A STUDY ON RECRUITMENT AND SELECTION AT IDBI FEDERAL LIFE INSURANCE IN ERODE

A STUDY ON RECRUITMENT AND SELECTION AT IDBI FEDERAL LIFE
INSURANCE IN ERODE
Submitted by
R.JOTHYMANI
(Reg. No: 820816631025)
Of
E.G.S. PILLAY ENGINEERING COLLEGE
NAGAPATTINAM
A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCE
In partial fulfillment of the requirements
For the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI – 600 025
MAY, 2018

BONAFIDE CERTIFICATE
Certificate that this summer training report titled “A STUDY ON RECRUITMENT
AND SELECTION IN IDBI FEDERAL LIFE INSURANCE AT ERODE” is bonafide
work of Mr. R. Jothymani Registration Number: 8208166310025 who carried out the
training under my supervision. Certified further, that to the best of my knowledge the work
reported here in does not form part of any other summer training report on the basis of which a
degree or award was conferred on an earlier occasion on their or any other candidate.
Supervisor Director
Viva voce examination held on .
Internal Examiner External Examiner

TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. JOTHYMANI R (820816631025) Final year of the E.G.S
PILLAY ENGINEERING COLLEGE, NAGAPATTINAM has done Project entitled “A
STUDY ON RECRUITMENT AND SELECTION” from 20th
December 2017 to 15th
March 2018 in our organization in partial fulfillment of the requirements of the award
of degree of Master of Business Administration.
V KANNAN
BRANCH MANAGER
IDBI FEDERAL LIFE INSURANCE CO LTD
ERODE.

ABSTRACT
This project report includes Meaning and Definition of Recruitment and Selection,
Need and Purpose of Recruitment, Evaluation of Recruitment Process, Recruitment Tips.
Sources of Recruitment through which an Organization gets suitable application.
Scientific Recruitment and Selection, which an Organization should follow for, right
manpower. Job Analysis, which gives an idea about the requirement of the job.
Next is Selection process, which includes steps of Selection, Types of Test, Types of
Interview, Common Interview Problems and their Solutions. Approaches to Selection,
Scientific Selection Policy, Selection in India and problems.
The objective of the study is to help the organization to know the recruitment and
selection process. The questionnaire was prepared and response was notes for 138 employees
in IDBI Federal Life Insurance Company limited. The data was tabulated and analyzed using
simple statistical tools like,
 Percentage analysis
 Chi-Square test
 Anova

ACKNOWLEDGEMENT
I would like to thank Mrs. JOTHIMANI, CHAIRMAN OF E.G.S. PILLAY
ENGINEERING COLLEGE, NAGAPATTINAM for providing an excellent learning
ambience.
I would like to thank Principal Dr.R. RAMABALAN, E.G.S. PILLAY
ENGINEERING COLLEGE, NAGAPATTINAM for his invaluable inputs, encouragement
knowledge facilitation.
I am ineffably indebted to HOD/MBA Dr.R. KARTHI for conscientious guidance
and encouragement to accomplish this assignment.
I am highly indebted to Mr.KARTHI, (BRANCH MANAGER) AND
Ms.SOORIYA KALA, (TEAM LEADER), IDBI FEDERAL LIFE INSURANCE,
ERODE for their guidance and constant supervision as well as for providing necessary
information regarding the project & also for their support in completing the project.
I take this opportunity to express my deep sense of gratefulness to my faculty
supervisor Mrs. A. UMADEVI, for her constant assistance and guidance to compile this
project report.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents
and member of my family, who has always supported me morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or indirectly
helped me to complete this project report.

TABLE OF CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.
ABSTRACT (iii)
LIST OF TABLES (vi)
LIST OF CHARTS (vii)
I
CHAPTER – I
1.1 INTRODUCTION 2
1.2 SCOPE OF THE STUDY 17
1.3 OBJECTIVES OF THE STUDY 18
1.4 NEEDS OF THE STUDY 19
1.5 LIMITATION OF THE STUDY 20
1.6 CHAPTER SCHEME 21
1.7 REVIEW OF LITERATURE 22
1.8 COMPANY PROFILE 29
1.9 RESEARCH METHODOLOGY 36
II CHAPTER – II
2.1 DATAANALYSIS & INTERPRETATION 40
III
CHAPTER – III
3.1 FINDINGS 70
3.2 SUGGESTION 71
3.3 CONCLUSION 72
APPENDICES
REFERENCES 74
QUESTIONNAIRE 75

LIST OF TABLES
S. NO. INDEX PAGE NO.
2.1.1 RESPONDENTS BY THE GENDER 40
2.1.2 RESPONDENTS BY THEIR AGE 41
2.1.3 DESIGNATION OF THE RESPONDENTS 42
2.1.4 EDUCATIONAL QUALIFICATION OF THE
RESPONDENTS
43
2.1.5 EXPERIENCE OF THE RESPONDENTS 44
2.1.6 FORM OF INTERVIEW 45
2.1.7 RECRUITING POSITION 46
2.1.8 KIND OF PERSONAL INTERVIEW 47
2.1.9 ADOPT FOR SOURCE THE CANDIDATE 48
2.1.10 RESPONDS TO APPLICATION 49
2.1.11 SOURCE OF RECRUITMENT & SELECTION 50
2.1.12 INTERNAL SOURCING 51
2.1.13 EXTERNAL SOURCING 52
2.1.14 FORM OF RECRUITMENT 53
2.1.15 SELECTIN PROCEDURE AND METHODS 54
2.1.16 TEST TAKE A LONG TIME PERIOD TO CONDUCT 55
2.1.17 THE ORGANIZATION LOOKS FOR IN A CANDIDATE 56
2.1.18 STAISFIED WITH ROUND OF INTERVIEWS 57
2.1.19 RECURITMENT AND SELECTION OF THE EMPLOYER 58
2.1.20 ORGANIZATION PLAN THE RECRUITMENT POLICY 59
2.1.21 ADVERTISING VACANCIES FOR EMPLOYEMENT 60
2.1.22 REJECTED CANDIDATES INFORMED 61
2.1.23 INNOVATIVE TECHNIQUES 62
2.1.24 ORGANIZATION CONDUCTING TEST FOR SELECTION 63
2.1.25 SELECTION POLICY OF THE ORGANIZATION 64

LIST OF CHARTS
S. NO. INDEX PAGE NO.
2.1.1 RESPONDENTS BY THE GENDER 40
2.1.2 RESPONDENTS BY THEIR AGE 41
2.1.3 DESIGNATION OF THE RESPONDENTS 42
2.1.4 EDUCATIONAL QUALIFICATION OF THE
RESPONDENTS
43
2.1.5 EXPERIENCE OF THE RESPONDENTS 44
2.1.6 FORM OF INTERVIEW 45
2.1.7 RECRUITING POSITION 46
2.1.8 KIND OF PERSONAL INTERVIEW 47
2.1.9 ADOPT FOR SOURCE THE CANDIDATE 48
2.1.10 RESPONDS TO APPLICATION 49
2.1.11 SOURCE OF RECRUITMENT & SELECTION 50
2.1.12 INTERNAL SOURCING 51
2.1.13 EXTERNAL SOURCING 52
2.1.14 FORM OF RECRUITMENT 53
2.1.15 SELECTIN PROCEDURE AND METHODS 54
2.1.16 TEST TAKE A LONG TIME PERIOD TO CONDUCT 55
2.1.17 THE ORGANIZATION LOOKS FOR IN A CANDIDATE 56
2.1.18 STAISFIED WITH ROUND OF INTERVIEWS 57
2.1.19 RECURITMENT AND SELECTION OF THE EMPLOYER 58
2.1.20 ORGANIZATION PLAN THE RECRUITMENT POLICY 59
2.1.21 ADVERTISING VACANCIES FOR EMPLOYEMENT 60
2.1.22 REJECTED CANDIDATES INFORMED 61
2.1.23 INNOVATIVE TECHNIQUES 62
2.1.24 ORGANIZATION CONDUCTING TEST FOR SELECTION 63
2.1.25 SELECTION POLICY OF THE ORGANIZATION 64

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1.1 INTRODUCTION ABOUT THE TITLE OF
RECURITMENT AND SELECTION
RECURITMENT
The process of finding and hiring the best-qualified candidate (from within or outside of
an organization) for a job opening, in a timely and cost effective manner. The recruitment
process includes analyzing the requirements of a job, attracting employees to that job,
screening and selecting applicants, hiring, and integrating the new employee to the
organization.
MEANING
Recruitment is a positive process of searching for prospective employees and
stimulating them to apply for the jobs in the organisation. When more persons apply for jobs
then there will be a scope for recruiting better persons.
The job-seekers too, on the other hand, are in search of organisations offering them
employment. Recruitment is a linkage activity bringing together those with jobs and those
seeking jobs. In simple words, the term recruitment refers to discovering the source from
where potential employees may be selected. The scientific recruitment process leads to higher
productivity, better wages, high morale, reduction in labour turnover and enhanced
reputation. It stimulates people to apply for jobs; hence it is a positive process.
Recruitment is concerned with reaching out, attracting, and ensuring a supply of
qualified personnel and making out selection of requisite manpower both in their quantitative
and qualitative aspect. It is the development and maintenance of adequate manpower
resources. This is the first stage of the process of selection and is completed with placement.
DEFINITION
According to Edwin B. Flippo, “It is a process of searching for prospective employees
and stimulating and encouraging them to apply for jobs in an organisation.” He further
elaborates it, terming it both negative and positive.
He says, “It is often termed positive in that it stimulates people to apply for jobs, to
increase the hiring ratio, i.e. the number of applicants for a job. Selection, on the other hand,
tends to be negative because it rejects a good number of those who apply, leaving only the
best to be hired. ”
Kempner writes, “Recruitment forms the first stage in the process which continues
with selection and ceases with the placement of the candidates.”
In personnel recruitment, management tries to do far more than merely fill job
openings. As a routine the formula for personnel recruitment would be simple i.e., just fill the
job with any applicant who comes along.

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RECRUITMENT PROCESS
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning involves to
draft a comprehensive job specification for the vacant position, outlining its major and minor
responsibilities; the skills, experience and qualifications needed; grade and level of pay;
starting date; whether temporary or permanent; and mention of special conditions, if any,
attached to the job to be filled ”
2. Strategy Development:
Once it is known how many with what qualifications of candidates are required, the
next step involved in this regard is to devise a suitable strategy for recruiting the candidates in
the organisation.
The strategic considerations to be considered may include issues like whether to
prepare the required candidates themselves or hire it from outside, what type of recruitment
method to be used, what geographical area be considered for searching the candidates, which
source of recruitment to be practiced, and what sequence of activities to be followed in
recruiting candidates in the organisation.
3. Searching:
This step involves attracting job seekers to the organisation. There are broadly two
sources used to attract candidates.
These are:
(a) Internal Sources
(b) External Sources
4. Screening:
Though some view screening as the starting point of selection, we have considered it
as an integral part of recruitment. The reason being the selection process starts only after the
applications have been screened and shortlisted. Let it be exemplified with an example.
In the Universities, applications are invited for filling the post of Professors.
Applications received in response to invitation, i.e., advertisement are screened and
shortlisted on the basis of eligibility and suitability. Then, only the screened applicants are
invited for seminar presentation and personal interview. The selection process starts from
here, i.e., seminar presentation or interview.
Job specification is invaluable in screening. Applications are screened against the
qualification, knowledge, skills, abilities, interest and experience mentioned in the job
specification. Those who do not qualify are straightway eliminated from the selection
process.

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The techniques used for screening candidates vary depending on the source of supply
and method used for recruiting. Preliminary applications, de-selection tests and screening
interviews are common techniques used for screening the candidates.
5. Evaluation and Control:
Given the considerable cost involved in the recruitment process, its evaluation and
control is, therefore, imperative.
The costs generally incurred in a recruitment process include:
(i) Salary of recruiters
(ii) Cost of time spent for preparing job analysis, advertisement
(iii) Administrative expenses
(iv) Cost of outsourcing or overtime while vacancies remain unfilled
(v) Cost incurred in recruiting unsuitable candidates
In view of above, it is necessary for a prudent employer to try to answer certain
questions like: whether the recruitment methods are appropriate and valid? And whether the
recruitment process followed in the organisation is effective at all or not? In case the answers
to these questions are in negative, the appropriate control measures need to be evolved and
exercised to tide over the situation.
However, such an exercise seems to be only rarely carried out in practice by the
organisations employers. Having discussed recruitment process, it will be now relevant to
have an idea about recruitment practices in India. The following section delineates the same.

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SOURCES OF RECRUITMENT OF EMPLOYEES:
INTERNAL AND EXTERNAL
The searching of suitable candidates and informing them about the openings in the
Insurance Company is the most important aspect of recruitment process.
The candidates may be available inside or outside the Company. Basically, there are
two sources of recruitment i.e., internal and external sources.
(A) INTERNAL SOURCES
Best employees can be found within the organisation… When a vacancy arises in the
organisation, it may be given to an employee who is already on the pay-roll. Internal sources
include promotion, transfer and in certain cases demotion. When a higher post is given to a
deserving employee, it motivates all other employees of the organisation to work hard. The
employees can be informed of such a vacancy by internal advertisement.
Methods of Internal Sources:
The Internal Sources Are Given Below:
1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These do not
involve any change in rank, responsibility or prestige. The numbers of persons do not
increase with transfers.
2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher
responsibilities and more pay. The higher positions falling vacant may be filled up from
within the organisation. A promotion does not increase the number of persons in the
organisation.
A person going to get a higher position will vacate his present position. Promotion
will motivate employees to improve their performance so that they can also get promotion.

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3. Present Employees:
The present employees of a concern are informed about likely vacant positions. The
employees recommend their relations or persons intimately known to them. Management is
relieved of looking out prospective candidates.
The persons recommended by the employees may be generally suitable for the jobs
because they know the requirements of various positions. The existing employees take full
responsibility of those recommended by them and also ensure of their proper behaviour and
performance.
Advantages of Internal Sources
1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in
increasing the morale of all employees. Generally every employee expects promotion to a
higher post carrying more status and pay (if he fulfills the other requirements).
2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors in
selection since every company maintains complete record of its employees and can judge
them in a better manner.
3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of chances
of advancement.
4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing employees
are well tried and can be relied upon.
5. Economy in Training Costs:
The existing employees are fully aware of the operating procedures and policies of the
organisation. The existing employees require little training and it brings economy in training
costs.
6. Self-Development:
It encourages self-development among the employees as they can look forward to
occupy higher posts. Disadvantages of Internal Sources:
(i) It discourages capable persons from outside to join the concern.
(ii) It is possible that the requisite number of persons possessing qualifications for the vacant
posts may not be available in the organisation.

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(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot
be followed.
(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may
not be really capable. Inspire of the disadvantages, it is frequently used as a source of
recruitment for lower positions. It may lead to nepotism and favouritism. The employees may
be employed on the basis of their recommendation and not suitability.
(B) EXTERNAL SOURCES
All organisations have to use external sources for recruitment to higher positions
when existing employees are not suitable. More persons are needed when expansions are
undertaken.
Methods of External Source
1. Advertisement:
It is a method of recruitment frequently used for skilled workers, clerical and higher staff.
Advertisement can be given in newspapers and professional journals. These advertisements
attract applicants in large number of highly variable quality. Preparing good advertisement is
a specialised task. If a company wants to conceal its name, a ‘blind advertisement’ may be
given asking the applicants to apply to Post Bag or Box Number or to some advertising
agency.
2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-
skilled, skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases
it has been made obligatory for the business concerns to notify their vacancies to the
employment exchange. In the past, employers used to turn to these agencies only as a last
resort. The job-seekers and job givers are brought into contact by the employment exchanges.
3. Schools, Colleges and Universities:
Direct recruitment from educational institutions for certain jobs (i.e. placement) which
require technical or professional qualification has become a common practice. A close liaison
between the company and educational institutions helps in getting suitable candidates. The
students are spotted during the course of their studies. Junior level executives or managerial
trainees may be recruited in this way.
4. Recommendation of Existing Employees:
The present employees know both the company and the candidate being
recommended. Hence some companies encourage their existing employees to assist them in
getting applications from persons who are known to them. In certain cases rewards may also
be given if candidates recommended by them are actually selected by the company. If
recommendation leads to favouritism, it will impair the morale of employees.

8
5. Factory Gates:
Certain workers present themselves at the factory gate every day for employment.
This method of recruitment is very popular in India for unskilled or semi-skilled labour. The
desirable candidates are selected by the first line supervisors. The major disadvantage of this
system is that the person selected may not be suitable for the vacancy.
6. Casual Callers:
Those personnel who casually come to the company for employment may also be
considered for the vacant post. It is most economical method of recruitment. In the advanced
countries, this method of recruitment is very popular.
7. Central Application File:
A file of past applicants who were not selected earlier may be maintained. In order to
keep the file alive, applications in the files must be checked at periodical intervals.
8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e., industries
where there is instability of employment) all recruits usually come from unions. It is
advantageous from the management point of view because it saves expenses of recruitment.
However, in other industries, unions may be asked to recommend candidates either as a
goodwill gesture or as a courtesy towards the union.
9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and semi-
skilled workers in brick klin industry. The contractors keep themselves in touch with the
labour and bring the workers at the places where they are required. They get commission for
the number of persons supplied by them.
10. Former Employees:
In case employees have been laid off or have left the factory at their own, they may be
taken back if they are interested in joining the concern (provided their record is good).
11. Other Sources:
Apart from these major sources of external recruitment, there are certain other sources
which are exploited by companies from time to time. These include special lectures delivered
by recruiter in different institutions, though apparently these lectures do not pertain to
recruitment directly.
Then there are video films which are sent to various concerns and institutions so as to
show the history and development of the company. These films present the story of company
to various audiences, thus creating interest in them.

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Various firms organise trade shows which attract many prospective employees. Many
a time advertisements may be made for a special class of work force (say married ladies) who
worked prior to their marriage.
These ladies can also prove to be very good source of work force. Similarly there is
the labour market consisting of physically handicapped. Visits to other companies also help
in finding new sources of recruitment.
Merits of External Sources
1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from within.
External sources do give a wide choice to the management. A large number of applicants may
be willing to join the organisation. They will also be suitable as per the requirements of skill,
training and education.
2. Brings New Ideas:
The selection of persons from outside sources will have the benefit of new ideas. The
persons having experience in other concerns will be able to suggest new things and methods.
This will keep the organisation in a competitive position.
3. Economical:
This method of recruitment can prove to be economical because new employees are
already trained and experienced and do not require much training for the jobs.
Demerits of External Sources
1. Demoralisation:
When new persons from outside join the organisation then present employees feel
demoralised because these positions should have gone to them. There can be a heart burning
among old employees. Some employees may even leave the enterprise and go for better
avenues in other concerns.
2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that their
right has been snatched away by them. This problem will be acute especially when persons
for higher positions are recruited from outside.
3. Expensive:
The process of recruiting from outside is very expensive. It starts with inserting costly
advertisements in the media and then arranging written tests and conducting interviews. In
spite of all this if suitable persons are not available, then the whole process will have to be
repeated.

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4. Problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust in the
new environment. They may not temperamentally adjust with the new persons. In such cases
either the persons may leave themselves or management may have to replace them. These
things have adverse effect on the working of the organisation.
Suitability of External Sources of Recruitment:
External Sources of Recruitment are Suitable for The Following Reasons:
(i) The required qualities such as will, skill, talent, knowledge etc., are available from
external sources.
(ii) It can help in bringing new ideas, better techniques and improved methods to the
organisation.
(iii) The selection of candidates will be without preconceived notions or reservations.
(iv) The cost of employees will be minimum, because candidates selected in this
method will be placed in the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human
resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest of the
organisation.

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SELECTION
Finding the interested candidates who have submitted their profiles for a particular job
is the process of recruitment, and choosing the best and most suitable candidates among them
is the process of selection. It results in elimination of unsuitable candidates. It follows
scientific techniques for the appropriate choice of a person for the job.
The recruitment process has a wide coverage as it collects the applications of
interested candidates, whereas the selection process narrows down the scope and becomes
specific when it selects the suitable candidates.
Stone defines, ‘Selection is the process of differentiating between applicants in order
to identify (and hire) those with a greater likelihood of success in a job’.
MEANING AND DEFINITION OF SELECTION
Selection is the next step after recruitment. Theos A Langlie writes, “The manager’s
concern with techniques of personal selection is that they are so designed and administered
that they provide the basis for effective and economical manning of jobs in the organisation.”
A manager is not a technician but he must be prepared to understand selection
techniques. I must be aware of the extent to which the organisational objectives are being
achieved by this function and the nature of measuring individual differences.
He must be capable of intelligently approving performance criteria and standards. He
should be aware of the importance of the personal research function and provide essential
support to it. Apart from this, it is necessary that employment policy is also realistic. The
policy that calls for the employment only of those who have a potential expected to rise to
high positions will be quite unrealistic.
The policy must recognise the limitations of selection techniques taking into account
the significance of averages, variability errors of system and attempt to leave the mass of
workers with some proporation of higher expected individuals.
The procedure of selection is concerned with securing of relevant information about
an applicant. There are a number of steps involved in this process. At each such step some
candidates are dropped and the remaining move on. This is the reason that some authors have
nick named the process of selection as the process of rejection.
Qualified applicants go on to the next hurdle, while the unqualified are eliminated.
Koontz O’Donnell and Weihrich write, “Selecting a manager is choosing logically from
among the candidates the one that best meets the position requirements. In the selection
approach applicants are sought to fill position with rather specific requirements.”
According to Blum and Nylor “An effective selection programme is a non-random
process because those selected have been chosen on the basis of the assumption that they are
more likely to be better employees than those who have been rejected.”

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Regarding selection procedure the observations of National International
Conference Board are as under:
“A traditional selection process includes preliminary screening interview, completion
of an application form, employment tests, comprehensive interview, background
investigation, physical examination and final employment decision to hire.”
SELECTION PROCEDURE
MEANING
The selection process starts immediately after recruitment. It is a process of
eliminating (among all the candidates considered for possible employment) those who appear
unpromising. Selection process requires exactness.
It is essential to study job description and application blank simultaneously. Tests,
interview and reference checking can provide extra information about the applicants. It is not
an easy process. In fact, it is a very critical process.
The selection procedure consists of a series of methods or steps or stages by which
additional information is secured about an applicant. At each stage facts may come to light
which may lead to the rejection of an applicant. Selection procedure may be compared to a
series of barriers which an applicant is required to cross before he is finally selected.
Essentials of a Selection Procedure:
The selection procedure should be planned in such a way that it suits the organisation’s
needs. The Procedure would be Successful if it satisfies the following Requirements:
(i) There should be sufficient number of applicants from whom the required number
of candidates may be selected. The selection will not be proper if number of
candidates is
(ii) There should be some person who is assigned the authority to select. The authority
is given on the basis of type of persons to be selected and the nature of work they
will take up.
(iii) There should be some standard with which a prospective employee may be
compared (i.e. these should be available beforehand a comprehensive job
specification as developed by job analysis.)
Significance of Selection Procedure:
The success of an organisation depends on the personnel working therein. If right
persons are selected, then organisational goals can be easily achieved. The selection of wrong
personnel may create many problems for the organisation. Training needs of such employees
will be more, resulting into additional expenditures.

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The employer- employee relations may not be congenial. A right person is an asset for
the organisation whereas a wrong selection makes him a liability. Selection procedure should
be devised in such a way that right persons are selected and wrong ones are rejected.
The selection procedure should be devised in such a manner that all relevant
information concerning the applicant is made available. Whether the procedure is simple or
complicated depends on the nature of the job. The candidate will be selected after he clears
all the hurdles. The applicant should neither be over qualified nor under qualified for the post.
In both the cases he is a misfit and may leave the organisation any time. A wrong
selection means a heavy loss to an organisation in terms of expenditure incurred on selection,
induction, training and subsequent poor performance of an employee. Therefore, a well
planned selection procedure is of utmost importance for every organisation.
Eight Procedures Evolved in the Selection Process of Employees
Selection process starts where recruitment ends. Selection means fitting a round peg
in a round hole. This is done by comparing the requirements of a job with the qualifications
and experience of a candidate. Since the basic purpose of selection is to find out right kind of
people to fill the available positions, an orderly and systematic procedures is, therefore,
always advisable.

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Past experience suggests that in most cases to select both over-qualified and under-
qualified people turns to be costlier to the employer-enterprise. While selection of over-
qualified people results frustration on the part of the employees, selecting under qualified
people invites indignation of the employer frequently. Thus, selection is a critical function in
the personnel relations in every way.
Although, the selection procedure varies from place to place and enterprise to
enterprise, we can discuss the more common methods used. However, no all enterprises are
bound to use all the steps and techniques of selection which we are discussing. Instead, the
enterprise should relate selection method to job success.
In other words, which methods of selection best predict job success for certain types
of works? The answer can often be obtained by using statistical methods called regression
analysis and correlation (Stockton 1966). To find out the best available candidate for a job,
we shall now discuss some of the more common selection procedures used in small-scale
enterprises in India.
1. Preliminary Interview:
If the recruitment programme is non-selective (not trying to appeal to a special group
of applicants, such as college-trained personnel or experienced carpenters), the preliminary
interview is likely to be used in selection. This interview is short, often lasting for ten-fifteen
minutes. The basic purpose of the preliminary interview is to determine an applicant’s
suitability for further consideration.
Basic questions such as age, present occupation, and experience are asked in this
interview. The kind of work available in the enterprise is explained by the interviewer. If
there is felt some chance of successful placement, the applicant is allowed to continue the rest
of the selection procedure.
2. Application Blank:
Application blank is commonly used in the selection process. Questions like work
history, educational level, work experience and the type of work applied for are asked in the
question blank. From a perusal of this record, the employer can form a broad idea about the
applicant’s potential. Application blanks contain questions related to the probability of job
success. The format used for this purpose varies from enterprise to enterprise.
3. Psychological Test:
Most psychological tests administered in the enterprises are paper-and- pencil. The
test taker is given a series of questions and a choice of two or more possible answers to each
question. The candidate must then choose the answer that he/she feels correct.
Psychological test generally includes the following:
Aptitude Test: This is a test measuring intelligence of the applicant and his ability to learn
certain skills.

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Performance Test: It is a test that measures one’s current knowledge of a specific subject.
Personality Test: Under this test, an applicant’s personality traits such as dominance,
sociability and conformity are measured.
Interest Test: As the name of the test itself denotes, this is a test that measures one’s interest
in various fields of work.
4. References:
Nowadays, almost all good enterprises ask an applicant for the names of others who
can tell them something about his/her past. Frankly speaking, personal references are
generally unreliable and biased. Many a times, these reference persons are not well qualified
to judge one’s past work performance. Therefore, the names of previous employees and
teachers are considered more reliable and unbiased in giving judgment about one’s past
experience / performance. That is why an applicant is asked to mention about his educational
qualification and all previous jobs held. As regards contacting references, it is considered best
to do so in person. Compared to a written request for information, a telephonic talk is better.
The reason is not difficult to seek. A telephonic talk or face-to-face contact becomes more
frank in giving an employee’s past performance. This is a general observation that many
people become reluctant to put up uncomplimentary remarks about anyone in writing. In
addition, one’s tone of voice and facial expression can reveal a great deal about his true
opinion of someone.
5. Interview:
After all the above formalities are over, an interview is conducted with the applicant.
It is an interview that facilitates an interviewer to evaluate more effectively the applicant’s
potential for success in the particular job. In spite of being somewhat subjective, the
interview as a method has been the most commonly used selection device in all types of
organizations. In fact, the basic objective of an interview device should be to measure those
qualities and traits that cannot be better measured by some other devices like testing or
application blank. Thus, by definition, an interview is, in part at least, subjective since the
more easily measurable qualities/tracts are measured by other techniques. The traits probed
by an interview include social poise, general appearance and the ability to express oneself
effectively.
6. Physical Examination:
A physical examination is usually placed towards the end of the selection process. It
gives the enterprise current information about the applicant’s physical health at the time of
selection or hiring.
7. Placement:
Once a new employee has been selected, he/ she is finally placed to perform the
specific job. Here, the employer needs to consider a few points before expecting work from

16
the new employee. It is well known to all of us, the first few days in a new position are
usually the hardest. A new comer should be properly introduced to his fellow workers, shown
the location of facilities available, informed of regulations, if any, and encouraged to ask any
needed information. Considerations and reasonable attention to these points prove a good
investment in personnel relations.
8. Orientation:
The employees selected should be made familiar with their enterprises’ objectives and
activities and with their jobs. Thus begins their orientation period to learn about their work
environment. Henceforth starts the training and development of newly selected employees.

17
1.2 SCOPE OF THE STUDY
The report deals with the recruitment and selection process in terms of theoretical
point of view and the practical use. The study will allow learning about the recruitment and
selection issues, importance, modern techniques and models used to make it more efficient.
The Study will help to learn the practical procedures followed by the IDBI Federal Life
Insurance Company.
Moreover the study will help to differentiate between the practice and the theories that
direct to realize how the organization can improve their recruitment and selection process.

18
1.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
The study on effectiveness of Recruitment and Selection process with special
reference to IDBI Federal Life Insurance in Erode.
SECONDARY OBJECTIVE
• To study the various sources of recruitment followed in IDBI Federal Life Insurance.
• To know the perception of employees regarding recruitment and selection.
• To know the job satisfaction levels of the employees of recruited.
• To know the recruitment policy followed by IDBI Federal Life Insurance.
To give suitable recommendation to streamline the hiring process.

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1.4 NEED FOR THE STUDY
• Recruitment and selection process is a very important for an organization because.
• Human Resource can be utilized for selecting the right candidate for right job.
• For the better understanding of the concept of recruitment and selection.
• To identify the recruitment needs.
• To provide feedback on recruitment and selection system of the company for further
improvement of the system.

20
1.5 LIMITATION OF THE STUDY
• Time was the biggest limitation.
• The project requires a thought study which requires a considerable amount of time.
• Some of the respondents might hesitate to fill the questionnaires.

21
1.6 CHAPTER SCHEME
CHAPTER – I
Introduction
Scope of the study
Objectives of the study
Need of the study
Limitation of the study
Review of Literature
Company Profile
Research & Methodology
CHAPTER – II
Data analysis & Interpretations
CHAPTER – III
Findings
Suggestions
Conclusion

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1.7 REVIEW OF LITERATURE
According to Korsten (2003) and Jones et al. (2006), Human Resource Management
theories emphasize on techniques of recruitment and selection and outline the benefits of
interviews, assessment and psychometric examinations as employee selection process. They
further stated that recruitment process may be internal or external or may also be conducted
online. Typically, this process is based on the levels of recruitment policies, job postings and
details, advertising, job application and interviewing process, assessment, decision making,
formal selection and training (Korsten 2003).(Source : Recruitment and Selection Process,
Published: 23, March 2015).
According to Alan Price (2007), in his work Human Resource Management in a
Business Context formally defines recruitment and selection as the process of retrieving and
attracting able applications for the purpose of employment. He states that the process of
recruitment is not a simple selection process, while it needs management decision making
and broad planning in order to appoint the most appropriate manpower. Their existing
competition among business enterprises for recruiting the most potential workers in on the
pathway towards creating innovations, with management decision making and employers
attempting to hire only the best applicants who would be the best fit for the corporate culture
and ethics specific to the company (Price 2007).(Source: recruitment and selection as the
process of retrieving and attracting)
According to Taher et al. (2000) carried out a study to critique the value-added and
non-value activities in a recruitment and selection process. The strategic manpower planning
of a company, training and development programme, performance appraisal, reward system
and industrial relations, was also appropriately outlined in the study. This study was based on
the fact that efficient HR planning is an essence of organization success, which flows
naturally into employee recruitment and selection (Taher et al. 2000). (Source: Activity in a
recruitment and selection process).
According to David A De Cenzo The recruitment needs are of three types which are
as follow First one is Planned Needs: These are the needs that arise from the changes in the
organization and retirement policy creating vacancy for new jobs..Second one is Anticipated
Needs: These are those movements in personal which an organization can predict by studying
trends both in external as well as internal environment Last one is Unexpected Needs These
needs arise due to various reasons like deaths, resignations, accidents, illness, relocation
etc.(source: The Recruitment Needs)
According to Edwin B Flippo, Recruitment is nothing but the process of searching the
candidates for employment and then stimulating them for jobs in the organization. It is the
activity that links the employees and the jobseekers. It is also defined as the process of
finding and attracting capable applicants for employment. It is the pool of applicants from
which the new employees are selected. It can also be defined as a process to discover sources
of manpower to meet the requirement of the staffing schedule and to employ effective

23
measures for attracting the manpower in adequate numbers in order to facilitate the effective
selection of an efficient working force(Source: Facilitate the effective selection).
According to Taylor, P. (1998 Seven), staff selection myths, This article outlines
seven commonly held misconceptions about recruitment And selection practices. Areas
discussed include the validity of various Recruitment and selection measures (e.g.,
interviewing, reference checks), the Conditions necessary to maximize the effectiveness of
these practices, and Common mistaken perceptions of the interview process. This article is
most Useful for readers interested in workforce development theory and research (source:.
Seven staff selection myths)
According to Burack (1985) recruitment sources are closely linked to the
organizational activities as performance of employees, employee turnover, employee
satisfaction, employee wishes and the commitment of the organization (Burack, 1980). These
recruitment and selection process should be done at each and every sector for fulfilling their
organizational goals (Nartey, 2012).
According to Michael D. White and Glipsy Escobar (2008) in the world and this
paper shows the importance of seven issues relating to recruitment, selection and training
practises in the organizations (M.N.Malhotra, 2014) (Terpstra.D, 1996).(Source: Recruitment
and selection practises were important in the police department)
According to Mohammed Nurul Absar (2012) says the importance of recruitment and
selection in his paper by considering both public and private manufacturing firms in
Bangladesh (M.M.Absar, 2012). Some of the research professionals and scholars say that
there is a close linkage between the recruitment selection employee satisfaction organization
performance and HR practises (Gorter, 1996). (Source: Recruitment and Selection- Employee
Satisfaction).
According to (Hays, 2004) Recruitment and Selection of public workers: An
international compendium of modern trends and practises say that the importance of using
technology in the recruitment and selection process for updating the organizational resources.
(Source: recruitment and selection process)
According to Ongori Henry and Temtime Z (2009) say that in their paper the
recruitment and selection practises of the small and medium enterprises and make them to
improve their HR practises (R.D.Omolo, 2012).
According to SHRM (Society for Human Resource Management) (Fomunjong, 2009)
says that 15% joined in the organizations are placing false resume (Gusdorf, 2008). Some of
the employers select the candidates with discrimination was not supposed to be done in the
organizations.
According to M.Smith (2001) Selection procedure also should be in application to the
modern techniques (M.Smith, 2001). The literature says that employers are doing the
traditional method of recruiting rather than the modern technologies (Schmidt, 1998).

24
According to Chris Piotrowski and Terry Armstrong(2006) say that in their article that
around all the organizations are using traditional recruitment sources and 30% of
organizations are screening candidates honestly (Armstrong, 2006)
According to Turner(2010),As a result of this there is increasing pressure on
organisations to ensure that they implement the best recruitment and selection method
applicable to their organisation or industry otherwise they risk becoming uncompetitive.
Turner (2010) back this up with this when he claims that the success of any organisation
depends on its ability to get the right people, in the right place at the right time
According to Taylor (2008) and Rees and French (2010) say that recruitment is the
process whereby an organisation collects applications for a position and generates a pool of
potential suitable employees, while selection involves using techniques or different methods
to assess the applicants and decide who is best suited to the available position, given
management goals and legal requirements.
According to Jones et al. (2006) suggested that examples of recruitment policies in the
healthcare, business or industrial sector may offer insights into the processes involved in
establishing recruitment policies and defining managerial objectives.
Successful recruitment techniques involve an incisive analysis of the job, the labour
market scenario/ conditions and interviews, and psychometric tests in order to find out the
potentialities of job seekers. Furthermore, small and medium sized enterprises lay their hands
on interviews and assessment with main concern related to job analysis, emotional
intelligence in inexperienced job seekers, and corporate social responsibility. Other
approaches to selection outlined by Jones et al. (2006) include several types of interviews,
role play, group discussions and group tasks, and so on.
Any management process revolves around recruitment and failure in recruitment may
lead to difficulties and unwanted barriers for any company, including untoward effects on its
profitability and inappropriate degrees of staffing or employee skills (Jones et al. 2006).
According to Decker & Cornelius (2011) say that compared to the traditional
recruiting sources the modern sources like referrals, casual applicants and direct approaches
will benefit at large (L.Barclay,1985) (Cappelli, 2001). Selection procedure also should be in
application to the modern technique.(Source: Selection Procedure).
According to (Cullen & Farrelly, 2001) Recruitment and selection methods have
changed and opinions have evolved over the course of time. It was once the policy to fill the
position as quickly as possible but as time has progressed organisations have realised that the
recruitment and selection methods they employee can have serious effects on how the
organisation operates, and thus the turnover the organisation makes. “Attracting and
recruiting the best employees is critical to success in all sectors and to all types of
organisations, regardless of size” .
According to Froschheiser (2008) has claimed that putting the wrong person into the
wrong position just to fill it can have dire consequences to your organisation, it may cause

25
poor employee morale, low productivity and lost opportunities- all of which will have a
negative impact on your organisations bottom line. As a result of this there is increasing
pressure on organisations to ensure that they implement the best recruitment and selection
method applicable to their organisation or industry otherwise they risk becoming
uncompetitive.(Source: Best Recruitments and Selection).
According to Walker (2009), Recruitment and selection is the process of attracting
individuals on a timely basis, in sufficient numbers and with appropriate qualifications. Thus
recruitment is the process of 2 identifying and attracting potential candidates from within and
outside an organization to begin evaluating them for future employment. Selection then
begins when the right calibre of candidates are identified. Selection is thus the process
through which organizations make decisions about who will or will not be allowed to join the
organization. The selection process varies from organization to organization, job to job, and
country to country. Some of the processes include screening applications and resumes, testing
and reviewing work samples, interviewing, checking references and background.
Organizations use these processes to increase the likelihood of hiring individuals who possess
the right skills and abilities to be successful at their jobs.
According to Michael et al., (1979) hold that effectiveness is easy to understand when
it is contrasted with efficiency. They claim that, effectiveness underscores the long-range
continuing nature of management meanwhile efficiency is considered a short term measure
on how well an organization uses its resources. Efficiency measures are used to see whether
organizations are meeting their short-term targets in which case, efficiency is considered a
short measure. It compares the input or cost directly with the output or benefits (cf. Etzioni,
1964). Measuring effectiveness and efficiency raises several thorny questions. When a
company has a goal that is short and concrete, it is comparatively easy to measure
effectiveness. For example, in cases of two companies, one whose goal is to construct a canal
linking the Red and Mediterranean seas and another whose goal is to build a tunnel linking
Britain and France, it is true that the former was effective while the latter was not. If the
organizational goal is a continuous one, measurement is already a problematic, (Etzioni,
1964). This is the motivation behind the purpose of studying the recruitment strategy of
SO.NA.RA that is likely influenced by several factors for instance, discrimination and
corruption.
According to Windolf (1986), the choice of a particular recruitment strategy by a firm
is specific to the resources available to the organization at hand and its environmental
dynamics. The labour market power of companies is determined in relation to local
competition and is defined as the degree of choice a company can exercise in deciding upon a
particular recruitment strategy. Windolf as well argues that the recruitment process usually
begins by defining the profile of the ideal candidate which implies the applicant who will best
fit the job. Sometimes the profile could be more or less clearly defined in terms of formal
education, sex or age. He points out that a narrow definition of the ideal candidate in terms of
age 30-35, male, native born or otherwise excludes many potential applicants (women or
older workers) who might be capable of doing the job. It is at these first stages of the
recruitment process that discrimination actually begins (ibid). Firms may advertise the

26
vacancy or they may restrict recruitment to the internal labour market (ILM) or to friends or
relatives of employees.
According to Boxall, Purcell and Wright, (2007) highlight five different questions an
organization has to answer to have an effective recruitment strategy in order to pursue its
survival and success. Those questions are “Whom to recruit?”, “Where to recruit?”, “What
recruitment sources to use?”, “When to recruit?” and “What message to communicate?” The
notion of effectiveness in this study relates to the manner by which SO.NA.RA implements
its employment policies. The essence is to understand whether such policies are applied
appropriately in the way they have been designed. What is of interest here is that if such
policies are contravened in the process of implementation it implies that the recruitment and
selection of candidates in the studied company is likely to be biased. Box all and Purcell
(2008) present the best fit and best practice approaches as a two way process to be used by
firms in order to connect their human resource strategy with their business strategy.
Efficiency on the other hand reveals whether the planned objectives of the policies bring forth
the anticipated returns to the business. The bone of contention here is to establish a matrix of
the policy objectives and the intended outcome.
According to James et al., (1979) state that effectiveness is measured in terms of
achieving and with the use of limited resources. They emphasize that; the concept of
efficiency must be added to that of effectiveness. Though these two concepts are related, they
however have some common differences. To understand the meaning of effective
performance it is realized that achieving desirable ends is necessary for effective performance
whereas the efficient use of resources is necessary but not sufficient for effectiveness.
According to Dessler (2003), there has been a significant amount of research
examining what skills and qualities employers value most in job applicants. Qualifications,
work experience and communication or interpersonal skills are the most frequently identified
qualities. Work experience and qualifications are measures of competence in relation to an
applicant’s technical skills, whereas the concept of communication skills appears to be a
generic term incorporating many different specific skills. Indeed, communication in the
workplace encompasses team skills; 3 leadership skills; an ability to negotiate with or
persuade others; problem solving skills; organizational skills; crisis management skills; and
presentation skills. Other communication competencies include cultural adaptation, social
competence and language proficiency. An applicant’s success with job seeking is related to
their ability to describe their experiences, skills and knowledge through a range of media.
Thus, effective communication is an essential competency required by all job applicants.
According to Kelly (2006), to manage a diverse workforce effectively, an
organization must hire and promote the most capable candidate for a job, while being mindful
of the necessity to build a workforce that is representative of the greater business community.
This may be achieved through using more appropriate and inclusive recruitment and selection
strategies. Despite a recent increase in published literature discussing recruitment and
selection practices, there has been little change in the types of methods used to recruit and
select employees.

27
According to Montgomery (1996) is on matching the capabilities and inclinations of
prospective candidates against the demands and rewards inherent in a given job. Jovanovic
(2004) said recruitment is a process of attracting a pool of high quality applicants so as to
select the best among them. For this reason, top performing companies devoted considerable
resources and energy to creating high quality selection systems. (Source: The focus of
recruitment and selection).
According to Huselid (1995), a human resource information system is a system
exploited to acquire, store, manipulate, analyse, retrieve, and distribute relevant information
regarding an organization's human resources
According to Jovanovic (2004), Recruitment and selection process are important
practices for human resource management, and are crucial in affecting organizational
success. Due to the fact that organizations are always fortified by information technology to
be more competitive, it is natural to also consider utilizing this technology to re-organize the
traditional recruitment and selection process through proper decision techniques, with that
both the effectiveness and the efficiency of the processes can be increased and the quality of
the recruitment and selection decision improved. (Source: Recruitment and selection process
are important practices).
According to (Mullins, 1999), recruitment practices and policies enable boards to find
the best candidate for their organization. The personnel function becomes especially
important when recruiting and selecting new administrators. A critical role for human
resource management is how to elicit positive reactions from candidates when discussing
administrative roles. When opportunities are presented to employees to move towards careers
in administration (i.e., tapping shoulders of potential candidates), often a negative reaction
occurs. People without administrative experiences have negative perceptions and views of the
role of the administrator. In attempts to attract and support individuals to the administrator’s
position it is necessary to identify what barriers prevent potential candidates from applying to
the pool. Job complexity and workload are perceived by employees as the two considerations
having had the greatest impact on the number of applicants for administrative positions.
Other factors include poor remuneration as it relates to demands and expectations of the job
and lack of resources and support structures in. Many highly qualified, competent, and
talented employees dismiss careers in administration because they do not want to sit in an
office all day. Until some alternative image is understood, or at least some support and
resources put in place, a problem of pre-screening and identification will not likely improve.
According to (Dessler, 2000), Recruitment and selection also has an important role to
play in ensuring worker performance and positive organizational outcomes. It is often
claimed that selection of workers occurs not just to replace departing employees or add to a
workforce but rather aims to put in place workers who can perform at a high level and
demonstrate commitment. lists the essence of these in the following; build a pool of
candidates for the job, have the applicants fill out application forms, utilize various selection
techniques to identify viable job candidates, send one or more viable job candidates to their
supervisor, have the candidate(s) go through selection interviews, and determine to which

28
candidate(s) an offer should be made. (Source: Recruitment and Selection-Positive
Outcomes)
According to Odiorne, (1984) one result of effective recruitment and selection is
reduced labour turnover and good employee morale. Recruiting ineffectively is costly, since
poor recruits may perform badly and/or leave their employment, thus requiring further
recruitment. In a cross national study of recruitment practices, suggests that, in reality,
recruitment practices involve little or no attempt to validate practices. Personnel managers
tend to rely on feedback from line managers and probationary periods and disciplinary
procedures to weed out mistakes. Firms with high quit rates live with them and tend to build
them into their recruitment practices and they do not analyze the constitution of their labour
turnover.

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1.8 COMPANY PROFILE
IDBI FEDERAL LIFE INSURANCE
IDBI Federal Life Insurance is one of India’s growing life insurance companies and
offers a diverse range of wealth management, protection and retirement solutions to
individual and corporate customers.
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier
development and commercial bank, Federal Bank, one of India’s leading private sector banks
and Ageas, a multinational insurance giant based out of Europe. Having commenced
operations in 2008, IDBI Federal was able to achieve breakeven within just 5 years; the
Company’s passion for innovation and growth helped it achieve this feat.
Through a nationwide network of 2, 964 branches of IDBI Bank and Federal Bank,
and a sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved
presence across the length and breadth of the country. As on March 31, 2015, the company
has issued nearly 7.88 lakh policies with a sum assured of over Rs. 41,856 crore. IDBI
Federal Life Insurance has total assets under management of 4,087 crore and a robust capital
base of over 800 crores, as on March 31, 2015.
About the sponsors of IDBI Federal Life Insurance Co Ltd IDBI Bank Ltd.
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial
development bank. It came into being as on July 01, 1964 to support India’s industrial
backbone.
Today, it is amongst India’s foremost commercial banks, with a wide range of
innovative products and services, serving retail and corporate customers in all corners of the
country from 1926 branches and 3793 ATMs. The Bank offers its customers an extensive
range of diversified services including project finance, term lending, working capital
facilities, lease finance, venture capital, loan syndication, corporate advisory services and
legal and technical advisory services to its corporate clients as well as mortgages and
personal loans to its retail clients.
IDBI Bank is the youngest, new generation, public sector universal bank that rides on
a cutting edge core banking Information Technology platform. This enables the Bank to offer
personalized banking and financial solutions to its clients. The Bank had an aggregate

30
Balance sheet size of Rs.3,74,372 crore and total business of Rs.4,81,613 crore as on March
31, 2016.
As part of its development activities, IDBI Bank has been instrumental in sponsoring
the development of key institutions involved in India’s financial sector – National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock
Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).
FEDERAL BANK
Federal Bank Limited is a major Indian commercial bank in the private sector
headquartered at Aluva, Kerala having more than thousand branches. It has a strong network
of over 1,252 branches and 1,680 ATMs spread across India. The Bank is a pioneer among
traditional banks in India in the area of using technology to leverage its operations and was
among the first banks in India to computerize all its branches. The Bank offer its customers, a
variety of services such as Internet banking, Mobile banking, on-line bill payment, online fee
collection, depository services, Cash Management Services, merchant banking services,
insurance, mutual fund products and many more as part of its strategy to position itself as a
financial super market and to enhance customer convenience.
The history of Federal Bank dates back to the pre-independence era. The Bank was
incorporated on April 23, 1931 as the Travancore Federal Bank Limited, Nedumpuram under
the Travancore Companies Regulation, 1916. Late K.P. Hormis, the visionary banker and
founder took up the reigns in 1945 and built the bank a nationwide institution. The Bank's
name was changed to The Federal Bank Limited on December 2, 1949. The Bank was
licensed under the Banking Regulation Act, 1949, on July 11, 1959 and became a scheduled
commercial bank under the Second Schedule of Reserve Bank of India Act, 1934 on July 20,
1970. Today the bank is present in 25 States, Delhi NCT and 4 Union Territories and the
bank is listed in BSE, NSE and London Stock Exchange.
AGEAS
Ageas is an international insurance group with a heritage spanning 190 years. Ranked
among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its
business activities in Europe and Asia, which together make up the largest share of the global
insurance market.

31
These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries and
partnerships with strong financial institutions and key distributors around the world. Ageas
operates successful partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey,
China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and the UK.
Ageas is the market leader in Belgium for individual life and employee benefits, as well as a
leading Non-Life player through AG Insurance.
In the UK, Ageas is the sixth largest Non-Life insurer with a number 3 position in
cars insured and has a strong presence in the over 50’s market. Ageas employs more than
13,000 people in the consolidated entities and over 30,000 in the non-consolidated
partnerships, and has annual inflows of more than EUR 23 billion.
VISION, MISSION AND VALUES
Vision
To be the leading provider of wealth management, protection and retirement solutions
that meets the needs of our customers and adds value to their lives.
Mission
To continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery while striving to
interact with our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.
Values
• Transparency: Crystal Clear communication to our partners and stakeholders.
• Value to Customers: A product and service offering in which customers perceive
value.
• Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims.
• Customer-friendly: Advice and support in working with customers and partners.
• Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large.
HISTORY OF THE ORGANIZATION
In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis
Insurance International NV signed a MoU to start a life insurance company in India. The
company received its license from Insurance Regulatory and Development Authority of India
(IRDAI) in December 2007.

32
IDBI Fortis Life Insurance Co. Ltd. officially began its operations in March 2008. In
August 2008, the company collected the premium of over Rs.100 crore within a record time
of five months, thus becoming the fastest growing new life insurance company in the private
sector.
India-Sri Lanka ODI series that took place in October 2009, found a title sponsor in
insurance major IDBI Fortis. The company’s AUM crossed the Rs. 1,000 crore mark for the
first time in March 2010.
In August 2010, the company was rechristened as IDBI Federal Life Insurance
Company. The organization has always taken the road less travelled. In 2012-13, it declared
its maiden profits in record 5 years, thus was one of the fastest to do so in the industry. It yet
again clocked Rs. 80 crore profits for the financial year 2013-14 and has maintained its
profitable trajectory from thereon.
PRODUCTS
IDBI Federal offers a suite of products that addresses various life-stage needs of the
customers. The trademarked names of the products help define the benefit and the value they
bring to the customer.
S.No PRODUCT NAME DESCRIPTION
1 CHILDSURANCE
Childsurance offers solutions to ensure funding the life
insured’s child’s future needs like higher education,
marriage, vocational training, etc.
2 INCOMESURANCE
Incomesurance provides guaranteed regular income along
with a life cover.
3 LIFESURANCE
Lifesurance offers an array of participating endowment
plans, designed to provide long-term savings along with
life cover.
4 LOANSURANCE
Loansurance is a cost-effective insurance plan that covers
the life insured’s outstanding debt.
5 RETIRESURANCE
Retiresurance offers plans that help the life insured build a
corpus that lasts throughout his retired life to make them
the best years of his life.
6 HEALTHSURANCE
Healthsurance ensures that the life insured never lack the
funds to obtain quality treatment in case of medical
emergencies.
7 TERMSURANCE
Termsurance offers financial protection to the family of
the life insured in case of the unfortunate event of the
death of the life insured.

33
TAX BENEFITS
Life insurance and retirement plans are one of the most effective ways of saving taxes.
A summary of these benefits is provided below:
• Life Insurance Plans and certain types of annuity plans are eligible for deduction under
Section 80C.
• Specified Pension Plans are eligible for a deduction under Section 80CCC.
• The contributions/payments made towards the life insurance plans and annuity/pension
plans are eligible for an overall tax deduction of Rs.1, 50,000.
• Health Insurance Plans/Riders are separately eligible for deduction under Sec 80D.
• The proceeds or withdrawals from Life Insurance Policies are exempt under Sec 10
(10D), subject to norms prescribed in that section.
AWARDS
• IDBI Federal was recognized as the ‘Best Insurance Company in the Private Sector’
for the year 2013 -2014 at the Lokmat Banking, Financial Services & Insurance
Award.
• IDBI Federal’s Corporate Annual event, Corporate Brochure and In-house magazine
received one silver each at the Global Public Relations Council of India Conclave
2015.
• IDBI Federal's thematic Annual Report for FY 2013-14 was conferred with the
Corporate Collateral Gold Award at the Global Public Relations Council of India
Conclave 2015.
• IDBI Federal's thematic Annual Report for FY 2012-13 was conferred with the
Corporate Collateral Award of Appreciation at the Global Public Relations Council of
India Conclave 2014.
• IDBI Federal was conferred with a special recognition at the Public Relations Council
of India Awards 2014 for their PR efforts towards their maiden profits story.
• IDBI Federal was recognised as the ‘Best Life Insurance Company’ in the private
sector at the IPE Banking, Financial services and Insurance Awards 2013.
• IDBI Fortis won a bronze Dragon at 'PMAA 2009'.

35
COMPETITORS OF IDBI FEDERAL LIFE INSURANCE
S. NO. NAME OF THE COMPETITORS
1. Aegon Life Insurance Company
2. Aviva India
3. Bajaj Allianz Life Insurance
4. Birla Sun Life Insurance Company Limited
5. Exide Life Insurance
6. HDFC Standard Life Insurance
7. ICICI Prudential Life Insurance
8. India First Life Insurance Company
9. Kotak Life Insurance
10. Life Insurance Corporation Of India
11. Max Life Insurance
12. Peerless Group
13. PNB MetLife India Insurance Company
14. Reliance Life Insurance
15. Sahara India Pariwar
16. SBI Life Insurance Company
17. TATA AIG

36
1.9 RESEARCH & METHODOLOGY
INTRODUCTION
This chapter deals with the methodology adopted in conducting the study. The chapter
is organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), and analysis of data.
RESEARCH METHODOLOGY
Research is common Parlance refer to a search for knowledge, one can also define
research as a scientific and systematic search for pertinent information on a scientific topic.
Research is done with the help of study, experiment, observation, analysis, comparison and
reasoning. Research is in fact ubiquitous.
3.1 RESEARCH DESIGN
The research design is purely and simply the frame work or plan for a study that grids
the collection or analysis of data research design has been considered a highly specialized
tool for success of a research programmed. The Study aim at an original facts regarding to
personnel performance of an organization. Research is a plan, structure and strategy of
investigation conceived so as to obtain answer to research question and control variance
DESCRIPTIVE STUDY
A statistical study to identify patterns or trends in a situation, but not the causal
linkages among its different elements. Descriptive studies (such as a cross-sectional study)
help in generating hypothesis on which further research may be based.
The research was based on assessing recruitment and selection practices of IDBI
Federal Life Insurance. The design was a descriptive study which used both quantitative and
qualitative tools to recruitment and selection adopted by IDBI Federal Life Insurance. The
study was based on the use of questionnaires. These approaches were used because they were
satisfactory tools for collecting data for the sample population to investigate the topic under
study.
SOURCES OF DATA
Both primary and secondary source of data were used in conducting the research.
PRIMARY SOURCES
In getting primary data there are several approaches available to gathering data. In
order to collect reliable and valid information. The primary data is collected by using primary
methods such questionnaires, interviews, observations etc. For this study questionnaires are
used to collect primary data from the employees.

37
QUESTIONNAIRES
The purpose of using questionnaire was to identify and assess the effectiveness of the
recruitment and selection practices of the IDBI Federal Life Insurance. A set of questionnaire
was prepared with open – ended as well as close ended questions.
SECONDARY SOURCES
The study also made use of secondary data in collecting information. The sources of
the secondary data include books, internet search, articles, and journals among others. This
helped to identify how others have defined and measured key concepts, the data sources that
of others used and this helped to discover how this research project is related to other studies.
POPULATION
IBDI Federal Life Insurance, Erode is selected for the study. The population of the
study consisted of employees from the various departments of the insurance company and
this included human resource department, marketing and so forth. The total population from
the selected branches is made up of 138 employees.
SAMPLE SIZE
A sample size of 138 is chosen from the selected branches for the study. This was
based on the staff strength of the various departments and to ensure that the sampled was
representative enough to draw conclusion.
3.3 SAMPLING DESIGN
The census sampling technique is used to select respondents from the various
departments with the exception of the Human Resource Department. This is basically
because the population will have an equal chance of being selected. Significantly, the
purposive sampling technique, which is a non-probability sampling technique, was used to
select respondents who deal directly with recruitment and selection from the Human
Resource Department. This was because the researcher wanted to deal with only typical cases
based on the objectives of the study.
CENSUS SAMPLING TECHNIQUE
A census is a study of every unit, everyone or everything, in a population. It is known
as a complete enumeration, which means a complete count.
DATA COLLECTION INSTRUMENT
The researcher used questionnaire. The researcher prepared the questionnaires to be
responded by the sampled employees of the organization. The questions were designed to
make the purpose of the study successful after the results have been ascertained. This
instrument gave expected information about the recruitment and selection procedures or
practices.

38
3.4 TOOLS FOR DATA ANALYSIS
Statistical tools applied in the present study are bar diagrams, Pie diagrams, Lines,
Histograms, cones, cylinders etc., and Using simple statistical tools like
• Percentage Analysis
• Chi-square test
• ANOVA Table
HYPOTHESIS TESTING
The Chi-Square test is one of the simplest and widely used non-parametric tests in
statistical work. The Symbol is Greek letter Chi. It was used by the Karl Pearson in the year
1990. The Quantity Chi-Square describes the magnitude of the discrepancy between theory
and observation.
Chi Square =
Where,

40
2.1 DATA ANALYSIS & INTERPRETATION
TABLE: 2.1.1
RESPONDENTS BY THEIR GENDER
S. NO. GENDER RESPONDENTS PERCENTAGE
1 MALE 78 57%
2 FEMALE 60 43%
TOTAL 138 100%
CHART: 2.1.1
INTERPRETATION
The above table reveals that the 57% of respondents are male and 43% of respondents
are female in IDBI Federal Life Insurance.
57%
43%
RESPONDENTS BY THE GENDER
MALE
FEMALE

41
TABLE: 2.1.2
RESPONDENTS BY THEIR AGE
S. NO OPTION RESPONDENTS PERCENTAGE
1 18-22 15 10.9%
2 23-27 108 72.8%
3 28-32 15 10.9%
4 ABOVE 32 0 0%
TOTAL 138 100%
CHART: 2.1.2
INTERPRETATION
With reference to the analysis of the personal data, Table & Chart No: 2.1.2 shows
that most (78.2%) of the respondents of the study are in the age category between 23-27
Years. The other half(10.9%) of the respondents are in the age category between 18-22, the
rest of the respondents about(10.9%) are of the age category between 28-32 years and the
rest about (0%) of them are in the age category between 32 & above.
10.9%
78.2%
10.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
RESPONDENTSBY THEIR AGE
18-22 23-27 28-32 ABOVE 32
0%

42
TABLE: 2.1.3
DESIGNATION OF THE RESPONDENTS
S. NO. OPTION RESPONDENTS PERCENTAGE
1 AL 63 45.7%
2 SAL 66 47.8%
3 GAL 9 6.5%
4 OTHERS 0 0%
TOTAL 138 100%
CHART: 2.1.3
INTERPRETATION
Table and Chart No. 2.1.3 give the designation of the respondents. It is inferred that
most (47.8%) of the respondents came under the Senior Agency Leader (SAL) category,
where as second (45.7%) of the respondents come under the Agency Leader (AL) category,
(18.5) of the respondents come under the Manager Category, (6.5%) of the respondents come
under the Group Agency Leader (GAL) category, (0%) of the respondents come under the
Other Category.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
AL
SAL
GAL
OTHERS
45.7%
47.8%
6.5%
0.0%
DESIGNATION OF THE RESPONDENTS
AL
SAL
GAL
OTHERS

43
TABLE: 2.1.4
EUDCATIONAL QUALIFICATION OF THE RESPONDENTS
S. NO. OPTION RESPONDENTS PERCENTAGES
1 DIPLAMO 18 13.0%
2 UG 96 69.6%
3 PG 24 17.4%
4 OTHERS 0 0%
138 100%
CHART: 2.1.4
INTERPRETATION
With reference to the educational qualification of the respondents, Table and Chart
No: 2.1.4 shows that almost all the respondents are educated up to the level of Under
Graduate (69.6%), (17.4%) of respondents are Post graduate ,(13.0%) of respondents are
Diploma Where as only a least percent of the respondents (0%) are found a in the Other
category.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
DIPLOMA UG PG OTHERS
13.0%
69.6%
17.4%
0.0%
EDUCATIONAL QUALIFICATIONAL OF THE
RESPONDENTS
DIPLOMA
UG
PG
OTHERS

44
TABLE: 4.1.5
EXPERIENCE OF THE RESPONDENTS
1 Less than 1 Year 39 28.3%
2 1-5 Years 99 71.7%
3 6-10 Years 0 0%
4 Above 10 Years 0 0%
TOTAL 138 100%
CHART: 4.1.5
INTERPRETATION
The above table shows that the majority of 71.1% of respondents have their
experience as 1-5 years, 28.3% of respondents have their experience as below 1 year, 0% of
respondents have their experience as 6-10 years & above 10 years.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Less than 1
Year
1-5 Years 6-10 Years Above 10
Years
28.3%
71.1%
0.0% 0.0%
EXPERIENCE OF THE RESPONDENTS
Less than 1 Year
1-5 Years
6-10 Years
Above 10 Years

45
TABLE: 2.1.6
FORM OF INTERVIEW
1 Personal Interview 108 78.2%
2 Telephone Interview 24 17.4%
3 Video Conferencing 3 2.2%
4 Others 3 2.2%
TOTAL 138 100%
CHART: 2.1.6
INTERPRETATION
The above table reveals that the majority of 78.2% of respondents are personal
interview, 17.4% of respondents are Telephone interview, 2.2% of respondents are Video
Conferencing and also Other forms of interviews in IDBI Federal Life Insurance.
78.2%
17.4%
2.2% 2.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Personal
Interview
Telephone
Interview
Video
Conferencing
Others
FORM OF INTERVIEW
Personal Interview
Telephone Interview
Video Conferencing
Others

46
TABLE: 2.1.7
RECRUITING POSITION
1 Advisor 69 50.0%
2 Agency Leader 51 37.0%
3 Senior Agency Leader 12 8.7%
4 Group Agency Leader 6 4.3%
TOTAL 138 100%
CHART: 2.1.7
INTERPRETATION
The above table reveals that the majority of 50.0% of Advisor Position to recruiting
more candidates, 37.0% of respondents Agency Leader Position to recruiting, 8.7% of
respondents Senior Agency Leader Position to recruiting and 4.50% of respondents Group
Agency Leader Position to recruiting.
50.0%
37.0%
8.7%
4.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Advisor Agency Leader Senior Agency
Leader
Group Agency
Leader
RECRUITING POSITION
Advisor
Agency Leader
Senior Agency Leader
Group Agency Leader

47
TABLE: 2.1.8
KIND OF PERSONEL INTERVIEW
1 One – to – One Interview 105 76.1
2 Panel Interview 30 21.7
3 Sequential 3 2.2
TOTAL 138 100%
CHART: 2.1.8
INTERPRETATION
The above table reveals that the majority of 76.1% of respondents are One-to-one
Interview, 21.7% of respondents are Panel Interview, 2.2% of respondents are Sequential
Interview.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
One – to – One
Interview
Panel Interview Sequential
76.1%
21.7%
2.2%
KIND OF PERSONAL INTERVIEW
PERCENTAGE

48
TABLE: 2.1.9
ADOPT FOR SOURCE THE CANDIDATE
1 Candidate referral 57 41.3%
2 Advertising 33 23.9%
3 Job portal 21 15.2%
4 All of the above 27 19.6%
TOTAL 138 100%
CHART: 2.1.9
INTERPRETATION
The above table reveals that the majority of 41.3% of respondents are Candidate
referral, 23.9% of respondents are Advertising, 15.2% of respondents are Job Portal and
19.6% respondents are other category.
41.3%
23.9%
15.2%
19.6%
ADOPT FOR SOURCE THE CANDIDATE
Candidate referral
Advertising
Job portal
All of the above

49
TABLE: 2.1.10
RESPONDS TO APPLICATION
1 Less than 5 Days 69 50.0%
2 5-10 Days 27 19.6%
3 11-15 Days 42 30.4%
4 15-20 Days 0 0%
5 More than 20 Days 0 0%
TOTAL 138 100%
CHART: 2.1.10
RESPONDS TO APPLICATION
INTERPRETATION
The above table reveals that the majority of 30.4% of respondents are Less than 5
Days, 19.6 % of respondents are 5-10 days, 30.4% of respondents are 11-15 Days, 0% of
respondents are 15-20 days and 0 % respondents are more than 20 days.
50.0%
19.6%
30.4% 0.0%
0.0%
Less than 5 Days
5-10 Days
11-15 Days
15-20 Days
More than 20 Days

50
TABLE: 2.1.11
SOURCES OF RECRUITMENT & SELECTION
1 Internal Source 27 19.6%
2 External Source 63 45.6%
3 All the above 33 23.9%
4 None of these 15 10.9%
TOTAL 138 100%
CHART: 2.1.11
INTERPRETATION
The above table reveals that the majority of 45.6% of respondents are External
Source, 19.6% of respondents are External Source a, 23.6% of respondents are both category
and 10.9% of respondents are other category.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Internal
Source
External
Source
All the above None of these
19.6%
45.6%
23.9%
10.9%
SOURCES OF RECRUITMENT & SELECTION
PERCENTAGE

51
TABLE: 2.1.12
INTERNAL SOURCING
S. NO. OPTION RESPONDANTS PERCENTAGE
1 Present Permanent Employees 78 56.5%
2 Present Temporary Employees 51 37.0%
3 Retired Employees 9 6.5%
4 Disabled employees 0 0%
TOTAL 138 100%
CHART: 2.1.12
INTERPRETATION
The above table reveals that the majority of 56.5% of respondents are Present
Permanent Employees, 37.0% of respondents are Present Temporary Employees, 6.5% of
Retired Employees and 0% of respondents are Disabled Employees.
56.5%37.0%
6.5%
0.0%
INTERNAL SOURCING
Present Permanent Employees Present Temporary Employees
Retired Employees Disabled employees

52
TABLE: 2.1.13
EXTERNAL SOURCING
1 Campus Interview 69 50.0%
2 Placement Agencies 24 17.4%
3 Private Employment Agencies 33 23.9%
4 Public Employment Agencies 12 8.7%
5 Others 0 0%
TOTAL 138 100%
CHART: 2.1.13
INTERPRETATION
The above table reveals that the majority of 50.0% of respondents are Campus
Interview, 23.9% of respondents are Private Employment agencies, 17.4% of respondents are
Placement agencies, 8.7% of respondents are Public Employment agencies, 0 % of
respondents are Public Employment Agencies.
0.0%
20.0%
40.0%
60.0%
Campus
Interview
Placement
Agencies
Private
Employment
Agencies
Public
Employment
Agencies
Others
50.0%
17.4%
23.9%
8.7%
0.0%
EXTERNAL SOURCING
PERCENTAGE

53
TABLE: 2.1.14
FORM OF RECRUITMENT
1 Centralized 99 71.7%
2 Decentralized 39 28.3%
TOTAL 138 100%
CHART: 2.1.14
INTERPRETATION
The above table reveals that the majority of 71.7% of respondents are centralized,
28.3% of respondents are decentralized in form of recruitment.
71.7%
28.3%
FORM OF RECRUITMENT
Centralized
Decentralized

54
TABLE: 2.1.15
SELECTIN PROCEDURE AND METHODS
S. NO. OPTION RESPONDENT PERCENTAGE
1 Psychometric Test 27 19.6%
3 Written Test 48 34.8%
4 Practical Test 3 2.2%
5 All of the above 21 15.1%
TOTAL 138 100%
CHART: 2.1.15
INTERPRETATION
The above table reveals that the majority of 34.8% of respondents are Written Test,
28.3% of respondents are Personal Interview, 19.6% of respondents are Psychometric Test,
15.1% of respondents are the entire category and 2.2% of respondents are Practical Test.
19.6%
28.3%34.8%
2.2%
15.1%
SELECTION PROCEDURE & METHODS
Psychometric Test
Personal Interview
Written Test
Practical Test
All of the above

55
TABLE: 2.1.16
TEST TAKE A LONG TIME PERIOD TO CONDUCT
S. NO. OPTION RESPONDENT PERCENTAGE
1 Aptitude Test 36 26.1%
3 Written Test 21 15.2%
4 Practical Test 21 15.2%
TOTAL 138 100%
CHART: 2.1.16
INTERPRETATION
The above table reveals that the majority of 43.5% of respondents are Personal
Interview, 26.1% of respondents are Aptitude Test, 15.2% of respondents are Written Test &
15.2% of respondents are Practical Test.
26.1%
43.5%
15.2% 15.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Aptitude Test Personal
Interview
Written Test Practical Test
TEST TAKE A LONG TIME PERIOD TO CONDUCT
Aptitude Test
Personal Interview
Written Test
Practical Test

56
TABLE: 2.1.17
THE ORGANIZATION LOOKS FOR IN A CANDIDATE
S. NO. OPTIONS
RESPONDENTS PERCENTAGE
Highly
Satisfied Satisfied Neutral Dissatisfied
Highly
Dissatisfied
1 Knowledge 19.1% 31.8% 15.9% 12.8% 20.4%
2 Past Experience 12.8% 9.6% 15.9% 28.6% 33.1%
3 Optimistic Nature 15.9% 19.2% 17.2% 15.9% 31.8%
4 Discipline 16.6% 31.8% 28.7% 17.2% 5.7%
5 Team Work Ability 31.9% 6.4% 12.7% 15.9% 33.1%
6 Others 16.6% 20.4% 9.5% 28.7% 24.8%
TOTAL 100 100 100 100 100
CHART: 2.1.17
THE ORGANIZATION LOOKS FOR IN A CANDIDATE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Knowledge Past
Experience
Optimistic
Nature
Discipline Team Work
Ability
Others
19.1% 12.8% 15.9% 16.6% 31.9% 16.6%
31.8%
9.6%
19.2%
31.8%
6.4%
20.4%
15.9%
15.9%
17.2%
28.7%
12.7%
9.5%
12.8%
28.6% 15.9%
17.2%
15.9%
28.7%
20.4% 33.1% 31.8% 5.7% 33.1% 24.8%
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied

57
TABLE: 2.1.18
STAISFIED WITH ROUND OF INTERVIEWS
1 Highly Satisfied 36 26.1%
2 Satisfied 84 60.9%
3 Neutral 18 13.0%
4 Dissatisfied 0 0%
5 Highly Dissatisfied 0 0%
TOTAL 138 100%
CHART: 2.1.18
INTERPRETATION
The above table reveals that the majority of 60.9% of respondents are satisfied, 26.1%
of respondents are Highly Satisfied, 13.0% of respondents are Neutral, 0% of respondents are
dissatisfied and 0% of respondents are Highly Dissatisfied with round of interview conducted
in IDBI Federal Life Insurance.
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
26.1%
60.9%
13.0%
0.0%
0.0%
SATISFIED WITH ROUND OF INTERVIEWS
Series 1

58
TABLE: 2.1.19
RECURITMENT AND SELECTION OF THE EMPLOYER
1 Highly Satisfied 48 34.8%
2 Satisfied 63 45.6%
3 Neutral 27 19.6%
4 Dissatisfied 0 0%
5 Highly Dissatisfied 0 0%
TOTAL 138 100%
CHART: 2.1.19
INTERPRETATION
The above table reveals that the majority of 45.6% of respondents are Satisfied,
34.8% of respondents are Highly Satisfied, 19.1% of respondents are Neutral, 0% of
respondents are Dissatisfied and 0% of respondents are Highly Dissatisfied.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Highly
Satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
34.8%
45.6%
19.6%
0.0% 0.0%
RECURITMENT AND SELECTION OF THE EMPLOYER
PERCENTAGE

59
TABLE: 2.1.20
ORGANIZATION PLAN THE RECRUITMENT POLICY
1 Yes 126 91.3%
2 No 12 8.7%
TOTAL 138 100%
CHART: 2.1.20
INTERPRETATION
The above table reveals that the majority of 91.3% of respondents are said yes and
8.7% of respondents are said No in IDBI Federal Life Insurance.
91.3%
8.7%
ORGANIZATION PLAN THE RECRUITMENT POLICY
YES
NO

60
TABLE: 2.1.21
ADVERTISING VACANCIES FOR EMPLOYEMENT
1 Yes 96 69.6%
2 No 42 30.4%
TOTAL 138 100%
CHART: 2.1.21
INTERPRETATION
The above table reveals that the majority of 69.6% of respondents are said yes and
30.4% of respondents are said No in IDBI Federal Life Insurance.
69.6%
30.4%
ADVERTISING VACANCIES FOR
EMPLOYEMENT
YES
NO

61
TABLE: 2.1.22
REJECTED CANDIDATES INFORMED
1 E-mail 57 41.3%
2 Phone 45 32.6%
3 Not Informed 36 26.1%
TOTAL 138 100%
CHART: 2.1.22
INTERPRETATION
The above table reveals that the majority of 41.3% of respondents are E-mail, 32.6%
of respondents are informed by Phone, and 26.1% of respondents are informed in Not
Informed.
41.3%
32.6%
26.1%
REJECTED CANDIDATES INFORMED
E-mail
Phone
Not Informed

62
TABLE: 2.1.23
INNOVATIVE TECHNIQUES
1 Strongly Agree 51 37.0%
2 Agree 42 30.4%
3 Neither Agree 39 28.3%
4 Disagree 6 4.3%
5 Strongly Disagree 0 0%
TOTAL 138 100%
CHART: 2.1.23
INTERPRETATION
The above table reveals that the majority of 37.0% of respondents are Strongly Agree,
30.4% of respondents are informed by Agree, 28.3% of respondents are Neither Agree, 4.3%
of respondents are informed by Disagree and 0% of respondents are Strongly Disagree.
0.0%
10.0%
20.0%
30.0%
40.0%
Strongly
Agree
Agree Neither
Agree
Disagree Strongly
Disagree
37.0%
30.4%
28.3%
4.3% 0.0%
INNOVATIVE TECHNIQUES
Strongly Agree Agree Neither Agree Disagree Strongly Disagree

63
TABLE: 2.1.24
ORGANIZATION CONDUCTING TEST FOR SELECTION
1 Aptitude 30 21.8%
2 Intelligence 21 15.2%
3 Personality 54 39.1%
4 Psychological 27 19.6%
5 Other 6 4.3%
TOTAL 138 100%
CHART: 2.1.24
INTERPRETATION
The above table reveals that the majority of 39.1% of respondents are Personality,
21.8% of respondents are Aptitude, 19.6% of respondents are Psychological, 15.2% of
respondents are Intelligence and 4.3% of respondents are other category.
0.0%
10.0%
20.0%
30.0%
40.0%
Aptitude Intelligence Personality Psychological Other
21.8%
15.2%
39.1%
19.6%
4.3%
ORGANIZATION CONDUCTING TEST FOR SELECTION
Percentage

64
TABLE: 2.1.25
SELECTION POLICY OF THE ORGANIZATION
1 Good 108 78.3%
2 Average 27 19.6%
3 Bad 3 2.1
4 No Comments 0 0%
TOTAL 138 100%
CHART: 2.1.25
INTERPRETATION
The above table reveals that the majority of 78.3% of respondents are good, 19.6% of
respondents are Average, 2.1% of respondents are bad, and 0% of respondents are No
Comments category.
78.3%
19.6%
2.1%
0.0%
Sales
Good
Average
Bad
No Comments

65
STATISTICAL TOOL
1. CHI SQUARE
AGE vs GENDER TO THE IDBI FEDERAL LIFE INSURANCE
Null Hypothesis (Ho)
There is no significant relationship between age and satisfied with round of interview
conducted in IDBI Federal Life Insurance
Alternative Hypothesis (H1)
There is significant relationship between age and satisfied with round of interview
conducted in IDBI Federal Life Insurance
Age of the Respondent * Gender of the Respondent

66
INFERENCE:
From the above table it can be inferred that Chi square value is 125.348 and value of p
is 0.000. Since value of p is less than 0.00, Null hypothesis is rejected at 1% level of
significance.
RESULT:
Thus, there is a significant relationship between age and the satisfied with the round
of interviews in IDBI Federal Life Insurance.

67
2. ANOVA
DESIGNATION AND SELECTION PROCEDURE AND METHOD FOLLOWED BY
THE IDBI FEDERAL LIFE INSURANCE
NULL HYPOTHESIS (H0)
There is no relationship between Designation and Selection Procedure and Method in
IDBI Federal Life Insurance.
ALTERNATIVE HYPOTHESIS (H1)
There is relationship between Designation and Selection Procedure and Method in
IDBI Federal Life Insurance.

68
INFERENCE:
The level of satisfaction about their selection procedure and method is significant
among their designation F=3.801 and value of p is 0.000. Since value of p is less than 0.01,
NULL HYPOTHESIS is rejected at 1% level of significance. Alternative hypothesis is
accepted.
RESULT:
Thus, The Selection Procedure and Method is significant relationship among their
Designation.

70
3.1 FINDINGS
57.0% of employees are male in IDBI Federal Life Insurance Company Ltd, Erode.
78.2% of employees are in the age category between 23-27 Years.
47.8% of employees came under the Senior Agency Leader.
69.6% of employees are educated up to the level of Under Graduate.
71.1% of employees have their experience as 1-5 years.
78.2% of employees are form personal interview.
50.0% of employees are Advisor Position to recruiting more candidates.
76.1% of employees are conducting One-to-one Interview.
41.3% of employees are Candidate referral.
30.4% of employees are responding to application within the 5 Days.
45.6% of employees are External Source of recruitment & selection.
56.5% of employees are Present Permanent Employees of internal sourcing.
50.0% of employees are Campus Interview of external sourcing.
71.7% of employees are centralized in form of recruitment.
34.8% of employees are Written Test in Selection procedure & method.
43.5% of employees are Personal Interview is take a long time.
31.8% of employees are satisfied the organization looks for in knowledge.
33.1% of employees are highly satisfied the organization looks for in Past Experience.
31.8% of employees are highly dissatisfied the organization looks for in Optimistic
Nature.
31.8% of employees are satisfied the organization looks for in Discipline.
33.1% of employees are satisfied the organization looks for in Team Work Ability.
28.7% of employees are dissatisfied the organization looks for in other category.
60.9% of employees are satisfied with round of interview.
45.6% of employees are satisfied in recruitment and selection.
91.3% of employees are said yes for the organization plan the recruitment policy.
69.6% of employees are said yes for advertising vacancies for employment.
41.3% of employees are E-mail via informed to rejected candidates.
37.0% of employees are Strongly Agree for innovative techniques.
39.1% of employees are personality for the organization conducting test for selection.
78.3% of employees are good.

71
5.2 SUGGESTION
The recruitment and selection process in IDBI Federal Life insurance is good. The
following suggestions are made to develop the recruitment and selection process is IDBI
Federal Life Insurance.
➢ Candidates applying for the jobs in IDBI Federal Life Insurance came to know from
their friends. If the company advertise about the opening in the company through
other mediums than the manpower can be increased in IDBI Federal Life Insurance.
➢ While giving the interview the candidates felt relaxed and confident. The company
can make the interview process little complex to test the real ability of the employee.
➢ The candidate called for interview should be allotted timings and it should not overlap
with each other.
➢ The recruitment and selection procedure should not to lengthy and time consuming.
➢ If the manpower requirement is high and the recruitment team of the HR department
alone cannot satisfy it, then help from the placement agencies is needed.

72
3.3 CONCLUSION
This presents the summary of the study and survey done in relation to the recruitment
and selection in IDBI FEDERAL LIFE INSURANCE. The conclusion is drawn from the
study and survey of the company regarding the recruitment and selection process carried out
there.
Insurance is confronted with high attrition rate. Therefore it makes recruitment a
critical function in the organization. In the order to grow and sustain in the competitive
environment it is the important for an Organization to continuously develop and bring out
innovation in all its activity. It is only when in organization is recognized for its quality that it
can build a stability with its customers. Thus an organization must be able to stand out in the
crowd.
Most of the employees were satisfied but changes are required according to the
changing scenario as recruitment process has a great impact on the working of the company
as a fresh blood, new idea enters in the company.
Selection process is good but it should also be modified according to the requirements
and should job profile so that the main objective of selecting the candidate could be achieved.
The first step in the direction is to insure competitive people come in the organization.
Therefore, recruitment in this regard becomes an important function. The organization must
constantly, improvise recruitment process so that it’s able to attract best in the industry in
order to serve the best. Thus the organization must look out for method that can enable it to
adapt best recruitment practices.

74
REFERENCE
To refer using Websites are,
http://www.wikipedia.org
http://www.investopedia.com
http://www.idbifederal.com
http://www.irdai.gov.in
http://www.ahri.com.au
http://www.businessdictionary.com

75
QUESTIONNAIRE
A STUDY ON RECRUITMENT AND SELECTION AT IDBI FEDRAL LIFE
INSURANCE COMPANY LTD
I am JOTHYMANI R currently pursuing my Master in Business Administration at
E.G.S Pillay Engineering College. I am in your organization to undertake my final year
project which is included as a part of my curriculum. It would be helpful for me if you could
spend your valuable time to answer this questionnaire that will be very useful for me to
proceed with my project work.
Personal Data
1. Gender: Male Female
2. Age: 18-22 23-27 28-32 > 32
3. Designation: AL SAL GAL Others
4. Education Qualification: Diploma UG PG Others
5. Experience: <1 year 1-5 year 6-10 year >10 year
Note: The above information is highly confidential.
6. What form of interview did you prefer?
Personal Interview Telephonic interview
Video Conferencing Others
7. For which posting you recruiting more number of candidates?
Advisor Agency Leader
Senior Agency Leader Group Agency Leader
8. Which kind of personal interview did you prefer?
One – to – one Interview Panel Interview
Sequential Interview
9. What source would you like to adopt for source the candidate?
Candidate referral Advertising
Job portal All the above
10. How much days did the company take to respond to your application?
Less than 5 Days 5 – 10 Days
11 – 15 Days 15 – 20 Days
More than 20 Days

76
11. What source would you prefer for recruitment and selection?
Internal Source External Source
All the above None of the these
12. What is the source for internal sourcing among the following?
Present Permanent Employees Present Temporary Employees
Retired employees Disabled employees
13. What is the source for external sourcing among the following?
Campus Interview Placement Agencies
Private Employment Agencies Public Employment Agencies
Others, if any please mention it .
14. Which form of recruitment is used in IDBI Federal Life Insurance?
Centralized Decentralized
15. Which of following selection procedure and methods followed by your organization?
(You tick more one)
Psychometric Test Personal Interview
All the above
16. Which test takes a long time Period?
Aptitude Test Personal Interview
17. Which is the most important quality the organization looks for in a candidate?
S.NO
Important
Qualities
Highly
Satisfied Satisfied Neutral Dissatisfied
Highly
Dissatisfied
1. Knowledge
2. Past Experience
3. Optimistic Nature
4. Discipline
5. Team Work Ability
6. Others (Specify)

77
18. Are you satisfied with round of interview conducted?
Highly Satisfied Satisfied
Neutral Dissatisfied
Highly Dissatisfied
19. Are you satisfied with the present method being followed by the company for
recruitment and selection of the employer?
Highly Satisfied Satisfied
Neutral Dissatisfied
Highly Dissatisfied
20. Does your Organization plan the recruitment policy?
Yes No
21. Does IDBI Federal Life Insurance outline job analysis (i.e. duties, responsibilities
and skills etc required for a particular job) before advertising vacancies for employees?
Yes No
22. Are rejected candidates informed by what mode?
E-mail Text SMS to Phone Not Informed
23. Do you think innovative techniques like stress test, psychometric test & personality
test should be used for selection?
Strongly agree Agree
Neutral Disagree
Highly disagree
24. Following which test organization conduct for selection of candidate:
Aptitude Intelligence
Personality Psychological
Other
25. How do you rate the selection policy of the organization?
Good Average
Bad No Comments

A STUDY ON RECRUITMENT AND SELECTION AT IDBI FEDERAL LIFE INSURANCE IN ERODE

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