PROJECT ON

HRM IN INSURANCE

BACHELOR OF COMMERCE

(BANKING AND INSURANCE)

SEMESTER – VI

FOR THE ACADEMIC YEAR 2020-2021

SUBMITTED

In partial fulfillment of the requirements for the Award

Of the Degree of Bachelor of Commerce Banking and

Insurance

BY

ESHIKA MALUSARE

Roll No. 2082335

UNDER THE GUIDANCE OF

PROF.OM DEWANI

University of Mumbai

VPM’s R.Z. SHAH COLLEGE OF ARTS, SCIENCE AND

COMMERCE

Mithagar Road, Mulund (E), Mumbai - 400081

 INDEX

NO. TOPIC PAGE

NO.
CHAPTER 1
1. INTRODUCTION 7 - 11
2. HISTORY 12
3. INDIAN VIEW 13
4. GLOBAL VIEW 14
5. IMPORTANCE 15
CHAPTER 2
6. RESERCH METHODOLOGY 16
7. OBJECTIVE 17
8. SCOPE 18
9. EVLAUTION 19
10. CHARACTERSTICS OF HRM 20 - 21
11. HUMAN RESOURCE PLANNING 27
CHAPTER 3
12. LITERACTURE REVIEW 28 - 29
13. INTRODUCTION OF INSURANCE 30 - 35
14. IRDAL 36 - 39
CHAPTER 4
15. DATA ANALYSES 40
16. FUNCTION OF HRM 41 - 90
17. PROFILE OF LIC 91 94
CHAPTER 5
18. CONCLUSION 101
19. QUESTIONNAIRE 102 - 103
20. BIBLIOGRAPHY & WEBLIOGRAPHY 104
 LIST OF GRAPHS

NO. NAME PAGE

NO.

1. POSITIVE IMAGE IN FRONT OF HRM 95

2. DOES IT HELP TO INCREASE THE SAVING HRM LIFE 96

INSURANCE?

3. HRM PROVIDE BENEFITE AND OPPORTUNITY TO HUMAN 97

RESOURCE?

4. HOW WILL ARE THE ORGANIZATION AFFIRMATIVE ACTION 98

NEED CLARIFIED AND SUPPORTED IN THE SELECTION
PROCESS?

5. WHAT IS OVERALL PERCEPTION ABOUT LIC OF INDIA? 99

6. ARE YOU SATISIFIED FOR INSURING FOR LIC 100

 Certificate

This is to certify that Ms. ESHIKA MALUSARE has worked and duly completed her
Project Work for the degree of Bachelor in Commerce (Banking and Insurance) under
the Faculty of Commerce in the subject of BANKING AND INSURANCE and her
project is entitled, “HRM IN INSURANCE” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is her own work and facts reported by her personal findings and investigations.

Name and Signature of

Guiding Teacher.
 Declaration by learner

I the undersigned Miss ESHIKA NITIN MALUSARE here by, declare that the work
embodied in this project work titled “HRM IN INSURANCE”, forms my own
contribution to the research work carried out under the guidance of DR.OM DEWANI
is a result of my own research work and has not been previously submitted to any
other University for any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and Signature of the Guiding Teacher.

 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. B. S AJITKUMAR for providing the

necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator DR.OM DEWANI for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide DR.OM
DEWANI whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project.
 CHAPTER 1

INTRODUCTION

HRM IN INSURANCE

Under present market forces and strict competition, the insurance companies
are forced to be competitive. Contemporary companies must seek ways to become
more efficient, productive, flexible and innovative, under constant pressure to
improve results. The traditional ways of gaining competitive advantages have to be
supplement with organization capability i.e. the firm’s ability to manage people.
Organizational capability relates to hiring and retaining competent employees and
developing competencies through effective human resource management practices.
Indeed, developing a talented workforce is essential to sustainable competitive
advantage. High performance work practices provide a number of important sources
of enhance organizational performance. HR systems have important, practical
impacts on the survival and financial performance of firms, and on the productivity
and quality of work life of the people in them.

Liberalization in the Indian insurance sector has opened the sector private
competition. The insurance industry forms an integral part of the global financial
marker, with insurance companies being significant institutional investors. In recent
decades, the insurance sector, like under financial services, has grown in economic
importance.

A number of foreign insurance companies have set up representative offers in India

and have also tied up with various asset management companies.

All these developments have forced the insurance companies to be competitive.

What makes a firm best is not just technology, bright ideas, masterly strategy or the
use of tools, but also the facts that the best firms are better organized to meet the
needs of their people, to attract better people who are more motivated to do a
superior job.
In this manner the management of human resources becomes very crucial. Thus, this
study on HRM practices in insurances companies was taken up.
 HUMAN RESOURCE MANAGEMENT

INTRODUTION

"Human resource management (HRM) is planning personnel needs, recruiting.

Selecting, training and developing capable employees, placing them in productive
work environments and rewarding their performance.”

Thus, Human resource management refers to a set of programmes, functions

and activities designed and carried out to maximize both employee as well as
organizational effectiveness. It is concerned with the people dimensions in the
management. Since every organization is made up of people, acquiring their services
developing their skills motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organization are essential to
achieving organizational objectives. This is true, regardless of the type of organization
-government, business, education, health, recreation or social actions.

Human resource is one of the natural resources of any country's economy. It is

the wealth of the country. In the context of banking, human resource is of greater
importance. The deployment of human resource through proper and efficient
selection, training and development of human resource through proper and efficient
selection, training and development, is called Human Resource Management.

The success of any organization largely depends on efficient human resource

management, apart from operations, marketing and sales, the HR department manages
all the efficient people working in operations and marketing divisions in any
organization.

Thus, HRM refers to a set of programmes, functions and activities designed and
carried out in order to maximize both employees as well as organizational
effectiveness. Human resource management is based on four fundamental.

PRINCIPLES:
1. Human resources are the most important assets important assets an
organization has and their effective management is the key to its success.
2. Organizational success is most likely to be achieved if the personnel policies
and procedures are closely linked to corporate and strategic plans.
3. Organizational culture, values and climate significantly influence managerial
behavior and exert a major influence on the achievement of excellence. Hence,
continuous effort is needed starting from the management in order to make the
organizational culture acceptable.
4. Human resource management concerned with integrating all members of the
organization involved and working together with a sense of common purpose.
5. Principle of individual development to offer full and equal opportunities to
every employee to realize his/her toll potential.
6. Principle of scientific selection - to select the right person for the right job.
7. Principle of free now of communication to keep all channels of
communication open & encourage upward, downward, horizontal, formal &
informal communication.
8. Principle of participation to associate employee representatives at every level
of decision making.
9. Principle of fair remuneration to pay fair & equitable water salaries
commiserating with jobs.
10. Principle of incentive to recognize and reward good performance.
 DEFINITIONS OF HRM
"HRM is the management function that is concerned with getting training, motivating
and keeping competent employees."

"HRM is a most advanced approach in the field of resource mgmt, talks about optimal
utilization of human capital. The approach is integrative and supportive."

"HRM does talk about the cultivation of a skillful environment in which people or
employee associate are able to extract their highest potential.

HRM deals with the day to day operations of the human resources department. This
curriculum would include business law, compensation, employee relations, benefits,
and medical etc.

Human Resource Management ("HRM") is a way of management that links people-

related activities to the strategy of a business or organization. HRM is often referred
to as "strategic. HRM" It has several goals.

1) To meet the needs of the business and management

2) To link human resource strategies

3) To find ways for human resource to add value to business

4) To help a business gains the commitment of employs to its value, goals and
objectives

5) Human Resource or Manpower planning

6) Recruitment selection and placement of personnel

7) Training and development of employs

8) Appraisal and performance of employs

9) Setting general and specific management policies for the organization

10) Developing and maintaining motivation for workers through incentives.

 HISTORY OF INSURANCE SECTOR IN INDIA

The history of Insurance in India started with life insurance in 1818 when it was conceived as
a means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered more risky
for the coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General Insurance Business in India, on
the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the British. Till the
end of nineteenth century insurance business was almost entirely in the hands of overseas
companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 1920's and
1930 sullied insurance business in India.

By 1918 there were 176 insurance companies. The first comprehensive legislation was
introduced with the Insurance Act of 1938 that provided strict State Control over insurance
business. The insurance business grew at a faster pace after independence. Indian
companies strengthened their hold on this business but despite the growth that was
witnessed, insurance remained an urban phenomenon.
 INDIAN VIEW
Human Resource HRM contributes to organizational performance in different ways
through sand functional basis through effective realignment when the external
environment changes and by building on organization context the managerial
ideologies in Indian dates tack at Least four centuries. Arthashastra written by the
celebrated Indian scholar practitioner chanakya and three key area of exploration.

 Public policy
 Administration and utilization of people and
 Taxation and accounting principle

Parallel to such pragmatic formulations, a deep rooted value system, drawn from the
early Aryan thinking, called Vedanta, deeply influenced the societal and institutional
values in India. Overall Indian collective culture had an interesting individualistic
core while the civilization value of duty to family ups and society was always very
important while vedantic ideas nurtured an inner private sphere of individualism.

There has been considerable interest in the notion that managerial values are a
function of the behaviors of managers England, Dhingra and Agarwal (1974) were
early scholars who contended that managerial values were critical forces that shape
organizational architecture. The relevance of managerial values in shaping modern
organizational life is reflected in scholarly literature linking them to corporate culture
organizational commitment and job satisfaction as well as institutional governance
Thus understanding the source of these values and in particular societal work values
had become a popular line of enquiry, and great deal of evidence has been presented
to support the importance of national culture in shaping managerial values. One of the
most widely read formulation of this literature is the seminal work of Hofstadter who
popularized the nation of clustering culture in generic dimensions such as power
distribution, structuring, social orientation and time horizons. In turn, these
dimensions could be employed to explain relevant work attitudes, job incumbent
behaviors and the working arrangements within organizational structures. Two of
these dimensions were individualism and collectivism.
 GLOBAL VIEW

September 19, 2013 - A NEW job survey is that the labour market in the UK
continues to strengthen as the total number of job vacancies increases September 11.
2013. The 29 84 million people were in week in May to July 2013 according to the
labour force survey (LFS) The number of people employed was 80000 higher tis
quarter and 275000 higher than last year.

At the sharpest rate is over six years August 9, 2013 Employers duty to prevent illegal
working in underpinned by a civil penalty regime which is now being reviewed with a
raft of government proposal aimed at strengthening and simplifying the system.

The proposals are part of the forthcoming Immigration Bill designed to make it more
difficult for illegal immigrants to live and work in the UK. August 14 2013 Surely
such as approach amounts to discrimination and down play the merits if a flexible
labour market or it is time for UK business that rely on migrant workers to rethink
their treatment.

Even HR professionals working in organizations with a primarily local or domestic

focus recognize that global issues have an increasing influence on markets, supply
chains and business practices.

HR practitioners must develop now competencies, mainly through developing cross-

cultural understanding and substantial knowledge in international employment
legislation, labour law and economic trends. Companies are lured into developing
countries not only by cheap labour but also by increasingly skilled or trainable labor
and proximity to growth markets. No longer are other countries entirely dependent in
the health of the US economy Developing countries-particularly China and India are
driving a wave of global growth, and emerging markets such as Indonesia, Malaysia,
the Philippines, South Africa, Thailand. Turkey and Vietnam are raising sources of
talent.
 IMORTANCE OF HRM IN INSURANCE SECTOR

Human resource is one of the natural resource of any country’s economy. It is the
wealth of the country. In the context of insurance, human resource is of great
importance. The deployment of human resource through proper and efficient
selection, training and development is called Human Resource Management. The
success of an insurance company largely depends on efficient human resource
management, apart from operations marketing and sales, the HR department manages
all the efficient people working in operations and marketing divisions in any
organization The importance of management in business is universally accepted
Modern business is highly Competitive needs efficient and capable management
following are few of the points the suggest the importance of management:

1. Optimum use of resource

2. Competitive Strength
3. Motivates employees
4. Expansion of Business
5. Reduces turnover & absenteeism
 CHAPTER 2

RESERCH METHODOLOGY

This study was hand on primary data gathered with the help of a questionnaire
comprising three sections. The first section 10 background questions and the second
section contain 20 statements about human resource management practices. The third
section contained 45 statement related to employee service orientation.

And in secondary data company’s training manual and reports; information from
website will be used.

The days gathered were analyzed with the help of statistical tools like actual counts,
percentage, compilation, standard deviations, factor analysis, analysis of variance
(ANOVA), and mean and grand mean scores. Actual cost percentages and means
were used to assess the frequency and percentage extent of certain variables related to
general and background information. Correlation were used to assess the relationships
of human resource management practices used in insurance companies and standard
deviations were calculated to understand the variations in data collected through
responses. Factor analysis was basically wed to reduce the data collected on the five
point scale for further analysis. ANOVA was used to assess de significant differences
regarding hr practices between Indian and multinational insurance companies and
between the perception of male and female employees/ executives Means and grand
means were helpful in explaining the extent and direction of prevalence of hr
practices and related factors.
 OBJECTIVES

 Societal –To be ethically and socially responsible to the needs and challenges
of the society.
 Organizational - To bring organizational effectiveness and serve other
department.
 Factional - To do the optimal utilization of the resource and respond to the
need of the organization.
 Personal -To assist employees in achieving their personal goals to motivate
and retain them thereby enhancing the individual’s contribution to the
organization.
 Human Capital- Assisting the organization in obtaining the right number and
types of employees to fulfill its strategic and operational goals.
 Development Organizational Climate - Helping to create a climate in which
employees are encouraged to develop and utilize their skills to the fullest and
in play the skills and abilities of the workforce efficiently.
 Communicating HR policies to all employees - is the responsibility of HRM
to communicate in the fullest possible sense both in tapping ideas opinions and
feelings of customers, non customers, regular and other external public as well
as in understanding the views of internal human resources.
 Providing the organization with well-trained und well-motivated employees -
HRM requires that employees be motivated to exert their maximum efforts,
that their performance be evaluated properly for results and that they be
rewarded on the basis of their contributions to the organization.
 SCOPE

 Training is an essential element of HRM. This develops skills & capital to

work at higher level and positions.
 Performance appraisal is an important area of HRM. The purpose of
performance appraisal is to study criticality the performance of an employee
and to guide him to improve his performance.
 It related to the study of capabilities of employees. It is useful for proper
placement and cancer development of employees.
 Under HRM employees should be given guidance for their self development
and career development.
 Employees welfare is within the scope of HRM welfare facilities are useful for
creating efficient and satisfied labour force.
 HRM aims at providing conflict free operations throughout organization.
 The Labour or Personal Aspect Thus is concerned with in manpower planning,
recruitment, selection, placement, transfer, promotion, training and
development, lay off and retrenchment, remuneration, incentives productivity,
etc.
 EVALUATION

The History of development of Human Resource Management in India is

comparatively of recent origin. But Kautilya had detail with some of the important
aspects of human resource management in his “Arthasastra” 400 B.C. Government in
those days adopted the techniques of HRM as suggested be kautilya. In its modern
sense it had developed only since independence. Through the importance of labour
officers was recognized as early as 1929 the appointment of officers to solve labour
and welfare problems gained momentum only after the enactment Act of 1948.

Section 49 of the Act required the appointment of welfare officers in companies

employing more than 500 women’s. At the beginning Government was concerned
only with limited aspects of labour welfare. The earliest labour legislation in India
dealt with certain aspect of Indian laborers (Regulation of Recruitment Forwarding
and Employment) sent to various British Colonies in 1830.

The field of Human Resource is evolving and being embraced in even the
smallest of organization today. With the onslaught of legal issues facing the
employment relationship, all enterprises need to be they have an understanding of
human resources .The new overtime ruling is only the beginning of the changes we
see on the landscape of employee management.

Business executives must understand what their entity needs, what compliance
is necessary, and how that can be best embraced within their operation. Through
presentations and HR speaking with a variety of business leaders, I have developed
six steps evaluate your HR function and move forward with a human resource
function shat supports the overall operation.
 CHARACTERISTIC OF HRM

1. Upgrading Manpower:

HRM is basically concerned with the upgrading of manpower working organization.

This leads to improvement in the individual performance of an employee and also
corresponding improvement in the organizational performance.

2. Stress on Training:

HRM includes various schemes arranged for providing education, guidance training
and opportunities to learn and develop employees of all categories and working in
different departments. There is an integrated use of sub systems training, career
development, organizational developments in the HRM programme.

3. Attention to learning and career development:

Earning, self development, career developments are possible through HRM

programmes. These are the core areas of HRM career development is possible
through joining training courses, reading books and periodicals. Earning and career
development raise the capacity of employees to work at highest levels. They are given
higher positions with monetary benefits.

4. Organizational Development:

HRM includes organizational development, which includes effective communication

on within the organization, coordination of different activities elimination conflicts of
different types and creation of orderly atmosphere the whole organization.

5. Team Sprit:

HRM is basically for developing team spirit in the whole organization for thin,
departments and levels of management are properly integrated Team spirit facilitates
orderly growth of the organization in the right direction.

6. Huge spending by Management:

All companies invest huge mine HRM activities trust such expenditure is absolutely
essential for survival in the present competitive business world HR programme
secrete matured, skilled and efficient manpower, which is a valuable asset of a
business unit.

7. Termination of Employment:

Termination is an unpleasant part of any manager's job employees occasionally must

be terminated for breaking rules of failing to performance adequately.

8. Continuous Activity:

HRM is rightly treated as a continuous activity due to new developments taking place
regularly in the business world for this, on the job and off the job training programs
are introduced from time to time.

9. Wide Scope:

The scope of HRM programmes is very vast. It is multidisciplinary in character

Training and guidance are given on different aspects of business management to
enable managers to deal with complex managerial problems and challenges.
 HUMAN RESOURCE PLANNING

George Bernard Shaw said “to be in hell is to drift; to be in heaven is to steer.”Human

resource planning his traditionally honed by organizations do ensure that the right
persons in the right job at the right time.

Human resource planning con be defined as the process by which management

determines how the organization should move from its current manpower position to
its desired position. Through planning, management strives to have the right number
and the night kinds of people at the right places, at the right time, doing things which
result in both the organization and the individual receiving maximum long-run
benefits.

Factors Underlying Increased Interest Human Resource Planning

Undoubtedly, there are many factors that account for the increased attention directed
to human resource planning, but environmental forces globalization, new
technologies, economic conditions, and a changing work force seem particularly
potent These create complexity and uncertainty for organizations Uncertainty can
interfere with efficient operations, to organizations typically attempt to reduce its
impact, formal planning is one common tactic used by organizations to buffer
themselves from environmental uncertainty.

The Process of Human Resource Management Planning

The human resource planning process, demands the HR manager to first understand
the business requirement. Only if he comprehends the nature and scope of the
business, will he be able to employ those who will deliver the required performance.
When it comes to engaging the manpower, the manager should have a keen eye for
spotting the talent. It ensures that the workforce is competent enough the meet the
targets.

Additionally, the existing talent pool' in the workplace should be taken into
consideration, so that people with complementary skills can be employed.

The functions of the HR manager are varied; he has to assess the currently employed
workforce and their shortcomings. Identifying these shortcomings goes a long way in
choosing an efficient workforce.

Human resource planning process, thus, can be considered as one of the strategic
steps for building the strong foundation of an efficient workforce in an organization.

STEPS IN HUMAN RESOURCE MANAGEMENT PLANNING

1. Determining the numbers to be employed at a new location

If organizations overdo the size of their workforce it will carry surplus or

underutilized staff. Alternatively, if the opposite misjudgment is
made, staff may be overstretched, making it hard or impossible to meet production or
service deadlines at the quality level expected. So the questions we ask are:

 How can output be improved your through understanding the interrelation

between productivity, work organizational and technological development?
What does this mean for staff numbers?
 What techniques can be used to establish workforce requirements?
 Have more flexible work arrangements been considered?
 How are the staffs you need to be acquired?

The principles can be applied to any exercise to define workforce requirements,

whether it be a business start-up, a relocation, or the opening of new factory or office.

2. Retaining your highly skilled staff

Issues about retention may not have been to the fore in recent years, but all it needs is
for organizations to lose key staff to realize that an understanding of the patter of
resignation is needed. Thus organizations should:

Monitor the extent of resignation

Discover the reasons for it

Establish what it is costing the organization

Compare loss rates with other similar organizations

Without this understanding, management may be unaware of how many good quality
staff is being lost. This will cost the organization directly through the bill for
separation, recruitment and induction, but also through a loss of long-term capability.

Having understood the nature and extent of resignation steps can be taken to rectify
the situation These may be relatively cheap and simple solutions once the reasons for
the departure of employees have been identified But it will depend on whether the
problem is peculiar to your own organization, and whether it is concentrated in
particular groups (eg by age, gender, grade or skill).

3. Managing an effective downsizing programme

This is an all too common issue for managers. How is the workforce to be cut
painlessly, while at the same time protecting the long-term interests of the
organization? A question made all the harder by the time pressures management is
under both because of business necessities and employee anxieties HRP helps by
considering:

 The sort of workforce envisaged at the end of the exercise

 The pros and cons of the different routes to get there
 How the nature and extent of wastage will change during the run down
 The utility of retraining, redeployment and transfers
 What the appropriate recruitment levels might be

Such an analysis can be presented to senior managers so that the cost benefit of
various methods of reduction can be assessed, and the time taken to meet targets
established.
If instead the CEO announces on day one that there will be no compulsory
redundancies and voluntary severance is open to all staff, the danger is that an
unbalanced workforce will result, reflecting the take-up of the severance offer. It is
often difficult and expensive to replace lost quality and experience

4. Where will the next generation of managers come from?

Many senior managers are troubled by this issue. They have seen traditional career
paths disappear. They have had to bring in senior staff from elsewhere. But they
recognize that while this may have dealt with a short-term skills shortage, it has not
solved the longer term question of managerial supply: what sort, how many, and
where will they come from? To address these questions you need to understand:

The present career system (including patterns of promotion and movement of

recruitment and wastage)

The characteristics of those who currently occupy senior positions

The organization’s future supply of talent

This then can be compared with future requirements, in number and type. These will
of course be affected by internal structural changes and external business or political
changes Comparing your current apply to this revised demand will show surpluses
and shortages which will allow you to take corrective action such as

 Recruiting to meet a shortage of those with senior management potential

 Allowing faster promotion to fill immediate gaps
 Developing cross functional transfers for high fliers
 Hiring on fixed term contracts to meet short-term skills experience deficits
 Reducing staff numbers to remove blockages or forthcoming surpluses

How can HRP be applied?

The report details the sort of approach companies might wash to take. Most
organizations are likely to want HRP system:

 Which are responsive to change

 Where assumptions can easily be modified
  That recognizes organizational fluidity around skills that allow flexibility in supply to
be included
 That is simple to understand and use
 Which are not too time demanding.

NEED OF HUMAN RESOURCE PLANNING

The very objective of insurance is to place the insured in the same financial position
as he was just before the loss. It can be said that the system of insurance can be
explained as social and financial assistance to bus express financial stability to
commerce and industry and basis of credit. The word personnel in the context of any
organization imply the persons connected with the working of that organization or
establishment or in other works the person at work. This denotes the staff of
employees of organization. The tom policy refers to any guidance to action. Hence
policy making are supplement and complementary to each other.

Personnel policy as the guideline which assists in proper working of the organization
and enables it to achieve its various objectives. Policies are broad guidelines as to
how the objectives of a business are to be achieved. Policies provide the guidelines
which we should keep s w while achieving the ends. A policy is predetermined and
accepted e thought and action to serve as a made towards certain accepted objectives
In other words, we can say that policies are related to the organization's c all paper
and its objectives in the various areas with which its operations are concerned.
Personnel policies lay down the decision making criteria in line with the overall
purpose of the organization in the area of human resource management Personnel
policies are developed by the top management to assist the managers at various levels
to deal with the people at work.

Human resource planning essential for the following reasons :

1. Smooth and Efficient Working of Organizations - An Organization heads

personnel with suitable qualification skills, knowledge work experience and
aptitude in order carry out.
2. Its various operations smoothly and efficiently - Human resource planning
fulfills the organizations need for quality workforce.
3. Filling Gaps in Manpower - People in the organization need to be replaced
because the existing ones have either retired, died, resigned or are no longer
capable due to physical mental ailments.
4. Expansion and Diversification- Organization plans for growth through
expansion and diversification will not bear fruits in the absence of the required
human resource.
5. Changing Technology - Rapid changes in production technology, marketing
and management methods have created problem of redundancies, retraining
and redeployment of personnel.
6. Increased Employee Mobility- Employees no longer spend their whole life
working for a single organization. There has been a marked increase in
employee mobility.
7. Government Policies - Government policies with regard to working
conditions working section, contract labour, reservation for women and
weaker section brings about changes in the demand and supply of human
resource.
8. Budgeting- Human resource planning is essential in anticipation the cost of
human resource which facilitates the budgeting process. Through proper
manpower planning, management can avoid both shortage and surplus of
manpower and thereby control labour.
 CHAPTER 3

LITERATURE REVIEW

Considerable literatures are available on the study of Human resource

Development. A review of the available literature is conducted to identity the
development made in the field. The following pages will say about the literature
available on the topic. Chandrasekhar in his paper stated the importance of
Organizational development process for the growth of LTCG.

Agadi and Bails (2008) tried identify and analyze the employee related problems
encountered in the process of HRD in LIC. The study was based on the primary and
secondary data. The Key found that training did not provide any monetary and
promotional benefits to the employees. The lack of training policy was also found to
be prevalent in LIC. The study emphasized on up grading training related information.
The study suggested that reading material should be handed over to employees in
advance to give them sufficient time to go through the material and help them to
participate effectively in the discussions.

Bais (2011) studied existing HRD climate, policy of training and development and
effectiveness and instruments used to appraise the performance of the employees in
LIC The study revealed that training practices in LIC were inadequate and suffered
from certain weaknesses. The performance appraisal was also irregular. It suffered
from superiors favoritisms, prejudices and biases vague performance standards etc.
Majority of the employees were not happy with remuneration and retirement benefits
.The study suggested that the personnel policies regarding placement, promotion,
training and development should be implemented in a flexible manner.

Patre and Gawande (2012) studied the level of job satisfaction and intent to leave
the job among sales force of private sector insurance companies. The study was based
on the opinion of 25 salesmen of 12 private insurance companies in Nagpur city. The
study revealed that job satisfaction level of the sales force in insurance companies was
neither too high nor low on five point rating scale. The respondents showed moderate
level of intention to leave their job. The study suggested that the insurance companies
should try to increase the satisfaction level of their employee on various permanents.
This would help them increase the intention of employees to stay in their organization
and thus control attrition rate.

Kaur (2012) in her paper studied job satisfaction level of employees of public and
private insurance companies in Punjab. The study concluded that income was directly
related with job satisfaction. The private employees were found to be highly satisfied
with the income and training as compared to public sector employees.

Singh (2013) studies the job satisfaction in top ten players of private insurance sector
in Uttar Pradesh. The study was based on primary data. The study revealed that
employees liked to work for organizations which could provide them an excellent
wok culture, an attractive performance band pay package and growth opportunities.

Yadav (2014) in their paper measured satisfaction level of employee of HDFC

Standard life Insurance Company and tied to find out the factors responsible for job
satisfaction. The study was bad on primary data collected from 40 employees of
Napier Town, Jabalpur Branch of Madhya Pradesh. The study found that employees
were satisfied with their salaries and growth opportunities but less supportive working
environment etc led to dissatisfaction among employees The study suggests that the
company should give timely promotion to the deserving employees.

Tiwari (2014) assess the level of job satisfaction among the employees of LIC
working in Rewa and Satna division of Madhya Pradesh. The study showed that job
satisfaction had good impact on employee performance. The factors like convenient
working hours, fairness and participation in detection and chances for future
development increased overall satisfaction of employees. The study suggested that
attractive and competitive pay package along with excellent career opportunities
should be provided to the potential workforce. The apparent performance appraisal
system should be opted by LIC was another suggestion.

Dalai (2015) analyzed the HRD Climate of the public and private sector insurance
companies and found that the overall development of organization was dependent on
its HRD climate and culture. The study revealed that the HRD Climate of the public
sector insurance company was much better than that of the private sector insurance
companies.
 INTRODUCTION OF INSURANCE
Insurance is a form of risk management primarily used to hedge against the risk of a
contingent loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to
another, in exchange for a premium, and can be thought of as a guaranteed and known
small loss to prevent a large, possibly devastating loss.

An insurer is a company selling the insurance, an insured or policyholder is the

person or entity buying the insurance.

The insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage, called the premium.

The principles of insurance are:

1. Indemnity

Insurance is a contract of indemnity where the insurance company indemnifies the

insured against certain risks for a consideration known as premium.

2. Insurable interest

Means the loss of which will directly affect the insured.

3. Utmost god faith

Means that the insured and the insurance company will net willfully hide anything
from each other.

4. Mitigation

Means the insured will not behave irresponsibly and will take due care so that the risk
of loss or the loss is minimized.

5. Subrogation

Means the insurance company acquires legal rights to set on behalf of the insured i.e.
the insurance company steps into the shoes of the insured.

6. Cause Proximal or Proximate Cause

Proximate Cause means the proximate cause of loss to ascertain whether the loss is
covered under the policy.

7. Warranties

There are certain conditions and promises in the insurance contract. They are called as
warranties. Warranty is a very important condition in the insurance contract, which to
be fulfilled by the insured.

8. Assignment and Nomination

Marine and life insurance policies can be assigned to someone without the prior
consent of the insurance company. However, fire and accident policies can be
assigned to women only with the prior consent of the insurer.

9. Return of Premium

Premium once pad shall not be refunded. In other words, the question of return the
premium shall not anise in all types of insurance including life insurance
 HISTORY OF INSURANCE SECTOR IN INDIA
The history of Insurance in India started with life insurance in 1818 when it was
conceived as a means to provide for English Windows. Interestingly in those days a
higher premium was charged for Indian lives than the non-Indian lives as Indian lives
were considered re risky for the coverage. The Bombay Mutual Life Insurance
Society started its business in 1870. It was the first company to charge same premium
for both Indium and non Indian lives. The Oriental Assurance Company was
established in 1880. The General Insurance Business in India, en the other hand, can
trace its roots to the Triton (Tital) Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the British. Till the end
of nineteenth century insurance business was almost entirely in the hands of overseas
companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912 Several frauds during
1920 and 1930s sullied insurance business in India.

By 1938 there were 176 insurance companies. The first comprehensive legislation
was introduced with the Insurance Act of 1938 that provided strict State Control over
insurance business. The insurance business grew at a faster pace after independence
Indian companies Strengthened their hold on this business but despite the growth that
was witnessed insurance remained an urban phenomenon.
 IMPORTANCE OF HRM IN INSURANCE SECTOR

Human resource is one of the natural resources of any country's economy. It is the
wealth of the country. In the context of insurance, human resource is of greater
importance. The deployment of human resources through proper and efficient
selection, training and development, is called Human Resource Management. The
success of any insurance company largely depends on efficient human resource
management, apart from operations marketing and sales, the HR department manages
all the efficient people working in operations and marketing divisions in any
organizations.

Need for HRD and Its Management in insurance sector

1. There are many changes in the insurance sector en account of changes in the
industry due to the entry of new insurance companies. Therefore, it has
become a necessity to recruit, train and deploy people at all level efficiently
for better performance and success. This is the basic function of HRD, which
includes the concept of HRM.
2. In view of the changes in the political scene in the recent past, sweeping
changes are expected to take place in the insurance industry. It is expected that
only a few insurance companies will remain after a series of amalgamations
and mergers, not only in the Indian assurance industry, but also at the
international level.
3. Emergence of new private sector insurance companies, competition and self-
regulation bus necessitated efficient Human Resources Management in
insurance companies. HRM is a continuous process, involving selection,
recruitment and training on an ongoing basis for the staff and their deployment
in the right place. The activity is called HR development.

EFFICIENCY IN INSURANCE SECTOR WITH HRM

1. The crucial factors behind successful insurance companies will be continuous

and sustained build up of skills, knowledge, education and attitudes among
people working in c the companies, particularly the frontline staff, working in
the branches.
 2. It is possible through professionalization which is an internal part of HRM.
The staff could be motivated and encouraged to practice professionals for their
personal growth and thus contribute to the organization's growth.
3. Building efficiency is therefore largely dependent on the best selection process
adopted by the HR department. There is imperative need to build up skills
within an organization for the successful managing of available HR.
4. Insurance companies have vast human resource specialized in multiple
disciplines like technology, law, sales, underwriting, administration, risk
management etc. The basic function of HR is to manage them efficiently for
continuous success. For building up better efficiency in insurance sector,
HRM have to follow the below.

Two functions

1. Emphasis on job description and job Assignment.

2. Response to challenges in future.

1. EMPHASIS ON JOB DESCRIPTION AND JOB ASSIGNMENT

One of the important functions of HR department is to ensure proper definition for

workers in the insurance companies.

The staff should know about the vacant positions and the skills required for those
particular jobs.

Accordingly, people should be recruited to that particular job.

The allotment of a job to a right person, who has the required skills, is called job
assignment. If this function is not properly performed by the HR department, people
in all departments will be in a chaotic situation. This will impair their performance
and subsequently customer service.

Improvement in performance and skills of existing employees can be achieved

through recruiting the right person for the right place. Thus, job description and job
assignment are parallel concept requiring attention.

2. RESPONSE TO THE CHALLENGES IN FUTURE

Insurance companies should chalk out a wide range of strategic responses to the
future challenges. They have to look into the structure procedures and processes of the
systems and make policies accordingly, to ensure necessary changes. It is the
foremost function of HRM Insurance companies have to convince their employees
that that a challenge is an opportunity to prove oneself.

Companies in India have to utilize this opportunity before the competition overtakes
them and people in banks have to respond immediately 1o the challenges.

This requires the HR department to work efficiently. Insurance companies are in the
service industry, where the raw material is HR.

HRM, therefore, emerges as a very basic and important element for strategic
response to the changes that are taking place in the insurance sector.

HR departments should take it seriously to formulate policies to meet these

challenges.

HRD is a critical management function. Each manager should have initiative,

awareness, co- ordination and facilitation to perform his role. This is critical function
of HRM.
 IRDAI (INSURANCE REGULATORY & DEVELOPMENT
AUTHORITY OF INDIA)

In order to provide better insurance coverage the citizens and also to get the flow of
long term resources for financing infrastructure, the Government of India opened the
insurance sector to foreign and Indian companies Insurance Regulatory and
Development Authority.

Act, 1999was passed. A statutory body is set up to monitor the working of insurance
companies. The Act contains 32 sections and three schedules .The schedules contain
amendments made in Instance Act, 1938, Life Insurance Corporation Act 1956 and
General Insurance Business (Nationalization) Act, 1972.

The Insurance Regulatory and Development Authority is a body corporate by the

name having perpetual succession and a common seal with power, subject to the
provisions of the Act, to acquire, hold and dispose of property both movable and
immovable and to contract and shall by the said name, sue or be sued.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

IRDA s a national agency of the Government of India based in Hyderabad. It was

formed by an act of Indian Parliament known as IRDA Act 1999, which was amended
in 3002 to incorporate some emerging requirements. Mission of IRDA as stated in the
act a " protect the interests of the policyholders to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith o
incidental Pa Insurance Regulatory & Development Authority.

The IRDA Act, 1999

The IRDA Act was passed in 1999, providing for the establishment of the IRDA as a
ten member body, with the Chairperson, and nine other members, of whom not more
than five will be whole time members. The IRDA is the authority to regulate the
insurance industry in India and has the power to issue registration certificates and
licenses lay down codes of conduct and monitor the performance of insurers and other
persons referred to in Insurance Act and to make regulations to carry out its purpose.

The IRDA is to be advised by the Insurance Advisory Committee, to consist of not

more than 25 members. This Committee is to be appointed by the IRDA and will
represent the interests of commerce. industry, transport, agriculture, consumer for a
surveyors agents, intermediaries organizations engaged in safety and loss prevention,
research bodies and employees associations in the Insurance sector. The IRDA Act,
also amended the Insurance Act, 1938 the Life Insurance Corporation Act, 1956 and
the General Insurance Business Nationalization Act, 1972. These amendments were
made to give effect to the new policy of allowing private insurance companies to
transact business in India.

POWERS OF IRDA

The following are the powers of IRDA:

1. All insurance companies have to register with IRDA compulsorily.

2. Companies can undertake only business.

3. The capital structure of the companies will be determined by IRDA

4. Companies have to deposit with RBI the amount stipulated by IRDA

5. Accounts and balance sheets of companies have to be submitted IRDA

6. Insurance companies have to appoint actuaries and they will also the liabilities of
the insurance companies and report the same to IRDA

7. Investment of assets will be prescribed by IRDA in the form of approved securities

8. The nature of general insurance business will be prescribed by IRDA

9. Statements of investment assets to be submitted to IRDA every financial year.

10. All insurance companies have to devote certain percentage of their home made
insurance for crops. This should cover organized sector including the economically
weaker sections.

11. The appointment of chief executive officer requires prior permission of the IRDA
12. All insurance agents obtain license from IRDA

13. IRDA has powers for levying penalty on companies which fall to comply with the
rules and regulations.

Composition of IRDA

One chairperson and not more than 9 members of whom not more than 5 would be
full time members and they are appointed by the government. Those who have
experience in life and general insurance, actuarial service, finance, economics etc, are
appointed.

DUTIES OF IRDA

1. Regulates insurance companies. The working of insurance companies will be

regulated in the following aspects

The persons to be employed

The nature of business,

Covering of risks,

Terms and agreements for covering risks etc, will be prescribed by IRDA

2. Promotes insurance companies corporate set-up is a must for establishing an

insurance company and they have to submit periodical reports to IRDA Different
kinds of policies and different types of insurance are also suggested by IRDA to these
insurance companies.

3. Ensures growth of insurance and reinsurance companies. Here, the promotion of

new is encouraged. Even banks are also permitted to promote insurance companies as
a subsidiary.

FUNCTIONS OF INDIA

1. Issuing certificate of registration.

2. Protesting the interest of policy holders.

3. Issuing license to agents.

4. Specifying code of conduct for surveyors and loss assessors.

5. Promoting efficiency in the insurance Business.

6. Undertaking inspection, conducting enquiries etc on insurance companies

7. Control and regulations of rates, terms and conditions by insurance company to

policy holder

8. Adjudication of disputes between insurance company and others in the insurance

Business

9. Fixing the percentage of insurance business to rural and social sector

INSURANCE OMBUDSMAN BY IRDA:

On the lines of Bank ombudsman, an insurance ombudsman was created by IRDA

.The main purpose of the creation of the ombudsman is to cover disputes arising
between the insured and the insurer. Any complaint made on insurance companies
will be settled by the insurance ombudsman. It is more a watch dog by which the
functioning of the insurance company will be disciplined.

Insurance Ombudsman is basically a consumer protection exercise .The insured need

not worry about their policy amount as any complaint lodged with the ombudsman
will have legal sanctity and even criminal action can be initiated against the erring
insurance company.

Thus, enough judiciary powers are given to insurance ombudsman by which speedy
element of cases connected with individual policy holder is possible.
 CHAPTER 4

DATA ANALYSIS

As it can be seen from the data collected and fro in the case studies that of
the insurance companies believe that investing in HRM is necessary in order to
strengthen the insurance sector. Investing in HRM practices allows companies to
strengthen their human resources. Human resources are one of the most important
resources in any Organization. Efficient management of human resources is necessary
for the success of an organization. Efficient HRM practices leads to employee
satisfaction. Employee's performance improves which benefits the entire organization.
Employees are motivated and they perform better. This will in turn lead to increase in
customer satisfaction and the organization will be able to increase its customer base.

We use the notion of analytical HRM 10 emphasize that the fundamental con of
the academic management discipline of HRM is not to propagate perceptions of best
practice in excellent companies' but, first of all, to identity and explain what happens
in practice. Analytical HRM privileges explanation over prescription .The primary
task of analytical HRM is to build theory and gather empirical data in order to account
for the way management actually behaves in organizing work and managing people
aces different jobs, workplaces, companies, industries, and societies.

We are not simply making an academic point here Education founded on an

analytical conception of HRM should help practitioners to understand relevant theory
and develop analytical skills which can be applied in their specific situation and that
do not leave them flat-footed when they move to a new environment. The weaknesses
of a de contextualized propagation of best practices were classically exposed by Legg
in her critique of the personnel management literature.
 FUNCTIONS OF HRM IN INSURANCE

HRM consist of several interrelated functions. These functions are common to all
organization.

1) PROMOTION

MEANING

A promotion is the advancement of an employee's rank or position in an

organizational hierarchy system. Promotion may be an employee's reward for good
performance i.e. positive appraisal. Before a company promotes an employee to a
particular position it ensures that the person is able to handle the added
responsibilities by screening the employee with interviews and tests and giving them
training or on-the-job experience. A promotion can involve advancement in terms of
designation, salary and benefits, and in some organizations the type of job activities
may change a great deal. The opposite of a promotion is a demotion. Many companies
and public service organizations, more senior positions have a different title an
analyst who is promoted becomes a "principal analyst"; an economist becomes a
"senior economists or an associate professor becomes a "full professor". The amount
of salary increase associated with a promotion varies a great deal between industries
and sectors, and depending on what parts of the hierarchical ladder an employee is
moving between. In some industries or sectors, there may be only a modest increase
in salary for a promotion, in other fields; a promotion may substantially increase an
employee's salary.
BASES OF PROMOTION

1. Promotion by Seniority

Seniority means length of recognized service in an organization. If seniority is

adopted as the basis of promotion, the senior most people in the lower grade shall be
promoted as and when there is an opening in the higher position. The promotion will
be made as a matter of Course. Seniority on the basis of length of recognized service
in the organization is decided by the organization and every employee knows his
place in the promotion list. There will be no chance of favourisms or dispute
regarding promotion. Merit is not considered in promotions Seniority is widely
recognized as the basis of promotion in almost all types of organizations particularly
in organization where trade unions are strong. Trade unions generally emphasize on
seniority as the basis of promotion.

Merits

 Simple and objective: It is simple, objective and impartial. Here the selection
is not by the management but by the system itself and that to in natural and
impartial manner.
 Widely acceptable: it is widely acceptable to all the employees. It is also
acceptable to trade unions.
 Job security and reduction in labour turnover: It creates job security to the
employee and it helps to reduce labour turnover to some extent.
 Increase brand awareness: With access to various media including print and
digital platforms it's easier than ever to get your promotions out into the public
eye. Information about your brand and company should be consistent
throughout any promotion, so that it will naturally build on your brand
awareness.
 Increase customer traffic: Promoting a new offer or a new product is a key
way to drive traffic to your site. Your target market needs to see new content
consistently to keep them interested and engaged.

Demerits
  No encouragement to learn and grow: Seniority does not provide any
incentives to an employee to learn, to improve and to develop. Employees
know that as and when a vacancy occurs, the senior most employees will be
promoted.

Whether, during the period, he has developed his abilities or not. So absence of
competition will not promote any encouragement for new learning.

 Affects morale of meritorious worker: The employees whose performance is

better than senior one will not wait till promotion of senior person. The
meritorious worker will try to find out new job because of no promotion
opportunities in the organization. As a result organization will suffer due to
the loss of such capable men. Further, it would make it difficult to attract
capable new personnel from outside.
 Leads to labour turnover: Due to promotion by seniority, capable and
deserving employees leave the job as quick promotions are not available to
them. Thus, the rate of labour turnover increases due to promotion by
seniority.
 Increased price sensitivity: Consumers wait for the promotion deals to be
announced and then purchase the product. This is true even for brands where
brand loyalty exists. Customers wait and time their purchases to coincide with
promotional offers on their preferred brands.

2. Promotion by Merit –

Merit means ability to work. If merit is adopted as the basis of promotion, the most
able person in the lower grade, no matter he is junior most in the company, shall be
promoted. It encourages all employees to improve their efficiency. Management
personnel's generally prefer merit as the basis of promotion Merit may be determined
by job performance and analysis of employee potential for development through
written or oral examinations or personal interviews or their records of performance.
Thus 'ability ignores the value of experience. Over and above the two formal bases of
promotion seniority and merit, there may be several other informal bases such as
general aptitude to work or loyalty to organization or quality and quantity of the work
performed but seniority and merit and regarded as the formal bases of promotion.

Advantages
  Just and fair method, this method is just and fair to employers and workers
because promotion is given to capable and deserving person which is due to
dedication to wards work.
 Raises morale of worker, It improves the morale of capable employees as
their potentials are appraised and which increases their morale.
 Encouragement to worker to take interest in the work, It gives encouragement
to worker to learn, to grow and to acquire new qualifications and qualities to
get promotion.
 Since efficiency and talents are rewarded, it encourages the employees to
increase their knowledge in maintaining a high level of productivity.
 It helps in putting the most productive and competent person for specialized
jobs.

Disadvantages

 Difficult and complicated method, adequate service records of all workers

need to he maintained for the purpose of selection of employees for
promotion. So it is even difficult to record merits of all employees precisely
and properly.
 2 Lacks wide acceptability Promotion by merit is normally not acceptable by
trade unions and workers.
 It may result in partiality, nepotism, favoritism, asterism, etc. by the
management.
 Senior employees in the organization may become unsatisfied and they may
indulge in certain activities that may lead to industrial unrest, strikes,
lockouts, etc.
 Merit as a basis of promotion is normally opposed by workers and their
representatives. They give more importance to the seniority factor.

ESSENTIALS OF PROMOTION POLICY

A sound promotion policy should be based on the following principles:

i. The promotion policy should be in writing and must be understood by

employees to avoid any suspicion in the minds of employees.
 ii. The promotion policy should lay downs what percentages of vacancies in
higher posts are to be filled up by promotion, and it should be followed
strictly. It is better to incorporate a statement of management intention that
higher paid and better jobs I will be filled by promotion from within if
possible rather than by timing form outside. If it is necessary to go outside to
fill specific skilled professional jobs, these should be notified in advance.
iii. The promotion policy should mention the basis of promotion-seniority or
merit. A sound policy should be based on both the considerations i.e., seniority
and ability. Primarily it should emphasis the merit giving due weight age to
seniority. If two persons are equal in merit and in seniority, seniority should be
the basis of promotion.
iv. Job analysis decides the position of the jobs and their relationship to other
positions. This should be charted to provide clear recognition of the natural
movement from one job another. Positions maybe adjusted and arranged, so
that one position prepares workers for another and natural course of
advancement throughout the organization, or within each division or
department may be provided. Employees should be fully aware of the plan so
that they may prepare themselves for higher position.
v. Promotion programmes should be closely allied to training programme, which
enables the employees to improve themselves for promotions.
vi. A scientific procedure for evaluating employee performance should be
followed. This should be recorded periodically to justify the promotion or
super session. The assessment of employee and confidential reporting should
be objective so that every employee has a faith in the promotion policy and is
induced for better performance of work to get promotion.
vii. The supervisor or the immediate boss should recommend the promotion which
is subject to approval by his immediate.
viii. The promotion policy should contain a provision for the challenge of a
particular promotion by the employee or union within the limits of the
promotion policy to ensure fairness in a management decision.
ix. A vacancy or a would-be vacancy should be notified to employees in advance
so that invested employees may apply within a specified period. If possible,
the candidate should be selected before the job actually become vacant.
2) TRANSFER

Definition

Edwin B. Flippo defines the transfer as 'a change in job where the new job in
substantially be equal to the old in terms of pay, status and responsibilities.’

Meaning

Transfer is the movement of an employee from one job to another without involving
any! Substantial change in this duties, responsibilities, required skill status and
compensation Here substantially, the equal' means that the general nature of duties
and responsibilities remains the same though there may a change in their specific
nature. It may also involve change in pay. Transfer is the horizontal dynamism of
employees from one places of work 1o another. According to Date Yoder "A transfer
involves the shifting of an employee form any job to another without special reference
to changing responsibility or compensations." He further explains that every type of
movement from one job to another i.e., promotion, demotion, change in shifts etc. is
'transfer. According to him, Transfer may involve promotion, demotion for no change
in status and responsibility.

PRINCIPLES OF TRANSFER

1. Transfers should be made only when absolute necessary. The frequency of

transfers and the minimum period between transfers need to be decided clearly
and made known to J all employees. This brings clarity and definiteness to
transfer.
2. The basis of transfer should be property decided.
3. Transfer should not be made as a punishment or as revenge on an employee or
simply to trouble an employee and his family members.
4. Transfer should be made after taking concerned employee into confidence and
after explaining how transfer is in the best interest of the organization and
employee.
5. A request for transfer by an employee on sound personal grounds (e.g. family
problems, health, schooling of children etc) should be considered
sympathetically and granted promptly.
 6. Management should prepare a sound transfer policy for along period. It should
be given wide publicity for the information of employees. The interests of the
organization should not be forgotten while framing a policy of transfers.

On the basis of Purpose of Transfer / Types of Transfer

1. Production Transfers

When a particular department or job is faced with the pressure of work, its strength
may be supplemented through transfer from other departments. Such transfers are
generally mad where one department is overstaffed and the other is short of
manpower. It prevents lay-off from the over-staffed department in the organization
and develops a confidence in employees.

2. Replacement Transfer

A replacement transfer is the transfer of a senior employee to replace the junior]

employee or a new employee, when the latter is laid off or shifted to other job.
Sometimes it is temporary arrangement to make use of the services of the senior
personnel.

3. Versatility Transfer

The main purpose of this type of transfer is to increase versatility of the employee
forms one job to another and one department to another. It aims at giving training to
the employees of various jobs of similar nature having different operations. It helps
the employees to get prepared for further promotion and also helps the employer in
developing the effective man power prepared to handle the higher openings.

4. Shift Transfers

When the unit runs in shifts employees are transferred from one shift to another on
similar In some undertaking, where shifts are operated regularly employees may be
recruited permanently for the shift but in some cases they are rotated from of one shift
to another as matter of practice, for many workers dislike second or third shift
assignment, because it interferes with their social or family engagements.

5. Curative or Remedial Transfers

These transfers are generally made to rectify the situation caused by faulty selection
or placement procedures. For example, if an interim placement is made, the employee
may he transferred to a suitable jobs and when there is a vacancy. This helps the
employer to adjust the employee on the suitable job and also provides an opportunity
to the employee to adjust himself to a suitable job. Sometimes, transfers are mad as a
remedial measure to avoid the unwarranted situation such as, tussle between
supervisor and his subordinate.

6. Precautionary Transfers

Such transfers are made as a precaution to the misuse of office or misappropriation of

funds by the employee. In some undertakings, it is mentioned in the transfer policy of
the organization that an employee cannot stay at one place for more than 3 yrs. or so.

7. Personal Transfers

Such transfers are made primarily to meet the personal requests or needs of the
employees. For example, if a worker is not satisfied with his present assignment or he
wants a change in job or place, he may be allowed to move from one job to another.
Health may also be consideration as one of the reason for such transfers.

Transfer is used as a technique in training programmes. Transfers are generally made

of get the employees trained for different positions and jobs. Promotion is a part of
personnel programmes, a sound promotion policy help die employees to increase their
efficiency.

3) RECRUITMENT
MEANING

Recruitment is distinct from Employment and Selection Once the required number
and kind of human resources are determined, the management has to find the places
where the acquired human resources will be available and also find the means of
acting the wards the organization before selecting suitable candidates for jobs. All this
process is generally known as recruitment.

Recruitment is defined as "a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an efficient
workforce Recruitment is a "linking function -joining together those with jobs to fill
and those seeking jobs. It is a joining process' in that it tries to bring together job
seekers and employer with a view to encourage the former to apply for a job with the
latter.

According to Edwin B. Flippo, "recruitment is the process of searching the candidates

for employment and stimulating them to apply for jobs in the organization".

A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted.
The result is a pool of applications from which new employees are selected.

Factors Affecting Recruitment

The external factors which affecting recruitment are the force and can be controlled
by the organisation. The major external forces are:

1. Supply & Demand

The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded
by the company, then the company will have to depend upon internal sources by
providing them special training and development programs.

2. Labour Market

Employment conditions in the community where the organization is located will

influence the recruiting efforts of the organization. If there is surplus of manpower at
the time of recruitment, even informal attempts at the time of recruiting like notice
boards display of the requisition or announcement in the meeting etc will attract more
than enough applicant.

3. Image / Goodwill

Image of the employer can work as a potential constraint for recruitment. An

organization with positive image and goodwill as an employer finds it easier to attract
and retain employees than an organization with negative image. Image of a company
is based on what organization does and affected by industry. For example finance was
taken up by esher MASs when many finance companies were coming up.

4. Political Social Legal Environment

Various government regulations prohibiting discrimination in hiring and employment

have direct impact on recruitment practices. For example, Government of India has
introduced legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped ete.

5. Competitors

The recruitment policies of the competitors also effect the recruitment function of the
organisations, To face the competition, many a times the organisations have to change
their recruitment policies according to the policies being followed by the competitors.
INTERNAL FACTORS

The internal factors or forces which affecting recruitment and can be controlled by the
organisation are:

1. Recruitment Policy

The recruitment policy of an organisation specifies the objectives of recruitment and

provides a framework for implementation of recruitment programme. It may involve
organizational system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with best qualified people.

2. Human Resource Planning

Effective human resource planning helps in determining the gaps present in the
existing manpower of the organization. It also helps in determining the number of
employees to be recruited and what qualification they must possess.

3. Size of the Firm

The size of the firm is an important factor in the recruitment process If the
organization is planning to increase its operations and expand its business, it will
think of hing mee personnel, which will handle its operations.

4. Cost

Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization
for each candidate.

5. Growth & Expansion

Organization will employ or think of employing more personnel if it is expanding it's

operations.

SOURCE OF RECRUITMENT

The following are the most commonly used methods of recruiting people :

1. Internal Source
 1. Promotions and Transfers

This is a method of filling vacancies from within through transfers and promotions. A
transfer is a lateral movement within the same grade, from one job to another. It may
lead to changes in duties and responsibilities, working conditions, etc.. but not
necessarily salary. Promotion, on the other hand, involves movement of employee
from a lower level position to a higher level position accompanied by (usually
changes in duties, responsibilities, status and value.

2. Job Posting

Job posting is another way of hiring people from within. In this method, the
organisation publishes job opening on bulletin boards,(electronic method and similar
outlets.

3. Employee Referrals

Employee referral means using personal contacts to locate job opportunities. It is a

commendation from a current employee regarding a job applicant. The logic behind
employee referral is that "it takes one to know one". Employees working in the
organization, in this case. are encouraged to recommend the names of their friends
working in other organizations for a possible vacancy in the near future.

4. Retired and Retrenched Employees

Retired and Retrenched employees may also be recruited once again in case of
shortage of tied personnel or increase in load of work. Recruitment of such people
saves time and acts of the organisations as the people are already aware of the
organisational culture and the policies and procedures.

Advantages of Internal Recruitment

1. It is less costly.
2. Organizations have better knowledge about the internal candidate.
3. Enhancement of employee morale and motivation.
4. Increased morale and retention.
5. Continuity of operations.

Disadvantage of Internal Recruitment

 1. It perpetuates the old concept.
2. It abets raiding.
3. Politics plays greater role.
4. Morale problem for those not promoted.
5. Potential animosity among the ranks.
6. Lack of diversity.

B. External Source

1. Campus Recruitment

It is a method of recruiting by visiting and participating in college campuses and their

placement centres. Here the recruiters visit reputed educational institutions such as
TITS, IMs, colleges and universities with a view to pick up job aspirants having
requisite technical or professional skills. Job seekers are provided information about
the jobs and the recruiters, in tum, get a snapshot of job seekers through constant
interchange of information with respective institutions.

Guidelines for campus recruiting companies using college campuses as recruitment

ource should consider the following guidelines:

 Identify the potential candidates early .

 Employ various means to attract candidates.
 Use effective recruitment material.
 Offer training to campus interviews.
 Come out with a competitive offer.

Indirect Methods

1. Advertisements

These include advertisements in newspapers; trade, professional and technical

journals, radio and television, etc. in recent times, this medium has become just as
colourful, lively and imaginative as consumer advertising. The ads generally give a
brief outline of the job responsibilities, compensation package, prospects in
organizations, etc. To apply for advertised vacancies let's briefly examine the wide
variety of alternatives available to a company - as far as ads are concerned.

2. Newspaper Advertisement

Here it is easy to place job ads without much of a lead time. It has flexibility in terms
of information and can conveniently target a specific geographic location.

3. Television and Radio Advertisement

These ads are more likely to each individual who are not actively seeking
employment they are more likely to stand out distinctly, they help the organization to
target the ee more selectively and they offer considerable scope for designing and
creatively eever, these ads are expensive.

4. Pacement Agencies

Seal private consultancy firms perform recruitment functions on behalf of client to by

charging a fee. These agencies are particularly suitable for recruitment of executives
and specialists. It is also known as RPO (Recruitment Process Outsourcing).

5. Employment Exchanges

Government establishes public employment exchange? throughout the country. These

changes provide job information to job seekers and help employers in identifying
suitable candidates.

6. Labour Contractors

Manual workers can be recruited through contractors who maintain close contacts
with the of such workers. This source is used to recruit labour for construction jobs.

Advantages of External Recruitment

1. Benefits of new skill, new talent and new experience to organization

2. Compliance with reservation policy becomes easy.

3. Scope for resentment, jealousies and heartburn are avoided.

4. Wider choice
5. Qualified personnel

2. Poaching / Raiding

“Buying talent” (rather than developing it) is the latest mantra being followed by the
ons today. Poaching means employing a competent and experienced person ait
working with another reputed company in the same or different industry, the station
might be a competitor in the industry.

3.E- Recruitment

The buzzword and the latest trends in recruitment is thc "E-Recruitment. Also known
as Online recruitment", it is the use of technology or the web based tools to assist the
recruitment processes, The tool can be either a job website like naukri com, the
organisation's corporate web site or its own intranet. Many big and small
organizations are sing Internet as a source of recruitment. They advertise job
vacancies through worldwide wch The job seekers send their applications or
curriculum vitae (CV) through an e-mail using the Intenet.

4.Online Recruitment Technique

Job sites provide 24 x 7 access to the database of the resumes to the employees
alitating the just-in-time hiring by the organisations. Also, the jobs can be posted on
the site almost immediately and is also cheaper than advertising in the employment
newspapers. Sometimes companies can get valuable references through the "passers-
by" Applicants. Online recruitment helps the organisations to automate the
recruitment process. use their time and costs on recruitments.

4. SELECTION
MEANING & DEFINITION

The size of the labour market, the image of the company, the place of posting, the
nature or job, the compensation package and a host of other factors influence the
manner of aspirants are likely to respond to the recruiting efforts of the company.
Through the process of recruitment the company tries to locate prospective employees
and encourages them to apply for vacancies at various levels Recruiting, thus.
provides a pod of for selection.

“To select mean to choose. Selection is the process of picking individuals who
have relevant qualifications to fill jobs in an organisation The basic purpose is to
choose the individual who can most successfully perform the job From the pool of
qualified candidates”.

Definition of Selection

According to Thomas. H. Stone. “Selection is the process of differentiating between

planets in order to identify with a greater likelihood of success in a job”.

STANDARD PROCESS OF SELECTION

Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next one. The time and emphasis place on each
step will definitely vary from one organisation to another and indeed, from job to job
within the same organisation. The sequence of steps may also vary from job to job
and organisation to organisation.

1. Reception

A company is known by the people it employs. In order to attract people with talents,
skills and experience a company has to create a favourable impression on the
applicants nght from the stage of reception. Whoever meets the applicant initially
should be tactful and able to extend help in a friendly and courteous way.
Employment possibilities be pented honestly and clearly. If no jobs are available at
that point of time, the applicant y be asked to call back the personnel department after
some time.

2. Screening Interview
A preliminary interview is generally planned by large organisations to cut the cost of
election by allowing only eligible candidates to go through the further stages in
selection A junior executive from the Personnel Department may elicit responses
from the applicants can important items determining the suitability of an applicant for
a job sach as, education, experience, pay expectations, aptitude, location, choice etc.

3. Application Blank

Application blank or form is one of the most common methods used to collect
information various aspects of the applicants' academic, social, demographic, work
related background and references. It is a brief history sheet of employee's
background usually containing the following things:

i. Personal data (address, sex, telephone number)

ii. Marital data
iii. Educational data
iv. Employment Experience
4. Selection Testing

Over the years employment tests have not only gained importance but also a certain
amount of inevitability in employment decisions. Since they try to objectively
determine how well an applicant meets the job requirement, most companies do not
hesitate to invest their time and money in selection testing in a big way. Some of the
commonly used employment tests are:

i. Intelligence Tests : These are mental ability tests. They measure the
incumbent's learning ability and the ability to understand instructions and
make judgements.
ii. Aptitude Test: Aptitude test measure an individual's potential to leam certain
skille clerical.
iii. Personality Test: Of all test required for selection the personality tests have
generated a lot of heat and controversy. Mechanical, Mathematical etc.
iv. Achievement Tests: These are designed to measure what the applicant can do
on the job currently, i.e whether the test actually knows what he or she claims
to know.
 v. Simulation Tests : Simulation exercise is a tests which duplicate many of the
activities and problems an employee faces while at work.
vi. Graphology Test: Graphology involves using a trained evaluator to examine
the lines, loops, hooks, stokes, curves and flourishes in a person's handwriting
to assess the person.
vii. Polygraph (Lie-Detector) Tests : The polygraph records physical changes in
the body as the tests subject answers a series of questions. It records
fluctuations in respiration, blood pressure and perspiration on a moving roll of
graph paper. The polygraph operator forms a judgement as to whether the
subject's response was truthful or deceptive by examining the biological
movements recorded on the paper.
5. Selection Interview

Interview is the oral examination of candidates for employment. This is the most
essential step in the selection process. In this step the interviewer matches the
information obtained about the candidates through various means to the job
requirements and to the information obtained through his own observations during the
interview, Interview gives the recruiter an opportunity:

 To size up the candidate personally;

 To ask question that are not covered in the test;
 To make judgements on candidates enthusiasm and intelligence;
 To assess subjective aspects of the candidate facial expressions, appearance,
nervousness and so forth;
 To give facts to the candidates regarding the promote goodwill towards the
company.
6. Medical Examination

After the selection decision and before the job offer is made, the candidate is required
to krgo a medical fitness test. A job offer is often contingent upon the candidate being
flared fit after the physical examination. Certain jobs require physical qualities like
clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions,
clear one, etc.

7. Reference Checks
Once the interview and medical examination of the candidate is over, the personnel
department will engage in checking references. Candidates are required to give the
names references in their application forms. These references may be from the
ndividuals who are familiar with the candidate's academic achievements or from the
aplicant's previous employer, who is well versed with the applicant's job performance
and sometimes from the co-workers.

8. Hiring Decision

The line manager has to make the final decision now. whether to select or reject a
candidate after soliciting the required information through different techniques
discussed carlier. The line manager has to take adequate care in taking the final
decision because of cennomie, behavioural and social implications of the selection
decisions. A careless decision of rejecting a candidate would impair the morale of the
people and they suspect the selection procedure and the very basis of selection in a
particular organization. A true understanding between line managers and personnel
managers should be established so as facilitate good selection decisions.

TYPES OF INTERVIEWS

Interviews may be classified into following categories:

1. Patterned or Structured Interview

This is the most common method of interview. It is based on the assumption that to be
most effective every pertinent detail should be worked out in advance Questions
would be asked in a particular order, with very little deviation. The time to be allowed
to each candidate and information to be sought are predecided. Such interviews are
also called standardized interviews, for they are pre-planned to a high degree of
accuracy and precision. Such interview is also known as directed or guided interview.
Patterned interview helps to minimize personal bias and prejudice and provides
uniformity and consistency. It allows for a systematic coverage of the required
information. But such an interview does not allow deep probing into the candidate's
mind.

2. Non-Directed or Unstructured Interview

This type of interview is free and is relatively non-planned as to format. The interview
is mot directed by questions or comments as to what the candidate should be asked.
Non directed interview is a more flexible approach and therefore the candidate feels
more at ease. Generally, the candidate is encouraged to express himself on a variety of
subjects, on his expectations and motivations, background and upbringing, interests
etc. The interviews Took for traits of character and nature of his aspirations and his
potentials, strengths and weaknesses. Thus, a better assessment of the candidate's
personality becomes possible. But unless the interviewer is very competent. the
discussion may lose its direction and may become a rambling session with much
wastage of time and effort.

3. Informal Interview

Such interview may take place anywhere It is nOt planned and is used when the staff
is required urgently. A friend or relative of the employer may introduce the candidate
to the employer, who asks a few basic questions like name, education, experience, etc.

4. Formal Interview

This type of interview is preplanned and is held in a formal atmosphere All the
formalities and procedures eg the venue, the time, the panel of interviewers, and the
questions to be asked are decided in advance.

5. Depth Interview

It is a semi structured approach where in details concerning one key area are sought. It
is designed to intensively examine the candidate's proficiency in his area of special
interest. The purpose is to get a true picture of the candidate through deep probing
into his mind. mis type of interview requires a mature understanding of human
behaviour on the part of the interviewer.

6. Group Interview

In this type of interview. groups rather than individuals are interviewed. Generally, a
topic for discussion is given to the group. The applicants enter into group discussions,
knowing that the interview is a test, but do not know which qualities are being
measured or tested. The candidates in the group are carefully watched as to who takes
a lead in the discussion. who tries influencing others, who summarises and clarifies
issues and who speaks effectively. In this type of interview, the emphasis is on the
analysis of the interviewers impressions from discussions rather than a factual
information. Such interview is based on the assumption that behaviour displayed in a
group situation is related to potential success in the job.

7. Panel Interview

Such interview is conducted by a group of interviewers. It seeks to pool the collective

wisdom and judgement of several interviews. Questions are asked in tum or at
random.

8. Individual Interview

This is also called as one to one interview, It is a face to face interaction between the
reviewer and the candidate. It is a two-way communication and there should be
purposeful exchange of ideas

Types of Psychological Test

The tests can broadly be classified as follows:

Test

Aptitude test Achievement Test Personality Test

Interest test

Intelligence Test Job Knowledge Test Objective Test

Mechanical Test Work Sample Test Project Test

Psychomotor Test Situation Test

1. Aptitude Tests

Such tests are also known as potential ability tests. These tests enable to find out
whether a candidate, if selected would be suitable for a job which may be managerial,
clerical or technical.
These tests help to detect positive points and negative points in a persons sensory or
intellectual ability. They focus attention on a particular type of talent such as learning
or reasoning in respect of a particular filed of work.

Forms of Aptitude Tests:

a) Mental or Intelligence Tests : They measure the overall intellectual ability of

a person and enables to know whether the person has the mental ability to deal
with certain problems.
b) Mechanical Aptitude Tests : They measure the ability of a person to learn a
particular type of mechanical work. These tests helps to measure specialized
technical knowledge and problem solving abilities of the candidate. They are
useful in selection of mechanics, maintenance workers, etc.
c) Psychomotor or Skills Tests : They are those tests which measure a person's
ability to do a specific job. Such tests are conducted in respect of semi-skilled
and repetitive jobs such as packing, testing and inspection, etc.

2. Achievement Tests

These tests are also called as Proficiency Tests. These tests determine the skill or-
knowledge already acquired through training and on the job experience. Achievement
rests are of two types:

a) Job Knowledge Test: These Tests are known as trade tests that can be both
oral and written. Trade Tests are used to judge proficiency in typing,
shorthand and in operating calculating, adding machines and so on. Such tests
are used in the selection of typists, stenographers, officers, workers, sales
person etc.
b) Work Sample Test: In these tests, a candidate is given a piece of work that is
to be judged that how efficiency he does it. For example, a typist test provides
the material to be typed and notes the time taken and the mistakes committed.

3. Personality Tests
It is conducted judge maturity, social or interpersonal skills, behaviour under stress
and ete This set is very much Essential incase of selection of sales force, public ana
alt, etc.. where personality plays an important role. Personality Tests are of e types:

a) Objective Test: These tests measure neurotic tendencies self-sufficiency,

dominance submission and self confidence. These traits scored objectively.
b) Protective Test: This set requires interpretation of problems or situations.
For cuample, a photograph or a picture can be shown to the candidates and
they are asked to give their views and opinions about the picture.
c) Situation Test : This sets measure of a candidate's reaction when placed
in a peculiar situation, his ability to undergo stress & his demonstration of
ingenuity under pressure. These usually relate to a leaderless group
situation, in which some problems are posed to a group and its members
are asked to reach some conclusions without the help of a leader.

4. Interest Tests

This test is conducted to find out likes and dislikes of candidates towards occupations,
wobbles, etc. Such test indicate which occupations are more in line with a persons
interest. Such test also enable the company to provide vocational guidance to the
selected candidates and even to the existing employees.

5. PLACEMENT

It means assigning suitable jobs to selected candidates so as to mitch employees

qualification with job requirement.

Placement is a process of assigning a specific job to cach of the selected candidates It

involves assigning a specific rank and responsibility to an individual. It implies
matching the requirements of a job with the qualifications of the candidate.

The significance of placement are as follows: -

1) It improves employee morale.

2) It helps in reducing employee turnover.
3) It helps in reducing absenteeism.
4) It helps in reducing accident rates.
 5) It avonds mifit between the candidate and the job.
6) It helps the candidate to work as per the predetermined objectives of the
organization.

6. INDUCTION

It involves familiarizing the new employees with company, the work environment and
existing employees so that the new people feel at home. Once an employee is selected
and placed on an appropriate job, the process of familiarizing him with the job and the
organization is known as induction.

Induction is the process of receiving and welcoming an employee when he first joins
the company and giving him basic information he needs to settle down quickly and
happily and stars work.

Induction is designed to achieve following objectives: -

1) To give new comer necessary information.

2) To build new employee confidence in the organization.
3) It helps in reducing labor turnover and absenteeism.
4) It reduces confusion and develops healthy relations in the organization.
5) To ensure that the new comer do not form false impression and negative
attitude towards the organization.
6) To develop among the new comer a sense of belonging and loyalty to the
organization.
7) To help the new comer to overcome his shyness and overcome his shyness
nervousness in meeting new people in a new environment.
The advantages of formal induction are:-

1) Induction helps to build up a two-way channel of communication between

management and workers.
2) Proper induction facilitates informal relation and team work among employee.
3) Effective induction helps to integrate the new employee into the organization
and to develop a sense of belonging.
4) Induction helps to develop good relation.
5) A formal induction programme proves that the company is taking interest in
getting him off to good star.
6) Proper induction reduces employee grievances, absenteeism and labor
turnover.
7) Induction is helpful in supplying information concening the organization, the
job and employee welfare facilities.

A formal induction programme should provide following information:

1) Brief history and operations of the company .

2) The company's organization structure.
3) Policies and procedure of the company.
4) Products and services of the company.
5) Location of department and employee facilities.
6) Safety measures.
7) Grievances procedures.
8) Benefits and servic of employee.
9) Standing orders and disciplinary procedures.
10) Opportunities for training, promotions, transfer etc.
11) Suggestion schemes.
12) Rules and regulations.

7. TRANING
It is the process by which employees learn knowledge skills and attitudes to further
organizational and personal goals. In general, education is mind preparation and is
carried out remote from the actual work area training is the systematic development of
the strude, knowledge, skill pattern required by a person to perform a given task or
job adequately and development is the growth of the individual in terms of ability
understanding and awareness.

Within an organization all three are necessary in order to:

 Develop workers to undertake higher-grade tasks:

 Provide the conventional training of new and young workers (e.g. as
apprentices, clerks, etc.);
 Raise efficiency and standards of performance
 Meet legislative requirements (eg, health and safety): Inform people (induction
training, pre-retirement courses, etc.):
 Training and development managers and specialists

create, procure, and conduct training and development programs for employees
Increasingly, executives recognize that training offers away of developing skills,
enhancing productivity and quality of work, and building worker loyalty Enhancing
employee skills can increase individual and organizational performance and help to
achieve business results. Increasingly, executives realize that developing the skills and
knowledge of its workforce is a business imperative that can give them a competitive
edge in recruiting and retaining high quality employees and can lead to business
growth Other factors involved in determining whether training is needed include the
complexity ar the work environment, the rapid pace of organizational and
technological change, and The growing member of jobs in fields that constantly
generate new knowledge and, thus, eguire new skills. In addition, advances in
learning theory have provided insights into how people learn and how training can be
organized most effectively.

Training managers

oversee development of training programs, contracts, and budgets. They may perform
needs assessments of the types of training needed, determine the best means of
delivering training. and create the content. They may provide employee training in a
classroom, computer laboratory, or onsite production facility, or through a training
film. Web video on-demand, or self-paced or self-guided instructional guides. For
computer-assisted or recorded training, trainers ensure that cameras, microphones,
and other necessary technology plat form are functioning properly and that individual
computers or other learning devices are configured for training purposes. They also
have the responsibility for the entire learning process, and it environment to ensure
that the course meets its objectives and is measured and evaluated to understand how
learning impacts performance.

Training specialist plan, organize, and direct a wide range of training activities.
Trainers consult with training managers and employee supervisors to develop
performance improvement measures, conduct orientation sessions, and arrange on-
the-job training for new employees. They help employees maintain and improve their
job skills and prepare for jobs requiring greater skill. They work with supervisors to
improve their interpersonal skills and to deal effectively with employees. They may
set up individualized training plans to strengthen employees existing skills or teach
new ones. Training specialists also may set up leadership or executive development
programs for employees who aspire to move up in the organization. These programs
are designed to develop or "groom" leaders to replace those leaving the organization
and as part of a corporate succession plan Trainers also lead programs to assist
employees with job transitions as a result of mergers or consolidation, as well as
retraining programs to develop new skills that may result from technological changes
in the work place. In government-supported job-training programs, training specialists
serveis case managers and provide has job skills to peepas participants Ao function in
the labour force. They assess the training needs of clients and de them through the
most appropriate training After training, clients may either be referred to employer
relations representatives or receive job placement assistance in te process of
developing managerial talent through programs.

8. DEVELOPMENT

It covers not only those activities, which improve job performance, but also those
which bring about growth of the personality: help individuals in the progress towards
maturity and actualization of their potential capacities so that they become not only
good employees but better men and woman in organisational ternis, it is intended to
equip persons to earn promotion and hold greater responsibility. Training a person for
higher and bigger job is development. And this may well include not only imparting
specific skills and knowledge but also inculcating certain personality and mental
attitudes.

There is more emphasis on choosing management development methods that are more
organizationally relevant and effective that they have been in the past. Various
techniques of management development include:

(a) Management on-the-job training

(b) Off the job training

Managerial on-the-job training methods include job-rotation, coaching understudy
approach

and action learning.

Job rotation means moving management trainees from department to broaden their
understanding of all part of the business and to test their abilities.

A manager may spend several months in each department. The person may just an
observer in each department but more commonly gets fully involved in its operation

Coaching/understudy approach: Here the person workers directly with the senior
manager or with the person he or she is to replace, the latter is responsible for the
executive of certain responsibilities, giving the trainee a chance to learn the job.

Action leaming programmers give managers and others released time to work full
time on projects, analysis and solving problems in departments other than their own
trainees meet periodically in four or five person project groups to discuss their
findings. Several trainees may work together as a project group or compare notes and
discuss cach other's projects.

Off the job training and development techniques

The off the job development techniques for managers include case study method,
management

games, role playing etc.

Case Study method: -

Case study method presents a train with a written description of an organisational

problem The person then analyzes the case, diagnoses the problem and presents his or
her findings and solutions in discussion with other trainees

Management Games: -

With management gates trainees are divided in to give or six persons group, each of
which competes with the others in a stimulated marketplace Management and can be
good development tools. People can best by getting involved, and the games can be
Useful for gaining such involvement. They help trainee develop their problem solving
skills, as well as to focus attention on planning rather than just putting out fires The
group also usually elects their own officers and organize themselves, they can thus
develop leadership skills and Taster cooperation and team work.

Roll Playing –

The aim of role playing is to create a realistic situation and then have the trainees
assume the role of specific persons in that situation When combined with the general
instruction and other roles for the exercise, role playing can trigger spirited
discussions among the role player trainees. The aim is to develop trainee's skills in
areas like leadership and delegation.

9. MOTIVATION

It is the force which in tupates an employee to work in a proper direction.

To retain pood staff and te encourage them to the of the best while at work requires
attention to the financial and pwychological and even plysiologicalrewands offered by
the organization as a continuous exercise.

Basic financial rewants and conditions of service (eg working hours per weck) are
determinant externally (by tational batgaining or government minimum wage
legulation) in many occupations butas much as 50 per cent of the gross pay of manual
workers is often the result of local negutationwand detaila (eg which particular luas
shall be worked) of conditions of service ate often more important than the basics.
Hence there s scope for financial and other motivations to be used at local levels.

 The motivation function e ef the mest inportant, yet probably the least derstied
Act of the HRM process Why? Becae human behavior is complex and defeat
undentand. Trying to figure out what motivates various in employees han long
been a concern of behavioral scientists. However, research has given some
improtant insights into employees motivation.
 First of all, one must be to think of motivation as a multifaceted process - one
that has individual, managrial, and organizational implications. Motivation not
just what the employee exhibits, but also a corpilation of environmental issues
surrounding the job. It has been proposed that performance in an organistation
is a function of two factors, ability and willingness to do the job. Thus, from a
performance perspective, employees need to have the appropriate skills and
abilities to adequately do the job. This should have been accomplished in the
first two phases of HRM, by correctly defining the requirments of the job,
matching applicants to those requirements and training the new employee on
how to do the job.
 But there is also another concern, which is the job design itself. If jobs are
poorly designed, poorly laid out, or improperly described, employees will
perform below their capability.
 Consequently, HRM must look at the job, Has the latest technology being
provided in order to permit maximum efficiency? Is the office setting
appropriate (properly lit and adequately ventilatod, for cumple) for the job?
 Are the necessary took readily available for the employee use? For example.
If an employee prints on a laser printer throughout the day and the printer is
networked to a station two floors up, that employee is going to be less
productive that one who is a printer on his desk. While not trying to belittle the
problems with such an example, the point should be clear. Office automanon
and Industrial engineering techniques must be incorporated into the job design
Without such planning, the heist intention of managers to motivate employees
may be lost or significantly reduced.
 Once the cars have been taken to ensure that jobs have been properly designed
the nest step in the motivation process is to understand the implications of
 motivational theories. Some motivational theories are well known by
practicing managers, but recent motivation research has proven us and morc
valid theories for understanding what motivates people at work Performance
standards for each employee must also be set. While no easy task managers
must be sure that the performance evaluation system is designed to provide
feedback to employees regarding their past performance, while
simultaneously, addressing any performance was the employee may have.

10. JOB ANALYSIS

MEANING

Job Analysis refers to various methodologies for analyzing the requirements of a job.
Job analysis is the process of describing and recording aspects of jobs (a list of what
the job entails) and specifying the skills and other requirements necessary to perform
the job. Job analysis involves a systematic investigation of jobs using a variety of
methods. to determine essential duties, tasks and responsibilities. Job analysis is
crucial to the identification of relevant skills and competencies. It involves obtaining
objective and verifiable information about the actual requirements of a job, and the
skills and competencies required to meet the local area and University's needs.

Job analysis is the starting point of the whole process of recruitment and selection Job
analysis facilitates accurate recruitment and selection practices sets standards for
performance appraisals and allows appropriate classification/reclassification of
positions.

DEFINITION

“Job analysis is the process of studying and collecting information relating to the
operations and responsibility of a specific job." Edwin Flippo

Job Analysis: The process of documenting a job with the help of job description and
job specification.

IMPORTANCE / PURPOSE OF JOB ANALYSIS

The main purpose of conducting job analysis is to prepare job description and job
specification which in turn helps to hire the right quality of workforce into the
organization.

It helps to understand the qualities needed by employees, defined through behavioral

descriptors, to provide optimum work performance.

1. Purpose of job analysis in Recruitment and Selection

 Job duties that should be included in advertisements of vacant positions;
 Appropriate salary level for the position to help determine what salary should
be offered to a candidate;
 Minimum requirements (education and/or experience) for screening
applicants;
 Interview questions;
 Selection tests/instruments (eg. written tests: oral tests: job simulations)
 Applicant appraisal/evaluation forms.
2. Purpose of job analysis in Job evaluation
 Judges relative worth of jobs in an organization
 Sets fair compensation rates.
3. Purpose of job analysis in Job design
 Reduce personnel costs, streamline work processes;
 Increase productivity and employee empowerment;
 Enhance job satisfaction and provide greater scheduling flexibility for the
employee;
  Simplify job with too many disparate activities;
 Identifies what must be performed how it will be performed, where, it is to be
performed and who will perform it.
4. Purpose of job analysis in Compensation and Benefits
 Skill levels;
 Compensation job factors;
 Work environment (e.g. hazards; attention: physical effort)
 Responsibilities (e.g., fiscal: supervisory)
 Required level of education (indirectly related to salary level).

BENEFITS OF JOB ANALYSIS

There are several more compelling benefits to performing a job analysis:

1. Workforce planning

An effective job analysis can work in tandem with an organization's future-casting.

By stuffing the duties and knowledge, skills, abilities and personal characteristics for
various job titles, HR professionals can match the needs of their organization with the
talent of their current and future workforce.

2. Succession planning

A strategy of workforce planning. HR professionals can use job analysis results to

help fill key roles within their organization, now and in the future.

3. Training

By basing training procedures on the findings of a job analysis, organizations are

better equipped to identify the gaps or distances between the current workforce or a
newly-hired workforce and the knowledge, skills, abilities and personal characteristics
needed the first day of the job. HR professionals can consequently create job-specific
or group/employee- specific training procedures.

4. Employee development

Using the results of a job analysis, organizations may identify any gaps on an
individual
level and assist employees with their career management.

5. Compensation

With an effective job analysis, organizations can ensure that job titles requiring
similar duties and knowledge, skills, abilities and personal characteristics are being
compensated similarly.

6. Legal compliance

Job Analysis process gathers information to assist the organization in deciding

whether or to each duty is an essential function which is as per the legal framework of
the company as well as the law of land so that legal compliance is adhered to.

7. Performance appraisals

The results of a job analysis can allow an organization to develop an employee

according to the specific needs of their job title. Additionally, organizations may also
use the results job analysis to groom employees for promotion by training in areas that
willcontribute to a future position.

8. Health and safety

Job Analysis points out the risk factor associated with a particular job and thus the
action required for the safety of the employees can be taken. Unsafe operations can be
eliminated or can be replaced by safe one or the safety equipment can be installed.

9. Labour relations

When companies plan to add extra duties or remove certain duties from a job, they
require the help of job Analysis, when this activity is systematically done using job
Analysis, it does not affect adversely to the union members and do not hamper labour
relations.

METHODS OF JOB ANALYSIS

1. Direct Observation

Direct Observation of incumbents performing their jobs enables the trained job
analyst to obtain first-hand knowledge and information about the job being analyzed.
The Observation method of Job Analysis is suited for jobs in which the work
behaviours are:

1. Observable involving some degree of movement on the part of the incumbent,

or
2. Job tasks are short in duration allowing for many observations to be made in a
short period of time or a significant part of the job can be observed in a short
period of time.
3. Jobs in which the job analyst can learn information about the job through
observation.

Jobs in which the Observation method is successful include:

 Machine Operator/Adjuster
 Construction Worker

Advantages

 Provides First Hand Job-Related Information: The job analysis process

provides with valuable job-related data that helps managers and job analyst the
duties and responsibilities of a particular job, risks and hazards involved in it,
skills and abilities required to perform the job and other related info.
 Helps in Creating Right Job-Employee Fit: This is one of the most crucial
management activities. Filling the right person in a right job vacancy is a test
of skills, understanding and competencies of HR managers. Job Analysis helps
them understand what type of employee will be suitable to deliver a specific
job successfully.
 Helps in Establishing Effective Hiring Practices: Who is to be filled where
and when? Who to target and how for a specific job opening? Job analysis
process gives answers to all these questions and helps managers in creating,
establishing and maintaining effective hiring practices.
 Guides through Performance Evaluation and Appraisal Processes: Job
Analysis helps managers evaluating the performance of employees by
comparing the standard or desired output with delivered or actual output. On
these bases, they appraise their performances. The process helps in deciding
whom to promote and when. It also guides managers in understanding the skill
 gaps so that right person can be fit at that particular place in order to get
desired output.
 Helps in Analyzing Training & Development Needs: The process of job
analysis gives answer to following questions:
 Who to impart training
 When to impart training.
 What should be the content of training.
 What should be the type of training behavioural or technical.
 Who will conduct training.

Disadvantage

 Time Consuming: The biggest disadvantage of lob Analysis process is that it

is very time consuming. It is a major limitation specially when jobs change
frequently.
 Involves Personal Business: If the observer or job analyst is an employee of
the sani t ation, the process may involve his or her personal likes and dislikes.
This is a major hindrance in collecting genuine and accurate data.
 Source of Data is Extremely Small: Because of small sample size, the source
of collecting data is extremely small. Therefore, information collected from
few individuals needs to be standardized.
 Involves Lots of Human Efforts: The process involves lots of human efforts.
As every job carries different information and there is no set pattern,
customized information is to be collected for different jobs. The process needs
to be conducted separately for collecting and recording Job-related data.
 Job Analyst May Not Possess Appropriate Skills: If job analyst is not aware
of the objective of job analysis process or does not possess appropriate skills
to conduct the process, it is a sheer wastage of company's resources. He or she
needs to be trained in order to get authentic data.
 Mental Abilities Can not be Directly Observed: Last but not the least,
mental abilities such as intellect, emotional characteristics, knowledge,
aptitude, psychic and endurance are intangible things that can not be observed
or measured directly People act differently in different situations. Therefore,
general standards can not be set for mental abilities.
 2. Interview Method

The job Analysis Interview: method to collect a variety of information from are
Interview Method mbent by asking the incumbent to describe the tasks and duties
performed. A structured interview format is used for recording the data collected from
employees. Such data can be compared to identify the common and critical aspects of
the job. The analyst us standardize interview schedule and ask different job related
questions.

3. Questionnaire

Job holder fills in the given structured questionnaire, which are then approved by he
supervisors. The filled in questionnaires offer enough data on jobs. Standard
questionnaires are available or they may be prepared for the purpose by the analysts.
Standard or prepare questionnaire should contain the following basic information:

1. The job title of the job holder.

2. The job title of the job holder's manager or supervisors.
3. The job titles and numbers of the staff reporting to the jobholder.
4. A brief description of the overall role or purpose of the job and A list of the
main task or duties that the job holder has to carry out, as appropriate these
should specify the resources controlled the equipment Used, the contracts
made and the frequency with which the task are carried out.

The questionnaire method has its own advantage and limitations. The major
advantage of the questionnaire method is that information on a large number of jobs
can be collected in a relatively shorter period of time. Further, the questionnaire
method helps save time and the staff required to carry out the programme. Finally, all
the job holder participates in the method unlike an interview where one or two
workers only would participate.

4. Checklist

A checklist is similar to questionnaire, but the response sheet contains fewer

subjective elements and tends to be either -yes-or -no variety. Checklist can cover as
many as 10 activities and job holder tick only those tasks that are included in their
jobs. Preparation o ecklist is challenging job. The specialist who prepares the list must
collect all relevant mation about the job concerned. Such information can be asked by
asking supervisors, industrial engineers, and other familiar with the work. When the
checklist has been prepare for a job, it is sent to job holder. The jobholder asked to
check all listed task char beshe may also be asked to write any additional will be basis
for tabulating job related data.

5. Technical Conference Method

In this method, services of supervisors who possess extensive knowledge about job
are used. It is from these experts that details about the job are obtained. Here, i
conference of supervisors is used. The analyst initiates discussion which provides
detail about jobs. Though a good method of data collection, this method lacks
accuracy because the actual job holders are not involved in collecting information.

6. Diary Method

This method requires the job holders to record in detail their activities each day. If
done faithfully, this technique is accurate and eliminates errors caused by memory
lapses the job holder makes while answering questionnaire and checklists. This
method, however, is time consuming because the recording of tasks may have to be
spread over a number of days. It also engages considerable time of a production
worker. No wonder the diary method is not used much in practice.

The methods described above are not to be viewed as mutually exclusive. None of
them is universally superior .The best results can be obtained by a combination of
these methods.

11. JOB DESCRIPTIONS

INTRODUCTION

This module will help you understand the purpose and components of essential
function job descriptions and provide you with the tools to develop them. Job
descriptions clarify what an employee is responsible for and what is expected of them.
aring a thorough, complete job description is a critical first step in the selection press.
The job description provides potential candidates with a clear description and ain
objective of a position and assists them in determining if they can perform the duties
of the position. Candidates who determine they are unable to perform the duties or do
not meer the minimum qualifications may sell screen themselves from the selection
process which ultimately makes the recruitment process more efficient.

A meaningful duty statement is a valuable tool in orientating new employees to

is her job and role in the department. Work with your Human Resources and Civil
Rights to ensure that you follow any internal procedures and formats required by your
department. What is a Job Description? A job description identifies essential and non
essential tasks that are assigned to a specific position. It also identifies reporting
relationships and may also describe required qualifications, minimum requirements,
working conditions, and desirable qualifications. Supervisors are responsible for
Heveloping and maintaining accurate and current job descriptions for their staff. The
duties should be appropriate for the classification and consistent with the class
specification. It is not uncommon for duty statements to vary within the same
classification due to the various departmental settings and organizational structures. 2
What are the Essential Elements of Job Descriptions?

Job descriptions generally include:

 General statement describing the concept and specific duties of the position.
 Classification title, position number, geographic location, division and work
unit of the position, name and title of supervisor, and effective date of duties.
 If supervisor position, list classifications supervised.
 General statement describing the nature of the unit in context with the
departmen/program.
 Description of the positions supervisory reporting relationship (his
information can be found in the class specification, usually under the
definition of the class)
 Description of each range of supervision for "deep class” classifications.
 List of typical essential and marginal functions/duties. grouped in related
categories.
 Duties broken down by percentage of time spent on each tak or group of
similar tasks.
  Signature and date of employee and supervisor. You may want to include
disclaimer that the employee and supervisor acknowledge by signing the duty
statement that they have discussed the expectations of the position.

Definition: Job Description

According to Edwin Flippo Job description is an informative documentation of the

scope, duties, tasks, responsibilities and working conditions related to the job listing
in the organization through the process of job analysis. Job Description also details
the skills and qualifications that an individual applying for the job needs to possess. It
basically gives all the details which might be good for both the company and the
applicant so that both purties are on the same page regarding the job posting.
Basically, job analysis is bifurcated into two components namely job description and
job specification.

 Job
 Job Classification
 Job Specification
 Job Criteria
 Job Pricing

The job description is used in the recruitment process to inform the applicants of the
job profile and requirements, and used at the performance management process to
evaluate the employee's performance against the description.

Importance of Job Description

A deception in the most important thing which a candidate gets about a job listing.
Job description gives all the relevant and necessary details about a job. The details
which can ne decide whether the job is relevant or not. Qualifications, roles,
responsibilities ete we included in the job description document which paints a clear
picture of what is ted from the particular role.
Job Description Components

ROLES &
DUTIES

ORGANI
SALARY
ZATION
RANGE
GOALS

EDUCATI
SKILLS ONAL
NEEDED QUALIFI
CATIONS

A Job description will include the following components:

 Roles and responsibilities of the job.

 Goals of the organization as well the goals to be achieved as a part of the
profile are mentioned in the job description.
 Qualifications in terms of education and work experience required have to be
clearly mentioned.
 Skill sets like leadership. team management, time management,
communication management etc required to fulfill the job.
 Salary range of the job are mentioned in the job description.

Job Description Sample

A typical job description would have job title followed by summary, After these, there
could be a detailed description of the role. Education qualifications required ure adse
tly included along with location.
 Job Title Regional Sales Manager

Location NY, CA

Job Description The RSM would be responsible for the sales of territory
assigned. The territories would be in and around the job
location.
The RSM should be motivated and willing to make decisions
on his/her own. The sales quota and targets would be
predefined.
The RSM would be leading the local sales team of approx 5-6
team size.
(The description should cover all the details of the job)

Education Graduate with Business Degree/Diploma

Experience 7-8 years of experience in FMCG Sales.

The table above shows a sample job description. Formats for job description may vary
from company to company but the overall details would be similar.

Advantages of Job Description

There are many benefits of having a comprehensive job description given by a

company. Some of the advantages of job description are mentioned below:

 Helps companies understand the type of candidate they should search for
based on title, position and location.
 Employees are well aware about their job roles & duties.
 Job description helps in understanding the workplace environment, benefits
etc for a prospective employee.
 Help i better recruitment & selection.
 Job description clarity highlights all the requirements, objective & goals that it
its at employee to perform.

Disadvantages Job Description

Despite being a thorough documentation related to the job, there are certain limitation
of job description.

 Job descriptions are time bound and can change with organization structure.
industry policies company requirements etc.
 It can only highlight the macro criteria of a job but cannot fully explain the
obstacles, emotional requirements et related to the job.
 Incomplete job description lacking quality information cat misguide both the
HR manager as well as the employee.

Hence, this concludes the definition of Job Description along with its overview.

12. JOB SPECIFICATION

INTRODUCTION

Job specifications, also known as man or employee specifications, is prepared on the

basis of job specification. Job specification is also the product of job analysis. It is a
statement of acceptable human qualities necessary to perform the job. It specifies the
types of person required on the job and further assists in the selection of appropriate
personnel by outlining the particular working conditions to be encountered on the job.

Basic contents of a job specification are as follows:

1. Personal characteristics such as education, job experience, age, sex, and extra
curricular activities.
2. Physical characteristics such as height, weight, chest, vision, hearing, health
voice poise, and hand and foot coordination, (for specific positions only).
3. Mental characteristic such as general intelligence, memory, judgment,
foresight, ability to concentrate, etc.
4. Social and psychological characteristics ich emotional ability. flexibility,
manners, drive, conversational ability, interpersonal ability, attitude, values,
creativity etc.

Based on job description and job specification, employing organizations; insert

advertisements in newspaper, other publications, internet etc. in order to minimize the
size f the advertisements, most of the organizations prefer to include various contents
of the Job description and job specification only briefly; the details of such contents
may be mentioned in the application forms to be filled in by the prospective candidate
or may be communicated to the candidate at the time of interview, In cases where
candidates are selected not for specific jobs but for a pool of jobs like IAS, PCS, etc.
in goverment service; management trainees in business organizations. probationary
officers in commercial banks/financial institutions. ete.; positions existing in various
ministries/departments, business functions production, marketing, finance. human
resource, etc. are notified.

If you look at the content of a job specification, you will find that various
qualities hat a job incumbent should possess may be divided into two broad
categories: technical qualities and behavioural qualities. Technical qualities consist of
knowledge and skills related to "how a job should be performed” Knowledge refers to
the possession of information, facts, and techniques of a particular job. Skills refer to
the proficiency required to use the knowledge to perform the job. Generally technical
qualities are job specific, that is, technical qualities which are relevant to a particular
job will not be relevant to another job if both jobs differ significantly. Behavioural
qualities are not job specific but are of universal nature and are applicable in most of
the job.

Definition: Job Specification

According to Edwin Flippo, A job specification defines the knowledge, skills and
abilities that are required to perform a job in an organisation. Job specification covers
aspects like experience. managerial experience ete which can help accomplish d
related to the job. Job specification helps in the recruitment & selection process, the
performance of employees and in their appraisal & promotion. Job specification,
along with job descriptio, is actually derived from job analysis. Collectively, job
specification and job description help in giving an overview ef the job in terms of its
title. position, roles, responsibilities, education, experience, workplace etc.

Read Next

 Job
 Job Classification
 Job Criteria
 Job Pricing
  Job Aids

Importance of Job Specification

The importance and purpose of job specification is a thoroughly understand the

specific details of a job. Jobs can be of different types and can require a different skill
sets to get the maximum output from a particular. Job specification gives important
details related to he job like education & skills, prior work experience, managerial
experience, personality mais ele which would help an employee accomplish the
objectives of a job. For a recruiter, job specification lays down the guidelines basis of
which the company can reruit and select the best possible candidate who would be
best suited for the job. Apart from actually finding the right candidate or employee,
job specification can be used for screening of resumes & shortlist only those
candidates who are the closest fit to the job. Hence, a job specification gives specific
details about a job and what kind of skill sets are required to complete the job.

Components Job Specification

There are many parameters which are considered while giving the job specification
for a certain profile.

1. Educational Qualification: This parameter gives an insight on bow qualified

a certain individual is. It covers their basic school education, graduation,
masters degree, other cerifications etc.
2. Experience: Job specification clearly highlights the experience required in a
particular domain for completing a specific job. It includes work experience
which can be from a specific industry, position, duration or in particular
domain. Managerial experience in handling and managing a team can also be a
job specification criteria required for a particular position.
3. Skills & Knowledge: This is an important parameter in job specification
especially with knowledge and skill based profiles. The higher the position in
a company, the more niche the skills become and more is the knowledge
required to perform the job. Skills le leadership, communication management,
time management teams management etc are mentioned.
 4. Personality traits and characteristics: The way in which a person behaves in
a particular situation, handles complex problems, generic behaviour etc are all
covered in the characteristics of a job description. It also covers the emotional
intelligence of a person te how strong or weak a person is emotionally.

Job Specification Example

Here is a sample job specification, which is prepared for a marketing manager in a

telecom company.

Education Must be an engineer and MBA in marketing for a reputed

MBA institute.

Work Experience Must have prior work experience in marketing ans sales
(preferably telecom or FMCG)

Skills and Knowledge 1. Must be a good communicator and must be able to

lead a team.
2. Prior experience in handling ATL-BTL, activities
and mais promotional events.
3. Must be able to handle social media like Facebook,
Twitter and help build online brand.
4. Experience in managing PR and media
5. Strong analytical skills and problem solving skill.
6. Must understand business, come up with
innovative products and launch them.

Personality Traits & 1. Must be presentable and a good orator.

Characteristics 2. Should be calm in complex situations and show
leadership skills in managing multiple teams
3. Should be emotionally strong and should give
timely deliverables.

The above table is a sample of job specification. More specific details can also be put
to give a better understanding about the job.
Advantages of Job Specification

There are several benefits of having a comprehensive job specification. Some

advantages are listed below:

 Job specification highlights all the specific details required to perform the job
at its best.
 It gives the HR managers a threshold and a framework on the basis on which
they can identify the best prospects.
 Helps in screening of resumes and saves time when there are multiple
application by choosing those who are closest to the job specification.
 HR managers can used job specification as a benchmark to evaluate
employees give them required trainigs.
 In also helps companies during performance appraisal and promotions.

Disadvantages of Joh Specification

There are certain limitations of job specification. Some of the disadvantages are
mentioned below:

 It is a time consuming process as it has to be very thorough and complete.

 Job description is time bound and changes with changing technology and
changing knowledge & skill requirements .
 It can only give a framework of emotional characteristics and personality traits
but cannot specify the experience or forecast complex issues.
 It is a time-consuming process as it has to be very thorough and complete.
 A job description is time-bound and changes with changing technology and
changing knowledge & skill requirements.
 I can only give a framework of emotional characteristics and personality traits
but cannot specify the experience or forecast complex issues is any.

13. JOB EVALUATION

Job evaluation is the process of systematically determining a relative internal value of

a job in ain organization to all cases the idea is to evaluate the pob, not the person
doing it. Job evaluation is the process of determining the worth of one job in relation
to that of the other jobs in a company so that a fair and equitable wage and salary
system can be established.

Job Evaluation Methods

There are three basic methods of job evaluation (1) ranking. (2) classification. (3)
factor comparison.

Ranking Method

Perhaps the simplest method of job evaluation is the ranking method. According to
this method. jobs are arranged from highest to lowest, in order of their value or merit
to the organization Jobs also can be arranged according to the relative difficulty in
performing them. The jobs are examined as a whole rather than on the basis of
important factors in the job, and the job at the top of the list has the highest value and
obviously the job at the bottom of the list will have the lowest value.

Classification Method

According to this method, a predetermined number of joh groups or job classes are
established and johs are assigned to these classifications. This method places groups
of jobs into job classes or job grades Separate classes may include office, clerical,
managerial, personnel, etc.

The job classification method is less subjective when compared to the earlier ranking
method The system is very easy to understand and acceptable to almost all employees
without hesitation.

One strong point in favor of the method is that it takes into account all the factors that
a job comprises This system can be effectively used for a variety of jobs.

The weaknesses of the job classification method are:

Even when the requirements of different jobs differ, they may be comhined into a
single category, depending on the status a job caries.

It is difficult to write all-inclusive descriptions of a grade.

The method oversimplifies sham differences between different jobs and different
grades.
When individual job descriptions and grade descriptime do not match well, the eva
stors have the tendency to classify the job using their subjective judgments.

Factor Comparison Method

A more systematic and scientific method of job evaluation is the factor comparison
method. Under this method, stead of ranking complete jobs. esch job is ranked
according a series of factors These factors include mental effort, physical effort. skill
needed, supervisory responsibilities, working conditions and other relevant factors
Pay will be assigned in this method by comparing the weights of the factors required
for each job, 1e, the present. wages paid for key jobs may be divided among the
factors weiched by importance (the most important factie, for instance, mental effort,
receives the highest weight) In other words, wages are amod to the job in comparison
to its ranking on each job factor.

Point method

This met widely used currently: Here, jobs are expressed in term a of key factor
Points are god to each factor after prioritering each factor in the onder of mportance
The points are surtuned up to determine the wage rate for the joh Jobs with similar
point totals are placed im similar pay grades.
 INTRODUCION OF LIC

Life insurance is actually an agreement between the insured and the insurer in
which the policy holder accepts to pay regular premium to the insurer. In return, the
ser guarantees monetary protection to the insured in case of any accident or mishaps.
the insured dies in accident, financial help is provided to his family members. Thus,
life arance is necessary as it provides protection to not only you but also to your
family in case of any unwanted disaster.

A thriving insurance sector is very important to every modern economy.

Firstly because it encourages the habit of saving, secondly because it provides a safety
net to rural ind urban enterprises and productive individuals. And perhaps most
importantly it generates long- term invisible funds for infrastructure building. The
nature of the insurance business is such that the cash inflow of insurance companies is
constant while the payout is deferred and contingency related. This characteristic
feature of their business insurance companies the biggest investors in long-gestation
infrastructure development projects in all developed and aspiring nations. This is the
most compelling reason why private sector (and foreign) companies, which will
spread the insurance habit the societal and consumer interest are urgently required in
this vital sector of the aunomy. Opening up of insurance to private sector including
foreign participation has resulted into various opportunities and challenges in India.
 HISTORY OF LIC

In India, insurance has a deep rooted history, It finds mention in the writings of
Mams. atansmnithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasantra). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fine foods, epidemics and famine. This was probably a precursor to
modem day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form marine trade loans and carriers contracts. Insurance in India has
evolved 2 over time heavily drawing from other countries, England in particular. The
process of insurance has seen evolved to safeguard the interests of people from
uncertainty by providing certainty of payment at a given contingency. Life insurance
in its modern form .came to India from England in 1818 with the formation of
Oriental Life Insurance Company (OLIC) in Calcutta mainly by Europeans to help
widows of their kin. Later, due to persuasion by one of its directors (Shri Babu
Muttyal Seal), Indians were also covered by the company. By 1868, 285 companies
were doing business of insurance in India. Earlier these companies were governed by
Indian company act 1866. By 1870, 174 companies ceased to exist, when British
parliament enacted insurance Act 1870. These companies were however, insuring
European lives. Those Indians who were offered insurance cover were treated as sub-
standard lives and were accepted with an extra premium of 15% to 20%.
 PROFILE OF LIC

LIFE INSURANCE CORPORATION OF INDIA LTD

In 1956, the life insurance business of all companies was nationalized and single the
organisation, the life insurance corporation of India (1MC) was set up. Today,
insurance is almost entirely in the hands of the LIC. The post and Telegraph patient
conduct some business in this atea for its employes, but the volume of that iss in
relation that of LIC, is negligible and declining.

The objective of the LIC are to:

 Spread life insurance and provide life insurance protection to the masses at
saving through insurance reasonable cost.
 Mobilize people saving through insurance linked saving schemes.
 Invest the funds to serve the best interest of both the policy holdens and the
nation.
 Conduct business with maximum economy, always remembering belongs to
the policy holders.
 Act as trustee of the policy holders and protect their individual and collective
interest.
 Innovate and adapt to meet the changing.
 CASE STUDY

LIFE INSURANCE CORPORATION OF INDIA, FUTURE PROSEPECTS

In case provide a detailed insight into the strategies adopted by Indian insurance
major Life Insurance Corporation (LIC) of India in various areas. The case provide
information about the company's tistery, it evaluation subsidiaries and the products
offered, and examines its marketing, finance and human resee strategies. Details about
the initiative taken up by the company its technology drive are also crvered, the cause
also provides an insight into the life Insurance industry structure in India and the
changes that took place after the entry of private players into the market. The case
examine how LIC is gearing up to the b tchecomprition from private players and
provides a detailed note on the Indian insurance market.

ISSUES

 Understand the operation of LIC and the various product offered by the
company.
 The changes sweeping the Indian insurance industry after the entry of Private
players,
 Understand the step taken by LIC in order to combat the competition.
 A general understanding of the Indian insurance market and the various
private players present in they industry.
  POSITIVE IMAGE IN FRONT OF HRM?

POSITIVE IMAGE NO OF APPOACHES

YES 10

NO 4

DON’T KNOW 0

From the above tables it is become easy to recognize that HRM has positive image in
front of customer as it provides all related information to the customer as 100% HRM
people says that. It has been clerly explain in the form of graph which is under.

NO. OF APPROACHES

YES
NO
DON'T KNOW
  DOES IT HELP TO INCREASE THE SAVING HRM LIFE
INSURANCE?

INCREASE SAVING OF NO. OF APPROCHMENT AT (%)

CUSTOMERS
YES 8

NO 1

DON’T KNOW 1

From the above table it has been easy to be understand that through HRM help to
increase he saving of customer via Life insurance and it has been proved from the
table that 80% people says, yes, only 10% says no &10% say they don't know it has
been more clearly explained through graphs as under.

NO. OF APPROACHMENT AT(%)

YES
NO
DON'T KNOW
  HRM PROVIDE BENEFITE AND OPPORTUNITY TO HUMAN
RESOURCE?

PROVIDE BENEFIT AND NO.OF OPPORTUNITY(%)

OPPORTUNITY
YES 10

NO 3

DON’T KNOW 0

From HRM the above table it has been say to understand that HRM activity provide
benefits and opportunity to customer and it has been clearly shown in the above table
that 10% HRM people says that it really help the customer to get benefits an
opportunity from life insurance.

NO. OF OPPORTUNITY

YES
NO
DON'T KNOW
  HOW WILL ARE THE ORGANIZATION AFFIRMATIVE ACTION
NEED CLARIFIED AND SUPPORTED IN THE SELECTION
PROCESS?

SELECTION PROCESS NO. OF OPPORTUNITY

POOR 5

GOOD 4

EXCELLENT 1

NO. OF OPPORTUNITY

POOR
GOOD
EXCELLENT
  WHAT IS OVERALL PERCEPTION ABOUT LIC OF INDIA?

PRECEPTION OF LIC PERCENTAGE OF PERCPTION

POSITIVE 6

NEGATIVE 4

PERCENTAGE OF PERCEPTION

POSITIVE
NEGATIVE
  ARE YOU SATISIFIED FOR INNSURING FOR LIC?

SATISIFIED TO THE INSURANCE PERCENTAGE OF SATISIFIED

YES 8

NO 2

PERCENRAGE OF SATISIFIED
 CONCLUSION

The core function of HRM in the insurance industry is to facilitate

performance improvement, measured not only in terms of financial indicators of
operational efficiency but also in terms of the quality of financial services provided.
Factors like skills, attitudes and knowledge of the human capital playa crucial ale in
determining the competitiveness of the financial sector. The quality of human
resources indicates the ability of insurance companies to deliver value to customers.
Capital and technology are replicable but not the human capital which needs to be
valued as a highly valuable resource for achieving that competitive edge. The primary
emphasis needs to be on integrating human resource management strategies with the
business strategy HRM strategies include managing change, creating commitment
achieving flexibility andimprovingteamwork. The other processes representing the
overt aspects o HRM, viz. Recruitment, placement. performance management are
complementary. HIRM has a crucial role to play in insurance sector. It acts as
backbone for the insurance sector, because it only lays the structure for the
organizations operations, functioning and working. Even with the advent of high
technology it will have a prominent role to portray.
 QUESTIONNATRE

1. NAME: _________________________________

2. AGE:
a) Below 30
b) 41-50
c) 51- 60
d) 60 year and above

3. Total number of policies bought

a) One
b) Two
c) More than two

4. Occupation
a) Student
b) Service
c) Self Employed
d) Others

5. Annual Income
a) Below 1 Lac
b) 1 Lac - 5 Lac
c) 5 Lac – 10 Lac
d) Above 10 Lac

6. Positive image in front of HRM

a) Yes
b) No
c) DONT No

7. What Kind of Investment do you prefer?

a) Short Term
b) Long Term
c) Both

8. Does it help to increase the saving HRM life insurance?

a) Yes
b) No
c) DONT NO

9. HRM provide benefits and opportunity to human resource?

a) Yes
b) No
c) DONT KNOW

10. Are you satisfied for insuring with LIC?

a) Yes
b) No

11. What is overall perception about LIC of India?

a) Positive
b) Negative

12. Are you Satisfied for insuring for LIC?

a) YES
b) NO

13. What are the source of Human Resource in your Company?

14. Mostly which Kind of Source is used for recruitment?
15. What are uses of human resource planning?
16. Which type of training method is used?
17. On What basis promotion take place?
 BIBLIOGRAPHY

1. Human Resource Management- Bhavana Chauhan –Lad.

2. Human Resource Management –P.V. Rao.
3. Human Resource Management Text and cases by K. Aswathappa.
4. The Human Resource and Personnel management - William Weather.

WEBLIOGRAPHY

 www.google.com
 www.hrmtoday.com
 www.wikipedia.com
 www.hrmguide.net