A PROJECT REPORT ON DIFFERENT PROCEDURES OF RECRUITMENT & SELECTION ADOPTED IN ICICI PRUDENTIAL LIFE INSURANCELtd. (In the partial fulfillment of the Post Graduate Degree in MBA)
Under the guidelines of : Miss. Naaj grovara FACULTY ACULTY MEMBER OF MMIM MULLANA (AMBALA)
Submitted By : Pawan kumar Roll No: 1571/B MBA 2nd Year
Submitted to : M.M. INSTITUTE OF MANAGEMENT APPROV ED BY AICTE AND Affiliated to APPROVED Kurukshetra University Kurukshetra (Session 2006-08)
PREFACE M.B.A. is stepping-stone to Management career. In order to achieve practical, positive and concrete results the theoretical knowledge must be supple supplemen mented ted with with exposu exposure re to real real enviro environme nment. nt. MBA combine combiness both both theory and its practical applications as its major content of study in the field of management .Theoretical knowledge without practical knowledge is of little value. Theoretical studies in classroom are not sufficient to understand the functioning of marketing concepts. Therefore, it becomes necessary to under undergo go any any projec projectt work. work. Practi Practical cal projec projectt supple supplemen ments ts the theore theoretic tical al studies i.e., it covers what is left uncovered in the classroom. It exposes a student to invaluable treasure of experiences. I took my project work with ICICI Prudential. Project work is a part of our curriculum, which helps us to correlate our theoretical concepts with practical experiences. The topic that I have have take taken n for for proj projec ectt is “ CRITICAL STUDY OF RECRUITMENT POLICIES AND PROCEDURE ADOPTED IN ICICI PRUDENTIAL LIFE INSURANCE Ltd.” has been suggested to me by Human Resource
Department (ICICI Prudential). Accomplishment and achievement of goals is the the majo majorr aim aim of any any orga organi niza zati tion on.. Thes Thesee goal goalss are are achi achiev eved ed by properrecruitme tment
of
employees.
Recruitment
of
quality
dedicatedemployees plays an important role in achieving these goals.
2
and
CERTIFICATE
3
ACKNOWLEDGEMENT “Our personalities are based on the foundation of eduvation imparted by one teacher who are next to God.”
I wish to thank Mr. Sunil kumar arora(Unit manager of ICICI Prudential LIC Ltd. Ltd.)) for for givi giving ng me this this oppo opport rtun unit ity y to do my diss disser erta tati tion on with with ICIC ICICII Prudential LIC Ltd. I also wish to acknowledge him for his continuous and unmatched guidance till the completion of the project. I also be thankful to miss Naaj gorovara(Faculty Member of MMIM) who is my project guide for giving me proper guideline and support during my research project. I also express my gratitude aff of ICICI Prudential LIC Ltd. for providing me valuable inputs, supervision and cooperation throughout the period of my resear research ch projec project, t, which which helped helped me in succes successfu sfull comple completio tion n of my project. I would also like to thank Mr. Adarsh Aggarwal who guided and supervises me throughout my research project and remained an active supporter from the beginning till the end.
PAWAN KUMAR 1571/B MBA 2nd Year (Session 2006-08) 4
DECLARATION SSI hereby affirm and declare that this project work on “Recruitment” has been completed by me under the guidance and supervision of Mr. Sunil kumar arora and embodies the original piece of work and has not been
copied and submitted to any other university or institution. My indebtedness to other works/publications has been duly acknowledged.
Sunil kumar arora
PAWAN KUMAR
Unit manager
Roll No. – 1571/B
ICICI Prudential
COURSE – M.B.A.
New Delhi Branch
Session 2006-08
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CONTENTS TOPIC
PAGE No.
1.
EXECUTIVE SUMMARY
01
2.
INTRODUCTION
03
RESEARCH METHODOLOGY Objectives Hypothesis Research design Sampling plan Sampling unit Sampling design Limitations
06
4.
INDUSTRY PROFILE
12
5.
COMPANY COMPANY PROFILE Product profile Management SWOT analysis
22
6.
RECRUITMENT RECRUITMEN T & SELECTION
30
7.
FINDINGS & ANALYSIS
44
3.
8. CONCLUSION
59
9.
78
RECOMMENDATIONS
1O.
BIBLIOGRAPHY
81
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QUESTIONNAIRE
NAME: …………………………………………. DESIGNATION: ………………………………. COMPANY: …………………………………….
Q1. Minimum educational qualification for an advisor? 1) 10 th 2) 12th 3) Graduation
Q2. Basic criteria for success of an advisor RANKWISE? 1) 1)Ag 1)Agee abo above ve 25 2)Married 3)Graduate 4)living in the same city for more than 5 yrs
Q3. Which age group advisor working best? 1)19-30 yrs 2)31-40yrs
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Q4. Different ways of recruitment of advisor in icici pru. Rankwise? 1)Through internal contest 2)Walk in interview 3)Marketing technique 4)Through summer trainees
Q5.Give rank according to you for segmentation of advisor?
1)Businessman 2)serviceman(pvt)
Q6. Give rank for different ways ways to promote business business for advisor? 1)Additional commission & salary 2}Club membership 3)Offering free insurance
Q7.Does high fee of licensing has negative effect on advisors recruitment? 1. Yes 2 . No
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Q8.Give rank to inspirational factor to promote business for advisor? 1)Commision & rewards 2)Joint field visits 3)Motivational session 4)Participation in contest
Q9.Give rank to different distribution channel of icici pru.? 1)Bank assurance 2)Direct marketing 3)Tide agency 4)corporate agents
Q10.Training Q10.Training required for f or effective advisor 1). 150 hrs 2)100hrs
Q11. Criteria for giving rating to effective advisor? 1)By communication skil 2)By working skill
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Q12. Are Are you getting timely & regularly instruction & support from your boss? 1)Strongly agree 2)Agree Q13.Do you update your advisor about new product & strategies regularly? 1)Yes 2)No Q14) Is there any role of refrences(contacts) with more people? 1)Yes 2)No Suggestion:-……………………………………………………………… …................ ……………………………………………………………………………… …….. ………………………………………………………………………… ………….
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EXECUTIVE SUMMARY
11
EXECUTIVE SUMMARY ICICI Prudential Life Insurance co. ltd is the #1 private life insurers in the world. world. The projec projectt was undert undertake aken n to study study the dynami dynamics cs of insura insurance nce agency development and need of life insurance in human life. The study of ICIC ICICII Prud Pruden enti tial al life life grou group p is unde undert rtak aken en to unde underst rstan and d the the serv servic ices es provided by ICICI Prudential to their customers as well as the insurance advisors recruitment process adopted by ICICI Prudential Life Insurance Company. The project was studied to know how ICICI Prudential life is promoting their insurance advisors in the field helping them to bring more and more bus busin ines esss by the the mean meanss of hand handso some me comm commis issi sion on stru struct ctur ure, e, rene renewa wall commissions, rewards, trophies and certificate, honoring them in front of othe otherr insu insura ranc ncee advi adviso sors. rs. ICIC ICICII Prud Pruden enti tial al also also prov provid ides es othe otherr futu future re prospects to their advisors. This all not only increases the efficiency of the winners winners but also of those who have under under performed. performed. Through this process ICICI Prudential also win customers by strong commitment to life insurance advisors.
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INTRODUCTION
13
WHAT IS RECRUITMENT AND SELECTION ? Recruitment refers to the process of finding possible candidates for a job or
function, usually undertaken by recruiters. recruiters. It also may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means: through online, newspapers, using newspaper dedicated to job advertisement, through professional publication, using using advert advertisem isement entss placed placed in window windows, s, throug through h a job center center , throug through h campus graduate recruitment programs, etc.
Suitability for a job is typically assessed by looking for skills, e.g. communication skills, typing skills, computer skills. Evidence for skills required for a job may be provided provided in the form of qualifications qualifications (educational (educational or profession professional), al), experience in a job requiring the relevant skills or the testimony of references. Employment agencies may also give computerized computerized tests to assess assess an individual's individual's "off-hand" "off-hand" knowledge of software software packages or typing skills. At a more basic level written tests may be given to assess
numeric and literacy. A candidate may also be assessed on the basis of an interview. Sometimes candidates will be requested to provide a résumé (also known as a CV) or to complete an application form to provide this evidence.
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The Selection Process are reviewed to identify identify applicants applicants 1. Application Review. Applications are meeting the minimum qualifications listed in the job announcement. Applicants who do not meet the minimum qualifications are notified by mail. Applicants who do meet meet the minimum qualifications proceed proceed to the examination process.
2. Examination. When filling a vacant position, the State of Colorado requires the use of an examination process to identify the top three cand candid idat ates es.. If thre threee or fewe fewerr cand candid idat ates es meet meet the the mini minimu mum m qualifications of the position vacancy, the minimum qualifications are the exam and all of the applicants are referred to the supervisor for interview. interview. However, However, if more than three applicants applicants meet the minimum qualifications, an examination must be used to determine the top three candidates candidates.. The number number and types of exams chosen chosen for this process will depend on the job class of the position vacancy and the total numb number er of qual qualif ifie ied d appl applic ican ants ts on the the init initia iall list list.. The The top top thre threee candidates identified via this examination process will be referred to the supervisor of the position vacancy for interview. interview.
3. Supervis Supervisor or Review Review and Considera Consideration tion.. The The supe superv rvis isor or of a position position vacancy vacancy makes the hiring decision. decision. Typically ypically,, supervisors supervisors interv interview iew each each of the candidat candidates es on the referra referrall list. list. Howeve Howeverr, a supervisor is not required to interview each of the candidates before making a hiring decision. A review of each candidate’s candidate’s resume and an inte interv rvie iew w with with the the cand candid idat atee who who is deem deemed ed the the best best fit fit for for the the position is sometimes sufficient to make a hiring decision.
Afterr caref careful ul cons consid ider erat atio ion n of each each cand candid idat ate, e, the the 4. Job Offer. Afte superv superviso isorr makes makes the final decisio decision. n. Depend Depending ing on type of work performed in the position, a job offer may be contingent on the results of a drug drug test, test, physic physical al examin examinati ation on and/or and/or crimina criminall backgr backgroun ound d check.
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OPPORTUNITY FOR THE ADVISOR
1.
No Startup Capital Required: The advisor of ICICI have the best opportunity that they don’t require any kind of startup capital for the work that have to perform.
2. Flexib Flexible le Working orking Environme Environment: nt: The second second opportun opportunity ity for the advi adviso sorr is that that they they are are bein being g prov provid ided ed by the the most most flex flexib ible le working environment. They are able to do work according to there convenience.
3. Be You Yourr Own Boss: Boss: The next best opport opportuni unity ty for the advisor advisor is that they don’t have any boss on there head they are there own boss, they can choose there own way for doing things.
4. Unlim Unlimit ited ed earn earnin ing g pote potent ntia ial: l: The The next next oppo opport rtun unit ity y is that that an advisor can earn unlimited this all depends upon the potential of that agent, no one is there who can stop them except till they stop themselves.
5. To Be Part Part of a Worldrld-Cl Claass Team: eam: Last Last but but not not the the leas leastt opportunity for the advisor is that they get a chance to become a part of world class team that is ICICI.
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RESEARCH METHODOLOGY
17
OBJECTIVES 1. To study the the recruitment recruitment policy policy of of ICICI Prudentia Prudential. l.
2. To find out suitabl suitablee candidates candidates for the the post of advisor advisor..
3. To study about the competit competitors ors of ICICI ICICI Prudentia Prudential. l.
IMPORTANCE OF MY STUDY This study is very significant in a sense that I examine to focus throughout an practical application that all the managers need to deal with there HR relations and responsibilities. This study is designed to provide accurate and authorative information in regard to the subject matter covered. Theses are interesting time for HR Managers.
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HYPOTHESIS The report is on the basis of fallowing hypothesis: hypothesis:
•
The HR Practices being being employed employed by the organization are contributing towards its growth. The employees working in the organization are satisfied with the HR
H R Practices includes :
Recruitment
Selection
Planning
Training Training and development
Performance Appraisal
Payroll system
Retirement Benefits
Incentive System
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RESEARCH DESIGN The research design is a pattern or outline of a research project’s work. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the detail of project. The present study being conducted follow followed ed a descript roducces a pict icture of the the descriptive ive resear research ch design design. It produ phenomenon in which the decision maker is interested. As the data would be response from a sample containing large number of soursection” of the situation. Design of descriptive studies includes the nature and source of data, the nature of the expected result and the analytical method
SAMPLING PLAN The samples are taken on the basis of Random Sampling Plan
SAMPLING SIZE The sample size is 30.
SAMPLING UNITS The sampling sampling unit includes private manager of ICICI PRU.
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DATA COLLECTION METHODS Both Both prima primary ry ands ands seco second ndar ary y sour source cess of data data are are used used to coll collec ectt the the information. SECONDRY DAT been collec collected ted throug through h publis published hed DATA has been data. Published data is available in books, magazines, reports, bulletins and in various sites on net. The PRIMARY DATA is collected by personnel interview (structured) of the HR Managers of different life Insurance companies in Private sector. A survey survey was conduc conducted ted keepin keeping g in view view the object objective ive of the study study.. The questionnaire is consisted of both open ended and close ended questions
SAMPLING DESIGN The selection of companies is based on judgmental sampling as the sample is too large.
DATA ANALYSIS AND INTERPRATION For the purpose of analyzing the raw data it is summarized into a master table from this table the results have been carried out. The questions, which are alternative choices, are analyzed by taking percentage. In case of other questions, mean score and percentage have been calculated, the question for which there are specific answers the range is clubbed and percentage habeen calculated. In case of exploratory questions the general suggestions have been summarized.
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LIMITATIONS In every project/study undertaken limitations arises and are inevitable.
● This project report is based on the information given by the the head or Unit Manager’s of the centers. The information is also collected through some magazines, newspapers and e-mails. Some respondents were not interested in giving answers as they were appearing to be busy. busy. ●In fact, fact, this this projec projectt report report involv involves es human human process processing ing and analysis analysis. Therefore, there are chances of human error. ●One of the major limitations is time bounded ness. The Management Trainees are restricted to a training of 6-8 weeks only ,and much of the time is spent in Coaching and training itself and not in the field. ●Trainees are provided with limited resources. No financial aid or stipend is being paid to them, so they can not spend much on meetings with the potential customers. It can be also treated as a limitation of Cost Bounded ness.
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INDUSTRY PROFILE
INSURANCE SECTOR IN INDIA 23
The insurance landscape in India is undergoing a tectonic shift. Despite its more than teeming one billion populations, India still has a low insurance penetration of 1.95 percent, 51 st in the world. Although India boasts a saving rate or around 25 percent, less than 5 percent is spent on insurance. With the entry of competition, the rules of the game have begun to change. The market is already beginning to wetness a wide array of product from players whose number is set to grow. In such a scenario, the appeal of insurance is the benefits of protection of lives & assets from insurance products. Only 22% of the insurable population possesses life insurance. What’s What’s more, in a country country over billion billion people, life insurance insurance premier forms only 1.8% of GDP indicate the extent of underinsurance. Recognizing the huge potential of the market and the need to make insurance, particularly the life insurance, available on a wider scale, the government opened the industry to private playe players rs in 1999 1999 and was floode flooded d with with applic applicati ations ons.. Major Major intern internati ationa onall insurance-Prudential and Standard Life of UK, Sun life of UK, Sun life of Canada, AIG, MetLife and New York Life of the US, to name a few tied up with leading companies of India to reach out this vast market. Today, the Indian insurance industry has a dozen of private players, each of which is making strides in raising awareness level, introducing innovative produ products cts and increas increasing ing the penetr penetrati ation on of life life insura insurance nce in the vastl vastly y underinsured country. The success of effort is noteworthy – private insurers captured nearly 9 percent of new business premium income in tow years of operations. The biggest beneficiary of the competition amongst the life insurers is the cons consum umer er.. A wide wide rang rangee of prod produc ucts ts,, cust custom omer er focu focuse sed d serv servic icee and and professional advice has become the mainstay in the industry. It is seen a dramatic increase in customer awareness, with penetration cutting across the socio-economic class and attracting people who have never purchased insurance before. With the heightened awareness comes a willingness to eval evalua uate te life life insu insura ranc ncee as an inte integr gral al part part of fina financ ncia iall plan planni ning ng kit kit a significant change nearly attuned, where insurance is purchased as a tax saving pool.
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Not only has there been shift in the perception of life insurance, but also the way it is sold. From being a purely advisor driven business, the sector has seen the emergency of a number of channels, including bank assurance, corpor corporate ate agents agents and direct direct market marketing ing.. These These channe channell though though very very new, new, quickly gaining importance because they present customers multiple ways of approaching life insures. There is also a huge improvement in service attitude ad delivery making a customer a focus of each initiative. Technology has come to aid giving the platform; the reach and the ability each service each customer seamlessly. Multip Multiple le touch touch points points have have emerg emerged ed contac contactt center centers, s, e-mail e-mail,, facsim facsimile ile,, websites, snail-mails etc. On the product front, there are two trends that stand out. The days of high guaran guarantee teed d return return produc products, ts, are over over. Produc Products ts are now priced priced flexib flexible, le, realistically, sustain ably. LIC of India has witnessed a decline in first year premium in FY03 while private players has witnessed a more than three fold premium growth because of reduction of guaranteed return products.
First year premium income (Rs. in Crores) Private Players LIC of India
2002-2003
2001-2002
982
297
11,343
14,843
The other major change is the introduction of liquid, transparent and flexible policies, with linked products leading the bridge. While such products are more complex, there is a distinct set of investors who fond such products appealing. As the market matures, the demand for unit link and products will only increase.
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SHAR SHARE E OF INSUR INS URAN ANCE CE SECTOR SEC TOR IN VARIOUS PUBLIC DEPOSITS
60 MUTUAL FUNDS
50 40
EQUITY SHARES
30
FIXED FIXED DIPOSITS
20 INSURANCE
10 0
S S E D S E T C I N R N S A U A O F H R P I S L U D A S Y U T N D I I T E U U X I M F E Q
INSURANCE
51.79 %
MUTUAL FUNDS
15.45 %
EQUITY SHARES
8.95 %
FIXED DIPOSITS
23.81 %
Collaboration of Indian Companies with Foreign Companies 26
S.No S.N o
Indian Ind ian Compani Com panies es
Foreign For eign partner par tnership ship
1.
Kotak Mahindra
Chubb
2.
Tata Group
AIG
3.
Sundram Finance
Winterthur
4.
Sanmar Group
GIO of Australia
5.
Spic
Metlife
6.
ILFS
Cigna
7.
Alpic Finance
Allianz
8.
20th Century
Canada Life
9.
Vysya Bank
ING
10.
Cholmandalam
Axa
11.
SB I
Alliance Capital
12.
HDFC
Standard Life
13.
ICICI
Prudential Plc
14.
Hindustan Times
Commercial union
15.
IDBI
Principal
16.
Max India
New Yark Life
Insurance Corporation of India 27
The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt f elt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed cros sed 7000.00 crore Sum Assured on new policies.
AVIVA LIFE INUSRANCE 28
Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 40 million-customer base worldwide. It has more than £364 billion of assets under management. In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995. In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the the coun countr try' y'ss lead leadin ing g prod produc ucer er of trad tradit itio iona nall heal health thca care re prod produc ucts ts.. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With With a strong sales force of over 28,000 Financial Planning Advisers Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to establish its credibility in the market. The FHC is a free serv servic icee admi admini nist ster ered ed by the the FPAs FPAs for for a need need-b -bas ased ed anal analys ysis is of the the customer’s long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in Bancassurance successfully in India. Currently, Aviva has Bankassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal and Andhra Pradesh .
BIRLA SUN LIFE INSURANCE 29
Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, BSLI has cemented its position as a leading player in the Private Life Insurance Industry. There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering offering convenient convenient channels of purchase purchase to customers. customers. Web-en Web-enabled abled IT systems for superior customer services act as its back bone. Corporate governance and a high degree of transparency in all business practices and procedures First to have an operational Business Continuity Plan. Strong fundamentals based on the Aditya Birla group's local insight and Sun Life Financials's global expertise.
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ING Vysya Life in India ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force. It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore.
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RELIANCE LIFE INSURANCE
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’ India’ss leadin leading g privat privatee sector sector financia financiall service servicess compan companies ies,, and ranks ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Reliance Capital Capital has interests interests in asset management management and mutu mutual al fund funds, s, stoc stock k brok brokin ing, g, life life and and gene genera rall insu insura ranc nce, e, prop propri riet etar ary y investments, private equity and other activities in financial services. Relian Reliance ce Capita Capitall Limite Limited d (RCL) (RCL) is a Non-Ba Non-Banki nking ng Financ Financial ial Compan Company y (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial serv servic ices es sect sector or in Indi Indiaa and and aims aims to beco become me a domi domina nant nt play player er in this this industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance I nsurance solutions to individuals and Corporate.
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COMPANY PROFILE
33
PROFILE COMPANY NAME
: ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.
INDIAN PARTNER
: ICICI BANK
FORIGN PARTNER
: PRUDENTIAL PLC
EQUITY RATIO
: 74:26
COMMENCEMENT OF OPERATION
:
19TH DECEMBER
2000 FIELD OF OPERATION: LIFE
GENERAL DONE BY ICICI LOMBARD HOME ADDRESS
ICICI ICICI PRUD PRUDEN ENTIA TIAL L LIFE LIFE INSUR INSURAN ANCE CE COMPANY, ICICI PRULIFE TOWERS, 1089, Appasaheb Marathe Marg, Prabhadevi,MUMBAI- 400025
:
CEO OF THE THE COMPANY COMPANY : Ms. SHIKHA SHARMA
Prudential PLC 34
Established in 1848, Prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management, and more than 16 million customers customers worldwide. worldwide. Prudential Prudential has championed championed customer customer-centr centric ic prod produc ucts ts and servi service ces, s, su suppo pporte rted d by over over 60 60,0 ,000 00 staff and agents across the region Prudential has brought to mark market an integra integrated ted range range of financ financial ial servic services es produc products ts that now includ includes es life life assuran assurance, ce, pension pensions, s, mutual mutual funds, funds, banking banking,, invest investment ment managem management ent and general general insuran insurance. ce. M&G was acquired by Prudential in 1999 and is the Group's UK and European fund manager, responsible for managing over £112 billion of funds (as at 31 March 2004). Laun Launch ched ed by Prude rudent ntia iall in 19 1998 98,, Egg Egg is an inno innova vati tive ve financial services company, with over 2.5 million customers with a market share of nearly 5% of UK credit card balances. In Asia, Prudential is UK's largest life insurance company with a vast network of 23 life & fund management operations in 12 countries serving 4 million customers- China, Hong Kong, India India,, Japan Japan,, Indon Indones esia ia,, Korea orea,, Mala Malays ysia, ia, the Ph Phil ilip ippi pines nes,,
35
Singapore, Taiwan, Taiwan, Thailand & Vietnam. Vietnam. In the US, Prudential Prudential owns Jackson National Life, a leading life ins. company & has more than 1.5 million policies and contracts in force.
Commitment & Aim According to them- our commitment to the shareholders who own Prudential is to maximise the value over time of their investment. We do this by investing for the long term to dev develop and bri bring out the the bes best in our people and our businesses to produce superior products and services, and hence superior financial returns. Our aim is to deliver top quartile performance among our international peer group in terms of total shareholder returns. At Prudential our aim is lasting relationships with our customers and policyholders, through through products products and servic services es that that offer offer value value for money money and and secu securi rity ty.. We also also seek seek to enha enhanc nce e our our Comp Compan any' y's s reputation, built over 150 years, for integrity and for acting responsibly within society.
EQUITY
36
The Company has an equity base which stands at a whopping figure of Rs. 6.75 billion, with ICICI Bank and Prudential Plc. holding 74% and 26% stake respectively. respectively. In the first quarter of the financial year 2006-07, company has crossed a new milestone of insuring lives more than 2.5 million policy holders. and premium income in excess of Rs. 1185 crore the company has network of about 60,000+ advisors as well as 12 bank assurance tie-ups at present. The company has got 113 branches across 95 different locations across the country.
DISTRIBUTION ICICI ICICI Pruden Prudentia tiall has one of the larges largestt distri distribut bution ion networ networks ks amongs amongstt private life insurer in India, having commenced operations in 95 cities and towns in India. These are Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Bang Banglo lore re,, Bhat Bhatin inda da,, Bhop Bhopal al,, Bhub Bhubha hane nesw swar ar,, Chan Chandi diga garh rh,, Chen Chenna nai, i, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Hyderabad, Hugli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochin, Kolkata, Kota, Kottayam, Locknow, Ludhina, Madurai, Manglore, Merath, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Rajkot, Ranchi, Surat, Thane, Thrissur, Trichy, Trivandrum, Vashi, Vijaywada and Vizag.
BANK ASSURANCE The company has twelve bank assurance tie-up, having agreements with ICICI Bank, Allahabad Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, and Punjab and Maharashtra Co-operative Bank, Shamro Vithal Co-operative Bank and Jalgaon People’s Co-operative Bank, as well as some corporate agents. It has also tied up with organizations like Dhan Dhan for for dist distri ribu buti tion on of Sala Salam m Zind Zindag agi, i, a poli policy cy for for the the soci social ally ly and and economically underprivileged sections of society.
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VISION ●
To be Dominant Life & Pension Player build build on on trust by world world class People & Services. ● The vision of the company company clearly states that it wants to become the dominant Life and Pension player built on trust by world-class people and services.
The Company hopes to achieve the above-mentioned objective by: 1. Unders Understan tandin ding g the needs needs of custom customer’ er’ss and offerin offering g them them superi superior or products and services. 2. Levera Leveragin ging g techno technolog logy y to servic servicee custom customer er quickl quickly y, effic efficien iently tly and conveniently 3. Dev Develop elopiing and and imp impleme lemen nting ting supe superi rior or risk risk mana manag geme ement and inv investm estmen entt stra strate teg gies ies to offer fer sust sustaaina inable ble and and retu return rnss to the policyholders. 4. Providing Providing an enabling enabling environme environment nt to foster foster growth and and learning learning for the employees. 5. And above above all, buildi building ng transparen transparency cy in all the the dealings. dealings.
The success of the company will be founded in its unflinching commitment to 5 core values – Integrity, Customer Firs, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of the people and the way the company works.
TECHNOLOGY The company continuously leverages on the state of art technology that it possess. The modern and updated technology infrastructure helps not only to provide superior quality of products and services to the customers but at the same time helps in creating a prudent reward and recognitions program for the company itself. The company can leverage on this advantage to drive out
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one of the best CRM in the industry at the present. The parent company also is in a move to duplicate the ICICI model in order would market. It is nothing but a result of the superb all-round performance that the company has has show shown n in all all the the fact factss of busi busine ness ss and and over over the the peri period od.. But But more more important has been the continued focus on growth and the strife for results from the workforce itself.
The ICICI Prudential Edge The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1. Our Our produ roduct ctss have ave been been deve devellope oped afte afterr a cle clear and thor thorou oug gh understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products 3. Robust risk management and underwriting practices form the core of our business. With With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 39
5. Last but definitely not the least, our 16,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
MANAGEMENT BOARD OF DIRECTORS The ICICI prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K. V. Kamath, Chairman Mr. Mark Norbom Mrs. Kalpana Morparia Mrs. Kevin Holmgren Mr. M. P. Modi Mr. R. Narayanan Ms. Shikha Sharma, Managing Director
MANAGEMENT TEAM Ms. Shikha Sharma, Managing Director & CEO Mr. Mr. N.S.Kanan, Executive Director Mr. Bhargav Dasgupta, Dasgupta , Executive Director Ms. Anita Pai, Pai, EVP – Customer Service & Technology Mr. Azim Mithani, Mithani , Chief Actuary Mr. Puneet Nanda, Nanda , Chief Investments Officer
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SWOT ANALYSIS OF ICICI PRUDENTIAL
•
ICICI PRUDENTIAL is the largest private player in the insurance industry in India, with a market share of around 36% amongst the private players.
•
ICICI PRUDENTIAL has has deposited a paid up capital of Rs. 925 crores with IRDA IRDA as a cautio caution n deposi deposit, t, the highes highestt amongs amongstt all the life life insura insurance nce companies in India whereas LIC has deposited only 60 crores so far.
•
ICICI PRUDENTIAL is the first life insurance company to offer ECS debit facility.
•
ICICI PRUDENTIAL is the first company to introduce unit linked life insurance and pension products. Presently the maximum numbers of ranges are under ULIP like life insurance, investment as well as pension plans.
•
Its Venture funds management co. Ltd is India’s largest venture capital company.
•
PRODUCTS: Flexibility to switch your fund value at your own discretion 4 times a year viz Maximiser, Protector, Balancer, Preserver.
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Greater transparency- policyholder knows what is happening to his money and where the company has invested the money.
Liquid Liquidity ity option option:: you can can make make parti partial al or compl complete ete withdr withdrawa awals ls anytime after 3 years.
Life insurance plans are eligible for deduction under Sec. 80C.
The proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.
Riders are provided to give the policyholder the additional protection at marginal cost- Accident and Disability rider, Critical Illness Rider, Accidental benefit rider.
Loan against the policy : After the policy has acquired a surrender value one can avail loan against the policy.
WEAKNESSES •
Industry in nascent stage.
•
Rural areas still not covered.
•
Not very well known among the Indian population.
•
Lack of credibility in the public because ICICI being a private player.
•
Premiums are high as compared to its competitors.
•
Very few branches in the country.
•
PRODUCTS:
The policy doesn’t have the surrender option before the 3rd year.
Plan do not offer any guarantee or assured return
The product profile is not very comprehensive.
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Mortality, management and administrative charges are sky-scraping as compared to its competitors.
OPPORTUNITIES •
Liberalization of Indian economy.
•
As the industry is growing the whole market is virgin.
•
The whole private sector is open to be tapped even though the competition is fierce from government owned insurance companies.
•
It’s a volume business that is even if the company has few good corporates the turnover ceases to increase by manifold.
•
PRODUCTS:
Preser Preserver ver fund fund looks looks good good due to comfor comfortab table le liquid liquidity ity in the economy and there is little chance of any hike in short-term rates by RBI.
Finance Finance minister minister unveiled unveiled a budget-fav budget-favoring oring consumer consumer spending, spending, boosting demand and therefore higher economic growth
THREATS •
The Govt. players will become aggressive thus growth is going to be tough.
•
Entry of other new players is not ruled out
•
Apprehension towards ICICI PRUDENTIAL being a private life insurance company.
•
We expe expect ct the the indu indust stry ry to rati ration onal aliz izee in futu future re that that is merg merger erss and and acqu acquis isit itio ions ns will will happ happen en whic which h will will impa impact ct the the indu indust stry ry and and ICIC ICICII PRUDENTIAL fortunes.
•
PRODUCTS:
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Past Past perf perfor orma manc ncee of thes thesee plan planss is not not indi indica cati tive ve of the the futu future re performance of the plan
The sum invested in the funds is subject to market risks and there can be no assurance that the objective of the plans will be achieved.
All benefits payable under the policy are subject to the tax laws and other financial enactment, as they exist from time to time
RECRUITMENT AND SELECTION
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THE COMPANY Recr Recrui uitm tmen entt is a vita vitall issu issuee for for orga organi niza zati tion onss to get get righ right. t. With ith skil skills ls shortages in some key areas and the push for improvement following the competition, organizations need to make sure they have the right people and enough of them. There are many aspects to improving service delivery, but recruiting the workforce with the capacity to deliver is a vital foundation. There is much innovative work already going on in organizations and there are encouraging signs of improvement. Many of the issues surrounding building capacity relate to the way that people are recruited and developed within organizations. Organizations need to be able able to deli delive verr impr improv oved ed serv servic ices es with within in a curre current nt frame framewo work rk of shorta shortage ge of some some key skills skills and tight tight financ financial ial constr constrain aints. ts. Recrui Recruitme tment nt processes therefore need to fit in with the overall business needs of the orga organi niza zati tion on thro throug ugh h a caref careful ully ly plan planne ned d and and syst system emat atic ic appr approa oach ch to workfo workforce rce plann planning ing,, accomp accompani anied ed by consid considera eratio tion n about about how servic servicee deli delive very ry is made made and and whet whethe herr new new ways ways of work workin ing g woul would d be more more
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effective. The best responses to recruitment problems are ones that moved away from a primary focus on recruitment to a holistic focus on people’s whole work experience. Some of the issues issues that that demand demand organ organiza izatio tion’ n’ss attent attention ion are mentio mentioned ned below. These are those issues, which if dealt properly and sorted out in time, really helps an organization to attract right kind of talent. With the help of this industry survey of mine, I’ve tried to understand the policies of different organizations in these areas as regards recruitment.
within the organization and the work tasks ta sks and outputs. A person person specification tends to set out in more detail what sort of skills, attributes, experience and qualifications are needed for an individual to meet the requirements of the job and how the organization will assess the individual
Job Analysis Befo Before re dete determi rmini ning ng who who to attr attrac actt and and sele select ct,, it is esse essent ntia iall that that the the organization has a clear idea about what the job requires and the attributes of the person who will best meet these requirements. Traditionally, job or role descri descripti ptions ons and person person specif specifica icatio tions ns have have been been devise devised d to enable enable the organization to do this. Job or role descriptions detail information about the job purpose, its position during the recruitment and selection process to determine whether they meet these requirements.
Structure of the Hiring Team
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To know the structure of this recruitment team can also be very important im portant for an organization. Better structure, leads to best results.
Outsourcing The recruitment process can be contracted out partly or wholly to an external organization. organization. This outsourcing may be for a specific vacancy, such as the use of a recruitment agency to recruit for the company to make the advisor base. Different parts of the recruitment process may be outsourced; for example using corporate agents; telesales, read and place job advertisements, or for short listing the profiles or for reference check. This may mean that the agency can provide a quicker, better and even cheaper service than the organization can provide itself. Improved service levels levels may also result result from the service service level level agreement agreement agreed between between the organization and the corporate agents.
Human Resource Management Information Systems (HRMIS) in Recruitment Depending on the qualification of the advisors provided by them, HRMIS can help at every step of the recruitment and selection process such as: •
Recording job requirements, through on-line job descriptions and person specifications;
•
Recording previous job advertisements, which may then be modified for the current vacancy;
•
Produc Producing ing inform informati ation on for the job packag package, e, such such as standa standard rd letter letterss regarding the application processes etc;
•
Link Linkin ing g to advi adviso sorr base based d info inform rmat atio ion, n, if the the Inte Intern rnet et is used used for for recruitment and the receipt of applications; 47
•
Producing letters and information for candidates regarding the selection process, such as invitations to attend interviews etc;
•
Record selection process results;
•
Producing contracts of employment for the successful candidate;
•
Recording the successful candidate’s personal and job information for future use during employment;
•
Recording information about applicants and the process for monitoring purposes.
The use of a HRM during the recruitment and selection process can speed up the proces processs and free free resources resources..
For example example,, dependin depending g on the type type of
package used, it may be possible to enter a candidate’s details once and this info informa rmati tion on can can then then be used used to gene genera rate te all all othe otherr docu docume ment ntat atio ion n and and info informa rmati tion on..
If the use use of a HRM HRM is linke linked d to onlin onlinee recr recrui uitme tment nt and
applications, the process may be streamlined still further.
The implementation of a HRM can be costly, both in terms of purchasing the software, but also in training staff to operate the new system.
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SELECTION METHODS
This section looks at the process of selecting candidates. A variety of methods are available and consideration needs to be given as to which are suitable for a particular post. The methods described here are: On-line screening and short listing • •
Technical Tests
•
Interviews
•
Psychometric testing
•
Ability and aptitude tests
•
Personality profiling
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ON-LINE SCREENING AND SHORTLISTING Initia Initiall screen screening ing of applic applicati ations ons is usuall usually y based based on an assessme assessment nt of a candidate’s candidate’s experience and qualifications against the job’s requirements. Online systems are now available which can filter applications automatically. automatically. An on-line selection facility screens applications against set criteria through key word searches. It may also provide a scoring mechanism. The The use use of on-l on-lin inee scre screen enin ing g may may be a usefu usefull way way of filt filter erin ing g quic quickl kly y through a huge volume of applications or sorting applications, if there are a number of jobs that have been advertised at the same time.. Some Some orga organi niza zati tions ons that that use use this this appr approa oach ch have have had had to deve develo lop p long long appl applic icat atio ion n form formss in orde orderr to ensu ensure re that that the the cand candid idat atee incl includ udes es all all appropriate information in sufficient detail. Other organizations organizations only use this approach as a first step in attempting to select candidates and then go through the applications again manually to double check that all appropriate applications have been selected.
TECHNICAL TESTS One of the important and most commonly used methods in the Insurance industry is the use of logical test to judge the accuracy and presence of mind of the candidate.
INTERVIEWS
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Inte Interv rvie iews ws are are almo almost st alwa always ys used used at some some poin pointt in the the proc process ess.. The The interview process is formed through identification of the key requirements of the job and a list of questions is drawn up. A panel of interviewers works through through each set of questions questions with each candidate candidate and scores them on their answ answer ers. s. At the the end end of the the inte interv rvie iew w proc proces esss the the over overal alll scor scores es are are considered and the best candidate chosen. If additional selection methods are chosen this is fed into the overall process at the end and again the best-fit candidate is offered the appointment. Even where the interview is structured, this does not mean that follow up questions cannot be asked to probe more deeply into a candidate’s skills and experience. An interview that does not do this, but instead sticks to a rigid list of questions, will not allow the interviewer to obtain the information required to make a proper decision. Also, sometimes these interviews are based on the technical test that the person has given. Officers and members who are involved in the interview process should be trained in interviewing skills and the sorts of questions they should or should not ask.
PSYCHOMETRIC TESTING A range of attributes are best tested through psychometric testing. This term is often confusing but in essence, means that a ‘mental measure’ is used. Therefore, Therefore, psychometri psychometricc testing testing covers covers ability ability tests, aptitude aptitude testing testing and personality profiling. Prope Properr psyc psycho home metr tric ic test testin ing g can can only only be carr carrie ied d out out by appr approp opri riat atel ely y qualified staff. It is essential that applicants are offered feedback on their
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performance and that applicants understand how the test information is used during decision-making processes. Personality tests are usually considered in conjun conjuncti ction on with with other other informa informatio tion, n, as the result resultss can be unrel unreliab iable. le. Ability tests can also be used in this way, way, but many organizations organizations use cut-off marks marks so that that all all cand candid idat ates es who who achi achiev evee less less than than a cert certai ain n mark mark are are rejected while the rest progress to the next stage.
ABILITY AND APTITUDE TESTS The term ‘ability tests’ is used broadly and in this context will encompass aptitude tests too. Ability tests may cover cover a range of areas including: •
General intelligence;
•
Verbal ability;
•
Numerical ability;
•
Spatial ability;
•
Clerical ability;
•
Diagrammatical ability;
•
Mechanical ability;
•
Sensory and motor abilities.
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PERSONAL ITY PROFILE An indivi individua dual's l's person personali ality ty may affect affect their their suitab suitabili ility ty for some some posts. posts. However, However, personality profiling does not have a ‘right’ ‘r ight’ or ‘wrong’ answer and individuals may be sifted through identifying particular behaviors that are bet bette terr suit suited ed to the the job job than than othe others. rs. It is ther therefo efore re impor importa tant nt for for thos thosee undertaking the selection process to be clear on the characteristics required to perform well in the job.
DECIDING WHICH SELECTION METHODS TO USE A significant amount of research has been done on how reliable various methods are. A summary summary of research on how well methods predict future job perfor performan mance ce shows shows that, that, where where perfec perfectt predic predictio tion n is 1.0, 1.0, the the follow following ing selection methods score as follows: ● Assessment centre promotion (0.68) •
Work samples (0.54)
•
Ability tests (0.54)
•
Structured interviews (0.44)
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•
Integrity tests (0.41)
•
Assessment centre performance (0.41)
•
Personality tests (0.38)
Which methods are suitable for a particular job? When When dete determi rmini ning ng whic which h sele select ctio ion n meth method od is most most appr approp opri riat ate, e, it is necessary to consider the requirements of the job, through analysis of the job/role description and person specification, and what skills, experience and aptitudes are being sought. Some authorities make reference on the person specification as to how they will assess that requirement during the selection process, so that potential candidates are aware of the methods the authority will use. Of course, more than one selection method may be appropriate for a particular job.
COMPENSATION LEVELS It is one of the most important factors that decide the efficiency of the hiring process of any organization. It is very important to know what different organizations are paying at to their employees at different levels. To be competitive and attract the best talent, it is very important to know what others are paying.
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TRACKING THE PERFORMANCE OF HIRING Quality is a journey and not the destination. Therefore it is always better to keep trying to achieve the best results. The word best is very relative in nature. It can’t be absolute. Therefore it is very important to keep a track of the performance of the hiring as a function and also keep a check on the effic efficien iency cy of variou variouss source sourcess of recrui recruitme tment nt and the recrui recruiter ters. s. For this this various metrics are used by different organizations in different manner. The data is captured in different forms and means by the organizations and
pre prese sen nted ted in a cust custom omiz ized ed mann anner acco accord rdiing to the the nee needs of the organization. It is dependent on what an organization is trying to check and evaluate. Thus it is good to know what all things other organizations are keeping a track of. This can really help in making an organization effective.
Structure of the Hiring Team In ICICI Prudential LIC Ltd.
There is a team of about 45 people in the recruitment function. These people are are divi divide ded d on the the basi basiss of trac tracks ks.. The The diff differe erent nt trac tracks ks are: are: Train rainee ee,, Associ Associate ate,, Sr. Sr. Associ Associate ate,, Manage Managerr, GSS, GSS, Specia Specialis listt & Resear Research ch Track. rack.
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These tracks are on the basis of levels existing in ICICI Prudential So every track hires for that particular level only. However GSS track hires for all the internal teams of ICICI Prudential for e.g. HR, Staffing, Learning and Development, IT etc. While While the specia specialis listt track track takes takes care care of specifi specificc requir requiremen ements. ts. In ICICI ICICI Prudential the hiring is general and not BU specific. After the person his hired, his staffing is taken care of by the staffing team. The research track provides all the back end support to the recruiters. These can be headhunting, mapping the industry etc.
Locational Strategy Hiring is centralized from Mumbai. However, there is a small hiring team in Delhi as well.
Application There There is no provis provision ion of applyi applying ng throu through gh hardco hardcopy py.. People People can apply apply through online resume format or in form of referrals or can send their profile after talking to any recruiter directly .
Educational Qualification of laterals hired There are no specific preferences preferences to hire engineers engineers etc. as lateral hire. Even simple simple gradua graduates tes are hired, hired, but never such such proble problem m has occurr occurred. ed. Even Even though a person is a just a simple graduate but he is good enough to be hired then normally he might have done some course or the other to complete that 56
16 yrs of education. So normally such problems are not faced. But even then if something like this does occur then companies use their ‘Cab’ system wherein they’re given authority to send certain no. of people to a particular country for work purpose.
Use of Aptitude/Psychometric Tests ICIC ICICII Prud Pruden enti tiaal also also uses ses to tak take diffe iffere rent nt kind kindss of Aptit ptitud udee or Psychometric Test.
Recruitment channel usage break-up analysis Job boards – 12% Employee Referrals – 40% Consu Consult ltan ants ts –
10%O 10%Oth ther erss
(Wal (W alkk-in ins, s, dire direct ct,,
netw networ orki king ng,,
cont contra ract ctor or
conversion) – 8% Research Track – 30%
With pri With privat vatiz izat atio ion n of th the e in insu sura ranc nce e se sect ctor or,, ca care reer er pr pros ospec pects ts ar are e mani ma nifo fold ld.. You ha have ve an op oppo port rtun unit ity y to wor ork k in wi wide de ar area eas s li like ke underwriting, sales, marketing and distribution, product management, fina fi nanc nce, e, HR op opera erati tion ons, s, cu cust stome omerr se serv rvic ice e and in inve vest stmen ment. t. We are looking at professionals from diverse background and from across the indust industry ry spect spectrum rum including FMCG compani companies, es, banking & finance, insurance etc.
Underwriting Underwriters assess the risk in the business. Candidates with the right blend of educational qualification and background can explore this segment.
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Sales,
Marketing
&
Distribution
Ther Theree is an immen immense se oppo opport rtun unit ity y in the the area area of sale sales, s, mark market etin ing g and and dist distri ribu buti tion on.. Sal Sales and and mark markeetin ting req require uiress spec specia iall skil skilll sets sets and and spec specia iali lisa sati tion on.. Degr Degree ee hold holder erss from from repu repute ted d inst instit itut utes es with with sale saless and and marketing experience can explore opportunities in this area.
Operations Operat Operation ionss is an integ integral ral part part of the insura insurance nce sector sector.. Candid Candidate atess with with requisite qualification and experience can explore opportunity in this area.
Investment Professionals with MBA / CA degree and with requisite experience in banks, MFs can look forward for a promising career.
Finance Fina Financ ncee is a crit critic ical al part part of any any orga organi nisa sati tion on.. Cand Candid idat ates es with with MBA MBA /CA/ICWA/CS degree and with requisite experience can look forward for a promising career in this area.
HR Operation Huma Human n Reso Resour urce ce is an esse essent ntia iall part part of an orga organi nisa sati tion on as it help helpss in formulating, developing and executing organizational strategy. strategy. Professionals with relevant degree/diploma in HR and requisite experience can explore various opportunities in this seg Customer Service
Insura Insurance nce being being is a servic service-s e-spec pecifi ificc indust industry ry,, the demand demand for custom customer er service professionals is on the rise. Degree holders with the right mix of soft-skills, pleasing personality and a good understanding of the customer psyche can apply.
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FINDINGS AND ANALYSIS 59
Q1. Minimum educational qualification for an advisor? Options Response 1. 10 th th 2. 12 3. Graduation
28% 20% 52% Response
1. 10th 2. 12th 3. Graduation
The above graph shows that majority of the manager prefer to recruit advisor who who have have a grad gradua uati tion on qual qualif ific icat atio ion. n. And And othe otherr pref prefer er who who havi having ng a th th qualification 10 & 12 .Because graduate advisor have ability to grasp knowledge than others.
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Q2. Basic criteria for success of an advisor RANK WISE? Options Response 1)Age above 25 2)Married 3)Graduate 4)living in the same city for more than 5 years
14% 36% 45% 05%
Response
1)Age above 25 ____________ 2)Married
3)Graduate
4)living in the same city for more than 5 yrs
As the graph shows that manager prefer to find out a graduate advisor than to married, age above 25,&living in the same city for more than 5 yrs. This is the success success rating of adviror adviror who having having three conditio condition n from the above list.
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Q3. Which age group advisor working best? Options 1)19-30 yrs 2)31-40yrs
Response 45% 55%
Response
1)19-30 yrs _____________ 2)31-40yrs
In this graph 55% thinks thinks that the advisor advisor of age between between 31- 40 & other other 45 % thinks thinks that that these these age group group adviso advisorr working working best. best. Because Because the advsor advsor between 31-40 age group have more responsibility towards their family & People trust more these people.
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Q4. Different ways of recruitment of advisor in icici pru. Rankwise? Options
Response
1)Through internal contest 2)Walk in interview intervie w 3)Marketing technique 4)Through summer trainees
23% 30% 37% 10% Respone
1)Through 1)Through int ernal contest _______________ 2)Walk in interview
3)Marketing technique 4)Through 4)Through summer s ummer trainees
This graph shows that there is no clear response In this answer, there is a mix response 37% manager thinks that marketing technique is best method of of recruitment & 30% 30% prefer walk in interview & through internal contest &summer trainees.
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Q5.Give rank according to you for segmentation of advisor? Options Response 1)Serviceman(pvt.) 2)Unemployed
35% 65%
Response
1)serviceman(pvt.) 2)Unemployed
This graph shows that majority of the people who are unemployed prefer to be an advisor than serviceman people. So manager to more concentrate on the unemployed people who are realy needy. needy. 64
Q6. Give rank for different ways ways to promote pro mote business for advisor? Options Response 1)Additional commission & salary 2}Club membership 3)Offering free insurance
50% 40% 10%
Response
1)Additional commission & salary ______________ 2}Club membership
3)Offering free insurance
In response to this question manager of ICICI PRU. Gave more concentration on additional commission & salary to promote their business & 40 prefer club membership & other 10% prefer free insurance to promote business in ICICI PRU.
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Q7.Does high fee of licensing has negative effect effect on advisor recruitment? Options Response 1. Yes 2. No
45% 55%
Response
1. Yes _______________ 2.
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No
This graph shows that 55% manager thinks that there is no effect of fees for recruitment but 45% manager thinks that fees have a negative effect on recruitment of advisor. advisor. So there should be reduction in the fees . Give some relaxsation to the people who are not affordable
Q8.Give rank to inspirational factor to promote business for advisor? Options Response 1)Commission & rewards 2)Joint field visits 3)Motivational session 4)Participation in contest
40% 10% 30% 20% Response
1)Commision & rewards _______________ _ 2)Joint field visits
3)Motivational session
4)Participation in contest
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These are the some motivational factor adopted by the manager to promote business . 40 % prefer prefer commission & rewards , 30 % prefer motivational session ,10 % prefer joint field visit & other 20%suggest participation participation in contest for motivating the advisor advisor.. So there should be more concentration on joint field visit.
Q9.Give rank to different distribution channel of icici pru.? Options Response 1)Bank assurance 2)Direct marketing 3)Tide agency 4)corporate agents
20% 35% 15% 30%
Response
1)Bank assurance _______________ _ 2)Direct 2)Direct marketing m arketing
3)Tide agency
4)corporate agents
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These are the some distribution channel channel of ICICI ICICI PRU. Which were described above.
Q10.Training Q10.Training required for effective advisor? Options Response 1. 150 hrs 2. 100hrs
15% 85%
Response
1. 150 hrs _______________ _ 2. 100hrs
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This graph indicates that that majority of the respondent says says that there should be 100 hrs training for effective effective advisor & some 15% prefer 150 hrs training for effective effective advisor.
Q11. Criteria for giving rating r ating to effective advisor? Options Response 1)By communication skill 2)By working skill
25% 75% Response
1)By communication skill 2)By working skill
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In this response also 75% of the respondent gave stress on working skill of the advisor advisor & 25% gave stress stress on communica communication tion skill. skill. There There should should be both skill required for effective advisor. advisor.
Q12. Are Are you getting timely & regularly instruction & support from your boss? Options Response 1)Strongly agree 2)Agree
65% 35%
71
Response
1)Strongly agree agree _______________ __ 2)Agree
In this response majority of the respondent said that they they got timely & regularly instruction from their boss.
Q13.Do you update your advisor about new product & strategies regularly? Options Response 1)Yes 2)No
88% 12%
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Response
1)Yes _______________ ___ 2)No
this graph indicate that majority of the respondent said that they are contineously updating their advisor about new product & strategy of the company.
Q14) Is there any role of references (contacts) with more people? Options Response 1)Yes 2)No
82% 18% 73
Response
1)Yes _______________ ____ 2)No
there are are majority majority of the the responde respondent nt were agreed agreed that that there there is a important important role role of cont contac acts ts in insu insura ranc ncee indu indust stry ry . some some are are not not agre agreed ed upon upon this this statement.
FINDINGS 74
•
The The advi adviso sors rs who who are are marri married ed perfo performi rming ng well well and and sell sellin ing g more more policy than the advisor who are unmarried.
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The aged advisors (31 – 40years) is able to sell more policy than the younger (19 – 30) years) advisors.
•
Commission, incentive and reward structure of ICICI Prudential Life Insurance Co. Ltd. And join field visit.
•
•
•
There is a important role of contact with more people in insurance sector These are the two important qualities for effective advisor that are working skill & communication skill. Those advisors who have 3 Q SCORE out of 5 perform perfor m better. better.
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CONCLUSION
This research study examines examines the recruitment recruitment process and systems of ICICI PRUDENTIAL LIC Company Ltd in detail. The objective of this research
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was to comprehensively study the recruitment systems and practices ICICI PRUDENTIAL LIC Company Ltd. 1. This study sheds light on how ICICI PRUDENTIAL LIC Company Ltd has different recruitment strategies and different ways of achieving the goal. For e.g. some organizations have BU specific recruitment team and they hire on requisition basis, while on the other hand some organizations have general hiring and one single hiring team hiring for all the BUs. Some organizations have centralized hiring while others have location wise hiring. 2. Different organizations have different hierarchies. Although most of the organizations now have broad banding in place but some organization’s structure are more flat than others that helps them in attracting right talent. The recruitment and selection process of different organizations also tends to be different. This decides the culture of the organization. Every organization has has some some requ equirem iremeents nts that hat a cand andidat idatee need eeds to fulf fulfiill. ll. So ever every y organization judges a candidate on its own requirement. When there is a match, the person gets hired. 3. Also the various sources of recruitment are present in different percentage performance in different organizations. Some have high percentage hires from referrals while others have to depend upon consultants for that. It is the case with the compensation packages as well, paid to these people.
ICICI PRUDENTIAL PRUDENTIAL LIC Company Company Ltd has different different approaches approaches to find out the amount of package a candidate needs to be offered. Some have the
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inbuilt nature of taking care of equity aspect of the organization while others are very flexible and pay what a person is worth in the market.
Although Although the above-ment above-mentioned ioned policies policies and condition conditionss are very specific from organization to organization, there can be certain policies and practices that are worth implementing in an organization as well after tailoring it according to the needs of the organization. But But ther theree are are cert certai ain n prac practi tice cess & syst system emss that that can can be appl applie ied d in any any organization depending upon what is suitable for that organization in the minds of the decision makers. This is where this research is different as with the help of this project the ways in which various firms handle recruitment have been identified. This This repo report rt can can be of imme immens nsee use use to stre streaml amlin inee any any orga organi niza zati tion on’’s recruitment process. Also it is a result of comprehensive industry survey and gives a clear and true picture of what’s happening in the industry. industry. Every organization has its own way of working and recruiting. It is very hard hard to copy copy each each othe otherr when when the the orga organi niza zati tion onal al set set up is comp comple lete tely ly diff differ eren entt in diff differ eren entt orga organi niza zati tion ons. s. But But it alwa always ys help helpss to know know what what competitors are doing and to try and improve an organization so that it’s always just a step ahead of the competition. This report can surely help in that.
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SUGGESTION AND RECOMMENDATION
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To increase the job satisfaction level of the advisors the company should concentrate mainly on the commission, incentive and reward structure rather than the motivational session and joint field visit. •
•
•
•
•
Ideal advisors should be married male of the age group 31 to 40 ICICI Prudential should try to allure experienced insurance agents to sell their product. Educational qualification qualification is not factor of being an effective advisor Advertisement of products should stress on the need of security. security. .Ins .Insur uran ance ce shou should ld be popu popula lari rize zed d as mean meanss of secu securi ring ng furt furthe her r rather than saving tax
•
New New entr entran ants ts shou should ld come come out out with with inno innova vati tive ve ride riders rs espe especi cial ally ly covering medical expenses that will compete with the medi-claim.
•
Insurance agents should be well trained; they should know each and every thing about the policy and the recent changes in the policy.
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BIBILIOGRAPHY
BOOKS
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1. Kothar Kotharii C.R. C.R. , Resear Research ch Methodo Methodolog logy y, New New Delhi Delhi;; New Age Age International International Publication, Publication, second edition. 2. Human Human Resource Resource Management Management by Ashwa Ashwathap thapa a (third edition) edition),, published by TATA Mc GRAW GRAW HILL Publication Company Ltd. Page no. 81-136,171,179,267,284. 3. Human Resource Management By T. N. Chhabra 4. Human Resource Management By Arun monnapa.
WEBSITES 1. www.iciciprulife.com
2. www.ic www.icici iciban bank.c k.com om 3. www.icicipruuniverse.com 4. www.licindia.com
.
Annual Reports of ICICI Prudential Life Insurance.
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