CHAPTER - 1

INTRODUCTION

1.1 About the Industry

Banking is nearly as old as civilization. The history of banking could be said to have started with
the appearance of money. The first record of minted metal coins was in Mesopotamia in about
2500B.C. the first European banknotes, which was handwritten appeared in1661, in Sweden.
Cheque and printed paper money appeared in the 1700s and 1800s, with many banks created to
deal with increasing trade.
The history of banking in each country runs in lines with the development of trade and industry,
and with the level of political confidence and stability. The ancient Romans developed an
advanced banking system to serve their vast trade network, which extended throughout Europe,
Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word
ban co, meaning bench, because moneylenders worked on benches in market places. The bank
of Venice was established in 1171 to help the government raise finance for a war.
At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their
safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with
the metal itself staying under lock and key. The goldsmith realized that they could lend out some
of the gold and silver that they had and charge interest, as not all of the merchants would ask for
the gold and silver back at the same time. Eventually, instead of charging the merchants, the
goldsmiths paid them to deposit their gold and silver.
The bank of England was formed in 1694 to borrow money from the public for the government
to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England
notes of their own receipts. New technology transformed the banking industry in the 1900s
round the world, banks merged into larger and fewer groups and expanded into other country.

1.1.1 Indian Banking System

Reserve Bank of India

Schedule Banks

State co-op
Banks

Non-Schedule Banks

Central co-op
Banks and
Primary Cr.
Societies

Commercial
Banks

Indian

Public Sector
Banks

State Bank of India

and its
Subsidiaries

Commercial Banks

Foreign

Private Sector
Banks

Other Nationalized
Banks

Figure 1.1 Indian Banking System

HDFC,
ICICI etc.

Regional Rural
Banks

1.2 About organization

1.2.1 HDFC Bank
HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to
accomplish the vision of becoming a world-class Indian bank. HDFCs business philosophy is
based on four core values - Customer Focus, Operational Excellence, Product Leadership and
People. They believe that the ultimate identity and success of bank will reside in the exceptional
quality of people and their extraordinary efforts. For this reason, they are committed to hiring,
developing, motivating and retaining the best people in the industry. HDFC is better:
1. Investment returns: investment returns and business growth provided by HDFC is validated
by Bajaj Capital report. HDFC pacify the need of invertors up to healthy level and make the
strong relationship with them.
2. Financial Background and Experience: HDFC existing in the market since 1977. It has a very
handsome experience in the field of finance because it completely involved in finance Sector
only where as the others are running in many other field also like Reliance (Petroleum,
Textile, Telecom etc.)
3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false
selling and prohibit the false commitment to the customer.
4. Sales Force: Properly trend licensed and Educated People are the strength of the company.
So that they could give the best customer service.
5. Huge branch network HDFC is having 450 branches in all over the country.
6. Online accessibility: It makes the process faster and make the customer delighted.
1.2.1.1 Mission and Business Strategy:
Mission of HDFC is to be "a World Class Indian Bank", benchmarking themselves against
international standards and best practices in terms of product offerings, technology, service
levels, risk management and audit & compliance. The objective is to build sound customer
franchises across distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy growth in profitability,
consistent with the Bank's risk appetite. They are committed to do this while ensuring the highest
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levels of ethical standards, professional integrity, corporate governance and regulatory

compliance.
Business strategy of HDFC emphasizes the following:
i. Increase market share in Indias expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.
ii. Leverage technology platform and open scalable systems to deliver more products to more
customers and to control operating costs.
iii. Maintain the current high standards for asset quality through disciplined credit risk
management.
iv. Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.
v. Continue to develop products and services that reduce cost of funds
vi. Focus on high earnings growth with low volatility.
1.2.1.2 Products of HDFC Bank
Account & Deposits Service:
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a
customer's need and occupational status, we have a range of solutions that are second to none.
Whether you're employed in a company and need a simple Savings account or run your own
business and require a robust banking partner, HDFC Bank not only has the perfect solution for
you, but also can recommend products that can augment your planning for the future.
It includes these services: i. Saving accounts.
ii. Current accounts.
iii. Fix deposits.
iv. Demate account.
v. Safe deposits lockers.
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i. Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future, accumulating
funds over a period of time. Whatever persons occupation, bank have confident that person will
find the perfect banking solution. There some saving accounts like:

Regular Saving Account

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and
withdraw cash. Check up on your balances from the comfort of your home or office through Net
Banking, Phone Banking and Mobile Banking.

Saving Plus Account

Introducing the best banking option for you with HDFC Bank Savings plus Account. Now you
can get access to some of the finest banking facilities with HDFC Bank's Savings plus Account.
All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded with maximum
benefits to make your banking experience a pleasure. By maintaining an average quarterly
balance of just Rs. 25,000/- you get a host of premium services from HDFC Bank absolutely
free.
ii. Salary Accounts
In this account customer can get salary from where he/she doing such job and organization or
company at where the customer of the bank in doing job deposit their salary in to the salary
account a person can get salary.
There are various kinds of saving accounts in the HDFC Bank like:

Pay roll account.

Classic salary account.

Regular salary account.

Premium salary account.

Defence salary account.

No frills salary account.

Reimbursement salary account.

iii. Kids Advantage Account

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Start saving for your child today and secure his/her future a sentence tells by the HDFC bank.
Open a Savings Account and transfer money every month into customers Kids Advantage
Account and watch the savings grow as customers child grows. The accumulated savings in the
Kids Advantage Account can over the years help in meeting customer child's needs.
iv. Current Accounts
HDFC Bank Current Account gives the power of inter-city banking with a single account and
access to more than one cities. From special cheques that get treated at par with local ones in any
city where branch, faster collection of outstation cheques (payable at branch locations), free
account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up
to 100 lakhs per month, banks priority services have become the benchmark for banking
efficiency.
Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking.
Person can have the power of multi-location access to his account from any of our 761 branches
in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his
office or home without stepping out.
1.2.1.3 Government Sector
HDFC Bank acts as an active medium between the government and the customers by means of
various services. These services include:
i. Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes
and Sales Tax collections at their local HDFC Bank.
ii. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket
online and get it home delivered.
iii. Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses,
thus facilitating imports for the Government.
iv. Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli
Municipal Corporation, is undertaken by the Bank.
v. Collection of stamp duty is done via franking mode in the state's of Maharashtra & Gujarat.
vi. The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort,
Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri, Pune(FC Road),
Kolhapur, Nagpur, Pimpri.
vii. The Stamp Duty Franking Facility is available at following branches in Gujarat
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viii.

Disbursement of Pension to retired Employees of Central Govt and Defence is directly

done by HDFC Bank along with the disbursement of pension to the members of EPFO
(Employees Provident Fund Organisation).
ix. Electronic Collection of fees on behalf of DGFT is done by the bank too.
1.2.1.4 Business focus
HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail
Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for
providing working capital finance, trade services, corporate finance, and merchant banking. It is
also providing sophisticated product structures in areas of foreign exchange and derivatives,
money markets and debt trading and equity research.
i. Wholesale banking services:
Blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and
agri-based businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of for its corporate
customers, mutual funds, stock exchange members and banks.
ii. Retail banking services:
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the Master card Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2009, the bank had a total card base (debit and
credit cards) of over 13 million. The Bank is also one of the leading players in the merchant
acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill
Payments, etc. With Finest of Technology and Best of Man power in Banking Industry HDFC
BANK's retail services have become by and large the best in India and since the contribution to
CASA i,e total number of current and savings account of more than 50% ,HDFC BANK has full
potential to become Indias No.1 Private Sector Bank. HDFC Bank website including
hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of HDFC Bank.
Customers of the HDFC Bank are requested to check the website availability 24 X 7 and if
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available can do the transaction. If the website is not available they are asked to visit their home
branch.
iii. Treasury:
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. These services are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.
1.2.1.5 Distribution network
HDFC Bank is headquartered in Mumbai and has a nationwide network of 2201 branches spread
in 1174 towns and cities across India. The Bank also has 7,110 networked ATMs.

1.2.2 ICICI BANK

ICICI Bank was established in 1996 by the Industrial Credit and Investment Corporation of
India, an Indian financial institution, as a wholly owned subsidiary. The parent company was
formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and publicsector insurance companies to provide project financing to Indian industry. The bank was
initially known as the Industrial Credit and Investment Corporation of India Bank, before it
changed its name to the abbreviated ICICI Bank. The parent company was later merged into
ICICI Bank. ICICI Bank launched internet banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998, followed by an equity offering in the form of American Depositary
Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock
deal in 2001, and sold additional stakes to institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
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In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with
its five million American depository shares issue generating a demand book 13 times the offer
size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ATM's and branches in some
locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of India
issued a clarification on the financial strength of ICICI Bank to dispel the rumors.
1.2.2.1 Financial Sector Overview
i. The past year saw the process of financial sector reforms being carried forward with
particular focus on banks and financial institutions. Considerable attention was given to
asset classification and provisioning norms in banks.
ii. RBI announced guidelines on universal banking to facilitate the transformation of financial
institutions into banks.
iii. It also granted licenses for two new private sector banks and reduced the cash reserve ratio
in October 2001 and April 2002, bringing it down to 5.0%.
iv. The Union Budget for fiscal 2003 provided for higher tax deduction on provisions for bad
debts. It also proposed the enactment of new legislation for banking sector reforms and
foreclosure laws. The Union Budget also permitted incorporation of subsidiaries by foreign
banks.
v. The Securitization and Reconstruction of Financial Assets and Enforcement of Security
Interest Ordinance, 2002 has significantly strengthened the ability of lenders to resolve nonperforming assets by granting them greater rights as to enforcement of security and recovery
of dues. The setting up of a pilot asset reconstruction company is also expected to facilitate
faster resolution of non-performing assets in the financial system.
1.2.2.2 Merger of ICICI with ICICI Bank

i. ICICI Bank and ICICI, along with other ICICI group companies, were operating as a
virtual universal bank, offering a wide range of financial products and services.
ii. The merger of ICICI and two of its subsidiaries with ICICI Bank has combined two
organizations with complementary strengths and products and similar processes and
operating architecture.
iii. The merger has combined the large capital base of ICICI with the strong deposit raising
capability of ICICI Bank, giving ICICI Bank improved ability to increase its market share in
banking fees and commissions, while lowering the overall cost of funding through access to
lower-cost retail deposits.
iv. ICICI Bank would now be able to fully leverage the strong corporate relationships that
ICICI has built, seamlessly providing the whole range of financial products and services to
corporate clients.
v. The merger has also resulted in the integration of the retail finance operations of ICICI, and
its two merging subsidiaries, and ICICI Bank into one entity, creating an optimal structure
for the retail business and allowing the full range of asset and liability products to be offered
to all retail customers.
1.2.2.3 Business Review

i. Retail Banking:
The retail business is the key driver of ICICI Banks growth strategy, with the objective of
diversifying the asset portfolio and building a low-cost stable resource base. With a complete
product suite across both asset and liability products as well as a wide range of banking
services, ICICI Bank is today a retail financial supermarket with the ability to cross-sell the

entire range of credit and investment products and other banking services to our customers.
The key dimensions of our retail strategy are products, channels and processes, underpinned

by a strong customer focus.

Changing demographics and the trend towards upward migration in income levels coupled
with existing low retail credit penetration levels have created a major growth opportunity in

retail finance.
ICICI Banks retail assets business is capitalizing on this opportunity with a competitive
positioning and strategy comprising innovative products, wide distribution, strong credit
controls and high customer service standards and rapidly growing volumes in each segment
to achieve economies of scale.

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ICICI Banks retail portfolio (including the portfolio of ICICI Home Finance Company
Limited, its wholly-owned subsidiary) at March 31, 2002 was over Rs. 76.00 billion, as
compared to the combined retail portfolio of ICICI and ICICI Bank of about Rs. 29.00 billion
at March 31, 2001. Our retail asset products include mortgages, automobile and two-wheeler
loans, commercial vehicles and construction equipment financing, consumer durable loans,

personal loans and credit cards.

ii. Corporate Banking:
ICICI Banks corporate banking strategy is based on providing customized financial

solutions to clients, tailored to meet their specific requirements.

The corporate banking strategy focuses on careful management of credit risk and adequate
return on risk capital through risk-based pricing and proactive portfolio management, rapid
growth in fee-based services and extensive use of technology to deliver high levels of

customer satisfaction in a cost effective manner.

Our focus in fiscal 2002 was on expanding the range and depth of our corporate
relationships, acquiring new clients and cross-selling all our corporate banking products and

services to the existing client base.

We continued to focus on working capital finance for highly-rated clients, structured

transactions and channel financing.

We focused strongly on transaction banking services such as cash management and nonfund-based facilities such as letters of credit and bank guarantees to increase our market

share in banking fees and commissions.

We have already achieved significant success in cash management services, with total
volumes of Rs. 1.72 trillion for fiscal 2002. We also targeted high value current accounts to
reduce our cost of funding. We implemented a customer-level profitability-based pricing
mode.

1.2.2.4 Creation of market infrastructure in India

ICICI Bank has contributed to set up different institutions which include the following:
i. National Stock Exchange
The National Stock Exchange was promoted by Indias leading financial institutions (including
ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a

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nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to
investors all over the country through an appropriate communication network.
ii. Credit Rating Information Services of India Limited
In 1987, ICICI Ltd. along with UTI set up CRISIL as India's first professional credit rating
agency. CRISIL offers a comprehensive range of integrated products and service offerings which
include credit ratings, capital market information, industry analysis and detailed reports.
iii. Credit Information Bureau of India Limited
ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL),
Indias first national credit bureau in 2000. CIBIL provides a repository of information (which
contains the credit history of commercial and consumer borrowers) to its members in the form of
credit information reports. The members of CIBIL include banks, financial institutions, state
financial corporations, non-banking financial companies, housing finance companies and credit
card companies.
iv. ICICI Lombard:
ICICI Lombard was among the first companies to make their insurance products available
online in India. ICICI Lombard has web-based systems to meet all pre and post-policy
transactional needs of its customers. One can compare plans, get quotes, buy, renew and
keep a track of their insurance policies online. ICICI Lombard has developed a web-based
system to meet all the pre and post-policy transaction. One can get quotes, buy, renew and

track their policies online through the website.

ICICI Lombard offers its customers retail general insurance products online. These products
are Car Insurance, Two Wheeler, Health Insurance, Travel Insurance, Student Travel,

Personal Accident and Home Insurance.

ICICI Lombard was the first general insurance company in India to start telesales operations
due to its inherent profitability. However in recent times, public outburst against pushy and
intrusive telecalling in general has led to a reduction in cold calling and the introduction of
'do-not-call' (opt-out) lists similar to the US 'Do Not Call Registry'. ICICI Lombard too has
the Do Not Call option and respects the privacy of their customers.

v. ICICI Prudential

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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one of
the foremost financial services companies of India and Prudential plc, one of the leading

international financial services group headquartered in the United Kingdom.

Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been
one of the earliest private players. Since the time, ICICI Pru Life has been the leader in terms
of market share as indicated by the IRDA (Insurance Regulatory and Development Authority,

the regulator for Indian Insurance Industry) at its website.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK
Healthcare to settle insurance claims of its users.
ICICI Prudential's life insurance products may be loosely categorized under four forms- Life
Plans (further categorized into Term Plans and Wealth Plans), Child Plans, Retirement Plans

and Health Plans.

Under Life Insurance Plan category it offers term plans like i-Protect online term plan, ICICI
Pru Pure-Protect and ICICI Pru Life Guard, and ULIP wealth plans like ICICI Pru Life Stage
Wealth II, ICICI Pru Life Link Wealth SP, ICICI Pru Pinnacle Super etc.

1.2.2.5 Subsidiaries, Mergers & Acquisition of ICICI

Domestic subsidiaries:
i. ICICI Lombard
ii. ICICI Prudential Life Insurance Company Limited
iii. ICICI Securities Limited
iv. ICICI Prudential Asset Management Company Limited
v. ICICI Venture
vi. ICICI Home Finance
vii. ICICI direct.com
International subsidiaries:
i. ICICI Bank UK PLC
ii. ICICI Bank Canada
iii. ICICI Bank Eurasia LLC
Acquisitions:

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i. 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

ii. 2007: Sangli Bank
iii. 2010: Bank of Rajasthan

CHAPTER 2
TOPIC INTRODUCTION & LITERATURE REVIEW
2.1 About the Topic
Recruitment
Recruitment is a process of searching for prospective candidates for the given job in the industry.
As we know it is very important for an industrial concerns to have efficient and effective
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personnel with right quality and at right time and at right place available whenever they are
needed. Every organization needs employee time by time because of promotion or retirement of
an employee. For this purpose an organization need to search for the right candidate. And so it
needs to encourage this type of right candidates whenever they require.
To understand recruitment in simple terms it is understood as process of searching for obtaining
applications of job from among from whom the right people can be selected. To define
recruitment we can define it formally as it is a process of finding and attracting capable
applicants for employment. The process begins when new recruit are sought and ends when their
application are submitted.
The result is a pool of applicants from which new employees are selected. Theoretically,
recruitment process is said to end with receipt of application in practice the activity extends to
the screening applicants as to eliminate those who are not qualified for job.
2.1.1 Purpose and Importance of recruitment
The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes are to:
1. Determine the present and future requirement of the organization in conjunction with its
personnel planning and job analysis activities;
2. Increase the job pool of job candidates at minimum cost;
3. Help increase the success rate of the selection process by reducing the number visibly under
qualified or job application;
4. Help reduce the probability that job applicants, once recruited selected, will leave the
organization only after a short period of time;
5. Meet the organizations legal and social obligation regarding the composition of its workforce;
6. Being identifying and preparing potential job applicants who will be appropriate candidates;
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7. Increase organization individual effectiveness in the short term and long term;
8. Evaluate the effectiveness of various recruiting technique and sources for all types of job
applicants.
2.1.2 Factors Affecting Recruitment
There are a number of factors that affect recruitment. These are broadly classified into two
categories: I. Internal factors II. External factors
I. Internal Factors
The internal factors also called as Endogenous Factors are the factors within the organization
that affect recruiting personnel in the organization. Some of these are:
i. Size of the organization
The size of the organization affects the recruitment process. Larger organization finds
recruitment less problematic than organization with smaller in size.
ii. Recruiting policy
The recruitment policy of the organization i.e. recruiting from internal sources and external
sources also affect the recruitment process. Generally, recruitment through internal sources is
preferred, because own employees know the organization and they can well fit in to the
organization culture.
iii. Image of the organization
Image of the organization is another factor having its influence on the recruitment process of the
organization. Good image of the organization earned by the number of overt and covert action by
management helps attract potential and complete candidates.

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Managerial actions like good public relations, rendering public service like building roads, public
parks, hospitals and schools help earn image or goodwill for organization. That is why chip
companies attract the larger numbers of application.
iv. Image of the job
Better remuneration and working conditions are considered the characteristics of good image of
a job. Besides, promotion and carrier development policies of organization also attract potential
candidates.
II. External Factors
Like internal factors, there are some factors external to organization, which have their influence
on recruitment process. Some of these are given below:
i. Demographic factors
As demographics factors are intimately related to human beings, i.e. employees, these have
profound influence on recruitment process. Demographic factors include age, sex, Literacy,
economics status etc. Labor market Labor market condition i.e. supply and demand of labor is of
particular importance in affecting recruitment process. E.g. if the demand for specific skill is
high relative to its supply is more than for particular skill, recruitment will be relatively easier.

ii. Unemployment situation

The rate of unemployment is yet another external factor its influence on the recruitment process.
When the employment rate in an area is high, the recruitment process tends to simpler. The
reason is not difficult to seek. The number of application is expectedly very high which makes
easier to attract the best-qualified applications. The reserve is also true. With low rate of
unemployment, recruiting process tend to become difficult.
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iii. Labor laws

There are several labor laws and regulations passed by the central and state governments that
govern different type of employment. These cover working condition, compensation, retirement
benefits, safety and health of employee in industrial undertakings.
iv. Child Labour Act, 1986
For example prohibits employment of children in certain employments. Similarly several other
acts such as

The Employment Exchange Act,1958

The Apprentice Act, 1961
The Factory Act,1948
The Mines Act, 1952

These act deal with recruitment. Legal consideration another external factor is legal
consideration with regard to employment reservation of jobs for schedule tribes, and other
backward class (OBC) is the popular examples of such legal consideration. The supreme court of
India has given its verdict in favor of 50 per cent of jobs and seats. This is so in case admission
in the educational institutions also

2.1.3 Sources of Recruitment

I. Internal Sources of Recruitment
i. Present employees:
Promotions and transfer from among the present employees can be good sources of recruitment.
Promotion implies upgrading of an employee to a higher position carrying higher status, pay and
responsibilities. Promotion from among the present employees is advantageous because the
employees promoted are well acquainted with the organization culture, they get motivated and it
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is cheaper also. Promotion from among the person employees also reduces the requirement of
job training.
However, the disadvantage lies in limiting the choice of the few people and denying hiring of
outsiders who may be better qualified and skilled. Furthermore, promotion from among present
employees also results in inbreeding, which creates frustration among those not promoted.
ii. Transfer:
Transfer refers to shifting an employee from one job to another without any change in the
position/post, status and responsibilities. The need for transfer is felt to provide employees a
broader and carried base, which is considered necessary for promotion. Job rotation involves
transfer of employees from one job to another job on the lateral basis.
iii. Former employees:
Former employees are another source of applicant for vacancies to be filled up in the
organization. Retired or retrenched employees may be interested to e come back the company to
work on the part time basis. Similarly, some former employees who had left the organization for
any reason, any come back to work. This source has the advantages of hiring people whose
performance is already known to the organization.
iv. Employee referrals:
This is yet another internal source of recruitment. Some of these are:

The existing employees refer to the family members, friends and relatives to the company

potential candidates for the vacancies to be filled up in the organization.

This source serves as the most effective methods of recruiting people in the organizations
because refer to those potential candidates who meet the company requirement known to

them from their own experience.

The referred individuals are expected to be similar in type in the of race and sex, for
example, to those who are already working in the organization.

v. Previous applicant:
This is considered as internal source in the sense that applications from the potential candidates
are already lying with organization. Sometimes the organization contacts though mail or
messengers these applicants to fill up the vacancies particularly for unskilled or semiskilled jobs.
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2.1.3.1 Evaluation of Internal Sources

Let us, evaluate the internal source of recruitment. Obviously, it can be done in terms of its
advantage and disadvantage the same are spelled out as follows:
Advantages
The advantages of the internal source of recruitment include the following:
i. Familiarity with own employees:
The organization has more knowledge and familiarity with the strengths and weaknesses of its
own employees than of strange on unknown outsiders.
ii. Better use of the talent:
The policy of internal recruitment also provides an opportunity to the organization to make a
better use of talents internally available and to develop them further and further. Economical
recruitment: In case of internal recruitment, the organization does not need to spend much
money, time and effort to locate and attract the potential candidates. Thus, internal recruitment
proves to be economical, or say, inexpensive.

iii. Improves morale:

This method makes employees sure that they would be preferred over the outsiders as and when
they filled up in the organization vacancies.
iv. A Motivator:
The promotion through internal recruitment serves as a source of motivation for the employees to
improve their carrier and income. The employees feel that organization feel that organization is a
place where they can build up their life- long career. Besides, internal recruitment also serves as
a means of attracting and retaining employees in the organization.
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Disadvantages
The main drawback associated with the internal recruitment is as follows:
i. Limited choice:
Internal recruitment limits its choice to the talents available within the organization. Thus, it
denies the tapping of talents available in the vast labor market outside the organization.
Moreover, internal recruitment serves as a means for inbreeding, which is never healthy for the
future organizations.
ii. Discourage competition:
In this system, the internal candidates are protected from competition by not giving opportunity
to otherwise competent candidates from outside the organization. This in turn, develops a
tendency among the employees to take the promotion without showing extra performance.
iii. Stagnation of skills:
With the feeling that internal candidates will surely get promoted, their skill in the long run may
become stagnant or obsolete. If so, productivity and sufficiency of the organization, in turn,
decreases.
iv. Creates conflicts:
Conflicts and controversies surface among the internal candidates, whether or not they deserve
promotion.
II. External Sources of Recruitment
External sources of recruitment lie outside the organization. These outnumber internal sources.
The main ones are listed as follows:
i. Employment exchanges:
The national commission labor (1969) observed in its report that in the pre- independence era,
the main source of labor war rural areas surrounding the industries. Immediately after
independence, national employment services were established to bring employer and job seeker
together. In response to it, the compulsory notification of vacancies act of 1959 (Commonly
called employment exchange act) was instituted which become operative in 1960.
21

The main functions of these employment exchanges with the branches in most cities are
registration of job seeker and tier placement in the notified vacancies. It is obligatory for
employer to inform about the outcome of selection within 15 days to the employment exchange.
Employment exchange is particularly useful in recruiting blue-collar, white- collar and technical
workers.
ii. Employment agencies:
In addition to the government agencies, there are number of private agencies that register
candidates for employment and furnish a list of suitable candidates from the data bank as and
when sought by the prospective employer. Generally, these agencies select personnel for
supervisory and the higher levels.
The main function of these agencies is to invite application and short-list the suitable candidates
for the organization. Of course, the representative of the organization takes the final decision on
selection. The employer organizations derive several advantages through this source. The time
saved in this method can be better utilized elsewhere by the organization. As the organizational
identity remains unknown to the job speakers, it, thus, avoid receiving letters and attempts to
influence.
III. Other Sources of Recruitment

Personal data of candidates and data bank maintain by the HR department.

Campus Recruitment.

Companys own website.

Placement consultants.

Advertisement in the news papers.

2.1.4 Methods of Recruitment

Recruitment methods refer to the means by which an organization reaches to the potential job
seeker. It is important to mention that the recruitment methods are different from the resources of
recruitment. The major line of distinction between the two is that while the former is the means
of establishing links with the prospective candidates, the latter is location where the prospective
employees are available.
22

Dunn and Stephen have broadly classified methods of recruitment into Third Party Indirect
Method; Direct Method; three categories. Brief descriptions of these are follows:
i. Direct Method:
In this method, the representatives of the organizations are sent to the potential candidates in the
educational and training institutes. They establish contacts with the candidates seeking jobs.
Person pursuing management, engineering, medical, etc. programmers are mostly picked up the
manner.
ii. Indirect Method:
Indirect methods include advertisements in the newspaper, on the radio and television, in
professional journals, technical magazines, etc. This method is useful when Organization dose
not find suitable candidates to be promoted to fill up the higher posts, When the organization
want to reach out a vast territory, and When organization wants to fill up scientific, professional
and technical posts.
iii. Third Party Method:
These include the use of private employment agencies, management consultants, professional
bodies pr associations, employee referral or recommendation, voluntary organization, trade
banks, labor contractors, etc., to establish contact with the job seekers.
2.2 Recruitment Process
7 Steps to Effective Recruitment Having the right person, in the right place, at the right time, is
crucial to organizational performance. Therefore recruitment is a critical activity and should
incorporate the following steps:
Step 1 - Whats the job?
Gather information about the nature of the job. Think about:

The content (such as the tasks) making up the job

The jobs purpose
The outputs required by the job holder
How it fits into the organizations structure
The skills and personal attributes needed to perform the role effectively.

This analysis can form the basis of a job description and person specification.
23

Step 2 - Prepare a job and person profile

A person specification or job profile states the necessary and desirable criteria for selection.
Increasingly such specifications are based on a set of competencies identified as necessary for
the performance of the job. Include:

skills, aptitude, knowledge and experience

qualifications (which should be only those necessary to do the job - unless candidates are
Recruited on the basis of future potential, for example graduates) personal qualities relevant
to the job, such as ability to work as part of a team.

The document formed from the person specification can then be used to inform the criteria you
use to shortlist applicants.
Step 3 Finding candidates
Internal methods:

Staff referrals
Succession planning
Job sharing

It is important not to forget the internal talent pool when recruiting. Providing opportunities for
development and career progression is an important factor for employee retention and
motivation.
External methods: There are many options available for generating interest from individuals
outside the organization.

Online recruitment
Press advertising
Networking
Open days

Advertising remains the most common means of attracting and recruiting. Advertisements should
be clear and indicate the:

requirements of the job

necessary and the desirable criteria for job applicants (to limit the number of inappropriate

applications received)
nature of the organizations activities
job location
reward package
job tenure (for example, contract length)
24

details of how to apply.

Advertisements should be genuine and relate to a job

that actually exists. They should appeal to all sections
of the community using positive visual images and
wording.
Step 4 - Managing the application process
There are two main formats in which applications are
likely to be received: the curriculum vitae (CV) or
application form. It is possible that these could be
submitted either on paper or electronically and the use
of e-applications (Internet, intranet and email) is now
part of mainstream recruitment practices
Application forms
Application forms allow for information to be presented in a consistent format, and therefore
make it easier to collect information from job applicants in a systematic way and assess
objectively the candidates suitability for the job. Be aware that application form design is also
important under the Disability Discrimination Act 1995, it may be necessary to offer application
forms in different formats.
CVs
The advantage of CVs is that they give candidates the opportunity to sell themselves in their
own way and dont have the restrictions of fitting information into boxes as often happens on an
application form. However, CVs make it possible for candidates to include lots of additional,
irrelevant material which may make them harder to assess consistently.
Step 5 - Selecting candidates
Selecting candidates involves two main processes: short listing and assessing applicants to
decide who should be made a job offer.
Short listing
The process of short listing involves slimming down the total number of applications received to
a shortlist of candidates you wish to take forward to the more detailed assessment phase of the
selection process.
When deciding who to shortlist, it is helpful to draw up a list of criteria using the person
25

specification. Each application can then be rated according to these standards, or a simple
scoring system can be used.
Assessment
A range of different methods can be used to assess candidates. These vary in their reliability as a
predictor of performance in the job and in their ease and expense to administer. Typical methods
include:

General interview
Competency based interview
In tray exercise
Role play
Presentation

Step 6 - Making the appointment

Before making an offer of employment, employers have responsibility for checking that
applicants have the right to work in the UK and to see and take copies of relevant documentation
- a list of acceptable documents demonstrating the right to work in the UK is available from the
Home Office
Contract
Offers of employment should always be made in writing. But it is important to be aware that an
oral offer of employment made in an interview is as legally binding as a letter to the candidate.
References
A recruitment policy should state clearly how references will be used, when in the recruitment
process they will be taken up and what kind of references will be necessary (for example, from
former employers). These rules should be applied consistently.
Medical examinations
It is reasonable to require completion of a health questionnaire where good health is relevant to
the job. Any particular physical or medical requirement should be made clear in the job
advertisement or other recruitment literature.
Step 7 Induction

Induction is a critical part of the recruitment process, for both employer and new

employee. An induction plan should include:

Orientation (physical) - describing where the facilities are
Orientation (organizational) - showing how the employee fits into the team and how their
26

role fits with the organizations strategy and goals

Health and safety information - this is a legal requirement
Explanation of terms and conditions

Details of the organizations history, its products and services, its culture and values. A clear
outline of the job/role requirements.
2.3 RECRUITMENT PROCESS (HDFC)
Introduction :
Recruiting and selecting the right people is paramount to the success of the HDFC BANK LTD.
and its ability to retain a workforce of the highest quality. This recruitment and selection policy
sets out the procedure to ensure that the best people are recruited on merit and that are the
recruitment process is free from bias and discrimination.
Principles :
Following

are

the

guiding

principles

for

recruitment

and

on-boarding

process.

Attracting and recruiting the right people is one of the most important activities of the
organization and is the responsibility to be owned by each and every employee of the
organization.
Merit will be the single most important factor in selection process.
They will ensure a diversity, both gender and ethnicity by targeted candidate sourcing with the
help of recruitment vendors and the referral program.
While skills and profile matching play an important role, they will hire people who are team
players and have the right attitude most relevant to the culture of the organization. Attitude is as
important as aptitude.
They believe in becoming a company of giants and emphasis is in hiring people who can grow
bigger and better than they presently are.
They believe in providing their employee with fulfilling career paths. Towards this, they will
post vacancies internally as a preferred option while evaluating external candidates.
They believe that each candidate interviewed irrespective of whether she/he is selected should
become a friend of the organization. They treat all the candidates with the utmost respect. They
will be open and fair in communication with them; this way they also enhance the brand image
of the organization.
They will continuously assess, identify and cultivate strategic talent pools including those at the
27

universities, management schools, and community forums to address their long term needs.
Hiring Approval:
All recruitment activities shall be undertaken based on the hiring plan as approved by the
Business Head, HR Head & the CEO. For each approved position, a hiring requisition will be
required prior to initiation of any recruitment activity. If the hiring was not included in the
planned budget, it will also require approval from the CEO based on a recommendation from the
Head HR and the CFO.
Recruitment expense will be allocated to the concerned business unit, and expenditure should
be

budgeted

and

pre-approved

by the

business

unit

head

and

the

HR

Head.

Candidate Sourcing:
The hiring manager along with the Human Resource Department would decide the channel /
source to use based on the nature of the recruitment. The following sources of recruitment may
be considered:

i. Internal Sources:
Whenever any vacancy arises, the possibility of fulfilling the requirement internally via
reassignment and relocation, re-allocation of the responsibilities or internal promotion will be
explored by the hiring function along with the HR Department.
Internal job postings to explore internal candidates.
ii. Employee Referrals HDFC will encourage employees to refer suitable candidates for open
positions.
iii. Other External sources include:
Recruitment agencies
College / campus requirement
Requirement advertisements
Application Processing:
HDFC will process all applications promptly and inform the applicant or source regarding the
status of the application. HDFC will respond to all solicited applications within 5 working days
of receiving the application.

28

Interview Process:
All candidates are required to undergo a face to face interview with the interview panel before
selection.
Interviews may be conducted at a place at mutually convenient locations and time in an effort
to maintain confidentiality of the hiring effort.
One on one meeting shall be preferred as the interview format, however depending on the
constraints panel interviews / telephone / video conference screening could be used.
For recruitment at junior levels, job fairs, universities etc, where large volume of candidates,
HDFC will use recruitment tests for purpose of short listing. The candidate may be tested on the
basic aptitude, analytical skills or other skills required for the job of the candidates.
The interview process will focus on the evaluating the candidates suitability in terms of the job
description and fit within the organization.
Each interviewer will complete the interview feedback form and submit it to HR. HR will
compile the results from a various interviews and provide these to the line manager for the final
decision.
Recruitment Expenses:
All recruitment expenses including recruitment fees, advertisement expenses and interview
related expenses will be allocated to the concerned business unit.
The candidate will be informed about the nature of the expenses that are reimbursable and the
supporting documents required (in original). HR will ensure that candidate fills the necessary
reimbursement forms and that he/she receives the reimbursement at the earliest.
Outstation/International Candidates - HDFC will pay for appropriate air fare and expenses
incurred for the stay for candidates who they decide to fly from other locations. Prior approval
from the Regional HR Leader / HR Head is required to invite candidates. For candidates from
International

Locations,

prior

approval

from

Pre-Employment Check:

29

the

HR

Head

needs

to

be

taken.

This will include both a professional reference check as well as the background check.
Professional reference check will be completed by the hiring manager. HDFC will request
contact information for 2 references from the candidate, and check the quality of previous work
experience and key personal characteristics/conduct/ previous record etc.
For key positions in areas, HDFC will also perform a background check to assess the integrity /
conduct of the candidate.
The following information regarding the candidate will be verified:
- Proof of educational qualifications
- Any professional certificate that is essential to the job
-Address details
-Passport details
- Date of birth
-Proof of previous employment (service certificate)
Any negative feedback and comment in the reference check will be investigated by HR and if
found genuine shall be a cause for disqualification of the candidate or dismissal from
employment.
Offer Process:
Once the hiring decision is finalized, HR will prepare an offer / fitment as per the compensation
structure and grade and keeping in mind the internal equity.
The offer would be communicated to the selected candidates by the hiring manager along with
HR. The candidate will sign the contract letter to formally accept employment from the
organization.
Pre-Employment Process:

30

As an organization, HDFC will make all necessary arrangements to ensure a smooth joining
process for the employees. HR will provide the candidate a check list prior to joining to ease
joining formalities.
Relocation for Employment:
Where the employee has to relocate and has been pre-approved by the HR Head and the staffing
leader, the relocating candidate shall be eligible for the following relocation assistance:
The joining employ has the option to avail temporary accommodation (which includes laundry)
for the first two weeks arranged by organization. The stay in company provided accommodation
can be extended by two weeks further based on specific approval from the Head HR. Where the
stay extends beyond 4 weeks, the respective will not be paid housing allowance for the
corresponding period.
Local travel assistance up to positions of RO/RM/equivalent and below will be reimbursed for
one week and for SRM/equivalent and above will be reimbursed up to two weeks.
Food expenses during the period will be reimbursed as per actual up to Rs 500/-per day per
person.
Approved reasonable expenses incurred in transporting the personal goods including the
transportation /registration of one automobile to the city of work. Employees are advised to use
the designated moving agencies as per rates negotiated by Administration. Where negotiated
rates are not available, the employee is required to submit 3 quotations and secure approval from
Administration before assigning the contract to a moving firm.
Employment of Relatives:
The organization employs, purely on merit, the relatives of our employees as long as it does not
create a potential conflict of interest. To avoid a potential conflict of interest and to reduce the
possibilities of favoritism the following guidelines must be followed:
Relatives are not assigned to a position where he/she has the opportunity to check, process, and
review, approve, audit or otherwise affect the work of the persons cited and above.
NO one is assigned to a position where she/he influences the professional progress or promotion
of the persons cited above.
31

If one is aware of a situation that appears to be an opportunity for people to display favoritism to
relatives, one should contact the Department Head or Human Resources Department.
Employees will not be part of the hiring process of their relatives
Definition of Relatives:
Relatives would include husband, wife, children, parents, sisters, brothers, first cousins, brothersin-law, sisters-in-law, mother in-law, and father-in-law.
Employees who are aware of candidature of their relatives for the organization must immediately
report to the HR function in writing for information and records. Failure to immediately report
such cases will be considered as a serious violation of the recruitment policy and may entail a
disciplinary action.
Internship Program:
As part of university hire program, HDFC will provide internship opportunities to students. Such
internships will provide opportunities to students to learn while making real contributions to the
company. HDFC will follow the following process:
HR will coordinate with business groups to identify potential opportunities for intern hires.
Internship requests could be received either from the students directly or as nominations from
the educational institute.
HR and hiring manager to tele-interview the candidates with subsequent personal interviews in
the office
HR to coordinate with the hiring manager to develop the project plan for the hire
Based on the demonstrated capability, the intern will be provided with the opportunity to work in
multiple departments to gain a wider business understanding
Internship Criteria:
Typically, the intern will be a pre-final year student of the Bachelor or Master degree programs
specializing in Financial Services/IT and any other business stream as required.
Interns will be expected to manage their won accommodation and it will not be provided by the
32

company Intern will be required to sign the confidentiality and code of conducts documents of
the company
Employee On-Boarding Process:
The overall purpose of the new hire integration process is to ensure that the new employee is
able settle in smoothly and is able to contributing at the earliest.
Pre Employment Induction
HDFCs employee induction process shall begin as per the employee accepts the job offer. The
process includes:
Welcome pack: As soon as the candidate accepts the offer, A welcome pack will be sent to the
employee

A congratulatory note regarding the decision to join the organization

Contact details of a HR representative and the hiring manager A brief company overview
document
Pre-joining checklist: Include details of the documents required from the employee. In case the
employee is relocating from a different location, details of the relocation process and the visa
requirement will be outlined in this checklist. Expectations on the first day of the joining
Office resources: HR shall intimate the immediate supervisor the joining date and immediate
supervisor shall work with the IT and administration team to set up the following 5 days prior to
employee joining, the following elements and are in working order: Email ID, phone, computing
resources, work space/office, access cards, joining kit including bank account opening form,
initial reading material
Post Joining Orientation and Induction:
Joining kit: The employee upon joining would be welcomed by the HR representative and would
be given a joining kit that will include: Access card, information on employees email and phone
number, Bank account opening form, corporate insurance application form(if applicable),HR &
Admin policy manual, other relevant reading material ( to be prepared by hiring manager)
Classroom Induction: The employee integration process will also include classroom training and
induction where the employee will receive presentations and trainings on various topics that
33

would further ingrain the into the organization On the job training: Besides formal training
sessions, the employee will undergo on-the-job function specific trainings that are facilitated by
the respective functions to help the new employee acquaint himself/herself with work in
progress.
Probation Policy:
Probation is a trial that is mutual opportunity for the employee and HDFC to confirm suitability
for continued employment. The probation period is to establish a stronger understanding of
mutual capabilities, expectations and understanding which may include functional training. The
employee must demonstrate suitability for continued employment. An assessment will be based
on factors related to work performance, work habits, productivity, attitude and compatibility,
attendance and punctuality, and any other matter that is linked to job performance and
expectations.
All new hires will be placed on probation for a period of 6 months from the date of joining
HR will initiate the confirmation process by sending an appraisal form to the immediate
supervisor before the completion of probationary period. The appraisal form will need to be
approved by the supervisors leadership. All letters of confirmation or extension of probation will
be signed by the HR head and will be stored in employee file for records.
2.4 RECRUITMENT PROCEDURE (ICICI)
Eligibility Criteria for ICICI Bank recruitment 2014-15 Probationary Officer:
i. Those who have completed graduation with 55% (Aggregate) marks in any discipline.
ii. Up to 25 years of age as on 31st December 2014 (should have been born on or after 31st
December 1989).
iii. Only shortlisted applicants will be invited for the selection process.
iv. The above will be considered as the threshold criteria for short listing.
Selection process
At ICICI Bank, the selection process aims at getting applicants who are likely to succeed at
various roles in the Bank. The endeavour is to select people who have a high service orientation,

34

are passionate about their career goals, and who display integrity and ethics in all engagements.
Depending on the level of recruitment, the selection process consists of following
combinations:
i. Aptitude Tests
ii. Group Discussion (This method is primarily used for campus selection
process)
iii. Psychometric Profiling
iv. Personal Interview
i. Aptitude Tests:
Designed for entry level jobs in the Bank, the aptitude test aims to assess basic aptitude of
applicants including Numerical, Verbal comprehension, logical reasoning and basic checking
abilities.
ii. Group Discussion:
Based on case studies, the group discussions are mainly conducted to judge applicants on their
analytical thinking, approach to hypothetical building around business situations and the ability
to break down complex problems to arrive at simple solutions.
iii. Psychometric Profiling:
A questionnaire - based psychometric tool that assesses the typical or preferred behavior of
individuals in work settings. Applicants are required to complete the questionnaire before they
appear for the interview. This tool gives us a better understanding of the applicant and is not used
for elimination of applicants.

iv. Personal Interview:

All applicants are expected to go through the interview round, which is the final step in the
selection process.

35

Group Discussion and Personal interviews will be conducted on the same day. After filling the
online application form, shortlisted candidates will be informed by SMS, Email or any other
means of communication.
Probationary Officer Training Programme of ICICI Bank Recruitment 2014-15:
i. Probationary Officer Training Programme is an initiative of ICICI Bank to attract young
talent who wish to pursue a career in banking. It is designed to develop specialists with
banking knowledge and skills to fulfil the future need of trained bankers.
ii. It is a one year full time residential training programme, conducted at ICICI Manipal
Academy campus, Bangalore. Applicants joining the Probationary Officer Training
Programme will be enrolled for MBA in Banking and Finance with Manipal University, an
UGC recognized University.
iii. Since its inception in 2007 more than 6,800 students have joined the Bank and currently
1,900 students are undergoing the training at the ICICI Manipal Academy Campus in
Bangalore.
iv. Training has blended curriculum with instructor led classroom sessions, e-learning and
internships at ICICI Bank branches/offices. The training imparts knowledge and skills in
core banking (banking products, banking operations, channels and customers, receipts and
payments, etc). the trainees will have the opportunity to specialize in one of the following
areas in banking:

Trade finance

Privilege banking

Rural inclusive banking

Retail banking

Any other profile as decided by ICICI

v. The participant are put through a very rigorous training with special emphasis on application
of knowledge and overall development of personality.
36

vi. The classroom sessions (7 months) are conducted at the ICICI Manipal academy and
internship (5 months) at any ICICI Branch or office ( within India).
vii. The probationary officers are paid stipend to meet the out of pocket expenses.
viii.

The probationary officers will get an assured employment with ICICI Bank on successful

completion of the probationary officer training programme.

ix. The faculty comprises of experienced professionals in the domain of banking and finance
and behavioural sciences. There is a special focus on the overall grooming of the individuals
and that is further facilitated through a learning environment that is created through lectures
delivered by experts from ICICI Bank and the banking industry.
x. The campus is equipped with the best educational infrastructure e.g. air- conditioned
classrooms, video conferencing rooms, auditorium, well stocked library, boarding and
lodging facilities, recreation and sports facilities, etc.
Formal process of ICICI Bank
1. Understanding the Clients Needs :
They study clients recruitment and discuss the details with clients representatives to obtain a
complete understanding of clients needs, desire their executive may even visit client for formal
discussion. They work closely with their customer, to clearly understand how their business
relationship with them can grow. After this they ask client to submit documents like agency
agreement, demand letter of attorney, employee service agreement etc. to provide client a prompt
service.
2. Evaluation of Personnel:
Their executive team takes over from here. They refers to their exciting network and receive
immediate feedback on the availability of the required personnel. They make special effort to
keep their data bank updated and duly supplement it periodically. In order to widen their choice
or to locate persons to meet clients precise specification, they may also advertise in the media or
if necessary, resort to headhunt.
37

They scrutinize the resumes/CV received and shortlist the candidates based on merit and then
invite them for an interview.
They carry out an in-depth analysis of the job specification and match the candidates to meet the
employer-employee equation, to avoid any disappointment due to a mismatch. The final shortlisted resume/CVs are dispatched to the employer for his final selection.
3. The Selection Option:
To make the final selections they offer the following options for consideration by the client. The
entire selection procedure is left to IMR, where a team of Professional /experts will take on the
responsibility of providing client the best work force as per clients job.

4. Medical Checkup:
They retain the services of the best hospitals and clinics in India, which are accredited by Dept.
of Labour and from the Embassies to conduct medical examination of all the personnel intending
to work abroad.
Examination includes HIV/AIDS Test (This test is compulsory) Blood Test, Chest X-Ray, Urine
& S tool Test, or any other kind of examination that might be specially requested by client.
5. Follow Up:
With each new assignment, their workers have to work with unfamiliar people, new procedures,
and changing routines. It is their responsibility to ensure that the transition goes as smoothly as
possible.
This makes far more confident and better- prepared workers. They follow up with selected
candidates for pre-departure formalities, so that they can proceed to work promptly. Their
medicals check-up, processing of travel documents, they take immigration formalities and air
tickets

38

6. Feedback from Client:

They keep in contact with the client even later getting a feedback from the client and
endeavoring to improve their system to give even better service to the client.

2.2 Literature Review:

Work by Hiltrop (1996):
Hiltrop (1996) was successful in demonstrating the relationship between the HRM practices,
HRM-organizational strategies as well as organizational performance. He conducted his research
on HR manager and company officials of 319 companies in Europe regarding HR practices and
policies of their respective companies and discovered that employment security, training and
development programs, recruitment and selection, teamwork, employee participation, and lastly,
personnel planning are the most essential practices (Hiltrop 1999). As a matter of fact, the
primary role of HR is to develop, control, manage, incite, and achieve the commitment of the
employees. The findings of Hiltrops (1996) work also showed that selectively hiring has a
positive impact on organizational performance, and in turn provides a substantial practical
insight for executives and officials involved.

Work by Jackson et al. (2009) and Bratton and Gold (1999):

As discussed by Jackson et al. (2009), Human resource management approaches in any business
organization are developed to meet corporate objectives and materialization of strategic plans via
training and development of personnel to attain the ultimate goal of improving organizational
performance as well as profits. The nature of recruitment and selection for a company that is
pursuing HRM approach is influenced by the state of the labour market and their strength within
it. Furthermore, it is necessary for such companies to monitor how the state of labour market
connects with potential recruits via the projection of an image which will have an effect on and
reinforce applicant expectations. Work of Bratton & Gold (1999) suggest that organizations are
now developing models of the kind of employees they desire to recruit, and to recognize how far
applicants correspond to their models by means of reliable and valid techniques of selection.
Nonetheless, the researchers have also seen that such models, largely derived from competency
39

frameworks, foster strength in companies by generating the appropriate knowledge against which
the job seekers can be assessed. However, recruitment and selection are also the initial stages of a
dialogue among applications and the company that shapes the employment relationship (Bratton
& Gold 1999). This relationship being the essence of a companys manpower development.

Work by Silzer et al (2010):

However, the process of recruitment does not cease with application of candidature and selection
of the appropriate candidates, but involves sustaining and retaining the employees that are
selected, as stated by Silzer et al. (2010).
Work of Silzer et al. (2010) was largely concerned with Talent management, and through their
work they were successful in resolving issues like whether or not talent is something one can be
born with or is it something that can be acquired through development. According to Silzer et al
(2010), that was a core challenge in designing talent systems, facing the organization and among
the senior management. The only solution to resolve the concern of attaining efficient talent
management was by adopting fully-executable recruitment techniques. Regardless of a welldrawn practical plan on recruitment and selection as well as involvement of highly qualified
management team, companies following recruitment processes may face significant obstacles in
implementation. As such, theories of HRM can give insights in the most effective approaches to
recruitment even though companies will have to employ their in house management skills for
applying generic theories across particular organizational contexts.

40

CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Objectives of the study
The objective of my study is to understand and to make a comparative analysis of the recruitment
process of HDFC And ICICI Bank.
1. To know the prospects of recruitment procedure of HDFC and ICICI.
2. To critically analyse the functioning of recruitment procedures.

3.2 Purpose of the study

Recruitment is a process of searching for prospective candidates for the given job in the industry.
As we know it is very important for an industrial concerns to have efficient and effective
personnel with right quality and at right time and at right place available whenever they are
needed. Therefore, the purpose of the study is to analyze the comparative study of recruitment
process of HDFC and ICICI bank which is done by preparing a questionnaire and make the
questionnaire filled by employees so that the information regarding the recruitment process of
both the banks can be gathered and then it would be easy to make comparison.
41

The answers from the Employees will give the true picture of the recruitment process of both the
banks. Analyzing the candidates answers will help in understanding problems from the
Employees view, thus will help to develop the current system and making it more effective.

3.3 Research Methodology of the study

3. 3.1 Research Design
The research design for the study is of Exploratory type and the focus is given to discover the
possible measures, by detailed analysis, for the company which would be helpful up to some
extent to retain a good position in the competitive market.
Exploratory and descriptive research is a type of research conducted for a problem that has
not been clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only with
extreme caution. Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
The research design is not formal and rigid one as the focus depends upon the availability of new
ideas and relationship among variables.
3.3.2 Data Collection Techniques
For the purpose of study both primary and secondary data have been used.
The secondary data have been collected from various magazines, newspaper and websites. For
the collection of primary data structure questionnaire has been used.For the purpose of knowing
whereabouts of the company in the bank market secondary data has disclosed many important
information market share of the company and its potential before the banking market leaders on
the basis of various attributes.
Primary data have been helpful to explore the opinion of their staff members and then the
conclusion is found as which bank have comparative better recruitment processes. On the basis
of information extracted from the primary data various measures are found which would be
helpful to it in making new strategies in near future.

42

3.3.3 Sample design

3.3.3.1 Population
The employees of HDFC and ICICI in different domains (H.R, Finance, Customer Handling,
Telecommunication etc.) are considered as the total population for the analysis.
3.3.3.2 Sample size
In sampling design the most complicated question is: what should be the size of the sample. If
the sample size is too small, it may not serve to achieve the objectives and if it is too large, we
may incur huge cost and waste resources. So sample must be of an optimum size that is, it should
neither be excessively large nor too small. Here, researcher has taken 40 as the sample size of
different skills and designation. They were give questionnaire for collecting the information in
the form of primary data.
3.3.3.3 Sampling method
As per the sampling procedure is concerned, Convenience sampling procedure is taken into
consideration. The sampling units include employees working in branch only. The reason is that
it is the only sampling method that provides essentially unbiased estimates having measurable
precision.
Convenience Sampling
Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.
Researchers make little or no effort to insure that sample is an accurate representation of some
larger group or population.
3.3.4 Method of data collection
The data has been collected from the employees of the bank through questionnaire which
constitutes primary data. The questions were distributed among them and were to be duly filled
by employee.
3.3.4.1 Instrument for data collection
43

A well structured Questionnaire has been used to collect the data from the employees. It includes
13 questions on comparative study of recruitment process of HDFC and ICICI bank.
3.3.4.2 Drafting of a questionnaire
A set of questionnaire was prepared to know the recruitment processes of bank. A questionnaire
has thirteen set of questions related to recruitment processes. Questions were designed by me as
per the guidance given by my college mentor. It has included closed-ended questions and used
Likert type scale to study the relationship between various variables related to the H.R policy i.e.
1 = Strongly Agree
2 = Agree
3 = No Option
4 = Disagree
5 = Strongly Disagree
3.3.5 Limitations

The project is limited in scope as the survey is conducted with a shortage of time constraint.
Some of the respondents were non co-operative in giving the information which hampered

the actual calculation.

Respondent were hesitant to provide the complete information due to fear of misuse of

information.
Some personnel were hesitating in giving appropriate information.
Some personnel were very busy, that is why their response could not be collected and
analyzed.

44

CHAPTER 4
ANALYSIS & INTERPRETATION
4.1Analysis & Interpretation:
1.

Employees aware about recruitments.

S. No

Response

No. Of Respondents

Percentages (%)

Strongly Agree

18

45

Agree

18

45

No Opinion

Disagree

10

Strongly Disagree

TOTAL

40

100

Table 4.1 Awareness about Recruitments

45

Strongly Agree
Agree

45

45

No Opinion
Disagree
Strongly Disagree

Figure 4.1 Aware about Recruitments

INTERPRETATION: From the above analysis, around 43% of employees completely know
about the recruitments. Where 45% agree, and 7% disagree as they do not know about the
recruitment. However, 5% of employees neither agree nor disagree i.e. they have no opinion for
the same.
2. Are employees aware of the recruitment process of their banks (HDFC and ICICI)?
S. No

Response

No. Of Respondents

Percentages

Strongly Agree

14

35

Agree

24

60

No Opinion

Disagree

Strongly Disagree

TOTAL

40

100

Table 4.2 Aware of the Recruitment process

46

Aware of Recruitment process

Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree

5
35

60

Figure 4.2 Aware of the Recruitment process

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that
they are aware of the Recruitment process. Where 60% agree, 0% disagree and 2% neither agree
nor disagree for the same.

3. Which bank sent the recruitment information quickly?

S.No

Response

No. Of
Respondents

Percentages

(ICICI)

No. Of
Respondents

Percentages

(HDFC)

Strongly
Agree

14

35

2O

Agree

24

60

22

55

No Opinion

Disagree

20

47

Strongly
Disagree

TOTAL

40

100

40

100

Table 4.3 Band sent the Recruitment information quickly

Bank sent the Recruitment information quickly(ICICI)

5
35

60

Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree

Figure 4.3 Sent the Recruitment information quickly(ICICI)

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that
they get the Recruitment information quickly. Where 60% agree, 2% disagree and 0% neither
agree nor disagree for the same.

48

Bank sent the Recruitment information quickly(HDFC)

Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree

20

20

55

Figure 4.4 Sent the Recruitment information quickly (HDFC)

INTERPRETATION: From the above analysis, around 20% of employees strongly agree that
they get the Recruitment information quickly. Where 55% agree, 20% disagree and 5% strongly
disagree for the same.
4. Which bank adopt the latest recruitment techniques?
S.No

Response

No. Of
Respondents

Percentages

(ICICI)

No. Of
Respondents

Percentages

(HDFC)

Strongly Agree

32

80

14

35

Agree

20

24

60

No Opinion

49

Disagree

Strongly
Disagree

TOTAL

40

100

40

100

Table 4.5 Adopt the latest recruitment techniques

Adopt the latest Recruitment techniques(ICICI)

Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree

20

80

Figure 4.5 Adopt the latest recruitment techniques (ICICI)

INTERPRETATION: From the above analysis, around 80% of employees strongly agree that
they get their bank adopts the latest Recruitment techniques and 20% agree where as 0%
disagree and 0% strongly disagree for the same.

50

Adopt the latest Recruitment techniques(HDFC)

5
35

60

Strongly Agree
Agree
No Opinion
Disagree
Strongly Disagree

Figure 4.5 Adopt the latest recruitment techniques (HDFC)

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that
they get their bank adopts the latest Recruitment techniques and 60% agree where as 5%
disagree and 0% strongly disagree for the same.
6.

Which bank does recruitment proactively?

70
60
50
40
30
20
10
0
ICICI

HDFC

Inferences - 60 % people says ICICI, 40 % people says HDFC bank did recruitment proactively.
7. Which bank has the lengthy and complex process?

51

60
50
40
30
20
10
0
ICICI

HDFC

Inferences - 55 % people says ICICI, 45% says HDFC says bank have the lengthy and
complex recruitment procedure.
8. Which bank declares the result early?
70
60
50
40
30
20
10
0
ICICI

HDFC

Inferences- 60 % people says ICICI, 40 % people says HDFC whereas 20%people says both
the banks declared result early.
9.

Which bank provides the joining early after the final selection?
70
60
50
40
30
20
10
0
ICICI

HDFC

Inferences - 40 % people says ICICI, 60% people says HDFC and 10 % says both the banks
gave joining early after the final selection.
52

10. Which bank describes the job profile well in the recruitment process?
70
60
50
40
30
20
10
0
ICICI

HDFC

Inferences - 60 % people says

ICICI, 40 % people says HDFC bank describes the job profile well in the recruitment process.

11.

Are most of the administrative task are accomplished by the person Selecting Offer?

40
35
30
25
20
15
10
5
0
Yes

No

Depend

53

Inferences - 30% people says YES , 30 % people says No whereas 40% people says it
depends that .

Are most of the administrative task are accomplished by the person

Selecting Offer.
12.

Is

recruitment

linked

to

human

resource

planning?

100
80
60
40
20
0
Yes

No

Inferences -80% people says YES recruitment linked to human resource planning whereas 20 %
people says No recruitment linked is not to human resource planning.

13. Who are the participants in the recruitment strategies before the announcement of a position?

54

90
80
70
60
50
40
30
20
10
0
HR Specialist

Management

Inferences -80% people says HR Specialists And 20 % people says Management are the
participants in the recruitment strategies before the announcement of a position.
14. Recruitment process is done on which basis?
70
60
50
40
30
20
10
0
One On One

One On Many

Inferences -60% people says , Recruitment process is done on one on one basis whereas 40%
peoples says Recruitment process is done on one on many basis.

55

CHAPTER- 5
FINDINGS
5.1 Findings:
5.1.1 For ICICI Bank

Today, ICICI is a well known name in BANKING SECTOR. During my project work,
Ive noticed that the HR & Administration is very hard working and efficient too.
Therefore, anybody would like to work for it and want to be a part of it.

The Recruitment & Selection Criteria is very good here and they keep on improving the
way they work for it. Moreover, the training program is very sound and employee does not

face any problem during the training period.

It has also been successful in building awareness among the employees regarding the

selection procedure of the organization for the effective accomplishment of the job.
A part from this the process being used is short in comparison to HDFC Bank

5.1.2 For HDFC Bank

Recruitment at an officer and managerial level is not done effectively.

Many people in the organization today are in the wrong jobs and as a result, they are not
utilizing their full potential.

Hiring people based on personal connections when the person is not qualified for the job.

Most recruitment that involves managers is done during discussions at lunch hour, at social
clubs or during the coffee break time.

Inadequate recruitment procedures resulted in a number of staff not being sufficiently

qualified either for the positions they hold or their grades levels, especially in management
positions.

Psychometric test is not conducted during the selection process.

Confusion in the designation and level to the employees even after permanent status for
employment is given.
56

Proper training is not given to the recruitment team and manager.

Reaching few prospects due to internal recruitment, internet advertising most of the time.

Lengthy procedure consuming lots of time and incurring huge money expenditure.

57

CHAPTER- 6
RECOMMENDATIONS AND CONCLUSION
6.1 Recommendations:

Psychometric tests have to be conducted to assessing the personality of the applicants will
they fit in?

Look for different skills as well as the ideas of the candidate at the time of recruitment and
selection process.

Adopting adequate recruitment procedures to employ efficient and talented people.

Job responsibilities have to be clearly explained to the candidate before the joining formality
is done.

Campus recruitments, job fairs may attract more skilled and talented employees towards the
organization.

Provide orientation training to all new employees before their initial work assignments and
to all current employees who receive a different task or job.

Referral scheme has to be encouraged more at times when the requirement is urgent.

6.2 Conclusion:

Recruitment is essential to effective Human Resources Management. It is the heart of the

whole HR systems in the organization. The effectiveness of many other HR activities, such
as selection and training depends largely on the quality of new employees attracted through
the recruitment the recruitment process.

Policies should always be reviewed as these are affected by the changing environment.
Management should get specific training on the process of recruitment to increase their
awareness on the dangers of wrong placements.

Effective recruitment is important in achieving high organizational performance and

minimizing labor turnover. As of now HDFC Bank Ltd. has a team of effective human
resource which is efficiently managing the organization at its best. Though the recruitment
58

process adopted by the organization needs to be improved, challenges are ahead for the HR
Department to recruit people after the effect of recession.

In the present competitive & dynamic environment, it has become essential for organization
to build and sustainable.

In competitive advantage, the Communication skill set has assumed more importance than
even before. Dynamic and growth-oriented organization recognizes Communication as an
important aspect of the Recruitment and Selection system for managerial function in a
rapidly changing and economic environment.

Insurance industries should possess a valuable work force with good communication skill
sets to get a good deal or business from their customers. In this sector the Open Market
channel is the main source of revenue for the company for which they should be able to
communicate well with their clients. Then the company can reach its profitability and
objectives easily.

The company should take the suggestions and ideas from the employees and can conduct
and examine the communication skill set within the employees. So that they can analyse the
need and act accordingly for a better result and the growth of its own and valuable
workforce.

59

BIBLIOGRAPHY
Books Referred:

ASWATHAPPA, K. (2009), Human Resource Management

DESSLER, GARY (2008), Human Resource Management

ROBBINS, STEPHEN P.,(2008) Organizational Behaviour of Prentice Hall of India

(New Delhi)

CHHABRA , T. N.,(2008), Human Resource Management

Websites Referred:

http://en.wikipedia.org/wiki/HDFC_Bank

http://business.mapsofindia.com/banks/hdfc-bank-branches/

http://business.mapsofindia.com/banks-in-india/hdfc.html/

http://www.icicibank.com

60

ANNEXURES
QUESTIONNAIRE:
1. Are you aware of the recruitment process of HDFC and ICICI Bank?
1 = Strongly Agree
2 = Agree
3 = No Option
4 = Disagree
5 = Strongly Disagree
2. In your view, which bank sent the information quickly?

ICICI
HDFC
Both

3. Which bank adopted latest recruitment techniques?

ICICI
HDFC
Both

4. Which bank does recruitment proactively?

ICICI
HDFC
Both

5. Which bank has the lengthy and complex recruitment process?

ICICI
HDFC
61

Both

6. Which bank declares the result early?

ICICI
HDFC
Both

7. Which bank provides the joining early after the final selection?

ICICI
HDFC
Both

8. How much is the gap between final selection and joining date?

Within 15 days
15 Days- 20 Days
Within one month

9. Which bank describes the job profile well in the recruitment process?

ICICI
HDFC
Both

10. Is recruitment linked to human resource planning?

Yes
No

11. Who are the participants in recruitments strategies before announcement of position?

HR Specialist
Management

12. Recruitment & selection process are done on which basis?

One On One
One On Many

62

63