CHAPTER - 1

INTRODUCTION

1.1 About the Industry

Banking is nearly as old as civilization. The history of banking could be said to have started with

the appearance of money. The first record of minted metal coins was in Mesopotamia in about

2500B.C. the first European banknotes, which was handwritten appeared in1661, in Sweden.

Cheque and printed paper money appeared in the 1700’s and 1800’s, with many banks created to

deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and industry,

and with the level of political confidence and stability. The ancient Romans developed an

advanced banking system to serve their vast trade network, which extended throughout Europe,

Asia and Africa. Modern banking began in Venice. The word bank comes from the Italian word

“ban co”, meaning bench, because moneylenders worked on benches in market places. The bank

of Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their

safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with

the metal itself staying under lock and key. The goldsmith realized that they could lend out some

of the gold and silver that they had and charge interest, as not all of the merchants would ask for

the gold and silver back at the same time. Eventually, instead of charging the merchants, the

goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government

to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England

notes of their own receipts. New technology transformed the banking industry in the 1900’s

round the world, banks merged into larger and fewer groups and expanded into other country.

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1.1.1 Indian Banking System

Figure 1.1 Indian Banking System

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Non-Schedule Banks

State co-op Banks

Commercial Banks

Central co-op Banks and Primary Cr. Societies

Commercial Banks

Indian Foreign

Public Sector Banks Private Sector

BanksHDFC, ICICI etc.

State Bank of India and its

Subsidiaries

Other Nationalized Banks

Regional Rural Banks

Reserve Bank of India

Schedule Banks

1.2 About organization

1.2.1 HDFC Bank

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined to

accomplish the vision of becoming a world-class Indian bank. HDFC’s business philosophy is

based on four core values - Customer Focus, Operational Excellence, Product Leadership and

People. They believe that the ultimate identity and success of bank will reside in the exceptional

quality of people and their extraordinary efforts. For this reason, they are committed to hiring,

developing, motivating and retaining the best people in the industry. HDFC is better:

1. Investment returns: investment returns and business growth provided by HDFC is validated

by Bajaj Capital report. HDFC pacify the need of invertors up to healthy level and make the

strong relationship with them.

2. Financial Background and Experience: HDFC existing in the market since 1977. It has a very

handsome experience in the field of finance because it completely involved in finance Sector

only where as the others are running in many other field also like Reliance (Petroleum,

Textile, Telecom etc.)

3. Ethics and Values: HDFC is an ethical and cultural organization which prevents the false

selling and prohibit the false commitment to the customer.

4. Sales Force: Properly trend licensed and Educated People are the strength of the company.

So that they could give the best customer service.

5. Huge branch network HDFC is having 450 branches in all over the country.

6. Online accessibility: It makes the process faster and make the customer delighted.

1.2.1.1 Mission and Business Strategy:

Mission of HDFC is to be "a World Class Indian Bank", benchmarking themselves against

international standards and best practices in terms of product offerings, technology, service

levels, risk management and audit & compliance. The objective is to build sound customer

franchises across distinct businesses so as to be a preferred provider of banking services for

target retail and wholesale customer segments, and to achieve a healthy growth in profitability,

consistent with the Bank's risk appetite. They are committed to do this while ensuring the highest

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levels of ethical standards, professional integrity, corporate governance and regulatory

compliance.

Business strategy of HDFC emphasizes the following:

i. Increase market share in India’s expanding banking and financial services industry by

following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

ii. Leverage technology platform and open scalable systems to deliver more products to more

customers and to control operating costs.

iii. Maintain the current high standards for asset quality through disciplined credit risk

management.

iv. Develop innovative products and services that attract targeted customers and address

inefficiencies in the Indian financial sector.

v. Continue to develop products and services that reduce cost of funds

vi. Focus on high earnings growth with low volatility.

1.2.1.2 Products of HDFC Bank

Account & Deposits Service:

 Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a

customer's need and occupational status, we have a range of solutions that are second to none.

Whether you're employed in a company and need a simple Savings account or run your own

business and require a robust banking partner, HDFC Bank not only has the perfect solution for

you, but also can recommend products that can augment your planning for the future.

It includes these services: -

i. Saving accounts.

ii. Current accounts.

iii. Fix deposits.

iv. Demate account.

v. Safe deposits lockers.

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i. Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future, accumulating

funds over a period of time. Whatever person’s occupation, bank have confident that person will

find the perfect banking solution. There some saving accounts like: - 

Regular Saving Account

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and

withdraw cash. Check up on your balances from the comfort of your home or office through Net

Banking, Phone Banking and Mobile Banking.

Saving Plus Account

Introducing the best banking option for you with HDFC Bank Savings plus Account. Now you

can get access to some of the finest banking facilities with HDFC Bank's Savings plus Account.

All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded with maximum

benefits to make your banking experience a pleasure. By maintaining an average quarterly

balance of just Rs. 25,000/- you get a host of premium services from HDFC Bank absolutely

free.

ii. Salary Accounts

In this account customer can get salary from where he/she doing such job and organization or

company at where the customer of the bank in doing job deposit their salary in to the salary

account a person can get salary.

There are various kinds of saving accounts in the HDFC Bank like: -

Pay roll account.

Classic salary account.

Regular salary account.

Premium salary account.

Defence salary account.

No frills salary account.

Reimbursement salary account.

iii. Kid’s Advantage Account

Start saving for your child today and secure his/her future a sentence tells by the HDFC bank.

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Open a Savings Account and transfer money every month into customer’s Kids Advantage

Account and watch the savings grow as customer’s child grows. The accumulated savings in the

Kids Advantage Account can over the years help in meeting customer child's needs.

iv. Current Accounts

HDFC Bank Current Account gives the power of inter-city banking with a single account and

access to more than one cities. From special cheques that get treated at par with local ones in any

city where branch, faster collection of outstation cheques (payable at branch locations), free

account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up

to 100 lakhs per month, bank’s  priority services have become the benchmark for banking

efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking.

Person can have the power of multi-location access to his account from any of our 761 branches

in 327 cities. Not only that, he can do most of his banking transactions from the comfort of his

office or home without stepping out.

1.2.1.3 Government Sector

HDFC Bank acts as an active medium between the government and the customers by means of

various services. These services include:

i. Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes

and Sales Tax collections at their local HDFC Bank.

ii. E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket

online and get it home delivered.

iii. Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses,

thus facilitating imports for the Government.

iv. Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli

Municipal Corporation, is undertaken by the Bank.

v. Collection of stamp duty is done via franking mode in the state's of Maharashtra & Gujarat.

vi. The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort,

Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri, Pune(FC Road),

Kolhapur, Nagpur, Pimpri.

vii. The Stamp Duty Franking Facility is available at following branches in Gujarat

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

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done by HDFC Bank along with the disbursement of pension to the members of EPFO

(Employees Provident Fund Organisation).

ix. Electronic Collection of fees on behalf of DGFT is done by the bank too.

1.2.1.4 Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail

Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for

providing working capital finance, trade services, corporate finance, and merchant banking. It is

also providing sophisticated product structures in areas of foreign exchange and derivatives,

money markets and debt trading and equity research.

i. Wholesale banking services:

Blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and

agri-based businesses. For these customers, the Bank provides a wide range of commercial and

transactional banking services, including working capital finance, trade services, transactional

services, cash management, etc. The bank is also a leading provider of for its corporate

customers, mutual funds, stock exchange members and banks.

ii. Retail banking services:

HDFC Bank was the first bank in India to launch an International Debit Card in association with

VISA (VISA Electron) and issues the Master card Maestro debit card as well. The Bank launched

its credit card business in late 2001. By March 2009, the bank had a total card base (debit and

credit cards) of over 13 million. The Bank is also one of the leading players in the “merchant

acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards

acceptance at merchant establishments. The Bank is positioned in various net based B2C

opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill

Payments, etc. With Finest of Technology and Best of Man power in Banking Industry HDFC

BANK's retail services have become by and large the best in India and since the contribution to

CASA i,e total number of current and savings account of more than 50% ,HDFC BANK has full

potential to become Indias No.1 Private Sector Bank. HDFC Bank website including

hdfcbank.com and hdfcsec.com are not available 24X7. This has become a habit of HDFC Bank.

Customers of the HDFC Bank are requested to check the website availability 24 X 7 and if

available can do the transaction. If the website is not available they are asked to visit their home

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branch.

iii. Treasury:

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,

Local Currency Money Market & Debt Securities, and Equities. These services are provided

through the bank's Treasury team. To comply with statutory reserve requirements, the bank is

required to hold 25% of its deposits in government securities. The Treasury business is

responsible for managing the returns and market risk on this investment portfolio.

1.2.1.5 Distribution network

HDFC Bank is headquartered in Mumbai and has a nationwide network of 2201 branches spread

in 1174 towns and cities across India. The Bank also has 7,110 networked ATMs.

1.2.2 ICICI BANK

ICICI Bank was established in 1996 by the Industrial Credit and Investment Corporation of

India, an Indian financial institution, as a wholly owned subsidiary. The parent company was

formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-

sector insurance companies to provide project financing to Indian industry. The bank was

initially known as the Industrial Credit and Investment Corporation of India Bank, before it

changed its name to the abbreviated ICICI Bank. The parent company was later merged into

ICICI Bank. ICICI Bank launched internet banking operations in 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of

shares in India in 1998, followed by an equity offering in the form of American Depositary

Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock

deal in 2001, and sold additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution offering

only project finance to a diversified financial services group, offering a wide variety of products

and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.

In 1999, ICICI become the first Indian company and the first bank or financial institution from

non-Japan Asia to be listed on the NYSE.

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In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with

its five million American depository shares issue generating a demand book 13 times the offer

size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI

and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services

Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by

shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at

Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve

Bank of India in April 2002.

In 2008, following the 2008 financial crisis, customers rushed to ATM's and branches in some

locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of India

issued a clarification on the financial strength of ICICI Bank to dispel the rumors.

1.2.2.1 Financial Sector Overview

i. The past year saw the process of financial sector reforms being carried forward with

particular focus on banks and financial institutions. Considerable attention was given to

asset classification and provisioning norms in banks.

ii. RBI announced guidelines on universal banking to facilitate the transformation of financial

institutions into banks.

iii. It also granted licenses for two new private sector banks and reduced the cash reserve ratio

in October 2001 and April 2002, bringing it down to 5.0%.

iv. The Union Budget for fiscal 2003 provided for higher tax deduction on provisions for bad

debts. It also proposed the enactment of new legislation for banking sector reforms and

foreclosure laws. The Union Budget also permitted incorporation of subsidiaries by foreign

banks.

v. The Securitization and Reconstruction of Financial Assets and Enforcement of Security

Interest Ordinance, 2002 has significantly strengthened the ability of lenders to resolve non-

performing assets by granting them greater rights as to enforcement of security and recovery

of dues. The setting up of a pilot asset reconstruction company is also expected to facilitate

faster resolution of non-performing assets in the financial system.

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1.2.2.2 Merger of ICICI with ICICI Bank

i. ICICI Bank and ICICI, along with other ICICI group companies, were operating as a

“virtual universal bank”, offering a wide range of financial products and services.

ii. The merger of ICICI and two of its subsidiaries with ICICI Bank has combined two

organizations with complementary strengths and products and similar processes and

operating architecture.

iii. The merger has combined the large capital base of ICICI with the strong deposit raising

capability of ICICI Bank, giving ICICI Bank improved ability to increase its market share in

banking fees and commissions, while lowering the overall cost of funding through access to

lower-cost retail deposits.

iv. ICICI Bank would now be able to fully leverage the strong corporate relationships that

ICICI has built, seamlessly providing the whole range of financial products and services to

corporate clients.

v. The merger has also resulted in the integration of the retail finance operations of ICICI, and

its two merging subsidiaries, and ICICI Bank into one entity, creating an optimal structure

for the retail business and allowing the full range of asset and liability products to be offered

to all retail customers.

1.2.2.3 Business Review

i. Retail Banking:

The retail business is the key driver of ICICI Bank’s growth strategy, with the objective of

diversifying the asset portfolio and building a low-cost stable resource base. With a complete

product suite across both asset and liability products as well as a wide range of banking

services, ICICI Bank is today a retail financial supermarket with the ability to cross-sell the

entire range of credit and investment products and other banking services to our customers.

The key dimensions of our retail strategy are products, channels and processes, underpinned

by a strong customer focus.

Changing demographics and the trend towards upward migration in income levels coupled

with existing low retail credit penetration levels have created a major growth opportunity in

retail finance.

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ICICI Bank’s retail assets business is capitalizing on this opportunity with a competitive

positioning and strategy comprising innovative products, wide distribution, strong credit

controls and high customer service standards and rapidly growing volumes in each segment

to achieve economies of scale.

ICICI Bank’s retail portfolio (including the portfolio of ICICI Home Finance Company

Limited, its wholly-owned subsidiary) at March 31, 2002 was over Rs. 76.00 billion, as

compared to the combined retail portfolio of ICICI and ICICI Bank of about Rs. 29.00 billion

at March 31, 2001. Our retail asset products include mortgages, automobile and two-wheeler

loans, commercial vehicles and construction equipment financing, consumer durable loans,

personal loans and credit cards.

ii. Corporate Banking:

ICICI Bank’s corporate banking strategy is based on providing customized financial

solutions to clients, tailored to meet their specific requirements.

The corporate banking strategy focuses on careful management of credit risk and adequate

return on risk capital through risk-based pricing and proactive portfolio management, rapid

growth in fee-based services and extensive use of technology to deliver high levels of

customer satisfaction in a cost effective manner.

Our focus in fiscal 2002 was on expanding the range and depth of our corporate

relationships, acquiring new clients and cross-selling all our corporate banking products and

services to the existing client base.

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

transactions and channel financing.

We focused strongly on transaction banking services such as cash management and non-

fund-based facilities such as letters of credit and bank guarantees to increase our market

share in banking fees and commissions.

We have already achieved significant success in cash management services, with total

volumes of Rs. 1.72 trillion for fiscal 2002. We also targeted high value current accounts to

reduce our cost of funding. We implemented a customer-level profitability-based pricing

mode.

1.2.2.4 Creation of market infrastructure in India

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ICICI Bank has contributed to set up different institutions which include the following:

i. National Stock Exchange

The National Stock Exchange was promoted by India’s leading financial institutions (including

ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a

nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to

investors all over the country through an appropriate communication network.

ii. Credit Rating Information Services of India Limited

In 1987, ICICI Ltd. along with UTI set up CRISIL as India's first professional credit rating

agency. CRISIL offers a comprehensive range of integrated products and service offerings which

include credit ratings, capital market information, industry analysis and detailed reports.

iii. Credit Information Bureau of India Limited

ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL),

India’s first national credit bureau in 2000. CIBIL provides a repository of information (which

contains the credit history of commercial and consumer borrowers) to its members in the form of

credit information reports. The members of CIBIL include banks, financial institutions, state

financial corporations, non-banking financial companies, housing finance companies and credit

card companies.

iv. ICICI Lombard:

ICICI Lombard was among the first companies to make their insurance products available

online in India. ICICI Lombard has web-based systems to meet all pre and post-policy

transactional needs of its customers. One can compare plans, get quotes, buy, renew and

keep a track of their insurance policies online. ICICI Lombard has developed a web-based

system to meet all the pre and post-policy transaction. One can get quotes, buy, renew and

track their policies online through the website.

ICICI Lombard offers its customers retail general insurance products online. These products

are Car Insurance, Two Wheeler, Health Insurance, Travel Insurance, Student Travel,

Personal Accident and Home Insurance.

ICICI Lombard was the first general insurance company in India to start telesales operations

due to its inherent profitability. However in recent times, public outburst against pushy and

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intrusive telecalling in general has led to a reduction in cold calling and the introduction of

'do-not-call' (opt-out) lists similar to the US 'Do Not Call Registry'. ICICI Lombard too has

the Do Not Call option and respects the privacy of their customers.

v. ICICI Prudential

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one of

the foremost financial services companies of India and Prudential plc, one of the leading

international financial services group headquartered in the United Kingdom.

Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been

one of the earliest private players. Since the time, ICICI Pru Life has been the leader in terms

of market share as indicated by the IRDA (Insurance Regulatory and Development

Authority, the regulator for Indian Insurance Industry) at its website.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK

Healthcare to settle insurance claims of its users.

ICICI Prudential's life insurance products may be loosely categorized under four forms- Life

Plans (further categorized into Term Plans and Wealth Plans), Child Plans, Retirement Plans

and Health Plans.

Under Life Insurance Plan category it offers term plans like i-Protect online term plan, ICICI

Pru Pure-Protect and ICICI Pru Life Guard, and ULIP wealth plans like ICICI Pru Life Stage

Wealth II, ICICI Pru Life Link Wealth SP, ICICI Pru Pinnacle Super etc.

1.2.2.5 Subsidiaries, Mergers & Acquisition of ICICI

Domestic subsidiaries:

i. ICICI Lombard

ii. ICICI Prudential Life Insurance Company Limited

iii. ICICI Securities Limited

iv. ICICI Prudential Asset Management Company Limited

v. ICICI Venture

vi. ICICI Home Finance

vii. ICICI direct.com

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International subsidiaries:

i. ICICI Bank UK PLC

ii. ICICI Bank Canada

iii. ICICI Bank Eurasia LLC

Acquisitions:

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

ii. 2007: Sangli Bank

iii. 2010: Bank of Rajasthan

CHAPTER – 2

TOPIC INTRODUCTION & LITERATURE REVIEW

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2.1 About the Topic

Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the industry.

As we know it is very important for an industrial concerns to have efficient and effective

personnel with right quality and at right time and at right place available whenever they are

needed. Every organization needs employee time by time because of promotion or retirement of

an employee. For this purpose an organization need to search for the right candidate. And so it

needs to encourage this type of right candidates whenever they require.

To understand recruitment in simple terms it is understood as process of searching for obtaining

applications of job from among from whom the right people can be selected. To define

recruitment we can define it formally as it is a process of finding and attracting capable

applicants for employment. The process begins when new recruit are sought and ends when their

application are submitted.

The result is a pool of applicants from which new employees are selected. Theoretically,

recruitment process is said to end with receipt of application in practice the activity extends to

the screening applicants as to eliminate those who are not qualified for job.

2.1.1 Purpose and Importance of recruitment

The general purpose of recruitment is to provide a pool of potentially qualified job candidates.

Specifically, the purposes are to:

1. Determine the present and future requirement of the organization in conjunction with its

personnel planning and job analysis activities;

2. Increase the job pool of job candidates at minimum cost;

3. Help increase the success rate of the selection process by reducing the number visibly under

qualified or job application;

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4. Help reduce the probability that job applicants, once recruited selected, will leave the

organization only after a short period of time;

5. Meet the organizations legal and social obligation regarding the composition of its workforce;

6. Being identifying and preparing potential job applicants who will be appropriate candidates;

7. Increase organization individual effectiveness in the short term and long term;

8. Evaluate the effectiveness of various recruiting technique and sources for all types of job

applicants.

2.1.2 Factors Affecting Recruitment

There are a number of factors that affect recruitment. These are broadly classified into two

categories: I. Internal factors II. External factors

I. Internal Factors

The internal factors also called as “Endogenous Factors” are the factors within the organization

that affect recruiting personnel in the organization. Some of these are:

i. Size of the organization

The size of the organization affects the recruitment process. Larger organization finds

recruitment less problematic than organization with smaller in size.

ii. Recruiting policy

The recruitment policy of the organization i.e. recruiting from internal sources and external

sources also affect the recruitment process. Generally, recruitment through internal sources is

preferred, because own employees know the organization and they can well fit in to the

organization culture.

iii. Image of the organization

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Image of the organization is another factor having its influence on the recruitment process of the

organization. Good image of the organization earned by the number of overt and covert action by

management helps attract potential and complete candidates.

Managerial actions like good public relations, rendering public service like building roads, public

parks, hospitals and schools help earn image or goodwill for organization. That is why chip

companies attract the larger numbers of application.

iv. Image of the job

Better remuneration and working conditions are considered the characteristics of good image of

a job. Besides, promotion and carrier development policies of organization also attract potential

candidates.

II. External Factors

Like internal factors, there are some factors external to organization, which have their influence

on recruitment process. Some of these are given below:

i. Demographic factors

As demographics factors are intimately related to human beings, i.e. employees, these have

profound influence on recruitment process. Demographic factors include age, sex, Literacy,

economics status etc. Labor market Labor market condition i.e. supply and demand of labor is of

particular importance in affecting recruitment process. E.g. if the demand for specific skill is

high relative to its supply is more than for particular skill, recruitment will be relatively easier.

ii. Unemployment situation

The rate of unemployment is yet another external factor its influence on the recruitment process.

When the employment rate in an area is high, the recruitment process tends to simpler. The

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reason is not difficult to seek. The number of application is expectedly very high which makes

easier to attract the best-qualified applications. The reserve is also true. With low rate of

unemployment, recruiting process tend to become difficult.

iii. Labor laws

There are several labor laws and regulations passed by the central and state governments that

govern different type of employment. These cover working condition, compensation, retirement

benefits, safety and health of employee in industrial undertakings.

iv. Child Labour Act, 1986

For example prohibits employment of children in certain employments. Similarly several other

acts such as –

The Employment Exchange Act,1958

The Apprentice Act, 1961

The Factory Act,1948

The Mines Act, 1952

These act deal with recruitment. Legal consideration another external factor is legal

consideration with regard to employment reservation of jobs for schedule tribes, and other

backward class (OBC) is the popular examples of such legal consideration. The supreme court of

India has given its verdict in favor of 50 per cent of jobs and seats. This is so in case admission

in the educational institutions also

2.1.3 Sources of Recruitment

I. Internal Sources of Recruitment

i. Present employees:

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Promotions and transfer from among the present employees can be good sources of recruitment.

Promotion implies upgrading of an employee to a higher position carrying higher status, pay and

responsibilities. Promotion from among the present employees is advantageous because the

employees promoted are well acquainted with the organization culture, they get motivated and it

is cheaper also. Promotion from among the person employees also reduces the requirement of

job training.

However, the disadvantage lies in limiting the choice of the few people and denying hiring of

outsiders who may be better qualified and skilled. Furthermore, promotion from among present

employees also results in inbreeding, which creates frustration among those not promoted.

ii. Transfer:

Transfer refers to shifting an employee from one job to another without any change in the

position/post, status and responsibilities. The need for transfer is felt to provide employees a

broader and carried base, which is considered necessary for promotion. Job rotation involves

transfer of employees from one job to another job on the lateral basis.

iii. Former employees:

Former employees are another source of applicant for vacancies to be filled up in the

organization. Retired or retrenched employees may be interested to e come back the company to

work on the part time basis. Similarly, some former employees who had left the organization for

any reason, any come back to work. This source has the advantages of hiring people whose

performance is already known to the organization.

iv. Employee referrals:

This is yet another internal source of recruitment. Some of these are:

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

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

This source serves as the most effective methods of recruiting people in the organizations

because refer to those potential candidates who meet the company requirement known to

them from their own experience.

The referred individuals are expected to be similar in type in the of race and sex, for

example, to those who are already working in the organization.

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v. Previous applicant:

This is considered as internal source in the sense that applications from the potential candidates

are already lying with organization. Sometimes the organization contacts though mail or

messengers these applicants to fill up the vacancies particularly for unskilled or semiskilled jobs.

2.1.3.1 Evaluation of Internal Sources

Let us, evaluate the internal source of recruitment. Obviously, it can be done in terms of its

advantage and disadvantage the same are spelled out as follows:

Advantages

The advantages of the internal source of recruitment include the following:

i. Familiarity with own employees:

The organization has more knowledge and familiarity with the strengths and weaknesses of its

own employees than of strange on unknown outsiders.

ii. Better use of the talent:

The policy of internal recruitment also provides an opportunity to the organization to make a

better use of talents internally available and to develop them further and further. Economical

recruitment: In case of internal recruitment, the organization does not need to spend much

money, time and effort to locate and attract the potential candidates. Thus, internal recruitment

proves to be economical, or say, inexpensive.

iii. Improves morale:

This method makes employees sure that they would be preferred over the outsiders as and when

they filled up in the organization vacancies.

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iv. A Motivator:

The promotion through internal recruitment serves as a source of motivation for the employees to

improve their carrier and income. The employees feel that organization feel that organization is a

place where they can build up their life- long career. Besides, internal recruitment also serves as

a means of attracting and retaining employees in the organization.

Disadvantages

The main drawback associated with the internal recruitment is as follows:

i. Limited choice:

Internal recruitment limits its choice to the talents available within the organization. Thus, it

denies the tapping of talents available in the vast labor market outside the organization.

Moreover, internal recruitment serves as a means for “inbreeding”, which is never healthy for the

future organizations.

ii. Discourage competition:

In this system, the internal candidates are protected from competition by not giving opportunity

to otherwise competent candidates from outside the organization. This in turn, develops a

tendency among the employees to take the promotion without showing extra performance.

iii. Stagnation of skills:

With the feeling that internal candidates will surely get promoted, their skill in the long run may

become stagnant or obsolete. If so, productivity and sufficiency of the organization, in turn,

decreases.

iv. Creates conflicts:

Conflicts and controversies surface among the internal candidates, whether or not they deserve

promotion.

II. External Sources of Recruitment

External sources of recruitment lie outside the organization. These outnumber internal sources.

The main ones are listed as follows:

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i. Employment exchanges:

The national commission labor (1969) observed in its report that in the pre- independence era,

the main source of labor war rural areas surrounding the industries. Immediately after

independence, national employment services were established to bring employer and job seeker

together. In response to it, the compulsory notification of vacancies act of 1959 (Commonly

called employment exchange act) was instituted which become operative in 1960.

The main functions of these employment exchanges with the branches in most cities are

registration of job seeker and tier placement in the notified vacancies. It is obligatory for

employer to inform about the outcome of selection within 15 days to the employment exchange.

Employment exchange is particularly useful in recruiting blue-collar, white- collar and technical

workers.

ii. Employment agencies:

In addition to the government agencies, there are number of private agencies that register

candidates for employment and furnish a list of suitable candidates from the data bank as and

when sought by the prospective employer. Generally, these agencies select personnel for

supervisory and the higher levels.

The main function of these agencies is to invite application and short-list the suitable candidates

for the organization. Of course, the representative of the organization takes the final decision on

selection. The employer organizations derive several advantages through this source. The time

saved in this method can be better utilized elsewhere by the organization. As the organizational

identity remains unknown to the job speakers, it, thus, avoid receiving letters and attempts to

influence.

III. Other Sources of Recruitment

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

Campus Recruitment.

Company’s own website.

Placement consultants.

Advertisement in the news papers.

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2.1.4 Methods of Recruitment

Recruitment methods refer to the means by which an organization reaches to the potential job

seeker. It is important to mention that the recruitment methods are different from the resources of

recruitment. The major line of distinction between the two is that while the former is the means

of establishing links with the prospective candidates, the latter is location where the prospective

employees are available.

Dunn and Stephen have broadly classified methods of recruitment into Third Party Indirect

Method; Direct Method; three categories. Brief descriptions of these are follows:

i. Direct Method:

In this method, the representatives of the organizations are sent to the potential candidates in the

educational and training institutes. They establish contacts with the candidates seeking jobs.

Person pursuing management, engineering, medical, etc. programmers are mostly picked up the

manner.

ii. Indirect Method:

Indirect methods include advertisements in the newspaper, on the radio and television, in

professional journals, technical magazines, etc. This method is useful when Organization dose

not find suitable candidates to be promoted to fill up the higher posts, When the organization

want to reach out a vast territory, and When organization wants to fill up scientific, professional

and technical posts.

iii. Third Party Method:

These include the use of private employment agencies, management consultants, professional

bodies pr associations, employee referral or recommendation, voluntary organization, trade

banks, labor contractors, etc., to establish contact with the job seekers.

2.2 Recruitment Process

7 Steps to Effective Recruitment Having the right person, in the right place, at the right time, is

crucial to organizational performance. Therefore recruitment is a critical activity and should

incorporate the following steps:

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Step 1 - What’s the job?

Gather information about the nature of the job. Think about:

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

The job’s purpose

The outputs required by the job holder

How it fits into the organization’s structure

The skills and personal attributes needed to perform the role effectively.

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

Step 2 - Prepare a job and person profile

A person specification or job profile states the necessary and desirable criteria for selection.

Increasingly such specifications are based on a set of competencies identified as necessary for

the performance of the job. Include:

skills, aptitude, knowledge and experience

qualifications (which should be only those necessary to do the job - unless candidates are

Recruited on the basis of future potential, for example graduates) personal qualities relevant

to the job, such as ability to work as part of a team.

The document formed from the person specification can then be used to inform the criteria you

use to shortlist applicants.

Step 3 – Finding candidates

Internal methods:

Staff referrals

Succession planning

Job sharing

It is important not to forget the internal talent pool when recruiting. Providing opportunities for

development and career progression is an important factor for employee retention and

motivation.

External methods: There are many options available for generating interest from individuals

outside the organization.

Online recruitment

Press advertising

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Networking

Open days

Advertising remains the most common means of

attracting and recruiting. Advertisements should be

clear and indicate the:

requirements of the job

necessary and the desirable criteria for job

applicants (to limit the number of inappropriate

applications received)

nature of the organization’s activities

job location

reward package

job tenure (for example, contract length)

details of how to apply.

Advertisements should be genuine and relate to a job that actually exists. They should appeal to

all sections of the community using positive visual images and wording.

Step 4 - Managing the application process

There are two main formats in which applications are likely to be received: the curriculum vitae

(CV) or application form. It is possible that these could be submitted either on paper or

electronically and the use of e-applications (Internet, intranet and email) is now part of

mainstream recruitment practices

Application forms

Application forms allow for information to be presented in a consistent format, and therefore

make it easier to collect information from job applicants in a systematic way and assess

objectively the candidate’s suitability for the job. Be aware that application form design is also

important under the Disability Discrimination Act 1995, it may be necessary to offer application

forms in different formats.

CVs

The advantage of CVs is that they give candidates the opportunity to sell themselves in their

own way and don’t have the restrictions of fitting information into boxes as often happens on an

application form. However, CVs make it possible for candidates to include lots of additional,

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irrelevant material which may make them harder to assess consistently.

Step 5 - Selecting candidates

Selecting candidates involves two main processes: short listing and assessing applicants to

decide who should be made a job offer.

Short listing

The process of short listing involves slimming down the total number of applications received to

a shortlist of candidates you wish to take forward to the more detailed assessment phase of the

selection process.

When deciding who to shortlist, it is helpful to draw up a list of criteria using the person

specification. Each application can then be rated according to these standards, or a simple

scoring system can be used.

Assessment

A range of different methods can be used to assess candidates. These vary in their reliability as a

predictor of performance in the job and in their ease and expense to administer. Typical methods

include:

General interview

Competency based interview

In tray exercise

Role play

Presentation

Step 6 - Making the appointment

Before making an offer of employment, employers have responsibility for checking that

applicants have the right to work in the UK and to see and take copies of relevant documentation

- a list of acceptable documents demonstrating the right to work in the UK is available from the

Home Office

Contract

Offers of employment should always be made in writing. But it is important to be aware that an

oral offer of employment made in an interview is as legally binding as a letter to the candidate.

References

A recruitment policy should state clearly how references will be used, when in the recruitment

process they will be taken up and what kind of references will be necessary (for example, from

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former employers). These rules should be applied consistently.

Medical examinations

It is reasonable to require completion of a health questionnaire where good health is relevant to

the job. Any particular physical or medical requirement should be made clear in the job

advertisement or other recruitment literature.

Step 7 – Induction

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

employee. An induction plan should include:

Orientation (physical) - describing where the facilities are

Orientation (organizational) - showing how the employee fits into the team and how their

role fits with the organization’s strategy and goals

Health and safety information - this is a legal requirement

Explanation of terms and conditions

Details of the organization’s history, its products and services, its culture and values. A clear

outline of the job/role requirements.

2.3 RECRUITMENT PROCESS (HDFC)

Introduction :

Recruiting and selecting the right people is paramount to the success of the HDFC BANK LTD.

and its ability to retain a workforce of the highest quality. This recruitment and selection policy

sets out the procedure to ensure that the best people are recruited on merit and that are the

recruitment process is free from bias and discrimination.

Principles :

Following are the guiding principles for recruitment and on-boarding process.

• Attracting and recruiting the right people is one of the most important activities of the

organization and is the responsibility to be owned by each and every employee of the

organization.

• Merit will be the single most important factor in selection process.

• They will ensure a diversity, both gender and ethnicity by targeted candidate sourcing with the

help of recruitment vendors and the referral program.

• While skills and profile matching play an important role, they will hire people who are team

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players and have the right attitude most relevant to the culture of the organization. Attitude is as

important as aptitude.

• They believe in becoming a company of giants and emphasis is in hiring people who can grow

bigger and better than they presently are.

• They believe in providing their employee with fulfilling career paths. Towards this, they will

post vacancies internally as a preferred option while evaluating external candidates.

• They believe that each candidate interviewed irrespective of whether she/he is selected should

become a friend of the organization. They treat all the candidates with the utmost respect. They

will be open and fair in communication with them; this way they also enhance the brand image

of the organization.

• They will continuously assess, identify and cultivate strategic talent pools including those at the

universities, management schools, and community forums to address their long term needs.

Hiring Approval:

• All recruitment activities shall be undertaken based on the hiring plan as approved by the

Business Head, HR Head & the CEO. For each approved position, a hiring requisition will be

required prior to initiation of any recruitment activity. If the hiring was not included in the

planned budget, it will also require approval from the CEO based on a recommendation from the

Head HR and the CFO.

• Recruitment expense will be allocated to the concerned business unit, and expenditure should

be budgeted and pre-approved by the business unit head and the HR Head.

Candidate Sourcing:

The hiring manager along with the Human Resource Department would decide the channel /

source to use based on the nature of the recruitment. The following sources of recruitment may

be considered:

i. Internal Sources:

Whenever any vacancy arises, the possibility of fulfilling the requirement internally via

reassignment and relocation, re-allocation of the responsibilities or internal promotion will be

explored by the hiring function along with the HR Department.

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Internal job postings to explore internal candidates.

ii. Employee Referrals – HDFC will encourage employees to refer suitable candidates for open

positions.

iii. Other External sources include:

Recruitment agencies

College / campus requirement 

Requirement advertisements

Application Processing:

HDFC will process all applications promptly and inform the applicant or source regarding the

status of the application. HDFC will respond to all solicited applications within 5 working days

of receiving the application.

Interview Process:

• All candidates are required to undergo a face to face interview with the interview panel before

selection.

• Interviews may be conducted at a place at mutually convenient locations and time in an effort

to maintain confidentiality of the hiring effort.

• One on one meeting shall be preferred as the interview format, however depending on the

constraints panel interviews / telephone / video conference screening could be used.

• For recruitment at junior levels, job fairs, universities etc, where large volume of candidates,

HDFC will use recruitment tests for purpose of short listing. The candidate may be tested on the

basic aptitude, analytical skills or other skills required for the job of the candidates.

• The interview process will focus on the evaluating the candidates suitability in terms of the job

description and fit within the organization.

• Each interviewer will complete the interview feedback form and submit it to HR. HR will

compile the results from a various interviews and provide these to the line manager for the final

decision.

Recruitment Expenses:

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• All recruitment expenses including recruitment fees, advertisement expenses and interview

related expenses will be allocated to the concerned business unit.

• The candidate will be informed about the nature of the expenses that are reimbursable and the

supporting documents required (in original). HR will ensure that candidate fills the necessary

reimbursement forms and that he/she receives the reimbursement at the earliest. 

• Outstation/International Candidates - HDFC will pay for appropriate air fare and expenses

incurred for the stay for candidates who they decide to fly from other locations. Prior approval

from the Regional HR Leader / HR Head is required to invite candidates. For candidates from

International Locations, prior approval from the HR Head needs to be taken.

Pre-Employment Check:

This will include both a professional reference check as well as the background check.

• Professional reference check will be completed by the hiring manager. HDFC will request

contact information for 2 references from the candidate, and check the quality of previous work

experience and key personal characteristics/conduct/ previous record etc.

• For key positions in areas, HDFC will also perform a background check to assess the integrity /

conduct of the candidate.

• The following information regarding the candidate will be verified:

- Proof of educational qualifications

- Any professional certificate that is essential to the job

-Address details

-Passport details

- Date of birth

-Proof of previous employment (service certificate)

Any negative feedback and comment in the reference check will be investigated by HR and if

found genuine shall be a cause for disqualification of the candidate or dismissal from

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employment.

Offer Process:

• Once the hiring decision is finalized, HR will prepare an offer / fitment as per the compensation

structure and grade and keeping in mind the internal equity.

• The offer would be communicated to the selected candidates by the hiring manager along with

HR. The candidate will sign the contract letter to formally accept employment from the

organization.

Pre-Employment Process:

As an organization, HDFC will make all necessary arrangements to ensure a smooth joining

process for the employees. HR will provide the candidate a check list prior to joining to ease

joining formalities.

Relocation for Employment:

Where the employee has to relocate and has been pre-approved by the HR Head and the staffing

leader, the relocating candidate shall be eligible for the following relocation assistance:

The joining employ has the option to avail temporary accommodation (which includes laundry)

for the first two weeks arranged by organization. The stay in company provided accommodation

can be extended by two weeks further based on specific approval from the Head HR. Where the

stay extends beyond 4 weeks, the respective will not be paid housing allowance for the

corresponding period.

Local travel assistance up to positions of RO/RM/equivalent and below will be reimbursed for

one week and for SRM/equivalent and above will be reimbursed up to two weeks.

Food expenses during the period will be reimbursed as per actual up to Rs 500/-per day per

person.

Approved reasonable expenses incurred in transporting the personal goods including the

transportation /registration of one automobile to the city of work. Employees are advised to use

the designated moving agencies as per rates negotiated by Administration. Where negotiated

rates are not available, the employee is required to submit 3 quotations and secure approval from

Administration before assigning the contract to a moving firm.

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Employment of Relatives:

The organization employs, purely on merit, the relatives of our employees as long as it does not

create a potential conflict of interest. To avoid a potential conflict of interest and to reduce the

possibilities of favoritism – the following guidelines must be followed:

Relatives are not assigned to a position where he/she has the opportunity to check, process, and

review, approve, audit or otherwise affect the work of the persons cited and above.

NO one is assigned to a position where she/he influences the professional progress or promotion

of the persons cited above.

If one is aware of a situation that appears to be an opportunity for people to display favoritism to

relatives, one should contact the Department Head or Human Resources Department.

Employees will not be part of the hiring process of their relatives

Definition of Relatives:

Relatives would include husband, wife, children, parents, sisters, brothers, first cousins, brothers-

in-law, sisters-in-law, mother –in-law, and father-in-law.

Employees who are aware of candidature of their relatives for the organization must immediately

report to the HR function in writing for information and records. Failure to immediately report

such cases will be considered as a serious violation of the recruitment policy and may entail a

disciplinary action.

Internship Program:

As part of university hire program, HDFC will provide internship opportunities to students. Such

internships will provide opportunities to students to learn while making real contributions to the

company. HDFC will follow the following process:

• HR will coordinate with business groups to identify potential opportunities for intern hires.

• Internship requests could be received either from the students directly or as nominations from

the educational institute.

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• HR and hiring manager to tele-interview the candidates with subsequent personal interviews in

the office

• HR to coordinate with the hiring manager to develop the project plan for the hire

Based on the demonstrated capability, the intern will be provided with the opportunity to work in

multiple departments to gain a wider business understanding

Internship Criteria:

Typically, the intern will be a pre-final year student of the Bachelor or Master degree programs

specializing in Financial Services/IT and any other business stream as required.

Interns will be expected to manage their won accommodation and it will not be provided by the

company Intern will be required to sign the confidentiality and code of conducts documents of

the company

Employee On-Boarding – Process:

The overall purpose of the new hire integration process is to ensure that the new employee is

able settle in smoothly and is able to contributing at the earliest.

Pre Employment Induction

HDFC’s employee induction process shall begin as per the employee accepts the job offer. The

process includes:

Welcome pack: As soon as the candidate accepts the offer, A welcome pack will be sent to the

employee A congratulatory note regarding the decision to join the organization

Contact details of a HR representative and the hiring manager A brief company overview

document

Pre-joining checklist: Include details of the documents required from the employee. In case the

employee is relocating from a different location, details of the relocation process and the visa

requirement will be outlined in this checklist. Expectations on the first day of the joining

Office resources: HR shall intimate the immediate supervisor the joining date and immediate

supervisor shall work with the IT and administration team to set up the following 5 days prior to

employee joining, the following elements and are in working order: Email ID, phone, computing

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resources, work space/office, access cards, joining kit including bank account opening form,

initial reading material

Post Joining Orientation and Induction:

Joining kit: The employee upon joining would be welcomed by the HR representative and would

be given a joining kit that will include: Access card, information on employee’s email and phone

number, Bank account opening form, corporate insurance application form(if applicable),HR &

Admin policy manual, other relevant reading material ( to be prepared by hiring manager)

Classroom Induction: The employee integration process will also include classroom training and

induction where the employee will receive presentations and trainings on various topics that

would further ingrain the into the organization On the job training: Besides formal training

sessions, the employee will undergo on-the-job function specific trainings that are facilitated by

the respective functions to help the new employee acquaint himself/herself with work in

progress.

Probation Policy:

Probation is a trial that is mutual opportunity for the employee and HDFC to confirm suitability

for continued employment. The probation period is to establish a stronger understanding of

mutual capabilities, expectations and understanding which may include functional training. The

employee must demonstrate suitability for continued employment. An assessment will be based

on factors related to work performance, work habits, productivity, attitude and compatibility,

attendance and punctuality, and any other matter that is linked to job performance and

expectations.

All new hires will be placed on probation for a period of 6 months from the date of joining

HR will initiate the confirmation process by sending an appraisal form to the immediate

supervisor before the completion of probationary period. The appraisal form will need to be

approved by the supervisor’s leadership. All letters of confirmation or extension of probation

will be signed by the HR head and will be stored in employee file for records.

2.4 RECRUITMENT PROCEDURE (ICICI)

Eligibility Criteria for ICICI Bank recruitment 2014-15 Probationary Officer:

34

i. Those who have completed graduation with 55% (Aggregate) marks in any discipline.

ii. Up to 25 years of age as on 31st December 2014 (should have been born on or after 31st

December 1989).

iii. Only shortlisted applicants will be invited for the selection process.

iv. The above will be considered as the threshold criteria for short listing.

Selection process

At ICICI Bank, the selection process aims at getting applicants who are likely to succeed at

various roles in the Bank. The endeavour is to select people who have a high service orientation,

are passionate about their career goals, and who display integrity and ethics in all engagements.

Depending on the level of recruitment, the selection process consists of following

combinations:

i. Aptitude Tests

ii. Group Discussion (This method is primarily used for campus selection

process)

iii. Psychometric Profiling

iv. Personal Interview

i. Aptitude Tests:

Designed for entry level jobs in the Bank, the aptitude test aims to assess basic aptitude of

applicants including Numerical, Verbal comprehension, logical reasoning and basic checking

abilities.

ii. Group Discussion:

  Based on case studies, the group discussions are mainly conducted to judge applicants on their

analytical thinking, approach to hypothetical building around business situations and the ability

to break down complex problems to arrive at simple solutions.

iii. Psychometric Profiling:

35

 

A questionnaire - based psychometric tool that assesses the typical or preferred behavior of

individuals in work settings. Applicants are required to complete the questionnaire before they

appear for the interview. This tool gives us a better understanding of the applicant and is not

used for elimination of applicants.

iv. Personal Interview:

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

selection process.

Group Discussion and Personal interviews will be conducted on the same day. After filling the

online application form, shortlisted candidates will be informed by SMS, Email or any other

means of communication.

Probationary Officer Training Programme of ICICI Bank Recruitment 2014-15:

i. Probationary Officer Training Programme is an initiative of ICICI Bank to attract young

talent who wish to pursue a career in banking. It is designed to develop specialists with

banking knowledge and skills to fulfil the future need of trained bankers.

ii. It is a one year full time residential training programme, conducted at ICICI Manipal

Academy campus, Bangalore. Applicants joining the Probationary Officer Training

Programme will be enrolled for MBA in Banking and Finance with Manipal University, an

UGC recognized University.

iii. Since its inception in 2007 more than 6,800 students have joined the Bank and currently

1,900 students are undergoing the training at the ICICI Manipal Academy Campus in

Bangalore.

iv. Training has blended curriculum with instructor led classroom sessions, e-learning and

internships at ICICI Bank branches/offices. The training imparts knowledge and skills in

36

core banking (banking products, banking operations, channels and customers, receipts and

payments, etc). the trainees will have the opportunity to specialize in one of the following

areas in banking:

Trade finance

Privilege banking

Rural inclusive banking

Retail banking

Any other profile as decided by ICICI

v. The participant are put through a very rigorous training with special emphasis on application

of knowledge and overall development of personality.

vi. The classroom sessions (7 months) are conducted at the ICICI Manipal academy and

internship (5 months) at any ICICI Branch or office ( within India).

vii. The probationary officers are paid stipend to meet the out of pocket expenses.

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

completion of the probationary officer training programme.

ix. The faculty comprises of experienced professionals in the domain of banking and finance

and behavioural sciences. There is a special focus on the overall grooming of the individuals

and that is further facilitated through a learning environment that is created through lectures

delivered by experts from ICICI Bank and the banking industry.

x. The campus is equipped with the best educational infrastructure e.g. air- conditioned

classrooms, video conferencing rooms, auditorium, well stocked library, boarding and

lodging facilities, recreation and sports facilities, etc.

Formal process of ICICI Bank

1. Understanding the Client’s Needs :

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They study client’s recruitment and discuss the details with client’s representative’s to obtain a

complete understanding of client’s needs, desire their executive may even visit client for formal

discussion. They work closely with their customer, to clearly understand how their business

relationship with them can grow. After this they ask client to submit documents like agency

agreement, demand letter of attorney, employee service agreement etc. to provide client a prompt

service.

2. Evaluation of Personnel:

Their executive team takes over from here. They refers to their exciting network and receive

immediate feedback on the availability of the required personnel. They make special effort to

keep their data bank updated and duly supplement it periodically. In order to widen their choice

or to locate persons to meet client’s precise specification, they may also advertise in the media or

if necessary, resort to headhunt.

They scrutinize the resumes/CV received and shortlist the candidates based on merit and then

invite them for an interview.

They carry out an in-depth analysis of the job specification and match the candidates to meet the

employer-employee equation, to avoid any disappointment due to a mismatch. The final short-

listed resume/CVs are dispatched to the employer for his final selection.

3. The Selection Option:

To make the final selections they offer the following options for consideration by the client. The

entire selection procedure is left to IMR, where a team of Professional /experts will take on the

responsibility of providing client the best work force as per client’s job.

4. Medical Checkup:

They retain the services of the best hospitals and clinics in India, which are accredited by Dept.

of Labour and from the Embassies to conduct medical examination of all the personnel intending

to work abroad.

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Examination includes HIV/AIDS Test (This test is compulsory) Blood Test, Chest X-Ray, Urine

& S tool Test, or any other kind of examination that might be specially requested by client.

5. Follow Up:

With each new assignment, their workers have to work with unfamiliar people, new procedures,

and changing routines. It is their responsibility to ensure that the transition goes as smoothly as

possible.

This makes far more confident and better- prepared workers. They follow up with selected

candidates for pre-departure formalities, so that they can proceed to work promptly. Their

medicals check-up, processing of travel documents, they take immigration formalities and air

tickets

6. Feedback from Client:

They keep in contact with the client even later getting a feedback from the client and

endeavoring to improve their system to give even better service to the client.

2.2 Literature Review:

Work by Hiltrop (1996):

Hiltrop (1996) was successful in demonstrating the relationship between the HRM practices,

HRM-organizational strategies as well as organizational performance. He conducted his research

on HR manager and company officials of 319 companies in Europe regarding HR practices and

policies of their respective companies and discovered that employment security, training and

development programs, recruitment and selection, teamwork, employee participation, and lastly,

personnel planning are the most essential practices (Hiltrop 1999). As a matter of fact, the

primary role of HR is to develop, control, manage, incite, and achieve the commitment of the

employees. The findings of Hiltrop’s (1996) work also showed that selectively hiring has a

positive impact on organizational performance, and in turn provides a substantial practical

insight for executives and officials involved.

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

As discussed by Jackson et al. (2009), Human resource management approaches in any business

organization are developed to meet corporate objectives and materialization of strategic plans via

training and development of personnel to attain the ultimate goal of improving organizational

performance as well as profits. The nature of recruitment and selection for a company that is

pursuing HRM approach is influenced by the state of the labour market and their strength within

it. Furthermore, it is necessary for such companies to monitor how the state of labour market

connects with potential recruits via the projection of an image which will have an effect on and

reinforce applicant expectations. Work of Bratton & Gold (1999) suggest that organizations are

now developing models of the kind of employees they desire to recruit, and to recognize how far

applicants correspond to their models by means of reliable and valid techniques of selection.

Nonetheless, the researchers have also seen that such models, largely derived from competency

frameworks, foster strength in companies by generating the appropriate knowledge against which

the job seekers can be assessed. However, recruitment and selection are also the initial stages of a

dialogue among applications and the company that shapes the employment relationship (Bratton

& Gold 1999). This relationship being the essence of a company’s manpower development.

Work by Silzer et al (2010):

However, the process of recruitment does not cease with application of candidature and selection

of the appropriate candidates, but involves sustaining and retaining the employees that are

selected, as stated by Silzer et al. (2010).

Work of Silzer et al. (2010) was largely concerned with Talent management, and through their

work they were successful in resolving issues like whether or not talent is something one can be

born with or is it something that can be acquired through development. According to Silzer et al

(2010), that was a core challenge in designing talent systems, facing the organization and among

the senior management. The only solution to resolve the concern of attaining efficient talent

management was by adopting fully-executable recruitment techniques. Regardless of a well-

drawn practical plan on recruitment and selection as well as involvement of highly qualified

management team, companies following recruitment processes may face significant obstacles in

implementation. As such, theories of HRM can give insights in the most effective approaches to

40

recruitment even though companies will have to employ their in house management skills for

applying generic theories across particular organizational contexts.

CHAPTER – 3

RESEARCH METHODOLOGY

3.1 Research Objectives of the study

The objective of my study is to understand and to make a comparative analysis of the recruitment

41

process of HDFC And ICICI Bank.

1. To know the prospects of recruitment procedure of HDFC and ICICI.

2. To critically analyse the functioning of recruitment procedures.

3.2 Purpose of the study

Recruitment is a process of searching for prospective candidates for the given job in the industry.

As we know it is very important for an industrial concerns to have efficient and effective

personnel with right quality and at right time and at right place available whenever they are

needed. Therefore, the purpose of the study is to analyze the comparative study of recruitment

process of HDFC and ICICI bank which is done by preparing a questionnaire and make the

questionnaire filled by employees so that the information regarding the recruitment process of

both the banks can be gathered and then it would be easy to make comparison.

The answers from the Employees will give the true picture of the recruitment process of both the

banks. Analyzing the candidates answers will help in understanding problems from the

Employees view, thus will help to develop the current system and making it more effective.

3.3 Research Methodology of the study

3. 3.1 Research Design

The research design for the study is of Exploratory type and the focus is given to discover the

possible measures, by detailed analysis, for the company which would be helpful up to some

extent to retain a good position in the competitive market.

Exploratory and descriptive research is a type of research conducted for a problem that has

not been clearly defined. Exploratory research helps determine the best research design, data

collection method and selection of subjects. It should draw definitive conclusions only with

extreme caution. Given its fundamental nature, exploratory research often concludes that a

perceived problem does not actually exist.

The research design is not formal and rigid one as the focus depends upon the availability of new

ideas and relationship among variables.

42

3.3.2 Data Collection Techniques

For the purpose of study both primary and secondary data have been used.

The secondary data have been collected from various magazines, newspaper and websites. For

the collection of primary data structure questionnaire has been used.For the purpose of knowing

whereabouts of the company in the bank market secondary data has disclosed many important

information market share of the company and its potential before the banking market leaders on

the basis of various attributes.

Primary data have been helpful to explore the opinion of their staff members and then the

conclusion is found as which bank have comparative better recruitment processes. On the basis

of information extracted from the primary data various measures are found which would be

helpful to it in making new strategies in near future.

3.3.3 Sample design

3.3.3.1 Population

The employees of HDFC and ICICI in different domains (H.R, Finance, Customer Handling,

Telecommunication etc.) are considered as the total population for the analysis.

3.3.3.2 Sample size

In sampling design the most complicated question is: what should be the size of the sample. If

the sample size is too small, it may not serve to achieve the objectives and if it is too large, we

may incur huge cost and waste resources. So sample must be of an optimum size that is, it should

neither be excessively large nor too small. Here, researcher has taken 40 as the sample size of

different skills and designation. They were give questionnaire for collecting the information in

the form of primary data.

3.3.3.3 Sampling method

As per the sampling procedure is concerned, “Convenience sampling” procedure is taken into

consideration. The sampling units include employees working in branch only. The reason is that

43

it is the only sampling method that provides essentially unbiased estimates having measurable

precision.

Convenience Sampling

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

Researchers make little or no effort to insure that sample is an accurate representation of some

larger group or population.

3.3.4 Method of data collection

The data has been collected from the employees of the bank through questionnaire which

constitutes primary data. The questions were distributed among them and were to be duly filled

by employee.

3.3.4.1 Instrument for data collection

A well structured Questionnaire has been used to collect the data from the employees. It includes

13 questions on comparative study of recruitment process of HDFC and ICICI bank.

3.3.4.2 Drafting of a questionnaire

A set of questionnaire was prepared to know the recruitment processes of bank. A questionnaire

has thirteen set of questions related to recruitment processes. Questions were designed by me as

per the guidance given by my college mentor. It has included closed-ended questions and used

Likert type scale to study the relationship between various variables related to the H.R policy i.e.

1 = Strongly Agree

2 = Agree

3 = No Option

4 = Disagree

5 = Strongly Disagree

44

3.3.5 Limitations

The project is limited in scope as the survey is conducted with a shortage of time constraint.

Some of the respondents were non co-operative in giving the information which hampered

the actual calculation.

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

information.

Some personnel were hesitating in giving appropriate information.

Some personnel were very busy, that is why their response could not be collected and

analyzed.

CHAPTER – 4

ANALYSIS & INTERPRETATION

4.1Analysis & Interpretation:

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1. Employees aware about recruitments.

S. No Response No. Of Respondents Percentages (%)

1 Strongly Agree 18 45

2 Agree 18 45

3 No Opinion 0 0

4 Disagree 4 10

5 Strongly Disagree 0 0

TOTAL 40 100

Table 4.1 Awareness about Recruitments

45

45

4

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.1 Aware about Recruitments

INTERPRETATION: From the above analysis, around 43% of employees completely know

about the recruitments. Where 45% agree, and 7% disagree as they do not know about the

recruitment. However, 5% of employees neither agree nor disagree i.e. they have no opinion for

the same.

2. Are employees aware of the recruitment process of their banks (HDFC and ICICI)?

S. No Response No. Of Respondents Percentages

1 Strongly Agree 14 35

2 Agree 24 60

3 No Opinion 2 5

46

4 Disagree 0 0

5 Strongly Disagree 0 0

TOTAL 40 100

Table 4.2 Aware of the Recruitment process

35

60

5

Aware of Recruitment process

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.2 Aware of the Recruitment process

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that

they are aware of the Recruitment process. Where 60% agree, 0% disagree and 2% neither agree

nor disagree for the same.

3. Which bank sent the recruitment information quickly?

S.No Response No. Of Respondents

(ICICI)

Percentages No. Of Respondents

(HDFC)

Percentages

47

1 Strongly Agree 14 35

8 2O

2 Agree 24 60 22 55

3 No Opinion 0 0 0 0

4 Disagree 2 5 8 20

5 Strongly Disagree 0 0

2 5

TOTAL 40 100 40 100

Table 4.3 Band sent the Recruitment information quickly

35

60

5

Bank sent the Recruitment information quickly(ICICI)

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.3 Sent the Recruitment information quickly(ICICI)

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that

they get the Recruitment information quickly. Where 60% agree, 2% disagree and 0% neither

agree nor disagree for the same.

48

20

55

20

5

Bank sent the Recruitment information quickly(HDFC)

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.4 Sent the Recruitment information quickly (HDFC)

INTERPRETATION: From the above analysis, around 20% of employees strongly agree that

they get the Recruitment information quickly. Where 55% agree, 20% disagree and 5% strongly

disagree for the same.

4. Which bank adopt the latest recruitment techniques?

S.No Response No. Of Respondents

(ICICI)

Percentages No. Of Respondents

(HDFC)

Percentages

1 Strongly Agree 32 80 14 35

2 Agree 8 20 24 60

3 No Opinion 0 0 0 0

4 Disagree 0 0 2 5

49

5 Strongly Disagree 0 0 0 0

TOTAL 40 100 40 100

Table 4.5 Adopt the latest recruitment techniques

80

20

Adopt the latest Recruitment techniques(ICICI)

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.5 Adopt the latest recruitment techniques (ICICI)

INTERPRETATION: From the above analysis, around 80% of employees strongly agree that

they get their bank adopts the latest Recruitment techniques and 20% agree where as 0%

disagree and 0% strongly disagree for the same.

50

35

60

5

Adopt the latest Recruitment techniques(HDFC)

Strongly AgreeAgreeNo OpinionDisagreeStrongly Disagree

Figure 4.5 Adopt the latest recruitment techniques (HDFC)

INTERPRETATION: From the above analysis, around 35% of employees strongly agree that

they get their bank adopts the latest Recruitment techniques and 60% agree where as 5%

disagree and 0% strongly disagree for the same.

6. Which bank does recruitment proactively?

ICICI HDFC0

10203040506070

Inferences - 60 % people says ICICI, 40 % people says HDFC bank did recruitment

proactively.

7. Which bank has the lengthy and complex process?

51

ICICI HDFC0

10

20

30

40

50

60

Inferences - 55 % people says ICICI, 45% says HDFC says bank have the lengthy and

complex recruitment procedure.

8. Which bank declares the result early?

ICICI HDFC0

10203040506070

Inferences- 60 % people says ICICI, 40 % people says HDFC whereas 20%people says both

the banks declared result early.

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

ICICI HDFC0

10203040506070

Inferences - 40 % people says ICICI, 60% people says HDFC and 10 % says both the banks

gave joining early after the final selection.

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

52

ICICI HDFC0

10203040506070

Inferences - 60 % people says

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

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

Yes No Depend

0

5

10

15

20

25

30

35

40

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

depends that . Are most of the administrative task are accomplished by the person

“Selecting Offer.

53

12. Is recruitment linked to human resource planning?

Yes No0

102030405060708090

Inferences -80% people says YES recruitment linked to human resource planning whereas 20 %

people says No recruitment linked is not to human resource planning.

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

HR Specialist Management0

10

20

30

40

50

60

70

80

90

Inferences -80% people says HR Specialists And 20 % people says Management are the

participants in the recruitment strategies before the announcement of a position.

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14. Recruitment process is done on which basis?

One On One One On Many0

10

20

30

40

50

60

70

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

peoples says Recruitment process is done on one on many basis.

CHAPTER- 5

FINDINGS

5.1 Findings:

5.1.1 For ICICI Bank

Today, ICICI is a well known name in BANKING SECTOR. During my project work,

I’ve noticed that the HR & Administration is very hard working and efficient too.

Therefore, anybody would like to work for it and want to be a part of it.

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The Recruitment & Selection Criteria is very good here and they keep on improving the

way they work for it. Moreover, the training program is very sound and employee does not

face any problem during the training period.

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

selection procedure of the organization for the effective accomplishment of the job.

A part from this the process being used is short in comparison to HDFC Bank

5.1.2 For HDFC Bank

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

Many people in the organization today are in the wrong jobs and as a result, they are not

utilizing their full potential.

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

Most recruitment that involves managers is done during discussions at lunch hour, at social

clubs or during the coffee break time.

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

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

positions.

Psychometric test is not conducted during the selection process.

Confusion in the designation and level to the employees even after permanent status for

employment is given.

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

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

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

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CHAPTER- 6

RECOMMENDATIONS AND CONCLUSION

6.1 Recommendations:

Psychometric tests have to be conducted to assessing the personality of the applicants – will

they fit in?

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

selection process.

Adopting adequate recruitment procedures to employ efficient and talented people.

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

is done.

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

organization.

Provide orientation training to all new employees before their initial work assignments and

to all current employees who receive a different task or job.

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

6.2 Conclusion:

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

whole HR systems in the organization. The effectiveness of many other HR activities, such

as selection and training depends largely on the quality of new employees attracted through

the recruitment the recruitment process.

Policies should always be reviewed as these are affected by the changing environment.

Management should get specific training on the process of recruitment to increase their

awareness on the dangers of wrong placements.

Effective recruitment is important in achieving high organizational performance and

minimizing labor turnover. As of now HDFC Bank Ltd. has a team of effective human

resource which is efficiently managing the organization at its best. Though the recruitment

process adopted by the organization needs to be improved, challenges are ahead for the HR

Department to recruit people after the effect of recession.

In the present competitive & dynamic environment, it has become essential for organization

to build and sustainable.

In competitive advantage, the Communication skill set has assumed more importance than

even before. Dynamic and growth-oriented organization recognizes Communication as an

important aspect of the Recruitment and Selection system for managerial function in a

rapidly changing and economic environment.

Insurance industries should possess a valuable work force with good communication skill

sets to get a good deal or business from their customers. In this sector the Open Market

channel is the main source of revenue for the company for which they should be able to

communicate well with their clients. Then the company can reach its profitability and

objectives easily.

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The company should take the suggestions and ideas from the employees and can conduct

and examine the communication skill set within the employees. So that they can analyse the

need and act accordingly for a better result and the growth of its own and valuable

workforce.

BIBLIOGRAPHY

Books Referred:

ASWATHAPPA, K. (2009), Human Resource Management

DESSLER, GARY (2008), Human Resource Management

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

(New Delhi)

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

Websites Referred:

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

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

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

http://www.icicibank.com

ANNEXURES

QUESTIONNAIRE:

1. Are you aware of the recruitment process of HDFC and ICICI Bank?

1 = Strongly Agree

2 = Agree

3 = No Option

4 = Disagree

5 = Strongly Disagree

60

2. In your view, which bank sent the information quickly?

ICICI

HDFC

Both

3. Which bank adopted latest recruitment techniques?

ICICI

HDFC

Both

4. Which bank does recruitment proactively?

ICICI

HDFC

Both

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

ICICI

HDFC

Both

6. Which bank declares the result early?

ICICI

HDFC

Both

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

ICICI

HDFC

Both

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

Within 15 days

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15 Days- 20 Days

Within one month

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

ICICI

HDFC

Both

10. Is recruitment linked to human resource planning?

Yes

No

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

HR Specialist

Management

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

One On One

One On Many

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