Case Incidence

HUMAN RESOURCE PLANNING IN LMH INSURANCE COMPANY

Ram Narayan began his career as a management trainee in a private organization. His special interest in studying human behavior and his background in psychology often made him analyze the emotional reactions and behavioral patterns of people around him. It was his ambition to become a human resource consultant in a reputed company. Thereafter, after his graduation, he took a diploma course in human resource management. When he came across an opportunity to enter the insurance industry, he joined an insurance company as a junior manager. Later on, he worked in different capacities in the HR department of four other insurance companies before working as the human resource manager for LMH Insurance Company. Within a short time, he gained considerable reputation in LMH. Some crucial decisions he had taken related to employee compensation and reward systems in the company paid off rich dividends in due course of time. He was hence considered a key member in the organization. As part of the human resource policy, Ram Narayan wanted to develop a lean structure for the organization. LMH was in an expansion mode during those days. Ram Narayan felt that having a lean organization structure during the expansion period would help the company become more flexible in adapting to change. He believed that a fast growing organization should have a limited number of personnel.

Questions
1 What decisions Ram Narayan has taken related to employee compensation and reward system? 2 How could lean structure of an organization made? 3 If you are in the place of Ram Narayan, what would you do?