Introduction

The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.

What is the focus of HRM department?

The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell. (Dr. James Spina, former head of Executive Development at the Tribune Company). HRM is involved in managing the human resources with a focus on expanding customer base that gives profit to the company. The bottom line of the company is the focus of the HRM department as well as the function.

Contributing to the Bottom-line of the Company through HR Top-line Activities

A growing body research shows that progressive HRM practices have a significant effect on corporate bottom-line and middle-line performance. The positive effect on financial performance, productivity, product and service quality, and cost control are documented by researchers.

High-performance work systems (HPWS) is a term used to describe a collection of HR practices or characteristics of HR systems designed to enhance employees competencies so that employees can be a reliable source of competitive advantage. A summary of the research on HPWS indicated that a one standard deviation of improved assessment on a HPWS measurement tool increased sales per employee in excess of $15,000 per employee, an 8 percent gain in labor productivity.

The Activities of Human Resources Management

The activities performed by HRM professionals fall under five major domains:

(1) Organizational design, (2) Staffing, (3) Performance Management and Appraisal, (4) Employee and Organizational Development, and (5) Reward Systems, Benefits ad Compliance

Acquiring human resource capability should begin with organizational design and analysis. Organizational design involves the arrangement of work tasks based on the interaction of people, technology and the tasks to be performed in the context of the objectives, goals and the strategic plan of the organization. HRM activities such as human resources planning, job and work analysis, organizational restructuring, job design, team building, computerization, and workermachine interfaces fall under this domain.

Recruitment, employee orientation, selection, promotion, and termination are among the activities that fit into the staffing domain. The performance management domain includes assessments of individuals and teams to measure, and to improve work performance. Employee training and development programs are concerned with establishing, fostering, and maintaining employee skills base don organizational and employee needs.

Reward systems, benefits and compliance have to do with any type of reward or benefit that may be available to employees. Labor law, health and safety issues and unemployment policy fall under compliance component.

Major Trend Affecting HRM

The following trends have an effect on human resource management function and department. The importance of HRM increases due to some of them and the practices of HRM are affected to some extent due to some of them.

1. Increased globalization of the economy. 2. Technological changes and environmental changes. 3. The need to be flexible in response to business changes. 4. Increase in litigation related to HRM. 5. Changing characteristics of the workforce.

The Importance of HRM Measurement

Many HRM systems and activities are not subjected to systematic measurement. Many organizations do not assess either the short- or long-term consequences of their HRM programs or activities. A recurring theme of the book is that measurement and accountability are key components to organizational effectiveness and competitive advantage. Good measurement, allied with business strategies, will help organizations select and improve all of their HRM

activities and provide a much stronger connection between HRM activities and organizational effectiveness.

Stanford University professor Jeffrey Pfeffer considers measurement to be one of the keys to competitive advantage. His book Competitive Advantage Through People cites measurement as one of the 16 HRM practices that contribute the most to competitive advantage.

A new book entitled The Workforce Scorecard by Professors Mark Huselid, Brian Becker, and Dick Beatty extends research on the "balanced scorecard" to a comprehensive management and measurement system to maximize workforce potential.

Competitive Advantage and HRM

Competitive Advantage refers to the ability of an organization to formulate strategies that place it at favorable position relative to other companies in the industry. Two major principles, namely customer value and uniqueness, are relevant for gaining competitive advantage.

Competitive advantage occurs if customers perceive that they receive more value form their transaction or relationship with an organization than from its competitors. HRM needs to make efforts to ensure that all employees are focused on understanding customer needs and expectations.

The second principle of competitive advantage derives from offering a product or service that your competitor cannot easily imitate or copy.

The status of HRM is improving relative to other potential sources of competitive advantage for an organization. Professor Pfeffer notes that "traditional sources of success (e.g., speed to market, financial, technological) can still provide competitive leverage, but to a lesser degree now than in the past, leaving organizational culture and capabilities, derived from how people are managed, as comparatively more vital."

For success in 21st century, HRM activities must be (1) responsive to a highly competitive marketplace and global business structures, (2) closely linked to business strategic plans, (3) jointly conceived and implemented by line and HR managers, and (4) focused on quality, customer service, productivity, employee involvement, teamwork, and workforce flexibility.

Importance of Study of HRM for Students Specializing in Other Functional Areas of Management
Even as line managers in any functional department, management students are likely to manage people at some point in their career. Research shows that the manner in which one conducts the human resource responsibilities of the management job will be the key for effectiveness and growth in ones career

Definition (concept for 2 marks) - Edwin Flippo defies HRM as planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved. Features of HRM or characteristics or nature (3 or 4 marks) 1. HRM involves management functions like planning, organizing, directing and controlling 2.It involves procurement, development, maintenance of human resource 3. It helps to achieve individual, organizational and social objectives 4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology. 5. It involves team spirit and team work. Evolution of HRM (for 10 or 5 marks) The evolution of HRM can be traced back to Kautilya Artha Shastra where he recommends that government must take active interest in public and private enterprise. He says that government must provide a proper procedure for regulating employee and employee relation

In the medieval times there were examples of kings like Allaudin Khilji who regulated the market and charged fixed prices and provided fixed salaries to their people. This was done to fight inflation and provide a decent standard of living During the pre independence period of 1920 the trade union emerged. Many authors who have given the history of HRM say that HRM started because of trade union and the First World War. The Royal commission in 1931 recommended the appointment of a labour welfare officer to look into the grievances of workers. The factory act of 1942 made it compulsory to appoint a labour welfare officer if the factory had 500 or more than 500 workers. The international institute of personnel management and national institute of labour management were set up to look into problems faced by workers to provide solutions to them. The Second World War created awareness regarding workers rights and 1940s to 1960s saw the introduction of new technology to help workers. The 1960s extended the scope of human resource beyond welfare. Now it was a combination of welfare, industrial relation, administration together it was called personnel management. With the second 5 year plan, heavy industries started and professional management became important. In the 70s the focus was on efficiency of labour wile in the 80s the focus was on new technology, making it necessary for new rules and regulations. In the 90s the emphasis was on human values and development of people and with liberalization and changing type of working people became more and more important there by leading to HRM which is an advancement of personnel management. Scope of HRM/functions of HRM The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows 1.Human resources planning :Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2.Job analysis design :Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. 3.Recruitment and selection :-

Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM.
4.Orientation and induction :-

Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.
5.Training and development :-

Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount.
6.Performance appraisal :-

Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.
7.Compensation planning and remuneration :-

There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8.Motivation, welfare, health and safety :Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. 9. Industrial relations :Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

ACKNOWLEDGEMENT
I would like to convey my heartiest gratitude to several people, for their support and guidance which helped me complete my Summer Internship. First and foremost I would like to thank HDFC Standard Life Insurance Co. Ltd., Somajiguda Branch for giving me an opportunity to do my internship in their esteemed organization. My special appreciation extends to Mr. P. Srinivas Rao (Branch Sales Manager) , Mr.Venkata S Boppanna (Sales Development Manager) and Mr. K. Srikant (Branch Training Manager)of HDFC SLIC Somajiguda Branch for their constant encouragement through out this period. I would also like to thank our Campus Co-ordinator, Mr. G. Murali Krishna. And also Ms. Neha Saxenaand Ms. Barnali for their guidance and unflinching support through out the phases of my internship. My special thanks to my classmates and dear friends, Mr. Santosh Kumar, Mr.U. Krishna Rao, Mr. Praveen Kumar and Mr. B Tirupathi for their support through out my internship. With their help I could complete my work efficiently and effectively. Last but not the least, my endless appreciation goes to my family who has stood by my side and given me moral support whenever I was low and boosted my will power.

Thank You.

EXECUTIVE SUMMARY
This internship report consists of the overall experience of online working as a part of HDFC Standard Life Insurance Co, Ltd. This experience helped me understand the basic functioning of the organization where I was inducted. My Internship program - Project Title: Performance Appraisal System of

HDFC SLIC.
The best learning experience was that I started from the very basics of getting to that position and not from the position itself. This helped me get useful insight and understanding of online marketing, the benefits to the members as well as the HDFC Standard Life Insurance Company. Training sessions were held to give me insights about How to create markets and write comments on other members markets and to encourage and appreciate them for their nice efforts and creative markets. I also learnt how to work online for such a nice company HDFC Standard Life Insurance Co. Ltd which enhanced my knowledge, writing skills and communication.

Profile
Housing Development Finance Corporation Ltd. (HDFC), Indias premier housing finance institution has assisted more than 3.3 million families own a home, since in inception in 1977 across 2400 cities and town through its network over 250 offices. It has international offices in Dubai, London and Singapore service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. As of December 2008, the total asset size has crossed more than Rs. 95,000 cores including mortgage loan assets of more than Rs. 83,800 cores. The corporation has a deposit base of Rs. 17,551 cores, earning the trust of more than 9, 00,000 depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the servi9ce to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing g finance companies. HDFC Bank was incorporated in August 1994, and currently has a nationwide network of 1412 Branches and 325s ATMs in 528 Indian towns and cities. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI)to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking industry in 1994. The bank was incorporated in August 1994 in the name of HDFCs Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced operation as a Scheduled Commercial Bank in January 1995.

AWARDS AND ACCOLADES:

Awarded the Economic Times Corporate Citizen award in 2004. Presented Dream Home award for the biggest housing finance provider in 2004. HDFC Ranked as Indias Third Best Managed Company by Finance Asia 2005. HDEC won the Best award for Investment Management in India at the Euro money 2006 Real Estate Awards. Best Home Loan Provider title at the ZEE Pinnacle Awards 2006. Best Strategy, at the 4Ps Business, Marketing &Advertising Power Awards 2006. Dun & Bradstreet American Express Corporate Award 2006. Sar Utha Ke Jiyo Among Indias 60 Glorious Advertising Moments January, 2008. Received 2008 CIO Bold 100 and CIO Security Awards. Received PCQuest Best IT Implementation Award May, 2008. Unit Linked Savings Plan Tops Mint Best TV Ads Survey March,

2008.

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Other Companies:
Other Companies:

HDFC Property Ventures Ltd

HDFC Developers Ltd.

GRUH Finance Ltd. HDFC Ventures Trustee Company Ltd. HDFC Trustee Company Ltd HDFC Investments Ltd HDFC Holdings Ltd

Credit Information Bureau (India) Ltd HDFC Securities

Mission and Business Strategy:

HDFC Bank is a dynamic bank; with a youthful and enthusiastic team determine to accomplish the vision of becoming a world-class Indian bank. Our business philosophy is based on four core values Customer Focus, Operational Excellence, Product Leadership and People. We believe that the ultimate identity and success of our bank will reside in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating, and retaining the best people in the industry. Our mission is to be a World-Class Indian Bank, benchmarking ourselves against international standards and be practices in terms of product offerings, technology, service level, risk management and audit and compliance. The
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Career:

Standard Life UK;

:
HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stake holders and achieving organizational efficiency. This corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principle of goods corporate governance.

E Corporate Governance
Standard Life Insurance Company is one of the most trusted Insurance Companies worldwide based at Edinburgh, Scotland (UK). Founded
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objective is to build sound customer franchises across distinct business so as to be a preferred provide of banking service for target retail and wholesale customer segment, and to achieve a healthy growth in probability, consistent with the Banks risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Our business strategy emphasizes the following: Focus on high earnings growth with low volatility. Maintain our current standards for asset quality through disciplined credit risk management.

Continue to develop products and service that reduces our cost of founds. Develop innovative product and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.

HDFC Standard Life Insurance Co. Ltd:

Standard Life Investment manages assets for the group as well as third parties, and has a record of strong investment performance. Standard Life Healthcare is one of the largest private medical insurance providers in the UK. Standard Life Bank offers a range of mortgages and savings products, and had mortgage book of 10.6 billion as at 31st December 2005. INR 819.69 billion or 81, 969 cores.

Standard Life Group Companies:

HDFC Standard Life Insurance Company Limited is a joint venture between HDFC Ltd, a Leading Finance Company in India & Standard
Life Assurance, the largest mutual Insurance Company in Europe.
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in 1825, Currently over 7 million Customers worldwide, operation in all the important markets of the world like Austria, Canada, China, Germany, Spain, Hong Kong, Ireland and India through its network. Standard Life listed on 10th July 2006, the biggest float on the London Stock Exchange in the last five years. Standard Life Insurance Co. is the largest mutual insurance company in Europe. Providing range of saving, pension, and protection and investment products. As at December 2006, Standard Life Financial Strength has total Assets under management UK 125 billion (more than Rs. 10, 46, 979 or INR 10, 469, 791,000,000 cores.)