Final Draft

CHAPTER I
1. INTRODUCTION
1.1 INTRODUCTION TO THE STUDY

Recruitment refers to the process of sourcing, screening and selecting people for a job or
vacancy with in an organization. Though individual can undertake individual components of
the recruitment process, mid and large size organization generally retain professional
recruiters.
The Recruitment must produce hires with an objective to retain people for a reasonable length
of time. As an additional goal of the recruiting efforts, the organization’s general image
should be enhanced to the extent that even unsuccessful applicants develop positive attitudes
towards the company. Recruiting should be accomplished with the greatest speed and at the
least possible cost to the organization.
A general recruitment process involves Identifying vacancies, prepare job description and
person specification, advertising, managing the response, short-listing, arranging interviews,
conducting interviews, decision making, convey the decision and appointment action. This
means that a lot of time and resources have to be invested.
Recruitment is the process whereby a firm attracts or finds capable individuals to apply for
employment. Of course, the objective is to find these applicants at the lowest possible cost.
This process begins when new recruits are sought, and ends when applicants have submitted
application forms or resumes. The result is a pool of job-seekers from which the firms can
then the select the most qualified.
Smart companies recruit employees they can retain, and retention depends on getting the right
people in the right job in the first place. So, while getting large pool applicants is important,
getting the right type of applicant is even more important.
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Objective:
 To attract potential employees into the rolls of the company
 To make a positive impact with our clients, thereby increase the goodwill and equity
for the Company, leading to better market standing.
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Subject Background of the Research:
The recruitment, screening and selection process is vitally important to any organization
desirous of attracting and appointing qualified personnel. In order for the process to meet
desired goals, it must be valid and measurable with minimum adverse impact.
Recruitment is of different types viz,

There are several sources of Recruitment and they may be broadly categorized in to (i)
internal and (ii) external.
(i) Internal Recruitment
Internal recruitment seeks applicants for positions from those who are currently employed.
Internal sources include present employees, employee referrals, former employees, and
former applicants.
 Present employees
Promotions and transfers from among the present employees can be a good source of
recruitment. Promotion to higher positions has several advantages. They are (i) it is
good public relations; (ii) it builds morale; (iii) it encourages competent individuals
who are ambitious; (iv) it improves the probability of a good selection, since
information on the individual’s performance is readily available; (v) it is cheaper than
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going outside to recruit; (vi) those chosen internally are familiar with the
organization; and (vii) when carefully planned, promoting from within can also act as
a training device for developing middle-level and top-level managers.
 Employee Referrals
This can be a good source of internal recruitment. Employees can develop good
prospects for their families and friends by acquainting them with the advantages of a
job with the company, furnishing cards of introduction, and even encouraging them to
apply.
 Former Employees
Former employees are also in internal source of applicants. Some retired employees
may be willing to come back to work on a part time basis or may recommend
someone who would be interested in working for the company. Sometimes people
who have left the company for some reason or the other are willing to come back and
work. Individuals who left for other jobs, might willing to come back for higher
emoluments. An advantage with this source is that the performance of these people is
already known.
 Previous Applicants
Although not truly an internal source, those who have previously applied for jobs can
be contacted by mail, a quick and inexpensive way to fill an unexpected opening.
Although walk-ins are likely to be more suitable for filling unskilled and semi-skilled
jobs, some professional openings can be filled by applicants to previous jobs.
(ii) External Recruitment

External sources far outnumber the internal methods. Specifically sources external to an
organization are professional or trade associations, advertisements, employment exchanges,
college/university/institute placement services, walk-ins and write-ins, consultants,
contractors, displaced persons, radio and television, acquisitions and mergers, and
competitors.
 Professional or Trade Associations
Many associations provide placement services for their members. These services may
consist of compiling job seekers lists and providing access to members during
regional or national conventions.
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 Advertisements
These constitute popular method of seeking recruits as many recruiters prefer
advertisements because of their wide reach.
Want ads describe the job and the benefits, identify the employer, and tell those are
interested and how to apply. They are the most familiar form of employment
advertising. For highly specialized recruits, advertisements may be placed in
professional/business journals. Newspaper is the most common media.
 Employment Exchanges
Employment exchanges have been set up all over the country in deference to the
provisions of the Employment Exchanges Act, 1959.the Act applies to all industrial
establishments having 25 workers or more each.
 Campus Recruitment
Colleges, universities, research laboratories, sports fields and institutes are fertile
ground for recruiters, particularly the institutes.
The campus recruitment is so much sought after by the recruiters that each college,
university department or institute will have to have a placement officer to handle
recruitment functions.
 Walk-ins, Write-ins and Talk-ins
The most common and least expensive approach for candidates is direct applications,
in which job seekers submit unsolicited application letters or resumes. Direct
applications can also provide a pool of potential employees to meet future needs.
 Consultants
Consultants are useful inasmuch as they have nation wide contacts and lend
professionalism to the hiring process. They also keep prospective employer and the
employee anonymous. But the cost can be a deterrent factor. Most consultants charge
fees ranging from 20 to 50 percent of the first year salaries of the individuals placed.
 Contractors
Contractors are used to recruit casual workers. The names of the workers are not
entered in the company records and, to this extent, difficulties experienced in
maintaining permanent workers are avoided.
 Displaced persons
Sitting and implementation a project in an area would result in displacement of
several hundred inhabitants. Rehabilitating the displaced people is a social
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responsibility of business. Such people are a sources of recruitment, not only for the
project which caused the displacement, but also for other companies located
elsewhere.
 Radio and Television
Radio and Television are used but sparingly, and that too, government departments
only. Companies in the private sector are hesitant to use the media because of high
costs and also because they fear that such advertising will make the companies look
desperate and damage their conservative image.
 Acquisitions and Mergers
Another method of staffing organizations is a result of the merger or acquisition
process. When organizations combine into one, they have to handle a large pool of
employees, some of whom may no longer be necessary in the new organization.
Consequently the new organization has, in effect, a pool of qualified job applicants.
As a result of the merger or acquisition, however, new jobs may be created as well.
Both new and old jobs may be readily staffed by drawing the best qualified applicants
from this employee pool.
 Competitors
Rival firms can be a source of recruitment. Popularly called poaching or raiding, this
method involves identifying the right people in rival companies, offering them better
terms and luring them away.
 Internet Recruiting
Finding well-qualified applicants quickly at the lowest possible cost is a primary goal
for recruiters. Recent trends indicate that, if you're looking for a job in the technical
field or to fill a technical job, you need consider using the Internet. The same may
well be true for non-technical jobs in the near future.
Advantages of internal recruiting:
 Recruiting costs: Since the recruiting machinery is focused on an already existing
pool of employees to fill a vacant position, and therefore selection and socializing
processes are less time and dollar consuming, internal recruiting tends to be less
expensive than external recruiting.
 Motivation: The prospect of potential promotion or transfers provides a clear sign to
the current work force that the organization offers room for advancement. This
addresses the employee's need for self-achievement.
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 Familiarity: The familiarity of the employee has a two-side effect: On the one hand
the employee is familiar with the organization's policies, procedures, and customs. At
the same time, the organization has established an employment history showing the
workers formal and informal skills and abilities.
Disadvantages of internal recruiting
 Inbreeding: One drawback of extensive internal recruiting is the reduced likelihood
of innovation and new perspectives. A lack of new employees from the outsides leads
to a lack of new ideas and approaches.
 EEO Criteria: A use of the internal pool for the consideration of vacant positions
can lead to conflicts with the Equal Employment Opportunity Commission. The
organization has to ensure and continuously check its balance of a diverse workforce.
This has to relate to the organization’s legal, political and geographical environment.
 More training: Internal recruiting demands a higher degree of employee training. In
order to develop the skills needed to train the current workforce in new processes and
technologies, the organization has to provide a more expensive training program.
Recruitment Strategies
Recruitment is of the most crucial roles of the human resource professionals. The level of
performance of and organization depends on the effectiveness of its recruitment function.
Organizations have developed and follow recruitment strategies to hire the best talent for
their organization and to utilize their resources optimally. A successful recruitment strategy
should be well planned and practical to attract more and good talent to apply in the
organization. For formulating an effective and successful recruitment strategy, the strategy
should cover the following elements:
Identifying and prioritizing jobs:
1. Requirements keep arising at various levels in every organization; it is almost a never-
ending process. It is impossible to fill all the positions immediately. Therefore, there is a need
to identify the positions requiring immediate attention and action. To maintain the quality of
the recruitment activities, it is useful to prioritize the vacancies whether to focus on all
vacancies equally or focusing on key jobs first.
2. Candidates to target:
The recruitment process can be effective only if the organization completely understands the
requirements of the type of candidates that are required and will be beneficial for the
organization. This covers the following parameters as well:
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 Performance level required: Different strategies are required for focusing on hiring
high performers and average performers.
 Experience level required: the strategy should be clear as to what is the experience
level required by the organization. The candidate’s experience can range from being a
fresher to experienced senior professionals.
 Category of the candidate: the strategy should clearly define the target candidate.
He/she can be from the same industry, different industry, unemployed, top performers
of the industry etc.
3 Sources of recruitment:
The strategy should define various sources (external and internal) of recruitment. Which
are the sources to be used and focused for the recruitment purposes for various positions?
Employee referral is one of the most effective sources of recruitment.
4 Trained recruiters:
The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They should
also be aware of the major parameters and skills (e.g.: behavioral, technical etc.) to focus
while interviewing and selecting a candidate.
5 How to evaluate the candidates:
The various parameters and the ways to judge them i.e. the entire recruitment process
should be planned in advance. Like the rounds of technical interviews, HR interviews,
written tests, psychometric tests etc.
Employee Retention
Employee Retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time. Corporate is facing a lot of problems in
employee retention these days. Hiring knowledgeable people for the job is essential for an
employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for such
employees. If a person is not satisfied by the job he’s doing, he may switch over to some
other more suitable job.
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In today’s environment it becomes very important for organizations to retain their employees.
The top organizations are on the top because they value their employees and they know how
to keep them glued to the organization. Employees stay and leave organizations for some
reasons. The reason may be personal or professional. These reasons should be understood by
the employer and should be taken care of. The organizations are becoming aware of these
reasons and adopting many strategies for employee retention
Forms of Recruitment
The organizations differ in terms of their size, business, processes and practices. A few
decisions by the recruitment professionals can affect the productivity and efficiency of the
organization. Organizations adopt different forms of recruitment practices according to the
specific needs of the organization. The organizations can choose from the centralized or
decentralized forms of recruitment, explained below:
Centralized Recruitment
The recruitment practices of an organization are centralized when the HR / recruitment
department at the head office performs all functions of recruitment. Recruitment decisions for
all the business verticals and departments of an organization are carried out by the one central
HR (or recruitment) department. Centralized from of recruitment is commonly seen in
government organizations.
Benefits of the centralized form of recruitment are:
 Reduces administration costs
 Better utilization of specialists
 Uniformity in recruitment
 Interchangeability of staff
 Reduces favoritism
 Every department sends requisitions for recruitment to their central office
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Decentralized Recruitment
Decentralized recruitment practices are most commonly seen in the case of conglomerates
operating in different and diverse business areas. With diverse and geographically spread
business areas and offices, it becomes important to understand the needs of each department
and frame the recruitment policies and procedures accordingly. Each department carries out
its own recruitment. Choice between the two will depend upon management philosophy and
needs of particular organization. In some cases combination of both is used. Lower level
staffs as well as top level executives are recruited in a decentralized manner
In June 2005, U.S. Secretary of Labor Elaine L. Chaos announced a series of investments
totaling more than $2 million to address the workforce needs of the hospitality industry.
These investments result from forums which the U.S. Department of Labor hosted over the
past year with industry leaders, educators, and the public workforce system to identify the
industry’s hiring, training, and retention challenges.
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CHAPTER II
INDUSTRY PROFILE
INTRODUCTION TO BANKING SECTOR
A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also non- banking
institutions that provide certain banking services without meeting the legal Banks are a
subset of the financial services industry. A banking system also referred as a system provided
by the bank which offers cash management services for customers, reporting the transactions
of their accounts and portfolios, throughout the day. The banking system in India, should not
only be hassle free but it should be able to meet the new challenges posed by the technology
and any other external and internal factors. For the past three decades, India’s banking system
has several outstanding achievements to its credit. The Banks are the main participants of the
financial system in India.
Before the establishment of banks, the financial activities were handled by money lenders
and individuals. At that time the interest rates were very high. Again there were no security of
public savings and no uniformity regarding loans. So as to overcome such problems the
organized banking sector was established, which was fully regulated by the government. The
organized banking sector works within the financial system to provide loans, accept deposits
and provide other services to their customers.
The Banking sector offers several facilities and opportunities to their customers. All the
banks safeguards the money and valuables and provide loans, credit, and payment services,
such as checking accounts, money orders, and cashier’s cheques. The banks also offer
investment and insurance products. As a variety of models for cooperation and integration
among finance industries have emerged, some of the traditional distinctions between banks,
insurance companies, and securities firms have diminished. In spite of these changes, banks
continue to maintain and perform their primary role—accepting deposits and lending funds
from these deposits.
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HISTORY OF INDIAN BANKING SECTOR
The first bank in India, called The General Bank of India was established in the year 1786.
The East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay
(1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was
established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and
Bank of Madras) were called as Presidency Banks. Allahabad Bank which was established in
1865, was for the first time completely run by Indians. Punjab National Bank Ltd. was set up
in 1894 with head quarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921,
all presidency banks were amalgamated to form the Imperial Bank of India which was run by
European Shareholders. After that the Reserve Bank of India was established in April 1935.
At the time of first phase the growth of banking sector was very slow. Between 1913 and
1948 there were approximately 1100 small banks in India. To streamline the functioning and
activities of commercial banks, the Government of India came up with the Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as a Central Banking Authority. After
independence, Government has taken most important steps in regard of Indian Banking Sector
reforms. In 1955, the Imperial Bank of India was nationalized and was given the name "State
Bank of India", to act as the principal agent of RBI and to handle banking transactions all
over the country. It was established under State Bank of India Act, 1955. Seven banks
forming subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major
process of nationalization was carried out. At the same time 14 major Indian commercial
banks of the country were nationalized. In 1980, another six banks were nationalized, and
thus raising the number of nationalized banks to 20. Seven more banks were nationalized with
deposits over 200 Crores. Till the year 1980 approximately 80% of the banking segment in
India was under government’s ownership. On the suggestions of Narsimhan Committee, the
Banking Regulation Act was amended in 1993 and thus the gates for the new private sector
banks were opened. The following are the major steps taken by the Government of India to
Regulate Banking institutions in the country:-
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1949 : Enactment of Banking Regulation Act.
1955 : Nationalisation of State Bank of India.
1959 : Nationalization of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalisation of 14 major Banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalisation of seven banks with deposits over 200 Crores.
Nationalisation
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensured about the possibility to nationalise the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the
Government of India (GOI) in the annual conference of the All India Congress Meeting
the GOI issued an ordinance and nationalised the 14 largest commercial banks with
effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of
India, described the step as a "Masterstroke of political sagacity" Within two weeks of
the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition
and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August,
1969. A second step of nationalisation of 6 more commercial banks followed in 1980.
The stated reason for the nationalisation was to give the government more control of
credit delivery. With the second step of nationalisation, the GOI controlled around 91%
of the banking business in India. Later on, in the year 1993, the government merged New
Bank of India with Punjab National Bank. It was the only merger between nationalised
banks and resulted in the reduction of the number of nationalised banks from 20 to 19.
After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to
the average growth rate of the Indian economy. The nationalised banks were credited by
some; including Home minister P. Chidambaram, to have helped the Indian economy
withstand the global financial crisis of 2007-2009.
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Liberalisation
There are two areas of competitions which banking industry is facing internationally and
nationally. In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalisation, licensing a small number of private banks. In the pre-liberalization era, Indian
banks could grow in a closed economy but the banking sector opened up for private
competition. It is possible that private banks could become dominant players even within
India. These came to be known as New Generation tech- savvy banks, and included Global
Trust Bank (the first of such new generation banks to be set up), which later amalgamated
with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC
Bank. This move along with the rapid growth in the economy of India revolutionized the
banking sector in India which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks. The new policy
shook the banking sector in India completely. Use of ATM cards, Internet Banking,
Phone Banking, Mobile Banking are the new innovative channels of banking which are
being widely used as they res u lt in saving both time and money which are two essential
things that everyone is short of and is running to catch hold of them. Moreover private sector
banks are aligning its infrastructures, marketing quality and technology to build deep
commitment in building consumer and retail banking. The main focus of these banks is on
innovative range of services or products.
The Reserve Bank of India is an autonomous body, with minimal pressure from the
government. The stated policy of the Bank on the Indian Rupee is to manage volatility but
without any fixed exchange rate-and this has mostly been true. With the growth in the Indian
economy expected to be strong for quite some time-especially in its services sector-the
demand for banking services, especially retail banking, mortgages and investment services
are expected to be strong.
CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Indian banking industry has been divided into two parts, organized and unorganized sectors.
The organized sector consists of Reserve Bank of India, Commercial Banks and Co-operative
Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The unorganized sector,
which is not homogeneous, is largely made up of money lenders and indigenous bankers.An
outline of the Indian Banking structure may be presented as follows:
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1. Reserve bank of India
The reserve bank of India is a central bank and was established in April 1, 1935 in accordance
with the provisions of reserve bank of India act 1934. The central office of RBI is located at
Mumbai since inception. Though originally the reserve bank of India was privately owned,
since nationalization in 1949, RBI is fully owned by the Government of India. It was
inaugurated with share capital of Rs. 5 Crores divided into shares of Rs. 100 each fully paid
up.
RBI is governed by a central board (headed by a governor) appointed by the central
government of India. RBI has 22 regional offices across India. The reserve bank of India was
nationalized in the year 1949. The RBI Act 1934 was commenced on April 1, 1935. The Act,
1934 provides the statutory basis of the functioning of the bank. The bank was constituted for
the need of following:
Functions of RBI as a central bank of India are explained briefly as follows:

Bank of Issue: The RBI formulates, implements, and monitors the monitory policy. Its main
objective is maintaining price stability and ensuring adequate flow of credit to productive
sector.
Regulator-Supervisor of the financial system: RBI prescribes broad parameters of banking

operations within which the country’s banking and financial system functions. Their main
objective is to maintain public confidence in the system, protect depositor’s interest and
provide cost effective banking services to the public.
Manager of exchange control: The manager of exchange control department manages the
foreign exchange, according to the foreign exchange management act, 1999. The manager’s
main objective is to facilitate external trade and payment and promote orderly development
and maintenance of foreign exchange market in India.
Issuer of currency: A person who works as an issuer, issues and exchanges or destroys the
currency and coins that are not fit for circulation. His main objective is to give the public
adequate quantity of supplies of currency notes and coins and in good quality.
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Developmental role: The RBI performs the wide range of promotional functions to support
national objectives such as contests, coupons maintaining good public relations and many
more.
Related functions: There are also some of the related functions to the above mentioned main
functions. They are such as, banker to the government, banker to banks etc.
• Banker to government performs merchant banking function for the central and the
state governments; also acts as their banker.
• Banker to banks maintains banking accounts to all scheduled banks.
Controller of Credit: RBI performs the following tasks:

• It holds the cash reserves of all the scheduled banks.
• It controls the credit operations of banks through quantitative and qualitative controls.
• It controls the banking system through the system of licensing, inspection and calling
for information.
• It acts as the lender of the last resort by providing rediscount facilities to scheduled
banks.
Supervisory Functions: In addition to its traditional central banking functions, the Reserve
Bank performs certain non-monetary functions of the nature of supervision of banks and
promotion of sound banking in India
Indian Scheduled Commercial Banks

The commercial banking structure in India consists of scheduled commercial banks, and
unscheduled banks.
Scheduled Banks: Scheduled Banks in India constitute those banks which have been
included in the second schedule of RBI act 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42(6a) of the Act. “Scheduled
banks in India” means the State Bank of India constituted under the State Bank of India Act,
1955 (23 of 1955), a subsidiary bank as defined in the s State Bank of India (subsidiary
banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the
Banking companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or
any other bank being a bank included in the Second Schedule to the Reserve bank of India
Act, 1934 (2 of 1934), but does not include a co-operative bank”. For the purpose of
assessment of performance of banks, the Reserve Bank of India categories those banks as
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public sector banks, old private sector banks, new private sector banks and foreign banks, i.e.
private sector, public sector, and foreign banks come under the umbrella of scheduled
commercial banks.
Commercial Banks: Commercial banks may be defined as, any banking organisation that
deals with the deposits and loans of business organisations. Commercial banks issue bank
checks and drafts, as well as accept money on term deposits. Commercial banksalso act as
moneylenders, by way of installment loans and overdrafts. Commercial banks also allow for
a variety of deposit accounts, such as checking, savings, and time deposit. These institutions
are run to make a profit and owned by a group of individuals.
Public Sector Banks : The Public sector banks are those where govt holdings are more than
50% while nationalized banks are those banks which were nationalized in 1969 and 1980.
Thus all nationalized banks are public sector banks. Thus in total 27 PSB's are there
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.
Private Sector Banks: These are banks majority of share capital of the bank is held by
private individuals. These banks are registered as companies with limited liability.“Private
banks" can also refer to non-government owned banks in general, in contrast to government-
owned (or nationalized) banks, which were prevalent in communist, socialist and some social
democratic states in the 20th century. Private banks as a form of organisation should also not
be confused with "Private Banks" that offer financial services to high net worth individuals
and others.
Private banks are banks that are not incorporated. A private bank is owned by either an
individual or a general partner(s) with limited partner(s). In any such case, the creditors can
look to both the "entirety of the bank's assets" as well as the entirety of the sole-
proprietor's/general-partners' assets. These are the major players in the banking sector as well
as in expansion of the business activities India. Reserve Bank of India (RBI) came in picture
in 1935 and became the centre of every other bank taking away all the responsibilities and
functions of Imperial bank. The share of the private bank branches stayed nearly same
between 1980 and 2000. Then from early 1990’s, RBI's liberalization policy came in picture
and with this the government gave licenses to a few private banks, which came to be known
as new private sector banks.
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Examples of private sector banks are: ICICI Bank, Axis bank, HDFC, etc.
Foreign Banks: These banks are registered and have their headquarters in a foreign country
but operate their branches in our country. Now, foreign banks in India are permitted to set up
local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones
(except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will
not be able to open branches freely. Foreign banks have brought latest technology and latest
banking practices in India. Government has come up with a road map for expansion of foreign
banks in India.
Examples of foreign banks in India are: HSBC, Citibank, Standard Chartered Bank, JP
MorganChase Bank etc.
Regional Rural Bank: The government of India set up Regional Rural Banks (RRBs) on
October 2, 1975 . The banks provide credit to the weaker sections of the rural areas,
particularly the small and marginal farmers, agricultural laborers, and small entrepreneurs.
Initially, five RRBs were set up on October 2, 1975 which was sponsored by Syndicate Bank,
State Bank of India, Punjab National Bank, United Commercial Bank and United Bank of
India. The total authorized capital was fixed at Rs. 1 Crore which has since been raised to Rs.
5 Crores. There are several concessions enjoyed by the RRBs by Reserve Bank of India such
as lower interest rates and refinancing facilities from NABARD like lower cash ratio, lower
statutory liquidity ratio, lower rate of interest on loans taken from sponsoring banks,
managerial and staff assistance from the sponsoring bank and reimbursement of the expenses
on staff training. The RRBs are under the control of NABARD. NABARD has the
responsibility of laying down the policies for the RRBs, to oversee their operations, provide
refinance facilities, to monitor their performance and to attend their problems.
Co-operative Banks: Co-operative banks are small-sized units organized in the cooperative
sector which operate both in urban and non-urban centers. These banks are traditionally
centered around communities, localities and work place groups and they essentially lend to
small borrowers and businesses. A co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the customers of their bank. Co-operative
banks are often created by persons belonging to the same local or professional community or
sharing a common interest. Co-operative banks generally provide their members with a wide
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range of banking and financial services (loans, deposits, banking accounts, etc).They provide
limited banking products and are specialists in agriculture-related products.
Cooperative banks are the primary financiers of agricultural activities, some small-scale
industries and self-employed workers. Co-operative banks function on the basis of "no- profit
no-loss". Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India
located in the city of Vadodara in Gujarat.
Primary credit societies: These are formed in small locality like a small town or a village.
The members using this bank usually know each other and the chances of committing fraud is
minimal.
Central cooperative banks: These banks have their members who belong to the same
district. They function as other commercial banks and provide loans to their members. They
act as a link between the state cooperative banks and the primary credit societies.
State cooperative banks: these banks have a presence in all the states of the country and
have their presence throughout the state
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COMPANY PROFILE
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in 1806 in Calcutta. Three years later the bank
received its charter and was re–designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint–stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)
followed the Bank of Bengal. These three banks remained at the apex of modern banking in
India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo–Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernise India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.
The State Bank of India, the country’s oldest bank and a premier in terms of balance sheet
size, number of branches, market capitalization and profits is today going through a
momentous phase of change and transformation – the two hundred year old public sector
behemoth is today stirring out of its public sector legacy and moving with an agility to give
the private and foreign banks a run for their money.
The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one of these
initiatives having a huge potential for growth.
The bank is forging ahead with cutting edge technology and innovative new banking models,
to expand its rural banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next two years. At the end March, 2011, the total
number of branches was 13,542 while the number of ATMs stood at 20,084 across the
country.
20
It is also focusing at the top end of the market, on whole sale banking capabilities to provide
India’s growing mid / large corporate with a complete array of products and services. It is
consolidating its global treasury operations and entering into structured products and
derivative instruments. Today, the bank is the largest provider of infrastructure debt and the
largest arranger of external commercial borrowings in the country. It is the only Indian bank
to feature in the Fortune 500 list.
The bank is actively involved since 1973 in non–profit activity called Community Services
Banking. All branches and administrative offices throughout the country sponsor and
participate in large number of welfare activities and social causes. Their business is more
than banking because they touch the lives of people anywhere in many ways.State Bank of
India (SBI) has received an approval from the Government of India (GOI) for acquisition of
SBI Commercial and International Bank (SBICI Bank). The government had issued the
'Acquisition of SBICI Bank Order 2011' vide order dated July 29, 2011.
SBI entered the UK's home loan market, the bank started with mortgages for landlords, best
known as buy–to–let mortgages, with amounts ranging from £50,000 to £1.5 million, and
loan to value of ratios of up to 60 per cent.
In April 2014 State Bank of India launched three digital banking facilities for the
convenience of SBI customers. Two at the customer’s door step using TAB banking – one for
customers opening Savings Bank accounts and another for Housing Loan applicants. The
third is e–KYC (Know your Customer).
Services offered by the company:
 NRI Services
 Personal Banking
 International Banking
 Agriculture / Rural
 Corporate Banking
 SME
 Government Business
 Domestic Treasury
Subsidiaries:
Banking Subsidiaries
 State Bank of Bikaner and Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
21
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Travancore (SBT)
Foreign Subsidiaries
 SBI International (Mauritius) Ltd.
 State Bank of India (California)
 State Bank of India (Canada)
 INMB Bank Ltd, Lagos
 BANK SBI Indonesia (SBII)
Non banking Subsidiaries
 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI General Insurance Company Limited
Joint Ventures
 SBI Life Insurance Company Ltd (SBI LIFE)
 SBI General Insurance Company Limited
Funding National Development in the 20th Century

The rapid growth of the presidency banks came to an abrupt halt in 1876, when a new piece
of legislation, the Presidency Banks Act, placed all three banks under a common charter--and
a common set of restrictions. As part of the legislation, the British imperial government gave
up its ownership stakes in the banks, although they continued to provide a number of services
to the government, and retained some of the government's treasury capital. The majority of
that, however, was transferred to the three newly created Reserve Treasuries, located in
Calcutta, Bombay, and Madras. The Reserve Treasuries continued to lend capital to the
presidency banks, but on a more restrictive basis. The minimum balance now guaranteed
under the Presidency Banks Act was applicable only to the banks' central offices. With
branch offices no longer guaranteed a minimum balance backed by government funds, the
banks ended development of their networks. Only the Bank of Madras continued to grow for
some time, supplied as it was by the influx of capital from development of trade among the
region's port cities.
22
The loss of the government-backed balances was soon compensated by India's rapid
economic development at the end of the 19th century. The building of a national railroad
network launched the country into a new era, seeing the rise of cash-crop farming, a mining
industry, and widespread industrial development. The three presidency banks took active
roles in financing this development. The banks also extended their range of services and
operations, although for the time being were excluded from the foreign exchange market.
By the beginning of the 20th century, India's banking industry boasted a host of new arrivals,
and particularly foreign banks authorized to exchange currency. The growth of the banking
sector, and the development of indigenous banks, in turn created a need for a larger "bankers'
bank." At the same time, the Indian government had outgrown its colonial background and
now required a more centralized banking institution. These factors led to the decision to
merge the three presidency banks into a new, single and centralized banking institution, the
Imperial Bank of India.
Created in 1921, the Imperial Bank of India appeared to inaugurate a new era in India's
history--culminating in its declaration of independence from the British Empire. The Imperial
Bank took on the role of central bank for the Indian government, while acting as a bankers'
bank for the growing Indian banking sector. At the same time, the Imperial Bank, which,
despite its role in the government financial structure remained independent of the
government, carried on its own commercial banking operations.
In 1926, a government commission recommended the creation of a true central bank. While
some proposed converting the Imperial Bank into a central banking organization for the
country, the commission rejected this idea and instead recommended that the Imperial Bank
be transformed into a purely commercial banking institution. The government took up the
commission's recommendations, drafting a new bill in 1927. Passage of the new legislation
did not occur until 1935, however, with the creation of the Reserve Bank of India. That bank
took over all central banking functions.
The Imperial Bank then converted to full commercial status, which accordingly allowed it to
enter a number of banking areas, such as currency exchange and trustee and estate
management, from which it had previously been restricted. Despite the loss of its role as a
government banking office, the Imperial Bank continued to provide banking services to the
23
Reserve Bank, particularly in areas where the Reserve Bank had not yet established offices.
At the same time, the Imperial Bank retained its position as a bankers' bank.
Into the early 1950s, the Imperial Bank grew steadily, dominating the Indian commercial
banking industry. The bank continued to build up its assets and capital base, and also entered
a new phase of national expansion. By the middle of the 1950s, the Imperial Bank operated
more than 170 branch offices, as well as 200 sub-offices. Yet the bank, like most of the
colonial government, focused primarily on the country's urban regions.
By then, India had achieved its independence from Britain. In 1951, the new government
launched its first Five Year Plan, targeting in particular the development of the country's rural
areas. The lack of a banking infrastructure in these regions led the government to develop a
state-owned banking entity to fill the gap. As part of that process, the Imperial Bank was
nationalized and then integrated with other existing government-owned banking components.
The result was the creation of the State Bank of India, or SBI, in 1955.
The new state-owned bank now controlled more than one-fourth of India's total banking
industry. That position was expanded at the end of the decade, when new legislation was
passed providing for the takeover by the State Bank of eight regionally based, government-
controlled banks. As such the Banks of Bikaner, Jaipur, Idnore, Mysore, Patiala, Hyderabad,
Saurashtra, and Travancore became subsidiaries of the State Bank. Following the 1963
merger of the Bikaner and Jaipur banks, their seven remaining subsidiaries were converted
into associate banks.
In the early 1960s, the State Bank's network already contained nearly 500 branches and sub-
offices, as well as the three original head offices inherited from the presidency bank era. Yet
the State Bank now began an era of expansion, acting as a motor for India's industrial and
agricultural development, that was to transform it into one of the world's largest financial
networks. Indeed, by the early 1990s, the State Bank counted nearly 15,000 branches and
offices throughout India, giving it the world's single largest branch network.
SBI played an extremely important role in developing India's rural regions, providing the
financing needed to modernize the country's agricultural industry and develop new irrigation
methods and cattle breeding techniques, and backing the creation of dairy farming, as well as
24
pork and poultry industries. The bank also provided backing for the development of the
country's infrastructure, particularly on a local level, where it provided credit coverage and
development assistance to villages. The nationalization of the banking sector itself, an event
that occurred in 1969 under the government led by Indira Gandhi, gave SBI new prominence
as the country's leading bank.
Even as it played a primary role in the Indian government's industrial and agricultural
development policies, SBI continued to develop its commercial banking operations. In 1972,
for example, the bank began offering merchant banking services. By the mid-1980s, the
bank's merchant banking operations had grown sufficiently to support the creation of a
dedicated subsidiary, SBI Capital Markets, in 1986. The following year, the company
launched another subsidiary, SBI Home Finance, in a collaboration with the Housing
Development Finance Corporation. Then in the early 1990s, SBI added subsidiaries SBI
Factors and Commercial Services, and then launched institutional investor services.
Competitor in the 21st Century

SBI was allowed to dominate the Indian banking sector for more than two decades. In the
early 1990s, the Indian government kicked off a series of reforms aimed at deregulating the
banking and financial industries. SBI was now forced to brace itself for the arrival of a new
wave of competitors eager to enter the fast-growing Indian economy's commercial banking
sector. Yet years as a government-run institution had left SBI bloated--the civil-servant status
of its employees had encouraged its payroll to swell to more than 230,000. The bureaucratic
nature of the bank's management left little room for personal initiative, nor incentive for
controlling costs.
The bank also had been encouraged to increase its branch network, with little concern for
profitability. As former Chairman Dipankar Baku told the Banker in the early 1990s: "In the
aftermath of bank nationalisation everyone lost sight of the fact that banks had to be
profitable. Banking was more to do with social policy and perhaps that was relevant at the
time. For the last two decades the emphasis was on physical expansion."
Under Baku, SBI began retooling for the new competitive environment. In 1994, the bank
hired consulting group McKinsey & Co. to help it restructure its operations. McKinsey then
led SBI through a massive restructuring effort that lasted through much of the decade and
into the beginning of the next, an effort that helped SBI develop a new corporate culture
focused more on profitability than on social and political policy. SBI also stepped up its
25
international trade operations, such as foreign exchange trading, as well as corporate finance,
export credit, and international banking.
SBI had long been present overseas, operating some 50 offices in 34 countries, including full-
fledged subsidiaries in the United Kingdom, the United States, and elsewhere. In 1995 the
bank set up a new subsidiary, SBI Commercial and International Bank Ltd., to back its
corporate and international banking services. The bank also extended its international
network into new markets such as Russia, China, and South Africa.
Back home, in the meantime, SBI began addressing the technology gap that existed between
it and its foreign-backed competitors. Into the 1990s, SBI had yet to establish an automated
teller network; indeed, it had not even automated its information systems. SBI responded by
launching an ambitious technology drive, rolling out its own ATM network, then teaming up
with GE Capital to issue its own credit card. In the early 2000s, the bank began cross-linking
its banking network with its ATM network and Internet and telephone access, rolling out
"anytime, anywhere" banking access. By 2002, the bank had succeeded in networking its
3,000 most profitable branches.
The implementation of new technology helped the bank achieve strong profit gains into the
early years of the new century. SBI also adopted new human resources and retirement
policies, helping trim its payroll by some 20,000, almost entirely through voluntary
retirement in a country where joblessness remained a decided problem.
By the beginning of 2004, SBI appeared to be well on its way to meeting the challenges
offered by the deregulated Indian banking sector. In a twist, the bank had become an
aggressor into new territories, launching its own line of bancassurance products, and also
initiating securities brokering services. In the meantime, SBI continued its technology rollout,
boosting the number of networked branches to more than 4,000 at the end of 2003. SBI
promised to remain a central figure in the Indian banking sector as it entered its third century.
Principal Subsidiaries: Bank of Bhutan (Bhutan); Indo Nigeria Merchant Bank Ltd.
(Nigeria); Nepal SBI Bank Ltd. (Nepal); SBI (U.S.A.); SBI (Canada); SBI Capital Market
Ltd.; SBI Cards & Payments Services Ltd.; SBI Commercial and International Bank Ltd.;
SBI European Bank plc (U.K.); SBI Factors & Commercial Services Ltd.; SBI Funds
Management Ltd.; SBI Gilts Ltd.; SBI Home Finance Ltd.; SBI Securities Ltd.; State Bank
26
International Ltd. (Mauritius); State Bank of Bikaner & Jaipur; State Bank of Hyderabad;
State Bank of Indore; State Bank of Mysore; State Bank of Patiala; State Bank of Saurastra;
State Bank of Travancore.
ORGANISATION CHART
27
REVIEW OF LITERATURE
The study by ULLMAN (1966) was one of the first to examine found that even
employees who were recruitment by means of informal sources[i.e., employees referrals
direct application] had a lower turnover rate than individual recruited via formal sources this
publications of the study stimulated several additional recruitment sources studies eg: Gannan
1997; Saks 1994 some of these studies attempted to test whether the two expiation hypothesis
and the individual difference hypothesis have been offered to explain sources effects were
supported by empirical data
David L Curry university of Nebraska Unclon (1980) conducted a study on criteria and
procedure for the recruitment and selection of superintends for class iii school districts in
Nebraska .The purpose in the study was three fold a) to determine the actual criteria and
procedures utilized in the selection and recruitment of superintends in class iii districts in
Nebraska’s reported by board members b) to determine the perceptions of ideal criteria and
procedures as perceived by board members and superintends c) to recommend on the basis of
actual practice and perception of ideal a set of resource criteria and procedures for one in the
recruitment and selection of superintends for class iii school districts in Nebraska the review
of literature indicated that there little agreement as criteria and procedures which should be
used in the recruitment and selection of superintends.
Wannous (1980) found that it is a realistic one in which organization work group and job
are accurately described with positive as well as negative features. As a consequences of
recruitment is likely to do a more cost effective job of obtaining people who well asre less
inclined to become turnover statistics due to unrealized expectation. Kleximan and Clerk
(1984) found that job posting is another way of recruitment in house. The aim is to increase
awareness of employees about what job openings exists. Historically posting has been limited
to lower level jobs, but the trend is to post even for professional jobs.
Pidorko, Sleva (1986) conducted a study on “Self Direct Selection” to investigate the
final relationship between the controlled behavior and the controlling behavior self-directed
selection was discussed as a useful theoretical and technological conceptualism of self
management behavior.
28
Walkman, Deckpaul,(1987)conducted a study regarding teacher recruitment and selection
practices in Nebraska class ii and class iii school districts and their relationship to selection
factor. The findings of the study indicated that many districts lacked a plan for recruiting
teachers and most districts operated: as need assess: requirement programmed.
Miller, Raymond (1989) conducted a study on the evolution of selection criteria used in
identifying gifted elementary school science students was done to determine if test of the
fields of independence, formal thoughts/creative thinking were value addition to the gifted
selection criteria.
Keith Townsend (2007) conducted a study on recruitment, training and turnover to

consider one of these paradoxes, the extensive recruitment and training regimes in
workplaces that are faced with high level of turnover. It was found that the organization was
able to offset the cost of training and recruitment through internal transfers within the larger
organization.
Ian Cunningham (2007) conducted study on “Talent Management” to explore ways in

which organization can take a systematic stance on talent management. The need is for a
systematic approach to talent management. Just focusing on talent acquisition is misguided
and has real practical implications for leaders/managers and learners and development
professionals in setting up a functional strategy for talent management.
Mitchell Ross, Joo-Gim Heaney, Maxine Cooper (2007) conducted study on “institutional
and managerial factors affecting students recruitment management” to investigate
international students recruitment from an institutional perspective and to consider
institutional factors that may affect recruitment. Differences are found to exist between
universities and secondary schools in terms of their current international education
recruitment practices.
29
NEED FOR THE STUDY
Recruitment is the form of business competition, and it is fiercely competitive. Just as
corporations compete to develop, manufacture, and hire the most qualified people.
Recruitment is a business, and it is big business. It demands attention from the management
for any business strategy will falter without the talent to execute it.
The recruiting process must produce hires who would be effective for the organization for the
long run. As an additional goal of the recruiting efforts, the organization’s general image
should be enhanced to the extent that even unsuccessful applicants develop positive attitude
towards the company. Recruiting should be accomplished with the greatest speed and at the
least possible cost to the organization.
OBJECTIVES OF THE STUDY

Primary Objective:
The main objective of the study is that the effectiveness of the recruitment and
selection program adopted by SBI Limited.
Secondary Objective:
 To analyze the effectiveness of the current recruitment and selection procedure
 To find out the satisfaction of the employees regarding the prevailing recruitment and
selection procedure adopted in the organization.
 To study the major human resource practices at SBI Coimbatore Tamilnadu.
 To find relationship if any between respondents age, gender, education, etc and the
opinion about the methods of recruitment and selection practices.
 To offer suggestions to improve recruitment and selection practices of SBI.
LIMITATIONS OF THE STUDY

The following are the major limitations of the study
1) The study is conducted for a short period so a depth analysis may not be possible.
2) The people in the company were too busy that made situation difficult for the
researcher to collect the necessary data.
3) Due to the lack of time only 50 respondents were included in the study.
30
RESEARCH METHODOLOGY
RESEARCH DESIGN:
The research design is the arrangement of condition for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in procedure.
Research design is the conceptual structure within which researcher is conducted: it
constitutes the blue print for the collection, measurement and analysis of data.
RESEARCH TYPE:
The type or research used throughout in this project is” Descriptive” in nature. Descriptive
research studies are those which are concerned with describing the characteristics of a
particular individual or a group. The major purpose of descriptive research was the
descriptive of the state of affairs as it exists at present.
SOURCE OF DATA COLLECTED:

Primary source
Primary data are those which are collected for the first time and happen to be original in
character. The data was collected directly from the respondents through a well structured
questionnaire.
Secondary source
Secondary data are those which have already collected by someone else. The data was
collected from annual reports, company profile and the website.
POPULATION OF THE STUDY:

There are 200 employees in the organization.
SAMPLE SIZE
There are 200 employees out of which 50 were taken as sample.
SAMPLE DESIGN:
Simple random sampling from a finite population refers to the method of sample
selection, which gives each possible sample combination n equal probability of being picked
up.
31
STATISTICAL TOOLS USED:
Simple Percentage Analysis:
Data collected through questionnaire are analyzed and tabulated using simple percentage
analysis.
32
CHAPTER IV
ANALYSIS AND INTERPRETATION
TABLE NO.1 SHOWING THE DISTRIBUTION OF RESPONDENTS ON THE
BASIS OF THEIR AGE
S.NO PARTICULARS RESPONDENTS PERCENTAGE

1 20-30 21 42
2 30-40 17 34
3 40-50 8 16
4 50 & Above 4 8
Total 50 100
INFERENCE:
The above table shows that 42% of the respondents are in the age group 20-30, 34% are in
the age group 30-40, 16% in 40-50 and 8% of the respondents are in the age group of 50 and
above. So based on the data, we can understand that good percentage of employees are
involved in the age group of 20-30
33
CHART NO.1 SHOWING THE DISTRIBUTION OF RESPONDENTS ON THE
BASIS OF THEIR AGE
25
20
RESPONDENTS
15
RESPONDENTS
10
0
20-30 30-40 40-50 50 & Above
AGE
34
BASIS OF THEIR SEX
S.NO PARTICULARS RESPONDENT PERCENTAGE

1 MALE 40 80
2 FEMALE 10 20
Total 50 100
INFERENCE:
The above table shows that 80% of the respondents are male and 20% of respondents are
female.
35
BASIS OF THEIR SEX
45
40
35
RESPONDENTS
30
25
RESPONDENT
20
15
10
5
0
MALE FEMALE
SEX
36
BASIS OF THEIR MARITAL STATUS

1 Married 27 54
2 Un-Married 23 46
50 100
INFERENCE:
The above table shows that 54% of the respondents are married in the company and 46% of
respondents are unmarried.
37
BASIS OF THEIR MARITAL STATUS
28
27
26
RESPONDENTS
25
RESPONDENT
24
23
22
21
Married Un-Married
MARITAL STATUS
38
BASIS OF THEIR QUALIFICATION LEVEL IN THE RECRUITMENT

1 Graduation 24 48
2 Post Graduation 10 20
3 Diploma 10 20
4 ITI 6 12
Total 50 100
INFERENCE:
The above table shows that 48% of the respondents are having the qualification of
graduation, 20% of the respondents are post graduates 20% are diploma holders and 12% are
ITI. So based o the opinion we can understand that good percentage of employees are having
graduation background at the company.
39
BASIS OF THEIR QUALIFICATION LEVEL IN THE RECRUITMENT
30
25
RESPONDENTS
20
15 RESPONDENT
10
0
Graduation Post Diploma ITI
Graduation
QUALIFICATION
40
BASIS OF THEIR EXPERIENCE IN THE SAME ORGANIZATION

1 Below 5 Years 22 44
2 5-15 18 36
3 15-25 6 12
4 Above 25 4 8
Total 50 100
INFERENCE:
The table shows that 44% of the respondents are below 5 years of experience, 36% of the
respondents are 5-15 years, 12% of the respondents are on 15-25 years and the rest is above
25 years experience.
41
BASIS OF THEIR EXPERIENCE IN THE SAME ORGANIZATION
25
20
RESPONDENTS
15
RESPONDENT
10
0
Below 5 5 to 15 15 to 25 Above 25
Years
EXPERIENCE
42
BASIS OF THEIR SOURCE IN WHICH THE EMPLOYEES RECEIVED
INFORMATION REGARDING VACANCY

1 Newspaper 30 60
2 Campus Selection 7 14
3 Through employees 10 20
4 Others 3 6
Total 50 100
INFERENCE:
The above table shows that 60% of the respondents received the information through
newspaper, 14% through campus selection, 20% through employees of the same
organization, 6% of the respondents are through other sources.
43
BASIS OF THEIR SOURCE IN WHICH THE EMPLOYEES RECEIVED
INFORMATION REGARDING VACANCY
35
30
RESPONDENTS
25
20
RESPONDENT
15
10
5
0
Newspaper Campus Through Others
Selection employees
of same
organization
PARTICULARS
44
TABLE NO.7 SHOWING THE DISTRIBUTION OF RESPONDENTS WHETHER
THEY ARE SATISFIED IN THE PRESENT FORM OF RECRUITMENT PROCESS

1 Highly satisfied 17 34
2 Satisfied 24 48
3 Average 9 18
4 Dissatisfied - -
5 Highly dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 34% of the respondents are highly satisfied, 48% are satisfied,
and 18% of the respondents are average by the details expressed in the advertisement. So
based o the opinion we can understand that good percentage of employees are satisfied with
the details expressed in the advertisement to be clear and adequate.
45
CHART NO: 7 SHOWING THE DISTRIBUTION OF RESPONDENTS WHETHER
THEY ARE SATISFIED IN THE PRESENT FORM OF RECRUITMENT PROCESS
30
25
RESPONDENTS
20
15
10
0
Highly Satisfied Average Dissatisfied Highly
satisfied dissatisfied
RECRUITMENT PROCESS
46
BASIS THEY ARE BEEN SELECTED TO THE COMPANY

1 Interview 29 58
2 Written exam 14 28
3 GD 6 12
4 Others 1 2
Total 50 100
INFERENCE:
The above table shows that 58% of the respondents are of interview, 28of the respondents
are of written exam, 12% of the respondents are of group discussion and 2%0f the employees
are of others. So based o the opinion we can understand that employees are selected by
interview.
47
CHART NO: 8 SHOWING THE DISTRIBUTION OF RESPONDENTS ON THE
BASIS THEY ARE BEEN SELECTED TO THE COMPANY
35
30
RESPONDENTS
25
20
RESPONDENT
15
10
0
Interview Written GD Others
exam
SELECTION PROCESS
48
THEY HAVE GONE ANY TEST FOR THE SELECTION PROCESS

1 Yes 11 22
2 No 39 78
Total 50 100
INFERENCE:
The above table shows that 22% of the respondents have undergone any test and 78% of the
respondents have not undergone any test. So based on the opinion, we can understand that
78%of the respondents have not undergone any test in the organization.
49
CHART NO.9 SHOWING THE DISTRIBUTION OF RESPONDENTS WHETHER
THEY HAVE GONE ANY TEST FOR THE SELECTION PROCESS
45
40
35
RESPONDENTS
30
25
RESPONDENT
20
15
10
5
0
Yes No
TEST
50
BASIS OF NUMBER OF LEAVE THEY ARE TAKING

1 Below 3 days 15 30
2 3-5 days 14 28
3 5-7 days 11 22
4 7-10 days 10 20
Total 50 100
INFERENCE:
The above table shows that 30% of the respondents will take below 3 days leave, 28% of the
respondents will take 3-5 days leave, 22% of the respondents will take 5-7 days leave and
20% of the respondents will take 7-10 days of leave. So based on the opinion we can
understand that 30% of the respondents will take below 3 days leave in the organization.
51
BASIS OF NUMBER OF LEAVE THEY ARE TAKING
16
14
12
RESPONDENTS
10
8 RESPONDENT
6
4
2
0
Below 3 3-5 days 5-7 days 7-10 days
days
LEAVE TAKEN
52
THE DETAILS EXPRESSED IN THE ADVERTISEMENT WERE CLEAR AND
ADEQUATE

1 Highly Satisfied 21 42
2 Satisfied 27 54
3 Average 2 4
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 42% of the respondents are highly satisfied,
54% are satisfied and 4% of the respondents are average. So based on the opinion we can
understand that 54% of the respondents are satisfied that the advertisement were clear and
adequate
53
THE DETAILS EXPRESSED IN THE ADVERTISEMENT WERE CLEAR AND
ADEQUATE
30
25
RESPONDENTS
20
15 RESPONDENT
10
0
Satisfied dissatisfied
ADVERTISEMENT
54
THE RECRUITMENT AND SELECTION PROCESS IS RELATED WITH NATURE
OF JOB

1 Yes 39 78
2 No 11 22
Total 50 100
INFERENCE:
The above table shows that 78% of the respondents are yes that the selection and recruitment
process is related with the nature of the job and 22% of the respondents are no.
55
THE RECRUITMENT AND SELECTION PROCESS IS RELATED WITH NATURE
OF JOB
45
40
35
RESPONDENTS
30
25
RESPONDENT
20
15
10
5
0
Yes No
NATURE OF JOB
56
BASIS OF THE CATEGORY OF THE WORKERS

1 Skilled 34 68
2 Un skilled 2 4
3 Learners 4 8
4 Specialist 110 20
Total 50 100
INFERENCE:
The above table shows that 68% of the respondents are skilled workers, 4% of the
respondents are unskilled, 8% of the respondents are learners and 20% of the respondents are
specialists. So based on the opinion we can understand that 68%of the respondents are skilled
workers in the organization.
57
BASIS OF THE CATEGORY OF THE WORKERS
120
100
RESPONDENTS
80
60 RESPONDENT
40
20
0
Skilled Un skilled Learners Specialist
CATEGORY OF THE WORKERS
58
BASIS OF THE FACILITIES PROVIDED BY THE COMPANY

1 Yes 47 94
2 No 3 6
Total 50 100
INFERENCE:
The above table shows that 94% of the respondents are yes and 6% are no. so based on the
opinion we can understand that 94% of the respondents are satisfied with the facilities
provided by the company.
59
BASIS OF THE FACILITIES PROVIDED BY THE COMPANY
50
45
40
RESPONDENTS
35
30
25 RESPONDENT
20
15
10
5
0
Yes No
FACILITIES
60
BASIS OF THE ARRANGEMENTS GIVEN BY THE ORGANIZATION

2 Satisfied 25 50
3 Average 6 12
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 38% of the respondents are highly satisfied, 50% of the
respondents are satisfied and 12% of the respondents are average. So based on the opinion we
can understand that 50% of the respondents are satisfied with the safety arrangements
provided by the organization.
61
CHART NO. 15 SHOWING THE DISTRIBUTION OF RESPONDENTS ON THE
BASIS OF THE ARRANGEMENTS GIVEN BY THE ORGANIZATION
30
25
RESPONDENTS
20
15 RESPONDENT
10
0
ARRANGEMENTS GIVEN BY THE ORG.
62
BASIS OF MEDICAL FACILITIES GIVEN BY THE COMPANY

2 Satisfied 21 42
3 Average 9 18
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that40% of the respondents are highly satisfied, 42% of the
respondents are satisfied, and 18% of the respondents are average. Based on the opinion we
can understand that 42% of the respondents are satisfied with the medical facilities given by
the company.
63
BASIS OF MEDICAL FACILITIES GIVEN BY THE COMPANY
25
20
RESPONDENTS
15
RESPONDENT
10
0
MEDICAL FACILITIES
64
THEY HAVE UNDERGONE ANY INDUCTION PROGRAMME

1 Yes 37 74
2 No 13 26
Total 50 100
INFERENCE:
The above table shows that 74% of the respondents are yes and 26% are no. so based on the
opinion we can understand that 74% of the respondents are satisfied with the induction
program.
65
THEY HAVE UNDERGONE ANY INDUCTION PROGRAMME
40
35
30
RESPONDENTS
25
20 RESPONDENT
15
10
0
Yes No
INDUCTION PROGRAMME
66
TABLE NO.18 SHOWING THE DISTRIBUTION OF RESPONDENTS ABOUT THE
EFFECTIVENESS OF THE INDUCTION PROGRAMME

1 Yes 41 82
2 No 9 18
50 100
INFERENCE:
The above table shows that 82% of the respondents are satisfied with the effectiveness of the
induction program and 18% of the respondents are not satisfied with the effectiveness of
induction program conducted by the organization for the employees.
67
CHART NO.18 SHOWING THE DISTRIBUTION OF RESPONDENTS ABOUT THE
EFFECTIVENESS OF THE INDUCTION PROGRAMME
45
40
35
RESPONDENTS
30
25
RESPONDENT
20
15
10
5
0
Yes No
INDUCTION
68
EXPERTISE OF THE RECRUITER

2 Satisfied 26 56
3 Average 10 20
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 28% of the respondents are highly satisfied with the selection
process, 52% of the respondents are satisfied, and 20% of the respondents are average. So
based on the opinion we can understand that good percentage of the employees are satisfied
with the expertise of the recruiter in the organization.
69
30
25
RESPONDENTS
20
15 RESPONDENT
10
0
70
TABLE NO.20 SHOWING THE DISTRIBUTION OF RESPONDENTS REGARDING
OPINION ABOUT THE MEMBERS OF THE INTERVIEW BOARD

2 Satisfied 19 38
3 Average 6 12
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 50% of the respondents are highly satisfied, 38%of the
respondents are satisfied and 12% are average. So based on the opinion we can understand
that 50% of the respondents are highly satisfied.
71
CHART NO.20 SHOWING THE DISTRIBUTION OF RESPONDENTS REGARDING
OPINION ABOUT THE MEMBERS OF THE INTERVIEW BOARD
30
25
RESPONDENTS
20
15 RESPONDENT
10
0
MEMBERS OF INTERVIEW BOARD
72
SATISFACTION LEVEL OF THE INDUCTION PROGRAMME

2 Satisfied 24 48
3 Average 9 18
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 34% of the respondents are highly satisfied, 48% are satisfied,
18% are average. So based on the opinion we can understand that 48% of the respondents are
satisfied with the level of induction program.
73
SATISFACTION LEVEL OF THE INDUCTION PROGRAMME
30
25
RESPONDENTS
20
15 Series1
10
0
SATISFACTION LEVEL
74
THEY ARE SATISFIED WITH THE SERVICE PROVIDED BY THE FIRM ON THE
DAY OF INTERVIEW

2 Satisfied 20 40
3 Average 13 26
4 Dissatisfied - -
Total 50 100
INFERENCE:
The above table shows that 34% of the respondents are highly satisfied, 40% are satisfied
and 26% are average. So based on the opinion we can understand that 40% of the respondents
are satisfied with the service provided by the firm on the day of interview.
75
THEY ARE SATISFIED WITH THE SERVICE PROVIDED BY THE FIRM ON THE
DAY OF INTERVIEW
25
20
RESPONDENTS
15
RESPONDENT
10
0
SERVICE PROVIDED BY THE COMPANY
76
CHAPTER V
FINDINGS
MAJOR HR PRACTICES AT SBI LIMITED
 By the study researcher found that the company follows the entire major HR practices
effectively.
 The researcher found that the performance appraisal systems are different for
executives, staffs and operators.
 The researcher found that promotion is based on the performance and potential of the
employees.
 It is clear that tests conducted for the selection are much effective.
 The researcher found that the effectiveness of recruitment is good.
FINDINGS BASED ON SIMPLE PERCENTAGE ANALYSIS

 It is clear that majority (40%) of the employees are involved in the age group of 20-30
years.
 The majority (80%) of employees are male.
 The majority (54%) of employees are married.
 It is inferred that majority (48%) of employees are having the graduation.
 The majority (78%) of the employees have not undergone recruitment and selection
procedure.
 The majority (78%) of employees have agreed that it is related with nature of job.
 The majority (74%) of the respondents are satisfied in the induction program.
 The majority (82%) of the people say that their physical value in the job is good.
 It is inferred that majority (40%) of the respondents says that their effectiveness in the
usage of time is good.
 It is inferred that majority (40%) of the peoples opinion is that the clarity and
understandability of the job is very good.
 It is inferred that majority (50%) of the respondents are highly satisfied with the
members of the interview board in the organization.
77
FINDINGS BASED ON CHI-SQUARE ANALYSIS
 It is concluded that there is a relationship between the advertisement expressed was
clear and adequate and arrangement provided by the organization.
 There is a significant relationship between gender and opinion about the interview
board.
78
SUGGESTIONS
The organization shall think of customizing the job, the art of job customizing is
called job sculpting. It is an art that tailors a job to the deeply embedded life interest. The
employee who is not enjoying the job really causes the dissatisfaction, which creates a
problem in the organization and makes him resign for the job.
Job satisfaction plays an important role in individuals as well as in the organization

for its effective functioning, so matching people to the post foster the employees’ path of job.
Matching people to the post is not what one is good at, but kind of work one loves. This is so
called as the passion to perform such work or job.
 Make use of staffing assessment tools, for successful hiring, staff assessment tool
range from simple pre screening questions asking about salary expectation and work
eligibility ‘Talent Measures’ that assess candidates underlying motives, trades and
skill to be effective, it must meet the condition.
 They can be chosen on the basis of clear definition of performance in the job in
questions.
 They must effectively measure the key candidates’ characteristics that influence job
performance.
 They must develop in a standardized, consisted fashion that ensures that all candidates
are assessed in the same way.
79
CONCLUSION
The success of the company depends upon the quality of its human resource, which in
turn depends upon the recruitment and selection practices adopted by the company. In the
present study an attempt is made to study the recruitment and selection practice adopted by
SBI Limited. 60% of the employees received information regarding the vacancy in the
company through newspapers, 78% of the employees have undergone the test for the
recruitment and selection procedure, 74% of the employees have undergone the induction
program, 82% of the employees give the opinion that the induction program conducted by the
organization was effective. There is a significant relationship between age and opinion about
the advertisement effectiveness of the respondents. There is a significant relationship between
qualification and opinion about the quality of induction program of the respondents. There is
a significant relationship between gender and opinion about the interview board. Suggestions
were offered by the researcher to the management of the SBI Limited to improve their
Recruitment and Selection practices.
80
BIBLIOGRAPHY
BOOKS:
o Aswathappa.k, Human Resource and Personnel Management, Tata McGraw Hill
Publication.
o Edwin B Flippo” Personnel management” Tata McGraw Hill international edition,
1988
o Kothari.C.R. Research Methodology, by New age international Private Limited, New
Delhi, and second edition.
o Mamoria C.B. Personnel Management, Himalaya Publishing House, 1984
WEBSITE:
 www.SBIlimited.com
 www.SBI.world.com
 www.wikipedia.com
 http://www.emaraldinsight.com/
JOURNAL:
 Ian Cunningham, Development and Learning Organization, “Talent Management”,
Emerald Group Publishing Limited, volume 21, issue 2, pp 4-6
 Keith Townsend, Personnel Review, “Recruitment, training and turnover” Emerald
group Publishing Limited, volume 36, issue 3, 2007, pp 479-490.
81
A study on
QUESTIONNAIRE
1. Name
2. Age
a. 20-30
b. 30-40
c. 40-50
d. 50 & Above
3. Sex
a. Male
b. Female
4. Marital Status
a. Married
b. Un-Married
5. Educational Qualification
a. Graduation
b. Post Graduation
c. Diploma
d. ITI
6. Experience
a. Below 5 Years
b. 5-15
c. 15-25
d. Above 25
7. Which The Employees Received Information Regarding Vacancy
a. Newspaper
b. Campus Selection
c. Through employees
d. Others
8. They Are Satisfied In The Present Form Of Recruitment Process
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
82
e. Highly dissatisfied
9. the basis they are been selected to the company
a. Interview
b. Written exam
c. G D
d. Others
10. whether they have gone any test for the selection process
a. Yes
b. No
11. the basis of number of leave they are taking
a. Below 3 days
b. 3-5 days
c. 5-7 days
d. 7-10 days
12. whether the details expressed in the advertisement were clear and adequate
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
13. the recruitment and selection process is related with nature of job
a. Yes
b. No
14. the basis of the category of the workers
a. Skilled
b. Un skilled
c. Learners
d. Specialist
15. the basis of the facilities provided by the company
a. Yes
b. No
16. basis of the arrangements given by the organization
i. Highly satisfied
ii. Satisfied
83
iii. Average
iv. Dissatisfied
v. Highly dissatisfied
17. the basis of medical facilities given by the company
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
18. they have undergone any induction programme
a. Yes
b. No
19. about the effectiveness of the induction programme
a. Yes
b. No
20. about the expertise of the recruiter
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
21. regarding opinion about the members of the interview board
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
22. about the satisfaction level of the induction programme
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
23. they are satisfied with the service provided by the firm on the day of interview
84
a. Highly satisfied
b. Satisfied
c. Average
d. Dissatisfied
24. If any suggestion
_____________________________________________________________________
___
85

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CHAPTER I

1.1 INTRODUCTION TO THE STUDY

Recruitment is of different types viz,

(ii) External Recruitment

1959 : Nationalization of SBI subsidiaries.

1961 : Insurance cover extended to deposits.

1969 : Nationalisation of 14 major Banks.

1971 : Creation of credit guarantee corporation.

1975 : Creation of regional rural banks.

1980 : Nationalisation of seven banks with deposits over 200 Crores.

CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Functions of RBI as a central bank of India are explained briefly as follows:

Regulator-Supervisor of the financial system: RBI prescribes broad parameters of banking

Controller of Credit: RBI performs the following tasks:

Indian Scheduled Commercial Banks

Funding National Development in the 20th Century

Competitor in the 21st Century

Keith Townsend (2007) conducted a study on recruitment, training and turnover to

Ian Cunningham (2007) conducted study on “Talent Management” to explore ways in

OBJECTIVES OF THE STUDY

LIMITATIONS OF THE STUDY

SOURCE OF DATA COLLECTED:

POPULATION OF THE STUDY:

S.NO PARTICULARS RESPONDENTS PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

S.NO PARTICULARS RESPONDENT PERCENTAGE

FINDINGS BASED ON SIMPLE PERCENTAGE ANALYSIS

Job satisfaction plays an important role in individuals as well as in the organization

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