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The Life Insurance Corporation of India (LIC) is the largest life insurance company in India and also the country's largest investor. It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It was founded in 1956. Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around one million and 200 thousand agents for soliciting life insurance business from the public. The corporation is an autonomous and has necessary to run on sound principles. The corporation has been carrying out the role assigned to it and justifying confidence of public by offering adequate security at reasonable cost, dependable service, economic management and favorable returns to the nation at large. In the year 1956, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office. Re-organization of LIC took place and large number of new branch offices was opened. As a result of re-organization, servicing functions were transferred to the branches, and branches made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200 crores of new business in 1957 the corporation crossed 1000 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had crossed 7000 crore sum assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LICs wide are network covers 100 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. LICs 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, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policy holders, LIC has launched 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 insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records; LIC of India traversed its long and illustrious journey and now has a vision to emerge as a world class customer centric organization.
Objectives of LIC:
Spread life insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost, is the main objective of LIC. Some other objectives of LIC are as follows: Maximize mobilization of peoples savings by making insurance linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policy holders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.
communication Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives.
The functions of HRM followed by LIC are as follows: Function 1 : Manpower planning
The penalties for not being correctly staffed are costly. Understaffing loses the business economies of scale and specialization, orders, customers and profits. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business. Planning staff levels requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance. What future demands will be is only influenced in part by the forecast of the personnel manager, whose main task may well be to scrutinize and modify the crude predictions of other managers. Future staffing needs will derive from: Sales and production forecasts The effects of technological change on task needs. Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc. Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.) Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements. Changes in Government policies (investment incentives, regional or trade grants, etc.). That, in turn, will involve the further planning of such recruitment, training, retraining, labor reductions (early retirement/redundancy) or changes in workforce utilization as will bring supply and demand into equilibrium, not just as a oneoff but as a continuing workforce planning exercise the inputs to which will need constant varying to reflect 'actual' as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side.
performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage; In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process). Effectively, selection is 'buying' an employee hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection. Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants. The main sources of recruitment are: Internal promotion and internal introductions (at times desirable for morale purposes) Careers officers (and careers masters at schools) University appointment boards Agencies for the unemployed Advertising (often via agents for specialist posts) or the use of other local media (e.g. commercial radio) Interviewing can be carried out by individuals, by panels of interviewers or in the form of sequential interviews by different experts and can vary from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are probably the most important, but techniques to aid judgment include selection testing for: Aptitudes (particularly useful for school leavers). Attainments General intelligence.
more likely to be influenced by things like job satisfaction, involvement, participation, etc. than the economically dependent employees of yesteryear. Hence human resource management acts as a source of information about and a source of inspiration for the application of the findings of behavioral science. It may be a matter of drawing the attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design, work organization and worker autonomy.
Basically an evaluation / appraisal scheme is a formalization of what is done in a more casual manner anyway. Most managers approve merit payment and that too calls for evaluation. Made a standard routine task, it aids the development of talent, warns the inefficient or uncaring and can be an effective form of motivation.
Among the activities regarded as normal are: Schemes for occupational sick pay, extended sick leave and access to the firm's medical adviser; Schemes for bereavement or other special leave; The rehabilitation of injured/unfit/ disabled employees and temporary or permanent move to lighter work; Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related; Provision of canteens and other catering facilities; Possibly assistance with financial and other aid to employees in difficulty (supervision, maybe, of an employee managed benevolent fund or scheme); Provision of information handbooks, Running of pre-retirement courses and similar fringe activities; Care for the welfare aspects of health and safety legislation and provision of first-aid training.
Briefing by senior staffs; Role-playing exercises and simulation of actual conditions; Video and computer teaching activities; Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation exercises and inspection and reporting techniques. Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify needs to modify or extend what is being provided. RECRUITMENTRecruitment at LIC: recruitment at LIC is done on all India bases. Class 1 officers are assistant administrative officers. Class 2 officers are development officers. Class 3 officers are assistant officers. Class 4 officers are the sub staff usually Job rotation is practiced in LIC means employees have to work in different departments. This is usually done to import different types of sails in their employees. Recruitment at LIC is done by central office at Mumbai. The recruitments process for above mentioned officers at LIC begins with placing at advertisements in popular national and regional newspapers across the country. Candidates applying for above mentioned posts should be between 21 and 28 years at age. They should be graduate/post graduate degree with minimum 50 % marks candidates from certain background(SC,ST,OBC) are given some commissions with regard to age and marks. Short listed candidates are asked to appear for an entrance examination. The entrance examination has 2 papers one is objective type and other is an essay type. The objective type paper test is intelligence, aptitude, mathematical knowledge, logical reasoning, general awareness and awareness of political and cultural events. After written test, candidates have to appear for interviews which are conducted by LIC officers across the country. Based on overall performance candidates reselected. There are basically 3 types of employees in LIC. First are the ones working on payroll basis? There are permanent employees of LIC and receive their monthly incomes. Second are the ones who are on temporary basis basically working for a year or 2 years approximately. They also receive their incomes on monthly basis. Third are the ones who are agents who are purely working on Commission basis. Their Commission is decided on the number of policy holders they track. Recruitment at LIC: recruitment at LIC is done on all India bases. Class 1 officers are assistant administrative officers. Class 2 officers are development officers. Class 3 officers are assistant officers. Class 4 officers are the sub staff usually Job rotation is practiced in LIC means employees have to work in different departments. This is usually done to import different types of sails in their employees. Recruitment at LIC is done by central office at Mumbai. The recruitments process for above mentioned officers at LIC begins with placing at advertisements in
popular national and regional newspapers across the country. Candidates applying for above mentioned posts should be between 21 and 28 years at age. They should be graduate/post graduate degree with minimum 50 % marks candidates from certain background(SC,ST,OBC) are given some commissions with regard to age and marksentrance examination has 2 papers one is objective type and other is an essay type. The objective type paper test is intelligence, aptitude, mathematical knowledge, logical reasoning, general awareness and awareness of political and cultural events. After written test, candidates have to appear for interviews which are conducted by LIC officers across the country. Based on overall performance candidates are selected. The different motivating programs like competitions are use. These are parameters to value them at different targets. The performance apparatus for employees is usually once in 1 year. 6 months after information. For class 1 officers its on financial year basis. For other employees its every calendar year. For class 1 officers double appraisal system is used. It is named as DOPA. Usually there is very much transparency in the organization. There is mutual agreement, planning agreement between employees and employees.