A

PROJECT REPORT ON

STUDY OF HR POLICIES

AT

LIFE INSURANCE CO-OPERATION OF INDIA,

IN PARTIAL FULFILLMNET OF

MASTER IN BUSINESS ADMINISTRATION

( UNIVERSITY OF PUNE)

SUBMITTED BYMISS KHUSHBU RANI SINGH

MBA-II(HRM)

PROJECT GUIDEMRS. KHAIRE MAAM

MAHATMA GANDHI VIDYAMANDIR’SINSTITUTE OF MANAGEMENT AND RESEARCH

NASHIK.

ACKNOWLEDGEMENT

This report entitle “STUDY OF H.R. POLICIES “ of organization.It is the outcome of summer internship training at Life insurance cooperation of India

I wish to express my gratitude to Mr. For providing me an opportunity to carry out my summer project in this esteemed organization.

This report is the result of contribution,guidance and co-operation received from all the executive of various department of LIC COMPANY DHULE.,our college authority and my family members also both implicitly and explicitly,never can this report can be claimed as individual effort.

I profusely thanks my project guide MRS KHAIRE MAAM for her guidance through out the project work

I owe my sincere thanks to all those who helped me during my summer internship project work and took special efforts to see that I could learn as much as possible during the visit. Finally work alone cannot express and also thanks to everyone who gave their valuable time,skill and enthusiasm and to all who have offerd support and understand to make this project work a success.

Khushbu rani singh

CONTENTS

CHAPTER

TOPICS PAGE NO.

1 Introduction1.1 Object of project1.2 Objective of study1.3 Methodology of study1.4 Scope of study1.5 Limitations of the study

2 Profile of the organization2.1 History of the organisation2.2 Product of organization2.3 Organization chart

3 Related theory3.1 Human resource management3.2 Human resource policies3.3 Objective of H.R. policies3.4 Characteristics of H.R. policies3.5 Formulation of H.R policies3.6 The policies which are conducted by

organization

4 Data analysis & interpretation4.1 Data analysis and interpretation4.2 Finding and conclusion

5 Recommendations and suggestion

6 Annexure6.1 Reference6.3 Appendices

DECLARATION

I Khushbu rani singh hereby declare that the project report entitled “ TO STUDY H.R. POLICIES “.Is a genuine work done at LIC of India .The project is undertaken as a part of research project accomplished for the fulfillment of the MBA.

The matter embodies in this project report has not been submitted else where by anybody for the award of any other degree or diploma

Date:

Place:

(Khushbu rani singh)

CHAPTER: 1

INTRODUCTION

1.1)Object of the project

Summer training is an integeral part of MBA programs which extends to 60 days. The primary objective of the project carried out in “Master in Business Administration” is to gt a first-hand experience of business world,gain an insight in to the working of corporate world and develop our management skills. Thus ,it gives opportunity for the student to understand the working of an organization and to know the challenges involove in it, this help him/her to co-relate the theory part in the MBA course with the actual working environment of the industrial orginastion.

We are required to complete the project to the fullest satisfaction of the organization concerned and submitted a detail report to the concerned to the concerned authority. It include number of activities to be performed by the student like-selection of topic, collection of relevant data, and presentation of the data in systematic manner to find out a logical conclusion.

1.2) OBJECTIVES OF THE PROJECT

To study the existing h.r. policies of LIC Of India

To design the new h.r policies and procedure for LIC Of India.

1.3) Research methodolgyResearch :

Research is a common parlance refers to a search for knowledge .one can also define research as a scientific and systematic search for pertienent information on a specific topic .Reserach is an academic activity and as such term should be used in a technical sense.According to Clifford woody research comprise defining and redefining problems ,formulating hypothesis or suggested solutions,collecting.Organization and evaluating data; and last carefully testing the conclusions to determine whether they fit the formulating hypothesis .

Research methodology is a way to systematically solve the research problem .It may be he understood as a science of studying how research is done scientifically .In it we study the various steps that are generally adopted by a researcher in studying his research problem along with thelogic behind them.

The scope of researchmethodolgy is wider than of research methods .Thus when we talk of research methodology we not only talk of the research methods but also consider the logic behind the method we used in the context of our research study and explain why we are using a evaluate either by the researcher himself or by other.

Every project is carried out with some specific OBJECTIVE in the mind .Objective Is basically the purpose behind conducting a project and unless the objective of the project are nothing but what is to understood what data has to be collected .Objective of the project are nothing but what is to learned out of this project report .Research methodology is a systematic way of solving the research problem .It may be understood as a science of studying how research is done specifically .

In it I study the various steps that are generally adopted by research in studying his/her research problem along with the logic behind them.Research not only know how to develop certain tests how to apply particular research technique but they need to know which of the mehds are relevant and which are not .A researcher will always need to know the criteria by which they can decide techniques and problems will be applicable to certain problems.

So it is very important to understand research methodology before proceeding further for collecting data for a project work.As this project explain the H.R.policies in the organization .It is very important to explain what are source of data ,Which is been collected ,analyse and presented to come out with useful suggestion and recommendation. Mainly the data has been collected from HRD Department of ADHUNIK TRANSPORT ORGANIZATIOns and the person’s enities that provided this primary as well as secondary data is HR officer.

Mainly the data has been collected from HRD department of And the person’s entities that this primary ae well as secondary data is HR officer.

Now the data collected from the above personnel is:

1] PRIMARY DATA

2] SECONDARY DATA

PRIMARY DATADiscussions, informal interview of the above mentioned personnel revealed lot much data,which was first hand. The data collection method can come out with good quality data and also the non- verbal communication here plays an important roles as the information provider reveals the information to you in personal.

In this project data is collected by questionaries survey.

SAMPLING PLANSample technique : convenience sampling

Sample size : 60

Field of study :

Durations : 60

SECONDARY DATAThis is the data , which is provided by the above mentioned personnel but the main point of differentatios is about the way of delivering the data. This data is already collected and stored by the organization and made available to its employee as well as to the outsiders for their official use and with prior permission of the organistion.

This data is basically about internal HR policies and strategies which is been developed and published by the organization itself. The other source are mainly interacting and reference book on HRD.

So this is the basic rsearch methodology used in this report. The primary and secondary data both are important because they both have there pros nad corns,but the proper combination of these two type of data can be useful to this project work.

1.4) Scope of the study

The study will help to analyse the various organization policies.

The study will help the organisation to improve upon their policies which are conducted by them

1.5) Limitations of the study Data analysis is based on the information provide by the respondents..

CHAPTER: 2

PROFILE OF THE ORGANISATION

2.1) HISTORYThe 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 and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the

operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

Mission 

"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

2.2) Product/service of organisation

Life Insurance

Life Insurance is an important and the best for insurance as well as investment. You are not only covering the risk of your life but you even save for your future and for your family. You even save for your child’s education your retirement and your tax benefit.

In India the Life insurance is given less importance but we believe that each individual should save 20% for him so that in their absence their family or during retirement they have a happy life.

We will suggest you which is the best plan for you.

Have an insight of our planning to meet general requirement of life insurance.....

1. Child Education / Marriage Care

2. Happy Retirement Care

3. Liability Cover

4. Tax Planning + Life Planning

5. Corporate Insurance

6. Key Man Insurance

7. Partnership Insurance

8. Low cost term Insurance

9. Estate Creation

10. Policy Under Married Woman Protection Act

11. Design as per your requiremen

CHAPTER : 3

RELATED THEORY

3.1) HUMAN RESOURCE MANAGEMENT

Human resource is a crucial sub – system in the process management . actuatuing is the actual job of a manager . Getting work done by people by motivating them toward action, which means working with the people, winning their cooperation and engeries enthusiasm,is the real task of an active manager. In a nutshell,HRM is at the centre of actuating which forms the crux of prospective management.

Definition:

“ HUMAN RESOURCE MANAGEMENT IS THE PLANNING,ORGANISING, DIRECTING AND CONTROLLING OF THE PROCUREMENT,COMPENSATION,INTEGERATION AND MAINTENANCE OF PEOPLE FOR THE PURPOSE OF CONTRIBUTING TO ORGANISATION , INDIVIDUAL AND SOCIAL GOALS.”

-FLIPPO

3.2) HUMAN RESOURCE POLICIES

H.R. policy provides more specific guideline for decision making on matter relating to management of human resource. The term policy has been derived from the greeek word “ polities” meaning citizen and latin word “politis” means polished, that is to say clear. According to new Webster dictionary,policy means the art or manner of governing the nation, the line of conduct which rulers of a nation adopt on aparticular question,especially with regard to foreign countries the principle on which any measure or course of action is based in the organisation context.

Defination of Policy

“ A policy is a statement or general understand ehich provides guideline to the member of organisation for making decision in respect to any course of action”.

“policies defined how the company with stakeholder,employees,customer,suppliers distributors,and other important group.policies narrow the range of individual discretion so that employee act consistently on important issue”.

-KOTLER

An organisation may provide policies to dealing with external factors or for undertaking process which related to various functional are H.R policies may be defined as follows.

“ H.R POLICIES provide guideline for a variety of employment relationship and identified the organizations intentions in recruitment, selection,development,compensation,motivation and integeration of human resource”

3.3) 0bjective of human resource policies

To enable the organisation to have adequate,competent,and trained personnel at all level;

To provide such condition of employement that enable the personnel to develop a sincere sense of unity with the organisation and to carry out their duties in most willing and effective manner;

To provide and create a sense of responsibility on the part of those who directly deal with human resource to adopt a huamistic approach with a guaranteed protection of the fundamental rights of employees and their diginity.

To develop condition for mutual trust and co-operation between those who manage at all levels of the organisation;and

To establish condition for developing personnel and uitilisation of their full potential for their own benefits as well as for the benfits of the organization.

3.4) Characteristics of sound hr policies

A policy is somewhat a permanent features of an organisation . it being a tsanding plan provides guidline to managerial decision . therefore , policies should be developed on asound basis. If this is not done, managers have to make decision again and again.

Some major characteristic of asound policy can be identified as follow:

Relationship to organizational objective

Planned formulation

Fair amount of clarity

Balanced

Written communication

3.5) Formulation of human resource policies

3.6) The policies which are conducted by the organisation

Organisational philosophy

H.R philosophy

Policy Alternative

Policy maker

Policy action

Review

External factorInternal factor

In this project we concentrate the various HR policy in detail,which is held by the LIC of India likeCompensation & Retirals,superannuation scheme Loans,Leave policy, grievance resolution, travel policy and separation etc.

COMPENSATION & RETIRALS:

Base pay choice pay & PLI Employee’s salary will be structured under the following categories

Base pay : Basic + PF Choice pay : It include a menu of options for an employee to choose there in. Base pay & Choice Pay have 40:60 ratio . Performance Linked Incentives(PLI) : As mentioned in the appointment letter or

as per the company PLI policy .

Compulsory debits : These are the debt of group Personal Accident Insurance & Medical insurance & Medical Insurance.

Allowance:The term “Allowance” is used in some choice pay components. Allowance is paid every month irrespective of supporting/claim. For allowance if no supporting is produced by the financial year end, it is taxed as per IT Rules.Allowance in choice pay are: conveyance allowance,house rent allowance,leave travel allowance ,office wear allowance& child hostel & education allowance.

Reimbursement : The term “Reimbursement” is used in some choice pay component. Reimbursement is paid only in the month when supporting/claiming for the same are submitted by the employee Reimbursement in choice pay are : fuel & Maintainance Reimbursement & medical Reimbursement.

Choice pay component H ouse rent allowance:

Permissible limit : 50% of basic (metro cities ), 40% of basic (non- metro cities) Preconditions: rented accommodation. Lease agreement should be in the name of employee,copies of the same to be submitted

to HR & Income tax dept. Rent receipts to be submitted to income tax dept. twice in a year or as intimated by the

pay roll.

Medical claim insurance :Self – coverage is mandatory, which also covers spouse & dependent children at no extra premium. However, this is purely based on employees selection( dependent parents can be covered on payment of extra premium which will be deducted from CTC ).

PENSION OPTIONS PROVIDED BY LIC:

1. Life Pension ceasing at death.2. Life Pension with Return of Capital and Group Pension Terminal Bonus on death.3. Life Pension guaranteed for 5,10,15 or 20 years and life thereafter.4. Joint Life Pension payable on the last survivor of the employee and spouse.5. Joint Life Pension payable to the last survivor of the employee and spouse with return of

capital on the death of the last survivor. If desired , 1/3rd of the pension can be commuted at vesting.

ELIGIBILITY CONDITION:

It is not obligatory or statutory on the part of the employer to provide for pension to all employees. It is entirely upto him to decide to which class/ classes of employees he desires to extends the scheme. The eligibility conditions may be defined on the basis of designation or salary. (However, after the categories are specified, employer cannot discriminate between the employees and thus extends the scheme uniformly).

CONTRIBUTION:

The maximum annual contribution that an employer can make to the Pension Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of the annual salary (basic plus D.A.) The annual contributions are treated as deductible business expenses.

WHO PAYS CONTRIBUTION?

Mostly the employer contributes, but is so desired, both the employer and the employees may contribute, in which case the scheme is called a Contributory Pension Fund Scheme.

TAX BENEFITS:

The provisions relating to the approved Superannuation Scheme are set out in Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961 and Part XIII of the Income Tax Rules , 1962. The income tax concession will be available only if the scheme is approved by the CIT.

1. The annual contribution is treated as a deductible business expense in term of Section 36(1) (iv) of the I.T. Act.

2. In terms of a Notification issued by the Central Board of Direct Taxes .80% of the contribution (s) towards the past service liability are treated as deductible business expenses spread over in the subsequent years of payment.

The employee's contribution , in the case of the Contributions scheme qualifies for exemption under Section 80C of the Income-Tax Act

Traveling and daily allowances

1] Every non-official member shall be entitled to-

Traveling allowances for journeys performed by him in connection with the work of the Corporation at the rates admissible to officers of the first grade in the service of the Central Government;

Provided that every such member shall, when traveling by rail, be entitled to travel by air-conditioned accommodation if such accommodation is available.

Daily allowance as admissible to an Officer in the highest grade of the Corporation; and

Actual expenses of lodging charged by the hotel other than a 5 star hotel and an amount at the rate not exceeding the daily allowance specified in (i) as and by way of boarding and incidental expenses.

The total duration of tour for which halting expenses are admissible shall be calculated from the actual time or departure of the train or flight from the place of residence of the Member by the last available train or flight up to the time of the return thereto by the first available train or flight after completion of official business.

(2) The traveling and daily allowances of an official member shall be governed by the rules applicable to him for journeys performed on official duty; and in case such official member is not in the service of the Corporation, the Corporation shall make necessary reimbursement to the authority employing such official

Proof of travel

The individual needs to submit proof of travel to his/her employer and also keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc

Grievance resolution

Disputes may arise when people work together . many conflicts arise out of difference of understand whether between superior and employees or among peers. Most dispute can be resolved informally in immediate work area.

Grievance procedure

(1) Any person who has a grievance against an insurer, may himself or through his legal heirs make a complaint in writing to the Ombudsman within whose jurisdiction the branch or office of the insurer complaint against is located.

(2) The complaint shall be in writing duly signed by the complainant or through his legal heirs and shall state clearly the name and address of the complainant, the name of the branch or office of the insurer against which the complaint is made, the fact giving rise to complaint supported by documents, if any, relied on by the complainant, the nature and extent of the loss caused to the complainant and the relief sought from the Ombudsman.

(3) No complaint to the Ombudsman shall lie unless:-

(a) the complainants had before making a complaint to the Ombudsman made a written representation to the insurer named in the complaint and either insurer had rejected the complaint or the complainant had not received any reply within a period of one month after the insurer concerned received his representation or the complainant is not satisfied with the reply given to him by the insurer.

(b) the complaint is made not later than one year after the insurer had rejected the representation or sent his final reply on the representation of the complainant; and

(c) the complaint is not on the same subject matter, for which any proceedings before any court, or Consumer Forum, or arbitrator is pending or were so earlier.

Ombudsman to act fairly and equitably.:

(1) The Ombudsman may, if he deems fit, adopt a procedure other than mentioned in sub-rule (1) and (2) of Rule 13 for dealing with a claim: Provided that the Ombudsman may ask the parties for necessary papers in support of their respective claims and where he considers necessary, he may collect factual information available with the insurance company.

(2) The Ombudsman shall dispose of a complaint fairly and equitably.

Recommendations made by the Ombudsman:

(1) When a complaint is settled, through mediation of the Ombudsman, undertaken by him in pursuance of request made in writing by complainant and insurer through mutual agreement, the Ombudsman shall make a recommendation which he thinks fair in the circumstances of the case. The copies of the recommendation shall be sent to the complainant and the insurance company concerned. Such recommendation shall be made not later than one month from the date of the receipt of the complaint.

(2) If a complainant accepts the recommendation of the Ombudsman, he will sent a communication in writing within 15 days of the date of receipt of the recommendation. He will confirm his acceptance to Ombudsman and state clearly that the settlement reached is acceptable to him, in totally, in terms of recommendations made by the Ombudsman in full and final settlement of complaint.

(3) The Ombudsman shall sent to the insurance company a copy of the recommendation along with the acceptance letter received from the complainant. The insurer shall thereupon comply with the terms of the recommendations immediately not later than 15 days of the receipt of such recommendation and the insurer shall inform the Ombudsman of its compliance.

 

  Removal of a member

(1) The Central Government may remove any member, who, in the opinion of that Government, has so flagrantly abused in any manner his position as a member as to render his continuance as a member detrimental to the public interest.

(2) No member shall be removed under sub-rule(1) unless he has been given a reasonable opportunity of showing cause against his removal.

Term of office of members -

1. An official member shall hold office during the pleasure of the Central Government.

2. A non-official member shall hold office for a period of three2A years unless a shorter period is specified in the order of appointment.

3. An out-going member shall be eligible for re-appointment.

[3][3A] Office of Chairman : The Office of the Chairman shall be whole-time]

 

Report

The Annual Report to be submitted by the Corporation to the Central Government under section 27 of the Act regarding its activities during the previous financial year shall be in such form as the Central Government may, from time to time, direct and shall inter-alia contain particulars in respect of the following matters, namely;-

a. the extent of the new business;

b. the total amount of business in force;

c. the total amount of claims;

d. nature of investment; and

e. the accounts

Superannuation Scheme Provided by LIC:

The employer contributes a certain fixed percentage of salary of each member. Such Contributions are accumulated by LIC and the accumulated amount is utilized to provide various benefits as mentioned below.

BENEFITS:

1) ON RETIREMENT:On Retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per his choice.

2) ON DEATH:The Pension is payable on the life of the beneficiary. Corpus is utilized towards the payment of pension of the type the beneficiary may opt and the benefit so received is tax free. A lump sum payable by way of death besides the pension, if the employer has taken Group Insurance Scheme in conjunction with the Group Superannuation Scheme.

3) ON WITHDRAWAL:

He can get the equitable interest transferred to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.

GROUP INSURANCE SCHEME IN CONJUNCTION WITH SUPERANNUATION SCHEME:

The members of the Group Superannuation scheme can be covered under Group Insurance in conjunction with superannuation scheme so as to provide death risk cover while in service subject to certain conditions.

GROUP SIZE SCALE OF COVER MAX. LIMIT OF COVER

10-49 2 months salary for each year of future service on death 1.75 lakhs

50-99 2 months salary for each year of future service on death 3.00 lakhs

100 & more 2 months salary for each year of future service on death 4.00 lakhs

INTEREST RATES FOR 2004-2005

Fund Size Rate of Interest

Below Rs. 25 lakhs 7.40%

Rs. 25 lakhs or more but less than Rs.1 Crore 7.55%

Rs. 1 crore or more but less than Rs.10 Crores 7.75%

Rs. 10 Crores or more but less than Rs.50 crores 7.95%

Rs. 50 crores or more but less than Rs. 100 crores 8.05%

Rs. 100crores or more but less than Rs.200 crores 8.10%

More Than 200 Crores 8.20%

4.1 DATA ANLYSIS AND INTERPRETATION QUESTIONARARIES

1] For how many year do yu working in this organisation?

Srno. Options No.of respodents Percentage%

1 Below 1 year 18 30

2 1 year-3 year 22 36.666666

3 3 year-5 year 10 16.666666

5 Above 5 year 10 16.666666

Total 60

30%

36%

17%

17%

SalesBelow 1 year 1 year-3 year 3 year- 5 year Above 5 year

Interpretation

From the above data and graph it is come to know that 90% of the respondents are aware about the organization’s policies and that of 10% are not

2] Did you fully know about the companies policies before joining the organisation?

srno options No.of respondents Percentage%

1 Yes 54 90

2 No 6 10

total 60 100

20%

80%

Chart Title

YES NO

Interpretation

From the above data and graph it is come to know that 90% of the respondents are aware about the organisation’s policies and that of 10% are not .

3] Are you satisfied with management policies?

Srno Options No. of respondents Pecentage %

1. Satisfied 6 10

2. Not satisfied 33 55

3. Partially satified 21 35

Total 60 100

10%

55%

35%

Chart Title

satisfiedNot satisfiedpartially satisfied

Interpretation

10% employees are satisfied with the management policies, 55% are not satisfied and the remaining i.e 35% employee are partially satisfied with the policies which are conducted by the organization.

4] Nature of relationship between the employee in the organisation?

srno options No.of respondents Percentage%

1 Formal 48 8

2 Informal 6 10

3 Both 6 10

total 60 100

FormalInformal Both

Interpretation

The relationship between the employees in the organization is 80% formal 10% informal and the remaining 10% is for both i.e. formal and informal.

5] Are yu happy with job profile ?

srno options No. of respondents Precentage%

1 yes 57 95

2 No 3 5

total 60 100

20%

80%

Chart Title

YES NO

Interpretation

95% of the employees are happy about their job profile and their job profile and that of 5% are unhappy.

6] Are yu availing medical facilities provided by the organisation?

Sr. no options No.of respondents Percentage%

1 Yes 10 16.66666

2 No 50 83.33333

total 60 100

20%

80%

Chart Title

YES NO

Interpretation

17% of the employee are availing about the medical facilities of the organization but 83% are not and those who are not availing, it was said by them that at the time of interview they were not informed.

7] Type the reward preffered in the organisation?

Srno. options No. of respondents Percentage

1 Monetary 39 65

2 Non.monetary 21 35

3 both 0 0

total 60 100

65%

35%

Chart Title

monetarynon-monetaryboth

Interpretation

65% employees are saying that they are getting monetary types of reward and the remaining 35% are saying that they are getting non-monetary types of reward.

8] Are yu satisfied with the salary structured provide by an organisation?

Srno. options No.of respondents percentage

1 Yes 27 45

2 No 33 55

Total 60 100

20%

80%

Chart Title

YES NO

Interpretation

45% of the employees are satisfied with the salary structure provided by the organization and 55% are not satisified

10] Are yu satified with the leave policy of the organisation?

Srno. option No.of respondent pecentage

1 yes 15 25

2 no 45 75

total 60 100

20%

80%

Chart Title

YES NO

Interpretation 25% of the respondents are satisfied with the leave policy but 75% of the respondents are not satisfied which is provided by an organisation

10] Are yu happy with the allpwance given by the organisation?

Srno. Option No.of respondent Percentage

1. Yes 17 28.3333

2. No 43 71.6666

Total 60 100

20%

80%

Chart Title

YES NO

Interpretation

28% respondent is happy with the allowances given by an organization and 72% are not happy.

11] From the following type of allowance are given to yu?

Srno. Options No. of respondents

1 Conveyance 60

2 HRA 10

3 Travel 60

4 Health &saftey 0

5 Child education &hostel 15

Conveya

nceHRA

Trave

l

Health

& sa

fety

Child Ed

ucation &

Hostel

0

10

20

30

40

50

60

Series1

Interpretation

From the above data and graph it is come to know that all the employee are getting conveyance and travel allowance but not all the employee are getting HRA , Healthy and Saftey and child Education and hostel allowance.

Any bonus or special allowance given to you?

Srno. Option No.of respondents Percentage%

1 Yes 12 20

2 No 48 80

Total 60 100

20%

80%

Chart Title

YES NO

Interpretation20% employees are getting bonus and special allowance from the organization and 80% are not getting any bonus or special allowance.

13] Most of the employee are separated from the organisation by?

sr no Option No. of respondents

1. Resignation 48

2. Termination 15

3. Dismissal 4

4. Death 10

5. Completion of legal bond

0

Resignation Termination dismissal Death Completion of legal bond

0

5

10

15

20

25

30

35

40

45

50

Series1

Interpretation

The separation practices exercised by the organization for detaching the employee are mostly

done through resignation.

FINDINGS

The organization follows same HR policies and procedure in all over the India and it is as

per the rules and regulation of the act.

Most of the employees are known about the company policies.

Most of the employee are not satisfied by management policies.

It is also found that there is a good relationship between the employees in the

organization and all the employees are satisfied with there job .

Employees are not availing about medical facalities of the organization.

The company is providing rewards to their employees are either monetary or non-

monetary but not both.

Most of the employee are not satisfied with the leave policy.

Most of employees are not happy with the salary structure which is provided by the

organization

Employees are not satisfied with the allowance provided by the organization.

The employees are separated by the organization mostly by way of resignation and not

by other way as compare to the resignation

CONCLUSION

As this organization is having its branches all over the India so,the H.R. policies and

procedures are followed same in all over the India.

H.R. policy provides more specific guideline for making decisions on matters relating to

management of human resource. The H.R policies are followed in all over the Indian organization

But, in this organization most of the employee are satisfied by management policies but there are

some employee which are not satisfied regarding-Allowance, salary structure,leave policy etc.

and the management must satisy them by providing allowances like maternity allowance to the

female employee, medical allowance,etc

CHAPTER : 5

RECOMMENDATIONS AND SUGGESTIONS

5.1) suggestions The organisation must have to prepare a new salary structure for their employee by

which the employee will become happy and will more concentrate on their work which will be helpful to increase the productivity of the organisation.

The organistion should provide HEALTH provision under factories act. To the employee like

1. Cleanliness (sec. 11)2. Dust and fumes (sec.14)3. Drinking water (sec.18)

The organisation should also provide WELFARE provision under factories act to the employee like

1. Washing facilities(sec.42)2. Facilities for sitting(sec. 44)3. First aid appliances (sec. 45)

CHAPTER : 6

ANNEXURE

Reference Human resource management :

WWW.GOOGLE

HR.COM

Salary structure

Employee Id : Name :

Department : Designation :

Date of joining : PF Account no. :

Days Worked : ESI Account no. :

Bank Acct/Cheque no . : Father’s/husband,s name :

Earned leave : casual leave :

Earning Amount Deductions AmountBasic Pay

Dearness Allowance

Medical Allowance

Overtime

House Rent Allowance

Conveyance Allowance

Employee state insurance

Provident Fund

Professional Tax

Total Earnings Total Deductions Previous Balance IIet Pay (Rounded)

Carry over Round-off

------------------------------- -------------------------------------Employer’s signature Employere’s signature

Travel Requistion form

Date : Department :

Name : Location :

Employee level: Purpose of visit :

Date From To Flight/train/other Other requirement

No. ETD ETA CARHIRE

HOTEL STAY

Travel advances requiredNO. of Days Amount

(Per Day)Total Amount

Requested by : Mode of travel : Tickets brought by company/self

Approval of hr dept. Approval of director/RSM Approval accounts dept.

------------------------- ------------------------------------- ------------------------------------- (signature) (signature) (signature)

1. Proposal No

2. Date of

Commencement

3. Name of Grantees

4. Registered Address ofGrantees

5. Name of the scheme

6. Term

7. Member

8. Annual Renewal Date In relation to the scheme shall mean the-------and the------every year.

9. Beneficiary The person nominated by the Member to receive the benefitsunder the scheme in the event of death

10. Eligibility All permanent employees who are aged not less than 18years and not more than ------ years as per scheme

rules

11. Entry Date Entry Date’ shall mean (a) in relation to original Membersthe Annual Renewal Date and (b) in relation to newMembers admitted to the Scheme after the Annual RenewalDate, the 1st of the month or Annual Renewal Date which iscoincident with or immediately next follows the date onwhich they become eligible.

12. Normal Retirement

Date

The date on which Member attains the age of ----------

years.

13. Sum Assured Lumpsum amount (i.e. Life Cover Benefit) payable on deathin respect of a Member.

14. Death Benefit Sum Assured in respect of a Member under this plan asmentioned in Schedule- III along with Gratuity Benefit asper scheme rules

15. Resignation / RetirementBenefit

Gratuity Benefit as per scheme rules

16. Policy Account Policy Account shall mean the account to be maintained bythe Corporation in favour of the Grantees to which will becredited the Contribution (as described in Schedule-II).Gratuity Benefits shall be paid out of Policy Account.

17. Interest Payable As per Para 3 of Schedule –II

18. Charges As per Para 4 of Schedule –II

19. Bulk Exit As per Para 7 of Schedule –IV

20. Surrender As per Para 8 of Schedule –IV

POLICY DOCUMENT

GratuityFORMULA to calculate Gratuity

( last drawn salry *15*no.of years worked in service )/26.

In case seasonal employee:

( last drawn salary*7* no. of years worked in services)/26