Summer Training Report On

TRAINING NEED ASSESSMENT OF EMPLOYES AT HDFC LIFE INSURANCE "

Submitted to

Mrs. Ritika Khanna Project Supervisor

by

Yogita Negi Roll No. 0778 MBA- II Year

Submitted to

DEPARTMNENT OF MANAGEMENT STUDIES INSTITUTE OF FOREIGN TRADE AND MANAGEMENT LODHIPUR RAJPUT, DELHI ROAD, MORADABAD(U.P.)

ACKNOWLEDGEMENT

express

my

heartfelt

gratitude

toward

Mrs.

Ritika

Khanna

(Project Supervisor) for giving me the opportunity to do the Project Work and for providing me this learning experience in this esteemed organization.

I would like to thanks all the customers whom I met and they gave their valuable time to answer my queries. Heartiest thanks to Dr. Manjula Jain (Director, I.F.T.M College,

Moradabad) and other faculty members, librarian and all other staffs of my esteemed institute for their time to time assistance.

Lastly I would express my sincere thanks to all respondents for their cooperation. I am extremely obliged and highly thankful all those who have contributed to completion of this project. Yogita Negi MBA II Year

CONTENTS
Sr. Title Page No.

Acknowledgement 1 2 3 4 5 6 7 8 9 10 11 Introduction Literature Review Objective of the study Company Profile Research Methodology Findings & Analysis Conclusion Suggestions Limitations Bibliography Questionnaire

INTRODUCTION

INTRODUCTION

Definition of Training: The systematic development of the knowledge, skills and attitudes required by an individual to perform adequately a given task or job. Training refers to efforts that help enhance employee skills for carrying out the present job. According to Edwin B Flippo, training is the act of increasing knowledge and skills of an employee for doing a particular job.

Needs for training: To improve the current job performance of employees To familiarize employees with the policies and procedures of the organization. To enhance the creativity, adaptability and versatility of the employees and to facilitate learning at the work place To prepare employees for future job. To change the skills, knowledge and attitudes of the employees on a permanent basis. To help employees manage their careers. To maintain knowledgeable work force. To gain competitive advantage through a knowledgeable work force. To promote organizational growth through individual growth.

Areas of training: Company policies and procedures Human relations training Skill based training Problem solving training

Onsite Workshops for Leadership Team Employees need more than bosses... They need mentors: Professionals skilled at assessing employee development needs and committed to guiding employees toward professional success.

Team Leadership Workshop provides managers with proven techniques for effective personnel management. By helping leaders understand and address their employees' requirements, this interactive seminar offers significant benefit to managers at all levels. New supervisors gain a solid grounding in the concept of ''leadership,'' while more experienced managers refresh their commitment to teaching and coaching their team members.

This training program provides healthy perspectives for managers at all levels, making it an ideal morale-boosting leadership development experience for mixed groups of front-line supervisors and senior staff members.

Leadership Training for Success All managers need methods. Leaders need to know the most effective techniques for guiding teams, mentoring individuals, and validating the results. Without solid methods, managers will revert use a one-size-fits-all approach to leadership that reflects the leader's personality, rather than the employees' needs.

Committed, mentoring leadership is essential to employee morale, productivity, and retention. A Results-Oriented Training Program Team Leadership Workshop provides proven methods and procedures for successful people management. Participants receive a step-by-step plan for guiding each employee toward success.

This workshop includes elements of Frank Whyte's nationally respected Team Building Workshops expanding upon that foundation to help leaders:

Recognize each employee's personality preferences and supervisory needs, Align their leadership style with those of their bosses, colleagues, and subordinates, Develop competent and committed employees by mentoring and guiding their employees toward success,

Schedule their management responsibilities to ensure that nothing is left to chance, and

Use practiced, real-world scenarios to resolve challenges and remove barriers.

ON THE JOB TRAINING

INTRODUCTION

My OJT is to finding the employee potentiality in their concern department. And I have to find how training will helpful for organization as well as individual growth. I have to identify the employees who needs training program and I have to find how can company make the employees to show interest for attending the training program. I have to submit the results what can company get after giving the training to the employees.

TARGETS/ TASKS

I have to approach the employee who is working for HDFC LIFE INSURANCE insurance Company and should find out are they feeling training will be helpful or not to increase of the performance of the employee. After that I have to find out what are the things should we cover in the training program depending upon the concern department.

ACHIEVEMENTS

I promoted HDFC LIFE INSURANCE products during my SIP period. I have showing them as monthly wise as follows,

In The Month of MAY 1st week Training class on IRDA norms and why Insurance is needed 2nd week Training class, for different products of HDFC LIFE INSURANCE 3rd week 4th week 4 leads

In The Month of JUNE 1st week 2nd week 3rd week 4th week 3 leads 4 leads 4 leads 4 leads

In The Month of JULY 1st week 2nd week 3rd week 4th week 4 leads 6 leads 3 lead 4 leads

In The Month of August 1st week Training program was conducted to telecallers who are dull in Communication skills 2nd week 3rd week 4th week Training program done to 4 advisors 3 leads 6 leads

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Training Program done by HDFC LIFE INSURANCE Training is must for every individual when he enters into the organization. Even though the candidate has experience he also should get training. Why because the organization culture, values and beliefs are different from one organization to other. Thats why the training program plays a key role in every organization.

Training program following by HDFC LIFE INSURANCE Insurance is different at various levels.

Mainly in training program the company concentrates on sales managers, agents, operations executives and telecallers.

Training program for sales managers: The training program duration is 15 20 days They get training on product knowledge. Motivating and encouraging Advisors

Training program for Advisors: The training program duration is 15 20 days They get training on product knowledge How to convince the people. Objection Handling

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Training program for operations executives: They will get training on customer database files Taking care of the customer files Well trained in product information and documentation Renewals will be informed periodically.

Required skills for employees in HDFC Life Insurance: Interpersonal skills Excellent communication skills Understanding nature Aggressiveness Convincing skills Ability to motivate others Interest to learn

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The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

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

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

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The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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Indian Insurance Industry: Learn About Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.

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Functions of Insurance The functions of Insurance can be bifurcated into two parts: Primary Functions Secondary Functions Other Functions

The primary functions of insurance include the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also

Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

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The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following: Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. 17

Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.

The end of the year 2000 marks a significant change and growth of 'India Insurance' industry scenario. Monopoly of Public Sector Insurance company marks an end and Private companies makes inroad. Foreign companies, both Life and General flocked, collaborated and helped astronomical growth of 'Insurance Industry in India'.

'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian Insurance Industry' 10 licenses for selling life insurance products and 6 licenses for selling non-life products were issued to private companies. The Public sector giant LIC started losing its market share at the cost of stupendous growth of private players. Now 'India Insurance' industry has more than a dozen private life insurance players and 9 private general insurance companies. Aggressive and penetrative marketing strategy coupled with wide product bandwidth was an instant success among the ignorant masses. Most of the private companies registered more than 100% growth till then and are still continuing with such monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic need but it is getting popular among semi urban to rural masses. Top rank private companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are aggressively researching and innovating products for huge untapped rural 'India Insurance' market. Collaboration with micro finance companies, post offices, rural banks and village management authorities for selling insurance is doing wonders.

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Life insurance products covers risk for the insurer against eventualities like death or disability. Non-life insurance products covers risks against natural calamities, burglary, etc. They are not as popular as life products in the ' Insurance India's' portfolio. Until very recently it had only corporate buyers, but with natural disasters like, earth quakes, tsunamis, storms and floods becoming more frequent and damaging there has been a sudden spurt in sales of general insurance amongst individuals. Consumerism of life style goods and modern amenities has also contributed to its growth. With more awareness and wide bandwidth of insurance product portfolio the growth for 'India Insurance' story will only get more competitive and more affordable to all sections of Indian society.

Present Scenario The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and nonlife segments have started selling their insurance policies since 2001.

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Non-Life Insurance Market

In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset20

liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects.

Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations.

Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business.

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Re-insurance business Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed.

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The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fastforwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers. 23

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.

Insurance companies: IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:

When the candidates are recruited from outside or selected, promoted from inside, it is expected that they must perform their jobs with maximum efficiency and competence. Therefore after selecting the candidates, the next logical step is to train them for better performance. Era of vocational training started during industrial revolution, which took place in Britain in 18 th century. The apprentices working n different factories use to get vocational training in the form of direct instructions in the operation of machines. Thereafter specially when use of computers, automatic machines increased and because of rapidly changing techniques the need of training is recognized as one of the most important organizational activities. Training is required to be given to employees to keep them updated effective and efficient. At present, it is observed that all organizations, of whatever types they may be, need to have well trained experienced and skilled people to perform various activities. If 24

current job occupants meet this requirement, in that case, training is not important but if it is not the case, it is very essential to raise the skill levels, increase the versatility and adaptability of the job occupants by giving them necessary and appropriate training. THE TRAINING PROCESS: ASSESSMENT PHASE of employee

PLANING TRAINING

CONDUCT OF TRAINING EVALUATION training programme - objective are achieved ? Needs Assessment: Needs assessment diagnoses present and future challenges to be met through training and development Needs assessment occurs at two levels- Group and individual.

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An Individual obviously needs training when her or his performance falls short of standars i.e. when there is performance deficiency Assessment of training needs occurs at the group level too.Any change in the organizations strategy necessitates training of group of employees. Training Objectives: To raise the productivity : Increased human performance often directly leads to increased operational productivity and increased company profit. To improve quality in work : Improvement in quality may be in relation to companys product / service. To improve health and safety : Proper training can help prevent industrial accidents. Outdated prevention : Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolenscence, which may be due to age, temperament or mptivation or the inability of a person to adapt himself to technological changes. To improve organization climate: An endless chain of positive reactions results from a wellplanned training programme. Production and product quality may improve , financial incentives may then be increased, less supervisory pressure may result. Personal growth: Management development programmes seem to give participants a wider awareness , an enlarged skill, and enlightened altruistic philosophy, and make enhanced personal growth. SELECTION OF TRAINEES Trainees should be selected on the basis of self-nomination, recommendations of supervisorsor by the HR department itself. SELECTION OF TRAINERS 26

Training and development programmes may be conducted by several people, including following 1. Immediate supervisors, 2. Co-worker, 3. Members of the personnel staff, 4. Soecialists in other parts of the company, 5. Outside consultants, 6. Industry associations, 7. Faculty members at universities. Large organizations generally maintain their own training departments whose staff conducts the programmes. TRAINING METHODS

On-the-job training : Almost every employee, from the clerk to company president gets some on-the-job training,when he joins a firm. Under this method, an employee is placed in a new job and is told how it may be performed.It is primarily concerned with developing is an employee skills and habits consistent with the existing practices of an organization, and with orienting him to his immediate problems. Vestibule training (training-centre training): Vestibule training method attempts to duplicate on-the-job situation in a company classroom. It is a classroom training which is often imparted with the help of equipment and machines which are identical with those in use in the place of work.This methods enables the trainee to concentrate on learning the new skill rather than on performing an actual job.Theoretical training is given in the classroom while the practical work is conducted on the production line.It is a very efficient technique of 27

training semi skilled personnel e.g.clerk, machine operation , testers,typists etc. Training is in the form of lectures, conferences, case studies, role-playing and discussion. Demonstrations and examples : In the demonstration techniques,the trainer describes and displays. When he teaches an employee how to do something by actually performing activities himself and by going through a step-by-explaination of why and what he is doing. Demonstrations are effective techniques in teaching as it is easier to show a person how to do a job then to tell him or ask him to gather instruction from the reading material. Demonstrations are often used in combination with lectures,pictures,text

materials,discussions etc. Simulation : Simulation is atechnique which duplicates the actual condition encountered on a job. Trainees interest and employees motivation are high in simulation exercises because he actions of a trainee closely duplicate the real job conditions. This method is essential in cases in which actual on-the-job practice might result in a serious injury,a costly errors. This technique is a very expensive one. Apprenticeship : Apprenticeship training is the oldest and most commonly used methods.It is a training in crafts,trades and in technical areas.A major part of training time is spent onthejob production work Classroom training: a) Lectures: Simplest way of imparting knowledge to trainees is by lecture. Concepts or principles,attitude,method can be useful when large group are to be taught.The lecture metho can be useful when large groups are to be trained within a short time, thus reducing the cost per trainee. b) The Conference Method : In this technique, the participating individuals confer to discuss points of common interest to each other. Conference is a formal meeting, conducted 28

according to organized plan. c) Seminar or team discussion : There are different methods of conducting seminar. It may be based on paper prepared by one or more trainees on the subject in consulting with the person in charge of the seminar. d) Case studies : The person in charge of training make out a case,provides necessary explainations, initiates the discussion going. When the trainees are given cases to analyse. They are asked to identify the problem and recommend tentative solutions. e) Role Playing : in role playing , trainees act out a given role as they would in a stage play.It basically involves employee-employer relationships hirind, firing,interviews disciplining etc. f)Programmed instruction method : A programmed instruction involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package. g) T-group training : programmes This comprises of Audio-visual aids and planned reading

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SCOPE & IMPORTANCE

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SCOPE OF THE STUDY

The study focussed on:

Formal training courses e.g. computer courses, general overview courses, flagship courses, marketing courses, and Public Service Commission courses. Particular attention was paid to flagship courses which include: the Survey Skills Development Course (SSDC) (households and businesses); the Survey Support Certificate Course (SSCC) Level 1; SSCC Level 2; and the Data Interpretation Workshop. Employees hired under the Public Service Employment Act (public servants) The study did not focus on language training, computer-based training, and survey-specific training.

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OBJECTIVE OF THE STUDY

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OBJECTIVES OF THE STUDY

The main objective of doing this project is to study employee attitude regarding the training program and the benefits of the training program. During this student internship program period I have to achieve some thing which is helpful to the development of myself and some value addition to the company. Getting more business to the company because of training program is the main objective. It gives me good exposure of myself and creating good impression of corporate mind.

The main objective of this study is to know the employee opinion regarding the training program. To find out what is the training needs in concern area. To find out the benefits of the training program to the employee and to the organization. To find out what is the result for the organization because of giving the training to the employee.

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LITERATURE REVIEW

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LITERATURE REVIEW

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COMPANY PROFILE

COMPANY PROFILE OF HDFC LIFE INSURANCE

HDFC Standard life insurance ltd is a joint venture company of HDFC bank and Standard Life.HDFC STANDARD Life Insurance is a 74:26 joint venture between HDFC Bank Ltd. 37

and Standard Life. HDFC STANDARD Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2000. HDFC HDFC is one of the India s leading institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking to stock broking, to mutual funds, to life insurance, to investment banking, the group to the financial needs of individuals and corporate. The group has a personal worth of Rs.100000 crore and employees in its various businesses with presence in 216 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base over 1400000. HDFC enjoys leadership position in most of the businesses including stock broking, investment banking and retail lending. With a brand slogan of CUSTOMER SATISFACTION , HDFC enjoys a particularly strong franchise in the arena of investment and capital markets. HDFC is also known for the values of trust, integrity and financial prudence with which entire business and franchise is developed .Not only they are the one of the most preferred company to do business with, they are also one of the most preferred employers in the financial services industry.

STANDARD LIFE Standard Life has used its broad and well-established U.K. base to create a multinational business and is building businesses in the US and Europe that focus on sectors of the market with good fundamentals and where its skills can add value. As at 31 December 2005, 72% 38

of funds under management are in the United States; 24% in South Africa and 4% in United Kingdom .On the embedded value bases the geographic split is 66% Africa, 25% the US and 9% rest of world.

HISTORY

HDFC Standard Life Insurance Company Limited

The Partnership :

HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement.

Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture.

In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India.

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Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai.

Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank.

In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000.

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited.

Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life was the first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations.

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HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance companies in India are measured.

COMPANY JOURNEY

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FIG.-1: SHOWS THE COMPANY JOURNEY FROM 1985-2007

VISION STATEMENT

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 The Global Indian Financial services brand: Their customers will enjoy the benefits of dealing with a global Indian brand that understands their needs and delivers customized pragmatic solutions across multiple platforms. They will be a world class Indian financial service group. Their technology and best practices will be benchmarked along international lines while their understanding of customers will be uniquely Indian. They will be more than a repository of their customers savings. They, the group, will be a single window to every financial service in a customers universe. The most preferred employer in financial services: A culture of empowerment and a spirit of enterprise attract bright minds with an entrepreneurial streak to join us and stay with us. Working with a home grown professionally managed company, which has partnerships with international leaders, gives their people a perspective that is universal as well as unique. The most trusted financial services company: They will create an ethos of trust across all their constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. Value creation: Value creation rather than size alone will be business driver.

LIFE INSURANCE AND HDFC LIFE

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The Insurance market was opened up for private companies in year 2000 and currently there are 15 Life Insurance companies in India. HDFC Life Insurance in its fifth year of operations has shown commendable results. In FY 2005-06, HDFC Life Insurance laid special emphasis on strengthening the Quality of Business and succeeded remarkably in the achieving its goals. Instead of just top line growth it has concentrated on better quality business through focusing on long term regular premium business and 90% + persistency. For the second year in succession, it has met the internal value creation target which gives the confidence that going forward it will be able to maintain both aggressive top line growth and reduce losses to achieve break even by 2008-09. The main focus would be to deliver superior value to the key stakeholders and the employees. They have 650 branch offices in 31 cities in India and they are growing aggressively to increase their footprints and bring Life Insurance products to their citizens. From a macro perspective, investment in Life Insurance in developed countries is as much as 4.85% of GDP whereas in India it only accounts for 275%. Hence for the next few years due to under insurance and inherent scope present, private life insurance companies will grow as close to 100% year on year for the next few years until the gap is bridged. One of The key reason for the under insurance has been a monopolistic industry prior to 2000 which led to under development of the market. Life Insurance is an integral part of any Financial Planning activity. Typically one could look at least 5-10% of the total Income to be invested towards Life Insurance.

MISSION AND VALUES

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Their Mission ( as stated in the Company's website ):

To be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like

Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share

Their Values:

SECURITY: Providing long term financial security to our policy holders will be our constant endeavour. We will be do this by offering life insurance and pension products.

TRUST: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognising the different needs of our customers, we will be offering a range of innovative products to meet these needs.

BRAND PERSONALITY 45

 HDFC Brand identity based on consumer perception and group aspiration. Knowledgeable of the latest business practices; has incorporated the best but believes that ultimately successful business decisions are based on instincts rather than logical processes. Values Indian traditional and rituals. HDFC is the quintessential Indian entrepreneur in touch with the global world. Constantly looking for new opportunities to grow business and make money. Believes in no guts, no glory. HDFC is seen as a leader in their field, not only in thoughts but also in their ability to spot opportunities and build on them.

MAKING OF A BRAND Started operation in October 2000. Need for private players to establish brands. Need to create a brand platform that would be unique, relevant and emotionally compelling. Based their brand positioning on providing financial freedom- Sar utha kar jeo. Expressed through all customer touch points Ads/Merchandising/Corporate Stationery etc.

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KEY IMPERATIVES OF COMPANY To be a top five player in this industry in this, HDFC Life Insurance need to increase Distribution width and depth trough the country. Insurance is sold primarily through three sales channels: Tied agency network: sales manager recruit and develop life advisers who in turn prospects for customers and sell insurance. It is a tide agency, as these agents (life advisers) are their exclusive sales agents .key to success of a tide agency is that each sales manager has a large number (successful SMs) have a team of 8 to 10 contributing Las) OF LIFE ADVISERS who deliver 3-4 policies month on month consistently.

Alternate channel: sales mangers works with channel partners who can use their channels sales force to sell insurance of their brand. Channel partners in alternate channel can be either a corporate agency or a broker. A corporate agency will always be exclusive for their brand and sell for their company. A broker will be a multiband player and works for the benefit of the customer. Alternate channels sales manager, apart from managing existing partners, identify new partners, built relationships and use the channel sales force to increase sales from that channel.

Group sales: sales mangers sell to corporate /institutions where a group of homogeneous character can be covered under a single insurance policy. Typically they work in the area of employee benefit programme .They sell products like Superannuation, Gratuity, Group Life Covers , EDLI and group credit term covers

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.Key difference from the first two channels is that this channel does not insure individual lives but insures groups of people.

STRENGTHS

Our key strengths

Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure

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RESEARCH METHODOLOY

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RESEARCH METHODOLOGY
The Research and Methodology adopted for the present study has been systematic and was done in accordance to the objectives set which has been detailed as below. Research Definition Research is a process in which the researcher wishers to find out the end result for a given problem and thus the solution helps in future course of action. According to Redman & Mory research is defined as a Systemized effort to gain new knowledge. Research Design: According to Claire Seltiz, a research design is the arrangement of condition and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure.

Nature of Research: Research is basically of two types. 1. Descriptive research 2. Explorative research 1. Descriptive Research: These studies are concerned with describing the characteristic of a particular individual or a group. Determining sources of Data: There are two main sources of data 1. Primary data 2. Secondary data 50

Primary Data: It consists of original information collected for specific research. Primary data for this research study was collected through a direct survey to obtain this primary data a well structured questionnaire was prepared by the researcher.

Secondary Data: It consists of information that already exists somewhere and has been collected for some specific purpose in the study. The secondary data for this study is collected from various Japanese Management books .

Questionnaire: A set of questions containing a few Technical questions and more number of Opinionated questions are prepared for the employees of both Centralized and Decentralized sections of HR Department.

Sample Size: Total sample size is 90 Questionnaire Development: Questionnaire is the most common instrument in collecting primary data. In order to gather primary data from viewers. The present questionnaire consists of following type of questions. Open ended questions Closed ended questions Dichotomous questions Multiple choice questions Ranking question.

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Open ended questions: It has no fixed alternatives to which the answer must conform. Thus, respondent answer in his/her own words at any length they choose.

Closed ended questions: Closed ended questions have no other options other than the selecting the one that close matches the respondents opinion or attitude.

Dichotomous questions: A dichotomous questions refers to one, which offers the respondents a choice between only two alternatives.

Multiple Questions: A multiple choice question refers to one, which provides several sets of alternatives for the respondents choice.

Ranking questions: These questions are given when there are many points to be considered and to be ranked in priority.

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FINDINGS & ANALYSIS

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FINDING & ANALYSIS

Analysis of office staff who are having sufficient Knowledge on life Insurance .

No.of Persons PROFESSION 8 New Advisors Advisors Telecallers Marketing Executives 54 12 26

Diagram of the table:

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60 50 40

54

New Advisors

30
20 10 0 8 12

26

Advisors Telecallers Marketing Executives

Having Sufficient Product Knowledge on Insurance

Analysis of the table:

The above chart showing that advisors only have more knowledge than telecallers, marketing executives and new advisors. Advisors will complete the deals. But after that every thing will take care by operations executives and telecallers. With out sufficient knowledge these both people cant work well. When the telecaller is calling to customer for renewal premium that person should have a knowledge how the premium should calculate, and they should know any extra charges for late payment, and how much grace period will be these things should know even telecallers and operations executives too.

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FINDINGS

Trained employees can work more efficiently. Training makes employees more loyal to an organization. Training makes an employee more useful to a firm. Training enables employees to secure promotions easily. They can realize their career goals comfortably.

Employees can avoid mistakes on the job. They can handle jobs with confidence. They will be more satisfied on their jobs.

Training can contribute to higher production and fewer mistakes, greater job satisfaction and lower employee turnover. Also, it can enable employees to cope up with organizational, social and technological change.

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CONCLUSION

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CONCLUSION

In this Knowledge-based economy, training helps people to learn how to do the things differently or to the different things. Products are now increasingly knowledgeintensive; for this employers are responsible for providing opportunities for continued learning. To cope with the challenges and competitiveness in the world, every organization needs the services of trained persons for performing the activities in the systemic way. So, training program plays a key role in individual as well as organizational performance.

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SUGGESTIONS

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SUGGESTIONS

Create awareness: The Company has to take care of awareness creation about the products and services among the Advisors/Agents Charges: The Company has to reduce the mortality and administration charges. The company has to give periodic training. Product promotion strategies should be improved. Company should consider the present competition and should act according to the customer needs. It Should be like long term training like Fundamental Carrier class , Basic Carrier class which helps the advisors in different stages.

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LIMITATIONS

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LIMITATIONS

1. The survey was conducted with in the company. 2. And in survey I have to interact with the employees. But the employees will be busy their works. 3. Getting the good response from the employee will be difficult because of their busy schedule. 4. Time to interact with employees inside the branch is not sufficient. 5. Time Period of my OJT is one of the limitations.

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BIBLIOGRAPHY

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BIBLIOGRAPHY 1) Lynton, R.P. and Pareek, U. Training for development, 2nd Ed., New Delhi: Vistaar publication, 2002. 2) Bhatnagar, O.P. Evaluation methodology for training, New Delhi: Oxford and IBH publishing co.pvt.ltd. 3) Rae, L. The art of training and development, effective planning. Vol. 1, New Delhi. 4) Tannenbaum, S. A strategic view of organizational training and learning. 5) A hand book of human resource management practice, 8th ed., 2001. 6) Personnel management, Mc. Graw Hill, 6th ed., 1981. 7) www.maxnewyorklife.com

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QUESTIONNAIRE

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APPENDIX 1. Name: 2. Designation: 3. What is your opinion on training? Good Very good Bad Time waste process

4. Do you feel that training will helpful for individual growth? Yes NO

5. Did you satisfy with training what company conducted here? Yes No

6. Is there any improvement in performance after getting the training? Yes No

7. Who needs much knowledge regarding company and product? Agents Tele callers Operations executives All

8. In which areas employee needs training? Company policies and procedures Skill based training Problem solving skills All of the above

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