`A

PROJECT REPORT
ON
“STRATEGIES OF CONFLICT MANAGEMENT”
WITH SPECIAL REFERENCE TO
“SHRI RAM LIFE INSURANCE”
DISSERTATION SUBMITTED TO

OSMANIA UNIVERSITY, HYEDERABAD

IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
SUBMITTED BY
MIDHAT
[H.T.NO: 209617684061]
UNDER THE GUIDANCE OF
Mrs. DEBOSHREE CHATTERJEE

SAANVI DEGREE COLLEGE FOR WOMEN

(AFFILIATED TO OSMANIA UNIVERSITY)
IS SADAN RD, VINAY NAGAR COLONY, SANTOSH NAGAR,
HYEDERABAD, TELANGANA.
2017-2020

1
 DECLARATION

I hereby declared that this project titled “ A STUDY ON STRATEGIES OF

CONFLICT MANAGEMENT” with reference to “SHRI RAM LIFE
INSURANCE” submitted by me to the department of BUSINESS
MANAGEMENT, which is affiliated to Osmania University, Hyderabad,
bonafide work undertaken by me and it is not submitted to any other university or institute for
the award of any degree/diploma/certificate or published any time before…..

DATE:
PLACE:

MIDHAT
(2096-17-684-061)

2
 ACKNOWLEDGEMENT

The presentation of the report in the way required has been made possible by the way of
contribution of various people. The completion of the project titled “A STUDY ON THE
STRATEGIES OF CONFLICT MANAGEMENT WITH SPECIAL
REFERENCE TO SHRI RAM LIFE INSURANCE” brings to express thanks to
one and all of those who helped along the way.

I would like to express my gratitude to Mr. VENKAT REDDY GARU chairman of

Saanvi Degree College for giving his support and guidance throughout this project.

I would also like to express my gratitude to Dr. MOUNIKA REDDY (Ph.D. O.U),
principal of SAANVI DEGREE COLLEGE, for giving her support and guidance
throughout this project.

I would also like to express my gratitude to the regional manager JUNAID WARSI of
SHRI RAM LIFE INSURANCE for giving the support and guidance throughout this
project.
I express my deep sense of gratitude and sincere thanks to my project guide
MRS.DEBOSHRE CHATERJEE for her proficient guidance, invaluable advice and
constant encouragement during the course of this project work.

I thank all my beloved Friends, Classmates who helped me to complete the work and lastly
those who had been involved directly or indirectly with the successful completion of this
dissertation work
I express my heartfelt gratitude to all my family members for their constant encouragement
and support for completing my project smoothly.

MIDHAT
(209617684061)

3
 ABSTRACT

There is a famous saying “The theory without practical is lame and practical without theory is
blind”

The article reports entitle “A STUDY ON STRATEGIES OF CONFLICT

MANAGEMENT” is intended to analyse the various conflict resolving strategies. The
research is based on through primary data and secondary data. The assessment has been with
reference to solution oriented, non-confrontational and control and also focused on giving
specific suggestion to improve the relations in industrial sector. It is hoped the findings could
provide an empirical bases upon conflict management strategies adopted by the employees
has styled to meet their needs of the industrial people.
The response given by the workers of the company is analysed and interpreted part of any
business and managing them is and important task.
Our institution has come forward with the opportunity to bridge the gap by imparting modern
scientific management principle underlying the concept of the future perspective managers.
The sample size of the article is 50 from the population of 100. The questionnaire method as
survey is used as a tool for collecting the primary data. The questionnaire has been designed
by the researcher according to the objective of the study percentage analysis is used as tools
for data analysis.
To the emphasis on practical aspect of Shri ram life insurance with a modern system of
practical training of repute and following management technique to the student as integral
part of SAANVI DEGREE COLLEGE FOR WOMEN in accordance with the
above obligation under going project in “SHRI RAM LIFE INSURANCE,
GACHIBOWLI, HYDERABAD”. The title of my project is “A STUDY ON
STRATEGIES OF CONFLICT MANAGEMENT”
Keywords: Conflict resolving strategies, Shri Ram Life Insurance, sample
size 50, questionnaire method.

4
 INDEX
CHAPTER PG.NO
CHAPTER- 1 INTRODUCTION 6-18
 Scope of the study

 Need of the study

 Objective of the
study

 Research
Methodology

 Limitations of the
study

CHAPTER-2 19-40
LITERATURE
REVIEW

CHAPTER-3 41-64
INDUSTRY PROFILE
AND
COMPANY PROFILE

CHAPTER-4 65-80
DATA ANALYSIS
AND
INTERPRETATION

CHAPTER-5 81-91
FINDING
SUGGESTION
CONCLUSION

 BIBLIOGRAPHY
 ANNEXURE

5
CHAPTER-1

6
 INTRODUCTION
MEANING OF HUMAN RESOURCE MANAGEMENT:
Human Resource Management is a strategic process and involves attracting, developing and
maintaining a talented and energetic workforce to support organizations objectives, missions
and strategies. Due to an increased complexity in global business, rapidly changing and
highly competitive environment an effective human resource management has become a vital
strategic concern for the organizations of today
The human resource function plays an increasingly important role in an
organization’s ultimate success or failure. In the new economy, raw materials and capital can
be brought from anywhere at any time. But organizational success depends on skills,
creativity and ideas of the employees.
Human Resource Management has to manage many issues of main organizations
goals. One of those issues is conflict among employees or employers or both. Group effort is
needed in any organization for its smooth functioning, but when there is more than one
person involved in any activity, it is very clear that there may be chances of conflicts among
them. Conflict is inevitable and necessary for the growth of any organization though it is
harmful sometimes.

7
DEFINATION OF HUMAN RESOURCE MANAGEMENT:
According to “Edwin B. Filippo” human resource management is the planning,
organizing, directing and controlling of the procurement, development, compensation,
integrating, maintenance and separation of human resource to the end that individual,
organizational and social objectives are accomplished”.

The National Institute of Personal Management (NIPM) of India has defined human resources –
personal management as “that part of management which is concerned with people at work and with
their relationship within an enterprise. Its aim is to bring together and develop into an effective
organization of the men and women who make up enterprise and having regard for the well – being of
the individuals and of working groups, to enable them to make their best contribution to its success”.

According to Decenzo and Robbins, “Human Resource Management is concerned with the people
dimension” in management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization is essential to achieve organisational
objectives. This is true, regardless of the type of organization – government, business, education,
health or social action”.

8
MEANING OF CONFLICT MANAGEMENT:
In any business concern the four main factors of production are man,
material, machine, money which are important to achieve the organizational objectives.
Among the four factors man is the most important factor is man who is the living
being and prior cause of achieving the organizational objectives.
When people with different temperaments, backgrounds, point of views, values,
needs, personalities interact, it is likeley that some of conflict may arise.
Conflict may arise due to perceptual differences of individual. These differences may be due
loss of authority, role conflict, unequal or unfair treatment, status and goal differences.
Conflcts may also arise by actions, constraints and demands of the organization and
responsibilities to be performed by the worker.
Conflict management refers to the process of limiting the negative aspects of
conflicts and increasing the positive aspects of conflict.
The aim of conflict management is to enhance learning and group outcomes, including
effectiveness in an organizational setting. Properly managed conflict can improve group
outcomes.
Conflict resoulution involves the reduction, elimination, or termination of all forms and types
of conflicts.

9
DEFINATION OF CONFLICT MANAGEMENT:
“The practice of recognizing and dealing with the disputes in a rational, balanced and
effective way. Conflict management implemented within a business environment usually
involves effective communication, problem solving and good negotiating skills to restore the
focus to the companys overall goals.
Conflict is a breakdown in the standard mechanisms of decision making, so that an individual
or group experiences difficulty in selecting an alternative.” (J. G. March & H. A.
Simon, Organizations, 1958)

“Conflicts that are strategic are essentially bargaining situations in which the ability of one
participant to gain his ends is dependent on the choices or decisions that the other participant
will make.” (T. Schelling, The Strategy of Conflict, 1960)

“Conflict is a situation in which the conditions, practices, or goals for the different
participants are inherently incompatible.” (C. G. Smith, Administrative Science Quarterly,
1966)

“Conflicts involve struggles between two or more people over values, or competition for
status, power, or scarce resources (L. Coser, Continuities in the Study of Social Conflict,
1967)

10
 SCOPE OF THE STUDY:
The development of any organization depends on the accuracy of resolving its
conflicts.
The development of any organization depends on the ways of solving conflicts.
 The study is conducted to know the various ways and reasons fo conflicts in
organization.

 The study will cover the causes of conflicts in an organization.

 The study will also focus on the moderate factors that are purely related to human
resource and have a strong relation between employee and managers.

 To study the attitude and resoultion techniques of conflict in management.

 To sudy the approaches of employees towards conflicts.

11
NEED OF THE STUDY:
The need of conflict management strategies can be explained in following
ways:
Strategies for conflict management is needed to understand and coordinate the actions
of employees work.

Conflict management strategies are needed to encourage employees to approach

management on certain conflicts which cannot be solved among co-workers on their
own.

Conflcit management is an expensive method for management but neccesarry for

effectiveness of production.

Clearing the air by regualar meetings that give employees the chance to solve their
griviences.

There are need for conflict management strategies to offer as much as information
about decisions to minimize confusions and resentment.

12
OBJECTIVES OF THE STUDY:

The study was conducted to achieve the following objectives:

The main objective is to understand the concept of conflict management.

To identify the strategies for conflict resolution.

To offer suggestions to the management in order to reduce conflicts.

13
RESEARCH METHODOLOGY:
MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also define research
as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. Research is an academic activity and as
such the term should be used in a technical sense.

14
RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods/techniques but also the methodology. Research projects can be used to
develop further knowledge on a topic, or in the example of a school research project, they can
be used to further a student's research prowess to prepare them for future jobs or reports.

2) SAMPLE SELECTION AND SIZE

The population for the study comprised of employees involved in
conflict management for current year, the sample size: 50 workers

METHODS OF DATA COLLECTION

15
PRIMARY DATA:
Primary data can be collected either through experiment or through survey. If the
researcher conducts an experiment, he observes some quantitative measurements, or the data,
with the help of which he examines the truth contained in his hypothesis. But in the case of a
survey, data can be collected by any one or more of the following ways:
In this project primary data was collected by questionnaire survey. Th workmen selected for
the interview purpose were from the employees of the finance sector which affect the
decision making directly. A random selection of samples from the workmen segment was
done in the company.

SAMPLE SIZE:
Thus, 50 workmen were selected for survey through questionnaires prepared.
This helpled to be fair to all by not keeping in view the past record of employees.

16
SECONDARY DATA:
Secondary data means data that are already available i.e they refer to the
data which have already been collected and analyzed by someone else. When the researchrer
utlizes secondary data, then he has to look into various sources from where he can obtain
them. In this case he is certainly not confronted with the problems that are usually associated
with the collection of original data. Secondary data may either be published data or
unpublished data. Usually published data are available in

i. Various publications of the central,state are local governments

ii. Various publications of foreign governments or of international bodies and their
subsidary organizations
iii. Technical and trade journals
iv. Books, magazines and newspapers
v. Reports and publications of various associations connected with business and
industry, banks, stock exchanges etc.
vi. Reports prepared by research scholars, universities, economists, etc. in different fields
vii. Public records and statistics, historical documents and other sources of published
information.

17
LIMITATIONS OF THE STUDY:

There are some limitations for research which are as follows:

 As it was not possible to visit each department the true picture of working
condition could not be judged.

 The sample employees selected for the present day are 50 workers, because of
constraints of limited time

 The workers were busy with their work therefore they could not give enough
time for the interview

 The responses may be influenced by personal bias.

 Due to fear of loosing the job the employees would not give clear view of
conflicts arising in the company

 Their would be major involvement of higher authority and control due to

which the creative mind of employees were not considered.

 Time factor was one of the main limitaitions of the study. In a short span of 45
days it was difficult to collect all needed information.

 The process of filling up of questionnaire has taken up so much time as most

of employees were not aware of the concept or terms.

 Some of the employees give no answer to the questions which may affect the
analysis.

18
 CHAPTER -2
REVIEW OF LITERATURE

INTRODUCTION

19
Whenever two individuals opine in different ways, a conflict arises. In a layman’s language
conflict is nothing but a fight either between two individuals or among group members. No
two individuals can think alike and there is definitely a difference in their thought process as
well as their understanding. Disagreements among individuals lead to conflicts and fights.
Conflict arises whenever individuals have different values, opinions, needs, interests and
are unable to find a middle way.

Tim and Joe were working in the same team and were best of friends. One fine day, they
were asked to give their inputs on a particular project assigned to them by their superior.
There was a major clash in their understanding of the project and both could not agree to each
other’s opinions. Tim wanted to execute the project in a particular way which did not go well
with Joe. The outcome of the difference in their opinions was a conflict between the two and
now both of them just can’t stand each other.

The dissimilarity in the interest, thought process, nature and attitude of Tim and Joe gave rise
to a conflict between the two.
Conflict is defined as a clash between individuals arising out of a difference in thought
process, attitudes, understanding, interests, requirements and even sometimes
perceptions. A conflict results in heated arguments, physical abuses and definitely loss of
peace and harmony. A conflict can actually change relationships. Friends can become foes as
a result of conflict just as in the case of Tim and Joe.

A Conflict not only can arise between individuals but also among countries, political parties
and states as well. A small conflict not controlled at the correct time may lead to a large war
and rifts among countries leading to major unrest and disharmony.

Conflict occurs when employees express their dissatisfaction with management over the
current state of the management employee relationship. The causes of such dissatisfaction are
typically matters related to regular wage payment, wage increase or remunerations according
to terms of the employment contract.

Formal methods are organized and are planned in advance, while informal ones are
spontaneous and unorganized, usually taking management by surprise.

Conflicts may be at individual level, group level and at organizational level. At all levels, it
may develop and be managed. In resolving a conflict, managers should first diagnose the
causes of conflict and then think of the strategy for a particular kind of conflict. There may be
different strategies to be used to handle the conflict efficiently in different cases.

Defination of conflict by authors

20
 "A simple definition of conflict is that it is any tension which is experienced when one
person perceives that one's needs or desires are likely to be thwarted or frustrated".

Mary Parker Follett simply defines conflict as, "the appearance of difference, difference
of opinions, of interests".

Thomas Chung and Rich Megginson define conflict as, "the struggle between
incompatible or struggling needs, wishes, ideas, interests or people. Conflict arises when
individuals or groups encounter goals that both parties cannot obtain satisfactorily".

According to David L. Austin (1972), "It can be defined as a disagreement between two
or more individuals or groups, with each individual or group trying to gain acceptance of its
view or objectives over others".

Louis R. Pondy (1938-1987) has given a very comprehensive definition of conflict.

According to him the term conflict is used in four ways in the literature to describe:

Conflict can take on any of several different forms in an organization. It can occur within
an employee, between individuals or groups and across organizations. Thus, the different
types of conflicts are: intrapersonal, interpersonal, intergroup and interorganizational conflict.
It is important to note that the prefix intra means "within", whereas inter means "between".

METHODS OF CONFLICT:

21
Strike:
A strike is the employees temporary withdrawel of services, contrary to an employement
contract. It is a formal form of conflict that is usually organized by a trade union. A strike
usually continues until mangament addresses the matter of dissatisfaction that caused it.
Strike can be in the following way:

i. Stit down strike: in this, the workers go to the work plac ebut refuse to work. They do
not leave the premises of the factory untlil the strike is over.

ii. Go slow or slow down: the workers continur to work but do so at a much slow rate,
thus slowing down the progress of work. They do not totally abstain from work they
are entitled to pay for the period of slow down.

iii. Picketing: in order to call to the attention of the public that a strike is going on, and
disallow others from entering the plant or doing business in the undertaking, the
workers or their sympathizers place themeselves at the entrance of the factory,
causing obsturction to people who want to go in or come out. These persons are
termed ‘PICKETS’ and the method as a whole, picketing.

iv. Gherao: it is a form of dispute, in which workers do not allow the officer to leave his
room or working place for a considerably long period so as ot press for their demands.
The officer cant eben go for make off water.

Work to rule:
Another form of formal conflict, occurs when workers work strictly according to the legal
terms of their contract. They deliberately refuse to make use of their initiative and act rigidly,
like pre-programmed machines. It naturally slows down work progress.

Absenteeism:
an informal form of conflict, occurs when employees deliberately refuse to report to their
workplace. Absenteeism is not always a sign of conflict, since employees can fail to report to
work due to injury or illness. Absenteeism merely increases the loss of productivity and
revenue that an organization suffers due to gailure of workers ot report for duty due to
reasons of petsonal incapacity that they cannot help, such as illness.

Sabotage:
another form of informal conflict, occures when employees deliberately damage their
organizations production or reputation. Employers who engage in sabotage usually hide their
individual identities, but do not shy away from identifyig themselves as a pressure group.

Lockout:
it is just the opposite procedure of stike and consists in the closing of factory by the employer
because of a dispute with the employees and is the refusal of entry to them.

PHASES OF CONFLICT:

22
A conflict has five phases.
Prelude to conflict –
It involves all the factors which possibly arise a conflict among individuals. Lack of
coordination, differences in interests, dissimilarity in cultural, religion, educational
background all are instrumental in arising a conflict.

Triggering Event –
No conflict can arise on its own. There has to be an event which triggers the conflict. Jenny
and Ali never got along very well with each other. They were from different cultural
backgrounds, a very strong factor for possibility of a conflict. Ali was in the mid of a
presentation when Jenny stood up and criticized him for the lack of relevant content in his
presentation, thus triggering the conflict between them.

Initiation Phase –
Initiation phase is actually the phase when the conflict has already begun. Heated arguments,
abuses, verbal disagreements are all warning alarms which indicate that the fight is already
on.

Differentiation Phase –
It is the phase when the individuals voice out their differences against each other. The reasons
for the conflict are raised in the differentiation phase.

Resolution Phase –
A Conflict leads to nowhere. Individuals must try to compromise to some extent and resolve
the conflict soon. The resolution phase explores the various options to resolve the conflict.
Conflicts can be of many types like verbal conflict, religious conflict, emotional conflict,
social conflict, personal conflict, organizational conflict, community conflict and so on.
Conflicts and fighting with each other never lead to a conclusion. If you are not on the same
line as the other individual, never fight, instead try your level best to sort out your
differences. Discussion is always a better and wiser way to adopt rather than conflicts.

The term 'conflict' has wide connotation. It is subject to different interpretations in different
context. It is generally referred to a psychological state of mind where a person cannot decide
the behavior this way or that way. Sometimes, the term is used as a difference of opinion
between two persons or groups irrespective of their status in the organization. For example,
we say, they have conflicting views. No less frequent is the phenomenon where people are
engaged in showdowns, each party developing strategies to meet the challenge of the other
and get polarized into two warring groups. Conflict is a powerful process having both
desirable and undesirable consequences, so, it cannot be eliminated, it can be and should be
managed properly and timely.

CHARACTERISTICS OF CONFLICT:
23
1. Conflict is a Process:
Conflict occurs in ‘layers. First layer is always misunderstanding. The other layers are
differences of values, differences of viewpoint, differences of interest, and interpersonal
differences. It is also called a process because it begins with one party perceiving the other to
oppose or negatively affect its interests and ends with competing, collaborating,
compromising or avoiding.

2. Conflict is Inevitable:
Conflict exists everywhere. No two persons are the same. Hence, they may have individual
differences. And the differences may be because of values or otherwise, lead to conflict.

3. Conflict is a Normal Part of Life:

Individuals, groups, and organizations have unlimited needs and different values but limited
resources. Thus, this incompatibility is bound to lead to conflicts. The conflict is not a
problem, but if it is poorly managed then it becomes a problem.

4. Perception:
It must be perceived by the parties to it, otherwise it does not exist. In interpersonal
interaction, perception is more important than reality. What we perceive and think affects our
behavior, attitudes, and communication.

5. Opposition:
One party to the conflict must be perceiving or doing something the other party does not like
or want.

6. Everyone is inflicted with Conflict:

Conflict may occur within an individual, between two or more individuals, groups or between
organizations.

CAUSES OF CONFLICT:

24
Status:
Status is a state, condition, or situation. When there is a need for status and a “wrong” person
is promoted.

Incongruence:
A party is required to engage in an activity that is incongruent with his or her needs or
interests.

Incompatibility:
A party holds behavioral preferences like attitudes, values, skills, goals, and perceptions, the
satisfaction of which is incompatible with another person’s implementation of his or her
preferences. Economics: Insufficient remuneration to employees.

Stress:
Conflicts from stress from external sources; i.e., functional or dysfunctional situations.
Poor or Inadequate Organizational Structure and Lack of Teamwork.

Seeking Power:
Often a conflict for power struggle takes place when everyone wants to be a leader and
nobody wants to be a follower.

Weak Leadership:
Conflict is bound to result if someone of less stature leads a more qualified and experienced
worker.

Specialization:
Employees tend to become specialists in a particular job or get a general knowledge of many
tasks. If most employees in an organization are specialists, it can lead to conflicts because
they have little knowledge of each other’s job responsibilities. For instance, a receptionist at a
camera repair store can say that a camera can be repaired in an hour, even though the repair
will take a week. Since the receptionist does not know much about the technician’s job, she
should not give an unrealistic deadline when the camera will be ready. This situation can lead
to conflict between the receptionist and the technician.

Common Resources:
In many work situations, we have to share resources. The scarcer the resource in the
organization, the greater the chance for a conflict situation. Resource scarcity leads to a
conflict because each person that needs the same resources necessarily undermines others
who pursue their own goals. Limited resources may include money, supplies, people or
information.

Goal Differences:
Very often, the possibility of conflict increases substantially when departments in the
organization have different or incompatible goals. For instance, the goal of a computer
salesperson is to sell many computers as fast as possible.

Are Conflicts Bad and Undesirable?

25
We are of the opinion that conflicts are inevitable, not always bad or the same as discomfort,
but key to them is proper diagnosis and their resolution. Conflict is often needed as it-
a. Helps to raise and address problems,
b. Energizes work to be on the most appropriate issues,
c. Helps people “be real”, for example, it motivates them to participate, and
d. Helps people learn how to recognize and benefit from their differences.
Conflict becomes a problem when it:
a. Hampers productivity,
b. Lowers morale,
c. Causes more and continued conflicts, and
d. Causes inappropriate behaviours.

IMPACT OF CONFLICTS:
Changes that may occur within the groups:
I. Group cohesiveness increases
II. The group becomes task oriented
III. Organizational structure becomes more effective
IV. Leadership becomes more effective

Prolonged group conflicts cause following changes between groups:

I. each group sees the other as an enemy who interferes with its goal -oriented behavior.
II. Communication ceases to exist.
III. Develops positive perceptions about own group and negative perceptions toward the
other.

Potential benefits in intergroup conflicts are:

I. Conflict clarifies the real issue
II. It increases innovation
III. Strengthens the group and reduces the internal conflicts
IV. Conflict can provide an outlet for ventilating their feelings
V. Conflict resolution may strengthen intergroup relationships

CONFLICT MANAGEMENT:
26
MEANING:

Conflict management is the principle that all conflicts cannot necessarily be resolved, but
learning how to manage conflicts can decrease the odds of non-productive escalation.
Conflict management involves acquiring skills related to conflict resolution, self-awareness
about conflict modes, conflict communication skills, and establishing a structure for
management of conflict in your environment.’ All members of every organization need to
have ways of keeping conflict to a minimum – and of solving problems caused by conflict,
before conflict becomes a major obstacle to your work.

The dissimilarity in the interests, thought processes, needs, attitudes of individuals result in a
conflict. It is defined as a clash among individuals resulting in verbal disagreements, physical
abuses and tensions. A conflict never provides any solution to a problem, instead it just
worsens the situation. It leads to disrespect among individuals, hampers the productivity and
individuals often feel demotivated after a fight.

Conflicts must be prevented at the right time in order to avoid tensions and other adverse
effects. In such a scenario, conflict management comes in picture.

Conflict Management involves the steps undertaken to prevent the conflict at the right
time and also helps to resolve it in an effective and smooth manner. No conflict can just
start on its own. There has to be an event or an incident to trigger the same. Through conflict
management, one actually finds out the possible events which can start a conflict and tries his
level best to avoid them.

It is very essential to understand the factors which might lead to a conflict. An individual must
consider all the events which initiate a fight for an effective conflict management. Discussion goes a
long way in preventing conflicts. Before implementing any new idea, make sure you discuss with
each and every one related to it. Listen to what other individuals have to say and consider their
opinions as well. Ignoring anybody’s views might lead to a tussle. No two individuals can think on
the same line but it is always wise to find a middle way which takes into account everybody’s
interests. Don’t leave any issue unaddressed, instead discuss it when all the participants are present.
Never criticize or make fun of anyone as they lead to a conflict. Be a good and an effective listener.
Greet everyone with a warm smile. Individuals must not be too rigid and must learn to compromise
sometimes. Do not create an environment which would lead to disagreements. At workplaces,
transparency must be maintained at all levels and there must be a single point of contact to address the
issues of individuals. The subordinates should have an easy access to their superiors to avoid
confusions. An individual must not utter any word which might hurt the sentiments of the other
individuals. Avoid backbitings as it is one of the strongest reasons for conflicts.

Even if a conflict doesn’t involve you, don’t just ignore, instead intervene immediately to pacify
the individuals. Be a good mediator and try to resolve the issues keeping everyone in mind.

Conflict management helps individuals to understand the causes of a conflict and helps prevent
it at the right time

27
28
 RESOLUTION OF CONFLICT:

Strategies for resolution of conflicts:

Some conflicts are relatively minor, easy to tackle, or capable of being
overlooked, while others are of greater magnitude, however, require a strategy for successful
resolution if they are not to create tension. Conflict resolution strategies may be calssifed into
three categories as explained under:

1. Avoidance:
Some conflict situations are avoided altogether. These are the situations, which
are either cannot be sorted out effectively or preferred to be ignored.
2. Defusion:
This tactic is essentially a delaying action. Defusion strategies try to cool off the
situation, atleast temporarily. Delaying discussion of the major problem, postponing a
confrontation until a more auspicious time are the examples of defusion. These tactics
result in feelings of dissatisfaction, anxiety about future and concerns about oneself.
3. Confrontation:
These can be either power strategies or negotiatio strategies and negotiation
strategies. Power strategies include the use of physica force, bribery and punishement.
Whit negotiation strategies, unlike power confrontation, both can win. The aim of
negotiatio is to resolve the conflict with a compromise or a solution which is mutually
satisfying to all the parties involved in the conflict.

MEASURES TO PREVENT CONFLICT:

1.Two way communication
2.Participative decision making
3.Labour participation in management
4.Effective leadership
5.Better interpersonal relationship
6.Favourable working conditions
7.Fair wages, bonus, allowances, awards etc

29
MACHINERY FOR CONFLICT MANAGEMENT:

 Progressive management:
There should be progressive outlook of the management of each enterprise. It
shoulde be conscious of its obligations and responsibilities to the ownerss of the
business, the emplouees, the consumers and the nation. The management must
recognise the rights of workers to organise unions to protect their economic and social
interests.

 Strong and stable unions:

A strong and stable union is needed in every organization for enchancing and
maintaining its relations. The employers can easily ignore a weak union of the plea
that it hardly represents the workers. The agrrement with such a union will hardly be
honoured by a large section of workforce.

 Atmosphere of mutual trust:

Both management and labour should help in the development of an atmosphere
of mutual cooperation, confidence and respect. Management should adopt a
progressive outlook, and should recognise the right of workers.

 Mutual accommodation:
The right of collective bargaining of the trade unions must be recongised by the
employers. It is the cornerstone of confict resolution. In any organisation,there must
be a great emphasis on mutual accommodation rather that conflict or uncompromising
attitude. The approach of collective bargaining must be of” give and take” rather the
“take or leave”.

 Sincere implementation of agreements:

The management should sincerely implement the settlements reached with the
trade unions. The agreement between the management and the unions should be
enforced both in letter and spirit.

 Workers participation in management:

The participation of workers in the management of the industrial unit should
be encouraged by making effective use of works committees, joint consultation and
other methods. This will improve communication between managers and workers,
increase productivity and lead to greater effectiveness.

 Sound personnel policies:

Personnel policies should be formulated in consultation with the workers and
their representatives if they are to be implemented effectively. The policies should be
clearly stated so that there is no confusion in the mind of anybody.

 Governments role:
The government should play an effective role of promoting company peace.

30
CONFLICT RESOULUTION MODEL:

All organizations, however simple or complex, possess a range of mechanisms

or procedures for managing conflict. The success or effectiveness of such
procedures can be gauged by the extent to which they limit conflict behavior
and the extent to which they help to achieve a satisfactory solution.

When you become engaged in a conflict, there are two major concerns
individuals have to take into account:

Achieving your personal goals —

Individuals are in conflict because individuals have a goal that conflicts with another
person’s goal. Individual goal may be of high importance to him, or it may be of little
importance to him.

Keeping a good relationship with the other person —

Individuals may need to be able to interact effectively with the other person in the future.
The relation-ship may be very important to individual or may be of little importance to him.
How important your personal goals are to you and how important the relationship is to you
affects how you act in a conflict. Given these two concerns, it is possible to identify styles of
managing conflict in an organization are as follows:

Avoiding:
The basic goal of the avoidance it to delay. Person would rather hide and ignore conflict than
resolve it. This leads to the uncooperative and unassertive. Person tend to give up personal
goals and display passive behavior creating lose-lose situations. Person believes it is easier to
withdraw from a conflict rather than to face it.

31
Smoothing:
Smoothing refers to the conciliation that occurs when one person or group is willing to yield
to the other. Smoothing results from a low concern for one group own interests combined
with a high concern for the interest of another group. Smoothing conflict management style
emphasis on human relationships. Individuals ignore their own goals and resolve conflict by
giving in to others because they see the relationships as of the greatest importance while their
own goals are of the least importance.

Forcing:
It designates a situation in which one person or group attempts to acquire complete
dominance. Individual do not hesitate to use aggressive behavior to resolve conflict. This
style is appropriate when quick decisive action is vital; on important issues where, unpopular
actions need implementing.

Confronting:
Confronting style refers to strong cooperative and assertive behavior. It is the win-win
approach to interpersonal conflict handling. The person using confronting desire to maximize
joint results. An individual who uses this style tends to see conflict as natural, helpful, and
leading to a more creative solution if handled properly. Exhibit trust in others and conflict is
resolve to the satisfaction of all. Confronting style is most practical method.

ORGANIZATION STRUCTURE BASED CONFLICT

RESOULUTION:
Structure of an organization provide fuel to create conflict situation. If
conflict is not managed properly become dysfunctional or destructive.
Following are the ways to manage structure-based conflict:

 Super ordinate goals:

An organizational goal that is more important to both parties in a conflict than their
individual or group goal is a super ordinate goal. Goals cannot be achieved by an
individual or by one group alone. The achievement of goal requires cooperation by
both parties. Super ordinate goal converts a conflict between departments to friendly
interactions, develops favorable attitudes and seeks to achieve solutions that are
mutually satisfactory.

 Reduce interdependence between groups:

Interdependency is one of the major causes of conflict. It is necessary to identify and
clarify poorly defined and poorly arranged interdependencies through unifying
workflow. This work flow can be designed either to increase the interdependencies or
to eliminate them entirely. The other option could be to make the two units totally
independent of one another.

32
 Increase resources:
Conflict will occur whenever the wants and needs of two or more parties are greater
than the some of the resource’s available foe allocation. This conflict can be reduced
by planning ahead about the proper distribution of such resources instead of making
haphazard and last-minute allocations.

 Mutual problem solving:

This is one of the most frequently used techniques for increasing collaboration. It
requires the conflicting parties to come together, analyze and define the problem,
understand each other’s viewpoints and arrive at a rational and objective solution
through mutual interactions

 Formal authority:
When two groups are conflicting each other, top management can use authority to
resolve conflict. Management must use Management by Wondering around (MBWA)
technique so management will come to know covert conflict in an organization. The
superior takes up the role of an arbitrator and integrator.

 Increase interactions:
Organizations should provide more opportunities to the employees in subunits to
interact with each other. If people interact with each other not only would they
develop better understanding of each other’s way of functioning but also may
discover common interests, problems and priorities. Appointment of Ombudsperson,
Cross fertilization, merger, rules, procedures and policies also helps in resolving
structure-based conflict in an organization.

No manager should avoid a conflict, hoping it will go away. It would be better to ask
the participants to describe specific actions they want the other party to take. It would
be beneficial to have a third party involved. Finally, it is advisable not to meet
separately with people in conflict.

33
CONFLICT MANAGEMENT STYLES:

34
Conflict management must aim at minimizing affective conflicts at all levels,
attain and maintain a moderate amount of substantive conflict, and also to
match the status and concerns of the two parties in conflict.
Many styles of conflict management behavior have been researched in the past
century.

1. Avoidance (Leave-lose/win):

It is non-assertive and non-cooperative. The manager may think or pretend that no conflict
exists or just ignore it. This strategy is used when the effort to resolve is not worth the salt.
But this approach over the time worsens the situation.

2. Accommodating (Yield-lose/win):
Accommodating is non-assertive and cooperative, just opposite of competing. To solve the
conflict, if someone puts his interests last so as to satisfy concerns of other people by giving
in, sacrificing, or accepting, or yielding to other’s view point, it is called accommodation.

3. Competing (Win/lose):
The style is assertive and non-cooperative. A person puts his/her interests before anyone
else’s interests. It is also known as dominating style. One stands up for his rights and uses all
the power to win his position. There is low relationship orientation. Managers, using this
style, want others to follow his dictates or get his way.

4. Compromising (Mini-win/mini-lose):
It is some assertive and some cooperative. Compromise is on the path toward collaboration,
somewhere between competition and accommodation. The style means mutual give-and-take
to satisfy both parties, or both may say, “Something is better than nothing.” It has equal
distance between competing and accommodating.

5. Collaborating (Win/win):
It is assertive as well as cooperative, just opposite of avoiding. It may also be called
integrative style. This style focuses on satisfying the underlying concerns of both the parties,
meeting many current needs by working together. Through this style, employees develop
ownership and commitment. Sometimes this style gives birth to new mutual needs.

35
 REVIEW OF LITERATURE
Studies to be reviewed have documented that cooperative conflict management can have
important short-term and long-term consequences that protagonists are likely to experience as
beneficial. Experiments have shown that cooperative conflict can be constructive in the short-
term as measured by understanding issues, making quality solutions, and strengthening
relationships. Field studies provide evidence that these effects generalize to various
organizational settings and persist over time. A recent study provides evidence of the value of
being predisposed to manage conflict cooperatively for long-term psychological development
and health (Tjosvold, Huang, Johnson, & Johnson, 2006).

Etty Liberman, Yael Foux Levy and Pertz Segal (2009),

it has been accepted that there is a notion that an internal Conflict Management System for
workplace disputes must be designed to promote a positive work environment. This article
discusses the design and implementation of Conflict Management System for an Israeli
municipality. It assesses how effective the Conflict Management System has been from the
perspective of users on improving interpersonal relationships and creating a positive
workplace atmosphere.

Linda L. Putnam (2007),

discussed on organizational conflict management systems –
the early dispute models such as Adjudication and Arbitration which are replaced by the Non-
union environments characterized by team-based work systems, co-operative partnerships
and joint ventures, participatory and collaborative management systems.

In a study made by
Steve Alper, dean Tjosvold, Kenneth S. Law, (2000),
it was discussed that co-operative approach to conflict leads to conflict efficacy that in turn
results in effective performance as measured by managers.

Michael.R (1989)
quotes in a study on Conflict management and organizational development, that personal
relations in an organization depends on four general forms such as, i) Power and dependency
ii) Negotiating iii) Instrumental, and iv) Socioemotional aspects.

Dean Tjosvold (2007)

states that co-operative relationships exist in an organization when skills to discuss diverse
and conflicting views open-mindedly, combine energy, ideas and knowledge of diverse
people in a highly constructive manner takes place.

In various studies conducted by

Carten K.W. De Dreu (2007) and many researchers, it is discussed that workplace
conflict is quite desirable, should be welcomed and, where possible, stimulated.

George and Jones (2005)

note in a book the view on conflict, although unavoidable, it can often increase organizational
performance, if it is carefully managed and negotiated.

36
Jose M. Guerra, Ines Martinez, Lourdes Munduate and Francisco J.
Medina (2005)
is that the role of organizational culture is more in influencing the nature of conflicts that
occur in the workplace It is found that Task conflicts take place in private organizations with
a high goal-oriented culture compared to public organizations with a low goal-oriented
culture.

According to Ruth Sirman (2008),

Collaborative Leadership is a sound solution to complex problems at workplace. The study
explains the Management style that was ripe for conflict. Collaborative leadership changes
the dynamics and re-establishing a functional workplace, assessing the damage, soliciting
inputs from employees, having a collaborative plan and moving beyond the politics of work.

Patrick Lencoini (2008)

stated five critical success factors to build trust among the team members at workplace. By
building trust conflicts can be managed in a constructive and productive manner.

George Kohlrieser (2007),

there are six essential skills for managing conflict. The researcher enumerated the benefits of
conflicts to a company and how to manage conflict for high performance.

According to Janice L Dreachslin, Dane Kiddy (2006),

there are six main causes of conflict. Viz., unclear expectations, Ineffective or poor
communication, lack of clear jurisdiction, interpersonal styles or attitudes, conflicts of
interests, and organizational change. She also stated the resolving styles of conflicts such as
collaborating, competing, compromising, accommodating, and avoiding. The researcher
suggested the best technique to manage conflict by developing emotional intelligence among
the members of the team or group at workplace.

A study is conducted by Debra Lynn Ravanheimo Casey (2007),

on managing conflicts through organizational ombudsmen programs. This study found that
for that period of study, these programs exist as informal conflict management mechanisms
with different types and conflict management contexts. This study focused on ombudsmen at
the level of the programs and organization that use them in dealing with the world of
workplace conflicts.

Kelly Blayne Warren (2004),

according to this study, the dominating style of conflict management is a style that forces
behavior to win one ‘s position at any cost.

Constance Barrow – Green (2004)

in his study focused on the relationship between the styles of conflict management and the
quality of the dyadic relationship between leader and follower. The study states that effective
leadership is critical to 60 organizational success which influences the styles of leadership
and the relationships exchanged by a leader and a member.

37
Jennifer L Clarke (2003), the study explains the experiential learning as an enabler to
improve conflict management in a work team. The experiential learning program affects the
ability of a work team to effectively manage conflict.

Linda Berens (2010), discusses the essential characteristics of the interaction styles from
the view point of positives, dialogue, differences discussions, decisions, dexterity, unfinished
business discussions. All these characteristics are important for constructive conflict
management at work environment.
Conflicts in manufacturing and service sectors:

C.C. Cheung and K.B. Chua, 1999 carried out a study on Conflict Management
Styles in Hong Kong industries. This paper examines the use of different conflict resolutions
in 63 actual case studies from Hong Kong industries.

The study on promising research opportunities in emotions and coping with conflict by
Ronald H. Humphrey, 2006 discuss the core concepts such as the empathy, the ability
to recognize emotions in others, and the ability to express one's own emotions. These 3
variables are related to moods and job performance, leadership, emotional labour, trust, work
family conflict and stress, promising research areas, suggesting practical ways to help
employees and organizations cope with conflict in the workplace.

The study by Olufemi Adejare Adewole and Olukemi Grace Adebola, 2010 on
Collective bargaining as a strategy for industrial conflict management in Nigeria investigated
the strength of collective bargaining as a strategy for Industrial conflict management and
Industrial harmony among 5 manufacturing Industries randomly sampled in Ibadan, Oyo
State, Nigeria. With the use of a questionnaire administered to 100 respondents, an empirical
study of a descriptive type was carried out on the 65 selected manufacturing industries to
determine the role played by collective bargaining in the resolution of industrial conflicts and
promotion of industrial harmony at the workplace.

Likert, Resins; Likert, Jane G. (1976), describes principles and procedures that
increase the probability of finding a solution to a conflict that is acceptable to all parties.
These principles and procedures are derived from a management system with better resources
for managing conflict than other systems. Emphasis is placed on a generally neglected step in
problem solving that helps keep conflict from intruding into the problem-solving process.

Leslie A. De Church, Michelle A. Marks, (2001) work on "Maximizing the

Benefits of Task Conflict: The Role of Conflict Management" focuses on Intragroup conflict
research has shown that task conflict can improve group outcomes, but it has not addressed
how groups ensure that the positive aspects of task conflict are realized. This study examines
the influence of group conflict management on group effectiveness, as well as the moderating
role of group conflict management on task conflict—group outcome relationships.

Ronald H. Humphrey (2006) presented a study- Promising research opportunities in

emotions and coping with conflict -This study reviews the highlights of the five articles in
this special issue on emotions and coping with conflict. It develops 12 research areas that
offer potential for future research breakthroughs. These areas link the five articles to core
concepts in emotional intelligence/competencies and Affective Events Theory. Particular

38
attention is given to empathy, the ability to recognize emotions in others, and the ability to
express one's own emotions. These three variables are related to moods and job performance,
leadership, emotional labour, trust, work family conflict, and stress. These five articles,
together with the 12 promising research areas, suggest practical ways to help employees and
organizations cope with conflict in the workplace.
Coupland, Christine, (2009). The article focuses on a study which examined the use of
fairy-tale conflict resolution technique. The research included 40 senior 72 managers from a
large manufacturing company in Great Britain. It found that symbolic meaning from myth
can be used to create issues that are usually subdued. Researchers concluded that reframing
events in a fairy-tale format reveals and resolves tensions.

A study of Psychological Reports (2002) was conducted on the Evaluation

of Rahim's Organizational Conflict Inventory-II
as a measure of conflict-handling styles in a sample of Indian salespersons.

Stephen M. Croucher, Kyle J. Holody, Manda V. Hicks, Deepa Omen,

Alfred DeMaris, (2011) "
An examination of conflict style preferences in India". This study sets out to examine conflict
style preferences in India and the predictive effects of various demographic variables on
conflict style preference. Analyses of the demographic variables' predictive influence reveal
that age and sex are significant predictors for all five conflict styles for both Muslims and
Hindus. Education has a mixed predictive influence on conflict style among Hindus and
Muslims.

Bokkasam Sasidhar, Jaba Mukherjee Gupta, Saad Alghanim and Rashid

M. AlHamali (2012)
conducted an exploratory study of interpersonal conflicts in various organizations in India
and in Saudi Arabia. This paper explores possible relationships between the country and
causes of conflict, situation of conflicts, frequency of conflicts, resolution and mode of
resolution of conflicts, and communication as a means of resolution of conflicts. The study
shows that the country has significant impact on "cause of conflict", "resolution of conflicts",
and "the mode of resolution of conflicts" at 5% level of significance.

Thomas, Kenneth W. (Handbook of industrial and organizational

psychology, Vol. 3, 2nd edition),
develop an integrated overview of the complex fabric of variables involved in conflict and
negotiation / the major parts of this fabric include (a) the sequence of events in the
conflict/negotiation process, (b) structural variables which shape that process, (c) outcomes
of the process,

Andrea M. Bodtker, Jessica Katz Jameson, (2001) states that a growing

body of research suggests that conflict can be beneficial for groups and
organizations (e.g., De 76 Dren & Van De Vliert, 1997).
This paper articulates the argument that to be in conflict is to be emotionally activated (Jones,
2000) and utilizes Galtung's (1996) triadic theory of conflict transformation to locate entry
points for conflict generation. Application of these ideas is presented through exemplars that

39
demonstrate the utility of addressing emotions directly in the management of organizational
conflicts.

Hyun O. Lee, Randall G. Rogan, (1991) in a study "A Cross-Cultural

Comparison of Organizational Conflict Management Behaviors, based on
the collectivism-individualism structure,
the study compared organizational conflict management behaviors between Korea (a
collectivistic culture) and the U.S. (an individualistic culture). On the other hand, the effect of
relational distance (in group vs. out group) in determining one's choice of organizational
conflict management styles is found to be minimal. Implications of present findings for future
intercultural communication research are also discussed.

The Relationship between Work/Non-work Role Conflict and Job-Related

Outcomes: Some Unanticipated Findings a study by Donna L. Wiley (1987)
investigated the relationship between multiple dimensions of work/non-work role conflict and
four personal and job-related outcomes. It was predicted that the work/nonwork role conflict
variables would be negatively related to job and life satisfaction, job involvement, and
organizational commitment. Results indicated that various aspects of role conflict are
significantly related to work outcomes, but not always in the expected fashion. Specifically,
conflict between job and family roles was negatively associated with satisfaction measures as
predicted, but was positively related to job involvement and organizational commitment. The
findings suggest that certain job-related attitudes may result in increased levels of inter role
conflict. Implications for theory and practice are discussed.

Gatlin (2007) In his study he found that one in three workers were in workplace conflict
each week. This study also finds that this conflict is bad for their health.

David (2004) in his research at the university of Washington business school. He found
that one disagreeable worker can lead to decrease group perform.

Pekka Aula1 & Kalle Siira (2010) The purpose of the present article is to examine the
prevailing model of systematic organizational conflict management from an organizational
communicative perspective and to suggest directions for improvement.

40
CHAPTER 3:
COMPANY
PROFILE
INDUSTRY
PROFILE

41
42
 FINANCE INDUSTRY:
Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manage money, including credit
unions, banks, credit-card companies, insurance companies, accountancy companies, consum
er-finance companies, stock brokerages, investment funds, individual managers and
some government-sponsored enterprises.[1] Financial services companies are present in all
economically developed geographic locations and tend to cluster in local, national, regional
and international financial centers such as London, New York City, and Tokyo.
Among the thing’s money can buy, there is a distinction between a good (something tangible
that lasts, whether for a long or short time) and a service (a task that someone performs for
you). A financial service is not the financial good itself—say a mortgage loan to buy a house
or a car insurance policy—but something that is best described as the process of acquiring the
financial good. In other words, it involves the transaction required to obtain the financial
good. The financial sector covers many different types of transactions in such areas as real
estate, consumer finance, banking, and insurance. It also covers a broad spectrum of
investment funding, including securities
But distinctions within the financial sector are not neat. For example, someone who works in
the real estate industry, such as a mortgage broker, might provide a service by helping
customers find a house loan with a maturity and interest rate structure that suits their
circumstances. But those customers could also borrow on their credit cards or from a
commercial bank. A commercial bank takes deposits from customers and lends out the
money to generate higher returns than it pays for those deposits. An investment bank helps
firms raise money.

At its heart, the financial sector intermediates. It channels money from savers to borrowers,
and it matches people who want to lower risk with those willing to take on that risk. People
saving for retirement, for example, might benefit from intermediation. The higher the return
future retirees earn on their money, the less they need to save to achieve their target
retirement income and account for inflation. To earn that return requires lending to someone
who will pay for the use of the money (interest). Lending and collecting payments are
complicated and risky, and savers often don’t have the expertise or time to do so. Finding an
intermediary can be a better route.

Some savers deposit their savings in a commercial bank, one of the oldest types of financial
service providers. A commercial bank takes in deposits from a variety of sources and pays
interest to the depositors. The bank earns the money to pay that interest by lending to
individuals or businesses. The loans could be to a person trying to buy a house, to a business
making an investment or needing cash to meet a payroll, or to a government.

The bank provides a variety of services as part of its daily business. The service to depositors
is the care the bank takes in gauging the appropriate interest rate to charge on loans and the
assurance that deposits can be withdrawn at any time. The service to the mortgage borrower
is the ability to buy a house and pay for it over time. The same goes for businesses and

43
governments, which can go to the bank to meet any number of financial needs. The bank’s
payment for providing these services is the difference between the interest rates it charges for
the loans and the amount it must pay depositors.

Another type of intermediation is insurance. People could save to cover unexpected expenses
just as they save for retirement. But retirement is a more likely possibility than events such as
sickness and auto accidents. People who want to cover such risks are generally better off
buying an insurance policy that pays out in the event of a covered event. The insurance
intermediary pools the payments (called premiums) of policy buyers and assumes the risk of
paying those who get sick or have an accident from the premiums plus whatever money the
company can earn by investing them.

Providers of financial services, then, help channel cash from savers to borrowers and
redistribute risk. They can add value for the investor by aggregating savers’ money,
monitoring investments, and pooling risk to keep it manageable for individual members. In
many cases the intermediation includes both risk and money. Banks, after all, take on the risk
that borrowers won’t repay, allowing depositors to shed that risk. By having lots of
borrowers, they are not crippled if one or two don’t pay. And insurance companies pool cash
that is then used to pay policy holders whose risk is realized. People could handle many
financial services themselves, but it can be more cost effective to pay someone else to do it.

Regulation
Financial services are crucial to the functioning of an economy. Without them, individuals
with money to save might have trouble finding those who need to borrow, and vice versa.
And without financial services, people would be so intent on saving to cover risk that they
might not buy very many goods and services.

Moreover, even relatively simple financial goods can be complex, and there are often long
lags between the purchase of a service and the date the provider has to deliver the service.
The market for services depends a great deal on trust. Customers (both savers and borrowers)
must have confidence in the advice and information they are receiving.
For example, purchasers of life insurance count on the insurance company being around when they
die. They expect there will be enough money to pay the designated beneficiaries and that the
insurance company won’t cheat the heirs.

The importance of financial services to the economy and the need to foster trust among
providers and consumers are among the reason’s governments oversee the provision of many
financial services. This oversight involves licensing, regulation, and supervision, which vary
by country. In the United States, there are a number of agencies—some state, some federal—
that supervise and regulate different parts of the market. In the United Kingdom, the
Financial Services Authority oversees the entire financial sector, from banks to insurance
companies.

Financial sector supervisors enforce rules and license financial service providers. Supervision
can include regular reporting and examination of accounts and providers, inspections, and
investigation of complaints. It can also include enforcement of consumer protection laws,
such as limits on credit card interest rates and checking account overdraft charges. However,
the recent sudden growth in the financial sector, especially as a result of new financial
instruments, can tax the ability of regulators and supervisors to rein in risk. Regulations and

44
enforcement efforts cannot always prevent failures—regulations may not cover new
activities, and wrongdoing sometimes escapes enforcement. Because of these failures,
supervisors often have the authority to take over a financial institution when necessary.

The role of mortgage-backed securities in the recent crisis is an example of new financial
instruments leading to unexpected consequences. In this case, financial firms looking for
steady income streams bought mortgages from the originating banks and then allocated
payments to various bonds, which paid according to the mortgages’ underlying performance.
Banks benefited by selling the mortgages in return for more cash to make additional loans,
but because the loan makers did not keep the loans, their incentive to check borrowers’
creditworthiness eroded. The mortgages were riskier than the financial firms that bought
them anticipated, and the bonds did not pay as much as expected. Borrowers were more
likely to default because of their lower income, which reduced the amount bondholders took
in—both of which hurt gross domestic product growth. Mortgage-backed securities were
initially intended to help mitigate risk (and could have done so under the right
circumstances), but they ended up increasing it.

Productive uses of financial services

Financial services help put money to productive use. Instead of stashing money under their
mattresses, consumers can give their savings to intermediaries who might invest them in the
next great technology or allow someone to buy a house. The mechanisms that intermediate
these flows can be complicated, and most countries rely on regulation to protect borrowers
and lenders and help preserve the trust that underpins all financial services.

What do they do?

These are some of the foremost among the myriad financial services.

Insurance and related services

• Direct insurers pool payments (premiums) from those seeking to cover risk and make
payments to those who experience a covered personal or business-related event, such as an
automobile accident or the sinking of a ship.
• Reinsurers, which can be companies or wealthy individuals, agree, for a price, to cover
some of the risks assumed by a direct insurer
. • Insurance intermediaries, such as agencies and brokers, match up those seeking to pay to
cover risk with those willing to assume it for a price. Banks and other financial service
providers
• Accept deposits and repayable funds and make loans: Providers pay those who give them
money, which they in turn lend or invest with the goal of making a profit on the difference
between what they pay depositors and the amount they receive from borrowers
. • Administer payment systems: Providers make it possible to transfer funds from payers to
recipients and facilitate transactions and settlement of accounts through credit and debit
cards, bank drafts such as checks, and electronic funds transfer
. • Trade: Providers help companies buy and sell securities, foreign exchange, and
derivatives
. • Issue securities: Providers help borrowers raise funds by selling shares in businesses or
issuing bonds

45
. • Manage assets: Providers offer advice or invest funds on behalf of clients, who pay for
their expertise.

A 'financial system' is a system that allows the exchange of funds between lenders, investors,
and borrowers. Financial systems operate at national and global levels. [1] They consist of
complex, closely related services, markets, and institutions intended to provide an efficient
and regular linkage between investors and depositors.
A modern financial system may include banks (public sector or private sector), financial
markets, financial instruments, and financial services. Financial systems allow funds to be
allocated, invested, or moved between economic sectors. They enable individuals and
companies to share the associated risks.

GLOBAL FINANCIAL SYSTEM

The global financial system is the worldwide framework of legal agreements, institutions,
and both formal and informal economic actors that together facilitate international flows
of financial capital for purposes of investment and trade financing. Since emerging in the late
19th century during the first modern wave of economic globalization, its evolution is marked
by the establishment of central banks, multilateral treaties, and intergovernmental
organizations aimed at improving the transparency, regulation, and effectiveness of
international markets.[1][2]:74[3]:1 In the late 1800s, world migration and communication
technology facilitated unprecedented growth in international trade and investment. At the
onset of World War I, trade contracted as foreign exchange markets became paralyzed
by money market illiquidity. Countries sought to defend against external shocks with
protectionist policies and trade virtually halted by 1933, worsening the effects of the
global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs
worldwide. Efforts to revamp the international monetary system after World War II improved
exchange rate stability, fostering record growth in global finance.

A country's decision to operate an open economy and globalize its financial capital carries
monetary implications captured by the balance of payments. It also renders exposure to risks
in international finance, such as political deterioration, regulatory changes, foreign exchange
controls, and legal uncertainties for property rights and investments. Both individuals and
groups may participate in the global financial system. Consumers and international
businesses undertake consumption, production, and investment. Governments and
intergovernmental bodies act as purveyors of international trade, economic development, and
crisis management. Regulatory bodies establish financial regulations and legal procedures,
while independent bodies facilitate industry supervision. Research institutes and other
associations analyse data, publish reports and policy briefs, and host public discourse on
global financial affairs.

While the global financial system is edging toward greater stability, governments must deal
with differing regional or national needs. Some nations are trying to systematically
discontinue unconventional monetary policies installed to cultivate recovery, while others are
expanding their scope and scale. Emerging market policymakers face a challenge of precision
as they must carefully institute sustainable macroeconomic policies during extraordinary

46
market sensitivity without provoking investors to retreat their capital to stronger markets.
Nations' inability to align interests and achieve international consensus on matters such as
banking regulation has perpetuated the risk of future global financial catastrophes.
Suppliers of financial services „ Banks „ Insurance companies „ Building societies „ Credit
card issuers (VISA, MasterCard, AMEX) „ Investment trusts „ Stock exchanges „ Factoring
and leasing companies „ Unit trusts (collectors of funds from individual investors, who invest
the total amount in shares of companies traded in a stock exchange) „ Retailers

THE COMPONENTS OF FINANCIAL SYSTEM:

1)FINANCIAL INSTITUTIONS:

Otherwise known as banking institutions, are corporations that provide services as

intermediaries of financial markets. Broadly speaking, there are three major types of financial
institutions:

1)Depository institutions – deposit-taking institutions that accept and manage deposits and
make loans, including banks, building societies, credit unions, trust companies, and mortgage
loan companies;

2)Contractual institutions – insurance companies and pension funds

3)Investment institutions – investment banks, underwriters, brokerage firms.

4)Financial institutions can be distinguished broadly into two categories according to

ownership structure:

 Commercial Banks
 Cooperative Banks

Merits
Merits of raising funds through financial institutions are as follows:

1. Financial institutions provide long term finance, which are not provided
by commercial banks;
2. The funds are made available even during periods of depression, when other sources
of finance are not available;
3. Obtaining loan from financial institutions increases the goodwill of the borrowing in
the capital market. Consequently, such a company can raise funds easily from other
sources as well;
4. Besides providing funds, many of these institutions provide financial, managerial and
technical advice and consultancy to business firms;
5. As repayment of loan can be made in easy instalments, it does not prove to be much
of burden on the business.

47
Regulatory structures differ in each country, but typically involve prudential regulation as
well as consumer protection and market stability.

Some countries have one consolidated agency that regulates all financial institutions while
others have separate agencies for different types of institutions such as banks, insurance
companies and brokers.

2)BANKS
Banks are financial intermediaries that lend money to borrowers to generate revenue and
accept deposits . They are typically regulated heavily, as they provide market stability and
consumer protection. Banks include:

 Public banks
 Commercial banks: A commercial bank is a type of bank that provides services such
as accepting deposits, making business loans, and offering basic investment products
that is operated as a business for profit.
 Central banks: A central bank, reserve bank, or monetary authority is an
institution that manages the currency, money supply, and interest rates of a state or
formal monetary union,[1] and oversees their commercial banking system.
 Cooperative banks: Cooperative banking is retail and commercial banking organized
on a cooperative basis. Cooperative banking institutions take deposits and lend money
in most parts of the world.
 Cooperative banking, as discussed here, includes retail banking carried out by credit
unions, mutual savings banks, building societies and cooperatives, as well as
commercial banking services provided by mutual organizations (such as cooperative
federations) to cooperative businesses.
 State-managed cooperative banks: The state cooperative bank is a federation of the
central cooperative bank and acts as custodian of the cooperative banking structure
in the State. ... State-owned cooperative banks lend money
to cooperative central banks and to primary companies and not directly to farmers.

 State-managed land development banks: similar to cooperative banks.

3)NON-BANK FIANCIAL INSTITUTIONS:

Non-bank financial institutions facilitate financial services like investment, risk pooling,
and market brokering. They generally do not have full banking licenses. [5] Non-bank financial
institutions include:

 Finance and loan companies

 Insurance companies
 Mutual funds
 Commodity traders

NBFIs supplement banks by providing the infrastructure to allocate surplus resources to

individuals and companies with deficits. Additionally, NBFIs also introduces competition in

48
the provision of financial services. While banks may offer a set of financial services as a
packaged deal, NBFIs unbundle and tailor these services to meet the needs of specific clients.
Additionally, individual NBFIs may specialize in one particular sector and develop an
informational advantage. Through the process of unbundling, targeting, and specializing,
NBFIs enhances competition within the financial services industry.

4)FINANCIAL MARKETS:
A financial market is a market in which people trade financial securities and derivatives at
low transaction costs. Some of the securities include stocks and bonds, and precious metals.
The term "market" is sometimes used for what are more strictly exchanges, organizations that
facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange. This
may be a physical location (such as the NYSE, LSE, JSE, BSE) or an electronic system (such
as NASDAQ). Much trading of stocks takes place on an exchange; still, corporate
actions (merger, spinoff) are outside an exchange, while any two companies or people, for
whatever reason, may agree to sell stock from the one to the other without using an exchange.
Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on
a stock exchange, and people are building electronic systems for these as well, to stock
exchanges.

Primary markets
The primary market (or initial market) generally refers to new issues of stocks, bonds, or
other financial instruments. The primary market is divided in two segments, the money
market and the capital market. The primary market is the part of the capital market that
deals with the issuance and sale of equity-backed securities to investors directly by the issuer.
Investor buy securities that were never traded before. Primary markets create long term
instruments through which corporate entities raise funds from the capital market. [1] It is also
known as the New Issue Market (NIM).

Secondary markets
The secondary market refers to transactions in financial instruments that were previously
issued. Another frequent usage of "secondary market" is to refer to loans which are sold by
a mortgage bank to investors

Financial instruments
Financial instruments are tradable financial assets of any kind. They include money, evidence
of ownership interest in an entity, and contracts. International Accounting Standards IAS 32
and 39 define a financial instrument as "any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity"

Cash instruments
cash instrument's value is determined directly by markets. They may include
securities, loans, and deposits.

49
FINANCIAL SERVICES IN INDIA | HISTORY AND TRENDS

The financial services sector in India, which accounts for 6 percent of the nation’s GDP, is
growing rapidly. Although the sector consists of commercial banks, development finance
institutions, nonbanking financial companies, insurance companies, cooperatives, mutual
funds, and the new “payment banks,” it is dominated by banks, which holds over 60 percent
share.

The Reserve Bank of India (RBI) is the apex bank of the country, controlling all activities in
the financial sector. Commercial banks include public sector and private sector banks and are
under the regulatory supervision of the RBI. Development finance institutions include
industrial and agriculture banks.

Non-banking finance companies (NBFC) provide loans, purchase stocks and debentures, and
offer leasing, hire purchase, and insurance services.

Insurance companies function in both public and private sectors and are controlled by the
Insurance Regulatory and Development Authority (IRDA).

India also has a vibrant capital market with stocks exchanges controlled by the Securities and
Exchange Board of India (SEBI).

According to “India in Business,” a website of the Union Government, India’s banking sector
assets were worth $1.8 trillion in the 2014-15 financial year.

According to a report by KPMG-CII, India’s banking sector is on the way to becoming the
fifth largest in the world by 2020. The country’s life insurance sector is the biggest in the
world, and the market size is expected to touch about $400 billion by 2020.

The assets of the mutual fund industry are worth $190 billion. The pension corpus fund is
projected to record $1 trillion by 2025. Reforms to put the financial services industry and the
economy on the fast track include measures to make finance available to medium, small, and
micro industries.

India once had a heavily government-dominated financial services industry, and most
services were provided by nationalised banks. Financial sector reforms were initiated in 1991
with the aim of accelerating economic growth.

In the following years, industry and service sectors were opened up for foreign direct
investment. The reforms ended the dominance of the public sector and reduced direct
government control on industrial investments.

50
Financial sector reforms in India have improved resource mobilisations and allocation. The
liberalisation of interest rates and the easing of cash reserve norms have helped make funds
available to various sectors.

However, prudential norms have been tightened and transparency and regulation increased to
avoid a systemic collapse that other countries have suffered.

FINANCIAL SERVICES IN THE REST OF ASIA

Asia, particularly the eastern region, faced a severe setback with the 1997-98 financial crisis
that started with the collapse of the Thai baht and Thailand’s near bankruptcy.

However, the Asian financial sector, particularly banks, has lived to see better days. The
middle-income nations in the region have been able to strengthen their stock markets and
their nonbanking financial sector.

However, the financial services sector in the region is lagging way behind that in the US and
Europe. But the potential to develop is huge and the sector is developing rapidly.

Along with opportunities for development, the sector also faces threats to stability. Reforms
and regulatory measures have to be quickly initiated.

Types of financial services | List and overview

Brief profiles of some of the services offered by the financial services sector are given below.

Accounting
Accounting is the process of measuring the financial parameters of a company and presenting
them to investors and managers of the company for making investment decisions and
evolving management strategies.

Brokerage
A firm that functions as an agent for the purchase of stocks or other financial securities is
known as a brokerage. Full-service brokerage firms study the market and advise their clients
on which securities to buy. Portfolio and pension fund managers are among their clients.

Consumer finance
The grant of loans or other credit lines to consumers is called consumer finance, and includes
auto loans and credit cards.

Credit cards

51
Credit cards are instruments that help the cardholder to make payments for goods or services
without using cash. The bank issuing a credit card offers the cardholder a line of credit on
which an interest is charged.

Foreign exchange
is the conversion of one currency into another by individuals or corporations for completing
transnational deals. It is the biggest segment of the financial market, and its daily turnover
runs into trillions of dollars.

Hedge funds
Hedge funds are private limited investment partnerships that use a large initial investment.
They have low liquidity, and funds usually have a lock-up period of at least one year. Hedge
funds are flexible and help investors spread their risk through their diverse investment
opportunities.

Insurance
Insurance is a risk management tool that an individual or company uses to transfer risk of
financial loss to an insurance company in return for a one-time or periodic premium.

Investment banking
An investment bank enables corporations to raise capital and assists them in issuing stocks.
Investment banks underwrite new debts and equity securities for companies. They provide
their clients guidance in mergers and acquisitions.

Private banking
Private banking is the set of speciality financial services offered by banks to high-net-worth
individuals who make very large investments.

Private equity
Private equity is a method by which an investor takes control of a significant portion of a
company’s stock in the hope of maximising his or her returns. A typical method of operation
of a private equity fund is to take control of a company and use its returns to repay
themselves.

Retail banking
Retail banking services are offered to individuals rather than to organisations. Retail banking
helps people open savings accounts, take personal and housing loans, make deposits, and use
credit/debit and ATM cards.

Venture capital
Venture capital is the initial seed money provided by an investor to the holder of a new,
potentially financially rewarding business idea for a share in the returns of the start-up

52
business. Venture capital companies make investments from a long-term perspective. Venture
capital funds are a big boon for start-ups that do not have access to financial markets.

Wealth management
Wealth management (or asset management) is a strategy to help the affluent maximise returns
from their investments by alerting them to investment opportunities and helping them choose
appropriate financial products.

CONCLUSION:

Financial services form the lifeblood of economic growth and development. They facilitate
the setting up of big and small businesses and the expansion of businesses. Employment and
entrepreneurship created with the help of the services enable people to earn and save.

Financial services show the poor ways out of poverty and of leading better lives. To the
wealthy, financial services offers opportunities to make money grow.

The financial services industry is the largest-earning sector in the world. Through
interventions in industry and agriculture and other formal sectors, they provide lines of credit
and investment.

However, financial services have largely eluded the poor and small and micro units, and there
is great potential to extend the services to the informal sector, too. Perhaps, the future of the
financial sector lies here.

53
COMPANY PROFILE:

54
 SHRI RAM LIFE INSURANCE COMPANY LIMITED

Shriram Life Insurance Company Limited is a Public incorporated on 15 March 2005. It is

classified as non-government company and is registered at Registrar of Companies
Hyderabad. Its authorized share capital is Rs. 2,500,000,000 and its paid-up capital is
Rs.1,793,750,020. It is involved in insurance and pension funding, except compulsory social
security.

Shriram Life Insurance Company Limited’s Annual General Meeting (AGM) was last held
on 23 July 2018 and as per records from Ministry of Corporate Affairs (MCA), its balance
sheet was last filed on 31 March 2018.

Directors of Shriram Life Insurance Company Limited Corporate Identification Number is

(CIN) U6610TG2005PLCO45616 and its registration number is 45616. Its Email address is
samatha.k@shriramlife.com and its registered address is RAMKY SELENIUM, PLOT NO
31 AND 32, FINANCIAL DISTRICT, GACHIBOWLI, HYDERABAD TG 500032 IN

Current status of Shriram Life Insurance Company Limited is- Active.

COMPANY DETAILS

CIN : U66010TG2005PLCO45616

Company Name : SHRIRAM LIFE INSURANCE COMPANY LIMITED

Company Status : Active

ROC : ROC- Hyderabad

Registration number : 45616

Company category : Company limited by shares

55
Company Sub Category : non-govt company

Class of company : Public

Date of incorporation : 15 March 2005

Age of company : 14 years, 9 month, 24 days

Activity : Insurance and pension funding, except compulsory social security

Shriram Life Insurance Company, also known as (SLIC) was founded in the year 2005 and
commenced operations in the year 2006. SLIC is well known for their efficient use of capital
and low operational costs. Total number of insured lives is more than 26 lakhs.

Shri ram life insurance company is a joint venture between Shriram Group founded in 1974,
headquartered in Chennai and Sanlam, a leading financial services group based in Cape
Town, South Africa. Together, Sanlam and Shriram group aims to provide the best life
insurance products to cater different segments of Indian market. In 2016, Shriram life
insurance company received the Bizz Americas 2016 Awards. The company objective aims
in ‘reaching out to the common man with products and services that would be helpful to
him/her as they set out on the path to prosperity’.

Highlights of Shriram Life Insurance:

 Shriram Life has more than 528 branches with over and above 1.45 crore customers.
 Shriram Life clocked Rs.1020 crore gross premiums in 2015-2016.
 The company has a network of 609 offices and 75000 agents across India
 Shriram has an outstanding underwriting record and has awarded as ‘underwriting
initiative of the year’.
 Shriram life insurance generates more than 40% business through providing insurance
to rural area and weaker segment individuals – ‘AAM AADMI’ of India.
 The Founder of Shriram Group, Mr. R Thyagarajan, has been awarded with Padma
Bhushan award.

56
 BENEFITS OF SHRI RAM LIFE INSURANCE:

 Financial protection: Plans which provide financial protection to your family.

 Flexibility: Flexible premium and payout options.
 Online plans: Specifically designed online plans that costs lower
 Variety: Offers a variety of online as well as offline plans
 Customer service: Offers good, hassle-free pre sales and post sales services
 Tax benefits: Save tax on all premiums and payouts under the section 80C and
10(10D) of Income Tax Act, 1961

57
DOCUMENTATION NEEDED TO APPLY FOR A SHRI RAM
LIFE INSURANCE POLICY:

The most common type of documentation comprises of the following the information is
available on the official website of SLIC shriramlife.com/download-forms.

Proposal form:
The form which is to be filled in by the insured in written or electronic or any other format as
approved by the authority, for furnishing all material information as required by the insurer in
respect of a risk, in order to enable the insurer to take informed decision in the context of
underwriting the risk, and in the event of acceptance of the risk, to determine the rates,
advantages, terms and conditions of the cover to be granted.

Know Your Customer (KYC):

58
Identity, address, income and age proof.

MISSION AND VISION OF THE COMPANY:

The Shriram Life Insurance Company was founded with the objective of reaching out to the
“common man” with products and services that would be helpful to him as he sets out on the
path to “prosperity”.

Operational efficiency, integrity and a strong focus on catering to the needs of the average
Indian, by offering him high quality and cost-effective products and services, are the core
values that drive the organization. These values have been strongly adhered to over the
decades and are now an integral part of the organization DNA.

The company prides itself on its deep understanding of the customer. Each product or service
is tailor-made to specifically suit the needs of the customer. It is the guiding philosophy of

59
putting people first that has brought the group company closer to the grassroots and has made
it the preferred choice for all truck financing requirements amongst the customers.

SHRIRAM LIFE INSURANCE PLANS:

1)LIFE PLAN:
The Shriram New Shri Life Plan offers the double benefit of savings and protection for
policyholders. It is a non-linked non-participating endowment plan, which guarantees the
financial wellbeing of a person insured’s family in case he/she meets an untimely death.
Besides offering the sum assured upon maturity, the Shri Life Plan also provides a
reversionary bonus as part of the payout. Nominees also have the option to choose between
different payout options depending on their needs and requirements.

Eligibility - Who is the Shriram New Shri Life Plan for?

60
 Criteria Eligibility

Minimum: 30 days Maximum: 65 years (as of last

Age at entry
birthday)

Maturity age (in years) Minimum: 18 years Maximum: 75 years

Riders Available

People looking to avail the Shriram New Shri Life Plan are expected to meet the eligibility
criteria set by the company. Here’s what it looks like:

Plan Coverage - What the Shriram New Shri Life Plan covers?

Benefit Details

If the person assured dies during the policy tenure and has paid all the premiums. The pay-out
Death will be the total of the sum assured on death, including any applicable reversionary and
Benefit terminal benefits as mentioned in the policy. The lowest death benefit payable will be 105% of
the total premiums paid at the time of death.

Maturity Upon maturity of the policy, the total benefit payable will include the sum assured along with
Benefit any applicable reversionary and terminal benefits as mentioned in the policy.

2)ULIP PLAN:

Shriram Life Growth Plus (UIN: 128L066V02) is a savings-oriented unit linked insurance
plan which offers both life cover and savings through market linked returns. The plan offers
multiple choices in respect of premium payment, fund classes and flexibility of investment.
This ULIP Insurance policy can also be taken on other lives, where other lives can be spouse,
child and grandchild.

Why SLIC’s ULIP

 Multiple fund options and flexibility to switch between funds

 Flexibility to select two different death benefit options

61
  Lowest investable premium starting at
Rs. 4,000/- per month

 Attractive loyalty additions on

the maturity

 Premium payment options –

Single, Regular and Limited

3)TERM PLAN:

A term insurance plan is a specific type of life insurance policy that provides protection for a
definite period of time or ‘term’. In the event of the unfortunate demise of the insured person
during the specified term, the insurance company pays the beneficiaries of the insured a pre-
determined sum of money. Term plans are the most economical plans of all life insurance
policies as they provide life cover at cheaper premiums. These however do not provide any
maturity benefits.

ENTRY AGE
Minimum:18 Yrs.
Maximum: 55 Yrs.
(As on last birthday)

62
 MATURITY AGE
Minimum: 28 Yrs.
Maximum: 75 Yrs.
(As on last birthday)
POLICY TERM
Minimum: 10 Yrs.
Maximum: 57 Yrs.
(Premium paying term shall be the same)
SUM ASSURED
Minimum: ₹ 25 Lakhs
Maximum: ₹ 10 Crore
(in multiples of 1 lakh)
CRITICAL ILLNESS COVER
Minimum: ₹ 5 Lakhs
(Maximum 20% of Sum Assured subject to a limit of ₹ 20 lakh)
ACCIDENTAL DEATH BENEFIT COVER
Minimum: ₹ 10 Lakhs
(Maximum 100% of Sum Assured subject)

4)PLANS FOR WOMEN:

Benefits of Shriram Women Life Insurance Plans:
There are several benefits of the Shriram Women Life Insurance Plans. They are listed
below:
 Women Life Insurance Plans offered by Shriram Life makes sure that your family’s future
is financially secure in case you encounter permanent disability or death in an unfortunate
event.
 The plan ensures that people dependent on you can lead a stress-free life even when you
are not around to take care of them. Several women have younger siblings and aging
parents who are dependent.
 In case you are a mother, the plan takes care of the education expenses for your child.
 The plan allows you to enjoy a suitable plan for retirement and secures your future. This is
applicable to women who are home makers or do not have any fixed income source.
 The plan offers financial stability if the spouse encounters death or permanent disability.

63
Types of Shriram Women Life Insurance Plans:
There are different types of insurance plans offered by Shriram Life. They are mentioned
below:
Shriram Life Term Insurance:
The term insurance policies provide financial security to the family or the loved one’s
dependent on you. They provide a good cover and allows your close ones to enjoy a peaceful
life in an unfortunate event of your demise. Economic status of your family does not go for a
toss in such a situation as the insurance pay-out helps them to stabilise their condition.
Shriram Life Child Insurance:
For the women who have children, the child insurance policies can be really useful. It is
definitely one of the best ways to secure the future of your child. The insurance policies let
you save a substantial amount for your child. This money can be used for his/her education,
higher studies, marriage, etc. By purchasing such policies, you make sure that there is a
continuous cash flow at the different stages of your child’s life.
Shriram Life Retirement Insurance:
Retirement or pension plans allow you to save substantially for meeting your needs and
requirements after you are retired. You will not have to worry about a steady cash flow in
these golden years of life. You will be able to lead an independent even after your retirement.
Shriram Life Health Insurance:
Various types of health insurance plans are tailored to cater to the health requirements and
needs of women. These insurance policies offer coverage for different critical illnesses for
married women, single ladies, working mothers and single mothers. There are some other
insurance plans as well that provide cover for risks associated with travel and personal
accident.

Shriram Shri Vivah Plan:

This plan is affordable and easy to get. This plan helps you to meet the expenses of a
wedding. It offers great financial security for your loved ones and you. In case of an
unfortunate event where the insured encounters death, the lump sum payment will help your
family to take care of the financial issues.

Maturity Age Premium

Plan Name Entry Age (yrs.)
(yrs.) Payment Mode

Shriram Minimum age at entry – Maximum age at Monthly,

Shri Vivah 18 years. Maximum age maturity – 70 quarterly, half
Plan at entry – 50 years. years. yearly and yearly.

AWARDS WON BY SHRI RAM LIFE INSURANCE

COMPANY:
64
1. The Bizz Americans 2016 awards Shri ram life insurance.

2. Best life insurance company BFSI- Award, ABP News.

3. International arch of Europe award Frankfurt 2015

4. Indian insurance award for non-urban coverage life insurance intellect pvt.ltd

5. Managerial excellence award 2015 for excellence in diverse areas madras

management association.

CHPATER-4

DATA ANALYSIS
AND
INTERPRETATION
65
1. Statement showing types of conflicts an organization came
across:
OPTIONS RESOPONDENTS PERCENTAGE
Employee conflicts 15 30%
Management and 22 44%
employee conflicts
Management 04 08%
conflicts
Others 10 20%
Total 50 100%

66
 others 20%

management conflict 8%

management and employee conflict 44%

employee conflicts 30%

INTERPRETATION:
From the above graph 30% is for employee conflicts, 44% is for management
and employee conflicts, 08% for management conflicts, 20% is for others.

2. Statement showing how an organization deals with a conflict

among employees:

OPTIONS RESPONDENTS PERCENTAGE

By imposing 15 30.6
decisions
By negotiating 17 34.7%
Avoiding the conflict 15 30.6%
Others 3 6.1%
Healthy discussions 1 02%
Total 50 100%

67
 healthy discussions2.00%

others 6.10%

avoiding the conflict 30.60%

by negotiating 34.70%

by imposing decisions 30.60%

INTERPRETATION:
From the above graph 30.6% is by imposing decisions, 34.7% is by negotiating,
30.6% is avoiding the conflict, 6.1% is by others, 02% is healthy discussions.

3. Statement showing the consequences that an organization faces

whenever conflict arises within the organization.
OPTIONS RESOPONDENTS PERCENTAGE
Decrease in 26 52%
productivity
Effect on the 14 28%
working
environment
Grouping among 6 12%
employees
Others 6 12%
total 50 100%

68
 52%

28%

12% 12%
ity

rs
s
t

ee
en

he
tiv

oy
nm

ot
uc

pl
iro
od

m
nv

ge
pr

ge
in

on
se

am
ki
ea

or

ng
cr

pi
de

ou
th

gr
n
to
ec
e ff

INTERPRETATION:
From the above graph 52% is decrease in productivity, 28% is effect on the
working environment, 12% is for grouping among employees, 12% is for
others.

4. Statement showing the major sources of conflicts in your

organization
OPTIONS RESOPONDENTS PERCENTAGE
Suppliers conflicts 07 14%
Management 22 44%
conflicts
Employee conflicts 12 24%
Others 10 20%
Total 50 100%

69
 44%

24%
20%

14%

s s s s
i ct i ct i ct h er
o nfl nfl nfl o t
c tc
o co
rs en
e
il e o ye
p p em pl
su ag em
an
m

INTERPRETATION:
From the above graph 14% is for suppliers’ conflicts, 44% is for management
conflicts, 24% employee conflicts, 20% is others

5. Statement showing is conflict valued for your organization

OPTIONS RESPONDENTS PERCENTAGE

Agree 17 34%
Disagree 09 18%
Highly agree 10 20%
Highly disagree 04 04%
Neither agree nor 10 20%
disagree
Total 50 100%

70
 neither agree nor disagree 20%

highly disagree 4%

highly agree 20%

disagree 18%

agree 34%

INTERPRETATION:
From the above graph 34% agree, 18% disagree, 20% highly agree, 04% highly
disagree, 20% neither agree nor disagree.

6. Statement showing does conflict provides an opportunity for

change.
OPTIONS RESPONDENTS PERCENTAGE
Agree 25 50%
Disagree 10 20%
Highly agree 2 4%
Highly disagree 3 6%
Neither agree nor 10 20%
disagree
Total 50 100%

71
 20%

6%

50%

4%

20%

agree disagree highly agree

highly disagree neither agree nor disagree

INTERPRETATION:
From the above graph 50% agree, 20% disagree, 4% highly agree, 6% highly
disagree, 20% neither agree nor disagree.

7. Statement showing at what level the conflict occurs in your

organization.
OPTIONS RESOPONDENTS PERCENTAGE
Top level 9 18%
Middle level 27 54%
Bottom level 8 16%
All levels 8 16%
Total 50 100%

72
 15%
17%

15%

52%

top level middle level bottom level all levels

INTERPRETATION:
From the above graph 18% is top level, 54% is middle level, 16% is bottom
level, 16% is all levels.

8. Statement showing if feedback is always welcomed.

73
 OPTIONS RESOPONDENT PERCENTAGE
S
Agree 29 58%
Disagree 13 26%

Highly 5 10%
agree
Highly 3 6%
disagree
total 50 100%

6%
10%

26% 58%

agree disagree
highly agree highly disagree

INTERPRETATION:
From the above graph 58% agree, 26% disagree, 10% highly agree, 6% highly
disagree.

74
 9. Statement showing do people know what procedures are
available for conflict management.
OPTIONS RESOPONDENTS PERCENTAGE
Yes 43 86%
No 9 18%
Total 50 100

17%

yes no

83%

INTERPRETATION:
From the above graph 86% are yes, 18% are no.

75
 10. Statement showing how many people know how to use
conflict resolving procedure.
OPTIONS RESOPONDENTS PERCENTAGE
20-40 20 40%
40-60 15 30%
60-80 7 14%
80-100 9 18%
Total 50 100%

18%

39%
14%

29%

20-40 40-60 60-80 80-100

INTERPRETATION:
From the above graph 40% are 20-40, 30% are 40-60, 14% are 60-80, 18% are
80-100.

76
 11. Statement showing if the organization have the resources
to deal with conflicts.
OPTIONS RESPONDENTS PERCENTAGE

Yes 44 88%

No 6 12%

Total 50 100%

88%

12%

yes no

INTERPRETATION:
From the above graph 88% is yes, 12% is no.

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 12. Statement showing disputants have the right to participate
in decision making.
OPTIONS RESPONDENTS PERCENTAGE
Agree 30 60%
Disagree 6 12%
Highly agree 7 14%
Highly disagree 0 0%
Neither agree nor 7 14%
disagree
Total 50 100%

60%

12% 14% 14%

0%
agree disagree highly agree highly neither agree
disagree nor disagree

INTERPRETATION:
From the above graph 60% are agree, 12% disagree, 14% highly agree, 0%
highly disagree, 14% neither agree nor disagree.

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13. Statement showing is conflict always bad.
OPTIONS RESPONDENTS PERCENTAGE
Agree 26 52%
Disagree 6 12%
Highly agree 6 12%
Highly disagree 0 0%
Neither agree nor 12 24%
disagree

30%

57%

7%

7%

agree disagree
highly agree highly disagree
neither agree nor disagree

INTERPRETATION:
From the above graph 52% agree, 12% disagree, 12% highly agree, 0%
highly disagree, 24% neither agree nor disagree.

79
14. Statement showing what individual employees observe in
conflicts in which anger, threat etc. are present, what they intend
to do?
OPTIONS RESPONDENTS PERCENTAGE
Involve and take 13 26%
position
Attempt to 24 48%
mediate
Observe and see 9 18%
what happens
Leave quickly 7 14%
Total 50 100%

13%

25%

17%

45%

involve and take position attempt to mediate

observe and see what happens leave quickly

INTERPRETATION:
From the above graph 26% involve and take position, 48% attempt to
mediate, 18% observe and see what happens, 14% leave quickly.

80
15. Statement showing what an individual employee does
when his/her fellow employee is involved in a personal conflict.
Intervene to settle 10 20%
the dispute

Call a meeting 18 36%

Offer to help 13 26%
Ignore the problem 12 24%
Total 50 100%

19%
23%

25%
34%

intervene to settle the dispute call a meeting

offer to help ignore the problem

INTERPRETATION:
From the above graph 20% intervene to settle the dispute, 36% call a
meeting, 26% offer to help

81
 CHAPTER-5
FINDINGS

SUGGESTIONS.
CONCLUSION

BIBLIOGRAPHY

ANNEXURE

FINDINGS:

82
1. 30% is for employee conflicts, 44% is for management and employee
conflicts. This indicates that the types of conflicts that majorly takes place
in organization are: employee conflicts and management and employee
conflicts and the company can take measures to improve it.

2. 34.7% is negotiating, 30.6% is avoiding the conflict, 30.6% is by

imposing decisions.

3. 52% is by decrease in productivity, 28% say effect on the working

environment. This indicates that the main consequences that an
organization faces when a conflict arises within an organization are:
Decrease in productivity, effect on the working environment.

4. 44% is by managers conflicts, 24% is by employee conflicts, 14% is by

suppliers’ conflicts.

5. 34% agree, 20% highly agree, neither agree nor disagree. This indicates
that conflict is valued for the organization.

6. 50% agree, 20% disagree, neither agree nor disagree. This indicates that
conflict does provide an opportunity for change.

7. 54% is by middle level, 18% is by top level. This indicates that most of
the conflicts in the organization arises from: middle level, top level and
the company can take measures to improve it.

8. 58% agree, 26% disagree, 10% highly agree. This indicates that
organization welcomes feedback as majority agrees.

9. 86% say yes, 18% say no. This indicates that people do know what
procedures are available for conflict management.

10. 40% is by 20-40 people, 30% is by 40-60 people, 18% is by 80-100

people. This indicates that many people know how to use conflict
resolving procedure.

11. 88% say yes, 12% say no. This indicates that organization have the
resources to deal with conflicts as majority say yes.

83
 12. 60% agree, 14% highly agree, neither agree nor disagree. This indicates
that disputants have the right to participate in decision making and the
company is taking measures to enhance decision making.

13. 52% agree, 24% neither agree nor disagree. This indicates that conflict is
always bad and company can take measures to avoid them.

14. 48% attempt to mediate, 26% involve and take position, 18% observe
and see what happens.

15. 36% call a meeting, 26% offer to help, 24% ignore the problem. This
indicates that when an individual employees’ fellow employee involves
in a conflict the actions taken are: call a meeting, offer to help, ignore the
problem.

SUGGESTIONS:

Conflict management procedures are to be made as subject of core competency in the

organization. Conflict is a concept everyone wants to avoid from discussing. Conflict directs
84
the organization towards growth and development. The traditional approach to conflict is
changing day by day. Conflict is natural and it is to be managed effectively and
constructively.

Observing the practices of the present organization studied, the following guidelines can be
developed:

 Develop a comprehensive strategy on conflict management:

An inclusive strategy can be incorporated in the core strategies of the organization regarding
the conflict management policies and procedures. For this the company can document the
procedure for conflict resolution in employee handbook. This exhibits the fair and positive
approach of management towards the employees and to their work-related issues.

 Build trust by ensuring equity in dealing with employees:

By incorporating policies on conflict management in a fair and just manner, the management
can ensure the attitude of equity among all the levels of employees. This gains due trust and
confidence of the employees and develops inter-personal relationships which are basis for
effective conflict resolution.

 Empower employees creating awareness and importance of being

positive towards conflicts at workplace:
The key personnel such as Managers and Supervisors, who are required to take part actively
in conflict resolution techniques, should be empowered and should be created awareness on
the importance of reacting to a conflict positively.

 Institute company-wide conflict resolution and communication skills

trainings:
Management can take up conflict resolution programs all over the organizational levels. This
should be carried in a constructive way by setting up effective channels of communication
and inculcating the skill to manage conflicts 202 through a number of training programs.

 Maintain a policy of free communication and open-system from top-

down and bottom up between top level management and employees:
Effective communication plays a dominant role in creating a positive environment in the
organization. And, especially, with regarding conflict management its importance is more.
The management can devise a policy of free communication channels from top-down, and
bottom-up with the employees. Clear communication channels can be set up by the
management.

 Conduct Training programs and interactive courses to personnel

concerned dealing conflicts:
The management can conduct training programs for the male and female managers and
supervisors who deal with the conflicts at workplace. The education and training programs
should ensure creating a positive and constructive approach to conflict resolution by the
trainees. Professional trainers can be engaged to educate and train the employees. Education
and training to the employees at all levels without discrimination on any basis is
recommended. As it is also evident from the study that male and female both are effective

85
with their approach to conflicts, training can be imparted to them without any gender
discrimination.

 Continuous training:
Continuous training should be provided to the personnel because conflict is an inevitable and
unavoidable. Trainings should be updated based on the previous conflicts and their
repercussions ‘or severity. For this management can document the conflicts that have taken
place in the organization. This throws an insight on the long-lasting impacts of conflicts on
the organization culture. Trainings should be based on the case studies observed anywhere.
Employees are to be made to analyze the related cases on conflicts and extend possible
constructive solutions on win-win approach as conclusions. Management can encourage
people with innovative and constructive ideas towards conflict resolution methods. Training
programs should be Practice-oriented and should be interactive involving participant trainees.

 Case Sessions:
Cases Sessions can be conducted, on the conflict management practices which happened in
the organization or outside of the organization, without revealing the names, to clarify what is
best way to resolve the conflict that would not disturb the general system of the company.

 Stress free work:

Management is directed to create stress free work environment with adequate rest intervals
and required welfare facilities to the employees of the organization. By this, the physical
environment which also impacts the psychological balance of the employees is aligned.
Giving a scope of organizing games and occasions also influences the work environment of
the organization.

 Performance reviews/standards to involve conflict management

skills:
Resourceful Managers and Supervisors are to be assigned the task of conflict management
and are to be monitored by the conflict management committee to advise the issues relating
to conflicts at workplace. Such a committee can be a high-level one, comprising the board of
directors and chaired by the CEO of the company.

 Set up regular meetings with your employees:

Management is suggested to conduct regular meetings and ask for the employees ‘feedback
on how things are working. Ask them what support they need. By this conflict can be
diagnosed at the early stage through open and regular interactions among the personnel of the
organization.

 Encourage problem solving and authentic conversations on your

team:
Management can encourage problem solving by conducting brainstorming sessions with the
employees to come up with win-win solutions.

 Appoint a mediator:
If the employees can ‘t resolve a conflict on their own or with the help of a senior manager or
supervisor, the management can hire a mediator to be a neutral third party to help. The cost of
a mediator is nothing compared to the cost of unresolved conflict.

86
  Education and Persuasion:
Associations can promote conflict management by educating the members about the
importance of, and the need for, having conflict management, and persuading them to give
due regard to positive and constructive approach in their business. The members should
understand that if every businessman takes the conflicts in a positive connotation, every one
of them would be benefited and there would be an improvement in the general image of the
business community in the eyes of the public and there will be no necessity to the
government to involve with the conflicting issues of the business organizations and have a
prolonged and expensive and disputing legal proceedings. The means of education can be
many. They include: training programs, workshops, conferences and celebrations of
successful resolution of organizational conflicts which are done with equity and just
principles both by management and employees concern. They may include distribution of
literature (newsletters, books, magazines etc.) or sending e-messages, web messages and
stories of effective conflict management in various organizations.

 To Educational Institutions:
The growing concern for positive approach to conflict management has its base on the
emerging education outlooks. Business managers and supervisor’s way of approaching a
conflict positively is very much influenced by the educational institutions learning practices.
In view of this, educational institutions should do well by introducing conflict management
courses which are more practical rather than theoretical. Learning by analysis of situation
based on conflicts; one will acquire not only positive approach to conflicts at workplace but
also skills to apply for conflict resolution. Thus, conflict management need not be a separate
subject by itself; it should be integrated with every subject that the student learns.

 To Media Organizations:
The second most important factor for growing conflict management concerns is public
disclosure, publicity, media coverage and better communication followed by increased public
concern, public awareness, consciousness and scrutiny, better informed public and societal
pressures. Obviously, media organizations can take pride for the constructive role they have
played in publicizing the conflict related issues of the organizations, managers and
employees. They are expected to maintain the same 207 with novelty in reporting best
practices and highlighting good business organizations with positive and constructive
approach to the conflicts and their effective management.

CONCLUSION:

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Conflict may arise in any organization where two or more parties (individuals or groups) hold
differing viewpoints. While the presence of conflict is not a problem in and of itself, ignoring
the conflict is a problem. The imbalance triggered by conflict leads to eventual changes, if it
is managed adequately. A new sense of balance usually occurs following a crisis. Conflict
may be handled differently according to its causes and type. There is always more than one
way of dealing with it. Facilitating communication continues to be an essential interpersonal
skill for managers in dealing with conflict in the workplace.

Conflict is characterized by perceived differences and negative emotional states. The issues
in conflict can be thought of as tangible and intangible, as needs or beliefs. Conflict often
results in destructive ends but it does not have to. Collaboration and compromise are usually
available as alternatives in a conflict situation. Pursuing these ends in conflict is called
conflict resolution.

To manage conflict successfully, we propose that the negative emotions that accompany
conflict be managed by the strategic use of reflective listening. The differences in needs that
underlie the conflict can best be dealt with by interest-based negotiation. Solutions are found
when conflicting parties surface the interest behind their positions. The problem-solving
process is used to allow the free creation of ideas that will best meet the needs to the two
parties.

In the end to conclude this report I would like to specify that the project
allotted to me on “STRATEGIES ON CONFLICT MANAGEMENT” was of immense help
to me in order to understand the reasons and causes of conflict. Also understood the various
strategies on how to reduce conflict by implementing various strategies of conflict
management, thereby providing a practical experience.

In this project while identifying the factors and strategies of conflict

management among the workers of “SHRI RAM LIFE INSURANCE”. I got an opportunity
to interact with the workers and observe their behavior, attitude and perceptions and
awareness towards conflict management.

I would once again like to thank the people of “SHRI RAM LIFE
INSURANCE” who helped me in accomplishing this project and boosting my morale, by
encouraging, appreciating and recognizing my efforts.

BIBLIOGRAPHY:

88
REFERENCE BOOKS:

https://www.igi-global.com/book/strategic-approaches-conflict-resolution-organizations/
233939

https://books.google.co.in/books?id=ZBLiM-
CWaXoC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false

https://hr.utexas.edu/sites/hr.utexas.edu/files/ConflictManagementAnnotatedBibliography.pdf

WEBSITES:

www.google.com

www.wikipedia.com

www.managmentstudyguide.com

www.yourarticlelibrary.com

www.shodganga.inflibnet.ac.in

www.ebrary.net

www.conflictmanagmentpdf.com

www.hehealthnet.org.np

www.sg.inflibnet.ac.in

www.iosjournals.org

www.shriramlifeinsurance.com

ANNEXURE:

89
QUESTIONNAIRE:

“A DETAILED ANALYSIS AND STUDY ON STRATEGIES OF

CONFLICT MANAGEMENT”

PERSONAL INFORMATION:

NAME OF THE EMPLOYEE:

GENDER:

EDUCATION:

DESIGNATION:

DEPARTMENT:

CONTACT NO:

EMAIL-ID:

(PLEASE TICK THE APPROPRIATE OPTION)

Q1. What type of conflicts your organization often come across with?

a. Employee conflicts
b. Management and employee conflicts
c. Management conflicts
d. others

Q2. How does your organization deal with a conflict among employees?

a. By imposing decisions
b. By negotiating
c. Avoiding the conflict
d. others

Q3. What are the consequences that an organization faces whenever conflict arises
within the organization?

90
 a. Decrease in productivity
b. Affect on the working environment
c. Grouping among employees
d. Others

Q4. What are the major sources of conflicts in your organization?

a. Suppliers conflicts
b. Management conflicts
c. Employee conflicts
d. others

Q5. Is conflict valued for your organization?

a. Agree
b. Disagree
c. Highly agree
d. Highly disagree
e. Neither agree nor disagree

Q6. The conflict provides an opportunity for change?

a. Agree
b. Disagree
c. Highly agree
d. Highly disagree
e. Neither agree nor disagree

Q7. At what level the conflict occurs in your organization?

a. Top level
b. Middle level
c. Bottom level
d. All levels

Q8. The feedback about conflict always welcomed?

a. Agree
b. Disagree
c. Highly agree
d. Highly disagree

Q9. Do people know what procedures are available for conflict management?

a. Yes
b. No

Q10. How many people know how to use conflict resolving procedure?

91
 a. 20-40
b. 40-60
c. 60-80
d. 80-100

Q11. Does your organization have the resources to deal with conflicts?

a. Yes
b. No

Q12. Disputants have the right to participate in decision making?

a. Agree
b. Disagree
c. Highly agree
d. Highly disagree
e. Neither agree nor disagree

Q13. Conflict is always bad?

a. Agree
b. Disagree
c. Highly agree
d. Highly disagree
e. Neither agree nor disagree

Q14. When I observe people in conflicts in which anger, threat etc are present, I intend
to?

a. Involve and take position

b. Attempt to mediate
c. Observe and see what happens
d. Leave quickly

Q15. When the people I work with become involved in a personal conflict, I usually?

a. Intervene to settle the dispute

b. Call a meeting
c. Offer to help
d. Ignore the problem

92