chitras summer training report

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A

PROJECT STUDY REPORT

ON

Six Weeks Summer Vacation Training With

VODAFONE

Session

2008-2011

Submitted in partial fulfillment for the Award of Degree of

BACHLOR OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:

Mr. Sharad Maheshwari Chitra ChoudharyH.O.D. B.B.A. Part II


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Govt. Engineering College, Jhalawar

(AFFILIATED TO KOTA UNIVERSITY, KOTA)

PREFECE

Summer training has been accepted as an integral part of the Bachelor of Business

Administration (BBA)

As its objective is to let the student them selves familiar with the working environment

of an organization, deal with at least some of the problems or aspects practically and tackle

or at least understand or analyze them.

This of course paves a road for them where they have to lead later. Summer training

also enables student to train themselves in applied knowledge over the theoretical learning. Ifeel privileged for having undergone my summer training at Savi Teleshop (Vodafone Mini

Store). My training in this particular organization has enriched my knowledge regarding

cement industry.

The project which I have chosen is study of HUMAN RESOURCE SCOPE OF Savi

Teleshop (Vodafone Mini Store).

The issue on which managers spend sleepless nights is Competition. Competition is

heating up day by day and captains of industry are devising new strategies to face it.To

survive in this highly competitive scenario, managers are being pressured to improve

quality, increase productivity, cut down waste and eliminate inefficiency. The collective efforts

of the employer and the employer relevance in this context. And this is where HRM can play

a crucial role.

If an organization has a motivated, competent trouble free work force, the partly must

go to the HR department. The blame goes to the same department if the opposite occurs.

Trough better recruitment and hiring induction training and development, safety and health,

remuneration, welfare communication channels and other practices, the HR department can

contribute to the quality of work life (QWL) of the employes.

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The study of HR scope is very important The scope of HRM is indeed vast.

All major activities in the working life of a worker. From the time of entry into

organisation until leaves comes under the preview of HRM. Now a days Liberalization,

Privatisation and Globalisation (LPG) has increased and it influences the HR functions. The

importance of HR is increasing in modern management. The workers are not charge

sheeted or suspended.

The HR department takes the workers in their confidence and asks their interst in

job, whether they are interested in their present job or they have to change to another

job. In this HR plays a major role, in providing training to workers in job they are interested, in

this way productivity of workers will increase and company will flourish with excellent

profit.The MNCs are progressing day by day only by proper utilizing HR Personnel andthey are part and parcel of their company. In this project I deal with HR scope of Savi


For study of HR scope activities included are recruitment, selection, induction,

training and development, performance management system, etc. to gather the information

on above activities I prepare questionnaire and personally interviewed the Head of Savi


CHITRA CHOUDHARY

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EXECUTIVE SUMMARY

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Topics Page no.

Certificate ofSavi Teleshop (Vodafone Mini Store)Preface

AcknowledgementExecutive Summary

Abstract Profile of Organization

a) Overview of Insuranceb) Overview of Future Generalic) Overview of IRDAd) Organization Structuree) Organization Chartf) Products of Future Generali

Project Worka) Past Performance of Companyb) Sales Forecasting

c) Market Analysisd) Industry Sales & Profitabilitye) Ratios of Future Generalif) PEST Analysisg) Michael Porter's Five Forces Analysis

Resultsa) Conclusionsb) SWOT Analysisc) Sample Questionnaired) Insurance Glossarye) Market Concentration for Life Insurance Industry

References of Reporta) Bibliography

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9-1213

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15-34

35-76

77-80

81

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PROFILE OF ORAGANIZATION

A) OVERVIEW OF TELECOMMUNICATION INDUSTRY:-

I.) Telecommunication Market in India:-

Telecommunication is one of the most rapidly growing industries in India. It is

considered to be a real boon not only to the country's economy but also to its inhabitants as it

has made life easier and faster altogether.

The telecom industry in India has grown phenomenally in 5 years. In 2000, the

telephone facility was available to only 3 people out of every 100 persons, whereas in 2005 it

went up to 10.66 persons as against every 100 people. This outstanding growth in the Indian

telecom industry is considered to be one of the most attractive attributes in the exponential

accretion of wireless phones across the country. The government of India is planning up for

an increase in the production of telephones by 2007 accounting for around 23 telephones in

every 100 persons by launching 250 million phones in the country. One of the largest

contributors in the alarming success of the telecom industry in India has been the wireless

market that has leaded the telecom revolution in India.

This wireless market has attracted a number of consumer attentions, which has brought

in larger investiture to India. The Total Market comprising of semi-conductors in India stood at

USD 2.82 billion in 2005 within which the telecommunication industry acquired about 45.4

percent of the total market. The telecom market in India had acquired around 8 percent of the

Indian Total Available Market for semi-conductors that were valued at USD 1.14 billion.

The equipments for telecommunication are usually imported in bulks in the name of

CBUs and SKDs. This import-trading sector in the telecommunication industry is reflected in

the Total Market and the Total Available Market. Some of the major telecommunication

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markets in India include wireless handsets found in GSM and CDMA range, wireless

switches, wireless infrastructure equipments, PBX systems, electronic push button

telephones, access network instrumentation, modems and VoIP phones. Among all these

sectors, the wireless handsets and wireless infrastructure acquires around 88 percent of the

total market of telecom industry which is considered to be the largest share in the

Telecommunication Market in India as accounted in 2004. In the Total Available Market,

wireless switches are the most leading sector, as it possesses a domestic manufacturing

base.

The Telecommunication industry in India comprises a range of semi-conductor elements

namely DSPs, Analog ICs, ASICs, and Micro controllers. While the wireless sector in the

telecom market in India was growing leaps and bounds, DSPs acquired the largest share and

brought in large dividends as compared to the other semi-conductors. The wireless sector

was not such a high-profiled one before but with the advent of ITI and other multinational

corporations, the wireless sector of the telecom market started looming large and it also

experienced a craze in the wireless equipments. It is assumed to be one of the biggest

drivers in the telecom market in the recent future.

The Telecommunication Market in India is climbing the ladder of success quite rapidly byintroducing newer and innovative sectors which are absolutely technology based as well. The

government of India has confirmed the phenomenal success of the telecom industry that will

be achieved by it in the years to come.

II.) FDI in Indian Telecommunications Industry

Telecommunications Industry is likely to face a hike from the current 49 percent to

74 percent as has been announced by the Union cabinet on 2005. For that, the Union

Cabinet will take into account the concerns of security agencies and the left parties.

This rise in the foreign direct investment in the telecommunication market in India will

enable companies like Bharti Tele-Ventures and Hutchison Essar to modulate the foreign

stakes in their companies that have already acquired a range between 67-69 percent of their

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assets. Considering the unnerving growth in the telecom industry in India which accounted for

around 30 percent every year, the Union Cabinet decided for the hike in foreign direct

investment as it will facilitate the capital inflows in the industry. The mobile segment acquires

the largest share in the Indian telecom market as it has been estimated to witness a double

rise in the past 2 years.

Finance Minister of India, Mr. P. Chidambaram has proclaimed that the decision about

increasing the foreign direct investiture in the Indian telecom market have been decided with

the aim to draw more and more capital investments in the telecom sector which is estimated

to be the capital intensive telecom sector. This step has also been planned to make the entire

system in the telecom market lucid and methodical. It has also been notified that 2

companies in the telecom sector in India have already experienced more than 49 percent of

foreign direct investment. FDI in Indian Telecommunications Industry also demands the

majority directors on the board that comprise of the chairman, the managing director and the

chief executive officer to be non-migratory Indian citizens.

The 74 shares occupied by the Indian telecommunication industry would involve all the

foreign direct investments that have mainly come from the non-residential Indians, foreign

currency convertible bonds, foreign institutional investors, convertible preference shares, anddepository receipts on an direct and indirect basis. The companies that is receiving or will

receive the foreign direct investment in the years to come are prohibited from transferring any

sort of information or data apropos foreign direct investments or things related to that to the

contributors or any destinations outside India. The step taken for the increase in the FDI in

Indian telecom industry will boost up the country's economic condition. Foreign direct

investment is one of the major contributors in the accretion of India's economy and thereby it

has been highly needed by each sector in Indian telecommunication industry. By 2007, the

telecom sector will be requiring 1,60,000 crore for development purposes among which

30,000 will come from the local markets.

FDI in Indian Telecommunications Industry is one of the most crucial parts that have

caused such a hike in the telecom market so far. India, in the past 15 years have received

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10,000 crore of foreign direct investment and 26 percent of the sum have been invested on

the cellular segment. Besides the cellular and long distance sectors, the experts have

estimated a majority of foreign investment in the sectors such as V-Sat, Public Mobile Radio

Trunked Services and Global Mobile Personal Communications Services. These segments

have till now witnessed an FDI cap of about 49 percent in totality.

III.) Telecommunication Companies in India:-

The stupendous growth of the telecommunication companies in India over the last

fifteen years can be attributed to the liberal government of India, economic policy. The

economic renaissance effected in the early 1990s brought around a paradigm shift on theoverall business scenario of India. The telecommunication companies in India went through a

huge make-over during the implementation of the open-market policy of India. The erstwhile

closed market policy was replaced by a more liberal form of economic policy. A whole new

form of Indian Telecommunication Policy was drafted to compliment the change effected in

the economic policy of India. The amendment effected the new telecommunication policy of

India made huge changes with respect to investments and entry of Foreign Direct

Investments (FDI) and Foreign Institution Investors (FII) respectively, into the virgin Indian

telecommunication market. This resulted entry of private, domestic and foreign

telecommunication companies in India.

The economic contribution made by these newly formed telecommunication companies

of India is really mentioned worthy and this industry witnessed highest growth after the Indian

Information Technology industry. The robust growth of Indian economy after the economic

liberalization in the 1990s induced massive change in the telecom policy and new draft was

framed and implemented by the 'Telecom Regulatory Authority of India' (TRAI) and

'Department of Telecommunication' (DOT), under the Ministry of Telecommunication

government of India. The main aim of these telecommunication companies in India is to

provide basic telephony services to each and every Indian.

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With the advent of private telecommunication companies in India, the industry witnessed

introduction of mobile telephones into the Indian market and it became popular amongst the

Indian masses in no time. Today two types of mobile phone service providers operates in the

Indian market, like the following -

Global System for Mobile Communications (GSM)

Code Division Multiple Access (CDMA)

The main binding objective for all the telecommunication companies operating in India are as

follows -

To facilitate telecommunication for all

Ensuring quick availability of telephone connectivity

Achieve universal service access at affordable price covering all Indian villages, as

early as possible

Providing world class telecommunication services

Solving consumer complaints, resolve disputes, and special attention to be given to

public interface

To provide widest possible range of services at reasonable prices

To emerges as a major manufacturing base and major exporter of telecommunication

equipment To protect the defense and security interests of the country

Three types of service providers exist in the Indian telecommunication sector, like the

following -

State owned companies like - Bharat Sanchar Nigam Ltd, Videsh Sanchar Nigam Ltd

and Mahanagar Telephone Nigam Ltd

Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.

Foreign invested companies like - Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea

Cellular, BPL Mobile, Spice Communications etc.

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B) OVERVIEW OF Vodafone:-

Vodafone Essarstarted its operations in India in 1994 and is under the Vodafone Group.

The company Vodafone Essar Limited has become one of the leading companies in the

telecom sector in India due to its high standard of services that it provides to its customers.

The company Vodafone Essar has its operations in 16 telecom circles of the country, which

covers around 86% of the customer mobile base in India. The company offers both postpaid

and prepaid GSM cellular mobile coverage all across India and its hold is especially strong in

the metropolitan cities. The company Vodafone Essar Limited provides services like 2G,

which are based on 1800Mhz and 900Mhz GSM digital technology. The company Vodafone

Essar also offers voice and data services.Vodafone Essar Limited has received many awards over the years such as the Best Mobile

Service in India, Most Effective and Most Creative Advertiser of the Year, and Most

Respected Telecom Company. The company Vodafone Essar Limited's chairman is Asim

Ghosh, vice chairman is Arun Sarin, and non- executive chairman is Ravi Ruia. The

Vodafone Essar subscriber bases in the cities of India are:

Kolkata - 1,632,875

Mumbai - 2,989,970

Delhi - 3,002,442

Chennai - 981,996

The company Vodafone Essar Limited plans to spend more than Rs.250 crore in

launching low price cell phones in India. The company's objective in doing this is to bring in

millions of cheap mobile handsets from around the world into the country and then sell them

under the Vodafone brand name in order to maximize sales. It is expected that the company

Vodafone Essar Limited will price the handsets in the range of Rs.666, Rs.999, and Rs.888.In this way the company expects to attract new customers and thus expand its customer

base that stands at 35 million in 2007.

Vodafone Essar plans to sell the low price handsets from its 4 lakhs distribution outlets. The

company will buy the low cost cell phones from the firm ZTE that is located in China. The

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Company ZTE will ship more than 10 million low cost cell phones to India that will then be

sold by the company Vodafone Essar. Vodafone Essar Company also has plans to expand in

the near future and for this it is planning to take a loan overseas of around US$ 500 million.

The company Vodafone Essar Limited will use the money to expand the company's network,

better its technology, and open more distribution centers. All these measures will help to

increase the customer base of the company Vodafone Essar.

Vodafone Essar is one of the topmost companies in the telecom sector in India and is well

known for the best quality of products and services offered to its customers. And this is the

reason that the customer base of the company Vodafone Essar Limited has been increasing

at a very rapid pace. The company is planning to launch low price cell phones in the country

and also expand its operations. This is sure to help the company Vodafone Essar to grow

and prosper even more in the future.

Today, in India, Hutch becomes Vodafone. Now, the pink color logo of Hutch will be

replaced by Vodafone Essars corporate red colored one.

In 2005-06, the Orange brand in Mumbai was phased out to introduce Hutch. The company

also changed the colors of its logo from orange to pink last year.

After acquiring 67 per cent of stake (around Rs. 250 crores) in Hutchison Essar from Hong

Kong-based Hutchison Whampoa, Vodafone Essar is expecting to touch over 35 million

customers across 400,000 shops and thousands of Hutchs own employees along with

employees of its business associates.

Asim Ghosh, MD, Vodafone Essar, said Weve had a good innings as Hutch in India and

today marks a new beginning for us, not as a departure from the fundamentals that created

Hutch, but an acceleration into the future with Vodafones global expertise.

Vodafone CEO and Vice-Chairman Arun Sarin of the joint venture Vodafone Essar will

be landing in India for the meeting that would discuss branding exercise, expansion plans,

spectrum requirements for its expanding subscriber base and future plans.

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We can now perhaps expect cheap mobile phones in the country with the brand-name of

Vodafone.

Company's Visions and Values:-

a.) Vision Statement:To be the worlds mobile communications leader enriching customers lives, helping

individuals, businesses and communities be more connected in a mobile world.

Our customers use mobile communications to make their lives richer, more

fulfilled, more connected. They prefer Vodafone because the experience of using

Vodafone will be the best they can find.

We will lead in making the mobile the primary means of personal communications

for every individual around the world.

Through our leadership, our scale, our scope and our partnerships, we will bring

online mobile services to the world.

b.) Values:

The essence of who we are underpins our values. As well it should. Corporate values are

only useful when they really ring true. From speaking to, and most importantly listening to,

our people we've consistently found three things sum up what we're all about:

Red - We're bold. We do what we say. We care.

Rock Solid - We make it simple. We make it happen. We're together.

Restless - We're curious. We innovate. We inspire.

Company's Positioning & Objective & Mission:-

a.) Positioning: Vodafone has veered towards warmth and emotions.

Vodafone used the powerful visual imagery of a dog.

AirTel is focused on functionality and efficiency.

Airtel chose to use music, which is not nearly as effective.

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b.) Objective:

Vodafone says that they want to be the top mobile service provider of India by the end of

the year 2010.

c.) Mission:

We will be the communications leader in an increasingly, rather it is a combination of several

things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Company's Core Team Members:-

Asim Ghosh (MD & Chairman)Arun Sarin (CEO and Vice-Chairman)Vodafone. Essar will have four members on the 12-member Vodafone Essar board Ravi

Ruia, Prashant Ruia, Anshuman Ruia and Rewat Ruia. Commenting on the deal, Ruia says,

We will form the most potent partnership in India.

C) OVERVIEW OF National Telecom Policy 1994:-

The National Telecom Policy 1994 drafted by the Department of Telecommunication

(DOT), Government of India, resulted from the fast change in the overall scenario of the

Indian telecommunication industry. Further, the National Telecom Policy 1994 of India made

a number of amendments to the preceding telecommunication policy of India. This was

affected to compliment the stupendous growth of the Indian telecommunication industry. The

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'Telecom Regulatory Authority of India' (TRAI) and 'Department of Telecommunication' (DOT)

are the two main governing bodies of the Indian telecommunication industry.

The highlights of the National Telecom Policy 1994 of India are as follows -

To facilitate telecommunication for all

Ensuring quick availability of telephone connectivity through efficient service networks

Achieve universal service access at reasonable cost, connecting all Indian villages

Providing world class telecommunication services

Solving consumer complaints, resolve disputes, and special attention to be given to

public interface

To provide the widest possible range of products and services at affordable price, to all

Indians

To emerges as a major manufacturing industry and major exporter of

telecommunication equipment

To protect the defense and security interests of India

Some notable points of the Indian National Telecommunication Policy 1994 are as follows -

Creating world class telecommunication infrastructure to meet the communication

requirements of IT, ITES, media and other IT based industry Easy and affordable access to basic telecommunication services across all the states

of India

Affordable and efficient basic telephony facility to each and every applicant

Provision for world class service to all uncovered and rural areas of India

Establishment of modern and efficient telecommunication infrastructure to meet the

requirements of modern India

Continual up gradation of the Indian telecommunication sector and provide an equal

opportunity for all the telecommunication service providers doing business in India

Strengthening R&D on telecommunication hardware and software

Efficient and unbiased spectrum management

Facilitating protection of the Indian defense and security systems

Facilitating the Indian telecommunication companies to reach global standards

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Facilitate world class products and services at affordable prices

Institutionalize the Department Of Telecommunication (DOT), Government of India

and help it function as a corporate body

To make telephone available within 48 hours of such demand

To reach tele-density of 9.91 by the end of 31st March 2007 (which has been

achieved)

Facilitate reliable communication relay media to all telephone exchanges

Provide high-speed data and multimedia connections using technologies like ISDN

across all towns, having population strength of two lakh or more

The main contributing factors for the tremendous success of the Indian National Telecom

Policy 1994 are as follows -

Investor friendly TRAI telecommunication policies

Low operational cost of telecommunication industry in the domestic market

Access to world class infrastructure at cheap cost

Availability of huge English speaking workforce

Availability of strong technical education amongst the majority of Indians

Access to huge number of science and engineering graduates

Assurance of high quality output Access to highly skilled workforce

Use of innovative technologies

High entrepreneurship skills

Good relationship with client and expansion of existing relationships

Huge success in overseas markets and easy creation of global brands

Huge untapped market, across all industries especially, in IT and ITES industries

Ever growing domestic market, especially the market in rural India offers tremendous

scope

Increased manufacturing of electronics and hardware components in India

Aggressive of R&D in telecommunication domain

Increased penetration of computers across all sections of Indian society

Increased utilization of Internet

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Steady growth of the domestic software market

Development of local language software, especially for the use of rural mass of India

Increased use of Information Technology to increase productivity

Increased use of Information Technology as a means of generating employment Increased number and quality of training facilities across India

D) ORGANIZATIONAL STRUCTURE:-

F) PRODUCTS & SERVICES OF Vodafone:-1. World calling Grids

Save up to 30% on your ISD & STD calls with World Calling Card from Vodafone for your Vodafone mobile phones.

World Calling Card from Vodafone is a Prepaid long distance calling card that you can use with your Vodafone Prepaid

and Postpaid mobile phones to make ISD & STD calls. Thats right you dont need individual ISD calling cards and

STD calling cards anymore. With the help of this Prepaid World Calling Card, you can keep a tab on your long-

distance call expenses. Plus no security deposit. Its easy to buy World Calling Cards in India. World Calling Cards are

available at your nearest Vodafone Store, Vodafone Mini Store or at any shop that displays the World Calling Card

sign.

2. Post-paid services

3. Prep-paid services

4. Vodafone handyphone

5. Vodafone PCO

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INTRODUCTION HUMAN RESOURCE MANAGEMENT

As a part of introduction to the HRM it is useful to study the evaluation of the subject.

HRM a relatively new term , emerged during the 1970s. Many people continue to refer

to the discipline by its older, more traditional titles , such as management or personnel

administration. The trend is changing. The term now a days used in industry circles is

HRM. Coming to the evaluation of HRM as a subject it may be stated that concern for the

welfare of workers in the management of business enterprise has been in existence since

ages. Experts of HRM in our country have tried to chronicle the growth of the subject only

since the 1920s. this was the period when state intervention to protect the interest of

workers was felt necessary because of the difficult condition which followed the First

World War and the emergence of trade unions.

The aftermath of the Second World War and the countrys political independence

witnessed increased and expectations of workers. During the 1960s the personnel

function began to expand beyond the welfare, industrial Relation and personnel

administration integrating into the personnel management. Simultaneously, the massive

thrust given to the heavy industry in the context of planned economic development

particularly since second five-year-plan and the accelerated growth of public sector in the

national economy resulted in a shift ; focus towards professionalisation of management.

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By the 1970s a shift in professional values was discernible. It shifted from a concern of

welfare to a focus on efficiency. In the 1980s professional began to talk about new

technologies, HRM challenges & HRO is the 1990s the emphasis shifted to human

values & productivity through people. Thus beginning in 1920s the subject of HRM has

grown into a matured profession

HRM is a management function concerned with hiring, motivating and maintaining

people in an organization. It focus on people in an organization.

OBJECTIVES OF HRM

Every organization has some objective and every part of it should contribute directly or

indirectly to the attainment of desired objectives.

Objectives of HRM are derived from the basic objectives of an organization. In order to

achieve organizational objectives integration of employees interest and employee

interest. In this light the objectives of HRM may be summarized as follows:-

1) To help the organization to attain its goals by providing well trained and well

motivated employees.

2) To employ the skills and knowledge of employees efficiently and effectively i.e.

to utilize human resource effectively.

3) To enhance job satisfaction and self-actualisation of employees by encouraging and

assisting every employee to realize his/her full potential.

4) To establish and maintain productive, self respecting & internally satisfying working

relationships among all members of the organisation.

5) To bring about maximum individual development of members of the organization by

providing opportunities for training and advancement.

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6) To maintain high morale and good human relations within the organization.

7) To help maintain ethical policies & behaviour inside and outside the organization.

8) To recognize & satisfy individual needs & group goals by offering appropriate

monetary and non-monetary activities.

9) To manage change to the mutual advantage of individual, groups, the organization &

the society.

10) To develop & maintain quality of work life(QWL) .

FUNCTIONS OF HRM

Managerial Fu

Operative Function

Planning Procurement Development Compensation Integration Maintenance

Organizing Job analysis Performance Job Motivation Health

Appraisal evaluation

Directing HRD Job Safety

Training Wage& satisfaction

Controlling Recruitment Salary Social

Executive administration Grievance security

Selection development Redressal

Bonus& Welfare

Placement Career incentives Collective schemes

planning& Bargaining Human

Induction development Payroll resource

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Conflict records

Transfer management Humanresource

Promotion Participation research

Of employeesSeparation Human

Discipline resource

Audit

IMPORTANCE OF HRM

The significance of human resource management can be discussed at four levels:-

Corporate, professionals, social & national.

SIGNIFICANCE FOR AN ENTERPRISE:-

HRM can help an enterprise in achieving its goals more efficiently and effectively in

the following ways :-

1) Attracting and retaining the require talent through effective human resource planning,

recruitment, selection, placement, orientation, compensation and promotion policies.

2) Developing the necessary skills and right attitude among the employees through

training , development, performance appraisal etc.

3) Seuring willing co-operation of employees through motivation, participation,

grievance handling etc.

4) Utilising effectively the available human resource.

5) Ensuring that the enterprise will have in future a team of competent and dedicated

employees.

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PROFESSIONAL SIGNIFICANCE

Effective management of human resource helps to improve the quality of work life.

It permits teamwork among employees by providing a healthy working environment. It

contributes to professional growth in the following ways :-

1) Providing maximum opportunities for personal development of each employee.

2) Maintaining healthy relationship and among individuals, & different work groups.

3) Allocating work properly.

SOCIAL SIGNIFICANCE

Sound human resources management has a great significance for the society. It helps

to enhance the dignity of labour in the following ways :-

1. Providing suitable employment that provides social and psychological satisfaction to

people.

2. Maintaining a balance between the jobs available and the job seekers in terms of

numbers, qualification, needs and aptitude.

3. Eliminating waste of human resource through conservative of physical and mental

health.

NATIONAL SIGNIFICANCE

Human resource and their management plays a vital role in the development of a

nation.

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The effective exploitation and utilization of a nations natural, physical and financial

resources require an efficient and committed manpower. There are wide differences in

development between countries with similar resources due to differences in the quality of

their people. Countries are underdeveloped because their people are backward. The level of

development in an country depends primarily on the skills, attitudes and values of its

human resources. Effective management of human resources helps to speed up the process

of economic growth which, in turn, leads to higher standards of living and further employment

Scope of HRM is indeed vast . All major activities in a working life of a worker from the

time of entry into the organization until leaves come under the purview of HRM. The

activities included are :- HR Planning, Job analysis and design, Recruitment ans Selection,

Induction and Placement, Training and Develpoment, Performance Management System like

(Job analysis and design, Performance appraisal, industrial relations), Welfare, Safety &

Health. In HRM categories of all these functions into seven sections :-

1) Introduction to HRM.

2) Employee hiring

3) Employee and Executive remuneration

4) Employee motivation

5) Employee maintenance

6) Industrial relations

7) Prospects of HRM.

Above all sections only 4 sections are conducted in my study , they are :-

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1) Recruitment and Selection

2) Induction

3) Training and Development

4) Performance Management System.

SCOPE OF HRM

NATURE OF HRM

EMPLOYEE

HIRING

PROSPECTS

OF HRM

INDUSTRIAL

RELATION

EMPLOYEE &

EXECUTIVE

REMUNERATION

HUMAN RESOURCE

MANAGEMENT

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At present in the 21st century , HR are expected to contribute to organization effectiveness

like :-

1) Helping the organization to reach its goals.

2) Employing the abilities and skills of the workforce effectively.

3) Providing the organization with well-trained motivated employees.

4) Increasing the employees job satisfaction and self actualization.

5) Communicating the HR policies to all employees.

6) Helping to maintain ethical policies and so socially responsible behaviour.

7) Managing change to the mutual advantage of individuals ,groups , the enterprise and the

public.

Now a days liberalization, privatization and globalization have increased. Globalization

has influence HR scope of HR is increasing rapidly. The HR department can become a

source of competitive advantage for the company.

The rapid growth of globalization has increased the number and significance of MNCs

which turning the mobility of people. Youth are attracting more towards MNCs. So the

competition from MNCs is a worry for Indian firms. As globalization spreads more . Foreign

firms are entering Indian market the challenge before domestic firms is going to be much

more sever in the years to come. Just as the success of a domestic firm depends on its

EMPLOYEE

MAINTENANCE

EMPLOYEE

MOTIVATION

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human resource. So it is a big challenge for HR department and need of HR is increasing. So

they make organization compact and include new ideas to attract youngsters.

HR scope starts in the organization with the process of forecasting future demand

and supply of right type of people in the right number . So the HR department can initiate the

Recruitment and Selection process. In scope of HR the first activity is Recruitment and

Selection. Recruitment is the process of searching for and obtaining applicant for jobs, from

among whom the right people can be selected. Recruitment is important to provide a poll of

potential qualified job candidates stay longer with the company. Recruitment process

conducted through campus interview, advertisement, and competitors.

Recruitment is important because :-

1) Determine the present and future requirement of the organization.

2) Increase the pool of the job candidate at minimum cost.

3) It helps to reduce the probability that job applicants ones recruited and selected, will

leave the organization only after a short period of time.

4) Evaluate the effectiveness of various recruiting techniques and sources for all types of

job applicants.

5) Begin identifying and preparing potential job applicants who will be appropriate

candidates.

Selection refers into the process of picking the right candidates from the pool of

application. Selection is said to be negative if its application in as much as it seeks to

eliminate as many unqualified applicants as possible in order to identify the right candidates.

Selection is significance as it has its impact on work performance and employee cost. The

HR department often in consultation with the line manager generally does selection.

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After an employee has been Recruited and Selected must be placed in right job.

Introduction of new employees to their jobs , their co-workers and the organization is known

as Induction. Induction is very important and useful because it is to relieve the new

employees from possible anxiety and make feel at home on the job. The effectiveness of an

orient action programme can have a lasting effect on absenteeism and turnover.

Successful candidates placed an the job need training to perform their duties effectively.

Training and Development constitute an ongoing process in an organization. Training and

Development is any attempt to improve current or future employee performance by

increasing an employees ability to perform through learning, usually by changing the

employeess attitude or increasing skills and knowledge. The need for Training and

Development helps remove performance deficiencies in employees.

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This is particularly true when :-

1. The deficiency is caused by a lack of ability rather then lack of motivation to

perform.

2.The individual involved have the aptitude and motivation need to learn to do the job

better.

3. Supervisors and peers are supportive of the desired behaviour.

There is greater stability, flexibility and capacity for growth in an organization. Training

contributes to employees stability in at least two ways. Employees become efficient after

undergoing training. Efficient employees contribute to the growth of the organization. Growth

rendors stability to the work force. Further, trained employees tend to stay with the

organization. They seldom leave the company. Training makes the employee versatile in

operations. All rounders can be transferred to any jiob. Flexibility is therefore ensured.

Growth indicated prosperity, which is reflected in increased profits from year to year.Accidents, scrap and damage to machinery and equipment can be avoided or minimized

through training. Even dissatiafaction, complaints, absenteeism and turnover can be reduced

if employees are trained well. Training is an investment in the HR with a promise of better

returns in future . Through no single training programme yields all the benefits presented in

the exhibit, the organization which devotes itself to training and development, enhances its

HR capabilities and strengthens its competitive edge. At the same time, the employees

personal and carrer goals are further generally added to his or her abilities and value to the

employer.

For training a multitude of methods are used to train employees. Training methods are

categorized into two groups :-

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1) On-the-job &

2) Off-the-job methods.

On-the-job methods refers to methods that are applied in the workplace, while the

employees is actually working. It is most effective method as the trainee learns by

experience, making highly competent. In this the most used techniques are case study, role-

playing, vestibule, sensitivity, simulation, programmed instruction, computer-assisted

instruction.

Off-the-job methods are used away from workplaces. Training techniques represent

the medium of imparting skills and knowledge to employees.

PERFORMANCE APPRAISAL:-

Performance appraisal refers to the assessment of an employee actual performance,

behaviour on the jobs, and potential for future performance. Appraisal has several objectives

but the main purpose are to assess training needs, to affect promotions and to give pay

increase. It is important because it offers comp[etitive advantage to a firm by improving

performance, helping make correct decisions, ensuring legal compliance, mimimizing job

dissatiafaction and employee turnover and ensuring consistency between organizationalstrategy and behaviour.

Numerous methods have been devised to measure the quantity and quality of

employees

job performance. Broadly, all the approaches to appraisal can be classified into :-

1) Past-oriented Methods.

2) Future-oriented Methods.

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Past-oriented methods are as follows :-

1. Rating scales Method.

2. Checklist Method

3. Forced choice Method

4. Forced distribution Method.

5. Critical incidents Methods.

6. Behaviorally Anchored Rating Scales Method

7. Field Review Method.

8. Performance tests and Observations.

9. Confidential Records.

10. Essay Methods

11. Cost Accounting Method.

12. Comparative Evaluation Approaches.

13. Ranking Method.

14. Paired-comparison Method.

Future oriented methods are as follows :-

1. Management by objectives (MBO).

2. Psychological Appraisals

3. Assessment Centers.

4. 360-Degree Feedback Mathods.

For measures the quantity and quality of employees job performance the methods are

Rating Scales,Checklists, Forced Choice, Tests and Observations, Essay Method other

future oriented techniques are Management by Objective, Psychological Appraisal and 360-

Degree Feedback.

Job design involve tasks, functions, relationship, the reward and the qualification required

like skills, knowledge and abilities for each job in away that meets the needs of employees

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and the organization. The practice in designing job has be simplifying the tasks to be

performed. This usually results in making jobs highly specialized. While, specialization has

may advantages, it can result in boredom and even gradation or the jobholder. The

significance of job design need not to be overemphasized. The design of jobs has a critical

impact on organization and employee objectives. From the organization perspective, the way

tasks and responsibilities are grouped can affect productivity and costs. For an employee,

the match between job factors and personal needs affects motivation and job satisfaction.

JOB DESCRIPTION :-

Job description implies objective listing of job title, tasks, duties and responsibilities

Involved in a job.

JOB SPECIFICATION :-

It involves listing of employees qualification , skills and abilities.

They both are important. Job description plays important role in organization. Through

this employees can know what is the job title and what objective he has to complete by

keeping duties and responsibilities in his mind. Job specification tess about the qualification,

skills and abilities of the employee require performing the jobs. So it should be clear.

Industrial Relation is concerned with the relationship between the management and

workers and the role of any regulatory mechanism in resolving any industrial dispute. It is

significant as it has an impact on productivity and has ethical dimensions.

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PROJECT WORK

a.) Past Performance of Company:-

b.) Sales Forecasting:-

c.) Market Analysis:-

d.) Industry Sales & Profitability:-

e.) Ratios of Future Generali:-

f.) PEST Analysis:-

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2007-8 2006-07 2005-06 2004-05 2003-04

rofit/loss -14420 -16545 -15348 -5574 -693

ales 2125 1082 719 748 763


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PEST Analysis is an analysis of the Company at a broad macro level and examines the

Company under the headings of Political, Economic, Social and Technological factors.

This includes the following factors:

i.) Political Factors:-

Governmental and legal issues affecting how the company operates.

Regulation

Infrastructure

Banning of phone use in certain circumstances

Health issues

ii.) Economic Factors:-

Economic:- Factors influencing the purchasing power of customers and the

company's cost of capital.

Cost of 3G licenses

Cost of calls being driven down

Worldwide recession

Third world countries

iii.) Social Cultural Factors:-

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Social:- Demographic and cultural aspects of the environment which influence customer

needs and market size.

Health Issues

Demographics

Social Trends

Picture phones

Mobile Etiquette

Saturation Point

iv.) Technological Factors:-

3G

UMTS (2.5G)

GPRS/WAP

SMS / MMS

g.) STP Analysis:-

i.) Segmentation:-

Income

Age

Service Usage

Nature of Customer

Institutional

Sole Life of the service

Geographical condition

ii.) Targeting:-

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Vodafone is adopting a multi-segment approach. They are offering a series of differentiatedproducts to their respective markets.

Home calling cards for the family of those professionals who use to work abroad.

Rs.10 recharge for small users Cheap SMS facility for youths

Facilities for circle users

iii.) Positioning:-

Where you go the network follows you

Hutch, as a brand, always tried to connect with consumers in a simple, honest and

real manner, while Vodafone is a more young and fun brand. So consumers will see

a shift reflecting a more vibrant brand.

The Pug and the actor Irfan Khan will be retained for the brand promotions.

They are talking about the exclusivity of the network and the services they are

offering to the consumers.

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CONCLUSION

Future Generali has established itself as a distinctive life insurance brand with aninnovative, attractive and customer-friendly portfolio ranging from protection, savings,

retirement and investment plans; which it sells through a unique tool-The Life Maker.

Agent must have full knowledge of the products of company and good Public Relation

& communication skills.

Agent must be engrossed with marketing & selling techniques and must have friendly

approach towards his customers and must keep the insurers records for long- term

usage.

Customer shall be satisfied with the services of an Agent & Agents efforts should be

distinguished appreciated by the company.

Agent shall work in the direction of providing its customer maximum comfort & best of

services.

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Future Generali is rich in services & produces a wide range of products for various

needs. Further it requires making more efforts to advertise its products through Agents

& other Media.

MARKET EXPANSION:

There has been an overall expansion in the market. This has been possible due

increased awareness levels, thanks to the large number of advertising campaigns launch

by the players. The scope for expansion is still unlimited as virtually all the players

concentrating on large cities and towns, except for LIC, which made a significant effort to

the rural market.

NEW PRODUCT OFFERING:

There has been a plethora of new and innovative products offered by the new playe

mainly due to the stability of the customers of the international partners which range from

large variety of products from pure terms (risk) insurance to unit-linked investment produ

Customers are offered unbundled products with a variety of benefits as riders, from wh

they are to choose. More and more customers are buying products and services based

their true needs and not just traditional money back policies, which are considered v

appropriate for long-term protection and saving. However, there are still some key products

be introduced, such as, health products.

CHANNELS OF DISTRIBUTION:

Till the last two years, the only mode of distribution of life insurance products was

insurance agents. While agents still continue to be the predominant distribution channel, to

a number of innovative alternative channels of distribution are being offered to the custom

Some of them are banc assurance partners, brokers, and direct marketing. The widespre

reach of bank branch network in India could lead to banc assurance emerging as a signific

distribution mechanism.

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SWOT ANALYSIS

STRENGTHS:

The strengths are:

Future Generali is the third largest player in the insurance industry in India

Generali is a 176 years old company (founded in Italy)

The Future Group operates through five verticals:

1. Future Retail 2. Future Capital 3. Future Brands

4. Future Space 5. Future Logistics 6. Future Media

Generali is an international group present in more than 40 countries with insura

companies

WEAKNESSES:

The weaknesses are:

Some customers are not satisfied with the service of Future Generali

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Only 24 branches all over India

High insurance-period duration

High premium

Low awareness of Future Generali in rural areas

OPPORTUNITY:

The opportunities are:

Huge opportunity in insurance market.

Better products as compared to other industries.

Due to increase in literacy rates, literate people prefer Future Generali.

Future Generali gives opportunity to other businesses to grow in the market.

THREATS:

The threats are:

Tough competition from LIC, ICICI, BAJAJ ALLIANCE, HDFC SLIC and BIRLA SUN LIF

Due to low premium, rural markets prefer LIC

Threat for Future Generali because over 12 new companies are entering the market

Currently, Future Generali is the 7th player in the market, and the major threat is to sustainthat position in the face of competition

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SAMPLE QUESTIONNAIRE

Please (Tick Any One)

1. Do you have knowledge about insurance?

No knowledge Below Average Average Good

2. Do you think insurance is necessary?

Yes No Cant Say

3. How do you think insurance as a saving/investment option?

Not Good Good Very Good

4. Where do you prefer to invest your money?

Bank MF/Share Market Insurance

5. What type of insurance do you think is good?

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Short Term (less than 5 years) Long-Term (greater than 5 years)

6. Do you have any insurance policy?

Yes No

7. What do you expect in terms of benefit from your insurance policy?

Safety of money invested Return Risk covered

Market Concentration for Life Insurance Industry

Market concentration is a function of the number of firms in a market and their

respective market shares. As an aid to the interpretation of market data, the Agency will use

the Herfindahl-Hirschman Index ("HHI") of market concentration. The HHI is calculated by

summing the squares of the individual market shares of all the participants, unlike the four-

firm concentration ratio, the HHI reflects both the distribution of the market shares of the top

four firms and the composition of the market outside the top four firms. It also gives

proportionately greater weight to the market shares of the larger firms, in accord with their

relative importance in competitive interactions.

The Agency divides the spectrum of market concentration as measured by the HHI

into three regions that can be broadly characterized as unconcentrated (HHI below 1000),

moderately concentrated (HHI between 1000 and 1800), and highly concentrated (HHI above

1800). Although the resulting regions provide a useful framework for merger analysis, the

numerical divisions suggest greater precision than is possible with the available economic

tools and information. Other things being equal, cases falling just above and just below a

threshold present comparable competitive issue.

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BIBLIOGRAPHY AND REFERENCES

BOOKS:

The investment pattern of Indian Consumer, P.R. Desai, BPB publications

Financial Management, I M Pandey

Marketing of Insurance Products, V K Badya, Rustagi publihers

Annual Report of IRDA 2007

IC Life Insurance Text Book 2007

WEBSITE:

www.futuregenerali.in

www.irda.org

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http://www.futuregenerali.in/http://www.irda.org/http://www.vodafone.com/hub_page.htmlhttp://www.futuregenerali.in/http://www.irda.org/


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www.sebi.org

www.thehindubisunessline.com
http://www.sebi.org/http://www.thehindubisunessline.com/http://www.vodafone.com/hub_page.htmlhttp://www.sebi.org/http://www.thehindubisunessline.com/

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