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RECRUITMENT
Meaning:
Recruitment means to estimate the available vacancies and to make the suitable arrangements for
their selection and appointment. It is prior to selection. In the recruitment process, the available
vacancies are given wide publicity and suitable candidates are encouraged to submit applications
so as to have a pool of eligible candidate for scientific selection. It is the process of searching
and obtaining applications from interested candidates so as to have a pool of job seekers from
whom most suitable persons can be selected for appointment.
In recruitment, information is collected from interested candidates. For this, different sources of
recruitment such as newspaper advertisement, employment exchanges, internal promotions, job
portals, etc. are used. Recruitment represents the first contact that a company makes with
potential employees.
Recruitment is a positive function in which publicity is given to the jobs available in the
organization and interested candidates are encouraged to apply for the same. Recruitment done
well ensures better selection of staff required.
Definition:
According to EDWIN B. FLIPPO, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.”
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Features:
1. Recruitment is a searching process involving many activities useful for selection process.
2. It is a linking/connecting activity which brings the job providers (employers) and the job
seekers (employees) together.
3. Recruitment encourages interested candidates to apply for jobs so that a pool of eligible
persons will be available to the employer for selection purpose.
4. Recruitment is a positive and persuasive process.
5. Its purpose is to attract many candidates for available jobs.
6. Recruitment is prior to selection. It creates proper ground work for the selection process.
7. It is a complex process in which attention needs to be given to various factors such as
company’s image, nature of the job, qualifications/qualities required for the job,
compensation payable, labor laws, etc.
8. It is a lengthy process with many elements related to recruitment policy and techniques.
Need for Recruitment:
The need for recruitment may be due to following reasons:
1. Vacancies due to promotions, transfers, retirement, termination, permanent disability,
death and labor turnover.
2. Creation of new vacancies due to growth, expansion and diversification of business
activities. In addition, new vacancies are possible due to job respecification.
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Sources/Methods of Recruitment:
Sources of recruitment are the outlets through which suitable and interested candidates are
available. These sources are divided into two broad categories. These are: 1. Internal sources and
2. External sources. Companies can use any source or both the sources and even a combination
of both the sources is desirable.
A) Internal sources of recruitment:
1. Promotions
2. Transfers
3. Internal notification
4. Retirements
5. Recalls
6. Former employees
1. Promotions:
In order to motivate the existing employees, the management may follow the policy of
internal promotions. Promotion means an improvement in pay, position, authority, status
and responsibilities of an employee within the organization. Many achieve promotion
through hard work and good performance. In non-unionized companies, promotions are
made on the basis of merits because the employers are free from the union pressure.
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2. Transfers:
Whenever a new vacancy is created within the organization, management may fill the
vacancy through transfer of existing employee rather than employing a new hand, e.g.,
transfer from head office to branch office.
3. Internal notification:
Sometimes, management issues an internal notification for the benefit of its existing
employees. Most employees know from their own experience about the requirements of
the job and what sort of person the company is looking for. Often employees have friends
or acquaintances who meet these requirements. Suitable persons are appointed at the
vacant posts.
4. Retirements:
At times, management may not find suitable candidate in place of the one who had
retired, after meritorious service. Under the circumstances, management may decide to
call retired managers with new extensions.
5. Recalls:
When management faces a problem which can be solved only by an employee who has
proceeded on a long leave, it may be decided to recall that person. After the problem is
solved, his leave may be extended.
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6. Former employees:
Individuals, who left for some other job, might be willing to come back for higher wages
and incentives. An advantage with this source is that the performance of the
person/employee is already known.
B) External sources of Recruitment:
1. Campus recruitment
2. Press advertisements
3. Recruitment through Management Consultants and Private Employment Exchanges
4. Deputation of personnel
5. Management training schemes
6. Walk-ins, write-ins and talk-ins
1. Campus recruitment:
The growth of Management institutes, IITs and regional and other engineering colleges
has provided a popular source of recruitment known as Campus recruitment/selection.
Private sector is able to attract many young promising aspirants from colleges. It is an
excellent source of recruiting/selecting management trainees. This method is convenient
to companies and students studying in the final year of degree courses. Placement
services are now provided by all engineering colleges and polytechnics. For campus
selection, the selection committee of business organization may personally visit the
institute campus. It supplies information regarding company and vacancies available.
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Applications are collected from interested students. Such students are interviewed within
the campus and suitable candidates are selected and are asked to join the organization
after the declaration of the result of the final degree examination.
This method of recruitment/selection is easy, quick and economical. It is convenient to
the company as well as candidates. Many colleges and institutions have their own
placement cells to serve as a liaison between students and employers.
2. Press advertisements:
Press advertisement is very widely used for recruitment of all categories of personnel
particularly for the appointment of middle level managers. Though quite costly, it
provides wide choice as it attracts a large number of suitable candidates from all over the
country.
Press advertisement is also called Recruitment advertisement as its purpose is to give
publicity to vacancies available in the organization and also appealing deserving
candidates to submit applications. In the recruitment advertisement, the details of job (i.e.
job description and job specification) are given. In addition, other details such as
information to be supplied, copies of documents to be attached, to whom and on what
address the application is to be submitted are given. This gives convenience to interested
candidates.
Along with press advertisement, internet facility is used for advertising vacancies in
companies. Even application for job can be sent through on-line facility.
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3. Recruitment through Management Consultants and Private Employment
Exchanges:
Management consultants make necessary arrangements and select the suitable staff
required by a business unit. For this, they give advertisement, conduct tests and also
arrange interviews, etc. similar service is provided by private employment exchanges that
keep details of candidates interested in jobs and provide services to employers.
Placement agencies are also useful for recruitment purpose. These agencies are useful for
the recruitment of managers/executives and specialists. They perform all the functions of
recruitment and selection. As a result, the client is relieved from the botheration relating
to recruitment and selection. This source of recruitment is reliable and also professional.
However, this source is costly as agencies charge high commission for the services
rendered.
4. Deputation of personnel:
For executive positions for short period, the services of an executive from another
company can be used on a loan basis. This method is useful only for a temporary period.
The practice of hiring services of personnel is quite common in the case of sister
enterprises. In the public sector enterprises, officers can be transferred from one
enterprise to another.
5. Management training schemes:
Some companies introduce management training schemes for recruitment and selection
of executives (e.g., Hindustan Lever Ltd.). Here, young talented candidates of the age
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group of 20 to 25 are selected as trainee executives in different areas such as accounts,
technical and commercial. After selection, the candidates are sent to their management
training institutes for extensive training. After completion of training, the candidate is
appointed as a regular executive or manager.
6. Walk-ins, Write-ins and Talks-ins:
The most economical approach for recruitment of candidates is direct applications. The
job seekers submit applications or resumes directly to the employer. The advertisement
mentions date, day and timing during which the applicant can ‘walk-in’ for an interview.
From applicant’s point of view, walk-ins are preferable as they are free from the
formalities associated with other methods of recruitment. Write-ins are those who send
written inquiries. These applicants are asked to complete application forms for further
processing. Talk-ins are now becoming popular and the applicants are required to meet
the employer for detailed talks. The applicant is not required to submit any application.
7. Miscellaneous external sources:
a. Giving extension to existing executives after reaching the age of retirement.
b. Appointment of retired officers from civil service or from public sector organizations.
c. Use of professional meetings and conventions for the selection of executives.
d. Use of executive placement agencies.
e. Assistance from professional associations.
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SELECTION
Meaning:
Selection is the most crucial stage in the process of acquiring human resources in an
organization. Selection is next to recruitment. It is the process of choosing the most suitable
candidates out of many interested candidates. It is a process of selecting the best and rejecting
the rest. This selection is also called “Head Hunting”. This means searching right candidate for
the specific job in the organization. In this lengthy selection process, interested candidates are
differentiated in order to identify those with a greater likelihood of success in a job. Selection
process assumes that the applicants are more than the number of candidates to be selected.
Selection is a negative function as it relates to elimination of unsuitable candidates. “Right man
for the right job” is the basic principle in selection. Selection of most suitable candidates is a
responsible type of work as selection of unsuitable candidates for jobs creates new problems
before the business unit. For appropriate selection, scientific procedure needs to be followed. In
addition for scientific selection, job study is essential. Here the features of the job, qualities and
qualifications required for performing the job etc, are studied in detail.
Recruitment and selection are supplementary activities and are also crucial steps in the HR
process. In recruitment, prospective employees are encouraged to apply for the jobs and in the
selection process; the most suitable candidates are selected out of the pool of applicants. The
purpose of both is to have the most suitable and most capable candidates for the organization out
of the pool of available and interested candidates. Such selection is important as it has its impact
on work performance and employee cost. As a result, the objective of ‘right man for the right
job’ is achieved in many organizations.
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Definition:
According to THOMAS H. STONE, “Selection is the process of differentiating between
applicants in order to identify those with a greater likelihood of success in a job.”
Process of Selection and steps involved:
Selection procedure/process is lengthy and time consuming especially in the case of
managerial/supervisory posts. Lengthy procedure is necessary for scientific selection of
candidates. In such procedure, many steps are involved and need to be logically followed.
Selection is generally done by the HR Department often in consultation with the line managers.
The selection process may vary from organization to organization. Brief details of the steps
involved in selection process:
1. Job Analysis:
Job analysis means a process of collecting information about a job. It gives details of a
job to be performed and the human qualities and qualifications required to perform that
job efficiently. It is a scientific and systematic analysis of a job in order to obtain all
relevant facts about the job. Job analysis is divided into two aspects i.e. 1. Job description
(details of job) and 2. Job specification (details of job holder). Job analysis is performed
upon ongoing jobs. Interested candidates are examined with reference to the details
available from the job analysis. Candidates who are not suitable for the job are rejected at
different stages of the selection process. In this sense, selection is like a hurdle race.
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2. Advertisement:
This medium is widely used for recruitment of all categories of personnel. Though quite
costly, it provides a wide choice as it attracts large number of candidates from all over the
country. The qualities and qualifications expected from the candidates are usually
mentioned in the advertisement.
3. Collection of Application blank:
In this step, applications with necessary details are collected from interested candidates.
Some companies give advertisements in the press and ask the interested candidates to
submit applications on a prescribed form.
Application blank is most commonly used to collect information from the applicants. The
information sought and information provided will facilitate the selection process. The
information sought in the application may vary according to the position and the
organization. Mostly applications seek the following type of information: 1. Personal
data, 2. Marital data, 3. Educational data, 4. Physical data, 5. Employment data, 6. Extra-
curricular data and 7. References, 8. Miscellaneous- hobbies, games and sports,
membership of professional bodies, computer knowledge, etc.
When an applicant submits his application blank, he provides a brief bio-data about
himself to the organization. It facilitates comparison among the applicants and serves as a
basis to initiate a dialogue in the interview.
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4. Scrutiny of Applications received:
After the last date fixed for the receipt of applications, officer from the personnel
department starts the scrutiny of applications received. Incomplete applications are
normally rejected. Applicants who do not possess required qualifications, experience, etc.
are also rejected. Along with this the certificates, testimonials and references are also
checked.
5. Written tests:
After the scrutiny of applications, a final list of candidates is prepared for the written test.
The purpose of such test is to judge the knowledge of the candidate and also to find out
his intelligence, aptitude, capacity, interests and suitability for a specific job. Trade test is
particularly necessary for technical jobs. Written tests are also used in banks and financial
corporations. The candidates whose performance in such tests is not upto the mark are
then rejected.
6. Psychological tests:
The psychological tests given to candidates include Intelligence test, aptitude test, interest
test, achievement test, analytical test, performance test, synthetic test and personality test.
Each test needs to be given separately and each test is useful for judging specific quality
of a candidate to be selected for the post.
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7. Personal Interview:
The candidates who show reasonably good performance in the tests are called for
personal interview. The interview is conducted by one interviewer or by a group of
interviewers including the top officers of the company and other professional experts.
The candidate is asked various questions and information on various matters is also
supplied to the candidates during the course of the interview. Interview acts as face to
face appraisal of the candidates. It plays a key role in the final selection. Here, an attempt
is made to judge the overall personality of the candidate. The selection committee notes
the strong and weak points of the candidate and the best candidates are selected for final
appointment by applying certain uniform norms.
8. Reference check:
The candidate is required to give atleast two references which may be educational, social
and employment related. These references help to cross check the information provided
by the candidate.
9. Medical examination:
The purpose of medical examination is to judge the general health and physical fitness of
the candidate. Candidates who are not physically fit for the specific job are rejected even
when they show good performance in the tests and personal interview. Medical test is
taken in case of all candidates before appointment. In case of certain jobs, the test is of a
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general nature. However, medical examination has special importance in the armed
forces.
10. Final slection/ approval for appointment:
The selection procedure comes to an end when the final appointment letter is sent to the
candidate with a request to join the organisation on a particular date. The letter states the
post, title of the job, the salary and terms and conditions of the employment and
probation period, if any. At times, a contract of service is signed by both the employer
and the employee. Initially, the appointment is on a probation and after a year or two, it is
confirmed provided the performance of the candidate is satisfactory.
After dis follow up is done regarding the performance of the selected employee in order
to check whether he is eligible to continue to work in the company as a permanent
employee or not. This follow up is generally done during the probation period before the
employee is appointed permanently by the company.
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CHAPTER 2: COMPANY PROFILE AND BACKGROUND
Profile of Aviva:
Aviva is UK’s largest and the world’s fifth largest insurance group. It is one of the leading
providers of life and pension products to Europe and has substantial businesses elsewhere around
the world. With a history dating back to 1696, Aviva has a 40 million customer base worldwide.
It has more than £377 billion of assets under management.
In India, Aviva has a long history dating back to 1834. At the time of nationalisation, it was the
largest foreign insurer in India in terms of compensation paid by the Governement of India.
Aviva was also the first foreign insurance company in India to set up its representative office in
1995.
In India, Aviva has a joint venture with Dabur, one of India’s oldest and largest group of
companies. A professionaly managed company, Dabur is the country’s leading producer of
traditional health care products.
In accordance with the Government regulations, Aviva holds a 26 percent stake in the joint
venture and the Dabur group holds the balance 74 percent stake.
Dabur74%
Aviva26%
Percentage stake
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With a strong sales force of over 28,000 Financial Planning Advisors (FPA’s), Aviva has
initiated an innovative and differentiated sales approach to the business. Through the “Financial
Health Check” (FHC), Aviva’s sales force has managed to establish its credibility in the market.
The FHC is a free service administered by the FPA’s for a need based analysis of the customer’s
long-term savings and insurance needs. Depending on the life stage and earnings of the
customer, the FHC assesses and recommends the right insurance product for them.
Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in
Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN
Amro Bank, American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Laxmi
Vilas Bank Ltd. And Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Bihar,
Jammu & Kashmir, West Bengal, Andhra Pradesh and Maharashtra and regional banks.
When Aviva entered the market, most companies were offering traditional life products. Aviva
started by offering the more modern Unit Linked and Unitised with Profit products to the
customers, creating a unique differentiation. Aviva’s products have been designed in a manner to
provide customers flexibility, transparency and value for money. It has been among the first
companies to introduce the more modern Unit Linked products in the market. Its products
include: Whole life (Lifelong), Endowment (LifeSaver, Easy Life Plus, LifeSaver Plus), Child
policy (Young Achiever, SaveGuard junior, Aviva little Master), Single Premium (LifeBond and
LifeBond Plus), Pension (Pension plus), Term (LifeShield), Fixed term protection plan (Freedom
LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond 5).
Aviva products are modern and contemporary unitised products that offer unique customer
benefits like flexibility to choose cover levels, indexation and partial withdrawals.
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Aviva’s Fund management operation is one of its key differentiators. Operating from Mumbai,
Aviva has an experienced team of fund managers and the range of fund options includes Unitised
With-Profits Fund and Four Unit Linked Funds: Protector fund, Secure fund, Balanced fund and
Growth fund.
Aviva has 176 branches in India (including all rural branches) supporting its distribution
network. Through its Bancassurance partner locations, Aviva products are available in close to
500 towns and cities across India.
Aviva is also keen to reach out to the underprivileged that have not had access to insurance so
far. Through its association with Basix (a micro financial institution) and other NGO’s, it has
been able to reach the weaker sections of the society an dprovide life insurance to them.
Aviva has been felicitated with the “Bronze Award for Excellence in People Management” by
Grow Talent Company Ltd. And Businessworld. This honor is given to Aviva based on the ranks
received in Top 25 list of the Great Place to work India studies conducted in the last four years.
Aviva was ranked 12th in 2003, 14th in 2004 and 13th in the year 2005.
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Promoters (Joint Venture):
Dabur:
Founded in 1884, Dabur is one of India’s oldest and largest group of companies with
consolidated annual turnover in excess of Rs. 2,834 crores.
A professionally managed company, it is the country’s leading producer of traditional
health care products.
Aviva:
Aviva is UK's one of the largest insurer and one of Europe's leading providers of life and
general insurance.
Aviva is the world's sixth largest insurance group based on gross worldwide premiums
for 2010 year.
Aviva’s principal business activities are long-term savings, fund management and general
insurance, with worldwide total sales* of £40.6 billion and operating profits of at £2.5
billion at 31 December, 2011.
With a history dating back to 1696, Aviva Group has a 43 million customer base
worldwide.
Competitors of Aviva Life Insurance:
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LIC
ICICI Prudential
BIRLA Sun Life
BAJAJ Allianze
SBI Life Insurance
HDFC Standard Life
TATA AIG
MAX NEW YORK
MET LIFE
Comparison between the share of LIC and other Private Players in Indian
market:
LIC78%
Others22%
Market share
Glimpse of the members of the Management team of Aviva Life Insurance:
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Name Designation
T R Ramachandran Chief Executive Officer & Managing Director
Rishi Piparaiya Director, Marketing & Bancassurance
Ravi Bhadani Company Secretary & Director-Legal & Compliance
Munish Sharda Director, Direct Sales Force
Jyoti Vaswani Chief Investment Officer & Director, Fund
Management
Sanjeeb Kumar Appointed Actuary
Anupam Tyagi Chief Risk Officer
Amit Malik Director, HR
Snehil Gambhir Chief Operating Officer
Vijayalakshmi Natarajan Director, Operations
Jitendra Nayyar Director, Finance
Aviva’s Vision:
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Aviva- where exceeding expectations through innovative solutions is “our” way of Life.
This is the compelling vision that Aviva India has created through the active contribution of its
employees. These lines not only define the way they live and work but also serve as a reminder
to deliver the best to their customers, shareholders, colleagues, partners and employees at all
times.
Embedded in this vision are the core values of Integrity, Customer Centricity, Passion for
winning, Innovation and Empowered team that they have collectively defined and committed to
working towards.
Aviva’s vision is also to be amongst India’s leading life insurers with a quality business model,
focused on sustainable growth. They seek to build a robust product portfolio meeting all
customer lifecycle needs related to – Protection, Retirement, Savings and Investments.
Keeping with their commitment of social responsibility, they have been successful in reaching
out to the underprivileged strata through their Microinsurance initiatives.
Partners:
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Aviva has committed to help its customers get “Kal par control” and make the most out of their
lives. It is their constant endeavour to ensure that their customers have easy access to AVIVA
products and services at all times.
Aviva has pioneered Bancassurance in the country through its tie-up with 22 leading private and
nationalised Banks in the country. Aviva also focusses on Bancassurance worldwide and has a
proven track record of successful bancassurance relationships. It has 40 major partnerships with
leading banks across the globe. Aviva is a leading bancassurer in countries such as France, Italy,
Spain, Australia and New Zealand. Aviva’s partners include:
ABN AMRO Bank
IndusInd Bank
DBS Bank
American Express Bank
The Laxmi Vilas Bank Ltd.
Canara Bank
Punjab & Sind Bank
Centurion Bank of Punjab
Co-operative and Regional Rural Banks
Rajasthan Gramin Bank
Vidharbha Kshetriya Gramin Bank
Prime Co-operative Bank
Sutlej Gramin Bank
Aviva’s guiding Principles:
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1. Recruit the best
2. Accept personality responsibility
3. Build an empowered team
4. Building a shared vision and purpose
5. Leadership development
6. Reward and recognition
Recruit the Best:
Aviva India has a well articulated equal opportunity policy, which lays strong emphasis on hiring
of individuals irrespective of age, race, caste or gender. As a best practice in recruitment, they
deployed identified psychometric tools such as SHL and Belbin and designate ability tests to
eliminate any biases in the resourcing process and facilitate hiring of diverse profiles (vis-à-vis
gender, background, experience levels and competencies). The focus is on competence-based
credentials rather than past experience or length of service.
“Aviva does not follow a very descriptive hierarchy- you have transparency at each level, unlike
most other organizations, where managers and senoor managers don’t ‘look’ after their
subordinates. Here you feel comfortable talking with your seniors.”
At Aviva they have an Employee Referral Programme, which seeks to encourage employees to
be brand ambassadors of the Company and actively contribute to the resourcing process by
recommending candidates with relevant competencies and potentials, thereby facilitating in
strengthening domain expertise within the organization.
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They have a robust Campus programme, which is aimed at hiring students fresh from key B-
schools and providing them with structured inputs and an environment for their personal and
professional growth. The Summer Trainee Program is designed to expose people to the vibrancy
of a complex and competitive business environment, challenge you intellectually and encourage
people to find innovative solutions.
They aim at providing a business perspective and Summer Trainees work on live projects, which
form the core of their business strategy. Not only do they get the freedom to experiment and
make decisions, but also spend quality time with their Project guide or mentor, who provides
them the perspective of the ‘bigger picture’. The programme gives them a unique opportunity to
integrate their classroom learning with the realities of real business, in a live yet safe
environment.
Accept personality responsibility:
“Apart from professional development, Aviva also looks after the personal development of
employees”
They believe that dealing with diversities is an ongoing phenomenon that facilitates the process
for a company to adopt to and capitalize on today’s increasingly complex marketplace. Specific
action plans have been formulated to ensure the mandated gender ratio is achieved at the
recruitment stage for a new position or through job enhancement/job rotation opportunities for
existing roles.
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“The organization has tremendous respect for the individual- which it demonstrates by doing
what it says”
Build an empowered team:
To institutionalize an open and honest environment with shared goals and participative decision-
making, they have various open forums, one such initiative being the Town Hall(s). These are
conducted on a monthly basis by the Managing Director and designate leadership team members.
To share information on celebrations, events and people across locations, a quaterly newsletter
‘Buzz’ is circulated to all members of the Aviva team. It features a message from the Managing
Director, celebrates achievements and milestones of individuals and teams and updates
employees on new and ongoing initiatives and highlights news of past and future events.
“Employees are not working with Aviva, they are living in Aviva”.
In line with their vision statement and one of Aviva’s key values- Innovation, the Company
introduced the popular ‘Ideas 4 Aviva’ scheme. This is an enriching programme in which every
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member of Aviva has an opportunity or open invitation to influence any aspect of business by
giving suggestions and ideas on how to work smatter and better.
Build shared vision and purpose:
“You feel as if you are part of the system when you are included in all the decisions being made
for your function”
As a Company, they encourage self-starters. Given their dynamic environment, one is expected
to deliver from day one. Somewhere between adjusting to new environment and proving their
worth they forget to Ask basic questions.
About the facilities, infrastructure, processes, key people and dynamics of the organization, etc.
information which if provided on time can be very useful. This is how the “Buddy Programme”
was envisaged. Launched in July 2003, it addresses the need of a new employee in terms of
extending a friendly hand apart from the support provided by the Line and the HR Managers.
The objective is simple: To facilitate a seamless transition of the new hire into the Aviva family.
Career management:
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Campus Programme:
They have a robust Campus Programme, which is aimed at hiring students fresh from key B-
schools and providing them with structured inputs and an environment for their personal and
professional growth. The Summer Trainee Programme is designed to expose them to the
vibrancy of a complex and competitive business environment, challenge intellectualy and
encourage them to find innovative solutions.
Leadership Programme:
To strengthen entrepreneurial capabilities required to operate in a fiercely competitive and
dynamic insurance market environment and plan effective succession planning by building
futuristic leadership competencies, various initiatives are taken by the Aviva group.
Reward and recognize performance:
To build a meritocratic environment, they have build and implemented a robust value based
performance management process wherein they recognize significant contributions made in by
their employees in an objective and transparent manner and on demonstrated competence levels.
Further, they also recognize people who ‘walk that extra mile’ in living the Aviva values.
Products and Services:
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They have a full range of transparent, flexible and value for money products that include:
Whole life (Lifelong), Endowment (LifeSaver, Easy Life Plus, LifeSaver Plus), Child policy
(Young Achiever, SaveGuard junior, Aviva little Master), Single Premium (LifeBond and
LifeBond Plus), Pension (Pension plus), Term (LifeShield), Fixed term protection plan (Freedom
LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond 5).
Aviva products are modern and contemporary unitised products that offer unique customer
benefits like flexibility to choose cover levels, indexation and partial withdrawals.
They also offer customer a choice of investment options. They can choose between their unit
linked fund or their with profit fund.
With profit funds guarantees that the selling price of the units will never fall. The unit value of
this fund is increased by crediting bonuses on a daily compounding basis. The fund provides
investment security to the capital.
The Unit Linked Fund is designed to provide relatively more progressive capital growth wherein
customer automatically receive the benefit related to the investment performance of the fund.
Under Unit Linked Fund, on some of our products they offer a choice of fund options:
Protector fund
Secure fund
Growth fund
Balanced fund
CHAPTER 3: RECRUITMENT AND SELECTION AT AVIVA
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Human Resource Department At Aviva
The HR department looks after the needs and requirements of the present employees. This
Department includes number of function which are as follows:
1. Training and Development –it includes technical, soft skills and process related to training
2. Process and policies –it contains all the rule and regulations that need to be followed by the
employees.
3: Appraisal and increment- it is in the formal feedback to the employees about their
performance and the conduct of work.
4: Induction-involves the information to the new employees about the company, job, departments
etc
5: Motivational activities and entertainment- involves motivating the employees to improve their
productivity.
6: Roles and responsibilities-that every individual employee needs to fulfil
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Functional level
Human Resource Dept.
Recruitment & Selection
Resource allocation
Training & Development
Compensation Management
Employee relations & Grievance
handling
7: Key Result Area (KRA) –it is the measurement quantifiable of output for the roles of
responsibilities.
8: employee separation-includes resignation and dismissal.
9: Joining formalities- take place when a new employee joins the company.
10: Computerization
12: Helpdesk
13: Employee verification-take place at the time of joining of the new employee.
14: Surveys
15: Project trainees
16: Counselling and grievance handling-both are different as counselling is basically helping out
in personal problems whereas, grievances handling involves the handling of complains that the
employees has towards the management.
All the above head are included in the human resource development and involves the over all
development of individual employees which in turn increases the over all profit of the company.
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OVERVIEW OF RECRUITMENT & SELECTION PROCEDURE AT
AVIVA
METHODS OF RECRUITMENT FOLLOWED:
1: Direct method
2: Indirect method
3: Third party method
DIRECT METHOD
The direct method includes sending of the recruiters to different educational and professional
institutions, employees contact with public, and mannered exhibits. Aviva uses this widely used
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MANPOWER REQUISITION FORM
RECRUITMENT PLAN
BUDGET
SOURCING
SELECTION PROCESS
JOINING
POST RECRUITMENT DATA UPDATING
method by sending the recruiters to different colleges and technical schools. This is mainly done
with the cooperation of the placement office of the college.
Other direct methods include sending recruiters to conventions and seminars, setting up exhibits
at fairs, and using mobile offices to go the desired centers.
INDIRECT METHOD
Indirect method involves mainly advertising in newspapers, trade and professional journals,
technical magazines and brochures and most importantly, the internet. The senior posts are largely
filled through such method. Advertising is considered very useful for recruiting blue collar and
hourly worker, as well as scientific, professional and technical employees. Local newspaper are
considered a good source of recruitment for blue collar workers, clerical employees, and lower level
administrative employees. The main point is that the higher the position in the organization the more
dispersed advertisement is likely to be. The search for the top executive includes advertisement in a
national periodical, whereas the advertisement of the blue collar jobs usually confine to the daily
newspaper.
Job portals are used widely in order to publicise and advertise the job details and contact potential
employees.
Three main points considered by Aviva before an advertisement is inserted:
First, to visualize the type of applicants one is trying to recruit.
Second, to write out a list of advantages the company offers, or why should the reader join the
company.
Third, to decide where to run the advertisement , not only in which area, but also in which newspaper
having a local, state or a nation- wide circulation.
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THIRD PARTY
These include the use of commercial or private employment agencies, state agencies, and
placement offices of schools colleges and professional associations recruiting firms, management
consulting firms, indoctrination seminars for college professors, and friends and relatives.
Private employment agencies are the most widely used sources. They charge a small fee from the
applicant. They specialize in specific occupation; general office help, salesmen, technical
workers, accountant, computer staff, engineers and executives.
Objectives of recruitment & selection:
1: To attract with multi dimensional skills and experience that suite the present and future
organization strategies.
2: To induct outsider with new perspective to lead the company.
3: To infuse fresh blood at all levels of organization.
4: To develop an organizational culture that attracts competent people to the company.
5: To search or headhunt people whose skill fit the company’s values.
6: To seek out non-conventional development grounds of talent
7: To devise methodology for assessing psychological traits.
8: To search for talent globally not just with in the company.
9: To design entry pay that competes on quality but not on quantum.
10: To anticipate and find people for position that doesn’t exists yet.
Factors undertaken while formulating recruitment policies:
- Government policies
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- Recruitment sources
- Recruitment needs
- Recruitment cost
- Organizational and personnel policies
Recruitment & Selection Process
The actual steps involved in recruitment at Aviva follow a well defined path:
Application shortlist: In this step, they shortlist the resume received from various sources based
on the suitability for the requirement.
Preliminary Assessment: The short listed candidates go through a preliminary round of
interviews. This interview lays more emphasis on functional competencies. To have more data
on the functional skills, the candidates may be given a business case for analysis and presentation
(This is done for certain positions only).
Final interview: Here the candidates who successfully clear the first round of interview go
through another round of interview with one or more of the functional heads.
Medical Evaluation: Candidates who are selected by Aviva are asked to undergo a medical test.
Evaluation of the recruitment & selection process:
The following are the evaluation of the recruitment method
1: Number of initial enquires received which resulted in completed application forms
2: Number of candidates recruited.
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3: Number of candidates retained in the organization after six months.
4: Number of candidates at various stages of the recruitment and selection process, especially
those short listed.
5: Return rate of application sent out.
6: Number of suitable candidates for selection.
7: Retention and performance of the candidate selection.
8: Cost of recruitment
9: Time lapsed data.
10: Comments on image projected.
Importance & effectiveness of proper recruitment & selection at Aviva:
1. Attracts highly qualified and competent people
2. Ensures that the selected candidates stay for longer period with the company.
3. Make sure that there is balance between cost and benefit.
4. Helps the organization to create more culturally diverse workforce
Whereas, poor quality of selection means extra cost on training and supervision. Further, when
recruitment fails to meet organizational needs for talent, a typically response is to raise entry
level pay scales. This can distort traditional wages and salary relationship in organization,
resulting in unavoidable consequences. Thus the effectiveness of the recruitment process can
play a major role in determining the resources that must be expended on other HR activates and
their ultimate success.
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RECRUITMENT OF FINANCIAL ADVISORS AT AVIVA
Advisors are the backbone of any life insurance company. They play the most important and
key role for company to cashing the revenue through selling the insurance policies.
Some years ago Advisors were known as Agents but now they are known as Advisors which
seems to be more appropriate.
As an AVIVA Advisor, the sky is not the limit—you can go beyond
In India, ever since the insurance industry has opened up, opportunities for insurance
companies have become limitless. To tap this opportunity, they require Insurance agents
because agents are one of the most significant modes of bringing in much-needed business
to the company. At AVIVA Life Insurance, one will not merely be an Insurance agent—but
one will be a Financial Advisor. He will have an important role to play because he has to
give valuable advice to prospective customers about their financial planning.
Hiring Process
At Aviva, they understand that potential advisors come from diverse backgrounds and therefore
they evaluate advisors only for who they are. Aviva has a uniform multistage procedure, where
every applicant gets a fair chance of making it to their team.
They have a numerical rating system, where all the attributes, be it qualifications or experience,
age or family background of the applicants, all have predetermined points weightage. These
points determine the basic eligibility of a candidate. Once eligible, a screening interview is
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conducted, followed by a basic assessment test. Successful candidates make it to the final round
of interviews. Final selections depend upon the applicants overall performance.
So whether one is a housewife, ex-serviceman, freelancer, post office agent, entrepreneur, or a
chartered accountant, one can join the Aviva team.
Career Progression
Aviva supports its advisors in every step they take towards success. Their career development is
Aviva’s responsibility, once they are part of Aviva’s team. With this attitude Aviva encourages
and provides opportunities to all their deserving advisers to climb their career ladder, to be a part
of their sales management team, moving onto senior roles with each successful climb.
The sheer dedication, hard work and performance of the advisors can help them reach the highest
levels of success. Aviva absorbs deserving agents in their team as employees and help them build
a full time career.
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Benefits Available for Advisors
Apart from being remunerated well, Advisors get a lot of recognition and can win awards by
participating in the monthly, quarterly, half yearly, yearly business competition. These
business reviews can fetch foreign tours and travel free of cost.
Essential Demographic Factors In Financial Advisors
Some demographic factors which are considered while recruiting a financial advisor are :
· Time in area
· Income history
· Education level
· Leadership experience
· Sales background
· Community involvement
· Employment background
· Professional background
Keeping in mind the above mentioned factors there are certain laid down by the company which
the researcher had to abide by while recruiting a financial advisor. The recruitment process is as
follows.
NAME GATHERING -
INITIAL SCREENING DAY 1
TEST & REFERENCE CHECK DAY 3
CAREER SEMINAR/ ADMINISTERING P200 DAY 6
EVALUATION OF P200 & SURVEY DAY 10
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CAREER INTERVIEW DAY 11
ADDITIONAL INTERVIEW DAY 12
Name Gathering
The importance of this activity can be reffered in a way that “prospecting is the single most
important skill required for a manager’s future success”. Industrial studies have proven the
importance of prospecting. Studies of high retention and high productivity agencies have found
only one major discriminator between these agencies and those with poor retention and
productivity. The discriminator found was simply the fact that good offices interview more
candidates per hire. “On an average these agencies conduct 20 screening interview and
administer 15 numerical ability test for each agents hired. Conversely the low productivity and
retention agencies conduct only 12 screening interviews and administer 7 numerical tests per
hire. Clearly effective prospecting is the answer. In this manner it was able to select one suitable
candidate out of unsuitable candidates..
Effective Sources Of Name Gathering
The sources of name gathering can be broadly divided into two categories
a) Primary Sources
· Agent referrals
· Centre of Influences
· Nominators
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· Personal Observations
· Policy Holders
· Friends and Family
b) Supplement Sources
· Newspaper Advertising
· Direct mail/ Pre-Approach Letters
· Employment news
· Seminars
· Campus Recruitments
· Personnel Directors.
Agent Referral Program (ARP)
Agent Referral Program (ARP) is a unique tool in sourcing quality new names from successful
advisors. It can also act as an additional income opportunity for the advisors. The existing agent
advisors in the team are required to give references of prospective names. As they are in the
business they know the requirement better and so they are the best source of quality names. In
order to get quality names from the financial advisors the the researcher had to.
· Ask for references in every Performance review and planning (RPP)
· Ask after every successful field demonstration.
· Take Advisors out for dinner and use the opportunity to ask for referrals.
But in turn there is a need to reward and encourage the financial advisors so that this becomes an
ongoing habit.
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Centre of Influence
A centre of influence can be defined as people with whom you already have an established
relationship for referrals as a financial advisor are centers of influence for recruiting will include
friends business and civic contacts and your clients. Because these people respect you as a
professional they will want to help you succeed. Ultimately they will most likely be your second
most productive source of candidate referrals. Referrals from agents have consistently proven to
be the best source for quality names. The researcher began with Centre of Influence at this point
because in yhe beginning there were few of known advisors to ask. To cultivate your Centers of
Influence there is a need of well organized presentation of the career opportunity and a
description of the type of candidate company seeks. Therefore presentation must direct the focus
of the candidates to a different set of qualities and characteristics for advisor candidate’s
referrals.
Nominators
A prominent person in the community who may be in a position to recommend prospective
advisors is the nominator. Development of nominator can be a very useful practice as they can
also be a very good source of quality names. With constant communication with the nominator
he/she can be developed into a Centre of Influence. So this practice if done religiously can be a
very good source of quality names. For better results the companies has laid down certain scripts
which had to be used while communicating with the nominator
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Personal Observation
It can be defined as a face to face contact made on an impromptu basis in order to secure an
appointment for a recruiting interview. Effective recruiting requires consistent activity. Personal
observation is a method of prospecting that enables to be always in a position to recruit and take
advantage of every opportunity that arises. These opportunities usually occur in the midst of
some other activity or event. Through personal observation, more and more caliber of the
individual was noticed in every meet. These are some of the most effective sources of gathering
names. There are other very important sources like newspaper advertisements, seminars, college
interns etc. but these sources should be used as supplementary means to the once discussed
earlier for greater result and consistency.
Recruitment Funnel
The importance of name gathering can be seen form the recruitment funnel. The funnel says that
in order to recruit 2 quality agents the sales manager should have 60 qualified names. Out of
those 60 qualified names there should be at least 20 initial screening, and 8 career seminars and 4
career interview. This shows how important getting enough qualified names is. Also since the
Aviva Life works on a quality model, therefore it is important to screen good number of well
qualified names before recruiting advisors.
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DATA ANALYSIS
In AVIVA life insurance most of the employees feel that the HR department is good.
The Human Resource need forecast is mostly done quarterly or according to the situation
and not depending on fixed period.
The most preferred method of recruitment is the direct method and external sources of
recruitment are used more than internal sources.
Usually, 3-5 rounds of interview are taken depending upon the job position.
At aviva, basic assesment tests are conducted such as aptitude test to chech the reasoning
ability, analytical skills, etc. of the candidates so also medical fitness and reference
checks are conducted by the company.
They usually do not prefer recruiting through placement agencies but it depends on the
need.
Aviva prefers to go for campus interviews and even casual application that are received
for recruitment but they hardly prefer placement agencies.
Personal interview the most preferred type of interview followed by telephonic rounds as
well.
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CONCLUSION
This presents the summary of the study and survey done in relation to the Recruitment and
Selection in AVIVA life insurance. The conclusion is drawn from the study and survey of the
company regarding the Recruitment and Selection process carried out there.
The recruitment process at AVIVA life insurance to some extent is not done objectively and
therefore lot of bias hampers the future of the employees. That is why the search or headhunt of
people should be of those whose skill fits into the company‟s values.
Most of the employees were satisfied but changes are required according to the changing
scenario as recruitment process has a great impact on the working of the company as a fresh
blood, new idea enters in the company.
Selection process is good but it should also be modified according to the requirements and job
profile so that main objective of selecting the candidate could be achieved.
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RECOMMENDATIONS
Manpower requirement for each department in the company should be identified well in
advance.
If the manpower requirement is high and the recruitment team of the HR department
alone cannot satisfy it, then help from the placement agencies should be taken.
Time management is very essential and it should not be ignored at any level of the
process. There should be no bias.
The recruitment and selection through placement agencies should be considered as the
last resort and utilised only when need.
The recruitment and selection procedure should not be too lengthy and time consuming.
The candidates called for interview should be allotted timings and it should not overlap
with each other.
Use of Job portals on the internet such as Naukri.com, timesjob.com, etc. should be made
excessively to contact potential employees.
Details of vacancies in the company should be properly publicised through
advertisements in local newspapers and more emphasis should be given to ads on internet
job portals that are becoming a widely used platform for connecting the employers and
employees.
Campus recruitment should be given more importance in order to employ fresh blood in
the enterprise.
HR Department should conduct continous cold calling and screening of candidates
through telephonic interviews.
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REFERENCES:
C.B Mamoria and S.V. Gankar (2004), Personal Management Text and Cases. Himalaya
Publication.
K.Aswahthappa (2001),Human Resource and Personnel Management
Human Resource Management, (2005), Dr.P.C. Pardeshi
C.B Gupta (2005)
www.avivaindia.com
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ANNEXURE:
QUESTIONNAIRE:
1. When are the Human Resource needs forecasted?
Quarterly
Monthly
Annualy
Not fixed
2. What method do you prefer for recruitment?
Direct method
Indirect method
Third party
3. Which sources do you mostly rely on for recruitment?
Internal sources
External sources
Both
4. How many rounds of interview do you take?
1-3
3-5
5 & more
5. Do you conduct aptitude test for advisors?
Yes
No
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6. Which of the following tests do you conduct?
Psychometric test
Medical tests
Reference checks
Other
7. Do you prefer recruiting through placement agencies?
Yes
No
8. Do you make use of advertising in newspaper or internet job portals for recruitment?
Yes
No
9. What is the most preferred external recruitment option?
Campus interviews
Placement agencies
Employment exchanges
Data bank
Casual applicants
10. Are you satisfied with the recruitment & selection process?
Yes
No
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