A

Project Report

On

Recruitment And Selection

of

HDFC Standard Life Insurance Company

In Partial Fulfillment of B.B.A (Bachelor of Business Administration)

Programme of G.G.S.I.P.University.

Submitted by:
SELESH GUPTA
0921221707

DELHI COLLEGE OF ADVANCED STUDIES

B-7, Shanker Garden, Vikaspuri
New Delhi-110018
 Student declaration

I declare that the project entitled “PROJECT ON RECUIRTMENT AND SELECTION

IN HDCF-SLIC” Is an original done by me and no part of the project is taken from any
other project or material published or otherwise or submitted earlier to any other college
or university.

Selesh gupta

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 ACKNOWLEDGMENT

I was actively involved with HDFC Standard life insurance company ltd
Delhi, for a period of 8 weeks, and I came across a lot of people who
put in their time and effort towards acclimatizing me to the workings of their
organization.

Firstly I would like to thanks Mr. MANISH SHARMA is the BRANCH

MANAGER of the HDFC Standard Life Insurance Company Ltd. for giving me
opportunity to work with this organization.

I would like thanks Mr.CHANDAN JYOTI without whose support, this project
would not have been possible. Heartiest thanks for his constant support and
motivation.

My gratitude to everyone there at HDFC Standard Life Company who has

helped me directly or indirectly in the completion of this project.

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 PREFACE

I, student of DELHI COLLEGE OF ADVANCED STUDIES affiliated to GURU

GOBIND INDRAPRASTHA UNIVERSITY pursuing BBA (GEN) course. I have
put my sincere efforts to accomplish my objectives within the stipulated time.

Despite all the limitations, obstacles, hurdles and hindrances, I have toiled and
worked to my optimum potential to achieve the desire goal. Being in the highly
competitive world of business, I came across some difficulties to make my
objectives a reality. Anyhow, with the kind help and genuine interest of one and all
and formally supported by the guidance of my guide, I am presenting this hand
carved effort in colored. I tried my level best to conduct a research to gain a
thorough knowledge about the project in my topic “Recruitment and Selection of
HDFC Standard Life Insurance Company” I have put the best of my efforts and have
also tried to do justice with the available. If anywhere something is found
unacceptable or unnecessary to the theme, you are welcome with your valuable
suggestions.

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 EXECUTIVE SUMMARY

HDFC Standard Life insurance is India's premier insurance enabling company.

HDFC Standard Life insurance is the one-stop-shop for requirements of services in
the areas of insurance, optimum investment, financial coverage and losses, mortality
benefit, and health option etc. This is backed by HDFC Standard life insurance
service support infrastructure - the widest in the country.

The objective of the project was to understand how financial consultant play
important role for insurance company like HDFC STANDARD LIFE. So to
understand the process of Recruitment of financial consultant in HDFC
STANDARD LIFE .

The main objective of the project is to understand the recruitment and selection of
financial consultant more effectively and efficiently, because financial consultant
play most important role in business of insurance. Market in Pune city was targeted.
Various areas in city were selected. The data gave knowledge about customer
satisfaction, loyalty & their feel about the HDFC Standard Life Insurance.

Recruitment was conducted using questionnaire. The information about various

attributes & factors was collected about the financial consultant. All the data
collected, primary data was filtered & analyzed, represented in the form of graphs &
charts. Secondary data was also used in report such as company profile, on the basis
of analysis of data, conclusions were drawn. On the basis of findings & conclusions,
suggestions were given.

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 ORGANISATION OVERVIEW

HISTORY

MAN WITH A MISSION

If ever there was a man with a mission it wasHasmukhbhai Parikh, Founder and
Chairman-Emeritus of HDFC Group who left this earthly abode on November18,
1994. Born in a traditional banking family in Surat,Gujurat, Mr. Parikh started his
financial career at Harkisandass Lukhmidass – a leading stock broking firm. The
firm closed down in the late seventies, but, long Before that, he went on to become a
towering figure on the Indian financial scene. In 1956 he began his lifelong financial
affair with the Economic world, as General Manager of the newly-formed Industrial
Credit and Investment Corporation of India(ICICI). He rose to become Chairman
and continued so till his retirement in 1972.At the ripe age of 60, Hasmukhbhai
started his second dynamic life, even more Illustrious than his first. His vision for
mortgage finance for housing gave birth to the

Housing Development Finance Corporation –It was a trend-setter for housing

finance in the Whole Asian continent. He was also a writer in his own right. There
are over 200 published articles by him...? In 1992, the Government of India honored
him with the Padma Bhushan Award.

London School of Economics & Political Science conferred on him an Honorary

Fellowship.He was one of the Founder Members of the Centre for Advancement of
Philanthropy, and it’s Chairman till 1993. He took active interest in the Bombay

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Community Public Trust, designed specifically to serve the needs of the city’s
underprivileged citizens. When Mr. Deepak Parikh took over as Chairman from
Hasmukhbhai, he said: “Taking over from H.T. Parikh is a formidable task; his
vision… brought about not Only an institution, but an entire concept which has
proved itself to be of lasting Importance.”

The Standard Life Assurance Company ("Standard Life") was established in 1825
and the first Standard Life Assurance Company Act was passed by Parliament in
1832. Standard Life was reincorporated as a mutual assurance company in 1925.

The Standard Life group originally operated only through branches or agencies of
the mutual company in the United Kingdom and certain other countries.

Its Canadian branch was founded in 1833 and its Irish operations in 1838. This
largely remained the structure of the group until 1996, when it opened a branch in
Frankfurt, Germany with the aim of exporting its UK life assurance and pensions
operating model to capitalise on the opportunities presented by EC Directive
92/96/EEC (the “Third Life Directive”) and offer a product range in that market with

In the 1990s, the group also sought to diversify its operations into areas which
complemented its core life assurance and pensions business, with the intention of
positioning itself as a broad range financial services provider. Banking and
investment.

The group set up Standard Life Bank, its UK mortgage and retail savings banking
subsidiary, in 1998 and Standard Life Investments, which had previously been the
in-house investment management unit of the group’s life assurance and pensions
business, was separated into a distinct legal entity in the same year, with the aim of
establishing it as an independent investment management business providing
services to both the group and third party retail and institutional clients. The group
acquired Prime Health Limited (subsequently renamed Standard Life Healthcare) in
the United Kingdom in 2000. Standard Life Healthcare expanded in March 2006

with the acquisition of the PMI business of FirstAssist.

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Standard Life Asia Limited/Joint ventures –

The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”), was
incorporated in 1999 as a joint venture and became a wholly-owned subsidiary of
Standard Life in 2002. The group’s operations in Hong Kong were established to
give the group a presence in the Far East from which it could expand into China.
The group’s joint ventures in India with Housing Development Finance Corporation
Limited (“HDFC”) were incorporated in 2000 (in relation to the life assurance and
pensions joint venture) and 2003 (in relation to the investment management joint
venture). The group’s joint venture in China with Tianjin Economic Development

Standard Life International Limited -

The group also incorporated Standard Life International Limited (“SLIL”) in 2005
for the purposes of providing the group with an offshore vehicle, based in Ireland,
through which it could sell tax-efficient investment products into the United
Kingdom. Sales of these products commenced in 2006.

Service company

Following the group’s strategic review in 2004, the group established a service
company structure for the provision of central corporate services to the group’s
business units. Standard Life Employee Services Limited (“SLESL”) supplies a
wide range of central services to the rest of the group, including IT, facilities, legal
and human resources services, and employs staff working in the group’s UK and
Irish operations (other than SLI, SLB and SLH, which employ their staff directly).
This service company structure was created to enable Standard Life to comply with
regulatory restrictions on the provision of non-insurance services and to exploit
group-wide synergies.

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 Company prospects
Introduction
HDFC Standard Life Insurance Company Limited. is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in
the joint venture, while the rest is held by Others.

Our Parentage
HDFC Limited

HDFC Limited, India’s premier housing finance institution has assisted more than
3.3 million families own a home, since its inception in 1977 across 2400 cities and
towns through its network of over 250 offices. It has international offices in Dubai,
London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and
Oman to assist NRI’s and PIO’s to own a home back in India. As of December 2008,
the total asset size has crossed more than Rs. 95,000 crores including the mortgage
loan assets of more than Rs. 82,800 crores. The corporation has a deposit base of Rs.
17,551 crores, earning the trust of more than 9,00,000 depositors. Customer Service
and satisfaction has been the mainstay of the organization. HDFC has set
benchmarks for the Indian housing finance industry. Recognition for the service to
the sector has come from several national and international entities including the
World Bank that has lauded HDFC as a model housing finance company for the
developing countries. HDFC has undertaken a lot of consultancies abroad assisting
different countries including Egypt, Maldives, and Bangladesh in the setting up of
housing finance companies.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life Group has been looking after the financial needs of customers
for over 180 years. It currently has a customer base of around 7 million people who
rely on the company for their insurance, pension, investment, banking and health-
care needs. Its investment manager currently administers £125 billion in assets. It is
a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong'

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with a rating of A+ and as 'good' with a rating of A1 by Moody's. Standard Life was
awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing
Awards, and it was voted a 5 star life and pension’s provider at the Financial
Adviser Service Awards for the last 10 years running. The '5 Star' accolade has also
been awarded to Standard Life Investments for the last 10 years, and to Standard
Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best
Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006.

Our Vision & Values

Our Vision

'The most successful and admired life insurance company, which means that we are
the most trusted company, the easiest to deal with, offer the best value for money,
and set the standards in the industry'.

'The most obvious choice for all'.

Our Values

Values that we observe while we work:

• Integrity
• Innovation
• Customer centric
• People Care “One for all and all for one”
• Team work
• Joy and Simplicity

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 Profile of the Board of Directors

Mr. Deepak S. Parekh is the Chairman of the Company. He is also

the Executive Chairman of Housing Development Finance
Corporation Limited (HDFC Limited). He joined HDFC Limited in a
senior management position in 1978. He was inducted as a whole-
time director of HDFC Limited in 1985 and was appointed as its
Executive Chairman in 1993. He is the Chief Executive Officer of
HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).

Sir Alexander M. Crombie joined the Board of Directors of the

Company in April, 2002. He has been with the Standard Life Group
for 34 years holding various senior management positions. He was
appointed as the Group Chief Executive of the Standard Life Group in
March 2004. Sir Crombie is a fellow of the Faculty of Actuaries in
Scotland.

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Mr. Keki M. Mistry joined the Board of Directors of the Company
in December, 2000. He is currently the Managing Director of HDFC
Limited. He joined HDFC Limited in 1981 and became an Executive
Director in 1993. He was appointed as its Managing Director in
November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered
Accountants of India and a member of the Michigan Association of
Certified Public Accountants.

Ms. Marcia D. Campbell is currently the Group Operations Director

in the Standard Life group and is responsible for Group Operations,
Asia Pacific Development, Strategy & Planning, Corporate
Responsibility and Shared Services Centre. Ms. Campbell joined the
Board of Directors in November 2005.

Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a

graduate in law and holds a Master's degree in economics from Delhi
University. She has been employed with HDFC Limited since 1978
and was appointed as the Executive Director in 2000. She is
responsible for overseeing all aspects of lending operations of HDFC
Limited.

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Mr. Norman K. Skeoch is currently the Chief Executive in Standard
Life Investments Limited and is responsible for overseeing
Investment Process & Chief Executive Officer Function. Prior to this,
Mr. Skeoch was working with M/s. James Capel & Co. holding the
positions of UK Economist, Chief Economist, Executive Director,
Director of Controls and Strategy HSBS Securities and Managing
Director International Equities. He was also responsible for Economic
and Investment Strategy research produced on a worldwide basis. Mr.
Skeoch joined the Board of Directors in November 2005.

Mr. Gautam R. Divan is a practising Chartered Accountant and is a

Fellow of the Institute of Chartered Accountants of India. Mr. Divan
was the Former Chairman and Managing Committee Member of
Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited companies
and also has substantial experience in structuring overseas
investments to and from India.

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 Associate Companies

HDFC LIMITED

HDFC BANK

HDFC MUTUAL FUND

HDFC SALES

HDFC ERGO General Insurance

Other Companies
• HDFC Trustee Company Ltd.
• GRUH Finance Ltd.
• HDFC Developers Ltd.
• HDFC Property Ventures Ltd.
• HDFC Ventures Trustee Company Ltd.
PROUCT RANGE & VARIETY

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every

need. We cater to both, individuals as well as to companies looking to provide
benefits to their employees. This section gives you details of all our products. We

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have incorporated various downloadable forms and product details so that you can
make an informed choice about buying a policy.

For individuals, we have a range of protection, investment, pension and savings

plans that assist and nurture dreams apart from providing protection. You can choose
from a range of products to suit your life-stage and needs.

For organizations we have a host of customized solutions that range from Group
Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These
affordable plans apart from providing long term value to the employees help in
enhancing goodwill of the company.

We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from
to suit all your needs. These will help secure your future as well as the future of your
family.

Type of products

(1) Protection

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 A. Term assurance plan
B. Loan cover term assurance plan

A) Term assurance plan:-

Under this plan, a sum assured is payable in case of death of the life
assured during the term of the contract. One can choose the lump sum that
would replace the income lost to one’s family in the unfortunate event of one’s
death. Since this no-participating plan is pure risk cover plan, no benefits are
payable on the survival to the end of the term of the policy.

B) Loan cover term assurance plan:-

This plan provides a lump sum on the unfortunate death of the life
assured during the term of the plan. The lump sum will be a decreasing
percentage of the initial sum assured. As the outstanding loan decreases as per
the loan schedule, the cover under the policy decreases as per the policy
schedule. Since this is a non-participating, risk is there, no benefits are payable
on survival to the end of the term of the policy.

(2) Investment
 Single premium whole of life

Single premium whole of life:-

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 Single Premium Whole of Life Plan is well suited to meet your long term
investment needs. This participating (with profit) plan offers you the following
benefits:

A sound investment:
Your money will be invested in our ‘with profit fund’. The fund aims to provide
secure and stable long term growth. Normally, we declare a compound
reversionary bonus for your policy every year and add it to your policy on its
anniversary. In addition, on death, surrender or on the guaranteed dates, a
terminal bonus might be payable. You have to pay a single premium and the
policy will pay you a lump sum amount.

Flexibility of term:
Even after choosing your policy, you can decide on the policy term. For 4
weeks after any one of the 10th, 15th, 20th, and subsequent five-year
anniversaries, you can choose to receive the sum assured plus any attaching
bonuses, in full. Once the money has been received, your policy will cease.

(3) Pension plan

A. Personal pension plan
B. Unit linked personal pension plan

A) Personal pension plan:-

This participating plan is basically a saving contract, which is designed to

provide an income for life from retirement. It does this by providing a national

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lump sum on retirement, comprising of sum assured plus any attaching bonus.
Subject to the prevailing regulations, part of this lump sum can be taken in form
of cash and the rest converted to an annuity at the rate then offered by HDFC
Standard Life. Alternately, if it is permitted by the prevailing regulation, the
national lump sum can be used to buy an annuity with any other insurance
company

B) Unit linked personal pension plan:-

The unit linked pension plan is basically an insurance contract, which is

designed to provide a retirement income for life. Your premiums are invested in
units of the investment fund of your choice, based on the prevailing unit price.
On investing the vale of your units will be used to buy your retirement benefits.
On earlier death, the beneficiary receives the value of your units plus a cash
lump sum of Rs. 1,000.

(4) Saving

A. Unit linked endowment plan

B. Money back
C. Endowment plan
D. Unit linked youngster plan

A) Unit linked endowment plan:-

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 The unit linked endowment plan is an insurance policy that is designed to pay a
lump sum amount on the maturity or on earlier death. The unit linked
endowment plan also gives the option of additional protection against common
critical illness, as well as additional protection if death is as the result of an
accident.
Your premiums are invested in units of the investment fund of your choice,
based on the prevailing unit price. On maturity you receive the value of your
units. On death (or critical illness, if chosen) you receive the value of your units
and your selected basic sum assured.

B) Money back:-
It is a participating (with profits) insurance plan that offers the features listed
below:

i) Payment of cash lump sum, each of which is a proportion of the basic sum
assured, at 5-year intervals during the term of policy.

ii) On survival up to maturity, a payment equal to the basic sum assured plus
any bonus additions less the cash lump sums paid is provided.

In case of the unfortunate death of the life assuror within the term of the policy,
the basic sum assured plus any bonus additions is provided. This is over and
above the earlier payouts.

C) Endowment plan:-

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 It is a participating (with profits) insurance plan that offers the following
features:

i) It provides financial support to the family by way of a lump sum payment

in case of the unfortunate death of the life assured within the term of the
policy.
ii) It provides a lump sum payment to the life assures on survival up to
maturity. The lump sum mentioned is the basic sum assured plus any
bonus additions.

D) Unit linked youngster plan:-

HDFC Unit linked Young Star plan is designed to provide a lump sum to the
child at maturity. It also provides financial security to the child in his future,
even in case of the insured parent’s unfortunate death during the policy term.
The Unit linked Young Star plan also gives the option of additional protection
against the six common critical illnesses. Your premiums are invested in units
of the investment funds of your choice, based on the prevailing unit price. On
maturity the value of the units will be paid. On death (or critical illness, if
chosen) the selected basic sum assured is paid, and the policy continues until
maturity. Following a valid death or critical illness claim, we will pay the future
premiums (at the level originally chosen at inception) into your policy, as and
when they would have fallen due.

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 LIST OF MAJOR COMPITITOIRS

1. Aviva Life Insurance

2. Bajaj Allianz
3. Birla Sun Life Insurance
4. ICICI Prudential Life Insurance
5. Kotak Mahindra Old Mutual Life Insurance Limited
6. Life Insurance Corporation of India (LIC)
7. Max New York Life Insurance
8. MetLife India Insurance
9. Reliance Life Insurance
10. SBI Life Insurance
11. ShriRam Life Insurance
12. TATA AIG Life Insurance
13. BHARTI AXA
Head Office –
Edinburgh, Scotland (UK)
• Worldwide Operations and Presence

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 ACHIVEMENT OF THE COMPANY

Awards and Recognition

Year Award

• 2003 Company of the Year

• 2002 Company of the Year
• 2001 Best Personal Pension Provider
• 2000 Company of the Year
• 1999 Company of the Decade
• 1996-99 Company of the year
• 1995 4 star service award
• 1992-94 Overall best company
• 1991 3 star service award
• Standard Life has been awarded the "Raising Standards" quality mark.

This shows that the Company:

• uses clear language to describe their products on key documents,

• have appropriate products and
• Provide a quality service for the customers.

 Money Marketing Awards

• Company of the Year every year

from 1999 to 2005

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 • Best Pension Provider 2004 and
2005
• Best Group Pension Provider every
year from 1998 to 2003
• Best Personal Pension Provider
every year since 1998 to 2003
• Best Life Investment Product
Provider 2003 and 2004
• Gold Award in the Poster Campaign
Category (Advertising) 2004

 Money facts Investment, Life & Pensions Awards

• Best Pension Product 2003, 2004

and 2005
• Best Pension Service 2003, 2004
and 2005

 Bank hall Achievement Awards

• Pension Provider of the Year 2003
and 2004

 Financial Adviser Provider Awards

• Overall Winner in 1999, 2000, 2001

and 2002

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 • Pensions Provider of the Year 1999,
2000, 2001, 2002 and 2003
• Pensions Company of the Year
2004
• Individual Pensions Company of the
Year 2004
• Group Pensions Provider of the
Year 2004
• Health Insurance Company of the
Year 2004

 Financial Adviser Service Awards

• Company of the Year every year

from 1997 to 2001
• 5 Star Life and Pensions Provider
every year from 1996 to 2004
• 5 Star Investment Provider every
year from 1996 to 2002 and 2004

 Pensions Management Administration and Service Awards

• Overall Winner - Personal Pensions

2003
• Overall Winner - Stakeholder
Pensions 2002 and 2003

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• Overall Winner - Group Personal
Pensions 2002 and 2004
• Member Communications -
Personal Pensions, Group Personal Pensions & Stakeholder Pensions 2003
• Backup (branch office) - Personal
Pensions 2003

Industry Profile

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INSURANCE

Insurance is a legal contract that protects people from the financial costs that result
from loss of life, loss of health, or property damage. Insurance provides a means for
individuals and societies to cope with some of the risks faced in everyday life.
People purchase contracts of insurance called policies from a variety of insurance
called policies, from a variety of insurance organizations.

Insurance is conceived as a method of saving of these losses , embodying the

principle of co-operation existed in the early civilization . There is evidence that
during the Aryan civilization , loss of profits in industry was insured by the village
co-operative in India .

Almost everyone living in modern , industrialized countries buys insurance for

instance laws in most states require people who own a car to buy insurance before
driving it on public roads . lenders require anyone who finances the purchase of
home or car with borrowed money to insure that property .business partners take out
life insurance on each other to make sure that business will succeed even if one of
the partner dies.

Two types of insurance:

Life insurance:

Life insurance is a contract for payment of a sum money to the person assured on the
happening of the event insured against . usually the contract also provides for the
payment of premium periodically to the corporation by the assured.

General insurance:

General insurance includes many areas of insurance like maraine, motor, eng, health,
fire etc the contract provides for the payment of an amount on the happening of
some contingency .These types of contracts are annual in nature.

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A. Origin and Development of the Industry

Historians believe that insurance first developed in sydney by babylonia . The

merchants and traders of these transferred and pooled their money to protect
themselves and pirates.

In the 18th century BC, Babylonian king samurai developed a code a law, known as
the code of specific rules governing the practices of early risk sharing
activities . Insurance also developed during the 1700s in the North American
colonies. In 1730 Benjamin frank contributed for the insurances of houses from loss
by fire.

Early development of insurance was unorganized . it was mainly insuring

commercial risks. The insurance in human life started in England in 1538 AD for
term assurance for 12 months ,which was issued for the first time . in 1705 amicable
society started paying assurance on death a term carried on unto 1757. in 1762
equitable society was the first co. to start charging premium on scientific basis.

In INDIA, the references to insurance history relates to the East India Co when some
policies were issued on the life of brusiers in foreign currency.

In 1870-Bombay mutual fund insurance ltd

In 1874-Oriental Govt security life assurance Co ltd

In 1896-Bart insurance co. and 1897 empire of India

In 1905-no of insurance company life Hindustan co-op united India, Bombay life
national-Asian were setup up during the above period.

After 2nd world war several new companies were established ,most important being
new assurance co. others were Jupiter ,lame ,Andhra ,industrial metropolation and
new asiastic.

After 1st world war the peace of industrlization was accelarted in India. the swedish
movement had already gathered momentum and nationalism in the twenties,
Offices began to take due share of the country business .it continuously progressed
and there seemed to be steady rise in per capita insurance in the country.

27
The government started to exercise control with the passing of insurance act, 1912
There was a marked increase in the volume of insurance business and other
form of business .in 1938 the deptt of insurance under the authority of the
supritendent of insurance was established. This act was futher amended in 1950 .
before nationalization there were 97 operatng centers almost all urban. There were
245 different insurance companies then.

Nationalization of the insurance business in 19 jan 1956. lic act was passed by the
parliament and recived presidential assent on 18 june1956 and act came on 1 sept
1956.

Insurance benefits the society by allowing individuals to share the risks faced by
many people but it also serves the other economic and societal functions because
insurance is affordable , banks can make loans with the assurance that the loan with
the assurance is easily covered against damage. Insurance also provides the capital
that communities need to quickly rebuild and recover economically from natural
disasters.

B.Growth and Present Status of the Industry

The Indian insurance has finally opened up. The first move towards liberalization
came with Ampohra committee report in 1993. which recommended the
privatization of insurance .Indian stands to gain witty the following major
advantages :

• Better products with more reasonable and affordable pricing.

• Quick servicing
• Increased saving rate
• Long –term funds for infrastructure development will be available to the
country.
• Large inflows of foreign capital.

It is debated that the insurance business does not produce profit in the first five year
.

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Cross subsidization is a feature of the Indian market . event the fire portfolio which
is considered profitable, cross subsidizes the other department . tariff reductions are
likely to reduce further. Insurer will have to institute proper claims management
process in order to extract proficiencies.

The government is soon to present the new model for tax saving life insurance
companies at internationally competitive advantage and sketch their alliances
accordingly.

Infect alliances related to distribution rather than to product or technology will prove
most valuable in the long run . Brokers will come into the market for first time and
there is bound to be intense competition As a result of this in the multi channels of
distribution.

Since beginning of the world ,man has always felt insecurity for his assets and even
life . there is uncertainty in every aspect of life, its an old saying that only death and
tax are certain. Uncertainties in every aspect of life is exposés to our assets to
losses and consequently endless problems. A fire in the factory may burn everything
and owner only of income with huge capital is finished but insurance will come for
rescue if its taken. Insurance does not only provide reimbursement but some
suggestive measures also to reduce the effect of hazards and losses .earthquake,
flood , riot, strike, theft, explosion etc.

Some of the common dangers to our assets. Moreover life insurance besides
providing financial assistance to the insured, these policies provides investment
opportunities and even pension plans at market interest rate.

C. FUTURE OF THE INDUSTRY

In Indian market , the opportunity for insurance companies is huge. The efforts of
government companies have lacked sincerity , as there is large untapped market
even after 61 years of nationalization . according to sources 30 cores people of India
can afford insurance however only 8 cores of them have taken away. Life insurance
in a year is collected is only 2% of GDP in India with that of 12 % in USA.

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Total non –life insurance premium is mere of 0.6% of GDP which is almost
negligible. on the basis of this it can be sold that there is huge scope for insurance in
India. The latest foreseen in Indian market and the success of liberalized market in
emergent economies to make this opportunity . to avail this may international
players including the world leaders have setup their business in India form the last so
many years. i.e. Hdfc-slic, Icici Prudential life ,Max life insurance corporation ,
Bajaj-allianz..

30
SWOT Analysis of the HDFC Standard Life Insurance Company

STRENGTH

1. HDFC has one of the highest brand recalls of around 80% (source: AC
Neilson ORG MARG).
2. HDFC has different types of training methods for their FC’s, Agents or
Advisor. For Example Disha training, IRDA training, Basic training and
induction, Advanced training.
3. Financial Expertise.
4. Range of solutions.
5. Having good network.
6. One of the most aggressive marketing strategies.
7. Training provided to all people associated with the bank provides services like
checking the plan or policies online.
8. Free switching options online informing customers about the performance of
their investment by sending monthly reports and statements
9. Have around 145000 financial advisor

WEAKNESS

1. They are unable to target rural area as compare to LIC.

2. Poor awareness for new products in consumers Poor Distribution network.
3. Negligence to customers after the investment is sold.
4. Very Huge Premium of policies compared to major rival LIC.
5. Target Upper class people only.
6. All Brochures are in English only.

31
 7. Sometimes right advice is not given to the customers.
8. The full charges are not revealed to the customers

OPPORTUNITIES

In India still there is a big market for insurance field.

1. 75% of Indian market is still untapped.
2. Attract more people by providing more customer centric products.
3. Strong brand of the bank helps to boost sales in market.
4. No.1 in adapting new technologies like online search etc.
5. Tie up with brokers also having a large data base of the customers.
6. Getting leads from the branch members.

THREATS

1. Many private players are coming into the market.

2. Some brands in the market gives there product with more features.
3. .LIC, ICICI & Bajaj Allianz is the major competitor with better network.

4. Threats from other banks selling same types of investments.

5. Change in the policies of IRDA.
6. Change in the mentality of people
7. Fear of the market to crash down.
8. Employee attrition.

32
FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

MARKETING DETAILS

Marketing generally refers as the task of creating, promoting and delivering goods
And services to consumers and business. Marketing managers seeks to influence the
Level of timing and composition of demand to meet the organization’s objectives.
Marketing people are involved in 10types of entities: goods, services, experiences,
Events, persons, places, properties, organization, information and ideas. The
Marketing concept rests on four pillars: target market, customer needs, integrated
Marketing and profitability.
“Marketing is defined as a societal process by which individuals and groups obtain
What they need and want through creating, offering and freely exchanging products
And services of value with others.
The basic four P’s of marketing are PRODUCT, PRICE, PLACE and
PROMOTION.

The last few years have seen an increased attention to mutual funds across all genres
of investors’ big or small, individuals or corporate.

FINANCIAL DETAILS

IMPORTANCE OF FINANCE

Finance is regarded as the life blood of a business enterprise. This is because in the
Modern money oriented economy. Finance is the one of the basic foundation of all
Kind of electronic activity. It is the master key which provides access to the entire
Source for being employed in manufacturing and merchandizing activities. It has
Rightly been said the business needs money to make more money. However it
is also
True that money begets more money, only when it is properly managed. Hence,
Efficient management of every business enterprise is closely linked with efficient
Management of its finance.

33
MEANING OF BUSINESS FINANCE

In general finance may be defined as the provision of money at the time it is wanted.
However, as a management function it has a special meaning. Finance function may
Be defined as the procurement of funds and their effective utilization. Some of the
Authoritative definitions are as follows:
“Business finance is that business activity which is concerned with the acquisition
and
Conservation of capital funds in meeting financial needs and overall objectives of far
Business enterprise.”
“Business finance can broadly be defined as the activity concerned with planning
Rising, controlling and administrating of the funds used in the business.”

34
 RECRUITMENT AND SELECTION

RECRUITMENT:

Recruitment is concerned with developing suitable techniques for attracting more

and more candidates. The aim of personnel planning is to determine the needs for
persons both in terms of number and type. For deciding about the number both
present and future requirements should be taken into account. If there are expansion
plans in near future then these requirements should also be considered. Besides
number, the type of persons needed is also important. The educational and technical
requirements to manage various jobs should e properly analyzed so that right type of
persons are employed.
Recruitment is sometimes confused with employment. The two are not one and the
same. Recruitment is just one step in the process of employment. Recruitment is a
linkage activity bringing together those with jobs and those seeking jobs. When
more persons apply for jobs then there will be scope for recruiting better persons.

DEFINITION :

“Recruitment is the process of searching for prospective employees and stimulating

and encouraging them to apply for jobs in an organization.”

RECRUITMENT POLICY :
It specifies the objective of recruitment and provides a framework for the
implementation of the recruitment programme. A recruitment policy may involve

35
commitment to broad principles such as filling vacancies with the best-qualified
individuals. It may also involve the organizational system to be developed for
implementing recruitment programme and procedure to be employed.

ELEMENTS OF GOOD RECRUITMENT POLICY :

A good recruitment policy must contain the following elements:
1) Organizational objectives :
Both short term and long term organizational objectives must be taken
into consideration.
Identification of recruitment needs :
The recruiters should prepare profiles for each category of workers and
accordingly work out the main specifications, decide the sections,
departments or branches where they should be placed.
2) Preferred sources of recruitment :
The sources of recruitment should be identified properly.
3) Criteria of selection and preferences :
Selection and preferences should be based on conscious thought and se-
rious deliberation.
4) Monetary aspects :
The cost of recruitment and financial implications of the same have to
be kept in mind also.

PRE-REQUISITES OF GOOD RECRUITMENT POLICY :

1) It should be in conformity with the general personnel policies.
2) It should be flexible enough to meet the changing needs of the
organization.

36
 3) It should provide employees with job security and continuous employment.
4) It should integrate organizational needs and employee needs.
5) It should match the qualities of the employees with the requirements of the
work for which they are employed.
6) It should highlight the necessity of establishing job analysis.

FACTORS AFFECTING RECRUITMENT :

Every organization, big or small has to engage in recruitment of persons, recruitment

has two aspects-
1) To find out the number of vacancies to be notified and the type of applicants
needed to fill them.
2) To approach the potential applicants to apply for such vacancies.

No organization can recruit successfully without taking into

consideration the following factors –
1) The Economic Factors –
The economic conditions of a country influence the recruitment process
in all organization. The globalization and liberalization of Indian
economies since 1991 onwards has resulted in a boom in financial
services in India. As a result of the new economic policy, the demands
of well
2) The Social Factors –
These also affect the recruitment policy of an organization. Social
changes in the past two decades in India, have forced organization to

37
 place increased emphasis on recruitment. The mentality of modern
employees has changed from just any job to a satisfying career.
3) The Technological Factors –
New technology have created new jobs and existing jobs have
undergone rapid changes. Several old jobs have disappeared from the
scene.

4) The Legal Factors –

The different legislative policies governing child labour, night shifts,
bonded labour etc. have brought legal environment to a major factor.

PROCESS OF RECRUITMENT -

It passes through the following stages :

1) Recruitment process begins when personnel department receives
requisition for recruitment from any department of the company.
2) Locating and developing the sources of required number and type of
employees.
3) Identifying the prospective employees with required characteristics.
4) Developing the techniques to attract the desired candidates.
5) The next stage in the process is to stimulate as many candidates as
possible.
6) Evaluating the effectiveness of recruitment process.

38
PROCESS OF RECRUITMENT COMPANY ADOPTS :

Personnel Job
Planning Analysis

Recruitment
Planning

Strategy
Development

Searching

Screening

Evaluation Selection
and control

39
SOURCES OF RECRUITMENT –

Before an organization actively begins to recruit applicants it should consider the

mostly likely source of the type of employee it needs. Some companies try to
develop new sources while most try to tackle the existing sources they have. These
sources accordingly may be termed as internal and external.

Internal Sources –
This is one of the important sources of recruitment. The employees already
working in the organization may be more suitable for higher jobs than those
recruited outside. Internal sources consist of the following :
1) Present Employees :
Promotions and transfers among the present employees can be a good
source of internal recruitment.
2) Employee Referrals :
In an organization with a large number of employees referrals can
provide quite a large pool of potential organizational members.
3) Former Employee :
These are another internal source of recruitment. Some retired
employees may be willing to come back to work.
4) Previous Employees :
Those who have previously applied for jobs can be contacted by mail.

External Sources :
These are as follows –
1. Advertisement

40
 2. Professional Organization
3. Data Bank
4. Walk in
5. Recruiting Agencies
6. Competitors
7. Displaced Persons
8. E-recruitment
12. Cold calling

RECRUITMENT PROCESS COMPANY ADOPTS –

1) Internal sources
2) Advertisement
3) Consultants
4) Data banks

SELECTION OF FINANCIAL CONSULTANT

UNDERSTANDING SELECTION PROCESS

Recruitment function helps the organization to develop a pool of prospective human
resources. It is difficult for the HR manager to employ the suitable people out of the
pool. Infact, many organizations face critical problems in choosing the people.
Selection techniques and methods reduce the complexities in choosing the right
candidates for the job. After identifying the sources of human resources, searching
for prospective employees and stimulating them to apply for jobs in an organization,

41
the management has to perform the function of selecting the right employees at the
right time. The obvious guiding policy in selection is the intention to choose the best
person who have good social contact. The objective of the selection decision is to
choose the individual who can most successfully perform the job from the pool of
qualified candidates. The selection procedure is the system of functions and devices
adopted in a given
company to ascertain whether the candidate specifications are matched with the job
specifications and requirements or not.
The selection process can be successful if the following requirements are satisfied:
 Someone should have the authority to select. This authority comes
from the employment requisition, as developed by an analysis to the
workload and work force.
 There must be some standard of personnel with which a prospective
employee may be compared, i.e. a comprehensive job description and
job specification should be available before hand.
 There must be a sufficient number of applicants from whom the
required number of employees may be selected.
The ability of an organization to attain its goal effectively and to develop in a
dynamic environment largely depends upon the effectiveness of its selection
programme. If the right person is selected, he is valuable asset to the organization
.

SELECTION PROCEDURE:
Selection procedure employs several methods of collecting information about the
candidates qualifications, experience, physical and mental ability, nature and
behavior, knowledge and aptitude for judging whether a given applicant is suitable
or not for the job. Therefore the selection procedure is not a single act but is

42
essentially a series of methods or stages by which different types of information can
be secured through various selection techniques. At each step facts may come to
light, which are useful for comparison with the job requirement and employee
specifications.
Steps in Scientific Selection Procedure:
 Job analysis
 Recruitment
 Application form
 Written examination
 Preliminary interview
 Tests
 Medical examination
 Reference checks
 Line manager s decision

IN DETAIL EXPLANATION:
(A) JOB ANALYSIS:
Job analysis is the basis for selecting the right candidates. Every organization should
finalize the job analysis, job description, job specification and employee
specifications before proceeding to the next step of selection.

(B) HUMAN RESOURCE PLAN:

Every company plans for the required number of and kind of employees for a future
date. This is the basis for recruitment function.

(c) RECRUITMENT:

43
Recruitment refers to the process of searching for prospective employees and
stimulating them to apply for jobs in an organization. It is the basis for the remaining
technologies of the screening the candidates in order to select the appropriate
candidates for the jobs.

(D) DEVELOPMENT OF BASES FOR SELECTION:

The company has to select the appropriate candidates from the pool of applicants.
The company develops or borrows the appropriate bases/techniques for screening
the candidates in order to select the appropriate candidates for the jobs.

(E) APPLICATION FORM:

Application form is also known as application blank. The techniques of application
blank are traditional and widely accepted for securing information from the
prospective candidates. It can also be used as a device to screen the candidates at the
preliminary level. Many companies formulate their own style of application forms
depending upon the requirement of
information based on the size of the company, nature of business activities, type and
level of the job etc. Information is generally required on the following items in the
application forms:
 Personal background information
 Educational qualifications
 Work experience
 Salary (drawing and expecting)
 Personal attainments including likes and dislikes
 References

44
(F) WRITTEN EXAMINATION:
Organizations have to conduct written examination for the qualified candidates after
they are screened on the basis of the application blanks so as to measure the
candidate s ability in arithmetical calculations, to know the candidate s attitude
towards the job, to measure the candidate s aptitude, reasoning, knowledge in
various disciplines, general knowledge and English language.

(G) PRELIMINARY INTERVIEW:

The preliminary interview is to solicit necessary information from the prospective
applications and to assess the applicant s suitability to the job. An assistant in the
personnel department may conduct this preliminary interview. The information thus
provided by the candidate may be related to the job or personal specifications
regarding education, experience, salary
expectations, attitude towards job, age, physical appearance and other requirements
etc. Thus, preliminary interview is useful as a process of eliminating the undesirable
and unsuitable candidates. If a candidate satisfies the job requirements regarding
most of the areas, he may be selected for further process. Preliminary interviews are
short and known as stand up interviews or sizing up of the applicants or screening
interviews. However, certain required amount of care is to be taken to ensure that the
desirable workers are not eliminated. This interview is also useful to provide the
basic information about the company to the candidate.

(H) BUSINESS GAMES:

Business games are widely used as a selection technique for selecting management
trainees, executive trainees and managerial personnel at junior, middle and top
management positions. Business games help to evaluate the applicants in the areas
of decision-making, identifying the potentialities, handling the situations, problem-

45
solving skills, human relations skills etc. participants are placed in a hypothetical
work situation and are required to play the role situations in the game. The
hypothesis is that the most successful candidate in the game will be most successful
one on the job.

GROUP DISCUSSION is used in order to secure further information regarding the

suitability of the candidate for the job. Group discussion is a method where groups
of the successful applicants are brought around a conference table and are asked to
discuss either a case study or subject
matter. The candidates in the group are required to analyze, discuss, find alternative
solutions and select the sound solution. A selection panel then observes the
candidates in the areas of initiating the discussion, explaining the problem, soliciting
unrevealing information based
on the given information and using common sense, keenly observing the discussion
of others, clarifying controversial issues, influencing others, speaking effectively,
concealing and mediating arguments among the participants and summarizing or
concluding aptly.
The selection panel, based on its observation, judges the candidate s skill and ability
and ranks them according to their merit.
In some cases, the selection panel may also ask the candidates to write the summary
of the group discussion in order to know the candidate s writing ability as well.

Types of test:
Tests are classified into six classes, each class is again divided into different types of
tests. They are:
APTITUDE TESTS:

46
These tests measure whether an individual has the capacity or latent ability to learn a
given job if given adequate training. Aptitudes can be divided into general and
mental ability or intelligence and specific aptitudes such as mechanical, clerical,
manipulative capacity etc. General aptitude test is of two types namely intelligence
quotient (IQ) and emotional quotient (EQ).
(1) Skill tests:
These tests measure the candidate s ability to do a job perfectly and intelligently.
These tests are useful to select the candidates to perform artistic jobs, product
design, design of tools, machinery etc. The candidates can be selected for assembly
work, testing and inspection also.
(2) Mechanical aptitude tests:
These tests measure the capabilities of spatial visualization, perceptual speed and
knowledge of mechanical matter. These tests are useful for selecting apprentices,
skilled, mechanical employees, technicians etc.
(3) Psychomotor tests:
These tests measure abilities like manual dexterity, motor ability and eyehand
coordination of candidates. These tests are useful to select semi-skilled workers and
workers for repetitive operations like packing and watch assembly.
(4) Clerical aptitude tests:
These types of tests measure specific capacities involved in office work. Items of
this tests include spelling, computation, comprehension, copying, word measuring
etc.

ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something as these tests
are concerned with what one has accomplished. These tests are more useful to
measure the value of a specific achievement when an organization wishes to employ

47
experienced candidates. These tests are classified into (a) job knowledge test and (b)
work sample test. Thus, the candidate s achievement in his career is tested regarding
his knowledge about the job and actual work experience.

SITUATIONAL TESTS:
This test evaluates a candidate s in a similar real life situation. In this test the
candidate is asked either to cope with the situation or solve critical situations of the
job.
(1) Group discussion:
This test is administered through the group discussion approach to solve a problem
under which candidates are observed in the areas of initiating, leading, proposing
valuable ideas, conciliating skills, oral communicating skills, coordinating and
concluding skills.
(2) In basket:
Situational test is administered through in basket method. The candidate in this test
is supplied with actual letters, telephone and telegraphic message,reports and
requirements by various officers of the organization, adequate information about the
job and organization. The candidate is asked to take decisions on various items
based on the in basket information regarding requirements in the memoranda.

INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work,
job, occupations, hobbies and recreational activities. The purpose of this test is to
find out whether a candidate is interested or disinterested in the job for which he is a
candidate and to find out in which area of the job range/occupation the candidate is
interested. The assumption of this test is

48
that there is a high correlation between the interest of a candidate in a job and job
success. Interest inventories are less faked and they may not fluctuate after the age
of 30.

PERSONALITY TESTS:
These tests prove deeply to discover clues to an individual s value system, his
emotional reactions and maturity and characteristic mood. They areexpressed in
such traits like self-confidence, tact, distrust, initiative, emotional control, optimism,
decisiveness, sociability, conformity,objectivity, patience, fear, judgment dominance
or submission, impulsiveness, sympathy, integrity, stability and self-confidence.
(1) Objective tests:
Most personality tests are objective tests as they are suitable for group testing and
can be scored objectively.
(2) Projective tests:
Candidates are asked to project their own interpretation of certain standard stimulus
basing on ambiguous pictures, figures etc. under these tests. Personality tests have
disadvantages in the sense that sophisticated candidates can fake them and most
candidates give socially acceptable
answers. Further, personality inventories may not successfully predict job success. A
number of corrective measures tried as personality inventories are widely subject to
faking. They are:
 Forced choice of Edward s personnel preference schedule.
 Gordon personal profile.
 The Minnesota Multi-phasic Inventory offers different methods for
identifying faking. The faking can be countered by repeating the same
question in different parts to measure consistency.

49
MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent
upon globalization, competitiveness and the consequent customer-centered
strategies. Organization have to develop multidimensionaltesting in order to find out
whether the candidates possess a variety of skills or not, candidate s ability to
integrate the multi-skills and potentiality to apply them based on situational and
functional requirement.

50
(J) INTERVIEW:
Final interview follows after tests. This is the most essential step in the process of
selection. In this step the interviewer matches the information obtained about the
candidate through various means to the job requirements and to the information
obtained through his own observation during the interview. The different types of
interviews are:

PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure
the basic and non-job related information. The interaction between the candidate and
the personnel manager when the former meets the latter to enquire about the
vacancies or additional particulars in connection with the employment advertisement
is an example of the informal interview.

(2) Unstructured interview:

In this interview, the candidate is given the freedom to tell about himself by
revealing his knowledge on various items/areas, his background, expectations,
interest etc. Similarly, the interviewer also providesinformation on various items
required by the candidate.

CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive or
experts on various areas of job knowledge, skill, talent etc. This interview may take
various forms like:
(1) Back ground information interview:

51
This interview is intended to collect the information which is not available in the
application blank and to check that information provided in the application blank
regarding education, place of domicile, family, health, interest, hobbies, likes,
dislikes and extra curricular activities of the applicant.
(2) Job and probing interview:
This interview aims at testing the candidate s job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, methods of handling those areas
etc.
(3) Stress interview:
This interview aims at testing the candidate s job behavior and level of
understanding during the period of stress and strain. The interviewer tests candidate
by putting him under stress and strain by interrupting the applicant from answering,
criticizing his opinions, asking questions pertaining to unrelated areas, keeping silent
for unduly long periods after he has finished
speaking etc. Stress during the middle portion of the interview gives effective
results. Stress interview must be handled with utmost care and skills. This type of
interview is often invalid, as the interviewer s need for a job and his previous
experience in such type of interviews may inhibit his actual behavior under such
situations.
(4) Group discussion interview: There are 2 methods of conducting group discussion
interviews, viz. group interview method and discussion interview method. All the
candidates are
brought into one room and are interviewed one by one under group interview. This
method helps a busy executive to save valuable time and gives a fair account of the
objectivity of the interview to the candidates. Under the discussion interview
method, one topic is given for discussion to

52
the candidates who assemble in one room and they are asked to discuss the topic in
detail. This type of interview helps the interviewer in appraising
certain skills of the candidates like initiative, inter-personal skills, dynamism,
presentation, leading, comprehension, collaboration etc. Interviewers are at ease in
this category of interview because of its informality and flexibility.
(5) Formal and structured interview:
In this type of interview, all the formalities, procedures like fixing the value, time,
panel of interviewers, opening and closing, intimating the candidates officially etc.
are strictly followed in arranging and conducting interview. The course of the
interview is preplanned and structured, in advance, depending on job requirements.
(6) Panel interview:
A panel of experts interview each candidate, judges his performance individually
and prepares consolidated judgement. This type of interview is known as panel
interview. Interviewers for middle level and senior level mangers are normally
conducted are the panel of experts.
(7) Depth interview:
In this interview, the candidate would be examined extensively in core areas of job
skills and knowledge. Experts test the candidate s knowledge in depth. Depth
interviews are conducted for specialist jobs.

DECISION-MAKING INTERVIEW:
After the experts including the line managers of the organization in the core areas of
the job examine the candidates, the head of the department/section concerned
interviews the candidates once again, mostly through informal discussion. The
interviewer examines the interest of the candidate in the job, organization,
reaction/adaptability to the working conditions, career

53
planning, promotional opportunities, work adjustment and allotment etc. The
personnel manger also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities
etc. The head of the department and the personnel manager exchange the view and
then they jointly inform their decision to the
chairman of the interview board, which finally makes the decision about the
candidate s performance and their ranks in the interview. Most of the organizations
have realized that employee s positive attitude matters much rather than employee s
skill and knowledge. Employees with positive attitude contribute much to the
organization. Hence, interviewers look for the candidates with the right attitude
while making final decision.

(K) MEDICAL EXAMINATION:

Certain jobs require certain physical qualities like clear vision, perfect hearing
unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical
examination reveals whether or not a candidate possesses these qualities. Medical
examination can give the following information:
 Whether the applicant is medically suited for the specific job
 Whether the applicant has health problems or psychological attitudes
likely to interfere with work efficiency or future attendance.
 The offer. Whether the applicant suffers from bad health which should
be corrected before he can work satisfactorily
 It reveals the applicant s physical measurements and
 It is used to check the special senses of the candidates.

(L) REFERENCE CHECKS:

54
After completion of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the
names of references in their application forms. These references may be from the
individuals who are familiar with the candidates academic achievement or form the
applicant s previous employer, who is well versed with the applicant s job
performance, and sometimes from coworkers. Incase the reference check is from the
previous employer; information for the following areas may be obtained. They are
job title, job description, and period of employment, pay and allowances, gross
emoluments, benefits provided, rate of absence, willingness of the previous
employer to employ the candidate again and soon. Further, information regarding
candidate s regularity at work, character, progress etc. can be obtained.
Often a telephone call is much quicker. The method of mail provides detailed
information about the candidate s performance, character and behavior. However, a
personal visit is superior to the mail and telephone methods and is used where it is
highly essential to get the detailed, actual
information, which can also be secured by observation. Reference checks are taken
as a matter of routine and treated casually or omitted entirely in many organizations.
But a good reference check used sincerely will fetch useful and reliable information
to the organization.

(M) FINAL DECISION BY THE LINE MANAGER:

The line manager concerned has to make the final decision whether to select or
reject a candidate after soliciting the required information through techniques
discussed earlier. The line manager has to take much care in taking the final decision
not only because of economic implications but alsobecause of behavioral and social
implications. A careless decision of rejecting would impair the morale of the people
and they would suspect the selection procedure and the basis of selection of this

55
organization. A true understanding between line managers and personnel managers
should be established to take proper decisions.

(N) JOB OFFER:

Thus, after taking the final decision, the organization has to intimate this decision to
the successful as well as unsuccessful candidates. The organization offers the job to
the successful candidates either immediately or after some time depending upon its
time schedule. The candidate after receiving job offer communicates his acceptance
to the offer or requests the company to modify the terms and conditions of
employment or rejects the offer.

(O) EMPLOYMENT: The company may modify the terms and conditions of
employment as
requested by the candidate. The company employs those candidates who accept the
job offer with or with out modification of terms and conditions of employment and
place them on the job.
With the employment of the candidate the recruitment and selection process is
completed.

56
RECRUITMENT AND SELECTION AT HDFC STANDARD LIFE

Recruitment is the process of attracting prospective candidates who are likely to get
selected. Recruitment process starts with the drafting of advertisement for the
required post mentioning the name of the post, qualifications required, place of
posting etc. the advertisement is released in all major and national newspaper across
the country. Not only print media, but other media like internet is also used for
posting the advertisement. Placement agencies and educational institutions are
considered if the requirements are for fresh graduates. Employee references by are
also encouraged. After receiving the applications, it is initially screened by HR
division based on minimum requirements and qualifications prescribed for the post.
Screened applications from HR division are sent to respective divisional heads for
their screening in case of applications for higher posts. Selection is the process of
selecting right candidates from the list of prospective candidates. Selection process
involves tests, interviews, group discussions, psychometric tests or a combination of
these depending on the nature or sensitivity of the level and the post. For technical
posts, tests are used as elimination means while for some other posts like
management trainee, tests are not used as elimination means. The shortlisted
candidates are called for the final interview. Regret letters are sent to those who are
not shortlisted. Background checking of the shortlisted candidates is done to ensure
that they will fit with the culture of the organization. Job offers are made to the
selected candidates and they are asked to give their confirmation that they accept the
job offer. On receiving their confirmation, appointment letter is prepared by
personnel and administration division and given to the candidate at the time of
joining. Salary offer is a part of Human resource division while personnel and
administration division handles salary administration.

57
 METHODOLOGY

Generally two types are data are used for any research, which are very important for
the research, these can be discussed as –
1. Primary Data
2. Secondary Data

Primary Data –

Primary data are the data which are original in character, obtained for the first time,
being collected from the respondents, either through questionnaire or through
personal interviews. This can be collected by various methods like
• Surveys
• Observation
• Experimentation
• Measurements
• Personal interview
• Telephonic interview
• Questionnaires
But my chosen way of collecting data was through Personal Interview and
Questionnaires.

Secondary data –

Secondary data is the data, which has been collected by someone else for some other
purpose and is used by the researcher in his research for study.

58
Various sources of secondary data are Catalogues, Brochures, Magazines and
Websites, Television etc. In this project I made use secondary data for gaining more
and more about the company, its products and various benefits an advisors will be
getting. For acquiring this knowledge I have studied secondary sources like
company websites, brochures, paper presentations etc.

Analysis of data / Statistical data

After the data is collected the researcher has to analyze the collected data, the
researcher has to classify the data into purposeful and usable category. The analysis
can be done by means of various statistical measures. For representation of the data
use of bar charts, Pie Chart is made.

Interpretation of data

After data analysis is done, the obtained information is interpreted and various
inferences are made and also conclusions are drawn related to the objectives, which
have been listed, in the beginning of project.

59
 FINANCIAL REPORT

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH

31, 2008

Schedule Previous Year:

Rupees(2008) Rupees (2007)
INCOME
Management Fee 12 133,69,74,621 96,50,56,908
Interest 13 3,19,650 2,71,503
Dividend 1,82,62,800 1,65,99,156
Other Income 14 84,55,729 2,65,85,358
136,40,12,800 100,85,12,925
EXPENDITURE
Staff Expenses 15 36,50,46,679 19,12,96,703
Administrative and Other Expenses 23,01,25,621 25,73,13,844
Depreciation 3 6,83,28,410 6,65,90,054
66,35,00,710 51,52,00,601
PROFIT/(LOSS) BEFORE TAX 70,05,12,090 49,33,12,324
Provision for Tax (Net of Deferred
tax)
24,22,38,100 17,71,68,866
Provision for Fringe Benefit Tax 35,10,000 —
PROFIT/(LOSS) AFTER TAX 45,47,63,990 31,61,43,458
Balance brought forward from
Previous year 5,27,67,278 20,89,58,430
Profit Available for Appropriation 50,75,31,268 52,51,01,888
Appropriations:
Short provision of Income Tax
for earlier years (net) — 21,72,933
General Reserve 4,54,76,399 3,16,14,346
Capital Redemption Reserve — 25,00,00,000
Preference Dividend 2,50,00,000 3,96,57,535
Tax on Preference Dividend 35,06,250 51,82,745
Education Cass on Equity
Dividend (FY 2003 - 04) —
2,57,900
Interim Equity Dividend Paid 8,80,63,500 —
Tax on Interim Equity Dividend Paid 1,23,50,906 —

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Proposed Equity Dividend 8,80,63,500 12,58,05,000
Tax on Proposed Equity Dividend 1,23,50,906 1,76,44,151
Balance carried forward to the
Balance Sheet
23,27,19,807 52786549
Earnings Per Share 16.94 10.78

BALANCE SHEET AS ON MARCH 31, 2008

Schedule March 31, 2008

FUNDS EMPLOYED 2008 2007

SHAREHOLDER’S FUNDS
Share Capital 1 50,16,10,000 50,16,10,000
Reserves and Surplus 2 59,54,32,963 3700459630
109,70,42,963 87,16,14,035
APPLICATION OF FUNDS
FIXED ASSETS 3
Gross Block 81,70,23,962 79,49,92,631
Less: Depreciation 19,28,39,455 12,62,51,492
Net Block 62,41,84,507 66,87,41,139
Capital Advances 3,25,993 11,15,856
63,05,10,500 66,98,56,995
INVESTMENTS 4 51,36,82,426 33,26,90,199
DEFERRED TAX ASSET 5 4,64,76,435 1,24,04,535
CURRENT ASSETS,

Sundry Debtors 6 5,94,48,534 2,42,20,249

Cash and Bank Balances 7 1,14,77,426 1,01,93,726
Other Current Assets 8 6,027 4,823
Loans and Advances 9 67,95,60,821 75,80845609

Current Liabilities
10 19,97,83,840 17,39,08,663
Provisions
11 64,43,35,366 84,41.19,206
s

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 31,85,52,149 49,24,60,812

NET CURRENT ASSETS (9,36,26,398) (1433,37,694)

109,70,42,963 87,16,14,035

62
 ANLAYSIS AND FINDINGS

From the analyzed data I could find that –

 The main source of the recruitment is through external sources i.e. through
advertisement.
 The other source of recruitment is through references , natural market and
consultants.
 Maximum prospects fulfils all the criteria prescribed by the IRDA.
 Research shows that the Financial Advisors generally belong to the age of 30-
50 years
 It is found that the company provides both types of training and mainly
prospects goes for the online training.
 Every year company recruits as many as 50 Advisors in order to increase the
sales force of the company.
 Most of the recruited people are aware of the insurance sector and the person
who are not aware of the insurance sector are made aware through the training
before sitting for the test.
 It has been found through the studies that most of the candidate recruited
belongs the banking and insurance sector . It means that they are having some
knowledge about the insurance sector.
 For most of the prospects attending 21 days training is a major problem. As
the timings for the training are full time 10:30 am to 5.00 p.m.

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 For most of the prospects they join HDFC STANDARD LIFE for the extra

income.
 Most of the recruited people continue working as a Financial Advisor.

LIMITATIONS

1) This Project Report is restricted only for the interviewed people.

2) Biased reply of the respondents like giving wrong information.

3) Non availability of the data or the relevant information of the respondent.

4) Sometimes it happens that the respondent was busy so as to get the

information it becomes difficult

5) The project is done in near by areas of the Aundh Branch of the company &
therefore findings of it may not be applicable in other areas.

6) Time Constraints – The duration of the project is only 2 months. In this

duration we have to finish the project so the sample size considered for this
project is also limited which may give some misleading outputs.

7) Although ICICI Prudential is a well known brand, it invests heavily in the

advertisements, but somehow the concept of financial advisor was not known
to the customers and it requires great amount of efforts to convince the
various benefits to them.

64
 CONCLUSION AND SUGGESTION

1. It is found that in the last five years the Indian economy has progressed, which
has increased the average purchasing power & the insurance sector has
contributed significantly in this.
2. Since last five to six years many Private Company has entered in insurance
sectors & because of which the Indians are having number of options in front
of them investing their money & to safeguard the life.
3. While doing this project it is found that recruiting of the advisor is done by the
Unit Manager, and the parameters on which the advisors are to be recruited
are :
• Income Level – 1.2lacs to 2 lacs per annum
• Marital Status – Married
• Age – above 25 years
• Minimum Education – Graduation
• Staying in the same city for more than 5 years
4. The study of the profile of the advisor is depending on their industry
background i.e. their work experience and the age wise distribution.
5. The level of awareness of the prospects about the private insurance company
has increased because of the heavy advertising ad marketing by the companies
over the period of time.

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 6. It is important to appoint only those prospects as financial advisor, who can
give & generate long term business for the company, so to analyze the
prospects & study their status is very important thing.
7. Most of the prospects wanted to join, as their first preference to earning extra
money, second to start business with no capita investment, third to
Association with the No. 1 Private Life Insurance Company.

Based on the findings in the Research following suggestions are made –

 Finding new prospects is like breathing, so Unit Manager should be in regular

touch with the market so that he will gets some good prospects.

 Company should go for regular Market Survey for finding out the smart
worker who can stay under the Managers Sales Team, and will generate long
term business.

 Branch Manager should take the feedback from the existing advisors so that
he can easily understand the advisors problem as well s he can recommend
new changes.

 The company should concentrate on the rural part so that they can compete
with LIC India, and can generate some business from there as it is found that
most of the Private Life Insurance companies are targeting the urban market.

66
 Company should follow the pull strategy where it can use advertising media,
by preparing attractive Ads, through Newspaper, T.V. , and radio can increase
the awareness about the company & will help in improving the market share.

 Unit Manager should meet regularly with the existing advisors so that he can
find out their problems & also take their suggestions.

 Most of the Indian families still believe in the LIC. They don’t feel
comfortable with other brands. In such cases ICICI Prudential can opt for
descriptive advertisements how our solutions are better than the traditional
business solutions.

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 BIBLIOGRPHAY

WEBSITES :

) www.hdfcslic.com
) www.insuranceguide.com
) www.economictimes.com

BOOKS :

1) HUMAN RESOURCE MANAGEMENT : SHASHI K. GUPTA

2) PERSONNEL MANAGEMENT : C. B. MAMORIAL

JOURNALS & ARTICLES :

1) IRDA JOURNAL

68
 2) BROUCHERS & REPORTS OF COMPANY

ANNEXURE

“RECRUITMENT AND SELECTION OF FINANCIAL ADVISORS “

Name:
Age : Sex :
Address :
Phone No. : Mobile No. :
Email Id :
(if any)

Q1. How many candidates are generally recruited for financial advisor through
various sources of recruitment ?

• Natural market
• References
• Advertisement
• Consultants

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Q2. Does the people recruited fulfils all the criteria for being financial advisor
(criteria- married , age>25 yrs , graduate , living in a city for more than 5 years ,
income should be nearly 2 lacs)?

• Yes
• No
• Partially

Q3. Which age group of people are generally forms the majority as a Financial
Advisor?

• 25-30 years r
• 30-50 years
• 50-65 years

Q4. Which kind of trainings are generally provided by the HDFC-SLIC for the
Advisors ( which is compulsory by the IRDA before sitting for the test)?

• Online Training
• Classroom Training
• Both

Q5. Which kind of training does generally future financial advisors goes for?

• Online Training

70
• Classroom Training

Q6. How many Financial Advisors are generally recruited by the company (at the
kothrud)?

• >10
• 10>25
• 25>50
• 50>60

Q7. Do the recruited people do have the knowledge of insurance sector?

• Yes
• No

Q8. Are you satisfied with the procedure of test conducted by the IRDA
department?
• Yes
• No
• Can’t Say

Q9. Do all the recruited people continue working as Financial Advisor?

• Yes
• No

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• Can’t Say

Q10. What is the average work experience of Financial Advisor in HDFC

STANDARD LIFE?

• No experience
• More than 2 years
• Less than 2 years

Q11. Who are mostly appointed for the post of Financial Advisor?

• Banking & Finance

• Medical Science
• IT
• Lawyer
• Teacher
• Others

Q12. Do everyone attend 21 days training program ?

• Yes
• No
• Can’t say

Q.13 Why one generally want to join HDFC STANDARD LIFE as Financial
Advisor ?
• Pinnacle Programme

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• Extra Income
• No Capital

73
74