A PROJECT REPORT ON

“RECRUITMENT AND SELECTION

PROCESS IN HDFC BANK”

A Dissertation Submitted to Khallikote College (Autonomous), Berhampur In Partial Fulfillment Of

The Requirements For The Award Of The Degree Of bachelor In Commerce

SUBMITTED BY
L SANTOSH KUMAR
ROLL NO. 011603CM162

UNDER THE GUIDANCE OF

MRS.ANITA KUMARI PATRA

Lecturer in Commerce

POST GRDUATE DEPARTMENT OF COMMERCE

KHALLIKOTE COLLEGE (AUTONOMOUS), BERHAMPUR
2019
1
 DECLARATION

I MR. L SANTOSH KUMAR , Roll no 011603CM162 do

hereby declare that the dissertation entitled “RECRUITMENT AND SELECTION

PROCESS IN HDFC BANK” Submitted to the Khallikote college (Autonomous)

Berhampur , Ganjam as a partial fulfillment of the requirement for awarding of bachelor in

Commerce is my own work and it has not been submitted to any other University or

institutions, nor published anywhere else earlier.

Date:
Place: Berhampur (L SANTOSH KUMAR )

2
 Mrs. Anita Kumari Patra P. G. Department of Commerce
Lecturer in Commerce Khallikote college (Auto), Berhampur
email:oomshree@rediffmaill.com

Certificate

Certified that the disserttion entitled “RECRUITMENT AND SELECTION PROCESS IN

HDFC BANK”submitted by MR. L SANTOSH KUMAR , Roll no. 011603CM162, B.Com-

6th Semester, has not been copied from anywhere. Further, this disserttion has not been submitted earlier

to any university or institute for the award of any degree or diploma.

(Mrs. Anita Kumari Patra)

Supervisor

ACKNOWLEDGEMENT
3
I,L Santosh Kumarwould take this opportunity to thank the University for providing me an opportunity to
study“RECRUITMENT AND SELECTION PROCESS IN HDFC BANK”This has been a
huge learning experience for me.

With great pleasure I take this opportunity to acknowledge people who have made this project work
possible.

First of all I would sincerely like to thank MRS. ANITA KUMARI PATRA for helping me to gather
information and guiding me for doing this project.

I would also like to thank the teaching staff of my college, my colleagues, librarians and other people for
providing their help as and when required to complete this project.

(L SANTOSH KUMAR)

SL . NO. TOPIC PAGE NO.

1 Declaration 2
2 Certificate 3

4
3 Acknowledgement 4
4 Contents 5
5 Chapter-1-Introduction to the study 6-10
1.1. Objective of the study
1.2. Scope of the study
1.3. Research methodology
1.4. Sources of data collection
6 Chapter-2- Literature review on the project 11-12
7 Chapter-3:- INDIAN BANKING SYSTEM & A 13-22
SMALL DESCRIPTION ABOUT HDFC BANK
3.1. Indian Banking System 13-16
3.1.1. History of banking
3.1.2. Banking structure in India
3.1.3. Indian banking system structure
3.1.4. Indian banking industry analysis
3.1.5. Major players in india
3.2. About HDFC BANK 17-22

8 Chapter-4-Recruitement &Selection 23-44

4.1 introduction
4.2. Meaning and definition
4.3. Objectives and Importance of recruitement
4.4 Need for recruitement
4.5 Methods of recruitement
4.6. Factors affecting recruitement
4.7. Recruitement process
4.8. sources of recruitement
4.9.. Meaning and definition of selection
5.0. Importance of selection
5.1.. Selection process
5.2. Advantages of selection

9 Chapter-5:-Case study 45-54

Recruitment and Selection process at HDFC bank

10 Chapter-6:- Conclusion 55-58

6.1. Findings
6.2. Suggetion
6.3. Conclusion
6.4. References

CHAPTER 1-introduction 5
 OBJECTIVE OF THE STUDY

 SCOPE OF THE STUDY

 RESEARCH METHODOLOGY

 SOURCES OF DATA COLLECTION

6
 OBJECTIVE OF THE
STUDY

The main objectives of this project are the following:

 To study the concept of recruitment and selection.

 To study the recruitXment and selection procedure in HDFC.
 To identify areas where there can be scope for improvement.
 To give suitable recommendation to streamline the hiring process.
 To develop practical knowledge with theoretical aspects.
 To know about the importance of recruitment and selection
 To find out better process of recruitment.
 To know about the role of recruiter.

7
 SCOPE OF THE STUDY

The banking industry in India has a huge canvas of history, which covers the
traditional banking Practices from the time of The Britishers to the reforms period,
nationalization to privatization of banks and now increasing numbers of foreign banks
in India. Therefore, Banking in India has been through a long journey. Banking
industry in India has also achieved a new height with the changing times. The use of
technology has brought a revolution in the working style of the banks. Nevertheless,
the fundamental aspects of banking i.e. trust and the confidence of the people on the
institution remain the same. The majority of the banks are still successful in keeping
with the confidence of the shareholders as well as other stakeholders. However, with
the changing dynamics of banking business brings new kind of risk exposure.

The present study attempts to analyse the recruitment and selection process of
HDFC. The study will focus on recruitment steps and selection procedure of middle
level and junior level of management.

8
 RESEARCH methodology

The Research

Research is a careful investigation or inquiry especially through search for new

facts in any branch of knowledge.

The project is a systematic presentation consisting of the enunciated problem,

formulated hypothesis, collected facts or data, analysed facts and proposed conclusions
in form of recommendations.

Kinds of Research
The Research is done by:-

 Exploratory Research:
This kind of research has the primary objective of development of insights
into the problem. It studies the main area where the problem lies and also tries to
evaluate some appropriate courses of action.

 Sampling Method:
 Cluster sampling:-
A complete interaction and enumeration of all the employees of HDFC
Bank was not possible. So, a sample was chosen that consisted of 30 employees.

9
 SOURCES OF DATA
COLLECTION

Data Collection Sources

The data required for the study has been collected from both Primary as
well as Secondary sources.

 Primary Sources
 QUESTIONNAIRE survey among the official’s employees.
 PERSONAL INTERVIEWS with the representatives regarding Recruitment
and Selection.

 Secondary Sources
 Internet, Websites
 Organizational Reports
 Case Studies
 Business magazines
 Books
 Journals on e-learning Industry.

10
 CHAPTER-2
Literature review

Literature Review:
Definition:
Edwin Flippo defines Recruitment and selection process as “A process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an organization.”In simpler
terms, recruitment and selection are concurrent processes and are void without each other. They
significantly differ from each other and are essential constituents of the organization. It helps in
discovering the potential and capabilities of applicants for expected or actual organizational
vacancies. It is a link between the jobs and those seeking jobs.

Work by Korsten (2003) and Jones et al. (2006):

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).

Work by Alan Price (2007):

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.

Work by Hiltrop (1996):

Hiltrop (1996) was successful in demonstrating the relationship between the HRM practices, HRM-
organizational strategies as well as organizational performance. He conducted his research on HR
manager and company officials of 319 companies in Europe regarding HR practices and policies of
their respective companies and discovered that employment security, training and development
programs, recruitment and selection, teamwork, employee participation, and lastly, personnel

11
planning are the most essential practices (Hiltrop 1999). As a matter of fact, the primary role of HR
is to develop, control, manage, incite, and achieve the commitment of the employees.

Work by Jackson et al. (2009) and Bratton and Gold (1999):

As discussed by Jackson et al. (2009), Human resource management approaches in any business
organization are developed to meet corporate objectives and materialization of strategic plans via
training and development of personnel to attain the ultimate goal of improving organizational
performance as well as profits. The nature of recruitment and selection for a company that is
pursuing HRM approach is influenced by the state of the labour market and their strength within it.
Furthermore, it is necessary for such companies to monitor how the state of labour market connects
with potential recruits via the projection of an image which will have an effect on and reinforce
applicant expectations. Work of Bratton & Gold (1999) suggest that organizations are now
developing models of the kind of employees they desire to recruit, and to recognize how far
applicants correspond to their models by means of reliable and valid techniques of selection.
Nonetheless, the researchers have also seen that such models, largely derived from competency
frameworks, foster strength in companies by generating the appropriate knowledge against which
the job seekers can be assessed. However, recruitment and selection are also the initial stages of a
dialogue among applications and the company that shapes the employment relationship (Bratton &
Gold 1999).

Work by Silzer et al (2010):

However, the process of recruitment does not cease with application of candidature and selection of
the appropriate candidates, but involves sustaining and retaining the employees that are selected, as
stated by Silzer et al. (2010).

Work of Silzer et al. (2010) was largely concerned with Talent management, and through their work
they were successful in resolving issues like whether or not talent is something one can be born with
or is it something that can be acquired through development. According to Silzer et al (2010), that
was a core challenge in designing talent systems, facing the organization and among the senior
management.

Work by Taher et al. (2000):

Toward that end 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).

12
F
CHAPTER-3:-
INDIAN BANKING SYSTEM &
ABOUT HDFC BANK

HISTORY OF BANKING
3.1. INDIAN BANKINGSYSTEM
Banking is nearly as old as civilization. The history of banking could
be said to have started with the appearance of money. The first record
of minted metal coins was in Mesopotamia in about 2500B.C. the first
European banknotes, which was handwritten appeared in1661, in Sweden. cheque and printed paper money
appeared in the 1700’s and 1800’s, with many banks created to deal with increasing trade.
The history of banking in each country runs in lines with the development of trade and industry, and with the
level of political confidence and stability. The ancient Romans developed an advanced banking system to
serve their vast trade network, which extended throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban co”, meaning bench,
because moneylenders worked on benches in market places. The bank of Venice was established in 1171 to
help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes in
return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with the metal itself
staying under lock and key. The goldsmith realized that they could lend out some of the gold and silver that
they had and charge interest, as not all of the merchants would ask for the gold and silver back at the same
time. Eventually, instead of charging the merchants, the goldsmiths paid them to deposit their gold and
silver.
The bank of England was formed in 1694 to borrow money from the public for the government to finance
the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of their own
receipts.
New technology transformed the banking industry in the 1900’s round the world, banks merged into larger
13
and fewer groups and expanded into other country.

BANKING STRUCTURE IN INDIA:

In today’s dynamic world banks are inevitable for the development of a country. Banks play a pivotal role in
enhancing each and every sector. They have helped bring a draw of development on the world’s horizon and
developing country like India is no exception.

Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for moving finance
from those who have surplus money to (however temporarily) those who have deficit. In everyday branch
terms the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit.

Without the intermediary of the banks both their depositors and their borrowers would have to contact each
other directly. This can and does happen of course. This is what has lead to the very foundation of financial
institution like banks.

Before few decades there existed some influential people who used to land money. But a substantially high
rate of interest was charged which made borrowing of money out of the reach of the majority of the people
so there arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct contact between the depositors and bor-
rowers in now known as disintermediation.

Banking industry has always revolved around the traditional function of taking deposits, money transfer and
making advances. Those three are closely related to each other, the objective being to lend money, which is
the profitable activity of the three. Taking deposits generates funds for lending and money transfer services
are necessary for the attention of deposits. The Bank have introduced progressively more sophisticated
versions of these services and have diversified introduction in numerable areas of activity not directly
relating to this traditionaltrinity

14
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
State co-op Commercial Banks and Commercial Banks
Banks Banks Primary Cr.
Societies

Indian Foreign

Public Sector
Banks Private Sector HDFC,
Banks ICICI etc.

State Bank of India Other Nationalized Regional Rural

and its Banks Banks
Subsidiaries

INDIAN BANKING INDUSTRY ANALYSIS:

15
The banking scenario in India has been changing at fast pace from being just the borrowers and lenders
traditionally, the focus has shifted to more differentiated and customized product/service provider from
regulation to liberalization in the year 1991, from planned economy to market. Economy, from licensing to
integration with Global Economics, the changes have been swift. All most all the sector operating in the
economy was affected and banking sector is no exception to this. Thus the whole of the banking system in
the country has undergone a radical change. Let us see how banking has evolved in the past 57 years of
independence.

After independence in 1947 and proclamation in 1950 the country set about drawing its road map for the
future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the
expansion of banking into rural India and speed up the process of magnetization.
Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank employees and
their unions added to the list of nationalized banks a few years later.

Slowly the unions grew in strength, while bank management stagnated. The casualty was to the customer
service declined, complaints increased and bank management was unable to item the rot. In the meantime,
technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in
opposing the technology up gradation of banks. They mistakenly believed the technology would lead to
retrenchment and eventually the marginalization of unions.

The problem faced by the banking industry soon surfaced in their balance sheets. But the prevailing
accounting practices unable banks to dodge the issue.The rules of the game under which banks operated
changed in 1993. Norms or income Recognition, Assets classification and loan loss provisioning were put in
place and capital adequacy ratio become mandatory. The cumulative impact of all these changes has been on
the concept of state ownership in banks. It is increasingly becoming clear that the state ownership in bank is
no longer sustainable.The amendment of banking regulation act in 1993 saw the entry of new private sector
banks and foreign banks.
MAJOR PLAYER IN INDIA
1. HDFC BANK LTD
2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

3.2COMPANY PROFILE
OF HDFC BANK:-
16
 HDFC Bank commenced operations as Scheduled Commercial Bank in January
1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder
and Chairman-Emeritus, of HDFC Group.
HDFC BANK LTD was amongst the first to set up a bank in the private sector. The
bank was incorporated on 30th August 1994 in the name of „HDFC Bank Limited‟, with its
registered office in Mumbai. It commenced operations as a Scheduled Commercial Bank on
16th January 1995. The bank has grown consistently and is now amongst the leading players
in the industry.
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain the
market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the
Indian environment In a milestone transaction in the Indian banking industry, Times Bank
was merged with HDFC Bank Ltd., effective February 26, 2000

MISSION AND VISSION

17
VISSION

MISSION

To be a world class Indian bank by

adopting a single minded focus on
service excellence and product
quality.

18
ACCOUNTS

Features and Benefits

Free local collections through cheque and Fund transfer

Free Local and anywhere
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Features and Benefits

Access your account across a wide network of
branches and ATMs

19
 Avail of convenient services like Net Banking and Mobile Banking

Features:
Zero Balance Savings account
Free payable at par cheque book
Free InstaAlert and BillPay facility

LOCKER FACILITY

Wide availability of locker locations and sizes

Access to safe-deposit lockers at all branches, no
matter where your account is held. Lockers are
rented for one year, and rent is payable advance.
CARDS Debit cards
1. Chip technology integrated
card
2. Rs. 1 lakh cash back (upto Rs. 750/month)

Platinum card for shopping

1. Enjoy lifestyle dinning and events priviliges

2. Rs 1 cash back (upto Rs. 750/month) for every
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Credit cards

1 Base Fare Waived

JetAirways Ticket and upto
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3X JPMIles for Ticket Booking on

www.jetairways.com &
www.jetkonnect.com

20
LOAN FACILITY
HOME LOAN

Why choose this product?

 Flexible repayment options

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 Automated Repayment of Home Loan EMIs

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PERSONAL LOAN

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Get a life cover online upto 10 crore at nominal cost

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HOME INSURANCE

Protection of all your property and its contents priceless possessions and property
in a single policy.

23
 Minimum documentation is required for this policy.
Listings and shareholding
The equity shares of HDFC Bank are listed on the Bombay Stock
Exchange and the National Stock Exchange of India. Its American
Depository Shares are listed on NYSE and the global depository receipt are listed on the Luxembourg Stock
Exchange where two GDRs represent one equity share of HDFC Bank.

Shareholders (as of 31 December 2015) Shareholding[16]

Promoter group (HDFC) 21.57%
Foreign institutional investors (FII) 32.4%
Individual shareholders 8.5%
Bodies corporate 7.5%
Insurance companies 5.38%
Mutual funds/UTI 8.65%
NRI/OCB/others 0.29%
Financial institutions/banks 2.75%
ADS/GDRs 18.78%

Awards and recognition

 Best Banking Performer, India in 2016 by Global Brands Magazine Award.[17]
Best Performing Branch
Award for Best Performance
in Microfinance among private sector banks by
in Microfinance
NABARD, 2016
Bank of the year & best
KPMG study of India's Best Banks digital banking initiative
award 2016
Business leader of the year-
AIMA Managing India Awards 2015
Aditya Puri
Most Valued brand in India
BrandZ Rankings
for third successive year
FinanceAsia poll on Asia's Best Companies Best managed public
2015 company - India
World's 30 Best CEOs -
Barron's
Aditya Puri
J. P. Morgan Quality Recognition Award Best in class

24
 Chapter -4 :-
RECRUITEMET
&Selection

Introduction
Most employers recognize the fact that their staff is their greatest asset, and the
right Recruitment and Induction processes are vital in ensuring that the new employee
becomes effective in the shortest time. The success of an organisation depends on
having the right number of staff, with the right skills and abilities. Organisations may
have a dedicated Personnel/Human Resource function overseeing this process, or they
may devolve these responsibilities to line managers and supervisors. Many people may
be involved, and all should be aware of the principles of good practice. Even it is
essential to involve others in the task of recruitment and induction.

Manpower Planning
Manpower planning means different things to different organizations. To some
Company’s manpower planning means management development to others. It means
estimating manpower needs, while some other may define manpower planning as
Organization planning.All organizations are basically human organizations. They need
people to carry out the organizational mission, goals and objectives. Every organization
needs to recruit people.The efficient utilization of human resources may very well be
the most important determiner of success in the business world in the coming decade.

25
RECRUITMENT
Meaning
Recruitment is a process of
searching for prospective candidates
for the given job in the organisation.
As we know it is very important for the
organisations to have efficient and
effective personnel with right quality
and at right time and at right place
available whenever they are needed. Every organisation needs employee time by time
because of promotion or retirement of an employee. For this purpose an organisation
needs to search for the right candidates.

It is the process of choosing the right person for the right position and at the right time.
Recruitment also refers to the process of attracting, selecting, and appointing potential
candidates to meet the organization’s resource requirements.It is a process of
identifying, screening, shortlisting and hiring potential resource for filling up the
vacant positions in an organization. It is a core function of Human Resource
Management.

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.”
 Kempner writes, “Recruitment forms the first stage in the process which continues
with selection and ceases with the placement of the candidates.”
 According to Bergmann and Taylor, “Recruitment is the process of locating,
identifying, and attracting capable applicants.”

Objectives of Recruitment
26
The Objectives of Recruitment are:
 To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies.
 To induct outsiders with a new perspective to lead the company.
 To infuse fresh blood at all levels of the organization.
 To devise methodologies for assessing psychological traits.
 It reviews the list of objectives of the company and tries to achieve them by
promoting the company in the minds of public.
 It forecasts how many people will be required in the company.
 It enables the company to advertise itself and attract talented people.
 It provides different opportunities to procure human resource.

Importance of Recruitment
Recruiting people who are wrong for the organisation can lead to increased
labour turnover, increased costs for the organisation, and lowering of morale in the
existing workforce. Such people are likely to be discontented, unlikely to give of their
best, and end up leaving voluntarily or involuntarily when their unsuitability becomes
evident. They will not offer the flexibility and commitment that many organisations
seek.

Here is a list that shows the purpose and importance of Recruitment in an

organization –

 It determines the current and future job requirement.

 It increases the pool of job at the minimal cost.
 It helps in increasing the success rate of selecting the right candidates.
 It helps in reducing the probability of short term employments.
 It meets the organization’s social and legal obligations with regards to the work
force.
 It helps in identifying the job applicants and selecting the appropriate resources.
27
  It helps in increasing organizational effectives for a short and long term.
 It helps in evaluating the effectiveness of the various recruitment techniques.
 It attracts and encourages the applicants to apply for the vacancies in an
organization.
 It determines the present futures requirements of the organization and plan
according.
 It links the potential employees with the employers.
 It helps in increasing the success ratio of the selection process of prospective
candidates.
 It helps in creating a talent pool of prospective candidates, which enables in
selecting the right candidates for the right job as per the organizational needs.

Need for Recruitment

Recruitment Needs are of Three Types:
 Planned:
i.e., the needs arising from changes in organisation and retirement policy.
 Anticipated:
Anticipated needs are those movements in personnel, which an organization can
predict by studying trends in internal and external environment.
 Unexpected:
Resignation, deaths, accidents, illness give rise to unexpected needs.

Methods of Recruitment
Recruitment methods refer to the means by which an organisation reaches to the
potential job seekers. In other words, these are ways of establishing contacts with the
potential candidates.

These are:
1. Direct Method

28
 2. Indirect Method
3. Third Party Method

1. Direct Method
In this method, the representatives of the organisation are sent to the potential
candidates in the educational and training institutes. They establish contacts with the
candidates seeking jobs. These representatives work in cooperation with placement
cells in the institutions Persons pursuing management; engineering, medical etc.
programmes are mostly picked up in this manner.
2. Indirect Method
Indirect methods include advertisements in newspapers, on the radio and
television, in professional journals, technical magazines etc.

This method is useful when:

 Organisation does not find suitable candidates to be promoted to fill up the
higher posts
 When the organisation wants to reach out to a vast territory, and
 When organisation wants to fill up scientific, professional and technical posts.
The experience suggests that the higher the position to be filled up in the
organisation, or the skill sought by the more sophisticated one, the more widely
dispersed advertisement is likely to be used to reach to many suitable candidates.
3. Third Party Method
These include the use of private employment agencies, management
consultants, professional bodies/associations, employee referral/recommendations,
voluntary organisations, trade unions, data banks, labour contractors etc., to establish
contact with the job- seekers.

Factors affecting Recruitment

29
 Recruitment is an important function of the Human Resource Management in
an organization, and it is governed by a mixture of various factors.
These are broadly classified into two categories:
1. Internal Factors
2. External Factors
1. Internal Factors:
The internal factors also called endogenous factors are the factors within the
organisation that affect recruiting personnel in the organisation.
Some of these are mentioned here.
 Size of the Organisation
The size of an organisation affects the recruitment process. Experience suggests
that larger organisations find recruitment less problematic than organisations with
smaller in size.
 Recruiting Policy
The recruiting policy of the organisation i.e., recruiting from internal sources
(from own employees) and from external sources (from outside the organisation) also
affects recruitment process. Generally, recruiting through internal sourcing is
preferred, because own employees know the organisation and they can well fit into the
organisation’s culture.
 Image of the Organisation
Image of organisation is another internal factor having its influence on the
recruitment process of the organisation. Good image of the organisation earned by a
number of overt and covert actions by management helps attract potential and
competent candidates.
Managerial actions like good public relations, rendering public services like
building roads, public parks, hospitals and schools help earn image or goodwill for the
organisation. That is why blue chip companies attract large number of applications.

30
 Image of Job
Just as image of organisation affects recruitment so does the image of a job
also. Better remuneration and working conditions are considered the characteristics of
good image of a job. Besides, promotion and career development policies of
organisation also attract potential candidates.

2. External Factors:
External factors are those that cannot be controlled by an organization. The
external factors that affect the recruitment process include the following –
Some of these are mentioned here.
 Demographic Factors
As demographic factors are intimately related to human beings, i.e., employees,
these have profound influence on recruitment process. Demographic factors include
sex, age, literacy, economic status etc.
 Labour Market
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a specific
skill is high relative to its supply, recruiting employees will involve more efforts. On
the contrary, if supply is more than demand for a particular skill, recruitment will be
relatively easier.
 Unemployment Situation
The rate unemployment is yet another external factor having its influence on the
recruitment process. When the unemployment rate in a given area is high, the
recruitment process tends to be simpler. The reason is not difficult to seek. The number
of applicants is expectedly very high which makes easier to attract the best qualified
applicants. The reverse is also true. With a low rate of unemployment, recruiting
process tends to become difficult.

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 Labour Laws
There are several labour laws and regulations passed by the Central and State
Governments that govern different types of employment. These cover working
conditions, compensation, retirement benefits, and safety and health of employees in
industrial undertakings.
 Legal Considerations
Another external factor is legal considerations with regard to employment.
Reservation of jobs for the scheduled castes, scheduled tribes, and other backward
classes (OBCs) is the popular example of such legal consideration. The Supreme Court
of India has given its verdict in favour of 50 per cent of jobs and seats. This is so in
case of admissions in the educational institutions also.
 Competitors
When organizations in the same industry are competing for the best qualified
resources, there is a need to analyse the competition and offer the resources packages
that are best in terms of industry standards.

Recruitment Process

32
 Recruitment is a process of finding and attracting the potential resources for
filling up the vacant positions in an organization. It sources the candidates with the
abilities and attitude, which are required for achieving the objectives of an
organization.

Recruitment process is a process of identifying the jobs vacancy, analysing the

job requirements, reviewing applications, screening, shortlisting and selecting the right
candidate.

To increase the efficiency of hiring, it is recommended that the HR team of an

organization follows the five best practices (as shown in the following image). These
five practices ensure successful recruitment without any interruptions. In addition,
these practices also ensure consistency and compliance in the recruitment process.
Recruitment process is the first step in creating a powerful resource base. The
process undergoes a systematic procedure starting from sourcing the resources to
arranging and conducting interviews and finally selecting the right candidates from
Recruitment Planning up to Evaluation & Control as shown in the above image. The
process includes;

1. Recruitment Planning
Recruitment planning is the first step of the recruitment process, where the
vacant positions are analysed and described. It includes job specifications and its
nature, experience, qualifications and skills required for the job, etc.
A structured recruitment plan is
mandatory to attract potential candidates
from a pool of candidates. The potential
candidates should be qualified,
experienced with a capability to take the
responsibilities required to achieve the
objectives of the organization.
This includes the following sub-points,
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 Identifying Vacancy
The first and foremost process of recruitment plan is identifying the vacancy.
This process begins with receiving the requisition for recruitments from different
department of the organization to the HR Department, which contains-
 Number of posts to be filled
 Number of positions
 Duties and Responsibilities to be performed
 Qualification and Experience required
When a vacancy is identified, it the responsibility of the sourcing manager to
ascertain whether the position is required or not, permanent or temporary, full-time or
part-time, etc. These parameters should be evaluated before commencing recruitment.
Proper identifying, planning and evaluating leads to hiring of the right resource for the
team and the organization.
 Job Analysis
Job analysis is a process of identifying, analysing, and determining the duties,
responsibilities, skills, abilities, and work environment of a specific job. These factors
help in identifying what a job demands and what an employee must possess in
performing a job productively.
Job analysis helps in understanding what tasks are important and how to
perform them. Its purpose is to establish and document the job relatednessof
employment procedures such as selection, training, compensation, and performance
appraisal.
 Job Description
Job description is an important document, which is descriptive in nature and
contains the final statement of the job analysis. This description is very important for a
successful recruitment process.
Job description provides information about the scope of job roles,
responsibilities and the positioning of the job in the organization. And this data gives
34
the employer and the organization a clear idea of what an employee must do to meet
the requirement of his job responsibilities.
 Job Specification
Job specification focuses on the specifications of the candidate, whom the HR
team is going to hire. The first step in job specification is preparing the list of all jobs
in the organization and its locations. The second step is to generate the information of
each job.
A job specification document provides information on the following elements –
 Qualification
 Experiences
 Training and Development
 Skills Requirements
 Work Responsibilities
 Emotional Characteristics
 Planning of Career
 Job Evaluation
Job evaluation is a comparative process of analysing, assessing, and
determining the relative value/worth of a job in relation to the other jobs in an
organization.
The main objective of job evaluation is to analyse and determine which job
commands how much pay. There are several methods such as job grading, job
classifications, job ranking, etc., which are involved in job evaluation. Job evaluation
forms the basis for salary and wage negotiations.

2. Strategy Development
Recruitment strategy is the second step of the recruitment process, xwhere a
strategy is prepared for hiring the resources. After completing the preparation of job

35
descriptions and job specifications, the next step is to decide which strategy to adopt
for recruiting the potential candidates for the organization.

3. Searching
Searching is the process of recruitment
where the resources are sourced depending
upon the requirement of the job. After the
recruitment strategy is done, the searching of
candidates will be initialized. This process
consists of two steps –
 Source activation − Once the line manager verifies and permits the existence of
the vacancy, the search for candidates starts.
 Selling − Here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates.

Searching involves attracting the job seekers to the vacancies. The sources are
broadly divided into two categories: Internal Sources and External Sources, which
will be discussed at the later stage.

4. Screening/Shortlisting
Screening starts after completion of the process of sourcing the candidates.
Screening is the process of filtering the applications of the candidates for further
selection process.
Screening is an integral part of recruitment process that helps in removing
unqualified or irrelevant candidates, which were received through sourcing. The
screening process of recruitment consists of three steps –
 Reviewing of Resumes and Cover Letters
Reviewing is the first step of screening candidates. In this process, the resumes
of the candidates are reviewed and checked for the candidates’ education, work
experience, and overall background matching the requirement of the job.
36
 Conducting Telephonic or Video Interview
Conducting telephonic or video interviews is the second step of screening
candidates. In this process, after the resumes are screened, the candidates are contacted
through phone or video by the hiring manager.
This screening process has two outcomes –
 It helps in verifying the candidates, whether they are active and available.
 It also helps in giving a quick insight about the candidate’s attitude, ability to
answer interview questions, and communication skills.
 Identifying the Top Candidates
Identifying the top candidates is the final step of screening the
resumes/candidates. In this process, the cream/top layer of resumes are shortlisted,
which makes it easy for the hiring manager to take a decision.
5. Evaluation & Control
Evaluation and control is the last stage in the process of recruitment. In this
process, the effectiveness and the validity of the process and methods are assessed.
Recruitment is a costly process, hence it is important that the performance of the
recruitment process is thoroughly evaluated.
The costs incurred in the recruitment process are to be evaluated and controlled
effectively

SOURCES OF RECRUITMENT
For any organization, recruitment is a crucial part of developing and
maintaining an effective and efficient team. A good recruitment strategy will cut down
the wastage of time and money, which would have incurred for extensive training and
development of unqualified resources.
Recruiters use different methods to
source, screen, shortlist, and select the resources
as per the requirements of the organization.
37
Recruitment types explain the means by which an organization reaches potential job
seekers.
The candidates may be available inside or outside the organisation. Basically,
there are two sources of recruitment i.e., Internal and External Sources.

1. Internal Sources of Recruitment

Internal sources of recruitment refer to hiring employees within the
organization internally. In other words, applicants seeking for the different positions
are those who are currently employed with the same organization.
Internal sources of recruitment are the best and the easiest way of selecting
resources as performance of their work is already known to the organization. Let us
now discuss more on the various internal sources of recruitment.
a. Promotions
b. Transfers
c. Recruiting former Employees
d. Internal Advertisements
e. Employee Referrals
f. Previous Applicants

a. Promotions
Promotion refers to upgrading the cadre of the employees by evaluating their
performance in the organization. It is the process of shifting an employee from a lower
position to a higher position with more responsibilities, remuneration, facilities, and
status. Many organizations fill the higher vacant positions with the process of
promotions, internally.
b. Transfers
Transfer refers to the process of interchanging from one job to another without
any change in the rank and responsibilities. It can also be the shifting of employees

38
from one department to another department or one location to another location,
depending upon the requirement of the position.
c. Recruiting former Employees
Recruiting former employees is a process of internal sources of recruitment,
wherein the ex-employees are called back depending upon the requirement of the
position. This process is costeffective and saves plenty of time.
d. Internal Advertisements
Internal Advertisements is a process of posting/advertising jobs within the
organization. This job posting is an open invitation to all the employees inside the
organization, where they can apply for the vacant positions. It provides equal
opportunities to all the employees working in the organization. Hence, the recruitment
will be done from within the organization and it saves a lot of cost.
e. Employee Referrals
Employee referrals is an effective way of sourcing the right candidates at a low
cost. It is the process of hiring new resources through the references of employees,
who are currently working with the organization. In this process, the present
employees can refer their friends and relatives for filling up the vacant positions.
f. Previous Applicants
Here, the hiring team checks the profiles of previous applicants from the
organizational recruitment database. These applicants are those who have applied for
jobs in the past. These resources can be easily approached and the response will be
positive in most of the cases. It is also an inexpensive way of filling up the vacant
positions.
2. External Sources of Recruitment
External sources of recruitment refer to hiring employees outside the
organization externally. In other words, the applicants seeking job opportunities in this
case are those who are external to the organization.

39
 a. Direct Employment
b. Employment Exchanges
c. Employment Agencies
d. Advertisements
e. Professional Associations
f. Campus Recruitment
g. Word of Mouth Advertising

a. Direct Recruitment
Direct recruitment refers to the external source of recruitment where the
recruitment of qualified candidates are done by placing a notice of vacancy on the
notice board in the organization. This method of sourcing is also called as factory gate
recruitment, as the blue-collar and technical workers are hired through this process.
b. Employment Exchanges
As per the law, for certain job vacancies, it is mandatory that the organization
provides details to the employment exchange. Employment exchange is a government
entity, where the details of the job seekers are stored and given to the employers for
filling the vacant positions. This external recruitment is helpful in hiring for unskilled,
semi-skilled, and skilled workers.
c. Employment Agencies
Employment agencies are a good external source of recruitment. Employment
agencies are run by various sectors like private, public, or government. It provides
unskilled, semi-skilled and skilled resources as per the requirements of the
organization. These agencies hold a database of qualified candidates and organizations
can use their services at a cost.
d. Advertisements
Advertisements are the most popular and very much preferred source of
external source of recruitment. The job vacancy is announced through various print
and electronic media with a specific job description and specifications of the
40
requirements. Using advertisements is the best way to source candidates in a short span
and it offers an efficient way of screening the candidates’ specific requirements.
e. Professional Associations
Professional associations can help an organization in hiring professional,
technical, and managerial personnel, however they specialize in sourcing mid-level
and top-level resources. There are many professional associations that act as a bridge
between the organizations and the job-seekers.
f. Campus Recruitment
Campus recruitment is an external source of recruitment, where the educational
institutions such as colleges and universities offers opportunities for hiring students. In
this process, the organizations visit technical, management, and professional
institutions for recruiting students directly for the new positions.
g. Word of Mouth Advertising
Word of mouth is an intangible way of sourcing the candidates for filling up the
vacant positions. There are many reputed organizations with good image in the market.
Such organizations only need a word-of-mouth advertising regarding a job vacancy to
attract a large number of candidates..

Selection
Meaning:
Selection is the process of
picking or choosing the right
candidate, who is most suitable for a vacant job position in an organization. In others
words, selection can also be explained as the process of interviewing the candidates
and evaluating their qualities, which are required for a specific job and then choosing
the suitable candidate for the position.

41
 The selection of a right applicant for a vacant position will be an asset to the
organization, which will be helping the organization in reaching its objectives.

Definition:
 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.”
Hence, Selection of an employee is a process of choosing the applicants, who
have the qualifications to fill the vacant job in an organization. A good selection
process will ensure that the organization gets the right set of employees with the
right attitude.

Importance of Selection
Selection is an important process because hiring good resources can help
increase the overall performance of the organization. In contrast, if there is bad hire
with a bad selection process, then the work will be affected and the cost incurred for
replacing that bad resource will be high.
a. Reduced labour turnover
Properly selected candidates feel like staying in the organisation; as suitable
work on matching jobs, assigned to them is a source of satisfaction to them. Hence,
the phenomenon of unnecessary labour turnover is highly minimised – making for a
stable labour force in the organisation. This benefits both the organisation and the
worker.
b. Lesser need for training
Properly selected personnel exhibit a lesser need for training; as their
suitability for the jobs to be assigned to them, has already been verified through the
selection-procedure. As such the necessity for arranging ‘routine-training
programmes’ for such personnel is rules out – saving organisation’s time, efforts and
costs involved in conducting such training programmes.
c. Self-motivation and high morale
When suitable candidates (i.e. ‘best-fits’) are assigned to matching jobs; such
personnel feel self-motivated towards the best performance of’ their jobs. The
constant state of self-motivation over a period of time helps in building high morale
of such personnel, for the organisation.
d. More and better production – leading to profit maximisation
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 A derivative advantage of the ‘self-motivation and high morale’ is that the
production (or performance) turned out by ‘best fits’ is not only more in quantity;
but is also of a superior quality. This phenomenon leads to profit maximisation, for
the enterprise, in the long-run.
e. Good human relations
As a result of good selections, there is a better environment for working in
the organisation. Such environment helps to promote good human relations in the
organisation; which is one of the highly valued assets of the organisation.


Selection process
 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.
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.
 Significance of Selection Process
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.
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.
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.

43
  Selection
Process Steps
A scientific and
logical selection
procedure leads to
scientific selection of
candidates. The criterion
finalized for selecting a
candidate for a particular job
varies from company to
company.
Therefore, the
selection procedure followed by different organizations, many times, becomes
lengthy as it is a question of getting the most suitable candidates for which various
tests are to be done and interviews to be taken.

1. Inviting Applications
The prospective candidates from within the organization or outside the
organization are called for applying for the post. Detailed job description and job
specification are provided in the advertisement for the job. It attracts a large number
of candidates from various areas.
2. Receiving Applications
Detailed applications are collected from the candidates which provide the
necessary information about personal and professional details of a person. These
applications facilitate analysis and comparison of the candidates.
3. Scrutiny of Applications
As the limit of the period within which the company is supposed to receive
applications ends, the applications are sorted out. Incomplete applications get
rejected; applicants with un-matching job specifications are also rejected.
4. Written Test
As the final list of candidates becomes ready after the scrutiny of
applications, the written test is conducted. This test is conducted for understanding
the technical knowledge, attitude and interest of the candidates. This process is
useful when the number of applicants is large.
Many times, a second chance is given to candidates to prove themselves by
conducting another written test.

44
 5. Psychological Test
These tests are conducted individually and they help for finding out the indi-
vidual quality and skill of a person. The types of psychological tests are aptitude test,
intelligence test, synthetic test and personality test.
[Note- Details of different types of tests are given in the later pages]

6. Personal Interview
Candidates proving themselves successful through tests are interviewed per-
sonally. The interviewers may be individual or a panel. It generally involves officers
from the top management.
The candidates are asked several questions about their experience on another
job, their family background, their interests, etc. They are supposed to describe their
expectations from the said job. Their strengths and weaknesses are identified and
noted by the interviewers which help them to take the final decision of selection.
[Note- Details of different types of interviews are given in the later pages]
7. Reference Check
Generally, at least two references are asked for by the company from the can-
didate. Reference check is a type of crosscheck for the information provided by the
candidate through their application form and during the interviews.
8. Medical Examination
Physical strength and fitness of a candidate is must before they takes up the
job. In-spite of good performance in tests and interviews, candidates can be rejected
on the basis of their ill health.
9. Final Selection
At this step, the candidate is given the appointment letter to join the
organization on a particular date. The appointment letter specifies the post, title,
salary and terms of employment. Generally, initial appointment is on probation and
after specific time period it becomes permanent.
10. Placement
This is a final step. A suitable job is allocated to the appointed candidate so
that they can get the whole idea about the nature of the job. They can get adjusted to
the job and perform well in future with all capacities and strengths.

Advantages of Selection process

45
 A good selection process offers the following advantages-
 It is cost-effective and reduces a lot of time and effort.
 It helps avoid any biasing while recruiting the right candidate.
 It helps eliminate the candidates who are lacking in knowledge, ability, and
proficiency.
 It provides a guideline to evaluate the candidates further through strict
verification and reference-checking.
 It helps in comparing the different candidates in terms of their capabilities,
knowledge, skills, experience, work attitude, etc.

CHAPTER:-5 –case study on hdfc bank

RECUITEMENT & SELECTION PROCESS AT HDFC BANK

HUMAN RESOURCE DEPARTMENT

“Human Resource Management function that helps managers recruit, select, train and develop members for
an organization. Obviously, HRM is concerned with the people’s dimension in organizations.

46
 Work force of an Organization is one of the most important inputs of components. It is said that people are
our single most important assets. Because of the unique importance of HUMAN RESOURCE and its
complexity due to ever changing psychology, behavior and attitudes of men and women at work, in all
business concerns, there is one common element. I.e. Human personnel function, i.e., manpower
management function is becoming increasingly specialized. The personnel function or system can be broadly
defined as the management of people at work- management of managers and management of workers.
Personnel function is particularly interested in personnel relationship and interaction of employees-human
relations.

In a sense, management is personnel administration. Management is the development of people, and not
mere direction of material resources. Human capital is the greatest asset of a business enterprise. The
essential ingredient of management is the leadership and direction of people. Each manager of people has to
be his own personnel man. Personnel management is not something you really turn over to personnel
department staff.

Responsibilities of Human Resource Department.

 HRD maintain daily attendance record through branch manager via E-mail.
 Take decisions for approval regarding leave notes.
 He takes the decision related to the recruitment, selection and training of the candidates. He talks
to the consultant related to the recruitment of the qualified candidates. He also does screening of
the candidates, shortlist the candidate and takes the first round of the interview.
Human Resource planning

This is handled by doing the planning at the beginning of every year. At the end of the year, the Human
Resource department from each Branch receives the requirement for the person for whole year. Then the
planning of recruitment and training is done by training manager and recruiting manager which is approved
from Head of HR Department.

RECRUITMENT
Recruitment is a process of searching for prospective candidates for the given job in the industry. As we

know it is very important for an industrial concerns to have efficient and effective personnel with right

quality and at right time and at right place available whenever they are needed. Every organization needs

employee time by time because of promotion or retirement of an employee. For this purpose an organization

need to search for the right candidate. And so it needs to encourage this type of right candidates whenever
47
they require.

Sources of Recruitment
 Personal data of candidates and data bank maintain by the HR. department.
 Campus Recruitment.
 Company’s own website.
 Placement consultants.
 Advertisement in the news papers like Times of India, Gujarat
Samachar.
 Employee reference.

Recruitment Process

Applicamt Profile Shortlist Screening Interview

pool Check

Selection
 Selection is the process of taking individuals out
of the pool of job applicants with requisite
qualifications and competence to fill jobs in the
organization. It is define as the process of
differentiating between applicants in order to
identify and hire those with a greater
likelihood of success in a job.
 Selection is based on probation base, they are
taking experienced person for 6 month’s
probation and for fresher the probation period is 1
year.
 While the selection of the senior level post, is taken by head office at Mumbai.

Training and Development

48
 

Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic
world of business training is more important there is an ever present need for
training men. So that new and changed techniques may be adopted. A new and
changed technique may be taken as an advantages and improvement affected in the
old methods.

 Training is learning experience that seeks relatively permanent change in an

individual that will improve his/her ability to perform on the job.

 They provide “on the job” training to their employees in the branch as they select
these employees for selling various products of bank by direct marketing.
Whenever they select new candidates for any post, they use to give them on the job
work.

 In case of sales persons to distribute their various products, in the beginning the
person has to work under the observation of his senior then the have to go in
market to have their own experience.

 The time for training program for the candidate is depends up on the relevant
position of his work area. They also provide training related to customer care and
communication.

RECRUITMENT AND SELECTION PROCESS

Meaning:
49
Recruitment and Selection system refers to sourcing and building efficient Human Resource to the
organization to attain its objectives.
There are seven main stages to the procedure:
 Pre-advertisement
 Placing advertisements and dealing with enquiries and applicants
 Short-listing
 Interviewing and selection
 Post-selection procedures
 Induction
 Monitoring
HIRING APPROVAL
• All recruitment activities shall be undertaken based on the hiring plan as approved by the Business Head,
HR Head & the CEO. For each approved position, a hiring requisition will be required prior to initiation of
any recruitment activity. If the hiring was not included in the planned budget, it will also require approval
from the CEO based on a recommendation from the Head HR and the CFO.
• Recruitment expense will be allocated to the concerned business unit, and expenditure should be budgeted
and pre-approved by the business unit head and the HR Head.

CANDIDATE SOURCING:
The hiring manager along with the Human Resource Department would decide the channel / source to use
based on the nature of the recruitment. The following sources of recruitment may be considered:
• Internal Sources:
- Whenever any vacancy arises, the possibility of fulfilling the requirement internally via reassignment and
relocation, re-allocation of the responsibilities or internal promotion will be explored by the hiring function
along with the HR Department.
- Internal job postings to explore internal candidates.
• Employee Referrals – HDFC will encourage employees to refer suitable candidates for open positions.
• Other external sources include:
- Recruitment agencies
- External job postings
- College / campus requirement

50
  Requirement advertisements

APPLICATION PROCESSING:
HDFC will process all applications promptly and inform the applicant or source regarding the status of the
application. HDFC will respond to all solicited applications within 5 working days of receiving the
application.

INTERVIEW PROCESS:
• All candidates are required to undergo a face to face interview with the interview panel before selection.
• Interviews may be conducted at a place at mutually convenient locations and time in an effort to maintain
confidentiality of the hiring effort.
• One on one meeting shall be preferred as the interview format, however depending on the constraints panel
interviews / telephone / video conference screening could be used.
• For recruitment at junior levels, job fairs, universities etc, where large volume of candidates, HDFC will
use recruitment tests for purpose of short listing. The candidate may be tested on the basic aptitude,
analytical skills or other skills required for the job of the candidates.
• The interview process will focus on the evaluating the candidates suitability in terms of the job description
and fit within the organization.
• Each interviewer will complete the interview feedback form and submit it to HR. HR will compile the
results from a various interviews and provide these to the line manager for the final decision.
The following are the guidelines wit respect to the interview levels. The line manager will own the overall
interview process:
 Position,
 Level Equipment Hiring Decision by Interview by Salary Fitment Offer Letter Signed by
 Direct Report CEO Head CEO/ HR Head, Management Team (for relevant functions) Approval - CEO
 Proposal – HR Head CEO
 State Head/ Regional Function Heads, Cluster Heads Regional Branch Heads, National functional Heads
Regional Branch Head / National Functional Head, Regional HR Approval – CEO
 Proposal – HR Head HR Head
 Branch Manager / National Functional Managers Regional Branch Heads, National functional Heads
Regional Branch Head / National Functional Head, Regional HR, Cluster / State Head Approval – HR
Head
 Proposal – C & B Manager HR Head
 Senior Relationship Manager Regional Branch Head/ Branch Manager Regional Branch Head/ Branch
Manager, Regional HR Approval – HR Head

51
 Proposal – C & B Manager Staffing Leader
 Junior Relationship Manager Branch Manager Branch Manager, Cluster Head Approval – C&B Manager
 Proposal – Regional HR Mgr. Regional HR Manager

For campus / bulk hiring process, each panel will be specifically authorized with respect to hiring decision,
pay by the HR Head & CEO prior to the process.

RECRUITMENT EXPENSES:
• All recruitment expenses including recruitment fees, advertisement expenses and interview related
expenses will be allocated to the concerned business unit.
• The candidate will be informed about the nature of the expenses that are reimbursable and the supporting
documents required (in original). HR will ensure that candidate fills the necessary reimbursement forms and
that he/she receives the reimbursement at the earliest.
• Outstation/International Candidates - HDFC will pay for appropriate air fare and expenses incurred for the
stay for candidates who they decide to fly from other locations. Prior approval from the Regional HR Leader
/ HR Head is required to invite candidates. For candidates from International Locations, prior approval from
the HR Head needs to be taken.

PRE-EMPLOYEMENT CHECK:
This will include both a professional reference check as well as the background check.
• Professional reference check will be completed by the hiring manager. HDFC will request contact
information for 2 references from the candidate, and check the quality of previous work experience and key
personal characteristics/conduct/ previous record etc.
• For key positions in areas, HDFC will also perform a background check to assess the integrity conduct of
the candidate.
• The following information regarding the candidate will be verified:
 Proof of educational qualifications
 Any professional certificate that is essential to the job
 Address details
 Passport details
 Date of birth
 Proof of previous employment (service certificate)
Any negative feedback and comment in the reference check will be investigated by HR and if found genuine
52
shall be a cause for disqualification of the candidate or dismissal from employment.

OFFER PROCESS:
• Once the hiring decision is finalized, HR will prepare an offer / fitment as per the compensation structure
and grade and keeping in mind the internal equity.
• The offer would be communicated to the selected candidates by the hiring manager along with HR. The
candidate will sign the contract letter to formally accept employment from the organization.

PRE-EMPLOYMENT PROCESS:
As an organization, HDFC will make all necessary arrangements to ensure a smooth joining process for the
employees. HR will provide the candidate a check list prior to joining to ease joining formalities.

RELOCATION FOR EMPLOYMENT:

Where the employee has to relocate and has been pre-approved by the HR Head and the staffing leader, the
relocating candidate shall be eligible for the following relocation assistance:
 The joining employ has the option to avail temporary accommodation (which includes laundry) for
the first two weeks arranged by organization. The stay in company provided accommodation can be
extended by two weeks further based on specific approval from the Head HR. Where the stay extends
beyond 4 weeks, the respective will not be paid housing allowance foe the corresponding period.
 Local travel assistance up to positions of RO/RM/equivalent and below will be reimbursed for one
week and for SRM/equivalent and above will be reimbursed up to two weeks.
 Food expenses during the period will be reimbursed as per actual up to Rs 500/-per day per person.
 Approved reasonable expenses incurred in transporting the personal goods including the
transportation /registration of one automobile to the city of work. Employees are advised to use the
designated moving agencies as per rates negotiated by Administration. Where negotiated rates are not
available, the employee is required to submit 3 quotations and secure approval from Administration
before assigning the contract to a moving firm.

EMPLOYEMENT OF RELATIVES:
The organization employs, purely on merit, the relatives of our employees as long as it does not create a
potential conflict of interest. To avoid a potential conflict of interest and to reduce the possibilities of
favoritism – the following guidelines must be followed:
 Relatives are not assigned to a position where he/she has the opportunity to check, process, and
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 review, approve, audit or otherwise affect the work of the persons cited and above.
 NO one is assigned to a position where she/he influences the professional progress or promotion of
the persons cited above.
 If one is aware of a situation that appears to be an opportunity for people to display favoritism to
relatives, one should contact the Department Head or Human Resources Department.
 Employees will not be part of the hiring process of their relatives

DEFINITION OF RELATIVES:
Relatives would include husband, wife, children, parents, sisters, brothers, first cousins, brothers-in-law,
sisters-in-law, mother –in-law, and father-in-law.
Employees who are aware of candidature of their relatives for the organization must immediately report to
the HR function in writing for information and records. Failure to immediately report such cases will be
considered as a serious violation of the recruitment policy and may entail a disciplinary action.

INTERNSHIP PROGRAM:
pppppAs part of university hire program, HDFC will provide internship opportunities to students. Such
internships will provide opportunities to students to learn while making real contributions to the company.
HDFC will follow the following process:
• HR will coordinate with business groups to identify potential opportunities for intern hires.
• Internship requests could be received either from the students directly or as nominations from the
educational institute.
• HR and hiring manager to tele-interview the candidates with subsequent personal interviews in the
office
• HR to coordinate with the hiring manager to develop the project plan for the hire
Based on the demonstrated capability, the intern will be provided with the opportunity to work in
multiple departments to gain a wider business understanding
INTERNSHIP CRITERIA:
 Typically, the intern will be a pre-final year student of the Bachelor or Master degree programs
specializing in Financial Services/IT and any other business stream as required.
 Interns will be expected to manage their won accommodation and it will not be provided by the
company.
 Intern will be required to sign the confidentiality and code of conducts documents of the company.
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EMPLOYEE ON-BOARDING – PROCESS:
The overall purpose of the new hire integration process is to ensure that the new employee is able settle in
smoothly and is able to contributing at the earliest.

PRE EMPLOYMENT INDUCTION:

HDFC’s employee induction process shall begin as per the employee accepts the job offer. The process
includes:
 Welcome pack: As soon as the candidate accepts the offer, a welcome pack will be sent to the
employee.
o A congratulatory note regarding the decision to join the organization.
o Contact details of a HR representative and the hiring manager.
o A brief company overview document.
 Pre-joining checklist: Include details of the documents required from the employee. In case the
employee is relocating from a different location, details of the relocation process and the visa
requirement will be outlined in this checklist.
 Expectations on the first day of the joining.
 Office resources: HR shall intimate the immediate supervisor the joining date and immediate
supervisor shall work with the IT and administration team to set up the following 5 days prior to
employee joining, the following elements and are in working order: Email ID, phone, computing
resources, work space/office, access cards, joining kit including bank account opening form, initial
reading material.

POST JOINING ORIENTATION AND INDUCTION:

 Joining kit: The employee upon joining would be welcomed by the HR representative and would be
given a joining kit that will include: Access card, information on employee’s email and phone
number, Bank account opening form, corporate insurance application form(if applicable),HR &
Admin policy manual, other relevant reading material ( to be prepared by hiring manager)
 Classroom Induction: The employee integration process will also include classroom training and
induction where the employee will receive presentations and trainings on various topics that would
further ingrain the into the organization
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  On the job training: Besides formal training sessions, the employee will undergo on-the-job
function specific trainings that are facilitated by the respective functions to help the new employee
acquaint himself/herself with work in progress.

Chapter-6:- FINDINGS
SUGGESTIONS AND Conclusion

FINDINGS

 Recruitment at an officer and managerial level is not done effectively.

 Many people in the organization today are in the wrong jobs and as a result, they are not utilizing
their full potential.
 Hiring people based on personal connections when the person is not qualified for the job.
 Most recruitment that involves managers is done during discussions at lunch hour, at social clubs or

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 during the coffee break time.
 Inadequate recruitment procedures resulted in a number of staff not being sufficiently qualified either
for the positions they hold or their grades levels, especially in management positions.
 Psychometric test is not conducted during the selection process.
 Confusion in the designation and level to the employees even after permanent status for employment
is given.
 Proper training is not given to the recruitment team and manager.
 Reaching few prospects due to internal recruitment, internet advertising most of the time.

SUGGESTIONS FOR THE IMPROVEMENT OF THE

SYSTEM AND PRACTICES OF RECRUITMENT AND
SELECTION PROCEDURE

The following are the suggestions r received from the respondents of the questionnaire.
These suggestions are based on their awareness regarding the Recruitment and Selection
procedure.
1) During the selection process not only the experienced candidates but also the
fresh candidate should be selected so as to avail the innovation and
enthusiasm of newcandidates.
2) In the organization where summer training facility prevailing then such kind
of practices must be adopted so that the student can learn and again from their
practicalviews.
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 3) Candidatesshouldbekeptonthejobforsometimeperiod;ifsuitabletheyshouldbe
recruited.Duringtheselectionprocess,thecandidatesshouldbemaderelaxedandat
ease.
4) Company should follow all the steps of recruitment and selection for the
selectionof thecandidates.
5) Selection process should be less timeconsuming.
6) The interview should not be boring, monotonous. It should be made interesting.
There must be proper communication between the I interviewer and the I
interviewees any the time ofinterview.
7) Evaluation and control of recruitment and selection should be done fairjudgment.
8) Methods used for selection of candidates should be done carefully and
systematically
9) The attainment of goals and objective of any organization depend on the type
and
10) qualityofitsmanpower.Tohaverighttypeofmenatrightjobandatrighttime,the
11) recruitment and selection procedure should be fair andimpartial.

12) This is indeed an important suggestion and authorities concerned should

immediately
13) look into it and try to implement it.

CONCLUSION

 Recruitment is essential to effective Human Resources Management. It is the heart of

the whole HR systems in the organization. The effectiveness of many other HR

activities, such as selection and training depends largely on the quality of new

employees attracted through the recruitment process.

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  Policies should always be reviewed as these are affected by the changing environment.

Management should get specific training on the process of recruitment to increase

their awareness on the dangers of wrong placements.

 Effective recruitment is important in achieving high organizational performance and

minimizing labor turnover. As of now HDFC Bank Ltd. has a team of effective human

resource which is efficiently managing the organization at its best. Though the

recruitment process adopted by the organization needs to be improved,.

REFRENCES

BOOKS REFFERED:
 ASWATHAPPA, K. (2009), Human Resource Management
 DESSLER, GARY (2008), Human Resource Management
 ROBBINS, STEPHEN P.,(2008) “Organizational Behaviour” of Prentice Hall of India
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 (New Delhi)
 CHHABRA , T. N.,(2008), Human Resource Management

WEBSITES REFFERED:
 http://en.wikipedia.org/wiki/HDFC_Bank
 http://business.mapsofindia.com/banks/hdfc-bank-branches/
 http://business.mapsofindia.com/banks-in-india/hdfc.html/
 http://www.slideshare.net/vin4a/recruitment-and-selection-at-hdfc

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