Insurance Ashima

SUMMER INTERNSHIP REPORT 2010, Birla Institute of Management Technology, Greater Noida

SUMMER INTERNSHIP 2010

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A SUMMER PROJECT REPORT

ON

“Calculating the Return on Investment (ROI) for the first thirty days of

Launch Pad Training using the Kirk Patrick Model”

A Report submitted to

DLF PRAMERICA LIFE INSURANCE

(Session 2009-11)

Submitted by:

Ashima Ajmani

PGDM

Roll No. 09DM025

Corporate Guide Academic Guide:

Mr. Arindam Lahiri Prof R.J. Masilamani


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SUMMER PROJECT CERTIFICATE

This is to certify that Ms. Ashima Ajmani (Roll No: 25 / 2009) a student of PGDM has worked

on the Summer Project titled, Calculating the Return On Investment for the first thirty days of

the Training Of Sales Managers through the Launch Pad Process after trimester III in partial

fulfillment of the requirement for the programme. This is her original work to the best of my

knowledge.

Date:

Signature

Seal: (Prof. R.J. Masilamani)


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ACKNOWLEDGEMENT

This project report bears the imprint of many people who have helped me for the

successful completion of this report.

I acknowledge with gratitude the management of Birla Institute of Management

Technology (BIMTECH), Greater Noida for giving me this opportunity to undertake this summer internship, which has been a very enriching experience for me.

With due reverence, I must acknowledge the great deal of pain undertaken by the

officials of DLF Pramerica Life Insurance who were always ready to solve all my queries and provide me with the material relevant for this project.

I am greatly indebted to the following senior executives of DLF Pramerica Life

Insurance for providing me constructive suggestions, essential resources and constant inspiration during the summer internship:

Mr. Arindam Lahiri, Mr. Praveen Singh, Miss Shivani Narang, Mr. Amit Rishi,

Mr. Satinder Sahi, Mr. Rohit Shandil, Mr. Jasvinder Lamba.

Sincere heartfelt thanks to all other employees of DLF Pramerica Life Insurance who

have directly or indirectly helped me in the successful accomplishment of this report.

I would like to thank all the faculty members and staff members of BIMTECH,

especially Prof. R.J. Masilamani for his continuous feedback, encouragement,

suggestions, and insights and for motivating me for higher achievements.

Last but not least, my dear friends and my family deserve special mention for their

support throughout the project.

Ashima Ajmani

Birla institute of Management Technology (BIMTECH)

Greater Noida

Date: 15th June, 2010

Place: Greater Noida.


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TABLE OF CONTENTS

Topic Page Number

1. Executive Summary………………………………………………….. 06-07

2. Introduction………………………………………………................... 08-16

2.1. Industry Profile……………………………………….............. 08-10

2.2. Company Profile……………………………………………… 11-16

3. Module I………………………………………………………………. 17-39

3.1. Introduction………………………………………………. 17

3.2. Review of Literature……………………………………… 18-28

3.3. Training Objectives in Insurance Industry……………… 29-30

3.4. Evaluation Of Training(The Launch Pad Process)…… 30-35

3.4.1. Problem Definition and Objectives………………………. 36-37

3.4.2. Methodology………………………………………………. 38-40

3.4.3. Analysis and Findings…………………………………….. 41-44

3.4.4. Recommendations…………………………………………. 45

3.4.5. Conclusion………………………………………………..... 46

3.4.6. Limitations………………………………………………..... 46

4. Notes……………………………………………………………………… 47

5. Glossary……………………………………………….............................. 48

6. Annexures…………………………………………………………........... 49-86


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1. EXECUTIVE SUMMARY

This summer training project was done at DLF Pramerica Life Insurance, one of the leading

private Indian life insurance company which has a capital base of over Rs 180 crores and is

expanding at a fast pace with presence currently in Delhi/NCR, Punjab, Haryana and Gujrat

The training & development department is engaged in the induction and training of Sales

Managers and the project was to study and understand the Launch Pad Process, analyze

the effectiveness of the Launch Pad training and to calculate the ROI of first thirty days

of the Launch Pad Training.

The study was conducted for Agency Sales Managers / Associate Sales Managers and

Senior Sales Managers who joined DPLI from Jan 2010 – March 2010 across all

locations

The project was divided into five levels. The five levels were taken from the Kirk Patrick

Model as this model was the conceptual framework for the study conducted.

In Phase I we have compiled and analyzed the feedback, which was collected from the Sales

Managers at the time of training. It also dealt with areas of improvement for the training.

In Phase II we have analyzed whether the Sales Managers have learnt anything from the

training. It also identified whether the Sales Mangers have improved on their knowledge

level as well as skill level.


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In Phase III we have done a comparison between the skill level after 90 days of training

imparted to the Sales Managers and skill level at the initial level i.e., immediately after 30

days of training

In Phase IV, we have also made comparison on the following areas between the Sales

Managers who joined in 2009 and had undergone training programme in the year 2009 and

the sales managers who joined in 2010 and have undergone the revised training programme

in 2010:

a. Productivity of the Sales Managers

b. Number Of Life Associates coded by the Sales Managers

c. Attrition rate of the Sales Managers

In Phase V we have calculated the Return on Investment for the first thirty days of the

Launch Pad training


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1. INTRODUCTION

2.1 LIFE INSURANCE INDUSTRY

LIFE INSURANCE:-

Life insurance can be defined as ―life insurance provides a sum of money if the person who

is insured dies while the policy is in effect‖. In 1818 British introduced to India, with the

establishment of the oriental life insurance company in Calcutta. The first Indian owned Life

Insurance Company; the Bombay mutual life assurance society was set up in 1870. The life

insurance act, 1912 was the first statuary measure to regulate the life insurance business in

India. In 1983, the earlier legislation was consolidated and amended by the insurance act,

1938, with comprehensive provisions for detailed effective control over insurance. The union

government had opened the insurance sector for private participation in 1999, also allowing

the private companies to have foreign equity up to 26%. Following the opening up of the

insurance sector, 12 private sector companies have entered the life insurance business.

BENEFITS OF LIFE INSURANCE:-

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It provides valuable tax relief.


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Thus insurance is found to be very useful in the lives of the person both in short term and

long term. Fundamental principles of life insurance contract:-

Principle of almost good faith:-―A positive duty to voluntary disclose, accurately

and fully, all facts, material to the risk being proposed whether requested or not‖.

Principle of insurable interest:-―Relationships with the subject matter (a person)

which is recognized in law and gives legal right to insure that person‖.

BRIEF HISTORY OF THE INSURANCE SECTOR IN INDIA

In 1818, Oriental Insurance Company started by Europeans in Calcutta was the first

life insurance company on Indian soil.

But Indian lives were being treated as sub-standard lives and heavy extra premiums

were being charged on them.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life

insurance company in the year 1870, and covered Indian lives at normal rates.

Bharat Insurance Company (1896) was also one of such companies inspired by

nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance

companies.

The United India in Madras, National Indian and National Insurance in Calcutta and

the Co-operative Assurance at Lahore were established in 1906.


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In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were

passed.

The Life Insurance Companies Act 1912 made it necessary that the premium rate

tables and periodical valuations of companies should be certified by an actuary.

But the Act discriminated between foreign and Indian companies on many accounts,

putting the Indian companies at a disadvantage.

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.

About 154 Indian insurance companies, 16 non-Indian companies and 75 provident

were operating in India at the time of nationalization.

Life Insurance Corporation of India was created on 1st September, 1956.

At present there are 23 private life insurance companies in India.


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2.2 INTRODUCTION OF DLF PRAMERICA LIFE INSURANCE

COMPANY PROFILE

DLF Pramerica Life Insurance Company Ltd. (DPLI) is a joint venture between DLF Limited

and Prudential International Insurance Holdings, Ltd. (referred to hereafter as "PIIH"). PIIH

is a fully owned subsidiary of Prudential Financial, Inc. (referred to hereafter as "PFI").

The combination of the strength of the DLF brand and PFI's insurance expertise

provides the strongest possible foundations for DPLI to succeed in the rapidly

growing Indian life insurance market.

Founded in 2007

Headquartered in Gurgaon, Haryana

DLF holds 74% equity in the venture while PIIH holds 26% equity as per FDI Norms

Capital base of over Rs 180 crores

Expanding at a fast pace with presence currently in Del NCR, Punjab, Haryana &

Gujrat

No. of policies : 10530 (as of October 31, 2009)

No. of employees : 714 (as of October 31, 2009)

No. of agents : 1056 (as of October 31, 2009)


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DLF

DLF Limited is one of the largest and most respected organisations in the real estate sector in

India with over six decades of experience and a track record of sustained growth, customer

satisfaction, and innovation. In September 2006, DLF Limited was the only real estate firm

to be nominated amongst the "Super brands of India" in the consumer validated category.

After strengthening its position in the core business of residential, commercial and retail

property development, the DLF group has now made forays into the infrastructure, SEZ and

hotel businesses by entering into several strategic alliances with global industry leaders like

Laing O‘Rourke Plc. and Hilton Hotels Corporation.DLF is committed to quality, trust and

customer sensitivity, and to deliver on promises with agility, financial prudence and in tune

with the highest global standards.

PFI

PFI is a U.S. based financial services leader with its headquarters in Newark, New Jersey,

with approximately US$ 638 billion of assets under management as of June 30, 2008 and

operations in the United States, Asia, Europe and Latin America. PFI is focused on helping

its customers achieve financial prosperity and peace of mind.PFI ranks among the Top 100 in

the 2007 Forbes Global 2000 List, an annual tabulation of the world's largest public

companies and ranks 1st on Fortune Magazine's list of World's Most Admired Companies in

the Insurance: Life and Health Insurance Category two years running, in 2007 and 2008.

With more than 130 years in financial services, PFI is focused on helping approximately 50

million individual and institutional customers grow and protect their wealth. The company's

well recognized 'Rock' symbol is an icon of strength, stability, expertise and innovation that

has stood the test of time. PFI's businesses offer a variety of products and services, including

life insurance, annuities, retirement-related services, mutual funds, investment management,

and real estate services. PFI's legacy is based on a long history of social responsibility, strong

leadership, sound investments, and innovative products and services.


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VISION

At DLF Pramerica, our vision is to ensure that every life we touch feels secure and enriched.

MISSION

We shall be a guide and a mentor to people so that they are able to make the most informed

insurance decisions to meet their life goals.

VALUES:-

CUSTOMER FOCUSED-

Be someone who places customers and their needs at the forefront while developing and

managing their financial solutions.

MUTUAL RESPECT-

Build mutual respect by being an equal partner, who knows and willingly shares, helping

people go further rather than walking ahead and leading them or walking behind and

following.

WORTHY OF TRUST-

Build trust by choosing the right path rather than the easy path and tell the truth the way it is.

Be someone who keeps promises, meets commitments and behaves with integrity at all

times.

WINNING-

Be positive and confident; seize every moment, every day, with a winning perspective,

fearlessly facing the uncertainties of life.


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The DLF Promise

Quality Trust

Customer Sensitivity

Deliver

on promiseswith agility

Financial

Prudence

Highest Global Standards

REVISED LAUNCH PAD PROCESS FOLLOWED FROM JANUARY 2010

Launch Pad is an Induction & Training Program held for 90 days at DPLI for the Sales

Managers .It is a combination of both class room training and field work

For the first seven days Sales Managers are given class room training in which

They are introduced to the organization

Their role in the organization is defined

Their expectations from the organization and what the organization expects

from them is defined

The principles of insurance, the industry and common terminologies are taught


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The Agency Reward and recognition and incentive plan which they would be

entitled to depending upon their performance is discussed and explained

Sales Process followed at the organization is taught wherein how calling is done to

a prospective Customer, Fixing a meeting with the Customer, Presenting the

Company using Sales Presenter ,do the need analysis with the customer (NAF) and

match the need to the products

Closing the Call and finally taking referrals from the customer

Financial & ULIP basics and knowledge about the various products at DPLI is

imparted

Recruitment Process for the Life Associate‘s is taught wherein how Name

Gathering is done for prospective Agents, Approaching and fixing a meeting with

the agent, PFS is presented to the agent ,CAS where an is agent assessed & SN 100

is done. Interview with the Managing Partner (Branch Head) is fixed and if the agent

is selected he gets coded with the Company after clearing an exam under IRDA

Assessing Customer‘s need and fulfilling it is taught using Role Play‘s and

demonstrations and using all the forms which are required

Objection handling on various stages is done

At the end i.e. on the seventh day an exit test consisting of product ,sales knowledge

and also basics of insurance are tested

Also there is an assessment(Assessment 1 of LP-1) done by the trainer

For the Next 15 days Field Work is conducted wherein

Goal setting of the SM is done by the MP

The MP explains to the SM about the rewards & recognitions and the compensation

details

The Product Refresher and Business illustration are done by the trainer

Basics of Underwriting is taught

Joint field work with branch head and trainer‘s at branch level is done



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Form filling is taught

Sales Manager has to complete 25/50 hours of training mandated by IRDA

SM has to undergo IRDA Refresher and give an exam and has to be certified by the

end of 25 days

For the Next 3 days classroom training is conducted wherein

Product Review and refresher on sales is done


At the end of 3 days the Sales Manager is assessed by the RM and the CDM.

For the Next 60 days handholding by Associate Partner, Trainer and managing Partner is

conducted wherein the Sales manager is supposed to build skills in sales process and master

product pitch

Within 90 days SM is expected to do 1.5Lac FYPC and 3 coding of Life Associate‘s

LAUNCH PAD TRAINING AT DPLI DURING 2009-10

As a means of equipping Sales Managers with a range of skills, to enable them perform their

responsibilities, Induction, Training and HRD continued to receive a place of priority during

the year. Based on the assessed needs and as means to satisfy them, the Company sponsored

many employees to Launch Pad training programme.

Training during 2009-10 (as on 31.03.20010)

Data collected from the records which the company maintains(Secondary Source)

Training Programmes No. Of

SM’s

Total No. of Man

days utilised

Sales Managers Trained in 2009 767 5753

Sales Managers Trained in JFM 2010 200 2600


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3.1 INTRODUCTION:

Every organization requires competent employees (Sales Managers) for the successful

functioning of its various departments. To ensure that the staff works efficiently and

effectively, the organization has to continuously evaluate their performance and bridge

any performance gaps by providing appropriate training to them. For, it is the people who

‗make or break’ an organization.

Traditionally, the training policy in an organization focused on enhancing the

productivity and effectiveness of the employees so that the medium term and long term

strategies of the organization could be successfully fulfilled. Since upgradation of skills

and knowledge has direct relevance to performance.

With the ushering in of Globalization and Liberalization since early 1990s, there has been

a sea change in our business processes, and our corporate practices forcing organizations

to mould themselves to the new era of competition, where they have to compete not at

local or national level but at international level. This necessitates huge investments in the

training programs for providing the requisite skill set to the staff.

The ultimate aim of any training program is to achieve:

- Continuous Improvement

- Change-in-Attitude

- Cost Saving

- Total Productivity

- Scope for development


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3.2 REVIEW OF LITERATURE

As customer relationship plays a major role in the insurance business, adequate training

has to be provided to the employees to understand the customer needs and communicate

the suitable product details according to their requirements. A company will be

successful if the intermediaries interacting with the customers have a sound knowledge of

the products available and are able to convey the same to the end users.

Insurance expert Dale S Beach defined training as ―the organized procedure by which the

employees learn knowledge and skills for a definite purpose.‖ The organization has to

conduct training programs to educate the employees about the various products available,

to improve their selling skills and also to equip them to handle different types of

customers.

Liberalization and privatization of the insurance sector have resulted in a competitive

market. Insurance companies require smart and skilled personnel to compete with their

rivals in the market. The companies should impart necessary knowledge and skills to the

employees by conducting training programs, seminars, conferences and workshops.

A survey reveals that the training sensitivity among the private insurers stands at 3 on the

scale of 0 to 5, where 0 represents not sensitive and 5 represents highly sensitive.

The focus of the training during the last decade has shifted from ‗training for survival‘ to

‗training for success‘. Training, therefore, has to serve as a vehicle for change. To satisfy

the curiosity of Sales Managers, the faculty members will have to become real mentors

and not merely teach only the theoretical concept. The training system has to develop

wings to fly towards greater heights. All this is possible only when the organizations

evaluate the effectiveness of the existing training programs on performance improvement

of the employees and thereafter make suitable changes in the training policy to bridge the

performance gaps in the employees.


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In the present competitive and dynamic environment, it has become essential for

organizations to build and sustain competences that would provide them sustainable

competitive advantage. During the initial industrial and manufacturing era, organizations

and managers adopted an ad hoc and paternalistic approach to his concern. But, in this

knowledge era, where human assets are valued more highly than physical assets, it is but

natural that organizations adopt a strategic and planned approach towards the

maintenance and upgradation of human resources. In this context of changing

technologies and required skills/knowledge, training has assumed more importance than

ever before.

Dynamic and growth-oriented organizations recognize training as an important aspect of

the managerial function in a continuous and incessant learning process in human resource

development. It helps to develop one‘s personality, sharpen the managerial and

interpersonal skills, increase motivation, and improve the effectiveness of people

employed in an organization. It also helps to achieve congruence between corporate and

strength of its people, training is undoubtedly the most important part of organization

renewal as an ongoing process.

Training is a process through which a person enhances and develops his efficiency,

capacity, and effectiveness at work by improving and updating his knowledge and

understanding the skills relevant to his or her job. Training also helps a person cultivate

appropriate and desired behaviors and attitudes towards work and people.

Training and development in public and private enterprises is a big business. It

encompasses various players, i.e., trainees, instructors, support personnel, and managers

and supervisors, as also external agencies. Keeping in view the number and variety of

training programmes, resource required and objectives/goals sought, training may be

herculean task.

No enterprise can last long in a highly competitive society unless it keeps pace with the

emerging market trends and technological changes. If an enterprise has to compete

successfully, its products or services must excel. In addition to an aggressive and


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imaginative research and engineering effort, it also requires sustained and forward-

looking training and development efforts.

TRAINING PROGRAMME

It can be defined as a planned process through which an organization seeks to attain the

objectives of performance enhancement by developing the skills of a set of learners or by

fulfilling the learning requirements on an identified group of employees. The planning

process identifies the group of learners, the trainers, the venue, and the required resources

(financial and physical). Hence, the main functions of a training programme may be

summarized as follows:

It helps the trainees acquire knowledge of the subject matter. .

It brings about change in attitudes, understanding, and behaviour among the

trainees with respect to particular objects, programmes, and policies.

Helps in putting the theories into practice and bringing out general guidelines

from various hypotheses. New recruits in insurance industry, after training in

theoretical aspects, are exposed to practical aspects through role plays and joint

field calls.

It helps evaluate the abilities, competencies, and potentials of the trainees for a

particular job or work skills. The assessment centre concept, which is widely

adopted by organizations, is aimed to assess the skills/competencies/potentials of

employees and thereby plan for a career path for them.

It induces zeal and enthusiasm for self-learning and development among the

trainees. The induction training typically encompasses group and self learning

exercises, mainly to induce the self- and shared learning among the trainees.

It enhances the problem-solving and decision-making capabilities of the trainees.

The in-basket exercise, such as role-plays, used in off-the-job training is aimed at

improving the decision-making skills of trainees.


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It helps in narrowing down the gap between the expected level of performance

and the actual level of performance among the trainees.

It provides new recruits or trainees a scientific pace for imbibing the knowledge

and skills required to discharge their duties and responsibilities meaningfully and

purposefully.

Accordingly to Flippo, training is the act of increasing the knowledge and skills of

an employee for doing a particular job. The major outcome of training is

learning, i.e., transformation in the behavioral process in the form of increased

performance, technical know-how, performing the job more effectively, and also

preparing the individual for higher-level jobs.

NEED AND IMPORTANCE OF TRAINING

Training is mainly job-oriented; it aims at maintaining and improving current job

performance. The need for a training programme may arise due to the following:

ENTRY OF NEW RECRUITS: New entrants need training to attain clarity in

job responsibility, nature of the job, and other organizational matters so that

person-hours are not wasted.

PROMOTIONS: Preparation of employees for higher level jobs like promotions

requires skill upgradation or competency building.

TO PREVENT SKILL OBSOLESCENCE : Training and development

programmes foster the initiative and creativity of employees and help to prevent

obsolescence of skills, which may be due to an employer‘s age, temperament,

motivation level or inability to adapt to technological changes.

TO INCREASE PRODUCTIVITY: Instruction can help employees increase

their level of performance on their present assignment. Increased human


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performance often leads to increased operational productivity and increased

company profit.

TO IMPROVE QUALITY: With globalization, increased competitiveness has

resulted in greater emphasis on producing or delivering quality goods and

services. Hence training in quality maintenance and quality management becomes

essential.

TO MEET ORGANIZATIONAL OBJECTIVES: Future organizational goals,

plans dictate training of its existing workforce, particularly, where there is a

dearth of skills to match the needs of organizational plans.

TO IMPROVE ORGANIZATIONAL CLIMATE: Organizational climate

refers to the overall relations and effective orientations of the employees towards

the organization. These orientations may be positive or negative. Positive

orientations will result in increased productivity and employee morale. Training is

essential to maintain and sustain positive orientations or is employees.

TO PREVENT ACCIDENTS: Training can create awareness about safety

hazards and accident proneness and may equip the individuals with better

orientations to handle crises.

TO AVOID BOREDOM, MONOTONY AND FATIGUE: Refresher course

may be organized intermittently for all employees in the rank and file category to

relieve job fatigue and monotony of everyday work-file.

TO SUPPORT PERSONAL GROWTH AND DEVELOPMENT: Employees

gain a lot by training and developmental programmes. Management development

programmes seem to give participants a wider awareness, improved skills, and

enlightened artistic philosophy and make enhanced personal growth possible.


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BENEFITS FOR INDIVIDUALS

It enhances their skills / knowledge, which increase their personal worth and

employability.

It makes employees effective and efficient and as a result there is a reduction in

wastage of resources and time.

Employees can realize their career goals easily.

Career moves and job-hopping, which happen to be the order of the way, can be

made in a flexible manner.

There will be greater awareness, less errors, increased productivity, and boost in

morale of the employees.

BENEFITS FOR THE ORGANIZATION

There will be an increase in the intellectual capital of the organization.

Training helps in achieving higher standards of quality, building up a satisfactory

organizational structure, delegating authority, and motivating employees to

perform better.

Employee turnover and absenteeism are reduced.

Wastage is minimized.

Job enlargement and job enrichment programmes can be implemented easily.

Making training a continuous affair in the organization can strengthen employee

loyalty.

AREAS OF TRAINING

The broad areas in which training is usually imparted in organizations may be classified

under the following headings:


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Enhancing knowledge / building concepts – Basic principles or advanced inputs with

regard specific concepts or sometimes knowledge about company, culture, etc. form the

major themes in the training programme. For example, in the ICICI Bank, the training

programmes for the Branch Mangers on sales and marketing skills.

Technical skills – Often training programmes impart specific skills in the areas of

computers or operating machines. This is usually provided with the help of experts and

on the job. For instance, in the area of networking and security, the trainers are trained on

aspects such as network configuration, network security, intrusion detection system,

ethical hacking etc.

Interpersonal / behaviour skills – Here individuals are exposed to self-awareness

programmes to develop the right mental attitude towards their job colleagues and the

company. The main focus is on teaching the employer as to how to become a good team

member and lead the company. The T group training / sensitivity training are excellent

programmes for the purpose.

THE TRAINER

The function of imparting training is by and large the responsibility of the HR

department. The Director / General Manager/ Vice-President oversee the training

calendar, and identify appropriate people, and allocate various training programmes to

them. In organizations where the infrastructure is well developed, the HR managers may

conduct the training programme by themselves or by inviting other resources people. A

large group may then get trained at a time in such instances. In other occasions,

employees are sent off the job to some specific programme organized by independent

training agencies at a central location. Any organization can nominate its employees for


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the same. In this type, only a few people can get trained at a time, as many people cannot

be off the job at the same time.

A comprehensive and holistic training system would typically follow the following steps

in devising and implementing a training plan as detailed below:

A training plan is jointly prepared by the HR department and the training head

taking into account various parameters such as the corporate goals / objectives,

perspectives of the top management, present and future training needs identified

by the corporate office/branch / regional heads etc.

After preparation of tentative training plan, it is placed for consideration of the top

management for approval.

On approval of the top management, a training calendar is prepared and is widely

circulated among the branches / regions for information and dissemination.

The branch/ regional heads nominate the employees for the training depending

upon their training needs and also the job requirements.

The training programmes are designed optimally to encompass the theory with

hands on experience and also to ensure maximization of learning among the

participants.

The transfer of learning is to assist through performance measurement in the

annual performance appraisal, which ultimately leads to feedback for the

training system.

In most of the central public sectors and some of the state-level public enterprises, the

personnel department has identified a Manager (Training) whose specific responsibility is

to manage the training needs of the employees of their organization. He and his team

members organize the programmes in consultation with heads of department so that there

is minimum overlap or clash with the daily routine work of the organization.


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A TRAINING PROGRAMME

Training is most effective when it is planned, implemented and evaluated in a systematic

way. Unplanned, uncoordinated and haphazard training efforts greatly reduce the learning

that can be expected. Hence training efforts must aim at meeting the short-term

(individual) and long-term (organizational) goals. This involves conducting a preliminary

assessment of training needs at various levels in the organization. A specific training

programme may be a result organizational, group or individual requirements. A

preliminary identification of the needs would help the organization to act in a proactive

manner and realize its objectives. Therefore, we may consider identification of training

needs at the following levels:

1. Organizational

2. Group

3. Individual

TRAINING NEEDS AT THE ORGANIZATIONAL LEVEL

Some basic assumptions regarding the training needs of an organization are listed below:

The organization has objectives to achieve for the benefit of stakeholders

employees, customers supplies and neighbors.

These objectives can be achieved only by harnessing the abilities of its employees

and providing them opportunities to realize their full potential.

Therefore, people must know what they need to learn in order to achieve

organizational goals.

Training needs at the organizational level involve a study of the entire organization in

terms of its objectives and resources, utilization of various resources interaction patterns

in the environment, etc. most of the time, training needs address-specific problems in

operation and through a training programme solutions are obtained.


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Such problems are related to productivity, high costs, poor material, control poor quality,

excessive scrap grievances, high employee turnover, absenteeism, fatigue, failure to meet

standards and targets etc.

Often anticipating future problems like expansion of business, introduction of new

products and new services, new plants and organizational changes concerned with

manpower inventory for the present and future needs may also necessitate a training

programme. The business environment and the political socio-cultural and technological

factors and their influences in effective management might also prompt a training

programme.

Information about organization should be discussed with the top management and gaps in

the realization of objectives can be determined by getting feedback from employees and

conducting a survey.

TRAINING NEEDS AT THE GROUP LEVEL

An organization functions in a manner of high task interdependent and role relationships.

Organizational structure determines the positions that the individual will occupy and the

role relationships that are attached with it. While there is emphasis on individual

effectiveness, group processes and dynamic go a long way in bringing cohesiveness

among the employees. Hence managing subordinates, art of delegation, handling

superiors, bringing about inter-group process dependency, providing feedback counseling

mentoring and meeting the performance standards are some of the aspects that might

prompt a training programme.

Information in the above areas may be obtained by interacting with heads of the

departments‘ performance appraisals and conducting specific interviews with

customers/suppliers etc.


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TRAINING NEEDS AT THE INDIVIDUAL LEVEL

Training at the individual level may be required to improve performance modify deviant

or undesirable performance or behaviour or equip the individual with additional skills

which will result in capacity building and utilization. This step is closely related to

manpower analysis wherein the organization makes the assessment of present and future

skill requirements for the organization. Personal observation performance reviews

supervisory reports diagnostic tests and self-evolution help in collecting the required

information and selecting particular training options that would improve the performance

of employees.

If there is a match between individual needs and organizational requirements and the

employees are trained accordingly it would result in enhanced performance increased or

satisfaction and employee loyalty.

In general any training program will aim at the following:

Implementing (doing things well) for example meeting current organizational

objectives.

Improving (doing things better) for example setting higher objectives and trying

to reach them.

Innovating (doing new and better things) for example changing objectives and

strategies.

It is then obvious that identification of training needs may be prompted by one or a

combination of these aspects internal or external factors the processes or relationships the

functional heads or HR managers, external influences like major technological or

environmental changes and budgetary and time constraints


Page 29

3.3 TRAINING OBJECTIVES IN INSURANCE SECTOR

In insurance sector, the need to be well trained assumes gigantic proportions. A unique

feature as regards insurance is that it is not merely sufficient to have a properly trained

workforce; there is a need to spread the message of insurance among the populace. The

above, to a great extent, depend on the knowledge ability of the Sales Managers on

account of the interface that they are required to maintain with all the prospects. The best

of advertisements and other forms of spreading message would be no substitute for a job

well done by the intermediary.

The Sales Managers are the public face of the insurance company and make the most

enduring impact on the customer. The prospective policyholders today need professional

inputs from intermediaries whom they can trust and respect. Therefore, the undeclared

objective behind training the Sales Managers is their professionalization, making them

capable of ‗good‘ selling and thus ultimately benefitting the customer. Need analysis,

features and benefits, objection handling and closing skills are the key components of

quality insurance sales training.

When organization has invested in some training, how do we know if it has a success?

Our gut feeling might be that skills and practice have improved. But in what ways and by

how much has it improved, and did organization get value of money? Answers to these

questions can be found by doing evaluation

The evaluation of training forms the remaining part of the training cycle which starts with

the identification of training needs, establishing objectives and continues through to the

design and delivery of the training course itself.


Page 30

It is the function of evaluation to assess whether the learning objectives originally

identified have been satisfied and any deficiency rectified. It is part of a continuing

management process consisting of planning, implementation and evaluation; ideally with

each following the other in a continuous cycle until successful completion of the activity.

3.4 EVALUATION OF TRAINING

Evaluation process must start before training has begun and continue throughout the

whole learning process.

Donald Kirkpatrick developed four level models to assess training effectiveness.

According to him, evaluation always begins with level first and should move through

other levels in sequence.

KIRK PATRICK MODEL

The four-levels Kirk Patrick evaluation consist of

o Reaction - how the learners react to the learning process

o Learning - the extent to which the learners gain knowledge and skills

o Behavior - capability to perform the learned skills while on the job

o Results - includes such items as monetary, efficiency, moral, etc.

The chart below shows how the evaluation process fits together:


Page 31


Page 32

KIRK PATRICK MODEL

L E V E L O N E - R E A C T I O N

Evaluation at this level measures how the learners react to the training. This level

measures one thing: the learner's perception (reaction) of the course. Learners are often

keenly aware of what they need to know to accomplish a task. If the training program

fails to satisfy their needs, a determination should be made as to whether it's the fault of

the program design or delivery.

The interest, attention and motivation of the participants are often critical to the success

of any training process -- people often learn better when they react positively to the

learning environment by seeing the importance of it.

"Reaction may best be considered as how well the trainees liked a particular training

program". However, the less relevance the learning package is to a learner, then the more


Page 33

effort that has to be put into the design and presentation of the learning package. That is,

if it is not relevant to the learner, then the learning package has to "hook" the learner

through slick design, humor, games, etc. This is not to say that design, humor, or games

are unimportant; however, their use in a learning package should be to promote or aid the

"learning process" rather than the "learning package" itself. And if a learning package is

built of sound purpose and design, then it should support the learners in bridging a

performance gap.

L E V E L T W O - L E A R N I N G

This is the extent to which participants change attitudes, improve knowledge, and

increase skill as a result of participating in the learning process. It addresses the question:

Did the participants learn anything? The learning evaluation requires some type of post-

testing to ascertain what skills were learned during the training. In addition, the post-

testing is only valid when combined with pre-testing, so that you can differentiate

between what they already knew prior to training and what they actually learned during

the training program.

Measuring the learning that takes place in a training program is important in order to

validate the learning objectives. Evaluating the learning that has taken place typically

focuses on such questions as:

o What knowledge was acquired?

o What skills were developed or enhanced?

o What attitudes were changed?

L E V E L T H R E E - P E R F O R M A N C E ( B E H A V I O R )

This evaluation involves testing the capabilities to perform learned skills while on the

job, rather than in the classroom. Level three evaluations can be performed formally

http://www.nwlink.com/~Donclark/hrd/gap.html


Page 34

(testing) or informally (observation). It determines if the correct performance is now

occurring by answering the question, "Do people use their newly acquired learning on the

job?"

In Kirkpatrick's original four-levels of evaluation, he named this level as "behavior."

However, behavior is the action that is performed, while the final result of the behavior is

the performance. Performance has two aspects — behavior being the means and its

consequence being the end. If we were only worried about the behavioral aspect, then this

could be done in the training environment. However, the consequence of the behavior

(performance) is what we are really after — can the learner now perform and produce the

needed results in the working environment?

It is important to measure performance because the primary purpose of training is to

improve results by having the students learn new skills and knowledge and then actually

applying them to the job. Learning new skills and knowledge is no good to an

organization unless the participants actually use them in their work activities. Since level-

three measurements must take place after the learners have returned to their jobs, the

actual Level three measurements will typically involve someone closely involved with

the learner, such as a supervisor.

L E V E L F O U R - R E S U L T S

This is the final results that occur. It measures the training program's effectiveness, that

is, "What impact has the training achieved?" These impacts can include such items as

monetary, efficiency, moral, teamwork, etc.

As we move from level one to level four, the evaluation process becomes more difficult

and time-consuming; however, the higher levels provide information that is of

increasingly significant value. Perhaps the most frequently type of measurement is Level-

one because it is the easiest to measure, yet it provides the least valuable data. Measuring


Page 35

results that affect the organization is considerably more difficult, thus it is conducted less

frequently although it yields the most valuable information.

The first three-levels of Kirkpatrick's evaluation — Reaction, Learning, and Performance

are largely "soft" measurements; however, decision-makers who approve such training

programs, prefer results (returns or impacts).

1) Reaction informs you how relevant the training is to the work the learners perform (it

measures how well the training requirement analysis processes worked).

2) Learning informs you to the degree of relevance that the training package worked to

transfer KSAs from the training material to the learners (it measures how well the

design and development processes worked).

3) The performance level informs you of the degree that the learning can actually be

applied to the learner's job (it measures how well the performance analysis process

worked).

4) Impact informs you of the "return" the organization receives from the training.

Decision-makers prefer this harder "result," although not necessarily in dollars and

cents. For example, a recent study of financial and information technology

executives found that they consider both hard and soft "returns" when it comes to

customer-centric technologies, but give more weight to non-financial metrics

(soft), such as customer satisfaction and loyalty.

We may note the difference between "information" and "returns." That is, the first three-

levels give us the "information" for improving the learning package. While the fourth-

level gives us the "returns" for investing in the learning process. A hard result is generally

given in dollars and cents, while soft results are more informational in nature. There are

exceptions. For example, if the organizational vision is to provide learning opportunities

(perhaps to increase retention), then a level-two or level-three evaluation could be used to

provide a soft return.


Page 36

3.4.1. OBJECTIVES

DPLI spends a huge amount on the induction & training of a SM through Launch Pad

Process. Various research reports shows that attrition rate in the insurance industry is very

high. The main reason for such a high rate of attrition can be large-scale poaching in a

competitive environment.

So it is necessary for the insurance companies to groom their newly appointed officers in an

effective manner. The underlying premise for training of Sales Managers is that, it can not

only help in improving productivity of Sales Managers but also can enhance the overall

satisfaction level of Sales Managers and reduce the attrition level.

So for a company to retain its Sales Managers becomes the top priorty, a well designed

training can be one of the tools to achieve this. Therefore it becomes one of the competitive

tools for a company to distinguish itself from rest of the companies.

Therefore, we have analyzed the effectiveness of training program conducted for Sales

Managers and also calculated the Return on Investment for the first 30 days of the Launch

Pad training Process.


Page 37

THE MODEL IMPLEMENTED


Page 38

3.4.2. METHODOLOGY

Theoretical Study was attempted.

The relevant data was collected from both primary sources and secondary sources. The

starting point of my information gathering has been the secondary sources such as data

available with the company.

First, we made a study of the content of the training program and then interacted with

some of the Sales Managers already working for the company and took a feedback on the

Launch Pad training. I also interacted with some of the Trainers already working for the

company and took a feedback on how the training was conducted.

The scope of Level1 was all the regions of DPLI.

Collection and compilation of feedback from secondary data available with DPLI

for the first level i.e. Reaction Stage .Data was collected by the Training

department when training actually happened (about quality of the content of the

training material and its effectiveness, the trainer‘s skills, Infrastructure) (see

annexure1).

For Level 2:

The scope was all the regions of DPLI.

Collection and compilation of secondary data available with DPLI for the second

level i.e. Learning Stage.

To check the knowledge level of the SM‘s, trend in the Exit scores was checked

(see annexure 2)

To check the skill level of the SM‘s, Assessment Scores of the Sales Managers

after Launch Pad1 i.e. on 7th day of training given by Trainer was compared with

Assessment 2 given after Launch Pad 3 i.e. 30 days of training by Regional

Manager) and the trend was checked. (See annexure 2).


Page 39

For the 3rd

level i.e. Change in Skill Set:

The data was collected through a structured questionnaire with a set of questions

asked to the MP‘s. The questions were regarding the skills the SM‘s have

developed through training i.e. (after 30 or 60 or 90 days of training as per the

joining of the person) and the score was compared with LP-3 and finally a trend

was drawn for training effectiveness (see annexure 3).

Observation was done by going on Sales and Recruitment Calls with a Sample of

Sales Managers who‘s feedback has already been taken from the MP‘s regarding

the skills they have developed through training (after 30 or 60 or 90 days of

training as per the joining of the person) and would be compared with LP-3 and

finally a trend would be drawn for training effectiveness (see annexure 3).

The scope of Level 3 was restricted to Delhi and Chandigarh for convenience

sampling.

For the 4th

level i.e. Results data would be collected by:

Comparison of productivity of the Sales Managers who joined in JFM 2009 with

the productivity of the Sales Managers who joined in JFM 2010 Sales Manager‘s

who had undergone revised training. (See annexure 4).

Comparison of productivity of the Sales Managers who joined in OND 2009 with

the productivity of the Sales Managers who joined in JFM 2010 Sales Manager‘s

who had undergone revised training. (See annexure 4).

Comparison of the number of LA coded per SM man month achieved done by

Sales Managers who joined in JFM 2009 with the number of LA coded per SM

man month achieved done by Sales Managers who joined in JFM 2010 who had

undergone revised training. (See annexure 4).


Page 40

Comparison of the number of LA coded per SM man month achieved done by

Sales Managers who joined in OND 2009 with the number of LA coded per SM

man month achieved done by Sales Managers who joined in JFM 2010 who had

undergone revised training. (See annexure 4).

Comparison of attrition rate of the Sales Managers (i.e. JFM 2009) with the Sales

Manager‘s who had undergone revised training for JFM (2010) was done (see

annexure 4).

Comparison of attrition rate of the Sales Managers (i.e. OND 2009) with the Sales

Manager‘s who had undergone revised training for JFM (2010) was done (see

annexure 4)

For the 5th

level i.e. Return On Investment:

The data of the costs required for the training will be collected from secondary

sources (the bills that have been passed i.e. the actual cost incurred by the

company for the training) .This includes training cost ,travelling expenses, venue

expenses, books & printing cost, trainer‘s salary for 10 days, SM‘s salary for 10

days.

The return on investment has been calculated i.e. Average APE generated by an SM per

rupee spent on the training (see annexure 5).


Page 41

3.4.3 ANALYSIS AND FINDINGS

Through the above mentioned procedure, the following are the findings:

LEVEL 1:

The Average feedback Scores for Jan and Feb is 4.7 out of 5, which is very good.

For March the feedback score has fallen to 4.5, which is also good, but the trend is falling

and that has to be figured out.

By doing a detailed analysis it was found out that in almost all the sessions the scores has

dropped.

LEVEL 2:

First I checked whether there is any improvement in LP-3 from LP-1 .For this there was no

clear trend.

Then I tried to check is the rating given in LP-1 more. Even this was not the trend

I even tried to check the trend region wise and also trainer wise.

There is no exact trend in the i.e. when we try to compare LP-1 and LP-3 scores.

Out of a sample of 80 SM‘s, 37 SM‘s have improved and shows a positive change.

7 SM‘s show no change and 36 SM‘s show a negative change.

This was a mixture of all regions and there is no clear pattern.

LEVEL 3:

There was a clear cut improvement in the SM‘s understanding and level from LP-3 to the

time assessment was done by the MP when the SM was 30-90 days old in the system.

This was even observed by me on Sales and recruitment calls.


Page 42

OBSERVATIONS BASED ON CALLS AND ANALYSIS:

CHANDIGARH:

STRENGTHS

IMPROVEMENT AREAS


Page 43

DELHI:

STRENGTHS

IMPROVEMENT AREAS


Page 44

LEVEL 4:

LA Recruitment has increased by 300% from JFM 09 to JFM 10 and increased by 180%

from OND 09 to JFM 10.

SM Productivity per Man Month has increased by 64% from OND 09 to JFM 10.

Attrition levels after launch pad process within 60 days has reduced by 3% from OND 09

to JFM 10 and increased 1% from JFM 09 to JFM 10.

The reasons for Sales Managers attrition were:

Background Verification

Industry Change/Better Opportunities

Non Productive

Partiality/Office Politics

Manager Not Helpful


Page 45

3.4.4 RECOMMENDATIONS:

LEVEL 1:

1. Separate Launch Pad Sessions for Insurance & Non Insurance Candidates

2. Strengthen product and sales process training by way of case studies and more practical

training

3. Feedback scores should be shared with the trainers and the RCDM‘s for developmental

action.

LEVEL 2:

1. SM Tracking is unique to DPLI. However it would help if there is more uniformity in the

process of evaluation

2. The expectation level of Regional Managers and the Trainers has to be the same.

3. There should be more clarity in the way we use the rating system.

LEVEL 3:

1. MP should evaluate the person who is aspiring to become a LA and should give a rating

for LA‘s business potential

2. MP‘s should conduct weekly review of the calls done by the SM‘s.

3. Telephones and dedicated space should be assigned for LA‘s in the branch as lack of it is

not motivating the LA‘s to come to the branch

4. The ability of the MP/AP should improve in terms of having an open discussion with the

SM, because whatever is perceived important to the MP should be considered important

to the SM as well.

5. Calls should be continued by the AP/MP, with the SM ,if even after 60 days he is not

able to earn 12000 as commission


Page 46

3.4.5 CONCLUSION

The data clearly suggests that investment in training, in spite of attrition is yielding a

positive ROI (151%) and the current investment should be sustained, with the

improvements and the recommendations suggested.

3.4.6 LIMITATIONS

Sampling errors might have occurred

There was a difficulty in going on calls with the Sales Managers because of several

reasons like customer not responding, change in timings given by customer.

Some of the SM‘s do not want to fix calls because they do not use the tools

recommended.

The responses of the Managing Partners, Associate Partners may not be genuine.

The questions included in the questionnaire may not be comprehensive

The sales manager‘s behaviour and the way he handles a call would have changed in

assisted sales/recruitment calls

SUMMER INTERNSHIP

2010

47

4. NOTES:

1. Kirkpatrick, D. (1996). Great ideas revisited. Training and Development, 50(1),

54-59.

2. Kirkpatrick, D. (1994). Evaluating graining programs: the four levels. San

Francisco:Berrett-KochlerPublishers,Inc.

3. Parry, S. (1996). Measuring training's ROI. Training and Development, 50(5), 72-

77.

4. Phillips, J. (1997). Return of investment in training and performance improvement

programs. Houston: Gulf Publishing Company

5. http://leanlearning.wikispaces.com/learning analytics

Other references

BOOKS

1. Blanchard, P. Nick , Thacker, James W. , May 2006, Effective Training: Systems,

Strategies And Practices, Prentice Hall

2. Ford, Kevin, Goldstein, Irwin L. ,Goldstein David S, 2001, Training In

Organizations: Needs Assessment, Development, And Evaluation ,Wadsworth

Publishing Company

3. Aswathappa, K, 2003, Human Resource Management Text and Cases, Tata

McGraw Hill Publishing Ltd.

4. Jyothi P. and Venkatesh, D.N., 2006, New Delhi, Human Resource Management,

Oxford University Press

http://encyclopedia2.thefreedictionary.com/San+Francisco



http://encyclopedia.thefreedictionary.com/Gulf+Publishing+Company

http://www.flipkart.com/p-nick-blanchard/

http://www.flipkart.com/james-w-thacker/

http://www.flipkart.com/david-s-goldstein/

SUMMER INTERNSHIP

2010

48

5. GLOSSARY

1. DPLI DLF Pramerica Life Insurance

2. SM Sales Manager

3. MP Managing Partner

4. AP Associate Partner

5. ROI Return On Investment

6. LA Life Associate

7. RM Regional Manager

8. CDM Capability Development Manager

9. LP-1 Launch Pad 1

10. LP-3 Launch Pad 3

11. BVF Background Verification

12. ASM Associate Sales Manager

13. SSM Senior Sales Manager

14. APE Annual Premium Equivalent

15. YTD Year To Date

16. JFM January, February, March

17. OND October, November, December

18. PFS Partnering For Success

19. JFC Joint Field Calls

20. SP Sales Presenter

21. CAS Candidate Assessment Sheet

22. SN Social Networking

23. NAF Need Analysis Form

24. MM Man Month

25. R&R Rewards & Recognition

26. AML Anti Money Laundering


49

7. ANNEXURES

ANNEXURE 1

Launch Pad Feedback given by Sales Managers Level 1

Launch Pad Training Feedback National Update - Jan'10

Training Dates Average Scores

Top Box Rating

Over all Ergonomics Score 4.7 74%

Over all Faculty Score 4.9 86%

Over all Orientation Score 4.7 84%

Over all Sales Process

Score 4.7 80%

Over all Score Product

Session 4.6 78%

Over All Launch Pad

Score 4.7

Description Total Scores Top Box Top 2 Box

Ergonomics Infrastructure, other facilities 57 4.6 70% 93%


50

Training Schedule / Duration 57 4.6 74% 91%

Training Co-ordination & Organization 57 4.7 72% 98%

Training Environment 57 4.7 75% 98%

Course Material, Assignments (if any) 57 4.7 77% 95%

Faculty

How comfortable was the trainer with the topic being discussed? 57 4.9 91% 98%

How well did he make you understand / learn the concept 57 4.9 88% 98%

Was he able to resolve your queries / questions 57 4.8 86% 98%

Was he able to keep the group interested through the training 57 4.9 86% 100%

Were you comfortable with the pace of the sessions 57 4.8 81% 100%

Did he make you confident to implement the skills / knowledge learnt 57 4.9 86% 100%

Orientation

DLF Pramerica as an organization & career prospects 57 4.8 75% 100%

Understanding your role 57 4.7 68% 98%

Evangelizing Life Insurance 57 4.7 72% 98%

HR Policies & procedures 57 4.5 56% 93%

Sales Process

Prospecting Techniques 57 4.7 75% 98%

Approach and Objection Handling 57 4.7 72% 96%

Need Analysis Form 57 4.8 79% 96%

Closing 57 4.7 74% 96%

Session on Products

Basic Product Terminologies 57 4.6 67% 96%

Financial Basics 57 4.5 60% 91%

Rupee Cost Averaging & SIP 57 4.7 74% 95%

Term Plan 57 4.7 77% 96%

ULIP & AML 57 4.6 70% 93%


51

Description Average

Scores

Top Box

Ratings

Top 2

Box Ratings

Month

Erg

on

om

ics

Infrastructure, other facilities 3.9 34% 67%

Feb

-10

Training Schedule / Duration 4.4 62% 83%

Training Co-ordination & Organization 4.6 67% 89%

Training Environment 4.6 76% 88%

Course Material, Assignments (if any) 4.5 66% 88%

Subject Coverage 4.6 72% 91%

Fa

cult

y

How comfortable was the trainer with the topic being

discussed? 4.9 93% 96%

How well did he make you understand / learn the concept 4.8 86% 97%

Was he able to resolve your queries / questions 4.8 87% 96%

Was he able to keep the group interested through the

training 4.9 88% 97%

Were you comfortable with the pace of the sessions 4.8 84% 96%

Did he make you confident to implement the skills /

knowledge learnt 4.9 92% 99%

Over All Impression 4.8 84% 99%

Ori

enta

tio

n

DLF Pramerica as an organization & career prospects 4.8 86% 99%

Reward & recognition platforms? 4.8 86% 99%

Insurance terminologies and work habits? 4.8 78% 99%

HR Policies & procedures? 4.5 55% 95%

Sal

es

Pr

oce ss

How to use sales presenter? 4.8 80% 99%


52

How to use need analysis form? 4.8 78% 99%

How to pitch DPLI product to the customer? 4.8 80% 97% S

essi

on

on

Pro

du

cts

Basic Product Terminologies 4.7 70% 96%

Financial Basics 4.7 74% 97%

Family First 4.8 80% 100%

Future Idol Plus 4.8 79% 97%

Super Wealth Plus 4.7 70% 96%

Rec

ruit

men

t My role as a sales manager? 4.8 80% 96%

Recruitment Process? 4.8 78% 99%

Ideal profile of a Life Associate? 4.7 76% 97%

How to pitch agency as a carrier? 4.8 79% 96%

Over

All

On the whole, the training program was 4.9 87% 99%

4.7 77% 95%

Erg

on

om

ics

Infrastructure, other facilities 4.2 41% 86%

Mar-1

0

Training Schedule / Duration 4.2 45% 79%

Training Co-ordination & Organization 4.5 59% 97%

Training Environment 4.5 55% 97%

Course Material, Assignments (if any) 4.4 52% 90%

Subject Coverage 4.3 45% 90%

Fa

cult

y

How comfortable was the trainer with the topic being

discussed? 4.7 66% 100%

How well did he make you understand / learn the concept 4.2 41% 83%

Was he able to resolve your queries / questions 4.6 62% 97%

Was he able to keep the group interested through the

training 4.4 59% 93%

Were you comfortable with the pace of the sessions 4.4 59% 83%


53

Did he make you confident to implement the skills /

knowledge learnt 4.7 66% 100%

Over All Impression 4.6 66% 93% O

rien

tati

on

DLF Pramerica as an organization & career prospects 4.7 72% 100%

Reward & recognition platforms? 4.7 69% 97%

Insurance terminologies and work habits? 4.5 59% 93%

HR Policies & procedures? 4.4 59% 90%

Sale

s

Pro

cess

How to use sales presenter? 4.7 69% 97%

How to use need analysis form? 4.6 66% 93%

How to pitch DPLI product to the customer? 4.4 48% 90%

Ses

sion

on

Pro

du

cts

Basic Product Terminologies 4.4 48% 90%

Financial Basics 4.4 48% 90%

Family First 4.2 45% 83%

Future Idol Plus 4.5 59% 93%

Super Wealth Plus 4.4 55% 86%

Rec

ruit

men

t My role as a sales manager? 4.4 48% 93%

Recruitment Process? 4.3 45% 93%

Ideal profile of a Life Associate? 4.4 55% 90%

How to pitch agency as a carrier? 4.4 52% 93%

Ov

er

All

On the whole, the training program was 4.5 55% 97%

4.5 56% 92%


54

Table 1: Total No of Sales Managers

Month Jan Feb Mar

No Of Participants Taken 57 76 29

Graph 1: Overall Training Feedback (Average Scores Out Of 5)


55

Graph 2: TREND IN AVERAGE SCORE (FOR DIFFERENT SESSIONS IN THE TRAINING)

The rating was above 75% for all 3 months


56

Table 2: FINDINGS FOR TRAINING EFFECTIVENESS

S.NO.

Topics For

Training

Effectiveness

Calculated

Values

Jan Feb March

1.

How comfortable

was the trainer

with the topic

being discussed

Averages

Standard

Deviation

4.7

0.62

4.89

0.41

4.65

0.48

So this clearly shows that in Feb the trainer was the most comfortable followed by March and then Jan.

2.

How well did the

trainer make the

Sales Manager

understand /

learn the concept

Averages

Standard

Deviation

4.85

0.39

4.81

0.51

4.24

0.74

So this clearly shows that in Jan the trainers were the best in making the SM‘ learn the concept followed by Feb

and then March.


57

3.

Was the trainer

able to resolve

the queries /

questions

Averages

Standard

Deviation

4.84

0.41

4.82

0.47

4.58

0.56

So this clearly shows that in Jan the trainers were the best in resolving the queries followed by Feb and then

March.

4.

Did the trainer

make you

confident to

implement the

skills /

knowledge learnt

Averages

Standard

Deviation

4.86

0.35

4.9

0.33

4.65

0.48

So this clearly shows that in Feb the trainers were the best in making the SM‘s implement the knowledge learnt

followed by Jan and then March.

5. Session on how

to use a NAF

Averages

Standard

Deviation

4.76

0.504

4.69

0.501

4.58

0.627


58

So this clearly shows that in Jan the trainers were the best in conducting the session on NAF followed by Feb

and then March.

6.

Session on Basic

Product

Terminologies

Averages

Standard

Deviation

4.64

0.55

4.66

0.55

4.37

0.67

So this clearly shows that in Jan the trainers were the best in conducting the session on basics of product

terminologies followed by Feb and then March.

7. Session on

Financial Basics

Averages

Standard

Deviation

4.51

0.66

4.72

0.50

4.37

0.67

So this clearly shows that in Feb the trainers were the best in conducting the session on financial basics followed

by Jan and then March.


59

ANNEXURE 2

Table 3: For testing the knowledge level of the SM’s Level 2

Median Score – Exit Test

No of candidates evaluated: 190

Month LP-1

JFM 17

JAN 17

FEB 17

MARCH 18

86% of the Sales Managers have scored above 75% marks in the exit test


60

Table 4: For testing the skill level of the SM’s

Median Score – Assessment Scores

No of candidates evaluated: 80

Month LP-1 LP-3

JFM 3.2 3

JAN 2.5 3

FEB 3.4 3

MARCH 3 3


61

Graph 3: TREND IN LP-1 AND LP-3 SCORES REGION WISE


62

Graph 4: TREND IN LP-1 AND LP-3 SCORES TRAINER WISE

With this data in hand, unable to comment, about the skill level of the Sales Managers


63

Graph 5: Trend for 80 participants


64

Graph 6: The Change in level of scores from LP-1 to LP-3

There was a change in score from as high as 1.8 to as low as -2.2


65

ANNEXURE 3

Questionnaire for MP’s Level 3

DLF Pramerica Life Insurance Company

Feedback of the Sales Managers from the Managing Partner after 30 days of Launch Pad Training

Kaizen means "improvement". Kaizen involves never ending effort for improvement involving everyone in the organization

(To be filled by MP)

MP Name

Period

From:

Region & Branch Name

Sales Manager Name

To:

LP-1,Field Work and LP-3

This is an objective feedback exercise on the change in skills of the Sales Managers after 30 days of Launch Pad. Your feedback is valuable for continuous improvement


66

Kindly give your ratings for the Sales Manager on the following parameters

Ability to Introduce DPLI using a Sales Presenter

Unable to use SP at all

Unable to clearly read content of Sales Presenter

Could read content of SP clearly: unable to expand on contents.

Able to use sales presenter and build cohesive story but unable to handle objections.

Used the sales presenter easily and use it creatively for rapport building & Objection handling.

Ability to conduct a Need Analysis with the customer

Unable to introduce NAF & Tick top 2 priorities.

Able to build rapport & introduce NAF, Tick top 2 priorities.

Able to take priorities and complete all relevant calculations.

Could do all calculations and link back to priorities & money commitment.

Seamless transition from SD to NAF and completes in an effortless, conversation manner.

Ability to pitch DPLI product to the customer

Unable to connect money commitment to products

Begins product pitch no connect to NAF or priorities.

Was able to pitch product benefits connected with identified priorities in NAF

Was able to pitch product connected with priorities & Handle Objections

Was able to pitch multiple products in combo sales using NAF

Ability to make a prospective list of Life Associate's

Unable to put down 20 names with Phone No’s in a list.

Able to list down 20 names with Phone No’s, but no connect with LA Selection Criteria.

Able to list down 20 names, connect with LA Selection Criteria.

Is able make approach call to prospect list

Is able make approach call to prospect list, Handle objections and invite them to office.


67

Ability to pitch agency as a career

Unable to list any benefits of Agency Business

Able to state clearly 5 reasons why to become a LA

Able to Match Correct Value Proposition to LA's Aspirations

Matches Correct Value Proposition to LA's Aspirations& pitches for the long term.

Match Correct Value Proposition and pitches business expectations & work habits.

Ability to log in a complete non discrepant application form

>10 errors

Between 8 - 10 Between 4 - 7 Between 0-3 No errors

Understanding of the R&R and incentives post discussion

Unable to explain incentive earning and R&R

Able to explain incentive parameters but could not calculate his monthly incentive earning

Understand incentive parameters and can calculate monthly incentive earning

Understand incentive parameters and does back calculation of input required to earn desirable incentive

Designs a work plan based on his understanding of incentive structure and works according to it to achieve desirable results

What is the Input Tracker for the recruitment after JFC

Name Gathering () Give No's

Approach() Give No's

PFS CAS & SN 100 () Give No's

MP Interview() Give No's

Coding() Give No's

What is the Input Tracker for the sales after JFC

Calling Meeting Presenting Closing Referrals


68

Table 5:

Feedback by the MP‘s and AP‘s of Chandigarh Branch for Sales Managers who joined after December 2009 and who have

undergone 30 days of training.

Introduce

the

company

using

Sales

Presenter

Do a

Need

Analysis

with the

customer

Match

the

needs to

the

products

Identify

an ideal

life

associate

Pitch

agency

as a

career

Errors

in a

form

Understanding

R&R Average

5 2 5 5 3 4 3 3.86

5 2 5 5 3 4 3 3.86

5 2 5 5 3 4 3 3.86

5 3 5 5 4 3 5 4.29

4 5 5 5 4 3 4 4.29

5 5 5 5 5 3 5 4.71

5 5 5 5 5 3 5 4.71

4 3 3 5 3 3 3 3.43

5 4 3 5 3 3 3 3.71

4 3 3 5 3 3 3 3.43

4.70 3.40 4.40 5.00 3.60 3.30 3.70 4.01


69

Table 6:

Feedback done by me of Chandigarh Branch for the Sales Managers who joined after December 2009 and who have


Introduce

the

company

using

Sales

Presenter

Do a

Need

Analysis

with the

customer

Match

the

needs to

the

products

Identify

an ideal

life

associate

Pitch

agency

as a

career

Errors

in a

form

Understanding

R&R Average

4 2 3 4 3 4 3 3.33

5 4 3 5 5 4 5 4.33

5 3 4 4 4 4 3 4.00

4 3 4 5 4 3 3 3.83

4 3 3 4 2 3 3 3.17

5 5 5 5 5 3 5 4.71

5 5 5 5 5 3 5 4.71

4 3 3 5 3 3 3 3.43

5 4 3 5 3 3 3 3.71

4 3 3 5 3 3 3 3.43

4.50 3.50 3.60 4.70 3.70 3.30 3.60 3.87


70

Graph 7:

Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by MP (60-90 days

on the Job)

2.8

2.4

2.8 2.8

3.6

2.6

3

2.6

2

4.40

3.6

5

4 4

3.6

4.6

4 4

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9

lp-3

by MP


71

Graph 8:

Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by Me by

going on Calls (60-90 days on the Job)

4.00

3.6

5

3.2

4.00

3.6

3.2

4

4.4

2.8

2.4

2.8 2.8

3.6

2.6

3

2.6

2

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 2 3 4 5 6 7 8 9

by Me

lp-3

Inference:

Sales Managers are using the Skills learnt in training on the Job


72

Table 7:

Feedback by the MP‘s and AP‘s of Delhi Branches of Sales Managers who joined after December 2009 and who have


Introduce

the

company

using

Sales

Presenter

Do a

Need

Analysis

with the

customer

Match

the

needs to

the

products

Identify

an ideal

life

associate

Pitch

agency

as a

career

Errors

in a

form

Understanding

R&R Average

4 3 4 4 4 4 3 3.83

4 4 4 3 4 4 4 3.83

3 4 4 3 4 3 5 3.71

4 3 4 5 4 4 4 4.00

5 4 5 5 5 5 5 4.86

3 2 3 3 3 4 3 3.00

5 5 5 5 5 4 4 4.71

3 3 4 5 5 5 5 4.29

5 5 5 5 5 5 5 5.00

5 2 4 5 5 4 3 4.00

4 4 4 4 3 4 3 3.71

5 4 4 3 3 3 4 3.71

3 4 2 5 2 4 2 3.14

3 3 4 3 2 3 2 2.86

5 5 4 4 5 4 5 4.57

4.00 3.57 4.00 4.14 3.86 4.00 3.71 3.90


73

Table 8:

Feedback done by me of Delhi Branch for the Sales Managers who joined after December 2009 and who have undergone 30

days of training.

Introduce

the

company

using

Sales

Presenter

Do a

Need

Analysis

with the

customer

Match

the

needs to

the

products

Identify

an ideal

life

associate

Pitch

agency

as a

career

Errors

in a

form

Understanding

R&R Average

5 3 4 4 4 4 3 4.00

5 4 4 4 5 4 4 4.33

3 4 4 3 4 3 5 3.50

4 3 4 5 4 4 4 4.00

5 4 5 5 5 5 5 4.86

3 2 3 3 3 4 3 3.00

5 4 5 5 5 4 3 4.67

5 4 4 5 4 4 3 4.33

5 5 5 5 5 5 5 5.00

4 2 4 4 4 4 3 3.67

4 4 4 4 3 4 3 3.83

5 4 4 3 3 3 4 3.67

4 4 2 4 5 4 2 3.83

3 3 4 3 2 3 2 3.00

5 5 4 5 5 5 5 4.83

4.3 3.7 4.0 4.1 4.1 4.0 3.6 4.03


74

Graph 9:

Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by MP (60-90 days

on the Job)

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14

lp-3

MP after 30/60/90 days


75

Graph 10:

Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by ME by going on

calls (60-90 days on the Job)

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14

lp-3

Done by Me

Inference:

Sales Managers are using the Skills learnt in training on the Job


76

Table 9:

Average Scores Of the 9 SM‘s of Chandigarh and 15 SM‘s of Delhi on all the parameters asked in the questionnaire

Region

Introduce the

company using

Sales Presenter

Do a Need

Analysis with

the customer

Match the

needs to the

products

Identify an

ideal life

associate

Pitch

agency as a

career

Errors in a

form

Understanding

R&R

Delhi

4.00 3.57 4.00 4.14 3.86 4.00 3.71

Chandigarh

4.70 3.40 4.40 5.00 3.60 3.30 3.70

National 4.35 3.48 4.20 4.57 3.73 3.65 3.70


77

ANNEXURE 4: LEVEL 4

Graph 11:

TRENDS IN SM PRODUCTIVITY: Average APE per man month done by an ASM/SM/SSM. This includes self

sourcing and team business


78

Graph 12: TRENDS IN LA Coded /SM MM Achieved


79

Graph 13: TRENDS IN ATTRITION OF THE SALES MANAGERS WITHIN 30 DAYS OF JOINING


80

Graph 14: TRENDS IN ATTRITION WITHIN 60 DAYS OF JOINING


81

RESEARCH METHODOLOGY USED FOR LEVEL 3 AND 4

Chi-square test χ2: It is the test for independence. This tells us with confidence whether the rating given by the MP is

predictive of the number of LA coded by the SM.

Null Hypothesis H0: Rating given by MP has no impact on the number of LA coded by the SM

Alternate Hypothesis H1: Rating given by MP has impact on the number of LA coded by the SM

TABLE 10: RESULTS OF CHI-SQUARE

S.NO. Degrees of

freedom

Chi Square

Value

Calculated

Chi Square

Value from the

Table

Chi Square Test

1. 2 9.25 5.99 Null Hypothesis Rejected

So we can say with 95% confidence that Rating given by MP has impact on the number of LA coded by the SM


82

T-Test: To test the impact (positive or negative), confidence intervals for the difference between a pair of means

Null Hypothesis H0: The mean of the Rating given by MP for SM’s who have coded 0 LA’s is equal to the mean of the rating

given by MP for SM’s who have coded 1 LA’s

Alternate Hypothesis H1: Mean of the rating given by MP for SM’s who have coded 0 LA’s is less than the mean of the rating











83

TABLE 11: RESULTS OF T-TEST

S.NO. No Of LA’s

Coded

T Value

Calculated

T Value Critical T- Test

1. Between 1 and 2

LA’s Coded 0.056 0.05 Null Hypothesis Rejected

2. Between 0 and 2


3. Between 0 and 1


So it clearly means that SM‘s who have coded 2 LA‘s have significantly higher mean rating at 95% confidence level than people who have

coded 0 LA‘s .

SM’s who have coded 2 LA’s have significantly higher mean rating at 90% confidence level than people who have coded 1 LA’s

Inference: This clearly indicates that the rating given by MP’s is predictive of the number of LA’s actually coded by the SM.


84

ANNEXURE 5

TABLE 12: Calculation of the ROI –LEVEL 5

Launch Pad I Expenses

Cost Per Participant

10,594

Launch Pad III Expenses

Cost Per Participant

4,910

Salary Expenses for SM for 10 days

8,219

Salary Expenses for Trainer Cost per SM for 10 day LP

919

Total Cost per SM 24642

Average APE Generated (SM Productivity/MM) 37210

Return On Investment(APE Per Rupee Spent In the Training) 151%


85

ANNEXURE 6

Organization Structure


86

ANNEXURE 7:

DPLI’s Growth Plans

Uttar PradeshHaryana

Punjab

Gujrat

Del NCR

Uttaranchal

Rajasthan

Himachal Pradesh

Jammu

Kerela

New Locations in 2010

Existing Locations

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