SUMMER TRAINING REPORT ON RECRUITMENT & SELECTION At

HDFC STANDARD LIFE INSURANCE CO. LTD..

SUBMITTED TO : Ms. KAJAL

SUBMITTED BY: Apoorva

CERTIFICATE
This is to certify that APOORVA Student of M.B.A. Second Year of Apex College, Jaipur has successfully completed this project Report on Recruitment and Selection at HDFC Standard Life Insurance Co. Ltd. under my supervision. Date : Ms. Kajal Lecturer Apex college, Jaipur

ACKNOWLEDGMENT
I was actively involved with HDFC STANDARD LIFE INSURANCE company ltd Jaipur, for a period of 45days, and I came across a lot of people who put in their time and effort towards acclimatizing me to the workings of their organization. . I would like thank my Faculty Guide Ms. Kajal mam without whose support, this project would not have been possible. Heartiest thanks for her constant support and motivation. My gratitude to everyone there at HDFC SLIC who has helped me directly or indirectly in the completion of this project.

Apoorva sharma Mba 3rd SEM

PREFACE
Theory and practical are two aspect of management education in order to product a Dynamic and promising executive have been blended together in India, the Industrial training in the domain of management courses has received a pivotal Importance. It expose the potential manager to the actual word environment and Provides them a rich insight into what actually goes in industrial climate of India. In fact, it is the implementation of theory in practice, which is life force of Management. I had privilege of implementing the theory in practice during my Project. During this training period I worked in the HR Department in HDFCLife Insurance Co. On the topic of Recruitment & Selection. This project exposed me to a number of function and activities, which helped me in getting a practical touch of knowledge. I head an insight of daily course that takes to maintain organization on day to day basis.

EXECUTIVE SUMMARY
HDFC Standard Life insurance is India's premier insurance enabling company. HDFC Standard Life insurance is the one-stop-shop for requirements of services in the areas of insurance, optimum investment, financial coverage and losses, mortality benefit, and health option etc. This is backed by HDFC Standard life insurance service support infrastructure - the widest in the country. The objective of the project was to understand how financial consultant play important role for insurance company like HDFC STANDARD LIFE. So to understand the process of Recruitment of financial consultant in HDFC STANDARD LIFE . The main objective of the project is to understand the recruitment and selection of financial consultant more effectively and efficiently, because financial consultant play most important role in business of insurance. Market in Pune city was targeted. Various areas in city were selected. The data gave knowledge about customer satisfaction, loyalty & their feel about the HDFC Standard Life Insurance. Recruitment was conducted using questionnaire. The information about various

attributes & factors was collected about the financial consultant. All the data collected, primary data was filtered & analyzed, represented in the form of graphs & charts. Secondary data was also used in report such as company profile, on the basis of analysis of data, conclusions were drawn. On the basis of findings & conclusions, suggestions were given.

Table of Contents
Preface Acknowledgement 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Industry Profile Company Profile Research Methodology Objective, Scope and Purpose Swot Analysis Data & Analysis Facts and Findings Limitation Conclusion Recommendation Bibliography Annexure 66-69 5-9 10-26 27-28 29-52 53-54 55-60 61 62 63 64 65

INDUSTRY PROFILE

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. A well-developed and evolved insurance sector is needed for economic development as it provides long-term fund for infrastructure development and at the same time strengthens the risk talking ability. It is estimated that over the next ten years India would require investment of the order of one trillion US dollar. The insurance sector. To some extent. Can be enable investments in infrastructure development to sustain economic growth of country With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological

risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not on a limited or non-recourse basis. Insurance company not only provides risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are ideal source of long-term debt and equity for infrastructure projects. With long-term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulation requires insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International insurance companies also invest their funds in such subjects. Insurance is a federal subject in India. There are two legislations that govern the sector- the insurance act 1938 and the IRDA act 1999. Since then the insurance industry has gone through many sea changes. The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques

Importance of Insurance
Insurance benefits society by allowing individuals to share the risks faced by many people. But it also serves many other important economic & societal functions. Insurance provides the capital that communities need to quickly rebuild & recover economically from natural disasters. Insurance itself has become a significant economic force in most of the

industrialized countries. Businessmen buy insurance to cover their employees against work related injuries & health problems. They also insure their assets against any kind of wear and tear by natural forces & forcibly. Insurance companies perform a type of monetary redistribution- they collect premiums & eventually redistribute that money as payments. Depending on the type of insurance, redistribution can take place anywhere from a month to many decades. Because of this delay between collecting & paying out funds, insurance companies invest their funds to bring extra revenue. Such investments help business & government finance their operations, & few profits from these investments support the operations of insurance companies. With these investment earnings, insurance companies can keep rates much lower than would otherwise be possible. In 1993,malhotra committee, headed by former finance secretary and RBI governor R.N. malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:

 Structure: government stake in the insurance companies to be brought down to 50% government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. Competition: private companies with a minimum paid up capital of rs.1bn should be allowed to enter the industry. No company should deal in both life and general insurance through single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal life insurance should be allowed to operate in the rural market. Only one state level life insurance company should be allowed to operate in each state. Regulatory: the insurance act should be changed. An insurance regulatory body should be set up. Controller of insurance (currently a part from the finance ministry) should be made independent. Investments: mandatory investments of LIC life fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company ( the current holdings to be brought down to this level over a period of time). Customer service: LIC should pay interest in delays in payment beyond 30 days. Insurance company must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer service and increase should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decide to allow competition in a limited way by stipulating the minimum capital requirement of rs.100 crores. 5

 The insurance regulatory and development authority reforms in the insurance sector were initiated with the passage of the IRDA bill in parliament in December 1999. the IRDA since its incorporation as a statutory body in April 2000 has fastidiously suck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken by them simultaneously were to provide the supporting system to the insurance sector and in particular the life insurance companies were the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their projects. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 14 life insurance and 6 general insurance companies have been registered. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. A host private insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001.

COMPANY PROFILE
HISTORY OF HDFC MAN WITH A MISSION

If ever there was a man with a mission it was Hasmukhbhai Parikh, Founder and Chairman-Emeritus of HDFC Group who left this earthly abode on November18, 1994. Born in a traditional banking family in Surat, Gujurat, Mr. Parikh started his financial career at Harkisandass Lukhmidass a leading stock broking firm. The firm closed down in the late seventies, but, long Before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the Economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India(ICICI). He rose to become Chairman and continued so till his retirement in 1972.At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more Illustrious than his first. His vision for mortgage finance for housing gave birth to the Housing Development Finance Corporation It was a trendsetter for housing finance in the Whole Asian continent. He was also a writer in his own right. There are over 200 published articles by him...? In 1992, the Government of India honored him with the Padma Bhushan Award. London School of Economics & Political Science conferred on him an Honorary Fellowship.He was one of the Founder Members of the Centre for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the citys underprivileged citizens. When Mr. Deepak Parikh took over as Chairman from Hasmukhbhai, he said: Taking over from H.T. Parikh is a formidable task; his vision brought about not Only an institution, but an entire concept which has proved itself to be of lasting Importance. The Standard Life Assurance Company ("Standard Life") was established in 1825 and the first Standard Life Assurance Company Act was passed by

Parliament in 1832. Standard Life was reincorporated as a mutual assurance company in 1925. The Standard Life group originally operated only through branches or agencies of the mutual company in the United Kingdom and certain other countries. Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largely remained the structure of the group until 1996, when it opened a branch in Frankfurt, Germany with the aim of exporting its UK life assurance and pensions operating model to capitalise on the opportunities presented by EC Directive 92/96/EEC (the Third Life Directive) and offer a product range in that market with In the 1990s, the group also sought to diversify its operations into areas which complemented its core life assurance and pensions business, with the intention of positioning itself as a broad range financial services provider. Banking and investment. The group set up Standard Life Bank, its UK mortgage and retail savings banking subsidiary, in 1998 and Standard Life Investments, which had previously been the inhouse investment management unit of the groups life assurance and pensions business, was separated into a distinct legal entity in the same year, with the aim of establishing it as an independent investment management business providing services to both the group and third party retail and institutional clients. The group acquired Prime Health Limited (subsequently renamed Standard Life Healthcare) in the United Kingdom in 2000. Standard Life Healthcare expanded in March 2006 with the acquisition of the PMI business of First Assist.

Standard Life Asia Limited/Joint ventures

The groups Hong Kong subsidiary, Standard Life Asia Limited (SL Asia), was incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of Standard Life in 2002. The groups operations in Hong Kong were established to give the group a presence in the Far East from which it could expand into China. The groups joint ventures in India with Housing Development Finance Corporation Limited (HDFC)

were incorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003 (in relation to the investment management joint venture). The groups joint venture in China with Tianjin Economic Development

Standard Life International Limited The group also incorporated Standard Life International Limited (SLIL) in 2005 for the purposes of providing the group with an offshore vehicle, based in Ireland, through which it could sell tax-efficient investment products into the United Kingdom. Sales of these products commenced in 2006.

Service company
Following the groups strategic review in 2004, the group established a service company structure for the provision of central corporate services to the groups business units. Standard Life Employee Services Limited (SLESL) supplies a wide range of central services to the rest of the group, including IT, facilities, legal and human resources services, and employs staff working in the groups UK and Irish operations (other than SLI, SLB and SLH, which employ their staff directly). This service company structure was created to enable Standard Life to comply with regulatory restrictions on the provision of non-insurance services and to exploit group-wide synergies.

Company prospects
Introduction
HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC

Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by Others. Our Parentage HDFC Limited HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the trust of more than 9,00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies.

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Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life Group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment manager currently administers 125 billion in assets. It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pensions provider at the Financial Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006.

Our Vision & Values Our Vision

'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'. Our Values Values that we observe while we work:

Integrity Innovation Customer centric People Care One for all and all for one Team work Joy and Simplicity

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Profile of the Board of Directors

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

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

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Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Ms. Marcia D. Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited. Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public

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limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.

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Associate Companies
HDFC LIMITED

HDFC BANK

HDFC MUTUAL FUND HDFC SALES

HDFC ERGO General Insurance

Other Companies

HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd. HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd.

PROUCT RANGE & VARIETY

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy.

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For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organizations we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

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Type of products
(1) Protection
A. Term assurance plan B. Loan cover term assurance plan A) Term assurance plan:Under this plan, a sum assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. Since this no-participating plan is pure risk cover plan, no benefits are payable on the survival to the end of the term of the policy. B) Loan cover term assurance plan:This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured. As the outstanding loan decreases as per the loan schedule, the cover under the policy decreases as per the policy schedule. Since this is a non-participating, risk is there, no benefits are payable on survival to the end of the term of the policy.

(2) Investment Single premium whole of life

Single premium whole of life:-

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Single Premium Whole of Life Plan is well suited to meet your long term investment needs. This participating (with profit) plan offers you the following benefits: A sound investment: Your money will be invested in our with profit fund. The fund aims to provide secure and stable long term growth. Normally, we declare a compound reversionary bonus for your policy every year and add it to your policy on its anniversary. In addition, on death, surrender or on the guaranteed dates, a terminal bonus might be payable. You have to pay a single premium and the policy will pay you a lump sum amount. Flexibility of term: Even after choosing your policy, you can decide on the policy term. For 4 weeks after any one of the 10th, 15th, 20th, and subsequent five-year anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease.

(3) Pension plan

A. Personal pension plan B. Unit linked personal pension plan A) Personal pension plan:This participating plan is basically a saving contract, which is designed to provide an income for life from retirement. It does this by providing a national lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject to the prevailing regulations, part of this lump sum can be taken in form of cash and the rest converted to an annuity at the rate then offered by HDFC Standard Life. Alternately, if it is permitted by the prevailing regulation, the national lump sum can be used to buy an annuity with any other insurance company B) Unit linked personal pension plan:-

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The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On investing the vale of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs. 1,000.

(4) Saving
A. Unit linked endowment plan B. Money back C. Endowment plan D. Unit linked youngster plan A) Unit linked endowment plan:The unit linked endowment plan is an insurance policy that is designed to pay a lump sum amount on the maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against common critical illness, as well as additional protection if death is as the result of an accident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the value of your units. On death (or critical illness, if chosen) you receive the value of your units and your selected basic sum assured. B) Money back:It is a participating (with profits) insurance plan that offers the features listed below: i) ii) Payment of cash lump sum, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of policy. On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lump sums paid is provided.

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In case of the unfortunate death of the life assuror within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts. C) Endowment plan:It is a participating (with profits) insurance plan that offers the following features: I. It provides financial support to the family by way of a lump sum payment in case of the unfortunate death of the life assured within the term of the policy. II. It provides a lump sum payment to the life assures on survival up to maturity. The lump sum mentioned is the basic sum assured plus any bonus additions.

D) Unit linked youngster plan:HDFC Unit linked Young Star plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in his future, even in case of the insured parents unfortunate death during the policy term. The Unit linked Young Star plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit price. On maturity the value of the units will be paid. On death (or critical illness, if chosen) the selected basic sum assured is paid, and the policy continues until maturity. Following a valid death or critical illness claim, we will pay the future premiums (at the level originally chosen at inception) into your policy, as and when they would have fallen due.

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LIST OF MAJOR COMPITITOIRS

1. Aviva Life Insurance 2. Bajaj Allianz 3. Birla Sun Life Insurance 4. ICICI Prudential Life Insurance 5. Kotak Mahindra Old Mutual Life Insurance Limited 6. Life Insurance Corporation of India (LIC) 7. Max New York Life Insurance 8. MetLife India Insurance 9. Reliance Life Insurance 10. SBI Life Insurance 11. ShriRam Life Insurance 12. TATA AIG Life Insurance 13. BHARTI AXA Head Office Edinburgh, Scotland (UK) Worldwide Operations and Presence

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ACHIVEMENT OF THE COMPANY

Awards and Recognition Year

Award Company of the Year Company of the Year Best Personal Pension Provider Company of the Year Company of the Decade Company of the year 4 star service award Overall best company 3 star service award

2003 2002 2001 2000 1999 1996-99 1995 1992-94 1991

Standard Life has been awarded the "Raising Standards" quality mark. This shows that the Company: uses clear language to describe their products on key documents, have appropriate products and Provide a quality service for the customers.

Money Marketing Awards

Company of the Year every year from 1999 to 2005 Best Pension Provider 2004 and 2005 Best Group Pension Provider every year from 1998 to 2003 Best Personal Pension Provider every year since 1998 to 2003 Best Life Investment Product Provider 2003 and 2004 Gold Award in the Poster Campaign Category (Advertising) 2004

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 Money facts Investment, Life & Pensions Awards

Best Pension Product 2003, 2004 and 2005 Best Pension Service 2003, 2004 and 2005

Bank hall Achievement Awards

Pension Provider of the Year 2003 and 2004

Financial Adviser Provider Awards

Overall Winner in 1999, 2000, 2001 and 2002 Pensions Provider of the Year 1999, 2000, 2001, 2002 and 2003 Pensions Company of the Year 2004 Individual Pensions Company of the Year 2004 Group Pensions Provider of the Year 2004 Health Insurance Company of the Year 2004

Financial Adviser Service Awards

Company of the Year every year from 1997 to 2001 5 Star Life and Pensions Provider every year from 1996 to 2004 5 Star Investment Provider every year from 1996 to 2002 and 2004

Pensions Management Administration and Service Awards

Overall Winner - Personal Pensions 2003 Overall Winner - Stakeholder Pensions 2002 and 2003 Overall Winner - Group Personal Pensions 2002 and 2004 Member Communications - Personal Pensions, Group Personal Pensions & Stakeholder Pensions 2003 Backup (branch office) - Personal Pensions 2003 23

RESEARCH METHODOLOGY
Generally two types are data are used for any research, which are very important for the research, these can be discussed as 1. Primary Data 2. Secondary Data

Primary Data
Primary data are the data which are original in character, obtained for the first time, being collected from the respondents, either through questionnaire or through personal interviews. This can be collected by various methods like Surveys Observation Experimentation Measurements Personal interview Telephonic interview Questionnaires

But my chosen way of collecting data was through Personal Interview and Questionnaires.

Secondary data
Secondary data is the data, which has been collected by someone else for some other purpose and is used by the researcher in his research for study. Various sources of secondary data are Catalogues, Brochures, Magazines and Websites, Television etc. In this project I made use secondary data for gaining more and more about the company, its products and various benefits an advisors will be getting. For acquiring this knowledge I have studied secondary sources like company websites, brochures, paper presentations etc.

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Analysis of Data / Statistical data

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

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

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Objectives, Scope and Purpose of the Study

OBJECTIVE OF THE RESEARCH
How does right recruitment process helps in creating overall efficiency, cost reduction, on time delivery with reference to external customer. To collect the findings, information & analyze to draw conclusion of recruitment process. To explain the documentation used at the various stages of the recruitment & Selection process. To involve employees in creating an environment of openness, trust, fun & pride. To highlight the area where recruitment and selection programs needs improvement. Is the current recruitment process in line with the employees future career planning and his potential? Developing human resources in consonance with broader corporate horizon and long range vision of the organization.

PROJECT SCOPE
To understand the complete recruitment cycle in Vipul Facility Management. Is right kind of recruitment happening at all levels? Define deliverables, Define functionality data, and Define technical structures. Data collection for understanding the recruitment process. Personal interaction to understand the efficiency of the recruitment process. To help the company to determine how they make their recruitment and selection programs more effective. To determine various parameters to collect information through questionnaire of employees.

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PURPOSE OF STUDY
To study the Recruitment and Selection Practices at HDFC Standard Life Insurance Company. To identify the various factors companies undertake prior to the recruitment process. To study how the companies establish a fit between their business strategy and recruitment strategy. To study how the companies have coped with change in the market vis a vis its recruitment process.

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RECRUITMENT AND SELECTION

RECRUITMENT:
Recruitment is concerned with developing suitable techniques for attracting more and more candidates. The aim of personnel planning is to determine the needs for persons both in terms of number and type. For deciding about the number both present and future requirements should be taken into account. If there are expansion plans in near future then these requirements should also be considered. Besides number, the type of persons needed is also important. The educational and technical requirements to manage various jobs should e properly analyzed so that right type of persons are employed. Recruitment is sometimes confused with employment. The two are not one and the same. Recruitment is just one step in the process of employment. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. When more persons apply for jobs then there will be scope for recruiting better persons.

DEFINITION :
Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.

RECRUITMENT POLICY:
It specifies the objective of recruitment and provides a framework for the implementation of the recruitment programme. A recruitment policy may involve commitment to broad principles such as filling vacancies with the best-qualified individuals. It may also involve the organizational system to be developed for implementing recruitment programme and procedure to be employed.

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ELEMENTS OF GOOD RECRUITMENT POLICY :

A good recruitment policy must contain the following elements: 1) Organizational objectives : Both short term and long term organizational objectives must be taken into consideration. Identification of recruitment needs : The recruiters should prepare profiles for each category of workers and accordingly work out the main specifications, decide the sections, departments or branches where they should be placed. 2) Preferred sources of recruitment : The sources of recruitment should be identified properly. 3) Criteria of selection and preferences : Selection and preferences should be based on conscious thought and serious deliberation. 4) Monetary aspects : The cost of recruitment and financial implications of the same have to be kept in mind also.

PRE-REQUISITES OF GOOD RECRUITMENT POLICY:

1) It should be in conformity with the general personnel policies. 2) It should be flexible enough to meet the changing needs of the organization. 3) It should provide employees with job security and continuous employment. 4) It should integrate organizational needs and employee needs. 5) It should match the qualities of the employees with the requirements of the work for which they are employed. 6) It should highlight the necessity of establishing job analysis.

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FACTORS AFFECTING RECRUITMENT:

Every organization, big or small has to engage in recruitment of persons, recruitment has two aspects1) To find out the number of vacancies to be notified and the type of applicants needed to fill them. 2) To approach the potential applicants to apply for such vacancies. No organization can recruit successfully without taking into consideration the following factors 1) The Economic Factors The economic conditions of a country influence the recruitment process in all organization. The globalization and liberalization of Indian economies since 1991 onwards has resulted in a boom in financial services in India. As a result of the new economic policy, the demands of well 2) The Social Factors These also affect the recruitment policy of an organization. Social changes in the past two decades in India, have forced organization to place increased emphasis on recruitment. The mentality of modern employees has changed from just any job to a satisfying career. 3) The Technological Factors New technologies have created new jobs and existing jobs have undergone rapid changes. Several old jobs have disappeared from the scene. 4) The Legal Factors The different legislative policies governing child labour, night shifts, bonded labour etc. have brought legal environment to a major factor.

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PROCESS OF RECRUITMENT It passes through the following stages: 1) Recruitment process begins when personnel department receives requisition For recruitment from any department of the company. 2) Locating and developing the sources of required number and type of Employees. 3) Identifying the prospective employees with required characteristics. 4) Developing the techniques to attract the desired candidates. 5) The next stage in the process is to stimulate as many candidates as possible. 6) Evaluating the effectiveness of recruitment process.

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PROCESS OF RECRUITMENT COMPANY ADOPTS : Personnel Planning Job Analysis

Recruitment Planning

Strategy Development

Searching

Screening

Evaluation and control

Selection

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SOURCES OF RECRUITMENT
Before an organization actively begins to recruit applicants it should consider the mostly likely source of the type of employee it needs. Some companies try to develop new sources while most try to tackle the existing sources they have. These sources accordingly may be termed as internal and external.

Internal Sources
This is one of the important sources of recruitment. The employees already working in the organization may be more suitable for higher jobs than those recruited outside. Internal sources consist of the following : 1) Present Employees : Promotions and transfers among the present employees can be a good source of internal recruitment. 2) Employee Referrals : In an organization with a large number of employees referrals can provide quite a large pool of potential organizational members. 3) Former Employee : These are another internal source of recruitment. Some retired employees may be willing to come back to work. 4) Previous Employees : Those who have previously applied for jobs can be contacted by mail.

External Sources :
These are as follows 1. Advertisement 2. Professional Organization 3. Data Bank 4. Walk in 5. Recruiting Agencies 6. Competitors 7. Displaced Persons 33

8. E-recruitment 9. Cold calling

RECRUITMENT PROCESS COMPANY ADOPTS

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

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SELECTION OF FINANCIAL CONSULTANT

UNDERSTANDING SELECTION PROCESS
Recruitment function helps the organization to develop a pool of prospective human resources. It is difficult for the HR manager to employ the suitable people out of the pool. Infact, many organizations face critical problems in choosing the people. Selection techniques and methods reduce the complexities in choosing the right candidates for the job. After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organization, the management has to perform the function of selecting the right employees at the right time. The obvious guiding policy in selection is the intention to choose the best person who have good social contact. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedure is the system of functions and devices adopted in a given company to ascertain whether the candidate specifications are matched with the job specifications and requirements or not. The selection process can be successful if the following requirements are satisfied: Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis to the workload and work force. There must be some standard of personnel with which a prospective employee may be compared, i.e. a comprehensive job description and job specification should be available before hand. There must be a sufficient number of applicants from whom the required number of employees may be selected. The ability of an organization to attain its goal effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programme. If the right person is selected, he is valuable asset to the organization.

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SELECTION PROCEDURE:
Selection procedure employs several methods of collecting information about the candidates qualifications, experience, physical and mental ability, nature and behavior, knowledge and aptitude for judging whether a given applicant is suitable or not for the job. Therefore the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step facts may come to light, which are useful for comparison with the job requirement and employee specifications. Steps in Scientific Selection Procedure:

JOB ANALYSIS

RECRUITMENT APPLICATION FORM WRITTEN EXAMINATION PRELIMINARY INTERVIEW TESTS MEDICAL EXAMINATION REFERENCE CHECKS LINE MANAGER DECISION

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IN DETAIL EXPLANATION:
(A) JOB ANALYSIS: Job analysis is the basis for selecting the right candidates. Every organization should finalize the job analysis, job description, job specification and employee specifications before proceeding to the next step of selection. (B) HUMAN RESOURCE PLAN: Every company plans for the required number of and kind of employees for a future date. This is the basis for recruitment function. (c) RECRUITMENT: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It is the basis for the remaining technologies of the screening the candidates in order to select the appropriate candidates for the jobs. (D) DEVELOPMENT OF BASES FOR SELECTION: The company has to select the appropriate candidates from the pool of applicants. The company develops or borrows the appropriate bases/techniques for screening the candidates in order to select the appropriate candidates for the jobs. (E) APPLICATION FORM: Application form is also known as application blank. The techniques of application blank are traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirement of information based on the size of the company, nature of business activities, type and level of the job etc. Information is generally required on the following items in the application forms: 37

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

(F) WRITTEN EXAMINATION: Organizations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate s ability in arithmetical calculations, to know the candidate s attitude towards the job, to measure the candidate s aptitude, reasoning, knowledge in various disciplines, general knowledge and English language. (G) PRELIMINARY INTERVIEW: The preliminary interview is to solicit necessary information from the prospective applications and to assess the applicant s suitability to the job. An assistant in the personnel department may conduct this preliminary interview. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expectations, attitude towards job, age, physical appearance and other requirements etc. Thus, preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as stand up interviews or sizing up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to provide the basic information about the company to the candidate.

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(H) BUSINESS GAMES: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills etc. participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successful candidate in the game will be most successful one on the job. GROUP DISCUSSION is used in order to secure further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or subject matter. The candidates in the group are required to analyze, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarizing or concluding aptly. The selection panel, based on its observation, judges the candidate s skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidate s writing ability as well.

Types of test:
Tests are classified into six classes, each class is again divided into different types of tests. They are:

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APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and emotional quotient (EQ). (1) Skill tests: These tests measure the candidate s ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also. (2) Mechanical aptitude tests: These tests measure the capabilities of spatial visualization, perceptual speed and knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc. (3) Psychomotor tests: These tests measure abilities like manual dexterity, motor ability and eyehand coordination of candidates. These tests are useful to select semi-skilled workers and workers for repetitive operations like packing and watch assembly. (4) Clerical aptitude tests: These types of tests measure specific capacities involved in office work. Items of this tests include spelling, computation, comprehension, copying, word measuring etc.

ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organization wishes to employ experienced candidates. These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the candidate s achievement in his career is tested regarding his knowledge about the job and actual work experience. 40

SITUATIONAL TESTS:
This test evaluates a candidate s in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situations of the job. (1) Group discussion: This test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas of initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, coordinating and concluding skills. (2) In basket: Situational test is administered through in basket method. The candidate in this test is supplied with actual letters, telephone and telegraphic message, reports and requirements by various officers of the organization, adequate information about the job and organization. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda.

INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in a job and job success. Interest inventories are less faked and they may not fluctuate after the age of 30.

PERSONALITY TESTS:
These tests prove deeply to discover clues to an individual s value system, his emotional reactions and maturity and characteristic mood. They are expressed in such traits like self-confidence, tact, distrust, initiative, emotional control, optimism,

41

decisiveness, sociability, conformity, objectivity, patience, fear, judgment dominance or submission, impulsiveness, sympathy, integrity, stability and self-confidence. (1) Objective tests: Most personality tests are objective tests as they are suitable for group testing and can be scored objectively. (2) Projective tests: Candidates are asked to project their own interpretation of certain standard stimulus basing on ambiguous pictures, figures etc. under these tests. Personality tests have disadvantages in the sense that sophisticated candidates can fake them and most candidates give socially acceptable answers. Further, personality inventories may not successfully predict job success. A number of corrective measures tried as personality inventories are widely subject to faking. They are: Forced choice of Edward s personnel preference schedule. Gordon personal profile. The Minnesota Multi-phasic Inventory offers different methods for

Identifying faking. The faking can be countered by repeating the same Question in different parts to measure consistency.

MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent upon globalization, competitiveness and the consequent customer-centered strategies. Organization have to develop multidimensionaltesting in order to find out whether the candidates possess a variety of skills or not, candidate s ability to integrate the multiskills and potentiality to apply them based on situational and functional requirement.

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(J) INTERVIEW: Final interview follows after tests. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The different types of interviews are:

PRELIMINARY INTERVIEW:
(1) Informal interview: This is the interview, which can be conducted at any place by the person to secure the basic and non-job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquire about the vacancies or

43

additional particulars in connection with the employment advertisement is an example of the informal interview. (2) Unstructured interview: In this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various items/areas, his background, expectations, interest etc. Similarly, the interviewer also providesinformation on various items required by the candidate.

CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive or experts on various areas of job knowledge, skill, talent etc. This interview may take various forms like: (1) Back ground information interview: This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes and extra curricular activities of the applicant.

(2) Job and probing interview: This interview aims at testing the candidate s job knowledge about duties, activities, methods of doing the job, critical/problematic areas, methods of handling those areas etc. (3) Stress interview: This interview aims at testing the candidate s job behavior and level of understanding during the period of stress and strain. The interviewer tests candidate by putting him under stress and strain by interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to unrelated areas, keeping silent for unduly long periods after he has finished

44

speaking etc. Stress during the middle portion of the interview gives effective results. Stress interview must be handled with utmost care and skills. This type of interview is often invalid, as the interviewer s need for a job and his previous experience in such type of interviews may inhibit his actual behavior under such situations. (4) Group discussion interview: There are 2 methods of conducting group discussion interviews, viz. group interview method and discussion interview method. All the candidates are brought into one room and are interviewed one by one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. Under the discussion interview method, one topic is given for discussion to the candidates who assemble in one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are at ease in this category of interview because of its informality and flexibility. (5) Formal and structured interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting interview. The course of the interview is preplanned and structured, in advance, depending on job requirements. (6) Panel interview: A panel of experts interview each candidate, judges his performance individually and prepares consolidated judgement. This type of interview is known as panel interview. Interviewers for middle level and senior level mangers are normally conducted are the panel of experts.

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(7) Depth interview: In this interview, the candidate would be examined extensively in core areas of job skills and knowledge. Experts test the candidate s knowledge in depth. Depth interviews are conducted for specialist jobs.

DECISION-MAKING INTERVIEW:
After the experts including the line managers of the organization in the core areas of the job examine the candidates, the head of the department/section concerned interviews the candidates once again, mostly through informal discussion. The interviewer examines the interest of the candidate in the job, organization, reaction/adaptability to the working conditions, career planning, promotional opportunities, work adjustment and allotment etc. The personnel manger also interviews the candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The head of the department and the personnel manager exchange the view and then they jointly inform their decision to the chairman of the interview board, which finally makes the decision about the candidate s performance and their ranks in the interview. Most of the organizations have realized that employee s positive attitude matters much rather than employee s skill and knowledge. Employees with positive attitude contribute much to the organization. Hence, interviewers look for the candidates with the right attitude while making final decision. (K) MEDICAL EXAMINATION: Certain jobs require certain physical qualities like clear vision, perfect hearing unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities. Medical examination can give the following information: Whether the applicant is medically suited for the specific job Whether the applicant has health problems or psychological attitudes

likely to interfere with work efficiency or future attendance.

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The offer. Whether the applicant suffers from bad health which should It reveals the applicant s physical measurements and It is used to check the special senses of the candidates.

be corrected before he can work satisfactorily

(L) REFERENCE CHECKS: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidates academic achievement or form the applicant s previous employer, who is well versed with the applicant s job performance, and sometimes from coworkers. Incase the reference check is from the previous employer; information for the following areas may be obtained. They are job title, job description, and period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again and soon. Further, information regarding candidate s regularity at work, character, progress etc. can be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate s performance, character and behavior. However, a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed, actual information, which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organizations. But a good reference check used sincerely will fetch useful and reliable information to the organization. (M) FINAL DECISION BY THE LINE MANAGER: The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of

47

economic implications but alsobecause of behavioral and social implications. A careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the basis of selection of this organization. A true understanding between line managers and personnel managers should be established to take proper decisions. (N) JOB OFFER: Thus, after taking the final decision, the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization offers the job to the successful candidates either immediately or after some time depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer. (O) EMPLOYMENT: The company may modify the terms and conditions of employment as requested by the candidate. The company employs those candidates who accept the job offer with or with out modification of terms and conditions of employment and place them on the job. With the employment of the candidate the recruitment and selection process is completed.

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RECRUITMENT AND SELECTION AT HDFC STANDARD LIFE

Recruitment is the process of attracting prospective candidates who are likely to get selected. Recruitment process starts with the drafting of advertisement for the required post mentioning the name of the post, qualifications required, place of posting etc. the advertisement is released in all major and national newspaper across the country. Not only print media, but other media like internet is also used for posting the advertisement. Placement agencies and educational institutions are considered if the requirements are for fresh graduates. Employee references by are also encouraged. After receiving the applications, it is initially screened by HR division based on minimum requirements and qualifications prescribed for the post. Screened applications from HR division are sent to respective divisional heads for their screening in case of applications for higher posts. Selection is the process of selecting right candidates from the list of prospective candidates. Selection process involves tests, interviews, group discussions, psychometric tests or a combination of these depending on the nature or sensitivity of the level and the post. For technical posts, tests are used as elimination means while for some other posts like management trainee, tests are not used as elimination means. The shortlisted candidates are called for the final interview. Regret letters are sent to those who are not shortlisted. Background checking of the shortlisted candidates is done to ensure that they will fit with the culture of the organization. Job offers are made to the selected candidates and they are asked to give their confirmation that they accept the job offer. On receiving their confirmation, appointment letter is prepared by personnel and administration division and given to the candidate at the time of joining. Salary offer is a part of Human resource division while personnel and administration division handles salary administration.

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SWOT ANALYSIS
STRENGTH 1. HDFC has one of the highest brand recalls of around 80%. 2. HDFC has different types of training methods for their FCs, Agents or Advisor. For Example Disha training, IRDA training, Basic training and induction, Advanced training. 3. Financial Expertise. 4. Range of solutions. 5. Having good network. 6. One of the most aggressive marketing strategies. 7. Training provided to all people associated with the bank provides services like checking the plan or policies online. 8. Free switching options online informing customers about the performance of their investment by sending monthly reports and statements 9. Have around 145000 financial advisor WEAKNESS 1. They are unable to target rural area as compare to LIC. 2. Poor awareness for new products in consumers Poor Distribution network. 3. Negligence to customers after the investment is sold. 4. Very Huge Premium of policies compared to major rival LIC. 5. Target Upper class people only. 6. All Brochures are in English only. 7. Sometimes right advice is not given to the customers. 8. The full charges are not revealed to the customers

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OPPORTUNITIES In India still there is a big market for insurance field. 1. 75% of Indian market is still untapped. 2. Attract more people by providing more customer centric products. 3. Strong brand of the bank helps to boost sales in market. 4. No.1 in adapting new technologies like online search etc. 5. Tie up with brokers also having a large data base of the customers. 6. Getting leads from the branch members.

THREATS 1. Many private players are coming into the market. 2. Some brands in the market gives there product with more features. 3. LIC, ICICI & Bajaj Allianz is the major competitor with better network. 4. Threats from other banks selling same types of investments. 5. Change in the policies of IRDA. 6. Change in the mentality of people 7. Fear of the market to crash down. 8. Employee attrition.

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

50-65 Y ears 40%

25 - 30 Y ears 45%

25 - 30 Y ears 30-50 Y ears 50-65 Y ears

30-50 Y ears 15%

Interpretation: The graph shows that 45% people in the industry are from the age group of 25 to 30 years followed by the age group of 50 65 years and than 30-50 years. Usually fresh graduates take this job as a profession just after completing their studies. And people from the age group of 50-65 years are doing this job because this is a job which can be done after retirement.

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Q. Do the recruited people do have the knowledge of Insurance Sector?

No 17%

0%

Y es No

Y es 83 %
Interpretation: The people who got selected for the job in the insurance usually know about the industry. As the graph shows 83% people were aware of the Insurance sector before taking this as a profession.

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Q. Are the recruited people satisfied with the procedure of test conducted by the IRDA department?

C a n 't S a y 15%

Y es No 25% Y es 60% No

Can' t S ay
Interpretation : The survey shows that 60% recruited people were satisfied with the test which was conducted by the IRDA department. 25% people said they were not happy and 15% people said they are not sure so they cant say anything.

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Q. Do all the recruited people continue working as Financial Consultant?

Can't Say 5%

No 43%

Yes 52%

Interpretation: The survey shows 52% recruited people take this job as their career and they grow gradually. 43% people leave the industry and join somewhere else where 5% people cant respond.

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Q. What is the average work experience of Financial Consultant in HDFC Standard Life?

Less Than 2 Years 30%

No Experience 35%

More Than 2 Years 35%

Interpretation: The graph shows this profession has the 35% people who have experience more than 2 years and also the 35% fresh graduates are recruited in the industry. And the rest 30% people have experience less than 2 years.

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Q. Who is mostly appointed for the post of Financial Consultant?

O th ers 30 %

B a nk ing & F in an c e 4 0%

B a nk ing & F in an c e M e dic al S c ie nc e IT L aw y er Tea c h er O th ers

Teac he r 7% L aw y er 1 0% M ed ic al IT S c ie nc e 10 % 3%

Interpretation The graph shows that the majority of the recruited people in the industry come from Banking and finance background. 10% people come from the computer or Information technology background, 10% people are law graduates, 7% people are teachers and rest come from various different education backgrounds.

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FACTS AND FINDINGS

From the analyzed data I could find that The main source of the recruitment is through external sources i.e. through advertisement. The other source of recruitment is through consultants. Maximum prospects fulfils all the criteria prescribed by the IRDA. Research shows that the Financial Advisors generally belong to the age of 30-50 years It is found that the company provides both types of training and mainly prospects goes for the online training. Every year company recruits as many as 50 Advisors in order to increase the sales force of the company. Most of the recruited people are aware of the insurance sector and the person who are not aware of the insurance sector are made aware through the training before sitting for the test. It has been found through the studies that most of the candidate recruited belongs the banking and insurance sector . It means that they are having some knowledge about the insurance sector. For most of the prospects attending 21 days training is a major problem. As the timings for the training are full time 10:30 am to 5.00 p.m. For most of the prospects they join HDFC STANDARD LIFE for the extra income. Most of the recruited people continue working as a Financial Advisor. references , natural market and

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LIMITATIONS
This Project Report is restricted only for the interviewed people. Biased reply of the respondents like giving wrong information. Non availability of the data or the relevant information of the respondent. Sometimes it happens that the respondent was busy so as to get the information it becomes difficult The project is done in near by areas of the Aundh Branch of the company & therefore findings of it may not be applicable in other areas. Time Constraints The duration of the project is only 2 months. In this duration we have to finish the project so the sample size considered for this project is also limited which may give some misleading outputs. Although ICICI Prudential is a well known brand, it invests heavily in the advertisements, but somehow the concept of financial advisor was not known to the customers and it requires great amount of efforts to convince the various benefits to them.

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CONCLUSION
1. It is found that in the last five years the Indian economy has progressed, which has increased the average purchasing power & the insurance sector has contributed significantly in this. 2. Since last five to six years many Private Company has entered in insurance sectors & because of which the Indians are having number of options in front of them investing their money & to safeguard the life. 3. While doing this project it is found that recruiting of the advisor is done by the Unit Manager, and the parameters on which the advisors are to be recruited are : Income Level 1.2lacs to 2 lacs per annum Marital Status Married Age above 25 years Minimum Education Graduation Staying in the same city for more than 5 years 4. The study of the profile of the advisor is depending on their industry background i.e. their work experience and the age wise distribution. 5. The level of awareness of the prospects about the private insurance company has increased because of the heavy advertising ad marketing by the companies over the period of time. 6. It is important to appoint only those prospects as financial advisor, who can give & generate long term business for the company, so to analyze the prospects & study their status is very important thing. 7. Most of the prospects wanted to join, as their first preference to earning extra money, second to start business with no capita investment, third to Association with the No. 1 Private Life Insurance Company.

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Recommendations
Based on the findings in the Research following suggestions are made Finding new prospects is like breathing, so Unit Manager should be in regular touch with the market so that he will gets some good prospects. Company should go for regular Market Survey for finding out the smart worker who can stay under the Managers Sales Team, and will generate long term business. Branch Manager should take the feedback from the existing advisors so that he can easily understand the advisors problem as well s he can recommend new changes. The company should concentrate on the rural part so that they can compete with LIC India, and can generate some business from there as it is found that most of the Private Life Insurance companies are targeting the urban market. Company should follow the pull strategy where it can use advertising media, by preparing attractive Ads, through Newspaper, T.V. , and radio can increase the awareness about the company & will help in improving the market share. Unit Manager should meet regularly with the existing advisors so that he can find out their problems & also take their suggestions. Most of the Indian families still believe in the LIC. They dont feel comfortable with other brands. In such cases ICICI Prudential can opt for descriptive advertisements how our solutions are better than the traditional business solutions.

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BIBLIOGRPHY

WEBSITES : 1) www.hdfcslic.com 2) www.insuranceguide.com 3) www.economictimes.com

BOOKS :

1) HUMAN RESOURCE MANAGEMENT 2) PERSONNEL MANAGEMENT :

SHASHI K. GUPTA C. B. MAMORIAL

JOURNALS & ARTICLES : 1) IRDA JOURNAL 2) BROUCHERS & REPORTS OF COMPANY

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ANNEXURE
RECRUITMENT AND SELECTION OF FINANCIAL ADVISORS

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

Q1. How many candidates are generally recruited for financial advisor through various sources of recruitment ? Natural market References Advertisement Consultants

Q2. Does the people recruited fulfils all the criteria for being financial advisor (criteriamarried , age>25 yrs , graduate , living in a city for more than 5 years , income should be nearly 2 lacs)? Yes No Partially

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Q3. Which age group of people are generally forms the majority as a Financial Advisor? 25-30 years 30-50 years 50-65 years r

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

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

Q6. How many Financial Advisors are generally recruited by the company (at the kothrud)? >10 10>25 25>50 50>60

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

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No

Q8. Are you satisfied with the procedure of test conducted by the IRDA department? Yes No Cant Say

Q9. Do all the recruited people continue working as Financial Advisor? Yes No Cant Say

Q10. What is the average work experience of Financial Advisor in HDFC STANDARD LIFE? No experience More than 2 years Less than 2 years

Q11. Who are mostly appointed for the post of Financial Advisor? Banking & Finance Medical Science IT Lawyer Teacher Others

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Q12. Do everyone attend 21 days training program ? Yes No Cant say

Q.13 Why one generally want to join HDFC STANDARD LIFE as Financial Advisor ? Pinnacle Programme Extra Income No Capital

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