SUMMER TRAINING PROJECT REPORT

Submitted to partial fulfillment of Master of Business Administration

Session- 2016-17
Analysis on performance appraisal process at SBI Life
Insurance
Company Guide

Submitted By

Name- Ashish Gupta

Name- Deepika Saini

Sales Manager

Roll No.-1516470011

Internal Guide
Name-Deepak Srivastava
Faculty-Business Administration
PRANVEER SINGH INSTITUTE OF TECHNOLOGY
Affiliated to Dr. APJAKTU
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DECLARATION
I hereby declare that the present report entitled analysis on performance appraisal
process of SBI Life Insurance, Kanpur is based on my original work. It contains no
material previously published or written by another person, nor has this material to a
substantial extent been accepted for the award of any other degree or diploma of the
university or other institute of higher learning.

Submitted ByDeepika Saini

1516470011
MBA 2 YEAR

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ACKNOWLEDGEMENT

Research Project Report is the one of the important part of MBA program, which has
helped me to gain a lot of experience, which will be beneficial in my succeeding
career.
For this with an ineffable sense of gratitude I take this opportunity to express my deep
sense of indebtedness and gratitude to Dr. KTV Reddy, along with Dr. A.K. Tiwari ,
Professor and Head of Business Administration Department, for their
encouragement, support and guidance in carrying out the project.
I am very much thankful to, my Project Guide Deepak Srivastava, Faculty-Business
Administration for their interest, constructive criticism, persistent encouragement
and untiring Guidance throughout the development of the project. It has been my
great privilege to work under his/her inspiring guidance.
I am also thankful to my Parents and my friends for their indelible Co-operation for
achieving the Goal of this study.

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EXECUTIVE SUMMERY

This project describes about the performance appraisal system which is followed in
SBI Life Insurance. This project also describes the problems faced by the appraises
and the appraisers in this system. It also elaborates about the steps taken by the
appraisers to improve the performances of the appraises so that their efficiency can be
increased and later the reward and recognitions are given in the form of promotions,
incentives and empowerment.
The performance appraisal management is the process of setting objectives, making
plans to achieve those objectives and accomplishing the desired results. Rewards and
recognition are the end stage of this process. Organizations use this system to assess
the performance of an individual, a team, a function and then the organization as a
total. In this project, the whole performance appraisal process is described for the
company in SBI Life Insurance.
During this project, I learnt the procedure and various other aspects of HR Function &
Operation by applying theoretical knowledge and concepts to the best.
Needless to say, errors and omissions are bound to occur.
Last but not the least, I am grateful to all those who happened to be a part of the
successful completion of this project and my mind and heart for going hand in hand.

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CONTENT
PART-I
CHAPTER 1: INTRODUCTION
1.1 General introduction about the sector

2-4

1.2 Industry Profile

4-11

CHAPTER 2: COMPANY PROFILE

2.1 Origin of the organization

13-16

2.2 Vision, Mission & Quality Policy

17-18

2.3 Growth and development of the organization

19

2.4 Present status of the organization

20-28

2.5 Functional departments of the organization

29

2.6 Organization structure and organization chart

30

2.7 Product and service profile of the organization/ competitors

31-46

2.8 Market profile of the organization (Competitors information,

46-55

SWOT Analysis, Future growth)

PART-II
CHAPTER

3:

STUDY OF THE

SELECTED

RESEARCH

PROBLEM
3.1 Statement & Introduction of the research problem

57-69

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3.2 Statement of the research objective

70

3.3 Scope of Study

70-71

3.4 Limitations of the research

72

3.3 Research design and methodology

72-74

CHAPTER 4 DATA ANALYSIS & INTERPRITATION

4.1 Analysis and interpretation of the data Collected with relevant tables

76-87

and graphs.

CHAPTER 5 SUMMARY AND CONCLUSIONS

5.1 Summary of learning experience/ Findings

89-90

5.2 Conclusion and recommendations

92

BIBILOGRAPHY

93

APPENDICES
Annexure

94-96

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List of Table

Table no.

Title

Page no.

Shows

objectives

of 75

performance appraisal
Shows how it help in 77
achieving organizational

goals
Shows explaining task 79

and activity
Shows
duration

performance appraisal
Shows point allocation 82

of SBI Life
Shows affect on work 84

efficiency
Shows appraisal system 86

able to develop or not

Shows contribution in 87

potential appraisal
Shows
basis

10

promotion process
Shows transparency in 90

of 81

of 89

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performance
11

appraisal

system
Shows satisfaction with 92
performance

appraisal

system

List of Figure

Table no.

Title

Page no.

Shows

objectives

of 76

performance appraisal
Shows how it help in 78
achieving organizational

goals
Shows explaining task 80

and activity
Shows
duration

performance appraisal
Shows point allocation 83

of SBI Life
Shows affect on work 85

efficiency
Shows appraisal system 86

of 81

able to develop or not

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Shows contribution in 88

potential appraisal
Shows
basis

10

promotion process
Shows transparency in 91
performance

11

of 89

appraisal

system
Shows satisfaction with 93
performance

appraisal

system

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CHAPTER 1
INTRODUCTION

1.1 General introduction about the sector

Insurance has been known to exist in some form or other since 3000 BC. The Chinese
traders, travelling treacherous river rapid would distribute their goods among several
vessels, so that the loss from any one vessel being lost, would be partial and shared,
and not total. The Babylonian traders would agree to pay additional sums to lenders,
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as the price for writing off the loans, in case of the shipment being stolen. The
inhabitants of Rhodes adopted the principle of general average, whereby if goods
are shipped together, the owners would bear the losses in proportion, if loss occurs,
due to jettisoning during distress. (Capital of ships caught in storms, would throw
away some of the cargo to reduce the weight and restore balance. Such throwing away
is called jettisoning) The Greeks had started benevolent societies in the late 7th century
AD, to take care of the funeral and families of members who died. The friendly
societies of England were similarly constituted. The Great Fire of London in 1666, in
which more than 13000 houses were lost, gave a boost to insurance and the first
insurance company, called the Fire Office, was started in 1680.
The origin of insurance business as in vogue at present, in traced to the Lloyds
Coffee House in London. Traders, who used to gather in the Lloyds coffee house in
London, agreed to share the losses to their goods while being carried by ships. The
losses used to occur because of pirates who robbed on the high seas or because of
occurs because of pirates who robbed on the high seas or because of bad weather
spoiling the goods or sinking the ship. In India, insurance began in 1818 with life
insurance being transacted by an English company, the oriented Life Insurance Co.
Ltd.... The first Indian Insurance company was the Bombay Mutual Assurance Society
Ltd, former in 1870 in Mumbai. This was followed by the Bharat Insurance Co. in
1896 in Delhi the empire of India in 1897 in Mumbai, the United India in Chennai,
the National Indian and the Hindustan Cooperative in Kolkata.
Later, were established the Cooperative Assurance in Lahore, the Bombay Life
(originally called the Swadeshi Life), the Indian Mercantile, the New India and the
Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies
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started as a result of the swadeshi movement in the early 1900s. By the year 1956,
when the life insurance business was nationalized and the Life Insurance Corporation
of India (LIC) was formed on 1 st September 1956, there were 170 companies and 75
provident fund societies transacting life insurance business in India. After the
amendments to the relevant laws in 1999, the L.I.C. did not have the exclusive
privilege of doing life insurance business in India. By 31.8.2007, sixteen new lives
insure had been registered and were transacting life insurance business in India.
We live in a risky world. Forces, largely outside our control, that makes threats
our financial well-being, constantly surround us. Thus, some of us will experience the
premature and dreadful death of a beloved family member; others will experience the
loss or destruction of their property from natural disasters. Still others will experience
poor health from cancer, heart attacks, and other diseases. In addition, some of us will
be totally and permanently disabled from a crippling automobile accident or a
catastrophic illness. Finally, others will experience the traumatic effects of a liability
lawsuit.They're all built into the working of the Universe, waiting to happen.
Therefore, Risk is pervasive conditions of human existence. It has a simple meaning
in every day usage but sometime it has a specialized connotation when used in
particular fields.

Definition of Risk

Risk is defined as "a condition in which there is a possibility of an adverse

deviation from a desired outcome that is expected or hoped for". Thus risk is a
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combination of circumstances, and in this combination there is possibility of loss. An

adverse even is possible and it has a probability from a zero to one. This it is neither
possible nor definite. We may or may not be able to measure the degree of risk but
the probability of the adverse outcome must be between zero and one.

The

undesirable even is known as deviation.

A pure & perfect technique for handling risk is by insurance. For most
individuals, this is the most practical method for handling a major risk. First, risk
transfer is used since a pure risk is transferred to the insurer. Second, the pooling
technique is used to spread the losses of the few over the entire group so that average
loss is substituted for actual loss. Finally, the risk may be reduced by application of
the law of large numbers, whereby an insurer can predict future loss experience with
some accuracy.

1.2 Industry Profile

INSURANCE
The insurance is related to the protection of the economic value of assets. Every asset
has a value. The asset would have been created through the efforts of the owner, in the
expectation that, either through the income generated there from or some other output,
some of his needs would be met. In the case of a motorcar, it provides comfort and
convenience in transportation. There is no direct income. There is a normally
expected lifetime for the asset during which time it is expected to perform. The owner,
aware of this, can so manage his affairs that by the end of that lifetime, a substitute is
made available to ensure that the value or income is not lost. However, if the asset
gets lost earlier, being destroyed or made non-functional, through an accident or other
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unfortunate event, the owner and those deriving benefits there from suffer. Insurance
is a mechanism that helps to reduce such adverse consequences.
Insurance is a contract between two parties - the insurer (the insurance
company) and the insured (the person or entity seeking the cover) - wherein the
insurer agrees to pay the insured for financial losses arising out of any unforeseen
events in return for a regular payment of "premium". These unforeseen events are
defined as "risk" and that is why insurance is called a risk cover. Hence, insurance is
essentially the means to financially compensate for losses that life throws at people corporate and otherwise.
Insurance Companies are active in the field of Life, Health & General
Insurance. The major part of insurance business is life insurance, the operation of
which depends on the law of the morality.

Why Insurance?
The entire effort of human life is to proceed from uncertainty to certainty. The
rigmarole of life proceeds with first acquiring the wherewithal to earn a living and
then striving for its betterment and ensuring that the comfort and pleasure derived
from a physical commodity or a human being continues. It is at the latter stage that
the mechanism of insurance comes in play.

The concept of insurance is in essence related to the protection of the

economic value of assets. Every asset whether physical or in form of a human being

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has a value. The asset is built up in the expectation that, either through the income
generated there from or some other output, some needs of the individual would be
met. For example, In the case of an industry its production is sold and income
generated. In the case of a vehicle, it provides comfort and convenience in
transportation.
However, there is a normally expected life cycle for every asset during which
time it is expected to perform its assigned role. So, a prudent individual can manage
his affairs so that by the end of that life cycle, a substitute is in place to ensure
continued benefit/comfort. However, if due to an accident or other unfortunate event,
the asset gets destroyed or made non- functional earlier, the person deriving benefits
therefore suffer. Insurance is the mechanism that helps to soften the impact of such
adverse consequences by providing for some monetary substitution to face such
unforeseen circumstance.
The need of insurance arises from the chances of an accidental occurrence
destroying or making an asset non-functional. Such loss producing eventualities are
called perils e.g. fire, floods, breakdowns, lightning, earthquakes, etc. however, it has
to be remembered that what is being talked about is only a probability of a loss. The
protection of Insurance is against a contingency that may or may not happen.

Life Insurance
Life Insurance is a contract between person and a life insurance company,
which provides your beneficiary with a pre-determined amount in case of your death
during the contract term.
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Buying insurance is extremely useful if you are the principal earning member
in the family. In case of your unfortunate premature demise, your family can remain
financially secure because of the life insurance policy that you have purchased.
The primary purpose of life insurance is therefore protection of the family in
the event of death. Today, insurance is also seen as a tool to plan effectively for your
future years, your retirement, and for your children's future needs. Today, the market
offers insurance plans that not just cover your life and but at the same time grow your
wealth too.

ROLE OF LIFE INSURANCE

Role 1: Life insurance as "Investment"
Insurance is an attractive option for investment. While most people recognize
the risk hedging and tax saving potential of insurance, many are not aware of its
advantages as an investment option as well. Insurance products yield more compared
to regular investment options, and this is besides the added incentives (read bonuses)
offered by insurers.
You cannot compare an insurance product with other investment schemes for
the simple reason that it offers financial protection from risks, something that is
missing in non-insurance products. In fact, the premium you pay for an insurance
policy is an investment against risk. Thus, before comparing with other schemes, you
must accept that a part of the total amount invested in life insurance goes towards
providing for the risk cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on
survival at the end of the term. In other words, if you take a life insurance policy for
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20 years and survive the term, the amount invested as premium in the policy will
come back to you with added returns. In the unfortunate event of death within the
tenure of the policy, the family of the deceased will receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs
10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year.
But in this case, the access to your funds will be limited. One can withdraw 50 per
cent of the initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to
approximately Rs 5-12 lakhs (depending upon the plan, age and medical condition of
the life insured, etc.) and this amount can become immediately available to the
nominee of the policyholder on death.
Thus insurance is a unique investment avenue that delivers sound returns in addition
to protection.

Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial
protection, to be more precise - to help outlast life's unpredictable losses. Designed to
safeguard against losses suffered on account of any unforeseen event, insurance
provides you with that unique sense of security that no other form of investment
provides. By buying life insurance, you buy peace of mind and are prepared to face
any financial demand that would hit the family in case of an untimely demise.

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To provide such protection, insurance firms collect contributions from many

people who face the same risk. A loss claim is paid out of the total premium collected
by the insurance companies, who act as trustees to the monies.
Insurance also provides a safeguard in the case of accidents or a drop in
income after retirement. An accident or disability can be devastating, and an insurance
policy can lend timely support to the family in such times. It also comes as a great
help when you retire, in case no untoward incident happens during the term of the
policy.
With the entry of private sector players in insurance, you have a wide range of
products and services to choose from. Further, many of these can be further
customized to fit individual/group specific needs. Considering the amount, you have
to pay now, it's worth buying some extra sleep.

Rule 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government
of India has offered tax incentives to life insurance products in order to facilitate the
flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an
individual is entitled to a rebate of 20 per cent on the annual premium payable on
his/her life and life of his/her children or adult children. The rebate is deductible from
tax payable by the individual or a Hindu Undivided Family. This rebate is can be
availed up to a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000.
By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum
assured. (Depending upon the age of the insured and term of the policy) This means
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that you get an Rs 12,000 tax benefit. The rebate is deductible from the tax payable by
an individual or a Hindu Undivided Family.

Role 4: Life insurance as "Financial Planning"

Most insurance plans available today have a built in savings element. Plans
like the Endowment Plan, Money back Plan, Child Advantage Plan, Preferred
Retirement Plans, etc. allow you to meet your dual financial goals of life cover and
Savings for the future.
You may avail of a loan from the insurance company against certain plans.
Your policy could also be pledged as collateral to raise funds from banks and other
financial institutions. In case of your unfortunate death the loans may be repaid from
the proceeds of the life insurance policy. Insurance promotes compulsory savings with
regular premium payments and helps build up a corpus of funds along with financial
security for the dependents in case of premature death. For your medical needs and
that of your family.
Hospitalization costs and quality healthcare is becoming increasingly
expensive. Without insurance, you can actually face a situation where you have
withdrawn all your money and borrowed to pay the medical bills. This can be
provided with our Critical Illness Benefit. Insurance provides you the option of
covering yourself towards any critical illnesses that can become extremely costly.
Choosing this facility pays you a lump sum upon diagnosis of certain diseases like

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cancer, kidney failure, heart attack, stroke, coronary bypass, vital organ transplants,
Alzheimer's disease, paralysis, etc.

Role5: Role of Insurance as "Economic Development."

It reducing burden of Government in providing relief to the old citizens as
well as providing funds to Govt. for nation building activities. Direct investments
made by Insurance serve a twofold purpose. It acts as a major instrument for the
mobilization of savings of people, particularly from the middle and lower income
groups. These savings are channeled into investments for economic growth thereby
creating employment. These savings in turn go into the task of nation building.

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CHAPTER 2:
COMPANY PROFILE

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Name of The Company SBI Life Insurance

Office Address
Address

SBI LIFE INSURANCE COMPANY LTD,

405-407, 4TH Floor, Ratan Esquire,
Chunnigunj,

City-

Kanpur.

State

Uttar Pradesh

Country

INDIA

Pin

208001

`Telephone no -

0512-3013054

Head Office Address

SBI General Insurance Company
Street: Natraj, 101, 201& 301
Area: Junction of Western Express Highway & Andheri Kurla- Road
City: Andheri (East)
State: Mumbai- 400069
Country: INDIA.
Customer Care Numbers
1800-22-9090,022-61910000
Website- www.sbilife.in
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Email- info@sbilife.co.in

2.1 ORIGIN OF THE ORGANIZATION

About the Company:

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas
Cardiff. SBI owns 74% of the total capital and BNP Paribas Cardiff the remaining
26%. SBI Life Insurance has an authorized capital of Rs. 2000 cr. and a paid up
capital of Rs. 1000 cr. State Bank of India enjoys the largest banking franchise in
India.

Along with its 5 associate banks group has the unrivalled strength of over 20000
branches across the country, arguably the largest in the world. BNP Paribas, one of the
leading banks in Europe, ranks 5th in the banking industry worldwide. It is the 6th most
valuable international banking brand as per Brand Finance 2008. BNP Paribas Cardiff
is the insurance arm of BNP Paribas- Euro Zones leading Bank. It is one of the
leading life insurers in France, and a worldwide leader in Creditor insurance products.
SBI Lifes mission is to emerge as the leading company offering a comprehensive
range of life insurance and pension products at comprehensive range of life insurance
and pension products at competitive price, ensuring high standards of customer
service of customer service and world class operating efficiency.

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SBI Life has a unique multi-distribution model encompassing vibrant Bank assurance,
Retail Agency, and Institutional Alliances and Corporate Solutions distribution
channels.

SBI Life extensive leverage the State Bank Group relationship as a platform for crossselling insurance product packages such as housing loans and personal loans. SBIs
access to over 100 million accounts across every regions and economic strata in the
country, thus financial inclusion. Agency Channel, comprising the most productive
force of over 85000 Insurance Advisors, offers door to door insurance solution to
customers.

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MANAGEMENT STRUCTURE

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Page | 18

2.2 Vision, Mission & Quality Policy

Vision:

To be the most trusted and preferred life insurance provider

My SBI: First in customer satisfaction

My Customer first

Mission:
"To emerge as the leading company offering a comprehensive range of life
insurance and pension products at competitive prices, ensuring high standards of
customer satisfaction and world class operating efficiency, and become a model
life insurance company in India in the post liberalization period".
We will be prompt, polite and proactive with our customers.
We will speak the language of young India.
We will create products and services that help our customers achieve
their goals.
We will go beyond the call of duty to make our customers feel valued.

We will be of service even in the remotest part of our country.

Values :

Trustworthiness
Ambition
Innovation
Dynamism
Excellence

Major benefits

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 An infrastructure that can support broad information integration for the enterprise
portal, relational databases, business intelligence, and enterprise content management
applications
Unified portal creation and administration across the enterprise.
A Web services-based service oriented architecture that delivers Web services and
the ability to unlock existing assets as re-usable Web services.
Projects that were previously shelved due to high integration costs can
now come off the shelf and show immediate ROI Products and technologies used.
Onlinesbilife.com is implemented on BEA Web Logic Platform 8.1 with Oracle 9.1
as a backend.
Tuxedo acts as a middleware to integrate the Web-based application with the Indigo
engine.
The core insurance engine is Indigo; the entire business logic from processing the
proposal to policy issuance and policy servicing resides in Indigo.
Behaviour tracking of user, group and profile management based on LDAP,
RDBMS, legacy or a combination
Rules management for segmentation, content selection and entitlement at the Port let
or page level.
Web flow and pipeline MVC architecture.
Support for CSS-based skins and multi-channel portals.
Broadband Internet connectivity to a central server from all over the country.
Security is addressed with Nortel/Alton switch and Checkpoint Network Security
software.
Strategy, architecture, design and implementation was done by SBI Life's IT team.

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 E-business infrastructure software was undertaken by BEA Systems.

Software design and development was done by Satyam.
Security was handled by Nortel and Check Point.

2.3 Growthand Development of SBI LIFE

SBI Life earns a net profit of Rs.861 crores in FY 2015-16; individual new

business premium recorded a phenomenal growth of 33%.

As compared to last years profit i.e. Rs.820 crores, there is an increase of 5%.
The individual new business premium has increased from Rs. 3,757 crores in
FY 2014-15 to Rs. 4,978 crores this fiscal year, recording a phenomenal

growth of 33%.
The gross total premium received in FY 2015-16 was Rs. 15825 crores, of
which the new business premium accounted for Rs.7, 107 crores and renewal
premium accounted for Rs. 8,719 crores. Corresponding figures for last
financial year were Rs. 12,867 crores, Rs.5529crores and Rs. 7338 crores

respectively.
Total assets under management (AUM) has grown by 12% to Rs. 79,828
crores as on 31st march 2016 from Rs. 71,339 crores as on 31st march 2015.

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2.4 Present status of organization

SBI Lifes New Business Premium grew by 78% at Rs 1866 crores in
Q1 FY 16-17
Company also announced its Embedded Value which stood at INR 12,999
Crores as on 31st March 2016

Highlights of Q-1 in FY 16-17

Registered growth in Total NBP by 78%, whereas the industry grew at 33%.
The Total NBP stood at Rs. 1,866 crores as against Rs. 1,047 crores in the

same period of FY 15-16.

Individual New Business Premium APE grew by 69 % at Rs 722 Crores,

while the industry grew at 16%.

The New Business Premium Market Share of SBI Life among the private

players stands at 21.2% vis--vis 14.6% last year in the same period.
Individual New Business Premium (APE) private market share stands at 18%

vis--vis 12.9% last year.

6% increase in Net Profit after tax to Rs. 215 crores as against Rs. 202 Crores
in Q1 of FY 15-16.

Highlights of Q-1 in FY 16-17

The company also declared its Market Consistent Embedded Value and New
Business Margins for the first time as on 31st March 2016

Market Consistent Embedded Value of the company stands at 12,999 Cr, as

on 31st March 2016

The New Business Margin, based on medium term acquisition expense
assumption, stood at 16%

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The New Business Margin, based on current level of acquisition expense,

stands at 14.2%

Mumbai, 10th August, 2016:SBI Life Insurance, Indias largest and one of the
most trusted private life insurers, today declared its unaudited financial results for
the quarter ended 30th June 2016, carrying forward the success story of FY 15-16,
showing strong all round growth.
The Company witnessed a strong growth of 78% in its Total New Business
Premium at Rs. 1,866 Crores in the first quarter of FY 16-17, as against 33 %
growth in the industry.
The Company recorded a growth of 69% in its Individual New Business Premium
(APE), while the industry reported a growth of 16%. The Total Market Share of
SBI Life has increased to 21.2% from 14.6% of last year. The Individual APE
Market Share increased to 18% from 12.9% last year. The Company reported a Net
Profit after Tax of Rs. 215 crores for the first quarter of FY 16-17, an increase of
6% over the last year in the same period.
The Company for the first time also declared its Market Consistent Embedded
Value and New Business Margins, as on 31st March 2016. The Market Consistent
Embedded Value of the Company stands at 12,999 Crores as on 31st March 2016.
The New Business Margin based on medium term acquisition expense assumption
stood at 16%, while the New Business Value based on current level of acquisition
expense stands at 14.2%.
Commenting on the results, Mr. Arijit Basu, MD & CEO, SBI Life Insurance,

Page | 23

said, "All distribution channels have been performing in an exemplary manner. The
momentum from last years success continues to be high in the current financial
year as well. The Company registered a strong growth of 78% in its New Business
Premium in the Q1 of FY 16-17, which helped us increase our Market Share within
the private players to 21.2% vis--vis 14.6% last year. Also this year, for the first
time, the company is publishing its Market Consistent Embedded Value (MCEV)
which stands at 12,999 Crores.
Mr. Basu also expressed satisfaction that in the first quarter of FY 16-17, the Assets
under Management for the Company rose by 15% at Rs. 85,922 Crores as against
the same period in the last year. The Company showed a robust 13th month
Persistency of 78.4%, up from 77.02%. SBI Life also won Life Insurance
Company of the Year award, at The Indian Insurance awards 2016, Fintelekt,
validating its strong and robust growth.

SBI Life Insurance Inaugurates its New Regional Office at Delhi

Further strengthening its business and customer services in the region

Delhi, July 29, 2016: SBI Life Insurance, in its effort to tap the increasing business
potential in the Delhi Region, today inaugurated its New Regional Office in Delhi. The
New Regional Office, situated at 2nd Floor, B Wing, The Statesman House,
Barakhamba Road, New Delhi - 110 001, was inaugurated by Mr. Arijit Basu, MD &
CEO, SBI Life Insurance, in the presence of Mr. Pallav Mohapatra, Deputy Managing
Director, State Bank of India, Mr. Anand Pejawar, Executive Director - Marketing,

Page | 24

SBI Life Insurance, Mr. Daljit Rakhra, Regional Director Delhi Region, SBI Life
Insurance and other regional staff.
During the inauguration, SBI Life Insurance, under its CSR initiatives, also distributed
personal hygiene kits to children undergoing cancer treatment in Delhi. These kits will
prove very useful to maintain the overall health of such children and their families.
The Company along with Cankids Kidscan, promoted Health & You, an initiative
to practice personal hygiene amongst the family of cancer affected children and
generate awareness towards maintaining cleanliness which is very critical to the
treatment of the child.
Speaking at the Inauguration, Mr. Arijit Basu, MD & CEO, SBI Life Insurance, said,
The performance of SBI Life has been remarkable in the FY 15-16, where the
company showed a phenomenal growth of 33% in its Individual New Business
Premiums with Delhi region being one of the important regions for SBI Life. We felt
the need for opening a bigger and centrally located Regional Office in Delhi to further
enhance our services to the existing as well as new customers.
In Delhi Region, SBI Life Insurance, in the current fiscal FY 16-17, till 30th June
2016, has reported a growth of 54% in its Individual New Business Premium, at Rs. 87
crores as compared to Rs. 57 crores during the same period in FY 15-16. The Total
New Business Premium in the Region has grown by over 42% to Rs. 189 crores, in FY
16-17, till 31st June 2016, as compared to Rs. 133 crores during the same period last
fiscal. In Gross Total Premium also, SBI Lifes Delhi Region witnessed a growth of
over 25% to Rs. 343 crores as compared to Rs. Rs. 274 crores during the same period

Page | 25

last Financial Year.

SBI Life provides livelihood to over 9,300 plus local populations in the Region. SBI
Life offers its services to the customers of Delhi Region through its 75 offices and a
strong workforce of over 1,200 employees. SBI Life distributes its products through its
huge network of over 8,100 strong and well trained Insurance Advisors and through
over 2,979 State Bank of India and SBBJ branches.

Key Milestones achieved by SBI Life:

1.

Won the Life Insurance company of the year award , at THE INDIAN

INSURANCE AWARDS 2016 Finkelekt.

2 . Adjudged as one of the Most Trusted Brand, 2015 for the fifth consecutive year
by The Economic Times Brand Equity - Nielsen Survey.
3 . Won the 'Golden Peacock Award for Risk Management for the year 2015.
4 . Adjudged the Best Life Insurance Company (Private Sector) at the Lokmat BFSI
Awards 2015 by World HRD Congress.
5 Adjudged the "The Economic Times Best Corporate Brands 2016".
6 . Won the Brand Excellence Award in Life Insurance (Private Sector), by ABP
News at the CMO Asia Awards 2015
7 . SBI Life awarded Golden Peacock National Quality Award for the year 2015 at
IOD India's 26th World Congress on Leadership for Business Excellence &
Innovation
Sbi life posts net profit of Rs. 861 crore in fy 2015-16, individual new
business

premium

recorded

phenomenal

growth

of

33%

Page | 26

Mumbai, May 02, 2016: SBI Life Insurance today announced a net profit of Rs.
861 crores as compared to last years net profit of Rs 820 crores, an increase of
5%. The individual new business premium has increased from Rs. 3,757 crores in
FY 2014-15 to Rs 4,978 crores this fiscal year, recording a phenomenal growth of
33%.
Commenting on the financial results of the Company, Mr. Arijit Basu, Managing
Director and CEO, SBI Life, said, "FY 2015-16 has been one of the strongest for
the company with 29 % growth in Total New Business Premium and 37 % in Rated
Individual New Business Premium as compared to 8 % for the industry. We have
entered the 16th successful year in the insurance business, with a strong multichannel distribution system, innovative new products and good customer service.
Our focus will be on further enhancing our distribution efficiency, lowering
operational cost, introducing innovative products and continue to be customer
centric. We look forward to the coming year and promise our continuous and
dedicated efforts."

Key Highlights of SBI Life performance during the Financial Year 2015 16
and Q4 2015-16:
1

Net worth increases to Rs. 4,733 crores from Rs 4,039 crores in the last

fiscal.
The New Business Premium has increased by 29% to Rs 7,107 crores as

compared to Rs. 5,529 crores in FY 201415.

Individual New Business Premium has grown by 33% to Rs. 4,978 crores as

compared to Rs. 3,757 crores in FY 2014-15.

The Gross Total Premium received in FY 2015-16 was Rs. 15,825 crores, of
Page | 27

which the new business premium accounted for Rs. 7,107 crores and renewal
premium accounted for Rs. 8,719 crores. Corresponding figures for last
financial year were Rs. 12,867 crores, Rs. 5,529 crores and Rs. 7,338 crores
5

respectively.
Total Assets under Management (AUM) has grown by 12% to Rs. 79,828
crores as on 31st March 2016, from Rs. 71,339 crores as on 31st March

2015.
Net profit during Q4 increased by 25 % from Rs 205 crores to Rs 256 crores

and in FY 15-16 by 5% from Rs 820 crores to Rs 861 crores

Operating Expense ratio has increased to 9.2%, from 9.1% in the previous

year.
Covered 208 lakh lives as on 31st March 2016, an increase of 57 % over the

previous year.
Covered 285,027 lives in the social sector as against the mandated 55,000

10
11

lives.
Solvency ratio was 2.12 as against the regulatory mandate of 1.5.
13th month persistency stood at 77.67%, an increase of 1.8% over the

12

previous year.
The total number of SBI Life offices is 774, across India.

In FY 2015-16, SBI Life has been awarded as one of the Most Trusted Private
Life Insurance Brand by The Economic Times, Brand Equity for the fifth
consecutive year in a row. SBI Life won the best ad under the insurance category
for Great Dad Campaign at India Awards. It also won the Golden Peacock awards
for Risk Management. Another feather in the cap was the Brand Excellence in Life
Insurance (Private Sector) awards at the ABP News Brand Excellence awards.
These awards are testimony to the companys value-driven commitment towards its
customers.
In FY 2015-16, SBI Life reinforced its outreach initiatives in the realm of child
Page | 28

welfare, across different parts of the country, in line with its affirmed CSR goals.
The company has extended its support to nurture not only the educational
aspirations of the children but also providing for their physical wellbeing.
Significant measures have been taken to aid the provision of better infrastructure
and healthcare facilities to remote areas of the country to ensure that all sections of
the society get an equal opportunity to sustain themselves in a healthy
environment.

SBI Life supported education for the visually impaired, distributes 200
braille kits on 15th Founders Day.

SBI Life distributed 52,000 Lunchboxes boxes pan India as part of

itsKhushiyon ka Lunchbox initiative.

SBI Life supported Lokanayak Leprosy Eradication Trust to adopt Adivasi

community at Karela Pada, Vasai.

SBI Life Insurance has contributed towards setting up, SBI Life Knowledge
Centre, at Wayanad District, Kerala.

SBI Life provided better healthcare services for under privileged children
towards the procurement of various medical equipment for K J Somaiya
Medical Trust.

SBI Life extended a helping hand by contributing towards the construction of

a Hydrotherapy project of Alakendu Bodh Niketan Residential at Kolkata to
Page | 29

support differently abled children.

SBI Life Insurance in association with Agastya International Foundation

contributed for the set up cost of three Science Centers at Badalapur (Thane
District), Kolhapur (Kolhapur District), and Kudal (Sindhudurga District) in
Maharashtra.

SBI Life empowered the students of Bengalurus Guruprasad Education

Society of Bangalore, by providing them with much needed infrastructural
aid.

SBI Life distributed 40,000 educational kits, under its Shiksha Se

Safalta initiative, to school going underprivileged children thus creating a
better learning environment for them.

SBI Life Insurance has a host of products in various categories like protection,
wealth creation, savings, child, retirement, etc. together with insurance, to address
needs of diverse customer segments. Some of the key products that were launched
this year are SBI Life - Smart Woman Advantage Plan, SBI Life - CSC Saral
Sanchay, SBI Life - Smart Humsafar, SBI Life - eWealth Insurance, etc. On the
technological front, it launched the SBI Life Connect Life app for paperless sales
closure and two more digital Initiatives - Customers Missed call for fund value and
query through easy access and Digilife An innovation lab.

2.5 Functional departments of the organization

Human resource department

Page | 30

Marketing department

Finance department

Training department

Investment

IT

2.6 Organization structure and organization chart

Page | 31

2.7 Product and service profile of the organization/ competitors

Page | 32

SBI Life Insurance Plans in India

TYPES OF SBI LIFE INSURANCE
Unit Linked Plans

SBI Life - Smart Privilege

SBI Life eWealth Insurance

SBI Life Smart Wealth Assure

SBI Life - Smart Power

SBI Life - Smart Scholar

SBI Life Smart Wealth Builder

SBI Life- Saral Maha Anand

SBI Life- Smart Elite

Saving Plans

SBI Life Smart Women Advantage

SBI Life Smart Swadhan Plus

Page | 33

SBI Life - Shubh Nivesh

SBI Life - Smart Income Protect

SBI Life Flexi Smart Plus

SBI Life Smart Money Back Gold

SBI Life Smart Guaranteed Saving Plan

SBI Life Smart Humsafar

SBI Life Smart Money Planner

SBI Life CSC Saral Sanchay

Pension Plans

SBI Life - Lifelong Pension Plan

Child Plans

SBI Life Smart Champ

SBI Life - Smart Scholar

Page | 34

Protection Plans

SBI Life - Smart Shield

SBI Life - Saral Shield

SBI Life eIncome Shield

SBI Life eShield

SBI Life Grameen Bima

Retirement Plans
SBI Life Saral Pension
SBI Life Retire Smart
SBI Life-Annuity Plus

1.

SBI Life Insurance Unit Linked Plans:

Unit linked plans are meant for those people who want to invest in life insurance but
still have a bit of an appetite for risks on investments. These plans use a part of the
premium to provide insurance cover while the remainder is invested in the market.
The plans offered under this scheme are:

SBI Life Smart Wealth Builder :This is a non-participating unit

linked life insurance plan that has been designed to make sure that you can invest
as much as you can afford and still manage to watch your wealth grow. The

Page | 35

design of the scheme offers policyholders the flexibility to decide their premiums,
the policy tenure and even the mode of payment of premiums.

SBI Life Smart Wealth Assure :This too is a non-participating ULIP

which offers investors the advantages of a life insurance policy and an opportunity
to invest in the markets via various funds to help their wealth grow. It is a single
premium payment scheme that allows for partial withdrawals that can be used to
meet financial obligations that may arise at a later stage.

SBI Life Saral Maha Anand :The Saral Maha Anand scheme is a unit

linked, non-participating life insurance plan which allows you to invest in

accordance with your appetite for risk. It even lets you decide how much
insurance you want to cover yourself which is subject to certain min and max
amounts.
o

SBI Life Smart Scholar: This is a ULIP that is aimed at those who
want to make sure that the needs of their families are taken care of even if they are
not around. It offers the beneficiary the benefit of the payment of the sum assured
under the policy and a waiver of premiums so that policy remains in force even in
the unfortunate event of the death of the policyholder.

Elite: This is unit linked policy that offers life insurance cover of 7 to

10 times the annual premium paid. It also allows for premiums to be paid under
the single pay scheme. The benefits of this policy include the option to increase or

Page | 36

decrease the insurance cover and cover for accidental death or accidental total
permanent disability.

Insurance: This ULIP offers investors life insurance cover and

investment opportunities at affordable premiums. It also offers liquidity options

by letting investors make partial withdrawals and a choice between a level cover
or an increasing cover scheme.

2.

SBI Life Insurance Child Plans:

If you have children, then there is no doubt that you have thought about their future
and how you can provide for them in the unfortunate event that you are not around.
To address such concerns the following plans are offered
o

SBI Life Smart Champ Insurance: This is a life insurance policy that
can be taken to make sure that the future of your child is secured against all
eventualities. This plan offers investors benefits like lump sum payments in 4
installments once your child attains the age of 18 years, waiver of premiums and
the opportunity to pay the premium in one go.

SBI Life Smart Scholar: This insurance plan offers a double death
benefit of the payment of the sum assured and a waiver of the remaining
premiums. It also offers accidental death and total permanent disability benefits
along with partial withdrawal benefits.

Page | 37

3.

Plans: The fact of life is that you are not going to be working for the rest of

your life. So what happens to your income when you do stop working? The best
way to answer that question is to go in for pension plans like:

SBI Life Saral Pension: Its never too late to put something aside for
retirement and that is why this plan offers investors guaranteed simple
reversionary bonuses, maturity bonus which is the sum assured plus the simple
reversionary bonus plus terminal bonus if any. This plan can also be associated
with various riders that help enhance the life insurance cover provided.

SBI Life Retire Smart: This is a non-participating unit linked pension

plan that invests your money into various funds and guarantees a minimum return
of 101% of all premiums paid. It also offers boosted fund value through additions
of up to 210% of the annual premium paid subject to certain conditions.

SBI Life Annuity Plus: The Annuity Plus is a non-participating

immediate annuity plan that offers the insured a regular income from the age of 40
years with the option to choose the frequency of annuity payouts. This plan can
also be enhanced by purchasing the accidental death rider. The plan also offers a
return of premium or a return of balance premium options.

4.

SBI Life Term Insurance Plans:

Page | 38

Protection plans can be term plans that make sure that, even if you are not there
anymore, your familys financial future is secure. The protection plans offered by
SBI are:

SBI Life Smart Shield: This is a term plan that offers a large sum
assured for a nominal premium. It can also be coupled with various rides that
enhance the cover this plan provides. It also includes rewards for leading a
healthy life. The plan can also be taken as level or increasing term assurance or
decreasing term assurance to secure a loan you may have taken.

SBI Life Saral Shield: This is a traditional term insurance plan that
can be taken to ensure that in the unfortunate event of your death, your family is
well taken care of. This plan features single premium payment and regular
payment options and can be enhanced by the addition of certain riders.

SBI Life eShield: This is a non-linked and non-participating term plan

that has, as its main feature, the option to purchase the life insurance plan online
.It too offers rewards for leading a healthy life and accidental death benefits. It is a
plan that will offer your family financial security for premiums that are very
affordable. This plan is offering 1 crore life cover.

SBI Life Grameen Bima: This is an individual, micro insurance term

plan that is meant to provide the financially weaker segments of society with an
opportunity to secure themselves against tough times. This insurance plan does

Page | 39

not require health checkups and offers an insurance cover that can be as high as
60 times the total premium paid.

5.

SBI Life Endowment Plans:

A savings plan is a life insurance plan that can offer you a double advantage. Not
only does such a plan provide you with a life cover but it also provides a regular
inflow of funds. The plans on offer under this scheme are:

SBI Life Smart Income Protect: This is an insurance plan that offers
two benefits to the insured. The first is that they are provided with a life insurance
cover and the second is that they get the benefit of a regular income. The policy
also offers reversionary and terminal bonuses along with a guaranteed payout of
11% of the sum assured for 15 years after the policy matures.

SBI Life Smart Guaranteed Savings Plan: This is a nonparticipating savings plan that offers guaranteed additions that are calculated at a
rate of 5.5% to 6% and are applied to the cumulative basic premiums that have
been paid. They also offer the option to pay premiums only for 7 years.

SBI Life Smart Money Back Gold: This traditional money back plan
offers the advantages of a life insurance policy with an income coming in at

Page | 40

regular intervals. The insurance cover under this scheme can be enhanced using a
wide range of riders available for this plan.

SBI Life Shubh Nivesh: This scheme is a non-linked profit

endowment assurance plan that offers the flexibility to turn this policy into a
whole life insurance policy. It also offers benefits like a choice between single
premium payment or regular premium payment options and options to receive the
basic sum assured over a period of time.

SBI Life - Smart Humsafar: A joint life insurance plan with savings
options where a person and his/her spouse can be covered under a single policy.
With death benefits, this plan also offers maturity benefits in case either or both
partners survive till the policy period.

SBI Life - Smart Money Planner: A limited premium paying

individual non linked plan that offers profit endowment and guaranteed cash
inflows at regular intervals which also doubles up as a life cover in case of the
unfortunate event of the demise of the life insured with tax benefits as per the
Income Tax Act of 1961.

SBI Life - CSC Saral Sanchay: Offered through the Common Service
Centre Network under the National eGovernance Plan of India, this is a nonlinked, non -participating, variable insurance plan that offers an option of savings

Page | 41

too, along with a death benefit that would be paid in case of the unfortunate
demise of the life insured.

SBI Life - Saral Swadhan: A non-linked, non-participating term

assurance plan meant for individuals that provides life cover for a period of 10
years or 15 years and gives a higher return on investment upon survival of the life
insured till the maturity period. The premiums and benefits under this plan are
eligible for tax benefits.

SBI Life - Flexi Smart Plus: An individual, participating variable

insurance product that can be custom-tailored to change as per the customers

needs. It offers a host of bonuses on the maturity value as well as a death benefit
as per the Gold or Platinum option.

6.

SBI Life Group Plans:

SBI offers various corporate solutions for the statutory and voluntary needs of
employers.
It also helps an organization retain and reward its employees with attractive
benefits.

Retirement Solutions
SBI Life Insurance Group Retirement Plans help provide financial stability and
protection to the employees family.
Page | 42

SBI Life Kalyan ULIP plus: A fund based group insurance plan. The
benefits offered by this plan can be obtained by the master policy holder as well
as by each member of the group.

SBI Life Cap AssureGold: Offered only to employer/ employee

groups i.e. to the employers/ state government/ central government who want
SBI Life to manage their employees gratuity, leave encashment and
superannuation benefit schemes.

SBI Life Swarna Jeevan: The SBI Life Swarna Jeevan provides
higher annuity rates.

SBI Life Gaurav Jeevan: The SBI Life Gaurav Jeevan is provided for
central government/ state government and government agencies who wish to
purchase their existing or emerging in respect to annuity payments for
compensation to landowners whose lands are being taken.

SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana: As per the
Pradhan Mantri Jeevan Jyoti Yojana, this non-linked, non-participating plan is an
annually renewable group term insurance that provides a death benefit of Rs.
2,00,000 at an annual premium of Rs. 330 only. No medical examinations are
required for getting enrolled in the plan.
Page | 43

Group Protection Plans

SBI Life Group Protection Plans help secure an employees familys financial future
in the event of the unfortunate circumstance of death.

SBI Life Sampoorn Suraksha: A group term insurance plan that can
be renewed. It offers excellent protection at affordable rates.

SBI Life Suraksha Plus: A group insurance scheme like company

employers or government institution.

Group Micro Insurance Plans

SBI Life Group Micro Insurance Plans are for customers with small savings and
low household income.

SBI Life Grameen Shakti : A plan to provide life insurance to the

underprivileged sections of the society.

Page | 44

SBI life Grameen Super Suraksha: This is for the rural section and
for the underprivileged parts of the society who opt for life insurance protection
without maturity benefit.

Group Loan Protection Products

These are affordable plans that help share the burden of your liabilities.
SBI Life RiNn Raksha: SBI Life RiNn Raksha plan assures that you get to enjoy
the simple joys of life like taking a vacation overseas with the family, buying a
dream car, building a house without having to worry about liabilities.

INSURANCE INDUSTRY IN INDIA/ COMPETITORS

1. ICICI Prudential: Its a joint venture of ICICI bank, one of the biggest bank of
India and Prudential PLC, a financial monster from Britain with 74% and 26%
holding respectively. ICICI Prudential has over 1500 offices nationwide and it holds
the total asset of over $13 billion.

Page | 45

2. STATE

BANK

OF

INDIA:

State Bank of India (SBI) is one of the largest Indian banks. On the trailing four
quarters it reported profit of Rs 7,677 crore. The bank has been able to post good
bottom line growth primarily because of improvement seen in its net interest margin
(NIM). For the December quarter of 2012, the banks NIM increased by 44 basis
points to 4.05 per cent, which is one of the best in the industry. For the trailing four
quarters the bank is facing headwinds in posting good bottom line mainly because of
higher provisioning. It is facing asset quality pressure which is evident from the fact
that for the December quarter of 2011 the net NPA of the bank increased by 61 basis
points to 2.22 per cent on a Yoyo basis while on a sequential basis it increased by 18
basis points. SBI is currently trading at a book value of around 2x which should be
considered as fairly valued Mr. Mahadev Nagendra Rao (MD & CEO)

3. Bajaj Allianz: A joint venture between two big companies, Bajaj Group and
Allianz AG. Headquartered in Pune, the company is one of the fastest growing
general and life insurance Company in India with over 1200 branches across India
and variety of services in insurance sector.

Page | 46

4. Tata AIG: Another joint venture from India's monster Tata Group and America's
insurance specialist, AIA (American International Assurance). Started operations in
2001, the stock holding is 74% and 26% for Tata and AIA respectively. It works in
almost every vertical in its sector.

5. Aviva India: Started its operation in 2002, its a joint venture between world's
insurance monster Aviva and India's Dabur Group with a stock sharing of 26% and
74% respectively. It has over 160 branches in India and employee strength of over
5000. Apart from that, Aviva has already had associates in over 70 countries.

Page | 47

6. MetLife India: "Have you met life today?" this signature line is from Metropolitan
Life Insurance Company, commonly known as MetLife. Founded in 1868 in New
York, the company is one of the oldest life insurance company in the world and with a
turnover of around $53 billion, its a market leader in terms of revenue.

7. Max New York Life Insurance: Founded in 2000 and started its operation in
2001, Max New York Life Insurance is a joint venture between Max India Ltd and
New York Life Enterprise. With over 25 life insurance policies, it has a turnover of
around $400 million.
Mr. Rajesh Sud (CEO & Managing Director).

8. ING Vysya Life Insurance:Also known as ING Life, the company is

headquartered in Bangalore. Started its operations in 2001, the company recently has
completed a decade in India. Its a joint venture between Exide Industries and ING
Insurance International BV. With over 1 million customers, it has presence in over 200
cities in India. Mr. Rajan Raheja (Chairman), Mr. Satish Raheja (Director).

Page | 48

9. AEGON Religare Life Insurance: Its a joint venture among AEGON - an

international life insurance company, Religare - world's financial service leader and
India's financial service group, Bennett, Coleman and Company. Started its business
in 2008, the company has gain good market share in short span of time.

9. Birla Sun Life:Its a joint venture between Aditya Birla Group and Sun Life
Financial from Canada. Established in 2000, the company has experience of over 10
years. It has a network of over 600 branches across India, covers 1500 cities, around
1350000 life advisers and has revenue of over $500 million. Mr. Jayant Dua (MD &
CEO).

Page | 49

11. Bharti AXA Life Insurance: Started in 2006, its a joint venture between Bharti
Enterprise - a leading telecom company in India (Airtel) and AXA Group - an
international market leader in insurance sector. With 74% and 26% market share
respectively. With presence in all over India, the company provides many services in
all verticals.

PURPOSE AND NEED FOR INSURANCE

Functions of Life Insurance: a) Protection

The four hazards against which life insurance offers protection are:
Death
Disability
Disease
Destitution
Page | 50

b) Means of Savings
Life insurance is a sound method of savings. In all other savings, there is
always temptation to withdraw. However, there are in-built provisions under a life
insurance policy (such as paid-up value, surrender value etc.) which discourage the
person from discontinuing a policy. The contracts of life insurance are of long
duration, which is an element of encouragement to thrift and compulsion for
saving.

c) Prudent Investment
Returns under a life insurance policy are comparatively lower than other
financial instruments in the market. However, in view of its very sound investment
policy and accumulation of a vast life fund, the Security of funds is very high.
Further Liquidity under life insurance policy is also guaranteed due to provisions
of survival benefit, loans, surrender values etc.
(d)

Tax-saving instrument

Premiums under life insurance and annuity policies secure attractive tax benefits.
These get substantial rebates under Income tax, Wealth tax, Gift Tax etc. The
proceeds of life insurance policy are exempt from Income tax and Wealth tax.
(e)

Business Protection

Large numbers of business houses are of proprietary nature. With the untimely
death of proprietor, the business can be wiped out due to debts, un-recovered bills
and inability of heirs to carry on the business. A proper planning with the help of
life insurance can save such business and enhance their goodwill value.
Page | 51

(f)

Best Collateral

No other financial instrument can compete with life insurance as sound collateral.
By going in for life insurance one creates an instant estate, which can be used as
collateral against housing loans and other business loans.
(g) Relieves Anxiety and Promotes Initiative
This is a hidden but very significant benefit of life insurance plan for an individual. A
man is not prone to take risk for security considerations. But once he is assured of basic
minimum security, he is inclined to take risks and launch any entrepreneurial activity.
Life insurance takes care of one of his biggest worries and thus enables him to embark
upon new initiatives.

SBI Life Insurance FAQs:

1.

Q. What are the taxes/cess applicable on insurance premium/ULIP

charges?
A. Charges such as service tax / GST (for J&K residents) /cess will be charged at
the rates notified by the Central or State government on the following:
o

For traditional plans:

Base premium.

Rider premium.

Other charges depending on the features of the product in question.

For ULIPs:

Mortality charges.
Page | 52

Policy administration charges.

Fund management charges.

Discontinuance / Surrender charges.

Partial withdrawal charges.

Other charges depending on the features of the product in question.

2.

Q. What kind of benefits will my dependents / nominees receive on my

death?
A. There are different cases to consider, depending on when the

unfortunate event of your death occurs.

In case death occurs during the policy term, the nominee/s will be paid

Sum Assured, plus bonuses, if any. If the policy incorporates bonuses or

participative profits, bonuses will be payable for the number of years premiums
were paid.
In case death occurs due to accident, the nominee/s will be paid double

the Sum Assured, if the accidental benefit rider was purchased.

If death occurs after the maturity date of the policy, the nominee/s will

not be entitled to any kind of death benefit.

3.

Q. Is it possible to pay premiums online?

A. Yes Log in to the my policy portal, and pick the Pay Premium Online option
under the Transaction menu. Pick the policy youre enrolled under and make the
payment.
4.

Q. What are the other ways to make payments online?

Page | 53

A. Premium payments can be made online through Visa, Master, and Diners &
American Express cards. Net banking customers can also pay online, if the bank is
listed on the site.
5.

Q. Can advance payments be made for premiums?

A. This depends on the frequency of premium payments.

Under the monthly payment frequency mode, advance payments can

be made up to 10 days in advance.
Under any non-monthly payment frequency mode, advance payments

can be made up to 30 days in advance.

6.

Q. What is the procedure to change the address as mentioned in the

policy?
A. To initiate the process of changing the address, a written request needs to be sent
to the Central Processing Centre, or any SBI Life branch. The request can also be
faxed to the insurer.

7.

Q. What is the procedure to change the percentage of allocation or to

switch between funds?
A. To initiate the process of changing the percentage of allocation or to switch
between funds, one must furnish and submit the policy servicing form to any SBI
Life branch.
Page | 54

8.

Q. What is the process to change the nominee named to receive benefits in

my SBI Life insurance policy?
A. Nominees can be changed at any time by submitting the Change of Nomination
form to SBI Life Central Processing Centre, or the closest SBI Life branch office.

9.

Q. What is the grievance redressal procedure for SBI Life insurance

plans?
A. There are 3 levels of grievance redressal :

Level 1: You can call SBI Life and inform them of your issue. If you
dont receive a satisfactory solution.

Level 2: In case your grievance is not satisfactorily resolved in level 1,

you can contact the Head Grievance Redressal Officer Client Relationship.

Level 3: In case the Head Grievance Redressal Officer is unable to

satisfactorily resolve your grievance, you may directly approach the Insurance
Ombudsman

SWOT Analysis

Page | 55

Strength
1. Multi player distribution channel
2. SBI Life has over 7000 on- roll employees and 7500 agents
3. SBI Life Insurance has an authorized capital of Rs.2000 crore (US$405.6
million) and a paid up capital of Rs. 1000 crore (US$ 202.8 million)
4. Strong presence across India

Page | 56

Weakness
1. Managing a huge number of people is a concern
2.Cases of fraud have tarnished image of organization.

Opportunity
1. Growing rural market potential
2. Group Insurance through large employers
3. People willing to invest more to secure their future.
Threats
1. Economic crisis

Page | 57

Branches of SBI have several offices operation in India

GROWTH PLAN OF SBI

Page | 58

SBI's future plan include a fast expansion programme of increasing the present 93
million lines to twice that number by 2009 and some 120 million lines by 2010.
The shift in demand from voice to data domination, and from wire line to wireless,
has revolutionized the very nature of the network. SBI has already set in place several
measures that should enable it to evolve into a fully integrated multi-operator by 2009
and its incumbent status, size, infrastructure and human resource should certainly,
give it a distinct advantage.
Consolidation of the network and maintaining high quality of service comparable to
International standards is the key aim of the Growth Plan. Objective of the plan are:
The bank connection shall be provided on demand and it shall be sustained.

Page | 59

PART-II
CHAPTER 3
STUDY OF THE
RESEARCH PROBLEM

Page | 60

3.1 Statement & Introduction of the research problem

The history of performance appraisal is quite brief. Its roots in the early 20th century.
But this is not very helpful, for the same may be said about almost everything in the
field of modern human resources management. As a distinct and formal management
procedure used in the evaluation of work performance, appraisal really dates
from the time of the Second World War - not more than 60 years ago. Yet in a

Page | 61

broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession.
The performance appraisals can have a huge impact on the future of the employee in
the company. When the feedback is provided correctly and the manager makes a
follow up of all the agreements done during the performance appraisals can work
without any formal documents. As the HRM Function is responsible for the
performance management process, it brings new and better performance appraisal
forms every single year. And the result usually fails every year. The
managers and the employees do not see the benefits of participating in the
performance review process as they take it as an activity driven by Human Resources
for Human Resources.
Management Performance appraisal is a method of evaluating the evaluating the
behavior of employees Performance appraisal or merit rating is one of the oldest and
most universal practices of in the work spot, normally including both the quantitative
and qualitative aspects of job performance. Performance appraisal can be an
effective instrument for helping people grow and develop in organizational setting.
Through a Well-organized appraisal system. An employee can create learning spaces
for himself in an organization.
Effectively practiced and development oriented performance appraisal & Review
system, substantially contribute to the organization health. Organization cannot do
away with PERFORMANCE APPRAISAL. Some form of assessment of
performance on a continuing basis is essential for survival as well as growth of an

Page | 62

organization. If and develop yardsticks to measure it, if you want to improve

performance. The performer has to be able to understand it.
In the business world investment is made in machinery, equipment and services. Quite
naturally time and money is spent ensuring that they provide what their
suppliers claim. In other words, the performance is constantly appraised against
the results expected. When it comes to one of the most expensive resources
companies invest in, namely people, the job appraising performance against results is
often carried out with the same objectivity. Performance Management includes the
performance appraisal process which in turn helps identifying the training needs and
provides a direction for career and succession planning.

What is performance?
Performance is synonymous with behavior; it is what people actually do. Performance
includes those actions that are relevant to the organizations growth and can be
measured in the terms of each individuals proficiency effectiveness
performance refers to the evaluation of results of performance that is beyond the
influence or control of the individual.

How is performance managed?

Good performance of employees creates a culture of excellence, which benefits the
organization in long run. The activity involves the evaluation of jobs and people both
managing gender bias, career planning, and devising method of employee satisfaction
Page | 63

effort are to make and generate individuals aspiration with the objectives of the
organization. Organization has to clear the way of career advancements for talent and
hardworking people. Fear of any kind from the minds of the employees should be
removed so that they give best to their organization. Allow free flow of
information. Communication network should be designed in such a way no one
should be allowed to become a hurdle. This enables the managers to take correct
decisions and that too quickly.

Why Performance Appraisal?

The why of an appraisal is concerned with:
a) Creating and maintaining a satisfactory level of performance of employees in
their present jobs.
b) Highlighting employee needs and opportunities for personal growth and
development.
c) Promoting understanding between the supervisor and his subordinates.
Providing a useful criterion for determining the validity of selection and training
methods and techniques and forming concrete measures for attracting individual of
higher caliber to the enterprise.
Todays working climate demands a great deal of commitment and effort
from employees, who in turn naturally expect a great deal more from their
employers. Performance appraisals designed to maximize effectiveness by
bringing participation to more individual level in that it provides a forum
for consultation about standards of work, potential, aspirations and
Page | 64

concerns. It is an opportunity for employees to have significantly greater influence

upon the quality of their working lives. In these times of emphasis on
quality, there is a better quality goods and services from employees who enjoy
better quality goods and services from their employers. Performance appraisal must
be seen as an intrinsic part of a managers responsibility and not an unwelcome and
time-consuming addition to them. It is about improving performance and ultimate
effectiveness. Performance appraisal is a systematic means for ensuring their manager
and their staff meet regularly to discuss post and present performance issues and to
agree what future is appropriate on both side. This meeting should be based on clear
and mutual understanding of the job in question and the standard and the outcomes,
which are apart of it. In circumstances, employees should be appraised by their
immediate managers on one to one basis. Often the distinction between performance
and appraising is not made. Assessment concerns itself only with the past and the
present. The staff isbeing appraised when they are encouraged to look ahead to
improve effectiveness, utilize strengths, redress weaknesses and examine how
potentials and aspirations should match up. It also be understood that pushing a
previously prepared report and desk cursorily inviting comments, and expecting it to
be neatly signed by the employees is not appraisal
- this is merely a form filling exercise which achieves little in terms of giving
staff any positive guidance and motivation.
Who is being appraised?

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The appraisal can be accomplished by one or more individuals involving a

combination of the immediate supervisor, a higher level manager, a personal manager,
the assesses peers, the assesses himself and the assesses subordinates.
Usually the immediate supervisor must be interested with the task of rating the
assesse because he his most familiar with his work, and because he is also responsible
for recommending or approving personal action based on the performance appraisal.
The staff specialists, i.e. the personal officer also do appraisal.
They may advise the supervisor while evaluating their subordinates stressing the need
for evidence for making specific appraisal judgments and comparing a particular
subordinates evolution with those of others.
The appraisal of an individual may also be done by his peers such appraisal proves
effective in predicting future management success.
This approach has its disadvantage that the individual may rate himself excessively
high then it would be if his superior rated him. Many companies use rating
committees to evaluate employees. These committees consist of supervisors, peers,
and subordinates.
STATEMENT OF THE PROBLEM:
Much of literature dealing with Human Resource Management and its issues
recognize the importance of performance appraisal system which occurs in the
organization. All organization faces the problem of directing the energies of their staff
to the task of achieving business goals and objectives. In doing so, organization need
to devise means to influence and channel the behaviors of their employees so as to
Page | 66

optimize their contributions. Performance appraisals constitute one of the major

management tools employed in this process. The continuous evolution of organization
towards the changes creates a great impact in the life of the business still, the business
leaders are relying on the capacity of the people and their performance towards their
job and roles in the organization. Whether a profitable or non profitable
organization, the people has been essential resources in the organization. Various
strategies had been effectively used for the employee according to their different
needs and areas that needs to sustain. However, there is a little attention given in
enhancing the employee performance appraisal system. The present study was under
taken to clarify certain questions related to the care phase of performance appraisal
through regular assessment of progress toward goals focuses the attention and efforts
of an employee or a team.

PERFORMANCE APPRAISAL PROCESS

1. Establishing Performance Standard
2. Communicate Performance expectations to employees
3. Measure actual performance
4. Compare actual performance with standards
5. Discussion with the employees and identification development programs to
bridge the gap.
6. Initiate action
Page | 67

PERFORMANCE APPRAISAL METHODS

1. Graphic rating scale
2. Paired Comparison
3. Forced choice approach
4.Easy Appraisal
5.3600 appraisal

Graphic Rating Scale: A performance appraisal that rates the degree to which the
employee has achieved various characteristics.
1) The graphic rating scale is the most common type of appraisal used.
2) Various characteristics such as job knowledge or punctuality are rated by the
degree of achievement.
3) The rate usually receives a score of 1 to 5, with 5representing excellent
performance.

Page | 68

4) Some forms allow for additional comments.

Paired-comparison Approach: A performance appraisal that measures the

relative performance of employees in a group.
1)This is a method of performance evaluation that results in a rank ordering of
employees to come up with a best employee.
2)This type of approach measures the relative performance of employees in a group.

Forced-choice Approach: A performance appraisal that presents the appraiser

with sets of statements describing employee behavior; the appraiser must choose
which statement is most characteristic of the employee and which is least
characteristic.

Easy Appraisal: Sometimes the supervisor must write a description of the

employees performance. The easy appraisal is often used along with other types of
appraisals, notably graphic rating scales.

They provide an opportunity for

supervisors to describe aspects of performance not thoroughly covered by an

appraisal questionnaire.

360-degree Performance Appraisal: Evaluating Employees from All

Angles. Traditional performance appraisals, as discussed above, can be both
subjective and simplistic. At times, they can also be deemed to be "political". In an
attempt to improve this methodology, some companies have turned to 360-degree
appraisals. 360 appraisals pool feedback from a department's internal and external
customers to ensure a broader, more accurate perspective of an employee's
performance.
Page | 69

360-degree performance appraisal is an attempt to answer the question: "How can a

supervisor evaluate an employee he or she sees only a few hours each week?"

Benefits of Performance appraisal

For the organization:
The organization comes to know the true position of the employees working
capacities and the problems they face while working in the organization. This
performance appraisal system also acts as a motivating factor for the employees,
which helps the organization to get better results.

For the appraise:

The appraise fells themselves an important part of the organization, they get a chance
to express their views in front of their superiors; they get a platform to express their
ideas. The employee comes to know the truth about:
To what extent they have achieved their objectives.
In what respect their work has been most successful.
Are there any aspects of their work, which they have not completed?

Guidelines for effective performance evaluation interviews...

emphasize positive aspects of employee performance

tell employee that the purpose is to improve performance, not to discipline

Page | 70

conduct the review in private

review the performance formally at least annually (more frequently for those
performing poorly)

make criticisms specific

focus on performance, not personality

stay calm; do not argue

identify specific actions the employee can take to improve performance

emphasize the evaluators willingness to assist the employees efforts to improve

problem

end by stressing positive.

PERFORMANCE APPRAISAL IN INSURANCE SECTOR

Typically, performance appraisal has been limited to a feedback process between
employees and supervisors. However, with the increased focus on teamwork,
employee development and customer service, the emphasis has shifted to employee
feedback from the full circle of source depicted in the diagram.
Research has shown assessment approaches with multiple rating sources provide more
accurate, reliable and credible information. For this reason, the U.S Office of

Page | 71

Personnel Management supports the use of multiple rating sources as an effective

method of assessing performance for formal appraisal and other evaluative and
developmental purposes .The circle , or perhaps more accurately the sphere, of
feedback sources consists of supervisors, peers , subordinates , customers , and ones
self. It is not necessary, or always appropriate, to include all of the feedback
sources in a particular appraisal program. The organizational culture and mission must
be considered, and the purpose of feedback will differ with each source. For example,
subordinate assessments of a supervisors Performance can provide valuable
developmental guidance, peer feedback can be the heart of Excellence in teamwork,
and customer service feedback focuses on the quality of the teams or agencys
results. The objectives of performance appraisal and the particular aspects
of performance that are to be assessed must be established before determining which
sources are appropriate.

SUPERIORS

Evaluations

by superiors

are the

most traditional

source of employee feedback. This form of evaluation includes both the

ratings of individuals by supervisors on elements in an employees
performance plan and the evaluation of programs and team by senior

managers
SELF-ASSESSMENT: This form of performance information is actually
quite common but usually used only as an informal part of supervisoremployee appraisal feedback session. Supervisors frequently open the
discussion with How do you feel you have performed?In a somewhat
more formal approach, supervisors ask employees to identify the key
accomplishments they feel best represent their performance in critical and
non-critical performance elements. In a 360-degree approach, if
Page | 72

self-ratings are going to be included, structured forms and formal

procedures are recommended.

PEERS: With downsizing and reduced hierarchies in organizations,
as well as the increasing use of teams and group accountability, peers are
often the most relevant evaluators of their colleaguesperformance. Peers
have a unique perspective on a co-workers job performance and
employees are generally very receptive to the concept of rating each other.
Peer rating can be used when the employees expertise is known or the
performance and results can be observed. There are both significant
contributions and serious pitfall that must be carefully considered before

including this type of feedback in a multifaceted appraisal program.

SUBORDINATES: An upward-appraisal process or feedback survey
(sometimes referred to as SAM, for subordinates Appraising
Managers) is among the most significant and yet controversial
features of a full circle performance evaluation program. Both
managers being appraised and their own superiors agree that
subordinates have a unique, often essential, perspective. The
subordinate ratings provide particularly valuable data on
performance elements concerning managerial and supervisory

behavior.
CUSTOMERS : Executive Order 12862, Setting customer Standards,
requires agencies to survey internal and external customers, publish customer
service standards , and measure agency performance against these standards .
Internal customers are defined as users of products or services, supplied by
another employee or group within the agency or organization .

Page | 73

BASIC

PURPOSE :Effective

performance

appraisal

systems

contains two basic systems operating in conjunction: an evaluation

system and feedback system.The main aim of the evaluation system
is to identify the Performance gap(if any). This gap is the shortfall that
occurs when performance does not meet the standard set by the organization
as acceptable. The main aim of the feedback system is to inform the employee
about the quality of his or her performance. (However, the information flow is
not exclusively one way. The appraiser also receives feedback from the
employee about job problems, etc.) One of the best ways to appreciate the
purposes of performance appraisal is to look at it from the different viewpoints

of the main stakeholders: the employee and the organization.

EMPLOYEE VIEWPOINT From the employee viewpoint, the purpose

of performance appraisal is four-fold

:(1) Tell me what you want me to do
(2) Tell me how well I have done it
(3) Help me improve my performance
(4) Reward me for doing well
ORGANIZATIONAL VIEWPOINT: From the organization's viewpoint, one of
the most important reasons for having a system of performance appraisal is to
establish and uphold the principle of accountability. Fordecades it has known to
researchers that one of the chief causes of

organizational failure is "non-

alignment of responsibility and accountability." Non-alignment occurs where

employees are given responsibility and duties, but are not held accountable for the
way in which those responsibilities and duties are performed. What typically
happens is that several individuals or work units appear to have overlapping roles.
The overlap allows - indeed actively encourages - each individual or business unit.

Page | 74

3.2 Statement of the research objective

To study the performance appraisal method in SBI.

To study the process involved in performance appraisal.
To know the Global trends of performance appraisal.
To find out the frequency of performance appraisal in SBI Life Insurance.
To know the problem associated with performance appraisal.

3.3 Scope of Study: To help each employee understand more about their role and become
clear about their functions
To be instrumental in helping employees to better understand their
strengths and weaknesses with respect to their role and functions in the
organization;
To help in identifying the developmental needs of employees, given their role
and function
To increase the mutuality between the employees and their supervisors so that
every employee feels happy to work with the supervisors and thereby
contributes maximum to the organization;
To act as a mechanism for increasing communication between employees and
their supervisors. In this way each employee gets to know about their
expectation of their superior, and each superior also gets to know the
difficulties of their subordinates and can try to solve them. Together, they can
thus better accomplish their tasks;
To provide an opportunity to each employee for self reflection and individual
goal-setting, so that individually planned and monitored development takes
place;

Page | 75

 To help employees internalize the culture, norms and values of the

organization, thus developing an identity and commitment throughout the
organization;
To help prepare employees for higher responsibilities in the future by
continuously reinforcing the development of the behavior and qualities
required for higher-level positions in the organization;
To be instrumental in creating positive and healthy climate in the organization
that drives employees to give their best while enjoying doing so; and
To assist in a variety of personnel decision by periodically generating data
regarding each employee.

3.4 Limitations of the research

1. Possibility of error in data collection because many of respondents may have
2.
3.
4.
5.

not given actual answers of questionnaire.

The study is limited due to constraint of time and information available.
The study is limited to policy holders of State Bank of India Life Insurance.
The study is limited to Kanpur only.
Some respondents hesitated to give the actual situation; they feared that management
would take any action against them.

3.5 Research design and methodology

RESEARCH PROBLEM
Project report on analysis on implementation of performance appraisal on employees
at SBI Life Insurance.
Page | 76

DATA COLLECTION METHODFor achieving the specific objectives of this study, data were gathered from both
primary and secondary sources.
Primary Sources
Direct conversation with the respective officers of the Departments.
Face to face conversation with the employees.
Employees opinion collected through Questions.
Observation of HR activities.

Secondary Sources:
Various records of the Company.
Different Types of system information.
Website of SBI LIFE INSURANCE.
Different newsletter.
Personal files of employees.

RESEARCH DESIGN:
After formulating the problem the research design has to be Prepared.
Preparation of research design involves selection of means of Obtaining information,
time available for research and selection of Method of tabulation & presentation of
data.

Page | 77

Descriptive research and qualitative type of survey are conducted. The

descriptive result is description of the state of affairs as it exists at present such a
result we were required in analytical form. I have obtained Information by the HOD
of the HR Department and some of the Employees of the organization & also from
annual reports of company, Newspapers, magazines and websites.
SAMPLING DESIGN:
Sampling is the process of selecting a sufficient number of elements from the
population, so that a study of the sample and an understanding of its properties or
characteristics would make it possible for us to generalize such properties or
characteristics to the population elements.

Descriptive research design:

It provides description of something. It is undertaken in order to ascertain and
describe the characteristics of variables of interest in a particular situation. It is a
preplanned and structure design .
SAMPLING TECHNIQUES:
The sampling technique used for carrying out this study is RANDOM Sampling
technique.
SIMPLE RANDOM SAMPLING :{ meaning]:
Simple Random Sampling is the foundation of probability sampling. Its a special
case of probability sampling in which every unit in the population has an equal chance
of being included in a sample. Simple random sampling also makes the selection of
every possible combination of the desired number of units like sampling may be done
with or without replacement .
Page | 78

SAMPLE SIZE:
A Sample of 50 was taken from the employees out of whom data is collected . A finite
subset of a population is a sample and the number of units in a sample is called its
sample size.

CHAPTER 4
DATA ANALYSIS &
INTERPRITATION

Page | 79

4.1 Analysis and interpretation of the data Collected with relevant

tables and graphs.
ANALYTICAL TOOLS USED
The term analysis refers to the computation of certain measures along with searching
for pattern of relationship that exists among data group. Analysis is essential for a
scientific study and for ensuring that we have all relevant data for making
contemplated comparison. Therefore, I have used Tabulation, Graphs &charts in
my project.

Page | 80

DATA ANALYSIS
Table 1
Are you aware of the objective of the performance appraisal system?

OPTIONS

NO
OF
PERCENTAGE
RESPONDENT(SAMPLE
SIZE 50)

VERY MUCH
42

84%

14%

2%

SOME WHAT
DONT KNOW

Page | 81

objective of performance appraisal

90
80
70
60
50
84

40
30
20
10

14
2

0
very much

some what

don't know

No. of respondents(employees)

INTERPRETATION- 84% Employees are aware of the object of the

performance appraisal system.

Table 2
Performance appraisal helps the organization in achieving goal.

OPTIONS

NOS OF RESPONDENT
(Sample size 50)

PERCENTAGE

YES

38

76%

NO

10

20%

DONT KNOW

4%

Page | 82

how performance appraisal helps in achieving goals

80
70
60
50
40

76

30
20
10

20
4

0
yes

no

don't know

No. of respondents(employees)

INTERPRETATION- 76% Employees say yes that performance

appraisal helps the organization in achieving goal.

Table3
Hold meeting in the beginning of the year to explain & clarify activity task &
goals to be achieved.

OPTIONS

NOS
RESPONDENT(Sample
50)

OF PERCENTAGE
size

Page | 83

YES

39

78%

NO

11

22%

Explaining Task And Activity

90
80
70
60
50
40

78

30
20
22

10
0
yes

no

No. of respondents(employees)

INTERPRETATION-:78% Employees say that yes organized meetings

helps goal and task. While the other 22% employees that are not very much
helpful.

Table4
1

Organization has to make a fixed duration for performance appraisal.

Page | 84

OPTIONS

NOS OF
PERCENTAGE
RESPONDENT (Sample size
50)

YES

40

80%

NO

10

20%

Duration for Performance Appraisal

90
80
70
60
50
40

80

30
20
10

20

0
yes

no

INTERPRETATION-:80% Employees agree with that is organization

should have to make a fixed duration for performance appraisal. While the
other 20% employees do not agree with this statement.

Table5
Satisfied for point allocation on the basis of SBIs & managerial dimension.

Page | 85

NOS
OF
RESPONDENT(Sample PERCENTAGE
size 50)

OPTIONS

FULLY SATISFIED 20

40%

SATISFIED

26

52%

DISSATISFIED

4%

UNCERTAIN

4%

60
50
40
30
52
20

40

10
0
fully satisfied

satisfied

dissatisfied

uncertain

INTERPRETATION-:40% Employees are fully satisfied for point

allocation on the basis of SBIs and managerial dimension.

Table6
Performance appraisal affects the working efficiency of employees.
Page | 86

OPTIONS

NOS
OF
PERCENTAGE
RESPONDENT(Sample
size 50)

YES

42

84%

NO

16%

90
80
70
60
50
40

84

30
20
10

16

0
yes

no

INTERPRETATION-:84% Employees say that yes performance

appraisal system affects the working efficiency of employee. While the other
16% employees do not agree with this statement.

Table7
Page | 87

Appraisal system is able to develop high result orientation approach.

OPTIONS

NOS
OF
RESPONDENT(Sampl PERCENTAGE
e size 50)

YES

47

94%

NO

6%

94

100
90
80
70
60
50
40
30
20
10

0
yes

no

INTERPRETATION-:94% Employees say that yes the appraisal system is

able to develop high result orientation approach. While the other 6% employees do
not agree with us.

Page | 88

Table8
The systems will also contribution in potential appraisal.

NOS
OF
RESPONDENT(Sampl PERCENTAGE
e size 50)
36
72%

OPTIONS

YES
10

20%

8%

NO
DONT KNOW

72

80
70
60
50
40
30

20

20
10

0
yes
no
don't know

INTERPRETATION-:72% employees think that the systems will also

Contribution in potential appraisal.

Page | 89

Table9
Promotion process in the organization is based on

OPTIONS

NOS
OF
RESPONDENT(Sampl PERCENTAGE
e size 50)

PERFORMANCE

4%

EXPERIENCE

12%

BOTH

42

84%

90
84

80
70
60
50
40
30
20
10

12

0
Performance
experience
both

INTERPRETATION-:4% employees say that promotion says that

process in the organization is based on performance, 12% employees say that
based on experience and 84% say both.

Page | 90

Table 10
The present performance appraisal system is transparent & Free from bias.

OPTIONS

NOS
OF
RESPONDENT(Sample PERCENTAGE
size 50)

YES

42

84%

NO

16%

90

84

80
70
60
50
40
30
20

16

10
0
YES

NO

Page | 91

INTERPRETATION-:84% Employees agree with this statement that the

present performance appraisal system is transparent and free from bias.

Table11
Satisfied with the current performance appraisal system.

OPTIONS

NOS
OF PERCENTAGE
RESPONDENT
(Sample size 50)

HIGHLY SATISFIED

27

54%

SATISFIED

18

36%

DISSATISFIED

2%

JUST SATISFIED

8%

Page | 92

60

54

50
40

36

30
20
10
2

0
Highly satisfied

Satisfied

Dissatisfied

Just satisfied

INTERPRETATION-:54% Employees are highly satisfied with the current

Performance appraisal system. While 36% employees are satisfied with the current
performance appraisal system.

CHAPTER 5
Page | 93

SUMMARY
AND
CONCLUSION

5.1 Summary of learning experience/ Findings

SUMMARY:

Employees are highly satisfied with the performance appraisal system.

Performance appraisal system helps the organization to achieve its goals and

objectives effectively and efficiently.

Performance appraisal system affected the working efficiency of the
employees as most of the employees ( respondent) have increased their
efficiency.

Page | 94

Transparency in Performance appraisal system gained the trust in relation of

employee and employer.

FINDING :
The finding reveals that there is 84%respondents are aware of performance

appraisal system
The finding reveals that there is 76% of employees who get helped by

performance appraisal and 20% who dont got helped.

The finding reveals that there is only 22% respondents who dont get any
clarification about the activity, task, and goal to be achieved by them in there

organization and 78% are well aware of it.

The finding reveals that for 80% respondent, organization has to make fixed

duration for performance appraisal.

The finding reveals that there is 84% respondent get affected by performance
appraisal system this shows in SBI Life Insurance, performance appraisal

system seems to be effective for the employer as well as organization.

The finding reveals that performance appraisal system has developed 94% of

the employees of organization.

Performance appraisal system increases the potential appraisal of 72% of
employees.
The finding reveals that 84% promotion process is based on both experience
and performance.
The finding reveals that 16% performance appraisal system is not transparent
and free from biasness at 84% and vice versa.
The finding reveals that 54% employees or respondent are highly satisfied of
performance appraisal system.
SUGGESTIONS/ RECOMMENDATIONS:

Page | 95

After having analyzed the data, it was observed that practically there was no
appraisal in the organization. To be an effective tool, it has to be on the continuous
basis. This is the thing that has been mentioned time and again in the report, as, in
the absence of continuity, it becomes a redundant exercise. Before actually
deciding drafting what should be the kind of appraisal the following things should
be taken care of:
1. The very concept of performance appraisal should be marketed throughout the
organization. Unless this is done, people would not accept it, be it how
important to the organization.
2.

To market such a concept, it should not start at bottom, instead it should be

started by the initiative of the top management. This would help in percolating
down the concept to the advantage of all, which includes the top management
as well as those below them. This means that the top management has to take a
welcoming and positive approach towards the change that is intended to be
brought.
3.

Further, at the time of confirmation also, the appraisal form should not lead
to duplication of any information. Instead, detailed appraisal of the
employees work must be done which must incorporates both the work
related as well as the other personal attributes that are important for work
performance.

4.

It should be noted that the appraisal form for each job position should be
different as each job has different knowledge and skill requirements. There

Page | 96

should not be a common appraisal form for every job position in the
organization.
5.

The job and role expected from the employees should be decided well in
advance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity

to a marked extent, objective methods should be employed having
quantifiable data.
7.

The time period for conducting the appraisal should be revised, so that the
exercise becomes a continuous phenomenon.

8.

Transparency into the system should be ensured through the discussion

about the employees performance with the employee concerned and trying
to find out the grey areas so that training can be implemented to improve on
that.
Ideally in the present day scenario, appraisal should be done, taking the

views of all the concerned parties who have some bearing on the employee. But,
since a change in the system is required, it cannot be a drastic one. It ought to be
gradual and a change in the mindset of both the employees and the head is
required.

5.2 Conclusion and recommendations

Performance appraisal is the process of reviewing employee
performance vis--vis the set expectations in a realistic manner, documenting the
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review, and delivering the review verbally in a face-to-face meeting, to raise

performance standards year over year through honest and constructive feedback.
In the process management expects to reinforce the employees strengths, identify
improvement areas so that one can work on them and also set stretched goals for
the coming year.
Effective performance management requires a good deal of face-to-face
supervisor-employee interaction. By knowing the subordinates, a supervisor can
steer them onto a path of greater productivity and optimized output. It is one of the
most significant and indispensable tool for an organization as it helps in getting to
know the people who work for them. provides information, which helps in taking
important decisions for the development of an individual and the organization.

BIBILOGRAPHY

Books
Organizational Behavior by Steve Robbins.
The Art of HRD, Reward Management, Volume 9 by Michael Armstrong and
Helen Murlis .
Human Resource - V.S.P Rao
Research Methodology- C. R. Kothari

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Websites

www.wikipedia.org
www.performance-appraisal.com/intro.htm
www.google.com
www.scribed.com
www.ask.com
www.wikipedia.com
www.hrgroup.com

APPENDICES
Questionnaire on Performance Appraisal
Dear Sir/Madam,

I am Student, Doing M.B.A from Pranveer Singh Institute of Technology, Kanpur. As

a part of the curriculum; I am conducting a survey on ANALYSIS ON
PERFORMANCE APPRAISAL IN SBI LIFE INSURANCE. I request you to kindly

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give me your valuable time to fill this questionnaire. I assure you that data provided
by you will kept confidential
NAME:
DESIGNATION:
ADDRESS:

...

AGE:
GENDER: ....
MALE

FEMALE

CONTACT NO. (If any): ...

1. When performance appraisal is made in the organization?

Monthly
Yearly

Quarterly
Others

2. What is the objective of performance appraisal?

Promotion

Assessing training and development

need
Pay rise

Others

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3. Is there any conflict arise between employees after performance appraisal is made?
Frequently

Often

Sometimes

Never

4. Are there any job expectations established before performance appraisal?

Frequently

Often

Sometimes

Never

5. Who rates the performances?

Superiors

Subordinates

Clients

All

6. On what basis performance appraisal is made?

Total output

Behavioral efficiency

Both

7. Is 360 degree appraisal process undertaken in the organization?

Yes

No

If yes, from when?

Recently
Less than one year

More than one year

Since the inception of 360 degree

process

8. Does any change arise after appraising the performances of employees?

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Yes

No

If yes, how is it?

Positive

Negative

Both

9. Does performance appraisal process help to raise organizations total output?

Yes

No

10. Do you feel performance appraisal process is sufficient in appraising the

performances of employees or you need some alternatives to it?
Sufficient

Alternative

If you need some alternatives, what kind of alternative should be adopted? Give your
comments.

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