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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 factorHuman 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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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, supervision. promotions, transfers, Leadership and

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 employees.

schemes,

attendance

awards,

innovations

incentives must be introduced to respect and motivate

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.

HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 customers 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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HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 STANDARD

SATISFACTORILY

SERVICE

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 phases viz. presales, during sale and after sales. during pre sales product when the customer develops expections,the organization must ensure quality and availability of the 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 competitors 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 ABILITY OF CUSTOMERS

ON

THE PAYING

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 switchover. This will badly reflect on the prospective customers 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 customers 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, customers 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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organizations own brands, volume of sales made, and so on. This attempt will encourage the service providers 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 customers 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 S

CUSTOMER S

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HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 customers 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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HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 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: achieve more

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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HUMAN RELATION MANAGEMENT IN INSURANCE COMPANY

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 dont 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 todays worlds every person is busy and they didnt 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 weeks 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

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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:

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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

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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.

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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

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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.
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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.
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Call centers are the essential part of todays 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

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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. Insurers 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:

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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.

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CHAPTER: 5 EMPLOYEE RELATION IN INSURANCE COMPANY

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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 employees 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 employees relations in an insurance company are as follows: Office Staff

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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.

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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 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 a company or the methods that are to be used by the company for the betterment of

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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 employees 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.

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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.

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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.

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The major uses of Performance Appraisal are as follows: PERSONAL TRAINING: Performance Appraisal provides information about the employees 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 employees. Increase in pay is often related to the employees 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.

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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 employees weakness or deficiencies in knowledge, skills and abilities that ones 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 employees job performance improved after training period.

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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.

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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.

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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 individuals 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 donts that an agent has to follow during his entire profession and should be made aware of

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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.

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BUSINESS PROCESS OUTSOURCING (B.P.O)

What is B.P.O? In generic terms core business is the process which is central to a companys 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

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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 todays 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
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CONCLUSION

Human relations are the essential part of any organization or sector that is working in todays 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

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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.

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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

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