Professional Documents
Culture Documents
QUALITY MANAGEMENT
CONCEPTUALIZATION
This is Total Quality Management Project Report. Human resource is the most important
factor for any organization and success of any Organization is depending upon its
resource .If human resource of organization is not happy with the organization. It will
adversely affect the organization.
The higher degree of commitment toward work will improve productivity and will
decrease rejection cause due to human factor.
So to make the people happy is the responsibility of the organization. So this study is
helpful to measure the level of commitment toward work and to know the factor affecting
the commitment level .
QUALITY:-
1. Quality means fit ness for use.
2. Quality means productivity, competitive cost, and timely delivery, total customer
satisfaction.
4. Conformance to requirements.
6. Quality means getting every one to do what they have agreed to do and to do it right
the first time and every time.
TOTAL QUALITY :-
It means all the people of the organization are committed to product quality by doing
right things right, first time, every time by employing organization resource to provide
value to customer.
TOTAL:
Every one associated with the company is involved in continuous improvement, in all
functional area, at all level.
QUALITY:
Customer express and implied requirement is met fully.
MANAGEMENT:
Executive are fully committed
2. Management by fact
4. Continuous improvement
5. Strong leadership
FOUR CS OF TQM
1. Commitment 2. Comptence
In the company, they already have implemented TQM so through this study, I measured
the degree of implementation in the organization and what are the factor that are
affected the commitment lever and to check how much they are satisfaction with the
TQM implement.
For this purpose, I have made the questionnaire which consisting of multiple-choice
questions. I have collected the data from them and after that I have tabulated them and
interpreted them and give the recommendation.
Several articles have been published in different journals , magazines and newspaper such
as HARVARD BUSINESS REVIEW,THE ECONOMIC TIMES,VIKALPA etc.
But the effect of TQM on employees commitment in the company has so far not
undertaken. This project has been done first time in the company.
LIMITATION
~Employees of the organization may hide the fact.
drawn.
RESEARCH METHODOLOGY
The universe is the employee working at mill. I have selected 100 employee 40
FROM THE STAFF,60 FROM THE WORKER for the survey.
RESEARCH DESIGN
ANALYSIS PATTERN
Data collection:
This data is primary data, which I have been collected with the help of
Most of the staff member and worker feel that organization is quality conscious toward
the employees. This also increases their commitment toward the work and toward the
organization.
Some of the employees feel that thy have proper information about the policies, practices
followed in the organization. But some of employees feel that there is no proper
communication.
Most of the facts related with the organization are hided by the management from the
employees.
Most of the employees feel that they dont get rewarded for their good performance.
Most of the staffs member feel that their performance is properly measured in the
organization.
RECCOMENDATIONS
The suggestions I have given for the betterment are explained below:
Role clarity of each position should be defined and based on that individuals can
plan their work accordingly.
There are regular review and comparison of current & past performance to detect
gradual deterioration in the strategy.
YES NO
Does the organization have the certification of ISO 9000?
YES NO
YES NO
YES NO
YES NO
Do you think the organization used bench marking, if any, please tell me the
name of the benchmark organization?
If yes, then
Org. Area
a.
b.
YES NO dontknow
YES NO
Does the organization have the certification of ISO 14000 or any other, if
any please mention?
YES NO dontknow
Are you practicing the six sigma for the error control?
YES NO dontknow
Employees are kept updated with changes in job skills & job designs?
Not at all
Yes No Sometimes
Yes No Sometimes
What types of relations are you having with your superior, peers and
subordinates?
All above
Do you feel that you can get ahead in the org. if you make an effort?
Yes No Sometimes
Yes No Sometimes
Yes No Sometimes
Do you find that your job makes the best use of your abilities?
Management [TQM]
(Micro Analysis)
A. Yes
B. No
Staff % Workers %
A 87 65
B 13 25
This shows that about 87% staff and 65% worker agreed that organization is quality
conscious toward employees.
Does the organization have the certification of ISO 9000?
A. Yes
B. No
Staff % Worker %
A. 100 67
B. 0 33
This shows that 100% staff and 70% worker said that the organization have the
certification of ISO 9000.
A. Yes
B. No
Staff % Worker %
A. 80 58
B. 20 42
This shows that 80% staff& app.65% worker think that organization
providing quality assurance system &operation.
Does the organization have the quality circle?
A. Yes
B. No
Staff % Worker %
A. 87 46
B. 13 54
It shows that app.90% staff & 46% worker agreed with the statement . 54%
workers said they dont know about this.
A. Below 10 B.Above 10
Staff % Worker%
A. 22 36
B. 54 28
C. 14 22
D. 10 14
It shows that about 54% staff says there are above 10 member in the quality
circle.
A. Weekly B. Biweekly
C. Monthly D. Yearly
Staff % Worker%
A. 17 35
B. 57 42
C. 26 23
D. 0 0
It shows that app.60 % staff & 42% worker says organization have the
information?
A. Yes
B. No
Staff % Worker %
A. 60 14
B. 40 86
they know about the agenda of the information but 86% worker say they
A. Yes
B. No
C. Cant say
Staff % Worker %
A. 85 26
B. 10 24
C 5 50
Above shows that 85% staff &26% worker says that organization is going for quality
audit but 50% worker says they dont know about the quality audit.
A. Yes
B. No
C. Cant say
Staff % Worker %
A. 95 15
B. 0 31
C 5 54
Above shows that 95% staff says that organization have quality information system
A. Yes
B. No
C. Cant say
Staff % Worker %
A. 69 55
B. 11 11
C 20 34
About 70 % staff & 55% worker says that organization regularly updated.
D. Yes
E. No
F. Cant say
Staff % Worker %
A. 30 8
B. 25 0
C 45 92
This shows that 95%staff says that organization have quality information system but 54%
A. Yes
B. No
C. Dont know
Staff % Worker %
A. 70 3
B. 13 0
C 17 97
Above table shows that 70%staff agreed with the statement.but 97% worker say they
A. Yes
B. No
Staff % Worker %
A. 90 26
B. 10 74
It shows that about the 90% staff and 26% worker says they are practicing
A. Yes
B. No
C. Dont know
Staff % Worker %
A. 100 53
B. 0 16
C 0 31
It shows that all of the respondent of staff & most of the worker category
B. Strongly disagree
C. Dont know
D. Agree
E. Disagree
Staff % Workers %
A 18 7
B 12 30
C 20 46
D 30 7
E 20 10
It shows that about 50% of the respondent are agree with the statement but
A. Strongly agree
B. Strongly disagree
C. Dont know
D. Agree
E. Disagree
Staff % Workers %
A 22 7
B 5 13
C 25 40
D 45 13
E 3 27
It shows that about 50% staff of the respondent are agree with the statement
Employees are keep updating with change in the job skill & job design?
A. Strongly agree
B. Strongly disagree
C. Dont know
D. Agree
E. Disagree
Staff % Workers %
A 10 3
B 5 15
C 10 13
D 55 45
E 20 24
It shows that app. 70% respondents are agree with the statement .
D.Agree E. Disagree
Staff % Workers %
A 15 2
B 5 21
C 0 7
D 70 40
E 10 30
Above table shows that app. 80% respondents of the staff and 45% from
worker said that there are proper feedback system. are agree with the
statement .
Does the organization provide right environment to apply knowledge
D. Agree E. Disagree
Staff % Workers %
A 5 5
B 75 28
C 10 13
D 7 46
E 3 8
Above table shows that 75% staff and 50% from worker said that
organization provide the right environment to apply knowledge to the job
Proper feedback system. are agree with the statement .
A. Yes
B. No
C. Cant say
Staff % Workers %
A 80 58
B 5 36
C 15 8
It shows that 80% staff&58% worker agreed with the statement.
organization?
A. Yes
B. No
C. Some times
Staff % Worker %
A. 55 47
B. 20 40
C. 25 13
It shows that the employees of the staff category are more satisfied with
the rules and policies of the organization then employees from the
workers category.
What type of relations are you having with your superiors, peers
and subordinates?
A. Good
B. Average
C. Poor
Staff Workers
A. 90 34
B. 10 50
C. 0 16
It shows that most of the employees from the staff category are having
good relationships with their superiors. But most of the workers are
Workers
A. 10
B. 27
C. 18
D. 45
It shows that most of the worker take misbehaviour from their superior.
Do you feel that you can get ahead in the organization if you make efforts?
A. Yes B. No C. Sometimes
Staff Workers
A. 45 24
B. 25 72
C. 30 4
This shows that most of the workers feels that they cant get ahead in the
organization if they work hard but the attitude of employees of staff is just
opposite.
A. Yes
B. No
C. Sometimes
Staff % Workers %
A. 30 22
B. 65 68
C. 5 10
This shows that most of the staff members or workers have not get
organization?
A. Yes
B. No
C. Sometimes
Staff % Workers %
A. 45 26
B. 40 67
C. 15 7
Do you find that your job makes the best use of your abilities?
(For Managers)
A. Yes
B. No
C. Sometimes
Staff
A. 55
B. 30
C. 15
It shows that most of the staff members are feels that their job makes
Objective of Project Report : The main objective of the Project Report is Find the
Ratio Analysis of company. And sub objectives of this report is understand the Meaning
of Ratio, Pure Ratio or Simple Ratio, Advantages of Ratio Analysis, Limitations of
Ratio Analysis, classification of Ratio, Liquidity Ratio, Profitability Ratio or Income
Ratio, Activity & Turnover Ratio, Return on Capital Employed
RATIO ANALYSIS
4. Helpful in Forecasting.
7. Effective Control.
CLASSIFICATION OF RATIO
A. Liquidity Ratio
a. Current Ratio
c. Operating Ratio
d. Expenses Ratio
LIQUIDITY RATIO
(A) Liquidity Ratio:- It refers to the ability of the firm to meet its current
liabilities. The liquidity ratio, therefore, are also called Short-term Solvency
Ratio. These ratio are used to assess the short-term financial position of the
concern. They indicate the firms ability to meet its current obligation out of
current resources.
a. Current Ratio
Formula:
Formula:
(B) Leverage or Capital Structure Ratio :- This ratio disclose the firms
ability to meet the interest costs regularly and Long term indebtedness at
maturity.
Formula:
Long Term Loans:- These refer to long term liabilities which mature after
one year. These include Debentures, Mortgage Loan, Bank Loan, Loan from
Financial institutions and Public Deposits etc.
If the debt equity ratio is more than that, it shows a rather risky financial
position from the long-term point of view, as it indicates that more and more
funds invested in the business are provided by long-term lenders.
The lower this ratio, the better it is for long-term lenders because they are
more secure in that case. Lower than 2:1 debt equity ratio provides sufficient
protection to long-term lenders.
b. Debt to Total Funds Ratio : This Ratio is a variation of the debt equity
ratio and gives the same indication as the debt equity ratio. In the ratio, debt
is expressed in relation to total funds, i.e., both equity and debt.
Formula:
Formula:
If the ratio is low it indicates that long-term loans are less secured and
they face the risk of losing their money.
Formula:
Fixed Asset to Proprietors Fund Ratio = Fixed Assets/Proprietors Funds (i.e., Net
Worth)
Formula:
Capital Gearing Ratio = Equity Share Capital+ Reserves + P&L Balance/ Fixed cost
Bearing Capital
Significance:- If the amount of fixed cost bearing capital is more than the
equity share capital including reserves an undistributed profits), it will be
called high capital gearing and if it is less, it will be called low capital
gearing.
The high gearing will be beneficial to equity shareholders when the rate
of interest/dividend payable on fixed cost bearing capital is lower than
the rate of return on investment in business.
Formula:
Interest Coverage Ratio = Net Profit before charging interest and tax / Fixed Interest
Charges
Significance :- This ratio indicates how many times the interest charges are
covered by the profits available to pay interest charges.
This higher the ratio, more secure the lenders is in respect of payment of
interest regularly. If profit just equals interest, it is an unsafe position for the
lender as well as for the company also , as nothing will be left for
shareholders.
(C) Activity Ratio or Turnover Ratio :- These ratio are calculated on the bases
of cost of sales or sales, therefore, these ratio are also called as Turnover
Ratio. Turnover indicates the speed or number of times the capital employed
has been rotated in the process of doing business. Higher turnover ratio indicates
the better use of capital or resources and in turn lead to higher profitability.
a. Stock Turnover Ratio:- This ratio indicates the relationship between the
cost of goods during the year and average stock kept during that year.
Formula:
Significance:- This ratio indicates whether stock has been used or not. It
shows the speed with which the stock is rotated into sales or the number of
times the stock is turned into sales during the year.
The higher the ratio, the better it is, since it indicates that stock is selling
quickly. In a business where stock turnover ratio is high, goods can be sold
at a low margin of profit and even than the profitability may be quit high.
Formula:
Debtor Turnover Ratio = Net Credit Sales / Average Debtors + Average B/R
While calculating this ratio, provision for bad and doubtful debts is not
deducted from the debtors, so that it may not give a false impression that
debtors are collected quickly.
Significance :- This ratio indicates the speed with which the amount is
collected from debtors. The higher the ratio, the better it is, since it indicates
that amount from debtors is being collected more quickly. The more quickly
the debtors pay, the less the risk from bad- debts, and so the lower the
expenses of collection and increase in the liquidity of the firm.
By comparing the debtors turnover ratio of the current year with the
previous year, it may be assessed whether the sales policy of the
management is efficient or not.
c. Average Collection Period :- This ratio indicates the time with in which
the amount is collected from debtors and bills receivables.
Formula:
Average Collection Period = Debtors + Bills Receivable / Credit Sales per day
Here, Credit Sales per day = Net Credit Sales of the year / 365
Second Formula :-
Significance :- This ratio shows the time in which the customers are paying
for credit sales. A higher debt collection period is thus, an indicates of the
inefficiency and negligency on the part of management. On the other hand,
if there is decrease in debt collection period, it indicates prompt payment by
debtors which reduces the chance of bad debts.
Formula:-
Creditors Turnover Ratio = Net credit Purchases / Average Creditors + Average B/P
Note :- If the amount of credit purchase is not given in the question, the ratio
may be calculated on the bases of total purchase.
Significance :- This ratio indicates the speed with which the amount is being
paid to creditors. The higher the ratio, the better it is, since it will indicate
that the creditors are being paid more quickly which increases the credit
worthiness of the firm.
d. Average Payment Period :- This ratio indicates the period which is
normally taken by the firm to make payment to its creditors.
Formula:-
Significance :- The lower the ratio, the better it is, because a shorter
payment period implies that the creditors are being paid rapidly.
d. Fixed Assets Turnover Ratio :- This ratio reveals how efficiently the
fixed assets are being utilized.
Formula:-
Fixed Assets Turnover Ratio = Cost of Goods Sold/ Net Fixed Assets
Formula :-
A high working capital turnover ratio shows efficient use of working capital
and quick turnover of current assets like stock and debtors.
ii. What is the rate of gross profit and net profit on sales?
a) Gross Profit Ratio : This ratio shows the relationship between gross
profit and sales.
Formula :
b) Net Profit Ratio:- This ratio shows the relationship between net profit and
sales. It may be calculated by two methods:
Formula:
Significance :- This ratio measures the rate of net profit earned on sales. It
helps in determining the overall efficiency of the business operations. An
increase in the ratio over the previous year shows improvement in the
overall efficiency and profitability of the business.
Formula:
Operating Ratio = Cost of Goods Sold + Operating Expenses/ Net Sales *100
Operating Ratio and Operating Net Profit Ratio are inter-related. Total of
both these ratios will be 100.
(d) Expenses Ratio:- These ratio indicate the relationship between expenses
and sales. Although the operating ratio reveals the ratio of total operating
expenses in relation to sales but some of the expenses include in operating
ratio may be increasing while some may be decreasing. Hence, specific
expenses ratio are computed by dividing each type of expense with the net
sales to analyse the causes of variation in each type of expense.
The ratio may be calculated as :
(b) Direct Labour cost Ratio = Direct labour cost / Net sales*100
(a), (b) and (c) mentioned above will be jointly called cost of goods sold
ratio.
Net Sales*100
Significance:- Various expenses ratio when compared with the same ratios
of the previous year give a very important indication whether these expenses
in relation to sales are increasing, decreasing or remain stationary. If the
expenses ratio is lower, the profitability will be greater and if the expenses
ratio is higher, the profitability will be lower.
These ratio reflect the true capacity of the resources employed in the
enterprise. Sometimes the profitability ratio based on sales are high whereas
profitability ratio based on investment are low. Since the capital is employed
to earn profit, these ratios are the real measure of the success of the business
and managerial efficiency.
Formula:
Even the performance of two dissimilar firms may be compared with the
help of this ratio.
The ratio can be used to judge the borrowing policy of the enterprise.
This ratio helps in affecting the necessary changes in the financial policies
of the firm.
With the help of this ratio, shareholders can also find out whether they will
receive regular and higher dividend or not.
For calculating this ratio Net Profit after Interest and Tax is divided by total
shareholders funds.
Formula:
Return on Total Shareholders Funds = Net Profit after Interest and Tax / Total
Shareholders Funds
Significance:- This ratio reveals how profitably the proprietors funds have
been utilized by the firm. A comparison of this ratio with that of similar
firms will throw light on the relative profitability and strength of the firm.
(b) Return on Equity Shareholders Funds:-
Formula:
Return on Equity Shareholders Funds = Net Profit (after int., tax & preference dividend)
/ Equity Shareholders Funds *100
RATIO ANALYSIS
(c) Earning Per Share (E.P.S.) :- This ratio measure the profit available to
the equity shareholders on a per share basis. All profit left after payment of
tax and preference dividend are available to equity shareholders.
Formula:
(d) Dividend Per Share (D.P.S.):- Profits remaining after payment of tax and
preference dividend are available to equity shareholders.
But of these are not distributed among them as dividend . Out of these
profits is retained in the business and the remaining is distributed among
equity shareholders as dividend. D.P.S. is the dividend distributed to equity
shareholders divided by the number of equity shares.
Formula:
Formula:
OR
(g) Price Earning (P.E.) Ratio:- Price earning ratio is the ratio between
market price per equity share & earnings per share. The ratio
is calculated to make an estimate of appreciation in the value of
a share of a company & is widely used by investors to decide
whether or not to buy shares in a particular company.
Home
Capital required for a business can be classified under two main categories via,
1) Fixed Capital
2) Working Capital
Every business needs funds for two purposes for its establishment and to carry out
its day- to-day operations. Long terms funds are required to create production facilities
through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments
in these assets represent that part of firms capital which is blocked on permanent or fixed
basis and is called fixed capital. Funds are also needed for short-term purposes for the
purchase of raw material, payment of wages and other day to- day expenses etc.
The gross working capital is the capital invested in the total current assets of the
enterprises current assets are those
Assets which can convert in to cash within a short period normally one accounting
year.
2) Bills receivables
3) Sundry debtors
a. Raw material
b. Work in process
d. Finished goods
7. Prepaid expenses
8. Accrued incomes.
9. Marketable securities.
In a narrow sense, the term working capital refers to the net working. Net
working capital is the excess of current assets over current liability, or, say:
Net working capital can be positive or negative. When the current assets
exceeds the current liabilities are more than the current assets. Current liabilities
are those liabilities, which are intended to be paid in the ordinary course of
business within a short period of normally one accounting year out of the
current assts or the income business.
3. Dividends payable.
4. Bank overdraft.
6. Bills payable.
7. Sundry creditors.
The gross working capital concept is financial or going concern concept whereas net
working capital is an accounting concept of working capital. Both the concepts have their
own merits.
The gross concept is sometimes preferred to the concept of working capital for the
following reasons:
3. It take into consideration of the fact every increase in the funds of the
enterprise would increase its working capital.
4. This concept is also useful in determining the rate of return on
investments in working capital. The net working capital concept,
however, is also important for following reasons:
Temporary or variable working capital is the amount of working capital which is required
to meet the seasonal demands and some special exigencies. Variable working capital can
further be classified as seasonal working capital and special working capital. The capital
required to meet the seasonal need of the enterprise is called seasonal working capital.
Special working capital is that part of working capital which is required to meet special
exigencies such as launching of extensive marketing for conducting research, etc.
Temporary working capital differs from permanent working capital in the sense that is
required for short periods and cannot be permanently employed gainfully in the business.
Easy loans: Adequate working capital leads to high solvency and credit
standing can arrange loans from banks and other on easy and favorable terms.
Ability To Face Crises: A concern can face the situation during the
depression.
Every business concern should have adequate amount of working capital to run its
business operations. It should have neither redundant or excess working capital nor
inadequate nor shortages of working capital. Both excess as well as short working
capital positions are bad for any business. However, it is the inadequate working
capital which is more dangerous from the point of view of the firm.
CAPITAL
Every business needs some amounts of working capital. The need for working capital
arises due to the time gap between production and realization of cash from sales. There is
an operating cycle involved in sales and realization of cash. There are time gaps in
purchase of raw material and production; production and sales; and realization of cash.
For studying the need of working capital in a business, one has to study the business
under varying circumstances such as a new concern requires a lot of funds to meet its
initial requirements such as promotion and formation etc. These expenses are called
preliminary expenses and are capitalized. The amount needed for working capital
depends upon the size of the company and ambitions of its promoters. Greater the
size of the business unit, generally larger will be the requirements of the working
capital.
The requirement of the working capital goes on increasing with the growth and
expensing of the business till it gains maturity. At maturity the amount of working
capital required is called normal working capital.
There are others factors also influence the need of working capital in a business.
REQUIREMENTS
DEBTORS
12. PRICE LEVEL CHANGES: Changes in the price level also affect the
working capital requirements. Generally rise in prices leads to increase in
working capital.
Operating efficiency.
Management ability.
Irregularities of supply.
Import policy.
Asset structure.
Importance of labor.
As we know working capital is the life blood and the centre of a business.
Adequate amount of working capital is very much essential for the smooth
running of the business. And the most important part is the efficient management
of working capital in right time. The liquidity position of the firm is totally
effected by the management of working capital. So, a study of changes in the uses
and sources of working capital is necessary to evaluate the efficiency with which
the working capital is employed in a business. This involves the need of working
capital analysis.
1. Ratio analysis.
3. Budgeting.
1. RATIO ANALYSIS
1. Current ratio.
2. Quick ratio
3. Absolute liquid ratio
4. Inventory turnover.
5. Receivables turnover.
Fund flow analysis is a technical device designated to the study the source from
which additional funds were derived and the use to which these sources were put.
The fund flow analysis consists of:
TEST OF LIQUIDITY
The short term creditors of a company such as suppliers of goods of credit and
commercial banks short-term loans are primarily interested to know the ability
of a firm to meet its obligations in time. The short term obligations of a firm can
be met in time only when it is having sufficient liquid assets. So to with the
confidence of investors, creditors, the smooth functioning of the firm and the
efficient use of fixed assets the liquid position of the firm must be strong. But a
very high degree of liquidity of the firm being tied up in current assets.
Therefore, it is important proper balance in regard to the liquidity of the firm.
Two types of ratios can be calculated for measuring short-term financial
position or short-term solvency position of the firm.
1. Liquidity ratios.
Liquidity refers to the ability of a firm to meet its current obligations as and
when these become due. The short-term obligations are met by realizing
amounts from current, floating or circulating assts. The current assets should
either be liquid or near about liquidity. These should be convertible in cash for
paying obligations of short-term nature. The sufficiency or insufficiency of
current assets should be assessed by comparing them with short-term liabilities.
If current assets can pay off the current liabilities then the liquidity position is
satisfactory. On the other hand, if the current liabilities cannot be met out of the
current assets then the liquidity position is bad. To measure the liquidity of a
firm, the following ratios can be calculated:
1. CURRENT RATIO
2. QUICK RATIO
1. CURRENT RATIO
CURRENT LIABILITES
2) CURRENT LIABILITES
A relatively high current ratio is an indication that the firm is liquid and has the
ability to pay its current obligations in time. On the hand a low current ratio
represents that the liquidity position of the firm is not good and the firm shall
not be able to pay its current liabilities in time. A ratio equal or near to the rule
of thumb of 2:1 i.e. current assets double the current liabilities is considered to
be satisfactory.
(Rupees in crore)
e.g.
Interpretation:-
As we know that ideal current ratio for any firm is 2:1. If we see the current
ratio of the company for last three years it has increased from 2006 to 2008. The
current ratio of company is more than the ideal ratio. This depicts that
companys liquidity position is sound. Its current assets are more than its current
liabilities.
2. QUICK RATIO
Quick ratio is a more rigorous test of liquidity than current ratio. Quick ratio
may be defined as the relationship between quick/liquid assets and current or
liquid liabilities. An asset is said to be liquid if it can be converted into cash
with a short period without loss of value. It measures the firms capacity to pay
off current obligations immediately.
CURRENT LIABILITES
1) Marketable Securities
3) Debtors.
A high ratio is an indication that the firm is liquid and has the ability to meet its
current liabilities in time and on the other hand a low quick ratio represents that
the firms liquidity position is not good.
Interpretation :
A quick ratio is an indication that the firm is liquid and has the ability to
meet its current liabilities in time. The ideal quick ratio is 1:1. Companys
quick ratio is more than ideal ratio. This shows company has no liquidity
problem.
Although receivables, debtors and bills receivable are generally more liquid
than inventories, yet there may be doubts regarding their realization into cash
immediately or in time. So absolute liquid ratio should be calculated together
with current ratio and acid test ratio so as to exclude even receivables from the
current assets and find out the absolute liquid assets. Absolute Liquid Assets
includes :
CURRENT LIABILITES
Interpretation :
These ratio shows that company carries a small amount of cash. But there is
nothing to be worried about the lack of cash because company has reserve,
borrowing power & long term investment. In India, firms have credit limits
sanctioned from banks and can easily draw cash.
Funds are invested in various assets in business to make sales and earn
profits. The efficiency with which assets are managed directly affects the
volume of sales. The better the management of assets, large is the amount of
sales and profits. Current assets movement ratios measure the efficiency with
which a firm manages its resources. These ratios are called turnover ratios
because they indicate the speed with which assets are converted or turned over
into sales. Depending upon the purpose, a number of turnover ratios can be
calculated. These are :
The current ratio and quick ratio give misleading results if current assets include
high amount of debtors due to slow credit collections and moreover if the assets
include high amount of slow moving inventories. As both the ratios ignore the
movement of current assets, it is important to calculate the turnover ratio.
AVERAGE INVENTORY
Inventory turnover ratio measures the speed with which the stock is
converted into sales. Usually a high inventory ratio indicates an efficient
management of inventory because more frequently the stocks are sold ; the
lesser amount of money is required to finance the inventory. Where as low
inventory turnover ratio indicates the inefficient management of inventory.
A low inventory turnover implies over investment in inventories, dull
business, poor quality of goods, stock accumulations and slow moving
goods and low profits as compared to total investment.
(Rupees in Crore)
Interpretation :
These ratio shows how rapidly the inventory is turning into receivable
through sales. In 2007 the company has high inventory turnover ratio but in
2008 it has reduced to 1.75 times. This shows that the companys inventory
management technique is less efficient as compare to last year.
e.g.
Interpretation :
Inventory conversion period shows that how many days inventories takes to
convert from raw material to finished goods. In the company inventory
conversion period is decreasing. This shows the efficiency of management to
convert the inventory into cash.
A concern may sell its goods on cash as well as on credit to increase its
sales and a liberal credit policy may result in tying up substantial funds of a firm
in the form of trade debtors. Trade debtors are expected to be converted into
cash within a short period and are included in current assets. So liquidity
position of a concern also depends upon the quality of trade debtors. Two types
of ratio can be calculated to evaluate the quality of debtors.
AVERAGE DEBTORS
Debtors velocity indicates the number of times the debtors are turned over
during a year. Generally higher the value of debtors turnover ratio the more
efficient is the management of debtors/sales or more liquid are the debtors.
Whereas a low debtors turnover ratio indicates poor management of
debtors/sales and less liquid debtors. This ratio should be compared with ratios
of other firms doing the same business and a trend may be found to make a
better interpretation of the ratio.
e.g.
Interpretation :
This ratio indicates the speed with which debtors are being converted or
turnover into sales. The higher the values or turnover into sales. The higher the
values of debtors turnover, the more efficient is the management of credit. But
in the company the debtor turnover ratio is decreasing year to year. This shows
that company is not utilizing its debtors efficiency. Now their credit policy
become liberal as compare to previous year.
The average collection period ratio represents the average number of days
for which a firm has to wait before its receivables are converted into cash. It
measures the quality of debtors. Generally, shorter the average collection period
the better is the quality of debtors as a short collection period implies quick
payment by debtors and vice-versa.
Interpretation :
Networking Capital
e.g.
Interpretation :
This ratio indicates low much net working capital requires for sales.
In 2008, the reciprocal of this ratio (1/1.64 = .609) shows that for sales of Rs. 1
the company requires 60 paisa as working capital. Thus this ratio is helpful to
forecast the working capital requirement on the basis of sale.
INVENTORIES
(Rs. in Crores)
Interpretation :
Inventories is a major part of current assets. If any company wants to
manage its working capital efficiency, it has to manage its inventories
efficiently. The graph shows that inventory in 2005-2006 is 45%, in 2006-2007
is 43% and in 2007-2008 is 54% of their current assets. The company should try
to reduce the inventory upto 10% or 20% of current assets.
(Rs. in Crores)
Interpretation :
DEBTORS :
(Rs. in Crores)
Interpretation :
CURRENT ASSETS :
(Rs. in Crores)
Interpretation :
This graph shows that there is 64% increase in current assets in 2008. This
increase is arise because there is approx. 50% increase in inventories. Increase
in current assets shows the liquidity soundness of company.
CURRENT LIABILITY :
(Rs. in Crores)
Interpretation :
(Rs. in Crores)
Year 2005-2006 2006-2007 2007-2008
Net Working Capital 53.87 62.53 103.09
Interpretation :
RESEARCH METHODOLOGY
The methodology, I have adopted for my study is the various tools, which basically
analyze critically financial position of to the organization:
V. TREND ANALYSIS
The above parameters are used for critical analysis of financial position. With the
evaluation of each component, the financial position from different angles is tried to be
presented in well and systematic manner. By critical analysis with the help of different
tools, it becomes clear how the financial manager handles the finance matters in
profitable manner in the critical challenging atmosphere, the recommendation are made
which would suggest the organization in formulation of a healthy and strong position
financially with proper management system.
I sincerely hope, through the evaluation of various percentage, ratios and
comparative analysis, the organization would be able to conquer its in efficiencies
and makes the desired changes.
FINANCIAL STATEMENTS:
2. To provide other needed information about charges in such economic resources and
obligation.
4. To provide financial information that assets in estimating the learning potential of the
business.
Though financial statements are relevant and useful for a concern, still they do not
present a final picture a final picture of a concern. The utility of these statements is
dependent upon a number of factors. The analysis and interpretation of these statements
must be done carefully otherwise misleading conclusion may be drawn.
Financial statements suffer from the following limitations: -
1. Financial statements do not given a final picture of the concern. The data given in these
statements is only approximate. The actual value can only be determined when the
business is sold or liquidated.
2. Financial statements have been prepared for different accounting periods, generally
one year, during the life of a concern. The costs and incomes are apportioned to different
periods with a view to determine profits etc. The allocation of expenses and income
depends upon the personal judgment of the accountant. The existence of contingent assets
and liabilities also make the statements imprecise. So financial statement are at the most
interim reports rather than the final picture of the firm.
3. The financial statements are expressed in monetary value, so they appear to give final
and accurate position. The value of fixed assets in the balance sheet neither represent the
value for which fixed assets can be sold nor the amount which will be required to replace
these assets. The balance sheet is prepared on the presumption of a going concern. The
concern is expected to continue in future. So fixed assets are shown at cost less
accumulated deprecation. Moreover, there are certain assets in the balance sheet which
will realize nothing at the time of liquidation but they are shown in the balance sheets.
4. The financial statements are prepared on the basis of historical costs Or original costs.
The value of assets decreases with the passage of time current price changes are not taken
into account. The statement are not prepared with the keeping in view the economic
conditions. the balance sheet loses the significance of being an index of current
economics realities. Similarly, the profitability shown by the income statements may be
represent the earning capacity of the concern.
5. There are certain factors which have a bearing on the financial position and operating
result of the business but they do not become a part of these statements because they
cannot be measured in monetary terms. The basic limitation of the traditional financial
statements comprising the balance sheet, profit & loss A/c is that they do not give all the
information regarding the financial operation of the firm. Nevertheless, they provide
some extremely useful information to the extent the balance sheet mirrors the financial
position on a particular data in lines of the structure of assets, liabilities etc. and the profit
& loss A/c shows the result of operation during a certain period in terms revenue obtained
and cost incurred during the year. Thus, the financial position and operation of the firm.
CALCULATIONS OF RATIOS
Ratios are relationship expressed in mathematical terms between figures, which are
connected with each other in some manner.
CLASSIFICATION OF RATIOS
The traditional classification has been on the basis of the financial statement to which the
determination of ratios belongs.
These are:-
Composite ratios
Project Description :
Title : Working Capital Management of ____________
Pages : 73
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TABLE OF CONTENTS
RESEARCH METHODOLOGY
FINDINGS
RECOMMENDATIONS
LIMITATIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
Primary Objective:
2. Dissatisfaction
After employees have been selected for various positions in an organization, training
them for the specific tasks to which they have been assigned assumes great importance. It
is true in many organizations that before an employee is fitted into a harmonious working
relationship with other employees, he is given adequate training. Training is the act of
increasing the knowledge and skills of an employee for performing a particular job. The
major outcome of training is learning. A trainee learns new habits, refined skills and
useful knowledge during the training that helps him improve performance. Training
enables an employee to do his present job more efficiently and prepare himself for a
higher-level job. The essential features of training may be stated thus:
Increases knowledge and skills for doing a particular job; it bridges the gap
between job needs and employee skills, knowledge and behaviors
Focuses attention on the current job; it is job specific and addresses particular
performance deficits or problems
Training is necessary when a person moves from one job to another (transfer). After
training, the' employee can change jobs quickly, improve his performance levels and
achieve career goals comfortably
Training is necessary to make employees mobile and versatile. They can be placed
on various jobs depending on organizational needs.
Training is needed to bridge the gap between what the employee has and what the
job demands.
Training is needed to make employees more productive and useful in the long-run.
Training is needed for employees to gain acceptance from peers (learning a job quickly
and being able to pull their own weight is one of the best ways for them to gain
acceptance).
Importance
Training offers innumerable benefits to both employees and employers. It makes the
employee more productive and more useful to an organization. The importance of
training can be studied under the following heads:
Trained workers can work more efficiently. They use machines, tools, and materials in a
proper way. Wastage is thus eliminated to a large extent.
There will be fewer accidents. Training improves the knowledge of employees regarding
the use of machines and equipment. Hence, trained workers need not be put under close
supervision, as they know how to handle operations properly.
Trained workers can show superior performance. They can turn out better performance.
They can turn out better quality goods by putting the materials, tools and equipment to
good use.
Training makes employees more loyal to an organization. They will be less inclined to
leave the unit where there are growth opportunities
Training makes an employee more useful to a firm. Hence, he will find employment more
easily.
Training makes employees more efficient and effective. By combining materials, tools
and equipment in a right way, they can produce more with minimum effort.
Training enables employees to secure promotions easily. They can realise their career
goals comfortably.
Training helps an employee to move from one organization to another easily. He can be
more mobile and pursue career goals actively.
Employees can avoid mistakes, accidents on the job. They can handle jobs with
confidence. They will be more satisfied on their jobs. Their morale would be high.
Thus, training can contribute to higher production, fewer mistakes, greater job
satisfaction and lower labour turnover. Also, it can enable employees to cope with
organizational, social and technological change. Effective training is an invaluable
investment in the human resources of an organization.
Training is essential for job success. It can lead to higher production, fewer mistakes,
greater job satisfaction and lower turnover. These benefits accrue to both the trainee and
the organization, if managers understand the principles behind the training process. To
this end, training efforts must invariably follow certain learning-oriented guidelines.
Modelling
Modeling is simply copying someone else's behavior. Passive classroom learning does
not leave any room for modeling. If we want to change people, it would be a good idea to
have videotapes of people showing the desired behavior. The selected model should
provide the right kind of behavior to be copied by others. A great deal of human
behaviour is learned by modelling others. Children learn by modelling parents and older
children, they are quite comfortable with the process by the time they grow up. As
experts put it. "managers tend to manage as they were managed"
Motivation
For learning to take place, intention to learn is important. When the employee is
motivated, he pays attention to what is being said, done and presented. Motivation to
learn is influenced by the answers to questions such as: How important is my job to me?
How important is the information? Will learning help me progress in the company? etc.
People learn more quickly when the material is important and relevant to them. Learning
is usually quicker and long-lasting when the learner participates actively. Most people,
for example, never forget how to ride a bicycle because they took an active part in the
learning process.
Reinforcement
Feedback
People learn best if reinforcement is given as soon as possible after training. Every
employee wants to know what is expected of him and how well he is doing. If he is off
the track, somebody must put him back on the rails. The errors in such cases must be
rectified immediately. The trainee after learning the right behaviour is motivated to do
things in a 'right' way and earn the associated rewards. Positive feedback (showing the
trainee the right way of doing things) is to be preferred to negative feedback (telling the
trainee that he is not correct) when we want to change behaviour.
Spaced Practice
Learning takes place easily if the practice sessions are spread over a period of time. New
employees learn better if the orientation programme is spread over a two or three day
period, instead of covering it all in one day. For memorizing tasks, 'massed' practice is
usually more effective. Imagine the way schools ask the kids to say the Lord's prayer
aloud. Can you memorise a long poem by learning only one line per day? You tend to
forget the beginning of the poem by the time you reach the last stanza. For 'acquiring'
skills as stated by Mathis and Jackson, spaced practice is usually the best. This
incremental approach to skill acquisition minimises the physical fatigue that deters
learning.
Whole Learning
The concept of whole learning suggests that employees learn better if the job information
is explained as an entire logical process, so that they can see how the various actions fit
together into the 'big picture'. A broad overview of what the trainee would be doing on the
job should be given top priority, if learning has to take place quickly. Research studies
have also indicated that it is more efficient to practice a whole task all at once rather than
trying to master the various components of the task at different intervals.
Active Practice
'Practice makes a man perfect': so said Bacon. To be a swimmer, you should plunge into
water instead of simply reading about swimming or looking at films of the worlds' best
swimmers. Learning is enhanced when trainees are provided ample opportunities to
repeat the task. For maximum benefit, practice sessions should be distributed over time.
Applicability of Training
Training should be as real as possible so that trainees can successfully transfer the new
knowledge to their jobs. The training situations should be set up so that trainees can
visualise - and identify with - the types of situations they can come across on the job.
Environment
Finally, environment plays a major role in training. It is natural that workers who are
exposed to training in comfortable environments with adequate, well spaced rest periods
are more likely to learn than employees whose training conditions are less than ideal.
Generally speaking, learning is very fast at the beginning. Thereafter, the pace of learning
slows down as opportunities for improvement taper off.
Areas of Training
The Areas of Training in which training is offered may be classified into the following
categories.
Knowledge
Here the trainee learns about a set of rules and regulations about the job, the staff and the
products or services offered by the company. The aim is to make the new employee fully
aware of what goes on inside and outside the company.
Technical Skills
The employee is taught a specific skill (e.g., operating a machine, handling computer
etc.) so that he can acquire that skill and contribute meaningfully.
Social Skills
The employee is made to learn about himself and others, and to develop a right mental
attitude towards the job, colleagues and the company. The principal focus is on teaching
the employee how to be a team member and get ahead.
Techniques
This involves the application of knowledge and skill to various on-the-job situations.
Types of Training
There are many approaches to training. We focus here on the types of training that are
commonly employed in present-day organisations.
Skills training: This type of training is most common in organisations. The process here
is fairly simple. The need for training in basic skills (such as reading, writing, computing,
speaking, listening, problem solving, managing oneself, knowing how to learn, working
as part of a team, leading others) is identified through assessment. Specific training
objectives are set and training content is developed to meet those objectives. Several
methods are available for imparting these basic skills in modern organisations (such as
lectures, apprenticeship, on-the-job, coaching etc.). Before employing these methods,
managers should:
explain how the training will help the trainees in their jobs.
Team Training: Team training generally covers two areas; content tasks and
group processes. Content tasks specify the team's goals such as cost control and
problem solving. Group processes reflect the way members function as a team - for
example how they interact with each other, how they sort out differences, how they
participate etc. Companies are investing heavy amounts, nowadays, in training new
employees to listen to each other and to cooperate. They are using outdoor
experiential training techniques to develop teamwork and team spirit among their
employees (such as scaling a mountain, preparing recipes for colleagues at a
restaurant, sailing through uncharted waters, crossing a jungle etc.). The training
basically throws light on (i) how members should communicate with each other (ii)
how they have to cooperate and get ahead (iii) how they should deal with conflict-
full situations (iv) how they should find their way, using collective wisdom and
experience to good advantage.
(a) Breaking away: In order to break away from restrictions, the trainee is expected to (i)
identify the dominant ideas influencing his own thinking (ii) define the boundaries within
which he is working (iii) bring the assumptions out into the open and challenge
everything
(b) Generate new ideas: To generate new ideas, the trainee should open up his mind;
look at the problem from all possible angles and list as many alternative approaches as
possible. The trainee should allow his mind to wander over alternatives freely. Expose
himself to new influences (people, articles, books, situations), switch over from one
perspective to another, -arrange cross fertilization of ideas with other people and use
analogies to spark off ideas.
(c) Delaying judgement: To promote creative thinking, the trainee should not try to kill
off ideas too quickly; they should be held back until he is able to generate as many ideas
as possible. He should allow ideas to grow a little. Brainstorming (getting a large number
of ideas from a group of people in a short time) often helps in generating as many ideas
as possible without pausing to evaluate them. It helps in releasing ideas, overcoming
inhibitions, cross fertilising ideas and getting away from patterned thinking.
The programme covers two things: (i) awareness building, which helps
employees appreciate the key benefits of diversity, and (ii) skill building, which
offers the knowledge, skills and abilities required for working with people having
varied backgrounds.
Literacy Training: Inability to write, speak and work well with others could
often come in the way of discharging duties, especially at the lower levels. Workers,
in such situations, may fail to understand safety messages, appreciate the
importance of sticking to rules, and commit avoidable mistakes. Functional
illiteracy (low skill level in a particular content area) may be a serious impediment
to a firm's productivity and competitiveness. Functional literacy programmes focus
on the basic skills required to perform a job adequately and capitalise on most
workers' motivation to get help in a particular area. Tutorial programmes, home
assignments, reading and writing exercises, simple mathematical tests, etc., are
generally used in all company in-house programmes meant to improve the literacy
levels of employees with weak reading, writing or arithmetic skills.
Training Methods
Training methods are usually classified by the location of instruction. On the job training
is provided when the workers are taught relevant knowledge, skills and abilities at the
actual workplace; off-the-job training, on the other hand, requires that trainees learn at a
location other than the real work spot. Some of the widely used training methods are
listed below.
The JIT method (developed during World War II) is a four-step instructional process
involving preparation, presentation, performance try out and follow up. It is used
primarily to teach workers how to do their current jobs. A trainer, supervisor or co-worker
acts as the coach. The four steps followed in the JIT methods are:
1. The trainee receives an overview of the job, its purpose and its desired
outcomes, with a clear focus on the relevance of training.
2. The trainer demonstrates the job in order to give the employee a model to
copy. The trainer shows a right way to handle the job.
Merits:
It is economical as it does not require any special settings. Also, mistakes can be
corrected immediately.
The trainee gains confidence quickly as he does the work himself in actual setting with
help from supervisor.
It is most suitable for unskilled and semi-skilled jobs where the job operations are
simple; easy to explain and demonstrate within a short span of time.
Demerits:
The trainee should be as good as the trainer if the trainer is not good, transference of
knowledge and skills will be poor.
While learning, trainee may damage equipment, waste materials, cause accidents
frequently,
Experienced workers cannot use the machinery while it is being used for training.
2. Coaching:
When to use coaching usefully? Coaching could be put to good use when:
an employee needs help with a new skill following a formal training programme.
following up
3. Mentoring :
Career functions: Career functions are those aspects of the relationship that
enhance career advancement. These include:
3. Coaching: Mentors help mentees to analyse how they are doing their work
and to define their aspirations. Here mentors offer practical advice on how to
accomplish objectives and gain recognition from others.
9. Friendship: Mentors offer practical help and support to mentees so that they can
indulge in mutually satisfying social interactions (with peers, subordinates,
bosses and customers)
4. Job Rotation :
This kind of training involves the movement of trainee from one job to another. This
helps him to have a general understanding of how the organisation functions. The
purpose of job rotation is to provide trainees with a larger organisational perspective and
a greater understanding of different functional areas as well as a better sense of their own
career objectives and interests. Apart from relieving boredom, job rotation allows trainees
to build rapport with a wide range of individuals within the organisation, facilitating
future cooperation among departments. The cross-trained personnel offer a great amount
of flexibility for organisations when transfers, promotions or replacements become
inevitable.
Job rotation may pose several problems, especially when the trainees are rolled on
various jobs at frequent intervals. In such a case, trainees do not usually stay long enough
in any single phase of the operation to develop a high degree of expertise. For slow
learners, there is little room to integrate resources properly. Trainees can become
confused when they are exposed to rotating managers, with contrasting styles of
operation. Today's manager's commands may be replaced by another set from another
manager! Further, job rotation can be quite expensive. A substantial amount of
managerial time is lost when trainees change positions, because they must be acquainted
with different people and techniques in each department. Development costs can go up
and productivity is reduced by moving a trainee into a new position when his efficiency
levels begin to improve at the prior job. Inexperienced trainees may fail to handle new
tasks in an efficient way. Intelligent and aggressive trainees, on the offer hand, may find
the system to be thoroughly boring as they continue to perform more or less similar jobs
without any stretch, pull and challenge. To get the best results out of the system, it should
be tailored to the needs, interests and capabilities of the individual trainee, and not be a
standard sequence that all trainees undergo.
5 Apprenticeship Training
Most craft workers such as plumbers and carpenters are trained through formal
apprenticeship programmes. Apprentices are trainees who spend a prescribed amount of
time working with an experienced guide, coach or trainer. Assistantships and internships
are similar to apprenticeships because they also demand high levels of participation from
the trainee. An internship is a kind of on-the-job training that usually combines job
training with classroom instruction in trade schools, colleges or universities. Coaching, as
explained above, is similar to apprenticeship because the coach attempts to provide a
model for the trainee to copy. One important disadvantage ofthe apprenticeship methods
is the uniform period of training offered to trainees. People have different abilities and
learn at varied rates. Those who learn fast may quit the programme in frustration. Slow
learners may need additional training time. It is also likely that in these days of rapid
changes in technology, old skills may get outdated quickly. Trainees who spend years
learning specific skills may find, upon completion of their programmes, that the job skills
they acquired are no longer appropriate.
6 Committee Assignments
In this method, trainees are asked to solve an actual organisational problem. The trainees
have to work together and offer solution to the problem. Assigning talented employees to
important committees can give these employees a broadening experience and can help
them to understand the personalities, issues and processes governing the organisation. It
helps them to develop team spirit and work unitedly toward common goals. However,
managers should very well understand that committee assignments could become
notorious time wasting activities. The above on-the-job methods are cost effective.
Workers actually produce while they learn. Since immediat.e feedback is available, they
motivate trainees to observe and learn the right way of doing things. Very few problems
arise in the case of transfer of training because the employees learn in the actual work
environment where the skills that are learnt are actually used. On-the-job methods may
cause disruptions in production schedules. Experienced workers cannot use the facilities
that are used in training. Poor learners may damage machinery and equipment. Finally, if
the trainer does not possess teaching skills, there is very little benefit to the trainee.
Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance.
Since the trainee is not distracted by job requirements, he can focus his entire
concentration on learning the job rather than spending his time in performing it. There is
an opportunity for freedom of expression for the trainees. Off-the-job training methods
are as follows:
method, actual work conditions are simulated in a classroom. Material, files and
equipment - those that are used in actual job performance are also used in the training.
This type of training is commonly used for training personnel for clerical and semi-
skilled jobs. The duration of this training ranges from a few days to a few weeks. Theory
can be related to practice in this method.
c. Lecture method: The lecture is a traditional and direct method of instruction. The
instructor organizes the material and gives it to a group of trainees in the form of a talk.
To be effective, the lecture must motivate and create interest among the trainees. An
advantage of lecture method is that it is direct and can be used for a large group of
trainees. Thus, costs and time involved are reduced. The major limitation of the lecture
method is that it does not provide for transfer of training effectively.
The conference is, thus, a group-centered approach where there is a clarification of ideas,
communication of procedures and standards to the trainees. Those individuals who have a
general educational background and whatever specific skills are required such as typing,
shorthand, office equipment operation, filing, indexing, recording, etc. - may be provided
with specific instructions to handle their respective jobs.
e. Programmed instruction: This method has become popular in recent years. The
subject matter to be learned is presented in a series of carefully planned sequential
units. These units are arranged from simple to more complex levels of instruction.
The trainee goes through these units by answering questions or filling the blanks.
This method is, thus, expensive and time-consuming.
The specification of values forms a basis for evaluation. The basis of evaluation and the
mode of collection of information necessary for evaluation should be determined at the
planning stage.
The process of training evaluation has been defined as any attempt to obtain information
on the effects of training performance and to assess the value of training in the light of
that information. Evaluation helps in controlling and correcting the training programme.
Hamblin suggested five levels at which evaluation of training can take place, viz.,
reactions, learning, job behaviour, organisation and ultimate value.
2. Learning: Training programme, trainer's ability and trainee's ability are evaluated
on the basis of quantity of content learned and time in which it is learned and
learner's ability to use or apply the content learned.
3. Job behaviour: This evaluation includes the manner and extent to which the
trainee has applied his learning to his job.
4. Organisation: This evaluation measures the use of training, learning and change
in the job behaviour of the department/organisation in the form of increased
productivity, quality, morale, sales turnover and the like.
Various methods can be used to collect data on the outcomes of training. Some of these
are:
Tests: Standard tests could be used to find out whether trainees have learnt
anything during and after the training.
Studies: Comprehensive studies could be carried out eliciting the opinions and
judgements of trainers, superiors and peer groups about the training.
Cost benefit analysis: The costs of training (cost of hiring trainers, tools to learn,
training centre, wastage, production stoppage, opportunity cost of trainers and
trainees) could be compared with its value (in terms of reduced learning time,
improved learning, superior performance) in order to evaluate a training programme.
Feedback: After the evaluation, the situation should be examined to identify the probable
causes for gaps in performance. The training evaluation information (about costs, time
spent, outcomes, etc.) should be provided to the instructors, trainees and other parties
concerned for control, correction and improvement of trainees' activities. The training
evaluator should follow it up sincerely so as to ensure effective implementation of the
feedback report at every stage.
Purpose-
To establish and maintain a documented procedure for identifying and providing training
to all the employees of the organization with essential skill and knowledge so as to
achieve desired quality and productivity goals.
Scope-
Training is provided both In House and through Outside Agencies Which could be
for an individual or for group of persons as a collective training.
Planned Training-
The planned training programme is drawn on annual basis both for individual and group
of persons for collective training at the beginning of Calendar Year by Manager HRD and
HRD Executive of factory. The departmental Heads drawn out the training requirements
on the training requisition slip and sent it to HID Dept. Training of the senior personnel at
Factory Is also catered for at Head Office on receipt of requirement from HRD Executive.
The annual Training Prog. at Head office is approved by from Chairman cum Managing
Director.
Annual training Prog. is prepared on format and circulated to all heads of department and
is updated. If required in case of additional training needs.
Emergent Training
Identification of such training need is done by the concerned HOD at Head Office and
HOD/Supervisor at factory and accordingly forwards their request. The procedure as in
case of planned training is followed there after.
Conduct of Training
HRD Head at HO & HRD (Executive) at factory ensures that identified training in their
respective areas is conducted as scheduled.
In case of External training, liaison with the agency is done and dates,
venue etc. is fixed up and concerned person is intimated through
Heads of Department.
Logic Consultant
Organic farming
Scientific Instrumentation
Trouble shooting
PURPOSE OF PROJECT
To know the effectiveness of the training programme conducted by the
company.
Job satisfaction
Job satisfaction is in regard to one's feeling or state of mind regarding the nature of their
work. It can be influenced by a variety of factors e.g.: quality of one's relationships with
there supervisor, quality of physical environment in which they work, degree of
fulfillment in there work etc.
Second, job satisfaction is often determined by how well outcomes meet or exceed
expectations. For example if organizational participants feel that they are working more
harder than others in the department but are receiving fewer rewards, they will probably
have a negative attitude toward the work, the boss or the coworkers. They will be
dissatisfied. On the other hand, if they feel they are being treated very well and are being
paid equitably, they are likely to have a positive attitude toward the job. They will be job
- satisfied.
Factors affecting jobs are the main factors of job satisfaction, which may be challenging
work, reward systems, working conditions, colleagues, learning and personality. Skill
variety autonomy and significance are challenging tasks, which provide maximum
satisfaction to employees. Many people feel bored if a job is too simple and routine, but
many employees also enjoy simple and routine jobs.
The job characteristics are important factors for providing satisfaction. Reward systems,
equitable rewards, equal pay for equal work, promotion avenues, etc are satisfaction
factors. Money is important to employees having unfulfilled basic needs, i.e. they require
more award and recognition.
The relationships between the employees and the managers have an important
bearing on job satisfaction.
Job satisfaction is greater in case the higher authority is sympathetic, friendly and
willing to help the employees. Employees feel satisfied when their views are listened
to and regarded by their higher authorities
Personal attitude and perceptions are the employees' angles of satisfaction, which
should be taken into consideration while motivating people to arrive at job
satisfaction
Feedback from the job itself and autonomy are two of the major job-related
motivational factors. A recent found that career development was most important to
both younger and older employees.
It commonly is manifested in ways such as checking to see how well the employee is
doing, providing advice and assistance to the individual, and communicating with the
associate on a personal as well as an official level . The other dimension is participation
or influence, as illustrated by managers who allow their people to participate in decisions
that affect their own jobs. In most case, this approach leads higher job satisfaction.
Friendly, cooperative coworkers or team members are a modest source of
job satisfaction to individual employees. The group, especially a "tight" team,
serves as a source of support, comfort, advice, and assistance to the individual
member.
Most assume a positive relationship; the research to date indicates that there is no strong
linkage between satisfaction and performance. Conceptual, methodological, and
empirical analyses have questioned and argued against these results.
The best conclusion about satisfaction and performance is that there is, definitely a
relationship. The relationship may even be more complex than others in organization
behavior. For example, there seem to be many possible-moderating variables, the most
important of which is reward. If people receive reward they feel are equitable, they will
be satisfied, and is likely to result in greater performance effort.
Unlike that between satisfaction and performance, research has uncovered a moderately
negatively relationship between satisfaction and turnover. High job satisfaction will not,
in and of itself, keep turnover low, but it does seem to help. On the other hand, if there is
considerable job dissatisfaction, there is likely to be high turnover. Obviously, other
variables enter into an Employees decision to quit besides job satisfaction. For example,
age tenure in the organization, and commitments to the organization, may playa role.
Some people cannot see them selves working anywhere else, so they remain regardless of
how dissatisfied they feel.
Another factor is the general economy, typically there will be an increase in turnover
because will being looking for better opportunities with other organization.
Research has only demonstrated a weak negative relationship between satisfaction and
absenteeism. As with turnover, many variables enter into the decision to stay home
besides satisfaction with the job. For example, there are moderating variables such as the
degree to which people that there job are important. For example, research among state
govt. Employees has found those who believed that there was important had lower
absenteeism than did who did not feel this way. Additionally, it is important to remember
that although job satisfaction will not necessarily result in absenteeism, low job
satisfaction more likely to bring about absenteeism.
Significance of Study
Every organization desires that it will grow continuously and make and retain its position
in the competitive and continuously changing market environment. For this purpose the
employees of the organization must be skilled and talented. But all the employees may
not have the desired skills. Their skills can be improved with the help of training
programs. It is an important activity for the origination to conduct appropriate and related
programme for its employees, so that may be able to understand the terms required for
the completion of his job. This also helps the employees of the organization to know
about his job and organization very well. This also helps in better communication and
relation among the organization wants to grow rapidly, then it is essential for it to conduct
periodically training programmes for its employees to improve the skills and knowledge.
PREFACE
People are a companys most important assets. They can make or break the
fortunes of a business. In todays highly competitive business environment
placing the right people in the right position is very critical for the success of
any organization.
EXECUTIVE SUMMARY
Like in the case of BPOs, Insurance sector too faces the problem of
attrition. Thus, recruitment is an ongoing process carried through out the year.
The project is based on the study of recruitment process. The various
recommendations suggested have been the result of the study. The idea is to
generate ways of dealing with high attrition and making hiring process
manageable and efficient.
Data Used
Primary data:
Survey method
v Secondary data:
Websites
Published articles
v Web sites
v Journals
v Magazines
v Books
Findings
v Recruitment is done throughout the year more during the months of May-
June and Oct-Nov;
Thus the whole research would be done under the guidance of external guide. It
will also involve recruitment and selection processes, reading the material
provide internally by the organization, information from the new employees.
Introduction
1.1 Introduction Of The Insurance Industry
Overview
The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed
in primitive men also. They too sought to avert the evil consequences of fire and flood
and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era past few centuries yet its beginnings date back
almost 6000 years.
The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938. The Insurance Act 1938
was the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services, it
adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent
of GDP and funds available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This itself is an indicator that growth potential for the
insurance sector is immense.
India has come a full circle from being an open competitive market to nationalization and
back to a liberalized market again. Tracing the developments in the Indian insurance
sector reveals the 360 degree turn witnessed over a period of almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the passage
of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of insurance
in India and this may also include restructuring and revitalizing of the public sector
companies. In the private sector 14 life insurance and 8 general insurance companies
have been registered. A host of private Insurance companies operating in both life and
non-life segments have started selling their insurance policies..
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only tapped by
the state owned LIC till the entry of private insurers. The penetration of life insurance
products was 19 percent of the total 400 million of the insurable population. The state
owned LIC sold insurance as a tax instrument, not as a product giving protection. Most
customers were under- insured with no flexibility or transparency in the products. With
the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent
of the market in terms of premium income. The new business premiums of the 12 private
players has tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart
marketing and aggressive distribution. That's the triple whammy combination that has
enabled fledgling private insurance companies to sign up Indian customers faster than
anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. Buoyed by their quicker than expected success, nearly
all private insurers are fast- forwarding the second phase of their expansion plans.
ICICI Prudential is currently the No. 1 private life insurer in the country. For
the financial year ended March 31, 2005, the company garnered Rs 1584 crore
of new business premium for a total sum assured of Rs 13,780 crore and wrote
nearly 615,000 policies.
The Company recognizes that the driving force for gaining sustainable
competitive advantage in this business is superior customer experience and
investment behind the brand. The Company aims to achieve this by striving to
provide world class service levels through constant innovation in products,
distribution channels and technology based delivery. The Company has already
taken significant steps to achieve this goal.
India's Number One private life insurer, ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank-one of India's foremost
financial services companies-and Prudential plc- a leading international
financial services group headquartered in the United Kingdom. Total capital
infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer base,
we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.
FACT SHEET
THE COMPANY
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the first quarter
ended June 30, 2007, the company garnered Rs. 987 crore of weighted retail +
group new business premiums and wrote over 450,000 retail policies in the
period. The company has assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The
AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI
Prudential's ability to meet its obligations to customers at the time of maturity
or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private
life insurers in India. It has a strong presence across India with over 680
branches and over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,
Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank,
Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored
Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-
operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-
operative Bank and Imphal Urban Cooperative Bank Limited.
Savings Solutions
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It
is available in 3 options level term assurance, level term assurance
with return of premium and single premium.
HomeAssure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.
Child Plans
Health Solution
Health Assure and Health Assure Plus: Health Assure is a regular
premium plan which provides long term cover against 6 critical illnesses
by providing policyholder with financial assistance, irrespective of the
actual medical expenses. Health Assure Plus offers the added advantage
of an equivalent life insurance cover
Cancer Care: is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various cancer
conditions.
Diabetes Care and Diabetes Care Plus*: 1st ever critical illness
insurance cover for diabetics.
ICICI Prudential also offers Group Insurance Solutions for companies seeking
to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The
plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each
member of the group. Employees have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time of
retirement.
ICICI Pru Group Term Plan: ICICI Prus flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy
is paid to the beneficiary nominated by the member on his/her death.
2. Accident & Disability Benefit: This rider option pays 10% the sum
assured under the rider every year till next 10 years on Accidental
Permanent Disability of 2 Organs.
3. Critical Illness Benefit: protects the insured against financial loss in the
event of 9 specified critical illnesses. Benefits are payable to the insured for
medical expenses prior to death.
4. Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is
available on SmarKid, SecurePlus and CashPlus
1) Protector:-
2) Maximiser :-
3) Balancer :-
4) Preserver :-
money markets.
5) Flexi Growth:-
New Fund (NFO) launched in March 2007, Long term returns from an
equity portfolio lare,mid and small cap companies.
6) Flexi balanced:-
Their vision is to make ICICI Prudential Life Insurance Company the dominant
new insurer in the life insurance industry. This they hope to achieve through
their commitment to excellence, focus on service, speed and innovation, and
leveraging our technological expertise.
The success of the organisation will be founded on its strong focus on values
and clarity of purpose. These include:
They believe that they can play a significant role in redefining and reshaping
the sector. Given the quality of their parentage and the commitment of their
team, they feel that tere will be no limits to their growth.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private
life insurers in India, having commenced operations in 150 cities and towns in
India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in
the north to Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with
ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna
Bank, and some co-operative banks, as well as over 300 corporate agents and
brokers. It has also tied up with NGOs, MFIs and corporates for the distribution
of rural policies.
ICICI Prudential has recruited and trained more than 1, 90,000 insurance
advisors to interface with and advise customers. Further, it leverages its state-
of-the-art IT infrastructure to provide superior quality of service to customers
RegisteredOffice :
New Delhi-110011.Tel:46554405
Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi Road
New Delhi - 110055. Tel: 601 3232
METHODOLOGY
Before any task was undertaken, we were asked to go through the HR policies of ICICI Prudential
Life Insurance so that we get a better understanding of the process followed by them.
The first task was to understand the various job profiles for which recruitment was to be done.
The next step was to explore the various job portals to search for suitable candidates for the job
profile.
Once the search criteria were put, candidates went through a telephonic interview to validate the
information mentioned in their resume.
A candidate matching the desired profile was then lined for the first round of Face to Face interview in
their respective cities.
Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer was
crosschecked by the HR team. If they think that the candidate was good to hire or not.
When a candidate cleared his first round, he is then made to take an online aptitude test. We created
the online aptitude test. It the HR department, which has the exclusive rights to assign test, codes to the
candidates. Each code was unique and could be used only once by a candidate.
Once the candidate completed his first assessment, his scores were checked. If he cleared his cut-off
he was given another test.
I had the responsibility to make sure that candidates complete all formalities and had to regularly
follow up with them.
Since we received many resumes, it was essential that a database be maintained to keep a track. It was
convenient method than to stock up piles of papers. ICICI has their own database named as PACE, I
update all the records of the new joinees in that tracker. PACE containes all the information of a
candidate such as name, contact number, location etc.
The external guide maintained a regular updating of the database.
Understanding what kinds of database are maintained and how they help in keeping a record.
I was also involved in maintaining a track of test codes given, the database for employee referrals,
Database for the resumes received through mails and response of advertisement.
RESEARCH METHODOLOGY
Date Source
Sample Size : - 80
PROJECT SCHEDULE :-
Task:
The recruitment at ICICI Prudential Life Insurance involved a lot search from the
database and calling up candidates to check whether they fit the job specification.
Difficulties:
Candidates who were scheduled for interview would not turn up;
Run out of database many times since most of them would have already been
contacted;
Task:
Difficulties:
A summer trainees we could not separate systems to work on;
At times many people had for couple of hours to work on the computer;
Since STD calls had to be made, the availability of phone was limited, so
there was greater coordination required with respect to its usage and
maintains a time slot so that other person has a chance to use.
Task:
Difficulties:
People asked lot of counter question so convincing them was a major task;
Topic Information
The art of choosing men is not nearly so difficult as the art of enabling
those one has chosen to attain their full worth.
Recruiting begins when a vacancy occurs and the recruiter receives authorization
to fill it. The next step is careful examination of the job and enumeration of skills,
abilities and experience needed to perform the job successfully. Other steps
follow:
Scope: To define the process and flow of activities while recruiting, selecting and
appointing personnel on the permanent rolls of an organization.
Authorization:
Any amendments to and deviations from this policy can only be authorized by
the Head-human Resources and the Managing Director.
Exclusions:
The policy does not cover the detailed formalities involved after the candidate
joins the organization.
ACTIVITY FLOW
The HR department would set the recruitment norms for the organization.
However, the onus of effective implementation and compliance with the process
rests with the heads of the respective functions and departments who are
involved in the recruitment and selection process.
Functional Head
RECRUITMENT PLANNING
A. The manpower planning process for the year would commence with the
companys budgeting activity. The respective Functional heads would
submit the manpower requirements of their respective functions/
departments to the board of Directors as part of the annual business plan
after detailed discussion with the head of human Resource Function
along with detailed notes in support of the projected numbers
assumptions regarding the direct and indirect salary costs for each
position.
C. The Regional HRs would undertake the planning activity and necessary
preparations in advance of the anticipated requirements, as monthly and
quarterly activities on the basis of the approved budget, estimated
separations and replacements therefore.
D. The vacancies sought to be filled or being filled shall always be within the
approved annual manpower budget and no recruitment process shall be
initiated without the formal concurrence of the Head of the Regional HR
under any circumstance. Head of the Regional HR shall also have the
responsibility to monitor the appointments being considered at any point
of time with specific respect to the duly approved manpower budgets.
Selection of Sources
Employee referral as per any company scheme that may be approved from
time to time;
The norms for using any of the sources are not water tight. Number of
positions, criticality of positions and the urgency of the positions, confidentiality
requirements, relative efficacy and cost considerations would play a role in the
choice of the appropriate sourcing mechanism.
ADVERTISEMENTS
All recruitment advertisements (in any form and any medium) shall always
conform to the KLI compliance norms and would not be released by any
department or branch without the approval of the VP-HR. depending on the
specifics of each position for which recruitment advertisements are to be
released, Regional HR may obtain assistance from the companys marketing
department and/or any external advertising agencies for the preparation of
the contents. Key features of the positions as notified by the Functional Heads
would normally form a part of the advertisement text.
The media for releasing advertisement would depend on the level of the
position being considered and the urgency of the requirements.
In case of need, the Regional HR may take a Tele interview of the candidate for
further assessment process.
Second Level Screening
Aptitude Test
If the first assessment is positive, the candidates will give the aptitude test,
once such test is selected approved by the company. The scoring, interpretation
and the generation of interview probes from that test will also be done at this
time. People who qualify the minimum criteria on this test will be put up on to
the Functional Head (VPs in case of HO) for functional assessment and
suitability into the role.
Tied Agency Sales Manager candidates short listed by the BM have will
then take sales Aptitude test, once such a test is finalized. For the final selection,
the regional Manager (Business Heads for HO) will meet the candidates short
listed by the branch manager/VP. The chart specifying the Minimum approval
level for each level of recruitment is specified below:
B. Responsibility for negotiations and finalization of the terms shall rest with
the best Branch Manager/Associated Manager. They may seek the
assistance of the recruitment managers, whenever required. Reference
checks process should not normally be initiated unless the candidate has
indicated his firm acceptance of the offer being made by us.
Reference checks
B. Where the minimum two reference checks are not possible (particularly
with the current employer) or where there is a mixed response from
different sources, the matter may be to the VP-HR for a final decision.
Depending on the seniority and any other considerations about the
positions, VP-HR would normally consult the functional head concerned,
before coming to conclusions. Any candidate whose credentials are
doubtful shall not be recruited.
Employment details.
Language Proficiency.
Proof of Residence.
D. Employee services team will issue offer letter, to be signed by the National
Recruitment Manager or Chief Manager-HR, and send the same to the
concerned Branch Manager/ HR Manager.
G. Once the documentation is complete for the new joinee (including the
accepted appointment letter), people who may have joined before 20 th of
the month but have not been included in the payroll for the month
because of delay in receipt of papers will be given ad-hoc salary advance
(up to maximum of 65% of the pro rated salary). This advance will be
adjusted once the person gets included in the subsequent months payroll.
H. If the person does not submit the relieving letter from the previous
organization, where required to be submitted as per the table given above,
within three months of joining, the employee service manager can put
their salary on hold till such time as the said documents are received.
Complete documentation for the entire recruitment and selection process for
easy and quick retrieval in a readily auditable format
Timely and effective communication with all internal and external parties
including the candidates
Tracking the progress of the selected candidates including resignation,
extensions of probation periods/training period, etc for the purpose of
improvement to recruitment and selection process.
Effective coordination with the post recruitment arm of the Human Resource
function
Strengths Weaknesses
Brand equity of Kotak Mahindra Bank. Pre assessment tests are costly.
Tie up with recruitment agencies on Same channel partners are handling all
supplying fixed number of footfalls insurance companies. This leads to same
week on week. pool of candidates being circulated to all
partners.
Develop exclusive contract with
channel partners to meet the Increasing spill over as a candidate has
manpower requirements. more than one offer at the time of making
a job shift.
Make blue form brief and to the point.
As the insurance industry is small,
Reduce turn around time of making an senior level candidates hesitate to meet
offer. HR of other companies for the fear of
grapevine.
Here at ICICI Prudential Life Insurance, the delays occur when the outstation
candidates are called for interviews at Regional branches like Delhi and Mumbai.
Sometimes, because of busy schedule of senior managers and sometimes because
of tight schedule of candidate, the interview has to be postponed. This delay
could be minimized by scheduling interviews in the regional locations. It is
recommended to reduce the turnaround time for the recruitment and selection
process. It must be made mandatory for the candidates to take the test, filling up
forms etc within the stipulated time, this will make sure that the candidates do
not hold casual attitude and take the recruitment process more seriously.
Additionally it can send across a positive image about the company. White
space in recruitment can be compressed by the use of IT also. Technology (such
as automated or Web-based tracking) is ideal for eliminating unnecessary steps
and reducing delays.
Since the limited placement agencies are sourcing candidates to all insurance
companies, there often comes the problem of duplication of data. Therefore it is
recommended that more and more consultants should be tied up from multiple
segments to attract large pool of new and fresh talent.
Web-based technology lets you increase hiring speed and quality while
reducing costs. Currently, job boards constitute the biggest use of the Web,
offering access to thousands of resumes within hours. But the Web can also be
a powerful tool for screening and qualifying that flood of resumes.
Companies have begun to use the Web to collect and instantly match data on
candidate skills, motivations, and experiences against job criteria. Other uses
of Web-based technology include online interviewing, candidate assessment
and testing, applicant self-scheduling, and tracking. Work the Web wisely
and you save time for recruiters and hiring managers and nab top candidates
before your competitors can.
It is recommended that apart from the person-job fit, method must be
devised to check for person-organization fit. A person-organization helps to
assess how well a candidate is suited the organization. Whether the attitude
he/she carries will promote both organizational as well personal goals. This
takes a great importance especially when attrition is high. It will help the
organization to retain its employees for a longer period of time and less
burden on recruitment staff.
CONCLUSION
The first step in this direction is to ensure competitive people come in the
organization. Therefore recruitment in this regard becomes an important
function. The organization must constantly improvise in its recruitment process
so that it is able to attract best in the industry in order to serve the best. Thus the
organization must look out for methods that can enable it to adopt best
recruitment practices.
LEARNINGS
Every endeavor undertaken to accomplish challenging goals, can only be successful
under the experienced and encouraging guidance. I am privileged to have undergone
training at ICICI Prudential Life Insurance. As learning never stops, my learning at Kotak
has come from a lot of exposure, on the job training and close interaction with the
corporate. In brief my learning and achievements can be summarized as under:
Yes
No
To some extent
Advertisement
Employee Referral
Consultant
Portals
All of these.
4)Does ICICI Prudential adopt Internal Recruitment Source i.e. Transfer &
Promotion:-
6)Rank the Qualities in the order of your preference on the basis of which
you select candidate:-
Qualification
Experience
Skills
Personality
8) Does ICICI Prudential ask candidates to enter into BONDS with them:-
Yes
No
Yes
No