human resource practices

“A Study Of Human Resource Practices In LIC Amravati”

CHAPTER 1

INTRODUCTION

1.1) Introduction:

Human resources functions are significantly different from HR practices.

Functions are comprised of transactional activities that can be handled in-house or

easily outsourced. Practices are part conceptual, part implementation of an HR

strategy, comprised of systems that follow the normal or customary way of doing

business. The term "best practices" refers to the HR systems that have the greatest

impact on the workforce and the organization.

The search for universal principles of human resource management has been a

long one marked by periodic rediscoveries. Indeed one of the paradoxes in this search

is that we keep finding answers but somehow do not stick to them. For example, the

principle that "if you want people to change, you will be more likely to succeed if you

involve them in the process of planning the change" is as old as management inquiry

itself, yet we find participatory management, Likert's System 4, employee

empowerment, and similar concepts emerging over and over again as if they are new

and brilliant insights. Similarly, the principle that "if you want good communication

in an organization it is necessary to build high levels of mutual trust," has been known

for a long time, yet we casually introduce management practices that undermine trust

and then wonder later why our organizations are not more effective. Most

management theories espouse that people are important, but few of them treat people

as more than a resouce to be managed like any other resource, and few of them treat

people as a capital investment. In fact the frenzy of downsizing that we are seeing all

over the world today suggests that people are viewed primarily as a cost to be

controlled and minimized. Part of the problem is that we have split off human

resource management from the general management problem, as if there were some

other kind of management other than human resource management. As long as

organizations are based upon the coordinated action of two or more people,

management is by definition human resource management. It is a reasonable to

postulate that those few organizations in the world who understand the above points,

who understand that all management involves people, and who practice the principles

of empowerment and trust building will consistently outperform those who do not,

Vidyabharti Mahavidyalay, Amravati


and that this result will occur in organizations all over the world regardless of culture.

However, this result will only show up empirically in studies that are carried out over

a long period of time. Unfortunately most organizational research is not longitudinal

so we try to infer the validity of these principles from sets of organizations that are

only studied at one point in time. And, as you know, those studies are often

embarrassed by the fact that the very organizations named as the high performers at

the time of the research turn out to be poor performers a few years later.

Importance HR Practices:

"Why," you may ask, "do I need a policies and practices strategy for my

business?"

The simple answer is...because you have people working for you.

With human nature being what it is, employees will test limits and act

"creatively" in workplace situations, so you need a strategy for developing,

communicating and enforcing a set of policies and practices that reflect your

standards of acceptable behavior.

But a successful policies and practices strategy does more than draw

boundaries; it also recognizes and addresses people's needs.

There are many different types of people, and not surprisingly, they react

differently to the need for policies and practices based on those differences. For

example, some people prefer there be a written policy for everything, while others

favor having no policies at all and would leave everything open to interpretation as

situations arise. Neither of these extremes contributes to a work environment that's

conducive to high productivity levels. The answer is found in between, with the right

number and types of policies and practices that are focused on a primary goal--

improving individual performance in the workplace.

When you get to the heart of the matter, performance improvement is really

about the process of setting expectations and meeting them. The focus in business is

not just about meeting specific goals, but also about how you achieve them. And the

"how" affects the liabilities you create in the process.



So how can you make sure your employees have clear expectations and are treated

fairly as they work to help build your company? The answer is found in the way you

address four key elements related to the development and deployment of your policies

and practices: roles, rules, consequences and tools.

Roles

People like to have a clear understanding of their role in a company as well as

the roles of others. Every successful team has well-defined positions for its members:

Everyone knows what he or she is to do, how to do it and how their performance can

impact those around them. In business, this means you need to have clear reporting

structures that spell out who's in charge and how tasks are to be accomplished in the

organization.

This approach applies not only to intradepartmental structures, but also to

company-wide or interdepartmental projects. In addition, role definition is a

foundational part of establishing clear performance expectations for each employee.

Rules

Managers and employees need to share a clear understanding of what is and

what is not acceptable behavior within the company. Unfortunately, in today's

workplace, an employer can be held liable for the bad behavior of an employee,

especially when that bad behavior affects other employees, clients or individuals.

Having a clear set of behavioral expectations is critical to establishing that you're not

contributing to that bad behavior as an employer.

Setting clear and specific behavioral standards in the form of rules establishes

a framework for spotting and addressing violations of those standards. If you rely on

loosely defined general standards that aren't properly documented, then violations

become subjective and open to interpretation. The result of such ambiguousness is

often litigation.

Consequences

It's important that you clearly state consequences for violations of your

behavioral standards so that employees know what to expect and have fair warning of



those expectations. In addition, clear consequences help to ensure that you aren't

limited in your options for dealing with improper behaviors.

To establish these standards and violation consequences, sit down and think

through the over-the-line behaviors that won't be permitted in your company. It's

essential that you know ahead of time what employee actions require an immediate

dismissal. Similarly, you want to know what performance issues may qualify for a

more progressive disciplinary approach, and then define the steps involved in that

approach.

By nature, people are complex beings who will confound you one minute and

astound you the next. And except for violations that warrant immediate firings, it's

usually a wise, compassionate and financially prudent course to help people

strengthen their character by overcoming their weaknesses. Also, this approach

provides you with a way to retain experienced employees and recover your

investment in their Practices.

I've found that managers are often disappointed in an employee's performance

even though the manager never clearly communicated his or her expectations to that

employee. If you don't take steps to set clear expectations, the consequences you

administer for failure to meet those expectations can seem unfair. This is extremely

important because an employee who feels they've been treated unfairly can create a

great deal of liability. In many cases, the key issue is not whether they were actually

treated unfairly but whether the employee feels or perceives that they were treated

unfairly.

And it doesn't stop with the affected employee. If you or your managers

haven't clearly communicated your expectations to one employee, chances are you

haven't done so with other employees as well and they can be quick to empathize with

any affected workers. It's natural for employees to wonder, "What if that happened to

me?" To avoid the negative effect such a chain-reaction can have on your workplace,

be clear about your expectations with all employees at all times. Most employees will

appreciate and respect your forthright clarity.



Building a great company has a lot to do with how people work together.

Policies and practices can improve the way your employees interact, while

minimizing the personnel obstacles that often arise in today's workplaces.

Tools

Tools address the question of how you support the people in your company

who manage other employees. When faced with a specific personnel issue, what

resources are available to them? Do they have an employee handbook or a policy

guide? What about regular Practices in company policies and practices, coupled with

simple, easy-to-use forms to guide them when dealing with particular issues? Are you

giving them a clear directive on working with your human resources personnel or

legal representatives? Are your resources available online?

Tools like these are vital not just to help avoid litigation, but also to minimize

the time it takes for you to deal with productivity-draining people issues instead of

core business matters. Because many small-business owners lack these resources and

aren't sure where to turn for help, they may use attorneys and HR consultants on an a

la carte basis to address such issues. Other businesses call on professional employer

organizations like Administaff to provide the support of a full-service human

resources department.

Whatever your approach, the key to success is to devote the time and

resources it takes to develop a policies and practices strategy for your business before

the need arises. It's an investment that can pay large dividends in increased

productivity and minimized litigation. And it's an essential component of your

comprehensive people strategy.

Paul Sarvadi is the "Human Resources" coach at Entrepreneur.com and is

chairman of the board, CEO and co-founder of Administaff, one of the nation's

leading Professional Employer Organizations (PEO), which serves as an outsourced

full-service human resources department for small and medium-sized businesses

throughout the United States.



1.2) Human Resource:

Human resources is the set of individuals who make up the workforce of

an organization, business sector, or economy. "Human capital" is sometimes used

synonymously with human resources, although human capital typically refers to a

more narrow view (i.e., the knowledge the individuals embody and can contribute to

an organization). Likewise, other terms sometimes used include "manpower", "talent",

"labour", or simply "people".

The professional discipline and business function that oversees an

organization's human resources is called human resource management (HRM, or

simply HR).

The term in practice

From the corporate objective, employees have been traditionally viewed as

assets to the enterprise, whose value is enhanced by further learning and development,

referred to as human resource development. Organizations will engage in a broad

range of human resource management practices to capitalize on those assets.

In governing human resources, three major trends are typically considered:

1. Demographics: the characteristics of a population/workforce, for example,

age, gender or social class. This type of trend may have an effect in relation to

pension offerings, insurance packages etc.

2. Diversity: the variation within the population/workplace. Changes in society

now mean that a larger proportion of organizations are made up of "baby-

boomers" or older employees in comparison to thirty years ago. Advocates of

"workplace diversity" advocate an employee base that is a mirror reflection of

the make-up of society insofar as race, gender, sexual orientation etc.

3. Skills and qualifications: as industries move from manual to more managerial

professions so does the need for more highly skilled graduates. If the market is

"tight" (i.e. not enough staff for the jobs), employers must compete for

employees by offering financial rewards, community investment, etc.



In regard to how individuals respond to the changes in a labour market, the following

must be understood:

Geographical spread: how far is the job from the individual? The distance to

travel to work should be in line with remuneration, and the transportation and

infrastructure of the area also influence who applies for a position.

Occupational structure: the norms and values of the different careers within an

organization. Mahoney 1989 developed 3 different types of occupational

structure, namely, craft (loyalty to the profession), organization career path

(promotion through the firm) and unstructured (lower/unskilled workers who

work when needed).

Generational difference: different age categories of employees have certain

characteristics, for example, their behavior and their expectations of the

organization.

Concerns about the terminology

One major concern about considering people as assets or resources is that they

will be commoditized and abused. Some analysis suggests that human beings are not

"commodities" or "resources", but are creative and social beings in a productive

enterprise. The 2000 revision of ISO 9001, in contrast, requires identifying the

processes, their sequence and interaction, and to define and communicate

responsibilities and authorities. In general, heavily unionized nations such

as France and Germany have adopted and encouraged such approaches. Also, in 2001,

the International Labor Organization decided to revisit and revise its 1975

Recommendation 150 on Human Resources Development, resulting in its "Labor is

not a commodity" principle. One view of these trends is that a strong social consensus

on political economy and a good social welfare system facilitate labor mobility and

tend to make the entire economy more productive, as labor can develop skills and

experience in various ways, and move from one enterprise to another with little

controversy or difficulty in adapting.

Another important controversy regards labor mobility and the broader

philosophical issue with usage of the phrase "human resources". Governments of

developing nations often regard developed nations that encourage immigration or



"guest workers" as appropriating human capital that is more rightfully part of the

developing nation and required to further its economic growth. Over time, the United

Nations have come to more generally support the developing nations' point of view,

and have requested significant offsetting "foreign aid" contributions so that a

developing nation losing human capital does not lose the capacity to continue to train

new people in trades, professions, and the arts.

Practices

Business function

Dave Ulrich lists the functions of HR as: aligning HR and business strategy,

re-engineering organization processes, listening and responding to employees, and

managing transformation and change.

At the macro-level, HR is in charge of overseeing organizational leadership

and culture. HR also ensures compliance with employment and labor laws, which

differ by geography, and often oversees health, safety, and security. In circumstances

where employees desire and are legally authorized to hold a collective bargaining

agreement, HR will typically also serve as the company's primary liaison with the

employee's representatives (usually a labor union). Consequently, HR, usually

through representatives, engages in lobbying efforts with governmental agencies (e.g.,

in the United States, the United States Department of Labor and the National Labor

Relations Board) to further its priorities.

To look at Human Resource Management more specifically, it has four basic

functions: staffing, Practices and development, motivation and maintenance. Staffing

is the recruitment and selection of potential employees, done through interviewing,

applications, networking, etc. Practices and development is the next step in a

continuous process of Practices and developing competent and adapted employees.

Motivation is key to keeping employees highly productive. This function can include

employee benefits, performance appraisals and rewards. The last function of

maintenance involves keeping the employees' commitment and loyalty to the

organization.



The discipline may also engage in mobility management, especially pertaining

to expatriates; and it is frequently involved in the merger and acquisition process. HR

is generally viewed as a support function to the business, helping to minimize costs

and reduce risk.

Careers

There are half a million HR practitioners in the United States and thousands

more worldwide. The Chief HR Officer or HR Director is the highest ranking HR

executive in most companies and typically reports directly to the Chief Executive

Officer and works with the Board of Directors on CEO succession.

Within companies, HR positions generally fall into one of two categories:

generalist and specialist. Generalists support employees directly with their questions,

grievances, and work on a range of projects within the organization. They "may

handle all aspects of human resources work, and thus require an extensive range of

knowledge. The responsibilities of human resources generalists can vary widely,

depending on their employer's needs." Specialists, conversely, work in a specific HR

function. Some practitioners will spend an entire career as either a generalist or a

specialist while others will obtain experiences from each and choose a path later.

Being an HR manager consistently ranks as one of the best jobs, with a #4 ranking

by CNN Money in 2006 and a #20 ranking by the same organization in 2009, due to

its pay, personal satisfaction, job security, future growth, and benefit to society.

Human resource consulting is a related career path where individuals may

work as advisers to companies and complete tasks outsourced from companies. In

2007, there were 950 HR consultancies globally, constituting a USD $18.4 billion

market. The top five revenue generating firms were Mercer, Ernst & Young, Deloitte,

Watson Wyatt (now part of Towers Watson), Aon (now merged with Hewitt),

and PwC consulting. For 2010, HR consulting was ranked the #43 best job in America

by CNN Money.

Some individuals with PhDs in HR and related fields, such as industrial and

organizational psychology and management, are professors who teach HR principles

at colleges and universities. They are most often found in Colleges of Business in

departments of HR or Management. Many professors conduct research on topics that



fall within the HR domain, such as financial compensation, recruitment,

and Practices.

1.3) Literature Review:

Human Resource Development (HRD) is the framework for helping

employees develop their personal and organizational skills, knowledge, and abilities.

Human Resource Development includes such opportunities as employee Practices,

employee career development, performance management and development, coaching,

mentoring, succession planning, key employee identification, tuition assistance, and

organization development.

The focus of all aspects of Human Resource Development is on developing

the most superior workforce so that the organization and individual employees can

accomplish their work goals in service to customers.

Organizations have many opportunities for human resources or employee

development, both within and outside of the workplace.

Human Resource Development can be formal such as in classroom Practices, a

college course, or an organizational planned change effort. Or, Human Resource

Development can be informal as in employee coaching by a manager. Healthy

organizations believe in Human Resource Development and cover all of these bases.

1.4) Scope of the study:

Human resources are undoubtedly the key resources in an organization, the

easiest and the most difficult to manage! The objectives of the HRM span right from

the manpower needs assessment to management and retention of the same. To this

effect Human resource management is responsible for effective designing and

implementation of various policies, procedures and programs. It is all about

developing and managing knowledge, skills, creativity, aptitude and talent and using

them optimally.

Human Resource Management is not just limited to manage and optimally

exploit human intellect. It also focuses on managing physical and emotional capital of

employees. Considering the intricacies involved, the scope of HRM is widening with



every passing day. It covers but is not limited to HR planning, hiring (recruitment and

selection), Practices and development, payroll management, rewards and recognitions,

Industrial relations, grievance handling, legal procedures etc. In other words, we can

say that it’s about developing and managing harmonious relationships at workplace

and striking a balance between organizational goals and individual goals.



CHAPTER 2

COMPANY PROFILE

2.1) Introduction:

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance

group and investment company headquartered in Mumbai. It is the largest insurance

company in India with an estimated asset value of 1560482 crore

(US$240 billion). As of 2013 it had total life fund of Rs.1433103.14 crore with total

value of policies sold of 367.82 lakh that year.

The company was founded in 1956 when the Parliament of India passed the

Life Insurance of India Act that nationalized the private insurance industry in India.

Over 245 insurance companies and provident societies were merged to create the state

owned Life Insurance Corporation.

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the

prominence of insurance is not as widely understood, as it ought to be. What follows

is an attempt to acquaint readers with some of the concepts of life insurance, with

special reference to LIC.

It should, however, be clearly understood that the following content is by no

means an exhaustive description of the terms and conditions of an LIC policy or its

benefits or privileges.

For more details, please contact our branch or divisional office. Any LIC

Agent will be glad to help you choose the life insurance plan to meet your needs and

render policy servicing.


http://en.wikipedia.org/wiki/File:LIC_Logo.svg

http://en.wikipedia.org/wiki/Indian_rupee


What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person

assured (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium

periodically to the Corporation by the policyholder. Life insurance is universally

acknowledged to be an institution, which eliminates 'risk', substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate event of death

of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems

caused by death. Life insurance, in short, is concerned with two hazards that stand

across the life-path of every person:

That of dying prematurely leaving a dependent family to fend for it.

That of living till old age without visible means of support.

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) History:

Brief History of Insurance



The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against loss and

disaster existed in primitive men also. They too sought to avert the evil consequences

of fire and flood and loss of life 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.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian

soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company

started its business.



1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalised. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in

the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd. GIC incorporated as a company.



2.3) Company Profile:

Life Insurance Corporation of India

Type Public Sector

Industry Financial services

Founded 1 September 1956

Headquarters Mumbai, India

Key people S.K Roy (Chairman),

Sushobhan Sarker (Managing Director),

S.B Mainak (Managing Director)

N.R Guha (Managing Director),

V.K Sharma (Managing Director),

Usha Sangwan (Managing Director)

Products Life insurance,

health insurance,

investment management,

mutual fund

Revenue US$46,794 million(2012)

Profit US$3,257 million (2012)

Total assets 1560482 crore(US$240 billion) (2013)

Owner Government of India

Number of

employees

119,767 (Mar 2012)

Subsidiaries LIC Housing Finance

LIC Pension Fund Ltd.

LIC International

LIC Cards Services

LIC Nomura Mutual Fund

Website www.licindia.in

2.4) Products:


http://www.licindia.in/

http://en.wikipedia.org/wiki/LIC_Housing_Finance

http://en.wikipedia.org/wiki/Subsidiary

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Crore

http://en.wikipedia.org/wiki/Asset

http://en.wikipedia.org/wiki/Net_income

http://en.wikipedia.org/wiki/1000000_(number)

http://en.wikipedia.org/wiki/Mutual_fund

http://en.wikipedia.org/wiki/Investment_management

http://en.wikipedia.org/wiki/Health_insurance

http://en.wikipedia.org/wiki/Life_insurance

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Financial_services

http://en.wikipedia.org/wiki/Types_of_business_entity

http://en.wikipedia.org/wiki/Indian_rupee


Insurance Plan

Group Plan

Pension Plan

Unit Plan

Special Plans

CHAPTER 3



RESEARCH METHODOLOGY

3.1) RESEARCH DESIGN:

To collect data needed to address the above mentioned objectives the

exploratory research design was used.

Exploratory research was design to describe something. It includes surveys and

facts finding enquiries of different kind. The research study is based on collection of

data and analysis to draw the conclusion.

3.2) METHODOLOGY:

The completion of research involved three phases:

First phase: Collection of Secondary and Primary data. Secondary data were

collected from books, magazines and websites, etc. And Primary data was

collected from the structured questionnaire and interview schedule.

Second phase: Pilot study, Actual primary data collection, Editing and

tabulation of data.

Third phase: Data analysis using statistical tools. Inferences, conclusions, suggestions

based on data collected.

3.3) PROBLEM DEFINITION:

The problem to manage employees efficiently and effectively depends

on the behavioral part of the individual which comprised of satisfaction,

dissatisfaction, perceptions and attitude, etc. The concept of satisfaction is not only

associated to Monetary and Motivational Mechanism, however, it is also

interconnected with HR functions like Recruitment, Selection, Induction, Practices

and Performance

Appraisal and so on. The present study will be carried out with respect to the

impact of the satisfaction levels of employees varies with the systematic or

unsystematic implementation of HRM practices.

3.4) DATA COLLECTION:



Data means information required in the research. There are two types of data

sources, which have been helpful to carry out the research these, are as follows:

Primary data

Primary data are those, which are collected a fresh and for the first time. Primary

data was collected through questionnaires & Interview schedule.

Researcher was collected data from questionnaire.

Secondary data

Secondary data are those, which have already been collected by publication of

Governments, Periodicals of organization, newspaper, books, & internet etc.

In this research process, researcher collected secondary data form newspaper,

books, company website, magazines, etc.

Sampling Universe

The first step in devolving any sample design is to clearly define the set of

objects, technically called the universe.

Sample universe for research was Life Insurance Corporation India, Ltd. Amravati.

Sample Technique

Sampling technique used for selection of sample non-probability,

‘Convenience sampling technique’.

A convenience sample is that where the sample is selected, in part or only a

limited attempt, to ensure that this sample is an accurate representation of some larger

group of population. The classic example of convenience sample is standing at

shopping mall and selecting shoppers as they walk by to fill out a survey. A

convenience sample chooses the individuals that are easiest to reach or sampling that

is done easy. Hence, convenience sampling was used for the research.

Sample Size



This refers to the number of item to be selected from the universe to constitute a

sample. The sample size was 50 employees for research.

3.5) OBJECTIVE’S OF STUDY:

To examine the trends of HR practices in LIC, Amravati.

To find out the satisfaction levels of employees as a consequence of the HR

Practices in LIC, Amravati

To establish Relationship between HRM practices and satisfaction levels among

Employees.

To study the practices in order to increase the efficiency and effectiveness of its

Human Resources

To assess practices regarding human resource planning and recruitment in LIC.

To identify selection and socialization practices in LIC.

To assess the practices regarding Practices in LIC.

To assess practices of performance appraisal in LIC.

To assess the compensation and benefits related practices in LIC.

3.6) LIMITATION:

The present study is limited to many aspects. It is not possible to take into

consideration each and every criterion in this study.

1) Sample size was 50 respondents due to time and money constraints

2) The study was limited to Life Insurance Corporation India, Ltd. Amravati

CHAPTER NO 4



DATA ANALYSIS & INTERPRETATION

The data so collected is scrutinized, tabulated and analyzed by the help

of some statistical tools and techniques and finally used for the study purpose.

Following are the major conclusions are drawn by the researchers.

Table No. 4.1 AGEWISE CLASSIFICATION OF RESPONDENTS

Sr. No Age(in years) Number of

respondents

Percentage

1 18-25 10 20

2 26-35 15 30

3 36-45 10 20

4 46-55 10 20

5 Above 55 05 10

TOTAL 50 100

Sources: Primary Data

Graph no. 4.1 AGEWISE CLASSIFICATIONS OF RESPONDENTS

20%

30%20%

20%10%

Number of respondents

18-2526-3536-4546-55Above 55

Interpretation

From above data it can be concluded that, 30% of the respondent from the age

group of 26-35, 20% of the respondent from the age group of 18-25, 36-45 & 46-55.

10% respondents are from above 55 groups.

Table No. 4.2 GENDER WISE CLASSIFICATION OF RESPONDENTS



Sr. No Gender Number of

respondents

Percentage

1 Male 35 70

2 Female 15 30

TOTAL 50 100


Graph no. 4.2 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

70%

30%

Number of respondentsMale Female

Interpretation

From above data it can be concluded that, 70% of the respondents are male

and 30% are females.

Table No. 4.3 WORKING PERIOD OF RESPONDENTS



Sr. No Working Period Number of

respondents

Percentage

1 Below 2 Years 15 30

2 2-5 Years 15 30

3 5-10 Years 10 20

4 Above 10 Years 05 10

TOTAL 50 100


Graph no. 4.3 WORKING PERIOD OF RESPONDENTS

Below 2 Years

2-5 Years 5-10 Years Above 10 Years

0

2

4

6

8

10

12

14

16



No.

of r

espo

nden

ts

Interpretation

From above data it can be concluded that, 30% of the respondent working from since

2 and 2-5 years.20% and 10% respondents working since last 5-10 years, Above 10

years respectively.

Table No. 4.4 PRACTICES PROGRAM ATTAINDED BY RESPONDENTS



Sr. No Number of Program attn. Percentage

1 1 20

2 2-3 30

3 4-6 30

4 More than 6 20

Total 100


Graph no. 4.4 PRACTICES PROGRAM ATTAINDED BY RESPONDENTS

1 2-3 4-6 More than 60

5

10

15

20

25

30

20

30 30

20

Percentage

Percentage

No.

of r

espo

nden

ts

Interpretation

From above data it can be concluded that, 30% of the respondent attended 2-3 & 4-6

Programs respectively. 20% of the respondents attended only 1 & more than 6

Practices programs in a year.

Table No. 4.5 HR PRACTICES NEED IDENTIFIED BY ORGANIZATION



Sr. No Identified by Number of

respondents

Percentage

1 By Systematic Analysis 5 10

2 Based on Performance

Appraisal

15 30

3 Individual Assessment 15 30

4 Based on Feedback of

Superior

15 30

Total 50 100


Graph no. 4.5 HR PRACTICES NEED IDENTIFIED BY ORGANIZATION

By Syst

emati

c Analy

sis

Based on Perf

orman

ce Apprai

sal

Individual A

ssessm

ent

Based on Fe

edback

of Superi

or02468

10121416

5

15 15 15


No.

of R

espo

nden

ts

Interpretation

From above data it can be concluded that, 30% of the respondent says that

there organization identified the Practices need by feedback, performance base and

individual assessment. 10% of the respondents say by systematic analysis.

Table No. 4.6 PRACTICES IS BENIFITED OR NOT



Sr. No Benifited Respondent Percentage

1 Yes 35 70

2 No 15 30

total 50 100


Graph no. 4.6 PRACTICES IS BENIFITED OR NOT

70%

30%

RespondentYes No

Interpretation

From above data it can be concluded that, 70% of the respondents are says that

the Practices program is benefited to them and 30% are says not benefited.

Table No. 4.7 DURATION OF PRACTICES PERIOD IN ORGANIZATION



Sr. No Duration Respondent Percentage

1 Adequate 18 18

2 Long 52 52

3 Short 30 30

total 100 100


Graph no. 4.7 DURATION OF PRACTICES PERIOD IN ORGANIZATION

18%

52%

30%

RespondentAdequate Long Short

Interpretation


the Practices program was long durable, 30% are says durability of the Practices

program was short and 18% said adequate.

Table No. 4.8 SATISFACTION BY THE SCHEDULE OF HR PRACTICES

PROGRAMM



Sr. No Opinion Respondent Percentage

1 Yes 24 24

2 No 52 52

3 Can’t say 24 24

total 100 100


Graph no. 4.8 SATISFACTION BY THE SCHEDULE OF PRACTICES

PROGRAMM

24%

52%

24%

RespondentYes No Can’t say

Interpretation


the Practices program is not benefited to them and 24% are says benefited and can’t

say.

Table No. 4.9 INFRASTRUCTURE FACILITIES IN HR PRACTICES

PROGRAM



Sr. No Facilities Respondent Percentage

1 Excellent 10 20

2 Satisfactory 10 20

3 Good 15 30

4 Un-satisfied 15 30


Graph no. 4.9 INFRASTRUCTURE FACILITIES IN HR PRACTICES

PROGRAM

Excellent

Satisfactory

Good

Un-satisfied

0 2 4 6 8 10 12 14 16

Respondent

Respondent

No. of Respondents

Interpretation


there organization provide good facilities in the place of HR practices program and

30%, 20%, 20%, respondents are says un-satisfactory, satisfactory and excellent

respectively.

Table No. 4.10 TYPE OF HR PRACTICES METHOD FOLLOWES

Sr. No Method Number of Percentage



respondents

1 On the job Practices 25 50

2 Off the job Practices 15 30

3 Both 10 20

Total 50 100


Graph no. 4.10 TYPE OF HR PRACTICES METHOD FOLLOWES

On the job Training Off the job training Both0

5

10

15

20

25


No.

of R

espo

nden

ts

Interpretation


there organization provides on the job Practices, 30% says they provide off the job

Practices and 20% says both methods are use there.

Table No. 4.11 TYPE OF PRACTICES METHOD USE IN CASE OF ON THE

JOB PRACTICES



Sr. No Method Number of

respondents

Percentage

1 Job Instruction 22 22

2 Coaching 21 21

3 Seminar 19 19

4 Job Rotation 24 24

5 Committee assignment 16 16


Graph no. 4.10 TYPE OF PRACTICES METHOD USE IN CASE OF ON THE

JOB PRACTICES

Job In-struction

Coaching Seminar Job Rotation Committee assignment

0

5

10

15

20

25

22 2119

24

16

No.

of R

espo

nden

ts

Interpretation

From above data it can be concluded that, in case on the job Practices, most of

the employee prefer job rotation method, i.e. 24%, 22, 21, 19, 16% respondents likes

job instruction, coaching, seminar and committee assignment.

Table No. 4.12 TYPE OF PRACTICES METHOD USE IN CASE OFF THE

JOB PRACTICES

Sr. No Method Number of Percentage



respondents

1 Role plays 22 22

2 Conference 34 34

3 Programmed instruction 22 22

4 Lecture 24 24

Total 100 100


Graph no. 4.12 TYPE OF PRACTICES METHOD USE IN CASE OFF THE

JOB PRACTICES

Role plays Conference Programmed instruction

Lecture0

5

10

15

20

25

30

35

22

34

22 24

No.

of R

espo

nden

ts

Interpretation

From above data it can be concluded that, in case off the job Practices, most of

the employee prefer conference, i.e. 34%, 22, 22, 24% respondents likes programmed

instruction, role plays and lecture.

Table No. 4.13 SUPPORTS BY SUPERIOR

Sr. No. Support No. of

respondent

Percentage



1 Full 25 50

2 Partial 15 30

3 Not at all 10 20

Total 50 100


Graph no. 4.13 SUPPORTS BY SUPERIOR

Full

Partial

Not at all

0 5 10 15 20 25

No. of respondent

No. of respondent

No. of Respondents

Interpretation


their superiors provides full supports to complete the Practices, 30% says they provide

partial supports and 20% says not at all.

Table No. 4.14 RESPONDENT RATED PRACTICES PROGRAMS

CONDUCTED BY ORGANIZATION

Sr. No. Rating No. of

respondent

Percentage



1 Convenient 10 20

2 Disturbing 20 40

3 Average 05 10

4 Can’t Say 15 30


Graph no. 4.14 RESPONDENT RATED PRACTICES PROGRAMS

CONDUCTED BY ORGANIZATION

Convenient Disturbing Average Can’t Say02468

101214161820

No. of respondent

No. of respondent

No.

of R

espo

nden

ts

Interpretation

From above data it can be concluded that, 40% of the respondent says that the

Practices program was disturbing, 20% can’t say about Practices program, convenient

and average says 30%, 10% respectively.

Table No. 4.15 AREA FOR EMPLOYEE NEEDS PRACTICES

Sr.

No.

Area No. of

respondent

Percentage

1 Company policies & procedures 05 10

2 Skill base Practices 15 30



3 Problem solving skill 15 30

4 Human relation Practices 15 30


Graph no. 4.15 AREAS FOR EMPLOYEE NEEDS PRACTICES

Company policies &

procedures10%

Skill base train-ing

30%

Problem solv-ing skill

30%

Human relation training

30%

No. of respondent

Interpretation

From above data it can be concluded that, 30% each of the respondent says

that the Practices program will be for the Human Relation Practices, Skills, Problem

solving, and only 10% respondents says for Policies and procedures.

Table No. 4.16 PRACTICES PURPOSE GIVEN TO EMPLOYEE

Sr.

No.

Purpose No. of

respondent

Percentage

1 To increase the product knowledge 10 10

2 For handling machine 12 12



3 Motivating and encouraging 06 06

4 To learn how to convenience people 04 04

5 To be well trained in product information 18 18


Graph no. 4.16 PRACTICES PURPOSE GIVEN TO EMPLOYEE

20%

24%

12%

8%

36%

To increase the product knowledge

For handling machine

Motivating and encouraging

To learn how to convenience people

To be well trained in product information

Interpretation

From above data it can be concluded that, 36 % respondents said Practices

purpose to be well trained in product information and documents, 20, 24, 12, 8%

respondents said to increase the product knowledge, for handling machine, motivating

& encouraging, and to learn how to convenience people.

Table No. 4.17 IMPROVEMENT IN EMPLOYEES AFTER PRACTICES

Sr. No. Improvement No. of

respondent

Percentage

1 Yes 30 60

2 No 20 40




Graph no. 4.17 IMPROVEMENT IN EMPLOYEES AFTER PRACTICES

YesNo

0

5

10

15

20

25

30

No. of respondent

No.

of R

espo

nden

ts

Interpretation

From the above data it can be conclude that, 60% respondents are says

improvement after Practices and 40% says there is no improvement after the Practices

program.

Table No. 4.18 PRACTICES REDUCES ABSENTEEISM IN EMPLOYEES

Sr. No. Reduction No. of

respondent

Percentage

1 Yes 30 60



2 No 20 40


Graph no. 4.18 PRACTICES REDUCES ABSENTEEISM IN EMPLOYEES

YesNo

0

5

10

15

20

25

30

No. of respondent

No.

of R

espo

nden

ts

Interpretation

From the above data it can be conclude that, 60% respondents are says

reduction in absentee after Practices and 40% says there is no reduction in

absenteeism after the Practices program.

CHAPTER NO 5

FINDINGS, SUGGETIONS & RECOMMONDATIONS

5.1) FINDINGS:



Most of the employees in Life Insurance Company Ltd. have attended more than 6

programs in a year.

1. In this research, mostly respondents from the age group of 26-35 years, i.e.

30%.

2. Mostly males were involved in this process.

3. 30% respondents working since last 2 years.

4. Mostly the Practices needs of employees are identified by performance

appraisal.

5. 70% respondents tell that, Practices was benefited to them.

6. 52% respondents said that, Practices period in the organization was lon period.

7. Most of the employees in the organization are not satisfied with the duration

and schedule of Practices program.

8. 30% of the respondents were said well to the infrastructure facility.

9. Normally company adopted on the job Practices method but sometimes it

adopted off the job Practices method.

10. In case of on the job Practices, job rotation, job instruction, coaching,

committee assignment and seminar were arranged by the organization. 24%

respondents like job rotation method.

11. In case of off the job Practices, role play, conference, programmed instruction

and lecture were arranged by the organization. 34% respondents like

conference method.

12. Fully support was provided by the superior to the juniors.

13. 40% respondents said that Practices program was disturbing to them in

working.



14. Practices programs was mostly arranged to provide the knowledge about

problem solving. This involved 30% respondents.

15. Practices helps to improve the performance of the employees hence they can

avoid mistakes on the job and can handle job with confidence. But mostly

respondents said Practices purpose was to be well trained in product

information and document.

16. The competitive level of the employees increases after the Practices program.

17. Practices help to reduce the absenteeism of the employees.

5.2) SUGGESTIONS & RECOMMONDATIONS:

1. In today’s competitive world, attitude is the factor which is dividing line

between failure and success. Thus recruitment of the employees must be made



not only on the basis on skills and knowledge but also attitude of the

employees. If the employees have positive attitude, Practices can be more

effective.

2. The Practices records must be properly preserved maintain and updated

timely.

3. Proper care must be taken while selecting the trainer.

4. Practices should be performed as a continuous planned activity.

5. New and different trainer should be invited so that maximum impact can be

derived from the Practices program.

6. The company must take care of creating the awareness about the product and

service among the advisor/consultant.

7. Practices program should be made more innovative and interesting to attract

the employees.

8. Employee should not restrict themselves to work within limited area.


human resource practices

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