Chapter 1

RECRUITMENT AND SELECTION

1.1 Introduction:
Recruitment and Selection system in insurance sector had become vital for maximum output and effective business results. This study will provide sufficient information about recruitment and selection systems carried out in Tata Aig.

Meaning: Recruitment and Selection system refers to sourcing and building efficient human resource to the organization to attain its objectives. This policy complies with and supports the companys equal opportunities policy by : a) Ensuring that every stage of the recruitment and selection process is carried out in a systematic way based on a pre agreed criteria to eliminate the potential for personal bias affecting the decision making process . b) Ensuring that all decision points are fully documented to assist with subsequent monitoring. c) Making the whole procedure as open as possible, to ensure that all candidates understand why decisions have been taken and where they wish to obtain meaningful feedback. d) Enabling demonstration of robust, transparent processes and thereby providing a basis for defense in the event of challenge.

Analysing your workplace: To assist you analyse your workplace to identify recruitment or selection issues for women, we suggest you : Revisit your workplace profile to find where your female employees are. Consult with your employees

Examine your existing recruitment and selection policies and practices.

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

OBJECTIVES OF THE RESEARCH

The primary objective would be-:

The main purpose of the project is to study the working of TATA AIG LIFE INSURANCE and to design out candidate selection process for insurance advisor program.

The Other objectives would be: -

Analysis of positive and negative things about the various means used to carry out the recruitment process. To see the availability of people and their willingness to indulge themselves in a part time career opportunity. Finally to conclude the findings and suggest the necessary corrective measures and recommendations regarding the future growth prospects.

JOB DESCRIPTION

The objective is to design out candidate selection process for insurance advisor program. Tata AIG is looking for insurance advisors to give advice and sell insurance. And it pays as much as one wants it to. Tata AIG Life, a company that combines the trust and integrity of the Tata Group with the expertise & financial strength of American International Group, Inc. The person receives World-Class training while the marketing & management support ensures their success. So, our main aim is to look out for eligible candidates who have the time to devote and desire to earn money and then recruit and select them as financial advisors.

DETAILED JOB PROFILE

The project required me to approach people and make them aware of the part-time business opportunity that Tata AIG is offering, wherein, they will be recruited and selected as Financial Advisors. Here, not only will they earn a lot, but the growth prospects would also be open to them. For this, we collected data through various means and some of it was provided by the company as well. We were supposed to make calls to people, undertaking surveys, etc., make them aware of this opportunity and arranging appointments with our manager. After this, they were interviewed and later on selected, if eligible, for the offered work.

SWOT ANALYSIS OF TATA AIG

SWOT ANALYSIS A SWOT (Strengths, Weaknesses, Opportunities and Threats) is a tool used to provide a general or details snapshot of a companys health. An effective SWOT analysis will help determine in which areas a company is succeeding, allowing it allocate resources in such a way as to maintain any dominant positions it may have.

Strengths: Tata AIG has the strong brand name of TATA & AIG with it. It offers a good career path for advisors. ( Advisor to Business Associate to a Senior Business Associate & finally to a Managerial Business Associate) Tata AIG has a good reputation among customers. It gives Ist year highest commission. Tata AIG has a strong training support Tata AIG is the only Insurance Company in the world rated AAA by SWP. It is the only company that provides whole infrastructure to new advisors. It ensures a long-term growth for the insurance advisors.

WEAKNESS: Tata AIG is conservative in the context of advertising. It is an underwritten driven company.

OPPORTUNITIES: Tata AIG provides protection against financial loss & helps in future planning. They also provide additional rewards for advisors.

THREATS: Because of the mushrooming of the private insurance companies, there is increased competition. The training period of 18 working days/100 hrs and the fee of 1000/-, also stands as a hindrance for people who are interested to become insurance advisors.

INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA)

CHAPTER 2: PROFILE OF THE ORGANISATION

HeadOffice 8,8thFloor,TextilePlaza,M.a.Jinnahroad,Karachi Phones:(92-21)2426761-2-4&241-2955-6-7 Fax:(92-21)241-7710 E-Mail: headoffice@tatatex.com, exports@tatatex.com

THE AIG GROUP

American International Group, Inc. is the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance and AIG American General is a top-ranked insurer. AIG's global businesses also include retirement services, financial services, and asset management.

AIG's financial services businesses include aircraft leasing, financial products, trading and market making. American General Finance leads AIGs growing global consumer finance business in the United States. AIG also has one of the largest U.S. retirement savings businesses through AIG Sun America and AIG VALIC, and is a leader in asset management for the

individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate.

TATA AIG
Tata AIG Life Insurance Company Ltd. is a joint venture of the Tata Group and American International Group, Inc. (AIG). The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake.Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines.

Tata AIG

Life Insurance Company Ltd is

India's leading insurance company providing both Life

and General Insurance. It represents the trust and integrity of TATA group combined with the international expertise and financial strength of AIG, Inc. For individuals: motor, health, and accident and health n travel. For Corporate: accident n health, travel, energy, property, marine n contingency.

INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA)

ABOUT IRDA IRDA is a government body that protects the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. The way RBI controls all the banks, in the same manner IRDA takes control of all the insurance companies. It includes registrations, licensing and laying down regulations for proper conduct of business.

IRDA NORMS FOR TRAINING AS A FINANCIAL ADVISOR A financial advisor must possess a license issued by IRDA. The qualifications necessary before a license can be given are that the person must: Be at least 18 years old Have passed at least the 12th standard or equivalent examination Have undergone practical training for at least 100 hrs in life or general insurance business Have passed the pre-recruitment examination conducted by the IRDA.

MISSION

We are committed to the higher expectations of our customers. We strive for the production of best quality yarns for high value products.

VISION

While keeping fundamentals correct we shall build upon our recognition as a very good company known and established for our principled and honest business practices and higher quality standards with niche products and specialty items with a sustained growth in our capacities.

THE TATA GROUP

The Tata Group, easily India's most recognized business group, was founded by Jamsetji Tata and began with a textile mill in central India in the 1870s. From there, it has evolved into a truly diversified conglomerate spanning, among other sectors, Engineering, Energy, Chemicals, Consumer Products, and Communications & IT. The Tata Group is one of Indias best-known industrial groups with an estimated turnover of around US $14.25 billion (approximately 26% of Indias GDP). With more than 220,000 employees across 91 major companies, it is also Indias largest employer in the private sector.

The Tata Group pioneered several firsts in Indian industry firsts, including: India's first private sector steel mill, first private sector power utility, first luxury hotel chain and first international airline, amongst others. Recently, the Tata Group's pioneering spirit has been showcased by companies such as Tata Consultancy Services (TCS), Asia's largest software and Services Company, and Tata Motors, the first car maker in a developing country to design and produce a car from the ground up. The tata group stable of brands also includes many national and some internationally renowned product and service brands including:

Tata Motors (multi-utility cars)

Tata Motors, India's largest automobile company, manufactures two kinds of multi-utility vehicles: the well-appointed Tata Safari and practical Tata Sumo.

Tata Motors (Passenger Cars)

Tata Motors has a pioneering presence in India's automobile industry, best illustrated by the path-breaking creation of the Indica, a hatchback that was the country's first indigenously designed and manufactured car. Since then the company has expanded its passenger cars portfolio, which now also boasts the Indigo, a sedan, and the Indigo Marina, a station wagon.

The Taj Group of Hotels (Luxury, Business and Leisure)

JamsetjiNusserwanji Tata, the founder of the Tata Group, incorporated the Indian Hotels Company on April 1, 1902, for the ownership and operation of the renowned TajMahalPalace and Tower, Mumbai. Indian Hotels and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and, together, form the largest hotel chain in India

Tata Tea & Tetley

The Tata Group runs the world's second-largest branded tea operation. Tata Tea and Tata Tetley are the two companies that power the group's leadership drive in the worldwide tea industry.

Tata Salt

Besides tea and coffee, Tata Group enterprises are also involved in the production of food additives and spices. Tata Salt is the No 1 food brand among India's most trusted brands. India's most preferred salt is one of the purest available in the country. Moreover, Tata Salt contains the right amount of iodine, vital for physical and mental growth and development.

Titan

Titan Industries is India's leading manufacturer of watches and the world's sixth largest manufacturer brand of watches. The company makes about 7 million watches and clocks every year and has a customer base of some 60 million. It enjoys over 50 per cent market share in India's organized watch segment.

Tanishq

Tanishq, a division of Titan Industries, is India's largest jewellery brand. It has 74 boutiques in 55 cities across the country

Westside (Garment Retail Outlet)

The Tata Company that owns and operates the Westside chain of lifestyle stores, retails garments and household accessories. Set up in 1998, Westside is among the fastestgrowing retail chains in India. It has a team of dedicated merchandisers, store staff and in-house designers, and its store portfolio comprises clothes and accompaniments for men, women and children. The chain also sells household accessories, cosmetics and perfumes. The other products and brands are: Tata Steelium, Tata Shaktee, Tata Tiscon, Tata Bearings and Voltas.

By combining ethical values with business acumen, globalization with national interests and core businesses with emerging ones, the Tata Group aims to be the largest and most respected global brand from India whilst fulfilling its long-standing commitment to improving the quality of life of its stakeholders.

PRODUCT RANGE OF TATA AIG

PRODUCTS Tata AIG Life Insurance Company specializes in helping their customer in fulfilling their future financial goals and builds an extra security cover for their family and loved ones. The various products offered are:

Invest assure- Unit Linked Insurance Plan:This highly flexible plan gives you full life cover AND high returns AND the flexibility of deciding the length of your life cover term, the amount of cover you receive & where the rest of your premium is invested.

Mahalife: This exceptional policy ensures that you have a steady income and insurance coverage for life! Premiums are payable only for the first 12 years. You can even use this to create a steady stream of post retirement income.

Educare: This first of its kind juvenile endowment policy is geared toward funding your childs education. You can choose between Assure Educare 18 and Assure Educare 21, depending on your childs needs.

Shubh Life: This plan provides you 100% life insurance protection and high returns on your investment but the premiums you pay are among the lowest of any similar endowment policy.

Money Saver Plan : This savings plan provides you with cash payments in the form of survival benefits at regular intervals to fund your childs needs at critical milestones or support your financial obligations. You get the dual benefits of life insurance coverage plus the flexibility of periodic payments.

Nirvana & Nirvana Plus: This is Indias first and only pension policy with a guaranteed addition of 10 percent of sum assured every 5 years. You can choose from three levels of cover, and also decide the age you want to retire.

Star kid:An exceptional endowment policy that ensures you can afford to give your child the very best for his career & marriage.

Health Protector: The average cost for a major surgery or treatment in hospital is between three to five lakh. Health Protector is the first product of its kind in India that offers you protection in case ANYONE in your family has an accident or falls ill.

Tata-AIG Organisational Chart

Board of Directors
Chairman:

Mr. Ratan N Tata

Vice Chairman:

Mr. Noshir A Soonawala Mr. Farrokh K Kavarana Dr. Jamshed J Irani

Executive Director

Mr. R Gopalakrishnan Mr. IshaatHussain

Finance Director

Mr. R K Krishna Kumar Mr. Arun R Gandhi Mr. Cyrus P Mistry

Managing Director

Mr. Kishor A Chaukar Mr. S Ramadorai Mr. B Muthuraman Mr. Prasad R Menon Mr. Ravi Kant Tata Sons Limited Tata Industries Limited

DOCUMENTS REQUIRED

On the time of the registration, the candidate has to bring along a list of documents. These are: 6 photographs Identification proof Date of birth proof Highest Education proof Residence proof Rs. 1000/- Demand Draft favoring Tata AIG Life Insurance company Ltd. Payable at New Delhi.

MARKET SHARE OF TATA AIG

TATA AIG Life Insurance Company has said that it aimed to be the number-two private player in the life insurance industry with a market share of 20 per cent by 2011. Mr. Trevor Bull, Managing Director, Tata AIG, estimated that by 2011, private players would have about 40 per cent of the total life insurance market; currently dominated by the Life Insurance Corporation. Tata AIG Life Insurance Co. is expecting a 85-90% growth in its total premium income in 11-12 Tata AIG has 85 offices in cities, and would be opening 20-25 new offices during 06-07 to cater to a larger customer base. Profit from General Insurance for 11-12 is estimated to be 13.6 crore.

RESEARCH METHODOLOGY INTRODUCTION

Research is an art of scientific investigation through search for new facts i n a n y b r a n c h o f knowledge. It is a moment from known to unknown. Research always starts with a question or a problem. Its purpose is to find answers to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. As marketing does not address itself to basic or fundamental question, it doesn o t q u a l i f y a s b a s i c r e s e a r c h . O n t h e c o n t r a r y , i t t a c k l e s p r o b l e m s , w h i c h s e e m t o h a v e immediate commercial potential. In view of the major consideration, marketing research should b e r e g a r d e d a s a p p l i e d r e s e a r c h . W e m a y a l s o s a y t h a t m a r k e t i n g r e s e a r c h i s o f b o t h t yp e s problem solving and problem oriented. Marketing research is as systematic and objectives study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects.

3.2Research Design:
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

(JOHN.W.BEST)
Research may be defined as any organized enquiry designed and carried out to provide information for solving a problem.

(EMORY)
Research is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.

(ROBERT ROSS) Descriptive Research Design:

Descriptive research design studies are those studies which are concerned with describing the character of a group.

The researcher makes a plan of the study his research work. That will enable the researcher to save and resources such a plan of study or blue print or study is called a research design.

TYPES OF DATA

Two types of data: PRIMARY DATA SECONDARY DATA

PRIMARY DATA: Primary data is the kind of data, which is collected by the investigator himself for the purpose of the specific study. The data such collected is original in character. The advantage of this method is collections authentic. A set of Questions was put together in the form of two questionnaires. The method of sampling was the random convenient sampling method.

SECONDARY DATA: When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from journals, Reports, internet and various publications. The advantages of the secondary data can be it is economical, both in terms of money and time spent. The researcher of the report also did the same and collected secondary data from various Internet sites like google.com, yellowpages.com and many more. The researcher of the report also visited various libraries for collection of the introduction part.

DATA COLLECTION Data collected from various places such as Connaught place, Bani Park, M.I. road etc. Sample size, which has been covered, is 50. Other information related to project has been taken from company website.

Our project in Tata AIG involved the following tasks:

Recruitment: ways, sources and means Selection Criteria Selection Procedure

THE SELECTION PROCESS

SELECTION PROCESS Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. It can also be defined as: It is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Here, at Tata AIG, we have followed a series of processes in selection of a Financial Advisor.

CRITERIA FOR SELECTION Stability in Delhi: The person should be a stable Delhi resident. This ensures his having a good number of contacts & an amount of trust that people build over a person. Natural Market: This also is a very important factor. The person who is to be selected as an insurance advisor, if he has a natural market he can sell insurances to them also. Time: The candidate should have enough time and proper focus for the training as well as for the work. Desire to earn money: This is a factor that a candidate must certainly possess. It would motivate him to give out more and more business & if he will have a desire to earn money he would be more devoted toward his work.

SELECTION PROCEDURE

PROCEDURE At Tata AIG, following steps were followed by us in the selection of a financial advisor: Candidates profile sheet: As soon as the candidate comes, he is made to feel comfortable and then is given a candidate registration form to fill. The candidate is supposed to fill this form to provide us with his basic personal information. For e.g. : Candidates address. Since how long hes been residing in Delhi

His qualification His experience, if worked earlier, etc.

Preliminary interview: This is done to eliminate the candidates who are not found to be appropriate for the job.

Career Opportunity Path (COP): A seminar is held, to give a brief detail about the BA Model and the work of a Financial Advisor. He is also notified about all the details of the benefits he would get out of his job. This seminar is followed by some tea and snacks for the invitees.

Interview:Once the capable candidates are selected amongst all, they are called for a One- to-one interview with the Manager. This is carried on because : It helps in obtaining additional information from applicant. It facilitates giving general information to applicant such as, company policies, job, etc., &

It helps build Companys image among the applicants. References: Candidate is also asked for references. Previous employers, known public figures, university professors, neighbors or friends can act as references. These are required so that, once we register the selected candidate with us, we would need to confirm his information provided by him.

Selection Decision: The person is analyzed by the Manager on the basis of the above stages and is then finally selected for the job.

Registration:This is the final step. When a candidate fulfills all the above criteria, the
registration is done. The candidate is asked to fill a NAAF, NewAgent Application Form, and submit his required documents.

Chapter 4ques of this chapter I will use in questionnaire.ok

Which method does you mostly preferred recruitment and selection preferred way of recruitment?

direct indirect third party

About 65% of the mangers go for direct recruitment and selection and 32% go for indirect and only 3 % go for third party recruitment way.

What are the sources for recruitment and selection?

internal external both

About 75% of the manager say that they prefer both internal as well as external source for recruitment and selection where as only 9% go for internal source and 18% go for external sources.

What form of interview did you prefer?

personal interview telephonic interview video conferencing others

Most of the manager Prefer Personal interviews, 30% prefer to take telephonic interviews where as only 20% goes for video conferencing and rest 10% adopt some other means of interviews

Are you satisfied with round of interviews conducted?

yes no to some extent

highly satisfied not satisfied

CHAPTER 5

Conclusion, recommendation And Suggestions

CONCLUSION
With introduction of the foreign sector in the field of Insurance, it has become extremely competitive. Insurance involves tiring field work and tele contacting, the prospective customers to persuade them and convince them about future benefits of the insurance scheme. The Tata AIG, a multinational insurance concern, is busy in recruiting and selecting insurance advisors tactfully, skillfully and with expertise. In view of the competition, especially in the private sector, the Tata AIG, makes efficient sales team effort with expertise and acumen to create excellent customer relationship management with great online support and personal contacts. The Tata AIG is one of the most prominent insurance companies with international expertise and experience.

LIMITATIONS OF THE STUDY

The study results can be better applied to comparable cities and situations.

As the sample size is small, the opinions and beliefs of respondents may not represent true universe.

Personal biases of respondents may also act as hindrance towards clear picture of study.

The study was taken up in one city only and the responses may not be applicable to other cities or states.

While an attempt has been made to explore the scope, the competition and customers, developing the marketing plan for the company would require a great deal more expertise and experience.

Bibliography
We visited the following sites: www.tata.com www.tata-aig/life.com www.aig.com www.tatatex.com

Annexures

Appendix-1 Appendix-2

Questionare

. Are you satisfied with the Recruitment &Selection methods being used?
Highly satisfied Satisfied Unsatisfied Highly unsatisfied

Ques,.. which form of interview did u prefer

Options.personal Telephonic Video conferencing Others

What are the sources for recruitment and selection?

Options.,,internal External Both

Are you satisfied with round of interviews conducted?

Options Yes No

Recommendations:
The organization should provide or set up a communication lab for the benefit of the fresher and existing employees that makes a career development and new opportunity to grow up in the organization. This increases the employee morale and helps to attain the target. Communication classes should be conducted timely to all employees should be followed by the organization. Refresher courses may organize intermittently for all employees in the rank and file category to relieve job fatigue and monotony of every day work life. So employees can gain skills by communication. Candidates who enter into the job market must make sure that their efficiency in communication is up to the expectation of an organization which will make them go through the recruitment and selection system of Tata Aig Company. The respondents in the corporate exhibits that communication skills are necessary for all the employees from different channels. FOS (fleet on street) team should be made involved to pass through more communication classes from language experts.

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