A

PROJECT REPORT
ON
RECURITMENT & SELECTION IN
AXIS BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTERS OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED TO: -

SUBMITTED BY:-

________________

PRIYA SOLANKI
MBA- 3rd SEMESTER

BHARATI VIDYAPEETH INSTITUE OF

MANAGEMENT & RESEARCH
Academic Study Centre, New Delhi
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade A University

ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude to Axis Bank for having
allowed me to get trained. I am indebted to Dr. Vikas Nath (Director) and
Mrs. Neelam Sharma, at Bharati Vidyapeeth Deemed University. Whose able and
continuous guidance has culminated in the production of this report.
Nevertheless, I am grateful to all the office and staff of Axis Bank for their
cooperation in the accomplishment of endeavor.

PREFACE
A hallmark of any premier business school is its willingness and ability to constantly
explore and implement new ideas and practices in the field of management education.
Institute constantly reorients their programs in order to keep abreast of changing
development.
The initial interaction between school students and industry takes place when the
students undergo project is usually for knowing the process for recruitment, selection,
industrial relations & training of that institution. It is often the exposure to corporate
culture that a student receives, particularly true for students without prior work
experience.
As a part of curriculum of MBA have joined AXIS BANK, New Delhi for summer
training & project. AXIS BANK is a service oriented
Co-operative democratic institution engaged in giving the best in banking services to
its customers.
During my training at AXIS BANK, Head Office I was taken project on marketing &
financial services of AXIS BANK.
The main purpose of the study is to know the policies of the bank regarding marketing
& financial services, which helped me in gaining knowledge about the different
working pattern of different departments of a bank.

TABLE OF CONTENT

Particular
Acknowledgement
Preface
CHAPTER-1 : INTRODUCTION
CHAPTER-2 : RESEARCH METHODOLOGY
CHAPTER-3 : LITERATURE REVIEW
CHAPTER-4 : DATA ANALYSIS
Findings & Recommendations
Conclusion
Bibliography
Questionnaire

Page No.

CHAPTER-1
INTRODUCTION

OVERVIEW OF THE INDIAN BANKING INDUSTRY

The evolution of the modern commercial banking industry in India can be traced to
1786 with the establishment of bank of Bengal in Calcutta. Three presidency banks
were set up in Calcutta, Bombay, and Madras. In 1860, the limited liability concept
was introduced in banking, resulting in the establishment of joint stock banks like
Allah bad Bank ltd. , PNB ltd. bank of Baroda ltd. and bank of India ltd. In 1921, the
three presidency banks were amalgamated to form the Imperial Bank of India, which
took on the role of a commercial bank, a bankers bank and a banker to the Govt. The
establishment of the RBI as the central bank of the country in 1935 ended the quasicentral banking role of the Imperial Bank of India. In order to serve the economy in
general and the rural sector in particular, the All India Rural Credit Survey Committee
recommended the creation of a state partnered bank taking over the Imperial Bank
of India and integrating with it, the former state owned and state associate banks.
Accordingly, the State bank of India (SBI) was constituted in 1955. Subsequently in
1959, the SBI (Subsidiary Bank) Act was passed, enabling the SBI to take over 8
former state-associate banks as its subsidiaries. I n 1969, 14 private banks were
nationalized followed by 6 private banks in 1980. Since 1991 many financial reforms
have been introduced substantially transforming the banking industry in India.

NATURE AND SCOPE OF CRM

The Customer is King! This credo is more powerful, relevant and true today than
ever before. In a truly customer driven economy, success depends on a companys
ability to be with the customer on a round with clock basissatisfying all their
product and service specific needs. Simply stated, Customer Relationship
Management (CRM) is about finding, getting, and retaining customers.
Customer Relationship Management is one of the hottest and most talked about
topics in the industry today and for good reason. Industry analysts recently
reported that CRM expenditures will grow from $2.8 billion in1999 to $11 billion
by 2003.
CRM is all about building long term business relationships with your customers. It
is best described as the blending of internal business process: SALES,
MARKETING AND CUSTOMER SUPPORT WITH TECHNOLOGY. CRM
solutions empower business to more efficiently and effectively manage the
activities that affect their relationship with their customers. The ultimate goal is to
meet and exceed customer expectations, create a positive customer experience and
build customer loyalty.
CRM should finally enable A TARGETED MUTUALLY BENEFICIAL
PROFITABLE RELATIONSHIP WITH INDIVIDUALS AND GROUPS.

Key CRM Principles: A good CRM solution should allow for:

Differentiate Customers All customers are not equal; recognize and reward
best customers disproportionately.

Differentiate Offerings Customers appreciate customized offerings.

Keep existing customers Its 5 to 10 percent cheaper to retain current

customers than acquire new ones.

Maximize Lifetime Value Exploit up-selling and cross-selling potential.

7

Increase Loyalty Loyal customers are more profitable.

DIFFERENTIATING CUSTOMERS
Most CRM systems allow for very little freedom to customize to specific
industry verticals. Since the customers needs emerge from the products and
offerings of the industry, CRM system should respond to the customer needs.
Understanding each customer becomes particularly important. And the same
customers reaction to a cellular company operator may be quite different as
compared to a car dealer. Besides for the same product or a service not all
customers can be treated alike and CRM needs to differentiate between a high
value customer and a low value customer.
What CRM needs to understand while differentiating customers is

Sensitivities, Tastes, Preferences and Personalities.

Lifestyle and age.

Culture, background and education.

Physical and physiological characteristics.

DIFFERENTIATING OFFERINGS
CRM solution needs to differentiate between a low value customer and a high
value customer

Low value customer requiring high value customer offerings.

Low value customer with potential to become high value in near future.

High value customer requiring high value service.

High value customer requiring low value service

KEEP EXISTING CUSTOMERS

Grading customers from very satisfied to very disappointed shall help the
organization in always improving its customer satisfaction levels and scores. As
the satisfaction level for each customer improves so shall the customer retention
with the organization.
MAXIMIZING LIFE TIME VALUE
By identifying life stage and life trigger points by customer, marketers can
maximize share of the purchase potential. Thus the single adults shall require a
new car stereo and as he grows into a married couple his needs grow into
appliances.

INCREASE LOYALTY
It is an endeavor of ant corporate to see that its customers are advocate for the
company and its products. Any company will like its mindshare status from being
a suspect to being an advocate. Suspect-----prospect-----customer client----supporter-----advocate.
Customers have to invest in terms of its product and service offerings to its
customers. It has to innovate and meet the very needs of its customers so that
remain as advocates on the loyalty curve.
Referral sales invariably are low cost high margin sales. It has also the implication
of being not on time scale. Besides, referral sales are likely to induce more
satisfaction.

SUMMARIZING CRM ACTIVITIES

The CRM cycle can be briefly described as follows:

1. Learning from customer and prospects.

2. Creating value for customers and prospects.
3. Creating loyalty.
4. Acquiring new customers.
5. Creating profits.

Figure: 1.1

BENEFITS OF CRM
1. Profitability-Driven Account Planning - Enables commercial banks to better
understand the overall needs of their customers and drive customer profitability.
Key components include profitability-based customer segmentation and integrated
alignment and performance management to allow commercial banks to coordinate
their efforts and drive cross-selling of non-interest, fee based products to the
appropriate customers.
2. End-to-End Credit Management - Enables the efficient and consistent
processing of commercial loans. Key components include consistent credit request
processing and streamlined account origination which helps increase the quality of
credit portfolios. Compliance with regulatory procedures (such as Regulation B
loan notification requirements) is built into the workflow of the solution set.

10

3. Relationship-Driven Sales - Includes components such as intelligent client

coverage and enterprise call reporting that help commercial banks better
coordinate limited sales and product resources to drive revenue growth.
4. Customer-centric Service - Allows commercial banks to increase customer
satisfaction and retention. Components such as value-added personalized service
and proactive outbound service enable organizations to provide fast, efficient, and
superior service to their customers.
5.

Banker Productivity - Includes streamlined proposal and credit

document generation. Efficient product installation improves banker productivity
by automating time-consuming manual tasks.

CRM STRATEGY - The basic CRM strategy is to align an entire organization

to service the customer better.
CRM CUSTOMER SERVICE STRATEGY - CRM tools are capable of
delivering all customer information to everybody in need. Detailed customer
reports can be accessed with customer service histories, customer preferences
and priorities.
CRM SALES MANAGEMENT STRATEGY - CRM offers plenty of tools
for automating and managing sales processes. All sales persons will have access
to key customer, product and company data and all sales managers can
effectively monitor and co-ordinate their team.
CRM DOCUMENT MANAGEMENT STRATEGY - Banks hosts all
enterprise data in a web-based centralized always updated CRM database
accessible from every where at every time. No duplicate data, no double entry,
no data loss. Superior encryption techniques with safe data transfer and sharing
tools. Real-time data backup strategy.
CRM MARKETING STRATEGY - Banks know that the best ever marketing
strategy is to combine all enterprise resources to find new customers, retain
existing customers and to make them referrers. A wide range of CRM
marketing tools are available for this purpose.

11

CRM strategy also covers many other business processes. The simplicity in use,
open-source features, and web-based CRM allow users to develop right CRM
strategies according to their industry, customer preferences, sales territories, etc.

CRM PROCESS
Understanding customers tastes and requirements with precision and effectiveness
and serve them in the way they want. (CRM) process management tools are specially
designed for streamlining small and medium business CRM practices.
As you know, a satisfied customer can bring many other customers to you, and CRM
is the process of doing it in a planned way. CRM process management tools follow a
set of simple customizable rules that helps in planning, implementing and analyzing
CRM processes in the right way.
CRM PROCESS MANAGEMENT INVOLVE THE FOLLOWING STEPS

Getting all key information needed for CRM process.

Sorting the key information to find right opportunities.

Delivering appropriate information to users who need.

Planning marketing management, contact management, leads management,

sales management and after-sales management processes.

Pleasing customers with respect to set rules and plans.

Regularly keeping the contact with the customers.

Providing real-time reports and analysis about on-going processes

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COMPANY PROFILE

INTRODUCTION
Commercial banking services which includes merchant banking, direct finance
infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and
other related financial services. As on 31-Mar-2009, the Group has 827 branches,
extension counters and 3,595 automated teller machines (ATMs).
Axis Bank was the first of the new private banks to have begun operations in 1994,
after the Government of India allowed new private banks to be established. The Bank
was promoted jointly by the Administrator of the specified undertaking of the Unit
Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e.
National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The
Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding
(other than promoters) at 57.79%.The Bank's Registered Office is at Ahmedabad and
its Central Office is located at Mumbai. The Bank has a very wide network of more
than 853 branches and Extension Counters (as on 30th June 2009). The Bank has a
network of over 3723 ATMs (as on 30th June 2009) providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve excellence.
1.2 History of Axis bank:
1993: The Bank was incorporated on 3rd December and Certificate of business on
14th December. The Bank transacts banking business of all description. UTI Bank
Ltd. was promoted by Unit Trust of India, Life Insurance Corporation of India,
General Insurance Corporation of India and its four subsidiaries. The bank was the
first private sector bank to get a license under the new guidelines issued by the RBI.

13

1997: The Bank obtained license to act as Depository Participant with NSDL and
applied for registration with SEBI to act as `Trustee to Debenture Holders'. Rupees
100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four
subsidiaries Rs 1.5 crores each.
1998: The Bank has 28 branches in urban and semi urban areas as on 31 st July. All
the branches are fully computerized and networked through VSAT. ATM services are
available in 27 branches. The Bank came out with a public issue of 1,50,00,000 No. of
equity shares of Rs 10 each at a premium of Rs 11 per share aggregating to Rs 31.50
crores and Offer for sale of 2,00,00,000 No. of equity shares for cash at a price of Rs
21 per share. Out of the public issue 2,20,000 shares were reserved for allotment on
preferential basis to employees of UTI Bank. Balance of 3,47,80,000 shares were
offered to the public. The company offers ATM cards, using which account-holders
can withdraw money from any of the bank's ATMs across the country which is interconnected by VSAT. UTI Bank has launched a new retail product with operational
flexibility for its customers. UTI Bank will sign a co-brand agreement with the
market, leader, Citibank NA for entering into the highly promising credit card
business. UTI Bank promoted by India's pioneer mutual fund Unit Trust of India
along with LIC, GIC and its four subsidiaries.
1999: UTI Bank and Citibank have launched an international co-branded Credit card.
UTI Bank and Citibank have come together to launch an international co-branded
credit card under the MasterCard umbrella. UTI Bank Ltd has inaugurated an off site
ATM at Ashok Nagar here, taking the total number of its off site ATMs to 13.m
2000: The Bank has announced the launch of Tele-Depository Services for Its
depository clients. UTI Bank has launch of `iConnect', its Internet banking Product.
UTI Bank has signed a memorandum of understanding with equitymaster.com for ebroking activities of the site. Infinity.com financial Securities Ltd., an e-broking outfit
is Typing up with UTI Bank for a banking interface. Geojit Securities Ltd, the first
company to start online trading services, has signed a MoU with UTI Bank to enable
investors to buy\sell demat stocks through the company's website. India bulls have
signed a memorandum of understanding with UTI Bank. UTI Bank has entered into
an agreement with Stock Holding Corporation of India for providing loans against
shares to SCHCIL's customers and funding investors in public and rights issues.
ICRA has upgraded the rating UTI Bank's Rs 500 crore certificate of deposit
14

programmed to A1+. UTI Bank has tied up with L&T Trade.com for providing
customized online trading solution for brokers.
2001: UTI Bank launched a private placement of non-convertible debentures to rise
up to Rs 75 crores. UTI Bank has opened two offsite ATMs and one extension counter
with an ATM in Mangalore, taking its total number of ATMs across the country to
355. UTI Bank has recorded a 62 per cent rise in net profit for the quarter ended
September 30, 2001, at Rs 30.95 crore. For the second quarter ended September 30,
2000, the net profit was Rs 19.08 crore. The total income of the bank during the
quarter was up 53 per cent at Rs 366.25 crore.
2002: UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a
Director of the Bank w.e.f. January 02, 2002. A C Shah, formerchairman of Bank of
Baroda, also retired from the banks board in the third quarter of last year. His place
continues to be vacant. M Damodaran took over as the director of the board after
taking in the reins of UTI. B S Pandit has also joined the banks board subsequent to
the retirement of K G Vassal. UTI Bank Ltd has informed that Shri Paul Fletcher has
been appointed as an Additional Director Nominee of CDC Financial Service
(Mauritius) Ltd of the Bank.And Shri Donald Peck has been appointed as an
Additional Director (nominee of South Asia Regional Fund) of the Bank. UTI Bank
Ltd has informed that on laying down the office of Chairman of LIC on being
appointed as Chairman of SEBI, Shri G N Bajpai, Nominee Director of LIC has
resigned as a Director of the Bank.
2002: B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank.UTI Bank
Ltd has informed that in the meeting of the Board of Directors following decisions
were taken: Mr Yash Mahajan, Vice Chairman and Managing Director of Punjab
Tractors Ltd were appointed as an Additional Director with immediate effect. Mr N C
Singhal former Vice Chairman and Managing Director of SCICI was appointed as an
Additional Director with immediate effect. ABN Amro, UTI Bank in pact to share
ATM. UTI Bank Ltd has informed BSE that a meeting of the Board of Directors of
the Bank is scheduled to be held on October 24, 2002 to consider and take on record
the unaudited half yearly/quarterly financial results of the Bank for the half
year/Quarter ended September 30, 2002. UTI Bank Ltd has informed that Shri J M
Trivedi has been appointed as an alternate director to Shri Donald Peck with effect
from November 2, 2002.
15

2003: UTI Bank Ltd has informed BSE that at the meeting of the Board of Directors
of the company held on January 16, 2003, Shri R N Bharadwaj, Managing Director of
LIC has been appointed as an Additional Director of the Bank with immediate effect.UTI Bank, the private sector bank has opened a branch at Nellore. The bank's
Chairman and Managing Director, Dr P.J. Nayak, inaugurating the bank branch at GT
Road on May 26. Speaking on the occasion, Dr Nayak said. This marks another step
towards the extensive customer banking focus that we are providing across the
country and reinforces our commitment to bring superior banking services, marked by
convenience and closeness to customers. -UTI Bank Ltd. has informed the Exchange
that at its meeting held on June 25, 2003 the BOD have decided the following: 1) To
appoint Mr. A T Pannir Selvam, former CMD of Union Bank of India and Prof.
Jayanth Varma of the Indian Institute of Management, Ahmedabad as additional
directors of the Bank with immediate effect. Further, Mr. Pannir Selvam will be the
nominee director of the Administrator of the specified undertaking of the Unit Trust of
India (UTI-I) and Mr. Jayanth Varma will be an Independent Director. 2) To issue
Non-Convertible Unsecured Redeemable Debentures up to Rs.100 crs, in one or more
tranches as the Bank's Tier - II capital. -UTI has been authorized to launch 16 ATMs
on the Western Railway Stations of Mumbai Division. -UTI filed suit against financial
institutions IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85cr in
dues. -UTI bank made an entry to the Food Credit Programme it has made an entry
into the 59 cluster which includes private sector, public sector, old private sector and
co-operative banks. -Shri Ajeet Prasad, Nominee of UTI has resigned as the director
of the bank. -Banks Chairman and MD Dr. P. J. Nayak inaugurated a new branch at
Nellore.-UTI bank allots shares under Employee Stock Option Scheme to its
employees. -Unveils pre-paid travel card 'Visa Electron Travel Currency Card'
-Allotment of 58923 equity shares of Rs 10 each under ESOP. -UTI Bank ties up with
UK govt fund for contract farm in -Shri B S Pandit, nominee of the Administrator of
the Specified Undertaking of the Unit Trust of India (UTI-I) has resigned as a director
from the Bank wef November 12, 2003. -UTI Bank unveils new ATM in Sikkim.
2004:

Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible

Debenture Issue, issue fully subscribed -UTI Bank Ltd has informed that Shri Ajeet
Prasad, Nominee of the Administrator of the Specified Undertaking of the Unit Trust
of India (UTI - I) has been appointed as an Additional Director of the Bank w. e. f.
January 20, 2004.-UTI Bank opens new branch in Udupi-UTI Bank, Geojit in pact for
16

trading platform in Qatar -UTI Bank ties up with Shriram Group Cos -Unveils
premium payment facility through ATMs applicable to LIC UTI Bank customers
Metal junction (MJ)- the online trading and procurement joint venture of Tata Steel
and Steel Authority of India (SAIL)- has roped in UTI Bank to start off own
equipment for Tata Steel. -DIEBOLD Systems Private Ltd, a wholly owned subsidiary
of Diebold Incorporated, has secured a major contract for the supply of ATMs an
services to UTI Bank -HSBC completes acquisition of 14.6% stake in UTI Bank for .6
m -UTI Bank installs ATM in Thiruvananthapuram -Launches Remittance Card' in
association with Remit2India, a Web site offering money transfer services
2005: - UTI Bank enters into a banc assurance partnership with Bajaj Allianz General
for selling general insurance products through its branch network. -UTI Bank
launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore.
2006: -UBL sets up branch in Jaipur -UTI Bank unveils priority banking lounge.

VISION, MISSION AND VALUES

VisionTo be the preferred brand for total financial banking solAXISons for both
corporate and individuals
Mission
o

Customer Service and Product Innovation tuned to diverse needs of

Individual and corporate clientele.

o

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Values
o

Customer Satisfaction through

Providing quality service effectively and efficiently

Smile, it enhances your face value" is a service quality stressed on

Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

17

Vision20 15 and Core Values

VISION 2015:

To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of

technology

CO REVALUES

Customer Centricity
Ethics
Transparency
Teamwork
Ownership

18

ORGANIZATION STRUCTURE OF AXIS BANK

19

Figure: 1.2

SWOT ANALYSIS OF AXIS BANK

Strength
1.

Support of various promoters.

2.

High level of services.

3.

Knowledge of Indian market.

Weakness
1.

Market capitalization is very low.

2.

Not having good image.

3.

Not been able to position itself correctly.

Opportunities
1.

Growing Indian bank sectors.

2.

People are becoming more service oriented.

3.

Opportunities to be explored in global market.

Threats
1.

Threat from various competitors.

2.

Foreign banks

3.

Govt. banks, e.g. SBI, PNB etc

4.

Private sector competitors like HDFC, AXIS

5.

Future market trends.

6.

Advent of MNC banks

20

COMPETETIORS PROFILE

HDFC Bank Limited

is a major Indian financial services company based in India,

incorporated in August 1994, after the Reserve Bank of India allowed establishing private
sector banks. The Bank was promoted by the Housing Development Finance Corporation, a
premier housing finance company (set up in 1977) of India. HDFC Bank has 1,725 branches
and over 5,000 ATMs, in 780 cities in India, and all branches of the bank are linked on an
online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82
billion.[3] For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore
(US$875.56 million), up 33.1% from the previous fiscal. Total annual earnings of the bank
increased by 20.37% reaching at 24,263.4 crore (US$5.41 billion) in 2010-11.
It is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and
Punjab National Bankits main competitors.

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91
billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the
year ended March 31, 2011. The Bank has a network of 2,533 branches and 6,301 ATMs in
India, and has a presence in 19 countries, including India.
ICICI Bank offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialised subsidiaries
in the areas of investment banking, life and non-life insurance, venture capital and asset
management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,

21

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches
in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).

Punjab National Bank, was founded in 1894 and today is the second largest state-owned
commercial bank in India with about 5000 branches across 764 cities. It serves over 37
million customers. The bank has been ranked 248th biggest bank in the world by the Bankers
Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion.
PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and
Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.
Punjab National Bank is one of the Big Four banks of India, along with ICICI Bank, State
Bank of India and HDFC Bankits main competitors.[2]

Allahabad Bank (Hindi: ), which began operations in 1865, now has its headquarters in Kolkata. Currently the bank has 2402 branches across the country. The Chairman
and Managing Director of the bank is Shri J P Dua. The bank has a branch in Hong Kong and
a representative office in Shenzen.

Andhra Bank was registered on 20 November 1923 and commenced business on 28

November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00
lakhs. The Bank crossed many milestones [clarification needed] and the Bank's Total Business as on
30.06.2008 stood at Rs.83,256 Crores with a Clientele base over 1.74 Crores. [citation needed] The
Bank is rendering services through 2139 Business Delivery Channels consisting of 1371
22

branches, 66 Extension Counters, 38 Satellite Offices and 664 ATMs spread over 21 States
and 2 Union Territories as at the end of June, 2008. All Branches are 100% computerized,
1186 units viz., 1101 Branches, 68 Extension Counters, 15 Service Centres networked under
Cluster Banking solution and providing "Any Branch Banking(ABB)". Real Time Gross
Settlement (RTGS) Facility and National Electronic Fund Transfer (NEFT) facility has been
introduced in 723 Branches. To provide value-added services [clarification needed] to Customers, the
Bank has set up its own 664 ATMs as on 30.06.2008. Of which 03 [clarification needed] Mobile ATMs
and two with Biometric access.

State Bank of India (SBI) is the largest Indian banking and financial services company (by
turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank
traces its ancestry to British India, through the Imperial Bank of India, to the founding in
1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta
and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of
India. The government of India nationalised the Imperial Bank of India in 1955, with the
Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008,
the government took over the stake held by the Reserve Bank of India.
SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group,
with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local
Head Offices and 57 Zonal Offices that are located at important cities throughout the country.
It also has around 130 branches overseas.
With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking
behemoth and is one of the largest financial institution in the world. It has a market share
among Indian commercial banks of about 20% in deposits and loans. T The State Bank of
India is the 29th most reputed company in the world according to Forbes Also SBI is the only
bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by
Brand Finance and The Economic Times in 2010.

23

The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank,
Punjab National Bank and HDFC Bankits main competitors.

Bank of Baroda (BoB) is the third largest bank in India, after the State Bank of India and the
Punjab National Bank and ahead of ICICI Bank.[1] BoB has total assets in excess of Rs. 2.27
lakh crores, or Rs. 2,274 billion, a network of over 3,403 branches and offices, and about
1,100 ATMs. IT plans to open 400 new branches in the coming year. It offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialised subsidiaries and affiliates in the areas of
investment banking, credit cards and asset management. Its total business was Rs. 4,402
billion as of June 30.[2]
As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number
should climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth
branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides
branches, BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs
with a couple of people.
The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in
the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial
banks of India, was nationalised on 19 July 1969, by the government of India.

Canara Bank is a state-owned financial services company in India. It was established in

1906, making it one of the oldest banks in the country. As on 2009 November, the bank had a
network of 3057 branches, spread across India. The bank also has offices abroad in London,
Hong Kong, Moscow, Shanghai, Doha, and Dubai.

24

Corporation Bank is an India-based banking company based in Mangalore, India. The bank
was founded with an initial capital of Rs. 5000 (USD 100), and first days canvassed
resources of less than one USD 1, has currently (31 March 2004) 12,724 full time employees,
and operates from several branches in India.
The Bank is a Public Sector Unit with 57.17% of Share Capital held by the Government of
India. The Bank came out with its Initial Public Offer (IPO) in October 1997 and 37.87% of
Share Capital is presently held by the Public and Financial Institutions. The Banks Net Worth
stood at Rs.3,054.92 crores as on 31 March 2005.
The bank has the distinction of the first Indian bank to publish its financial results (1998-99)
conforming to US GAAP.

The Industrial Development Bank of India Limited (IDBI) is one of India's leading public
sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an "other public
sector bank". It was established in 1964 by an Act of Parliament to provide credit and other
facilities for the development of the fledgling Indian industry. [2] It is currently 10th largest
development bank in the world in terms of reach with 1437 ATMs, 861 branches including
one overseas branch at DIFC, Dubai and 560 centers including two overseas centres at
Singapore & Beijing.[3] Some of the institutions built by IDBI are the National Stock
Exchange of India (NSE), the National Securities Depository Services Ltd (NSDL), the Stock
Holding Corporation of India (SHCIL), the Credit Analysis & Research Ltd, the ExportImport Bank of India(Exim Bank), the Small Industries Development Bank of India(SIDBI),
the Entrepreneurship Development Institute of India, and IDBI BANK, which is owned by the
Indian Government.IDBI Bank is on a par with nationalized banks and the SBI Group as far
as government ownership is concerned.It is one among the 26 commercial banks owned by
the Government of India.The Bank has an aggregate balance sheet size of Rs. 2,53,378 crore
as on March 31, 2011. IDBI Bank's operations during the financial year ended March 31,

25

AWARDS & RECOGNITIONS

Following are the recognition received by the Bank during the Year 2009:

Business World ,Best Bank Awards- Fastest Growing Large Bank

Business Today, Best Bank Awards - India's Best Bank, India's Fastest
Growing Bank, India's Most Consistent Bank

ET Intelligence Group-Best Bank 2009

NDTV Profit Business Leadership Awards 2009 -Best bank Private Sector

Forbes Fab 50-The Best of Asia Pacific's Biggest Listed Company

FE Best Banks Award-Best New Private Sector bank,Rank 1

Talisma - Customer Appreciation Award 2009

D & B Best Bank Awards - Best Private Bank

Lafferty Award - Best Annual Report-India

26

CUSTOMER SERVICE IN BANKING OPERATIONS

Cheque Drop Box Facility
RBI's Committee on Procedures and Performance Audit on Public Services has
recommended that both the drop box facility and the facility for acknowledgement of
the cheques at the regular collection counters should be available to customers and no
branch should refuse to give an acknowledgement if the customer tenders the cheques
at the counters.
Issue of Cheque Books: The Committee has observed that some banks do not
allow depositors to collect their cheque book at the branch but insist on
dispatching the cheque book by courier to the depositor. Further, it is stated by the
Committee that the depositor is forced to sign a declaration that a despatch by the
courier is at the depositor's risk and consequence and that the depositor shall not
hold the bank liable in any manner whatsoever in respect of such despatch of
cheque book. Committee has observed this as an unfair practice and advised banks
to refrain from obtaining such undertakings from depositors. Banks should also
ensure that cheque books are delivered over the counters on request to the
depositors or his authorized representative.
Statement of Accounts / Pass Books: The Committee has noted that banks
invariably show the entries in depositors passbooks / statement of accounts as
"By Clearing" or "By Cheque". Further, in the case of Electronic Clearing System
(ECS) and RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not
provide any details even though brief particulars of the remittance are provided to
the receiving bank. In some cases computerized entries use sophisticated codes
which just cannot be deciphered. With a view to avoiding inconvenience to
depositors, banks are advised to avoid such inscrutable entries in passbooks
statements of account and ensure that brief, intelligible particulars are invariably
entered in passbooks / statements of account. Banks may also ensure that they
adhere to the monthly periodicity prescribed by us while sending statement of
accounts.

27

3.3 Traditional banking activities: Banks act as payment agents by conducting

checking or current accounts for customers, paying cheques drawn by customers on
the bank, and collecting cheques deposited to customers' current accounts. Banks also
enable customer payments via other payment methods such as telegraphic transfer,
EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current
accounts, by accepting term deposits, and by issuing debt securities such as banknotes
and bonds. Banks lend money by making advances to customers on current accounts,
by making installment loans, and by investing in marketable debt securities and other
forms of money lending. Banks provide almost all payment services, and a bank
account is considered indispensable by most businesses, individuals and governments.
Non-banks that provide payment services such as remittance companies are not
normally considered an adequate substitute for having a bank account. Banks borrow
most funds from households and non-financial businesses, and lend most funds to
households and non-financial businesses, but non-bank lenders provide a significant
and in many cases adequate substitute for bank loans, and money market funds, cash
management trusts and other non-bank financial institutions in many cases provide an
adequate substitute to banks for lending savings to
3.4 Accounting for bank accounts
Bank statements are accounting records produced by banks under the various
accounting standards of the world. Under GAAP and IFRS there are two kinds of
accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit
Accounts are Assets and Expenses. This means you credit a credit account to increase
its balance, and you debit a debit account to increase its balance. This also means you
debit your savings account every time you deposit money into it (and the account is
normally in deficit), while you credit your credit card account every time you spend
money from it (and the account is normally in credit).However, if you read your bank
statement, it will say the opposite that you credit your account when you deposit
money, and you debit it when you withdraw funds. If you have cash in your account,
you have a positive (or credit) balance; if you are overdrawn, you have a negative (or
deficit) balance. The reason for this is that the bank, and not you, has produced the
bank statement. Your savings might be your assets, but the bank's liability, so they are
credit accounts (which should have a positive balance). Conversely, your loans are
your liabilities but the bank's assets, so they are debit accounts (which should have a
28

also have a positive balance).Where bank transactions, balances, credits and debits are
discussed below, they are done so from the viewpoint of the account holder which is
traditionally what most people are used to seeing.
3.5 Economic functions
1. Issue of money, in the form of banknotes and current accounts subject to cheque
or payment at the customer's order. These claims on banks can act as money
because they are negotiable and/or repayable on demand, and hence valued at par.
They are effectively transferable by mere delivery, in the case of banknotes, or by
drawing a cheque that the payee may bank or cash.
2. Netting and settlement of payments banks act as both collection and paying
agents for customers, participating in interbank clearing and settlement systems to
collect, present, be presented with, and pay payment instruments. This enables
banks to economies on reserves held for settlement of payments, since inward and
outward payments offset each other. It also enables the offsetting of payment
flows between geographical areas, reducing the cost of settlement between them.
3. Credit intermediation banks borrow and lend back-to-back on their own
account as middle men
4. Credit quality improvement banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers. The
improvement comes from diversification of the bank's assets and capital which
provides a buffer to absorb losses without defaulting on its obligations. However,
banknotes and deposits are generally unsecured; if the bank gets into difficulty
and pledges assets as security, to raise the funding it needs to continue to operate,
this puts the note holders and depositors in an economically subordinated position.
5. Maturity Transformation banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words, they borrow short and
lend long. With a stronger credit quality than most other borrowers, banks can do
this by aggregating issues (e.g. accepting deposits and issuing banknotes) and
redemptions (e.g. withdrawals and redemptions of banknotes), maintaining
reserves of cash, investing in marketable securities that can be readily converted
29

to cash if needed, and raising replacement funding as needed from various sources
(e.g. wholesale cash markets and securities markets).

MARKETING STRATEGY
THE SERVICE MARKETING MIX OF AXIS BANK
PRODUCT
The main products of AXIS Bank are Saving Account, Current Account and Demat
Account. The other products are Home loan, personal loan, Insurance, Credit cards,
etc.
For better marketing of products, the products are categorized under Axis Bank and
Axis Sales.
Products under Axis Bank are

Easy Access Saving Account

Saving Account for Women

Prime Saving Account

Senior Citizens Saving Account

Priority Banking

Corporate Salary Account

Trust /NGOs Saving Account

Resident Foreign Currency Account

Online Trading Account

30

Current Account

Term Deposits

Locker Facilities

NRI Services

Depository Services

Financial Advisory Services

Wealth Management Services

Insurance Solutions Life and General

Retail Loans

Credit Loans

Travel Currency Cards

Remittance Cards

Gift Cards

Saving Account

Current Account

Forex Department

Salary Accounts

Products under Axis Sales are

Home loan

31

Personal loan,

Demat Account

PRICE
The price of the product depends upon the services provided by the Bank on the
respective product to the customers. Detailed pricing changes from time to time and
the same can be found on the website of Axis bank.
PLACE
Place plays an important role in tangibilizing service offerings. Quality of service is
perceived by many customers in the form of place of delivery- locational appeal,
interiors, ambience, etc. If a bank is located in a crowded market the place or location
will be a negative tangibilizes. Providing excellent tangibles in the form of place or
location and interiors is particularly important for appealing to the customers segment.
More recently, some of the private banks in India like AXIS Bank are providing very
attractive tangibles in the form of their locations, exteriors and interiors.
PROMOTION
Promotion can tangibilize services in different forms:

Visualization

Association

Physical representation

Documentation.

Visualization tangibilizes services through hoardings, TV and print campaigns or

advertisements. Physical representation in services has a good promotional appeal to
customers like use of colors to symbolize wealth and status. Service providers use

32

documentation in their promotions in support of their claims for dependability,

popularity and responsiveness
PEOPLE
People are a common factor in every service. And people tangibilize services.
Good

people (means good performance) make good or successful services. Bad

performers deliver bad services.

PROCESS

Customer defined business process- Process innovations and continuous

improvement through people involvement.

Result oriented approach- Each process has been designed by first planning
the desired results.

Axis Bank is constantly taking initiatives to offer the best in class service that
seek to enhance customer experience.

PHYSICAL EVIDENCE

Reduce paper usage- Due to technological innovations such as use of Finacle

software for core banking solutions.

It has positioned it self as a bank which gives higher standard of services

through product innovation.

Satisfies the diverse need of individual and corporate clients.

It is customer centric, and service oriented.

STP OF BANKS
o Segmentation:

33

These banks consider the customer service as the base for

segmentation. These banks segment their market on the
basis of the customer who give emphasis on the services
and believe in using technically advance product.

o Targeting:

These banks are targeting the people of the urban and suburban areas who believe in higher set of product and want
speedy services.

o Positioning:

These banks are positioned as the technically advance and

delivering higher set of customer services.

COMPETITIVE STRATEGY OF AXIS BANK

o For the private sector banks
Axis bank has differentiated against these banks on the base of the maximum area
coverage. In this group some banks have no reach to the some part of the country. So
Axis bank has got the advantage of reach in terms of this segment. The level of
service is same in almost all banks but Axis bank has also got the advantage of the
product innovation which not all the banks are doing in this group.
o For the government sector banks
Axis bank has differentiated itself from this group on the base of the high level of
service quality and through product innovation. In terms of the reach Axis bank is
not anyway near to these but it has created a different set of segment of the people
who believe in the higher set of services.

34

o For the International Banks

For these types of banks Axis bank differentiated itself on the base of the reach and
coverage to the people. The service level is some what same or these are providing
good services than Axis bank is

35

CHAPTER-2
RESEARCH METHODOLOGY

36

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

To study the current practices of Customer Relationship Management (CRM).

To find out the impact of CRM on the profitability of the organization.

To study the factors affecting the CRM practices.

To study the role of information technology in CRM.

MANAGERIAL USEFULNESS OF THE STUDY

The study provides a complete knowledge of various fundamental concept

related to manpower planning, recruitment & selection process.
The study helps in finding the weaknesses ,if any in the organization and the
steps taken to avoid them
The suggestions from the employees will help management to make changes
in the desired field

METHODOLOGY

Instrument used to measure the system in Axis Bank was of primary and secondary
kinds .The primary source of data was through questionnaire schedule. The secondary
source included brochures, annual reports, magazines, employees handbook,
magazines and journals

SELECTION OF SAMPLES:-

Sample size is 20

37

STATISTICAL TOOLS:It is very difficult to have detailed knowledge of employees working in Axis Bank. So
the surveyor has taken 20 samples due to limited resources and time factor. The
management ranks are working in different categories of different department. Thus it
becomes equally justified to plan in such a way that it covers all departments.
TOOLS: Pie chart
Bar diagram
Text and statements

DATA COLLECTION:The questionnaire was served to senior manager, managers and employees. The likerd
scale was used for calculating scores, which is shown in every question immediately
after the table. The points given for each scale are as follows

Strongly agree (5)

Moderately Agree (4)

Strongly Disagree(3)

Moderately disagree(2)

Cant say(1)

DATA COLLECTION METHOD

Points assigned to each 5-point scale*No of responses / Sample size. The remark is
given at the end of each question which is based on following calculation, if the score
is:
4 and above = Excellent

38

3 to 4 = Average
Below 2 = poor
Interpretation is also made in each question on the basis of the table and graph shown
in analysis chapter

QUESTIONNAIRE DESIGN
Questionnaires are one of the most important and commonly used research
instruments to collect primary data.
It Is self-administered process whereby the respondent himself reads the questions
and records his answers without the assistance of an interviewer
Multiple choice questions were asked from the interviewer as it consumes less time
and gives us the exact answers. The main objective of choosing such question was to
extract the clear picture from the customers like what they actually expect from a
good banking system.
RESEARCH DESIGN

Research element: The members selected from the population for doing the
survey constitute the sampling element. A sample of 50 customers was taken
as a sample element.

Extent: The survey was conducted in the Delhi region only.

Time frame: Total time duration for the survey took almost two months.
Sample size: 20 was the sample size of the survey.

SCOPE AND LIMITATIONS OF THE STUDY

SCOPE: Scope of the study is to collect information regarding the manpower planning,
recruitment & selection process of the Axis Bank.
To analyze the level of satisfaction of the employees in respect of the process
followed in the organization

39

40

LIMITATION: The main source of data is primary data

20 samples does not reflect the opinion of employees as whole
Time limit was another limitation and there may be possibility of committing
a general error
Due to change in time ,policies may change

41

CHAPTER-3
LITERATURE REVIEW

42

LITERATURE REVIEW
RECRUITMENT
Recruitment is hiring of employees from outside. Recruitment has been regarded as
the most important function of the HR department , because unless the right type of
people are hired, even the best plans, organization chart and control system would not
do much good.
Recruitment is the discovering of potential applicant for actual or anticipated
organizational vacancies. Accordingly the purpose of recruitment is to locate sources
of manpower to meet the job requirements and job specification.
It is defined as a process to discover the sources of manpower to meet the
requirements
of staffing schedule and to apply effective measures for attracting the
manpower

to adequate number to facilitate effective selection of an effective

workforce
Yoder points out that recruitment is a process to discover the sources of manpower to
meet the requirement of the staffing schedule and to employee effective measures to
attracting that manpower in adequate number to facilitate effective selection of an
effective workforce.
Edwin B Flippo defines recruitment as the process of searching for prospective
employees and stimulating them to apply for the jobs in the organization.
It

is

the process

of

finding and attracting capable applicants

for

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

43

Methods of Recruitment
Dunn and Stephens summaries the possible recruiting methods into three categories,
namely
1: Direct method
2: Indirect method
3: Third party method

DIRECT METHOD
The direct method includes sending of the recruiters to different educational and
professional institutions, employees contact with public, and mannered exhibits. One
of the widely used methods is sending the recruiters to different colleges and technical
schools. This is mainly done with the cooperation of the placement office of the
college. Sometimes, firms directly solicit information form the concerned professors
about student with an outstanding records.
Other direct methods include sending recruiters to conventions and seminars, setting
up exhibits at fairs, and using mobile offices to go the desired centers.

INDIRECT METHOD
Indirect method involves mainly advertising in newspapers, on the radios, in trade and
professional journals, technical magazines and brochures.
Advertisements in newspapers and or trade journals and magazines are the most
frequently used methods. Senior post is largely filled with such methods. Advertising
is a very useful for recruiting blue color and hourly worker, as well as scientific,
professional, and technical employees.
Local newspaper can be good sources of blue collar workers, clerical employees, and
lower level administrative employees.

44

The main point is that the higher the position in the organization the more dispersed
advertisement is likely to be. The search for the top executive might include
advertisement in a national periodical, whereas the advertisement of the blue color
jobs usually confine to the daily newspaper.
According to the Advertisement tactic and strategy in personnel Recruitment,
three main points need to be borne in the mind before an advertisement in inserted.
First, to visualize the type of applicants one is trying to recruit.
Second, to write out a list of advantages the company offers, or why should the reader
join the company.
Third, to decide where to run the advertisement , not only in which area, but also in
which newspaper having a local, state or a nation- wide circulation.

THRID PARTY
These include the use of commercial or private employment agencies, state agencies,
and placement offices of schools colleges and professional associations recruiting
firms, management consulting firms, indoctrination seminars for college professors,
and friends and relatives.
Private employment agencies are the most widely used sources. They charge a small
fee from the applicant. They specialize in specific occupation; general office help,
salesmen, technical workers, accountant, computer staff, engineers and executives.
State or public employment agencies are also known as the employment or labour
exchanges, are the main agencies for the public employment. Employers inform them
of their personnel requirement, while job seekers get information for them about the
type of job are referred by the employer.
Schools and colleges offer opportunities for recruiting their student. They operate
placement services where complete biodata and other particular of the student are
available.

45

Professional organization or recruiting firms maintain complete information records

about employed executive. These firms maintain complete information records about
employed executives. These firms are looked upon as the head hunters , raiders,
and pirates by organization which loose their personnel through their efforts.
Evaluation of the recruitment method
The following are the evaluation of the recruitment method
1: Number of initial enquires received which resulted in completed application forms
2: Number of candidates recruited.
3: Number of candidates retained in the organization after six months.
4: Number of candidates at various stages of the recruitment and selection process,
especially those short listed.
Objective of recruitment
1: To attract with multi dimensional skills and experience that suite the present and
future organization strategies.
2: To induct outsider with new perspective to lead the company.
3: To infuse fresh blood at all levels of organization.
4: To develop an organizational culture that attracts competent people to the company.
5: To search or headhunt people whose skill fit the companys values.
6: To seek out non-conventional development grounds of talent
7: To devise methodology for assessing psychological traits.
8: To search for talent globally not just with in the company.
9: To design entry pay that competes on quality but not on quantum.
10: To anticipate and find people for position that doesnt exists yet.
Recruitment represents the first contact that a company makes with potential
employees. It is through recruitment that many individuals come to know about the

46

company and eventually decide whether they wish to work for it.
The recruitment process should inform qualified individuals about the job so
that applicant can make comparison with their qualification and interest.

Factors affecting Recruitment

There are two types of factors that affect the Recruitment of candidates for the
company.
1: Internal factors: These includes
-

Companys pay package

Quality of work life

Organizational culture

Companys size

Companys product

Growth rate of the company

Role of trade unions

Cost of recruitment

2: External factors: These include

-

Supply and demand factors

Employment rate

Labour market condition

Political, legal and government factors

Information system

47

Factors to be undertaken while formulating recruitment policies

The following factors should be undertaken while formulating the policies -

Government polices

Recruitment sources

Recruitment needs

Recruitment cost

Organizational and personal policies

Theories Regarding Recruitment

Recruitment is two way street: it takes a recruiter has a choice whom to recruit, same
way the prospective employee also has taken the decision whether or not to apply for
the given job vacancy. The individual take the decision usually on three different
basic:
1: The objective factors
2: The critical contact
3: The subjective factor
The objectives theory views that the process of organizational choice as being one
of weighing and evaluating set of measurable characteristic of employment offers,
such pay, benefits , location, opportunity for advancement, the nature of job to
performed, and education opportunities.
Whereas, the critical contact theory suggests that the typical candidates is
unable to make a meaningful differentiation of organizations offers in terms
of objective or subjective factors, because of his limited or very short contact with
the organisation. Choice can be made only when applicant can readily perceive the
factors such as the behaviour of the recruiters, the nature of the physical facilities,
and such as the efficiency in processing paper work association with the application.

48

On the other hand, the subjective theory emphasizes the congruence. Here the
choices are made on highly personal and emotional basis.

Recruitment Process
The actual steps involved in recruitment follow a well defined path:
Application shortlist: In this step, we shortlist the resume received from various
sources based on the suitability for the requirement.
Preliminary Assessment: The short listed candidates go through a preliminary round
of interviews. This interview lays more emphasis on functional competencies. To
have more data on the functional skills, the candidates may be given a business case
for analysis and presentation (This is done for certain positions only).
Final interview: Here the candidates who successfully clear the first round of
interview go through another round of interview with one or more of the functional
heads.
Medical Evaluation: Candidates who are selected by Colgate are asked to undergo a
medical test.
Evaluation of recruitment process
The following are the evaluation of the recruitment process:
1: Return rate of application sent out.
2: Number of suitable candidates for selection.
3: Retention and performance of the candidate selection.
4: Cost of recruitment
5: Time lapsed data.
6: Comments on image projected.

49

PHILSOPHIES OF RECRUITEMT
Basically there are two Philosophies of recruitment. These are as follows:
1: REALISTIC JOB PREVIEWS (RJP)
Realistic Job Previews provides complete job related information to the applicants so
that they can make the right decision before taking up the jobs. It includes positive
and the negative aspects of the job.

2: JOB COMPATIBILITY QUESTIONNAIRE: (JCQ)

Job compatibility Questionnaire was developed to determine whether an applicants
preference for the work match the characteristic of the job. The JCQ is designed to
collect information on all aspects of the job which have a bearing in on employee
performance .absenteeism, turnover and job satisfaction.

50

Human resource is an important corporate asset and the overall performance of

company depends on the way it is put to use. In order to realize company objectives, it
is essential to recruit people with requisite skills, qualification and experience. While
doing so we need to keep present and future requirements of company in mind.
Successful recruitment methods include a thorough analysis of the job and the labour
market conditions. Recruitment is almost central to any management process and
failure in recruitment can create difficulties for any company including an adverse
effect on its profitability and inappropriate levels of staffing or skills. Inadequate
recruitment can lead to labour shortages, or problems in management decision
making.
Recruitment is however not just a simple selection process but also requires
management decision making and extensive planning to employ the most suitable
manpower. Competition among business organisations for recruiting the best potential
has increased focus on innovation, and management decision making and the selectors
aim to recruit only the best candidates who would suit the corporate culture, ethics
and climate specific to the organisation.
The process of recruitment does not however end with application and selection of the
right people but involves maintaining and retaining the employees chosen. Despite a
well drawn plan on recruitment and selection and involvement of qualified
management team, recruitment processes followed by companies can face significant
obstacles in implementation. Theories of HRM may provide insights on the best
approaches to recruitment although companies will have to use their in house
management skills to apply generic theories within specific organizational contexts.
RECRUITMENT
Recruitment is defined as, a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an efficient
workforce. Edwin B. Flippo defined recruitment as the process of searching for
prospective employees and stimulating them to apply for jobs in the organization. In

51

simple words recruitment can be defined as a linking function-joining together those

with jobs to fill and those seeking jobs.
PURPOSE AND IMPORTANCE
The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically, the purposes and needs are:

Determine the present and future requirements of the organization in

conjunction with its personnel-planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number
of visibly, under qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected, will
leave the organization only after a short period of time.

Begin identifying and preparing potential job applicants who will be

appropriate candidates.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

Develop an organizational culture that attracts competent people to the

company.

Search for talent globally and not just within the company.

FACTORS AFFECTING RECRUITMENT

The following are the 2 important factors affecting Recruitment: 1)

INTERNAL FACTORS

Recruiting policy

Temporary and part-time employees

Recruitment of local citizens

Engagement of the company in HRP

Companys size

Cost of recruitment

52


2)

Companys growth and expansion

EXTERNAL FACTORS

Supply and Demand factors

Unemployment Rate

Labour-market conditions

Political and legal considerations

Social factors

Economic factors

Technological factors

THEORIES AND POLICIES OF RECRUITMENT AND SELECTION

Theories:
1. Objective theory
1) Assumes applicants use a very rational method for making decisions
2) Thus, the more information you can give them (e.g. salaries, benefits, working
condition, etc), the better applicants weight these factors to arrive at a relative
desirability index
2. Subjective theory
1) Assumes applicants are not rational, but respond to social or psychological needs
(e.g. security, achievement, affiliation)
2) Thus, play to these needs by highlighting job security or opportunities for
promotion or collegiality of work group, etc.
3. Critical Contact theory
1) Assumes key attractor is quality of contact with the recruiter or recruiter behavior,
e.g. (promptness, warmth, follow-up calls, sincerity, etc.)
2) Research indicates that more recruiter contact enhances acceptance of offer, also
experienced recruiter (e.g. middle-aged) more successful than young or

53

inexperienced recruiter - may be especially important when recruiting ethnic

minorities, women, etc.
Policies: Recruitment policy of any organization is derived from the personnel policy
of the same organization. However, recruitment policy by itself should take into
consideration the governments reservation policy, policy regarding sons of soil, etc.,
personnel policies of other organizations regarding merit, internal sources, social
responsibility in absorbing minority sections, women, etc.
Specific issues which may be addressed in Recruitment Policy:
1) Statement : Nondiscrimination (EEO employer) or particular protected class
members that may be sought for different positions (see also Affirmative Action
guidelines)
2) Position description: Adherence to job description (& qualifications) in
recruitment & selection -BFOQs -bonafide occupational qualifications
3) How to handle special personnel in recruitment/selection: e.g. relatives
(nepotism) veterans (any special advancement toward retirement for military
experience?), rehires (special consideration? vacation days or other prior
benefits?), part-time or temporary personnel (special consideration? benefits?)
4) Recruitment budget/expenses: what is covered? Travel, Lodging/meals, Staff
travel to recruit, relocation, expenses, etc.
5) Others:
a. Residency requirement in district?
b. Favors, special considerations related to recruitment? - e.g. get spouse a job?
INDUCEMENTS TO RECRUITMENT
Organisational inducements are all the positive features and benefits offered by an
organization that serves to attract job applicants to the organisation. Three
inducements need specific mention here, they are: Compensation: Starting salaries, frequency of pay increases, incentives and
fringe benefits can all serve as inducements to potential employees.
Career Opportunities: These help the present employees to grow personally
and professionally and also attract good people to the organization. The
feeling that the company takes care of employee career aspirations serves as a
powerful inducements to potential employees.

54

 Image or Reputation: Factors that affect an organisations reputation include

its general treatment of employees, the nature and quality of its products and
services and its participation in worthwhile social endeavors.

CONSTRAINTS
Poor image: If the image of the firm is perceived to be low( due to factors like
operation in the declining industry, poor quality products, nepotism etc), the
likelihood of attracting large number of qualified applicants is reduced.
Unattractive jobs: if the job to be filled is not very attractive, most prospective
candidates may turn indifferent and may not even apply.this is specialy true of
job that is boring, anxiety producing, devoid of career growth opportunities
and generally not reward performance in a proper way( eg jobs in post office
and railways).
Government policy: Government policies often come in the way of
recruitment as per the rules of company or on the basis of merit and seniority.
Policies like reservations (scheduled castes, scheduled tribe etc) have to be
observed.
Conservative internal policies: Firms which go for internal recruitments or
where labour unions are very active, face hindrances in recruitment and
selection planning.

55

RECRUITMENT- Relationship with other activities

56

CENTRALISED V/s DECENTRALISED RECRUITMENT

Recruitment practices vary from one organization to another. Some
organizations like commercial banks resort to centralized recruitment while some
organizations like the Indian Railway resort to decentralized recruitment practices.
Personnel department at the central office performs all the functions of recruitment in
case of centralised recruitment and personnel departments at unit level/zonal level
perform all the functions of recruitment concerning to the jobs of the respective unit
or zone.

SOURCES OF RECRUITMENT
The sources of recruitment may be broadly divided into two categories: internal
sources and external sources. Both have their own merits and demerits.
Internal Sources:Persons who are already working in an organization constitute the internal sources.
Retrenched employees, retired employees, dependents of deceased employees may
also constitute the internal sources. Whenever any vacancy arises, someone from
within the organization is upgraded, transferred, promoted or even demoted.
External Sources
External sources lie outside an organization. Here the organization can have the
services of: (a) Employees working in other organizations; (b) Jobs aspirants
registered with employment exchanges; (c) Students from reputed educational
institutions; (d) Candidates referred by unions, friends, relatives and existing
employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates
responding to the advertisements, issued by the organization; and (g) Unsolicited
applications/ walk-ins.

57

Merits and Demerits of Recruiting people from within

Merits

Demerits

1) Economical: The cost of recruiting

1)

Limited Choice: The organization is

internal candidates is minimal. No

forced to select candidates from a

expenses are incurred on advertising.

limited pool. It may have to sacrifice

quality and settle down for less

2) Suitable: The organization can pick the

qualified candidates.

right candidates having the requisite

skills. The candidate can choose a right

2)

Inbreeding: It discourages entry for

vacancy where their talents can be fully

talented people, available outside an

utilized.

organization. Existing employees may

fail to behave in innovative ways and

3) Reliable: The organization has the

knowledge about suitability of a

inject necessary dynamism to

candidate for a position. Known devils

enterprise activities.

are better than unknown angels!

3)

Inefficiency: Promotions based on

length of service rather than merit,

4) Satisfying: A policy of preferring

people from within offers regular

may prove to be a blessing for

promotional avenues for employees. It

inefficient candidate. They do not

motivates them to work hard and earn

work hard and prove their worth.

promotions. They will work with

4)

loyalty commitment and enthusiasm.

Bone of contention: Recruitment

from within may lead to infighting
among employees aspiring for limited,
higher level positions in an
organization. As years roll by, the race
for premium positions may end up in a
bitter race.

58

The merits and demerits of recruiting candidates from outside an organization may be
stated thus:
Merits and Demerits of External sources of Recruitment
Merits

Demerits

Wide Choice: The organization has the

Expenses: Hiring costs could go up

freedom to select candidates from a large

substantially. Tapping multifarious

pool. Persons with requisite qualifications sources of recruitment is not an easy task
could be picked up.

either.

Infection of fresh blood: People with

Time consuming: It takes time to

special skills and knowledge could be

advertise, screen, to test and test and to

hired to stir up the existing employees

select suitable employees. Where suitable

and pave the way for innovative ways of

ones are not available, the process has to

working.

be repeated.

Motivational force: It helps in

De-motivating: Existing employees who

motivating internal employees to work

have put in considerable service may

hard and compete with external

resist the process of filling up vacancies

candidates while seeking career growth.

from outside. The feeling that their

Such a competitive atmosphere would

services have not been recognized by the

help an employee to work to the best of

organization, forces then to work with

his abilities.

less enthusiasm and motivation.

Long term benefits: Talented people

Uncertainty: There is no guarantee that

could join the ranks, new ideas could find

the organization, ultimately will be able

meaningful expression, a competitive

to hire the services of suitable candidates.

atmosphere would compel people to give

It may end up hiring someone who does

out their best and earn rewards, etc.

not fit and who may not be able to adjust

in the new setup.

59

METHODS OF RECRUITMENT
Internal Methods:
1. Promotions and Transfers
This is a method of filling vacancies from internal resources of the company to
achieve optimum utilization of a staff member's skills and talents. Transfer is the
permanent lateral movement of an employee from one position to another position
in the same or another job class assigned to usually same salary range. Promotion,
on the other hand is the permanent movement of a staff member from a position in
one job class to a position in another job class of increased responsibility or
complexity of duties and in a higher salary range.
2. Job Posting
Job Posting is an arrangement in which a firm internally posts a list of open
positions (with their descriptions and requirements) so that the existing employees
who wish to move to different functional areas may apply. It is also known as Job
bidding. It helps the qualified employees working in the organization to scale new
heights, instead of looking for better perspectives outside. It also helps
organization to retain its experienced and promising employees.
3. Employee Referrals
It is a recruitment method in which the current employees are encouraged and
rewarded for introducing suitable recruits from among the people they know. The
logic behind employee referral is that it takes one to know one. Benefits of this
method are as follows:

Quality Candidates

Cost savings

Faster recruitment cycles

Incentives to current employees

On the other hand it is important for an organization to ensure that nepotism or

favoritism does not happen, and that such aspects do not make inroads into the
recruitment process.

60

External Methods:
External methods of recruitment are again divided into two categories- Direct
External Recruitment and Indirect External Recruitment methods.

Direct External Recruitment Methods

1. Campus Recruitment
In Campus Recruitment, Companies / Corporate visit some of the most important
Technical and Professional Institutes in an attempt to hire young intelligent and
smart students at source. It is common practice for Institutes today to hire a
Placement Officer who coordinates with small, medium and large sized
Companies and helps in streamlining the entire Campus Recruitment procedure.
Benefits of Campus Recruitment

Companies get the opportunity to choose from and select the best talent in
a short span of time.

Companies end up saving a lot of time and efforts that go in advertising

vacancies, screening and eventually selecting applicants for employment.

College students who are just passing out get the opportunity to present
themselves to some of the best companies within their industry of interest.
Landing a job offer while still in college and joining just after graduating
is definitely what all students dream of.

On the negative front, campus recruiting means hiring people with little or no
work experience.
Indirect External Recruitment Methods
1. Advertisements
Advertisements are the most common form of external recruitment. They can be
found in many places (local and national newspapers, notice boards, recruitment

61

fairs) and should include some important information relating to the job (job title,
pay package, location, job description, how to apply-either by CV or application
form, etc). Where a business chooses to advertise will depend on the cost of
advertising and the coverage needed i.e. how far away people will consider
applying for the job.
2. Third Party Methods

Walk-ins: Walk-ins is relatively inexpensive, and applicants may be filed and

processed whenever vacancies occur. Walk-ins provide an excellent public
relations opportunity because well-treated applicants are likely to inform others.
On the other hand, walk-ins show up randomly, and there may be no match with
available openings. This is particularly true for jobs requiring specialized skills.

Public and private employment agencies: Public and private employment

agencies are established to match job openings with listings of job applicants.
These agencies also classify and screen applicants. Most agencies administer
work-sample tests, such as typing exams, to applicants.

E-Recruiting: There are many methods used for e-recruitment, some of the
important methods are as follows:

a. Job boards: These are the places where the employers post jobs and search for
candidates. One of the disadvantages is, it is generic in nature.
b. Employer web sites: These sites can be of the company owned sites, or a site
developed by various employers.
c. Professional websites: These are for specific professions, skills and not general in
nature.

Gate Hiring and Contractors: The concept of gate hiring is to select people who
approach on their own for employment in the organization. This happens mostly
in the case of unskilled and semi-skilled workers. Gate hiring is quite useful and
convenient method at the initial stage of the organization when large number of
such people may be required by the organization

62

STEP 2: DEVELOP AN EFFECTIVE RECRUITMENT STRATEGY

EVALUATION OF SOURCES OF RECRUITMENT
Time-lapse data: They show the time lag between the dates of requisition for
manpower supply from a department to the actual date of filling the vacancies in that
department. For example, a company's past experience may indicate that the average
number of days from application to interview is 10, from interview to offer is 7, from
offer to acceptance is 10 and from acceptance to report for work is 15. Therefore, if
the company starts the recruitment and selection process now, it would require 42
days before the new employee joins its ranks. Armed with this information, the length
of the time needed for alternative sources of recruitment can be ascertained - before
pinning hopes on a particular source that meets the recruitment objectives of the
company.
Yield ratios: These ratios indicate the number of leads/ contacts needed to generate a
given number of hires at a point at time. For example, if a company needs 10
management trainees in the next six months, it has to monitor past yield ratios in order
to find out the number of candidates to be contacted for this purpose. On the basis of
past experience, to continue the same example, the company finds that to hire 10
trainees, it has to extend 20 offers. If the interview-to-offer ratio is 3:2, then 30
interviews must be conducted. If the invitees to interview ratio is 4:3 then, as many as
40 candidates must be invited. Lastly, if contacts or leads needed to identify suitable
trainees to invite are in 5:1 ratio, then 200 contacts are made.
Surveys and studies: Surveys may also be conducted to find out the suitability of a
particular source for certain positions. For example', as pointed out previously,
employee referral has emerged as a popular way of hiring people in the Information
Technology industry in recent times in India. Correlation studies could also be carried
out to find out the relationship between different sources of recruitment and factors of
success on the job. In addition to these, data on employee turnover, grievances, and
disciplinary action would also throw light on the relative strengths of a particular
source of recruitment for different organizational positions. Before finally identifying
the sources of recruitment, the human resource managers must also look into the cost

63

or hiring a candidate. The cost per hire can be found out by dividing the recruitment
cost by the number of candidates hired.
SELECTION
Introduction
The size of the labour market, the image of the company, the place of posting,
the nature of job, the compensation package and a host of other factors influence the
manner of aspirants are likely to respond to the recruiting efforts of the company.
Through the process of recruitment the company tries to locate prospective employees
and encourages them to apply for vacancies at various levels. Recruiting, thus,
provides a pool of applicants for selection.
Definition
To select means to choose. Selection is the process of picking individuals who
have relevant qualifications to fill jobs in an organisation. The basic purpose is to
choose the individual who can most successfully perform the job from the pool of
qualified candidates.
Purpose
The purpose of selection is to pick up the most suitable candidate who would
meet the requirements of the job in an organisation best, to find out which job
applicant will be successful, if hired. To meet this goal, the company obtains and
assesses information about the applicants in terms of age, qualifications, skills,
experience, etc. the needs of the job are matched with the profile of candidates. The
most suitable person is then picked up after eliminating the unsuitable applicants
through successive stages of selection process. How well an employee is matched to a
job is very important because it is directly affects the amount and quality of
employees work. Any mismatch in this regard can cost an organisation a great deal of
money, time and trouble, especially, in terms of training and operating costs. In course
of time, the employee may find the job distasteful and leave in frustration. He may
even circulate negative information about the company, causing incalculable harm to
the company in the long run. Effective election, therefore, demands constant
monitoring of the fit between people the job.

64

The Selection Process

Selection is usually a series of hurdles or steps. Each one must be successfully
cleared before the applicant proceeds to the next one. The time and emphasis place on
each step will definitely vary from one organisation to another and indeed, from job to
job within the same organisation. The sequence of steps may also vary from job to job
and organisation to organisation. For example some organisations may give more
importance to testing while others give more emphasis to interviews and reference
checks. Similarly a single brief selection interview might be enough for applicants for
lower level positions, while applicants for managerial jobs might be interviewed by a
number of people.
1. Reception
A company is known by the people it employs. In order to attract people with talents,
skills and experience a company has to create a favourable impression on the
applicants right from the stage of reception. Whoever meets the applicant initially
should be tactful and able to extend help in a friendly and courteous way.
Employment possibilities must be presented honestly and clearly. If no jobs are
available at that point of time, the applicant may be asked to call back the personnel
department after some time.
2. Screening Interview
A preliminary interview is generally planned by large organisations to cut the
cost of selection by allowing only eligible candidates to go through the further stages
in selection. A junior executive from the Personnel Department may elicit responses
from the applicants on important items determining the suitability of an applicant for
a job such as age, education, experience, pay expectations, aptitude, location, choice
etc. this courtesy interview as it is often called helps the department screen out
obvious misfits. If the department finds the candidate suitable, a prescribed
application form is given to the applicants to fill and submit.
3.Application Blank
65

Application blank or form is one of the most common methods used to collect
information on the various aspects of the applicants academic, social, demographic,
work related background and references. It is a brief history sheet of employees
background.
Usefulness of Application Blank or Form
Application blank is highly useful selection tool, in that way it serves three
important purposes:
1. It introduces the candidate to the company in a formal way.
2. It helps the company to have a cross-comparison of the applicants; the
company can screen and reject candidates if they fail to meet the eligibility
criteria at this stage itself.
3. It can serve as a basis to initiate a dialogue in the interview.
4.Selection Testing
Selection tests or the employment tests are conducted to assess intelligence, abilities,
and personality trait.
A test is a standardized, objective measure of a persons behaviour, performance or
attitude. It is standardised because the way the tests is carried out, the environment in
which the test is administered and the way the individual scores are calculated- are
uniformly applied. It is objective in that it tries to measure individual differences in a
scientific way giving very little room for individual bias and interpretation. Some of
them are
1. Intelligence Tests: These are mental ability tests. They measure the incumbents
learning ability and the ability to understand instructions and make judgements.
The basic objective of such test is to pick up employees who are alert and quick at
learning things so that they can be offered adequate training to improve their skills
for the benefit of the organization.
2. Aptitude Test: Aptitude test measure an individuals potential to learn certain
skills- clerical, mechanical, mathematical, etc. These tests indicate whether or not
an individual has the capabilities to learn a given job quickly and efficiently. In
order to recruit efficient office staff, aptitude tests are necessary

66

3. Personality Test: The definition of personality, methods of measuring personality

factors and the relationship between personality factors and actual job criteria has
been the subject of much discussion. Researchers have also questioned whether
applicants answer all the items truthfully or whether they try to respond in a
socially desirable manner. Regardless of these objections, many people still
consider personality as an important component of job success.
4. Simulation Tests: Simulation exercise is a tests which duplicate many of the
activities and problems an employee faces while at work.
5. Graphology Test: Graphology involves using a trained evaluator to examine the
lines, loops, hooks, stokes, curves and flourishes in a persons handwriting to
assess the persons personality and emotional make-up.
6. Polygraph (Lie-Detector) tests: the polygraph records physical changes in the
body as the tests subject answers a series of questions. It records fluctuations in
respiration, blood pressure and perspiration on a moving roll of graph paper. The
polygraph operator forms a judgement as to whether the subjects response was
truthful or deceptive by examining the biological movements recorded on the
paper.

TEST AS SELECTION TOOL:

Tests are useful selection devices in that they uncover qualifications and
talents that cant be detected otherwise. They can be used to predict how well one
would perform if one is hired, why one behaves the way one does, what situational
factors influence employee productivity, etc. Tests also provide unbiased information
that can be put to scientific and statistical analysis.
However, tests suffer from sizeable errors of estimate. Most psychological
tests also have one common weakness, that is, we cant use scales which have a
known zero point and equal intervals. An intelligence test, for example starts at an
arbitrary point, where a person may not be able to answer question properly. This does
not mean that the person is totally lacking in intelligence. Likewise, a person who is
able to answer all the 10 questions correctly cannot be called twice as intelligent as
the one who was able to answer only 5.

67

SELECTION INTERVIEW: Interview is the oral examination of candidates for

employment. This is the most essential step in the selection process. In this step the
interviewer matches the information obtained about the candidates through various
means to the job requirements and to the information obtained through his own
observations during the interview. Interview gives the recruiter an opportunity
To size up the candidate personally;
To ask question that are not covered in the tests;
To make judgments on candidates enthusiasm and intelligence;
To assess subjective aspects of the candidate facial expressions, appearance,
nervousness and so forth;
To give facts to the candidates regarding the company, its policies, etc. and
promote goodwill towards the company.

Types of interviews:
Several types of interviews are commonly used depending on the nature and
importance of the position to be filled within an organization.
In a non directive interview the recruiter asks questions as they come to mind. There
is no specific format to be followed.
In a patterned interview, the employer follows a pre-determined sequence of
questions. Here the interviewee is given a special form containing questions regarding
his technical competence, personality traits, attitudes, motivation, etc.
In a structured or situational interview, there are fixed job related questions that are
presented to each applicant.
In a panel interview several interviewers question and seek answers from one
applicant. The panel members can ask new and incisive questions based on their
expertise and experience and elicit deeper and more meaningful expertise from
candidates.
Interviews can also be designed to create a difficult environment where the applicants
confidence level and the ability to stand erect in difficult situations are put to test.

68

These are referred to as the stress interview. This is basically an interview in which
the applicant is made uncomfortable by a series of, often, rude, annoying or
embarrassing questions.
Steps in interview process:
Interview is an art. It demands a positive frame of mind on part of the interviewers.
Interviewers must be treated properly so as to leave a good impression about the
company in their minds. HR experts have identified certain steps to be followed while
conducting interviews:
PREPARATION:

Establishing the objective of the interview

Receiving the candidates application and resume
Keeping tests score ready, along with interview assessment forms
Selecting the interview method to be followed
Choosing the panel of experts who would interview the candidates
Identifying proper room for environment

1.RECEPTION: The candidate should be properly received and led into the
interview room. Start the interview on time.
2.INFORMATION EXCHANGE:

State the purpose of the interview, how the qualifications are going to be

matched with skills needed to handle the job.

Begin with open-ended questions where the candidate gets enough freedom to

express himself.
Focus on the applicants education, training, work experience, etc. Find
unexplained gaps in applicants past work or college record and elicit facts that
are not mentioned in the resume.

3.EVALUATION: Evaluation is done on basis of answers and justification given by

the applicant in the interview.
4. PHYSICAL AND MEDICAL EXAMINATION: After the selection decision and
before the job offer is made, the candidate is required to undergo a physical fitness
test. A job offer is often contingent upon the candidate being declared fit after the
physical examination.
69

5.REFERENCE CHECKS: Once the interview and medical examination of the

candidate is over, the personnel department will engage in checking references.
Candidates are required to give the names of 2 or 3 references in their application
forms. These references may be from the individuals who are familiar with the
candidates academic achievements or from the applicants previous employer, who is
well versed with the applicants job performance and sometimes from the co-workers.
HIRING DECISION:
The line manager has to make the final decision now whether to select or reject a
candidate after soliciting the required information through different techniques
discussed earlier. The line manager has to take adequate care in taking the final
decision because of economic, behavioral and social implications of the selection
decisions. A careless decision of rejecting a candidate would impair the morale of the
people and they suspect the selection procedure and the very basis of selection in a
particular organization. A true understanding between line managers and personnel
managers should be established so as to facilitate good selection decisions. After
taking the final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization sends the appointment
order to the successful candidates either immediately or after sometime depending
upon its time schedule.
Interviewing Mistakes:

May have been influenced by cultural noise, snap

judgments, halo effect, stereotyping, first impression etc.

70

STRATEGIES FOR SUCESSFUL RECRUITMENT

STEP 1: ENSURE AN UP-TO-DATE JOB DESCRIPTION

A clear, accurate and up-to-date job description is crucial to ensuring a good personjob fit. It is worthwhile spending some time making sure that the job description
matches the everyday reality of the job.
STEP 2: EVALUATE THE RECRUITMENT STRATEGY
Periodically evaluating the effectiveness of your recruitment strategy, such as the type
of sources used for recruiting, can be a useful activity. For instance, a cost-benefit
analysis can be done in terms of the number of applicants referred, interviewed,
selected, and hired. Comparing the effectiveness of applicants hired from various
sources in terms of job performance and absenteeism is also helpful. One could also
examine the retention rates of workers who were hired from different sources.

71

CHAPTER-4
DATA ANALYSIS

72

DATA ANALYSIS AND INTERPRETATION

Q1)

In your organization the manpower requirement is identified well in advance?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

15%

Moderately agree (4)

14

70%

Strongly disagree (3)

Moderately disagree (2)

15%

Cant say (1)

SCORE: 3.85

SAMPLE SIZE: 20

INTERPRETATION
1.

15% of the employees are strongly agreed that in our organization the
manpower requirement is identified well in advance.

2.

70% of the employees are moderately agreed that in our organization the
manpower requirement is identified well in advance.

3.

15% of the employees are moderately disagreed that in our organization the
manpower requirement is identified well in advance.
Q2)

Is there any well defined recruitment policy?

73

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

45%

Moderately agree (4)

10

50%

Strongly disagree (3)

5%

Moderately disagree (2)

Cant say (1)

SCORE: 4.4

SAMPLE SIZE: 20

INTERPRETATION
1.

45% of the employees are strongly agreed that there is well defined
recruitment policy.

2.

50% of the employees are moderately agreed that there is well defined
recruitment policy.

3.

5% of the employees are strongly disagreed that there is well defined

recruitment policy.

74

Q3)

Do you think the need for manpower planning is given due consideration?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

30%

Moderately agree (4)

10

50%

Strongly disagree (3)

Moderately disagree (2)

15%

Cant say (1)

5%

SCORE: 3.85

SAMPLE SIZE: 20

INTERPRETATION
1.

30% of the employees are strongly agreed that manpower planning is given
due consideration.

2.

50% of the employees are moderately agreed that manpower planning is given
due consideration.

3.

15% of the employees are moderately disagreed that manpower planning is

given due consideration.

4.

5% of the employees cant say that manpower planning is given due

consideration.
Q4)

Do you think present selection process is feasible for selecting the employees?

75

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

10%

Moderately agree (4)

16

80%

Strongly disagree (3)

Moderately disagree (2)

10%

Cant say (1)

SCORE: 3.9

SAMPLE SIZE: 20

INTERPRETATION
1.

10% of the employees are strongly agreed that present selection process is
feasible for selecting the employees.

2.

80% of the employees are moderately agreed that present selection process is
feasible for selecting the employees.

3.

10% of the employees are moderately disagreed that present selection process
is feasible for selecting the employees.

Q5)

Are the views of the concerned department head are given special attention
while selecting the employees of the department?

76

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Yes

12

60%

No

40%

SAMPLE SIZE: 20
INTERPRETATION
1.

60% of the employees said that views of the concerned department head are
given special attention while selecting the employees of the department.

2.

40% of the employees said that views of the concerned department head are
not given special attention while selecting the employees of the department.

77

Q6)

Are external sources are relied upon when requirement arises?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Yes

12

60%

No

40%

SAMPLE SIZE: 20
INTERPRETATION
1.

60% of the employees said that external sources are relied upon when
requirement arises.

2.

40% of the employees said that external sources are not relied upon when
requirement arises.

Q7)

To identify the employees capability and aptitude psychological testing is

used. Do you think it is useful to use this technique?

78

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

35%

Moderately agree (4)

10

50%

Strongly disagree (3)

Moderately disagree (2)

15%

Cant say (1)

SCORE: 4.05

SAMPLE SIZE: 20

INTERPRETATION
1.

35% of the employees are strongly agreed that it is useful to identify the
employees capability and aptitude psychological testing.

2.

50% of the employees are moderately agreed that it is useful to identify the
employees capability and aptitude psychological testing.

3.

15% of the employees are moderately disagreed that it is useful to identify the
employees capability and aptitude psychological testing.

79

Q8)

Is there any participation by the line manager in planning and recruitment?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

5%

Moderately agree (4)

45%

Strongly disagree (3)

15%

Moderately disagree (2)

20%

Cant say (1)

15%

SCORE: 3.05

SAMPLE SIZE: 20

INTERPRETATION
1.

5% of the employees are strongly agreed that there is participation by the line
manager in planning and recruitment.

2.

45% of the employees are moderately agreed that there is participation by the
line manager in planning and recruitment.

3.

15% of the employees are strongly disagreed that there is participation by the
line manager in planning and recruitment.

4.

20% of the employees are moderately disagreed that there is participation by

the line manager in planning and recruitment.

5.

15% of the employees cant say that there is participation by the line manager
in planning and recruitment.
Q9)

Is principal of right man for the right job is strictly followed?

80

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

20%

Moderately agree (4)

12

60%

Strongly disagree (3)

5%

Moderately disagree (2)

10%

Cant say (1)

5%

SCORE: 3.8

SAMPLE SIZE: 20

INTERPRETATION
1.

20% of the employees are strongly agreed that principal of right man for the
right job is strictly followed.

2.

60% of the employees are moderately agreed that principal of right man for
the right job is strictly followed.

3.

5% of the employees are strongly disagreed that principal of right man for the
right job is strictly followed.

4.

10% of the employees are moderately disagreed that principal of right man for
the right job is strictly followed.

5.

5% of the employees cant say that principal of right man for the right job is
strictly followed.
Q10) Which internal or external source of recruitment is followed by the company?

81

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Employment exchange

Campus interview

30%

Advertisement

10

50%

Promotion

10%

Training

10%

SAMPLE SIZE: 20
INTERPRETATION
1.

30% of the employees said that recruitment is made through campus interview.

2.

50% of the employees said that recruitment is made through advertisement.

3.

10% of the employees said that recruitment is made through promotion.

4.

10% of the employees said that recruitment is made through training.

82

Q11) Recruitment is made according to .

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Immediate need

11

55%

Yearly wise

10%

Both

25%

Any other

10%

SAMPLE SIZE: 20
INTERPRETATION
1.

55% of the employees said that recruitment is made according to immediate

need.

2.

10% of the employees said that recruitment is made according to Yearly wise
need.

3.

25% of the employees said that recruitment is made according to both the
needs.

4.

10% of the employees said that recruitment is made according to any other
need.

83

Q12) Is any traveling allowance given for outstation candidates who are called for
interview?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Yes

10

50%

No

10

50%

SAMPLE SIZE: 20
INTERPRETATION
1.

60% of the employees said that traveling allowance is given for outstation
candidates who are called for interview.

2.

40% of the employees said that traveling allowance is not given for outstation
candidates who are called for interview.

84

85

Q13) Is the employee aware of the positive and negative effects of the job?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

35%

Moderately agree (4)

11

55%

Strongly disagree (3)

10%

Moderately disagree (2)

Cant say (1)

SCORE: 4.25

SAMPLE SIZE: 20

INTERPRETATION
1.

35% of the employees are strongly agreed that the employee aware of the
positive and negative effects of the job.

2.

55% of the employees are moderately agreed that the employee aware of the
positive and negative effects of the job.

3.

10% of the employees are strongly disagreed that the employee aware of the
positive and negative effects of the job.

86

Q14) Do you think succession planning is done in advance?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

10%

Moderately agree (4)

12

60%

Strongly disagree (3)

10%

Moderately disagree (2)

5%

Cant say (1)

15%

SCORE: 3.45

SAMPLE SIZE: 20

INTERPRETATION
1.

10% of the employees are strongly agreed that succession planning is done in
advance.

2.

60% of the employees are moderately agreed that succession planning is done
in advance.

3.

10% of the employees are strongly disagreed that succession planning is done
in advance.

4.

5% of the employees are moderately disagreed that succession planning is

done in advance.

5.

15% of the employees cant say that succession planning is done in advance.

87

Q15) Is induction programme is conducted immediately after the recruitment?

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Strongly agree (5)

12

60%

Moderately agree (4)

35%

Strongly disagree (3)

5%

Moderately disagree (2)

Cant say (1)

SCORE: 4.55

SAMPLE SIZE: 20

INTERPRETATION
1.

60% of the employees are strongly agreed that Induction programme is

conducted immediately after the recruitment.

2.

35% of the employees are moderately agreed that Induction programme is

conducted immediately after the recruitment.

3.

5% of the employees are strongly disagreed that Induction programme is

conducted immediately after the recruitment.

88

89

FINDINGSFINDINGS
The company has weak organizational climate
The organization has clearly defined responsibilities to all its employees
There is a negative effect found of the organizational policies. This might appear to
be contradictory to the general management practice. But this might be interpreted
as indicating as various new initiatives are being taken and new policies made, this
is taking its toll on the affected people or work areas. This may also mean that the
staff is not fully identifying with these changes.
The employees are very much satisfied with the work environment provided to the
employees.
The organization was capable of providing work-life balance to its employees.

90

RECOMMENDATIONS

91

RECOMMENDATIONS:

Management can improve the satisfaction of workers by ensuring impartiality

and fairness in the disciplinary action proceedings

It should also share information in more open way with staff and reach out to
the staff members by making the communication channels more effective.

Encouragement by superior and superiors owning up the development of

subordinates.

The management should focus on imparting training to develop leadership

skills among the employees.

The management should benchmark the pay and benefits with the competitive
industries.

Wants to make an immediate impact on the staff satisfaction, it has to ensure:

Retaining talented people

Communication by the management needs to reach out to the staff at all levels.

92

93

CONCLUSIONCONCLUSION
Human Resource in a company has a lot of variables that are dependent on it. These
variables either directly or indirectly have an effect on the overall performance of the
organization.
Since it is an important function the employees need to have a good knowledge as to
how they are being apprised. From this study we are able to understand that the
employees of AXIS BANK have a positive feeling about the system that is being
followed this shows that the performance appraisal techniques (Important Function)
undertaken in AXIS BANK are of international standards.

94

QUESTIONNAIRE

Name...
Designation.
Department
Marital Status.
Q1)

In your organization the manpower is identified well in advance?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q2)

Is there any well defined recruitment policy?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q3)

Do you think the need for manpower planning is given due consideration?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

95

Q4)

Do you think present selection process is feasible for selecting the

employees?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q5)

Are the views of the concerned department head are given special
attention while selecting the employee of the department?

a)

Yes

b)

No

Q6)

Are external sources are relied upon when requirement arises?

a)

Yes

b)

No

Q7)

To identify the employees capability and aptitude psychological testing is

used. Do you think it is useful to use this technique?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

96

Q8)

Is there any participation by the line manager in planning and

recruitment?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q9)

Is principal of right man for the right job is strictly followed?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q10) Which internal or external source of recruitment is followed by the

company?
a)

Employment exchange

b)

Campus interview

c)

Advertisement

d)

Promotion

e)

Training

Q11) Recruitment is made according to.

a)

Immediate need

b)

Yearly wise

c)

Both

d)

Any other

97

Q12) Is any traveling allowance given for outstation candidates who are called
for interview?
a)

Yes

b)

No

Q13) Is the employee aware of the positive and negative effects of the job?
a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q14) Do you think succession planning is done in advance?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

Q15) Is induction programme is conducted immediately after the recruitment?

a)

Strongly agree

b)

Moderately agree

c)

Strongly disagree

d)

Moderately disagree

e)

Cant say

98

BIBLIOGRAPHY

Books:
H. John Bernardin Human Resource Management, Fourth Edition, Mc
Graw Hill,2000.
Angelo S Denisi , Human Resource Management ,Second Edition,
Biztantra, 2005.
GaryDessler, Human Resource Management Tenth Edition, Pearson
Education, 2007,pg. no.423-530.
C.R. Kothari, Research Methodology Methods and Techniques, Second
Edition, New Age International Publishers, 2004.
Information from Company Policy Manual
Abhishek Agarwal - EzineArticles.com Expert Author
Recruitment and Selection by Duncan BrodieAuthor.

Websites:

www.axisbank.com

www.citrhr.com

www.agi-glaspac.com

www.management.org

http://www.ssa.vic.gov.au

99

EzineArticles.com Expert