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Project Report Updated
Project Report Updated
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A
PROJECT REPORT
ON
SELECTION PROCESS IN BANKING SECTOR
Submitted to : Submitted By :
Dr. Seema Singh Ashu
(Assoiciate Professor Roll no : 2102011
IMSAR , MDU ) MBA(hons 2.4) 4th Sem.
University Roll no:
Reg. No. : 1610230054
(2021-2023)
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DECLARATION
The matter embodied in this report has not been submitted for the award of any
other degree or diploma. Every effort has been made to enhance the quality of
work. However, I owe the sole responsibility of the shortcoming, if any, in this re-
port.
Ashu
MBA (hons)
2.4(4th Sem.)
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Certificate
This is to certify that Mr Ashu , student of Institute of Management Studies and Re-
search (IMSAR), Maharshi Dayanand University, Rohtak, Haryana studying in MBA,
Roll No. 2102011 has submitted a project report on the title “Selection Process in
Banking Sector” as assigned and approved by the institute for partial fulfillment of
Degree of Master of Business Administration (Hons.) to M. D. University, Rohtak.
Further, the work done by her is original piece of work and carried under my supervi-
sion.
Signature of Supervisor
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ACKNOWLEDGMENT
In the preparation of this project, lot of people helped me in some way or the other
and therefore acknowledgement are due to them without whose cooperation, support,
encouragement, and guidance this research study could not have been completed.’
This project was done under the guidance of Dr. Seema Singh. I express my pro-
found thanks to her for giving me valuable advice and guidance and sparing valuable
timeinclarifying various points raised by me. I would like to acknowledge any deep-
est appreciation and undying gratitude for the scholarly guidance, constant encour-
agement and confidence she has given to me. She has been my mentor not only dur-
ing the course work, but also in my entire PG study. I am truly indebted to her.
I am extremely thankful to all my teachers and who thought me in the MBA pro-
grammed, therefore enriching my report with knowledge. My respondents deservemy
appreciation for their support and willingness for providing the required information
during my study.
Ashu
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CONTENT
Chapter 1 Page No.
➢ Introduction
8-11
➢ Literature Review
12-19
➢ Scope of the Study
20
➢ Objectives of the Study
21
Chapter 2
➢ Industry Profile
24-28
Chapter 3
30-33
Research Methodology
Chapter 4
Findings
46
Chapter 5
Conclusion
48
Limitations of the study
Recommendations
49
➢ Bibliography
50
➢ Questionnaire 51-52
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CHAPTER 1
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Introduction
Selection
The selection process can be defined as the process of selection and shortlisting of the right
candidates with the necessary qualifications and skill set to fill the vacancies in an organization. The
selection process varies from industry to industry, company to company and even amongst departments
of the same company.
Selection Process
Every organisation creates a selection process because they have their own requirements. Although,
the main steps remain the same. So, let’s understand in brief how the selection process works.
Preliminary Interview
This is a very general and basic interview conducted so as to eliminate the candidates
who are completely unfit to work in the organisation. This leaves the organisation with a
pool of potentially fit employees to fill their vacancies.
Receiving Applications
Potential employees apply for a job by sending applications to the organisation. The ap-
plication gives the interviewers information about the candidates like their bio-data, work
experience, hobbies and interests.
Screening Applications
Once the applications are received, they are screened by a special screening committee
who choose candidates from the applications to call for an interview. Applicants may be
selected on special criteria like qualifications, work experience etc.
Employment Tests
Before an organisation decides a suitable job for any individual, they have to gauge their
talents and skills. This is done through various employment tests like intelligence
tests, aptitude tests, proficiency tests, personality tests etc.
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Employment Interview
The next step in the selection process is the employee interview. Employment interviews
are done to identify a candidate’s skill set and ability to work in an organisation in detail.
Purpose of an employment interview is to find out the suitability of the candidate and to
give him an idea about the work profile and what is expected of the potential employee.
An employment interview is critical for the selection of the right people for the right jobs.
Checking References
The person who gives the reference of a potential employee is also a very important
source of information. The referee can provide info about the person’s capabilities,
experience in the previous companies and leadership and managerial skills. The
information provided by the referee is meant to kept confidential with the HR
department.
Medical Examination
The medical exam is also a very important step in the selection process. Medical exams
help the employers know if any of the potential candidates are physically and mentally fit
to perform their duties in their jobs. A good system of medical check-ups ensures that the
employee standards of health are higher and there are fewer cases of absenteeism,
accidents and employee turnover.
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Personnel selection best practices:
Personnel selection practices ( eg, interviews, ability and personality tests) continues to capture the
most attention from staffing scholars. There are several comprehensive reviews of selection prac-
tices, as well as discussions of research practical applications. Rather than review all this re-
search, the present review summaries the major new developments.
Article 1: Pre-selection:
1. The selection of candidates for banks are through a common entrance. The notice is issued by
IBPS regarding the vacancies in bank for different posts and details are provided regarding the
selection procedure.
2. The candidates who clear the both exams then they are called for interview.
3. The pre- selection panel will verify the eligibility of the candidates, in accordance with the el-
igibility requirements. Failure to comply with one of these requirements will result in
exclusion of concerned candidate from the next steps of the selection process.
4. The pre-selection panel then assess each eligible candidate according to the requirement for
selection.
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Article 2: Selection
1. The board shall assess the candidate on the basis of the established selection requirements.
2. The agency service shall provide logistic support for the selection
process. Article 3: Appointment
1. On the basis of the above process, the competent candidate will get selected.
2. The candidate not appointed shall be put on the reserve list.
3. Reserve list is valid for the tenure of term of the appointment.
1. Proper selection and placement of employees lead to growth and development of the
company. The company can similarly, only be as good as the capabilities of its
employees.
2. The hiring of talented and skilled employees results in the swift achievement of
company goals.
3. Industrial accidents will drastically reduce in numbers when the right technical staff
is employed for the right jobs.
4. When people get jobs, they are good at, it creates a sense of satisfaction with them
and thus their work efficiency and quality improve.
5. People who are satisfied with their jobs often tend to have high morale and motivation
to perform better.
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LITERATURE REVIEW
“Edwin Flippo characterizes Recruitment and choice procedure as a procedure of hunting down forth-
coming representatives and fortifying and urging them to apply for occupations in an association. In less
complex terms, enlistment and determination are simultaneous procedures and are void without each oth-
er. They fundamentally vary from each other and are key constituents of the association. It helps in find-
ing the potential and abilities of candidates for expected or genuine authoritative opening. It is a connec-
tion between the employments and those looking for occupations.
ARTHUR LEWIS (1980) Studies analyzed that there are great differences in development between
countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in
human behaviors”
Human resource management is the management of employee’s skill, knowledge abilities, talent, apti-
tude, creativity, ability etc. different terms are used for denoting Human Resource Management. They are
labor management, labor administration, labor management relationship, employee- employer relation-
ship, industrial relationship human capital management, human assent management etc. Though these
terms can be used differently widely, the basic nature of distinction lies in the scope or coverage andevo-
lutionary stage. In simple sense, human resource management means employing people, developing their
resources, utilizing, maintaining and compensating their services in tune with the job and organizational
requirements.
According to the Burack (1985) Studies on recruitment or enlistment sources are firmly connected to the
authoritative exercises as execution of workers, representative turnover, representative fulfillment,
worker wishes and the dedication of the association.
Butler, et al (1991) study “encompassing the array of organizational practices and decisions used to af-
fect the number or types of individuals who are willing to apply for, or to accept, employment in a given
vacancy”, thus defined. Recruitment combines with staffing and placement procedures to bring people in-
to positions, specified by some type of job analysis that was previously unfilled.
Richard Lee, (1994) Study explained the behavior of an examination numerous elements are consid-
ered which impact staff enlistment in the current monetary atmosphere and open deliberations what are
seen as the four principle quandaries: adaptability versus security; control versus strengthening; "skill"
versus learning and solace versus challenge. It concludes with several pieces of advice for those involved
in the recruitment process.
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Hiltrop (1996) Study 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 pro-
grams, recruitment and selection, teamwork, employee participation, and lastly, personnel planning are
the most essential practices(Hiltrop 1999). As a matter of fact, the primary role of HR is to develop, con-
trol, manage, incite, and achieve the commitment of the employees. The findings of Hiltrop's (1996) work
also showed that selectively hiring has a positive impact on organizational performance, and in turn pro-
vides a substantial practical insight for executives and officials involved. Furthermore, staffing
and selection remains to be an area of substantial interest. With recruitment and staffing tech-
niques for efficient hiring decisions, high performing companies are most likely to spend more
time in giving training particularly on communication and team-work skills (Hiltrop 1999). Moreover,
the finding that there is a positive connection existing between firm performances and training is coherent
with the human capital standpoint. Hence, Hiltrop (1996) suggests the managers need to develop HR
practices that are more focused on training in order to achieve competitive benefits.
Griffin (1997) defines recruitment to mean, “Securing the right individuals for specific occupations, and
it might appear as promoting for extensive gatherings of representatives or following out a softly talented
individual for particular work".
This implies no individual with paper capability is qualified for enrolment. A decision must be made on
who is the right contender for a specific post. This is vital because of the way that it is through this proce-
dure that the administration or association can accomplish its arrangements of objectives and goals.
Taylor, P. (1998) this article outlines seven commonly held misconceptions about recruitment and selec-
tion practices. Regions talked about incorporate the legitimacy of different enlistment and choice
measures, the states of important to amplify the adequacy of these practices and normal error impression
of the meeting procedure.
This article is most valuable for peruses inspired by workforce improvement hypothesis and research. A
bigger study has been performed into associations' utilization of organized talking strategies. Purposes
behind proceeded with fame of talking in choice, regardless of its weaknesses were examined further-
more. Consider the utilization of two organized meeting strategies to enhance choice: behavioral and situ-
ational addressing. The discovery of a huge scale overview of UK associations' utilization of these strat-
egies was exhibited. The utilization of organized meeting is quickly expanding and is utilized by all
sizes of association.
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Bratton and Gold (1999) carried out a study to critique the value-added and non-value activities in a re-
cruitment and selection process. The strategic manpower planning of a company, training and develop-
ment programmer, 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 organi-
zation success, which flows naturally into employee recruitment and staffing (Taher et al. 2000). There-
fore, demand rather than supply must be the prime focus of the recruitment and selection process and a
greater emphasis must be put on planning, supervising and control rather than mediation. Extending this
principle, a realistic approach to recruitment and selection process was demonstrated, and the study found
that an organization is efficient only when the value it commands exceeds the price involved in determin-
ing the process of decision making or product. In other words, value-added and non- value-added activi-
ties associated with a company's recruitment and selection process impacts its role in creating motivated
and skilled workforce in the country (Taher et al. 2000). Thus, the study identified the waiting time, in-
spection time and filing time as non-value-added tasks and the cost of advertisement as the only value-
added activity in the overall process.
Stewart and Knowles et al, (1999), the study conducted on recruitment and staffing and greater weight
was placed on current trends in recruitment and selection rather than a detailed account of the history of
recruitment and selection. Taher et al. (2000) studied the recruitment and selection section of Bangladesh
Open University. It was found that whenever the recruitment and selectiondepartment of BOU received a
recruitment request of new applicants from other sections, the officials failed to instantly advertise the va-
cancy in various media. The university had to follow some long sequential steps prior to doing so. After
the vacancy is publicly advertised, what followed were the bureaucratic formalities and complications to-
gether with inspection and supervision by two departments thereby causing unnecessary waitingin
the recruitment and staffing process that eventually increases the cost of recruitment by keeping the or-
ganization's image at stake. The study also witnessed some amount of repetition taking place at every step
of recruitment where the applications of applicants circulating around too many departments for verifica-
tions. This repetitive work tends to engage unnecessary persons for a single task that results in
unnecessary delay in the decision and unjust wastage of manpower.
Cheri Ostroff, (2002), he studied that the multi-level perspective on selection offered by Ployhart and
Schneider; it provides an important framework for enhancing the utility for selection procedures. By ex-
amining relationship between predictors and criteria across multiple levels of analysis, new insights into
how the selection process contributes to group and organizational performance and effectiveness can be
gleaned.
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Korsten (2003) Human Resource Management theories emphasize on techniques of recruitment and
staffing 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
(Korsten2003).
Roberts, (2005), A study concluded that there has been an increase in the diversity of recruitment objec-
tives he identified numerous objectives including; future work, mobility in and out of the organization, in-
teraction with a wide range of potential colleagues, fit with the current
„social‟ environment of customers, suppliers, culture and the physical‟ environment, particularly tech-
nology‟
According to Noe (2005) “recruitment is a process of attracting individuals on a timely basis, in sufficient
numbers and with appropriate qualifications, developing their interest in an organization and encouraging
them to apply for jobs within it”. This shows unmistakably that enrolment activities are not led through-
out the entire year but rather at an assigned time when the need emerges. The need emerges as a conse-
quence of empty positions made by the individuals who left the administration as an after effect of their
retirement, withdrawal from the administration or different reasons.
Taher et al. (2006) after careful consideration of similar problems in the BOU recommended for amend-
ing the recruitment process by stating that firstly processes like job analysis and searching internal and
external sources must be followed by direct advertisement of the post as the HR's own responsibility, and
not by any intermediate officials. This will eliminate the non-value activities. Taheretal (2000) suggested
a 'system' to be introduced to ease the respective department to study the shortlisted candidates, which can
be done only by the request of the HR department. A medical assistance must be sought by BOU in re-
gards to the physical or mental abilities of applicants for the job function as well as their workers com-
pensation and risk. A procedure needs to be devised pertaining to the privacy and confidentiality of medi-
cal reports. Thus, this privacy and decrease in noon-value added activity of the medical exam can be sus-
tained effectively by testing the applicants via contracted medical advisors, or in-house doctors. Use of a
computer based HR system should be installed in BOU to manage the pool of information about employ-
ees and to make the organization to take just- in-time HR recruitment and selection decisions. Therefore,
any organization is encouraged to development real-time recruitment
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strategies that must attempt to generate a pool of appropriately qualified and well-experienced individu-
als so as to effectively initiate the selection strategies and decisions. In essence, the potential applications
are encouraged to apply for the open vacancies and also the relevant departments can engage in recruiting
the best candidates to upgrade the department's performance (Taher et al. 2000).
Korsten and Jones et al. (2006), A study was conducted on recruitment and staffing by Human Re-
source Management theories emphasize on techniques of recruitment and selection and outline the bene-
fits 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).
Alan Price (2007), in his work Human Resource Management in a Business context, formally defines re-
cruitment and selection as the process of retrieving and attracting able applications for the purpose of em-
ployment. He states that the process of recruitment is not a simple selection process, while it needs man-
agement decision making and broad planning in order to appoint the most appropriate manpower. Their
existing competition among business enterprises for recruiting the most potential workers in on the
pathway towards creating innovations, with management decision making and employers attempting to
hire only the best applicants who would be the best fit for the corporate culture and ethics specific to
the company (Price 2007). This would reflect the fact that the management would particularly shortlist
able candidates who are well equipped with the requirements of the position they are applying for, includ-
ing team work. Since possessing qualities of being a team player would be essential in any management
position (Price 2007).
Breaugh, (2008), A more comprehensive model incorporating earlier recruitment stages such as setting
objectives to guarantee overall effectiveness of the process and maintain attraction of the candidates, on-
going communication should be employed have been provided in the research conducted. Work of Silzer
et al. (2010) study 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 some-
thing that can be acquired through development.
According to Silzer et al (2010), that was a core challenge in designing talent systems, facing the organi-
zation and among the senior management. The only solution to resolve the concern of attaining
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efficient talent management was by adopting fully-executable recruitment techniques. Regardless of a
well-drawn practical plan on recruitment and selection as well as involvement of highly qualified man-
agement team, companies following recruitment processes may face significant obstacles in implementa-
tion. As such, theories of HRM can give insights in the most effective approaches to recruitment even
though companies will have to employ there in house management skills for applying generic theo-
ries across particular organizational contexts. Word conducted by Silzer et al (2010) described that the
primary objective of successful talent strategies is to create both a case as wellas a blueprint for develop-
ing the talent strategies within a dynamic and highly intensive economy whereinacquisition, deployment
and preservation of human capital-talent that matter, shapes the competitive advantages and success of
many companies (Silzer et al. 2010).
Neeraj Kumari (2012) A Study of the Recruitment and Staffing process: SMC Global recruitment and
selection strategies result in improved organizational outcomes. The main objective is to identify general
practices that organizations use to recruit and select employees and, to determine how the recruitment
and selection practices affect organizational outcomes. The research methodology applied is the explora-
tory. The data was collected through well- structured questionnaires. The source of data was both primary
and secondary. The company considered portals as the most important medium of hiring employees. The
employees working in the company consider the employee references are one of the most reliable sources
of hiring the new employees. Company always takes in consideration the cost-benefit ratio. As per my
study, out of the various methods of sourcing candidates, the best tone is- getting references via references
and networking. In the process, I came across various experiences where the role of an HR and the rele-
vant traits he finds in the candidates were displayed. The structure of the financial sector (as well as that
of SMC Ltd) was known along with the analysis that recruitment is an ongoing process in this industry
and therefore new innovative methods have to be thought of and applied to meet the demand. Company
should focus on long term consistent performance rather than short term. The emphasis towards training
and enhancing skills of recruiters needs to be more and also consistent. Even though an HR manager has
many challenges to face in order to ensure that the human resource department contributes to the bottom-
line and emerges as a strategic partner in the business, it is “Talent acquisition”, that is the key
determining factor in how well and Human resource department contributes towards the achievement of
the overall objective of the organization and therefore is a daunting task for any HR manager.
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Ashish Kumar Gupta (2013) a study analyzed that better recruitment and staffing strategies result
in improved organizational outcomes. With reference to this context, the research paper entitled Re-
cruitment and Selection has been prepared to put a light on Recruitmentand Selection process. The
main objective is to identify general practices that organizations use to recruit and select employees and,
to determine how the recruitment and selection practices affect organizational outcomes at Electron-
ics Industry, In Krishna Dot Ap, India. Successful recruitment and selection practices are key com-
ponents at the entry point of human resources in any organization. The main objective of thispaper is
to identify general practices that organizations use to recruit and select employees. The studyalso fo-
cusses its attention to determine how the recruitment and selection practices affect the organizational
outcomes and provide some suggestions that can help. Data analysis has been done with statistical
tools like tables, graphs, pie charts, bar diagrams.
By Ghazal Ishrat (2013), a comparative study of Staffing & Recruitment, Training and Development
policies in Indian MNCs and Foreign MNCs” has analyzed that this research paper deals with thecompar-
ative study of recruitment and selection, training and development process of INDIAN MNCs and
FOREIGN MNCs. This research paper highlights the differences and similarities of the policies being
followed in MNCs. In my last research paper being published earlier I highlighted the innovative HR
practices of Foreign and Indian MNCs but in this paper I am highlighting the comparative analysis of se-
lected policies.
Alonso, Ricardo (2014) study analyzed that this paper studies employer recruitment and staffing of job
applicants when productivity is match-specific. Job- seekers have private, noisy assessments of their
match value and the firm perform noisy interviews. Job-seekers' willingness to undergo a costly hiring
process will depend both on the wage paid and on the perceived likelihood of being hired, while a noisy
interview leads the firm to consider the quality of the applicant pool when setting hiring standards. I char-
acterize job-seekers' equilibrium application decision as well as the firm's equilibrium wage and hiring
rule. I show that changes in the in formativeness of job-seekers assessments, or changes in the in
formativenessof the firm's interview, affect the size and composition of the applicant pool, and can raise
hiring costs when it dissuades applications. As a result, the firm may actually favor noisier interviews,
orprefer to face applicants that are less certain of their person-job/organization fit.
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Syamala Devi Bhoganadam, Dr. Dasaraju Srinivasa Rao (2014), a study on Recruitment and Selec-
tion Process of SAI GLOBAL YARNTEX (INDIA) Pvt. Ltd. From past decade the businessorganizations
are more concentrating on the human capital because they are the most valued and most treasured assets.
While recruiting the candidates the organizations have to map carefully the available human resources be-
cause they create the competitive advantage for the organizations.
The word recruitment has become as a logistic of human resource capital for the many organizations.
Business organizations are advancing modern recruiting and selection methods due to the entry of multi-
national companies. The best human capital availability in organizations makes them competitive ad-
vantage and as well as they become the real-life blood of the organizations. The data was collected by
means of questionnaire and the data was classified and analyzed carefully by all means.
From the analysis, it has been found that the most of the employees in the company were satisfied but
changes are required according to the changing scenario of recruitment process that has a great impact
on working of the company as a fresh blood, new idea enters in the company. Selection process is also
good and the company’s recruitment department is doing well in placing the candidates and filling the
job vacancies for all levels of positions.
Sudhamsetti Naveen, Dr. D.N.M Raju (2015) A Study on Recruitment & Selection Process with Refer-
ence to Three Industries, Cement Industry, Electronics Industry, Sugar Industry, successful recruitment
and selection practices are the key components at the entry point of humanresources in any organization.
Efficient recruitment and selection strategies result in improved organizational outcomes. The main objec-
tive of this paper is to identify general practices that organizations use to recruit and selectemployees. The
study also focuses its attention to determine how the recruitment and selection practices affect the organi-
zational outcomes.
The study reveals that the recruitment and selection process offered in three selected industries are effec-
tive. The HR managers of the selected industries have to focus on selecting the right persons throughother
sources like campus placements, job.com, data banks etc. The selectionis done by evaluating the candi-
date’s skills, knowledge and abilities which are highly required to the vacancies in selected industries? It
is observed that, the selected industries have satisfied all the procedures of recruitment. To motivate the
employees; the selected industries have planned to offer incentives of both monetary and nonmonetary.
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SCOPE OF THE STUDY
This study provides opportunity for research and survey on recruitment and selection
procedures for employees in solving troublesome structure of HRM.
Innovation and creativity are blended with the organization culture through the study of
attractingand obtaining applications.
An effective approach to recruitment can help a company successfully compete for limited
humanresources.
Recruitment lends itself as a potential source of competitive advantage to a firm.
The study will play a vital role in identifying typical responses when recruitment fails to
meetorganizational needs for talent. The response will be like raise entry-level pay scales.
The effectiveness of the recruitment process can play a major role in determining the resources
thatmust be expended on other HR activities and their ultimate success.
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OBJECTIVE
Every task is undertaken with an objective. Without any objective a task is renderedmeaning-
less. The main objectives for undertaking this project are:
To understand the internal Recruitment process
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 the better process of recruitment and selection.
To know about role of recruiter and selector.
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CHAPTER NO. 2
INDUSTRY PROFILE
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INDUSTRY PROFILE
Banks play a key role in the entire financial system by mobilizing deposits from households spread
across the nation and making these funds available for investment, either by lending or buying securi-
ties. Today the banking industry has become an integral part of any nation’s economic progress and is
critical for the financial wellbeing of individuals, businesses, nations, and the entire globe. A
bank is a financial institution that provides banking and other financial services to their customers.
Banks are a subset of the financial services industry and play an important role in the global econo-
mies. They are a key player in stimulating economic growth. Banking is an important undertaking.
The movement of capital handled by banks allows economies to grow and prosper. Businesses and
governments need money to operate, and banks act as intermediaries between the suppliers of funds
and users of funds.
• The bank account balance is the financial position between the bank and the customer: when the
account is in credit, the bank owes the balance to the customer; when the account is overdrawn, the
customer owes the balance to the bank.
• The bank agrees to pay the customer's cheques up to the amount standing to the credit of
the customer's account, plus any agreed overdraft limit.
• The bank may not pay from the customer's account without a mandate from the customer, example
cheques drawn by the customer.
• The bank agrees to promptly collect the cheques deposited to the customer's account as
the customer's agent, and to credit the proceeds to the customer's account.
• The bank has a right to combine the customer's accounts, since each account is just an aspect of
the same credit relationship.
• The bank has a lien on cheques deposited to the customer's account, to the extent that the
customer is indebted to the bank.
• The bank must not disclose details of transactions through the customer's account—unless the
customer consents, there is a public duty to disclose, the bank's interests require it, or the law
demands it.
• The bank must not close a customer's account without reasonable notice, since cheques
are outstanding in the ordinary course of business for several days.
There are two broad categories under which banks are classified in India-
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There are four types of commercial banks:
The table below mentions the banks that belong to the government sector in 2021:
Sr.
Public Sector Bank Headquarters
No
Punjab National Bank ( Merged with Oriental Bank of Commerce
1 New Delhi
and United Bank of India)
2 Indian Bank( Merged with Allahabad Bank) Chennai
3 State Bank of India Mumbai
4 Canara Bank( Merged with Syndicate Bank) Bangalore
Union Bank of India( Merged with Andhra Bank and Corporation
5 Mumbai
Bank)
6 Indian Overseas bank Chennai
7 UCO Bank Kolkata
8 Bank of Maharashtra Pune
9 Punjab and Sind Bank New Delhi
10 Bank of India Mumbai
11 Central Bank of India Mumbai
12 Bank of Baroda Gujarat
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PRIVATE SECTOR BANKS
Private shareholders hold majority stakes in private sector banks. Reserve Bank of India lays down all
the rules and regulations. India has 21 private banks as of Nov. 2020:
1. AXIS BANK
2. BANDHAN BANK
3. CSB BANK
4. CITY UNION BANK
5. DCB BANK
6. DHANLAXMI BANK
7. FEDERAL BANK
8. HDFC BANK
9. ICICI BANK
10. IDBI BANK
11. TAMILNAD MERCANTILE BANK
12. NAINITAL BANK
13. INDUSIND BANK
14. YES BANK
15. JAMMU AND KASHMIR BANK
16. KARNATAKA BANK
17. KOTAK MAHINDRA BANK
18. SOUTH INDIAN BANK
19. IDFC FIRST BANK
20. RBL BANK
21. KARUR VYSYA BANK
FOREIGN BANKS
A bank operating as a private entity in India but headquartered in a foreign country is a foreign bank.
They are governed by both the country they are located in as well the country they have headquarters
in. At present there are 45 foreign banks in India. Some of these are:
1. CITI BANK
2. STANDARD CHARTERED BANK
3. HSBC BANK
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These are:
1. AU SMALL FINANCE BANK
2. CAPITAL SMALL FINANCE BANK
3. FINCARE SMALL FINANCE BANK
4. EQUITAS SMALL FINANCE BANK
5. ESAF SMALL FINANCE BANK
6. SURYODAY SMALL FINANCE BANK
7. UJJIVAN SMALL FINANCE BANK
8. UTKARSH SMALL FINANCE BANK
9. NORTHEAST SMALL FINANCE BANK
10. JANA SMALL FINANCE BANK
COOPERATIVE BANKS
Run by the elected members of a managing committee and registered under the Cooperative
Societies Act, 1912 are the cooperative banks. These are no-profit, no-loss banks and mainly serve
entrepre- neurs, industries, small businesses, and self-employment.
PAYMENTS BANK
This is a new and upcoming model of banking in India. It has been conceptualized and signed-off by
RBI with restricted operations. Maximum of Rs. One Lakh is acceptable per customer by these
banks. Like other banks, they also offer para-banking services like ATM cards, Debit- Credit cards,
net- banking, mobile banking etc. There are 6 payment banks in India :
1. Airtel Payment Bank
2. India Post Payment Bank
3. Paytm Payment Bank
4. Jio Payment Bank
5. Fino Payment Bank
6. NSDL Payment Bank
1. Acceptance of Deposits
2. Lending of Funds
3. Clearing of Cheques
4. Remittance of Funds
5. Lockers & Safe Deposits
6. Bill Payment Services
7. Online Banking
8. Credit & Debit Cards
9. Overseas Banking Services
10. Wealth Management
11. Investment Banking
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Functions of the Banking Industry
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CHAPTER NO. 3 RE-
SEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
In order to cope up with the emerging challenges due to tough global competitions, the way out
for this is to produce quality products at reasonable prices. This is possible only through an or-
ganization culture of quality consciousness and enhanced productivity. Optimal utilization of re-
sources especially the human resources are one sure way of meeting this objective. That’s why
proper induction of an employee is very important.
The topic selected for the study is “Selection Process”. The main theme of the project is the
analysis and interpretation of practices of the banks regarding selection process. A critical study
of the effectiveness of selection process and suggest ways for improvement. The problem lies in
identifying relationship, mutual understanding between the management and the employees. The
selectin process provides detailed information about hiring process adopted by banks so that the
management can take appropriate steps to improve and achieve the organization goals and help
to maintain the smooth relationshipbetween them.
Provides information about the performance ranks, basis on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
Provide feedback information about the level of achievement and behavior of subordinate
this information helps to review the performance of the subordinate, rectifying perfor-
mance deficiencies and to set new standards of work, if necessary
Provide information to diagnose deficiency in employee regarding skill, knowledge, de-
termine training and developmental needs and to prescribe the means for employee
growth provides information for correcting placement.
LIMITATION
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RESEARCH OBJECTIVES
The current research will be aimed at determining the Selection Process (Staffing &Recruitment) atdif-
ferent banks. The research will be focused on the following major issues.
To understand the internal Recruitment process
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 the better process of recruitment and selection.
To know about role of recruiter and selector
SCHEME OF RESEARCH
RESEARCH DESIGN
Research design means a specified framework for controlling the data collection. The research is
of descriptive in nature, which could provide an accurate picture of induction procedure
conducted in the organization. Descriptive research includes surveys and fact-finding inquiries of
different kinds. The research is of Ex post facto nature in which researcher no control over the
variables has. Statistical method lay stress on objectivity rather than rely on intuition and
judgment and average & percentages can easily be calculated.
1. Primary data
2. Secondary data
1. PRIMARY DATA
The primary data are those, which are collected afresh and for the first time, and thus
happen to be original in character. The data on the required information is collected from
actual persons using the product/ services. This data is more suited for the objectives of
the project.
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2. SECONDARY DATA
The data which have already been collected by someone else or taken from published or
unpublished sources and which have been already been passed through the statistical pro-
cess.
Secondary Data will be gathered from books and journals on selection process, data available
in different-2 companies’ websites, and other HRM websites.
FOCUS GROUP
SAMPLING METHODS
SAMPLE SIZE
TOOLS USED
DATA ANALYSIS AND INTERPRETATION
FOCUS GROUP
1. The main focus in this project is given on the Staffing and recruitment process of the
banks. If the bank is select the right candidate for the right person, then the company
has not to spend the money on the recruitment process, if the company canselect the
right candidate, the candidate can easily spend latest 5-7 years with the organization.
2. Second main focus is given in this project report is working hours and working en-
vironment of the banks. The company working conditions is suitable for allemploy-
ees or not.
3. Whether the employees are satisfied with the health, safety, welfare facility
provided by the banks or not.
4. Whether the increment process and promotion process are liked by the employees or
not.
And there are so many other thinks which is not taken in this project due to time shortage anddiffi-
culty in collection of the data.
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SAMPLING METHODS
SAMPLE SIZE
TOOLS USED
MOTIVATIONAL TOOLS
Motivating for work is inseparable to continue productivity. But work when itself serves as mo-
tivation then progress is inevitable. The organization must take great care to motivate its em-
ployees through various methods.
Promotion may be one of the best motivational factors. Promotional basis could be
o work performance
o qualification
o performance evaluation
o skill enhancements
o Initiative steps taken
Organization may also provide fringe benefits such as
WELFARE ACTIVITIES
The organization may adopt welfare policies such as
o Transportation facility
o Canteen facility with breakfast, lunch and dinner facility along with refreshments.
o Canteen could be free, subsidized, paid. But the most preferred one is through subsidized
mode.
o First aid facilities
o grievance handling
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Chapter4
DATA ANALYSIS AND INTERPRETATION
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DATA ANALYSIS AND INTERPRETATION
WORKING IN ORGANISATION
16% 12%
0-2 YEARS
32% 2-5 YEARS
40% 5-10 YEARS
MORE THAN 10 YEARS
Finding
From the chart that 48 employees are working for more than 10 years. Even no. of employees
working between 5-10 years are 30. This shows that most of the employees are satisfied with their
job. The attrition rate of the company is very low. This indicates that employee is satisfied and
their respondent were interviewed and it was found that employee to know while they are continu-
ing in their company for more than 10 year and followed that they are overall satisfied.
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2. What the different sources of knowing the job vacancy?
Findings
Tabular and graphical representation indicates 40% of employees come to know about the job opportunity
through advertisement given by the company in the leading newspapers. Consultants accounts to be 13%,
13% of them come to know about the job opportunities through friends and relatives and other like
employments exchanges share percent of 34%.
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3. What impact the job priority?
I
n
t
e
r
p
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Findings
Tabular and graphical representation shows the position of the better opportunities of bank during the
period of salary. 20% of the respondents depend upon the better opportunities, 53% of respondents
under image of the company, 7% of the respondents depend upon the salary, and 20% of the
respondents depend upon the work environment. According to analysis, most of the respondents
working on the image of the company and better opportunity.
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5. Selection is done on the basis of
Types of Selection
Particulars No. of Respondents % Of Respondents
Written test 20 33%
Practical test 16 27%
Oral interview 24 40%
Others 0 0%
Total 60 100%
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6. What atmosphere you prefer during interview?
Finding
Employee said that the atmosphereduring the interview was pleasant. Bank helps prospective
employee to face interview in a very cool manner so they don’t feel nervousand hesitation.
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7. Which type of interview you prefer?
Finding
representation shows the 47% of employees of banks have gone through personal interview and 40%
of them have gone through panel interview and others share 13%. Thus, bank adopts both personal and
panel interview technique to interview most of its candidates who apply for jobs.
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8. How was your interview?
Findings
Tabular and graphical representation reveals that about 53% of the employees feel that the way
inwhich the interview was conducted in a good manner, 27% of the employee feel that the
interview was upto fair, 20% of the employee feel that the interview was up to satisfactory level,
and nobody is unhappy with regard to conducting interview. It can be concluded that all employees
of banks are satisfied with theway in which the interview have been conducted.
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9. Do you feel people are aware of the selection process in bank?
Finding
Tabular and graphical representation shows 67% of employees are aware of the selection process in banks
and only 33% of employees do not know aware of the selection process in banks. We can conclude that a
greater number of the employees in banks know the selection process
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10. The main reason of job attractiveness.
Findings
Tabular and graphical representation reveals that 67% of employees have joined this company becauseof
job security, 27% of them for future prosperity and 6% of them for welfare opportunity. From the
above analysis it is very clear that a greater number of employees have joined banks because of job
security.
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11. Are you aware about the job description at the time of selection?
Findings
Above representation shows 60% of employees aware of the job description at thetime of selection,
and 40% of employees do not aware of the job description at the time of selection. From the above anal-
ysis, it is very clear that a greater number of employees aware of the job description at thetime of selec-
tion.
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FINDINGS
1. As per the survey, it is known that 47% of the respondents are above 41 years.
2. About 27% of respondents got the information through company employees and 53% of
theemployees got the information through other sources regarding recruitment.
3. About 73% of employee’s are graduates.
4. From the survey, it is noted that 40% of respondents came to know about the vacancy through
advertisement and 13% of respondents were through consultancy and 34% of respondents
were through others agency.
5. The main reasons for prospective employees being attracted towards jobs with banks were image
of the bank, good working environment and better opportunities for growth.
6. All of the respondents were happy with the job appointment information regarding interview date,
time and mode of correspondence.
7. Most 100% of the employees has told that the questions asked in the interview were relevant to the
job.
8. Most 73% of the employees said that both written test and oral interview was conducted for them.
Inselection process, most of the employees had gone through 2 stages.
9. Majority 100% of the employees said that the environment during the interview was pleasant.
10. Most 87% of the employee said that both Personal interview and Panel interview was
conducted for them.
11. 73% of respondents had said that interview method is being well planned and administered
in selectionprocess.
12. Majority of the respondents have joined this company because of job security and 27%
of respondentsfor future prosperity.
13. From the survey, it is noted 60% of the employees are aware of the job description at the
time ofselection.
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CHAPTER NO. 5
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CONCLUSION
From this study on the effectiveness recruitment and selection process reveals that the banks are
mainly going with wide distributions of advertisement for recruitment. Banks are getting right
person to the right job to meet the organizations requirements and to retain the employees.
It can be concluded that the recruitment procedure of the banks is satisfactory and
effective. According to the job description and job specification, interview methods vary
from job to job. Majority of the employees joined the banks just because job security and
future pro- spective. To face the future challenges, banks should take steps torecruit
talented young people.
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LIMITATION
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RECOMMENDATIONS
1) Banks must view on both individual’s and company’s needs assessment while hiring
people. Thisenables the employees to be more satisfied with their work.
2) Banks must hire candidates through external source of recruitment, so that there is a pump
of new blood to the organization. This helps in improvement of company’s creativity.
3) Banks should take into account the external factors of recruitment process. The
external factors are demand and supply of specific skills, labour market, unemployment,
legal and political considerationsetc.
4) Banks should make efforts to effectively communicate to the employees, so that they are
clear about the purpose / goal / objectives of the selection process when the
respondents are recommended for recruitment.
5) To sustain in the competitive corporate world, the banks should also search foralter-
natives of recruitment, such as employee learning, out sourcing and temporary em-
ployment etc.
6) Banks should focus on e-recruitment for cost saving, speed enhancement and also time
saving.
7) Evaluation of recruitment and selection must be done, to know the effectiveness of
job analysis in the organization.
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BIBLIOGRAPHY
Books
Journals
Zaharie, M. (at all) (2013), Job Recruitment and Selection Practices in Small and
Medium Organizations, Studia Universitatis Babes-Bolyai, Vol. (58) No. 2, pp-86-
94.
Lavigna, R. J., (at all) (2004), Recruitment and Selection of Public Workers: An
International Compendium of Modern Trends and Practices, Public Personnel
Management, Vol. (33), No. 3, pp. 237-253.
Dora s (2003), Anticipatory Socialization: The Effect of Recruitment and Selection
Experiences on Career expectations, Career Development International, Vol. (8), No.
4, pp. 182-197
Bagul, D. B. (2014), “Recruitment and Selection Process” At Rathi Transpower Private
Limited, PUNE, International Journal of Organizational Behaviour & Management Perspec-
tives, Vol. (3), No. 4, pp-1212-1214.
Websites
https://en.wikipedia.org/wiki/Human_resource_management
https://www.managementstudyguide.com/human-resource-management.html
https://www.managementstudyguide.com/human-resource-management-
articles.htm http://www.ncert.nic.in/NCERTS/l/lebs106.pdf
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QUESTIONNAIRE
QUESTIONNAIRE
Name:
Age:
Educational qualification:
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5) Selection is done on the basis of
a) Written test ( )
b) Practical test ( )
c) Oral interview ( )
d) Others ( )
11) Are you aware about the job description at the time of appointment?
a) Yes ( )
b) No ( )
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