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B yG r o u p I I
S e c t i o n B
2 0 1 1 - 1 3
Organizational Culture
The Life Insurance Sector of India
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Contents
Introduction to Life Insurance Industry of India ............................... ........................... ........................... .. 5
History & Transformation ........................ ........................... ........................... ........................... ........... 5
Risk, Perception and Evaluation ....................... ............................ ........................... ........................... .. 5
Marketing ............................................................................................................................................ 6
Selling of the Products ........................ ........................... ........................... ........................... ................ 6
About the Companies .............................................................................................................................. 7
Objective Factors of Organizational Culture....................... ........................... ........................... ................ 8
Aggressiveness .................................................................................................................................... 8
Attention to Detail ............................................................................................................................... 8
Outcome Orientation ........................... ........................... ........................... ........................... ................ 9
People Orientation .......................... ........................... ........................... ........................... .................... 9
The Socialization Process ....................... ........................... ........................... ........................... .............. 10
Pre-arrival Stage: ....................... ............................ .......................... ........................... ....................... 10
MetLife India¶s Training &Induction Programs: .............................. ........................... ........................... 12
MetLifeManagement Induction School ................. ........................... ........................... ....................... 12
CST: Compliance and Sales Training ......................... ........................... ........................... .................. 12
Employee Growth & Motivation ............................ .......................... ........................... ....................... 13
The R&R includes Monetary and Non Monetary benefits such as:........................... ........................... 13
Max New York Life¶s Training and Induction Program: .................. ........................... ........................... 14
New Employee Orientation [NEO] Program........................ ........................... ........................... ......... 14
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Introduction to Life Insurance Industry of India
The requirements of an Industry shape the work culture of the organization present in the
industry.The Indian life insurance industry is a highly competitive and hostile one in nature. This
leads to a dynamic environment around any organization in the sector. Currently almost allcompanies have all plans and / or products at hand, thanks to the rigid guidelines by theIRDA.Thus the onus for performance lies on the individual marketing and selling inputs of the
various products and services on offer. All of whichends up making it a highly target orientedsector.
History & Transf ormation
The Life Insurance Corporation of India (LIC) was established way backin 1956 and has beenthe sole corporation to be present in the life insurance business in India.
The Indian insurance industry saw a new sunrisein August 2000, when theIRDA allowed the private sector to invest in the sector.
Thanks to liberalization, the industry has been presented with avery promising future.
Thischange in regulation has resulted increation of new opportunities for certified financial planners and various other professionals.
The Indian Insurance industry has the following characteristics:
y Low market penetration;
y Rapidly growing middle class.
y Growth of consumerism; (highly professionalized service)
y Inadequate and / or poor IT application.
The companies need to keep a keen eye on these characteristics of the Indian market and
formulate strategies so as to entail maximum overall profitability.
R isk, Perception and Evaluation
The fundamental function of an insurer is to provide cover against the unforeseen, to theinsured.These unforeseen events are specific happenings,which have been previously discussed
and agreed upon. Thus, prior to providing such a cover through an insurance policy, the insurer has to assess carefully assess the risk element prevalent in the concerned industry and / or a
particular unit. After the identification and categorization of the perceived risks, the probabilityof the mishap, severity of the loss bothneed to be assessed.
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Marketing
The core function of the marketing teamin an insurance company is to generate awareness andsufficient interest,to ensure a saleof the companies¶ insurance related products and / or services
in the given target market. In the Indian scenario however, where the insurance penetration in
general is way too low as compared to the developed nations. The marketing team needs to perform a verypro-active role in developing aculture, which actually insists on buying insurance.It is through the long-term efficiency of the sales team of an insurance company that the
desirability and the success of the company as a whole is sustained.
In Indian insurance market, this function is, performed primarily by the agents or advisors.Individuals interested to work as an insurance agent have to obtain a license from the IRDA to
act as one. The agents approach prospective buyers and apprise them about the various productsand / or services on offer. In order to carry out their duties effectively, the agents need to possess
knowledge about the insurance industry, products, services and the modalities attached.Further, the marketing personnel should be provided adequate backing by her or his respective
reporting branch.
Selling of the Products
The term ³selling´ in the context of the insurance industry connotes the issuance of a policy to
the applicant known as the proposer.
In the Indian life insurance industry, thisis done by the by the insurer. In addition, the insurancecompanies have a dedicated operations department to look after the post sales support for the
sales team so as to ensure timely issuance of the insurance contract.
They receive the proposal documents, verify them, under-write1them for financial, medical and /
or lifestyle inconsistencies and then after fully satisfying the given norms and issuance criteria
give the go ahead for the contract by way of a placement conformation mail.
1Sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs.
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About the Companies
COMPANY MISSION VISION
MetLifeIndia
Build financial freedom for all, through leadership in
providing financial advice and building long-term
relationships through innovative protection,accumulation&retirement products, robust underwriting processes and
creating a world-class customer service experience for our customers
We want to provide
customers in India with
world-class solutions for financial security, and in the
process add significant value
to our shareholders, associatesand society.
Max NewYork Life
Insurance
y Amongst the top 5 private life insurance
companies
y National Player
y Brand of choice
y Employer of Choice
y Principal of Choice for Distribution & Suppliers
To become the most admired
Life Insurance Company inIndia for all stakeholders
ICICI Group
We will leverage our people, technology, speed and
financial capital to:
y Be the banker of first choice for our customers
by delivering high quality, world-class productsand services.
y Expand the frontiers of our business globally.
y Play a proactive role in the full realization of India¶s potential.
y Maintain a healthy financial profile and
diversify our earnings across businesses and
geographies.y Maintain high standards of governance and
ethics.y Contribute positively to the various countries
and markets in which we operate.
y Create value for our stakeholders.
To be the leading provider of
financial services in India anda major global bank.
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Objective Factors of Organizational Culture
There are many objective factors, which form the various elements of perception of
organizational culture. Such as Innovation and Risk Taking, People Orientation, Attention to
Detail, Outcome Orientation, Aggressiveness, etc.
We have tried to analyze the life insurance companies on the basis of some of the above-
mentioned objective factors.
Aggressiveness
In MetLife, the degree of aggressiveness is at a lower level. The employees are encouraged, their
efforts supported. As an organization, employees in general tend to be calm and relaxed due to
the qualitative focus of the top management. Quality is given greater weightage over quantity,which allows employees to focus on fulfilling the needs of each individual client to the best of their abilities.
For Max New York Life India, the degree of aggressiveness is at a comparatively moderatelevel. The employees are encouraged, but performance is important. The organization follows a
more balanced approach; quality and quantity both are given an almost equal weightage. Incertain tricky situations, however if one needs to choose between quality and quantity, then
quality is certainly given preference.
At ICICI Prudential Life Insurance, the degree of aggressiveness is very high. The employees are
pushed to perform. Quantity is given the maximum amount of focus under almost allcircumstances. Collections at the end of the month in terms of NOP¶s
2and the collected
premium3
both matter.
Attention to Detail
At MetLife India, attention to detailis given a lot of importance. This can be gauged from one of
the company¶s branding and advertising related activities. An employee told us, that an entire
batch of billboards was rejected, because a wrong shade of blue was being used in the
background.
For Max New York Life, attention to detail is also at the upper end of the spectrum. Minutedetails are taken care of. Being on time, attending all stipulated training sessions, using the given
support tools and packages as prescribed are all given a lot of importance. For employees as an
organization, the tendency is to take as much care of as many things as possible.
2 NOP, Number of policy3 Collected Premium, It·s the actual collected premium. E.g. In a half yearly policy, the premium amount actually received.
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At ICICI Prudential Life, attention to detail is low. As long as an employee is getting business,
nothing much concerns the management apart from that. Minute and little nothings don¶t really
count that much at ICICI.
Outcome Orientation
In MetLife the outcome orientation is high, but that clearly doesn¶t mean that the techniques
methodologies and approach used to achieve that outcome aren¶t important. Being honest,
fairand ethicalare all very important while one tries to achieve the given targets.
For Max New York Life, the ends and means both are important. But the means used need to be
similar to what is being done in the organization i.e. If a particular protocol is being followed
then it must be followed to the T. Deviations are generally not accepted, ways and methods of
doing things are highly standardized and everyone needs to follow suit.
At ICICI Prudential life insurance results matter, the end goal is the most important. At ICICI,
little consideration is given to the means used. As discussed above NOP and collected premium
are of paramount importance.
People Orientation
The people orientation at MetLife& Max New York Life both seemed to be high. With mostemployees being interviewed telling us that the management was pro-people and that the
decisions that were taken by the senior management were more or less in the approval zone of
the employees in general.
At ICICI on the other hand, the interviewed employees felt that this was not the case and the
primal focus of the organization isachieving targets and sustaining growth. Popular opinion on
the management¶s decisions is that people orientation is the second or third most important
priority.
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The Socialization Process
Pre-arrival Stage:
In general, the selection process followed by almost all life insurance companies is highlysimilar; this is so due to the very nature of the industry in which these companies operate. Mostof the managers and associates are selected for the various positions on the basis of their
marketing and selling expertise. Other areas of concern are:
y People Skills
y Relationship Management
y Enterprisingness4
y Tactfulness
y Ability to handle new and difficult situations
The Training & Induction Program:
In the Insurance sector, the attrition rate is on a higher side, as the job is demanding and placed
in a very higher-pressure environment. Also one is providing the sales and service,not for a
product but a promise.
It takes a lot of effort from an employee¶s perspective to balance her or his ethical commitment
towards a client and her or his professional commitment towards her or his employer.This alone
is the single biggest contributing factor towards the high attrition rate.
Now, On the basis of the aforesaid, it comes as no surprise that induction programs in the life
insurance business are short in duration and crisp in nature. They are conducted in stages based
on the time spent by an employee in the organization and the route she or he has taken to reach a
particular position.
4embark on bold new ventures (Source:http://ardictionary.com/enterprisingness/8803)
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For employees who have been promoted from within the organization, there is a different format
followed, as compared to those employees who directly join at a slightly higher position.
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MetLife India¶sTraining &Induction Programs
The company takes ample measures to train and retain its employees in the organization so as to
enable the company to grow holistically. MetLife India uses the following induction and sales
training programs respectively.
MetLife Management Induction School
MetLife introduced the MetLife Management Induction School, so as to train all new employees.
The program uses a different nomenclature for different positions, apart from MetLife
Management Induction School; the name of the program for the next hierarchical level is Agency
Manager Development School.
The company also has another program, which is mandatory for all sales employees:
CST: Compliance and Sales Training
It¶s a short training program. The aim of the Program is focused on development of the selling and
marketing capabilities of the new employees and associates of the company.
MetLife always initiates training requirements and supports the employees. The main aim of MetLife is to
equip its employees to be all - round sales professionals by the use of appropriate training, coaching and
guidance. The induction training consists of the following modules:
y Product and Process training
y Sales Personality development
y Skills training
y Professional courses
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Employee Growth & Motivation
In order to incentivize each one of the employees, a whole new Recruitment Rewards and
Recognition Program (R &R) was launched.
The R &R includes Monetary and Non Monetary benefits such as:
y Free training camps
y Free coupons for the Month end
y Free service (free life and or health insurance)
y Awards and certificates
y Medal of honor for the best performing employee of the year
The goal sheets have been simplified in order to provide the employees with an opportunity to
aspire for better and higher achievements. The agency structure has also been simplified to
enable faster decision-making and career progression.
MetLife India conducts monthly meetings with all its employees and managers for discussing the
current issues faced by them in the organization. This is done so as to establish transparency in
the working of the organization
Job rotation is done on an employee and / or organizational need basis. It works for the mutual
benefit of the employees¶ as well as the management.
The hierarchical structure is becoming quite narrow and a manager hardly needs to handle about
4-5 employees in a row, this speeds up the decision-making process and makes the employees
happy, as they don¶t need to report to many managers at one point in time.
The incentive-based structure is highly flexible. When the number of clients handled by a
manager increases, the monetary benefits also jack up to the next level.
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y Operations Training:
Operations Training takes care of the operational needs, provisions, etc.
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ICICI Prudential¶s Induction Program
UDAAN - Life Insurance Fundamentals f or Executive Trainees
The agency model of business has several challenging roles with true entrepreneurial flavor wherein one needs to set up one¶s own distribution channel by identifying and recruiting a
passionate team of insurance advisors.
The ET would be leading the team (including joint sales calls) to achieve sales and businessobjectives with ongoing organizational support in terms of regular training, assistance in
recruitment and brand increasing the brand pull of ICICI Prudential.
The ET is also expected to focus on Sales Efficiency parameters viz. Advisor Activation,Average Premium and on market development for new products and / or services, which ICICI
Prudential may choose to offer in the future, post feasibility studies off course.
This profile presents a unique opportunity to lead people, develop business and inculcateentrepreneurial skills.
Upon joining ICICI Prudential, the ET will go through a comprehensive induction programcalled:
³LIFE´ - Life Insurance Fundamentals f or Executive Trainees
Then they take charge as a Unit Manager. The LIFE program is followed by:
The Stepping Stones program
This program guides career progression. It is an objective program driven by meritocracy andtransparency. Moreover, Stepping Stones offers great flexibility to make one¶s career
progression rewarding and commensurate with one¶s aspirations.
ET Alternate Channels
As an Executive Trainee in Alternate Channels, the individual would take charge as an AssociateFinancial Services Manager (AFSM) post the induction program. Here, the individual may be
absorbed in any of the Alternate Channels, based on organizational requirement and thecapability / capacity of the given individual.
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Employee Growth and Motivation:
People are considered to be the most valued asset at ICICI Prudential. Therefore, the
organization has an environment wherein the Employees tend to gain a level of freedom, which
provides satisfaction, and most importantly, a sense of professional fulfillment.
They have created a performance driven work culture with a focus on creating leaders. It follows
meritocracy and elevate solely based on an individual¶s performance and ability to take on higher
roles and responsibilities.
Since over 90% of all recruitments are done at the entry levels, elevations are made from within
the organization. Which in turn acts as a great motivating factor for all employees, they providethe employees with opportunities to move into different functions and get cross-functional
exposure thereby improving skill set and knowledge base of its employees.
There is a lot of autonomy at ICICI Prudential¶s work environment; it provides a platform to
enhance an employee¶s individuality. The average age of employees is 27 years making the work
atmosphere vibrant and full of enthusiasm.
Tools f or Career Growth (ICICI)
Perf ormance Appraisals
Performance appraisals are carried out twice a year. They serve as an opportunity for two-way
discussion between managers and employees. Thusproviding a chance to review
accomplishments and set new and higher business objectives and goals.
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Training & Development
Apart from the prescribed Training programs, various other training sessions are conducted
along with the job, by the use of e-learning modules and instructor-based classes. The aim of
these training sessions is to enhance the skills and enable employees to carry out their roles and
duties in the most effective and efficient manner possible.
Internal CareerOpportunities
It is a non-hierarchical organization that believes in flexibility and having the right person for the
right job. An employee can apply for other positions within the company internally thereby
having internal opportunities to grow in any field she or he is best suited for and / or desires for.
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Factors of Spirituality
The factors of Spirituality include the value system of the organization, These values are thosewhich an organization tries to inculcate in their employees and thus they end up forming the
dominant culture of the given organization.
MetLife India¶s Value System
Personal responsibility
They expect employees to perform in an efficient and effective manner, they want successful
leader¶s, who can take decisions independently so as to get the desired results.
Team Work
The organizational focus is on functioning in an effective, efficient and productive manner in
teams so as to achieve the common purpose.
Financial Strength
The company operates efficiently,trying to minimize costsand still strive for strong business
results.
Integrity and Honesty
The management is committed to conducting all business transactions in an ethical, truthful,
sincere and fair manner.
Innovation
Continuously creating and introducing new and original ideas, ways of doing things, etc. Theyfocus on collective power of diversified work-groups, which in turn is a very important factor for
innovation.
Max New York Life Values and Beliefs
Excellence Max New York Life focuses on achieving the highest possible standards of quality in every
aspect of their business, it starts from in-house training to productand service delivery to the endclient.
Honesty
Transparency, Dependability and Integrity form the cornerstones of the Max New York LifeInsurance, as claimed by the organization.
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K nowledge
Focus is always onspecialization, which requires knowledge and domain expertise. Theybelieve
bin the combining global expertise, technical know how and local experience, knowledge.
Caring
Caring for the client, Max New York Life is attempting to refocus the life insurance sector on theneeds of the client, in a highly specialized and specific manner. They want theirprocess¶s to beresponsive, personalized, humane and empathetic in nature.
ICICI Prudential Life Insurance Value System
Transparency
Total transparency in all channels of communication (internally and externally) and complete
accountability in customer deliverables. This value helps push their employees to build trust on
their customers, which in turn helps in brand building for ICICI Prudential.
Empowerment
ICICI Prudential providesa platform of opportunity, from an employee to a partner in progressive
growth.
Passion
The passion to excel with customer focus in mind is what motivates ICICI Prudential to attaineven greater milestones.This inherent principle drives employees to set even higher benchmarks
of excellence and performance.
Integrity
Integrity is about honesty, sincerity, sound moral principles, keeping promises and fulfillingexpectations. ICICI Prudential Life Insurance Company focus on integrity so as to exceed
beyond the organization's capacity to not onlyfulfill the needs of the stakeholders but alsoconsider and cater to the vision and values of everyone involved.
Humility ³True leadership in the service industry requires humility to keep one's ego sublime and to serve
others.´ICICI Prudential looks for Humility in their employees; those who can keep the interestsof the customer and the organization before they¶re own and work efficiently and effectively as a
team.
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R eferences:
www.maxnewyorklife.com
www.metlife.co.in
www.iciciprulife.com
www.ebscohost.com
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