Transcript
“A Study Of Human Resource Practices In LIC Amravati”
CHAPTER 1
INTRODUCTION
1.1) Introduction:
Human resources functions are significantly different from HR practices.
Functions are comprised of transactional activities that can be handled in-house or
easily outsourced. Practices are part conceptual, part implementation of an HR
strategy, comprised of systems that follow the normal or customary way of doing
business. The term "best practices" refers to the HR systems that have the greatest
impact on the workforce and the organization.
The search for universal principles of human resource management has been a
long one marked by periodic rediscoveries. Indeed one of the paradoxes in this search
is that we keep finding answers but somehow do not stick to them. For example, the
principle that "if you want people to change, you will be more likely to succeed if you
involve them in the process of planning the change" is as old as management inquiry
itself, yet we find participatory management, Likert's System 4, employee
empowerment, and similar concepts emerging over and over again as if they are new
and brilliant insights. Similarly, the principle that "if you want good communication
in an organization it is necessary to build high levels of mutual trust," has been known
for a long time, yet we casually introduce management practices that undermine trust
and then wonder later why our organizations are not more effective. Most
management theories espouse that people are important, but few of them treat people
as more than a resouce to be managed like any other resource, and few of them treat
people as a capital investment. In fact the frenzy of downsizing that we are seeing all
over the world today suggests that people are viewed primarily as a cost to be
controlled and minimized. Part of the problem is that we have split off human
resource management from the general management problem, as if there were some
other kind of management other than human resource management. As long as
organizations are based upon the coordinated action of two or more people,
management is by definition human resource management. It is a reasonable to
postulate that those few organizations in the world who understand the above points,
who understand that all management involves people, and who practice the principles
of empowerment and trust building will consistently outperform those who do not,
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and that this result will occur in organizations all over the world regardless of culture.
However, this result will only show up empirically in studies that are carried out over
a long period of time. Unfortunately most organizational research is not longitudinal
so we try to infer the validity of these principles from sets of organizations that are
only studied at one point in time. And, as you know, those studies are often
embarrassed by the fact that the very organizations named as the high performers at
the time of the research turn out to be poor performers a few years later.
Importance HR Practices:
"Why," you may ask, "do I need a policies and practices strategy for my
business?"
The simple answer is...because you have people working for you.
With human nature being what it is, employees will test limits and act
"creatively" in workplace situations, so you need a strategy for developing,
communicating and enforcing a set of policies and practices that reflect your
standards of acceptable behavior.
But a successful policies and practices strategy does more than draw
boundaries; it also recognizes and addresses people's needs.
There are many different types of people, and not surprisingly, they react
differently to the need for policies and practices based on those differences. For
example, some people prefer there be a written policy for everything, while others
favor having no policies at all and would leave everything open to interpretation as
situations arise. Neither of these extremes contributes to a work environment that's
conducive to high productivity levels. The answer is found in between, with the right
number and types of policies and practices that are focused on a primary goal-improving individual performance in the workplace.
When you get to the heart of the matter, performance improvement is really
about the process of setting expectations and meeting them. The focus in business is
not just about meeting specific goals, but also about how you achieve them. And the
"how" affects the liabilities you create in the process.
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So how can you make sure your employees have clear expectations and are treated
fairly as they work to help build your company? The answer is found in the way you
address four key elements related to the development and deployment of your policies
and practices: roles, rules, consequences and tools.
Roles
People like to have a clear understanding of their role in a company as well as
the roles of others. Every successful team has well-defined positions for its members:
Everyone knows what he or she is to do, how to do it and how their performance can
impact those around them. In business, this means you need to have clear reporting
structures that spell out who's in charge and how tasks are to be accomplished in the
organization.
This approach applies not only to intradepartmental structures, but also to
company-wide or interdepartmental projects. In addition, role definition is a
foundational part of establishing clear performance expectations for each employee.
Rules
Managers and employees need to share a clear understanding of what is and
what is not acceptable behavior within the company. Unfortunately, in today's
workplace, an employer can be held liable for the bad behavior of an employee,
especially when that bad behavior affects other employees, clients or individuals.
Having a clear set of behavioral expectations is critical to establishing that you're not
contributing to that bad behavior as an employer.
Setting clear and specific behavioral standards in the form of rules establishes
a framework for spotting and addressing violations of those standards. If you rely on
loosely defined general standards that aren't properly documented, then violations
become subjective and open to interpretation. The result of such ambiguousness is
often litigation.
Consequences
It's important that you clearly state consequences for violations of your
behavioral standards so that employees know what to expect and have fair warning of
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those expectations. In addition, clear consequences help to ensure that you aren't
limited in your options for dealing with improper behaviors.
To establish these standards and violation consequences, sit down and think
through the over-the-line behaviors that won't be permitted in your company. It's
essential that you know ahead of time what employee actions require an immediate
dismissal. Similarly, you want to know what performance issues may qualify for a
more progressive disciplinary approach, and then define the steps involved in that
approach.
By nature, people are complex beings who will confound you one minute and
astound you the next. And except for violations that warrant immediate firings, it's
usually a wise, compassionate and financially prudent course to help people
strengthen their character by overcoming their weaknesses. Also, this approach
provides you with a way to retain experienced employees and recover your
investment in their Practices.
I've found that managers are often disappointed in an employee's performance
even though the manager never clearly communicated his or her expectations to that
employee. If you don't take steps to set clear expectations, the consequences you
administer for failure to meet those expectations can seem unfair. This is extremely
important because an employee who feels they've been treated unfairly can create a
great deal of liability. In many cases, the key issue is not whether they were actually
treated unfairly but whether the employee feels or perceives that they were treated
unfairly.
And it doesn't stop with the affected employee. If you or your managers
haven't clearly communicated your expectations to one employee, chances are you
haven't done so with other employees as well and they can be quick to empathize with
any affected workers. It's natural for employees to wonder, "What if that happened to
me?" To avoid the negative effect such a chain-reaction can have on your workplace,
be clear about your expectations with all employees at all times. Most employees will
appreciate and respect your forthright clarity.
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Building a great company has a lot to do with how people work together.
Policies and practices can improve the way your employees interact, while
minimizing the personnel obstacles that often arise in today's workplaces.
Tools
Tools address the question of how you support the people in your company
who manage other employees. When faced with a specific personnel issue, what
resources are available to them? Do they have an employee handbook or a policy
guide? What about regular Practices in company policies and practices, coupled with
simple, easy-to-use forms to guide them when dealing with particular issues? Are you
giving them a clear directive on working with your human resources personnel or
legal representatives? Are your resources available online?
Tools like these are vital not just to help avoid litigation, but also to minimize
the time it takes for you to deal with productivity-draining people issues instead of
core business matters. Because many small-business owners lack these resources and
aren't sure where to turn for help, they may use attorneys and HR consultants on an a
la carte basis to address such issues. Other businesses call on professional employer
organizations like Administaff to provide the support of a full-service human
resources department.
Whatever your approach, the key to success is to devote the time and
resources it takes to develop a policies and practices strategy for your business before
the need arises. It's an investment that can pay large dividends in increased
productivity and minimized litigation. And it's an essential component of your
comprehensive people strategy.
Paul Sarvadi is the "Human Resources" coach at Entrepreneur.com and is
chairman of the board, CEO and co-founder of Administaff, one of the nation's
leading Professional Employer Organizations (PEO), which serves as an outsourced
full-service human resources department for small and medium-sized businesses
throughout the United States.
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1.2) Human Resource:
Human resources is the set of individuals who make up the workforce of
an organization, business sector, or economy. "Human capital" is sometimes used
synonymously with human resources, although human capital typically refers to a
more narrow view (i.e., the knowledge the individuals embody and can contribute to
an organization). Likewise, other terms sometimes used include "manpower", "talent",
"labour", or simply "people".
The professional discipline and business function that oversees an
organization's human resources is called human resource management (HRM, or
simply HR).
The term in practice
From the corporate objective, employees have been traditionally viewed as
assets to the enterprise, whose value is enhanced by further learning and development,
referred to as human resource development. Organizations will engage in a broad
range of human resource management practices to capitalize on those assets.
In governing human resources, three major trends are typically considered:
1. Demographics: the characteristics of a population/workforce, for example,
age, gender or social class. This type of trend may have an effect in relation to
pension offerings, insurance packages etc.
2. Diversity: the variation within the population/workplace. Changes in society
now mean that a larger proportion of organizations are made up of "babyboomers" or older employees in comparison to thirty years ago. Advocates of
"workplace diversity" advocate an employee base that is a mirror reflection of
the make-up of society insofar as race, gender, sexual orientation etc.
3. Skills and qualifications: as industries move from manual to more managerial
professions so does the need for more highly skilled graduates. If the market is
"tight" (i.e. not enough staff for the jobs), employers must compete for
employees by offering financial rewards, community investment, etc.
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In regard to how individuals respond to the changes in a labour market, the following
must be understood:
Geographical spread: how far is the job from the individual? The distance to
travel to work should be in line with remuneration, and the transportation and
infrastructure of the area also influence who applies for a position.
Occupational structure: the norms and values of the different careers within an
organization. Mahoney 1989 developed 3 different types of occupational
structure, namely, craft (loyalty to the profession), organization career path
(promotion through the firm) and unstructured (lower/unskilled workers who
work when needed).
Generational difference: different age categories of employees have certain
characteristics, for example, their behavior and their expectations of the
organization.
Concerns about the terminology
One major concern about considering people as assets or resources is that they
will be commoditized and abused. Some analysis suggests that human beings are not
"commodities" or "resources", but are creative and social beings in a productive
enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the
processes, their sequence and interaction, and to define and communicate
responsibilities and authorities. In general, heavily unionized nations such
as France and Germany have adopted and encouraged such approaches. Also, in 2001,
the International Labor Organization decided to revisit and revise its 1975
Recommendation 150 on Human Resources Development, resulting in its "Labor is
not a commodity" principle. One view of these trends is that a strong social consensus
on political economy and a good social welfare system facilitate labor mobility and
tend to make the entire economy more productive, as labor can develop skills and
experience in various ways, and move from one enterprise to another with little
controversy or difficulty in adapting.
Another important controversy regards labor mobility and the broader
philosophical issue with usage of the phrase "human resources". Governments of
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developing nations often regard developed nations that encourage immigration or
"guest workers" as appropriating human capital that is more rightfully part of the
developing nation and required to further its economic growth. Over time, the United
Nations have come to more generally support the developing nations' point of view,
and have requested significant offsetting "foreign aid" contributions so that a
developing nation losing human capital does not lose the capacity to continue to train
new people in trades, professions, and the arts.
Practices
Business function
Dave Ulrich lists the functions of HR as: aligning HR and business strategy,
re-engineering organization processes, listening and responding to employees, and
managing transformation and change.
At the macro-level, HR is in charge of overseeing organizational leadership
and culture. HR also ensures compliance with employment and labor laws, which
differ by geography, and often oversees health, safety, and security. In circumstances
where employees desire and are legally authorized to hold a collective bargaining
agreement, HR will typically also serve as the company's primary liaison with the
employee's representatives (usually a labor union). Consequently, HR, usually through
representatives, engages in lobbying efforts with governmental agencies (e.g., in the
United States, the United States Department of Labor and the National Labor
Relations Board) to further its priorities.
To look at Human Resource Management more specifically, it has four basic
functions: staffing, Practices and development, motivation and maintenance. Staffing
is the recruitment and selection of potential employees, done through interviewing,
applications, networking, etc. Practices and development is the next step in a
continuous process of Practices and developing competent and adapted employees.
Motivation is key to keeping employees highly productive. This function can include
employee benefits, performance appraisals and rewards. The last function of
maintenance involves keeping the employees' commitment and loyalty to the
organization.
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The discipline may also engage in mobility management, especially pertaining
to expatriates; and it is frequently involved in the merger and acquisition process. HR
is generally viewed as a support function to the business, helping to minimize costs
and reduce risk.
Careers
There are half a million HR practitioners in the United States and thousands
more worldwide. The Chief HR Officer or HR Director is the highest ranking HR
executive in most companies and typically reports directly to the Chief Executive
Officer and works with the Board of Directors on CEO succession.
Within companies, HR positions generally fall into one of two categories:
generalist and specialist. Generalists support employees directly with their questions,
grievances, and work on a range of projects within the organization. They "may
handle all aspects of human resources work, and thus require an extensive range of
knowledge. The responsibilities of human resources generalists can vary widely,
depending on their employer's needs." Specialists, conversely, work in a specific HR
function. Some practitioners will spend an entire career as either a generalist or a
specialist while others will obtain experiences from each and choose a path later.
Being an HR manager consistently ranks as one of the best jobs, with a #4 ranking
by CNN Money in 2006 and a #20 ranking by the same organization in 2009, due to
its pay, personal satisfaction, job security, future growth, and benefit to society.
Human resource consulting is a related career path where individuals may
work as advisers to companies and complete tasks outsourced from companies. In
2007, there were 950 HR consultancies globally, constituting a USD $18.4 billion
market. The top five revenue generating firms were Mercer, Ernst & Young, Deloitte,
Watson Wyatt (now part of Towers Watson), Aon (now merged with Hewitt),
and PwC consulting. For 2010, HR consulting was ranked the #43 best job in America
by CNN Money.
Some individuals with PhDs in HR and related fields, such as industrial and
organizational psychology and management, are professors who teach HR principles
at colleges and universities. They are most often found in Colleges of Business in
departments of HR or Management. Many professors conduct research on topics that
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fall
within
the
HR
domain,
such
as financial
compensation, recruitment,
and Practices.
1.3) Literature Review:
Human Resource Development (HRD) is the framework for helping
employees develop their personal and organizational skills, knowledge, and abilities.
Human Resource Development includes such opportunities as employee Practices,
employee career development, performance management and development, coaching,
mentoring, succession planning, key employee identification, tuition assistance, and
organization development.
The focus of all aspects of Human Resource Development is on developing
the most superior workforce so that the organization and individual employees can
accomplish their work goals in service to customers.
Organizations have many opportunities for human resources or employee
development, both within and outside of the workplace.
Human Resource Development can be formal such as in classroom Practices, a
college course, or an organizational planned change effort. Or, Human Resource
Development can be informal as in employee coaching by a manager. Healthy
organizations believe in Human Resource Development and cover all of these bases.
1.4) Scope of the study:
Human resources are undoubtedly the key resources in an organization, the
easiest and the most difficult to manage! The objectives of the HRM span right from
the manpower needs assessment to management and retention of the same. To this
effect Human resource management is responsible for effective designing and
implementation of various policies, procedures and programs. It is all about
developing and managing knowledge, skills, creativity, aptitude and talent and using
them optimally.
Human Resource Management is not just limited to manage and optimally
exploit human intellect. It also focuses on managing physical and emotional capital of
employees. Considering the intricacies involved, the scope of HRM is widening with
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every passing day. It covers but is not limited to HR planning, hiring (recruitment and
selection), Practices and development, payroll management, rewards and recognitions,
Industrial relations, grievance handling, legal procedures etc. In other words, we can
say that it’s about developing and managing harmonious relationships at workplace
and striking a balance between organizational goals and individual goals.
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CHAPTER 2
COMPANY PROFILE
2.1) Introduction:
Life Insurance Corporation of India (LIC) is an Indian state-owned insurance
group and investment company headquartered in Mumbai. It is the largest insurance
company
in
India
with
an
estimated
asset
value
of 1560482 crore
(US$240 billion). As of 2013 it had total life fund of Rs.1433103.14 crore with total
value of policies sold of 367.82 lakh that year.
The company was founded in 1956 when the Parliament of India passed the
Life Insurance of India Act that nationalized the private insurance industry in India.
Over 245 insurance companies and provident societies were merged to create the state
owned Life Insurance Corporation.
Life insurance in India made its debut well over 100 years ago.
In our country, which is one of the most populated in the world, the
prominence of insurance is not as widely understood, as it ought to be. What follows
is an attempt to acquaint readers with some of the concepts of life insurance, with
special reference to LIC.
It should, however, be clearly understood that the following content is by no
means an exhaustive description of the terms and conditions of an LIC policy or its
benefits or privileges.
For more details, please contact our branch or divisional office. Any LIC
Agent will be glad to help you choose the life insurance plan to meet your needs and
render policy servicing.
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What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of death
of the breadwinner.
By and large, life insurance is civilization’s partial solution to the problems
caused by death. Life insurance, in short, is concerned with two hazards that stand
across the life-path of every person:
That of dying prematurely leaving a dependent family to fend for it.
That of living till old age without visible means of support.
Mission
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and
Pride of India."
2.2) History:
Brief History of Insurance
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss and
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disaster existed in primitive men also. They too sought to avert the evil consequences
of fire and flood and loss of life and were willing to make some sort of sacrifice in
order to achieve security. Though the concept of insurance is largely a development of
the recent past, particularly after the industrial era – past few centuries – yet its
beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came into existence to
carry the message of insurance and social security through insurance to various
sectors of society. Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more
insurance companies. The United India in Madras, National Indian and National
Insurance in Calcutta and the Co-operative Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were
some of the companies established during the same period. Prior to 1912 India had no
legislation to regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed. The Life Insurance
Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian
companies at a disadvantage.
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The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to
176 companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January, 1956, that life insurance in India
was nationalized. About 154 Indian insurance companies, 16 non-Indian companies
and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the ownership too by
means of a comprehensive bill. The Parliament of India passed the Life Insurance
Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of spreading life insurance
much more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial cover at a
reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organisation servicing functions were
transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of
new business. But with re-organisation happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
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Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s
Wide Area Network covers 109 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some Banks and Service
providers to offer on-line premium collection facility in selected cities. LIC’s ECS
and ATM premium payment facility is an addition to customer convenience. Apart
from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC has
launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner
and closer to the customer. The digitalized records of the satellite offices will facilitate
anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario
of Indian insurance and is moving fast on a new growth trajectory surpassing its own
past records. LIC has issued over one crore policies during the current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting
a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance business. The
same motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps of
security in as many homes as possible and to help the people in providing security to
their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
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1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalised. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
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2.3) Company Profile:
Life Insurance Corporation of India
Type
Public Sector
Industry
Financial services
Founded
1 September 1956
Headquarters
Mumbai, India
Key people
S.K Roy (Chairman),
Sushobhan Sarker (Managing Director),
S.B Mainak (Managing Director)
N.R Guha (Managing Director),
V.K Sharma (Managing Director),
Usha Sangwan (Managing Director)
Life insurance,
health insurance,
investment management,
Revenue
Profit
Total assets
Owner
Number of
mutual fund
US$46,794 million(2012)
US$3,257 million (2012)
1560482 crore(US$240 billion) (2013)
Government of India
119,767 (Mar 2012)
employees
Subsidiaries
LIC Housing Finance
Products
LIC Pension Fund Ltd.
LIC International
LIC Cards Services
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Website
LIC Nomura Mutual Fund
www.licindia.in
2.4) Products:
Insurance Plan
Group Plan
Pension Plan
Unit Plan
Special Plans
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CHAPTER 3
RESEARCH METHODOLOGY
3.1) RESEARCH DESIGN:
To collect data needed to address the above mentioned objectives the
exploratory research design was used.
Exploratory research was design to describe something. It includes surveys and
facts finding enquiries of different kind. The research study is based on collection of
data and analysis to draw the conclusion.
3.2) METHODOLOGY:
The completion of research involved three phases:
First phase: Collection of Secondary and Primary data. Secondary data were
collected from books, magazines and websites, etc. And Primary data was
collected from the structured questionnaire and interview schedule.
Second phase: Pilot study, Actual primary data collection, Editing and
tabulation of data.
Third phase: Data analysis using statistical tools. Inferences, conclusions, suggestions
based on data collected.
3.3) PROBLEM DEFINITION:
The problem to manage employees efficiently and effectively depends
on the behavioral part of the individual which comprised of satisfaction,
dissatisfaction, perceptions and attitude, etc. The concept of satisfaction is not only
associated to Monetary and Motivational Mechanism, however, it is also
interconnected with HR functions like Recruitment, Selection, Induction, Practices
and Performance
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Appraisal and so on. The present study will be carried out with respect to the
impact of the satisfaction levels of employees varies with the systematic or
unsystematic implementation of HRM practices.
3.4) DATA COLLECTION:
Data means information required in the research. There are two types of data
sources, which have been helpful to carry out the research these, are as follows:
Primary data
Primary data are those, which are collected a fresh and for the first time. Primary
data was collected through questionnaires & Interview schedule.
Researcher was collected data from questionnaire.
Secondary data
Secondary data are those, which have already been collected by publication of
Governments, Periodicals of organization, newspaper, books, & internet etc.
In this research process, researcher collected secondary data form newspaper,
books, company website, magazines, etc.
Sampling Universe
The first step in devolving any sample design is to clearly define the set of
objects, technically called the universe.
Sample universe for research was Life Insurance Corporation India, Ltd. Amravati.
Sample Technique
Sampling technique used for selection of sample non-probability,
‘Convenience sampling technique’.
A convenience sample is that where the sample is selected, in part or only a
limited attempt, to ensure that this sample is an accurate representation of some larger
group of population. The classic example of convenience sample is standing at
shopping mall and selecting shoppers as they walk by to fill out a survey. A
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convenience sample chooses the individuals that are easiest to reach or sampling that
is done easy. Hence, convenience sampling was used for the research.
Sample Size
This refers to the number of item to be selected from the universe to constitute a
sample. The sample size was 50 employees for research.
3.5) OBJECTIVE’S OF STUDY:
To examine the trends of HR practices in LIC, Amravati.
To find out the satisfaction levels of employees as a consequence of the HR
Practices in LIC, Amravati
To establish Relationship between HRM practices and satisfaction levels among
Employees.
To study the practices in order to increase the efficiency and effectiveness of its
Human Resources
To assess practices regarding human resource planning and recruitment in LIC.
To identify selection and socialization practices in LIC.
To assess the practices regarding Practices in LIC.
To assess practices of performance appraisal in LIC.
To assess the compensation and benefits related practices in LIC.
3.6) LIMITATION:
The present study is limited to many aspects. It is not possible to take into
consideration each and every criterion in this study.
1) Sample size was 50 respondents due to time and money constraints
2) The study was limited to Life Insurance Corporation India, Ltd. Amravati
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CHAPTER NO 4
DATA ANALYSIS & INTERPRETATION
The data so collected is scrutinized, tabulated and analyzed by the help
of some statistical tools and techniques and finally used for the study purpose.
Following are the major conclusions are drawn by the researchers.
Table No. 4.1 AGEWISE CLASSIFICATION OF RESPONDENTS
Sr. No
Age(in years)
Number of respondents
Percentage
10
15
10
10
05
50
20
30
20
20
10
100
1
2
3
4
5
18-25
26-35
36-45
46-55
Above 55
TOTAL
Sources: Primary Data
Graph no. 4.1 AGEWISE CLASSIFICATIONS OF RESPONDENTS
Number of respondents
10%
18-25
20%
20%
20%
26-35
36-45
30%
46-55
Above 55
Interpretation
From above data it can be concluded that, 30% of the respondent from the age
group of 26-35, 20% of the respondent from the age group of 18-25, 36-45 & 46-55.
10% respondents are from above 55 groups.
Table No. 4.2 GENDER WISE CLASSIFICATION OF RESPONDENTS
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Sr. No
Gender
Number of
Percentage
1
2
Male
Female
TOTAL
respondents
35
15
50
70
30
100
Sources: Primary Data
Graph no. 4.2 GENDER WISE CLASSIFICATIONS OF RESPONDENTS
Number of respondents
Male
Female
30%
70%
Interpretation
From above data it can be concluded that, 70% of the respondents are male
and 30% are females.
Table No. 4.3 WORKING PERIOD OF RESPONDENTS
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Sr. No
Working Period
Number of
Percentage
1
2
3
4
Below 2 Years
2-5 Years
5-10 Years
Above 10 Years
TOTAL
respondents
15
15
10
05
50
30
30
20
10
100
Sources: Primary Data
Graph no. 4.3 WORKING PERIOD OF RESPONDENTS
Number of respondents
No. of respondents
16
14
12
10
8
6
4
2
0
Number of respondents
Interpretation
From above data it can be concluded that, 30% of the respondent working from since
2 and 2-5 years.20% and 10% respondents working since last 5-10 years, Above 10
years respectively.
Table No. 4.4 PRACTICES PROGRAM ATTAINDED BY RESPONDENTS
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Sr. No
1
2
3
4
Number of Program attn.
1
2-3
4-6
More than 6
Total
Percentage
20
30
30
20
100
Sources: Primary Data
Graph no. 4.4 PRACTICES PROGRAM ATTAINDED BY RESPONDENTS
Percentage
30
30
30
25
20
20
20
Percentage
No. of respondents
15
10
5
0
1
2-3
4-6 More than 6
Interpretation
From above data it can be concluded that, 30% of the respondent attended 2-3 & 4-6
Programs respectively. 20% of the respondents attended only 1 & more than 6
Practices programs in a year.
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Table No. 4.5 HR PRACTICES NEED IDENTIFIED BY ORGANIZATION
Sr. No
Identified by
1
2
3
4
By Systematic Analysis
Based on Performance Appraisal
Individual Assessment
Based on Feedback of Superior
Total
Sources: Primary Data
Number of
Percentage
respondents
5
15
15
15
50
10
30
30
30
100
Graph no. 4.5 HR PRACTICES NEED IDENTIFIED BY ORGANIZATION
Number of respondents
16
14
12
10
8
6
5
4
2
0
No. of Respondents
15
15
Interpretation
From above data it can be concluded that, 30% of the respondent says that
there organization identified the Practices need by feedback, performance base and
individual assessment. 10% of the respondents say by systematic analysis.
Table No. 4.6 PRACTICES IS BENIFITED OR NOT
Sr. No
Benifited
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Respondent
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Percentage
15
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1
2
Yes
No
total
35
15
50
70
30
100
Sources: Primary Data
Graph no. 4.6 PRACTICES IS BENIFITED OR NOT
Respondent
Yes
No
30%
70%
Interpretation
From above data it can be concluded that, 70% of the respondents are says that
the Practices program is benefited to them and 30% are says not benefited.
Table No. 4.7 DURATION OF PRACTICES PERIOD IN ORGANIZATION
Sr. No
Duration
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Respondent
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Percentage
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1
2
3
Adequate
Long
Short
total
18
52
30
100
18
52
30
100
Sources: Primary Data
Graph no. 4.7 DURATION OF PRACTICES PERIOD IN ORGANIZATION
Respondent
Adequate
Long
Short
18%
30%
52%
Interpretation
From above data it can be concluded that, 52% of the respondents are says that
the Practices program was long durable, 30% are says durability of the Practices
program was short and 18% said adequate.
Table No. 4.8 SATISFACTION BY THE SCHEDULE OF HR PRACTICES
PROGRAMM
Sr. No
1
Opinion
Yes
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Respondent
24
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Percentage
24
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2
3
No
Can’t say
total
52
24
100
52
24
100
Sources: Primary Data
Graph no. 4.8 SATISFACTION BY THE SCHEDULE OF PRACTICES
PROGRAMM
Respondent
Yes
No
Can’t say
24%
24%
52%
Interpretation
From above data it can be concluded that, 52% of the respondents are says that
the Practices program is not benefited to them and 24% are says benefited and can’t
say.
Table No. 4.9 INFRASTRUCTURE FACILITIES IN HR PRACTICES
PROGRAM
Sr. No
1
2
Facilities
Excellent
Satisfactory
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Respondent
10
10
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Percentage
20
20
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3
Good
4
Un-satisfied
Sources: Primary Data
15
15
30
30
Graph no. 4.9 INFRASTRUCTURE FACILITIES IN HR PRACTICES
PROGRAM
Respondent
Un-satisfied
Good
Respondent
Satisfactory
Excellent
0
2
4
6
8
10
12
14
16
No. of Respondents
Interpretation
From above data it can be concluded that, 30% of the respondent says that
there organization provide good facilities in the place of HR practices program and
30%, 20%, 20%, respondents are says un-satisfactory, satisfactory and excellent
respectively.
Table No. 4.10 TYPE OF HR PRACTICES METHOD FOLLOWES
Sr. No
1
2
3
Method
Number of
Percentage
On the job Practices
Off the job Practices
Both
Total
respondents
25
15
10
50
50
30
20
100
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Sources: Primary Data
Graph no. 4.10 TYPE OF HR PRACTICES METHOD FOLLOWES
Number of respondents
25
20
15
10
No. of Respondents
5
0
Interpretation
From above data it can be concluded that, 50% of the respondent says that
there organization provides on the job Practices, 30% says they provide off the job
Practices and 20% says both methods are use there.
Table No. 4.11 TYPE OF PRACTICES METHOD USE IN CASE OF ON THE
JOB PRACTICES
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Sr. No
Method
1
Job Instruction
2
Coaching
3
Seminar
4
Job Rotation
5
Committee assignment
Sources: Primary Data
Number of
Percentage
respondents
22
21
19
24
16
22
21
19
24
16
Graph no. 4.10 TYPE OF PRACTICES METHOD USE IN CASE OF ON THE
JOB PRACTICES
25
20
15
10
No. of Respondents
22
21
24
19
16
5
0
Interpretation
From above data it can be concluded that, in case on the job Practices, most of
the employee prefer job rotation method, i.e. 24%, 22, 21, 19, 16% respondents likes
job instruction, coaching, seminar and committee assignment.
Table No. 4.12 TYPE OF PRACTICES METHOD USE IN CASE OFF THE
JOB PRACTICES
Sr. No
Method
Number of
respondents
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Percentage
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1
2
3
4
Role plays
Conference
Programmed instruction
Lecture
Total
Sources: Primary Data
22
34
22
24
100
22
34
22
24
100
Graph no. 4.12 TYPE OF PRACTICES METHOD USE IN CASE OFF THE
JOB PRACTICES
35
30
25
20
15
10
No. of Respondents
34
22
22
24
5
0
Interpretation
From above data it can be concluded that, in case off the job Practices, most of
the employee prefer conference, i.e. 34%, 22, 22, 24% respondents likes programmed
instruction, role plays and lecture.
Table No. 4.13 SUPPORTS BY SUPERIOR
Sr. No.
Support
No. of
Percentage
1
2
3
Full
Partial
Not at all
respondent
25
15
10
50
30
20
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Total
50
100
Sources: Primary Data
Graph no. 4.13 SUPPORTS BY SUPERIOR
No. of respondent
Not at all
No. of respondent
Partial
Full
0
5
10
15
20
25
No. of Respondents
Interpretation
From above data it can be concluded that, 50% of the respondent says that
their superiors provides full supports to complete the Practices, 30% says they provide
partial supports and 20% says not at all.
Table No. 4.14 RESPONDENT RATED PRACTICES PROGRAMS
CONDUCTED BY ORGANIZATION
Sr. No.
1
2
3
4
Rating
No. of
Percentage
Convenient
Disturbing
Average
Can’t Say
respondent
10
20
05
15
20
40
10
30
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Sources: Primary Data
Graph no. 4.14 RESPONDENT RATED PRACTICES PROGRAMS
CONDUCTED BY ORGANIZATION
No. of respondent
No. of Respondents
20
18
16
14
12
10
8
6
4
2
0
No. of respondent
Interpretation
From above data it can be concluded that, 40% of the respondent says that the
Practices program was disturbing, 20% can’t say about Practices program, convenient
and average says 30%, 10% respectively.
Table No. 4.15 AREA FOR EMPLOYEE NEEDS PRACTICES
Sr.
Area
No.
1
Company policies & procedures
2
Skill base Practices
3
Problem solving skill
4
Human relation Practices
Sources: Primary Data
No. of
Percentage
respondent
05
15
15
15
10
30
30
30
Graph no. 4.15 AREAS FOR EMPLOYEE NEEDS PRACTICES
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No. of respondent
Company policies & procedures; 10%
Human relation training; 30%
Skill base training; 30%
Problem solving skill; 30%
Interpretation
From above data it can be concluded that, 30% each of the respondent says
that the Practices program will be for the Human Relation Practices, Skills, Problem
solving, and only 10% respondents says for Policies and procedures.
Table No. 4.16 PRACTICES PURPOSE GIVEN TO EMPLOYEE
Sr.
Purpose
No.
1
To increase the product knowledge
2
For handling machine
3
Motivating and encouraging
4
To learn how to convenience people
5
To be well trained in product information
Sources: Primary Data
No. of
Percentage
respondent
10
12
06
04
18
10
12
06
04
18
Graph no. 4.16 PRACTICES PURPOSE GIVEN TO EMPLOYEE
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20%
For handling machine
To increase the product knowledge
36%
Motivating and encouraging
To learn how to convenience people
24%
To be well trained in product information
8%
12%
Interpretation
From above data it can be concluded that, 36 % respondents said Practices
purpose to be well trained in product information and documents, 20, 24, 12, 8%
respondents said to increase the product knowledge, for handling machine, motivating
& encouraging, and to learn how to convenience people.
Table No. 4.17 IMPROVEMENT IN EMPLOYEES AFTER PRACTICES
Sr. No.
Improvement
No. of
Percentage
1
2
Sources: Primary Data
Yes
No
respondent
30
20
60
40
Graph no. 4.17 IMPROVEMENT IN EMPLOYEES AFTER PRACTICES
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30
25
20
No. of Respondents
15
No. of respondent
10
5
0
Yes
No
Interpretation
From the above data it can be conclude that, 60% respondents are says
improvement after Practices and 40% says there is no improvement after the Practices
program.
Table No. 4.18 PRACTICES REDUCES ABSENTEEISM IN EMPLOYEES
Sr. No.
1
2
Sources: Primary Data
Reduction
No. of
Percentage
Yes
No
respondent
30
20
60
40
Graph no. 4.18 PRACTICES REDUCES ABSENTEEISM IN EMPLOYEES
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30
25
20
No. of Respondents
15
No. of respondent
10
5
0
Yes
No
Interpretation
From the above data it can be conclude that, 60% respondents are says
reduction in absentee after Practices and 40% says there is no reduction in
absenteeism after the Practices program.
CHAPTER NO 5
FINDINGS, SUGGETIONS & RECOMMONDATIONS
5.1) FINDINGS:
Most of the employees in Life Insurance Company Ltd. have attended more than 6
programs in a year.
1. In this research, mostly respondents from the age group of 26-35 years, i.e.
30%.
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2. Mostly males were involved in this process.
3. 30% respondents working since last 2 years.
4. Mostly the Practices needs of employees are identified by performance
appraisal.
5. 70% respondents tell that, Practices was benefited to them.
6. 52% respondents said that, Practices period in the organization was lon period.
7.
Most of the employees in the organization are not satisfied with the duration
and schedule of Practices program.
8. 30% of the respondents were said well to the infrastructure facility.
9. Normally company adopted on the job Practices method but sometimes it
adopted off the job Practices method.
10. In case of on the job Practices, job rotation, job instruction, coaching,
committee assignment and seminar were arranged by the organization. 24%
respondents like job rotation method.
11. In case of off the job Practices, role play, conference, programmed instruction
and lecture were arranged by the organization. 34% respondents like
conference method.
12. Fully support was provided by the superior to the juniors.
13. 40% respondents said that Practices program was disturbing to them in
working.
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14. Practices programs was mostly arranged to provide the knowledge about
problem solving. This involved 30% respondents.
15. Practices helps to improve the performance of the employees hence they can
avoid mistakes on the job and can handle job with confidence. But mostly
respondents said Practices purpose was to be well trained in product
information and document.
16. The competitive level of the employees increases after the Practices program.
17. Practices help to reduce the absenteeism of the employees.
5.2) SUGGESTIONS & RECOMMONDATIONS:
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1. In today’s competitive world, attitude is the factor which is dividing line
between failure and success. Thus recruitment of the employees must be made
not only on the basis on skills and knowledge but also attitude of the
employees. If the employees have positive attitude, Practices can be more
effective.
2. The Practices records must be properly preserved maintain and updated
timely.
3. Proper care must be taken while selecting the trainer.
4. Practices should be performed as a continuous planned activity.
5. New and different trainer should be invited so that maximum impact can be
derived from the Practices program.
6. The company must take care of creating the awareness about the product and
service among the advisor/consultant.
7. Practices program should be made more innovative and interesting to attract
the employees.
8. Employee should not restrict themselves to work within limited area.
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