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CHAPTER 1

INTRODUCTION

INTRODUCTION OF INSURANCE
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for
payment. It is a form of risk strategy primarily used to hedge against the risk of a contingent,
uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The amount of money to be
charged for a certain amount of insurance coverage is called the premium. Risk strategy, the
practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in
the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under which the
insured will be financially compensated.

HUMAN RESOURCE STRATEGY

Human resource strategy (HRS, or simply HR) is a function in organizations designed to


maximize employee performance in service of an employer's strategic objectives.HR is primarily
concerned with the strategy of people within organizations, focusing on policies and systems.HR
departments and units in organizations typically undertake a number of activities, including
employee recruitment, training and development, performance appraisal, and rewarding (e.g.,
managing pay and benefit systems).HR is also concerned with industrial relations, that is, the
balancing of organizational practices with requirements arising from collective bargaining and
from governmental laws.

HR is a product of the human relations movement of the early 20th century, when researchers
began documenting ways of creating business value through the strategic strategy of the
workforce. The function was initially dominated by transactional work, such as payroll and
benefits administration, but due to globalization, company consolidation, technological
advances, and further research, HR as of 2015 focuses on strategic initiatives like mergers and
acquisitions, talent strategy, succession planning, industrial and labor relations, and diversity and
inclusion.

In startup companies, HR duties may be performed by trained professionals. In larger companies,


an entire functional group is typically dedicatedto the discipline, with staff specializing in
various HR tasks and functional leadership engaging in strategic decision-making across
the business. To train practitioners for the profession, institutions of higher education,
professional associations, and companies themselves have created programs of study dedicated
explicitly to the duties of the function. Academic and practitioner organizations likewise seek to
engage and further the field of HR, as evidenced by several field-specific publications. HR is
also

field

of

research

study

that

is

popular within

the

fields

of

strategy

and industrial/organizational psychology, with research articles appearing in a number of


academic journals, including those mentioned later in this article.

In the current global work environment, most companies focus on lowering employee
turnover and on retaining the talent and knowledge held by their workforce. New hiring not only
entails a high cost but also increases the risk of a newcomer not being able to replace the person
who was working in that position before. HR departments also strive to offer benefits that will
appeal to workers, thus reducing the risk of losing corporate knowledge.

IMPORTANCE OF HRS IN INSURANCE SECTOR

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 Strategy.

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

ABOUT THE REPORT


Title of the study: - The present study is titled as A PROJECT REPORT
ON HR STRATEGY OF LIC.
Objective of the study:- The following are the objective of the study:
To understand the existing HRD climate prevailing in the
LIC.
To study the policy of training and development and its
Effectiveness of LIC.
To evaluate the practices regarding human resources in
Insurance companies.
To analyze the methods used to appraise the performance of
the employees in the insurance organization.
Period of the study:-The period of the present study is from OCT 2015.
Limitations of the Study:-The present study has got all the limitations of
explanatory study method.
Data and Methodology:-For the purpose of the present study I had referred
internet, books, newspaper to collect information.

CHAPTER 2

PEOFILE
INTRODUCTION TO LIFE INSURANCE COPORATION IN INDIA

The Life Insurance Corporation of India (LIC) is the largest life insurance company in India and
also the country's largest investor. It is fully owned by the Government of India. It also funds
close to 24.6% of the Indian Government's expenses. It was founded in 1956.

Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance
Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different
parts of India, at least 2048 branches located in different cities and towns of India along with
satellite Offices attached to about some 50 Branches, and has a network of around one million
and 200 thousand agents for soliciting life insurance business from the public.

The corporation is an autonomous and has necessary to run on sound principles. The corporation
has been carrying out the role assigned to it and justifying confidence of public by offering
adequate security at reasonable cost, dependable service, economic strategy and favorable
returns to the nation at large.

In the year 1956, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office. Re-organization of LIC took place and large number of new branch
offices was opened. As a result of re-organization, servicing functions were transferred to the
branches, and branches made accounting units. It worked wonders with the performance of the
corporation.
It may be seen that from about 200 crores of new business in 1957 the corporation crossed 1000
crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000 crore mark of

new business. But with re-organization happening in the early eighties, by 1985-86 LIC had
crossed 7000 crore sum assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal
offices and the corporate office. LICs wide are network covers 100 divisional offices and
connects all the branches through a Metro Area Network. LIC has tied up with some banks and
service providers to offer on-line premium collection facility in selected cities. LICs ECS and
ATM premium payment facility is an addition to customer convenience. Apart from on-line
kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmadabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policy holders, LIC has launched SATELLITE SAMPARK
OFFICES. The Satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.

LIC continues to be the dominant insurer even in the liberalized scenario of Indian insurance and
is moving fast on a new growth trajectory surpassing its own past records; LIC of India traversed
its long and illustrious journey and now has a vision to emerge as a world class customer centric
organization.

OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to the socially and
economically backward classes with a view to reaching all insurable persons in the

country and providing them adequate financial cover against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as a
whole; the funds to be deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and obligations of attractive

return.
Conduct business with utmost economy and with the full realization that the moneys

belong to the policyholders.


Act as trustees of the insured public in their individual and collective capacities.
Meet the various life insurance needs of the community that would arise in the changing

social and economic environment.


Involve all people working in the Corporation to the best of their capability in furthering

the interests of the insured public by providing efficient service with courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation,
pride and job satisfaction through discharge of their duties with dedication towards
achievement of Corporate Objective.

HISTORY OF LIFE INSURANCE CORPORATION

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with the
purpose of looking after the needs of European community and Indian natives were not being
insured by these companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives
were being treated as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company
in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with
highly patriotic motives, insurance companies came into existence to carry the message of
insurance and social security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism. The Swadeshi
movement of 1905-1907 gave rise to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore
were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in
one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India had no legislation to regulate
insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund
Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the Indian
companies at a disadvantage.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE


BUSINESS IN INDIA ARE:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started
functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.

INSURANCE PLANS OF LIC


As individuals it is inherent to differ. Each individual's insurance needs and requirements
are different from that of the others. LIC's Insurance Plans are policies that talk to you
individually and give you the most suitable options that can fit your requirement.

ENDOWMENT PLAN
LIC's SINGLE PREMIUM ENDOWMENT PLAN
LIC's Single Premium Endowment Plan is a participating non-linked savings cum
protection plan, where premium is paid in lump sum at the outset of the policy. This
combination provides financial protection against death during the policy term with the
provision of payment of lumpsum at the end of the selected policy term in case of his/her
survival. This plan also takes care of liquidity needs through its loan facility.
LICs NEW ENDOWMENT PLAN
LIC's New Endowment Plan is a participating non-linked plan which offers an attractive
combination of protection and saving features. This combination provides financial
support for the family of the deceased policyholder any time before maturity and good
lump sum amount at the time of maturity for the surviving policyholders. This plan also
takes care of liquidity needs through its loan facility.
LIC's NEW JEEVAN ANAND
LIC's New JeevanAnand Plan is a participating non-linked plan which offers an attractive
combination of protection and savings. This combination provides financial protection
against death throughout the lifetime of the policyholder with the provision of payment of
lumpsum at the end of the selected policy term in case of his/her survival. This plan also
takes care of liquidity needs through its loan facility.
LIC's JEEVAN RAKSHAK
LIC's JeevanRakshak Plan is a participating non-linked plan which offers a combination
of protection and savings. This plan provides financial support for the family in case of
unfortunate death of the policyholder any time before maturity and a lump sum amount at
the time of maturity for the surviving policyholder. This plan also takes care of liquidity
needs through its loan facility.

LIC'S LIMITED PREMIUM ENDOWMENT PLAN


LIC's Limited Premium Endowment Plan is a participating non-linked plan which offers
a combination of protection and savings. This plan provides financial support for the
family in case of unfortunate death of the policyholder any time before maturity and a
lump sum amount at the time of maturity for the surviving policyholder. This plan also
takes care of liquidity needs through its loan facility.
LIC's JEEVAN SANGAM

LICs JeevanSangam is a participating, non-linked, savings cum protection single


premium plan wherein the risk cover is a multiple of single premium. The proposer will
have an option to choose the Maturity Sum Assured. The single premium payable
(exclusive of service tax) shall depend on the chosen amount of Maturity Sum Assured
and age of the life assured.
The plan will be open for sale for a maximum period of 90 days from the date of launch.
LIC's JEEVAN LAKSHYA
LIC's JeevanLakshya is a participating non-linked plan which offers a combination of
protection and savings. This plan provides for Annual Income benefit that may help to
fulfill the needs of the family, primarily for the benefit of children, in case of unfortunate
death of Policyholder any time before maturity and a lump sum amount at the time of
maturity irrespective of survival of the Policyholder. This plan also takes care of liquidity
needs through its loan facility.

MONEY BACK PLAN


LIC's NEW MONEY BACK PLAN-20 YEARS
LIC's New Money Back Plan-20 years is a participating non-linked plan which offers an
attractive combination of protection against death throughout the term of the plan along
with the periodic payment on survival at specified durations during the term. This unique
combination provides financial support for the family of the deceased policyholder any
time before maturity and lump sum amount at the time of maturity for the surviving
policyholders. This plan also takes care of liquidity needs through its loan facility.
LIC's NEW MONEY BACK PLAN-25 YEARS
LIC's New Money Back Plan-25 years is a participating non-linked plan which offers an
attractive combination of protection against death throughout the term of the plan along
with the periodic payment on survival at specified durations during the term. This unique
combination provides financial support for the family of the deceased policyholder any
time before maturity and lump sum amount at the time of maturity for the surviving
policyholders. This plan also takes care of liquidity needs through its loan facility.
LIC's NEW BIMA BACHAT
LIC's New BimaBachat is a participating non-linked savings cum protection plan, where
premium is paid in lump sum at the outset of the policy. It is a money-back plan which
provides financial protection against death during the policy term with the provision of
payment of survival benefits at specified durations during the policy term. In addition, on
maturity, the single premium shall be returned along with Loyalty Addition, if any. This
plan also takes care of liquidity needs through its loan facility.

CHAPTER 3
THEORATICAL VIEW
INSURANCE DEFINITION
A promise of compensation for specific potential future losses in exchange for a periodic
payment. Insurance is designed to protect the financial well-being of an individual, company or
other entity in the case of unexpected loss. Some forms of insurance are required by law, while
others are optional. Agreeing to the terms of an insurance policy creates a contract between the

insured and the insurer. In exchange for payments from the insured (called premiums), the
insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event.
In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays
the rest. Examples include car insurance, health insurance, disability insurance, life insurance,
and business insurance.

INDIAN INSURANCE INDUSTRY


The insurance industry of India consists of 52 insurance companies of which 24 are in life
insurance business and 28 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-insurer,
namely, General Insurance Corporation of India. Other stakeholders in Indian Insurance market
include Agents (Individual and Corporate), Brokers, Surveyors and Third Party Administrators
servicing Health Insurance claims.
Out of 28 non-life insurance companies, 5 private sector insurers are registered to underwrite
policies exclusively in Health, Personal Accident and Travel insurance segments. They are Star
Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max
Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK
Health Insurance Company Ltd. There are two more specialised insurers belonging to public
sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for Crop Insurance.

Insurance penetration of India i.e. Premium collected by Indian insurers is 3.96 % of GDP in FY
2012-13. Per capita premium underwritten i.e. insurance density in India during FY 2012-13 is
US$ 53.2.

MANAGERIAL FUNCTIONS

Planning
This function deals with the determination of the future course of action to achieve
desired results. Planning of personnel today prevents crises tomorrow. The personnel
manager is expected to determine the personnel programme regarding recruitment,
selection and training of employees.

Organising
This function is primarily concerned with proper grouping of personnel activities,
assigning of different groups of activities to different individuals and delegation of
authority. Creation of a proper structural framework is his primary task. Organising, in
fact, is considered to be the wool of the entire strategy fabric and hence cannot afford to
be ignored.

Directing
This involves supervising and guiding the personnel. To execute plans, direction is
essential for without direction there is no destination. Many a time, the success of the
organisation depends on the direction of things rather than their design. Direction then
consists of motivation and leadership. The personnel manager must be an effective leader
who can create winning teams. While achieving results, the personnel manager must,
invariably, take care of the concerns and expectations of employees at all levels.

Controlling
Controlling function of personnel strategy comprises measuring the employees
performance, correcting negative deviations and industrial assuring an efficient
accomplishment of plans. It makes individuals aware of their performance through
review reports, records and personnel audit programmes. It ensures that the activities are
being carried out in accordance with stated plans.

OPERATIVE FUNCTIONS
Procurement function
The first operative function of personnel strategy is procurement. It is concerned with
procuring and employing people who possess necessary skill, knowledge and aptitude.
Under its purview you have job analysis, manpower planning, recruitment, selection,
placement, induction and internal mobility.
Development
It is the process of improving, moulding, changing and developing the skills, knowledge,
creative ability, aptitude, attitude, values and commitment based on present and future
requirements both at the individuals and organisations level.
Motivation and compensation
It is a process which inspires people to give their best to the organisation through the use
of intrinsic (achievement, recognition, responsibility) and extrinsic (job design, work
scheduling, appraisal based incentives) rewards.
Maintenance
It aims at protecting and preserving the physical and psychological health of employees
through various welfare measures.
Integration function
This tries to integrate the goals of an organisation with employee aspirations through
various employee-oriented programmes, like redressing grievances promptly, instituting
proper disciplinary measures, empowering people to decide things independently,
encouraging a participative culture, offering constructive help to trade unions etc.
Emerging issues
Effective strategy of human resources depends on refining HRM practices to changing
conditions. Hence the need to look at other important issues that can motivate people to
give their best in a dynamic and ever-changing environment.

RECENT TECHNIQUES OF HRS

The field of Human Resource Strategy is developing very fast & every department of human
activity is realizing its importance in the smooth functioning of the organization. Innovative
techniques are developed to improve the work culture, so that the employees are motivated to
give in their best to the organization. There is tough competition everywhere & to survive with
grace, one will have to accept the changes in this modern world and adopt the latest human
resources practices. Those who refuse to change will be left behind & will have to accept defeat.
So it is imperative to implement the latest human resource practices in the organization.
The latest techniques in the field of Human Resource Development are:

Employees for Lease


Sometimes the organizations depend upon consultancy agencies or individual
consultants for their expertise to tap and utilize their expert knowledge. The consultancy
agencies offer expert advice and the execution of the advice is left to the employees of
the organization. The employees may in some of the cases fail to covert the know-how

into a project. Under such circumstances, new types of organizations will emerge, which
would be called as Employee Leasing Organization. These leasing organizations will be
principal employers and send the required number and kind of employees to various
organizations on lease basis. They collect the fee & other charges from various industries
& pay the salaries, provide benefits to the employees. The Leasing company will pay
complete salary and benefits to the employees irrespective of the number of days that the
employee is sent to various organizations on lease.
This type of agreement is beneficial to the leasing company, specialist employees and the
industry. The industry with limited budget can utilize the expert advice & service of most
competent human resources.

Moonlighting by Employees
This is a situation, which arises among employees on account of dissatisfaction
from present wage & salary structure. They feel that employer enjoys the increased profit
and that they are being exploited by the employer. Consequently they agitate for hike in
wages or take up another part-time job or business simultaneously with that of the
original job. This is also known as Double Jobbing.
Moonlighting by employees affects almost all the functions of Human Resource
Strategy. The effects of Moonlighting would be mostly negative & it poses challenges to
the personnel manager. Presently very limited number of employees does moonlighting,
but the number of employees will go on increasing due to change in employee values &
expectations. Strategy will have to take all possible care in selection process about the
possibility of moonlighting by the prospective candidates.
Dual career Groups: There has been a tremendous increase in the number of female
employees in all types of organizations due to: increased career orientation among women in recent years.
creation of variety of jobs.
higher level commitment
better performance.
Less demanding & agitative oriented.
Economic Freedom.
Better Social Status.
Aspirations for quality of work life.
Due to dual career groups, both wife & husband will be loaded with grievances &
problems as both of them share their problems, both at work and off the job. In view of
overloading of the problems to both the members in dual career groups, they spend heir
time and energy in solving the problems or in getting the grievances redressed for both

the parties. So, there will be possibility of less commitment to the work in the
organization by both the parties.
Flexi-time & Flexi-work
The number of hours in a day, number of days in a week and work schedule when
the worker has to perform is normally stated in the Job Description. The concept of Flexitime has been introduced in order to suit the convenience of the workers without affecting
the organizational functioning. Flexi-time is a program that allows flexible entry and
leaving times for employees. Flexi-time increases productivity, decline in absenteeism,
and reduction in employee turnover & increase in morale.
Flexi-work
It is a program that allows flexibility in handling the type of work in various
departments of the organizations in systematic way by the employee during his tenure of
employment in an organization. For example, a candidate may be selected as a clerk in
the Personnel Department and after two years he may be allowed to take up work in any
other department of the organization.
Training & Development
Organizations spend a lot of time and resources in training, developing and
educating their employees in tune with the job awareness and organizations'
requirements. This is mostly due to the absence of linkage between the industry and
universities. Organizations in future will establish their own educational institutes. These
institutes will frame their course curriculum to suit the requirements of various jobs in the
organization as a whole. These institutes will go on changing the course curriculum
depending upon the changes in technology, work methods, production process, activities
and so on. The intake of these institutes depends on exclusive requirements of
organization. After the completion of the course, the candidate will be awarded a diploma
and absorbed by the organization. This strategy arrangement will automatically take care
of the problem of unemployment and underemployment. This arrangement will also
minimize the duration of time to be spent by the candidate in his educational process.
Strategy Participation in Employees' Organizations
With the formation and recognition of employees' organizations, the strategy
cannot make unilateral decisions those affect employee relationship directly or indirectly.
Decisions relating to policies on employment, training, transfer, promotion, adoption of
latest technology etc. are no longer determined by unilateral action of strategy and must
now be discussed with the representatives of employees' organizations. Decisions on the
policies and administration may still rest with strategy, but they are frequently subject to
question and criticism by union representatives under a formal grievance procedure. This
technique enables the two parties to exchange ideas, opinions, information and

knowledge to understand each other's viewpoint, with an open mind and thereby avoid all
misunderstandings. Thus, the strategy representatives may provide effective plans,
suggestions, advice organization and directions for sound strategy and functioning of
federations and unions for the common good of both the parties.
Collective bargaining
It is an institutional process for solving problems arising directly out of employeremployee relationships. Through collective bargaining the two parties become responsive
to each other. Employees ventilate their problems relating to wages, employee benefits
etc. while the strategy puts forth its demands regarding employee co-operation and
commitment so as to maximize its profits. Thus, the two parties discuss the problem and
each party tries to solve the problems of the other. The scope of collective bargaining is
wider as the solutions for common problems can be found directly through negotiations
between both the parties.

METHODS OF TRAINING FOR MANAGERS, METHODS OF


MANAGERIAL DEVELOPMENT/EXECUTIVE DEVELOPMENT

Various methods are used to train personnel for managerial level jobs in the company. These
methods can be explained with the help of following diagram:

ON THE JOB TRAINING METHODS


On the job method refers to training given to personnel inside the company. There are
different methods of on the job training:
1. Job rotation
This method enables the company to train managerial personnel in departmental work. They are
taught everything about the department. Starting from the lowest level job in the department to
the highest level job. This helps when the person takes over as a manager and is required to
check whether his juniors are doing the job properly or not. Every minute detail is studied.
2. Planned progression

In this method juniors are assigned a certain job of their senior in addition to their own job. The
method allows the employee to slowly learn the job of his senior so that when he is promoted to
his senior job it becomes very easy for him to adjust to the new situation. It also provides a
chance to learn higher level jobs.
3. Coaching and counseling
Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually
teaches his junior regarding how the work must be handled and how decisions must be taken, the
different techniques that can be used on the job, how to handle pressure.
There is active participation from the senior. Counseling refers to advising the junior employee
as and when he faces problems. The counselor superior plays an advisory role and does not
actively teach employees.
4. Under study
In this method of training a junior is deputed to work under a senior. He takes orders from the
senior, observes the senior, attends meetings with him, learns about decision making and
handling of day to day problems. The method is used when the senior is on the verge of
retirement and the job will be taken over by the junior.

5. Junior board
In this method a group of junior level managers are identified and they work together in a group
called junior board. They function just like the board of directors.

OFF THE JOB TRAINING METHODS


Off the job training refers to method of training given outside the company. The different
methods adopted in off the job training are the following:
1.Classroom method
The classroom method is used when a group of managers have to be trained in theoretical
aspects. The training involves using lectures, audio visuals, case study, role play method, group
discussions etc. The method is interactive and provides very good results.
2. Simulation

Simulation involves creating atmosphere which is very similar to the original work environment.
The method helps to train manager handling stress, taking immediate decisions, handling
pressure on the jobs etc. An actual feel of the real job environment is given here.
3. Business games
This method involves providing a market situation to the trainee manager and asking him to
provide solutions. If there are many people to be trained they can be divided into groups and
each group becomes a separate team and play against each other.
4. Committee
A committee refers to a group of people who are officially appointed to look into a problem and
provide solution. Trainee managers are put in the committee to identify how they study a
problem and what they learn from it.
5. Readings
This method involves encouraging the trainee manager to increase his reading related to his
subject and then ask him to make a presentation on what he has learned. Information can be
collected by trainee manager from books, magazines and internet etc.

HRS PRACTICES
The District's human resource strategy policies and practices pose the greatest potential
for illegal discrimination. Human resources policies and practices normally are not intended to
discriminate or somehow have a disparate impact on women, people of colour, people with
disabilities, or other protected groups. It should be noted, however, that systemic discrimination,
while unintentional, is most often the major barrier to equal employment opportunity; yet, it is
the most difficult to detect. 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, or people with disabilities.

Responsibility for human resource strategy includes all officials, administrators, and supervisors
in addition to the staff of the Human Resources Department.
1. Recruitment, Examination and Selection
Recruitment, examination, selection and placement procedures will be
continuously reviewed for all licensed, classified and administrative positions. From the
initial contact with potential applicants to the final interview and selection of employees,
the Human Resources Department and its practices will address the following:
Recruitment and Selection Process will not have the effect of blocking people of colour,
women, and people with disabilities from district employment and promotions. Where
blockages, or potential blockages, are identified, corrective actions will be taken to make
the process more inclusive to diversity.
Targeted Recruitment, as described in Section 6.2, will be undertaken to address areas of
under representation. This expanded recruitment is to be focused on increasing the
number of people of colour, women, and people with disabilities who apply for
employment; and, thus increasing the probability of qualified candidates from
underrepresented groups being selected to fill vacant positions. Recruitment activities
will be inclusive rather than being exclusive.
Selection Criteria to be used in candidate recruitment, screening, interviewing and
selection should reflect the essential functions of the job. All selection criteria are to be
job-related, pre established, and applied consistently. Additionally, in the selection of
teachers, administrators, and professional staff the district will give priority consideration
to relevant, specialized, and qualitative training and experience that demonstrates ability
to work with diverse populations. This consideration will include, but not be limited to,
such factors as:
Ability to relate to diverse student, parent and community groups;
Experience in working with children and parents from different racial/ethnic minority
groups;
Experience and training in multicultural education programs;
Evidence that applicant is aware of and sensitive to the changing roles and perceptions of
women, people of colour, and people with disabilities in our society.
Applications, Tests Or Examinations for employment and promotion, including oral
interviews, will be monitored to ensure that they are unbiased and do not have adverse
impact on people of colour, women, 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.
Selection Committees will include people of colour, people with disabilities, and gender
balance to the extent possible. Parents of students with disabilities will be included in the

selection of special education teachers to the extent feasible and practical. Selection
committees will be made aware of the district's Work Force Diversity goals.
Selection and Appointment of an employee will be based on job-related qualifications,
merit, district goals, and program needs.

2. Targeted Recruitment Process


Where the district has determined that people of colour, women, or people with
disabilities are significantly underrepresented in relation to their availability for specific
job groups, the district will initiate a targeted recruitment approach that includes, but is
not limited to, the following steps:
Request to Post a Vacancy
The request to post a vacancy will be submitted to the appropriate HR administrator by
the principal or supervisor.
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. A focus job group is one in which women (and in
some case, men) or minorities are determined to be significantly underrepresented in
relation to their availability in the relevant labour market.
3. Selection Committees
The district supports broad-based involvement in the hiring and selection process.
Principals and department directors are encouraged to use staff, parents, community, and
students as appropriate in the screening and interviewing process to fill position
vacancies.

4. Affirmative Action
Affirmative action does not end when the employment process has resulted in
placement. Although the major thrust of affirmative action is the identification and
elimination of barriers that preclude the hiring of women, people of 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
strategy 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 strategy
of functions, but just as important is the equal treatment of employees in terms of appointments,
pay, opportunities for training and advancement.
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.
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.

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.
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.

APPROACH-The Company approaches with the candidates through emails or


telephone.

SEMINAR-The Company then conducts seminar. For major seminars they hire hotels
but for small ones they prefer companys training room.

SCREENING-They communicate the job profile to the filtered candidates.

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:

INITIAL BRANCH LEVEL INTERVIEW-Branch manager takes such interviews mainly to


select the localities and decide who are best suited for the job.

REGIONAL BRANCH INTERVIEW-Regional branch manager takes the interview & his
decision to select or reject the candidate is final.

CHAPTER 4
CONCLUSION

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 strategy 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 strategy 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.

BIBLIOGRAPHY
Human Resource Management by Rishabh publication.
Author: sunny fernandes

www.google.com
www.wikipedia.com

www.licindia.com
www.humanresources.about.com