INTRODUCTION

Analysis of employee mobility is a vital part of the management process. The

obtaining and recording of costs, number of people leaving, types of employees
who are terminating, why they are separating from the company, are all indicative
factors to the management of its quality of operation. Without this analysis,
management is overlooking one of the most important factors of production with
which it must cope.

The nature of the employees also has important effects. The relationship between
employee characteristics and the pattern of employee separations can have
profound effects on organizational goals.

Mobility of employees among organizations and between functional submits

within a given organization, confronts managers with many interrelated and
knotty problems.

An attempt made to study the employee separation or employees mobility in

Kotak Life Insurance

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 REVIEW OF LITERATURE

Employee turnover is defined as the ratio of the number of workers that had to be
replaced in a given time period to the average number of workers

The Chartered Institute of Personnel and Development is the United Kingdom's

leading professional body for those involved in the management and
development. It has done a lot of surveys and research on the subject and has
given the below inferences.

In a human resources context, turnover or labor turnover is the rate at which an

employer gains and loses employees. Simple ways to describe it are "how long
employees tend to stay" or "the rate of traffic through the revolving door."
Turnover is measured for individual companies and for their industry as a whole.
If an employer is said to have a high turnover relative to its competitors, it means
that employees of that company have a shorter average tenure than those of other
companies in the same industry. High turnover can be harmful to a company's
productivity if skilled workers are often leaving and the worker population
contains a high percentage of novice workers.

Turnover levels vary very considerably from industry to industry. The highest
levels of turnover (20.4%) are found in private sector organisations. Successive
CIPD surveys of labour turnover show that the highest levels are typically found
in retailing, hotels, catering and leisure, call centres and among other lower paid
private sector services groups. The public sector has an average turnover rate of
13.5%.

Turnover levels also vary from region to region. The highest rates are found
where unemployment is lowest and where it is unproblematic for people to secure
desirable alternative employment.

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The study has also answered the below mentioned questions
1. When does employee turnover become problematic?
Measuring employee turnover
Measuring employee retention
Costing employee turnover
2. Why do people leave organizations?
3. Premature departure
4. Investigating why people leave

The following suggestions were offered for improving employee retention

1. Job previews
2. Make line managers accountable
3. Career development and progression
4. Consult employees
5. Be flexible
6. Avoid the development of a culture of 'presenteeism'
7. Job security
8. Treat people fairly
9. Defend your organization

This project answers the above questions and enumerates in detail the suggestions
offered by the employees in reference to Kotak Life Insurance.

3
 INDUSTRY PROFILE

The concept of insurance (i.e. That which displays the characteristics of insurance
in the sense of a transfer of risk of loss due to a fortuitous uncertain event in lieu
of payment of consideration/premium), is a marine insurance contract on a ship
“The Santa Clara” dated 1347 in Genoa. The policy is in the Italian language and
appears in the form a maritime loan to avoid the canon (church) prohibition
against usury.
The earliest insurance contracts did not appear in the form of a modern insurance
contract, but rather was drafted in the form of either a fictional sale or loan, until
the insurance contract proper was recognized and accepted.

The earliest insurers were merchants underwriting risks for fellow merchants, on a
part time basis.

Until the 1800-1900’s premiums were not determined by statistics kept etc. as in
the modern sense, but was often arrived at as a result of haggling.

Insurance Industry

First Learn about Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risk, attached to individual.

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

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

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DEFINITION:
A promise of compensation for specific potential future losses in exchange for a
periodic payment, Insurance is designed to protect the financial well-being of an
individual, company or other entity in the case of unexpected loss

Insurance is broadly classified into two categories namely-

1) Life insurance
2) General insurance

Life insurance is the insurance taken against the life of the person, where as
general insurance includes insurance on assets.

Prior to a decade the life insurance was completely under the control of
government; private companies’ entrance added an advantage such as more
services to their customers,

Private insurance companies are MetLife, Bajaj Allianz, Tata AIG

INTRODUCTION

The Concept Of Insurance

The business of insurance is related to the protection of the economic value of an

asset for which a normal life time exists during which it is expected to perform.
However if the asset gets Damaged, Destroyed or is made non functional by the
occurrence of some unfortunate event the owner of the assets suffers .Insurance is
a mechanism to reduce the financial implications of such consequences.

The mechanism involves people who are exposed to the same risk come together
and agree that if any one of the members suffers a loss the others will share the

5
loss and make good the loss. Thus people facing common risk come together and
make their contribution towards a common fund whose amount is determined
beforehand on the basis of past data and experiences.

The fundamental underlying principle of insurance is

1. Losses must be definite and discreet in time and place

2. Losses must not be fortuitous accidental in nature and beyond the control of
the insured
3. Losses must be large enough to cause a financial burden
4. Losses must be measurable or calculable and a monetary amount should be
determined to compensate the loss
5. Past history of the specific losses should exist to help the actuaries to estimate
frequency severity and costs involved and determine fair rates of insurance.
6. The cost of insurance should be affordable by the parties and should be a
fraction of the value of the insured Item.

Thus we see that a large number of homogenous units (people, companies,

entitles) with a similar potential for loss exposure must be available for insurance
and this is generally referred to as The Law of large numbers.

Life Insurance

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear
risk of the caravan trade by giving loans that had to be later repaid with interest
when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal
status to the practice. That, perhaps, was how insurance made its beginning.

Life insurance had its origins in ancient Rome, where citizens formed burial clubs
that would meet the funeral expenses of its members as well as help survivors by
making some payments.

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As European civilization progressed, its social institutions and welfare practices
also got more and more refined. With the discovery of new lands, sea routes and
the consequent growth in trade, Medieval guilds took it upon themselves to
protect their member traders from loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So
these guilds even offered ransom for members held captive by pirates. Burial
expenses and support in times of sickness and poverty were other services
offered. Essentially, all these revolved around the concept of insurance or risk
coverage. That's how old these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the earliest known
insurance contract and decided to accept marine insurance as a practice.

The first step...

Insurance as we know it today owes its existence to 17th century England. In fact,
it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee
House in London, where merchants, ship-owners and underwriters met to discuss
and transact business. By the end of the 18th century, Lloyd's had brewed enough
business to become one of the first modern insurance companies.

Insurance and Myth...

Back to the 17th century. In 1693, astronomer Edmond Halley constructed the.
First mortality table to provide a link between the life insurance premium and the
average life spans based on statistical laws of mortality and compound interest. In
1756, Joseph Dodson reworked the table, linking premium rate to age.

Enter companies...

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The first stock companies to get into the business of insurance were chartered in
England in 1720. The year 1735 saw the birth of the first insurance company in
the American colonies in Charleston, SC.

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance
corporation in America for the benefit of ministers and their dependents.

However, it was after 1840 that life insurance really took off in a big way. The
trigger: reducing opposition from religious groups.

The growing years...

The 19th century saw huge developments in the field of insurance, with newer
products being devised to meet the growing needs of urbanization and
industrialization.

In 1835, the infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts became the
first state to require companies by law to maintain such reserves. The great
Chicago fire of 1871 further emphasized how fires can cause huge losses in
densely populated modern cities. The practice of reinsurance, wherein the risks
are spread among several companies, was devised specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it mandatory
for a company to insure its employees against industrial accidents.
With the advent of the automobile, public liability insurance, which first made its
appearance in the 1880s, gained importance and acceptance?

In the 19th century, many societies were founded to insure the life and health of
their members, while fraternal orders provided low-cost, members-only insurance.

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Even today, such fraternal orders continue to provide insurance coverage to
members as do most labor organizations. Many employers sponsor group
insurance policies for their employees, providing not just life insurance, but
sickness and accident benefits and old-age pensions. Employees contribute a
certain percentage of the premium for these policies.

Life Insurance in India

Although insurance in its present form has been brought to India by the British
and other colonial powers the concept of collective co-operation to share a
particular risk is as old as the dawn of human civilization.

India was a major trading power in ancient times and some examples of sharing
risks can be found such as ships carried cargo of several traders together instead
of a single individual. In the Mogul army a life annuity was granted to the family
on the demise of a soldier against some regular contribution in his life time. The
Joint family system of India is also an embodiment of the same concept.

Early attempts
Life insurance in its modern form came to India from England in 1818 with the
formation of the Oriental Life Insurance Company in Kolkata and with the
passage of time Indians were also covered by this company. By 1868 there were
285 companies operating in India and were primarily into insuring the European
lives, those Indians who were offered were charged an extra premium of 15 to
20% and treated as substandard lives.

First Indian Company

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The first insurance company under the title "the Bombay life insurance society"
started its operations in 1870 and started insuring lives of Indians at standard
rates. Later "oriental Govt. life insurance co." was established in 1874 which
emerged as the leading insurance company in India.

Pre Independence history

With the various freedom movements various leaders encouraged domestic life
insurance companies to enter the fray. In 1914 there were only 44 companies and
in 1940 this number grew to 195.From here on the growth of life insurance was
quiet steady except in 1947-48 during the partition of India.

Nationalization of Insurance Business 1956

After Independence our nation was moving towards a Socialistic pattern of

society and with the main aim of spreading the concept to rural areas and to
channel the money into nation building activities the government of India
Nationalized the life insurance business and formed "The Life Insurance
Corporation of India" by merging about 250 life insurance companies. The Life
Insurance Corporation of India started functioning from 1.9.1956 and is today the
largest insurer in the country with one central office, seven zonal offices and over
2048 branch offices with a workforce of 125000 employees and over 800000 life
insurance agents.

Evaluate your life insurance needs

Life Insurance is one of the most popular savings/ investment vehicles in India.
Ironically, it’s probably the least understood too. An insurance policy offers much
more than just tax planning and investment returns. It offers the ability to plan for
unforeseen events that could affect family's financial profile adversely.

Factors to consider:

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 Financial profile and needs are different from person to person, and the same is
true for insurance needs.

However, irrespective of the differences, the number of dependents PH has and

their financial needs are the most important factors to consider.

Issues to consider while evaluating the above factors include:

1) The wealth, income and expense levels of PH dependents,

2) Their significant foreseeable expenses,
3) The inheritance PH would leave on them, and
4) The lifestyle PH wants to provide for them.

How much insurance does a person need?

Obviously the above factors mean nothing to the insurance planning process
unless they are quantified.

Globally, the time-tested approach used by insurance and financial planners is the
capital needs analysis method.

When should you re-evaluate?

Whenever any of the factors discussed above change.

In Step 2, understand the key concepts underlying life insurance.

Risk cover versus investment returns:

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Insurance options range from policies with low premium that offers a PH almost
no returns to those with high premium that effectively offer post-tax returns of
around 8% to 9.5% p.a.

These returns are at the lower end of fixed-income returns available today and
hence are relatively unattractive.

I recommend PH buy an insurance policy skewed towards investment returns only

if you are in the high-tax bracket, prefer to invest in low-risk, fixed-income
options and have exhausted all the other such investment options available.
See Financial Investment Options and Government Schemes Directory for details
of low-risk, fixed-income investment options available.

Whole life versus limited period:

As PH grow older, he may not have as many dependents (his children would
become self-dependent) or his wealth may reach a level where it can support his
dependents’ financial needs in the event of his death.

These possibilities bring us to the interesting question on whether he should

insure himself, for whole life or for a limited term. Obviously, the cost of
insurance for the latter is lower.

I recommend him to insure for whole life only if he never expect his wealth to
reach a level where it can support the financial needs of his dependents.

Tax Planning:
The premium paid for an LIC policy also qualifies for tax rebate under Section 88
of the Income Tax Act. The maximum premium amount that can qualify for
rebate is Rs60, 000 per annum and you get a rebate equivalent to 20% of the
premium paid, from your tax liability for the year.

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 In step 3, deals about steps in selecting a life insurance policy.

Understand how much insurance PH need:

This is the single most important factor to evaluate before PH select a life
insurance policy. For this, he must consider the current expense profile of his
dependents and the current wealth level of his family. Also, consider what is his
dependent’s risk tolerance level is. Is he adequately Insured, this planning tool can
take him step-by-step in addressing this issue.

Selecting Premium Paying Term (PPT):

How long he want to pay his insurance premium for? Key factors this decision
could depend upon are -

1) How many years he see himself earning a regular income

2) The level of his regular savings
3) The amount he can commit to paying regularly as insurance premium
4) How long he want to be insured versus how long he expects to pay a premium
for?

Other important questions to ask besides understanding how much insurance he

need and letting his premium-paying term, he need to consider some other

Key factors, such as -

1) Does he want to participate in bonus/ profit share?

2) What is the primary objective of his seeking insurance –
3) Mainly risk cover, mostly investment returns?
4) Does he want accident cover?

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For a detailed understanding of the factors he need to consider while selecting a
life insurance policy, and the rationale for the same, use Insurance Planner.

This planning tool will also take him step by step and arrive him at a shortlist of
life insurance policies appropriate for him, based on his personal profile.

To understand life insurance terms, he can read The Basics of Life Insurance is as
follows....

What is life Insurance?

Life insurance is a contract for payment of money to the person assured (or to the
person entitled to receive the same) on the occurrence of the event insured
against.
Usually the contract provides for -
Payment of an amount on the date of maturity or at specified periodic intervals or
at death, if it occurs earlier.
Periodical payment of insurance premium by the assured, to the corporation who
provides the insurance.

Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a

Valid contract. Subject to certain conditions, a policy can be taken on the life of a
spouse or children.

What is a Whole Life Policy?

When most people think of life insurance, they think of a traditional whole life
policy. These are the simplest policies to understand: You pay a fixed premium

14
every year based on your age and other factors, you earn interest on the policy's
cash value as the years roll by, and your beneficiaries get a fixed benefit after you
die. The policy takes you into old age for the same premium you started out with.
Whole life insurance policies are valuable because they provide permanent
protection and accumulate cash values that can be used for emergencies or to
meet specific objectives. The surrender value gives you an extra source of
retirement money if you need it.

What is an Endowment policy?

Unlike whole life, an endowment life insurance policy is designed primarily to

provide a living benefit and only secondarily to provide life insurance protection.
Therefore, it is more of an investment than a whole life policy. Endowment life
insurance pays the face value of the policy either at the insured's death or at a
certain age or after a number of years of premium payment.

Endowment life insurance is a method of accumulating capital for a specific

purpose and protecting this savings program against the saver's
premature death. Many investors use endowment life insurance to fund
anticipated financial needs, such as college education or retirement.

Premium for an endowment life policy is much higher than those for a whole life
policy.

What is a Money Back policy?

This is basically an endowment policy for which a part of the sum assured is paid
to the policyholder in the form of survival benefits, at fixed intervals, before the
maturity date. The risk cover on the life continues for the full sum assured even
after payment of survival benefits and bonus is also calculated on the full sum

15
assured. If the policyholder survives till the end of the policy term, the survival
benefits are deducted from the maturity value.

What is An Annuity Scheme?

Annuity schemes are those wherein your regular contributions over a period of
time (or a one-time contribution) accumulate to form a corpus with the insurer.
This corpus is used to yield you a regular income that is paid to you until death
starting from your desired retirement age. Some annuity schemes have the option
to pay your survivors a lump sum amount upon your death in addition to the
regular income you receive while you are alive.

What are With Profit and Without Profit Plans?

The insurer distributes its profits among it policyholders every year in the form of
a bonus/ profit share. An insurance policy can be "with" or “Without” profit. In
the former, any bonus declared is allotted to the policy and is paid at the time of
maturity/ death (with the contracted amount). In a “without” profit plan, the
contracted amount is paid without any profit share. The premium rate charged for
a “with” profit policy is therefore higher than for a "without" profit policy.

What is Bonus?

An insurer distributes its profits among it policyholders every year in the form of
a Bonus. Bonuses are credited to the account of the policyholder and paid at the
time of maturity. Bonus is declared as a certain amount per thousand of sum
assured. The term "bonus" is used interchangeably with "with profit".

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What are guaranteed Additions?
In some policies, the insurer guarantees the bonus/ profit declared as a certain
amount per thousand of sum assured. This assured bonus will be credited to the
policyholder irrespective of the performance of insurance company and is known
as Guaranteed Additions. Guaranteed Additions will be payable at the end of the
term of the policy or early death of the policyholders.

What are Loyalty Additions?

In some policies, over and above Guaranteed Additions, the insurer will declare
and credit to the policyholder, an additional amount per thousand of sum assured
every 5 years, depending on its performance. This additional amount is known as
Loyalty Addition.

What are Survival Benefits?

In some policies, a part of the sum assured is paid to the policyholder in the form
of Survival Benefits, at fixed intervals before the maturity date. The risk cover for
life continues for the full sum assured even after payment of survival benefits and
bonus is also calculated on the full sum assured. If the policyholder survives till
the end of the term, the survival benefits will be deducted from maturity value.

What are Accident Benefits?

On payment of an additional premium of Re1 per Rs1000 of Sum Assured per
year, the assured is entitled to the following benefits:-
In case of accidental death, the nominee shall receive double the sum assured.
In case of total and permanent disability due to accident, risk coverage continues
without further payment of premium. In addition, an amount equal to the sum
assured is paid to the assured in monthly installments spread over 10 years.
However, subsequent accidental death will not entitle the nominee for double the
sum assured.

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What are Disability Benefits?
If the assured becomes totally and permanently disabled due to any accident, he
need not pay future premiums and his policy shall remain in force for the full Sum
Assured.

What are the various modes of payment for premium?

Premiums, other than single premiums, can be paid by the policyholders to the
insurer in yearly, half-yearly, quarterly or monthly installments or through a
Salary Savings Scheme. If the mode of payment is yearly or half-yearly, some
insurers give a rebate of 3% and 1.5% respectively on
the premium. If the mode of payment is monthly, some insurers charge an
additional 5% (this additional charge is waived for the Salary Saving Scheme).

What is Salary Savings Scheme?

Salary Savings Scheme provides for payment of premiums through monthly
deductions by the employer from the salary of employees. For this scheme, the
additional charge of 5% of the premium usually added for the monthly mode of
payments will be waived.

What loans are available against life insurance policies?

At present loans are granted on unencumbered polices as follows -
Up to 90% of the Surrender Value for policies, where the premium due is fully
paid-up, and
Up to 85% of the Surrender Value for policies where the premium due is partly
paid-up.
The minimum amount for which a loan can be granted under a policy is Rs150.
The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not
granted for a period shorter than six months, or on the security of lost policies (the
assured must have the duplicate policies) or on policies issued under certain plans.
Certain types of policies are, however, without loan facility.

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What is Surrender Value?
The cash value payable by the insurer on termination of the policy contract at the
desire of the policyholder before the expiry of policy term is known as the
surrender value of the policy. Generally, a policy can be
surrendered provided the policy is kept in force for at least 3 years. The bonus is
also added to the surrender value if the policy has been in force, in most cases, for
at least 5 years.

What is a Death Claim?

The claim is usually payable to the nominee/assignee or the legal successor, as the
case may be. However, if the deceased policyholder has not nominated/assigned
the policy or not made a will, the claim is payable to the holder of a Succession
Certificate or such evidence of title from a Court of Law.

What is Nomination/Assignment of a Policy?

When the policy money becomes due for payment on the death of the
policyholder, it can be paid only to that person who is legally entitled to give a
valid and effective discharge to the corporation. If the policy bears nomination,
the claim is settled in favor of the nominee. Similarly, if the policy is assigned, the
assignee receives the claim amount. It should be noted that an assignment of a
policy automatically cancels the existing nomination. Hence, when such a policy
is reassigned in favor of the policyholder, it is necessary to make fresh
nomination.

What are Medical and Non-Medical Schemes?

Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also as a measure
of relaxation, some insurers do offer insurance cover without any medical
examination, subject to certain conditions.

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How do you effect a Change of Address and Transfer of Policy Records?
When a policyholder wants to change his address in the insurer’s records, notice
of such change should be given to the Branch office servicing his policy. Policy
records can be transferred from the Branch Office that services the policy to any
other Branch Office nearest to the policyholder’s place of residence. The correct
address facilitates better services and quicker settlement of claims.

When does a policy lapse?

When the premium is not paid within the days of grace provided after the due
date, the policy lapses. The grace period in case of yearly, half-yearly and
quarterly modes of payment is one month and in case of the monthly mode of
payment, it is 15 days.

How can a lapsed policy be revived?

A lapsed policy may be revived during the lifetime of the assured, but within a
period of 5 years from the due date of the first unpaid premium and before the
date of maturity. Revival of a lapsed policy is considered either on non-medical or
medical basis depending upon the age of the life assured at the time of revival and
the sum to be revived. If the revival of the policy is completed by payment of
over-due premium within 14 days from the expiry of the grace period, only the
late fee for one month has to be paid.

Can a policy be altered?

No alteration is permissible in the policy document - the evidence of contract,
unless both the parties to the contract agree. After the policy is issued, a
policyholder in a number of cases finds the terms not suitable to him/her and
desires to change them to suit his/her convenience. As all insurers also realize that
insurance is a long term contract, certain changes under given circumstances
might necessitate an alteration of the contract. Keeping in view the basic
principles of insurance and administrative convenience, most insurers permit
some alterations. Though, it is generally found that as a rule, insurers do not

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permit alterations resulting in lower rates of premier and within the 1st year from
the commencement of the policy.

What is the difference between Life Insurance and General Insurance?

A Life Insurance deals with various plans connected with the life of a person,
whereas all kinds of non life insurance policies are issued by the General
Insurance companies.

What are the documents to be executed at the time of taking insurance?

A Proposal form should be filled in by the person taking insurance without
concealing any material facts. The values for which insurance is to be taken is
also decide by the party taking insurance. No bills, documentary proofs are taken
by the insurance companies at the time of taking insurance, as the insurance is a
contract of utmost good faith.

Premium is to be given along with the proposal form for completing the insurance
transaction after which the insurance company issues the cover note or policy.

Insurance Sector Reforms

Why it became Inevitable Despite the phenomenal success of The Life Insurance
Corporation of India the government and the public at large were not satisfied
with it and by signing the GATT accord the Government of India was committed
to open up the insurance sector to both domestic and international firms.

A committee under the chairmanship of late Mr. R.N Malhotra was formed (ex
governor RBI) and came to conclude that the monopoly of LIC lead to the lack of
sensitivity towards policy holders and only 22% of the insurable population was
insured.
The committee thus recommended a number of measures to revamp LIC and to
allow foreign companies to operate in India with an Indian partner. It felt that this

21
 would lead to a greater scope in product innovation and service improvement as
well.

In 1999 the Insurance Regulatory and Development Authority Bill was passed by
the government to facilitate the growth and regulate the newly opened insurance
sector and to guarantee the investments made by the people.

On August 15, 2000 the sector was finally opened for foreign sector participation.

Deregulation came with certain conditions:

Firstly, all new foreign players entering the Indian market must set up a joint
venture with a local company.

Secondly, the maximum share the foreign player can hold is 26%, with the local
company (or companies) holding the balance. Regulators are currently
reconsidering the foreign equity cap of 26%.

Proactive steps taken by the IRDA for development of the market:

1) Market regulation by prudential norms.
2) Registration of players who have the necessary financial strength to withstand the
demands of a growing and nascent market.
3) Implementation of a solvency regime that ensures continuous financial stability.
4) Presence of an adequate number of insurers to provide competition and choice to
the customers.
5) Development of market capacity by asking insurers to retain bulk Of the premium
within the country and to exhaust local market Capacity before reinsuring abroad.

In today’s highly competitive financial services environment, effective

organizations will employ technology in a strategic role to achieve competitive

22
edge. Technology will play an increasing role in aiding design and administering
of products, as well in efforts to
Build life-long customer relationships.

23
 COMPANY PROFILE

Corporate Identity

Kotak Mahindra Bank Ltd. (KMBL)

Kotak was set up in 1994. Kotak Mahindra Bank Limited (KMBL) is the
holding company and the flagship of the Kotak Mahindra Group. It was actually
incorporated as Kotak Capital Management Finance Limited on November 2,
1985 and obtained its ‘Certificate of Commencement of Business on February 11,
1986.

With the liberalization of the Indian economy and the opening up of the
financial markets, the Company diversified and started offering a wider spectrum
of financial services.

Old Mutual plc.

Old Mutual plc. Is a leading financial services provider in the world,

providing a broad range of financial services in the area of insurance, asset

24
 management and banking. It is a leading life insurer in South Africa, with more
than 30% market share. The partnership with Old Mutual plc. Provides the Kotak
Mahindra group with an international perspective and expertise in the life
insurance business.

The Joint Venture

The joint venture OM Kotak Mahindra Life Insurance started off with an
initial net worth of Rs. 150 crore, with 74:26 stake between KMBL and OM. .The
Life Insurance business offers KMBL with an opportunity to leverage its core
strengths of Wealth Management and Retail Distribution.

OM Kotak Mahindra Life Insurance

• Kotak Mahindra Old Mutual Life Insurance Limited was established in 2000 as a
joint venture between Kotak Mahindra Bank Ltd. - KMBL (74%) and Old Mutual
plc, London (26%)
• Total assets managed by the Kotak Mahindra Group are around USD 9.4 billion.
It is amongst the few banks in India to have a non-profitable asset level of just
0.33%
• KMBL was the first non-banking financial company (NBFC) to receive a retail
bank license in 2003
• In the life insurance market, Kotak Life Insurance registered an adjusted premium
(single premium: 1/10) growth of over 53% from financial year 2005-06 to
financial year 2006-07
• Kotak Life Insurance, with 100 branches in over 68 cities, and a work force of
over 4,100 employees, is a company with a high level of brand awareness
• Kotak Life Insurance aspires to a spiralling growth with a strong focus on the
customer, products, mapping of geographic distribution channels and fund
performance
• Member of the Swiss Life Network since 2003

25
 Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture between
Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life
Insurance is one of the fastest growing insurance companies in India and has
shown remarkable growth since its inception in2001.

Old Mutual, a company with 160 years experience in life insurance, is an

international financial services group listed on the London Stock Exchange and
included in the FTSE 100 list of companies, with assets under management worth
$ 400 Billion as on 30th June, 2006. For customers, this joint venture translates
into a company that combines international expertise with the understanding of
the local market.

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, offering

complete financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life insurance, to
investment banking, the group caters to the financial needs of individuals and
corporates.

The group has a net worth of over Rs. 5,609 crore, employees around 17,100
people in its various businesses and has a distribution network of branches,
franchisees, representative offices and satellite offices across 344 cities and towns
in India and offices in New York, London, Dubai, Mauritius and Singapore. The
Group services around 3.6 million customer accounts.

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management
Finance Limited. This company was promoted by Uday Kotak, Sidney A. A.
Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand
Mahindra took a stake in 1986, and that's when the company changed its name to
Kotak Mahindra Finance Limited.

26
Since then it's been a steady and confident journey to growth and success.

Kotak Mahindra Finance Limited starts the activity of Bill

1986
Discounting
Kotak Mahindra Finance Limited enters the Lease and Hire
1987
Purchase market
1990 The Auto Finance division is started
The Investment Banking Division is started. Takes over FICOM,
1991
one of India's largest financial retail marketing networks
1992 Enters the Funds Syndication sector
Brokerage and Distribution businesses incorporated into a separate
company - Kotak Securities. Investment Banking division
1995
incorporated into a separate company - Kotak Mahindra Capital
Company
The Auto Finance Business is hived off into a separate company -
Kotak Mahindra Prime Limited (formerly known as Kotak
Mahindra Primus Limited). Kotak Mahindra takes a significant
1996
stake in Ford Credit Kotak Mahindra Limited, for financing Ford
vehicles. The launch of Matrix Information Services Limited marks
the Group's entry into information distribution.

Enters the mutual fund market with the launch of Kotak Mahindra
1998
Asset Management Company.

Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance
business.
Kotak Securities launches its on-line broking site (now
2000
www.kotaksecurities.com). Commencement of private equity
activity through setting up of Kotak Mahindra Venture Capital
Fund.
2001 Matrix sold to Friday Corporation

27
 Launches Insurance Services
Kotak Mahindra Finance Ltd. converts to a commercial bank - the
2003
first Indian company to do so.
2004 Launches India Growth Fund, a private equity fund.
Kotak Group realigns joint venture in Ford Credit; Buys Kotak
Mahindra Prime (formerly known as Kotak Mahindra Primus
2005
Limited) and sells Ford credit Kotak Mahindra.
Launches a real estate fund
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra
2006 Capital Company and Kotak Securities

Types of benefits:

Coverage available:

• Group Life
• Accidental Death & Dismemberment (rider)
• Accidental Lump Sum Disability (rider)
• Critical Illness (rider)
• Credit Life
• Group Gratuity Scheme
• Group Superannuation Scheme

SPECIAL ADVANTAGES:

• Market leader in brokerage, car finance & investment banking

28
 • Dedicated to developing unique products with a special focus on product and
service quality
• Among the first to offer group insurance products in the Indian market
• Extensive nationwide coverage through a direct sales force, brokers, spotters
and frontline sales managers in more than 68 cities
• Kotak Life Insurance's value proposition is based on strong corporate
relationships, superior products, extensive marketing skills and quality of
service

The objective of Kotak Life Insurance is to build long-term sustainable business under
regular premium and sustain fund performance in the capital guaranteed segment.

Kotak Group Products & Services

Bank
Life Insurance
Mutual Fund
Car Finance
Securities
Institutional Equities
Investment Banking
Kotak Mahindra International
Kotak Private Equity
Kotak Realty Fund

Kotak mahindra deals with different products namely

29
| | | |
BANKING INVESTMENT LOANS CORPORATE
& & & &
SEVICES INSURANCE BORROWINGS INSTITUTIONAL

BANKING A/C LIFE INSURANCE CAR FINANCE CORPORATE

DEMAT MUTUAL FUNDS HOME LOANS FINANCE,
DEPOSITS SHARE TRADING LOANS ON PROPERTY
N R I SERVICES GOLD PERSONAL LOANS TREASURY
CONVINIENCE BANKING REAL ESTATE EQUITIES

Individual Group Rural

Kotak Smart Advantage Employee Kotak
Kotak Eternal Life Plans Benefits Gramin
Kotak Platinum Advantage Plan Kotak Term Bima
Kotak Headstart Child Plans Grouplan Yojana
Kotak Sukhi Jeevan Plan Kotak Credit-
Kotak Privileged Assurance Plan Term Grouplan
Kotak Term Plan Kotak
Kotak Preferred Term Plan Complete Cover
Kotak Money Back Plan Grouplan
Kotak Child Advantage Plan Kotak Gratuity
Kotak Endowment Plan Grouplan
Kotak Capital Multiplier Plan Kotak
Kotak Retirement Income Plan Superannuation
Kotak Retirement Income Plan Grouplan
(Unit-linked)
Kotak Safe Investment Plan II
Kotak Flexi Plan
Kotak Easy Growth Plan
Kotak Premium Return Plan
Riders

PURPOSE OF THE PROBLEM

30
The main objective is to study the reasons for employee turnover or causes for
manpower leaving the organization and the level of satisfaction of employees
regarding the various aspects like pay, training given by the organization,
performance appraisal which effects the job they do.

Analysis of employee mobility is a vital part of the management process. Human

resource managers make decisions that affect the relationships between
employees and employers like how many employees to hire, at who to train in
which skills and how to handle dissatisfied employees. The obtaining and
recording of costs, number of people leaving, types of employees who are
terminating, why they are separating from the company, are all indicative factors
to management of its quality of operation. Without this analysis, management is
overlooking one of the most important factors of production with which it must
cope.

DEFINITION

31
Employee mobility has been defined as “the rate of change in the working staff of
a concern during a definite period.” In other words it signifies the shifting of the
workforce into and out of an organization. It is a measure of the extent to which
old employees leave and new employees enter into service in a given period. It is
sometimes defined as a measurement of inarticulate labor unrest.

Employee mobility is the cause and effect of instability of employment, apart

from being a measure of the morale and efficiency or otherwise of workers. The
rate of employee turnover is generally expressed in a number of different
formulas, which involve such forms.

Separations
Accessions
Replacements

DEGREE OF EMPLOYEE MOBILITY

32
A certain amount of mobility is evitable. Illness, accidents, aging, death, and a
variety of personal reasons bring about separations. Some of these same factors,
as well as economic and financial conditions in organizations and in the larger
community, occasion terminating of employment, layoffs, or internal mobility.

However although some degree of mobility is both inevitable and healthy, too
much of it can severely reduce productivity, demoralize, incumbents, and damage
an organizations public image. On the other hand, too little internal mobility
stultifies employee ambitions, and too low a rate of external mobility can result in
a moribund organization. Thus, studying past and current rates of mobility is
important for managers and personnel administrators.

Costs involved if employee leaves the organization

All employee mobility (in and out of an organization and up, down or laterally) is
part of the total turnover picture. The chief financial costs of such mobility may
be calculated by examining the following:

Hiring cost:

Involving time and facilities for recruitment, interviewing and examining a

replacement.
For new hires, expenses incurred during two major phases of the employment of
process:
Employment procedures including recruitment, selection and placement.
A training period including orientation, induction, follow-up, training, and
employment development.

33
Training cost:

Involving the time of the supervisor, the personnel department and trainee.

When training takes place on the job, as is usual for rank and file employees, part
of the cost consists in the time taken to reach peak productivity. This cost
element depends in large measure on the quality of instruction, the degree to
which an employee’s inner motivation is stimulated, and extent of cooperation by
associates. For these reasons it is sometimes proved as an unduly expensive to

Apprentice a new hire to an “old hand” with the aim of saving time for a first
level supervisors or training specialist.

When training takes place off the job the immediate financial cost is obviously far
greater because work is interrupted, or not even begun until afterward. For
promoted employees and new hires at relatively high organizational levels, and
for certain technical specialists, cost is considerable because extended socialized
training within or outside the organization is needed. However the benefits may
be expected to outweigh costs, even when the employer pays all expenses.

Varying cost:

For the employer, separation and replacement costs tend, to match the
organization level. Therefore, voluntary quits by high level employees are an
expense that deserves serious study. In this connection, researchers have found
that more than 40% of M.B.A. degree holders had left their first employer within
5 years although their starting salaries had been high.

Separation cost:

34
These include wasted technical learning, experience as an organization member,
increased operating expenses such as higher rates for accident and unemployment
insurance, and perhaps also severance pay. In addition, in completed work can be
costly. Loss of an able manager or executive may be even more expensive.

Replacement cost:

These cost duplicate those listed earlier for new hires. But items can be
eliminated and others reduced, by promotion from within the organization internal
mobility. However, the vacancy this creates may require a new hire or a second
promotion.

The loss of production in the interval between the separation of the old employee
and replacement by new;

The production equipment is not fully utilized during the hiring interval and the
training period;

Over time pay result from an excessive number of separations causing trouble in
meeting contract delivery dates.

Cost of non-discrimination:

According to a study turnover rates among earlier hard-core workers were 60

percent twice as high as the average and training time was twice as long. Many
managers who have set up affirmative action programs have found that, during
the learning period, costs tend to be greater for previously unemployed

individuals than for persons from more privileged backgrounds. Blacks or whites
who have never before associated regularly with other races may need close and

35
skillful supervision to help them resolve their inner tensions and adjust to
organizational requirements.

Until these disadvantaged newcomers will make all the necessary

accommodations, and regular employees will learn to work productively and
comfortably with them, additions costs may show up in prolonged substandard
performance, avoidable accidents, time-consuming arguments, and even fighting.
And unless these costs can be reduced, unless these cost reduced the whole
separation replacement cycle must be repeated.

Evaluating employee separations

Employee separations are sometimes initiated by employees and other times by

employers, managers can evaluate their effects by focusing on the retained
workforce. Typically, they evaluate employee separations solely by the quality of
employees who quit, resign, are discharged, or are laid off. Such evaluation
approaches are severely limited because they fail to account for the efficiency and
equity consequences of employee separations.

Efficiency: Separations and programs to manage them can be costly. Separation

involves activities such as exit interviews, outplacement assistance, counseling
and severance pay, as well as requiring administrative and clerical support. Such
cost can easily amount to thousands of dollars per separation. Research cites
these costs often as arguments for the harmful effects of some separations, such as
quits. However they emphasize costs less strongly in discussions of other
separations. Yet, costs are clearly applicable to all separations. Although
managers can reduce separation costs by more efficiently managing the separation
process, they can often use cost figures to argue that separations especially quit
should always be reduced

36
Productivity: Quits are not necessarily harmful to the organization. Quits can be
functional when they improve the productivity of the work force by removing
poor performers, or allow replacement of highly paid employees with newer and
lower paid employees of similar ability, the notion that separations can improve
work force productivity applies not only to quits, but to all separations. If
employee manages separations so that the most valuable performers are retained,
the productivity benefits can be substantial. The magnitude of these effects
depends on the quantity and quality of retained work force. This perspective
suggests that human resource managers would do well to look beyond simply the
quantity and cost of separations, adopting an evaluation framework that
encompasses productivity as well.

Equity: Employee separations are both a result and cause of equity perceptions.
Quits appear to be related to employee satisfaction and work attitudes. Moreover,
the manner in which organizations dismiss, retire and lay off employees serves as
one index of their commitment to fairness and equity. Government at the local
state, and federal levels carefully monitor the effects of separations on
communities and minority group representation. Discharges are becoming more
vulnerable to legal challenge as the “employment-at-will” concept is honed by
state courts and governments. The decision to terminate the employment
relationship is one of the most difficulty facing employees and employers.
Clearly, the impact of separations on the attitudes and composition of the retained
work force must encompass equity as well as productivity or cost.

Computing and comparing turnover rates

Turnover can be computed for each type of movement into and out of the
organization.

Employee turnover is commonly expressed in two rates:

37
Separations
Accession

Separations
Termination of employment usually subdivided into as follows:
Voluntary quits-individuals who are absent without authorization for 7
consecutive days(are sometimes less) are usually listed in this category.
Layoffs for lack of work-terminations initiated by the employer because there is a
reduction of employment due to insufficient demand. Such separation is
presumably without prejudice to the employee.
Disciplinary layoff or discharge – this is because of dissatisfaction with an
employee’s performance or conduct. Therefore, both are prejudicial to an
employee’s record. However, if discharge comes before completion of a
probationary period, loss to the employee is less severe because no employment
rights have been acquired.
Permanent or partial disability, retirement or death.
The U.S. bureau of labor statistics uses the following method to compute the
separation rate:

Find the average number of employees by adding together the number on the
payroll on the first and last days of the month. Then divide this total by 2.

Divide the total number of separations during the month by this average
employment figure.

Multiply this number by 100 to get the rate per 100 employees for the month.
Expressed as a formula:

Separation rate(or percentage)= total separation per month

Average number on month’s payroll

38
Accessions:

Hiring new employees or rehiring former employees. Other accessions include

employees called back to work after layoff, transfers from other plants of the
same firm, and former employees returning from military services or other
absences without pay that were not counted as accession.

The rate for accessions, quits, layoffs, and discharges can be computed by same
basic formula.

When the separation rate is subtracted from the accessions rate, the positive or
negative figure shows whether employment is expanding or contracting. If
avoidable turnover is to be measured, the rate is the most useful figure. This may
be subdivided for regular employees with seniority standing and new hires whose
status is probationary.

Total figures for turnover rates by themselves are relatively useless. They
become significant only when compared with rates in other similar organizations.
These comparative figures provide data for a useful chart of turnover trends.
With such a visual display at hand, managers and personnel administrators can
readily take the next step, analyzing associated costs. Direct operating expenses
and administrative costs are available in standard accounting records and
measurable in dollars and cents, other intangible costs are far less susceptible to
exact, quantitative measurement.

39
 CAUSES OF EMPLOYEE TURNOVER

Employee turnover is the outcome of resignations and dismissals

Resignations:

Resignations may be due to such causes as dissatisfaction with working

conditions. Insufficient wages, bad health, sickness, old age, family
circumstances.

Dismissals:

Dismissals on the other hand may occur due to participation in strikes or union
activities, misconduct in subordination, and inefficiency, but dismissal is a lesser
cause of employee turnover.

Market conditions:

Market conditions affect both employee’s decisions to leave and organizations

decisions to reduce their workforce. Dissatisfied employees seem reluctant to
leave during times of high unemployment and more likely to leave during periods
of low unemployment.

Decisions to quit:

Industrialist’s psychologists and others have studied employees quit decisions

extensively. The employee’s decision to quit as a function of:

• The relative attractiveness of the current employment relationship compared to

alternatives.

40
• The perceived opportunities to obtain an attractive alternative employment
relationship.
• Dissatisfaction with the current employment relationship.
• Having difficulties with transportation, working conditions, shift assignments.
• They are leaving for reasons that have nothing to do with work.

41
 SOURCES OF INFORMATION

Often managers do not know why an employee quits. In quits without notice
even the immediate supervisor may not know what prompted this irresponsible
behavior. On the other hand, if employees give reasonable notice and leave in a
good mood, they may tell an immediate supervisor why they want to make a
change.

Exit interviews and questionnaires

To supplement haphazard communication, many companies have a personnel

department representative hold an exit interview when the employee calls for the
last paycheck. In theory, such as interview might seem an excellent opportunity
to check administrative and supervisory practices. Especially when employees
are invited to express their feelings about the job and work situation that they are
leaving, the manner and nature of their response may yield useful insights. It may
even prove possible to salvage a desirable employee at this last moment.
However, the following flaws in exit interviews have been noted:

Often reasons for leaving are multiple and employees cannot easily put them into
words.

Sometimes the chief reason is one which the employee thinks would prejudice an
employer if and when future references are desired.

Again internal stress may make it impossible for employees to talk freely even to
a sympathetic listener.

More reliable and specific information may be obtained in a post-exit interview

held several months after termination, especially if the former employee is then
securely established in a new job. Widespread discrepancies have been disclosed

42
by comparing reasons given by employees in a first exit interview and in a post-
terminal interview.

In view of these findings, it seems clear that a manager concerned about why
employees quit may prefer to ask a second set of questions.

Where are voluntary separations occurring?

What categories of employees are leaving voluntarily?
What early warning signals can be observed?

IMPACT OF TURNOVER

43
The heavy rate of turnover is a great handicap for employees and industry alike,
for it implies a reduction in skill and efficiency on the part of the worker and
reduced output for the industry. However some amount of employee turnover is
inevitable and even natural, particularly when it stems from the retirement of old
employees and accession of new blood. Such turnover may not only be avoidable
but also welcome to some extent.

In some case, it arises because of resignations and dismissals. This turnover is

harmful to the efficiency of the worker and impairs the quality of production. It is
a serious obstacle to the full utilization of a country’s human and material
resources.”

From the employee side, they are not only deprived of various advantages of
continued employment, opportunities of graded pay, bonus, provident fund and
leave, but they have even to purchase their re-engagement; and there is bound to
be less solidarity among workers who move from company to company.

Attention to employee quits usually centers around the quantity or costs incurred
to separate and replace employees. However these factors reflect only part of
issue. The patterns of quits affect the value of retained workforce. If those quits
are most valuable future employees, even a low quit may cause substantial harm.
Conversely, if those who quit are the least valuable future employees, then even
high quit rates may not be cause for alarm.

44
 MEASURES TO CONTROL EMPLOYEE TURNOVER

A high rate of separation is bad both for the employee and the industry. Hence
efforts should be made to reduce it.

The measures to be adopted for the purpose call for a positive policy and
concerted action on the part of employers. Besides any measures conductive to
the employees economic advancement and welfare, as well as measures intended
to provide security of employment, are bound to mitigate the evils of turnover by
reducing their tendency to make frequent visits to their villages and to search for
what is often a mirage of better employment and higher remuneration.

Improvement in the methods of recruitment is one of the radical principal

remedies for excessive employee turnover. But more radical and effective
methods, such as the establishment exchanges, the restriction of the powers of
jobbers and the organization of personnel department and required.

Improvement in working conditions, the adoption of an enlightened policy of

management in respect of wages, transfers and promotions, leaves and holidays,
the provision of facilities for education and training, the promotion of welfare
work, the introduction of unemployment and sickness insurance, gratuity and
pension schemes, will all contribute to make the employee more stable than it is at
present.

Not at least important factors contributing to the stability will be the attitude of
employers and workers organizations and the provision of an effective machinery
of the ventilation and redressal of the grievances of the workers.

Besides a scientific system of recruitment, selection and placement, the provision

of vocational guidance facilities, enlightened supervision and the development of

45
a two-way communication system between the management and the employees
will to reduce the rate of employee turnover.

Mobility of employees among organizations and between functional subunits

within a given organization, confronts managers with many interrelated and
knotty problems.

46
 METHODOLOGY

Scope of study

The study covers the various practices of human resources like training salary
scheme, leave scheme of the organization as well as the communication skills and
interpersonal skills of the employees. The study is confined to one organization
that is Kotak Life Insurance.

Research design:

An attempt was made to study the impact of employee turnover and also to assess
the levels of satisfaction of employees with respect to employee mobility structure
prevailing in the organization.

DATA COLLECTION METHODS:

Primary source:

Primary data source for the study is the questionnaire. The questionnaire consists
of a few closed-ended questions and a few open-ended questions.

Questionnaires were handed to the samplers and collected within a week.

Secondary source:

Data regarding the company profile is drawn from secondary sources like
brochures, company websites, annual reports, opinion of employee constitute.

47
Research instruments used:

Data was collected from employees of different departments using questionnaire.

The questionnaire consists of a few closed-ended questions and a few open-ended
questions. The rating for closed-ended questions was on a five-point scale. The
scale ranges from Strongly agree, Agree, Cant say, Disagree, Strongly disagree.
Respondents were requested to select the most appropriate answer, which suited
him/her the best.

Simple tools like averages, percentages and graphs were computed for the overall
sample on various dimensions

SAMPLING:

The questionnaires were handed to the sales managers and relationship officers in
the organization. The sample size is 30. Questionnaires were handed to the
samplers and collected within a week. The study was undertaken in Kotak Life
Insurance for 45 days.

Data analysis method:

The results collected from the various sources were then scrutinized and
expressed in the form of graphs to be amenable for further analysis. All the
conclusions were drawn based on a detailed analysis of the collected data.

48
 DATA ANALYSIS

1. How is the relation between the management and the employees?

Relation

moderate
good
bad

70% of the total samplers responded that the relationship between the
management and employees is good. It is analyzed that majority of the
employees in the organization are happy with the relationship between the
management and employees.

49
2. My colleagues are cooperative and helpful

70

60

50

40
Series1
30

20

10

0
SA A CS DA SDA

From the sample of 30 employees, 60% of the samplers agreed that their co-
employees are co-operative and helpful.

50
3. My superior is approachable and understanding

70

60

50

40
Series1
30

20

10

0
SA A CS DA SDA

The 60% of total samplers strongly agreed, 40% of samplers agreed that the
superior in the organization is approachable and understanding.

51
4. My job provides personal satisfaction and sense of accomplishment

50
45
40
35
30
25 Series1
20
15
10
5
0
SA A CS DA SDA

51.4% of samplers stated that their job is providing personal satisfaction and
sense of accomplishment.

52
5. Is the organization providing job security?

YES
NO

47% of the respondents answered YES to the statement that organization is

providing job security and 53% responded NO to the statement.

53
6. If YES, mention in what way is it giving job security.

It is analyzed form the total sample that 47% of samplers opinion is that
organization is providing job security by implementing the following methods:

Organization is trying to provide job security to employees by giving regular

increments.

Job security by giving promotions to the employees on the basis of their abilities
in the organization.

7. If NO, mention the reasons.

53% of the respondents answered that the organization is not providing job
security. By the analysis it is found that organization is not providing job security
due to the following reasons.

As Kotak Life Insurance is a private organization it is not in a position to provide

any job security to their employees.

Due to every day changing technology in the industry the organization is not able
to provide job security to their employees.

54
8. Training programmes are conducted for the employees

70

60

50

40
Series1
30

20

10

0
SA A CS DA SDA

64% of the responders agreed to the statement that training programmes are
conducted to the employees. So it is clear that organization is conducting training
programmes to their employees. The organization needs to increase the number
of training programmes to get 100% results from employees.

55
9. Training programmes meet the personal needs of employees and objectives of
the organization.

60

50

40

30
Series1

20

10

0
SA A CS DA SDA

From the total sample size 56.6% of samplers agreed that the training
programmes meet the personal needs of employees and objectives of the
organization.

56
10. Efficiency and hard work are suitably rewarded

60

50

40

30 Series1

20

10

0
SA A CS DA SDA

It is analyzed that 50% of responders agreed that the efficiency and hard work are
suitably rewarded in the organization.

57
11. Are there any recreational facilities.

YES
NO

53.3% of samplers agreed that there are recreational facilities in the organization.

58
12. Management adopts a good leave policy

80
70

60
50
40 Series1
30

20
10
0
SA A CS DA SDA

The 69% of total sample strongly agreed to the statement that management is
adopting good leave policy.

59
13. You are involved in decision making process

50
45
40
35
30
Series1
25
Series2
20
15
10
5
0
SA A CS DA SDA

46.6% of responders agreed that they would be allowed to involve in decision-

making process.

60
14. There is a scope for advancement in the job

50
45
40
35
30
25 Series1
20
15
10
5
0
SA A CS DA SDA

By analysis it observed that 63.4% of samplers opinion is that the organization

need to adopt welfare measures.

61
16. If yes, mention the welfare measures need to be adopted by the organization.

The following are the welfare measures that the organization needs to adopt:

1. Medical facilities to the employees and their family members.

2. Transport facilities to the employees.

3. Educational facilities to the employee’s children.

4. Monetary benefits to the employees.

5. If these welfare facilities are provided to the employees they feel loyal
towards the organization.

62
17. Congenial working atmosphere in the organization.

60

50

40

30 Series1

20

10

0
SA A CS DA SDA

From total sample size 40% strongly agreed, 56.6% agreed that in the
organization there is a congenial atmosphere.

63
18. The monetary incentives are satisfactory.

60

50

40

30 Series1

20

10

0
SA A CS DA SDA

50% of the responders stated that monetary incentives giving by the organization
are satisfactory.

64
19. Is positive stress (writing bonds) required for effective utilization of man
power?

YES
NO

60% of the samplers felt that for the effective utilization of manpower there is
requirement of positive stress.

65
20. The implementation of suggestions given by the employers is a motivator
towards better work.

60

50

40

30 Series1

20

10

0
SA A CS DA SDA

From the total sample size 53.3% of the respondents strongly agreed that the
implementation of the suggestions given by the employers is a motivator towards
better work.

66
21. In your opinion what are the reasons for the employees leaving the
organization.

The employees in the organization stated the following reasons for employees
leaving the organizations.

1. Search of better jobs, better organization, and better salary

2. No provision of requisite training to handle the work process.
3. Inconvenience of traveling.
4. Lack of job security.
5. Management failure to meet the requirements of employees like providing
basic facilities as bonus, increments and medical insurance facilities.
6. For further studies and also for personal reasons.

22. Mention five features in an organization where you would love to work.

The sample of 30 employees stated that the following features in an organization

where they love to work.

1. Congenial working atmosphere.

2. Providing job security
3. Scope for advancement in the job
4. Efficiency and hard work get rewarded
5. Co-operation and constant encouragement of employees by the management
6. Organization needs to maintain excellent quality standards and structure
7. Organization should provide basic amenities and benefits for the welfare of
the employees.

67
23. Suggest any welfare measures to avoid the problem of manpower leaving the
organization.

The following are the measures suggested by the employees to avoid the problem
of manpower leaving the organization.

1. Organization needs to provide basic facilities to the employees

2. Improvement in the training program sessions will some extent support the
employees to stay.
3. Maintaining good relationship between the management and employees.
4. Providing the job security.
5. Motivating and building self-confidence in employees.
6. Looking after the welfare measures.

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 LIMITATIONS OF THE STUDY

1. The sample size is small. The questionnaire could not be administered to

a larger sample due to resources and time constraint.

2. Personal biases tend to arise even after all precautions were taken, as the
employees feel apprehensive to answer the questions in total honesty.

3. Also the questions in themselves may not suffice the cause for which this
research is done.

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 FINDINGS

1. The relation between the management and the employees is good.

2. The staff agreed to the statement “my colleagues are cooperative and helpful.”

3. The majority of the staff agreed that their superior is approachable and
understanding

4. The staff reported that their job provides personal satisfaction and sense of
accomplishment.

5. The organization does not offer job security

8. Training programmes are conducted for the employees

9. Training programmes meet the personal needs of employees and objectives of

the organization.

10. Efficiency and hard work are suitably rewarded

11. Recreational facilities are provided to the employees.

12. Management adopts a good leave policy

13. The employees are involved in decision making process

14. There is no scope for advancement in the job

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 15. The organization needs to adopt welfare measures such as medical and
transport facilities to the employees and also monetary benefits to the employees.

17. There is congenial working atmosphere in the organization.

18. The monetary incentives are not satisfactory.

19. Positive stress (writing bonds) is required for effective utilization of man
power.

20. The majority of employees strongly agreed that implementation of

suggestions given by the employers is a motivator towards better work.

21. The following are the reasons for the employees leaving the organization.
1. Lack of basic facilities in the organization.
2. Search of better job and better pay.
3. Dissatisfaction with the job.

22. The following are the five features in an organization where one would love to
work.
1. Good working conditions and good pay
2. Cooperation and coordination from co-employers.
3. Job security
4. Involving employees in the decision making process.
5. Challenge and competition in the work

23. The following are the measures to avoid the problem of man power leaving the
organization.
1. Providing basic facilities to the employees
2. Up-gradation of policies and positive motivation.
3. Regular training programmes and tours outside the working place.

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 CONCLUSION

Kotak Life Insurance is an organization where the relationship between the

management and employees is good and the superior is approachable. The
management is conducting training programmes to the employees to meet the
employee’s personal needs and also to achieve the objectives of the organization.

But the root causes for manpower leaving the organizations are search for a better
pay and better organization, lack of job security, lack of basic facilities in the
organization, no proper training to the employees to achieve their targets and less
scope for advancement in the job.

It is concluded that the above may be some of the reasons for which the
employees in Kotak Life Insurance are leaving the organization.

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 RECOMMENDATIONS

The management is advised to provide welfare facilities such as medical,

transport, education, monetary benefits to employees so that they feel loyal
towards organization and employee mobility or employees leaving the
organization can be reduced.

The organization is advised to conduct exit interviews when employee calls for
last pay. Especially when employees are invited to express their feelings about
the job and work situation that they are leaving, the manner and nature of their
response may yield useful insights.

To reduce the employee separations, many works-related factors are suggested

that could be effected human resource activities. These factors include pay, role
clarity, satisfying work, improved supervision and improved co-worker
relationships.

Monotony in the organization work leading to heavy physical and mental stress
very often causes employees to stay away from work, so to break their monotony
or boredom the management is advised to implement more recreational facilities
so that the separation rates can be reduced.

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 ANNEXURE

Questionnaire for root cause analysis of manpower leaving the organization

Name(optional):
Qualification:
Designation:
Department:
Total years of experience:

Note: Put a tick mark against the option, which you think is correct.

SA: Strongly Agree

A: Agree
CS: Cant say
DA: Disagree
SDA: Strongly disagree

1. How is the relation between the management and the employees?

a) Moderate b) Good c) Bad

2. My colleagues are cooperative and helpful

a) SA b)A c)CS d)DA e)SDA

3. My superior is approachable and understanding

a) SA b)A c)CS d)DA e)SDA

4. My job provides personal satisfaction and sense of accomplishment

a) SA b)A c)CS d)DA e)SDA

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5. Is the organization providing job security.
a) Yes b)No

6. If YES, mention in what way is it giving job security.

7. If NO, mention the reasons.

8. Training programmes are conducted for the employees

a) SA b)A c)CS d)DA e)SDA

9. Training programmes meet the personal needs of employees and objectives of

the organization.
a) SA b)A c)CS d)DA e)SDA

10. Efficiency and hard work are suitably rewarded

a) SA b)A c)CS d)DA e)SDA

11. Are there any recreational facilities.

a) Yes b)No

12. Management adopts a good leave policy

a) SA b)A c)CS d)DA e)SDA

13. You are involved in decision making process

a) SA b)A c)CS d)DA e)SDA

14. There is a scope for advancement in the job

a) SA b)A c)CS d)DA e)SDA

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15. Does the organization need to adopt any welfare measures.
a) Yes b)No

16. If yes, mention the welfare measures need to be adopted by the organization.

17. Congenial working atmosphere in the organization.

a) SA b)A c)CS d)DA e)SDA

18. The monetary incentives are satisfactory.

a) SA b)A c)CS d)DA e)SDA

19. Is positive stress (writing bonds) required for effective utilization of man
power?
a) Yes b)No

20. The implementation of suggestions given by the employers is a motivator

towards better work.
a) SA b)A c)CS d)DA e)SDA

21. In your opinion what are the reasons for the employees leaving the
organization.

22. Mention five features in an organization where you would love to work.

23. Suggest any measures to avoid the problem of man power leaving the
organization.

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 BIBLIOGRAPHY

Paul Pigors, Charles Myers A. Personnel Administration, A point of view and a

method, ninth edition Page No 217-222

Mamoria C.B. Personnel Management Third edition Page No 302 to 305

George Milkovich T., John Boudreau W., Personnel/Human resource

management, fifth edition Page No 456 to 459 and 461 to 463.

www. Kotak.com

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