Introduction of The Insurance Industry
Overview The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. 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 nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. Present Scenario The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 14 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies..
Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. Major Insurance Players Licenses have been issued for the following companies ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI – Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited
AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited Protection of the interests of policyholders: IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps: 1. IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. 2. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. 3. It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public. 4. All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract COMPANY PROFILE ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in UK. ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal. India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. FACT SHEET THE COMPANY ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the first quarter ended
June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new business premiums and wrote over 450,000 retail policies in the period. The company has assets held to the tune of over Rs. 18,400 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors. The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 150 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south. The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as over 300 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies. ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers RegisteredOffice :
ICICI Towers 9thfloor, Bandra-Kurla Complex Mumbai - 400 051. Tel: 494 3232 Regional Office : 8th floor EROS Coorporate Tower,Nehru place, New Delhi-110011.Tel:46554405 Delhi office : 3rd floor Videocon Towers E-1, Rani Jhansi Road New Delhi - 110055. Tel: 601 3232
Products Insurance Solutions For Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policy holder. Savings Solutions • Save’n’Protect is a traditional endowment savings plan that offers life protection along with adequate returns. • CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset. • LifeTimeSuper offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options — Preserver, Protector, Balancer and Maximiser.
LifeLink Super is a single premium Unit Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. • Premier Life Gold is a limited premium paying plan that offers customers life insurance cover till the age of 75. • InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. · InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Protection Solutions • LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options – level term assurance, level term assurance with return of premium and single premium. • HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and costeffective manner. Child Plans · SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. SmartKid plans are also available in unit-linked form – both single premium and regular premium. Education Insurance Plans · Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium Retirement Solutions • ForeverLife is a retirement product targeted at individuals in their thirties. • Market-linked retirement products • LifeTime Super Pension is a regular premium market-linked pension plan.
Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.
Health Solution Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover • Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. • Diabetes Care and Diabetes Care Plus*: 1st ever critical illness insurance cover for diabetics. • Hospital Care*: Hospital Care offers a Cashless hospitalization facility in more then 3000 network hospitals • Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death Note (*) products Re-launched on 1st July 2006
Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Choice of Six Investment Options :ICICI prudential offers you the opportunity of selecting between investment options to match your investment priorities. 1) Protector:- An Investment Option with investment indebt and money market instruments. 2) Maximiser :- An investment option with investment in equity and equity related instruments. 3) Balancer: - An investment option with investment in a mix of equity and debt oriented instruments. 4) Preserver: - An investment option with investment in low-risk instruments like cash and call money markets. 5) Flexi Growth: - New Fund (NFO) launched in March 2007, Long term returns from an equity portfolio lare, mid and small cap companies. 6) Flexi balanced:- Balance of capital appreciation and stable returns from an equity (large, mid & small cap companies) & debt portfolio.
Businesses at Various Growth Phase
Asset Commercial Car Finance Sunrise Stable/gr Leader Knowl Wealt Asset Reconstructi owth Finan edge h once Vehicles, Mgmt Skills Retail Loans Corp Finance Investment Banking
Distribution Pvt. and Equity Mutual Fund Life Brokerage International Insurance Operations
ASSETS UNDER MANAGEMENT
SA- 18% US- 57% OTHERS- 3% EUROPE- 22%
The journey so far
In October 2005, ICICI Group acquired the 40% stake in ICICI Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit ICICI PRUDENTIAL (FCKM) held by ICICI Group.
In May 2006, ICICI Group bought 25% stake held by Goldman Sachs in ICICI Capital and ICICI Securities. Key group companies and their businesses ICICI PRUDENTIAL Bank The ICICI PRUDENTIAL Group's flagship company, ICICI PRUDENTIAL Finance Ltd which was established in 1985, was converted into a bank- ICICI PRUDENTIAL Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. ICICI PRUDENTIAL Capital Company ICICI PRUDENTIAL Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services. ICICI Securities ICICI Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, ICICI Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. ICICI Securities Ltd. offers online (through www.ICICIsecurities.com) and offline services based on well-researched expertise and financial products to non-institutional investors. ICICI PRUDENTIAL Prime ICICI PRUDENTIAL Prime Limited (KMP) (formerly known as ICICI PRUDENTIAL Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade.
ICICI PRUDENTIAL Asset Management Company ICICI PRUDENTIAL Asset Management Company ICICI PRUDENTIAL Asset Management Company (KMAMC), a subsidiary of ICICI PRUDENTIAL Bank, is the asset manager for ICICI PRUDENTIAL Mutual Fund (KMMF). KMMF manages funds in excess of Rs 16,100 crore and offers schemes catering to investors with varying risk-return profiles. ICICI PRUDENTIAL Old Mutual Life Insurance Limited ICICI
PRUDENTIAL Old Mutual Life Insurance Limited is a joint venture between ICICI PRUDENTIAL Bank Ltd. and Old Mutual plc. ICICI Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. ICICI group was founded by Mr. Uday ICICI in Gujarat, He started his business with the Trade finance and Old mutual plc was a south Africa based insurance company. After the Joint venture ICICI PRUDENTIAL old mutual life insurance limited come in insurance sector and become the first NBFC (NON BANKING FINANCIAL CORPORATION) to convert into a Bank.
Department With In The CompanyCustomer Service & Operations
The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. IT The Information Technology function at ICICI life insurance is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: The Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization.
The Marketing function at ICICI life insurance covers an array of activities - brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture ICICI life insurance identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales
tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. .
Finance function in ICICI life insurance is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of ICICI life insurance. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management, information security assessment and business continuity assessment
The people strategy of ICICI life insurance is "To build a committed team with a culture of innovation, learning and growth”. The Human Resource Function at ICICI life insurance drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization.
Licenses have been issued for the following companies ICICI PRUDENTIAL Old Mutual Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI – Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited
INTRODUCTION TO THE PROJECT TOPIC
Performance Evaluation Performance evaluations, which provide employers with an opportunity to assess their employees' contributions to the organization, are essential to developing a powerful work team. Yet in some practices, physicians and practice managers put performance evaluations on the back burner, often because of the time involved and the difficulties of critiquing employees with whom they work closely. The benefits of performance evaluations outweigh these challenges, though. When done as part of a performance evaluation system that includes a standard evaluation form, standard performance measures, guidelines for delivering feedback, and disciplinary procedures, performance evaluations can enforce the acceptable boundaries of performance, promote staff recognition and effective communication and motivate individuals to do their best for themselves and the practice.
Objectives Of The Performance Evaluation Data relating to performance assessment of employees arc recorded, stored. and used for seven purposes. The main purposes of employee assessment are: 1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. 5. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. 7. Finally, performance appraisal can be used to determine whether HR programs such a selection, training, and transfers have been effective or not.
Broadly, performance appraisal serves four objectivesDevelopmental uses, Administrative uses/decisions, Organizational maintenance/objectives, and Documentation purposes
Multiple Purposes of Performance Assessment General Applications Developmental Uses Specific Purpose Identification of individual needs
Performance feedback Determining transfers and job assignments Identification of individual strengths ad development needs Salary Promotion Retention or termination Administrative Uses/Decisions Recognition of individual performance Lay-offs Identification of poor performers Bottom of Form
The primary goals of a performance evaluation system are to provide an equitable measurement of an employee's contribution to the workforce, produce accurate appraisal documentation to protect both the employee and employer, and obtain a high level of quality and quantity in the work produced. To create a performance evaluation system in practice, these five steps should be considered: 1. Develop an evaluation form. 2. Identify performance measures. 3. Set guidelines for feedback. 4. Create disciplinary and termination procedures. 5. Set an evaluation schedule.
KEY POINTS • A performance evaluation system can motivate staff to do their best for themselves and the practice by promoting staff recognition and improving communication. • Evaluations should be conducted fairly, consistently and objectively to protect your employees and your practice. • An effective performance evaluation system has standardized evaluation forms, performance measures, feedback guidelines and disciplinary procedures.
1. Develop an evaluation form. Performance evaluations should be conducted fairly, consistently and objectively to protect employees' interests and to protect practice from legal liability. One way to ensure consistency is to use a standard evaluation form for each evaluation. The form use should focus only on the essential job performance areas. Limiting these areas of focus makes the assessment more meaningful and relevant and the employee to address the issues that matter most. ..
2. Identify performance measures. Standard performance measures, which allow to evaluate an employee's job performance objectively, can cut down on the amount of time and stress involved
in filling out the evaluation form. Although developing these measures can be one of the more time-consuming parts of creating a performance evaluation system, it's also one of the most powerful. 3. Set guidelines for feedback. Feedback is what performance evaluations are all about. So before implement performance evaluation system, make sure that everyone who will be conducting evaluations knows what kind of feedback to give, how to give it and how to get it from the employee in return.. . 4. Create disciplinary and termination procedures. In some cases, even after a thorough performance evaluation and a discussion of expected improvements, an employee will continue to perform poorly. We need to be prepared to handle such a situation by having well-defined, written disciplinary and termination procedures in place. These procedures should outline the actions that will be taken when performance deteriorates - a verbal warning, a written warning. 5. Set an evaluation schedule. Once built performance evaluation system - the evaluation form, the performance measures, the feedback guidelines and the disciplinary procedures - just need to decide when to conduct the performance evaluations. Some practices do all employee evaluations at the same time of year, while others conduct them within 30 days of each employee's anniversary of employment (the latter may work better since it spreads the work of the evaluations out for employer and employee). The last analysis A performance evaluation system should be a key component of practice structure. When implemented effectively, it ensures fairness and accountability, promotes
growth and development and encourages a sense of pride in your employees' contributions to the practice. Performance Evaluation And Competitive Advantage The objectives of performance appraisal, listed above, point out the purpose which such an exercise seeks to meet. What needs emphasis is that performance evaluation contributes to firm's competitive strength. Besides encouraging high levels of performance, the evaluation system helps identify employees with potential, reward performance equitably and determine employee's need for training. Specifically, performance appraisal helps an organization gain competitive edge in the following ways (see Fig below)
Making correct Ensuring and Strategy Legal Values and Minimizing Competitive Improving dissatisfaction and Behaviour Compliance decisions Behavior Advantage Performance turnover
Fig: How Performance Evaluation can contribute to Firm's Competitive Advantage?
Improving Performance An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways-by directing employee behaviour towards organizational goals, as was done by the second beekeeper (see opening case), and by monitoring that behaviour to ensure that the goals are met. Making Correct Decisions As stated above, appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training, discharges and completion of probationary periods. Right decision on each of these can contribute to competitive strength of an organization. If promotion, for example, is made on performance, the promote feels motivated to enhance his or her performance. Ensuring Legal Compliance Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non-productive areas, as it happened to Williamson Magar. Organizations can minimize costly performance-related litigation by using appraisal systems that give fair and accurate ratings.
Minimizing Job Dissatisfaction and Turnover Employees tend to become emotional and frustrated if they perceive that the ratings they get are unfair and inaccurate. Such employees find that the efforts they had put in became futile and obviously get de-motivated. Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased turnover. Fair and accurate appraisal results in high motivation and increased job satisfaction. An organization having satisfied and motivated employees will have an edge over its competitiveness’
Organizational Strategy and Performance Evaluation The performance evaluation system serves many organizational objectives and goals. Besides encouraging high level of performance, the evaluation system is useful in identifying employees with potential, rewarding performance equitably and determining employees' needs for development. These are all the activities that should support the organization’s strategic orientation. Although these activities are clearly instrumental in achieving corporate plans and long-term growth, typical appraisal systems in most organizations have been focused on short-term goals. From the strategic management point of view, organizations can be grouped into three categories defenders, prospectors and analyzers. Performance appraisal has definite roles in all the three strategies. Typically, defenders have a narrow and relatively stable product-market domain. Because of this narrow focus, these organizations seldom need to make major adjustments in their technology Structure or methods of operations. They devote primary attention to improving the efficiency of their existing operations. successful defenders use performance appraisal for identifying training needs. Organizations with a prospector strategy continuously search for different product and market opportunities. In addition, these organizations regularly experiment with potential responses to new and emerging environmental trends. Prospectors are often the harbingers of change. Because of the emphasis on skills identification and acquisition of human resources from external sources, as opposed to skills building with the organization, prospectors often use the performance appraisal as a means of identifying staffing needs. The emphasis is on results. Finally, the focus is on division and corporate performance evaluation as they compare with other companies during the same evaluation period. Organizations with an analyzer strategy operate in two types of product-.market domains. One domain is stable while the other is changing. In their more
innovative areas, managers watch their competitors closely and rapidly adopt the ideas that appear promising. In general, analyzers use cost effective technologies for stable products and project or matrix technologies for new product. Analyzers tend to emphasize both skill building and skill i1cquisilion and employ extensive training programs. Thus, these organizations attempt to identify both training as well as staffing needs. The appraisal systems are considered at the individual, group and divisional levels. Finally, successful analyzers have a tendency to examine current performance with past performance within the organization. comparisons (comparisons among 'companies) may also occur. Evaluation Process Figure below outlines the performance- appraisal process. Each step in the process is crucial and is arranged logically. The process as shown in Fig. Below is somewhat idea1ised. Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many others fail to consider one or more of the steps and, therefore, have less-effective appraisal system. Cross-sectional
Measuring actual Communicate Establish performance performance expectation Standard
Initiate corrective action Discussion of actual Comparison toappraisal with employees & standard performance
Some Important Methods Of Performance Evaluation:• • • • • • Behavioral Anchored Rating Scale Forced choice distribution Checklist Ranking Method Paired-comparison Method Grading & Rating
Performance management system (PMS) is the heart of any " people management " process in organization. Organizations exist to perform. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. Performance management systems if properly designed and implemented can change the course of growth and pace of impact of organizations. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.
Objective The objectives of Performance Management are to: 1. Increase two-way communication between supervisors and employees 2. Clarify mission, goals, responsibilities, priorities and expectations
3. Identify and resolve performance problems 4. Recognize quality performance 5. Provide a basis for administrative decisions such as promotions, succession and strategic planning, and pay for performance.
Principle Of Developing Performance Management Plan Development of a performance management plan should be consistent with the following principles:
1. Performance management is considered a process, not an event. It follows
good management practice in which continual coaching, feedback and communication are integral to success. 2. The Performance Management Plan is primarily a communication tool to ensure mutual understanding of work responsibilities, priorities and performance expectations.
3. Elements for discussion and evaluation should be job specific – not
generalized personality traits. The major duties and responsibilities of the specific job should be defined and communicated as the first step in the process.
4. Performance standards for each major duty/ responsibility should be
defined and communicated. 5. Employee involvement is encouraged in identifying major duties and defining performance standards.
6. Professional development should be an important component of the plan.
7. The formal evaluation period should be long enough to allow for full performance and to establish a history such that evaluations are fair and meaningful. One year is a common evaluation period.
8. Documentation of performance will occur as often as needed to record the
continuum of dialogue between supervisor and employee.
9. If formal ratings are included, they should reflect the incumbent's actual
performance in relation to the performance standard for that major duty. 10.The supervisor should be evaluated on the successful administration of the plan and ongoing performance management responsibilities. Process Of Performance Management
Employee performance management includes:
• • • •
planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and
rewarding good performance.
In an effective organization, work is planned out in advance.
Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.
In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals.
In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology.
From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and
comparing performance over time or among various employees. Organizations need to know who their best performers are.
In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative.
Managing Performance Effectively. In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five component processes working together and supporting each other achieve natural, effective performance management.
Performance Management System
Introduction The human resource is the organization's most valuable asset. They define the efficiency, effectiveness and over-all quality of service in any industry. It is important for any organization to establish an effective system that accurately evaluates the performance of workers for the purpose of determining tenure, transfers or promotions, and appropriate incentives. While policies and systems for employee performance evaluation have long been in place in the government, there has been an increasing demand to review the existing system, i.e. demand for public servants to produce tangible results by "making a difference" instead of "just keeping busy," demand for increased accountability by performing the mandate of the organization, the need to correct the notion that a permanent appointment guarantees security of tenure. Hence, the call for the Civil Service Commission (CSC), as the central personnel agency of the government, to revisit and, as necessary, re-invent the performance management system of the bureaucracy. The development of the performance management system for the civil service was initiated by a re-assessment of the existing Performance Evaluation System (PES). This resulted to the Performance Management System - Office Performance Evaluation System (PMS-OPES)-a new strategy that will establish a culture of performance and accountability in the bureaucracy. Through the PMS-OPES, the CSC aims to establish a high-performance culture by aligning individual objectives to the organizational objectives. The new performance management system would meaningfully and objectively link employees performance vis-à-vis an agency's Organizational Vision, Mission, and Strategic Goals by using a technology composed of various strategies, methods, and tools for ensuring fulfillment of the functions of the offices and its personnel as well as for assessing the quality, quantity, and timeliness of the accomplishments. It is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. The unique component of the PMS-OPES is the use of points system to measure the collective performance of individuals within an operating unit. It simplifies the performance evaluation/measurement process and also provides an objective and user-friendly performance management system.
The Performance Management System - Office Performance Evaluation System (PMS-OPES) The PMS-OPES is a new way of managing performance in the civil service that serves as an evaluation strategy for assessing office performance or the collective performance of individuals within the smallest operating unit of an organization. By measuring office performance, it becomes easier to directly translate the agency's strategic direction into more specific and measurable objectives. It also serves as a standard-setting mechanism for better alignment of individual objectives to agency objectives. Moreover, it enhances objectivity of individual performance evaluations.
The following are the objectives of the PMS-OPES: 1. To align individual performance goals with the organization's strategic goals/vision; 2. To ensure organizational effectiveness by cascading institutional accountabilities to the various levels of the organization's hierarchy; 3. To have performance management linked to other HR systems; and 4. To link agency overall performance to the Organizational Performance Indicator Framework, to the Agency Strategic Plan, and to the Medium-Term Philippine Development Plan.
Environmental Performance Evaluation : What is lt? The EMS standard requires organizations to develop measurable objectives and targets, and to monitor and evaluate their performance against them. The EMS does not audit this performance but it does audit the management of performance objectives and target. SC4 is developirig a guideline to help organizations manage tliis monitoring and evaluation process.
The basic premise is that what gets measured gets done. Measurement allows an organization to more clearly understand and quantify where it is and how far it has to go to meet its objectives and targets. lt also provides a basis for understanding improvement. The EPE then will provide the organization with a systematic tool for generating information. A necessary element of generating useful information is selecting or defining the environmental performance indicators (EPIS) or performance measures that will be used. EPE is different from environmental audits in several significant ways. EPE is an ongoing process. As part of the management system it is something that is put in place and available at all times. It helps to define actions, responsibilities and information flows that are part of ongoing, day-to-day operations, An environmental audit ls a snapshot In time. It is a periodic verification that everything is as it should be. As well, while the evidence collected during an audit is existing evidence, the information generated by an EPE is new evidence. While within the framework of and EPE an organization can conduct research and investigate new issues, within an audit one can only assess claims concerning the current state. Since an EPE system provides the framework for information gathering it also provides a logical link to reporting. Organizations will have many internal and external reporting requirements and EPE system can ensure that the information is gathered and disseminated correctly and on time. Many organizations also choose to voluntarily report on their environmerital management system or environmental performance. The systematic collection and generation of information provided by the EPE system provides tremendous efficiencies of effort should an organization decide to report voluntarily. How It Works The standard being developed by SC4 will allow organizations to develop appropriate systems to measure, evaluate, describe and communicate environmental performance. lt is part of the environmental management system and not separate from it. Thus ISO 14001, the EMS specification document, requires that an organization monitor and measure on a regular basis the key characteristics of its operations and activities. The developers of this standard, however, intend to develop a document that will be useful to an organization that wishes to evaluate its environmental performance whether or not it has a formal environmental management system in place. If an organization without and EMS wishes to use the EPE system it must still have a mechanism for developing objectives and targets since the EMS document and not the EPE document provides this guidance. The current draft of the EPE document contains the following elements:
Planning EPE Management corisiderations Selecting indicators for the management area Selecting indicators for the operational area Selecting iridicators for the environmental area Evaluating Environmental Performance Collecting data Analyzing data Evaluating information Internal reporting and communicating External reporting and communicating Reviewing and improving EPE Planning involves reviewing or identifying those environmental aspects of an organizations activities products and services that have generated objectives and targets. It is essential that the EPE process be integrated with the EMS since the development of objectives and targets should include identifying what an organization wants to measure and therefore how it wants to measure it. The selection or definition of environmental performance indicators is key at this juncture. There is much debate about the development or EPIS. Should there be generic EPIs across sectors? Common EPIs would provide the basis for comparison and benchmarking. They might also provide the basis for generation of national, regional or international environmental accounts. But is the development of such generic EPIs possible given the diversity of business operations, local conditions and measurement capabilities? Should individual sectors develop their own EPIS? If generic. EPIs are too difficult to develop should sector-based EPIs he developed? In 1992, SC4 set itself the goal of developing generic and sector specific EPIs but soon abandoned it as too large a project. They also had to ask themselves if they were the right group to develop sectoral EPIS. Perhaps ttie industry associations, which are able to bring together all of the experts in their area, should be encouraged to undertake this task. Sector efforts to date to do this have proven difficult. Organizations are wary of helping to create indicators tliat will allow them to be too easily ranked for environmental performance against their competitors.
PROJECT PROFILE Title Of The Study Title of the study is ANALYSING THE PERFORMANCE EVALUTION AND MANAGEMENT IN OLD MUTUAL ICICI LIFE INSURANCE. Objective Of The Study The main objective of this study is to know the awareness, perception and satisfaction level of employees regarding the Performance Management System, and to evaluate and analyze the effectiveness of the system, i.e. ➢ To study the Performance Management System (PMS) prevailing in the organization. ➢ To evaluate and analyze the working of the system. ➢ To study the awareness of this system among the employees in order to know how much they know about it, how much are they involved in it, their commitment to the system, their perception about the system and whether they are satisfied with it or not. ➢ To study the effectiveness of this system in the organization. ➢ To make suggestion. Scope Of The Study During the tenure of the project/summer training attempt is to understand the work culture and processes involved in the HR Department of Old mutual ICICI life insurance. Attempt would be to analyze, how the HR deals with aspect of people management.
In the latter part of the project a study would be conducted on the Performance Evaluation and Management System, where a detail analysis is planned to understand the methods, process and analysis of the evaluation and management system Significance Of The Study This study is beneficial for both to the company and the researcher To The Company – This project is advantageous to the company because• Through this company can what are the faults in their performance evaluation and management system and it can be able to remove those faults. • Company can know satisfaction level of their employees. • Employee’s expectation from the company. • Employees performance • This report also help the company that where its system works successfully and how it can be maintained • This project report suggests the company that what changes should be there in the current performance and evaluation and management system to gain the competitive advantage To the Researcher – This project is necessary to the researcher – • Being a management student it is necessary to gain the practical knowledge about the corporate world and the market this project gives the practical exposure to the researcher
• Through this project researcher knew how performance being evaluated by a company and how manage it • This is also useful because this project generated new ideas in the researcher that how a company maintained their performance evaluation and management system so that it can be enough motivated to their employees to their employees and also gain competitive advantage `
RESEARCH METHODLOGY UNIVERSE The first step in developing any sample design is to clearly define the set of objects, technically called the universe. The population was finite. A definite plan was drawn up for obtaining a sample from the employees of the ICICI life insurance in KOTA. Sampling Technique
Research in common parlance refers to a search of knowledge. Research methodology comprises defining and redefining problems formulating hypothesis or suggested solution; collecting, organizing and evaluating data making deduction and reaching conclusion and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. In it I study the various steps that are generally adopted by a researcher in his research problem along with the logic behind them. It is necessary for the researcher to know not only the research method but also the methodology. Random sampling:This type of sampling also known as chance sampling or probability sampling where each and every item in the population has as equal chance of inclusion in the sample and each one of the possible sample has the same probability of being selected.
Research Design:A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Exploratory research design is used. The research study was conducted in order to know the employee’s awareness and perception level regarding the prevailing Performance Management System in ICICI life insurance Ltd. Tools Of Data Collection
Since the study under taken by me is descriptive research, I have concentrated on primary data through survey and collection secondary data. On the basis of the following two sources, the research was carried out:1. Primary Data 2. Secondary Data 1. Primary Data:a) Questionnaire Method: The main instrument for the collection of primary data was the Questionnaire Method. The questionnaires were prepared for sales managers which mainly contained questions on the following dimensions:○ Awareness ○ Measures of Performance ○ Feedback ○ Perception
b) Informal discussion: Informal discussions were carried out with sales
managers across various levels in the organization to know the prevailing system, awareness level and also to know their viewpoints on PMS. 2. Secondary Data:Secondary data was collected by reviewing different literatures like articles, magazines, journals, etc and also through different websites.
Limitations Of The Study: The researcher tried to make the research work as authentic as possible. However the following constrain still unavoidable: • All the results and conclusions have been drawn on the basis of the information provided by the respondents not denied that there was always a possibility of response error. • Some respondents were reluctant and were tend to filter the information to the researcher. • The sample size taken may not prove adequate for conditions.
DATA ANLYSIS • What is your job profile in this company.
45 NO OF RESPONDENTS 40 35 30 25 20 15 10 5 0
3 sales manager asst. branch manager
5 1 mktg manager DESIGNATION 1 training head operation
Interpretation Sample size is taken 50 out of which 40 persons are Sales Manager, 3are the Asst. Branch Manager, 1 is the Marketing Manager, 1 is the Training Head of Rajasthan and the 5 persons are working in the Operation Department of the company
Satisfaction level from the job profile.
YES NO YES 78%
Interpretation During the survey I found that out of 50 employees 78% employees said that they are satisfied with their job profile while the 22% said that they are not satisfied with their job profile with in the company. • Satisfaction level from the facilities provided by the company .
Interpretation out of 50 employees 94% employees were satisfied the facilities provided by the company to do their their work. On the other hand only 6%employees were not satisfied by the facilities.
• Achievements in current job profile
45% 40% 35% PERSENTAGE 30% 25% 20% 15% 10% 5% 0% grade salary 20% 30%
Series1 Series2 10%
Interpretation Out of 50employees 20%said that they got achievements in grade, 30%in salary, 40%got many rewards while 10%said other achievements like L.A. counted in manager. • Achievements satisfied organization need
Interpretation When the question were asked to the employees that their achievements satisfied the organization need then the response was 100%. Everyone said that their achievements fulfill the company needs. • Analysis the quality of the work
0.6 0.5 0.4 PERCENTAGE 0.3 0.2 0.1 0 considerably surpassed minimum requirements exceeded minimum requirements met minimum requirements less than minimum requirements c 10% 20% 10% 60%
Interpretation Out of 50 employees 60% said that they met the surpassed minimum requirements, 10%employees met the exceeded minimum requirements, 20%met minimum requirements, 10% were not able to met the minimum requirements of the company. • Evaluate the performance in unsupervised condition
unsuccess 11% more less less 33% more 56% unsuccess
Interpretation Out of 50 employees 56%employees said that their assignment became very successful even when there were no guidelines of the company, 33% employees got less success, 11%became unsuccessful. • Acquired skill to gain competitive advantage
0.7 0.6 0.5 PERCENTAGE 0.4 0.3 0.2 0.1 0
Series1 25% Series2
3% managerial technical communication other
Interpretation Out of 50 employees 70% aquired the managerial skill from their current position, while 3%technical, 25%communication, 2%said other skill like stress handling, finance related knowledge.
• Measuring the creativeness in terms of showing initiative
0.7 65% 0.6 PERCENTAGE 0.5 0.4 0.3 0.2 0.1 0 displayed considerable initiative displayed some initiative displayed little initiative displayed no initiative 20% 10% 5%
Interpretation Out of 50 employees 65%employees displayed considerable initiative to achieve their target while 20%displyed some initiative, 10%displayed little initiative, 5%displayed no initiative. • Checking the managerial skill in utilizing resources
0.8 0.7 0.6 0.5 PERCENTAGE 0.4 0.3 0.2 0.1 0 through motivation through contests and schemes through incentives and gifts 10% 10%
Series1 Series2 Series3
all the above
Interpretation Managerial skill in utilizing resources on the following two bases 1. manpower 2. money 80% Managers said that they are utilizing their resources through incentives and gifts, contests & schemes and through motivation while only 10%through incentives and gifts, 10%through contests and schemes and no one using motivation tool in utilizing resources • Performance evaluation criteria by the company
70% 60% 50% PERCENTAGE 40% 30% 20% 10% 0% on time on target on cost 1% 30%
Interpretation Out of 50 employees 69%said that they were evaluated by the company on the basis of time, cost and on time, 30%on target, 1%on timely basis and no one were evaluated on the cost basis. • Performance evaluation technique of the company
other method 6% checklist
cost accounting paired comparison Raking grading & Rating 0 0 0.2
Interpretation Every company have their techniques to review the performance of their employees. In ICICI life insurance 74% employees said that their performance review by Grading &Rating, 20% were by ranking, and 5%were by other method like career express. • Performance improvement suggestions from the employees side to the company
promotion salary training
enviroment 11% training 17% salary 22%
Interpretation Every employee wants some changes so that he/she perform better. In this regard ICICI’s employees also gave some suggestion to improve their performance. 28%said that should be promoted, 22%said salary enhancement, 17%wants more training programs, 11%wants changes in environment and 22%wants other like in Infrastructure, all the above mentioned. • Employees relation with the company
0.9 0.8 PERCENTAGE 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2% 2%
pr od uc tiv e ra t iv e al ld e f
un sa tis fa ct or y un pr od uc t iv e un co op er at iv e sa tis fa ct or y
Interpretation when the question was asked to the employees how they characterized their relation with the company 2% said satisfactory, 2%unsatisfactory, 11%productive, 85% said that their relation with the company was satisfactory, cooperative and productive. • Gender
co op e
Interpretation Sample size was taken 50 out of which 90%are the male employees, meanly 10%are the female employees. • Age group
80% 70% 60% PERCENTAGE 50% 40% 30% 20% 10% 0% 20-30 31-40 AGE 41-50 50-ABOVE Series1
Interpretation Out of 50 employees 70%were under the 20-30 age, 25%were 31-40 age, 5% were under 41-50.
The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weakness and the external situational factors as opportunities or threats. ICICI Life Insurance also has many strength and weakness and opportunity and threats. Strengths: Effective bank support in service: ICICI life insurance have full support in service by ICICI bank which have branches across India. Effective management team: ICICI management team is mixture of experience for guidance and youth for successful implementation. Varity in product and good service: ICICI have various plans for individual, group and rural sector and give more emphasis on providing good services to its customer. Brand name and goodwill of the company: Kodak have very good image in financial market. Good Rewards and Recognition program and effective advisors team: ICICI have good rewards and recognition program which are held time to time to motivate its employees and the advisors.
Self fund management house: ICICI is the only company in India which has its own fund management house. Stability of the employees: ICICI provide good facilities, salary and environment to its employees to make them more stable. Weakness:Small number of staff: total number of employees in KOTA branch is not enough and the office is also do not have need space as required. Lack of marketing: another major weakness with ICICI life insurance is lack of efforts in the marketing of product. There are many few areas where we can see any kind of marketing push made by company. Lack of co-ordination among the staff Lack of trust on company by the customer Weak in maintaining professional relation: another problem which I have personally seen is the lack of follow up. ICICI life insurance is not able to handle and use advisors in proper way. Opportunities:Huge market potential: - the Rajasthan market is very wide the only thing which is requiring covering it is right approach. But ICICI life insurance is only now in KOTA and Jodhpur and can spread branches across Rajasthan. Huge potential for marketing: - insurance sector now in its boom period so there is a very huge potential for marketing. People acceptance: - people are ready to use ICICI life insurance product but only thing is ICICI is not knocking their door at the right time. New investment plans: - company should be developed new investment plans that are different from other company.
More training programs for the employees and the advisors: - more training programs for employees beneficial to improve the co-ordination and both of the employees and the advisors will help the company in maintaining its goodwill in the market. Threats:Competitors:-the major threat is the kind of competitors in market. The competitors like ICICI prudential, HDFC standard life insurance, RELIANCE life insurance, SBI life insurance and many more. ICICI life insurance also facing a lot of competition from local players. New players: - new players are coming Good investment plans of its competitor: - other companies provide good investment plans. Delay in marketing decision: - another major threat is delay in marketing decision as this delay becomes a benefit for ICICI life Insurance competitor.
CONCLUSION The study undertaken at ICICI life insurance on Performance evaluation and Management System gave us a lot of exposure and knowledge in the field of Performance Management. Throughout the study, we analyzed the perception and
awareness level of employees regarding existing Performance Management System in ICICI. The procedure laid down in this system is quite clear to the concerned persons who have been given the job to measure the performance of various individuals. But yet the persons (sales manager) at the various levels for whom this policy has been implemented are not well aware of the procedure and policies followed by this system. This policy is capable of identifying the individual’s performance and is able to give information to the management relating to individual performance efficiency, his promotion criterion and the performance deficiency and means and ways to minimize his deficiency and take corrective measures to develop the skills of individuals which is required for the future needs of the organization. The performance of the sales manager is quite satisfied according the organization need but if we measured in terms of the team spirit and in using resources it will become quite low because they knew only selling how their targets can be achieved but they don’t know that how these targets can be achieved through the co-ordination or resources in a sequential way. One more important thing is that some employees do their work in stress and they show it in behave which makes the bad image of the company in the eyes of the outsiders. Apart from all this, the management could not implement this system in its true spirit, yet they are working hard to derive benefits from this. From This day this PMS is carried on as per stipulated procedures and policies then it is definitely
going to earn fruitful results for the company (i.e. ICICI life insurance) and will garnish the entire organization with its presence.
SUGGESTIONS • Company’s norms, policies and procedure should be clear in the mind of the employees so that they have proper idea because they are the representatives of the company. .
The communication package should be more effective. And every
information about pms process should be timely communicated to the employees.
Managerial skill should be developed in employees so that they give more
benefits to the company. • More training programs should be conducted to change the mind set of the
employees that their work is not only is selling but also overall development of the company. • Some team activities should be there so that the team sprit could be
generated. • In insurance sector stress is the main problem of the employees so some
stress handling sessions should be there so that they can do their work more effective way. • Induction program should be conducted so that new employees can adjust
themselves & perform well. • Some changes are also required in the infrastructure & working
environment. It should be more comfortable. • Superiors should give more time to employees while they are discussing on
the issue of Performance. So that an employee can discuss all aspects of his/her strengths and weaknesses. • Performance Management System (PMS) should be accepted in its true
sense; it means the policy should be followed as per stipulated method. One should not try to remove trunk from Ganesh’s Statue.
Feedback should be given regularly so that individuals could rectify their
performance deficiency within the short period and not after one assessment year.
ANNEXURE (QUESTIONNAIRE) ANALYZING THE PERFORMANCE EVALUTION AND MANAGEMENT PROCESS OF ICICI PRUDENTIAL OLD MUTUAL LIFE INSURANCE LIMITED KOTA
QUESTIONNAIRE 1. What is your job profile in this organization?
Are you satisfied from your job profile?
a) Yes b) No 3. Are you satisfied from the facilities provided by the company?
a) Yes b) No 4. What are your achievements in current job profile?
a) Grade________________________ b) Salary________________________ c) Reward and awards_____________ d) Other achievements_____________
5. Are your achievements satisfied the organization needs? a) Yes b) No 6. To what extent your reports and documentation accurate and complete? a) Considerably surpassed minimum requirements b) Exceeded minimum requirements c) Met minimum requirements d) Less than minimum requirements 7. Is there any assignment when you work unsupervised. a) Yes Is it successful or not?
a) More successful b) Less successful c) Unsuccessful 8. Which skill you have acquired in your present or previous position that makes you competitive for this position? a) Managerial skill b) Technical skill c) Communication skill d) Other skill 9. To what extent you displayed initiative in meeting requirements? a) Displayed considerable initiative b) Displayed some initiative c) Displayed little initiative d) Displayed no initiative 10. How you are utilizing your resources (manpower, money) to achieve your target within time and cost? a) Through motivation b) Through contests and schemes c) Through incentives and gifts d) All the above e) Any other_____________________________________________ 11. On what basis company reviews your performance a) On the basis of time b) On the basis of target
c) On the basis of cost d) All the above 12. What techniques are used by the organization to review your performance? a) Grading & rating b) Ranking c) Paired comparison d) Cost accounting e) Checklist f) Other methods 13. What steps should be taken by the organization to improve your performance? a) Promotion b) Incentive with salary enhancement c) More training programs d) Improvement in working condition e) Any other________________________________________________________
14. How you associate yourself with organization? a) Unsatisfactory b) Unproductive c) Uncooperative h) All D E F d) Satisfactory e) Productive f) cooperative
PERSONAL DETAILS------------------------------------------------------------------------------------------------------------------------(a) Name: - -------------------------------------------------------------------------
(b) Gender: -
(c) Age: -
(1) 20-30 (3) 41-50
(2) 31-40 (4) 50-above
(d) Address: - ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------68
---------------------------------------------------------------------------------------------------(e) City -----------------------------. Phone No……………….. . (f) Marital Status: - (1) Single (g) Designation(h) Educational Background……………………………………………………… (2) Married Mobile No…………………..
BIBLIOGRAPHY • Kothari, C.R.(2005), Research Methodology • C.B. Mamoria, S.V. Gankar, Personnel Management • Aswathappa, Human Resource & Personnel Management • www.humanresources.about.com
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www.ICICI. Com www. MyICICIlife.com www.ICICI life insurance.com