Recruitment, Selection & Performance Appraisal in Banks

RECRUITMENT

DEFINATION

 According to Edwin B. Flippo, “Recruitment is the process of

searching the candidates for employment and stimulating them to apply
for jobs in the organization.”

MEANING / CONCEPT

Recruitment refers to the process of finding possible candidates for a job or

function, undertaken by recruiters. It may be undertaken by an employment agency
or a member of staff at the business or organization looking for recruits. Either way
it may involve advertising, commonly in the recruitment section of a newspaper or
in a newspaper dedicated to job adverts. Employment agencies will often advertise
jobs in their windows. Posts can also be advertised at a job centre if they are
targeting the unemployed.
Suitability for a job is typically assessed by looking for skills, e.g.
communication skills, typing skills, computer skills. Evidence for skills required
for a job may be provided in the form of qualifications (educational or
professional), experience in a job requiring the relevant skills or the testimony of
references. Employment agencies may also give computerized tests to assess an
individual's off hand knowledge of software packages or typing skills. At a more
basic level written tests may be given to assess numeric and literacy. A candidate
may also be assessed on the basis of an interview. Sometimes candidates will be
requested to provide a résumé (also known as a CV) or to complete an application
form to provide this evidence.

OBJECTIVES / PURPOSE / IMPORTANCE

 1. Attract and encourage more and more candidates to apply in the
organization.

2. to attract people with multi-dimensional skills and experiences that suit the
present and future organizational strategies

3. Create a talent pool of candidates to enable the selection of best candidates

for the organization

4. Determine present and future requirements of the organization in

conjunction with its personnel planning and job analysis activities.

5. Recruitment is the process which links the employers with the employees.

6. to induct outsiders with a new perspective to lead the company

7. to infuse fresh blood at all levels of the organization

8. to develop an organizational culture that attracts competent people to the

company

9. to search or head hunt people whose skills fit the company’s values

10. to devise methodologies for assessing psychological traits

11.to seek out non-conventional development grounds of talent

12.to search for talent globally and not just within the company

13.to anticipate and find people for positions that does not exist yet

14.Meet the organizations legal and social obligations regarding the

composition of its workforce.

RECRUITMENT PROCESS
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations. Recruitment
process involves a systematic procedure from sourcing the candidates to arranging
and conducting the interviews and requires many resources and time.
A general recruitment process is as follows:

1. Identifying the vacancy:

The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:

• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required

2. Preparing the job description and person specification.

3. Locating and developing the sources of required number and type

of employees (Advertising etc).

4. Short-listing and identifying the prospective employee with

required characteristics.

5. Arranging the interviews with the selected candidates.

6. Conducting the interview and decision making

The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.

SOURCES OF RECRUITMENT
Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources
within the organization itself (like transfer of employees from one department to
other, promotions) to fill a position are known as the internal sources of
recruitment. Recruitment candidates from all the other sources (like outsourcing
agencies etc.)are known as the external sources of recruitment.

Sources of Recruitment

INTERNAL SOURCES OF RECRUITMENT

1. TRANSFERS
The employees are transferred from one department to another according to their
efficiency and experience.

2. PROMOTIONS
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.

3. Upgrading& Demotion
Others are Upgrading and Demotion of present employees according to their
performance.

4. Retired and Retrenched employees

Retired and Retrenched employees may also be recruited once again in case of shortage
of qualified personnel or increase in load of work. Recruitment such people save time and
costs of the organizations as the people are already aware of the organizational culture
and the policies and procedures.

5. Dependents and Relatives of Deceased employees

The dependents and relatives of Deceased employees and Disabled employees are also
done by many companies so that the members of the family do not become dependent on
the mercy of others.
Advantages: -
1. Motivated employees and Higher morale
2. Higher probability of success
3. Industrial Peace
4. Relatively inexpensive
5. Training and skill enhancement

Disadvantages: -
1. Reduced scope for fresh talent.
2. Employees may become lethargic if they are sure of time bound promotions
3. Spirit of competition may be hampered
4. Frequent transfers of employees may reduce the overall productivity of the
organization
5. Political infighting for promotion
EXTERNAL SOURCES OF RECRUITMENT
1. PRESS ADVERTISEMENTS:
Advertisements of the vacancy in newspapers and journals are a widely used
source of recruitment. The main advantage of this method is that it has a wide
reach.

2. EDUCATIONAL INSTITUTES:
Various management institutes, engineering colleges, medical Colleges etc. are a
good source of recruiting well qualified executives, engineers, medical staff etc.
They provide facilities for campus interviews and placements. This source is
known as Campus Recruitment.

3. PLACEMENT AGENCIES:
Several private consultancy firms perform recruitment functions on behalf of
client companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO
(Recruitment Process Outsourcing)

4. EMPLOYMENT EXCHANGES:
Government establishes public employment exchanges throughout the country.
These exchanges provide job information to job seekers and help employers in
identifying suitable candidates.

5. LABOUR CONTRACTORS:
Manual workers can be recruited through contractors who maintain close contacts
with the sources of such workers. This source is used to recruit labor for
construction jobs.

6. UNSOLICITED APPLICANTS:
 Many job seekers visit the office of well-known companies on their own. Such
callers are considered nuisance to the daily work routine of the enterprise. But can
helping creating the talent pool or the database of the probable candidates for the
organization.

6. EMPLOYEE REFERRALS / RECOMMENDATIONS:

Many organizations have structured system where the current employees of the
organization can refer their friends and relatives for some position in their
organization. Also, the office bearers of trade unions are often aware of the
suitability of candidates. Management can inquire these leaders for suitable jobs. In
some organizations these are formal agreements to give priority in recruitment to the
candidates recommended by the trade union.

7. RECRUITMENT AT FACTORY GATE:

Unskilled workers may be recruited at the factory gate these may be employed
whenever a permanent worker is absent. More efficient among these may be
recruited to fill permanent vacancies.

Advantages: -
1. Qualified Personnel
2. Wider Choice
3. Fresh Talent
4. Competitive Spirit

Disadvantages: -

1. Dissatisfaction amongst existing staff

2. Lengthy process (Increased adjustment period)
3. Costly Process
4. Uncertain Process

Selection
DEFINATION
Selection is defined as the process of differentiating between
applicants in order to identify (and hire) those with a greater
likelihood of success in a job.

The aim of selection is to find a person who accepts the position and who
gives satisfactory service and performance in the long term. The system approach
starts from the position of well defined job and clearly analyzes person’s
specifications.
Selection is not just a question of interviewing, although it is most popular
device in use. Selection is very much a process of deselecting that is gradually
eliminating candidates until finally one is left on the list for a vacancy. Some
methods are more reliable than other but, to large extent. Selection is about trying
to minimize risk and maximizing certainty of making of the right decision.

Starting from the position where the recruitment process as produced a no of

applicants, the important steps as follows:

 Short listing the candidates for the next stage.

 Setting up tests for the short listed candidate some times in the form of an
assessment.

 Interviewing the candidates and allowing the candidates to interview the selectors.

 Choosing the successful candidates.

 Obtaining references.

 Offering the position, confirming in writing and gaining acceptance.

 Organizing the induction process.

 Evaluating the results.

SELECTION PROCESS
Selection is a long process, commencing from the preliminary interview of the
applicants and ending with the contract of employment.

The following chart gives an idea about selection process: -

Environment factor affecting selection: -

Selection is influenced by several factors. More prominent among
them are supply and demand of specific skills in the labour market,
unemployment rate, labour- market conditions, legal and political
considerations, company’s image, company’s policy, human resources
planning and cost of hiring. The last three constitute the internal
environment and the remaining form the external environment of
selection process.

STEP 1: -
PRELIMINARY INTERVIEW
The applicants received from job seekers would be subject to
scrutiny so as to eliminate unqualified applicants. This is usually
followed by a preliminary interview the purpose of which is more or
less the same as scrutiny of application, that is, eliminate of
unqualified applicants. Scrutiny enables the HR specialists to
eliminate unqualified jobseekers based on the information supplied in
their application forms.
Preliminary interview, on the other hand, helps reject misfits
for reason, which did not appear in the application forms. Besides,
preliminary interview, often called ‘courtesy interview’, is a good
public relation exercise.

STEP 2: -

SELECTION TEST:
Job seekers who pass the screening and the preliminary interview
are called for tests. Different types of tests may be administered,
depending on the job and the company. Generally, tests are used to
determine the applicant’s ability, aptitude and personality.

The following are the type of tests taken:

1. Ability tests
2. Aptitude test: -
Forms of aptitude test:
i. Mental or intelligence tests:
ii. Mechanical aptitude tests:
iii. Psychomotor or skills tests:
4. Intelligence test:

5. Interest Test:
6. Personality Test:

7. Projective Test

8. General knowledge Test:

9. Perception Test:

10. Graphology Test

11. Polygraph Test:

12. Medical Test

STEP 3: -
INTERVIEW:
The next step in the selection process is an interview. Interview is
formal, in-depth conversation conducted to evaluate the applicant’s
acceptability. It is considered to be excellent selection device. It is
face- to-face exchange of view, ideas and opinion between the
candidates and interviewers. Basically, interview is nothing but an
oral examination of candidates. Interview can be adapted to
unskilled, skilled, managerial and profession employees.
Objectives of interview: -

Interview has at least three objectives and they are as follows: -

1) Helps obtain additional information from the applicants

2) Facilitates giving general information to the applicants such as

company policies, job, products manufactured and the like

3) Helps build the company’s image among the applicants.

Types of interview:-
 Interviews can be of different types. There interviews employed by the
companies.

Following are the various types of interview: -

I. Informal Interview:

II. Formal Interview:

III. Non-directive Interview:

IV. Depth Interview:

V. Stress Interview:

VI. Group Interview:

VII. Panel Interview:

VIII. Sequential Interview:

IX. Structures Interview:

X. Unstructured Interview:

XI. Mixed Interview:

XII. Impromptu Interviews:

XIII. Dinner Interviews:

XIV. Telephone Interviews:

XV. Second Interviews:

STEP 4: -
REFERENCE CHECK:-
Many employers request names, addresses, and telephone numbers of references
for the purpose of verifying information and perhaps, gaining additional
background information on an applicant. Although listed on the application form,
references are not usually checked until an applicant has successfully reached the
fourth stage of a sequential selection process. When the labour market is very tight,
organizations sometimes hire applicants before checking references.

Previous employers, known as public figures, university professors, neighbours or

friends can act as references. Previous employers are preferable because they are
already aware of the applicant’s performance. But, the problem with this reference
is the tendency on the part of the previous employers to over-rate the applicant’s
performance just to get rid of the person.

Organizations normally seek letters of reference or telephone references. The latter

is advantageous because of its accuracy and low cost. The telephone reference also
has the advantage of soliciting immediate, relatively candid comments and attitude
can sometimes be inferred from hesitations and inflections in speech.

It may be stated that the information gathered through references hardly influence
selection decisions. The reasons are obvious:

1. The candidate approaches only those persons who would speak

well about him or her.

2. People may write favorably about the candidate in order to get

rid of him or her.

3. People may not like to divulge the truth about a candidate, lest it
might damage or ruin his/her career.

STEP 5: -
SELECTION DECISION:-
After obtaining information through the preceding steps, selection
decision- the most critical of all the steps- must be made. The other
stages in the selection process have been used to narrow the number
of the candidates. The final decision has to be made the pool of
individuals who pas the tests, interviews and reference checks.
The view of the line manager will be generally considered in the final
selection because it is he/she who is responsible for the performance
of the new employee. The HR manager plays a crucial role in the
final selection.

STEP 6: -
PHYSICAL EXAMINATION: -
After the selection decision and before the job offer is made, the
candidate is required to undergo a physical fitness test. A job offer
is, often, contingent upon the candidate being declared fit after the
physical examination. The results of the medical fitness test are
recorded in a statement and are preserved in the personnel records.
There are several objectives behind a physical test. Obviously, one
reason for a physical test is to detect if the individual carries any
infectious disease. Secondly, the test assists in determining whether
an applicant is physically fit to perform the work. Thirdly, the
physical examination information can be used to determine if there
are certain physical capabilities, which differentiate successful and
less successful employees. Fourth, medical check-up protects
applicants with health defects from undertaking work that could be
detrimental to them or might otherwise endanger the employer’s
property. Finally, such an examination will protect the employer from
workers compensation claims that are not valid because the injuries
or illness were present when the employee was hired.

STEP 7: -
JOB OFFER: -
The next step in the selection process is job offer to those
applicants who have crossed all the previous hurdles. Job offer is
made through a letter of appointed. Such a letter generally contains a
date by which the appointee must report on duty. The appointee must
be given reasonable time for reporting. Thos is particularly necessary
when he or she is already in employment, in which case the appointee
is required to obtain a relieving certificate from the previous
employer. Again, a new job may require movement to another city,
which means considerable preparation, and movement of property.
The company may also want the individual to delay the date of
reporting on duty. If the new employee’s first job upon joining the
company is to go on company until perhaps a week before such
training begins. Naturally, this practice cannot be abused, especially
if the individual is unemployed and does not have sufficient finances.
Decency demands that the rejected applicants be informed about
their non-selection. Their applicants may be preserved for future use,
if any. It needs no emphasis that the applications of selected
candidates must also be preserved for the future references.

STEP 8: -
CONTRACT OF EMPLOYMENT: -
After the job offer has been made and candidates accept the
offer, certain documents need to be executed by the employer and the
candidate. One such document is the attestation form. This form
contains vital details about the candidate, which are authenticated
and attested by him/her. Attestation form will be a valid record for
the future reference.

There is also a need for preparing a contract of employment. The

basic information that should be included in a written contract of
employment will vary according to the level of the job, but the
following checklist sets out the typical headings:

1. Job title
2. Duties, including a parse such as “The employee will perform such
duties and will be responsible to such a person, as the company may
from time to time direct”.
3. Date when continuous employment starts and the basis for
calculating service.
4. Rate of pay, allowance, overtime and shift rates, method
of payments.
5. Hours of work including lunch break and overtime and
shift arrangements.
6. Holiday arrangements:
i) Paid holidays per year.
ii) Calculation of holiday pay.
iii) Qualifying period.
iv) Accrual of holidays and holiday pay.
v) Details of holiday year.
vi) Dates when holidays can be taken.
vii) Maximum holiday that can be take at any one time.
viii) Carry over of holiday entitlement.
ix) Public holidays.
7. Length of notice due to and from employee.
8. Grievances procedure (or reference to it).
9. Disciplinary procedure (or any reference to it).
10. Work rules (or any reference to them).
11. Arrangements for terminating employment.
12. Arrangements for union membership (if applicable).
13. Special terms relating to rights to patent s and designs,
confidential information and restraints on trade after termination of
employment.
14. Employer’s right to vary terms of the contract subject to proper
notification being given.
Alternatively called employment agreements or simply bonds,
contracts of employment serve many useful purposes. Such contracts
seek to restrain job-hoppers, to protect knowledge and information
that might be vital to a company’s healthy bottom line and to prevent
competitors from poaching highly valued employees.
Great care is taken to draft the contract forms. Often, services
of law firms (prominent firms in this category include Mulla, Craigie,
Blunt and Caroe, Crawford Bailey, Amarchand Mangaldas Hiralal,
etc.) are engag4d to get the forms drafted and finalized.
Most employers insist on agreements being signed by newly
hired employees. But high turnover sectors such as software,
advertising and media are more prone to use contracts.
The drawback with the contracts is that it is almost to enforce
them. A determined employee is bound to leave the organisation,
contract or no contract. The employee is prepared to pay the penalty
for breaching the agreement or the new employer will provide
compensations. It is the reason that several companies have scrapped
the contracts altogether.

STEP 9: -
CONCLUDING THE SELECTION PROCESS: -
Contrary to popular perception, the selection process will not end
with executing the employment contract. There is another step –
amore sensitive one reassuring those candidates who have not
selected, not because of any serious deficiencies in their personality,
but because their profile did not match the requirement of the
organisation. They must be told that those who were selected were
done purely on relative merit.

STEP 10: -
EVALUATION OF SELECTION PROGRAMME: -
The broad test of the effectiveness of the selection process is
the quality of the personnel hired. An organisation must have
competent and committed personnel. The selection process, if
properly done, will ensure availability of such employees. How to
evaluate the effectiveness of a selection programmed? A periodic
audit is the answer. People who work independent of HR department
must conduct audit. The table below contains an outline that
highlights the areas and questions to be covered in a systematic
evaluation.

Difference (Recruitment and Selection)

1.) Recruitment is the process of searching for prospective candidates
and motivating them to apply for job in the organisation
Whereas, selection is a process of choosing most suitable candidates
out of those, who are interested and also qualified for job.
2.) In the recruitment process, vacancies available are finalized,
publicity is given to them and applications are collected from
interested candidates. In the selection process, available applications
are scrutinized. Tests, interview and medical examination are
conducted in order to select most suitable candidates.
3.) In recruitment the purpose is to attract maximum numbers of
suitable and interested candidates through applications.
In selection process the purpose is that the best candidate out of those
qualified and interested in the appointment.
4.) Recruitment is prior to selection. It creates proper base for actual
selection. Selection is next to recruitment. It is out of candidates’
available/interested.
5.) Recruitment is the positive function in which interested
candidates are
encouraged to submit application.
Selection is a negative function in which unsuitable candidates are
eliminated and the best one is selected.
6.) Recruitment is the short process. In recruitment publicity is given
to
vacancies and applications are collected from different sources
Selection is a lengthy process. It involves scrutiny of applications,
giving
tests, arranging interviews and medical examination.
7.) In recruitment services of expert is not required Whereas in
selection, services of expert is required
8.) Recruitment is not costly. Expenditure is required mainly for
advertising the posts.
Selection is a costly activity, as expenditure is needed for testing
candidates and conduct of interviews.

PERFORMANCE APPRAISAL
INTRODUCTION
Performance appraisal is a systematic and objective way of evaluating both
work related behavior and potential of employees.
OR
Performance Appraisal is the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for
future development. It consists of all formal procedures used in the working
organizations to evaluate personalities, contributions and potentials of employees.

Features of performance appraisal

 It is systematic process, essentially involving three steps: set work

standards, assess employee's performance relative to these standards, and
offer feedback to the employee so that he or she can eliminate deficiencies
and improve performance

 The appraisal is carried out periodically according to a definite plan

 It is not a past oriented activity. The intention is not to put poor performers
in a spot. Instead, it shows employees where things have gone wrong, how
to set things in order and deliver superior performance using their potential
fully

 The focus of appraisals is on employee growth development. It forces

managers to be coaches rather than judges.

OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored,
and used for several purposes .The main purposes of employee assessment are

1. To effect promotions based on competence and performance.

2. To confirm the services of probationary employees upon their completing
the probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay
scales have not been fixed.
5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for
the purpose of their development.
6. To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves
understanding of personal goals and concerns. This can also have the effect
of increasing the trust between the rater and the rate.
7. Finally, performance appraisal can be used to determine whether HR
programmes such as selection, training, and the transfers have been effective
or not.

Broadly, performance appraisal serves four objectives –

(I) developmental uses,

(ii) administrative uses/decisions,

(iii) organizational maintenance/objectives, and

(iv) documentation purposes. Table outlines these and specific uses more clear.
 GENERAL SPECIFIC PURPOSE
APPLICATIONS
1. DEVELOPMENTAL IDENTIFICATION OF INDIVIDUAL NEEDS
USES PERFORMANCE FEEDBACK
DETERMINING TRANSFERS AND JOB
ASSIGNMENTS
IDENTIFICATION OF INDIVIDUAL
STRENTHS AND DEVELOPMENTAL
NEEDS
2.ADMINISTRATIVE SALARY
USES/DECISIONS PROMOTION
RETENTION OR TERMINATION
RECOGNITION OF INDIVIDUAL
PERFORMANCE
LAY-OFFS
IDENTIFICATION OF POOR
PERFORMERS
3.ORGANISATIONAL HR PLANNING
MAINTAINANCE/OBJ DETERMINIG ORGANISATION TRAINING
ECTIVES NEEDS
EVALUATION OF ORGANISATIONAL
GOAL ACHEIVEMENT
INFORMATION FOR GOAL
IDENTIFICATION
EVALUATION OF HR SYSTEMS
REINFORCEMENT OF ORGANISATIONAL
DEVELOPMENT NEEDS
4.DOCUMENTATION CRITERIA FOR VALIDATION RESEARCH
DOCUMENTATION FOR HR DECISIONS
HELPING TO MEET LEGAL
REQUIREMENTS

Advantages of performance appraisal

I. IMPROVING PERFORMANCE:
II. MAKING CORRECT DECISIONS:
III. ENSURING LEGAL COMPLIANCE:
IV. MINIMISING JOB DISSATISFACTION AND TURNOVER:
V. CONSISTENCY BETWEEN ORGANISATIONAL STRATEGY AND
BEHAVIOUR:

Disadvantages of performance appraisal

I. One Sided Input

II. Forms Only Give Quantitative or Qualitative Data
III. Time Consuming
IV. Once-a-Year Raises
V. Inconsistent Message

Steps for developing a systematic performance appraisal

A five-step approach to conducting a performance appraisal is recommended.

1. Identify key performance criteria

Development of key performance criteria should be based on a comprehensive job

description and undertaken in consultation with workers. Four dimensions of
performance can be considered:

 Competencies
Knowledge, skills, and abilities relevant to performance
 Behaviors
Specific actions conducted and / or tasks performed
 Results / outcomes
Outputs, quantifiable results, measurable outcomes and achievements, objectives
attained
 Organizational citizenship behaviours
Actions that are over and above usual job responsibilities

2. Develop appraisal measures

In order to obtain accurate and valid performance appraisals, appraisal measures
should be tailored to the specific job or “job family” (i.e., groups of similar jobs).
An evaluation of factors in the work environment which help or hinder
performance is also recommended. This ensures that realistic expectations are set
for workers’ performance, and is also likely to increase the perceived fairness and
acceptability of performance appraisals.

3. Collect performance information from different sources

Traditionally, it has been the sole responsibility of managers / supervisors to assess

performance. However, other organizational members (e.g., clients, coworkers,
subordinates) can be a valuable source of information as they are likely to have
exposure to different aspects of a worker’s performance.

Collecting information from multiple sources can increase the accuracy of

performance evaluation (i.e., reduce bias), and increase workers’ perceptions of
fairness.

4. Conduct an appraisal interview

The two central purposes of the appraisal interview are to:

1. Reflect on past performances to identify major achievements, areas for further

improvement, and barriers / facilitators to effective performance

2. Identify goals and strategies for future work practice.

The appraisal interview should be a constructive, two-way exchange between the
supervisor and worker, with preparation for the interview done by both parties
beforehand.

5. Evaluate the appraisal

The performance appraisal process should undergo regular review and

improvement. For example, focus groups or surveys could be conducted to gauge
workers’ perceptions of the appraisal process. A successful performance appraisal
process should demonstrate a change in both the ratings of workers’ performance
and aspects of the work environment that impact upon work performance.
 Traditional Method
1. CONFIDENTIAL REPORT
Traditional form of appraisal used in most government organizations.

Confidential report is a report prepared by the employee's immediate superior.

It covers the strengths and weaknesses, main achievements and failures,
personality and behavior of the employee.

 It is a descriptive appraisal used for promotions and transfers of employees.

2. FREE FORM/ESSAY METHOD

The evaluator writes a short essay on the employee's performance on the basis of
overall impression.

It can provide a good deal of information about the employee especially if the
evaluator is asked to give examples of each one of his judgments.

This method may be appropriate for assessing senior executives where the
number involved is small.
3. STRAIGHT RANKINGMETHOD
The evaluator assigns relative ranks to all the employees in the same work unit
doing the same job. Employees are ranked from the best to the poorest on the basis
of overall performance.

The relative position of an employee is reflected in his numerical rank.

It is time saving and a comparative evaluation technique of appraisal.

4. PAIRED COMPARISIONS METHOD

Each employee is compared with all the others in pairs one at a time. The
number of times an employee is judged better than the others determines
his rank.

Comparison is made on the basis of overall performance. The number of

comparisons to be made can be decided on the basis of the following
formula: N (N-1) / 2, where N is the number of persons to be compared.

5. FORCED DISTRIBUTION METHOD

The rate is required to distribute his ratings in the form of a normal frequency
distribution.

The purpose is to eliminate the rater's bias of central tendency. Here also ranking
technique is used.

This method is highly simple to understand and easy to apply.

It helps to reduce bias involved in straight ranking and paired comparisons.
6. GRAPHIC RATING SCALES
It is a numerical scale indicating different degrees of a particular trait.

The rate is given a printed form for each employee to be rated. The form
contains several characteristics relating to the personality and performance of
employees.

The rater records his judgment on the employee's trait on the scale. The
numerical points given to an employee are added up to find out his overall
performance.

An illustration of graphic rating scale:

7. CHECKLISTMETHOD
It is a list of statements that describe the characteristics and performance of
employees on the job.

The rater checks to indicate if the behavior of an employee is positive or

negative to each statement. The performance of an employee is rated on the basis
of number of positive checks.
8. CRITICAL INCIDENTS METHOD

The supervisor keeps a written record of critical (either good or bad) events and
how different employees behaved during such events.

The rating of an employee depends on his positive / negative behavior during

these events.

This method helps to avoid vague impressions and general marks as the rating is
based on actual records of behavior / performance.

The illustration is given in the next slide.

9. GROUP APPRAISAL METHOD
A group of evaluators assesses employees. This group consists of the immediate
supervisor of the employee, other supervisors having close contact with the
employee's work, head of the department and a personnel expert.

The group determines the standards of performance for the job, measures actual
performance of an employee analyses the causes of poor performance and offers
suggestions for improvements in future.

10. FIELD R EVIEW METHOD

A training officer from the personnel department interviews line supervisors to
evaluate their respective subordinates. The interviewer prepares in advance the
questions to be asked.

By answering these questions a supervisor gives his opinions about the level of
performance of his subordinate, the subordinate's work progress, his strengths and
weaknesses, promotion potential, etc.
 Modern Method

1. ASSESSMENT CENTRE METHOD

Assessment centre is a group of employees drawn from different work units.

These employees work together on an assignment similar to the one they would
be handling when promoted.

Evaluators observe and rank the performance of all the participants.

It generally measures interpersonal skills, communicating ability, ability to plan

and organize etc.

2. HUMAN RESOURCE A CCOUNTINGMETHOD

Performance is judged in terms of costs and contributions of employees.

Costs of human resources consist of expenditure on HR planning, recruitment,

selection, induction, training, compensation, etc.

Contribution of human resources is the money value of labor productivity or

value added by human resources.

Difference between cost and contribution will reflect the performance of

employees.
3. BEHAVIOURLY ANCHORED R ATING SCALE (BARS)
Combines graphic rating scales with critical incidents method.

Descriptions of various degrees of behavior relating to specific performance

dimensions.

The rater records observable job behavior of an employee and compares these
observations with BARS.
4. APPRAISAL BY MBO (Management by Objectives)

The concept of management by objectives (MBO) was developed by

PeterDrucker in 1954.

A process whereby the superior and subordinate managers of an organization

jointly identify its common goals, define each individual's major areas of
responsibility in terms of results expected of him and use these measures as guides
for operating the unit and assessing the contributions of each of its members.

5.360 DEGREE FEEDBACKS

360-degree feedback is feedback that comes from all around an employee. "360"
refers to the 360 degrees in a circle, with an individual figuratively in the center of
the circle. Feedback is provided by subordinates, peers, and supervisors.

The results from 360-degree feedback are often used by the person receiving the
feedback to plan training and development. Results are also used by some
organizations in making administrative decisions, such as pay or promotion.
SUGGESTIONS FOR IMPROVED PERFORMANCE APPRAISALS

 Basing appraisals on accurate and current job descriptions

 Ensuring that appraisers have adequate knowledge and direct experience of the
employee’s performance

 Providing ratings via aggregated anonymous feedback when multiple sources

of information are used

 Incorporating performance appraisals into a formal goal setting system

 Offering adequate support and assistance to employees such as professional

development opportunities in order to improve their performance

 Conducting appraisals on a regular basis (at least two times a year) rather than
annually.
 KOTAK MAHINDRA BANK

ABOUT THE BANK

KOTAK MAHINDRA Bank is a young and dynamic bank, with a youthful and
enthusiastic team determined to accomplish the vision of becoming a world-class
Indian bank.
KOTAK MAHINDRA’s business philosophy is based on four core values -
Customer Focus, Operational Excellence, Product Leadership and People. They
believe that the ultimate identity and success of bank will reside in the exceptional
quality of people and their extraordinary efforts.
For this reason, they are committed to hiring, developing, motivating and retaining
the best people in the industry.

Why KOTAK MAHINDRA is better …?

1. Investment returns: investment returns and business growth provided by KOTAK
MAHINDRA is
validated by Bajaj Capital report. KOTAK MAHINDRA pacifies the need of
invertors up to healthy level and makes the strong relationship with them.
2. Financial Background and Experience: KOTAK MAHINDRA existing in the
market since 1977. It has Avery handsome experience in the field of finance
because it completely involved in finance Sector only where as the others are
running in many other field also like Reliance (Petroleum, Textile, Telecom etc.)
3. Ethics and Values: KOTAK MAHINDRA is an ethical and cultural organization
which prevents the false selling and prohibits the false commitment to the
customer.
4. Sales Force: Properly trend licensed and Educated People are the strength of the
company. So that they could give the best customer service.
5. Huge branch network KOTAK MAHINDRA is having 450 branches in all over the
country.
6. Online accessibility: It makes the process faster and makes the customer delighted.

MISSION AND BUSINESS STRATEGY:-

Mission of KOTAK MAHINDRA is to be "a World Class Indian Bank",
benchmarking themselves against international standards and best practices in
terms of product offerings, technology, service levels, risk management and audit
& compliance.
The objective is to build sound customer franchises across distinct businesses so as
to be a preferred provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in profitability, consistent
with the Bank’s risk appetite. They are committed to do this while ensuring the
highest levels of ethical standards, professional integrity, corporate governance and
regulatory compliance.

Business strategy of KOTAK MAHINDRA emphasizes the following:

• Increase market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and not on
quantity and delivering high quality customer service.
• Leverage technology platform and open scalable systems to deliver more
products to more customers and to control operating costs.
• Maintain the current high standards for asset quality through disciplined credit
risk management.
• Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.
• Continue to develop products and services that reduce cost of funds
• Focus on high earnings growth with low volatility
 RECRUITMENT & SELECTION PROCESS

Meaning:

Recruitment and Selection system refers to sourcing and building efficient Human
Resource to the organization to attain its objectives.

Functions:

1. Retail assets
• Credit cards
• Retail assets
• Retail credit

2. Retail liabilities
• Direct banking
• Direct sales liabilities
• Foreign exchange services
• Liabilities product group
• Marketing
• Retail branch banking

3. Support function
• Custody and depository services
• Finance
• Human resources
• Operations

4. Wholesale banking
• Corporate banking
• Credit and market risk
• Customer service desk
• Emerging corporate group
• Emerging enterprise group
• Equities and private banking
• FIG
• Health care finance
• Investment banking
• NRI businesses
• Stock exchange and correspondent banking
This policy complies with, and supports, the Company’s Equal Opportunities
Policy by:

• Ensuring that every stage of the recruitment and selection process is carried
out in systematic way, based on pre-agreed criteria, to eliminate the potential for
personal bias affecting the decision making process.

• Ensuring that all decision points are fully documented to assist with
subsequent monitoring
• Making the whole procedure as open as possible, to ensure that all candidates
understand why decisions have been taken and, where they wish, to obtain
meaningful feedback.

• Enabling demonstration of robust, transparent processes and thereby

providing a basis for defense in the event of challenge.

There are seven main stages to the procedure:

 Pre-advertisement
 placing advertisements and dealing with enquiries and applicants
 short-listing
 interviewing and selection
 Post-selection procedures
 Induction
 monitoring
Analyzing Your Workplace:
To assist you analyze your workplace to identify recruitment or selection issues for
women, we suggest you:

• revisit your workforce profile to find where your female employees are.

• consult with your employees.

• examine your existing recruitment and selection policies and practices.

Developing Policy and Procedures

• Put in place a policy requiring recruitment and selection processes to select
the best person for the job.
• Develop a quality, consistent process for recruitment that delivers diverse
recruits.
• Have a recruitment strategy that links to your business plan, and to a strategy
to retain employees.

Reviewing Recruitment and Selection Opportunities

• Monitor each stage of the recruitment process to identify any practice that
may disadvantage some candidates.
• Investigate whether women have equal opportunity in the recruitment and
selection process by collecting information on the numbers of men and women:
 applying for positions
 being short-listed
 being interviewed
 being appointed, and
 Survey staff about their perception of equity in recruitment procedures.

• Consider collecting diversity information as part of the process. There could

be a pool of diverse candidates you’re not reaching or unnecessarily excluding.
Reviewing Job Descriptions:
• Ensure all job profiles/descriptions reflect the real requirements of the job,
rather than describing the person who filled that job previously.

• Write job profiles in language that encourages both men and women to apply
– including women of and Differing backgrounds. For example, avoid use of
jargon and acronyms that tend to be exclusive.
Recruiting and selecting the right people is paramount to the success of the
KOTAK MAHINDRA BANK LTD. and its ability to retain a workforce of the
highest quality. This recruitment and selection policy sets out the procedure to
ensure that the best people are recruited on merit and that are the recruitment
process is free from bias and discrimination.

PRINCIPLES:
Following are the guiding principles for recruitment and on-boarding process.
• Attracting and recruiting the right people is one of the most important activities
of the organization and is the responsibility to be owned by each and every
employee of the organization.

• Merit will be the single most important factor in selection process.

• They will ensure a diversity, both gender and ethnicity by targeted candidate
sourcing with the help of recruitment vendors and the referral program.

• While skills and profile matching play an important role, they will hire people
who are team players and have the right attitude most relevant to the culture of the
organization. Attitude is as important as aptitude.
• They believe in becoming a company of giants and emphasis is in hiring people
who can grow bigger and better than they presently are.

• They believe in providing their employee with fulfilling career paths. Towards
this, they will post vacancies internally as a preferred option while evaluating
external candidates.

• They believe that each candidate interviewed irrespective of whether she/he is

selected should become a friend of the organization.
They treat all the candidates with the utmost respect. They will be open and fair in
communication with them; this way they also enhance the brand image of the
organization.

• They will continuously assess, identify and cultivate strategic talent pools
including those at the universities, management schools, and community forums to
address their long term needs.

HIRING APPROVAL
• All recruitment activities shall be undertaken based on the hiring plan as
approved by the Business Head, HR Head & the CEO. For each approved position,
a hiring requisition will be required prior to initiation of any recruitment activity. If
the hiring was not included in the planned budget, it will also require approval
from the CEO based on a recommendation from the Head HR and the CFO. •
Recruitment expense will be allocated to the concerned business unit, and
expenditure should be budgeted and pre-approved by the business unit head and
the HR Head.
CANDIDATE SOURCING:
The hiring manager along with the Human Resource Department would decide the
channel / source to use based on the nature of the recruitment. The following
sources of recruitment may be considered:

• Internal Sources:
- Whenever any vacancy arises, the possibility of fulfilling the requirement
internally via reassignment and relocation, re-allocation of the responsibilities or
internal promotion will be explored by the hiring function along with the HR
Department.
- Internal job postings to explore internal candidates.

• Employee Referrals –
KOTAK MAHINDRA will encourage employees to refer suitable candidates for
open positions.

• Other external sources include:

- Recruitment agencies
- External job postings
- College / campus requirement
− Requirement advertisements

APPLICATION PROCESSING
KOTAK MAHINDRA will process all applications promptly and inform the
applicant or source regarding the status of the application. KOTAK MAHINDRA
will respond to all solicited applications within 5 working days of receiving the
application.
INTERVIEW PROCESS
• All candidates are required to undergo a face to face interview with the interview
panel before selection.

• Interviews may be conducted at a place at mutually convenient locations and time

in an effort to maintain confidentiality of the hiring effort.

• One on one meeting shall be preferred as the interview format, however

depending on the constraints panel interviews / telephone / video conference
screening could be used.

• For recruitment at junior levels, job fairs, universities etc, where large volume of
candidates, KOTAK MAHINDRA will use recruitment tests for purpose of short
listing. The candidate may be tested on the basic aptitude, analytical skills or other
skills required for the job of the candidates.

• The interview process will focus on the evaluating the candidates suitability in
terms of the job description and fit within the organization.

• Each interviewer will complete the interview feedback form and submit it to HR.
HR will compile the results from a various interviews and provide these to the line
manager for the final decision.
RECRUITMENT EXPENES:

• All recruitment expenses including recruitment fees, advertisement expenses and

interview related expenses will be allocated to the concerned business unit.

• The candidate will be informed about the nature of the expenses that are
reimbursable and the supporting documents required (in original). HR will ensure
that candidate fills the necessary reimbursement forms and that he/she receives the
reimbursement at the earliest.

• Outstation/International Candidates - KOTAK MAHINDRA will pay for

appropriate air fare and expenses incurred for the stay for candidates who they
decide to fly from other locations. Prior approval from the Regional HR Leader /
HR Head is required to invite candidates. For candidates from International
Locations, prior approval from the HR Head needs to be taken.

PRE-EMPLOYEMENT CHECK
This will include both a professional reference check as well as the background
check.

• Professional reference check will be completed by the hiring manager. KOTAK

MAHINDRA will request contact information for 2 references from the candidate,
and check the quality of previous work experience and key personal
characteristics/conduct/ previous record etc.

• For key positions in areas, KOTAK MAHINDRA will also perform a background
check to assess the integrity /conduct of the candidate.

The following information regarding the candidate will be verified:

 Proof of educational qualifications
 Any professional certificate that is essential to the job
 Address details
 Passport details
 Date of birth
 Proof of previous employment (service certificate)
 Any negative feedback and comment in the reference check will be
investigated by HR and if found genuine shall be a cause for disqualification
of the candidate or dismissal from employment.
OFFER PROCESS:
• Once the hiring decision is finalized, HR will prepare an offer / fitment as per the
compensation structure and grade and keeping in mind the internal equity.

• The offer would be communicated to the selected candidates by the hiring

manager along wither. The candidate will sign the contract letter to formally accept
employment from the organization.

PRE-EMPLOYMENT PROCESS
As an organization, KOTAK MAHINDRA will make all necessary arrangements
to ensure a smooth joining process for the employees. HR will provide the
candidate a check list prior to joining to ease joining formalities.

RELOCATION FOR EMPLOYMENT

Where the employee has to relocate and has been pre-approved by the HR Head
and the staffing leader, the relocating candidate shall be eligible for the following
relocation assistance:
The joining employ has the option to avail temporary accommodation (which
includes laundry) for the first two weeks arranged by organization. The stay in
company provided accommodation can be extended by two weeks further based on
specific approval from the Head HR. Where the stay extends beyond 4 weeks, the
respective will not be paid housing allowance for the corresponding period.
Local travel assistance up to positions of RO/RM/equivalent and below will be
reimbursed for one week and for SRM/equivalent and above will be reimbursed up
to two weeks. Food expenses during the period will be reimbursed as per actual up
to Rs 500/-per day per person. Approved reasonable expenses incurred in
transporting the personal goods including the transportation /registration of one
automobile to the city of work. Employees are advised to use the designated
moving agencies as per rates negotiated by Administration. Where negotiated rates
are not available, the employee is required to submit 3 quotations and secure
approval from Administration before assigning the contract to a moving firm.

EMPLOYEMENT OF RELATIVES
The organization employs, purely on merit, the relatives of our employees as long
as it does not create a potential conflict of interest. To avoid a potential conflict of
interest and to reduce the possibilities of favoritism – the following guidelines
must be followed:
Relatives are not assigned to a position where he/she has the opportunity to check,
process, and review, approve, audit or otherwise affect the work of the persons
cited and above.
NO one is assigned to a position where she/he influences the professional progress
or promotion of the persons cited above.
If one is aware of a situation that appears to be an opportunity for people to display
favoritism to relatives, one should contact the Department Head or Human
Resources Department.
Employees will not be part of the hiring process of their relatives
DEFINITION OF RELATIVES:
Relatives would include husband, wife, children, parents, sisters, brothers, first
cousins, brothers-in- law, sisters-in-law, mother –in-law, and father-in-law.
Employees who are aware of candidature of their relatives for the organization
must immediately report to the HR function in writing for information and records.
Failure to immediately report such cases will be considered as a serious violation
of the recruitment policy and may entail disciplinary action.

INTERNSHIP PROGRAM
As part of university hire program, KOTAK MAHINDRA will provide internship
opportunities to students. Such internships will provide opportunities to students to
learn while making real contributions to the company. KOTAK MAHINDRA will
follow the following process:
• HR will coordinate with business groups to identify potential opportunities for
intern hires.
• Internship requests could be received either from the students directly or as
nominations from the educational institute.
• HR and hiring manager to tele-interview the candidates with subsequent personal
interviews in the office
• HR to coordinate with the hiring manager to develop the project plan for the hire
Based on the demonstrated capability, the intern will be provided with the
opportunity to work in multiple departments to gain a wider business
understanding

INTERNSHIP CRITERIA
Typically, the intern will be a pre-final year student of the Bachelor or Master
degree programs specializing in Financial Services/IT and any other business
stream as required. Interns will be expected to manage their won accommodation
and it will not be provided by the company. Intern will be required to sign the
confidentiality and code of conducts documents of the company.
EMPLOYEE ON-BOARDING – PROCESS
The overall purpose of the new hire integration process is to ensure that the new
employee is able settle in smoothly and is able to contributing at the earliest.

PRE EMPLOYMENT INDUCTION

KOTAK MAHINDRA’s employee induction process shall begin as per the

employee accepts the job offer. The process includes:

Welcome pack: As soon as the candidate accepts the offer, a welcome pack will
be sent to the employee congratulatory note regarding the decision to join the
organization Contact details of a HR representative and the hiring manager
A brief company overview document.

Pre-joining checklist: Include details of the documents required from the

employee. In case the employee is relocating from a different location, details of
the relocation process and the visa requirement will be outlined in this checklist
Expectations on the first day of the joining

Office resources: HR shall intimate the immediate supervisor the joining date and
immediate supervisor shall work with the IT and administration team to set up the
following 5 days prior to employee joining, the following elements and are in
working order: Email ID, phone, computing resources, work space/office, access
cards, joining kit including bank account opening form, initial
reading material

POST JOINING ORIENTATION AND INDUCTION

Joining kit: The employee upon joining would be welcomed by the HR
representative and would be given a joining kit that will include: Access card,
information on employee’s email and phone number, Bank account opening form,
corporate insurance application form(if applicable),HR &Admin policy manual,
other relevant reading material ( to be prepared by hiring manager)
Classroom Induction: The employee integration process will also include
classroom training and induction where the employee will receive presentations
and trainings on various topics that would further ingrain the into the organization

On the job training: Besides formal training sessions, the employee will undergo
on-the-job function specific trainings that are facilitated by the respective functions
to help the new employee acquaint himself/herself with work in progress.
PROBATION POLICY

Probation is a trial that is mutual opportunity for the employee and KOTAK
MAHINDRA to confirm suitability for continued employment. The probation
period is to establish a stronger understanding of mutual capabilities, expectations
and understanding which may include functional training. The employee must
demonstrate suitability for continued employment. An assessment will be based on
factors related to work performance, work habits, productivity, attitude and
compatibility, attendance and
punctuality, and any other matter that is linked to job performance and
expectations.
All new hires will be placed on probation for a period of 6 months from the date of
joining will initiate the confirmation process by sending an appraisal form to the
immediate supervisor before the completion of probationary period. The appraisal
form will need to be approved by the supervisor’s leadership
All letters of confirmation or extension of probation will be signed by the HR head
and will be stored in employee file for records.

REFERRAL BONUS AMOUNT

• The Referral Bonus Program is operated under the authority of the Budget and
Control Board’s Employee Bonus Guidelines. Under these guidelines, an employee
may receive multiple bonuses, the total of which may not exceed $2,000 in any
fiscal year.

• Referral bonus payments may be paid in a lump sum or in periodic payments

until the new employee has completed his or her probationary period. Payments
cannot be made until the referred candidate has been employed for a minimum of
one month. For example, a $1,000 referral bonus can be structured as follows:
- $250 referral bonus awarded after three months from the hire date,
- $250 referral bonus awarded after six months from the hire date,
- $500 referral bonus awarded at the end of the probationary period.
REFERRAL BONUS PROGRAM ADMINISTRATION

The Referral Program operates in accordance with the following program

requirements:
• Referral bonuses are awarded at the discretion of management with the Agency
Director or his designee having final approval authority.

• Funding for the program must come from existing agency resources.

• The Agency will provide a forum for completion and submission by either the
applicant or the referring employee with the applicant’s application indicating that
the referring employee has made the referral.

• The Agency will designate a position as “hard-to-fill” before the position is

posted.

• Employees selected for eligible positions must be employed by the agency for at
least one month before a referring employee may be eligible to receive a referral
bonus. Referred candidates cannot be current employees of the hiring agency in
any capacity, to include temporary, temporary grant, research grant, time- limited
project, or contract employees. Both the referring employee and the referred
candidate must be employed by the agency when any referral bonus is paid receive
the referral bonus.

• Any disputes arising from the application of this program will be the
responsibility of the Agency Director or his designee to resolve and will not be
considered a grievance under the State Employee Grievance Procedure Act.

• The agency HR Office will monitor the use of the Referral Bonus Program and
will report annually to the Office of Human Resources information on the use of
the Referral Bonus Program.

• The hiring process will be fair and consistent with agency policy and procedures,
with no bias for or against candidates whose selection might make another
employee eligible for a referral bonus. Amount paid to the employees who refer
the candidates and if they get selected varies from Rs.7000 to Rs.2000 based on the
grade of the employee refereed and the refereed candidate placed.
This amount is paid to the employees in two ways:
1. immediately when the candidate is joined
2. After the completion of 3 months of the candidate selected.

Only middle level and senior level management employees have the opportunity of
referring the candidates. This policy/scheme is not applicable to the top
management employees. Also the employees who are under probation or training
period are not eligible for this employee referral policy.

FINDINGS
1. Recruitment at an officer and managerial level is not done effectively.

2. Many people in the organization today are in the wrong jobs and as a result, they
are not utilizing their full potential.

3. Hiring people based on personal connections when the person is not qualified
for the job.

4. Most recruitment that involves managers is done during discussions at lunch

hour, at social clubs or during the coffee break time.

5. Inadequate recruitment procedures resulted in a number of staff not being

sufficiently qualified either for the positions they hold or their grades levels,
especially in management positions.

6. Psychometric test is not conducted during the selection process.

7. Confusion in the designation and level to the employees even after permanent
status for employment is given.

8. Proper training is not given to the recruitment team and manager.

9. Reaching few prospects due to internal recruitment, internet advertising most of
the time.
RECOMMENDATIONS
• The organization should provide or set up a communication lab for the benefit of
the fresher and existing employees that makes a career development and new
opportunity to grow up in the organization.

• This increases the employee morale and helps to attain the target.

• Communication classes should be conducted timely to all employees should be

followed by organization.

• Refresher courses may organize intermittently for all employees in the rank and
file category to relive job fatigue and monotony of every day work life. So
employees can gain skills by Communication.

• Candidates who enter into the Job Market must make sure that their efficiency in
Communication is up to the expectation of an organization which will make them to
go through the Recruitment and Selection system of Royal Sandarac Alliance
Insurance Company.

• The respondents in the corporate exhibits that communication skills are necessary
for all the employees from different channels.

• FOS (Fleet on street) Team should be made involved to pass through more
communication classes from language experts.

• The company should allot funds to create a communication laboratory for the
beneficiary of all the employees.

SUGGESTIONS
1. Psychometric tests have to be conducted to assessing the personality of the
applicants – will they fit in?

2. Look for different skills as well as the ideas of the candidate at the time of
recruitment and selection process.
3. Adopting adequate recruitment procedures to employ efficient and talented
people.
4. Job responsibilities have to be clearly explained to the candidate before the
joining formality is done.

5. Campus recruitments, job fairs may attract more skilled and talented employees
towards the organization.

6. Provide orientation training to all new employees before their initial work
assignments and to all current employees who receive a different task or job.

7. Referral scheme has to be encouraged more at times when the requirement is

urgent.
CONCLUSION

Recruitment is essential to effective Human Resources Management. It is the heart

of the whole HRsystems in the organization. The effectiveness of many other HR
activities, such as selection and training depends largely on the quality of new
employees attracted through the recruitment the recruitment process.

Policies should always be reviewed as these are affected by the changing

environment. Management should get specific training on the process of
recruitment to increase their awareness on the dangers of wrong placements.

Effective recruitment is important in achieving high organizational performance

and minimizing labor turnover. As of now KOTAK MAHINDRA Bank Ltd. has a
team of effective human resource which is efficiently managing the organization at
its best. Though the recruitment process adopted by the organization needs to be
improved, challenges are ahead for the HR Department to recruit people after the
effect of recession.

In the present competitive & dynamic environment, it has become essential for
organization to build and sustainable.
In competitive advantage, the Communication skill set has assumed more
importance than even before. Dynamic and growth-oriented organization
recognizes Communication as an important aspect of the Recruitment and
Selection system for managerial function in a rapidly changing and economic
environment.
Insurance industries should possess a valuable work force with good
communication skill sets to get a good deal or business from their customers. In
this sector the Open Market channel is the main source of revenue for the company
for which they should be able to communicate well with their clients. Then the
company can reach its profitability and objectives easily.

The company should take the suggestions and ideas from the employees and
can conduct and examine the communication skill set within the employees. So
that they can analyze the need and act accordingly for a better result and the
growth of its own and valuable workforce.
 Performance Appraisal
KOTAK MAHINDRA follows a 360 degree feedback, also known as 'multi-rater
feedback', is the most comprehensive appraisal where the feedback about the
employees’ performance comes from all the sources that come in contact with the
employee on his job.

360 degree appraisal has four integral components:

 Self appraisal

 Superior’s appraisal

 Subordinate’s appraisal

 Peer appraisal

The employee first fills a performance appraisal form. This has details regarding
the major works done by the employee and the weight age, he feels is suitable for
that work.

To evaluate the performance, different criteria like timeliness, quality of work

carried out by the employee, customer satisfaction, peer satisfaction, and business
potential, were considered. The personal skills of the employees were also
evaluated based on their learning and analytical ability, communication skills,
decision making, change management, and planning and organizing skills. Each of
these criteria was measured on a scale of 1 to 5 (with 1 signifying above the
expected performance level and 5 below the expected performance level).

The immediate supervisor reviews this form, recommends changes, if any and
submits it to the final reporting member. Once approved, this goes for review to an
appraisal committee. This committee holds an active discussion on each employee
under them, and assigns a credit rating to each employee. Each committee also has
a member with veto power, whose decision is binding, in case of a conflict.
The performance of the each employee is assessed twice in a year. The candidate’s
performance is evaluated on the basis of:

 Daily number of hours logged against each activity performed

 Immediate supervisor’s assessment of performance.

Separation from the company:

The separation can be company initiated or employee initiated. The major causes
for separation are:

 Retirement

 Termination

 Resignation

In case of resignation, an employee has to give at least two months prior notice to
the company. The employee initiates the process through a separation portal on the
company’s intranet. This has to be approved by the HR and then by the supervisor
of the employee. They can also hold meetings with the employee to restrain him
from resigning or discuss other related matters. The form then moves to the
separation department where the accounts of the employee are settled.

Finally, an exit interview is conducted by an HR from separation department,

where they ask questions regarding reason for exit and suggestions for areas of
improvement of KOTAK MAHINDRA BANK.

After a period of 3-4 months, the PF amount and other compensations are
deposited in the employee’s account and informed via email.