Guru Gobind Singh Indraprastha
University,New Delhi
In the partial fulfillment Of the award of the degree of BBA (Bachelor of Business Administration) Project guide:Ms. Manisha Gupta Submitted by:Vishal Sorout Enroll. No - 13414201710

Jagannath International Management School

I would like to thank my project guide Mr. Abhay Gera, Distribution and Training Manager RELIANCE Life Insurance, New Delhi for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated. I would like to thank Ms. Manisha Gupta, for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me at Reliance.

Once again my gratitude to the RELIANCE Life insurance. For their kind co-operation

I Vishal Sorout OF BBA IIIrd year of “JIMS-VK” hereby declare that the summer training report entitled “HR Practices at RELIANCE LIFE INSURACNE” is an original word and the same has not been submitted to any other institute for the award of any other degree.

Signature of candidate Vishal Sorout

Anil Dhirubhai Ambani Group.2012 as a part of my Summer Training. proprietary investments. and through various employee friendly strategies.06.. Today with a lot of MNC’s coming in India. the amount of competition has increased to such an extent that organizations have further aggrieved their stress on proper man management.08. a part of Reliance . Competent and motivated people can make things happen and enable an organization to achieve its goals. Reliance Life Insurance is an associate company of Reliance Capital Ltd. Reliance Capital has interests in asset management and mutual funds.2012 to 30. private equity and other activities in financial services. in terms of net worth. Reliance Capital is one of India’s leading private sector financial services companies. HR can help deliver organizational excellence by focusing on learning. This report is based on human resource practices in life insurance at Reliance Life Insurance New Delhi. and ranks among the top 3 private sector financial services and banking companies. quality. life and general insurance. .Introduction This report is a culmination of my project conducted during the period 20. Dynamic people can make dynamic organizations. Effective employees can contribute to the effectiveness of the organization. “PEOPLE” is the most important and valuable resource every organization has in the form of its employees. quality. teamwork. stock broking. profits and better customer orientation. Organizations have now started realizing that the systematic attention to human resources is the only way to increase organizational efficiency in terms productivity.

Though I had theoretical inputs in the class but this was the experience of actually implementing it. They were always ready to help and guide each other. Training Details and learnings: Corporate Culture: We got to learn various norms followed at a corporate house like: • Punctuality: Our industry guide Mr. My Learnings during the Project The entire project was a great learning experience.Research objective: To identify human resource practices applicable in the life insurance industry. Working in the field gave me the idea about the intricacies of the market and corporate culture of the company. This has helped me to inculcate an element of punctuality to my life. It give me a good exposure which I needed being a student. • Inter-personnel relationships: The employees at Reliance Life Insurance shared good inter-personnel relationships. Abhay Gera was very particular about our time of reporting to the office. He insisted that we should reach on time to office. There was a friendly .

• How to select the right customers: During our training our industry guide. According to him we can pitch only those customers who ready to listen to you. It becomes very difficult to pitch the product and generally leads to misselling. This resulted in clear understanding of product to the customer. • Preparation of sales pitch: Our industry guide told us to prepare a sales pitch of the product we would like to sell. • How to pitch a product: I learned during my training that if you want to pitch your products to a customer then first listen to his needs and then provide him/her with the best cover available. This taught me that this practice helps us to reach the right customers. This is a practice which is not followed by many sales managers but I learned that it plays a major role in making your task easy. before visiting him. These were: • Product training: A training was given to us about various products of Reliance. guided us to first call the customer and take his appointment stating the purpose of meeting. If we don’t have a clear understanding of a plan. we can’t explain it properly to the customers and this leads to their dissatisfaction. Sales pitch not only helped me to highlight the positive features of my plan but also it helped me to bring to customers notice all the facts regarding the plan. The features of these products were discussed in detail.atmosphere all around. . Marketing: We were trained about all the elements of marketing. This helped me to learn that one cannot be a good manager without the support of his colleagues.

I learned during my training that we have to make our customers understand the importance of insurance and induce a need of the same in him. This taught me to do my work honestly. direct mails. Advertising: Reliance life insurance is very less involved in advertising. etc. It covered the basic operations in insurance like underwriting. Proper training to agents: Agents should be trained properly about the products before they go for selling. customer care. The chances of misselling are more in case of ULIPS because agents are unaware of the initial allocation charges charged by the company. • Avoiding Misselling: Our industry guide always taught us to do our work honestly and avoid misselling of products. He directed us to explain each and every fact regarding a particular plan to the customer and sell the same if he/she is interested. which forms a core part in the success of any organization. presentations etc. Operations: Small classroom training about operations at Reliance Life Insurance office was also given to us. . radio announcements. Later the customer’s feel cheated and this in turn harms the image of the company. Incomplete knowledge about the product can lead to cases of misselling.• Handling customers: There is a popular saying that “INSURANCE IS NOT BOUGHT BUT IS SOLD”. They should give more emphasis on advertising which can be done by means such as television.

. This will help people build trust on Reliance Life Insurance. policy issuance. Reliance should work for improving its image.Services at Reliance Life: during our training when we went for calls and interacted with people we came to know that reliance has does not hold a good image for the services they provide. They should involve in other channels also. Diversification of channels of sales: Reliance Life Insurance does maximum of its business from Agency channel. Building Trust: During my survey I came to know that people have an inclination towards LIC. whereby the insurance company uses the bank sales channel in order to sell insurance products. This can be done by improving some of its main services like claim settlement. To progress and increase its market share it is very important for Reliance Life to improve its image. This can be done by highlighting the stability of Reliance Industries and immense success of Reliance Capital. This will help the company to progress. One such channel which is becoming popular and yields good results is Bancassurance. etc.

and through references to know their interest in business with company. There are two types of data collection method use in my project report. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. monitor marketing performance and improve understanding of market as a process. telecalling. Marketing research is the function which links the consumer. refine. For my project. interviews.Research Methodology Research always starts with a question or a problem. – Primary data – Secondary data. . Secondary data collection method was used by referring to IRDA and all other various websites. customer and public to the marketer through information. magazines and daily newspapers for collecting information regarding project under study. Its purpose is to question through the application of the scientific method.information used to identify and define marketing opportunities and problems generate. and evaluate marketing actions. I decided on primary data collection method for observing working of company and approaching customers directly in the field. monitor marketing actions.

1956 . with a capital contribution of Rs.Industry Profile About Insurance Sector The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. 1956. • • • . Calcutta. LIC formed by an Act of Parliament. viz.Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 5 crore from the Government of India. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost 190 years. LIC Act.The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company. Some of the important milestones in the life insurance business in India are: • 1912 . 1928 .245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. 1938 .The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

Insurance Companies in India Insurance is a kind of risk management basically used to evade the danger of a contingent loss. It involves an equitable transmission of the risk of a loss. Insurance in India covers the areas including loss caused by fire. from one entity to others for a premium. burglary and peril of sea. Some of the leading insurance companies in India are as follows: • • • • • • • • • • • • • • LIC Aviva Life Insurance Bajaj Alliance Birla Sun Life Insurance HDFC Standard Life Insurance ICICI Prudential ING Life Insurance Kotak Mahindra Metlife India Insurance Reliance Life Insurance SBI Life Insurance Shriram Life Insurance Tata AIG Life Insurance United India Insurance . death. There are many Insurance Companies in India.

000 crore colossus—an achievement which earned Reliance a place on the global Fortune 500 list. the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. he built. starting from the proverbial scratch. when Reliance Textile Industries Limited first went public. the first ever Indian private company to do so. the architect of India’s capital markets. Over the next three and a half decades. the proud patriot. the unmatched strategist.000).14. there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary. Dhirubhai Ambani. As with all great pioneers. and the champion of shareholder interest. In one lifetime. Undaunted. he converted this fledgling enterprise into a Rs 60. India’s largest private sector enterprise. Dhirubhai is widely regarded as the father of India’s capital markets. the leader of men.Company profile About Reliance Founder Few men in history have made as dramatic a contribution to their country’s economic fortunes as did the founder of Reliance. In 1977. he had a seed capital of barely US$ 300 (around Rs. Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard- . Shri. Fewer still have left behind a legacy that is more enduring and timeless. When Dhirubhai embarked on his first business venture. But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator.

. Through out this amazing journey. and went on to become India’s largest private sector enterprise. Reliance scripted one of the greatest growth stories in corporate history anywhere in the world. in exchange for their trust. substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind. promising them. and creating one of the world’s largest shareholder families. in the process making millionaires out of many of the initial investors in the Reliance stock.earned money in the Reliance Textile IPO. Under Dhirubhai’s extraordinary vision and leadership.

in India First corporation in Asia to issue 50 & 100 year bond in US debt assets cross 5000 crore 2001 in India 2003 Controlling stake in BSES Reliance Energy. Total Birth of Reliance 1st textile mill at Naroda Launch of Only Vimal brand Launch of 1st IPO for general public Total assets cross 1000 crore Twin IPO receive 1 million applications Sales cross 4000 crore & it became largest pvt. Revenues cross 2000 crore.Growth of Reliance Reliance was started from scratch in the year 1906 by Dhirubhai Ambani From here we start the journey of Reliance 1906 1971 1977 1985 1992 1993 1997 market 1998 2000 Total assets cross 3500 crore & revenues cross 14000 crore Group Profit Cross 2500 crores. Reliance India Mobile. Group revenues cross 60000 crore & it became largest business group largest Mobile services in India 2005 ADA Group acquired AMP SANMAR & RLI 2006-07 RLI ranked 6th at 930 crore . Sector co.

Sep2007 Became 1st company to cross 1 million policy in 2 years 2007 2008 2008 2012 It gets ISO certification Cross 2 million policies Reliance jumps to 4th position Reliance takes its stand at 3rd Biggest Life Insurance Co In India After tolerating many hardships Reliance is now ranked 4th among top financial services providers. .

Anil Dhirubhai Ambani Group .

The company is the realisation of our founder’s dream of bringing about a digital revolution that will provide every Indian with affordable means of communication and a ready access to information. These include mobile and fixed line telephone.Reliance Communications Limited Reliance Communications is India’s largest information and communications service provider with over 50 million subscribers. is a company under the Reliance . broadband.Anil Dhirubhai . Reliance Communications began operations in 1999 and has over 50 million subscribers today. Capacity Sales. It offers a complete range of integrated telecom services. Internet Solutions and Value Added Services. 200 carriers and 1.5 million retail customers in 50 countries across 5 continents. Reliance Infrastructure Formerly known as Reliance Energy and prior to that as Bombay Suburban Electric Supply (BSES). Reliance Globalcom. The flagship company of the Reliance – ADA Group. national and international long distance services. data services and a wide range of value added services and applications aimed at enhancing the productivity of enterprises and individuals. a division of Reliance Communications. The company serves over 1200 enterprises. Reliance Globalcom brings together the synergies of Reliance Communications Global Business encompassing Enterprise Services. Managed Services and a highly successful bouquet of Retail products & services comprising Global Voice. spearheads the Global Telecom operations of India’s largest Integrated Telecom Service Provider.

The company is headed by Anil Ambani. depository services. stock broking.000 shareholders. consumer finance and other activities in financial services. distribution of financial products. . It also runs power generation. life and general insurance.100 crore. Reliance Capital ranks among the top 3 private sector financial services and banking companies. Reliance Energy plans to increase its power generation capacity by adding 16. the net worth of the company will increase to about Rs 4. Reliance Capital has interests in asset management and mutual funds. private equity and proprietary investments. Noida. transmission and distribution businesses in other parts of Maharashtra. in terms of net worth. 1934. RCL has a net worth of over Rs 3. RCL was incorporated as a public limited company in 1986 and is now listed on the Bombay Stock Exchange and the National Stock Exchange (India). It is headed by Anil Ambani and is a part of the Reliance ADA Group. The company's corporate headquarters is situated in Sector 24. one of India's largest conglomerates. Reliance Capital Limited (RCL) It is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act.000 MW with investments of $13 billion.300 crore and over 165. The company is the sole distributor of electricity to consumers in the suburbs of Mumbai. Goa and Andhra Pradesh.Ambani Group banner. On conversion of outstanding equity instruments.

8.Reliance Mutual Fund is India's no. 22. Reliance Life Insurance is one of India's fastest growing life insurance company and among the top 4 private sector insurers. 2008.340 crores (US$ 4. Internet & mobile portals. DTH and Mobile TV. .5 billion) and total assets of Rs.1 Mutual Fund. Reliance Entertainment It is a wholly owned subsidiary of the Reliance Anil Dhirubhai Ambani Group spearheading the Group’s foray into the media and entertainment space. Reliance Money is the largest brokerage and distributor of financial products in India with over 2. IPTV. leading to direct opportunities in delivery across the emerging digital distribution platforms: digital cinema.6 billion) as of December 31.7 million customers and has the largest distribution network.900 crore at the end of December 2008.250 crore (US$ 1. Gaming. Reliance Entertainment’s core focus is to build significant presence for Reliance in the Entertainment eco-system: across content and distribution platforms. Reliance Consumer finance has a loan book of over Rs. Sports. 7. Reliance Capital has a net worth of Rs. Reliance Capital is a constituent of S&P CNX Nifty and MSCI India and also features in the Forbes list of World’s largest 2000 public companies. Reliance General Insurance is one of India's fastest growing general insurance company and among the top 3 private sector insurers. Music. The key content initiative are across Movies.

construct and operate power projects in the domestic and international having won 45 stations in the recent bidding. production.Reliance ADA Group acquired Adlabs Films Limited in 2005.480 MW. one of the largest entertainment companies in India. Reliance Health It is a company in the Reliance Anil Dhirubhai Ambani Group. it is presently developing 13 medium and largesized power projects with a combined planned installed capacity of 33. headed by the Indian businessman Anil Ambani. Reliance Power Limited It is a part of the Reliance Anil Dhirubhai Ambani Group. with many more to be launched in the coming months. which has interests in film processing. was established to develop. BIG 92.big927fm. Reliance Energy Limited. Reliance Entertainment has made an entry into the FM Radio business through Adlabs Radio www. . exhibition & digital cinema.7 FM is already India’s largest private FM radio network with 12 radio stations across the country as on 28 February 2007. Along with its subsidiaries. an Indian private sector power utility company along with the Anil Dhirubhai Ambani Group promotes Reliance Power.

. a tertiary care facility in Versova near Mumbai. and became operational in the first week of 2009.Its first partner health care facility will be the Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute. The 730 bed multi-speciality hospital underwent a 'soft' launch in early 2008 for employees and doctors that had accepted offers with KDAH. The hospital is named after the wife of Dhirubhai Ambani who was the founder of the Reliance group of companies.

stock broking. Reliance Capital is one of India’s leading private sector financial services companies. in terms of net worth. and ranks among the top 3 private sector financial services and banking companies. proprietary investments. In the year 2007. It is owned by the Anil Dhirubhai Ambani Group. a part of Reliance . The innovative products and services of Reliance Life Insurance have enabled it to become one of the respected insurance firms in India. life and general insurance. . Reliance Capital has interests in asset management and mutual funds.About Reliance Life Insurance Reliance Life Insurance offers you products that fulfil your savings and protection needs. Our aim is to emerge as a transitional Life Insurer of global scale and standard.Anil Dhirubhai Ambani Group.. Reliance Life Insurance is a subsidiary company of Reliance Capital Ltd. Reliance Life Insurance is an associate company of Reliance Capital Ltd. private equity and other activities in financial services. the Council for Fair Business Practices awarded a Certificate of Merit to Reliance Life Insurance for its excellence in the financial services sector.

• • • • • Reliance Whole Life Plan Reliance Special Term Plan Reliance Child Plan Reliance Endowment Plan Reliance Golden Years Plan Plus . Some of the Reliance insurance products also provide a reliable source of retirement income for the policy holders.Important facts • Reliance Life Insurance has more than 740 branches located in different parts of the country. The registered office of the firm is located in the commercial capital of India. popular insurance products that Reliance offers to customers in India. Mumbai. Popular Reliance Life Insurance Products There are various. Reliance Life Insurance is an ISO 9001:2000 certified company. The insurance firm offers products meant to suit the requirements of individuals and of corporates in India. Some of the major Reliance Insurance products have been listed below. • • • Purpose of Reliance Life Insurance schemes Reliance Life Insurance schemes and policies are aimed to provide financial security against different kinds of threats to the life of an individual or groups of individuals.

. Healthcare and Infrastructure.Reliance . Natural Resources. Entertainment. Energy. Media.Anil Dhirubhai Ambani Group also has presence in Communications.

transparent and profitable life insurance and pension plans. effective. Mission and Goals Vision Empowering everyone live their dreams. Our Goals Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below: • • • Emerge as transitional Life Insurer of global scale and standards Create best value for Customers. Shareholders and all Stake holders Achieve impeccable reputation and credentials through best business practices Achievements of Reliance Insurance Company Ltd. Mission Create unmatched value for everyone through dependable. .Vision.

1% in the Financial Year 2007-08 – from 3. post take over of AMP Sanmar business.3513 Crores. since inception.9% amongst private players in Mar'06 to 10.9% in April 07 to 8% in Feb 08.3% as of Mar'09. ( Source: IRDA) • Reliance Life has been one of the fastest gainers in market share growing from 1.7 Million policies in just 2 years of operation.• RLIC closed the last financial year with a New Business Premium of Rs. • Also continues to be amongst the fast growing Private Life Insurance Companies with a YOY growth of 195% in new business premium as of Mar’08. the company achieved a growth rate of 59% in terms of WRP against the private industry growth of 1%. the Company has been amongst the fastest growing Companies in the Life Insurance Industry achieving a growth rate of 28% in the last financial year against a market growth of 6%. This has resulted in the Company growing to becoming the 4th largest private player in just two years starting at position of 11. • The Company has been the fastest company to reach the 3 million policy mark and was the 3rd largest private insurer in terms of Policy count in 2008-09. • For 3 successive years. • A Company that has crossed 1. . In the Individual Business segment. • RLIC has been one of the fast gainers in market share in new business premium amongst the private players with an incremental market share of 4.

• The Company has also won the DL Shah Quality Council of India Commendation Award in the services category in Feb. • Accomplished a large distribution ramp-up in the Industry in a short span of time by opening 600 branches in 10 months taking the overall branch network above 740. • Reliance Life has accomplished a large distribution ramp-up in the Industry in a short span of time by opening 1145 branches in just over 2 year. • Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007Ceritificate of Merit in the Financial Services category by Council for Fair Business Practices (CFBP). • RLIC continues to be one of the two Life Insurance companies in India to be certified ISO 9001:2000 for all the processes.• Initiated Express Life – an Unique ‘Over the Counter’ sales process for Unit Linked Insurance Policies in the Industry. 2008 for its work on promoting 'self help channels for service' • Achieve impeccable reputation and credentials through best business practices Introduction to Topic .

Human resource management (HRM) HRM is the strategic and coherent approach to the management of an organisation's most valued assets . maintaining and compensating their services in tune with the job and organizational requirements.The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense. utilizing. HR practices build competencies and capabilities for superior and winning performances today and simultaneously create long term fertility for innovation of business ideas and strategies for future. developing their resources. HRM means employing people. Features .the people working there who individually and collectively contribute to the achievement of the objectives of the business.

HRM techniques. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs. are expressive of the goals and operating practices of the enterprise overall. assuming that virtually all wish to contribute to the enterprise productively. Sometimes even industrial relations and employee relations are confusingly listed as synonyms. . and as such should not be thought of as basic business resources. HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. and to provide the resources needed for them to successfully accomplish their assignments.Its features include: • • • • Organizational management Personnel administration Manpower management Industrial management But these traditional expressions are becoming less common for the theoretical discipline. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce. Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce. when properly practiced. As such. HRM is also seen by many to have a key role in risk reduction within organizations. such as trucks and filing cabinets. The field takes a positive view of workers. and that the main obstacles to their endeavors are lack of knowledge. although these normally refer to the relationship between management and workers and the behavior of workers in companies. and failures of process. insufficient training.

... Torrington and Hall (1987) define personnel management as being: “a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and.providing its members with payroll and benefits. So if we move to actual definitions. and administrating their work-life needs. ensures that the agreement is fulfilled" While Miller (1987) suggests that HRM relates to: ". secondly..those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" ...

" mostly to manage the paperwork around hiring and paying people. large organizations looked to the "Personnel Department. There is a long-standing argument about where HR-related functions should be organized into large organizations.Functions The Human Resources Management (HRM) function includes a variety of activities. they should always ensure that employees have and are aware of personnel policies which conform to current regulations. These policies are often in the form of employee manuals. eg. and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs. "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. recruiting and training the best employees. which all employees have. organizations consider the "HR Department" as playing a major role in staffing. Activities also include managing your approach to employee benefits and compensation. . and ensuring your personnel and management practices conform to various regulations. dealing with performance issues. More recently. training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. Many years ago. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part or full-time help. However. employee records and personnel policies. ensuring they are high performers.

however. and supervisors in addition to the staff of the Human Resources Department. selection and placement procedures will be continuously reviewed for all licensed. classified and administrative positions. It should be noted. it is the most difficult to detect. Recruitment. 1. From the initial contact with potential applicants to the final interview and selection of employees. Responsibility for human resource management includes all officials. That is the reason human resource policies and practices must be reviewed and corrective actions taken when they are found to inadvertently discriminate or offer less than equal opportunity to women. people of colour. Where blockages. examination. that systemic discrimination. or potential blockages. and people with disabilities from district employment and promotions. is most often the major barrier to equal employment opportunity. the Human Resources Department and its practices will address the following: 1. yet.1 Recruitment and Selection Process will not have the effect of blocking people of colour. women. Human resources policies and practices normally are not intended to discriminate or somehow have a disparate impact on women. are . Examination and Selection Recruitment. people of colour. or other protected groups. people with disabilities. administrators. or people with disabilities.Human Resources Practices The District's human resource management policies and practices pose the greatest potential for illegal discrimination. while unintentional.

(b) Experience in working with children and parents from different racial/ethnic minority groups.2 Targeted Recruitment. will be undertaken to address areas of under representation. and professional staff the district will give priority consideration to relevant. and. Recruitment activities will be inclusive rather than being exclusive. and applied consistently.3 Selection Criteria to be used in candidate recruitment. and people with disabilities who apply for employment. specialized. 1. pre established. women. All selection criteria are to be job-related. Additionally. parent and community groups. (c) Experience and training in multicultural education programs. This consideration will include. This expanded recruitment is to be focused on increasing the number of people of colour. such factors as: (a) Ability to relate to diverse student. in the selection of teachers. but not be limited to. administrators. thus increasing the probability of qualified candidates from underrepresented groups being selected to fill vacant positions. and people with disabilities in our society. corrective actions will be taken to make the process more inclusive to diversity.2. 1. screening. and qualitative training and experience that demonstrates ability to work with diverse populations. interviewing and selection should reflect the essential functions of the job.identified. as described in Section 6. . (d) Evidence that applicant is aware of and sensitive to the changing roles and perceptions of women. people of colour.

1. Targeted Recruitment Process Where the district has determined that people of colour. the district will initiate a targeted recruitment approach that includes. 1. but is not limited to. 2. 2.1 Request to Post a Vacancy The request to post a vacancy will be submitted to the appropriate HR administrator by the principal or supervisor. people with disabilities. women.1. will be monitored to ensure that they are unbiased and do not have adverse impact on people of colour. and gender balance to the extent possible. Selection committees will be made aware of the district's Work Force Diversity goals.4 Applications. the following steps: 2. or people with disabilities are significantly underrepresented in relation to their availability for specific job groups. Parents of students with disabilities will be included in the selection of special education teachers to the extent feasible and practical. including oral interviews. district goals.5 Selection Committees will include people of colour. and program needs.2 HR Review of Request The appropriate HR administrator will review the request to post a vacancy to determine if it is in an identified focus job group.6 Selection and Appointment of an employee will be based on job-related qualifications. merit. Tests Or Examinations for employment and promotion. the disabled or other protected groups. Reasonable accommodation will be made available upon request to ensure that persons with disabilities are not excluded from the application and examination process. women. A focus job group is one in .

but not be limited to. 2.2. the HR administrator will approve the request and initiate the vacancy announcement process.2.4 Elements of Targeted Recruitment Plan The targeted recruitment plan will be developed in conjunction with the hiring administrator(s) and will include. the following elements: a) Selective recruitment sources identified and personally contacted by HR or appropriate administrator b) Establishment of internet recruitment sources c) Extended timeframe for posting of positions d) Identification and use of supplemental factors related to cultural competency or bilingual/ bicultural factors . 2. 2.3 HR Initiates Targeted Recruitment The targeted recruitment plan developed in conjunction with the hiring administrator(s). or the appropriate components of the pre established plan are implemented.1 If the vacancy is not in a focus job group. men) or minorities are determined to be significantly underrepresented in relation to their availability in the relevant labour market. the HR administrator will notify the hiring administrator that it is necessary to jointly develop a targeted recruitment plan for the vacant position.2 If the vacancy is in an identified focus job group for which there is not a pre-established targeted recruitment plan. 2.which women (and in some case.

Principals and department directors are encouraged to use staff. building principal. Selection Committees The district supports broad-based involvement in the hiring and selection process. 3. people of .3 The Human Resources Department will design and provide training and materials for administrators and selection committee members that will ensure they are familiar with and understand their obligations and responsibilities as part of the selection process. 4. 3.) will ensure that the hiring process is consistent with the board's workforce diversity policy and this Work Force Diversity Plan. the hiring administrator will ensure that the committee's actions do not conflict with board policies or this plan. Affirmative Action Affirmative action does not end when the employment process has resulted in placement.f) Definition and clarification of "essential functions" of the position g) Ongoing review and monitoring of applications by HR h) Use of community persons and/or current and retired teachers/administrators as consultants/resources to assist in identifying and recruiting potential applicants 3. parents. 3. and students as appropriate in the screening and interviewing process to fill position vacancies. Although the major thrust of affirmative action is the identification and elimination of barriers that preclude the hiring of women. community.1 The hiring administrator (department director. etc.2 Where the hiring administrator makes use of a selection committee in the hiring process.

colour, and other disadvantaged persons, its subsequent and logical efforts must be directed towards fair and equitable treatment of all employees, the application of consistent human resource management practices, and the provision of equal opportunities for promotion and advancement. The administration of sound and equitable human resource policies and practices in a consistent manner will contribute greatly toward accomplishing the goals of workforce diversity. 5. Job Classification Job classification is the organization and grouping of similar positions in the district into groups or classes on the basis of similar, or related, duties, responsibilities, and qualification requirements. The need for job classifications is apparent not only in connection with equitable compensation levels but also in matters of selection, placement, promotion, transfer, and training. The general objective of job classifications and the job classification plan is for efficient management of functions, but just as important is the equal treatment of employees in terms of appointments, pay, opportunities for training and advancement. 5.1 Job classifications will continually be reviewed and modified to ensure qualification requirements are job related and are not barriers to qualified people of colour, women, and people with disabilities in seeking employment and promotions, and that selection criteria are consistent. 6. Compensation and Benefits The Equal Pay Act requires that equal wages and salaries be paid for substantially equal or similar work performed by men and women. Title VII requires equal pay regardless of race, national origin, religion, or sex. The more subtle type of pay discrimination is perhaps the most difficult to deal

with because of its historical entrenchment in the personnel and pay system, as well as stereotypical value judgments placed on the type of work and who does it. Despite the increasing number of women in the labour force, the U.S. Department of Labour continues to report pay gaps between men and women, and racial/ethnic minorities and non-minorities. It provides that all benefits and conditions of employment shall be equally available without discrimination to all employees - male and female. This includes medical, hospital, accident and life insurance, retirement benefits, leaves and other terms or conditions of employment. 6.1 The Human Resources Department will periodically review and monitor on an ongoing basis the wage and salary distribution to identify discrepancies in pay between men and women and racial/ethnic minorities and nonminorities. 6.2 The Human Resources Department will ensure that all benefits and conditions of employment are equally available without discrimination to all employees, including opportunities for transfer or reassignment that may affect an employee's compensation and benefits. 7. Training and Development Training helps to equip employees for higher responsibilities or to diversify their skills. Administration and employees share responsibility for the learning experiences that are presumed to develop from training. As the demographics of the district and community continue to change, it is important that all employees, but especially those in supervisory and managerial roles, be provided training in cultural competence, and combating prejudice, racism and harassment.

7.1 The district will continually explore and design training and internship programs directed towards preparing minority and women candidates for higher level positions. 7.2 All supervisors and managers will be provided cultural competency and diversity training that focuses on awareness and skill development, as well as prejudice reduction. 8. Promotion and Advancement Promotion is generally defined as a move to a position or classification having a higher pay grade or salary range. Equal opportunity for promotion and advancement applies to all aspects of employment and to all levels of the organizational hierarchy. This means that people of colour, women and people with disabilities must be considered for higher level administrative and supervisory jobs for which they are trained or are otherwise qualified. 8.1 The district will review its policies and practices pertaining to internal promotions and take actions to correct any "glass ceiling" barriers which inhibit advancement of women and people of colour. 8.2 In considering supervisors and managers for promotion and advancement, consideration will be given to the supervisor's or manager's record in promoting and supporting the District's workforce diversity policy. The Human Resources Department will establish a process for acquiring and documenting information related to this provision. 9. Retention and Attrition 9.1 In addition to taking steps to ensure that racial/ethnic minorities, women, and people with disabilities are provided equal opportunities for hiring and promotion, it is equally important that as individuals from these groups move

9.into areas where they are unrepresented or significantly underrepresented that their experience in the workplace is a positive one.2 Schools and departments will ensure that employees from diverse backgrounds are not subjected to behaviours or attitudes that send the message they are unwelcome or that they do not belong. . This is particularly true as persons from underrepresented groups move into job categories from which they traditionally have been excluded or discouraged from pursuing.

Attrition rate is the rate of shrinkage in size or number. It is the mathematical representation of the attrition in a particular organization or an institution. The word Attrition means. it employees a new employee and thus needs to incur costs on them. Thus the following costs: A. Retirement. a reduction in the number of employees through resignation or separation at the employees will.Analysis of Attrition Trends What is Attrition? Attrition has been a major concern for most of the companies in the current competitive scenario. Attrition leads to dual loss to an organization: • Firstly. • Secondly. Recruitment cost The cost to the business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening: • • Time spent on sourcing replacement Time spent on recruitment and selection . VRS and employee leaving due to end of contract are not considered as attrition. company loses on a talent and thus costs incurred on them are a waste.

and can be largely classified under the following heads: • • • • Training materials Technology Trainers’ Time C. if any & Training/ramp-up time Background/reference screening • Recruitment cost for the new recruit to replace the employee leaving B.• • • Travel expenses. the expenses incurred on training of the employee who is leaving should be taken as well as that to be incurred to train the new employee is also to be considered. This will mean direct and indirect costs. To estimate the cost of training and developing new employees. if any Re-location costs. Training and development cost To estimate the training and development costs. cost of new hires must be taken into consideration. Administration cost They include: • • • Set up communication systems Add employees to the HR system Set up the new hire’s workspace .

access cards. But even these pale in comparison to the kind of turnover that the insurance industry witnesses with its agency force. Conservative estimates put the attrition rates at 35-40 per cent. An organization thus tries to retain its work force. The dropouts begin. Once the initial list of potential customers such as close relatives.• Set up ID-cards. friends and neighbours is exhausted. etc. new agents confront failure. Most agents or advisors who join in still needs to be sold to a reluctant populace. the climb for an agent is uphill. The opening up of the sector five years ago provided insurance agents with new opportunities and an image makeover as "life insurance advisors". Insurance sector faces high rate of attrition When the rejections start and the doors start getting banged in the face. getting full reward for the hard work" and other such motivational spiel. meet reality soon enough. Thus it can be clearly evident from the above that loosing an employee causes an organization a large amount of expenses. . You might have heard of high job attrition rates of between 15 per cent and 20 per cent in the software sector. But little has changed in the basic nature of the business . spurred by dreams of "working at one's own hours.

" He attributes it to the high expectations on the part of the agents. 1 lakh. one has to acknowledge that it is a high-pressure job. But.Even meeting the minimum requirement of bringing in two viable insurance proposals every month proves daunting. the target in terms of sum assured is Rs. while private insurance companies are still struggling to break even. and says. "Last year. Insurance companies believe that adequate training will help in contain the problem in some measure. Rahul Sinha.000. . LIC. Agrees Mr. Most of those who drop out are non-performers". says. Besides. Sustenance requires constant networking and acquiring new relationships for your business. the attrition rate was much worse than 30 per cent. They say that in a business such as insurance one has to accept the fact that 20 per cent of the work force will bring in 80 per cent of their business. Vice-President (Marketing) at Kotak Mahindra Old Mutual Life Insurance Company. It has been a cause for worry and we are trying our best to stem it. This requires a lot of discipline. "Most people think that they can make a lot of money in a short span of time." Some insurance companies complain that the booming economy has caused the rampant poaching of insurance agents. it is as low as Rs. "The attrition rate is about 35 per cent in the first year of recruitment. the rising attrition rate is yet another challenge that they have to battle. Mr. 10. Lalit Kumar Dash. For some companies. For some others. Executive Director (Marketing). This goes down to about 18 per cent by the fourth year.

It is a paramount consideration for a HR team to think. employer's goodwill in the market. approximate 70% of the working population in India is not happy at all due to one of the aspect (as mentioned aforesaid) which is not fulfilled while working in an organization which caused higher attrition rate. In broad terms. current role's scope in the market & most important future stability with the organization. future growth. co-workers. In a survey. but now the time has been changed."Why our attrition rate is higher than other company?". Now a days this is one of the most important question which is asked by higher authority to HR people…. retirement & natural cause (death/illness).g. attrition is a situation which employer faces when employee leaves the organization due to job dissatisfaction. why people are vacating their positions. Still Human Resource team face the challenge due to wrong information provided during EXIT interview.Higher Attrition Rate - Major Challenge in HRM Employee attrition is one of the critical problems which is faced by an HR manager during these days. HR team conducts EXIT interview when an employee leaves the job to get the information about one's decision to leave an organization. In an ideal situation an employee consider multiple comfort level while working in an office for e. working condition. . Earlier it wasn't important for the organization. remuneration. Therefore. The company cannot afford to lose its best employee to competitors. whether their employees are committed or not. new opportunity in the market.

Reasons for Attrition From the exit interview forms and the comments of the HR Manager the overall reasons for attrition can be summarized as follows:  Better prospects outside the company in terms of salary and responsibilities  Lack of Team spirit  No career growth  No role clarity  Attrition due to competition  Lack of support from Superiors. .

Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. As soon as they feel dissatisfied with the current employer or the job. • Growth: No one joins an organization to just do the same work till the end of his career. So such strategies must be framed where an employee can see his bright future in the company. In prominent Indian metros. Keeping Good People. . they switch over to the next job. So an attractive compensation package plays a critical role in retaining the employees. or even for the second or the third best. its nature of business or the country of operation. but it is an effective de-motivator. If an employee does not see growth in his own organization. Importance of retaining employees remains the same irrespective of the size of the organization. there are high chances that he might opt for leaving the organization. • Compensation: It is said that money isn't a motivator. The only difference lies in realizing the fact that frequent employee attrition means there is something. It involves being sensitive to people's needs and demonstrating the various strategies in the five families detailed in Roger Herman's classic book on employee retention. They are not the ones who don’t have good opportunities in hand. The employees always have high expectations regarding their compensation packages. which needs immediate attention and cure.Retaining the Employees Employees today are different. there is no dearth of opportunities for the best in the business.

Based on the above five points. The organization culture should be such that encourages healthy relationship between all the employees. • Support: Sometimes not getting the right kind of support and cooperation also leads an employee to be frustrated and provokes him to leave the organization. .• Relationships: The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. • Environment: An organization needs to have an environment where individuals learn and get support from colleagues and seniors along with the healthy mixture of authority and responsibility. This should be taken care of by providing healthy work relationships. a retention strategy can be framed after understanding the reasons for attrition in a particular organization.


the HR as well as all the business/division heads need to join hands and come together and take actions. Thus it is recommended . growth. In order to reduce the amount of attrition.g. it could be concluded that there are problems related to compensation. • Career Graphs for employees: Many of the employees in their exit interviews form have mentioned that they do not see any personal growth in the organization.Retention Measures at Reliance Life Insurance At Reliance after analyzing the reasons of attrition. Knowledge gained should be shared with others. The following measures can be taken: • Learning Environment: The seniors in all the divisions should try to create an environment of learning in their division/department. The same kind of environment should be created in the whole organization. E. he should be encouraged to share the contents of the program with his colleagues through a presentation on the same. If an individual from the HR department has gone for a training program on Interpersonal Skills. work environment as well as relationships.

HR can organize gaming events between the various departments as well as within the various departments. For this. • Making employees accountable: There should be fairness in the working of the company. If an individual has made a mistake he should be made accountable for it irrespective of his relations with the seniors. . • Inculcate Team Work: All the employees need to trained and motivated to work as teams and not individuals. these can be done first at the departmental level and then at the organizational level. table tennis tournament. Employees spend almost 8-9 hours of the day at their work place. They can have events like chess tournament. This would bring enough confidence in the employee to stay with the company and motivate him to achieve the targets placed before him. it plays an important role in motivating the employees to work together. The HR can play a role here by bringing in rules of punishing the offenders. It is very important that the employees are given opportunities to have fun at work.that the superiors of employees should take the responsibility to show his subordinate a career graph projecting his growth in the next 5 years. When a combined vision is shown. quiz competition. • Fun at work: “All work and no play makes Jack a dull boy”. best of waste competition etc. They need to bring all the employees in the particular division together and show them the ultimate goal for which they all are working. This can be done with the help of the division heads.

• Increasing organizational transparency: There is a need for transparency in the working of the company. Training signals employees that the organization values their contribution. These would also mean increase in interaction between the employees which is again a requirement at Reliance Life Insurance. • Helping employees acquire new skills: There is an increasing need for keeping the employees updated about the new techniques and technologies. If this is not done. This has forced the employees to leave. and is willing to invest in upgrading their skills. This can be done at the initial level while recruiting the employee only if his / her personal goals can be aligned to the organizational goals. The employees should be given reasons and answers to the questions which arise in to their minds. start having grudges against others and spoil the organizational culture. The company thus needs to achieve a balance between the two. • Achieving a match between individual and organizational goals: Reliance Life Insurance at times expects its employees to subsume their individual objectives before the organizational ones. Thus there is a need for increasing the number of training programs which at this point of time are very less. they give it the name of a partial environment.This will enhance their sense of belongingness for their division/function as well as increase the interaction between and within the departments/divisions. .

With supportive managers and Head of departments employees think several times before they leave. and nurturing of their people. and the way they assign tasks including the clarity with which they give instructions. Thus a 3600 feedback system can be implemented for the senior level managers and corrective actions can be taken to improve the problem areas. social service club. Some managers may not realize that their coercive style. This would increase the interactions between employees from different departments.• Celebrations and Social and Cultural Networks: In some of the surveys and audits it has been found that employees get a sense of belongingness if the organization encourages some form of social networks. cultural programs. • Change of Styles through 360 Degree Feedback and Internal Customer satisfaction Surveys: Many times the style of manager has been responsible for employees in certain departments to leave. excessive task centeredness. sports club. HR at Reliance Life Insurance can encourage the formation of different clubs like the golf club. respect etc. The old style of "my-way-or-the-highway" style of . where the employees from all divisions can register as per their likings. These clubs can then have their own gatherings and interactions. team celebrations. When the person feels at home with a company he would think twice before leaving the company. These can be done with very little investments by encouraging employees to have picnics. to employees have tremendous impact on their staying with the company. social gatherings. celebrations and festivals etc. supportive. The supervisors must be prepared to be collaborative.

management is a thing of the past. Periodic employee satisfaction surveys can highlight the potential flash-points. Most new supervisors need training to understand what it really takes to retain employees. picnics etc. and enable the company to take corrective action. one day camps. • Measuring employee satisfaction: Obsessed with catering to the demands of their external customers. • Stress Management: The employees face a lot of stress in their day to day personal and professional life. His work can also be acknowledged by giving him/her a small token of appreciation for the work done. • Periodic rewards or gifts for work done: If an employee is appreciated for the work he does. yoga. Employees should be taught as to how they themselves can fight the stress that they are experiencing. So HR can take measures to reduce this stress level and improve the efficiency. This can be done by organizing seminars on stress reduction. This would bring a dual advantage to the company. Thus the employees should be motivated by appreciation from the senior level. the employees will realize that the company is taking the responsibility of the stress that are experiencing due to the company’s work. If the employees remain stressed out. it acts as a motivating factor for him to perform well at his work. companies ignore their internal customers. their efficiency is reduced. . Firstly. This ultimately benefits the organization.

After this the analysis can be done as to where is the maximum attrition happening and then finding out reasons for the same to form a retention strategy. So if the company wants to retain its employees it has to start taking responsibility of its employees. Attrition in any particular organization can be quantified by finding out the attrition rate for that organization. . we need to bring it to measurable terms. They need to see their own growth and have a feeling of belongingness in the company. But the results are worth it. HR needs to make the employees realize that they are an important part of the company. and resources. The employees cannot be retained only by giving them high pay packages. Calculating the Attrition Rate: “What cannot be measured cannot be improved’’ is an old management aphorism. • Today’s employees are different: They are the ones who have ample of opportunities.Secondly. energy. So if we want to improve attrition. their productivity will increase which will again benefit the company. Employee retention takes effort.

creativity and innovation. Yet. HR manager should give close attention to why attrition is occurring in the present.There is no standard formula to calculate the attrition rate of a company. . attrition of poor performers may also not be treated as attrition. of employees who left in the year / Average employees in the year) x 100 Conclusion: To devoid organization's growth. They are organization dreams. but they are not just machines but more than that. • Many firms may not include attrition of fresher’s who leave because of higher studies or within three months of joining. • In some cases. And this is the only way an organization can lower its attrition rate. hopes. ambitions. as a generalized formula the following can be used: Attrition = (No. And to retain these valuable assets is one of the surest ways to build an organization rather than just to go in global markets. People in organization are needed to perform the tasks. To ignore why people are leaving the organization is to ignore the organization greatest assets – its people. This is because of certain factors as: • The employee base changes each month.

Employees who go the extra mile by performing spontaneous behaviors that go beyond their role prescriptions are especially valued by the management.Innovative HR Practices Introduction Innovative HR practices build competencies and capabilities for superior and winning performances today and simultaneously create long term fertility for innovation of business ideas and strategies for future. Organ 1988). . This phenomenon is critical for organizational effectiveness because managers cannot foresee all contingencies or fully anticipates the activities that they may desire or need employees to perform (Katz & Kahn 1978.

The HR Professionals must have balance in terms of centralization or decentralization of HR practices are ethnocentric while others management be geocentric or regiocentric. Enhancing an organization’s competitive ability is increasingly critical and behaviors which may improve individual and organizational efficiency. Although there have been many studies of OCB in organizations. Graham & Dienesch 1994) because these types of action are purported to improve organizational efficiency.Work behavior that goes beyond the reach of organizational measures of job performance holds promise for long term organizational success (Van Dyne. is included. no known studies have examined the linkage of individual innovativeness with OCB where the effect of superior–subordinate as a mediator. effectiveness and adaptability (Organ 1988). Innovative hr practices All managers have heard and read countless times how to build teams. The HR policies must be integrated with business policies. Doing jobs beyond what is required without expecting to be rewarded is what is referred to in this study as Organizational Citizenship Behavior (OCB). empower your workforce and develop trust. become more valuable. The common place human resource practices prevalent across the entire business world are just as relevant to this business as any other. Tomorrow HR practices .

HR managers are expected to offer instant solutions for these issues and strategies. demographic changes and trends towards a service society and the information. Companies in such an environment either become competitive high performers or they die. from micro level issues where an individual employee needs hand holding to the macro issues pertaining to a global workforce and virtual teams. Employee Motivation in work place .In turn trends like these are changing the way firms are managed. The challenges facing the organization have never been greater Issues coming on the radar of an HR Manager today are diverse. As an HR Manager there are a number of areas where you might want to bring in an external consultant. globalizes competition. deregulation. Organizations today must grapple with revolutionary trends accelerating product and technological change. while forcing firms to cope with unprecedented product innovation and technological change. These trends have dramatically increased the degree of competition in virtually all industries.

Identify a project that you lack motivation about. But if you are lacking employee motivation in the workplace the effects can be dramatic. There are two types of obstacles . lack of energy. committed. In other words: Specific. Highly self-motivated. Let's use "Make some sales calls" as an example.practical and emotional. By following this simple three-step process you can create an action plan that will get you motivated again. Examples of practical obstacles are lack of time. Your goals should be SMART. Measurable. One of the simplest ways to get motivated is to create a Self-Motivation Action Plan. mistakes and high staff turnover are just some of the clues that motivation is an issue. Examples of emotional obstacles are lack of confidence or fear of failure or rejection. Agreed. . STEP 1: Clarify the Goal The first step of your Self-Motivation Action Plan is to be clear about the end result.A strong team needs individuals who are dedicated to giving their best at work. lack of initiative. resources or information. STEP 2: Identify the Obstacle The second step of your Self-Motivation Action Plan is to be clear about what is standing in your way. Realistic and with a Timescale. Low team morale. ambitious employees give the most to their company and get the most from their work. .

and building an organizational community that shares a common mission. But if it is serious. . start doing or delegate in order to create time?" If the obstacle is lack of confidence. STEP 3: Handle each Obstacle The third step of your Self-Motivation Action Plan is the most challenging. developing 21st century leaders and culture. Go through each obstacle and handle it. ask yourself "How can I create time for this? What do I need to stop doing. growing organization that knows where it wants to go. ask yourself "What am I afraid of? What is the worst thing that could happen?" Often the worst-case scenario is not as bad as you feared. willpower or unhealthy stress.Make a list on your Self-Motivation Action Plan of all the obstacles standing in the way of you achieving your goal. how can you reduce the risk of it occurring? What resources do you have that will help you? A clear Self-Motivation Action Plan will help you complete projects without adrenalin. If the obstacle is lack of time. and values. Innovative Human Resource Leader To join a dynamic. vision. To make a significant contribution to business results by applying my unique talent for creating strategic focus and alignment.

regions or organizations. we see a shortage of skilled people in strategic industrial areas. and may require co-ordinate efforts towards the benchmarking of knowledge management within different countries.Support needed for the Management of Change and Improvement of Human Capital Present industrial developments involve technology and organization. The available skills do not always correspond in quality and quantity to the skills required. Knowledge will increasingly bring a key competitive advantage within human resources. But how well is it understood? In a world where people's competencies and skill sets are described in paragraphs rather than in a few words and where media reports of salaries make us do a double-take to ensure that seeing is . This will entail enormous efforts in the field of education as well as a tremendous increase in continuous learning. when analyzing the workforce. and the implementation of learning schemes. production tasks are being automated to an ever greater extent while the demand for a qualified workforce is growing dramatically. Human Resource Management is much discussed in today's business world. Relevance of Human Resource Management The challenge of HR managers is to hunt for human talent and make sure the company selects the right person for the right job. This contrast will place a significant strain on our society. The technology trend indicates that unemployment will rise amongst unskilled workers. Moreover. the performance of both being highly dependent on human resources. At the same time.

it is becoming increasingly challenging to manage this high potential we consider as the country's asset. The shift in focus from traditional HRM to strategic HRM was inevitable. but in India. HRM today is required to take on a more strategic role in order to align itself with the organisation's business strategies. It is in a unique position to supply competitive intelligence that may be useful in the strategic planning process. the change has been more prominent in the last decade or so. Initially. Human Resource Accounting Over the years. One such major practice is the concept of Human Resource Accounting (HRA). Competitive advantage for an organisation lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies and rapidly respond to customer's needs and competitor's moves. in driving the firm's strategies. HR management can play a role in identifying and analysing external opportunities and threats that may be crucial to the company's success. some of the traditional HR practices have been revisited and analysed to evaluate their suitability in today's world. Today. the world saw a complete makeover in the way Human Resource Management in organisations was defined. managing the expectations and motivations of a skilled workforce has brought with it attendant complexities in terms of the need for robust HR practices and organisational procedures. the HR manager is expected to take on the mantle of a business partner along with managers of other line functions. after liberalisation. Over the past two decades. Earlier considered a support function for any business. one might .indeed believing. Hence.

A trend yet to catch up in the Indian industry. performance management. and manages him/her carefully. Organisations have been claiming that their employees are their most valuable assets. rather than expense heads in their profit and loss statements. To make sure that a company selects the right person for the right job. where investments in human resources are now included as assets in a company's balance sheet. as also the economic value of people in an organisation. The spate of downsizings and increasing job insecurity notwithstanding. human talent is undoubtedly the most important asset today. HRA represents a way to gauge how strong and profitable an organisation's workforce is. it has been extensively embraced in the West. recruitment. processes like competency mapping are gaining ground. and succession planning.hesitate to accept a concept which tries to put a monetary value to human beings. Infosys. Competency mapping is a process of identifying key competencies for a particular position in an organisation. How does one attach a number to a person's capabilities? However. In . the resurgence of interest in the area of HRA is perhaps testimony to this approach. with a few exceptions such as BHEL. and then using it for job-evaluation. training and development. SBI and Reliance industries. HRA also involves accounting for investment in people and their replacement costs. The signals are clear — the employee is an asset who can be groomed to bring in future profitability — an asset which can define the company's image in the market today. Competency Mapping With the growth of the industries in the `knowledge-verticals'.

newer courses in cross-cultural management. in India. this can be an extremely robust tool to manage an organisation's performance. Today's manager is expected to wear multiple hats — that of a leader. where. and international HRM attempt to familiarise the students with new concepts. counsellor. the time has perhaps come where it needs to be treated as a line function with every manager having HR activities as part of his line responsibilities. Merely renaming the function is however not going to be sufficient. change management. the curriculum followed in the HR area of specialisation reflects a response to these changing trends. Despite the growing level of awareness. however. in order to train their students to meet the changed expectations of the industry.conjunction with the balanced scorecard. . in addition to incorporating the newest trends and best practices in the traditional HR course curriculum. As far as the HR function is concerned. rather than treating HR as a separate. support-providing activity only. mentor — in addition to his/her `technical' responsibilities. would have to have a thorough grounding in concepts and processes of HR. It has become fashionable among organisations to use terms such as HRD (Human Resource Development) and HCM (Human Capital Management) as being representative of the changing trends in HR practices. coach. competency development and mapping still remains in the nascent stages of implementation. The need of the hour is for premier institutes such as the IIMs. At the IIT-Madras Department of Management Studies. irrespective of his/her functional area of specialisation. internal change agent. IITs as well as other professional institutions to rise to the occasion and re-design their curriculum and pedagogical methods in consultation with the industry. This would entail that every manager.

He is also required to submit various documents to support this information.Human Resource Practice followed by Reliance Life Insurance Joining Process Upon joining. the employee is required to fill in a “Check In form” and provide relevant information. . Employees need to fill in this form on the date of joining itself.

While the Indian economy remains a growth economy. maintains personnel file for all the employees. . These can be used by the organization for any further references. it is impossible for anyone to remain insulated from this global phenomenon. All the other documents given by him to the HR during the course of his employment are also maintained along with all the communication through mails. These files consist of all the documents relating to the employees starting from his resume till his check in form. On joining the organization. the employee is given a 6 digit unique number which is called the employee no. An e-mail ID is created for all the management employees by the IT department which can be used by the employee. With the economy slowing down in first half of 2008-09 and slipping further in the second half. On receiving the appointment letter. If not he is given a clear idea of the same. Reliance Life Insurance have had to initiate necessary measures to navigate the environment. The original copy is retained by the employee and one signed copy is handed over to HR for personal file and pay roll. As part of its ongoing process of reviewing our Human Resources policies & aligning them with external market realities. Reliance Life Insurance is announcing the following changes to our HR Policies in the Employee handbook. the HR makes sure that the candidate is completely aware about his job profile and his reporting line. This becomes his identity in the organizations database.The appointment letter is issued upon joining which clearly specifies the conditions of employment. The last financial year has been an unprecedented one. The HR dept.

Leave will be credited on pro-rata basis for each month of service. . Leave calendar shall run from 1st January to 31st December. General Availing Leave should be done in a planned manner. Leave policy The objective of this policy is to describe the leave entitlements and the terms and conditions governing the same to all employees of Reliance Capital. Leave shall be taken with prior approval as per the provisions. except on account of leave or holiday. Accumulation of Earned Leave can be done upto 120 days. the concerned employee shall keep the sanctioning authority informed of his/her absence and regularize the administrative procedures immediately on resumption of duties. for the year will lapse at the end of the year. Absence from duty. Only a maximum of 10 days EL shall be carried forward to the next year. Unavailed leave. shall be dealt with by the management at its discretion and in the best interests of the organization. An employee will not be granted leave once he/she submits his/her resignation. Intervening holidays will not be treated as part of leave in the case of Earned. and Sick Leave. Wherever prior approval is not mandated. Such absence will be considered as leave on loss of pay. No credit will be available beyond the said limit. in excess of 10 days. • Earned Leave (EL) All employees will be entitled to 24 days of EL for each year of service.1.

In the event of an employee not availing the said leave. LTA amount shall be paid to him/her towards the end of the Financial Year net of tax if he/she does not exercise the option of carrying it forward to the next Financial Year at the end of which the entire amount shall be mandatory paid net of tax if LTA facility is not availed as per rules. in future. an employee will have to avail at least 5 days of EL at a stretch. An employee will not be granted earned leave once he/she submits his/her resignation. subject to the clauses mentioned above on carry forward of EL. only EL balance as on 1st January 2009 will be considered for encashment. encashment of Earned leave can be opted by an employee subject to the availability of a clear balance of 30 days as on 1st January 2009 and retention of minimum 15 days balance in the Earned Leave Account. . Encashment of earned leave will be subject to tax as applicable. Encashment will be calculated on CTC basis (gross of Base and Choice Pay). EL in excess of 5 days shall be granted only if applied with a minimum notice of 15 days. Intervening weekends or holidays shall not be treated as Earned Leave. Earned Leave shall be taken only with the prior approval of the Sanctioning authority.2. No leave encashment will be allowed for employees separating from the services of the Company prior to Confirmation. Any EL accrued / earned post 1st January 2009. • Leave Travel Allowance (LTA): In order to avail LTA. will not be encashed but employees may avail of the same in a planned manner. Unapproved leave or Leave availed in excess of the available balance will be on loss of pay. Encashment: For all employees. Such absence will be considered as leave on loss of pay. Subject to the above.

your services are liable for termination at any time without any notice in writing or payment in lieu thereof. the date of joining. Your services are deemed to be confirmed at the end of the probation period unless you receive intimation to the contrary.f. damage. the date of joining. compensation or any other payment on that account. On satisfactory completion of the probation period and after your confirmation. based on your performance/conduct. The Company may not assign any reason for such termination which shall be at the sole discretion . During the probation period. 4.e. Reliance Capital follows a policy of 'confirmation by default. based on your performance/conduct.f. In the event of an earlier relieving than the stipulated date as per notice served. Your probation may be extended by the company. Probation / Confirmation / Notice Pay For all employees at or below the level of Grade E5 You will be on probation initially for a period of six months w. For all employees at or above the level of Grade E6 You will be on probation initially for a period of six months w. at its discretion. either side shall pay to the other compensation in lieu thereof calculated on the basis of Cost To Company. During the probation period. Reliance Capital follows a policy of 'confirmation by default. Your services are deemed to be confirmed at the end of the probation period unless you receive intimation to the contrary. The Company may not assign any reason for such termination which shall be at the sole discretion of the Company & you will not be entitled to any claim. Your probation may be extended by the company.e. at its discretion. your services can be terminated by giving notice of thirty days or payment of salary (CTC) in lieu thereof on either side.3. your services are liable for termination at any time without any notice in writing or payment in lieu thereof. except for the reasons mentioned in the appointment letter.

• Dependant Parent Coverage There will be a separate policy for coverage of dependant parents as follows: Employees will have an option to cover their dependent parents upto a sum assured of Rs.1.50 Lakhs per annum only on floater basis. This Premium shall be realizable from the employee in a single . The Policy shall cover the employee.50 lacs per annum on floater basis under the new policy. compensation or any other payment on that account.of the Company & you will not be entitled to any claim. except for reasons mentioned in the appointment letter. there will be a corporate buffer which may enable extension of Hospitalization expenses subject to management discretion and availability of buffer. The Policy is meant to cover expenses towards any medical emergencies that may arise resulting in hospitalization.600 per annum (inclusive of Service Tax). Additionally. In the event of an earlier relieving than the stipulated date as per notice served.1. Medical Insurance • Employee & Immediate Family Coverage All employees and immediate family members (spouse and 2 children) shall be covered under the Group Mediclaim Policy of the Company. 5. either side shall pay to the other compensation in lieu thereof calculated on the basis of Cost To Company.3. spouse and dependant children up to a total hospitalization expense of Rs. damage. upon payment of an all inclusive premium of Rs. your services can be terminated by giving notice of forty five days or payment of salary (CTC) in lieu thereof on either side. On satisfactory completion of the probation period and after confirmation.

installment from the salary falling due immediately after the option is exercised. All dependent parents covered under the existing Mediclaim Policy shall be migrated to the new Policy with effect from April 01. . including separation of employment. Mid year inclusion of dependent parents of existing employees will not be allowed. Employees who have covered their parents for an additional cover of 1. Employees joining the organization thereafter can exercise the option only at the time of joining subject to realization of pro rata premium. 2009 and the cost of such premium (mentioned below) will be deducted from the April Salary. Should any employee.e. The process of enlisting dependent parents. shall be done at the time of inception of the Policy only. be allowed to opt for inclusion of their dependant parents under the new policy w. who have not been covered under the existing policy but employees choose to enlist them in the new he/she will be required to specify the same in writing to the Human Resources Department. wish to de-list his/her parents from the new policy.5 lacs under the existing policy for dependant parents (valid till 30th September ’09) would. however. who has already covered their dependent parents in existing policy.5 / 2.f 1st October ’09 subject to realization of pro rata premium Premium paid to cover dependent parents shall not be refundable under any circumstances.rclhrssg. which is in April each year. A detailed process note on this shall be communicated shortly. They may do so through the shared services website (https://www.

Delhi. Bangalore. Chennai.1.84000/.80 lacs All expenses in connection with running & maintenance expenses of the vehicle such as Fuel. insurance shall be admissible for reimbursement under this policy.a. Kolkata.80 lacs p. Vehicle Running & Maintenance Exp Reimbursement This can be opted in the case of a self owned or company owned/leased 4Wheeler / car subject to the following limits: Grade Eligibility Limits p.: Mumbai. Employees in Grades E8 and above can also claim personal driver’s salary as part of the expenses subject to the following sub limits (within the overall limit of Rs.60000/. subject to the provisions of the Income Tax Act. repairs & maintenance.: Rest of the locations.a. The employees would be required to submit the bills in support of the opted amount during the period January to March. Parents shall be considered to be dependant if their joint income is less than Rs.1.000/. Child / Children shall be deemed to be dependant till the age of 21 years or marriage or gainful employment whichever is earlier.10. The retention amount shall be utilized to offset any adverse income tax liability in the event of non/short submission of bills. Till such time employees are . The payments shall be made in monthly installments with the salary after retaining 20% of the opted amount.Income tax benefits arising out of payment of such premium shall be given to the employee.1. E1-E2Not Applicable NIL E3-E4YesRs.1.50 lacs E8 & AboveYesRs. Hyderabad Rs.20 lacs E5-E7YesRs.) Rs.per month. The payments shall not be subject to tax at the time of payment. 6.

Based on the submission of bills and the resultant tax liability. the March installment and shall be released subject to TDS.required to retain the bills.X would have to submit the bills in support of Rs. . In the case of resignation cases the employee would have to submit the bills prior to him/her being relieved from the services of the Company. After retention of 20%. In March Mr. The installment amount as applicable for the last month along with the pro rated retention amount shall be included in the full and final settlement subject to TDS. Human Resource leader should follow creative practices that will help to develop the employer as well as employee.1.20 lacs.shall be paid to him on a monthly basis. if any.1.X has opted for an amount of Rs. the installment for March and the retention amount shall be released Illustration: Mr. as applicable.20 lacs for the period April to March. Then only the organization can run successfully.8000/. Fuel & Maintenance expenses after 7th March would be admissible in the next financial year. Based on the submission of bills and acceptance thereof. an amount of Rs. retention amount Conclusion and Recommendations Finally I conclude that in the competitive world the organization should have innovative ideas then only it can lead the organization very successfully.

and through various employee friendly strategies. profits and better customer would also like to conclude that human resource practices followed by all insurance companies are almost • .irdaindia. Bibliography Websites visited: • www. Reliance Life Insurance has now started realizing that the systematic attention to human resources is the only way to increase organizational efficiency in terms of productivity. quality. quality. teamwork. HR can help deliver organizational excellence by focusing on learning. .wikipedia.• • www.