Académique Documents
Professionnel Documents
Culture Documents
The initiative of this project is to do a research about the operation and the organizational
behaviour of a larger organization in Sri Lanka under different topics. Through this research it
is expected to develop the skills such as Identifying essential key concepts in Industrial
Management, Application of theory in a practical organizational environment and Presenting
theoretical knowledge in an effective manner. Here, as the organization I have selected AVIVA
NDB insurance Private Limited which is a very popular insurance company in the global
insurance industry.We gather the information about the organization under several categories
and do a literary study about how the organization uses the industrial management concepts
for the operation of the organization with the purpose of achieving the goals. Here, we find the
information about the type of the products and services provided by the organization and its
history, the cooperate culture of the organization including visions, core values, practices,
human resources, and physical environment, and also the effect of external forces on the
organization such as political, economical, demographical, natural, technical, socio-cultural
and internal factors such as customers, employees, competitors etc. We also study about the
processes that are in operation for the achievement of organizational targets and their plans
for getting the maximum contribution of the employees for the success of the company. In an
any kind of organization, there is a special procedure for making business decisions.
Employees in each level of the company has their responsibilities in decision making process,
and we try to get a clear view of this special criteria of AVIVA NDB. Finally we find how the
organization has contributed for the welfare of the society by organizing cooperate social
responsibilities.
Acknowledgement
My special thanks goes to Mr. Sarath Wikramanayake who worked as an independent NonExecutive Director of AVIVA NDB Insurance company, for helping me to get information for
my Industrial management and marketing individual assignment.
I would like to express my gratitude towards our dear lecturer, Miss. Thesara
Jayawardhana,who delivered the lectures clearly in order to make to make sure we understand
the marketing and management concepts and apply them practically.Without her supervision
and guidance this assignment would be impossible to achieve.
Contents
Abstract .................................................................................................................................. 1
Acknowledgement ................................................................................................................. 2
1. Background of the AVIVA- NDB Insurance Company .................................................... 4
Vision ......................................................................................................................... 6
Mission ...................................................................................................................... 6
3. The impact of the internal and external market elements upon AVIVA- NDB .............. 8
4. Planning and goal setting and pertaining to the organizational function to which the
selected managerial level employee belongs ................................................................... 11
Performance Governance ............................................................... 12
Training and development. ............................................................. 12
AVIVA NDB hands over Aviva School Village to the children ............................ 18
Conclusion ........................................................................................................................... 19
References ........................................................................................................................... 20
During the past years, Aviva had brought together several different brands around the world
under the Aviva name. Moving towards a single global brand is a major part of the companys
"One Aviva" vision to provide the best products and services to customers around the world.
The decision which was taken to combine Aviva and the NDB names to transform Eagle
Insurance into Aviva NDB Insurance PLC involves the use of the name of the companys
second largest shareholder in the title of the business.
business
solutions
include,
employees
life
insurance,
workmen's
compensation insurance , surgical and hospitalization insurance for employees and eMarine
insurance services for importers and exporters such as marine cargo insurance. Providing
industrial risk management advice and services such as loss investigations,property risk
assessments,hazard analysis, risk management communications, occupational health and
safety management, and safety training programs is one of their tasks.
In addition, AVIVA NDB Insurance PLC also offers the asset protection insurance that
includes, engineering class insurance which is meant by the protection against fire/lightning, ,
malicious damage, floods, explosion, inundation, , burglary and theft, storms, accidental
damage, riot and strike, , clearance of debris, terrorism and the third party liability for life and
property.
Talking about the coorperate culture in AVIVA NDB their vision, mission and core values are
very important.
Vision-To be a world class provider of financial solutions for protection and wealth creation
Mission-To be the most sought after Insurer in Sri Lanka for security,having excellence
in services,achieving leadership in identified segments of the market
The have the concept of insurance advisors becoming wealth planners to satisfy the needs
of the customers.They are also called as the team the customers can trust.Their initiative is
to provide better service with advanced technology to serve customers more efficiently.
The organization culture of AVIVA NDB is based on Family oriented . Every employee in the
AVIVA NDB insurance company is considered as a member of the AVIVA NDB family They
believe that their strength depends on family oriented culture and their core values,because
these core values reflect what is important to them.There are several aspects can be seen in
the corporate culture of this organization including,
Innovation
Dedication to customers
They want their customers to have complete trust in them, that they will always act fairly and
with integrity. Being transparent in the things they do, is one of the important value of AVIVA
NDB. They make available the information about their activities to international bodies, and
customers. This is part of a process that ensures they keep improving the way in which they
perform.
In their words they say,
In a world of me first! were putting our stakeholders at the center of everything we do. We
put people before policies. And where others see a policy, we see a person. You will see this
attitude at AVIVA NDB every day, in the little things we do differently that bring people and
personal concerns back into the insurance transaction. It is our way of reinforcing trust,
improving services and most of all, increasing value.So whoever you are, our mission remains
steadfast. We build our business around you
(AVIVA NDB annual report 2010)
3. The impact of the internal and external market elements upon AVIVA- NDB
External factors
Political factors
Changes in government policy and legislation affects to AVIVA NDB.The changes in
government
has a great effect to the tax treatment of financial products and services,
government pension arrangements and policies, the regulation of selling practices and
solvency standards. These changes may also change the existing and future business. They
are exposed to various local political, regulatory conditions, and business risks which may in
turn affect the demand for their products and services.
Economic conditions
.The complex conditions in the economies of major European markets has led to lower demand
for savings products. During 2011, there was a slowing economic growth. Longer-term low
interest rates in developed markets and inflationary threats increased the volatility in the
financial markets. The customers gave their preference for less complex products and reduced
their exposure for investment markets.
Considering Capital and credit market conditions
AVIVA NDB invest funds across various financial investments, including equities, fixed income
securities and properties. The company has to seek for the volatility in the market value of
these investments.Investment market factors also affect the demand for life insurance
products. As an example, increasing equity price levels effect have a positive effect on the
demand for equity-linked products, like unit trusts and unit-linked life insurance products.But,
this has a negative effect on the demand for products that offers fixed minimum rates of return.
The company is exposed to translation risk that arises from fluctuations in the values of the
foreign currencies such as euro and US dollar. These Movements in exchange rates affect
the value of the consolidated shareholders equity.
Demographic trends
The companys profits are affected by the demographic factors such as the aging population
and the focus on education.They were the key factors behind the introduction of the new
retirement benefit products and products that cater to education in 2010. , If there is a a high
proportion of older people, there will be a good demand for pre- and post-retirement planning.
Lower mortality rates, will increase the profitability of life insurance products but also will
reduce the returns on annuity product.
Natural factors
The profits of the insurance company are highly affected by the amount of claims they have
to pay out, in turn, for natural disasters which occur from adverse weather conditions,
earthquakes and other such natural phenomena. AVIVA NDBs exposure to large disasters
has been reduced through their focus on personal lines business and also small to medium
sized commercial risks in general insurance business.
Technological factors
The company has to explore new markets and products with new technologies to sustain
continuous growth. As a consumer need, AVIVA NDB Insurance launched Unit-linked or
Investment- linked products using their technical skills, for retirement and cater to education.
Internal factors
Customers
AVIVA NDB offers best value to its customers including both individuals and business
customers.They provide many services to the customers such as
Competitors
Competitors are the organizations in the same industry that provides same types of goods or
services to the same set of customers.The competitors of AVIVA NDB Insurance are
Employees
The engagement of the employees within the Company is measured by 4 factors advocacy,
pride, satisfaction and commitment.
There are training programmes to enhance the skills of the workers to make them easier to
adopt for changes and also the advancement of technology.
Aviva NDB has created an environment that is engaging, energising, challenging, and
rewarding for employees. There is a Sports Club, a voluntary staff committee to organize fun
events matching the demographical mix of the employees in the Company.
Providing the effective leadership which inspires, develops, motivates, and builds
capability among the team members.
Event Management
Entrepreneurial Leadership
Strategic Planning
Managing the supply chain efficiently and effectively and also keeping cost at a
minimum.
Implementing change management without affecting moral or the efficiency of the value
chain.
Proactive to the changing market or customer needs and working very closely with
marketing to full fill the product or service gaps.
Performance Governance
AVIVA NDB has a framework for monitoring the business profit and performance in all financial
and non-financial areas, in an effective manner. There is a well-developed structure of planning
of a 3 year rolling plan that is approved by the Board of Directors. According to the plan the key
performance indicators (KPI) have been established for each kind of business unit with the
defined targets. The levels of the achievements of the KPIs are reviewed on a weekly or
monthly basis by the senior management team. Solvency and liquidity are some of the key
elements of focus and the performance is reviewed by a team from Aviva's Asia Pacific
Regional Office.
According to the top management view,the most valuable resource of the company is their
work force.Therefore, they have a great interest on human resource development.To achieve
the goals ,they have to build a highly motivated team.They believe that, through HR
developments,they can reach to the success of the company.
Aviva NDB has empowered their sales force in order to meet both life and general insurance.
They are also called as wealth planners.The company expects to provide all the insurance
solutions to their customers by a single wealth planner.These trainees are given continuous
training programmes through their centre for excellence.They receive training for
professionalism,integrity and dedication to their customers.
In the companys plans for the achievement of goals , they have a proposal to employ their
wealth planners with laptops.This gives advantages of utilizing advanced technology, through
providing effective and efficient services to customers.Aviva NDB provides motivational
schemes not only for wealth planners,but also for their entire workforce such as regular reward
schemes for recognizing excellence.The main reason behind that is they want to build a
commited and motivated team, so they can achieve their targets easily.
In AVIVA NDB, The Board of Directors, have the responsibility of conducting the business
activities of the Company with accepted governance practices. Furthermore, the Board of
Directors, whose responsibilities are delegated to management, are accountable for the overall
management of the Company.
For the Executive responsibilities of the Company there are two Directors
Managing Director - directly responsible for day-to-day business operations of the Company.
Non-Executive Directors- do not have any business interest which could interfere with the
exercise of their independent judgement
requirements .The Boards duty is to approve the developed policies and to monitor the
performance of the management.
Financial performance
Shareholder dividends
Board Appointments
Board Meetings
At least 1 Board meeting is held weekly and if necessary additional meetings are held. And
sometimes decisions are approved through circular resolutions.
AVIVA NDB has designed its CSR projects strategically to benefit all its stake holders,
customers, employees and society. The company has given its cooperate commitment to the
area of safety and education through their CSR projects.
Educational programs
To promote their cooperate commitment on education they organized several CSR projects
such as Guru Pubuduwa seminars, Developing adults by positive thinking through
seminars,offering placement opportunities to university students,developing entrepreneurial
skills,recognizing excellence in arts-AVIVA-NDB Excellence Awards, sponsoring National
Civilian Bravery Award.
AVIVA NDB organized the Poson Safety Campaign and made arrangements for a special free
shuttle service between Anuradhapura and Mihintale. Also the volunteer lifeguards who were
the employees of AVIVA NDB saved the lives of many people who were going to be drowned
in the lakes.
Higher Education Scholarships are awarded to grade 5 students who get the heighest marks
from scholarships in each district since 1994.
Conclusion
From this research we can see that AVIVA NDB organization operates according to the
management and marketing concepts we have learned.The organizational structure and the
processes are based on giving priority for the customers needs.Customer is the main concern
of them.There is a motivating, encouraging environment in the company for the
employees.They are given special benefits to make them satisfied workers, so that they will
give their full contribution towards the success of the company by working under their
visions,missions and core values.In decision making process, even in executive level ,each
level is accountable for the superior levels for their decisions and everything they do.They can
not make decisions according to their own wish.The concepts such as division of
responsibilities,performance governance
References
AVIVA NDB A Life with Insurance. 2015. AVIVA NDB A Life with Insurance.
[ONLINE] Available at: http://www.manthrirathne.org/aviva-ndb/. [Accessed 21 July
2015].
Investor relations - Reports - Aviva plc. 2015. Investor relations - Reports - Aviva plc.
[ONLINE] Available at: http://www.aviva.com/investor-relations/results-andreports/reports/. [Accessed 21 July 2015].
Eagle Insurance Transforms Into AVIVA NDB Insurance | The Sunday Leader .
2015. Eagle Insurance Transforms Into AVIVA NDB Insurance | The Sunday Leader .
[ONLINE] Available at:http://www.thesundayleader.lk/2010/03/07/eagle-insurancetransforms-into-aviva-ndb-insurance/. [Accessed 21 July 2015].