29-11-2012, 01:16 PM
PROJECT REPORT ON ANALYSIS OF RECRUITMENT & SELECTION STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE LTD.
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EXECUTIVE SUMMARY
Today’s tight labor market is making it more difficult to find, recruit and select talented people for an organization. The competition for talent is intensifying as there are fewer qualified applicants available. This shortage of applicants makes it all the more important for organizations to be able to effectively attract, select, and retain quality candidates.
With many organizations offering a number of job opportunities, candidates can afford to be choosy when searching for their ideal job. Thus, the best searching procedure should be adopted by an organization. Once the organization has successfully recruited candidates, it must select the best one for the position under consideration. Organization uses various tools to help them select an individual. The selection tool is designed to obtain behavioral and motivational information about the candidates for effective selection system. For example, behavioral interviewing is a popular selection activity in highly effective selection system. In the future even more organizations plan to use this and other similar tools more intensively to select employees. Organizations realize that having an effective legally sound system in place is crucial to helping them select the right people for the right job. Finally better recruitment and selection strategies result in improved organizational outcomes. The more effectively organization recruit and select candidates, the more likely they are to hire and retain satisfied employees.
INTRODUCTION
The recruitment and selection procedure of the company determines the level of achieving organizational goals in the long run. As per definition it is all about selecting right person for the right job at the right time at the best possible position. Although it sounds quite simple but it is also not an easier job to evaluate a person with his knowledge, skills and abilities that may satisfy the core competency for the job so that his degree of willingness to pursue a job becomes positive. From job seeker’s perspective it is the core competency which matters much for a job. So it is the effective recruitment and selection procedure which determines not only the right candidate for a job but also a long-term accomplishment of organizational goals.
In this project the different techniques adopted by the company towards this effect have been identified. ICICI PRUDENTIAL, which is multinational company, has been chosen for studying their methods of recruitment and selection function because it has the probability of achieving more than 50% of the people to be placed for the right job, which reflects some of the unique ways for recruiting the candidates to fill up various vacancies.
The aim of the company is to achieve overall organizational goal not only by way of fulfilling the targeted top line but also employee satisfaction towards various position of job to the maximum level.
OVERVIEW OF INSURANCE INDUSTRY
With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs. 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This, itself, is an indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis.
Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long-term debt and equity for infrastructure projects. With long-term liability, they get a good asset- liability match by investing their funds in such projects.
LIFE INSURANCE MARKET:
The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs.1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen.
Innovative products, smart marketing and aggressive distribution- that's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.
Promoters:
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to you. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions. ICICI Company has 74% stake in the company, and Prudential plc has 26%.
ICICI Company
ICICI Company is India’s second largest company with an asset base of Rs.1,06,812 crore. ICICI Company provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Company services a growing customer base of more than 7 million customer accounts and 5 million bond holders’ accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centres and Internet companying (www.icicicompany.com). ICICI Company posted a net profit of Rs.1,206 crore for the year ended March 31, 2005. ICICI Company is the only Indian company to be rated above the country rating by the international rating agency Moody’s and the only Indian company to be awarded an investment grade international credit rating. The Company enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies.
Prudential PLC
Established in 1848, prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, companying, investment management and general insurance. In Asia, Prudential is UK's largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region.
Distribution:
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India with a network of over 83,000 advisors, and having commenced operations in 207 cities and towns in India. These include Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag.