Summer Internship Report

On A STUDY OF PRODUCTS OF TATA-AIG LIFE INSURANCE COMPANY LIMITED AND ACCEPABLITY OF LIFE INSURANCE BY INDIAN CONSUMERS ACCORDING TO THEIR DEMOGRAPHIC CHARACTERSTICS By KRIPANSHU SHARMA 03310601809 BBA (B & I) Under the Supervision of Mrs. Swati Dham In Partial Fulfillment of Award of Bachelor of Business Administration ANSAL INSTITUTE OF TECHNOLOGY SECTOR 55, GURGAON.

CERTIFICATE

This is to certify that Kripanshu Sharma, student of Bachelor of Business Administration (Banking and Insurance) BBA (B & I), Ansal institute of technology, Indraprastha University has undertaken his summer internship at TATA-AIG Life Insurance Co. Ltd. From 20th June 2011 to 31st July 2011 and worked for the Project title Study of products of TATA- AIG Life Insurance Co. Ltd. and acceptability of life insurance among Indian consumers according to their demographic characteristics under my guidance.

This project report is prepared in partial fulfillment of degree of Bachelor of business Administration (BBA) to be awarded by Indraprastha University, Delhi. To the best of my knowledge, this piece of work is original and has not been submitted earlier to any institute/ university.

Mrs. Swati Dham Professor

ACKNOWLEDGMENT

The Summer Internship Program (SIP) undertaken by me at TATA-AIG Life Insurance Co. Ltd. was an extremely rewarding experience for me in terms of learning and industry exposure. I would like to express my deep gratitude towards Ms. Reena Malkani (Branch Manager) and Mrs. Monisa (Sales Manager) who always motivated me and helped me during the internship. I would like to sincerely thank the trainers, managers and advisors of the company who gave their valuable time & guidance in every step of my project and helped me in understanding various insurance plans of the company. Words are insufficient to express my gratitude towards my faculty guide Prof. Swati Dham who gave his valuable inputs in preparation of the report .She gave valuable time from this busy schedule to help me and guide me in right direction.

Kripanshu Sharma

DECLARATION

I hereby declare that the Summer Internship Report on Study of products of TATA- AIG Life Insurance Co. Ltd. and acceptability of life insurance among Indian consumers according to their demographic characteristics in TATA-AIG Life Insurance Co. Ltd. is the original work done by me. It has not been previously submitted, in part or full, by any other person.

Kripanshu Sharma BBA (B & I) Enrolment no.- 03310601809

Recruitment The use of career and job websites to advertise vacancies is growing. The availability of online recruitment advertising is encouraging companies to do it directly, bypassing the traditional recruitment agencies. Online job sites are quick, easy to use and inexpensive. Although these sites offer tools to assist in the shortlisting process, the key challenge still remains. The important point is to structure the advertisement to attract the right number of qualified candidates - not too many, not too few. This involves thinking about the employment market and the likely availability of suitable, interested candidates. The greater the availability, the more specific you can be with the wording of the advert. If you know what you want in terms of attributes, experience and background, and you are confident that you can attract people, be specific. It saves you time and doesnt unnecessarily raise the expectations of candidates. The objective is to attract a manageable number of high quality candidates.

Selection A job interview can be more than an interview. Skills can be tested just before or just after the actual interview, or even during the interview itself. In most positions, the ability to read and write is critical. It only takes a few minutes to have someone complete a task that demonstrates that they have the ability to match the position requirements. In the case of the manufacturing company mentioned above, they had to terminate a new employees employment. He could not do what he claimed he could. He was employed in a trade, but with the specific intention of operating a particular machine. At his interview, he claimed he had experience in the use of that machine. As everything else was in order, he was hired. It quickly became obvious that he did not have the necessary skills and experience and hence his services were terminated during the probationary period. This costly mistake could have been avoided. The selection process could have included some form of practical assessment. The best test would have been to actually set

up a job and run it on the machine. If that was not possible, standing next to the machine and asking specific questions about its operation would have quickly confirmed the level of existing knowledge. A number of "what if" questions would have shown his depth of understanding. When employing staff with a customer service role, I recommend running a quick role play during the interview. The candidate can demonstrate their customer relations skills.

Recruitment and selection essentials for companies and organisations

Derek Stockley explains some key points that guide team leaders and managers through the recruitment and selection process. Derek Stockley provides training, learning and performance management consulting services from his base in Melbourne, Victoria, Australia. Derek Stockley conducts a one day recruitment and selection course in Melbourne as well as inhouse training in job search and selection and interviewing.

I had an interesting discussion with the administration manager of a manufacturing company once. It exposed one simple step missing from the companys selection process. Recruitment and selection is a big topic, but I want to highlight what I believe are two organisations. Recruitment and selection success The 80/20 rule applies to recruitment and selection, that is, 20% of the effort produces 80% of the results. Various management attitude surveys make the point well:

critical

elements in

recruitment and selection processes for companies and

Question: Knowing what you now know, how many of your current employees would you re-employee?

Answer: About 60%

Poor employee performance costs Australian employers about $4.3 billion per year.* In team leader and management training programs I conduct, poor performance is one of the most common issues raised by participants.

A lot of aggravation could be avoided if the effort is placed on getting recruitment and selection processes operating smoothly. It is better to avoid performance problems. In summary, recruitment and selection success involves many critical elements, but two major ones are:

Attracting the right number of candidates through careful targeting of the recruitment advert.

Using a variety of methods in the selection process, including practical assessments and roleplays relevant to the position description.

Your personal review

If you are an employer, and knowing what you now know about your employees performance, how many of your existing staff would you rehire?

If you are an employee, and knowing what you now know about your colleagues abilities, how many of them would you hire?

Does your organisation attract quality candidates? Do your selection methods include activities that enable candidates to demonstrate their knowledge and abilities?

Are your processes superior to those achieved by your competitors?

Manpower Planning Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: 1. Analysing the current manpower inventory 2. Making future manpower forecasts 3. Developing employment programmes 4. Design training programmes

Steps in Manpower Planning 1. Analysing the current manpower

inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted

Type of organization Number of departments Number and quantity of such

departments

Employees in these work units these factors are registered by a

Once

manager, he goes for the future forecasting. 2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: a. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.

b. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. d. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. e. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. 3. Developing employment programmes- Once the current inventory accordingly, is compared which will with include future forecasts, the employment programmes can be framed and developed recruitment, selection procedures and placement plans. 4. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

1. Key

to

managerial

functions- The

four

managerial

functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. 2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. 3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. 4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and

development of the work force which leads to co-operation and better human relations. 5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration) Need of Manpower Planning Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: 1. Shortages and surpluses can be identified so that quick action can be taken wherever required. 2. All the recruitment and selection programmes are based on manpower planning. 3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. 4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents.

5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. 6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

Issues in recruitment and selection The tendency to employ people just like ourselves Selection panels should not seek applicants who will 'fit in' because of characteristics irrelevant to the job. Research suggests that panel members subconsciously, or sometimes consciously, appoint people most like themselves. It is important to be aware of our own fears and prejudices which can arise from lack of experience with, say people from a different ethnic background. Openly discussing the criteria for the job and challenging discrimination in all steps of the process is essential in employing the best person for the job. How people acquire and develop skills Value should not be placed only on a traditional career path. Skills gained through unpaid volunteer work, participation in local or community organisations or managing a family can also be

considered. Think broadly about how skills are developed and look for transferable skills. Assumptions about the length of time an applicant may stay in the job An applicant should not necessarily be disadvantaged by having gaps in their employment record, a history of part-time work, short term or volunteer work. Remember that childcare responsibilities still fall disproportionately on women and can be the cause of further discrimination in employment processes. Place value on different types of work Certain types of work should not necessarily be regarded as more valuable than others, for example childcare may, for certain positions, be as valuable an experience as paid work. Involvement in community organisations in a voluntary capacity builds many skills and competencies. Who defines what is merit? In the past, in a University context, merit has been defined by those people who had power. Their definition of merit rewarded unbroken service, overseas experience, a focus on research rather than teaching and it tended to benefit men over women. Perceptions, expectations, and requirements have changed, but all members of selection panels need to be vigilant to ensure that

the University in practice achieves the merit based selection it requires. Keeping up with current recruitment and selection practices Members of selection panels, however experienced, must be in touch with new practices and procedures. Following policy and procedures is a great protection and assists in making good decisions based on merit. In addition the Equity and Diversity Awareness Program is open to all staff and can assist you in understanding discrimination. your rights and obligations regarding

Recruitment Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retainprofessional recruiters or outsource some of the process to recruitment agencies. The recruitment industry has four main types of

agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and niche agencies which specialize in a particular area of staffing. Some organizations use employer

branding strategy and in-house recruitment instead of agencies. Recruitment-related functions are generally carried out by an organization's human resources staff. The stages in recruitment include sourcing candidates

by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based on the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively.

Main Recruitment Process Steps 7 Steps for Right Recruitment 1. Understanding the Requirement Make sure you have understood the requirement very well. You should not only look at the technical requirements but also try to understand the entire environment and situation of the vacancy. Why the vacancy is there? Is it a new vacancy or a replacement? If it is a replacement, what are reasons the previous employee on that position left the job or shifted or promoted? 2. Analyzing the position and team situation After understanding the requirement, make sure you analyze the team environment and situation where the vacancy is open. Figure out the size of the team one has to work with. For

example, if the team size of the position is 10 people, and if the incumbent has never worked in such team size, he wont be able to get adjusted easily. There are people who only gets adjusted with small teams and there are also professionals who can only work in big teams. This is the case with leading and management positions as well. If you try to hire a person who has led a team of 100 people and if he has to lead a team of only 5 people, there are always chances that he will be not satisfied and not get adjusted in the environment. One also needs to check what kind of person the incumbent has to work with. Who is his supervisor; what kind of attitude he has and so on. In most of the cases, the study has found that an employee leaves because of his supervisor. Ultimately, the supervisor is the person who deals with him directly!! 3. Sourcing the right person After analyzing the above two steps, now is the time to look for a right person. Match the technical skills, match the above two criteria and then call him for the interview. Salary is always an important criteria so never forget to match what he expects, what he has drawn, what is he drawing and what you can offer. 4. Gathering basic information Many recruiters find it silly to gather the basic information about the candidate. However, this is where they make a big mistake.

Basic information like

birth place,

current location,

family

background, marital status, hobbies etc. make a big difference. These are the details which can help a recruiter to figure out the candidate's current situation, his attitude, his hidden talents and skills and many more. For example, if you have sourced a candidate who is female, recently married; there are chances for her to ask for maternity leave and the organization has to suffer. If you have a candidate who is relocating himself from his native location to a distant place, there are chances that if he gets a good opportunity in his native, he will accept it and run away. Similarly, if you find out the hobbies of a candidate you can figure out little about his attitude. If a candidate has been a soccer player in past, he may prove to be a good team member. If he is tennis player, he may like to work independently and so on.. So next time you interview someone, make sure you gather the basic information. 5. Interviewing I will not discuss about the common things we ask while interviewing a candidate. Most of the recruiters or interviewers know what he has to check. But there are some other factors which need to be considered while interviewing. These are not the questions but hints we can get while interviewing.

Body Language Facial expressions Speech Attitude Habits

6. Presenting profiles to management It is very important for a recruiter to see how he is presenting the profile to the management. Once a recruiter has shortlisted one profile, he should wait for few more to get shortlisted. A recruiter should always give choices to the management and not just one resume. The management should have a chance to compare at least 3-4 profiles for a position. So make sure, you always present at least 3-4 resumes for a position to your management. 7. Recruiter as a sales person I always consider a recruiter as a sales person. He is actually selling jobs to a right candidate and again selling the right candidate to the management. The sales always include after sales service. Always make sure you update the candidates and management about the latest status and keep both of them updated and posted.

Factors Affecting Recruitment The recruitment function of the organisations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organisation. And the external factors are those factors which cannot be controlled by the organisation. The internal and external forces affecting recruitment function of an organisation are:

FACTORS

AFFECTING

RECRUITMENT

Purpose & Importance Of Recruitment

Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates for the organisation. Determine present and future requirements of the

organization in conjunction with its personnel planning and job analysis activities. Recruitment is the process which links the employers with the employees. Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates. Increase organization and individual effectiveness of various recruiting applicants techniques and sources for all types of job

Recruitment Process The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows: Identifying the vacancy:

The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: Posts Number Duties to Qualifications required to of be be filled persons performed

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees (Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

1. Identify vacancy

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and decision making The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.

Sources Of Recruitment Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal etc.) are sources known of as recruitment. the external Recruitment sources of candidates from all the other sources (like outsourcing agencies recruitment.

SOURCES

OF

RECRUITMENT

External Sources Of Recruitment 1.PRESS ADVERTISEMENTS Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.

2.EDUCATIONAL

INSTITUTES

Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is

known 3.PLACEMENT Several These private

as

Campus

Recruitment. AGENCIES

consultancy

firms

perform

recruitment

functions on behalf of client companies by charging a fee. agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing) 4. EMPLOYMENT EXCHANGES

Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates.

4. LABOUR

CONTRACTORS

Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs.

5. UNSOLICITED

APPLICANTS

Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the

daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organisation.

6. EMPLOYEE

REFERRALS

RECOMMENDATIONS

Many organisations have structured system where the current employees of the organisation can refer their friends and relatives for some position in their organisation. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.

7. RECRUITMENT

AT

FACTORY

GATE

Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Internal Sources Of Recruitment 1.TRANSFERS The employees are transferred from one department to another according to their efficiency and experience.

2.PROMOTIONS The employees are promoted from one department to another with more benefits and greater responsibility based on 3. Others efficiency are Upgrading according and and to experience. present

Demotion of their

employees

performance.

4. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organisations as the people are already aware of the organisational culture and the policies and procedures.

5. The dependents and relatives of Deceased employees and Disabled employeesare also done by many companies so that the members of the family do not become dependent on the mercy of others.

ADVANTAGES

DIS ADVANTAGES

Internal

Cheaper

and Limits the number of potential applicants

Recruitment quicker to recruit People familiar operates Provides opportunities

already No new ideas can be with the introduced from outside

business and how it the business

May cause resentment for amongst candidates

promotion with in not appointed the business can be motivating Business knows strengths weaknesses candidates External Outside people Longer process already Creates and be filled of another

the vacancy which needs to

Recruitment bring in new ideas Larger pool of More expensive process

workers from which due to to find the best candidate advertisements interviews required have range a Selection process may of not be effective enough to reveal the best candidate and

People wider

experience

Monitoring effectiveness As with any work activity it is recommended that the recruitment and induction process be reviewed for its effectiveness. If any stage of the recruitment process failed to produce the expected result, eg if the advertising method has produced too many candidates, you may want to examine what happened and why in order to make it more efficient in the future. Future recruitment exercises may require modifications to the methods used - a successful recruitment for one job does not automatically mean the same method will be as successful again. This is particularly true if the labour market changes, with, for instance, fewer school leavers but more mature workers being available. Recruitment and induction may be a continuous process in your organisation, necessitating more or less constant monitoring.

Monitoring regularly will also ensure equal opportunity policies are being actively pursued, and that internal candidates are receiving the same consideration as external candidates.

Selection Once the applicant has become a candidate, it means she has the requisite skills to warrant an investment of resources necessary to schedule, prepare and conduct an interview. These days interviews are one of the most important factors in the selection process because the recruiter and hiring manager are looking at more than what can the candidate do for the company. They are looking for soft skills the candidate may have in terms of building teams, working in collaboration with other professionals, and what the candidate can bring to the company that no other candidate can. Interviews may be one-on-one for administrative and support positions; however, candidates for management and director level positions can expect to be panel interviewed and judged on their capability to interact with a variety of personalities while presenting her qualifications in a manner that sells her capabilities to the prospective employer. Final Decision The final decision to extend an offer of employment should come from the employment section of the human resources department. While the hiring manager or directors involved in the interview process are ultimately the people to whom the

prospective employee will report, the employment specialists have the expertise and knowledge to process the final steps in the hiring process. There are employment laws that every employment specialist must follow--eligibility to work is one of the hottest topics in employment, particularly with visas, lotteries for work permits and permanent resident cards that validate a non-U.S. citizen's right to work in the U.S. Finally, the new employee's orientation, new hire documents and initial paperwork is provided by the employment specialists.

Barriers to effective selection - October 5th, 2010 Barriers to effective selection: The main objective of selection is to hire people having competence and commitment. This objective is often defeated because of certain barriers. The impediments which check effectiveness of selection are perception, fairness, reliability, and validity, pressure.

PERCEPTION: Our inability to understand others accurately is probably the most fundamental barrier to selecting right candidate. Selection demands an individual or a group to assess and compare the respective competencies of others, with the aim

of choosing the right persons for the jobs. But our views are highly personalized. We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people.

FAIRNESS: Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. But the low number of women and other less privileged sections of society in the middle and senior management positions and open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimize inequity have not been very effective.

VALIDITY: Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has been validated can differentiate between the employees who can perform well and those who will not. However, a validated test does not predict job success accurately. It can only increase possibility of success.

RELIABILITY: A reliable method is one which will produce consistent results when repeated in similar situations. Like a validated test, a reliable test may fall to predict job performance with precision.

PRESSURE: Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends, and peers to select particular candidate. Candidates selected because of compulsions are obviously not the right ones. Appointments to public sector undertakings generally take place under such pressure.

Employee Selection Process

Employee Selection is the process of putting right men on right job. It is a procedure of m

organizational requirements with the skills and qualifications of people. Effective selectio

done only when there is effective matching. By selecting best candidate for the required

organization will get quality performance of employees. Moreover, organization will face

absenteeism and employee turnover problems. By selecting right candidate for the requ

organization will also save time and money. Proper screening of candidates takes place selection procedure. All the potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of em

process. Recruitment is considered to be a positive process as it motivates more of can

apply for the job. It creates a pool of applicants. It is just sourcing of data. While selectio

negative process as the inappropriate candidates are rejected here. Recruitment preced

selection in staffing process. Selection involves choosing the best candidate with best a skills and knowledge for the required job. The Employee selection Process takes place in following order1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.

2. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc. 3. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased. 4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in room. There should be an honest communication between candidate and interviewer. 5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism. 6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

ICICI Bank

ICICI Bank Ltd. (NSE: ICICIBANK, BSE: 532174,NYSE: IBN) is India's second largest financial services company headquartered in Mumbai, India. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,533 branches and 6,800 ATMs in India, and has a presence in 19 countries, including India.[2] The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany.[3] ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange(NYSE).

Corporate history ICICI Bank was established in 1994 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 publicsector insurance companies to provide project financing to Indian industry.[4][5] The bank was initially known as theIndustrial 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 1994.[6] 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 NYSEin 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.[7]

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 Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.[8] 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.[9]

Corporate governance Group Anti Money Laundering Policy The ICICI Group AML Policy establishes the standards of AML compliance and is applicable to all activities.[10] Code of Conduct ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.[11]

Creation of market infrastructure in India ICICI Bank has contributed to set up different institutions which include the following: National Stock Exchange The National Stock Exchange was promoted by Indias 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.[12] 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.[13] National Commodities and Derivatives Exchange Limited NCDEX is a professionally managed online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.[14] Financial Innovation Network and Operations Pvt Ltd. ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved and underbanked population of the

country. Using cutting edge technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives in microfinance and livelihoods.[15] Entrepreneurship Development Institute of India Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Govt. of Gujarat as a national resource organisation committed to entrepreneurship development, education, training and research.[16] North Eastern Development Finance Corporation North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier financial and development institution for the North East region.[17] Asset Reconstruction Company India Limited Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery. This would relieve institutions and banks from

the burden of pursuing NPAs, and allow them to focus on core banking activities.[18][19] Credit Information Bureau of India Limited ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), Indias 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.[20] Corporate Social Responsibility programmes for Elementary Education Read to Lead Phase I Read to Lead is an initiative of ICICI Bank to facilitate access to elementary education for underprivileged children in the age group of 314 years including girls and tribal children from the remote rural areas. The Read to Lead initiative supports partner NGOs to design and implement programs that mobilise parent and community involvement in education, strengthen schools and enable children to enter and complete formal elementary education. Read to Lead has reached out to 100,000 children across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.[21]

Read to Lead Phase I is focused on

Bridge courses to support dropout children to re-enrol in formal education

Remedial coaching to potential dropout children to ensure their continuation in formal schooling

Educational kits that include uniforms, books, stationery, woollen clothes etc.

Inclusive and special education for children with special needs, such as mentally challenged and physically disabled children

Health and nutritional support for children Community initiatives for sensitisation on importance of education, including parent groups, school enrolment drives, workshops and seminars, and publications

Holistic development of children through instruction in arts and crafts, street plays, and life skills education

Read to Lead Phase II In Phase II of the Read to Lead programme, ICICI Bank has supported the establishment of 63 libraries that will reach out to approximately 7,200 children in the rural areas of Jagdalpur block of Bastar district in Chhattisgarh. The programme includes building libraries, sourcing books and conducting various interactive activities to make the library a dynamic centre for learning.[citation needed]

Go Green Initiative The Go Green Initiative is an organisation wide initiative that moves beyond moving people, processes and customers to cost effective automated channels to build awareness and consciousness of our environment,our nation and our society.[22] Objective ICICI Banks Green initiatives range from Green offerings/incentives, Green engagement to Green communication with their customers.[23] Green products and services Instabanking It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches.[22] But you will be charged Rs 110 if you discontinue paper statements and go to branch to get a paper statement for loan etc. http://www.icicibank.com/service-charges/commonservice-charges.html Vehicle Finance As an initiative towards more environment friendly way of life, Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.[22]

Carbon Footprint Calculator Inputs include region, user input of the distance traveled in a particular medium of transport daily, electricity consumed per month and LPG cylinder/piped natural gas used per month. It calculates the net carbon footprint to create awareness and sensitize people about the environment.It also shows the world's and India's average carbon footprint. Subsidiaries Domestic

ICICI Lombard ICICI Prudential Life Insurance Company Limited ICICI Securities Limited ICICI Prudential Asset Management Company Limited ICICI Venture ICICI Home Finance ICICI direct.com ICICI Foundation

International

ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia LLC

Acquisitions

2005: Investitsionno-Kreditny Bank (IKB), a Russian bank 2007: Sangli Bank

2010: Bank of Rajasthan

Awards

2004: Best Bank in India Award presented by Euromoney Magazine[26] 2007: ICICI Bank has been conferred the Euromoney Award 2007 for the Best Bank in the Asia-Pacific Region[27]

2007: ICICI Bank wins the Excellence in Remittance Business award by The Asian Banker[28]

2009: ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking awards[29]

2011: ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report, second year in a row[30]

2011: ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 list.[31]

2011: ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories[32]

2011: ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress[33]

2011: For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league tables of the worlds most valuable brands by, The BrandFinance Banking 500[34]

2011: ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today[35]

2011: ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider'[36]

Controversy over debt recovery methods In 2010, then Finance Minister of India, Pranab Mukherjee, said that private sector lenders including ICICI Bank and HDFC Bank have reportedly violated RBI guidelines on engagement of agents to recover loans.[37] ICICI Bank has been in focus in recent years because of alleged harassment of customers by its recovery agents.

ICICI Bank was fined Rs. 55 lakh for hiring goons (known coloquially as "goondas") to recover a loan. Recovery agents had ,allegedly, forcibly dragged out a youth (who was not even the borrower) from the car, beaten him up with iron rods and left him bleeding as they drove away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of deficiency in service and unfair trade practice for breach of terms of contract of hire-purchase/loan agreement by seizing the vehicle illegally,""No civilised society governed by the rule of law can brook such kind of conduct" said Justice Kaleem, who was born in Laddhawala, Muzaffarnagar is the president of the consumer commission[38][39][40][41][42][43][44] Four ICICI loan employees arrested on theft charges in Punjab[45] ICICI Bank told to pay Rs. 1 lakh as compensation for using unlawful recovery methods.[46] RBI warns ICICI Bank for coercive methods to recover loans[47]

ICICI Bank drives customer to suicide - Four men including an employee of ICICI Bank booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide.[48] According to the suicide note they advised him, "If you cannot repay the bank loan, sell off your wife, your kids, yourself, sell everything at your home. Even then if you cannot not pay back the due amount, then it's better if you commit suicide."[49] India biggest private bank has compensated the life by money[50]

ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in carjackers to recover loans in Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The under cover report was executed by CNNIBN's Special Investigations Team from Mumbai, led by Ruksh Chatterji[51]

Family of Y. Yadaiah alleged that he was beaten to death by ICICI Banks recovery agents, for failing to pay the dues. Four persons were arrested in this case.[52]

A father while talking to Times of India, alleged that "ICICI Bank recovery agents visited his house and threatened his family. And his son Nikhil consumed poison because of the tension".[53]

Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed suicide by hanging. The suicide note stated that she was upset with the ill-treatment meted out by ICICI Bank's recovery agents and had thus decided to end her life.[54] In another case of a suicide it is alleged that goondas sent by ICICI Bank abused Himanshu and his wife in front of the entire residential colony before taking away his vehicle. Feeling frustrated and insulted, he reportedly committed suicide.[55]

C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted on his loan.They humiliated me no end. They ripped my shirt, shaved my moustache, cut my hair and gave electric shocks on my chest and even spat on my face" adds Murthy.[56]

A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent lawyer, Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also slapped him to force him. A manager of the ICICI Bank branch, Rakesh Mehta, along with four other employees were arrested.[57]

In a landmark case, Allahabad High Court had ordered registration of an FIR against ICICI Bank's branch manager, President, Chairman and Managing Director on a complaint of 75-year-old widow Prakash Kaur. She had complained that goondas were sent by the bank to harass her and forcibly took away her truck.[58] When the Supreme Court wanted to know about the procedure adopted by the Bank, ICICI Bank counsel said notice would be sent to a defaulter asking him either to pay the instalments or hand over the vehicle purchased on loan, failing which the agents would be asked to seize it. When the Bench pointed out that recovery or seizure could be done only legally, ICICI Bank counsel said, "If we have to go through the legal process it would be difficult to recover the instalments as there are millions of defaulters".[59]

Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter, the president of Consumer Disputes Redressal Forum said, "The fact leaves us aghast at the manner of functioning and goondaism in which the bank is involved for a petty amount of Rs 1,889... such attitude is deplorable and sends chills down the spine....The bank had

the option to recover dues through legal means. They have no legal right to snatch the vehicle in such a manner which amounts to robbery,". In this case recovery agents pointed a pistol at a defaulter when he tried to resist. ICICI bank argued that they had taken peaceful possession of the vehicle "after due intimation to the complainant as he was irregular in remitting the monthly instalments". But the court found out that the records proved otherwise.[60]

Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from his house and keeping him hostage in the Bank's premises.[61]

A Consumer Commission has asked ICICI Bank MD K V Kamath to appear before it in respect a complaint. A borrower on protesting against the forceful dispossession of his car, as seen in the post-incident photographs, was roughed up and sustained injuries.[62

Awards-2011 Awards 2011 2004 2010 2003 2009 2002 2008 2001 2007 2000 2006 1999 2005 1998

Erstwhile ICICI Ltd

ICICI Bank

Ms. Chanda Kochhar, Managing Director & CEO tops the list of "India's 50 Most Powerful Businesswomen ", by Fortune India

ICICI Bank was ranked 2nd in the Banking sector and 10th in the overall "BT 500 India's Most Valuable Companies", by Business Today

For the second consecutive year, ICICI Bank was ranked second in the "India's 50 Biggest Financial Companies" , in The BW REAL 500 by Business World

Ms.Chanda Kochhar, Managing Director & CEO was conferred with "Women of Power" award, by The Asian Business leadership Forum (ABLF)

Ms.Chanda Kochhar, Managing Director & CEO, was the first woman to be named as the "Business Leader of the Year", by The Economic Times

Ms.Chanda Kochhar, Managing Director & CEO was ranked 5th in the International list of "50 Most Powerful Women In Business", by Fortune. She was ranked 10th in 2010.

ICICI Bank tops the list of "Most Trusted Private Sector Bank" and ranks 10th in the list of "India's Most Trusted Service Brands" by Brand Equity, Most Trusted Brands 2011

Ms. Chanda Kochhar, Managing Director & CEO, was named among the 50 most influential in global finance by Bloomberg Markets magazine

Ms. Chanda Kochhar, Managing Director & CEO, featured in the Hall Of Fame of Most Powerful Women in Indian business by Business Today

Ms. Chanda Kochhar, Managing Director & CEO, was ranked 43rd in the Forbes list of Most Powerful Woman in the world

ICICI Bank received the Best Manpower Efficient Award amongst private sector banks by FICCI IBA ICICI Bank won the Best Local Bank Gold by Trade and Forfaiting Awards, UK

o o o

ICICI Bank was awarded The Asset Triple A Awards, Hongkong for:

Best Domestic Transaction Bank (India) For 6th consecutive year won the Best Domestic Trade Finance Bank (India) Best Domestic Cash Management Bank (India)

o o

Best e-Commerce Bank (India) Best SME Bank (India)

Ms. Chanda Kochhar, Managing Director & CEO, received the Global Leadership Award for her contribution to the US India commercial relationship

Ms. Chanda Kochhar, Managing Director & CEO, was named as one of the two best Indian CEOs in an annual poll conducted by Finance Asia magazine.

ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report 2011, second year in a row.

ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 list

Ms. Chanda Kochhar Managing Director & CEO, was conferred with the Transformational Business Leader of the Year , by All India Management Association (AIMA)

Ms. Chanda Kochhar, Managing Director & CEO, was ranked 17th in Fortune's 25 Most Powerful CEOs in Asia.

Ms. Chanda Kochhar, Managing Director & CEO, was ranked as the 5th most recognized and respected company leaders by American research firm, Penn Schoen Berland (PSB). The survey was conducted among 600 respondents from US, EU, Asia-Pacific and India in March

Ms. Chanda Kochhar Managing Director & CEO ranks 41 in the "50 Power List 2011", by India Today

Ms. Chanda Kochhar, Managing Director & CEO, awarded the Skoch Challenger Awards 2011, for Banking. The Skoch awards recognizes best practices in people, projects and institutions for inclusive growth

Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful professional women of the country , by India Today

ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories:

o o o o

"Best Financial Inclusion Initiative" (first prize) "Best Online Bank" ( runner up) "Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up)

ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress

For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league tables of the worlds most valuable brands by ,The BrandFinance Banking 500.

ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider'

ICICI Bank ranked second in the financial services sector in Business World's,"Most Respected Company Awards 2011"

ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today

Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank conferred with "Padma Bhushan"

Board of Directors Board Members | Board Committees | Director's Profiles -----------------------------------Board Members

Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan .................................................... Mr. Arvind Kumar ................................................. Mr. M.S. Ramachandran .................................................. Dr. Tushaar Shah .................................................. Mr. V. Sridar

Ms. Chanda Kochhar, Managing Director & CEO

......................................................... Mr. N. S. Kannan, Executive Director & CFO

......................................................... Mr. K. Ramkumar, Executive Director

......................................................... Mr. Rajiv Sabharwal, Executive Director

Competition Name Last Price Market Cap. (Rs. cr.) HDFC Bank ICICI Bank Axis Bank Kotak Mahindra IndusInd Bank YES BANK Federal Bank ING Vysya Bank Karur Vysya JK Bank South Ind Bk StanChart IDR City Union Bank Karnataka Bank Lakshmi Vilas DCB 471.40 110,167.83 821.00 1,049.50 502.35 261.55 293.65 390.70 320.10 378.45 817.25 23.00 81.55 44.00 94,607.93 43,283.77 37,105.96 12,202.94 10,308.46 6,682.83 4,795.15 4,056.24 3,961.85 2,599.26 1,957.20 1,789.54 Net Interest Income 19,928.21 3,926.39 25,974.05 5,151.38 15,154.81 3,388.49 4,303.56 3,589.36 4,041.74 4,052.03 2,694.06 2,217.69 3,713.13 2,446.01 1,218.41 818.18 577.32 727.13 587.08 318.65 415.59 615.20 292.56 277,352.61 406,233.67 242,713.37 50,850.66 45,635.85 59,007.00 51,456.37 39,013.98 28,224.84 50,508.15 32,820.21 Net Profit Total Assets

- 1,945,725.80 215.05 14,591.52

79.80 97.95 40.10

1,501.98 955.59 802.99

2,370.84 1,064.84 536.26

204.61 101.14 21.43

31,693.01 13,301.19 7,372.33

Dhanlaxmi Bank Goldman BEES

63.95

544.45

906.42

26.06

14,268.16

2,774.35

284.66

SWOT ANALYSIS STRENGTH R i g h t strategy for t h e right products. service S u p e r i o r vs.competitors. Great Brand Image P r o d u c t s h a v e r e q u i r e d accreditations. High degree of customer satisfaction. Good place to work L o w e r e n t Dedicated work force aiming at making along-term career inthe field. WEAKNESSES S o m e g ap s i n r ang e fo r certain sectors. Customer service staff needtraining. Processes and systems, etc res po nse time w i t h e f f i c i a n d effective service. c u s t o m e r

M a n a g e m e n t Sectoral growth isconstrained andcompetition for staff

c o v e r by

insufficient. levels

lowunemployment

BIBLIOGRAPHY Personnel management by K.V.Mishra, Aditya publishing house, Madras (1992). Chabra T.N, Principles and practices of management, Dhanpat Rai & co. Ltd, Delhi(2000) Practice of Human resource by Danny shield. Manuals from the bank. www.icicibank.com