LITERATURE REVIEW

Recruitment
It is the process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applicants are submitted. The result is a
pool of applicants from which new employees are selected. In simple terms, recruitment is
understood as the process of searching for and obtaining applicants for jobs, from among whom
the right people can be selected. A formal definition of recruitment is. Though, theoretically
recruitment process is said to end with the receipt of applications, in practice the activity extends
to the screening of applications so as to eliminate those who are not qualified for the job. The
recruitment industry has four main types of agencies employment agencies, recruitment websites
and job search engines, "headhunters" for executive and professional recruitment, and in-house
recruitment. The stages in recruitment include sourcing candidates by advertising or other
methods, and screening and selecting potential candidates using tests or interviews.
The general purpose of recruitment is to provide a pool of potentially qualified job
candidates, Specifically, the purposes are to:
1. Determine the present and future requirements of the organization in conjunction with its
personnel-planning and job-analysis activities.
2. Increase the pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by reducing the number of visibly,
underqualified job applicants.
4. Help reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of time.
5. Meet the organisations legal and social obligations regarding the composition of its work
force.

6. Begin identifying and preparing potential job applicants who will be appropriate candidates.
7. Increase organizational and individual effectiveness in the short term and long term.
8. 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 intereseted 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 enthusiams 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 of training and supervision, Furthermore, when
recruitments fails to meet 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. 4 Thus, the effectiveness of the recruitment process can play

a major role in determining the resources that must be expended on other HR activities and their
ultimate success.
According to Edwin B. Flippo, Recruitment is the process of searching the candidates
for employment and stimulating them to apply for jobs in the organisation. Recruitment is the
activity that links the employers and the job seekers. A few definitions of recruitment are:
A process of finding and attracting capable applicants for employment. The process begins
when new recruits are sought and ends when their applications are submitted. The result is a
pool of applications from which new employees are selected.
It is the process to discover sources of manpower to meet the requirement of staffing schedule
and to employ effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.
Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organisation so that the management can select the right
candidate for the right job from this pool. The main objective of the recruitment process is to
expedite the selection process. Recruitment is a continuous process whereby the firm attempts to
develop a pool of qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger initiates an
employee requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
i.e. the needs arising from changes in organization and retirement policy.

ANTICIPATED
Anticipated needs are those movements in personnel,

RESEARCH
METHODOLOGY

TITLE:
To determine customer-buying behavior with a focus on market segmentation for HDFC
Standard Life Insurance.

TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with studying the buying

pattern in

the insurance industry with a special focus on HDFC Standard Life Insurance. The various
segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels etc
will also studied.

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100 people. This data can
be explorated to take in the trends across the industry. The significance for the industry lies in

studying these trends that emerge from the study. It is a rapidly changing and evolving sector.
People are only beginning to wake up to its vast possibilities. A study like this can attempt to
guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful informtaion of the company, the insurance industry and
also provide marketing ways, methods of HDFC Standard Life insurance.

SAMPLING METHODOLOGY
SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus the sampling came out to be
judgemental and convenient.

Sampling Unit:
The respondants who were asked to fill out questionnaires are the sampling units. These
comprise of employees of MNCs, Govt. Employees, Self Employeds etc.

Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different
areas of Jalandhar due to time constraints.

Sampling Area :
The area of the research was Jalandhar..

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of DELHI and does not necessarily shows a
pattern applicable to all of Country .A small number of 100 also does not show the pattern of
the whole city.

2. Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.

4. The training period was very less.

CHAPTER 6

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS & INTERPRETATION

DATA REPRESENTATION OF PEOPLE WHO ARE EMPLOYED

DATA GIVES EMPLOYMENT STATUS OF THE

INSURED RESPONDENTS.

Table 1

NO.OF
RESPONDENT

EMPLOYMENT

SHARE (%)

YES

92

92

NO

EMPLOYMENT

8%
YES
NO

92%

INTERPRETATION

The data shows that the majority of respondents are employed which would depict the better
picture of the marker scenerio.
DATA SHOWING ANNUAL INCOME OF RESPONDENTS

Table 2
ANNUAL INCOME

NO.OF
RESPONDENTS

SHARE (%)

>5L

45

45

5L-10L

25

25

1OL-15L

20

20

15L-20L

10

10

INCOME
10%
20%

>5 LAKCS
45%

5-10LACS
10-15 LACS
15-20 LACS

25%

INTERPRETATION

It can be noted that maximum amount of people (45%) fall in the category of > 5 lacks slot .

DATA SHOWS PEOPLE HAVING INSURANCE

Table 3
RESPONSE

NO. OF
RESPONDENTS

SHARE (%)

Yes

70

70%

No

30

30%

NO; 30%

YES; 70%

Fig 7.6

INTERPRETATION

Of the sample size of 400 surveyed respondents 70% of the respondents are having
Insurance policy.

30% of the respondents are either not having any Insurance policy at present or their policy
is already matured.

And at present 100% of the respondents are with the view that Insurance is a tool to protect
your family

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

Table 4
NO.OF
RESPONDENTS

BENEFITS

SHARE (%)

Cover Future Uncertainty

55

55

Tax Deductions

20

20

Future Investment

25

25

TOTAL

100

100

Future Investment; 25%

Cover Future Uncertainty; 55%

Tax Deductions; 20%

Fig7.2

INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and
future investments respectively.
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED
RESPONDENTS
Table 5
FEATURE

NO.OF
RESPONDENTS

SHARE (%)

Money Back Guarantee

15

15

Larger Risk Coverance

37

37

Easy Access to Agents

Low Premium

30

30

Companys Reputation

11

11

TOTAL

100

100

Companys Reputation; 11 Money Back Guarantee; 15

Low Premium; 30
Larger Risk Coverance; 37
Easy Access to Agents; 7

Fig 7.3

INTERPRETATION

Majority of the respondent (37%) found Larger risk coverance as the most attracted
feature of the all.

DATASHOWSPEOPLEPREFERENCEININSURANCECOMPANIES
Table6
CATEGORY

NO. OF
RESPONDENTS

SHARE (%)

PRIVATE

55

55%

GOVERNMENT

45

45%

CATEGORY

PRIVATE
GOVERNMENT

45%
55%

INTERPRETATION

There are more number of people employed in Private sector(55%) as compared to 45% of
people in govt. Sector.

DATA GIVES PREFERECE OF RESPONDENTS OF INSURANCE COMPANIES

Table 7
COMPANYS NAME

NO.OF
RESPONDENT

SHARE (%)

L.I.C.

78

78

HDFC

ICICI PRUDENTIAL

10

10

SBI LIFE

RELIANCE LIFE
INSURANCE

100

100

TOTAL

SBI; 7% REL; 3%
ICICI ; 10%
HDFC; 2%

LIC; 78%

Fig 7.1

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1
by that percent of respondents.

DATA SHOWING THE REASON FOR PREFERENCE OF AN INSURANCE POLICY

TABLE 8
REASON

NO.OF
RESPONDENT

SHARE (%)

EASY ACCESSABILITY

40

40

MORE SECURITY

20

20

BETTER SECURITY

20

20

MORE INFORMATION &

HELP

10

10

CUSTOMER
ORIENTATION

10

10

100

100

TOTAL

REASON
10%

EASY ACCESSABILITY

10%

40%

20%

MORE SECURITY
BETTER SECURITY
MORE INFORMATION

20%

CUST. ORT

INTERPRETATION
It can be noted that the reason for maximun people for prefering the policy is easy accessability
followed by people who look for better & more security
DATA SHOWINGTHE TIME SPAN OF THE INSURANCE PLAN

Table 9
NO.OF
RESPONDENTS

NO. OF YEARS

SHARE (%)

>5YRS

45

45

5YRS-10YRS

25

25

1OYRS-15YRS

20

20

15YRS-20YRS

10

10

NO. OF YEARS
10%
>5 YRS

20%

45%

5-10YRS
10-15YRS
15Yrs<

25%

INTERPRETATION

It can be noted that maximum amount of people look for short term insurance as compared to
10% of those who go for long term.

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

Table 10
RESPONSE
Paying tax

NO. OF
RESPONDENTS

SHARE (%)

100

100%

0%

100

100%

Not paying tax

Total

Paying tax ; 100%

Fig 7.11

INTERPRETATION
Of the sample size of 100 respondents, all the respondents are paying tax

 DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING

Table 11
INVESTMENTS

NO. OF
RESPONDENTS

SHARE (%)

LIC

51

51%

NSC

33

33%

Bonds

32

32%

PPF

25

25%

PF

21

21%

EPF

11

11%

EPF ; 6%
PF; 12%

LIC ; 29%

PPF; 14%
Bonds ; 18% NSC; 19%

Fig7.12

INTERPRETATION

51% of the respondents save their tax by investing in LIC, which is the highest among all
Investment. This shows that most people for getting taxes benefits invest in LIC.

33.25% of the respondents do their tax saving by investing in NSC.

32.25% of the respondents to their tax saving by investing in bonds.

 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

Table 12
RESPONSE

NO. OF
RESPONDENTS

SHARE (%)

Satisfied

60

60%

Not satisfied

40

40%

Not Responded

0.0%

100

100%

Total

Not satisfied ; 40%

Satisfied ; 60%

Fig 7.9

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy.

40% of the respondents are not satisfied with their existing policy.

In this case all of those who have taken a policy have responded.

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

Table 13
POLICY TYPE

NO. OF
RESPONDENTS

SHARE (%)

LIFE POLICY

75

75

NON LIFE POLICY

25

25

BOTH

45

45

BOTH; 31%

LIFE POLICY; 52%

NON LIFE POLICY; 17%

Fig 7.4

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have both. (The % is
calculated out of 280 positive response)

CHAPTER 7
FACTS & FINDINGS

FACTS/FINDINGS

1.As the people think that insurance is a tool to protect their family & a tax saving device. They
are aware of the fact & realizing its, importance. The company should try to expand & build up
its infrastructure because there is a large potential for insurance in India.
2.Company should come up with more branches in Delhi with the objective and goals to meet
the demands & expectations of the public. Because the entrance of private players will increase
the competition and it would be a tough task to secure a good position in market.
3.Since HDFC STANDARD LIFE INSURANCE LTD is leading with several companies
policies it should be easy for them to penetrate into the market and secure a good position if they
pay greater attention to the service part provided to their customer and thereby forming a long
and trusted relationship.
4.As seen from the survey that at present 70% of the customer are having insurance policy out of
which 87.5% of the customer are planning for new investments. So it can be a good potential for
the company and they should make an attempt to trap these customers.
5. 43% of the customer is even ready to go for insurance if a service provider away from their
home is providing it. But intend they should provide good products and services. The company
should try to convince these customers and get them in its favor.

RECOMMENDATIONS

RECOMMENDATIONS

To make people aware about the benefits of HDFC standard life insurance policy, following
activities promotional activities should be carried out:
.Printed media
. Hoardings & Banners
. continues telivision commercials.

Company should come up with more branches in Delhi with the objective and goals to meet
the demands & expectations of the public in order to provide people with better customer
satisfaction.

Since HDFC Standard Life Insurance Company Ltd is leading with several companies
policies it should be easy for them to penetrate into the market and secure a good position if
they increase the number of branches and diversify their business to various other regions. .

As seen from the survey that at present 70% of the customer are having insurance policy out
of which 87.5% of the customer are planning for new investments. So it can be a good
potential for the company and they should make an attempt to tap these customers.

43% of the customer is even ready to go for insurance if a service provider away from their
home is providing it. But intend they should provide good products and services. The
company should try to convince these customers and get them in its favor.