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    In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them. Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower. 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.

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    In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them. Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower. 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.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    109 views96 pages

    Recruitment Process in Insurance Industry

    Uploaded by

    bluechelsean
    In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them. Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower. 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.

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    of 96

    Recruitment Process in an Insurance Industry

    A study of Recruitment process in HDFC Life




    Bachelor of Commerce in
    Banking & Insurance
    Semester VI
    2013-2014

    Submitted by
    Alton Anthony Lobo
    Roll No - 17


    Project Guide:
    Mrs Heleena .M. Alphanso


    St. Gonsalo Garcia College of Arts & Commerce
    Vasai, Thane 401201



    Recruitment Process in an Insurance Industry
    A study of Recruitment process in HDFC Life

    Bachelor of commerce in
    Banking & Insurance
    Semester VI
    2013-2014

    Submitted
    In the Partial Fulfilment of the requirements for the Award of
    the Degree of Bachelor of Commerce Banking and Insurance

    By
    Alton Anthony Lobo
    Roll No-17

    Project Guide:
    Mrs Heleena .M. Alphanso

    St. Gonsalo Garcia College of Arts & Commerce
    Vasai, Thane 401201




    DECLARATION


    I Alton Anthony Lobo Student of B.Com Banking &
    Insurance Semester VI (2013-2014) hereby declare that I have
    completed the Project on Recruitment Process in Insurance
    Industry: A study of Recruitment process in HDFC Life

    Wherever the data or information has been taken from any book
    or sources, the same have been mentioned in bibliography.

    The information submitted is true & original to the best of my
    knowledge.





    -----------------------------------
    SIGNATURE OF STUDENT
    (ALTON LOBO)
    ROLL.NO: 17




    St. Gonsalo Garcia College of Arts & Commerce
    Vasai, Thane 401202

    CERTIFICATE

    This is to certify that Mr Alton Anthony Lobo Roll No 17 of
    B.Com.
    Banking & Insurance Semester VI (2013-2014) has successfully
    completed the Project on Recruitment Process in Insurance
    Industry: A study of Recruitment process in HDFC Life
    under the guidance of Mrs Heleena .M. Alphanso.


    ------------------------ -------------------------
    (Mr (Dr) Velerian Rodrigues) (Ms (Dr) Cecilia Carvalho)
    Course Co-ordinator Principal



    -------------------------- ----------------------
    INTERNAL EXAMINER EXTERNAL EXAMINER



    ---------------------------
    (Mrs Heleena .M. Alphanso)
    Project Guide




    ACKNOWLEGEMENT
    I had a great pleasure in presenting my project on
    Recruitment in Insurance Industry: A study of
    Recruitment process in HDFC Life.

    I am sincerely thankful with deep sense of gratitude to
    Mrs Heleena .M. Alphanso, our guide for her kind co-
    operation for the fulfilment of this project.

    I am highly indebted to our Principle Ms (Dr) Cecilia Carvalho
    & our Vice- Principle Mr (Dr) Dominic Lopes who took keen
    interest & allowed us to perform this project.
    I would like to thank our senior librarian who sincerely helped
    me getting this information & last but not the least our college
    for big reason that we are here in front of you presenting this
    project.
    I would also like to thank Mr Marshel Fernando (Regional of
    Human Resource Management Dept.) for providing me all the
    information needed to complete this project.



    -----------------------------------
    SIGNATURE OF STUDENT
    (ALTON LOBO)
    ROLL NO: 17










    Recruitment Process in Insurance Industry



    Index
    SR.NO TOPIC PAGE NO
    1. Executive Summary 1
    2. Objective 2
    3. Chapter 1: Overview of Insurance 3
    4. Chapter 2: Recruitment 22
    5. Chapter 3: Selection 34
    6. Chapter 4: Company Profile 55
    7. Chapter 5: Recruitment In HDFC Life 67
    8. Chapter 6: Selection Process in HDFC Life 76
    9. Conclusion 88
    10. References 89

    1 | P a g e


    Executive Summary
    In todays rapidly changing business environment, organizations have to respond
    quickly to requirements for people. The Financial market has been witnessing
    growth which is manifold for last few years. Many private players have entered the
    economy thereby increasing the level of competition. In the competitive scenario it
    has become a challenge for each company to adopt practices that would help the
    organization stand out in the market. The competitiveness of a company of an
    organization is measured through the quality of products and services offered to
    customers that are unique from others. Thus the best services offered to the
    consumers are result of the genius brains working behind them.

    Human Resource in this regard has become an important function in any
    organization. All practices of marketing and finances can be easily emulated but
    the capability, the skills and talent of a person cannot be emulated. Hence, it is
    important to have a well-defined recruitment policy in place, which can be
    executed effectively to get the best fits for the vacant positions. Selecting the
    wrong candidate or rejecting the right candidate could turn out to be costly
    mistakes for the organization. Therefore a recruitment practice in an organization
    must be effective and efficient in attracting the best manpower.
    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.


    2 | P a g e



    Objective

    The main objective of the project is to understand the recruitment and selection of
    employees at HDFC Life This is backed by HDFC Standard life insurance service
    support infrastructure - the widest in the country. The objective of the project is to
    understand how Human Resource Department play an important role for insurance
    company like HDFC STANDARD LIFE in recruiting good employees. So to
    understand the process of Recruitment of financial consultant in HDFC
    STANDARD LIFE.
    This project enlightens the management skills used for the advancement of the
    employees. It brings out the lowest input and maximum output to give maximum
    efficiency.
    The Other objectives are:-
    To find out the sources of recruitment
    The process of recruitment and the
    To know the Selection process at HDFC life.
    To identify the segment of people for recruitment.
    To find out the different ways to find the prospects for recruitment.
    To find the reason behind individual decisions in joining life insurance
    company.
    To find probable individual for recruitment for the organization.
    To know difficulties in recruitment


    3 | P a g e


    Chapter 1: Overview of Insurance
    1.1 What Is Insurance?
    Insurance is a contract between two parties whereby one party agrees to
    undertake the risk of another in exchange for a consideration known as
    premium.
    Insurance is an economic device whereby the individual can substitute a small
    relatively definite cost (premium) for a large financial loss (the contingency
    insured against) that would have to be borne if insurance was not available.
    The party which undertakes the risk is called insurer and the other one, whose
    risk is transferred is known as the insured.
    The insurer promises to pay a fixed sum of money to the insured on the
    happening of an uncertain event (death) or after the expiry of a certain period
    in case of life insurance.
    The insurer agrees to indemnify the insured on the happening of an uncertain
    event in case of non-life (general) insurance.
    4 | P a g e



    1.2 Basic Concepts
    The concept behind insurance is that a group of people exposed to similar risk
    come together and make contributions towards formation of a pool of funds.
    In case a person actually suffers a loss on account of such risk, he is compensated
    out of the same pool.
    Insurance has two fundamental characteristics:
    Risk is transferred or shifted from one individual to a group.
    Losses are shared, on some equitable basis, by all members of the
    group.


    1.3 Fundamental Principles of Insurance
    Insurable Interest:
    Insurable Interest is defined as the legal right to insure arising out
    of a financial relationship recognized under law, between the
    insured and the subject matter of insurance.
    The Principle of Insurable Interest states that the insured must be
    in position to lose financially if a loss occurs.




    5 | P a g e



    Utmost Good Faith:
    A positive duty voluntarily to disclose, accurately and fully, all
    facts material to the risk being proposed, whether requested or not.
    Higher degree of honesty is imposed on both parties to an
    insurance contract than any other contract, because- Insurance
    product is intangible one.
    Principle of Indemnity:
    It states that the insurer agrees to pay no more than the actual
    amount of loss.
    In other words, the insured should not make profit from a loss.
    The principle applies to non-life (property and liability)
    insurance contracts only.

    Principle of Subrogation:
    It is the right of one person, having indemnified another under
    a legal obligation to do so, to stand in the place of that other and
    avail himself of all the rights and remedies of that other.
    In other words, it is the substitution of the insurer in place of
    the insured for the purpose of claiming indemnity from a third
    person for a loss covered by insurance.
    It avoids a situation where an insured might profit from an
    insured event.
    6 | P a g e


    1.4 History of Indian Insurance Industry
    The business of life insurance in India in its existing form started in India in the
    year 1818 with the establishment of the Oriental Life Insurance Company in
    Calcutta.
    The story of insurance is probably as old as the story of mankind. The same instinct
    that prompts modern businessmen today to secure themselves against loss and
    disaster existed in primitive men also. They too sought to avert the evil
    consequences of fire and flood and loss of life and were willing to make some sort
    of sacrifice in order to achieve security. Though the concept of insurance is largely
    a development of the recent past, particularly after the industrial era past few
    centuries yet its beginnings date back almost 6000 years.
    Life Insurance in its modern form came to India from
    England in the year 1818. Oriental Life Insurance Company started by Europeans
    in Calcutta was the first life insurance company on Indian Soil. All the insurance
    companies established during that period were brought up with the purpose of
    looking after the needs of European community and these companies were not
    insuring Indian natives. However, later with the efforts of eminent people like
    Babu Mutty lal Seal, the foreign life insurance companies started insuring Indian
    lives. But Indian lives were being treated as sub-standard lives and heavy extra
    premiums were being charged on them. Bombay Mutual Life Assurance Society
    heralded the birth of first Indian life insurance company in the year 1870, and
    covered Indian lives at normal rates.

    7 | P a g e


    Starting as Indian enterprise with highly patriotic motives, insurance companies
    came into existence to carry the message of insurance and social security through
    insurance to various sectors of society.
    Bharat Insurance Company (1896) was also one of such companies inspired by
    nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
    companies. The United India in Madras, National Indian and National Insurance
    in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In
    1907, Hindustan Co-operative Insurance Company took its birth in one of the
    rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta.
    The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)
    were some of the companies established during the same period. Prior to 1912
    India had no legislation to regulate insurance business. In the year 1912, the Life
    Insurance Companies Act, and the Provident Fund Act were passed. The Life
    Insurance Companies Act 1912 made it necessary that the premium rate tables and
    periodical valuations of companies should be certified by an actuary. But the Act
    discriminated between foreign and Indian companies on many accounts, putting
    the Indian companies at a disadvantage.
    The first two decades of the twentieth century saw lot of growth in insurance
    business. From 44 companies with total business-in-force as Rs.22.44 crores, it
    rose to 176 companies with total business-in-force as Rs.298 crores in 1938.
    During the mushrooming of insurance companies many financially unsound
    concerns were also floated which failed miserably. The Insurance Act 1938 was
    the first legislation governing not only life insurance but also non-life insurance to
    provide strict state control over insurance business.
    8 | P a g e


    The demand for nationalization of life insurance industry was made repeatedly in
    the past but it gathered momentum in 1944 when a bill to amend the Life Insurance
    Act 1938 was introduced in the Legislative Assembly. However, it was much later
    on the 19th of January 1956 that life insurance in India was nationalized.

    About 154 Indian insurance companies, 16 non-Indian companies and 75
    provident were operating in India at the time of nationalization. Nationalization
    was accomplished in two stages; initially the management of the companies was
    taken over by means of an Ordinance, and later, the ownership too by means of a
    comprehensive bill. The Parliament of India passed the Life Insurance Corporation
    Act on the 19th of June 1956, and the Life Insurance Corporation of India was
    created on 1st September, 1956, with the objective of spreading life insurance
    much more widely and in particular to the rural areas with a view to reach all
    insurable persons in the country, providing them adequate financial cover at a
    reasonable cost.

    LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
    its corporate office in the year 1956. Since life insurance contracts are long-term
    contracts and during the currency of the policy it requires a variety of services need
    was felt in the later years to expand the operations and place a branch office at
    each district headquarter. Re-organization of LIC took place and large numbers of
    new branch offices were opened. As a result of re-organization servicing functions
    were transferred to the branches, and branches were made accounting units. It
    worked wonders with the performance of the corporation.


    9 | P a g e


    It may be seen that from about 200.00 Crores of New Business in 1957 the
    corporation crossed 1000.00 Crores only in the year 1969-70, and it took another
    10 years for LIC to cross 2000.00 crores mark of new business. But with
    reorganization happening in the early eighties, by 1985-86 LIC had already crossed
    7000.00 crores Sum Assured on new policies.
    Today LIC functions with 2048 fully computerized branch offices, 100 divisional
    offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers
    100 divisional offices and connects all the branches through a Metro Area
    Network.
    LIC has tied up with some Banks and Service providers to offer on-line premium
    collection facility in selected cities. LICs ECS and ATM premium payment
    facility is an addition to customer convenience. Apart from on-line Kiosks and
    IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore,
    Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a
    vision of providing easy access to its policyholders, LIC has launched its
    SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and
    closer to the customer. The digitalized records of the satellite offices will facilitate
    anywhere servicing and many other conveniences in the future.
    From then to now, LIC has crossed many milestones and has set unprecedented
    performance records in various aspects of life insurance business. The same
    motives which inspired our forefathers to bring insurance into existence in this
    country inspire us at LIC to take this message of protection to light the lamps of
    security in as many homes as possible and to help the people in providing security
    to their families.
    10 | P a g e


    1.5) Important milestones in the life insurance business in India
    A) 1850 - Non life insurance debuts with triton insurance company.
    B) 1870 - Bombay mutual life assurance society is the first Indian owned life
    insurer.
    C) 1912 - The Indian Life Assurance Companies Act enacted as the first statute
    to regulate the life insurance business.
    D) 1928 - The Indian Insurance Companies Act enacted to enable the
    government to collect statistical information about both life and non-life
    insurance businesses.

    E) 1938 - Earlier legislation consolidated and amended to by the Insurance Act
    with the objective of protecting the interests of the insuring public.


    F) 1956 - 245 Indian and foreign insurers and provident societies taken over by
    the central government and nationalized. LIC formed by an Act of
    Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crores
    from the Government of India.
    The General insurance business in India, on the other hand, can trace its roots
    to the Triton Insurance Company Ltd., the first general insurance company
    established in the year 1850 in Calcutta by the British

    11 | P a g e


    G) 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
    transact all classes of general insurance business.

    H) 1957 - General Insurance Council, a wing of the Insurance Association of
    India, frames a code of conduct for ensuring fair conduct and sound business
    practices.

    I) 1968 - The Insurance Act amended to regulate investments and set
    minimum solvency margins and the Tariff Advisory Committee set up.


    J) 1972The General Insurance Business (Nationalization) Act, 1972
    nationalized the general insurance business in India with effect from 1st
    January 1973. 107 insurers amalgamated and grouped into four companies
    viz. the National Insurance Company Ltd., the New India Assurance
    Company Ltd., the Oriental Insurance Company Ltd. and the United India
    Insurance Company Ltd. GIC incorporated as a company.










    12 | P a g e



    1.6 Insurance sector reforms

    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.

    1997 - Insurance regulator IRDA set up

    2000 - IRDA starts giving licenses to private insurers: Kotak Life Insurance
    ICICI prudential and HDFC Standard Life insurance first private insurers to
    sell a policy

    2001 - Royal Sundaram Alliance first non-life insurer to sell a policy

    2002 - Banks allowed to sell insurance plans.
    13 | P a g e


    1.7 The Insurance Regulatory and Development Authority
    (IRDA)
    The Insurance Act, 1938 had provided for setting up of the Controller of Insurance
    to act as a strong and powerful supervisory and regulatory authority for insurance.
    Post nationalization, the role of Controller of Insurance diminished considerably
    in significance since the Government owned the insurance companies.

    But the scenario changed with the private and foreign companies foraying in to the
    insurance sector. This necessitated the need for a strong, independent and
    autonomous Insurance Regulatory Authority was felt. As the enacting of
    legislation would have taken time, the then Government constituted through a
    Government resolution an Interim Insurance Regulatory Authority pending the
    enactment of a comprehensive legislation.

    The Insurance Regulatory and Development Authority Act, 1999 is an act to
    provide for the establishment of an Authority to protect the interests of holders of
    insurance policies, to regulate, promote and ensure orderly growth of the insurance
    industry and for matters connected therewith or incidental thereto and further to
    amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the
    General insurance Business (Nationalization) Act, 1972 to end the monopoly of
    the Life Insurance Corporation of India (for life insurance business) and General
    Insurance Corporation and its subsidiaries (for general insurance business).
    The act extends to the whole of India and will come into force on such date as the
    Central Government may, by notification in the Official Gazette specify. Different
    dates may be appointed for different provisions of this Act.
    14 | P a g e


    The Act has defined certain terms; some of the most important ones are as follows:
    Appointed day means the date on which the
    Authority is established under the act.
    Authority means the established under this Act.
    Interim Insurance Regulatory Authority means the Insurance Regulatory
    Authority set up by the Central Government through Resolution No. 17(2)/
    94-lns-V dated the 23rd January, 1996.

    Words and expressions used are not defined in this Act but defined in the Insurance
    Act, 1938 or the Life Insurance Corporation Act, 1956 or the General Insurance
    Business (Nationalization) Act, 1972 shall have the meanings respectively
    assigned to them in those Acts

    A new definition of "Indian Insurance Company" has been inserted. "Indian
    insurance company" means any insurer being a company which is formed and
    registered under the Companies Act, 1956
    a) In which the aggregate holdings of equity shares by a foreign company, either
    by itself or through its subsidiary companies or its nominees, do not exceed
    twenty-six per cent. Paid up capital in such Indian insurance company.

    b) Whose sole purpose is to carry on life insurance business, general insurance
    business or reinsurance business.
    15 | P a g e


    1.8 LIST OF LIFE INSURERS
    Apart from Life Insurance Corporation, the public sector life insurer, there are 20
    other private sector life insurers, most of them joint ventures between Indian
    groups and global insurance giants.

    16 | P a g e


    SL
    .
    NO
    .
    Insurers Foreign Partners Regis
    tratio
    n.
    No.
    Date of
    Registration
    Year of
    Operation
    1 HDFC Standard Life
    Insurance Co. Ltd.
    Standard Life
    Assurance,
    UK
    101 23.10.2000 2000-01
    2 Max New York Life
    Insurance Co. Ltd.
    New York Life,
    USA
    104 15.11.2000 2000-01
    3 ICICI-Prudential Life
    Insurance Co. Ltd.
    Prudential , UK 105 24.11.2000 2000-01
    4 Kotak Life Insurance
    Co. Ltd.
    Old Mutual, South
    Africa
    107 10.01.2001 2001-02
    5 Birla Sun Life
    Insurance Co. Ltd.
    Sun Life, Canada 109 31.01.2001 2000-01
    6 Tata-AIG Life
    Insurance Co. Ltd.
    American
    International
    Assurance Co.,
    USA
    110 12.02.2001 2000-01
    7 SBI Life
    Insurance Co. Ltd.
    BNP Paribas
    Assurance SA,
    France
    111 29.03.2001 2001-02
    8 ING Vysya Life
    Insurance Co. Ltd.
    ING Insurance
    International
    B.V., Netherlands
    114 02.08.2001 2001-02
    9 Bajaj Allianz Life
    Insurance Co. Ltd.
    Allianz, Germany 116 03.08.2001 2001-02
    17 | P a g e


    10 Metlife India
    Insurance Co. Ltd.
    Metlife International
    Holdings Ltd., USA
    117 06.08.2001 2001-02
    11 AVIVA Aviva International
    Holdings Ltd., UK
    122 14.05.2002 2002-03
    12 Sahara Life
    Insurance Co. Ltd


    127 06.02.2004 2004-05
    13 Shriram Life
    Insurance Co. Ltd.
    Sanlam, South
    Africa
    128 17.11.2005 2005-06
    14 Bharti AXA Life
    Insurance Co. Ltd.
    AXA Holdings,
    France
    130 14.07.2006 2006-07
    15 Reliance Life
    Insurance Co. Ltd.
    (Earlier AMP Sanmar
    Life Insurance Co. from
    3.1.02 to
    29.9.05)


    121 03.01.2002 2001-02
    16 Future Generali India
    Life Insurance Co. Ltd.
    Pantaloon Retail
    Ltd.;
    Sain Marketing
    Network
    Pvt. Ltd. (SMNPL),
    Generali, Italy
    133 04.09.2007 2007-08
    17 IDBI Fortis Life
    Insurance Co. Ltd.
    Fortis, Netherlands 135 19.12.200
    7
    2007-08
    18 Canara HSBC OBC
    Life Insurance Co.
    Ltd.
    HSBC, UK 136 08.05.200
    8
    2008-09
    18 | P a g e



    1.9 Types of insurance:
    Generally, insurance is divided into two categories and is named as;
    General Insurance
    Life Insurance
    FRAME WORK ANALYSIS
    OF INSURANCE



    19 Aegon Religare Life
    Insurance Co. Ltd.
    Religare,
    Netherlands
    138 27.06.200
    8
    2008-09
    20 DLF Pramerica Life
    Insurance Co. Ltd.
    Prudential of
    America,
    USA
    140 27.06.200
    8
    2008-09




















    19 | P a g e


    1.10 What are the benefits one get from insurance:
    Safeguards oneself and one's family for future requirements.
    Life cover.
    Peace of mind in case of financial loss.
    Encourage saving.
    Tax rebate.
    Protection from the claim made by the creditors.
    Security against a personal loan, housing loan or other types of loan.
    Provide a protection cover to industries, agriculture, women and child.

    1.11 Distribution Channels in Insurance
    Introduction
    An insurance cover is an intangible product evidenced by a written
    contract known as the policy. Insurers market various insurance covers
    either directly or through various distribution channelsindividual
    agents, corporate agents (including Banc assurance) and Brokers. The
    marketer in the distribution network is in direct interface with the
    prospect and the customer.

    Life insurance products are sold through individual agents and many of
    them have this as their only career occupation. General insurance
    products are sold through individual agents, corporate agents and
    brokers. Distribution channels such as agents are licensed by the IRDA.
    To get an agency license, one has to have certain minimum
    qualifications; practical training in insurance subjects and pass an
    examination conducted by the Insurance Institute of India.
    20 | P a g e



    IRDA regulations on licensing of agents/brokers lay down the code of conduct
    for individual agents, corporate agents and brokers.
    Thus it is seen that the dos and donts for these intermediaries are given clearly at
    the point of sale as well as in the event of a claim. Service does not end with the
    customer receiving his document; it in fact only begins here. After sales service
    is as important or even more important like when a refund has to be made or
    when a claim has to be made.
    One of the issues that are of great concern affecting professionalism in insurance
    activities is resorting rebating by intermediaries. Rebating is prohibited as per
    Section 41 of the Insurance Act, 1938 and the public are advised not to deal with
    intermediaries offering rebate of any kind.
    Rebating means a share of commission receivable by the agent/broker is given to
    the prospect/client. This is done to attract the client in the purchase of insurance
    contract by offering cash. Competition among agents/brokers is so cut-throat,
    some agents indulge in such unethical practices. Public are advised not to ask for
    any prohibited rebates in premium since commission payment to an agent is the
    only income for some to take care of their families. Similarly, agents are also
    advised not to indulge in such practices which could cause them loss of agency
    income.


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    Alternate Distribution Channels:
    The insurance marketplace is undergoing a transformation that may eventually
    lead to significant changes in how consumers purchase insurance products. A
    variety of distribution channels are currently used in this market place and some
    insurers utilize a combination of distribution channels. Such as:
    Direct Sales
    Brokers
    Corporate Agents
    Telemarketing
    Online Marketing
    Retail Chains
    Franchisee

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    Chapter 2: Recruitment

    The acquisition of human resources for the organisation takes place through the
    process of recruitment and selection. After the human resource needs of the
    organisation are identified through human resource planning, the next step is that
    of recruitment and selection. One of the most difficult tasks of the human resource
    manager is that of recruiting and selecting the right kind of people for the
    organisation.
    Recruitment is the first step towards procuring qualified manpower for the
    organisation. The process of acquiring human resources begins with recruitment,
    continues with selection and ceases with placement.
    Recruitment is the process of identifying and attracting potential candidates from
    within and outside an organization to begin evaluating them for future
    employment. Once candidates are identified, an organization can begin the
    selection process. This includes collecting, measuring, and evaluating information
    about candidates qualifications for specified positions. Organizations use these
    processes to increase the likelihood of hiring individuals who possess the right
    skills and abilities to be successful at their jobs.






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    2.1 Definitions:
    DeCenzo and Robbins describe recruitment as the process of discovering
    potential candidates for actual or anticipated organizational vacancies. It is a
    linking activity aimed at bringing together those with jobs to fill and those seeking
    jobs.
    According to Edward Flippo, recruitment is the process of searching for
    prospective employees and stimulating and encouraging them to apply for jobs in
    an organisation.
    A number of factors such as the size of the organisation, the employment
    conditions in the community, reputation of the organisation, working conditions
    and salary and benefits offered by the organisation affect the recruitment process.
    Ideally, the recruitment process should ensure that for every position available in
    the organisation, there are sufficient number of qualified applicants. In very large
    organization, recruitment is a complex and continuing process that demands
    extensive planning and effort.

    RECRUITMENT


    SELECTION


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    2.2 Sources of recruitment
    The various sources of recruitment may be broadly classified in two broad
    categories: Internal and External sources. Some organizations draw their human
    resources internally i.e. from within the organisation while others draw externally
    i.e. from outside the organization. Both the sources have their advantages and
    limitations.

    2.2) A) Internal Sources of recruitment
    The internal sources of recruitment focus on finding qualified applicants within the
    organization. The organization itself is the best source of applicants for positions
    above the entry level. The internal sources of recruitment may be of the following
    type:
    (1) Promotions:
    Vacancies in the organization may be filled by promoting qualified and
    experienced employees. Promotion refers to shifting an employee to a higher
    position carrying higher status, responsibilities and pay. Promotions may be
    based on performance or seniority depending upon the organizations
    promotional policies.

    (2) Transfers:
    Another common way of filing up vacancies is through internal transfers. An
    existing employee who is experienced and capable is transferred from one
    department in the organization to another. In transfers, the shifting of the
    employee occurs without any major changes in his status and responsibilities.
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    (3) Job postings (internal advertisements):

    A popular method of finding applicants is through job postings or internal
    advertisements. Job posting involves announcing job opening to all current
    employees through notices on the bulletin boards or through the company
    newsletters. Some organizations have developed computerized job posting
    systems so that employees can obtain information on their computer screens.
    Job postings carry information about the nature of the position and
    qualifications needed, and any employee who is interested in the job may
    apply for the same.
    Job announcements ensure that employees are aware of opportunities to
    move up in the organization.

    (4) Recall of retired and ex-employees:

    When an organization is not able to find a suitable candidate for a vacancy,
    former employees of the organization who have retired or had quit the
    organization may be recalled.

    (5) Skills Inventories:
    Many firms have developed computerized skills inventories of their
    employees. Information on every employees skills, educational background,
    work history, and other important factors is stored in the organizations
    database. The skills inventory is used to identify employees with the
    attributes needed for a particular job.
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    A new development in this area is the Human Resource Information
    System (HRIS). It is a computerized system that assists in processing of
    HRM information. It provides skill inventory information.
    The HRIS is designed to quickly fulfil the personnel information needs
    of the organization. It permits the organization to track most information
    about an employee and about jobs and retrieve that when it is needed. HRIS
    is extremely useful for storing employment, training and compensation
    information on each employee.

    2.3) B) External Sources of Recruitment
    Organization turn to external sources of recruitment when the internal
    sources fall short. New organization rely largely on external sources to meet
    their recruitment needs. However even well-established organizations turn to
    external sources when candidates with the desired skills, knowledge and
    qualifications are not available in the organization or in order to introduce new
    blood in the organization.
    The external sources of recruitment are:
    (1) Campus recruitment:
    Educational and training institutions like the IIMs, IITs and other
    professional colleges are a good source of recruitment qualified and trained
    personnel. Many educational institutions have placement departments who
    forward the names of graduating students to interested organization and
    invite them to conduct campus interviews.
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    (2) Advertisements:
    Advertisements in journals, newspapers and magazines with wide
    circulation is a very popular source of recruitment. However care should
    be taken in preparing the advertisements so that only qualified applicants
    respond.
    The advantage of this method is that:
    A single advertisement can reach millions of potential recruits.
    The cost per person is very low.
    As more and more people surf the internet, the internet as a
    medium of advertising is becoming increasingly popular.

    (3) Employment agencies:
    Private consulting firms carry out recruiting functions on behalf of the
    organizations. Firms of such kinds are also referred to as head hunting firms.
    These firms carry out all the functions of recruitment and selection and
    provide organizations with candidates as per their requirements. The
    employment agencies charge a fee for their services. S. B. Billimoria, ABC
    consultants, Personnel Search are some of the top employment consultants in
    India.
    (4) Employee recommendations:
    A very good external source of recruitment is a recommendation from a
    current employee. An employee will rarely recommend someone unless he is
    certain that the individual will perform adequately. This is because
    recommendations reflect on the recommender and his reputation is at stake.
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    (5) Professional Bodies:

    Professional bodies like the institution of Chartered Accountants,
    Institute of Company Secretary maintain a record of qualified persons in
    their specialized fields. Organizations can approach such bodies to meet
    their specific needs.

    (6) Deputation:
    In deputation the services of an experienced employee of another
    organization are borrowed for a fixed period of time. This source of
    recruitment is usually for senior positions in the organization. The person
    on deputation serves the borrower for a period of time and returns to
    lender organization.

    (7) Poaching:
    Poaching involves attracting talented and competent persons from rival
    organization by offering better terms and conditions of employment with
    regard to salary, designations, working conditions, additional perks and
    benefits. Poaching is considered to be unethical as employees often carry
    with them sensitive information that could hurt the interests of their
    former organization.





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    (8) Unsolicited or casual applications:
    Often organizations receive unsolicited applications for jobs in the form
    of telephone calls, letters, e-mail or walk-ins. Organizations do not throw
    such application but maintain a record of these applications as they serve
    as a prospective source of manpower.


    (9) E-recruitment /Online recruitment:
    Online recruitment has seen explosive growth in recent years. The
    internet has become an extremely important and useful tool of
    recruitment. The internet allows:

    (A) Employees to post or advertise vacancies on their own website or
    specialist online recruitment sites

    (B) Prospective employees with information about employers
    recruitment policies and jobs.

    (C) Database searches matching employers requirements and job
    seekers CVs.





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    2.3 Recruitment Process


    Personnel
    Planning
    Job
    Analysis
    Recruitment
    Planning
    Searching
    Evaluation
    and control
    Strategy
    Development
    Selection
    Screening
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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.

    2.4 Evaluation of recruitment process
    There are several metrics that organisations can use to evaluate their recruitment
    process. These include:
    Cost per hire
    Applicant volume
    Time to fill
    Quality of hire
    Human capital ROI
    Tenure
    Hiring manger and employee attitudes
    Turnover costs
    Career path ratio and more
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    Organisations can use some or all of the metrics to measure against depending on
    their needs and the driving focus behind recruitment strategy. Four common
    metrics include:

    1) Cost Per Hire - (Advertising costs + Consultancy Fees + Total
    Interview Costs/ Total Hires)

    Cost per hire measures how much a company is spending on hiring
    individuals. It helps organisations to understand how much they are
    currently spending and if they are using enough resources.
    It measures the effectiveness of recruitment efforts and helps
    organisations to understand how much they are spending per hire and which
    recruiting sources are working the best. Once the total cost per hire is known
    organisation can then plan and set a budget for the future.

    2) Time to Fill (Total Days to Fill/ Total Hires)
    Time to fill analyses the average time it takes to fill a vacancy and uses this
    to measure the efficiency of the recruitment process.
    The rationale here is that vacant positions cost money and the faster a
    position is filled the better the organisation is being served.


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    3) Quality of Hire - (Average performance score of headcount
    within 0-1 years of services/Average performance rating of
    total headcount [exc. temp staff])
    Tracking performance of new hires against other employees in similar
    positions, quality of hire helps to set performance benchmarks and measures
    the return on investment. Reviewing performance also identifies training
    needs and development pathways for employees.
    Turnover
    The biggest indicator that the recruitment strategy is failing is high turnover of new
    hires. Turnover can be measured in two ways:
    A) Voluntary - (Total Voluntary Separations [exc. temp staff] within 0-1 years
    of service/ Total Headcount [exc. temp staff])
    B) Poor Quality Hire Rates- (Total Separation [exc. temp staff] with less than 1
    years of Service/Total New hires [exc. temp staff] within 1 year)
    When employees leave within their first year can point to poor hiring decisions.
    Such voluntary turnover rates could also be an indicator that an organisation is
    lacking in benefits, support, career development opportunities and more. To stay
    competitive organisations should implement robust on-boarding programs to
    reduce turnover rates.
    Evaluating your recruitment strategy can sometimes be difficult and
    time consuming. However, understanding which methods are delivering
    results helps pinpoint the policies and recruitment strategies to adopt in order
    to secure and retain high performing candidates.
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    Chapter 3: Selection

    The size of the labour market, the image of the company, the place of posting, the
    nature of job, the compensation package and a host of other factors influence the
    manner of aspirants are likely to respond to the recruiting efforts of the company.
    Through the process of recruitment the company tries to locate prospective
    employees and encourages them to apply for vacancies at various levels.
    Recruiting, thus, provides a pool of applicants for selection.
    3.1 Definition
    To select mean to choose. Selection is the process of picking individuals who have
    relevant qualifications to fill jobs in an organisation. The basic purpose is to
    choose the individual who can most successfully perform the job from the pool of
    qualified candidates.
    Dale Yoder defines selection as the process in which candidates for employment
    are divided in to two classes those are to be offered employment and those who
    are not.
    According to Thomas Stone, selection is the process of differentiating between
    applicants in order to identify and hire those with a greater likelihood of success
    on the job




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    3.2 Purpose
    The purpose of selection is to pick up the most suitable candidate who would meet
    the requirements of the job in an organisation best, to find out which job applicant
    will be successful, if hired. To meet this goal, the company obtains and assesses
    information about the applicants in terms of age, qualifications, skills, experience,
    etc. the needs of the job are matched with the profile of candidates.
    The most suitable person is then picked up after eliminating the unsuitable
    applicants through successive stages of selection process. How well an employee is
    matched to a job is very important because it is directly affects the amount and
    quality of employees work.
    Any mismatched in this regard can cost an organisation a great deal of money, time
    and trouble, especially, in terms of training and operating costs.
    In course of time, the employee may find the job distasteful and leave in
    frustration. He may even circulate hot news and juicy bits of negative
    information about the company, causing incalculable harm to the company in the
    long run. Effective election, therefore, demands constant monitoring of the fit
    between people the job.
    3.3 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.

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    At each step facts may come to light, which are useful for comparison with the job
    requirement and employee specifications.
    Steps in Scientific Selection Procedure:
    Job analysis
    Recruitment
    Application form
    Written examination
    Preliminary interview
    Tests
    Medical examination
    Reference checks
    Line manager s decision
    (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.

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    (C) RECRUITMENT:
    Recruitment refers to the process of searching for prospective employees and
    stimulating them to apply for jobs in an organization. It is the basis for the
    remaining technologies of the screening the candidates in order to select the
    appropriate candidates for the jobs.
    (D) DEVELOPMENT OF BASES FOR SELECTION:
    The company has to select the appropriate candidates from the pool of applicants.
    The company develops or borrows the appropriate bases/techniques for screening
    the candidates in order to select the appropriate candidates for the jobs.
    (E) APPLICATION FORM:
    Application form is also known as application blank. The techniques of application
    blank are traditional and widely accepted for securing information from the
    prospective candidates. It can also be used as a device to screen the candidates at
    the preliminary level. Many companies formulate their own style of application
    forms depending upon the requirement of information based on the size of the
    company, nature of business activities, type and level of the job etc.
    Information is generally required on the following items in the application forms:
    Personal background information
    Educational qualifications
    Work experience
    Salary (drawing and expecting)
    Personal attainments including likes and dislikes
    References

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

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

    APTITUDE TESTS:
    These tests measure whether an individual has the capacity or latent ability to learn
    a given job if given adequate training. Aptitudes can be divided into general and
    mental ability or intelligence and specific aptitudes such as mechanical, clerical,
    manipulative capacity etc. General aptitude test is of two types namely intelligence
    quotient (IQ) and emotional quotient (EQ).

    (1) Skill tests:
    These tests measure the candidate s ability to do a job perfectly and intelligently.
    These tests are useful to select the candidates to perform artistic jobs, product
    design, design of tools, machinery etc. The candidates can be selected for assembly
    work, testing and inspection also.

    (2) Mechanical aptitude tests:
    These tests measure the capabilities of spatial visualization, perceptual speed and
    knowledge of mechanical matter. These tests are useful for selecting apprentices,
    skilled, mechanical employees, technicians etc.





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    (3) Psychomotor tests:
    These tests measure abilities like manual dexterity, motor ability and eyehand
    coordination of candidates. These tests are useful to select semi-skilled workers
    and workers for repetitive operations like packing and watch assembly.

    (4) Clerical aptitude tests:
    These types of tests measure specific capacities involved in office work. Items of
    this tests include spelling, computation, comprehension, copying, word measuring
    etc.
    ACHIEVEMENT TESTS:
    These tests are conducted when applicants claim to know something as these tests
    are concerned with what one has accomplished. These tests are more useful to
    measure the value of a specific achievement when an organization wishes to
    employ experienced candidates. These tests are classified into (a) job knowledge
    test and (b) work sample test. Thus, the candidate s achievement in his career is
    tested regarding his knowledge about the job and actual work experience.
    SITUATIONAL TESTS:
    This test evaluates a candidate s in a similar real life situation. In this test the
    candidate is asked either to cope with the situation or solve critical situations of the
    job.
    (1) Group discussion:
    This test is administered through the group discussion approach to solve a problem
    under which candidates are observed in the areas of initiating, leading, proposing
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    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, decisiveness, sociability, conformity, objectivity, patience, fear,
    judgment dominance or submission, impulsiveness, sympathy, integrity, stability
    and self-confidence.


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    (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 multi-dimensional testing in
    order to find out whether the candidates possess a variety of skills or not, candidate
    s ability to integrate the multi-skills and potentiality to apply them based on
    situational and functional requirement.
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    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:



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    PRELIMINARY INTERVIEW:
    (1) Informal interview:
    This is the interview, which can be conducted at any place by the person to secure
    the basic and non-job related information. The interaction between the candidate
    and the personnel manager when the former meets the latter to enquire about the
    vacancies or additional particulars in connection with the employment
    advertisement is an example of the informal interview.
    (2) Unstructured interview:
    In this interview, the candidate is given the freedom to tell about himself by
    revealing his knowledge on various items/areas, his background, expectations,
    interest etc. Similarly, the interviewer also provides information 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.


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    (2) Job and probing interview:
    This interview aims at testing the candidate s job knowledge about duties,
    activities, methods of doing the job, critical/problematic areas, methods of
    handling those areas etc.

    (3) Stress interview:
    This interview aims at testing the candidate s job behavior and level of
    understanding during the period of stress and strain. The interviewer tests
    candidate by putting him under stress and strain by interrupting the applicant from
    answering, criticizing his opinions, asking questions pertaining to unrelated areas,
    keeping silent for unduly long periods after he has finished speaking etc. Stress
    during the middle portion of the interview gives effective results. Stress interview
    must be handled with utmost care and skills. This type of interview is often invalid,
    as the interviewer s need for a job and his previous experience in such type of
    interviews may inhibit his actual behavior under such situations.

    (4) Group discussion interview:
    There are 2 methods of conducting group discussion interviews, viz. group interview
    method and discussion interview method. All the candidates are brought into one
    room and are interviewed one by one under group interview. This method helps a
    busy executive to save valuable time and gives a fair account of the objectivity of
    the interview to the candidates. Under the discussion interview method, one topic is
    given for discussion to the candidates who assemble in one room and they are asked
    to discuss the topic in detail. This type of interview helps the interviewer in
    appraising certain skills of the candidates like initiative, inter-personal skills,
    dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are
    at ease in this category of interview because of its informality and flexibility.
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    (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 judgements. This type of interview is known as panel
    interview. Interviewers for middle level and senior level managers are normally
    conducted are the panel of experts.

    (7) Depth interview:
    In this interview, the candidate would be examined extensively in core areas of job
    skills and knowledge. Experts test the candidate s knowledge in depth. Depth
    interviews are conducted for specialist jobs.
    DECISION-MAKING INTERVIEW:
    After the experts including the line managers of the organization in the core areas
    of the job examine the candidates, the head of the department/section concerned
    interviews the candidates once again, mostly through informal discussion. The
    interviewer examines the interest of the candidate in the job, organization,
    reaction/adaptability to the working conditions, career planning, promotional
    opportunities, work adjustment and allotment etc. The personnel manager 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
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    the decision about the candidate s performance and their ranks in the interview.
    Most of the organizations have realized that employee s positive attitude matters
    much rather than employee s skill and knowledge. Employees with positive
    attitude contribute much to the organization. Hence, interviewers look for the
    candidates with the right attitude while making final decision.
    (K) MEDICAL EXAMINATION:
    Certain jobs require certain physical qualities like clear vision, perfect hearing
    unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical
    examination reveals whether or not a candidate possesses these qualities. Medical
    examination can give the following information:
    Whether the applicant is medically suited for the specific job
    Whether the applicant has health problems or psychological attitudes
    likely to interfere with work efficiency or future attendance.
    The offer. Whether the applicant suffers from bad health which
    should be corrected before he can work satisfactorily It reveals the
    applicant s physical measurements and It is used to check the
    special senses of the candidates.
    (L) REFERENCE CHECKS:
    After completion of the final interview and medical examination, the personnel
    department will engage in checking references. Candidates are required to give the
    names of references in their application forms. These references may be from the
    individuals who are familiar with the candidates academic achievement or form
    the applicant s previous employer, who is well versed with the applicant s job
    performance, and sometimes from coworkers. In case the reference check is from
    the previous employer; information for the following areas may be obtained.

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    They are job title, job description, and period of employment, pay and allowances,
    gross emoluments, benefits provided, rate of absence, willingness of the previous
    employer to employ the candidate again and soon. Further, information regarding
    candidate s regularity at work, character, progress etc. can be obtained.
    Often a telephone call is much quicker. The method of mail provides detailed
    information about the candidate s performance, character and behavior. However, a
    personal visit is superior to the mail and telephone methods and is used where it is
    highly essential to get the detailed, actual information, which can also be secured
    by observation. Reference checks are taken as a matter of routine and treated
    casually or omitted entirely in many organizations. But a good reference check
    used sincerely will fetch useful and reliable information to the organization.
    (M) FINAL DECISION BY THE LINE MANAGER:
    The line manager concerned has to make the final decision whether to select or
    reject a candidate after soliciting the required information through techniques
    discussed earlier. The line manager has to take much care in taking the final
    decision not only because of economic implications but also because 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.



    50 | P a g e


    (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 without 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.








    51 | P a g e


    3.6 Problems in Selection Process
    Barriers to Effective Recruitment and Selection
    Respondents were asked to choose five factors that present the largest barriers to
    effectively recruiting and selecting candidates for employment.

    Finding and competing for qualified applicants are the main
    barriers to effective recruiting and selection practices.
    It appears that there are fewer qualified candidates available for organizations to
    choose from. First, as the baby boom generation approaches retirement, fewer
    applicants are in the job market; second, those who are available might lack the
    skills organizations are looking for. Thus, it is difficult for organizations to
    identify and eventually hire potential qualified candidates.

    Most candidates who refuse job offers do so for reasons related to
    compensation.
    Once an organization has identified a strong candidate and made a job offer,
    there is still no guarantee that the candidate will accept. When asked to
    indicate the most common reasons why candidates refuse offers, most
    respondents cited problems with compensation. However, this does not mean
    that candidates are interested only in compensation. Previous research has
    shown that individuals who leave their positions often do so for reasons other
    than money (Bernthal & Wellins, 2001). However, ones starting salary can
    have major implications for long-term earning potential, and candidates often
    use salary to help decide among similar competing offers.
    52 | P a g e




    Poorly Performing Organizations

    High Performance Organizations







    Organizational Performance in Past Year
    1.0
    2.0
    3.0
    4.0
    5.0
    6.0
    7.0
    8.0
    Financial Productivity Quality Customer
    Satisfaction
    Employee
    Satisfaction
    Retention
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    Barriers Response (%)
    Hard to find candidates with specialized skill sets. 68.4%
    Other organizations competing for the same
    applicants.
    64.7%
    Difficulty in finding and identifying applicants. 49.0%
    Fewer qualified applicants available. 45.6%
    Job roles are increasing in scope. 42.3%
    Selection process is slow or cumbersome. 37.8%
    Obtaining management buy-in for selection
    systems or tools.
    25.2%
    Insufficient number of human resource staff. 23.3%
    Developing or choosing valid selection tools. 22.6%
    Other reason (miscellaneous). 12.9%

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    Reasons for refusing jobs:




    Refusal Reasons Response (%)
    Pay not competitive. 53.7%
    Other offer made
    first.
    33.0%
    Relocation too
    disruptive.
    23.8%
    Poor cultural fit. 21.3%
    Lack of growth
    opportunity.
    18.0%
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    Chapter 4: Company Profile

    HDFC STANDARD LIFE INSURANCE
    HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life
    insurance companies, which offers a range of individual and group insurance
    solutions. It is a joint venture between Housing Development Finance Corporation
    Limited (HDFC Ltd.), Indias leading housing finance institution and one of the
    subsidiaries of Standard Life plc. Leading providers of financial services in the
    United Kingdom. Both the promoters are well known for their ethical dealings and
    financial strength and are thus committed to being a long-term player in the life
    insurance industry all important factors to consider when choosing your insurer.
    HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint
    venture between India's largest housing finance provider, HDFC and Europe's
    largest mutual life assurance company - The Standard Life Assurance Company (U.
    K).
    HDFC Standard Life Insurance Company Limited is the First Private Sector Life
    Insurance Company to be granted a license.




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    4.1 FOREIGN PARTNER:
    Standard Life, UK
    Standard Life, UK, founded in 1825, has been at the forefront of the UK
    insurance industry for 175 years by combining sound financial judgements with
    integrity and reliability. It is the Largest Mutual Life Company in Europe and
    has total assets of Rs. 5, 50,000 crores.
    It is one of the very few insurance companies in the world to have received 'AAA'
    rating from two of the leading international credit rating agencies, Moody's and
    Standard & Poor's. Standard
    Life was recently voted 'Company of the Decade' in U.K. by the Independent
    Brokers called IFAs.
    4.2 THE PARTNERSHIP:
    HDFC and Standard Life first came together for a possible joint venture, to enter
    the Life Insurance market, in January 1995. It was clear from the outset that both
    companies shared similar values and beliefs and a strong relationship quickly
    formed.
    Towards the end of 1999, the opening of the market looked very pro HDFC and both
    companies agreed the time was right to move the operation to the next level.
    Therefore, in January 2000 an expert team from the UK joined a hand-picked team
    from HDFC to form the core project team, based in Mumbai.
    Around this time Standard Life purchased a further 5% stake in HDFC and a 5%
    stake in HDFC Bank.
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    In a further development Standard Life agreed to participate in the Asset
    Management Company promoted by HDFC to enter the mutual fund market. The
    Mutual Fund was launched on 20th July 2000.

    4.3 Incorporation of HDFC Standard Life Insurance Company
    Limited:
    The company was incorporated on 14th August 2000 under the name of HDFC
    Standard Life Insurance Company Limited.
    Their ambition since October 1995, was to be the first private company to re-enter
    the life insurance market in India. On the 23rd of October 2000, this ambition was
    realized when HDFC Standard Life was the only life company to be granted a
    certificate of registration.
    HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
    Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC
    Group, this is the maximum investment allowed under current regulations.
    HDFC and Standard Life have a long and close relationship built upon shared values
    and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
    companies and be the yardstick by which all other insurance company's in India are
    measured.


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    4.4 The HDFC Vision:
    They aim to be the top new life insurance company in the market.
    This does not just mean being the largest or the most productive company in the
    market, rather it is a combination of several things like-
    Customer service of the highest order
    Value for money for customers
    Professionalism in carrying out business
    Innovative products to cater to different needs of different customers
    Use of technology to improve service standards
    Increasing market share
    4.5 The Values:
    SECURITY: Providing long term financial security to our policy holders
    will be our constant endeavor. We will be do this by offering life insurance
    and pension products.
    TRUST: We appreciate the trust placed by our policy holders in us. Hence,
    we will aim to manage their investments very carefully and live up to this
    trust.
    INNOVATION: Recognizing the different needs of our customers, we will
    be offering a range of innovative products to meet these needs.


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    4.6 INCORPORATION OF HDFC STANDARD LIFE
    INSURANCE CO. LTD.
    The company was incorporated on 14
    th
    August 2000 under the name of HDFC
    Standard Life Insurance Company Limited.
    Their ambition since October was the only life insurance company to be granted the
    certificate of registration.
    HDFC are the main shareholders in HDFC Standard Life Insurance Co. Ltd. With
    83% and Standard Life owns 17%
    4.7 AWARDS AND ACCOLADES
    Indias best managed company by Asia money magazine - 1995 and 1996
    Most competitive Indian company by Euro money 1997
    One of the 5 best Indian Boards by Business Today -1997
    Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC
    region by the South Asian Federation of Accounts in the financial sector
    category
    Rated as one of the best companies in India for strategy & management and
    investor relations by Asia money 1998
    Excellence in service industry by the Indian Institute of Marketing
    Management & Top Management Club (Pune) -1998
    Shield for the best presented accounts for banks and financial institutions -
    over 11 times (8 years in a row)
    1999 IMC Ramakrishna Bajaj National Quality Award in the service
    category

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    CII-EXIM Bank Commendation Certificate for commitment to Total Quality
    Management 2000
    Asia money declared HDFC as the second best managed company in India
    2001
    Euro money identified HDFC as one of Asias top 10 best managed companies
    in the finance sector 2001
    Rated as the Best Non-Banking Financial Company in Asia by Institutional
    Investor Research Group.

    4.8 POLICIES IN HDFC STANDARD LIFE INSURANCE
    Insurance Products
    1. Endowment Assurance Plan
    This plan is a with profits saving plan and is well suited for saving money for your
    long term financial goals. This plan also helps provide for the needs of your family
    in your absence by paying out a lump sum in the event of your unfortunate death
    during the term of the policy.
    Indicative Premium*
    Age
    (yrs.)
    Basic Policy
    Premium (Rs.)
    Additional Premium
    for optional benefits (Rs.)
    CI DSA ADB WOP
    20 4771 304 322 136 236
    30 4835 442 388 144 300
    40 5098 925 641 156 475
    50 5813 - 1357 - -
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    The above quoted premium is for a male life assured for a period of 20 years
    and a sum assured of Rs. 1lakh. The premium quoted above may vary as a
    result of underwriting. The premium relatable to all the optional benefits put
    together should not exceed 30% of the premium of the basic policy.

    - Single Life Endowment Plan
    - Joint Life Endowment Plan
    -
    2. Money Back Plan
    This plan helps you plan for future anticipated expenses by paying periodic cash
    lump sums to you at regular intervals. This plan also helps provide for the needs of
    your family in your absence by paying them the basic sum assured plus any bonus
    additions in the event of your unfortunate death during the term of the policy.
    Indicative Premium* for the basic policy
    Age
    (yrs.)
    Basic Policy
    Premium (Rs.)
    Additional Premium
    for optional benefits (Rs.)
    CI DSA ADB WOP
    20 7491 304 322 136 352
    30 7585 442 388 144 443
    40 7925 925 641 156 672
    50 8815 1890 1357 - -
    - Single Life Endowment Plan
    - Joint Life Endowment Plan
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    3. Single Premium Whole of Life Plan
    Single Premium Whole of Life Insurance Plan is well suited to meet your long term
    investment needs. This participating (with profits) plan offers you the following
    benefits:
    A sound investment
    Flexibility of term
    Surrender value
    In case of unfortunate death
    No medical requirements

    Indicative Premium
    Minimum sum assured : Rs. 25,000
    Maximum sum assured : Rs. 5,00,000
    Premium: Rs. 950 per thousand of sum assured.

    4. Term Assurance Plan
    If you have a family that you care for, you should consider what would happen in
    case of your unfortunate death. The emotional void cannot be filled, but financial
    insecurity can be avoided. By taking this affordable life insurance plan, you can
    provide for the well-being of your family in case of your unfortunate death. This
    plan comes to you at a minimal cost and is well-suited for the value-conscious
    customer.

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    Indicative Premium
    Age of
    Life Assured
    Premium* (Rs.) Single
    Premium (Rs.)
    Quarterly Half-yearly Yearly
    20 yrs. 467 862 1566 11970
    25 yrs. 495 914 1662 13110
    30 yrs. 529 979 1782 15726
    35 yrs. 579 1074 1956 18216
    40 yrs. 790 1473 2688 26400


    * The premium quoted is for a healthy male, paying premiums for a 15 year term for
    a sum assured of Rs. 6, 00,000. The exact premium may vary as a result of
    underwriting.
    5. Loan Cover Term Assurance
    If you are taking a loan to buy a house for your family, this plan can help you ensure
    that life's uncertainties do not affect their shelter. It is an affordable plan that has
    been designed to help your family repay the outstanding loan in case of your
    unfortunate death.



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    Indicative Premium* for the basic policy
    Annual Premium**
    (Rs. p.a.)
    Single Premium
    (Rs.)
    Term of loan (in yrs.) Term of loan (in yrs.)
    Age of Life Assured 10 15 10 15
    30 yrs. 1592 1634 5781 7993
    35 yrs. 1757 1799 6324 9152
    40 yrs. 2114 2163 8515 12991
    45 yrs. 2782 2915 10636 16663
    50 yrs. 3955 4175 15921 25038

    * The premium quoted above may vary as a result of underwriting. The above rates
    are for a male life assured for an initial sum assured of Rs. 3.5 lakh.
    ** In case of annual premium payment, the premium is to be paid for only the first
    2/3 rd of the term while the cover continues for the full term.
    Types of series
    - Single Life Protection Series
    - Joint Life Protection Series





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    6. Personal Pension Plans
    This participating (with profits) plan is basically a savings contract, which is
    designed to provide an income for life from retirement. It does this by providing a
    notional 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. Alternatively, if it is permitted by the prevailing regulations, the
    notional lump sum can be used to buy an annuity with any other insurance
    company who will accept such business.
    On earlier death after the first year, for Regular Premium policies all premiums
    paid to date will be returned with interest at 8% per annum, subject to a maximum
    of the sum assured plus bonuses declared to date. For Single premiums, it is sum
    assured plus bonuses declared to date.
    Normally, they will declare a reversionary bonus once a year. Once added, it
    cannot be reduced. Reversionary bonus will take the form of a simple addition to
    your policy benefits.
    In addition, on maturity, a terminal bonus might be payable. On death, an interim
    bonus, reflecting the period since the last addition of reversionary bonus, might
    also be payable.
    How much will it cost?
    The cost of the plan depends on your age, the amount of benefit you have chosen,
    the premium paying frequency and the term of the policy. To give you an idea,
    here are the annual premiums in Rupees, payable on a policy with sum assured of
    Rs. 100,000.
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    Term
    Age 10 15 20
    30 n/a n/a 4,309
    35 n/a 6,098 4,327
    40 9,577 6,117 4,357


    For Single premium policies, the premium payable with respect to the basic benefit
    is equal to the basic sum assured as required by the policyholder.

    Am I eligible?
    The age and term limits for taking out a Personal Pension Plan are:
    Minimum
    Term3
    Maximum
    Term
    Minimum
    Age at
    Entry
    Maximum
    Age at
    Entry
    Minimum
    Age at
    Retirement
    Maximum
    Age at
    Retirement
    RP1 SP2 RP SP RP SP
    60

    50

    70
    10 5 40 15 18 35
    RP: Regular Premium 2 SP: Single Premium 3 Term to Retirement
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    Chapter 5: Recruitment in HDFC Life
    Recruit the best

    HDFC Life has a well-articulated equal opportunity policy, which
    lays strong emphasis on hiring of individuals irrespective of age, race,
    caste or gender. As a best practice in recruitment, they deploy
    identified psychometric tools such as SHL and Belbin and designate
    ability tests to eliminate any biases in the resourcing process and
    facilitate hiring of diverse profiles (vis--vis gender, background,
    experience levels and competencies). The focus is on competence-
    based credentials rather than past experience or length of service.

    HDFC does not follow a very descriptive hierarchy you have
    transparency at each level, unlike most other organizations, where
    managers and senior management dont look after their subordinates.
    Here you feel comfortable talking with your seniors

    At HDFC they have an Employee Referral Programme, which seeks
    to encourage employees to be brand ambassadors of the Company and
    actively contribute to the resourcing process by recommending
    candidates with relevant competencies and potential, thereby
    facilitating in strengthening domain expertise within the
    Organization.

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    They have a robust Campus Programme, which is aimed at hiring
    students fresh from key B-Schools and providing them with structured
    inputs and an environment for their personal and professional growth.
    The Summer Trainee Program is designed to expose people to the
    vibrancy of a complex and competitive business environment,
    challenge you intellectually and encourage people to find innovative
    solutions.
    They aim at providing a business perspective and Summer Trainees
    work on live projects, which form the core of our business strategy.
    Not only do they get the freedom to experiment and make decisions,
    but also spend quality time with their Project Guide or mentor, who
    provides them the perspective of the 'bigger picture'. The Programme
    thus gives them a unique opportunity to integrate their classroom
    learning with the realities of real business, in a live yet safe
    environment.







    69 | P a g e


    Recruitment Process
    The actual steps involved in recruitment follow a well-defined path:
    Application shortlist: In this step, we shortlist the resume
    received from various sources based on the suitability for the
    requirement.
    Preliminary Assessment: The short listed candidates go
    through a preliminary round of interviews. This interview lays more
    emphasis on functional competencies. To have more data on the
    functional skills, the candidates may be given a business case for
    analysis and presentation (This is done for certain positions only).
    Final interview: Here the candidates who successfully clear the
    first round of interview go through another round of interview with
    one or more of the functional heads.
    Medical Evaluation: Candidates who are selected by Colgate are
    asked to undergo a medical test.



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    Question: What are the sources for recruitment and selection?


    About 75% of the manager say that they prefer both internal as well as external
    source for recruitment and selection whereas only 9% go for internal source and
    18% go for external sources.










    Internal
    9 %
    External
    18 %
    Both
    73 %
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    Question: Which method do you mostly prefer for recruitment
    and selection preferred way of recruitment?

    Third

    About 65% of the mangers go for direct recruitment and selection and 32% go for
    indirect and only 3 % go for third party recruitment way.



    Direct
    65 %
    Indirect
    32 %
    party
    3 %
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    Question: When do you prefer to go for manpower planning?





    Yearly
    Quarterly
    No fixed Time



    Around 50% of the managers go for Quarterly manpower planning
    and 20 % do not follow any pattern they dont have any fixed time
    where as 20% go for yearly.
















    20 %
    50 %
    30 %
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    Question: What sources are preferred for external
    recruitment?




    Campus
    interviews
    Placement
    agencies Data
    bank
    Casual
    applicants



    In HDFC Life 34% of manager go for campus interviews, 33% go for data
    bank, 25% from the casual application that are received and only 8% go for
    any placement agencies.











    34 %
    8 %
    33 %
    25 %
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    Question: What form of interview did you prefer?



    Personal
    Interviews
    Telephonic
    interview
    Video
    Conferencing
    Other



    Most of the manager Prefer Personal interviews, 30% prefer to take
    telephonic interviews whereas only 20% go for video conferencing
    and rest 10% adopt some other means of interviews
















    40 %
    30 %
    20 %
    10 %
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    Recruitment Process in HDFC Life:

    1) 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, and place of posting etc. the advertisement is
    released in all major and national newspaper across the country.

    2) Not only print media, but other media like internet is also used for posting
    the advertisement.

    3) Placement agencies and educational institutions are considered if the
    requirements are for fresh graduates.

    4) Employee references by are also encouraged.

    5) After receiving the applications, it is initially screened by HR division
    based on minimum requirements and qualifications prescribed for the post.

    6) Screened applications from HR division are posts sent to respective
    divisional heads for their screening in case of applications for higher Posts.




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    Chapter 6: Selection Process in HDFC Life
    6.1 Actual Process in HDFC
    1) 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.

    2) For technical posts, tests are used as elimination means while for some
    other posts like management trainee, tests are not used as elimination means.


    3) 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.

    4) Job offers are made to the selected candidates and they are asked to give
    their confirmation that they accept the job offer.

    5) On receiving their confirmation, appointment letter is prepared by personnel
    and administration division and given to the candidate at the time of joining.

    6) Salary offer is a part of Human resource division while personnel and
    administration division handles salary administration.


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    6.2 Percentage of Selection practices used in HDFC Life
    Selection Practices
    Practices
    used
    %
    Behavior-based interviewsasking candidates to describe
    specific examples of their skills 49
    Resume screeningcomputerized 48
    Knowledge teststests that measure job-specific knowledge 40
    Performance/Work sample testsfor example, writing a computer
    program under structured testing conditions
    40
    Motivational fit inventoriescandidate preferences for the job, the
    organization, and location qualities
    36
    Ability testsmental, clerical, mechanical, physical, or technical 36
    Personality inventoriesMMPI

    , Hogan, Myers-Briggs

    36
    Assessmentsrole plays and simulations 33
    Training and experience evaluationsproviding a checklist of specific skills and/or experiences

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    HDFC Life Selection Process in Details
    6.3 Screening the candidates
    First level screening
    The Candidates would be screened by the H R Manager/ Branch Manager for the
    respective locations. Screening would be on the basis of the profile of the
    candidate and the departmental requirements.
    This assessment will be with respect to:
    a.) The general profile of the candidate,
    b.) Personality fit of the candidate into the profile,
    c.) Aptitude / attitude of the candidate,
    d.) Motives of the person to join the company and whether focus is in the
    short term or is a long term player,
    e.) Basic skill level on our set of requirements, say numerically ability,
    networking ability etc.
    f.) Establish the annual guaranteed cash compensation of the individual
    and check whether the person would fit into the system.
    g.) Explain the role of Sales manager to the applicant and check the
    acceptance of the candidate for the same.



    79 | P a g e


    In case of need, the Regional HR may take a Tele interview of the candidate for
    further assessment process.
    Second Level Screening
    Aptitude Test
    If the first assessment is positive, the candidates will give the aptitude test, once
    such test is selected approved by the company. The scoring, interpretation and
    the generation of interview probes from that test will also be done at this time.
    People who qualify the minimum criteria on this test will be put up on to the
    Functional Head (VP's in case of HO) for functional assessment and suitability
    into the role.
    Tied Agency Sales Manager candidates short listed by the BM have will then take
    sales Aptitude test, once such a test is finalized. For the final selection, the regional
    Manager (Business Heads for HO) will meet the candidates short listed by the
    branch manager/VP. The chart specifying the Minimum approval level for each
    level of recruitment is specified below:

    General Norms regarding interview Process:
    A) Interviews should consider the entire data provided by the candidate either
    through the formal CV or otherwise before coming to a conclusion about the
    candidate. They may insist on seeing the proof of the claims made by the
    candidate regarding qualifications, experience and other achievements. They
    may, at their discretion, decide to meet the candidate on more than one
    occasion or to refer the candidate to another panel.

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    B.) Ratings on various attributes of the candidates shall be recorded in the
    interview evaluation sheet, soon after the interview is over. Along with these
    numerical ratings, qualitative observations about the candidate and overall
    decision regarding selection or otherwise (including a decision to defer the
    induction, referral to another panel, considering for another position) shall be
    forwarded to the associated Recruitment Manager/ Head of Regional HR.
    Individual panel members have the option of appending their additional remarks
    / observations. No election will be treated as final unless the IES form is filled
    comprehensively. Suitably appropriate IES formats may be created for specific
    positions.

    C) Any discrepancies noticed by the panel members regarding the authenticity of
    the data provided by the candidate should be specifically and formally recorded
    on the IES form and suitably high lightened.
    Category Branch/Chief
    Manager
    Area
    Manager/AVP/VP
    Business
    Heads
    Managing
    Director
    CSE/
    ADVISORS
    Yes No No No
    BIC Yes Yes No No
    BM/CM Yes Yes Yes No
    SM Yes Yes Yes Yes
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    D.) Specific points to be probed during the reference check process, if any, must
    also be clearly recorded and high lightened on the IES forms.

    Administrative Actions Regarding Interviews
    A. Scheduling and the venue of the interviews would be handled by the
    recruitment team in consultation with the short listed candidate and the selection
    panel members, after taking mutual convenience into account. For field positions
    respective branch / regional heads would undertake this co-ordination.

    B) After the final round, if the candidate is selected, the complete set of papers
    Personal Data Form, CV, job requisition no., Interview evaluation sheet,
    reference check details, educational details, along with the interviewer's
    recommendations and Reference check form should be forwarded by the
    recruitment managers to recruitment head. Fitment of the candidate into a grade
    and compensation fitment shall be on the assumption of authenticity of the
    information provided in the CV / application form.

    C.) An appropriate formal communication shall be sent to the candidate whose
    candidature is not being taken forward, or details of the verbal/ telephonic
    communications provided to the candidate shall be recorded on the candidates
    papers, by the recruitment team/ associated line managers. In the case of
    interviews taking place at the branch / regional levels, similar noting should be
    recorded on the individual candidate's papers.

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    Negotiations of the terms and conditions and other pre-
    appointment formalities
    A.) In the case of sales-Tied Agency functions, the branch managers will be
    allowed to fix the salary and grade of the incoming sales manager, provided
    the compensation does not exceed 20% of the candidates current cash salary.
    Any fitment beyond this norms will need the approval of Head-HR. HR will
    forward a worksheet to support the BMs to evaluate the appropriate cash
    CTC of the incumbent. For all other functions, the compensation and grade
    would be fixed post a discussion between the Head of the Regional HR and
    the associated AVP / VP. Any candidate being offered a CTC of more than
    4lacs will need the sign off from HEAD-HR. In appropriate cases, at the
    discretion of the VP-HR, a deviation may be referred to the Managing
    Director, for the MD's formal approval.
    B) Responsibility for negotiations and finalization of the terms shall rest with
    the best Branch Manager / Associated Manager. They may seek the
    assistance of the recruitment managers, whenever required. Reference
    checks process should not normally be initiated unless the candidate has
    indicated his firm acceptance of the offer being made by us.
    Reference checks
    A. Normal, reference checks should be undertaken with at least one reference. A
    second reference check will be done if considered necessary. Responsible
    officials from the former employers, academic institutes and / or any other
    eminent personalities can be considered as appropriate references. Close
    relatives and friends cannot be considered as references. Wherever feasible and
    considered appropriate, a reference should be made with a senior official of the
    candidate's current employer.
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    In case the candidate is currently un-employed, reference should be made with
    the latest employer. The format of reference check is to be used as a framework
    for conducting the process.
    B. Where the minimum two reference checks are not possible (particularly with the
    current employer) or where there is a mixed response from different sources, the
    matter may be to the VP-HR for a final decision. Depending on the seniority and
    any other considerations about the positions, VP-HR would normally consult the
    functional head concerned, before coming to conclusions. Any candidate whose
    credentials are doubtful shall not be recruited.
    C. In case of recruitment of Management trainees, fresher and life advisors as
    sales Managers no reference checks will be required.
    Employment offer letter
    A. When a recruitment Manager is fully satisfied about the selection of the
    right candidate and about completion of all the formalities connected with
    the appointment of candidate including requisite documentation,
    satisfactory reference check reports and medical fitness, he / she would
    forward the relevant papers listed below to the head of recruitment.
    Personal Data form
    Employee requisition form duly filled by the regional Head / Branch
    Manager
    Interview evaluation sheet filled by the regional head / Branch manager /
    interviewer with his / her comments.
    Latest and updated resume of the candidate
    Photocopy of the appointment letter of the last employer or latest salary
    slip.
    Employment details.
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    Two Professional references.
    Language Proficiency.

    Document check list for every grade is as follows:
    Authorization Release Form.
    Background check Form.
    Higher Education certificate.
    Higher Education mark sheet.
    1 Month Salary Slip of Current Employer.
    1 Month Salary Slip of Last Employer.
    Relieving Letter of last Employment.
    Proof of Residence.
    Passport Size Photograph.

    C) Regional HR manager will take the signature of Head-H R on the employee
    requisition form and forward the papers to the employee service team for
    issuance of the offer letter.

    D) Employee services team will issue offer letter, to be signed by the National
    Recruitment Manager or Chief Manager-H R, and send the same to the
    concerned Branch Manager/ HR Manager.


    E) It would be the responsibility of the Branch Manager/ HR Manager to
    ensure that the accepted copy of the offer letter is forwarded to the employee
    service team within a week of receipt of the offer letter. Till this letter is
    issued, the offer' has not taken place in formal sense.
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    A copy of the offer letter shall be duly signed and returned to the candidate.
    Candidate would be expected to fulfil various joining formalities, which are
    also formally communicated to hi m/ her in the form of a checklist that is
    attached to the letter of offer. The Regional HR head shall have the overall
    responsibility and accountability to maintain the templates of the offer
    letters and also for drafting of suitable non-standard terms to any specific
    candidate.

    F) The employee service team will follow up Branch Manager / Regional HR
    Manager for the joining of the candidate and will collect all relevant
    documents from the candidate including the joining report, before issuing
    the appointment letter. The employee service team may enlist the help of the
    Branch Manager to ensure that all necessary documents within ten days 0
    the person joining. After the all necessary documents, the employee service
    team will send the appointment letter to the new joiner.


    G) Once the documentation is complete for the new joiner (including the
    accepted appointment letter), people who may have joined before 20th of the
    month but have not been included in the payroll 1 for the month because of
    delay in receipt of papers will be given ad-hoc salary advance (up to
    maximum of 65% of the prorated salary). This advance will be adjusted
    once the person gets included in the subsequent month's payroll.





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    H) If the person does not submit the relieving letter from the previous
    organization, where required to be submitted as per the table given above,
    within three months of joining, the employee service manager can put their
    salary on hold till such time as the said documents are received.

    Key tasks of Regional HR Head
    Regional H R Head will have the authority and responsibility to administer/
    implement the recruitment and selection process as outlined. An illustrative list
    of the key deliverables of these incumbents is listed below.
    Ensuring inductions as per quality, numbers, time and cost consideration of
    the company in accordance with the approved manpower budget.
    Creation of appropriate sourcing mechanism along with tracking the
    performance of these mechanisms.
    Creation of quarterly and monthly recruitment plans
    Effective coordination with external parties such as candidates, placement
    agencies, consultants, academic / professional institutes and any other
    including the custody of the formal agreements, tracking timely payments
    and adjusted thereto.
    Creation of comprehensive and appropriate tools, linkage s, documents,
    templates and any other mechanisms to ensure smooth execution of the
    process requirement, along with timely improvements thereto.
    Assistance to user department and line managers including in Interviewing /
    selection support, scheduling etc.
    Effective internal communication with user departments and line managers
    including making the standard recruitment formats and other templates

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    easily available to such users and notifying the modifications to such formats
    and templates.
    Creation and maintenance of qualitative information base regarding
    candidates, placement agencies, campuses, institutes, and any other
    employment-market information.
    Creation and maintenance of appropriate and high-quality Ml S for current
    and future needs of the organization, including publication / circulation of
    appropriate reports there from to the relevant users within the company.
    Monitoring recruitment costs
    Complete documentation for the entire recruitment and selection process for
    easy and quick retrieval in a readily auditable format.
    Timely and effective communication with all internal and external parties
    including the candidates.
    Tracking the progress of the selected candidates including resignation,
    extensions of probation periods/ training period, etc. for the purpose of
    improvement to recruitment and selection process.
    Effective coordination with the post recruitment arm of the Human Resource
    function
    Documentation and creating MIS regarding waiver, deviation, etc. and
    identifying the key areas for improvement in the formal recruitment and
    selection process document.
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    Conclusion

    With introduction of the foreign sector in the field of Insurance, it has become
    extremely competitive. Insurance involves tiring field work and tele-contacting, the
    prospective customers to persuade them and convince them about future benefits
    of the insurance scheme.
    The HDFC Life, a multinational insurance concern, is busy in recruiting and
    selecting employees tactfully, skillfully and with expertise. In view of the
    competition, especially in the private sector, the HDFC Life, makes efficient sales
    team effort with expertise and acumen to create excellent customer relationship
    management with great online support and personal contacts.
    The HDFC Life is one of the most prominent insurance companies with
    international expertise and experience.

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    References
    Webliography:
    www.hdfclife.com
    www.irda.com
    Bing Finance Application for Windows 8
    www.economictimes.com
    www.wallstreet.com
    www.scribd.com
    www.glassdoor.com
    www.likedin.com
    Bibliography
    Books:
    HRM in Banking and Insurance Vinay Prabhu & Bharat Pithadia
    Development Dimensional International Survey Reports 2014
    The Indian Insurance Industry Performance Reports
    HDFC Life Employee Manual.
    HR policies in HDFC
    Manual of Insurance by Bharat Law House
    Magazines:
    Insurance World.
    The Outlook Money.
    India Today
    Business World

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