PREFACE

This project report contains material collected from the study on “The

process of Recruitment, selection and Training of sales personnel” in

Birla Sun Life Insurance, Tura, as a part of the course curriculum of 3rd

B.BA, NEHU.

Recruitment is a process to discover the source of manpower to

meet the requirement of staffing schedule and to employ effective

measure for attracting the manpower in adequate numbers to facilitate

effective selection of and efficient working force.

After recruiting a pool of sales candidates, managers must screen

out candidates who do not meet the hiring criteria. Selection is a process

to decide whether an applicant meets the qualification for the specific

job and to chase that who is most likely to perform well in job sales

training has been recognized as a vital factor in the suren of sales person.

Training of salesmen is a process of selling skills development so as to

increase the ability, knowledge and experience of the salesman to

perform well on the job.

ACKNOWLEDGEMENT

Doing this project, writing and compiling it into a project report was

not an individual effort. Without the guidance, encouragement and

help of many people this endeavor of mine would not have been

successful.

First of all I would extend my thanks to the Principal of Don Bosco

College, Tura, Fr. V.A. Cyraic. I express my heartfelt gratitude to

Mr. Sanjeev Hazarika, HOD, Business Administration, and Sir

Sandric A Sangma and Bilrak K Marak and Sir Paul Hrangkhawl

lacturer department of BBA for their help.

My heartfelt gratitude to Mr. Pulok Debnath, Branch Manager Birla

Sunlife Life Insurance, Tura for sparing me his precious time and

bearing my continual approach.

My thanks to my fellow mates for their constant company during my

study.

Last but not the least, thanks to my parents for their mental as well

as financial support.

Above all I thank Almighty God for all his blessings.

Swarnima Tiwari.

1. Executive Summary

1.1 Introduction

Sales personal serve as the company’s personal link to customers the sales representative is the

company to many of its customers. It is the sales representatives who tiring back much needed

information to the customer.

Once the company has established objectives, strategy, structure, size and compensation,

it has to recruit, select, and train, supervise, motivate and evaluate sales representatives various

policies and procedures guide these decisions. Evidently, the first step in developing an effective

sales force is the recruitment of first class salesman. The importance of selection of salesman can

never be over-emphasized. Each member of the sales force must be selected with care. A vibrant

sales organization cannot afford the luxury of careless selection of salesman so, a high turnover

of sales force has to be avoided. No firm can afford to carry “passengers” who do not contribute

much to the sales or “quarrelsome guys” who often disrupt relations with customers, prospects

and distributors. It is essential, therefore to be careful in the recruitment of salesman.

Recruitment is just the part of building a top notch sales force. The other part relates to

retaining them, managing them and making them contribute their best. Basically, a good

compensation plan is one that directs the salesmen’s activities towards the objectives of the firm.

It should stimulate the salesman to put in their best efforts both qualitatively and quantitatively

towards achieving the planned sales and other goals. It should ensure a minimum income to the

salesman and appropriate additional reward for above performance.

Motivating the sales force is the crux of the sales force management. The mettle of sales

manager always gets tested on the touchstone of their motivational skill. Motivation is the sum

total of all that a sales manager does to his salesman while a compensation policy no doubt has

an impact on motivation, there are many other aspects that makeup motivation. Moral building,

training and development, sales supervision and co-ordination and effective communication are

all part of motivation. Sensible management in itself is a motivational tool.

Sales training has been recognized as a vital factor in the success of a salesperson. Sales

executives generally agree that inadequate training of sales people is one of the most common

problems they encounter. Modern companies consider training costs as an investment in the

future success of the firm rather than simply as a current expense. Salesman continually needs

help in mastering new skills, applying new knowledge and adjusting themselves to new work

behaviour. Hence, training of salesman will never become obsolete.

Once the company has selected the best qualified sales person, step should be taken to

initiate a training programme to help the person achieve success. Sales training that is carefully

planned and executed can make a major contribution to the performance of every salesperson.

Even salespersons with great potential are handicapped when the company fails to provide

adequate training. In the absence of formal training, employees develop their own approaches to

performing tasks. Many sales managers believe that new sales people need special attention

during the orientation and training period. Training of salesman is a process of selling skills

development so as to increase the ability, knowledge and experience of the salesman to perform

well on the job.

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1.2 A BRIEF OVERVIEW OF INSURANCE

Insurance is a major aspect of any kind of enterprise in the world since man knows

what’s there in store in future. The idea has been in practice since ancient days in some

form or the other. The increasing importance of insurance has led to the emergence of a

global insurance industry and insurance companies have gained in stature around the

world.

To talk about the insurance companies, insurance in modern form had occurred after the

great fire in London in 1666 which destroyed myriad house. Nicholas Bartion , following

the disaster, had established England’s forts fire insurance company (The fire office) in

1680. In the United State, the first insurance company which provided fire insurance was

formed in south Carolina; in 1732. The practice of perpetual insurance against fire was

popularized by Benjamin Franklin. In 1752, he founded the philadel phla contribution

ship for the Insurance of Houses in India, the Oriental Life Insurance Company was

started in 1818 by Europeans, much before independence. The first indigenous insurance

company in India was started in the year 1870 in the form of Bombay Mutual Life

Assurance Society.

1.3 Insurance companies are mainly classified into: Life Insurance Companies (those which deal with life insurance, annuities and pension

products)

Non-Life Or General Insurance Companies: The first category of insurance companies

handles a long-term business covering risks of a person’s life or his / her pension over a

long period of time.

Examples of such insurance companies are: American Medical Security Life Insurance

Company in USA, Bajaj Allianz General Insurance of India etc.

In most of the countries, life and non-life insurance are subject to different

regulations.

1.4 Beside there are other kinds of Insurance Companies: Mutual insurance companies which are owned by the policy holders.

Stock insurance companies are owned by stockholders.

Re-insurance companies are those insurance companies that sell policies to other

insurance companies to reduce risks and protect themselves from gigantic losses.

Captive Insurance Companies are limited purpose insurance companies established for

Financial Risk arising from their parent group(s). [The lyne of risk include property

damage, public and products liability, professional indemnity etc]

Insurance consultant companies are paid by the customer to find out the best insurance

policy amongst various companies.

Third party administration companies perform underwriting and even for insurance

companies.

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1.5 Reasons For Choosing the Topic:

The following are the reasons as to why the given topic namely Recruitment Selection

and Training of sales force was chosen by me:

1. To know about the sources of recruitment of the company.

2. To know about the selection process of the company.

3. To know about the training programmer given to the sales forces.

4. To know the qualities sought by the company in their sales force.

Thus, these were the reasons for selecting the topic namely recruitment, selection and

training of sales force to carry out the project

1.4: REASONS FOR SELECTING THE COMPANY:

The following are the reasons as to why Birla sun life Insurance was Chosen by me.

1. The company is a well known one and has goodwill in the national and international

market also.

2. It has an experience of over 9 years and is currently ranked amongst the top 5 life

insurance companies in the country.

3. To know the companies sources and process of recruitment, selection and training of

sales force.

Thus, these were the reasons for selecting the company to carry out the project.

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1.5 Need and importance of the study:

Sound recruitment policy and procedures are essential for a greater selling

efficiency. A selected salesman must have all the qualities through which a firm

can attain all fortunes. Otherwise the firm invites misfortune by unsound

recruitment policy selecting incompetent, uncared or disinterested sales army. A

minor mistake, on the part of the management, will doom the future of the firm

entirely.

Selection procedure is different from firm to firm. Each firm has got its

own method in choosing men for employment. The requirement of quality in men

depends on the job description. Similarly, the selection method also depends upon

the sales management.

The question of recruitment comes before the questions of actual

selection. The success of the sales supervisor and the selling organization depends

materially on the quality of salesmen. This in turn necessarily leans on the quality

of recruitment and selection. Before the selection process is entered into the

person in-charge of selection should realize that it will be necessary to recruit a

much larger number of applicants to select the required number of new

employees. It therefore, becomes necessary to decide how many applicants should

be considered in the selection procedure so that the selection might end in the

correct number of applicants becoming new employees.

The old belief that still persists in certain quarters is that the ability to get

along with people and physical personality are all important and that the selling

ability is something intangible which a person may or may not have. Fortunately,

progressive sales executive realize that, provided basic characteristics are present,

salesmen are not born but made. This has resulted in the application of scientific

management techniques in developing salesman, the emphasis being placed on

adequate selection procedure, appropriate training, and sufficient supervision.

Selection is important even from training aspect as it would be waste of good

money to train bad material. The training aspect is thus connected with recruited

and selected salesmen.

Training is important because a trained salesman would prove to be

effective in increasing the sales volume. But more importantly it can act as an

incentive to make the salesmen work harder and like his job. Trained salesmen

can see opportunities in a market which have been previously over looked.

Training enables salesman to gain a deeper understanding of the customer’s

problems and can help solve such problems. Moreover, the trained salesman is

less likely to leave the job as he sees many opportunities for advancement through

increased sales and compensation.

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COMPANY PROFILE

BIRLA SUN LIFE INSURANCE

Risk management against a huge less is very necessary, and insurance is transfer of risk from one entity to

another. For this several companies have come up these days with life, health, medical and travel insurance. One

of such company is Birla Sun Life Insurance. Providing a number of insurance products, Birla Sun Life is a

prestigious company to bond with. Birla Sun Life Insurance Company Limited is a joint venture between the Sun

Life Financial Inc and Aditya Birla Group.

About Aditya Birla: Aditya Birla Group through Aditya Birla Financial Services: Group (ABFSG), has strong

presence across various financial services verticals that include life insurance, fond management, distribution &

wealth management, security based lending, insurance broking, private equity and retail broking. The seven

companies representing ABFSG and Birla Sun Life Insurance Company, Birla Sun Life Asset Management

Company, Birla Sun Life Distribution Company, Birla Global Finance Company, Birla Insurance Advisory &

Broking services, Aditya Birla Capital Advisory and Apollo Sindhoori Capital Investment. In final year 2008-

2009, the consolidated revenues of ABFSG from these businesses crossed Rs. 4763 crores registering a growth

rate of 36%.

About Sun Life: Sun Life Financial is a leading international financial services organization providing a diverse

range of production and wealth accumulation products and services to individuals and corporate customers.

Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including

Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India,

China and Bermuda. As of December 31, 2008, the Sun Life Financial group of companies had total assets under

management of $ 381 billion.

Birla Sun Life Insurance was the first company is the sector of financial solutions to begin Business

Continuity Plan. In fact, policies were first issued by this insurance company on the internet. This insurance

provider company has pioneered the Unique Unit Linked Life Insurance solution in India. It is one of the top

players in the industry of private Life Insurance Scheme.

With an experience of over 9 years, BSLI contributed significantly to the growth and development of the

life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the

country.

VISION, MISSION AND VALUES

VISION:

To be a leader and role model in broad based and integrated financial services business.

MISSION:

To help people mitigate risks of life, avident, health and money at all stages and under all circumstances.

Enhance the financial future of our customers including enterprises.

VALUES:

Integrity

Commitment

Passion

Seamlessness

Speed

SOME OF THE BIRLA INSURANCE PRODUCTS INCLUDE:

Insurance for Protection

Insurance for Retirement

Insurance for Savings

Insurance for Children

Insurance for Riders

Insurance for Rural

OTHER BIRLA SUN LIFE INSURANCE FOR SAVINGS INCLUDE:

Birla Sun Life Insurance Flexi Save Plus

Birla Sun Life Insurance Dream Plan

Birla Sun Life Insurance Gold-Plus II

Birla Sun Life Insurance Classic Life Premier

Birla Sun Life Insurance Prime Life Premier

Birla Sun Life Insurance Prime Life

Birla Sun Life Insurance Simply Life

Birla Sun Life Insurance Flexi Cash Flow

Birla Sun Life Insurance Supreme Life

2.4 ORGANISATIONAL STRUCTURE OF BIRLA SUNLIFE

INSURANCE

C.E.O (Chief Executive Officer)

C.F.O (Chief Financial Officer)

C.D.O (Chief Design Officer)

H.O.S (Head of Sales)

Z.M (Zonal Manager)

R.M (Regional Manager)

T.M.S (Territory Managers)

B.H (Branch Heads)

B.M (Branch Managers)

B.D.M. / B.P (Business Development Manager / Business Partner)

S.A.M (Senior Agency Manager)

A.M (Agency Manager)

A.A.M (Assistant Agency Manager)

I.A (Insurance Advisors)

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4. Topic theory

3.1 RECRUITMENT, SELECTIONS TRAINING OF SALES

FORCE:

Recruitment is the process of identifying key people in the community.

Once identified, the candidates are invited to an informal discussion of the job

opportunity. The purpose of this process is to provide candidates with realistic job

preview.

In the words of Dale Yoder,

“Recruitment is a process to discover the source of manpower to meet the

requirement of staffing schedule and to employ effective measures for attracting

the manpower in adequate number of facilitates effective selection of and efficient

working force”.

Thus, all the activities involved in securing the application for the sales

positions are referred to as recruitment. Recruitment sets out the necessary stages

to clarify what kind of person is required, where he might be found and how to

make the right choice.

3.2 PROCESS OF RECRUITMENT OF SALES PERSONNEL:

The process is described below:

It includes the following steps:

1. Establishing responsibility for recruitment.

2. Determining sales-force needs.

3. Considering company culture.

4. Determining the number of salesman needed.

5. Developing a profile of the type of salesman needed.

6. Evaluating recruitment programme.

3.4 SOURCES OF RECRUITMENT:

Most firms actively recruit salesmen from many sources. To determine the

best sources, a firm should first find out where the firms best salesmen came from

in the past. If the company is recruiting for the first time, or it its current sources

are inadequate, then the job description and hiring specifications provide a useful

starting point. Once satisfactory sources are located, management should maintain

a continuing relationship with them.

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3.5 THE SOURCES OF RECRUITMENT OF SALES-FORCE CAN BE

BROADLY CLASSIFIED INTO:

A) Sources with in the company

B) Sources out side the company

After recruiting a pool of sales candidates, managers must screen out

candidates who do not meet the hiring criteria. Selection is a process to decide

whether an applicant meets the qualifications for the specific job and to choose

the one who is most likely to perform will in the job.

3.6 PROCEDURE, PROCESS AND TOOLS OF SELECTION OF SALES

PEOPLE:

Selection is a filtering process incorporating many steps. It is a set of successive

“Screens”. Employment offers are extended to applicants surviving all steps. The

recruiter begins the selection process by making pre-interview screening and by

evaluating application blanks and resumes, and proceeds to interview and

background checks. In this way obviously unsuitable prospects can be eliminated

with low-cost methods, and more expensive testing procedures can be saved for a

smaller group of promising candidates.

No single selection tool is adequate by itself. Companies should use a

series of tools to carefully determine an applicant’s qualifications. Selection tools

and procedures are only aids and sound executive judgment and not substitutes for

it. They can obviously eliminate unqualified candidates and generally help

recruiter’s spot extremely capable individuals.

3.7 THE SELECTION PROCESS IS DEPICTED BELOW:

Pre-interview screening.

Complete application blank.

Conduct screening interviews.

Check credit and background investigation.

Complete psychological and achievement tests.

Secondary interviews.

Make offer for sales positions.

Physical examination.

Measure subsequent success on the job.

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Sales training has been recognized as a vital factor in the success of a sales

person. Sales executive generally agree that inadequate training of sales people is

one of the most common problems they encounter. Modern companies consider

training cost as an investment in mastering new skills, applying now knowledge

and adjusting themselves to new work behaviour. Hence training of the salesmen

will never become obsolete.

Once the company has selected the best qualified sales persons step should be

taken to initiate a training programme to help the persons achieve success. Sales

training that is carefully planned and executed can make a major contribution to

the performance of every sales person. Study results indicate that sales people

have more positive view about their job situation, greater commitment and

improved performance when their sales managers clarify their job role, how to

execute their tasks and how their needs can be satisfied with successful job

performance.

Training of salesmen is a process of selling skills development so as to increase

the ability, knowledge and experience of the salesmen to perform well on the job.

IN THE WORDS OF GEORGE R. COLLINS:

“Sales training is an organized actively involving fact finding, planning,

coaching, practicing and purposive attempt to develop selling skill and to add

these skills to select native, ability, casually acquired knowledge and experience”.

Sales training is important because it increases the productivity of the

salesmen. The money spent on recruiting and selecting salesmen may be wasted

of their hiring is not followed up with proper training.

As sales person develop greater self-confidence through training, they may

be encouraged to put their skills to use by trying harder than they did before.

Training is not a panacea, but it can lead to significant improvement in

performance if it is properly designed, implemented and reinforced. Training

programmes impart the skills sales people need to achieve. It should noted, that,

companies frequently try to use training to solve problems they actually cannot

solve. Trained sales people provide better solutions to their customer’s problems.

In most companies, the rate of sales personnel turnover is high for new

personnel than experienced people. Often new sales personnel find themselves

unprepared to perform their job satisfactorily, become discouraged, and leave the

company. If sales training helps new personnel to perform their jobs satisfactorily,

the rate of sales personnel turnover declines, recruitment and selection costs fall

and overall efficiency of the personnel’s selling operation climbs.

Training is used to ensure that sales people understand the importance of

the information they provide to the company concerning their customers and the

market place. They need to know the information will be used and how it affects

the performance of the firm.

There are several types of sales training programmes; the most important

and comprehensive is the training programme for newly hired sales personnel.

The other is for experienced salesmen.

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3.8 A SUCCESSFUL TRAINING PROGRAMME CONSISTS OF FOUR

PHASES:

Training Assessment.

Programme Design.

Reinforcement.

Evaluation.

A PROJECT REPORT

ON

RECRUITMENT TRAINING AND SELECTION OF SALES FORCE

OF

BIRLA SUNLIFE INSURANCE LTD

CONDUCTED BY:

SWARNIMA TIWARI

3RD YEAR BBA

ROLL NO. BBO7-008

For the partial fulfillment of the requirement of Bachelors of

Business Administration

Submitted to:

North Eastern Hills University

Don Bosco College

Tura Meghalaya

794002