Professional Documents
Culture Documents
TYBMS .
DIV- A .
ROLL NO-36.
SUB- HUMAN RESOURCES
EXECUTIVE SUMMARY
"If you want 10 days of happiness, grow grain. If you want 10 years of happiness, grow a
tree. If you want 100 years of happiness, grow people."
commercial organization.
Increasing emphasis on profitability: The profitability aspect of the insurance companies has
gotten a lot of attention in the recent years.
Employee satisfaction: 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.
HYPOTHESIS STAEMENT
Investments in HRM practices can help a firm perform better.
INTRODUCTION
Competitive advantage of a company can be generated from human resources (HR) and
company performance is influenced by a set of effective HRM practices. In this study, we
intended to assess the HR practices in insurance companies
Every 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. Organizations that can do this will be both effective as well as efficient. Inefficient 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
The insurance sector employers are indulging into aggressive recruitments. With around 15
million new policies being sold every year, the insurance sector is picking up fast in India. Due
to its robust growth there is a need of skilled professionals in the sector. The employers are
looking forward to hire freshers at junior levels as they are quite 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.
4. Mitigation means the insured will not behave irresponsibly and will take due care so
that the risk of loss or the loss is minimized.
5. Subrogation means the insurance company acquires legal rights to act on behalf of the
insured i.e. the insurance company steps into the shoes of the insured.
6. Causa Proxima or Proximate Cause means the proximate cause of loss to ascertain
whether the loss is covered under the policy.
To handle all the affairs of the customer related to the policies or the
services offered by the insurance company and to resolve any conflicts
arising if any.
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.
Competencies required for job in insurance
Any Insurance job seeker must possess the following set of skills:
deployment of human resource through proper and efficient selection, training and development,
is called Human Resource Management.
The success of any organization largely depends on efficient human resource management, apart
from operations, marketing and sales, the HR department manages all the efficient people
working in operations and marketing divisions in any organization.
Thus, HRM refers to a set of programmes, functions and activities designed and carried
out in order to maximize both employees as well as organizational effectiveness.
Human resource management is based on four fundamental principles:
1. Human resources are the most important assets important assets an organization has and their
effective management is the key to its success.
2. Organizational success is most likely to be achieved if the personnel policies and procedures
are closely linked to corporate and strategic plans.
3. Organizational culture, values and climate significantly influence managerial behavior and
exert a major influence on the achievement of excellence. Hence, continuous effort is needed
starting from the management in order to make the organisational culture acceptable.
4. Human 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 quality and effectiveness of the organization
is determined by the quality of the people that are employed. The resources of men money
material and machine are collected and coordinated through people. Without people organization
can not exist.
Success for most organizations depends on finding the employees with the skills to successfully
perform the tasks required to attain the companys strategic goals.
Management decisions and processes for dealing with employees are critical to ensure that the
organization gets and keeps the right staff.
HRM 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.
To meet the needs of the business and management (rather than just serve the interests of
employees);
To link human resource strategies / policies to the business goals and objectives;
To help a business gain the commitment of employees to its values, goals and objectives
OBJECTIVES OF HRM
1. SOCIETAL- To be ethically and socially responsible to the needs and challenges of the
society.
2. ORGANIZATIONAL-To bring organizational effectiveness and serve other departments.
3. FUNCTIONAL- To do the optimal utilization of the resources and respond to the need of
the organization.
4. PERSONAL-To assist employees in achieving their personal goals to motivate and retain
them thereby, enhancing the individuals contribution to the organization.
DEFINITION OF HRD
HRD DEALS WITH DEVLOPMENT & UPGRADATION OF HUMAN CAPITAL
(EXSISTING MAN POWERS UPGRADATION IN AN ORGANISATION).IT IS A LONG
TERM PROCESS.
HRD can be defined as A Set of systematic and planned activities designed by an
organization, to provide its members with the necessary skills to meet current and future
job demands. It is a part of HRM.
Thus, Human Resource Development deals with the training and the developmental aspect of
employees.
HRM IN INSURANCE
Under present market forces and strict competition, the insurance companies are forced to be
competitive. Contemporary 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 firms ability to manage people.
Organizational capability relates to hiring and retaining competent employees and developing
competencies through effective human resource management practices.
Indeed, developing a talented workforce is essential to sustainable competitive advantage.
High performance work practices provide a number of important sources of enhanced
organizational performance. HR systems have important, practical impacts on the survival and
financial performance of firms, and on the productivity and quality of work life of the people in
them.
Objectives and Importance of the Study
Liberalization in the Indian 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.
In 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 India and have
also tied up with various asset management companies.
All these developments have forced the insurance companies to be competitive.
What 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.
In this manner the management of human resources becomes very crucial.
Thus, this study on HRM practices in insurance companies was taken up.
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.
Factors Underlying Increased Interest in Human Resource Planning
Undoubtedly, 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. Uncertainty can interfere with
efficient operations, so organizations typically attempt to reduce its impact; formal planning is
one common tactic used by organizations to buffer themselves from environmental uncertainty.
How can output be improved your through understanding the interrelation between
productivity, work organisation and technological development? What does this mean for
staff numbers?
The principles can be applied to any exercise to define workforce requirements, whether it be a
business start-up, a relocation, or the opening of new factory or office.
Without this understanding, management may be unaware of how many good quality 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.
Having 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. But 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).
how the nature and extent of wastage will change during the run-down
Such 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.
If instead the CEO 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. It is often difficult and expensive to replace lost
quality and experience.
the present career system (including patterns of promotion and movement, of recruitment
and wastage)
This then can be compared with future requirements, in number and type. These will of course be
affected by internal structural changes and external business or political changes. Comparing
your current supply to this revised demand will show surpluses and shortages which will allow
you to take corrective action such as:
comprehensive data about current employees and the external labour market
If HRP techniques are ignored, decisions will still be taken, but without the benefit of
understanding their implications. Graduate recruitment numbers will be set in ignorance of
demand, or management succession problems will develop unnoticed.
2.) ORGANISING
Organizing resources can mean a variety of things. First, the manager is in charge of organizing
human resources. For example, a manager will need to be sure the appropriate employees are
hired. In addition, it is the managers responsibility to ensure the employees have the skills
necessary for the workplace. Organizing these employees, according to when they are needed
and how they are utilized, is a critical part of the managers position.
Job Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. Job Analysis is a process
where judgments are made about data collected on a job.
The Job; not the person: An important concept of Job Analysis is that the analysis is conducted
of the Job, not the person. While Job Analysis data may be collected from incumbents through
interviews or questionnaires, the product of the analysis is a description or specifications of the
job, not a description of the person.
Determining Training Needs
Job Analysis can be used in training/"needs assessment" to identify or develop:
training content
Compensation
Job Analysis can be used in compensation to identify or determine:
skill levels
Selection Procedures
Job Analysis can be used in selection procedures to identify or develop:
appropriate salary level for the position to help determine what salary should be offered
to a candidate;
interview questions;
Performance Review
Job Analysis can be used in performance review to identify or develop:
performance standards
evaluation criteria
duties to be evaluated
Methods
There are several ways to conduct a job analysis, including: interviews with incumbents and
supervisors, questionnaires (structured, open-ended, or both), observation, critical incident
investigations, and gathering background information such as duty statements or classification
specifications. In job analysis conducted by HR professionals, it is common to use more than one
of these methods.
Job evaluation is the process of systematically determining a relative internal value of a job in
an organization. In all cases the idea is to evaluate the job, not the person doing it. Job 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 equitable wage and salary system can be established.
top of the list has the highest value and obviously the job at the bottom of the list will have the
lowest value.
Classification 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. Separate 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.
One 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 are:
Even when the requirements of different jobs differ, they may be combined into a single
category, depending on the status a job carries.
The method oversimplifies sharp differences between different jobs and different grades.
When individual job descriptions and grade descriptions do not match well, the
evaluators have the tendency to classify the job using their subjective judgments.
instance, mental effort, receives the highest weight). In other words, wages are assigned to the
job in comparison to its ranking on each job factor.
Point method
This method is widely used currently. Here, 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. Jobs with similar point totals are placed in
similar pay grades.
6.) RECRUITMENT
Recruitment is defined as, a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce.
PURPOSE:
Determine the present and future requirements of the organization in conjunction with its
Help reduce the probability that job applicants, once recruited and selected, will leave the
SOURCES OF RECRUITMENT:
The sources of recruitment may be broadly divided into two categories:
1) INTERNAL SOURDES 2) EXTERNAL SOURCES.
Both have their own merits and demerits.
INTERNAL SOURCES:
Persons who are already working in an organization constitute the internal sources.
Retrenched employees, retired employees, dependents of deceased employees may also
constitute the internal sources. Whenever any vacancy arises, someone from within the
organization is upgraded, transferred, promoted or even demoted.
EXTERNAL SOURCES:
External sources lie outside an organization. Here the organization can
have the services of:
(a) Employees working in other organizations;
(b) Jobs aspirants registered with employment exchanges;
(c) Students from reputed educational institutions;
(d) Candidates referred by unions, friends, relatives and existing employees;
(e) Candidates forwarded by search firms and contractors;
(f) Candidates responding to the advertisements, issued by the organization.
7.) SELECTION:
PURPOSE:
The purpose of selection is to pick up the most suitable candidate who would meet the
requirements 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, qualifications, skills, experience, etc. the needs of the job are matched with the
profile of candidates.
THE PROCESS:
Selection is usually a series of hurdles or steps. Each 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 interviews:
Several types of interviews are commonly used depending on the nature and importance of the
position to be filled within an organization.
In a non directive interview the recruiter asks questions as they come to mind. There is no
specific format to be followed.
In a patterned interview, the employer follows a pre-determined sequence of questions. Here
the interviewee is given a special form containing questions regarding his technical competence,
personality traits, attitudes, motivation, etc.
In a structured or situational interview, there are fixed job related questions that are presented
to each applicant.
In a panel interview several interviewers question and seek answers from
one applicant.
The panel members can ask new and incisive questions based on their expertise and experience
and elicit deeper and more meaningful expertise from candidates.
Interviews can also be designed to create a difficult environment where the applicants
confidence level and the ability to stand erect in difficult situations are put to test. These are
referred to as the stress interview.
This is basically an interview in which the applicant is made uncomfortable by a series of, often,
rude, annoying or embarrassing questions.
Steps in interview process:
Interview is an art. It demands a positive frame of mind on part of the interviewers. Interviewers
must be treated properly so as to leave a good impression about the company in their minds. HR
experts have identified certain steps to be followed while conducting interviews:
8.) PLACEMENT:
It means assigning suitable jobs to selected candidates so as to match employees qualification
with job requirement
Placement is a process of assigning a specific job to each of the selected candidates. It involves
assigning a specific rank and responsibility to an individual. It implies matching the requirements
of a job with the qualifications of the candidate.
9.) INDUCTION:
It involves familiarizing the new employees with company, the work environment and existing
employees so that the new people feel at home. Once 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.
Induction 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 quickly and happily and stars
work.
Induction is designed to achieve following objectives: -
2) Proper induction facilitates informal relation and team work among employee.
3) Effective induction helps to integrate the new employee into the organization and to develop a
sense of belonging.
5) A formal induction programme proves that the company is taking interest in getting him off to
good start.
Paired comparison method: - Paired comparison method helps make the ranting method more
precise. For every trait (quality of work, quality etc), Pairs are made and every subordinate is
compared with every other subordinate.
Forced distribution method: - Forced distribution method is similar to grading on a curve. With
this method, manager place predetermined percentage or rates in to performance categories. For
example you may decide to distribute employees as follows:
15% high performance
20% High average performance
30% average performance
20% low average performance
It is the process by which employees learn knowledge skills and attitudes to further
organizational and personal goals.
In 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 required by a
person to perform a given task or job adequately and development is 'the growth of the
individual in terms of ability, understanding and awareness'.
Within an organization all three are necessary in order to:
Provide the conventional training of new and young workers (e.g. as apprentices, clerks,
etc.);
Training and development managers and specialists create, procure, and conduct training and
development programs for employees. Increasingly, executives recognize that training offers a
way of developing skills, enhancing productivity and quality of work, and building worker
loyalty.
Enhancing employee skills can increase individual and organizational performance and help to
achieve business results. Increasingly, 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 quality employees and can lead to business growth.
Other 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, require new skills. In
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, Web video-ondemand, or self-paced or self-guided instructional guides. For 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 requiring 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 employees 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 groom 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.
In 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.
It is the process of developing managerial talent through programs.
12.) DEVELOPMENT:
It covers not only those activities, which improve job performance, but also those which bring
about growth of the personality; 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. In organisational terms, it is intended to equip 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. Various techniques of
management development include:(a) Management on-the-job training.
(b) Off the job training.
Managerial on-the-job training methods include job-rotation, coaching/understudy approach
and action learning.
Job rotation means moving management trainees from department to
broaden their understanding of all part of the business and to test their
abilities.
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.
Coaching/understudy approach: Here the person workers directly with the senior manager or
with the person he or she is to replace; 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. Several trainees may
work together as a project group or compare notes and discuss each others projects.
Roll Playing: - 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. When 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 trainees skills in areas like leadership and delegation.
13.) COMPENSATION: -
It refers to fair and equitable remuneration to employees for their contribution to the attainment
of organizational objectives.
Compensation 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. It 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 & have
a great impact in motivating employees. The system of compensation should be designed in such
a way that it achieves following objectives:
(1) Capable employees are attracted towards organisation.
(2) Employees are motivated for better performance.
(3) Employees do not leave employer frequently.
It consists of:
a) Wages and salary administration
Base compensation includes monetary benefits to employees in form of wages or salaries. The
term wage 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 Wages may be based on hourly, daily, weekly or even monthly basis
The term salary means compensation to office employees, foremen, managers & professional &
technical staff.
It is based on weekly, monthly &yearly basis. Thus time period for which salaries are paid is
generally higher than in case of wage payments.
Wages may be based on number of units produced (i.e. piece wage system) or time spent on job.
But salary is always based on time spent on job.
2) Bargaining Power: - Where 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.
3) Cost of living: - Wages of workers also depends upon the cost of living of the worker so as to
ensure him a decent living wage. Cost of living varies under deflationary and inflationary
pressures. Where labour unions are strong and employer do not show enough awareness, here
wage are adjusted according to cost of living index numbers.
4) Condition of product market: - Degree of competitions prevailing in the market for the
product of the industry will also influence the wage level. For 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.
5) Comparative Wages: - Wages paid by the other firms for the same work also influence the
wage levels. Wage 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.
6) Ability to Pay:- Wage 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.
(7) Productivity of labour: - Higher 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.
(8) Job Requirements: - If a job requires 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
require the same degree of skill, responsibility or risk.
(9) Govt. Policy: - Since the bargaining power of the workers is not enough to ensure fair wages
in all industries, the Govt. has to interfere in regulating wage rate to guarantee minimum wage
rates in order to cover the essentials of a decent living.
(10) Goodwill of the company: - A few employers want to establish themselves as good
employer in the society and fix higher wages for their workers. It attracts qualified employees.
In addition there are other important factors which affect the individual differences in wage rates.
These are:
1). Workers Capacity and Age
2). Educational qualification.
3). Work experience.
4). Promotion possibilities.
5). Stability of employment
6). Demand for product.
7). Profits earned by the organisation.
8). Hazards involved in work etc.
b) Employee benefits also called benefits in kind; also called fringe benefits, perquisites, or
perks are various non-wage compensations provided to employees in addition to their
normal wages or salaries.
Some of these benefits are: 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.
Perquisites:
The term perks is often used colloquially to refer to those benefits of a more discretionary nature.
Often, perks are given to employees who are doing notably well and/or have seniority.
Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work
time (golf, etc.), stationery, allowances for lunch, andwhen multiple choices existfirst
choice of such things as job assignments and vacation scheduling. They may also be given first
chance at job promotions when vacancies exist.
14.) MOTIVATION:
occupations but as much as 50 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. Hence 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 HRM process. Why? Because human behavior is complex and difficult to
understand. Trying to figure out what motivates various employees has long been a concern
of behavioral scientists. However, research has given some important insights into employee
motivation.
First of all, one must begin to think of motivation as a multifaceted process - one that has
individual, managerial, and organizational implications. Motivation is not just what the
employee exhibits, but also a compilation of environmental issues surrounding the job. It has
been proposed that one's performance in an organization is a function of two factors: ability
and willingness to do the job. Thus, from a performance perspective, employees need to have
the appropriate skills and abilities to adequately do the job. This should have been
accomplished in the first two phases of HRM, by correctly defining the requirements of the
job, matching applicants to those requirements, and training the new employee on how to do
the job.
But there is also another concern, which is the job design itself. If jobs are poorly designed,
poorly laid out, or improperly described, employees will perform below their capability.
Consequently, HRM must look at the job. Has the latest technology being provided in order
to permit maximum efficiency? Is the office setting appropriate (properly lit and adequately
ventilated, for example) for the job?
Are the necessary tools readily available for the employee use? For example, If 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.
While not trying to belittle the problem with such an example, the point should be clear.
Office automation and Industrial engineering techniques must be incorporated into the job
design. Without such planning, the best intention of managers to motivate employees may be
lost or significantly reduced.
Once 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.
Some 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. While 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.
autonomous work groups. Job satisfaction is a very important attribute which is frequently
measured by organizations. The most common way of measurement is the use of rating scales
where employees report their reactions to their jobs. Questions relate to rate of pay, work
responsibilities, variety of tasks, promotional opportunities the work itself and co-workers. Some
questioners ask yes or no questions while others ask to rate satisfaction on 1-5 scale (where 1
represents "not at all satisfied" and 5 represents "extremely satisfied").
In todays 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.
Todays typical professional may no longer have an undivided loyalty and commitment towards
his job. Therefore, it is incorrect to believe that an employees 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.
One of the typical propositions held by most people connected with HR is that job satisfaction is
positively associated with job performance. Does a satisfied employee always produce
more? It may be wrong to presume and take for granted a fictitious linkage between job
satisfaction and employee productivity in all cases.
In some cases, one may be shocked to find that while the so-called satisfaction 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 satisfied or happy employee may begin to develop an approach of self-complacency, and
an overall sense of well-being, and consequently, 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.
It refers to effective and efficient management of conflict arising in the organization. How is the
idea of conflict management related to Human Resource Management? The answer to this
question is much simpler than one may think. In a broad sense, the Human Resource Department
of all business organizations has one primary task: to deal with the people in the organization.
More specifically however, it is HR's job to ensure that productivity, efficiency, safety, fairness,
and smooth practices are executed both inside and outside of the organization.
With that said successful conflict management techniques are essential to ensure that both the
broad and specific duties of a Human Resource Department are carried out.
Since all people are different, each individual has different experiences and possess unique
perspectives. Consequently, different perspectives potentially lead to biases or differences in
opinion and these discrepancies are what essentially cause conflict. Some conflicts are
insignificant compared to others but nonetheless, managing even the smallest conflicts is no easy
task. However, several successful conflict management techniques can be utilized at all levels of
an organization in order to ensure that efficiency, safety, fairness, and smooth, ethical business
practices are executed.
One common misconception about conflict in general is that all conflict is bad. However, 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 "physical" conflict and altercations are undesirable. The bottom line from a business
perspective is that "healthy" conflict is desirable in any organization. "Healthy" conflict merely
shows that people are not holding back their ideas and beliefs. Furthermore, 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 bad; it is
merely a difference in opinion.
The well- being of the employee in an organization is affected by accidents and ill health both
physical and mental.
PHYSICAL HEALTH: Ill health of employees results in reduced productivity. Healthy
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 firstaid, complete medical care, etc. Many progressive organizations have well equipped dispensaries
with full-time and part-time doctors.
MENTAL HEALTH: In recent years, mental health of employees, particularly that of
executives, has engaged the attention of management. Mental 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 ways:
1. Psychiatric counseling
2. Co operation and consultation with outside psychiatrics
3. Education of company personnel in importance of mental health
4. Development and maintenance of effective human resource programme.
SAFETY:
Safety refers to absence of accidents. It is protection of workers from the dangers of accidents.
NEED FOR SAFETY MEASURES
COST SAVING: 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.
INCREASED PRODUCTIVITY: Safety promotes productivity. Employees in a safe
environment can devote time to improving quality and quantity of output.
MORAL and LEGAL: Safety is important on humane grounds too. There are legal provisions
relating to safety measures which have to be undertaken by the management.
WELFARE:
Welfare includes anything that is done for the comfort and improvement of employees and is
provided over and above the wages. Welfare 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. Employee 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.
Labor 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.
3. Labor welfare schemes are flexible and ever-changing. New welfare measures are added
to the existing ones from time to time.
4. Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
5. The purpose of labor welfare is to bring about the development of the whole personality
of the workers to make a better workforce.
PERSONNEL POLICIES
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. In other words, we can say that policies are related to the organizations
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.
(3) 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 discussions;
(4) To provide security of employment to workers so that they may not be distracted by the
uncertainties of the future;
(5) To provide an opportunity for growth within the organization to persons who are willing to
learn and undergo training to improve their future prospects;
(6) To provide for the payment of fair and adequate wages and salary to workers so that their
healthy co-operation may be ensured for an efficient working of the undertaking;
(7) To recognized the work and accomplishments of the employees by offering non- monitory
incentives; and
(8) 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.
(ii)
(iii)
(ii)
(iii)
(iv)
(ii)
Periodicity of transfer.
(iii)
(iv)
4. Compensation Policies
(i)
(ii)
Incentive Plans.
(iii)
Profit Sharing.
(iv)
Non-Monetary Rewards.
Handling of Grievances.
(ii)
(iii)
(iv)
Discipline.
(ii)
Safety programme.
(iii)
(iv)
Human resource is one of the natural resources of any country's economy. It is the wealth of the
country. In 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
Human Resource Management.
The success of any insurance company largely depends on efficient human resource
management, apart from operations, marketing and sales, the HR department manages all the
efficient people working in operations and marketing divisions in any organization.
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 HRD, which includes the concept of HRM.
2. In view of the changes in the political scene in the recent past, seeping changes are expected to
take place in the insurance industry. It is expected that only a few insurance companies will
remain after a series of amalgamations and mergers, not only in the Indian insurance industry,
but also at the international level.
3. Emergence of new private sector insurance companies, competition and self-regulation has
necessitated efficient Human Resources Management in insurance companies. HRM is a
continuous process, involving selection, recruitment and training on an "on going basis" for the
staff and their deployment in the right place. The activity is called HR development.
2. It is possible through professionalization, which is an internal part of HRM. The staff should
be motivated and encouraged to practice professionalism for their personal growth and thus
contribute to the organization's growth.
3. Building efficiency is, therefore largely dependent on the best selection process adopted by the
HR department. There is imperative need to build up skills within an organization for the
successful managing of available HR.
4. Insurance companies have vast human resource specialized in multiple disciplines like
technology, law, sales, underwriting, administration, risk management etc.
The basic function of HR is to manage them efficiently for continuous success.
For building up better efficiency in insurance sector, HRM have to follow the below two
functions:-
One of the important functions of HR department is to ensure proper definition for workers in
the insurance companies.
The staff should know about the vacant positions and the skills required 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 required skills is called job assignment.
If this function is not properly performed by the HR department, people in all departments will
be in a chaotic situation. This will impair their performance and subsequently customer service.
Improvement 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
requiring attention.
in
banks
have
to
respond
immediately
to
the
challenges.
This requires the HR department to work efficiently. Insurance companies are in the service
industry, where the raw material is HR.
HRM, therefore, emerges as a very basic and important element for strategic response to the
changes that are taking place in the insurance sector.
HR departments should take it seriously to formulate policies to meet these challenges.
HRD is a critical management function. Each manager should have initiative, awareness, coordination and facilitation to perform his role. This is critical function of HRM.
Owing to the changing insurance environment HR department should call for appropriate
response in equipping 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. It is the responsibility of the HR 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 HRM 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 HR 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
HR
department.
With regard to the accountability for non-performance and for the mistakes, the HR department's
intervention is a must for establishing the facts of each case. Proper judgment "with impartial
attitude helps develop satisfaction among the staff members.
Before punishing for mistakes and non-performance, a certain kind of enquiry is required by the
HR department. In the present scenario, particularly in the new private sector insurance
companies, dismissals are taking place arbitrarily without proper enquiry 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. It is the
first and foremost duty of the HR 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. In the process mistakes are bound to occur. Committing mistake is a way of
learning. These are not to be treated as sin by the management. Otherwise, the decision making
process will be vitiated.
In such situations the HR department plays a crucial role in adopting proper strategies and in
responding correctly to the warranted situation.
HRM will play a significant role in handling situations while awarding punishments to
employees without impairing others' efficiency.
In human resources context, turnover or labor turnover is the rate at which an employer gains
and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the
rate of traffic through the revolving door." Turnover is measured for individual companies and
for their industry as a whole. If 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. High 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.
1. In the present scenario, the employee turnover has increased in the insurance industry,
specifically in the new private sector companies.
2. The main reason behind the trend is the recruitment of young people without experience.
3. They will be moving to other jobs after gaining experience, for higher salaries.
4. This usually has a bad effect on the work atmosphere of the organization.
5. The new private sector companies have become a training ground for the new and fresh
recruits.
7. The HR department should formulate suitable policies to retain the staff by providing
'incentives, rewards, and better increments every year. These policies will ensure organizational
efficiency.
9. HR and personnel departments of insurance companies should realize the importance of all
these aspects and help the organization in formulating correct policies. In this process, the HR
departments of all banks should realize the importance of recruiting experienced people in higher
positions to ensure utmost efficiency. It will increase the productivity and profitability of the
organization.
How to prevent turnover
Employees are important in any running of a business; without them the business would be
unsuccessful.
Continual training and reinforcement develops a work force that is competent, consistent,
competitive, effective and efficient. Beginning on the first day of work, providing the individual
with the necessary skills to perform their job is important.
Networking and strategizing within the company provides ongoing performance management
and helps build relationships among co-workers. It is also important to motivate employees to
focus on customer success, profitable growth and the company well-being. Employers 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.
The HR risk is another important aspect to be managed by the HR and Planning department.
Let's face it, owning a business today is about managing risk. Whether 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.
Of 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. It's the human
factor and you've had it since you hired your first employee. Simply put, the continued success
of your business can well rest on what an employee says or does. Actions taken, or not taken;
words spoken, or not spoken; 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. In 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 HR risk.
In this process, the insurance company may have to pay multiple individuals with similar
knowledge and experience to ensure protection against this risk.
Similarly, the company may have to face the risk of loss of key personnel, which is called the
risk of inadequate motivation among staff who manages the situation.
If the management offers inadequate 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. In such a case, the personnel will not co-operate in combating the risky
situation. In case a group incentive is given, individual motivation will be affected. Therefore in
such "HR risk" Situations incentives should be linked to short-term results and not to long-terms
ones.
It is the responsibility of the HR department to formulate proper policies to prevent such
situations, where "HR risk" may crap up due to the exit of skilled personnel from insurance
companies.
The Risk of Human Error
Because human error is a significant risk to businesses everywhere, management techniques
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. However, it is much more effective to
avoid the exposure altogether whenever possible. In order to avoid a risk you must first
recognize the hazard. In 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.
While a thorough background investigation can mean different things to different people, all
efforts should be focused on answering one basic question, "Is this person fundamentally who
and what they represent themselves to be?" There is no "one size fits all" answer to this question.
Different jobs demand different levels of investigative effort.
Employers are being held liable for the actions of their employees for what they "should have
known or could have known," and the actions they "should have or could have" 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 Supreme Court. Whether 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. Companies 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.
Investigate Carefully
As a general rule, entry-level positions don't require the same degree of screening that skilled
positions warrant. Nevertheless, all investigations should begin with, at a minimum: positive
identification of the individual; and a review of criminal records in the individual's current
county of residence.
More involved investigations can include:
A broad scale research of criminal records in any jurisdiction that an individual has lived
or worked in the past several years.
What 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 who's going to do it? We'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. In almost all cases, background screening should be contracted
out to a professional firm.
The simple fact is that while nine out of 10 people may be straightforward and forthcoming, one
out of 10 isn't.
Conducting 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,
"We didn't perform this investigation but we will gladly give you a copy of the report (as
required by law) and you can contact the reporting agency and lodge any complaint you feel is
warranted."
The ability to distance you and your company from the results of the investigation is a
tremendous advantage. Even 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 STUDIES
The company chosen for the project is FUTURE GENERALI INDIA LIFE INSURANCE.
The head office of the company is located in Mumbai.
ABOUT COMPANY:
Future Generali India Life Insurance Co. Ltd. is one of the rapidly growing Insurance
companies in India. The Company is a joint venture between the India-based Future Group and
the Italy-based Generali Group. Future Generali group is present in both the Life and Non-Life
businesses in India as Future Generali India Life Insurance Co. Ltd. and Future Generali India
Insurance Co. Ltd.
Generali Group was established in Trieste on December 26, 1831. It is an international group
working in more than 40 countries with insurance companies, financial companies and real estate
sectors. After doing business in Central Eastern Europe, Generali Group has started to develop
business in the principal markets of the Far East, including China and India. Generali Group
ranks among the top three insurance groups in Europe and the 30th largest company in the
Fortune 500 international ranking.
Quality Candidates
Cost savings
Faster recruitment cycles.
Incentives to current employees
On 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.
JOB POSTINGFor job posting they use Intranet.
Job Posting is an arrangement in which a firm internally posts a list of open positions (with their
descriptions and requirements) so that the existing employees who wish to move to different
functional areas may apply. It is also known as Job bidding.
It helps the qualified employees working in the organization to scale new
heights, instead of looking for better perspectives outside. It also helps
organization to retain its experienced and promising employees.
EXTERNAL METHODS:
1. FORMER EMPLOYEES-The company hires back its best ex-employees especially for
Senior Sales Manager post.
2. COLLEGES-From colleges they recruit candidates for Sales Manager & Sales
Executives posts. The minimum salary package for the freshers is 1.8 lacs for Area Sales
Manager,2.5 lacs for Sales Manager,3.5 lacs for Senior Sales Manager.
3. JOB FAIR-Recruiting method engaged in by a single employer or group of employers to
attract the large number of applicants to one location for interviews.
4. ADVERTISING- 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 CV or application form, etc). Where a business
chooses to advertise will depend on the cost of advertising and the coverage needed i.e. How far
away people will consider applying for the job. Advertising can be through both PRINT and
ELECTRIC MEDIA.
The company uses PASSES technique for selection.
P-Prospect
A-Approach
S-Seminar
S-Screening
E-Evaluation
S-Selection
PROSPECT-They check whether the candidate is fit for the job or not.
SEMINAR-The Company then conducts seminar. For major seminars they hire hotels
but for small ones they prefer companys training room.
EVALUATION-They give them basically the sales target, or evaluate them on the basis
of experience, age factor, communication skills. This is a kind of WORK SAMPLE
TESTING.
SELECTION-Finally they select the candidate on the basis of the results of evaluation.
SELECTION
INTERVIEWS:
They prefer STRUCTURED INTERVIEWS in which they prefer questions regarding family
background, work experience and interpersonal skills.
METHODS OF INTERVIEWS:
ONE-ON-ONE INTERVIEW-Applicant meets one by one with the interviewer.
Interview process takes place as follows:
REGIONAL BRANCH INTERVIEW-Regional branch manager takes the interview & his
decision to select or reject the candidate is final.
Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited,
one of India's leading multi-business corporations and New York Life International, the
international arm of New York Life, a Fortune 100 company. The company has positioned itself
on the quality platform. In line with its vision to be the most admired life insurance company
in India, it has developed a strong corporate governance model based on the core values of
excellence, honesty, knowledge, caring, integrity and teamwork.
Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line
with its values of financial responsibility, Max New York Life has adopted prudent financial
practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th
April, 2009 is Rs 1,786 crore.
Max New York Life 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 Company 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 quality of training. The company currently has around 71,229 agent
advisors at 715 offices across 389 cities.
The company currently has more than 10,494 employees.
2) TRANING PROCESS
Max New York Life 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. Max New York Life 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, New York
Life. The training program developed by New York Life in the United States is widely
recognized as the best in the insurance industry. They have customized this outstanding
program for the Indian market.
In the United States, New York Life had more members in the Million Dollar Round Table,
the worldwide organization of top professionals in the insurance industry, for 50 consecutive
years. Since 2001, Max New York Life has had more qualifiers for the prestigious Million
Dollar Round Table than all the other private sector insurance companies taken together.
3) MANAGEMENT LOYALTY
One of the many advantages of working with Max New York Life is that managers are not
allowed to sell insurance products to their own customers.
Compensation in management is derived entirely from the success of agents and the overall
growth of the organization.
Managers at all levels are totally committed to the success of agents and do not pursue any
conflicting goals.
4) PRODUCT RESEARCH
No organization can claim to have the number one product in the insurance industry for a long
period of time. It 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 Indian
market and are designed to meet an individuals needs at every life stage.
5) CONTRACT
The Agent's Contract 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 Max New York
Life at all times to help you earn a good income today and create a secure retirement for
tomorrow.
customer service and employee support. The same systems have been adapted for India to offer
simple, easy-to-understand illustrations for the most complex products.
Work Profile
This is an entrepreneurial opportunity with flexible working hours and the potential to earn
unlimited income without any capital investment. As an agent with Max New York Life, you
are a financial advisor, businessperson and your own boss. The only limit to your growth is your
own imagination and drive.
The Role:
Provide customized solutions for long term financial protection and wealth creation
Close sales
Provide after sales service and build references for future sales
Benefits
A career at Max New York Life has innumerable advantages. With low start up investment you
can become a part of a world-class organization and make a positive difference to peoples lives.
Our agents sell more policies and make more money than agents of any other life insurance
company. The financial rewards are in the form of
Referral commissions
Training reimbursement
CONCLUSION
The core function of HRM 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 quality of financial services provided.
Factors like skills, attitudes and knowledge of the human capital play a crucial role in
determining the competitiveness of the financial sector. The quality of human resources indicates
the ability of insurance companies to deliver value to customers.
Capital 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.
HRM strategies include managing change, creating commitment, achieving flexibility and
improving teamwork. The other processes representing the overt aspects of HRM, viz.
recruitment, placement, performance management are complementary.
HRM has a crucial role to play in insurance sector. It acts as backbone for the insurance sector,
because it only lays the structure for the organizations operations, functioning and working. Even
with the advent of high technology it will have a prominent role to portray.
ANALYSIS:
As it can be seen from the data collected and from the case studies that majority of the
insurance companies believe that investing in HRM is necessary in order to strengthen the
insurance sector.
Investing in HRM practices allows companies to strengthen their human resources.
Human resources are one of the most important resources in any organisation. Efficient
management of human resources is necessary for the success of an organisation.
Efficient HRM practices leads to employee satisfaction. Employees performance improves
which benefits the entire organisation.
Employees 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.
RESULT:
Thus our hypothesis investing in human resource can help a firm perform better is PROVED.
Bibliography
1.) Human Resource Management Text and Cases by K. Ashwathappa.