RECRUITMENT PROCESS

UNITED INDIA INSURANCE CO. LTD.

NITISH SAXENA
FY MBA - 15531006

About United India Insurance Company Limited

The United India Insurance Company Limited was incorporated as a Company on 18th
February 1938. General Insurance Business in India was nationalized in 1972. 12 Indian
Insurance Companies, 4 Cooperative Insurance Societies and Indian operations of 5
Foreign Insurers, besides General Insurance operations of southern region of Life
Insurance Corporation of India were merged with the United India Insurance Company
Limited.
After nationalization, United India has grown by leaps and bounds and has amassed an
18300 work force, spread across 1340 offices providing insurance cover to more than 1
crore policy holders. The Company has a variety of insurance products to provide
insurance cover - from bullock carts to satellites.

Understanding Recruitment
DeCenzo and Robbins describe recruitment as the process of discovering potential
candidates for actual or anticipated organizational vacancies. It is a linking activity
aimed at bringing together those with jobs to fill and those seeking jobs.
According to Edward Flippo, recruitment is the process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organisation.
A number of factors such as the size of the organisation, the employment conditions in
the community, reputation of the organisation, working conditions and salary and
benefits offered by the organisation affect the recruitment process. Ideally, the
recruitment process should ensure that for every position available in the organisation,
there are sufficient number of qualified applicants.
In very large organization, recruitment is a complex and continuing process that demands
extensive planning and effort. It is usually the second most expensive HR process (after
Training and Development) and differs from organization to organization depending on
its structure, sector of operation, financial constraints etc.
United India Insurance Company Limited, being wholly owned by the Government of
India, follows a centralized recruitment procedure. Without going into too many details,
the following pages will attempt to discuss the companys standard recruitment
procedure.

Recruitment Planning
In order to increase efficiency in hiring and retention, and to ensure consistency and
compliance in the recruitment and selection process, it is imperative that considerable
time be invested in the Recruitment Planning process. A Recruitment Plan is a way for
businesses to analyse people and skills, identify skill gaps, focus on employees who may
potentially leave and detail future leadership pathways.
However, unlike private sector companies, United India Insurance Company Limited
does not opt for lateral hiring (a lateral hire is someone hired "from the side", meaning
at the same experience, wage level and position as their previous job). Therefore, attrition
is countered by promotion/transfer of existing employees to vacated positions.
Recruitment is carried out for hiring new Scale 1 employees (officer cadre) via a
centralized procedure mandated by the Government of India, and carried out by all 4
General Insurance Companies as well as Life Insurance Corporation of India.
All newly selected candidates are hired at the position (different from post) of
Administrative Officer (A.O).
Requirements (and number of vacancies) are ascertained by the HR Department at the
Corporate Head Office in Chennai by consulting with Regional Offices across the country.
The Regional Offices submit detailed reports to Corporate HR after thorough
deliberations with their respective Divisional and Branch Offices.
From these reports, Corporate HR takes a call on the final number of vacancies to be
filled in a future round of recruitment. This state-wise number is also shared in
advertisements.

Sourcing & Budget Considerations

Being wholly owned by the Government of India, United India Insurance Company
Limited is under obligation to put greater emphasis on procedure rather than costs.
While private sector companies may publish advertisements only in select cities, it is
mandatory for a public sector company to announce its recruitment plans by submitting
an advertisement in at least 2 leading English dailies and 2 vernacular publications
printed in the States and Union Territories of India.
Apart from newspapers, application form and other details are also put up on the
company website and shared with leading sources of information online (blogs, forums
etc.) and offline (banks, post-offices, public libraries, government owned educational
institutions, offices of other PSUs etc.)

Screening (Examination & Interview)

All candidates are required to appear for an all-India examination conducted by the
Government of India, under the assumption that they fulfil every requirement of
eligibility. The duration of the examination (now conducted online) is 2 hours, where
candidates are tested on their Reasoning Skills, English Language, Numerical Ability,
General Knowledge and Computer Knowledge.
Candidates also have to qualify in a Computer Proficiency Test for final selection. No
separate marks are awarded for the Computer Proficiency Test. However, it is taken for
qualifying purpose.
Shortlisted candidates are interviewed by a panel of resource persons not employed by
the company. This panel consists of senior or retired experts from various industries in
the fields of finance, human resources, marketing etc. The number of shortlisted
candidates is usually 5 to 10 percent more than the number of vacancies in the company.
Different panels sit in different regions of the country for making it convenient for
candidates to appear in the interview.
Final selection is made on the basis of performance in the Online Test, Interview and
Computer Proficiency Test taken together. Merely satisfying the eligibility norms does
not entitle a candidate to be called for Online Test/Computer Proficiency Test/Interview.

Probationary Period
The newly appointed employees are kept on probation for a minimum period of six
months. Before the probation period comes to an end, the performance of the newly
recruited employees is evaluated and the probation period of those employees whose
performance fails to meet Companys expectation, is extended.