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Introduction
1.1 Introduction of The Insurance Industry
Overview
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss
and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely
a development of the recent past, particularly after the industrial era – past few
centuries – yet its beginnings date back almost 6000 years.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose
to 176 companies with total business-in-force as Rs.298 crore in 1938. The
Insurance Act 1938 was the first legislation governing not only life insurance but
also non-life insurance to provide strict state control over insurance business.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
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LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Together
with banking services, it adds about 7 per cent to the country’s GDP. Gross
premium collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international
standards. And this part of the population is also subject to weak social security
and pension systems with hardly any old age income security. This itself is an
indicator that growth potential for the insurance sector is immense.
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The Insurance sector, to some extent, can enable investments in infrastructure
development to sustain economic growth of the country.
India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in
the Indian insurance sector reveals the 360 degree turn witnessed over a period of
almost two centuries.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the
passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
The opening up of the sector is likely to lead to greater spread and deepening of
insurance in India and this may also include restructuring and revitalizing of the
public sector companies. In the private sector 14 life insurance and 8 general
insurance companies have been registered. A host of private Insurance companies
operating in both life and non-life segments have started selling their insurance
policies..
The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of
life insurance products was 19 percent of the total 400 million of the insurable
population. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under- insured with no flexibility
or transparency in the products. With the entry of the private insurers the rules of
the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9
percent of the market in terms of premium income. The new business premiums of
the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.
Innovative products, smart marketing and aggressive distribution. That's the triple
whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who have
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always seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. Buoyed by their quicker than expected success,
nearly all private insurers are fast- forwarding the second phase of their expansion
plans.
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Protection of the interests of policyholders:
IRDA has the responsibility of protecting the interest of insurance policyholders.
Towards achieving this objective, the Authority has taken the following steps:
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the
insurance contract
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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it
has diversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the
financial year ended March 31, 2005, the company garnered Rs 1584 crore of new
business premium for a total sum assured of Rs 13,780 crore and wrote nearly
615,000 policies.
The Company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind
the brand. The Company aims to achieve this by striving to provide world class
service levels through constant innovation in products, distribution channels and
technology based delivery. The Company has already taken significant steps to
achieve this goal.
India's Number One private life insurer, ICICI Prudential Life Insurance Company
is a joint venture between ICICI Bank-one of India's foremost financial services
companies-and Prudential plc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
ICICI Prudential was the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a
row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer,
by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted
Brands'. As we grow our distribution, product range and customer base, we
continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
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services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA).
ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the first quarter ended
June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group new
business premiums and wrote over 450,000 retail policies in the period. The
company has assets held to the tune of over Rs. 18,400 crore.
ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)
rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to
meet its obligations to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 680 branches and
over 235,000 advisors.
The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki
District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal
Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks
(RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia
Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban
Cooperative Bank Limited
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 150 cities and towns in India,
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stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to
Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with
ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,
and some co-operative banks, as well as over 300 corporate agents and brokers. It
has also tied up with NGOs, MFIs and corporates for the distribution of rural
policies.
ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors
to interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers
RegisteredOffice :
Regional Office :
8th floor EROS Coorporate Tower,Nehru place,
New Delhi-110011.Tel:46554405
Delhi office :
3rd floor
Videocon Towers
E-1, Rani Jhansi Road
New Delhi - 110055. Tel: 601 3232
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2. INTRODUCTION OF HUMAN RESOURCES
MANAGEMENT
The HRM function and HRD profession have undergone tremendous change over
the past 20-30 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people.
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More recently, organizations consider the "HR Department" as playing a major
role in staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling manner.
Recently, the phrase "talent management" is being used to refer the activities to
attract, develop and retain employees. Some people and organizations use the
phrase to refer especially to talented and/or high-potential employees. The phrase
often is used interchangeably with the field of Human Resource Management --
although as the field of talent management matures, it's very likely there will be an
increasing number of people who will strongly disagree about the interchange of
these fields. For now, this Library uses the phrases interchangeably.
Features
Organizational management
Personnel administration
Manpower management
Industrial management
But these traditional expressions are becoming less common for the theoretical
discipline. Sometimes even employee and industrial relations are confusingly listed
as synonyms, although these normally refer to the relationship between
management and workers and the behavior of workers in companies.
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The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as
basic business resources, such as trucks and filing cabinets. The field takes a
positive view of workers, assuming that virtually all wish to contribute to the
enterprise productively, and that the main obstacles to their endeavors are lack of
knowledge, insufficient training, and failures of process.
Synonyms such as personnel management are often used in a more restricted sense
to describe activities that are necessary in the recruiting of a workforce, providing
its members with payroll and benefits, and administrating their work-life needs. So
if we move to actual definitions, Torrington and Hall (1987) define personnel
management as being:
“a series of activities which: first enable working people and their employing
organisations to agree about the objectives and nature of their working
relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).
Academic theory
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The basic premise of the academic theory of HRM is that humans are not
machines, therefore we need to have an interdisciplinary examination of people in
the workplace. Fields such as psychology, industrial engineering, industrial,
Legal/Paralegal Studies and organizational psychology, industrial relations,
sociology, and critical theories: postmodernism, post-structuralism play a major
role. Many colleges and universities offer bachelor and master degrees in Human
Resources Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich,
defines 4 fields for the HRM function:[6]
Change management
Employee champion
Administration
However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive than
strategically proactive partners for the top management. In addition, HR
organizations also have the difficulty in proving how their activities and processes
add value to the company. Only in the recent years HR scholars and HR
professionals are focusing to develop models that can measure if HR adds value.
Business practice
Workforce planning
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Skills management
Personnel administration
Time management
Performance appraisal
Cornell University's School of Industrial and Labor Relations was the world's first
school for college-level study in HRM
The sort of careers available in HRM are varied. There are generalist HRM jobs
such as human resource assistant. There are careers involved with employment,
recruitment and placement and these are usually conducted by interviewers, EEO
(Equal Employment Opportunity) specialists or college recruiters. Training and
development specialism is often conducted by trainers and orientation specialists.
Compensation and benefits tasks are handled by compensation analysts, salary
administrators, and benefits administrators.
Several universities offer programs of study pertaining to HRM and broader fields.
Cornell University created the world's first school for college-level study in HRM
(ILR School).[9] University of Illinois at Urbana-Champaign also now has a school
dedicated to the study of HRM, while several business schools also house a center
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or department dedicated to such studies; e.g., University of Minnesota, Michigan
State University, Ohio State University, and Purdue University.
Professional organizations
Functions
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The HRM function and HRD profession have undergone tremendous change over
the past 20–30 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people.
More recently, organizations consider the "HR Department" as playing a major
role in staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling manner.
3. INTRODUCTION OF RECRUITEMENT
Recruitment refers to the process of attracting, screening, and selecting qualified
people for a job at an organization or firm. For some components of the
recruitment process, mid- and large-size organizations often retain professional
recruiters or outsource some of the process to recruitment agencies.
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The recruitment industry has five main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, niche agencies which specialize in a particular area of
staffing and in-house recruitment. The stages in recruitment include sourcing
candidates by advertising or other methods, and screening and selecting potential
candidates using tests or interviews.
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It is the process to discover sources of manpower to meet the requirement
of staffing schedule and to employ effective
measures for attracting that manpower in adequate numbers to facilitate
effective selection of an efficient working force.
PLANNED
i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization
can predict by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
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organisation.
Recruitment is the process which links the employers with the employees.
Help reduce the probability that job applicants once recruited and selected
will leave the organization only after a short period of time.
4. RECRUITMENT PROCESS
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
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competitive strength and the recruitment strategic advantage for the
organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and
requires many resources and time. A general recruitment process is as follows:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required
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1. Identify vacancy
5. Short-listing
6. Arrange interviews
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Maven follows a systematic and rigorous procedure for recruitments, in sync with
the industry practices. Realizing the crucial importance of successful recruitment,
we pursue an organized, efficient and practical methodology.
After understanding the roles and responsibilities of the prospective candidate, the
search process starts. A long list of matching resumes are reviewed and selected.
Further short listing of the candidates leaves behind a list of most potential and
appropriate candidates, who meet the desired requirements of the client.
These short listed candidates are contacted and a pre-interview check is conducted.
Meanwhile, the client is informed about the short listed candidates.
Next, our client interviews the most eligible and short listed candidates. Finally,
our clients then inform us about the selected and successful candidates, who are
updated about the positive feedback by us while auto-mailers are sent out to the
rest of the unsuccessful applicants. Once the salary negotiations are over we assist
you with the employee management.
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Recruitment refers to the process of screening, and selecting qualified people for a
job at an organization or firm, or for a vacancy in a volunteer-based some
components of the recruitment process, mid- and large-size organizations and
companies often retain professional recruiters or outsource some of the process to
recruitment agencies. External recruitment is the process of attracting and selecting
employees from outside the organization.
The recruitment and selection is the major function of the human resource
department and recruitment process is the first step towards creating the
competitive strength and the strategic advantage for the organizations. Recruitment
process involves a systematic procedure from sourcing the candidates to arranging
and conducting the interviews and requires many resources and time. A general
recruitment process is as follows:
These contain:
-- Posts to be filled
-- Number of persons
-- Duties to be performed
-- Qualifications required
• Preparing the job description and person specification.
• Locating and developing the sources of required number and type of employees
(Advertising etc).
• Short-listing and identifying the prospective employee with required
characteristics.
• Arranging the interviews with the selected candidates.
• Conducting the interview and decision making
Recruitment Process
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing
6. Arrange interviews
7. Conducting interview and decision making
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The recruitment process is immediately followed by the selection process i.e. the
final interviews and the decision making, conveying the decision and the
appointment formalities.
5. SOURCES OF RECRUITMENTS
1. Internal Sources
2. External Sources
Some Internal Sources Of Recruitments are given below:
1. TRANSFERS
The employees are transferred from one department to another according
to their efficiency and experience.
2. PROMOTIONS
The employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience.
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the organisational culture and the policies and procedures.
a. Friends and Family- Many experts will advise against hiring friends and
family. In my opinion friends and family should be treated as any other
potential employee with no favoritism. They should be subject to the same
hiring process as other potential employees to ensure they have the
qualifications for the job. Working with friends or family can be a
disadvantage if they feel they can slack off since they know you. On the
other hand it can be an advantage because since they know you they may be
more motivated to help you succeed.
b. Referrals- You can get referals from friends, family, coworkers and
acquaintances. Your bound to know somebody who needs a job.
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5.2 EXTERNAL SOURCES OF RECRUITMENT
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment. The main advantage of this method is that it
has a wide reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges
etc. are a good source of recruiting well qualified executives, engineers,
medical staff etc. They provide facilities for campus interviews and
placements. This source is known as Campus Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on
behalf of client companies by charging a fee. These
agencies are particularly suitable for recruitment of executives and
specialists. It is also known as RPO (Recruitment Process Outsourcing)
4. EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout the
country. These exchanges provide job information to job seekers and
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help employers in identifying suitable candidates.
5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain
close contacts with the sources of such workers. This source is used to
recruit labour for construction jobs.
6. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies on their
own. Such callers are considered nuisance to the daily work routine of
the enterprise. But can help in creating the talent pool or the database
of the probable candidates for the organisation.
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6. FACTORS AFFECTING RECRUITMENT
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6.1 INTERNAL FACTORS AFFECTING RECRUITMENT
1. RECRUITMENT POLICY
The recruitment policy of an organisation specifies the objectives of
recruitment and provides a framework for implementation of recruitment
programme. It may involve organizational system to be developed for
implementing recruitment programmes and procedures by filling up vacancies
with best qualified people.
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FACTORS AFFECTING RECRUITMENT POLICY
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.
4. COST
Recruitment incur cost to the employer, therefore, organizations try to
employ that source of recruitment which will bear a lower cost of
recruitment to the organization for each candidate.
The external factors which affecting recruitment are the forces which cannot
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be controlled by the organisation. The major external forces are:
2. LABOUR MARKET
Employment conditions in the community where the organization is located
will
influence the recruiting efforts of the organization. If there is surplus of
manpower at the time of recruitment, even informal attempts at the time of
recruiting like notice boards display of the requisition or announcement in
the meeting etc will attract more than enough applicants.
3. IMAGE / GOODWILL
Image of the employer can work as a potential constraint for recruitment.
An organization with positive image and goodwill as an employer finds it
easier to attract and retain employees than an organization with negative
image. Image of a company is based on what organization does and
affected by industry. For example finance was taken up by fresher MBA’s
when many finance companies were coming up.
5. UNEMPLOYMENT RATE
One of the factors that influence the availability of applicants is the
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growth of the economy (whether economy is growing or not and its
rate). When the company is not creating new jobs, there is often
oversupply of qualified labour which in turn leads to unemployment.
6. COMPETITORS
The recruitment policies of the competitors also effect the
recruitment function of the organisations. To face the competition,
many a times the organisations have to change their recruitment
policies according to the policies being followed by the competitors.
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best talent pool for the selection of the right candidate at the right place
quickly. Creating a suitable recruitment policy is the first step in the
efficient hiring process. A clear and concise recruitment policy helps ensure a
sound recruitment process.
Unbiased policy.
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Weightage during selection given to factors that suit organization
needs.
Organizational objectives
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The following trends are being seen in recruitment:
8.1 OUTSOURCING
In India, the HR processes are being outsourced from more than a decade
now. A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organisation by the initial screening of the
candidates according to the needs of the organisation and creating a suitable
pool of talent for the final selection by the organisation. Outsourcing firms
develop their human resource pool by employing people for them and make
available personnel to various companies as per their needs. In turn, the
outsourcing firms or the intermediaries charge the organisations for their
services. Recruitment Process Outsourcing is a form of business process
outsourcing (BPO) where an employer outsources or transfers all or part of its
recruitment activities to an external service provider.
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results."
History
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recruiting--a significant cost of HR--should also be considered for
outsourcing. In the early 2000's more companies began considering the
outsourcing of recruitment for major portions of their recruiting need.
There have been fundamental changes in the US labor market that serve to
reinforce the use of RPO as well. The labor market has become increasingly
dynamic: workers today change employers more often than in previous
generations. De-regulated labor markets have also created a shift towards
contract and part-time labor and shorter work tenures. These trends increase
recruitment activity and may encourage the use of RPO. It should also be
noted that even in slower economic times or higher unemployment, RPO is
still considered by companies to assist in an increasing need to screen through
a larger candidate pool.
Benefits
RPO's promoters claim that the solution offers improvement in quality, cost,
service and speed.
RPO providers claim that leveraging economies of scale enables them to offer
recruitment processes at lower cost while economies of scope allow them to
operate as high-quality specialists. Those economies of scale and scope arise
from a larger staff of recruiters, databases of candidate resumes, and
investment in recruitment tools and networks.
RPO solutions are also claimed to change fixed investment costs into variable
costs that vary with fluctuation in recruitment activity. Companies may pay by
transaction rather than by staff member, thus avoiding under-utilization or
forcing costly layoffs of recruitment staff when activity is low.
Problems
As with any program, a company must manage its RPO activities. A company
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must provide initial direction and continued monitoring to assure the desired
results. Overall, providing guidance to external activities can present a
significant management challenge. Outsourcing of company processes may
fail or prove a poor organizational fit. Improperly implemented RPO could
reduce the effectiveness of recruitment.
The costs charged for outsourced recruitment transactions may total more than
the cost of the internal recruitment department.
RPO service providers may fail to provide the quality or volume of staff
required by their customers.
RPO may not resolve difficulties that organizations have hiring staff when the
organization is perceived negatively by potential employees. This will instead
require improved branding and an adjustment of image. The perception is that
very few RPOs can successfully integrate their client's brand and therefore do
not represent their client's brand as well as a retained search or internal
recruiting resource may drive brand representation and or marketing.
Further, most RPOs perform their staffing functions and service offsite,
further disconnecting the client's growth & recruiting strategy from the actual
workforce within the client company. This is important because during a
period of rapid recruitment growth, one of the many positive effects that a
company typically enjoys is an increase in the workforce wellness or an
overall workforce positivity of sentiment of optimism that comes with
personnel additions... this may be lessened with an offsite recruiting function.
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Advantages of outsourcing are:
8.2 POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being
followed by the organisations today. Poaching means employing a
competent and experienced person already working with another reputed
company in the same or different industry; the organisation might be a
competitor in the industry. A company can attract talent from another firm
by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidate. But it is seen as an unethical
practice and not openly talked about. Indian software and the retail sector
are the sectors facing the most severe brunt of poaching today. It has
become a challenge for human resource managers to face and tackle
poaching, as it weakens the competitive strength of the firm.
8.3E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E-
recruitment is the use of technology to assist the recruitment process.
They advertise job vacancies through worldwide web. The job seekers
send their applications or curriculum vitae i.e. CV through e mail using
the Internet. Alternatively job seekers place their CV’s in worldwide web,
which can be drawn by prospective employees depending upon their
requirements.
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Advantages of recruitment are:
o Low cost.
o No intermediaries
8.4 Job portals – i.e. posting the position with the job description and the
job specification on the job portal and also searching for the suitable resumes
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posted on the site corresponding to the opening in the organisation.
8.5 Resume Scanners: Resume scanner is one major benefit provided by the
job portals to the organisations. It enables the employees to screen and filter
the resumes through pre-defined criteria’s and requirements (skills,
qualifications, experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes to the
employees facilitating the just-in-time hiring by the organisations. Also, the
jobs can be posted on the site almost immediately and is also cheaper than
advertising in the employment newspapers. Sometimes companies can get
valuable references through the “passers-by” applicants. Online recruitment
helps the organisations to automate the recruitment process, save their time
and costs on recruitments.
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9. TYPES OF JOB SEEKERS
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Recruitment management system is the comprehensive tool to manage the
entire recruitment processes of an organisation. It is one of the technological
tools facilitated by the information management systems to the HR of
organisations. Just like performance management, payroll and other systems,
Recruitment management system helps to contour the recruitment processes
and effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management
system are explained below:
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system tool which helps to sane the time and costs of the recruiters and
improving the recruitment processes.
Before making any investment, every organisation would want to evaluate
the investment by answering the following questions in quantifiable terms:
What are the costs and the corresponding and related risks on the
investment?
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to judge the success of their recruitment processes. Instead, recruitment is
one activity that continues in an organisation without anyone ever realizing
its worth or measuring its impact on the organisation’s business.
With the increasing strategic focus on the human resources, more and more
organisations are adopting one or the other way for calculating the ROI on
its recruitments. Many organisations are examining their HR functions and
processes and are trying to quantify their results and returns.
Developing methods and ways measuring the results like the time – to –
hire, cost-Per-Hire and effectiveness of the recruitment source etc.
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Assessing the ROI on recruitments can assist an organisation to strengthen its
HR processes, improving its recruitment function and to build a strategic
human resource advantage for the organisation.
Recruitment is of the most crucial roles of the human resource
professionals. The level of performance of and organisation depends on the
effectiveness of its recruitment function. Organisations have developed and
follow recruitment strategies to hire the best talent for their organisation and
to utilize their resources optimally. A successful recruitment strategy
should be well planned and practical to attract more and good talent to apply
in the organisation.
For formulating an effective and successful recruitment strategy, the strategy
should cover the following elements:
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1. Identifying and prioritizing jobs
recruitment keep arising at various levels in every organisation; it is
almost a never-ending process. It is impossible to fill all the positions
immediately. Therefore, there is a need to identify the positions
requiring immediate attention and action. To maintain the quality of
the recruitment activities, it is useful to prioritize the vacancies
whether to focus on all vacancies equally or focusing on key jobs first.
2. Candidates to target
The recruitment process can be effective only if the organisation
completely understands the requirements of the type of candidates that
are required and will be beneficial for the organisation. This covers the
following parameters as well:
3. Sources of recruitment
The strategy should define various sources (external and internal) of
recruitment. Which are the sources to be used and focused for the
recruitment purposes for various positions. Employee referral is one
of the most effective sources of recruitment.
4. Trained recruiters
The recruitment professionals conducting the interviews and the other
recruitment activities should be well-trained and experienced to
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conduct the activities. They should also be aware of the major
parameters and skills (e.g.: behavioural, technical etc.) to focus while
interviewing and selecting a candidate.
In the last few years, the job market has undergone some fundamental changes
in terms of technologies, sources of recruitment, competition in the market
etc. In an already saturated job market, where the practices like poaching and
raiding are gaining momentum.
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HR professionals are constantly facing new challenges in one of their most
important function- recruitment. They have to face and conquer various
challenges to find the best candidates for their organisations.
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The unavailability of the required skills and talents takes the organisation to
source talent from other countries. The procedures and processes of
recruiting and selecting the human resources are never uniform even within a
single organisation. The procedures vary according to the post, the skill set
required, the nature of work etc. More of it is seen in the case of recruitment
of expatriates. The recruitment and selection procedures and considerations
are drastically different for expatriates than that
of the domestic employees. Recruitment of expatriates involves greater
time, monetary resources and other indirect costs. Improper recruitment and
selection can cause the expatriates to return hastily or a decline in their
performance.
A mismatch between job (its requirements) and people can reduce the
effectiveness of other human resource activities and can affect the
performance of the employees as well as the organisation.
The recruiters for recruiting the expatriates should be carefully selected and
trained. The recruitment strategies for expatriates should be aligned with
requirements of the job. The interviews of expatriates are designed in a
manner to judge their:
Intercultural interaction
Flexibility
Professional expertise
Family situation
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Language ability
A few researches in this field also suggest that women are morel likely to be
successful in certain positions as expatriates as they are more sensitive
towards new culture and people. recruitment of expatriates should be
followed by cultural and sensitivity training, and language training.
HEADHUNTING PROCESS
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10.5 FORMS OF RECRUITMENT
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CENTRALIZED RECRUITMENT
Uniformity in recruitment
Interchangeability of staff
Reduces favoritism
DECENTRALIZED RECRUITMENT
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10.6 EQUAL EMPLOYMENT OPPORTUNITY
Discrimination in employment
disability
race
age
sex
sexuality
pregnancy
Marital status
Diversity in workforce
With the globalization and the increasing size of the organisations, the
diversity in the workforce is increasing i.e. people from diverse backgrounds,
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educational background, age groups, race, gender, abilities etc come together
to work for one organisation and common objectives. Therefore, it is the
responsibility of the employer to create an equality-based and
discrimination-free working environment and practices.
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11. RECRUITMENT PROCESS IN INDIA
The recruitment process may include a written test to judge particular skills
of a candidate. In this case, the test should be prepared carefully, not
deviating from the subject. A lot can be judged about the candidate from his
CV. A proper presentation of his CV in an organized and refined manner
speaks a lot about the individual. His mindset and attitude can be judged
according to his CV.
Next come the interview, which is an important and crucial part of the
recruitment process. The person taking the interview of the candidate has to
be well prepared in advance. Concerns like the location of the interview, the
time table, the structure of the question strategy, style of taking the interview
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needs to be decided beforehand so that nothing is left out and all the issues
are properly addressed.
Moreover, there are a few things that need to be kept in mind during the
recruitment process. Until the final decision about a certain candidate is
taken, it is important to keep in regular touch with the candidate. The
decision making process should not take very long to avoid the candidate
from taking up some other opportunity. A candidate should be duly informed
once the decision is taken. He or she should be told the complete process of
his appointment clearly with details of all the documents that he or she needs
to submit. A record file should be maintained of the candidate for future
reference.
The recruitment process must be robust and justifiable and should stand up
to external scrutiny. Only a good recruitment agency with good
understanding of the domain as well as the process can perform the same
successfully. In India most of the recruitment agencies understand the needs
of the clients and of the candidates and they work in a planned way to recruit
people.
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12. RECRUITING STARS: TOP TEN IDEAS FOR
RECRUITING GREAT CANDIDATES
Looking for talent? The smartest employers, who hire the best people, recruit a
pre-qualified candidate pool of potential employees before they need to fill a job.
Or, as Harvey Mackay, well-known, irreverent, author and speaker, says about
networking, Dig Your Well, Before You're Thirsty (Compare Prices).
You can develop relationships with potential candidates long before you need
them. These ideas will also help you in recruiting a large pool of candidates when
you have a current position available. Read on to discover the best ways to develop
your talent pool and recruit employees.
The earlier you adopt these practices, the better your organization will do in the
upcoming war for talent. (And, trust me, you will experience wars for talent as the
baby boomer generation retires.) Read on to discover the best ways to develop
your talent pool.
A job description that tells potential employees the exact requirements of the
position is useful. Even more useful is the process you use to develop the job
description internally and the behavioral characteristics of your ideal candidate.
Assemble a team of people who represent the best qualities of the people who
currently hold the same or a similar position. Include the hiring manager.
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Develop a job description that delineates the key responsibilities and outputs of the
position. Then, define the behavioral characteristics of the person you feel is your
ideal candidate. Finally, list your five - ten key responsibilities and characteristics
you will use to screen resumes, perform phone screens and eventually, establish
the questions for the candidates you interview.
Sound like a lot of effort? It is. But, you'll have a much better idea about the
characteristics of the ideal candidate you want to attract to your company when
you do this planning via email or a recruiting planning meeting.
Use trade show booth time to meet and get to know potential candidates as well as
customers. Encourage employees to gather business cards from, and develop
relationships with, high potential possible employees. And, don't stop with
employees alone; tap the networks of your social, board, funder and academic
connections, too.
In a client company, the sales manager referred a childhood friend, who was
moving back to our state, for a position. Out of touch for several years, the now
new employee had contacted all of his friends when he needed to relocate from
Chicago to the Detroit area. My client benefitted from the sales manager's network
and hired an outstanding employee.
Make sure you publicize your interest in employee referrals. In some companies,
employee referrals, especially for hard-to-fill positions, are even rewarded with
cash bonuses. Posting all open positions, announcing openings at the company
meetings and sharing growth plans with company members will help spread your
message.
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12.3 Take Advantage of Your Industry Contacts, Association Memberships
and Trade Groups for Recruiting Candidates
Use extensive telephone networking. Bring people in for interviews before you
have an available position. You may even want to consider starting a periodic
company newsletter to keep your master lists of potential employees, customers
and interested others up-to-date about company progress and happenings. You can
use online and/or mail distribution to send these out.
Looking for the "right" associations to join? Check out this resource: Find
Associations, People, and Businesses from the American Society of Association
Executives.
Does your "Join Our Team" section of your company Web site tell and even,
"sell," potential employees about the vision, mission, values and culture of your
company? Do you present a message about how people are valued? Do you
express your commitment to quality and to your customers? If not, you are missing
out on one of the most important recruiting tools you have to appeal to prospective
high-potential employees.
Instead of the typical, dryly-written job listings about available positions, your
Web site needs to include this vision, this information that sets your company apart
from others in your industry. Your job listings must sparkle with personality so a
potential candidate thinks, "this organization is for me." And, now that you have
their attention, you also need to provide a way for candidates to easily submit
resumes for consideration for future positions.
One client Web site has a "Talk to the President" link and, believe me, people do.
We receive a constant stream of resumes and contacts through this invitation and
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even hired a Director of Production who made his first contact here. Another posts
generic position descriptions for positions that frequently need applicants. People
respond. Web site recruiting works.
Don't let these potential employees submit their resumes and never hear from you
again either. You'd lose all the momentum you just spent time developing with the
favored few. Just as I recommended earlier with employee networks and
professional contacts, continue and nurture the relationship.
Think about what a potential employee considers before agreeing to join your
organization or business. Are you stable, making money and growing? Are you
employee-friendly? Does your mission catch the mindshare and/or the heartstrings
of the people you most want to recruit? Will a new employee feel part of
something bigger than themselves if they join you? Will your organization nurture
their talent and provide exciting opportunities for challenge and professional
growth?
If you can answer these questions affirmatively, analyze every component of your
recruiting process to make sure that you are sending these messages. If you want to
be an employer of choice, you must act like an employer of choice. Further more,
you must communicate this commitment to your prospective employees.
People look for little things - that are really big things - such as noticing whether
you return phone calls promptly. They observe when all interviewers repeat the
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same questions. They are aware that you responded to acknowledge receipt of their
resume. They appreciate a phone call when someone else is picked for the job they
wanted. (Yes, you still need to send a letter to the people you interviewed, but the
more informal follow-up is appreciated.) They feel welcomed when they can
communicate with you via email.
The Internet, in addition to your own organization Web site, is in its infancy in
terms of its usefulness to employers, potential employees and society, in general.
Learn how to use the Internet to find and attract great candidates. These are options
you can currently consider.
Post open positions on Web sites that private vendors or your state and/or
local government provide. In Michigan, positions can be posted at no cost on
various websites including JobOpenings.net - Michigan, MLive.com - Everything
Michigan and Michigan Workforce Development. (Search for your local job sites
at America's Job Bank, About's Job Searching site and at Alison Doyle's Job
Searching site for your state Workforce Development organization through your
state department of labor. You'll find multiple options for both posting positions
and searching for jobs.)
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12.8 Use Headhunters and Recruiters
When you work in an HR role, calls from potential recruiters come several times a
week. I ask for references and check them. I also talk with non-competing firms to
get referrals of recruiters with whom they've been pleased. You can also research
recruiters at the Recruiter's Online Network
Temp firms will recruit and screen to your specifications and guarantee your
satisfaction. They save your staff immense amounts of time as they provide testing,
drug screening, reference checking, background checks, and anything else you'd
like, for a nominal fee. By the time I meet the selected group of candidates, most of
the work, other than a personal job interview, has been completed for me.
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Additionally, as the firms become familiar with your needs, just as headhunters
and recruiters do, they will seek out and suggest talent they believe meets your
criteria for star candidates.
I work with two or three agencies and my client company hires only the top five
percent of temporary staff members, so we hire great people.
Identify what your needed candidates read; notice the Web sites they visit; study
the listservs on which they participate; determine the industry magazines and
newspapers they read. Identify their favorite news sources, forums, discussion
groups, and places to practice social networking. In other words, find out
everything you can about the types of people who make up the top ten percent of
your current employees and the best of your talent pool.
Some examples I've seen include a very funny ad in a staid newspaper. It literally
jumped off the page because it stood out so strongly from the pack. (The ad was
looking for a creative for an ad agency; I'll bet they found their perfect candidate.)
I've been recruited as a potential staff member while browsing in a book store.
People recruit at trade shows from the people visiting their booths.
Here's a bonus thought about recruiting great employees: The publicity your
organization receives in the news media, in print, on television, on the radio and
online is tremendously important for recruiting. A few good words, an interesting
article or a piece about your mission that reflects your organization in a favorable
light, will result in potential employees coming to you. And that, in my way of
thinking, is the best way of all to find great potential employees for your candidate
pool.
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Ideas for recruiting are endless and endlessly challenging, but the time and effort
you invest are worth it when they result in top talent for your organization.
Selecting and retaining great staff is key for business success. Talented people who
continue to develop skills and increase their value to your organization and to your
customers are your most important resource. Here's how to select and retain these
people and create an environment in which they continue to thrive.
The primary elements of any plan to improve the quality of the staff you employ
include improving the quality of new hires, identifying and retaining superior
employees, and developing employees (especially those with high potential for
growth). A performance development approach to providing job expectations and
feedback will assist with this process.
At the same time, you need to take a look at underperforming staff. Ask whether
each individual is in the wrong job. Determine whether you have provided specific
and clear requirements so the individual knows what you expect from him. Make
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sure you have provided feedback against goals and objectives so the person knows
he is not meeting expectations.
How would you like to increase your pool of candidates for selection, add value to
your interview process, heighten employee loyalty, build supportive peer
relationships, and improve retention rates simultaneously? By implementing a
team recruitment strategy, you will achieve all this and more.
interviewing and selecting the best applicants, and orienting newly selected
employees into the business.
The most effective team-recruitment approach will include employees at all four
stages of the process.
While there are myriad methods of involving employees in the recruiting process,
this article highlights the three most common strategies: employee as agent,
employee as contributing evaluator, and employee as sponsor or peer mentor.
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Establishing a modest recruitment incentive program will encourage positive
public relations and improve employees' perceptions of their relationship with the
company. An existing employee adds value to an employee recruiting campaign
for several reasons.
Positive public relations will manifest naturally when employees know that
they can benefit from attracting others to the business.
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Gives a voice to the departmental members who will work with the new
employee.
Increases employees' perception of value through inclusion.
Fosters positive working relationships between managers and reporting staff.
serves as a practical training exercise for interviewing skills.
supports a spirit of cooperation across organizational levels.
provides key, front-line, operational insights regarding a candidate's ability to
respond to position requirements.
Supports ownership and empowerment of departmental activity.
------------------------------------------------------------------------
UNIVERSE
The first step in developing any sample design is to clearly define the set of
objects, technically called the universe. The population was finite.
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A definite plan was drawn up for obtaining a sample from the employees of the
ICICI life insurance in KOTA.
Sampling Technique
In it I study the various steps that are generally adopted by a researcher in his
research problem along with the logic behind them. It is necessary for the
researcher to know not only the research method but also the methodology.
Random sampling:-
Research Design:-
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A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Exploratory research design is used.
The research study was conducted in order to know the employee’s awareness and
perception level regarding the prevailing Performance Management System in
ICICI life insurance Ltd.
On the basis of the following two sources, the research was carried out:-
1. Primary Data
2. Secondary Data
1. Primary Data:-
o Awareness
o Measures of Performance
o Feedback
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o Perception
2. Secondary Data:-
All the results and conclusions have been drawn on the basis of the
information provided by the respondents not denied that there was
always a possibility of response error.
Some respondents were reluctant and were tend to filter the information
to the researcher.
The sample size taken may not prove adequate for conditions.
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14. SWOT ANALYSIS
The internal and external situation analysis can produce a large amount of
information, much of which may not be highly relevant. The SWOT analysis can
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serve as an interpretative filter to reduce the information to a manageable quantity
of key issues. The SWOT analysis classifies the internal aspects of the company as
strengths or weakness and the external situational factors as opportunities or
threats. ICICI Life Insurance also has many strength and weakness and opportunity
and threats.
STRENGTHS: -
Effective bank support in service: ICICI life insurance have full support in
service by ICICI bank which have branches across India.
Varity in product and good service: ICICI have various plans for individual,
group and rural sector and give more emphasis on providing good services to its
customer.
Brand name and goodwill of the company: Kodak have very good image in
financial market.
Good Rewards and Recognition program and effective advisors team: ICICI
have good rewards and recognition program which are held time to time to
motivate its employees and the advisors.
Self fund management house: ICICI is the only company in India which has its
own fund management house.
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Stability of the employees: ICICI provide good facilities, salary and environment
to its employees to make them more stable.
WEAKNESS:-
Small number of staff: total number of employees in KOTA branch is not enough
and the office is also do not have need space as required.
Lack of marketing: another major weakness with ICICI life insurance is lack of
efforts in the marketing of product. There are many few areas where we can see
any kind of marketing push made by company.
OPPORTUNITIES:-
Huge market potential: - the Rajasthan market is very wide the only thing which
is requiring covering it is right approach. But ICICI life insurance is only now in
KOTA and Jodhpur and can spread branches across Rajasthan.
Huge potential for marketing: - insurance sector now in its boom period so there
is a very huge potential for marketing.
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People acceptance: - people are ready to use ICICI life insurance product but only
thing is ICICI is not knocking their door at the right time.
New investment plans: - company should be developed new investment plans that
are different from other company.
More training programs for the employees and the advisors: - more training
programs for employees beneficial to improve the co-ordination and both of the
employees and the advisors will help the company in maintaining its goodwill in
the market.
THREATS:-
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15. CONCLUSION
The procedure laid down in this system is quite clear to the concerned persons who
have been given the job to measure the performance of various individuals. But yet
the persons (sales manager) at the various levels for whom this policy has been
implemented are not well aware of the procedure and policies followed by this
system.
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The performance of the sales manager is quite satisfied according the organization
need but if we measured in terms of the team spirit and in using resources it will
become quite low because they knew only selling how their targets can be
achieved but they don’t know that how these targets can be achieved through the
co-ordination or resources in a sequential way.
One more important thing is that some employees do their work in stress and they
show it in behave which makes the bad image of the company in the eyes of the
outsiders.
Apart from all this, the management could not implement this system in its true
spirit, yet they are working hard to derive benefits from this. From This day this
PMS is carried on as per stipulated procedures and policies then it is definitely
going to earn fruitful results for the company (i.e. ICICI life insurance) and will
garnish the entire organization with its presence.
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BIBLIOGRAPHY
www.humanresources.about.com
www.ICICI. Com
www. MyICICIlife.com
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