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 Recruitment and Selection in Banking Industry

International Journal of Applied Business and Economic Research

ISSN : 0972-7302

available at http: www.serialsjournals.com

© Serials Publications Pvt. Ltd.

Volume 15 • Number 19 (Part-II) • 2017

Recruitment and Selection in Banking Industry

Hari G. Krishna1 and N. Maithreyi2
1 Phd Scholar, AMET University, Chennai
2 Research Supervisor and Guide, AMET University, Chennai

Abstract: Without a sound and effective banking system in India, it cannot have a
healthy economy. The banking system of India should not only be hassle free but
it should be able to meet new challenges posed by the technology and any other
external and internal factors. For the past three decades India’s banking system
has several outstanding achievements to its credit. The most striking is its
extensive reach. It is no longer confined to only metropolitans or cosmopolitans in
India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India’s growth process.
Key words: Banking, Recruitment and Selection

1. HISTORY OF BANKING IN INDIA

The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of
Indian Banking System can be segregated into three distinct phases. They are
as mentioned below:
� PHASE I - Early phase from 1786 to 1969 of Indian Banks
� PHASE II - Nationalization of Indian Banks and up to 1991
� PHASE III - Indian Financial & Banking Sector Reforms after 1991.
PHASE I: The General Bank of India was set up in the year 1786. Next
came Bank of Hindustan and Bengal Bank.
The East India Company established
Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras
(1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India
was established which started as private shareholders banks, mostly Europeans
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
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International Journal of Applied Business and Economic Research
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1100 banks, mostly small. To streamline the functioning and activities of

commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949
as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was
vested with extensive powers for the supervision of banking in India as the
Central Banking Authority. During those day’s public has lesser confidence in
the banks. As an aftermath deposit mobilization was slow. Abreast of it the
savings bank facility provided by the Postal department was comparatively
safer. Moreover, funds were largely given to the traders.
PHASE II: Government took major steps in this Indian Banking Sector
Reform after independence. In 1955, it nationalized Imperial Bank of India
with extensive banking facilities on a large scale especially in rural and semi-
urban areas. Second phase of nationalization Indian Banking Sector Reform
was carried out in 1980 with seven more banks. This step brought 80% of the
banking segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the
Country:
• 1949: Enactment of Banking Regulation Act.
• 1955: Nationalization of State Bank of India.
• 1959: Nationalization of SBI subsidiaries.
• 1961: Insurance cover extended to deposits.
• 1969: Nationalization of 14 major banks.
• 1971: Creation of credit guarantee corporation.
• 1975: Creation of regional rural banks.
• 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.
PHASE III: This phase has introduced many more products and facilities
in the banking sector in its reforms measure. In 1991, under the chairmanship
of M Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. The
financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the Foreign
Reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure.

2. NATIONALISED BANKS IN INDIA

Banking System in India is dominated by nationalized banks. The nationalization
of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime
minister. The major objective behind nationalization
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 Recruitment and Selection in Banking Industry

was to spread banking infrastructure in rural areas and make available cheap
finance to Indian farmers.
Fourteen banks were nationalized in 1969.
Before 1969, State of India (SBI) was only public sector bank in India. SBI
was nationalized in 1955 under the SBI Act of 1955. The second phase of
nationalization of Indian banks took place in the year 1980. Seven more banks
were nationalized with deposits over 200 crores.

3. PRIVATE BANKS
All the banks in India were earlier private banks. They were founded in the
pre-independence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant
role in the banking structure. Private sector banking in India received a fillip in
1994 when Reserve Bank of India encouraged setting up to private banks as
part of its policy of liberalization of the Indian Banking Industry. Housing
Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘In principle’ approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector.
Private Banks have played a major role in the development of Indian
banking industry. They have made banking more efficient and customer
friendly. In the process they have jolted public sector banks out of complacency
and forced them to become more competitive.

4. THEORETICAL BACKGROUND OF RECRUITMENT AND

SELECTION

5.1. Meaning
Human resource Management is a management functions that helps the
manager’s to recruit, select, train
& develop members of an organization for the organisation. Human Resource
management is concerned with the people dimension in the organization.
Human Resource Management (HRM) is coined as the core aspect of
management because HRM encompasses of overall human related issues. The
concept of human resource management defined as the planning,
compensation, integration, maintenance and separation of human resource to
the end individual.
The primary objective of Human Resource Management is to ensure the
availability of a competent and willing work force to an organization.
5.2. Definition of HRM
• According to Dale Yoder “HRM is defined as “the management of human
resources is viewed as a system in which participants seeks to attain both
individual & group goals.”
• Byars and Rue define HRM as “Human resources in compasses those
activities design to provide for and coordinate the human resources of an
organization”.

5.3. Nature of HRM

� Human resource management is a process of bringing people &
organisations together so that the goals of each are met. It tries to secure
the best from people by winning their wholehearted cooperation. In short,
it may be defined as the art of procuring, developing and maintaining
competent workforce to achieve the goal of an organisation in an effective
and efficient manner.
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 Hari G. Krishna and N. Maithreyi

� It has following features:

� Pervasive force: HRM is pervasive in nature. It is present in all
organisations. It
� Permits all the levels of management in an organisation.
� Action oriented: HRM focuses attention on action, rather than on record
keeping, or written procedure or rules.
� Continuous process: According to Terry, HRM is not a one short deal. It
cannot be practised only by one hour each day or one day in a week. It
requires a constant alertness and awareness of human relations and their
importance in every day operations.
� Future oriented: Effective HRM helps an organisation to meet its goals in
the future.
� Comprehensive function: HRM is to some extent concerned with any
Organisational decision which has an impact on the workforce or the
potential workforce.
� Inter-disciplinary function: HRM is a multi disciplinary activity, utilising
knowledge and inputs drawn from, psychology, sociology, anthropology
economics, etc.
� Integrating mechanism: HRM, tries to build and maintain cordial
relationship between people working at various levels in the organisation.
� Development oriented: HRM, intend to develop the full potential of the
employee. Employee are rotated in various jobs so that they experience
and exposure.

5.4. Scope of HRM

The Indian Institute of Personal Management has specified the scope of HRM::
� Personal aspect: This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training and
development, layoff and retrenchment, remuneration, incentives,
productivity, etc.
� Welfare aspect: It deals with the working condition and amenities
such as canteen, rest, and lunch room, housing ,transport, medical
assistance, education, health and safety, recreation facility, etc.
� Industrial relations aspect: This covers union –management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.
5. Objective of HRM: The principal objectives of HRM may be listed thus:
a) To help the organisation to reach its goals.
b) To employ the skills and abilities of the workforce efficiently.
 c) To provide the organisation with well-trained and well- motivated
employees.
d) To increase to the fullest the employee’s job satisfaction and
actualisation.
e) To develop & maintain the quality of work life.
f) To communicate HR policies to the entire employee.
g) To be ethically and socially responsive to the need of society.

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 Recruitment and Selection in Banking Industry

6. REVIEW OF LITERATURE
Rod, D (1995) is of the opinion that many factors combine to make selection
and recruitment practice and research a lively area and at the forefront now of
the drive towards management excellence. As a body of knowledge, it has been
strengthened by having to prove its usefulness during the 1960s and 1970s
and now there is more realization that both excellence in recruitment and
selection, along with training, appraisal systems, and organizational
design/reengineering, together can contribute to strong organizations in the
future.
Dora, S (2003) states that recruitment and selection experiences are part
of a process of pre- entry organizational socialization, also known as
anticipatory socialization. Graduates are susceptible to such effects as their
socialization through exposure to professional employers begins during
training. Employers’ practices are thought to contribute to the formation of
realistic career expectations and the initial psychological contract between
graduates and employers. The present study found that students in traditional
professions reported greater exposure to employers than students in an
emerging profession through work activities, more proactive engagement in
recruitment events, and more extensive experience of selection processes at
similar stages of study. Greater activity, in turn, was related to career
expectations, including varying levels of commitment to and interest in the
profession and career clarity.
Lavigna, R. J, (et al) (2004) states that governments around the globe
are facing unprecedented staffing challenges. At the time when governments
need to be most adept at luring talent to public service, their ability to do so
has rarely been so constrained and complicated by economic, social and
organizational pressures. This article provides an overview of the types of
recruitment and selection initiatives already in place in many nations that can
help the world’s governments attract and retain talent. Relying heavily upon
examples from the United States and Western Europe, but also integrating
experiences from a variety of both developed and less developed countries
(LDCs), we describe a series of recruitment and selection “best practices.”
Ume-Amen (2010) has done research on the factors which benefits
organizations in outsourcing their recruitment and selection process. Based on the
literature survey the factors were identified. These factors were cost savings;
improve quality, time pressure, lack of internal staff, increased capacity,
manpower availability, easy replacements, and pool of applicants and competence
of applicants. The questionnaire designed for the study was based on the above
factors. The sample size of the study was 10 organizations. The objective of this
study was to determine different factors of outsourcing recruitment and selection
process at workplace in banking sector. According to the respondents’ opinions,
43% agree that retention ratio is higher when recruitment is done through
outsourcing firms. 29% strongly agree and 29% strongly disagree that recruitment
by outsourcing firms has an edge because of pools of applicants; skills and
expertise. 57% of respondents agree that the recruitment by outsourcing firms has
an edge because of quality and competence. 86% of respondents agree that the
recruitment by outsourcing firms has an edge because of easy replacement. 43%
respondents agree that improve quality is a factor of outsourcing the recruitment
and selection process which had been rated high and 14% respondents agree that
lack of internal staff capabilities are a factor of outsourcing the recruitment and
selection process. This factor has been rated the lowest. All of the above factors,
easy replacement was considered the highest most variable for the outsourcing
firms and pools of applicants and skills the least one variable.

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 Hari G. Krishna and N. Maithreyi

Zaharie, M (et al) (2013) states that job recruitment and selection practices
represent a prerequisite for companies aiming for competitive and skilled
employees. The purpose of this paper is to empirically explore and compare the
employee recruitment and selection practices in small and medium organizations.
An online quantitative survey was applied on 92 Romanian organizations (25 of
small and 67 of medium size), based on a questionnaire which explored the
recruitment methods, the employee selection practices and job screening criteria.
The results show that while differences exist between these two categories of
organizations, these are not that intense. When recruiting, small organizations
focus on recommendations based methods. Medium organizations use more
selection steps when hiring and render greater importance to the job selection
criteria, especially to candidates’ attitude, motivation and dedication to work,
generic skills, lifelong learning, resistance to stress, and computer skills. The
findings show that both the small and medium organizations use less valid
employment practices, which imply lower short term costs, but may involve higher
costs on the long run. The present research provides useful findings for the
management of small and medium organizations, but also for higher education
institutions and graduates.
Alka, R (2014) states that recruitment and selection is the important
function of HRM. Proper recruitment and selection provide a strong basic
structure/ foundation to an organization. Its basic objective is to attract and
appoint a person with proper and adequate skills and qualification at the
appropriate/ best fitted job. Modern era is techno savvy. Online recruitment
and selection process help the organization to attract and manage the
competent workforce. The main objective of this article is to understand the
meaning and process of online recruitment and selection process. Many online
recruitment agencies are also emerging as a popular and reliable source of
recruitment. Some of them are discussed in the article. Special focus is given
on the online recruitment and selection process adopted by IBPS. Use of
information technology in recruitment and selection process provides benefits
to both the recruiter and the job seekers in many ways.
Bagul, D B (2014) is states that research little attempt is made to see its
satisfactory level. The recruitment activity is analyzed internally, that means
from the view of the departmental heads, which are, involved in the process
itself and externally that means from the candidates perspective. From the
study of Recruitment and Selection at Rathi, and by analyzing the process
conclusion is drawn. The candidates are satisfied with the policy of Rathi, but
there is little scope to improve the satisfactory level of Recruitment and
Selection process from the internal point of view that means among the
departmental head. Recruitment activity is one of the prime activities of any
growing organization; therefore, it is very necessary for any organization to
check whether this process is going on smoothly or requires some change. As
performance of the whole group is ultimately depends on the efficiency of the
employees of the group. Therefore, to make sure the recruited candidate is a
right candidate is the prime responsibility of the HR people. Recruitment has
various impacts on other HR activity so it is very necessary to make it more
effective. By providing little attention towards improving the communication
between Departmental Head & H.R., will definitely help the organization to
reach its goal in near future.
Rathore, N.S (2014) states that human resource management is the
management of employee’s skill, knowledge abilities, talent, aptitude, creativity,
ability etc. different terms are used for denoting Human Resource Management.
They are labor management, labor administration, labor management relationship,
employee –employer relationship, industrial relationship, human capital
management, human assent management etc. In simple sense, human resource
management means employing people, developing their
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 Recruitment and Selection in Banking Industry

resources, utilizing, maintaining and compensating their services in tune with the
job and organizational requirements Human Resource Management is also a
strategic and comprehensive approach to managing people and the workplace
culture and environment. Effective HRM enables employees to contribute
effectively and productively to the overall company direction and the
accomplishment of the organization’s goals and objectives. Human Resource
Management is moving away from traditional personnel, administration, and
transactional roles, which are increasingly outsourced. HRM is now expected to
add value to the strategic utilization of employees and that employee programs
impact the business in measurable ways. The new role of HRM involves strategic
direction and HRM metrics and measurements to demonstrate value. Recruitment
represents the first contact that a company makes with potential employees. It is
through recruitment that many individuals will come to know a company, and
eventually decide whether they wish to work for it. A well-planned and well-
managed recruiting effort will result in high quality applicants, whereas, a
haphazard and piecemeal effort will result in mediocre ones. High-quality
employees cannot be selected when better candidates do not know of job
openings, are not interested in working for the company and do not apply. The
recruitment and selection process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide
enough information about the jobs so that applicants can make comparisons with
their qualifications and interests, and generate enthusiasm among the best
candidates so that they will apply for the vacant positions. In order to attract
people for the jobs, the organization must communicate the position in such a way
that job seekers respond. To be cost effective, the recruitment process should
attract qualified applicants and provide enough information for unqualified
persons to self-select themselves out.

7. STATEMENT OF THE PROBLEM

Human resource is a vital element of any company. The success of the company
is depended on the quality of the human resource working in it. Therefore, to
get the qualitative human recourse a good, practical and effective human
recruitment and selection process is essential. This project is wholly done to
study and understand the recruitment and the selection process.

8. OBJECTIVES OF THE STUDY

� To study the profile of the employees inducted through the recruitment
process.
� To know the effective media that disseminates vacancy information.
� To study the effectiveness of interview technique in recruitment and
selection process.

9. SCOPE OF THE STUDY

� This study provides opportunity for research and survey on recruitment
and selection procedures for employees in solving troublesome structure of
HRM.
� Innovation and creativity are blended with the organization culture
through the study of attracting and obtaining applications.
� An effective approach to recruitment can help a company successfully
compete for limited human resources.
� Recruitment lends itself as a potential source of competitive advantage to a
firm.
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International Journal of Applied Business and Economic Research
 Hari G. Krishna and N. Maithreyi

� The study will play a vital role in identifying typical responses when
recruitment fails to meet organizational needs for talent. The response will
be like raise entry-level pay scales.
� The effectiveness of the recruitment process can play a major role in
determining the resources that must be expended on other HR activities
and their ultimate success.
10. RESEARCH METHODOLOGY
Research work follow the vast reading of literature, which is already available
about the topic, which help to form a clear idea before the research starts,
before starting the progress “Recruitment and Selection” reference were done
to collect the information about the topic which helped immensely while doing
the study. The details of what are discussed under the following heads namely.
• Purpose;
• Methodology;
• Conclusion.
Purpose: The first step of the research is literature survey. In literature
survey the specific areas and issues upon what data has to be collected is
decided based on the objectives of the study.
• To know the recent happening and trends in field of recruitment.
• To get more information from the previous studies.

Methodology
Adopting descriptive research method, for this both primary data and
secondary data are collected. Primary data is collected by using questionnaire
and personal interview, secondary data is collected from the brochures of the
agency, magazines, books and websites has to be collected is decided based on
the objectives of the study.
• To know the recent happening and trends in field of recruitment.
• To get more information from the previous studies

11. TYPE OF RESEARCH

The type of research adopted is Descriptive Research. Descriptive study is a fact-
finding investigation with adequate interpretation. It has focus on particular as peels
or dimensions of the problem studied. It is designed to gather description, information
and provides information for formulating more sophisticated studies.

12. COLLECTION OF DATA

‘Data’ may be defined as the facts presented to the researcher from the study’s
environment. This part of the report describes the specifics of gathering the
data. Its contents depend on the selected design. Survey work generally uses a
team with field and central supervision. In an experiment, we would want to
know about subject assignment to groups, the use of standardized procedures
and protocols, the administration of tests or observational forms, manipulation
of the variables and so forth.
Typically, researcher would include a discussion on the relevance of
secondary data that guided the decisions.
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 Recruitment and Selection in Banking Industry

Primary data: Primary data collection forms the first hand information got
from respondent itself and the information is collected through Question
series, interview schedules and observations. Primary data are sought for their
proximity to the truth and control over error. This data have been used to study
and select the best source of recruitment in MSIL. The questionnaires have
been prepared to study it and the sample size was 50.
Secondary data: This is a data collecting method through other sources
than from respondents. It is of collecting information through personal
documents, diaries, and abstracts for the purpose of present study. The
investigator used primary method is collecting data through Questionnaires.
Studies made by others for their own purpose represent secondary data.
Finally, data reflect their truthfulness by closeness to the phenomena.
Secondary data have had at least one level of interpretation inserted between
the event and its recording. Primary data are sought for their proximity to the
truth and control over error. These cautions remind us to use care in designing
data collection procedures and generalizing from results.

13. TOOLS USED FOR TESTING

Interviews using questionnaire.

14. ANALYTICAL TOOLS

14.1. Percentages
Percentages refer to a special kind of ratio. Percentages are used in making
comparison between two or more series of data. Percentages are used to
describe relationships between the series of data. Finding the relative
differences becomes easier through percentages. It is expressed as
No. of respondents
Percentage = ———————————————————
* 100 Total number of
respondents
15.2. Visual aid
� Pie Diagram
A Pie diagram is a pictorial representation of a statistical data with several
subdivisions in a circular form. It consists of a circle sub-divided into
several sectors by radius. The area of sector is proportional to the values of
the components.
15. SAMPLE SIZE FOR THE STUDY
The researcher numbering 60 respondents for the purpose of study included
all employees working in the organization.
 16. INSTRUMENT- QUESTIONNAIRE TECHNIQUE
Questionnaires have been used to collect data from 60 personnel from the
management cadre. It included open – ended questions and many other questions
having multiple options as answers. The data collected
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 Hari G. Krishna and N. Maithreyi

was classified and tabulated for the purpose of analysis. Simple statistical tools
were used for analysis. Percentage was calculated for the purpose of
generalization. Charts, graphs and diagrams have also been drawn based on
the tabulation.
Inferences were drawn and conclusion made data has also been collected
from the organization HR manual, website and journals.

17. LIMITATIONS OF THE STUDY

This topic is often handled with ambivalence. It is not ignored, feeling that
mentioning limitations detracts from the impact of the study; this attitude is
unprofessional and possibly unethical. The section is a thoughtful presentation
of significant methodology or implementation problems. An even-handed
approach is one of the hallmarks of an honest and competent investigator. All
research studies have their limitations, and the readers need aid in judging the
study’s validity.
• The time of study is comparatively less.
• Workers are very busy, especially the top-level management personnel
as they are busy, they didn’t responded for investigation.
• Sample size may become very small when respondents are 50.
• The majority questions in the questionnaire were limited to the
executives only.
• Time constraint is another limitation of the study.

18. DATA ANALYSIS AND INTERPRETATION

Table 1
Age group of the respondents
Age group No. of Respondents % of
Respondents
24-29 8 13%
30-35 8 13%
36-41 16 27%
More than 41 28 47%
Total 60 100%
 Graph 1: Age group of the respondent

International Journal of Applied Business and Economic Research 80

 Recruitment and Selection in Banking Industry

Interpretation
From the above tabular and graphical(1) representation, its can be clearly seen
that 13% of the respondents are between 24-29 years, 13% of the respondents
are between 30 to 35 years, 27% of the respondents are between 36 to 41
years and 47% of the respondents are above 41 years. It is clear that more
than 47% of the respondents are above 41 years.

Table 2
Educational qualification of the respondents:
Education Qualification No. of Respondents % of
Respondents
Pre-degree 5 8.3%
Graduate 15 25%
Post- graduate 40 66.7%
Total 60 100%

Graph 2: Education of respondents

Interpretation
From the above tabular and graphical (2) representation, it is clearly seen that
8.3% are pre-degree, 25% are
Graduates, and 66.7% are postgraduates means the educational qualification
of respondent is excellent.
Respondent are highly qualified, hence there is no much problem in dealing
with questionnaire.

Table 4.3
Work experience of the respondents
Years of Experience No. of Respondents % of
Respondents
Below 10 40 66.6%
Between 10 to 20 12 20%
Above 20 8 13.3%
Total 60 100%

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Graph 3: Work experience of the respondents

Interpretation
Tabular and graphical (3) representation of work experience of the respondent
shows that the experience of the respondents who are in the senior post is
above 20 years, which also means that apart from having quality education
they also are very experienced and hence the views given by them are of high
importance. From the above analysis it is clear that 13.3% of the employees
are above 20 year experience and 66.6% are below 10 years experience.
Table 4.4
Different sources of knowing the job vacancy
Particulars No. of Respondents % of
Respondents
Advertisement 24 40%
Consultancy 8 13%
Friends and Relatives 8 13%
Others 20 34%
Total 60 100%

Graph 4: Different sources of knowing the job vacancy

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 Recruitment and Selection in Banking Industry

Interpretation
Tabular and graphical (4) representation indicates 40% of employees come to
know about the job opportunity through advertisement given by the company
in the leading news papers. Consultants accounts to be 13%, 13% of them
come to know about the job opportunities through friends and relatives and
other like employments exchanges share percent of 34%.

Table 5
Source of better opportunities and work culture
Particulars No. of Respondents % of
Respondents
Image of the company 32 53%
Work environment 12 20%
Better opportunity 12 20%
Salary 4 7%
Total 60 100%

Graph 5: Source of better opportunities and work culture

Interpretation
Tabular and graphical (5) representation shows the position of the better
opportunities of bank during the period of salary. 20% of the respondents
depend upon the better opportunities, 53% of respondents under image of the
company, 7% of the respondents depend upon the salary, and 20% of the
respondents depend upon the work environment. According to analysis, most
of the respondents working on the image of the company and better
opportunity.

Table 6
Appointment information
Particulars No. of Respondents % of
Respondents
Yes 60 100%
No 0 0%
Total 60 100%

83 International Journal of Applied Business and Economic Research

 Hari G. Krishna and N. Maithreyi

Graph 6: Appointment information

Interpretation
Tabular and graphical (6) representation shows the present position of selected
respondents relative to details above their appointments, date, time, and other.
All of them respondents are happy his appointment information. From the
above analysis, it is very clear that all the respondents are happy with the
appointment information.
Table 7
Relevance of questions in Interview
Particulars No. of Respondents % of
Respondents
Yes 100 100%
No 0 0%
Total 100 100%

Graph 7: Graph showing the relevance of questions in interview

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International Journal of Applied Business and Economic Research
 Recruitment and Selection in Banking Industry

Interpretation
Tabular and graphical (7) representation reveals that most of them employee’s
i.e. 100% of them have told that the questions asked in the interview were
relevant to job. From the above analysis, it is very clear that the question
asked in the interview will be relevant to the job at bank.
Table 8
Types of Selection
Particulars No. of Respondents % of
Respondents
Written test 20 33%
Practical test 16 27%
Oral interview 24 40%
Others 0 0%
Total 60 100%

Graph 8: Types of Selection

Interpretation
Tabular and graphical (8) representation shows 40% of the respondents went
through only viva & interview and 33% of them went through written test, 27%
of them went through practical test and others. It could be said be most of the
candidates who applied to bank faced viva and interview only, a few of them
faced written test and practical test.
Table 9
Atmosphere during the interview
Particulars No. of Respondents % of
Respondents
Pleasant 60 100%
Tense 0 0%
Total 60 100%
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International Journal of Applied Business and Economic Research
 Hari G. Krishna and N. Maithreyi

Graph 9: Atmosphere during the interview

Interpretation
Tabular and graphical (9) representation reveals that 100% of the employee
said that the atmosphere during the interview was pleasant.
Bank helps prospective employee to face interview in a very cool manner
so they don’t feel nervous and hesitation.
Table 10
Opinion about the type of interview
Particulars No. of Respondents % of
Respondents
Personal interview 28 47%
Panel interview 24 40%
Stress interview 0 0%
Others 8 13%
Total 60 100%

Graph 10: Opinion about the type of interview

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 Recruitment and Selection in Banking Industry

Interpretation
Tabular and graphical (10) representation shows the 47% of employees of banks
have gone through personal interview and 40% of them have gone through panel
interview and others share 13%. Thus bank adopts both personal and panel
interview technique to interview most of its candidates who apply for jobs.

Table 11
Opinion about the way of interview
Particulars No. of Respondents % of
Respondents
Good 32 53%
Fair 16 27%
Satisfactory 12 20%
Unsatisfactory 0 0%
Total 60 100%

Graph 11: Opinion about the way of interview

Interpretation
Tabular and graphical (11) representation reveals that about 53% of the
employees feel that the way in which the interview was conducted in a good
manner, 27% of the employee feel that the interview was up to fair, 20% of the
employee feel that the interview was up to satisfactory level, and nobody is
unhappy with regard to conducting interview. It can be concluded that all
employees of banks are satisfied with the way in which the interview have
been conducted.

Table 12
Medical examination
Particulars No. of Respondents % of
Respondents
Yes 48 80%
No 12 20%
Total 60 100%

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Graph 12: Medical examination

Interpretation
Tabular and graphical (12) representation reveals that 80% of the employees
have undergone medical examination and only 20% of them have not faced
medical examination. We can conclude that majority of the employees in banks
have undergone the medical examination before joining the company.
Table 13
Selection process
Particulars No. of Respondents % of
Respondents
Interview 44 73%
Testing 16 27%
Total 60 100%

Graph 13: Graph showing the selection process

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 Recruitment and Selection in Banking Industry

Interpretation
Tabular and graphical (13) representation reveals that 73% of the employees
working in the banks have opinion that, interview was being well planned and
administered and 27% of the employees had said that testing was being well
planned and administered in selection process. From the above analysis it is
very clear that interview method has been better planned and administered in
the banks.

Table 4.14
Awareness of the selection process in bank
Particulars No. of Respondents % of
Respondents
Yes 40 67%
No 20 33%
Total 60 100%

Graph 14: Awareness of the selection process in bank

Interpretation
Tabular and graphical (14) representation shows 67% of employees are aware
of the selection process in banks and only 33% of employees do not know
aware of the selection process in banks. We can conclude that more number of
the employees in banks know the selection process.
Table 15
Sources from which respondent got this information
Particulars No. of Respondents % of
Respondents
Company Employees 16 27%
Company Brochures 12 20%
Other sources 32 53%
Total 60 100%
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Graph 15: Sources from which respondent got this information

Interpretation
Tabular and graphical (15) representation shows 27% of employees got the
information through company employees, 20% of employees got the
information through company broachers, and 53% of employees got the
information through other sources. We can conclude that most of employees
got the information through other sources.

Table 16
Reasons for attractiveness of job
Particulars No. of Respondents % of
Respondents
Pay Scale 0 0%
Job Security 40 67%
Welfare Opportunity 4 6%
Future Prospect 16 27%
Total 60 100%

Graph 16: Reasons for attractiveness of job

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 Recruitment and Selection in Banking Industry

Interpretation
Tabular and graphical (16) representation reveals that 67% of employees have
joined this company because of job security, 27% of them for future prosperity and
6% of them for welfare opportunity. From the above analysis it is very clear that
more number of employees have joined banks because of job security.

Table 17
Opinion of the respondents towards the presence of the pre-planned recruitment
policy in the organization
Opinion of Respondents No. of Respondents % of
Respondents
Yes 48 80%
No 12 20%
Total 60 100%

Graph 17: Percentage of presence of pre-planned recruitment policy in the

organization

Interpretation
Tabular and graphical (17) representation reveals that, Banks are following
pre-planned recruitment policy because 80% of respondents responded for the
presence of the policy in the organization. This says that pre- planned
recruitment policy based on corporate goals, may avoid hasty or ill-considered
decision and may go a long way to man the organization with the right type of
personnel.

Table 18
At time of selection are you aware of the job description
Particulars No. of Respondents % of
Respondents
Yes 36 60%
No 24 40%
Total 60 100%

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Graph 18: At time of selection is you aware of the job description

Interpretation
Tabular and graphical (18) representation shows 60% of employees aware of
the job description at the time of selection , and 40% of employees do not
aware of the job description at the time of selection. From the above analysis,
it is very clear that more number of employees aware of the job description at
the time of selection.
Table 19
Awareness of job specification
Particulars No. of Respondents % of
Respondents
Yes 40 67%
No 20 33%
Total 60 100%

Graph- 19: Awareness of job specification

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Interpretation
Tabular and graphical (19) representation shows 67% of employees aware of
the job specification at the time of selection and 33% of employees do not
aware of the job specification at the time of selection. From the above analysis,
it is very clear that more number of employees are aware of the job
specification at the time of selection.

Table 20
Implementing the reservation policy
Particulars No. of Respondents % of
Respondents
Yes 60 100%
No 0 0%
Total 60 100%

Graph 20: Knowledge about the reservation policy

Interpretation
Tabular and graphical (20) representation shows 80% of the employees know
the reservation policy and 20% of the employees do not know the reservation
policy. It can be concluded that most of the employees know the reservation
policy.

Table 21
Reservation policy affecting the quality of recruitment and selection
Particulars No. of Respondents % of
Respondents
Yes 48 80%
No 12 20%
Total 60 100%
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Graph 21: Reservation policy affecting the quality of recruitment and selection

Interpretation
Tabular and graphical (21) representation shows the 80% of employees said
that reservation policy is affecting the quality of recruitment and selection and
20% of employees said that reservation policy is not affecting. Reservation
policy is affecting the quality of recruitment and selection process.

Table 4.22
Rates of induct in efficiency in present recruitment policy of the Banks
Opinion rates No. of Respondents % of
Respondents
Highly 13 22%
Moderately 41 68%
Not at all 06 10%
Total 60 100%
Graph 22: Rates of induct in efficiency in present recruitment policy of
Banks

Interpretation
Tabular and graphical (22) representation reveals that 68% of the respondents
have rated moderately as their opinion towards the increase in efficiency of the
organization’s present recruitment policy. That means the present recruitment
policy is good but it still needs improvement.
Table 23
Rate of opinions of respondents regarding the avoidance of external influence in
their recruitment process
Opinion rates No. of Respondents % of Respondents
Excellent 12 20%
Very good 14 23%
Good 30 50%
Poor 04 7%
Total 60 100%

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 Recruitment and Selection in Banking Industry

Graph 23: Rate of opinions of respondents regarding the avoidance of external

influence in their recruitment process

Interpretation
Tabular and graphical (23) representation reveals that 50% of respondents are
inclined towards the option good. It says that there is good avoidance of
external influence in their recruitment process. External influence in their
recruitment process is avoided.
Table 24
Means of communication
Particulars No. of Respondents % of
Respondents
Telephone 10 16.66%
E-mail 35 58.3%
Telegram 0 0%
Postal mail 15 25%
Total 60 100%

Graph 24: Graph Means of communication

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Interpretation
Tabular and graphical (24) representation show 25% of employees were
intimated about their interview or selection through postal mail, 16.66% of
employees were intimated about their interview or selection through
telephone, and 0% of employees were intimated about their interview or
selection through telegram. Most of the employees were intimated about the
interview through E-mail.

FINDINGS
1. As per the survey, it is known that 47% of the respondents are above 41
years.
2. About 27% of respondents got the information through company
employees and 53% of the employees got the information through other
sources regarding recruitment.
3. About 73% of employee’s are graduates.
4. About 40% of respondents were having more than 20 years of experience
in the working field.
5. From the survey, it is noted that 40% of respondents came to know about
the vacancy through advertisement and 13% of respondents were through
consultancy and 34% of respondents were through others agency.
6. The main reasons for prospective employees being attracted towards jobs
with banks were image of the bank, good working environment and better
opportunities for growth.
7. All of the respondents were happy with the job appointment information
regarding interview date, time and mode of correspondence.
8. Most 100% of the employees has told that the questions asked in the
interview were relevant to the job.
9. Most 73% of the employees said that both written test and oral interview
was conducted for them. In selection process, most of the employees had
gone through 2 stages.
10. Majority 100% of the employees said that the environment during the
interview was pleasant.
11. Most 87% of the employee said that both Personal interview and Panel
interview was conducted for them.
12. Majority of the employees i.e. 80% of the employees had undergone
medical examination.
13. 73% of respondents had said that interview method is being well planned
and administered in selection process.
14. Majority of the respondents have joined this company because of job
security and 27% of respondents for future prosperity.
15. From the survey, it is noted 60% of the employees are aware of the job
description at the time of selection.
16. Majority of the respondents are aware of the job specification at the time
of selection.
17. Avoiding external influence in recruitment process in banks was good.
18. Majority of the employees were intimated about their interview or
selection through E mail.

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 Recruitment and Selection in Banking Industry

CONCLUSION
From this study on the effectiveness recruitment and selection process reveals
that the banks are mainly going with wide distributions of advertisement for
recruitment. Banks are getting right person to the right job to meet the
organizations requirements and to retain the employees. It can be concluded
that the recruitment procedure of the banks are satisfactory and effective.
According to the job description and job specification, interview methods vary
from job to job. Majority of the employees joined the banks just because job
security and future prospective. To face the future challenges, banks should
take steps to recruit talented young people.

RECOMMENDATIONS
1) Banks must view on both individual’s and company’s needs assessment
while hiring people. This enables the employees to be more satisfied with
their work.
2) Banks must hire candidates through external source of recruitment, so that
there is a pump of new blood to the organization. This helps in
improvement of company’s creativity.
3) Banks should take into account the external factors of recruitment process.
The external factors are demand and supply of specific skills, labour
market, unemployment, legal and political considerations etc.
4) Banks should make efforts to effectively communicate to the employees, so
that they are clear about the purpose / goal / objectives of the selection
process when the respondents are recommended for recruitment.
5) To sustain in the competitive corporate world, the banks should also search
for alternatives of recruitment, such as employee learning, out sourcing
and temporary employment etc.
6) Banks should focus on e-recruitment for cost saving, speed enhancement
and also time saving.
7) Evaluation of recruitment and selection must be done, to know the
effectiveness of job analysis in the organization.

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Publication, 2008.
Human Resources Development, Jennifer Joy-Matthews, 2004.
Personnel Management: The Utilization of Human Resources, Herbert J. Chruden, 1980.

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