Summer Internship Report On

A Study of Recruitment & Selection Analytics Adopted by Unicon Investment Solutions

Submitted By Amit Singh 10-01-0160 MBA 2010-2012 Under the supervision of

Mrs.S.Basu Dean, GSMS

GLOBAL SCHOOL OF MANAGEMENT SCIENCE GAUHATI UNIVERSITY SAKET CAMPUS, WHITE HOUSE, NBCC PLAZA SECTOR 5, PUSHP VIHAR, SAKET, NEW DELHI 110017, INDIA

DECLARATION

I, Amit Singh, student of Masters of Business Administration from Global School of Management Science, Gauhati University hereby declare that I have completed Summer Internship on STUDY OF RECRUITMENT AND SELECTION ANALYTICS ADOPTED BY UNICON INVESTMENT SOLUTIONS, NEW DELHI as part of the course requirement .

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: 1/07/2010

Amit Singh

10-01-0160

Place: New Delhi

MBA(2010-2012)

Acknowledgement
At first I thank god for blessing me in completing this research. A single individual can achieve no noble objective. I am indebted to a number of persons for their kind advice, suggestions, direction and cooperation that enabled me to have an experience in the dynamic and challenging environment of the HR sector ultimately to prepare this report. Then Id like to thank my industry guide Mr. Amit Pandey for his excellence guidance which has helped me in preparing this report.

It gives me immense pleasure to thank my faculty guide Dr.S.Basu who have contributed directly in this project with her help and encouragement. I express my sincere gratitude to Mrs. Divya Verma Kaur, Country Head, HR&Training at Unicon Investment Solutions for providing information whenever asked for.

I would also like to thank all other members of the HR team who helped me gather data for my research work. Preparing this report wouldnt have been possible without the help of my batchmates who helped me in analyzing the data.

Amit Singh 10-01-0160

CONTENT

1. EXECUTIVE SUMMARY..6

2. COMPANYPROFILE.8 3. RESEARCH METHODOLOGY..16

4. RECRUITMENT19 5. SELECTION...34 6. PERFORMANCE, REWARDS & SEPERATION....41 7. LITTERATURE REVIEW..51

8. CONCLUSION & SUGGESTION...58

REFERENCES

OBJECTIVE

To find out the procedures, methods & techniques related to recruitment and selection applying at Unicon Investment Solutions. To find out the various internal & external sources of recruitment, that the organization is applying for recruiting the people from within or outside the organization. To learn & experience something from the HR department about the various HR practices. To gain new insight. To determine competencies required for different vacancies in an organization.

CHAPTER -1 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Today, in every organization personnel planning as an activity is necessary. It is an important part of an organization. Human resource planning is a vital ingredient for the success of the organization in the long run. There are certain ways that are to be followed by every organization, at the right place and right time, so that organization can achieve its planned objectives.

The objectives of Human Resource Department are Human Resource planning, recruitment and selection, training and development, career planning, transfer and promotion, risk management, performance appraisal and so on. Each objective needs special attention and proper planning and implementation.

For every organization it is important to have the right person on the right job. Recruitment & Selection plays a vital role in this situation. Shortage of skills and the use of technology are putting considerable pressure on how employers go about recruiting and selecting staff. It is recommended to carry out a strategic analysis of recruitment and selection procedure.

With reference to this context, this project is prepared to put light on recruitment and selection process.

This project also includes the various techniques of Human Resource management, namely Performance Management, Talent Management, Rewards and Appraisal along with Human Resource Planning Cycle.

CHAPTER -2 COMPANY PROFILE

COMPANY PROFILE

UNICON is a financial services company which has emerged as a one-stop investment solutions provider. It was founded in 2004 by two visionary and hard working entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. Unicon has been founded with the aim of providing world class investing experience to hitherto underserved investor community. The technology today has made it possible to reach out to the last person in the financial market and give him the same level of service which was available to only the selected few.

Unicon provides personalized premium service with reasonable commissions on the NSE, BSE & Derivative market through our Equity broking arm Unicon Securities Pvt. Ltd. With their sophisticated technology you can trade through your computer and if you want human touch you can also deal through our Relationship Managers out of our more than 100 branches spread across the nation. The company is headquartered in New Delhi, and has its corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida.

UNICON is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets. The Company is supported by more than 4500 Uniconians and has an extensive network of over 500 business offices in 235 cities across India.

With a customer base of over 200,000 the Unicon Group has an eye for the intricate financial needs of its clients and caters to both their short term and long term financial needs through a comprehensive bouquet of investment services. It has been founded with the aim of providing world class investing experience to the investing community. These services range from offline & online trading in equity, commodities and currency derivatives to debt markets to corporate finance and

portfolio management services. The company has a sizable presence in the distribution of 3rd party financial products like mutual funds, insurance products and property broking. It also provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPOs. The distribution network is backed by in-house back office support to provide prompt and efficient customer service

10

STRUCTURE ORGANIZATION

OF

MANAGEMENT

IN

THE

The Unicon Management Team:

1. Mr. Gajendra Nagpal - Founder & CEO

2. Mr. Ram M Gupta - Co-Founder& President 3. Mr. Vikas Mallan - Chief Financial Officer, Head Real Estate

4. Mr. Sandeep Arora - Chief Operating Officer

5. Mr. Y.P. Narang - Head - Fixed Income Group 6. Mr. Subhash Nagpal - Director Strategic Planning & Implementation

7. Mr. Manmohan Tiwari - Country Head - Equity Sales

8. Mr. Rajev B Sharma - Country Head - Wealth Management

9. Mr. Anurag Nayar - Chief Technology Officer

10.Mr. Puneet Gupt - Head - Internet Broking

11.Ms. Divya Varma Kaur - Country Head - HR and Training

11

TEN COMMANDMENTS VALUES OF THE ORGANIZATION

Integrity and Discipline- It is companys core commandment around which everything revolves. The company wants to be seen by all externally and within the organization to be of extremely high character and integrity. Passion to excel There should be an inner passion to excel individually and as a team. Innovation- Thinking about something before others, then implementing it and still look ways for improving what has been implemented. It is a continuous process. Open to change Biggest impediment in ones development is an inborn conviction that whatever one knows is the only way to do the job. There are some who challenged themselves and the mankind made such developments. Unlearn and learn- New ideas, new views and new perspectives have to be respected and built upon. Care Great communities and great organizations are built around caring for each other. One has to care for its customers, both internal and external. Transparency Transparency is necessary to maintain in every action and thoughts to build some of the other values like care, teamwork and integrity. Its the only way, the company believes, that all its goals and objectives are aligned to that of the organization. Risk-Adjusted Returns The Company considers it extremely important to evaluate the risks and returns of its actions. All new opportunities, approaches need to be evaluated from this angle in order to deliver on the companys final goal of sustaining long-term shareholder value. Team Teamwork is considered as of utmost importance to achieve the goal of the organization. Entrepreneur The employees of this organization are asked to view themselves as Entrepreneurs in charge of the companys destiny. The sense of ownership and responsibility is considered vital for the companys success.

12

VISION AND MISSION OF HR

Build an organization of outstanding people and capabilities that enable us to win in the market place ACQUIRE - To be an employer of choice so that it can continuously attract the best and brightest to help it make a difference. ENGAGE- To have purposeful and passionate people engaged with the organizational direction. REWARD- To retain in a manner that not only helps it to retain its best but also brings out the best in performance and risk taking. DEVELOP- To develop inspiring managers to ensure Fullerton dominates the market.

The organization is deeply committed to its people, its Human Capital! The 4 key components ACQUIRE, ENGAGE, REWARD AND DEVELOP have areas of focus, designed to deliver Human Capital Vision of Building an organization of outstanding people and capabilities that enable us to win the market place. The progress is measured in clearly defined focus areas as given below;

ACQUIRE Employer Branding Talent profiling with in-depth competitor mapping Employee Referral Exciting work experience Challenging roles Managing by metrics Positive work culture Grow with growth Succession planning

13

ENGAGE Orientation/ Induction/ On boarding Communication with employees through newsletters/ intranet etc. Open Houses/ Senior Connect Work life balance Employee satisfaction survey Job enlargement Family engagement Exit interview Employee feedback at all stages

DEVELOP First Edge Training Education Programs Mentoring Job Rotation Community Development Performance Management Leadership Development High Potential Tracking

REWARD Market bench marking Performance Bonus/ESOPs Best Practice Incentive Plans Incentive Recognition Schemes Career Growth Long Term Benefits We Care Health Insurance Accident Insurance

14

Personal Loans at company interest First Trust Profit Sharing

15

CHAPTER -3 RESEARCH METHODOLOGY

16

RESEARCH METHODOLOGY
Objective of the study
To present an overview of Recruitment and Selection activities of Unicon Investment Solutions. To identify the problems facing by Unicon in case of recruitment and selection process and suggest remedial measures.

Data collection
We have collected both primary and secondary data with a pre-designed form to conduct our study.

A) Primary data collected through

Questionnaire method

B) Secondary data collected through-

i) Internal Sources Company HR Strategy Company Statistics

ii) External Sources Journal & Internet Other official sources & records

17

Data Analysis
All data are analyzed by using MS Excel.

Data interpretation
Data are presented and interpreted through tables, figures, graphs, diagrams, charts, photographs etc along with own legends (i.e. title) and serial number.

18

CHAPTER -4 RECRUITMENT

19

RECRUITMENT PROCESS AT UNICON INVESTMENT SOLUTIONS

MANPOWER HIRING
Unicon Investment solutions follow a step by step process in order to hire manpower and make him/her a part of the organization. The entire process is divided into four steps, namely Identification of the candidate Closure in Process [CIP] Joining in Process [JIP] On-boarding

How does the company decide that it has to recruit human capital? Identification of the GAP The Company first finds out where the shortage of manpower is and how much of it is needed in order to fill the gap. Earlier the company had pre-decided manpower. In other words, it was known as to which branch will have how many employees. But, in contemporary times, depending upon the market manpower is decided. BUDGET is an essential element in deciding how much human capital is required. Mathematical formulas are used in order to forecast the demand of manpower. For example, suppose Collection Team handles on an average 250 cases. Each Collection Officer is allotted 50 cases. Therefore, there would 5 Collection Officers. However, if the Collection Team begins to receive 350 cases on an average, it will have to increase the strength of manpower. Thus, this is how the gaps are identified.

20

After the gap is identified, recruitment process begins.

Recruitment is the most important function in an organization because with the help of this function the management selects the best candidate. The organization, in this growing competitive world, need to have the best of the manpower so as to have an edge over its competitor. According to Flippo, Recruitment is the process of searching for perspective employees and stimulating and encouraging them to apply for jobs in an organization. In this world of Yoder, Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measured for attracting that manpower in adequate numbers to facilitate effective selection of an efficient force.

We know, Recruitment is the process of discovering potential candidates for actual or anticipated organizational vacancies. It is a process of discovering the people for vacant posts which involves recruitment planning, job analysis and matching between supply and demand of human resources.

21

A) Human Resource Planning: This is the first step in the recruitment process of every year. Unicon determines the number of employees to be recruited and what qualification they must possess to avoid HR surplus or deficiency.

B) Specific Request to the manager: After a successful HR planning The HP department than sends a requisition to the concerning manager for its upcoming HR needs.

C) Job Openings Identified: Here HR department identify the job openings from the historical data, Statistical analysis, new-venture analysis and budget and planning analysis.

D) Job analysis: In this step HR department defines the duties, responsibilities and accountabilities of the jobs it has identified.

22

E) Recruitment: In the fifth step they select the sources of recruitment i.e. internal external for recruitment.

F) Satisfactory pool of recruiters: Among the applicants applied for the vacant post eligible candidates are selected.

Table 1: N Male Female Total 1421 194 1615 Percentage 88.8% 11.2% 100

The Above table shows the number of people employed in Unicon. It shows that out of 1615 employees, working in delhi, ncr, the number of male employees is 1421 which comprises of 88.8% of the total employees and rest 194 which is 11.2% are female employees.

23

RECRUITMENT POLICY
In todays rapid changing environment, a well defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy helps ensure a sound recruitment process.

It specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be the implementing recruitment programmes and procedures by filling up vacancies with best qualified people.

Composition of Good Recruitment Policy

Complies with government policies in hiring. Provides optimum employment security and avoids frequent lay-offs or last time. Assures the candidates of the managements interest in their development. Reflects the social commitment of the organization by employing handicapped people and other underprivileged people of the society whenever there is the possibility of job fit.

Stresses and reflects the importance of job analysis. Is the cost effective for the organization? Is it flexible enough to accommodate changes in the organization?

24

FACTORS EFFECTING RECRUITMENT PROCESS OF UNICON:

The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors can be controlled by the organization and the external factors are those which cannot be controlled by the organization. The internal and external forces affecting recruitment function of Unicon Investment Solutions are stated bellow:

11.2Total 8000 100

25

External Factors effecting recruitment process:

A) Supply and Demand: The availability of manpower both within and outside the organization is an important determinant in the recruitment process. Unicon sometime depends upon its internal sources by providing them special training and development programs rather outsourcing when there is limited supply in the market for the professionals demanded by the company.

B) Image/ Goodwill: Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Unicon has built an image which has made their recruitment process much easier to handle.

C) Political-Legal-Social Environment: Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. Sometime government rules & regulations and labor union restrict management freedom to select those individuals who it believes would be the best performers.

D) Competitors: The recruitment policies of the competitors sometime have an effect on the recruitment function of Unicon. To stay ahead of the competition, many times they had to change their recruitment policies according to the policies being followed by the competitors.

26

Internal Factors effecting recruitment process:

A) Recruitment Policy: The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment program. It may involve organizational system to be developed for implementing recruitment programs and procedures by filling up vacancies with best qualified people. Though Unicon has its recruitment policy it does not follow as it should. A good recruitment policy is based upon the organizations objectives, identification of the recruitment needs, preferred sources of recruitment, criteria for selection and preferences, the cost of recruitment, and other financial implications. It should also reflect the reputation and image of the organization.

B) Human Resource Planning: Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. Every year Unicon determines the number of employees to be recruited and what qualification they must possess.

C) Size of the organization: The size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.

27

D) Cost: Minimization of Cost is what every organization look for and recruitment incur cost to the employer, therefore, Unicon try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.

E) Growth and Expansion: Organization will employ or think of employing more personnel if it is expanding its operations.

Forms of Recruitment:

The organizations differ in terms of their size, business, processes and practices. A few decisions by the recruitment professionals can affect the productivity and efficiency of the organization. Organizations adopt different forms of recruitment practices according to the specific needs of the organization. There are two forms of recruitment; centralized and decentralized forms of recruitment:

1) Centralized forms of recruitment:

The recruitment practices of an organization are centralized when the HR / recruitment department at the head office performs all functions of recruitment. Benefits of the centralized form of recruitment are: Reduces administration costs Better utilization of specialists Uniformity in recruitment Interchangeability of staff Every department sends requisitions for recruitment to their central Office

28

2) Decentralized forms of recruitment:

Decentralized recruitment practices are most commonly seen in the case of multinationals operating in different and diverse business areas. Unicon Investment solutions has its own HR department it uses Centralized forms of recruitment in their recruitment process.

Source of recruitment in Unicon Job openings can be filled internaaly or externally by the HR department. When job openings cannot be filled internally, the HR department fills it from external sources, i.e from ads, job agencies, educational institutes etc. Unicon employs various sources internal and external discussed below

Pie chart showing source of recruitment of Unicon

29

Ways Of Recruitment Adopted By Unicon

Direct Walk-ins People I know Recruiting Consultancies Advertisements Promotion Internal Job Posting Head Hunting

Direct walk-ins The Company follows the practice of direct walk-ins where in the candidates drop their resume for the vacancies they have heard of from people. People I know [PIK] Internal Employee Referral Scheme of the Company. Program Highlight Objective- To build an organization of like-minded people with strong values, burning with a fire to excel and take the organization to leadership position in the coming future. Who can refer-All employees.[Except persons having direct/indirect influential decisional powers for the position being referred] Not eligible for Referral Rewards- Human Capital Team Members and VicePresident + Senior Vice-President. Referral Reward Amounts - M1 and above -Rs.7500 per candidate O1 - O4 -Rs.3000 per candidate The primary focus is on internal referrals paid or non- paid. This in a way also ensures loyalty towards the organization.

30

 Consultant- Consultants are asked to provide the suitable candidate for the vacancy. Advertisements- In case of a vacancy, advertisements are placed in newspapers. Promotion The Company also uses promotion as a means of recruitment. If an employee is qualified enough and willing to switch to another position within the department then he/she is promoted and thus the gap is filled. Internal Job-Postings This is the practice of inter-department transfer. Not very frequently practiced by the company. Head Hunting This is generally practiced for Top Management posts.

After receiving the resumes, the company then begins with the Selection procedure. Based on the Job Description of the profile, the candidates are short listed for the interview round. The resumes are screened. Finance background has an edge. Reference Check

The candidates have to go through two interviews Business End Human Resource / Human Capital End

Important Points for the Interview Round The Interview round is evaluated on the basis of Interview Assessment Sheet. Minimum one round of interview has to be taken both by Business end and Human Capital end. Interview can be telephonic and/or face-to-face. Minimum one face-to-face interview from Business end is mandatory.

31

On the basis of the Interview Assessment Sheet, the candidate is selected or rejected. Interviewing Matrix has to be followed while conducting interviews A branch manager or a credit manager has the authority to select his/her own team. A branch manager or a cluster manager can be interviewed by the cluster manager. In the case of non- branch interviews, O3 can interview a candidate for the post of O4.

Once the candidate is selected after the interview round, he/she is IDENTIFIED as the eligible and qualified candidate. The candidate is then asked to fill an Application Form. This application form consists of the general information regarding residence details, education qualifications and Employment history. Employment Check, Education Check and Residence Check is carried out on the basis of the information provided in the application form In other words, Fraud Control Unit [FCU] is initiated.

32

Constrains of recruitment faced by Unicon :

Every organization faces some barriers during the recruitment process. HR professionals of Unicon Investment Solutions are not apart from that. The biggest challenge such professionals face is to source or recruit the best people or potential candidate for the organization. While asking them several questions about barriers about recruitment they have pointed out some factors which are stated below.

The major challenges faced by the HR department in Unicon are:

Lack of motivation: Recruitment is considered to be a thankless job. Even if the

organization is achieving results, HR department or professionals are not thanked for recruiting the right employees and performers.

Adaptability to globalization: The HR professionals of Unicon

Group are expected and required to keep in tune with the changing times, i.e.the changes taking place across the globe. So sometime it becomes little bit difficult for the HR department to align themselves with the frequent change taking place around the world.

Process analysis: The immediacy and speed of the recruitment process are the main

concerns of the HR in recruitment. The process should be flexible, adaptive and responsive to the immediate requirements. The recruitment process should also be cost effective.

Strategic prioritization: The emerging new systems are both an opportunity as well

as a challenge for the HR professionals. Therefore, they have to review the staffing needs and prioritizing the tasks to meet the changes in the market which has become a challenge for the recruitment professionals of Unicon.

33

CHAPTER -5 SELECTION

34

Selection process at Unicon:

Selection is the process of gathering information for the purposes of evaluating and deciding who should be employed in particular jobs. There is a basic distinction between recruitment and selection. Recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of Selection process is to choose the right candidate to fill the various vacant positions in the organization. Selection process of Unicon Investment solutions is shown in the following figure

35

a) Preliminary reception of applicant: The initial reception of the application of the candidate. The HR department sometime arranges a preliminary interview as a courtesy.

b) Employment tests: In the second step, the candidates have give some tests (Ability, knowledge etc) through which they compare applicants capability and skill level for the required job vacancy.

c) Selection interview: A formal, in-depth conversation is conducted to evaluate an applicant's acceptability Two broad questions for the interviewer: Can the applicant do the job? How does this applicant compare with others who are applying?

d) Verification of references: Verification of references is done in order to seek the answers of the following questions like: What kind of person is the applicant? Is the applicant a good and/or reliable worker?

e) Medical evaluation: generally a health checklist provides them information about the history health and accident (if any) of the applicant. It is used to determine whether the applicant can handle physical or mental stress. f) Supervisory interview: The ultimate responsibility for a new hired workers success fall to the workers immediate supervisor. So the supervisor often evaluates the applicants technical abilities. So, the supervisor decides whom to hire and whom to fire. Sometime supervisor leaves his decision making authority to the HR department.

g) Hiring decision: This is the end of the selection process. After selecting the desired candidate HR department notifies both successful and unsuccessful applicants. They also file applications of unsuccessful applicants and retain application of successful applicants in the employee's personnel file.

36

JOINING IN PROCESS
Once the check report generated turns out to be positive, the process then moves onto the third stage called the JOINING IN PROCESS. In this stage, the appointment letter is rolled out. Only once the appointment letter is handed over to the candidate can he/she be asked to resign from his/her current organization. When the candidate informs that he/she has resigned and provides the date of joining, this stage ends.

The process then enters the last stage called ON-BOARDING. Here the candidate is provided with the joining-kit. The Joining Kit is given to each employee at the time of joining. It consists of the following o Appointment Letters o Fitment sheet o Interview Assessment Sheet o A requirement of medical letter (if the employee is above 35 yrs old) o Introduction to the Company o Application Form (already filled by the candidate) o Joining Report Data privacy related undertakings, have to be duly signed by the candidate. o Health insurance Form o Set of compliance forms Provident Fund, Gratuity Nomination, and Employees State Insurance Corporation Compliance. o List of documents to be submitted this is cross-checked with the Personnel File Checklist. It is extremely important for the creation of employees ID, failing which he/she is not recognized as the employee of the Company. It is mandatory to receive all the documents mentioned in the Joining Kit. Without the Joining Kit, an employees ID cannot be created.

37

The below mentioned are extremely important for the generation of the ID. o Identity Proof Photo copy of License or Pan Card Passport etc. o Address Proof Electricity Bill, Ration Card etc. o Educational Qualification documents supporting it. o Previous Employment Details and the documents supporting it.

The employee is then asked to go through and sign the Code of Conduct [COC] and the Collection Code of Conduct [CCOC].

Thus, here ends the entire process of Manpower Hiring.

38

FIRST CAPITAL -A perfect tool for INFORMATION SHARING

As mentioned above, it is a software which reduces the paper work and makes every information available at one place. Every employee of the company has access to this software. A branch employee can see his own information. Branch Manager can see his own information as well as of those employees who are mapped to him. Human Capital Team has access to all the employees mapped in the region allotted to it. First Capital consists of every minor detail with regard to the employee. It consists of Personal details of the employees which include name, date of birth, contact number etc. Family details Employment details which include date of joining, role, department, grade, contract type, full/part time, location etc. Skills details Medical history Previous Employment Details References Self-rating This becomes important at the time of performance appraisal. Critical Incidences could be in the form of warnings, investigations, whistleblowing etc. This again plays an important role at the time of performance appraisal of the employee. Attendance details For the branch employees, attendance has to be maintained in a register. But, the employee has access to the details regarding the attendance on his/her profile.

39

Leave details It is mandatory for the employees to apply for the leave before hand and this can be done through First Capital. If the employee had taken a leave without being able to apply for it then it can be regularized, by entering the details regarding when and why leave was taken, after returning.

Employee Separation details Details regarding the termination of employee. Policies - Education Policy, Leave Policy, Relocation Policy, Related Employee Policy, Information Security Policy, Gender Harassment policy etc. These policies act as guidelines or plans of action for the employees and through First Capital these are easily accessible by them. It also consists of product policies which give a detailed idea about the product to the employee.

Important documents like Appointment letter, promotion letter, Form 16, telephone bills etc. Queries here the employees can post their queries which will be answered by the respective person within 2 days. Important documents can be dispatched and its status can be checked. Human Capital Knowledge Base which is accessible only by the Human Capital team.

40

CHAPTER -6 PERFORMANCE, REWARDS & SEPERATION

41

PERFORMANCE DEVELOPMENT SYSTEM

CONFIRMATION Once the employee is on-board, he/she has to undergo a six month probation period. Based upon the performance, the employee is given the status of a confirmed employee.

PERFORMANCE On completion of six months, the employee is asked to fill a probation appraisal form wherein the employee rates himself/herself followed by the supervisors rating. Depending upon the performance it is decided whether the employee can be confirmed or the probation period needs to be extended to three/six months or the employee needs to be terminated. This confirmation practice is strictly followed by the Human Capital team. It is an extremely time-taking process wherein no compromises are made.

Unicon Investment Solutions uses BALANCE SCORECARD for performance appraisal.

The balanced scorecard focuses on the measures that drive the employee performance. The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. Four Perspectives of the model are BUSINESS AND FINANCIAL MANAGEMENT CUSTOMER FOCUS PEOPLE / TEAM PROCESS / QUALITY IMPROVEMENT

42

The balanced scorecard approach can be used and applied at both the individual and the organizational level. It provides a balanced approach to evaluate the employees performance (for the purpose of performance appraisal) in a comprehensive manner rather than a partial view. In most of the organizations, the common practice of measuring the employee performance refers to only the comparison of their action plans and behaviours with the standards set i.e. without actually measuring the results of their actions like profits and increase in market share. This conventional practice can lead to the appraisal of most of the employees without any or little progress towards achieving the goals and objectives of the organization. Thus, the balanced scorecard gives the complete view of the employees and the organizational performance and helps to align the employee performance/action plans with the organizational goals.

Balance Scorecard at Unicon

Each of these perspectives consists of goals which have to be achieved by the employee. These goals are selected by the employees on the basis of his/her function. Each perspective has a minimum weightage of 15% and a maximum weightage of 50%.

Similarly, each goal has a minimum weightage of 15% and a maximum weightage of 50%. However, the weightage of goals should be equal to the total weightage assigned to each perspective. For example, an employee of the Real Estate team may assign the weightage in the following manner People / Team 30% Customer Focus 30% Process / Quality Improvement 25% Business and Financial Management 15 %

43

Now, the total weightage of goals falling under each perspective should be equal to the weightage assigned to the perspective.

ELIGIBILITY Any employee who has joined the organization before 30th June.

The appraisal is conducted once in a financial year. Promotions are also announced once a year.

PROCESS Self-rating Discussion with the supervisor feedback is sought by the employee. Supervisor rating

For Managerial positions and above, appraisal is done in a different manner which is called CDG or Career development Group There is a closed group discussion between the appraiser, appraisers supervisor and a third party [customer or functional senior] and accordingly performance appraisal is done.

RATING SCALE BT = Below target OT = On target meets target and at times exceeds target ET = Exceeds target consistently exceeds target and is best in the unit WOW = Walk on water significantly and consistently exceeds target and is best in the industry

44

REMUNERATION
Salary structure consists of the following Basic Pay House Rent Allowance Travel Allowance Personal Allowance Performance and profitability linked pay [PPLP]- 10% of the gross salary. For the sales profile, a target is set for the employee and if he/she achieves 70% of the target then PPLP can be availed by him/her.

Provident Fund [PF] is deducted from the Basic Pay. Minimum is 12 % and maximum is 25% which can be deducted from the Basic Pay. 12% is mandatory, beyond that it is voluntary and depends upon the employee if he/she wishes more to be deducted. Also 12% PF contribution is done by the employer in the employees account. This Amount can be availed by the employee once he/she leaves the company.

Gratuity is also a part of the compensation structure. This amount can be availed by the employee only once he/she has completed five years of his/her employment in the company. There is a remuneration grid which is followed by the Human Capital Team. This Grid is prepared according to the metro city, NCRs, Non-metro city etc. The remuneration of the employee is thus decided accordingly.

45

INCENTIVE FIRST INCENTIVE PLAN

Incentive is calculated on the basis of VS (Volume and spread) This is the profit which is gained. Delinquency Net Credit Loss

A grid of incentive is present which decides as to how much incentive has to be given and on what performance. First Incentive Plan consists of the following Target setting A target is set to be achieved. Breakeven Bonus When the branch starts to attain the profit target, the point is called breakeven and at this point of time, the employee gets the breakeven bonus. Profit-sharing Every branch is given a set target. Once the branch achieves more than the target, the profit earned is shared between the company and the employees of the branch who had worked in achieving the target. For example, if the branch is given a target to achieve a profit of one lakh. At the end of the year, it is successful in earning a profit of one lakh and twenty thousand. This twenty thousand is the amount which is more than the target. Therefore, this twenty thousand is further divided between the company and the employees of that branch in the ratio 7.5:2.5 respectively. First Trust According to the first trust policy, the employee receives the 100% of the incentive earned with a month lag along with that months salary. However, 20% of the incentive earned amount is debited into the first trust account of that employee by the company. This amount can be withdrawn by the employee once he/she leaves the company on the following basis

46

No. of years worked

Amount

Less than one year

the total amount accumulated in the account.

Between one three year

amount accumulated + interest earned on it

Between three five year

amount accumulated + interest earned on it +

80% of amount accumulated (contributed by the company)

the

More than five years

amount accumulated + interest earned on it +

100% amount accumulated (contributed by the company)

of

the

FRINGE BENEFITS

INSURANCE HOSPITAL AND ACCIDENTAL INSURANCE provided by ICICI prudential.

Hospital and Accidental Insurance is provided only once the probation period of the employee is complete and he/she gets the status of a confirmed employee.

47

REWARDS AND RECOGNITION

Unicon believes that in order to motivate the employees, having lunch with the entire team or sending motivating e-mails is not enough. To recognize and reward the team members, Unicon has various awards for excellence. The award categories are Passion to excel Innovation Care Teamwork Risk-adjusted returns Entrepreneurial spirit

PROCESS The performers in the team are identified. The nominations are classified as per the categories o Star of the month o Star of the Quarter o Team of the Quarter Entries have to be sent by the 7th of every month. The winning candidate receives a financial reward.

SEPARATION
The resignation of the employee has to be accepted by the supervisor or the Human Capital Team. Once the resignation is recorded, a mail is received by the supervisor, Human Capital Team, administrator and Accounts Team. It is mandatory for the confirmed employees to give a one month notice period or the organization may deduct one month salary in lieu of the notice period. A resignation letter must be submitted to

48

the organization. The company too is required to give one months period in case of termination or salary in lieu of notice period. There could be four types of separation Voluntary when the employee himself/herself decides to leave the organization. Involuntary when the employee is asked to leave the organization. End of Contract Death of the employee

Voluntary Separation can consist of the following reasons Health Career opportunities Absconding An employee, who does not report to duty without any intimation for three consecutive days, is termed as an abscondee. Every supervisor is supposed to inform the local Human Capital coordinator if an employee does not report to more than three days without intimation. Day three of absconding, the Human Capital Team intimates payroll to hold payment. Education Marriage Family Poor performance triggered If the employee feels that he/she is not performing as expected and is unable to achieve the targets, he/she can voluntarily decide to separate. Job Content

Involuntary Separation can consist of the following reasons Poor performance Integrity Disciplinary issue

49

Dual Employment- The employee is found to be employed in another organization as well. Integrity (Quest) when the company finds that the information provided by the employee at the time of joining is false. Consolidation When the organization decides to shut down a particular branch, the under-performers are asked to leave.

After stating the reason for separation, the employee is asked to fill the employee separation clearance form and the exit interview form. Turnaround time for clearance is 45 days Human Capital team checks for the settlements. After settlement, relieving letter is given to the employee. Once the employee receives the relieving letter, he/she can file for the withdrawal of the PF.

50

CHAPTER - 6 LITERATURE REVIEW

51

REVIEW OF LITERATURE
According to Stephen P. Robbins (2005) organizations today face a constantly changing environment which requires them to adapt and change. This, of course, means HRM is continuously being required to change also. Its a known fact that the HR function of many organizations serves as the voice of management in the sense that HR policies and procedures indicate how the organization views its employees. Therefore, HR practices speak volumes about the organization and its people.

Attributions made by employees about HR practices matter as much as the practices themselves in affecting employee satisfaction and organizational performance. HR practices are viewed differently by every employee and thus theres a difference in their satisfaction level also.

For years, HR researchers have argued that HR practices have a major impact on employee productivity and commitment because the way employees are treated directly impacts organizational performance. For example, Huselid, M. A. (1995), found that HR practices impact turnover, productivity and corporate financial performance. Pfeffer J. (1998) and Pfeffer J. and Veiga J. (1999) argue that organizational success is based on how employees are treated and that there are seven HR practices that together lead to organizational success, profitability and survival. Barney and Wright (1998) argue one way to gain a sustained competitive advantage is to find unique ways to attract retain and motivate employees; thus, their argument focuses on specific HR practices to obtain organizational competitive advantage. After going through several articles, the researcher found out that the following HR practices are of utmost important and should be prevalent in an organization in order to gain competitive advantage.

52

COMMUNICATION AND PARTICIPATION PRACTICES

This literature includes employee suggestion, participation in decision-making and information sharing. Open, responsive, two-way communications would appear extremely vital in order to retain the employee. According to Harris, J. and Brannick, J. (1999)he fastest way to transform a top performing staff into a group of disgruntled, discouraged job-seeking workers, is to shut them out of the loop of corporate information. Conversely, they say, the feeling that one is in the loop reinforces the employees connection to the organization. Employee suggestions are the formal attempt to elicit useful operating ideas from individuals or groups of employees. It is hoped that employee suggestions will yield cost savings, productivity gains, and higher overall profits, while rewarding participants with monetary compensation, recognition, and the satisfaction of seeing their ideas adopted (Mishra, Jitendra M. (1994)) Information sharing practices, like group meetings, to discuss timely issues and periodic project review aim at clarifying the expectations of the organization along with efforts made by the organization to listen to preoccupations and employee suggestions (Pare, Tremblay and Lalonde,(2000)Voluntary information sharing like financial and other corporate information by management through its internal communication is likely to reduce the cost of such information asymmetry and is likely to have positive effects on productivity and also it enhances employee commitment, and reduce turnover ( Kleiner, M. M. and Bouillon, M. L. (1991), which will result in a positive effects on productivity. In economic terms, sharing information on private information, which is usually restricted to owners and top management, is likely to lead to goal alignment and trust between employees and management. There is no magical formula for effective communication. It is clear, however, that the success of any communications practice will hinge upon managements commitment to and belief in the value of good and open communications. Lack of leadership will otherwise ensure that communications practices are dropped or not adopted as a part of the companys culture. Communications is, in the end, a general feature of a companys culture, and not reducible to particular practices, systems or interventions. Many successful companies are extremely effective in speaking with, and listening to, their employees.

53

TRAINING
Training activity remains a very large part of the HR practices of any successful organizations. It is a planned attempt by an organization to facilitate employee learning, which enhances individual competency by increasing employees skills and supporting career advancement. Organizational training activities are recognized as being able to become sources of competitive advantage through their impact on employees productivity and their contributions to business objectives. If training is to be connected with the individual and organizational performance, employees must be motivated and the continuous pursuit of development activities by individuals can be a key aspect in attaining training effectiveness in organizations (Noe, R. A. 1986).It has been estimated that organizations spend as much as $200 billion annually on workforce training (McKenna, 1990). In the 1970s, the average training expenditure per employee was approximately $75 to $100. There is considerable reason to believe that the significance of training for organizations will continue to increase in the future. Training can be a particularly strong retention tool when it is combined with measures designed to allow people to develop and progress within a company (Butteriss. M, (1999) )

PERFORMANCE MANAGEMENT
Performance Management has been practiced by numerous organizations since centuries and performance appraisal system has been debated by many, however, overall, it is viewed that performance appraisal is an inseparable part of organizational life. The article by Longenecker, C., & Fink, L. (1999), cited several reasons that formal performance appraisals are to stay in organizations. According to them, formal appraisals are required to justify a wide range of human resource decisions such as pay raises, promotions, demotions, terminations, etc. It is also required to determine employees training needs. The authors also cited a study on high performance organizations that the practice of performance appraisal was cited as one of the top ten vehicles for creating competitive advantage.

54

However, sufficient caution should be observed in implementing appraisal system. Ineffective appraisal system can bring many problems including low morale, decreased employee productivity, a lessening of an employees enthusiasm and support for the organization. Traditionally, performance management comprised of a formal process of goal setting, performance appraisal and feedback. The information is used to determine pay and promotion as well as establish training and development needs. Moreover, it is argued that company goals, on which job goals and standards are established and measured, influence the individuals job analysis and job description. Performance management aligns the goals of individual members to those of the organization with which they are associated (Meyer et al, 2003). It requires clearly articulated and well communicated strategic goals for the organization as a whole. As with other retention /satisfaction practices, employee perceptions about the performance appraisal system can have an important impact on their decision to stay with a company. Most importantly, effective performance management requires a system that is fair, and that employees trust as being fair, both in terms of procedure and in terms of the potential benefits arising from such evaluations. Indeed, fairness and openness about the evaluation process are of paramount importance when performance management is tied to specific rewards or advancement.

COMPENSATION

AND

BENEFITS/

REWARDS

AND

RECOGNITION PRACTICES
In contemporary times, for every employee this component surely is of utmost important to satisfy and retain the employees. These include compensation, rewards both monetary and non-monetary benefits (e.g., medical and health benefits), performance based compensation, employee recognition etc., to name a few. While there is a general agreement about the importance of competitive compensation for employee satisfaction , there is also a growing consensus that competitive, or even generous compensation will not single-handedly guarantee that a company will be able to keep its most valuable employees. Lawler, E. E. (1990), states that the key issue in

55

retention is the amount of total compensation relative to levels offered by other organizations. According to him organizations that have high levels of compensation, will have lower turnover rates and larger numbers of individuals applying to work for them. Furthermore, he argues, high wage workplaces may create a culture of excellence. Retention based on the principle of compensation-based commitment (Meyer, Opperman and C Dyrbye, 2003,)is of course sensitive to changes in compensation within the company. Employers that base their retention on compensation-based commitment will always be vulnerable to the possibility that their competitors will be able to offer better wages and thus lure away their employees. Smith (2001) argues that money gets employees in the door, but it does not keep them there. Money can be classified as a satisfier, and it is a necessary but insufficient factor in employee retention, while Harris and Brannick (1999) agree that money is not the primary motivator for employees. In fact, many companies have done a very good job of retaining their employees without any pay-based retention incentives (Pfeffer and Veiga, 1999). Successful retention under such circumstances seems to depend on a wide number of factors. Clearly, the existence of other HR practices is also a key to retention, and there is a great deal of interdependence between compensation and other practices. Most innovation in the area of benefits appears to be focused on the concept of flexibility. Many companies are responding to the increasingly diverse needs of their employees by introducing a greater element of choice in the range of benefits from which their workers can choose. Thus, the introduction of flexibility in benefits packages can be a key ingredient in ensuring good retention, particularly since it affords greater responsiveness to the specific needs and circumstances of individuals (Smith, 2001). The range of benefits offered by many companies is too broad not limiting to health, dental, vision, vacation, parental/family leave, disability, retirement/pension, employee assistance programs (EAPs), life insurance, extended leave, etc. Rotundo, M. (2002), argues that reward systems ought to be a significant sphere of innovation for employers. The increasing diversity of the workforce, she says, suggests the need for more creative approaches to tailoring the right rewards to the right people. It would, however, be

56

impossible to list all of the various types of recognition and rewards that companies actually give their workers. It is clear that recognition and rewards as part of a more comprehensive effort at keeping workers or adopting good workplace practices can contribute to increased retention. Recognition and rewards in some ways includes a diverse range of formal and informal, financial and non-financial, incentives given to individual employees, groups of employees or to entire staff. They come in all shapes and sizes: employee of the month awards (e.g., gift certificates, recognition plaques), company-sponsored sports teams, company parties, prizes, clothing, etc. They are often incorporated into a companys overall HR policy, but are just as often awarded as the need arises and at the discretion of the managers or team supervisors. Smith M. K. (2001), who also includes rewards and recognition in the list of high-retention practices, also argues that incentives and rewards can turn out to be counterproductive. Too many gimmicks and too much extrinsic motivation will eventually harm the employees creativity and initiative. Used incorrectly, rewards, recognition, praise, and bonuses can be manipulative and controlling and amount to little more than a bribe for behavior. Keeping in mind the entire review of literature, the researcher has conducted a study of HR Practices at Fullerton India Credit Company and has tried to find out the employee satisfaction level with respect to these practices.

57

CHAPTER -7 CONCLUSION & SUGGESTIONS

58

Conclusion and suggestion

Strategies for effective Recruitment and selection process:

Effective recruitment and selection process can give an organization a competitive edge over its competitors by saving both time and cost. Unicon Investment Solutions recruits major part of its employee form external source, especially form Newspaper Ads which cost them much. However, we have recommended some ideas that might help them to improve their recruitment and selection process: Outsourcing firm:

The company may draw required personnel from outsourcing firms. The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization as per their needs. Poaching/Raiding:

Buying talent (rather than developing it) is the latest method being followed by the organizations today.Poa ching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about.

59

Some other recommendations about Recruitment and Selection process of Unicon are as follows:

The application form of Unicon is time consuming and isnt easy to complete, so it should be easy to complete.

Several days orientation program should be undertaken to provide a clear picture about the organization, its culture, rules & regulation, employees and management body.

They should exercise their recruitment policy and should focus on recruiting the best potential people.

It should ensure that every applicant and employee is treated equally with dignity and respect.

It should also focus to aid and encourage employees in realizing their full potential.

Selection should be made based on transparency, task oriented and merits.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

Recruitment and selection policy should abide by public policy and legislation on hiring and employment relationship.

60

Conclusion:
The globalization of business is forcing managers to struggle with complex issues as they seek to gain or sustain a competitive advantage. They enjoy outstanding recruitment and selection practices in each successful employee hired. So, their hires are better fits in their work groups. They also share values, traits and behaviors that are highly regarded for success in the organization. They reach the qualified applicants through the use of innovative recruiting channels. Traditionally, employers have focused on assessment methods that are highly correlated to the content of the job, hence most able to predict ability to perform the required duties and tasks. However, organizations have come to realize that success of the candidate hinges on more than just the ability to carry out tasks and duties well. The foundation of superior performance lies in the synergy created by a close fit with the work group and with the organizations culture. No process is complete without an evaluation of its success.

61

References
Websites:

WWW.Uniconindia.in
WWW.Uniconproperty.com

http://www.glresources.com/
http://www.human-resources.org http://www.hrmguide.net http://www.safehr.com/links.html

Books:
Mishra, Jitendra M. (1994), Employee suggestion programs in the health care field: the rewards of involvement, Public Personnel Management.

Malhotra K Naresh , Marketing Research: An applied Orientation (2006), 5th Edition.

Robbins P Stephens , Organizational Behavior, Prentice-hall Of India (2005),

11th edition.

Pfeffer, J. 1998. The human equation: Building profits by putting people first. Boston: H BS Press.

Bailey, T. (1993), Discretionary Effort and the Organization of Work: Employee Participation and Work Reform Since Hawthorns, Working aper, Columbia University.

Butteriss, M. (1999), Help Wanted: The Complete Guide to HR for Canadian Entrepreneurs, Wiley, Toronto

62

63