Recruitment And Selection Study At Icici Bank (1) 2i1q1g

PROJECT REPORT ON “TO STUDY OF RECRUITMENT AND SELECTION PROCESS AT ICICI BANK”

Submitted in partial fulfillment of the requirements for award of Master of Business istration (Session: 2014 – 2016) UNDER THE GUIDANCE OF:

Kawaljeet Singh SUBMITTED BY:

Sonia Rana Roll no. 1411000238

Sikkim Manipal UniversitySTUDENT

DECLARATION

I Sonia rana , student Sikkim Manipal university, of the batch 2014- 2016 declare that I have completed my thesis on the topic “TO STUDY OF RECRUITMENT AND SELECTION PROCESS AT ICICI BANK”. The information submitted is true and original to the best of my knowledge.

DATE: ___________ SIGNATURE OF STUDENT_____________

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CERTIFICATE BY GUIDE

I, Sonia Rana, student of MBA (GENERAL) at Sikkim Manipal University of the batch 2014-2016 declare that my guide Mr. Kawaljeet Singh has approved the thesis, as a complete and final work requiring no further alterations on the topic “TO STUDY OF RECRUITMENT AND SELECTION PROCESS AT ICICI BANK”. While undergoing my thesis I was in regular with my guide and met him 6 times for discussing the progress of my thesis.

DATE: _____________ SIGNATURE OF GUIDE: _______________________,

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ACKNOWLEDGEMENT A training report is never the sole product of the person whose name appears on the cover. There is always help, guidance and suggestion of many in preparation of such a report. So it becomes my first duty to express my gratitude towards all of them. I would also like to express my gratitude to Mr. Kawaljeet Singh Faculty, at Sikkim Manipal University for her excellent guidance and help throughout the training period. I want to acknowledge the help provided by guide and friends. The precious inputs provided by them have helped in compiling this report. As well as I want to thank my friends and colleagues who helped me in this working. I express my deep-hearted thanks and gratitude to all of those who helped me in this Project.

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INDEX Executive Summary......................................................................................5 Chapter 1 Introduction...................................................................................6 Chapter 2 Objective and Scope....................................................................26 Chapter 3 Methodology...............................................................................28 Chapter 4 Data Collection............................................................................30 Chapter 5 Data Analysis .............................................................................45 Chapter 6 Recommendations.......................................................................56 Chapter 7 Conclusion...................................................................................59 Annexures ....................................................................................................61 Bibliography ...............................................................................................63

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EXECUTIVE SUMMARY

Adjusting the existing staff profile to the desired one is frequently a gradual process. As the older staff retires, new stall has to be recruited not only for replacement hut also to provide for any expansion in service. The recruitment and selection effort should be a systematic one and could involve the announcement of job vacancies. Such announcement should dearly state the desired qualifications of the new stall, such as academic background, previous work experience, and so forth, and should dearly describe the recruitment process. Transparency in the recruitment and selection process is important as this will set the standard far a new career at customs and curb the tendencies for favoritism and clientelism that often plague recruitment in the public sector! Public advertising of vacancies as well as participation in job fairs and visits to schools of higher learning are recommended to ensure that qualified people apply for the d job. In today's rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Selection is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best results. These caselets discuss the importance of having an effective recruitment and selection policy.

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CHAPTER – 1 INTRODUCTION

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CHAPTER – 1 INTRODUCTION INTRODUCTION Human resources are an increasingly broadening term that refers to managing "human capital," the people of an organization. The field has moved from a traditionally istrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in of 'human resources development', and can go beyond just organizations to the level of nations. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'. Corporate Management: In the very narrow context of corporate "human resources" management, there is a contrasting pull to reflect and require workplace diversity that echoes the diversity of a global customer base. Foreign language and culture skills, ingenuity, humor, and careful listening, are examples of traits that such programs typically require. It would appear that these evidence a general shift through the human capital point of view to an acknowledgment that human beings do contribute much more to a productive enterprise than "work": they bring their character, their ethics, their creativity, their social connections, and in some cases even their pets and children, and alter the character of a workplace. The term corporate culture is used to characterize such processes at the organizational level.

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The traditional but extremely narrow context of hiring, firing, and job description is considered a 20th century anachronism. Most corporate organizations that compete in the modern global economy have adopted a view of human capital that mirrors the modern consensus as above. Some of these, in turn, deprecate the term "human resources" as useless. Yet the term survives, and if related to `resourcefulness', has continued and emerging relevance to public policy. In general the abstractions of macro-economics treat it this way - as it characterizes no mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific human capital" as defined in macro-economics is the modern and correct definition of "human resources" and that this is inadequate to represent the contributions of "human resources" in any modern theory of political economy. Individual responses: In regard to how individuals respond to the changes in a labour market the following should be understood: 

Geographical spread – how far is the job from the individual? The distance to travel to work should be in line with the pay offered by the organization and the transportation and infrastructure of the area will also be an influencing factor in deciding who will apply for a post.

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Occupational structure – the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure namely craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).

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Generational difference –different age categories of employees have certain characteristics, for example their behavior and their expectations of the organization.

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Framework: Human Resources Development is a framework for the expansion of human capital within an organization or (in new approaches) a municipality, region, or nation. Human Resources is a combination of training and education, in a broad context of adequate health and employment policies that ensures the continual improvement and growth of the individual, the organization, and the national human resourcefulness. Adam Smith states, “The capacities of individuals depended on their access to education”. Human Resources Development is the medium that drives the process between training and learning in a broadly fostering environment. Human Resources Development is not a defined object, but a series of organized processes, “with a specific learning objective” Within a national context, it becomes a strategic approach to intersectoral linkages between health, education and employment. Structure: Recruitment and selection is the structure that allows for individual development, potentially satisfying the organizations, or the nation's goals. The development of the individual will benefit the individual, the organization, or the nation and its citizens. In the corporate vision, the Human Resources Development framework views employees, as an asset to the enterprise whose value will be enhanced by development, “Its primary focus is on growth and employee development…it emphasizes developing individual potential and skills” Human Resources Development in this treatment can be in-room group training, tertiary or vocational courses or mentoring and coaching by senior employees with the aim for a desired outcome that will develop the individual’s performance. At the level of a national strategy, it can be a broad intersectoral approach to fostering creative contributions to national productivity. Training: At the organizational level, a successful Human Resources program will prepare the individual to undertake a higher level of work, “organized learning over a given period of time, to provide the possibility of performance change”. In these settings, Human Resources 10

is the framework that focuses on the organizations competencies at the first stage, training, and then developing the employee, through education, to satisfy the organizations long-term needs and the individuals’ career goals and employee value to their present and future employers. Human Resources can be defined simply as developing the most important section of any business its human resource by, “attaining or upgrading the skills and attitudes of employees at all levels in order to maximize the effectiveness of the enterprise”. The people within an organization are its human resource. Human Resources from a business perspective is not entirely focused on the individual’s growth and development, “development occurs to enhance the organization's value, not solely for individual improvement. Individual education and development is a tool and a means to an end, not the end goal itself”. The broader concept of national and more strategic attention to the development of human resources is beginning to emerge as newly independent countries face strong competition for their skilled professionals and the accompanying brain-drain they experience. Recruitment: Employee recruitment forms a major part of an IT company's overall resourcing strategies which seek to identify and secure the people needed for the organization to survive and succeed in the short to medium-term. Recruitment activities need to be responsive to the ever-increasingly competitive market to secure suitably qualified and capable recruits at all levels. To be effective these initiatives need to include how and when to source the best recruits internally or externally. Common to the success of either are; well-defined organizational structures with sound job design, robust task and person specification and versatile selection processes, reward, employment relations and human resource policies, underpinned by a commitment for strong employer branding and employee engagement strategies. Internal recruitment can provide the most cost-effective source for recruits if the potential of the existing pool of employees has been enhanced through training, development and other performance-enhancing activities such as performance appraisal, succession planning and

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development centres to review performance and assess employee development needs and promotional potential. Increasingly, securing the best quality candidates for almost all small scale IT companies will rely, at least occasionally if not substantially, on external recruitment methods. Rapid changing business models demand skills of experiences which cannot be sourced or rapidly enough developed from the existing employee base. It would be unusual for an organization today to undertake all aspects of the recruitment process without from third-party dedicated recruitment firms. This may involve a range of services, such as; provision of CVs or resumes, identifying recruitment media, ment design and media placement for job vacancies, candidate response handling, short listing, conducting aptitude testing, preliminary interviews or reference and qualification verification. Typically, small IT companies may not have in-house resources or, in common with IT companies, may not possess the particular skill-set required to undertake a specific recruitment assignment. Where requirements are arise these will be referred on an adhoc basis to government job centres or commercially run employment agencies. Except in sectors where high-volume recruitment is the norm, an organization faced with an unexpected requirement for an unusually large number of new recruits at short notice will often hand over the task to a specialist external recruiter to manage the end-to-end resourcing program. Sourcing executive-level and senior management as well as the acquisition of scarce or ‘high-potential’ recruits has been a long-established market serviced by a wide range of ‘search and selection’ or ‘headhunting’ consultancies which typically form long-standing relationships with their client organizations. Finally, certain organizations with sophisticated HR practices have identified there is a strategic advantage in outsourcing complete responsibility for all workforce procurement to one or more thirdparty recruitment agencies or consultancies. In the most sophisticated of these arrangements the external recruitment services provider may not only physically locate, or ‘embed’, their resourcing team(s) within the client organization's offices but will work in tandem with the senior human resource management team in developing the longer-term HR resourcing strategy and plan.

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Modern concept of human resources: Though human resources have been part of business and organizations since the first days of agriculture, the modern concept of human resources began in reaction to the efficiency focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in of their psychology and fit with companies, rather than as interchangeable parts. This movement grew throughout the middle of the 20th century, placing emphasis on how leadership, cohesion, and loyalty played important roles in organizational success. Although this view was increasingly challenged by more quantitatively rigorous and less "soft" management techniques in the 1960s and beyond, human resources development had gained a permanent role within organizations, agencies and nations, increasingly as not only an academic discipline, but as a central theme in development policy. Objectives of Recruitment: Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it. The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organization. In this is competitive global world and increasing flexibility in the labour market, recruitment is becoming more and more important in every business. Therefore, recruitment serves as the first step in fulfilling the needs of organizations for a competitive, motivated

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and flexible human resource that can help achieve its objectives. Here at Naukrihub, they attempt to provide a detailed insight into the concept of recruitments, recruitment process and its sources, recent trends in recruitment, recruitment strategies and the scenario in the industry along with the career options for recruiters. Source of Recruitment: Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of the recruitment. Sources of Recruitment

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Advantage and disadvantage of Sources

Some Internal Sources of Recruitments are given below: 

Transfers: The employees are transferred from one department to another according to their efficiency and experience.

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Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.

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Others are Upgrading and Demotion of present employees according to their performance.

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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 organizations as the people are already aware of the organizational culture and the policies and procedures.

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

External sources of recruitment: 

Press ments: ments 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.

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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 as Campus Recruitment.

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Placement Agencies: Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing.

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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.

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Labor Contractors: Manual workers can be recruited through contractors who maintain close s with the sources of such workers. This source is used to recruit labor for construction jobs.

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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 organization.

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Employee Referrals / Recommendations: Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment 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.

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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.

Recruiters for schools across the country are making use of both historically successful and newer sources to fill current vacancies for SLPs and to identify potential employees for the future. These sources include: 

University programs

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Ads in local and national newspapers

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Networking with current staff and student teachers

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Recruitment agencies

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National, state, and local speech-language-hearing associations

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Job fairs

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Online links among all rural, urban, and suburban schools in given districts and via special

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COMPANY PROFILE ICICI bank:

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ICICI Bank is a major banking and financial services organization in India. It is the secondlargest bank by revenue, profit and assets (behind State Bank of India) and the largest private sector bank in India by market capitalization. The bank also has a network of 1,700+ branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries, as well

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some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and s in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings (CASA) ratio increased to 30% in 2008 from 25% in 2007. ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, ICICI Bank and HDFC Bank — its main competitors. History of ICICI bank:

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1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses.

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1994: ICICI established Banking Corporation as a banking subsidiary formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc.

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2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.

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2002: The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrated the group's financing and banking operations, both wholesale and retail, into a single entity. At the same time, ICICI started its international expansion by opening representative offices in New York and London. In India, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.

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2003: ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.

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2004: ICICI opened a representative office in Bangladesh to tap the extensive trade between that country, India and South Africa.

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2005: ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with $4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong.

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2006: ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur.

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2007: ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharshtra State, and which had 158 branches in Maharshtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. With respect to the international sphere, ICICI also received permission from the government of Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.

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2008: The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI also established a branch in Frankfurt.

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2009: ICICI made huge changes in its organization like elimination of loss making department and retrenching outsourced staff or renegotiate their charges in consequent to the recession. In addition to this, ICICI adopted a massive approach aims for cost control and cost cutting. In consequent of it, compensation to staff was not increased and no bonus declared for 2008-09.

Board of director 

Mr. N. Vagual ( chairman)

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              

Mr. Sridar iyengar Mr. Lakshami N. mittal Mr. Narendra murkumbi Mr. Anupam puri Mr. Arun ramanathan Mr. M.k. Sharma Mr. P.m. sinha Prog. Marti G. subrahmanyam Mr. T.S. Vijayam Mr. V.Prem wasta Mr. K.V. kamath (managing director & CEO) Mr. Chanda kochhar (t managing director) MR. V.Vaidyanathan (Executive director) Ms. Madhabi puri- buch (Executive director) Mr. Sonjog chatterjee (Executive director)

Vision and Mission:

Vision: To be the leading provider of financial services in India and a major global bank. Mission- we will leverage our people, speed, technology and financial capital to: 

Be the banker of the first choice for our customers by delivering high quality, world class products and service.

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Expand the frontiers of our business globally

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Play a proactive role in the full realization of India’s potential.

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Create value for our stakeholders

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Maintain high standards of the governance and ethics.

Organizational structure of ICICI bank ICICI bank’s organization structure is designed to be flexible and customer focused, while seeking to ensure effective control and supervision and consistency in standards across the organization and align all areas of operation to overall organizational objectives. The organizational structure is divided into six principal groups     

Retail banking Wholesale banking International banking Rural and agriculture banking Governmental banking Corporate center banking

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Retail banking Retail banking group is responsible for products and services for retail customers and small enterprise including various credit products, liability product and insurance product and transaction banking service. Wholesale banking The wholesale banking group is responsible for products and services for large and medium sized corporate clients, including credit and treasury product and investment banking. International banking International banking group is responsible for its international operation, including operations in various oversea markets as well as its products and services for non- resident Indian and correspondent banking relationship.

Rural and agriculture banking The rural, micro banking & agriculture banking group is responsible for envisioning and implementing rural banking strategy including agriculture banking and micro finance. Governmental banking The government banking group is responsible for government banking initiatives. Corporate center banking Corporate center comprise the internal control environment function; finance, human resitsces management, and facilities management and istration etc.

Product and services

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Banking ICICI bank offer a wide range of banking such as current, saving life plus senior, recurring deposit, young stars, salary etc. tailor made for every customer segments, from children to senior citizens. Young stars A special portal for children to learn banking basics, manage personal finance and have a lot of fun. 

Bank @ campus

This student banking service gives students access to their details at the click of a mouse. Plus the student gets a check books, debit card and annual statement. 

Saving

Convenience is the name of the game with ICICI bank’s saving . Whether it is a ATM /debit card, easy withdrawal, easy loan options or internet banking. ICICI bank’s saving always keeps you in touch of money. 

Fixed deposit

ICICI bank offers a range of deposit solutions to meet varying needs at every stage of life. Insurance The ICICI group offers a range of insurance products to cover varying needs ranging from life, pensions and health, to home, motor and travel insurance. The products are made accessible to customers through a wide network of advisors, banking partner, corporate agents and brokers with the added convenience of being able to buy online. 

Life insurance

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The ICICI group provides the many life insurance products through ICICI prudential life insurance company 

General insurance

The ICICI group provides the many general insurance products like motor, travel and home, insurance through ICICI Lombard general insurance company. Loans ICICI bank offers a range of deposits solutions to meet varying needs at every stage of life. 

Home loan

The number.1 home loan provider in the country. ICICI bank home loan offers some unbeatable benefits to its customers- doorstep service, simplified documentation and guidance throughout the process. 

Personal loan

ICICI bank personal loans are easy to get and absolutely hassle free. With minimum documentation you can secure a loan for a amount –upto Rs 15 lakhs. 

Vehicle loan

The NO.1 financial for car loans in the country. Network of more than 2500 channel partners in over 1000 locations. Tie- ups with all leading automobile manufactures to ensure the best deals. Controversy: ICICI Bank has been in focus in recent years because of alleged harassment of customers by its recovery agents. Listed below are some of the related news links: 

ICICI Bank was fined Rs. 55 lakh for hiring goons (known colloquially as "goodness") to recover a loan. Recovery agents had, allegedly, forcibly dragged out a

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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 of contract of hire-purchase/loan agreement by seizing the vehicle illegally,” No civilized society governed by the rule of law can brook such kind of conduct" said Justice J D Kapoor, president of the consumer commission. 

Four ICICI loan employees arrested on theft charges in Punjab

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ICICI Bank told to pay Rs. 1 lakh as compensation for using unlawful recovery methods.

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RBI warns ICICI Bank for coercive methods to recover loans

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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. 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." India biggest private bank has compensated the life by money

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

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

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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".

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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.

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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.

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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.

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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.

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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. 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".

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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

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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. 

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

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The credit card division of the ICICI Bank allegedly threatened a senior citizen in Chandigarh with a fictitious arrest warrant on of a default that never was.

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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.

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An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI Bank.

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There have been several other minor legal cases accusing harassment by ICICI Bank

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A consumer court imposed a t penalty of Rs. 25 lakh on ICICI Bank and American Express Bank for making unsolicited calls.

Corporate profile: ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,009 branches and about 5,219 29

ATMs in India and presence in 18 countries. ICICI Bank 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 and s in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently 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. Our UK subsidiary has established branches in Belgium and . 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). Awards: 

ICICI Bank wins the Asian Banker Award for Best Banking Security System



ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable global brand by BrandZ Top 100 Global Brands Report.



ICICI Bank has been ranked 1st in the term money category, from a list of 38 leading Banks by the German magazine, Euro. Since commencement of business two years ago in the German market, this is the 5th certification/award including 2 certifications from Stiftung warrenttest (for Savings and Term Deposits) and three "Best Bank" rankings by Euro magazine.



Forbes' 2000 most powerful listed companies' survey ranked ICICI Bank 4th among the Indian companies and 282nd globally.



ICICI Bank was awarded The Asian Banker Achievement Award 2009 for Cash Management in India.



The Economic Times-Corporate Dossier Annual Survey of India Inc's Most Powerful CEOs featured Ms Chanda Kochhar, MD and CEO, as the most powerful women CEO in India. She was ranked 13th in the overall power list.

30



ICICI Group Global Private Clients (GPC) has won the coveted 'Euromoney Private Banking Award 2010' for Best Bank in the Super-Affluent Category (USD 500,000 to USD 1 million) - India. The other categories in which GPC picked up awards were: o

Fixed Income Portfolio Management

o

Lending/Financing Solutions

o

Precious Metals Investment

o

Private Equity Investment

o

Specialized Services - Entrepreneurs

o

FX/Rates Derivatives Supplier



ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009



ICICI Bank won the second prize in the Six Sigma Excellence Awards, conducted by Indian Statistical institute, Bangalore for "Improving Sales for TV Banking business"



Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the "Pa Bhushan"

A leader in banking technology: ICICI Bank seeks to be at the forefront of technology usage in the financial services sector. Information technology is a strategic tool for business operations, providing the bank with a competitive advantage and improved productivity and efficiencies. All the bank’s IT initiatives are aimed at enhancing value, offering customer convenience, and improving service levels. ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank, with assets of USD 43 billion as of September 30,2005. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers

31

through a variety of delivery channels and through its specialized subsidiaries and s. Areas include investment banking, life and non-life insurance, venture capital, and asset management. Specifically, ICICI Bank is a leading player in the retail banking market and has over 14 million retail customer s. The bank has a network of 600 branches and extension counters and 2,060 ATMs. ICICI Bank is growing rapidly, in part through its online service offerings, and is considered a technology trendsetter in the Asian banking industry. A loyal Symantec customer for six years and counting: The bank set the stage for its technology ascendancy in 1999 when it consolidated its IT operations to a new data center in Mumbai. Pravir Vohra, Senior General Manager of ICICI Bank’s Technology Management Group, was a key decision maker in the planning for the new data center. “We took a hard look at the bank’s requirements well into the future,” he says. “High availability for our customer-facing applications was on the top of the list. If my customers cannot transact, nothing else matters. An outage can be highly detrimental to the bank’s reputation.” As a result, the bank’s internal applications needed to meet high availability requirements. And all banking data had to be protected and recovered in case of disaster. In building the bank’s Mumbai datacenter, Vohra looked first to establish relationships with suppliers that could solve a whole class of problems, not just those suppliers who offered point solutions. “To build a world- class infrastructure, we needed world-class software to manage our applications and storage,” explains Vohra. “We standardized on Symantec products for our data center because they have a well-deserved reputation as being best in class. Also, Symantec s all major platforms, so we can deploy a single set of tools across the entire infrastructure, simplifying istration and reducing training costs.” An additional decision factor was Symantec’s broad range of services, from consulting to onsite education. Targeting high availability for the end : To meet its datacenter availability goals, ICICI Bank runs its customer- facing services and key enterprise applications such as Finacle Core Banking (Infosys), FinnOne Retail Loans System (Nucleus Technologies), CTL Prime Credit Cards Processing System (Card Tech 32

Limited), and SAP on highly available servers. The data center has several Sun Fire 15K, E6900, E2900, and E6500 enterprise- class servers and various Sun Fire mid-range servers —25 in all— running the Solaris 9 Operating System. ICICI Bank deployed Oracle 9i database and Oracle Real Application Clusters (RAC) to provide a robust database component for its enterprise applications, while other applications such as Internet Banking and Customer Relationship Management use Microsoft SQL Server 2000 Enterprise Edition. The FlashSnap feature of Veritas Storage Foundation allows ICICI Bank to lower its total cost of ownership through more efficient use of its storage infrastructure. “The data for the Finacle application is stored on a new HP Storage Works XP 12000 disk array,” Vohra relates. “We make periodic point-in-time copies of the data so that we can restore the database in case there is a corruption. While the HP Storage Works XP 12000 disk array permits such internally via its native asynchronous data replication software, the FlashSnap option allows us to write copies of the data onto less expensive disk arrays from Hitachi or Sun. We avoid buying more storage hardware and get the most from our existing assets.” Investor Relations: ICICI Bank disseminates information on its operations and initiatives on a regular basis. The ICICI Bank website serves as a key investor awareness facility, allowing stakeholders to access information on ICICI Bank at their convenience. ICICI Bank's dedicated investor relations personnel play a proactive role in disseminating information to both analysts and investors and respond to specific queries.

33

CHAPTER – 2 OBJECTIVE AND SCOPE OF THE STUDY

34

CHAPTER – 2 OBJECTIVE AND SCOPE OF THE STUDY

OBJECTIVE OF THE STUDY: The main objectives of the study are as follows:1.

“To study the recruitment and Selection process in ICICI Bank.” and suggest the remedial measures.

2.

To find out the awareness about the Recruitment process and their working methodology.

3.

To understand candidates perceptions about behavior regarding the interview of any bank or any post, and also of Bank’s expectations, methodology for recruiting and selecting a candidate.

4.

To find and analyze the various factors contributing to changing the job.

5.

To evaluate the recruitment and selection process, methodology used at ICICI Bank.

35

SCOPE OF THE STUDY: My study will be confined to: 1.

All the employees of ICICI Bank, New Delhi.

2.

The study can be used for the further analysis and recommendations.

3.

The Bank executives can utilize the report for the purpose of financial management. HR policies and other strategic decisions.

4.

The company can use the report to undergo in the various deals related with the recruitment bank.

5.

Though every case has been taken to provide latest information, yet more information and improvement can be made in future.

6.

If the bank wants to establish new branch, then this report will give sufficient information to start HR Processes in organization.

36

CHAPTER – 3 METHODOLOGY

37

CHAPTER – 3 METHODOLOGY

Research methodology is the organized study of specific area of interest. It is a scientific procedure to study the specific issue start from the root cause of the aim of the study. The basic aim of this project to study Recruitment and Selection process and method used to motivate them at ICICI Bank. Data Collection Data constitute the subject matter of analysis. One cannot draw inference without analysis data. The relevancy, adequacy and reliability of data determine the quality of study. The entire scientific process of measurement, analysis, testing and inference Depends upon the availability of relevant and accurate data. Types of Data 1. Primary Data 2. Secondary Data Various Methods of Collecting Primary Data Is For obtaining the primary data for my project, I propose to use two research instruments. (a)Interview Method (b)Through Questionnaire (c)Through Structured Interviews, etc

Questionnaire

38

(i)

Sample Size:

(ii)

Sample Composition

25

Entry level employees,

15

Middle level employee

10

Structured Interviews (i)

Sample Size:

(ii)

Sample Composition

25

Entry level employees,

10

Middle level employee

15

Various Methods of Collecting Secondary Data Is I propose to get secondary data from: (a)

Data from company Intranet.

(b)

Previous data of recruitment process

(c)

Other websites available.

39

CHAPTER-4 DATA COLLECTION

40

CHAPTER-4 DATA COLLECTION

Recruitment and Selection: “The art of choosing men is not nearly as difficult as the art of enabling those one has chosen to attain their full worth”. Recruitment is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted in order to acquire new skills and promote organizational growth. Recruitment follows HR planning and goes hand in hand with selection process by which organizations evaluate the suitability of candidates. With successful recruiting to create a sizeable pool of candidates, even the most accurate selection system is of little use. Recruiting begins when a vacancy occurs and the recruiter receives authorization to fill it. The next step is careful examination of the job and enumeration of skills, abilities and experience needed to perform the job successfully. Other steps follow: 

Creating an applicant pool using internal or external methods



Evaluate candidates via selection



Convince the candidate



And finally make an offer

Scope: To define the process and flow of activities while recruiting, selecting and appointing personnel on the permanent rolls of an organization.

41

Authorization: S.No.

Authorized Signatory

1

Head- Human resource

2

Managing director

Amendments and deviations: Any amendments to and deviations from this policy can only be authorized by the Headhuman Resources and the Managing Director. Exclusions: The policy does not cover the detailed formalities involved after the candidate s the organization. Activity Flow: The organization philosophy should be kept in mind while formulating the recruitment procedure. The HR department would set the recruitment norms for the organization. However, the onus of effective implementation and compliance with the process rests with the heads of the respective functions and departments who are involved in the recruitment and selection process. The process is aimed at defining the series of activities that needs to be performed by different persons involved in the process of recruitment, the checks and control measures to be adopted and information that has to be captured. Recruitment and Selection is conducted by: 

HR & Branch Manager



Functional Head

42

Recruitment Planning: Recruitment planning on the basis of budget A. The manpower planning process for the year would commence with the company’s budgeting activity. The respective Functional heads would submit the manpower requirements of their respective functions/ departments to the board of Directors as part of the annual business plan after detailed discussion with the head of human Resource Function along with detailed notes in of the projected numbers assumptions regarding the direct and indirect salary costs for each position. B. A copy of the duly approved manpower plan would be forwarded by the HR department for their further actions during the course of the year. The annual budget would specify the manpower requirement of the entire organization, at different levels, in various functions/departments, at different geographical locations and the timing of the individual requirements. It would also specify the requirement budget, which is the cost allotted towards the recruitment of the budgeted staff and the replacement of the existing employees. The manpower plan would also clearly indicate the exact time at which the incumbent should be on board in such a way that the Regional HR has adequate notice for the time lapses involved in sourcing any other activities. C. The Regional HR’s would undertake the planning activity and necessary preparations in advance of the anticipated requirements, as monthly and quarterly activities on the basis of the approved budget, estimated separations and replacements therefore. D. The vacancies sought to be filled or being filled shall always be within the approved annual manpower budget and no recruitment process shall be initiated without the formal concurrence of the Head of the Regional HR under any circumstance. Head of the Regional HR shall also have the responsibility to monitor the appointments being considered at any point of time with specific respect to the duly approved manpower budgets.

43

Review of Manpower Plans and Additional Manpower A. Review of manpower budgets shall take place on a quarterly basis. In the event of any new position or any deviations to the original plans, details of the positions maybe forwarded to the VP-HR along with the adequate ing information. The recommendations would normally require a formal approval of the Managing Director. Alternately, VP-HR may record the summary of his discussion with the Managing Director and the MD’s approval on the recommendations, to signify the final decision taken regarding the recommendations. Sourcing Of Suitable Candidates Selection of Sources Regional HR would tap various sources/channels for getting the right candidate. Depending on the nature of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR would use any one multiple sources such as: 

Existing database (active application data bank);



Employee referral as per any company scheme that may be approved from time to time;



ment in the internet/newspapers/magazines/company’s sites/job sites or any other media;



Placement Agencies (particularly for positions of Managers and above);



Headhunting firms particularly for senior positions, specialist positions and critical positions;



Direct recruitment from campuses/academic institutes;



Job websites and

44



Any other appropriate sources.

The norms for using any of the sources are not water tight. Number of positions, criticality of positions and the urgency of the positions, confidentiality requirements, relative efficacy and cost considerations would play a role in the choice of the appropriate sourcing mechanism. ments: 

All recruitment ments (in any form and any medium) shall always conform to the KLI compliance norms and would not be released by any department or branch without the approval of the VP-HR. depending on the specifics of each position for which recruitment ments are to be released, Regional HR may obtain assistance from the company’s marketing department and/or any external advertising agencies for the preparation of the contents. Key features of the positions as notified by the Functional Heads would normally form a part of the ment text.



The media for releasing ment would depend on the level of the position being considered and the urgency of the requirements.



The ment mode that could be broadly specified as newspapers (local or mainline depending on requirements), internet sites and business magazines.

Placement Agencies/Headhunting Agencies 

Depending upon the vacancies, fresher fitting different description listed above may be recruited from time to time, from academic institutes of appropriate standards/reputation/grade,

in

the

requisite

numbers

and

at

the

compensation/stipend amounts to be formally approved of the VP-HR. Plans for such recruitment need specific special approval of VP-HR. norms regarding the identification of the appropriate institutes, constitution of the selection s, timings of the recruitment, number of candidates to be recruited into different positions, choice of the appropriate selection process and the tools thereof shall 45

be decided by the Head of the Regional HR in consultation with the VP-HR, depending on the specific features of the position. Screening the candidates First level screening The Candidates would be screened by the HR Manager/Branch Manager for the respective locations. Screening would be on the basis of the profile of the candidate and the departmental requirements. This assessment will be with respect to: a. The general profile of the candidate, b. Personality fit of the candidate into the profile, c. Aptitude/attitude of the candidate, d. Motives of the person to the company and whether focus is in the short term or is a long term player, e. Basic skill level on our set of requirements, say numerically ability, networking ability, etc f. Establish the annual guaranteed cash compensation of the individual and check whether the person would fit into the system. g. Explain the role of Sales manager to the applicant and check the acceptance of the candidate for the same. In case of need, the Regional HR may take a Tele interview of the candidate for further assessment process. Second Level Screening Aptitude Test

46

If the first assessment is positive, the candidates will give the aptitude test, once such test is selected approved by the company. The scoring, interpretation and the generation of interview probes from that test will also be done at this time. People who qualify the minimum criteria on this test will be put up on to the Functional Head (VP’s in case of HO) for functional assessment and suitability into the role. Tied Agency Sales Manager candidates short listed by the BM have will then take sales Aptitude test, once such a test is finalized. For the final selection, the regional Manager (Business Heads for HO) will meet the candidates short listed by the branch manager/VP. The chart specifying the Minimum approval level for each level of recruitment is specified below:

Category

Branch

Area

Business

Managing

Manager/Chief

Manager/AVP/VP Heads

Director

Yes

No

No

No

BIC

Yes

Yes

No

No

BM/CM

Yes

Yes

Yes

No

SM

Yes

Yes

Yes

Yes

Manager CSE/ADVISOR S

General Norms regarding interview Process: A. Interviews should consider the entire data provided by the candidate either through the formal CV or otherwise before coming to a conclusion about the candidate. They may insist on seeing the proof of the claims made by the candidate regarding qualifications, experience and other achievements. They may, at their discretion,

47

decide to meet the candidate on more than one occasion or to refer the candidate to another . B. Ratings on various attributes of the candidates shall be recorded in the interview evaluation sheet, soon after the interview is over. Along with these numerical ratings, qualitative observations about the candidate and overall decision regarding selection or otherwise (including a decision to defer the induction, referral to another , considering for another position) shall be forwarded to the associated Recruitment Manager/ Head of Regional HR. Individual have the option of appending their additional remarks/observations. No selection will be treated as final unless the IES form is filled comprehensively. Suitably appropriate IES formats may be created for specific positions. C. Any discrepancies noticed by the regarding the authenticity of the data provided by the candidate should be specifically and formally recorded on the IES form and suitably high lightened. D. Specific points to be probed during the reference check process, if any, must also be clearly recorded and high lightened on the IES forms. istrative Actions Regarding Interviews A. Scheduling and the venue of the interviews would be handled by the recruitment team in consultation with the short listed candidate and the selection , after taking mutual convenience into . For field positions, respective branch/regional heads would undertake this co-ordination. B. After the final round, if the candidate is selected, the complete set of papers Personal Data Form, CV, job requisition no., Interview evaluation sheet ,reference check details, educational details, along with the interviewer’s recommendations and Reference check form should be forwarded by the recruitment managers to recruitment head. Fitment of the candidate into a grade and compensation fitment shall be on the assumption of authenticity of the information provided in the CV/application form. 48

C. An appropriate formal communication shall be sent to the candidate whose candidature is not being taken forward, or details of the verbal/telephonic communications provided to the candidate shall be recorded on the candidates papers, by the recruitment team/associated line managers. In the case of interviews taking place at the branch/regional levels, similar noting should be recorded on the individual candidate’s papers. Negotiations of the and conditions and other pre-appointment formalities: A. In the case of sales-Tied Agency functions, the branch managers will be allowed to fix the salary and grade of the incoming sales manager, provided the compensation does not exceed 20% of the candidates current cash salary. Any fitment beyond this norms will need the approval of Head-HR. HR will forward a worksheet to the BM’s to evaluate the appropriate cash CTC of the incumbent. For all other functions, the compensation and grade would be fixed post a discussion between the Head of the Regional HR and the associated AVP/VP. Any candidate being offered a CTC of more than 4lacs will need the sign off from HEAD-HR. In appropriate cases, at the discretion of the VP-HR, a deviation may be referred to the Managing Director, for the MD’s formal approval. B. Responsibility for negotiations and finalization of the shall rest with the best Branch Manager/Associated Manager. They may seek the assistance of the recruitment managers, whenever required. Reference checks process should not normally be initiated unless the candidate has indicated his firm acceptance of the offer being made by us. Reference checks A.

Normal, reference checks should be undertaken with at least one reference. A second reference check will be done if considered necessary. Responsible officials from the former employers, academic institutes and/or any other eminent personalities can be considered as appropriate references. Close relatives and friends cannot be considered as references. Wherever feasible and considered appropriate, a

49

reference should be made with a senior official of the candidate’s current employer. In case the candidate is currently un-employed, reference should be made with the latest employer. The format of reference check is to be used as a framework for conducting the process. B.

Where the minimum two reference checks are not possible (particularly with the current employer) or where there is a mixed response from different sources, the matter may be to the VP-HR for a final decision. Depending on the seniority and any other considerations about the positions, VP-HR would normally consult the functional head concerned, before coming to conclusions. Any candidate whose credentials are doubtful shall not be recruited.

C.

In case of recruitment of Management trainees, fresher and life advisors as sales Managers no reference checks will be required.

Employment offer letter A. When a recruitment Manager is fully satisfied about the selection of the right candidate and about completion of all the formalities connected with the appointment of candidate including requisite documentation, satisfactory reference check reports and medical fitness, he/she would forward the relevant papers listed below to the head of recruitment. 

Personal Data form



Employee requisition form duly filled by the regional Head/Branch Manager



Interview

evaluation

sheet

filled

by

the

regional

head/Branch

manager/interviewer with his/her comments. 

Latest and updated resume of the candidate



Photocopy of the appointment letter of the last employer or latest salary slip.



Employment details. 50



Two Professional references.



Language Proficiency.



Document check list for every grade is as follows:



Authorization Release Form.



Background check Form.



Highest Education certificate.



Highest Education marksheet.



1 Month Salary Slip of Current Employer.



1 Month Salary Slip of Last Employer.



Relieving Letter of last Employment.



Proof of Residence.



2 port Size Photograph.

Regional HR manager will take the signature of Head-HR on the employee requisition form and forward the papers to the employee service team for issuance of the offer letter. D. Employee services team will issue offer letter, to be signed by the National Recruitment Manager or Chief Manager-HR, and send the same to the concerned Branch Manager/ HR Manager. E. It would be the responsibility of the Branch Manager/HR Manager to ensure that the accepted copy of the offer letter is forwarded to the employee service team within a week of receipt of the offer letter. Till this letter is issued, the ‘offer’ has not taken place in formal sense. A copy of the offer letter shall be duly signed and returned to

51

the candidate. Candidate would be expected to fulfill various ing formalities, which are also formally communicated to him/her in the form of a checklist that is attached to the letter of offer. The Regional HR head shall have the overall responsibility and ability to maintain the templates of the offer letters and also for drafting of suitable non-standard to any specific candidate. F. The employee service team will follow up Branch Manager/Regional HR Manager for the ing of the candidate and will collect all relevant documents from the candidate including the ing report, before issuing the appointment letter. The employee service team may enlist the help of the Branch Manager to ensure that all necessary documents within ten days o the person ing. After all necessary documents, the employee service team will send the appointment letter to the new ee. G. Once the documentation is complete for the new ee (including the accepted appointment letter), people who may have ed before 20th of the month but have not been included in the payroll for the month because of delay in receipt of papers will be given ad-hoc salary advance (up to maximum of 65% of the pro rated salary). This advance will be adjusted once the person gets included in the subsequent month’s payroll. H. If the person does not submit the relieving letter from the previous organization, where required to be submitted as per the table given above, within three months of ing, the employee service manager can put their salary on hold till such time as the said documents are received. Key tasks of Regional HR Head Regional HR Head will have the authority and responsibility to ister/implement the recruitment and selection process as outlined. An illustrative list of the key deliverables of these incumbents is listed below. 

Ensuring inductions as per quality, numbers, time and cost consideration of the company in accordance with the approved manpower budget. 52



Creation of appropriate sourcing mechanism along with tracking the performance of these mechanisms.



Creation of quarterly and monthly recruitment plans



Effective coordination with external parties such as candidates, placement agencies, consultants, academic/professional institutes and any other including the custody of the formal agreements , tracking timely payments and adjusted thereto



Creation of comprehensive and appropriate tools, linkages, documents, templates and any other mechanisms to ensure smooth execution of the process requirement, along with timely improvements thereto



Assistance

to



department

and

line

managers

including

in

interviewing/selection , scheduling etc. 

Effective internal communication with departments and line managers including making the standard recruitment formats and other templates easily available to such s and notifying the modifications to such formats and templates.



Creation and maintenance of qualitative information base regarding candidates, placement agencies, campuses, institutes, and any other employment-market information.



Creation and maintenance of appropriate and high-quality MIS for current and future needs of the organization, including publication/circulation of appropriate reports there from to the relevant s within the company.



Monitoring recruitment costs



Complete documentation for the entire recruitment and selection process for easy and quick retrieval in a readily auditable format

53



Timely and effective communication with all internal and external parties including the candidates



Tracking the progress of the selected candidates including resignation, extensions of probation periods/training period, etc for the purpose of improvement to recruitment and selection process.



Effective coordination with the post recruitment arm of the Human Resource function



Documentation and creating MIS regarding waiver, deviation, etc and identifying the key areas for improvement in the formal recruitment and selection process document.

54

SWOT Analysis of ICICI Bank’s Recruitment Process Strengths

Weaknesses Pre assessment tests are costly.

Rigorous Pre-Hiring assessment tests to understand aptitude and personality of

Conversion of footfalls is low.

candidates.

Lengthy pre-offer formalities.

Proper reference checks to ensure that only

Huge employee turnover.

bonafide candidates are appointed. Adequate number of channel partners to generate footfalls for each location. Footfall MIS being maintained at each branch locally by .

55

Opportunities

Threats

Campus recruitments have huge potential

Increasing number of private players in

for fulfilling manpower requirements cost insurance sector creates ample choices, effectively.

frequent and easy mobility for employees.

Tie up with recruitment agencies on

Same channel partners are handling all

supplying fixed number of footfalls week insurance companies. This leads to same on week.

pool of candidates being circulated to all

Develop exclusive contract with channel partners. partners

to

meet

the

manpower

Increasing spill over as a candidate has

requirements.

more than one offer at the time of making a

Make blue form brief and to the point.

job shift. As the insurance industry is small, senior

Reduce turn around time of making an offer.

level candidates hesitate to meet HR of other companies for the fear of grapevine.

CHAPTER – 5 DATA ANALYSIS 56

57

CHAPTER – 5 DATA ANALYSIS 1. Working period in the organization Less than 2 years

20%

2 to less than 4 years

45%

4 to less than 6 years

30%

More than 6 years

5%

58

The above mentioned graph shows that 45% respondents are working in the organization from 2 years to less than 4 years and 5% respondents working in the organization more than 6 years. 2. Trend Analysis: On The basis of their Source of recruitment Ads/Jobs Sites

13%

Employee Referrals

13%

Consultants

33%

Direct

41%

59

The Source of recruitments that had maximum number of back outs is Direct with 41 % followed by consultants which is 33 %. ments and Employee Referrals are 13 % each.

3. Types of candidates Outstation Candidates

55%

Local Candidates

45%

60

4. Analysis based on the reasons given by the candidates for back out This analysis is based on the responses received after speaking to people who backed out during the last financial Year. The following Reasons were identified after analyzing the responses collected from respondents. Reason for Backout: The percentages have been calculated from the total number of people ed. Lengthy interview

10%

Delay in

23%

Better offer

27%

Brand issues

18%

Others

22%

61

This pie chart depicts that the maximum number of people are backing out as they have better offers in hand, followed by 23 % who backed out due to delay in giving . 13 % of them backed out as they were not happy to get associated with a Growing brand. Lengthy Interview process contributed t 10% of the back outs and the remaining 27 % had other reasons to back out. Most common reasons for back outs: Varied reasons can be attributed as to why a candidate back out, below are some of the common ones – 

Have in hand several offers and will decide on the one best offer



Developing cold feet at the last moment before submitting his/her resignation letter



HR/Line Manager convinced him/her to stay back



Was given a very good counter offer by employer so decided to stay back



Not serious about leaving current job, and attending interviews just because the opportunity was presented to him/her.



Learnt of the project which was not to his liking/preference/expectation and is not keen on ing



The final offer not up to his/her expectation



Did not agree with some of the clause(s) in the offer letter/appointment letter



His/her friends/s gave negative about the organization so decided not to



Required ing time not reasonable

62



See what offer he/she can get from the market to negotiate a better salary with existing employer Selection process took too long and has already accepted another offer

b) On the basis of their area of Stay: This analysis would help in knowing that from which region maximum number of people is backing out as there could be a possibility that outstation candidates are more prone to backing out. Repercussions & affects of backing out: 

Recruitment is an expensive activity. Every time a candidate backs out the recruitment process has to be initiated all over again.



Good amount of time and effort is wasted to find a new replacement and projects can and do get delayed and all these translates to revenue lost



But most important of all is the lost of client’s trust. This is non tangible and will have long term adverse affect vis-à-vis client vendor relationship.

63

5. The satisfaction of the candidates with the explanation of job profile provided by them 5 (Extremely Satisfied)

7%

4

18%

3

20%

2

40%

1 (Extremely Dissatisfied)

15%

The 15% respondents are extremely satisfied with explanation of job profile but 7% respondents are extremely dissatisfied with explanation of job profile.

6. The preference of selecting candidates

64

Experience

31%

Age

10%

Gender

5%

Educational Qualification

25%

Professional Qualification

29%

The above mentioned graph show that 31% respondents selecting the candidates on the basis of experience and 25% respondents selecting the candidates on the basis of education qualification.

7. Motivate and attract the candidate

65

Company Profile

10%

Job Profile

12%

Salary

27%

Facilities

25%

Designation

17%

Location

9%

According to 27% respondents they motivate and attract the candidates by salary.

8. Percentage of Backout 0-5%

30%

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6-10%

35%

11-20%

27%

More than 20%

8%

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9. The most important area for the improvement to minimize the back-out of the candidates. Initial Counseling

30%

Company Profile Description

26%

Breakup of Salary

20%

Job Profile Description

24%

According to the 30% respondent’s initial counseling is the most important area for improvement to minimize the back-out of the candidates.

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CHAPTER -6 RECOMMENDATIONS & SUGGESTIONS

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CHAPTER -6 RECOMMENDATIONS & SUGGESTIONS

Compress the "white space" in your hiring process. White Spaces are delays in hiring process that are unproductive, waste time, and virtually assure you'll lose talented candidates. Often the longest delays occur between critical selection events. For example, a recruiter may need several weeks to screen a few hundred resumes from the Web job boards, or candidates who make it through screening may wait weeks to interview with a hiring manager. Here at ICICI Bank, the delays occur when the outstation candidates are called for interviews at Regional branches like Delhi and Mumbai. Sometimes, because of busy schedule of senior managers and sometimes because of tight schedule of candidate, the interview has to be postponed. This delay could be minimized by scheduling interviews in the regional locations. It is recommended to reduce the turnaround time for the recruitment and selection process. It must be made mandatory for the candidates to take the test, filling up forms etc within the stipulated time, this will make sure that the candidates do not hold casual attitude and take the recruitment process more seriously. Additionally it can send across a positive image about the company. White space in recruitment can be compressed by the use of IT also. Technology (such as automated or Web-based tracking) is ideal for eliminating unnecessary steps and reducing delays. Tie up with more & more consultants from multiple segments Since the limited placement agencies are sourcing candidates to all insurance companies, there often comes the problem of duplication of data. Therefore it is recommended that more 70

and more consultants should be tied up from multiple segments to attract large pool of new and fresh talent.

Know what you're looking for in candidates It is observed that the candidates sourced by placement agencies and send for further rounds of interviews are rarely found suitable by the hiring managers. Therefore, in case there is need to utilize the service of a placement agency, then it is recommended that these placement agencies be given a well drafted job description and job specification. This can also be circulated to internal employees under the employee referral scheme. This will help people to get a clearer picture and provide for most suitable candidates. Reduce the pre offer formalities: Pre-offer documentation includes filling of a lengthy Blue form which includes all personal, educational and professional details of candidate. This is very time consuming and even after taking these details from candidate its not sure that offer will be made or not. This also becomes frustrating for the candidate sometimes. So, it is recommended that unnecessary details should not be asked before we make the final offer to the candidate. Blue form should be made consise. One size doesn’t fits all An effort must be made to study local condition, education levels. Since applying common test for all candidates across entire country can overshadow a candidates capabilities. This factor must be given importance since Indian society is divided on various parameters such as education, language, infrastructure etc. A test with high level of English and complicated sentence structure can be a hurdle in areas where language itself is barrier. An option is to have different tests for different regions. Blend technology into every aspect of your recruiting and hiring process.

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Web-based technology lets you increase hiring speed and quality while reducing costs. Currently, job boards constitute the biggest use of the Web, offering access to thousands of resumes within hours. But the Web can also be a powerful tool for screening and qualifying that flood of resumes. Companies have begun to use the Web to collect and instantly match data on candidate skills, motivations, and experiences against job criteria. Other uses of Web-based technology include online interviewing, candidate assessment and testing, applicant self-scheduling, and tracking. Work the Web wisely and you save time for recruiters and hiring managers and nab top candidates before your competitors can. It is recommended that apart from the person-job fit, method must be devised to check for person-organization fit. A person-organization helps to assess how well a candidate is suited the organization. Whether the attitude he/she carries will promote both organizational as well personal goals. This takes a great importance especially when attrition is high. It will help the organization to retain its employees for a longer period of time and less burden on recruitment staff. Build and manage your candidate pool as a precious resource A "candidate pool" is a group of individuals who have shown interest in working for your company and are qualified for and ready to fill certain positions. Rather than undertaking the time-consuming process of filling one job at a time, you draw on the candidate pool and fill jobs as they become available. How do you keep a pool active? Some companies send their newsletters to pool candidates, give them product coupons, and keep in touch through e-mail. Pool management is not easy in a tight labor market --good candidates often go elsewhere. But many organizations, especially those with a reputation as a great place to work, are able to fill positions quickly using the pool concept. Create winning impression even on those who are not selected Its very important to create a favorable impression of your organization on all those who come for interview. Those who are not selected in the first round of personal interview should also carry this impression that they have missed the opportunity to work in a great company. For this, there must a proper coordination of the interview of the candidate and greater degree of professionalism. A candidate when invited for a interview must be 72

attended as soon as possible and should be made to wait for hours together. Interviews conducted on a scheduled time leave a good impression on the candidate. Even if he is not selected, a good impression about the will make him recommend the name to his people.

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CHAPTER-7

CONCLUSION & IMPLICATIONS

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CHAPTER-7 CONCLUSION & IMPLICATIONS Insurance is confronted with high attrition rate. Therefore it makes recruitment a critical function in the organization. In order to grow and sustain in the competitive environment it is important for an organization to continuously develop and bring out innovations in all it activities. It is only when organization is recognized for its quality that it can build a stability with its customers. Thus an organization must be able to stand out in the crowd. The first step in this direction is to ensure competitive people come in the organization. Therefore recruitment in this regard becomes an important function. The organization must constantly improvise in its recruitment process so that it is able to attract best in the industry in order to serve the best. Thus the organization must look out for methods that can enable it to adopt best recruitment practices. Every endeavor undertaken to accomplish challenging goals, can only be successful under the experienced and encouraging guidance. I am privileged to have undergone training at ICICI Bank. As learning never stops, my learning at Kotak has come from a lot of exposure, on the job training and close interaction with the corporate. In brief my learning and achievements can be summarized as under: 

Understanding of person and profile fit.



Convince people about the job profile and to sell the job to the prospective candidate;



Following up with the candidates during the entire selection process;



Learned to convince candidates about the offer rolled out and making them accept the offer through effective communication;



Learning about salary fitments.

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

Communicating with the corporate;



Performance appraisals, its various types, implications and significance;



Handling queries received from various quarters;



Managing HR department in the absence of HR manager;



Reply to official mails;



Prioritize issues according to their importance;



Field work exposure to tap candidates that further strengthened the learning.

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BIBLIOGRAPHY

1. Al-Qirim, N. (2007a). A research trilogy into e-commerce adoption in small businesses in New Zealand. Electronic Markets, 17(4), 263-285. 2. Balabanovic, M., and Shoham, Y. 2008. Fab: Content-based, collaborative recommendation. Communications of the ACM, 40(3): pp. 66-72. 3. Cappeli P. (2007). ‘Making the Most of Online Recruiting’, Harvard Business Review, Vol. 70(3). 4. David, Paul A. 2008. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review (Papers and Proceedings), 80:2, pp. 355-61. 5. Daniel, E. & Wilson, H. (2008). Adoption intention and benefits realised: a study of ecommerce in UK SMEs. Journal of Small Business and Enterprise Development, 9(4), 331-348. 6. Eriksen, Leif, 2008, “Online Vertical Markets: Not a One-Size-Fits-All World,” The Report on Manufacturing, March, Boston: AMR Research. 7. Gupta Nanda, 2007, “Freemarkets - A Buyers Market,” 123Jump, May 19, 1. Heneman R., Greenberger D. (eds.)- Human Resource Management in Virtual Organization , Information Age Publishing Inc., 2002. 8. Hoffman, D. L., and T. P. Novak. 2008. Marketing in hypermedia computer-mediated environments: conceptual foundations. Journal of Marketing 60 (July): 50-68. 9. Kaplan, Steven and Mohanbir Sawney, 2008, “E-Hubs: The New B2B Marketplaces,” Harvard Business Review, May-June, pp. 97-103. Management Review 33 (1):5-14. 10. Levitt, T. 2008. The industrialization of service. Harvard Business Review 54 (5):63-74.

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11. McManus M.A., Ferguson M.W. (2007). ‘Biodata, Personality and Demographic Differences of Recruits from Three Sources, International Journal of Selection and Assessment, Volume 11, numbers 2/3, June/September. 12. Pine, B. J., B. Victor, and A. C. Boynton. 2007. Making mass customization work. Harvard Business Review 71 (5):108-119. 13. Pine, B. J., III, and J. H. Gilmore. 2008. Welcome to the experience economy. Harvard Business Review 76 (4):97-105. 14. Sculley, Arthur B. and W. William Woods, 2008, B2B Exchanges: The Killer Application in the Business-to-Business Internet Revolution, ISI Publications. 15. Sherry, J. F. 2006. A sociocultural analysis of a midwestern American flea market. Journal of Consumer Research 17 (1):13-30.

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COPY OF THE QUESTIONNAIRE Name___________________ Designation___________________ No.______________ Gender_______________________ Should you wish to continue?

o

Yes (Continue)

o

No (Terminate)

Q1. Please tell me for how many years you have been working in this organization?

o

Less than 2 years

o

2 to less than 4 years

o

4 to less than 6 years

o

More than 6 years

Q2. Please tell me the source of recruitment in your organization. Ads/Jobs Sites Employee Referrals Consultants Direct Q3. Please tell me about the types of candidates for recruitment and selection. Outstation Candidates Local Candidates Q4. Please tell about the reason for Backout in your organization. Lengthy interview Delay in Better offer Brand issues Others

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Q5. Please rate the satisfaction of the candidates with the explanation of job profile provided by you on the scale of 1 to 5 where 1 means extremely dissatisfied and 5 mean extremely satisfied. 5

4

3

2

Extremely Dissatisfied

1 Extremely Satisfied

Q6. Please tell me the preference of selecting candidates for the following factors. Experience Age Gender Educational Qualification Professional Qualification Q7. Please tell me how do you motivate and attract the candidate for the jobs. Select from the following Company Profile Job Profile Salary Facilities Designation Location Q8. Please tell me the percentage of back-out in the typical selection process for a job as per best of your knowledge? 0-5% 6-10% 11-20% More than 20%

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Q9. Please tell me which area do you think more important for the improvement to minimize the back-out of the candidates? Initial Counseling Company Profile Description Breakup of Salary Job Profile Description

Thanks for your co-operation. I am assuring you that your information will be kept confidential and solely used in this research study only.

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