A Study on Recruitment & Selection

CHAPTER -1

INTRODUCTION

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INTRODUCTION

MEANING:

Recruitment is under tool as the process of searching and obtaining applications

for jobs, from among the right people can be selected. Recruitment is only one of the
steps in the entire employment process.

DEFINITIONS OF RECTUITMENT:

“A process to discover the sources of manpower to meet the requirements of the

staffing schedule and to employee effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient work force.

“The process of searching for prospective employees and stimulating them to

apply for jobs in the organization”

-------- Edwin B. Flippo

“Recruitment is the process of finding and attracting capable applicants for

employment. The process begins when new recruits are sought and ends when their
applicants are submitted. The result is the pool of applicants from which new employees
are selected”.

OBJECTIVES OF RECRUITMENTS:

 To attract people with multidimensional skills and experiences that suits the
present and future organizational strategies.
 To induct outsiders with a new prospective to lead the company.
 To infuse fresh blood at all the levels of the organization.
 To develop an organizational culture that attracts competent people to the
company.
 To search people whose skills fit the company’s values.
 To devise methodologies for assessing psychological
 To seek out non-conventional development grounds of talent.

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 To design entry pay that competes on quality but not on quantum.

 To anticipate and find people for positions that do not exist year.

RECRUITMENT PROCESS:

The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the competitive
strength and the strategic advances for the organizations. Recruitment process involves a
systematic procedure from sourcing the candidates to arranging and conducting the
interviews and requires many resources many resource and time. A general recruitment
process is as follows:

IDENTIFYING THE VACANCY:

The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:

 Posts to be filled
 Number of persons
 Duties to be performed
 Qualifications required
 Preparing the job description and person specification.
 Locating and developing the resources of required number and type of employees.
 Short-listing and identifying the prospective employee with required
characteristics.
 Arranging the interviews with the selected candidates.
 Conducting the interview and decision making.
 The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.

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MEANING OF RECRUITMENT:

According to Edwin B. Flippo, “Recruitment is the process of searching the

candidates for employment and stimulating them to apply for jobs in the organization”.
Recruitment is the activity that links the employers and the job seekers. A few definitions
of recruitment are:

A process of findings and attracting capable applicants for employment. The

process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of a applications from which new employees are selected.

It is the process to discover sources of manpower to meet the requirement of

staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilities effective selection of an efficient working force which
helps create a pool of prospective employees for the organization so that the management
can select the right candidate the selection process.

Recruitment of candidates is the function preceding the selection, recruitment is

a continuous process whereby the firm attempts to develop a pool of qualified applicants
for the future human resources needs even through specific vacancies do not exit.
Usually, the recruitment process starts when a manger initiates an employee requisition
for a specific vacancy or an anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES:

PLANNED:

The needs arising from changes in organization and retirement policy.

ANTICIPATED:

Anticipated needs are those movements in personnel, which an organization can

predict by studying trends in internal and external environment.

UNEXPECTED:

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Resignation, deaths, accidents, illness give rise to unexpected needs. Attract

and encourage more and more candidates to apply in the organization. Create a talent
pool of candidates to enable the selection of best candidates for the organization.
Determine present and future requirement of the organization in conjunction with its
personnel planning and job analysis activities. Recruitment is the process which links the
employers with the employees. Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of

visibly under qualified or overqualified job applicants. Help reduce the probability that
job applicants once recruited and selection will leave the organization only after a short
period of time. Meet the organization legal and social obligations regarding the
composition of its workforce. Begin identifying and preparing potential job applicants
who will be appropriate candidates. Increase organization and individual effectiveness of
various recruiting techniques and sources for all types of job applicants

PURPOSE & IMPORTANCE OF RECRUITMENT

SOURCES OF RECRUITMENT

EXTERNAL
INTERNAL
 Press advertisements
 Transfers  Educational institutes
 Promotions  Placements agencies/
 Up grading outsourcing
 Demotion  Employment
 Retired employees exchanges
 Retrenched employees  Labour contractors
 Dependents and relatives  Recruitment at
Of deceased employees. factory gate

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INTERNAL SOURCES:

1. TRANSFERS: The employees are transferred from one department to another

according to their efficiency and experience

2. PROMOTIONS: The employees are promoted from one department to another

with more benefits and greater responsibility based on efficiency and experience.

3. DEMOTIONS: Others are upgrading and demotion of present employees

according to their performance.

4. RETIRED EMPLOYEES: Retired and retrenched employees may also be

recruited once again in case of shortage of qualified personnel or increase in load
of work. Recruitment such people save time and costs of the organizational
culture and the policies and procedures.

5. DEPENDENCE & RELATIVES OF DECREASED EMPLOYEES: The

depends and relatives of deceased employees and disabled employees are also
done by many companies so that the members of the family do not become
dependent on the mercy of others.

EXTERNAL SOURCES

1. PRESS ADVERTISMENTS:

Advertisements of the vacancy in newspapers and journals are a widely

used source of recruitment. The main advantage of this method is that it has a
wide reach.

2. EDUCATIONAL INSTITUTES:

Various management institutes, engineering colleges, medical colleges etc.

are a good source of recruiting well qualified executives, engineers, medical
staff etc. They provide facilities for campus interviews and placements. This
source is known as Campus Recruitment.

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3. PLACEMENT AGENCIES:

Several private consultancy firms perform recruitment functions on behalf

of client companies by charging a fee. These agencies are particularly suitable
for recruitment of executives and specialists. It is also known as RPO
(Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES:

Government establishes public employment exchanges throughout the

country. These exchanges provide job information to job seekers and help
employers in identifying suitable candidates.

5. LABOUR CONTRACTORS:

Manual workers can be recruited through contractors who maintain close

contracts with the sources of such workers. This source is used to recruit labour
for construction jobs.

6. PRESS ADVERTISMENTS:

Advertisements of the vacancy in newspapers and journals are a widely

used source of recruitment. The main advantage of this method is this method is
that it has a wide reach.

7. EMPLOYEE REFERRALS/ RECOMMENDATIONS:

Many organizations have structured system where the current employees

of the organization can refer their friends and relatives for some position in their
organization. Also, the office bearers of trade unions are often aware of the
suitability of candidates. Management can inquire these leaders for suitable jobs.
In some organizations these are formal agreements to give priority in
recruitment to the candidates recommended by the trade union.

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8. RECRUITMENT AT FACTORY GATE:

Unskilled workers may be recruited at the factory gate these may be

employed whenever a permanent worker is absent. More efficient among these
may be recruited to fill permanent vacancies.

FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is affected and governed by a mix

of various internal and external forces. The internal forces or factors are the factors which
cannot be controlled by the organization. And the external factors are those factors
affecting recruitment function of an organization are:

FACTORS AFFECTING RECRUITMENT

EXTERNAL FACTORS INTERNAL FACTORS

 Supply and demand  Recruitment policy

 Labour Market  Human resource
 Image/Goodwill planning
 Political-social-legal  Size of the firm
Environment  Cost of recruitment
 Unemployment rate  Growth and expansion
 Competitors

INTERNAL FACTORS:

1) RECRUITMENT POLICY:
The recruitment policy of an organization specifies the objectives of recruitment
and provides a framework for implementation of recruitment programme. It may

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involve organizational system to be developed for implementing recruitment

programmes and procedures by filling up vacancies with best qualified people.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
2) HUMAN RESORCE PLANNING:
Effective human resource planning helps in determining the gaps present
in the existing manpower of the organization. It also helps in determining the
number of employees to be recruited and what qualification they must possess.
3) SIZE OF THE FIRM:
The size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operations and expand its business, it will
think of hiring more personnel, which will handle its operations.
4) COST:
Recruitment incur cost to the employer, therefore, organizations try to
employ that source of recruitment which will bear a lower cost of recruitment to
the organization for each candidate.
5) GROWTH ANDEXPANSION:
Organization will employ or think of employing more personnel if it is
expanding its operations.
EXTERNAL FACTORS:
The external forces are the forces which cannot be controlled by the
organization. The major external forces are:
1. SUPPLY AND DEMAND:
The availability of manpower both within and outside the organization is an
important determinant in the recruitment process. If the company has a demand
for more professionals and there is limited supply in the market for the
professionals demanded by them special training and development programs.
2. LABOR MARKET:

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Employment conditions in the community where the organization is located will

influence the recruiting efforts of the organization. If there is surplus of manpower
at the time of recruitment, even informal attempts at the time of recruiting like
notice boards display of the requisition or announcement in the meeting etc will
attract more than enough applicants.
3. IMAGE/ GOODWILL:
Image of the employer can work as a potential constraint for recruitment. An
organization with positive image and goodwill as an employer finds it easier to
attract and retain employees than an organization with negative image. Image of a
company is based on what organization does and affected by industry. For
example finance was taken up by fresher MBA’s when many finance companies
were coming up.
4. POLITICAL-SOCIAL-LEGAL ENVIRONMENT:
Various government regulations prohibiting discrimination in hiring and
employment have direct impact on recruitment practices. For example,
government of India has introduced legislation for reservation in employment for
scheduled castes, scheduled tribes, physically handicapped etc. also, trade unions
play important role in recruitment. This restricts management freedom to select
those individuals who it believes would be the best Performers. If the candidate
can’t meet criteria stipulated by the union but union regulations can restrict
recruitment sources.
RECRUITMENT POLICY OF A COMPANY
In today’s rapidly changing business environment, a well defined recruitment
policy is necessary for organizations to respond to its human resource requirements in
time. Therefore, it is important to have a clear and concise recruitment policy in places,
which can be executed effectively to recruit the best talent pool for the selection of the
right candidate at the right place quickly. Creating a suitable recruitment policy is the first
step in the efficient hiring process. A clear and concise recruitment policy helps ensure a
sound recruitment process.
It specifies the objectives of recruitment and provides a framework for
implementation of recruitment programmed. It may involve organizational system to be
developed for implementing recruitment programmers and procedures by filling up
vacancies with best qualified people.

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COMPONENTS OF THE RECRUITMENT POLICY

The general recruitment policies and terms of the organization
Recruitment services of consultants
Recruitment of temporary employees
Unique recruitment situations
The selection process
The job descriptions
The terms and conditions of the employment
A recruitment policy of an organization should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with
dignity and respect.
Unbiased policy
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weight age during selection given to factors that suit organization needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment
relationship.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors
Government policies on reservations
Preferred sources of recruitment
Need of the organization.
Recruitment costs and financial implications.
RECENT TRENDS IN RECRUITMENT
OUTSOURCING:
In India, the HR processes are being outsourced from more than a decade now.
A company may draw required personnel from outsourcing firms. The outsourcing firms
help the organization by the initial screening of the candidates according to the needs of
the organization and creating a suitable pool of talent for the final selection by the

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organization. Outsourcing firms develop their human resource pool by employing people
for them and Make available personnel to various companies as per their need. In turn,
the outsourcing firms or the intermediaries charge the organizations for their services.
Advantages of outsourcing are:
 Company need not plan for human resource much in advance.
 Value creation, operational flexibility and competitive advantage.
 Turning the management’s focus to strategic level processes of HRM
 Company is free from salary negotiations, weeding the unsuitable resumes/
candidates.
 Company can save a lot of its resource and time.

POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by
the organizations today. Poaching means employing a competent and experienced persons
already working with another reputed company in the same or different industry; the
organization might be a competitor in the industry. A company can attract talent from
another firm by offering attractive pay packages and other terms and conditions, better
openly talked about. Indian software and the retail sector are the sectors facing the most
serve burnt of poaching today. It has become a challenge for human resource managers to
face and tackle poaching, as it weakens the competitive strength of the firm.

E- RECRUITMENT
Many big organizations use internet as a source of recruitment. E-Recruitment is
the use of technology to assist the recruitment process. They advertise job vacancies
through worldwide web. The job seekers send their applications or curriculum vitae i.e.,
worldwide web, which can be drawn by prospective employees depending upon their
requirements.
Advantages of E-Recruitment are:
Low cost
No intermediaries
Reduction in time for recruitment
Recruitment of right type of people
Efficiency of recruitment process

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Recruitment Process at APSPDCL:

The following are steps involved in a recruitment process in EMPEE Sugars and
chemicals Ltd.
 Determining the requirement
 Getting the resumes
 Short listing the profiles
 Interviewing the candidate
 Selecting the candidate
 Appointing the candidate

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INDUSTRY PROFILE

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INDUSTRY PROFILE

LIFE INSURANCE CORPORATION OF INDIA:

The Historical Background of Insurance The roots of insurance dates back to

Babylonia, where traders were encouraged to assume the risks of the caravan trade
through loans that were repaid with interest only after the goods had arrived safely. In
Europe, with the growth of towns and trade, the medieval guilds undertook to protect
their members from loss by fire and shipwreck and to provide decent burial and support
in sickness and poverty. By the middle of the 14th century, as evidenced by the earliest
known insurance contract Geneva 1347, marine insurance was practically universal
among the maritime nations of Europe. In London, Lloyd’s coffee house 1688 was a
place where merchants, ship owners and underwriters met to transact business. By the end
of the 18th century, Lloyd’s had progressed into one of the first modern insurance
companies. In 1693, the astronomer Edmond Halley constructed the first mortality table,
based on the statistical laws of mortality and compound interest. The table which was
corrected in the year 1756 by Joseph Dodson made it possible to scale premium rate to
age: previously the rate has been same for all the ages. Insurance business was developed
rapidly with the growth of British commerce in the 17th and 18th Century. Prior to the
formation of corporations which devoted solely to the business of writing insurance,
polices were signed by a number of individuals, each of whom wrote his name and the
amount of risk he was assuming underneath the insurance proposal. The first stock
companies to engage in insurance were chartered in England in 1720 and the First
insurance company in the American colonies was founded at Charleston in 1973.

Insurance is one of the UK's most important service industries and as such it has
achieved a pre-eminent position in the world's market. It is also one of the UK's biggest
invisible export earners, involving some of the most substantial funds in the world; over
the last five years it has generated half of Britain's vital invisible earnings. Insurance is
traditionally viewed as being a rather staid profession, so you might be surprised at the
number of interesting careers available in the industry. Within the industry there are five
main business sectors: pensions, insurance, life assurance, investment and actuarial work.
Whichever are you choose, you will be entering one the UK's largest industries. Over

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300,000 people are employed in the insurance sector, either in companies of which there
are several hundred, or insurance broking, which arranges cover with the insurance
companies.

In simple terms, insurance operates by a large group of people paying fixed

amounts of money, known as premiums into a fund. Providing a claim is legitimate,
money is then taken from these funds when compensation for a loss or accident is
required. Therefore insurance products protect individuals and institutions in the event of
these circumstances.

There are seven main areas of insurance:

-Aviation

-Liability

-Marine

-Motor

-Property

-Life

-Pensions

There are many different areas of specialism in the insurance world but all fall
within two principle business factors: life and general insurance. Life is concerned with
insuring people against premature death or permanent injury, also providing for the
financial needs of individuals through savings and in retirement. Pensions and long term
investments contracts fall within the life category. General insurance provides protection
against damage to property, personal injury and liabilities - everything from motor and
household insurance to risk protection for high cost installations such as oil risks or
satellites.

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COMPANY PROFILE

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COMPANY PROFILE

Business of life insurance in its existing form entered into India from the United
Kingdom (UK) with the establishment of a Oriental Life Insurance Company, a British
firm in Calcutta in 1818 and followed by Bombay Life Insurance Company in 1823, the
Madras Equitable Life Insurance Society in 1829 and Oriental Government Security Life
Insurance Company in 1874. But, the Indian lives were treated as sub-standard and
charged an extra premium of 15% to 20%. Bombay Mutual Life Assurance Society, an
Indian insurer which came into existence in 1870 was the first Indian Life Insurance
Company to cover Indian lives at normal rates. Bharat Insurance Company 1856 was also
one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907
gave rise to more insurance companies. The United India in Madras, national Indian and
national insurance in Calcutta and the Co-operative Assurance at Lahore were established
in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in Calcutta.
The Indian Mercantile, General Assurance and Swadeshi Life were some of the
companies established during the same period. Prior to 1912, no legislation existed to
regulate insurance business. In the year 1912, the Life insurance Companies Act and
Provident Fund Act were passed.

The first two decades of the 20th century saw a lot of growth in insurance
business. From 44 companies with total business in force at Rs.22.44 crores, it rose to
22176 companies with total business in force as Rs.298 crores in 1938. The insurance Act
1938 was the first legislation Act governing not only life insurance but also non life
insurance to provide strict state control over the insurance business. The demand for
nationalization of life insurance industry arises. Hence, the life insurance in India was
nationalized during 19th January 1956. About 154 Indian insurance companies, 16 non
Indian companies and 75 provident were operating in India at the time of nationalization.
The Parliament of India passed the Life insurance Corporation Act on the 19th of June
1956, and the Life Insurance Corporation of India was created on 1st September 1956
with the objective of spreading life insurance much more widely and in particular to the
rural areas with a view to reach all insurable persons in the country, providing them
adequate financial cover at a reasonable cost.

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LIC has 5 zonal offices, 33 divisional offices and 212 branch offices apart from
its corporate office in the year 1956. Due to variety of services required, the need was felt
to expand the operations and place a branch office at each district headquarters. Hence,
large number of branches was opened. It may be seen that from about 200 crores of new
business in 1957 the corporation crossed 1000 crores only in the year 1969-70 and it took
another 10 years for LIC to cross 2000 crores mark for new business. In 1985-86, LIC
had crossed 7000 crores Sum Assured on new policies.

Life Insurance Corporation of India

The Corporation has been established by the act of parliament which received the
assent of the president on 18th June 1956. The corporation began to function on
1stSeptember 1956. Since that day the corporation is having the exclusive privilege of
carrying on life insurance in India. The corporation is an autonomous body and has
necessarily to run around business principles. The nationalization of life insurance aims at
widening the channels of public savings. It is an important step towards mobilizing
savings more effectively than heretofore, to forces to finance national plans. Nationalized
Insurance is designed to bring to the door of even the humblest citizen, wherever he may
be, the benefits of this social service, to ensure complete security of the funds collected
by way of premiums and to utilize profitably such funds for nation building activities.
The corporation which was mainly transacting insurance on individual lives, later on
started doing insurance business on group basis under its pension and group scheme
portfolio. LIC offers policies to various groups such as employees, professionals, co-
operatives etc. During 1989, the corporation diversified its activities in many directions
LIC mutual fund was set up as a separate trust with a view of providing easy accessibility
of investment area including stock market in the country to one and all especially the
small investors in rural and semi urban areas. The corporation branched LIC housing
Finance limited on 19th June 1989. At its subsidiary along with UTI, IFCI, and ICICI
with a view to making a greater trust in the housing field by providing long term Finance
to help realize the objectives of the national housing policy. An off-shore company, LIC
was incorporated in Bahrain in July 1989 to transact life insurance business amongst non-
resident Indian in Middle East Countries.

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Constitution of the Corporation:

The Central Government shall appoint the member of the corporation which shall
not exceed 15 in number. One of the members shall be appointed by the central
Government as the Chairman. Before appointing a person to be a member, the Central
Government shall satisfy itself the person will have no such financial or other interest as
is likely to affect prejudicially the exercise performed by him.

Capital of the Corporation:

The corporation has a capital of Rs.5 crores entirely subscribed by the central
Government. The central Government may on the recommendation of the corporation
reduce the capital to the extent and in such manner as the Government may determine.

Special features of Life Insurance Corporation:

1. Lower premium and higher bonus than other private insurer.

2. More life risk cover through term rider
3. Maximum accident benefit as compared to other insurances.
4. Additional in built accident benefit in special policies like New Jana Rakshaand
Jeevan Anand are above the normal limit.
5. More than 40 attractive plans of assurances to choose from LIC.
6. Major percentage of the funds are invested in Government securities and thus
more secured.

Powers of the Corporation:

1. To carry on capital redemption business, annuity and reinsurance business.

2. To take all such steps as are necessary or expedient for the protection and
realization of its investment, including the taking over and administering any
property offered as security for the investment until a suitable opportunity arises
for its disposal.
3. To acquire, hold and dispose of any property for the purpose of its business.

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4. To transfer the whole or any part of the life insurance business carried on outside
India to any other person or persons if it is expedient to any other.
5. To advance or lend money upon the security of any movable or immovable
property or otherwise.
6. To borrow or raise money in such manner and upon such security as the
corporation many think fit.
7. To carry on any other business which may seem to the corporation to the capture
of being conveniently carried on in connection with its business and calculate
directly or indirectly to render profitable business of the corporation.

Life Insurance Corporation of India in Perambalur District:

The Life Insurance Corporation in Perambalur district was started in 8th February
1991. The branch manager of LIC at present is Mr. Parthian. Totally, 47 members and
750 agents are working under this branch. The various functions of LIC are providing
Health insurance scheme, international operation, Housing Loans, mutual Loans etc. Life
insurance products are distributed on the basis of Endowment plans, Money back plans,
Endowment plus whole life plan, Children polices policy for Handicapped, Whole life
policies, Investment plus risk plan, Pension, Term and Whole life plus Money back plans.
It covers the rural population more, as most of the people surviving in Perambalur district
are from rural background and it helps them to protect their life till end.

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CHAPTER-2
REVIEW OF LITERATURE

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REVIEW OF LITERATURE
Recruitment Definition

Recruitment refers to the process of finding possible candidates for a job or

function, usually undertaken by recruiters. It also may be undertaken by an employment
agency or a member of staff at the business or organization looking for recruits.
Advertising is commonly part of the recruiting process, and can occur through several
means through online, newspapers, using newspaper dedicated to job advertisement,
through professional publication, using advertisements placed in windows, through a job
center, through campus interviews, etc.

Recruitment Meaning

 Employing the right staff is an important human resource challenge faced by all
employers.
 Recruitment is an expensive business, which includes the cost of advertising and
the cost of current employees’ time interviewing and selecting the right candidate.
 Good recruitment and selection can result in:
A] Reduced labour turnover

B] Reduced absence

C] Reduced stress levels

 A recruitment process should be:

A] Efficient - cost effective in method and sources

B] Effective - producing enough suitable candidates

C] Fair - ensuring that decisions are made on merit without discrimination.

Recruitment and Selection Practices

Better recruitment and selection strategies result in improve organizational outcomes. The
more effectively organizations recruit and select candidates, the more likely they are to
hire and retain satisfied employees.

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Purpose

a) The objectives of this study were to:

1. Identify general practices that organizations use to recruit and select employees.

2. Determine which recruitment and selection practices are most effective.

3. Determine how the recruitment and selection practices affect organizational

outcomes.

b) Recruitment is the process of identifying and attracting potential candidates from

within and outside an organization to begin evaluating them for future employment. Once
candidates are identified, an organization can begin the selection process. This includes
collecting, measuring, and evaluating information about candidates’ qualifications for
specified positions.

The study, based on survey results from 162 members of the DDI HR Benchmark Group,
addresses the following issues.

i. General recruitment and selection profiles.

ii. Recruitment strategies.
iii. Organizational offerings and their impact on prospective employees.
iv. Current and future selection practices.
v. Outsourcing recruitment and selection activities.
vi. Barriers to effective recruitment and selection.
Recruitment Strategies

a) Findings Overview

Organizations were asked what strategies they use to recruit both managerial/professional
and non management candidates.

A. For recruiting managerial/professional candidates, the Internet is the most popular

advertising medium, used by 76 percent of the organizations surveyed.
B. Organizations regularly utilize internal resources (e.g., internal job postings and
employee referrals) when recruiting both internal and external candidates.
C. Different kinds of agencies are used to recruit for positions at different levels.

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i. Temporary and government agencies are used mainly to recruit non

management candidates.
ii. Employment agencies, colleges, and professional organizations are
used more often to recruit managerial/professional candidates.
Organizational Offerings

The quality of an organization’s offerings affects its ability to attract job

candidates.

a. Organizations believe they offer candidates a strong company reputation (69

percent) and high-quality benefits packages (65 percent) and learning
opportunities (55 percent).

b. Many organizations do not offer stock options (37 percent) or child care options
(36 percent).

Best Practices

Organizations with the most effective recruiting strategies were 15 to 19 percent

more likely to offer candidates high-quality options such as:

Potential for advancement, Company reputation, Stocks, Benefits package etc.,

Current and Future Selection Practices

a) Findings Overview

Organizations were asked to indicate how extensively they use several selection
practices and how much they anticipate using them in the future.

a. Most organizations make extensive use of applications (89 percent), manual

resume screening (80 percent), and reference checks (75 percent) in their selection
systems.

b. Less than 20 percent of organizations currently use testing or assessment

methods extensively in their selection process

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Barriers to Effective Recruitment and Selection

a) Findings Overview

The surveyed organizations report that the top barriers to effective recruitment and
selection of candidates are:

a. Shortage of qualified applicants (62 percent).

b. Competition for the same applicants (62 percent).

c.Difficulty finding and identifying applicants (48 percent).

By Sheila M. Rioux, Ph.D., and Paul Bernthal, Ph.D.

Search and selection process:

Introduction

This is the foundation for all future employee relations activities. As such, a considerable
amount of employee resources is rightfully spent on working on screening committees
and in hiring employees. This document has been developed to assist hiring supervisors,
committee members and others in defining effective search and selection processes,
thereby maximizing the efforts to identifying and attracting the best candidates.

Planning

As will become evident in further review of this document, planning is an essential

component to nearly every step of the search and selection process. We must plan the
way the position can meet the needs of the department while appropriately using available
resources, plan a recruitment strategy, and plan a screening strategy and, finally, a
selection strategy.

Needs assessment:

The first step in any process is to determine the goals that you would like to
accomplish. In Search and Selection, this process usually takes one of two forms:

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1) An addition to staff

In the event that the job is new and has not been graded before, it will
be necessary for the supervisor to complete the Position Analysis Questionnaire,
which will identify the job responsibilities and competencies required, as well as
aid in establishing the appropriate salary grade for the position.

2) A replacement of staff.

The time when a current employee vacates an existing position can be

an optimal time to review the organization and determine if a reallocation of
position responsibilities is appropriate. Often, a juggling of responsibilities within
a unit can create promotional opportunities, new skills, job enrichment and could
better match the remaining incumbents skills with the skills required for the
position.

Identification of minimum requirements and preferred qualities

During the posting and recruitment process, the college identifies and announces
minimum requirements for fulfilling the responsibilities of the position as well as those
qualities which the supervisor believes will lead to further success in the position.

Development of Screening Materials

Once the position requirements and preferred qualities are identified, it should be easy for
the supervisor to identify the screening questions. Since the committee should only be
asking questions which related to the decision of who to forward to the supervisor in the
next step of the process, the only topics the committee needs to address are those which
have been identified by the supervisor as being either preferred or necessary qualities (as
defined in the Notice of Vacancy).

The three parts to the screening process

a) Paper review
b) Interviews with the candidates
c) Interviews with each, respective candidates references

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The interviews with the candidates

As addressed previously, the interview questions should cover specific areas of

concern. In the previous section, sample interview questions are offered for the hiring
supervisor in developing the interview questionnaire. Similar to developing the rating
scale in the paper review process, the supervisor will assign maximum point values to
each question, based on their relative importance to other criteria being reviewed.

Qualities that could fall into this category include:

 ability to adapt to change

 ability to display a positive outlook
 ability to follow instructions
Development of Recruitment strategy

Even though s/he is not part of the screening process, the hiring supervisor steers
the search by developing the recruitment criteria, the position requirements and preferred
qualities, the rating scales and interview questions. The recruitment strategy is the stage
where the hiring supervisor determines, with assistance from Human Resources, the
timing for the search as well as the way that the position vacancy will be communicated.

Recruitment Metrics:

Recruitment can be an expensive and time-consuming endeavor, and understanding the

value of the results means knowing whether or not the time and money are being used
effectively. A few common recruitment metrics:

1) New Hire Quality:

Three to six months after hire, the hiring manager should complete an evaluation
of the new employee that compares expectations prior to recruiting with the actual
performance of the employee. Facets of quality to be evaluated include knowledge and
skills, performance, experience, motivation, multitasking abilities, learning curve,
customer compatibility, and organization compatibility.

2) Recruiting Cost Ratio:

The RCR is used to determine average HR spending on recruiting activities in

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relation to the starting compensation of new hires (positions filled) that result from
staffing activities. This metric calculates the Total Recruiting Costs (both internal and
external) and divides it by the Total Compensation Recruited (the sum of the base
annual compensation of the positions filled through recruitment).

3) Recruiting Efficiency:

Closely related to RCR is the metric for Recruiting Efficiency. Recruiting

Efficiency gives a percentage in relation to complete efficiency, which is considered to
be 100%.

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CHAPTER - 3

RESEARCH METHODOLOGY

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NEED OF THE STUDY

To Increase the effectiveness of different recruiting techniques and sources for all
types of job applicants in the organization.

 To identify the various sources of recruitment.

 To obtain the number and quality of employees that can be selected in order
to help the organization to achieve its goals and objectives

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OBJECTIVES OF THE STUDY

 To study the recruitment and selection process.

 To analyze the effectiveness of recruitment and selection process.
 To study right position is filled by right candidate

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SCOPE OF THE STUDY

 The Project throws light on the need for learning about recruitment and
selection process.
 This study will be useful to find out the sources and techniques used in the
recruitment and selection process.
 It helps to analyze the recruitment policy of the organization

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RESEARCH DESIGN

Research Type:

The research made was of survey type. The survey was done among employees of L.I.C
using a questionnaire.

Data Sampling:

Sample of 50 employees are taken among 100 employees of L.I.C. Data sources:

The study is based on two sources of data viz., primary data and secondary data.
Primary data collected using a questionnaire and secondary data available
with the L.I.C. The secondary data has been collected from the published reports
perused are as below:

 Staff regulations
 Annual report
 Office order and circulars
 Operations manual of Human Development Department
 Seniority lists

TOOLS AND TECHNIQUES:

 Tables
 Bar diagrams

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LIMITATIONS OF THE STUDY

 The sample size was limited as well as respondents were administered by the
management. Hence there was no enough scope to choose the respondents based
on any other criteria.
 Time is the limiting factor to gather more information for the study as most of the
information is available at main branch.
 Availability of the information on Human Resource Management and its
confidentiality is also a limiting factor.
 There are some lapses in the availability of data.

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CHAPTER-4

DATA ANALYSIS AND

INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

Table No.1

1. What is your opinion about recruitment and selection process in the LIC?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Extremely good 23 46
2. Good 23 46
3. Average 0 0
4. Bad 4 8
TOTAL 50 100

PERCENTAGE
50 46 46
45
40
35
30
25
20
15
10 8

5
0
0
Extremely good Good Average Bad

INTERPRETATION:

46% of the employee opinion about recruitment and selection process in

the L.I.C. is extremely good, 46% of the employees opinion is good and 4% of
the employees opinion is bad. So, the process of recruitment and selection is
satisfactory.

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Table No.2

2. Does the organization do proper job analysis before selection process begins?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 38 76

2. No 12 24

TOTAL 50 100

PERCENTAGE
80 76

70

60

50

40

30 24
20

10

0
Yes No

INTERPRETATON:

76% of the employees accepting the job analysis process and remaining 24% employees
are not accepting.

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Table No.3

3. Does the job responsibility and job description clearly defined to the candidates?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 47 94

2. No 3 6

TOTAL 50 100

PERCENTAGE
100 94
90
80
70
60
50
40
30
20
10 6

0
Yes No

INTERPRETATION:

94% of the employees accepting that the job description and job responsibility are
defined to the candidates.

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Table No.4

4. Do you think organization prefers referred candidates?

SL.NO TYPE OF OPTION NO.OF RESPONDENTS PERCENTAGE

1. Yes 34 68

2. No 16 32

TOTAL 50 100

PERCENTAGE
80
68
70

60

50

40
32
30

20

10

0
Yes No

INTERPRETATION:

68% of the employees accepting organization prefers referred candidates and

remaining 32% of the employees are not accepting.

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Table No.5

5. Do you think that the man power recruitment of each department is planned well in
advance?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 76 76

2. No 24 24

TOTAL 100 100

PERCENTAGE
80 76

70

60

50

40

30 24
20

10

0
Yes No

INTERPRETATION:

Most of the employees accepting that the manpower requirements in L.I.C is

planned well in advance.

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Table No.6

6. Does the selection methods using by the organization are reliable?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 74 74

2. No 26 26

TOTAL 100 100

PERCENTAGE
80 74
70

60

50

40

30 26

20

10

0
Yes No

INTERPRETATION:

74% of the employees are satisfying with the selection methods which are
conducting by the organization and 26% of the employees are not satisfying with the
selection methods conducting by the organization.

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Table No.7

7. Is the organization doing timelineness recruitment and selection process?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 64 64

2. No 36 36

TOTAL 100 100

PERCENTAGE
70 64

60

50

40 36

30

20

10

0
Yes No

INTERPRETATION:

64% of the employees are agreed on the above statement that the time
lineness of the recruitment and selection process and 36% of the employees are not
agreed.

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Table No.8

8. Does the manager provide adequate pool of quality applicants?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 76 76

2. No 24 24

TOTAL 100 100

PERCENTAGE
80 76

70

60

50

40

30 24
20

10

0
Yes No

INTERPRETATION:

76% of the employees are agreed on above statement and24% of the employees
are not agreed on above statement.

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Table No.9

9. Rate the effectiveness of interviewing and other selection instruments.

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 74 74

2. No 26 26

TOTAL 100 100

PERCENTAGE
80 74
70

60

50

40

30 26

20

10

0
Yes No

INTERPRETATION:

74% of the employees are rated highly for the effectiveness of interviewing and
other selection instruments and 26% of the employees are not rated for effectiveness of
interviewing.

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Table No.10

10. Rate how well HR finds good candidates from non traditional sources when
necessary?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Extremely good 16 16

2. Good 74 74

3. Average 3 3

4. Bad 0 0

TOTAL 100 100

PERCENTAGE
80 74
70

60

50

40

30

20 16

10
3
0
0
Extremely good Good Average Bad

INTERPRETATION:

74% of the employees are rated good for the finding of good candidates
from non traditional sources when necessary,16% of the employees are rated
extremely good,3% of the employees are rated averagely for the findings of good
candidates.

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Table No.11

11. Do you think organization looks for experienced employees in the selection process?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 70 70

2. No 30 30

TOTAL 100 100

PERCENTAGE
80
70
70

60

50

40
30
30

20

10

0
Yes No

INTEPRETATION:

70% of the employees accept that the organization looks for experienced
employees in the selection process and remaining 30%of the employees are not
accepting.

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Table No.12

12. Do you think fresher’s bring new blood in the organization and improve organization
effectiveness?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 80 80

2. No 14 14

3. No idea 6 6

TOTAL 100 100

PERCENTAGE
90
80
80
70
60
50
40
30
20 14
10 6

0
Yes No No Idea

INTERPRETATION:

80% of the employees think fresher’s bring new blood in the organization and
improve organization effectiveness ,14% of the employees feels no and 6% of the
employees feals no idea

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Table No.13

13. Is there is any participation by the line managers in man power planning and
recruitment?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 64 64

2. No 36 36

TOTAL 100 100

PERCENTAGE
70 64

60

50

40 36

30

20

10

0
Yes No

INTERPRETATION:

64% of the employees are accepting that the participation of the live managers
in man power planning and recruitment and 36%of the employees feels no.

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Table No.14

14. Do you think organization is using satisfactory methods of interview?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Highly satisfied 30 30
2. Satisfied 62 62
3. Moderately satisfied 8 8
4. Dissatisfied 0 0
TOTAL 100 100

PERCENTAGE
70
62
60

50

40
30
30

20
8
10
0
0
Highly satisfied Satisfied Moderately satisfied Dissatisfied

INTERPRETATION:

62% of the employees satisfied on the methods of interview, 30%of the

employees highly satisfied 8% of the employees are moderately satisfied.

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Table No.15

15. Is the resume screening and short listing method used by the organization is
satisfactory?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Highly satisfied 34 34
2. Satisfied 56 56
3. Moderately satisfied 10 10
4. Dissatisfied 0 0
TOTAL 100 100

PERCENTAGE
80 76

70

60

50

40

30 24
20

10

0
Yes No

INTERPRETATION:

56% of the employees satisfied the resume screening and shot listing method used
by the organization,34%of the employees are satisfied and 10% of the employees are
moderately satisfied.

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Table No.16

16. Do you feel that recruitment procedure is adequate enough?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 72 72

2. No 28 28

TOTAL 100 100

PERCENTAGE
80
72
70

60

50

40
28
30

20

10

0
Yes No

INTERPRETATION:

72% of the employees feels that the recruitment procedure in adequate enough
and 28% of the employees feels no.

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Table No.17

17. Do you think criteria for short listing candidates used by the organization is
satisfactory?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Highly satisfied 38 38
2. Satisfied 52 52
3. Moderately satisfied 10 10
4. Dissatisfied 0 0
TOTAL 100 100

PERCENTAGE
60
52
50

40 38

30

20
10
10
0
0
Highly satisfied Satisfied Moderately satisfied Dissatisfied

INTERPRETATION:

52% of the employees feels satisfied, 38% of the employees feels highly
satisfied,10% of the employees feels moderately satisfied.

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Table No.18

18. Does the organization do employee verification before and after selection?

SL.NO TYPE OF OPTIONS NO.OF RESPONDENTS PERCENTAGE

1. Yes 94 94

2. No 6 6

TOTAL 100 100

PERCENTAGE
100 94
90
80
70
60
50
40
30
20
10 6

0
Yes No

INTERPRETATION:

94% of the employees says yes and 6% of the employees says no.

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CHAPTER-5
FINDINGS,
SUGGESTIONS,
CONCLUTION

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FINDINGS

 It is found that recruitment and selection is good in L.I.C.

 It is found that proper job analysis is done in the L.I.C.
 It is found that candidates are clearly known about their responsibilities and also
they have an idea about the job.
 It is found that organization preferring referred candidates.
 It is found that selection methods used by the organization are reliable.
 Ø It is found that the organization looking for experienced employees.

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SUGGESSTIONS

 The company can implement more effective programs for selection.

 As organization prefers experienced people, they can also give chance to freshers.
 They are consider only referred candidates, it may be better to choose
other options..
 The company should also provide more recreation programmes like holiday
packages.

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CONCLUSION

It is very much clear from the feedback given by the employees that they are
highly satisfied and are very proud to be associated with the company that the
market leader in that sector. Most of the employees are aware of the recruitment and
selection process and their opinion on Recruitment and Selection process is very
much satisfactory.

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ANNEXURE

 QUESTIONNAIRE
 SYNOPSIS
 BIBLIOGRAPHY

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QUESTIONNAIRE

1. What is your opinion about recruitment and selection process in the LIC?

a. Extremely good b. Good c. Average d. Bad

2. Does the organization do proper job analysis before selection process begins?

a. Yes b. No

3. Does the job responsibility and job description clearly define to the candidates?

a. Yes b. No

4. Do you think organization prefers referred candidates?

a. Yes b. No

5. Do you think that the man power recruitment of each department is planned well in
advance?

a. Yes b. No

6. Does the selection methods used by the organization are reliable?

a. Yes b. No

7. Is the organization doing timelineness recruitment and selection process?

a. Yes b. No

8. Does the manager provide adequate pool of quality applicants?

a. Yes b. No

9. Rate the effectiveness of interviewing and other selection instruments?

a. Yes b. No

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10. Rate how well HR finds good candidates from non –traditional sources when
necessary?

a. Extremely good b. Good c. Average d. Bad

11. Do you think organization looks for experienced employees in the selection process?

a. Yes b. No

12. Do you think fresher’s bring new blood in the organization and improve

Organization effectiveness?

a. Yes b. No c. No idea

13.Is there is any participation by the line managers in man power planning and
recruitment?
a. Yes b. No
14. Do you think organization is using satisfactory methods of interview?
a. Highly satisfied b. Satisfied c. Moderately satisfied d. Dissatisfied
15.Is the resume screening and short listing method used by the organization is
satisfactory?

a. Highly satisfied b. Satisfied. c. Moderately satisfied d. Dissatisfied

16. Do you feel that recruitment procedure is adequate enough?

a. Yes b. No

17. Do you think criteria for short listing candidates used by the organization is
satisfactory?

a. Highly satisfied b. Satisfied c. Moderately satisfied d. Dissatisfied

18. Does the organization do employee verification before and after selection?

a. Yes b. No

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SYNOPSIS

INTRODUCTION MEANING:
Recruitment is under tool as the process of searching and obtaining applications
for jobs, from among the right people can be selected. Recruitment is only one of the
steps in the entire employment process.
INDUSTRY PROFILE
LIFE INSURANCE CORPORATION OF INDIA:
The Historical Background of Insurance The roots of insurance dates back to
Babylonia, where traders were encouraged to assume the risks of the caravan trade
through loans that were repaid with interest only after the goods had arrived safely. In
Europe, with the growth of towns and trade, the medieval guilds undertook to protect
their members from loss by fire and shipwreck and to provide decent burial and support
in sickness and poverty. By the middle of the 14th century, as evidenced by the earliest
COMPANY PROFILE
Business of life insurance in its existing form entered into India from the United
Kingdom (UK) with the establishment of a Oriental Life Insurance Company, a British
firm in Calcutta in 1818 and followed by Bombay Life Insurance Company in 1823, the
Madras Equitable Life Insurance Society in 1829 and Oriental Government Security Life
Insurance Company in 1874. But, the Indian lives were treated as sub-standard and
charged an extra premium of 15% to 20%. Bombay Mutual Life Assurance Society

REVIEW OF LITERATURE
Recruitment Definition
Recruitment refers to the process of finding possible candidates for a job or
function, usually undertaken by recruiters. It also may be undertaken by an employment
agency or a member of staff at the business or organization looking for recruits.
Advertising is commonly part of the recruiting process, and can occur through several
means through online, newspapers, using newspaper dedicated to job advertisement,
through professional publication, using advertisements placed in windows, through a job
center, through campus interviews, etc.

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NEED OF THE STUDY

To Increase the effectiveness of different recruiting techniques and sources for all
types of job applicants in the organization.
 To identify the various sources of recruitment.

OBJECTIVES OF THE STUDY

 To study the recruitment and selection process.
 To analyze the effectiveness of recruitment and selection process
SCOPE OF THE STUDY
 The Project throws light on the need for learning about recruitment and
selection process.

RESEARCH DESIGN
Research Type:
The research made was of survey type. The survey was done among employees of L.I.C
using a questionnaire.

LIMITATIONS OF THE STUDY

 The sample size was limited as well as respondents were administered by the
management. Hence there was no enough scope to choose the respondents based
on any other criteria.
FINDINGS
 It is found that recruitment and selection is good in L.I.C.
 It is found that proper job analysis is done in the L.I.C.
 It is found that candidates are clearly known about their responsibilities and also
they have an idea about the job.
SUGGESSTIONS
 The company can implement more effective programs for selection.
 As organization prefers experienced people, they can also give chance to freshers.

CONCLUSION
It is very much clear from the feedback given by the employees that they are
highly satisfied and are very proud to be associated with the company that the

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BIBLIOGRAPHY

1. SUBBA RAO - Essentials of Human Resource Management

- Industrial Relations, Himalaya Publishing

House, First Edition -1996, Reprint 2006

2. C.B.MAMORIA, S.V. CRANKAR - Human Resource Management

- Himalaya Publishing House

- First Edition-2006.

3. ASWATHAPPA - Human Resource and Personnel Management

- Tata Mc. Graw-Hill Publishing Company Ltd.,

New Delhi, Third Edition

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