project of bharti-axa life insurence co
TRANSCRIPT
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Sales Promotion,
Recruitment, Training & Development of Life
Advisors
Submitted in Partial Fulfillment of the Requirements for the
Award of Degree
OfMASTER OF BUSINESS ADMINISTRATIONU.P.TECHNICAL UNIVERSITY, LUCKNOW
ACADEMIC SESSION(2008-2010)
NARENDRA KUMAR
Roll No. : 0807470047
UNDER THE GUIDENCE OF:
Mr. PRASHANT SHARMA
DEWAN INSTITUTE OF MANGEMENT STUDIES
BY PASS ROAD, PARTAPUR, MEERUT
[250001]
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ACKNOWLEDGEMENT:
The project was a great source of learning and a good exposure as it givesan opportunity to co-relate the theoretical knowledge with practical
experience, though during ones ambitions one always encounters certain
difficulties. However overcoming these difficulties and making the
project a success greatly depends upon the encouragements, inspirations
and help rendered by the staff members of the organization.
I am very much grateful and feel indebted Mr. Ashish Kumar
Srivastava Agency Manager of (Bharti Axa Life Insurance Co. ,
Lucknow) for giving me this opportunity to work for his organizationunder whose guidance I am able to complete my project. His co-operation
has sustained me through the entire period of my project.
I would also express my gratitude toMr. J. C. Pant (Director) Of
Dewan Institute of Management Studies ,Meerut ,Mr. GauravKaushik ((Head of the Dept.M.B.A) ) & Mrs. Chitra teotia (InternalGuide) without their support my project would not have reached to this
end .
Place : Lucknow
Date :
NARENDRA KUMAR
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DECLARATION
I the undersigned, hereby declare that this project entitled SALES
PROMOTION RECRUITMENT, TRAINING AND
DEVELOPMENT of Life advisors at Bharti AXA, LUCKNOW is
written and submitted by me to DEWAN INSTITUTE OF
MANAGEMENT OF STUDIES, MEERUT in partial fulfillment of the
requirements for the award of MASTER OF BUSINESS
ADMINISTRATION under the guidance of my company guide Mr.
Ashish Kumar Srivastava. This report neither full nor in part has ever
been submitted for award of any other course of either this Institute or
any other Institute.
NARENDRA KUMAR
MBA
2008-2010
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EXECUTIVE SUMMARY
The project is about recruitment, training and development of Life
advisors. The project was undertaken by 6 member team and the entiretask was divided into sub- tasks. The process started from identifying the
need, then advertising the same to prospective individuals by distribution
of pamphlets, holding various activities in residential areas etc. then
individuals were surveyed. The questionnaire was designed in such a
manner that it gave a general idea about the ability and capability of
respondent as a prospective life insurance advisor. Certain scores wereallotted depending on the answers given by the respondent. Those who
were high on the scores were motivated to visit the office for conduction
of their interview. After the successful completion of interview
individuals were informed if they were selected for training of Life
advisors. They were asked to fill the NAAF form and a fee was collected
from them along with their photographs. After successful completion of
training an exam was conducted and those who qualified the exam were
selected as life advisors.
The project report submitted here covers theory on recruitment, training
and development, flowchart of activities undertaken for recruitment,
training and development, data analysis of the survey and a list of
suggestions and recommendations for the company at the end of the
entire study.
During the process of summer project we conducted activities in
Residential colonies like Lucknow, Gonda, Balrampur etc.. The samples
of the pamphlets that were designed and were distributed for such
activities have been given in the annexure.
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TABLE OF CONTENTS
Contents
Objective of Project 1
Introduction to the Project 3
Purpose of the Project 4
Significance And Importance of the Project 5
Scope of project 6
Theory on sales promotion 7
Theory on Recruitment and Training 23
Training and Development 27Types of Training and Development 27
Brief history of the Insurance sector in India 35
Profile of Organization 40
Joint Venture Bharti and AXA 41
Bharti AXA Life Insurance 43
Products of Bharti AXA Life Insurance 45
Products for Individuals 45
Products for Groups 47
Research Design and Methodology 48Research Design 52
Sample Design 53
Recruitment Process 54
Data Presentation, Analysis and Interpretation 63
Findings and Suggestions 74
Findings 75
Suggestions 76
Solutions 77
Results 79Limitations of the Project 80
Conclusion 83
Bibliography 85
Annexure 86
Annexure 1 87
Annexure 2 89
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OBJECTIVES OF THE PROJECT
The objectives were-
R- Recruitment
T- Training
D- Development
C- Coding and Licensing
I- Increase in Sales
To analysis insurance as an investment Plan.
To Analysis the pricing of different unit linked investment plans
and handling lindges with other P's of marketing.
To study the consumer perception preference and behaviour
product of Bharti AXA Life Insurance.
Team objective: To recruit more than 5 Life advisors during two months
in Lucknow region.
Individual objective: To interview prospective candidates to be recruited
as LA, assist Managers of Agency in selecting the candidates, make
arrangements for BOPs and to assist in their training, coding and
licensing thereby increasing the sales of the company.
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INTRODUCTION TO THEPROJECT
PURPOSE OF THE PROJECT
The purpose of the company project study was to:
Get hands on experience of recruitment in Insurance sector.
Understand the external recruitment process of Life advisors.
Applying theoretical knowledge to the recruitment practices atBharti AXA.
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SIGNIFICANCE AND IMPORTANCE OF THEPROJECT
In the last few years, the market has undergone some fundamental
changes in terms of technologies, sources of recruitment, competition in
the market etc. In an already saturated market, where the practices like
poaching and raiding are gaining momentum, Sales professionals are
constantly facing new challenges in one of their most important function-
Selling. They have to face and conquer various challenges to find the best
candidates for their organizations which can meet there targets.
The project focuses on the challenges facing the Sales department in the
growing insurance industry in India. Problems caused by the lack of
skilled personnel and the increasing demand for skilled employees are
also discussed in the project.
In addition, challenges regarding the recruitment, training and
development of employees are examined. The project throws light on
various measures taken by Sales department in insurance organizations to
improve the environment and the productivity of employees.
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SCOPE OF THE PROJECT
The project involved recruiting life advisors for Bharti AXA Life
insurance in Lucknow region. The task was taken up by a 6 member team
and the entire process of recruitment was divided into sub- tasks. To
further it, the project also involved arranging for preliminary training of
Life advisors.
The process of recruiting and training Life advisors can be broken into
the following steps:
Identifying individuals who are willing to solicit insurance
business as a life advisor of the company.
Assisting in scheduling the training and examination of the life
advisors.
Assisting and coordinating with Agency Development Manager of
the company for licensing and coding of Life Advisors.
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THEORY ON SALES PROMOTION
By their very nature, Bharti AXA Life Insurance require higher
advertisement and sales promotion expenses than any consumer productoffering measurable performance. Different kinds of advertising and sales
promotion exercises are required to serve the needs of different classes of
investors. For instance, an aggressive push marketing strategy is
required for retail markets, where investors are not adequately aware of
the product and do not have specialized skill in financial market, in
contrast with pull marketing strategies for the wholesale market.
There are certain issues with reference to advertisement, publicity
literature and offer documents, which deserve attention. Most of the Life
Insurance advertisements look similar, focusing on scheme features,
returns and incentives. An investor exposed to the increasing number of
Life Insurance products finds that all the available brands are rather
identical, and cannot appreciate any distinction.
The present form of application, brochures and other literature is
generally lengthy, cumbersome and at times complicated leading to
higher emphasis on advertisement. One of the limiting factors is the
regulatory framework governing advertisements of Life Insurance
products. For instance, in the offer documents, Bharti AXA Life
Insuranceare required to mention the fund objectives in clear terms.Immediately thereafter, the first risk factor that has to be mentioned is
that there is no certainty whether the objectives of the fund will be
achieved or not. Some more relaxation in these may facilitate bringing
more novelty in advertisements, within a broad framework, without
luring investors through false promises, and will certainly improve the
situation.
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Another hurdle is the statutory disclaimer required to be carried along
with every advertisement. Bharti AXA Life Insurancehave to provide risk
factors.
Under the present Life Insurance regulations, a prior approval by SEBI is
a must before a Life Insurance can launch its fund. In the regulation itself,
a period of one month has been provided. But in a months time, perh aps
the situation may so change, that the timing of launch gets affected. The
requirement for getting approval, which normally takes about 2 months
time, defeats the purpose for which the fund was designed also.
QUALITY OF SERVICE
This industry primarily sells quality of services, given that the
performance cannot be promised. It is with this attribute along with
procedural simplicity, that the fund gradually builds its brand and its class
of loyal investors. The qualities of services are broadly categorized as:
Timely services after the sale of the units; and
Continuous reporting of investment performance.
Life Insurance managers must give due attention and evaluate their
performance on each front. They may also consider an option of
conducting a service audit for controlling and improving the quality of
service.
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MARKET RESEARCH
Investment in Life Insurance is not a one-time activity. It is a continuous
activity. The same investor, if satisfied, will come to the fund again and
again. When the investor sends his application, it is not only an
application, but it also contains vital information. Most of this
information if tabulated and analyzed, would provide important insights
into investor needs, preferences and behavior and enables us to target
customers need more accurately, to achieve better penetration, deeper
loyalty and reduced costs. It is in this context that direct marketing will
assume increased importance. Knowing the customer thoroughly is of
utmost importance. Unlike the consumer goods industry, it is not possible
for Life Insurance industry to test market and have pilot projects before
launch. At the same time, focusing and concentrating on a particular
geographic area where the fund has a strong presence and proven
marketing network, can help reduce network, can help reduce issue
expenses and ultimately translate into higher returns for the investor.
Very little research on investor preference is available, but the industry
can collectively have a data bank, and share the information for
appropriate use.
Market Segmentation Different segments of the market have different
risk-return criteria, on the basis of which they take investment decisions.
Not only that, in a particular segment also there could be different sub-
segments asking for yet different risk-return attributes, and differential
preference for various investments attributes of financial product.
Different investment attributes an investor expects in a financial product
are:
Liquidity,
Capital appreciation,
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Safety of principal,
Tax treatment,
Dividend or interest income,
Regulatory restrictions,
Time period for investment, etc.
On the basis of these attributes the Life Insurance market may be broadly
segmented into five main segments as under.
1) Retail Segment
This segment characterizes large number of participants but low
individual volumes. It consists of individuals, Hindu Undivided Families,
and firms. It may be further sub-divided into:
i. Salaried class people;
ii. Retired people;
iii. Businessmen and firms having occasional surpluses;
iv. HUFs for long term investment purpose.
These may be further classified on the basis of their income levels. It has
been observed that prospects in different classes of income levels have
different patterns of preferences of investment. Similarly, the investment
preferences for urban and rural prospects would differ and therefore the
strategies for tapping this segment would differ on the basis of
differential life style, value and ethics, social environment, media habits,
and nature of work. Broadly, this class requires security of the principal,
liquidity, and regular income more than capital appreciation. It lacks
specialised investment skills in financial markets and highly susceptible
to mob behaviour. The marketing strategy involving indirect selling
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through agency network and creating awareness through appropriate
media would be more effective in this segment.
2) Institutional Segment
This segment characterizes less number of participants, and large
individual volumes. It consists of banks, public sector units, financial
institutions, foreign institutional investors, insurance corporations,
provident and pension funds. This class normally looks for more
specialized professional investment skills of the fund managers and
expects a structured product than a ready-made product. The tax features
and regulatory restrictions are the vital considerations in their investment
decisions. Each class of participants, such as banks, provides a niche to
the fund managers in this segment. It requires more of a personalized and
direct marketing to sustain and increase volumes.
3) Trusts
This is a highly regulated, high volumes segment. It consists of varioustypes of trusts, namely, charitable trusts, religious trust, educational trust,
family trust, social trust, etc. each with different objectives. Its basic
investment need would be safety of the principal, regular income and
hedge against inflation rather than liquidity and capital appreciation. This
class offers vast potential to the fund managers, if the regulators relax
guidelines and allow the trusts to invest freely in Life Insurances.
4) Non-Resident Indians
This segment consists of very risk sensitive participants, at times referred
as fair weather friends. They need the highest coveragainst political and
exchange risk. They normally prefer easy exit with repatriation of income
and principal. They also hold a strategic importance as they bring in
crucial foreign exchange a crucial input for developing country like
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ours. Marketing to this segment requires special kind of products for
groups of foreign countries depending upon the provisions of tax treaties.
The range of suitable products are required to design to divert the funds
flowing into bank accounts.
5) Corporates
Generally, the investment need of this segment is to park their occasional
surplus funds that earn return more than what they have to pay on account
of holding them. Alternatively, they also get surplus fund due to the
seasonality of the business, which typically become due for the payment
within a year or quarter or even a month. They need short term parking
place for their fund,. This segment offers a vast potential to specialized
money market managers. Given the relaxation in the regulatory
guidelines, fund managers are expected design products to this segment.
Thus, each segment and sub-segment have their own risk return
preferences forming niches in the market. Bharti AXA Life
Insurancemanagers have to analyze in detail the intrinsic needs of the
prospects and design a variety of suitable products for them. Not only is
that, the products also required to be marketed through appropriately
different marketing strategies.
ADS THE WAY
Increasing sales have given Life Insurance promoters the budget to spend
more on advertising, which has further boosted sales
The Atheists are turning believers. Life Insurances, private sector ones in
particular, who had written off advertising as the ultimate waste of
money have nearly tripled their press media spend from Rs.12.20 crore
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in the period January to April 1998 to Rs. 31.6 crore in January to April
1999, according to data supplied by Prudential ICICI AMC (PIAMC) and
sourced from ORG-MARG.
Whats interesting is that in this period the share of the private sector
Bharti AXA Life Insurancein the categorys total media spending has
surged from 20 percent to 52 percent. This can be attributed to private
sector funds (given the data available with the Association of Bharti AXA
Life Insuranceof India) seeing an increase share of net inflows relative to
the bank-sponsored counterparts in the public sector.
For proof, take a look at some figures. PIAMC which spent Rs. 4.5
crore on advertising in the entire fiscal year 2000 has spent the same
amount during the first four months of the current fiscal itself. Kothari
Pioneer Life Insurance which spent a negligible amount on advertising in
1999-2000 and Rs.163 lakhs in 2001 has already spent Rs. 453 lakhs in
the first three quarter.
Birla Life Insurance, which spent Rs. 1 crore on advertising in the year
1999-2000 plans to double that amount.
Clearly advertising types have something to cheer about. But whats
caused this sudden attitudinal shift towards advertising? According to
experts, funds are being pushed into advertising more by intermediaries
like banks who are reluctant to sell a product whose name is unfamiliar to
investor. Besides, since more open-ended schemes are now available,
some form of ongoing support to keep sales booming has been deemed
necessary by the funds.
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In the words of Mr. Rajiv Vij, vice president marketing, Templeton Asset
Management (India) Pvt. Ltd., The industry has discovered that
advertising in the changed climate today, when investors are most
receptive to Life Insurances, can perk up sales by anywhere between 20-
40 percent. PIAMC managing director Ajay Srinivasan gives his
rationale for stepping up marketing spends: we believe that the brand is
an important part of the consumers decision to invest in a category that is
not yet clearly understood by people. According to the Life Insurance
marketers, advertising helps bring recall when consumers are looking at
investment opportunities. Srinivasan says that tactical advertising has
raised PIAMCs brand awareness from five percent in June 1993 to 34
percent now, as per a recent IMRB survey.
Advertising backed by an integrated marketing and communication
campaign designed to attract investors with long term prospective has
helped the fund post a redemption-to-sales ratio of just about five percent
as compared to 20-30 percent for the industry on an average.
But what mode of advertising do these funds choose? To sell the
category, avers VIJ, mass media is more effective because one needs to
target a large segment of the population. Life Insurance marketers feel
that since the category is information centric, press is the best medium
to get across ones message. Within the print media, most marketers feel
that a combination of leading mainline and financial newspapers
complemented by finance/ business magazines, with relevant thematic
appeal and editorial content are the perfect mix.
Direct mail is another medium, which some funds have successfully used.
But rather than sending out mailers to all and sundry, there is a need for
appropriate targeting.
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Educational seminars are the final leg in the marketing and
communication process. In these, investors conditioned by advertising
and hooked by an interesting mailer can have lingering doubts clarified.
Attractive point of purchase (POP) material can also help.
Another very successful media niche, which has been exploited to the hilt
by funds, is intermediary magazines and newsletters. Besides the low
costs of advertising in these newsletters, these publications circulate to
those who are looking for investment opportunities and thus represent an
extremely lucrative target segment.
Advertising content by most of the funds too has undergone a marked
change from concept-selling ads dispelling myths, to selling specific
schemes that meet defined objectives/ goals.
But why is advertising suddenly working for Bharti AXA Life
Insurancewhen it doesnt seem to have made a difference earlier? A
sustained marketing strategy instead of a few, scrappy ads is now seen tobe the key to investor demand.
According to Birla Sun Life AMC chief market development officer
N.K.Sharma, advertising serves as a reminder complementing a sales
push by the distributor. Since the distributor wasnt ready in earlier
years, advertising then, didnt work, he says. Brand building, is a long-
term exercise. Just like Bharti AXA Life Insuranceadvocate that investors
take a long-term approach to investing, similarly funds need to take a
long-term approach to brand building.
Fund marketers and industry observers however, caution against the
danger of selling the product for the wrong reasons. Funds need to focus
on sustainable communication. They need to build brands that strike a
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chord with investors by relating to their concerns rather than selling
flavour-of-the-month style. The winning formula as industry watchers put
it is the troika of performance, service and trust for meeting long term
needs or goals.
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Changes that have taken place since the advent of the Net
Lower Costs: Distribution of funds will fall in the online trading
regime by 2003. Bharti AXA Life Insurancecould bring down their
administrative costs to 0.75% if trading is done on- line. As per
SEBI regulations, bond funds can charge a maximum of 2.25% and
equity funds can charge 2.5% as administrative fees. Therefore if
the administrative costs are low, the benefits are passed down and
hence Bharti AXA Life Insuranceare able to attract mire investors
and increase their asset base.
Better advice: Bharti AXA Life Insurancecould provide better
advice to their investors through the Net rather than through the
traditional investment routes where there is an additional channel
to deal with the Brokers. Direct dealing with the fund could help
the investor with their financial planning.
In India, brokers could get more Net savvy than investors and
could help the investors with the knowledge through get from the
Net.
New investors would prefer online: Bharti AXA Life Insurancecan
target investors who are young individuals and who are Net savvy,
since servicing them would be easier on the Net.
India has around 1.6 million net users who are prime target for
these funds and this could just be the beginning. The Internet users
are going to increase dramatically and Bharti AXA Life
Insuranceare going to be the best beneficiary. With smaller
administrative costs more funds would be mobilized .A fund
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manager must be ready to tackle the volatility and will have to
maintain sufficient amount of investments which are high liquidity
and low yielding investments to honor redemption.
Net based advertisements: There will be more sites involved in ads
and promotion of Life Insurances. In the U.S. sites like AOL offer
detailed research and financial details about the functioning of
different funds and their performance statistics. a is witnessing a
genesis in this area . There are many sites such as indiainfoline.com
and indiafn.com that are doing something similar and providing
advice to investors regarding their investments.
Reasons for bad performance of Bharti AXA Life Insurance
Most investors associate Bharti AXA Life Insurancewith Master gain,
Monthly Equity Plans of SBI Life Insurance, UTI and Canbank Life
Insurance and of course Morgan Stanley Growth Fund. This is so because
these funds truly had participation from masses, with a fund like Morgan
Stanley having more than 1 million investors. Investors feel that after 5
years, Morgan Stanley Growth Fund units still trade below the original
IPO price of Rs 10.
It is incorrect to think that all Bharti AXA Life Insurancehave performed
poorly. If one looks at some income funds, they have come with
reasonable returns. It is only the performance of equity funds, which has
been poor. Their poor performance has been amplified by the closed end
discounts i.e. units of these funds quoting at sharp discounts to their NAV
resulting in an even poorer return to the investor.
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One must remember that a Life Insurance does not provide assured
returns and neither can it "manufacture" returns out of thin air. Returnsprovided by Bharti AXA Life Insuranceare a function of the returns in the
underlying asset class in which the fund invests. Good funds can beat
returns in their asset class to some extent but thats all. E.g. take the case
of a sector specific fund like a pharma fund which invests only in shares
of pharmaceutical companies. If the Govt. comes with new regulation that
severely restricts the pricing freedom of these companies resulting in
negative outlook for the sector, the prices of all stocks in the sector could
fall substantially resulting in severe erosion in the NAV of the fund. No
one can do anything about it. A good fund manager would probably sell
part of the fund before prices fall too much and wait for an opportune
time to reinvest at lower levels once the dust has settled. In that case, the
NAV of the fund would fall to a lesser extent but fall it will. If the
investor in the fund has invested in some stocks in the sector on his own,
in all probability, his personal investments may have depreciated to a
larger extent.
Most Life Insurance managers took some time to realize the changed
circumstances wherein the open economy ushered in by the liberalization
took the full impact of the global deflation in commodity prices. Thisproblem was compounded further by the Asian crisis after which cheap
imports from Asia caused severe pressure on profits.
One more issue is that the fund managers in many funds were not
"professionally qualified and experienced". This is especially true of
some of the funds floated by nationalized banks. Some of these
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individuals were transferred from the parent organization and did not
really know much about investment management.
Lastly, investors would do well to have a look at the investments, which
they made on their own. In most cases, they would have done much
worse than the Life Insurances. We have received numerous requests for
advice from individual investors on what to do about their own
investments. If that were any indicator, investors would have done really
badly.
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Market Share of Bharti AXA Life Insurancein India
S.No. Asset Management
Company
AUM
(Rs. In Crore)
Market Share
( in %)
1. ABN Amro 1572.1 0.94
2 Alliance Capital 1341.91 0.80
3. Benchmark 495.85 0.30
4. Birla Sun Life 10722.37 6.38
5. BoB 124.85 0.07
6. CanBank 1895.46 1.13
7. Cholamandalam 910.79 0.54
8. Deutsche 2317.65 1.38
9. DSP ML 7074.2 4.21
10. Escorts 122.62 0.07
11. Fidelity 1495.4 0.89
12. Franklin Templeton 17079.3 10.17
13. Global Insurance Co. 122.09 0.07
14. HDFC 15709.86 9.35
15. HSBC 7569.61 4.51
16. ING Vysya 1925.17 1.15
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17. JM Financial 3975.26 2.37
18. Kotak Mahindra 7296.86 4.34
19. LIC 2872.26 1.71
20. Morgan Stanely 1640.47 0.98
21. Principal 611.5 3.64
22. Pru ICICI 17196.43 10.24
23. Reliance 10129.89 6.03
24. Sahara 300 0.18
25. SBI 7182.29 4.28
26. Standard Chartered 8143 4.85
27. Sundram 1871.42 1.11
28. TATA 8164.23 4.86
29. Taurus 176.27 0.10
30. UTI MF 22443.74 13.36
Total AUM 167986.85 100.00
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THEORY ON RECRUITMENT & TRAINING
The Recruitment Process: Recruitment refers to the process of
sourcing, screening, and selecting people for a job or vacancy within an
organization. Though individuals can undertake individual components of
the recruitment process, mid- and large-size organizations generally
retain professional recruiters. These are the main stages in recruitment.
A) Sourcing: Sourcing involves
1) Advertising- It is a common part of the recruiting process, often
encompassing multiple media, such as the Internet, general newspapers,
job ad newspapers, professional publications, window advertisements, job
centers, and campus graduate recruitment programs; and
2) Recruiting Research- which is the proactive identification of relevant
talent who may not respond to job postings and other recruitment
advertising methods done in #1. This initial research for so-called passive
prospects, also called name-generation, results in a list of prospects who
can then be contacted to solicit interest, obtain a resume/CV, and be
screened (see below).
B) Screening & Selection:
Suitability for a job is typically assessed by looking for skills, e.g.
communication, typing, and computer skills. Qualifications may be
shown through rsums, job applications, interviews, educational or
professional experience, the testimony of references, or in-house testing,
such as for software knowledge, typing skills, numeracy, and literacy,
through psychological tests or employment testing.
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In some countries, employers are legally mandated to provide equal
opportunity in hiring.
C) On boarding:
A well-planned introduction helps new employees become fully
operational quickly and is often integrated with the recruitment process.
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SOURCES OF RECRUITMENT
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Training and Development
In organizational development, the related field of training and
development (T & D) deals with the design and delivery of learning to
improve performance, skills, or knowledge within organizations.
In some organizations the termLearning and Developmentis used instead
of Training and Development in order to emphasize the importance of
learning for the individual and the organization. In other organizations,
the termHuman Resource Developmentis used.
Types of Training & Development
1. Coaching
2. Continuing Professional Development or CPD
3. E-learning aka Online Learning, Distance Learning, Web-Based
Learning
4. Executive education
5. Executive development
6. Leadership development
7. Instructional Animation
8. Instructional Design
9. Instructional Strategies
10. Knowledge Management
11. Organizational Learning
12. Organizational knowledge
13. Mentoring
14. Teaching Method
15. Blended learning
16. Outbound Management Development Programmes
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17. Performance Management
The various forms of Training and development are explained below.
1. Coaching is a method of directing, instructing and training a
person or group of people, with the aim to achieve some goal or
develop specific skills. There are many ways to coach, types of
coaching and methods to coaching. Direction may include
motivational speaking. Training may include seminars, workshops,
and supervised practice.
2. Continuing Professional Development (CPD) or Continuing
Professional Education (CPE) is the means by which members of
professional associations maintain, improve and broaden their
knowledge and skills and develop the personal qualities required in
their professional lives. CPD is defined as the holistic commitment
to structured skills enhancement and personal or professional
competence.
3. Electronic learning (or e-Learning or eLearning) is a type of
education where the medium of instruction is computer technology.
4. No in-person interaction may take place in some instances. E-
learning is used interchangeably in a wide variety of contexts. In
companies, it refers to the strategies that use the company network
to deliver training courses to employees. In the USA, it is defined
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as a planned teaching/learning experience that uses a wide
spectrum of technologies, mainly Internet or computer-based, to
reach learners at a distance. Lately in most Universities, e-learning
is used to define a specific mode to attend a course or programmes
of study where the students rarely, if ever, attend face-to-face for
on-campus access to educational facilities, because they study
online.
5. Executive Education is the term used for programs at graduate-
level business schools that aim to give classes for Chief Executives
and other top managers or entrepreneurs. These programs do not
usually end in a degree, although there is an ever-growing number
of an Executive MBA program that are very similar and offer a
Masters of Business Administration upon completion of the
coursework.
6. Executive development is the whole of activities aimed at
developing the skills and competencies of those that (will) have
executive positions in organizations. While "executive" and
"manager" and "leader" is often used interchangeably, "executive"
is commonly used to signify the top 5% to 10% of the organization.
Similarly, "development" and "training" and "education" are often
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7. used as synonyms, however "development" is generally seen as the
most encompassing of the three in terms of activities that build
skills and competencies.
8. Leadership development: Leadership development refers to any
activity that enhances the quality of leadership within an individual
or organization. These activities have ranged from MBA style
programs offered at university business schools to high-ropes
courses and executive retreats.
9. Instructional Animations are animations that are used either to
provide instructions for immediate performance of a task or to
support more permanent learning of subject matter. While both of
these uses can be described as instructional animations, when the
goal is to support learning, the term educational animation may be
preferred.
10.Instructional Design is the practice of arranging media
(communication technology) and content to help learners and
teachers transfer knowledge most effectively. The process consists
broadly of determining the current state of learner understanding,
defining the end goal of instruction, and creating some media-
based "intervention" to assist in the transition. Ideally the process is
informed by pedagogically tested theories of learning and may take
place in student-only, teacher-led or community-based settings.
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The outcome of this instruction may be directly observable and
scientifically measured or completely hidden and assumed.
11.Knowledge Management ('KM') comprises a range of practices
used by organizations to identify, create, represent, distribute and
enable adoption of what it knows, and how it knows it. It has been
an established discipline since 1995 with a body of university
courses and both professional and academic journals dedicated to
it. Many large companies have resources dedicated to Knowledge
Management, often as a part of 'Information Technology', 'Human
Resource Management' or Business strategy departments.
Knowledge Management is a multi-billion dollar world-wide
market.
12.Organizational learning is an area of knowledge within
organizational theory that studies models and theories about the
way an organization learns and adapts. In Organizational
development (OD), learning is a characteristic of an adaptive
organization, i.e., an organization that is able to sense changes in
signals from its environment (both internal and external) and adapt
accordingly. OD specialists endeavor to assist their clients to learn
from experience and incorporate the learning as feedback into the
planning process.
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13.Organizational knowledge: What is the nature of knowledge
created, traded and used in organizations? Some of this knowledge
can be termed technicalknowing the meaning of technical words
and phrases, being able to read and make sense of economic data
and being able to act on the basis of law-like generalizations.
Scientific knowledge is propositional; it takes the form of causal
generalizations whenever A, then B. For example, whenever
water reaches the temperature of 100 degrees, it boils; whenever it
boils, it turns into steam; steam generates pressure when in an
enclosed space; pressure drives engines. And so forth.
14.Mentorship refers to a developmental relationship between a more
experienced mentor and a less experienced partner referred to as a
protg, mentoree, or (person) being mentoreda person
guided and protected by a more prominent person.
15.Teaching methods are best articulated by answering the questions,
"What is the purpose of education?" and "What are the best ways
of achieving these purposes?". For much of prehistory, educational
methods were largely informal, and consisted of children imitating
or modeling their behavior on that of their elders, learning through
observation and play. In this sense the children are the students,
and the elder is the teacher. A teacher creates the course materials
to be taught and then enforces it.
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16.Blended Learning is the combination of multiple approaches to
learning. Blended learning can be accomplished through the use of
'blended' virtual and physical resources. A typical example of this
would be a combination of technology-based materials and face-to-
face sessions used together
to deliver instruction. In the strictest sense, blended learning is when
an instructor combines two methods of delivery of instruction.
However, this term most often applies to the use of technology on
instruction. A good example of blended learning would be to give a
well-structured introductory lesson in the classroom, and then to
provide follow-up materials online.
17.Outbound Management Development Programmes are a
training method for enhancing organizational performance through
experiential learning.These programmes generally revolve around
activities designed to improve leadership, communication skills,
planning, change management, delegation, teamwork, and
motivation. Participants are divided into teams and assigned tasks
or activities for completion in a specified time. Achievement and
performance during these activities is reviewed in group
discussions to identify behaviors that enhance performance or lead
to failure or decreased performance.
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18.Performance measurement is the process of assessing progress
toward achieving predetermined goals. Performance management
is building on that process, adding the relevant communication and
action on the progress achieved against these predetermined goals.
In network performance management
(a) A set of functions that evaluate and report the behavior of
telecommunications equipment and the effectiveness of the network or
network element and
(b) a set of various sub-functions, such as gathering statistical
information, maintaining and examining historical logs, determining
system performance under natural and artificial conditions, and
altering system modes of operation.
In organizational development (OD), performance can be thought
of as Actual Results vs Desired Results. Any discrepancy, where
Actual is less than Desired, could constitute the performance
improvement zone. Performance management and improvement
can be thought of as a cycle:
1. Performance planning: where goals and objectives are established
2. Performance coaching: where a manager intervenes to give
feedback and adjust performance
3. Performance appraisal: where individual performance is formally
documented and feedback delivered.
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Brief History of the Insurance Sector in India
The business of life insurance in India in its existing form started in India
in the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.
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 centuriesyet
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 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 these
companies were not insuring Indian natives.
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.
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.
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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.
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.
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Some of the important milestones in the life insurance business in
India are:
1850: Non life insurance debuts with triton insurance company.
1870: Bombay mutual life assurance society is the first Indian owned life
insurer.
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 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.
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Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and
RBI Governor R. N. Malhotra, was formed to evaluate the Indianinsurance industry and recommend its future direction.
The Malhotra committee was set up with the objective of complementing
the reforms initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in
mind the structural changes currently underway and recognizing that
insurance is an important part of the overall financial system where it was
necessary to address the need for similar reforms.
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The Insurance Regulatory and Development
Authority (IRDA)
The Insurance Act, 1938 had provided for setting up of the Controller of
Insurance to act as a strong and powerful supervisory and regulatory
authority for insurance. Post nationalization, the role of Controller of
Insurance diminished considerably in significance since the Government
owned the insurance companies.
But the scenario changed with the private and foreign companies foraying
in to the insurance sector. This necessitated the need for a strong,
independent and autonomous Insurance Regulatory Authority was felt.
As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim
Insurance Regulatory Authority pending the enactment of a
comprehensive legislation.
The Insurance Regulatory and Development Authority Act, 1999 is an act
to provide for the establishment of an Authority to protect the interests of
holders of insurance policies, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or
incidental thereto and further to amend the Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and the General insurance Business
(Nationalization) Act, 1972 to end the monopoly of the Life Insurance
Corporation of India (for life insurance business) and General Insurance
Corporation and its subsidiaries (for general insurance business).
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PROFILE OF ORGANIZATION
Bharti AXA Life Insurance is a joint venture between Bharti, one of
Indias leading business groups with interests in telecom, agri business and
retail, and AXA, world leader in financial protection and wealth management.
The joint venture company has a 74% stake from Bharti and 26% stake of
AXA.
.
The company launched national operations in December 2006. Today, we have
over 5200 employees across over 12 states in the country. Our business
philosophy is built around the promise of making people "Life Confident".
As we expand our presence across the country to cater to your insurance and
wealth management needs with our product and service offerings, we continue
to bring 'life confidence' to customers spread across India. Whatever your plans
in life, you can be confident that Bharti AXA Life will offer the right financial
solutions to help you achieve them.
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The Joint Venture BHARTI and AXA
BHARTI
Bharti Enterprises is one of Indias leading business groups with interests
in telecom, agri business, insurance and retail. Bharti has been a
pioneering force in the telecom sector with many firsts and innovations to
its credit. Bharti Airtel Limited, a group company, is one of Indias
leading private sector providers of telecommunications services with an
aggregate of 60 million customers, spanning mobile, fixed line,
broadband and enterprise services. Bharti Airtel was ranked amongst thebest performing companies in the world in the BusinessWeek IT 100 list
2007. Bharti Teletech is the countrys largest manufacturer and exporter
of telephone terminals. Bharti has a joint venture with ELRo Holdings
India
Ltd.FieldFresh Foods Pvt. Ltd - for global distribution of fresh fruitsand vegetables. Bharti also has a joint venture - Bharti AXA Life
Insurance Company Ltd. - with AXA, world leader in financial
protection and wealth management. Bharti has recently forayed into the
retail business under a company called Bharti Retail Pvt. Ltd. It also has a
joint venture Bharti Wal-Mart Private Limited with Wal-Mart, for
wholesale cash-and-carry and back-end supply chain management
operations.
AXA Group
AXA Group is a worldwide leader in Financial Protection. AXA's
operations are diverse geographically, with major operations in Western
Europe, North America and the Asia/Pacific area. AXA had Euro 1,315
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billion in assets under management as of December 31, 2006. For full
year 2006, IFRS revenuesamounted to Euro 79 billion, IFRS underlying
earnings amounted to Euro 4,010 million and IFRS adjusted earnings to
Euro 5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on
the Paris Stock Exchange. The AXA American Depository Share is also
listed on the NYSE under the ticker symbol AXA.
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Bharti AXA Life Insurance
Vision
To be a leader and the preferred company for financial protection and
wealth management in India by 2012.
Values
Professionalism
Innovation
Team Spirit
Pragmatism
Integrity
Strategy
To achieve a top 5 market position in India through a multi-
distribution, multi-product platform
To adapt AXA's best practice blueprints as a sound platform for
profitable growth
To leverage Bharti's local knowledge, infrastructure and customer
base To deliver high levels of shareholder return
To build long term value with our business partners by enhancing
the proposition to their customers
To be the employer of choice to attract and retain the best talent in
India
To be recognized as being close and qualified by our customers
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GOOD PRACTICES
The guiding Human Resources principles at Bharti AXA are:
1. Clearly define scope of responsibilities and empower people to deliver2. Provide people with the means to develop their competencies
3. Consider individual training and development a priority investment
4. Build organizations that are conducive to teamwork and that involve
everyone
5. Promote ongoing dialogue between managers and the people who
report to them
6. Make cultural difference a key source of strength.
Strategic differentiators:
Strong partner Bharti - provides access to customer base of more
than 20 million.
Multi channel execution capability.
Current Asia product range which is a strong match to products
sold to the mass and mass affluent.
Global scale providing cost effective and speedy re-use of systems,
products and business capability.
Strong AXA and Bharti brands which can be leveraged to attract
and retain a high quality management team.
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Insurance Products of Bharti AXA
Life insurance products for individuals:
Bharti AXA Dream Life Pension
A Unit Linked Pension Product
Dream Life Pension, Bharti AXA Life Insurances unique pension
product ensures that your retirement life is your Dream Life.
Bharti AXA Life Aspire Life
Unit Linked Endowment Product.
Aspire Life helps you create a pool of wealth to meet your long-term
needs, while also providing you adequate protection in case the need
arises.
Bharti AXA Life Invest Confident
Unit Linked Single Premium Product.
You have always strived hard to achieve the best for you and your loved
ones, so when it comes to making an investment decision, we know that
you would expect the best from it too.
Bharti AXA Life Wealth Confident
A unit-linked investment cum protection policy.
Your wealth, your status ensures that you get preferential status wherever
you go. So why shouldn't your money get the same?
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Bharti AXA Life Future Confident
A unit-linked policy which offers comprehensive protection along with
wealth creation in the long term.
Bharti AXA Life Future Confident II
A unit-linked product which offers enhanced protection along with
wealth creation in the long term.
Bharti AXA Life Save Confident
Traditional money back insurance product for long term savings.
Your changing lifestages decide your financial milestone planning. When
you foresee intermittent financial requirements in the years to come, like
regular expenses related to your childs education, liquidity becomes a
key aspect of your planning along with long term savings, and protection
for your family.
Bharti AXA Life Secure Confident
A Long Term Life Insurance.
All of us desire to maximise the happiness for our family at all times,
irrespective of the circumstances. The thought of unfortunate events
befalling us may cause us anxiety about providing a secured happiness to
our loved ones.
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Life insurance products for Group Insurance:
Bharti AXA Life Mortgage Credit Shield
Mortgage Credit Shield is a Group Product that provides coverage to
people who have availed of a Mortgage\ Home loan\ Home equity loan
from an Institution/Bank.
Bharti AXA Life Credit Shield
Credit Shield is a Group Product that provides coverage to people whohave availed of a loan for 1 to 5 years from Group Policy holder.
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is
done. We can say that research methodology has many dimensions and
research methods do constitute a part of the research methodology. The
study of research methodology gives the student the necessary training in
gathering material and arranging or car-indexing them, participation in
field work when required, and also training in techniques for the
collection of data appropriate to particular problem, in the use of
statistics, questionnaires and controlled experimentation and in recording
evidences, sorting it out and interpreting it. Knowledge of research
methodology plays a key role in project work. It consists of series of
actions or steps necessary to effectively carry out research and the desired
sequencing of these steps.
Data Collection Method
Data can be collected by Primary as well as secondary method.1) Primary Data Sources
Questionnaire methods and discussions with the HR and the employees
were used to collect data.
Questionnaire Designed: Questionnaire was used for the survey.
2) Secondary Data Sources
The secondary data sources were collected from the company manuals,handbooks, and management books and are edited to suite the purpose.
Investment in Life Insurance is not a one-time activity. It is a continuous
activity. The same investor, if satisfied, will come to the fund again and
again. When the investor sends his application, it is not only an
application, but it also contains vital information. Most of this
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information if tabulated and analyzed, would provide important insights
into investor needs, preferences and behavior and enables us to target
customers need more accurately, to achieve better penetration, deeper
loyalty and reduced costs. It is in this context that direct marketing will
assume increased importance. Knowing the customer thoroughly is of
utmost importance. Unlike the consumer goods industry, it is not possible
for Life Insurance industry to test market and have pilot projects before
launch. At the same time, focusing and concentrating on a particular
geographic area where the fund has a strong presence and proven
marketing network, can help reduce network, can help reduce issue
expenses and ultimately translate into higher returns for the investor.
Very little research on investor preference is available, but the industry
can collectively have a data bank, and share the information for
appropriate use.
This study on Life Insurances in India has been based on primary as well
as secondary data sources.
The primary data is collected by the getting the questionnaire filled from
the common investor above the age of 25.
For this research, I have made use of a questionnaire for ascertaining the
investment pattern of a common investor.
The questionnaire consisted of 13 questions in total, each question having
various multiple choices. Depending upon the choice selected by the
respondent, each respondent gets a total score which represents his degree
of favorability towards the kind of investment he makes and his
knowledge about the investments.
The main aim of conducting the survey using a questionnaire was to
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understand the perception of small investors, who are the most exploited
in Indian capital Market, analyze the type of funds available for the
investor, understand the investment pattern of a common investor,
importance of marketing Strategies in Life Insurances.
This was done by ascertaining the average response of all the samples for
the total 13 questions asked in the questionnaire. The results for the 13
questions asked were further graphically represented, showing the
favorability towards different parameters.
The secondary resources used in the study are:
Books
Journals
Magazine Articles
Internet Websites.
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RESEARCH DESIGN
Exploratory type of research designs adopted because sources of
information are relatively few and the purpose is merely to find and tounderstand the possible actions. The major purposes of exploratory study
are:
Identification of problem
The precise formulation of problems including the identification of
variables
Formulation of alternative course of action
An exploratory research is often the first in the series of projects that
culminates in one concerned with the drawing of inferences that are used
as a basis of monetary action. Exploratory study is often used as a
introductory phase of a larger study and results are used in developing
specific technique for larger study. Of the study the relevant
questionnaire was prepared and circulated among a stratified sample of
50 employees of BHARTI AXA LIFE INSURANCE Limited. This
questionnaire formed the basis for the views on each of the points raised
in the questionnaire. The data thus obtained formed the basis of
information regarding the existing recruitment and selection processes atBHARTI AXA LIFE INSURANCE. and the same is analyzed and
interference is drawn regarding the various aspects of recruitment and the
entire process of selection at BHARTI AXA LIFE INSURANCE
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SAMPLE DESIGN
Sampling technique:
Stratified sampling technique is adopted to conduct the research.
Stratified purposive sapling is a selection method for achieving a greater
degree of representatives, therefore decreasing the probable sampling
error. It is based on the concept that a homogeneous population produces
samples with smaller sampling errors than does a heterogeneous
population. Stratified sampling is accomplished by placing all the
members of the population into groups according to some characteristics
that is common among them, that is homogeneous subsets of the
population. Then specified number of unit is chosen from each of the
groups or strata by purposive means.
Sampling Plans
The sampling plan consists of sampling units, e.g. from functional
departments namely Marketing, Commercial, Technical and Human
Resource. These employees constitute the manpower in the company who
are engaged in the day to day functioning of the company, thus it is very
important for them to understand the various aspects of the entire
selection process and also the importance of performance appraisal
system. Therefore, they had been selected for the project sampling
Sample Size:- Sample size was taken 1100 to undertake the survey.
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The Recruitment Process flowchart:-
Following is the flowchart of steps followed in recruitment of Life
advisors:
Identifying Vacancy & advertising it
Prepare Job Description and person Specification
Short-listing on the basis of Q scores
Conduction of interview
Filling up the compulsory IRDA form
Scheduling the training
Conduction of examination
Final selection as LA
The elaboration on all the steps given in the flow chart above is given in
the following pages.
1.Identifying vacancy and advertising it: the following changes in the
scenario led to the increasing vacancy for life advisors in Bharti AXA
Pune.
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Expansion of business as well as market.
Growing competition.
Change in demographics.
After the identification of vacancy pamphlets containing the details
were prepared and were distributed. The pamphlets used by us have
been provided as Annexure 1, 2 and 3.
2.Preparing job description and person specification:
2.1 Career Bandwidth as a Life advisor at Bharti AXA:
2.1.1 As a Life Advisor at Bharti AXA, there is only one way to
grow. And thats by meeting and exceeding your targets.
2.1.2 As a good performer, you stand to get promoted from Bronze to
Diamond Club and enjoy special remuneration benefits.
2.1.3 As a Life Advisor, you can get appointed as an Agency
Manager within a span of just 9 months to 1 year.2.1.4 As a Life Advisor, you also get to participate in various
business related projects and committees.
2.2 Compensation
2.2.1 As a Life Advisor, you have the opportunity to create attractive
earnings for the first year and for the long term through payouts.
2.2.2 Higher the business you generate in the first year, higher the
income you stand to earn year after year.
2.2.3 Get rewarded through Best in Class Rewards and Recognition
programs including overseas conventions.
2.3 Support
2.3.1 All Bharti AXA branches have HR services for support on all
matters related to compensation and career so you can redress
your concerns immediately.
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2.3.2 State-of-the-art Distribution Training support.
2.3.3 Comprehensive marketing support in terms of brochures,
illustrations etc.
2.3.4 Sales Management Support for on the job training and business
closure.
2.3.5 Infrastructure & Technology support through dedicated Life
Advisors bay equipped with telephones, computers and internet
at Bharti AXA premises.
2.3.6 Customer Service and operations support.
2.3.7 The details about the rewards and recognition are given in
Annexure 4.
3.Short Listing on the basis of Q scores:
3.1 The five Qs- The Qs are 5 different criteria where the candidates
are to be analyzed.
3.1.1 Q1- The candidate should have been a resident of Lucknow for
at least five years.
3.1.2 Q2- He/ She should be married.
3.1.3 Q3- His/ Her annual income should be at least 1.2 to 1.5 Lakhs.
3.1.4 Q4- He/ She should be a graduate.
3.1.5 Q5- Minimum age to be eligible for being a life advisor is 18.
3.2 The significance of Qs
3.2.1 A high Q score implies possibility of better performance by the
candidate as a life advisor (meaning better revenue generation
ability). On an average only a candidate with a score of Q4 or
Q5 was interviewed.
3.2.2 A low Q score implies lesser possibility of such performance.
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4.Conduction of interview:
4.1 Pre- interview: Preparation of recruitment /selection document for
Advertising.
4.1.1 Preparing advertisement
4.1.2 Media selection
4.1.3 Positioning
4.2 Response handling
4.2.1 Initial interview online or telephone
4.2.2 Short-listing for interviews
4.2.3 Interview arrangement
4.2.4 Sending emails or calling short listed candidates
4.2.5 Interview details to the short listed candidates
4.3 During Interview
4.3.1 HR interview
4.3.2 Technical interview
4.3.3 Conducting tests [Aptitude / Mathematical / Analytical etc.]
4.3.4 Initial final list of candidates
4.3.5 Reference check (if required)
4.4 Post interview
4.4.1 Email or Telephone call to unsuccessful candidates.
4.4.2 Technical Manager approval for a start up date.
4.4.3 Email or Telephone call to successful candidates.
4.4.4 HRM prepares a letter of appointment.
4.5 Selection Process
4.5.1 Starts with the preliminary interview.
4.5.2 Ends with contract of employment.
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4.5.3 Different process for different organization.
4.5.4 Different process for different job in same organization.
4.5.5 Selection easy for shop floor workers.
4.5.6 Selection of managers are crucial.
4.5.7 Affected by internal & external environment.
4.5.8 Mutual decision making.
5.Filling up of compulsory IRDA form: A NAAF (New advisor
application form) is to be filled up by the candidate. Provided as
annexure.
6.Scheduling of the training: Guidelines as per provisions of IRDA
Act for training of life advisors (effective from 31st
October 2004).
6.1 The applicant shall have to undergo at least 100 hours practical
training in life or general insurance business which may be spread
over three to four weeks, where such applicant is seeking license
for the first time to act as an insurance agent.
6.2 The training duration should be minimum 18 working days
excluding Sundays and holidays.
6.3 No product training/market survey should be included into this
hundred 100 hours training. The product training, if any, to be
given by the insurance company should be over and above the
minimum training hours prescribed by the Authority
6.4 The attendance record of the trainees should be maintained at the
Institute for necessary inspection at any given point of time.
6.5 In case of short-fall of attendance, extra class may be permitted but
the extra hours may be specified separately with proper attendance
and details of faculty.
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6.6 Every Institute should have at least one qualified permanent faculty
who is an Associate or Fellow from the Insurance Institute of India
for each stream i.e. for Life and Non-Life.
6.7 The attendance register of the faculty members should be
maintained at the training institutes.
6.8 The record of the payment made to faculty should be maintained at
the training institute i.e. batch-wise payment detail should be
maintained.
6.9 The faculty should provide details of the other Institutes with
whom they have been empanelled as part-time/guest faculty.
6.10 Register should be maintained at the training institute giving details
of batches completed, strength of the each batch, number of
candidates decertified, name of the sponsored insurer and details of
faculty who imparted the training with dates.
6.11 The seating capacity of each class-room should not exceed 40.
6.12 The fresh accreditation will be given on need basis after assessingthe needs of the particular city/town.
6.13 The initial approval will be for a period of 3 years and
consideration of further renewal up to 3 years would depend on the
satisfactory compliance of requirements of accreditation.
6.14 The insurance companies would regularly send their officials to
oversee the proper conduct of the training at the institutes andwould not sponsor candidates to those institutes that are not
maintaining the required standards of and facilities for the training.
6.15 The training institute must display the certificate of accreditation to
impart training issued by the Authority at the training institute.
6.16 The Institute should not allow a franchisee to conduct courses on
its behalf even if the faculty is that of the Institute. The Institute
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should conduct the training on its own premises or hired premises
with proper infrastructure.
6.17 No marketing fee/consultancy fee payment is permitted for getting
the training batches.
6.18 It will be the responsibility of the Insurance Company to check the
status of the institute before sponsoring any candidates for training.
6.19 In case of mofussil areas or the cities where there are no accredited
institutes and an insurance company intends to appoint agents, it
will be the responsibility of the insurance company to conduct
training.
6.20 The Institutes must keep with them one set of records of the
training at the place where the training is being imparted.
6.21 The Institute should confine its activities only to the place/city for
which it has been given the approval. No training outside the said
place/city is permitted.
6.22 The Institutes must submit a copy of the lease deed/rent agreementat the time of seeking fresh accreditation/renewal/change of
address of the institute.
6.23 On successful completion of training the candidates get COT i.e.
the Completion of Training Certificate by Bharti AXA.
7.Conduction of examination:
7.1 Syllabus: the syllabus prescribed by the authority for life insurance
agents is given in annexure 6. it is indicative and not exhaustive.
The self study course material developed by institute in book form
only the broad basis of examination which is available for sale with
the institute and its associated institutes. A candidate is expected to
study the course material in depth and also assimilate general
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information relevant to the subject. Candidate is also expected to
know up-to-date developments in the insurance industry.
7.2 Pattern of examination: normally objective type multiple choice
questions are asked. A candidate is required to indicate the correct
alternative. A candidate is required to secure at least 50% marks to
be declared successful. But the institute reserves the right to
change, the pattern of question paper for the examinations without
notice to anyone to test the knowledge of the candidate as it deems
fit.
7.3 Mode of examination: The test can be taken up in either of the
two modes- online or offline. Depending on the mode of testing the
training is also arranged. For online mode the training is also done
online whereas in offline mode the training is done in the class
room format of. The duration of classroom training is 6+2 days.
Where 6 days are reserved for compulsory IRDA training and the
remaining 2 days are for product based training.7.4 Admission card: No candidate will be allowed to appear for the
examination unless he/ she produces the admission card. The
admission card will be issued by Bharti AXA. Besides admission
card candidate must possess COT issued by Bharti AXA.
7.5 Sample questions: a list of sample questions is given as annexure.
8.Final selection as Life Advisor: the final selection as Life advisor iscommunicated to the candidate.
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Analysis 1
Age of respondents: the following is the distribution of age of the
respondents.
Age 45 Years
Number of
individuals
584 396 73 47
Less than 25 years of age individuals constitute 53% of sample
size.
Whereas individuals with more than 45 years of age constitute only
4%.
Interpretation: sample which has been surveyed is dominated by
younger individuals.
Age of respondents
584
396
73 47
0
100
200
300
400
500
600
700
45 years
Age
Number of individuals
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Analysis 2
Sex of respondents
Interpretation: Sample is dominated by males which constitute 74% of
total size.
Sex of Respondent
male, 814, 74%
female, 286, 26%
male female
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Analysis 3
Occupation of Respondents
Occupation Student Pvt.
Employee
Govt.
Employee
Proprietor Others
Number 436 395 87 135 47
Interpretation: Sample is dominated by students and Private Employees
(76%).
govt. employee, 87
pvt. Emp