Professional Documents
Culture Documents
Life Insurance
Meaning of Business:
A business can be defined as an organization that provides goods and
services to others who want or need them. When many people think of business
careers, they often think of jobs in large we1althy corporations. Many business
related careers, however, exist in small businesses, non-profit organizations,
government agencies, and educational settings. Furthermore, you dont need a
degree in business to obtain many of these positions. In short, every sector of our
economy needs people with strong overall skills that can be applied to businesstype careers. There are a wide variety of career areas that exist in business settings.
Some of these include:
Accounting
Administrative Management
Business Management
Finance
Human Resources
Information Systems
Insurance
Marketing
Operations Management
Public Relations
Purchasing / Merchandising
Retail Management
Sales
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Sales
Sales
&&
Marketing
Marketing
Finance
Finance
And
And
Account
Account
Administration
and
Administration
and
ITIT
Research
&&
Research
Development
Development
Functions
ofof
Functions
Business
Business
Human
Human
Resources
Resources
Production
/ /
Production
Operations
Operations
Customer
Service
Customer
Service
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Features/Characteristics/Nature of HRM:
1. HRM involves management functions like planning, organizing, directing
and controlling
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management
psychology communication, economics and sociology.
5. It involves team spirit and team work.
Importance/Significance/Need of HRM:
HRM becomes significant for business organization due to the following reasons.
1. Objective:
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
HRM helps a company to achieve its objective from time to time by creating
a positive attitude among workers. Reducing wastage and making maximum use of
resources etc.
2. Facilitates professional growth:
Due to proper HR policies employees are trained well and this makes them
ready for future promotions. Their talent can be utilized not only in the company in
which they are currently working but also in other companies which the employees
may join in the future.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
2. Ensuring that employees knowledge and skills are kept up-to date.
3. Aligning the HR development and learning strategies with the overall strategies
of the insurance.
4. Devising strategies to motivate the employees by means of a suitable
compensation structure.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
internally. However the external environment affects HRM functions. The major
functions of human resource management are:
1. Human Resource Planning:
Human resource planning is the process of assessing the organizations
human resources needs in the light of organizational goals & changing conditions
& making plans to ensure that a competent, motivated work force is employed.
Human resource planning is very important in these modern times where
everything is fluid & changes are occurring at great speed.
2. Organizational & job design:
An important activity of HRM is developing an organization which caters
for all the activities required, groups them together in a way which encourages
integration, co-operation, & provides for effective communication & decision
making.
Job design is concerned with deciding on the content & accountabilities of
jobs in order to motivate employees & maximize job satisfaction.
3. Staffing:
Staffing or acquisition of human resources is another activity of human
resource management. Staffing activities determine the composition of an
organizations human resource.
Staffing activities includes attracting qualified people to the organization,
selecting candidates, reassigning employees through transfer, promotion, or
demotion & ultimately managing the employees separation through resignation,
discharge or retirement.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Organization improvement:
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
1. Size of the organization: The larger the organization, the more is the need to
set up a HR department.
2. Management Philosophy: The importance the management of the organization
places on its human resource & sees it as a vital factor towards attainment of
organizational objectives significantly influences their decision to set up a HR
department.
Other factors that influence establishment & structure of human resources
department are:
1. The extent to which the organizations operations are decentralized.
2. The type of work carried out.
3. The kind of people employed.
4. The role assigned to the HR function.
5. The type of services the HR department is expected to provide.
The human resource department is typically responsible for the effective
management of the various personnel systems. However, the human resource
managers usually share responsibility for personnel activities with other managers.
These activities are usually performed in cooperation with other managers from
other departments throughout the organization.
The following diagram illustrates the common structure of the human
resource department:
PRESIDENT/DIRECTOR (HUMAN RESOURCES)
Manager
Manager
Manager
Manager
Manager
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Recruitment
&
Selection
Training
&
Development
Compensation
&
Benefits
Employee
Employee
Welfare
Relations
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
3. Career Development:
Career development involves two processes:
a) Career planning: It involves helping the employee develop a realistic career
plan. This is done by assessing the skills & abilities of the employee with the
assistance of an expert.
b) Career management: The focus here is on taking the necessary steps to
achieve the career plan. The emphasis is on what the organization can do to
help in the employees career development.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
5. A holistic approach:
HR mangers must have a holistic approach. As per the holistic
approach:
a) Managers must not merely look at problems & issues as isolated events but
in terms of their impact on the whole organization. Managers must look at
people-organization relationships carefully.
b) Managers need to think in terms of what impact a decision will have on the
whole person, whole group, whole organization & whole social system.
6. Good understanding of human nature & social environment:
A good HR manager must have a good knowledge & understanding
of human psychology. He must know what motivates & drives people. A good
knowledge of the differences across cultures can also greatly enhance the
effectiveness of a HR professional.
HUMAN
RESOURCE
PLANNING,
RECRUITMENT,
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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plans are usually for a period of 5 years or more & are prepared on the basis of
trends in the economy, labor market & production.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
RECRUITMENT
The acquisition of human resource for the organization takes place through
the process of recruitment & selection. After the human resource needs of the
organization are identified through human resource planning, the next step is that
of recruitment & selection. One of the most difficult tasks of the human resource
manager is that of recruitment & selecting the right kind of people for the
organization.
Recruitment is the first step towards procuring qualified manpower for the
organization. The process of acquiring human resource beings with recruitment
continues with selection & ceases with placement.
According to Edwin Flippo, recruitment is the process of searching for
prospective employees & stimulating & encouraging them to apply for jobs in an
organization.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Sources of Recruitment
The various sources of recruitment may be broadly classified in to two broad
categories i.e. Internal & External sources. Some organizations draw their human
resource internally i.e. from within the organization while other draw externally i.e.
from outside the organization.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
The internal sources of recruitment focus on finding qualified applicants within the
organization. The organization itself is the best source of applicants for position
above the entry level. The internal source of recruitment may be of the following
types:
1. Promotions
2. Transfers
3. Job posting (internal advertisements)
4. Recall of retired & ex-employees
5. Employee referrals
6. Skills Inventories
A new development in this area is the Human Resource Information System
(HRIS). It is a computerized system that assists in the processing of HRM
information. It provides skill inventory information. The HRIS is designed to
quickly fulfill the personnel information needs of the organization. It permits the
organizational to track most information about an employee & about jobs &
retrieve that when it is needed. HRIS is extremely useful for storing employment,
training & compensation information on each employee.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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SELECTION
Once an effective recruitment program has been carried out & supplied
enough job applicants, the next step is that of choosing the best candidates for
specific jobs. Selection is the next logical step in the human resource process after
recruitment.
Selection is the process of choosing the most suitable person out of all the
applicants. It is the process of choosing individuals possessing the required
qualifications & skills to perform the job successfully.
According to Thomas Stone, selection is the process of differentiating
between applicants in order to identify & hire those with a greater likelihood of
success on the job.
Selection involves screening of candidates. Screening is a process of
reducing the number of applicants to a few by way of rejecting the candidates who
are not found eligible as per the qualifications prescribed. Selection of employees
is a managerial decision. It is the management which fixes the criteria for selection.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Often the terms recruitment & selection are used interchangeably & are
confused with each other. Selection is, however, different from recruitment. There
is a fine line of distinction between the two.
The following are the main differences between recruitment & selection:
1. Recruitment is the process of identifying & encouraging prospective employees
to apply for jobs. Selection, on the other hand, is the process of choosing the
best out of those recruited.
2. Recruitment involves attracting & searching for candidates whereas selection
involves comparing & choosing candidates.
3. Recruitment is positive in its approach as it aims at increasing the number of
applicants for a wider choice. In contrast, selection is negative as it rejects a
large number of applicants to identify the few who are suitable for the job.
INDUCTION:
When an employee joins the organization, the first few days are ones of
great uncertainty. Even the calmest & most competent employee feels a little
nervous & insecure. This is because he is unfamiliar with the new surroundings;
new coworkers 7 new job procedures. Induction programs are also commonly
referred to as orientation programs.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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Training Objectives
Training objectives are one of the most important parts of training program.
While some people think of training objective as a waste of valuable time. The
counterargument here is that resources are always limited and the training
objectives actually lead the design of training. It provides the clear guidelines and
develops the training program in less time because objectives focus specifically on
needs. It helps in adhering to a plan.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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Training objective tell the trainee that what is expected out of him at the end
of the training program. Training objectives are of great significance from a
number of stakeholder perspectives,
1. Trainer
2. Trainee
3. Designer
4. Evaluator
1. Trainer:
The training objective is also beneficial to trainer because it helps the trainer
to measure the progress of trainees and make the required adjustments. Also,
trainer comes in a position to establish a relationship between objectives and
particular segments of training.
2. Trainee:
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
3. Designer:
The training objective is beneficial to the training designer because if the
designer is aware what is to be achieved in the end then hell buy the training
package according to that only. The training designer would then look for the
training methods, training equipments, and training content accordingly to achieve
those objectives. Furthermore, planning always helps in dealing effectively in an
unexpected situation. Consider an example; the objective of one training program
is to deal effectively with customers to increase the sales. Since the objective is
known, the designer will design a training program that will include ways to
improve the interpersonal skills, such as verbal and non verbal language, dealing in
unexpected situation i.e. when there is a defect in a product or when a customer is
angry.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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PERFORMANCE APPRAISAL
Performance Appraisal is a process supporting the use of human resource in
an organization. It is possibly managements most powerful tool in controlling
performance and productivity of human resources in the organization. Used
effectively, it can have tremendous strategic potential for governing employee
behavior and in turn, organizations direction through its dynamic links to
selection, training, career-path planning and reward systems.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
& are likely to bring considerable group pressure on the managers & the
supervisors to keep appraisals.
2. Lack of time:
Managers often have many responsibilities & numerous subordinates. Hence
they often lack the time to gather sufficient information & conduct a proper
performance appraisal.
3. Lack of reward:
All thought organizations emphasize the importance of good performance
appraisals; there are no rewards to the appraisers for doing a job well. Neither are
there any sanctions (penal action) for inaccurate appraisals. Hence there is no
motivation for the appraisers to take their work seriously.
4. Appraisal politics:
In organizations where all raters are inflating the rating of their subordinates,
a good rater has to play politics in order to protect and enhance the career prospects
of his subordinates.
5. Lack of training:
Managers often lack the required training and experience to conduct a proper
and fair appraisal. Due to lack of training they often conduct the appraisal in an
unscientific manner commit difference types of errors.
6. Poor appraisal form:
Many appraisal forms are very ambiguous (vague) and extremely complex
in nature .Raters are often not sure what they are evaluating. Some appraisal forms
are deficient some vital aspect of job performance is missing .at time the
appraisal forms are contaminated they contain irrelevant performance dimension.
7. Avoid negative reaction:
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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Poor ratings result in defensive and hostile reactions from the subordinates that
create a stressful situation for the rater. In order to avoid such managers tend to
give uniformly high ratings to all the subordinates.
8. Organizational needs:
Organizational need high ratings to guarantee promotions, salary increases, &
provide employees with other valued rewards. Low rating would result in
employees being deprived of these rewards. Managers are often motivated to
obtain these rewards for their subordinates which results in inflated ratings.
9. Poor reflection on the manger:
The ratings of the subordinates are often considered as a reflection of the
managers ability to develop his juniors. Thus while high ratings make the mangers
look good, poor rating of the subordinates show the manger in poor light. Hence in
order to show that they are doing a good job, managers are tempted to give high
ratings to their subordinates.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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expenses. It has assets estimated of Rs. 8 trillion (US$ 178.4 billion). 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 1.2 million agents for soliciting
life insurance business from the public. The recent Economic Times Brand Equity
Survey rated LIC as the No. 1 Service Brand of the Country.
In the financial year 2006-07 Life Insurance Corporation of India's number
of policy holders are said to have crossed a whopping 200 million (fourth in terms
of population of the countries of the world). Its subsidiaries include Life Insurance
Corporation of India International, LIC Nepal, LIC Lanka, LIC Housing Finance
and LICHFL Care Homes.
LIC saw computers in 1964. Today the company is on the Internet and is
utilizing Information Technology in servicing its clients. It has bagged various
award including Loyalty Awards 2008 in Insurance Sector, NDTV Profit Business
Leadership Award 2007, CNBC Awaaz Consumer Awards 2007 and Outlook
Money NDTV Profit Awards 2007. LIC provides a rewarding career as sales
agents. It offers world class training, freedom to work and unmatched financial
strength.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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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."
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Vision
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India."
Awards:
INDY's Silver Award for best Corporate Film.
Management Team
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
ICICI Bank
ICICI Bank Ltd is India's largest private sector bank and the second largest
bank in the country with consolidated total assets of about US$ 102 billion as of
June 30, 2009. ICICI Banks subsidiaries include Indias leading private sector
insurance companies and among its largest securities brokerage firms, mutual
funds and private equity firms. ICICI Banks presence currently spans 19 countries,
including India.
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the
UK, Europe, US, Asia and the Middle East, provides retail financial services
products and services to more than 21 million customers, policyholder and unit
holders and manages over 249 billion of funds worldwide (as of March, 2009). In
Asia, Prudential is the leading Europe-based life insurer with life operations in
China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset
management companies in terms of overall assets sourced in Asia ex-japan, with
36.8 billion funds under management (as of March, 2009) and operations in ten
markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore,
Taiwan, Vietnam and United Arab Emirates.
Vision
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.
Values
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundary less, Ownership, and Passion. These values
shine forth in all they do, and have become the keystones of their success.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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Awards
The first runner up award for the Best Defect Elimination in Service &
Transaction category at Asian Six Sigma Excellence Summit 2009.
The International Service Excellence Awards 2009.
Insurance brand in the Brand Equity "Most Trusted Brands 2009" survey.
ICICI Prudential Life Insurance was awarded with the coveted 'ICAI Award for
Excellence in Financial Reporting' by the Institute of Chartered Accountants of
India (ICAI) for the financial year ended March 31, 2008.
ICICI Prudential Life was awarded the Life Insurance Company of the Year at
the12th Asia Insurance Industry Awards 2008.
ICICI Prudential Life was awarded with two Bronze Effie's in the services
category for its corporate campaign and Retirement Number campaign.
ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner
up at the Outlook Money & NDTV Profit Awards 2008.
ICICI Prudential Life was awarded the SAP ACE 2008 Best Business Objects
Award for its IT practices.
ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008
in three key categories for its marketing initiatives.
India's Most Customer Responsive Insurance Company. Avaya Global Connect
-Economic Times. Customer Responsiveness Awards, 2007.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
By the utilization of their resources, firstly it is checked that either there is any job
placement or company is expanding their business so that new jobs are open for
new candidates. All these issues are tackled by the HR manger and their respective
staff. If staff is required then company tries to find them inside the company by
upgrading their employees if it not possible then new jobs are created and fill by the
outside market.
Recruitment At LIC:
Recruitment at LIC is done by the Central Office at Mumbai. The recruitment
process for Assistant Administrative Officers (AAOs) at LIC begins with the
placing of administrative in popular national & regional newspapers across the
country.
Candidates applying for the post of AAOs should be between 21 & 28 years
of age. They should hold a graduate/postgraduate degree in any subject with
minimum of 50% marks. Candidates from certain background (SC, ST, and OBC)
are given some concessions with regard to age & marks.
Short-listed candidates are asked to appear for an entrance examination. The
entrance examination has two papers one is of an objective type & the other an
essay type. The objective type paper tests intelligence, aptitude, mathematical
knowledge, logical reasoning, general knowledge, & awareness of political &
cultural events.
After the written test, candidates have to appear for interviews, which are
conducted by LIC offices across the country. Based on their performance,
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
8.
Insurance
Head
Branch
Advisor
2.
7.
Recruitment
Cashier
Officer
6.
3.
BDOPS
Unit
Department
Manager
4.
5.
Receptio
n
Sales
Manager
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Unit Manager: Unit Manager is the Person who recruits the Recruitment
Officers i.e. all the Recruitment Officers will be under the Unit Manager of the
company. And also all Financial Advisors are also under the Unit Manager of the
Company. In this case, The FSP form will properly sign and again check by the
Unit Manager and if there is any rejection in case then that will be solve by the
Unit Manager of the company.
4. Sales Manager: Sales Manager is the Person who takes the Personal Interview
of Insurance Advisors and that FSP form is send to Sales Manager. In Practically
Sales Manager is not needed for the Recruitment Process.
5. Reception: The FSP form is send to receptionist for check out the rejection if
any i.e. The FSP form is login to receptionist before 4.30 p.m. according to the
rules and regulation of the company.
6. BDOPS Department: Bibliographic Databases Operations department.
BDOPS Department is the department who finalized the FSP form and accepts
the form, if there is no rejection. If there is any rejection then that rejection
Form is directly sends to Unit Manager of the Company.
7. Cashier: Cashier is the Person who gives the Acknowledgement Slip after the
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
The company does not follow any reservation policy for SCs and STs etc for
recruiting the candidates. They only look for the eligible candidates.
Selection at LIC:
Selection of candidates will be based on performance in Group Discussion /
Interview and or written test, if need arise. Candidates will be tested for their
knowledge in General Awareness, Financial Products, Marketing Skills,
Aptitude, Flair for interaction with customers, etc. Candidates qualifying in the
Group Discussion/Interview and/or written test shall appear for a pre-selection
medical examination. Candidates found medically fit in the pre-selection
medical examination will be engaged as Senior Marketing Executives.
Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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who pass the tests, interviews and reference checks. The view of line manager
will be generally considered in the final selection because it is he/she who is
responsible for the performance of the new employee. The HR manager plays a
crucial role in the final decision.
7. Physical Examination: After the selection decision and before the job offer is
made, the candidate is required to undergo a physical fitness test. The result of
the medical fitness test is recorded in a statement and is preserved in the
personal records. The main objectives of this test are as follows:
To detect if the individual carries any infectious diseases.
To determine whether an applicant is physically fit to perform the work.
It helps to determine if there are any physical capabilities which differentiate
successful and less successful employees.
Medical checkup protects applicants with health defects from undertaking
work that could be detrimental to them or might otherwise endanger the
employers property.
Last, but not the least such examination will protect the employer from
workers compensation claims that are not valid because the injuries or illness
was present when the employee was hired.
8. Job offer: The next step is selection process is Job offer for those applicants
who had passed the previous stage. Job offer is made through a letter of
appointment. Such a letter usually contains the date by which the appointee must
report on duty. Appointee must be given a reasonable time for reporting because
it may be quite possible that the appointee is employed in some other company
or must be residing in some other city and for such other reasons. Company may
also want the appointee to delay in joining the job because the job may require
undergoing some training program.
9. Contract of employment: After the job offer is made and the candidates accept
the offer, certain documents need to be executed by the employer and the
candidate. One such document is Attestation (confirmation) form. This form
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
contains vital details about the candidate, which are authenticated and attested
by him/her, which could be used for future reference.
Another document is contract of employment. This document contains the terms
and conditions of employment like designation, term of job and so on. The
information written in the contract may vary according to the level of the job.
10.
Concluding the selection process: The selection process will not end with
executing the employment contract. The step is reassuring the candidates who have
not been selected. Such candidates must be told that they were not selected, not
because of any serious deficiencies in their personalities, but because their profiles
did not match the requirements of the organization.
11. Evaluation of selection process: The broad test if the effectiveness of the
selection process is the quality of the personnel is hired. An organization must have
competent and committed personnel. The selection process, if properly done, will
ensure availability of such employees. Audit must be conducted by the people who
work independent of the HR department.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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feature is that the client company need not perform personnel activities such as
hiring compensation or record keeping. Employees working elsewhere are
leased. They are not directly employed by the company where they are working.
Employees not recruited by one client are sent to another.
Selection by invitation: Management observes the performance of the key
executives of competitors. If the performance of the key executives is excellent
or the key executives are the change agents, the management invites them to
join the organization by offering attractive salary and benefits. Thus, the
significant performance of the executives forms basis for selecting them by
invitation.
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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scenario has been changed, with the coming up of big players like ICICI Lombard,
HDFC Life Insurance, Tata AIG General Insurance, etc in this sector, people
who've had some formal training are preferred while recruitment because it can be
helpful in the insurance field. However, only the insurance degree in this field does
not guarantee success. To be successful an agent must have strong interpersonal,
networking, and communication skills.
Training at LIC:
Our agents go through both generic and specific, professional programs that
help them remain well-informed and knowledgeable about the companys products
in the market. There is a further focus on soft skills such as communication,
managing long-term relationships and selling skills, which are very relevant in a
service-driven industry like life insurance.
State of the art infrastructure training facilities coupled with an excellent
faculty, guarantee an exceptional learning environment. For agents who might be
occupied with their daily business/professional routines.
A 17-18 day training schedule covers the mandatory IRDA training
requirements and LIC product-training module. Revision session ensure that the
candidates thoroughly understand the course contents and are well prepared for the
licensing examination. Theoretical training is interspersed with practical
appointment settings with potential customers, giving agents a feel of how their
business will work from the very first day. All through, the Development Officer
and the management provide continuous support to the advisors in achieving
independence towards garnering business.
Designing training is far more than devising courses; it can include activities
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
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such as:
Learning from observation of trained workers.
Receiving coaching from seniors;
Discovery as the result of working party, project team membership or attendance
at meetings;
Job swaps within and without the organization;
Undertaking planned reading, or follow from the use of selfteaching texts and
video tapes;
Learning via involvement in research, report writing and visiting other works or
organizations.
So far as group training is concerned in addition to formal courses there are:
Lectures and talks by senior or specialist managers;
Discussion group (conference and meeting) activities;
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, to reveal
new needs and redefine priorities and most of all to ensure that the objectives of the
training are being met.
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There are seven steps to developing a human resource strategy and the active
involvement of senior line managers should be sought throughout the approach.
identifies the
number of people required training, specific area in which they need training, the
age group of employee, the level in
may be totally new to the organization. Here the general introduction training is
required. Some employees may have problems in specific areas; here the training
must be specific. This entire information is collected by HR department.
2. Selecting target group:
Based on information collected in step 1 the HR department divides
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or
department
specialized
trainers
from outside. The trainers are given details by HR department, like number of
people in group, their age, their level in organization, the result desired at the end of
training, the area of training, the number of days of training, the training budget,
facilities available etc.
4. Preparing training packages:
Based on the information provided by trainers, he prepares
entire
training schedule i.e. number of days, number of sessions each day, topics to be
handled each day, depth of which the subject should be covered, the methodology
for each session, the test to be given foe each session, handout/printed material to
be given in each session.
5. Presentation:
On the first day of training program the trainer introduces himself and
specifies the need and objective of the program and then actually stars the program.
The performance of each employee
feedback is provided.
6. Performance:
At the end of training program the participants reports back
to
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Role of HRM in insurance sector with reference to LIC & ICICI Prudential
Life Insurance
training
program
during their training. Their progress and performance is constantly tracked and
suitable incentives are given if the participant is able to use whatever he has learned
in training.
7. Follow up:
Based on the employees performance, after training, the HR
is able to identify what is exactly wrong with training
program
department
and
suitable
correction is made.
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explained to them. This will help them to understand their roles and to know what
exactly is expected from them. The standards should also be communicated to the
appraisers or the evaluators and if required, the standards can also be modified at
this stage itself according to the relevant feedback from the employees or the
evaluators.
3. Measuring the actual performance:
The most difficult part of the Performance appraisal process is measuring the
actual performance of the employees that is the work done by the employees during
the specified period of time. It is a continuous process which involves monitoring
the performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not
affect the outcome of the process and providing assistance rather than interfering in
an employees work.
4. Comparing the actual with the desired performance:
The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the
employees from the standards set. The result can show the actual performance
being more than the desired performance or, the actual performance being less than
the desired performance depicting a negative deviation in the organizational
performance. It includes recalling, evaluating and analysis of data related to the
employees performance.
5. Discussing results:
The result of the appraisal is communicated and discussed with the
employees on one-to-one basis. The focus of this discussion is on communication
and listening. The results, the problems and the possible solutions are discussed
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with the aim of problem solving and reaching consensus. The feedback should be
given with a positive attitude as this can have an effect on the employees future
performance. The purpose of the meeting should be to solve the problems faced and
motivate the employees to perform better.
6. Decision making:
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or
the related HR decisions like rewards, promotions, demotions, transfers etc.
Conclusion
The core function of HRD in the banking industry is to facilitate
performance improvement, measured not only in terms of financial indicators of
operational efficiency but also in terms of the quality of financial services
provided. Factors like skills, attitudes and knowledge of the human capital play a
crucial role in determining the competitiveness of the financial sector.
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resource management strategies with the business strategy. HRM strategies include
managing change, creating commitment, achieving flexibility and improving
teamwork. The other processes representing the overt aspects of HRM, viz.
recruitment, placement, performance management.
REFERENCE:
Bibliography:
Personnel & Human Resource Management A.H. Sharma [5th revised edition
2005] Himalaya publishing house
Strategic HR technologies [keys to managing people] Ashok chanda
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Search Engine:
www.google.com
www.yahoo.co.in
www.wikipedia.com
Websites:
http://www.articlesbase.com/college-and-university-articles/lic-recruitment2010-commences-for-ados-2104415.html
http://licrecruitment.662873.free-press-release.com/
http://expertscolumn.com/
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http://www.scribd.com/doc/26858387/Handbook-of-Human-ResourceManagement-Practice-0749446315
http://www.articlesbase.com/college-and-university-articles/class-noteshuman-resource-management-recruitment-selection-procedure-872443.html
http://www.icmrindia.org/courseware/Intro%20to%20Hrm/hrm-DS7.htm
http://www.soulcast.com/post/show/146991/Selection-Process-in-HumanResource-Management
http://www.successcds.net/Career/life-insurance-corporation-lic-recruitmentapprentice-development-officers.html
http://traininganddevelopment.naukrihub.com/training-scenario/bankinginsurance/
http://www.licindia.in/
http://www.iciciprulife.com/public/default.htm
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