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SUMMER TRAINING PROJECT REPORT
ON
“RECRUITMENT PROCESS OF RELIANCE LIFE INSURANCE”
SUBMITTED BY :AYUSH KUMAR:JL13PGDM134 RUPA GORAI:JL13PGDM183 SWATI CHACHAN:JL13PGDM174
Contents Page No.
AcknowledgementCertificateChapter 1 Birth of RLIC 1-8
1
Chapter 2 Chairmen Profile 9-10
Chapter 3 Company Profile 11-16 Goals and Achievements 11
Philosophy 12
Companies Vision and Culture 13
Leadership 14
Values 15-16
Chapter 4 Introduction (Recruitment) 18-26 Definition of Recruitment 19
Source of Recruitment 20
Method of Recruitment 21-23
Evaluation of alternative sources 25
Purpose & importance of recruitment 26
Chapter 5 Recruitment Process 27-37 Recruitment Planning 28-29
Application pool 30
Evaluation & control of Recruitment 31
Chart of selection process 32
Selection process 33-37
Chapter 7 Recruitment process of RLIC 43-56 Recruitment policy 43
Recruitment process in RLIC 44-47
Selection Process in RLIC 48-56
Chapter 8 Suggestions 57-61
2
ACKNOWLEDGEMENT
This project plays an extraordinary role in exposing a student to real life
situations in an industry. It helps in having an insight and an understanding and
prepares him for his forthcoming corporate challenges. It was a great experience
for me to work on Recruitment Process at Reliance Life Insurance Private Limited , on the project allotted, through which I could learn how to work in a
professional atmosphere and that to in a reputed organization.
At the on set of this project I would like to express my deepest sense of gratitude
for the people who have guided me and have been a constant source of
inspiration through the tenure of my training.
I am grateful to all the employees of the Department of Human Resource for
their invaluable support and constant guidance.
3
I am also grateful to the officers of Reliance Life Insurance for giving me their
precious time & suggestions, which helped me in understanding the things better.
I am also thankful to my Faculty professor Anurag Shankar for enlightening us
with the theoretical knowledge on the topic & for his guidance during the project.
Ayush kumarRupa goraiSwati chachan
BIRTH OF RELIANCE LIFE INSURANCEAnil Ambani’s Reliance Life Insurance Company Limited, a subsidiary of
Reliance Capital Limited, has concluded a much awaited deal in the life
insurance sector.
The Insurance Regulatory and Development Authority (IRDA) has
approved the change in the name of AMP Sanmar Life Insurance Company
Limited to Reliance Life Insurance Company Limited.
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Reliance, Capital has interests in asset management and mutual funds,
stock broking, life insurance, general insurance, proprietary investments, private
equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non Banking Financial Company
(NBFC) registered with the Reserve Bank of India Act, 1934.
The deal gives Reliance Life a jumpstart as AMP Sanmar has around 90 branch,
900 staff and 9,000. Further, AMP Sanmar is doing relatively good business even
after the sale announcement.
The change was necessitated after the acquisition of the holding of AMP
Australia and the Sanmar group in AMP Sanmar by Reliance Capital for Anil
Ambani’s proposed life insurance venture, now called Reliance Life Insurance for
an undisclosed sum. Subsequently, a fresh certificate of incorporation was
issued by the Registrar of Companies, Tamil Nadu, changing the name of the
company on January 17, 2006.
Accepting the change in the name of the company in its registers, the
IRDA has permitted Reliance Life to carry on life insurance subject to the
condition that the company should honor the commitments to the AMP
Sanmar without altering any of the terms and conditions of the original
policy.
Even before selling a single life insurance policy, Reliance Life, a part of
the Anil Dhtirubhai Ambani Enterprises, has snapped has Chennai- based private
life insurer AMP Sanmar Life Insurance Company Limited. AMP Sanmar is a 26 :
75 joint venture between AM, Australia and Sanmar group.
What is clear is that Reliance Life has clearly outbid other suitors like Aviva, ICICI
Prudential Life Insurance Company, etc. This acquisition makes Reliance Life the
first private sector life insurer to start business without foreign partner. Till this
July the company had earned a premium income of around Rs 35 crore.
According to sources, in July the company earned a fresh premium
income of Rs 10 crore – far exceeding its own expectations. Going by this trend,
5
officials say the company would complete its nine months target by
August/September itself.
COMPANY PROFILE
Company’s Name Reliance Life Insurance (ADA Group)
Head office Mumbai
Established Oct 2005
CEO P. Nand Gopala
New Business Premium Rs 933Crs for the last financial year
Growth rate 377%
Branch 114 to 339
Advisor From 9900 to over 9500
Chief Product Individual Plant, Employee Benefit plan
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PRODUCT OF RELIANCE LIFE INSURANCE 1. Individual PlanSavings (Endowment)
Reliance Endowment Plan
Reliance Special Endowment Plan
Reliance Cash Flow Plan
Reliance Child Plan
Reliance Whole Life Plan
Pension
Reliance Golden Years Plan
Investments
Reliance Market Return Plan
Risk Protection
2. Reliance Team PlanRisk (Protection)
Reliance Group Team Assurance Policy
Reliance EDLI Scheme
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Pensions
Reliance Group Gratuity Policy
Reliance Group Superannuation Policy
CHAIRMAN’S PROFIL
Mr. Anil D. Ambani is the chairman of Reliance capital, Reliance
Communication and Chairman & Managing Director of Reliance Energy
Limited .Till recently he also held the position of the Vice Chairman and
Managing Director of Reliance Industries Limited.
The Reliance Group is India’s largest business house, founded by
late Shri Dhirubhai H.Ambani(1932-2002)
.
Anil Ambani is one of the foremost entrepreneurs of
independent India. He is the Chairman of Anil Dhirubhai Ambani Group. Earlier,
before the split in the Reliance Group, Anil Ambani held the posy of Vise
Chairman & Managing Director in Reliance Industries Limited (RIL).
Born on June4,1959, Anil Ambani did his Bachelors in
Science from the University of Bombay & Masters in Business Administration
The Wharton School at the University of Pennsylvania.
Anil Ambani joined Reliance in 1983 as Co-Chife Executive
Officer. He pioneered India Inc’s forays into overseas capital market with
international public offerings of global depository receipts, convertibles and
bonds. Starting from 1991, he led Reliance in its effort to
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raise, around US$2 billion from overseas financial markets. In January 1997, the
100-year Yankee bond issue was launched under his stewardship.
After the split in Reliance Group, Anil Ambani founded Anil Dirubhai Ambani
Group .He is the Chairman of all listed Group companies, which include:
Reliance Communication, Reliance Capital, Reliance Energy and Reliance
Natural Resources Limited.
Anil Ambani was elected as an independent member Rajya Sabha
MP in June 2004. But he resigned voluntarily on March 25,2006
Anil Ambani has won several awards and honours.Major among
these include : CEO of the year 2004’ in the Platts Global Energy Awards. MTV
Youth Icon of the Year in September 2003, The Entrepreneur of the Decade
Award’ by the Bombay Management Associatio, and ‘Businessman of the year
Award’ by leading Business Magazine, Business India in 1997.
GOALS AND ACHIEVEMENTSGoals:Reliance expect to …………
Build scale and reach to rival the largest player in the industry.
Continue developing unique products and services embodying simplicity,
convenience and creativity
Accomplish break-even in results by 2009-10
Achieve market leadership in the private sector by March 2009.
Achievements 1) Among top 3companies in the private Financial Services and
Banking Sector.
2) Top NBFC in the country.
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3) Net worth of over Rs. 4300 crore
4) Business interests – Mutual Funds, Asset Management, Life
Insurance, General Insurance and Banking.
5) Over 165,000 shareholders.
RELIANCE PHILOSOPHYOne of the most valuable things, which the founder of Reliance give to the
company, was philosophy that serves as the basis of Business endeavors of
Reliance now & in future.
“Action without philosophy is a lethal weapon, philosophy without action is worthless”.The management standards to be shared by all Reliance group cooperation
worldwide as “A company present worldwide”
1. Company’s Mission : Create un matched value for everyone through
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2. Company’s Vision:-Reliance Vision is a reflection of what we see the future to be EMPOWERING
EVERYONE LIFE THEIR DREAMS.
3. Company’s Culture :- 1. Pride and Passion : Emotions that bond and drive excellence.
2. Speed and Execution: Speed in thought and action to enable state of the
art execution of ideas.
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Dependable
Profitable Life insurance and pension plans
Effective
Transparent
3. Ownership and Commitment: Strongest together, committed to
organization’s vision.
4. Respect and Dignity: Care for people and value human dignity.
5. Integrity: Constant guiding focus
6. Customer Centricity: Anticipated need, always exceed expectations in
delivering products, reach and services.
INTRODUCTION
In today's fast-paced business world, HR managers of business
organizations need to adopt a more strategic approach towards recruitment in
order to be effective. This implies adopting a broad-based approach in contrast
to a narrow approach of just filling up a position as soon as it becomes vacant.
The recruitment function includes the determination of manpower
requirements, preparation of job descriptions, job analyses, establishing potential
sources of recruitment, induction and follow-up. The importance of planning in
this sense cannot be under-estimated. Knowledge of economic and labor trends,
the demand for and supply of certain skill sets lead to better forecasting and
planning. To reap additional benefits, an integrated approach to recruitment will
not only be able to assess the overall recruitment needs of the organization, but
also help in lowering costs and adding to business intelligence.
The recruitment efforts also need to achieve the objective of building a
diverse workforce in addition to a superior workforce. This will allow the
organization to meet affirmative action goals as well as become an attractive
employer. A diverse workforce also enables the company to reach diverse
markets and serves as an important criterion for winning important business
deals.
To achieve these multiple objectives, recruitment efforts have to become
more effective and efficient. Technology has a major role to play in achieving
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these goals. Ultimately, the recruitment system must have in-build flexibility to
cope with changing times. Further, an organization needs to
consider all these aspects to formulate the best recruitment strategy to suit its
unique needs and support overall business goals. An element of innovativeness
in designing the recruitment programs to achieve these objectives, customized to
suit the organization’s unique needs, can fetch a number of direct and indirect
benefits for the organization.
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DEFINITIONRecruitment is a ‘linking function’-joining together those with jobs to fill and
those seeking jobs. It is a ‘joining process’ in that it tries to bring together job
seekers and employer with a view to encourage the former to apply for a job with
the latter.
The basic purpose of recruiting is to develop a group of potentially
qualified people. To this end, the organization must communicate the position in
such a way that job seeks respond. To be cost effective, the recruitment process
should attract qualified applicants and provide enough information for unqualified
persons to self-select themselves out.
A general recruitment process involves identifying vacancies, prepare job
description and person specification, advertising, managing the response, short-
listing, arranging interviews, conducting interview, decision making, convey the
decision and appointment action. This means that a lot of time and resources
have to be invested.
Nature and
requirements of Number of specific jobs to be
Specific job filled
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Job Analysis Personnel Planning
Recruitment
Selection
Pool of Qualified Applicants
Constraints Poor image Unattractive job Government policy
Inducements Compensation Career Opportunities Image Reputation
SOURCES OF RECRUITMENT
The sources of recruitment may be broadly divided into two categories:
internal sources and external sources. Both have their own merits and demerits.
Let’s examine these.
INTERNAL SOURCESPersons who are already working in an organization constitute the
‘Internal sources’. Retrenched employees, retired employees, dependents of
deceased employees may also constitute the internal sources. Whenever any
vacancy arises, someone from within the organization is upgraded, transferred,
promoted or even demoted.
EXTERNAL SOURCESExternal sources lie outside an organization. Here the organization can
have the services of: (a) Employees working in other organizations; (b) Job
aspirants registered with employment exchanges; (c) Students from reputed
educational employees; (d) Candidates forwarded by search firms and
contractors; (f) Candidates responding to the advertisements, issued by the
organization; and (g) Unsolicited applications/walk-ins.
METHODS OF RECRUITMENT
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The following are the most commonly used methods of recruiting people.
(A) INTERNAL METHODS(1) Promotions and Transfers:
This is a method of filling vacancies from within through
transfers and promotions. A transfer is a lateral movement within
the same grade, from one job to another. It may lead t changes in
duties and responsibilities, working conditions, etc., but not
necessarily salary. Promotion, on the other hand, involves
movement of employee from a lower level position to a higher level
position accompanied by (usually) changes in duties,
responsibilities, status and value.
(2) Job Posting:Job posting in another way of hiring people from within. In
this method, the organization publicizes job openings on bulletin
boards, electronic media and similar outlets. One of the important
advantages of this method is that it offers a chance to highly
qualified applicants working within the company to look for growth
opportunities within the company without looking for greener
pastures outside.
(3) Employee Referrals:Employee referral means using personal contacts to locate
job opportunities. It is a recommendation from a current employee
regarding a job applicant. The logic behind employee referral is
that “it takes one to know one”. Employee working in the
organization, in this case, are encouraged to recommend the
names of their friends working in other organizations for a possible
vacancy in the near future. In fact, this has become a popular way
of recruiting people in the highly competitive Information
Technology industry nowadays.
(B) DIRECT METHODS
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(1) Campus RecruitmentIt is method of recruiting by visiting a participating in college
campuses and their placement centres. Here the recruiters visit
reputed educational institutions such as IITs, IIMs, colleges and
universities with a view to pick up job aspirants having requisite
technical or professional skills. Job seekers are provided
information about the jobs and the recruiters, in turn, get a
snapshot of job seekers through constant interchange of
information with respective institutions.
(C) INDIRECT METHODSADVERTISEMENTS
These include advertisements in newspapers; trade, professional
and technical journals; and television; etc. In recent times, this medium
has become just as colorful, lively and imaginative as consumer
advertising. The ads generally give a brief outline of the job
responsibilities, compensation package, prospects in the organization etc.
This method is appropriate when (a) the organization intends to reach a
large group and (b) the organization wants a fairly good number of
talented people – who are geographically spread out.
(1) News papers ads:Here it’s east to place job ads without much of a lead time. It
has flexibility in terms of information and can conveniently target a
specific geographic location. On the negative side, newspaper ads
tend to attract only those who are actively seeking employment at
that point of time, while some of the best candidates who are well
paid and challenged by their current jobs may not be aware of such
openings.
(2) Television and radio ads:These ads are more likely to reach individuals who are not
actively seeking employment; they are more likely to stand out
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distinctly, they help the organization to target the audience more
selectively and they offer considerable scope for designing ads
creatively. However, these ads are expensive. Also, because the
television or radio is simply seen or heard, potential candidates
may have a tough time remembering the details, making application
difficult.
(D) THIRD PARTY METHODS:(1) Private Employment Search Firms:
A search firm is a private employment agency that maintains computerized lists
of qualified applicants and supplies these to employers willing to hire people from
the list for a fee. Firms like Arthur Anderson, Noble and Hewitt, ABC consultants,
SB Billimoria, KPMG, Ferguson Associates offer specialized employment-related
services to corporate houses for a fee, especially for top and middle level
executive vacancies.
(2) Employer Exchanges:As a statutory requirement, companies are also expected to
notify (wherever the employment Exchanges Act, 1959, applies)
their vacancies through the respective Employment Exchanges,
created all over India for helping unemployed youth, displaced
persons, ex-military personnel, physically handicapped, etc.
(3) Gate Hiring and Contractors:Gate hiring (where job seekers, generally blue collar
employees, present themselves at the factory gate and offer
services on a daily basis), hiring through contractors, recruiting
through word-of-mouth publicity re still in use – despite the many
possibilities for their misuse – in the small scale sector in India.
(4) Walk-ins (Unsolicited Applicants):
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Companies generally receive unsolicited applications from
job seekers at various points of time, the number of such
applications depends on economic conditions, the image of the
company and the job seeker’s perception of the types of jobs that
might be available etc. Such applications are generally kept in a
data bank and whenever a suitable vacancy arises, the company
would intimate the candidate to apply through a formal channel.
One important problem with this method is that job seekers
generally apply to number of organizations and when they are
actually required by the organization, either they are already
employed in other organizations or are not simply interested in the
position.
EVALUATION OF ALTERNATIVE SOURCES:Companies have to evaluate the sources of recruiting carefully – looking at cost,
time, flexibility, quality and other criteria – before earmarking funds for the
recruitment process. They cannot afford to fill all their vacancies through a
particular source. To facilitate the decision making process in this regard,
companies rely on the following:
(1) Time lapse data: They show the time lag between the date of requisition
for manpower supply from a department to the actual date of filling the
vacancies in that department. For example, a company’s past experience
may indicate that the average number of days from application to interview
is 10, from interview to offer is 7, from offer to acceptance is 10 and from
acceptance to report for work is 15. Therefore, if the company starts the
recruitment and selection process now, it would require 42 days company
starts the recruitment and selection process now, it would require 42 days
before the new employee joins its ranks. Armed with this information, the
length of the time needed for alternative sources of recruitment can be
ascertained – before pinning hopes on a particular source that meets the
recruitment objectives of the company.
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(2) Yield ratios: These ratios indicate the number of leads/contacts to
generate a given number of hires at a point at time. For example, if a
company needs 10 management trainees in the next six months, it has to
monitor past yield ratios in order to find out the number of candidates to be
contacted for this purpose. On the basis of past experience, to continue
the same example, the company finds that to hire 10 trainees, it has to
extend 20 offers. If the interview-to-offer ratio is 3:2, then 30 interviews
must be conducted. If the invitees ratio is 4:3 then, as many as 40
candidates must be invited. Lastly, if contacts or leads needed to identify
suitable trainees to invite are in 5:1
ratio, then 200 contacts be made. Based on this information, the company
can construct the recruiting yield ratio, as shown below:
Recruiting Yield Pyramid
Offer ratio 1:2 Trainers needed offers made
Interview of offer 3:2 Candidates interviewed
Invitees of interview ratio 4:3 Candidates invited
Leads to invitees
ration 5:1 Candidates
contacted
20
10
30
40
200
20
(3) Surveys and studies: Surveys may also be conducted to find out the
suitability of a particular source for certain positions. For example, as pointed out
previously, employee referral has emerged as a popular way of hiring people in
the Information Technology industry in recent times in India. Correlation studies
could also be carried out to find out the relationship between different sources of
recruitment and factors of success on the job. In addition to these, data on
employee turnover, grievances, disciplinary action would also throw light on the
relative strengths of a particular source of recruitment for different organizational
positions. Before finally identifying the sources of recruitment, the human
resource managers must also look into the cost or hiring a candidate. The cost
per hire can be found out by dividing the recruitment cost by the number of
candidates hired.
PURPOSE AND IMPORTANCE OF RECRUITMENTRecruitment represents the first contact that a company makes with the
personnel having potential to be employed. From the point of view of potential
candidates, recruitment is the process through which they came to know about
the company and the nature of jobs that are being offered. Therefore, if
recruitment process is carried on successfully, it serves the following purpose.
1) Recruitment determines the present and future human recourse
recruitment of the organization in conjunction with human resource
planning activities and job analysis activities.
2) It helps to increase the pool of potential personnel and the organization
and the number of option to choose from.
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3) It helps in increasing the success rate of the selection by filtering the
number of under qualified or over qualified job applicants.
4) It reduce the probability that applicants, one selected and made available
to the organization, leave it after a short period of time.
5) It helps in evaluating the effectiveness of various recruitment techniques
and sources of recruitment.
6) It helps to meet the organization’s legal and social obligations regarding
composition of its workforce.
RECRUITMENT PROCESS
Recruitment is a process consisting of various activities, through which search of
prospective personnel- both in quality- as indicated by human resource planning
and job description and job specification is made. This process includes
recruitment planning, identification of recruitment sources, contesting those
sources and receiving applications from prospective employees.
These applications, then passed on selection process as shown:
1. Recruitment planning,
2. Sources of recruitment
3. Contacting sources
4. Application pool
5. To selection process
6. Evaluation and control
A. Recruitment Planning
Recruitment process starts with its planning which involves the determination of
number of applicants and type of applicants to be contacted.
1. Number of Contacts:
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Organizations, generally, plan to attract more applicants than what they
intend to select as they wish to have option in selecting the right candidates.
This option is required because some of the candidates may not be interested
in joining the organization, each of them may not meet the criteria of
selection. The number of applicants is determined by yield ratio (YR) which
expresses the relationship of applicant inputs to output at various decision
points.
For Example-
Supposing that an organization has received 1000 applications for certain
number of vacancies of a position, yield ratio at various decision point would
be as fallows:
Screening of applications (900 qualified) YR= 9:10
Selection tests (700 appeared) YR =7 :9
Test result (300) YR= 3:7
Interview (100 passed) YR= 1:3
JOBS OFFERED TO (50) YR= 1: 2
Joined (40) YR= 4:5
Total yield ratio = 40:1000 or
4:100
Yield ratio help in determining the number of applications to be solicited to fill-
up the vacancies successfully.
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2. Type of Contacts:
This refers to the type of personnel to be informed about the job openings
based on job description and job specification. This determines how the
prospective personnel may be communicated about the job openings.
For Example :
If an organization requires unskilled workers, mere putting the requirement
notice on the factory gates may be sufficient . if it requires qualified and
experienced managers, perhaps, it may go for advertisement in national
newspapers.
B. Application Pool:
Whatever the method of recruitment is adopted, the ultimate objective is to
attract as many candidates as possible so as to have flexibility in selection.
When the source of recruitment are contacted, the organization receives
applications from prospective candidates.
For Example:
In case of Indian Civil Service, the number of applicants runs into many
thousands. In the corporate sector an organization can expect more number
of application when it advertises for the position of management / executive
trainees as compared to when it advertises for experienced personnel.
Similarly , the number of application depends on the image of the
organization. An organization having better perceived image is able to attract
more number of application. Various applications received for a particular job
are pooled together which become the basis for selection process.
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C. Evaluation and Control of Recruitment :
Evaluation and control of recruitment programme is the last stage of a
recruitment process. In any process, evaluation and control is required to
ensure that the process has gone well in the light of its stated objective and
cost . While the basic objective of recruitment is to attract maximum number
of suitable applicants, the costs of recruitment are on the following items-
1. Cost of salary and other perquisites of recruiters.
2. Cost of advertisement or other recruitment methods such as cost of
campus recruitment, consultant’s fee, etc.
3. Cost of producing supporting literature.
4. Recruitment overhead and administrative expenses.
5. Management and professional time spent on preparing job description, job
specification, advertisements, agency liasion, etc.
6. Cost of over time and outsourcing while the vacancies remain unfilled
7. Cost of recruiting unsuitable candidates for the selection process.
STEPS IN SELECTION PROCESS:
Eliminate those not meeting initial criteria
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Application pool formRecruitment process
Screening of application forms
Selection tests
Selection interviewsChecking of referencesPhysical examinationApproval by appropriate authority Final selectionEmployment contractEvaluation
Eliminate those below cut –off point
Eliminate those not meeting job
and organizational requirements.
Eliminate/reconsider those with
Adverse remarks
Eliminate those not meeting
Physical standards.
Adopt objectively.
Congratulate
D. Selection process:
A selection process involves a number of steps -
1. Screening of application forms.
2. Selection tests
3. Selection interviews.
4. Checking of references.
5. Physical examination.
26
6. Approval by appropriate authority.
7. Final selection
8. Employment contract
9. Evaluation.
It is not necessary that all these steps are involve in every selection
process. The basic idea in a selection process is to solicit maximum possible
information about the candidates to ascertain their suitability for the
employment.
1. Selection of Application . The real process of selection begins with the screening of application.
Prospective employees have to fill up some sort of application forms. These
forms have variety of information about the applicants like their personal bio-
data, achievements, experience, etc. Such information used to screen the
applicant who are found to be qualified for the
consideration of employment. The information may also be used to keep
permanent records of those persons who are selected.
Based on the screening of application only those candidates are called for
future process of selection who are found to be meeting the job standards of
the organization. When the number of applicants meeting the job standards
for exceeds the actual requirements, the organization decide a suitable
number of candidates who will called for further selection process.
2. Selection Tests: Many organizations hold different kinds of selection tests to know more
about the candidates or to reject the candidates who can not be called for
interview etc. selection tests normally supplement the information provided in
the application forms. Selection tests may give information about their
27
attitude, interests, personality, etc, which can not be known by application
forms.
3. Interview: Selection tests are normally formed by personal interview of the candidate.
The basic idea here is to find out overall suitability of candidates for the jobs.
It also provides opportunity to give relevant information about the
organization to the candidates. In many cases interview of preliminary nature
can be conducted before the selection test.
For example in the case of campus selection, preliminary interview is held
for short listing the candidates for further process of selection.
4. Checking of Reference: Many organizations ask the candidates to provide the name of reverse from
whom more information about the candidates can be solicited. Such
information may be related to character, working, etc. the usual refers may
be previous employee associated with the educational institutions from
where the candidates have received education, or other persons of
prominence who may be aware of the candidates behavior and ability.
In our country, reference are nor given adequate importance because of
their business but these can given very useful information which may not be
available otherwise.
5. Physical Examination: Physical examination is carried out to ascertain the physical standards and
fitness of prospective employees. The practice of physical examination
varies a great deal both in terms of coverage and timing. While many
28
organization do not carry physical examination at all, others carry on a very
comprehensive basis.
6. Approval by Appropriate Authority: On the basis of the above steps, suitable candidates are recommended for
selection by the selection committee or personnel department. Though such
a committee or personnel department may have authority to select the
candidates finally, often it has staff authority to recommended the candidates
for selection to the appropriate authority.
Organizations may designate the various authority for approval of final
selection of candidates for different categories of candidates. Thus for top
level managers, board of directors may be approving authority; for lower
level, even functional heads concerned may be approving authority. In
various, it may be syndicate/executive community.
7. Final Selection: After the approval of the competent authority, the selection is final and the
candidate concerned may be informed accordingly. Some time, more than
one name may be suggested by the selection committee and approved by
the competent authority for a single selection. In such a case, the person
whose name is at the top is selected and informed.
8. Employment Contract: The relationship between the organization and its employees is a contractual
one, and from this point of view, any one who is in the employment of the
organization and draws salary/wage is an employee irrespective of the
position held by a person though in practice, often, personnel are divided in
to two categories: management consisting of
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higher levels and employees at lower levels. The implication of contractual
relationship is that both employee and organization must enter in to
employment contract indication the various terms and conditions of the
employment.
9. Evaluation: Evaluation of total selection programme, though strictly not a step of
selection process but helps in ensuring its effectiveness, may be under taken
at two stages: during the process and after the process. During the process,
evaluation tries to measure the reliability and the validity of various steps
used in the selection process. Evaluation, after the process is over,
measures the outcome of the selection process in terms of the performance
of those who have been selected.
SALARY NEGOTIATION (Salary Closing)
Salary negotiation is very important process of selection process .
An organization hire the best candidate and fill the position more quickly with
the help of systematized salary negotiation process. It minimizes productivity
losses stemming form reduced staffing levels. Salary negotiation is a critical
step in the hiring process. It’s important to handle this stage in a timely and
effective manner as professional with high qualification levels and desired
practice area expertise may already by evaluating other opportunities by the
time your organization make an offer.
DEFINITION OF “NEGOTIATION OF SALARY”“To confer with another or in order to come to terms or reach an agreement.”
“A negotiation process where one party negotiates the amount of their pay,
income, earnings, commissions, salary, wages, wages remuneration, annual
review, or salary arise with another party”.
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An extremely important process in which job seekers attempt to obtain the
best compensation package possible, based on skills and experience, the
industry salary range, and the company’s guidelines.
UNDERSTANDING THE PROCESSSalary negotiation begins after the interview process, it really starts for you
with the initial interview. Because it’s what you tell the company about
yourself, your accomplishments and what you can do for them, that will
increase your value when the time to offer you a job comes. The ability to
handle details, multiple projects or excellent time management and follow up
skills will also contribute to your value.
SALARY NEGOTIATION TIPS
Try to keep these basic tips in mind when negotiating, for a better deal.
Review the existing salary levels
Organizations that want to hire the best and talented employees may be
expected to pay slightly well than their competitors, regardless of the business
environment. A review of existing salary levels for similar positions in the industry
and local area is the first step toward determining the offer.
Address the employee’s needs
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To persuade your prospective employee say yes, your ideas will have to address
those things that are important to him. Just like you, your prospective employee
also has needs and concerns.
Be quick
Make the offer as soon as possible, once you have selected the prospective hire.
A delay can cause you to lose the best applicant.
Highlights the reasons of better future prospects When presenting an offer, be sure to highlight the reasons someone would want
to work at your firm. Prospective employees are interested not only in their career
development, but also in staff recognition and bonus programs, advancement
possibilities and unique aspects of the office culture.
Give Time to evaluateGive entry-level legal professionals a few days to consider the offer, and allow up
to a week for attorneys and more experienced candidates. Applicants who will
need to relocate may require additional time.
Flexible ApproachExplore alternatives, if a promising candidate seeks a higher salary than budgets
allow. Flexible scheduling is one option gaining popularity among applicants that
represents little cost to the organization.
BrainstormBrainstorming is the most effective way to find ideas that satisfy everyone's
interests. It works best when you separate it from commitment, first create
possible solutions, and then decide among them.
Objective Criteria It becomes easier to persuade someone to agree with your proposal if he sees
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how that proposal is firmly grounded on objective criteria, such as what similar
firms pay people of like experience or what others in the company make.
Closing NegotiationsWhen faced with a candidate, who is reluctant to accept an offer, try to discover
the source of the hesitation. Consider the potential impact of any changes
required to address these concerns or issues.
Make a backup plan You need to have a backup plan, in case you cannot persuade the employee to
say yes,. Part of preparation is creating a specific action plan so you know what
you will do if you have to walk away from the table.
RECRUITMENT PROCESS OF RELIANCE LIFE INSURANCE COMPANY
Owning to the business expansion of U.P. & Uttranchal, the HR department was
given a target to recruit approx 800 employees which had to be recruited for the
post of Branch Manager, Assistant Branch Managers, Sales Managers and
Customer Care Executives.
RECRUITMENT POLICY IN RELIANCE LIFE INSURANCE
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Looks for people who have capacity for entrepreneurship, risk taking and the will
to win – hallmarks Reliance culture etched indelibly by its chairmen in to the
psyche of the company. The company relies more on personal contacts to fill
senior positions and motivate the people to join it by emphasizing “You are too
tenanted to work in the small pond, come and build India’s first Great Company”.
Its managing director Anil Dheru Bhai Ambani – maintain large network of friends
and associates around the world to tip them of when they find attractive talent.
Today’s, Reliance Life Insurance is one of the few Indian company’s, with a
significant number of expertise with in the organization.
RECRUITMENT PROCESS IN RELIANCE LIFE INSURANCEReliance Life Insurance, consisting of various activities of recruitment process,
through which search of prospective personnel- in Experience, Quality and
Quantity as indicated by their human recourse planning. Recruitment process of
reliance life includes recruitment planning, identification of recruitment sources,
contacting those sources and receiving application from prospective employees.
These applications are, then, pass on selection process as shows in figure.
SELECTION PROCESS
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RecruitmentPlanning
Strategy development
Searching activities
Application pool
To selection process
Screening of application forms
Selection for interview
Checking of reference
A) Recruitment PlanningIn Reliance Life Insurance owing to the business expansion of U.P & Uttaranchal,
the H.R department was giving a target to recruit approx 800 employees which
had to be required for the post of Sails Manager, Asst. Branch Manger, Customer
care Executive & Branch Manager.
B) Strategy Development
Reliance Life Insurance focus on to make(hire less skilled workers) and buy (hire
skilled workers and professionals) employees. Reliance Life Insurance also
focus on geographic distribution of labour market comprising. Technological
advancement has made it possible for job seekers to gain better access but for
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Approval by appropriate authority
Training
Joining (induction)
Salary closing
the post of sales manager technological qualification is not required in RLIC. The
company conduct walk-in’s at four area office which are Lucknow, Kanpur,
Varanasi and Dehradun.
The company had planned way of Referrals. In this an employee needed to fill a
‘Referral Form’ which includes personal as well as academic information about
the referred candidate.
C) Source of Recruitment
Reliance Life Insurance uses external, direct and indirect methods for the
recruitment of sales manager which are walk-in (Direct Candidates),
Advertisements(News paper and local cable channel), and Internet.
D) Selection ProcessA selection process in RLIC involves a number of steps-
Screening of application form
Selection for Interview.
Approval by appropriate authority.
Salary closing.
Joining (Induction)
1. SCREENING OF APPLICATION FORM : The real process of selection begins with the screening of application.
Prospective employees have sent their Cv’s. these Cv’s have varieties of
information about the applicants like their personal bio-data, achievements,
experience etc. Cv’s are selected on the basis of graduation in any stream
with minimum experience of one year in Insurance sector and pharmaceutical
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company. After screening of application selected Cv’s(100 per day) are line
up for the interview (50 per day).
Applications are selected on the bases of :-
1. Candidate must be graduate in any stream.
2. Candidate had working in banking sector, Insurance company with minimum
one year of experience.
3. Candidate also working in pharmaceutical company.
In two months I had screen approximately 2000 Cv’s for the post of SM and
finally 1522 Cv’s are selected for interview.
2. INTERVIEWAfter screening of application, selected Cv’s are line up for the interview. In two
months I had line up the 180 Cv’s for the interview. These interviews held at four
head offices, which are Lucknow, Kanpur, Varanasi and Dehradun. Interview was
taken by Area Manager. If Area Manager was not able to take the interview then
the interview was taken by Regional HR Manager or Assistant HR Manager or Regional Training Manager in Regional Office.
If they are also not able to take the interview , then interview was taken by HR Officer. Documents required for the interview –
1) CV’s
2) Appointment Letter of previous company.
3) Salary Slip of previous company.
4) License (advisor)
5) Commission Statement (advisor)
RLIC use one -to -one interview method. In this method only two participants are
present in the interview room. They are interviewer and interviewee.
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Checking of reference
RLIC ask the candidate to provide the names of referrers from whom more
information about the candidate can be solicited. Such information may be
related to character working etc.
The companies first approach towards recruitment of employee was Employee
Referrals:-
When recruitment is outsourced a single, entry level hire costs a minimum of Rs.
20,000, while this can go over Rs 50,000 in those with 1-3 year’s experience and
even a couple lakhs of rupees in cash of senior – level recruits. When the same
hiring is routed through employee referrals, the cost comes down by 80%. That’s
where referrals – getting employees to recommended their friends – make great
financial sense to enterprises.
The company had a planned way of Referrals. In this an employee needed to fill
a ‘Referral Form’ which included personal as well as academic information about
the referred candidate.
3) APPROVAL BY APPROPRIATE AUTHORITYOn the basis of the above steps suitable candidate are recommended for
selection by the area manager. Though such a area manager may have authority
to select a candidate finally, often it has staff authority to recommended a
candidate for selection to the appropriate authority
APPROVAL HIRERARCHY
Regional Business Head
Area Manager
Regional HR Manager/Regional Trainee Manager/
Assistant HR Manager
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HR Officer
4) FINAL SELECTIONAfter the approval of the competent authority, the selection is final and the
candidate concerned may be informed accordingly.
5) SALARY CLOSING OR SALARY NEGOTIATION
After final selection, selected candidate has been send his/her two documents
which are – Salary Slip and Appointment letter (previous company). If candidate
is working as a advisor then he send his/her commission statement and license
which is provided by IRDA. After getting the documents HR Officer offers the
salary to the selected candidate on the basis of his/her basic salary of previous
company RLIC gives 30 to 40% hike to their selected candidate on the bases of
basic salary of previous company, when the candidate accepted the offer,
he/she gets the basic salary and allowances plus annual bonus. After 2 or 3
days he/she get the offer mail or the date of joining (Induction) which is
conducted at the Life Style Hotel, Lucknow.
In this mail he/she gets the information about the documents which they carry
with them when they come to the induction.
Documents which carry with them are:-
1. Salary Slip ,
2. Appointment letter,
3. Resignation Latter,
4. 10 Photographs with blue back ground,
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5. Education Prove,
6. Berth Prove,
7. ID Prove.
6) INDUCTION/JOINING
The Company believes that all new employees MUST be given timely induction
training. This training is regarded as a vital part of staff recruitment and
integration into the working environment. This policy, associated procedures and
guidelines define the Company’s commitment to ensure that all staff is supported
during the period of induction, to the benefit of the employee and Company alike.
INDUCTION PROCESS IN RLIC
An induction process that is shaped around the individual and their job role will
help the employee reach their full potential as quickly as possible.
All staff, both full- and part-time need an induction programme. An induction
should be given at the beginning of employment and may be spread over several
weeks, or even months.
Induction processes can be written or verbal and should be presented in
conjunction with the employee handbook. The key difference is that the
handbook should be used as an ongoing reference for employee work conduct
and employee rights, while the induction programme is used as the initial tool to
familiarize the new starter with their job requirements and information about the
company and its procedures.
Failure to implement a successful induction process will leave the new employee
with a poor understanding of the company and their role within it, low morale, and
ultimately lost productivity.
Verbal or written
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The presentation of the information will be key to its success. Using a written
document will allow it to be used as a reference guide. Using a template and
tailoring it to the individual's needs will save you time in the long run, and
publishing it on the company intranet will give it the feel of a living document.
Written information can also be combined with a personal touch, and the new
employee should be personally introduced to every member of the team. If others
are to assist with the induction, create a timetable to let them know when they
are required.
Content of the induction
The induction can comprise the following:
Mission statement of the company:
This outlines the role, or purpose of the business and illustrates the overall
strategic vision.
Company history:
An account of the formation of the company, its key players and its main
achievements to date.
Company culture:
Making the new employee aware of the personality of the organization is
important if they are to fit in.
Company structure:
Explaining where the power lies and how it is distributed is a good idea. SMEs
tend to follow the unitary model, whereby the company is divided into different
functions, each reporting to the Chief Executive Officer or Managing Director.
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Job role:
Cascading down into each department you should document each person's role
and how they play a part in achieving the objectives that are set out in the
mission statement. Ensure the employee is taken through their job description
and fully understands their responsibilities and accountabilities.
Health and safety:
Ensure that the employee has read and understood the health and safety brief
outlined in the employee handbook. Check they know the location of the fire exits
and are aware of where to assemble in case of fire. The new employee should
be made aware who is qualified to administer First Aid. Any required risk
assessments should also be carried out at this stage.
Company procedures:
The new employee should be made aware of the correct procedures for all
personnel matters (e.g. applying for holiday leave, using the telephone system
and accessing standard templates).
RLIC had conducted the inductions in Life Style Hotel, Lucknow. All selected
candidates come in lucknow for Induction or training.
In induction candidate get his/ her appointment letter & joining kits. Joining kit
was file by candidate. In joining kid candidates are file their some information
which is important fore the company.
Information which are filed by candidates:-
1. Personal Information Form,
2. Information Release Form,
3. Data Reference Check Form,
4. Salary Account Declaration,
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5. Medical Insurance Data,
6. I Card Form,
7. Requisition Form For Email,
8. Business Cared Requisition Form,
9. Hardware Requisition Form,
10. Data Card Requisition Form,
11. PF/EPS Declaration/ Nomination Form,
12. PF Transfer Form,
13. Gratuity Nomination Form,
14. Term Insurance Nomination Form ,
15. CTC Allocation Plan,
16. Investment Declaration Form,
17. Data Ownership Undertaking,
18. IT Security Policy Declaration,
19. Code OF Ethics Undertaking,
20. Specimen Signature Form
SUGGESTION FOR BETTER RECRUITMENT PROCESS IN RLIC
1) The clear policy to be made for recruitment so that candidates to be recruit
carefully retained nicely and retire gratefully.
2) FEEDBACK should be timely produced in HR department by various
department.
3) FEEDBACK must be scanned and computerized regularly and should not
be manually handled, it is loss of time and efforts.
4) Separate interview hall
5) Bio-data received by HR department must be feeded in computer so that
candidates data are available on time and can be sorted in better manner.
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6) Management information system should be reported regularly to the
manager and strictly should follow SOP (Standard Operating Procedure)
formulated for recruitment function.
7) Feed back can be computerized by scanning & E-mail to the HR
department by the different department.
8) Training should be given more attention & importance of training should
understood. More training programs should be organized
9) Proper information of joining and induction date.
10)Proper coordination with interviewer and HR department.
11)Two or three days before send the name to selected candidate
FINAL SELECTION PERCENTAGE OF SALES MANAGER IN RLIC Total Initial Cv’s = 2000
Selected Cv’s = 1122
% of Initial Selected Cv’s = 56.1%
% of Initial Rejected Cv’s = 44%
Initial SelectedCv's
Initial RejectedCv's
56.1%
44%
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Selected Cv’s = 1122
Total Line-up Cv’s for Interview = 180
% of Line-up Cv’s for Interview = 16 %
% of Rejected Cv’s for Interview = 44%
Interview Lineup %
Not Selected forInterview %
16%
84%
Total Line-up Cv’s for Interview = 180
Total Selected Candidates = 15
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Total Final Selection % = 8.33 %
Total Final Rejected % = 92%
Final Selection %
RejectedCandidates%
8.33%
92%
BIBLIOGRAPHYHuman Resource Management
Gary Dessler, Biju Varkkey
Website
www.reliancelife.co.in
www.google.co.in
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