“EVALUVATIVE STUDY ON HRM IN INSURANCE SECTOR”

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Banking & Insurance) Semester VI
Under the Faculty of Commerce

By
ADITYA SHINDE
Roll No. 46

Under the Guidance of

MR. RAJIV MISHRA

N.E.S RATNAM COLLEGE OF ARTS, SCIENCE AND COMMERCE

NES COMPLEX, NHS MARG,
Bhandup (W), Mumbai-400078
 Declaration by learner

I the undersigned Mr ADITYA SHINDE here by, declare that the work
embodied in this project work title “EVALUVATIVE STUDY ON HRM IN
INSURANCE SECTOR” forms my own contribution to the research work
carried out under the guidance of MR. RAJIV MISHRA is a
result to my own research work and has not been previously submitted to any
other university for any other degree / Diploma to this or any other university.
Wherever references has been made to previous work for any others, it has
been clearly indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

____________________________________
MR. ADITYA SHINDE

Certified by
__________________________
MR. RAJIV MISHRA
 N.E.S RATNAM COLLEGE OF
ARTS, SCIENCE & COMMERCE
BHANDUP (W) , MUMBAI – 400078

CERTIFICATE
‘A’ GRADE
NACC Re-accredited
(3rd CYCLE)

This is to certify that MR._ADITYA MACHINDRA SHINDE _

Of B.COM (Banking & Insurance) Semester VI (2021 – 22)
has successfully completed the Project on “EVALUVATIVE STUDY ON
HRM IN INSURANCE SECTOR” under the guidance of MR. RAJIV
MISHRA.

COURSE COORDINATOR. PRINCIPAL

( Mrs. Riya Rupani ) ( Dr. Mrs. Mary vimochana )

PROJECT GUIDE / INTERNAL EXAMINER

( MR. RAJIV MISHRA )

External examiner. Date

 Acknowledgement

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

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

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to
do this project.

I would like to thank my Principal Inc, DR. MRS. MARY VIMOCHANA for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Course Coordinator MRS. RIYA RUPANI, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide MR. RAJIV
MISHRA whose guidance and care made the project successful.

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

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 INDEX

SR.NO. TOPIC PAGE NO.

1 CHAPTER-1 INTRODUCTION 1

1.1 INSURANCE SECTOR: AN INTRODUCTION 2

1.2 HISTORY OF INSURANCE SECTOR IN INDIA 3

1.3 INSURANCE JOB DESCRIPTION 4

1.4 COMPETENCIES REQUIRED FOR JOB IN 5

INSURANCE
1.5 HUMAN RESOURCE MANAGEMENT: AN 5
INTRODUCTION
1.6 OBJECTIVES OF HRM 8

1.7 SCOPE OF HRM 8

1.8 HRM IN INSURANCE 9

1.9 FUNCTIONS OF HUMAN RESOURCE 11

MANAGEMENT IN INSURANCE SECTOR
1.10 HR PRACTICES IN INSURANCE INDUSTRY IS 18
RESPONSIBLE FOR
2 CHAPTER-2 LITERATURE REVIEW 19

3 CHAPTER-3 RESEARCH METHODOLOGY 27

3.1 OBJECTIVE OF STUDY 27

3.2 HYPOTHESIS OF STUDY 28

3.3 SIGNIFICANCE OF STUDY 32

3.4 LIMITATIONS OF STUDY 33

4 CHAPTER-4 DATA ANALYSIS & 35

INTERPRETATION
5 CHAPTER-5 FINDINGS AND CONCLUSION 58

6 REFERNCE 64

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 INTRODUCTION
Competitive advantage of a company can be generated from human resources (HR) and
company performance is influenced by a set of effective HRM practices. In this study, we
intended to assess the HR practices in insurance companies.

Every organization is composed of people and utilizing their services, developing their skills,
motivating them to enhance their levels of performance and ensuring that they remain
committed to the organization are essential for the accomplishment of organizational
objectives. This is true for all types of organizations - government, business, education,
health, recreation or social action. Organizations that can do this will be both effective as well
as efficient. Inefficient or ineffective organizations face the danger of stagnating or going out
of business.

The emphasis on proper and effective human resource management has increased in the
recent times. It has come to be identified as an important factor in the successful management
of an organization. With the growing importance of knowledge workers to organizations and
the rising expectations of employees, it is essential to have a good human resource
management system in place.

Human Resource Management (HRM) consists essentially of four functions – acquiring,

developing, motivating and retaining human resources. The acquisition function starts with
planning for the number and categories of employees required, and end with staffing. The

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development function has three dimensions – employee training, management development,
and career development.

The motivation function includes identifying the individual motivational needs of employees
and finding ways to motivate them. The retention function is concerned with providing a
work environment conducive to the employees and nurturing them to make them feel
committed and attached to the organization.

Human resources are the most valuable and unique assets of an organization. The successful
management of an organization's human resources is an exciting, dynamic and challenging
task, especially at a time when the world has become a global village and economies are in a
state of flux. The scarcity of talented resources and the growing expectations of the modern
day worker have further increased the complexity of the human resource function. Even
though specific human resource functions/activities are the responsibility of the human
resource department, the actual management of human resources is the responsibility of all
the managers in an organization.

It is therefore necessary for all managers to understand and give due importance to the
different human resource policies and activities in the organization.

Human Resource Management outlines the importance of HRM and its different functions in
an organization.

It examines the various HR processes that are concerned with attracting, managing,
motivating and developing employees for the benefit of the organization.

The insurance sector employers are indulging into aggressive recruitments. With around 15
million new policies being sold every year, the insurance sector is picking up fast in India.

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Due to its robust growth there is a need of skilled professionals in the sector. The employers
are looking forward to hire freshers at junior levels as they are quite flexible and ready to
work as part time employees as well. Apart from hiring actuaries and underwriters, the
industry is focusing on hiring agents. These agents represent the front end of the customer
chain and are responsible for bringing in new business.

1.1 INSURANCE SECTOR: AN INTRODUCTION

Insurance is a form of risk management primarily used to hedge against the risk of a
contingent loss.

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

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

entity buying the insurance.

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

The six principles of insurance are:

1. Indemnity – Insurance is a contract of indemnity where the insurance company indemnifies

the insured against certain risks for a consideration known as premium.

2. Insurable interest – means the loss of which will directly affect the insured.

3. Utmost good faith – means that the insured and the insurance company will not wilfully
hide anything from each other.

4. Mitigation – means the insured will not behave irresponsibly and will take due care so that
the risk of loss or the loss is minimized.

5. Subrogation – means the insurance company acquires legal rights to act on behalf of the
insured i.e. the insurance company steps into the shoes of the insured.

6. Causa Proxima or Proximate Cause – means the proximate cause of loss to ascertain
whether the loss is covered under the policy.

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1.2 HISTORY OF INSURANCE SECTOR IN INDIA

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

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

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

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

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1.3 INSURANCE JOB DESCRIPTION

The insurance job description which is generally assigned to people working in the insurance
industry is given below:

• To handle all the affairs of the customer related to the policies or the services offered by the
insurance company and to resolve any conflicts arising if any.

• To work for insurance company or several insurance companies and finding clients in order
to create awareness about the insurance policies that the insurance company has to offer.

• The job responsibility may include finding out if the claim made by the client for insurance
cover warrantees insurance or not.

• To investigate whether all the premiums were paid on time and whether the claim made
falls in the particular insurance policy.

• To meet potential customers and sell them the insurance policies being offered by the
insurance company.

1.4 COMPETENCIES REQUIRED FOR JOB IN INSURANCE

Any Insurance job seeker must possess the following set of skills:

• Public Speaking: A good insurance professional should have strong communication as well
as public speaking skills.

• Computer knowledge: Basic knowledge of computers including Microsoft Word,

WordPerfect, Outlook, Excel, PowerPoint, Tally etc. would prove to be an asset.

• People skills: An Insurance professional should be able to communicate as well as interact

with other working professional including colleagues as well as clients of the company.

• Organisational skills: As an insurance job includes organizing work it is necessary to have

good skills in this department.

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1.5 HUMAN RESOURCE MANAGEMENT: AN INTRODUCTION

“Human resource management (HRM) is planning personnel needs; recruiting, selecting,

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

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

Human resource is one of the natural resources of any country's economy. It is the wealth of
the country. In the context of banking, human resource is of greater importance. The
deployment of human resource through proper and efficient selection, training and
development, is called Human Resource Management.

The success of any organization largely depends on efficient human resource management,
apart from operations, marketing and sales, the HR department manages all the efficient
people working in operations and marketing divisions in any organization.

Thus, HRM refers to a set of programmes, functions and activities designed and carried out in
order to maximize both employees as well as organizational effectiveness.

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Human resource management is based on four fundamental principles:

1. Human resources are the most important assets important assets an organization has
and their effective management is the key to its success.
2. Organizational success is most likely to be achieved if the personnel policies and
procedures are closely linked to corporate and strategic plans.
3. Organizational culture, values and climate significantly influence managerial
behaviour and exert a major influence on the achievement of excellence. Hence,
continuous effort is needed starting from the management in order to make the
organisational culture acceptable.
4. Human resource management is concerned with integrating all members of the
organization involved and working together with a sense of common purpose.

An organization is driven by human capital and the quality and effectiveness of the
organization is determined by the quality of the people that are employed. The
resources of men money material and machine are collected and coordinated through
people. Without people organization cannot exist. Success for most organizations
depends on finding the employees with the skills to successfully perform the tasks
required to attain the company’s strategic goals.

Management decisions and processes for dealing with employees are critical to ensure
that the organization gets and keeps the right staff. HRM may be defined as a set of
policies practices and programs designed to maximize both personal and
organizational goals and the process of binding people and organizations together so
that the objectives of the each are achieved.

Some definitions of HRM are as follows:

“HRM is the management function that is concerned with getting, training, motivating
and keeping competent employees.”

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

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

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

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

related activities to the strategy of a business or organization. HRM is often referred
to as "strategic HRM".
It has several goals:
• To meet the needs of the business and management (rather than just serve the interests
of employees.
• To link human resource strategies / policies to the business goals and objectives;
• To find ways for human resources to "add value" to a business;
• To help a business gain the commitment of employees to its values, goals and
objectives.

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1.6 OBJECTIVES OF HRM

1. SOCIETAL- To be ethically and socially responsible to the needs and challenges

of the society.

2. ORGANIZATIONAL-To bring organizational effectiveness and serve other

departments.

3. FUNCTIONAL- To do the optimal utilization of the resources and respond to the

need of the organization.

4. PERSONAL-To assist employees in achieving their personal goals to motivate

and retain them thereby, enhancing the individual’s contribution to the
organization.

1.7 SCOPE OF HRM:

The scope of HRM is very vast. It is connected with all major activities in the
working life of a worker. HRM is connected with every other department as human
resources are the requirement for all departments in the organization.

HRM covers the following areas:

o Human resource planning

o Job analysis and design
o Recruitment and selection
o Orientation and placement
o Training and development
o Performance appraisal
o Compensation management
o Career planning, promotions and transfers
o Motivation and communication
o Employee welfare
o Human resource inventory

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 o HRIS- Human resource information system
o Employee safety and health

2. ORGANIZATIONAL-To bring organizational effectiveness and serve other

departments.

3. FUNCTIONAL- To do the optimal utilization of the resources and respond to the

need of the organization.

4. PERSONAL-To assist employees in achieving their personal goals to motivate and

retain them thereby, enhancing the individual’s contribution to the organization.

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1.8 HRM IN INSURANCE

Under present market forces and strict competition, the insurance companies are
forced to be competitive. Contemporary companies must seek ways to become more
efficient, productive, flexible and innovative, under constant pressure to improve
results. The traditional ways of gaining competitive advantage have to be
supplemented with organizational capability i.e. the firm’s ability to manage people.
Organizational capability relates to hiring and retaining competent employees and
developing competencies through effective human resource management practices.

High performance work practices provide a number of important sources of enhanced

organizational performance. HR systems have important, practical impacts on the
survival and financial performance of firms, and on the productivity and quality of
work life of the people in them.

The insurance sector in India has made a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Because of
liberalization and globalisation of Indian economy, the nature of competition both for
final products/services as well as for human resources, has changed. This leaves no
scope for complacency on the part of the organization. Insurance industry players are
not exceptional to this. A few of important relevant human resource management
practices in the context of insurance industry are
▪ Human resource planning is need-based, in that only when the organization
requires a certain skill will hire employees with that skill. Provision is not
made for keeping reserve workforce.
o For selection purpose, skill requirement is prescribed rigidly. In the selection
process, this rigidity is maintained.
▪ Since employees are selected with specific skills to perform specific jobs, job
rotation practice is not followed.
▪ Training is mostly of short-term duration to inculcate skills for performing
specific jobs. The training is mostly on the job and aims at helping the
employee to perform specific assignment. Performance appraisal is highly
formalised in which the immediate superior plays a crucial role. The result of
performance appraisal is not shared with the subordinates.

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 ▪ Internal mobility that is promotion is based on organizational loyalty which
is measured in terms of years of service. Thus, promotion is based in
seniority.
▪ Employee welfare is viewed more in economic terms. The only thing the
organization provides is facilitate environment in terms of physical facilities
at the workplace. No importance committed to strategy adaptable to change
and assimilated in the corporate culture.

1.9 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT IN

INSURANCE SECTOR:

1) Human resource planning (HRP):

Human resource planning is the process of assessing the organization’s human

resources needs in the light of organizational goals and making plans to ensure
that a competent, motivated work force is employed Human resource planning
is very important in these modern times where everything is fluid and changes
are occurring at great speed. Human resource management (HRM or HR) is
the strategic approach to the effective and efficient management of people in a
company or organization such that they help their business gain a competitive
advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives.

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 The overall purpose of human resources (HR) is to ensure that the

organization is able to achieve success through people. They can specialize in

finding, recruiting, selecting, training, and developing employees, as well as

maintaining employee relations or benefits. Training and development
professionals ensure that employees are trained and have continuous
development. This is done through training programs, performance
evaluations, and reward programs. Employee relations deals with the concerns
of employees when policies are broken, such as cases involving harassment or
discrimination. Managing employee benefits includes developing
compensation structures, parental leave programs, discounts, and other

benefits for employees.

THE HUMAN RESOURCE PLANNING PROCESS:-

ANALYSIS OF ORGANIZATIONAL PLANS AND OBJECTIVES

FORECASTING HUMAN RESOURCE REQUIREMENTS 12.

ASSESSMENT OF SUPPLY OF HUMAN RESOURCES

ESTIMATING MANPOWER GAPS

ACTION PLANNING

MONITORING AND CONTROL

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2) Organizational and job design:

An important activity of HRM is developing an organization which caters for

all the activities required, groups them together in a way which encourages
integration, cooperation, and provides for effective communication and
decision making.

Job design is concerned with deciding on the content and accountabilities of

jobs in order to motivate employees and maximize job satisfaction.
Techniques of job design:
a) Work simplification
b) Job rotation
c) Job enlargement
d) Job enrichment

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3) Staffing:

4) Staffing or acquisition of human resources is another activity of human resource

management. Staffing activities determine the composition of an organization’s
human resources.

Staffing activities include: attracting qualified people to the organization,

selecting from among candidates, reassigning employees through transfer,
promotion, or demotion and ultimately managing the employee separation
through resignation, discharge or retirement.

5) Training and development:

The activity of HRM focuses on improving the performance of individuals and

groups within the organization. These activities aim to help employees learn
new skill or refine existing skills.

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Human resource managers must decide which skills or knowledge areas need
development and which methods are most effective for helping employees
acquire skills and knowledge.

Process of training:
a) Identifying training needs
b) Determining training objectives
c) Designing the training programme
d) Implementation of the training programme
e) Evaluation of the training programme

6) Performance appraisal and review:

Performance appraisal and review is an ongoing evaluation of individual and

group contributions to the organization and the communication of those
evaluations to the persons involved.

This HRM function is carried out for a number of purposes: to provide

feedback about performance, to determine the need for training, to make
decisions about promotions, pay increases and so on.

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7) Compensation and reward:

Organizations compensate employees through wages and salaries, bonuses,

and benefits, such as health insurance, vacation time, and pension programs.
The presence or absence of rewards and recognition is important to employee
morale and performance.

Compensation decisions include determining: ensuring fair and equitable pay

differences among employees, designing a pay packages relative to that of its
competitors, forms of compensation and so on.

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8) Employee participation:

This is a relatively new function of HRM. Employee participation focus on

giving employees a voice, sharing information with them and consulting them
on matters of mutual interest.

Employee participation is an important step in establishing industrial

democracy.

Key to successful employee participation:

a) Top management support
b) Employee support
c) Benefits greater than costs
d) Employee ability
e) Employee interests
f) Communication ability
g) Long-term process

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9) Health, safety and welfare of the employee:

The well-being of the employee in an organization is affected by accidents and

ill health-both physical and mental.
Physical health: Ill health of employees results in reduced productivity.
Healthy employees are more productive, more safety conscious, and are more
regular to work. This realization has made many management to provide
health services to their employees like first-aid, complete medical care, etc.
many progressive organizations have well equipped dispensaries with full-
time and part-time doctors.

Mental health: In recent years, mental health of employees, particularly that of

executives, has engaged the attention of management. Mental breakdown are
common in modern days because of stress and tension. This results in reduced
productivity and lower profits for the company. A mental health service is
tendered in following ways:
a) Psychiatric counselling
b) Co-operation and consultation with outside psychiatrics
c) Education of company personnel in importance of mental health
d) Development and maintenance of effective human resource
programme.

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 Safety: Safety refers to absence of accidents. It is protection of workers from
the dangers of accidents.

Need for safety measures:

❖ Cost saving
❖ Increased productivity
❖ Moral and legal

Welfare: Welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages. Welfare
helps in keeping the morale and motivation of the employees high so as to retain
the employees for longer duration. The welfare measures need not be in
monetary terms only but in any kind/forms. Employee welfare includes for
health and insurance against disease, accident and unemployment for the
workers and their families.

1.10 PRACTICES OF INSURANCE INDUSTRY IS RESPONSIBLE

FOR:

• Preparation of HR plans.
• Developing HR policies in the context of overall organizational policies.
• Recruitment, selection and placement.
• Developing HR development system.
• Preparing compensation packages in consultation with top management.
• Devising appraisal system for personnel.
• Developing retention strategies for personnel.
• Integrating people with the organization.

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 CHAPTER-2

LITERATURE REVIEW:

o Cascio 1998:
Job analysis refers to the process by which we understand nature of the job and its
human requirements. Job analysis provides information about why the job is done,
the way it is done, the equipment or machinery used, the skill or training or
education needed to perform the job, the wages paid, the working conditions and
any other special or unique characteristics of the job. Job analysis in many ways is
the first personnel activity that affects commitment and performance. Job analysis
is not a mere formality to be completed but a strategy that should be conducted in
a well thought out and planned manner. It is important that the HR manager in
charge of job analysis conduct it in a systematic and scientific manner has it has
serious effect on the functioning of the organization. According to Cascio a good
practice of HRM in insurance companies ensures the right persons for the right
position who will able to turn organizational opportunities in to productivity.

o Pfeffer 1998:
Pfeffer views that recruitment and selection is that function of HRM which
ensures the success and growth of an organization by taking the employee inside
the organization. Recruitment is the first step towards procuring qualified
applicants for the organization. The recruitment process should ensure that for
every position available in the organization, there are sufficient number of
qualified applicants. In very large organization recruitment is the continuing
process that demands extensive planning and effort. Top performing companies
devote considerable resources and energy to creating high-quality selection
systems.

o Anupama Gupta 2010:

Anupama Gupta explained the consequences of the challenges faced by the human
resource management in context with the current economic status and the
challenges faced should be taken in consideration. This article insists on the

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 challenges in the short fall of talented employees. She also stated that on how
human resource management tackles the problems handled on a day to day
activities. It also suggested some important points to handle things better.

o Saini R.R 2010:

This article explains management in LIC (life insurance company) which is a case
study of Chandigarh state which elaborates HRD rules and regulations. Basically
this study explains the hurdles in the process of framing the rules and process of
executing it. This study contains a sample size of 100 people and analysed their
opinion about HRD rules and regulations. As a result of this study is qualification
plays an important role in recruitment in top, middle, and low level management.
The practice of selecting right candidate for the level of management helps the
organization to achieve more and retain employees in the organization.

o Kundu. Subhash C, Divya Malhan 2009:

In their article on “Human Resources Management Practices in Insurance
Companies” the study was made on Indian and MNCs and explains the benefits of
the organization is generated only by human recources. However the advantage of
giving insurance to the human resources is one of the employee benefits issued by
the Human Resources Management. The findings of the study states that both
domestic and international insurance companies have to improve more on their
HR practices like performance appraisal, HR planning and recruitment.

o Guest 1997:
Stated that the nature of HRM, and especially the justifications for the specific
lists of practices of HR, the nature of organizational performance, and the
connection between HRM and performance. A representation is presented with in
which to discover these linkages. The literature on HRM and performance is
Reviewed in the glow of this analysis to identify critical gaps in knowledge and
help to focus further on the research priorities. The Human Resource Management
policies and practices of an insurance company are usually complied in the form
of a personnel manual. The personnel manual is simply the company’s human
resource policies written in to a usable guidebook for its employees. The
personnel manual not only states the policy towards the various phases of the
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 employer-employee relationship, but it also indicates how the policy is to be
administered. Each manager and supervisor should be able to use this manual as a
guidebook when he or she needs to apply the company’s policy in a given
situation. The personnel manual describes the company’s policy, philosophy,
objectives, practices and procedures, programs, responsibilities of different
individuals in the company.

o Petrescu & Simmons 2008:

Found the numerous HRM practices lift workers overall job satisfaction and their
level of satisfaction with pay. However, this efforts are only crucial for non-union
members. Satisfaction with pay is superior, where performance related pay and
seniority-based reward systems are in place. Job satisfaction may be described as
the positive and negative feelings that individuals have toward their job.
Employees have high levels of job satisfaction when they enjoy their work and
find it interesting. Employees find their jobs more interesting when they are
provided with training, task variety, and control over their work. Petrescu &
Simmons have also found an interesting relationship between pay and job
satisfaction. For poor people pay has a strong impact on their overall job
satisfaction and happiness. But the impact of money or pay as a job satisfier
reduces and almost dis appears after an individual reaches a certain level of
comfortable living. Individuals who are generally happy are found to be more
satisfied with their jobs.

o Das and Vijayalaxmi 2015:

Point out that the problem of employee turnover increasing particularly at the
inferior level, majority of the employees are satisfied with the insurance company
policies. The human resource management practices, which were declared in
connection with employee turnover, were detected and described its effect on
employee turnover. By conducting two separate expert surveys, the initial
information about the spread of some identified human resource management
practices and the potential effectiveness are required and analysed. But still
improvement is required in some of the HR domain like performance appraisal,
job design, perks and benefits, work-life balance etc. are the main findings of the
study. The article concludes the human resource are an essential asset and the
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 success level of any organization ultimately depends on how efficient and
effective its human resources are.

o Anitha & Kumar 2016:

They reveal that the training is given to the employees in the private insurance
sector, Coimbatore district improves the performance level of the employees. The
increase is formed in employee productivity after the training. The education
level, staff category and the work experiences of the employees are the factors
determining the growth of employee’s performance in the organization after the
training. Human resource is considered an essential resource in an organization.
The employees should be offered with proper training to improve their efficient
and effective functioning in an organization. Training is basically the management
of learning. This is achieved either by providing new knowledge and information
relevant to a job or by teaching new skills with new attitudes, values, motives and
other personality characteristics. Training prepares employees to perform their
present job even better and more efficiently. It also prepares the employee for
higher positions with increased responsibilities. Employees who have received
training and know their job well are a confident lot.

o Herzberg 2003:
Herzberg identified several motivators associated with employees maintaining
high job satisfaction. These identified hygiene factors include working conditions,
salaries and benefits, job security, quality of supervision, greater inter-personal
relationships, company policy and administration and work life balance. He found
that once these factors are implemented well by HR managers, job satisfaction is
high, and dissatisfaction becomes avoidable. Herzberg also identified a set of
motivating factors: sense of personal achievement, status, recognition, promotion,
growth, opportunity for advancement, responsibility and challenging work. When
in place, these factors can result in high motivation, high job satisfaction, and
strong commitment among employees. Collectively, the approaches reviewed
explained the logic associated with reasons for employee turnover and what may
encourage employees to stay in their positions.

o Huang & Tansley 2012:

26
 This article stated that the talent management has become the focus of
recruitment, human resources managers. Talent management encompasses all
organizational activities with the intention of attracting, selecting, developing and
retaining the best employees in strategic roles. Human resources managers must
reposition the HR function to inform and support decision-making by
organizational leaders. Providing managers with the tools and analysis they need
to make informed hiring decisions could increase employee retention. They
examined the talent management concept from different perspective. They
researched how talent management encompasses the presence of a quality
workforce maintained through rewards, recognition and performance
management. Talent management and human capital management are very similar
concepts with slightly different purposes. Human capital management means the
recruitment of skilled individuals and views individuals as assets. Talent
management on the other hand requires a quality workforce maintained through
rewards, recognition and performance management.
.
o Flaxington 2013:
In his study he stated that employees can be an organization’s largest asset and
can effect the profitability and productivity of the company. Employee retention is
the major goal of employees because the cost of employee turnover, particularly
talented employees can be significant. As the result of turnover, the disruption of
productive, informal networks and critical collaborations, especially when the
employees are well connected could be more damaging to an organization than the
financial loss. His study revealed that employee turnover is a large unknown cost
an organization faces. Employee turnover can costs company 30% to 50% of an
entry-level employee’s annual salary. The financial expense associated with
recruitment of a replacement and any benefits offered to the employee during
his/her employment are additional losses. The losses experienced continue to add
when organization consider training costs, the expenses of hiring a replacement
with comparable knowledge and skills that is allowed foe new employees.

o Levoy 2014:
Levoy stated that managers should consider bringing back high performers who
were previously employed by the organization. Highly skilled employees who left
27
 the organization on good terms or for personal reasons beyond their control can be
a less expensive hiring option. Again hiring employees can significantly reduce
cost associated with recruiting, hiring, and training. These employees usually
requires less of learning than those who have not worked with the organization
previously. When high performers return to a previous organization, they can
exhibit increased company loyalty. These employees can show are employees
who may be considering that leaving the organization may not always be the best
solution for long-term.

o Wallace & Gaylor 2012:

Wallace and Gaylor asserted that many reasons justify why employees leave their
organization. Compensation, a healthy work-life balance, and relationships with
management and just a few. Employees have varying backgrounds that uniquely
qualify them for job opportunities. The experience employees have prior to
joining organization can determine the employee’s suitability for the position and
their likely success with in a particular role. They also asserted that that the
fundamental premise for employee turnover functionally begins with recognizing
that different employees represent different values to the organization. Employee
turnover by high performers was deemed as dysfunctional turnover while
employee turnover by low performers was deemed as functional turnover.
Because high performers have more value to the organization, their decision to
leave creates dysfunction regarding both experiences and costs associated with
their departure low performers are considered as such because they are ineffective
at their job in some way. Low performers who leave the organization presents an
opportunity to hire a more skilled and experienced employee.

o Misra, Rana and Dixit:

In their research they stated about the work environment. Work relationships are
just a much a part of the work environment as are employees and managers. A
positive, friendly work environment can help keep employee satisfied and
engaged. Employees expected to work somewhere that is physically clean and
comfortable, but that also offers a variety of responsibilities and support. The
basis for any insurance company’s climate is how its employee psychologically
identify with its practices and procedures. The ethical climate of an insurance
28
 company is created when employee perception of a company’s internal ethics
satisfy expected standards and norms. The ethical climate regulates employee’s
actions and words by acting like a guide for employee behaviour by reflecting the
company’s ethics and morals. When an company’s ethical climate does not reflect
positive morals with specific policies and procedures, employees may consider
leaving position. When the ethical climate does not produce an environment of
trust among employees and HR managers, then employees may consider
resigning. So it a duty of HR managers to be friendly and kind with employees.

o Alhamwan & Mat 2015:

They wrote about the compensations that compensation components such as merit
pay, incentives, non-financial rewards and organizational justice could affect job
satisfaction level, which in turn could affect turnover intention. Employees may
begin to compare their current work situation to those they have been a part of in
the past when they become dissatisfied with their jobs. If employees are unable to
determine what is causing their job dissatisfaction and how to overcome it, they
may consider leaving the company. Alhamwam and Mat stated that when
employees perceive that they are treated fairly and appreciated they give more of
their time and creative energy, which directly influences organizational and
individual performances. When employees perform well individually, productivity
within the organization should increase, hopefully increasing company profits.
Employees want to know that they are fairly compensated for their work and that
they are valued for what they contribute to the company.

o Muse & Wadsworth 2012:

Employee benefits can act as the deciding factors when job candidates accept job
offers. The lack of comprehensive benefits package often leads to candidates
declining job offers. Many insurance companies have shifted to total reward
programs. These programs are used to incorporate the idea of a total compensation
package that include all compensation and benefits. Muse and Wadsworth
examined how the perceived value of traditional and non-traditional benefits may
influence the employee-employer relationship, which might be linked to job
performance and turnover intensions.

29
 CHAPTER-3

RESEARCH METHODOLOGY

Particularly in this project both primary and secondary method have been used. In
primary data survey regarding HRM in insurance sectors have been done. Questionnaire
was of mainly related to insurance policies and employees relation with their HR
manager. Because of pandemic survey was done through online with the help of google
forms. Secondary data was used to collect information from various magazines,
newspapers and websites regarding HRM in insurance sector. Most of the information
has been collected and compiled from various issues of annual reports and different
publications in newspapers like the Economic Times.

3.1 OBJECTIVE OF STUDY:

The present study aims at the HR practices in insurance sector. Following are the
objectives of the study.
1. To study the existing HRM climate prevailing in the insurance sector of India.
2. To study the policy of training and development and its effectiveness of Indian
insurance companies.
3. To find out the various policies and schemes of insurance companies.
4. To review the presence and implementation of human resource management practices
in insurance companies.
5. To assess practices regarding human resource planning and recruitment.
6. To identify selection and socialization practices in insurance companies.

30
 7. To assess practice regarding training in insurance companies.
8. To assess the compensation and benefits related practices in insurance companies.
9. To identify the workforce diversity and contemporary HR practices being
implemented in insurance companies.
10. To assess and compare the HR practices being implemented in Indian and
multinational insurance companies.
11. To assess the difference of perception of male and female employees regarding HR
practices being practiced in insurance companies.
12. To assess the interactive effects of type of insurance companies and gender on HR
practices.
13. To study about job satisfaction.
14. To assess how HR managers make strategies to bring back the talented employees to
the company.

3.2 HYPOTHESIS OF STUDY:

The following are the hypothesis of the study HRM in insurance sector.

H1 HRM is not applicable in insurance sector.

H2 Insurance sector and HRM can go hand in hand.

H3 Indian and multinational insurance companies do differ on HRM practices.

H4 HRM does not have impact on insurance sector.

H5 HRM is important for insurance sector.

1. HRM is not applicable in insurance sector.

o HRM is not applicable in insurance sector because of the expenses.
o Expenses such as health-care benefits, training costs, hiring process costs.
o After providing these services of health care benefits, training costs, hiring
process to the employees and if the employees leave the job then the insurance
company will face a huge loss.

31
 o HRM is basically a time consuming in insurance sector.
o HRM generally requires HR managers to collect all sorts of information from
employees with respect to their functioning.
o So, collecting all this data from all departments can highly time-consuming.
o In order to facilitate insurance sector in functioning effectively, HRM suggests
solutions like training, bonus, VRS etc.
o Therefore, implementing HRM solutions can be highly expensive in insurance
sector.
o HRM in insurance sector has to face internal as well as external pressures which is
a very tough job for HR managers and many of them fail to face such problems.
o Internal pressures such as infrastructure, workforce planning, cost management,
training and development.
o External pressures such as government regulations, changes in market conditions,
changing employees, and customer demographics.
o Hence, because of these all reasons HRM is not applicable in insurance sector.

2. Insurance sector and HRM can go hand in hand.

o There are many changes in the insurance sector on account of changes in the
industry due to the entry of new insurance companies.
o Therefore, it has become a necessity to recruit, train and deploy people at all level
effectively, for better performance and success.
o These all can be done only through HRM.
o HRM is a continuous process, involving selection, recruitment, training on an
ongoing basis for the staff and their deployment in the right place.
o The crucial factors behind successful insurance companies will be continuous and
sustained build-up of skills, knowledge, education, proper training and attitudes
among people working in the insurance companies.
o It is possible only through professionalism, which is internal part of HRM.
o The staff should be motivated and encouraged to practice professionalism for their
personal growth and thus contribute to the company’s growth.
o Building efficiency is largely dependent on the best selection process adopted by
the HR development.

32
 o There is imperative need to build-up skills within an organization for the
successful managing of available HR.
o Insurance companies have vast human resource specialized in multiple disciplines
like technology, law, sales, underwriting, administration, risk management etc.
o So, to achieve success insurance sector and HRM can go hand in hand.

3. Indian and multinational insurance companies do differ on HRM practices.

o In multinational insurance companies HRM is done at international level.
o In Indian insurance companies HRM is done at national level.
o HRM in multinational insurance companies is concerned with managing
employees belong to many nations.
o Whereas Indian insurance companies is concerned with managing employees
belonging to one nation that is India.
o International HRM is very complicated as it is affected heavily by external factors
such as cultural differences and institutional factors.
o Human resource managers working in the multinational insurance companies face
the problem of addressing HR issues of employees belonging to more than one
nationality.
o This problem is not faced by the human resource manager working in Indian
insurance companies.
o There are more risks involved in multinational insurance company’s HRM
practices than in Indian insurance company’s HRM practices.
o Training and benefits related practices are comparatively stronger in Indian
insurance companies than in the multinational companies.
o Compensation practices are found more competitive and performance based in
multinational insurance companies than in Indian companies.
o Indian insurance company’s compensation practices are broadly based on
seniority basis rather than competitive basis.
o Indian companies are found stronger on performance appraisal practice than
multinational companies.
o Therefore, because of so many differences Indian and multinational insurance
companies do differ on HRM practices.

33
4. HRM does not have impact on insurance sector.
o HRM does not have any impact on insurance sector because HR manager face
many challenges.
o Because of this HRM is not succeed in insurance sector.
o An important challenge that HR manager face is workforce diversity.
o Which means physically disabled persons, retired defence personnel, backward
classes etc.
o Motivation plays a vital role so if motivation is not done properly by HR
managers to the employees then this can create a huge loss for the company.
o If HRM does not focus on the salaries and wages of the employees then there is a
chance of employees leaving the company.
o If the talented employee will leave the company then it will be difficult for the
insurance company to achieve its objectives,
o There is a challenge relating to improving the effectiveness of all managers in the
process of human resource management.
o Because of so many challenges HRM does not have impact on insurance sector.

5. HRM is important for insurance sector.

o Majority of the insurance companies believe that investing in HRM is necessary in
order to strengthen the insurance sector.
o Efficient management of human resources is necessary for the success of a
company.
o Proper HRM practices leads to employee job satisfaction.
o By which the employee’s performance improves which benefits the entire
insurance company.
o HRM strategies include managing change, creating commitment, achieving
flexibility and improving teamwork.
o HRM practices like recruitment and selection, training and development,
performance appraisal, rewards and recognition, organization environment,
employee engagement, and organizational loyalty helps the insurance company to
achieve their targets and goals.

So, it has been proved that HRM plays a very important role in insurance sector.
Insurance sector will be succeed if the HRM practices are done properly.
34
3.3 SIGNIFICANCE OF STUDY:
The main aim of this study on HRM in insurance sector is to access the human
resource management practices being implemented in insurance companies operating
in India. Liberalization in Indian insurance sector has opened the sector to private
competition. A number of foreign insurance companies have set up representative
offices in India and have also tied up with various asset management companies. All
these developments have forced the insurance companies to be competitive. What
makes a firm best is not just technology, bright ideas, masterly strategy or the use of
tools, but also the fact that the best firms are better organized to meet the needs of
their people, to attract better people who are more motivated to do a superior job. In
this manner HRM becomes very crucial.

Human resource system as a set of distinct but interrelated activities, functions, and
processes that are directed at attracting, developing and maintaining a firm‘s human
resources. However, management system of service organizations has gained more
attention than from manufacturing organizations. But effectiveness of management
system is equally important to enhance the operational performance in both types of
organizations. HR practices helps for better functioning of insurance sector and for
suitable growth of this sector. Due to this reason insurance companies must evaluate
the existing HRM practices and amend them, if needed, so that employees can
effectively contribute to operational performance improvement, profit and capture
market share.

This study is designed to encourage social change by redefining communication

levels between employee and employer. By identifying actual employee satisfiers and
sharing these with insurance companies, managers become empowered to revenue the
turnover problem. Insurance companies HR managers can make a commitment to
eliminate negative work factors within their control. Making a commitment such as
this could minimize turnover while creating more work environments facilitated
around trust that offers more security foe working families. When employees trust
their HR managers, the leader-subordinate may become stronger and could result in
increased commitment and productivity.

35
The purpose this study was to explore strategies used to retain talented employees in
the insurance sector. Factors such as working conditions, compensation and benefits,
and the relationship with the management have been associated with employee’s
decisions to leave their positions.

3.4 LIMITATIONS OF STUDY:

The following are the limitations of the study:

▪ Main limitation of the study was to do the survey through online because of
pandemic.
▪ The respondents whether gave the right or wrong responses was difficult to
find out.
▪ Information regarding HRM in insurance sector was not been able to take
from an insurance company itself.
▪ The questionnaire was strictly related to insurance policies and employees
relation with their HR manager.
▪ The respondents who were not an employee were not been able to answer the
questions related to HRM.
▪ It was not possible to go and personally ask employees about their relation
with HR manager.
▪ So whatever they have been responded through online whether right or wrong
that was only taken in to consideration.
▪ Many people were not aware of the different types of insurance policies.
▪ Geographical barrier was also one of the limitations of the study because this
study was done within the Mumbai.
▪ Respondents were very less, only 53 respondents were ther

36
 CHAPTER-4

DATA ANALYSIS & INTERPRETATION

Data analysis and interpretation of the survey on HRM in insurance sector.

1) Age group

AGE GROUP NO.OF RESPONDENTS PERCENTAGE

18 years-25years 32 60.4%

26 years – 30 years 13 24.5%

31 years – 40 years 6 11.3%

45years – 50 years 2 3.8%

Above 50 0 0

Interpretation:
More number of respondents are of 18 to 25 years that is 32 respondents. Above 50
respondents are 0.

37
 2) Occupation

OCCUPATION NO.OF RESPONDENTS PERCENTAGE

STUDENT 5 9.4%

CORPORATE 18 34%

SELF EMPLOYED 7 13.2%

GOVERNMENT EMPLOYEE 3 5.7%

OTHER 20 37.7%

Interpretation:
In the above diagram and chart it is shown that the highest respondents are from other
occupation. The number of respondents are 20. Very lowest respondents are
government employee that is 3 respondents.

38
 3) Income level per month

INCOME LEVEL PER MONTH NO.OF RESPONDENTS PERCENTAGE

20,000 – 30,000 21 43.8%

30,000 – 40,000 18 37.5%

40,000 – 50,000 6 12.5%

50,0000 – 1,00,000 2 4.2%

ABOVE 1,00,000 1 2.1%

Interpretation:
Majority of the respondents are of 20,000 – 30,000. As the majority age group was
also 18 to 25 years so the respondents may be started to work.

39
 4) Do you have an insurance policy?

NO.OF RESPONDENTS PERCENTAGE

YES 46 86.8%

NO 7 13.2%

Interpretation:

46 respondents have said yes they have insurance policy. Only 7 respondents said no
they don’t have. The reason for not having insurance policy may be lack of
knowledge regarding insurance policy, trust issues, fear of risk.

40
5) What type of insurance policy do you have?

TYPE OF NO. OF PERCENTAGE

INSURANCE POLICY RESPONDENTS

PUBLIC 18 34%

PRIVATE 35 66%

Interpretation:
35 respondents have private insurance policy. Whereas, 18 respondents have
public insurance policy. Maybe the facilities are more in private sector
insurance policy as compared to public sector. So people mostly refer to take
private sector insurance policy.

41
6) How many insurance policy do you currently have?

NO OF POLICIES NO OF PERCENTAGE
RESPONDENTS

1 25 49%

2 20 39.2%

3 3 5.9%

4 3 5.9%

5 0 0

MORE THAN 5 0 0

Interpretation:
People with one insurance policy are more as compared to others. 25
respondents have 1 insurance policy. 20 respondents have 2 insurance policies.
Less respondents have 3 and 4 insurance policies. Maybe people are not aware
of the different types of insurance policies so they have only 1 insurance
policy.

42
7) What is the average term of policies you have?

AVERAGE TERM NO OF PERCENTAGE

RESPONDENTS

UP TO 5 YEARS 34 65.4%

ABOVE 20 YEARS 18 34.6%

Interpretation:
In the above pie chart it is clear that up to 5 years of term insurance policies
people refer more than the insurance policies above 20 years. 34 respondents
have up to 5 years of term insurance policies. 18 respondents have above 20
years of term insurance policies. So people might be less interested in long
term investment and choose short term investment more.

43
8) Who influenced you to get an insurance policy?

INFLUENCED BY NO OF PERCENTAGE
RESPONDENTS

FAMILY,FRIENDS & 21 39.6%

COLLEAGUES

INSURANCE AGENTS 22 41.5%

THE MEDIA 0 0

OTHER 10 18.9%

Interpretation:

In the above pie chart, 22 respondents have been influenced to take insurance
policy through insurance agents. 21 respondents have been influenced by
family, friends. 10 respondents have been influenced by other sources. No
respondents has been influenced by the media to take an insurance policy.

44
9) What kind of insurance policy do you have?

KIND OF POLICY NO OF PERCENTAGE

RESPONDENTS

SAVING POLICY 18 34%

ENDOWMENT 0 0
POLICY

WHOLE LIFE 12 22.6%

POLICY

MONEY BACK 14 26.4%

POLICY

PENSION PLAN 1 1.9%

VEHICLE 8 15.1%
INSURANCE

PROPERTY 0 0
INSURANCE

Interpretation:

More respondents have saving policy. 18 respondents have saving policy. 14

respondents have money back policy. 12 respondents have whole life policy. 8
respondents have vehicle insurance. Most of the people refer to take saving

45
 policy because they may be not knowing about the other insurance and don’t
want to take risk.

10) How regularly do you pay your premiums?

PAYMENT NO OF PERCENTAGE
RESPONDENTS

MONTHLY 27 50.9%

QUATERLY 15 28.3%

HALF YEAR 4 7.5%

YEARLY 7 13.2%

Interpretation:

27 respondents pay their premiums monthly. 15 respondents pay premiums on

quarterly basis. 7 respondents pay premiums yearly. 4 respondents pay their
premiums half yearly. So, mostly people pay their premiums on monthly basis
which may be they find easier to pay rather than paying a huge amount at
once.

46
11) Has any of your policies ever lapsed due to non-payment of premium?

POLICY LAPSED NO OF PERCENTAGE

RESPONDENTS

YES 10 18.9%

NO 43 81.1%

Interpretation:
As shown in the above pie chart it is clear that 43 respondents say no that their
policies have never lapsed due to non-payment of premium. Only 10
respondents have failed to pay the premium and their policy has been lapsed.

47
12) Where did you find your insurance agent?

INSURANCE AGENT NO OF PERCENTAGE

RESPONDENTS

THE INTERNET 6 11.3%

ADVERTISEMENT 5 9.4%

RECOMMENDATION 18 34%

INURANCE BROKERS 16 30.2%

SOCIAL MEDIA 0 0

OTHER 8 15.1%

Interpretation:
18 respondents found their insurance agent through recommendation.
16 respondents found their insurance agent through insurance brokers.
Through internet 6 respondents found their insurance agent. 5 respondents
found through advertisement. 8 respondents found their insurance agent from
other sourc

48
13) Would you like to recommend your insurance agent to your friends, family
and colleagues?

RECOMMENDATION NO OF PERCENTAGE
RESPONDENTS

YES 43 81.1%

NO 10 18.9%

Interpretation:
43 respondents said yes that they would like to recommend their insurance
agent to their friends, family and colleagues. But 10 respondents said no they
would not like to recommend their insurance agent to others. They may be not
satisfied with the work of their insurance agent and not like to recommend
them to others.

49
14) What is your job function?

JOB FUNCTION NO OF PERCENTAGE

RESPONDENTS

SUPERVISOR 11 22%

NON SUPERVISORY 7 14%

STAFF

FUNCTIONAL 1 2%
MANAGER

DEPARTMENT 8 16%
MANAGER

CHIEF OFFICER 3 6%

DIRECTOR 0 0

OTHER 20 40%

Interpretation:
In the above chart more number of respondents are from other category. 20
respondents are having other job function. 11 respondents are supervisor in
their company. 8 respondents are department manager. 7 respondents are from
non-supervisory staff. 1 respondent is functional manager. 3 respondents are
senior executive or chief officer.

50
15) Which of the following best describes the department you work in?

DEPARTMENT NO OF PERCENTAGE
RESPONDENTS

CUSTOMER SERVICE 7 14%

FINANACE/ACCOUNTIN 15 30%
G

SALES/MARKETING 9 18%

HUMAN RESOURCES 1 2%

OTHER 18 36%

Interpretation:
18respondents are from other department. 15 respondents are from finance or
accounting department. 9 respondents are from sales or marketing department.
7 respondents are from customer service.1 respondent is from human resource
department.

51
16) How long have you been working for the company?

WORKING YEAR NO OF PERCENTAGE

RESPONDENTS

LESS THAN 1 YEAR 13 26.5%

1 – 2 YEAR 13 26.5%

3 – 5 YEAR 11 22.4%

MORE THAN 5 12 24.5%

YEARS

Interpretation:
In this pie chart the number of respondents who have been working in the
company less than 1 year and between 1-2 years is the same that is 13
respondents. The respondents working between 3-5 years is 11. More than 5
years is 12 respondents.

52
17) How well do you believe your HR manager lives by your company’s ethics?

ETHICAL NO OF PERCENTAGE
BEHAVIOUR OF HR RESPONDENTS

EXTREMELY WELL 13 26.5%

VERY WELL 26 53.1%

SOMETIMES 7 14.3%
DOES,SOMETIMES
DOESN’T

NOT VERY WELL 3 6.1%

Interpretation:
There are 13 respondents who think that their HR extremely well lives by
their company’s ethics. Highest number of respondents that is 26 thinks
that their HR lives very well by the company’s ethics. 7 respondents
think neutral. 3 respondents think that their HR manager not very well
lives with the company’s ethics.

53
18) How often does your manager give feedback to your work?

FEEDBACK BY HR NO OF PERCENTAGE
RESPONDENTS

ALWAYS 19 38.8%

RARELY 21 42.9%

SOMETIMES 7 14.3%

NEVER 2 4.1%

Interpretation:
In the above pie chart, respondents who’s HR manager gives feedback on their
work rarely is highest that is 21. Only 2 respondents are there who’s HR never
give feedback on their work.

54
19) How help has been the feedback given by your HR manager?

HELPFUL NO OF PERCENTAGE
FEEDBACK RESPONDENTS

NOT AS HELPFUL 8 16.3%

SLIGHTLY 20 40.8%
HELPFUL

VERY HELPFUL 18 36.7%

EXTREMELY 3 6.1%
HELPFUL

Interpretation:
Slightly helpful feedback is given to 20 respondents by their HR manager.
Very helpful feedback is given to 18 respondents. Not as helpful feedback is
given to 8 respondents. Extremely helpful feedback has been given to only 3
respondents.

55
20) If you ever offered suggestions to the management, how satisfied were you
with the response?

SATISFIED WITH NO OF PERCENTAGE

THE RESPONSE RESPONDENTS

NEVER OFFERED A 22 46.8%

SUGGESTION

NOT AT ALL 5 10.6%

SATISFIED

VERY MUCH 20 42.6%

SATISFIED

Interpretation:
The respondents who have never offered a suggestion is 22. They might be
thinking that their suggestions won’t be consider by their HR or there may be
other reasons also. There are 5 respondents who have offered suggestion and
not at all satisfied with the response. 20 respondents are very much satisfied
with the response they get from their HR manager after they give suggestion.

56
21) How well does your HR manager respond to your mistakes?

RESPOND TO NO OF PERCENTAGE
MISTAKE RESPONDENTS

EXTREMELY WELL 24 50%

SLIGHTLY WELL 20 41.7%

NOT AT ALL 4 8.3%

Interpretation:
In the above chart there are 24 respondents who’s HR responds to their
mistakes extremely well. Only 4 respondents said their HR not at all respond
to their mistakes.

57
22) Does your HR manager treats you with courtesy and respect?

TREATS WITH NO OF PERCENTAGE

COURTESY RESPONDENTS

YES 44 91.7%

NO 4 8.3%

For this question 44 respondents said yes that their HR manager treats them
with respect. But 4 respondent’s HR manager doesn’t treat them with respect
and courtesy because their relation might be not that much good.

58
23) Does your manager and you have regular meetings on your performance?

REGULAR NO OF PERCENTAGE
MEETINGS ON RESPONDENTS
PERFORMANCE

REGULARLY 22 46.8%

RARELY 20 42.6%

NEVER 5 10.6%

Here, 22 respondents said regularly they have meetings on their performance

with their HR manager. 20 respondents said rarely they have such meetings.
And only 5 respondents said never thy have such meetings with their HR
manager.

59
 CHAPTER- 5

FINDING & CONCLUSION

FINDING:

From the survey it was easy to understand that how many people have insurance
policies. HR employee relationship and many more things. Total 53 respondents has
been responded. In that 86.8% people have insurance policy. 66% people have private
sector insurance policy. This may be because private sector insurance policy services
are good their return is more than public sector.

41.5% people were influenced by insurance agents to get an insurance policy. 81.1%
people also told yes they would like to recommend their insurance agent to others.
But 18.9% told they would not like to recommend their insurance agent.

91.7% people said yes their HR manager treats them with courtesy. From this survey
it was found that 59% people are not satisfied with their HR manager work. They
would not respond them on their suggestions, their HR would not treat them with
courtesy, never give feedback to them.

For building up better efficiency in insurance sector, HRM have to follow the below
two functions:-
✔ Emphasis on job description and job Assignment.
✔ Response to challenges in future.

I. EMPHASIS ON JOB DESCRIPTION AND JOB ASSIGNMENT.

One of the important functions of HR department is to ensure proper definition for
workers in the insurance companies. The staff should know about the vacant positions

60
 and the skills required for those particular jobs. Accordingly, people should be
recruited to that particular job. The allotment of a job to a right person, who has the

required skills is called job assignment. If this function is not properly performed by
the HR department, people in all departments will be in a chaotic situation. This will
impair their performance and subsequently customer service. Improvement in
performance and skills of existing employees can be achieved through recruiting the
right person for the right place. Thus, job description and job assignment are parallel
concept requiring attention.

II. RESPONSE TO THE CHALLENGES IN FUTURE.

Insurance companies should chalk out a wide range of strategic responses to the
future challenges. They have to look into the structure, procedures and processes of
the systems and make policies accordingly, to ensure necessary changes. It is the
foremost function of HRM. Insurance companies have to convince their employees
that that a challenge is an opportunity to prove oneself. Companies in India have to
utilize this opportunity before the competition overtakes them and people in banks
have to respond immediately to the challenges. This requires the HR department to
work efficiently. Insurance companies are in the service industry, where the raw
material is HR. HRM, therefore, emerges as a very basic and important element for
strategic response to the changes that are taking place in the insurance sector. HR
departments should take it seriously to formulate policies to meet these challenges.
HRD is a critical management function. Each manager should have initiative,
awareness, co- ordination and facilitation to perform his role. This is critical function
of HRM.

THE CHANGING INSURANCE ENVIRONMENT and THE ROLE OF HRM

Owing to the changing insurance environment HR department should call for
appropriate response in equipping people who have to perform in the new
environment. People should be prepared to 'accept changes. The upgraded technology
might create fear among the staff regarding their adaptability to the new environment.
It is the responsibility of the HR department to properly counsel people and prepare
them to face the challenges before them.

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Their mind should be fine - tuned to work in the new technological environment. The
main function of HRM is to build up capabilities in people working and intensify their
sense of belonging to the organization. To improve their performance and increase the
bank's productivity HR must incorporate challenges in routine work. Team spirit has
to be inculcated in the branches and greater focus should be on customer care. This
would be possible only through the unprecedented efforts to be put forth by the HR
department.

REWARDS, REMUNERATION, INCENTIVES AND PUNISHMENTS

HR department should make efforts to provide appropriate incentives, rewards and
increase remuneration to employees. Otherwise, dissatisfaction may creep into all
levels of the bank, resulting in" inefficiency, perfunctory attitude, and poor service
standards. These will ultimately affect the functioning of the organization. Therefore,
the HR department has to formulate policies with utmost care taking into account all
these facets.

Radical changes are required in the performance appraisal system to avoid nepotism.
HR policies with regard to manpower and career planning, and placement policies
have to be revamped. A level of professionalism with the help of technology and
scientific management has to be brought in by the HR departments. Clear policies
regarding performance rewards, incentives and increase in remuneration have to be
outlined and implemented. With regard to the accountability for non-performance and
for the mistakes, the HR department's intervention is a must for establishing the facts
of each case. Proper judgment "with impartial attitude helps develop satisfaction
among the staff members.

Before punishing for mistakes and non-performance, a certain kind of enquiry is

required by the HR department. In the present scenario, particularly in the new private
sector insurance companies, dismissals are taking place arbitrarily without proper
enquiry for accountability. This will impart the efficiency of the existing staff and
lower dynamism in their performance, ultimately leading to reduced productivity due
to fear and insecurity of losing the job. It is the first and foremost duty of the HR
department to formulate appropriate policies with regards to punishments. A set of

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guidelines and procedures has to be formulated and followed for punishments to staff
in case of any indiscipline.

There are certain inevitable situations in working where the staff needs to experiment
in order to take decisions. In the process mistakes are bound to occur. Committing
mistake is a way of learning. These are not to be treated as sin by the management.
Otherwise, the decision making process will be vitiated. In such situations the HR
department plays a crucial role in adopting proper strategies and in responding
correctly to the warranted situation. HRM will play a significant role in handling
situations while awarding punishments to employees without impairing others'
efficiency.

Training practices adopted by insurance companies the present study help to

investigate and analyse the current trends, training and development initiatives
adopted in the insurance companies.
⮚ Generally, training is needed at all levels of employees in the insurance sector.
⮚ Usually, training is organized once in quarter or once in every half year in the
insurance companies based on their performance.
⮚ Different types of training methods are used to train the employees like on the
job training and off the job training.
⮚ Most importantly coaching and mentoring method is used to train the
employees.
⮚ Role play and lecture method are part of off job training being used in the
insurance company.
⮚ Induction training is given to the newly hired employees of the insurance
company.
⮚ Knowledge and social skills are the areas where the employees are trained the
most.
⮚ Skills, knowledge and abilities of employees are evaluated before and after the
training programs.
⮚ Insurance companies do organize motivated training for the employees in
order to improve their performance.

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 ⮚ Training arranged by insurance sector help the employees in their career
development and helps them to achieve their day to day activities.

Various HR Practices and Retention strategies Adopted by Insurance Sector:

United India Insurance Company Limited: This Company believes that continuous
learning process can enhance the human being tendency towards the work. This
company started school of learning to train their employees during training sessions
they get practical and real knowledge by studying the current time cases that what is
happening in the present market. Training includes case studies, faculty led sessions,
guest lectures, interactive sessions, group workshop, group presentation, field visits,
on the job training.

TATA AIG Life insurance: This Company set the standards to recruit and place the
employees. Whenever they recruit a new employee they run an induction program for
two days so that the employee get to know his work responsibilities and arranged a
perfect training about his job. This program named as ―WIN‖. Other HR practices as
under:

a) Annual Celebration: Every year employees celebrate their victory for

achieving their targets.
b) Employee Town Hall: Top management meets the employees and discusses
the growth and other important matter with them.
c) The success matrix: This is called a reward program. Every talented employee
is rewarded and recognized for their best work. Best employees name will be
displayed on the ―WALL OF FAME‖ at all branches of the organization
throughout the country.

ICICI Lombard: ICICI Lombard recruits the employees who are perfect for the
organization. They recruit their employees from various universities and set an
amount of 100-120 crore for employees ‘development.

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 BHARATHI AXA Life insurance: BHARATHI AXA recognized that insurance
sector need a circle for its development they are running a program named as
‘EVENT IDEA ‘that mainly focused on house wife for their recruitment and making
them as a part of their organization.

CONCLUSION

A well-defined framework of strategically made HRM practices benefits not only the
organization but also for the employees. Organization should adopt better HR
policies, opportunities for growth in terms of better compensation, benefits, training
and development opportunities, and career management in turn leading to job
satisfaction and self-fulfilment

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

improvement, measured not only in terms of financial indicators of operational
efficiency but also in terms of the quality of financial services provided. Factors like
skills, attitudes and knowledge of the human capital play a crucial role in. determining
the competitiveness of the financial sector. The quality of human resources indicates
the ability of insurance companies to deliver value to customers.

Capital and technology are replicable but not the human capital which needs to be
valued as a highly valuable resource for achieving that competitive edge. The primary
emphasis needs to be on integrating human resource management strategies with the
business strategy. HRM strategies include managing change, creating commitment,
achieving flexibility and improving teamwork. The other processes representing the
overt aspects of HRM, viz. recruitment, placement, performance management are
complementary.

HRM has a crucial role to play in insurance sector. It acts as backbone for the
insurance sector, because it only lays the structure for the organizations operations,
functioning and working. Even with the advent of high technology it will have a
prominent role to portray.

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 REFERENCE:

While undergoing the project for collecting various information’s and details I have
referred the following:

● Books:
1. Human resource management practice
2. Strategic human resource management

● Websites:
1. www.scribd.com
2. www.indianmba.com
3. www.hrmglobal.com
4. http://www.chrmglobal.com
5. http://www.bharatforge.com
6. www.wikipedia.org

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