Thursday, December 5, 2019
Recruitment and Reward Management Management Practice
Questions: Write on two HR related topic for the following company that should be in 2000 words. HR Topic to be written on: 1. Recruitment includes: Recruitment Employer Branding Induction Labour Market Selection and Assessment 2. Reward Management includes: Reward Management Bonuses and Incentives Employee Benefits Pensions Salary Surveys Answers: Introduction This is a report on Human Resource Management in an Indian bank namely as HDFC. This is an Indian banking organization and a financial company. Headquarter is in Mumbai, India. The founder of the group is Mr. Hasmukhbhai Parekh in the year of 1994. The current CEO of the company is Aditya Puri, and the total assessment of the company is 6.8792 trillion INR. The production of the bank includes Investment banking, investment management, wealth banking, private banking, corporate banking, consumer banking, credit banking and finance and insurance. The current number of employees is approximately 77,220. The selected topics for the assignment are recruitment and reward management. This report will analyze recruitment, employer branding, induction, labor market, selection, and assessment. The reward management system will examine reward management, bonuses, incentives, employee benefits, pensions and salary survey. Recruitment process Recruitment Recruitment is a process of hiring appropriate candidates in a suitable position for the company. The method initiates with the selection and ends up with an appointment. Hiring process plays a vital role in position maintenance of the bank (Armstrong and Taylor 2014). Recruitment might be direct, or it may be indirect. The primary purpose is to create a talent pool of candidates to enable the selection of the best candidate for HDFC. The organization follows the steps for recruitment process: Application: This is the initial process of hiring. The bank first, checks for the total vacancy. Online application and traditional use both are available for HDFC bank. The job description is provided by the bank so that the candidate will come to know about the exact requirement of the organization (Renwick and Maguire 2013). The applicant applies for their good posts in the bank. The selection team sort lists all the eligible candidates then contact them for the first step of the entrance. Entrance examination: The next step is written the review and some time online aptitude test. Then the selected candidates are allowed to give the next written exam. In the case of online study, the eligible candidates give online exam from allotted center. Personal interview: Officially, this is the last step the shortlisted candidates are called for the final round personal interview. HDFC Bank prefers the student from mathematics and commerce background. Now they are recruiting a student from a different origin. According to the vacancy and the branding of the candidates, the interviewer selects the candidates. They are the finally hired. In interview interviewer, look at the entire presentation of the candidate. Along with his knowledge the posture, gesture, facial expression, body language and culture is also calculated (Bratton and Gold 2012). Figure 1: Recruitment process (Source: Kalleberg 2013, pp 897) Employer branding Employer branding is a process executed by the Human Resource department of HDFC. It includes the HR strategy in the business marketing process, innovation in the field of recruitment, change in career development, talent management, and excellence in the area of training. The bank organizes award functions according to the performance of the employees. There are different departments they perform various tasks. The company arranges training based on the fulfillment of the candidates. The employees who are unable to give a good performance hamper the entire function of the bank. According to the needs, the company provided training for those employees (Tyson 2014). The social structure, culture of the bank is very active towards the competitive marketplace. The HR department of the bank makes a nomination list. On a yearly basis, they provide award to the best employee of the company. On the other hand, the Global HR Excellence Award is presented based on the overall performance of t he bank. In the year of 2008, HDFC Bank received the employer brand of the year award (Wang and Wang 2014). The bank introduces much innovative and creative activity in the employee's performance that is unique than the others. From the discussion, it is transparent that, the employer branding is dependent on the overall performance of the company. The overall activity is the partly reliant on the fulfilment of the individual. Induction Induction session takes place after the recruitment method. The HR department of the bank makes this course. The HR executive gives an introduction to the banks background to newly arrived employees. Company policy, other rules, regulations are also described by the HR in details to them. Once the candidate selected for the job the annual package, the HR of the bank undertakes the joining details. The HR. describes the legal acts, laws the employees should follow during the office hour (Nickson 2013). Any wrong information provided by the HR during the induction session put bad impact on the employees. There is several adverse result of false induction given by the HR. The newly recruited employees get their first impression of the induction process. The description of the background of the bank should be mentioned in details to the employees so that the employees get a clear view of the company (Johnston and Marshall 2013). Labor market The labor market is the place of interaction between the workers and the workers of the bank. Here the employers can hire the best employees for the bank. The workers are capable of completing the task t satisfy the job. In every bank, the objective of the labor market is same. The aim is to highlight the concepts and the historical background of the labor protection in the organization and globally (Griffin 2013). The purpose of the labour market is to build a configuration of demand, quantity, supply and wages. Equilibrium of labor along with the market status is important to be balanced to calculate the position of the bank in the competitive marketplace. Workers cannot be a subject related to market forces (Banfield and Kay 2012). Selection and Assessment The HR department measures the performance level of individuals. In HDFC, the employees have an opportunity to evaluate themselves (Kittur et al. 2013). Again, after self-evaluation the company evaluates the performance of individual employees. The selected candidates are appropriate for the allotted position or not are assessed by evaluation test. This official test is also known as assessment test. The result of the examination decides whether the employee will have any promotion or not (Kittur et al. 2013). There is mainly two major recruitment process are maintained in HDFC bank. These are internal recruitment and external recruitment. Promotion, transfer methods are included in internal recruitment and selection of new candidates is external recruitment. Sometimes in the final interview round the interviewers are searched for references. It means if there are any references then the candidate got selected trough a natural selection procedure. Reward management system The reward management system analyzes different aspects related to reward management of HDFC bank, bonuses, incentives, employee benefits, pensions and annual salary survey. According to the performance of the employees the promotion, hike in salary is calculated. The HR department rewards the best performer of the company and the overall good performance rewards he entire company. The reward management system includes the entities such as- reward management, bonuses, incentives, employee benefits, pensions and salary survey (Hislop 2013). The finance department of the bank measures the reward management. Similarly, the HR department arranges the award ceremony. Bonuses The bonus payment is an additional amount calculated by the finance department of the bank. The overall performance of the bank and individual employee performance measures the amount of bonus. In HDFC, the bonus is provided for some pre-allotted period. The employees of HDFC get a bonus in the year ending. It is a kind of motivation to the employees. There are many branches of HDFC bank throughout India. The culture on which the bank is based on providing bonus on that predefined period. Again, on a performance basis, they also get bonus money (Snelgar, Renard and Venter 2013). Incentives The gift is different from incentives. Incentives are variable payment whereas bonus is a fixed amount given to the employees. Incentives depend on individual performance. The motivation is defined as a variable amount tied up with the fulfillment of the employees. Monthly salary is a mandatory award, but incentives are not necessary for the total employee. They do not provide the incentives to the junior level employees (Kalleberg 2013). In HDFC, incentives are calculated by the performance of the customer. HDFC gives one of the best incentives structure in the banking industry to the deserving candidates. The earning of the customers changes according to their changing performance level. In HDFC, the appraisal took place after six months. The hike depends on the critical parameters avail for the company itself. Apart from the performance level, there are certain other perspectives such as- culture, the behavior of the employee is also the parameters included in the measurement of t he incentives. The pension plan of HDFC is known as HDFC life guarantee pension plan (Stredwick 2013). There is a fixed amount added every -time called as promised addition. The key features of HDFC pension plan include the following: For each completed policy year there is an addition of 3% of the total sum assured. A lump sum vesting addition at vesting There is a choice of premium paying terms of sometimes 5 or 6 or 10 years. It guarantees death benefit that is equal to the total premium paid to date accumulated at the rate of 6% per annum. There are certain steps to be followed by the employees of the company and buy the account holders (Kalleberg 2013). Employee benefits HDFC is very much concern about the advantages of the employee. HDFC serves family health plan and women savings account. Compare to other private banks in India HDFC gives a better opportunity to the employees. The salary scale is better than the other bank. Some incentives are measured based on the performance of the employee. It includes the culture, behavior of the employees during the office hour. The lower level employees do not get the incentives (Stredwick 2013). The appraisal took place in the gap of six or seven months. They get the facility of pension that is not valid in most of the private banks. There is a bonus facility provided to the employees for motivation. Based on their performance level they get the incentives. These are the different aspects allotted to calculate the benefit of the employees (Hislop 2013). Pensions There are different survey reported that HDFC bank gives the best pension policy to the customers. After the death of the employee, the employee family will get the pension that is known as non-participating pension payment. The pension amount is dependent on the quantity of the salary of the employee. An active planning is necessary for the employee of the company. If the employee died then, the pension money would be provided to the family. The employees have the option to plan the vesting amount and to choose the premium amount. The entities that are closely related to the pension of HDFC are a revival, surrender, grace period, lactation, benefits and policy proceeds and paid up (Barbulescu and Bidwell 2013). The plan can be fulfilled by following certain terms and conditions. This idea can be taken only by a single life. They give a choice to the employees to select the year he or she wished to get the retirement. Based on the premium amount chosen by the employee the sum assured on the vesting. The customers can select the premium payment process according to their wish It might be annually or half yearly, or it may be quarterly. Sum assured on the vesting amount is the absolute amount of benefit that is guaranteed to become payable on vesting as per the terms and conditions are given in the policy of HDFC (Kittur et al. 2013). There is a time provided after the premium due date during which the system is considered to be in force with a covered risk. This plan a grace period of early 30 days in a year. The grace period f monthly frequency is 15 days from the premium due date. Annual salary survey The annual salary survey is a report analyzes salary data for all professional staff working for the bank (Griffin 2013). The annual salary survey includes the beginning, median, sex, experience year, median, average wages by race, geographic region, a professional position for research, law, and the medical libraries are covered. The annual survey measures the data related to the salary. The data are used to determine whether salaries rare competitive equitable across institutions and different personal characteristics (Banfield and Kay 2012). At the year ending, the employees get a fixed bonus amount. Figure 2: Annual Salary Survey (Source: Barbulescu and Bidwell 2013, pp 739) Conclusion After the overall analysis of this business report, it can be concluded that HDFC adopted recruitment process by following few steps including application, entrance examination, and personal interview. This research report analyzed the importance of employer branding for HDFC bank. It also discussed the advantage of induction, labor market, selection and assessment of HDFC. 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