Birla Sunlife Insurance 100

A REPORT
ON
ORGANIZATIONAL STUDY
Birla Sun Life Insurance

Limited
Submitted in partial fulfillment of the requirements
of the M.B.A Degree Course of Bangalore University
Mr. Rama Krishna Raju T

Register Number: 06XQCM6101
Under the Guidance and Supervision

Of
Mr. Rudra Murthy
Professor
M.P.BIRLA INSTITUTE OF
MANAGEMENT
Associate Bharatiya Vidya Bhavan
# 43, Race Course
Road
Bangalore-560001
July - August
2007
M P BIRLA INSTITUTE OF MANAGEMENT 1

PR IN CIPAL ’S CER
TI F I C ATE
This is to certify that the organization study on Birla Sun Life Insurance,
Bangalore has been prepared by Mr. Rama Krishna Raju T bearing
the
registration no. 06XQCM6101 under the guidance and supervision of Mr.
Rudra Murthy, Professor, MPBIM, Bangalore.
PLACE: Bangalore Dr. N S Mallavali

DATE: (Principal)

PR IN CIPAL ’S CER
TI F I C ATE
Bangalore has been prepared by Mr. Rama Krishna Raju T bearing
the
registration no. 06XQCM6101 under the guidance and supervision of Mr.
Rudra Murthy, Professor, MPBIM, Bangalore.
PLACE: Bangalore Dr. N S Mallavali

DATE: (Principal)

GUIDE ’S CER
TIF ICA TE
Bangalore, prepared by Mr. Rama Krishna Raju T bearing the
registration no.06XQCM6101 is a bonafide work done, carried under my
guidance and supervision during the academic year 2006-08 in partial
requirement for the award of MBA degree by Bangalore University. To the
best of my knowledge this report has not formed the basis for the award of
any other degree or diploma.
PLACE: Bangalore Mr. Rudra Murthy

DATE: (Professor)

COM PAN Y CER TIFICAT
E
Birla Sun Life Insurance

Limited
This is to certify that has completed his
project, under my guidance during Jul& Aug 2007on the topic titled
“Organization
study”
His Conduct was during this period.
Place: BANGALORE
Date: Signature
Name
Designation
of the guide
Office Seal

DECLARATION
I hereby, declare that this internship report entitled . An Organization

Study
at Birla Sun Life Insurance Limited, Bangalore submitted in partial
fulfillment for the award of Master of Business Administration of
Bangalore University is a record of independent work carried out by me
under the guidance of Prof. Rudra Murthy faculty member, M. P. Birla
Institute of Management Studies, Bangalore.
I also declare that this report is a result of my own effort and has not been
submitted earlier for the award of any degree or diploma of Bangalore
University or any other University.
Place: Bangalore Rama Krishna Raju T

Date: REGD.NO: 06XQCM6101

A ck n o w le d g em en
t
At the outset, I would like to express my deep sense of gratitude and sincere
thanks to Dr. Mallavali, Principal, M.P.BIRLA INSTITUTE OF MANAGEMENT,
Bangalore, for providing an opportunity to discover the corporate world, from a
close perspective.
Prof. Rudra Murthy, my professor and internal guide for this project to whom I
am deeply grateful for his constant support and guidance without which it would
not have been possible for me to complete this project in time.
I take this opportunity to extend my sincere gratitude to Mr. Ranjan Anand,

Agency Manager, BSLI for giving me an opportunity to undertake internship
training and the project on the topic .Competency Mapping. in the esteemed
organization.
I would also like to express my heartfelt wishes to BSLI, for making these 2
months a stepping-stone for my career.
I convey my gratitude to all the staff members of Marketing Division for their
kind cooperation through out my project.
Finally, I thank my dearest Parents for their continued support.

Ex ecu t iv e S u m m a
ry
Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance
Solutions in India. BSLI has cemented its position as a leading player in the
private life insurance industry within 4 years of its inception. Its main focus
on investment linked insurance products supported its leadership in product
innovation. Its multi-dimensional channels offered convenient channels for
sale of the products to customers. It had been maintaining corporate
governance and a high degree of transparency in all business practices and
procedures. It had a strong fundamentals based on Aditya Birla Group’s
local insight and sun life financials global expertise.
The company chosen was Birla Sun Life Insurance ( BSLI) . The reason
behind this was to understand the expertise it has developed and skills it has
owned, especially in the field of marketing its products as it is the booming
industries in India.
Learning really takes place outside the classroom. I stand a witness to this
statement. The in sight of knowledge that I acquired in the two months of
internship with BSLI was quite impressive. The opportunity I received to
apply my knowledge and skills in the organization gave me a practical view
point to the whole system of learning.

The main objective of the internship was to imbibe a practical approach in
the students towards the knowledge gained at the classroom level. The
internship at BSLI has given me the right perception and has had a positive
effect on the kind of learning that I got at the M.P. Birla Institute of
Management,
Bangalore.
It was a very good experience for me to work during this tenure. I am glad
that I have learnt so much in such little time. It has boosted my confidence
and has raised my spirits. I can confidently say that my knowledge has
improved in a very short time I would like to thank the entire Marketing
department at the BSLI for their constant support.

Contents
CHAPTER-1 THEORYTICAL SETTING

CHAPTER-2 ORGANISATION STRUCTURE
CHAPTER-3 OPERATIONAL FUNCTIONAL
DEPAREMENTS AND
PERFORMANCE EVALUATION
CHAPTER-4 AWARDS AND ACHIVEMENTS
CHAPTER-5 RECOMMENDATIONS AND
SUGGESTIONS
CHAPTER-6 CONCLUSIONS

Chapter 1
INTRODUCTION
Organization structure involves formal and recognized

s t r u c t u r e w h e r e i n e a ch a n d e v e r y i n d i v i d u a l a n d group
h a v e a d e f i n i t e r e l a t i o n sh i p w i th e a ch other, h a ve a
sp e c i f i e d a r e a t o exist, f u n c t i o n to perform, a u th o r i t y to
m o b i l i ze resources, o b l i g a t i o n t o act, r e sp o n si b i l i t y
for achieving
the
performance. o b j e Ic t i ve
is a n d a c c o uof
arrangement n t a bactivities
ility for their
and
assignment of personal to their activities in order to
achieve the organizational goal. Organization
structure encompasses six Major areas with in
organization. These are Work specialization
Departmentalization
Chain of command Span
of control
Centralization and decentralization
Objectives of the study:
1) ) T o u n d e r s t a n d t h e o r g a n i za t i o n structure/ hi er ar ch y
of the company
2) ) T o i d e n t i f y va r i o u s d e p a r t m e n t s i n t h e
organization and the functioning of the same.
3) ) T o u n d e r s t a n d th e v a r i o u s r e sp o n si b i l i t i e s a n d duties
carried out by each department.

4 ) The study is aimed at understanding how an
organization practically works in the real situation.
5) To undertake a small assignment in order to know
the perception and attitudes of the people towards Birla
sun Life Insurance policies.
6 ) T o o f f e r s u g g e s t i o n s b a s e d u p o n t h e f indings.
Scope of the study:
The study is l imited to Birla Sun Life Insurance
Company Limited Bangalore branch.
Source of data:
P r i m a r y data: O n e t o o n e i n te r vi e w s w i t h departmental
heads and few subordinates.
Secondary data: Secondary data are collected f rom the company’ s
website, newspaper articles and magazines. LIFE INSURANCE
L i f e i n su r a n ce i s a co n t r a c t p r o v i d i n g f o r a p a y m e n t o f a
su m o f m o n e y t o t h e p e r s o n a s su r e d o r f a i l i n g h i m to
the person e n ti t l e d to receive the same on t

he
happening of certain event. Uncertainty of death is
h e r e n t i n h u m a n l i fe. I t i s t h i s r isk, h i g h g i v e s r i s e t o the
n e c e s si t y for some form of protection against the
f i n a n c i a l l o s s a r i si n g f r o m death. I n s u r a n c e substitutes
t h i s u n ce r t a i n t y b y certainty. T h e o b j e ct i ve o f insurance
i s normall y t o provide: a. F a m i l y p r o t e c t i o n and
b. P r o v i si o n f o r o l d age.

THERE ARE 3 TYPES OF LIFE INSURANCE POLICIES:
i) T e r m in s u ra n ce plans:
P u r e l i f e co v e r s w h e r e p o l i c y h o l d e r p a y s f o r t h e r isk
co v e r a n d d o n o t e x p e c t t o r e c e i ve a n y t h i n g e l s e in
return. T e r m i n s u r a n ce i s n o w a va i l a b l e i n India. Opting
f o r s u ch p o l i c y w i l l i m p r o v e t h e e f f i c i e n c y o f t h e policy
premium and enable policy holder for a bigger r isk
co v e r f o r t h e s a m e cost. T h e se a r e te r m insurance
plans without interest.
i i) W h o l e l i f e in su r a n c e plans:
W h o l e l i f e p o l i ci e s r e q u i r e th e p o l i c y h o l d e r to pay
premium throughout his/ her l i fe and cover r isk for the
w h o l e l i fe. T h e p o l i ci e s w i t h o u t p r o f i t s a r e cheaper.
i i i) E n d o w m e n t in su ra nc e plan:
Endowment policies are costliest and among this group, money back
policies involve paying highest premium. They give customers
maturity benefits ( normally, sum
assured) and additional profits by way of bonus,
guaranteed additions, loyalty bonus, etc

D E F I N I T I O N O F S O M E T Y P E S O F POLICIES :
1 ) Annuity
A n a n n u i t y i s a s t e a d y s t r e a m o f e q u a l p a y m e n t s that
one receives every year, or every month either for l i fe o r
a f i x e d n u m b e r o f years, a s r e t u r n a f t e r m a ki n g an
i n v e s t m e n t e i th e r a s a lump- su m o r th r o u g h install ments
p a i d o v e r a c e r ta i n n u m b e r o f years, sp e c i f i c s u m Upon
t h e d e a t h o f t h e annuitant, o r a t t h e e xp i r y o f th e period
f i x e d f o r a n n u i t y payments, t h e i n ve st e d a n n u i t y f u n d is
r e f u n d e d u s u a l l y a l o n g w i t h a sm a l l bonus. Annuities
d i f f e r f r o m a l l o t h e r f o r m s o f l i f e i n su r a n c e i n one
fundamental way. They do not provide any insurance
co v e r b u t o f f e r a g u a r a n t e e d i n co m e f o r a c e r ta i n period
o r f o r l i fe.
T yp i c a l l y annuities are bought to generate income
d u r i n g one’ s r e t i r e d l i fe, w h i ch i s w h y t h e y a r e also
ca l l e d P e n s i o n Plans. A n n u i t i e s p r o v i d e a so l u t i o n to
t h e b i g g e s t f i n a n c i a l i n s e cu r i t y o f o l d a g e a f t e r one
r e t i r e s a n d t h e i n c o m e f r o m sa l a r y ceases.
2 ) Endowment:
E n d o w m e n t p o l i ci e s c o ve r t h e r i s k f o r a s p e c i f i e d period
at the end of whi ch the sum assu red is paid back to the
p o l i c y h o l d e r a l o n g w i t h t h e b o n u s a c c u m u l a t e d during

the term of the policy. The payment of the endowment
t o t h e p o l i c y h o l d e r d e p e n d s u p o n t h e co m p l e t i o n o f the
policy’ s te r m w h i ch r i g h t l y a c co u n t s f o r t h e p o p u l a r i t y
of endowment policies. Typically, one’ s r e s p o n si b i l i ty for
the f inancial protection of the family reduces
significantly once the children are grown up and
independently settled. The focus then shifts to
m a n a g i n g a sm a l l e r f a m i l y p e r h a p s o n l y o n e se l f and
one’ s spouse after retirement. This is where the
endowment. The original sum assured and the
accumulated bonus, received back comes handy.
3 ) Money back:
Unlike endowment plans, in money back policies, the
p o l i c y h o l d e r g e t s p e r i o d i c su r v i va l b e n e f i t s d u r i n g the
term of the poli cy and a lump sum amount on surviving
i t s term. I n t h e e ve n t o f d e a t h d u r i n g t h e t e r m o f the
policy, the beneficiary gets th e full su m assured,
w i t h o u t a n y d e d u c t i o n s f o r th e a m o u n t s p a i d t i l l date,
and no further premiums are required to be paid.

Industry Profile
A b r i e f h i st o r y o f t h e i n su r a n ce industr y:
The insurance sector in India has become a full

circle f rom being an open competitive market to
n a t i o n a l i z a t i o n a n d b a c k t o a l i b e r a l i z e d m a r k e t again.
Tracing, t h e d e ve l o p m e n t s i n I n d i a n i n su r a n c e sector reveals
t h e 360 - d e g r e e t u r n w i t n e s se d o v e r a p e r i o d of almost
t w o centuries.
Life insurance industry:
The business of l i f e i n su r a n c e in India in i ts
existing form started in the year 1818 with the
e s t a b l i s h m e n t o f t h e O r i e n ta l l i f e i n su r a n c e co m p a n y in
Calcutta.
I m p o r t a n t m i le s t o n e s in t h e l i f e i n su r a n c e busine ss
in India:
1912 The Indian l i fe assurance companies’ act enacted

:
a s t h e f i r s t s t a t u t e t o r e g u l a t e t h e l i f e insurance
business.
1928 t h e I n d i a n i n s u r a n ce co m p a n i e s a c t e n a c t e d to
:
e n a b l e t h e g o v e r n m e n t t o co l l e c t s t a t i s t i ca l information
a b o u t b o t h l i f e a n d n o n l i f e i n s u r a n ce businesses

1938 : E a r l i e r l e g i s l a t i o n co n s o l i d a t e d a n d a m e n d e d to
by the insurance act with the objective of protecting the interest of the
insuring public.
1956 : 245 I n d i a n a n d f o r e i g n i n su r e r s a n d provident
so c i e t i e s t a ke n o v e r b y th e ce n t r a l g o v e r n m e n t a n d are
nati onali zed. L IC fo r m e d b y a n a c t o f parliament, which
i s L IC Act, 1956 , w i t h a ca p i t a l co n t r i b u t i o n o f Rs. 5
crore from the government of India.
I n s u ra n ce S e c t o r
Reforms :
In 1993 , Malhotra committee, headed by former

Finance secretary and RBI governor Mr. R. N. Malhotra, was formed
to evaluate Indian insurance industry and recommend i ts future
direction.
The Malhotra committee was setup with the

o b j e c t i v e o f co m p l e m e n t i n g t h e r e fo r m s i n i t i a t e d i n the
f i n a n c i a l sector, t h e r e fo r m s w e r e a i m e d a t “ cr e a t i n g a
m o r e e f f i ci e n t a n d c o m p e t i t i v e f i n a n c i a l s y s t e m suitable
for the requirements o f the economy kee ping in mind
the structural changes currently underway and
r e c o g n i z i n g t h a t i n s u r a n c e i s a n i m p o r t a n t p a r t o f the
o ve r a l l f inancial system were i t was n e c e s sa r y to
a d d r e s s t h e n e e d f o r s i m i l a r reforms…”

V) C u st o m e r service:
1. . L IC sh o u l d p a y i n t e r e s t o n d e l a y s i n payments
b e y o n d 30 days.
2. . I n s u r a n c e co m p a n i e s m u s t b e encouraged
to se t u p u n i t l i n ke d p e n si o n plans.
3. . C om pu te r i za ti on o f o p e r a t i o n a n d u p d a t i n g
of technology t o b e ca r r i e d o u t i n t h e insurance
industry.
The committee emphasized that in order to improve
t h e c u s t o m e r se r v i ce s a n d i n cr e a s e t h e co ve r a g e o f the
i n s u r a n c e i n d u s t r y sh o u l d b e o p e n e d u p t o completion.
B u t a t t h e s a m e t ime, t h e c o m m i t t e e f e l t t h e n e e d to
e x e r ci s e c a u t i o n a s a n y f a i l u r e o n t h e p a r t o f new
p l a ye r s c o u l d r u i n th e p u b l i c co n f i d e n ce I t h e industry.
Hence, I w a s d e ci d e d t o a l l o w c o m p e t i t i o n i n a
l imited way by stipulating the minimum capit al
requirement of Rs. 100 cores, The committee felt the
need to provide greater autonomy to insurance
co m p a n i e s i n o r d e r t o i m p r o v e t h e i r p e r fo r m a n ce and
enable them to act as independent companies with
economi c motives . For this purpose, i t had proposed
se t t i n g u p a n in de pe n de n t r e g u l a t o r y body.

Life Insurance Industry: Present context :
The l i fe insurance industry has rebound,
d e m o n s t r a t i n g a g r o w t h r a te o f 51 % i n n e w business
premium in the third year of privatization.
L i fe i n su r a n ce p r e m i u m s r o s e t o R s 18 , 710 core
( R s 187 . 10 million) i n f i s ca l 2006 f r o m R s 12 , 300 core
( R s 123 billion) i n 2004 - 05 .
The massive growth comes chiefly on the back
of sales o f unit- l i n ke d plans, g r o u p p o l i ce s a n d
pension plans.
T h e In d i a n i n s u r a n ce se c t o r h a s w i t n e s s e d new
p r e m i u m i n co m e o f R s 34 , 828 co r e ( R s 348 . 28 billion) in
f i s c a l 2006 . T h i s r e f l e c t s a g r o w t h r a te o f 33 % over f
i s ca l 2005 ’ s a g g r e g a te f i g u r e o f R s 26 , 203 . 8 c o r e ( Rs
262 . 03 billion). A g a i n s t a g r o w th r a t e o f 51 % f o r l i fe
i n s u r a n c e business, non- l i f e i n s u r a n ce p r e m i u m s rose
b y 16 % t o R s 16 , 118 co r e ( Rs 161 . 18 billion) i n f iscal
2006 .
A s i g n i f i ca n t s h a r e o f t h e n e w b u s i n e s s h a s come
o n t h e b a c k o n sa l e o f g r o u p policies.
T h e L i fe I n su r a n c e C o r p o r a t i o n o f India, LIC, alone
m o p p e d u p R s 2 , 332 . 85 cr o r e ( R s 23 , 32 billion) a s i t
i n s u r e d o ve r 30 l a kh l i v e s u n d e r t h e va r i o u s group
schemes. LIC’ s g r o u p b u s i n e s s r e a c h e d n e w heights
during the year, recording a 119 % g r o w t h in new

premium income and 50 % increase in the number of
l i ve s covered.
Today, t h e t o t a l fo r e i g n d i r e c t i n v e s t m e n t i n the
I n d i a n i n su r a n c e se c t o r i s p e g g e d a t R s 1 , 021 cr o r e ( Rs
10 . 21 billion) w h i l e t h e paid- u p ca p i ta l o f th e insurance
se c t o r s t a n d s a t R s 5 , 518 c r o r e ( R s 55 . 18 billion).
P r e se n t l y t h e r e a r e 13 L i f e I n s u r a n c e c o m p a n i e s in
t h e I n d i a n market, o u t o f which, o n l y L IC a n d S B I Life
Insurance are government organizations and the
remaining are private players.
The following is the l ist of l i fe insurance companies in the
Indian market:
1 ) Life insurance Corporation of India 2 )
Allianz Bajaj Life Insurance
3 ) HDFC Standard Life Insurance 4 )
TATA AIG Insurance
5) ) I N G V y s y a L i fe Insurance
6) ) I C I C I P r u d e n t i a l L i fe
Insurance 7 ) B i r l a S u n L i f e
Insurance
8 ) M e t L i f e I n d i a Insurance
9 ) A M P Sanmar
10 ) SBI Life Insurance 11 )
Aviva Life Insurance 12 ) Max
New York Life

The Insurance Regulatory and Development
Authority:
Reforms in the insurance sector were initiated with
t h e p a s sa g e o f t h e I R D A B i l l i n P a r l i a m e n t i n
December 1999 . T h e I R D A si n c e i t s i n c o r p o r a t i o n a s a
statutory b o d y i n A p r i l 2000 h a s f a s t i d i o u s l y s t u c k t o i t s
schedule o f f r a m i n g r e g u l a t i o n s a n d r e g i s t e r i n g t h e
p r i va t e sector insurance companies.
The other decisions take simultaneously to provide the
supporting systems to the insurance sector and in particular the l i fe
insurance companies were the launch of the IRDA’ s online service for
issue and renewal of l icenses to agents.
T h e a p p r o v a l o f i n s t i t u t i o n s f o r i m p a r t i n g t r a i n i n g to
a g e n t s h a s a l s o a s s u r e d t h a t t h e i n s u r a n ce companies
w o u l d h a ve a t r a i n e d w o r k fo r c e o f i n s u r a n ce a g e n t s in
p l a ce to se l l t h e i r products, w h i c h w e r e e xp e c t e d t o be
introduced by early 2001 .
Since being set up as an independent statutory

b o d y t h e I R D A h a s p u t i n a f r a m e w o r k o f globally
co m p a t i b l e regula ti ons. I n t h e p r i v a te se c t o r 12 l i fe
insuran ce and 7 general in surance companies have
been registered.

Company Profile:
B i r l a Su n l i f e I n su r a n c e C o m p a n y i s h e a d quartered
a t M u m b a i a n d h a s e s t a b l i sh e d a s tr o n g p r e s e n c e i n the
c i t i e s o f A h m e d a b a d , Baroda, B a n g a l o r e Chandigarh,
Chenni, Gurgaon, Hyderabad, Indore, Jaipur,
Kanchipuram, Kanpur, Kolkata, Lucknow, Meerut,
Mysore, New Delhi, Noida, Patna, Pune, Rajkot, Surat,
Varanasi and Visakhapatnam.
B a ck g ro u n d a n d i n ce p ti o n o f company:
Sun Life Financial
Sun Life Financial is a leading international

f i n a n c i a l se r vi ce s organization. W i t h a h i s t o r y t h a t dates
b a c k t o 1871 , S u n L i fe F i n a n c i a l h a s e v o l ve d f r o m a
s i n g l e m u tu a l l i f e i n s u r a n ce t o o n e o f th e m o s t highly
r a t e d i n s u r a n ce a n d w e a l t h m a n a g e m e n t i n s t i t u t i o n s in
t h e world, S u n L i fe F i n a n c i a l k n o w s i t s va l u e l i e s in
m o r e t h a n a s s e t s a n d history, I t a l so l i e s i n t h e culture
o f i n t e g r i t y a n d t h e p u r su i t o f e x c e l l e n ce t h a t have
m a r ke d a l l o f t h e organization’ s endeavors. Today, the
su n l i f e f i n a n c i a l Gr o u p o f co m p a n i e s a n d p a r t n e r s are
r e p r e se n t e d g l o b a l l y i n Canada, t h e U n i t e d States, the
Philippines, Japan, Indonesia, India and Bermuda.

Sun Life in India:
S u n l i fe’ s I n d i a n i n s u r a n c e o p e r a t i o n s w i t h t h e the
A. V. B i r l a g r o u p m a y b e j u s t fo u r ye a r s young, b u t i t wa s
more than 100 yea rs ago--- 110 year s to be precise—
t h a t s u n l i f e i n s u r a n ce a p p o i n te d i t s f i r s t a g e n t in
Mumbai ( then of course known as Bombay), a
gentlemen by the name of Ira B. Thayer. In May 1892 ,
Sun L i fe i s su e d i t s f i r s t policy, therein the policy
n u m b e r 23200 , a n d s o o n o p e n e d i t s f i r s t o f f i c e on
Esplanade Road. The Canadia n Company has never looked
back ever since.
T h e fo u n d a t i o n o f t h e a e s t h e t i c C a n a d a Building
was laid in Ma y 1902 , when the board o f Directors
a p p r o ve d t h e p u r c h a s e o f a b u i l d i n g to h o u se S u n Life’ s
o p e r a t i o n i n t h e subcontinent. A y e a r later, L o t 71 on
H o r n s b y R o a d w a s p u r c h a se d t o b u i l d th e structures. A
popular architectural f i rm, Gostling, chambers and
Fritchely, was pressed in to action and Canada Building
w i t h i t s awe- i n sp i r i n g ye l l o w a n d w h i t e s to n e façade
came into being in 1905 . intricacies l ike the maple leaf,
b e a ve r a n d r i s i n g su n l o g o co u p l e s w i t h t h e ch a r i o t
of the
Sun logo added to the beauty of this grand
structure.

Expansion Times :
W h e n t h e P r i n ce o f W a l e s v i si te d i n 1921 i t w a s the
Canada Building that greeted the r o ya l t y in regal
sp l e n d o r – t h e o f f i c i a l s h a d i l l u m i n a t e d t h e b u i l d i n g a t a
co s t o f Rs. 1000 . I n 1925 , S u n L i fe e x p a n d e d operations
b y s e t t i n g u p d i s t r i c t o f f i ce s i n C a l c u t t a a n d Madras, in
a d d i t i o n t o t h e B o m b a y branch. T w o ye a r s later, the
L a h o r e o f f i ce i n to being, f o l l o w i n g w h i c h o p e r a t i o n s at
D a c c a w e r e ki c k e d off. 1929 sa w a n o f f i ce i n L u c k now,
f o l l o w e d b y C o l o m b o a y e a r later. I t w a s o n l y i n 1952
that the New Delhi office was established.
Aditya Birla Group – The Indian MNC:

Aditya Birla Group is India’ s second largest
business house. I t enjoys a dominant position in all the
se c t o r s i n w h i ch operates. T h e A d i t y a B i r l a G r o u p is
- The world s largest producer of viscose staple
f iber
- T h e l a r g e s t s i n g l e l o c a t i o n r e f i n e r o f p a l m oil,
- The world’ s largest producer of carbon black.
I n I n d i a t h e g r o u p i s t h e s i n g l e l a r g e s t p r o d u c e r of
- V i s c o se f i l a m e n t yarn
- Aluminum
- Grey cement

- Wh ite cement and
- Rayon grade pulp
- P e t r o l e u m ( HINDALCO)
The group is also

- T h e o n l y p r o d u c e r o f l i n e n i n t h e textile
industry in India.
- The leader in the ready- to- wear branded apparel.
F o r s e ve r a l d e c a d e s now, t h e A d i t ya B i r l a Group
h a s w o n t h e t r u s t a n d r e sp e c t o f i t s 72 , 000 employees
a n d 8 l a k h investors. T h e group’ s t u r n o ve r exceeds Rs.
260 b i l l i o n a n d h a s a n a s se t base, w h i c h i s in e x c e s s o f
Rs. 257 billion.
T h e A d i t y a B i r l a g r o u p h a s o ve r 75 b u s i n e s s units
in India and overseas. I t has operations in Canada,
U. S. A; U. K, Thailand, Phil ippine s, M a l a y s i a a n d Egypt.
I t s i n t e r n a t i o n a l o p e r a t i o n s co n t r i b u t e g r e a t l y t o India’ s
g r o w t h a n d t o t h a t o f S o u th E a s t Asia, m a k i n g i t India’ s
f i r s t t r u l y m u l t i n a t i o n a l con glomera te .
T h e f l a g s h i p c o m p a n i e s o f t h e A d i tya B i r l a Group
i n c l u d e s o m e o f t h e l a r g e s t a n d w e l l kn o w n companies
i n I n d i a s u c h a s Gr a s i m In d u s tr i e s Ltd;
Hindalco Industries Ltd; I n d i a n A l u m i n u m Company
Ltd; Indian Rayon Industries Ltd, Indo Gulf Corporation

Ltd, G l o b a l F i n a n ce Ltd. T h e g r o u p h a s f o r g e d power
relationships with large co r p o r a t i o n s l i ke Hindustan
Petroleum, Tata and powerg en PC and AT & T.
Growing Financial Services Clout:

Birla Sun Life joint venture partner, Sun Life
F i n a n c i a l i s o n e o f th e l a r g e s t g l o b a l i n s u r a n ce and
w e a l t h m a n a g e m e n t organi za tion s. S u n L i f e h a s been
o f fe r i n g l i f e i n su r a n c e i n C a n a d a s i n ce 1871 , w h i l e MFS
i t s s u b s i d i a r y c r e a t e d t h e f i r s t U S m u tu a l f u n d i n 1924 .
S u n L i f e h a s o p e r a t i o n s a r o u n d th e w o r l d i n United
States, U n i t e d Kingdom, Canada, Phil ippine s, Hong
Kong, B e r m u d a a n d I n d o n e s i a a n d o f f i ce s i n 21 key
markets throughout the world.
I t h a s t o t a l a s s e t s u n d e r m a n a g e m e n t CDN$ 328 billion
a s o n D e c e m b e r 31 , 2002 . I t h a s e m p l o ye e s w o r l d wide
and global distribution network of over 1 , 00 ,
000
distributors.
Sun Life has a global reputation as top

insurers with high profitability, persistency And
p r o d u c t i vi t y ratios, w h i c h i n t u r n r e f l e c t t h e underw riting
expertise of the company.
T h e t u r n o v e r o f t h e g r o u p i s g r o w i n g a t a steady
rate and is currently estimated to be in excess of

Rs. 260 Billion. T h e g r o u p h a s a s t r o n g a s s e t base
va l u e d a t Rs. 180 billion. T h e g r o u p i s w e l l r e s p e c te d in
t h e f i n a n c i a l m a r k e t s a n d a l l t h e g r o u p s to c k s command
a healthy market valuation – the total market
capitalization being nearly Rs. 150 billion.
N a t u r e o f b u si n e ss carried:
While the Aditya Birla Group contributes i
ts
kn o w l e d g e o f th e In d i a n market, S u n L i f e Financials
o f fe r s i t s g l o b a l e x p e r t i s e i n th e a r e a s o f p r o te ct i o n
of wealth m a n a g e m e n t services. Both the partners
are already engaged in the busine ss of asse t
management, r e t a i l d i s t r i b u t i o n a n d s t o c k broking. T h i s
partnership
has been now extended to Life Insurance after
Privatization of this sector.
A j o i n t ve n tu r e b e t w e e n t h e A d i t y a B i r l a G r o u p and
S u n L i f e f inancial, Birla’ s s u n l i f e i n su r a n c e f o r a ye d
into t h e l i f e i n su r a n c e a n d r e t i r e m e n t p l a n n i n g b u s i n e s s
by p i o n e e r i n g t h e u n i q u e unit- l i n ke d so l u t i o n s i n India.
In
just 2 yea rs of i ts launch the com pany ha s catapulted to
se c o n d p o s i t i o n i n n e w b u si n e s s p r e m i u m i n t h e highly
co m p e ti ti ve p r i va t e l i f e i n su r a n c e i n d u s t r y b a se d o n i ts

V i s i o n , Mission, Q u a l i t y Policy :
Vision:
“ To be provider of f inancial security to individuals and corporate”.
Mission:
To be the f i rst preference of our customers as a leading integrated
insurance provider of Insurance solutions superior value creation and
technology.
Quality Policy:
B i r l a S u n L i fe h a s p u t i n c a r e f u l l y d e s i g n e d s t r a te g i e s to
move to the leading position in the l i f e insurance
i n d u s t r y t h r o u g h p r o d u c t innovation, customer focus,
and cutting edge technology.

Product Profile:
Birla Sun Life insurance was the f i rst in India to
introduce Unit – Linked Life Insurance plans.
INDIVIDUAL LIFE PLANS
1) ) F l e x i L i f e L i n e Plan
2) ) F l e x i S a ve p l u s E n d o w m e n t Plan
3 ) F l e x i C a sh F l o w M o n e y B a c k Plan
4 ) B i r l a S u n L i f e T e r m Plan
5 ) C l a s s i c L i f e Premier
1 ) F le x i L i f e L i n e
Plan:
Unique Features:
a) The plan is a unit l inked non- participating plan which

gives efficient earnings in the long term.
b) Lifelong Insurance cover t i l l age 100 years in addition

to other durations available.
c) A choice of three Investment Fund Options: Protector,

Builder and enhancer, with the f reedom to switch between the
Investment Fund options anytime during the policy tenure.
d) Flexibility to make additional lump sum investments

( top ups) to increase the savings portion of policy.

e) Minimum Gu arante ed returns of 3 % p. a. o n premium
a n d a n y t o p u p amounts, n e t o f a l l Po l i c y Charges.
M o r e i m p o r t a n t l y th e e n ti r e u p s i d e i n t h e performance
of the Investment Fund is passed on to customer.
f ) Options to make tax f ree Partial Withdrawal f rom fund

Value anytime after three years.
g) S u r r e n d e r th e p o l i c y w i t h o u t p e n a l t y a n y t i m e a f t e r 4
policy years.
h) Increase the Sum Assured during the premium- paying

p e r i o d d e p e n d i n g o n l i f e i n su r a n c e requiremen ts.
i ) Convenient premium payment options: Short or

Regular paying period.
2 ) F l e x i S a v e P l u s E n d o w m e n t Plan:
Unique Features:
a) T h e p l a n i s a u n i t l i n k e d n o n p a r ti c i p a t i n g p l a n giving
efficient earnings in the long term.
b) A choice of three Investment Fund Options

:
Protector, Builder and Enhancer, with the f reedom to

switch between the Investment Fund Options anytime
during the policy tenure.
c) F l e x i b i l i t y t o m a k e a d d i t i o n a l l u m p su m investments
d) Minimum Guaranteed returns of 3 % p. a. on premium

a n d a n y t o p u p amounts, n e t o f a l l P o l i c y Charges. More
i m p o r t a n t l y t h e e n ti r e u p s i d e i n t h e p e r f o r m a n c e o f the
Investment Fund is passed on to customer.
e) O p t i o n s t o m a k e t a x f r e e P a r t i a l W i t h d r a w a l s f rom
fund Value, any t ime after three years.
f) ) Su r r e n d e r t h e p o l i c y w i t h o u t p e n a l t y a n y t i m e a fte r
4
policy years.
g ) I n c r e a se t h e S u m A s s u r e d d u r i n g t h e p r e m i u m paying
period dependi ng on your requirements.
3 ) F l e x i C a s h F l o w M o n e y B a c k Plan:
Unique Features:
a) T h e p l a n i s a u n i t l i n k e d non- p a r t i ci p a t i n g p l a n to give
efficient returns.
b) Tax free lump sum pay- outs, to take care of recurring needs.

c) A choice of three I n ve st m e n t Fund Options
:
Protector, Builder and Enhancer, with the f reedom to
switch between the Investment Fund Options anytime during the
policy tenure.
d) F l e x i b i l i t y t o m a k e a d d i t i o n a l l u m p su m investments
e) Minimum Guaranteed returns of 3 % p. a. on premium

a n d a n y t o p u p amounts, n e t o f a l l P o l i c y Charges. More
i m p o r t a n t l y t h e e n ti r e u p s i d e i n t h e p e r f o r m a n c e o f the
Investment Fund is passed on to customer.
f ) O p t i o n s t o m a k e tax- f r e e P a r t i a l W i t h d r a w a l s fund
Value anytime after three years.
g) Surrender the policy without penalty after 4 policy

years) Increase the Sum Assured during the premium paying period
any t ime depending on needs.
4 ) B i r l a S u n L i f e T e r m Plan:
Unique Features:
a) T h e p l a n h a s b e e n d e s i g n e d f o r p e o p l e w h o w a n t to
a va i l o f t h e b e n e f i t s o f l i f e i n su r a n c e a t l o w cost. I t i s a
l o w premium, p u r e r i s k co v e r a g e p l a n w h i c h t a k e s care

o f f i n a n c i a l c o m m i tm e n t s t o w a r d s f a m i l y o r dependants,
should anything unfortunate happen to customer.
b) R i d e r s - A c c i d e n t a l D e a t h & D i s m e m b e r m e n t Rider,
Critical I l l n e s s Rider, Waiver Of Premium Riders
a va i l a b l e a l o n g w i t h t h e plan, o n e ca n a v a i l o f r iders
even in the case of Single Premium Policy.
c) Favorable Term - Favorable Premium Rates for

Female Clientsd) Age Benefit - Maximum age for
maturity i s 70 years
5 ) C l a s s ic L if e premier:
Unique Features:
a ) T h e p l a n i s a u n i t l i n ke d n o n p a r t i c i p a t i n g plan
b ) O n e h a s t h e ch o i c e o f s i x In ve s tm e n t F u n d Options
w i t h t h e f l e x i b i l i t y t o a l l o c a te th e p r e m i u m s i n varying
p r o p o r t i o n s i n to th e d i f f e r e n t F u n d O p t i o n s o r even
switch from one or more Investment Fund( s) to
other Investment Fund( s).
c) One can top up Fund Value wheneve r one has
a d d i t i o n a l savings. T h e m i n i m u m a m o u n t o f t o p ups
w i l l b e Rs. 10 , 000
d) T h e plan offers further benefits in the form of
a d d i t i o n a l units, w h i c h w i l l b e a d d e d to the Fund

V a l u e a t th e e n d o f t h e 10 t h p o l i c y y e a r a n d a t t h e ed
o f e v e r y 5 t h y e a r thereafter
e) There is high l iquidity in the form of Partial
Withdrawals and surrender benefits. f)
D e a t h benefits, w h i c h w i l l b e h i g h e r o f t h e F u n d Value
or Sum Assured, reduced by the applicable partial withdrawals
A r e a s o f Operation:
Birla Sun l i fe Insurance is present in India and

spread across 1000 towns in India. Apart f rom this i t ’ s doing
business even in the rural segment.
Ownership pattern:
The Aditya Birla group holds 74 % of the equity in Birla Sun Life
Insurance while the Sun Life group holds the balance 26 %. Both the
companies are committed to enhance the capital of the plan
projections.
Competitors’ information:
The company faces two types of competitors:
• D i r e c t Competitors
• I n d i r e c t Competitors

Directly the company shall have to face the
onslaught of LIC, the large customer base, accumulated
funds, well- e s t a b l i s h e d m a r k e t i n g m a c h i n e r y etc.
T h i s i s j u s t o n e h a l f o f t h e story; t h e r e w o u l d be
t h e r e c e n t l y “ o f f – the- b l o c k insurers” w h o w o u l d be
co m i n g o u t w i t h a v a r i e t y o f p r o d u c t va r i a t i o n s and
m a n y o f t h e m w i th p a r a l l e l f i n a n c i a l a c t i v i t i e s and s i m i l a r
products. J u s t t o n a m e few: I C I C I – Prudential, HDFC-
Standard Life, TATA- AIG, OM- Kotak, Max- New
York, SBI Life, etc.
These newer competitors are l ikel y to be
a g g r e s si v e a n d innovative. T h i s d i r e c t com petition, on
t h e f l i p side, co u l d r e su l t i n m a r ke t expansion. The
Company shall also be f a ci n g co m p e t i t i o n is more
damaging. I n d i r e c t c o m p e t i t i o n s h o w s u p i n t e r m s
of other f i n a n c i a l i n s t r u m e n t s l i k e B a n k FSs, PPF, NSCs,
ULIP, S t o c k s l a n d o t h e r s i m i l a r sa v i n g s instrumen ts.
I n v i e w o f t h e c h a n g i n g s ce n a r i o a s w e l l a s the
nature of the market we operate in, the task of
establishing a dynamic, p r o g r e s s i v e a n d a successful
co m p a n y i s b o t h q u i t e d a u n t i n g a n d chall enging . Some o f
t h e c h a l l e n g e s cu r r e n t l y f a ce d a n d t o b e f a c e d in future
are:
1 . F i n d i n g a suitable, m o t i v a te d team
2 . T a i l o r i n g a n i n n o v a t i v e p r o d u c t mix
3 . I d e n t i f y i n g a p o t e n t i a l m a r k e t niche’

4 . S e r v i ci n g the client to the client’ s complete
sa ti sfaction
5 . D e si g n i n g a highly efficient system of controls,
a n a l y s i s a n d t rouble- shooting
6 . Managing the funds better to consistently outperform the market
Infrastructure Facilities
:
1 . All branches are computerized and l inked in a wide
area network
2. There is inter branch connectivity a well as
connectivity with the head office
3. The main back and policy ad mi n i str a ti on is a
Rs. 6000 based COBOL- java system running on AIX with
DB 2 d a ta b a s e a n d a H T M L f r o n t end
4. The sales i l lustration system is an interface system
w i t h Ja va classes. T h e a c c o u n t i n g s y s t e m u s e d i s Sun
Accounting system, which interfaces with the Rs. 6000
5. Birla Sun Life would provide Sales I l
lustration
S y s t e m s t o e ve r y d i s tr i b u t o r a n d i t ca n b e l o a d e d on
laptops also.
6. B S L I w o u l d b e h a r n e s s i n g t h e I T a d v a n ta g e for
improving the effectiveness and efficiency of i ts
distribution channels.

Chapter 2
Organizational structure:
ORGANISATION
CEO
VP VP VP CHANNEL
MKT DSF CFO GROUP SALES
REGIONA
L
MANAGE BRANCH BRANCH BRANCH
R MANAGER MANAGER MANAGER
MARKETING MARKETING MARKETING

MANAGER MANAGER MANAGER
AGENCY AGENCY AGENCY

MANAGER MANAGER MANAGER

W o r k Fl o w Model:
APPLICATION
ADDITION OF RIDERS
REQUIREMENT
ADDITION OF RIDERS
CHEQUE DISHONOUR
DISPATCH
REFUND
CLIENT SERVICES ID
COMMUNICATION CELL

1 ) Application:
I t contains all the information of proposer.
2 ) Addition of riders:
The customer if needed can take additional

i n s u r a n c e c o ve r b y t a k i n g a t e r m r ider, i f h e w a n t s extra
co v e r a g e fo r a c c i d e n t s h e c o u l d t a ke a c c i d e n t a l r
ider and i f he wants to be covered for critical
medical o p e r a t i o n s h e co u l d t a k e c r i t i c a l i l l n e s s r
ider. T h i s is t e r m e d a s a d d i t i o n o f r ider.
3 ) Requirement:
I t is the job of the underwriter that whenever a new

application is received by him, he evaluates the
cu s t o m e r b a s e d o n t h e i n f o r m a t i o n p r o v i d e d b y him
t h r o u g h t h e a p p l i ca t i o n a n d d e c i d e s w h e t h e r h e could
b e g i ve n i n s u r a n ce c o v e r a g e o r not. T h e information
w h i ch h e w o u l d cl o s e l y o b se r ve i s su m a s su r e d and
p r e m i u m p r o p o s e s m e d i c a l history, h i s habits, k i n d
of organization h e i s w o r ki n g e t c . I f t h e u n d e r w r i t e r i s not
sa t i s f i e d w i t h t h e a va i l a b l e i n f o r m a t i o n h e co u l d
demand

4 ) Cheque Dishonor:
I f due to insufficient funds or due to signature
m i s ta k e o r d u e t o d i f f e r e n c e between words and
f i g u r e s , i f t h e ch e q u e g i v e n b y t h e c u s t o m e r
bounces
t h e n o rg an i za tio n ca n not proceed w i t h i s s u e of policy.
T h e n i n t h a t ca s e a n e w ch e q u e n e e d s t o b e i s su e d by
customer along with certificate of insurability.
5 ) Dispatch:
When the underwriter is fully satisfied with the
customer, h e d e c i d e s th a t h e co u l d b e g i v e n insurance
cover. T h e n t h e p o l i c y d o cu m e n t s t a t i n g t h a t c l i e n t is
insured by Sun Life is se n t to th e clients mailing
address. T h i s i s t e r m e d a s dispatch.
6 ) Refund:
O n c e t h e cl i e n t r e c e i v e s t h e p o l i c y d o cu m e n t h e is
g i v e n 15 d a y s o f t i m e c a l l e d “ F r e e l o o k period” , during
w h i ch h e c o u l d g i ve a s e c o n d t h o u g h t fo r h i s decision
a n d i f h e t h i n k s th a t h e doesn’ t r e q u i r e t h e p o l i c y , he
could return ba ck the poli cy document . Then hi s entire
money that he ahs paid to the company would be
r e t u r n e d t o h i m . T h i s i s t e r m e d a s refund.

7 ) Client Services ID :
I f t h e c u s t o m e r doesn’ t r e tu r n t h e p o l i c y document
w i t h i n t h e f r e e l o o k period, t h e n i t m e a n s t h a t h e has
a c c e p te d t h e p o l i c y a n d t h e r e f o r e h i s l o g i n I D and
p a s s w o r d r e q u i r e d t o a c c e s s h i s p o l i c y d e t a i l s o n l i n e is
sent to his mailing address.
8 ) C o mmu n i ca t i o n Cel
l:
B i r l a S u n L i fe h a s a c a l l c e n t e r w h i c h t h e customer
can call anytime to get any information regarding his policy.
F u t u r e G r o w t h a n d P rospects :
T h e Bi r l a Su n L i fe C o m p a n y i s e x p a n d i n g i t s e l f all
o ve r I n d i a t h r o u g h i t s branches. I t s a l r e a d y p r e se n t
in
more than 1000 t o w n s in India. I t has a huge
recruitment plan to meet i ts grow ing demand for
manpower. Through the kind of business that the
co m p a n y h a s d o n e t i l l now, i t i s b e c o m i n g t h e f i
rst
i n s u r a n c e c o m p a n y i n I n d i a t o a ch i e ve b r e a k e v e n point.

Chapter 3
Operational Departments &
Performance Evaluation
Performance evolution of concerned departments
FUNDAMENTAL DEPARTMENTS OF THE

ORGANISATION:
ACTUARY:
A n e f f i c i e n t a n d su c c e s s f u l l i f e i n s u r a n ce business
i s d e p e n d e n t o n k e y f u n c t i o n s o f r i s k management.
Our team o f p r o fe s s i o n a l a c t u a r i e s i s a m o n g t h e b e s t i n
the
industry and is dedicated to create so u n d r
isk
assessment and pricing structure.
MARKETING AND COMMUNICATION:

I t s o b j e c t i ve i s to b r i n g t h e l a t e n t n e e d o f l i fe
i n su r a n c e i n t o t h e co n s c i o u s a w a r e n e s s o f t h e Indian
D i a s p o r a a n d b u i l d i n g a b r a n d t h a t p e o p l e o f I n d i a can
t r u s t a n d i n ve s t in.

UNDERWRITING:
The underwriting team performs the key function of
assessing the r isk on world class underwriting
standards. The team along with a nationwide panel of
Medical Evidence Providers acts as the backbone of the company.
CLIENT SERVICING:
I t services an existing base of over 1 lakh
policyholders w h i ch is constantly growing at a
compounding rate. The team is continuously evolving
efficiency levels n order to meet i ts committ ed
standards.
PRODUCT DEVELOPMENT:
A team dedicated to conceptualizing, product
features, s e t u p t h e i m p l e m e n t a t i o n a n d l e a d i t t o the
product launch with the active support of the other core functions.
HUMAN RESOURCE:
In an ever grow ing and expand ing company the key
r o l e o f r e cr u i t i n g a n d r e ta i n i n g t h e r i g h t t a l e n t and
efficient performance management system i s a crucial
differentiator between a leader and any other company.

I M P L E M E N T A T I O N A D M I NI S T R A T I O N & CONTROL:
B S L I i s t h e f i r s t c o m p a n y i n t h e i n s u r a n c e industry
t o i m p l e m e n t “ BC P – Bu si n e ss C o n t i n u i t y Plan” t o take
ca r e o f a n y d i s a s t e r w h i c h c a n s t r i ke t h e organi za tion .
U n d e r th i s plan, a l l th e cr i t i c a l b u s i n e s s d a t a i s mapped
off- s i t e t o a n o t h e r B i r l a S u n L i fe I n su r a n ce l o ca ti o n in
a n o th e r city. I n ca s e o f a n y disaster, t h e B S L I t e a m can
be up and running in less than 12 hours.
INFORMATION TECHNOLOGY:
BSLI boasts of the most advanced software
t e ch n o l o g y i n t h e L i f e I n su r a n c e industry. B e i n g a unit
l i n ke d product offering with
cu stomi zation, t
he
technology and back- end processing is done on the
u n i ve r sa l p l a t f o r m o n t h e w o r l d c l a s s i n g e n i o u s system.
W i t h t h i s technology, cu s t o m e r s c a n e v e n t r a c k their policy
a n d f u n d d e t a i l s o n t h e internet.
INVESTMENT:
T h e u n i t l i n ke d p r o d u c t s offer the f lexibility
of choosing f r o m va r i o u s i n v e s t m e n t options. A n efficient
i n v e s t m e n t s t r a te g y w i t h i n t h e f r a m e w o r k o f t h e IRDA
g u i d e l i n e s i s a cr u c i a l f a c t o r co n t r i b u t i n g t o t h e success
o f u n i t l i n ke d p r o d u c t s i n t h e m a r k e t place.

LEGAL AND COMPLIANCE:
Being a good corporate citizen and being complaint
i s a w o r k s t a n d a r d a t BSLI. T h e c o m p l i a n c e P r o ce ss is
embedded in the wor k f low across the company.
FINANCE AND PLANNING:

A team dedi cated to handle the day to day Finance
& A c c o u n t s o p e r a t i o n s o f BSLI, i n a d d i t i o n t o t h e crucial
f u n c t i o n o f M I S a n d s t r a t e g i c p l a n n i n g e n a b l e d b y the
t o p t h r e e p r i v a t e l i f e i n s u r a n ce c o m p a n i e s i n India.
Skill:
Off the job training:
I n I n s u r a n ce i n d u s t r y i t ’ s th e c u s t o m e r w h o is
su p r e m e a n d company’ s r e ve n u e w o u l d d i r e c t l y depend
o n i t . S o i t r e q u i r e s t h e D i r e c t S a l e s f o r ce o f the
co m p a n y t o h a v e g o o d c o m m u n i c a t i o n skills, s i n ce they
d i r e c t l y i n t e r a c t w i t h t h e customer. T o c a te r t o t h i s need
t h e o r g a n i z a t i o n p r o v i d e s f o r e x c l u si v e com munication
s k i l l i m p r o v e m e n t t r a i n i n g f r o m r e p u t e d o r g a n i z a t i o n s so
t h a t t h e i r D i r e c t S a l e s F o r ce w o u l d i n t e r a c t i n a
better way
with the cu s t o m e r s and emerge su c c e s s f u l in
g e t t i n g b u s i n e s s f r o m him.
BSLI would be harnessing the IT advantage for
improving the effectiveness and efficiency of i ts

d i s t r i b u t i o n channels. At the same t ime i t u se s IT
technology to meet the people. Thi s requires i ts direct
sale s force to be well versed in usage of computer and
M i c r o s o f t o f f i c e p r o d u c t s . H e n c e a co m p l e t e t raining
ca t e r i n g to the IT needs of Direct Sales force is
provided by the organization.
On the job
tr aining:
After completion of off the job t raining, the
a d v i so r s w o u l d a c co m p a n y a g e n c y m a n a g e r s f o r a few
m e e t i n g s w i t h th e customer, so th a t th e a d v i s o r could
understand the way he need s to put forth the product to
the customer. In the same way the new agency
managers woul d acco mpany the senior managers in
t h e i r c l i e n t m e e t i n g s t o k n o w h o w b e s t t h e y co u l d sell
t h e product.
Style:
Top down Participative Decision Making:
I n B i r l a S u n L i fe t h e d e c i si o n r e g a r d i n g products,
company policies etc. is taken by the top level
m a n a g e m e n t w h i ch w i l l h a v e t o b e f o l l o w e d b y t h e low
level management namely branch mangers, agency
managers and advisors in all the branches. The
d e c i si o n c o u l d b e t a ke n a t t h e s t a r t o f e v e r y f inancial

year and also whenever a crisis arises in any
department.
I n B i r l a S u n L i f e t h e to p l e ve l management, before
t a ki n g t h e d e ci s i o n w o u l d c o n d u c t a l o t o f meetings
i n vo l vi n g e m p l o ye e s f r o m a l l d e p a r t m e n t s w h i ch would
b e a f fe c t e d b y t h e decision. F r o m a l l t h e s e meetings
t h e y w o u l d g a t h e r a s m u c h i n fo r m a t i o n a s p o s si b l e and
l a t e r o n l y t o p l e v e l m a n a g e m e n t w o u l d co m e u p w i t h a
f i n a l decision.
Strategies:
Birla Sun Life has put in ca r e fu l l y designed

strategies to move to the leading position in the l i
fe
insurance industry through continuous product
innovation, cu s t o m e r focus, c u t t i n g e d g e t e ch n o l o g y and
pricing strategy.
A. P r o d u c t Inn ovation:
a ) N e w p r o d u c t t o b e launched: B i r l a S u n L i f e is
planning to Launch a product which as 100 % equity exposure.
b ) C u s to m i za t i o n of products: Birla Sun L i fe has
undertaken Customization of products to meet the varying
needs of diverse customers.

B. C u s t o m e r Focus:
a) Medical underwriting: I t comes under the basis of

sum assured, premium, age, habit, medical history
of the customer. Company may ask customers to go for medical
check up.
b) A u t o m a t i c p r e m i u m loan: B e f o r e t1
s July, 2006
automatic premium loan was there. But now
a c c o r d i n g t o n e w I R D A g u i d e l i n e s t h i s f e a t u r e has
been removed.
c) A n y t i m e premium: D u r i n g t h e f i r s t 3 ye a r s o f the
policy period the customer has to pay premiums regularly. But
after 3 years he could pay premiums for every 2 years to keep
the policy in force.
d) Web based services: Birla Sun Life has i ts own

w e b s i t e namely www. Bi r l a S u n Li fe. com which
c o n t a i n s a l l t h e i n f o r m a t i o n r eg ar d in g i t s insurance
products, t h e n o r m s i n th e i n su r a n c e industry, daily
u n i t va l u e s o f i t s v a r i o u s fu n d s etc. E v e r y customer is
p r o vi d e d w i t h a l o g i n i d a n d p a s s w o r d through
w h i c h h e co u l d g e t t o k n o w h i s p o l i c y s t a tu s any
t i m e a n y w h e r e i n t h e world.

e) Call center based services: Birla Sun Life has their
own call center known “ TRANS WORKS” which handles all
types of queries which could come f rom customer or office
administration. This call center
could be reached by dialing 1800227000 .
f ) F r e e l o o k period: Bi r l a S u n L i fe w a s t h e f i rst
c o m p a n y i n I n d i a t o i n tr o d u c e t h e co n ce p t o f f ree
l o o k p e r i o d i n w h i c h t h e cu s t o m e r u p o n receiving
t h e p o l i c y d o c u m e n t i s g i v e n t i m e o f 15 days,
d u r i n g w h i c h h e co u l d r e tu r n t h e p o l i c y t o B i r l a Sun
Life, i f h e ch a n g e s h i s m i n d . I n t h a t ca s e t h e entire
money what the customer had paid to company will
be paid ba ck to him.
g) Sales process safeguarding against wrong selling:

W h e n e ve r a n a d v i so r f r o m B i r l a S u n L i f e would
m e e t th e customer, h e i s e xp e c t e d to r e ve a l a l l the
information to the customer regarding the product,
i t s charges, m e d i c a l n o r m s etc. H e i s a l s o expected
t o s h o w th e p o l i c y i l l u s tr a t i o n t o th e customer Later,
the Agency Manager , would check up with
t h e c u s to m e r t o k n o w w h e th e r h i s a d vi s o r has
r e v e a l e d h i m a l l t h e d e t a i l s o r not. T h i s i s the
measure taken to prevent wrong selli ng from the
advisor.

C. T h e t e c h n o lo g y
edge :
a) All branches are computerized and l inked in a wide

area network
b) There is inter branch connectivity a well as

connectivity with the head office
c) B i r l a S u n Life would p r o vi d e Sales Il

lustration
S y s t e m s t o e ve r y d i s tr i b u t o r a n d i t ca n b e loaded
o n l a p to p s also.
d) BSLI would be harnessing the IT advantage for

i m p r o vi n g t h e e f f e c t i v e n e s s a n d e f f i c i e n c y o f i ts
d i s tr i b u t i o n channels.
D. Pricing strategy:
a) Birla Sun l i fe has introduced a new product

called “ Classic Life Premier” which has the least policy
charges among all i ts competitors and hence the return from
this product is very good.
b) B i r l a S u n l i f e p r o d u c t s h a v e t h e l e a s t
mortality
charges in the market.
c) Birla Sun l i fe has the least Fund Management
charges in the market.
S y st e m s i n BSLI:
I n ve n t o r y co n t r o l S y s t e m i n BSLI:
From the head quarters situated at Mumbai, to
every branch in India, inventory l ike product brochures, applications,
etc., are dispatched. At the local level a count of all these is
maintained to minimize wastage.
M e r it R a t i n g S y st e m in BSLI :
F o r e a c h i n d i vi d u a l i n t h e o r g a n i z a t i o n t h e r e i s a
par ti cular team in Human Re source Department which
monitors every individual performance on certain
parameters. Based on that the individual is promoted or
demoted.
U n d e r w r i t i n g S ys t e m in BSLI:
Introduction:
T o u n d e r w r i t e m e a n s to a s s e s s a n d a p p r o v e an
a p p l i c a t i o n f o r co v e r a g e t h u s a c ce p t i n g l i a b i l i t y should
a l o s s occur?
The f i rst stage of Underwriting begins with

class
selection, w h i c h m e a n s t h e i n su r a n c e c o m p a n y decides
t o w h o m i t i s p r e p a r e d t o se l l i t s p r o d u c t s o r h o w i

sells. For example the company may decide that i t
w o u l d ca n v a s s b u s i n e s s f r o m h i g h n e t w o r t h individuals
o r e m p l o y e e s o f co r p o r a t e bodies. T h e se c o n d s t a g e is
when th e agent a p p r o a ch e s a potential client and
co m p l e t e s the a p p l i ca t i o n for co v e r a g e w h i ch would
i n c l u d e p e r s o n a l d e ta i l s o f t h e p r o p o s e d client, p l a n and
a m o u n t a p p l i e d for; d e t a i l s o f occupation, avocation,
i n c o m e bene fi ciar y, p l u s m e d i c a l i n fo r m a t i o n s u c h as
b u i l d f a m i l y h i s t o r y a n d m e d i c a l history. T h e t h i r d stage i s
when the i n su r a n ce company actually r e c e i ve s the
application forms. The co m p a n y may o b ta i n detailed
i n f o r m a t i o n a b o u t t h e l i f e t o b e insured, h i s age, family
h i s t o r y o f i l l n e s s t o f i n d a n y h e r e d i ta r y disorders,
p e r so n a l h e a l t h h i s t o r y a n d f inancial information to
ch e c k t h e a p p r o p r i a t e n e s s o f th e c h o s e n l i f e cover
amount and other benefit cover sought.
B a se d o n t h e in forma tion , t h e i n s u r a n c e c o m p a n y may

take the following decisions –
1 . A cc e p t t h e p ro p o s a l a t t h e company’ s
published
r a t e s f o r t h e p la n a n d t e r m OR
2 . A cc e p t o n mo d i f i e d te r m s s u b je c t t o additional
financial or more detailed medical examination OR

3 . P o st p o n e t h e consideration of the insurance
proposal OR
4 . D e c l i n e t h e case.
Staff in BSLI:
ACTUARY:
A n e f f i c i e n t a n d su c c e s s f u l l i f e i n s u r a n ce business
is dependent on ke y functions of r i sk management.
O u t te a m o f p r o f e s si o n a l a c t u a r i e s i s a m o n g the
b e s t i n t h e i n d u s t r y a n d i s d e d i ca t e d t o c r e a t e sound
r i s k a s s e s s m e n t a n d p r i c i n g structure.
UNDERWRITING:
The underwriting team performs the key function of
assessing the r isk on world class underwriting
standards. The team along with a nationwide panel of
Medical Evidence Providers acts as the backbone of the company.
CLIENT SERVICING:
I t se r v i ce s an existing base of o ve r 10 lakh
policyholders which is constantly growing at a

compounding rate.
PRODUCT DEVELOPMENT:
A team dedicated to conceptualizing, product
features, s e t u p t h e i m p l e m e n t a t i o n a n d l e a d i t t o the

product laun ch with the active suppor t o f the other core
functions.
HUMAN RESOURCE:
In an ever grow ing and expand ing company the key
r o l e o f r e cr u i t i n g a n d r e ta i n i n g t h e r i g h t t a l e n t and
efficient performance management system i s a crucial
differentiator between a leader and any other company.
I M P L E M E N T A T I O N A D M I NI S T R A T I O N & CONTROL:
BSLI is the f i rst company in the insurance industry to
implement “ BCP – Business Continuity Plan” to take care of any
disaster which can strike the organization. Under this plan, all the
critical business data is mapped off- site to another Birla Sun Life
Insurance location in another city. In case of any disaster, the BSLI
team can be up and running in less than 12 hours.
INFORMATION TECHNOLOGY:
BSLI boasts of the most advanced software

t e ch n o l o g y i n t h e L i f e I n su r a n c e industry. B e i n g a unit
l i n k e d p r o d u c t o f f e r i n g w i t h customization,
t h e t e ch n o l o g y a n d back- e n d p r o c e s si n g i s done
o n t h e u n i ve r s a l p l a t f o r m o n t h e w o r l d c l a s s ingenious
system. W i t h t h i s technology, cu s t o m e r s c a n e v e n t rack
their policy and fund details on the internet.

INVESTMENT:
The unit l inked products offer the f lexibility of
ch o o si n g f r o m va r i o u s i n v e s tm e n t options. A n efficient
i n v e s t m e n t s t r a te g y w i t h i n t h e f r a m e w o r k o f th e IRDA
g u i d e l i n e s i s a cr u c i a l f a c t o r co n t r i b u t i n g t o t h e success
o f u n i t l i n ke d p r o d u c t s i n t h e m a r k e t place.
LEGAL AND COMPLIANCE:
B e i n g a g o o d co r p o r a t e c i t i z e n a n d b e i n g complaint
i s a w o r k s t a n d a r d a t BSLI. T h e c o m p l i a n c e P r o ce ss is
embedded in the wor k f low across the company.
FINANCE AND PLANNING:
A team dedi cated to handle the day to day Finance
& A c c o u n t s o p e r a t i o n s o f BSLI, i n a d d i t i o n t o t h e crucial
f u n c t i o n o f M I S a n d s t r a t e g i c p l a n n i n g t o e n a b l e BS L I in
t h e t o p 3 p r i v a t e l i f e i n s u r a n ce i n India.
Shared Value:
B i r l a Su n L i f e I n s u r a n c e w a s t h e f i r s t p r i va t e l i fe
i n s u r e r i n I n d i a t o i n t r o d u c e Unit- L i n ke d l i f e insurance
plans. A Unit- L i n k e d p l a n i s a n a u s p i c i o u s coming
together of se curi ty from l i fe in surance and earnings
from investments. Wh ich means, apart from securing
one’ s future, i t o f fe r s e f f i c i e n t returns.

4) Swot Analysis:
Strengths:
1) ) B i r l a S u n L i f e I n s u r a n ce i s t h e o n l y c o m p a n y t o give
3 % guarantee on investments in ULIPS.
2) ) T h e l a r g e p r o d u c t l i n e o f B S L I catering to the
needs o f c u s t o m e r s o f d i f f e r e n t a g e a n d r i s k a p p e t i t e
h a s been strength of BSLI For example,
a) People who are looking for more returns can invest
m a x i m u m p e r c e n t a g e i n equities.
b ) P e o p l e w h o a r e l o o k i n g f o r s a fe r e t u r n s c a n invest
into govt. securities and nominal percentage of
equities.
c) A s B S L I i n v e s t t h e i r f u n d i n d i ve r s i f i e d p o r t f o l i o so
t h e r i s k i s low.
3 ) Birla Sun Life is the only company to give ULIP

policy for term of 100 years.
4 ) B i r l a Sun L i f e Insuran ce i s t h e o n l y o n e com pany in

I N D I A t o a s k C R IS IL t o r a te i t s funds.

5 ) The name “ BIRLA” is a house hold name in India and
h e n ce p e o p l e h a v e t r u s t o ve r here.
6 ) BSLI would be harnessing the I T a d v a n t a g e for

improving the Effectiveness and efficiency i of
ts
d i s t r i b u t i o n channels. A l l b r a n ch e s a r e computerized
and l inked in a wide area network.
T h e r e i s i n t e r b r a n c h co n n e c t i v i t y a w e l l a s con necti vity
w i t h t h e h e a d office. T h i s g i ve s t h e c o m p a n y a n added
a d v a n t a g e t o s e r vi c e i t s l a r g e c u s t o m e r base.
Weaknesses:
1 ) I n t h i s i n d u s t r y cu s t o m e r i s s u p r e m e a n d revenues a r e
d i r e c t l y d e p e n d e n t o n t h e n u m b e r o f cu s t o m e r s BSLI c a n
get insured. This requires BSLI to have very
e f fe c t i v e a d v e r t i si n g s t r a t e g y so a s to p o p u l a r i ze their products
among the masses. BS L I is found lacking in
t h i s d o m a i n w h e r e e v e n t h o u g h t h e i r p o l i c i e s a r e as
p o w e r f u l a s a n y o th e r compe ti tor s, t h e i r advertising
s t r a t e g y i s n o t a t a l l effective.
2) The company should extend their services to

corporate employees where i t is found to be lacking.
3 ) B i r l a S u n L i f e doesn’ t h a v e a fu n d t h a t i n v e s t s 100
p e r ce n t i n to equities. S o a c u s t o m e r w h o w o u l d l i ke to

take maximum advantage of equities would f ind i t hard
to invest here.
Opportunities:
1 ) Only 7 % o f Indian population i s insured t i l l now. This

m e a n s t h a t t h e r e i s a g r e a t o p p o r t u n i t y f o r t h e company
in coming years to capture the market.
2 ) The grow ing IT se ctor of INDIA woul d provide for an

excellent opportunity for BSLI to increase i ts sales
3 ) T h e g r o w i n g kn o w l e d g e a b o u t U L I P S a m o n g people
would only mean that BSLI has grater opportunities to grow in coming
years.
Threats:
1) ) Directly the co m p a n y shall h a ve to face the
onslaught of LIC. The large customer base,
accumulated funds, well- e stab l i sh e d m a r ke t i n g
m a c h i n e r y etc.
2) ) T h i s is just half of the story; there would be
the r e c e n t l y “ o f f – the- b l o c k insurers” w h o w o u l d b e
coming o u t w i t h a v a r i e t y o f p r o d u c t variations. Many
o f them w i t h p a r a l l e l f i n a n c i a l a c t i vi t i e s a n d s i m i l a r
products. J u s t t o name few: ICICI – Prudential,
HDFC- Standard
T h e se n e w e r c o m p e t i t o r s a r e l i ke l y t o b e aggressive
a n d innovative. T h i s d i r e c t compe ti tion , o n t h e f l i p side,
co u l d r e su l t i n m a r ke t expansion. T h e C o m p a n y shall
a l s o b e f a ci n g c o m p e t i t i o n i s m o r e damaging. Indirect
competition show s up in terms of other f inancial
i n s t r u m e n t s l i ke B a n k FSs, PPF, NSCs, ULIP, Stocks
land other similar savings instruments

Learning Experience:
The in plant t raining gave me an opportunity to
kn o w a b o u t m o n e y sa vi n g i n s t r u m e n t s i n INDIA,
e s p e ci a l l y I N S U R A N C E INDUSTRY. I c o u l d l e a r n about
formation of LIC, i ts hold on Indian market t i l l year 2000
. I came to know abou t the formation of IRDA and
su b s e q u e n t l y t h e a d v e n t o f p r i va t e p l a y e r s i n t o I n d i a in
2001 . I n p a r t i c u l a r I c a m e t o k n o w m u ch a b o u t S u n Life
F i n a n c i a l Inc., i t ’ s o p e r a ti o n s a r o u n d th e w o r l d etc. I
co u l d a l so l e a r n m u c h a b o u t B i r l a Group, t h e various
f ield s into which they have entered and become market
l e a d e r s i n t h o se f i e l d s etc. I n pa r ti cu la r I could develop a
ve r y g o o d u n d e r s t a n d i n g o f B i r l a S u n L i f e Insurance, i
ts emergence in Indian market and also came to know t h a t
i t w a s t h e f i r s t c o m p a n y to i n t r o d u ce U L I P S into Indian
market. I cou ld have a thorough understanding of how
ULIPS operate and how they give better returns
t h a n t r a d i t i o n a l p o l i ci e s b y t a k i n g t h e a d v a n t a g e of share
market. I c o u l d g a th e r a l o t o f i n f o r m a t i o n about
t h e v a r i o u s p r o d u c t s o f f e r e d b y B i r l a S u n L i f e t o i ts
customers, t h e f e a t u r e s o f t h o s e products. I c a m e to
kn o w t h a t m a n y o f t h e fe a t u r e s i n tr o d u c e d b y B i r l a Sun
L i f e t o i t s p r o d u c t s l ike:

Chapter 4
Achievements:
1) Best Private Sector Life Insurer-

outlook
money awards
2 ) A m o n g T o p s 5 C o n te n d e r s f o r L i f e Insurance
Company of the year’ of 8 Asia Insurance
Industry awards
r d
3) ) R a n k e d 23 in th e b e s t employer’ s su r ve y
by H e w i t t A s so c i a t e s a m on g t o p 25 b e s t p la c e s
n d
to w o r k f o r 2 year.
4) ) A m o n g t o p 3 C o n t e n d e r s f o r ` S t r a t e g y to
Execution’ o f t h e 5
h
t A d i t y a B i r l a Awards for
o u t s t a n d in g a ch ievement s, 2006
.

Micro s c o p i c S t u d y
Of
Hum a n R e so urc e
D epartment

HUMAN RESOURCE
Human Re source Department has multiple goals. These
i n c l u d e e m p l o y e e c o m p e t e n c y a n d e m p l o y e e motivation
and organizational climate developmen t. Employees
r e q u i r e a v a r i e t y o f c o m p e te n c i e s to p e r fo r m different
tasks or functions requir ed by their jobs. The nature of
jobs i s constantly cha nging due to cha nges in the
environ ment, c h a n g e s i n o r g a n i za t i o n a l priorities, goals
ands strategies, ch a n g e s in the profiles of fellow
employees, ch a n g e s i n technology, n e w opportunities,
new challenges, new knowledge base etc., such
ch a n g e s in the nature of jobs require continuous
d e v e l o p m e n t o f e m p l o y e e c o m p e te n c i e s t o p e r fo r m the
job well.
H u m a n R e s o u r ce s D e p a r t m e n t a l s o a i m s a t preparing
p e o p l e f o r p e r f o r m i n g roles, jobs, tasks, f u n c t i o n s which
t h e y m a y b e r e q u i r e d t o p e r f o r m i n t h e f u tu r e a s t h e y go
u p o n th e o r g a n i z a t i o n h i e r a r ch y o r a s t h e organization
t a ke s u p n e w t a s k s t h r o u g h di versifica tion , expansion,
modernization, e co n om i za tio n etc.
H u m a n R e so u r c e D e p a r t m e n t t r i e s t o d e v e l o p
potential
of employees for future l ikely jobs in the organization.

The s u c ce s s of any organization in the long run
depends very much on the quality of i t s human
resources. Human Resour ces comprise the aggregate of
employee attributes i n cl u d i n g knowledge, skill,
experience and health, which are presently and
potentially available to an organization for the
achievement of i ts goal. Of all the prime resources of an
organization, men, materials, m o n e y a n d m a ch i n e the
human resour ces is recogn ized as the most vital and
t h e m o s t v a l u a b l e . F o r i t i s t h e q u a l i t y o f m a n p o w e r that
u l t i m a t e l y d e te r m i n e s t h e s u c ce s s o f a n organization.
HRD provides the platform for sup erior performance in
o r g a n i z a t i o n s i n c e th e su c c e s s o f o r g a n i z a t i o n depends
u p o n i t s e m p l o ye e s a n d i t s r e l a t i o n w i t h i t s i n te r n a l and
e x t e r n a l customers, S o H R D m u s t ke e p a l l s u ch factors
insight before formulating any strategy.
Human Resource Department is one of the core
d e p a r t m e n t s o f a n o r g a n i z a t i o n a n d i t a l so p l a y s a vital
role in the development of the organization ICICI
P r u d e n t i a l co n s i d e r s i t s h u m a n r e so u r c e a s t h e most
va l u a b l e a s s e t o f i t s organization.
Human resource policies:

P o l i c y i s a c o u r s e o f a c t i o n o r s t a t e m e n t o f intention
co m m i t t i n g t h e m a n a g e m e n t t o g e n e r a l c o u r se o f action
when the management drafts a p o l i c y s t a t e m e n t to

cover some features of i ts persona l programme’ s of
the
statement may often contain an expression of
philosophy and principle as
W e l l I C I C I h a s s e v e r a l p o l i c i e s r e g a r d i n g t h e fulfillment
of goals set by the management such as:
1 ) Recruitment policies:
The recruitment is carried out f rom internal are: both external &
1. . Present
employees 2 .
E m p l o ye e referrals 3 .
Former employees.
E x t e r n a l Sources:
The following external sources are: 1 .
Campus recruitment
2. . P r i n t media
3. . E l e c tr o n i c media
2 ) Selection
Selection is carried out in three major stages: 1 .
Preliminary interview
2. . S e l e c t i o n test
3. . H R Interview

3 ) REMUNERATION AND INCENTIVES
The organization o f fe r s a t t r a c t i ve remuneration and
i n c e n t i v e s t o a t t r a c t t h e b u d d i n g y o u n g s t e r s a n d to
m a i n t a i n i t s p r e se n t employees.
4 ) SALARY
Attractive salaries and other extra incentives based on their
performance.
5 ) Reimbursement policy
R e i m b u r s i n g t h e t e l e p h o n e a n d , e l e c t r i c i t y b i l l s etc.
6 ) Leave policy
Gi vi n g l e a v e s i n ce r t a i n o c ca s i o n s a n d e ve n t o u r offers
t o e m p l o y e e s t o f o s t e r i n t e r e s t i n t h e m fo r organization.
OTHER HUMAN RESOURCE POLICIES

G o a l setting M e d i
c l a i m policy
Company accommodation policy
Mobile Phone policy
Credit card policy
Travel policy

Human Resource Planning
H u m a n R e s o u r c e P l a n n i n g i n c l u d e s t h e e s t i m a t i o n of how
m a n y q u a l i f i e d p e o p l e t o c a r r y o u t th e assigned
task, how many people will be available, and wha t if
anything , m u s t b e d o n e t o e n su r e t h a t p e r s o n n e l supply
e q u a l s p e r so n n e l d e m a n d a t t h e a p p r o p r i a t e p o i n t in
future. S p e c i f i ca l l y H u m a n R e so u r c e P l a n n i n g i s the
p r o ce s s b y w h i c h a n o r g a n i z a t i o n e n s u r e s t h a t i t has t h e
r i g h t no. a n d k i n d o f people, a t t h e r i g h t place, at t h e
r ight t ime, ca p a b l e o f e f fe c ti ve l y a n d efficiently
co m p l e t i n g t h o se ta s k s th a t w i l l h e l p th e o r g a n i za ti o n to
a ch i e ve i ts overall objectives. Human Resource
P l a n n i n g t r a n s l a t e s t h e o r g a n i za t i o n a l o b j e c t i ve s and
plans into the number of workers
N e e d e d t o m e e t t h o s e o b j e c t i ve s . W i t h o u t a clear-
cut
planning and estimation of organization’ s human
resour ce need is reduced to more guesswork
Recruitment process
Right people at the r ight place at the r ight t ime plays a
major role in the recruitment process in any
organization. B e c a u s e o f e x t r e m e co m p e t i t i o n i n today’ s
world, o r g a n i z a t i o n s n e e d t o h a v e a ve r y e f f i c i e n t and
e f fe c t i v e r e c r u i t m e n t process, w h i c h s a ve s t i m e a n d in
t u r n r e s u l t s i n r e d u c i n g t h e co s t o f r e c r u i t m e n t process.

Many Internal and External Factors govern the
recruitment process.
F i v e s t a g e s o f re c r u i t m e n t process : are
1 Planning
2 S t r a te g y Developments
3 Searching
4 Screening
5 E v a l u a t i o n s a n d Control
M e t h o d s o f r e c r u i t m e n t p r o ce s s l i ke W e b recruitment,
A p p l i ca n t T r a c ki n g s y s t e m a n d O u t s o u r c i n g c a n b e used
t o cu t d o w n t h e c o s t a n d t i m e involved.
According to the review of l i terature successful
recruiting involves three steps:
1 D e f i n i n g t h e needs
2 Sp r e a d i n g t h e word
3 Using the Internet.
I t i s p o s s i b l e t o i m p r o v e t h e cu r r e n t s t a t u s o f the
r e c r u i t m e n t c y c l e t i m e by
1. . C o n d u c t i n g a l l t h e i n te r v i e w r o u n d s i n t w o o r
three rounds
2. . M a k i n g c a n d i d a t e s t o j o i n early.
3. . Improving the various steps in the
process. 4 . r e m o vi n g t h e non- v a l u e a d d i n g
activities.

Type of recruitment:
H o w t o l o o k H o w t o l o o k r e f e r s t o t h e m e th o d s
or sources o f recrui tmen t. T h e se are se v e r a l sources
and t h e y m a y b e b r o a d l y c a t e g o r i z e d into
1) ) Interna l
2) ) Extern al
Internal recruitment
I n te r n a l r e c r u i t m e n t seeks, a p p l i ca n t s f o r t h e positions
t h o s e w h o a r e c u r r e n t l y employed. I n t e r n a l sources
i n c l u d e p r e se n t employees, e m p l o y e e referrals,
former employees and former applicants .
There are three major advantages of internal
recruitment.
1 Firstly, i t is less costly that external recruitment.
2 Secondly, organizations t y p i ca l l y have a better
knowledge of the internal candidate’ s . skills and
abilities than the ones acquired through external
recruiting.
3 Thirdly, an o r g a n i z a t i o n p o l i c y o f p r o m o t i n g f rom
w i t h i n ca n e n h a n c e employee’ s morale, organizational
commitment and job satisfaction. Good performance is rewarded
T h e r e a r e f e w d i sa d va n ta g e s o f i n t e r n a l recruitment.

1 One theory is that the method simply perpetuates the
old concept of doing things that cr e a t i ve problem
so l v i n g m a y b e h i n d e r e d b y t h e l a c k o f n e w talents.
2 Some organizations complain of unit raiding in which divisions
compete for the same people.
3 Thirdly, politics probably has a greater impact on internal recruiting
and selection than does external recruiting.
4 Candidate’ s current work may be affected.
External recruitment
External sources far outnumber the internal methods. Specifically
sources external to an organization are
professional or t rade associations, ads, employment

exchanges, college/ university/ i n s t i t u t e placement
services, walk ins and write ins, con sul tan ts,
contractor s, d i s p l a c e d persons, r a d i o a n d television,
acquisitions and mergers and competitors.
There are three advantages of external recruitment:

1 Benefits of new skills and new talents and new experiences to
organizations
2 Compliance with reservation policy becomes easy
3 Scope for resentment, jealousies and heart bum are avoided
There are few disadvantages also of external

recruitment as:

4 Better morale and motivation associated with internal
recruiting is denied to the organization 5 I t is
costly
6 C h a n ce s of cr e e p i n g in f a l se p o s i t i ve and false
n e g a t i v e errors. A d j u s tm e n t o f n e w e m p l o y e e s t o the
or ga ni za ti on a l cu l t u r e t a k e s l o n g e r t ime.
Orientation
O r i e n ta t i o n i s a l s o c a l l e d induction, i s d e s i g n e d to
p r o vi d e a n e w e m p l o ye e w i t h t h e i n f o r m a t i o n h e o r she
n e e d s t o f u n c t i o n co m f o r t a b l y a n d e f f i ci e n t l y i n the
organization .
Purpose of orientation
O r g a n i z a t i o n s a r e o f t e n kn o w n t o s p e n d f e w w e e k s or even
months on orientation programme the idea is to
make the employee feel at home. In the new
e n v i r o n m e n t i t i s w e l l kn o w n f a c t t h a t e m p l o y e e s feel
a n x i o u s o n e n t e r i n g i n organization, i n d u c t i o n i s a
method to redu ce this anxiety.
Training and development

I t will be company’ s endeavor to recognize the value of i ts human
resources for their growth. The company is
co m m i t t e d to p r o vi d e adequate opportunity to
e m p l o ye e s to n e i g h t h e i r kn o w l e d g e s k i l l s attitudes,
co n t r i b u t i n g to steady growth of the company and

f e e l i n g p r o u d o f w o r k i n g f o r t h e company. Methodically
identifying needs for employees to upgrade their
kn o w l e d g e sharpen skills and i m p r o ve a t t i tu d e for
improving performance at their present and future
function.
I m p a r t i n g su c h t r a i n i n g t o e m p l o ye e s a f t e r assessing
their capabilities and potentials, various types of
t r a i n i n g t e c h n i q u e s a r e employed
F E ED BA C K i s o n e s i g n i f i c a n t m e th o d fo r evaluation.
Training may be undertaken on the basis of career

d e v e l o p m e n t plans. T r a i n i n g c a n b e p a r t o f Q u a l i t y of
Wor k Life programmers and organization Development.
Training can be used as a reward.
I n p u t s i n t r a i n i n g a n d d e ve l o p m e n t are
1 Skill
2 Educations
3 Developments
4 Business Ethics 5
Attitude change
6 Enhancement of decision- m a k i n g and problem -
solving skills.
M e th o d s o f t raining:
1 . Lecture
2 . Audio- visuals
3 .  On- the- j o b t

4 .  P r o g r a m m e d instruction
5 .  C o m p u t e r a s s i s t e d i n s t r u c t i o n simulation
6 .  C a s e study
7 .  R o l e playing
8 .  V e s t i b u l e t raining
9 .  S e n s i t i ve t raining, etc.
Human Resource Development:

H u m a n R e s o u r c e D e ve l o p m e n t i s s a i d t o b e t h e co r e of a
larger system known as Human Resour ce System
( HRS), wherein Human Resour ce Development i s mainly
co n c e r n e d w i th p r o vi d i n g l e a r n i n g e x p e r i e n ce fo r the
people associated with an organization through a
behavioral approach adopting various processes. In a
broader sense, the term Human Re source Development
m e a n s t h o se l e a r n i n g experie nce s, w h i ch a r e organized
for a specific t ime and designed to bring about the
p o s s i b i l i t y o f f b e h a vi o r a l change.
H u m a n R e s o u r c e D e v e lo p m e n t g o a ls include
1 )  D e v e l o p t h e i n d i v i d u a l t o r e a l i z e h i s p o te n t i a l a s an
i n d i v i d u a l t o th e m a x i m u m extent;
2 )  D e v e l o p t h e individual’ s c a p a b i l i t i e s t o p e r fo r m
his
present job better;
3 )  D e v e l o p t h e ca p a b i l i t i e s t o h a n d l e f u t u r e l i ke l y

4 )  D e v e l o p a n d m a i n t a i n a h i g h m o ti va ti o n l e ve l o f
the employees; strengthen superior. Subordinate
relationships;
5 )  S t r e n g t h e n te a m sp i r i t a m o n g d i f f e r e n t teams;
6 )  P r om o t e i n t e r team collaboration: and promote
climate development and organizational health
development.
7 ) Human resource management views people as an
i m p o r t a n t so u r ce o r a s se t t o b e u s e d f o r t h e benefit
of organizations, employees and society. It is
e m e r g i n g a s a d i s t i n c t p h i l o so p h y o f management
aiming a t p o l i c i e s t h a t p r o m o te mutuality, mutual
goals, m u tu a l respect, m u tu a l r e w a r d s a n d mutual
responsi bili ty. T h e b e l i e f i s t h a t p o l i c i e s o f mutuality
w i l l e l i c i t commitment, w h i ch i n t u r n w i l l y i e l d both
better economic performance and greater human
resource development. Though a distinct philosophy,
human resour ce management cannot be treated is
isolation. I t is being i n te g r a t e d into the overall
s t r a t e g i c m a n a g e m e n t o f business.
H R D Instruments, P r o ce s s e s a n d Outcomes
There are many i n s tr u m e n t s that ca n be used to

facilitate Human Resource Development. These
i n s t r u m e n t s m a y b e ca l l e d sub- s y s t e m s o r m e th o d s or

t e ch n i q u e s or aids. E a ch i n s tr u m e n t or sub- system
focuses on some aspects of human Resource
Development. To have a comprehensive HRD many of
these instruments may needed to be used
simul tane ousl y. H u m a n R e s o u r ce D e v e l o p m e n t i n the
o r g a n i z a t i o n c o n t e x t r e fe r s t o t h e p r o c e s s w h e r e b y the
employees are con ti nuously helped in a planned way to:
Acquire or sh a r p e n capabilities required to perform
various tasks and functions associated with their
present or future expected roles;
Develo their general enabling capabilities as
p
individuals so that they are able to discover and exploit
their own inner potential for their own and or
organizational development purposes;
 D e v e l o p a n o r g a n i z a t i o n a l cu l tu r e w h e r e superior.
S u b o r d i n a t e r e l a t i o n sh i p s t e a m w o r k a n d co llabora tion
a m o n g d i f f e r e n t sub- u n i t s a r e s t r o n g a n d co n t r i b u te to
t h e p r o fe s s i o n a l w e l l being, m o ti v a t i o n and pride
of employees.
H u m a n R e s o u rc e s I n f o r ma t io n System
Human resources information or Management
Information systems ( MIS) helps in determining
organization’ s major human resources needs strategies
and philosophies.

The instruments of Human Re source s Development are
many. Human Re source Development instruments
should lead to the generation of Human Resource
Development proce sse s l ike role clarity, performance
planning, a n d d e ve l o p m e n t climate, r isk- t a k i n g and
d y n a m i sm in employees. Su ch a H u m a n Resource
D e v e l o p m e n t p r o c e s s s h o u l d r e s u l t i n m o r e competent
satisfied and committed people who, by their
contribu tion s, w o u l d m a k e th e o r g a n i z a t i o n grow. A
model exp lainin g the l in kages between Human Resource
development instruments, processes outcomes and
or ga ni za ti on a l e f fe c t i v e n e s s i s presented.
HR PRINCIPLES
T h e o r g a n i z a t i o n b e l i e v e s t h a t d e ve l o p m e n t o f employee
i s i n i t s o w n interest. T h e o r g a n i za t i o n w i l l provide
opportunities and conditions for the development and
optimization of human resources.
1. . T h e m a n a g e m e n t i s willing to invest adequate t
ime and resour ces for the development of the
employees and personally participate in the
develop ment.
2. . Manager s have concer n for grow th of subordinates.
3. . Employees are willing to a va i l of given
opportunities for growth and receive such help from the
managers as may be necessar y for this development and
improving
The main objective of the HRD department is to create a
l e a r n i n g e n v i r o n m e n t a n d d e ve l o p m e n t c l i m a te i n the
organization. By learning environment is meant a
cu l t u r e w h e r e e m p l o ye e s c o n t i n u o u s l y l e a r n f r o m their
o w n e xp e r i e n c e a n d t h e va r i o u s l e a r n i n g oppor tuni tie s
t h e o r g a n i za t i o n provides. T h e H R D d e p a r t m e n t should
crea te an . enabling Culture ca lled Appolo Cul ture where
t h e e m p l o ye e s a r e a b l e t o m a k e t h i n g s h a p p e n a n d in
t h e p r o c e s s d i sco ve r a n d u t i l i z e t h e i r potential.
The most f requently used instruments are the following:
Performance Appraisal
Performance Appraisal data forms basi s for decisions
f o r d e ve l o p i n g t h e p o t e n t i a l e m p l o y e e fo r higher. Level
jobs and is basis for feedback and counseling. Performance
Appraisal data indicates the job t raining needs of each individual
the main appraisal method used by Birla Sun Life is 360 degree
T h e r e a r e t w o m a j o r w a y s o f p e r f o r m a n c e appraisal
1 ) Past- o r i e n t e d methods
2 ) Future- orient ed methods
Each group has several techniques. Some of them are
e x p l a i n e d i n th e f o l l o w i n g Section.
The term use d to describe a performance rating that
f o c u se s o n sp e c i f i c b e h a v i o r s o r se t s a s i n d i ca to r s of
e f fe c t i v e o r i n e f f e c t i ve perfor mance , r a th e r t h a n on

broadly s t a te d a d j e ct i ve s s u ch as " average, above
average, or below average". Other variations are:
1 ) B e h a v i o r a l o b se r va t i o n scales
2) ) B e h a v i o r a l e x p e c t a t i o n s scales
3) ) N u m e r i ca l l y a n c h o r e d r a ti n g scales
S y st e m o f appraisa l
In 360 degree system of appraisal, rating is done by the

employee’ s i m m e d i a t e supervisor, h i s o r h e r immediate
su b o r d i n a te s etc., A r t h u r A n d e r s o n su r ve y r e ve a l s that
20 % o f t h e o r g a n i z a t i o n s u s e th e 360 d e g r e e s y s t e m to
a s s e s s t h e talents, b e h a vi o r a l aspects, values, ethical
standards, temper, l o y a l t y b y t h e p e o p l e w h o a r e the b e s t
p l a ce d t o d o i t .
Employee benefits:
Employee benefits and services include any benefits
that an employee receives in addition to direc
t
remuneration. Employee benefits embrace a
broad
r a n g e o f b e n e f i t s a n d se r v i ce s t h a t e m p l o y e e s receive
a s a p a r t o f t h e i r l o ca l co m p e n sa t i o n package. Pa y and
d i r e c t l y com p en sa tio n s i t i s b a s e d o n c r i t i ca l j o b factors
a n d per forman ce. B e n e f i t s a n d services, however, are
indirect compensation because they are usually
intended as a condition of employment and o r not

d i r e c t l y r e l a t e d t o perfor mance s. F e w b e n e f i t s a r e as
follows:
1) ) Leal ly requir ed payments as un employment payment
a n d worker’ s compensation
2) ) C o n t i n e n t a n d d e fe r r e d b e n e f i t s a s p e n s i o n plans,
g r o u p l i f e insurance, p r e p a i d l e g a l plans, a n d military
l e a v e a n d pay.
.
P o te n t ia l A p p r ai sa l D e ve l o p me n t ( PAD)
P o t e n t i a l A p p r a i s a l D e v e l o p m e n t i s b a s e d o n career plans
and career plan s are prepared by using Potential
A p p r a i s a l D e v e l o p m e n t data.
Training may be provided to develop candidates with potential.
F e e d b a c k P e r f o r m a n c e C o a c h i n g ( FPC)
Feedback and Performance Data can be used to
monitor individual d e v e l o p m e n t a n d t h e d a t a c a n b e u s e d for
identifying t raining. Career counseling and verbal

rewards can be part of feedback.
C a r e e r P l a n n i n g ( CP)
C a r e e r P l a n n i n g d a t a a r e u se d f o r h u m a n resources
a u d i t s a n d ca r e e r p l a n n i n g a n d h e l p i n conducting
research on promotion patterns for Organization
Development programmers.

Employee Welfare and Quality of Work Life
G r o u p e f f o r t s c a n b e r e w a r d e d t h r o u g h q u a l i t y o f work
l i f e measurers. Q u a l i t y o f w o r k l i f e i m p r o v e m e n t s ca n
be p a r t o f o r g a n i z a t i o n D e ve l op me n t activities.
Rewards
P e r f o r m a n ce D a t a i s u s e d f o r r e w a r d s a n d r e w a r d data
are entered for development
Grievance
Grievance procedure is one of the techniques of
r e so l vi n g disputes. A l l l a b o r a g r e e m e n t s co n t a i n some
form of grievance procedure. And i f people follow i t
s t r i c t l y a n y d i s p u te c a n b e r e s o l v e d ve r y easily. Terms
w h i ch g i v e r i se t o g r i e va n c e s is:
1) ) V i o l a t i o n o f law
2) ) V i o l a t i o n o f c o m p a n y rules
3) ) V i o l a t i o n o f h e a l t h a n d s a fe t y measures
4) ) A c h a n g e in w o r ki n g co n d i t i o n or past company
practices
5) ) V i o l a t i o n o f t h e i n te n t o f t h e p a r t i e s a s stipulated
d u r i n g c o n t r a c t negotiations.
T h e r e a r e f e w o th e r t e ch n i q u e s a v a i l a b l e a s collective
bargaining and code of discipline.

C h a l l e n g e s f a ce d b y H u m a n Resou rce
I n a n d o r g a n i za t i o n l i ke B i r l a S u n Life; i t i s a ve r y big
ch a l l e n g e t o h a n d l e a l l t h e H R r e l a t e d issues. H e r e the
role of a HR manger and hi s persona l insight to tackle
s i tu a t i o n c o m e s i n t o picture. T h e r e a r e f e w challenges
f a ce d b y t h e H R m a n g e r i n B i r l a S u n Life
1 ) D ep ar tm en t o u t s o u r c i n g H R activities
2 ) B P O a n d ca l l centers
3 ) T o b a l a n ce w o r k e r s work- l i
fe 4 ) T o m a k e H R a c t i v i t i e s
ethical 5 ) To man age diversity
6 ) A t t i t u d e t o w a r d s d i f f e r e n t w o r k groups
7 ) Glob ali zation
8) ) Org an i za tio na l restructur ing
9) ) C h a n g i n g d e m o g r a p h i c s o f work-
force 10 ) C h a n g e d employee’ s
expe cta tio ns 11 ) challenges
PERFORMANCE APPRAISAL
P e r f o r m a n ce a p p r a i s a l m a y b e d e fi n e d a s a structured
formal interaction b e tw e e n a subordinate and
supervisor, t h a t u su a l l y t a ke s th e fo r m o f a periodic
i n te r vi e w ( a n n u a l o r semi- annual), i n w h i ch t h e work
performance of the subordinate is examined and
discussed, w i t h a vi e w t o i d e n t i f y i n g w e a kn e s se s and
s t r e n g t h s a s w e l l a s o p p o r t u n i t i e s f o r i m p r o v e m e n t and

s k i l l s developmen t. I n m a n y or ga ni za ti on s - b u t n o t a l l -
a p p r a i s a l r e s u l t s a r e used, e i th e r d i r e c t l y o r indirectly
to help determine reward outcomes. That is, the
appraisal results are used to identify the better
p e r fo r m i n g e m p l o ye e s w h o s h o u l d g e t t h e m a j o r i t y of
a va i l a b l e m e r i t p a y increases, bonuses, a n d promotions.
B y t h e s a m e token, a p p r a i s a l r e s u l t s a r e u se d to
identify the poorer performers who may requir e some f o r m
o f counseling, o r i n e x t r e m e cases, demotion,
dismissal or decreases in pay. Whether this is an
appropriate use of performance appraisal - the
a s s i g n m e n t a n d j u s t i f i ca t i o n o f r e w a r d s a n d p e n a l t i e s -
is a very uncertain and contentious matter.
Basic Purposes
Effective performance appraisal systems contain two basic systems
operating in conjunction: an evaluation system and a feedback
system.
The main aim of the evaluation system is to identify the performance
gap ( i f any).
T h i s g a p i s t h e sh o r t f a l l t h a t o c c u r s w h e n performance
d o e s n o t m e e t t h e s t a n d a r d se t b y t h e o r g a n i za t i o n as
acceptable. T h e m a i n a i m o f t h e f e e d b a c k s y s t e m i s to
i n f o r m t h e e m p l o y e e a b o u t t h e q u a l i t y o f h i s o r her
performance.

( However, t h e i n f o r m a t i o n f l o w i s n o t e x c l u si v e l y one
way. The appraisers also receive feedback f rom the employee about
job problems, etc.)
O n e o f t h e b e s t w a y s t o a p p r e c i a t e th e p u r p o s e s
of performance a p p r a i s a l i s to l o o k a t i t f r o m t h e different
viewpoints of the main stakeholders: the emplo yee and
the organization.
Employee Viewpoint:
From the employee viewpoint, the purpose of
pe r fo r ma n ce a p p r a i s a l i s four- fold:
( 1 ) Tell me what you want me to do
( 2 ) Tell me how well I have done i t
(3) ) Help me improve my performance
(4) ) Reward me for doin g well.
Organizational Viewpoint:
F r o m th e organi za tion ' s viewpoint, o n e o f t h e most
important reason s for having a system of performance
a p p r a i s a l i s to e s t a b l i s h a n d u p h o l d t h e p r i n c i p l e
of accountability.
For decades i t has been known to resear chers that one
o f t h e c h i e f ca u s e s o f o r g a n i z a t i o n a l f a i l u r e i s " non-
alignment of responsibility and accoun tabi lity. "
Nonalignment occurs where employees are given
r e s p o n si b i l i t i e s a n d duties, b u t a r e n o t h e l d accountable

f o r t h e w a y i n w h i c h t h o se r e s p o n s i b i l i t i e s a n d duties
a r e performed. W h a t t y p i c a l l y h a p p e n s i s t h a t several
i n d i v i d u a l s o r w o r k u n i t s a p p e a r t o h a v e overlapping
roles. T h e o ve r l a p a l l o w s - i n d e e d a c t i ve l y e n c o u r a g e s -
e a c h i n d i v i d u a l o r b u s i n e s s u n i t t o " p a s s t h e buck" to
t h e others.
Ultimately, i n t h e se ve r e l y non- a l i g n e d system, n o one
i s a c co u n ta b l e f o r anything. I n t h i s event, t h e principle
o f a c c o u n t a b i l i t y b r e a k s d o w n completely. Rganizational
failure is the only possible outcome.
F o r m a l v e r s u s In f o r ma l
ap praisa l
Formal appraisals usually occur at specified t
ime
periods- o n c e o r t w i c e a year. O r m a l a p p r a i s a l s a r e most
o f te n r e q u i r e d b y t h e o r g a n i za t i o n f o r t h e p u r p o se
of employee evaluation. Informal performance appraisal
ca n o c cu r w h e n e v e r t h e s u p e r vi s o r f e e l s t h e n e e d s
for communication. Man y organizations en courage a f
ixture o f b o t h f o r m a l a n d i n f o r m a l appraisals. The
formal a p p r a i s a l i s m o s t o f t e n se e d a s p r i m a r y
evaluation. However, t h e i n f o r m a l a p p r a i s a l i s ve r y
h e l p f u l f o r more performance feedback. Informal
appraisals should not take pla ce of formal Performance
evaluation

Whose performance should be rated?
T o t h e q u e s t i o n a s t o w h o s e p e r f o r m a n ce sh o u l d be
rated, t h e a n sw e r i s o b v i o u s employees. W h e n w e say
employees, i s i t i n d i vi d u a l s o r teams? Spe ci fi call y, the
team may be defin ed as the individual, work group,
division, o r organization. I t i s a l s o p o s s i b l e t o define t h e
rate at multiple levels. For example, under some
conditions, i t m a y b e d e s i r a b l e t o a p p r a i s e performance
b o t h a t t h e work- g r o u p l e ve l f o r merit- p a y i n cr e a s e s and
a t t h e i n d i v i d u a l l e v e l to a s s e s s t r a i n i n g needs.
Who are raters?

R a t e r s ca n b e i m m e d i a t e super viso rs, s p e c i a l i s t s f rom
t h e H R department, department, subordi nate s, peers,
committees, clients, s e l f . appraisals, o r a combination
o f several.
Problems of rating
P e r f o r m a n ce a p p r a i s a l s a r e su b j e c t to a w i d e va r i e t y
of inaccuracies a n d b i a se s r e fe r r e d t o a s . r a t i n g errors..
These errors occur in the rater’ s observations,
judgments, and information processing, and can
seriously affect assessment
Results: The most common rating errors are
1 ) L e n i e n c y o r severity
2 ) Central tendency

3) ) H a l o effect
4) ) R a t e r effect
5) ) P r i m a c y a n d R e g e n c y
effects 6 ) P e r ce p t u a l set
7 ) Performance dimension behaviors
8 ) S p i l l o ve r effect
9 ) S t a t u s effect
Solving raters problems

The best way to overcome these problems is to
p r o vi d i n g t r a i n i n g t o th e raters. F r o m a p r a c t i ca l p o i n t of
view, s e ve r a l factors, i n cl u d i n g t h e e x t e n t t o w h i ch pay
is related to performance ratings, union pressure,
tu r n o ve r rates, t i m e co n s t r a i n t s a n d t h e n e e d t o justify
r a t i n g s m a y b e m o r e i m p o r t a n t t h a n t raining, influencing
t h e r a t i n g s t h a t r a t e r s a c t u a l l y give. T h i s m e a n s that
i m p r o v i n g r a ti n g s y s t e m s i n vo l ve s n o t j u s t t r a i n i n g the
raters but rectifying outside factors s u ch as union
pressure. An d i t m e a n s t h a t a r a te r t raining, t o be
effective, sh o u l d a l s o a d d r e s s real- l i f e p r o b l e m s such
as the fact that union representatives will t ry to
i n f l u e n ce s u p e r vi s o r s t o r a t e e v e r y o n e high. Training
h e l p s t o i m p r o ve t h e a p p r a i s a l s y s t e m b y overcoming
d i s t o r t i o n t h a t o c c u r s d u e t o t h e raters, e r r o r s su ch as
halo, leniency, c e n t r a l t e n d e n c y a n d bias. T r a i n i n g of
r a t e r s m u s t h e l p s t r e n g th e n t h e fa c t o r s t h a t t e n d to

improve accuracy of ratings and weaken those that
lower the accu racy of the performance measurement.
What should be rated?

O n e o f th e s t e p s i n d e si g n i n g a n a p p r a i sa l programme is
to determine the evaluation criteria. I t i s obvious that t h e
cr i t e r i a s h o u l d b e r e l a t e d t o t h e job. T h e s i x criteria for
asse ssing performance are:
1 ) Quality
2 ) Quantity
3 ) Timeliness
4 )  C o s t e ffe ctiveness
5 ) Need for supervision 6 )
Interpersonal impact
Methods of Appraisals
T h e l a s t t o b e a d d r e s s e d i n t h e p r o ce s s o f d e s i g n i n g an
appraisal programme is to determine method( s) of
evaluation. N u m e r o u s m e t h o d s h a ve b e e n d e vi s e d to
measure the quantity a n d q u a l i t y o f employee’ s job
performance.
E a ch o f t h e m e t h o d s d i s cu s s e d co u l d b e e f f e c t i v e for
some purposes, for some organizations. None should be dismissed or
accepted as appropriate except as they

relate to particular type of employees. Broadly all
approaches can be classified into:
1 ) Past- o r i e n t e d methods
2 ) Future- orient ed
methods
Each group has several techniques. Some of them are
Behavioral Anchored Rating Scales

The term use d to describe a performance rating that
f o cu s e s o n s p e ci f i c b e h a v i o r s o r se t s a s i n d i ca to r s
of effective or i n e f f e c t i ve per forman ce, r a th e r than
on b r o a d l y stated a d j e ct i ve s s u ch as "
average, above average, or below average". Other
variations are:
1 .  B e h a v i o r a l o b se r va t i o n scales
2 . B e h a v i o r a l e x p e c t a t i o n s scales
3 .  N u m e r i c a l l y a n ch o r e d r a t i n g scales
The term used to define a set of a d j e c t i ve s or
descriptive statements. If the rater believes the
employee possessed a t rait l isted, the rater checks the
i tem; i f not, t h e r a t e r l e a ve s h i m i t e m blank. Rating
s co r e f r o m t h e c h e c k l i s t e q u a l s t h e n u m b e r o f checks.
Critical Incident Technique

The term used to describe a method of performance
appraisal that makes l ists of statements of very

e f fe c t i v e a n d ve r y i n e ff e c ti ve b e h a vi o r f o r employees.
T h e l i s t s a r e co m b i n e d i n to categories, w h i ch va r y with
the job. Once the ca t e g o r i e s are developed and
statements of e f fe c t i v e and i n e f f e c t i ve behavior
provided, the evaluator prepares a log for each
employee. During the evaluation period, the evaluator
r e c o r d s e xa m p l e s o f cr i t i c a l b e h a v i o r s i n e a c h o f the
categories, and the log is used to evaluate th
e
employee year end.
Forced Choice Method

This apprai sal method has been developed to prevent
evaluators from rating emplo yee s to high. Using this
method, the evaluator has to se lect from a set of
descriptive statements, s t a te m e n t s t h a t a p p l y t o the
employee. The statements are weighted and summed to
at, e f f e c t i v e n e s s index.
Forced Distribution
The term used to describe an appraisal system similar to grading on a
curve.
T h e e v a l u a to r s a r e a s ke d t o r a te e m p l o y e e s i n some
f ixed distribution of categories. One wa y to do this is to
type the name o f each employee on a card and ask the
e va l u a to r s t o s o r t t h e ca r d s i n t o p i l e s co r r e sp o n d i n g to
rating.

Graphic Rating Scale
T h e t e r m u se d t o d e f i n e t h e o l d e s t a n d m o s t widely
used performance apprai sal method. The evaluators are
given a graph and aske d to ra te the employees on each
o f t h e chara cte risti cs. T h e n u m b e r o f cha racteri stics
can vary from one to one hundred. The rati ng can be a
m a t r i x o f b o x e s f o r th e e va l u a t o r t o c h e c k o f f o r a
bar graph w h e r e t h e e va l u a t o r c h e c k s o f f a l o c a t i o n
relative t o t h e e va l u a t o r s rating.
Narrative or Essay Evaluation
T h i s a p p r a i s a l m e th o d a s k s t h e e va l u a to r t o describe
s t r e n g t h s a n d w e a k n e s se s o f a n employee' s behavior.
S o m e c o m p a n i e s s t i l l u s e t h i s s m e t h o d exclusi vel y,
whereas in others, the method has been combined with
t h e g r a p h i c r a t i n g scale.
Management by Objectives
The management by objectives performance appraisal
method has the supervisor and employee get together to
se t o b j e c ti ve s in quantifiable terms. The appraisal
m e t h o d i s w o r k e d to e l i m i n a t e c o m m u n i c a t i o n problems
b y th e e s t a b l i sh m e n t o f r e g u l a r meetings, emphasizing
results, and by being an ongoing pro cess where new
o b j e c t i v e s h a v e b e e n e s t a b l i sh e d a n d o l d o b j e ct i ve s are
modified as necessary in l ight of changed conditions.

Paired Comparison
T h e t e r m u se d t o d e s cr i b e a n a p p r a i s a l m e t h o d for ranking
employees. First, the names of th e employees
t o b e e va l u a t e d a r e p l a c e d o n s e p a r a t e s h e e t s i n a
p r e d e t e r m i n e d order, so th a t e a ch p e r s o n i s compared
w i t h a l l o th e r e m p l o ye e s t o b e evaluated. T h e evaluator then
checks the per son he or she feels has been the
b e t t e r o f t h e t w o o n t h e cr i t e r i o n f o r e a c h comparison.
T yp i c a l l y t h e c r i te r i o n i s t h e e m p l o y e e s o v e r a l l ability
to do the present job.
Ranking
The term ranking has been used to describe an
alternative method of performance appraisal where the
su p e r vi so r has been asked to order his or her
e m p l o ye e s i n t e r m s o f p e r f o r m a n c e f r o m h i g h e s t to
lowest.
Weighted Checklist
The term used to describe a performance appraisal
method where su p e r v i so r s or personnel specialists
f a m i l i a r w i t h t h e j o b s b e i n g e v a l u a t e d p r e p a r e d a large
l ist of descriptive statements about effective and
i n e f fe ct i ve b e h a v i o r o n jobs.

Performance Interview
P e r f o r m a n ce I n te r v i e w i s a n o t h e r s t e p i n t h e appraisal
process. Once the Appraisal has been made of
employees, t h e r a t e r s sh o u l d d i s cu s s a n d r e v i e w the
p e r fo r m a n ce w i t h t h e rates, s o t h a t t h e y w i l l receive
f e e d b a c k a b o u t w h e r e t h e y s t a n d i n t h e e ye s o f the
superiors. Feedback i s nece ssar y to effect improvement
in performance, especially when it is adequate.
S p e c i f i c a l l y P e r f o r m a n c e I n t e r v i e w h a s t h r e e goals
1 ) To change behavior of employees. Whose
performance does not meet Organizational
requirements or their own personal goals?
2) ) To maint ain t he behav ior of employees who per
form i n a n a c c e p ta b l e manner,
3) ) To recog nize s uperior performance behavior so th
at
they will be continued.
Use of appraisal data

T h e f i n a l s t e p i n t h e e va l u a t i o n p r o c e s s i s t h e u se
of evaluation data. T h e H R d e p a r t m e n t m u s t u s e t h e data
and information generated through performance
evaluation. In one way or the other, d a ta and
information outputs of a performance appraisal
programme can critically influence employer- employee
reward opportunities.

S p e c i f i c a l l y t h e d a ta a n d i n f o r m a t i o n w i l l b e u se f u l in
the
1) ) F o l l o w i n g a r e a s o f HRM
2) ) Remuneration administrat ion
3) ) V a l i d a t i o n o f s e l e c t i o n programs
4) ) Employee tr aining and development
programs 5 ) Promotion, t r a n s fe r a n d lay- o f f
decisions
6) ) G r i e v a n c e a n d d i s c i p l i n e programs
Performance Management verses Performance

Appraisal
The shift from performance appraisal to performance
m a n a g e m e n t r e q u i r e s a sh i f t i n fo c u s f r o m a single
e ve n t t o a c o n t i n u o u s process. T h e p r o c e s s provides
e m p l o ye e s w i t h d i r e c t i o n a n d su p p o r t v i a a detailed
p e r fo r m a n ce plan c o m p o se d of goals, action steps,
measurements, and coaching throughout the yearlong
cycle. Pe r fo r m a n ce m a n a g e m e n t i s d i f fe r e n t f r o m the
single appraisal because i t :
1 ) B e g i n s w i t h p l a n n i n g a t t h e b e g i n n i n g o f t h e y e a r to
c l a r i f y j o b e x p e c ta t i o n s a n d a c co u n ta b i l i t i e s between
employee and manager
2 ) Eliminates current employee concerns that
e xp e c t a t i o n s a r e va g u e o r n o t articulated

3 ) Turns th e apprai sal doc ument and appraisal meeting
i n to t h e year- e n d f e e d b a c k s u m m a r y a n d previous
meetings on performance
F i n d i n g s o f th e S t u d y
1 ) I t can be i nferred by t he study tha t the employe es are aware of
the present Performance appraisal System followed in the
company.
2 ) Most of the executives are satisfied with the
performance appraisal system followed in the
company. This shows that the present performance
appraisal system is satisfactory
3 ) Further improvement in th e sys tem c an be made i n
order to attain full satisfaction of the
employees/ e xe cu ti ve s o f t h e company.
4) ) Greater part a grees t hat th e perfo rmance s
tandards set are clear and achievable..
5) ) M a j o r i t y of the employees f a vo r e d t raining for
the a p p r a i s e r s t o c a r r y a p p r a i sa l programme..
6) ) In r e sp o n s e to the company spending of
con sider able t ime and attention for the performance
appraisal system, most of the employees felt that the
company sp e n d s th e n e c e s sa r y t i m e a n d a t t e n t i o n i n
following

7 ) M o s t o f t h e e xe c u t i ve s su r ve ye d a r e sa t i s f i e d w i t h the
Self- A p p r a i sa l process being followed in the
company.
8) ) I t ca n b e sa i d t h a t t h e p r e s e n t s y s t e m o f performance
a p p r a i s a l i s e f f e c t i ve i n b r i n g i n g o u t t h e performance
f e e d b a c k b y t h e r e v i e w i n g a n d r e p o r t i n g officers.
9) ) M o s t of th e e m p l o ye e s agree that the help
and g u i d a n c e p r o vi d e d i s s u f f i c i e n t i n d i c a t i n g that
the management sp e n d s co n s i d e r a b l e t ime on
providing

Chapter 5
R e c o mm e n d a t ion s & Suggestions:
 I R D A u s e t r a d i t i o n a l m o d e o f t r a i n i n g and
m a r k e t i n g w h i c h s h o u l d b e r e p l a ce d w i t h t h e u s e
of latest e m e r g i n g technologies.
 Regular feedback is recommended to know the l ike & dislike
and also expectations of the Customers.
 Proper weightage should be given to improve the
communication skill of the advisors so as to improve
customer relations.
 D u r i n g t r a i n i n g t o a d vi s o r s i m p o r t a n c e s h o u l d be
g i v e n to p r o v i d e th e m o s t i m p o r t a n t i n f o r m a t i o n to
them l ike making well aware about the products
of their organization.
 Marketing materials received before the
advisor reaches the customer should add value to the
product preparing more awareness in customers.

Chapter 6
Conclusion
I n p r e se n t scenario, t h e r e i s a cut- t h r o a t competition

among the companies to ge t more and more prospects
t o b u y t h e i r v a r i o u s products. T h e o n l y w a y t o achieve
the target is t rain the insurance advisors in the
best
B i r l a S u n L i f e In su rance uses all those possible

t o o l s a n d l a te s t t e ch n i q u e s l i k e so f t w a r e f o r calculating
premiums, e t c w h i c h h e l p s th e i r i n su r a n c e a d v i s o r s to
se l l m o r e o f t h e i r products. T h e y h a ve sh o w n a l o t
of creativity a n d i n n o va t i o n i n t h e i r t r a i n i n g p r o g r a m s and
have succeeded in achieving the desired outcome.

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A REPORT

Birla Sun Life Insurance

Mr. Rama Krishna Raju T

Under the Guidance and Supervision

M P BIRLA INSTITUTE OF MANAGEMENT 1

PLACE: Bangalore Dr. N S Mallavali

M P BIRLA INSTITUTE OF MANAGEMENT 2

PLACE: Bangalore Dr. N S Mallavali

M P BIRLA INSTITUTE OF MANAGEMENT 2

PLACE: Bangalore Mr. Rudra Murthy

M P BIRLA INSTITUTE OF MANAGEMENT 3

Birla Sun Life Insurance

This is to certify that has completed his

M P BIRLA INSTITUTE OF MANAGEMENT 4

I hereby, declare that this internship report entitled . An Organization

Place: Bangalore Rama Krishna Raju T

M P BIRLA INSTITUTE OF MANAGEMENT 5

I take this opportunity to extend my sincere gratitude to Mr. Ranjan Anand,

Finally, I thank my dearest Parents for their continued support.

M P BIRLA INSTITUTE OF MANAGEMENT 6

M P BIRLA INSTITUTE OF MANAGEMENT 7

M P BIRLA INSTITUTE OF MANAGEMENT 8

CHAPTER-1 THEORYTICAL SETTING

M P BIRLA INSTITUTE OF MANAGEMENT 9

Organization structure involves formal and recognized

M P BIRLA INSTITUTE OF MANAGEMENT 10

the person e n ti t l e d to receive the same on t

M P BIRLA INSTITUTE OF MANAGEMENT 11

M P BIRLA INSTITUTE OF MANAGEMENT 12

M P BIRLA INSTITUTE OF MANAGEMENT 13

M P BIRLA INSTITUTE OF MANAGEMENT 14

The insurance sector in India has become a full

1912 The Indian l i fe assurance companies’ act enacted

M P BIRLA INSTITUTE OF MANAGEMENT 15

In 1993 , Malhotra committee, headed by former

The Malhotra committee was setup with the

M P BIRLA INSTITUTE OF MANAGEMENT 16

M P BIRLA INSTITUTE OF MANAGEMENT 17

M P BIRLA INSTITUTE OF MANAGEMENT 18

M P BIRLA INSTITUTE OF MANAGEMENT 19

Since being set up as an independent statutory

M P BIRLA INSTITUTE OF MANAGEMENT 20

Sun Life Financial is a leading international

M P BIRLA INSTITUTE OF MANAGEMENT 21

M P BIRLA INSTITUTE OF MANAGEMENT 22

Aditya Birla Group – The Indian MNC:

M P BIRLA INSTITUTE OF MANAGEMENT 23

The group is also

M P BIRLA INSTITUTE OF MANAGEMENT 24

Growing Financial Services Clout:

Sun Life has a global reputation as top

M P BIRLA INSTITUTE OF MANAGEMENT 25

M P BIRLA INSTITUTE OF MANAGEMENT 26

M P BIRLA INSTITUTE OF MANAGEMENT 27

a) The plan is a unit l inked non- participating plan which

b) Lifelong Insurance cover t i l l age 100 years in addition

c) A choice of three Investment Fund Options: Protector,

d) Flexibility to make additional lump sum investments

M P BIRLA INSTITUTE OF MANAGEMENT 28

f ) Options to make tax f ree Partial Withdrawal f rom fund

h) Increase the Sum Assured during the premium- paying

i ) Convenient premium payment options: Short or

b) A choice of three Investment Fund Options