You are on page 1of 44

ROLE OF MOTIVATION IN INSURANCE COMPANIES

INTRODUCTION
Managements basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the will to work among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them.

1
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

What is Motivation?
The word motivation is coined from the Latin word "movere", which means to move. Motivation is defined as an internal drive that activates behavior and gives it direction. The term motivation theory is concerned with the processes that describe why and how human behavior is activated and directed. It is regarded as one of the most important areas of study in the field of organizational behavior.

Advantages of Motivation A positive motivation philosophy and practice should improve "productivity, quality and service." Motivation helps people to: achieve goals gain a positive perspective create the power to change build self-esteem and capability Manage their own development and help others with theirs.

2
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

LITERATURE REVIEW
Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work creation of a will to work is motivation in simple but true sense of term.

Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.

In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.

3
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

DEFINITION OF MOTIVATION
According to Edwin B Flippo, Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.

MEANING OF MOTIVATION
Motivation is one of the most frequently used words in psychology. It refers to the factors which move or activate the organism. We infer the presence of motivation when we see that people work toward certain goals. For example, we might observe that a student works hard at almost every task that comes to him/her; from this we infer that the person has motive to achieve. All human behaviour appears to arise in response to some form of internal (physiological) or external (environmental) stimulation. The behaviours, however, are not random. They often involve some purpose or goal. It is often held that behaviours take place as a result of the arousal of certain motives. Thus motivation can be defined as the process of activating, maintaining and directing behaviour towards a particular goal. The process is usually terminated once the desired goal is attained by the person. The process of initiating action is technically called motivation. Directing behaviour towards certain goal is the essence of motivation. Motivation is not always directly observable. It is inferred and used to explain behaviour. When we ask What motivates a person to do a particular task? We usually mean why does she behave as she does. In other words, motivation, as popularly used, refers to the cause or why of behaviour. Interestingly, we are not aware of all our motives. Behaviour can be governed by unconscious motives too. If our understanding of motives is
4
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

correct, we have a powerful tool for explaining behaviour. We explain our everyday behaviour in terms of various motives. Motives also help us make predictions about behaviour. We may tell what a person will do in future. Motives may not tell exactly what will happen but they give us an idea about the range of activities a person will do. Thus a person with a need to achieve in academics will work hard in school; an individual with a strong need to excel in sports will put in a lot of hard work in that field; similarly in business and in many other situations.

The concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.

Intrinsic and extrinsic motivation


Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Research has found that it is usually associated with high educational achievement and enjoyment by students. Explanations of
5
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

intrinsic motivation have been given in the context of Fritz Heider's attribution theory, Bandura's work on self-efficacy, and Deci and Ryan's cognitive evaluation theory. Students are likely to be intrinsically motivated if they:

attribute their educational results to internal factors that they can control (e.g. the amount of effort they put in),

believe they can be effective agents in reaching desired goals (i.e. the results are not determined by luck),

are interested in mastering a topic, rather than just rote-learning to achieve good grades.

Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives. Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition and to children who received no extrinsic reward. Self-determination theory proposes that extrinsic motivation can be internalized by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs.

6
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a person may be highly intelligent according to a more conservative definition (as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale School of Management Professor Victor Vroom's "expectancy theory" provides an account of when people will decide whether to exert self control to pursue a particular goal. Drives and desires can be described as a deficiency or need that activates behavior that is aimed at a goal or an incentive. These are thought to originate within the individual and may not require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger, which motivates a person to seek food; whereas more subtle drives might be the desire for praise and approval, which motivates a person to behave in a manner pleasing to others. By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training animals by giving them treats when they perform a trick correctly. The treat motivates the animals to perform the trick consistently, even later when the treat is removed from the process.

7
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. 3. The rates of labors turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.

5. The number of complaints and grievances will come down. Accident will also be low.

8
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Theories of Motivation
Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are McClellands Achievement Need Theory, J.S. Adams Equity Theory, Vrooms Expectation Theory; Abraham H Mallows need hierarchy or Deficient theory of motivation, and Two factor Theory.

McClellands Achievement Need Theory.


According to McClellands there are three types of needs;

Need for Achievement (n Ach);


This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement.

Need for Power (n Pow)


It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style.
9
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Need for affiliation (n Aff) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle. J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation.

Vrooms Valence x Expectancy theory


The most widely accepted an explanation of motivation has been propounded by Victor Vroom. His theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to act in a specific way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual to make this simple, expectancy theory says that an employee can be motivated to perform better when their is a belief that the better performance will lead to good performance appraisal and that this shall result into realization of personal goal in form of some reward. Therefore an employee is:

10
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Motivation = Valence x Expectancy.

The theory focuses on three things:

Efforts and performance relationship

Performance and reward relationship

Rewards and personal goal relationship

This leads us to a conclusion that:

11
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.


The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslows theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators. Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.

12
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off.

13
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

1. Physiological or Body Needs: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.

2. Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements.

3. Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.

14
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

4. Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem. E.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.

5. Self realization or Actualization needs: - This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.

15
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Two Factor Theory

Theory X and Theory Y of Douglas McGregor:


McGregor, in his book The Human side of Enterprise states that people inside the organization can be managed in two ways. The first is basically negative, which falls under the category X and the other is basically positive, which falls under the category Y. After viewing the way in which the manager dealt with employees, McGregor concluded that a managers view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or her behavior towards subordinates according to these assumptions.

16
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Under the assumptions of theory X:

Employees inherently do not like work and whenever possible, will attempt to avoid it.

Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals.

Employees avoid responsibilities and do not work fill formal directions are issued.

In contrast under the assumptions of theory Y:


Physical and mental effort at work is as natural as rest or play. People do exercise self-control and self-direction and if they are committed to those goals. That the way the things are organized, the average human beings brainpower is only partly used.

On analysis of the assumptions it can be detected that theory X assumes that lowerorder needs dominate individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be authoritarian in nature, the word authoritarian suggests such ideas as the power to enforce obedience and the right to command. In contrast Theory Y organizations can be described as participative, where the aims of the organization and of the individuals in it are integrated; individuals can achieve their own goals best by directing their efforts towards the success of the organization. However, this theory has been criticized widely for generalization of work and human behavior.

17
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

ACHIEVEMENT MOTIVATION
One of the important needs present to some degree in all human beings is the need for achievement or the need to attain excellence and higher level of performance. People in whom the need for achievement is strong seek difficult work and improve their task performance. They are future oriented, aspire for higher goals and persist on the task chosen. They are task oriented and prefer to work on tasks that are challenging and on which their performance can be evaluated in some way. It may be by comparing it with other persons performance in terms of some standard. Achievement motivation can be seen in many areas of human endeavor such as job, school or sports competition. The differences in early life experiences are found to be related to the strength of achievement motivation in later stage. The expectations parents have from their children also play an important role in the development of achievement motivation. Parents, who expect their children to work hard, encourage and praise them for their performance do so as to promote achievement oriented behavior. The degree of achievement oriented behavior depends on many factors. One of these is fear of failure. It inhibits the expression of achievement behavior. When someone is successful in school, sports and other activities, we say that achievement motivation is very strong in him or her.

18
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Types of Motivation.
Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant.

Extrinsic motivation comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades)

Incentives

An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.

Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those
19
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like egosatisfaction, self-actualization and responsibility.

Incentives

Financial Incentives Wages and Salaries. Bonus Medical reimbursement Insurance Housing facility Retirement benefits.

Non-financial incentives

Competition Group recognition Job security Praise Knowledge of result Workers participation.

20
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Motivation is the key to performance improvement


There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus:

Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation.

Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance
21
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap.

DEPARTMENT PROFILE
The organization has mainly 4 departments. They are

1. HUMAN RESOURCE DEPARTMENT 2. FINANCE DEPARTMENT 3. PURCHASE DEPARTMENT 4. PRODUCTION DEPARTMENT

22
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

ORGANIZATION CHART OF HUMAN RESOURCE DEPARTMENT

General Manager (Works)

Manager Industrial Relations Jr. Manager Establishment Sr. Officer HR

Security Time Office Assistants

The managing human resource in the organization is an important task. Human resource department is doing the management of human resource in the organization. In HR department that each authority coming under the General Manager (works) has to report directly to General Manager (Works) in the hierarchy. This will helps to speed up the communication flow in the organization.

23
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

ORGANISATION CHART OF FINANCE DEPARTMENT


Deputy Manager Accounts

Assistant manager

Sr. Accounts Officer

Assistants

Sound financial decisions have been one of the critical practices in the success of proper planning and long vision of the financial managers help the company to undergo to smooth sail. All monetary transactions of the company are handled and brought to account by the finance department.

24
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

ORGANISATION CHART OF PURCAHSE DEPARTMENT

Sr. Purchase Manager

Assistant Manager Purchase

Purchase Officer

Assistants

The purchase manager is the only person who is the having the prime authority to make orders for the purchase of raw materials. After referring the stock report of

raw materials and finished goods, the purchase manager purchase the rawmaterials in order to ensure the continuous flow of production.

25
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

ORGANISATION CHART OF PRODUCTION DEPARTMENT

Production Manager

Deputy Manager Production

Deputy Manager Maintenance

Jr. Manager Production

Jr. Manager Production

Shift in charge

The production manager and his team are responsible for realizing the visions of the company within constraints of technical possibility. This involves coordinating the operations of various production activities and maintains a good flow of work without any blockage.

26
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Profile about Insurance Industry


Insurance is financial risk protection instrument. The main function of the insurance is to provide protection against the probable chances of loss (Bodla et al 2004). It not only increases the savings habit of the customers, but also protects the policyholders family. It has sound history in India. In the year 1999, IRDA ACT was enacted by Government of India. By which private players are allowed to start their business in India along with foreign partners, with little restriction in capital of foreign players. As of now, there are 26 life Insurance companies, 25 General Insurance companies in India. More over few more players wait to jump into the market by seeing the opportunity here .These new insurers come with innovative products, novel marketing ideas, and different distribution channels. Insurers are spending heavily on acquiring IT packages and work flow systems (Jawaharlal, 2004). Implementation of the every vital decision is by the insurance companies top officials. They squeeze the brain consecutively to get victory. They have enormous physical and mental work. They are the forerunners of the insurance companies. They lead, manage, and administer the company in right direction. Continuously they have to update facts about the insurance industry, prospective customers needs, demands and competitors movement then only they can manage their organization rightly. Their contribution to the company is high. Success of the insurance company is behind the winning strategy taken by the officials.

27
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Need for the study

Officers of the insurance companies are in the middle level, top level in the management. They are educated, skilled, experienced employees for the company. They must have more decision making skill, administrative skill, conceptual skill. They have to implement these skills in different proportion in different period. Work environment, Employee relationship must be smooth, then only they achieve the target fixed to them. They feel satisfaction about the company, job. This research work tries to examine the impact of job situation variables on motivation of officers of private, government insurance companies.

Objectives of the study:


To find out the Job situation variables and its influence on motivation of insurance company Officer. To analyze the level of motivation of officers of private and government owned insurance company due to job situation variables. To bring out measures to suggest both the insurance companies.

28
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

METHODOLOGY
This study used Analytical survey design. The target respondent for this research study were officers of both private, government owned insurance companies. These insurance companies spread various parts of Tirunelveli, Tuticorin, Kanyakumari districts of Tamilnadu in India. Researchers adopted the work motivation questionnaire of K.G.Agarwal. It has 26 questionnaires. A questionnaire consists of set of well-formulated questions to probe and obtain responses from respondents, (Paneerselvam, 2007). The questionnaire used in study was used to extract opinion from the respondent. The dimension Job situation is chosen for this research study. It has three variables such as chance to learn, use of abilities, and pattern of work. Questionnaires were distributed to the officers of insurance companies and got 80 from respondents.

RESULTS & DISCUSSIONS


Data are collected regarding the pattern of working of officers of both private, governments managed insurance companies. The mean value for the both the set of offices are almost same. It reveals that both the officers perform their task in the same manner. Further the opinion of the both sector employees are tested statistically by using Z Test by framing hypothesis.

29
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

TABLE-1: PATTERN OF WORKING AND MOTIVATION: RESULT OF Z TEST Officers of Private Insurers Officers of Government Insurers Mean Known Variance Observation Hypothesized mean Difference Z P ( Z<= z) Two tail Z critical Two tail : 0.438799564 0.660806776 1.959963985 3.595744681 0.854764 47 0 3.484848 1.507576 33

Ho: There are no difference between the officers private and government insurance companies with respect to Pattern of working. The calculated value of Z is 0.438799564, but the tabular value of Z is 1.959. As the calculated value of Z is less than the tabular value. It indicates that officers of both private, government insurance companies have the same level of opinion.

30
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

TABLE- 2 : USE OF ABILITIES AND MOTIVATION : RESULT OF Z TEST Officers of Private Insurers Officers of Government Insurers Mean Known Variance Observation Hypothesized mean Difference Z P ( Z<= z) Two tail Z critical Two tail : 0. 806172 0.420144 1.9599 4.106383 1.097132 47 0 3.8787 1.8598 33

After having lot of experience in the company, employee attains the officer cadre in the insurance company. Their skills, knowledge about the job, talent are to be fully utilized the organization. Perhaps if it is used completely, they feel they are doing responsible duties in the company. Opinion is collected for the extent of skill, talent utilized by the officers of private, government insurance companies. The table shows that private and government insurance company officers are having similar perception about the utilization of skills, abilities, since the mean value for the both are same. For the purpose of explain it sharply, Z-test is statistically calculated with null hypothesis. Ho: there are no vital difference between the officers of private and government insurance Companies in relation with utilization of ability. The calculated value for Z is 0.806172 and tabular value

31
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

for the Z is 1.959964. Since the calculated value of Z-test is lesser than the tabular value, the null hypothesis is accepted. It interprets that the both officers government, private are of the same perception.

TABLE -3: CHANCE TO LEARN AND MOTIVATION: RESULT OF ZTEST . Officers of Private Insurers Officers of Government Insurers Mean Known Variance Observation Hypothesized mean Difference Z P ( Z<= z) Two tail Z critical Two tail : -0.23485 .8143 1.959964 3.9787 0.977798 47 0 4.0303 0.905303 33

Outstanding and ever shine employees are created only through professional learning. Employees themselves feel, without learning about the duties anything cannot take place. Continuous learning will enrich employee about duties, ethics in their organization. On the other side, to make the employee a knowledgeable person, Training program must be imparted frequently. It will thoroughly modify the behavior of the employee towards the organization. Responses are collected from the respondents and analyzed, mean value is calculated.

32
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

From the mean value it is clearly understood that both are having same opinion about chance to learn variable. To get further clearance, Z-test is used. Ho: There are no differences between officers of private, government insurance company towards Chance to learn. The calculated value of Z is -0.23485, Tabular value of Z is 1.959964. Calculated value is lesser than the tabular value. Null hypothesis is accepted. Hence it is concluded, both the officers are having similar opinion towards chance to learn. Correlation and regression value for Job situation for the officers of Insurance companies: Correlation is the statistical tool that we can use to describe the degree to which one variable is linearly related to another. Regression and correlation analysis will show us how to determine both the nature and the strength of a relationship between two variables (Richard & David, 1986). In order to find out the influence of Job situation on motivation of private and government sector insurance officials, a correlation and regression analysis is used. The results of the analysis are presented as follows.

33
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

TABLE-4 JOB SITUATION AND MOTIVATION (COMBINED SCORE)

Multiple R R square Adjusted R square Standard Error Observation

0.596102 0.355338 0.347073 13.8226 80

df Regression Residual Total 1 78 79

SS 8214.546 14903 23117.55

Ms 8214.546 191.0642

F 42.9936

SignificanceF 5.41716

Data collected for job situation for both the private, government owned officers of insurance companies. Total score of the officers are compared with combined score of pattern of living, Chance to learn, use of abilities. The calculated correlation value for the impact of job situation on motivation is 59.61%. It indicates job situation moderately influence motivation. Officers over all opinion about job situation infer that it moderately influences motivation. Efficiency of the officer only is elicited with the help environment of work place. Management should keep it their mind to satisfy the officer. General policy may be created in insurance companies in relation with work place situation. The policy that has been created should smooth the situation and everything in the organization.
34
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

FINDINGS & SUGGESTIONS

Both the private, government insurance company officials have same opinion about the satisfaction of pattern of working, chance to learn. However private sector insurance officials are offered comparatively better chances to learn about the insurance plans, special features, companys rules and regulations than the government insurance company officials. Separate training department with frequent on the job training, off the job training techniques are imparted to the officials might have motivated private insurance company officials a reasonable amount. Further correlation analysis indicates that the job situation is influencing the motivation of insurance officials to a reasonable extent. The final objective of this research work is to bring out measures to suggest both sector insurance companies. As the job situation variables are increasing the motivational level of insurance officials, both government and private insurance company management have to give adequate importance to these variables in order to boost up the motivational level. In government insurance companies due to job security, influence of union, officers do their duty at moderate speed. If they are provided good working environment, training, recognition, officers perform their task happily. In the case of private insurance company, officers are given higher salary, quick promotion, continuous training, do the work at the high speed. The main issue in the case of private insurance company is job insecurity. Right steps must be taken by the management to restraint this from the mind officers. If it does so, surely they may be highly motivated.

35
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

LIMITATIONS OF THE STUDY


The limitations of the study are the following The data was collected through questionnaire. The responds from the respondents may not be accurate. The sample taken for the study was only 50 and the results drawn may not be accurate. Since the organization has strict control, it acts as another barrier for getting data. Another difficulty was very limited time-span of the project. Lack of experience of Researcher.

36
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Application of Motivational Strategies

Thompson (1990) identified seven practices that can raise the level of motivation of people in work organizations: Ensure that workers motives and values are appropriate for the jobs on which they are placed. Make jobs attractive and consistent with workers motives and values. Define work goals that are clear, challenging, attractive and attainable. Provide workers with the personnel and material resources that facilitate their effectiveness. Create supportive social environments. Reinforce performance. Harmonize all these elements into a consistent socio-technical system.

37
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Motivation in an Organization
Ordinarily, people see certain things as motivators, for example money, competition, recognition and disciplinary action. This is true to limited sense. All these things motivate people to a certain extent and under certain conditions. On the other hand when a person is intrinsically motivated, he feels the activity itself is very rewarding. Recognition, i.e. the appreciation of good work is very necessary. The following ways could be used to help create an environment where intrinsic motivation is high: 1. Ensuring that the employees have the relevant tools and enterprise required for the job. The employees must consider themselves competent to handle the job. The right tools, right office equipment, skills training or other relevant outputs which may be necessary for them to perform the jobs effectively. 2. Employees feel valued and their motivation level is enhanced when managers seek their feedback and try to view things from their perspective. This can be done by conducting anonymous surveys or by interacting directly with the employees. 3. By giving the employees to choose the ways and methods of doing a particular job helps the employees to enjoy certain degree of freedom and this in turn encourages the employees to be innovative and try out new ways of doing things.

38
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

4. Employers feel more fulfilled and satisfied if managers assist them in discovering their true potential. This can be done by conducting self development programs for employees. 5. These steps can help create an environment where employees are intrinsically motivated. Rather than working for the sake of rewards or recognition, they work because they find the job satisfying and rewarding.

Facilitating Job Enrichment & Enlargement in Human Resources Management:


Job Enrichment should be distinguished from enlargement job enlargement attempts to make a job more varied by removing the dullness associated with performing repetitive operations. In job enrichment, the attempt is to build in to jobs a higher sense of challenge and achievement. The accumulation of achievement must lead to a felling of personal growth accompanied by a sense of responsibility. The goal of job enrichment is not merely to make the more varied but I the words of M.Scoot myers research for taxes investment, which has been experimenting with the techniques is to make every employee a manager . Thus the employee job is enriched will perform the management function of manning and controlling so far as his work is concerned.

39
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Job Enrichment in action


A number of companies have introduced programs of job enrichment in all these, companies claims have been made that productivity was increased, that absenteeism and turnover reduced, and that morale improved. A study conducted by the United States Department of Health Education and welfare Published in 1973 reports that the primary course of dissatisfaction among workers is the nature of their work. It also reported that managerial personnel react favorably after jobs are enriched. However after analyzing a number of studies.

Limitations
But even the strongest supporters of job enrichment readily admit that three are limitations in its application They can be analyzed in the following manner. 1. Technology: There are some jobs, which are highly technical requiring skill it would be difficult to enrich such jobs. And with specialized machinery and assembly line techniques it may not be possible to make every job meaningful.

2. Cost: Thought a great many companies appear to be interested in job enrichment programs, the extra cost may seem high if a company is not convinced that the return will at least offset the increase expenditure. General Motors tried six man and three man teams in the assembly line but from that they found the work shoed and cost increased. At Saab & Volvo and motors India. It was found that increase cost is compensated by reduced absenteeism and labour turnover. Yet the cost of the programme is formidable factor.

40
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

3. Attitude of managers: Another problem is the tendency of top managers and personal specialist to apply their own scale peoples personalities. As a result a few companies have abandoned or modified their programs. M.Scott Myers believes that the failures have occurred because the managers were not really committed to theory Y and in most cases job enrichment is usually imposed on people. They are told about it rather than consulted. 4. Attitude of Workers: The attitudes of some employers also represent obstacles. Various surveys of workers attitudes have shown that high percentages of workers attitude have shown that high percentages of workers are not interesting jobs. Some have complained that enriched jobs provide too many opportunities to commit mistakes. Some workers fears that the increased productivity sought may even mean loss of jobs. 5. Reaction of union Leaders: There has been little or no support of job enrichment by union Leaders. If job enrichment was so important to workers. It must have been translated in to united demand but it has never happened. Instead Leonard woodcock the President of united Automobile Worker has been quoted to have said about job enlargement that a lot academic writer are writing a lot of nonsense.

41
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

Impact of Job Situation on the Motivation of Insurance Companies Officers: A Developmental Perspective.
AbstractMotivation contributes immensely to the promotion of the efficiency of the officers of organizations. Insurance companies spend huge sum of money and, efforts for the satisfaction of their officers so as to make them more productive. Motivation results in commitment and dedication on the part of the officers in their duty. It results in the accomplishment of the organizational objectives at the appropriate time. Different factors are responsible for the motivation of the officers in the insurance company. But in this research work, researchers take job situation factor alone. The researchers study the impact of job situation factor on the motivation of insurance company officers. For this research work, private, government owned life Insurance and general insurance company officers are the respondents. Results of the Z-Tests highlight that officers of private and government insurance are of the same opinion about the motivational efforts taken by the organization. Results of correlation, Regression analysis infers that more than half of the total respondents are of the opinion that they are moderately influenced by the motivational factor.

42
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

MANAGERIAL IMPLICATION OF MOTIVATION


Insurance plans are tangible products. It is being sold more with the help of the intermediaries like agents, Bancassurance, brokers and corporate agent. These intermediaries are trained to sell insurance plans to prospective customer only by the effort taken by the insurance company officers. Employees are the back bone of the organization (Balachandar & Panchanatham, 2010). Some crucial work such as underwriting, sales promotion, claims, Actuary, Investment of collected premium, Administration are the few of the tough duties done by the officers. Hence management must motivate them correctly for the satisfaction of the officers. The major outstanding factors which are responsible for the satisfaction of officers are company policy, Salary, working condition, pattern of working, and use of abilities, chance to learn. It results in smooth relation between the management and the officers. Permanent motivational practices followed by the company may increase of the reputation of the company in the mind of the agents, tie up banks, public. Finally it brings robust business to the insurance company.

43
T.Y.B.Com (BANKING & INSURANCE)

ROLE OF MOTIVATION IN INSURANCE COMPANIES

CONCLUSION
Only in recent years Insurance companies top level management realize the necessity of employee motivation in the organization. Insurance management frames and designs innovative, different motivational methods, then implement it. The extent of involvement of the officers in their duty depends on the various motivational strategies followed by the management. Top management needs to concentrate on the motivation factors such as pattern of working, chance to learn and use of abilities. Mean value for the three motivational factors are almost similar for both the private and government owned insurance company officers. Jointly both the private, government insurance companies may further think about new motivational strategies for the officers for their satisfaction. It leads to low officer attrition rate, less absenteeism, better team work, and increase in the company image.

44
T.Y.B.Com (BANKING & INSURANCE)