The rapid distribution of technical advancement all over the world has significantly accelerated competition (Friedman 1999; Hitt and Bettis 1995) and companies are practicing a change in the basis of competitive benefit from tangible resources to knowledge and know-how (Buderi 2000; Quinn 1992). Higher officials have found that a focus only on physical resources is short-sighted, as they cannot make constant competitive benefit in the long run. On the other hand, higher human resource can help out organizations achieve such a competitive improvement. Any innovative organization that is having future vision would set its company aim dependent upon talent inherent and accumulation of knowledge in excellence human resource. Scholars then start the trend to explore the knowledge creation capability, particularly about how organisations can expand this unique capability (Nahapiet and Ghoshal 1998; Kogut and Zander 1992; Grant 1996 ;).
Modern organization exercise indicates that several chief organizations have agreed to an investment outlook in the direction of their human resource (HR). As an integral part of their human resource they are focusing on their workforce composition. At the time of recruitment the excellence of human resource is to be ensured; the most significant way a company can make sure hiring the right type of people in the first place (Collins et al. 2005). Hiring right stuff in the right place at the right time, making things benefit to both individual and organisation as a whole, is steadily becoming an arduous and multi-faceted process. Along this there will be changes in internal and external environment of the organisation, insist a more strategic outlook and more comprehensive towards the recruitment of employees.
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The main reason of this research is to understand of different proportions of recruitment procedures and observe the impact of cost reduction with the recruitment procedures. To complement and support the argument, the research studies were undergone dimensions in the Indian insurance company. This research also tries to highlight the popular methods in recruiting procedure in insurance sector.
TATA-AIG Life insurance company Ltd (TALIC) is combination of TATA group and AIG (American International Group Inc) companies. TATA group is leading companies in India and AIG is internationally leading in finance and insurance services organisation. The company capitalization of around 1800 million in which 74% is acquired by TATA group and remaining 26% bring by American group. The TATA-AIG insurance company operates from April1, 2001 and headquarter in Mumbai and operates in several parts of India. TATA-AIG Life insurance offers variety of insurance products to individuals, associations and businesses of all sizes. It serves variety of products to different categories of people. The company recruits thousands of individuals providing great opportunities to build potential career. The experience and prospective of each individual is being highlighted since it has popular name in the financial world.
Recruitment Process followed by TATA-AIG
Process 1: Chief Head of the hiring department shares the openings and job description with the hiring manager along to the hiring team.
2. Human resource department then start sourcing the vacant positions through various channels like employee referral, Advertisement in Internet etc.
3. Hiring team starts screening the CVs once they are reached.
4. Candidates are shortlisted if the CVs match the required criteria and then follow the technical round and finally HR round. The shortlisted candidate is then asked for relevant documents for further background verification.
5. The relevant documents are then forward to head office for approval and the verification is done by corporate HR team.
6. If the candidate passes the verification he/she is then given an offer letter and describe the full details of designation, salary etc in the letter enclosed.
The main function of selection and recruitment process is quality of workforce (Evenden 1993). There are many ways of practices to show the recruitment process effective. For example, to build a large applicant pool recruitment process can be better through the use of several recruiting sources (Koch and McGrath 1996). To improve their human capital organisations use selective staffing practices and wide recruitment that counts experience, higher levels of employee education etc (Koch and McGrath 1996; Snell and Dean 1992). Applicants having good skills, abilities and specialized knowledge demand a first-class in the above-market starting salaries, labour market and other recruitment incentives by signing bonuses can attract higher levels of human capital (Snell and Dean 1992).
Always on Time
Marked to Standard
Apart from the recruitment, candidate screening and selection is important, organisations follow several selective screening practices to recognize and hire employees having specialized knowledge, abilities and skills (Hunter, et al. 1982). Resource-based theory applied by Wright et al. (1994), Barney (1997) and Snell et al. (1999) in the area of employee staffing decisions have argued that organizations improve their significance by deciding human resource with specific skills remain within the organisation and general skills that are acquired in the market. Snell et al. (1999) propose that human resource abilities can be categorized by two dimensions: uniqueness of human capital and input to firm value. They define four staffing options by using this framework: obtain externally and keep; develop internally; partner and out-source. Acquire externally and keep and internal development are the two staffing opportunities that are high on the value dimension represent human resource capabilities that should reside within the organisation. According to Tsui et al. (1997) Human resource develops the capabilities should emphasising mutual investment, where both employee and employer make long term investments and open-ended in each other.
There are some dimensions in recruitment process for any organisation.
Whom to recruit
From where to recruit
How to recruit
Whom to recruit: It is the decision of any organisation to hire skilled professionals for giving good salary structure and reduce training costs or hiring unskilled professionals for less pay structure and giving them educational programmes and training programmes. It is like buying (hire high skilled professionals) or making (hire less skilled professionals) decision. Hiring less skilled employees may reduce billing cost but increase in employee turnover. In the recent survey it says that organisations hiring trained professionals from their competitors and offer them good packages and making them to stay longer in the organisation. It may effect in increase of billing wage.
From where to recruit: This stage is very important for any organisation to reduce cost on recruitment process. To reduce the costs organisations look for any third party agency those are mainly offer the required job seekers. They look into local markets or regional for any blue-collar or clerical employees and for technical employees, national and international markets for professional and managerial employees.
How to recruit: There are several methods in the recruitment process and they are considered as internal and external recruitment. Internal recruitment takes place in the means of succession planning and job posting, transfers and promotion. External recruitment takes place by means of campus recruitment, contingent workers, employment agencies, temporary help agencies, advertisements (including advertising on the newspapers, Internet etc), headhunting and job fairs or career days.
A good quality theory passes the test of application; this is particularly applicable in the framework of management science as management theory must have a behavioural orientation. The above discussed recruitment dimensions, have been tested taking the case of the Indian Insurance Sector. The testing has been done by using statistical tools of sampling, analysis, data interpretation and questionnaire administration. Analysis has been conducted on collected data to observe differences, if any, in recruitment process of organizations.
The research was conducted to examine the recruitment procedure of an insurance company TATA-AIG, India and also compare the recruitment procedure with three same level financial companies to analyse the cost reduction in sourcing of candidates. A questionnaire was prepared to interview selected recruitment team of three companies to find the best practice of recruitment procedure. The senior recruitment team was selected from the three companies and send the questionnaire for appropriate answers. The data collected from the questionnaire is then analysed to find the best recruitment procedure and find the cost reduction procedure with the dependency.
Research methodology is a way to systematically solve the research problem. It is the study to explore and identify the particular problem and collect required data, participating in field work and analyse them. In the research methodology some methods are used and in the context of the research the logic behind the methods also used. In the methodology the data collection and analyse the data in practical way and plays major role in research the project.
Research methodology followed by TATA-AIG
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In two ways the research methodology conduct
A Questionnaire was prepared to compare the recruitment procedure of three financial companies which involves the understanding of cost for whole recruitment procedure. There are some methods involved in sourcing of candidates.
The recruitment procedure of three companies and procedure of actual sourcing candidates were witnessed and examined in the field study. With the comparative study a comparison was done.
A combination of primary and secondary data was used and also known as mixed methods. A set of questionnaire was taken under primary data and conduct interviews for the selected HR team how the recruitment process undergone for three companies. The questionnaire was prepared to compare recruitment process of TATA-AIG with other three same industrial companies. This is not expensive way and gathers potential data from more than one respondent. It is the only possible way to get large number of reviews to analyse the result. A well prepared questionnaire that is used effectively gather information on both specific components of the system and also overall performance of the test system. A questionnaire is made to clearly understand about the recruitment procedure followed by these companies and reduce the cost of the process. These questionnaires will be given to selected junior level and senior level recruitment team.
In the Secondary data, collection of data will be gathering from journals, articles, literature review, scholars, magazines and internet.
A secondary data is carried out to achieve objective 1. A collect of data is taken from articles, journals, publications, company profile and other information relevant to research.
To achieve objective 2, by using primary data a questionnaire will be given to senior level recruitment team of major financial companies and interviews will be conducted to know their various levels of awareness in recruitment process.
Objective 3 can be achieved by conducting an analysis of outcome from the interviews. Last four years data was collected by using secondary data and analysis was done on comparing cost reduction on dependency. The findings of the research will be discussed and compared with the reference of literature review.
To achieve objective 4, comparison of recruitment process between same industries and find out the methods that are using to reduce the cost of the process and implement some suggestions to the company. The findings from the literature review and the results from the research were analysed to prepare some recommendations in order to achieve better business performance.
This is the inductive method of approach in the study. The research is collection of accurate data with the evidence rather than taking predictions from literature review. This approach is established through quantitative methods. This is the kind of ethno methodology to conduct interviews and is the best possible way to collect data. Theoretical approach is applied with the collection of data using questionnaire.
Recruitment process followed in your organisation?
What are the different recruitment processes in your organisation?
Any software modules using in the recruitment process? If so, what is the module?
What is the process for posting job vacancy?
Job vacancy posting through central level or department level?
What are the demands for job opening raised?
What is the preference given to the internal recruitment of candidates?
What is the hiring plan in your company? When will be the highest openings in the year?
How will you track the recruitment expenses?
Do you use job portals for recruitment process? If yes, what is the different job portals used in the process?
Do you have any achievement targets every month?
For recruitment process what are the various MIS reports maintained?
For sourcing CVââ‚¬â„¢s what are the basic steps followed by the company?
Average cost per hire?
What are different ways of sourcing CVs which affect the cost?
Comparing recruitment process in last your years is the cost increased or decreased?
What are the various steps taken to decrease the cost?
Notice pay reimbursements
Ethical Consideration & Issues
Each participantââ‚¬â„¢s individual activities would be maintained ethically and confidentially at all stages.
1. Study Literature
2. Objectives finalisation
3.Review draft literature
4.Study methodology literature
5. Read Methodology Literature
6. Findings of research approach
7. Prepare Draft Research method and strategy
8. Developing Questionnaire
9. Review Questionnaire
10. Collection of data
11. Data Analysis
12. Finalize Literature review
13. Review whole work
14. Submit to supervisor and wait for feedback
15. Final Submit