lic final project

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CHAPTER-1

INTRODUCTION

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HUMAN RESOURCE DEVELOPMENT

All aspects of Human Resource Development focus on developing a more efficient

workforce, capable of serving the organization and the customer in a better manner.

Human Resource Development includes the organizational function that deals with the

human beings and matters like compensation, hiring, performance management, and

training. Each person in the organization is a Human Resource.

Don McIntosh differentiates Human Resource Management (HRM) and Human

Resource Development (HRD). He concludes, "In practical terms, the core practice of

HRD consists of two major areas of activity: training and development, and

organizational development."

It is a matter of general acceptance that the goal of HRD is improvement of the

performance of the organization by maximizing the efficiency and performance of

people. That is, HRD represents efforts to develop knowledge and skills, actions and

standards, motivation, incentives, attitudes and work environment of human factor in an

organization.

Definitions of HRD:

Organized learning activities arranged within an organization in order to improve

performance and/or personal growth for the purpose of improving the job, the individual,

and/or the organization.

HRD includes the areas of training and development, career development, and

organization development.

This is related to Human Resource Management -- a field which includes HR research

and information systems, union/labor relations, employee assistance,

compensation/benefits, selection and staffing, performance management systems, HR

planning, and organization/job design. (Robert H. Rouda & Mitchell E. Kusy, Jr.)

The previous definition ofHuman Resource Development (HRD) is Human Resource

Development is helping employees develop their skills, knowledge, and abilities. It does

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include providing opportunities for training, career development, and improvement of

standard of living and so on.

The human resource development field has long been struggling to develop an identity as

a profession, especially in terms of its applied and interdisciplinary nature. One of the

more debated issues in the field has been the need for a unifying definition that would not

only provide a focus for the development of the profession but would also set limits on

the boundaries of the field. This article presents a justification for a unifying definition, a

history of the existing definitions of HRD, and several common themes or patterns found

in these definitions and other literature in the field. The author proposes a unifying

definition that would provide a vision for the profession and identifies several next steps

that the field should consider in its quest for professional recognition and growth.

The present definition of Human Resource Development (HRD) is systematic

understanding of the physical and mental conditions of employee(s), including their

potentials. It includes helping them develop their skills, knowledge, and abilities by

bringing about better relations with them and by enabling them to take advantage of

suitable opportunities for training, career development, improvement of standard of living

and so on, in consonance with the organizational objectives.

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RESEARCH METHODOLOGY

RESEARCH DESIGN : Descriptive.

DATA SOURCES : Primary and Secondary.

PRIMARY DATA : Primary data is collected from respondents

through structured questionnaire.

SECONDARY DATA : Secondary data is collected from the

published data of the company

brochures and (www.licindia.com,

www.iciciprulife.com).

RESEARCH INSTRUMENT : A well-structured questionnaire.

POPULATION SIZE : 125

SAMPLE SIZE : 100

SAMPLING PROCEDURE : Convenience Sampling.

STATISTICAL TOOL : Chi-square test, Factor analysis.

SAMPLING UNIT : Executives & non-executives.

Data Sources:

Data is collected from primary and secondary sources.

Collection of the data is of primary importance in the research process. Data which is

collected for the purpose of research helps in proper analysis which is helpful to conduct

research effectively. The data source, which is very important in the collection of data, is

primary data and secondary data. Both primary and secondary data are taken into

consideration for the study of Human Resource Department in Life Insurance Sector.

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http://www.licindia.com/http://www.iciciprulife.com/http://www.licindia.com/http://www.iciciprulife.com/


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Primary Data:

Primary data is collected through administering the questionnaire by direct contact and

also involved in personal discussions to obtain insights of the information.

Secondary Data:

The Secondary data is collected from records, manuals and brochures maintained by the

personnel department.

Research Approach:

Survey Approach:

The questionnaire was administered through contacts with respondents.

Questionnaire:

A structured questionnaire is designed which consists of open ended and closed ended

questions with 5-point scale and the respondents were made personally to get their

responses. The 5-point scale is named as strongly agree, undecided, disagree and strongly

disagree.

Sampling Plan:

Sample size : 100

Sampling procedure : Convenience Sampling.

Statistical tool : Chi square test, Factor analysis.

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To achieve the objective of research, a planned and strategic descriptive

investigation is carried out. Descriptive study is helpful to know the proportion of

People in a given population who have behaved in particular manner making projection

of a certain thing or determining the relationship between two or more variables.

Descriptive study tends to be rigid and its approach cannot be changed every now and

then. Care should be taken only in the initial stages of planning and research, otherwise

data collected will be inadequate and the procedure used will be cumbersome and

expensive. Descriptive method is adopted to study the Human Resource Department in

Life Insurance Sector.

ChiSquare Test:

Some times researcher would normally come across situation or problems, which

are complex, involving two or more variables, in which, case analysis based on only one

variable will not be relevant. The bivariate analysis would be more appropriate than

univariate analysis.

In examining the relationship between two or more variables, the first step is to

step up a frequency table, which in such cases is called a contingency table. Each cell of a

contingency table shows a certain relationship or interaction between the two variables.

We use the chi-square test as a test of goodness of fit, where the population and sample

were classified on the basis of a single attribute. It may be noted that the chi- square test

need not be confined to a multinomial population but can be applied to other continuous

distributions such as the normal distribution. Here, we will be concerned with the use of

chi-square as a test of independence. With the help of this technique, we can test whether

or not two or more attributes are associated.

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OBJECTIVES OF THE STUDY

To study the Human Resource Department in Life Insurance Sector.

To assess the factors which determine the Human Resource Department in Life

Insurance Sector.

To study the different training procedures in Life Insurance Sector.

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CHAPTER-2

REVIEW OF LITERATURE

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HUMAN RESOURCE MANAGEMENT

MANAGEMENT DEFINITION:

Management is the art of getting things done

through and with the people in formally organized group. Management is the process

of designing and maintaining an environment in which individuals working together

in groups efficiently accomplished selected aims.

HRM DEFINITION:

Human Resource Management (HRM) is the function within an

organization that focuses on recruitment, management and providing direction for the

people who work in the organization. Human Resource Management can also be

performed by line managers. Human Resource Management is the organizational

function that deals with issues related to people such as compensation, hiring,

performance management, organization development, safety, wellness, benefits,

employee motivation, communication, administration, and training. It refers to the system

approach to the problem in any organization.

MEANING OF HRM:

Different terms are used to denote Human Resource

Management. They are labor management, labor administration, labor - management

relations, employee employer relations, industrial relations, personnel relations,

personnel management. Though these terms can be differentiated widely the basic

distinction lies in the scope or coverage and evolutionary stage. In simple sense, HRM

means employing people, developing their resources, utilizing, maintaining and

compensating their services with the job and organizational requirements.

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Personnel management is a responsibility of all those who manage

people as well as being a description of the work who are employed as specialists. It is

that part of management which in concerned with people at work and their relationships

with in an enterprise it applies not only to industry and commerce but to all fields of

employment.

FUNCTIONS OF HRM:

The functions of HRM can be easily classified into two

categories.

(I) Managerial functions

a) Planning.

b) Organizing.

c) Directing.

d) Controlling.

(ii) Operative functions

a) Employment

1. Job Analysis.

2. Human Resource Planning.

3. Recruitment.

4. Selection.

5. Placement.

6. Induction or Orientation.

b) Human Resource Development

1. Performance Appraisal.

2. Training.

3. Management Development.

4. Career Planning and Development.

5. Inter Mobility.

6. Transfer.

7. Promotion.

8. Demotion.

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9. Organization Development.

c) Compensation

d) Human relation

e) Human Resource Accounting

f) Human Resource Audit

g) Human Resource Research

NATURE OF HUMAN RESOURCE MANAGEMENT:

The nature of HRM can be studied in the following way.

Complex Dynamism

Social System

Challenging Task

SCOPE OF HUMAN RESOURCE MANAGEMENT:

Human Resource Management facilitates in identifying the right king of people,

socializing them in most appropriate way. Training and developing them in the right

direction, assigning the tasks which are best suited for every individual so as to bring out

their best. Motivating them to make their contribution and creating conditions for the

people to enjoy their work.

Human Resource Management approach improves the organization efficiency

work culture, job satisfaction of people, better understanding and human relations in

cardinal industrial relations and better productivity. HRM has great scope to improve

organization climate and efficiency.

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT:

Globalization of business is an important aspect of change which takes place in

the business environment of today, necessitating a human resource approach to man

power. Dynamic growth oriented organizations do require effective management of

people in a fast changing environment. The human resource management approach which

has been gaining the attention of management professionals during the last decade has

become the need of the development process of modern economics.

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CHARACTERISTICS OF HRM:

I) Management of Human Resource Arranging the people and managing them

at work so that they give their best to the organization.

II) Interpersonal Relationship HRM defines the relationship between employer

and employee and also between employee and employee.

III) HRM is specialized branch of General Management.

IV) HRM posses definite principles and policies which help over all development

of human force.

ASSUMPTIONS OF HRM:

There is a scope for unlimited developments of these resources.

The members of an organization are reservoirs of untapped resources.

It is more in the nature of self development than development thrust from

outside.

The organization also further develops a culture in which utmost emphasis

is placed on harmonious superior subordinate relations, team work.

Top management takes the initiative for HRM, formulates necessary plans

and strategies and creates an over all climate and support for its

implementation

PRINCIPLES OF HRM:

The labor management institute of England has given nine principles. They are as

follows:

Principle of maximum individual development.

Principle of scientific selection.

Principle of high morale.

Principle of effective communication.

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Principle of dignity of labor.

Principle of team spirit.

Principle of fair reward.

Principle of joint management. Principle of contribution of national property.

COMPONENTS OF HRM:

Human Resource Organization.

Human Resource System.

Human Resource Development.

Human Resource Relationships. Human Resource Utilization.

LIMITATIONS OF HRM:

HRM is of recent origin and it takes a universally approved academic

base. As there is no general definition accepted and an operational frame work is

universally approved, a skeptical approach.

HRM may not produce expected result over night. Gradual effect may be

expected and the management must have patience to wait and watch.

Most of the HRD programmers are limited to classroom training in many

organizations. Many managers neglect to collect and store the required

information with out which HRM practice is difficult.

In many organizations HRM is understood as Human Resource

Development. Human Resource Development is only part of Human Resource

Management.

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HRD PROCESS IN LIFE INSURANCE SECTOR

HRD PROCESS:

Human Resource Development has got four crucial ingredients to betaken into consideration.

They are as given below:

Individual (person).

Role.

Teams.

Organization.

These are four important ingredients at the primary level of the organization.

Individual:

Individuals are responsible for running the front & back operations of

the organization.

Main Individuals who come under the life insurance sector are:

1. Agents ofLIC & Development Officers.

2. Insurance Consultants & Unit Managers.

3. Insurance Consultants & Agency Managers.

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These are the main persons responsible for running the front end (Marketing

Operations) of the organization.

Role:

Role of the person is very imp in an organization.

Role states that each person has to play a very imp role in the organization

related to a particular process within that organization.

Each person is given his/her respective role in the organization.

Ex: Role play is imp in Sales & Marketing & also Leadership process related to the

organization.

Teams:

Teams are yet another crucial aspect related to the organization.

In a Life Insurance Sector there are:

1. Training Team.

2. Recruitment Team.

3. Coordination Team.

4. Management Team.

These teams are essential to run the organization in a smooth manner.

Organization:

Organization is the founding pillar of that field or industry.

In its inception the category classified for an organization is:

(a) Profit motive organization.

(b) Service motive organization.

Organization has to serve on the Professional Methodology.

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Individual Efficiency:

Under Life Insurance the individual has the capacity of becoming whatever

he/she wants.

Primary Process: Under primary process the person remains Agent Agent.

Secondary Process: Under secondary process persons starts from Agent

CLIA at Marketing & Sales Side.

Corporation Side: Corporation side the person has got chance from BM to

Zonal Manager.

Individual Effectiveness:

Under Life Insurance Sector it is to do with the objectives of the

organization & what should be the objectives of the Individual.

Individual has to perform the given tasks which are to be stated under the

duties of the organization.

Under Marketing: Entire Sales Objectives.

Under Organization: Entire Administrative objective related to org & also

sales etc.

This would prove the effectiveness of a person handling the objective.

Individual Style:

In a Life Insurance Sector all the life insurance organizations work on the

style of Convergent.

The meaning of Convergent is Thinking & Doing.

It is not only important to the insurance consultant who sells the policy but

also for the organization to expand its operations in the long run.

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Convergent has got 2 aspects 1. Related to the Investor 2. Related to the

organization.

Individual Leadership:

In Life Insurance Sector Leadership is present at every level of the organization.

In every setup level of life insurance co there are:

1. Corporate Office Chairman.

2. Zonal Office Zonal manager.

3. Divisional Office Sr. Divisional manager.

4. Branch Office Branch Manger or Chief Manager.

5. In addition to this Satellite branch manger for satellite branches.

Role Competencies:

Role becomes much more important when you take into consideration

Competencies.

UnderLife Insurance Sector there are two classifications of competencies:

1. Organizations competency.

2. Individuals competency.

Competency is very vital for the long run of the organization & its individual.Internally it is the strength of the organization & externally it is a threat to its

competitors.

Role Motivation:

Under Life Insurance Sector the main motivator towards the marketing &

sales side is the most Premier Insurance Consultant.

At an organization side they are Chief Manger, Sr. Divisional Manager,

Zonal Manager & the Chairman.

From time to time they are external faculties which come into consideration.

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They are on the expense of the organization & that these faculties would

perform the said act.

Role Frustration:

In Life Insurance Sector at an organization the biggest threat is Sales &

after Sales Service.

An Insurance Consultant happens to sell the policy but could not provide after

sales service related to the Policy Servicing.

Very few people happen to understand this and take the profession seriously.

After which they are kicked out of the organization in the organizationsmanner.

Role Success:

Success in Life Insurance Sector is at every level.

They are based on 2 categories:

1. Marketing & Sales (Insurance Consultants).

2. Administrative Board (DO to Chairman).

At an administrative side the success rate is very high.

After which people are directly recruited at a very high positions.

Teams Life Insurance:

Teams in LIC have got their special presence at every level.

They can be named as:

1. Training Team.

2. Recruitment Team.

3. Management Team.

Management Teams are present on every level of organization.

To give the green signal on the strategies they have the board along with the chairman

to decide.

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Organization Life Insurance:

Organization has got the ability to go not in the performing times but also in

the testing times.

Communication is the key for the growth of any organization.

The life insurance organization has to be a learning organization.

It also needs to change from the changing times in the prescribed sector.

Its development is the development of the organization.

TRAINING PROCEDURE IN LIFE INSURANCE SECTOR:

Training:

Training is a process where in the efficiency of the employee or an agent is enhanced.

It is a learning process that involves the acquisition of knowledge, sharpening of

skills, concepts, rules, or changing of attitudes and behaviors to enhance the

performance of employees.

Need of Training:

It is generally classified into three levels.

1. Organizational Level.

2. Individual Need.

3. Operational Level.

The resources which are required for running the organization are understood by

Need of Training.

Organizational Level:

1. Internal Environment: The factors for internal environment are:

(a) Organizational Procedure.

(b) Structure.

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(c) Weaknesses.

2. External Factors:

(a) Opportunities.

(b) Threats.

Individual Level:

This is done when the organization comes to a conclusion that there is a

difference between the expected performance & actual performance.

This performance for every individual which is within the organization.

The employer checks whether the respected employee is performing at a

desired level.

Operational Level:

The job which is being assigned to the designated individual of the

organization.

Job Analyst: He/She is the person who takes the responsibility of making

everyone understand the job or their work within the organization.

He is also responsible not only for assigning the present tasks but also the

future tasks related to the organization in any field.

Objectives of Training:

These objectives can be understood as:

1. Trainer.

2. Trainee.

3. Designer.

4. Evaluator.

Trainer:

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He/She is the primary person in the objectives as they would be the first person to

confront the objectives & the trainees of the respective organization.

Trainee:

He is the person who gets trained to understand his/her work; secondly it helps the

trainee to understand the training module or methodology.

Designer:

When the designer is convinced with the training module then he/she will buy the

training module for training & development of the organization.

Evaluator:

It is for measuring the importance of the trainee & its understanding with the module

for better performance.

Importance of Training:

The fifteen important aspects of training are:

1. Optimum Utilization of Human Resources.

2. Development of Human Resources.

3. Development of skill of employees.

4. Productivity.

5. Team Spirit.

6. Organization Culture.

7. Organization Climate.

8. Quality.

9. Healthy Work environment.

10. Health & Safety.

11. Morale.

12. Image.

13. Profitability.

14. Organizational Development.

15. Aids Leadership, Motivation, Loyalty etc.

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Training Procedure: Training procedure in life insurance companies are 2 fold:

1. Recruitment Training.

2. Training within the organization.

These trainings are very important for an employee or the insurance consultant

working for a life insurance company in India.

Training Procedure under Recruitment Training:

Under this there are two scenarios of taking up the training.

Scenario 1: Under this scenario the person who wanted to be an insurance consultant

working for life insurance corporation (Prior to IRDA Act 2000).

Scenario 2: Under this scenario the person has to under go the IRDA training &

become an agent with the life insurance corporation or any other co operating in

India.

Training before IRDA:

Before IRDA: Before IRDA the person who terms himself as had only had to be an

Agent of LIC.

Training procedure: Training procedure would be once when the agent would get

himself/herself recruited by the development officer.

This would only be after the payment of Rs. 15 and a DD favoring Life Insurance

Corporation of India.

Training after IRDA Act:

The IRDA act came into existence in the year 2000 on 6th January. It makes

compulsory that every person desiring to become an AGENT or

INSURANCE CONSULTANT of LIC or any other co. has to comply

with the said act.

There is a procedure for taking up the IRDA training in life insurance subject.

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Training Procedure as per the IRDA Act:

Training methodology as per IRDA is as follows:

1. The person has to declare that he wants to become an Insurance Consultant in

any one of the 14 companies of IRDA.

2. The person has to be recruited by a Development Officer/Unit

Manager/Agency Manager.

3. He/she has to give minimum Rs. 150 to 200 as the training charges in any of

the centers specified.

4. The person has to attend the 100 hours training (Prior 2007) & get an in-depth

knowledge of the subject of life insurance.

5. The person has to also take up the mock exams conducted by various centers

all over India.

6. The person has to then at last take the IRDA exam subject to condition

minimum 75 % training attendance.

7. The person has to then report back to DO/UM or AM.

Recruitment Procedure of an Insurance Consultant:

1. IRDA exam: After the IRDA exam the Insurance Consultant working for an

organization would get a license & would have to report to a particular

branch.

2. Then the Insurance Consultant would have to sell the respective plans & also

the group insurance schemes as per a life insurance co working in Indian

union.

Training Within the Organization:

Training within the organization is under taken by the development officer.

In private companies there are Unit Managers & Agency Managers.

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The branch manager or the chief manager would give the further training on

the subject related to life insurance & its products & various updates on the

organization etc.

Product Training:

The product training is taken on a very exhaustive base.

They are generally 3 categories:

(a) Conventional products of the insurance co.

(b) Non Conventional products of the insurance co.

(c) Group Insurance by the insurance co.

Insurance Consultancy:

Insurance consultant underLife Insurance Corporation banner has the growth of

becoming:

1. Insurance Consultant.

2. All India High Net worth Agent.

3. Wealth Manager.

4. CLIA (Chief Life Insurance Advisor).

Insurance Consultant:

A person remains an Insurance Consultant at an entry level.

He/She has to sell the policies related to life insurance co.

He/She if in LIC of India gets commission scales ranging from 2 to 35 %.

He/She if in the private insurance co also is entitled for a commission as well

as a handsome salary.

All India High Net Worth Agent LIC of India:

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AIHNWA is an Agent who is serving the HIGH NETWORTH

INDIVIDUAL.

HNWI: HNWI is an individual who earns more than 60,000 per month by any

profession he/she is skilled in.

The insurance consultant has to attend the training session of AIHNWA at

ZTC Gurgeon.

Then he is not only qualified but also certified as AIHNWA.

Wealth Manager LIC of India:

Wealth manager is a person who is selected by corporate office; again the

person has to be an insurance consultant working forLIC.

This training is again attended at ZTC (Gurgeon).

Again the person is certified under the norms of the organization.

Chief Life Insurance Advisor LIC of India:

CLIA is currently the highest position in terms of marketing & Sales related to

life insurance consultant.

The CLIA has to recruit agents under him & do the respective marketing &

sales related to life insurance policies ofLife Insurance Corporation.

Commission Scale:

The commission scales are different under different plans of life insurance.

Whole Life Plans: If PPT is more than 15 years then it is 25 % the applicable

bonus is paid to the insurance consultant @ 40 %.

Money Back Plans: The first year commission is 15 % & bonus commission is

40 %.

Term Assurance Policies: Less than 15 years then the first year are 7.5 % &

No bonus to these plans.

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Ulip Plans: Under ULIP plans ofLIC the rate is 10 % & 7.5 %, in the same

LIC policy under ULIP for single premium it is 2 %.

Annuity Plans: Under annuity plans of LIC there are 2 % for immediate

annuity. For deferred annuity it is 7.5 % & in both cases no bonus for

insurance consultant.

Other Benefits of Agent:

Fringe Benefits: In order to qualify for the fringe benefits there are 2

conditions:

Condition no 1:

45 lives of S.A 15 lakhs to become a BM club manager.

90 lives of S.A 40 lakhs to become a DM club member.

115 lives of S.A 60 lakhs to become a ZM club member.

170 lives of S.A 1 Crore to become a Chairman club member.

In the entire year for BM 523, DM 275, ZM 170 & Chairman its 242 in

a financial year.

Condition no 2:

BM club: 5 lakhs S.A & 120 lives in a financial year with FYC 20,000 on

every live & 30,000 on the RC base.

DM club: 10 lakhs S.A & 230 lives in a financial year with FYC 35,000 on

every live & 55,000 on the RC base.

ZM club: 15 lakhs S.A & 370 lives in a financial year with the FYC 70,000 on

every live & 80,000 RC base.

Chairmans club: 25 lakhs S.A & 550 lives in a financial year with the FYC 1,

10,000 on every live & 1, 00,000 RC base.

Fringe Benefits:

Fringe benefits are the benefits divided as:

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Office Allowance: BM 1,000 P.A , DM 8,500 P.A, ZM 17,000 P.A,

Chairman 30,000 P.A

Call Charges: BM N/A, DM N/A, ZM 300 local calls & Chairman 300

local calls + rentals charges.

Sales & Promotional Gifts: BM 180, DM 500, ZM 840 & Chairmans

Club 1400.

Letter Heads & Envelops: BM 300, DM 500, ZM 750 & Chairmans

Club 1000.

Visiting Cards: BM 100, DM 150, ZM 200 & Chairmans Club 250.

Out of Pocket Expenses: BM 200, DM 400, ZM 1100, CC 2500.

Vehicle Advances: 2 wheeler (Purchase price, deduction 60 monthly

installments).

Purchase price or 7.5 % of 2 years RC or Rs. 3, 50,000 (8 years).

Purchase price or 2 years.

Housing Loan: 5 % P.A or 7.5 % P.A for a MRP loan of Rs. 10, 00,000 by

LIC of India under the portfolio of LIC HFL.

ZM 8, 00,000 & for CC 8, 50,000.

Group Term Insurance: BM 18750 P.A (Up to 60 years of Age), DM

37,500 P.A, ZM 75,000 & CC 1, 25,000 P.A (S.A).

Housing Finance Agents:

Sale deep for 15 years.

Certificate from branch/divisional authorities for 15 years.

Municipality permission.

Municipality plan approval.

Estimates from civil engineers.

Income certificates.

Based upon the above conditions the housing loan is released from the LIC HFL.

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Process Training:

Process Training is related to the organization, its setup.

It covers the history of the organization, its various aspects which are relatedto marketing, sales & after sales services.

Finance & Human resources aspects also.

Along with that it would also cover various aspects related to underwriting

etc.

For a individual which is 24 years old a policy would be issued if that

individual would get 1 passport size photograph, 1 address proof & 1 Date of

Birth along with the premium amount.

For a 32 year old individual the underwriting procedure would be 1 passport

size photograph, 1 address proof, 1 date of birth certificate & a general

examination by the authorized physician under the governance of LIC.

If the investor is an NRI person then he/she should do from a foreign

physician who should be minimum MBBS.

After this examination & payment of premium the policy bond would be

issued.

Product Training:

When it comes to Life Insurance sector, life insurance sector in any insurance

organization has got 3 product trainings.

(a) Conventional plans of the co.

(b) Non Conventional plans of the co.

(c) Group Insurance schemes of the co.

Conventional Plan Category:

1. Whole Life Plans.

2. Ltd. Payment Endowment Plans.

3. Children Plans.

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4. Special Plans.

5. Pension Plans.

Non Conventional Plans Category:

1. Bima + plan.

2. Jeevan + plan.

3. Money + plan.

4. Market + plan.

5. Health + plan.

6. Money + I plan.

7. Market + I plan.

Group Insurance Schemes:

1. Group Insurance.

2. Group Gratuity Scheme.

3. Group Super Annuation Scheme.

4. Group Leave Encashment Scheme.

5. Group Savings Linked Insurance Scheme.

6. Janashri Bima Yojana (JBY).

7. GMRA (Group Mortgage Redemption on Assurance).

Insurance Broking:

When an insurance consultant is given training related to the process & also related to

the product he/she also gets to know about Insurance Broking.

Insurance Broking: Apart from the regular life insurance cos doing the business of

life insurance, it is to be noted that even banks are selling life insurance.

At the time of opening a bank account, the person in that bank needs Rs. 1,000 to

open the account.

After which over a period of time the respective bank would approach the account

holder for insuring him/her through the bank account.

Premiums are paid by the bank account directly & every month it is deducted.

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Portfolio Advisory:

In an Insurance co the use of portfolio advisory is taken into consideration.

As it is used widely in 3 portfolios:

1. Life Insurance Portfolio.

2. Mutual Funds Portfolio.

3. Health Insurance Portfolio.

Soft Skills Development:

Soft Skills Development is initiated by an organization which is external to the

insurance organization.

There are many organizations which are into soft skills so an insurance consultant has

to go in for some courses.

Irrespective of the private insurance company which gives a bit of soft skills into

insurance, the insurance consultants have to go & get trained externally.

RECRUITMENT AND PLANNING IN LIC:

Recruitment is a process where a qualified person, with a specialized skill set

is taken on board by the co.

Planning has got to do with the process & the people who have the ability to

take care of these processes.

These two are the main functions of Human Resource Department.

Organization Setup:

Organization Setup in Life Insurance Corporation under Life Insurance portfolio

has got:

1. 1 Corporate Office.

2. 8 Zonal Offices.

3. 105 Divisional Offices.

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4. 2048 Branches.

In addition to the above information LIC has got 500 + Satellite Offices or Satellite

Branches.

Corporate Office Setup and Recruited People:

In corporate office there are different recruitments in various departments of the

organization.

They are as given below:

Actuarial Board: It is the Actuarial or the Actuarial Head

This department is into:

(a) Actuarial Research

(b) Product Design

(c) Valuation.

Audit: The second most department is the Audit which is taken care by the internal

auditor.

Board Secretariat: Board Secretariat is into 2 planning:

(a) Public Relations.

(b) Government References.

Corporate Communication: This department is into 2 functions:

(a) Corporate Communications.

(b) Publicity.

Corporate Planning: Corporate Planning department is into 3 functions:

(a) Corporate Planning.

(b) Plan Finalization.

(c) Operational Research.

CRM: This dept at the corporate office has got 3 functions to perform:

(a) Queries from Customers.

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(b) Complaints Tracking.

(c) Customer Service.

Finance & Accounts: F/A has got 5 functions within the organization:

(a) Corporate Accounts.

(b) Financial Budget.

(c) Finance.

(d) Provident Fund & Pension.

(e) Income Tax.

HRD/OD: HRD & Organizational Department is under the supervision of Chairman

& the 3 MDS.

Inspection Dept: The inspection dept has got 3 functions:

(a) Over viewing inspection operations.

(b) Inspection of Zonal Offices.

(c) All other related inspection corporate level jobs.

Investment Department: They are into:

(a) Investments related to funds.

(b) Investments related to Loans & Mortgage.

Management Development Centre: MDC has got 2 functions:

(a) Management Development Centre.

(b) Managerial/Executive Learning Programmes.

Marketing: Marketing Department has to take care of 3 functions:

(a) Planning & Review.

(b) Sales Promotion.

(c) ULIPS.

Health Insurance: The corporate office has Health Insurance portfolio also.

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Underwriting & Re-Insurance: Corporate office has also got to take care of

underwriting decisions as well as Re-Insurance

They are more than 14 departments at the corporate office.

Zonal Office Setup and Recruited People:

Zonal Office: The various departments under Zonal Office are:

Actuarial Board: It is the Actuarial or the Actuarial Head

This department is into:

(a) Actuarial Research

(b) Product Design

(c) Valuation.

Audit: The second most department is the Audit which is taken care by the internal

auditor.

Board Secretariat: Board Secretariat is into 2 planning:

(a) Public Relations.

(b) Government References.

Corporate Communication: This department is into 2 functions:

(a) Corporate Communications.

(b) Publicity.

CRM: This department at the zonal office has got 3 functions to perform:

(a) Queries from Customers.

(b) Complaints Tracking.

(c) Customer Service.

F/A: F/A has got 3 functions:

(a) Zonal Office Accounts.

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(b) Consolidation of Accounts.

(c) Provident fund & pension.

STC: Sales Training Centre & Training to Field professionals.

ZTC: Zonal Training Centre & Training to Field Personnel.

Health Insurance: It has got Health Insurance Portfolio.

Zonal office has got more than 9 departments.

Divisional Office Setup and Recruited People:

Divisional Office: Various departments in divisional office are:

Claims Department: They are:

(a) Death Claims processing.

(b) Consolidation of data from Branches.

CRM: They are:

(a) Customer Relations.

(b) Complaint Tracking.

F/A: F/A it has got 3 functions:

(a) Divisional office accounts.

(b) Consolidated accounts.

(c) Surplus fund transferred.

Marketing: Marketing has got 3 functions:

All jobs related to marketing.

(b) Publicity.

(c) Matters dealing with Agents/DOS.

NB: New Business Department is also having 3 functions:

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35/80

(a) Underwriting.

(b) Actuarial Studies.

(c) Valuation.

P& MR: P & MR have 2 functions:

(a) Marketing Research.

(b) Planning.

Branch Office Setup and Recruited People:

Branch Office: At the Branch Office level you have got:

Claims: Claims have got 2 functions:

(a) SBC

(b) DBC

(c) MBC

F/A: The F/A has got 4 functions to perform:

(a) Cash Receipts/Payments.

(b) Banking.

(c) General Accounts.

(d) Preparation of Trail Balance.

IT Dept: IT department has got 2 functions:

(a) Computer operations.

(b) Computer operations applications.

NB: NB has got 3 functions:

(a) Underwriting.

(b) Policy Issue.

(c) Valuation.

OM: Office Management has got 4 functions:

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(a) Office upkeep.

(b) Furniture & Stationery.

(c) Salary & Leave Records.

(d) Employee Records & Employee Matters.

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CHAPTER-3

COMPANY PROFILE

LIFE INSURANCE CORPORATION

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against loss and

disaster existed in primitive men also. They too sought to avert the evil consequences of

fire and flood and loss of life and were willing to make some sort of sacrifice in order to

achieve security. Though the concept of insurance is largely a development of the recent

past, particularly after the industrial era past few centuries yet its beginnings date

back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

37


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insurance company on Indian Soil. All the insurance companies established during that

period were brought up with the purpose of looking after the needs of European

community and Indian natives were not being insured by these companies. However,

later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance

companies started insuring Indian lives. But Indian lives were being treated as sub-

standard lives and heavy extra premiums were being charged on them. Bombay Mutual

Life Assurance Society heralded the birth of first Indian life insurance company in the

year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with

highly patriotic motives, insurance companies came into existence to carry the message

of insurance and social security through insurance to various sectors of society. Bharat

Insurance Company (1896) was also one of such companies inspired by nationalism. The

Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United

India in Madras, National Indian and National Insurance in Calcutta and the Co-operative

Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative

Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great

poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and

Swadeshi Life (later Bombay Life) were some of the companies established during the

same period. Prior to 1912 India had no legislation to regulate insurance business. In the

year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed.

The Life Insurance Companies Act, 1912 made it necessary that the premium rate

tables and periodical valuations of companies should be certified by an actuary. But the

Act discriminated between foreign and Indian companies on many accounts, putting the

Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business.

From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176

companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming

of insurance companies many financially unsound concerns were also floated which

failed miserably. The Insurance Act 1938 was the first legislation governing not only life

insurance but also non-life insurance to provide strict state control over insurance

business. The demand for nationalization of life insurance industry was made repeatedly

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in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance

Act 1938 was introduced in the Legislative Assembly. However, it was much later on the

19th of January, 1956, that life insurance in India was nationalized. About 154 Indian

insurance companies, 16 non-Indian companies and 75 provident were operating in India

at the time of nationalization. Nationalization was accomplished in two stages; initially

the management of the companies was taken over by means of an Ordinance, and later,

the ownership too by means of a comprehensive bill. The Parliament of India passed the

Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance

Corporation of India was created on 1st September, 1956, with the objective of spreading

life insurance much more widely and in particular to the rural areas with a view to reach

all insurable persons in the country, providing them adequate financial cover at a

reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its

corporate office in the year 1956. Since life insurance contracts are long term contracts

and during the currency of the policy it requires a variety of services need was felt in the

later years to expand the operations and place a branch office at each district headquarter.

re-organization of LIC took place and large numbers of new branch offices were opened.

As a result of re-organization servicing functions were transferred to the branches, and

branches were made accounting units. It worked wonders with the performance of the

corporation. It may be seen that from about 200.00 crores of New Business in 1957 the

corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years

for LIC to cross 2000.00 crore mark of new business. But with re-organization happening

in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on

new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,

7 zonal offices and the corporate office. LICs Wide Area Network covers 100 divisional

offices and connects all the branches through a Metro Area Network. LIC has tied up

with some Banks and Service providers to offer on-line premium collection facility in

selected cities. LICs ECS and ATM premium payment facility is an addition to customer

convenience. Apart from on-line Kiosks and IVRS, Info Centres have been

commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New

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Delhi, Pune and many other cities. With a vision of providing easy access to its

policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite

offices are smaller, leaner and closer to the customer. The digitalized records of the

satellite offices will facilitate anywhere servicing and many other conveniences in the

future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian

insurance and is moving fast on a new growth trajectory surpassing its own past records.

LIC has issued over one crore policies during the current year. It has crossed the

milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy

growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented

performance records in various aspects of life insurance business. The same motives

which inspired our forefathers to bring insurance into existence in this country inspire us

at LIC to take this message of protection to light the lamps of security in as many homes

as possible and to help the people in providing security to their families.

Mission

"Explore and enhance the quality of life of people through financial security by providing

products and services of aspired attributes with competitive returns, and by rendering

resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies and

Pride of India."

Some of the important milestones in the life insurance business in India are:

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1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company

started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,

1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd. GIC incorporated as a company.

Objectives of LIC:

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1. Spread Life Insurance widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching all insurable

persons in the country and providing them adequate financial cover against death

at a reasonable cost.

2. Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.

3. Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the interest

of the community as a whole; the funds to be deployed to the best advantage of

the investors as well as the community as a whole, keeping in view national

priorities and obligations of attractive return.

4. Conduct business with utmost economy and with the full realization that the

moneys belong to the policyholders.

5. Act as trustees of the insured public in their individual and collective capacities.

6. Meet the various life insurance needs of the community that would arise in the

changing social and economic environment.

7. Involve all people working in the Corporation to the best of their capability in

furthering the interests of the insured public by providing efficient service with

courtesy.

8. Promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with

dedication towards achievement of Corporate Objective.

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CHAPTER-4

43


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DATA ANALYSIS &

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION OF LIC

1. At work, I am always identified by the tasks I perform.

S.No. Options No. of Respondents

1. Strongly agree 30

2. Agree 53

3. Undecided 6

4. Disagree 8

5. Strongly disagree 3

TASK IDENTITY

44

No of Respondents

30%

53%

6%8% 3% 1

2

3

4

5


45/80

Inference:

From the table it is referred that 83% of the respondents opine that there is task

identity in the organization and 60% are undecided and 11% disagree with it.

2. I am always informed of expectations and my current performance.

S.No Options No of Respondents


2. Agree 53

3. Undecided 8

4. Disagree 19


FEED BACK

45

No of Respondents

16%

53%

8%

19%4%

1

2

3

4

5


46/80

Inference:

From the above table it is inferred that 68% of the employees opine that there is

feedback and 8% are undecided and 23% disagree with it.

3. Goals are mutually set here.

TARGET SETTING & INVOLVEMENT



2. Agree 37

3. Undecided 21

4. Disagree 18


46

No of Respondents

19%

37%21%

18%5%

1

2

3

4

5


47/80

Inference:

From the above table it is inferred that 56% of the employees opine that there is target

setting % involvement and 21% are undecided and 23% disagree with it.

4. Rewards are commensurate with our appraisal ratings.


1. Strongly agree 8

2. Agree 37

3. Undecided 27

4. Disagree 28


PERFORMANCE APPRAISAL AND REWARDS

47

No of Respondents

8%

37%

27%

28%0% 1

2

3

4

5


48/80

Inference:

From the above table it is inferred that 45% of the employees opine that rewards are

commensurate with appraisal and 27% are undecided and 28% disagree with it.

5. The organization counsels its members on career options & guides

them too.


1. Strongly agree 9

2. Agree 47

3. Undecided 21

4. Disagree 23


CAREER PLANNING

48

No of Respondents

9%

47%21%

23% 0% 1

2

34

5


49/80

Inference:


career planning and 21% are undecided and 23% disagree with it.

6. Training is facilitative and helps me to perform better.

S.No Options No of Respondents1. Strongly agree 37

2. Agree 54

3. Undecided 4

4. Disagree 5


TRAINING AND DEVELOPMENT

49

No of Respondents

37%

54%

4% 5% 0% 1

2

3

4

5


50/80

Inference:

From the above table it is inferred that 91% of the employees opined that the training

helps them to perform better and 4% are undecided and 5% disagree with it.

7. I need not worry about my job as long as I meet the standards.

JOB SECURITY

Inference:



2. Agree 51

3. Undecided 7

4. Disagree 65. Strongly disagree 1

50

No of Respondents

35%

51%

7% 6% 1% 1

2

3

4

5


51/80

From the above table it is inferred that 86% of the employees opine that there is job

security and 7% are undecided and 7% disagree with it.

8. The conditions need to be far improved.

WORKING CONDITIONS

Inference:

From the above table it is inferred that 68% of the employees opine that working

conditions need to be improved and 18% are undecided and 31% disagree with it.



2. Agree 53

3. Undecided 18

4. Disagree 13


51

No of Respondents

16%

53%

18%

13% 0% 1

2

3

4

5


52/80

9. I have always been rewarded for the contribution I have made.

RECOGNITION

Inference:

From the above table it is inferred that 48% of the employees opine that recognition is

there for the contributions they have made and 19% are undecided and 23% disagree

with it.



2. Agree 33

3. Undecided 19

4. Disagree 16


52

No of Respondents

17%

36%21%

18%8% 1

2

3

4

5


53/80

10. I am satisfied with the leave facilities in the organization.

RESPONDENTS

Inference:

From the above table it is inferred that 66% of the employees opine are satisfied with

the leave facilities in the organization and 30% are disagree with it.



2. Agree 50

3. Undecided 4

4. Disagree 28


53

No of Respondents

16%

50%

4%

28%

2%1

2

3

4

5


54/80

11. The kind of work I do makes me responsible for my activities.


1. Strongly agree 352. Agree 56

3. Undecided 5

4. Disagree 3


RESPONSIBLE

Inference:

From the above table it is inferred that 91% of the employees opine that work they do

makes them responsible for their activities.

Test 1

54

No of Respondents

35%

56%

5% 3%1% 1

2

3

4

5


55/80

Null Hypothesis: Presence of hygiene factors doesnt prevent dissatisfaction.

Alternative Hypothesis: Presence of hygiene factors prevents dissatisfaction.

H

Y

G

I

E

N

E

F

A

C

T

O

R

S

HUMAN RESOURCE DEPARTMENT

TOTAL

Satisfied Dissatisfied

Present 76 12 88

Absent 5 7 12

TOTAL 81 19 100

O E (O-E) (O-E)2 (O-E)2/E

76 71 5 25 0.312 17 -5 25 1.5

5 10 -5 25 2.5

7 2 5 25 12.5

0 X2=16.8

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Degree of freedom= (2-1) (2-1) =1

Tabulation value of X2 for 1 degree of freedom=3.841

Conclusion:

Since the calculated value of chi square is greater than tabulated value of

chi square at 25% level of significance, null hypothesis is rejected. Hence we conclude

that presence of hygiene factors prevent dissatisfaction.

Test II

Null Hypothesis: Presence of motivational factors doesnt leads to job satisfaction.

Alternative Hypothesis: Presence of motivational factors leads to job satisfaction.

M

O

T

IV F

A A

T C

I T

O O

N R

A S

L


TOTAL


Present 67 8 75

Absent 14 11 25

TOTAL 81 19 100

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Conclusion:

Since the calculated value of chi square (13.5362) is greater than tabulated

value of chi square at 5% level of significance, null hypothesis is rejected. Hence we

conclude that presence of motivational factors leads to job satisfaction.

O E (O-E) (O-E)2 (O-E)2/E

67 60.75 6.25 39.06 0.6430

8 14.25 -6.25 39.06 2.7411

14 20.25 -6.25 39.06 1.9289

11 4.75 6.25 39.06 8.2232

0 X2=13.5362

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DATA ANALYSIS AND INTERPRETATION OF LIC

At work, I am always identified by the tasks I perform.

TASK IDENTITY

Inference:

From the table it is referred that 85% of the respondents opine that there is task

identity in the organization and 5% are undecided and 10% disagree with it.

I am always informed of expectations and my current performance.

S.No. Options No. of Respondents


2. Agree 58

3. Undecided 5

4. Disagree 7


58

No. of Respondents

27%

58%

5%7% 3%

1

2

3

4

5


59/80



2. Agree 523. Undecided 6

4. Disagree 20


FEED BACK

Inference:


feedback and 6% are undecided and 28% disagree with it.

Goals are mutually set here.

59

No. of Respondents

14%

52%

6%

20%

8%

1

2

3

4

5


60/80

TARGET SETTING & INVOLVEMENT

Inference:

From the above table it is inferred that 49% of the employees opine that there is target

setting & involvement and 22% are undecided and 29% disagree with it.

Rewards are commensurate with our appraisal ratings.





2. Agree 31

3. Undecided 224. Disagree 20


60

No. of Respondents

18%

31%22%

20%

9%

1

2

3

4

5


61/80

2. Agree 20

3. Undecided 10

4. Disagree 20


PERFORMANCE APPRAISAL AND REWARDS

Inference:

From the above table it is inferred that 65% of the employees opine that rewards are

commensurate with appraisal and 10% are undecided and 25% disagree with it.

The organization counsels its members on career options & guides them too.



2. Agree 30

3. Undecided 25

4. Disagree 25

61

No of Respondents

45%

20%

10%

20%5%

1

2

3

4

5


62/80


CAREER PLANNING

Inference:


career planning and 25% are undecided and 25% disagree with it.

Training is facilitative and helps me to perform better.


2. Agree 40

3. Undecided 10

4. Disagree 15


62

No of Respondents

20%

30%25%

25%0%

1

2

3

4

5


63/80

TRAINING AND DEVELOPMENT

Inference:

From the above table it is inferred that 75% of the employees opined that the training

helps them to perform better and 10% are undecided and 15% disagree with it.

I need not worry about my job as long as I meet the standards.

JOB SECURITY



2. Agree 50

3. Undecided 54. Disagree 8


63

No of Respondents

35%

40%

10%

15% 0% 1

2

3

4

5

No of Respondents

35%

50%

5%8% 2%

1

2

3

4

5


64/80

Inference:

From the above table it is inferred that 85% of the employees opine that there is job

security and 5% are undecided and 10% disagree with it.

The conditions need to be far improved.

WORKING CONDITIONS



2. Agree 40

3. Undecided 15

4. Disagree 20


64

No of Respondents

15%

40%15%

20%

10%1

2

3

4

5


65/80

Inference:

From the above table it is inferred that 55% of the employees opine that working

conditions need to be improved and 15% are undecided and 30% disagree with it.

I have always been rewarded for the contribution I have made.

RECOGNITION



2. Agree 38

3. Undecided 9

4. Disagree 23


65

No of Respondents

20%

38%9%

23%

10% 1

2

3

4

5


66/80

Inference:

From the above table it is inferred that 58% of the employees opine that recognition is

there for the contributions they have made and 9% are undecided and 33% disagree

with it.

I am satisfied with the leave facilities in the organization.



2. Agree 45

3. Undecided 11

4. Disagree 25


RESPONDENTS

66

No of Respondents

12%

45%11%

25%

7%1

2

3

4

5


67/80

Inference:

From the above table it is inferred that 57% of the employees opine are satisfied with

the leave facilities in the organization, 11 are undecided and 32% are disagree with it.

The kind of work I do makes me responsible for my activities.


2. Agree 47

3. Undecided 5

4. Disagree 9


RESPONSIBLE

67

No of Respondents

35%

47%

5%9% 4% 1

2

3

4

5


68/80

Inference:

From the above table it is inferred that 82% of the employees opine that work they do

makes them responsible for their activities.5% are undecided and 13% disagree with

it.

Test 1

Null Hypothesis: Presence of hygiene factors doesnt prevent dissatisfaction.

Alternative Hypothesis: Presence of hygiene factors prevents dissatisfaction.

68


69/80

H

Y

G

I

E

N

E

F

A

C

T

O

R

S


TOTAL


Present 75 15 90

Absent 5 5 10

TOTAL 80 20 100

69


70/80



Conclusion:

Since the calculated value of chi square is greater than tabulated value of

chi square at 25% level of significance, null hypothesis is rejected. Hence we conclude

that presence of hygiene factors prevent dissatisfaction.

Test II

Null Hypothesis: Presence of motivational factors doesnt leads to job satisfaction.

Alternative Hypothesis: Presence of motivational factors leads to job satisfaction.

M

O

T

I


TOTAL


O E (O-E) (O-E)2 (O-E)2/E

75 71 4 16 0.22

15 17 -2 4 0.235

5 10 -5 25 2.5

5 2 3 9 4.5

0 X2=7.455

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71/80

V F

A A

T C

I T

O O

Present 70 8 78

Absent 15 7 22

TOTAL 85 15 100

O E (O-E) (O-E)2 (O-E)2/E

70 60.75 9.25 85.5625 1.4084

8 14.25 -6.25 32.8125 2.302

15 20.25 -5.25 27.5625 1.3167 4.75 2.25 5.0625 1.065

0 X2=6.1364



Conclusion:

Since the calculated value of chi square (6.1364) is greater than tabulated

value of chi square at 5% level of significance, null hypothesis is rejected. Hence we

conclude that presence of motivational factors leads to job satisfaction.

71


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CHAPTER-5

CONCLUSION

72


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FINDINGS

69% of the employees in the company feel that feedback seems to be more

often in the company and 23% dont accept with this and 8% are undecided.

56% of the employees in the company feel that goals are mutually set in the

company, 23% disagree with it and 21% of the employees are undecided.

47% of the employees in the company fell that the equitable reward system is

effective in the organization and 31% disagree with it and 21% of the

employees are undecided.

56% of the employees in the company feel that they have guidance of counsel

members in the carrier paths, 23% disagree with this and 21% are undecided.

48% of the employees in the company are satisfied with succession planning

and 23% are dissatisfied and 19% are undecided.

69% of the employees in the company feel that the working conditions in the

organization need to be far improved and 18% disagree and 13% are

undecided.

48% of the employees in the company feel that there is recognition for their

work and 23% disagree with this and 19% are undecided.

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Majorities of the employees (91%) in the company feel that training programs

seems to be more effective in the organization to perform better.

Safety measures seem to be good in the organization as majorities of the

employees (87%) are satisfied with the measures taken by the company.

Majority of the employees (86%) feel that morale is increased by the job

security provided by the organization.

Commitment is observed to be more in the majority of the employees (91%)

as they are responsible for their activities.

It is observed and proved by chi square test that the presence of hygiene

factors in the organization prevents dissatisfaction among the employees and

the customers as well.

SUGGESTIONS

Participate in planning and mutual goal setting may be introduced to increase

feedback opportunities and freedom at work place.

Targets can be systematically set, measured objectively to reward high

performers.

Performance linked incentives would ensure greater satisfaction and equity

amongst employees and 360 appraisal is recommended to minimize the

dissatisfaction level.

Experience and merit should be recognized in the form of promotions, job

enrichment and job rotations.

Letters of appreciation, presence & mementos could be given at employee

congregation as a mark of recognition and appreciation.

Working conditions shall be improved by using dust filters, using of sound

mufflers, planting of trees etc.

Career counseling activities may be implemented with true sprit.

The company needs to implement sound succession planning system to

increase morale and satisfaction of employees.

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It is observed and proved by chi-square test the presence of motivation factors

in the organizations leads to greater satisfaction among employees as well as

customers.

It is found that HR initiative is the major factor that influences the satisfaction

of both the employees and the customer.

HRD is the department in any organization which recognizes the major facets

of the employees, the customers and on the whole the organization.

CONCLUSION

Life Insurance Sector witnessed a lot of change after the year 2000 as the IRDA

act came into existence.

Until 1999, the Life Insurance field was mainly operated by Life Insurance

Company of India and LIC was the sole Life Insurance seller.

Keeping in view prior 1999 LIC recruited mainly insurance agents and

Development Officers at a very large scale.

After 2000, the Insurance Sector witnessed more than 14 companies making its

way into insurance operations.

After 2000, there was a mass recruitment of people into insurance field.

Employment according to March 31st, 2005 census on pay roll basis in all the 14

companies reached to 2 lakh employees.

According to 2004, 31st March census the insurance consultancy reached 15.58

lakhs.

HRD process in insurance is more at the marketing side as insurance selling is

purely on marketing basis.

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Hence forth, the HRD processes in an insurance sector are mainly projects on

recruitment of more and more insurance consultants and officials at marketing

side.

CHAPTER-6

BIBLIOGRAPHY

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BIBLIOGRAPHY

1. C.R.KOTHARI, Research Methodology, Vishwa Prakasham, New Delhi, 2nd

edition.

2. S.P.GUPTA, Statistical Methods, Sultan Chand & sons.

3. DAVID A DECENZO, STEPHEN P.ROBBINS, Human Resource Management.

4. P.SUBBA RAP, Human Resource Management.

5. L.M.PRASAD, Human Resource Management.

6. FRED LUTHANS, Organization Behavior.

7. ROBERT H.RONDA, Human Resource Development.

Websites:

www.google.com

The information on HRD in Life Insurance Sector is

extracted.

www.licindia.com

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This is the official website from which the information on company

has been taken.

www.indianinsurancecouncil.com

The official website from which the insurance data is collected.

www.irdaindia.org

The official website from which the information on Insurance Regulatory

Development Authority has been collected.

QUESTIONNAIRE

Name of the employees :Age :

Qualification :

Department :

1. At work, I am always identified by the tasks I perform. ( )

a. Strongly agree b.Agree c.Undecided d.Disagree e.Strongly

disagree.

2. I am always informed of expectations and my current performance( )


disagree.

3. Goals are mutually set here. ( )


disagree.

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4. Rewards are commensurate with our appraisal ratings. ( )


disagree.

5. The organization counsels its members on career options & guides them too.

(

)


disagree.

6. Training is facilitative and helps me to perform better. ( )


disagree.

7. I need not worry about my job as long as I meet the standards. ( )


disagree.

8. The conditions need to be far improved. ( )


disagree.

9. I have always been rewarded for the contribution I have made. ( )


disagree.

10. I am satisfied with the leave facilities in the organization. ( )


disagree.

11. The kind of work I do makes me responsible for my activities. ( )


disagree.

12. Are you satisfied by the safety measures taken by the company? ( )


disagree.

13. Are you provided with any extra benefits apart from the basic pay? Yes/No. If

yes: ( )

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a. Bonus benefits b.Canteen benefits. C. Free medical facility d. All

the above.

14. I am given enough freedom to decide on issues under my preview. ( )


disagree.

15. I am satisfied with the relations in the company. ( )


disagree.

lic final project

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