Recruitment and Selection practices in HDFC Bank

Recruitment and Selection practices

In

Submitted By:

Aayush Arora (pgmf1601)

Ashay Jain (pgmf1611)
Eshita Singh (pgmf1616)
Luke Noronha (pgmf1624)
Utkarsh Kapur (pgmf1651)

Study Group 1

1|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

Objectives of study
 To understand the recruitment and selection procedure of HDFC Bank

 To understand the types of recruitment and selection process of HDFC

Bank

 To understand the satisfaction of managers and employees by current

recruitment and selection procedure

 To put forward points of improvements, if any

2|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

Abstract
Most employers recognize the fact that their staff is their greatest asset, and the
right Recruitment and induction processes are vital in ensuring that the new
employee becomes effective in the shortest time. The success of an organisation
depends on having the light number of staff, with the right skills and abilities.

During the study, the entire process of recruitment and selection is being focused.
This report provides a practical sense of how the process is done at HDFC Bank
and what are the different sources through which the bank hires employees. And
also how the bank looks for cultural fit.

The benefits of the study for the researcher is that it helped to gain knowledge
and experience and also provided the provided the opportunity to study and
understand the prevalent recruitment and selection procedures. A complete
interaction and enumeration of all the employees of HDFC Bank was not
possible so a sample was chosen that consisted of 10 employees.

3|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

About the industry

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. The central bank granted in-
principle approval to 11 payments banks and 10 small finance banks in FY 2015-
16. RBI’s new measures may go a long way in helping the restructuring of the
domestic banking industry.

About the company

The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive an ‘in principle’ approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector, as part of RBI’s liberalisation of the
Indian Banking Industry in 1994. The bank was incorporated in August 1994 in
the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January
1995.

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer

4|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

segments, and to achieve healthy growth in profitability, consistent with the

bank’s risk appetite.

Recruitment & Selection - Introduction

Recruitment:
The recruitment process includes analyzing the requirements of a job, attracting
employees to that job, screening and selecting applicants, hiring, and integrating
the new employee into the organization.

Selection:

Finding the interested candidates who have submitted their profiles for a
particular job is the process of recruitment, and choosing the best and most
suitable candidates among them is the process of selection. It results in
elimination of unsuitable candidates.

5|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

Literature Review
A bad credit history would not only reduce chances of getting a loan but also a
job in a bank. Some leading private and foreign banks in the country have started
checking scores of credit information companies such as Credit Information
Bureau Ltd (Cibil) as part of their pre-employment screening process.(Nupur
Anand & M Saraswathy,January 2015). The concept of innovative HRM evolved
in the early 1900s with an increased emphasis on a proactive, integrative and
value-driven approach to human resource management (Butler et al. 1991;
Schuler 1992). Best HRM practices are aimed to improve the overall performance
of employees within the organization which ultimately results in an increased
organizational performance through job satisfaction.(Delaney and Huselid
,1996).

6|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

Recruitment and Selection process at

HDFC Bank
Recruitment:
The Hiring Manager along with the Human Resource Department would decide
the channel/source to use based on the nature/source to use based on the nature
of recruitment. The following sources of recruitment are practiced in HDFC
Bank:
Internal Sources:
Whenever any vacancy arises, the possibility of fulfilling the requirement
internally via reassignment and relocation, re-allocation of the responsibilities
or internal promotions will be explored by the hiring function along with the
HR Department.

Employee Referrals:
HDFC Bank encourages employees to refer suitable candidates for open
positions
Other:
 Campus recruitment
 Requirement advertisements

Selection:
Application process:
All the applications are processed and the applicants are informed about the
status of the application.

7|Jaipuria Institute of Management ,NOIDA

Recruitment and Selection practices in HDFC Bank

Interview process:
This comes after applications are processed. Applicants are required to give
interviews for final results.

Pre-Employment check:
In this, professional reference check as well as background check is done.
HDFC checks from 2 references of the candidate.

Offer process:
After hiring, HR prepares compensation structure and grade.

Conclusion
 The managers are fully satisfied with the existing Recruitment and
Selection procedure

 HDFC has a very rigorous personal interview process to hire fit-for-culture

candidates

 To some extent a clear picture of required candidates should be made in

order to search for appropriate candidates

Recommendations
 Candidates should be kept on the job for some time period; if suitable they
should be recruited.

 During the selection process, the candidates should be made relaxed and at
ease.

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Recruitment and Selection practices in HDFC Bank

 Company should follow all the steps of recruitment and selection for the
selection of the candidates.

 Selection process should be less time consuming.

 The interview should not be boring, monotonous. It should be made

interesting.

 There must be proper communication between the interviewer and the

interviewees any the time of interview.

References
1) (Nupur Anand & M Saraswathy,January 2015) - http://www.business-
standard.com/article/finance/banks-now-check-credit-history-for-hiring-
too-115012000356_1.html
2) (Butler et al. 1991; Schuler 1992) -
http://www.ijera.com/papers/Vol6_issue3/Part%20-
%201/G6301040048.pdf
3) (Delaney and Huselid ,1996) -
http://www.macrothink.org/journal/index.php/ijhrs/article/viewFile/7765/
6539
4) (Somasroy Chakraborty & N Sundaresha Subramanian,March 2013)-
http://www.business-standard.com/article/finance/icici-bank-shuts-door-
on-ex-employees-113032900127_1.html
5) (Kermit Burley) - http://smallbusiness.chron.com/recruitment-selection-
affect-organization-structures-20904.html
6) (Kermit Burley) - http://smallbusiness.chron.com/recruitment-selection-
affect-organization-structures-20904.html

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Recruitment and Selection practices in HDFC Bank

Questionnaire
1. Does your organization plan the recruitment policy?
(a). Yes (b). No

2. What do you suggest should be the basis of forecasting?

(a). Total cost of project
(b). Past experience
(c). Different phases of project
(d). All of the above

3. Do you think the present recruitment policy is helpful in achieving the goals of
the
company?
( a). Yes (b) . No (c). To some extent

4. Through which source your organizations recruit the employees?

(a). Internally (b). Externally (c). Both

5. Which of the following external sources you choose for the recruitment of the
employees?
(a). Employee Exchanges Consultants
(b). Campus Requirements
(c). Advertisements
(d) . Any other

6. Do your organization recruit employees through latest method of recruitment

through
Internet: -
(a). Yes ( b). No

7. If yes then the company use own web site or this purpose.
(a). Yes ( b). No

8. Is Inter net recruitment is effective in your opinion?

(a). Yes (b). No

9. Is there any provision for recruitment of summer trainees?

(a). Yes (b). No (c). To some extent

10 | J a i p u r i a I n s t i t u t e o f M a n a g e m e n t , N O I D A
Recruitment and Selection practices in HDFC Bank

10. How much number of employees you train in a year?

(a). 5-10 (b). 10-15 (c) . 15& above

11. Is there any facility for absorbing the trainees in your organization?
(a). Yes (b). No

12. Which type of technique is used for interview?

(a). Structured (b). Unstructured (c). Both

11 | J a i p u r i a I n s t i t u t e o f M a n a g e m e n t , N O I D A