Human Resource Management

You often see phrases like these in the annual reports of major
businesses:
Our people are our greatest asset
Nothing is more important than our employees

Effective human resource management has become more important in

recent times. Here are some reasons why:
Most businesses now provide services rather than produce goods
people are the critical resource in the quality and customer service
level of any service business
Competitiveness requires a business to be efficient and productive
this is difficult unless the workforce is well motivated, has the
right skills and is effectively organized
The move towards fewer layers of management hierarchy (flatter
organizational structures) has placed greater emphasis on
delegation and communication
As a result, if a business is to be successful and achieve its objectives,
then it needs to manage its human resources effectively. So step forward
human resource management!

Human resource management is usually shortened to HRM. It is

defined by the CIPD as:

The design, implementation and

maintenance of strategies to manage
people for optimum business
performance
In other words, HRM is about how people are managed by a business in
order to meet the strategic objectives of the business. The functional
objectives set for HRM need to be consistent with the corporate
objectives.
Human Resource Management is the core function of all organizations.
It ensures that companies have the necessary talent required to operate
effectively. It manages the recruitment and selection of new employees
as well as the training and development of new and current employees.
Additionally, it establishes and administers compensation plans and
employee benefit programs.

HRM is the organizational function that deals with issues related to

people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.
HRM is also a strategic and comprehensive approach to managing
people and the workplace culture and environment.
Effective HRM enables employees to contribute effectively and
productively to the overall company direction and the accomplishment
of the organization's goals and objectives.
HRM is moving away from traditional personnel, administration, and
transactional roles, which are increasingly outsourced.
HRM is now expected to add value to the strategic utilization of
employees and that employee programs impact the business in
measurable ways. The new role of HRM involves strategic direction and
HRM metrics and measurements to demonstrate value.

From the smallest to the largest organization, it is vital that the human
resources be managed effectively for the organization to prosper and

survive. If these human resources are neglected or mismanaged, the

organization is unlikely to do well and may even fail.
Hence Human resource management (HRM) has gained increasing
importance and is today viewed as a fundamental aspect of management.
Human resource management has become task number one for many
organizations.

Four Fundamental principles of HRM

 Human resources are the most important assets an organization has and
their effective management is the key to its success.

Organizational success is most likely to be achieved if the personal

policies and procedures are closely linked to corporate objectives and
strategic plans.

Organizational culture, values and climate

significantly influence managerial behavior and exert a major influence
on the achievement of excellence.

Human resource management is concerned with integration- getting all

members of the organization involved and working together with a sense
of common purpose.

TOOLS OF HUMAN
RESOURCE MANAGEMENT

The key is to remember that HRM is a strategic approach. HRM uses a

variety of tools to help meet the strategic needs of the business, each of
which needs together in an integrated way. The key tools are:
Workforce planning

Recruitment & selection

 Training & development

Rewarding and motivating staff

 Communication

Roles and responsibilities (organizational structures)

Emergence of insurance
sector

There are three eras which has passed till the 21st century.
Colonial Era
Nationalization
Liberalization

Colonial Era
In the colonial era the 1st insurance company was established in the year
1850. The company is named by The Insurance Office In 1667
Nicholas Barbon was instrumental in forming the first actual insurance
company. It was known as "The Insurance Office".
So, what happened to the first insurance company, The Insurance
Office? Well, nobody is exactly sure, but it eventually went out of
business. The oldest documented insurance company today dates back to
1710. Originally known as the Sun Fire Office, it started not all that long
after the original Fire Office, and probably while the first was still in
business. The Sun Fire Office, through many mergers and acquisitions,
is today known as Royal & SunAlliance, Britain's largest insurance
company. It was observed that there must be some rules and regulations
to be implemented so to avoid the everyones choice of plan. So for the
smooth and disciplinary functioning The Insurance Act was
implemented in the year 1938.

Nationalization
Nationalization (British English spelling nationalization) is the process
of taking a private industry or private assets into public ownership by a
national government or state. Nationalization usually refers to private

assets, but may also mean assets owned by lower levels of government,
such as municipalities, being transferred to the public sector to be
operated and owned by the state. The opposite of nationalization is
usually privatization or de-nationalization, but may also be
municipalization. Industries that are usually subject nationalization
include transport, communications, energy, banking and natural
resources though there are other areas and there have even been calls for
the nationalization of the legal service.
A renationalization occurs when state-owned assets are privatized and
later nationalized again, often when a different political party or faction
is in power. Nationalization has been used to refer to either direct stateownership or management of an enterprise or to a government acquiring
a large controlling share of a nominally private, publicly listed
corporation.

Liberalization
The world has become a global village. The Liberalisation, Privatization
and Globalisation (LPG) wave has sweeped across the global
economies. The two pillars of India's economic policy before 1991 have
been protection and public sector.

Thus the New Economic Policy 1991 was a departure from the regulated
planned economic tradition to that of LPG movement. After nearly a
decade of intense debate a consensus developed in India for ending the
public sector monopoly in insurance and opens the industry to private
sector participants subject to suitable prudential regulation.
Today, to the credit of combined efforts of both the regulator and
industry players, benefits of insurance are widely acknowledged, public
confidence in the industry has been very much restored and the industry
has become more dynamic. Following the recent reform in the insurance
sector, Indian insurance industry is moving ahead.
The main element in the reform process was the opening up of the
insurance industry in 2000 with foreign direct investment permitted up
to 26 per cent of equity. With this change global insurers have rushed
into the country to capture the market. The reforms have two objectives.
One to capture a vast untapped population under suitable insurance
cover. The second, to create a more efficient and competitive insurance
industry and elevate the performance of insurance companies.
The Insurance Regulatory and Development Authority (IRDA) since its
incorporation as a statutory body in April 2000 has regulated the opening
of insurance sector which has seen 15 life and 23 non life private
companies launch their operations in India In the post liberalization

phase, insurance industry has witnessed beneficial effects of

competition.
The market for pension product is developing and there is a unit linked
insurance plan generated by private players. Opening of the insurance
market to private and foreign players and a conversion of a monopolistic
market to a liberalized one has transformed the insurance industry in
India.
Best international practices in service and operational efficiency through
use of latest technologies, need based schemes etc. are available to
customer. The credit for enlarging the insurance sector goes to both the
public and private sector.
While the private sector has come up with aggressive marketing strategy
to establish their presence, the public sector has in turn redrawn its
priorities and revamped their marketing strategies to reach out to greater
mass of people It is in this backdrop of liberalisation of insurance sector
the paper has analysed the new dimensions post liberalisation like
raising of foreign direct limit, micro insurance in rural market,
bancassurance, reinsurance and alternate risk transfer (ATR).

History of insurance
In some sense we can say that insurance appearssimultaneously with the
appearance of human society. We know of two types of economies in
human societies: natural or non-monetary economies (using barter and
trade with no centralized nor standardized set of financial instruments)
and more modern monetary economies (with markets, currency,
financial instruments and so on). The former is more primitive and the
insurance in such economies entails agreements of mutual aid. If one
family's house is destroyed the neighbours are committed to help
rebuild. Granaries housed another primitive form of insurance to
indemnify against famines. Often informal or formally intrinsic to local
religious customs, this type of insurance has survived to the present day
in some countries where a modern money economy with its financial

instruments is not widespread.Turning to insurance in the modern sense

(i.e., insurance in a modern money economy, in which insurance is part
of the financial sphere), early methods of transferring or

distributing risk were practiced by Chinese and Babylonian traders as

long ago as the 3rd and 2nd millennia BC, respectively. Chinese
merchants travelling treacherous river rapids would redistribute their
wares across many vessels to limit the loss due to any single vessel's
capsizing. The Babylonians developed a system which was recorded in
the famous Code of Hammurabi, c. 1750 BC, and practiced by early
Mediterranean sailing merchants. If a merchant received a loan to fund
his shipment, he would pay the lender an additional sum in exchange for
the lender's guarantee to cancel the loan should the shipment be stolen or
lost at sea.
Achaemenian monarchs of Ancient Persia were the first to insure their
people and made it official by registering the insuring process in
governmental notary offices. The insurance tradition was performed
each year in Norouz (beginning of the Iranian New Year); the heads of
different ethnic groups as well as others willing to take part, presented
gifts to the monarch. The most important gift was presented during a
special ceremony. When a gift was worth more than 10,000 Derrik
(Achaemenian gold coin) the issue was registered in a special office.

This was advantageous to those who presented such special gifts. For
others, the presents were fairly assessed by the confidants of the court.
Then the assessment was registered in special offices.The purpose of
registering was that whenever the person who presented the gift
registered by the court was in trouble, the monarch and the court would
help him. Jahez, a historian and writer, writes in one of his books on
ancient Iran: "[W]henever the owner of the present is in trouble or wants
to construct a building, set up a feast, have his children married, etc. the
one in charge of this in the court would check the registration. If the
registered amount exceeded 10,000 Derrik, he or she would receive an
amount of twice as much."
A thousand years later, the inhabitants of Rhodes invented the concept of
the general average. Merchants whose goods were being shipped
together would pay a proportionally divided premium which would be
used to reimburse any merchant whose goods were deliberately
jettisoned in order to lighten the ship and save it from total loss.
The ancient Athenian "maritime loan" advanced money for voyages with
repayment being cancelled if the ship was lost. In the 4th century BC,
rates for the loans differed according to safe or dangerous times of year,
implying an intuitive pricing of risk with an effect similar to insurance.
The Greeks and Romans introduced the origins of health and life
insurance c. 600 BCE when they created guilds called "benevolent

societies" which cared for the families of deceased members, as well as

paying funeral expenses of members. Guilds in the Middle Ages served
a similar purpose. The Talmud deals with several aspects of insuring
goods. Before insurance was established in the late 17th century,
"friendly societies" existed in England, in which people donated
amounts of money to a general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with
loans or other kinds of contracts) were invented in Genoa in the 14th
century, as were insurance pools backed by pledges of landed estates.
Some forms of insurance had developed in London by the early decades
of the 17th century. For example, the will of the English colonist Robert
Hayman mentions two "policies of insurance" taken out with the
diocesan Chancellor of London, Arthur Duck. Of the value of 100 each,
one relates to the safe arrival of Hayman's ship in Guyana and the other
is in regard to "one hundred pounds assured by the said Doctor Arthur
Ducke on my life". Hayman's will was signed and sealed on 17
November 1628 but not proved until 1633. Toward the end of the
seventeenth century, London's growing importance as a centre for trade
increased demand for marine insurance. In the late 1680s, Edward Lloyd
opened a coffee house that became a popular haunt of ship owners,
merchants, and ships' captains, and thereby a reliable source of the latest
shipping news. It became the meeting place for parties wishing to insure

cargoes and ships, and those willing to underwrite such ventures. Today,
Lloyd's of London remains the leading market (note that it is an
insurance market rather than a company) for marine and other specialist
types of insurance, but it operates rather differently than the more
familiar kinds of insurance.
The first insurance company in the United States underwrote fire
insurance and was formed in Charles Town (modern-day Charleston),
South Carolina, in 1732. Benjamin Franklin helped to popularize and
make standard the practice of insurance, particularly against fire in the
form of perpetual insurance. In 1752, he founded the Philadelphia
Contributionship for the Insurance of Houses from Loss by Fire.[19]
Franklin's company was the first to make contributions toward fire
prevention.
In the United States, regulation of the insurance industry primary resides
with individual state insurance departments. The current state insurance
regulatory framework has its roots in the 19th century, when New
Hampshire appointed the first insurance commissioner in 1851.
Congress adopted the McCarran-Ferguson Act in 1945, which declared
that states should regulate the business of insurance and to affirm that
the continued regulation of the insurance industry by the states is in the
public's best interest. The Financial Modernization Act of 1999,
commonly referred to as "Gramm-Leach-Bliley", established a

comprehensive framework to authorize affiliations between banks,

securities firms, and insurers, and once again acknowledged that states
should regulate insurance.
Whereas insurance markets have become centralized nationally and
internationally, state insurance commissioners operate individually,
though at times in concert through the National Association of Insurance
Commissioners. In recent years, some have called for a dual state and
federal regulatory system (commonly referred to as the Optional federal
charter (OFC)) for insurance similar to the banking industry.

History of insurance in
India
In India, insurance has a deep-rooted history. It finds mention in the
writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and
Kautilya ( Arthasastra ). The writings talk in terms of pooling of
resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. This was probably a pre-cursor to modern
day insurance. Ancient Indian history has preserved the earliest traces of

insurance in the form of marine trade loans and carriers contracts.

Insurance in India has evolved over time heavily drawing from other
countries, England in particular.1818 saw the advent of life insurance
business in India with the establishment of the Oriental Life Insurance
Company in
Calcutta. This Company however failed in 1834. In 1829, the Madras
Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in
the last three decades of the nineteenth century, the Bombay Mutual
(1871), Oriental (1874) and Empire of India (1897) were started in the
Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life
Assurance, Royal Insurance, Liverpool and London Globe Insurance and
the Indian offices were up for hard competition from the foreign
companies.
In 1914, the Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912
was the first statutory measure to regulate life business. In 1928, the
Indian Insurance Companies Act was enacted to enable the Government
to collect statistical information about both life and non-life business
transacted in India by Indian and foreign insurers including provident
insurance societies. In 1938, with a view to protecting the interest of the

Insurance public, the earlier legislation was consolidated and amended

by the Insurance Act, 1938 with comprehensive provisions for effective
control over the activities of insurers.
An Ordinance was issued on 19th January, 1956 nationalising the
Life Insurance sector and Life Insurance Corporation came into
existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian
insurers as also 75 provident societies245 Indian and foreign insurers
in all. The LIC had monopoly till the late 90s when the Insurance sector
was reopened to the private sector. The history of general insurance
dates back to the Industrial Revolution in the west and the consequent
growth of sea-faring trade and commerce in the 17th century. It came to
India as a legacy of British occupation. General Insurance in India has
its roots in the establishment of Triton Insurance Company Ltd., in the
year 1850 in Calcutta by the British. In 1907, the Indian Mercantile
Insurance Ltd, was set up. This was the first company to transact all
classes of general insurance business.
In 1968, the Insurance Act was amended to regulate investments and
set minimum solvency margins. The Tariff Advisory Committee was
also set up then. In 1972 with the passing of the General Insurance
Business (Nationalisation) Act, general insurance business was
nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National

Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd and the United India Insurance
Company Ltd. The General Insurance Corporation of India was
incorporated as a company in 1971 and it commence business on
January 1sst 1973.
Following the recommendations of the Malhotra Committee report, in
1999, the Insurance Regulatory and Development Authority (IRDA) was
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April, 2000.
The key objectives of the IRDA include promotion of competition so as
to enhance customer satisfaction through increased consumer choice and
lower premiums, while ensuring the financial security of the insurance
market.
The IRDA opened up the market in August 2000 with the invitation
for application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of
companies for carrying on insurance business to protection of
policyholders interests.

In December, 2000, the subsidiaries of the General Insurance

Corporation of India were restructured as
independent companies and at the same time GIC was converted into a
national re-insurer. Parliament passed a bill de-linking the four
subsidiaries from GIC in July, 2002.
Today there are 24 general insurance companies including the ECGC
and Agriculture Insurance Corporation of India and 23 life insurance
companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate
of 15-20%. Together with banking services, insurance services add about
7% to the countrys GDP. A well-developed and evolved insurance
sector is a boon for economic development as it provides long- term
funds for infrastructure development at the same time strengthening the
risk taking ability of the country.

Role of HRM
In
ICICI Prudential
As part of this assignment we look forward to know of how Human
Resource Planning HRP is implemented in ICICI Prudential Life
Insurance Company.
Here we discuss by anticipating the usefulness of Human Resource of
ICICI Prudential in present and future strategic management and its
importance. It also tells us about the impact of HR planning on strategic
plans of ICICI Prudential. Besides discussing of how evaluation process
of present legal requirements, it also describes the ICICI Prudentials
process of recruitment, selection of employees from external sources
depending upon the company requirements and legislations. ICICI
Prudential has got its own style of organizing the business process
representing a specific kind of cultures and sub-cultures within the
organization. This in turn affects the recruitment and retention processes
of employees of the organization. Various Issues were taken in to
consideration to maintain the work life balance and also different kinds
of practices in work that keep changing often. As it an insurance

company which deals with huge financials handlings there might be

many grievance situations pertaining to the staff and customer as well.
Many issues like fraudulent, Malpractices and other issues of
disciplinary may lead to dismissals. These may further lead complex
issues; ICICI prudential has taken necessary actions against such
obligations with the help of external agencies like ACAS, Employment
Tribunals.
Apart from all the above we are also going know how effectively HRP
of ICICI Prudential has managed in performing well at all levels using
external resources and technological & Cultural benefits that made the
work practices easier.
ICICI PRUDENTIALS STRATEGIC HUMAN RESOURCES:
STRATEGIC CAPABILITY OF ICICI PRUDENCIAL:

ICICI Prudential Life has got excellent strategic capabilities in terms of

Resource-based, Dynamic Capabilities and was successful in developing
the strategic capabilities.
Resource Based Strategy in ICICI Prudential: It has got various kinds
of physical sources such the building and branches of ICICI Prudential
are spread across the world. In India there are about 1900 branches and
advisor base of 210,000 which are well equipped with all infrastructures
furnished for effective running of organization. Moreover enough
utilities are provided for the efficiency of service providing to the

customers as well as the employees of the organization. Raw materials

like broachers and product portfolios are well designed to maintain the
strategic pathway in production processes. As it is a service based
company employees are the key asset to the organization. Financial
resources of ICICI Prudential are organized with Capital investments
and enough flow of funds in terms of cash through Creditors and debtors
of the organization.
Intellectually the company has a good reputation and brand image in
the market and they have got patents of their products along with
systems and data storage devices. ICICIs employees play a vital role in
business process linked with many advisors and franchises that have
thorough knowledge & skills servicing the customers.
Types of Resources and competencies in ICICI Prudential:

Threshold resources of ICICI had appropriate logistics which satisfy

the minimum requirements of the customers and there by survive in the
market. ICICI Prudential has Unique resources yet provide unique
product with exceptional services gaining competitive advantage adding
value & inimitable thus Winning Core Competencies against the
competitors. The company rarely but has got the Redundancy
competencies in solving issues of timing fulfilling the need of
customers.

According to Hamel, and Prahalad, 1994, ICICI Prudential has gained

Core competency with their skills and expertise products and they
designed benefits to customers moving from core products of Life
Insurance to Health Insurance segment where they could find target
customers and satisfy them by providing benefits at the end products.
DYNAMIC CAPABILITIES OF ICICI PRUDENTIAL:

ICICI Prudential showed its dynamic capability by renovating its

products and services at a wide range. It enhanced features of its services
using innovation considering environmental aspects and technological
changes.
ICICI Prudential on the other hand has Perceived Strategic Management
roles extensively to match the requirements along with internal and
external organizational skills and competences.
The dynamic approach of ICICI Prudential has a concept called
Learning which is a ongoing process of implementation of tasks and
work performances that are improvised by knowing loops from past
experiences and retrieving it with new developments to it move on
faster.
Developing Strategic Capability in ICICI Prudential:

With the change in environment and market structure ICICI prudential

always kept identifying the customers specifications regarding the
services and the products. The company has enhanced its work process

through a strategic approach and developed it capabilities in a systematic

format to gain strategic advantage.
STRATEGIC CAPABILITY AND HUMAN RESOURCE OF ICICI
PRUDENTIAL:

According to Johnson, Scholes., and Whitting., 2008, Human Resource

of ICICI Prudential had chosen 4 ways of improvising employees
performance strategically enhancing organizational capability.
Targeted training and development in ICICI Prudential: Here the
training must be like an added value to the existing skills so as to
perform well thus attaining competence.
Staffing policies of ICICI Prudential are designed in such a way that the
people are developed and promoted so as to reach the targets at a faster
pace as compared to the others.
Organizational Learning of ICICI Prudential: ICICI Prudential gives
facts and figures of experiences, knowledge of approach and services
and measures to encourage the skills under common culture to achieve a
common goal.
ICICI Prudentials way of Developing People awareness: ICICI train
every individual within the organization to know the roles and
responsibilities there by work according with a purpose of strategy.

PUTTING TOGETHER AN HR STRATERGY OF ICICI PRUDENTIAL:

The human resource strategies of ICICI are distinguished by hard and

soft ways where in competences and resources comes under and a kind
of approach that motivates to gain competitive advantage.
Linking ICICI Prudential and HR Strategies of it:

In ICICI Prudential the HR strategy acts as a medium between the

resource based and the Business processes of the organization.
Johnson, Scholes, and Wittington., 2008 stated that Resource strategies
are inter-related both between the strategies of business and with every
departments pertaining to every individual in each divisions like Staff
oriented, technology, information system, finance related matters of
organization like ICICI Pru.
Apart from this ICICI Prudential has also set Long term and Short term
strategies for the improvement of the organization and the people in it.
Long term goals mainly comprise of future goals pertaining to leaders,
building up the workforce and the organization on the whole. Whereas
short term goals are those which are analyzed through GAP Analysis
which mostly deals with current skills and abilities and people,
performance appraisals, recruitment and reward system also with
improvement in HR practices and also bringing new practices within the
organization.

To fulfill the future needs of the organization strategies like recruitment

and training & development, renovating and restructuring, outsourcing
and other join collaborations helped ICICI Prudential reach its future
goals successfully.
Components of HR Strategy in ICICI Prudential:

The main key components of ICICIs HR strategy are given as follows:

ICICIs People as a Resource: This is a hard approach which comprise
of various functions of audit that involve people oriented core
competency for future policies, targets and goals are set here along with
performance appraisals, recruitment, retentions and training &
development in the workforce take place in this resource.
People and Behavioral approach of ICICI: This is a soft based
approach that deals with cultural aspects and issues of changing people
behavioral aspects along with changing style and environment.
ICICI Prus way of organizing people: In this Hr functions play a vital
role and indulge in various functions such as
regulatory, service providing managerial roles along with structure of
ICICI and its processes.
ICICI PRUDENTIALS ORGANIZATIONAL DESIGN:

It is the major part of Human resource strategies where in it deals with

cultural issues like norms, values and organizational paradigm. Besides

this it has regulates the responsibilities with linkages. ICICI Pru has got
a non-complex structure of cultures showing their uniqueness in it.
TYPES OF ORGANISATIONAL DESIGN IN ICICI Pru:

Task Culture in ICICI deals with various issues and problems from all
the departments of the company. This culture has working bodies and
group committees where in research and developmental activities take
part. It gather the whole of information from all the resources and
departmental functions to work on it specializes task teams are involved
for a short period of time who need work on a common task to meet
future requirements.
Power Culture is not much related to ICICI Prudential because this
kind of culture is one person based control who likes to take control and
react to situations.
Role Culture in ICICI: It is such a kind of culture where work roles an
organization are segregated to different levels and functions and
assigned to employees where they need to perform on their particular.
ICICI Prudential follows the role culture in operating its functions. This
improved not only the productivity but also the stability in performing
the roles increasing the revenues to the organization. Though role culture
states the weakness in adapting to changes in generating but ICICI
Prudential was even successful in it.

Apart from this there is also Person culture which mostly deals with
charities and this culture no way related with ICICI Prudential Life
Insurance.
ROLES OF DIFFERENT WORKER GROUPS IN ICICI PRUDENTIAL:

There are 3 different worker groups in ICICI and are stated below;
Core Workers in ICICI: This group consists of different functional
departments like sales, finance and human resource that are knowledge
based which directly contribute to the core business of ICICI.
Insource Workers in ICICI: This group of work deals with temporary
contractors, part-time employees and brokerage agents of ICICI
Prudential.
Outsource Work of ICICI: The IT related work, payroll processing and
taxation based work is outsourced to other companies which specialized
in those fields.
ICICI PRUDENTIAL METHOD OF ATTRACTING TALENT:

The recruitment is nothing but choosing the right candidate for the right
job considering specific skills and requirements of the organization.
In ICICI Prudential the basic task of HR is to know what exactly the
organization is looking out for and perfectly designing the job
description mentioning the roles and responsible.

Moving further the Human resource department should attract the

qualified candidates through diversified methods.
The Human Resource choose various sources of attracting people like
giving demos in the colleges and universities to pool out the talented
candidates and attract them by coding the success rates of the company
and winning stories of existing employees and also code the benefits and
growth within the company. The other mode of attracting experienced
talent is by showing the exciting working environment with a
challenging position along with good pay package and also hierarchal
growth in position of employees and many other benefits that are offered
by the company.
In attracting these relevant candidates ICICI Prudential does advertise
using Marketing methods internal and external means. The internal
means of attracting the candidates is through the referral forum set in
companys web page where in all the existing employees who are
willing to relocation or move to other department operating other
functional roles can look at that forum and know about vacant positions
in the company. They employees can even refer their friends or network
group who suit to that position.
External means such as Media & Paper advertisements, holding at the
public places and at times the company even approach consultancies
who supply manpower. Rewards were given to the prospective workers

motivating them to work efficiently and make them active in fulfilling

the requirements of the organization.
This can also quoted as a Marketing Exercise of the ICICI Prudential
through Recruitment process with which the company gets attention of
public towards it.
Recruiting Process of Talent hunt in ICICI Prudential:

The process of Recruitment is done through various factors and the

process is divided into 2 types:
Internal Recruitment
External Recruitment
Internal Recruitment Process in ICICI has referral forum in companys
web-page called ATLAS where in job requirements are posted. And for
few particular positions like Managerial roles in the organization they
trace out the performances of the existing employees and conduct a
review of selection process.
External Recruitment Process in ICICI has diversified methods such as
souring from Manpower suppliers, conducting interviews for the
candidates at university campuses.
ICICI Prudential often conducts walk-in interviews which is a time and
cost saving method. It had also tied-up with few online portals where

they can post the job requirements at a regular basis. Apart from these
ICICI prudential also pull out candidates from various sources like
Media & communication, advertisements and cross communication
sources.
Job Description and Person Specification in ICICI Prudential:

The job description comprises of roles and responsibilities of an

individual who is supposed to perform after getting a specific job using
skills and abilities. The candidate should be suitable enough to apply for
the required post. The person should be able to produce relevant
documental proofs of qualification and experiences. They need to health
enough to perform the job under pressures and flexible to work and
shouldnt have any criminal offenses in the past. Effective
communicational skills are must to perform any kind of job to
understand and interpret the work. Positive driven attitudes gives
positive results of the work.
Reviewing the Effectiveness of Recruitment in ICICI Prudential, the
HR department play major role in recruitment process. The effective
process of recruitment starts from screening the profile of the candidates
and filter them which are much suitable for the requirement. The
selected profiles were considered and called for preliminary interview
which will taken by the HR consultant. The candidates must fill the
application form furnishing their details. These details are stored in the
database of ICICI Prudentials called as PACE which consists of all the

details of the candidates who applied for the job. This help in easy
tracking candidate information.
SELECTION AND INDUCTING TALENT:

According to Torrington, et al derived 7 criteria for Selection process; it

is sure that ineffective selection process affects the organization in terms
of money, time and poor performances.'
In ICICI the selection method has assessment centers for selecting
professionals like managers and Technicians, Developers etc.,
Acceptable and appropriate test is conducted in ICICI Prudential to entry
level and senior manager posts. In the process of selection the
application forms and CV are considered with which they are shortlisted
for the interview. ICICI has self-assessment form where candidate assess
themselves to the post. Interview for selection can be done through
different ways depending upon the post and the requirement. Managers
in ICICI use stereotypic and halo-horn effects while selecting the
candidates.
After the selection process the selected candidates are inducted which
tells about the ICICI Prudentials Mission vision and what is their
limitation and what is the new employees role in performing work.
ICICI PRUDENTIAL CULTURE AND WORKING PRACTICES:

According to Edger S., and Hofstede, Keuning, 1998; Culture is defined

as The method of shared basic assumptions and beliefs with internal

as well as external values, by the employees of the organization to move

forward positively avoiding problems by restricting the taking for
granted environment.
Cultures are diversified in ICICI Prudential depending the location,
work pattern and the geographically into many sub-cultures. The
Marketing and sales department cultural approach is different from
finance department these are called as Sub- Cultures. As the company
has spread worldwide they follow different cultures for different cultures
but the goal stands the same. It has become important for the company
to organize cultures depending upon the hierarchy levels and working
areas and departments.
The environmental changes also made ICICI prudential to change their
cultural approach towards the customers. This made ICICI Prudential
receive award as Best cultural company of the year 2008.
According to Dobson, 1988, analyzing and changing Culture of ICICI
Prudential in terms of stories and rituals, formal activities avoiding
informal gossips that may affect the company. They undergo change in
recruitment process and redundancy policies of ICICI Prudential there
reorganize the things and communications methods, systems, procedure
and policies are even changed considering environmental and
technological effects.

CHANGING OF WORK PRACTICES OF ICICI PRUDENTIAL

shown a positive as well as a negative effect with which the reputation
of company changed going ups and down, employees were deprived
with marketing challenges and sales targets change made employees to
leave the organization frequently with which there was cost
effectiveness. All the factors like demographic, diversifying issues,
market position and place, customers perception and demand in the
market and even skills shortages.
The Work-Life Balance in ICICI Prudential:

According to David Clutterbuck, considering the culture and the work

practices the work-life balance will be affecting where employees need
to be satisfied with the job and maintain a equal balance between given
time and effort to work which gives life into other aspects.
Employees have to manage their work in a systematic manner so as to
benefit him as well as the organization. Social and economic changes
show the impact on work-life balance.
LEGAL REQUIREMENTS AND EXTERNAL AGENCIES OF ICICI
PRUDENTIAL:

There should be proper fairness in recruiting and selection process by

choosing the right candidates for the right post and documenting the
information of selection process effectively to avoid irrelevance in
selection. Proper protection also is given to employees of the

organization giving them insurance coverage and Medical benefits. The

information of all employment patterns is correctly maintained.
Proper guidelines and procedure are to be followed to with the help of
Equal Opportunities Commission (EOC), Commission for Racial
Equality (CRE) and also with ACAS-Advisory Conciliation and
Arbitration Services are linked to ICICI Pru.
Grievance in ICICI: According to Ankur, chabra., 2009 grievance are
the symptoms of enterprise conflicts. This is done when an employee
does any in disciplinary or fraudulent actions but at times if there any
unfair dismissal then this may lead to conflicts.
Role of ACAS:
The role of ACAS is:
Arbitration - Both the parties are called for third party investigation
about dispute.
Conciliation -Communication gaps are cleared bringing both together
and assisting them
Meditation - Same as arbitration but mediator has major in solving the
problem.

The different cultures with different sub cultures are implemented within
various functions and departments of the ICICI Prudential LIFE. ICICI
had Strong legal requirements and tie-ups with external agencies to
handle the conflicts in the Organization.
Objective Insurance Advisors or Financial Advisors play very Important
role for the Company, because this Advisors is the present and future
assets of the company , as they treated like a Partner of the ICICI
Prudential Life Insurance Company Ltd. . The Primary Objectives of
ICICI Prudential is to Improve Knowledge about the Insurance Industry
and How to achieve the goals and Objectives in order to face the
Competitive World by knowing Personality Development Skills . The
Secondary objective was to find out - 1. Why Batches getting Cancel ?
2. Exam Attendance 3. Exam Pass-out Ratio Our Project Recruitment
and Training and Development of ICICI Prudential which mainly focus
on finding out Importance of Training and Development for Insurance
Advisors. Theory and Concept Training generally refers to reaching of
new skill in professional field of the employee. Like an employee being
taught to operate another machine, or to perform a new operation in the
same machine. Development refers to enhancement of personal qualities
of the employee which do not have a one to one relationship with his
current job. It may be to help an employee to grow. Like stress
management techniques, yoga lessons, meditation exercises, soft skills
training, etc. While training is expected to reward the company

immediately in terms of better productivity of employee, Development

does not lead to a by immediate and tangible benefits to the company. At
the best, there might be some intangible benefits in the long run, like
improved motivation, loyalty, improved intra-departmental relations,
reduced absenteeism on medical ground etc. Dividing line between
training and development is expectation of immediate benefits. Thus, in
case a program, generally qualifying as development program, is directly
related to employees job skills, like Communication Skills course for
telephone attendant or receptionist, will qualify as training and not as
development. Same program for someone in back office would be
termed as Development Program. Definition of Training &
Development : Training & Development is any attempt to improve
current or future employee Performance by improving his performance
capabilities and potential through learning, usually by changing the
employees attitude or increasing his or her skills and knowledge .The
need for Training and Development is determined by the employees
performance deficiency, computed as follows Training & Development
Need = Standard Performance - Actual Performance Objectives of
Management Development Programs ( MDP ) : To make the managers Self Starters - Committed - Motivated - Result Oriented - Sensitive to
environment - Creating the self awareness - Develop inspiring leadership
styles - Teach them about effective Communication Meaning of
Recruitment: The human resources are the most important assets of an

organization. The success or failure of an organization is largely

dependent on the caliber of the people working therein. Without positive
and creative contributions from people, organizations cannot progress
and prosper. In order to achieve the goals or perform the activities of an
organization, therefore, we need to recruit people with requisite skills,
qualifications and experience. While doing so, we have to keep the
present as well as the future requirements of the organization in mind.

Definition of Recruitment: Recruitment is the process of

locating and encouraging potential applicants to apply for existing or
anticipated job openings. It is actually a linking function, joining
together those with jobs to fill and those seeking jobs. Recruitment,
logically, aims at (i) attracting a large number of qualified applicants
who are ready to take up the job if its offered and (ii) offering enough
information for unqualified persons to self-select themselves out( for
example, the recruitment ad of a foreign bank may invite applications
from chartered accountants who have cleared the CA examination in the
first attempt only.) Recruitment is the

discovering of potential applicants for actual or anticipated

organizational vacancies.
Recruitment Policies and Procedures: One of the first steps in planning
for the recruitment of employees into the organization is to establish
proper policies and procedures. A recruitment policy indicates the
organizations code of conduct in this area of activity.
A typical policy statement for recruitment may run thus : In its
recruitment activities, the company will :
Advertise all Vacancies internally
Reply to every job applicant promptly
Inform job applicants the basic details and job conditions of every job
advertised.
Process all applications with efficiency and courtesy
Seek candidates on the basis of their qualifications
Aim to ensure that every person invited for interview will be given a
fair and through hearing.

Company Profile About ICICI Prudential Life

Insurance Company Ltd: 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 equity
base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In 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
6,15,000 policies. The company has a network of about 56,000 advisors;
as well as 7 Banc assurance and 150 corporate agent tie-ups. For the past
four 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.

SOME FACTS :

1. Life Insurance Company (LIC) invested 26% in ICICI Prudential

Company.
2. Over 2,70,000 Financial Advisors which includes brokers,
housewives, Chartered Accountants, retired Persons, Businessmen,
Graduate and Undergraduate Students etc.
3. Over 16 million customers across the globe.
4. Present in 14 countries throughout Asia.
5. 75 years of experience in Asia.
6. Given Insurance to Titanic that sank.
7. Prudential sponsored Cricket World Cup in 1983.

Vision: - To make ICICI Prudential the dominant Life and Pensions

player built on trust by World-class People and Service. This is what
company hopes to achieve: ? Understanding the needs of customers and
offering them superior products and service? Leveraging technology to

service customers quickly, efficiently and conveniently. ? Developing

and implementing superior risk management and investment strategies

to offer sustainable and stable returns to Companys policyholders ?

Providing an enabling environment to foster growth and learning for
Companies employees ? And above all, building transparency in all
Companys dealings. The success of the company will be founded in its
unflinching commitment to 5 core values -------- Integrity, Customer
First, Boundary less, Ownership and Passion. Each of the values
describes what the company stands for, the qualities of people and the
way they work. Company believes that it is on the threshold of an
exciting new opportunity, where it can play a significant role in
redefining and reshaping the sector. Given the quality of parentage and
the commitment of its team, there are no limits to its growth.

PROMOTERS ICICI Bank: ICICI was founded by the World

Bank, Government of India and representatives of the private sector in
1955 to encourage and assist industrial development and investment in
India. ICICI Bank is Indias second-largest bank with total assets of

about Rs.112, 024 Crore and a network of about 450 branches and
offices and about 1750 ATMs. It offers a wide range of banking products
and financial services to corporate and retail customers through a variety
of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance,
venture capital, asset management and information technology. ICICI
Bank posted a net profit of Rs.1637 Crore for the year ended March 31,
2004. ICICI Banks equity shares are listed in India on stock exchanges
at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai
and the National Stock Exchange of India Limited and its American
Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).The Various segment of ICICI are . Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in
the UK and Europe, the US and Asia, provides retail financial services
products and services to more than 16 million customers, policyholder
and unit holders worldwide. As of June 30, 2004, the company had over
US $300 billion in funds under management. Prudential has brought to
market an integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the leading
European life insurance company with a vast network of 24 life and
mutual fund operations in twelve countries - China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,

Thailand and Vietnam. The company has six Bancassurance tie-ups,

having agreements with ICICI Bank, Federal Bank, South Indian Bank,
Bank of India, Lord Krishna Bank and some co- operative banks, as well
as over 150 corporate agents and brokers. It has also tied up with NGOs,
MFIs and corporates for the distribution of rural policies and
organizations like Dhan for distribution of Salaam Zindagi, a policy for
the socially and economically underprivileged sections of society. ICICI
Prudential has recruited and trained about 2,14,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-theart IT infrastructure to provide superior quality of service to customers.

PRODUCTS 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 27 products can be enhanced with up to 6 riders, to
create a customized solution for each policyholder.

Savings Solutions:
SecurePlus is a transparent and feature-packed savings plan that offers
3 levels of protection.
Cash Plus is a transparent, feature-packed savings plan that offers 3
levels of protection as well as liquidity options.

 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 childs marriage, expenses for a childs higher
education or purchase of an asset.
LifeTime & LifeTime II 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 II is a single premium Market Linked Insurance Plan which
combines life insurance cover with the opportunity to stay invested in
the stock market.
Premier Life is a limited premium paying plan that offers customers
life insurance cover till the age of 75.
InvestShield Life is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest.
InvestShield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest along
with flexible liquidity options.

 InvestShield Gold is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest along
with limited premium payment terms.
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.

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 childs life. SmartKid plans are also available in unit-linked formboth single premium and regular premium.

Retirement Solutions: Forever Life is a retirement product

targeted at individuals in their thirties. SecurePlus Pension is a flexible
pension plan that allows one to select between 3 levels of cover. Marketlinked retirement products LifeTime Pension II is a regular premium
market-linked pension plan Life Link Pension II is a single premium

market-linked pension plan. Invest Shield Pension is a regular

premium pension plan with a capital guarantee on the investible
premium and declared bonuses. ICICI Prudential also launched- Salaam
Zindagi, a social sector group insurance policy targeted at the
economically underprivileged sections of the society.

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 Prus 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 Prudential Life

offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
Accident & disability 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 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 Benefit: This rider option pays the sum assured under the
rider on death due to accident.
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.
Major Surgical Assistance Benefit: provides financial support in the
event of medical emergencies, ensuring benefits are payable to the life

What Company looks in Insurance Advisors?

ICICI Prudential Life Insurance Company Ltd. wants from the Insurance
Advisors:
a) Knowledge
b) Professionalism
c) Hard work
d) Patience
e) Sincerity
f) Target Achieve
What Insurance Advisors wants from IPRU?
Insurance Advisors wants from the IPRU:
a) Commission
b) Knowledge
c) Rewards and Recognition
d) No Target
e) Flexible Working hours
f) Trustworthiness
Why Training and Development is required?
a) How to pitch the Product
b) Provide Marketing knowledge to the Insurance Advisors c) To
motivate the Insurance Advisors
d) To Improve Communication Skills
e) To face the Competitive World
f) Lack of Professionalism
g) Increased Productivity / quality of work/ Low Business
h) Improve morale of the workforce

CONCLUSION:

ICICI Prudential Life Insurance has effective implemented it Human

Resource strategies in HR planning going out with an outstanding
resource based strategy and also shown dynamic capability and
developing them. Human resource strategies are well linked to the
Business process of ICICI Prudential and designed the organization in
such way that goes with well worker groups. Practices like Attracting,
Recruitment and selection procedures of ICICI Prudential have
diversified means fulfilling the requirements of the company perfectly.