PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS

Index

Sr CONTENTS Page No
No.
1. CHAPTER 1:- Introduction

1.1 Introduction 1
1.2 What is Recruitment & Selection Process 2
1.3 What is Banking 3
1.4 History of Banking 3-6
Recruitment & Selection Process of Banks 6
1. Central Bank 6-10
2. Commercial Bank 10-16
3. Co-operative Banks 16-18

2. CHAPTER 2:-Research Methodology

 Research Design
 Research Methodology
 Objective of the study 19-22
 Scope of the study
 Limitations of the study
 Collection of data
1.Primary data
2.Secondary data

3. CHAPTER 3:-Literature Review 23-29

3.1 Recruitment 29-35
3.2 Selection 35-36
3.3 Factors affecting Recruitment & Selection Process 36-37
3.4 Challenges of Recruitment & Selection 37-38
3.5 System approach to Recruitment & selection

4. CHAPTER 4:-Data Analysis,Interpretation and Presentation

 Data Analysis 41-58
 Data Interpretation
 Interpretation of data
1) Qualitative data interpretation
2) Quantitative data interpretation
5. CHAPTER 5:-Conclusion 59

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CHAPTER 1
INTRODUCTION

Human resource is the most precious asset to any organization. Unlike other
assets, people are the only greatest potential asset and the only greatest potential
liability that an organization will acquire as it moves about its business. People are
individuals who bring their own perspectives, values and attribute to organizational life
and when managed effectively, these human traits can bring considerable benefits to
organizations. As we move through the 21st century where a globalize workforce is the
basis of competition we find that the principles of human resource planning,
recruitment, selection and development are of prime importance. And to manage a
diverse workforce effectively, an organization must hire and promote the most capable
candidate for a job, while being mindful of the necessity to build a workforce that is
representative of the greater business community. This may be achieved through using
more appropriate and inclusive recruitment and selection strategies.
Recruitment and selection process play an important role to attracting and
appointing qualified personnel. Getting the right people in the right place at the right
time doing the right job is an essential element of recruitment and selection process in
any organization. An effective approach to recruitment and selection process can help
an organization to maximize the competitive advantages by choosing the best pool of
candidates quickly and cost efficiently.
Recruitment and selection of human resources is expensive both in terms of
time and money, and it is therefore important that the process is carried out smoothly
and efficiently and results in the appointment of a person who fits the job. Attracting
highly qualified and skilled employees is important for an organization to compete
effectively both in national and global markets. But mismatch between the candidate
and job can cost an organization a great deal of money, time and energy. That’s why it
is vital that organizations select people with the quality essential for continued success
in this competitive global village of today. The only means of achieving this success is
through proper recruitment and selection practices.

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Human resource practitioners and academics worldwide hold the belief that,
survival,growth and development of an organization grossly depend on an effective
and efficient culture of recruitment and selection of people endowed with broader and
deeper range of core competencies, preferred attitudes, knowledge, skills and
experiences. The ultimate goal of recruitment and selection of human resource is to
bring to bear on organizations, preferred attitudes, behavior and culture to elicit better
performance.

1.1. What is recruitment process ?

Recruitment is a process of identifying, screening, shortlisting and hiring
potential resource for filling up the
vacant positions in an organization. It
is a core function of Human Resource
Management. Recruitment is the
process of choosing the right person
for the right position and at the right
time.
Recruitment also refers to the
process of attracting, selecting, and appointing potential candidates to meet the
organization’s resource requirements. The hiring of the candidates can be done
internally i.e., within the organization, or from external sources. And the process
should be performed within a time constraint and it should be cost effective.

What Is Selection Process ?

Selection is the process of

picking or choosing the right
candidate, who is most suitable
for a vacant job position in an
organization. In others words,
selection can also be explained as
the process of interviewing the

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candidates and evaluating their qualities, which are required for a specific job and
then choosing the suitable candidate for the position.
The selection of a right applicant for a vacant position will be an asset to the
organization, which will be helping the organization in reaching its objectives.
Different authors define Selection in different ways. Here is a list of some of the
definitions −
1. Employee selection is a process of putting a right applicant on a right job.
2. Selection of an employee is a process of choosing the applicants, who have
the qualifications to fill the vacant job in an organization.
3. Selection is a process of identifying and hiring the applicants for filling the
vacancies in an organization.
4. Employee selection is a process of matching organization’s requirements
with the skills and the qualifications of individuals.
A good selection process will ensure that the organization gets the right set of
employees with the right attitude.

1.2. What is banking?

Banking is an industry that handles cash, credit, and other financial
transactions. Banks provide a safe place to store extra cash and credit. They offer
savings accounts, certificates of deposit, and checking accounts. Banks use these
deposits to make loans. These loans include home mortgages, business loans, and car
loans.
Banking is one of the key drivers of the U.S. economy. It provides the
liquidity needed for families and businesses to invest in the future. Bank loans and
credit mean families don't have to save up before going to college or buying a house.
Companies use loans to start hiring immediately to build for future demand and
expansion.

1.3. History of Banking in india

Origin of banking activities in India can be traced back to ancient times. In
the Indian historical perspective, the presence of institutional lending had its
presence in Arthshastra of Kautilya during the Maurya period. There were financial
instruments like “Adesha” which were equivalent to Bill of Exchange. There is a lot

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of references which are available in ancient Indian literature regarding the existence
of an indigenous banking system that financed the trade and commerce in that period.
The businessman like Shroff, Seth, Sahukars, and Mahajans, etc used to carry the
activities of banking in ancient times.
The first bank of India is Hindustan bank which was established at Calcutta
in 1770 by European management. It was liquidated in 1830. In 1687, East India
Company moved its headquarters from Surat to Mumbai. Three presidency banks
were set up under charter of East India Company as Bank of Bombay, Bank of
Madras, and Bank of Calcutta as follows.
2nd June 1806: Bank of Calcutta was established, it was a bank of Bengal in
1809.
15th April 1840: Bank of Bombay was established.
1st July 1843: Bank of Madras was established.
In 1921, the three presidency banks were amalgamated to form Imperial
Banks of India. In 1955 Imperial Bank of India was nationalized and renamed as State
Bank of India. Thus state Bank of India is the oldest Bank in India that still exists
today.
The oldest join stock bank, which has multiple shareholders, was Bank of
upper India was established in 1863. This bank failed in 1913. The oldest joint stock
bank which still exists is Allahabad Bank. It was established in 1865. The first bank
with limited liability and managed with Indian management board was a bunch
commercial bank, which was established in 1881 at Faizabad. This bank failed in 1958.
The first bank solely managed by Indians was Punjab National Bank established in
Lahore in 1895. The period between 1906-1911 the activities of banking were inspired
by the Swadeshi movement. This movement inspired the businessmen and political
activists to form banks for the India community.
As a result, a number of Banks which were set up and still functioning, are
Catholic Syrian Bank, the south Indian bank, Bank of India, Corporation Bank, Indian
Bank, Bank of Baroda, Canara Bank, Central Bank of India. The period of the first
world war (1914-1918) witnessed the indirect boost to the Indian economy due to war-
related economic activities, but its turbulence caused a collapse of at least 94 banks
between the period 1913-1918.

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In the post-independence period, Govt. of India played an active role in the

economic life of the nation. It envisaged a mixed economy by adopting the industrial
policy resolution in 1948. The major steps in this regard included.
Indian central Banking Authority was established in as Reserve Bank of India
in 1935, which was nationalized on 1st 1949 under the RBI transfer of public
ownership Act 1948.Enactment of RBI Act 1949 to regulate, control and inspect the
banking operation in India.The RBI all 1949, provided that every branch of the
existing bank shall be opened with the permission of RBI and no two banks will have
common directors.
The Govt. constituted SBI to act as the principal agent of RBI and to handle
banking transaction of Union Govt. and State Govt. all over the country. The banks
owned by the princely states like, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Patiala, State Bank of Travancore, State Bank of Bikaner and Jaipur and
State Bank of Saurashtra were nationalized and made as subsidiaries of State Bank of
India.
The Govt. of India issued the Banking companies (acquisition and transfer of
undertaking) ordinance 1969 and nationalized 14 largest commercial Banks with effect
from 19th July 1969. The second round of nationalization of six more banks was
followed in 1980 for the purpose of more control over credit delivery. With this, the
Govt. controlled our 91% of the banking business of India. Later on in the year 1993,
Govt. Merged. New Bank of India with Punjab National Bank.Liberalization in 1990
In early 1990, Govt. gave license to a number of private sector financial institution for
retail banking. These banks came up as a new generation Tech-Savy Banks including
Global Trust Bank, Indus Ind Bank, UTI Bank (renamed as Axis Bank), ICICI Bank
and HDFC Bank. The Global Trust Bank was later amalgamated with Oriental Bank of
Commerce with the rapid growth of the Indian economy revitalized the banking sector
in India. As a second step, foreign banks which had a 10% cap in voting rights for
foreign direct investors (FDI), were allowed up to 74% with some restrictions. By
2010, the range and reach of banking products were rapidly grown along the Indian
cross-section of society.
However, the presence of private and foreign Banks in rural areas still
remains fairly a subject challenge. Indian Banks in general, have quality of assets,
strong and transparent balance sheets as compared other Banks in comparable
economies in the region. Due to the growth of Indian economy in the service sector,

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the demand for Banking services like retail banking, mortgage, and investment
services are expected to be very strong. There may also be an encouraging
environment for mergers and Acquisitions (M & A), takeovers and asset sales.

1.4. RECRUITMENT AND SELECTION PROCESS OF BANK:-

1. Central Bank
2. Commercial Banks
3. Co-operative Banks

1. Central Bank
The Reserve Bank of India is the central bank of our country. Each country has
a central bank that regulates all the other banks in that particular country.
The main function of the central bank is to act as the Government’s Bank and
guide and regulate the other banking institutions in the country. Given below are the
functions of the central bank of a country:
 Guiding other banks
 Issuing currency
 Implementing the monetary policies
 Supervisor of the financial system
In other words, the central bank of the country may also be known as the
banker’s bank as it provides assistance to the other banks of the country and manages
the financial system of the country, under the supervision of the Government.

Seniority levels for RBI officers are divided six into groups (A to F):

 Groups A and B are the most junior levels. Officers for these groups are recruited
directly almost every year. College graduates and postgraduates are recruited for
group B through examinations conducted by the Reserve Bank of India Services
Board.
 Groups C and D are levels requiring more experience. Direct recruitment for these
levels occurs almost every year.

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 Group F is the most senior level and includes officers such as Deputy-Governor
and Governor. These officers are collectively are called Class-I employees.
 RBI also has a large number of class-III and class-IV employees, which work as
service staff and other subordinate levels. Strangely, there is no class-II level in
RBI.

Recruitment and Selection Process of Reserve Bank of India (RBI)

The various positions for which we need people like you, are regularly
advertised in leading newspapers and Employment News/Rojgar Samachar. For all the
Class I posts, that is officers, in the RBI, the Reserve Bank of India Services Board
(RBISB) conducts examinations /interviews. You'll need to apply to the General
Manager, RBISB in the format published in the advertisements along with all your
relevant documents.

The Board follows two different procedures for selection.

1. For most of the posts like Staff Officers Gr.'B' and Research Officers in Gr.'B',
you are required to appear for
a. Objective Test
b. Written Test and
c. Interview
2. Librarian, etc., you are required to appear only for an interview, without going
through the written tests.
If you have to go through the objective and the written tests and also the
interview, the RBISB will give you a detailed schedule for all the three tests. Once you
qualify in the objective test, you take the written test and once you succeed in that, you
get to appear for an interview. The final selection list is formed based on your
performance in both, the objective and written tests as well as the interview.
If you get selected, you get an Offer of Appointment from the Rib's Central
Recruitment section. If you agree to the terms in the letter, a few formalities need to be
completed which include a medical test, Police Verification Report, Referee Report
and Employer's Report.

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Once these formalities are completed, you get the Appointment Letter with
which you report to the Principal, Reserve Bank Staff College (RBSC), Chennai for
your Induction Training.

Process of recruitment and selection of Officers in Grade-‘A’

There is no direct recruitment examination for RBI Grade A. You can get to
Grade A through internal promotional examination only from the post of RBI Assistant.
Grade B is the highest recruitment examination that is conducted by RBI.
Grade A officer is at the disposal of his senior officers. The places where
Grade B officers are not present, Grade A officers do the same work as that of A Grade
B officer.
RBI grade A officer is the scale 1 post officer that are Assistant Managers.
RBI jobs are the most sought jobs for the candidates who are preparing for banking
exams. There is no direct examination for Grade A in RBI, candidates have pass
internal promotional examination to get on the Grade . However, the highest level
exam conducted by RBI is for grade B that is for manager post. Candidates have to
join as assistant and get promoted for Grade A.
Generally in RBI Assistants ,who have completed 3 years of service in the
bank are eligible to promote as Assistant Manager, subject to qualify the departmental
examination.
In some cases RBI also recruits Assistant Manager On Direct recruitment
Basis( They are called as Assistant Manager DR) basically they all are specialised
people and not as Generalist.

Process of recruitment and selection of Officers in Grade-‘B’

RBI Grade B Job Profile

After finishing the probationary period officers will be then posted in their
respective departments such as DR, DEPR, and DSIM. The typical working hours of
an officer will be 9 to 5 with 5 working days a week. The usual job profile of an RBI
Grade B officer is as follows:

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(a) Handing the Currency Issue and its Circulation: This includes the
management of currency and ensuring its proper circulation and exchange.

(b) Ensuring the Nation’s Financial Stability: This includes maintaining the cash
inflow and maintenance of the order of the bank by ensuring an adequate
supply of liquidity of the productive sector of the country.

(c) Handling Government and Central Bank Accounts: This includes activities
like managing various state and central government accounts by doing the
merchant banking functions for them.

Post-retirement, RBI Grade B officers may also get to work with some of the reputed
organizations like the World Bank, IMF, and so on.

RBI Grade B Recruitment

RBI Grade B exam is conducted by the Reserve Bank of India and it is a

National Level Exam. It is a Bank exam held for recruitment for the positions of Grade
B Officers across the country in its various branches. This exam is a very popular one
as there are many candidates who seek or aspire to work in the finance sector. The RBI
Grade B is conducted for the recruitment of the Grade B Officers in Combined
Seniority Group (CSG) streams. The RBI Grade B has three significant departments
and they are Officers in Grade B (General), Officers in Grade B (Department of
Economic and Policy Research), and Officers in Grade B (Department of Statistics and
Information Management). The candidates who are able to clear all three phases of the
RBI Grade B exams are inducted into either of the three departments.

There are various posts available for a Grade B officer which are as follows:

 Governor
 Deputy Governor
 Executive Director
 Principal Chief General Manager
 Chief General Manager
 Deputy General Manager
 Assistant General Manager

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 Managers
 Assistant General Managers
 Assistants

RBI Grade B Selection Process

 Step 1: The first step is the preliminary Exam. All candidates who successfully
submitted their application and satisfying eligibility criteria can attend the
exam.
 Step 2: The second step is the Mains Exam. Candidates who can cross the
preliminary exam cutoff marks will be qualified for the Main exam.
 Step 3: The third step is the interview. Candidates who will score minimum cut
off marks in both the exam will be qualified for Interview process.

 Candidates obtaining equal or more than cut off prescribed for the Main
exam will be shortlisted for the interview based on the total score secured
in Phase-II Exam.
 Board will finalize the final cut-off score and notify the test-takers.
 After the results of the main exam have been declared, a list of
candidates selected for the interview will be published on the official
website and interview call letters will also be sent to the candidate’s
registered E-mail and mobile number via SMS.
 Final selection will be done on the basis of a merit list prepared by the
Board by adding Mains exam score and interview marks secured by the
candidates.

2. Commercial Banks

 Organized under the Banking Companies Act, 1956

 They operate on a commercial basis and its main objective is profit.
 They have a unified structure and are owned by the government, state, or any
private entity.
 They tend to all sectors ranging from rural to urban

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 These banks do not charge concessional interest rates unless instructed by the RBI

 Public deposits are the main source of funds for these banks.

The commercial banks can be further divided into three categories:

Public sector Banks-- A bank where the majority stakes are owned by the
Government or the central bank of the country.
Private sector Banks-- A bank where the majority stakes are owned by a private
organization or an individual or a group of people
Foreign Banks-- The banks with their headquarters in foreign countries and branches
in our country, fall under this type of bank

Recruitment Process of Commercial Bank

The human resources staff at Commercial Bank first makes sure recruitment
plans are set based on business goals and analyzing of history. Then looks at the job a
requirement and list the skills, knowledge, experience and ability needed. Mainly the
recruitment activities of the bank are carried out at least four times per year. Shown
below are some figures, which have been taken from a past year.
 Five employees retired under normal retirements.
 Fifteen resigned under voluntary retirement.
 Four resigned
 Four dismissed.
 Three expired during the period under view.
Commercial Bank has also come up with new recruitment opportunities due
to the expansion of the bank. Therefore, to fill these vacancies Commercial Bank
follows the internal and external recruitment methods. Whereas, it should be noted that
when there is a vacancy the bank first tries to fill the space with an existing employee
by following the internal recruitment method. If the requirements cannot be met by the
internal method then they move into the external recruitment. In addition, it is clear
that the bank follows both ways to select the best candidate.

The internal procedure

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This method is used to fill a vacancy of Commercial Bank, using an existing

employee with the right requirements and qualifications. Therefore, if there is any
vacancy the management of the bank will advertise it in the internal newsletter, which

is handed over to all the employees making more space for opportunities. Within one
week’s time if the bank finds a suitable person from the company itself to fill the
vacant position, most probably they are given the job.
Commercial Bank faces many advantages due to the internal recruitment
method. They are as show below,
 Cost effectiveness – the bank should invest money upon recruitment, selection
and training & development when picking an employee externally. This can
cut off by the internal method of recruitment.
 Gives more motivation to all the employees and leads to promotions.
 Increase commitment to the company by the employees.

The external procedure

Commercial Bank depends on external labor market, when they do not find
existing employees who has the required knowledge, experience or skills for the
vacant opportunity. The human resource department of the bank will be informed by
the management of the respective departments, which has job vacancies and will be
provided with the description of the job and other information.
 The job description contains the following information,
 Job title
 Title of immediate supervisors’ job
 Purpose of the job
 Number of subordinates
 Responsibilities of the job
 Limits of authority
 Vocation of the job
Advertising is a crucial step when it comes to recruiting and attracting the best
candidates. By identifying the social and intellectual skills, the Human Resource
department will prepare the advertisements. When it comes to advertising vacancies

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Commercial Bank mainly uses the newspaper advertising method and their website.
Commercial Bank uses the following principles for effective advertising,
 Explains the details about the company
 Advertises under the company name
 Provides sufficient details about the vacant position

 Points out personal requirements

 States the main terms and conditions of employment
 States whom the application should be directed
After the applications are been handed out, the human resource department
will divide the applications as required into relevant categories. Thereafter, the divided
application forms will be given to the relevant departments with the vacancies.
The recruitment procedure takes quite a long time since the human resource
department has entangle in a load of work and should put a lot of effort.

Evaluation of external & internal methods of recruitment

Both the organizations that have been discussed above uses both internal and
external recruitment methods. Yet, it should be noticed that for an organization it is
more cost effective to use the internal method. It is clear that a company has to put
aside a certain amount when it comes to the processes of recruiting selecting and
training & development. Therefore, if the company can find an existing employee with
the right requirements to fill up a vacancy, the cost will be less as for the above
processes would not have to be practiced.
However, the internal method can also hold a disadvantage. By recruiting, a
candidate externally may bring more knowledge, skills and diversity to the
organization. In certain instances, the internal method would not be eligible to do so.
Therefore, by external recruitment the organization will be able to find the best
candidates for the vacant job than from the internal method. Hereby, it is clear that
both internal and external methods are valuable for an organization in the recruitment
process.

Selection Process of Commercial Bank

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Commercial Banks management explores both internal and external sources

for replacement needs. Internal recruitment is where the bank is supplied with the work
force within the company itself. This can be an action of either transferring or
promotion. There are many uniform ways Commercial Bank uses their internal
recruitment method. Mostly the bank uses the inventories, which is also known as a
computerized database that is contained with the basic information of all the
employees. The inventory carries the information about each employee’s skills,
knowledge, performance and other relevant characteristics.
Commercial Banks selection process is an attempt to find the qualified and
best candidates for vacant jobs in the organization. Therefore, once the recruitment
process is taken place the management of the bank finds the best fitting people to fill
the available spaces through the selection process. For this, several different methods
such as selection tests, preliminary screenings and comprehensive interviews are held
at Commercial Bank.

Standard Chartered Bank

Recruitment process of Standard Chartered Bank
The bank’s Management Development Scheme takes place in Colombo,
where they recruit management trainees. Never the less, Standard Chartered Bank has
provided the opportunity for those candidates who are interested in this scheme to
apply to their local cities. Per year around 40 management associates are been
recruited. The aim of the management is to recruit graduates and post graduates with
different backgrounds and experiences yet, the best and the brightest talent in market.
Whom do they recruit?
 Young and talented graduates or postgraduates, who are willing to start
their career in the financial service industry
 Career-oriented person
 Consistent academic performer throughout his/her education
 Innovative, ambitious, energetic and business oriented person

Recruitment criteria
Standard Chartered Bank recruits the most talented individuals from the
external market to supplement their internal pipeline of talent. Their Human Resources

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department provides guidance on the use of psychometric tests and has robust
recruitment criteria to ensure that all candidates are treated fairly, equally and with
respect. It has a global Graduate Recruitment Program; where in the region of 150
graduates are recruited each year on a management trainee program across all
businesses, functions and countries.

Analysis for Standard Chartered Banks recruitment

Human Resource Recruitment is defined as any practice or activity carried on
by the organization with the primary purpose of identifying and attracting potential
employees. The goal of an organizational recruitment program is to ensure that the
organization has a number of reasonably qualified applicants (who would find the job
acceptable) to choose from when a vacancy occurs.

Selection Process of Standard Chartered Bank

Employee selections at Standard Chartered Bank are based on knowledge,
skills and talent. The bank is committed to provide the equal opportunities to all
employees regardless of gender, race, age, disability, nationality, ethnic origin or
material status. Never the less, Standard Chartered Bank also identifies what unique
strengths each individual brings, to the roles they carry out and the development of
these strengths.
Standard Chartered Bank mostly uses face-to-face interviews as their
selection method. Therefore, when suitable applicants are been chosen through the
recruitment process the bank set appointments for interviews with them. Afterwards,
upon arrival, have each interviewee fill out a job application form and give them a
copy of the position’s written job description. After interviews are completed, human
resource manager of Standard Chartered Bank selects two or three candidates that fits
for the vacant job and have them come in for a follow-up interview. This is where the
management discuses about salary, benefits etc. Thereafter, the final employee
selection takes place based upon these second-level interviews and makes an offer to
the Human Resource Manager’s first choice.

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Analysis for Standard Charted Banks selection

Any organization that intends to compete through people must take the utmost
care with how it chooses organizational members. Personnel selection is the process by
which companies decide who will or will not be allowed into their organization.
Several generic standards should be met in any selection process, which are reliability,
validity, utility, and legality.Standard Chartered selects employees based on
knowledge, skills and talent. They are committed to providing equality of opportunity
to all employees, regardless of gender, race, nationality, age, disability, ethnic origin,
or marital status.

3. Co-operative banks
These banks are organised under the state government’s act. They give short
term loans to the agriculture sector and other allied activities.
The main goal of Cooperative Banks is to promote social welfare by
providing concessional loans
They are organised in the 3 tier structure

 Tier 1 (State Level) – State Cooperative Banks (regulated by RBI, State

Govt, NABARD)
 Funded by RBI, government, NABARD. Money is then distributed to the
public
 Concessional CRR, SLR applies to these banks. (CRR- 3%, SLR- 25%)
 Owned by the state government and top management is elected by
members
 Tier 2 (District Level) – Central/District Cooperative Banks
 Tier 3 (Village Level) – Primary Agriculture Cooperative Banks

Recruitment and Selection in District Central Co-operative Banks

Once the human resource planning is complete, the next step is to acquire
personnel necessary to ensure the continued operation of the organization. In the
absence of scientific recruitment and selection procedure, the management of any
organization may fall to select the right man with the right skills for development,

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doing the right job, in the right environment. Moreover, the employees must have faith
in the system of recruitment and selection. Recruitment provides the opportunity to
cater to changing needs of people by either repositioning current employees or
injecting fresh blood into the organizational veins.
There are three modes of recruitment in the cooperative banks, namely
1. By direct recruitment
2. By taking persons on deputation from Government or from sister cooperative
institutions
3. By promotion
The main sources of recruitment is newspaper advertisement but in
cooperative organization, information in respect of vacant posts is conveyed through
the system of circular to the State Employment Exchange which receives a restricted
distribution. Thus in the absence of a wide publicity of vacant posts , the service in
cooperative banks is easily available to the persons known to the top and middle
executives. Internal promotion can be a good practice if merit is not sacrificed.
Similarly , recruiting like-minded people can become a bad practice if it leads to
organizational behaviour where diversity is resented. Cooperative banks typically
apply precise and rigorous guidelines to admit members but do not show the same
commitment when it comes to recruiting people, despite the fact that hiring decision
involves enormous costs when one takes into account the recruitment costs, training
costs, salary and benefit over the tenure of employees and replacement cost.
Deputation of Government officers to hold the key posts in cooperative banks
is a widely prevalent practice. This practice is consequence upon the dependence of
cooperative banks on the government for financial and managerial assistance. The
practice of deputation affects the banks employees in certain respect, particularly, the
promotion prospects at the higher echelons. Further the cooperative banks, unlike
commercial banks, have local identity and the image and have strong banks with local
community. Cooperative banks prefer to recruit local candidate particularly for
managerial cadre post due to the fact that they are well adjusted to the local
environment.

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Recruitment of Maharashtra State Co-operative Bank

Eligibility Criteria
Detailed eligibility criteria including educational qualifications and age limit for
applying in various posts under Maharashtra State Cooperative Bank Recruitment can
be found below:

Education Qualification

 Officer Grade 2 (Trainee): Post Graduate in any discipline. CAIIB will be

preferred. Min 10 yr experience in Banking

 Junior Officer (Trainee): Graduation. JAIIB Preferred. Min 5 year

experience

 Clerk (Trainee): Graduation with 60% marks. No Experience required

(Freshers)

 Information Technology: B.E/ B.Tech in CS/IT or equivalent. Certificate in

CISM/ CISA/ CISSP/ CRISC. Experience required as per post.

Age Limit

 Grade-II Trainee Joint Manager / Trainee Officer: 35-40 years

 Trainee Junior Officer: 30 – 35 years

 Trainee Clerk: 21 – 28 years

Selection Procedure

Candidates will be selected for Maharashtra State Cooperative Bank Trainee Officer &
Clerk Post Based Online Computer Based Test ( Written Examination) and Interview.

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CHAPTER 2
RESEARCH METHODOLOGY

Research is not only concerned to the revision of the facts and building up to
date knowledge but discover new facts involved through the process of dynamic
changes in the society. Methodology is defined as a system of methods and rule to
facilitate the collection and analysis of data. It provides the starting point for
choosing and approach made of theories, data, concept and definition of the topic
(Hart, 1998).

Research design
Research design is a framework or blueprint for conducting the marketing
research projects. It explains the procedure necessary for obtaining the information
needed to structure or solve research problems. The present research design was
exploratory in the initial stages then after gaining the insights into the problem it was
verified and quantified by conclusive research. The form of conclusive research
design adopted for the study.
The objective of exploratory research is to explore or search through a
problem or situation to provide insights and understanding. Descriptive studies
involve collection of data through structured design and survey method is followed in
order to get the needed information. It is typically based on representative sample
which was used to description and define the behaviour of the respondents.

Research Methodology
The researcher adopted convenient sampling technique for the selection of
study area. A sample of 80 respondents (youth) was taken. Well-structured
questionnaire was used for collecting primary data by survey method.
The study is designed to gather descriptive information for conducting study in more
practical manner. For testing hypothesis and interpreting relationship analytical study
is used, therefore the study make use of quantitative research approach.

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Objective of the Study

The main objective of the present research is to study, know and analyse
human resource planning policies, practices and procedures in the select industry on
the basis of the respondents’ perceptions, opinions and experiences. This main
objective can be delineated into the following sub-objectives.
1. To know and analyze the recruitment and selection process, procedures
and practices in the selected software company.
2. To study the understanding process of recruitment.
3. To study the effectiveness of interview technique in recruitment and
selection process.
4. To know the recent happening and trends in field of recruitment.
5. To get more information from the previous studies.
6. To know the purpose & importance of Recruitment & Selection process
for bank.

Scope of the Study

1. This study provides opportunity for research and survey on HR
recruitment and selection in banking industry.
2. An effective approach to recruitment can help a company successfully
compete for limited human resources.
3. Recruitment lends itself as a potential source of competitive advantage to
a firm.
4. 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.

Limitations of the Study

The study has been conducted with immense responsibility while keeping in
the mind the success of first step is deemed necessary to have second one. Proper
planning was done to analyse every aspects of the study. All precautions have been
taken to evolve a systematic study to reduce the element of bias to its lowest extent.
The data was collected through personal interaction and every effort was made to

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observe consistency throughout. The statement of the scale was well explained and
every response has been recorded properly (wherever necessary).
1. Although the efforts have been made to make this study a comprehensive
one but due to various reasons like time, money, small sample size,
limited sampling unit there could be some limitations in the study.
2. The main limitation can be the small sample size as compare to the
universe, biasness or resistance in the respondent response due to some
personal reasons, lack of published/unpublished direct literature on the
study, time constraints and frequent development/changes in the field.

Collection of Data
Data Collection is the process of gathering and measuring information on
variables internet, in an established systematic fashion that enables one to answer
stated research questions, test hypotheses, and evaluate outcomes. The data
collection component of research is common to all fields of study including
physical and social sciences, humanities, business etc. While methods vary by
discipline, the emphasis on ensuring accurate and honest collection remains the
same.

1 . Interviewing
people within your
organication
Primary Data
2. Observing a
moderated discussion
amougst people you
choose to collect data
Data
1. Google Analytics
report on your
website's traffic
Secondary Data
2. Information you
are collected from
census and electaral
statistics

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Primary Data
Primary data collection forms the first hand information got from respondent
itself and the information is collected through Question series, interview schedules
and observations. Primary data are sought for their proximity to the truth and control
over error. This data have been used to study and select the best source of
recruitment. The questionnaires have been prepared to study it and the sample size
was 100.

Secondary Data
These are the data which are collected from some secondary source i.e. the
source of reservation storage where the data is collected by one person and used by
other agency. These are collected as primary data and used by other as secondary
data.
Relevant and reliable data was collected from various secondary data from
reports, journals, research papers, etc. Updated information was also gathered from
authentic websites.

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CHAPTER 3
LITERATURE REVIEW

3.1. Recruitment :-
Recruitment is nothing but the process of searching the prospective candidates
for employment and then stimulating them to apply for jobs in the organization (Edwin
B Flippo, 1989). It is the activity that links the employees and the job seekers (David A.
DeCenzo & Stephen P. Robbins, 2005). It is also defined as the process of finding and
attracting capable applicants for employment. This process begins when recruits are
sought and ends when their applications submitted. According to Costello (2006),
recruitment is described as the set of activities and processes used to legally obtain a
sufficient number of qualified people at the right place and time so that the people and
the organization can select each other in their own best short and long term interests.
Jovanovic (2004) said recruitment is a process of attracting a pool of high quality
applicants so as to select the best among them. For this reason, top performing
companies devoted considerable resources and energy to creating high quality
selection systems. The focus of recruitment and selection according to Montgomery
(1996) is on matching the capabilities and inclinations of prospective candidates
against the demands and rewards inherent in a given job.

Overview of recruitment procedure

When an organization makes the decision to fill an existing vacancy through
recruitment, the first stage in the process involves conducting a comprehensive job
analysis. Once a job analysis has been conducted, the organization has a clear
indication of the particular requirements of the job, where that job fits into the overall
organization structure and can then begin the process of recruitment to attract suitable
candidates for the particular vacancy. Generally companies maintain the following
recruiting process:
Draw up a job analysis detailing the specific nature of the responsibilities,
tasks, duties, accountability, competencies and training required for the post. This will

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provide the foundation for the recruitment process.Prepare a job evaluation which is an
assessment of the value of the job in relation to other jobs, so that the rewards and
remuneration can reflect its value and attract appropriate candidates.

Develop a job description, which is a broad description of the jobs, its title,
duties, responsibilities and requirement, purpose, authority and performance targets.
Prepare a personal profile (job / person specification), which defines the minimum
acceptable human qualities of the individual needed e.g. educational
qualifications,experience, personality, skills for the proper performance of a job. These
can be classified in a number of ways, such as essential and desirable and can be used
to create a short list of the applicants and as a checklist by the interviewers.
Decide on the best way of obtaining the right person. This may be by external
recruitment or internal by redeploying an existing employee or by outsourcing to
another company. Finally, communicating the information about the organization, the
job and the terms and conditions of service among the prospective candidates and
deciding the route for attracting qualified applicants by selecting the appropriate media
for advertising the vacancy and encouraging them to apply for jobs in the organization.

Goals of recruitment

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1. To create a talent pool of potential candidates for the benefits of the

organization.
2. To increases the pool of job seeking candidates at minimum cost.
3. To increase the success rate of selection process by decreasing the number
of visits qualified or over qualified job applicants.
4. To identify and prepare potential job applicants who will be the
appropriate candidature for the job.
5. Finally to increase organizational and individual effectiveness of various
recruiting techniques and for all the types of job applicants.

Sources of recruitment
Recruitment takes place within a labor market. This includes a mass of
available people who have the skills to fill open positions. Sources for recruitment
depend on the availability of the right kinds of people in the local labor market as well
as on the nature of the positions to be filled. An organization’s ability to recruit
employees often hinges as much on the organization’s reputation and the attractiveness
of its location as on the attractiveness of the specific job offer.
In general, the sources of employment can be classified into the following two types:
1. Internal sources
2. External sources

Internal sources of recruitment

Filling vacancies from inside the organization is known as the internal sources
of recruitment. Here the important methods are explained below:
 Organizational Database
The increased use of human resource information systems allows HR staff
members to maintain background and KSA information on existing employees.
Analysis of present employees is greatly facilitated by HR Audits summarize
employee’s skills and abilities. Some employers use personnel replacement chart to
keep track of inside candidates for their most important positions. These show the
present performance and promotability for each potential replacement for important
positions.
 Promotion

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The most important source of filling vacancies from within is through

promotions. Promotion is a change within the organization to a higher position that has
greater responsibilities and requires more advanced skills. It usually involves higher
status and on increases in pay.
 Transfer
Transfer is concerned with the shifting of an employee from one job to
another having similar status and responsibility. As Gary Dessler mentioned, transfer
is a move from one job to another usually with no change in salary or grade.
 Job Posting
Job posting is an integral method of recruitment in which notices of available
jobs are posted in central locations throughout the organization and employees are
being given a specified length of time to apply for the available jobs.
Advantages and disadvantages of internal recruitment

Advantages Disadvantages

 Employees see that competence is  Employee who apply for jobs and
rewarded and morale and don’t get them may become
performance may thus be enhanced. discontented, informing unsuccessful
 Having already been with your applicants as to why they were
firm for some time, inside candidates rejected and what remedial actions
may be more committed to company they might take to be more successful
goals and less likely to leave. in the future is thus essential.
 Promotion from within can boost  Infighting for promotions can
employee commitment and provide negatively affect morale.
managers a longer-term perspective  Inbreeding can stifle new ideas
when making business decisions. and innovation.
 It may also be safer to promote  It reduces the scope of fresh
employees from within, since you’re talents.
likely to have a more accurate
assessment of the person’s skills than
you would otherwise.

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 It may increase favoritism and
 Inside candidates may also require nepotism.
less orientation and training than
outsiders.
External sources of recruitment
Hiring from outside the organization is known as external sources of
recruitment. Many a time suitable candidates are not available from the internal
sources, thus every organization has to tap external sources for various job positions.
Many different external sources are available for recruitment. In the tight labor
markets multiple sources and methods may be used to attract candidates for the variety
of jobs available in the organization. Some of the more prominent methods are
highlighted below:
 Employee referrals / Recommendations
The employee referral method involves informing present employees of job
vacancies and asking them to recommend or refer applications to the organization.
Some organization offer cash rewards to employee as incentives for referring
qualified applicants.
Existing employees are the most appropriate means to let people know that
the company really does want people having specific skills/experience to apply. But
sometimes employee referrals can lead to nepotism and breaches of policy and
procedural guidelines and staff dissatisfaction with the recruitment and selection
process.
 Job advertising
One of the more widely used methods of recruitment is job advertising. Good
job advertisements must first attract attention (for appropriate job-seeker); attract
relevant interest (by establishing relevance in the minds of the ideal candidates); create
desire (to pursue what looks like a great opportunity), and finally provide a clear
instruction for the next action or response.
 Unsolicited applicants
Unsolicited applicants, whether they reach the employer by letter, e-mail,
telephone, or in person, constitute a source of prospective applicants.
 Campus recruiting
Campus recruiting activities are usually coordinated by the University or
College placement center. Generally, organizations send one or more recruiters to the

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campus. They generally review an applicant’s resume before conducting initial

interviews. The most promising recruits are then invited to visit the office or plant
before a final employment decision made.
 Employment agencies
Employment agencies are a good source of professional, technical and
managerial employees and all kinds of experienced employee.
 Employee leasing companies
Employee leasing companies provide permanent staff at customer companies,
issue the worker’s paychecks, take care of personnel matters and provide various
employee benefits.
 Special recruitment events
Special recruitment events such as job fair are another external recruiting
method. Job fairs are events in which many different employers gather at one occasion
to interview applicants for jobs.

Advantages and disadvantages of external recruitment

Advantages Disadvantage

1.The pool of talent is much larger 1.Attracting, contracting and evaluating

2.New insights and perspectives can be potential employee is more difficult.
brought to the organization 2.The new employee may require a longer
3.The new hire has no group of political adjustment or orientation time.
supporters in the organization. 3.Morale problems can develop among
those employees within the organization
who feel qualified to do the job.

Internet recruiting
Internet / web based recruitment have two main features; firstly job boards
allow member companies to post job vacancies where as on other hand, CV
(curriculum vitae) data base allows the candidates to upload their resumes, later to be
included in searches by member companies. The advantages and disadvantages are as
follows:

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Advantages Disadvantages
1.Recruiting cost savings 1.More unqualified applicants
2.Recruiting time savings 2.Many applicants are not seriously
3.Expanded pool of applicant seeking employment
3.Access limited to some applicants

3.2. Selection:-
Selection can be conceptualized in terms of either choosing the fit candidates,
or rejecting the unfit candidates, or a combination of both. So, selection process
assumes rightly that there is more number of candidates than the number of candidates
actually selected, where the candidates are made available through recruitment process.
According to Heinz Weihrich & Harold Koontz (2002), selection is the process of
choosing the most suitable person from within and outside of an organization for the
current position or for the future positions. In this process, relevant information about
applicant is collected through a series of steps so as to evaluate their suitability for the
job to be filled. On other hand, selection is the process of assessing the candidates by
various means and making a choice followed by an offer of employment (Graham,
1998).
Therefore, in simple terms, selection is a process in employment function
which starts immediately upon receipt of resumes and application letters, the major
concern being reviewing resumes for basic qualifications. A job seeker who does not
meet the required qualifications is not an applicant and should not be considered. An
applicant who is hired must be meet the required qualifications listed in the job
specification. In this regard, selection is a process of matching the qualifications of
applicants with the job requirements (Mathis & Jackson). Selection is much more than
just choosing the best candidate. It is an attempt to strike a happy balance between
what the applicant can and wants to do and what the organization requires.

Difference between recruitment and selection

Both recruitment and selection are the two phases of the employment process.
The differences between the two are:

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Recruitment Selection
1.Recruitment involves identifying the 1.Selection is a process of weeding out
sources of human resources and unsuitable candidates and finally
stimulating them to apply for jobs in an choosing the most suitable persons out
Organization of all the applicants.
2.The basic purpose of recruitment is to 2.The basic purpose of selection process
attract maximum number of candidates is to choose the best candidate out of
so that more options are available. the available candidates to fill the
3.Recruitment is a positive as it aims at various positions in the organization.
increasing the number of applications 3.Selection is a negative process as it
for wider choices. involves rejection of the unsuitable
4.Recruitment is concerned with tapping candidates.
the sources of human resources. 4.Selection is concerned with selecting
5.The outcome for recruitment is the most suitable candidate through
application pool which becomes input various interviews and tests.
for selection process. 5.The outcome for selection process is in
the form of finalizing candidates who
will be offered for jobs.

Steps in the selection procedure

Selection is subject to a number of legal concerns, especially the equal
employment opportunity (EEO) regulations and laws. That’s why selection activities
follow a standard pattern, beginning with an initial screening interview and concluding
with the final employment decision. Selection process consists of series of steps, at
each stage, facts may come light which may lead to the rejection of the applicant. It is
a series of successive hurdles of barriers which an applicant must cross. These hurdles
or screens are designed to eliminate an unqualified candidate at any point in the
selection process. But the number of steps in selection procedure and the sequence or
steps varies from organization to organization. Every organization,therefore designs a
selection procedure which suits its requirements. However, the principal steps involved
in selection procedure are as follows:

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1. Preliminary Interview
The preliminary interview is an excellent opportunity for HRD to describe the
job in enough detail so the candidates can consider whether they are really serious
about applying. Sharing job description information with the individual frequently
encourages the unqualified or marginally qualified to voluntarily withdraw from
candidacy, with a minimum of cost to the applicant or the organization.
2. Completed Application
Most companies ask the applicant to complete a application from that
provides a place for him or her to record identifying data such as name, address, job
for which he or she applying and information covering education, work experience, etc.
Factors that might lead to a negative decision at this point include inadequate or
inappropriate experience, or appropriate or inappropriate education. There might also
be other “red flags” identified, such as gaps in the applicant’s job history, many brief
jobs or numerous courses and seminars instead of appropriate education.

3. Employment Test

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The primary objective of testing is to obtain data about the applicants that help
to predict their probable success in the given responsibility. If a review of an
application form reveals no information that would disqualify the candidate, he may
then be given one or more tests. The most commonly tests can be classified as follows:
 Intelligence tests- are designed to measure mental capacity and to test
memory, speed of thought and ability to see relationships in complex problem
situations.
 Aptitude tests- are constructed to discover interest, existing skills and
potential for acquiring skills.
 Personality tests- Tests that use projective techniques and trait inventories to
measure basic aspects of an applicant’s personality, such as introversion,
stability and motivation.
Interest tests- These tests are an inventory of a candidate’s like and dislikes in
relation to work. They are designed to discover a person’s area of interest and to identify the
kindofworkthat willsatisfy him.
 Graphology tests- Use of a trained analyst to examine a person’s handwriting
to assess the personality, emotional problems and honesty.
 Dexterity tests- The person who is “clever with his head” is not necessarily
“clever with his hands”. In fact, there is little relationship between intelligence
and the ability to use one’s hands and figures skillfully. There are two types of
dexterity -manual and finger that have been found to be each other. Some jobs
require good finger dexterity.
4. Comprehensive Interview
An interview is a procedure designed to predict future job performance on the
basis of applicants’ oral responses to oral inquiries. The individual who “passes” the
tests is then ready for a comprehensive interview, is ordinarily for the purpose of
verifying information provided on the application blank and for obtained additional
information that will be useful in assessing the candidate’s qualifications.
5. Background investigation and reference check
Area of investigations and checks:
A.Reference checks
B.Background employment checks
C.Criminal records

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D.Driving records
The purposes of the reference check are to obtain information about past
behavior of applicants and to verify the accuracy of information given on the
application blank. Reasons for background investigation are to verify factual
information provided by applicants and to uncover damaging information.
6. Conditional job offer
If a job applicant has passed each step of the selection process so far, it is
typically customary for a conditional job offer to be made. Conditional job offer
usually are made by an HRM representative. In essence, what the conditional job offer
implies is that if everything checks out okay passing a certain medical/physical test-the
conditional nature of the job offer will be removed and the offer will be permanent.
7. Physical examination
The physical examination is normally required only for the individual who is
offered the job, and the job offer is often contingent on the individual passing the
physical examination.
8. Final selection decision
The responsibility for making the final selection decision is assigned to
different levels of management in different organizations.
In many organizations, the HR Department handles the completion of
application forms, conducts preliminary interviews, testing and reference checking and
arranges for physical examinations. The comprehensive interview and final selection
decision are usually left to the manager of the department with the job opening. Such a
system relief the manager of the time consuming responsibilities of screening out
unqualified and uninterested applicant.
9. Placement & induction
The applicant who passes all the foregoing screening is assigned to a vacant
position in a department where the Manager or Supervisor has interviewed and
accepted him. At this point induction program will begin.

Importance of selection process

Selection means to choose the person from among the prospective candidates
to fill in the vacant posts in the organization. The success of the organization depends
upon the quality of human resources selected for the job. Thus selection of personnel

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is the most important function of the Human Resource Management. The importance
of selection may be judged from the following facts:

 Procurement of qualified and skilled workers

Scientific selection facilitates the procurement of well qualified and skilled
workers in the organization. It is in the interest of the organization in order to maintain
the supremacy over the other competitive firms. Selection of skilled personnel reduces
the labor cost and increases the production. Selection of skilled personnel also
facilitates the expansion in the size of the business.
 Provides better performance
Employees with right skills will do a better job for any company and for the
owner. Employees without these requisite skills would not perform effectively and the
company performance will suffer to a great extent. So there is a time to screen out
undesirables and to choose the better and perfect candidate that can effectively
contribute to company success.
 Reduces cost of training and development
Proper selection of candidates reduces the cost of training because qualified
personnel have better grasping power. They can understand the technique of the work
better and in no time. Further, the organization can develop different training
programmers for different persons on the basis of their individual differences, thus
reducing the lime and cost of training considerably.
 Reduces legal obligations
It is important because of the two legal implications of incompetent hiring.
Firstly equal employment law requires nondiscriminatory selection procedures for
selected groups.
Secondly, courts will find the employer liable when employees with criminal
records or other problems use access to customers’ homes to commit crimes. Lawyers
call hiring workers with such backgrounds, without proper safeguards, negligent hiring.
So the negligent hiring highlights the need to think through what the job human
requirements are. So in order to avoid the concept of negligent hiring, it is necessary to
make a systematic effort in order to gain relevant information about the applicant and
verify all the documentation.
 Reduces personnel problems
Proper selection of personnel reduces personnel problems in the organization.
Many problems like labor turnover, absenteeism and monotony shall not be

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experienced in their severity in the organization. Labor relations will be better because
workers will be fully satisfied by the work. Skilled workers help the management to
expand the business and to earn more profits and management in turn compensate the
workers with high wages, benefits etc.
Finally it can be said that, recruitment and selection process are important
practices for human resource management and are crucial in affecting organizational
success.

3.3. Factors affecting recruitment and selection process

Recruitment and selection process is affected by many environmental factors.
There are many external and internal factors that affect recruitment and selection.
 External factors
External factors can be grouped into educational, socio-cultural, legal-political
economic conditions. The economic environment- including the competitive situation
determines the external supply of, and demand for human resources. Legal and
political constraints require that firms follow laws and regulations issued by
Government. The following discussion focuses on the Labor market and equal
employment opportunity.
 Labor market
Conditions of the labor market are a major factor in the design of the
recruiting and selecting process. Labor market affects the size and quality of the
applicant pool which in turn affects the choice of selection methods.
 Governments and society
Several laws have been passed that provide for equal employment opportunity
(EEO). Bangladesh Labor Law-2006, prohibit employment practices that discriminate
on the basis of race, color, religion, national origin, sex or age. Thus Equal
employment legislation remains the most significant influence on the design of
selection systems.
 Internal factors
Besides there are also many internal factors, such as organizational goals,
strategies,objectives, tasks, technology, organizational structure, the kinds of people
employed by the organization, the reward system and various kinds of policies affect
recruitment and selection process of an organization.

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Individual differences between job applicants affect recruitment because it is

process of attraction. Recruitment must also ensures that the requirements that the job
outcomes are likely to motivate them to perform effectively.

3.4. Challenges of recruitment and selection process

An organization’s business performance relies heavily on having the right
human resource capability to support the business needs and the recruitment and
selection function is the first step in achieving this. Potential financial and business
risks are associated with performing this key strategic human resource strategy and
these can emerge throughout the process from sourcing potential candidates through to
the negotiation of the employment contract.
Costs to an organization from a financial and business performance
perspective can be quite high if a poor selection is made. For example, poor selection
decisions can result in absenteeism, employee turnover, work related accidents and
higher training costs. According to Kaplan and Norton (2004), a common problem in
recruitment and selection is poor HR planning. Rigorous HR planning translates
business strategies into specific HRM policies and practices. This is particularly so
with recruitment and selection policies and practices. The key goal of HR planning is
to get the right number of people with the right skills, experience and competencies in
the right jobs at the right time at the right cost. Detailed and robust recruitment and
selection policies, such as recruitment and selection procedures, assessing criteria,
talents auditing and processing the information about the labor market are important
in recruiting and deploying appropriate employees at the right time. Moreover,
effective recruitment and selection is possible only if there is a dedicated and
competent HR team (Kaplan and Norton, 2004).
Misleading communications regarding employment contract provisions can
result in the loss of a desired candidate and potential claims for redress through
industrial mechanisms. To minimize the risks organizations need to:
 Effectively conducting job analysis and targeting right potential candidate
ensures a good match between applicants and the jobs.
 Design and implement credible and transparent recruitment and selection
frameworks and processes;
 Ensure compliance with anti discrimination legislation throughout the process;

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 Select assessment methods and tools appropriate for predicting the required
performance outcome for the position;
 Select the most appropriate method/s for sourcing potential candidates;
Ensure that recruitment and selection policies and practices are strategically
integrated with business.
The recruitment and selection function should also have measures in place to
evaluate performance in relation to the time taken to fill vacancies; the costs associated
with conducting the process internally/externally; and quality of candidate selection
and retention.
Dess and Jason (2001), suggest that in business strategy implementation the
involvement of line managers in the entire staffing process (i.e., drafting of job
descriptions and person specifications, setting selection criteria and being on the panel
of recruitment) is vital for ensuring recruitment and selection to meet business needs.
In other words, the line managers are the owner of the recruitment and selection
process along with HR playing a facilitator role.

3.5. Systems approach to recruitment and selection

Effective recruitment and selection processes will place appropriate people
into jobs so that organizations can meet their strategic and operational goals.
Recruitment strategies must align to the organization’s strategic direction to enable
appropriate workforce planning and alignment of resources to successfully move the
business forward. This plan is translated into position and job requirements which are
matched with such individual characteristics as intelligence, knowledge, skills,
attitudes and experience.
To meet organizational requirements, an organization recruits and selects
human resources. This must be done with due consideration for the internal
environment (such as company policy, supply of and demand for human resources, and
organizational climate) and external environment (Laws, regulations, availability of
efficient human resources) After human resource have been selected in positions they
must be introduced with the job. The orientation involves learning about the company,
its operations and its social aspects. This learning resource will help the HR Manager
take a strategic view when they plan a recruitment and selection event.

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The new selected staff then carry out their functions, resulting in their
performance eventually determines organizations performance. Subsequently, the
performance is appraised and on the basis of this evaluation, the staff and
organizational development is initiated. Finally the staff may be promoted or
transferred on the basis of this appraisal.

Opinions
Odiorne (1984) indicated that the quality of new recruits depends upon an
organization's recruitment practice, and that the relative effectiveness of the selection
phase is inherently dependent upon the caliber of candidates attracted.
Rod, D (1995) is of the opinion that many factors combine to make selection
and recruitment practiceand research a lively area and at the forefront now of the
drive towards management excellence. As a bodyof knowledge, it has been
strengthened by having to prove its usefulness during the 1960s and 1970s and now
there is more realization that both excellence in recruitment and selection, along with
training, appraisalsystems, and organizational design/reengineering, together can
contribute to strong organizations in the future.
According to Montgomery (1996) is on matching the capabilities and
inclinations of prospective candidates against the demands and rewards inherent in a
given job .
Dora, S (2003) states that recruitment and selection experiences are part of a
process of preentry organizational socialization, also known as anticipatory
socialization. Graduates are susceptible to such effects as their socialization through
exposure to professional employers begins during training. Employers’ practices are
thought to contribute to the formation of realistic career expectations and the initial
psychological contract between graduates and employers. The present study found
that students in traditional professions reported greater exposure to employers than
students in an emerging profession through work activities, more proactive
engagement in recruitment events, and mo re extensive experience of selection
processes at similar stages of study. Greater activity, in turn, was related to career
expectations,including varying levels of commitment to and interest in the profession
and career clarity.

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Lavigna, R. J, (etal) (2004) states that governments around the globe are
facing unprecedented staffing challenges. At the time when governments need to be
most adept at luring talent to public service,their ability to do so has rarely been so

constrained and complicated by economic, social and organizational pressures. This

article provides an overview of the types of recruitment and selection initiatives
already in place in many nations that can help the world’s governments attract and
retain talent. Relying heavily upon examples from the United States and Western
Europe, but also integrating experiences from a variety of both developed and less
developed countries (LDCs), we describe a series of recruitment and selection“best
practices.”
Jones etal. (2006) suggested that examples of recruitment policies in the
healthcare, business or industrial sector may offer insights into the processes involved
in establishing recruitment policies and defining managerial objectives.
Ume-Amen (2010) has done research on the factors which benefits
organizations in outsourcing their recruitment and selection process. Based on the
literature survey the factors were identified. These factors were cost savings; improve
quality, time pressure, lack of internal staff, increased capacity, manpower availability,
easy replacements, and pool of applicants and competence of applicants. The
questionnaire designed for the study was based on the above factors. The sample size
of the study was 10 organizations.The objective of this study was to determine
different factors of outsourcing recruitment and selection process at workplace in
banking sector. According to the respondents’ opinions, 43% agree that retention ratio
is higher when recruitment is done through outsourcing firms. 29% strongly agree and
29% strongly disagree that recruitment by outsourcing firms has an edge because of
pools of applicants; skills and expertise. 57% of respondents agree that the recruitment
by outsourcing firms has an edge because of quality and competence. 86% of
respondents agree that the recruitment by outsourcing firms has an edge because of
easy replacement. 43% respondents agree that improve quality is a factor of
outsourcing the recruitment and selection process which had been rated high and 14%
respondents agree that lack of internal staff capabilities are a factor of outsourcing the
recruitment and selection process. This factor has been rated the lowest. All of the
above factors, easy replacement was considered the highest most variable for the
outsourcing firms and pools of applicants and skills the least one variable.

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CHAPTER 4
Data Analysis ,Interpretation and Presentation

Data Analysis & Interpretation Data analysis is defined as a process of

cleaning, transforming, and modeling data to discover useful information for business
decision making. The purpose of Data Analysis is to extract useful information from
data and taking the decision based upon the data analysis. Data Analysis Process The
Data Analysis Process is nothing but gathering information by using a proper
application or tool which allows you to explore the data and find a pattern in it. Based
on that information and data, you can make decisions, or you can get ultimate
conclusions. Data Analysis consists of the following phases:
1. Data Requirement Gathering
2. Data Collection
3. Data Cleaning
4. Data Analysis
5. Data Interpretation
6. Data Visualization

Data Interpretation
Data interpretation is the process of reviewing data through some predefined
processes which will help assign some meaning to the data and arrive at a relevant
conclusion. It involves taking the result of data analysis. Data analysis is the process
of ordering, categorizing, manipulating, and summarizing data to obtain answers to
research questions. It is usually the first step taken towards data interpretation.
It is evident that the interpretation of data is very important, and as such
needs to be done properly. Therefore, researchers have identified some data
interpretation methods to aid this process.
Data Interpretation Methods
Data interpretation methods are how analysts help people make sense of
numerical data that has been collected, analyzed and presented. Data, when collected
in raw form, may be difficult for the layman to understand, which is why analysts
need to break down the information gathered so that others can make sense of it.

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For example, when founders are pitching to potential investors, they must
interpret data (e.g. market size, growth rate, etc.) for better understanding. There are 2
main methods in which this can be done, namely; quantitative methods and qualitative
methods.
1) Qualitative Data Interpretation Method
The qualitative data interpretation method is used to analyze qualitative data,
which is also known as categorical data. This method uses texts, rather than numbers
or patterns to describe data.
Qualitative data is usually gathered using a wide variety of person-to-person
techniques, which may be difficult to analyze compared to the quantitative research
method.
Unlike the quantitative data which can be analyzed directly after it has been
collected and sorted, qualitative data needs to first be coded into numbers before it can
be analyzed. This is because texts are usually cumbersome, and will take more time
and result in a lot of errors if analyzed in its original state. Coding done by the analyst
should also be documented so that it can be reused by others and also analyzed.
There are 2 main types of qualitative data, namely; nominal and ordinal data.
These 2 data types are both interpreted using the same method, but ordinal data
interpretation is quite easier than that of nominal data.
In most cases, ordinal data is usually labelled with numbers during the
process of data collection, and coding may not be required. This is different from
nominal data that still needs to be coded for proper interpretation.
2) Quantitative Data Interpretation Method
The quantitative data interpretation method is used to analyze quantitative
data, which is also known as numerical data. This data type contains numbers and is
therefore analyzed with the use of numbers and not texts.
Quantitative data are of 2 main types, namely; discrete and continuous data.
Continuous data is further divided into interval data and ratio data, with all the data
types being numeric.
Due to its natural existence as a number, analysts do not need to employ the
coding technique on quantitative data before it is analyzed. The process of analyzing
quantitative data involves statistical modelling techniques such as standard deviation,
mean and median.

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Some of the statistical methods used in analyzing quantitative data are

highlighted below:
 Mean
The mean is a numerical average for a set of data and is calculated by
dividing the sum of the values by the number of values in a dataset. It is used to get an
estimate of a large population from the dataset obtained from a sample of the
population.
 Standard deviation
This technique is used to measure how well the responses align with or
deviates from the mean. It describes the degree of consistency within the responses;
together with the mean, it provides insight into data sets.
 Frequency distribution
This technique is used to assess the demography of the respondents or the
number of times a particular response appears in research. It is extremely keen on
determining the degree of intersection between data points.

Advantages of Data Interpretation

 It helps to make informed decisions and not just through guessing or
predictions.
 It is cost-efficient
 The insights obtained can be used to set and identify trends in data.

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Interpretation Of Data
The data analysis of my study is based on the sample size which I have
taken. The analysis of the data is done as per the survey finding. The data is
represented graphically in percentage.
The percentage of people opinion were analyzed and expressed in the
form of chart and have been placed in the next few pages.

1) Gender

SR.No Particulars No. of respondents %of respondents

1. Female 63 63%
2. Male 37 37%
3. Prefer not to say 0 0%
4. Total 100 100%

Interpretation
From the above chart it is realized that 63% of the total number of participants
were Female while 37% of the total number were Male. This clearly shows that there
were slightly more Female participants than Male.

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2) Age

SR.No Particulars No. of respondents %of respondents

1. 18-25 69 69%
2. 25-40 29 29%
3. 40 Above 2 2%
4. Total 100 100%

Interpretation
The above chart representation, its can be clearly seen that 69% of the
respondents are between 18-25 Yrs, 29% of the respondents are between 25-40 Yrs,
2% of the respondents are More than 40 Yrs.

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3) How do you come to know about recruitment process ?

SR.No Particulars No. of respondents %of respondents

1. Online 58 58%
2. Government job 20 20%
site
3. Friends/Family 19 19%
4. Others 3 3%
5. Total 100 100%

Interpretation
The chart representation indicates 58% of respondent come to know about the
job opportunity through online And 20% respondents through Government job site.
19% of them come to know about the job opportunities through friends and Family and
3% respondents are come to know about opportunities from other sources.

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4) Which selection Process do you feel is the most difficult one ?

SR.No Particulars No. of respondents %of respondents

1. Interview 71 71%
2. Written 29 29%
3. Total 100 100%

Interpretation
The above chart represents that the 71% respondents feel interview is most
difficult process of selection. And 29% peoples are feel written exam is most difficult
selection process.

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5) What do you think is important in banking selection ?

SR.No Particulars No. of respondents %of respondents

1. Personality 6 6%
2. Banking 26 26%
knowledge
3. General 5 5%
awareness
4. All of the above 63 63%
5. Total 100 100%

Interpretation
Above chart represents the 6% of respondents are feel personality is important
in banking selection process and 26 % are banking knowledge.5% respondents feel
General awareness is important in banking selection and 63% are feel All of the above
is important in banking selection process.

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6) Which bank do you prefer the most ?

SR.No Particulars No. of respondents %of respondents

1. Private Bank 26 26%
2. Nationalized 74 74%
bank
3. Total 100 100%

Interpretation
The above chart shows the 74% people are prefer Nationalized banks and
others 26% are prefer Private bank.

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7) From when do you have started preparing for banking exams ?

SR.No Particulars No. of respondents %of respondents

1. 6 Months 29 29%
2. 1 Yr. 24 24%
3. 2 Yrs. 13 13%
4. More Than 2 Yrs. 11 11%
5. Not preparing 23 23%
6. Total 100 100%

Interpretation
Representation of the above chart is 29% respondents preparing for banking
exams from 6 Months and 24% are preparing from 1 Yr. And 13% are 2Yrs. The
respondents are preparing for banking exam from More than 2Yrs.are 11% and 23%
are not preparing for banking exams.

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8) What kind of interview you feel is the best ?

SR.No Particulars No. of respondents %of respondents

1. Online Interview 50 50%
2. Offline Interview 50 50%
3. Total 100 100%

Interpretation
From the above chart candidates feel the Online Interview and Offline
Interview both are equally best.

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9) What type of atmosphere during interview ?

SR.No Particulars No. of respondents %of respondents

1. Pleasant 40 40%
2. Tense 60 60%
3. Total 100 100%

Interpretation
Representation ravels that 60% of respondents feels tens atmosphere during interview
and 40% feels pleasant atmosphere during interview.

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10) Which banking exam you prefer for selection ?

SR.No Particulars No. of respondents %of respondents

1. IBPS 44 44%
2. Private Banks 11 11%
3. SBI 36 36%
4. Others 9 9%
5. Total 100 100%

Interpretation
Above chart shows that the 44% respondent select IBPS for selection and
11% are Private Banks. 36% respondents select SBI for selection and 9% are select
other Banks for selection.

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11) What factors help to improve recruitment and selection process ?

SR.No Particulars No. of respondents %of respondents

1. Equal opportunity 68 68%
for all
2. Procedure for 16 16%
selection
3. Qualification 8 8%
linked to job
4. Early 5 5%
Advertisement
and detailed job
Description
5. Adequate 3 3%
background
check
6. Total 100 100%

Interpretation
The majority of 5% respondents were of the opinion that vacancies should be
advertised early and should be detailed enough for prospective applicants to assess
themselves whether they can do the job required of them. 8% respondents stated that
job orientation and applicants with the right qualifications should be given the
opportunity. Respondents explained that though job orientations are often done for new
recruits, qualification should be linked with the job. 68% respondents were of the

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opinion that that all applicants should be given an equal opportunity of being selected
and treated fairly while all favoritism and biases are eliminated to ensure that all get a
fair chance of being selected and employed at the bank.17% respondents stated that the
procedure for selection of potential employees should be strictly adhered to. 3%
respondents stated that adequate background check on all potential employees should
be the order of the day. Respondents explained that the division should not solely rely
on the qualifications and experience but lifestyles and background of all would be
employees should be checked to make sure the best is being recruited for the bank.

12) Effectiveness of Recruitment and selection process ?

SR.No Particulars No. of respondents %of respondents

1. Very good 20 20%
2. Good 80 80%
3. Indifferent 0 0%
4. Not effective 0 0%
5. Total 100 100%

Interpretation
Out of all respondents, 20% respondents were of the opinion that the selection
and recruitment practices were very effective and that the right materials are employed
for the bank. 80% respondents believed that the recruiting and selection practices were
good; they explained that the methods needed for the right person to be employed are
used.

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13) There should be what criteria of age ?

SR.No Particulars No. of respondents %of respondents

1. 18+ 20 20%
2. 21+ 77 77%
3 25+ 3 3%
4. Total 100 100%

Interpretation
Above chart represent the 20% respondent were of the opinion that
the 18+ criteria of age for banking exam and 77% respondent were
opinion is 21+ age and 3% respondent opinion is 25+ age criteria for
banking exam.

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14) Reason for attractiveness of job ?

SR.No Particulars No. of respondents %of respondents

1. Pay scale 11 11%
2. Job Security 56 56%
3. Welfare 7 7%
opportunity
4. Future prospects 26 26%
5. Total 100 100%

Interpretation
Representation reveals that 56% of respondent opinion on attractiveness of job
is job security, 26% of them opinion is future prosperity and 7% of them for welfare
opportunity,11% are for pay scale. From the above analysis it is very clear that more
number respondents opinion is of job security.

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15) Reservation policy affecting the quality of Recruitment and

selection process ?

SR.No Particulars No. of respondents %of respondents

1. Yes 79 79%
2. NO 20 20%
3. May be 1 1%
4. Total 100 100%

Interpretation
Above representation shows the 79% of respondents said that reservation
policy is affecting the quality of recruitment and selection and 20% of respondents said
that reservation policy is not affecting. Reservation policy is affecting the quality of
recruitment and selection process.

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16) Dose the bank have any agent for Recruitment & Selection
process ?

SR.No Particulars No. of respondents %of respondents

1. Yes 42 42%
2. No 18 18%
3. Maybe 40 40%
4. Total 100 100%

Interpretation
Above chart shows that the 42% respondents said that bank have agent for
recruitment and selection process and 18% respondents said no agent for recruitment
and selection process.40% respondent said that maybe bank have agent.

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CHAPTER 5
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 are 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 prospective. To face
the future challenges, banks should take steps to recruit talented young people.
The focus of recruitment and selection is to match the capabilities of
prospective candidates against the demands and rewards inherent in a given job. For
this reason, top performing companies devote considerable resources and energy to
creating high quality selection systems. Recruitment and selection process are
important practices for human resource management, and are crucial in affecting
organizational success. The quality of new recruits depends upon an organization's
recruitment practices, and that the relative effectiveness of the selection phase is
inherently dependent upon the caliber of candidates attracted. From the analysis,
recruitment and selection is apex importance to Bank in order to get the best
employees, however, it faces lots of challenges in its quest to recruit its workforce.
The issue of employee referrals seems to place unfair advantage over others, as more
often than not; they are favored compared to those who use a different channel.From
the analysis it was realized that, more employee referrals are employed than those who
apply in directly or through the agencies.
The success of a commercial bank largely depends on the quality of service
rendered to the clients. Quality of service depends on the competence and the quality
of the employees of the organization. Therefore, the authority of bank has to be
careful in recruiting and selecting the right person for each job.

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