PREFACE

Human resource management does not confine itself to the selection of right type
of person at right job, but it also helps to build a team spirit where employees
satisfy their aspirations by developing themselves and contribute to the
accomplishment of organizational goals. The different dimensions of human
resource management are as follows:-Manpower planning, Job analysis,
Recruitment, Selection, Training and development, Job evaluation, Performance
appraisal, Motivation, Morale, Communication and Leadership.

Leadership is an art of influencing others for better performance. It has been
defined as the act of arousing, engaging and satisfying the motives of followers
in an environment of conflict, competition, or change that results in the
followers taking a course of action toward a mutually shared vision. Leadership is
the art of accomplishing more than the science of management says is possible.

In todays fast-changing world, leadership issues are getting importance in all
organizations - both at policy and implementation level. A sense of urgency is
being experienced to improve the performance of our public organizations to
meet the interests and expectations of the nation and the citizens. At the same
time there is realization that it is effective leadership that can help government
organizations make the critical transition from intention to implementation,
potential to performance, and policy to practice.

The insurance sector in India has come to a position of very high potential and
competitiveness in the market. Indians have always seen life insurance as a tax
saving device, but now suddenly turning to the private sector that are providing
them new products and variety for their choice. There is a revolutionary change
in the technology that has revolutionized the entire insurance sector. Insurance
industry is a data-rich industry, and thus, there is a need to use the data for trend
analysis and personalization.

Although the insurance industry has been growing between fifteen and twenty
percent, yet it lags far behind its global counterparts. The main reasons are as
follows: - lack of products as per market requirements, low awareness among the
general public, term- insurance plans are not properly promoted, low returns
from insurance products and above all inefficient management and leadership.

There is huge competition in the Indian life insurance sector between the public
and the private players. All big companies have jumped in life insurance like
Bajaj Allianz, ING Vysya, AMP Sanmar, ICICI Prudential, Birla Sun life, TATA
AIG, Kotak Mahindra, Max New York, Met life India and many more. There is
also a high-class competition between these private players. The two challenges
that are faced by the life insurance companies are of maintenance and growth.
They need to improve leadership and they need to check their leadership
dynamics.

Since the profile of insurance sector has changed from traditional plans to market
linked plans, there are various challenges related to changing leadership scenario.
Since, in order and to handle uncertainties of share market, to maintain
respective position, to grow and satisfy investors and to match their expectations
refinement and reshuffling of leadership dynamics is quite important, hence the
researcher had chosen the topic Changing Scenario of Leadership in
Insurance Sector: A Critical Appraisal of Life Insurance Corporation
of India and Bajaj Allianz

The entire study has been divided into six chapters. The very first chapter starts
with the background of Indian insurance industry including the relevance of
leadership in Indian insurance industry. This further includes evolution of
human resource management, the background of leadership and insurance
sector, the establishment of the organizations, concepts related to leadership,

various leadership styles and various leadership theories backed by need of the
study.

The researcher has collected both primary as well as secondary data, through
self-structured questionnaire and related published materials i.e. journals,
periodicals, research thesis, newspapers, policies framed by the organizations,
etc.
In the light of basic objectives, some hypotheses were also framed by the
researcher pertaining to existing leadership practices in the organizations,
relationship between leadership styles and performance of the organizations and
between the effectiveness of leadership styles on the overall development of
employees.
The researcher has applied weighted average, z-test and chi-square test to justify
the analysis and concluded that for the first null hypothesis that there is no
difference in the leadership styles prevailing in the organizations. Similarly, H02
Leadership styles followed in the organizations and performance of
organizations are independent to each other has also been tested and the
researcher found that leadership styles which are followed in the organization
significantly affect the performance of the organizations in a positive manner.

The researcher has studied some related literature on the chosen parameters
which incorporates some important prevailing leadership styles like autocratic
style, democratic style and free-rein style of leadership. Some authors have also
studied about the effectiveness of leadership styles on employees attitude. One
study which has been done on leadership styles of managers was compared in
three divisions of a large automobile insurance company, and its relationship to
each divisions efficiency and effectiveness and the outcome was all three
divisions were operating at an equally high rate of efficiency. Measures of
effectiveness did not show any difference between divisions.


As far as the studies at international level are concerned the researcher found
that many studies have been done on various leadership styles and their influence
on employees motivation and also on their efficiency and effectiveness. After
reviewing the entire study at both the levels the researcher concludes that
although some of the studies related to leadership styles and leadership theories
have been covered in the studies no comprehensive study in the field of insurance
has been done so far hence, the researcher has tried her level best to cover all the
aspects of leadership styles and theories prevailing in the insurance sector.

Analysis of secondary data has been done with the help of available data of the
organizations, news articles, different publications by the organizations, annual
reports and the website of the organizations. On the other hand, the researcher
has taken into consideration various parameters for comparing these
organizations like its performance, market share, national network, business
performance and number of policies sold etc.

The researcher has also compared both the organizations on the above stated
parameters. Bajaj Allianz is found to have some leadership values like working
together to deliver a consistent business strategy, high performance culture and
employees development. Leaders encourage employees to innovate, identify
business opportunities, share knowledge and ideas, and provide constructive
feedback. Allianz Leadership Values have been developed to link business targets
and desired leadership behaviors, to support and foster cultural improvements
and organizational change.
Analysis of primary data has been done with the help of a self structured
questionnaire. The main analysis starts with the questions based on rating
related to different styles of leadership. The researcher has analyzed that in case
of both the organizations the most promising style of leadership is autocratic

style. In case of Bajaj Allianz autocratic style is followed by laissez-faire style and
in case of LIC it is followed by democratic style. the difference in all the styles is
not very significant which reveals that in both organizations the leaders behave in
similar fashion depending upon situations. The First null hypothesis i.e. H01 :
There is no difference between prevailing leadership styles in the organizations.
is also based on
``these questions. The researcher accepts the hypothesis and concludes
that overall there is no difference in the leadership styles. For depth study the
researcher has further framed three sub-hypotheses and only one sub-hypothesis
i.e. H01.1 There is no difference between the Autocratic style of leadership
has been rejected and the remaining two sub-hypotheses were accepted by the
researcher.

Then, the researcher has analyzed the theories prevailing in the organizations
and for this, the researcher has asked various questions related to the theories to
the employees of the organizations and came to know that various theories like:
great man theory, trait theory, path goal theory, situational approach and many
more were prevailing in the organizations. In case of Bajaj Allianz the most
prevailing theory is situational theory whereas in case of LIC it is great man
theory.

Next hypothesis i.e. H02 Leadership styles followed in the organizations and
performance of organizations are independent to each other has also been
tested in this chapter only. For testing this hypothesis the researcher has framed
questions based on likerts five-point scale. Researcher strongly rejects this
hypothesis for both the organizations and for having in depth study the
researcher has sub-divided the hypothesis in three sub-hypotheses and finally
came to the conclusion that leadership styles which are followed in the
organization significantly affect the performance of the organizations in a positive
manner.

The last hypothesis i.e. H03 Leadership styles have no relationship with the
development of employees has also been tested by the researcher by using the
suitable test of independence. For testing this hypothesis the researcher has
framed a question based on the likerts five point scale and after testing the
hypothesis researcher rejects the hypothesis in case of both the organizations.

The major strengths of LIC were employees commitment towards work,
consistency, their knowledge, and nature of the employees, its infrastructure and
wide network, organizational reputation in the market. In case of Bajaj Allianz
the major strengths are confidence, planning, learning attitude, adequate
business environment, national network, infrastructure, quality products in the
market and many more.

The weaknesses of LIC could be listed as lack of confidence among the
employees, lack of enthusiasm, lack of transparency with the subordinates etc. In
case of Bajaj Allianz lack of initiative, lack of attitude, lack of experience,
undifferentiated products and services and poor quality of goods and services.

The major opportunities related to leadership in LIC were liberal policies of
government, professionalism, information technology advancement. In case of
Bajaj Allianz the major opportunities are continuous development in the
organization, liberalization in the policies, and professionalism in the market.

The major threats for leadership in LIC were the problems of recession, excessive
competition, political challenge, economic factors and the deregulations in the
market related to the policies of LIC which are governed by IRDA. In case of Bajaj
Allianz major threats are recession, excessive competition in the market, political
challenge, deregulation in the market etc.


The final chapter consists of conclusions and recommendations of the study. In
this chapter, the researcher has summarized all derived conclusions based on
primary as well as secondary data. At the same time, it has been advised for both
the organizations to adopt certain precautionary and remedial actions in the form
of proactive and active control related to leadership problems in the organization.
These include productivity, explosive growth and continuous check on the
products of the organization, effective functioning and the image of the
organization.
Thus, the thesis traces a blend of human resource management and leadership
practices, compares leadership practices of the selected organizations and
identifies the strengths, weaknesses, opportunities and threats of related area. It
also magnifies a unique finding confined to relationship between leadership
styles and performance of the organizations and finally suggests some ways
through recommended action plan for both the organizations for further
betterment.

..