BHAGYESH MACHHINDRA DONGARE. TYBMS . DIV- A . ROLL NO-36. SUB- HUMAN RESOURCES GUIDE- ARTI SHARMA. VIVA COLLEGE.

MANAGEMENT IN INSURANCE SECTOR.

EXECUTIVE SUMMARY "If you want 10 days of happiness, !ow !ain" If you want 10 yea!s of happiness, !ow a t!ee" If you want 100 yea!s of happiness, !ow peop#e""

$%&ECTIVE $' T(E STU)Y The pheno*ena# e+pansion of insu!an,e se,to!- The major insurance companies in our country have expanded their branches phenomally in the last few decades. Also, many new insurance companies are being established all over the country. The objective of the study is therefore, to examine the insurance companies, their functioning and asses their viability. IM.$RTA/CE $' T(E STU)Y

The need to *a0e p!ofitscommercial organization.

Profits are essential for the survival and growth of every

In,!easin e*phasis on p!ofita1i#ity- The profitability aspect of the insurance companies has gotten a lot of attention in the recent years. E*p#oyee satisfa,tion- Along with the increasing emphasis on profitability, employee satisfaction has also been generating considerable interest. This study has thus been undertaken to examine the importance human resource management in insurance companies.

(Y.$T(ESIS STAEME/T Investments in HRM practices can help a firm perform better.

I/TR$)UCTI$/ ompetitive advantage of a company can be generated from human resources !"#$ and company performance is influenced by a set of effective "#% practices. &n this study, we intended to assess the "# practices in insurance companies 'very organization is composed of people and utilizing their services, developing their skills, motivating them to enhance their levels of performance and ensuring that they remain committed to the organization are essential for the accomplishment of organizational objectives. This is true for all types of organizations ( government, business, education, health, recreation or social action. )rganizations that can do this will be both effective as well as efficient. &nefficient or ineffective organizations face the danger of stagnating or going out of business. The emphasis on proper and effective human resource management has increased in the recent

times. &t has come to be identified as an important factor in the successful management of an organization. *ith the growing importance of knowledge workers to organizations and the rising expectations of employees, it is essential to have a good human resource management system in place. Human Resource Management !"#%$ consists essentially of four functions + ac,uiring, developing, motivating and retaining human resources. The ac,uisition function starts with planning for the number and categories of employees re,uired, and end with staffing. The development function has three dimensions + employee training, management development, and career development. The motivation function includes identifying the individual motivational needs of employees and finding ways to motivate them. The retention function is concerned with providing a work environment conducive to the employees and nurturing them to make them feel committed and attached to the organization. "uman resources are the most valuable and uni,ue assets of an organization. The successful management of an organization-s human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. 'ven though specific human resource functions.activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. &t is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. "uman #esource %anagement outlines the importance of "#% and its different functions in an organization. &t examines the various "# processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization.

The insurance sector employers are indulging into aggressive recruitments. *ith around /0 million new policies being sold every year, the insurance sector is picking up fast in &ndia. 1ue to its robust growth there is a need of skilled professionals in the sector. The employers are looking forward to hire fresher2s at junior levels as they are ,uite flexible and ready to work as part time employees as well. Apart from hiring actuaries and underwriters, the industry is focusing on hiring agents. These agents represent the front end of the customer chain and are responsible for bringing in new business.

I/SURA/CE SECT$R- A/ I/TR$SUCTI$/ Insu!an,e is a form of risk management primarily used to hedge against the risk of a contingent loss. &nsurance is defined as the e,uitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insu!e! is a company selling the insurance3 an insu!ed or po#i,yho#de! is the person or entity buying the insurance. The insu!an,e !ate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the p!e*iu*. The si+ p!in,ip#es of insurance are4
1. Inde*nity + &nsurance is a contract of indemnity where the insurance company

indemnifies the insured against certain risks for a consideration known as premium.
2. Insu!a1#e inte!est + means the loss of which will directly affect the insured. 3. Ut*ost ood faith + means that the insured and the insurance company will not willfully

hide anything from each other.

4. Miti ation + means the insured will not behave irresponsibly and will take due care so

that the risk of loss or the loss is minimized.

5. Su1!o ation + means the insurance company ac,uires legal rights to act on behalf of the

insured i.e. the insurance company steps into the shoes of the insured.
6. Causa .!o+i*a o! .!o+i*ate Cause + means the proximate cause of loss to ascertain

whether the loss is covered under the policy.

(IST$RY $' I/SURA/CE SECT$R I/ I/)IA The history of &nsurance in &ndia started with life insurance in /5/5 when it was conceived as a means to provide for 'nglish *idows. &nterestingly in those days a higher premium was charged for &ndian lives than the non(&ndian lives as &ndian lives were considered more risky for the coverage. The 6ombay %utual 7ife &nsurance 8ociety started its business in /59:. &t was the first company to charge same premium for both &ndian and non(&ndian lives. The )riental Assurance ompany was established in /55:. The ;eneral &nsurance 6usiness in &ndia, on the other hand, can trace its roots to the Triton !Tital$ &nsurance company established in the year /50: in ompany 7imited, the first general insurance alcutta by the 6ritish. Till the end of nineteenth

century insurance business was almost entirely in the hands of overseas companies. &nsurance regulation formally began in &ndia with the passing of the 7ife &nsurance ompanies Act of /</= and the provident fund Act of /</=. 8everal frauds during /<=:-s and /<>:-s sullied insurance business in &ndia. 6y /<>5 there were /9? insurance companies. The first comprehensive legislation was introduced with the &nsurance Act of /<>5 that provided strict 8tate ontrol over insurance business. The insurance business grew at a faster pace after independence. &ndian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.

I/SURA/CE &$% )ESCRI.TI$/ The insurance job description which is generally assigned to people working in the insurance industry is given below4

To han !" a!! #h" a$$a%&' o$ #h" ()'#o*"& &"!a#" #o #h" +o!%(%"' o& #h" '"&,%("' o$$"&" -. #h" %n')&an(" (o*+an. an #o &"'o!," an. (on$!%(#' a&%'%n/ %$ an..

To work for insurance company or several insurance companies and finding clients in order to create awareness about the insurance policies that the insurance company has to offer.

The job responsibility may include finding out if the claim made by the client for insurance cover warrantees insurance or not. To investigate whether all the premiums were paid on time and whether the claim made falls in the particular insurance policy. To meet potential customers and sell them the insurance policies being offered by the insurance company.

Co*peten,ies !e2ui!ed fo! 3o1 in insu!an,e Any &nsurance job seeker must possess the following set of skills4

.u1#i, Spea0in 4 A good insurance professional should have strong communication as well as public speaking skills. Co*pute! 0now#ed e4 6asic knowledge of computers including %icrosoft *ord, *ordPerfect, )utlook, 'xcel, PowerPoint, Tally etc would prove to be an asset. .eop#e s0i##s- An &nsurance professional should be able to communicate as well as interact with other working professional including colleagues as well as clients of the company.

$! anisationa# s0i##s4 As an insurance job includes organizing work it is necessary to have good skills in this department.

(UMA/ RES$URCE MA/A4EME/T- A/ I/TR$)UCTI$/

@"uman resource management !"#%$ is planning personnel needs3 recruiting, selecting, training, and developing capable employees3 placing them in productive work environments3 and rewarding their performance. @ Thus, human resource management refers to a set of programmes, functions and activities designed and carried out to maximize both, employee as well as organizational effectiveness. &t is concerned with the people dimensions in the management. 8ince every organization is made up of people, ac,uiring their services developing their skills motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization (government, business, education, health, recreation or social actions.

"uman resource is one of the natural resources of any country-s economy. &t is the wealth of the country. &n the context of banking, human resource is of greater importance. The deployment of human resource through proper and efficient selection, training and development, is called "uman #esource %anagement. The success of any organization largely depends on efficient human resource management, apart from operations, marketing and sales, the "# department manages all the efficient people working in operations and marketing divisions in any organization. Thus, "#% refers to a set of programmes, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness. "uman resource management is based on four fundamental p!in,ip#es/. "uman resources are the most important assets important assets an organization has and their effective management is the key to its success. =. )rganizational success is most likely to be achieved if the personnel policies and procedures are closely linked to corporate and strategic plans.

>. )rganizational culture, values and climate significantly influence managerial behavior and exert a major influence on the achievement of excellence. "ence, continuous effort is needed starting from the management in order to make the organisational culture acceptable. A. "uman resource management is concerned with integrating all members of the organization involved and working together with a sense of common purpose.

An organization is driven by human capital and the ,uality and effectiveness of the organization is determined by the ,uality of the people that are employed. The resources of men money

material and machine are collected and coordinated through people. *ithout people organization can not exist. 8uccess for most organizations depends on finding the employees with the skills to successfully perform the tasks re,uired to attain the company2s strategic goals. %anagement decisions and processes for dealing with employees are critical to ensure that the organization gets and keeps the right staff. "#% may be defined as a set of policies practices and programs designed to maximize both personal and organizational goals and the process of binding people and organizations together so that the objectives of the each are achieved.

8ome definitions of "#% are as follows @"#% is the management function that is concerned with getting, training, motivating and keeping competent employees.B @"#% is a most advanced approach in the field of resource mgmt. talks about optimal utilization of human capital. The approach is integrative and supportive.B @"#% does talk about the cultivation of a skillful environment in which people or employee associate are able to extract their highest potential.B "#% deals with the day to day operations of the human resources department. This curriculum would include business law, compensation, employee relations, benefits, and medical etc. "uman #esource %anagement !C"#%C$ is a way of management that links people(related activities to the strategy of a business or organization. "#% is often referred to as Cstrategic "#%C. &t has several goals4 To meet the needs of the business and management !rather than just serve the interests of employees$3

To link human resource strategies . policies to the business goals and objectives3 To find ways for human resources to Cadd valueC to a business3 To help a business gain the commitment of employees to its values, goals and objectives

$%&ECTIVES $' (RM /. S$CIETA56 To be ethically and socially responsible to the needs and challenges of the society. =. $R4A/I7ATI$/A5(To bring organizational effectiveness and serve other departments. >. 'U/CTI$/A56 To do the optimal utilization of the resources and respond to the need of the organization. A. .ERS$/A5(To assist employees in achieving their personal goals to motivate and retain them thereby, enhancing the individual2s contribution to the organization.

)E'I/ITI$/ $' (R) "#1 1'A78 *&T" 1'D7)P%'ET F GP;#A1AT&)E )H "G%AE AP&TA7 !'I8&8T&E; %AE P)*'#28 GP;#A1AT&)E &E AE )#;AE&8AT&)E$.&T &8 A 7)E; T'#% P#) '88. "#1 can be defined as JA Set of syste*ati, and p#anned a,ti8ities desi ned 1y an o! ani9ation, to p!o8ide its *e*1e!s with the ne,essa!y s0i##s to *eet ,u!!ent and futu!e 3o1 de*ands:" &t is a part of "#%. Thus, "uman #esource 1evelopment deals with the training and the developmental aspect of employees.

(RM I/ I/SURA/CE Gnder present market forces and strict competition, the insurance companies are forced to be competitive. ontemporary companies must seek ways to become more efficient, productive, flexible and innovative, under constant pressure to improve results. The traditional ways of gaining competitive advantage have to be supplemented with organizational capability i. e. the firm2s ability to manage people. )rganizational capability relates to hiring and retaining competent employees and developing competencies through effective human resource management practices. &ndeed, developing a talented workforce is essential to sustainable competitive advantage. "igh performance work practices provide a number of important sources of enhanced organizational performance. "# systems have important, practical impacts on the survival and financial performance of firms, and on the productivity and ,uality of work life of the people in them. $13e,ti8es and I*po!tan,e of the Study 7iberalization in the &ndian insurance sector has opened the sector to private competition. The insurance industry forms an integral part of the global financial market, with insurance companies being significant institutional investors. &n recent decades, the insurance sector, like other financial services, has grown in economic importance. A number of foreign insurance companies have set up representative offices in &ndia and have also tied up with various asset management companies.

All these developments have forced the insurance companies to be competitive. *hat makes a firm best is not just technology, bright ideas, masterly strategy or the use of tools, but also the fact that the best firms are better organized to meet the needs of their people, to attract better people who are more motivated to do a superior job. &n this manner the management of human resources becomes very crucial. Thus, this study on "#% practices in insurance companies was taken up.

'U/CTI$/S $' (RM I/ I/SURA/CE "#% consist of several interrelated functions. These functions are common to all organization.

/.$ (u*an Resou!,e .#annin ;eorge 6ernard 8haw said4 Jto be in hell is to drift3 to be in heaven is to stee!:.

Human resource planning has traditionally been used by organizations to ensure that the right person is in the right job at the right time. Human resource planning can be defined as the process by which management determines how the organization should move from its current manpower position to its desired position. Through planning, management strives to have the right number and the right kinds of people, at the right places, at the right time, doing things which result in both the organization and the individual receiving maximum long(run benefits. 'a,to!s Unde!#yin In,!eased Inte!est in (u*an Resou!,e .#annin Gndoubtedly, there are many factors that account for the increased attention directed to human resource planning, but environmental forces(globalization, new technologies, economic conditions, and a changing work force seem particularly potent. These create complexity and uncertainty for organizations. Gncertainty can interfere with efficient operations, so organizations typically attempt to reduce its impact3 formal planning is one common tactic used by organizations to buffer themselves from environmental uncertainty.

The .!o,ess of (u*an Resou!,e Mana e*ent .#annin The human resource planning process, demands the "# manager to first understand the business re,uirement. )nly if he comprehends the nature and scope of the business, will he be able to employ those who will deliver the re,uired performance. *hen it comes to engaging the manpower, the manager should have a keen eye for spotting the talent. &t ensures that the workforce is competent enough the meet the targets. Additionally, the existing -talent pool- in the workplace should be taken into consideration, so that people with complimentary skills can be employed. The functions of the "# manager are varied3 he has to assess the currently employed workforce and their shortcomings. &dentifying these shortcomings goes a long way in choosing an efficient workforce. "uman resource planning process, thus, can be considered as one of the strategic steps for building the strong foundation of an efficient workforce in an organization

STE.S I/ (UMA/ RES$URCE MA/A4EME/T .5A//I/4

1" )ete!*inin the nu*1e!s to 1e e*p#oyed at a new #o,ation &f organisations overdo the size of their workforce it will carry surplus or underutilised staff. Alternatively, if the opposite misjudgment is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the ,uality level expected. 8o the ,uestions we ask are4

"ow can output be improved your through understanding the interrelation between productivity, work organisation and technological developmentK *hat does this mean for staff numbersK

*hat techni,ues can be used to establish workforce re,uirementsK "ave more flexible work arrangements been consideredK "ow are the staffs you need to be ac,uiredK

The principles can be applied to any exercise to define workforce re,uirements, whether it be a business start(up, a relocation, or the opening of new factory or office.

;" Retainin you! hi h#y s0i##ed staff &ssues about retention may not have been to the fore in recent years, but all it needs is for organisations to lose key staff to realise that an understanding of the pattern of resignation is needed. Thus organisations should4

monitor the extent of resignation discover the reasons for it establish what it is costing the organisation compare loss rates with other similar organisations.

*ithout this understanding, management may be unaware of how many good ,uality staff is being lost. This will cost the organisation directly through the bill for separation, recruitment and induction, but also through a loss of long(term capability. "aving understood the nature and extent of resignation steps can be taken to rectify the situation. These may be relatively cheap and simple solutions once the reasons for the departure of employees have been identified. 6ut it will depend on whether the problem is peculiar to your own organisation, and whether it is concentrated in particular groups !e.g. by age, gender, grade or skill$.

<" Mana in an effe,ti8e downsi9in p!o !a**e This is an all too common issue for managers. "ow is the workforce to be cut painlessly, while at the same time protecting the long(term interests of the organisationK A ,uestion made all the harder by the time pressures management is under, both because of business necessities and employee anxieties. "#P helps by considering4

the sort of workforce envisaged at the end of the exercise the pros and cons of the different routes to get there how the nature and extent of wastage will change during the run(down the utility of retraining, redeployment and transfers what the appropriate recruitment levels might be.

8uch an analysis can be presented to senior managers so that the cost benefit of various methods of reduction can be assessed, and the time taken to meet targets established. &f instead the ') announces on day one that there will be no compulsory redundancies and voluntary severance is open to all staff, the danger is that an unbalanced workforce will result, reflecting the take(up of the severance offer. &t is often difficult and expensive to replace lost ,uality and experience.

=" >he!e wi## the ne+t ene!ation of *ana e!s ,o*e f!o*? %any senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. 6ut they recognise that while this may have dealt with a short(term skills shortage, it has not solved the longer term ,uestion of managerial supply4 what sort, how many, and where will they come fromK To address these ,uestions you need to understand4

the present career system !including patterns of promotion and movement, of recruitment and wastage$

the characteristics of those who currently occupy senior positions the organisation2s future supply of talent.

This then can be compared with future re,uirements, in number and type. These will of course be affected by internal structural changes and external business or political changes. omparing your current supply to this revised demand will show surpluses and shortages which will allow you to take corrective action such as4

recruiting to meet a shortage of those with senior management potential allowing faster promotion to fill immediate gaps developing cross functional transfers for high fliers hiring on fixed(term contracts to meet short(term skills.experience deficits reducing staff numbers to remove blockages or forthcoming surpluses.

(ow ,an (R. 1e app#ied? The report details the sort of approach companies might wish to take. %ost organisations are likely to want "#P systems4

which are responsive to change where assumptions can easily be modified that recognise organisational fluidity around skills that allow flexibility in supply to be included that are simple to understand and use which are not too time demanding.

To operate such systems organisations need4

appropriate demand models good monitoring and corrective action processes

comprehensive data about current employees and the external labour market an understanding how resourcing works in the organisation.

&f "#P techni,ues are ignored, decisions will still be taken, but without the benefit of understanding their implications. ;raduate recruitment numbers will be set in ignorance of demand, or management succession problems will develop unnoticed.

2.) $R4A/ISI/4

)rganizing resources can mean a variety of things. Hirst, the manager is in charge of organizing human resources. Hor example, a manager will need to be sure the appropriate employees are hired. &n addition, it is the manager2s responsibility to ensure the employees have the skills necessary for the workplace. )rganizing these employees, according to when they are needed and how they are utilized, is a critical part of the manager2s position.

$! ani9in $,,u!s Continuous#y )rganizing is a daily, weekly and yearly task for most managers. &n today2s fast(paced business world, things change ,uickly and variations occur. %anagers must remember that the

organizational component is fluid and forever(changing. Hlexible managers are able to change courses when necessary and still meet the client2s needs. hange is inevitable. Hor firms that experience change fre,uently, the organizing function is even more crucial. )rganizational changes such as adding new positions or eliminating certain processes can change the organizational level and structure of the business. I*po!tan,e of $! ani9ation People who are organized generally accomplish much more than disorganized individuals. The same is true of organized departments or businesses. Those managers who can master the organization function will enjoy a much smoother tenure in the management position.

>.$ &$% A/A5YSIS-

Lob Analysis is a process to identify and determine in detail the particular job duties and re,uirements and the relative importance of these duties for a given job. Lob Analysis is a process where judgments are made about data collected on a job. The &o1@ not the pe!son4 An important concept of Lob Analysis is that the analysis is conducted of the Lob, not the person. *hile Lob Analysis data may be collected from incumbents through interviews or ,uestionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.

)ete!*inin T!ainin /eeds Lob Analysis can be used in training.Cneeds assessmentC to identify or develop4

training content assessment tests to measure effectiveness of training e,uipment to be used in delivering the training methods of training !i.e., small group, computer(based, video, classroom...$

ompensation Lob Analysis can be used in compensation to identify or determine4

skill levels compensable job factors work environment !e.g., hazards3 attention3 physical effort$ responsibilities !e.g., fiscal3 supervisory$ re,uired level of education !indirectly related to salary level$

8election Procedures Lob Analysis can be used in selection procedures to identify or develop4

job duties that should be included in advertisements of vacant positions3 appropriate salary level for the position to help determine what salary should be offered to a candidate3 minimum re,uirements !education and.or experience$ for screening applicants3 interview ,uestions3 selection tests.instruments !e.g., written tests3 oral tests3 job simulations$3 applicant appraisal.evaluation forms3 orientation materials for applicants.new hires

.e!fo!*an,e Re8iew Lob Analysis can be used in performance review to identify or develop4

goals and objectives performance standards evaluation criteria length of probationary periods duties to be evaluated

Methods There are several ways to conduct a job analysis, including4 interviews with incumbents and supervisors, ,uestionnaires !structured, open(ended, or both$, observation, critical incident investigations, and gathering background information such as duty statements or classification specifications. &n job analysis conducted by "# professionals, it is common to use more than one of these methods.

="A &$% )ESI4/Lob design refers to the way that a set of tasks, or an entire job, is organized. Lob design helps to determine4 what tasks are done, how the tasks are done, how many tasks are done, and in what order the tasks are done. &t takes into account all factors which affect the work, and organizes the content and tasks so that the whole job is less likely to be a risk to the employee. Lob design involves administrative areas such as4 job rotation, job enlargement, work breaks, and working hours. A well designed job will encourage a variety of -good- body positions, have reasonable strength re,uirements, re,uire a reasonable amount of mental activity, and helps foster feelings of achievement and self(esteem.

'ACT$RS A''ECTI/4 &$% )ESI4/ Lob design is affected by organizational, environmental and behavioral factors. A properly designed job will make it more productive and satisfying .&f a job fails on this count, it must be redesigned based on the feedback. The various factors affecting job design are the following $! ani9ationa# fa,to!s )rganizational factors include characteristics of task, work flow, ergonomics and work practices. Cha!a,te!isti,s of Tas04 Lob design re,uires the assembly of a number of tasks into a job or a group of jobs. An individual may carry out one main task which consists of a number of inter( related elements or functions. )n the other hand , task functions may be spilt between a team, working closely together or strung along an assembly line. &n more complex jobs, individuals may carry out a variety of connected tasks, each with a number of functions, or these tasks may be allocated to a group of workers or divided between them. . >o!0 '#ow4 The flow of work in an organization is strongly influenced by the nature of the product or service. The product or service usually suggests the se,uence and balance between jobs, if the work is to be done efficiently .After the se,uence of jobs is determined, the balance between the jobs is established. E! ono*i,s4 'rgonomics is concerned with designing and shaping jobs to fit the physical abilities and characteristics of individuals so that ,they perform the jobs effectively . >o!0 .!a,ti,es4 *ork practices are set ways of performing work .These methods may arise from tradition or the collective wishes of employees. En8i!on*enta# fa,to!s

'nvironmental factors affect the job design. These factors that have a bearing on job design are employees abilities and availability and social and culture expectations. 'mployee Abilities and Availability4 'fficiency consideration must be balanced against the abilities and availability of the people to do the work. 8ocial and ultural 'xpectations4 1uring the earlier days, securing a job was the primary consideration. The worker was prepared to work on any job and under any working conditions. Eow, it is not the same. 7iteracy, knowledge and awareness of workers have improved considerably .8o also, their expectations from the job, "ence, jobs be designed to meet the expectations of workers. %eha8io!a# 'a,to!s4 6ehavioral factors include feed1a,0, autono*y, use of a1i#ities and 8a!iety"

B"A &$% EVA5UATI$/-

&o1 e8a#uation is the process of systematically determining a relative internal value of a job in an organization. &n all cases the idea is to evaluate the job, not the person doing it. Lob evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and e,uitable wage and salary system can be established.

&o1 E8a#uation Methods There are three basic methods of job evaluation4 !/$ ranking, !=$ classification, !>$ factor comparison. Ran0in Method Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Lobs also can be arranged according to the relative difficulty in performing them. The jobs are examined as a whole rather than on the basis of important factors in the job3 and the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. C#assifi,ation Method According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. 8eparate classes may include office, clerical, managerial, personnel, etc. The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. )ne strong point in favor of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs. The weaknesses of the job classification method are4

'ven when the re,uirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. &t is difficult to write all(inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different grades. *hen individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgments.

'a,to! Co*pa!ison Method A more systematic and scientific method of job evaluation is the factor comparison method. Gnder this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, supervisory responsibility, working conditions and other relevant factors. Pay will be assigned in this method by comparing the weights of the factors re,uired for each job, i.e., the present wages paid for key jobs may be divided among the factors weighed by importance !the most important factor, for instance, mental effort, receives the highest weight$. &n other words, wages are assigned to the job in comparison to its ranking on each job factor. .oint *ethod This method is widely used currently. "ere, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in the order of importance. The points are summed up to determine the wage rate for the job. Lobs with similar point totals are placed in similar pay grades.

C"A RECRUITME/T

#ecruitment is defined as, @a process to discover the sources of manpower to meet the re,uirements of the staffing schedule and to employ effective measures for attracting that manpower in ade,uate numbers to facilitate effective selection of an efficient workforce.B

PURPOSE: 1etermine the present and future re,uirements of the organization in conjunction with its personnel(planning and job(analysis activities. &ncrease the pool of job candidates at minimum cost. "elp increase the success rate of the selection process by reducing the number of visibly, under ,ualified or over,ualified job applicants. "elp reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period of time. 6egin identifying and preparing potential job applicants who will be appropriate candidates. &nduct outsiders with a new perspective to lead the company. &nfuse fresh blood at all levels of the organization. 1evelop an organizational culture that attracts competent people to the company. 8earch for talent globally and not just within the company.

SOURCES OF RECRUITMENT:

The sources of recruitment may be broadly divided into two categories4 /$ &ET'#EA7 8)G#1'8 =$ 'IT'#EA7 8)G# '8. 6oth have their own merits and demerits. I/TER/A5 S$URCESPersons who are already working in an organization constitute the Jinternal sources2. #etrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. *henever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted.

EXTER/A5 S$URCES'xternal sources lie outside an organization. "ere the organization can have the services of4 !a$ 'mployees working in other organizations3 !b$ Lobs aspirants registered with employment exchanges3 !c$ 8tudents from reputed educational institutions3 !d$ andidates referred by unions, friends, relatives and existing employees3 !e$ andidates forwarded by search firms and contractors3 !f$ andidates responding to the advertisements, issued by the organization.

D"A SE5ECTI$/-

8election is the process of picking individuals who have relevant ,ualifications to fill jobs in an organisation. The basic purpose is to choose the individual who can most successfully perform the job from the pool of ,ualified candidates.

The size of the labour market, the image of the company, the place of posting, the nature of job, the compensation package and a host of other factors influence the manner of aspirants are likely to respond to the recruiting efforts of the company. Through the process of recruitment the company tries to locate prospective employees and encourages them to apply for vacancies at various levels. #ecruiting, thus, provides a pool of applicants for selection.

PURPOSE: The purpose of selection is to pick up the most suitable candidate who would meet the re,uirements of the job in an organisation best, to find out which job applicant will be successful, if hired. To meet this goal, the company obtains and assesses information about the applicants in terms of age, ,ualifications, skills, experience, etc. the needs of the job are matched with the profile of candidates. THE PROCESS: 8election is usually a series of hurdles or steps. 'ach one must be successfully cleared before the applicant proceeds to the next one. The time and emphasis place on each step will definitely vary from one organisation to another and indeed, from job to job within the same organisation. Types of inte!8iews8everal types of interviews are commonly used depending on the nature and importance of the position to be filled within an organization. &n a non di!e,ti8e inte!8iew the recruiter asks ,uestions as they come to mind. There is no specific format to be followed. &n a patte!ned inte!8iew, the employer follows a pre(determined se,uence of ,uestions. "ere the interviewee is given a special form containing ,uestions regarding his technical competence, personality traits, attitudes, motivation, etc.

&n a st!u,tu!ed o! situationa# inte!8iew, there are fixed job related ,uestions that are presented to each applicant. In a panel interview '","&a! %n#"&,%"0"&' 1)"'#%on an on" a++!%(an#. The panel members can ask new and incisive ,uestions based on their expertise and experience and elicit deeper and more meaningful expertise from candidates. &nterviews can also be designed to create a difficult environment where the applicant2s confidence level and the ability to stand erect in difficult situations are put to test. These are referred to as the st!ess inte!8iew. This is basically an interview in which the applicant is made uncomfortable by a series of, often, rude, annoying or embarrassing ,uestions. Steps in inte!8iew p!o,ess&nterview is an art. &t demands a positive frame of mind on part of the interviewers. &nterviewers must be treated properly so as to leave a good impression about the company in their minds. "# experts have identified certain steps to be followed while conducting interviews4 'stablishing the objective of the interview #eceiving the candidates application and resume Meeping tests score ready, along with interview assessment forms 8electing the interview method to be followed hoosing the panel of experts who would interview the candidates &dentifying proper room for environment '""2 an'0"&' $&o*

E"A .5ACEME/T&t means assigning suitable jobs to selected candidates so as to match employees ,ualification with job re,uirement

Placement is a process of assigning a specific job to each of the selected candidates. &t involves assigning a specific rank and responsibility to an individual. &t implies matching the re,uirements of a job with the ,ualifications of the candidate.

The si nifi,an,es of p#a,e*ent a!e as fo##ows- 6 /$ &t improves employee morale.

=$ &t helps in reducing employee turnover. >$ &t helps in reducing absenteeism. A$ &t helps in reducing accident rates. 0$ &t avoids misfit between the candidate and the job. ?$ &t helps the candidate to work as per the predetermined objectives of the organization.

9.) INDUCTION:

&t involves familiarizing the new employees with company, the work environment and existing employees so that the new people feel at home. )nce an employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction. &nduction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down ,uickly and happily and stars

work. Indu,tion is desi ned to a,hie8e fo##owin o13e,ti8es- 6

/$ To give new comer necessary information.

=$ To build new employee confidence in the organization. >$ &t helps in reducing labor turnover and absenteeism. A$ &t reduces confusion and develops healthy relations in the organization. 0$ To ensure that the new comer do not form false impression and negative attitude towards the organization. ?$ To develop among the new comer a sense of belonging and loyalty to the organization. 9$ To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting new people in a new environment. The ad8anta es of fo!*a# indu,tion a!e- 6 /$ &nduction helps to build up a two(way channel of communication between management and workers.

=$ Proper induction facilitates informal relation and team work among employee.

>$ 'ffective induction helps to integrate the new employee into the organization and to develop a sense of belonging.

A$ &nduction helps to develop good relation.

0$ A formal induction programme proves that the company is taking interest in getting him off to good start.

?$ Proper induction reduces employee grievances, absenteeism and labor turnover. 9$ &nduction is helpful in supplying information concerning the organization, the job and employee welfare facilities.

A fo!*a# indu,tion p!o !a**e shou#d p!o8ide fo##owin info!*ation/$ 6rief history and operations of the company. =$ The company2s organization structure. >$ Policies and procedure of the company. A$ Products and services of the company. 0$ 7ocation of department and employee facilities. ?$ 8afety measures. 9$ ;rievances procedures. 5$ 6enefits and services of employee. <$ 8tanding orders and disciplinary procedures. /:$ )pportunities for training, promotions, transfer etc. //$ 8uggestion schemes. /=$ #ules and regulations

10.) .ER'$RMA/CE A..RAISA5-

&t refers to employers2 systematic evaluation of employees with respect to their performance on the job and their potential for development Performance appraisal means evaluating an employee2s current or past Performance to certain performance standards. Appraisal involves4 !i$ 8etting work standards !ii$ Assessing the employee2s actual performance relative to these standards !iii$ Providing feedback to the employees with the aim of motivating that person to eliminate deficiencies or to continue to perform above par. %anagers usually conduct the appraisal using a predetermined and formal method.

Darious methods of appraisal include4( a$ ;raphic rating scale method. b$ Alternate ranking method c$ Paired comparison method d$ Horced distribution method e$ ritical incident method f$ Earrative forms g$ 6ehaviorally anchored rating scales h$ %anagement by objective !%6)$ i$ >?: degree feedback.

4!aphi, !atin s,a#e *ethod-6 The graphic rating scale method is the simplest and most popular techni,ue for appraising performance. A graphic rating scale lists traits !such as ,uality and reliability$ and a range of performance values !from unsatisfactory to outstanding$ for each trait. 8ubordinates are rated by circling of checking the score that best describes his or her performance for each trait. Then the total of assigned value is calculated. A#te!nate !an0in *ethod- 6 This method involves ranking employees from best to worst on a particular trait, choosing highest, then lowest until all are ranked. 8ince it is easier to distinguish between the worst and best employees and alternate ranking is ,uite popular. Hirst, list all subordinates to be rated. Then indicate the employee who is the highest on the characteristic being measured and also the one who is lowest. The process continues till all the employees are ranked on similar fashion.

.ai!ed ,o*pa!ison *ethod- 6 Paired comparison method helps make the ranting method more precise. Hor every trait !,uality of work, ,uality etc$, Pairs are made and every subordinate is compared with every other subordinate. 'o!,ed dist!i1ution *ethod- 6 Horced distribution method is similar to grading on a curve. *ith this method, manager place predetermined percentage or rates in to performance categories. Hor example you may decide to distribute employees as follows4 /0N high performance =:N "igh average performance >:N average performance =:N low average performance /0N low performance 3o&(" %'#&%-)#%on *"an' #o0 #h%n/' $o& "*+!o.""4 No# ","&.on" (an /"# an

A5 an on"' +"&$o&*an(" %' a!0a.' &a#" &"!a#%," #o on"' +""&'. On" +&a(#%(a!6 on" +&a(#%(a!6 %$ !o0-#"(h6 0a. #o o #h%' %' #o 0&%#" "a(h

"*+!o.""7' na*" on a '"+a&a#" %n "8 (a& . Then for each trait managers place the employee2s card in the appropriate performance category. C!iti,a# In,ident Method- 6 ritical incident method involves keeping a record of uncommonly good or undesirable examples of an employee2s work related behavior and reviewing it with the employee at predetermined time. /a!!ati8e 'o!*s- 6 The final written appraisal is often in narrative form. A person2s supervisor is asked !i$ to rate the employees performance for each performance factor or skill !ii$ to write down examples and !iii$ an important plan. This aids the employee to understand where his or her performance was good or bad and how to improve that performance. %eha8io!a##y An,ho!ed Ratin S,a#es is an appraisal method that aims at combining the benefits of narrative critical incidents and ,uantified ratings by anchoring a ,uantified scale with specific narrative example of good and poor performance. 11"A TRA/I/4-

&t is the process by which employees learn knowledge skills and attitudes to further organizational and personal goals. &n general, education is -mind preparation- and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern re,uired by a person to perform a given task or job ade,uately and development is -the growth of the individual in terms of ability, understanding and awareness-.

*ithin an organization all three are necessary in order to4

1evelop workers to undertake higher(grade tasks3 Provide the conventional training of new and young workers !e.g. as apprentices, clerks, etc.$3 #aise efficiency and standards of performance5 %eet legislative re,uirements !e.g. health and safety$3 &nform people !induction training, pre(retirement courses, etc.$3

Training and development managers and specialists create, procure, and conduct training and development programs for employees. &ncreasingly, executives recognize that training offers a way of developing skills, enhancing productivity and ,uality of work, and building worker loyalty. 'nhancing employee skills can increase individual and organizational performance and help to achieve business results. &ncreasingly, executives realize that developing the skills and knowledge of its workforce is a business imperative that can give them a competitive edge in recruiting and retaining high ,uality employees and can lead to business growth. )ther factors involved in determining whether training is needed include the complexity of the work environment, the rapid pace of organizational and technological change, and the growing number of jobs in fields that constantly generate new knowledge and, thus, re,uire new skills. &n addition, advances in learning theory have provided insights into how people learn and how training can be organized most effectively. Training managers oversee development of training programs, contracts, and budgets. They may perform needs assessments of the types of training needed, determine the best means of delivering training, and create the content. They may provide employee training in a classroom, computer laboratory, or onsite production facility, or through a training film, *eb video(on( demand, or self(paced or self(guided instructional guides. Hor computer(assisted or recorded training, trainers ensure that cameras, microphones, and other necessary technology platforms are functioning properly and that individual computers or other learning devices are configured for training purposes. They also have the responsibility for the entire learning process, and its

environment, to ensure that the course meets its objectives and is measured and evaluated to understand how learning impacts performance. Training specialists plan, organize, and direct a wide range of training activities. Trainers consult with training managers and employee supervisors to develop performance improvement measures, conduct orientation sessions, and arrange on(the(job training for new employees. They help employees maintain and improve their job skills and prepare for jobs re,uiring greater skill. They work with supervisors to improve their interpersonal skills and to deal effectively with employees. They may set up individualized training plans to strengthen employees2 existing skills or teach new ones. Training specialists also may set up leadership or executive development programs for employees who aspire to move up in the organization. These programs are designed to develop or @groomB leaders to replace those leaving the organization and as part of a corporate succession plan. Trainers also lead programs to assist employees with job transitions as a result of mergers or consolidation, as well as retraining programs to develop new skills that may result from technological changes in the work place. &n government(supported job(training programs, training specialists serve as case managers and provide basic job skills to prepare participants to function in the labor force. They assess the training needs of clients and guide them through the most appropriate training. After training, clients may either be referred to employer relations representatives or receive job placement assistance. &t is the process of developing managerial talent through programs.

1;"A )EVE5$.ME/T-

&t covers not only those activities, which improve job performance, but also those which bring about growth of the personality3 help individuals in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and woman. &n organisational terms, it is intended to e,uip persons to earn promotion and hold greater responsibility. Training a person for higher and bigger job is development. And this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes.

There is more emphasis on choosing management development methods that are more organizationally relevant and effective that they have been in the past. Darious techni,ues of management development include4( !a$ %anagement on(the(job training. !b$ )ff the job training. %anagerial on6the63o1 t!ainin *ethods include job(rotation, coaching.understudy approach and action learning. Job rotation *"an' *o,%n/ *ana/"*"n# #&a%n""' $&o* "+a&#*"n# #o -&oa "n #h"%& )n "&'#an %n/ o$ a!! +a&# o$ #h" -)'%n"'' an #o #"'# #h"%& a-%!%#%"'. A manager may spend several months in each department. The person may just bean observer in each department but more commonly gets fully involved in its operations.

Coa,hin Funde!study app!oa,h- "ere the person workers directly with the senior manager or with the person he or she is to replace3 the latter is responsible for the executive of certain responsibilities, giving the trainee a chance to learn the job.

Action learning programmers give managers and others released time to work full time on projects, analysis and solving problems in departments other than their own trainees meet periodically in four or five person project groups to discuss their findings. 8everal trainees may work together as a project group or compare notes and discuss each other2s projects.

Off the job training an

e!e"o#$ent te%hni&'e(

The off the job development techni,ues for managers include case study method3 management games3 role playing etc. Case Study *ethod- 6 ase study method presents a trainee with a written description of an organisational problem. The person then analyzes the case, diagnoses the problem and presents his or her findings and solutions in discussion with other trainees. Mana e*ent 4a*es- 6 *ith management games trainees are dividend in to give or six persons group, each of which competes with the others in a stimulated marketplace. %anagement games can be good development tools. People learn best by getting involved, and the games can be useful for gaining such involvement. They help trainee develop their problem solving skills, as well as to focus attention on planning rather than just putting out fires. The group also usually elects their own officers and organize themselves3 they can thus develop leadership skills and faster cooperation and team work.

Ro## .#ayin - 6 The aim of role playing is to create a realistic situation and then have the trainees assume the role of specific persons in that situation. *hen combined with the general instruction and other roles for the exercise, role playing can trigger spirited discussions among the role player trainees. The aim is to develop trainee2s skills in areas like leadership and delegation.

1<"A C$M.E/SATI$/- 6

&t refers to fair and e,uitable remuneration to employees for their contribution to the attainment of organizational objectives. ompensation is all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. An effective set of choices about compensation systems plays a major role in determining firm performance. &t is paid in form of wages, salaries, and employee benefits such as paid vacations, insurance, maternity leave, free travel facility, retirement benefits etc. monetary payments are a direct form of compensating employees F have

a great impact in motivating employees. The system of compensation should be designed in such a way that it achieves following objectives4 !/$ apable employees are attracted towards organisation. !=$ 'mployees are motivated for better performance. !>$ 'mployees do not leave employer fre,uently. &t consists of4 aA >a es and sa#a!y ad*inist!ation 6ase compensation includes monetary benefits to employees in form of wages or salaries. The term 2wage2 is used to denote remuneration to workers doing manual or physical work. Thus wages are given to compensate the unskilled workers for their services rendered to organization *ages may be based on hourly, daily, weekly or even monthly basis The term Jsalary2 means compensation to office employees, foremen, managers F professional F technical staff. &t is based on weekly, monthly Fyearly basis. Thus time period for which salaries are paid is generally higher than in case of wage payments. *ages may be based on number of units produced !i.e. piece wage system$ or time spent on job. 6ut salary is always based on time spent on job.

'a,to!s dete!*inin pay !ates/$ )e*and and supp#y- 6 *age rates of workers depends upon demand and supply force in labour market. &f the labour is in short supply, the workers will offer the services only if they are paid well. )n the other hand, if the supply is more then workers available might get ready work at cheaper rates.

=$ %a! ainin .owe!- 6 *here labour unions are strong enough to force the hand of employers, the wages will be determined at a higher level in comparison to other units where unions are weak. <A Cost of #i8in - 6 *ages of workers also depends upon the cost of living of the worker so as to ensure him a decent living wage. ost of living varies under deflationary and inflationary pressures. *here labour unions are strong and employer do not show enough awareness, here wage are adjusted according to cost of living index numbers. A$ Condition of p!odu,t *a!0et- 6 1egree of competitions prevailing in the market for the product of the industry will also influence the wage level. Hor e.g. if there is perfect competition in the market the wage level may be at par with the value of net additions made by the workers to the total output, but may not reach this level in case of imperfect competition in the market. 0$ Co*pa!ati8e >a es- 6 *ages paid by the other firms for the same work also influence the wage levels. *age rates must also be in consistent with the wages paid by the other firms in the same industry so as to increases the job satisfaction among the workers. ?$ A1i#ity to .ay-6 *age rates are influenced by the paying ability of industry or firms to its workers. Those firms which are earning huge profits may afford to pay high wages and can provide more facilities to its workers in comparison to the firms earning comparatively low profits. !9$ .!odu,ti8ity of #a1ou!- 6 "igher productivity will automatically fetch more profit to the firm, where in turn workers will be paid high wages in comparison to other firms with low productivity. !5$ &o1 Re2ui!e*ents- 6 &f a job re,uires higher skill, greater responsibility and risk, the worker placed on that job will naturally get higher wages in comparison to other jobs which do not re,uire the same degree of skill, responsibility or risk.

!<$ 4o8t" .o#i,y- 6 8ince the bargaining power of the workers is not enough to ensure fair wages in all industries, the ;ovt. has to interfere in regulating wage rate to guarantee minimum wage rates in order to cover the essentials of a decent living. !/:$ 4oodwi## of the ,o*pany- 6 A few employers want to establish themselves as good employer in the society and fix higher wages for their workers. &t attracts ,ualified employees. &n addition there are other important factors which affect the individual differences in wage rates. These are4 /$. *orker2s apacity and Age =$. 'ducational ,ualification. >$. *ork experience. A$. Promotion possibilities. 0$. 8tability of employment ?$. 1emand for product. 9$. Profits earned by the organisation. 5$. "azards involved in work etc.
-9 E*p#oyee 1enefits also called 1enefits in 0ind3 also called f!in e 1enefits, pe!2uisites, or

pe!0s are various non(wage compensations provided to employees in addition to their normal wages or salaries. 8ome of these benefits are4 housing !employer(provided or employer(paid$, group insurance !health, dental, life etc.$, disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation !paid and non(paid$, social security, profit sharing, funding of education, and other specialized benefits. The purpose of the benefits is to increase the economic security of employees. .e!2uisitesThe term perks is often used collo,uially to refer to those benefits of a more discretionary nature. )ften, perks are given to employees who are doing notably well and.or have seniority.

ommon perks are take(home vehicles, hotel stays, free refreshments, leisure activities on work time !golf, etc.$, stationery, allowances for lunch, andOwhen multiple choices existOfirst choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist.

1="A M$TIVATI$/-

&t is the force which instigates an employee to work in a proper direction. To retain good staff and to encourage them to give of their best while at work re,uires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. 6asic financial rewards and conditions of service !e.g. working hours per week$ are determined externally !by national bargaining or government minimum wage legislation$ in many

occupations but as much as 0: per cent of the gross pay of manual workers is often the result of local negotiations and details !e.g. which particular hours shall be worked$ of conditions of service are often more important than the basics. "ence there is scope for financial and other motivations to be used at local levels. The motivation function is one of the most important, yet probably the least understood, aspects of the "#% process. *hyK 6ecause human behavior is complex and difficult to understand. Trying to figure out what motivates various employees has long been a concern of behavioral scientists. "owever, research has given some important insights into employee motivation.

Hirst of all, one must begin to think of motivation as a multifaceted process ( one that has individual, managerial, and organizational implications. %otivation is not just what the employee exhibits, but also a compilation of environmental issues surrounding the job. &t has been proposed that one-s performance in an organization is a function of two factors4 ability and willingness to do the job. Thus, from a performance perspective, employees need to have the appropriate skills and abilities to ade,uately do the job. This should have been accomplished in the first two phases of "#%, by correctly defining the re,uirements of the job, matching applicants to those re,uirements, and training the new employee on how to do the job.

6ut there is also another concern, which is the job design itself. &f jobs are poorly designed, poorly laid out, or improperly described, employees will perform below their capability.

onse,uently, "#% must look at the job. "as the latest technology being provided in order to permit maximum efficiencyK &s the office setting appropriate !properly lit and ade,uately ventilated, for example$ for the jobK

Are the necessary tools readily available for the employee useK Hor example, &f an employee prints on a laser printer throughout the day, and the printer is networked to a station two floors up, that employee is going to be less productive that one who has a printer on his desk. *hile not trying to belittle the problem with such an example, the point should be clear. )ffice automation and &ndustrial engineering techni,ues must be incorporated into the job design. *ithout such planning, the best intention of managers to motivate employees may be lost or significantly reduced.

)nce the measures have been taken to ensure that jobs have been properly designed, the next step in the motivation process is to understand the implications of motivational theories. 8ome motivational theories are well known by practicing managers, but recent motivation research has given us new and more valid theories for understanding what motivates people at work. Performance standards for each employee must also be set. *hile no easy task, managers must be sure that the performance evaluation system is designed to provide feedback to employees regarding their past performance, while simultaneously, addressing any performance weakness the employee may have.

1B"A &$% SATIS'ACTI$/&t is the amount of satisfaction and contentment derived from ones job, its pay and environment. &o1 satisfa,tion describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Lob satisfaction is not the same as motivation, although it is clearly linked. Lob design aims to enhance job satisfaction and performance. %ethods include job rotation, job enlargement and job enrichment. )ther influences on satisfaction include the management style and culture, employee involvement, empowerment and

autonomous work groups. Lob satisfaction is a very important attribute which is fre,uently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Puestions relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself and co(workers. 8ome ,uestioners ask yes or no ,uestions while others ask to rate satisfaction on /(0 scale !where / represents Cnot at all satisfiedC and 0 represents Cextremely satisfiedC$. &n today2s world, it is naive to assume that people work primarily to achieve professional fulfillment and job satisfaction. As a matter of fact, they seem to work because what they get on the job enables them to achieve whatever they want to achieve off the job. Today2s typical professional may no longer have an undivided loyalty and commitment towards his job. Therefore, it is incorrect to believe that an employee2s work life is spent entirely in the pursuit of job satisfaction. Perhaps, he or she is not actively seeking job satisfaction as much as aspiring towards other important needs and considerations like own career progression, standard of living and personal fulfillment. The job is a means to achieving the desired ends. )ne of the typical propositions held by most people connected with "# is that job satisfaction is positively associated with job performance. 1oes a @satisfiedB employee always @produceB moreK &t may be wrong to presume and take for granted a fictitious linkage between job satisfaction and employee productivity in all cases. &n some cases, one may be shocked to find that while the so(called @satisfactionB was increasing, the productivity of the individual was declining. The reason behind this is the mistaken concept that a satisfied employee will devote his dedicated attention to his work. A @satisfiedB or @happyB employee may begin to develop an approach of self(complacency, and an overall sense of well(being, and conse,uently, his temperament may become one of ignorant submission and passivity rather than one of positive action and active involvement. As a result, it is not too uncommon to see that the productivity of the employee does not always closely follow his upward satisfaction curve.

1C"A 4RIEVA/CE RE)RESSA5Darious problems and conflict which are amongst the employees should be properly and cordially handled. A grievance is a sign of an employee-s discontentment with his job or his relationship with his colleagues. ;rievances generally arise out of the day(to(day working relations in an organization. An employee or a trade union protests against an act or policy of the management that they consider as violating employee-s rights. )ne of the effective ways of minimizing and eliminating the source of an employee-s grievance is by having an Jopen door policy-. An Jopen door policy facilitates upward communication in the organization where employees can walk into a superiors2 cabin at any time and express their grievances.

1D"A C$/'5ICT MA/A4EME/T-

&t refers to effective and efficient management of conflict arising in the organization. "ow is the idea of conflict management related to "uman #esource %anagementK The answer to this ,uestion is much simpler than one may think. &n a broad sense, the "uman #esource 1epartment of all business organizations has one primary task4 to deal with the people in the organization.

%ore specifically however, it is "#-s job to ensure that productivity, efficiency, safety, fairness, and smooth practices are executed both inside and outside of the organization. *ith that said successful conflict management techni,ues are essential to ensure that both the broad and specific duties of a "uman #esource 1epartment are carried out. 8ince all people are different, each individual has different experiences and possess uni,ue perspectives. onse,uently, different perspectives potentially lead to biases or differences in opinion and these discrepancies are what essentially cause conflict. 8ome conflicts are insignificant compared to others but nonetheless, managing even the smallest conflicts is no easy task. "owever, several successful conflict management techni,ues can be utilized at all levels of an organization in order to ensure that efficiency, safety, fairness, and smooth, ethical business practices are executed. )ne common misconception about conflict in general is that all conflict is bad. "owever, this is not the case in the business setting. Although, if individuals are physically injuring one another and putting their safety and the safety of others at risk via this particular conflict, then it is safe to say that CphysicalC conflict and altercations are undesirable. The bottom line from a business perspective is that ChealthyC conflict is desirable in any organization. C"ealthyC conflict merely shows that people are not holding back their ideas and beliefs. Hurthermore, the more ideas and perspectives that are brought to the table, the more opportunity managers have to make good, well informed decisions that look at various issues from all angles. An important concept for managers to remember when faced with conflict is that conflict is neither good nor bad3 it is merely a difference in opinion.

1E"A .ARTICI.ATIVE MA/A4EME/T-

.a!ti,ipation of e*p#oyees4 'mployees should be given a chance to participate in the working of the firm. Their suggestion should be taken into consideration. *orker participation in management is an effective tool for prevention of industrial disputes. The level of workers2 participation can vary from organization to organization. The basic objective of worker participation is to provide an opportunity to the workers to participate in the organizational decision(making. 6y virtue of their participation, employees are bound to abide by all the decisions taken. This also helps in boosting the employee morale and enhancing their commitment to the organization. 8ome of the common forms of worker participation in management in &ndia are wo!0s ,o**ittees, 3oint *ana e*ent ,oun,i#s, 3oint ,oun,i#s, p#ant ,oun,i#s, shop ,oun,i#s etc. *orker participation in &ndia has achieved only partial success due to factors like lack of proper education among workers, lack of understanding between the management and the workers and multi(unionism. A good organizational environment built on mutual trust and confidence between the management and the workers would help in effective and successful worker participation in management.

1G"A (EA5T(, SA'ETY and >E5'ARE (EA5T(-

The well( being of the employee in an organization is affected by accidents and ill health + both physical and mental. .(YSICA5 (EA5T(4 &ll health of employees results in reduced productivity. "ealthy employees are more productive, more safety conscious, and are more regular to work. This realization has made many management to provide health services to their employees like first( aid, complete medical care, etc. %any progressive organizations have well e,uipped dispensaries with full(time and part(time doctors. ME/TA5 (EA5T(4 &n recent years, mental health of employees, particularly that of executives, has engaged the attention of management. %ental breakdowns are common in modern days because of stress and tension. This results in reduced productivity and lower profits for the organization. A mental health service is rendered in following ways4 /. Psychiatric counseling =. o operation and consultation with outside psychiatrics >. 'ducation of company personnel in importance of mental health A. 1evelopment and maintenance of effective human resource programme.

SA'ETY8afety refers to absence of accidents. &t is protection of workers from the dangers of accidents. /EE) '$R SA'ETY MEASURES C$ST SAVI/4- Two types of cost are incurred by the management when an accident occurs. These are direct costs in form of compensation payable and medical expenses incurred in treating the patients. I/CREASE) .R$)UCTIVITY- 8afety promotes productivity. 'mployees in a safe environment can devote time to improving ,uality and ,uantity of output.

M$RA5 and 5E4A5- 8afety is important on humane grounds too. There are legal provisions relating to safety measures which have to be undertaken by the management. >E5'ARE*elfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. *elfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind.forms. 'mployee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. 7abor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

7abor welfare has the following objectives4 /. To provide better life and health to the worker =. To make the workers happy and satisfied >. To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

The basic features of labor welfare measures are as follows4 /. 7abor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. =. *elfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining

>. 7abor welfare schemes are flexible and ever(changing. Eew welfare measures are added to the existing ones from time to time. A. *elfare measures may be introduced by the employers, government, employees or by any social or charitable agency. 0. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce.

.ERS$//E5 .$5ICIES

/EE) A/) IM.$RTA/CE $' .ERS$//E5 .$5ICIES I/ I/SURA/CE SECT$R The very objective of insurance is to place the insured in the same financial position as he was just before the loss. &t can be said that the system of insurance can be explained as social and financial assistance to business enterprises, financial stability to commerce and industry and basis of credit. The word personnel in the context of any organization imply the persons connected with the working of that organization or establishment or in other words the person at work. This denotes the staff or employees of an organization. The term policy refers to any guidance to action. "ence policy making are supplementary and complementary to each other.

Personnel policy is the guideline which assists in proper working of the org. and enables it to achieve its various objectives. Policies are broad guidelines as to how the objectives of a business are to be achieved. Policies provide the guidelines which we should keep in view while achieving the ends. A policy is a predetermined and accepted course of thought and action to serve as a guide towards certain accepted objectives. &n other words, we can say that policies are related to the organization2s overall purpose and its objectives in the various areas with which its operations are concerned. Personnel policies lay down the decision making criteria in line with the overall purpose of the organization in the area of human resource management. Personnel policies are developed by the top management to assist the managers at various levels to deal with the people at work.

The Ai*s and $13e,ti8es of pe!sonne# po#i,ies shou#d 1eF a!e!/$ To provide such conditions of employment and procedures as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner3 !=$ To provide an ade,uate, competent and trained personnel for all levels and types of management3

!>$ To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers, by developing suggestion plans, joint management councils, work committees, etc., and by performance appraisal discussions3

!A$ To provide security of employment to workers so that they may not be distracted by the uncertainties of the future3

!0$ To provide an opportunity for growth within the organization to persons who are willing to learn and undergo training to improve their future prospects3

!?$ To provide for the payment of fair and ade,uate wages and salary to workers so that their healthy co(operation may be ensured for an efficient working of the undertaking3 !9$ To recognized the work and accomplishments of the employees by offering non( monitory incentives3 and !5$ To create a sense of responsibility, on the part of those in authority for the claims of employees as human beings, who should be guaranteed protections of their fundamental rights and offered enough scope for developing their potential.

SC$.E $' .ERS$//E5 .$5ICIES Personnel policies must cover all areas of human resource management. Gsually personnel policies are framed with regard to all functions of human resource management as stated below4 1" E*p#oy*ent .o#i,ies !i$ !ii$ !iii$ %inimum hiring ,ualifications. Preferred sources of recruitment. #eliance on various selection devices such as tests, reference checks, and interviews. ;" T!ainin and de8e#op*ent po#i,ies !i$ !ii$ !iii$ !iv$ )pportunities for training and development. 6asis for training Types of training, viz., on(the(job, off(the+job. Programmes of executive development.

<" T!ansfe! and p!o*otion po#i,ies !i$ !ii$ !iii$ !iv$ #ationale for transfer. Periodicity of transfer. 7ength of service and ,ualifications re,uired for promotion. *eightage to seniority and merit in promotion.

=" Co*pensation .o#i,ies !i$ !ii$ !iii$ !iv$ %inimum wages and salaries. &ncentive Plans. Profit 8haring. Eon(%onetary #ewards.

B" Inte !ation and (u*an Re#ations .o#i,ies !i$ !ii$ !iii$ !iv$ "andling of ;rievances. #ecognitions of labour unions. *orkers2 participation in management. 1iscipline.

C" >o!0in ,onditions and we#fa!e po#i,ies !i$ !ii$ !iii$ !iv$ Minds and standards of working conditions. 8afety programme. Types of welfare services. Hinancing of employee services.

IM.$RTA/CE $' (RM I/ I/SURA/CE SECT$R

"uman resource is one of the natural resources of any country-s economy. &t is the wealth of the country. &n the context of insurance, human resource is of greater importance. The deployment of human resource through proper and efficient selection, training and development, is called "uman #esource %anagement.

The success of any insurance company largely depends on efficient human resource management, apart from operations, marketing and sales, the "# department manages all the efficient people working in operations and marketing divisions in any organization.

/eed fo! (R) and Its Mana e*ent in insu!an,e se,to!

1. There are many changes in the insurance sector on account of changes in the industry due to the entry of new insurance companies. Therefore, it has become a necessity to recruit, train and deploy people at all level efficiently, for better performance and success. This is the basic function of "#1, which includes the concept of "#%.

=. &n view of the changes in the political scene in the recent past, seeping changes are expected to take place in the insurance industry. &t is expected that only a few insurance companies will remain after a series of amalgamations and mergers, not only in the &ndian insurance industry, but also at the international level.

>. 'mergence of new private sector insurance companies, competition and self(regulation has necessitated efficient "uman #esources %anagement in insurance companies. "#% is a continuous process, involving selection, recruitment and training on an Con going basisC for the staff and their deployment in the right place. The activity is called "# development.

E''ICIE/CY I/ I/SURA/CE SECT$R >IT( (RM 1. The crucial factors behind successful insurance companies will be continuous and sustained build up of skills, knowledge, education and attitudes among people working in the companies, particularly the frontline staff, working in the branches.

=. &t is possible through professionalization, which is an internal part of "#%. The staff should be motivated and encouraged to practice professionalism for their personal growth and thus contribute to the organization-s growth.

>. 6uilding efficiency is, therefore largely dependent on the best selection process adopted by the "# department. There is imperative need to build up skills within an organization for the successful managing of available "#.

A. &nsurance companies have vast human resource specialized in multiple disciplines like technology, law, sales, underwriting, administration, risk management etc. The basic function of "# is to manage them efficiently for continuous success. Hor building up better efficiency in insurance sector, "#% have to follow the below two fun,tions4(

/$ 'mphasis on job description and job Assignment.

=$ #esponse to challenges in future.

1" EM.(ASIS $/ &$% )ESCRI.TI$/ A/) &$% ASSI4/ME/T

)ne of the important functions of "# department is to ensure proper definition for workers in the insurance companies. The staff should know about the vacant positions and the skills re,uired for those particular jobs. Accordingly, people should be recruited to that particular job. The allotment of a job to a right person, who has the re,uired skills is called job assignment. &f this function is not properly performed by the "# department, people in all departments will be in a chaotic situation. This will impair their performance and subse,uently customer service. &mprovement in performance and skills of existing employees can be achieved through recruiting the right person for the right place. Thus, job description and job assignment are parallel concept re,uiring attention.

;" RES.$/SE T$ T(E C(A55E/4ES I/ 'UTURE &nsurance companies should chalk out a wide range of strategic responses to the future challenges. They have to look into the structure, procedures and processes of the systems and make policies accordingly, to ensure necessary changes. &t is the foremost function of "#%. &nsurance companies have to convince their employees that that a challenge is an opportunity to prove oneself. ompanies in &ndia have to utilize this opportunity before the competition overtakes them and people in banks have to respond immediately to the challenges.

This re,uires the "# department to work efficiently. &nsurance companies are in the service industry, where the raw material is "#.

"#%, therefore, emerges as a very basic and important element for strategic response to the changes that are taking place in the insurance sector. "# departments should take it seriously to formulate policies to meet these challenges. "#1 is a critical management function. 'ach manager should have initiative, awareness, co( ordination and facilitation to perform his role. This is critical function of "#%.

T(E C(A/4I/4 I/SURA/CE E/VIR$/ME/T and T(E R$5E $' (RM

)wing to the changing insurance environment "# department should call for appropriate response in e,uipping people who have to perform in the new environment. People should be prepared to -accept changes. The upgraded technology might create fear among the staff regarding their adaptability to the new environment. &t is the responsibility of the "# department to properly counsel people and prepare them to face the challenges before them. Their mind should be fine ( tuned to work in the new technological environment. The main function of "#% is to build up capabilities in people working and intensify their sense of belonging to the organization. To improve their performance and increase the bank-s productivity "# must incorporate challenges in routine work. Team spirit has to be inculcated in the branches and greater focus should be on customer care. This would be possible only through the unprecedented efforts to be put forth by the "# department.

RE>AR)S, REMU/ERATI$/, I/CE/TIVES A/) .U/IS(ME/TS "# department should make efforts to provide appropriate incentives, rewards and increase remuneration to employees. )therwise, dissatisfaction may creep into all levels of the bank, resulting inC inefficiency, perfunctory attitude, and poor service standards. These will ultimately affect the functioning of the organization. Therefore, the "# department has to formulate policies with utmost care taking into account all these facets. #adical changes are re,uired in the performance appraisal system to avoid nepotism. "# policies with regard to manpower and career planning, and placement policies have to he revamped. A level of professionalism with the help of technology and scientific management has to be brought in by the "# departments. lear policies regarding performance rewards, incentives and increase in remuneration have to be outlined and implemented.

*ith regard to the accountability for non(performance and for the mistakes, the "# department-s

intervention is a must for establishing the facts of each case. Proper judgment Cwith impartial attitude helps develop satisfaction among the staff members.

6efore punishing for mistakes and non(performance, a certain kind of en,uiry is re,uired by the "# department. &n the present scenario, particularly in the new private sector insurance companies, dismissals are taking place arbitrarily without proper en,uiry for accountability. This will impart the efficiency of the existing staff and lower dynamism in their performance, ultimately leading to reduced productivity due to fear and insecurity of losing the job. &t is the first and foremost duty of the "# department to formulate appropriate policies with regards to punishments. A set of guidelines and procedures has to be formulated and followed for punishments to staff in case of any indiscipline.

There are certain inevitable situations in working where the staff needs to experiment in order to take decisions. &n the process mistakes are bound to occur. process will be vitiated. &n such situations the "# department plays a crucial role in adopting proper strategies and in responding correctly to the warranted situation. ommitting mistake is a way of learning. These are not to be treated as sin by the management. )therwise, the decision making

"#% will play a significant role in handling situations while awarding punishments to employees without impairing others- efficiency.

EM.5$YEE TUR/$VER and IM.5EME/TATI$/ $' T(E HEXITI .$5ICY

&n human resources context, tu!no8e! or #a1o! tu!no8e! is the rate at which an employer gains and loses employees. 8imple ways to describe it are Chow long employees tend to stayC or Cthe rate of traffic through the revolving door.C Turnover is measured for individual companies and for their industry as a whole. &f an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. "igh turnover can be harmful to a company-s productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.

/. &n the present scenario, the employee turnover has increased in the insurance industry, specifically in the new private sector companies.

=. The main reason behind the trend is the recruitment of young people without experience.

>. They will be moving to other jobs after gaining experience, for higher salaries.

A. This usually has a bad effect on the work atmosphere of the organization.

0. The new private sector companies have become a training ground for the new and fresh recruits.

?. &t is the responsibility of the "# department to arrest this trend of employee turnover.

9. The "# department should formulate suitable policies to retain the staff by providing -incentives, rewards, and better increments every year. These policies will ensure organizational efficiency.

5. The employee turnover may increase on account of the following4 a. 7acunae in the appraisal systems, b. Eon(recognition of talent, c. 1iscouragement for the staff, d. 7ack of motivation, e. 7ack of promotions to higher cadre in the organization etc.

<. "# and personnel departments of insurance companies should realize the importance of all these aspects and help the organization in formulating correct policies. &n this process, the "# departments of all banks should realize the importance of recruiting experienced people in higher positions to ensure utmost efficiency. &t will increase the productivity and profitability of the organization. (ow to p!e8ent tu!no8e! 'mployees are important in any running of a business3 without them the business would be unsuccessful. ontinual training and reinforcement develops a work force that is competent, consistent, competitive, effective and efficient. 6eginning on the first day of work, providing the individual with the necessary skills to perform their job is important.

Eetworking and strategizing within the company provides ongoing performance management and helps build relationships among co(workers. &t is also important to motivate employees to focus on customer success, profitable growth and the company well(being. 'mployers can keep their employees informed and involved by including them in future plans, new purchases, policy changes, as well as introducing new employees to the employees who have gone above and beyond in meetings. Taking the time to listen to employees and making them feel involved will create loyalty, in turn reducing turnover allowing for growth.

(UMA/ RESIURCE RISJ-

The "# risk is another important aspect to be managed by the "# and Planning department. 7et-s face it, owning a business today is about managing risk. *hether it-s the traditional fire, wind, hail kind of risk or the more perplexing and subtle kind of risk like the economy, we all have a huge exposure to elements both within and outside our immediate control. )f all the sources of risk facing your business today, none is more immediate and more emotionally charged than the risk associated with the actions of your workforce. &t-s the human factor and you-ve had it since you hired your first employee. 8imply put, the continued success of your business can well rest on what an employee says or does. Actions taken, or not taken3 words spoken, or not spoken3 deeds done, or not done, whether with or without your knowledge or approval can, and most probably will, be used to your detriment if the outcome is undesirable or financially harmful to someone. &n certain situations the departure of an employee with

specialized skills and knowledge due to resignation, retirement or removal may bring certain systems to a halt and may even create chaos. This is called "# risk.

&n this process, the insurance company may have to pay multiple individuals with similar knowledge and experience to ensure protection against this risk.

8imilarly, the company may have to face the risk of loss of key personnel, which is called the risk of inade,uate motivation among staff who manages the situation.

&f the management offers inade,uate incentives or doesn-t, give any incentive at all, or wrong incentives, it may lead to disastrous financial results, provided the incentives are linked to individual performance. &n such a case, the personnel will not co(operate in combating the risky situation. &n case a group incentive is given, individual motivation will be affected. Therefore in such C"# riskC 8ituations incentives should be linked to short(term results and not to long(terms ones. &t is the responsibility of the "# department to formulate proper policies to prevent such situations, where C"# riskC may crap up due to the exit of skilled personnel from insurance companies. The Ris0 of (u*an E!!o! 6ecause human error is a significant risk to businesses everywhere, management techni,ues have been developed which afford protection for all but the most serious offenses. The first line of defense for most managers is the purchase of insurance. "owever, it is much more effective to avoid the exposure altogether whenever possible. &n order to avoid a risk you must first recognize the hazard. &n this endeavor, information is key. As it relates to the workforce, this means knowing as much as is legally permitted about an individual before you hire them, then acting on that information.

*hile a thorough background investigation can mean different things to different people, all efforts should be focused on answering one basic ,uestion, C&s this person fundamentally who and what they represent themselves to beKC There is no Cone size fits allC answer to this ,uestion. 1ifferent jobs demand different levels of investigative effort. 'mployers are being held liable for the actions of their employees for what they Cshould have known or could have known,C and the actions they Cshould have or could haveC taken. A few examples of the gravity of this situation can be found in cases such as where a retail grocer employed a checker who took information from a customer-s personal check and went to her home. This resulted in theft and physical assault by the employee. The retailer was held liable and successfully sued. Another large retailer offering drapery installation was successfully sued for an employee sexually assaulting a customer in her home. An independent contractor working as a door(to(door sales person, who had just been released from prison and was currently on parole, sexually assaulted a woman in her home. The suit against the company was successful and was upheld by the 8upreme ourt. *hether the action is taken by an employee or an independent contractor, employers are being held responsible for the actions of those who represent their company. ompanies most vulnerable to these types of suits are those whose representatives have access to an individual-s personal information or direct access to the customer-s home. In8esti ate Ca!efu##y As a general rule, entry(level positions don-t re,uire the same degree of screening that skilled positions warrant. Eevertheless, all investigations should begin with, at a minimum4 positive identification of the individual3 and a review of criminal records in the individual-s current county of residence. %ore involved investigations can include4 'ducation and employment history verifications3 A driving record review3 Testing for the use of illegal substances !drug testing$3 and

A broad scale research of criminal records in any jurisdiction that an individual has lived or worked in the past several years.

*hat is done, and to what extent, is a function of each employer-s level of risk tolerance, time allotted to the task, and budget. As important as what is to be done is whoKs oin to do it? *e-ve all heard the adage that an individual who represents themselves in a court of law has a fool for a client. The same can be said for background screening. &n almost all cases, background screening should be contracted out to a professional firm. The simple fact is that while nine out of /: people may be straightforward and forthcoming, one out of /: isn-t. onducting your own investigation, presenting the results and defending your actions are much more likely to result in hard feelings and potentially emotionally charged confrontations than if you can say, C*e didn-t perform this investigation but we will gladly give you a copy of the report !as re,uired by law$ and you can contact the reporting agency and lodge any complaint you feel is warranted.C The ability to distance you and your company from the results of the investigation is a tremendous advantage. 'ven if the investigation can be performed more economically internally, the savings will rarely, if ever, offset the added potential for confrontation. And since we-re talking about risk management, remember that by outsourcing this service you have every legal right to hold the company performing the investigation accountable for the accuracy of their work. Assuming you-re dealing with a licensed and reputable firm, their errors and omissions insurance will afford your company a measure of protection you simply will not have if you perform the screening internally. CASE STU)IES

1A 'UTURE 4E/ERA5I I/)IA 5I'E I/SURA/CE

The company chosen for the project is H'UTURE 4E/ERA5I I/)IA 5I'E I/SURA/CEI" The head office of the company is located in %umbai. )*OUT COMP)N+: Huture ;enerali &ndia 7ife &nsurance o. 7td. is one of the rapidly growing &nsurance companies in &ndia. The ompany is a joint venture between the &ndia(based Huture ;roup and the &taly(based ;enerali ;roup. Huture ;enerali group is present in both the 7ife and Eon(7ife businesses in &ndia as Huture ;enerali &ndia 7ife &nsurance &nsurance o. 7td. ;enerali ;roup was established in Trieste on 1ecember =?, /5>/. &t is an international group working in more than A: countries with insurance companies, financial companies and real estate sectors. After doing business in entral 'astern 'urope, ;enerali ;roup has started to develop hina and &ndia. ;enerali ;roup business in the principal markets of the Har 'ast, including Hortune 0:: international ranking. o. 7td. and Huture ;enerali &ndia

ranks among the top three insurance groups in 'urope and the >:th largest company in the

RECRUITMENT , SE-ECTION PROCESS: Their recruitment process includes both internal and external methods.

I/TER/A5 MET($)S- The company uses4 ( '%P7)Q'' #'H'##A78( &t is a recruitment method in which the current employees are encouraged and rewarded for introducing suitable recruits from among the people they know. The logic behind employee referral is that @it takes one to know oneB. The post for which they prefer this process is 8A7'8 %AEA;'#, 8'E&)# 8A7'8 %AEA;'#, and A88&8TAET 8A7'8 %AEA;'#. 6enefits of this method are as follows4 Puality andidates ost savings Haster recruitment cycles. &ncentives to current employees

)n the other hand it is important for an organization to ensure that nepotism or favoritism does not happen, and that such aspects do not make inroads into the recruitment process. L)6 P)8T&E;( Hor job posting they use J&ntranet2. Lob Posting is an arrangement in which a firm internally posts a list of open positions !with their descriptions and re,uirements$ so that the existing employees who wish to move to different functional areas may apply. &t is also known as Lob bidding. I# h"!+' #h" 1)a!%$%" h"%/h#'6 %n'#"a "*+!o.""' 0o&2%n/ %n #h" o&/an%:a#%on #o '(a!" n"0 o$ !oo2%n/ $o& -"##"& +"&'+"(#%,"' o)#'% ". I# a!'o h"!+'

o&/an%:a#%on #o &"#a%n %#' "8+"&%"n(" an +&o*%'%n/ "*+!o.""'. EXTER/A5 MET($)S1. H)#%'# '%P7)Q''8(The company hires back its best ex(employees especially for

8enior 8ales %anager post.

2.

)77';'8(Hrom colleges they recruit candidates for 8ales %anager F 8ales 'xecutives posts. The minimum salary package for the freshers is /.5 lacs for Area 8ales %anager,=.0 lacs for 8ales %anager,>.0 lacs for 8enior 8ales %anager.

3. L)6 HA&#(#ecruiting method engaged in by a single employer or group of employers to

attract the large number of applicants to one location for interviews. A. A1D'#T&8&E;( Advertisements are the most common form of external recruitment. They can be found in many places !local and national newspapers, notice boards, recruitment fairs$ and should include some important information relating to the job !job title, pay package, location, job description, how to apply(either by D or application form, etc$. *here a business chooses to advertise will depend on the cost of advertising and the coverage needed i.e. "ow far away people will consider applying for the job. Advertising can be through both P#&ET and '7' T#& %'1&A. The ,o*pany uses .ASSES te,hni2ue fo! se#e,tion" .6.!ospe,t A6App!oa,h S6Se*ina! S6S,!eenin E6E8a#uation S6Se#e,tion

.R$S.ECT6They check whether the candidate is fit for the job or not" A..R$AC(6The telephone. ompany approaches with the candidates through emails or

SEMI/AR6The

ompany then conducts seminar. Hor major seminars they hire hotels

but for small ones they prefer ,o*pany:s t!ainin !oo*.

SCREE/I/46They communicate the job profile to the filtered candidates. EVA5UATI$/6They give them basically the sales target, or evaluate them on the basis of experience, age factor, communication skills. This is a kind of *)#M 8A%P7' T'8T&E;.

SE5ECTI$/6Hinally they select the candidate on the basis of the results of evaluation.

SE5ECTI$/ INTER.IE/S: They prefer 8T#G TG#'1 &ET'#D&'*8 in which they prefer ,uestions regarding family background, work experience and interpersonal skills. MET($)S $' I/TERVIE>S$/E6$/6$/E I/TERVIE>6Applicant meets one by one with the interviewer. &nterview process takes place as follows4

I/ITIA5 %RA/C( 5EVE5 I/TERVIE>66ranch manager takes such interviews mainly to select the localities and decide who are best suited for the job.

RE4I$/A5 %RA/C( I/TERVIE>(#egional branch manager takes the interview F his decision to select or reject the candidate is final.

=.$ MAX /E> Y$RJ 5I'E I/SURA/CE

Ma+ /ew Yo!0 5ife Insu!an,e Co*pany 5td" is a joint venture between %ax &ndia 7imited, one of &ndia-s leading multi(business corporations and Eew Qork 7ife &nternational, the international arm of Eew Qork 7ife, a Hortune /:: company. The company has positioned itself on the ,uality platform. &n line with its 8ision to 1e the *ost ad*i!ed #ife insu!an,e ,o*pany in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. &ncorporated in =:::, %ax Eew Qork 7ife started commercial operation in April =::/. &n line with its values of financial responsibility, %ax Eew Qork 7ife has adopted prudent financial practices to ensure safety of policyholder-s funds. The ompany-s paid up capital as on >:th April, =::< is #s /,95? crore. %ax Eew Qork 7ife has multi(channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance marketing and dedicated distribution for emerging markets. The ompany places a lot of emphasis on its selection process for agent advisors, which comprises four stages ( screening, psychometric test, career seminar and final interview. The agent advisors are trained in(house to ensure optimal control on ,uality of training. The company currently has around 9/,==< agent

advisors at 9/0 offices across >5< cities. The company currently has more than /:,A<A employees.

The SIX )iffe!entiato!s 1A SE5ECTI$/ .R$CESS The selection process of %ax Eew Qork 7ife is designed to help the candidate and the organization make a decision in mutual best interest. The first step in the process is an initial interview This is followed by a test of numerical ability. andidates who make the cut are invited to attend a career seminar. The procedure facilitates a process of discovery, as both sides develop an understanding of each other2s profile and re,uirements. The final stage in the selection process is an assessment of the candidate-s natural market and potential for growth.

;A TRA/I/4 .R$CESS

%ax Eew Qork 7ife has the finest training program for agents in the industry. They run training and development programs for agents throughout their career.

The training consists of a two(year formal classroom based program. %ax Eew Qork 7ife has two full(time professional trainers in each office whose sole job is to train and guide new agents.

The success of their training programs owes a lot to the strength of their partner, Eew Qork 7ife. The training program developed by Eew Qork 7ife in the Gnited 8tates is widely recognized as the best in the insurance industry. They have customized this outstanding program for the &ndian market. &n the Gnited 8tates, Eew Qork 7ife had more members in the %illion 1ollar #ound Table, the worldwide organization of top professionals in the insurance industry, for 0: consecutive years. 8ince =::/, %ax Eew Qork 7ife has had more ,ualifiers for the prestigious %illion 1ollar #ound Table than all the other private sector insurance companies taken together.

<A MA/A4EME/T 5$YA5TY )ne of the many advantages of working with %ax Eew Qork 7ife is that managers are not allowed to sell insurance products to their own customers. ompensation in management is derived entirely from the success of agents and the overall growth of the organization. %anagers at all levels are totally committed to the success of agents and do not pursue any conflicting goals.

=A .R$)UCT RESEARC( Eo organization can claim to have the number one product in the insurance industry for a long period of time. &t is a matter of great pride that our products have always been rated among the best in the industry. These products have been developed after extensive research of the &ndian market and are designed to meet an individual2s needs at every life stage. BA C$/TRACT The Agent-s ontract is designed to attract efficient professionals and retain them for a long time by compensating them generously. As an agent you can count on the support of %ax Eew Qork

7ife at all times to help you earn a good income today and create a secure retirement for tomorrow.

CA 4REAT >$RJ E/VIR$/ME/T %ax Eew Qork 7ife is committed to working in a high(tech environment. &n the Gnited 8tates, Eew Qork 7ife is noted for its leadership in using technology to provide the very best in customer service and employee support. The same systems have been adapted for &ndia to offer simple, easy(to(understand illustrations for the most complex products.

>o!0 .!ofi#e This is an entrepreneurial opportunity with flexible working hours and the potential to earn unlimited income without any capital investment. As an agent with %ax Eew Qork 7ife, you are a financial advisor, businessperson and your own boss. The only limit to your growth is your own imagination and drive. The #ole4

&dentify prospects and conduct need analysis Provide customized solutions for long term financial protection and wealth creation lose sales 1eliver the policy Provide after sales service and build references for future sales

6enefits A career at %ax Eew Qork 7ife has innumerable advantages. *ith low start up investment you can become a part of a world(class organization and make a positive difference to people2s lives. )ur agents sell more policies and make more money than agents of any other life insurance company. The financial rewards are in the form of

ommissions on new sales )ngoing renewal commissions Performance linked bonus #eferral commissions Training reimbursement

C$/C5USI$/

The core function of "#% in the insurance industry is to facilitate performance improvement, measured not only in terms of financial indicators of operational efficiency but also in terms of the ,uality of financial services provided. Hactors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. The ,uality of human resources indicates the ability of insurance companies to deliver value to customers. apital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for achieving that competitive edge. The primary emphasis needs to be on integrating human resource management strategies with the business strategy. "#% strategies include managing change, creating commitment, achieving flexibility and improving teamwork. The other processes representing the overt aspects of "#%, viz. recruitment, placement, performance management are complementary. "#% has a crucial role to play in insurance sector. &t acts as backbone for the insurance sector, because it only lays the structure for the organizations operations, functioning and working. 'ven with the advent of high technology it will have a prominent role to portray.

A/A5YSISAs it can be seen from the data collected and from the case studies that majority of the insurance companies believe that investing in "#% is necessary in order to strengthen the insurance sector. &nvesting in "#% practices allows companies to strengthen their human resources. "uman resources are one of the most important resources in any organisation. 'fficient management of human resources is necessary for the success of an organisation. 'fficient "#% practices leads to employee satisfaction. 'mployee2s performance improves which benefits the entire organisation. 'mployees are motivated and they perform better. This will in turn lead to increase in customer satisfaction and the organisation will be able to increase its customer base.

RESU5TThus our hypothesis investing in human resource can help a firm perform better is .R$VE)" %i1#io !aphy 1.9 "uman #esource %anagement Text and ases by M. Ashwathappa.

>e1 Sites 8isited /. www.google.com =. www.wikipedia.com >. www.futuregenerali.in A. www.maxnewyorklife.com 0. http4..business.mapsofindia.com ?. http4..scrid.com. 9. http4..humanresources.about.com 5. http4..www.buzzle.com <. http4..traininganddevelopment.naukrihub.com /:. http4..openpdf.com //. http4..www.irdaindia.org.