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, Sitapur 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 in Sitapur.

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 Shri O.P. Bhatt 1. Chairman Shri S.K. Bhattacharyya 2. MD & CC&RO Shri R. Sridharan 3. MD & GE(A&S) 4. Dr. Ashok Jhunjhunwala 5. Shri Dileep C. Choksi 6. Shri S. Venkatachalam 7. Shri. D. Sundaram 8. Dr. Deva Nand Balodhi 9. Prof. Mohd. Salahuddin Ansari 10. Dr.(Mrs.) Vasantha Bharucha 11. Dr. Rajiv Kumar 12. Shri Arun Ramanathan 13. Smt. Shyamala Gopinath TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

The State Bank of India, the countrys 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 Indias 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

7

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

Conceptual Review

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. A general recruitment process is as follows: Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: Posts to be filled Number of persons Duties to be performed Qualifications required

Preparing the job description and person specification. Locating and developing the sources of required number and type of employees (Advertising etc).

Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making

1. Identify vacancy 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, 10

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.

11

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.

12

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.

13

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.

14

Recruitment at SBI Bank

RECRUITMENT STEPS IN STATE BANK OF INDIA

Vacancies identified. Job description and person specification designed. Available vacancies are advertised. Selection test conducted as per scheduled date. Short listed candidates are called for final interview. The successful candidates are being informed through a written offer. The new joiners further attend in-house training

Whenever vacancies are identified, this may arise out of promotion, retirement, VRS or for new openings. The Central recruitment and promotion department conducts the recruitment steps further for manpower acquisition.

The form of recruitment here is a centralized one.

State bank Of India basically recruits through external resources. It searches for clerical cadre, probationary officers, marketing and recovery officers, management executives.

15

The selection criteria for each are different. For clerical cadre - the candidates are requested to apply online through the banks website. Educational qualification Required1. Minimum 12th standard (10+2) pass or equivalent qualification there of with a minimum of 60% marks (55% for SC/ST/PWD/XS). Or A degree from a recognized University (graduation level) with a minimum of 40% marks (35%marks for SC/ST/PWD/XS)

2. Should be able to write and speak English fluently

3. Knowledge of other Indian language will be added qualification. Age Minimum age 18 years and maximum 28 years. Application fee charged : Rs. 250/- for General and Rs. 50 /for SC/ST/PWD/XS

Selection procedure
Selection is made on the basis of performance in the written test and interview taken together. The written test consists of objective type questions1. General Awareness 2. General English 3. Quantitative Aptitude 4. Reasoning ability 5. Marketing Aptitude/Computer knowledge.

16

Way to apply: - Candidates are required to go to any CBS Branch of State Bank of India and pay the amount of fees and get receipt from the branch. The candidates are required to apply online through website www.statebankofindia.com and http://www.sbi.co.in/. No other means/mode of application are accepted. Salient features mentioned in the advertisements are as follows:

1. Scale of Pay : 4410-215/3-5055-335/3-6060-470/4-7940-500/3-9440-560/4-11680970/1-12650-560/1-13210

2. Emoluments : The total starting emolument of a Clerical Cadre employee payable at Metro like Mumbai will be around Rs. 8000/- per month for Graduates inclusive of D.A. and other allowances at the current rate.

Allowances may vary depending upon the place of posting. The new recruits must have flair for marketing and will be required to make customer calls and provide banking services, advisory services and cross sell products etc. inside and outside Bank premises. The duties involve e extensive outdoor travelling. Depending upon requirement, there will be flexible working hours and working in shifts.

3. Nationality / Citizenship : A candidate must be either i) a Citizen of India or ii) a subject of Nepal or ii i) a subject of Bhutan or iv) a Tibetan refugee who came over to India before 1st January, 1962 with the intention of permanently settling in India or v) a person of Indian origin who

17

has migrated from Pakistan, Burma, Sri Lanka, East African countries of Kenya, Uganda, the United Republic of Tanzania (formerly Tanganyika and Zanzibar), Zambia, Malawi, Zaire, Ethiopia and Vietnam with the intention of permanently settling in India, provided that a candidate belonging to categories (ii), (iii), (iv) and (v) above shall be a person in whose favour a certificate of eligibility has been issued by the Government of India. A candidate in whose case a certificate of eligibility is necessary, may be admitted to the examination/ interview conducted by the Bank but on final selection, the offer of appointment may be given only after the necessary eligibility certificate has been issued to him by the Government of India.

4. Definitions : Ex-Serviceman : Only those candidates shall be treated as Ex-Servicemen who fulfil the revised definition as laid down in Government of India, Ministry of Home Affairs, Department of Personnel and Administrative Reforms Notification No.36034/5/85/ Estt(SCT) dated 27th October, 1986 as amended from time to time.

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

18

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 ExServicemen 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 ExServicemen 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

19

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.

20

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.

21

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.

22

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

23

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 companys 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.

24

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

25

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.

26

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 Companys size Cost of recruitment Companys growth and expansion

2) EXTERNAL FACTORS

Supply and Demand factors Unemployment Rate Labour-market conditions Political and legal considerations Social factors Economic factors

27

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 governments 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 organisations personnel policy like enriching the organisations 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 Organisations personnel policies Recruitment sources Recruitment needs

28

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.

29

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.

30

 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.

31

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 employees 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.

32

Objective of Study
Main Objective
The main objective of my project is to identify the recruitment and selection process at SBI Sitapur.

Sub Objective s
To understand the need and importance to recruitment process. To find merits and demerits of Recruitment process done at SBI, Sitapur. 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.

33

RESERCH METHODOLOGY
Research can be defined as the search for knowledge, or as any systematic investigation, with an open mind, to establish novel facts, usually using a scientific method. The primary purpose for basic research (as opposed to applied research) is discovering, interpreting, and thedevelopment of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research methods The goal of the research process is to produce new knowledge. This process takes three main forms (although, as previously discussed, the boundaries between them may be obscure.): Exploratory research, which structures and identifies new problems Constructive research, which develops solutions to a problem Empirical research, which tests the feasibility of a solution using empirical

evidence

Research can also fall into two distinct types: Primary research (collection of data that does not yet exist) Secondary research (summary, collation and/or synthesis of existing research)

34

In social sciences and later in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research: Qualitative research (understanding of human behavior and the reasons that govern

such behavior)

Quantitative research (systematic empirical investigation of quantitative properties

and phenomena and their relationships) Research is often conducted using the hourglass model Structure of Research.[1] The hourglass model starts with a broad spectrum for research, focusing in on the required information through the methodology of the project (like the neck of the hourglass), then expands the research in the form of discussion and results.

RESEARCH TYPE I used descriptive research and exploratory research design in our studies. Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. Here I also tried to find out the main cause why there is perceptual blocking of the Indian customers towards internet banking. The methods involved range from the survey which

35

describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.

Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling procedure

Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions

DATA COLLECTION Primary Data: Structured Questionnaire Secondary Data: Online Database, Journals, Surveys

Certain schemes yield more fruitful results in certain conditions and with some specific objectives. Needless to say that management practices differ from organisation to

organisation. But the fact is that success does not follow automatically, the people who implement the system that matters just as the authority without acceptance have no meaning. Recruitment process without trust of employees and organisation has no value how hobble the objective may be so an attempt is made to study the attitude of those who

36

are participating in recruitment process before giving any suggesting and concluding remarks. For this purpose research has taken opinion of 20 executives and 50

worker/employee of different departments/sections of the organisation.

Research type- Exploratory Data type: - Primary and Secondary data Sample Size 70 Respondents (20 Executives and 50 workers/Employees) Sample Area- State bank of India, Sitapur (Main Branch, ADB Branch, Aryanagar Branch) Instrument- Questionnaire 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 Questionnaire.

SECONDARY DATA The data that has been collected by others is called secondary data. The secondary source of information has been collected from companys internal sources like brochures, books and the websites.

37

Data Analysis & Interpretations

CANDIDATES WILLINGNESS TO JOIN THE BANK

Chart Showing Employees Willingness to Join the Company

23%

17%

5% 28% 11%

16% Reputation of the Company Job Prospect Working Environment Location of the Company Salary Package Career Growth Opportunity

Interpretations
From the chart it can be understood that most of the employees are inspired by the working environment of the BANK which resembles the personal traits of the Indians. I can also see that matters much followed reputation of the BANK and salary package which comprised 11% and 16% respectively. Job prospect plays a minor role in the minds of a candidate who had already joined the BANK. Location of the BANK (which comprised 5% of the sample size) where majority of the employees are qualified with technical who in most of the cases dare to bother it.

38

MOST RELIABLE TYPE OF INTERVIEW IS

Chart Showing the Reliable Type of Interview is

7%

36%

36%

21%

Behavioral

Situational

Structured

Stress

Interpretations
I tried to find out the most reliable type of interview according the employee. They expressed different view. According to the sample employees. I found that behavioral interview is most reliable and this view was supported by 36% of the sample employees. Similar support was begged by the situational interview, while 26% structured interview and only 7% favored stress interview. Corresponding to this data I have drawn a pie chart above: -

39

BEST WAY TO RECRUIT PEOPLE

Chart Showing the Best way to Recruit People is

15%

40%

20%

25%

Advertisement

Walk-ins

Variable

Search Firms

Interpretations
The employees at SBI expressed their varied views about the best way, according to

them, to recruit people. The employees in SBI bear an opinion (about 40% of the sample) that advertisement is the best way to recruit people. While to 25% of the sample employees feel that walk-ins is best way while 20% feel that variable ways are the best. Others feel that recruiting people from search firms in a best way.

40

RESPONSE GIVEN BY THE STAFF ABOUT THEIR QUERY

Chart Showing Employees Satisfied with the Response given by the Staff about Query

6%

Yes No

94%

Interpretations

My survey clearly concludes that response of the BANK to any query made by the employees was absolutely good since 94% of my survey favors to this. 6% ratio of unsatisfied can also be further reduced if communication system is further improved. Corresponding to this data I have drawn a pie chart

41

HOW CANDIDATES ARE RECRUITED IN THE BANK ?

There are various ways of recruiting candidates in the BANK as depicted in the chart below: -

Chart Showing Employees Recruitment Process

6% 6% 9% 85% 3%

Written Exam. Written Exam, G.D. & Interview

Written Exam & Interview Others

Interpretations
From the chart it is quiet clear that the BANK adopts various processes for recruiting the right candidate. Actual recruitment procedure followed by the BANK is by conducting written examination followed by interview which comprised 85% of my sample survey of 36 employees. But still some candidates are also chosen through written exam, GD& interview comprising only 6% and others comprising only 3%. These others include the reference of the existing employees within the organization itself.

42

JOB SPECIFICATION OF THE EMPLOYEES

Chart Showing Job Specification of the Response of the Employees

3%

Yes No

97%

Interpretations
Almost all the candidates got the specified jobs offered to them. This implies that the BANK has the organized manpower planning and well organized recruitment policy as shown in the following chart: -

From the chart above it crystal clear that the candidates get exactly the same job as specified. So from the BANKs perspective it is a good sign for the overall growth & development. Still some employees who comprised only 2.33% of my sample study.

43

THE ATTITUDE OF H.R. MANAGER

Chart Showing what employees feel about the Attitude of H.R. Manager

13%

Good Very Good 57% 30% Excellent

Interpretations

The chart below depicts that most of the employees are doing service as per my survey of 20 employees. Most of the employees are satisfied with the attitude of H.R. Manager. 13% says Good attitude, 30% says Very Good and 45% says the attitude of H.R.

44

Corresponding to this data I have drawn a pie chart below: -

Chart Showing the Primary Source of Information for Recruiting People

25%

40%

15%

20%

Managerial

Testing

Recruiters Themselves

Job Analysis

Interpretations
THE PRIMARY SOURCE OF INFORMATION FOR RECRUITING PEOPLE SHOULD BE

According to the sample employee the primary source of recruiting people is Managerial. However, Testing & Recruiters Themselves source are the second most favored source of Recruiting people. Whenever the process of Recruitment is to be carried out. Managerial source of Recruiting people should be heavily considered

45

FINDINGS
Under recruitment Procedures Requisition System is incorrect because the replacement does not require fresh approval, unless it is in place of termination. The data banks are not properly maintained. The dead bio-data are never being destroyed. Proper induction is not given to all the employees. It reserves to only a few levels. Salary comparison is not justifies. Old employees are demoralized by getting less surely then new employee. Salary fixation has a halo effect. Recruitment procedure is not fully computerized. Manpowers are recruited from private placement consultancy, who are demanding high amount of fees, where as HRD Department is not fully utilised to recruit manpower by advertisement. Before recruitment cost benefit analysis is not done properly. It causes manpower surplus which makes loss in the industry. Manpower is recruited from reliable source however efficiency does not recognise. 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. 46

Reference check is done. Reservation of seats according to the caste factor plays an important role. Marketing and recovery officers are recruited on contractual basis and later made 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 facts The application fee too varies by the caste factor. Many feel training should be conducted based on individual needs. Ads generate a wide range of pool of applicants. Quota reservation isnt appreciated by many while some find it as an equal employment opportunity.

47

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 recruitment in reality. It has given a way to in depth understanding of the hiring 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 confusion with the job description, eligibility criteria and few terms with proper definition and explanation. Advertisements are highly informative in nature. Application forms are being filled online. The large pool of talents then sit for a written aptitude test and the selected ones further move on with personal interview. The successful ones are being informed and then the induction program is being conducted for them.

As far as the recruitment process is concerned, it is a standard process being followed but with changing time and expansion or innovations in banking technology 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 with its idea and unique idea. It has good manpower and provides good facilities to its employees. The majority of companys profitability ratios shows upward trend. The performance of the company can be considered as considered as satisfactory in time of recession As per my opinion STATE BANK OF INDIA has a wide scope to develop in future.

48

LIMITATIONS

The topic was such that it required vast and thorough study necessitating complete enumeration of the organization and analysis of several issues.

Following are the limiting factors: -

Collecting information from people during the working hours was difficult.

Due to work shifts it was difficult to approach the employees.

Some employees did not have in depth knowledge about their work and were

not able to give relevant information.

Most of the employees were hesitant in giving frank opinions and answer

during personal interview. Time constraint is one of the limiting factors.

49

RECOMMENDATIONS

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 employee in todays 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.

The Data Banks should be computerized. Each level of employee should be formally inducted and introduced to the Departmental Head. If not all levels, at least Asst. Manager and above category of employees.

Salary comparison should be seriously done to retain the old employees. Proper salary structure to be structured to attract people and make it tax effective. Cost benefit analysis should be alone before creating a position or recruitment of manpower.

Recruitment process should be fully computerised.

50

External source should be given equal importance with internal source. By which new brain will be inducted in the BANK with skill, talent, efficiency etc.

Manpower planning should be followed before recruiting. Proper inquiry should be done regarding previous employment of a candidate before recruitment to avoid industrial disputes.

51

BIBLIOGRAPHY
Principles and practice of Management by C.B. Gupta. C.R Kothari, Research Methodology, pub. New age Techno Press 2nd Revisited edition C.N Santoshi, Marketing Research, Pub. NHP, 3rd Edition Human Resource Development by U.B. Singh

Management of human Resource.

Dynamic of personnel administration by M.N. Rudrabasavaraj.

www.SBI .com

SBI manual

52

QUESTIONNAIRE

Questionnaire circulated among executives

Yes

No

No Response

1. Are you in support of recruitment policy?

2. Whether the existing recruitment policy is linked to productivity? 3. Do you feel that manpower recruitment has been rationalised by way of automation? 4. Whether the existing recruitment policy is getting will supports for the top management? 5. What are the benefits you are deriving from the existing recruitment policy? a) Reduction on labor cost? b) Effective utilisation of human resources? c) Maintaining timing in recruitment and staffing schedule?

6. Do you feel that job evaluation and job analysis helps

in manpower recruitment in your organisation? 7. Do you think that the personal recruited from external sources is more desirable than the internal sources? 8. Whether cost benefit analysis is done before

recruitment?

53

9. Are you satisfied with the existing recruitment system of the organisation? 10. Do you feel that performance appraisal helps in recruitment process? 11. Do you feel that training will effect to recruitment process? 12. Do you think job rotation will affect the recruitment policy?

13. How are you controlling the shortage and excess of manpower?

a) By employing casual worker

b) c) By employing extra hours By lay off / retrenchment

AN EXAMPLE OF QUESTIONNAIRE CIRCULATED AMONG

54

EMPOLYEES/ WORKMEN:

Yes

No.

No. Response

1. Are you satisfied with the existing recruitment policy in your organisation? 2. Do you feel work load in your department? 3. Do you feel of your optimum utilisation? 4. Do you satisfied with your job? 5. Do you feel that motivation is main factor for optimum utilisation of existing manpower? 6. Do you feel that recruitment of lower level staff from external source is desirable than internal source? 7. Do you feel that training imported by your organisation helps in improving your performance?

55