A

Project
ON
“IMPACT OF COMPANIES IN THE DEVELOPMENT OF
AN ECONOMY”
Submitted to

University of Mumbai for partial completion of the

Degree of Banking

Under the Faculty of Commerce

By

TEJAS DATTATRAY DASHPUTRA

Roll No.:- 30

Under the Guidance of

PROF. RINKY RAJWANI
B.K. BIRLA COLLEGE OF ARTS, SCIENCE AND
COMMERCE (AUTONOMOUS), KALYAN
2020-2021
B.K. BIRLA COLLEGE OF ARTS, SCIENCE AND COMMERCE
(AUTONOMOUS), KALYAN

CERTIFICATE

This is to certify that Ms/ Mr. TEJAS DATTATRAY DASHPUTRA has word
ked and duly completed her/his project for the degree of Bachelor in Management
Studies under the Faculty of Commerce and her/his project is entitled, “IMPACT
OF COMPANIES IN THE DEVELOPMENT OF AN
ECONOMY” under my Supervision.

Name and Signature of Guiding Teacher

Date of submission:
 DECLARATION

I, the under signed Miss/Mr. TEJAS DATTATRAY DASHPUTRA by, declare that the work

embodied in this project work titled , “IMPACT OF COMPANIES IN THE

DEVELOPMENT OF AN ECONOMY “ forms my own contribute on to the research work
carried out under the guidance of PROF. RINKY RAJWANI is a result of my own

research work and has not been previously submitted to any other University for any other Degree to this or any
other University.

Wherever reference has been made to previous works of others, it has been

Clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in accordance
with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher

 INDEX

SR NO. CONTENTS

HISTORY

1. 1.1 CHAPTER1 INTRODUCTION

1.2 Background of the study

1.3 Problem Statement

1.4 Research objectives

1.5 Research Questions

1.6 Scope of the study

1.7 Definition of Key Terms

2 CHAPTER2 Review of Literature

2.1 Introduction

2.2 Review of Related literature

2.3 Underlying Theory

2.4 Research Framework

2.5 Hypotheses development

3 CHAPTER 3 RESEARCH METHODOLOGY

3.1 Introduction

3.2 Research Design

3.3 Population
 The sampling Technique
3.4
Data Collection Procedure
3.5
Research Instruments
3.6
Format of Questionnaire
Statistical Method
.

4 CHAPTER 5 DATA ANALYSIS

5 CHAPTER 6 SUMMARY OF FINDING
6 CHAPTER 7 CONCLUSION
Context of the Topic:

The role of is changing as fast as technology and the global

marketplace. Historically, the Department was viewed as administration,
kept personal files and other records, managed the hiring process, and
provided other administrative support to the business. Those times have
changed.
The positive result of these changes is that professionals have the
opportunity to play a more strategic role in the business. The challenge
for managers is to keep up to date with the latest innovations —
technological, legal, and otherwise.
This special report will discuss the best practices in management
for 2010 — in other words, how managers can anticipate and address
some of the most challenging issues this year. This report will give
you the information you need to know about these current challenges
and how to most effectively manage them in your workplace.
Insurance is an increasingly broadening term with which an
organization, or other human system describes the combination of traditionally
administrative personnel functions with acquisition and application of skills,
knowledge and experience, Employee Relations and resource planning at
various levels. The field draws upon concepts developed in
Industrial/Organizational Psychology and System Theory. Human resources
has at least two related interpretations depending on context. The original
usage derives from political economy and economies, where it was
traditionally called labor, one of four factors of production although this
perspective is changing as a function of new and ongoing research into
more strategic approaches at national levels. This first usage is used more in
terms of human resources
development's, and can go beyond just organizations to the level of
nations. The more traditional usage within corporations and businesses
refers to the individuals within a firm or agency, and to the portion of
the organization that deals with hiring, firing, training, and other
personnel issues, typically referred to as Insurancemanagement. This article
addresses both definitions.
The objective of human resource’s development (the `s' is
important in human resource`s' in that it underscores
individuality/variability) is to foster human resourcefulness tough enlightened
and cohesive policies in education, training, health and employment at all
levels, from corporate to national (Lawrence 2000). Human resource
management's objective, on the other hand, is to maximize the return on
investment from the organization's human capital and minimize financial
risk. It is the responsibility of human resource managers in a corporate
context to conduct these activities in an effective, legal, fair, and consistent
manner.

Human resource management serves these key functions:

1. Recruitment & Selection,
2. Training and Development,
3. Performance Evaluation and Management,
4. Promotion,
5. Redundancy,
6. Industrial and Employee Relations,
7. Record keeping of all personal data.,
8. Compensation, pensions, bonuses etc. in liaison with Payroll,
9. Confidential advice to internal 'customers' in relation to
problems at work,
10.Career development.
INTRODUCTION:

In organizations, in terms of sex and selection it is important to

consider carrying out a thorough job analysis to determine the level of
skills/technical abilities, competencies, flexibility of the employee required
etc. At this point it is important to consider both the internal and
external factors that can have an effect on the recruitment of employees.
The external factors are that out-with the powers of the organization
and include issues such as current and future trends of the labor market
skills, education level, government investment into industries
etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the
organizational culture.

In order to know the business environment in which any

organization operates, tee major trends should be considered:

Demographics – the characteristics of a population/workforce, for

example, age, gender or social class. This type of trend may have an
effect in relation to pension offerings, packages etc.

Diversity – the variation within the population/workplace. Changes

in society now mean that a larger proportion of organizations are
made up of "baby-boomers" or older employees in comparison to
thirty years ago. Traditional advocates of "workplace diversity"
simply advocate an employee base that is a mirror reflection of the make-
up of society in so far as race, gender, sexual orientation, etc.

Skills and Qualifications – as industries move from manual

to more managerial professions so does the need for more highly
skilled graduates. If the market is "tight" (i.e. not enough staff for
the jobs), em pl oyer s will have to compete for employees by
offering financial rewards, community investment, etc.

MODERN CONCEPT OF HUMAN RESOURCES:

Though Insurancehave been part of business and organizations since

the first days of agriculture, the modern concept of Insurancebegan
in reaction to the efficiency focus of Taylorism in the early 1900s. By
1920, psychologists and employment experts in the United States started the
human relations movement, which viewed workers in terms of their
psychology and fit with companies, rather than as interchangeable parts.
This movement grew toughout the middle of the 20 th century, placing
emphasis on how leadership, cohesion, and loyalty played important roles
in organizational success. Although this view was increasingly challenged
by more quantitatively rigorous and less "soft" management techniques in
the 1960’s and beyond, development had gained a permanent role within
organizations, agencies and nations, increasingly as not only an academic
discipline, but as a central theme in development policy.
Human resource policies are systems of codified decisions,
established by an organization, to support administrative personnel
functions, performance management, employee relations and resource
planning.
Each company has a different set of circumstances, and so
develops an individual set of human resource policies.
Purposes:

policies allow an organization to be clear with employees on:

 The nature of the organization

 What they should expect from the company
 What the company expects of them
 How policies and procedures work at your company
 What is acceptable and unacceptable behavior
 The consequences of unacceptable behavior

The establishment of policies can help an organization demonstrate,

both internally and externally, that it meets requirements for diversity,
ethics and training as well as its commitments in relation to regulation
and corporate governance. For example, in order to dismiss an
employee in accordance with employment law requirements, amongst
other considerations, it will normally be necessary to meet provisions
within employment contracts and collective bargaining agreements. The
establishment of an Policy which sets out obligations, standards of behavior
and document disciplinary procedures, is now the standard approach to
meeting these obligations.

Developing the Policies:

policies provide an organization with a mechanism to manage risk

by staying up to date with current trends in employment standards and
legislation.
POLICIES AND PROCEDURES:

This factsheet gives introductory guidance. It:

 Highlights the main policies and procedures that organizations

need to consider
 Looks at formatting a policy and sources of information

Introducing policies and procedures gives organizations the opportunity

to offer a fair and consistent approach to managing their staff. For
more on why policies are introduced, see our factsheet policies and
procedures: why introduce them?

11 policy or practice areas those are crucial to effective people

management and development:

 Recruitment and Selection,

 Training and Learning/Development,
 Career Opportunities,
 Communication,
 Employee Involvement,
 Team Working,
 Performance Appraisal Pay,
 Satisfaction,
 Job Security,
 Job Challenge/Job Autonomy,
 Work-Life Balance.

7
 INDUSTRY

ORIGIN OF :

The origin of dates back to the 12 th century, the origin of

appeared first in marine and land fields. The ideas of were made in
Babylonia and India at quite an early period; the courts of Hammurabi and
Mano recognized the provision for sharing the future losses. However there is
no evidence that in its present form was practiced prior to 12 th century.
Tracing the history of to the present day, one can easily gauge the
performance of industry both collectively as an industry as well as
individually by the companies.

In earlier times, travelers by sea and land were very much exposed
to risk of losing their vessels and merchandise because piracy on the
open seas and highway robbery of caravan were common. References to
similar practices are also found in 'Manab Dharma Shastra' which
contained rules for sea from contracts which was observed by traders.
conceived as method of sharing of the losses embodying the principal of co-
operation existed in the early civilization.

Many may not be aware that the life industry of India is as old as it
is in any other part of the world. The first Indian life company was the
Oriental Life Company, which was started in India in 1818 at Kolkata. A
number of players (over 250 in

10
life and about 100 in non-life) mainly with regional focus flourished all
across the country. However, the Government of India, concerned by the
unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life) and in 1972 (non-
life). The business of the country was then brought under two public sector
companies, Life Corporation of India (LIC) and General Corporation of
India (GIC).

Reforms were initiated with the passage of Regulatory and

Development Authority (IRDA) Bill in 1999. IRDA was set up as an
independent regulatory authority, which has put in place regulations in line
with global norms. So far in the private sector, 12 life companies and 9
general companies have been registered.

REGULATORY AND DEVELOPMENT AUTHORITY

(I.R.D.A) ACT – 1999

The object of this act is to provide for the establishment of an

authority to protect the interest of holders of policies, to regulate, to
promote and ensure orderly growth of industries. Regulatory and
Development Authority (IRDA) has sought the comments of industry
participants to finalize the guidelines for online agents' training institutes.

These proposed guidelines are in addition to its standard

instructions and guidelines applicable for approval/renewal of agents'
training institutes. The guidelines would be applicable to all the online
training institutes including in-house training institutes of the insurers.
 As per the draft guidelines, the applicant should undergo at least
120 hours practical training in life or general business. The composite training
should be for at least 180 hours, where the applicant is seeking license for
the first time to act as an agent.

The duration should be minimum of 24 days for 120 hours training

and 36 days for 180 hours training with a maximum five hours per day.
Stating that no product training/market survey should be included into
this 120/180 hours training, the regulator said revision examination could
form part of the training.

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY:

 The powers and functions of the authority include registration of

insurers, intermediaries and agents regulations of terms and
conditions of contract of , promoting and regulating professional
organizations connected with the , monitoring investment of funds and
solvency margin of companies.
 The authority is to be advised by a committee to be known as the
advisory committee, which shall consists of not more than
25 members including ex-officio members in the sector. The
advisory committee is expected to advice the authority on matters
relating to making of the regulations.
 An Indian company has been defined as a company incorporated under
the Companies Act - 1956 and the paid capital of General business
will have to be not less than ` 100/- Crores and in case of companies
wanting to transact re business the paid capital will have to not less than
` 200/- Crores.
  It has also been notified that every company will have to appoint an
Actuary to be approved by I.R.D.A.. The duty of the Actuary is to
insure that-
The assets are valued in appropriate manner
The liabilities are evaluated as required
The prescribed margin for maintaining solvency is complied
with.
 The I.R.D.A. also issued regulations with regards to advertisement
so as to include almost any public communication for a sale of policy.

THE FUNDAMENTAL / PRINCIPALS OF LAW OF

UTMOST GOOD FAITH:

The parties to the commercial contract, according to the law are
required to observe good faith. The seller cannot mislead the buyer in
respect of transactions, but he has no subject of the contract, it is the
buyer’s duty to be careful while entering into a contract. 'LET THE
BUYER BE AWARE' is a legal rule.

INSURABLE INTEREST:
The owner of the property has a right under law to effect on the
property if he is likely to suffer financially when property is lost or
damaged. This legal right to insure is called insurable interest, without
insurable interest the contract of will be void.
Because of this legal requirement of insurable interest the
contracts are not gambling transactions.

INDEMNITY:
The principal of indemnity arises under common law and requires
that an control should be a contract of indemnity only and nothing more.
The object of principals to place the insured after a loss in the same
financial position as far as possible, as he is occupied immediately before the
loss. The effect of this principal is to prevent the insured from making the
profit out of his loss or gaining any advantage or benefit. The object of
a contract of is to protect the financial interest of the insured in the subject
matter of .

SUBROGATION:
The principal of subrogation arises from the principal of indemnity.
Subrogation may be defined as transfer of rights and remedies of the
insured to the insurer who has indemnified the insured in respect of the
loss. If the insured has any rights of action to be recovered the loss
from any third party, who is primary responsible for the loss, the insurer
having paid the loss is entitled to avail himself of these rights to recover
the loss from the third party. The effect is that the insured does not
receive more than actual amount of his loss and any recovery affected
from the third party goes to the benefit of the insurer to reduce the
amount of his loss.
MARKET IN INDIA:

By any yardstick, India, with about 200 million middle class

households, presents a huge untapped potential for players in the industry.
Saturation of markets in many developed economies has made the Indian
market even more attractive for global majors. Life is mainly considered as
a saving instrument rather than an investment avenue as it promotes
compulsory savings besides reducing tax burden on the policyholder and
protect the family of the policyholder in the event of unforeseen happening. It
is the only saving instrument, which covers the life risk besides giving tax
concession both at entry (premium paid) and at exit.

HISTORY AND PRESENT STATUS OF MARKET

IN INDIA:

The 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 sector reviles the 360-degree
turn witnessed over a period of almost two centuries.

A BRIEF HISTORY OF THE SECTOR

The business of life in India in its existing form started in India in

the 1818 with the establishment of Oriental Life Company in Calcutta. Some
of the important milestones in the Life business in India are:
  1912: The Indian Life Assurance Companies Act enacted as the
first statue to regulate the life business.
 1928: The Companies Act enacted to enable the government to
collect statistical information about both life and non- business.
 1938: Earlier legislation consolidated and amended to by the Act
with the objective of protecting the interest of the insuring
public.
 1956: 245 Indian and foreign insurers and provident societies
are taken over by the central government and nationalized. LIC
found by an Act of Parliament, viz. LIC Act 1956, with a
capital contribution of rupees Five Crores from the Government
of India.

SECTOR REFORMS:

In 1993, Malhotra Committee, headed by former Finance Secretary

and RBI Governor R. N. Malhotra, was formed to evaluate the Indian industry
and recommend its future direction. The Malhotra committee setup with the
objective of complimenting the reforms initiated in the financial sector. The
reforms where aimed at "creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in
mind the structural changes currently underway and recognizing that is
an important part of the overall financial system where it was necessary to
address the need for similar reforms.."

In 1994, the Committee submitted the report and some of the key
recommendations included:
Structure:

a. Government stake in the companies to be brought down to 50%.

b. Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.
c. All the company should be given greater freedom to operate.

Competition:

a. Private companies with a minimum paid up capital of Rs. 1 bn

should be allowed to enter the industry.
b. No company should deal both the life and general
tough a single entity.
c. Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
d. Postal Life should be allowed to operate in the rural market.
e. Only one state level Life Company should be allowed to operate in each
state.

Regulatory body:

a. The Act should be changed.

b. An regulatory body should be setup.

Reforms in the sector were initiated with the passage of the IRDA Bill in
the Parliament in December 1999. The IRDA since its incorporation as statutory
body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector
companies.

LIFE MARKET IN INDIA:

Life Statistics

Indian Population I bn

GDP as on 2000 ( ` bn) 50000 bn

Gross Domestic Saving as a % of GDP 32%

NCAER estimate is Population 240 mn

Estimated market 2015 950 mn

India has an enormous middle class that can afford to buy life,
health, and disability and pension plan products. The low level of
penetration of life in India compared to other developed nations can be
judged by a comparison of per capita life premium.

Country Life Premium per capita US $ in 1994

Japan 3817

UK 1280

USA 964

India 4
FUTURE OF LIFE MARKET:

Even at modest estimates the size of life market in India could be

around ` 40000 billion covering just 250 mn people…

LIC had enjoyed the monopoly of the big life market since 1956.
LIC was in for a surprise now and then when it found that, among air crash
casualties or rail accident victims, only very few had life cover. In fact
LIC did attempt to evaluate the size of the market and look at broad
homogeneous segments of the market based on the data provided by
Decennial Census Report relating to worker population categorized into
groups based on occupations. However LIC's major segmentations were the
urban, rural, male, female, medical and non-medical segments. The census of
occupation data was used more as a framework for formulating the
business plans. But, now with the entry of new player, very conscious of
their market shares, the evaluation of the size of the market for life
assumes importance. The market size with its viable segments is to be
identified and suitable products to meet the needs of these segments
developed.

Life market covers the entire age range of the population of 1000
mn in India . However taking into account their economic conditions and
their ability to pay the premium for some sort life cover or an annuity,
the number of eligible prospects for life may be put around 30% of the total
population viz, 300 mn. LIC has on its books as on date 125 mn policies.
Research had shown, that each of these holders of the policies have on an
average, 1.6 (as many policy holders have more than one policy). Thus the no
of persons holding life policies with LIC good work out to 75 mn. This
means only 25% of the potential market has so far covered, leaving the
remaining 75% a vast market of 225 mn persons to be covered.

Market size ever expanding…

This market size is dynamic and ever expanding. The growth is

dictated by several factors such as:

1. An addition of around 20 mn of new population each year.

2. More and more persons due to improvements in economic
conditions move continuously into the zone of people with
ability to pay premium for a life policy.
3. Many among the existing policyholders are grossly under
insured . They need and can afford additional . These can be made
to join the market as potential prospects for additional . These
form the creamy layers market capable of being very good
source of high volume of business.

Taking all these factors into account it can be seen that the size of
the market for life in India is enormous. Assuming the number of persons
who can be sold an policy to be 250 mn, in terms of number of policies,
this works out to 400 mn policies. In financial terms, taking the average
size of the policy as ` 1 lakh, the sum assured works out to ` 40,000 bn or $
800 bn. The first year's premium income can be assume as ` 6,250 per
annum per policy. The figures would keep increasing year by year due to the
improvement in the economic conditions leading to increase in the number of
potential prospects.
Top 10 Companies in India:

List of top 10 companies in India; these are the best

companies in life and finance sector.

1. Life Corporation of India (LIC)

a. Establishment – September 1, 1956

b. Corporate Office – Mumbai, Maharashtra
c. Employees – 1,20,000+
d. Business – Financial services
e. Website – www.licindia.in
f. Details – Best Company in India dominating the market since
then it established in market. In other word, it is the synonyms
of in India, most important they have best settlement ratio.
2. SBI Life

a. Establishment – March, 2001

b. Corporate Office – Mumbai, Maharashtra
c. Employees – 96,000+
d. Business –
e. Website – www.sbilife.co.in

f. Details – State bank of India life is a joint venture between BNP

Paribas Cardiff holding 74:26 ratios. It has great
 hold in Indian market as far as concern of Finance and
banking sector, best in sector after LIC.

3. Birla Sun life

a. Establishment – 2000
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 1,33,000+
d. Business – Financial services
e. Website – www.birlasunlife.com
f. Details – It is financial and Company, a Joint venture of
Aditya Birla and Sun life . Company offers life products
including health, wealth and retrial plans.

4. Reliance Life (RLIC)

a. Establishment – 2001
b. Corporate Office – Navi Mumbai, Maharashtra
c. Employees – 1,24,000+
d. Business –
e. Website – www.reliancelife.com
 f. Details – Company is Group Company of Reliance, among of
top company in India. In year 2011 Nippon life , Japan acquired
26% share in this company.

5. ICICI Prudential Life

a. Establishment – 2000
b. Corporate Office – United Kingdom
c. Employees – 15,000+
d. Business – Life
e. Website – www.iciciprulife.com
f. Details – ICICI prudential is a joint venture between ICICI
and prudential Plc., United Kingdom. ICICI Prudential offers
wide range of Products including health, wealth, life , medical and
retrial solutions.

6. Tata AIG Life

a. Establishment – 2001
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 7,500+
d. Business –
e. Website – www.tataaig.in
f. Details – Tata AIG is a joint venture between Tata and AIG;
it is Flagship Company of Tata group. Started
 business in year 2001, company launched many products
such as Motor, travel, health and accidental .

7. ING Vysya Life

a. Establishment – 2001
b. Corporate Office – Bangalore, Karnataka
c. Employees – 7,800+
d. Business –
e. Website – www.inglife.co.in
f. Details – ING Vysya is a company offers policies and retrial plans.
It has been serving in more than 200 cities in India and almost 10
laces customer base.

8. Bajaj Allianz Life

a. Establishment – 2001
b. Corporate Office – Pune
c. Employees – 1000+
d. Business –
e. Website – www.bajajallianz.com
f. Details – It is a private company offers many plan & policies
including ULIP, pension plans and term .
9. Max Life

a. Establishment – 2000
b. Corporate Office – New Delhi
c. Employees – 8,000+
d. Business – Financial Services
e. Website – www.maxlife.com
f. Details – Max life is another private company offers plans for
everyone.

10. HDFC Standard Life

a. Establishment – 2000
b. Corporate Office – Mumbai, Maharashtra
c. Employees – 15,500+
d. Business –
e. Website – www.hdfclife.com
f. Details – Group Company of giant Housing development
finance corporation, it is joint venture with Standard life .
 Companies:

is an upcoming sector, in India the year 2000 was a landmark year for
life industry, in this year the life industry was liberalized after more than fifty
years. sector was once a monopoly, with LIC as the only company, a
public sector enterprise. But nowadays the market opened up and there
are many private players competing in the market. There are fifteen private
lives companies has entered the industry. After the entry of these private
players, the market share of LIC has been considerably reduced. In the
last five years the private players is able to expand the market (growing at
30% per annum) and also has improved their market share to 18%. For
the past five years private players have launched many innovations in the
industry in terms of products, market channels and advertisement of products,
agent training and customer services etc.

List of General Companies

 Public Sector
 New India Assurance Company Limited
 National Company Limited
 The Oriental Co. Ltd.
 United India Co. Ltd.
 Agriculture Company of India Ltd.

 Private Players
 Bajaj Allianz General Co. Ltd.
 ICICI Lombard General Co. Ltd.
  IFFCO-Tokio General Co. Ltd.
 Reliance General Co. Ltd.
 Royal Sundaram Alliance Co. Ltd.
 TATA AIG General Co. Ltd.
 Cholamandalam General Co. Ltd.
 HDFC ERGO General Co. Ltd.
 Star Health Allied Co. Ltd.
 Apollo DKV Co. Ltd.
 Siram General Company Limited
 SBI General Company Limited
 Max Bupa Health Company Limited
 Future Generali India Co. Ltd.
 Universal Sompo General Co. Ltd.
 Bharti AXA General Co. Ltd.
 Raheja QBE General Company Ltd.
 L&T General Company Limited
 Religare Health Company Limited
 Magma HDI General Company Ltd.
 Liberty Videocon General Company Limited

 Specialised
 General Corporation of India
 Export Credit Guarantee Corporation
 List of Life Companies

 Public Sector life Company

 Life Corporation of India

 Private Sector life Companies

 Bajaj Allianz Life Company Ltd.
 Birla Sun-Life Company Ltd.
 HDFC Standard Life Co. Ltd.
 ICICI Prudential Life Co. Ltd.
 ING Vysya Life Company Ltd.
 Max New York Life Co. Ltd.
 MetLife Company Ltd.
 Kotak Mahindra Old Mutual Life Ins. Co. Ltd.
 SBI Life Company Limited
 TATA AIG Life Co. Ltd.
 Reliance Life Co. Ltd.
 Aviva Life Co. Pvt. Ltd.
 Sahara India Life Co. Ltd.
 Siram Life Co. Ltd.
 Bharti AXA Life Co. Ltd.
 Future Generali India Life Co. Ltd.
 IDBI Fortis Life Co. Ltd.
 Canara HSBC Oriental Bank of Commence Life
Corp. Ltd.
 AEGON Religare Life company Limited.
 DLF Pramerica Life Co. Ltd.
 Star Union Dai-ichi Life Co. Ltd.
 India First Life Company Limited
 Edelweiss Tokio Life Company Limited
 Life Corporation of India
भारतीय जीवन बीमा �नगम

Life Corporation of India (LIC)

Parent Company Government of India

Category NBFC

Sector and finance

Tagline / Slogan Yogakshemam Vahamyaham

(Your welfare is our responsibility)

USP India’s Largest Life Company

STP

Segment Personal and Group

Target Group Urban and Rural Investors

Positioning Complete and financial solutions

Competition

Competitors 1. SBI Life

2. Sahara Life
3. HDFC Standard Life
The Life Corporation of India (LIC is the largest state-owned life
company in India, and also the country's largest investor. It is fully owned by
the Government of India. It also funds close to 24.6% of the Indian
Government's expenses. It has assets estimated of INR13.25 trillion
(US$268.71 billion). It was founded in 1956 with the merger of 243
companies and provident societies.

Headquartered in Mumbai, financial and commercial capital of

India, the Life Corporation of India currently has 8 zonal Offices and 113
divisional offices located in different parts of India, around 3500 servicing
offices including 2048 branches, 54 Customer Zones, 25 Metro Area
Service Hubs and a number of Satellite Offices located in different cities and
towns of India and has a network of 13,37,064 individual agents, 242
Corporate Agents, 79 Referral Agents,
98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life business from
the public.

The slogan of LIC is:

Mission:
"Explore and enhance the quality of life of people tough financial security
by providing products and services of aspired attributes with competitive
returns, and by rendering resources for economic development."
Awards:

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

 1818: Oriental Life Company, the first life company on Indian soil
started functioning.

 1870: Bombay Mutual Life Assurance Society, the first Indian life
company started its business.

 1912: The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life business.

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

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

 1938: Earlier legislation consolidated and amended to by the 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 ` 5 crore from the Government of India. The
General business in India, on the other hand, can trace its roots to
the Triton Company Ltd., the first general company established in the
year 1850 in Calcutta by the
 British. Some of the important milestones in the general business in
India.

 1907: The Indian Mercantile Ltd. set up, the first company to
transact all classes of general business.

 1957: General Council, a wing of the Association of India, frames a

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

 1968: The Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

 1972: The General Business (Nationalization) Act, 1972 nationalized the

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

 107 insurers amalgamated and grouped into four companies viz. the
National Company Ltd., the New India Assurance Company Ltd., the
Oriental Company Ltd. and the United India Company Ltd.. GIC
incorporated as a company.

Products:

 Plans,
 Pension Plans,
 Unit Plans,
 Special Plans,
 Group Plans.
Introduction to Life Corporation (LIC):

The Life Corporation of India popularly known as “LIC of India”

was incorporated on September 1, 1956 by nationalizing 245 Indian as well
as foreign companies. It was established 52 years ago with a view to
provide an cover against various risk in life. The luminaries who
spearheaded this move at that time visualized an entity that will provide
life to Indians, especially the vast rural people, at an economical cost and
channel the savings for the betterment of the nation. It is the largest life
company in India and also the country’s largest investor. It is fully owned
by the Government of India and headquarter is Mumbai.

Today LIC function with 2048 fully computerized branch offices,

100 divisional offices, 7 Zonal offices and the corporate office. LIC’s
wide area Network cover 100 divisional offices and connects all the
branches tough a Metro area network. LIC has tied up with some Banks
and service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition
to customer convenience. Apart from on-line kiosks and IVRS, info centers
have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With vision
of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The digitalized record of the satellite
offices will facilitate anywhere to serve and other convenience in the
future.

LIC has crossed many milestones and has set unprecedented

performance records in various aspect of life business. The same motives
which inspired our forefathers to bring into
existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible
and to help the people in providing security to their families.

The subsidiary companies of LIC:

1. LIC of India, International: A joint venture offshore company

promoted by LIC, commenced its operation in July 1989. The
primary objective is to the US-dollar denominated policies which
cater to the needs of non-resident in Indians. It provides services to
policyholders who residing in Gulf. The LIC International operates in all
Gulf Cooperation Council (GCC) countries.

2. LIC Nepal: A joint venture company formed in September 2001

with the Vishal Group of Industries with a capital base of ` 250
mn. It is one of the largest capitalized companies of Nepal. It has
joint share between LIC of India (55%) Vishal Group (25%) and has a
public participation to the extent 20%.

3. Life Corporation Lanka Limited (LICL): A joint venture

company formed in 2003 with the Bartleet Group of Companies, it is
one of the oldest and reliable institutions in Sri Lanka. The combined
strengths of these two formidable companies has enabled LICL to
emerge as the premier provider of Life in Sri Lanka. The Indian-
based blue chip also has offices in UK, Mauritius, Fiji, and in all
Middle East countries.
 4. LIC Housing Finance: Incorporated on June 19, 1989; its main
objective is to provide long term finance for construction or
purchase of houses or apartments. The company provides long
terms finance to individuals for purchase, construction, repair and
renovation of new \ existing flats \ houses. It also provides finance on
existing property for business, personal needs and gives loans to
professionals for purchase or construction of clinics \ nursing homes \
diagnostic centers \ office space and also for purchase of
equipment’s. It has set up a representative office in Dubai and
Kuwait to cater to the non-resident Indians in countries covering Baain,
Dubai, Kuwait, Qatar and Saudi Arabia. It has client group of over
9,40,000 prudent house owners who enjoy the company’s financial
assistance.

5. LIC Housing Finance Limited Care Homes: It is a Wholly-

owned subsidiary of LIC Housing Finance. It builds and operates
“Assisted Community Living Center” for senior citizens. It operates
a network of approximately 6 regional offices, 13 back offices, and
127 marketing offices.

Products and Services in LIC:

LIC has eight zonal offices and 105 divisional offices located in
different parts of India. It compromises of 2,048 branches and employs
over 10,02,149 agents for soliciting life business from public.

LIC has extended its activities in 12 countries from outside India,

primarily to cater to the needs of non-resident Indians. LIC aims at
strengthening its relationship with its vast customer’s base by
providing value-added service such as credit cards and offering premium
payment facility to the policyholders. It is the largest player in India and its
objective is to channelize its funds for the benefit of the community at large. It
enjoys a near monopoly power in the solicitation and sale of life policies
in India.

The corporation has major business houses as clients, under the

group business of India. It has more than 1,18,000 corporate clients
covering more than 3,15,00,000 members.

Apart from the corporate group business the pension & group schemes
is responsible for ‘Aam Aadmi Bima Yojna’, a social security schemes for
the rural landless households under the aegis of the Government of India.

LIC has been investing a major portion of its funds in socially-

oriented sectors with a view to reach every insurable person in the
country and provide adequate financial cover against death at a
reasonable cost. Another goal is to mobilize people’s savings adequately
attractive. LIC has recently tied up with Policybazaar.com an portal that
enables the consumers to get detailed information on the policy. It is one
of the leading online non-life and life aggregator to sell its policy Jeevan
Aastha on the internet.

Objective of LIC:

1. Spread life widely in particular to the rural areas to socially and

economically backward class. This is done with a view to reach all
the insurable persons in the country to provide them adequate financial
cover against death at a reasonable cost.
2. To maximize mobilization of people’s savings by making linked savings
adequately attractive.

3. Bearing in mind, the primary obligation to its policyholders, whose

money hold in trust, the investible fund to be deployed to the best
advantage of the investors as well as the national priorities and the
obligations of attractive returns.

4. To conduct business with utmost economy and keeping in mind

that the money belongs to the policyholders.

5. It acts as a trustee of the insured public in its individual and

collective capacities.

6. To meet the various life need of the community that would arise in
the changing social and economic environment.

7. It ensures that all people working in the corporation are involved

to the best of their capability in furthering the interests of the
insured public by providing efficient service with courtesy. Promote
amongst all agents and employees of the corporation a sense of
participation, pride and job satisfaction tough discharge of their duties
with dedication towards achievement of corporate objective.
Reliance Life Company Limited

Reliance Life

Parent Company Reliance Capital ltd.

Category NBFC

Sector and finance

Tagline / Slogan Answer only 7 simple questions

USP Brand Reliance as its foundation

STP

Segment Personal and Group

Target Group Urban and Rural Investors

Positioning Complete and financial solutions

Competition

Competitors 1. Bajaj Allianz

2. Sahara Life
3. HDFC Standard Life
 Reliance Life Company (RLIC)

Reliance Life is amongst the top 5 private sector life companies in

terms of individual WRP (weighted received premium) and new business
WRP. The company is by far the largest non-bank promoted private life
insurer with over 10 million policy holders, a strong distribution network of
over 900 branches and over 1,00,000 advisor as on March 31, 2014.

Rated amongst the Top 2 Most Trusted Private Life Service Brands
by Brand Equity-Nielsen Most Trusted Brands Survey 2014, the company’s
vision is “To be a company people are proud of, trust in and grow with;
providing financial independence to every life we touch.” With this in
mind, Reliance Life caters to five distinct segments, namely Protection,
Child, Retirement, Saving & investment and
Health; for individuals as well as Groups / corporate entities.
Reliance Life is a part of Reliance Capital of the
Reliance Group. Reliance Capital is one of India's leading private sector
financial services companies, and ranks among the top private sector
financial services and non-banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds,
stock broking, life & general , proprietary investments, private equity and
other activities in financial services.
 Nippon Life Company acquired 26% interest in equity share capital
of the Company effective October 7, 2011 subsequent to receipt of all
regulatory approval.

Nippon Life , also called Nissay, with 28% market share is Japan's
largest private life insurer with revenues of ` 406,502 crore (US $ 66
Billion) and profits of over ` 31,145 crore (US $ 5 billion). The Company has
over 21 million policies in Japan, offers a wide range of products, including
individual and group life and annuity policies tough various distribution
channels and mainly uses face-to-face sales channel for its traditional
products. The company primarily operated in Japan, North America, Europe
and Asia and is headquartered in Osaka, Japan. It is ranked 86th in Global
Fortune 500 firms in 2013.

Few men in history have made as dramatic a contribution to their

country's economic progress as did the founder of Reliance,
Si. Dhirubhai H. Ambani. Fewer still have left behind a legacy that is
more enduring and timeless.

As with all great pioneers, there is more than one unique way of
describing the true genius of Dhirubhai; the corporate visionary, the
unmatched strategist, the proud patriot, the leader of men, the architect of
India's capital markets, and the champion of shareholder interest.
 But the role Dhirubhai cherished most was perhaps that of India's
greatest wealth creator. In one lifetime, he built from scratch, India's
largest private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a
seed capital of only about US $ 300 (around ` 14,000). Over the next tee
and a half decades, he converted this fledgling enterprise into a
` 60,000 crore colossus — an achievement which earned Reliance a place
on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of India's capital
markets. In 1977, when Reliance Textile Industries Limited first went
public, the Indian stock market was a place patronized by a small club
of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-
time retail investors to participate in the unfolding the Reliance story and
put their hard-earned money into the Reliance Textile IPO, promising
them in exchange for their trust, substantial return on their investments. It
was to be the start of one of the greatest stories of mutual respect and
reciprocal gain in the Indian market.
Under Dhirubhai's extraordinary vision and leadership, Reliance
scripted one of the greatest growth stories in corporate history anywhere
in the world, and went on to become India's largest private sector
enterprise.
Toughout this amazing journey, Dhirubhai always kept the interests
of the ordinary shareholder above all else; in the process making millionaires
out of many of the initial investors in the Reliance stock, and creating
one of the world's largest shareholder families.
 Anil Dhirubai Ambani, born on 4th June, 1959, in Mumbai.

He is the younger son of the visionary entrepreneur Si. Dhirubhai Ambani

and lives with his mother Kokilaben Dhirubhai Ambani in Mumbai.
Graduated (B.Sc. in Science) from K. C. College, Mumbai University and
MBA at Wharton, University of Pennsylvania. He is married to former
actress - Tina Munim and has two sons – Jai Anmol (23 Years) and Jai
Anshul (19 Years). He has an elder brother Mr. Mukesh Ambani and two
younger sisters Mrs. Dipti Salgaocar and Mrs. Nina Kothari.

Corporate:

Anil Dhirubhai Ambani is one of India’s leading business leaders

and founder of the Reliance Group; whose constituent business enterprises
are engaged in pivotal roles in the ongoing economic transformation of
India. He is the Chairman of the Reliance Group; including, Reliance
Communications, Reliance Capital, Reliance Infrastructure, and Reliance
Power.

Anil or ADA, as he is often referred to by his colleagues, founded

the Reliance Group in 2006 and in less than 10 years, the Reliance
Group has built a leadership position in major growth sectors of the
Indian economy, including telecommunications, generation, transmission
 and distribution of renewable and non-renewable sources of power,
national road highways, metro rail systems, cement, financial services,
education, healthcare, media and entertainment.

Key Indicators of Reliance Group:

Reliance Group is amongst India's top 5 business houses and has

the world's largest Shareholder / Investor base of over 13 million
shareholders and investors. Reliance Group has assets in excess of
` 2,60,000 Crore (US $ 43 billion); annual Revenues of the order of
` 56,000 Crore (US $ 9 billion); Net Worth of over ` 98,000 Crore
(US $ 16 billion); and over 1,00,000 employees.

Si Ambani has been associated with a number of prestigious academic

institutions in India and abroad.

TobeaCompanypeople
roudof,trustinandgrowwith; providingfinancialindependencetoe
lifewetouch

Planning people's future and standing by them in their hour of

need goes beyond business, it takes a selfless intent of thinking well for
others. Our advisors enjoy high credibility and stature in society, having
helped not only shape future of families, but also recuperate in tough
times. 'Do Good' is our intent, our philosophy and belief that we aim to
bring alive tough every life we touch.
Board of Directors:

 Rajendra Chitale, Independent Director

 Soumen Chitale, Non-Executive Director
 Amit Bapna, Non-Executive Director
 Kazuhide Toda, Non-Executive Director
 Anup Rau, Chief Executive Officer and Executive Director
 D. Varadarajan, Independent Director
 Renu Challu, Independent Director

Key Persons::

 Mr. Anup Rau Velamuri,

 Chief Executive Officer

 Mr. S. V. Sunder Krishnan,

 Chief Risk Officer

 Mr. Sunil Agarwal,

 Chief Finance Officer

 Mr. Srinivasan Iyengar,

 Chief Operating officer
 Mr. Alok Kalra,
 Head of Marketing

 Mr. Viral Berawala,

 Chief Investment Officer

 Mr. Sameer Karekatte,

 Chief Compliance Officer

 Mr. Ashish Lakhtakia,

 Company Secretary

 Ms. Kavita Maru,

 Chief Internal Auditor

 Mr. Prithesh Kumar Chaubey,

 Appointed Actuary

 Ms. Puja Mehta,

 Principal Compliance Officer - AML
 SWOT
Analysis
Strength 1. Robust and Diverse Product portfolio

2. Has network of 1252 offices and 1,65,000

agents

3. Strong Capital Base and strong brand backing

of Reliance

4. Reliance Capital is one of India’s leading

private sector financial services companies,
and ranks among the top 3 private sector
financial services and banking companies, in
terms of net worth

Weakness 1. Controversies related to Reliance Capital may

have a negative impact

2. Low advertising as compared to competitors

Opportunity 1. Opportunities in the newer semi-urban and

rural markets

2. Earning Urban Youth looking for investments

Teats 1. Economic crisis and global financial

problems

2. Entry of new NBFC’s in the sector

 Aditya Birla Group
&
Sun Life Financial, Inc.

Birla Sun Life

Parent Company Aditya Birla Group & Sun Life Financial Services

Category NBFC

Sector Services

Tagline / Slogan ‘Zindagi ke utar chadav mei jiyo vishwas ke saath’;

Leaving nothing to chance
USP Expertise in across Continents

STP

Segment Personal and Group Asset Management

Target Group Urban and Rural Investors

Positioning Complete and financial solutions

Competition

Competitors 1. LIC
2. SBI Life
3. HDFC Standard Life
Overview:

Birla Sun Life Company Limited (BSLI) is a joint venture between

the Aditya Birla Group, a well-known Indian conglomerate and Sun Life
Financial Inc., one of the leading international financial services organizations
from Canada. With an experience of over a decade, BSLI has contributed to
the growth and development of the Indian life industry and currently is one
of the leading life companies in the country.

Company Profile:

Established in 2000, Birla Sun Life Company Limited (BSLI) is a

joint venture between the Aditya Birla Group, a well-known and trusted
name globally amongst Indian conglomerates and Sun Life Financial Inc.,
leading international financial services organization from Canada. The local
knowledge of the Aditya Birla Group combined with the domain expertise
of Sun Life Financial Inc., offers a formidable
protection for its customers' future.
With an experience of over 10 years, BSLI has contributed
significantly to the growth and development of the life industry in India
and currently ranks amongst the top 7 private life companies in the country.
 Known for its innovation and creating industry benchmarks, BSLI
has several firsts to its credit. It was the first Indian Company to
introduce "Free Look Period" and the same was made mandatory by IRDA
for all other life companies. Additionally, BSLI pioneered the launch of
Unit Linked Life plans amongst the private players in India. To establish
credibility and further transparency, BSLI also enjoys the prestige to be the
originator of practice to disclose portfolio on monthly basis. These category
development initiatives have helped BSLI be closer to its policy holder’s
expectations, which gets further accentuated by the complete bouquet of
products (viz. pure term plan, life stage products, health plan and
retirement plan) that the company offers.

About Birla Sun Life :

Birla Sun Life Company Limited (BSLI) is a joint venture between the
Aditya Birla Group, a well-known Indian conglomerate and Sun Life
Financial Inc., one of the leading international financial services organization’s
from Canada. With an experience of over a decade, BSLI has contributed
to the growth and development of the Indian life industry and is
currently one of the leading life companies in the country. BSLI has
a customer base of over two million policy holders. The Company offers a
complete range of offerings comprising protection solutions, children's
future solutions, wealth with protection solutions, health and wellness
solutions, retirement solutions and savings with protection solutions. It has an
extensive distribution reach in over 500 cities tough its network of over 560
branches, around 85,000 empanelled advisors and over 140 partnerships
with corporate agents, brokers and banks. Birla Sun Life has
total assets under management of ` 26,813 Crores and a robust capital
base of over ` 2,170 Crores, as on 30th Jun, 2014. For more
information, please visit www.birlasunlife.com

About Aditya Birla Financial Services Group (ABFSG):

Aditya Birla Financial Services Group (ABFSG) ranks among the

top 5 fund managers in India (excluding LIC) with an AUM of USD
billion. Having a strong presence across the life , asset
management, NBFC, private equity, retail broking, distribution &
wealth management, and general broking businesses, ABFSG is
committed to serve the end-to-end financial services needs of
its retail and corporate customers.

The seven companies representing ABFSG are: Birla Sun Life

Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya
Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla
Money Ltd., Aditya Birla Money Mart Ltd. and Aditya Birla Brokers
Ltd.. In FY 2013-14, ABFSG reported consolidated revenue from these
businesses at ` 6,640 Crore (USD 1.1 billion) and earnings before tax at `
745 Crore. Anchored by about 13,000 employees and trusted by over 5.3
million customers, ABFSG has a nationwide reach tough 1,500 points of
presence and about 130,000 agents / channel partners.

About Aditya Birla Nuvo:

Aditya Birla Nuvo is a USD 4 billion conglomerate operating in

the services and the manufacturing sectors, where it commands a
leadership position. Its service sector businesses include Financial Services
(Life , Asset Management, NBFC, Private Equity, Broking, Wealth
Management and general advisory), Fashion & Lifestyle (Branded apparels &
Textiles) and Telecom. Its manufacturing businesses comprise of the Agri,
Rayon and Insulators businesses.

Aditya Birla Nuvo is part of the Aditya Birla Group, a USD 40

billion Indian multinational. The Group operates in 36 countries across
the globe, is anchored by an extraordinary force of about 120,000
employees belonging to 42 nationalities and derives more than 50% of its
revenue from its overseas operations.

About Sun Life Financial:

Sun Life Financial is a leading international financial services

organization providing a diverse range of protection and wealth products
and services to individuals and corporate customers. Sun Life Financial
and its partners have operations in key markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong Kong, the
Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam,
Malaysia and Bermuda. As of June 30, 2014, the Sun Life Financial
group of companies had total assets under management of $ 684 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York
(NYSE) and Philippine (PSE) stock exchanges under the ticker symbol
SLF.

VISION:

To be a leader and role model in a broad based and integrated financial

services business.
Objective of Project:

The current research will be aimed at determining the Practices and

Policies. The research will be focused on the following major issues.

a) To study the significance of policies.

b) To study the system development.
c) To measure the factors related to Practices and Policies.
d) To study the employee relation and executive response for
Practices and Policies in Industry.

RESEARCH METHDOLOGY:

In order to cope up with the emerging challenges due to tough

global competitions, the way out for this is to produce quality products
at reasonable prices. This is possible only tough an organization culture of
quality consciousness and enhanced productivity. Optimal utilization of
resources especially the Insuranceare one sure way of meeting this
objective. That’s why proper induction of an employee is very important.

Research Design:

Research design means a specified framework for controlling the

data collection. The research is of descriptive in nature, which could
provide an accurate picture of induction procedure conducted in the
organization. Descriptive research includes surveys and fact-finding
inquiries of different kinds. The research is of Ex post facto nature in
which researcher no control over the variables has. Statistical method lay
stress on objectivity rather than rely on intuition and judgment and
average & percentages can easily be calculated.

Research Instrument:
The following methodology was adopted in project::
 Comprises of understanding the theoretical concepts in
general,
 Questionnaire study,
 Analysis of the primary data,
 Analysis of the secondary data.

DATA COLLECTION TECHNIQUES:

Sources of Data:

The statically method needs the collection of data in two forms:

a) Primary Data
b) Secondary Data

a) Primary Data
The primary data are those, which are collected a fresh and for the
first time, and thus happen to be original in character. The data on
the required information is collected from actual persons using the
product/services. This data is more suited for the objectives of the
project.
 b) Secondary Data
The data which have already been collected by someone else or
taken from published or unpublished sources and which have been
already been passed tough the statistical process.

MODE OF DATA COLLECTION:

The study is based on Secondary data which includes:

Secondary Data:

Secondary Data will be gathered from books and journals on

Practices and Policies in Industry.

SAMPLING PLAN:

Sample Size:

Unit :: 100 Employees

Universe:

The universe of the study was be Industry.

Contact method:

The respondents sampling personally will be prepared to interview

100 employees..
 DATA ANALYSIS AND INTERPRETATION

A.INDUCTION PROGRAM

1) Does company provide induction for new employees?

Answer Respondents Percentage

Yes 93 93 %
No 7 7%

Induction Practices
No, 7

Yes
No

Yes, 93

INTERPRETATION:

 The graph shows that almost all the companies are following
induction practices.
 Near about 93% of the companies follow induction practices
while 7% of them don’t follow it.
 Induction is although inseparable part for practices. Yet there
are companies, which don’t follow a standard procedure of induction
but make it just tough personal explanation of working strategy of
the dept.
2) Who participates in delivering induction?

Answer No. of respondents Percentage

Department 35 35 %
Related Department 40 40 %
All Department 25 25 %

Involvement in Induction

100%

80% 35 40
60%
40%25
20%
0%

INSURANCE Department
Related Department
All Department

INTERPRETATION:

 Most of the companies follow delivery of induction by related

departments.
 According to the survey approximately 40% of the companies
follow induction practice tough related dept., which explains working
of respective dept. to the employees.
 Compared to 40% of induction done by related dept. 35% is been
done by dept. and only 25% is performed by all dept.
.
3) Is Induction same for all levels or different?

Answer No. of respondents Percentage

Same for all 40 40 %
Different for
different levels 60 60 %

Level of Induction

40

Same for all

Different for different levels

60

INTERPRETATION:

 Most of the companies say that induction process is different for

different level of employees while some says that the induction
procedure they follow is same for all level of employees.
 The company may prepare a common induction procedure to
explain the policies, work culture of the company, the benefits the
company provide, the basis to be adopted for transfers and
separations, basis for promotions, and a brief history of the
organization, yet the process to be followed for individual working
environment must be different.
 B. BEHAVIORAL TRAINING

4) How does the company recognize the need of training.

Answer No. of respondents Percentage

Tough Questionnaire 20 20 %
Performance
Monitoring 30 30 %
Reference from
Supervisor 30 30 %
Absence in Pride 4 4%
Defective Quality
Product 6 6%
Unsatisfactory
Promotions 10 10 %

Training Need
20
10
6
TInsuranceough Questionnaire Performance Monitoring Reference from Sup

Defective Quality Product Unsatisfactory Promotion

30 30
INTERPRETATION:

 There may be several methods for training among which most

commonly adopted method is reference tough supervisor.
 Although 30% of superiors depends on performance monitoring
approach to decide for providing training to their employees.
 Although 10% of superiors depends on unsatisfactory promotions
approach to decide for providing training to their employees.
 And only 20% rely on questionnaire method, 6% rely on defective
quality product and only 4% rely on absence in pride.
5) What type of training is conducted?

No. of
Answer respondents Percentage
On the Job Training 50 50 %
Class Room Sessions 30 30 %
Online Training 10 10 %
Apprentice Training 5 5%
Outdoor Training 5 5%

Type of Training
5 5

On the Job Training

10 Class Room Sessions
Online Training

50

30 Apprentice Training
Outdoor Training

INTERPRETATION:

 Though various types of training methods are adopted this

comprises of on the online training, apprentice training, classroom
training, job training, and outdoor training. But the most commonly
adopted method is on the job training, which is practiced in almost
all companies.
 Then do the companies prefer the outdoor training, which is, again
most adopted one whereas online training is least.
6) What is the annual budget for training?

Answer No. of respondents Percentage

1 - 2 Lac. 5 5%
2 - 3 Lac. 40 40 %
3 - 5 Lac. 50 50 %
5 - 10 Lac. 5 5%

Training Budget
60

50 50

40 40

30

20

10

5 5
0
1 - 2 Lac. 2 - 3 Lac. 3 - 5 Lac. 5 - 10 Lac.

INTERPRETATION:

 The budget is decided depending upon the need of the employee

and the degree of skills and knowledge already possessed by the
employees and also depending the need of the organization.
 Most of the companies i.e. almost 40% of companies keep their
budget around ` 2 to 3 lac and almost 50% of companies keep
their budget around ` 3 to 5 lac.
 Although some organizations have as high as ` 5 to 10 lac
assigned as budget for training.
7) What is the module duration for training programme?

Answer No. of respondents Percentage

Less than a week 60 60 %
Minimum of 2 s. to
2 days 10 10 %
Maximum to 6-7 days 20 20 %
For 4 week 10 10 %

Training Module

10
20 Less than a week

Minimum of 2 Insurances. to
2 days
Maximum to 6-7 days

60 For 4 week
10

INTERPRETATION:

 Most of the companies prefer to go for training for less than 1

week it is mostly ranging from a minimum of 2 s. to 2 days and
maximum to 6 to 7 days.
 Some of the companies even go for a training for 4 weeks, which
makes their employees completely trained about the skills they are
lacking in.
 The companies even go for job rotation, which help them go for
all round development.
 C. MOTIVATIONAL TOOLS

8) Does the company provide any profit sharing policy?

Answer No. of respondents Percentage

ESOP’s 4 4 %
Bonus 80 80 %
Shares 10 10 %
None 6 6 %

Profit Sharing
6
10 4

ESOP’s
Bonus Shares None

80

INTERPRETATION:

 Although there may be various profit sharing methods which may

work as motivational aspect for the employees. It could be tough ESOPs,
excreta etc., yet the most preferred one could be providing bonus to the
employees who fall in to this category as per government rule.
 According to the survey 10% of the organizations declare shares
for their employees and 80% prefer to declare bonus time to time.
9) Does the company provide any recreational activities.

Answer No. of respondents Percentage

Picnics 30 17 %
Tours 50 28 %
Family Outings 60 33 %
None 0 0%
Others 40 22 %

Recreational Activities

70

60

50

40

30 60
50
20 40
30
10

0 0
Picnics Tours Family Outings Others
None
INTERPRETATION:

 Recreational activities are quite important for maintaining

interpersonal relations among the staff and to develop enthusiasm
among the employees. Moreover it’s a part of welfare activity,
which even work as motivational aspect.
 The company could conduct many activities, which could gather the
company staff together at a common platform. These activities
could be picnics , tours, outings, parties, functions, get together.
 These activities not only enhance the interpersonal relations but also
help the families of the employees interact.
 According to the survey the most preferred activity is get together
which approaches up to approx. 100% of the organizations and the
least preferred one is company tours.
10) Does company provide any retirement benefits?

Answer No. of respondents Percentage

Gratuity 20 20 %
VRS 4 4 %
PF 60 60 %
Pension 10 10 %
Old Age Security 6 6 %

Retirement Benefits

10 6
Gratuity

20 VRS

60 PF

Pension

Old Age Security

4

INTERPRETATION:

 As per government rule providing 60% provident funds (PF) and

20% gratuity & 4% VRS (Voluntary Retirement Scheme) is the
rule thus it is provided by all the organizations.
 Apart from these, organizations provide other benefits too. 6% of
the organizations provide age relaxation so that the employees could
serve a little more to the organization and approx. 10% provide
pensions to retired employees.
 D. WELFARE ACTIVITIES

11) What are the welfare activities taken up by the

organization.

Answer No. of respondents Percentage

On Duty Doctors 75 62.5 %
Collaboration
with Hospitals 12 10 %
Ambulance for
Emergency 18 15 %
First aid kit 15 12.5 %
None 0 0%

Welfare Activities

15 0
On Duty Doctors
18
Collaboration with Hospitals
Ambulance for Emergency
First aid kit

12
None
75
INTERPRETATION:

 Most of the organizations provide all the major welfare activities to

their employees.
 Almost 10% of the companies provide first aid facilities and
cafeteria.
 Almost 80% of them the organizations provide on duty doctors to
their employees.
 Although the maintenance of these uniforms may be taken by either
the dept. or the employees by themselves.
 Almost 10% of the organizations have collaboration with hospitals.
 It may be company bus, or the company vehicles; in some cases
the company provides traveling allowance.
12) Does organization adopt any job safety measures?

Answer No. of respondents Percentage

Fire Safety 60 60 %
Electric/Shock
Safety 20 20 %
Radiation Safety 10 10 %
Handling of
Machinery 10 10 %

Safety Measures
10

Fire Safety
10
Electric/Shock Safety
Radiation Safety
Handling of Machinery

20 60

INTERPRETATION:

 Various safety measures, which could be adopted by the

organizations, could be from fire, shock and electricity, safety while
handling machinery, and operational health and safety measures
(OH&S facility).
 According to the survey almost all the organizations adopt all these
safety measures.
 The result is 100% implementation of these practices.
 E. REWARDS AND RECOGNITION

13) What appreciation scheme is followed by the

organization.

Answer No. of respondents Percentage

Appreciate
Publically 8 8%
Incentives 10 10 %
Increments 70 70 %
Promotions 12 12 %

Appreciation Scheme

8
12

10

Appreciate Publically Incentives

Increments
Promotions

70
INTERPRETATION:

 The organization may provide perks, promotions, monetary rewards,

increments, incentives or even an appreciation in public matters a
lot.
 According to the survey the most common, adopted and preferred
one is increments for better work performance, then comes the
promotions & monetary incentives.
 Almost 70% of the organizations prefer to go for increments and
12% provide promotions & 10% provide monetary incentives.
 Least preferred one is public appreciation count to 8%.
14) What are various award & recognition schemes of the
organization?

Answer No. of respondents Percentage

Additional Pay for
Extra Work 22 22 %
Paid vacations 60 60 %
Overtime 8 8%
Monetary Rewards 6 6%
Perks 4 4%

Reward Basis

6 4 Additional Pay for Extra Work

22
Paid vacations
8

Overtime

Monetary Rewards

60 Perks
INTERPRETATION:

 There are various methods to reward an employee for his

outstanding performance. The organization may provide them with
paid vacations, additional pay for additional work, overtime,
monetary rewards, perks etc.
 According to the survey perks are the most preferred means of
rewarding the employees, then is paying overtime and least
preferred is paid vacations.
 Paid vacations counts to 60% of the choice, and perks the least to
4%.
15) How the organization recognize outstanding performer.

Answer No. of respondents Percentage

Regularity 40 40 %
Punctuality 30 30 %
Initiative 20 20 %
Extra Work 6 6%
Productivity 4 4%

Basis of Judgement

6
4 40
20

Regularity Punctuality Initiative Extra Work

Productivity

30
INTERPRETATION:

 Although almost all the organizations go for all:

 Punctuality
 Regularity
 Initiative
 Productivity
 Extra work
 But according to the survey the most preferred basis is punctuality
followed by initiative and productivity.
 Regularity comprises 40% preference in deciding the right candidate
for reward and Punctuality, Initiative and Productivity aspect counts
equal to 30%, 20% and 4%.
 LIMITATIONS

This report had to work under several constraints and

limitations. Some of the key limitations are…..

 VERY TIME CONSUMING in the fast competitive market

everybody is busy in performing his / her job. It is really hard for
the managers to spare time. So it is time consuming.

 TIME CONSTRAINTS understanding the work culture of any

organization in few weeks is very hard task. For doing project few
weeks are not enough. Managers were very busy so managing time
with them was quite difficult.

 As the researcher was an outsider so co-ordination with the

employees took some time and it was formal.

 managers were quite reserved in sharing their company’s policies

with an outsider.

 The sample size of study was small..

 CONCLUSION

At last I want to say that while recruitment and selection identify

acceptable candidate, the process still continue with induction program for
the new employee, we can further fine tune the fit between the
candidate’s qualities and the organization’s desire. Then to make the
employees more skilled behavioral training may be provided.

It makes the positive impact of any organization, but it needs a lot

of money, time, attention and guidance. It is just like only taking, not
giving or taking the starting benefits and when the time comes for
returning back you just quit the job. So it is not always fruitful.

The employee motivation is needed to be built up tough constant attempts

of the organization. The organization may adopt various methods for
motivating the employees. It may be by providing recreational activities
such as tours, picnics, family outings, annual days, sport days, functions, and
parties. The organization must consider its employees as its family members
and must provide some profit sharing policy such as ESOPs , bonus, and
shares. The organization may provide fringe benefits.

Welfare activities to be undertaken by the organization

may include various facilities such as uniform for the
employees for whom department is responsible for its
maintenance and providing it.

Last but not the least rewards are the main motivational activity,
which may be monetary and non-monetary rewards.
 At last to conclude, I would like to say that with enthusiasm that
it was a great experience working with many experienced people working
at senior positions. Interacting and spending time with the people rich in
learning experience. The people were very cooperative and helpful and
encouraging. It is an experience to be cherished for a long time.

It was great of learning so much about practices and implementing

them. I’m really thankful for all the senior members who explain me the
working strategies and methodologies of organizations.
 SUGGESTIONS

As in the competitive world where the need for every organization

to prove itself the best and make an outstanding and remarkable progress
is the need, no fact could be left ignored. Every organization must know
the shortcomings and must try to go for building up the shortcomings.
An ethical practice in any organization could only be achieved if the
organization works for the well-being of its employees. Every
organization must possess a basic structure and the organization must be
capable enough to reward its outstanding performers and must appreciate
the initiative works.
According to the survey been conducted with various heads of various
organizations here are few suggestions from their side:

A. INDUCTION PRACTICES:

Induction is must in every organization for all level of employees to

make them well known of the industry they are working in.

The best ways to perform induction may be tough:

 Lectures,
 Power point presentations prepared explaining company’s policies,
 Tough SOPs (Standard operating procedures),
 Manuals,
 Diaries,
 But the most adopted one is tough personal induction.
 The induction program must follow a proper feedback from
employees been put into the program which is again an ethical practice
and is achieved by:
 Induction scheduling,
 Opinions from supervisors,
 Feedback forms.

B. BEHAVIORAL TRAINING:

 Behavioral training is boon for any organization.

 The organization could provide on the job training, which is
quite common and most adopted. The organization may also
go for outdoor training
 Job rotation could be preferred which could make the
employee skilled in overall working of an organization.
 The organization may provide a basic training for FIRST
AID & SAFETY OR FIRE SAFETY TRAINING.
 The organization may have tie ups with the training
organizations which could organize courses and the
organization may take up the best course as per requirements
of their staff.
 A proper feedback must be taken to grasp the extent the
employees have versed themselves with knowledge.
 Proper Feed-back could be taken tough-
 Evaluation,
 Questionnaire,
 Feedback forms,
 Submission of report tough trainee,
 Feedback tough trainers.
 C. MOTIVATIONAL TOOLS:

Motivating for work is inseparable to continue productivity. But

work when itself serves as motivation then progress is inevitable. The
organization must take great care to motivate its employees tough various
methods.

Promotion may be one of the best motivational factors. Promotional

basis could be -

 Work Performance,
 Qualification,
 Performance Evaluation,
 Skill Enhancements,
 Initiative steps taken .

Organization may also provide fringe benefits such as:

 Leave Traveling Allowance,

 Medical,
 Free Transportation,
 ESI (Employee State ),
 Furnishing Scheme,
 House Lease,
 Hospitalization.
 D. WELFARE ACTIVITIES:

The organization may adopt welfare policies such as:

 Transportation facility,
 Canteen facility with breakfast, lunch and dinner facility along
with refreshments.
 Canteen could be free, subsidized, paid. But the most
preferred one is tough subsidized mode.
 The organization must also possess first aid facilities for its
staff. A well-versed rehabilitation of injured staff and an duty
doctor or an ambulance should be always provided.
 The organization must also possess a grievance handling
committee despite a union to take an action for their
problems. It could be a tee-tier of four-tier grievance committee.

E. REWARD AND RECOGNITION SCHEME:

Rewarding the best work not only provide the candidate with
appreciation but also provide enthusiasm to do better. A competitive spirit
is also developed to perform the best.
Some of the practices of rewarding the employees practiced in
organizations are:

 Award after completion of 10 years of service,

 Company’s well-furnished housing & hotels for officers,
 Paid vacations to foreign countries,
 Yearly reward scheme,
 Overall equipment efficiency reward,
 Quality man of the year award,
 Best man of the year,
 Best kaizen award,
 Increments,
 Promotions,
 Incentives,
 Monetary rewards,
 Public appreciation.
 RECOMMENDATIONS

For all the programs the organization must follow feedback method
to understand the effectiveness of any practice in a better way.
Holistic views of induction should out show both positive and
negative aspects of the organization. This ultimately let the employee
know about both the phases of the policies adopted by the organization.
Practice of providing a brief presentation of the company and a
booklet for rules and regulations of company must be maintained so that
the employee could go tough it whenever required.
Individual should concentrate more while training. When an
organization invest on training of an employee, the purpose of training
serves the mutual benefit of both organization and the employee. Thus,
the employee should be more oriented towards drawing as much benefits
as he can. Employees are supposed to understand their role for particular
training program.
Company must maintain training manuals or training charts and
training report submitted by the trainee. This, practice not only keeps a
maintained record of the programs been conducted but also keep the
employee known of the knowledge gained by him which could later be
utilized.
A pre-evaluation and post-evaluation practice should be followed to
understand the success of training and the training could be then
effectively used to fill gaps later.
Continuous training module should be conducted, personality
development training should be provided.
  To motivate the employees,
 Performance awards could be given every year,
 Incentives could be paid,
 Salary saving schemes could be provided.

Extra activities such as games and sports, community meetings,

recreational activities, picnics, tours and outings should be planned to
improve the interpersonal relationships.
External welfare activities could also be taken up by the
organization such as –

 Blood donation camps,

 Safety week,

 Free eye camps,

 Free books for children,

 Poster and quotes competition could be organized.

Devotion, belongingness and good team member spirit should be

rewarded. Employees should be encouraged for group efforts and team
work.
To avoid worker union for better employee welfare and give
suitable welfare activities from time to time to the employees in house
work committee should be developed to handle the grievance.
Employee’s participation is key issue. Thus, suggestions should
always be invited and maximum efforts should be put up to implement
the suggestions.
INITIATIVE SUGGESTIONS:

Employee’s family’s involvement in motivating employee is the key

element. It creates a special pressure point.

 Drawing competitions of children could be organized.

 Special training for wives could be arranged to teach them
what are the do’s and doesn’t.
 Special scholarships could be announced for the children of
employees securing good marks.

Management by objective should be adopted. The practice should

be objective to avoid biasness.
Kaizen award could be given to the implementer of best
suggestion.

BENEFITS:

“The new environment in INDIA is an environment of change, a change

brought by an awakening among the people of INDIA who demand a
fair deal for themselves and for their children. This situation constitutes
a great challenge for managers. All managers, whether they are
managing business or offices, farms or factories, whether they are called
business executives or civil servants, will have to measure up to this
challenge”.
-- MRS. INDIRA GANDHI

For scientific and systematic execution of all human activities, two

essential watch words are - administer well and manage well.
Thus focusing the benefits of ethical practices are:

 INCREASED PRODUCTIVITY: practices deals with training

process which teach the employees proper handling of
resources and the methods to put their resources to optimum
utilization with minimization of losses and minimum wastage.

 EMPLOYEE SATISFACTION: goes for human resource

development functioning. It looks after the welfare activities
of the employees. Take care of their problems. Thus, an
overall care of their health, transportation, meals and well-
being is taken. Which ultimately results into employee
satisfaction?

 INDUSTRIAL PEACE: Ethical practices contain a well

maintained grievance handling machinery which deals with the
internal problems and provide employees with satisfactory
solutions.

 ORGANIZAED WORK PATTERN: With the ascent of

practices the organization follows the process of
departmentation. Which further results to delegation of work
and an organized work pattern.

 BETTER INTERACTION: Tough recreational activities been

organized by the organization (like- parties, picnics, get-together,
annual days celebration). This inculcate team spirit among the
employees.
 BETTER ADMINISTRATION: Tough following a fixed and
scheduled work pattern like- induction feed-backs, induction
scheduling, training feed-backs, performance appraisal forms
etc.

 KNOWLEDGE ENHANCEMENT: Tough trainings (on- the-job

training, out-door training etc.)

 PARTICIPATION IN MANAGEMENT: tough suggestions and

kaizen practices.

 MORALE ENHANCEMENT: Tough motivational activities and

reward and recognition schemes.

 EMPLOYEE ADVANCEMENT

 SYSTEMATIC SCHEDULE

 EMPLOYEE CARE

 GOOD INTERPERSONAL RELATION

 Bibliography:

I. Dr. P. Subba Rao- Essentials of Human Resource

Management And Industrial Relations (Himalaya
Publishing House, 3rd Revised Edition)
II. K Aswathapa- Human Resource and Personnel
Management (Tata McGraw Hill, 5th Edition)
III. C. R. Kothari - Research Methodology Methods &
Techniques (New Age International Publishers, 2nd
Edition, 2004)

Webliography:

 http://www.licindia.in/
 http://www.reliancelife.com/
 http://.birlasunlife.com/Pages/Individual/About-
Us/Company-Profile.aspx
 http://en.wikipedia.org/wiki/Life__Corporation_of_ India
 http://en.wikipedia.org/wiki/Reliance_Life_
 http://en.wikipedia.org/wiki/Sun_Life_Financial
 http://en.wikipedia.org/wiki/Aditya_Birla_Group
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-companies-in-india/
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