of the recruited people fulfils all the criteria. 22% of the recruitement done donot fulfils all the criteria.
Q.3 Which age group of people generally forms the majority as a Financial Advisor? Sr. No. 1 2 3 TOTAL Age 25-30 yrs 30-50 yrs 50-65 yrs No. of respondent(%) 19 56 25 100
25-30% 30-5-% 50-65%
Interpretation : Maximum are from the age group of 30-50 yrs & above i.e.56%. 25% are from the age group of 50-65 years. 19% are from the age group of 25-30 yrs.
Q.4 Which kind of trainings are generally provided by the HDFC STANDARD LIFE for the Advisors ( which is compulsory by the IRDA before sitting for the test)?
Sr. No. 1 2 3
Types Of Training Online training Classroom training Both TOTAL
No. of respondent 24 56 17 100
Online training Classroom training Both
Interpretation : HDFC STANDARD LIFE conducts classroom training. 24% says the company conducts online training. 17% says it provides both kind of training.
Q.5 Which kind of training does generally future financial advisors goes for? Sr. No. 1 2 Training Online training Classroom training TOTAL No. of respondent 60 40 100
Online training Classroom
Interpretation : The above pie chart shows that : Maximum people goes for online training i.e. 60% 40% people goes for classroom training.
Q.6 How many Financial Advisors are generally recruited by the company (at the Aundh Branch)? Sr. No. 1 2 3 4 TOTAL No. >10 10>25 25>50 50>60 No. of respondent 05 60 15 20 100
05% 20% 15% 60%
>10 10>25 25>50 50>60
Interpretation : o 60% of the respondent the recruitment is generally between 10-25 people. o 15% says that the number is generally between 25-60. o 20% says that the number vary between 50-60. o Remaining 5% says that it is less than 10.
Q.7 Do the recruited people do have the knowledge of insurance sector? Sr. No. 1 2 Reply of respondents Yes No TOTAL No. of respondent 62 38 100
Awareness about the Insurance Sector
38% Yes 62% No
Interpretation : From the total respondents around 62% of the total respondents were knowing about the Insurance Sector. Around 38% of the respondents were very much clear about this industry.
Q.8 Are you satisfied with the test conducted by the IRDA department ? Sr. No. 1 2 3 Reply of the respondents Yes No Can’t say TOTAL No. of respondent 69 20 11 100
11% 20% Yes No 69% Can’t say
Interpretation : From the collected data it gives impression that the most of the respondent are satisfied with the test conducted by the IRDA department i.e.69%. 11 % are still coufsued. And only 20 % of the respondent are not satisfied with the procedure.
Q.9 Do all the recruited people continue working as Financial Advisor? Sr. No. 1 2 3 Reply of the respondents Yes No Can’t say TOTAL No. of respondent 69 20 11 100
11% 20% Yes No 69% Can’t say
Interpretation : 69% of the recruited people continue working as Financial Advisor. 20% of the recruited people donot continue. 10% of the recruited were not sure whether they will continue or not.
Q.10 What is the average work experience of Financial Advisor in HDFC STANDARD LIFE? Sr. No. 1 2 3 Average Experience No experience Less than 2 yrs More than 2 yrs TOTAL No. of respondent(%) 32 22 46 100
No experience Less than 2 yrs More than 2 yrs
Interpretation : 46% are having more than 2 yrs experience. 32% are not having experience. 22% are having less than 2 yrs experience.
Q.11 Who are mostly appointed for the post of Financial Advisor? Sr. No. 1 2 3 4 5 6 Name of the company Banking & Finance Medical Science IT Lawyer Teacher Other TOTAL No. of respondent 51 12 10 11 12 14 100
13% 11% 46%
Banking & Finance Medical Science IT Lawyer Teacher 11% Other
Interpretation : The above pie chart shows that out of interested prospects 46% are from Banking & Finance. 11% are from Medical Science. 9% are from IT. 10% are from lawyer.
13% are from other field 11% are teacher.
Q.12 Do everyone attend 21 days training program ? Sr. No. 1 2 3 Reply of the respondents Yes No Can’t say TOTAL No. of respondent 37 35 28 100
attendance for training
Yes No Can’t say
Interpretation : The above pie chart shows that out of interested prospects From the total contacted person 35% of the respondents were not in favour of attending the training program for 21 days. 28% of the respondents were not able to comment & 37% of them were confident about attendance. 66
Q.13 Why one generally want to join HDFC STANDARD LIFE as Financial Advisor ? Sr. No. 1 2 3 Reason for joining Pinnacle Program Extra Income No Capital TOTAL No. of respondent 19 58 23 100
Interpretation : It can be seen from the above pie chart that out of advisors in the process 58% of the respondents wants to join the company for earning extra income. 23% of the respondents had given the reason of no capital investment 19% have joined because of pinnacle programme.
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. Research shows that the Financial Advisors generally belong to the age of 30-50 years It is found that the company provides both types of training and mainly prospects goes for the online training.
Every year company recruits as many as 50 Advisors in order to increase the sales force of the company. Most of the recruited people are aware of the insurance sector and the person who are not aware of the insurance sector are made aware through the training before sitting for the test. It has been found through the studies that most of the candidate recruited belongs the banking and insurance sector . It means that they are having some knowledge about the insurance sector. For most of the prospects attending 21 days training is a major problem. As the timings for the training are full time 10:30 am to 5.00 p.m. For most of the prospects they join HDFC STANDARD LIFE for the extra income. Most of the recruited people continue working as a Financial Advisor.
1) This Project Report is restricted only for the interviewed people. 2) Biased reply of the respondents like giving wrong information. 3) Non availability of the data or the relevant information of the respondent. 4) Sometimes it happens that the respondent was busy so as to get the information it becomes difficult 5) The project is done in near by areas of the Aundh Branch of the company & therefore findings of it may not be applicable in other areas. 6) Time Constraints – The duration of the project is only 2 months. In this duration we have to finish the project so the sample size considered for this project is also limited which may give some misleading outputs.
7) Although ICICI Prudential is a well known brand, it invests heavily in the advertisements, but somehow the concept of financial advisor was not known to the customers and it requires great amount of efforts to convince the various benefits to them.
1. It is found that in the last five years the Indian economy has progressed, which has increased the average purchasing power & the insurance sector has contributed significantly in this. 2. Since last five to six years many Private Company has entered in insurance sectors & because of which the Indians are having number of options in front of them investing their money & to safeguard the life. 3. While doing this project it is found that recruiting of the advisor is done by the Unit Manager, and the parameters on which the advisors are to be recruited are : • Income Level – 1.2lacs to 2 lacs per annum • Marital Status – Married • Age – above 25 years • Minimum Education – Graduation • Staying in the same city for more than 5 years 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 – 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.
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.
CHAPTER 11 BIBLIOGRPHAYA
WEBSITES : BOOKS :
1) HUMAN RESOURCE MANAGEMENT 2) PERSONNEL MANAGEMENT 3) RESEARCH METHODOLOGY
: : :
SHASHI K. GUPTA C. B. MAMORIAL C.R.KOTHARI
JOURNALS & ARTICLES : 1) IRDA JOURNAL 2) BROUCHERS & REPORTS OF COMPANY
CHAPTER -11 ANNEXURE
QUESTIONNAIRE “RECRUITMENT AND SELECTION OF FINANCIAL ADVISORS “
Name: Age : Address : Phone No. : Email Id : 77 Mobile No. : Sex :
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
Q3. Which age group of people are generally forms the majority as a Financial Advisor? •25-30 years •30-50 years •50-65 years Q4. Which kind of trainings are generally provided by the ICICI Prudential for the Advisors ( which is compulsory by the IRDA before sitting for the test)? r
•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 •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 79
•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 •Less than 2 years
Q11. Who are mostly appointed for the post of Financial Advisor? •Banking & Finance •Medical Science •IT 80
•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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