1. 1
PROJECT REPORT
ON
“RECRUITMENT & SELECTION”
IN
“HDFC STANDARD LIFE”
BY
KARPAMULA DIVYA
H.T. NO: 1053-12-672-045
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE
MASTER’S DEGREE IN BUSINESS
ADMINISTRATION
(2012-2014)
Department of Business Administration
A.V.College PG Centre
(Affiliated to Osmania University)
Hyderabad

2. 2
DECLARATION
I, the undersigned, hereby declare that the project report entitled
“RECRUITMENT & SELECTION” carried out at HDFC STANDARD
LIFE. Is my original work written and submitted by me in partial fulfillment
of Master`s Degree in Business Administration of Osmania University. I
also declare that this project has not been submitted earlier in any other
university or institution.
Name of the student
k.divya Signature of the student
H.T.No:1053-12-672-045

3. 3
ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense
of gratitude to the authorities of HDFC STANDARD LIFE. For giving me
the opportunity to under take this project work in their esteemed
organization. I profusely thank Mr. RAVI K
My sincere thanks to A.V .College PG Centre principle Mr.
MADHUSHUDAN RAO, HOD Mr.P. BUCHA REDDY, and my project
guide Mrs. ARCHANA. For the kind encouragement and constant support
extended in completion of this project work. From the bottom of my heart
I am also thankful to all those who have incidentally helped me,
through their valued guidance, co-operation and unstinted support during the
course of my project.
K.Divya

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INDEX
S.No: CHAPTER PAGE NO.
1. CHAPTER- I 5-12
INTRODUCTION
 Scope of the Study
 Objectives of the Study
 Methodology of the Study
 Limitations of the Study
2. CHAPTER- II 13-33
 INDUSTRY PROFILE &
 COMPANY PROFILE
3. CHAPTER- III 34-56
 REVIEW OF LITERATURE
4. CHAPTER- IV 57-76
 DATA ANALYSIS AND
 INTERPRETATION
5. CHAPTER- V 77-85
 FINDINGS
 SUGGESTIONS
 CONCLUSION
 BIBILOGRAPHY
 QUESTIONNAIRE

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CHAPTER-I
INTRODUCTION

6. 6
INTRODUCTION:
Defining Management education:
Management education deals with the art and science of directing and controlling or
handling any organization, especially under resource constraint situations, be it business,
industry, public system or government. Such education not only covers a thorough
understanding of behavioral science. Human Resource Development, Finance,
Marketing, Operations and Information systems, but also calls for an adequate grasp of
the National and Global economics, politics, Sociology. Legal Framework, Technology
trends and natural environment in which the organization has to function and proper the
formulation of effective strategies. All organizations need to have a vision and mission
with a milestone to achieve a common goal.
Experience of successful organizations has proved beyond doubt the personality
factory plays a key role in day-to-day interactions. In today's competitive environment,
organizations are becoming more and more personality conscious and are making efforts
to develop the facets of personality of their employees. The focus is on developing a
pleasing personality that insures success and happiness emphasizing on motivational as
well as behavioral aspects of personality. Institutions offering management programmers
cannot afford to ignore this vital component. In fact, planned efforts are required to be
made to evolve comprehensive programmers for personality development in management
education.
Definition:
The conscious and specific direction of effort towards the quality of the workforce in
the short and long term. It involves all quality of the workforce in the short and long term.
It involves all processes and activities aimed at managing the human resource of an
organization i.e. Manpower, planning, recruitment, training and development, career
management and human performance. It also involves the productive use of people in
achieving the organizations strategic business objectives and the satisfaction of the
individual employees needs. In other words it is a formal system for the management of
people within the organization. It is mainly divided in to three major areas, staffing,

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rewarding and designing work.
Human resources planning means deciding the number and type of the human resources
required for each job, unit and the total capacity for a particular future date in order to
carry out organizational activities. Human resources planning as "a process by which an
organization should move from its current man power position to its desired manpower
position. Though planning management strives to have the right number and right kind of
people at the right place at the right time, doing things, which result in both the
organization and the individual receiving maximum long run benefit.
Once the required number and the kind of human resources are determined, the
management has to find places where required human resources are/will be available and
also work out strategies for attracting them towards the organization before selecting
suitable candidates for jobs. This process is generally known as recruitment. Technically
speaking the function recruitment precedes the selection function and it includes only
finding, developing the sources of prospective employees and attracting them to apply for
jobs in an organization
To define and describe the scope of human resource management requires an
understanding of the influences that the changing environment in which human resource
management is situated have on human resource management systems and roles. For this
reason, a brief survey is given of aspects of the environment that were taken into account
when compiling the definition and scope of human resource management.
The organizational context in which HRM finds itself at present is one of rapid
change and considerable uncertainty. As various views of HRM were discussed, it
became apparent that this sub-field of management is, in a phase of transition. In the
context of traditional organizational structures, HRM was placed as a function within a
'silo', as were other organizational functions like finance, production and marketing.
However, a turbulent environment has brought a concurrent change in organizational
structures and the nature of HRM and its functions are in the process of change. Many
organizations are now structured around multi-disciplinary project teams with the HRM
professional as one member of the team or as consultants to team, and where line

8. 8
managers take on various HRM roles.
Human resource management is also in the process of change with regard to the
nature of the role performed. In the past, many functions were performed by HRM
professional themselves, the role they are taking on, is one of consultants to line
management, where line mangers perform many of the functions traditionally handled by
HRM professional. Similarly there is a trend in which businesses are shedding all
functions that are not directly related to core business. In the process many HRM
functions are being outsource. Hence the change in the nature of services provided. The
activity of generating unit standards and designing qualifications can be used as an
opportunity to catapult HRM Practices into the future. To do this, those issues that are
going to shape the future for HRM practices need to be identified and analyzed especially
in relation to current roles that will still be required of HRM practitioners. These issues
are central to the activity of generating unit standards (e.g. outsourcing, societal
responsibility) and their impact on HRM roles (e.g. stating, performance management). In
addition, supportive roles or functions required by HRM practitioners will also have to be
identified in order to complete the HRM practitioners qualifications design packages.
When people mention HR (human resource) these days, a few bywords such as
talent management and human capital evidence that human resource as a discipline is
changing to keep up with the demands of business in the 21st century can be heard. With
new opportunities opening up for HR professional, what will the future hold, and will this
future be right?
Five steps to help HR professional prepare for the future:
 RETHINK THE ROLE: HR professionals need to think of themselves as
managers who are part of a company management team.
 INVEST IN BUSINESS TRAINING: Having an HR diploma is no longer
enough. Financial and business training is also required, in addition to well-
developed leadership skills.
 CREATIVITY: Those in HR should know how to advise leaders on subjects as
smotional intelligence, creating a fun but not trivial work environment and

9. 9
inspiring commitment.
 MOVE AROUND A GREAT DEAL: As an HR professional, work for an HR
outsourcing firm. Work as an HR executive within a firm. Work as a consultant
not to HR, but to business managers who have talent management challenges to
address.
 RECOGNIZE THE CHALLENGE: HR professional needs to be proactive in
changing the role of human resources and in building a better future for HR.
Human resources planning means deciding the number and type of the human resources
required for each job, unit and the total capacity for a particular future date in order to
carry out organizational activities. Human resources planning as "a process by which an
organization should move from its current man power position to its desired manpower
position. Though planning management strives to have the right number and right kind of
people at the right place at the right time, doing things, which result in both the
organization and the individual receiving maximum long run benefit.
Once the required number and the kind of human resources are determined, the
management has to find places where required human resources are/will be available and
also work out strategies for attracting them towards the organization before selecting
suitable candidates for jobs. This process is generally known as recruitment. Technically
speaking the function recruitment precedes the selection function and it includes only
finding, developing the sources of prospective employees and attracting them to apply for
jobs in an organization
Objective of the study
The purpose of the study is to learn the practical applicability of the theoretical
knowledge gained about recruitment and selection process.
 To gain knowledge about the process of recruitment and selection
 To know the effectiveness or ineffectiveness of the process of recruitment and
selection
 To provide suggestions if any, for having an effective recruitment and selection
process

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 To prepare the employees to move higher in their jobs.
 To impart new entrants with basic HRD skills and knowledge.
 To develop the potentialities of the employees for the next level job.
Need of study:
The purpose of study is to learn the practical applicability of the theoretical knowledge
gained about recruitment and selection process.
• To gain knowledge about, the process of recruitment and selection in HDFC
STANDARD LIFE INSURANCE
• To know the effectiveness or ineffectiveness of the process of recruitment and
selection in HDFC STANDARD LIFE INSURANCE.
SCOPE OF THE STUDY:
The study covers HDFC STANDARD LIFE INSURANCE in Hyderabad consisting of
100 employees.
RESEARCH METHODOLOGY:
DATA COLLECTION METHODS:
The data for the study was collected through primary and secondary METHODS
Primary Data;
Primary methods are those methods that provide first hand information. The methods
followed were interview methods and questionnaire method
(a) Interview method:
By this method the employees and managers of the HDFC STANDARD LIFE
INSURANCE were asked questions regarding the recruitment and selection process, its
effectiveness and the relevant or required changes they intended to have in the present

11. 11
recruitment and selection process of the company. The managers of different departments
were the majority to be interviewed in the entire sample taken.
Secondary Data:
Secondary methods are those methods that provide already existing information of the
past, also called as second hand information. The information was obtained from the
different HR journals published by the organization for various purposes like HR
'department personal use, reference by any other department about the performance of
various activities that have been started by the HR department, to know about the
performance appraisal system or the bonus system etc.
PERIOD OF THE STUDY:
Since so many years HDFC STANDARD LIFE INSURANCE
Hyderabad has been following the same procedure of appraisals for their executives and
employees and for the study of my project last on-year data has collected on Selection
process.
Sampling technique:
Sampling technique is adopted in multi stages.
Stage 1:
Company is selected from particular region only.
Stage 2:
A Sample of 100 is selected through convenient random sampling.
Population Size: 487.
Sample Size: 100

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Limitations of the study:
There are certain limitations of the concept of empowerment. It may be cost consuming
in selecting personnel, training costs and labor costs may be high, it may result in slower
or inconsistent services and poor use of the technique of empowerment.
At the outset, Managers must also accept the fact that not all employees want to
be empowered. Many workers just work better in jobs that are clearly defined and
closely supervised. Once both employees and managers have received proper training,
the next step is to give employee’s control of the resources needed to make the
improvements in their job and work processes.
By giving employees information, resources and training and by following with
measurements and reinforcement, Human Resources can create an empowered
environment. But Empowerment should be continuous process like quality improvement
and it is like a race without a finish line. Those companies that take the first step by
creating an environment conductive to empowerment will be at the head of the pack
 As the period of study is limited for 45 days the data collected is very limited.
 Due to time constraints, data is collected from limited number of employees of
the Company.
 As the data is collected in the working hours of the employees, they are busy
they could not give the complete response.
 Unable to obtain proper feed back because of the limited time period & busy
schedule of the employees.
 Problem with the confidential information.

13. 13
CHAPTER-II
COMPANY PROFILE
&
INDUSTRY PROFILE

14. 14
Insurance in India
Insurance is a subject listed in the concurrent list in the Seventh Schedule to the
Constitution of India where both centre and states can legislate. The insurance sector has
gone through a number of phases by allowing private companies to solicit insurance and
also allowing foreign direct investment of up to 26%, the insurance sector has been a
booming market. However, the largest life-insurance company in India is still owned by
the government.
History
In India, insurance has a deep-rooted history. Insurance in various forms has been
mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and
Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in
these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed
in times of calamities such as fire, floods, epidemics and famine. The early references to
Insurance in these texts has reference to marine trade loans and carriers' contracts.
Insurance in its current form has its history dating back until 1818, when Oriental Life
Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of
European community. The pre-independence era in India saw discrimination between the
lives of foreigners (English) and Indians with higher premiums being charged for the
latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded. In the
year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business. The Life Insurance Companies Act, 1912 made it
necessary that the premium-rate tables and periodical valuations of companies should be
certified by an actuary. However, the disparity still existed as discrimination between
Indian and foreign companies. The oldest existing insurance company in India is the
National Insurance Company Ltd., which was founded in 1906. It is in business.

15. 15
The Government of India issued an Ordinance on 19th January, 1956 nationalising the
Life Insurance sector and Life Insurance Corporation came into existence in the same
year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers
as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the
General Insurance Business (Nationalisation) Act was passed by the Indian Parliament,
and consequently, General Insurance business was nationalized with effect from 1st
January, 1973. 107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd and the United India Insurance Company Ltd. The General
Insurance Corporation of India was incorporated as a company in 1971 and it commence
business on January 1st 1973.
The LIC had monopoly till the late 90s when the Insurance sector was reopened to the
private sector. Before that, the industry consisted of only two state insurers: Life Insurers
(Life Insurance Corporation of India, LIC) and General Insurers (General Insurance
Corporation of India, GIC). GIC had four subsidiary companies.
With effect from December 2000, these subsidiaries have been de-linked from the parent
company and were set up as independent insurance companies: Oriental Insurance
Company Limited, New India Assurance Company Limited, National Insurance
Company Limited and United India Insurance Company Limited.
Industry structure
Currently India is a US$41 billion industry. Currently, in India only two million people
(0.2 % of the total population of 1 billion) are covered under Mediclaim, whereas in
developed nations like USA about 75 % of the total population are covered under some
insurance scheme. With more and more private companies in the sector, the situation may
change soon.

16. 16
Specialization
ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is
limited by legislation but enjoy special powers.
Acts
The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. It is governed by a
number of acts.
The Insurance Act of 1938 was the first legislation governing all forms of insurance to
provide strict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the
Life Insurance Corporation Act. All 245 insurance companies operating then in the
country were merged into one entity, the Life Insurance Corporation of India.
The General Insurance Business Act of 1972 was enacted to nationalise the about 100
general insurance companies then and subsequently merging them into four companies.
All the companies were amalgamated into National Insurance, New India Assurance,
Oriental Insurance and United India Insurance, which were headquartered in each of the
four metropolitan cities.
Until 1999, there were no private insurance companies in India. The government then
introduced the Insurance Regulatory and Development Authority Act in 1999, thereby
de-regulating the insurance sector and allowing private companies. Furthermore, foreign
investment was also allowed and capped at 26% holding in the Indian insurance
companies.
In 2006, the Actuaries Act was passed by parliament to give the profession statutory
status on par with Chartered Accountants, Notaries, Cost & Works Accountants,
Advocates, Architects and Company Secretaries.

17. 17
A minimum capital of US$80 million(Rs.400 Crore) is required by legislation to set up
an insurance business.
Authorities
The industry recognises examinations conducted by IAI (for actuaries), III (for agents,
brokers and third-party administrators) and IIISLA (for surveyors and loss assessors).
TAC is the sole data repository for the non-life industry.
IBAI gives voice for brokers while GI Council and LI Council are platforms for insurers.
AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI
cater to the employees of the insurers.
In addition, there are a dozen Ombudsman offices to address client grievances.
Insurance Education
National Insurance Academy, Pune is apex education and capacity builder institute in
India and only one in Africa & Asia. NIA was founded as Ministry of Finance initiative
with capital support from the then public insurance companies, both Life (LIC) and Non-
Life (GIC, National, Oriental, United & New India). NIA has 32 acre campus & 30+
faculty member imparting training, conducting research and providing consulting
services in insurance sector. NIA run 2 year PGDM (Insurance) to mould youth in
insurance specialization

18. 18
COMPANY PROFILE

19. 19
COMPANY PROFILE
Introduction
HDFC Life, one of India's leading private life insurance companies, offers a range of
individual and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC), India's leading housing finance
institution and Standard Life plc, the leading provider of financial services in the United
Kingdom.
HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of
equity in the joint venture, while the rest is held by others.
HDFC Life's product portfolio comprises solutions, which meet various customer needs
such as Protection, Pension, Savings, Investment and Health. Customers have the added
advantage of customizing the plans, by adding optional benefits called riders, at a
nominal price. The company currently has 29 retail and 5 group products in its portfolio,
along with five optional rider benefits catering to the savings, investment, protection and
retirement needs of customers.
HDFC Life continues to have one of the widest reaches among new insurance companies
with more than 500branches servicing customer needs in over 700 cities and towns. The
company has a strong base of Financial Consultants.
HDFC Standard Life believes that establishing a strong and ethical foundation is an
essential prerequisite for long-term sustainable growth. To ensure this, we have
concentrated our focus on expansion of branch network, organising an efficient and well
trained sales force, and setting up appropriate systems and processes with optimum use of
technology. As all these areas form the basic infrastructure for establishing the highest
possible customer service standards.
Our core values are drilled down to all levels of employees, as these are inviolable. We
continue to promote high integrity in business practices and shun short cuts and unethical

20. 20
practices, as we wish to be perceived as an institution with high moral standing. Since our
inception in 2000, when the Indian insurance space was opened for private participation,
we have consistently focused on setting benchmarks in all aspect on insurance business.
Being the first private player to be registered with the IRDA and the first to issue a policy
on December 12, 2000,
HDFC Standard Life is a strong, financially secure business supported by two strong and
secure promoters - HDFC Ltd and Standard Life. HDFC Ltd's excellent brand strength
emerges from its unrelenting focus on corporate governance, high standards of ethics and
clarity of vision. Standard Life is a strong, financially secure business and a market leader
in the UK Life & Pensions sector.
Our brand has managed to set a new standard in the Indian life insurance communication
space. We were the first private life insurer to break the ice using the idea of self-respect
instead of 'death' to convey our brand proposition (Sar Utha Ke Jiyo). Today, we are one
of the few brands that customers recognize, like and prefer to do business. Moreover, our
brand thought, Sar Utha Ke Jiyo, is the most recalled campaign in its category.
We follow a conservative investment management philosophy to ensure that our
customer's money is looked after well. The investment policies and actions are regularly
monitored by a formal Investment Committee comprising non-executive directors and the
Principal Officer & Executive Director.
As a life insurance company, we understand that customers have invested their savings
with us for the long term, with specific objectives in mind. Thus, our investment focus is
based on the primary objective of protecting and generating good, consistent, and stable
investment returns to match the investor's long-term objective and return expectations,
irrespective of the market condition.
Despite the criticality of life insurance, sales in the industry have been characterized by
over reliance on tax benefits and limited advice-based selling. Our eight-step structured
sales process 'Disha' however, helps customers understand their latent needs at the first
instance itself without focusing on product features or tax benefits. Need-based selling

21. 21
process, 'Disha', the first of its kinds in the industry, looks at the whole financial picture.
Customers see a plan not piecemeal product selling.
HDFC Standard Life has fully implemented a risk control framework to ensure that all
types of risks (not just financial) are identified and measured. These are regularly
reported to the board and this ensures that the company management and board members
are fully aware of any risks and the actions taken to ensure they are mitigated.
Training is an integral part of our business strategy. Almost all employees have
undergone training to enhance their technical skills or the softer behavioural skills to be
able to deliver the service standards that our company has set for itself. Besides the
mandatory training that Financial Consultants have to undergo prior to being licensed, we
have developed and implemented various training modules covering various aspects
including product knowledge, selling skills, objection handling skills and so on.
HDFC Standard Life do not focus in the business of ramping up the topline only, but to
create maximisation of stakeholder's value. Today, we are extremely satisfied with the
base that we have created for the long-term success of this company.
We have initiated and implemented many new processes, some of which were found
useful by the IRDA and later made mandatory for the entire industry.The agents who
successfully completed this training only, were authorized by the company to sell ULIPs.
This has now been made compulsory by IRDA for all insurance companies under the new
Unit Linked Guidelines
HDFC Standard Life's wide and diversified product portfolio help individuals meet their
various needs, be it:
 Protection: Need for a sound income protection in case of your unfortunate
demise
 Investment: Need to ensure long-term real growth of your money
 Savings: Save for the milestones and protect your savings too
 Pension: Need to save for a comfortable life post retirement
 Health: Cover for health related exigencies

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Our Parentage
HDFC Limited
HDFC Limited, India's premier housing finance institution has assisted more than 3.8
million families own a home, since its inception in 1977 across 2400 cities and towns
through its network of over 289 offices. It has international offices in Dubai, London and
Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist
NRI's and PIO's to own a home back in India. As of March 2011, the total asset size
has crossed more than Rs. 1,32,727crores including the mortgage loan assets of more
than Rs.1,17,126 crores. The corporation has a deposit base of over Rs. 24,625 crores,
earning the trust of nearly one million depositors. Customer Service and satisfaction has
been the mainstay of the organization. HDFC has set benchmarks for the Indian housing
finance industry. Recognition for the service to the sector has come from several national
and international entities including the World Bank that has lauded HDFC as a model
housing finance company for the developing countries. HDFC has undertaken a lot of
consultancies abroad assisting different countries including Egypt, Maldives, Mauritius ,
Bangladesh in the setting up of housing finance companies.
Standard Life Plc.
Established in 1825, Standard Life Plc. is a leading provider of long term savings and
investments to around 6 million customers worldwide. Headquartered in Edinburgh,
Standard Life has around 9,000 employees across the UK, Canada, Ireland, Germany,
Austria, India, USA, Hong Kong and mainland China. The Standard Life group includes
savings and investments businesses, which operate across its UK, Canadian and European
markets; corporate pensions and benefits businesses in the UK and Canada; Standard Life
Investments, a global investment manager, which manages assets of over £157bn
globally; and its Chinese and Indian Joint Venture businesses. At the end of April 2011
the Group had total assets under administration of £198.4bn. Standard Life plc is listed
on the London Stock Exchange and has approximately 1.5 million individual
shareholders in over 50 countries around the world.

23. 23
Our Vision & Values
Our Vision
'The most successful and admired life insurance company, which means that we are the
most trusted company, the easiest to deal with, offer the best value for money, and set the
standards in the industry'.
'The most obvious choice for all'.
Our Values
Values that we observe while we work:
 Integrity
 Innovation
 Customer centric
 People Care "One for all and all for one"
 Team work
 Joy and Simplicity
Board Members
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Chairman and
Director of Housing Development Finance Corporation Limited (HDFC Limited). He
joined HDFC Limited in a senior management position in 1978. He was inducted as a
whole-time director of HDFC Limited in 1985 and was appointed as its Chairman in
1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England &
Wales).
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000.
He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He
joined HDFC Limited in 1981 and became an Executive Director in 1993. He was
appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of

24. 24
Chartered Accountants of India and a member of the Michigan Association of Certified
Public Accountants.
Ms. Renu S. Karnad is the Managing Director of HDFC Limited. She is a graduate in
Law and holds a Master's degree in Economics from Delhi University. She has been
employed with HDFC Limited since 1978 and was appointed as the Executive Director in
2000 and Deputy Managing Director in 2007. She is responsible for overseeing all
aspects of lending operations of HDFC Limited.
Mr. David Nish joined Standard Life on 1st November 2006 as Group Finance Director
and remained in that position until December 2009. He is the Chief Executive at Standard
Life Plc. In 2000 he was awarded the Scottish Business Awards Finance Director of the
Year and from 2004 to 2005 he served on the Government Employers Pension Task
Force. He is a member of the Institute of Chartered Accountants of Scotland. He joined
the Board of Directors in February 2010.
Mr. Nathan Parnaby is appointed as the Chief Executive, Europe & Asia of Standard
Life in the year 2010. Nathan joined Standard Life in 1982 as Investment Manager,
responsible for all UK net funds. He was appointed a Director of the Standard Life
Investments’ board. He is a Mathematics graduate from Oxford University and the
Member of the Securities Institute. He joined the Board of Directors in December 2009.
Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments
Limited and is responsible for overseeing Investment Process & Chief Executive Officer
Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding
the positions of UK Economist, Chief Economist, Executive Director, Director of
Controls and Strategy HSBS Securities and Managing Director International Equities. He
was also responsible for Economic and Investment Strategy research produced on a
worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr.
Skeoch is a Fellow of the Securities Institute, Fellow of the Royal Institute for the
Encouragement of the Arts, Manufacture and Commerce, BA, MA.

25. 25
Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the
Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and
Managing Committee Member of Midsnell Group International, an International
Association of Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing accounts of large public
limited companies and nationalised banks, financial and taxation planning of individuals
and limited companies and also has substantial experience in structuring overseas
investments to and from India.
Associate Companies
HDFC Limited
HDFC Bank
HDFC Mutual Fund

26. 26
HDFC Sales
HDFC ERGO General Insurance
HDB Financial Services
HDFC Securities
Other Companies
 HDFC Trustee Company Ltd.
 GRUH Finance Ltd.
 HDFC Developers Ltd.
 HDFC Property Ventures Ltd.
 HDFC Ventures Trustee Company Ltd.
 HDFC Investments Ltd.
 HDFC Holdings Ltd.
 Credit Information Bureau (India) Ltd
 HDFC Securities
 HDB Financial Services

27. 27
Corporate Governance
The Corporate Governance Policy provides the framework under which the Board of
Directors operates. It includes its corporate structure, culture, policies and the manner in
which it deals with various stakeholders. The governance policies address the
responsibilities, authority and administration of the Board of Directors. The policies also
include the responsibilities of the Principal Officer and define the reporting relationships.
Timely and accurate disclosure of information regarding the financial situation,
performance, board constitution, ownership of the company etc. is an important part of
corporate governance. Corporate governance arrangements are those through which an
organisation directs and controls itself and the people associated with it.
'HDFC' - a household name that Indians proudly reckon with!
Housing Development Finance Corporation Limited (HDFC Ltd.) was established in
1977 with the primary objective of meeting a social need of encouraging home ownership
by providing long-term finance to households. Over the last three decades, HDFC has
turned the concept of housing finance for the growing middle class in India into a world-
class enterprise with excellent reputation for professionalism, integrity and impeccable
service.
A pioneer and leader in housing finance in India, since inception, HDFC has assisted
more than 38 Lakhs customers to own a home of their own, through cumulative housing
loan approvals of over Rs. 2.98 trillion and disbursements of over Rs. 2.42 trillion as at
March 31, 2010.
HDFC has a wide network of 289 offices (which includes 71 offices of HDFC's wholly
owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns
& cities spread across the country. It also has offices in Dubai, London and Singapore
and service associates in the Middle East region, to provide housing loans and property
advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).

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HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity
of vision, percolate through the organization. Trust, Integrity, Transparency and
Professional Service are the important pillars of the brand HDFC and most importantly,
people - both employees and customers - are its brand ambassadors.
Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's
personalised service begins as soon as a customer approaches HDFC, and over time it
progresses into a long and meaningful relationship. State-of-the-art information systems
supported by strong in-house training programmes conducted at its specialized training
centre in Lonavla, have equipped HDFC to respond swiftly to the ever-changing
customer needs and thereby empower customers in making the right home buying
decision. This is what sets apart HDFC's customer service philosophy - 'With You, Right
Through'.
HDFC's specialist team of over 1,500 trained and experienced professionals follows a
'single-window concept' for providing smooth and value added services at all stages. The
team guides the customers right through the entire process of property purchase - be it
property search assistance, technical support prior to finalising the property, legal advice
on property related documentation, personalised home loan counseling or providing
tailor-made repayment options to suit the customer's specific requirements.
HDFC's wide product range includes loans for purchase and construction of a residential
unit, purchase of land, home improvement loans, home extension loans, non-residential
premises loans for professionals and loan against property, while its flexible repayment
options include Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan
(FLIP).
HDFC also has a robust deposits mobilisation programme. HDFC has been able to
mobilise deposits from over 10 lac depositors. Outstanding deposits grew from Rs. 1,458
crores in March 1994 to Rs 23,081 crores in March 2010. In addition, HDFC has received
'AAA' rating for its Deposit products for highest safety from both CRISIL and ICRA for
sixteen consecutive years.

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Over the years, HDFC has emerged as a financial conglomerate with its presence in the
entire gamut of financial services including banking, insurance (life and non-life), asset
management, real estate venture capital and more recently education loans.
Today, HDFC is recognized as one of the Best Managed Companies in India and is a
model housing finance company for developing countries with nascent housing finance
markets. HDFC has undertaken several consultancy assignments in various countries
across Asia, Africa and East Europe to support and establish their housing finance
institutions.
At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to
its 'learning by doing' philosophy. As part of its social objectives, HDFC has always
endeavoured to contribute to economic development and social upliftment of the weaker
sections of society and has professionally nurtured each of its social initiative as an
investment. HDFC has undertaken development oriented work and supported several
social initiatives in the areas of education, child welfare, medical research, welfare for the
elderly and the handicapped among several others.
HDFC is how millions of Indian families spell the word 'Home' as the brand not only
offers Housing Finance, but also Total Housing Solutions.
The HDFC Advantage
 Pioneers of Housing Finance in India with over 33-34 years of lending
experience.
 Widest range of home loan & deposit products.
 Vast network of over 289 interconnected offices which includes 3 international
offices.
 Most experienced and empowered personnel to ensure smooth & easy processing.
 Online loan application facility at www.hdfc.com and across-the-counter services
for new deposits, renewals & repayments.
 Counseling and advisory services for acquiring a property.
 Flexible loan repayment options

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 Free & safe document storage.
Housing Finance Sector
Against the milieu of rapid urbanization and a changing socio-economic scenario, the
demand for housing has grown explosively. The importance of the housing sector in the
economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total housing shortfall is estimated to be 19.4 million units, of
which 12.76 million units is from rural areas and 6.64 million units from urban areas. The
housing industry is the second largest employment generator in the country.
Background & Objectives
The ideal way to connect with the core of any company is to understand its background
and objectives. We at HDFC aspire to provide our customers with unique home loan
solutions and make home ownership as easy and simple as unlocking a door with a key.
Background
HDFC was incorporated in 1977 by Mr. Hasmukhbhai Parekh with the primary
objective of meeting a social need - that of promoting home ownership by providing
long-term finance to households. The launching of HDFC was meant to be one small step
in dealing with the availability of housing accommodation in India which was then
virtually non-existent. HDFC as a pioneer launched India's first specialized home loan
company with an initial capital of Rs. 100 million.
Business Objective
Our primary objective is to enhance residential housing stock in the country through the
provision of housing finance in a systematic and professional manner, and to promote
home ownership. We aim to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic financial markets.

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Our goals:
 Develop close relationships with individual households.
 Maintain our position as the premier housing finance institution in the country.
 Transform ideas into viable and creative solutions.
 To grow through diversification by gaining leverage from our existing client base.
 To nurture the values and ethos of Brand HDFC through all its Subsidiaries and
Associate Companies.
Our growth strategies:
 Increase the return on equity each year by 1 percentage point in order to maximise
shareholder value;
 Maintain gross Non-Performing Assets (NPAs) below 1%;
 Consistently grow the loan book;
 Improve operational efficiency by consistently bringing down the cost to income
ratio.
A synonym for convenient and hassle-free service, HDFC's Training Centre, CHF
presents a unique focal point to hold training programmer.
Nature at its best...
CHF is located in the serene ambience of Lonavla, 2000 feet above sea level, 120 kms.
from Mumbai. The hills and valleys and scenic landscape make your training a unique
pleasurable experience, so much so you may even prefer having your sessions out in the
open lush green lawns.
Training & Human Resource Management...
HDFC, having pioneered and helped develop market-oriented housing finance in India,
has continued to expand its services to a broader spectrum of clients by offering
specialized training courses.

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HDFC’s Centre for Housing Finance (CHF) provides technical assistance to national
governments and housing finance institutions in developing countries in the South Asian
and African regions, especially in the field of institutional development for effective
shelter finance delivery.
The second major area of activity of the CHF is managerial training for housing finance
institutions. Besides effective housing finance operations, some established housing
finance institutions also seek training for systems development and improvement.
Technology adds value...
State-of-the-art technology at this Training Centre makes your training programmer come
alive. Overhead Projectors with remote control screen, multimedia projector, electronic
copy board & programmable lighting arrangements all make for a great learning
experience. Besides, you can bid farewell to the hiss, crackle and static of artificial audio
sounds. And welcome sound in its natural state thanks to the acoustic cushioning of the
Training Centre.
CHF is also well-equipped with computers, fax and photocopying facilities. A back-up
generator set provides uninterrupted power supply. Air conditioning systems ensure a
balanced climate here. Also our Syndicate rooms provide facilities for group work.
Service that makes you smile…
CHF… Offering you service when you need it the most. Ergonomically designed chairs,
with seating arrangements which are flexible to suit your requirements and refreshment
services at preferred timings make the experience complete and fulfilling in every
respect. A well-equipped Library, and above all, a caring and experienced staff who
understand your needs are what make CHF truly one of a kind. When you come to CHF,
rest assured that the only thing you would need to think about is your training. We'll take
care of the rest.

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The Residential Annexed…
The Residential Annex has seventeen well appointed rooms (individual balconies) for
single or double occupancy. Equipped with comforts like Cable T.V., Air Conditioning,
attached bathrooms and work space, these rooms make unwinding a rewarding
experience. Attached to The Residential Annexes, is the air-conditioned Dining Room
offering Chinese, Continental, Mughlai and South Indian cuisines.
The Lounge…
Detached from the Residential Annexes is the Lounge, situated in the most scenic
surroundings. Evenings here add that touch of excitement with barbecues. An occasion to
let your hair down.
Be a sport…
With over 6 acres of landscaped terrain, you could choose to go jogging, play basketball,
tennis, table tennis or simply take a long leisurely stroll through this magical locale.
The Customer's Voice…
We at CHF believe that the final word is always that of the customer. Summing up what
you can expect from CHF are the words of Mr. R. Sridhar (Managing Partner, Ogilvy
Consulting), who facilitated a workshop at CHF, "I was with a team of 15 people… at
CHF. As we entered, I could see at the gate that we were expected… as we entered the
Reception Area… the facility-in-charge personally welcomed us…. The facility was
wonderful… Everyone had a wonderful experience with the service. This is an excellent
example of 'being there when they need you the most'. The reason is simple. He (the
facility-in-charge) anticipated every need and fulfilled them before they arose."
Experience Counts…
Having conducted and organized several in-house and international workshops at CHF,
we understand what it takes to organize a successful training programmer. What's more,

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we have an ever-lengthening list of reputed corporate clients including ANZ Grindlays,
Bajaj Electricals Ltd. BASF India Ltd., Castrol India Ltd., Colgate-Palmolive India Ltd.,
Crompton Greaves India Ltd., HSBC Bank, Kirloskar Oil Engines, Kotak Mahindra
Finance Ltd., Otis Elevators, PepsiCo Holdings, Philips India Ltd., Stock Holding
Corporation of India Ltd., Telco Ltd., Wartsila NSD India Ltd., etc. All of whom have
held training programmers at CHF and returned enriched and fulfilled.
Over the years, delegates from several countries including Malaysia, Ghana, Mauritius,
Fiji Islands, Thailand, China, Sri Lanka, Bangladesh, Nepal, Indonesia, Mongolia,
Tanzania, Sultanate of Oman, Pakistan and Philippines have participated in training
programmer held at the Centre and benefited greatly.
Service at your doorstep…
Once you've decided on making your learning experience a memory to cherish forever,
just speak to us. And then, sit back and relax. We at CHF will take care of al your
ticketing and sight-seeing arrangements. What's more, as soon as you reach Lonavla,
your transport to and from the Centre is arranged for. Then you have the whole training
centre to yourself for the entire period of your training. And coming from HDFC, India's
premier housing finance institution, you couldn't expect anything short of the best. For us
at CHF… you matter.

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CHAPTER-III
REVIEW OF LITERATURE

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UNDERSTANDING RECRUITMENT PROCESS:
Recruitment is the phase, which immediately precedes selection. Its purpose is to pave
the -way for the selection procedures by producing, ideally, the smallest number of
candidates who appear to be capable either of performing the required tasks of the job
from the outset, or of developing the ability to do so within a-period of time acceptable to
the employing organization. The smallest number of potentially suitable candidates can in
theory, of course, be any number. The main point that needs to be made about the
recruitment task is that the employing organization should not waste time and money
examining the. Credentials of people whose qualifications do not match the
requirements of the job.
Apart from the methods used and the general administration of task, the achievement of
the objective will depend very much in the end on how efficiently the basic tasks of
manpower planning and job analysis have been carried out and applied. In short, efficient
recruitment of staff may be described as knowing what resources you want, what
resources are available, where and how they may be found.
The Objectives of Recruitment are:
 To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies
 To induct outsiders with a new perspective to lead the company
 To infuse fresh blood at all levels of the organization
 To develop an organizational culture that attracts competent people to the
Company
 To search or head hunt/ head pouch people whose skills fit the . company's values.
 To devise methodologies for assessing psychological traits
 To seek out non-conventional development grounds of talent
 To search for talent globally and not just within the company
 To design entry pay that competes on quality but not on quantum
 To anticipate and find people for positions that does not exist yet.

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Merits of Centralized Recruitment:
 Average cost of recruitment per candidate/unit should be relatively less due to
economies of scale
 It would have more expertise available to use
 It can ensure board unifonnity among human resources of various units/zones in
respect of education, skill, knowledge, talent etc.,
 It would generally be above malpractices, abuse of powers, favoritism, bias etc.,
Merits of Decentralized Recruitment:
 The unit concerned concentrates only on those sources/places where it normally
gets the suitable candidates. As such, the cost of recruitment would be relatively
less.
 The unit gets the most suitable candidates as it is well aware of the requirements
of the jobs regarding cultural, traditional, family background aspects, local
factors, social factors etc.,
 Units can recruit candidates as and when they are required without any delay.

38. 38

39. 39
The different kinds of internal sources are:
(a) Present permanent employees:
Organizations consider the candidates from this source for higher-level jobs due to
availability of most suitable candidates for jobs relatively or equally to the external
source, to meet the trade union demands and due to the policy of the organization to
motivate the present employees.
(b) Present temporary/casual employees:
Organizations find this source to fill the vacancies relatively at the lower level owning to
the availability of suitable candidates or trade union pressures or in order to motivate
them on the present job.
(c) Retired employees:
., Generally, particular organizations retrench the employees due to lack of work. The
organization takes the candidates for employment from the retrenched employees due to
obligation, trade union pressure and so on. Sometimes, the organizations prefer to re-
employ their retired employees as a token of their loyalty to the organization or to
postpone some internal conflicts for promotion.
External sources:
External sources are sources outside organizational pursuits. Organizations
search for the required candidates from these sources for the following
reasons:
 The suitable candidates with skill, knowledge, talent etc., are generally available.
 Candidates can be selected without any pre-conceived notion or reservations.

40. 40
 Cost of employees can be minimized because employees selected from this source
are generally organization.
 Human resources mix can be balanced with different background, experience,
skills etc.,
 Latest knowledge, skill, innovative or creative talent can also be flowed into the
organization.
 Existing sources will also broaden their personality
 Long run benefit to the organization in the sense that qualitative human resources
can be brought. Placed in the minimum pay scale.
Different kinds of External sources are:
(a) Campus recruitment:
Different types of organizations like industries, business firms, service organizations,
social or religious organizations can get fresh candidates for different types of jobs from
various educational institutions like collages and universities imparting education in
science, commerce, arts, engineering and technology, agriculture, medicine, management
studies etc.,
(b) Private employment agencies/consultants:
Public employment agencies or consultants like ABC consultants in India perform
recruitment functions on behalf of a client company by charging fees. Line managers are
relieved from recruitment functions so that they can concentrate on their operational
activities and recruitment functions are entrusted to a private agency or consultants.
(C) Professional associates;
Professional organizations or associates maintain complete bio-data of their members and
provide the same to various organizations on requisition. They also act as exchange
between their members and recruiting firms in exchanging information, clarifying doubts
etc. organizations find this source more useful to recruit the experienced and professional
employees like executives, managers, engineers.

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MODERN METHODS OF RECRUITMENT:
A number of modem recruitment sources are being used by the corporate sector in
addition to traditional sources. The sources are divided into internal and external sources.
Internal sources:
(a) Employee referrals:
Present employees are well aware of the qualifications, attitudes, experience and
emotions of their friends and relatives. They are also aware of the job requirements and
organizational culture of their company. As such, they can make preliminary judgments
regarding the match between the job and their friends or relatives. Hence, the HR
Managers of the company depend on the present employees for reference of the
candidates for various jobs. This source reduces the cost and the time required for
recruitment. Further this source enhances the effectiveness of recruitment.
External sources:
(a) Walk in interviews and tests:
The busy and rapidly changing organizations do not find time to perform various
functions of recruitment. Therefore, they advice the potential candidates to attend for an
interview directly and without a prior application on specified date, time and at a
specified place.
(b) Consult in:
The busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable
candidates from among such candidates through the selection process.
(c) E-Recruitment:
The technological revolution in telecommunications helped the organizations to use
Internet as a source of recruitment. Organizations advertise the job vacancies through the

42. 42
world wide web (www). The job seekers send their applications through e-mail using
Internet. Alternatively job seekers place their CV's in the worldwide web/ Internet, which
can be drawn by the prospective employers depending upon their requirements. For eg:
Monsterindia.com, timesjobs.com, naukri.com, Chckjobs.com
(d) Outsourcing:
Some organizations recently started developing human resources pool by employing the
candidates for them. These organizations do not utilize the human resources instead they
supply HRs to various companies based on their needs on temporary or ad-hoc basis.
Various companies, rather than employing HRs draw HRs from these organizations on
commission basis.
UNDERSTANDING SELECTION PROCESS:
Recruitment function helps the organization to develop a pool of prospective human
resources. It is difficult for the HR manager to employ the suitable people out of the pool.
In fact, many organizations face critical problems in choosing the people. Selection
techniques and methods reduce the complexities in choosing the right candidates for the
job.
After identifying the sources of human resources, searching for prospective employees
and stimulating them to apply for jobs in an Organization, the management has to
perform the function of selecting the right employees at the right time. The obvious
guiding policy in selection is the intention to choose the best qualifies and suitable job
candidate for each unfilled job.
The objective of the selection decision is to choose the individual who can most
successfully perform the job from the pool of qualified candidates. The selection
procedure is the system of functions and devices adopted in a given company to ascertain
whether the candidate's specifications are matched with the job specifications and
requirements or not.
The selection process can be successful if the following requirements are satisfied:

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 Someone should have the authority to select. This authority comes from the
employment requisition, as developed by an analysis to the workload and work
force.
 There must be some standard of personnel with which a prospective employee
may be compared, i.e. a comprehensive job description and job specification
should be available before hand.
 There must be a sufficient number of applicants from whom the '' required
number of employees may be selected.
Selection of personnel to man the organization is a crucial, complex and continuing
function. The ability of an organization to attain its goal effectively and to develop in a
dynamic environment largely depends upon the effectiveness of its selection programmer.
If the right person is selected, he is valuable asset to the organization.

44. 44

45. 45
SELECTION PROCEDURE:
Selection procedure employs several methods of collecting information about the
candidate's qualifications, experience, physical and mental ability, nature and behavior,
knowledge and aptitude for judging whether a given applicant is suitable or not for the
job. Therefore the selection procedure is not a single act but is essentially a series of
methods or stages by which different types of information can be secured through various
selection techniques. At each step facts may come to light, which are useful for
comparison with the job requirement and employee specifications.
Steps in Scientific Selection Procedure:
 Job analysis
 Recruitment
 Application form
 Written examination
 Preliminary interview
 Business games
 Tests
 Final interview
 Medical examination
 Reference checks

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INDETAIL EXPLANATION:
(A) JOB ANALYSIS:
Job analysis is the basis for selecting the right candidates. Every organization should
finalize the job analysis, job. Description, job specification and employee specifications
before proceeding to the next step of selection.
(b) APPLICATION FORM;
Application form is also known as application blank. The techniques of application blank
are traditional and widely accepted for securing information from the prospective
candidates. It can also be used as a device to screen the candidates at the preliminary

47. 47
level. Many companies formulate their own style of application forms depending upon
the requirement of information based on the size of the company, nature of business
activities, type and level of the job etc. Information is generally required on the following
items in the application forms:
 Personal background information
 Educational qualifications
 Work experience
 Salary (drawing and expecting)
 Personal attainments including likes and dislikes
(c) WRITTEN EXAMINATION:
Organizations have to conduct written examination for the qualified candidates after they
are screened on the basis of the application blanks so as to measure the candidate's ability
in arithmetical calculations, to know the candidate's attitude towards the job, to measure
the candidate's aptitude, reasoning, knowledge in various disciplines, general knowledge
and English language
(d) PRELIMINARY INTERVIEW:
The preliminary interview is to solicit necessary information from the prospective
applications and to assess the applicant's suitability to the job. An assistant in the
personnel department may conduct this preliminary interview. The information thus
provided by the candidate may be related to the job or personal specifications regarding
education, experience, salary expectations, attitude towards job, age, physical appearance
and other requirements etc. Thus, preliminary interview is useful as a process of
eliminating the undesirable and unsuitable candidates. If a candidate satisfies the job
requirements regarding most of the areas, he may be selected for further process.
Preliminary interviews are short and known as stand up interviews or sizing up of the

48. 48
applicants or screening interviews. However, certain required amount of care is to be
taken to ensure that the desirable
(H) BUSINESS GAMES:
Business games are widely used as a selection technique for selecting management
trainees, executive trainees and managerial personnel at junior, middle and top
management positions. Business games help to evaluate the applicants in the areas of
decision-making, identifying the potentialities, handling the situations, problem-solving
skills, human relations skills etc. participants are placed in a hypothetical work situation
and are required to play the role situations in the game. The hypothesis is that the most
succe
ssful candidate in the game will be most successful one on the job.
(I) TESTS:
Psychological tests play a vital role in employee selection. A psychological test is
essentially an objective and standardized measure of sample of behavior from which
inferences about future behavior and performance of the candidate can be drawn.
Objectivity of tests refers to the validity and reliability of the instruments in measuring
the ability of the individuals. Objectivity provides equal opportunity to all the job seekers
without any discriminating against sex; caste etc. standardization of test refers to
uniformity of procedure in conducting the tests for all the candidates. Sample behavior
refers to the sample of the total behavior of the prospective employee on the job.

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Types of Psychological Tests
(I) Aptitude Tests:
(a) Intelligence Test (IQ)
(b) Emotional Quotient
(c) Skill Tests
(d) Mechanical Aptitude
(e) Psychometric Tests
(f) Clerical Aptitude Tests
Type of Test
(ii) Achievement Tests:
(a) Job Knowledge Test
(b) Work Sample Test
(iii) Situational Tests:
(a) Group discussions
(b) In Basket
(iv) Interest Test:
(v) Personality Tests:
(a) Objective Tests
(b) Protective Tests
(vi) Multi-Dimensional esting

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Types of test:
Tests are classified into six classes, each class is again divided into different types of
tests. They are:
APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a
given job if given adequate training. Aptitudes can be divided into general and mental
ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative
capacity etc. General aptitude test is of two types namely intelligence quotient (IQ) and
emotional quotient (EQ)
Clerical aptitude tests;
These types of tests measure specific capacities involved in office work. Items of this
tests include spelling, computation, comprehension, copying, word measuring etc.
ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something- as these tests are
concerned with what one has accomplished. These tests are more useful to measure the
value of a specific achievement when an organization wishes to employ experienced
candidates. These tests are classified into (a) job knowledge test and (b) work sample test.
SITUATIONAL TESTS: This test evaluates a candidate's in a similar life situation. In
this test the candidate is asked either to cope with the situation or solve clerical situations
of the job
(1) Group discussion (GD) :
This test is administered through the group discussion approach to solve a problem under
which candidates are observed in the areas of initiating, leading, proposing valuable
ideas, conciliating skills, oral communicating skills, coordinating and concluding skills.

51. 51
INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work, job,
occupations, hobbies and recreational activities. The purpose of this test is to find out
whether a candidate, is interested or disinterested in the
Job for which he is a candidate and to find out in which area of the job range/occupation
the candidate is interested. The assumption of this test is that there is a high correlation
between the interest of a candidate in a job and job success. Interest inventories are less
faked and they may not fluctuate after the age of 30.
MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent
upon globalization, competitiveness and the consequent customer-centered strategies.
Organization have to develop multidimensional testing in order to find out whether the
candidates possess a variety of skills or not, candidate's ability to integrate the multi-skills
and potentiality to apply them based on situational and functional requirement.

52. 52

53. 53
PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure the
basic and non-job related information. The interaction between the candidate and the
personnel manager when the former meets the latter to enquire about the vacancies or
additional particulars in connection with the employment advertisement is an example of
the informal interview.
(2) Unstructured interview:
In this interview, the candidate is given the freedom to tell about himself by revealing his
knowledge on various items/areas, his background, expectations, interest etc. Similarly,
the interviewer also provides information on various items required by the candidate.
CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive
Or experts on various areas of job knowledge, skill, talent etc. This interview
May take various forms like:
(1) Back ground information interview:
This interview is intended to collect the information, which is not available inThe
application blank and to check that information provided in theApplication blank
regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes
and extra curricular activities of the applicant.

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(2) Job and probing interview:
This interview aims at testing the candidate's job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, methods of handling those areas etc.
(3) Stress interview
This interview aims at testing the candidate's job behavior and level of understanding
during the period of stress and strain. The interviewer tests candidate by putting him
under stress and strain by interrupting the applicant from:areas, keeping silent for unduly
long periods after he has finished speaking etc.
(4) Group discussion interview;
There are 2 methods of conducting group discussion interviews, viz. group interview
method and discussion interview method. All the candidates are brought into one room
and are interviewed one by one under group interview. This method helps a busy
executive to save valuable time and gives a fair account of the objectivity of the interview
to the candidates.
(5) Formal and structured interview:
In this type of interview, all the formalities, procedures like fixing the value, time, panel
of interviewers, opening and closing, intimating the candidates officially etc. are strictly
followed in arranging and conducting interview. The course of the interview is
preplanned and structured, in advance, depending on job requirements
(6) Panel interview:
A panel of experts interview each candidate, judges his performance individually and
prepares consolidated judgment. This type of interview is known as panel interview.
Interviewers for middle level and senior level mangers are normally conducted are the
panel of experts.

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DECISION-MAKING INTERVIEW:
After the experts including the line managers of the organization in the core areas of the
job examine the candidates, the head of the department/section concerned interviews the
candidates once again, mostly through informal discussion. The interviewer examines the
interest of the candidate in the job, organization, reaction/adaptability to the working
conditions, career planning, promotional opportunities, work adjustment and allotment
etc. The personnel manger also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc..
(K) MEDICAL EXAMINATION:
Certain jobs require certain physical qualities like clear, vision, perfect hearing unusual
stamina; tolerance of hardworking conditions, clear tone etc. Medical examination
reveals whether or not a candidate possesses these qualities. Medical examination can
give the following information:
 Whether the applicant is medically suited for the specific job
 Whether the applicant has health problems or psychological attitudes likely to
interfere with work efficiency or future attendance.
(L) REFERENCE CHECKS:
After completion of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the names
of references in their application forms. These references may be from the individuals
who are familiar with the candidate's academic achievement or form the applicant's
previous employer, who is well versed with the applicant's job performance, and
sometimes from co-workers.

56. 56
(M) FINAL DECISION BY THE LINE MANAGER:
The line manager concerned has to make the final decision whether to select or reject a
candidate after soliciting the required information through techniques discussed earlier.
The line manager has to take much care in taking the final decision not only because of
economic implications but also because of behavioral and social implications. A careless
decision of rejecting would impair the morale of the people and they would suspect the
selection procedure and the basis of selection of this organization. A true understanding
between line managers and personnel managers should be established to take proper
decisions.
(N) JOB OFFER:
Thus, after taking the final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the
successful candidates either immediately or after some time depending upon its time
schedule. The candidate after receiving job offer communicates his acceptance to the
offer or requests the company to modify the terms and conditions of employment or
rejects the offer.
(O) EMPLOYMENT:
The company may modify the terms and conditions of employment as requested by the
candidate. However the alteration is purely depends on the sole discretion of the
Management / company. The company employs those candidates who accept the job
offer with or without modification of terms and conditions of employment and place them
on the job.
With the employment of the candidate the recruitment and selection process is completed.

57. 57

58. 58
CHAPTER-IV
DATA ANALYSIS
&
INTERPRETATION

59. 59
Data Analysis
1 .By which method did you get recruited in to the organization?
------------------------------------------------------------------------------------------------
S. No Response ' No of Respondents Percentage
------------------------------------------------------------------------------------------------
1. Internal method 50 50%
2. External Method 50 50%
100 100
Interpretation
The above table shows that 50% of respondents were recruited by internal method and
remaining 50% by external method
0
10
20
30
40
50
60
INTERNAL METHOD EXTERNAL METHOD
RECUITED INTO ORGANIZATION
Series1

60. 60
2. If by internal method, by which method were you recruited?
------------------------------------------------------------------------------------------------
S. No Response No of Respondents Percentage
------------------------------------------------------------------------------------------------
1. Referred by employees 70 70%
2. Inter department transfer 20 20%
3. Promotion 10 10%
100 100%
------------------------------------------------------------------------------------------------
Interpretation
The percentage of usage of different internal methods of recruitment like employee
referrals, interdivisional and promotion followed by the organization is 70%, 20% and
10% respectively.
70%
20%
10%
1 2 3

61. 61
3. If by external method, by which method were you recruited?
------------------------------------------------------------------------------------------------
S. No Response No of Respondents Percentage
------------------------------------------------------------------------------------------------
1. HR Consultancy 25 25%
2. Newspaper 75 75%
100 100
------------------------------------------------------------------------------------------------
Interpretation
The information regarding the preference of the external methods of recruitment like HR
consultancy; Newspaper advertisements followed by the organization are 75% and 25%
respectively.
0
10
20
30
40
50
60
70
80
HR consultancyt paper advertisement
IF EXTERNAL

62. 62
4. After screening of application how did the organization approach you?-
S.No Response No of Respondents Percentage
1. Direct call for an interview 55 55%
2. Call to attend the test 15 15%
3. Direct appointment 30 30%
100 100%
Interpretation
The above table shows that 55% of respondents agreed direct call for an interview and
15% call to attend the test and the remaining 30% by direct appointment.
0
10
20
30
40
50
60
Direct call for an
interview
call to attend the test direct appointment
oragnizaton approach
Series1

63. 63
5. If called for test what kind of test did you appear for?
S.No Response No of Respondents Percentage
1. Technical Test 15 15%
2. Situation Test 15 15%
3. Subject Test 70 70
100 100%
Interpretation
The above table reveals that 15% of respondents attended technical test 15% of
respondents attended situation test and 70% of respondents appeared for subject test.
0
10
20
30
40
50
60
70
80
technical test situation test subject test
what kind of test appear

64. 64
6. If called for an interview what kind of interview did you face?
S.No Response No of Respondents Percentage
1. Formal Interview 75 75%
2 Boar interview 25 25%
100 100%
Interpretation
The table reveals that 75% respondents faced formal interview, and the remaining 25%
stress and board interview.
0
10
20
30
40
50
60
70
80
formal and structured interview board interview
what kind of interview faced

65. 65
7. How many rounds of interviews did you face?
S.No Response No of Respondents Percentage
1. HR Manager Round 20 25%
2. 3 Member Interview 20 25%
3. Head of dept 60 60%
100 100%
Interpretation
The above table reveals that 20%of respondents faced HR manager round 20% of
respondents faced 3-member committee and 60% respondents faced head of department
round
0
10
20
30
40
50
60
70
HR manager 3-member interview
committee
Head of the dept interview
how many rounds of interview

66. 66
8. Is the process of recruitment and selection satisfactory or dissatisfactory? S. No
Interpretation
The above table reveals that 20%of respondents faced HR manager round 20% of
respondents faced 3-member committee and 60% respondents faced head of department
round.
0
10
20
30
40
50
60
70
80
90
satisfactory dissatisfactory
Response No. Of Respondents Percentage
Satisfactory 80 80%
Dissatisfactory 20 20%
100 100

67. 67
(9) Rate the process of recruitment and selection in this organization?
(a) Excellent (b) Good
(c) Satisfactory (d) Not Satisfactory.
Interpretation
20% of the employees feel that the recruitment and selection process is excellent in
Lakshmi Hyundai. 50% of employees feel that the recruitment and selection process is
good, and 30% feel that the recruitment and selection process is satisfactory.
Rating the process of recruitment and selection
0
5
10
15
20
25
30
Excellent Good Satisfactory Not
satisfactory
No of Respondents
Group
Percentage
(%)
No of
Respondents
Excellent 20% 10
Good 50% 25
Satisfactory 30% 15
Not satisfactory 0% 0
Total 100 50

68. 68
(10) Which of the following attracted you to apply for the Job at Toyota?
(a)Decent salary (b) opportunities for growth
(c) Job security (d) Identification with the company
Group
Percentage
(%)
No of
Respondents
Decent salary 0% 0
Opportunities for growth 90% 45
Job security 10% 5
Identification with the company 0% 0
Total 100 50
Interpretation
90% of the employees feel that they are attracted to apply for the Job at Toyota
for having opportunities for growth and 5% for job security.
Reasons attracted to apply for job
0
5
10
15
20
25
30
35
40
45
50
Decent salary Opportunities
for growth
Job security Identification
with the
company
No of Respondents

69. 69
(11) In your view, which source is more reliable for the recruitment?
(a) Internal (b) External (c) mix of both.
Group
Percentage
(%)
No of
Respondents
Internal 10% 5
External 80% 40
Mix of both 10% 5
Total 100% 50
Interpretation
10% of the employees support for internal recruitment, 80% of employees support for
external and 10% of employees support for both.
Sources of recruitment
0
5
10
15
20
25
30
35
40
45
Internal External Mix of both
No of Respondents

70. 70
(12) Which of these was a part of your recruitment and selection process?
(a) Written test and interview (b) Group discussion and Interview
(c) Interview (d) All of the above.
Group
Percentage
(%)
No of
Respondents
Written test and interview 10% 5
Group discussion and interview 10% 5
Interview 10% 5
All of the above 70% 35
Total 100 50
Interpretation
10% of the employees are based on written test and interview
10% of the employees are based on Group discussion and interview
10% of the employees are based on Interview, 70% of the employees
based all.
.
Recruitment and selection process
0
5
10
15
20
25
30
35
40
Written test and
interview
Group discussion and
interview
Interview All of the above

71. 71
(13) During the interview process, what do you think is valued the most in Your profile?
(a) Qualification (b) Experience
(c) Personal traits (d) All the above
Group
Percentage
(%)
No of
Respondents
Qualification 20% 10
Experience 4% 2
Personal traits 4% 2
All of the above 72% 36
Total 100 50
Interpretation
20% of employees support for qualification,4% of employees support for
experience,4% of employees support for personal traits, 72% of employees
support for all.
Interview process
0
5
10
15
20
25
30
35
40
Qualification Experience Personal traits All of the above
No of Respondents

72. 72
14) What was the time taken for the entire recruitment and selection process?
(a) Within one week (b) within 2 weeks
(c) Within 3 weeks (d) more then 3 weeks
Group
Percentage
(%)
No of
Respondents
Within one weeks 10% 5
Within two weeks 20% 10
Within three weeks 30% 15
More then three weeks 40% 20
Total 100 50
Interpretation
10% Within one weeks ,20% Within two weeks,30%within three weeks ,40%
more than three weeks.
Time taken for the process
0
5
10
15
20
25
Within one weeksWithin two weeks Within three
weeks
More then three
weeks
No of Respondents

73. 73
(15) What kind of the interview did you undergo?
(a) Formal and structural interview
(b) Informal and unstructured interview
(c) Stress interview
(d) Board interview
Group
Percentage
(%)
No of
Respondents
Formal and structural
Interview 70% 35
Formal and unstructured
Interview 10% 5
Stress interview 2% 1
Board interview 18% 9
Total 100 50
Interpretation
70% Formal and structural Interview, 10% Formal and unstructured Interview 2%,
Stress interview, 18% Board interview.
Kind of the interview
0
5
10
15
20
25
30
35
40
Formal and
structural
Interview Formal and
unstructured
Interview

74. 74
(16) What is important for an employee before recruiting into the job?
(a) Communication (b) subject knowledge
(c) Both a & b (d) None of these
Group
Percentage
(%)
No of
Respondents
Communication 10% 5
Subject knowledge 10% 5
Both (a)&(b) 80% 40
None of these 0% 0
Total 100 50
Interpretation
10% of the employees should have communication silks,
10% of the employees should have subject knowledge,
80% of the employees should have both.
Employee before recruiting
0
5
10
15
20
25
30
35
40
45
Communication
Subject
knowledge
Both (a)&(b) None of these
No of Respondents

75. 75
(17) What are the reasons to apply in this organization?
(a) Company reputation (b) Job Security
(c) Good working conditions (d) opportunity for advancement.
Interpretation
20% of the employees support for good working conditions
80% of the employees support for none.
Reasons to apply in this organization
0
5
10
15
20
25
30
35
40
45
Company
reputation
Job security Good working
conditions
None of these
No of Respondents
Group
Percentage
(%)
No of
Respondents
Company reputation 0% 0
Job security 0% 0
Good working conditions 20% 10
None of these 80% 40
Total 100 50

76. 76
(18) Have you gone through the induction program?
(a) Yes (b) No
Group
Percentage
(%)
No of
Respondents
Yes 94% 47
No 6% 3
Total 100 50
Interpretation
94% of the employees gone through the induction program,
6% of the employees did not undergo induction program.
Induction program
0
5
10
15
20
25
30
35
40
45
50
Yes No
No of Respondents

77. 77
(19) What is the impact of induction in your work life?
(a) Excellent (b) Good
(c) Satisfactory (d) Not Satisfactory.
Group
Percentage
(%)
No of
Respondents
Excellent 10% 5
Good 70% 30
Satisfactory 20% 10
Not satisfactory 10% 5
Total 100 50
Interpretation
20% of the employees feel that the impact of induction in your work life is
excellent in HDFC stranded life. 70% of employees feel that the impact of induction in
your work life is good and 20% of employees feel that the impact of induction in your
work life is Satisfactory and 10% of the employees feel that the impact of induction in
your work life is not satisfactory.
Impact of induction in work life
0
5
10
15
20
25
30
35
Excellent Good Satisfactory Not satisfactory
No of Respondents

78. 78
CHAPTER-V
FINDINGS
SUGGESTIONS
CONCLUSION
BIBILOGRAPHY
QUESTIONNAIRE

79. 79
Findings
 50% of respondents were recruited by internal method and remaining 50%
by external methods.
 The percentage of usage of different internal methods of recruitment like
employee referrals, interdivisional and promotion followed by the organization is
70%, 20% and 10% respectively
 The information regarding the preference of the external methods of recruitment
like HR consultancy; Newspaper advertisements followed by the organization are
75% and 25% respectively.
 55% of respondents agreed direct call for an interview and 15% call to attend the
test and the remaining 30% by direct appointment
 15% of respondents attended technical test 15% of respondents attended siuation
test and 70% of respondents appeared for subject test.
 75% respondents faced formal interview, and the remaining 25% stress and board
interview
 20%of respondents faced HR manager round 20% of respondents faced 3-member
committee and 60% respondents faced head of department round.
 20%of respondents faced HR manager round 20% of respondents faced 3-member
committee and 60% respondents faced head of department round.

80. 80
Suggestions
1) While it is a fact that HDFC STANDARD LIFE INSURANCE is deploying a
good number of recruitment methods. What is important is that the traveling
public should further explore and install such recruitment methods, which go to
improve public handling methods especially by Marketing Executives. It is
suggested a sensitivity training method tailored to enable dealing with commuters
should be evolved in consultation with management experts and social
psychologists.
2) Employees who are on ‘long sick’, ‘or long absent’ should be included in the
recruitment need analysis. They should be directed to undergo training at the
training college. This is all the more important when it is realized that Work is
skill oriented and time on and off the job has its impact on the effectiveness or
otherwise of the working performance.
3) The top management should consider giving strict instructions to the management
to relieve the employees due for refresher recruitment as per the she duke drawn
up.
4) HDFC STANDARD LIFE INSURANCE is one of the important public utilities,
the requirements of the customers should be taken periodically and that they are
factored into the training programmers. This is all the more important that the
traveling public as a customer of the organization can always bank up on the
assistance and guidance of the consumer protection councils.

81. 81
Conclusion:
From the study, the following conclusions are arrived at:
 Depending on the job vacancy, job specifications and the appropriate source of
recruitment is chosen.
 Mostly, the internal source of recruitment is through employee referrals.
 It is the responsibility of the recruitment personnel to conduct the needed tests,
interviews etc.
 Most of the interviews that are conducted on the basis of depth interviews.
 Qualification, experience and personal traits are all important and play a vital role
in the selection of a candidate.
 Adequate manpower helps in recruitment process to fill the vacancies.
 Good interpersonal relationship is maintained by the employees and HR
personnel.
 Satisfied working conditions in the organization.
 Developmental needs of the employees are considered by the organization.

82. 82
BIBILOGRAPHY
Personnel Management C.B.Mamoria
Organization Behavior Aswathappa K.
Personnel/Human Resource Management P.Subba Rao &
V.S.P.Rao
Human Resources Management Pearson 9th
edition
Monday 2007
Web Sites Browsed
www. hdfcstandardlifeinsurance.com
www.hrindia.com
www.insurence.org.in

83. 83
QUESTIONNAIRE
Name:
Experience:
Department:
Designation:
—————————————————Please tick the appropriate box———•
Q.I. Did which method recruit you into the organization?
> Internal method [ ]
> External method [ ]
Q.2. If by internal method, by which method were you recruited?
> Referred by employees [ ]
> Referred by management [ ]
^ Inter department transfer [ ]
> Inter company transfer [ ]
Q.3. If by external method, by which method were you recruited?
> HR consultancy [ ]
> Campus recruitment [ ]
> Paper advertisement [ ]
> Employment exchange [ ]
> Direct applicant approach [ ]

84. 84
Q.4.After screening of the application how did the organization approach you?
> Direct call for an interview [ ]
> Call to attend the test ' [ ]
> Direct appointment [ ]
Q.5. If called for tests, what kind of test did u appear for?
> Technical test [ ]
> Aptitude test [ ]
> Psychological test [ ]
> Subject test [ ]
> Situation test [ ]
Q.6. If called for interview, what kind of interview did you face?
^ Formal and Structured interview [ ]
> Informal and Unstructured interview [ ]
> Stress interview [ ]
> Board interview [ ]
Q.7. How many rounds of interview did you face?
> HR manager [ ]
> 3-member interview committee [ ]
> Head of the dept interview [ ]

85. 85
Q.8. Is the process of recruitment and selection, satisfactory or dissatisfactory?
> Satisfactory [ ]
> Dissatisfactory [ ]
(9) Rate the process of recruitment and selection in this organization?
(a) Excellent (b) Good
(c) Satisfactory (d) Not Satisfactory.
(10) Which of the following attracted you to apply for the Job at Toyota?
(a)Decent salary (b) opportunities for growth
(c) Job security (d) Identification with the company
(11) In your view, which source is more reliable for the recruitment?
(a) Internal (b) External (c) mix of both.
(12) Which of these was a part of your recruitment and selection process?
(a) Written test and interview (b) Group discussion and Interview
(c) Interview (d) All of the above.
(13) During the interview process, what do you think is valued the most in
Your profile?
(a) Qualification (b) Experience
(c) Personal traits (d) All the above
14) What was the time taken for the entire recruitment and selection process?
(a) Within one week (b) within 2 weeks
(c) Within 3 weeks (d) more then 3 weeks
(15) What kind of the interview did you undergo?
(a) Formal and structural interview
(b) Informal and unstructured interview
(c) Stress interview
(d) Board interview

86. 86
(16) What is important for an employee before recruiting into the job?
(a) Communication (b) subject knowledge
(c) Both a & b (d) None of these
(17) What are the reasons to apply in this organization?
(a) Company reputation (b) Job Security
(c) Good working conditions (d) opportunity for advancement.
(18) Have you gone through the induction program?
(a) Yes (b) No
(19) What is the impact of induction in your work life?
(a) Excellent (b) Good
(c) Satisfactory (d) Not Satisfactory.
Q.20. If dissatisfactory, state the reasons for dissatisfaction?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________
__________________________________________________________________
Q.21. what measures do you suggest for effective recruitment and selection process?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________
__________________________________________________________________