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HRD MANAGEMENT IN IT INDUSTRY
1.0 INTRODUCTION
1.0.1 Success of every business enterprise depends on its human resource. Money,
material and machines are inert factors; but man with his ability to feel, think,
conscience and plan is the most valuable resource. At the same time human elements
are most difficult to be inspired, controlled and motivated. The upcoming competition
in India, will demand high motivational level of its employees.
1.0.2 Growth of an enterprise is vital for the economic development of the country.
This is possible only by maintaining the enthusiasm and motivation of the employees,
which is vital for carrying out the operations in most efficient manner. The mostsuccessful companies, all over the world have designed their business policies to
achieve higher productivity by using potentiality and strength of people.
1.0.3 The basic aim of human policies is the genuine concern for the people. Proper
design of human policies is based on the higher responsibilities, personal and positive
approach in the total perspective of organisational interest. The world's best
companies have established their strength with their people. The employees identify
themselves with the company they are working for. This also help in building up their
spirit, morale and espirit-de-cops which becomes strength of the company. The
culture of excellence thus nurtured contribute to growth with stability and continuousimprovement in productivity.
1.0.4 Finding the right man for the job and developing him into a valuable resource is
an indispensable requirement of every organisation. Human resources are capable of
enlargement i.e. capable of providing an output that is greater than the sum of the
inputs. Proper recruitment helps the line managers to work most effectively in
accomplishing the primary objective of the enterprise. In order to harness the human
energies in the service or organisational goals, every manager is expected to pay
proper attention to recruitment, selection, training, development activities in an
organisation. Proper promotional avenues must also be created so as to motivateemployees to peak performance. Thus, personnel functions such as manpower
planning recruitment, selection and training, when carried out properly, would enable
the organisation to hire and retain the services of the best brains in the market.
1.0.5 The human resource management is very crucial in respect of information
technology services than other manufacturing or marketing enterprises. The IT
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services are technical in nature and at every stage the human touch is involved. Hence
it is well motivated and devoted manpower which is very much essential for the
success of IT industry.
1.1 ROLE OF HR MANAGERS
1.1.1. And Some industry commentators call the Human Resources function the last
bastion of bureaucracy. Traditionally, the role of the Human Resource professional in
many organizations has been to serve as the systematizing, policing arm of executive
management. In this role, the HR professional served executive agendas well, but was
frequently viewed as a road block by much of the rest of the organization. While some
need for this role occasionally remains you would no want every manager putting his
own spin on a sexual harassment policy, as an examplemuch of the HR role is
transforming itself. The role of the HR manager must parallel the needs of his
changing organization. Successful organizations are becoming more adaptable,
resilient, quick to change direction, and customer-centered. Within this environment,the HR professional, who is considered necessary by line managers, is a strategic
partner, an employee sponsor or advocate, and a change mentor.
1.1.2 Strategic Partner:-In todays organizations, to guarantee their viability and
ability to contribute, HR managers need to think of themselves as strategic partners. In
this role, the HR person contributes to the development of and the accomplishment of
the organization-wide business plan and objectives. The HR business objectives are
established to support the attainment of the overall plan and objectives. The tactical
HR representative is deeply knowledgeable about the design of work systems in
which people succeed and contribute. This strategic partnership impacts HR services
such as the design of work positions, hiring; reward, recognition, and strategic pay;
performance development and appraisal systems; career and succession planning; and
employee development.
1.1.3 Employee Advocate:-As an employee sponsor or advocate, the HR manager
plays an integral role in organizational success via his knowledge about and advocacy
of people. This advocacy includes expertise in how to create a work environment in
which people will choose to be motivated, contributing, and happy. Fostering
effective methods of goal setting, communication, and empowerment through
responsibility build employee ownership of the enterprise. The HR professional helps
establish the organizational culture and climate in which people have the competency,
concern, and commitment to serve customers well. In this role, the HR manager
provides employee development opportunities, employee assistance programs, gain
sharing and profit-sharing strategies, organization development interventions, due
process approaches to problem solving, and regularly scheduled communication
opportunities.
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1.1.5 Change Champion:-The constant evaluation of the effectiveness of the
organization results in the need for the HR professional to frequently champion
change. Both knowledge about and the ability to execute successful change strategies
make the HR professional exceptionally valued. Knowing how to link change to the
strategic needs of the organization will minimize employee dissatisfaction and
resistance to change. The HR professional contributes to the organization byconstantly assessing the effectiveness of the HR function. He also sponsors change in
other departments and in work practices. To promote the overall success of his
organization, he champions the identification of the organizational mission, vision,
values, goals, and action plans. Finally, he helps determine the measures that will tell
his organization how well it is succeeding in all of this.
1.2 LEADERSHIP AND EMPLOYEE INVOLVEMENT.
1.2.1 The main role of leadership was seen as creating a participatory process
for employee involvement, to build collective wisdom. Control has given way tocollaboration and the old paradigm of promoting competition and motivating through
incentives shifted to creating co-operation and oneness amongst people. This is a
marked shift to build effective teams. Research shows that six out of every 10
employees like to work in teams. 87 per cent of all Fortune 500 companies use
parallel teams and about 100 per cent of all companies use project teams.
1.2.2 Story telling and appreciative enquiry are emerging as a new dimension in
positive motivation. Finding out what's wrong seems to be the trend. In Walt Disney,
telling success stories is one of the important methods used to remind people of
greatness and goodness of the organisation. Leaders in Disney concentrate on quality,
values and involvement. Speaking in the plenary sessions, Tom Peters said, " We have
transitioned from an asset-based economy to a talent-based economy. The new
definition of lay-off is untalented go talented stay. Leaders must realise that talent is
equal to brand". His new theory is EVP which means "Employee Value Proposition".
1.2.3 Rosabeth Moss Kanter said, " Human beings are good raw material, they
become assets when you train them to increase their knowledge and skills". She added
that only a few organisations really train people to make them a success. Seconding
this, Mr Peters pointed out how most organisations are not serious about developing
people. They spend on an average 26.3 hours per person per year on training. A
surgeon, a pilot or an athlete on the other hand spends 10-15 times more on training.
1.2.4 He also stated that the HRD department should be renamed TDFD (Talent
Development Fanatic Department) and wealth for this new regime will flow from
innovation, not organisation. Quoting Gary Hamel he said, only those employees will
succeed who are "certified radical". Only those companies will succeed who create a
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cause, not a business. Leaders according to him are living individuals, whom people
can smell, feel and touch. Their passion for work must be infectious.
1.2.5 Another aspect of leadership if the decision to introduce fun in the work
place. Research shows that this reduces absenteeism and builds stronger, deeper and
longer lasting relationships. It appears out of every 100 Fortune companies in the lastdecade, 69 are dead and only 31 are alive. In a Forbes Magazine study of around 100
companies from '17 to '87, only 39 companies were found to survive. Management of
Change:-Research proves that many change models don't consider the human
experience during change. The overriding concern seems to be to downsize. It was
found that most change processes go through four fundamental stages.
People try to resist or deny change
They adapt, participate in the change
They attempt to add value
The culmination or formation of a new status-quo
1.2.6 A number of presentations revealed that leaders who initiate change must do so
with one foot in the future and the other planted in past values. Forgetting tradition
must can devalue existing strengths. The success of a change process depends on the
skill of the facilitator to create a participatory process to enlist the support of people
and address the issue of grief.
1.2.7 E-Learning :- Organisations like Ford Motor, Hewlett Packard, Intel and IBM
are using e-learning to increase the knowledge of their people. Companies like
Fordstar even manage time differences between countries while conducting virtualclass rooms, chats, demos, presentations to communicate new concepts, product
details, core values, issues of governance and corporate communities.
1.2.8 CEO's are talking to their people about new ideas and enlisting their support
through forums and message boards. This is changing the way people behave and
work. The advantages of e-learning are many: It is self-paced, flexible, less expensive,
modular and has a huge reach.
1.2.9 Universities like Cornell, MIT, Stanford, etc, have started emphasizing e-
learning to attract a worldwide audience. Web-centric universities are becoming theorder of the day. William Taylor, editor and managing partner of the Fast Pace
magazine, said, "There is no going back from back from dotcoms". He was of the
opinion that there is a merger taking place between computers and human beings.
1.3 INNOVATIVE PRACTICES IN HR
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1.3.1 The Innovative Practices in Human Resources study uncovered 12 practices that
are reducing HR costs and improving service quality to employees. Key findings from
this research included the need for HR managers to streamline processes, lower
overhead costs, and enable their departments to advance from transactional
organizations to strategic partners in the business.
1.3.2 Practices and technologies include:
Internet and intranet employee services
Strategic human resources
Centralized HR departments and call centers
360-degree performance appraisals
HRIS systems
Employee self-service
Voice response systems (VRUs)
Resume scanning and Internet recruitment Kiosks
Automated time and attendance systems
Team policies and development
Outsourcing
Business process reengineering (BPR)
1.4 LINKING PAY TO PERFORMANCE
1.4.1 Most Human Resource professionals are familiar with the concept of strategy.
There is much more concentration and focus today on the strategic outcomes of
human resource activity than ever before. The area of compensation is no exception.
1.4.2 Pay for performance systems are becoming more and more popular as senior
managers reach beyond the use of compensation systems to deliver pay. There is far
more interest in more closely linking the reward mechanisms to the achievement of
corporate objectives. Motivation for superior performance is the goal.
1,4.3 In experience, most organizations will profess to a "pay-for-performance"philosophy as a keystone of their compensation system. Such a system requires solid
grounding in a clear and documented link between performance and salary increases.
Unfortunately, the link between individual performance and pay is frequently
nonexistent - "merit" pay is a hollow concept in this regard.
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1.4.4 A merit system demands that managers be willing to make distinctions in merit
increases based on performance. However, several factors get in the way of this
happening. First, the annual salary change is usually a small percentage. Giving the
better performer 2% more than the cost of living has little motivation or recognition
attached to it. Similarly giving the poor performers 2% less than the cost of living
increase is not that much of a penalty. So many managers don't make that distinction -it is too much hassle. So everybody gets the same increase.
1.4.5 Second, most performance appraisal systems are after-the-fact appraisals. In
other words, at appraisal time, which is usually toward the end of the year, managers
are required to evaluate the performance of their staff. It means sitting down and
trying to reconstruct what each staff member did, capturing it in a non-threatening
way, communicating the evaluation without a fuss and finally, making a merit
increase recommendation. Sound like a familiar pattern? It is a process that repeats
itself year after year.
1.4.6 The end result is usually a lot of avoidance behavior. Managers avoid the
appraisal process like the plague. Although employees profess to want to "know
where they stand" they often take issue with the appraisal. Besides, they don't listen to
the evaluation, they wait until the penny literally "drops". "What is my rating and how
much do I get?" is a constant theme in merit systems where salary decisions are tied
so closely with the appraisal process.
1.4.7 You might well ask is there any way out of this mess? The answer is fortunately
yes. Organizations that are the best and want to separate themselves from the rest, are
turning away from the merit system and toward an annual incentive system,
particularly for middle and upper management positions but increasingly for teams
and individuals lower down in the organization as well.
1.4.8 They are adopting a system of annual incentive bonuses linked directly to the
achievement of corporate and individual objectives in three specific areas. The areas
are corporate revenues and gains, cost containment and behavioral changes. The first
two areas are quantitative and the third area, which is gaining in importance, is
qualitative in nature, and has a great deal to do with building managerial and
individual competence.
1.4.9 Why Is This Transition Occurring? :-Well, there are many challenges facing
businesses today and these challenges are driving them to find better ways of linking
pay and performance to the achievement of corporate results..
1.5 CHANGING JOB DESIGN IN IT COMMUNITY
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1.5.1 The California State University (CSU) system is being challenged to meet
increasing demands for educational and administrative services through the innovative
use of technology and human resource systems. Even though funding levels for higher
education have been cut in recent years, public/taxpayer expectations and the demands
for quality education, access, service, and accountability have grown. Technology
initiatives within the CSU have resulted in significant advances and improvedtechnical capabilities and efficiency. Human resource and organizational systems are
also needed to capitalize on and thrive in this rapidly changing work environment.
1.5.2 In 1991, the CSU began a study to look at alternative work and job design
approaches to meet these challenges. The study focused on the information
technology community and how work processes and activities could be better
organized to remove artificial barriers and improve organizational effectiveness, a
process often associated with the term "reengineering." Secondly, the study focused
on developing a job design approach that could adapt to changing skill requirements
and that would promote the continuous acquisition of skills for knowledge-based
employees in information technology. The goal of improved organizational
effectiveness and an orientation towards reengineering and skills guided the
development of the proposed job design approach.
1.5.3 This article begins by identifying several trends that led to the study, then
describes the overall project within the context of an organizational effectiveness
equation. A new job design approach that was proposed as a result of the study is
presented, including a new classification structure and competency dimensions and
measures for defining and evaluating positions. Finally, other supporting systems are
described for an integrated human resources approach. The development phase of the
project has been completed, and the CSU anticipates entering into negotiations with
its employee representatives in the near future.
1.5.4 Three trends have had a direct impact on the development of a strategic job
design approach for the information technology community at the CSU: (a)
diversification and convergence of technology, increased demand for educational
access and (b) changes in instructional delivery methods; and changing work place
demands and priorities.
1.5.5 The technology demands within higher education lead to a complex and
dynamic computing environment. Academic and administrative computing strategies
tend to be at cross-purposes in terms of defining systems requirements. This has
resulted in widely diverse systems and technology within and across the CSU's twenty
campuses. Increasingly, however, campus systems are becoming more integrated, as
data are shared across multiple platforms on a network "highway" that is linked to
external information sources. Networking and desktop computing have removed
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traditional boundaries for information access, research, and decision-support
purposes. Data, voice, and video technologies continue to be combined in more
interactive and user-friendly formats.
1.5.6 In terms of educational trends, many institutions offer distance learning using
various transmission media and are incorporating instructional technology intocurriculum development. Students expect guaranteed access to technology and to
research databases, and this access has become an issue of social responsibility.[1]
Library and computing functions are becoming increasingly interdependent in "an
infrastructure of scholarly communication" within higher education.[2] Workplace
trends, as presented in Sustaining Excellence in the 21st Century: A Vision and
Strategies for College and University Administration, well represent the outlook for
the CSU. Two key issues are identified:
(1) Economics. There is increasing pressure to constrain administrative costs within
the "labor intensive cost structure" that exists in higher education. Reductions in staffare occurring at the same time as transaction volume and service expectations are
growing.
(2) Decentralization of responsibility. With fewer people and greater access to
information, organizations are moving responsibility for decision-making downward
to the point of service. Work organization is shifting away from job specialization and
a task/procedure orientation, to more generalized job responsibilities focused on
outcome and greater participation on cross-functional teams
(3) Another central workplace trend is the "earning and learning" environmentdescribed by the U.S. Department of Labor in its Secretary's Commission on
Achieving Necessary Skills (SCANS) report. To quote Thomas P. Foley, Secretary of
the Pennsylvania Department of Labor and Industry:"We've changed from the idea of
"one skill, one job" to the reality of a range of skills that have to apply to a number of
different kinds of professions. More to the point, workers must possess a skill that
they continually upgrade just to keep pace in the professions they choose."
(4) The influx of new technology and applications has created a demand for continual
learning and adaptation. Due to the CSU's relatively stable workforce, maintaining
skills to keep pace with changing technology was identified as a critical goal.Knowledge requirements are expanding to encompass a greater breadth of
technologies and subject expertise, as well as including process-oriented capabilities
such as communication and negotiation skills.
1.5.7 The implications of these technological , educational, and workplace trends
point directly to the need to reengineer organizational structures, work design, and
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processes. Based on these trends and overall organizational goals, two key objectives
were established for a new job design approach for the CSU: flexibility and skill
development. Fundamentally, each campus needs the flexibility to achieve its goals by
distributing work assignments in a way that optimizes its available skill mix and
promotes individual skill development and initiative.
1.6 OBJECTIVES OF STUDY
1.6.1 Following were the objectives of the study:-
1. To enlist emerging HR trends in Indian IT Industry
2. To review literature and research done in this area.
3. To find out lacking areas regarding the HRD in IT sector.
4. To measure the perceptions of IT sector employees in respect of application of
HRD in their organisation.
5. To suggest the measures to fill the gaps and improve motivation level of employees
and HR management in IT industry.
1.7 RESEARCH METHODOLOGY
1.7.1 The study was exploratory in nature. All published and unpublished available on
the subject matter was consulted. Interview and discussions were held with the
various executive/ Managers/ staff employed in IT sector. The HRD functions/
activities being undertaken in different IT organisations were also studied. Primary
and secondary data available with these organisations was also used for this project
study.
1.7.2 In order to measure the employees perceptions of emerging HR trends indifferent IT organisation, the survey was undertaken. The survey was based on
structured questionnaire. The questionnaire was mainly based on objective type close-
ended question, but few open ended questions were also included.
1.7.3 Firstly, the pilot survey on ten randomly selected respondents was undertaken.
Then the questionnaire was modified accordingly, if desired.
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1.7.4 The final questionnaire was administered in person to the extent possible and
through mail if needed. The 100 respondents were selected among the executives and
staff working in various IT organizations. The convenient random sampling technique
was used for the selection of the respondents.
1.7.5 Finally, the results of the survey has been presented in Tabular form, analyzedand interpreted to meet the required needs of this project study and presented in
Report form.
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Recruitment and selection of Insurance Companies
PREFACE
People are a companys most important assets. They can make or break the fortunes
of a business. In todays highly competitive business environment placing the rightpeople in the right position is very critical for the success of any organization.
The recruitment and selection decision is of prime importance as it is the vehicle for
obtaining the best possible person-to-job fit that will, contribute significantly
towards the Company's effectiveness. It is also becoming increasingly important, as
the Company evolves and changes, that new recruits show a willingness to learn,
adaptability and ability to work as part of a team. The Recruitment & Selection
procedure ensures that these criteria are addressed
In this project I have studied Recruitment and Selection process of ICICI Prudential
Life Insurance and attempted to provide some ways so as to make recruitment more
effective and to reduce the cost of hiring an employee.
I am privileged to be one of the students who got an opportunity to do my training
with ICICI Prudential Life Insurance. My involvement in the project has been very
challenging and hasprovided me a platform to leverage my potential in the most
constructive way.
ICICI Prudential Life insurance is one of India's leading financial institutions offeringcomplete financial solutions that encompass every sphere of life. In a short span of
time,ICICI has set an example by having a steady and confident journey to growth
and success.
During the training period I have studied deeply the process of hiring in ICICI
Prudential Life insurance and did a SWOT analysis of ICICI Prudential Life Insurance to
find out the existing shortcomings and potential threats and thereby recommended
suggestions.
This project however is an attempt to share as best as possible my experience in
corporate world with all my colleagues and my faculty.
I would be delighted to receive readers comments which maybe valuable lessons for
my future projects.
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EXECUTIVE SUMMARY
In todays rapidly changing business environment, organizations have to respond
quickly to requirements for people. The Financial market has been witnessing growth
which is manifold for last few years. Many private players have entered the economy
thereby increasing the level of competition. In the competitive scenario it has
become a challenge for each company to adopt practices that would help the
organization stand out in the market. The competitiveness of a company of an
organization is measured through the quality of products and services offered to
customers that are unique from others. Thus the best services offered to the
consumers are result of the genius brains working behind them. Human Resource in
this regard has become an important function in any organization. All practices of
marketing and finances can be easily emulated but the capability, the skills and
talent of a person cannot be emulated. Hence, it is important to have a well-
defined recruitment policy in place, which can be executed effectively to get the bestfits for the vacant positions. Selecting the wrong candidate or rejecting the right
candidate could turn out to be costly mistakes for the organization. Therefore
a recruitmentpractice in an organization must be effective and efficient in attracting
the best manpower.
CoverageThe extent and limitation
With largest number of life insurance policies in force in the world, insurance
happens to be a mega opportunity in India. Its business is growing at 15-20% annually
and presently is of the order of Rs. 450m. Together with banking sector it adds about
7% to the GDP.
Like in the case of BPOs, Insurance sector too faces the problem of attrition.
Thus,recruitment is an ongoing process carried through out the year. The project is
based on the study of recruitment process. The various recommendations suggested
have been the result of the study. The idea is to generate ways of dealing with high
attrition and making hiring process manageable and efficient.
Data Used
There were mainly two sources of data collection
Primary data:
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Survey method
Personal interview with candidates
In depth conversation with the placement agency
v Secondary data:
Study of recruitment policy
Websites
Published articles
Research methodology used
v Study of recruitment and selection at ICICI Prudential Life Insurance by the
manual providedby the HR department;
v Web sites
v Journals
v Magazines
v Books
Findings
v Recruitment is done throughout the year more during the months of May-June
and Oct-Nov;
v Huge investment of time;
v Huge recruitment cost;
To pursue these, I would be going through the recruitment policies of the company.
By active participation in the recruitment process, the areas where improvement can
be bought about can be identified.
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Thus the whole research would be done under the guidance of external guide. It will
also involverecruitment and selection processes, reading the material provide
internally by the organization, information from the new employees.
Introduction
1.1 Introduction Of The Insurance Industry
Overview
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 disaster existed in primitive
men also. They too sought to avert the evil consequences of fire and flood and loss of life andwere 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 erapastfew centuriesyet its beginnings date back almost 6000 years.
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 totalbusiness-in-force as Rs.298 crore in 1938. 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.
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 startedfunctioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its
business.
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 nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with acapital contribution of Rs. 5 crore from the Government of India.
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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.
With largest number of life insurance policies in force in the world, Insurance happens to be a
mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per
cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and fundsavailable with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while healthinsurance and non-life insurance continues to be below international standards. And this part of
the population is also subject to weak social security and pension systems with hardly any oldage income security. This itself is an indicator that growth potential for the insurance sector isimmense.
A well-developed and evolved insurance sector is needed for economic development as itprovides long term funds for infrastructure development and at the same time strengthens the risk
taking ability. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollar. The Insurance sector, to some extent, can enable investments ininfrastructure development to sustain economic growth of the country.
India has come a full circle from being an open competitive market to nationalization and back to
a liberalized market again. Tracing the developments in the Indian insurance sector reveals the360 degree turn witnessed over a period of almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the passage of theInsurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
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private players and allowing foreign players to enter the market with some limits on direct
foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in
India and this may also include restructuring and revitalizing of the public sector companies. In
the private sector 14 life insurance and 8 general insurance companies have been registered. Ahost of private Insurance companies operating in both life and non-life segments have started
selling their insurance policies..
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only tapped by the
state owned LIC till the entry of private insurers. The penetration of life insurance products was
19 percent of the total 400 million of the insurable population. The state owned LIC sold
insurance as a tax instrument, not as a product giving protection. Most customers were under-insured with no flexibility or transparency in the products. With the entry of the private insurers
the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the
market in terms of premium income. The new business premiums of the 12 private players has
tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing andaggressive distribution. That's the triple whammy combination that has enabled fledgling privateinsurance companies to sign up Indian customers faster than anyone ever expected. Indians, who
have always seen life insurance as a tax saving device, are now suddenly turning to the private
sector and snapping up the new innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading people to
take out bigger policies. Buoyed by their quicker than expected success, nearly all privateinsurers are fast- forwarding the second phase of their expansion plans.
Major Insurance Players
Licenses have been issued for the following companies
ICICI Prudential Life Insurance Limited
ICICI Prudential Life Insurance Company Limited
HDFC Standard Life Insurance Company Limited
Birla Sun Life Insurance Company Limited
TATA AIG Life Insurance Company Limited
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Max New York Life Insurance Company Limited
SBICardiff Life Insurance Company Limited
ING Vysya Life Insurance Company Limited
Bajaj Allianz Life Insurance Company Limited
MetLife Life Insurance Company Limited
Aviva Life Insurance Company Limited
AMP Sanmar Life Insurance Company Limited
Sahara India Life Insurance Limited
Sri Ram Life Insurance Limited
Protection of the interests of policyholders:
IRDA has the responsibility of protecting the interest of insurance policyholders.
Towards achieving this objective, the Authority has taken the following steps:
v IRDA has notified Protection of Policyholders Interest Regulations 2001 to
provide for: policy proposal documents in easily understandable language; claims
procedure in both life and non-life; setting up of grievance redressal machinery;
speedy settlement of claims; and policyholders' servicing. The Regulation also
provides for payment of interest by insurers for the delay in settlement of claim.
v The insurers are required to maintain solvency margins so that they are in a
position to meet their obligations towards policyholders with regard to payment of
claims.
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v It is obligatory on the part of the insurance companies to disclose clearly the
benefits, terms and conditions under the policy. The advertisements issued by the
insurers should not mislead the insuring public.
v All insurers are required to set up proper grievance redress machinery in their
head office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurance
contract.
1.2 COMPANY PROFILE
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it hasdiversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the
financial year ended March 31, 2005, the company garnered Rs 1584 crore of new
business premium for a total sum assured of Rs 13,780 crore and wrote nearly
615,000 policies.
The Company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind
the brand. The Company aims to achieve this by striving to provide world class
service levels through constant innovation in products, distribution channels and
technology based delivery. The Company has already taken significant steps to
achieve this goal.
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India's Number One private life insurer, ICICI Prudential Life Insurance Company is a
joint venture between ICICI Bank-one of India's foremost financial services
companies-and Prudential plc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow
our distribution, product range and customer base, we continue to tirelessly uphold
our commitment to deliver world-class financial solutions to customers all over India.
FACT SHEET
THE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst
the first private sector insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plcholding 74% and 26% stake respectively. For the first quarter ended June 30, 2007,
the company garnered Rs. 987 crore of weighted retail + group new business
premiums and wrote over 450,000 retail policies in the period. The company has
assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating
is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its
obligations to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1 private
life insurer in the country, with a wide range of flexible products that meet the needs
of the Indian customer at every step in life.
Distribution
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ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 680 branches and
over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-
operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank,
Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli
Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank,
The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.
The Insurance Provided The health insurance Placement Agency Canon camera reviews Locate a person Life insurance company
Products Insurance Solutions For Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its products can be
enhanced with up to 4 riders, to create a customized solution for each policy holder.
Savings Solutions
SavenProtectis a traditional endowment savings plan that offers life
protection along with adequate returns.
CashBakis an anticipated endowment policy ideal for meeting milestone
expenses like a childs marriage, expenses for a childs higher education or
purchase of an asset.
LifeTimeSuper offer customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. Each offer 4 fund
options Preserver, Protector, Balancer and Maximiser.
LifeLink Superis a single premium Unit Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan that offers customers life
insurance cover till the age of 75.
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InvestShield Life Newis a unit linked plan that provides premium guarantee on
the invested premiums and ensures that the customer receives only the
benefits of fund appreciation without any of the risks of depreciation.
InvestShield Cashbak is a unit linked plan that provides premium guarantee
on the invested premiums along with flexible liquidity options.
Protection Solutions
LifeGuardis a protection plan, which offers life cover at very low cost. It is
available in 3 optionslevel term assurance, level term assurance with return
of premium and single premium.
HomeAssure is a mortgage reducing term assurance plan designed specifically
to help customers cover their home loans in a simple and cost-effective
manner.
Child Plans SmartKideducation plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the childs life.
SmartKid plans are also available in unit-linked form both single premium
and regular premium.
Education Insurance Plans
Education insurance under the SmartKid brand provides guaranteed
educational benefits to a child along with life insurance cover for the
parent who purchases the policy. The policy is designed to provide
money at important milestones in the child's life. SmartKid plans are
also available in unit-linked form - both single premium and regular
premium
Retirement Solutions
ForeverLifeis a retirement product targeted at individuals in their thirties.
Market-linked retirement products
LifeTimeSuper Pension is a regular premium market-linked pension plan.
Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation
and payout stages.
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Health Solution
Health Assure and Health Assure Plus: Health Assure is a regular premium
plan which provides long term cover against 6 critical illnesses by providing
policyholder with financial assistance, irrespective of the actual medical
expenses. Health Assure Plus offers the added advantage of an equivalent life
insurance cover
Cancer Care: is aregular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various cancer
conditions.
Diabetes Care and Diabetes Care Plus*:1stever critical illness insurance
cover for diabetics.
Hospital Care*:Hospital Care offers a Cashless hospitalization facility in
more then 3000 network hospitals
Crisis Cover: is a 360-degree product that will provide long-term coverage
against 35 critical illnesses, total and permanent disability, and death
Note (*) products Re-launched on 1stJuly 2006
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking toenhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund
their statutory gratuity obligation in a scientific manner. The plan can also be
customized to structure schemes that can provide benefits beyond the statutory
obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member of
the group. Employees have the option of choosing from various annuity options oropting for a partial commutation of the annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Prus flexible group term solution helps provide
affordable cover to members of a group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.
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Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1. Accident Benefit:If death occurs as the result of an accident during the term ofthe policy, the beneficiary receives an additional amount equal to the rider sum
assured under the policy. If the death occurs while traveling in an authorized
mass transport vehicle, the beneficiary will be entitled to twice the sum assured
as additional benefit.
2. Accident & Disability Benefit: This rider option pays 10% the sum assured under
the rider every year till next 10 years on Accidental Permanent Disability of 2
Organs.
3. Critical Illness Benefit:protects the insured against financial loss in the event of
9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death.
4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available on
SmarKid, SecurePlus and CashPlus
5. Waiver of Premium:In case of total and permanent disability due to an accident, the
premiums are waived till maturity. This rider is available with SecurePlus andCashPlus.
Choice of Six Investment Options :-
ICICI prudential offers you the opportunity of selecting between investment options
to match your investment priorities.
1) Protector:-
An Investment Option with investment indebt and money marketinstruments.
2) Maximiser :-
An investment option with investment in equity and equity related
instruments.
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3) Balancer :-
An investment option with investment in a mix of equity and debt oriented
instruments.
4) Preserver :-
An investment option with investment in low-risk instruments like cash and
call
money markets.
5) Flexi Growth:-
New Fund (NFO) launched in March 2007, Long term returns from an equity
portfolio lare,mid and small cap companies.
6) Flexi balanced:-
Balance of capital appreciation and stable returns from an equity (large,mid &
small cap companies) & debt portfolio.
Vision and Mission
Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their
commitment to excellence, focus on service, speed and innovation, and leveraging our
technological expertise.
The success of the organisation will be founded on its strong focus on values and
clarity of purpose. These include:
Understanding the needs of customers and offering them superior products
and service
Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their
employees
And above all building transparency in all our dealings.
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They believe that they can play a significant role in redefining and reshaping the
sector. Given the quality of their parentage and the commitment of their team, they
feel that tere will be no limits to their growth.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 150 cities and towns in India,
stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to
Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with ICICI
Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some
co-operative banks, as well as over 300 corporate agents and brokers. It has also tied
up with NGOs, MFIs and corporates for the distribution of rural policies.
ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers
RegisteredOffice :
ICICI Towers 9thfloor, Bandra-Kurla Complex
Mumbai - 400 051.
Tel: 494 3232
Regional Office :
8thfloor EROS Coorporate Tower,Nehru place,
New Delhi-110011.Tel:46554405
Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi RoadNew Delhi - 110055. Tel: 601 3232
ICICI Prudential Life Insurance opens office in Dubai
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In a move to consolidate its position in the Gulf region, ICICI Prudential Life
Insurance (ICICI Prudential), India's No. 1 private life insurance company, today
opened its representative office in Dubai, becoming the first private life insurer
from India to open an office in the Emirate.
At ICICI Prudential we offer pragmatic, world-class solutions. Put simply,
solutions with a lot of common sense. Solutions that take care of your four basic
financial needs - Earning, Saving, Investing and Spending. So you live your life to the
fullest, sans worries.
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Workman's Performance Appraisal in HP India Sales Pvt.
Ltd., New Delhi
Performance Appraisal System inHRM :
The performance appraisal system is
one of the most critical areas in the
field of human resource management.
Despite the increasing research done
by behaviour scientists, man still
remains a very complex person,
however, at the same time capable of
extremely high performance levels,given the proper environment and
motivation.
This aspect has given a new
dimension to performance appraisal
system. These are not merely, at least
should not be, a mere reporting of an
individual performance once a year
but also should serve as an instrument
of motivation. A sound appraisal
system is, therefore, an individual
assets in human resource
management.
Project Report on Training & Development of
Employees
Project Report on HR Implications in Banking
Industry
Some practical issues for improving the effectiveness of appraisal practices would be
as under :-
1. Purpose of performance appraisal.
2. Confidently in appraisals.
3. Steps for ensuring objectivity.
4. Shift from personality trait to job performance.
http://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htm8/13/2019 146715446 Hrd Management in It Industry
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5. Influence of organizational environment in employee appraisal.
CONTENTS
Company Profile
Introduction to Project
Performance Appraisal in HP India Sales Pvt. Ltd.
Objective of Study
Scope of Study
Research Methodology
Analysis and Interpretation of Data
Conclusions
Suggestions
Limitations
Observations
Annexures
o Questionnaire
o Bibliography
Project Description :
Title : Workman's Performance Appraisal in HP India Sales Pvt. Ltd., New Delhi
Category : Project Report for MBA
Pages : 72
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This project is our paid category, its cost is Rs. 2499/- only without Synopsis and Rs.
2999/- only with synopsis. If you need this project, mail us at this id
We will send you a hardcopy with hard binding and a softcopy in CD from courier.
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PROJECT REPORT ON TOTAL QUALITY
MANAGEMENT
CONCEPTUALIZATION
This is Total Quality Management Project Report. Human resource is the most
important factor for any organization and success of any Organization is depending
upon its resource .If human resource of organization is not happy with the
organization. It will adversely affect the organization.
The higher degree of commitment toward work will improve productivity and will
decrease rejection cause due to human factor.
So to make the people happy is the responsibility of the organization. So this study is
helpful to measure the level of commitment toward work and to know the factor
affecting the commitment level .
QUALITY:-
1. Quality means fit ness for use.
2. Quality means productivity, competitive cost, and timely delivery, total customer
satisfaction.
3. Quality means conformance to specification and standard.
4. Conformance to requirements.
5. Quality is what the customer says
6. Quality means getting every one to do what they have agreed to do and to do itright the first time and every time.
TOTAL QUALITY :-
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It means all the people of the organization are committed to product quality by doing
right things right, first time, every time by employing organization resource to
provide value to customer.
TOTAL QUALITY MANAGEMENT: -
It is the process designed to focus external/internal customer expectation preventing
problems building ,commitment to quality in the workforce and promoting to open
decision making.
TOTAL:
Every one associated with the company is involved in continuous improvement, in all
functional area, at all level.
QUALITY:
Customer express and implied requirement is met fully.
MANAGEMENT:
Executive are fully committed
Decision in a planned way.
To maintain existing lever of quality.
To improve existing lever of quality.
Effective utilization of resource.
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The treatment of individual by the management
The lever of workers satisfaction with the salaries
The level of worker pride in the company and its activity
Worker reaction to the formal communication network in the organization.
Intrinsic job satisfaction level of the worker.
Worker attitude toward the fellow worker.
OPERATIONALISATION OF THE
CONCEPT:-
I have studied on impact of employees commitment toward. I have explained
earlier.
In the company, they already have implemented TQM so through this study, I
measured the degree of implementation in the organization and what are the factor
that are affected the commitment lever and to check how much they are satisfaction
with the TQM implement.
For this purpose, I have made the questionnaire which consisting of multiple-choice
questions. I have collected the data from them and after that I have tabulated them and
interpreted them and give the recommendation.
Focus of the problem:
The main emphasis will be on to find out quality employees commitment toward
their work as a result total quality implementation.
Review of Existing literature:
Many people have work on this topic. They sum up various finding. They found that
apply TQM has directly increased their morale; increase the satisfaction lever and
commitment toward their work. These are the finding of various researchers.
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Several articles have been published in different journals , magazines and newspaper
such as HARVARD BUSINESS REVIEW,THE ECONOMIC TIMES,VIKALPA etc.
But the effect of TQM on employees commitment in the company has so far not
undertaken. This project has been done first time in the company.
LIMITATION
~Employees of the organization may hide the fact.
~The management did not agree to disclose all the confidential data.
~Number of respondents are very less, so clear conclusion cant be
drawn.
OBJECTIVE OF THE STUDY:-
The objectives of this study are:
1.To find the degree of TQM implemented in the organization.
2.To studythe level of commitment of employees toward their work.
3. To find out factor influencing the commitment.
RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem in a systematic
manner. It may understand as a science of studying how the research is done
significantly. The methodology may differ from problem to problem, yet the basic
approach towards the research remains the same. The sequence or steps followed havebeen explained as under:
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UNIVERSE AND SURVAY POPULATION
The universe is the employee working at mill. I have selected 100 employee 40
FROM THE STAFF,60 FROM THE WORKER for the survey.
RESEARCH DESIGN
This research is of EXPLORATARY RESEARCH DESIGN .I have used the
questionnaire method for collecting the data.
ANALYSIS PATTERN
Data collection:
This data is primary data, which I have been collected with the help of
questionnaire. I have prepared a questionnaire on the basis of the factors
responsible for employees commitment in the organization.
MACRO ANALYSIS (Inferences &Interpretation)
The detailed analyses of the results are explained below:
MOST OF EMPLOYEES FEELS THAT:
Most of the staff member and worker feel that organization is quality conscious
toward the employees. This also increases their commitment toward the work and
toward the organization.
Some of the employees feel that thy have proper information about the policies,
practices followed in the organization. But some of employees feel that there is no
proper communication.
Most of the facts related with the organization are hided by the management from the
employees.
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Most of the employees feel that they dont get rewarded for their good performance.
Most of the staffs member feel that their performance is properly measured in the
organization.
RECCOMENDATIONS
The suggestions I have given for the betterment are explained below:
It is very important to provide the opportunity to the employees of the
organization to express their ideas or whatever they want to express.
Management should clear their vision mission and goals towards the
employees in the organization.
Management should involve the workers representatives in managerial
activities so that the transparency could be maintained and through this they
can win the confidence of the employees.
Management should give due importance to mental relaxation &social cultural
development of an employees who strives hard for the company.
Reward or Praise/appreciation works as magic for an individual and motivates
them for work.
Role clarity of each position should be defined and based on that individuals
can plan their work accordingly.
Self-potential system should be encouraged.
There are regular review and comparison of current & past performance to
detect gradual deterioration in the strategy.
Proper cooperation should be necessary in the company.
NOTE: THIS QUESTIONNAIRE IS PURELY FOR ACADEMIC PURPOSES.
ALL THE INFORMATION PROVIDED WOULD BE KEPT CONFIDENTIAL.
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Do you think the organization is quality conscious toward employees?
YES NO
Does the organization have the certification of ISO 9000?
YES NO
Is the organization providing quality assurance system & operation?
YES NO
Does the organization have quality circle?
YES NO
How many people are involved in quality circle?
Below 10 above 10 above 15 cant say
How frequently the organizations have the meeting of quality circle?
Weekly biweekly monthly yearly
Do you about the agenda of information or any other information?
YES NO
Are the organization is going for the quality audit?
YES NO cant say
Does your organization have quality information system?
YES NO cant say
Are the information system is regularly updated?
YES NO cant say
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Dont know Agree Disagree
Employees are kept updated with changes in job skills & job designs?
Strongly Agree Strongly disagree
Dont know Agree Disagree
Formal or informal method is followed for employees feedback and acting on that
feedback?
Strongly Agree Strongly disagree
Dont know Agree Disagree
Does the organization provide right environment to apply your knowledge from
new programs to the job?
Very much Some whatLittle
Not at all
Do you feel that the organization is a good place to work?
Yes No Sometimes
Do you feel comfortable with rules and policy of the organization?
Yes No Sometimes
What types of relations are you having with your superior, peers and
subordinates?
Good Average Poor
If bad then why it is so?
They are not cooperating.
Their behavior is not good
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There is no proper communication.
All above
Do you feel that you can get ahead in the org. if you make an effort?
Yes No Sometimes
Do you get any reward on your good performance?
Yes No Sometimes
Do you find that your performance is properly measured in the organization?
Yes No Sometimes
Do you find that your job makes the best use of your abilities?
Yes No Some Times
Thank you for your kind co-operation.
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PROJECT REPORT ON PERFORMANCE APPRAISAL SYSTEM AT BSNL
INTRODUCTION TOWARDS PERFORMANCE APPRAISAL SYSTEM
Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every managers responsibility, but manyorganizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are
that their people remain under valued, under trained and under utilized.
Performance Appraisal is the process of assessing the performance and progress of an employee or
a group of employees on a given job and his / their potential for future development. It consists of
all formal procedures used in the working organizations to evaluate personalities, contributions andpotentials of employees.
PREFACE
Managing human resources in todays dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the organization
has led to increases trends in employee maintenance, job security, etc
My research project deals with Performance Appraisal as carried out at Bhart
Sanchar Nigam Ltd. (BSNLK). In this report, I have studied &evaluated the
performance appraisal process as it is carried out in the company.
The first section of my report deals with a detailed company profile. It includes the
companys history: its activities and operations, organizational structure, etc. this
section attempts to give detailed information about the company and the nature of
its functioning.
The second section deals with performance appraisal. In this section, I have given a
brief conceptual explanation to performance appraisal. It contains the definition,
process and significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate the
process of performance appraisal at Bharat Sanchar Nigam Ltd.; this section also
contains my findings, conclusions, suggestions and feedback.
The forth and final section of this report consists of extra information that I related
to the main contents of the report. These annexure include some graphs and
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diagrams relating to the company, graphs relating to the research study and
important documents upon which the project is based.
RATIONALE OF THE STUDY
Performance Appraisal is the important aspect in the organization to evaluate the
employees performance. It helps in understanding the employees work culture,
involvement, and satisfaction. It helps the organization in deciding employees
promotion, transfer, incentives, pay increase.
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every managers responsibility, but manyorganizations find it advantageous to establish a specialist division to provide an
expert service dedicated to ensuring that the human resource function is performed
efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are
that their people remain under valued, under trained and under utilized.
The market place for talented, skilled people is competitive and expensive. Taking on
new staff can be disruptive to existing employees. Also, it takes time to develop
cultural awareness, product / process / organization knowledge and experience fornew staff members.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Following are the various functions of Human Resource Management that are essential for the
effective functioning of the organization:
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
5. Training & Development
Recruitment
The process of recruitment begins after manpower requirements are determined in terms of quality
through job analysis and quantity through forecasting and planning.
Selection
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The selection is the process of ascertaining whether or not candidates possess the requisite
qualifications, training and experience required.
Induction
a) Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.WHAT IS PERFORMANCEAPPRAISAL?
Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future development. It
consists of all formal procedures used in working organizations and potential of employees.
According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of
an employees excellence in matters pertaining to his present job and his potential for a better job.
CHARACTERISTICS
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and weakness of an employee in terms of his
job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged periodically
according to a definite plan.
5. The main purpose of Performance Appraisal is to secure information necessary for making
objective and correct decision an employee.
PROCESS
The process of performance appraisal:1. Establishing performance standards
2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6.Taking Corrective Action
LIMITATIONS
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
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METHODS OF PERFORMANCE APPRAISAL
The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committingsuicide. The more logical task is to identify those appraisal practices that are (a) most likely to
achieve a particular objective and (b) least vulnerable to the obstacles already discussed.
Before relating the specific techniques to the goals of performance appraisal stated at the outset
of the article, I shall briefly review each, taking them more or less in an order of increasing
complexity.
The best-known techniques will be treated most briefly.
ESSAY APPRAISAL
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations, particularlythose involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.
.
GRAPHIC RATING SCALE
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is
he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that
vary with the job but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.FIELD REVIEW
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)
help the group arrive at a consensus, and (c) determine that each rater conceives the standards
similarly. .
FORCED-CHOICE RATING
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a thirdparty.
MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.
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gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God."Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the
employee meets or exceeds the set objectives, then he or she has demonstrated an
acceptable level of job performance. Employees are judged according to real
outcomes, and not on their potential for success, or on someone's subjective opinion
of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and variedelements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into
so many constituent parts, but to put all the parts together and the performance
may be directly observed and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good "reality
checking" skills to use MBO appraisal methods. They will need these skills during the
initial stage of objective setting, and for the purposes of self-auditing and self-
monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.
Benefits of Performance Appraisals
Measures an employees performance.
Helps in clarifying, defining, redefining priorities and objectives.
Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs.
Helps in identification of personal strengths and weaknesses.
Plays an important role in Personal career and succession planning.
Clarifies team roles and facilitates team building.
Plays major role in organizational training needs assessment and analysis.
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Improves understanding and relationship between the employee and the
reporting manager and also helps in resolving confusions and
misunderstandings.
Plays an important tool for communicating the organizations philosophies,
values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback.
Rating Errors in Performance Appraisals
Performance appraisals are subject to a wide variety of inaccuracies and biases
referred to as 'rating errors'. These errors can seriously affect assessment results.
Some of the most common rating errors are: -
Leniency or severity: - Leniency or severity on the part of the rater makes the
assessment subjective. Subjective assessment defeats the very purpose of
performance appraisal. Ratings are lenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated
unfavorably will reflect poorly on his or her own worthiness.
b) He/She may feel that a derogatory rating willbe revealed to the rate to
detriment the relations between the rater and the ratee.
c) He/She may rate leniently in order to win promotions for the
subordinates and therefore, indirectly increase his/her hold over him.
Central tendency: - This occurs when employees are incorrectly rated near the
average or middle of the scale. The attitude of the rater is to play safe. This safeplaying attitude stems from certain doubts and anxieties, which the raters have been
assessing the rates.
Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error
occurs when an employee who works late constantly might be rated high on
productivity and quality of output as well ax on motivation. Similarly, an attractive or
popular personality might be given a high overall rating. Rating employees separately
on each of the performance measures and encouraging raters to guard against the
halo effect are the two ways to reduce the halo effect.
Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or
low score are given only to certain individuals or groups based on the rater's attitude
towards them and not on actual outcomes or behaviors; sex, age, race and friendship
biases are examples of this type of error.
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Primacy and Regency effects: - The rater's rating is heavily influenced either by
behavior exhibited by the ratee during his early stage of the review period (primacy)
or by the outcomes, or behavior exhibited by the ratee near the end of the review
period (regency). For example, if a salesperson captures an important contract/sale
just before the completion of the appraisal, the timing of the incident may inflate hisor her standing, even though the overall performance of the sales person may not
have been encouraging. One way of guarding against such an error is to ask the rater
to consider the composite performance of the rate and not to be influenced by one
incident or an achievement.
Performance dimension order: - Two or more dimensions on a performance
instrument follow each other and both describe or rotate to a similar quality. The
rater rates the first dimensions accurately and then rates the second dimension to
the first because of the proximity. If the dimensions had been arranged in a
significantly different order, the ratings might have been different.Spillover effect: - This refers lo allowing past performance appraisal rating lo
unjustifiably influence current ratings. Past ratings, good or bad, result in similar
rating for current period although the demonstrated behavior docs not deserve the
rating, good or bad.
ROLES IN THE PERFORMANCE APPRAISAL PROCESS
a) Reporting Manager
Provide feedback to the reviewer / HOD on the employees
behavioral traits indicated in the PMS Policy Manual
Ensures that employee is aware of the normalization / performance
appraisal process
Address employee concerns / queries on performance rating, in
consultation with the reviewer
b) Reviewer (Reporting Managers Reporting Manager) Discuss with the reporting managers on the behavioral traits of all
the employees for whom he / she is the reviewer
Where required, independently assess employees for the said
behavioral traits; such assessments might require collecting data
directly from other relevant employees
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c) HOD (In some cases, a reviewer may not be a HOD)
Presents the proposed Performance Rating for every employee of
his / her function to the Normalization committee.
HOD also plays the role of a normalization committee member
Owns the performance rating of every employee in the department
d) HR Head
Secretary to the normalization committee
Assists HODs / Reporting Managers in communicating the
performance rating of all the employees
e) Normalization Committee
Decides on the final bell curve for each function in the respective
Business Unit / Circle
Reviews the performance ratings proposed by the HODs, specifically
on the upward / downward shift in ratings, to ensure an unbiased
relative ranking of employees on overall performance, and thus
finalize the performance rating of each employee
KEY CONCEPTS IN PMS
In order to understand the Performance Management System at BHARTI, some conceptsneed to be explained which play a very important role
in using the PMS successfully. They are:
KRAS (KEY RESULT AREAS):The performance of an employee is largely dependent on the KRA score achieved by the employee
during that particular year. Thus, it is necessary to answer a few basic questions i.e.
o What are the guidelines for setting the KRAs for an employee?
o How does an employee write down his KRAs for a particular financial year?
o KRAs: The Four Perspectives.
o How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?
BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees performance combined with the general behavioral traits
displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on t