Introduction The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the recruitment strategic advantage for the organisations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. The objective of the study is to analyze the actual recruitment practices followed at State Bank Of India and to evaluate how far this process confirm to the purposes underlying the operational aspects of the industry. The study on recruitment highlights on the need of recruitment in the bank. Human resource is most valuable asset in the organization. Profitability of the organization depends on its utilization. Proper utilization
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Transcript
Introduction
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the recruitment strategic advantage for the
organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and
requires many resources and time.
The objective of the study is to analyze the actual recruitment practices
followed at State Bank Of India and to evaluate how far this process confirm
to the purposes underlying the operational aspects of the industry. The study
on recruitment highlights on the need of recruitment in the bank.
Human resource is most valuable asset in the organization. Profitability of
the organization depends on its utilization. Proper utilization leads to profit
maximization. So, right man should be procured at right place and in right
time, otherwise their proper utilization may not be done. And for this job
description and person specification is very essential. SBI procures
manpower in a very specific manner with the use of documents like job
analysis, job description and specification. It has got two steps of selection-
aptitude test and final interview.
The centralized form of recruitment is being followed here.
To identify the recruitment process at SBI Sitapur.
To understand different field in banking sector.
To understand banking sector in India
To understand need of recruitment process for different posts and
eligibility required.
To understand the need and importance to recruitment process.
To find merits and demerits of Recruitment process done at SBI,
Sitapur.
To study the recruitment steps followed for hiring.
To understand the theory underpinning recruitment methods.
To ascertain whether the practices are ideal enough or need any
change for betterment in this changing scenario.
SCOPE OF THE STUDY
It provides a complete knowledge of various fundamental concept
related to recruitment practices.
It extends to the whole of the organization and gives a way to
improvement if any required for better talent acquisition.
LIMITATIONS
Data collected is based on a short interview taken
The research exercise was conducted within a limited duration.
So a detailed study could not be made.
The findings and conclusions are based on knowledge and of the
respondent.
Lack of support from the management side while data collection due
to their policy of maintaining secrecy.
RESEARCH METHODOLOGY
RESEARCH
“Research is an organized inquiry designed and carried out to provide
information for solving a problem.”
--Fred Kerlinger
RESEARCH DESIGN
Research design can be thought of as the structure of research- it is the
“glue” that holds all of the elements in a research project- the samples or
groups, measures, treatments or programs, and methods of assignment- work
together to tryto address the central research questions. For this research
exploratory designhas been chosen.
METHODOLOGY
Methodology is the procedure employed by researchers in conducting
research operations. As far as primary data is concerned, a detailed
questionnaire has been formulated and filled up by the employees; the
careful analysis of the data is done to arrive at conclusions.
Research type- Exploratory
Data type: - primary and secondary data
Sample collection- 30 employees of SBI, Sitapur branch
Sample location- State bank of India, Sitapur(Main Branch)
Instrument- Interview method
SOURCES OF DATA
The data has been collected in two ways:
PRIMARY DATA
Primary data is the type of data that is collected for the first time and is
original in character. Hence, for this study, primary data has been collected
directly from the deputy manager and a few employees through an
interview.
SECONDARY DATA
Thedata that has been collected by others is called secondary data. The
secondary source of information has been collected from company’s internal
sources like brochures, books and the websites.
INTRODUCTION TO
BANKING SECTOR IN INDIA
A bank is an institution that deals in money and its substitutes and
provides other financial services. Banks accept deposits and make
loans or make an investment to derive a profit from the difference
in the interest rates paid and charged, respectively.
In India the banks are being segregated in different groups. Each
group has their own benefits and limitations in operating in India.
Each has their own dedicated target market. Few of them only
work in rural sector while others in both rural as well as urban.
Many even are only catering in cities. Some are of Indian origin
and some are foreign players.
India’s economy has been one of the stars of global economics in
recent years. It has grown by more than 9% for three years
running. The economy of India is as diverse as it is large, with a
number of major sectors including manufacturing industries,
agriculture, textiles and handicrafts, and services. Agriculture is a
major component of the Indian economy, as over 66% of the
Indian population earns its livelihood from this area. Banking
sector is considered as a booming sector in Indian economy
recently. Banking is a vital system for developing economy for the
nation. However, Indian banking system and economy has been
facing various challenges and problems which have discussed in
other parts of project.
INDIAN BANKING SYSTEM
Without a sound and effective banking system in India it
cannot have a healthy economy. The banking system of India
should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system
has several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This
is one of the main reasons of India's growth process. The
government's regular policy for Indian bank since 1969 has paid
rich dividends with the nationalization of 14 major private banks of
India.
Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own
money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two
days. Now it is simple as instant messaging or dial a pizza. Money
has become the order of the day.
The first bank in India, though conservative, was established
in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases. They are as
mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to
Indian banking sector Reforms.
New phase of Indian Banking System with the advent of
Indian Financial & Banking Sector Reforms after 1991.
After 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the
liberalization of banking practices. The country is flooded with
foreign banks and their ATM stations. Efforts are being put to give
a satisfactory service to customers. Phone banking and net banking
is introduced. The entire system became more convenient and
swift. Time is given more importance than money. This resulted
that Indian banking is growing at an astonishing rate, with Assets
expected to reach US$1 trillion by 2010.
Company Profile
ABOUT SBI
The Bank is actively involved since 1973 in non-profit activity called
Community Services Banking. All our branches and administrative offices
throughout the country sponsor and participate in large number of welfare
activities and social causes. Our business is more than banking because we
touch the lives of people anywhere in many ways.
BOARD OF DIRECTORS
(As on 13th January 2010)
Sr. No. Name of Director
1.Shri O.P. BhattChairman
2.Shri S.K. BhattacharyyaMD & CC&RO
3.Shri R. SridharanMD & GE(A&S)
4. Dr. Ashok Jhunjhunwala5. Shri Dileep C. Choksi6. Shri S. Venkatachalam7. Shri. D. Sundaram8. Dr. Deva Nand Balodhi9. Prof. Mohd. Salahuddin Ansari10. Dr.(Mrs.) Vasantha Bharucha11. Dr. Rajiv Kumar12. Shri Arun Ramanathan13. Smt. Shyamala Gopinath
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the country’s oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is
today going through a momentous phase of Change and Transformation –
the two hundred year old Public sector behemoth is today stirring out of its
Public Sector legacy and moving with an agility to give the Private and
Foreign Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups –
Pension Funds, General Insurance, Custodial Services, Private Equity,
Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services,
structured products etc – each one of these initiatives having a huge potential
for growth.
The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast
untapped potential in the hinterland and proposes to cover 100,000 villages
in the next two years.
It is also focusing at the top end of the market, on whole sale banking
capabilities to provide India’s growing mid / large Corporate with a
complete array of products and services. It is consolidating its global
treasury operations and entering into structured products and derivative
instruments. Today, the Bank is the largest provider of infrastructure debt
and the largest arranger of external commercial borrowings in the country. It
is the only Indian bank to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern
customer friendly processes to help improve the total customer experience.
With about 8500 of its own 10000 branches and another 5100 branches of its
Associate Banks already networked, today it offers the largest banking
network to the Indian customer. The Bank is also in the process of providing
complete payment solution to its clientele with its over 8500 ATMs, and
other electronic channels such as Internet banking, debit cards, mobile
banking, etc.
With four national level Apex Training Colleges and 54 learning Centres
spread all over the country the Bank is continuously engaged in skill
enhancement of its employees. Some of the training programes are attended
by bankers from banks in other countries.
The bank is also looking at opportunities to grow in size in India as well as
Internationally. It presently has 82 foreign offices in 32 countries across the
globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP
Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a
formidable group in the Indian Banking scenario. It is in the process of
raising capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old
mindsets, attitudes and take all employees together on this exciting road to
Transformation. In a recently concluded mass internal communication
programme termed ‘Parivartan’ the Bank rolled out over 3300 two day
workshops across the country and covered over 130,000 employees in a
period of 100 days using about 400 Trainers, to drive home the message of
Change and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public Sector
Organizations seeking to emulate the programme.
EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in
Calcutta on 2 June 1806. Three years later the bank received its charter and
was re-designed as the Bank of Bengal (2 January 1809). A unique
institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank
of Madras (1 July 1843) followed the Bank of Bengal. These three banks
remained at the apex of modern banking in India till their amalgamation as
the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into
existence either as a result of the compulsions of imperial finance or by the
felt needs of local European commerce and were not imposed from outside
in an arbitrary manner to modernise India's economy. Their evolution was,
however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both
the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic framework.
Bank of Bengal H.O.
Establishment
The establishment of the Bank of Bengal marked the advent of limited
liability, joint-stock banking in India. So was the associated innovation in
banking, viz. the decision to allow the Bank of Bengal to issue notes, which
would be accepted for payment of public revenues within a restricted
geographical area. This right of note issue was very valuable not only for the
Bank of Bengal but also its two siblings, the Banks of Bombay and Madras.
It meant an accretion to the capital of the banks, a capital on which the
proprietors did not have to pay any interest. The concept of deposit banking
was also an innovation because the practice of accepting money for
safekeeping (and in some cases, even investment on behalf of the clients) by
the indigenous bankers had not spread as a general habit in most parts of
India. But, for a long time, and especially upto the time that the three
presidency banks had a right of note issue, bank notes and government
balances made up the bulk of the investible resources of the banks.
The three banks were governed by royal charters, which were revised from
time to time. Each charter provided for a share capital, four-fifth of which
were privately subscribed and the rest owned by the provincial government.
Group Photogaph of Central Board (1921)
Business
The business of the banks was initially confined to discounting of bills of
exchange or other negotiable private securities, keeping cash accounts and
receiving deposits and issuing and circulating cash notes. Loans were
restricted to Rs.one lakh and the period of accommodation confined to three
months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a
perishable nature' and no interest could be charged beyond a rate of twelve
per cent. Loans against goods like opium, indigo, salt woollens, cotton,
cotton piece goods, mule twist and silk goods were also granted but such
finance by way of cash credits gained momentum only from the third decade
of the nineteenth century. All commodities, including tea, sugar and jute,
which began to be financed later, were either pledged or hypothecated to the
bank. Demand promissory notes were signed by the borrower in favour of
the guarantor, which was in turn endorsed to the bank. Lending against
shares of the banks or on the mortgage of houses, land or other real property
was, however, forbidden. Indians were the principal borrowers against
deposit of Company's paper, while the business of discounts on private as
well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three
banks, as far as the government was concerned, was to help the latter raise
loans from time to time and also provide a degree of stability to the prices of
government securities.
Old Bank of Bengal
Major change in the conditions
A major change in the conditions of operation of the Banks of Bengal,
Bombay and Madras occurred after 1860. With the passing of the Paper
Currency Act of 1861, the right of note issue of the presidency banks was
abolished and the Government of India assumed from 1 March 1862 the sole
power of issuing paper currency within British India. The task of
management and circulation of the new currency notes was conferred on the
presidency banks and the Government undertook to transfer the Treasury
balances to the banks at places where the banks would open branches. None
of the three banks had till then any branches (except the sole attempt and
that too a short-lived one by the Bank of Bengal at Mirzapore in 1839)
although the charters had given them such authority. But as soon as the three
presidency bands were assured of the free use of government Treasury
balances at places where they would open branches, they embarked on
branch expansion at a rapid pace. By 1876, the branches, agencies and sub
agencies of the three presidency banks covered most of the major parts and
many of the inland trade centres in India. While the Bank of Bengal had
eighteen branches including its head office, seasonal branches and sub
agencies, the Banks of Bombay and Madras had fifteen each.
Bank of Madras Note Dated 1861 for Rs.10
SBI's Retail Banking
State Bank of India offers a wide range of services in the Personal Banking Segment
which are indexed here.
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property
SBI Housing Loan Loan Against Shares & Debentures
SBI Car Loan Rent Plus Scheme
SBI Educational Loan Medi-Plus Scheme
SBI Personal Loan Rates Of Interest
DEPOSIT SCHEMES
All branches, are fully computerised, and realise the advantage of our vast
network. Place funds in Multi Option Deposit Scheme, a term deposit which
is not fixed at all and comes with a unique break-up facility which provides
you full liquidity as well as benefits of higher rates of returns, through your
savings bank account. Alternately, keep that deposit intact by availing an
overdraft facility, to meet your occasional temporary funds requirements.
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
The recruitment process is immediately followed by the selection process
i.e. the final interviews and the decision making, conveying the decision
and the appointment formalities.
The human resources are the most important assets of an organization.
The success or failure of an organization is largely dependent on the caliber
of the people working therein. Without positive and creative contributions
from people, organizations cannot progress and prosper. In order to achieve
the goals or the activities of an organization, therefore, they need to recruit
people with requisite skills, qualifications and experience. While doing so,
they have to keep the present as well as the future requirements of the
organization in mind.
Recruitment is distinct from Employment and Selection. Once the
required number and kind of human resources are determined, the
management has to find the places where the required human resources
are/will be available and also find the means of attracting them towards the
organization before selecting suitable candidates for jobs. All this process is
generally known as recruitment. Some people use the term “Recruitment”
for employment. These two are not one and the same. Recruitment is only
one of the steps in the entire employment process. Some others use the term
recruitment for selection. These are not the same either. Technically
speaking, the function of recruitment precedes the selection function and it
includes only finding, developing the sources of prospective employees and
attracting them to apply for jobs in an organization, whereas the selection is
the process of finding out the most suitable candidate to the job out of the
candidates attracted (i.e., recruited).Formal definition of recruitment would
give clear cut idea about the function of recruitment.
DEFINITIONS
Recruitment is defined as, “a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient workforce.” Edwin B. Flippo
defined recruitment as “the process of searching for prospective employees
and stimulating them to apply for jobs in the organization.” Recruitment is a
‘linking function’-joining together those with jobs to fill and those seeking
jobs. It is a ‘joining process’ in that it tries to bring together job seekers and
employer with a view to encourage the former to apply for a job with the
latter.
In order to attract people for the jobs, the organization must
communicate the position in such a way that job seekers respond. To be cost
effective, the recruitment process should attract qualified applicants and
provide enough information for unqualified persons to self-select themselves
out.
Thus, the recruitment process begins when new recruits are sought
and ends when their applications are submitted. The result is a pool of
applicants from which new employees are selected.
PURPOSES AND IMPORTANCE
The general purpose of recruitment is to provide a pool of potentially
qualified job candidates. Specifically, the purposes are to:
Determine the present and future requirements of the organization in
conjunction with its personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the
number of visibly, under qualified or overqualified job applicants.
Help reduce the probability that job applicants, once recruited and
selected, will leave the organization only after a short period of time.
Begin identifying and preparing potential job applicants who will be
appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.
Develop an organizational culture that attracts competent people to
the company.
Search or head hunt/head pouch people whose skills fit the company’s
values.
Devise methodologies for assessing psychological traits.
Search for talent globally and not just within the company.
Design entry pay that competes on quality but not on quantum.
Anticipate and find people for positions that do not exist yet.
Increase organizational and individual effectiveness in the short term
and long term.
Evaluate the effectiveness of various recruiting techniques and
sources for all types of job applicants.
Recruitment represents the first contact that a company makes with
potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work
for it. A well-planned and well-managed recruiting effort will result in high-
quality applicants, whereas, a haphazard and piecemeal effort will result in
mediocre ones. High-quality employees cannot be selected when better
candidates do not know of job openings, are not interested in working for the
company and do not apply. The recruitment process should inform qualified
individuals about employment opportunities, create a positive image of the
company, provide enough information about the jobs so that applicants can
make comparisons with their qualifications and interests, and generate
enthusiasm among the best candidates so that they will apply for the vacant
positions.
The negative consequences of a poor recruitment process speak volumes
about its role in an organization. The failure to generate an adequate number
of reasonably qualified applicants can prove costly in several ways. It can
greatly complicate the selection process and may result in lowering of
selection standards. The poor quality of selection means extra cost on
training and supervision. Furthermore, when recruitment fails to meet the
organizational needs for talent, a typical response is to raise entry-level pay
scales. This can distort traditional wage and salary relationships in the
organization, resulting in avoidable consequences.
SUB-SYSTEMS OF RECRUITMENT
The recruitment process consists of the following four sub-functions:-
Finding out and developing the sources where the required number
and kind of employees will be available.
Developing suitable techniques to attract the desirable candidates.
Employing the techniques to attract candidates.
Stimulating as many candidates as possible and asking them to apply
for jobs irrespective of the number of candidates required.
Management has to attract more candidates in order to increase the
selection ratio so that the most suitable candidate can be selected out of the
total candidates available. Recruitment is positive as it aims at increasing the
number of applicants and selection is somewhat negative as it selects the
suitable candidates in which process; the unsuitable candidates are
automatically eliminated. Though, the function of recruitment seems to be
easy, a number of factors make performance of recruitment a complex one.
FACTORS AFFECTING RECRUITMENT
The following are the 2 important factors affecting Recruitment:-
1) INTERNAL FACTORS
Recruiting policy
Temporary and part-time employees
Recruitment of local citizens
Engagement of the company in HRP
Company’s size
Cost of recruitment
Company’s growth and expansion
2) EXTERNAL FACTORS
Supply and Demand factors
Unemployment Rate
Labour-market conditions
Political and legal considerations
Social factors
Economic factors
Technological factors
RECRUITMENT POLICY
Recruitment policy of any organization is derived from the personnel
policy of the same organization. In other words the former is a part of the
latter. However, recruitment policy by itself should take into consideration
the government’s reservation policy, policy regarding sons of soil, etc.,
personnel policies of other organizations regarding merit, internal sources,
social responsibility in absorbing minority sections, women, etc.
Recruitment policy should commit itself to the organisation’s personnel
policy like enriching the organisation’s human resources or servicing the
community by absorbing the retrenched or laid-off employees or
casual/temporary employees or dependents of present/former employees,
etc.
The following factors should be taken into consideration in formulating
recruitment policy. They are:-
Government policies
Personnel policies of other competing organizations
Organisation’s personnel policies
Recruitment sources
Recruitment needs
Recruitment cost
Selection criteria and preference
RECRUITMENT- Matching the of the organization & applicants
IMPACT OF PERSONNEL POLICIES ON RECRUITMENT POLICIES
Recruitment policies are mostly drawn from personnel policies of the
organization. According to Dale Yodar and Paul D. Standohar, general
personnel policies provide a wide variety of guidelines to be spelt out in
recruitment policy. After formulation of the recruitment policies, the
management has to decide whether to centralize or decentralize the
recruitment function.
CENTRALISED V/s DECENTRALISED RECRUITMENT
Recruitment practices vary from one organization to another. Some
organizations like commercial banks resort to centralized recruitment while
some organizations like the Indian Railway resort to decentralized
recruitment practices. Personnel department at the central office performs all
the functions of recruitment in case of centralised recruitment and personnel
departments at unit level/zonal level perform all the functions of recruitment
concerning to the jobs of the respective unit or zone.
MERITS OF CENTRALISED RECRUITMENT
Average cost of recruitment per candidate/unit should be
relatively less due to economies of scale.
It would have more expertise available to it.
It can ensure broad uniformity among human resources of
various units/zones in respect of education, skill, knowledge,
talent, etc.
It would generally be above malpractices, abuse of powers,
favouritism, bias, etc.
It would facilitate interchangeability of staff among various
units/zones.
It enables the line managers of various units and zones to
concentrate on their operational activities by relieving them
from the recruiting functions.
It enables the organization to have centralised selection
procedure, promotional and transfer procedure, etc.
It ensures the most effective and suitable placement to
candidates.
It enables centralised training programmes which further
brings uniformity and minimizes average cost of staff.
MERITS OF DECENTRALISED RECRUITMENT
The unit concerned concentrates only on those sources/places wherein
normally gets the suitable candidates. As such the cost of recruitment
would be relatively less.
The unit gets most suitable candidates as it is well aware of the
requirements of the job regarding culture, traditional, family
background aspects, local factors, social factors, etc.
Units can recruit candidates as and when they are required without
any delay.
The units would enjoy freedom in finding out, developing the sources,
in selecting and employing the techniques to stimulate the candidates.
The unit would relatively enjoy advantage about the availability of
information, control and feedback and various functions/processes of
recruitment.
The unit would enjoy better familiarity and control over the
employees it recruits rather than on employees selected by the central
recruitment agency.
Both the systems of recruitment would suffer from their own demerits.
Hence, the management has to weigh both the merits and demerits of each
system before making a final decision about centralizing or decentralizing
the recruitment. Alternatively management may decentralize the recruitment
of certain categories of employees preferably middle and top level
managerial personnel and centralize the recruitment of other categories of
employee’s preferably lower level positions in view of the nature of the jobs
and suitability of those systems for those categories of positions. The
management has to find out and develop the sources of recruitment after
deciding upon centralizing or decentralizing the recruitment function.
SOURCES OF RECRUITMENT
The sources of recruitment may be broadly divided into two categories: internal sources and external sources. Both have their own merits and demerits. Let’s examine these.
Internal Sources:-
Persons who are already working in an organization constitute the ‘internal sources’. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. Whenever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted.
External Sources
External sources lie outside an organization. Here the organization can have the services of : (a) Employees working in other organizations; (b) Jobs aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d) Candidates referred by unions, friends, relatives and existing employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates responding to the advertisements, issued by the organization; and (g) Unsolicited applications/ walk-ins.
Merits and Demerits of ‘Recruiting people from ‘Within’
Merits Demerits
1) Economical: The cost of recruiting internal candidates is minimal. No expenses are incurred on advertising.
2) Suitable: The organization can pick the right candidates having the requisite skills. The candidate can choose a right vacancy where their talents can be fully utilized.
3) Reliable: The organization has the knowledge about suitability of a candidate for a position.
1) Limited Choice: The organization is forced to select candidates from a limited pool. It may have to sacrifice quality and settle down for less qualified candidates.
2) Inbreeding: It discourages entry for talented people, available outside an organization. Existing employees may fail to behave in innovative ways and inject necessary dynamism to
‘Known devils are better than unknown angels!’
4) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees. It motivates them to work hard and earn promotions. They will work with loyalty commitment and enthusiasm.
enterprise activities.
3) Inefficiency: Promotions based on length of service rather than merit, may prove to be a blessing for inefficient candidate. They do not work hard and prove their worth.
4) Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited, higher level positions in an organization. As years roll by, the race for premium positions may end up in a bitter race.
The merits and demerits of recruiting candidates from outside an organization may be stated thus:
Merits and Demerits of External sources of Recruitment
Merits Demerits
Wide Choice: The organization has the freedom to select candidates from a large pool. Persons with requisite qualifications could be picked up.
Infection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working.
Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. Such a competitive atmosphere would help an employee to work to the best of his abilities.
Long term benefits: Talented people could join the ranks, new ideas could find meaningful expression, a competitive atmosphere would compel people to give out their best and earn rewards, etc.
Expenses: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task either.
Time consuming: It takes time to advertise, screen, to test and test and to select suitable employees. Where suitable ones are not available, the process has to be repeated.
De-motivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. The feeling that their services have not been recognized by the organization, forces then to work with less enthusiasm and motivation.
Uncertainty: There is no guarantee that the organization, ultimately will be able to hire the services of suitable candidates. It may end up hiring someone who does not fit and who may not be able to adjust in the new setup.
METHODS OF RECRUITMENT
The following are the most commonly used methods of recruiting people.
INTERNAL METHODS:
1. Promotions and Transfers
This is a method of filling vacancies from within through transfers and
promotions.
A transfer is a lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working
conditions, etc., but not necessarily salary. Promotion, on the other hand,
involves movement of employee from a lower level position to a higher
level position accompanied by (usually) changes in duties, responsibilities,
status and value. Organisations generally prepare badli lists or a central pool
of persons from which vacancies can be filled for manual jobs. Such
persons are usually passed on to various departments, depending on internal
requirements. If a person remains on such rolls for 240 days or more, he
gets the status of a permanent employee as per the Industrial Disputes Act
and is therefore entitled to all relevant benefits, including provident fund,
gratuity, retrenchment compensation.
2. Job Posting
Job posting is another way of hiring people from within. In this method,
the organisation publicises job opening on bulletin boards, electronic method
and similar outlets. One of the important advantages of this method is that it
offers a chance to highly qualified applicants working within the company to
look for growth opportunities within the company to look for growth
opportunities within the company without looking for greener pastures
outside.
3. Employee Referrals
Employee referral means using personal contacts to locate job
opportunities. It is a recommendation from a current employee regarding a
job applicant. The logic behind employee referral is that “it takes one to
know one”. Employees working in the organization, in this case, are
encouraged to recommend the names of their friends, working in other
organizations for a possible vacancy in the near future. In fact, this has
become a popular way of recruiting people in the highly competitive
Information Technology industry nowadays. Companies offer rich rewards
also to employees whose recommendations are accepted – after the routine
screening and examining process is over – and job offers extended to the
suggested candidates. As a goodwill gestures, companies also consider the
names recommended by unions from time to time.
External (direct) Methods
Campus Recruitment
It is a method of recruiting by visiting and participating in college
campuses and their placement centres. Here the recruiters visit reputed
educational institutions such as IITs, IIMs, colleges and universities with a
view to pick up job aspirants having requisite technical or professional
skills. Job seekers are provided information about the jobs and the
recruiters, in turn, get a snapshot of job seekers through constant interchange
of information with respective institutions.
A preliminary screening is done within the campus and the short listed
students are then subjected to the remainder of the selection process. In
view of the growing demand for young managers, most reputed
organizations (such as Hindustan Lever Ltd., Proctor & Cable, Citibank,
State Bank of India, Tata and Birla group companies) visit IIMs and IITs
regularly and even sponsor certain popular campus activities with a view to
earn goodwill in the job market. Advantages of this method include: the
placement centre helps locate applicants and provides resumes to
organizations; applicants can be prescreened; applicants will not have to be
lured away from a current job and lower salary expectations. On the
negative front, campus recruiting means hiring people with little or no work
experience.
The organizations will have to offer some kind of training to the
applicants, almost immediately after hiring. It demands careful advance
planning, looking into the placement weeks of various institutions in
different parts of the country. Further, campus recruiting can be costly for
organizations situated in another city (airfare, boarding and lodging
expenses of recruiters, site visit of applicants if allowed, etc.).
If campus recruitment is used, steps should be taken by human resource
department to ensure that recruiters are knowledgeable concerning the jobs
that are to be filled and the organizations and understand and employ
effective interviewing skills.
Guidelines for campus recruiting: companies using college campuses as
recruitment source should consider the following guidelines:
Identify the potential candidates early: The earlier that candidate with
top potential can be identified, the more likely the organization will be
in a position to attract them.
Employ various means to attract candidates: These may include
providing research grants; consulting opportunities to faculty
members, funding university infrastructural requirements, internships
to students, etc. in the long run these will enhance the prestige of the
company in the eyes of potential job seekers.
Use effective recruitment material: Attractive brochures, films,
computer diskettes, followed by enthusiastic and effective
presentations by company officials, correspondence with placement
offices in respective campus in a friendly way – will help in booting
the company image in the eyes of the applicants. The company must
provide detailed information about the characteristics of entry – level
positions, especially those that have had a major positive impact on
prior applicants’ decisions to join the company.
Offer training to campus interviews: Its better to devote more time
and resources to train on campus interviewers to answer specific job –
related questions of applicants.
Come out with a competitive offer: Keep the key job attributes that
influence the decisions of applicants such as promotional avenues,
challenging assignments, long term income potential, etc., while
talking to candidates.
Indirect methods:-
Advertisements:-
These include advertisements in newspapers; trade, professional and
technical journals; radio and television; etc. in recent times, this medium has
become just as colourful, lively and imaginative as consumer advertising.
The ads generally give a brief outline of the job responsibilities,
compensation package, prospects in organizations, etc. this method is
appropriate when (a) the organization intends to reach a large target group
and (b) the organizations wants a fairly good number of talented people –
who are geographically spread out. To apply for advertised vacancies let’s
briefly examine the wide variety of alternatives available to a company - as
far as ads are concerned:
Newspaper Ads : Here it is easy to place job ads without much of
a lead time. It has flexibility in terms of information and can
conveniently target a specific geographic location. On the
negative side, newspaper ads tend to attract only those who are
actively seeking employment at that point of time, while some of
the best candidates who are well paid and challenged by their
current jobs may not be aware of such openings. As a result, the
company may be bombarded with applications from a large
number of candidates who are marginally qualified for the job –
adding to its administrative burden. To maintain secrecy for
various reasons (avoiding the rush, sending signals to
competitors, cutting down expenses involved in responding to any
individual who applies, etc.), large companies with a national
reputation may also go in for blind-box ads in newspapers,
especially for filling lower level positions. In a blind-box ad there
is no identification of the advertising organization. Job aspirants
are asked to respond to a post office box number or to an
employment firm that is acting as an agent between the job
seekers and the organization.
Television and radio ads: These ads are more likely to each
individual who are not actively seeking employment; they are
more likely to stand out distinctly, they help the organization to
target the audience more selectively and they offer considerable
scope for designing ads creatively. However, these ads are
expensive. Also, because the television or radio is simply seen or
heard, potential candidates may have a tough time remembering
the details, making application difficult.
Third Party Methods
Private Employment Search Firms:-
As search firm is a private employment agency that maintains
computerized lists of qualified applicants and supplies these to employers
willing to hire people from the list for a fee. Firms like Arthur Anderson,
Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; Ferguson
Associates offers specialized employment-related services to corporate
houses for a fee, especially for top and middle level executive vacancies.
AT the lower end, a number of search firms operate – providing
multifarious services to both recruiters and the recruitees.
Employment Exchanges:-
AS a statutory requirement, companies are also expected to notify
(wherever the Employment Exchanges Act, 1959, applies) their vacancies
through the respective Employment Exchanges, created all over India for
Disabled Ex-Servicemen : Ex-Servicemen who while serving in Armed
Forces of the Union were disabled in operation against the enemy or in
disturbed areas shall be treated as Disabled Ex- Servicemen.
Dependents of Servicemen killed in Action : Servicemen killed in the
following operations would be deemed to have been killed in action
attributable to Military Service (a) war (b) warlike operations or border
skirmishes either with Pakistan on cease fire line or any other country (c)
Fighting against armed hostilities in a counter insurgency environment viz.
Nagaland, Mizoram, etc. (d) Serving with peacekeeping mission abroad (e)
Laying or clearance of mines including enemy mines as also mine sweeping
operation between one month before and three months after conclusion of an
operation (f) Frost-bite during actual operations or during the period
specified by the Government (g) Dealing with agitating Para-Military forces
personnel (h) IPKF personnel killed during the operations in Sri Lanka.
NOTE : 1) Candidates still serving in Defence and desirous of applying
under Ex-Servicemen category should submit a certificate from the
competent authority to the effect that they would be released /retired on or
before 31.08.2010. 2) Ex-Servicemen candidates who have already secured
employment under the Central Government in Group C & D will be
permitted the benefit of age relaxation as prescribed for Ex-Servicemen for
securing another employment in a higher grade or cadre in Group ‘C’/ ‘D’
under the Central Government. However, such candidate s will not be
eligible for the benefits of reservation for Ex- Servicemen. 3) The Territorial
Army Personnel will however be treated as Ex-Servicemen w.e.f. 15.
11.1986. 4) An Ex-Serviceman who has once joined a Government job on
the civil side after availing of the benefits given to him as an Ex-
Serviceman for his re -employment, his Ex- Serviceman status for the
purpose of re-employment in job ceases.
5. Reservation for Persons with Disability (PWD) : Vacancies are
reserved for Disabled (Physically Challenged) Persons under Section 33 of
the Persons with Disabilities (Equal Opportunities, Protection of Rights and
Full Participation) Act,1995 (1 of 1996) as per government guidelines.
Candidates with following disabilities are eligible to apply as per the
definitions given in the above act :
a) Blindness
b) Low Vision
c) Hearing Impairment
d) Locomotor Disability or Cerebral Palsy
Only such persons would be eligible for reservation in services/posts who
suffer from not less than 40% of relevant disability. A person who wants to
avail the benefit of reservation will have to submit a Disability Certificate
issued by Medical Board duly constituted by Central or State Government.
Candidates falling in the following categories of the disabled may apply for
the post :
Documents needed to produce during the interviews are: -
1. Detached port ion of call letter issued for written examination
2. (a) School leaving Certificate or any other acceptable documentary proof
regarding date of birth.
(b) Certificates and mark sheets of qualification you possess as mentioned in
your application including certificate(s) in support of your having computer
knowledge/proficiency, if any.
(c) Candidate belonging to reserved category will produce Caste/Community
certificate in the format prescribed by the Government of India, from the
competent authority.
In case of candidate belonging to Other Backward Class (OBC), the
certificate should have “Non Creamy Layer” clause for financial year 2007-
2008 issued on or after 01.04.2008 on the lines of format given in the Bio-
Data cum Attestation Form
(d) Candidate belonging to Physically Handicapped category will produce a
medical certificate as specified in the Disabilities Act of 1995 in support of
his/her disability for our verification.
(e) Ex-servicemen – Candidates who were serving in Defence and had
applied under Exservicemen category should submit a certificate from the
competent authority stating that they have been released/retired on or before
31.07.2008 as stated in para 7 of the advertisement no.CRPD/CR/2008-09/1.
(f) Two Character Certificates issued in the recent past from :-
a. School/College last attended.
b. the State/Central Government Gazetted Officer.
c. the previous/present employer in case you were/are employed.
(g) Testimonials from your present/previous employers & Service
Certificate(s),in respect of your present/previous employment, if any.
(h) ‘IDENTITY CERTIFICATE’ on Page 4 of the Bio-Data-cum-Attestation
form should be signed by any one of the following – Gazetted Officers of
Central / State Government, Member of Parliament / State Legislature, Sub-
Div. Magistrate / Officer, Tahasildar or Naib / Dy. Tahasildar authorized to
exercise magisterial powers, Principal / Head Master of recognized
Institutions, Block Development Officeror Post Master.
(i) Attested English version of those certificates, which are in vernacular
language.
3. Persons in the service of Government/Public Sector Banks/Undertakings,
have to submit a “No Objection Certificate” from their present employer.
Your candidature is liable to be cancelled, if it is not produced. It should be
further noted that in case you are selected, you should produce proper
relieving letter from your employer at the time of taking up your
appointment.
Clerical Staff during 2009-10: 11000 Posts in
AHMEDABAD: 500 Posts
BANGLORE: 800 Posts
BHOPAL: 800 Posts
BHUBANESWA: R 500 Posts
CHANDIGARH: 900 Posts
CHENNAI: 900 Posts
GUWAHATI: 500 Posts
HYDERABAD: 900 Posts
KOLKATA: 900 Posts
LUCKNOW: 900 Posts
MUMBAI: 1100 Posts
NEW DELHI: 1000 Posts
PATNA: 900 Posts
THIRUVANANTHAPURAM: 400 Posts
MAJOR FINDINGS ARE:
Sources used for recruitment is basically advertisement.
Centralized form of recruitment.
Criteria for educational qualification vary according to the posts.
Aptitude test and personal interview mainly used for selection.
Reference check is done.
Two stages involves in selection process.
Reservation of seats according to the caste factor plays an important role.
Marketing and recovery officers are recruited on contractual basis and later
mad
e permanent based on performance.
Dependants of serviceman killed in action, ex-serviceman, physically
challenged
people too get an opportunity to work for SBI.
Applications are filled online through company website.
Age concession varies according to class and caste factor.
The ads contain a well designed job description with clear definition for few
fa
cts
The application fee too varies by the caste factor.
Many feel training should be conducted based on individual needs.
Expenses are incurred for advertisements but application fees balance it in
the
other way.
Restructuring of hiring process can be done.
Ads generate a wide range of pool of applicants.
Quota reservation isn’t appreciated by many while some find it as an equal
emplo
yment opportunity.
RECOMMENDATION
Based on the detailed study carried out the following are few suggestions:-
Govt. policies on reservation of seats can be revised.
The promotions can be done on performance basis.
The selection levels can be elaborated to select the very best competent
employe
e in today’s competitive age.
Setting of goals on monthly basis will enhance performance.
Training can be conducted based on the need of an employee rather than
making it
mandatory for a certain cadre of staffs all together.
CONCLUSION
The topic of the study was “ Recruitment practices in State Bank Of India”.
The study has helped in understanding the theoretical and practical aspects
of r
ecruitment in reality. It has given a way to in depth understanding of the
hirin
g process of SBI.Recruitment is in centralized form. And the external source
i.e
. by the way of advertisements people are being made aware of the
vacancies. The
advertisements are designed in such a way that there remains no iota of
confusi
on with the job description, eligibility criteria and few terms with proper defi
nition and explanation. Advertisements are highly informative in nature.
Application forms are being filled online. The large pool of talents then sit
fo
r a written aptitude test and the selected ones further move on with personal
in
terview. The successful ones are being informed and then the induction
program i
s being conducted for them.
As far as the recruitment process is concerned, it is a standard process being
f
ollowed but with changing time and expansion or innovations in banking
technolog
y this process can be modified a bit seeing the pros and con of the situation.
At last I would conclude that STATE BANK OF INDIA has achieved its
entire goal w
ith its idea and unique idea. It has good manpower and provides good
facilities
to its employees. The majority of company’s profitability ratios shows
upward tr
end. The performance of the company can be considered as considered as
satisfact
ory in time of recession As per my opinion STATE BANK OF INDIA has a
wide scope
to develop in future.
QUESTIONNAIRE“BANK OFFICIALS”
Name –Company’s name –Designation –Date-
Note – Please tick the appropriate option.
1. What source you adopt to source candidates? a. Employee referralb. Campus recruitment c. Advertisingd. Recruitment agenciese. Job portalsf. Other, pls specify –
2. How many stages are involved in selecting the candidate?a. 1b. 2c. 3d. 4e. More
3. Do you use any of the following tests during the process of recruitment?a. Writtenb. Aptitudec. Group Discussiond. Personal Interviewe. Psychometric testf. Other, pls specify –
4. How do you track the source of candidate?a. Manualb. Software c.Onlined.Windows. Xls
5. Apart from the HR Manager, who all from the other departments are required to get involved in interviewing process?a. Salesb. Administrationc. HR Executivesd. Other, pls specify –
6. What is the average time spent by sales dept. during recruitment (each candidate)?a. 10mins.b. 10 to 20mins.c. 20 to 30mins.d. More
7. What is the average time spent by HR dept. during recruitment (each candidate)?a. 10mins. b. 10 to 20mins.c. 20 to 30mins.d. More
8. What is the average time spent by Admin dept. during recruitment (each candidate)?a. 10mins.b. 10 to 20mins.c. 20 to 30mins.d. More
9. Do you follow different recruitment process for different grades of employees?a. Nob. Yes
10. What is the back out percentage of candidates after being offered?a.1-5b.5-10 c.10-15d. 15-20
11. What percentage of candidates leave within the period of less than1- 3 month?a.1-5b.5-10 c.10-15d. 15-20
12. What percentage of candidates leave within the period of less than3- 6 month?a.1-5 b.5-10 c.10-15d. 15-20
13. What percentage of candidates leave within the period of less than 6-12 month?a.1-5b.5-10 c.10-15d. 15-20