A SUMMER TRAINING REPORT IN RECRUITMENT AND RETENTION STRATEGY ON ICICI BANK SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY, HISAR. TRAINING SUPERVISOR : SUBMITTED BY: MR. ___________________ MR. ___________________ DESIGNATION ENROLLMENT NO. ______ SESSION : 2008 – 2011 GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY HISAR
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A SUMMER TRAINING REPORT IN
RECRUITMENT AND RETENTION STRATEGY ON ICICI BANK
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY, HISAR.
TRAINING SUPERVISOR : SUBMITTED BY:
MR. ___________________ MR. ___________________DESIGNATION ENROLLMENT NO. ______
SESSION : 2008 – 2011
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGYHISAR
ACKNOWLEDGEMENTS
A lot of effort has gone into this training report. My thanks are due to many people with
whom I have been closely associated.
I would like all those who have contributed in completing this project. First of all, I would
like to send my sincere thanks to MR. ______________ for his helpful hand in the
completion of my project.
I would like to thank my entire beloved family & friends for providing me monetary as well
as non – monetary support, as and when required, without which this project would not have
completed on time. Their trust and patience is now coming out in form of this thesis.
EXECUTIVE SUMMARY
On the HR front, productivity can be improved by ensuring that the organization attracts the
best talent at the lowest possible cost. This objective translates in to the adoption of the best
recruitment and selection methods and instituting measures to retain and develop them.
Further, a quantitative measurement or recruitment and selection effectiveness has to be
conducted to prove one’s point with respect to qualitative measure to improve HR
effectiveness, the field in still in its nascent stage. The objective of this study is to measure
the Recruitment and Selection practices and strategies in ICICI . The primary objective is to
analyze how the overall recruitment and selection is done in the company during the year.
The primary objective is well supported by a secondary objective which aims at the in-depth
study of those procedures which affects the Recruitment and Selection practices.
TABLE OF CONTENTS
CONTENTS Page Number
Chapter 1 - Introduction
1.1. Overview of Industry as a whole 1.2. Profile of the Organization 1.3. Problems of the Organization 1.4. Competition Information 1.5. S.W.O.T Analysis of the Organization
Chapter 2 - Objective & Methodology
2.1. Significance
2.2. Managerial usefulness of the study
2.3. Objectives
2.4. Scope of the study 2.5. Methodology -
Chapter 3 – Conceptual Discussion
Chapter 4 - Data Analysis
Chapter 5 - Findings and Recommendations - # -
ANNEXURES
BIBLIOGRAPHY
INTRODUCTION
TO
INDUSTRY
INTRODUCTION TO THE INDUSTRY
INDUSTRY PROFILE
Evolution of Indian Banking Industry
Organised banking was active in India since the establishment of the General Bank of India
in 1786. After independence, the Reserve Bank of India (RBI) was established as the central
bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by
the government to form state-owned State Bank of India (SBI). RBI had undertaken an
exercise to merge weak banks to strong banks and the total number of banks thus reduced
from 566 in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting
the credit needs of all sections of people, the government nationalised 14 large banks in 1969
followed by another 6 banks in 1980. This period saw enormous growth in the number of
branches and the banks’ branch network became wide enough to reach the weakest sections
of the society in a vast country like India. The economic reforms unleashed by the
government in early nineties included banking sector too, to a significant extent. Entry of new
private sector banks was permitted under specific guidelines issued by RBI. A number of
liberalisation and de-regulation measures aimed at consolidation, efficiency, productivity,
asset quality, capital adequacy and profitability have been introduced by the RBI to bring
Indian banks in line with International best practices.
The Current Scenario
Currently there are 222 banks in India operating through 68,681 branches. In the past few
years, the country has seen the advent of a plethora of private and foreign banks in a land
which was once dominated by the public sector banks. This has further intensified
competition in an industry where products are getting harder to differentiate and customer
retention even more difficult.
The present day demands of customers of banks are so ever increasing that bankers are
constantly on the look out for better products and maximising service quality in their
customer outlets. To put it in other words banks are constantly in search of Product
Innovation and Process Innovation to satiate the demands of their clientele and thereby offer
superior ‘customer service’.
2. DEFINING CUSTOMER, SERVICE & CUSTOMER SERVICE
Who is a customer?
The word customer has been derived from "custom," meaning, "habit”. As per the literal
meaning, a customer is someone who is in the habit of buying or receiving goods or services
from the same business organisation. But in today’s world it has much more meaning than the
old one. A customer is someone who makes use of or receives the products or services from
an individual or organization. In a general term a customer is a person who has some regular
commercial dealing.
Incase of banks, a customer is a person who has an account with the bank. As per Section 131
of Negotiable Instruments Act, a bank gets protection when it collects instruments (cheque,
draft etc) for and on account of his customer. And for a person to deposit cheque or
instrument, he has to have an account. Therefore, for a person to be a customer of a bank he
has to have an account relationship with the bank. However, in the present changing scenario
when the extent scope of banking is enlarging, this definition of having an account appears to
be very narrow. Banks provide many services for which account relationship is not at all
required, say for example for purchasing a bankers cheque, demand draft or travelers cheque.
In the modern era, banks are making use of print and other technological media for
advertisement of their products and services. These are the offers to masses for making use of
their multiple products. Therefore, the definition of a customer has widened, and he can be
broadly classified in to three categories.
1. Those who have account relationship with bank.
2. Those who do not have account relationship, but use the services provided by banks.
3. Those who have been motivated to deal with banks by advertisement, personal contacts
etc., they are prospective customers.
What is service?
Service is an activity or benefit that one party offers to another that is essentially intangible
and does not result in the ownership of any thing. It is nothing but selling of satisfaction. It is
a feeling, which a person gets while dealing with an organisation. It can be experienced but
cannot be seen. Services are people based, therefore they are highly variable and inseparable
from the source i.e. employees. It is about people thinking about taking care of people. In
economics and marketing, a service is the non-material equivalent of goods. Service is an
ongoing process.
What is Customer Service?
Customer service is the set of behaviours that a business undertakes during its interaction
with its customers. It is the degree of assistance and courtesy granted to those who patronize
the organization. It is identification of customers’ needs and expectations and what
constitutes positive customer satisfaction. It also includes the codes of ethics, etiquette,
behaviour and courtesy.The Service Triangle
This service triangle is the part of the service delivery process. It simply shows that every
organization ‘makes promises’ to its customers. It will be is possible for the providers of an
organization to ‘keep promises’ only when the organization ‘enables it.’ i.e. it is the
management’s/company’s initiative to reach for the highest form of service by making it
possible for the working team/management to fulfill the promises made.
In the era of technologically backed competition, awareness level of customers is increasing
day by day. Customers have wider choice of products and services. Expectations of
Organization
“Enabling promises”
“Making promises”
CustomersProviders “Keeping promises”
customers from banks are increasing. The concept of generation to generation banking has
also undergone changes. Customers’ loyalty is conditioned by the quality of products and its
delivery mechanism i.e. service. All these have necessitated the banks to provide better and
excellent customer service.
3. KEY FACTORS & TRENDS FOR CUSTOMER SERVICE IN BANKS
A. Human Resource – Extending the Personal Touch in Customer Service
Quality services can be provided by quality people and quality people can be carved by
quality human resource personnel and the quality human resource personnel are made by the
pro-active human resource management policies/practices. The quality of service determines
the market share. Quality is the watchword in the present day environment. A common man
in India having developed awareness about quality and banking system is no exception. The
new private and foreign banks are laying total emphasis on the quality, innovation and
convenience. As a result of which, they have been able to penetrate into market share of
public sector banks. This has also increased the aspirations and expectations of the bank
customers who expect similar services from all banks. The emotional loyalty has given place
to the convenience and cost of services, which the bank can provide. It is apprehended that if
public sector banks fail to meet the quality standard, they are likely to slip further in terms of
their market share. The quality and cost of services shall be the guiding factor for future
growth. Banking is a service industry and delivers its service across the counter to the
ultimate customer. The activities of banking industry are all about relationship. Hence,
human resource assumes a very important role in the banking industry for providing better
services to the customer with a smile in order to cultivate and maintain long lasting
relationship with their customers. Not-withstanding the level of technology, banking is
primarily a labour intensive service sector. Hence it will not be possible for the banks to
sustain effectiveness unless human resource management is given prime importance because
the technology is only an aid to human-effort and not a substitute thereof. A customer deals
with people who work in the bank premises. He does business only with people. The person
dealing with the customer has therefore to create positive impressions that are memorable and
those garners respect admiration and help in building confidence. Staff members have to
realise that every interaction with customer is an opportunity to make positive impact on him.
They have therefore to understand that "What you do not want done to yourself, do not do to
others” Confucius. Once we keep in mind the saying of Confucius it will automatically result
in improvement in the services.
Satisfaction and expectations move together. We cant’s deny that during the yester decades,
there have been multi-dimensional changes in the business environment which has shown a
major impact on our lifestyles. We find a direct impact of disposable income on the
discretionary income. Here it is essential to make it clear that disposable income is that
portion of the income which is left in our hands after discharging the tax liability and the
discretionary income is that portion of the disposable income which is in our hands after
incurring the essential expenses, specially for managing food, shelter, clothing, basic
educational band medical aids. It is really the discretionary income which affects the banking
business since the income is either spent on luxury items for managing the comfortable living
conditions or invested with the motto of earning interest and dividend. It is against this
background that upward trend in discretionary income creates a sound nexus or a conductive
environment for the development of banking business, specially the mobilization of savings
and deposits.
In the past, the commercial banks did not find any attraction in the Indian economy because
of the meager business prospects-and the low level of income vis-à-vis the stagnating
economic activities. Of late, we find good auguries and feel that the Indian economy is
moving ahead on the right path which would make the business environment more
conductive. No doubt in it that the national development policy has made possible such a
positive change in the business environment that the intensity of competition is found at its
peak. Just after the beginning of the decade 1990s, we have witnessed a basic change in the
attitude of the policy makers which has compelled almost all the organizations either
producing goods or generating services to innovate their policy decisions. This in a natural
way has necessitated a need more professional excellence so that a stage of fierce competition
is accepted as a challenge and necessary steps are taken to excel competition, increase the
market share and establish leadership.
COMPANY PROFILE
History of Standard Chartered Bank
The Standard Chartered Group was formed in 1969 through a merger of two banks: The
Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India,
Australia and China, founded in 1853.
Reserve Bank of India
Commercial Banks Co-operative Banks Development Banks
Nationalized Private Short-term credit
Long-term credit
Agricultural Credit Urban Credit
EXIM Industrial Agricultural
Both companies were keen to capitalise on the huge expansion of trade and to earn the
handsome profits to be made from financing the movement of goods from Europe to the East
and to Africa.
The Chartered Bank
Founded by James Wilson following the grant of a Royal Charter by Queen Victoria
in 1853.
Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in
1858, followed by Hong Kong and Singapore in 1859.
Traditional business was in cotton from Mumbai (Bombay), indigo and tea from
Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and
silk from Yokohama.
Played a major role in the development of trade with the East which followed the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in
1871.
In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's
Cyprus Branches. This established a presence in the Gulf.
Organizational Structure of Banks in India:
In India banks are classified in various categories according to differ rent criteria. The
following charts indicate the banking structure:
Broad Classification of Banks in India:
1) The RBI: The RBI is the supreme monetary and banking authority in the country and
has the responsibility to control the banking system in the country. It keeps the
reserves of all scheduled banks and hence is known as the “Reserve Bank”.
2) Public Sector Banks:
State Bank of India and its Associates (8)
Nationalized Banks (19)
Regional Rural Banks Sponsored by Public Sector Banks (196)
(3) Private Sector Banks:
Old Generation Private Banks (22)
Foreign New Generation Private Banks (8)
Banks in India (40)
(4) Co-operative Sector Banks:
State Co-operative Banks
Central Co-operative Banks
Primary Agricultural Credit Societies
Land Development Banks
State Land Development Banks
In addition to its traditional central functions, the Reserve bank has certain non-monetary
functions of the nature of supervision of banks and promotion of sound banking in India. The
Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide
powers of supervision and control over commercial and cooperative banks, relating to
licensing and establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction and liquidation. The RBI is authorized to
carry out periodical inspections of the banks and to call for returns and necessary information
from them. The nationalization of 14 major Indian scheduled banks in July 1969 has imposed
new responsibilities on the RBI for directing the growth of banking and credit policies
towards more rapid development of the economy and realization of certain desired social
objectives. The supervisory functions of the RBI have helped a great deal in improving the
standard of banking in India to develop on sound lines and to improve the methods of their
operation.
INTRODUCTION
TO
COMPANY
INTRODUCTION TO THE COMPANY
ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at
March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs.
1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension
counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom and Canada,
branches in Singapore and Bahrain and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in
India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and
its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct
and Ethics for its directors and employees. At April 4, 2005, ICICI Bank, with free float
market capitalization of about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all
the companies listed on the Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses. In the 1990s,
ICICI transformed its business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.
CORPORATE SOCIAL RESPONSIBILITY
SOCIAL INITIATIVES GROUP (SIG) :
ICICI Bank's social sector initiatives aim to resolve some of the most fundamental
developmental problems facing India today. Its involvement is primarily in terms of non-
commercial support to fill knowledge and practice gaps in specific thematic areas— Early
Child Health, Elementary Education and Micro Financial Services.
SIG interactive platform that seeks to:
Bring together participants in the development process to widen and deepen the
discourse informing development practice. Interactive features include discussion
boards and facilities to post papers, articles or other resources.
Publish research related to innovations and significant problems within the identified
thematic areas.
Enable online application for funding.
MISSION STATEMENT OF SIG
The mission statement of the SIG is "to identify and support initiatives designed to improve
the capacities of the poorest of the poor to participate in the larger economy". The SIG
believes that the three fundamental capacities any individual should possess to be able to
participate in the larger economy are in the areas of health, education and access to basic
financial services. Within these broad areas, infant health at birth, elementary education and
micro financial services define the areas in which the SIG’s work focuses
At a very basic level, the programmes and projects supported by the SIG are required to cater
to the poorest. They should enable them to become active and informed participants in socio-
economic processes as opposed to passive observers. These initiatives must be output
oriented, with a focus on producing measurable outcomes that meet a minimum quality
requirement. The initiatives also need to be cost-effective. This is in recognition of the fact
that resources are limited and their efficient use is imperative if the maximum number is to
benefit. Cost-effectiveness also facilitates the adoption of the initiative in other contexts.
The initiative must be scalable. Scalability implies the ability to draw upon important
elements of a programme and adapt them to suit the needs of a specific situation. It should be
possible to do so at a national level. Even if the programme itself is not directly scaleable, it
should be possible to take away significant lessons from it in order to enrich work in other
settings.
All supported initiatives should have the potential for both near and long-term impact.
Consequentially, it is important that the impact of these programmes, in the near and long
term, be carefully understood and analyzed in a rigorous manner and not through anecdotes.
It is critical to clearly understand how an initiative is performing in terms of its
predetermined goals and in comparison to alternatives. There is little doubt that a complex of
factors, very often beyond the control of the programme/ organization, will influence the
outcome. Yet, serious and regular impact analysis can only make the programme richer and is
essential. The SIG assigns greater value to programmes/ organizations that carefully examine
the short-term and long-term implications of their actions.
In pursuit of its goals in the three focus areas, the SIG tends to support reasonably large-sized
initiatives so that issues such as cost-effectiveness, scalability and impact assessment can be
dealt with more directly. These initiatives not only have the potential to provide key research
inputs to other programmes, but also tend to have a large impact that benefits the
communities they work with. The approach of the SIG may thus be characterized more
broadly as ‘action research’, to distinguish it from pure academic research. However, in its
research work and impact assessment, the SIG seeks to adhere to the highest standards of
academic rigour. It often works in partnership with academic institutions such as Institute of
Rural Management Anand, KEM, Massachusetts Institute of Technology, Tata Institute of
Social Sciences, University of California, Berkeley and the University of Southampton.
It is crucial that the programmes supported by SIG be time-bound. This lends clarity to the
aim of the programme and prevents its intent from getting diluted over time.
The SIG works by identifying gaps in knowledge and practice in its focus areas and locating
initiatives that address these gaps in a manner consistent with the SIG’s mission. The
identification of research needs is followed by an in-depth analysis of the short-term and
long-term implications of various forms of action. Among other things, this requires taking a
comprehensive overview of work already done in the country and outside. The SIG, thus,
seeks to answer certain fundamental questions in its focus areas through the projects it
supports and, thereby, contribute to findings that help the sector. It should be pointed out that
the SIG does not function as a rollout agency.
An important feature of the SIG’s strategy is the belief in strengthening or supplementing
existing systems, rather than investing in parallel structures. Another key element of its
strategy is the building of long-term relationships with suitable partners. As part of this effort,
the SIG works actively to improve the efficacy of these partners and ensure sustained impact.
In pursuit of its goals, the SIG seeks to work actively with research agencies, Non-
Governmental Organisations (NGOs), Corporates, Government departments, local
stakeholders and international organisations. It should also be noted that the group believes
modern technologies, particularly Information and Communication Technologies (ICT) can
prove to be important facilitators if used appropriately.
FOCUS AREAS OF SIG
The SIG has three focus areas:
Early Child Health
Elementary Education
Micro Financial Services
Health: Early Child Health
This focus seems to have the potential for maximum long and short-term impact and appears
achievable in the most cost-effective and therefore scaleable manner.ICICI Bank aims to
improve individual capacity by impacting two important indicators of chronic undernutrition
in the first three years at the national level:
Proportion of babies born with a birth weight of less than 2.5 kg at or beyond 37
weeks of gestation (Intra-Uterine Growth retardation, IUGR)
Proportion of children under three years who are stunted.
Education: Elementary Education
Education (and not just literacy) up to the elementary level seems to be almost a necessary
condition for any individual (rich or poor) to be able to participate in any manner in the larger
economy Here the goal is to work towards the universalisation of elementary education all
across India, rural and urban, with a substantial difference being made by 2010. The goal
focuses on retention in school and learning achieved.