Professional Documents
Culture Documents
QUALITY MANAGEMENT
CONCEPTUALIZATION
This is Total Quality Management Project Report. Human resource is the most important
factor for any organization and success of any Organization is depending upon its
resource .If human resource of organization is not happy with the organization. It will
adversely affect the organization.
The higher degree of commitment toward work will improve productivity and will
decrease rejection cause due to human factor.
So to make the people happy is the responsibility of the organization. So this study is
helpful to measure the level of commitment toward work and to know the factor affecting
the commitment level .
TOTAL QUALITY :-
It means all the people of the organization are committed to product quality by doing
right things right, first time, every time by employing organization resource to provide
value to customer.
TOTAL QUALITY MANAGEMENT: It is the process designed to focus external/internal customer expectation preventing
problems building ,commitment to quality in the workforce and promoting to open
decision making.
TOTAL:
Every one associated with the company is involved in continuous improvement, in all
functional area, at all level.
QUALITY:
Customer express and implied requirement is met fully.
MANAGEMENT:
Executive are fully committed
Decision in a planned way.
To maintain existing lever of quality.
To improve existing lever of quality.
Effective utilization of resource.
FOUR CS OF TQM
1. Commitment
2. Comptence
3. Communication
4. Continuous improvement
FACTOR AFFECTED THE COMMITMENT OF THE EMPLOYEES:General worker attitude toward the company.
General worker attitude toward the supervisor.
Lever of satisfaction toward job standard.
The lever of consideration the supervisor shows to his subordination.
The workload & work pressure level.
The treatment of individual by the management
OPERATIONALISATION OF THE
CONCEPT:-
But the effect of TQM on employees commitment in the company has so far not
undertaken. This project has been done first time in the company.
LIMITATION
~Employees of the organization may hide the fact.
~The management did not agree to disclose all the confidential
data.
~Number of respondents are very less, so clear conclusion cant be
drawn.
RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem in a systematic
manner. It may understand as a science of studying how the research is done significantly.
The methodology may differ from problem to problem, yet the basic approach towards
the research remains the same. The sequence or steps followed have been explained as
under:
RESEARCH DESIGN
This research is of EXPLORATARY RESEARCH DESIGN .I have used the
questionnaire method for collecting the data.
ANALYSIS PATTERN
Data collection:
This data is primary data, which I have been collected with the help of
questionnaire. I have prepared a questionnaire on the basis of the factors
responsible for employees commitment in the organization.
Most of the staffs member feel that their performance is properly measured in the
organization.
RECCOMENDATIONS
The suggestions I have given for the betterment are explained below:
It is very important to provide the opportunity to the employees of the
organization to express their ideas or whatever they want to express.
Management should clear their vision mission and goals towards the employees
in the organization.
Management should involve the workers representatives in managerial activities
so that the transparency could be maintained and through this they can win the
confidence of the employees.
Management should give due importance to mental relaxation &social cultural
development of an employees who strives hard for the company.
Reward or Praise/appreciation works as magic for an individual and motivates
them for work.
Role clarity of each position should be defined and based on that individuals can
plan their work accordingly.
Self-potential system should be encouraged.
There are regular review and comparison of current & past performance to detect
gradual deterioration in the strategy.
Proper cooperation should be necessary in the company.
YES
NO
NO
NO
NO
above 10
above 15
cant say
biweekly
monthly
yearly
NO
NO
cant say
NO
cant say
NO
cant say
Do you think the organization used bench marking, if any, please tell me the
name of the benchmark organization?
YES
NO
cant say
If yes, then
Org.
Area
a.
b.
NO
dontknow
NO
Does the organization have the certification of ISO 14000 or any other, if
any please mention?
YES
NO
dontknow
Are you practicing the six sigma for the error control?
YES
NO
dontknow
Strongly disagree
Disagree
Strongly disagree
Disagree
Employees are kept updated with changes in job skills & job designs?
Strongly Agree
Dont know Agree
Strongly disagree
Disagree
Strongly disagree
Disagree
Some whatLittle
Not at all
No
work?
Sometimes
No
Sometimes
What types of relations are you having with your superior, peers and
subordinates?
Good
Average
Poor
All above
Do you feel that you can get ahead in the org. if you make an effort?
Yes
No
Sometimes
No
Sometimes
No
Sometimes
Do you find that your job makes the best use of your abilities?
Yes
No
Some Times
[TQM]
A
B
Staff %
87
13
Workers %
65
25
This shows that about 87% staff and 65% worker agreed that organization is quality
conscious toward employees.
A.
B.
Worker %
67
33
This shows that 100% staff and 70% worker said that the organization have the
certification of ISO 9000.
A.
B.
Staff %
80
20
Worker %
58
42
This shows that 80% staff& app.65% worker think that organization
providing quality assurance system &operation.
A.
B.
Staff %
87
13
Worker %
46
54
It shows that app.90% staff & 46% worker agreed with the statement . 54%
workers said they dont know about this.
B.Above 10
C. Above 15
D. Cant say
A.
B.
C.
D.
Staff %
22
54
14
10
Worker%
36
28
22
14
It shows that about 54% staff says there are above 10 member in the quality
circle.
How frequently the organization have the meeting of quality circle ?
A. Weekly
B. Biweekly
C. Monthly
D. Yearly
A.
B.
C.
D.
Staff %
17
57
26
0
Worker%
35
42
23
0
It shows that app.60 % staff & 42% worker says organization have the
biweekly meeting of quality circle.
Worker %
A.
B.
60
40
14
86
A.
B.
C
Staff %
85
10
5
Worker %
26
24
50
Above shows that 85% staff &26% worker says that organization is going for quality
audit but 50% worker says they dont know about the quality audit.
A.
B.
Staff %
95
0
Worker %
15
31
54
Above shows that 95% staff says that organization have quality information system
&54 % worker says they dont know about this.
A.
B.
C
Staff %
69
11
20
Worker %
55
11
34
About 70 % staff & 55% worker says that organization regularly updated.
F. Cant say
A.
B.
C
Staff %
30
25
45
Worker %
8
0
92
This shows that 95%staff says that organization have quality information system but 54%
worker say they dont know about this.
A.
B.
C
Staff %
70
13
17
Worker %
3
0
97
Above table shows that 70%staff agreed with the statement.but 97% worker say they
dont know about this.
Staff %
90
10
A.
B.
Worker %
26
74
It shows that about the 90% staff and 26% worker says they are practicing
this but 74% workers dont know about this.
A.
B.
C
Staff %
100
0
0
Worker %
53
16
31
It shows that all of the respondent of staff & most of the worker category
says that organization have ISO 14000.
A. Strongly agree
B. Strongly disagree
C. Dont know
D. Agree
E. Disagree
A
B
C
D
E
Staff %
18
12
20
30
20
Workers %
7
30
46
7
10
It shows that about 50% of the respondent are agree with the statement but
in worker category most of them are either disagree or dont know.
A
B
C
D
E
Staff %
22
5
25
45
3
Workers %
7
13
40
13
27
It shows that about 50% staff of the respondent are agree with the statement
but in worker category app.60% disagree with the statement.
Employees are keep updating with change in the job skill & job design?
A. Strongly agree
B. Strongly disagree
C. Dont know
D. Agree
E. Disagree
Staff %
10
5
10
55
20
A
B
C
D
E
Workers %
3
15
13
45
24
It shows that app. 70% respondents are agree with the statement .
Formal& informal method is followed for employees feedback &
acting on that feedback?
A. Strongly agree
D.Agree
E. Disagree
A
B
C
D
E
Staff %
15
5
0
70
10
Workers %
2
21
7
40
30
Above table shows that app. 80% respondents of the staff and 45% from
worker said that there are proper feedback system. are agree with the
statement .
Staff %
Workers %
A
5
5
B
75
28
C
10
13
D
7
46
E
3
8
Above table shows that 75% staff and 50% from worker said that
organization provide the right environment to apply knowledge to the job
Proper feedback system. are agree with the statement .
Do you feel that this organization is a good place to work?
A. Yes
B. No
C. Cant say
A
B
C
Staff %
80
5
15
Workers %
58
36
8
A.
B.
C.
Staff %
55
20
25
Worker %
47
40
13
It shows that the employees of the staff category are more satisfied with
the rules and policies of the organization then employees from the
workers category.
What type of relations are you having with your superiors, peers
and subordinates?
A. Good
B. Average
C. Poor
Staff
90
10
0
A.
B.
C.
Workers
34
50
16
It shows that most of the employees from the staff category are having
good relationships with their superiors. But most of the workers are
having only satisfactory relationships.
A.
B.
C.
D.
Workers
10
27
18
45
It shows that most of the worker take misbehaviour from their superior.
Do you feel that you can get ahead in the organization if you make efforts?
A. Yes
B. No
C. Sometimes
Staff
Workers
A.
45
24
B.
25
72
C.
30
This shows that most of the workers feels that they cant get ahead in the
organization if they work hard but the attitude of employees of staff is just
opposite.
A.
B.
C.
Staff %
30
65
5
Workers %
22
68
10
This shows that most of the staff members or workers have not get
reward in the organization on their good performance.
A.
B.
C.
Staff %
45
40
15
Workers %
26
67
7
Do you find that your job makes the best use of your abilities?
(For Managers)
A. Yes
B. No
C. Sometimes
A.
B.
C.
Staff
55
30
15
It shows that most of the staff members are feels that their job makes
the best use of their abilities.
Objective of Project Report : The main objective of the Project Report is Find the
Ratio Analysis of company. And sub objectives of this report is understand the Meaning
of Ratio, Pure Ratio or Simple Ratio, Advantages of Ratio Analysis, Limitations of
Ratio Analysis, classification of Ratio, Liquidity Ratio, Profitability Ratio or Income
Ratio, Activity & Turnover Ratio, Return on Capital Employed
RATIO ANALYSIS
Meaning of Ratio:- A ratio is simple arithmetical expression of the
relationship of one number to another. It may be defined as the indicated
quotient of two mathematical expressions.
According to Accountants Handbook by Wixon, Kell and Bedford, a ratio
is an expression of the quantitative relationship between two numbers.
Ratio Analysis:- Ratio analysis is the process of determining and presenting
the relationship of items and group of items in the statements. According to
Batty J. Management Accounting Ratio can assist management in its basic
functions of forecasting, planning coordination, control and
communication.
It is helpful to know about the liquidity, solvency, capital structure and
profitability of an organization. It is helpful tool to aid in applying
judgement, otherwise complex situations.
Ratio analysis can represent following three methods.
c. Proprietary Ratio
d. Fixed Assets to Proprietors Fund Ratio
e. Capital Gearing Ratio
f. Interest Coverage Ratio
C. Activity Ratio or Turnover Ratio
a. Stock Turnover Ratio
b. Debtors or Receivables Turnover Ratio
c. Average Collection Period
d. Creditors or Payables Turnover Ratio
e. Average Payment Period
f. Fixed Assets Turnover Ratio
g. Working Capital Turnover Ratio
D. Profitability Ratio or Income Ratio
I.
Current Assets/
Current Liabilities
Liquid Assets means those assets, which will yield cash very shortly.
Liquid Assets = Current Assets Stock Prepaid Expenses
Significance :- An ideal quick ratio is said to be 1:1. If it is more, it is
considered to be better. This ratio is a better test of short-term financial
position of the company.
LEVERAGE OR CAPITAL STRUCTURE RATIO
(B) Leverage or Capital Structure Ratio :- This ratio disclose the firms
ability to meet the interest costs regularly and Long term indebtedness at
maturity.
These ratio include the following ratios :
a. Debt Equity Ratio:- This ratio can be expressed in two ways:
First Approach : According to this approach, this ratio expresses the
relationship between long term debts and shareholders fund.
Formula:
Debt Equity Ratio=Long term Loans/Shareholders Funds or Net Worth
Long Term Loans:- These refer to long term liabilities which mature after
one year. These include Debentures, Mortgage Loan, Bank Loan, Loan from
Financial institutions and Public Deposits etc.
Shareholders Funds :- These include Equity Share Capital, Preference
Share Capital, Share Premium, General Reserve, Capital Reserve, Other
Reserve and Credit Balance of Profit & Loss Account.
Second Approach : According to this approach the ratio is calculated as
follows:-
Formula:
Debt Equity Ratio=External Equities/internal Equities
concerns keep the debt to total funds ratio below 67%. The lower ratio is
better from the long-term solvency point of view.
c. Proprietary Ratio:- This ratio indicates the proportion of total funds
provide by owners or shareholders.
Formula:
Proprietary Ratio = Shareholders Funds/Shareholders Funds + Long term loans
part of working capital is provided by the proprietors. This will indicate the
long-term financial soundness of business.
e. Capital Gearing Ratio:- This ratio establishes a relationship between
equity capital (including all reserves and undistributed profits) and fixed cost
bearing capital.
Formula:
Capital Gearing Ratio = Equity Share Capital+ Reserves + P&L Balance/ Fixed cost
Bearing Capital
Significance :- This ratio indicates how many times the interest charges are
covered by the profits available to pay interest charges.
This ratio measures the margin of safety for long-term lenders.
This higher the ratio, more secure the lenders is in respect of payment of
interest regularly. If profit just equals interest, it is an unsafe position for the
lender as well as for the company also , as nothing will be left for
shareholders.
An interest coverage ratio of 6 or 7 times is considered appropriate.
ACTIVITY RATIO OR TURNOVER RATIO
(C) Activity Ratio or Turnover Ratio :- These ratio are calculated on the bases
of cost of sales or sales, therefore, these ratio are also called as Turnover
Ratio. Turnover indicates the speed or number of times the capital employed
has been rotated in the process of doing business. Higher turnover ratio indicates
the better use of capital or resources and in turn lead to higher profitability.
The higher the ratio, the better it is, since it indicates that stock is selling
quickly. In a business where stock turnover ratio is high, goods can be sold
at a low margin of profit and even than the profitability may be quit high.
b. Debtors Turnover Ratio :- This ratio indicates the relationship between
credit sales and average debtors during the year :
Formula:
Debtor Turnover Ratio = Net Credit Sales / Average Debtors + Average B/R
While calculating this ratio, provision for bad and doubtful debts is not
deducted from the debtors, so that it may not give a false impression that
debtors are collected quickly.
Significance :- This ratio indicates the speed with which the amount is
collected from debtors. The higher the ratio, the better it is, since it indicates
that amount from debtors is being collected more quickly. The more quickly
the debtors pay, the less the risk from bad- debts, and so the lower the
expenses of collection and increase in the liquidity of the firm.
By comparing the debtors turnover ratio of the current year with the
previous year, it may be assessed whether the sales policy of the
management is efficient or not.
c. Average Collection Period :- This ratio indicates the time with in which
the amount is collected from debtors and bills receivables.
Formula:
Average Collection Period = Debtors + Bills Receivable / Credit Sales per day
Here, Credit Sales per day = Net Credit Sales of the year / 365
Second Formula :Average Collection Period = Average Debtors *365 / Net Credit Sales
Significance :- This ratio shows the time in which the customers are paying
for credit sales. A higher debt collection period is thus, an indicates of the
inefficiency and negligency on the part of management. On the other hand,
if there is decrease in debt collection period, it indicates prompt payment by
debtors which reduces the chance of bad debts.
d. Creditors Turnover Ratio :- This ratio indicates the relationship
between credit purchases and average creditors during the year .
Formula:Creditors Turnover Ratio = Net credit Purchases / Average Creditors + Average B/P
Note :- If the amount of credit purchase is not given in the question, the ratio
may be calculated on the bases of total purchase.
Significance :- This ratio indicates the speed with which the amount is being
paid to creditors. The higher the ratio, the better it is, since it will indicate
that the creditors are being paid more quickly which increases the credit
worthiness of the firm.
Significance :- The lower the ratio, the better it is, because a shorter
payment period implies that the creditors are being paid rapidly.
d. Fixed Assets Turnover Ratio :- This ratio reveals how efficiently the
fixed assets are being utilized.
Formula:Fixed Assets Turnover Ratio = Cost of Goods Sold/ Net Fixed Assets
ii.
iii.
iv.
v.
Significance:- Various expenses ratio when compared with the same ratios
of the previous year give a very important indication whether these expenses
in relation to sales are increasing, decreasing or remain stationary. If the
expenses ratio is lower, the profitability will be greater and if the expenses
ratio is higher, the profitability will be lower.
(B) Profitability Ratio Based on Investment in the Business:These ratio reflect the true capacity of the resources employed in the
enterprise. Sometimes the profitability ratio based on sales are high whereas
profitability ratio based on investment are low. Since the capital is employed
to earn profit, these ratios are the real measure of the success of the business
and managerial efficiency.
These ratio may be calculated into two categories:
(b) Return on Equity Shareholders Funds:Equity Shareholders of a company are more interested in knowing the
earning capacity of their funds in the business. As such, this ratio measures
the profitability of the funds belonging to the equity shareholders.
Formula:
Return on Equity Shareholders Funds = Net Profit (after int., tax & preference dividend)
/ Equity Shareholders Funds *100
RATIO ANALYSIS
Where, Equity Shareholders Funds = Equity Share Capital + All Reserves
+ P&L A/c
Balance Fictitious Assets
Significance:- This ratio measures how efficiently the equity shareholders
funds are being used in the business. It is a true measure of the efficiency of
the management since it shows what the earning capacity of the equity
shareholders funds. If the ratio is high, it is better, because in such a case
equity shareholders may be given a higher dividend.
(c) Earning Per Share (E.P.S.) :- This ratio measure the profit available to
the equity shareholders on a per share basis. All profit left after payment of
tax and preference dividend are available to equity shareholders.
Formula:
Earning Per Share = Net Profit Dividend on Preference Shares / No. of
Equity Shares
(f) Earning and Dividend Yield :- This ratio is closely related to E.P.S. and
D.P.S. While the E.P.S. and D.P.S. are calculated on the basis of the book
value of shares, this ratio is calculated on the basis of the market value of
share
(g) Price Earning (P.E.) Ratio:- Price earning ratio is the ratio between
market price per equity share & earnings per share. The ratio
is calculated to make an estimate of appreciation in the value of
a share of a company & is widely used by investors to decide
whether or not to buy shares in a particular company.
Significance :- This ratio shows how much is to be invested in the market in
this companys shares to get each rupee of earning on its shares. This ratio is
used to measure whether the market price of a share is high or low.
Home
Fixed Capital
2)
Working Capital
Every business needs funds for two purposes for its establishment and to carry out
its day- to-day operations. Long terms funds are required to create production facilities
through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments
in these assets represent that part of firms capital which is blocked on permanent or fixed
basis and is called fixed capital. Funds are also needed for short-term purposes for the
purchase of raw material, payment of wages and other day to- day expenses etc.
These funds are known as working capital. In simple words, working
capital refers to that part of the firms capital which is required for financing short- term
or current assets such as cash, marketable securities, debtors & inventories. Funds, thus,
invested in current assts keep revolving fast and are being constantly converted in to cash
and this cash flows out again in exchange for other current assets. Hence, it is also known
as revolving or circulating capital or short term capital.
CONCEPT OF WORKING CAPITAL
There are two concepts of working capital:
1.
2.
The gross working capital is the capital invested in the total current assets of the
enterprises current assets are those
Assets which can convert in to cash within a short period normally one accounting
year.
CONSTITUENTS OF CURRENT ASSETS
1)
2)
Bills receivables
3)
Sundry debtors
4)
5)
Raw material
b.
Work in process
c.
d.
Finished goods
In a narrow sense, the term working capital refers to the net working. Net
working capital is the excess of current assets over current liability, or, say:
NET
WORKING
CAPITAL
CURRENT
ASSETS
CURRENT
LIABILITIES.
Net working capital can be positive or negative. When the current assets
exceeds the current liabilities are more than the current assets. Current liabilities
are those liabilities, which are intended to be paid in the ordinary course of
business within a short period of normally one accounting year out of the
current assts or the income business.
CONSTITUENTS OF CURRENT LIABILITIES
1.
2.
3.
Dividends payable.
4.
Bank overdraft.
5.
6.
Bills payable.
7.
Sundry creditors.
The gross working capital concept is financial or going concern concept whereas net
working capital is an accounting concept of working capital. Both the concepts have their
own merits.
The gross concept is sometimes preferred to the concept of working capital for the
following reasons:
1.
2.
3.
It take into consideration of the fact every increase in the funds of the
enterprise would increase its working capital.
4.
required to meet the seasonal need of the enterprise is called seasonal working capital.
Special working capital is that part of working capital which is required to meet special
exigencies such as launching of extensive marketing for conducting research, etc.
Temporary working capital differs from permanent working capital in the sense that is
required for short periods and cannot be permanently employed gainfully in the business.
IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING CAPITAL
Easy loans: Adequate working capital leads to high solvency and credit
standing can arrange loans from banks and other on easy and favorable terms.
as purchasing its requirements in bulk when the prices are lower and holdings its
inventories for higher prices.
Ability To Face Crises: A concern can face the situation during the
depression.
2.
3.
4.
5.
6.
7.
For studying the need of working capital in a business, one has to study the business
under varying circumstances such as a new concern requires a lot of funds to meet its
initial requirements such as promotion and formation etc. These expenses are called
preliminary expenses and are capitalized. The amount needed for working capital
depends upon the size of the company and ambitions of its promoters. Greater the
size of the business unit, generally larger will be the requirements of the working
capital.
The requirement of the working capital goes on increasing with the growth and
expensing of the business till it gains maturity. At maturity the amount of working
capital required is called normal working capital.
There are others factors also influence the need of working capital in a business.
FACTORS
DETERMINING
THE
WORKING
CAPITAL
REQUIREMENTS
1.
NATURE OF BUSINESS:
very limited in public utility undertakings such as electricity, water supply and
railways because they offer cash sale only and supply services not products,
and no funds are tied up in inventories and receivables. On the other hand the
trading and financial firms requires less investment in fixed assets but have to
invest large amt. of working capital along with fixed investments.
2.
PRODUCTION POLICY:
4.
manufacturing time the raw material and other supplies have to be carried for
a longer in the process with progressive increment of labor and service costs
before the final product is obtained. So working capital is directly proportional
to the length of the manufacturing process.
SEASONALS VARIATIONS:
5.
6.
DEBTORS
CASH
FINISHED GOODS
RAW MATERIAL
7.
WORK IN PROGRESS
8.
9.
Operating efficiency.
Management ability.
Irregularities of supply.
Import policy.
Asset structure.
Importance of labor.
2.
3.
Ratio analysis.
2.
3.
Budgeting.
1.
RATIO ANALYSIS
2.
Fund flow analysis is a technical device designated to the study the source from
which additional funds were derived and the use to which these sources were put.
The fund flow analysis consists of:
a.
b.
3.
Liquidity ratios.
2.
A) LIQUIDITY RATIOS
Liquidity refers to the ability of a firm to meet its current obligations as and
when these become due. The short-term obligations are met by realizing
amounts from current, floating or circulating assts. The current assets should
either be liquid or near about liquidity. These should be convertible in cash for
paying obligations of short-term nature. The sufficiency or insufficiency of
current assets should be assessed by comparing them with short-term liabilities.
If current assets can pay off the current liabilities then the liquidity position is
satisfactory. On the other hand, if the current liabilities cannot be met out of the
current assets then the liquidity position is bad. To measure the liquidity of a
firm, the following ratios can be calculated:
1.
CURRENT RATIO
2.
QUICK RATIO
3.
1. CURRENT RATIO
Current Ratio, also known as working capital ratio is a measure of general
liquidity and its most widely used to make the analysis of short-term financial
position or liquidity of a firm. It is defined as the relation between current assets
and current liabilities. Thus,
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITES
The two components of this ratio are:
1)
CURRENT ASSETS
2)
CURRENT LIABILITES
2006
81.29
27.42
2.96:1
2007
83.12
20.58
4.03:1
2008
13,6.57
33.48
4.08:1
Interpretation:As we know that ideal current ratio for any firm is 2:1. If we see the current
ratio of the company for last three years it has increased from 2006 to 2008. The
current ratio of company is more than the ideal ratio. This depicts that
companys liquidity position is sound. Its current assets are more than its current
liabilities.
2. QUICK RATIO
Quick ratio is a more rigorous test of liquidity than current ratio. Quick ratio
may be defined as the relationship between quick/liquid assets and current or
liquid liabilities. An asset is said to be liquid if it can be converted into cash
with a short period without loss of value. It measures the firms capacity to pay
off current obligations immediately.
QUICK RATIO = QUICK ASSETS
CURRENT LIABILITES
Where Quick Assets are:
1)
Marketable Securities
2)
3)
Debtors.
A high ratio is an indication that the firm is liquid and has the ability to meet its
current liabilities in time and on the other hand a low quick ratio represents that
the firms liquidity position is not good.
As a rule of thumb ratio of 1:1 is considered satisfactory. It is generally thought
that if quick assets are equal to the current liabilities then the concern may be
able to meet its short-term obligations. However, a firm having high quick ratio
may not have a satisfactory liquidity position if it has slow paying debtors. On
the other hand, a firm having a low liquidity position if it has fast moving
inventories.
CALCULATION OF QUICK RATIO
e.g.
(Rupees in Crore)
Year
Quick Assets
Current Liabilities
Quick Ratio
2006
44.14
27.42
1.6 : 1
2007
47.43
20.58
2.3 : 1
2008
61.55
33.48
1.8 : 1
Interpretation :
A quick ratio is an indication that the firm is liquid and has the ability to
meet its current liabilities in time. The ideal quick ratio is 1:1. Companys
quick ratio is more than ideal ratio. This shows company has no liquidity
problem.
3. ABSOLUTE LIQUID RATIO
Although receivables, debtors and bills receivable are generally more liquid
than inventories, yet there may be doubts regarding their realization into cash
immediately or in time. So absolute liquid ratio should be calculated together
with current ratio and acid test ratio so as to exclude even receivables from the
current assets and find out the absolute liquid assets. Absolute Liquid Assets
includes :
ABSOLUTE LIQUID RATIO =
(Rupees in Crore)
2006
4.69
27.42
.17 : 1
2007
1.79
20.58
.09 : 1
2008
5.06
33.48
.15 : 1
These ratio shows that company carries a small amount of cash. But there is
nothing to be worried about the lack of cash because company has reserve,
borrowing power & long term investment. In India, firms have credit limits
sanctioned from banks and can easily draw cash.
B) CURRENT ASSETS MOVEMENT RATIOS
Funds are invested in various assets in business to make sales and earn
profits. The efficiency with which assets are managed directly affects the
volume of sales. The better the management of assets, large is the amount of
sales and profits. Current assets movement ratios measure the efficiency with
which a firm manages its resources. These ratios are called turnover ratios
because they indicate the speed with which assets are converted or turned over
into sales. Depending upon the purpose, a number of turnover ratios can be
calculated. These are :
1.
2.
3.
4.
The current ratio and quick ratio give misleading results if current assets include
high amount of debtors due to slow credit collections and moreover if the assets
include high amount of slow moving inventories. As both the ratios ignore the
movement of current assets, it is important to calculate the turnover ratio.
1.
AVERAGE INVENTORY
Inventory turnover ratio measures the speed with which the stock is
converted into sales. Usually a high inventory ratio indicates an efficient
management of inventory because more frequently the stocks are sold ; the
lesser amount of money is required to finance the inventory. Where as low
inventory turnover ratio indicates the inefficient management of inventory.
A low inventory turnover implies over investment in inventories, dull
business, poor quality of goods, stock accumulations and slow moving
goods and low profits as compared to total investment.
AVERAGE STOCK = OPENING STOCK + CLOSING STOCK
2
(Rupees in Crore)
Year
Cost of Goods sold
Average Stock
Inventory Turnover Ratio
2006
110.6
73.59
1.5 times
2007
103.2
36.42
2.8 times
2008
96.8
55.35
1.75 times
Interpretation :
These ratio shows how rapidly the inventory is turning into receivable
through sales. In 2007 the company has high inventory turnover ratio but in
2008 it has reduced to 1.75 times. This shows that the companys inventory
management technique is less efficient as compare to last year.
2.
2006
365
1.5
243 days
2007
365
2.8
130 days
2008
365
1.8
202 days
Interpretation :
Inventory conversion period shows that how many days inventories takes to
convert from raw material to finished goods. In the company inventory
conversion period is decreasing. This shows the efficiency of management to
convert the inventory into cash.
3.
A concern may sell its goods on cash as well as on credit to increase its
sales and a liberal credit policy may result in tying up substantial funds of a firm
in the form of trade debtors. Trade debtors are expected to be converted into
cash within a short period and are included in current assets. So liquidity
position of a concern also depends upon the quality of trade debtors. Two types
of ratio can be calculated to evaluate the quality of debtors.
a)
b)
e.g.
Year
Sales
Average Debtors
Debtor Turnover Ratio
2006
166.0
17.33
9.6 times
2007
151.5
18.19
8.3 times
2008
169.5
22.50
7.5 times
Interpretation :
This ratio indicates the speed with which debtors are being converted or
turnover into sales. The higher the values or turnover into sales. The higher the
values of debtors turnover, the more efficient is the management of credit. But
in the company the debtor turnover ratio is decreasing year to year. This shows
that company is not utilizing its debtors efficiency. Now their credit policy
become liberal as compare to previous year.
4.
2006
365
9.6
38 days
2007
365
8.3
44 days
2008
365
7.5
49 days
Interpretation :
The average collection period measures the quality of debtors and it
helps in analyzing the efficiency of collection efforts. It also helps to analysis
the credit policy adopted by company. In the firm average collection period
increasing year to year. It shows that the firm has Liberal Credit policy. These
changes in policy are due to competitors credit policy.
5.
Cost of Sales
Net Working Capital
Sales
Networking Capital
e.g.
Year
Sales
Networking Capital
Working Capital Turnover
2006
166.0
53.87
3.08
2007
151.5
62.52
2.4
2008
169.5
103.09
1.64
Interpretation :
This ratio indicates low much net working capital requires for sales.
In 2008, the reciprocal of this ratio (1/1.64 = .609) shows that for sales of Rs. 1
the company requires 60 paisa as working capital. Thus this ratio is helpful to
forecast the working capital requirement on the basis of sale.
INVENTORIES
(Rs. in Crores)
Year
Inventories
Interpretation :
2005-2006
37.15
2006-2007
35.69
2007-2008
75.01
2005-2006
4.69
2006-2007
1.79
2007-2008
5.05
Interpretation :
Cash is basic input or component of working capital. Cash is needed to
keep the business running on a continuous basis. So the organization should
have sufficient cash to meet various requirements. The above graph is indicate
that in 2006 the cash is 4.69 crores but in 2007 it has decrease to 1.79. The
result of that it disturb the firms manufacturing operations. In 2008, it is
increased upto approx. 5.1% cash balance. So in 2008, the company has no
problem for meeting its requirement as compare to 2007.
DEBTORS :
(Rs. in Crores)
Year
Debtors
2005-2006
17.33
2006-2007
19.05
2007-2008
25.94
Interpretation :
Debtors constitute a substantial portion of total current assets. In India it
constitute one third of current assets. The above graph is depict that there is
CURRENT ASSETS :
(Rs. in Crores)
Year
Current Assets
2005-2006
81.29
2006-2007
83.15
2007-2008
136.57
Interpretation :
This graph shows that there is 64% increase in current assets in 2008. This
increase is arise because there is approx. 50% increase in inventories. Increase
in current assets shows the liquidity soundness of company.
CURRENT LIABILITY :
(Rs. in Crores)
Year
Current Liability
2005-2006
27.42
2006-2007
20.58
2007-2008
33.48
Interpretation :
Current liabilities shows company short term debts pay to outsiders. In
2008 the current liabilities of the company increased. But still increase in
current assets are more than its current liabilities.
Year
Net Working Capital
2005-2006
53.87
2006-2007
62.53
2007-2008
103.09
Interpretation :
Working capital is required to finance day to day operations of a firm. There
should be an optimum level of working capital. It should not be too less or not
too excess. In the company there is increase in working capital. The increase in
working capital arises because the company has expanded its business.
RESEARCH METHODOLOGY
The methodology, I have adopted for my study is the various tools, which basically
analyze critically financial position of to the organization:
I.
II.
III.
IV.
V.
VI.
TREND ANALYSIS
RATIO ANALYSIS
The above parameters are used for critical analysis of financial position. With the
evaluation of each component, the financial position from different angles is tried to be
presented in well and systematic manner. By critical analysis with the help of different
tools, it becomes clear how the financial manager handles the finance matters in
profitable manner in the critical challenging atmosphere, the recommendation are made
which would suggest the organization in formulation of a healthy and strong position
financially with proper management system.
FINANCIAL STATEMENTS:
Financial statement is a collection of data organized according to logical and consistent
accounting procedure to convey an under-standing of some financial aspects of a business
firm. It may show position at a moment in time, as in the case of balance sheet or may
reveal a series of activities over a given period of time, as in the case of an income
statement. Thus, the term financial statements generally refers to the two statements
(1) The position statement or Balance sheet.
(2) The income statement or the profit and loss Account.
OBJECTIVES OF FINANCIAL STATEMENTS:
According to accounting Principal Board of America (APB) states
The following objectives of financial statements: 1. To provide reliable financial information about economic resources and obligation of a
business firm.
2. To provide other needed information about charges in such economic resources and
obligation.
3. To provide reliable information about change in net resources (recourses less
obligations) missing out of business activities.
4. To provide financial information that assets in estimating the learning potential of the
business.
LIMITATIONS OF FINANCIAL STATEMENTS:
Though financial statements are relevant and useful for a concern, still they do not
present a final picture a final picture of a concern. The utility of these statements is
dependent upon a number of factors. The analysis and interpretation of these statements
must be done carefully otherwise misleading conclusion may be drawn.
Financial statements suffer from the following limitations: 1. Financial statements do not given a final picture of the concern. The data given in these
statements is only approximate. The actual value can only be determined when the
business is sold or liquidated.
2. Financial statements have been prepared for different accounting periods, generally
one year, during the life of a concern. The costs and incomes are apportioned to different
periods with a view to determine profits etc. The allocation of expenses and income
depends upon the personal judgment of the accountant. The existence of contingent assets
and liabilities also make the statements imprecise. So financial statement are at the most
interim reports rather than the final picture of the firm.
3. The financial statements are expressed in monetary value, so they appear to give final
and accurate position. The value of fixed assets in the balance sheet neither represent the
value for which fixed assets can be sold nor the amount which will be required to replace
these assets. The balance sheet is prepared on the presumption of a going concern. The
concern is expected to continue in future. So fixed assets are shown at cost less
accumulated deprecation. Moreover, there are certain assets in the balance sheet which
will realize nothing at the time of liquidation but they are shown in the balance sheets.
4. The financial statements are prepared on the basis of historical costs Or original costs.
The value of assets decreases with the passage of time current price changes are not taken
into account. The statement are not prepared with the keeping in view the economic
conditions. the balance sheet loses the significance of being an index of current
economics realities. Similarly, the profitability shown by the income statements may be
represent the earning capacity of the concern.
5. There are certain factors which have a bearing on the financial position and operating
result of the business but they do not become a part of these statements because they
cannot be measured in monetary terms. The basic limitation of the traditional financial
statements comprising the balance sheet, profit & loss A/c is that they do not give all the
information regarding the financial operation of the firm. Nevertheless, they provide
some extremely useful information to the extent the balance sheet mirrors the financial
position on a particular data in lines of the structure of assets, liabilities etc. and the profit
& loss A/c shows the result of operation during a certain period in terms revenue obtained
and cost incurred during the year. Thus, the financial position and operation of the firm.
It is the process of identifying the financial strength and weakness of a firm from
the available accounting data and financial statements. The analysis is
done
CALCULATIONS OF RATIOS
Ratios are relationship expressed in mathematical terms between figures, which are
connected with each other in some manner.
CLASSIFICATION OF RATIOS
Ratios can be classified in to different categories depending upon the basis of
classification
The traditional classification has been on the basis of the financial statement to which the
determination of ratios belongs.
These are:
Composite ratios
Project Description :
Title : Working Capital Management of ____________
Pages : 73
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TABLE OF CONTENTS
RESEARCH METHODOLOGY
FINDINGS
RECOMMENDATIONS
LIMITATIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
Secondary Objective:
2.
Dissatisfaction
Project Report - Training Need / Identification and Importance of
Training for Employees
relationship with other employees, he is given adequate training. Training is the act of
increasing the knowledge and skills of an employee for performing a particular job. The
major outcome of training is learning. A trainee learns new habits, refined skills and
useful knowledge during the training that helps him improve performance. Training
enables an employee to do his present job more efficiently and prepare himself for a
higher-level job. The essential features of training may be stated thus:
Increases knowledge and skills for doing a particular job; it bridges the gap
between job needs and employee skills, knowledge and behaviors
Focuses attention on the current job; it is job specific and addresses particular
performance deficits or problems
Training is necessary when a person moves from one job to another (transfer). After
training, the' employee can change jobs quickly, improve his performance levels and
achieve career goals comfortably
Training is necessary to make employees mobile and versatile. They can be placed
on various jobs depending on organizational needs.
Training is needed to bridge the gap between what the employee has and what the
job demands.
Training is needed to make employees more productive and useful in the long-run.
Training is needed for employees to gain acceptance from peers (learning a job quickly
and being able to pull their own weight is one of the best ways for them to gain
acceptance).
Importance
Training offers innumerable benefits to both employees and employers. It makes the
employee more productive and more useful to an organization. The importance of
training can be studied under the following heads:
Benefits to the business:
Trained workers can work more efficiently. They use machines, tools, and materials in a
proper way. Wastage is thus eliminated to a large extent.
There will be fewer accidents. Training improves the knowledge of employees regarding
the use of machines and equipment. Hence, trained workers need not be put under close
supervision, as they know how to handle operations properly.
Trained workers can show superior performance. They can turn out better performance.
They can turn out better quality goods by putting the materials, tools and equipment to
good use.
Training makes employees more loyal to an organization. They will be less inclined to
leave the unit where there are growth opportunities
Benefits to the employees:
Training makes an employee more useful to a firm. Hence, he will find employment more
easily.
Training makes employees more efficient and effective. By combining materials, tools
and equipment in a right way, they can produce more with minimum effort.
Training enables employees to secure promotions easily. They can realise their career
goals comfortably.
Training helps an employee to move from one organization to another easily. He can be
more mobile and pursue career goals actively.
Employees can avoid mistakes, accidents on the job. They can handle jobs with
confidence. They will be more satisfied on their jobs. Their morale would be high.
Thus, training can contribute to higher production, fewer mistakes, greater job
satisfaction and lower labour turnover. Also, it can enable employees to cope with
Environment
Finally, environment plays a major role in training. It is natural that workers who are
exposed to training in comfortable environments with adequate, well spaced rest periods
are more likely to learn than employees whose training conditions are less than ideal.
Generally speaking, learning is very fast at the beginning. Thereafter, the pace of learning
slows down as opportunities for improvement taper off.
Areas of Training
The Areas of Training in which training is offered may be classified into the following
categories.
Knowledge
Here the trainee learns about a set of rules and regulations about the job, the staff and the
products or services offered by the company. The aim is to make the new employee fully
aware of what goes on inside and outside the company.
Technical Skills
The employee is taught a specific skill (e.g., operating a machine, handling computer
etc.) so that he can acquire that skill and contribute meaningfully.
Social Skills
The employee is made to learn about himself and others, and to develop a right mental
attitude towards the job, colleagues and the company. The principal focus is on teaching
the employee how to be a team member and get ahead.
Techniques
This involves the application of knowledge and skill to various on-the-job situations.
In addition to improving the skills and knowledge of employees, training aims at
moulding employee attitudes: When administered properly, a training programme will go
a long way in obt8ining employee loyalty, support and commitment to company
activities.
Types of Training
There are many approaches to training. We focus here on the types of training that are
commonly employed in present-day organisations.
Skills training: This type of training is most common in organisations. The process here
is fairly simple. The need for training in basic skills (such as reading, writing, computing,
speaking, listening, problem solving, managing oneself, knowing how to learn, working
as part of a team, leading others) is identified through assessment. Specific training
objectives are set and training content is developed to meet those objectives. Several
methods are available for imparting these basic skills in modern organisations (such as
lectures, apprenticeship, on-the-job, coaching etc.). Before employing these methods,
managers should:
explain how the training will help the trainees in their jobs.
Team Training: Team training generally covers two areas; content tasks and
group processes. Content tasks specify the team's goals such as cost control and
problem solving. Group processes reflect the way members function as a team - for
example how they interact with each other, how they sort out differences, how they
participate etc. Companies are investing heavy amounts, nowadays, in training new
employees to listen to each other and to cooperate. They are using outdoor
experiential training techniques to develop teamwork and team spirit among their
employees (such as scaling a mountain, preparing recipes for colleagues at a
restaurant, sailing through uncharted waters, crossing a jungle etc.). The training
basically throws light on (i) how members should communicate with each other (ii)
how they have to cooperate and get ahead (iii) how they should deal with conflictfull situations (iv) how they should find their way, using collective wisdom and
experience to good advantage.
(a) Breaking away: In order to break away from restrictions, the trainee is expected to (i)
identify the dominant ideas influencing his own thinking (ii) define the boundaries within
which he is working (iii) bring the assumptions out into the open and challenge
everything
(b) Generate new ideas: To generate new ideas, the trainee should open up his mind;
look at the problem from all possible angles and list as many alternative approaches as
possible. The trainee should allow his mind to wander over alternatives freely. Expose
himself to new influences (people, articles, books, situations), switch over from one
perspective to another, -arrange cross fertilization of ideas with other people and use
analogies to spark off ideas.
(c) Delaying judgement: To promote creative thinking, the trainee should not try to kill
off ideas too quickly; they should be held back until he is able to generate as many ideas
as possible. He should allow ideas to grow a little. Brainstorming (getting a large number
of ideas from a group of people in a short time) often helps in generating as many ideas
as possible without pausing to evaluate them. It helps in releasing ideas, overcoming
inhibitions, cross fertilising ideas and getting away from patterned thinking.
The programme covers two things: (i) awareness building, which helps
employees appreciate the key benefits of diversity, and (ii) skill building, which
offers the knowledge, skills and abilities required for working with people having
varied backgrounds.
Literacy Training: Inability to write, speak and work well with others could
often come in the way of discharging duties, especially at the lower levels. Workers,
in such situations, may fail to understand safety messages, appreciate the
importance of sticking to rules, and commit avoidable mistakes. Functional
illiteracy (low skill level in a particular content area) may be a serious impediment
to a firm's productivity and competitiveness. Functional literacy programmes focus
on the basic skills required to perform a job adequately and capitalise on most
workers' motivation to get help in a particular area. Tutorial programmes, home
assignments, reading and writing exercises, simple mathematical tests, etc., are
generally used in all company in-house programmes meant to improve the literacy
levels of employees with weak reading, writing or arithmetic skills.
Training Methods
Training methods are usually classified by the location of instruction. On the job training
is provided when the workers are taught relevant knowledge, skills and abilities at the
actual workplace; off-the-job training, on the other hand, requires that trainees learn at a
location other than the real work spot. Some of the widely used training methods are
listed below.
1. Job Instruction Training (JlT)
The JIT method (developed during World War II) is a four-step instructional process
involving preparation, presentation, performance try out and follow up. It is used
primarily to teach workers how to do their current jobs. A trainer, supervisor or co-worker
acts as the coach. The four steps followed in the JIT methods are:
1.
The trainee receives an overview of the job, its purpose and its desired
outcomes, with a clear focus on the relevance of training.
2.
The trainer demonstrates the job in order to give the employee a model to
copy. The trainer shows a right way to handle the job.
3.
4.
Merits:
Trainee learns fast through practice and observation.
It is economical as it does not require any special settings. Also, mistakes can be
corrected immediately.
The trainee gains confidence quickly as he does the work himself in actual setting with
help from supervisor.
It is most suitable for unskilled and semi-skilled jobs where the job operations are
simple; easy to explain and demonstrate within a short span of time.
Demerits:
The trainee should be as good as the trainer if the trainer is not good, transference of
knowledge and skills will be poor.
While learning, trainee may damage equipment, waste materials, cause accidents
frequently,
Experienced workers cannot use the machinery while it is being used for training.
2. Coaching:
Coaching is a kind of daily training and feedback given to employees by immediate
supervisors. It involves a continuous process of learning by doing. It may be defined as
an informal, unplanned training and development activity provided by supervisors and
peers. In coaching, the supervisor explains things and answers questions; he throws light
on why things are done the way they are; he offers a model for trainees to copy; conducts
lot of decision making meetings with trainees; procedures are agreed upon and the trainee
is given enough authority to make divisions and even commit mistakes. Of course,
coaching can be a taxing job in that the coach may not possess requisite skills to guide
the learner in a systematic way. Sometimes, doing a full day's work may be more
important than putting the learner on track.
When to use coaching usefully? Coaching could be put to good use when:
following up
3. Mentoring :
Career functions: Career functions are those aspects of the relationship that
enhance career advancement. These include:
1.
2.
3.
Coaching: Mentors help mentees to analyse how they are doing their work
and to define their aspirations. Here mentors offer practical advice on how to
accomplish objectives and gain recognition from others.
4.
5.
6.
7.
8.
9.
Friendship: Mentors offer practical help and support to mentees so that they can
indulge in mutually satisfying social interactions (with peers, subordinates,
bosses and customers)
with different people and techniques in each department. Development costs can go up
and productivity is reduced by moving a trainee into a new position when his efficiency
levels begin to improve at the prior job. Inexperienced trainees may fail to handle new
tasks in an efficient way. Intelligent and aggressive trainees, on the offer hand, may find
the system to be thoroughly boring as they continue to perform more or less similar jobs
without any stretch, pull and challenge. To get the best results out of the system, it should
be tailored to the needs, interests and capabilities of the individual trainee, and not be a
standard sequence that all trainees undergo.
5
Apprenticeship Training
Most craft workers such as plumbers and carpenters are trained through formal
apprenticeship programmes. Apprentices are trainees who spend a prescribed amount of
time working with an experienced guide, coach or trainer. Assistantships and internships
are similar to apprenticeships because they also demand high levels of participation from
the trainee. An internship is a kind of on-the-job training that usually combines job
training with classroom instruction in trade schools, colleges or universities. Coaching, as
explained above, is similar to apprenticeship because the coach attempts to provide a
model for the trainee to copy. One important disadvantage ofthe apprenticeship methods
is the uniform period of training offered to trainees. People have different abilities and
learn at varied rates. Those who learn fast may quit the programme in frustration. Slow
learners may need additional training time. It is also likely that in these days of rapid
changes in technology, old skills may get outdated quickly. Trainees who spend years
learning specific skills may find, upon completion of their programmes, that the job skills
they acquired are no longer appropriate.
6 Committee Assignments
In this method, trainees are asked to solve an actual organisational problem. The trainees
have to work together and offer solution to the problem. Assigning talented employees to
important committees can give these employees a broadening experience and can help
them to understand the personalities, issues and processes governing the organisation. It
helps them to develop team spirit and work unitedly toward common goals. However,
managers should very well understand that committee assignments could become
notorious time wasting activities. The above on-the-job methods are cost effective.
Workers actually produce while they learn. Since immediat.e feedback is available, they
motivate trainees to observe and learn the right way of doing things. Very few problems
arise in the case of transfer of training because the employees learn in the actual work
environment where the skills that are learnt are actually used. On-the-job methods may
cause disruptions in production schedules. Experienced workers cannot use the facilities
that are used in training. Poor learners may damage machinery and equipment. Finally, if
the trainer does not possess teaching skills, there is very little benefit to the trainee.
Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance.
Since the trainee is not distracted by job requirements, he can focus his entire
concentration on learning the job rather than spending his time in performing it. There is
an opportunity for freedom of expression for the trainees. Off-the-job training methods
are as follows:
a. Vestibule training: In this
method, actual work conditions are simulated in a classroom. Material, files and
equipment - those that are used in actual job performance are also used in the training.
This type of training is commonly used for training personnel for clerical and semiskilled jobs. The duration of this training ranges from a few days to a few weeks. Theory
can be related to practice in this method.
b. Role playing: It is defined as a method of human interaction that involves realistic
behaviour in imaginary situations. This method of training involves action, doing and
practice. The participants play the role of certain characters, such as the production
manager, mechanical engineer, superintendents, maintenance engineers, quality control
inspectors, foreman, workers and the like. This method is mostly used for developing
interpersonal interactions and relations.
c. Lecture method: The lecture is a traditional and direct method of instruction. The
instructor organizes the material and gives it to a group of trainees in the form of a talk.
To be effective, the lecture must motivate and create interest among the trainees. An
advantage of lecture method is that it is direct and can be used for a large group of
trainees. Thus, costs and time involved are reduced. The major limitation of the lecture
method is that it does not provide for transfer of training effectively.
d.
The conference is, thus, a group-centered approach where there is a clarification of ideas,
communication of procedures and standards to the trainees. Those individuals who have a
general educational background and whatever specific skills are required such as typing,
shorthand, office equipment operation, filing, indexing, recording, etc. - may be provided
with specific instructions to handle their respective jobs.
e.
Programmed instruction: This method has become popular in recent years. The
subject matter to be learned is presented in a series of carefully planned sequential
units. These units are arranged from simple to more complex levels of instruction.
The trainee goes through these units by answering questions or filling the blanks.
This method is, thus, expensive and time-consuming.
Behaviourally Experienced Training
Some training programmes focus on emotional and behavioural learning. Here employees
can learn about behaviour by role-playing in which the role players attempt to act their
part in respect of a case, as they would behave in a real-life situation. Business games,
cases, incidents, group discussions and short assignments are also used in behaviourallyexperienced learning methods. Sensitivity training or laboratory training is an example of
a method used for emotional learning. The focus of experiential methods is on achieving,
through group processes, a better understanding of oneself and others. These are
discussed elaborately in the section covering Executive Development Programmes.
Evaluation of a Training Programme
The specification of values forms a basis for evaluation. The basis of evaluation and the
mode of collection of information necessary for evaluation should be determined at the
planning stage.
The process of training evaluation has been defined as any attempt to obtain information
on the effects of training performance and to assess the value of training in the light of
that information. Evaluation helps in controlling and correcting the training programme.
Hamblin suggested five levels at which evaluation of training can take place, viz.,
reactions, learning, job behaviour, organisation and ultimate value.
1.
2.
Learning: Training programme, trainer's ability and trainee's ability are evaluated
on the basis of quantity of content learned and time in which it is learned and
learner's ability to use or apply the content learned.
3.
Job behaviour: This evaluation includes the manner and extent to which the
trainee has applied his learning to his job.
4.
Organisation: This evaluation measures the use of training, learning and change
in the job behaviour of the department/organisation in the form of increased
productivity, quality, morale, sales turnover and the like.
5.
Methods of Evaluation
Various methods can be used to collect data on the outcomes of training. Some of these
are:
Tests: Standard tests could be used to find out whether trainees have learnt
anything during and after the training.
Studies: Comprehensive studies could be carried out eliciting the opinions and
judgements of trainers, superiors and peer groups about the training.
Cost benefit analysis: The costs of training (cost of hiring trainers, tools to learn,
training centre, wastage, production stoppage, opportunity cost of trainers and
trainees) could be compared with its value (in terms of reduced learning time,
improved learning, superior performance) in order to evaluate a training programme.
Feedback: After the evaluation, the situation should be examined to identify the probable
causes for gaps in performance. The training evaluation information (about costs, time
spent, outcomes, etc.) should be provided to the instructors, trainees and other parties
concerned for control, correction and improvement of trainees' activities. The training
evaluator should follow it up sincerely so as to ensure effective implementation of the
feedback report at every stage.
Training Programme of Company
PurposeTo establish and maintain a documented procedure for identifying and providing training
to all the employees of the organization with essential skill and knowledge so as to
achieve desired quality and productivity goals.
Training Process
Training is provided both In House and through Outside Agencies Which could be
for an individual or for group of persons as a collective training.
Training is conducted either through Planned Training Programme Emergent
Training Programme which is organized by the HRD Department
Planned TrainingThe planned training programme is drawn on annual basis both for individual and group
of persons for collective training at the beginning of Calendar Year by Manager HRD and
HRD Executive of factory. The departmental Heads drawn out the training requirements
on the training requisition slip and sent it to HID Dept. Training of the senior personnel at
Factory Is also catered for at Head Office on receipt of requirement from HRD Executive.
The annual Training Prog. at Head office is approved by from Chairman cum Managing
Director.
Annual training Prog. is prepared on format and circulated to all heads of department and
is updated. If required in case of additional training needs.
Emergent Training
The Emergent training programme is a supplementary training programme both for
individual and collective persons which is imparted during the course of work to take
care for unforeseen or uncatered training requirements arisen due to installation of new
machine, system, procedure etc.
Identification of such training need is done by the concerned HOD at Head Office and
HOD/Supervisor at factory and accordingly forwards their request. The procedure as in
case of planned training is followed there after.
Conduct of Training
HRD Head at HO & HRD (Executive) at factory ensures that identified training in their
respective areas is conducted as scheduled.
In case of External training, liaison with the agency is done and dates,
venue etc. is fixed up and concerned person is intimated through
Heads of Department.
For In-House training, date/Venue is fixed up with identified faculty
and concerned individual is informed through Heads of Department.
Besides, necessary resource/infrastructure is also provided for
effective training.
External Trainers for the Company are:
Father Son & Company
Skill & Thoughts
Logic Consultant
PURPOSE OF PROJECT
To know the effectiveness of the training programme conducted by the
company.
To know whether employees are aware about their responsibilities and
authorities or not.
To improve Organizational Climate and increase the morale of employees.
To know whether training programme is conducted successfully or not.
To know about the work culture of the organization.
Job satisfaction
Job satisfaction is in regard to one's feeling or state of mind regarding the nature of their
work. It can be influenced by a variety of factors e.g.: quality of one's relationships with
there supervisor, quality of physical environment in which they work, degree of
fulfillment in there work etc.
Locke gives a comprehensive definition of job satisfaction as involving cognitive,
effective and evaluative reactions or attitudes and states it is "a pleasurable or positive
emotional state resulting from the appraisal of one's job or job experience." Job
satisfaction is a result of employees' perception of how well their job provides those
things that are viewed as important.
There are three generally accepted dimensions to job satisfaction.
First, job satisfaction is an emotional response to a job situation, as such it cannot be
seen; it can only be inferred.
Second, job satisfaction is often determined by how well outcomes meet or exceed
expectations. For example if organizational participants feel that they are working more
harder than others in the department but are receiving fewer rewards, they will probably
have a negative attitude toward the work, the boss or the coworkers. They will be
dissatisfied. On the other hand, if they feel they are being treated very well and are being
paid equitably, they are likely to have a positive attitude toward the job. They will be job
- satisfied.
Third, job satisfaction represents several related attitudes.
Factors determining job satisfaction
Factors affecting jobs are the main factors of job satisfaction, which may be challenging
work, reward systems, working conditions, colleagues, learning and personality. Skill
variety autonomy and significance are challenging tasks, which provide maximum
satisfaction to employees. Many people feel bored if a job is too simple and routine, but
many employees also enjoy simple and routine jobs.
The job characteristics are important factors for providing satisfaction. Reward systems,
equitable rewards, equal pay for equal work, promotion avenues, etc are satisfaction
factors. Money is important to employees having unfulfilled basic needs, i.e. they require
more award and recognition.
Fairness in promotion, unbiased attitude of management, responsibilities and social
status are the factors that are said to be providing satisfaction to employees.
Working conditions influence employee's level of satisfaction. Under conducive
working condition, people prefer to work hard while in an adverse atmosphere people
avoid work. Working condition not only include physicals of the work but also the
working relationships in the organization. The physical conditions, for example, are the
light, temperature, willingness, etc. A clerk working under routine conditions likes to
work hard in an air - conditioned atmosphere with computer facilities. It increases the
working capacity of the employee.
The relationships between the employees and the managers have an important
bearing on job satisfaction.
Job satisfaction is greater in case the higher authority is sympathetic, friendly and
willing to help the employees. Employees feel satisfied when their views are listened
to and regarded by their higher authorities
Personal attitude and perceptions are the employees' angles of satisfaction, which
should be taken into consideration while motivating people to arrive at job
satisfaction
Feedback from the job itself and autonomy are two of the major job-related
motivational factors. A recent found that career development was most important to
both younger and older employees.
It commonly is manifested in ways such as checking to see how well the employee is
doing, providing advice and assistance to the individual, and communicating with the
associate on a personal as well as an official level . The other dimension is participation
Research has only demonstrated a weak negative relationship between satisfaction and
absenteeism. As with turnover, many variables enter into the decision to stay home
besides satisfaction with the job. For example, there are moderating variables such as the
degree to which people that there job are important. For example, research among state
govt. Employees has found those who believed that there was important had lower
absenteeism than did who did not feel this way. Additionally, it is important to remember
that although job satisfaction will not necessarily result in absenteeism, low job
satisfaction more likely to bring about absenteeism.
Significance of Study
Every organization desires that it will grow continuously and make and retain its position
in the competitive and continuously changing market environment. For this purpose the
employees of the organization must be skilled and talented. But all the employees may
not have the desired skills. Their skills can be improved with the help of training
programs. It is an important activity for the origination to conduct appropriate and related
programme for its employees, so that may be able to understand the terms required for
the completion of his job. This also helps the employees of the organization to know
about his job and organization very well. This also helps in better communication and
relation among the organization wants to grow rapidly, then it is essential for it to conduct
periodically training programmes for its employees to improve the skills and knowledge.
So the top management must concentrate on the training programs and
organize them in such a way that maximum number of employees wants to attend these
programs. These must be related to employees and their jobs.
offering
complete
existing
potential
shortcomings
threats
and
and
thereby
recommended suggestions.
This project however is an attempt
to share as best as possible my
experience in corporate world with
all my colleagues and my faculty.
I would be delighted to receive
readers comments which maybe
valuable lessons for my future
projects.
EXECUTIVE SUMMARY
In todays rapidly changing business environment, organizations have to
respond quickly to requirements for people. The Financial market has been
witnessing growth which is manifold for last few years. Many private players
have entered the economy thereby increasing the level of competition. In the
competitive scenario it has become a challenge for each company to adopt
practices that would help the organization stand out in the market. The
competitiveness of a company of an organization is measured through the
quality of products and services offered to customers that are unique from
others. Thus the best services offered to the consumers are result of the genius
brains working behind them. Human Resource in this regard has become an
important function in any organization. All practices of marketing and finances
can be easily emulated but the capability, the skills and talent of a person
cannot be emulated. Hence, it is important to have a well-defined recruitment
policy in place, which can be executed effectively to get the best fits for the
vacant positions. Selecting the wrong candidate or rejecting the right candidate
Data Used
There were mainly two sources of data collection
Primary data:
Survey method
Secondary data:
Study of recruitment policy
Websites
Published articles
Web sites
Journals
Magazines
Books
Findings
v
Recruitment is done throughout the year more during the months of MayJune and Oct-Nov;
Introduction
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services, it
adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent
of GDP and funds available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This itself is an indicator that growth potential for the
insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and at the same time strengthens
the risk taking ability. It is estimated that over the next ten years India would require
investments of the order of one trillion US dollar. The Insurance sector, to some extent,
can enable investments in infrastructure development to sustain economic growth of the
country.
India has come a full circle from being an open competitive market to nationalization and
back to a liberalized market again. Tracing the developments in the Indian insurance
sector reveals the 360 degree turn witnessed over a period of almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the passage
of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of insurance
in India and this may also include restructuring and revitalizing of the public sector
companies. In the private sector 14 life insurance and 8 general insurance companies
have been registered. A host of private Insurance companies operating in both life and
non-life segments have started selling their insurance policies..
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only tapped by
the state owned LIC till the entry of private insurers. The penetration of life insurance
products was 19 percent of the total 400 million of the insurable population. The state
owned LIC sold insurance as a tax instrument, not as a product giving protection. Most
customers were under- insured with no flexibility or transparency in the products. With
the entry of the private insurers the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent
of the market in terms of premium income. The new business premiums of the 12 private
players has tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart
marketing and aggressive distribution. That's the triple whammy combination that has
enabled fledgling private insurance companies to sign up Indian customers faster than
anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. Buoyed by their quicker than expected success, nearly
all private insurers are fast- forwarding the second phase of their expansion plans.
to
provide
for:
policy
proposal
documents
in
easily
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the
insurance contract.
1.2 COMPANY PROFILE
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse and Prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development.
Today, it has diversified into retail banking and is the largest private bank in the
country. Prudential plc was established in 1848 and is presently the largest life
insurance company in UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For
the financial year ended March 31, 2005, the company garnered Rs 1584 crore
of new business premium for a total sum assured of Rs 13,780 crore and wrote
nearly 615,000 policies.
The Company recognizes that the driving force for gaining sustainable
competitive advantage in this business is superior customer experience and
investment behind the brand. The Company aims to achieve this by striving to
provide world class service levels through constant innovation in products,
distribution channels and technology based delivery. The Company has already
taken significant steps to achieve this goal.
India's Number One private life insurer, ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank-one of India's foremost
financial services companies-and Prudential plc- a leading international
financial services group headquartered in the United Kingdom. Total capital
infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74%
and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer base,
we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.
FACT SHEET
THE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the first quarter
ended June 30, 2007, the company garnered Rs. 987 crore of weighted retail +
group new business premiums and wrote over 450,000 retail policies in the
period. The company has assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The
AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI
Prudential's ability to meet its obligations to customers at the time of maturity
or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private
life insurers in India. It has a strong presence across India with over 680
branches and over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,
Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank,
Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored
Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Cooperative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Cooperative Bank and Imphal Urban Cooperative Bank Limited.
Products Insurance Solutions For Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its products can
be enhanced with up to 4 riders, to create a customized solution for each policy
holder.
Savings Solutions
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It
is available in 3 options level term assurance, level term assurance
with return of premium and single premium.
HomeAssure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.
Child Plans
Health Solution
Cancer Care: is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various cancer
conditions.
Diabetes Care and Diabetes Care Plus*: 1st ever critical illness
insurance cover for diabetics.
ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The
plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each
member of the group. Employees have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time of
retirement.
ICICI Pru Group Term Plan: ICICI Prus flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy
is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
1.
2.
Accident & Disability Benefit: This rider option pays 10% the sum
assured under the rider every year till next 10 years on Accidental
Permanent Disability of 2 Organs.
3.
Critical Illness Benefit: protects the insured against financial loss in the
event of 9 specified critical illnesses. Benefits are payable to the insured for
medical expenses prior to death.
4.
Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is
available on SmarKid, SecurePlus and CashPlus
5.
Choice of Six Investment Options :ICICI prudential offers you the opportunity of selecting between investment
options to match your investment priorities.
1)
Protector:-
Maximiser :-
Balancer :An investment option with investment in a mix of equity and debt
oriented instruments.
4)
Preserver :-
Flexi Growth:New Fund (NFO) launched in March 2007, Long term returns from an
equity portfolio lare,mid and small cap companies.
6)
Regional Office :
8th floor EROS Coorporate Tower,Nehru place,
New Delhi-110011.Tel:46554405
Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi Road
New Delhi - 110055. Tel: 601 3232
ICICI Prudential Life Insurance opens office in Dubai
In a move to consolidate its position in the Gulf region, ICICI Prudential
Life Insurance (ICICI Prudential), India's No. 1 private life
insurance company, today opened its representative office in
Dubai, becoming the first private life insurer from India to open an
office in the Emirate.
Every task is undertaken with an objective. Without any objective a task is rendered meaningless.
The main objectives for undertaking this project are:
METHODOLOGY
The insurance sector is marked with a
high level of attrition and therefore recruitment
process becomes a crucial function of the
organization. At ICICI Prudential Life Insurance,
recruitment is all time high during May-June and
Oct-Nov. The attrition is high among the sales
managers, unit mangers mostly in the sales
profile. The recruitment is high during these
months due to the fact that March and September
are half year closing and business is high during
Jan-Mar. Thus it is only after March that people
move out of the companies.
Since my summer training was in the
months of May-June, it gave me the opportunity
of involving myself directly with the recruitment
process and analyzing the process so that suitable
recommendations can be given. This project is
centered on identifying best hiring practices in
the insurance industries. It therefore requires
great amount of research work. The methodology
adopted was planned in advance so as to collect
data in the most organized way.
My area of focus was the recruitment and selection particularly at ICICI Prudential Life Insurance.
I was directly involved with the recruitment for candidates for the sales profile. I was particularly involved
with the sourcing of candidates for the regions outside Delhi such as M.P, U.P and Rajasthan.
Before any task was undertaken, we were asked to go through the HR policies of ICICI Prudential
Life Insurance so that we get a better understanding of the process followed by them.
The first task was to understand the various job profiles for which recruitment was to be done.
The next step was to explore the various job portals to search for suitable candidates for the job
profile.
Once the search criteria were put, candidates went through a telephonic interview to validate the
information mentioned in their resume.
A candidate matching the desired profile was then lined for the first round of Face to Face interview in
their respective cities.
Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer was
crosschecked by the HR team. If they think that the candidate was good to hire or not.
When a candidate cleared his first round, he is then made to take an online aptitude test. We created
the online aptitude test. It the HR department, which has the exclusive rights to assign test, codes to the
candidates. Each code was unique and could be used only once by a candidate.
Once the candidate completed his first assessment, his scores were checked. If he cleared his cut-off
he was given another test.
I had the responsibility to make sure that candidates complete all formalities and had to regularly
follow up with them.
Since we received many resumes, it was essential that a database be maintained to keep a track. It was
convenient method than to stock up piles of papers. ICICI has their own database named as PACE, I
update all the records of the new joinees in that tracker. PACE containes all the information of a
candidate such as name, contact number, location etc.
Understanding what kinds of database are maintained and how they help in keeping a record.
I was also involved in maintaining a track of test codes given, the database for employee referrals,
Database for the resumes received through mails and response of advertisement.
RESEARCH METHODOLOGY
Date Source
Primary
:-
Through Questionnaires
Secondary
:-
First 1 week
Second week
Fifth week
Sixth week
Seventh week
Eighth week
Task:
The recruitment at ICICI Prudential Life Insurance involved a lot search
from the database and calling up candidates to check whether they fit
the job specification.
Difficulties:
Candidates were reluctant to talk at times;
Candidates who were contacted were not interested in Insurance on
many occasions;
Candidates who were scheduled for interview would not turn up;
Run out of database many times since most of them would have
already been contacted;
Task:
Candidates were to be searched from the job portals and called up to
be scheduled for an interview.
Difficulties:
Task:
Inter company analysis through survey and questionnaire filling.
Difficulties:
Did not secure cooperation easily;
People asked lot of counter question so convincing them was a
major task;
People did not disclose much about their employee details.
Topic Information
ACTIVITY FLOW
The organization philosophy should be kept in mind while formulating
the recruitment procedure.
The HR department would set the recruitment norms for the
organization. However, the onus of effective implementation and
compliance with the process rests with the heads of the respective
functions and departments who are involved in the recruitment and
selection process.
The process is aimed at defining the series of activities that
needs to be performed by different persons involved in the process of
recruitment, the checks and control measures to be adopted and
information that has to be captured.
Recruitment and Selection is conducted by:
HR & Branch Manager
Functional Head
RECRUITMENT PLANNING
functions/departments,
at
different
geographical
the
recruitment
of
the
budgeted
staff
and
the
preparations
in
advance
of
the
anticipated
the
recruitment
approved
annual
manpower
budget
and
no
the
position
being
considered
and
the
urgency
of
the
requirements.
meet the candidates short listed by the branch manager/VP. The chart
specifying the Minimum approval level for each level of recruitment is
specified below:
Category
Branch
Area
Business Managing
Manager/Chief
Manager/AVP/VP
Heads
Director
CSE/ADVISORS
Manager
Yes
No
No
No
BIC
BM/CM
SM
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
No
Yes
Proof of Residence.
2 Passport Size Photograph.
various
joining
formalities,
which
are
also
formally
employee
service
team
will
follow
up
Branch
the
employee
service
team
will
send
the
the
recruitment
and
selection
process
as
of
the
process
requirement,
along
with
timely
improvements thereto
Assistance to user department and line managers including in
interviewing/selection support, scheduling etc.
Effective internal communication with user departments and line
managers including making the standard recruitment formats and
other templates easily available to such users and notifying the
modifications to such formats and templates.
Creation and maintenance of qualitative information base regarding
candidates, placement agencies, campuses, institutes, and any
other employment-market information.
Creation and maintenance of appropriate and high-quality MIS for
current
and
future
needs
of
the
organization,
including
Strengths
Brand equity of Kotak Mahindra
Bank.
Weaknesses
Pre assessment tests are costly.
Conversion of footfalls is low.
Opportunities
Campus recruitments have huge
potential for fulfilling manpower
requirements cost effectively.
Tie up with recruitment agencies
on supplying fixed number of
footfalls week on week.
Develop exclusive contract with
channel partners to meet the
manpower requirements.
Make blue form brief and to the
point.
Reduce turn around time of
making an offer.
Threats
Increasing number of private
players in insurance sector creates
ample choices, frequent and easy
mobility for employees.
Same channel partners are
handling all insurance companies.
This leads to same pool of
candidates being circulated to all
partners.
Increasing spill over as a candidate
has more than one offer at the time
of making a job shift.
As the insurance industry is small,
senior level candidates hesitate to
meet HR of other companies for the
fear of grapevine.
Here at ICICI Prudential Life Insurance, the delays occur when the
outstation candidates are called for interviews at Regional branches
like Delhi and Mumbai. Sometimes, because of busy schedule of senior
managers and sometimes because of tight schedule of candidate, the
interview has to be postponed. This delay could be minimized by
scheduling interviews in the regional locations. It is recommended to
reduce the turnaround time for the recruitment and selection process.
It must be made mandatory for the candidates to take the test, filling
up forms etc within the stipulated time, this will make sure that the
candidates do not hold casual attitude and take the recruitment
process more seriously. Additionally it can send across a positive image
about the company. White space in recruitment can be compressed by
the use of IT also. Technology (such as automated or Web-based
tracking) is ideal for eliminating unnecessary steps and reducing
delays.
hours. But the Web can also be a powerful tool for screening and
qualifying that flood of resumes. Companies have begun to use the
Web to collect and instantly match data on candidate skills,
motivations, and experiences against job criteria. Other uses of
Web-based technology include online interviewing, candidate
assessment and testing, applicant self-scheduling, and tracking.
Work the Web wisely and you save time for recruiters and hiring
managers and nab top candidates before your competitors can.
It is recommended that apart from the person-job fit, method must
be
devised
to
check
for
person-organization
fit.
person-
CONCLUSION
Insurance is confronted with high attrition rate. Therefore it
makes recruitment a critical function in the organization. In order to
grow and sustain in the competitive environment it is important for an
organization to continuously develop and bring out innovations in all it
activities. It is only when organization is recognized for its quality that
it can build a stability with its customers. Thus an organization must be
able to stand out in the crowd.
The first step in this direction is to ensure competitive people
come in the organization. Therefore recruitment in this regard becomes
an important function. The organization must constantly improvise in
its recruitment process so that it is able to attract best in the industry
in order to serve the best. Thus the organization must look out for
methods that can enable it to adopt best recruitment practices.
LEARNINGS
Every endeavor undertaken to accomplish challenging goals, can only be successful
under the experienced and encouraging guidance. I am privileged to have undergone
training at ICICI Prudential Life Insurance. As learning never stops, my learning at Kotak
has come from a lot of exposure, on the job training and close interaction with the
corporate. In brief my learning and achievements can be summarized as under:
Understanding of person and profile fit.
Convince people about the job profile and to sell the job to the
prospective candidate;
Following up with the candidates during the entire selection process;
Learned to convince candidates about the offer rolled out and making
them accept the offer through effective communication;
Learning about salary fitments.
Communicating with the corporate;
Performance appraisals, its various types, implications and
significance;
Handling queries received from various quarters;
Managing HR department in the absence of HR manager;
Reply to official mails;
Prioritize issues according to their importance;
Field work exposure to tap candidates that further strengthened the
learning.
Yes
No
To some extent
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Employee Referral
Consultant
Portals
All of these.
4)Does ICICI Prudential adopt Internal Recruitment Source i.e. Transfer &
Promotion:(i) Yes
(ii) No
Qualification
Experience
Skills
Personality
8) Does ICICI Prudential ask candidates to enter into BONDS with them:
Yes
No
Yes
No