CHAPTER- 1 INTRODUCTION

1.1 INTRODUCTION
RECRUITMENT:We all have heard that, Employees are assets of a company. Every company claims to follow and understand this mantra. The function of HR is all about peoplemanaging them, hiring them, etc. To carry out any function in a business, be it marketing, production, operations, you need people. HR brings the people to the organization and its business. It is said marketing is promoting your product in the market place. Similarly, HR is promoting and selling your company in the market. If you can promote your company efficiently you are sure to attract people to work for you. Every firm whether small or large needs people to do even the minutest clerical work for them. And when there are employees they need to be managed. A small/medium firm may not have a devoted HR department. In that case, the owner or the manager plays the role of the HR head or the firm may hire specialized services of a HR Consultancy. Where as, large organizations have their own HR department consisting of a head and staff that directly reports to the head. The HR department may have further bifurcations depending on the size of the firm and the number of employees. When we say we require people for the functions of business, how do we acquire people for these functions? This is done by RECRUITMENT. For recruitment to happen the company has to do a Job Analysis of the job to be assigned to an eligible candidate. Job Analysis is further bifurcated into 3 sub-parts

Job analysis:This is not a book definition so to say but in laymans language, Job Analysis means a process where the company analyses and defines the skills required to perform a particular job in the company. Job description:Job description is a written statement showing job title, tasks, duties and responsibilities involved in a job. It also prescribes the working conditions, hazards, stress and relationship with other jobs. Job specifications:Job specifications, also known as man or employee specifications, is prepared on the basis of job specification. It specifies the qualities required in a job incumbent for the effective performance of the job. Once the Job Analysis is done the job vacancy can be posted on the Company Intranet, Classifieds, Job portals, Recruitment agencies etc. Recruitment is the step towards Selection. Generally recruitments are either taken care by the HR Department Head or the manager (whoever is responsible for hiring). There is a process for hiring a candidate that is usually to be followed in large organizations. When there is a requirement, the HR department is communicated about the same. The HR department then goes through the database

of candidates it has or it would send the requirements through Classifieds, Job portals, etc. By sending these requirements, the organization is likely to get feedback from eligible candidates in the form of CVs. The requirement advertisement should mention the Job Analysis (Job Description and Job Specification) so as to avoid attracting unnecessary applications. This also makes it easier for the HR department to shortlist from the applications and this will help reduce any bias from the HR resulting due to over examining the applications, boredom, etc. Recruitment and Selection are two different terms even though they are always mentioned together. After the recruitment process is accomplished it gives way to the selection process. Selection process takes place after the HR department has short listed from among the received applications. The selection is not a lengthy procedure but depends from organization to organization. The recruitment process is important in order to avoid any mistakes that would lead to future problems for the company from the candidates end. Its a saying we have heard in our childhood, one dirty fish pollutes the entire pond. Similar is the case with employees. One wrong employee in the organization may hamper the growth of the entire organization.

1.1.1 Figure for the recruitment process and outsourcing

1.2 INDUSTRIAL PROFILE

The accurate account of the history of life insurance is very difficult to give but various available references regarding this, show the presence of some type of protection nearly similar to present life insurance system since ages. In England the concept of insurance emerged in 16th century. Richard mortin issued the first policy on William gibbons life in the year 1536. The W. Gybbons policy gave great publicity for life insurance. Later two companies by the names Hand in Hand Society and The Mercers company came into existence in the 1696 and 1698 respectively. Then in 1721, parliament passed an act which allowed the promotion of companies with the object of life insurance business. So many big companies came up in Britain after that act. In Europe, there was a slow speed of development in this sector. In France, life insurance was prohibited till 19th century. In Germany, The first company in life insurance business came up in 1806 but later closed down its operations due to internal wars. In India, the historical beginning of insurance is not exactly known. But the modern concept of insurance came into being with the advent of East India Company in 18th century. So many insurance companies from Britain started coming it. India to insure the English residents. They used to charge very high rate of premium due to high mortality rate in India. But in 19th century, when Indians were recruited to jobs in various offices, then they started seeking protection with insurance companies. The first foreign company which started the business of insurance in India was oriental company in the year 1818. It liquidated very early and again promoted as the New Oriental. In 1823, a company named Bombay Life started giving insurance policies for two-three year terms. Then Madras Equitable Company came into existence in 1829. These companies failed due to improper and wrong policies in regard to valuation, management and depreciation norms etc. 4 After that so many developments took place. Many European Companies tried to establish business in India but failed to survive due to unethical business practices. The

British parliament passed an insurance act in 1870 and then a few organized efforts were made in the life insurance sector in India. The First World War gave a boost to Indian business of life insurance. So many companies were formed to do the business of insurance. The period between First and Second World War was very bad and depressing for the economy. The industrialists started their own insurance companies. One comprehensive legislation was pass on insurance by Government for the first time in 1928. During the Second World War so many new insurance companies came up. But they resorted to heavy speculation and great financial irregularities were seen in them. Industrialists started banks and insurance companies and interlocked the investment. The government passed the act in 1950 to stop interlocking. The government took many constructive steps to regulate the business of life insurance and ultimately nationalized the business of life insurance in 1956 and set up life insurance corporation (LIC) of India. But now in present, Government has permitted the private sector to enter in this field. A number of private firms entered with life insurance business in India.

5 NEED FOR INSURANCE:-

Growing individualistic ideas are fast penetrating the Indian minds and the jointfamily and the caste systems are fast cracking. Insurance has benefits in store for them. It saves their families from misery, chaos, and destitution. Insurance lays the foundation on which the economic structure of life can be gradually and safely built up and sustained to the end. Uncertainties to the individual are made certainties for the group. SCOPE OF INSURANCE:The opening up of the insurance sector to private companies has made available more products and world class service to Indian customer. To quote Mr.N.Rangachary, chairman, IRDA all these years the nationalized insurance has been bleeding us. The future for a liberalized insurance sector looks bright with a monitoring agency committed to promoting the interests of the customer. According to the business world. The sheer size and potential of Indian insurance market has attracted many new players. Even going by government estimates, though there are about 312 million middle class customer with financial resources to purchase insurance products, only 2.5% of this covered by any from of insurance. LIFE INSURANCE OF INDIA:Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us. Life insurance is not for the person who passes away, it for those who survive. It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies.

6 Major among them are:

INSURANCE COMPANIES IN INDIA Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer. Major Life insurance Companies in India are: 1. LIC 2. Bajaj Allianz 3. ICICI Prudential 4. Aviva Life Insurance 5. Birla Sun Life Insurance 6. HDFC Standard Life Insurance 7. ING Vysya 8. Kotak Mahindra 9. Max New York Life Insurance 10. MetLife India Insurance 11. Reliance Life Insurance 12. SBI Life Insurance 13. Shriram Life Insurance 14. Tata AIG Life Insurance

1.3 COMPANY PROFILE

IDBI FEDERAL LIFE INSURANCE CO LTD:IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas (formerly Fortis) , a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each.

1.3.1 Figure of share of the company joined with IDBI

At IDBI Federal, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on March 31st 2011, the company has issued over 2.92 lakh policies with over Rs. 16,384 Cr in sum assured.

Vision:-

To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

Mission:To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner. To be transparent in the way we deal with our customers and to act with integrity. To invest in and build quality human capital in order to achieve our mission.

Values:Transparency: Crystal Clear communication to our partners and stakeholders Value to Customers: A product and service offering in which customers perceive value. Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims. Customer-friendly: Advice and support in working with customers and partners. Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the community at large.

About the sponsors of IDBI Federal Life Insurance Co Ltd:-

IDBI Bank Ltd. Continues to be since its inception, Indias premier industrial development bank. Created in 1956 to support Indias industry backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 816 branches and 1372 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. Federal Bank is one of Indias leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 739 branches and 797 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations. Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand and has subsidiaries in France, Germany, Hong Kong and UK.

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It is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player, through AG Insurance, and in the UK, it has a strong presence as the second largest player in private car insurance and the over 50s market. MANAGEMENT:The IDBI Federal Life Insurance Company Limited Board comprises of Mr. Nageswara Rao : Chief Executive Officer & Managing Director Mr. Aneesh Srivastava: Chief Investment Officer. Chief Operating Officer: Hans Van Wuijckhuijse.

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MILESTONES:2006: IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance International NV signed a MoU to start a life insurance company. 2008: IDBI Fortis Life Insurance Co. Ltd; which started its operations in March 2008. 2008: IDBI Fortis opens its second branch in Andhra Pradesh in Vijayawada. 2008: IDBI Fortis launches the Bondsurance Plan. 2009: IDBI Fortis announces Rs. 250cr capital infusion. 2009: Nimbus ropes in IDBI Fortis as title sponsor of India- Sri Lanka series. 2009: IDBI Fortis Boss-Ka-Boss receives PRCI Award. 2009: IDBI Fortis launches Retiresurance Pension Plan. 2009: IDBI Fortis scores with Goalsurance. 2009: IDBI Fortis reaches the banks of Hoogly. 2009: IDBI Fortis launches Incomesurance Immediate Annuity. 2009: IDBI Fortis Life Insurance uses an interactive application to help user easily calculate their taxes. 2009: IDBI Fortis reaches the City of Eastern Light. 2009: IDBI Fortis receives bronze Dragon at PMAA 2009. 2009: IDBI Fortis Life Insurance introduces financial inclusion plan in rural Orissa. 2009: IDBI Fortis launches Termsurance Protection Plan. 2009: IDBI Fortis redefines endowment & money back into Incomesurance. 2009: IDBI Fortis to open 65 more branches; raise headcount by 1,000. 12

2010: IDBI Fortis now renamed as IDBI Federal Life Insurance Company.

DISTRIBUTION:IDBI Federal offers services through a nationwide network of advisors and partners. IDBI Federal also sells its products through the more than 1100 branches of its shareholder banks, IDBI and Federal Bank. IDBI Federal has 36 branches across the country. These are: Agra, Ahmedabad, Aurangabad, Ajmer, Bengaluru, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Gaya, Guntur, Gorakhpur, Gurgoan, Guwahati, Howrah, Hubli, Hyderbad, Indore, Jaipur, Jalandhar, Jamnagar, Kanpur, Kochi, Kolhapur, Kolkata, Kottayam, Lucknow, Ludhiana, Mangalore, Madurai, Margao, Mumbai- Andheri, Mumbai-Ghatkopar, Mumbai-Lower Parel, Nagpur, Narsik, New Delhi- Connaught Place, ND-Pritampur,Noida, Panipat, Patna, Pune, Rajahmundry, Ranchi, Rajkot, Siliguri, Surat, Trissur, Thiruvananthapuram, Udaipur, Vanarasi, Vijayawada, Vishakhaptnam.

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TAX BENEFIT
Life insurance and retirement plans are one of the most effective ways of saving taxes. A summary of these benefits is provided below:

Life Insurance Plans and certain types of annuity plans are eligible for deduction under
Section 80C.

Specified Pension Plans are eligible for a deduction under Section 80CCC.
The contributions/payments made towards the life insurance plans and annuity/pension plans are eligible for an overall tax deduction of Rs.1,00,000.

Health Insurance Plans/Riders are separately eligible for deduction under Section 80D.
The proceeds or withdrawals from Life Insurance Policies are exempt under Sec 10(10D), subject to norms prescribed in that section.

INNOVATIVE PRACTICES:IDBI Federal ensures that the customer would find all his investment requirements satisfied with its product, Wealthsurance. The company launched a unique product, Bondsurance that offers tax free assured returns with life cover. With the innovative Homesurance Protection Plan, customers can cover the changing liability that comes with a typical floating rate home loan, along with an optical cover where they can pay off the home loan even in the unfortunate event of any major disease or unforeseen circumstances.

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COMPETITORS:Life Insurance Corporation of India ICICI Prudential Life Insurance HDFC Standard Life Insurance Birla Sun Life Insurance OM Kotak Mahindra Life Insurance Allianz Bajaj Life Insurance Max New York Life TATA AIG Insurance SBI Life Insurance ING Vysya Life Insurance Aviva Life Insurance AMP Sanmar MetLife India Insurance

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MARKET SHARE (in terms of No. of policies 2010-11) :-

1.3.2 Figure of market share

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ORGANIZATION STRUCTURE:-

Managing director

National Head

Zonal Manager

Regional Manager

Bancasurance

Alliance

Agencies

Relationship Manager

Associate Branch Manager

Branch Manager

1.3.3. Organization structure

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1.4 PRODUCT PROFILE PRODUCTS: Wealthsurance Homesurance Bondsurance Group Microsurance Termsurance Healthsurance Loansurance Retiresurance Incomesurance

Incomesurance:
IDBI Federal Incomesurance Endowment & Money Back Plan is a unique combination of the oldest type of insurance policies. On purchasing a typical endowment plan, it is difficult to know the final maturity amount at the time of investing. Also, the maturity date is usually fixed and therefore, if your goals shifted, like getting your daughter married earlier, your plan would not provide the required flexibility. Knowing the customer helped us to combine the Endowment & Money Back plans into a single plan that would allow you to withdraw at maturity but also take your money back at intervals. This way, you can now have the flexibility to tailor your investment to your lifes goals. To add, we linked the returns to the G-Sec rates, transparently declared by the government. This way, you would know the exact amount on maturity at the time of investing. So you could invest according to the desired corpus you intended to build. The Premium is eligible for tax deduction under Sec 80C. Also, the Guaranteed Annual Payout and other benefits upon death are tax-free under Sec 10(10D).

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Wealthsurance:
Wealthsurance combines wealth creation and insurance protection into one powerful financial solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth creation are achieved even in the event of serious illness, accidents, disablement or death. The product that have the flexibility to incorporate within itself, all the possible investments and insurance combinations. The Wealthsurance Foundation Plan enables the policyholder to save and build wealth to meet their financial goals. This Plan comes with a wide range of 11 investment options and 8 insurance benefits - all packaged with a low charge structure and unmatched flexibility. Moreover, get tax benefits on investment and returns under Sec 80C and Sec 10(10D).
. Homesurance:

Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policyholder, irrespective of interest fluctuations at a nominal cost with high benefits. IDBI Federal Homesurance Protection Plan provides full insurance cover for properties even under construction, thus ensuring that the beneficiary gets the full sanctioned amount in case of any unfortunate event. It also has an innovative fixed period cover for those who would aim to prepay their loans early and would find a cover for the full term a waste.

Bondsurance:
The IDBI Federal Bondsurance Advantage Plan is a single premium plan where you need to make just a one-time investment. You can choose a Maturity Period of 5, 7, 10, 15 or 20 years. At the end of the chosen period, you will receive a guaranteed maturity amount. In case of death of the insured person before the Maturity Date, a guaranteed* Death Benefit will be paid.

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Microsurance:
Group Microfinance is recognized globally as the foremost tool in pulling large numbers of poor households from the grip of poverty. Micro-insurance in particular is an explicit need and desire of poor households as it offers some protection from their intense vulnerability to external shocks. IDBI Federal Microsurance Plan is a one of its kind insurance plan which can be very useful for various Micro Financial Institutions and NGOs, wherein not only the members but even the members family gets an insurance cover.

Termsurance:
A term plan is a term plan, thats how this product has been seen. We realized, different people have different needs for insurance. Some look for a large cover option at a low cost, while others seek return of premium on maturity of the policy. There are some who may want their plan to keep in touch with inflation, while others may seek flexible premium payment options. IDBI Federal Termsurance Protection Plan is not a typical term insurance plan, that gives you a cover for the premium, it is innovatively designed to deliver more value to the customers who are looking for a flexible protection plan and a large insurance cover at an affordable cost. The plan offers a Level Paying Term, like a usual term plan. In addition it also offers a Return of Premium so you can get the premiums paid, back on maturity. Thats not all; we understood that by the time an insurance policy matures, inflation and rising costs can make the cover inadequate. IDBI Federal Termsurance Protection Plan offers the unique Increasing Cover option that automatically increases the cover every year without increasing the premium. This way, your sum assured keeps increasing just like rising costs and inflation, keeping you adequately covered till maturity. The Premium is eligible for tax deduction under Sec 80C.

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Healthsurance:

Every year, millions of adults in India are admitted to hospitals due to illness or injury. With the sharp rise in lifestyle diseases in the country, hospitalization has now become a real chance for most of us. Thus, IDBI Federal new Healthsurance Hospitalization and Surgical Plan insurance plan offers a host of features and benefits that are designed to help you manage the extra financial burden that comes with hospitalization.

Loansurance:
With the growing number of loans taken in the country, it is important to provide the borrowers family with security. This insight has led to the product, IDBI Federal Loansurance Group Life Plan, a cost-effective way to ensure that the outstanding debt is settled in the unfortunate event of death of the borrower. This term assurance plan provides cover to a person directly liable for loan repayment (and the partners, in case of a partnership).

Retiresurance:
IDBI Federal Retiresurance Guaranteed Pension Plan is a non participating traditional deferred pension plan designed to help customers secure their lifestyle postretirement, Guaranteed. The plan offers long term guaranteed* return of up to 25 years linked to G sec rates, for those who don't want to take any chances with money saved for their retirement. In addition to this customer will get guaranteed loyalty additions on maturity as a reward for long term commitment. This makes their retirement planning safer combined with a guaranteed growth.

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1.5 STATEMENT OF THE PROBLEM

As you know its difficult to survive in this competitive world with out proper knowledge about recruitment process and outsourcing. It may not be with mouth but an action speaks a lot. It must be the process of recruiting the employee. The recruiting process in IDBI FEDERAL INSURANCE COMPANY LTD is increasing in know a days, this is because of increase of unemployment in the world. Initially there are 100 to 150 employees recruited in last three years and know at present it has been increased to 170 employees only. This is happen due to lack of their presence in the world. So it would be appropriate that the recruitment process and outsourcing. If the company has increased their employees it helps for the development of their company. It would be better how the recruitment process is going on in world. The IDBI is lacking in some of the steps in recruitment.

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1.6 OBJECTIVES OF THE STUDY

TO analyze the recruitment process and outsourcing. The dependence of recruitment process. To evaluate the effectiveness of the recruitment process. To determine the recruitment sources. To analyze the recruitment criteria.

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1.7 SCOPE OF THE STUDY

Recruitment process in IDBI. To structure the Recruitment policy of company for different categories of employees. To provide a systematic recruitment process. To compare the Recruitment policy with general policy. It covers workers, Clerical Staff, Officers, Jr. Management, Middle Management and Senior Management cadres.

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1.8 LIMITATIONS OF THE STUDY

 There is long delay in receiving questionnaires dully filled in. Since the questionnaire is inelastic.
Some of the respondents did not respond effectively due to work. Some of them are not supported open end questions so i have gone through

optional queries. Last but not least as per the restrictions of university there is not enough time to collect more data.

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