Advertisment Effective

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Project Report on Advertising Effectiveness [Advertising/Sales Promotion/Sales Management]

CONCEPTUAL STUDY OF PROMOTION MIX People no longer buy shoes to keep there feet warm and dry. They buy them because of the way the shoes make them feel masculine, feminine, rugged, different, sophisticated, young, glamorous, "in" buying shoes has become an emotional experience . Our business now is selling excitement rather than shoes. - Francis C. Rooney Modern Marketing Trends : Modern marketing calls for more than developing a good product it attractively and making it accessible to target customers. Companies must also communicate with their present and potential customers. Every company is inevitably cast into the role of communicator and promoter. What is communicated, however should not be left to change. To communicate effectively; companies hire advertising agencies to develop effective ads; sales promotion specialists to design sales incentive programmes and public relations firms to develop the corporate image. They train their sales people to be friendly and knowledgeable. For most companies, the question is not whether to communicate but rather what to say, to whom.

Promotion Technique :Promotion influences demand by communicating product and company message to the market. A promotion Techniques involves the co-ordination of all communication efforts aimed at a specific audience; consumer and shareholder. The most critical promotional question is the proper mix of advertising, personal selling, sales promotion and publicity. The promotion mix is usually co-ordinated on a campaign basis, taking the campaign may efforts include a total campaign with one unified theme. All promotion messages tie in to this theme in one way or the the, rather than conflicting with it.

What is Advertising :The word ‘Advertising’ has its origin from a Latin word ‘Adventure’ which means to turn to. The dictionary meaning of the word is ‘to announce publicity or to give public concerned to a specific thing which has been announced by the advertiser publicity in order to inform and influence them with the ideas which the advertisement carries. In business world the terms in mainly used with reference to selling the product of the concern. The advertising, as Jones defines it is "a sort of machine made mass production method of selling which supplements the voice and personality of the individual salesman, such as manufacturing the machine supplements the hands of the craftsman." It is thus a process of buying/sponsor/identified media space or time in order to promote a product or an idea. From a careful scrutiny of the above definition, the following points emerge :

Advertising is a paid form and hence commercial in nature. This any sponsored communication designed to influence buyer behaviour advertising. Advertising is non-personal. Unlike personal selling, advertising is done in a nonpersonal manner through intermediaries or media whatever the form of advertisement (Spoken, written or visual). It is directed at a mass audience and not directed at the individual as in personal selling. Advertising promotes idea, goods and services. Although most advertising is designed to help sell goods, it is being used increasingly to further public interest goals. Advertising is identifiable with its sponsoring authority and advertiser. It discloses or identifies the source of opinions and ideas. Advertising thus is :

1. Impersonal 2. A communication of ideas. 3. Aimed at mass audience 4. By a paying sponsor. The two forms of mass communication that are something confused with advertising are publicity and propaganda. If we eliminate the elements of the "paying sponsor" (The paid requirement) we would have the element of publicity left : For publicity is technically speaking, advertisement without payment. In a similar manner. If we eliminate the requirement of an "identified sponsor", the resulting communication is propagandistic. It is important for us to emphasize that advertising may involve the communication of ideas or goods of service. We are all aware that advertising attempts to sell goods and services. But we may overlook the more important fact that it often sells ideas. Advertising may persuade with information; it may persuade with emotion: more frequently, it endeavours to persuade with some mixture of both. (1) Electronic Media Advertisers use two types of media to reach target consumers over the airwaves; radio or T.V. (A) Radio : Advertisers using the medium of radio may also be classified as National or Local advertisers. The radio is a prominent vehicle of advertising in our country and accounts for a large sum of the total advertising budget. The radio serves principally local rather than national or large regional markets. Many small advertisers use the radio. So do some large organizations. When T.V. became a factor in the advertising scene, some industry observers felt that radio advertising might become insignificant or even disappear. This has not been so, for radio operators have responded to the challenge by offering programmes that features music etc. which appeal to local audience consumers have responded very favourably to this approach. Moreover TV does not have much coverage in our country.

(B) Television : T.V. - Advertising Media :Late in India, a growing class of advertising media has been the TV. In our country, commercial advertising on TV is severely limited because broadcast timings are only in the evenings. The TV is a unique combination timing of sight and sound and achieves a deeper impact than the other media do. This is particularly advantageous for advertisers whose product require demonstration. TV advertising offers advantage of impact, mass coverage, repetition, flexibility and prestigious. In our country not everyone has a TV set; therefore it does not reach everyone. Moreover, in rural India where 76.31% of our population lives. There are hardly any TV sets, except at the community centres where electricity is available. Moreover, TV programmes in our country do not offer much selectivity. The translation is limited, any centers do not have TV towers. TV appeals to both the senses of sound and of sight . As a result is combines the two to produce high-impact commercials. Finally, the fact that product or service is promoted on TV may build a prestigious image of the product and its sponsor. The pleasure derived from watching TV is at least potentially transferable to the advertising message delivered through the medium. (ii) Print Media The print media carry their massages entirely through the visual mode. These media consist of newspapers, magazines and direct mail. (A) Newspaper : A sizable share of the total advertising budget is spent on advertising in newspapers. Newspapers in our country virtually reach most of the homes in the cities. Since newspapers are local, marketers can easily use them to reach particular markets. This selectivity is easily rigorous. Some are in the twelve-hour range. From the viewpoint of the advertiser, newspaper offers several advantage, they are local in content and appeal and provide opportunity for direct communication between a product and its local dealers or distributors. Because newspapers supply news, they offer an atmosphere of factual information and of currency that may be favourable for some advertising situations. Advertisers can reach a very broad audience through newspapers which offer great flexibility. The advertisers may choose the specific area to be covered and the advertisement can be placed in newspapers at very short notice as compared with other media. (B) Magazines :

Magazines are also mean of reaching different market, both original and matinal and of general and specific interest. An organisation may approach national markets through such publication as Business India, Famina, Sportsweek, India Today, Business World and Filmfare. Some marketers divide their market on the basis of such variable as age, educational level and interest magazines. Magazines are divided into those parts that serve business, industrial consumers, ladies, sports etc. The diversity of magazines is tremendous. Some offer news or together "General Interest" content to huge audience. Others are highly specialised, technical or even exotic. In general, magazines offer advertiser the opportunity to reach highly selective audience. The primary advantage of magazine advertising are selectivity of market targets; quantity reproduction long life; the prestige associated with some magazines; and the extra service offered by many publications. The quality of magazines reproduction is usually high. Consumers sometime keep individual copies for long period of time; reread them or pass them on to other. Some magazines have prestige value. The marketer can cover national or large regional markets at a low cost per contract (per individual reached). Magazines generally offer high-quality printing of advertisement. (iii) OUTDOOR AND TRANSIT MEDIA (A) Outdoor Advertising : Outdoor Advertising :Outdoor advertising involves the use of sign and bill-boards, posters or displays (such as those that appear on a building’s wall) and electric spectacular (large, illuminated, sometime animated sign and display). The marketers may purchase billboards on the basis of showings. A showing indicates the percentage of the total population of a particular geographic area that will be exposed to it during one month period. The highest showing is 100. Here the number of billboards is would attract approximately 50% of the local population about 20 times during a month. Sings are usually smaller than billboards and are erected and maintained by the marketer rather than by the advertising media. This form of advertising has the advantage of communication quick and simply ideas of repetition and of the ability to promote products that are available for sales. Outdoor advertising is particularly effective in metropolitan and other can use this medium to bring the products to the attention of consumers or to remaining them of the product, while they are on shopping trips or area disposed towards shopping. Advertisers may utilize this medium to economically reach a large mass of people or small local markets. (B) Transport Advertising :

Transport advertising appears on the inside or outside of taxis, buses, railways and other modes of passenger transportation. Marketers may use transit advertisement to attain high exposure to particular groups consumers on theory way to and from work and tourists. Repeat exposure is possible for a majority of the people in our country use public transport basis. Transport advertising is useful in reaching consumers at an advantageous point which they are embarking on a shopping trip. This medium is a low cost medium.

According to the American Marketing Association, Sales Promotion consists of those marketing activities other than personal advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays shows and expositions, demonstration and various non-recurrent selling efforts not in the ordinary routine. Sales promotion activities are impersonal and usually non-recurring and are directed at the ultimate consumers, industrial consumers and middlemen. These activities tend to supplement the advertising and personal selling efforts. Examples of sales promotion are free product samples, trading stamps, store displays, premiums, coupons and trade shows. For many organisations, including the marketers of food, toys and clothing, store displays are an important sales promotion device. Display exposes the promotion messages to consumers at the time and place of purchase. Such exposure is especially important for items that are bought on impulse. Numerous consumers products are purchased in stores that use self-service selling method's. Marketers of such items need effective display in order to distinguish their products from those of their rivals. PUBLICITY Publicity is a means of promoting the mass market and is similar to advertising, except that it is free, is found in the editorial portion of news media and pertains to newsworthy events. The most common type of publicity are news release (also know as press release), photographs and feature stories. Marketers have less control over the nature of the publicity that their organisation and products receive than they have over their advertising, personal selling and sales promotions messages. Upon receiving a news release, for instance, the editor or broadcast station programme director may choose to throw the release in the waste paper basket, change the hording, or print or broadcast it in the original form. The disposition of the news release is entirely in the hands of the media and cannot be dictated by the marketer. Publicity may be negative as well as positive. Some products and brands have received bad publicity; for

example cigarettes, wings, artificial sweeteners have been branded unsafe or unhealthy in the publicity which they would rather have done without. Many a companies and trade association officials attempt to develop favourable working relationships, with the media in order to minimise bad publicity. They realize that such communications to the public may have every adverse impact upon the image of the organisation. PERSONAL SELLING Personal selling consists of persons to communication between the sales persons and their prospects. Unlike advertising, it involves personal interactions between the sources and the destination. Advertising aims at grouping the shotgun approach, while personal selling aims at individuals the right approach. Sales persons are in the position to tailor their messages according to the unique characteristics of each prospect. Further, by observing and listening, sales persons receive immediate feedback on the extent to which their messages are getting across. If feedback indicates that the message is not getting across, the sales person may quickly adjust it or the method of its presentation. Personal Selling :Personal selling may be a very intense means of promotion. Consumers can easily leave the room-during a TV commercial, ignore a store display. The most effective method of promotion probably is to have sales person provided that the organisation has sufficient funds. The most effective method of promotion probably is to have sales person call upon every target consumers, for many institutions, especially those that appeal to the mass market, this would be terribly inefficient. As a result, they employ mass marketing techniques such as advertising, personal selling is very important in industrial marketing.

PUBLIC RELATIONS Marketers engage in public relations in order to develop a favourable image of their organisation and products join the eyes of the public. They direct this activity to parties other than target consumers. These "other" include the public at large labour unions, the press and environmental groups. Public relations activities include sponsoring, lobbying and using promotion message to persuade members of the public to take up a desired position. The term public relations refers to a firm's communication and relationships with the various sections of the public. These sections include the organisation customers, suppliers, share holders, employees, the government, the general public and the society in which the organisation operates. Public relations programme may higher be formal or informal. The critical point is

that every organisation, whether or not it has a formalized (organised, programme, should be concerned about its public relations. ADVERTISING EFFECTIVENESS Advertising is an art not a science. Effectiveness of which cannot be measured with a mathematical or empirical formula some advertisers argue that advertising efforts go to waste, but every advertiser is keenly interested in measuring or in evaluation of ad. effectiveness. Testing for the effectiveness of ad. will lead advertisement testing must be done either before or after the ad has done in the media. It is of two types, pretesting which is done before the ad. has been launched and one is referred to as cost testing which is done before the ad. has been launched and one is referred to as cost testing which is done after launching the advertising campaign. The basic purpose of advertising effectiveness is to avoid costly mistakes, to predict the relative strength of alternative strength of alternative advertising strategies and to increase their efficiency. In measurement of ad. effectiveness feed back is always useful even if it costs some extra expenditure to the advertiser. Sales-Effect : Communication-effect advertising research helps advertisers assess advertising's communication effects but reveals little about its sales impact. What sales are generated by an ad that increases brand awareness by 20% and brand preference by 10%? Advertising's sales effect is generally harder to measure than its communication effect. Sales are influenced by many factors besides advertising, such as the product's features, price, availability and competitors' actions. The fewer or more controllable these other factors are, the easier it is to measure advertising's effect on sales. The sales impact is easiest to measure in direct-marketing's effect on sales. The sales impact is easiest it is to measure in direct-marketing situations and hardest measure in brand or corporate-image-building advertising. PROGRESS TESTS These assess the various stages of buyer awareness, preference, buying intention and the actual purchase in relation to ad. effort. They are called sales effect tests. Measuring Sales Response to Advertising : Though increase in sales in the true measure of advertising effectiveness, in reality it is difficult to measure the increase that is due to a particular advertisement. It is rather

difficult to correlate the response in sales with the advertising programme. However, a few methods have ben discalled in the following paragraphs which are generally used to measure the sales response to advertising. The Netapps Method : The term Netapps has been framed from the term net-ad-produce-purchases. This method, which has been developed by Daniel Starch and Staff company, requires the measurement of both readers and non-readers who purchased and who did not purchase the brand under investigation. The netapps method is useful in the relative measurement of the sales-effectiveness of various advertising approaches. But the method is subject to a high level of false reporting and open to interviewer bias. Moreover, we have considered advertising influence as the only factor which results in a purchase. There may be, and often are, other variables which affect purchases. Sales Results Tests : The additional sales generated by the ads are recorded, taking several routes. Past Sales before the ad and sales after the ad are noted. The difference is attributed to ad impact. Controlled Experiment : In experimental market, any one element of marketing mix is changed. It is compared with the sales of another similar market. The element's presence observance is a reason for difference in sales. Instead of two markets, the experiment can be carried on the two groups of consumers. The inventory audit is dealers inventory before and after the ad is run. Attitude Tests This is an indirect measurement of the post-testing effects of ads on attitudes towards the advertised product or brands. The change in attitude as a result of advertising is assessed. The assumption is that favourable attitude towards the product may lead to purchases. Most ads are designed to either reinforce or change existing attitudes. An attitude is a favourable or unfavourable feeling about a product. Back to Main Menu


1.0.1 Success of every business enterprise depends on its human resource. Money, material and machines are inert factors; but man with his ability to feel, think, conscience and plan is the most valuable resource. At the same time human elements are most difficult to be inspired, controlled and motivated. The upcoming competition in India, will demand high motivational level of its employees. 1.0.2 Growth of an enterprise is vital for the economic development of the country. This is possible only by maintaining the enthusiasm and motivation of the employees, which is vital for carrying out the operations in most efficient manner. The most successful companies, all over the world have designed their business policies to achieve higher productivity by using potentiality and strength of people. 1.0.3 The basic aim of human policies is the genuine concern for the people. Proper design of human policies is based on the higher responsibilities, personal and positive approach in the total perspective of organisational interest. The world's best companies have established their strength with their people. The employees identify themselves with the company they are working for. This also help in building up their spirit, morale and espirit-de-cops which becomes strength of the company. The culture of excellence thus nurtured contribute to growth with stability and continuous improvement in productivity. 1.0.4 Finding the right man for the job and developing him into a valuable resource is an indispensable requirement of every organisation. Human resources are capable of enlargement i.e. capable of providing an output that is greater than the sum of the inputs. Proper recruitment helps the line managers to work most effectively in accomplishing the primary objective of the enterprise. In order to harness the human energies in the service or organisational goals, every manager is expected to pay proper attention to recruitment, selection, training, development activities in an organisation. Proper promotional avenues must also be created so as to motivate employees to peak performance. Thus, personnel functions such as manpower planning recruitment, selection and training, when carried out properly, would enable the organisation to hire and retain the services of the best brains in the market. 1.0.5 The human resource management is very crucial in respect of information technology services than other manufacturing or marketing enterprises. The IT services are technical in nature and at every stage the human touch is involved. Hence it is well motivated and devoted manpower which is very much essential for the success of IT industry.

1.1 ROLE OF HR MANAGERS 1.1.1. And Some industry commentators call the Human Resources function the last bastion of bureaucracy. Traditionally, the role of the Human Resource professional in many organizations has been to serve as the systematizing, policing arm of executive management. In this role, the HR professional served executive agendas well, but was frequently viewed as a road block by much of the rest of the organization. While some need for this role occasionally remains you would no want every manager putting his own spin on a sexual harassment policy, as an example—much of the HR role is transforming itself. The role of the HR manager must parallel the needs of his changing organization. Successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered. Within this environment, the HR professional, who is considered necessary by line managers, is a strategic partner, an employee sponsor or advocate, and a change mentor. 1.1.2 Strategic Partner:-In today’s organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The HR business objectives are established to support the attainment of the overall plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions, hiring; reward, recognition, and strategic pay; performance development and appraisal systems; career and succession planning; and employee development. 1.1.3 Employee Advocate:-As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy. Fostering effective methods of goal setting, communication, and empowerment through responsibility build employee ownership of the enterprise. The HR professional helps establish the organizational culture and climate in which people have the competency, concern, and commitment to serve customers well. In this role, the HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to problem solving, and regularly scheduled communication opportunities. 1.1.5 Change Champion:-The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals, and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this.

1.2 LEADERSHIP AND EMPLOYEE INVOLVEMENT. 1.2.1 The main role of leadership was seen as creating a participatory process for employee involvement, to build collective wisdom. Control has given way to collaboration and the old paradigm of promoting competition and motivating through incentives shifted to creating cooperation and oneness amongst people. This is a marked shift to build effective teams. Research shows that six out of every 10 employees like to work in teams. 87 per cent of all Fortune 500 companies use parallel teams and about 100 per cent of all companies use project teams. 1.2.2 Story telling and appreciative enquiry are emerging as a new dimension in positive motivation. Finding out what's wrong seems to be the trend. In Walt Disney, telling success stories is one of the important methods used to remind people of greatness and goodness of the organisation. Leaders in Disney concentrate on quality, values and involvement. Speaking in the plenary sessions, Tom Peters said, " We have transitioned from an asset-based economy to a talentbased economy. The new definition of lay-off is untalented go talented stay. Leaders must realise that talent is equal to brand". His new theory is EVP which means "Employee Value Proposition". 1.2.3 Rosabeth Moss Kanter said, " Human beings are good raw material, they become assets when you train them to increase their knowledge and skills". She added that only a few organisations really train people to make them a success. Seconding this, Mr Peters pointed out how most organisations are not serious about developing people. They spend on an average 26.3 hours per person per year on training. A surgeon, a pilot or an athlete on the other hand spends 1015 times more on training. 1.2.4 He also stated that the HRD department should be renamed TDFD (Talent Development Fanatic Department) and wealth for this new regime will flow from innovation, not organisation. Quoting Gary Hamel he said, only those employees will succeed who are "certified radical". Only those companies will succeed who create a cause, not a business. Leaders according to him are living individuals, whom people can smell, feel and touch. Their passion for work must be infectious. 1.2.5 Another aspect of leadership if the decision to introduce fun in the work place. Research shows that this reduces absenteeism and builds stronger, deeper and longer lasting relationships. It appears out of every 100 Fortune companies in the last decade, 69 are dead and only 31 are alive. In a Forbes Magazine study of around 100 companies from '17 to '87, only 39 companies were found to survive. Management of Change:-Research proves that many change models don't consider the human experience during change. The overriding concern seems to be to downsize. It was found that most change processes go through four fundamental stages.
• • • •

People try to resist or deny change They adapt, participate in the change They attempt to add value The culmination or formation of a new status-quo

1.2.6 A number of presentations revealed that leaders who initiate change must do so with one foot in the future and the other planted in past values. Forgetting tradition must can devalue existing

strengths. The success of a change process depends on the skill of the facilitator to create a participatory process to enlist the support of people and address the issue of grief. 1.2.7 E-Learning :- Organisations like Ford Motor, Hewlett Packard, Intel and IBM are using elearning to increase the knowledge of their people. Companies like Fordstar even manage time differences between countries while conducting virtual class rooms, chats, demos, presentations to communicate new concepts, product details, core values, issues of governance and corporate communities. 1.2.8 CEO's are talking to their people about new ideas and enlisting their support through forums and message boards. This is changing the way people behave and work. The advantages of elearning are many: It is self-paced, flexible, less expensive, modular and has a huge reach. 1.2.9 Universities like Cornell, MIT, Stanford, etc, have started emphasizing e-learning to attract a worldwide audience. Web-centric universities are becoming the order of the day. William Taylor, editor and managing partner of the Fast Pace magazine, said, "There is no going back from back from dotcoms". He was of the opinion that there is a merger taking place between computers and human beings. 1.3 INNOVATIVE PRACTICES IN HR 1.3.1 The Innovative Practices in Human Resources study uncovered 12 practices that are reducing HR costs and improving service quality to employees. Key findings from this research included the need for HR managers to streamline processes, lower overhead costs, and enable their departments to advance from transactional organizations to strategic partners in the business. 1.3.2 Practices and technologies include:
• • • • • • • • • • • • •

Internet and intranet employee services Strategic human resources Centralized HR departments and call centers 360-degree performance appraisals HRIS systems Employee self-service Voice response systems (VRUs) Resume scanning and Internet recruitment Kiosks Automated time and attendance systems Team policies and development Outsourcing Business process reengineering (BPR)


1.4.1 Most Human Resource professionals are familiar with the concept of strategy. There is much more concentration and focus today on the strategic outcomes of human resource activity than ever before. The area of compensation is no exception. 1.4.2 Pay for performance systems are becoming more and more popular as senior managers reach beyond the use of compensation systems to deliver pay. There is far more interest in more closely linking the reward mechanisms to the achievement of corporate objectives. Motivation for superior performance is the goal. 1,4.3 In experience, most organizations will profess to a "pay-for-performance" philosophy as a keystone of their compensation system. Such a system requires solid grounding in a clear and documented link between performance and salary increases. Unfortunately, the link between individual performance and pay is frequently nonexistent - "merit" pay is a hollow concept in this regard. 1.4.4 A merit system demands that managers be willing to make distinctions in merit increases based on performance. However, several factors get in the way of this happening. First, the annual salary change is usually a small percentage. Giving the better performer 2% more than the cost of living has little motivation or recognition attached to it. Similarly giving the poor performers 2% less than the cost of living increase is not that much of a penalty. So many managers don't make that distinction - it is too much hassle. So everybody gets the same increase. 1.4.5 Second, most performance appraisal systems are after-the-fact appraisals. In other words, at appraisal time, which is usually toward the end of the year, managers are required to evaluate the performance of their staff. It means sitting down and trying to reconstruct what each staff member did, capturing it in a non-threatening way, communicating the evaluation without a fuss and finally, making a merit increase recommendation. Sound like a familiar pattern? It is a process that repeats itself year after year. 1.4.6 The end result is usually a lot of avoidance behavior. Managers avoid the appraisal process like the plague. Although employees profess to want to "know where they stand" they often take issue with the appraisal. Besides, they don't listen to the evaluation, they wait until the penny literally "drops". "What is my rating and how much do I get?" is a constant theme in merit systems where salary decisions are tied so closely with the appraisal process. 1.4.7 You might well ask is there any way out of this mess? The answer is fortunately yes. Organizations that are the best and want to separate themselves from the rest, are turning away from the merit system and toward an annual incentive system, particularly for middle and upper management positions but increasingly for teams and individuals lower down in the organization as well. 1.4.8 They are adopting a system of annual incentive bonuses linked directly to the achievement of corporate and individual objectives in three specific areas. The areas are corporate revenues and gains, cost containment and behavioral changes. The first two areas are quantitative and the third area, which is gaining in importance, is qualitative in nature, and has a great deal to do with building managerial and individual competence.

1.4.9 Why Is This Transition Occurring? :-Well, there are many challenges facing businesses today and these challenges are driving them to find better ways of linking pay and performance to the achievement of corporate results.. 1.5 CHANGING JOB DESIGN IN IT COMMUNITY 1.5.1 The California State University (CSU) system is being challenged to meet increasing demands for educational and administrative services through the innovative use of technology and human resource systems. Even though funding levels for higher education have been cut in recent years, public/taxpayer expectations and the demands for quality education, access, service, and accountability have grown. Technology initiatives within the CSU have resulted in significant advances and improved technical capabilities and efficiency. Human resource and organizational systems are also needed to capitalize on and thrive in this rapidly changing work environment. 1.5.2 In 1991, the CSU began a study to look at alternative work and job design approaches to meet these challenges. The study focused on the information technology community and how work processes and activities could be better organized to remove artificial barriers and improve organizational effectiveness, a process often associated with the term "reengineering." Secondly, the study focused on developing a job design approach that could adapt to changing skill requirements and that would promote the continuous acquisition of skills for knowledge-based employees in information technology. The goal of improved organizational effectiveness and an orientation towards reengineering and skills guided the development of the proposed job design approach. 1.5.3 This article begins by identifying several trends that led to the study, then describes the overall project within the context of an organizational effectiveness equation. A new job design approach that was proposed as a result of the study is presented, including a new classification structure and competency dimensions and measures for defining and evaluating positions. Finally, other supporting systems are described for an integrated human resources approach. The development phase of the project has been completed, and the CSU anticipates entering into negotiations with its employee representatives in the near future. 1.5.4 Three trends have had a direct impact on the development of a strategic job design approach for the information technology community at the CSU: (a) diversification and convergence of technology, increased demand for educational access and (b) changes in instructional delivery methods; and changing work place demands and priorities. 1.5.5 The technology demands within higher education lead to a complex and dynamic computing environment. Academic and administrative computing strategies tend to be at cross-purposes in terms of defining systems requirements. This has resulted in widely diverse systems and technology within and across the CSU's twenty campuses. Increasingly, however, campus systems are becoming more integrated, as data are shared across multiple platforms on a network "highway" that is linked to external information sources. Networking and desktop computing have removed traditional boundaries for information access, research, and decision-support purposes. Data, voice, and video technologies continue to be combined in more interactive and user-friendly formats.

1.5.6 In terms of educational trends, many institutions offer distance learning using various transmission media and are incorporating instructional technology into curriculum development. Students expect guaranteed access to technology and to research databases, and this access has become an issue of social responsibility.[1] Library and computing functions are becoming increasingly interdependent in "an infrastructure of scholarly communication" within higher education.[2] Workplace trends, as presented in Sustaining Excellence in the 21st Century: A Vision and Strategies for College and University Administration, well represent the outlook for the CSU. Two key issues are identified: (1) Economics. There is increasing pressure to constrain administrative costs within the "labor intensive cost structure" that exists in higher education. Reductions in staff are occurring at the same time as transaction volume and service expectations are growing. (2) Decentralization of responsibility. With fewer people and greater access to information, organizations are moving responsibility for decision-making downward to the point of service. Work organization is shifting away from job specialization and a task/procedure orientation, to more generalized job responsibilities focused on outcome and greater participation on crossfunctional teams (3) Another central workplace trend is the "earning and learning" environment described by the U.S. Department of Labor in its Secretary's Commission on Achieving Necessary Skills (SCANS) report. To quote Thomas P. Foley, Secretary of the Pennsylvania Department of Labor and Industry:"We've changed from the idea of "one skill, one job" to the reality of a range of skills that have to apply to a number of different kinds of professions. More to the point, workers must possess a skill that they continually upgrade just to keep pace in the professions they choose." (4) The influx of new technology and applications has created a demand for continual learning and adaptation. Due to the CSU's relatively stable workforce, maintaining skills to keep pace with changing technology was identified as a critical goal. Knowledge requirements are expanding to encompass a greater breadth of technologies and subject expertise, as well as including processoriented capabilities such as communication and negotiation skills. 1.5.7 The implications of these technological , educational, and workplace trends point directly to the need to reengineer organizational structures, work design, and processes. Based on these trends and overall organizational goals, two key objectives were established for a new job design approach for the CSU: flexibility and skill development. Fundamentally, each campus needs the flexibility to achieve its goals by distributing work assignments in a way that optimizes its available skill mix and promotes individual skill development and initiative.

1.6 OBJECTIVES OF STUDY 1.6.1 Following were the objectives of the study:1. To enlist emerging HR trends in Indian IT Industry

2. To review literature and research done in this area. 3. To find out lacking areas regarding the HRD in IT sector. 4. To measure the perceptions of IT sector employees in respect of application of HRD in their organisation. 5. To suggest the measures to fill the gaps and improve motivation level of employees and HR management in IT industry.

1.7 RESEARCH METHODOLOGY 1.7.1 The study was exploratory in nature. All published and unpublished available on the subject matter was consulted. Interview and discussions were held with the various executive/ Managers/ staff employed in IT sector. The HRD functions/ activities being undertaken in different IT organisations were also studied. Primary and secondary data available with these organisations was also used for this project study. 1.7.2 In order to measure the employees perceptions of emerging HR trends in different IT organisation, the survey was undertaken. The survey was based on structured questionnaire. The questionnaire was mainly based on objective type close-ended question, but few open ended questions were also included. 1.7.3 Firstly, the pilot survey on ten randomly selected respondents was undertaken. Then the questionnaire was modified accordingly, if desired. 1.7.4 The final questionnaire was administered in person to the extent possible and through mail if needed. The 100 respondents were selected among the executives and staff working in various IT organizations. The convenient random sampling technique was used for the selection of the respondents. 1.7.5 Finally, the results of the survey has been presented in Tabular form, analyzed and interpreted to meet the required needs of this project study and presented in Report form.



2.0 2.0.1

HR IT SCENARIO The web is altering the HRD landscape beyond recognition. The key to corporate success in the fast changing information era is ‘thinking on your knees’.


What is this thinking on your knees? Normally as the HR person you know what the situation is and operate from there. A repositioning is required in your decision process with questions like why, how and when and not just what. At this point you operate on your knee i.e. with far more dynamism and with a lot more effectiveness than thinking on your feet.


The employees are like gypsies, on the move all the time. They camp at some location, enhance their skills, responsibility levels and move on. This is particularly true of the professional from Software Industry. Opportunities are plenty and the next job opening is only a mouse click away. The question is not about what else you can do to retain an employee but it is about making him productive, while he is with you. The value addition will then happen for both the employee as well as the employer resulting in a win-win situation. This means that the new strategy calls for the recognition that no employee is expected to be permanently with you. Normal tenure in any organisation is likely to be between two to three years.

2.1 2.1.1

INNOVATION IS THE KEY Information technology and Internet have changed several equations. Reaching

out to the world market place is no more the challenge in achieving corporate victories. Out thinking the competition at electronic speed is the key to winning

corporate battles. The corporate success is sum total of entrepreneurship practiced by your staff. 2.1.2 The key to employee longevity :-Today’s most successful organisations recognize that to fuel growth and sustain a competitive advantage, they must make recruiting, hiring and retaining top talent, as the organisation’s major thrust area. Competent people deliver the rest don’t matter. Successful business organisations have no choice but to promote the performers and let non-performers go. 2.1.2 Organisations recognize that that their ability to gather, manage, analyse, distribute information and transform themselves into a learning organisation will provide continuity and ensure for them their leadership role. Systematic organizational learning should be central corporate philosophy. Learning, must be obviously followed by changes, which may not necessarily be welcomed by veterans in the organisation. But ‘change is the only Constant’ for guaranteed success. 2.1.3 Points to note: The following points are important and must be properly understood. · People have a great deal of informational knowledge to contribute to the organisation. ·

People are responsible
People desire opportunities to effect change, not just being expected to change.


Organisations need to create awareness amongst their employees about their vision and then empower them to act on that vision.


Establishing a sense of urgency well ahead of the problem surfacing.


Form inter-functional core group. Encourage the group to work together as a team.


Plan and create short-term win targets – reward employees and recognise achievers.


Consolidate improvements through a knowledge base driven system and institutionalise proven new methodologies.

2.1.5 ·

New Paradigms In HR Business plans must consider HR issues, focus and adapt.
Corporate goals must factor in individual career growth and personal growth must be tied to corporate growth and vice versa


Job responsibilities must facilitate personal development and learning should be institutionalized with well-established knowledge bases. Capturing experience and making it available ‘corporate wide’ should be a permanent feature of an organizations.

2.2 2.2.1

WAR FOR TALENT The world’s most popular people resource base seems to be falling short of numbers to meet its own demands. With added pressures of migration and attrition, can India’s IT industry achieve its software and services revenue target of $87 billion by 2008?


Country: India. Population: 1 billion-plus. If that sounds like too many people, think again. Plug in English-speaking and low labor costs, and suddenly we can envision $50-billion software exports target by the end of this decade. Not impossible, if we consider the scarcity of IT manpower across the world. Take a look at the US,

already with a 10- million-strong IT workforce, which needs to fill 1.6 million new jobs in the next one year. 2.2.3 Japan is no different and estimates close to a million new jobs. Germany is looking for 20,000 IT specialists and Italy is seeking 15,000 additional manpower. Their choice destination—India. 2.2.4 Ironically, the country which has been such a popular people resource for the IT industry the world over, is struggling with numbers to meet its own demand. To meet the overall software and services (domestic and export) target of $87 billion by 2008, according to the Nasscom-McKinsey report, the country will require a minimum of 2.2 million knowledge workers for its domestic needs. This implies that the present strength, which stands at 12,00,000 (December 2004), has to increase about twice, not just in quantity but in quality as well. 2.2.5 According to industry estimates, majority of the demand for manpower will be in the area of IT-enabled services. While Nasscom puts the requirement at 11,00,000, MIT says IT-enabled services and e-business will need 12,70,000 workers by 2007. Experts insist that since this sector does not require very highly skilled manpower, we can easily meet this demand. "IT-enabled services is a wonderful opportunity for India and for such services you don’t need highly skilled professionals. You just need smart graduates who can speak English, all you need to do is train them. For instance, in a call center, they need to be trained on accents and customer services,"
2.3 4 R’s of HR in IT Table 2.1





Job rotation Signing bonus Finders Fee Alumni connections Non-techs Externs Students Job sharing Interns Recognition programs 2.3.1
· · · · · · 2.3.2 · · · · · 2.3.3 1. 2. 3. 4.

Retention bonus Project pay Reduct FTE/same pay Telecommuting

Team assignments Skill inventories Competency development Certification

Broad job descriptions Flexible compensation programs Flexible jobs Positive problemsolving spirit

Denial (This is and long term) Misalignment (Ramping up/Ramping down) Timing Treating everyone the same Navigating the bureaucracy Demographics WHAT OTHERS ARE DOING Pooling recruitment efforts Increasing freedom at the dept level (on-the-spot hiring, broadbanding, etc.) Recruiting/retaining students Identifying tech skills in all jobs/people (Skill Inventories/assessment) Sharing staff RETENTION FACTORS Quality of boss Direction of department Exposure to new technologies Confidence in the company

5. 6. 7. 8. 9. 10. 11. 12. 2.3.4 · · · ·

Job security Challenging work Location Access to capital resources Caliber of co-workers Empowerment Department leadership Ability to influence department success

TAKING THE LEAD See ourselves as problem-solvers Develop critical skills and competencies in ourselves, then others Build compensation around results not tasks; competencies, not seniority Involve everyone. Constantly align and balance resources to meet changing needs SEARCH FOR TOMORROW Attract, retain and reward the best performers (Encourage all to be the best) Increase flexibility Reduce fixed costs Reduce administrative effort (Simplify, simplify, simplify) Utilize the full range of individual talents THE CRISIS Ø Shortage of IT workers COMPETITION Ø Ø Compensation stock options, profit sharing, incentives Alternatives outsourcing

• • • • •



2.3.7 Ø Ø

ATTRACTING Recruiting sign on bonuses Relocation incentives

Ø Ø Ø 2.3.8

Recruiters Reduced cycle time for hiring Campus/ job fairs / referrals/ internet RETAINING Ø Ø Ø Ø Ø Work environment Communication forums Telecommuting Flexible staffing Exciting projects


PRACTICES Ø Ø Ø Ø Ø Ø Ø Ø Focus on value Financial and human value Commitment to core strategy Linkage between culture an system Multi dimension communication Stakeholders partnerships Mutual support and collaboration ( teamwork) Risk and innovativeness

Ø 2.3.10 Ø Ø Ø 2.3.11 Ø Ø

Passion DEVELOPING Internship programs Training programs Career development programs LONG TERM SOLUTIONS Education, government, industry partnerships Curricula: technical skills and career skills ( teamwork and communication)


• • • • • •

Understand people What they want Long term perspective’ Innovative Co ordinated approach Career development I




In the last few years, more and more companies around the world are looking towards India for outsourcing their software requirements. The changing business environment is demanding new applications. In particular, the spread of clientserver computing in decentralised organisations involves the development of applications specific to a user's business.


Outsourcing is becoming a strategy for forward thinking IS managers. It is no longer just a means for reducing costs, but a tool for adding value to business. It enables organisations to concentrate on their core business, carry out business reengineering and provide information that is valid, timely and adequate to assist decision making at the management level and quality and cost control at the middle and lower levels.


As a result, outsourcing has gradually grown beyond the traditional idea of "having a third party running the data centre". It has come to mean, "any use of an outside contractor to replace or extend in-house resources".


Outsourcing is closely linked with corporate strategy, since it must support the organisation's major initiative in using IS. It should enhance and add value to the business. A rule of thumb to start and gain experience is, "if IS is low cost and of high value addition, keep it within the organisation, i.e. in-source. If IS is high cost and of low value addition, consider outsourcing".


In the past few years, whenever organisations around the world have outsourced to India, the Indian software companies have substantially helped to cut costs in software development projects or MIS environments, while maintaining high quality. Moreover, all these cost and quality advantages are coupled with the use of state-of-the-art technologies.


In 2004-05 more than US$ 2500 million worth of software development work was outsourced to India (The total software exports from India during the year was US$ 4085 million). This was 56% higher than outsourcing orders in 2003-04. It is estimated that the quantum of outsourcing may jump to US$ 5 billion and reach as high as US$ 10 billion by 2010 A.D.


3.0 3.0.1

OVERVIEW OF PROBLEMS The IT revolution is sweeping the world, particularly the western world in for nearly a decade now, creating enormous employment opportunities in this area. India joined the bandwagon well in time and smoothly though it is yet to entrench itself strongly in terms of corporate identity and significant share of global revenues in IT.


Our main contribution seems to be in the less glamorous areas of value addition, maintenance, Y2K, quality assurance and customisation of existing packages. The sudden eruption of opportunities in this area left no time for development of human resources in a planned manner and also software solutions which tended to be more ad hoc than being assured of quality.


With the enormous opportunities for employment, entrepreneurship with low capital investment and low gestation period for turning profitable, higher returns per employee and large return on investment/EPS, sustained encouragement from government, a very large number of organisations - large, medium, small - have been established. Correspondingly a large number of training establishments and cyber cafes have come up, most of which are in the cities and towns to cash in on the enthusiasm of the urban middle class.


A number of higher level courses have also been started mainly through private organisations besides the existing government (State/Central), university and autonomous institutions. There are about 500 private engineering colleges besides IITs, RECs, universities, colleges offering courses such as MCA, M.Sc., M.E., and M.Tech. In view of the apparent demand that appears to be exaggerated, most of the programmes (barring a few by government institutions and IITs) are very expensive, almost beyond the reach of a middle-class student. Yet candidates and their parents strain themselves financially to pursue the courses hoping to get an attractive job (financially) which remains a mirage by and large. The problems are further compounded by a lack of proper teaching faculty in most colleges and franchises.


Except in well-established institutions, job-placements are poor. Even those trained in reputed institutions find their jobs monotonous, leading to depression. Jobs offered by the software industry have demonstrated the above factors as they are able to carry out the projects with persons of any background and levels of attainment, but with a few months training either prior to employment or a short training during probation.


Despite these deficiencies, students prefer software jobs mainly with an eye on the pay-package and urban locations. The employee- retention period even in good companies has been shrinking and is found to be three to six months. The companies also try to devise methods to make their employees almost captive with surety bonds, bank guarantees, employee's stock option (ESOP) and housing facilities, among others. The employees, for their part, resort to innovative methods to wriggle out of their contracts. There does not appear to be any respectable ethics even among companies as well as the employees in this type of free for all market. To go abroad and become rich has become the motive of most of the employees

even if the job does not offer any intellectual satisfaction. The manufacturing and hard-core engineering sector has also shrunk in terms of job opportunities and attractiveness. 3.0.7 Even those software professionals, who are offered good financial packages, spend their earnings on expensive lifestyles, vehicles, and credit card syndrome and find themselves disenchanted on all fronts including the intellectual front. It should also be a cause for concern to project beyond the present software boom as to what happens to all these if the opportunities decline. The scenario appears to be quite fluid with a predominant western bias in all the activities concerning software profession with scores of Indian boys getting lured and sucked into the vortices created by the opportunities in this area 3.1 3.1.1 MAIN PROBLEM AREAS The significant problem areas which may be contributing to the present scenario and can be addressed can be identified as given in the succeeding paragraphs. 3.1.2 Recruitment process :-Without going into the deficiencies of the present practices, the following suggestions are made to improve the process in terms of efficiency, availability of manpower and equity to all the aspirants irrespective of the fact where they got educated. The various steps of the proposed approach are as follows: i. Aptitude tests could be conducted by reputed institutes like IITs/ private organizations/HR agencies for prospective professionals preferably ``on-line'' like GRE, GMAT etc. or physically at regular intervals and scores are given. If it is no on-line, the periodicity can be a month or two and the validity can be for an year or so which can also be fixed based on general agreement.


Based on scores and preferences of the candidates (career counselling), companies can ask for a video clip for subsequent interview if required. Interviews can also be conducted simultaneously either physically or over the phone or by video conference and selections completed.


Once selected and the candidate joins the organizations, all member organizations should adopt a code of conduct such that the candidates stays at least for a period of one year.


Small companies can form some kind of a cooperative society wherein software professionals' services can be tapped and steer clear and manpower shortage (less than critical mass levels).


The selection can be conditional that he acquires certified skills in the required areas either through training in house or through approved training agencies and establishments. This will also avoid the unnecessary expenses for (which are high) the candidates, who are presently spending lot of money with a hope of employment. This will also ensure that there is a focus on proper training and optimal deployment of time, effort and finances.


The selection process can thus be continuous and commensurate with the requirements thus avoiding idle inventory.


There can be general norms of pay packages depending on the reputation of the companies (classifying them as A, B, C, D by any reputed management institute like IIM etc.) with the ratio of maximum pay within reasonable and realistic limits.


Post employment care:- The companies/organizations should take adequate interest in the career development of the employee by suitable HRD approaches which should include the following: i. Opportunities for creative work in the first phase particularly for those who are bright, and have an aptitude and come with a good pedigree say from IITs. ii. Opportunities to lessen the monotony and improve interpersonal relationship and mixing and group activities. iii. iv. v. vi. Periodic rotation of the rolls and jobs if possible. Opportunities for retraining and upgrading the skills. Conducting effective career development programs regularly. Incentives like ESOP, lucrative assignments and challenging projects, opportunities of higher education. vii. Make the employee more versatile with wider perspective and flexible for easy deployment in areas needing strengthening. viii. Encouraging simplicity and excellence. Advantages:- The suggested processes in 4 and 5 above can be expected to have the following significant advantages: i. ii. iii. Cost effective and efficient process. Proper deployment of skills optimally. Idle employment can be minimized.


iv. v.

Retention can be improved. Particularly useful for small firms which can also operate in the cooperative society mode.


The candidate's skills are moulded to suit the needs of the job and need not waste time, money and efforts.


Equitable opportunities to all aspirants irrespective of location, pedigree and background.

viii. ix.

Reduces the mushrooms of training shops with inadequate faculty. This may also give the manufacturing and core engineering sector jobs reasonable chance to attract willing and bright candidates.


The process is ideally suited for candidates to plan their careers with adequate preparation in core areas.


The process also enables a realistic assessments of needs and demands regularly and meeting them even at short notices.


The aptitude tests can become richer and more representative over a few years and as the question bank becomes larger and random on-line questioning can be introduced which is more objective like GRE, GMAT

3.2 3.2.1

LONG TERM PERSPECTIVE These tests can be conducted at the end of 10+2 level or B.Sc. level also and train the candidate with or without stipend in courses where he could get admission for his degree. This will help in decreasing the pressure on engineering education as

otherwise the skills acquired by the candidate at a great cost in branches other than computer sciences are wasted and lost for good if employed by the software industry. 3.2.2 It may be a good idea to have a National Test for Software Talent similar to science talent test which can be sponsored by NASSCOM and such other interested groups 3.2.3 The idea of forming a cooperative society by small firms may prove to be beneficial as the facilities and manpower can be shared optimally. While otherwise they may face the problems of lack of adequate manpower (below the critical mass level) because of less attractive pay and perks they are able to offer. 3.2.4 Renowned organizations like IITs, IIMs and MNCs, and can play a catalytic roll in streamlining the processes for an efficient HRD in this vital area of software manpower which is a national resource.


Employee Stock Ownership Plan(ESOP): is a defined contribution employee benefit plan that allows employees to become owners of stock in the company they work for.


How does ESOP work?


The ESOP operates through a trust, setup by the company, that accepts tax deductible contributions from the company to purchase company stock


The contributions made by the company are distributed to individual employee accounts within the trust.


The amount of stock each individual receives may vary according to pre-established formulas based on salary, service, or position.


The employees may ‘cash out’ after vesting in the program or when they leave the company. The amount they may cash out may depend on the vesting requirements.


Stock Options: The ‘right’ to purchase stock at a given price at some time in the future. Stock Options come in two types:


Incentive stock options (ISOs) in which the employee is able to defer taxation until the shares bought with the option are sold. The company does not receive a tax deduction for this type of option.


Nonqualified stock options (NSOs) in which the employee must pay income tax on the 'spread' between the value of the stock and the amount paid for the option. The company may receive a tax deduction on the 'spread'.


How do Stock options work? An option is created that specifies that the owner of the option may 'exercise' the 'right' to purchase a company’s stock at a certain price (the 'grant' price) by a certain (expiration) date in the future. Usually the price of the option (the 'grant' price) is set to the market price of the stock at the time the option was sold. If the underlying stock increases in value, the option becomes more

valuable. If the underlying stock decreases below the 'grant' price or stays the same in value as the 'grant' price, then the option becomes worthless.


Merit Pay is an incentive plan implemented on an institutional wide basis to give all employees an equal opportunity for consideration, regardless of funding source. The merit increase program is

implemented when funds are designated for that purpose by the institution's administration, dependent upon the availability of funds and other constraints. . 4.2.2
· · ·

Advantages OF Merit Pay :Allows the employer to differentiate pay given to high performers. Allows a differentiation between individual and company performance. Allows the employer to satisfactorily reward an employee for accomplishing a task that might not be repeated (such as

implementation of new systems).


Gainsharing is a technique that compensates workers based on

improvements in the company's productivity.


How does Gainsharing work? A Company shares productivity gains with the workforce. Workers voluntarily participate in management to accept responsibility for major reforms. This type of pay is based on factors directly under a worker’s control (i.e., productivity or costs). Gains are measured and distributions are made

frequently through a predetermined formula. Because this pay is only implemented when gains are achieved, gainsharing plans do not adversely affect company costs. 4.3.2
· ·

What are the 'Gains' that are measured?
Increases in production with equal or less effort. Equal levels of production with less effort.


What are examples of Gainsharing formulas?
Calculate gain in hours: The actual hours worked minus the expected hours (for the given level of output) equals the gain in hours.


Profit Sharing is an incentive based compensation program to award employees a percentage of the company's profits.


How does Profit sharing work? The company contributes a portion of its pretax profits to a pool that will be distributed among eligible employees. The amount distributed to each employee may be weighted by the employee's base salary so that employees with higher base salaries receive a slightly higher amount of the shared pool of profits. Generally this is done on an annual basis


How to Choose an Employee Stock Plan for Your Company:-Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan. And yet others say they'd like to have an employee ownership plan, but they're not sure what it might be. This article will start you down the path to choosing and implementing the plan or plans best suited to your company.


4.5.1 Let us begin by quickly reviewing the main possibilities for broad-based employee ownership. A "broad-based" plan is one in which most or all employees can participate. 4.5.2 An employee stock ownership plan (ESOP) is a type of tax-qualified employee benefit plan in which most or all of the assets are invested in stock of the employer. Like profit sharing and 401(k) plans, which are governed by many of the same laws, an ESOP generally must include at least all full-time employees meeting certain age and service requirements. Employees do not actually buy shares in an ESOP. Instead, the company contributes its own shares to the plan, contributes cash to buy its own stock (often from an existing owner), or, most commonly, has the plan borrow money to buy stock, with the company repaying the loan. All of these uses have significant tax benefits for the company, the employees, and the sellers. Employees gradually vest in their accounts and receive their benefits when they leave the company (although there may be distributions prior to that). Over 8 million employees in over 11,000 companies, mostly closely held, participate in ESOPs. 4.5.3 A stock option plan grants employees the right to buy company stock at a specified price during a specified period once the option has vested. So if an employee gets an option on 100 shares at $10 and the stock price goes up to $20, the employee can "exercise" the option and buy those 100 shares at $10 each, sell them on the market for $20 each, and pocket the difference. But if the stock price never rises above the option price, the employee will simply not exercise the

option. Stock options can be given to as few or as few employees as you wish. Perhaps 7 to 10 million or more employees in thousands of companies, both public and private, presently hold stock options. 4.5.4 An employee stock purchase plan (ESPP) is a little like a stock option plan. It gives employees the chance to buy stock, usually through payroll deductions over a 3- to 27-month "offering period." The price is usually discounted up to 15% from the market price. Frequently, employees can choose to buy stock at a discount from the lower of the price either at the beginning or the end of the ESPP offering period, which can increase the discount still further. As with a stock option, after acquiring the stock the employee can sell it for a quick profit or hold onto it for awhile. Unlike stock options, the discounted price built into most ESPPs means that employees can profit even if the stock price has gone down since the grant date. Companies usually set up ESPPs as tax-qualified "Section 423" plans, which means that almost all full-time employees with 2 years or more of service must be allowed to participate (although in practice, many choose not to). Many millions of employees, almost always in public companies, are in ESPPs. 4.5.5 Section 401(k) plan is a retirement plan that, unlike an ESOP, is designed to provide the employee with a diversified portfolio of investments. Like an ESOP, however, a 401(k) plan is a tax-qualified plan that generally must include all fulltime employees meeting age and service requirements. The employees can choose among several or more choices for investments, and the company may make a matching contribution. Perhaps several million employees in a few thousand companies participate in plans with a heavy company stock component; company stock may be an investment choice for the employees and/or the means by which the company makes matching contributions. 401(k) plans may be combined with

ESOPs (these are called "KSOPs"), where the company match is an ESOP contribution. 4.6 EMPLOYEE OWNERSHIP : COMPANIES PAY LESS FOR

WORKERS' COMPENSATION COSTS 4.6.1 A study has found that employee ownership companies have lower workers' compensation insurance rates than comparable non-employee ownership firms. Leslie Hakala authored the study. She began the project as an NCEO research intern and completed it for a thesis requirement at Harvard University. The study was unable to ascribe a specific causal relationship between employee ownership and lower workers' compensation costs, but it did find that these costs declined as employee ownership plans matured.


Background:- In 1989, the last year for which we have data, U.S. employers spent over $48 billion on workers' compensation costs. These costs grew at 16.9% per year in the mid-1980s. Cost increases were partly attributable to increased benefits mandated by state workers' compensation insurance reforms. At the same time, as employer provided health care coverage has declined, more employees sought to cover health problems under workers' compensation. Many people believe there has been increased fraud as well.


Workers' compensation programs vary from state to state, but in most programs, insurers attempt to provide employers with an incentive to limit safety problems by developing an experience rating. The ratings compare an individual firm's experience with other firms of its type. If the rating is better than average, insurance premiums will be lower; if it is worse, they will go up.


In this study, we looked only at California firms. In California, employers are assigned a "manual rate," an insurance rate expressed as a percentage of every $100 of payroll. Rates are assigned to all companies based on their industry classification. These rates are then adjusted for companies with a premium above a certain level according to their actual experience. This means smaller and less risky firms are not assigned an experience modification rating. The experience modification rate is set for each year based on three years of past experience, excluding the most recent year (because data are generally not yet available). The experience modification rate is determined by looking at actual experience modified by a size weighting factor. For larger firms, the adjustment may be very small; for smaller firms, actual experience is given a lower weight because a single incident can skew results dramatically. This weighted experience rating now becomes the "experience modification" figure.


Theoretically, the average experience modification factor for any business classification should be 100%. A company with a good record would have a rating under 100%; a bad record would rate higher. These numbers are then multiplied by the manual rate to set the premium. In practice, the average rating is somewhat under 100.


4.7.1 Will I ever get to exercise my stock options? It's the one question haunting IT industry professionals sitting on piles of employee stock options. All those who happily grabbed at ESOP's issued by their

companies last year, have now been left holding pieces of paper that are, in some cases, worth a fraction of the price at which employees brought into them. Except for a few who have benefitted from older schemes like Infosys 1994 scheme, the great ESOPs dream is turning out to be a nightmare. Last year, if you were given ESOPs in an IT company, your friends, neighbours and everyone else went up like a blimp, companies issued ESOPs in cartloads. And employees brought into them, even at the higher prices that the grants came from. 4.7.2 According to a study carried out by Nasscom , there were more than 10,000 IT staff last year holding around 18 million ESOPs valued at roughly Rs 12,000 crore($3 billion) at February '00 prices. But all this was merely on paper. 4.7.3 A year later, the situation's something like this. Employees who were given ESOPs at the prices prevailing during the IT boom, had to sit back and watch their share prices hit the roof while they waited out the lock-in period. Now, they can exercise their options that is sell them, and pocket the difference between the exercise price at the time of the grant, and the current market price. It's resulted in a situation where employees have been left holding NIIT options which they would have to exercise at a price of Rs 1,593 or Silverline options, which they would have to exercise at a price of $25. At VisualSoft, for instance, all employees who were granted options have returned them to the company.

Consequently, the company has terminated the ESOP scheme. 4.7.4 Theoretically, an employee who exercised his option now, would have to buy at the exercise price, sell at the current market price, and pay out the difference.


ESOPs HARDLY BENEFICIAL At the height of the IT euphoria in the markets, those employees saw their company's scrips scaling new heights, they could not benefit as the ESOP's had 1-2 year lock-in periods, and could not be sold. The lockin period, also known as the vesting period in industry jargon, in the period during which the employee cannot convert his or her option into shares. To make matters worse, some companies has specified that the option had to be exercised, that is converted into shares, within a specified time frame after the lockin period expired. For instance, this was one year in the case of Silverline, and 10 in the case of Aptech. Table 4.1 ESOP IN INDIAN CONTEXT Recent ESOPs Plan Exercise Plans (Rs) 1,593 425 245* 289 555 2,397 6,249 NA 480

No of Shares (Lakh) NIIT Silverline Patni HCL Infosys SSI Wipro Infosys VisualSoft Polaris 18.1 10.0 5.5 30.2 1.5 3.5 19.6 0.2 8.5

Vesting Period (Yrs) 1 1.5-3.5 1 NA 3 1-2 5 1 5

Current Price (Rs) 162 41 54 72 164 1,485 3,532 116 120

Aug '04 Nov '04 Dec '04 Aug '04 Sep '04 Oct '04 Oct '04 Aug '04 Aug '04






Employee stock purchase plans (ESPPs) include both tax-qualified "423 plans," which about 2,400 companies offer, and nonqualified plans, which about 1,500 companies offer. Our estimates are based on data from ShareData's Equity Compensation Trends in America (1991), Hewitt Associates' On Employee Stock Ownership (1996), Hewitt Associates' Survey Findings: Employee Stock Purchase Plans (1998), and the National Association for Stock Plan Professionals' Stock Plan Design and Administration Survey (1998), especially the more recent studies. To estimate the number of employees covered under the plans, we took the total number of companies offering plans, multiplied those numbers by the average number of employees in the companies (13,207 for 423 plans and 17,790 for nonqualified plans), and multiplied that number by the average percentage of participation in the plans (34% for 423 plans and 17% for nonqualified ESPPs). Almost all companies with ESPPs are public.


Multiple Plans: Many companies offer multiple e plans, and many employees participate in more than one plan. For example, many ESPP participants are also in 401(k), stock option, or other equity compensation plans. Hence, the total number of participants in all these plans is definitely not the total of the numbers in the "Number of participants" column.


4.10.1. A 2000 study by Joseph Blasi and Douglas Kruse at Rutgers Univerity found that ESOP companies grow 2.3% to 2.4% faster than would have been expected without an ESOP for sales, employment, and sales per employee. The study looked at all ESOP plans set up between 1988 and 1994 for which data was available. A 1987 NCEO study of 45 ESOP and 225 non-ESOP companies found that

companies that combine employee ownership with a participative management style grow 8% to 11% per year faster than they would otherwise have been expected to grow based on how they had performed before these plans. 4.10.2 Subsequent studies by the General Accounting Office and by academics in Washington State and New York found the same relationship. A 1999 study for Hewitt Associates by Hamid Mehran of Northwestern University found that the returns on assets for 382 publicly traded ESOP companies was 2.7% per year greater than what a model of their predicted performance would have been. 4.10.3 Studies on participative management alone find a small positive impact on performance, but not nearly enough to explain the synergy between ownership and participation these other studies have found.




HR management gets best out of its employees to meet the organisation's goals. And employees are the best judge of the HR policies of any organisations. IT sector is fastly growing industry in India and HR requirements of Indian IT Industry are quit different from traditional industrial sectors.., A major characteristic of modern

socio-economic development has been the increasingly dominant role of service sector .and IT belongs to service sector. So, its HR needs must also be properly identified.. 5.0.2 Indian IT sector is contributing a large in employment and foreign exchange. A developing country like India can ill afford continued conflict ridden; rigid and litigation oriented Industrial Relations. What employees perceive about the emerging HR trends of the IT organisations has been measured. 5.0.3 To measure the success and failures of emerging HR trends of Indian IT Industry a structured questionnaire was designed for this purpose. The questionnaire included both open ended and close ended questions. The questionnaire used is placed at Appendix "I". The procedure adopted for data collection was interview with the employees randomly selected from IT organisations to the extent possible and also through mail. . The responses given by the respondents were recorded on the questionnaire. The views expressed by the respondents has been analysed in the succeeding paragraphs. About 100 respondents were selected by convenient random sampling technique.


The main features of the employees randomly selected sex-wise, education-wise and type of functions wise has been provided here in the succeeding paras. The 54 per cent of the respondents were Male and 46 per cent of the respondents were Female


IT industry requires higher level of education standards, both non-technical and technical. The education qualification wise distribution of the employees who agreed for responding to our questionnaire has been given below in Table 5.1.

Table 5.1 RESPONDENTS PROFILE - EDUCATION-WISE (%age) Respondents' Qualification Non-Tech Graduate and Below Non-Tech Post Graduate B.Tech/ BCA etc. M.Tech/MCA Etc. TOTAL

Percentage Of Respondents 11% 23% 34% 32% 100%

In the similar fashion the job wise profile of the respondents has also been compiled and the same is tabulated below in the Figure 5.2. As per Figure the IT industry is dominated by the software professionals And next computer hardware and marketing services of IT are sharing the other half. Only 13 percent are working in HR and Personnel Management area. Hence, the HR needs of IT industry must look after the software professionals at priority.




Through the Question No.2 of the questionnaire the respondents were asked to comment whether the HR needs of Indian IT industry are different from traditional HR Management systems. It was a direct question in Yes/NO/No comments format and IT professionals selected for survey were asked to tick one of the choices as mentioned. The responses have been tabulated in Table 5.3. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT

industry has to keep this into mind. Being highly educated employees are very sensitive in pride and behaviour.

TABLE-5.3 Emerging HR TRENDS OF INDIAN IT INDUSTRY ARE DIFFERENT (%age) Respondents' Observation Yes No Can not say TOTAL Percentage Of Respondents 69% 23% 08% 100%


The IT industry has been devising newer compensation methods like Profit Sharing/ Stock Options etc. to increase employee welfare and retentively. Whether these new compensation techniques are positively effecting or not

was the key point in our next question. As per Figure-5.4, 46% of the employees opined that newer compensation methods has a positive effect in IT industry while 19% said that it has a negative effect on employee welfare. 26% view that it has no major effect and 9 percent has replied in CAN NOT SAY. . In the initial stages when IT Industry was sunrise it was mostly welcomed by the employees and when IT industry share prices has gone down. It has a negative effect..

5.4.1 In has been found that in many organisations the management ignores the employees welfare for their profit sake and does not give proper attention towards employees career and prospects. What is the state of affairs in IT Industry in India was quizzed from our valued learned respondents. The respondents views are given below Table 5.5. The results are mixed one. While 48% of the respondents' replied in negative and 43% gave a positive reply. So, there is a profit motive operating more than employees proper welfare management in Indian IT Industry.


Respondents' Observation Yes No No comments TOTAL

Percentage Of Respondents 43% 48% 09% 100%




The respondents responses to the status of grievances handling mechanism was through an indirect approach. In the Question No. 5 of the questionnaire the respondents were to comment upon the positive hypothesis that grievance handling is done properly in the IT organisation. The five choices provided were strongly agree, agree, no comments, disagree and strongly disagree. The data collected is given below in Table-5.6. TABLE - 5.6

GRIEVANCE HANDLING IN INDIAN IT INDUSTRY IS PROPER (%age) Respondents' Observation Strongly Agree Agree No Comments Disagree Strongly Disagree TOTAL Percentage Of Respondents 12% 39% 14% 26% 09% 100%


Only 12 respondents strongly agree to the statement and similarly a small number of 9 respondents strongly disagreed with this. Only 14 percent have nothing to comment. 39 percent agree that The grievance handling IN Indian IT industry is done properly and remaining 26 percent disagree with it.


Whether top management awareness about working conditions of the employees and state of working conditions in the organisation was measured through next question. Table-5.7 shows the response. 65% of the respondents view that the top management's are not aware or little aware about the employees working conditions in the IT organisations Only 6 percent vouched that top management is very well aware about the nature of working conditions and 18 percent say "Much Aware".

Table 5.7 TOP MANAGEMENT AWARENESS (%age) Respondents' Observation Not at all aware Very little aware Some what aware Much aware Very much aware TOTAL Percentage Of Respondents 20% 45% 11% 18% 06% 100%




Cordial employee employer relationship is very essential in the upcoming highly competitive economy. The state of employee employer relationship in Indian IT Industry was measured through the next question. The state of employee-employer relationship is not very encouraging.

Table 5.8 STATE OF EMPLOYEE EMPLOYER RELATIONSHIP IN IT INDUSTRY (%age) Respondents Grading Excellent Very Good Satisfactory Poor TOTAL

Percentage Of Respondents 14% 44% 28% 14% 100%

58 percent of the respondents has graded it very good and above. While 42 percent consider it satisfactory and below. The employment of modern technology requires more positive and effective relationship between management and the employees. Indian IT Industry has very effective employee employer relationship.




The most of the employees of IT sector are highly educated and sensitive in nature.
Moreover, the opportunities outside are very attractive, Whether Indian IT Industry is able to retain its employees was the next opinion query from the randomly selected IT industry employees. Their opinions in this regard are presented below in "YES/NO/NO COMMENTS" format in the Figure 5.9.


61% of the employees view that Indian IT companies are unable to retain its employees due to most attractive avenues outside. Only 23% viewed that they are able to retain the employees.




As has been observed in general and also concluded in previous paras that the IT sector employees in India are very quickly jumping the employment. So, what the employers has to do for retaining its professionals was asked from the respondents. Few suggestions were listed and one column was open ended to express their any other suggestion. The Table 5.10 list outs all the suggestions. I

TABLE- 5.10


Increase wages to international levels Increase foreign postings Increase profit sharing More promotions Others TOTAL

22% 36% 10% 11% 21% 100% (%age)


A 22% of the respondents has suggested to increase the wages to international level to increase employees retentively in Indian IT industry. 36% want more foreign postings, 10% suggest increase profit sharing and 11% suggested more promotions. 21% of the other suggestions included lateral induction from lower the institutes and better HR management.




"Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour to whether as a Laws/Rules should be designed for IT Industry:. This hypothesis was presented to the respondents. They were to respond upto which extent they agree or disagree. The employees responses have been tabulated below in the Table 5.11. The comfortable majority of respondents (89%) strongly agree or agree with the hypothesis that Indian IT sector requires separate labour management system/ regulations. While only minority of 13% has given divergent views. Low


INDIAN IT INDUSTRY REQUIRE SEPARATE LABOUR LAWS/ RULES (%age) Respondents' Observation Strongly Agree Agree No Comments Disagree Strongly Disagree TOTAL Percentage Of Respondents 57 % 32 % 02% 07% 02% 100%




Whether IT industry can afford old traditional trade union methods of agitations like Strike or Gherao etc. was also asked from the employees. The question was direct in nature of Yes or No. As has been listed in Figure 5.12 below, 67% of the respondents has given their reply in No and 28% answered in affirmative. 5% has ticked No Comments choice. So, it is concluded that old agitational techniques of trade unions are not desired in IT industry.




Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector The respondents opinion is tabulated below in Table 5.13. The table above clearly indicates that excessive competition is observed as harmful to the employees prospects. . 53 percent of the respondents has replied in Yes to this question. While 35% has a negative viewpoint.

TABLE - 5.13 EXCESSIVE COMPETITION IS HARMING EMPLOYEES LONG TERM WELFARE (%age) Respondents' Observation Yes No No Comments TOTAL Percentage Of Respondents 53% 35% 12% 100%

5.13 5.13.1

The respondents were asked to comment upon whether Indian IT Industry needs a trade union or management's are looking after the employees interest in the best possible manner. The Table 5.14 shows the responses in this regard.

Table 5.14 ROLE OF TRADE UNION IN IT INDUSTRY (%age) Respondents Grading No Trade Union Single Trade Union Multi Trade Union Percentage Of Respondents 21% 13% 09%

Only welfare association Total 5.13.2

57% 100%

The largest 57 percent of the respondents view that there should be only welfare association in Indian IT industry. 21% need no trade union and 13% like single trade union only.. 9 percent of the respondents opted for multi trade union.







5.14.1 In the end respondents were asked to give their overall assessment/ grading of
emerging HR trends in Indian IT Industry. The overall assessment on five point scales of excellent, very good, good, satisfactory and poor is tabulated below in the Table 5.15. 65% of the respondents were in positive grading of excellent, very good and good. While 35% gave a assessment of satisfactory and poor CHAPTER - 6 SUMMARY AND CONCLUSION



6.0.1 The era of skill-based workers has arrived but if India wants to truly move to the global arena, it has to spruce up its workforce. Small may be beautiful, but not in the IT industry. In the knowledge era and a skill-based economy, it has become imperative that human resources become one of the most essential ingredients of success. The growth of IT companies worldwide depends on its people and the intellectual capital it possesses. 6.0.2 ‘Knowledge workers’ has become a buzzword in today’s IT scenario. And if we look at the top software exporters, they have been growing phenomenally in workforce strength. To make it big in the global software market, India needs to increase its mass of knowledge workers. The establishment of Indian Institutes of Information Technology is definitely a step ahead in the right direction, but what the industry needs is experts in niche areas, in other words, persons with domain expertise. In the era of cutting-edge technologies, it is this skilled workforce that will make all the difference.

6.0.3 The total human resource strength of the IT industry as a whole stands at 425,609. A company-wise break-up of this figure reveals that nearly 525 companies constituting 35% of the IT industry employ an average of 58 persons each, 750 companies constituting 50% of the industry employ an average of 275 persons each, and 150 companies constituting 10% of the industry employ an average of 726 persons each. At least 40 companies have more than 1,000 employees, while some very big companies like TCS, Wipro, HCL and Infosys have staffs above 5,000 each. 6.0.4 Despite having abundant English-speaking skilled workforce, an acute shortage of skilled workforce will affect the country’s software exports in the long run, if remedial actions are not taken immediately. 6.0.5 Geometrical growth of Information Technology in the world as well as India, has created lot of revenues for government and number of avenues for employees. The introduction of computers has changed the way of life every where, including work places and our homes. The life has become quite fast and speed of provisioning of different services has also increased. But all this activities are being managed by number of well qualified professionals. They may be from computer hardware developers, software engineers or marketing managers. As the things are running fast, so they have to be managed fast. 6.0.6 These fastness of services and higher level of education/training standards are not easy to manage by the organisations concerned. As we already know that Human Resource Management of the organisation deals with the individuals putting their hardwork to meet the organisations goals. Managing people is the toughest element of any organisation than land, machinery or finances. Every human beings has its own degree of preferences, likings and attitude. So, HR managers has to take care of all these things in mind while dealing with the number of people working in the organisation. 6.0.7 Different type of employees/workers recruited for different level of working has to be managed in different styles. The hundreds years of organisational management experience has been converted into a standard personnel management and industry and service organisations are following these HR techniques for their organisational management. Due to availability of written down procedures and rules by the learned managers, it was felt that HR managing was not so typical. 6.0.8 But, emerging HR trends of Information Technology industry can not be managed properly by the old traditional HR techniques . As it is commonly known that man learns by experience. 50 years of introduction of computers has provided us the areas to be additionally addressed by the HR managers in IT sector. Indian IT industry is not an exception. Moreover, due to existence of old conservative .and protective labour laws it is not possible to meet the ever-growing international competition in the IT services. 6.0.9 Hence, the IT industry has been devising newer Personnel Management/ HR techniques which specifically meet the needs of IT industry. The main reason for this is high standards of education and professional training required for this industry. Secondly, there is excessive job demands for developed countries in this sector and high wage standards. So, HR managers mainly in developing countries like India find it very difficult to retain and recruit their manpower. HR

managers worldwide has devised handsome compensation methods like Profit Sharing, Employee Stock Option Schemes ESOP etc. Though over the period few schemes has flopped like ESOP due to heavy fall in company share prices. 6.1 RESPONDENTS OBSERVATIONS 6.1.1 As given out in Chapter 1, the employees opinion survey regarding status of HR management in Indian IT Industry and success of emerging HR trends was conducted through the use of a structured questionnaire. The survey was conducted by randomly selecting 100 persons working in Indian IT Industry. The respondents observations in this respect are described in brief in the following paragraphs 6.1.2 The 54% of the were Male and 46 per cent of the respondents were Female. It was observed that IT industry is dominated by the software professionals (46%), computer hardware and marketing services of IT are sharing the other half. 6.1.3 The respondents were asked to comment whether the HR needs of Indian IT industry are different from traditional HR Management systems.. The majority of respondents (69%) view that HR needs of IT industry are different from old economy sector and HR managers in IT industry has to keep this into mind. 6.1.4 The IT industry has been devising newer compensation methods like Profit Sharing/ Stock Options etc. to increase employee welfare and receptivity. 46% of the employees opined that newer compensation methods has a positive effect in IT industry while 26% said that it has a negative effect on employee welfare. 6.1.5 As per 48% of the respondents IT organisation has more concern for profit motive than employees welfare. While 43% were not agree to this proposition 6.1.6 51 percent of the respondents strongly agree/agree to the statement that grievance are handled properly in the Indian IT industry. While 33% think otherwise. 6.1.7 Whether top management awareness about working conditions of the employees and state of working conditions in the IT organisations, 65% of the respondents view that the top management's are not aware or little aware about the employees working conditions in the IT organisations . Only 4 percent vouched that top management is very well aware about the nature of working conditions and 16 percent say "Much Aware". 6.1.8 Cordial employee employer relationship is very essential in the upcoming highly competitive economy. The state of employee employer relationship in Indian IT Industry was measured through the next question. The state of employee-employer relationship is very encouraging. 58 percent of the respondents has graded it very good and above. While 42 percent consider it satisfactory and below. 6.1.9 Whether Indian IT Industry is able to retain its employees was the a query from the randomly from IT industry employees. 61% of the employees view that Indian IT companies are unable to

retain its employees due to most attractive avenues outside . 22% of the respondents has suggested to increase the wages to international level to increase employees retentivity in Indian IT industry. 36% want more foreign postings, 10% suggest increase profit sharing and 11% suggested more promotions. 21% of the other suggestions included lateral induction directly institutions and better HR management. 6.1.10 Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour Laws/Rules should be designed for IT Industry:. This hypothesis was presented to the respondents. The majority of respondents (89%) strongly agree or agree with the hypothesis that Indian IT sector requires separate labour management system/ regulations. While only minority of 11% has given divergent views. Further, 67% of the respondents has opined that old agitational techniques of trade unions are not desired in IT industry. 6.1.11 Whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector . 53 percent of the respondents has replied in Yes to this question. While 35 percent has a negative viewpoint.. 6.1.9 The largest 57 percent of the respondents view that there should be only welfare association in Indian IT industry. 21% need no trade union and 13% like single trade union only.. 9 percent of the respondents opted for multi trade union. 6.1.10 In the end respondents were asked to give their overall assessment/ grading of emerging trends of Indian IT industry. The overall assessment on five point scales of excellent, very good, good, satisfactory and poor. 65% of the respondents were in positive grading of excellent, very good and good. While 35% gave a assessment of satisfactory and poor 6.2 CONCLUSION 6.2.1 Hence, it can be concluded that Emerging HR trends of Indian It industry are quite different from the old economy industry. India is considered one of Super Power in Information Technology and allied fields. Majority of world leaders in IT sector are outsourcing their requirements from Indian IT Industry and recruiting Indian IT professionals. Hence, the Indian Government must allow the Industry to meet international competition and desired environment in respect of Labour Laws and financial rules must be liberalized for this Indian IT Industry. Moreover, HR managers in Indian IT Industry must keep the sensitive nature of IT professionals and state of greater opportunities outside in mind for devising HR policies for their organisations China is also entering this area vigorously and Government of India must help Indian It industry to meet this challenge. APPENDIX "I" QUESTIONNAIRE FOR PROJECT STUDY ON EMERGING HR TRENDS

IN INDIAN IT INDUSTRY Dear Sir/Madam, I am a management student of Fore School of Management. As part of course I a undertaking this project study. I would a request you to kindly answer a few questions. This questionnaire gives you the opportunity to express your opinion regarding various aspects of emerging HR trends in Indian a new IT Sector. As a a you are all aware that Information Technology (IT) industry is achieving a great success in Indian employment context. As you are to a part of IT industry and must be observing that the HR trends of IT sector are quite different from the conventional old economy sectors. The results shall be submitted to the university in the report format for the usage of researchers and other concerned authorities. As is the case for entire study, no individual will be identified. Only group averages will be reported. Thanking You Date ..... Personal Profile of the Respondent 1. (a) Place of survey..................................

(b) Name............................................. (c) Address........................................... (d) Male/Female....................................... (e) Educational qualifications: (i) Non Tech Graduate or below (ii) Non-Tech Post-Graduate (iii) B.Tech/BCA etc. (iv) M.Tech/MCA/MBA (f) Your Nature of Job: (i) Computer Hardware (ii) Computer Software

(iii) Marketing Services of IT (iv) HR/ Personnel management 2. Whether you feel that HR needs of Indian IT sector are different from old HR practices.(Please Tick) (i) Yes (ii) No (iii) Can Not Say 3. Whether new compensating methods being adopted by the various IT companies are positively effecting the employees welfare? (i) Positive Effect (ii) Negative Effect (iii) No Effect (iv) Can Not Say 4. "Indian IT sector companies has a positive attitude towards its employees and are not neglecting their welfare and prospects for their profit sake." Do you agree with the statement. (i) Yes (ii) No (iii) No Comments 5 "The grievances of the employees in Indian IT sectors are handled properly". To what extent do you with this statement. (i) Strongly Agree (ii) Agree (iii)No Comments (iv) Disagree (v) Strongly Disagree

6. How much do you think the top management of your organisation is aware of the working conditions of its employees? (i) Not at all aware (ii) Very little aware (iii) Somewhat aware (iv) Much aware (v) Very much aware 7. What is the state of employee employer relationship in Your Organisation (i) Excellent (ii) Very Good (iii) Satisfactory (iv) Poor 8. The most of the employees of Indian IT sector or highly educated and sensitive in nature. Moreover, the opportunities outside are very attractive, Whether Indian IT Industry is able to retain its employees.(Please Tick) (i) Yes (ii) No (iii) Comments 9. What the HR managers of Indian IT sector should do to increase the retentivity rate of its employees (Please Tick) (i) Increase wages to international level ii) Increase foreign postings iii) Increase profit sharing (iv) More promotions (v) Any other(please specify) __________________________

10. "Existing Indian labour Laws/Rules are not strictly applicable to Indian IT Industry as IT sector employees are quite different from general factory workers and are well educated and trained. The separate Labour Laws/Rules should be designed for IT Industry:. Do you agree with this proposition. (i) Strongly Agree (ii) Agree iii) No Comments (iv) Disagree (v) Strongly Disagree 11. Whether old methods of employees association/trade union like strike or Gherao etc. are desirable in Indian IT Sector (Please Tick) (i) Yes (ii) No (iii) No Comments 12. In your view whether excessive competition in Indian IT sector is harming the overall long term prospects of employees in this sector. (i) Yes (ii) No (iii) No Comments 13. Whether do you feel there is any roll of trade union in the IT Industry? (i) No Trade Union (ii) Single Union (iii) Multi Union (iv) Only welfare association (iv) Can not say 14. Give your overall assessment of HR Management in Indian It Industry.

(i) Excellent (ii) Very Good (iii) Good (iii) Satisfactory (iv) Poor 15. Please give your comments and suggestions to bring further improvement in HR Management in Indian IT Industry. Thank You,

1. Burack, E.R. & Mc. Nicholos, T.J. Human Research Planning: Technology, Policy and & Change, The Comparative Administration Research Institute of the Centre for Business and Economic Research, College of Business Administration, Kent State University, 1973. 2. Coch, Lester and John R.P. French, "Overcoming Resistance to Change," Human relations, Vol. I, 1948, pp. 512-532.3. Douglas, Paul.H. & Aaron, Director. The Problem of Unemployment, Macmillan, N.Y. 1931. 3. Edwards, John, "Manpower Planning", John Wiley, New York..,1983 4. Gelden, P Stevan," Report Writing for Business and Industry", Business Communication Service. 5. Kothari, CR." research Methodology Methods and tech- niques", Wiley Eastern Limited. 6. Lawler III, Edward E., "Control Systems in Organizations," In Handbook of Industrial and Organizational Psychology, (Rand-Menally, 1976). 7. Mustafi, CK 1981. "Statistical Methods in Managerial Decisions, Macmillon New Delhi. 8. Pareek, U and T.V.Rao, 1981, "Designing and Managing Human Resource Systems", Oxford and IBH Publishing Co., New Delhi. 9. Ramaswamy, E.A. & Uma Ramaswam. "Industry and Labour", Oxford Press: New Delhi, 1981.

10. Rao, T.V. and Abraham, E.A.," A Survey of HRD Practices in Indian Industry, in Rao, T.V. and Pereira, D.F., Recent Experiences in HRD, New Delhi, Oxford & IBH, 1985. 11. Robertson, J. "Structure and Employment Prospects of the Service Industries", Department of Employment, Australia, 1982. 12. Shadecor George W, " Statistical Methods" The IOWA State University Press, AMES, IOWA, USA (6th edition) 13. Silvera, D.M., "Human Resource Development", 1988, The Indian Experience.Higher Education and IT: 14. Ehrmann, Stephen C. "Reaching Students, Reaching Resources: Using Technologies to Open the College." _Academic Computing_, April 1990, pp. 10-34. 15. Penrod,James I., and Michael G. Dolence"Concepts for engineering Higher Education." _CAUSE/EFFECT_, Summer 1991, 16. 5 Mark J. Wallace, Jr., "Rewards and Renewal: Competitive Advantage through Workforce Effectiveness," Paper presented at American Compensation Association National Conference, Anaheim, California, 1993. 17. Helen Murlis and David Fitt, "Job Evaluation in a Changing World," _Personnel Management, May 1991, pp. 39-43.


Recruitment and Selection Process
of ICICI Life Insurance Company Ltd.
(A Project Report Survey at Hisar City) Submitted in the partial fulfillment for the award of the degree of Master of Business Administration

CERTIFICATE This is to certify that this Project Report entitled ‘Recruitment & Selection Process of ICICI Life Insurance Company Ltd.’ is the result of research work carried out by Mr. __________ under the guidance and supervision of Professor _______________________. Signature

Recruitment and selection of Insurance Companies PREFACE People are a company’s most important assets. They can make or break the fortunes of a business. In today’s highly competitive business environment placing the right people in the right position is very critical for the success of any organization.

The recruitment and selection decision is of prime importance as it is the vehicle for obtaining the best possible person-to-job fit that will, contribute significantly towards the Company's effectiveness. It is also becoming increasingly important, as the Company evolves and changes, that new recruits show a willingness to learn, adaptability and ability to work as part of a team. The Recruitment & Selection procedure ensures that these criteria are addressed In this project I have studied Recruitment and Selection process of ICICI Prudential Life Insurance and attempted to provide some ways so as to make recruitment more effective and to reduce the cost of hiring an employee. I am privileged to be one of the students who got an opportunity to do my training with ICICI Prudential Life Insurance. My involvement in the project has been very challenging and has provided me a platform to leverage my potential in the most constructive way. ICICI Prudential Life insurance is one of India's leading financial institutions offering complete financial solutions that encompass every sphere of life. In a short span of time,ICICI has set an example by having a steady and confident journey to growth and success. During the training period I have studied deeply the process of hiring in ICICI Prudential Life insurance and did a SWOT analysis of ICICI Prudential Life Insurance to find out the existing shortcomings and potential threats and thereby recommended suggestions.

This project however is an attempt to share as best as possible my experience in corporate world with all my colleagues and my faculty. I would be delighted to receive reader’s comments which maybe valuable lessons for my future projects. EXECUTIVE SUMMARY In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. The Financial market has been witnessing growth which is manifold for last few years. Many private players have entered the economy thereby increasing the level of competition. In the competitive scenario it has become a challenge for each company to adopt practices that would help the organization stand out in the market. The competitiveness of a company of an organization is measured through the quality of products and services offered to customers that are unique from others. Thus the best services offered to the consumers are result of the genius brains working behind them. Human Resource in this regard has become an important function in any organization. All practices of marketing and finances can be easily emulated but the capability, the skills and talent of a person cannot be emulated. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Therefore a recruitment practice in an organization must be effective and efficient in attracting the best manpower.

Coverage –The extent and limitation With largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. Its business is growing at 15-20% annually and presently is of the order of Rs. 450m. Together with banking sector it adds about 7% to the GDP. Like in the case of BPO’s, Insurance sector too faces the problem of attrition. Thus, recruitment is an ongoing process carried through out the year. The project is based on the study of recruitment process. The various recommendations suggested have been the result of the study. The idea is to generate ways of dealing with high attrition and making hiring process manageable and efficient.

Data Used There were mainly two sources of data collection Ø Ø Ø Ø v Ø Ø Ø Primary data: Survey method Personal interview with candidates In depth conversation with the placement agency Secondary data: Study of recruitment policy Websites Published articles

Research methodology used


Study of recruitment and selection at ICICI Prudential Life Insurance by the manual provided by the HR department; Web sites Journals Magazines Books

v v v v

Findings v Recruitment is done throughout the year more during the months of May-June and Oct-Nov; Huge investment of time; Huge recruitment cost;

v v

To pursue these, I would be going through the recruitment policies of the company. By active participation in the recruitment process, the areas where improvement can be bought about can be identified. Thus the whole research would be done under the guidance of external guide. It will also involve recruitment and selection processes, reading the material provide internally by the organization, information from the new employees.

Introduction 1.1 Introduction Of The Insurance Industry

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. 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. 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. 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 nationalized. 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. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. Present Scenario The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 14 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies.. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19

percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans.

Major Insurance Players Licenses have been issued for the following companies Ø Ø Ø Ø Ø Ø Ø Ø ICICI Prudential Life Insurance Limited ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited SBI – Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited


Bajaj Allianz Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited AMP Sanmar Life Insurance Company Limited Sahara India Life Insurance Limited Sri Ram Life Insurance Limited

Protection of the interests of policyholders: IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps: v IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. v The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. v It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.


All insurers are required to set up proper grievance redress machinery in their head office and at their other offices.

The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract. 1.2 COMPANY PROFILE ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in UK. ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal. India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's

foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. FACT SHEET THE COMPANY ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the first quarter ended June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new business premiums and wrote over 450,000 retail policies in the period. The company has assets held to the tune of over Rs. 18,400 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear

assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors. The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Cooperative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Cooperative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited. Products Insurance Solutions For Individuals ICICI Prudential Life Insurance offers a range of innovative, customercentric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policy holder. Savings Solutions
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Save’n’Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.

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LifeTimeSuper offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options — Preserver, Protector, Balancer and Maximiser. LifeLink Super is a single premium Unit Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life Gold is a limited premium paying plan that offers customers life insurance cover till the age of 75. InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation. InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.


Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options – level term assurance, level term assurance with return of premium and single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans · SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. SmartKid plans are also available in unit-linked form – both single premium and regular premium.

Education Insurance Plans · Education insurance under the guaranteed educational benefits insurance cover for the parent who policy is designed to provide money SmartKid brand provides to a child along with life purchases the policy. The at important milestones in

the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium Retirement Solutions
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ForeverLife is a retirement product targeted at individuals in their thirties. Market-linked retirement products LifeTime Super Pension is a regular premium market-linked pension plan. Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

Health Solution

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Diabetes Care and Diabetes Care Plus*: 1st ever critical illness insurance cover for diabetics. Hospital Care*: Hospital Care offers a Cashless hospitalization facility in more then 3000 network hospitals Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death


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Note (*) products Re-launched on 1st July 2006 Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. 1. Accident Benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Accident & Disability Benefit: This rider option pays 10% the sum assured under the rider every year till next 10 years on Accidental Permanent Disability of 2 Organs. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.




Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmarKid, SecurePlus and CashPlus


Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus. Choice of Six Investment Options :ICICI prudential offers you the opportunity of selecting between investment options to match your investment priorities. 1) Protector:-

An Investment Option with investment indebt and money market instruments. 2) Maximiser :-

An investment option with investment in equity and equity related instruments. 3) Balancer :An investment option with investment in a mix of equity and debt oriented instruments. 4) Preserver :-

An investment option with investment in low-risk instruments like cash and call money markets. 5) Flexi Growth:New Fund (NFO) launched in March 2007, Long term returns from an equity portfolio lare,mid and small cap companies. 6) Flexi balanced:-

Balance of capital appreciation and stable returns from an equity (large,mid & small cap companies) & debt portfolio.

Vision and Mission Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include: · · · Understanding the needs of customers and offering them superior products and service Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their employees

And above all building transparency in all our dealings. They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that tere will be no limits to their growth. DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 150 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south. The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as over 300 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers RegisteredOffice : ICICI Towers 9thfloor, Bandra-Kurla Complex Mumbai - 400 051. Tel: 494 3232 Regional Office : 8th floor EROS Coorporate Tower,Nehru place, New Delhi-110011.Tel:46554405 Delhi office : 3rd floor Videocon Towers E-1, Rani Jhansi Road New Delhi - 110055. Tel: 601 3232 ICICI Prudential Life Insurance opens office in Dubai In a move to consolidate its position in the Gulf region, ICICI Prudential Life Insurance (ICICI Prudential), India's No. 1 private life insurance company, today opened its representative office in Dubai, becoming the first private life insurer from India to open an office in the Emirate.

At ICICI Prudential we offer pragmatic, world-class solutions. Put simply, solutions with a lot of common sense. Solutions that take care of your four basic financial needs - Earning, Saving, Investing and Spending. So you live your life to the fullest, sans worries.

Project Report Recruitment-Selection Process Insurance Companies

Every task is undertaken with an objective. Without any objective a task is rendered meaningless. The main objectives for undertaking this project are:    To understand the internal Recruitment process at ICICI Prudential Life Insurance To identify areas where there can be scope for improvement To give suitable recommendation to streamline the hiring process

The insurance sector is marked with a high level of attrition and therefore recruitment process becomes a crucial function of the organization. At ICICI Prudential Life Insurance, recruitment is all time high during MayJune and Oct-Nov. The attrition is high among the sales managers, unit mangers mostly in the sales profile. The recruitment is high during these months due to the fact that March and September are half year closing and business is high during Jan-Mar. Thus it is only after March that people move out of the companies. Since my summer training was in the months of May-June, it gave me the opportunity of involving myself directly with the recruitment process and analyzing the process so that suitable recommendations can be given. This project is centered on identifying best hiring practices in the insurance industries. It therefore requires great amount of research work. The methodology adopted was planned in advance so as to collect data in the most organized way. My area of focus was the recruitment and selection particularly at ICICI Prudential Life Insurance. I was directly involved with the recruitment for candidates for the sales profile. I was particularly involved with the sourcing of candidates for the regions outside Delhi such as M.P, U.P and Rajasthan. Before any task was undertaken, we were asked to go through the HR policies of ICICI Prudential Life Insurance so that we get a better understanding of the process followed by them.

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The first task was to understand the various job profiles for which recruitment was to be done. The next step was to explore the various job portals to search for suitable candidates for the job profile. Once the search criteria were put, candidates went through a telephonic interview to validate the information mentioned in their resume.

A candidate matching the desired profile was then lined for the first round of Face to Face interview in their respective cities.

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Firstly the candidate had filled up the personal data form(pdf). Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer was crosschecked by the HR team. If they think that the candidate was good to hire or not.

When a candidate cleared his first round, he is then made to take an online aptitude test. We created the online aptitude test. It the HR department, which has the exclusive rights to assign test, codes to the candidates. Each code was unique and could be used only once by a candidate.

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I was involved in assigning codes and administering the test Once the candidate completed his first assessment, his scores were checked. If he cleared his cut-off he was given another test.

I had the responsibility to make sure that candidates complete all formalities and had to regularly follow up with them.

Since we received many resumes, it was essential that a database be maintained to keep a track. It was convenient method than to stock up piles of papers. ICICI has their own database named as “PACE”, I update all the records of the new joinees in that tracker. PACE containes all the information of a candidate such as name, contact number, location etc.

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The external guide maintained a regular updating of the database. Understanding what kinds of database are maintained and how they help in keeping a record. I was also involved in maintaining a track of test codes given, the database for employee referrals, Database for the resumes received through mails and response of advertisement.

Date Source Primary Secondary ::Through Questionnaires Through Internet, Journals, News papers and Misc.

Data Collection Procedure :- Survey Research Instrument :- Structured Questionnaire. Sample Size : - 80 Sample Area : - work done in Delhi regional Office. Sample procedure :- Random sampling. PROJECT SCHEDULE :-

First 1 week

:-Training program from the company.

Second week

:-Collecting the primary and secondary data.

Third Fourth week

:- Study Recruitment & Selection Process

Fifth week

:-Designing the questionnaire .

Sixth week

:-Conducting the survey in RO.

Seventh week

:-Analysis of Data Collection.

Eighth week

:-Final Report preparation and presentation.

Limitations of the study

Every task is undertaken with an objective and accomplishment of this objective determines our success.

The recruitment at ICICI Prudential Life Insurance involved a lot search from the database and calling up candidates to check whether they fit the job specification. Difficulties:  Candidates were reluctant to talk at times;  Candidates who were contacted were not interested in Insurance on many occasions;  Candidates who were scheduled for interview would not turn up;  Run out of database many times since most of them would have already been contacted; Task: Candidates were to be searched from the job portals and called up to be scheduled for an interview. Difficulties:  A summer trainees we could not separate systems to work on;  At times many people had for couple of hours to work on the computer;

 Since STD calls had to be made, the availability of phone was limited, so there was greater coordination required with respect to its usage and maintains a time slot so that other person has a chance to use. Task: Inter company analysis through survey and questionnaire filling. Difficulties:  Did not secure cooperation easily;  People asked lot of counter question so convincing them was a major task;  People did not disclose much about their employee details.

Topic Information

“The art of choosing men is not nearly so difficult as the art of enabling those one has chosen to attain their full worth”. Recruitment is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted in order to acquire new skills and promote organizational growth. Recruitment follows HR planning and goes hand in hand with selection process by which organizations evaluate the suitability of candidates. With successful recruiting to create a sizeable pool of candidates, even the most accurate selection system is of little use

Recruiting begins when a vacancy occurs and the recruiter receives authorization to fill it. The next step is careful examination of the job and enumeration of skills, abilities and experience needed to perform the job successfully. Other steps follow:  Creating an applicant pool using internal or external methods  Evaluate candidates via selection  Convince the candidate  And finally make an offer Scope: To define the process and flow of activities while recruiting, selecting and appointing personnel on the permanent rolls of an organization. Authorization: S.No Authorized Signatory . 1 2 Head- Human resource Managing director

Amendments and deviations: Any amendments to and deviations from this policy can only be authorized by the Head-human Resources and the Managing Director. Exclusions: The policy does not cover the detailed formalities involved after the candidate joins the organization.


The organization philosophy should be kept in mind while formulating the recruitment procedure. The HR department would set the recruitment norms for the

organization. However, the onus of effective implementation and compliance with the process rests with the heads of the respective functions and departments who are involved in the recruitment and selection process. The process is aimed at defining the series of activities that needs to be performed by different persons involved in the process of recruitment, the checks and control measures to be adopted and information that has to be captured. Recruitment and Selection is conducted by:  HR & Branch Manager  Functional Head

RECRUITMENT PLANNING Recruitment planning on the basis of budget
A. The manpower planning process for the year would commence with the

company’s budgeting activity. The respective Functional heads would submit the manpower requirements of their respective functions/ departments to the board of Directors as part of the annual business plan after detailed discussion with the head of human Resource Function along with detailed notes in support of the projected numbers assumptions regarding the direct and indirect salary costs for each position.

B. A copy of the duly approved manpower plan would be forwarded by the HR department for their further actions during the course of the year. The annual budget would specify the manpower requirement of the entire organization, at different levels, in various functions/departments, at different geographical locations and the timing of the individual requirements. It would also specify the requirement budget, which is the cost allotted towards the recruitment of the budgeted staff and the replacement of the existing employees. The manpower plan would also clearly indicate the exact time at which the incumbent should be on board in such a way that the Regional HR has adequate notice for the time lapses involved in sourcing any other activities. C. The Regional HR’s would undertake the planning activity and necessary preparations in advance of the anticipated requirements, as monthly and quarterly activities on the basis of the approved budget, estimated separations and replacements therefore. D. The vacancies sought to be filled or being filled shall always be within the approved annual manpower budget and no recruitment process shall be initiated without the formal concurrence of the Head of the Regional HR under any circumstance. Head of the Regional HR shall also have the responsibility to monitor the appointments being considered at any point of time with specific respect to the duly approved manpower budgets. Review of Manpower Plans and Additional Manpower A. Review of manpower budgets shall take place on a quarterly basis. In the event of any new position or any deviations to the original plans, details of the positions maybe forwarded to the VP-HR along with the adequate supporting information. The recommendations would normally require a formal approval of the Managing Director. Alternately, VP-HR may record the summary of his discussion with the Managing Director

and the MD’s approval on the recommendations, to signify the final decision taken regarding the recommendations. SOURCING OF SUITABLE CANDIDATES Selection of Sources Regional HR would tap various sources/channels for getting the right candidate. Depending on the nature of the position/grade, volumes of recruitment and any other relevant factors, the Regional HR would use any one multiple sources such as:  Existing database (active application data bank);  Employee referral as per any company scheme that may be approved from time to time;  Advertisement in the internet/newspapers/magazines/company’s sites/job sites or any other media;  Placement Agencies (particularly for positions of Managers and above);  Headhunting firms particularly for senior positions, specialist positions and critical positions;  Direct recruitment from campuses/academic institutes;  Job websites and  Any other appropriate sources. The norms for using any of the sources are not water tight. Number of positions, criticality of positions and the urgency of the positions,

confidentiality requirements, relative efficacy and cost considerations would play a role in the choice of the appropriate sourcing mechanism. ADVERTISEMENTS  All recruitment advertisements (in any form and any medium) shall always conform to the KLI compliance norms and would not be released by any department or branch without the approval of the VP-HR. depending on the specifics of each position for which recruitment advertisements are to be released, Regional HR may obtain assistance from the company’s marketing department and/or any external advertising agencies for the preparation of the contents. Key features of the positions as notified by the Functional Heads would normally form a part of the advertisement text.  The media for releasing advertisement would depend on the level of the position being considered and the urgency of the requirements.  The advertisement mode that could be broadly specified as newspapers (local or mainline depending on requirements), internet sites and business magazines. Placement Agencies/Headhunting Agencies  Depending upon the vacancies, fresher fitting different description listed above may be recruited from time to time, from academic institutes of appropriate standards/reputation/grade, in the requisite numbers and at the compensation/stipend amounts to be formally approved of the VP-HR. Plans for such recruitment need specific special approval of VP-HR. norms regarding the identification of the appropriate institutes, constitution of the selection panels, timings of the recruitment, number of candidates to be recruited into different positions, choice of the appropriate selection process and the tools thereof shall be decided by the Head of the Regional

HR in consultation with the VP-HR, depending on the specific features of the position. Screening the candidates First level screening The Candidates would be screened by the HR Manager/Branch Manager for the respective locations. Screening would be on the basis of the profile of the candidate and the departmental requirements. This assessment will be with respect to: a. The general profile of the candidate, b. Personality fit of the candidate into the profile, c. Aptitude/attitude of the candidate, d. Motives of the person to join the company and whether focus is in the short term or is a long term player, e. Basic skill level on our set of requirements, say numerically ability, networking ability, etc f. Establish the annual guaranteed cash compensation of the individual and check whether the person would fit into the system. g. Explain the role of Sales manager to the applicant and check the acceptance of the candidate for the same. In case of need, the Regional HR may take a Tele interview of the candidate for further assessment process. Second Level Screening Aptitude Test If the first assessment is positive, the candidates will give the aptitude test, once such test is selected approved by the company. The scoring,

interpretation and the generation of interview probes from that test will also be done at this time. People who qualify the minimum criteria on this test will be put up on to the Functional Head (VP’s in case of HO) for functional assessment and suitability into the role. Tied Agency Sales Manager candidates short listed by the BM have will then take sales Aptitude test, once such a test is finalized. For the final selection, the regional Manager (Business Heads for HO) will meet the candidates short listed by the branch manager/VP. The chart specifying the Minimum approval level for each level of recruitment is specified below: Category Branch Manager/Chief CSE/ADVISORS BIC BM/CM SM Manager Yes Yes Yes Yes Area Manager/AVP/VP No Yes Yes Yes Business Heads No No Yes Yes Managing Director No No No Yes

General Norms regarding interview Process: A. Interviews should consider the entire data provided by the candidate either through the formal CV or otherwise before coming to a conclusion about the candidate. They may insist on seeing the proof of the claims made by the candidate regarding qualifications, experience and other achievements. They may, at their discretion, decide to meet the candidate on more than one occasion or to refer the candidate to another panel. B. Ratings on various attributes of the candidates shall be recorded in the interview evaluation sheet, soon after the interview is over. Along with these numerical ratings, qualitative observations about the candidate and overall decision regarding selection or otherwise (including a

decision to defer the induction, referral to another panel, considering for another position) shall be forwarded to the associated Recruitment Manager/ Head of Regional HR. Individual panel members have the option of appending their additional remarks/observations. No selection will be treated as final unless the IES form is filled comprehensively. Suitably appropriate IES formats may be created for specific positions. C. Any discrepancies noticed by the panel members regarding the authenticity of the data provided by the candidate should be specifically and formally recorded on the IES form and suitably high lightened. D. Specific points to be probed during the reference check process, if any, must also be clearly recorded and high lightened on the IES forms. Administrative Actions Regarding Interviews A. Scheduling and the venue of the interviews would be handled by the recruitment team in consultation with the short listed candidate and the selection panel members, after taking mutual convenience into account. For field positions, respective branch/regional heads would undertake this co-ordination. B. After the final round, if the candidate is selected, the complete set of papers Personal Data Form, CV, job requisition no., Interview evaluation sheet ,reference check details, educational details, along with the interviewer’s recommendations and Reference check form should be forwarded by the recruitment managers to recruitment head. Fitment of the candidate into a grade and compensation fitment shall be on the assumption of authenticity of the information provided in the CV/application form. C. An appropriate formal communication shall be sent to the candidate whose candidature is not being taken forward, or details of the verbal/telephonic communications provided to the candidate shall be recorded on the candidates papers, by the recruitment team/associated

line managers. In the case of interviews taking place at the branch/regional levels, similar noting should be recorded on the individual candidate’s papers. Negotiations of the terms and conditions and other pre-appointment formalities A. In the case of sales-Tied Agency functions, the branch managers will be allowed to fix the salary and grade of the incoming sales manager, provided the compensation does not exceed 20% of the candidates current cash salary. Any fitment beyond this norms will need the approval of Head-HR. HR will forward a worksheet to support the BM’s to evaluate the appropriate cash CTC of the incumbent. For all other functions, the compensation and grade would be fixed post a discussion between the Head of the Regional HR and the associated AVP/VP. Any candidate being offered a CTC of more than 4lacs will need the sign off from HEAD-HR. In appropriate cases, at the discretion of the VP-HR, a deviation may be referred to the Managing Director, for the MD’s formal approval. B. Responsibility for negotiations and finalization of the terms shall rest with the best Branch Manager/Associated Manager. They may seek the assistance of the recruitment managers, whenever required. Reference checks process should not normally be initiated unless the candidate has indicated his firm acceptance of the offer being made by us. Reference checks A. Normal, reference checks should be undertaken with at least one reference. A second reference check will be done if considered necessary. Responsible officials from the former employers, academic institutes and/or any other eminent personalities can be considered as

appropriate references. Close relatives and friends cannot be considered as references. Wherever feasible and considered appropriate, a reference should be made with a senior official of the candidate’s current employer. In case the candidate is currently un-employed, reference should be made with the latest employer. The format of reference check is to be used as a framework for conducting the process. B. Where the minimum two reference checks are not possible (particularly with the current employer) or where there is a mixed response from different sources, the matter may be to the VP-HR for a final decision. Depending on the seniority and any other considerations about the positions, VP-HR would normally consult the functional head concerned, before coming to conclusions. Any candidate whose credentials are doubtful shall not be recruited. C. In case of recruitment of Management trainees, fresher and life advisors as sales Managers no reference checks will be required. Employment offer letter
A. When a recruitment Manager is fully satisfied about the selection of the

right candidate and about completion of all the formalities connected with the appointment of candidate including requisite documentation, satisfactory reference check reports and medical fitness, he/she would forward the relevant papers listed below to the head of recruitment.  Personal Data form  Employee requisition form duly filled by the regional Head/Branch Manager

 Interview evaluation sheet filled by the regional head/Branch manager/interviewer with his/her comments.  Latest and updated resume of the candidate  Photocopy of the appointment letter of the last employer or latest salary slip.  Employment details.  Two Professional references.  Language Proficiency.

B. Document check list for every grade is as follows:

 Authorization Release Form.  Background check Form.  Highest Education certificate.  Highest Education marksheet.  1 Month Salary Slip of Current Employer.  1 Month Salary Slip of Last Employer.  Relieving Letter of last Employment.  Proof of Residence.  2 Passport Size Photograph.

C. Regional HR manager will take the signature of Head-HR on the

employee requisition form and forward the papers to the employee service team for issuance of the offer letter. D. Employee services team will issue offer letter, to be signed by the National Recruitment Manager or Chief Manager-HR, and send the same to the concerned Branch Manager/ HR Manager. E. It would be the responsibility of the Branch Manager/HR Manager to ensure that the accepted copy of the offer letter is forwarded to the employee service team within a week of receipt of the offer letter. Till this letter is issued, the ‘offer’ has not taken place in formal sense. A copy of the offer letter shall be duly signed and returned to the candidate. Candidate would be expected to fulfill various joining formalities, which are also formally communicated to him/her in the form of a checklist that is attached to the letter of offer. The Regional HR head shall have the overall responsibility and accountability to maintain the templates of the offer letters and also for drafting of suitable nonstandard terms to any specific candidate.
F. The employee service team will follow up Branch Manager/Regional HR

Manager for the joining of the candidate and will collect all relevant documents from the candidate including the joining report, before issuing the appointment letter. The employee service team may enlist the help of the Branch Manager to ensure that all necessary documents within ten days o the person joining. After the of all necessary documents, the employee service team will send the appointment letter to the new joinee.

G. Once the documentation is complete for the new joinee (including the

accepted appointment letter), people who may have joined before 20th of the month but have not been included in the payroll for the month because of delay in receipt of papers will be given ad-hoc salary advance (up to maximum of 65% of the pro rated salary). This advance will be adjusted once the person gets included in the subsequent month’s payroll. H. If the person does not submit the relieving letter from the previous organization, where required to be submitted as per the table given above, within three months of joining, the employee service manager can put their salary on hold till such time as the said documents are received. Key tasks of Regional HR Head Regional HR Head will have the authority and responsibility to administer/implement the recruitment and selection process as outlined. An illustrative list of the key deliverables of these incumbents is listed below.  Ensuring inductions as per quality, numbers, time and cost consideration of the company in accordance with the approved manpower budget.  Creation of appropriate sourcing mechanism along with tracking the performance of these mechanisms.  Creation of quarterly and monthly recruitment plans  Effective coordination with external parties such as candidates, placement agencies, consultants, academic/professional institutes and any other including the custody of the formal agreements , tracking timely payments and adjusted thereto

Creation of comprehensive and appropriate tools, linkages, documents, templates and any other mechanisms to ensure smooth execution of the process requirement, along with timely improvements thereto

 Assistance to user department and line managers including in interviewing/selection support, scheduling etc.  Effective internal communication with user departments and line managers including making the standard recruitment formats and other templates easily available to such users and notifying the modifications to such formats and templates.  Creation and maintenance of qualitative information base regarding candidates, placement agencies, campuses, institutes, and any other employment-market information.  Creation and maintenance of appropriate and high-quality MIS for current and future needs of the organization, including publication/circulation of appropriate reports there from to the relevant users within the company.  Monitoring recruitment costs  Complete documentation for the entire recruitment and selection process for easy and quick retrieval in a readily auditable format  Timely and effective communication with all internal and external parties including the candidates  Tracking the progress of the selected candidates including resignation, extensions of probation periods/training period, etc for the purpose of improvement to recruitment and selection process.

Effective coordination with the post recruitment arm of the Human Resource function

Documentation and creating MIS regarding waiver, deviation, etc and identifying the key areas for improvement in the formal recruitment and selection process document.

SWOT Analysis of ICICI Prudential Life Insurance’s Recruitment Process
Brand equity of Kotak Mahindra Bank. Rigorous Pre-Hiring assessment tests to understand aptitude and personality of candidates. Proper reference checks to ensure that only bonafide candidates are appointed. Adequate number of channel partners to generate footfalls for each location. Footfall MIS being maintained at each branch locally by Admin.

Pre assessment tests are costly. Conversion of footfalls is low. Lengthy pre-offer formalities. Huge employee turnover.

Campus recruitments have huge potential for fulfilling manpower

Increasing number of private players in insurance sector creates ample choices, frequent and easy mobility

requirements cost effectively. Tie up with recruitment agencies on supplying fixed number of footfalls week on week. Develop exclusive contract with channel partners to meet the manpower requirements. Make blue form brief and to the point. Reduce turn around time of making an offer.

for employees. Same channel partners are handling all insurance companies. This leads to same pool of candidates being circulated to all partners. Increasing spill over as a candidate has more than one offer at the time of making a job shift. As the insurance industry is small, senior level candidates hesitate to meet HR of other companies for the fear of grapevine.

Compress the "white space" in your hiring process.
White Spaces are delays in hiring process that are unproductive, waste time, and virtually assure you'll lose talented candidates. Often the longest delays occur between critical selection events. For example, a recruiter may need several weeks to screen a few hundred resumes from the Web job boards, or candidates who make it through screening may wait weeks to interview with a hiring manager. Here at ICICI Prudential Life Insurance, the delays occur when the outstation candidates are called for interviews at Regional branches like Delhi and Mumbai. Sometimes, because of busy schedule of senior managers and sometimes because of tight schedule of candidate, the interview has to be postponed. This delay could be minimized by scheduling interviews in the regional locations. It is recommended to reduce the turnaround time for the

recruitment and selection process. It must be made mandatory for the candidates to take the test, filling up forms etc within the stipulated time, this will make sure that the candidates do not hold casual attitude and take the recruitment process more seriously. Additionally it can send across a positive image about the company. White space in recruitment can be compressed by the use of IT also. Technology (such as automated or Web-based tracking) is ideal for eliminating unnecessary steps and reducing delays.

Tie up with more & more consultants from multiple segments
Since the limited placement agencies are sourcing candidates to all insurance companies, there often comes the problem of duplication of data. Therefore it is recommended that more and more consultants should be tied up from multiple segments to attract large pool of new and fresh talent.

Know what you're looking for in candidates.
It is observed that the candidates sourced by placement agencies and send for further rounds of interviews are rarely found suitable by the hiring managers. Therefore, in case there is need to utilize the service of a placement agency, then it is recommended that these placement agencies be given a well drafted job description and job specification. This can also be circulated to internal employees under the employee referral scheme. This will help people to get a clearer picture and provide for most suitable candidates. Thus making efficient utilization of the existing resources.

Reduce the pre offer formalities:
Pre-offer documentation includes filling of a lengthy Blue form which includes all personal, educational and professional details of candidate. This is very time consuming and even after taking these details from candidate its not sure that offer will be made or not. This also becomes frustrating for the candidate sometimes. So, it is recommended that unnecessary details should

not be asked before we make the final offer to the candidate. Blue form should be made consise.

One size doesn’t fits all
An effort must be made to study local condition, education levels. Since applying common test for all candidates across entire country can overshadow a candidates capabilities. This factor must be given importance since Indian society is divided on various parameters such as education, language, infrastructure etc. A test with high level of English and complicated sentence structure can be a hurdle in areas where language itself is barrier. An option is to have different tests for different regions.

Blend technology into every aspect of your recruiting and hiring process.
Web-based technology lets you increase hiring speed and quality while reducing costs. Currently, job boards constitute the biggest use of the Web, offering access to thousands of resumes within hours. But the Web can also be a powerful tool for screening and qualifying that flood of resumes. Companies have begun to use the Web to collect and instantly match data on candidate skills, motivations, and experiences against job criteria. Other uses of Web-based technology include online interviewing, candidate assessment and testing, applicant self-scheduling, and tracking. Work the Web wisely and you save time for recruiters and hiring managers and nab top candidates before your competitors can.

It is recommended that apart from the person-job fit, method must be devised to check for person-organization fit. A person-organization helps to assess how well a candidate is suited the organization. Whether the attitude he/she carries will promote both organizational as well personal goals. This takes a great importance especially when attrition is high. It will

help the organization to retain its employees for a longer period of time and less burden on recruitment staff.

Build and manage your candidate pool as a precious resource.
A "candidate pool" is a group of individuals who have shown interest in working for your company and are qualified for and ready to fill certain positions. Rather than undertaking the time-consuming process of filling one job at a time, you draw on the candidate pool and fill jobs as they become available. How do you keep a pool active? Some companies send their newsletters to pool candidates, give them product coupons, and keep in touch through e-mail. Pool management is not easy in a tight labor market --good candidates often go elsewhere. But many organizations, especially those with a reputation as a great place to work, are able to fill positions quickly using the pool concept.

Create winning impression even on those who are not selected
Its very important to create a favorable impression of your organization on all those who come for interview. Those who are not selected in the first round of personal interview should also carry this impression that they have missed the opportunity to work in a great company. For this, there must a proper coordination of the interview of the candidate and greater degree of professionalism. A candidate when invited for a interview must be attended as soon as possible and should be made to wait for hours together. Interviews conducted on a scheduled time leave a good impression on the candidate. Even if he is not selected, a good impression about the will make him recommend the name to his people.


Insurance is confronted with high attrition rate. Therefore it makes recruitment a critical function in the organization. In order to grow and sustain in the competitive environment it is important for an organization to continuously develop and bring out innovations in all it activities. It is only when organization is recognized for its quality that it can build a stability with its customers. Thus an organization must be able to stand out in the crowd. The first step in this direction is to ensure competitive people come in the organization. Therefore recruitment in this regard becomes an important function. The organization must constantly improvise in its recruitment process so that it is able to attract best in the industry in order to serve the best. Thus the organization must look out for methods that can enable it to adopt best recruitment practices.

Every endeavor undertaken to accomplish challenging goals, can only be successful under the experienced and encouraging guidance. I am privileged to have undergone training at ICICI Prudential Life Insurance. As learning never stops, my learning at Kotak has come from a lot of exposure, on the job training and close interaction with the corporate. In brief my learning and achievements can be summarized as under: Understanding of person and profile fit. Convince people about the job profile and to sell the job to the prospective candidate; Following up with the candidates during the entire selection process; Learned to convince candidates about the offer rolled out and making them accept the offer through effective communication; Learning about salary fitments. Communicating with the corporate; Performance appraisals, its various types, implications and significance; Handling queries received from various quarters; Managing HR department in the absence of HR manager; Reply to official mails; Prioritize issues according to their importance; Field work exposure to tap candidates that further strengthened the learning.

Q1.Do you have a clearly stated Recruitment & Selection Policy ? • Yes • No • To some extent

2) What are the quality of ICICI Prudential Life Insurance Company recruitment System:• Quick Response time for requirement • Bringing in Quality People • Proper coordination with other team or department • Efficient Maintenance & Updating of Database 3)What Recruitment Sources are used? • Advertisement • Employee Referral • Consultant • Portals • All of these….

4)Does ICICI Prudential adopt Internal Recruitment Source i.e. Transfer & Promotion:-

(i) Yes

(ii) No

If Yes than for which type of post…………………………………. 5)Which source of Recruitment is better for companies:(i) Internal Source (ii) External Source

(iii) Depends on Situation & Post…………………………………… 6)Rank the Qualities in the order of your preference on the basis of which you select candidate:• Qualification • Experience • Skills • Personality • Depend on Job Variety 7) How many Stages are followed in selection procedure:• 2 • 3 • 4 8) Does ICICI Prudential ask candidates to enter into BONDS with them:• Yes • No If Yes then what kind of Job or Department………………………….

Q9. Is the estimation of Recruitment Process cost is done? • Yes • No

Project Report on Business Process Outsourcing

Business Process Outsourcing
“Outsourcing is more like a marriage than a transaction. The key to success is confidence, trust and relationship. BPO results in win–win situation. The Company gets excellent service at reasonable cost while contractor/service makes a fair profile.” No contemporary business organization can ignore the power of BPO (Business Process Outsourcing). Most companies adopt outsourcing of various processes as one of the key strategy including remaining. a) Cost competitive. b) Flexible organization. c) Less capital intensive. d) Focused Attentive in the core area. “Outsourcing has become a useful tactic to power Cost and gain competitive advantage”. By Elmuty D Kithawala (1998). With a view to have maximum flexibility and trimmed and slim workforce, modern business in this global are adopts outsourcing as a strategic decision – rather than only cost compulsion. While own employees are deployed on key areas; tradition and non-traditional areas are outsourced. Such contracts are usually intended to last for longer period say 7 to 8 years. This powerful and much talked about tool need to be handled carefully.

Importance of Outsourcing
Outsourcing is more like a marriage than a transaction. The key to success are confidence, trust and relationship. Successful BPO results in win-win situation. The Company get excellent services at reasonable cost while contractor/service provider makes a fair profile. “Outsourcing system [Knowledge Process Outsourcing and Business Process Outsourcing] allows companies to contract for services that are not with in the scope of their expertise, so that they can focus their time, money and energy on wasting valuable resources trying to gain understanding of areas that are somebody else’s example". By A. Campbell and K.S. Luchs in Core Competency Based Strategy. The modern management thinking in the global area, puts Outsourcing as one of he key strategy to remain cost leader in the Industry. All the core areas are manned by own employees whereas other areas including non-conventional area for outsourcing are taken care of through contractors.

What is to be outsourcing?
1. Conventional Areas: a) House keeping of Building and work areas. b) Security of Plane and Township.

c) Car pool… d) Catering, Hospitality and Canteen. e) Horticulture establishment and Maintenance. 2. Non – Conventional Area: a) Maintenance of Critical and Specialized Equipments. b) Crane Maintenance. c) Internal Material Handing with equipment/ manual. d) Quality Lab Operations. e) Packing of HR Coils. f) Refractory Lining and Management. g) Annual Maintenance Contract for Computers. h) Annual Maintenance Contract Telephones. i) Safety and Fire Fighting Team including operation of fire tender. j) Commando type Maintenance Team specialized in shut down activities. k) Environment Mortaring on specified parameters. l) Waste Handling. m) Health Management. 3. Emerging Areas: i) Procurement activities. ii) Accounting activities. iii) Human Resource Functions. iv) Management/total solution contracts.

Why performance evaluation is necessary ? For a business organization the continuation of various activities is key to survival and sustenance. Every company has a right to strive for efficiency and continuously improve to become a world class company. One of the popular management tool is Plan, Do, Check, and Act(PDCA). Based on about tool, Performance Appraisals are made to determine. The quality and quantity of actual performance viz-a-viz provided in the contract. Adequacy and effectiveness of policies and Approaches deployed by the contractor And thus identify the action necessary to get continual improvement evaluation of outsourcing contractors including fabric of workers deployed by them specifically from Industrial point of view is of paramount importance for an organization where various activities are outsourced. Performance Evaluation helpful in many ways: Able to classify good contractors from the one who are below performing below normal can be either pulled up or weeded out. Outsourcing various activities followed by performance evaluation helps in effective outsourcing and thus remaining flexible. Despite being big organization which are thin. The best example of flexibility in the steel company was ability to take up billet production (value added production) through outsourcing during a temporary period when main product sale was difficult. Performance Evaluation helps in development of contractors to take up new and challenging

jobs. The reliable contractors are partners and prove back bone for today’s business organizations. When contractor is aware that the performance is being evolution he tries for best efficiency. This helps in improvement in the overall performance and value addition. Specific advice can be given to contractor for improvement in the ar4eas of job performance, industrial relations, safety, statutory compliances, industrial hazards training to their employees etc. thus avoiding of subsequent magnified problems threatening to the complex fabric of business activities. Help in better understanding and thus building good relationship of trust and confidence. If also helps in future assessments of contractors for new works at tender stage. Various Recommended Aspects of Performance Evaluation: Suggested Model and criterion for evaluation: a) The contractor/service Provider 100 points b) Work Performance 500 points c) Safety Aspects 100 points d) Industrial Relations 100 points e) Environmental Obligations 100 points f) Statutory compliances 100 points Total 1000 point 1. The Contractor/Service Provider: 100 points The details regarding the persons who are behind the form, their qualifications and previous experience of handling the jobs or similar assignments. Their approach deployment towards day to day problem solving, balancing needs, expectations, pressures and requirements. Personal involvement of their key person\el in the contractual activities. Easy accessibility through various communication means and their response time. Participation in professional bodies, conferences, seminars relevant to their work or general management. Identification of critical success factors, sharing best practices and knowledge. Promoting social and cultural activities. Dimensions of Performance Evaluation The Contractor Work Performance Safety Aspects Environment Compliance Industrial Relations Statutory Compliance 2. Work Performance: Ability to understand the objectives: Whether the contractor and their staff understand the objectives and goals of the contract. In some cases where outsourcing has failed, the survey revealed that “they did not understand what they were supposed to do” Required Skills and Behavior: Whether the staff deployed by contractor have required qualification, experience and skills to do the given job. During Review, it is always better to have complete profile of workers on the job. In some cases, no new entrant is allowed unless interview is taken and he is exposed to various training related to job, safety and environment. Actual Work :

Whether the quantity and quality of work/service delivered as per the agreement. This becomes more important in case contract provides for fixed monthly charges. In case of maintenance, whether maintenance schedules have been followed. Service indicator such as Whether average mean time between to maintenance is increasing or decreasing, Total asset life cycle performance assessment versus cost, Productivity of equipments under maintenance cont4ract need to be assessed. The performance evaluation system emphasizes the importance of defining the goals and objectives associated with any major outsourcing initiative prior to choosing a supplier and signing a contract. Obtaining the right advice, learning from the experience of others, and developing and applying appropriate benchmarks to the initial evaluation process are all-important steps. Benchmarks must reflect what is important to the concerned organization; they underpin the process of regular assessment of an outsourcer’s performance and can be a most valuable element in ensuring that the company continue to benefit from cost-effective, competitive, and high-quality service throughout the life of an outsourcing contract. Jan Duffy, group vice president of Solutio9ns Research, says that “Benchmarks may be difficult to develop and administer, but they can play a major role in sustaining a satisfactory relationship between buyer and supplier in an outsourcing situation. However, they do not replace the trust, confidence, and goodwill that are the foundation of every successful outsourcing partnership” In case of critical movement of materials, whether timely movement has taken place and has not affected the smooth production. Proactive Behavior and responsiveness: At various occasions, how the contractor and their employees have behaved and how fast6 is their response to emergent needs. Humber of complaints against the contractor relating to the work: Number and type of complaints from the user department received during the review period. Health of the Equipment/Tools and Tackles relating to contractor: a) Whether the contractor has the system of breakdown maintenance of their equipments/Tools and Tackles. b) Whether any preventive maintenance scheduled has been kept and being adhered to. c) The age of the equipments/Tools and Tackles owned and used by the contractor. d) Any standby arrangement to meet the emergency breakdown. e) Arrangement with the diesel/fuel suppliers for ensuring continued availability in working condition. f) Stock holding of urgent and critical spares. Use of Material: a) If the contract provides that material to be procured and used by contractor, the quality of material is to be assessed. b) Determine whether contractor is optimizing the use of materials. c) Proper material accounting is made and scraps if any is returned to the company. d) Minimum inventory is kept-to avoid any stock out and thus threatening the stoppage of work.

Knowledge Management: Methodology adopted for collecting of various information and sharing the same with the company Image: Any appreciation received;’ Suggestion given by the staff. General image of contractor. Loyalty: Duration of the relationship with the company. Number and value of orders obtained during the review period. Price Competitiveness: Sharing of information on various aspects of expenses, cost analysis, innovative methods to reduce cost. Sharing of savings, Bonus, Penalty clauses agreed in the contract. 3. Safety Aspects: Company requires that the contractor will at all times work in a safe manner and not put themselves, company employees, any human being or materials at risk. The contractor and its staff is to be fully aware of the company policy on Safety. Whether contractor is qualified engineer or employs qualified personnel to take care of the safety of various workmen employed. Whether contractor is providing the personnel protective to each workmen and the records are being maintained for safety items like Shops Helmets, Goggles, Belts, Jackets, Dust Protectors, LegGuards etc. Whether the contractor and their employees are exposed to the safety trainings. Whether the contractor follows work permit system, hot work permit system as prevalent in the company. Special precautions for working in confined space and at heights. Medical check up of employees working in such condition 4. Industrial Relations a) Whether contractor has kept a qualified personnel to take care of Industrial Relation aspects of his employees. b) Whether contractor is paying at least the minimum wages as per State Government stipulations. c) Whether the contractor has system to handle the grievances of employees, i.e. the Grievance Committee having some members amongst the employees is in place. d) Whether payment of wages are being made on due date. e) In case of critical work, whether the staff is residing nearby area. 5. Compliance to Environmental Obligations: a) Whether the contractor is aware of various hazards in their work area and given suitable instructions to their employees. b) Whether the contractor is aware of various areas earmarked for disposal of industrial waste (relevant to his work) c) Whether the contractor / their staff has obtained adequate Training.

6. Statutory Compliances by the Contractors; a) Registration under the labour laws. b) Payment of minimum wages. c) Payment of wages latest by 7th of each month. d) Prohibition of employing anybody below 18 year of age. e) Provision of Safety items like helmet, shoes and safety belts. f) Provision is leaves to their employees. g) Provision of uniform to employees. h) Keeping of various statutory records. i) Registration under Provident Fund Act. j) Payment of Provisional Taxes. k) Employees are covered by workmen compensation Insurance Policy. l) Submission of various returns and forms to the statutory authorities in time. m) Compliance of provisions of Payment of Bonus Act and Gratuity Act. n) Provision of first and facility. Ways in Which Outsoaring Management Can Improve Productivity Market Gains · Improved response · Economic of Scale · Improved sales Outsourcing Increased Management Profits Reduced Costs Increased productivity Lower rework/scrap costs Lower warranty costs Improved Service Implementation Aspects; Evaluation Committee: This committee will have representations from Contract Cell, User Department, Safety Department, HR Department and Environment Department. Periodicy of Appraisal: As a matter of procedure, Performance review need to be done once in a year, could be January every year” However , in case of poor performance, the periodicity can to basis. Benchmarking / Trends: Over the period of time benchmarking to be set in. The performance data wherever possible to be converted in numerals and records kept for understanding the trend. Best BPO Partner Award; The instituting of best outsourcing contractor award and its announcement in terms of improvement and efficiency. The best contractor may become the role modal for others to follows. Feedback:

A feedback system need to be evolved to communicate all the outsourcing contractors who have been reviewed, about the areas for improvement. Back to Main Menu

Summer Training Report on

Customer Satisfaction of Life Insurance Companies
Comparative Analysis of Kotak Life Insurance (A Unit of Kotak Mahindra Old Mutual Life Insurance Ltd.) with Other Insurance Companies

DECLARATION I, _____________Roll No._____________M.B.A Final year of _______________________hereby declare that the Summer Training Report entitled Comparative Analysis of Kotak Life Insurance with Other Insurance Companies is an original work and the same has not been submitted to any other institute for the award of any other degree. A seminar presentation of the Training Report was made on ________ and the suggestions as approved by the faculty were duly incorporated.

PREFACE This research is a part of my summer training, which is included in the curriculum of my Master of Business Administration. We cannot rely merely upon the theoretical knowledge. It is to be complimented by practical know-how for it to be fruitful. A positive and correct result of the classroom learning needs realities of practical situation. The training enables the management students to see the working conditions under which they have to work in the future. It gives them a real feel of the corporate world, which helps them to better equip themselves with the required skills. It has been a great learning experience for me. The project report is divided under 5 chapters.

Chapter 1 includes significance; review of literature, focus of study and objectives Chapter 2 includes the industry and company profile Chapter 3 includes research methodology and limitations of the study Chapter 4 includes the theoretical analysis and findings of the study Chapter 5 includes bibliography and annexures.

INTRODUCTION TO THE STUDY Life is full of risks. Being a social animal and risk reverse, man always tries to reduce risk. An ageold method of sharing of risk through economic cooperation led to the development of the concept of “insurance”. Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is collective bearing of risk. The risks, which can be insured against, include fire, perils of sea, death, accidents and burglary. Insurance can be defined as a legal contract between two parties where one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium. The insurer and the insured are also known as “Assuror and Assured”.

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders are used to bear risk of the caravan by giving loans, which were later repaid with interest when the goods arrived at safely. The first insurance contract was entered into by European maritime nation in 1347 to accept marine insurance as a practice. The oldest life insurance company in existence today is the society fr the equitable assurance of lives and Survivorship, known as “old Equitable”. It ws established in England in 1756.So before discussing more about this topic I would like to explain what is Insurance? Life Insurance : Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. The opening up of insurance sector was a part of the on going liberalization in the financial sector of India. The changing face of the financial segment and his entry of several companies in the field of life and non life insurance segment are one of the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to the GDP. Despite the fact that the market is vast in India for the insurance business, the coverage is far less compared with the international standards. Estimates shows that a meager 35-40 million, out of a population of 950 million, have come so far under the umbrella of the insurance industry. The potential market is so far huge able to make deeper penetration into newer segment and expand the market size manifold. Over the past three-year, more than companies have expressed interest in doing business in India. The IRDA is the regulatory authority, which looks over all related aspects of the insurance business. The provisions of the IRDA bill acknowledge many issues related to insurance sector. The IRDA bill provides guidance for three levels of players’ insurance companies, insurance brokers and insurance agent. Life insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP The huge potential of the Indian insurance market is up for the taking. We can understand the importance of the life insurance sector for India from following facts:
• • •

The fifth largest insurance market in Asia. The third largest emerging market in the world today Insurance sector accounting for3% of GDP and we have a population of more than one billion.

Global players have set eyeballs in Indian market. The Indian market is no doubt one of the biggest markets in the world. Accounting to the experts of the industry, Indian life insurance sector of $7.7 bn will grow to $25 bn by the end of 2007. Though the sector has been opened for private participation just a year ago, it has already witnessed a several competition among the players. With the opening of the insurance sector, there are presently 16 life insurance companies including life insurance corporation of India operating in India with more players expected to come in. SIGNIFICANCE OF THE STUDY With largest number of the life insurance policies in force in the world, insurance happens to be a mega opportunity in India. It is a business growing at the fast rate of 15-20 per cent annually and presently is of the order of Rs. 450 billions. Together with banking services, it ends about 2 percent of GDP and funds available with LIC for investment are 8 percent of GDP. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The growing popularity of the private insurers shows in other

ways. They are coining money in new niches that they have introduced. And in the popular unit linked insurance schemes they have a virtual monopoly, with over 90 percent of the customer. Thus, it becomes all the more significant to study the market share and the trends in insurance sector and to compare static and growth ratio’s of different insurance companies to have a clear ideas of the potential of growth of this industry in a largely populated country of India. The study of Competitive Analysis of Kotak life insurance with both public and private insurance companies tells the market position of the company and the market share of the company. This study also tells about the strength and weakness of the various companies in the industry. The life insurance companies are coming with different schemes for different people. Study about the various Insurance companies, which are in the competition of Kotak Life Insurance, has more significance. This study will help in different ways. The importance of the study are:
• • • • •

This study will help in making the data more understandable and simpler. This study will indicate the current Market Trends This study will indicate the strong points and weaker points of Kotak Life Insurance with its competitors. To compare the company’s performance with the average performance of the Industry this study would be beneficial. This study will help in forecasting the future trends.

Review of Existing Literature As per the review of the existing literature, researcher referred to many journals, articles of the magazines of business sector. Different sites related to life insurance were surfed and various books are also referred. From all these, it is observed that in the past five years, tremendous changes have occurred in the field of insurance sector, especially in life insurance. ‘companies’ policies are changing because customers have become more demanding. Each company is providing more and more beneficial schemes in comparison to other to increase their market share. “Insurance Generation next” During the round table discussion the progress of Indian insurance industry, after liberalization was examined. Following aspects came forth:
• • • •

Major changes have take place over the past couple of years and market is to be expected to expanding a big way. Insurance companies must go in retail in a big way Need for up gradation of system and infrastructure Utmost urgency in finding out of the need customers

NC Sharma, MD, LIC ‘LIC set the benchmark, with premium income –the kind of plan that we have, other companies tend to look at that, the premium by a certain % and try to make their plans look more attractive. The KPMG repot, titled insurance: IRDA chairman N Ranngachari released trends and issues, in New Delhi on 9 Nov. Mr. Ranngachari said the government planned to bring out separate pieces of legislation to regulate insurance surveyors and actuaries, after the passages of IRDA bill. Ian Watts, CEO, Tata-Aig life insurance ‘ the no of policies that we have sold are much more than we expected with low premium, high volumes. Static in Dalal streets reveals that; “Approximately 80% of the population is still uninsured leading a whole lot of untapped market to harness for the insurance companies. According to ORG –MARG LIC retained top insurance player but it has lost its share to private sector players compared to previous round of the study. LIC witnessed a drop of 12% to finish at 15%. While ICICI Pru HDFC Std life and Kotak Life Insurance managed an increase in share by 8% 3% and 2% respectively. HDFC fought back to regain it’s position among top five, lost earlier to OM Kotak Mahindra. The KPMG report makes the following observation with regards to insurance sector in India:
• • • • •

The threat of new players taking over the market has been overplayed. Nationalized players will continue to hold strong market share position, but there will be enough business for new entrants to be profitable. Opening up the sector will certainly mean new product, better packaging and improved customer’s services. A middle market approach tapping segments and niches that are currently underserved will prove profitable for new entrants. New companies often overestimate the need for insurance expertise, assuming that a joint venture is most appropriate type of alliance, when in fact many forms are possible. Both new entrants and exiting players must explore new distribution and marketing channels.

OBJECTIVES OF STUDY Every study has some objectives. Without objectives no study can be completed. So objectives of my study are following:
• • • • • • •

To acquire the knowledge of Various Life Insurance Companies. To know the consumer behavior towards Insurance Products. To create Mass awareness about the Insurance Product To Help the Kotak to expend client base and Market Share. To know the factors which can provide an edge over Competitor To Study which company prefer when taking insurance product. Get familiar with what is Insurance and concept of marketing power game.

• • • • • • • •

Get familiar with multiple Marketing tools and techniques would be used to capture synergy effect in the study. To know with more concentration about this service sector eventually lead to more market power for the firms. If above objective is true then identified the extent and dimensions of the power search and retrieval. To know about the various investment and insurance product of various companies. To know about various products of the Kotak life insurance. To know about customers taste in insurance and investment sector. To understand the future scenario of insurance and investment sector. To assess the factor responsible for investment and insurance.

CONCEPTUALIZATION As in the today scenario, globalization is increasing day by day. Thus it is necessary to know about the insurance. The main concept of choosing this project is to familiarize with the products and policies. The target market of insurance is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the insurance company provides a wide range of commercial and transactional services, trade services etc. FOCUS OF THE STUDY The Life Insurance Market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection, with the entry of the private insurers the rules of the game have changed. Despite its teeming one billion populations, India still has a low insurance penetration of 1.95 percent, 51st in the world. Despite the fact that India boasts a saving rate of around 25 percent, less than 5 percent is spent on the insurance. Yet, nearly 80 percent of Indian populations are without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly old age income security. This itself is an indicator that growth potential for the insurance sector is immense. Thus, the main focus of the study will be on the comparison, which will be studied under the main problems, are the financial position, market share, services, customer satisfactions, policies benefits, premium, and terms etc, which have created awareness in the minds of Indian public about the importance of life insurance.

The first stage involved initial discussion between the various team members and the company in order to identify the research objectives (Rationale of the research), which is the most difficult step in the research process. RESEARCH DESIGN Research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with the economy in procedure. It is the blueprints for collection, measurement and analysis of data. Type of Research: Analytical Research Under the analytical research, the researcher has to use facts or information already available and analyze the facts and information to make a critical evaluation of the material. The research is designed to study the performance of insurance companies in the post-liberalization era. The methodology followed for research is as following: 1. Survey of concerned literature 2. Collecting data:
• •

Quantitative Qualitative

3. After the collection of data the raw data is processed through editing, loading, classification and tabulation to make analysis of the data of information After the analysis the finding are drawn and recommendations/conclusion are made. The research design which help to answer the following questions:
• •

Why the study is being made? From where the data needed can be collected?

DATA COLLECTION 1. PRIMARY DATA These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection 2. SECONDARY DATA

The secondary data as it has always been important for the completion of any report provides a reliable, suitable, adequate and specific knowledge. The standard cost reports, working sheets provide the knowledge and information regarding the relevant subjects. Secondary data is a data, which is collected from various sources. Secondary data is not a fresh data so it has its own limitations like: Time Constraints, Accuracy and Applicability. UNIVERSE AND SURVEY POPULATION SAMPLE The process of collecting observation from the elements of a large population may be expensive, time consuming and difficult. It will be cheaper and quicker to collect the information from a sample of the population. A sample is a fraction or a subset of population through a valid statistical procedure so that it can be regarded as representative of the entire population. The valid statistical procedure of drawing sample from the population is called sampling. Nature of sampling Random sampling has been used here. Random sampling is a type of sampling technique where each element of population has a chance of getting selected. Nature of this sampling is random sampling because each insurance company has an equal chance of being selected is its category. Sample units: One of the units which an aggregate is divided or regarded as divided for the purpose of sampling, each unit being regarded as individual and invisible when the selection is made. The definition of unit may be made on some natural basis or on some arbitrary basis. In the case of multistage sampling the units are different at different stages of sampling, being “large” at the first stage and growing smaller with each stage in the process of sampling. The sample size for measuring the performance for life insurance companies is as follows: This study is based on analysis the performance of different life insurance company in India, LIC is the major player in the market, there are 15 other life insurance companies operating in the country. Thus the size of the universe is 16. Out of these 16 companies, 4 companies are selected; in these one is Public Company and other Three are Private Companies:
• • • •

Life Insurance Corporation of India Kotak Life Insurance ICICI Prudential Life insurance HDFC Standard Life Insurance

Analysis pattern After the data is collected and editing, the next job of the researcher is to present it systematically. The collected data is so large, complex and unarranged that it can’t be processed without arranging it according to same charteristics. The following statistical and analytical tools have been used: Graph:
• • •

Various plans offered by the companies. Net Asset Value of Companies major Plans. Market Share of the companies.

The insurance sector has a long history in India. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. The 1st legal enactment was made in 1870. The 1st Indian Insurance Act was passed in 1938 and amended in 1950, when it was nationalized. However, the sector was once again thrown open to the private sector on December 1999, followed by the establishment of the Insurance Regulatory and Development Authority (IRDA) in April 2000. Though the Insurance Sector is now open for private players as a consequence of the new liberalization policies of the Government, the existing government owned Insurance companies will, nevertheless, continue to be in the government sector. These existing companies will, however, have to strive for better realization of their corporate objectives and goals to meet the demands and expectations of the public. Quality of service and product that an industry offers must move forward with progress in the state of the economy. As the quantum and quality of service change over time, the levels at which customers continue to remain satisfied with the services provided, also keep on increasing. Ultimately, the success of any industry depends upon its positioning in the state of economy and on meeting the expectations of the service users. With competition, the performance level of individual companies is expected to increase. Segmentation is taking place within the economy with a need for socially responsive service sector.

Globalization is the new economic reality, which is here to stay, heralding a new era of insurance in India. With the opening of the insurance industry, India stands to gain with the following major advantages:
• • • • •

Globalization will provide improved opportunities to the customer for better products, with more reasonable and affordable pricing. The customer will get faster servicing. It will enhance the savings rate. Long-term funds for infrastructure development will be available to the Country. It will secure for India larger inflows of foreign capital needed to sustain our GDP growth.

So, it’s clear that the insurance was in private hands before 1971 and was nationalized in 1972 with all private companies merged into General Insurance Corporation of India as The parent company with 4 subsidiaries as National Insurance Company Ltd. with Head Office at Calcutta, New India Assurance Company Ltd. with Head Office at Bombay, Oriental Insurance Company Ltd. with Head Office at New Delhi and United India Insurance Company Ltd. with Head Office at Madras. In 1993 the need for Private Insurance Companies and Multinational Companies was felt and beginning of liberalization process started.

Life Insurance History :
Life Insurance History : Life insurance in its existing form came in India from United Kingdom (UK) with the establishment of a British firm, Oriental Life Insurance Company in 1818 followed by Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance Society in 1829 and Oriental Life Assurance Company in 1874. Prior to 1871, Indian lives were treated as sub-standard and charged an extra premium of 15% to 20%. Bombay Mutual Life Assurance Society, an Indian insurer that came into existence in 1871, was the first to cover Indian lives at normal rates. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life insurance business. Later, in 1928 the Indian Insurance Companies Act was enacted, inter alias, to enable the government to collect statistical information about life and non-life insurance business transacted in India by Indian and foreign insurers, including the provident insurance societies. In 1938, with a view to protecting the interest of insuring public, earlier legislation was consolidated and amended by Insurance Act, 1938 with comprehensive provisions for detailed and effective control over the activities of insurers. In order to administer the aforesaid legislation, an insurance wing was established and attached first with the Ministry of Commerce and then

Ministry of Finance. This ministry was administratively responsible for policy matters pertaining to insurance. The actuarial and operational matters relating to the insurance industry were looked after by an attached office in Shimla, headed first by Actuary to the Government of India, then by Superintendent of Insurance and finally by the Controller of Insurance. The act was amended in 1950, making far-reaching changes such as requirement of equity capital for companies, carrying on life insurance business, ceilings on shareholdings I such companies, stricter control on investment of life insurance companies, submission of periodical returns relating to investments and such other information to the Controller as he may call for, appointments of administrators for mismanaged companies, ceilings on expenses of management and agency commission, incorporation of the Insurance Association of India and formation of councils and committees thereof. By 1956, 154 Indian insurers, 16 non-Indian insurers and 75 provident societies were carrying on life insurance business in India. Life insurance business was confirmed mainly to cities and better off segments of the society. On 19th January 1956 the management of life insurance business of 245 Indian and foreign insurers and provident societies, then operating in India, was taken over by the Central Government and then nationalized on 1st September 1956. An Act of Parliament, viz. LIC Act, formed LIC in September 1956, with capital contribution of Rs. 5 crore from the Government of India. The then Finance Minister, Shri S.D.Deshmukh, while piloting the bill for nationalization, outlined the objectives of LIC thus: to conduct the business with utmost economy, in a spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the policy holders consistent with safety of the capital; to render prompt and efficient service to policy-holders, thereby making insurance of recommendations of the Administrative Reforms Commission as under:
• • •

• • • •

To spread life insurance much more widely and in particular to the rural areas and to the socially and economically backward classes To making mobilization of people’s savings by making insurance linked savings adequately attractive. To bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust without losing sight of the interest of the community as a whole To conduct business with utmost economy and with the full realization that money belongs to the policy- holders. To act as trustees of the insured public in their individual and collective capacities. To meet various life insurance needs of the community that would arise in the changing social and economic environment. To promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of corporate objectives.






lianz Life Insurance Company Limited . a, Airport Road , YerawadaPune 411 006

Mr. Sam Ghosh

Tel : 020-4026666 Fax : 020-4026789 . Tel : 022 5678 3333 Fax: 022 5678 3232

Life Insurance Co. Ltd , Vaman Centre, na Road, eri-Kurla Road, E), MUMBAI-400 059. andard Life Insurance Co. Ltd ar", 2nd floor, 'A' Wing, Kondivita Road Junction Andheri-Kurla dheri (East) Mumbai 400 059.

Mr. Vikram J. Mahmi

Mr. Fabien Jeudy

Mr.D.M. Satwalekar

Mr. Nick Taket

Tel : 022-67516666 Fax: 022-2822 8844

udential Life Insurance Co. Ltd Ms. Shikha Sharma ulife Towers , 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai

Mr. Azim Mithani

Tel :022-56621996 Fax: 022-56622031 Tel : 080-25328000 Fax: 080-25559764

ya Life Insurance Company Ltd. Mr.Kshitij Jain ya Home, 5th Floor, #22 Mahatma gandhi Road Bangalore-560 001.

Ms. Hemamalini Ramakrishnan Mr. Gorakh Nath Agarwal

rance Corporation of IndiaYogakshema, Jeeva Bima Marg, Post Box Shri T S. Vijayan 3 MUMBAI 400 021

w York Life Insurance Co. Ltd Mr. Gary R. Benett r, DLF Square , Jacaranda Marg, DLF City , Phase-II, GURGAON

Tel 56598701;56598702 Fax: 22824386 E-Mail ; chairman@licindi Mr.John Charles Poole Tel : 0124-2561717 Fax: 0124-2561764 Mr. K. P. Sarma

India Insurance Company Pvt. Ltd. Mr. Rajesh Relan Seshamahal, No. 5, Vani Vilas Road , Basavanagudi, BANGALORE-

ahindra Old Mutual Life Insurance Limited Mr. Gaurang Shah Penisula Chambers, Corporate Park, o Kadam Park, Lower Parel, AI-400 013. Insurance Co. Ltd Mr.Uday Sankar Roy orrison Building, 2nd Floor, 16, Bank Street, Fort Mumbai-400 023.

Mr. A. Venkatasubramanian

Tel : 080-26438638 Fax: 080-26521970 Toll Free No. 1-600-44-69 Tel : 022-5663 5000 Fax:022-5663 5111

Mr. I Sambasiva Rao

Tel : 022-56392000 Fax: 022-56621471

Life Insurance Company Limited Floor, Peninsula Tower, Corporate Park o Kadam Marg, Lower Parel, AI 400 013. Life Insurance Company Limited. Midas, Sahar Plaza Complex, Kohinoor Hotel, Andheri Kurla Road, East) ,Mumbai-400 059 fe Insurance Co. India Pvt. Ltd. JMD Regent Square, Road, Gurgaon - 122001 dia Life Insurance Co, Ltd. dia Bhawan, ala Complex, 226024 m Life Insurance Co, Ltd. Office : 3-6-478, 3rd Floor, Anand Estate, Liberty Road, t Nagar, Hyderabad - 500029

Mr.Trevor Bull

Mr. Heerak Basu

Tel : 022-56516000 Fax : 022-56550711

Mr. P Nandagopal

Ms. Pournima Gupte

Tel : 022-30883444 Fax: 022-30886587

Mr. Albert Paterson

Mr. Chandan Khasnobis Mr. K K Dharni

Tel: 0124-280 4141 Fax: 0124-280 4151 Tel: 0522-2337777 Fax: 0522-2378200

Mr. N.C. Sharma

Mr R Duruvasan

Mr N S Sastry

Tel: 040-23434466-72 Fax: 040-23434488

Above as shown in the table, there are 16 major players in the Indian insurance industry. But as far my study is concerned we will focus on the major life insurance companies in Indian insurance industry which are on the top most position in Indian market. In my study I comprise the Kotak life insurance with one Public sector Company and other Private sector companies. These companies are:
• • • •

Life Corporation of India ICICI Prudential HDFC Standard Life Kotak life insurance

Kotak Mahindra Life Insurance :

Kotak Mahindra is one of India's leading financial institutions was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. It's been a steady and confident journey to growth and success.

Fig. Growth Trend of Kotak Group Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of over Rs. 2,500 crore, employs around 6,700 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 250 cities and towns in India and offices in New York, London, Dubai and Mauritius. The Group services over 1.6 million customer accounts. CORPORATE IDENTITY OF KOTAK MAHINDRA GROUP Some facts about Old Mutual Fund

Old Mutual was established more than 150 years ago and has developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance operations. The company

• • • •

serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. Operations in the United Kingdom are focused on wealth management, through Garrard as one of the leading private client stock broking businesses in the UK. The Old Mutual Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups. Old Mutual has introduced innovative products in South Africa. It has vast experience customer service and superior training skills for life agents to get high productivity.

Group Companies of Kotak and International Subsidiaries
• • • • •

Kotak Mahindra Bank Ltd. Kotak Mahindra Capital Company Ltd. Kotak Mahindra Prime Ltd. Kotak Securities Ltd. Kotak Mahindra Asset Management Company

Kotak Mahindra Bank Ltd. The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank - Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. It's banking operations offers a central platform for customer relationships across the group's various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. Head office address: 36/38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400021, Tel no.: (022) 56581100, Website: Kotak Mahindra Capital Company Ltd.
• • •

Kotak Investment Banking* (KIB) is India's premier Investment Bank Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities business of the Kotak Mahindra Group **(KI), Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak Investment Banking's core business areas include Equity Issuances, Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business.

Its strength lies in understanding the clients' businesses backed by a strong research team and an extensive distribution network, which spans a wide variety of investors across the country. It is also the first Indian Investment Bank to be registered with the Securities & Futures Authority in the UK (through our wholly owned subsidiary) and the National Association of Securities and Dealers in the USA. Its the first Indian Investment Bank to be appointed by the Government of India as a Colead Manager in their international divestment of Gas Authority of India Ltd through a GDR offering. Kotak Investment Bank today well positioned in an increasing globalize environment to provide full service to its clients based either in India or overseas.

Head office address: Bakhtawar, 1st floor, 229, Nariman Point, Mumbai 400021, Tel no.: (022) 56341100, Website: International Subsidiaries Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) – the Investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group registered in the US providing service to both Institutional investors and High Net worth Clients in the US for their investments into Indian markets. KOTAK LIFE INSURANCE Kotak life insurance old mutual fund is the joint venture of Kotak Mahindra and Mutual fund with a ratio of 76:24.kotak Mahindra is in Indian companies running by Mr. Uday Kotak and old Mutual Fund is a South Africa based company. Now company has various advantages over its competitor.
• • • • • •

Well trained and quality advisors Consultative selling process Complete product range High technology support Superior customer service To be achieved through

As shown in the company profile company is growing at a rapid rate. The growth of company can be seen with the help of these points.
• •

65 Branches in 40 cities and going to open 20 new branches in different states. 10000 + Life Advisors

• • •

1500 + Employees Ranks 2nd in terms of Average Premium per Policy Ranks 4th in Total Advertising Awareness

Company has various plans for its customer as per the need of its customer. It has individual plans, group plans and other many more plans with very low premium to attract its customer from its competitive companies. The plans of Kotak life insurance old mutual fund is: PLANS: For Individuals
• • • • • • • • • • • •

Kotak Term Plan Kotak Preferred Term Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (unit linked) Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Premium Return Plan

For Group
• • • • •

Employee Benefit Kotak Term Group Plan Kotak Credit Term Plan Kotak Complete Cover Group Plan Kotak Superannuation Group Plan

Above shown are the various plans of Kotak life insurance old mutual fund. But the major plans of company are Kotak Headstart child plan, Kotak safe investment plan-II, Kotak Flexi plan, and Kotak Easy growth plan. In these plans there is various funds which are performing in better way and giving the better return to its customers. ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors. The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited PLANS: Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions : Save'n'Protec
• • • • • •

CashBak LifeTime Super & LifeTime Plus LifeLink Super Premier Life Gold InvestShield Life New InvestShield Cashbak

Protection Solutions:
• •

LifeGuard HomeAssure

Education insurance plans


Retirement Solutions:
• • • •

ForeverLife LifeTime Super Pension LifeLink Super Pension Immediate Annuity

Health Solutions:
• • • • •

Health Assure and Health Assure Plus Cancer Care Diabetes Care Hospital Care Crisis Cover

Group Insurance Solutions:
• • • •

Group Gratuity Plan Group Superannuation Plan Group Immediate Annuities Group Term Plan

These are the various plans given by the ICICI Pru. to its customers. These plans are performing under various funds which are operated by expert fund managers

HDFC STANDARD LIFE HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity in the joint venture. Key strengths : Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions : HDFC have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Track Record so far Plans:
• • • • • • • • • • • • •

HDFC Unit Linked Endowment, HDFC Unit Linked Endowment Plus, HDFC Unit Linked Young Star, HDFC Unit Linked Young Star Plus, HDFC Unit Linked Endowment Suvidha, HDFC Unit Linked Endowment Suvidha Plus, HDFC Unit Linked Young Star Suvidha, HDFC Unit Linked Young Star Suvidha Plus, HDFC Group Unit Linked Plan HDFC Unit Linked Pension, HDFC Unit Linked Pension Plus HDFC Group Unit Linked Plan - for Defined Contribution Superannuation Schemes HDFC Group Unit Linked Plan

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