Human Relation Management in Insurance Company

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY
CHAPTER: 1
INTRODUCTION
‘Human Relations ‘refers to the interactions, behavioral

patterns and relationships that people have with other people. It is
the art of getting along with people, either as individuals or as a
group.
‘Human Relations’ is an integrated body of knowledge and

an interdisciplinary field comprising of reversal coherent physical
and social sciences. It is a term generally used for organizational
behavior.
From the management point of view ‘Human Relations ’is a

concept incorporating motivation of employees in an organization
and attainment of organizational goals.
‘Human Relations ‘are concern with the “why” factors of

the people and their groups. It encompasses the “what” factors as
to what can be done to anticipate, prevent or resolve conflict
among organizational members.
In other words, “The field of human relations is action

oriented, emplacing the analysis, prevention and resolution of
behavioral problems within organizations.“
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DEFINiTION OF “HUMAN RELATIONS”
Derek French and Heather Seward have defined ‘Human

Relations as:
“It is an approach to the theory of management and of

organizations that emphasis the individuals workers need for
satisfactory relationship with other members of his work group
and his need to participate in decisions that affect his work.”
According to McFarland, “Human Relations is the study

and practice of utilization human resources through knowledge
and through understanding of the activities, attitudes, sentiments
and interrelationships of people at work.”
According to Scott, “Human Relations are a process of an

effective motivation of individualsin a given stituation in orders to
achieve a balance of objectives which yield greater human
satisfaction and help accomplish company goals.”
The colloquial use of the term “human relations”, is

normally taken to mean being “nice“ to people; it is more
correctly used to denote interest in their work and group behavior,
which could in fact be emotionally neutral.
Keith Davis has describe the Human Relations approach as

an area of management practice in the integration of people into a
work situation in a way that motivates them to work together
productively, corporately and with economic, psychological and
social satisfaction.
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OBJECTIVES OF HUMAN RELATIONS
There are several objectives of maintaining smooth and

harmonious human relations in an organization. A human relations
program represent an attempt at improving employee moral and
motivation through improved communication and through
employee participation in the decision making process.
Cordial human relations are complementary to

humanization of business organization and it emphasizes the
“employee” aspects of work rather than the technical or
economical aspects.
Its objectives are listed below:
 Human relations approach improves employee morale and

job satisfaction. It increases employee efficiency and
reduces employee unrest.
 An understanding of the human relations approach assists

the managers to develop a better realization of how his own
attitudes and behavior play a part in everyday affairs.
 It facilitates organizational communication and solidarity

within the organization.
 It enables the manager it anticipates, resolve or prevent

problems in the organization which assist organizational
growth.
 Sound human relations improve relations between

management and between employers and employees.
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 It enables effectives working with others with an

understanding and sensitivity to others’ emotions,
aspirations and goals.
 Human Relations give importance to the most important

factor”Human Resource” and optimizes the competency of
this factor maximally.
Thus, the objectives of human relations recognized through

understanding of the separate contribution made by other
discipliners and the integration of that information into unified
whole. The other disciplinants includes psychology, sociology,
anthropology, political science etc. all of which directly and
indirectly affect human relations in an industry.
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NEED AND IMPORTANCE OF HUMAN

RELATIONS
The approach of human relations plays a significant role in

toast organizations.
The following aspects indicate the importance for human

relations:
 Maximum Utilization Of Manpower :
Of all physical and human resources, the human resources

are most important and the most valuable source of
production and basis for development. It is the human
resource that utilized other factors and sources of
production and thus its importance can never be
underestimated nor neglected. The Human Relations
approach enables judicious and concentrated focus upon
human resources, thus optimizing its potential in a “human”
manner. This contribution towards the overall growth and
productivity of the organization; is the goal of every
enterprise.
 Economic Goals :
The Human Relation approach motivates employees and

takes into consideration employee needs and goals. This
encourages employees to contribute effetely and
productively and with interest. Thus improves profit level
and marketability reputation and of organizations.
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 Psychological And Ethical Benefits :
Human resources are people with fillings, thoughts, goals,

problems of their own, aspirations, various conflicts and
expectations.
A Human Relations approach ministsters to these elements

of human resources and thus help to fulfill psychological
needs and ethical standards of respect and dignity of
employee s. this boost the morale of employees and enables
a motivated work-force to contribute maximally.
 Development Of Employees :
Human Relation approach focuses largely upon

development and training of employees to improvise their
communications, motivation levels capability with others,
team work etc; all of which mutually benefits the employees
and the organization.
 Development Of Industrial Humanism :
Human Relations Approach develops the “Humanity” factor

analysis and its benefits in an organisation thus making
industrial atmosphere more human and acceptable.
It can be thus observed that employees need and realization

of their importance in total productivity can never be
ignored if organizational goals of profits and growth to be
attained.
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SUGGESTIONS TO IMPROVE HUMAN

RELATION
The following steps and measures can be incorporated to

improve within and an industry:
 There should be recognition of the dignity of individual

employees and their personalities.
 The management must formulate and implement sound and

fair HRM policies of selection employee development,
compensation, promotions, transfers, Leadership and
supervision.
 Employee strengths and weakness must be considered and

accordingly trading must be imparted to them.
 Due recognisation must be given to group formation; self

managed teams and informal relations within the
organisation.
 There must be strong and well establishing channels of

communication within the organisation reducing scope for
any ambiguity and confusion.
 Role-clarity and clear grievanclhandling procedures must

prevail in organisation.
 Personnelcounselling and empowerment process must be

incorporated to give timely guidance appropriate
delegations for authority to employees.
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 Work ethics must prevail and there should be an atmosphere

of justice, fair play, honesty and transparency within the
organisation.
 A significant increase in the general educational level of

workers will increase their awareness and approach towards
management and peers.
 Work environment must be conductive and facilitate

greater specialization larger scope of operation which
required a greater degree of managerial effectiveness in
working with and through workers.
 Suggestion schemes, attendance awards, innovations

incentives must be introduced to respect and motivate
employees.
Thus it can be emphatically started at any efforts towards

improving human relations will improved employee and
management interactions and contribute towards industrial
harmony and well being.
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CHAPTER: 2
STRATEGIEES FOR BUILDING RELASHIONSHIP
Sustainable organizations strategies towards developing and

maintaining sustainable relationship differ from one organization
to another depending certain factors. These include nature of
business, its, its market share, nature of product type, volume of
sales geographic concentration, socio-economic status and life
style of the customers concerned, competitors strength, and so on.
 PEOPLE
People within the organization have the basic in developing

and maintaining relationship with customers. Every one in
the organization must realize the fact that their work is
towards satisfying customers. Everyone from the lowest to
the highest level irrespective of their functional
specialization and responsibilities must integrate their
activities towards one of the main objectives of the
organization- customer satisfaction.
 PROCESS
Process involves a logical sequence of activities right for

the need identification of potential customers to need
fulfillment. Need fulfillment requires manufacture of
product with desired attributes. The process has to be
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derived from the customers view point, which paves way

for total customer satisfaction. The performance of each
link must be objectively analyzed and corrected in tune with
the internal and external customer’s expectations.
 PRODUCT
The product offered must constantly provide value addition.

The expectation s of the customers may always be on the
increase due to various reasons. A customer satisfied with a
given product may soon become a dissatisfied customer in a
view of the changes takes place in his expectations go much
be yond physical tangible things. As an anonymous
commentator puts in:
 Do not offer me things.

 Do not offer me clothes, order me attractive look.
 Do not offer me shoes; offer me comfort and
pleasure of walking feet.
 Do not offer me book, offer me the benefit of
knowledge.
 Do not offer me things, offer me ideas, emotions,
feeling and benefits.
 Please do not offer me things.
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 ORGANISATION
In order to build customer relationship, an organization

should be aware of the technology advancements and
provide quality services in tune with the customer
satisfaction and respond to the requirements of the
customers faster than its competitors
 SETTING SATISFACTORILY SERVICE

STANDARD
A customer not only expects quality products but also

quality services. Organization is expected to render services
.organization is expected to render services in all there
phase’s viz. presales, during sale and after sales. during pre
sales when the customer develops expections,the
organization must ensure quality and availability of the
product in time. During sales, when the customer
experiences the sales process, the organization must provide
the customer an opportunity to inspire, and treat them with
courteous attentiveness, prompt reply etc. during after sales,
when the sales are finalized the organization must provide
supporting services such as speedy replacement, simplified
complaint procedure, efficient maintenance and repair
services and so on. Such services, which are provided
immediately and instantly, will bring total customer
satisfaction.
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 CONCENTRATION ON COMPETITORS
An organization must focus constant attention on the

competitor’s performance, their strategy and style of
operations and compare same with its own performance.
Customer always makes this comparison and decides their
future purchase pattern. Such analysis done by organization
would help in increasing its strengths and reducing its
weakness.
 CUSTOMER ANALYSIS
Customers referred here include the present customers

consuming the production of an organization also the
prospective customers must be periodically analyzed from
several perspectives such as who constitute the customer
inventory, level of customer retention, what makes them
buy, what their level of satisfactions, where they are placed
in then loyalty ladder, what makes them di9sloyal, and so
on.
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 COST ANALSSIS
An organization must focus attention on the cost of the

product or services. Always, there must be sincere attempts
towards cost reduction without compromising on quality.
The organization must perform value analysis and try to
reduce costs and retain the same good quality or improve
quality of product or service. This would elp to avoid
switching over of the customer to other brands.
 CONCENTRATION ON THE PAYING

ABILITY OF CUSTOMERS
Pricing decisions are to be governed not merely by cost

related factors. Before fixing price, the paying ability of the
potential customers must also be viewed. To some extent
prices are to be adjusted in tune with the fluctuations in the
paying ability of potential customers. In this process, an
organization may have to sacrifice small portions of the
profit tentatively. But, considering long term relationship
and future opportunity of earning, such price adjustment is
worth practicing. If customers were lost due to price factor
their nonavailibility of prices, then the organization would
have to invest heavily in trying to get them back but with no
guarantee for the same.
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 KNOWILDGE ON PURCHASE BEHAVIOUR

PATTERN
Organization should have a through knowledge of the

purchase behavior pattern of their customers. The
influencing factors of the purchaser decision process and
the ultimate outcome are o be analyzed in-debt. The
outcome of purchase decision may be any one of the four
viz. (1) Purchase, (2) Rejection, (3) Postponement, (4)
Search for substitutes.ganisation should have an idea about
what percentage of customers arrive at what sort of a
decision and appropriate steps arte to initiate towards
making them buy the products on a continued basis. With
regard to organization purchasing decisions, the key persons
influencing the decision, their characteristics and
expectation, etc. have to be understood in clear terms.
 DIFFERNCIATION IN PRICES AND QUALITY

STANDERS
An organization may come forward to offer services or

brands of different varieties with price variations. To keep a
particular need, three or four brands of varied quality and at
differing price level must be available so that, the customer
depending on his financial position may prefer at least one
of the varieties available. This would prevent the customers
from switching over to other brands.
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 FOCUS ON REDUCING DISSATISFACTION
Irrespective of the standard of s product or services offered

by an organization, it is likely that the customers would
reach a level of dissonance and seek for remedial actions.
An origination must be pro-active to such a situation.
Alldfissatisfied customers will not come forward to show
their displeasure. They may simply make a brand switch-
over. This will badly reflect on the prospective customer’s
attitude. To avoid this, the causes for dissatisfaction are to
be identified and have to be attended well. I of a complaint
is well attended, then the relationship would continue to
exist.
 ATTENTION ON CHANGING REQUIREMENTS OF

CUSTOMERS
The requirements of the customers are bound to change in

tune with the changes in their lives, demographic and
psychographi9c profiles and the related aspects, customers
up to a given point of time would concentrate on lift-life
enhancing needs. During these stages the customer’s
requirements in terms of the following parameters at every
point of time
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These parameters are:
1. Goals
2. Demand
3. Limitations
4. Options
5. Values and behavior.
Goals arte what the organization would like to reach and
what the customers would like to receive. The demands are
concerned with the pressure under which the organization
and the customer are. ‘Limitations’ are constraints on the
part of the organization and also on the part of the
customers. The parameter option relates to the alternatives
available to the organization as well as to the customers
concerned. ‘Values’ are the convinced standards accepted
both by the organization and the customers. ‘Behavior’ is
the they line of actions and relations by organizations and
customers.
 CONCENTRATION ON PERFORMANCE
Performance of each one in the chain of product/service

offering is to be continuously monitored and corrective
actions are to be initiated. This must be on a continuous
basis and there must be a separate team of members well
trained to evaluate the performance and I initiate corrective
actions.
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 TRAINING TO SUPPLY CHAIN

EMPLOYEES
Generation must become forward to offer state of the art

training to all those who are connected in the supply chain.
Every link in the supply chain is very important.
Unsatisfactory performance by anyone will destroy the
entree process of providing total satisfaction tom the
customers concerned. Training in the areas of customers
care, customer approach, body language of service
providers, customer communication, customer need
assessment, customer’s complaint management, etc. are to
be provided a smart service provider can obviously enhance
the level of customer satisfaction.
 INCENTIVISION SERVICE PROVIDERS
Suitable incentivizing schemes to be evolved by the

organizations and thereby the efforts of the service
providers are to be adequately compensated on a continuous
basis. This would act as a motivating force to take care of
both satisfied and dissatisfied customer. The incentives
scheme may be linked to the factors like number of
complaints handled effectively, number of customers
retained, number of new customers generated, number of
competitors, customers reached and coveted towards
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organization’s own brands, volume of sales made, and so

on. This attempt will encourage the service provider’s
towards forming relationship approach.
 DEVELOP PARTNERSHIP WITH CUSTOMERS
Partnership alliance would go as l;ong way in building

relationship with the customer. This type of a partnership
understanding may be in the form of buyback arrangements,
train9ing employees and extending managerial support to
the customer organizations and so on. The sort of a
partnership approach would crtfeate evidence for the care
and interest on the customer’s organization
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CHAPTER: 3
HUMAN RELATION IN INSURANCE

SECTOR
Humans depend on each other, they are continuously

influenced by their surrounding, their character is molded by those
around us and also their character influences the other individuals.
Any sector ahs complex relations among the customers and among
the top level and lower level management. Human nature demands
teamwork no human can live in a vacuum. Any field of activity be
it private, public, commercial sector is associated with human
relations and seek to emphasis human aspects of work life and
activities.
Human relation has been persuading and informing people
within the organization and outside to develop long lasting
relations which effectively fulfills the needs and interests of the
different groups and achieving the goals and objectives of the
organization. The scope of human relation is relevant for the
management of internal public as well as external public. it is
human relation with which both management,employees,and
related external public mutually cooperate to achieve their
respective objectives.
Insurance sector is a service sector and like any other sector
involves human relations from core to bottom. The relations are an
essential part of the sector and the entire sector based totally on
these relations and a flaw in any of these relation may result into a
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problem in other relation also as each of these relations are

interrelated. The relations are necessary because relations who
indicate either t5he sector is making profit or even if the sector has
to be in the existence. The relationship management is a key
element in maintaining these relations as and when only if the
relations are properly managed will they give results or be faithful
to the sector.
Insurance sector has basically the following relations in
itself, relation between Insurance Company and its employees, the
relation between insurance company and its customers, the
relation between employees of the company and the customer of
the company these are basically the main human relations that are
prudent in an insurance company. The relation can be expressed
with the following diagram showing the above mentioned
relations.
INSURANCE
COMPANY
EMPLOYEE CUSTOMER
S S
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As shown in the above diagram the modes of

relations among the relations have been brought forward.
The relation between Insurance Company and Employees:
There is a direct relation between the insurance company

and the employees of the company, the employees have to directly
face with the company management, also the company has to take
care of its employees and have to cater to their needs and
expectation and see that they are treated according to their work
and service provided by them. They are an essential part of the
organization as it is in their work delivery that the company makes
gains or faces losses.
The relation between employees of the company and the

customers:
The customer of any organization is the reason for the

business to be alive if the customers are not there is no necessity
for the organization to continue as it is an essentiality for the
company to maintain good customer relations so that they are able
to gain the confidence of the customer and employees re the
people who come face to face with the customers it is the
responsibility of the employees to create a good repo with the
customers so that there is development of faith for the company as
faith is everything in insurance business and no insurance
company can do business without faith.
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The relation between the customer and the insurance

company:
There is an indirect relation between the customer and the

insurance company because the company and the customer never
meet but the customer is the main reason of the company and the
company does respect its owe to take care that the customer has
his willful service and that they are not hurt in any way because
they are sole provider of business and the profits the insurance
sector earns.
The project is about the human relations in insurance sector
hence we focus on the relations in the insurance sector there are
two important relation in insurance sector ’CUSTOMER
RELATIONS’ and ‘EMPLOYEE RELATIONS’ these are two
basic relations which the insurance sector has within itself and
these are the two relations of the sector and the company has to
take care of these two relations as they provide business and profit
to the business and profit to the company. The employees are the
investments of the company and the customer are the returns of
the company.
To start off with we start with the customer’s relation and
then go on to the employee relations as the customers are the
essential part of the sector and also it is necessary we understand
the customer first and the people dealing with them.
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CHEAPTER: 4
CUSTOMER RELATIONS IN INSURANCE

SECTOR
Insurance of India has come a long way since liberalization

of the sector, three has been refreshing change. Opening of a
sector has increased the has stiffened the competition making it
necessary for the providers to the change their traditional method
of policy based sales structure to customized sales structure. An
industry which serves intangible goods or services needs to
understand and serve the customer by ever improving standard. In
a lecture G.N.Bajpai the chairman of LIC emphasized that the
growing importance of CRM will forced the companies to
transform CRM into value based Clint relationship. There is no
panacea for implementing CRM but by avoiding some common
pitfalls an enterprise can have world class CRM strategies and
accordingly more satisfied customers.
Customer Relationship Management or CRM as it is known

is basically about continuously improving the quality of
interaction and communication with new and existing customers.
Insurance providers traditionally concentrated on product creation,
with distribution and sales consider a different business focus and
therefore customer was not a key concern, but with the evaluation
of technology, customer are now demanding multiples channels
through which can interact with there providers including face to
face contract, phone, websites, empathy mobile device etc. the
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insurance company have been forced to explore new channels for

distributing so that the ordinary customer can achieve more
information about the insurance product.
A type insurance company has a huge customer base, varied

lines multiple distribution channels and a market spread across
geographies. To effectively interact with the customer and design
suitable products the insurer has to leverage a vast pool of data at
each steal in the CRM process and use the insight gained for
developing new products and services to meet the ever changing
needs of the customers.
There three basic steps for CRM in an insurance company they are
as follows:
Identifying the most potential customer :
Identifying the customers includes the following points:
 CUSTEOMER PROFITABILITY ANALYSIS:
Besides acquiring new customers, it is vital role of insures

to retain and increase the profitability of existing one. To
arrive at the overall profitability of the customer, insurers
must quantify the cost involved in serving the customer
over a period and the revenues realized from the customer
during the period. The results of customer profitability
analysis can point toward the reason behind why some
customers might be unprofitable because the product used
by them do not match their risk profile. Customer
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profitability analysis can signify help in developing new

products for a customer and customer segment.
 CUSTEOMER LIFETIME VALUE:
Customer profitability is not the sole measures of a

customer value to the insurance company. A customer may
have the potential of buying profitable products in the future
he may also serve as an excellent reference for more
profitable customers. Customer life time value is hence a
more insightful measure. Often data mining tools are used
to model customer lifetime value, taking into account all the
factors that have a bearing on the customers value over the
entire course of their relationship with the insurance
company.
 CUSTEOMER VALUE PROPOSITION:
Insurer must create better customer value packages, finance

option and going close to customer. They should reach a
new level of service by offering their customers the
information and services they want before they know what
they want before they even know what they want. They
should provide the customer more choices and fewer
reasons to turn to competitors.
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Understanding their needs and buying patterns:
The three factors that cater to this are,
 CUSTEOMER SEGMENTATION:
Segmentation is used to segregate customers, who exhibit
Common characteristics, in different segments. A customer

may have the potential buying profitable products in the
future; he may also serve as an excellent reference for more
profitable customers. Customer segmentation can save a lot
of marketing efforts, which would otherwise go waste.
Often data mining tools are used for segmenting the entire
customer base into clusters, identified on the basis of
various demographic and psychographic factors. It
segregates customers who exhibit common characteristics
in different segments. This segment can be treated as
distinct entities and the future interaction with them can be
tailored accordingly.
 ATTRTION ANALYSIS:
Studies have shown that across industries that acquiring

customer is more costly than retaining existing customers. It
involves analysis of fate captured during individual
customer contacts at the various touch points. Acquiring
new customer is much more costly than retaining the
existing ones. It costs much less to keep a current customer
than it does to attract a new one. Typically buying an
insurance product is along term for a customer and if he
decides to switch it is very likely that he will not come
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back. Hence retaining of customer is of paramount

importance, customer attraction analysis is the first in the
direction. It involves analysis is the first step of direction. It
involves analysis of data capture during individual customer
contract at the various touch points. For attrition analysis,
customer contact data est. is then associated with other data
source like claims and policies, the resultant dates set is
then associated with customer who have switched analyze
the possible reason behind this decision. The result can also
be used to improve the performance the customer touch
points.
 AFINITY ANALYSIS:
It is often referred to as market based analysis. Certain

products show an affinity towards each other and are like to
be bought tighter. For example a man in his early thirty is
who buys life insurance policy might also be interested in a
certain type of annuity. These affinities can be at times
extremely difficult to unearth and often data mining tools
are used for this purpose. These tools used a technique
called association analysis for arriving at the right
combination of products and service for a customer and
customer segment.
Interact with them so meet all their expectation:
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This involves the following;
 TARGET MARKETING:
Marketing to specific customer group is a natural outcome

of customer segmentation. Once distinct customer segments
are identified, BI tools can be used to study the products
likely to bought by the segment. Often data mining is used
to develop predictive models to establish the buying
prosperity of a segment towards various existing or new
products. Armed with this knowledge, marketing managers
can design specific campaigns targeted at individual
segment.
 CAMPAIGN ANALYSIS:
Campaign analysis is used to analyze the effectiveness of

marketing or promoting campaigns. The effects of a
particular campaign on sales of the promoted product can be
tracked using BI tools. Often the surge in sales of the
promoted can result in decrease in sale of other related
product. BI tools can also help identify such relationship.
The campaign data warehouse and can be predict the
effectiveness of similar campaigns in future.
 CROSS SELLING:
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It is major revenue for insurance companies. For effective

cross selling an insurance can leverage data housed in
warehouse to quickly zero down on the new products
housed that would be required by its existing customers.
These can then be offered to them during the next contract.
 CUSTOMER RESPONSE ANALYSIS:
It helps them in gaining a better understanding of their

customers’ needs so as to recognize preference and buying
patterns that allows them to build individual customer
solution across all of their business channels and division,
as well as to cross and up sell.
The above were the customer relation process followed by

the insurance companies now we look at the various
measures that the companies use to reach their customers in
order to complete their requirements from the company.
Following are the ways used by the insurance companies in
order to fulfill the necessity of the customers & to take care
of them their needs and to inform them about the facilities
available to them:
1. Public relation offices
2. Internet
3. Advertisements
4. Call center
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These are the four common method used by most of the

insurance companies for providing service to their customers. We
now look into details of these methods.
1.PUBLIC RELATIONS OFFICES:
These are offices were the customers can directly come face
to face with the trained and well qualified executives who are
present in for the reason of helping out the customers with their
problems they might face at any time. These are also there to help
the customers who are interested in taking the policies guiding
them with every information they required about the policies and
whom to contact where to get them any single information. They
are also useful for getting the information about the filling for the
forms and the required papers for getting the policies. These are
the people who responsible for getting all the doubts clear from
the mind of the customer and clear all single question so that the
customers do not feel cheated so disappointed with the company.
The office may be 24/7 or might have working hours but the
people working here always have to built a good rap orate for the
company in front of customer an see that the customer do not
leave their desk with a doubt on their minds as this can be a very
a bad thing for the company and in the heavily competitive
environment every single customers counts, the loss of a single
customer may prove vital to the company and they do not believe
in losing a single customer no matter how big or small they
might be. The executives are professional human relation who
offers the best service possible to the customers and to fulfill their
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requirements as and how they need. They have accessed to

measure part of information related to the policies and they are at
full power to accomplish the needs of the customer within a few
minutes according to their requests.
2. INERENET:
This is the word which has been joining two different parts
of the world together and everything you need can be found be
here and you don’t have to go anywhere at any place except your
computer. If everything is available on the internet why to keep
the insurance behind. Insurance company has been blamed of not
having expanded the internet facilities according to its potential
but the thing has changed and no insurance company has been left
behind in utilizing the internet facility to its use of attracting
customers and providing them with facilities they get through
other sectors through internet.
The insurance companies have used the internet in two

ways one is to keep the customer they have and secondly to attract
the new and potential customers. This has affected the insurance
business in a positive manner, the people have been drawn
towards the internet and insurance on internet possibly is one of
the major things that can be called as the favorites of the people
because the people of today have realized the essentiality if the
insurance in their life and access to insurance through internet is
possibly the best gift they could have as in today’s worlds every
person is busy and they didn’t have time even to sit and eat
properly and in such situation the people do feel a relief about the
availability of the insurance on the internet. The aim of the
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internet insurance is basically providing the customers with every

policy on the net and the choice of the person is based on the
requirement just like any other product the customer can choose
from the net and feel the form and within the matter of days the
agents are to keep your doorsteps for the documents and within a
week’s time you get the policy and you are insured. The internet
has the facility of providing information about the insurance
company that is the customers can get information regarding the
companies policies available, their branches in the area, the
history of the company, their sales etc. every details that are
required by the customers can be found on the internet and this
help the customers to realize what he wants and decide over his
decision as most of the information and data are provided to him
and the customer just has a click, as the insurance company say
insurance just at a click of your fingertip. Internet has provide a
large base for companies to enlarge their business overseas and
across continents as the internet has reached places where even
transportation reaches with difficulty. Through the internet
companies have been able to satisfy their customers as the
customers have been able to across every single detail of the
company and have been able to utilize the facility with the great
results in the working of the company. The results of the increased
business are the proof that internet do play an essential role in the
working of the company & expanding its business in the world.
The companies to have been roping in every possible

facility to increase the internet facility to the customer as they
realize the importance and feel that this is a knowledge investment
and is better than any other investment they make. The investment
32
is good because they feel that with the rise of internet facility there
will be an increase in the customer base and will result in the
increase of the business for the company and hence the investment
is a profile one because internet facility is here to stay and evolve
and there is no strong and increase its capacity of expanding and
having it work better for you and others as well as stronger the
base stronger is the top of any build.
2. ADVERTISEMENT:
33
They are one way in which the companies try to promote

their products. The insurance companies have been spending a
good portion of their earnings in the process of advertisement.
Advertisement was the first way of attracting customers’

towards the company, throughout has become a second option
today after internet the role of advertisement cannot be refused as
they have the importance till today. Even today they are the source
of selling the products to the customers as even today are the
things that are accessed by major portion of the public. The
various majors measures used are T.V, Radio, Newspapers, Hand
bills, Hoardings etc. they are still the required and essential form
of selling the products because every consumer has to go through
the hording and the ads that are aired on the T.V and radios. Even
if a person is too busy that are informed through the hand bills.
The measures are essential for the customers as they are the ones
for whom the ads are made. One of reason they are essential are
because the advertisement business is the one which will never go
away as they essential for any company or sector or even for the
channels, radio stations as they are the main resource of income.
They are also essential because they are a constant reminder of the
facility available to the customers and they are the ones who are
important to the company. There might be many cases when there
have been instances that a person might be thing of taking of
taking insurance and immediately he sees the ads of an insurance
company and decides to take the policy or he hears the ads on the
radio or the hand bill or the hoarding there are many ways. There
even might be a case that after seeing a
34
Ads the customer realizes his responsibility and takes the decision
of buying an insurance policy because he feels that the same could
happen to him. The ads are not only a way of showcase the policy
buy also to give information about the policies available and in a
way perform the duty of giving knowledge to the people about the
policies and their importance in the life of the people as the policy
are there to cover to risks that might be there in the unseen future
of the customer and in order to protect himself from today itself
ads provide the knowledge of making people think about their
safety and their families safety and ask them to avoided risk may
be not completely but at least at some extent. Ads have been there
for quite a while and want go until the products are gone from the
society so the age old technique of promotion and making people
realize about the product and their essentiality will take a long
time to be thrown out in the black and till that time the insurance
company will be providing vital information through
advertisement and the ads will continue to remind people about
the facilities available to them.
35
4.CALL CENTERS
A new way of providing service to the customer is Call

Centers they are a new based of service started with the main
purpose of providing help to the customers and providing them
with information they need.
What is Call Center?
A Call Center is a group of agents or automated voice

response units that support customer contact functions over the
telephone. They are assisted by computers. A call center must
anticipate and accommodate customers need by delivering the
right way with the right quality.
Features of call centers
 Contact Management
One of the important features of Call Center is to improve

the quality of customer service by providing information
instantly on the agents screen. Deliver prompt, refined and
knowledgeable service that does not required callers to
repeat their questions as they are rotted through the
organization. Maintain a database of all customer contract
people with details as part of knowledge base. This contract
management is one of the important features of call centers.
 Opportunity Management
Opportunity management include campaign management,

targeting efforts at a particular segment of contacts or
prospects, getting raw business for the existing customers
36
measures returns from campaign and media increase

revenues resulting from cross selling & up setting
opportunities, improving the reach of the company. This
opportunity is available in the call centers. To manage this
opportunities available to the employees of call centers.
Opportunity management is very important features of call
centers.
 Activity management
Stream line activities to tract from start to completion.

Reduce the reliance on show cumbersome paperwork.
Increase productivity either by reducing head counts or by
increasing the level of services without adding incremental
staff. Shorten the learning curve, reduce the amount of
agent training time required each time a new product or
service is offered, or when new computer or application
comes online. These activities are available to the
employees of call centers. The management of these
activities available is called as activity management which
is one of the features of call centers.
 Customer management
Customer management is one of the effective features of

call centers. To provide single contract point for any
customer query. Identify and track loyal customers, attract
new customers, nature and retain them for high profitability.
Is included in this feature of call center is known as
customer management which is a good features of call
center.
37
 Work flow management
Efficient enforcing of key business practices to increase

communication across the organization automation of
business process based on events. Facilitate complex
business function by providing the necessary automated
business workflow and message based routing and querying
functions. Work flow management has well defined system
for Escalations Assignments and Routing. This flow of
work is known as work flow management.
OBJECTIVES OF CALL CENTER
Following are the objectives of Call Center
 To offer high quality of customer service.
 Have contractual agreement.
 Quicker and more reliable response to requests.
 Consistence service.
 Increase communication with organization.
 Improve communication with organization.
 Improve customer satisfaction.
 Increase knowledge circulation.
 Increase employee productivity.
 Differentiate from competition.
38
Call centers are the essential part of today’s business as any

business sector has the necessity of having the centers at their
disposal customer have been utilizing the service efficiently and
the companies have increased their productivity level with the
utilization of these resources available. The insurance sector has a
special utilization for these resources as they help them attract
customers and also help to their existing customers. The call
center is a revolution in the market and also help the customers in
having a 24/7 usage of service from anywhere at any time to visit
the customer care centers at their working time they just have to
dial a number and their work is over within no time.
The second usage of these resources is to make aware to the

customers about the facilities available to them. The centers also
call upon the potential customers and give information about the
policies available and ask for their interest if there is for the
product available. If the customer shows response they provide the
customer with essential information about the policies and give
them the required information about the agents or about the
offices around the area they live or they desire if they wish to
personally meet the officers for any reason they wish.
The above wear the various ways with which insurance

companies try to produce their customers and try to bring in forth
every facility they can provide to the customers. But inspit of
these measures the customer relations in insurance companies face
some challenges in implementing the Customer Relation
Management they are as follows:
 CULTURE
39
The culture of the insurance industry hampers the

movement towards the CRM. Traditionally the insurance
sector has been resistant to changes in business or
technology. Insurer’s legacy information systems have
proven a major impediment to adopting technologies like
CRM.
 IDENTIFICATION OF CUSTOR POINT
Getting the information to the actual point of customer

contact, which varies from company to company, is one of
the major problems in implanting CRM. The relation with
customer is often scattered across layers. The sales models
within the industry can be classified into: agents, brokers,
and direct writers.
 TECHNOLOGY:
Many insurance companies still lack the technology and the

corporate approach needed to under their customers. Lack
of internal enterprise wide data integration has made it
exceedingly difficult to develop a comprehensive view of
customers. Many industrial changes will be required for
industry deployments to be successful. These changes
include updating administration systems, consolidating back
offices, integrating front end channels with back end
systems, moving customer information to front end
channels and dealing with data issues.
 CRM-BUY AND BUILD:
40
Enterprise must make crucial decisions as to whether they

should buy CRM solution from venders or to build the
system internally. Internal construction requires sufficient
IT resource with skill and expertise in various CRM areas,
time to complete the project and funding. These challenges
cause many small to midsize providers to turn to external
venders for the parts needed for CRM.
 CRM-COST OR REVEVUE:
This is a question that most enterprises ask, CRM solutions

have to prove their worth to the top users prior to making an
investment. But the measuring results of CRM process
when they know the results until they activate it. Therefore
insurers must clearly identify the purpose of the system
being implemented and conduct a thorough cost vs. benefit
analysis this will result in a better return on investment for
the company.
Even the challenges the insurance company have a soft

cushion to their customers as customers play a vital role in the
running of the insurance business.
This was about the customer relations in the insurance

company we now shift our focus on the second part of the project
that is the relation between Insurance company and the employee
of the company.
41
CHAPTER: 5
EMPLOYEE RELATION IN INSURANCE

COMPANY
42
Employees are the essential part of the internal organization

of any company they are the ones who have a major role in the
functioning of the company and in the day to day working of the
company. They are the ones who prepares the reports, they are the
ones who prepared accounts, they are the ones who do not major
share of work in an organization on company can complete even
a single deal without a presence of the presence of the employees
of the company. They play the role of making reports maintaining
them following orders etc. which might be easy for use to see but
just imagine what happens when one of them misses the work
even foe a single day there is a great havoc, it seems that the
company will lose its entire work deals everything wii be gone.
That the value of the employee’s even if they may be listening to
the scolding of the bosses no one can imagine a single day without
them.
Just like an institution the insurance company to has the

same workforce, they depend on their staff of people for various
reasons from documentations to selling of products all the work in
the company are done by the employees of the companies. The
employees are also the essential part in the working of the
company.
The employee’s relations in an insurance company are as

follows:
 Office Staff
43
 Agents
 Business Process Outsourcing ( BPO )
These are the major employees though the B.P.O s are not
the actual employees of the company that still are related to the
insurance company directly they are the new way of functioning
of the modern business hence they are included, also as the project
as these are the hottest working thing that has happened in the
insurance sector. Let us study in details the working of the
employee and company reaction.
44
OFFICE STAFF
They are the ones who are responsible for the daily working
of the company. They are the ones who are responsible to
maintain the records, to maintain the documents, they are the ones
who take care of the customer request their grievances’
everything, it is essential that they are well trained and well
qualified to handle the people they face no pressure while doing
their responsibilities.
The requirement of the staff employees have to be fulfilled

by the company order for them to give consistent performance.
The basic requirements for the staffs of a company or the
methods that are to be used by the company for the betterment of
the office staff include the following:
 TRAINING AND DEVELOPMENT
 PERFORMANCE APPRAISAL
 PROMOTIONS
The above are the few methods that the companies use let
us see in detail what actually happens in these methods and how
are they useful for the companies.
TRAINING AND DEVELOPMENT:
One of the methods of having a well trained workforce is to

have the members well trained and educated about their work so
that have the full idea of what they are suppose to do in their
work. Training is the method used in order to sharpen the
knowledge, skill and abilities of the employees in doing a
45
particular job. Training is basically role specific concern with with

those who are or will be performing certain job, chive successful
role behavior. Training is vocational in orientation and is given at
the workplace. An employee who has undergone training is
presumed to have had some formal education. Development refers
to those learning opportunities designed to help employee’s grow.
While training seeks to increase the knowledge and skills of the
individual for the current job, development has a broader scope
and aims at developing an individual in all respects. Development
seeks to enhance the capabilities, potential and creative insistence
of the managers. Training aims at achieve immediate gains for the
organization while development aims at achieving long term
needs of the workforce of a company and in order to achieve
desired results from the employees.
The benefits of having a training program are as followed:
 HIGHER PRODUCTIVITY AND PROFTS:
Training improves the knowledge and skills of employees

and hence leads to greater efficiency in the work place. The
more efficient an employee the higher will be the
production which in turn will contribute to greater for the
organization.
 OPTIMAL USE OF RESOURCES:
Well trained employees are able to make optimal use of the

available resources i.e. manpower, material, machinery and
capital. This helps and leads to higher job satisfaction.
46
 JOB SATISFACTION:
Employees who have received training know their job well

and a confident lot. This increases their work. Training
helps to improve safety standards at work
 REDUCE STRESS:
An employee who knows his job well is less likely to

experience stress. Besides training in stress and time
management enables the employees to cope with frustration
and tension at the work.
 Safety:
Training reduces errors and accidents on the job by making

the employees more competent and able at their work.
Training helps to improve safety standard at work.
 CAREER DEVELOPMENT:
Training prepares the employees for the higher position by

developing the necessary skills and attitudes. It improves
the organization. Training prepares the employees for
opportunity that will come during his carrier.
47
PERFORMANCE APPRISAL:
According to the Indian National Institute of Personal

management “Performance Appraisal is a technique of assessing,
as impartially as possible, the attributes, strengths, weakness
capacity and attitudes of individual employee in relation to his
job.”
Performance Appraisal is second step after the employee is

selected and is trained and has performed his duties. It can be
called the process by which the management can finds out how
well or how badly the employee is performing his job. It is
beneficial to both the employees as well as to the organization. It
is a kind of feed back to the employees, it enables them to
understand whether his work is satisfactory or not whether needs
any improvement in the performance. It will revel to the employee
his strength and weakness, enhancing his self confidence in some
areas and encouraging him to imp row his performance in other
areas. Every organization has a goal and Performance Appraisal
helps the management whether the employee has been performing
well and whether his contribution is contributing towards the
attainment of the organizational goal. Important management
decisions such as promotion, transfer, demotions, and raises in
salary training and so on are made on nth basis of Performance
Appraisal.
48
The major uses of Performance Appraisal are as follows:
 PERSONAL TRAINING:
Performance Appraisal provides information about the

employee’s strengths and weakness. Once the weakness is
understood whether be it in knowledge or skill it can be
rectified with the help of proper training and development.
 WAGE AND SALARY ADMINISTRATION:
Performance Appraisal is frequently used to determine the

salary raise to be given to the employee’s. Increase in pay is
often related to the employee’s job performance.
 PLACEMENTS:
Information obtained through performance appraisal is

useful in making placement decisions. Trainee employees
are appraised by exposing them to various tasks in the areas
of finance, marketing, accounting etc. on the basis of their
performance the trainees are placed in the field that they
performed the best.
 PROMOTIONS:
Performance Appraisal helps in identifying the better

performing employees. Thus performance appraisal is
useful in making promotional decisions.
 DISGHARGE:
Performance Appraisal provides evidence of inadequate job

performance by the employee. This information can used to
terminate order dismiss the employee from the job.
49
 JOB SATISFACTION:
A fair performance appraisal maintains employee initiative

and moral leading to greater job satisfaction.
 MAN POWER PLANNING:
Performance Appraisal helps in a human resource planned

by providing information regarding existing talent in the
organization and future human resource requirements of the
organization.
 VALADATION OF SELECTION PROCEDURE:
Organization use a number of tests for employee selection

such as interviews, applications blank etc. the determination
of the usefulness of these tests can be done by subsequent
performance of the employees
 FEEDBACK:
Performance Appraisal provides information of an

employee’s weakness or deficiencies in knowledge, skills
and abilities that one’s identified can be corrected through
additional training. Performances Appraisal can also be
used to determine the usefulness of the training program by
determine whether an employee’s job performance
improved after training period.
50
PROMOTIONS:
Promotions are the upward movement of an employee in the
organizations hierarchy to another job commanding more
authority, higher status and better working conditions.
According to Scott and Clothier “a promotion is a transfer

of an employee to a job which pays more money one that carries
some preferred status.”
Generally if we speak when an employee gets assignment at

higher level job with more payment and powers he is said to be
promoted. Promotion is given on the basis of Seniority, Merit and
Seniority and Merit.
OBJECTIVES OF PROMOTION:
 It serves to be incentives to the employees and take an initiative to

be more enterprising and ambitious.
 It is recognition of the efficiency of an employee and his

performance.
 It boosts employee morale and creates a sense of belongingness to

the organization.
 It enhances employee commitment and loyalty.
 It results in job satisfaction for the employee.
 It creates a competitive environment among the employees.
51
AGENTS:
In order to carry out the business of the insurance company
needs individuals who can represent the organization and get
business for it. Only for this purpose there are agents who
represent the company and sell their products and them. They are
otherwise also known as the “Principal”.
According to insurance act 1938 an agent licensed under

Section 42 of the act, who receives or agrees to receive payments
by way of commission or other procuring insurance business
including business relating to continuance, renewal or revival of
policies of insurance.
They are the ones who bring about the major business for
the insurance company. But who are they what are the
requirements this we focus on in this sections of the projects.
The agents become an agent only when he completes the

requirements of the Insurance Regulatory and Development
Authority or as it is well known as IRDA.
Following some of the prerequisites required for becoming

an insurance agents:
 The individual should be minimum 18 years of age.
 He should have passed minimum 12th standard, if he is appointed

in a population of more than 5000 other vise he may just be 10th
passed.
 The individual should have undergone a practices training for at

least 100 hours in either life or general insurance as the case may
be and 150 hours in case of composite agent.
 The individual should have passed the per-requirement

examination conducted by the Insurance Institute of India.
 The individual should have passed the pre requirement

examination conducted by the Insurance Institute of India.
52
These wear some of the pre requisites of the agent training

now we see at the training requirements of the products.
The practical training given to an insurance agent is aimed

at the following points:
 COMPLETE KNOWLEDGE OF PRODUCTS:
It is an essential for an individual’s to have complete

information of all the products he will be selling to the
customer or to the prospective policy holder. Failure in an
explaining the products and their benefits can lead to losing
prospects.
 IMPORTANCE OF PER SALE SERVICE:
In other words the individual needs to find the prospects

and gradual developing the person into a fall fledged
customer. This is also known as nurturing the prospects by
eliminating his fears regarding the service.
 IMPORTANCE OF POST SALE SERVICE:
In selling a product or a service, post sale services is the

most important step as it leads to further business. In other
words the customer should be highly satisfied with the
agent in order to give him further reference which can be
developed into business. One satisfied customer can fetch
five more customers.
 DEVELPO INTO EFFICIENT SALES PERSON:
This includes he entries sales process right from searching a

prospect to finally closing the sales. The process is quite
detailed and methodical and the entire process is a detailed
work and is essential to make a good agent.
 INSTILL ETHICAL CODE:
This relate to dos and don’ts that an agent has to follow

during his entire profession and should be made aware of
53
the consequences, if any case, the agent defers from the

code.
 INCLUDE CONFIDENCE:
The most important element of this entire training process is

to inculcate a concrete confidence, so that the agent can
handle the most difficult situation with extreme ease and to
withstand the rigors of the selling profession.
The above mentioned training have to be provided by the

insurance company to their agents the required person is selected
and the training is provided by the company and agent is ready for
the work.
Though the agents are like the salesman they have greater
value and it is essential that they are equally treated. The agents
have to be given the priority because only if they are boosted with
confidence will they are able to bring in the results and prove to be
an assts to the company just as an employees have to be motivated
the agents have to be motivated as they too are humans. The
companies have found different ways of motivating there agents
they included giving them, gifts applauding their efforts, some of
the companies even send their well deserved agents to outside
countries for holidays. These all helps in motivating the agents
and they put in extra efforts to bring business to the company.
Though there may be a small amount of investments by the
companies the end is also huge with the increase in the business of
the company. Agents have a vital role to play in the companies as
no matter how many competitions there might be a good agent
always brings in the market the companies should have a well
organized and motivated set of agents working for them.
54
BUSINESS PROCESS OUTSOURCING (B.P.O)
What is B.P.O?
In generic terms core business is the process which is

central to a company’s operations that inject value to its
stakeholders in the business. These are the process which has been
identified by the business strategic thinking as critical to excel
meet or beat the completion. Being driven by this philosophy
companies during the early 90s paid greater attention to business
process reengineering and in the process figured out that they
wear spending a fat lot of time in maintaining support and
management process that could as well be had from companies for
whom it was the core business and that too at a much lesser cost.
This is how BPO came onto existence.
BPO is nothing but transferring selected functions or

services and delegating day to day management responsibility to a
third party called the supplier. Outsourcing is a long term
commitment to another company delivering a service to the
outsourcing company. It amounts to the transfer of its internal
operations, include ding perhaps, its existing staff, to company
suppling the out sources services. Greater trust is therefore needed
to achieve success in an outsourcing engagement else the
customer is likely to be affected that too permanently by any
failure on the part of supplier. In short ‘True Partnership’ is the
fulcrum on which the success of outsourcing rests.
The following can be outsourced from the insurance

company:
 E-business enabled transaction processing.
 Back office operations like policy and contract administration ,

billing and payment processing, print distribution and electronic
archive, reporting, compliance, financial management
 New product, company or subsidy launch
55
 Distribution channel management
 Reinsurance
 System and infrastructure management
 Loan servicing
Here are some of the reasons why the insurance companies

should look to outsourcing:
 Shrinking margins-in In order to strengthen their margin

level, functions may be outsourced so that the overall expenses’
are reduced.
 New way of conducting business like e-business in which
the insurance company may not process enough strength.
 Need for strengthening one core competencies and as result,
outsource non-core functions.
 Driving a line between direct customers related business
and other like HR training act.
Outsourcing has become the trend of today’s business all

major sectors have outsource their business and insurance sector
to is one of them. These is an easy and cheaper method of
conducting the business and it also allows the company in
concentrating on its core function as for insurance it is selling of
insurance. They do have form an essential part of the sector and
this is because of the busy schedule and the expenses incurred
they are not under the company but they are in a way working for
the company.
CHAPTER: 6
56
CONCLUSION
Human relations are the essential part of any organization or

sector that is working in today’s globalizing world. The
essentiality has been understood by the organization and they have
taken measures to use these relations in their favor. The
organization invest a lot in the human resource development and
this is one of the investment they believe to be profitable and no
matter how much the company invest they do receive equal
amount of return.
After the project there is a strong feeling in m that

companies have thoroughly understood the reasons of success life
within their relation. Their relation has been increased and they
believe that they can make a different with these relations. The
most important part is that they are really helping the growth of
the company. Relation mentioned is the relations between the
customer and the company and the relation between the
employees of the company and the company. The impact of
globalization has had a lot of effect on the relations because of the
increasing competitive nature of the business. At such point of
time the companies look to have every advantage they can have
and human relations provide them with these advantages.
The customer relation management is the core of such

management because they are the reason for any business to
survive and to continue making profit with a good customer base
the companies can make profits and earn the respect of the
customers which can be essential for business toll and even for the
57
future they are essential because they are the end users and the
various measures use by the companies are a step taken by a
company in getting a new business hence every satisfies customer
in the future business for the customer.
In having a good customer relation it is essential that they

have a good employee base hence employee relations comes into
focus the employees are representatives of the company and hence
it is essential that they have all the essential training the required
necessity of handling individuals etc; it is essential that these
employees get the required motivation and the rewards for their
accomplishments. This is necessary because they are the ones who
decide the business of the companies and hence they have to be
well motivated and they should be enjoying the work they do and
should not do under the pressure of doing their work. Companies
have taken measures and I personally feel that they are doing fine
job with it humans are the essentially no matter how advanced
technology can be created nothing can change the human factors.
58
BIBLOGRAPHY
Websites
 www.irdwwwaindia.org
 www.imf.com
 www.licindia.com
 www.Mckinsey Quarterly.com
 www.wikipedia.com
 www.google.com
BOOKS/JOURNALS/BULLETINS
 principles of human relation
 CRM-A Step By Step Approach
 Human Resources In Banking and Insurance
 Insurance management
 Human Recourse Management &Human Relations
59

Human Relation Management in Insurance Company

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HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

‘Human Relations ‘refers to the interactions, behavioral

‘Human Relations’ is an integrated body of knowledge and

From the management point of view ‘Human Relations ’is a

‘Human Relations ‘are concern with the “why” factors of

In other words, “The field of human relations is action

DEFINiTION OF “HUMAN RELATIONS”

Derek French and Heather Seward have defined ‘Human

“It is an approach to the theory of management and of

According to McFarland, “Human Relations is the study

According to Scott, “Human Relations are a process of an

The colloquial use of the term “human relations”, is

Keith Davis has describe the Human Relations approach as

OBJECTIVES OF HUMAN RELATIONS

There are several objectives of maintaining smooth and

Cordial human relations are complementary to

Its objectives are listed below:

 Human relations approach improves employee morale and

 An understanding of the human relations approach assists

 It facilitates organizational communication and solidarity

 It enables the manager it anticipates, resolve or prevent

 Sound human relations improve relations between

 It enables effectives working with others with an

 Human Relations give importance to the most important

Thus, the objectives of human relations recognized through

NEED AND IMPORTANCE OF HUMAN

The approach of human relations plays a significant role in

The following aspects indicate the importance for human

 Maximum Utilization Of Manpower :

Of all physical and human resources, the human resources

The Human Relation approach motivates employees and

 Psychological And Ethical Benefits :

Human resources are people with fillings, thoughts, goals,

A Human Relations approach ministsters to these elements

Human Relation approach focuses largely upon

 Development Of Industrial Humanism :

Human Relations Approach develops the “Humanity” factor

It can be thus observed that employees need and realization

SUGGESTIONS TO IMPROVE HUMAN

The following steps and measures can be incorporated to

 There should be recognition of the dignity of individual

 The management must formulate and implement sound and

 Employee strengths and weakness must be considered and

 Due recognisation must be given to group formation; self

 There must be strong and well establishing channels of

 Role-clarity and clear grievanclhandling procedures must

 Personnelcounselling and empowerment process must be

 Work ethics must prevail and there should be an atmosphere

 A significant increase in the general educational level of

 Work environment must be conductive and facilitate

 Suggestion schemes, attendance awards, innovations

Thus it can be emphatically started at any efforts towards

Sustainable organizations strategies towards developing and

People within the organization have the basic in developing

Process involves a logical sequence of activities right for

derived from the customers view point, which paves way

The product offered must constantly provide value addition.

 Do not offer me things.

In order to build customer relationship, an organization

 SETTING SATISFACTORILY SERVICE

A customer not only expects quality products but also

An organization must focus constant attention on the