146715446 Hrd Management in It Industry

8/13/2019 146715446 Hrd Management in It Industry

1/98

HRD MANAGEMENT IN IT INDUSTRY

1.0 INTRODUCTION

1.0.1 Success of every business enterprise depends on its human resource. Money,

material and machines are inert factors; but man with his ability to feel, think,

conscience and plan is the most valuable resource. At the same time human elements

are most difficult to be inspired, controlled and motivated. The upcoming competition

in India, will demand high motivational level of its employees.

1.0.2 Growth of an enterprise is vital for the economic development of the country.

This is possible only by maintaining the enthusiasm and motivation of the employees,

which is vital for carrying out the operations in most efficient manner. The mostsuccessful companies, all over the world have designed their business policies to

achieve higher productivity by using potentiality and strength of people.

1.0.3 The basic aim of human policies is the genuine concern for the people. Proper

design of human policies is based on the higher responsibilities, personal and positive

approach in the total perspective of organisational interest. The world's best

companies have established their strength with their people. The employees identify

themselves with the company they are working for. This also help in building up their

spirit, morale and espirit-de-cops which becomes strength of the company. The

culture of excellence thus nurtured contribute to growth with stability and continuousimprovement in productivity.

1.0.4 Finding the right man for the job and developing him into a valuable resource is

an indispensable requirement of every organisation. Human resources are capable of

enlargement i.e. capable of providing an output that is greater than the sum of the

inputs. Proper recruitment helps the line managers to work most effectively in

accomplishing the primary objective of the enterprise. In order to harness the human

energies in the service or organisational goals, every manager is expected to pay

proper attention to recruitment, selection, training, development activities in an

organisation. Proper promotional avenues must also be created so as to motivateemployees to peak performance. Thus, personnel functions such as manpower

planning recruitment, selection and training, when carried out properly, would enable

the organisation to hire and retain the services of the best brains in the market.

1.0.5 The human resource management is very crucial in respect of information

technology services than other manufacturing or marketing enterprises. The IT


2/98

services are technical in nature and at every stage the human touch is involved. Hence

it is well motivated and devoted manpower which is very much essential for the

success of IT industry.

1.1 ROLE OF HR MANAGERS

1.1.1. And Some industry commentators call the Human Resources function the last

bastion of bureaucracy. Traditionally, the role of the Human Resource professional in

many organizations has been to serve as the systematizing, policing arm of executive

management. In this role, the HR professional served executive agendas well, but was

frequently viewed as a road block by much of the rest of the organization. While some

need for this role occasionally remains you would no want every manager putting his

own spin on a sexual harassment policy, as an examplemuch of the HR role is

transforming itself. The role of the HR manager must parallel the needs of his

changing organization. Successful organizations are becoming more adaptable,

resilient, quick to change direction, and customer-centered. Within this environment,the HR professional, who is considered necessary by line managers, is a strategic

partner, an employee sponsor or advocate, and a change mentor.

1.1.2 Strategic Partner:-In todays organizations, to guarantee their viability and

ability to contribute, HR managers need to think of themselves as strategic partners. In

this role, the HR person contributes to the development of and the accomplishment of

the organization-wide business plan and objectives. The HR business objectives are

established to support the attainment of the overall plan and objectives. The tactical

HR representative is deeply knowledgeable about the design of work systems in

which people succeed and contribute. This strategic partnership impacts HR services

such as the design of work positions, hiring; reward, recognition, and strategic pay;

performance development and appraisal systems; career and succession planning; and

employee development.

1.1.3 Employee Advocate:-As an employee sponsor or advocate, the HR manager

plays an integral role in organizational success via his knowledge about and advocacy

of people. This advocacy includes expertise in how to create a work environment in

which people will choose to be motivated, contributing, and happy. Fostering

effective methods of goal setting, communication, and empowerment through

responsibility build employee ownership of the enterprise. The HR professional helps

establish the organizational culture and climate in which people have the competency,

concern, and commitment to serve customers well. In this role, the HR manager

provides employee development opportunities, employee assistance programs, gain

sharing and profit-sharing strategies, organization development interventions, due

process approaches to problem solving, and regularly scheduled communication

opportunities.


3/98

1.1.5 Change Champion:-The constant evaluation of the effectiveness of the

organization results in the need for the HR professional to frequently champion

change. Both knowledge about and the ability to execute successful change strategies

make the HR professional exceptionally valued. Knowing how to link change to the

strategic needs of the organization will minimize employee dissatisfaction and

resistance to change. The HR professional contributes to the organization byconstantly assessing the effectiveness of the HR function. He also sponsors change in

other departments and in work practices. To promote the overall success of his

organization, he champions the identification of the organizational mission, vision,

values, goals, and action plans. Finally, he helps determine the measures that will tell

his organization how well it is succeeding in all of this.

1.2 LEADERSHIP AND EMPLOYEE INVOLVEMENT.

1.2.1 The main role of leadership was seen as creating a participatory process

for employee involvement, to build collective wisdom. Control has given way tocollaboration and the old paradigm of promoting competition and motivating through

incentives shifted to creating co-operation and oneness amongst people. This is a

marked shift to build effective teams. Research shows that six out of every 10

employees like to work in teams. 87 per cent of all Fortune 500 companies use

parallel teams and about 100 per cent of all companies use project teams.

1.2.2 Story telling and appreciative enquiry are emerging as a new dimension in

positive motivation. Finding out what's wrong seems to be the trend. In Walt Disney,

telling success stories is one of the important methods used to remind people of

greatness and goodness of the organisation. Leaders in Disney concentrate on quality,

values and involvement. Speaking in the plenary sessions, Tom Peters said, " We have

transitioned from an asset-based economy to a talent-based economy. The new

definition of lay-off is untalented go talented stay. Leaders must realise that talent is

equal to brand". His new theory is EVP which means "Employee Value Proposition".

1.2.3 Rosabeth Moss Kanter said, " Human beings are good raw material, they

become assets when you train them to increase their knowledge and skills". She added

that only a few organisations really train people to make them a success. Seconding

this, Mr Peters pointed out how most organisations are not serious about developing

people. They spend on an average 26.3 hours per person per year on training. A

surgeon, a pilot or an athlete on the other hand spends 10-15 times more on training.

1.2.4 He also stated that the HRD department should be renamed TDFD (Talent

Development Fanatic Department) and wealth for this new regime will flow from

innovation, not organisation. Quoting Gary Hamel he said, only those employees will

succeed who are "certified radical". Only those companies will succeed who create a


4/98

cause, not a business. Leaders according to him are living individuals, whom people

can smell, feel and touch. Their passion for work must be infectious.

1.2.5 Another aspect of leadership if the decision to introduce fun in the work

place. Research shows that this reduces absenteeism and builds stronger, deeper and

longer lasting relationships. It appears out of every 100 Fortune companies in the lastdecade, 69 are dead and only 31 are alive. In a Forbes Magazine study of around 100

companies from '17 to '87, only 39 companies were found to survive. Management of

Change:-Research proves that many change models don't consider the human

experience during change. The overriding concern seems to be to downsize. It was

found that most change processes go through four fundamental stages.

People try to resist or deny change

They adapt, participate in the change

They attempt to add value

The culmination or formation of a new status-quo

1.2.6 A number of presentations revealed that leaders who initiate change must do so

with one foot in the future and the other planted in past values. Forgetting tradition

must can devalue existing strengths. The success of a change process depends on the

skill of the facilitator to create a participatory process to enlist the support of people

and address the issue of grief.

1.2.7 E-Learning :- Organisations like Ford Motor, Hewlett Packard, Intel and IBM

are using e-learning to increase the knowledge of their people. Companies like

Fordstar even manage time differences between countries while conducting virtualclass rooms, chats, demos, presentations to communicate new concepts, product

details, core values, issues of governance and corporate communities.

1.2.8 CEO's are talking to their people about new ideas and enlisting their support

through forums and message boards. This is changing the way people behave and

work. The advantages of e-learning are many: It is self-paced, flexible, less expensive,

modular and has a huge reach.

1.2.9 Universities like Cornell, MIT, Stanford, etc, have started emphasizing e-

learning to attract a worldwide audience. Web-centric universities are becoming theorder of the day. William Taylor, editor and managing partner of the Fast Pace

magazine, said, "There is no going back from back from dotcoms". He was of the

opinion that there is a merger taking place between computers and human beings.

1.3 INNOVATIVE PRACTICES IN HR


5/98

1.3.1 The Innovative Practices in Human Resources study uncovered 12 practices that

are reducing HR costs and improving service quality to employees. Key findings from

this research included the need for HR managers to streamline processes, lower

overhead costs, and enable their departments to advance from transactional

organizations to strategic partners in the business.

1.3.2 Practices and technologies include:

Internet and intranet employee services

Strategic human resources

Centralized HR departments and call centers

360-degree performance appraisals

HRIS systems

Employee self-service

Voice response systems (VRUs)

Resume scanning and Internet recruitment Kiosks

Automated time and attendance systems

Team policies and development

Outsourcing

Business process reengineering (BPR)

1.4 LINKING PAY TO PERFORMANCE

1.4.1 Most Human Resource professionals are familiar with the concept of strategy.

There is much more concentration and focus today on the strategic outcomes of

human resource activity than ever before. The area of compensation is no exception.

1.4.2 Pay for performance systems are becoming more and more popular as senior

managers reach beyond the use of compensation systems to deliver pay. There is far

more interest in more closely linking the reward mechanisms to the achievement of

corporate objectives. Motivation for superior performance is the goal.

1,4.3 In experience, most organizations will profess to a "pay-for-performance"philosophy as a keystone of their compensation system. Such a system requires solid

grounding in a clear and documented link between performance and salary increases.

Unfortunately, the link between individual performance and pay is frequently

nonexistent - "merit" pay is a hollow concept in this regard.


6/98

1.4.4 A merit system demands that managers be willing to make distinctions in merit

increases based on performance. However, several factors get in the way of this

happening. First, the annual salary change is usually a small percentage. Giving the

better performer 2% more than the cost of living has little motivation or recognition

attached to it. Similarly giving the poor performers 2% less than the cost of living

increase is not that much of a penalty. So many managers don't make that distinction -it is too much hassle. So everybody gets the same increase.

1.4.5 Second, most performance appraisal systems are after-the-fact appraisals. In

other words, at appraisal time, which is usually toward the end of the year, managers

are required to evaluate the performance of their staff. It means sitting down and

trying to reconstruct what each staff member did, capturing it in a non-threatening

way, communicating the evaluation without a fuss and finally, making a merit

increase recommendation. Sound like a familiar pattern? It is a process that repeats

itself year after year.

1.4.6 The end result is usually a lot of avoidance behavior. Managers avoid the

appraisal process like the plague. Although employees profess to want to "know

where they stand" they often take issue with the appraisal. Besides, they don't listen to

the evaluation, they wait until the penny literally "drops". "What is my rating and how

much do I get?" is a constant theme in merit systems where salary decisions are tied

so closely with the appraisal process.

1.4.7 You might well ask is there any way out of this mess? The answer is fortunately

yes. Organizations that are the best and want to separate themselves from the rest, are

turning away from the merit system and toward an annual incentive system,

particularly for middle and upper management positions but increasingly for teams

and individuals lower down in the organization as well.

1.4.8 They are adopting a system of annual incentive bonuses linked directly to the

achievement of corporate and individual objectives in three specific areas. The areas

are corporate revenues and gains, cost containment and behavioral changes. The first

two areas are quantitative and the third area, which is gaining in importance, is

qualitative in nature, and has a great deal to do with building managerial and

individual competence.

1.4.9 Why Is This Transition Occurring? :-Well, there are many challenges facing

businesses today and these challenges are driving them to find better ways of linking

pay and performance to the achievement of corporate results..

1.5 CHANGING JOB DESIGN IN IT COMMUNITY


7/98

1.5.1 The California State University (CSU) system is being challenged to meet

increasing demands for educational and administrative services through the innovative

use of technology and human resource systems. Even though funding levels for higher

education have been cut in recent years, public/taxpayer expectations and the demands

for quality education, access, service, and accountability have grown. Technology

initiatives within the CSU have resulted in significant advances and improvedtechnical capabilities and efficiency. Human resource and organizational systems are

also needed to capitalize on and thrive in this rapidly changing work environment.

1.5.2 In 1991, the CSU began a study to look at alternative work and job design

approaches to meet these challenges. The study focused on the information

technology community and how work processes and activities could be better

organized to remove artificial barriers and improve organizational effectiveness, a

process often associated with the term "reengineering." Secondly, the study focused

on developing a job design approach that could adapt to changing skill requirements

and that would promote the continuous acquisition of skills for knowledge-based

employees in information technology. The goal of improved organizational

effectiveness and an orientation towards reengineering and skills guided the

development of the proposed job design approach.

1.5.3 This article begins by identifying several trends that led to the study, then

describes the overall project within the context of an organizational effectiveness

equation. A new job design approach that was proposed as a result of the study is

presented, including a new classification structure and competency dimensions and

measures for defining and evaluating positions. Finally, other supporting systems are

described for an integrated human resources approach. The development phase of the

project has been completed, and the CSU anticipates entering into negotiations with

its employee representatives in the near future.

1.5.4 Three trends have had a direct impact on the development of a strategic job

design approach for the information technology community at the CSU: (a)

diversification and convergence of technology, increased demand for educational

access and (b) changes in instructional delivery methods; and changing work place

demands and priorities.

1.5.5 The technology demands within higher education lead to a complex and

dynamic computing environment. Academic and administrative computing strategies

tend to be at cross-purposes in terms of defining systems requirements. This has

resulted in widely diverse systems and technology within and across the CSU's twenty

campuses. Increasingly, however, campus systems are becoming more integrated, as

data are shared across multiple platforms on a network "highway" that is linked to

external information sources. Networking and desktop computing have removed


8/98

traditional boundaries for information access, research, and decision-support

purposes. Data, voice, and video technologies continue to be combined in more

interactive and user-friendly formats.

1.5.6 In terms of educational trends, many institutions offer distance learning using

various transmission media and are incorporating instructional technology intocurriculum development. Students expect guaranteed access to technology and to

research databases, and this access has become an issue of social responsibility.[1]

Library and computing functions are becoming increasingly interdependent in "an

infrastructure of scholarly communication" within higher education.[2] Workplace

trends, as presented in Sustaining Excellence in the 21st Century: A Vision and

Strategies for College and University Administration, well represent the outlook for

the CSU. Two key issues are identified:

(1) Economics. There is increasing pressure to constrain administrative costs within

the "labor intensive cost structure" that exists in higher education. Reductions in staffare occurring at the same time as transaction volume and service expectations are

growing.

(2) Decentralization of responsibility. With fewer people and greater access to

information, organizations are moving responsibility for decision-making downward

to the point of service. Work organization is shifting away from job specialization and

a task/procedure orientation, to more generalized job responsibilities focused on

outcome and greater participation on cross-functional teams

(3) Another central workplace trend is the "earning and learning" environmentdescribed by the U.S. Department of Labor in its Secretary's Commission on

Achieving Necessary Skills (SCANS) report. To quote Thomas P. Foley, Secretary of

the Pennsylvania Department of Labor and Industry:"We've changed from the idea of

"one skill, one job" to the reality of a range of skills that have to apply to a number of

different kinds of professions. More to the point, workers must possess a skill that

they continually upgrade just to keep pace in the professions they choose."

(4) The influx of new technology and applications has created a demand for continual

learning and adaptation. Due to the CSU's relatively stable workforce, maintaining

skills to keep pace with changing technology was identified as a critical goal.Knowledge requirements are expanding to encompass a greater breadth of

technologies and subject expertise, as well as including process-oriented capabilities

such as communication and negotiation skills.

1.5.7 The implications of these technological , educational, and workplace trends

point directly to the need to reengineer organizational structures, work design, and


9/98

processes. Based on these trends and overall organizational goals, two key objectives

were established for a new job design approach for the CSU: flexibility and skill

development. Fundamentally, each campus needs the flexibility to achieve its goals by

distributing work assignments in a way that optimizes its available skill mix and

promotes individual skill development and initiative.

1.6 OBJECTIVES OF STUDY

1.6.1 Following were the objectives of the study:-

1. To enlist emerging HR trends in Indian IT Industry

2. To review literature and research done in this area.

3. To find out lacking areas regarding the HRD in IT sector.

4. To measure the perceptions of IT sector employees in respect of application of

HRD in their organisation.

5. To suggest the measures to fill the gaps and improve motivation level of employees

and HR management in IT industry.

1.7 RESEARCH METHODOLOGY

1.7.1 The study was exploratory in nature. All published and unpublished available on

the subject matter was consulted. Interview and discussions were held with the

various executive/ Managers/ staff employed in IT sector. The HRD functions/

activities being undertaken in different IT organisations were also studied. Primary

and secondary data available with these organisations was also used for this project

study.

1.7.2 In order to measure the employees perceptions of emerging HR trends indifferent IT organisation, the survey was undertaken. The survey was based on

structured questionnaire. The questionnaire was mainly based on objective type close-

ended question, but few open ended questions were also included.

1.7.3 Firstly, the pilot survey on ten randomly selected respondents was undertaken.

Then the questionnaire was modified accordingly, if desired.


10/98

1.7.4 The final questionnaire was administered in person to the extent possible and

through mail if needed. The 100 respondents were selected among the executives and

staff working in various IT organizations. The convenient random sampling technique

was used for the selection of the respondents.

1.7.5 Finally, the results of the survey has been presented in Tabular form, analyzedand interpreted to meet the required needs of this project study and presented in

Report form.


11/98

Recruitment and selection of Insurance Companies

PREFACE

People are a companys most important assets. They can make or break the fortunes

of a business. In todays highly competitive business environment placing the rightpeople in the right position is very critical for the success of any organization.

The recruitment and selection decision is of prime importance as it is the vehicle for

obtaining the best possible person-to-job fit that will, contribute significantly

towards the Company's effectiveness. It is also becoming increasingly important, as

the Company evolves and changes, that new recruits show a willingness to learn,

adaptability and ability to work as part of a team. The Recruitment & Selection

procedure ensures that these criteria are addressed

In this project I have studied Recruitment and Selection process of ICICI Prudential

Life Insurance and attempted to provide some ways so as to make recruitment more

effective and to reduce the cost of hiring an employee.

I am privileged to be one of the students who got an opportunity to do my training

with ICICI Prudential Life Insurance. My involvement in the project has been very

challenging and hasprovided me a platform to leverage my potential in the most

constructive way.

ICICI Prudential Life insurance is one of India's leading financial institutions offeringcomplete financial solutions that encompass every sphere of life. In a short span of

time,ICICI has set an example by having a steady and confident journey to growth

and success.

During the training period I have studied deeply the process of hiring in ICICI

Prudential Life insurance and did a SWOT analysis of ICICI Prudential Life Insurance to

find out the existing shortcomings and potential threats and thereby recommended

suggestions.

This project however is an attempt to share as best as possible my experience in

corporate world with all my colleagues and my faculty.

I would be delighted to receive readers comments which maybe valuable lessons for

my future projects.


12/98

EXECUTIVE SUMMARY

In todays rapidly changing business environment, organizations have to respond

quickly to requirements for people. The Financial market has been witnessing growth

which is manifold for last few years. Many private players have entered the economy

thereby increasing the level of competition. In the competitive scenario it has

become a challenge for each company to adopt practices that would help the

organization stand out in the market. The competitiveness of a company of an

organization is measured through the quality of products and services offered to

customers that are unique from others. Thus the best services offered to the

consumers are result of the genius brains working behind them. Human Resource in

this regard has become an important function in any organization. All practices of

marketing and finances can be easily emulated but the capability, the skills and

talent of a person cannot be emulated. Hence, it is important to have a well-

defined recruitment policy in place, which can be executed effectively to get the bestfits for the vacant positions. Selecting the wrong candidate or rejecting the right

candidate could turn out to be costly mistakes for the organization. Therefore

a recruitmentpractice in an organization must be effective and efficient in attracting

the best manpower.

CoverageThe extent and limitation

With largest number of life insurance policies in force in the world, insurance

happens to be a mega opportunity in India. Its business is growing at 15-20% annually

and presently is of the order of Rs. 450m. Together with banking sector it adds about

7% to the GDP.

Like in the case of BPOs, Insurance sector too faces the problem of attrition.

Thus,recruitment is an ongoing process carried through out the year. The project is

based on the study of recruitment process. The various recommendations suggested

have been the result of the study. The idea is to generate ways of dealing with high

attrition and making hiring process manageable and efficient.

Data Used

There were mainly two sources of data collection

Primary data:


13/98

Survey method

Personal interview with candidates

In depth conversation with the placement agency

v Secondary data:

Study of recruitment policy

Websites

Published articles

Research methodology used

v Study of recruitment and selection at ICICI Prudential Life Insurance by the

manual providedby the HR department;

v Web sites

v Journals

v Magazines

v Books

Findings

v Recruitment is done throughout the year more during the months of May-June

and Oct-Nov;

v Huge investment of time;

v Huge recruitment cost;

To pursue these, I would be going through the recruitment policies of the company.

By active participation in the recruitment process, the areas where improvement can

be bought about can be identified.


14/98

Thus the whole research would be done under the guidance of external guide. It will

also involverecruitment and selection processes, reading the material provide

internally by the organization, information from the new employees.

Introduction

1.1 Introduction Of The Insurance Industry

Overview

The story of insurance is probably as old as the story of mankind. The same instinct that prompts

modern businessmen today to secure themselves against loss and disaster existed in primitive

men also. They too sought to avert the evil consequences of fire and flood and loss of life andwere willing to make some sort of sacrifice in order to achieve security. Though the concept of

insurance is largely a development of the recent past, particularly after the industrial erapastfew centuriesyet its beginnings date back almost 6000 years.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44

companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with totalbusiness-in-force as Rs.298 crore in 1938. The Insurance Act 1938 was the first legislation

governing not only life insurance but also non-life insurance to provide strict state control over

insurance business.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil startedfunctioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its

business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with acapital contribution of Rs. 5 crore from the Government of India.


15/98

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

With largest number of life insurance policies in force in the world, Insurance happens to be a

mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and

presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per

cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and fundsavailable with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while healthinsurance and non-life insurance continues to be below international standards. And this part of

the population is also subject to weak social security and pension systems with hardly any oldage income security. This itself is an indicator that growth potential for the insurance sector isimmense.

A well-developed and evolved insurance sector is needed for economic development as itprovides long term funds for infrastructure development and at the same time strengthens the risk

taking ability. It is estimated that over the next ten years India would require investments of the

order of one trillion US dollar. The Insurance sector, to some extent, can enable investments ininfrastructure development to sustain economic growth of the country.

India has come a full circle from being an open competitive market to nationalization and back to

a liberalized market again. Tracing the developments in the Indian insurance sector reveals the360 degree turn witnessed over a period of almost two centuries.

Present Scenario

The Government of India liberalized the insurance sector in March 2000 with the passage of theInsurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for


16/98

private players and allowing foreign players to enter the market with some limits on direct

foreign ownership.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in

India and this may also include restructuring and revitalizing of the public sector companies. In

the private sector 14 life insurance and 8 general insurance companies have been registered. Ahost of private Insurance companies operating in both life and non-life segments have started

selling their insurance policies..

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the

state owned LIC till the entry of private insurers. The penetration of life insurance products was

19 percent of the total 400 million of the insurable population. The state owned LIC sold

insurance as a tax instrument, not as a product giving protection. Most customers were under-insured with no flexibility or transparency in the products. With the entry of the private insurers

the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the

market in terms of premium income. The new business premiums of the 12 private players has

tripled to Rs 1000 crore in 2002- 03 over last year. Innovative products, smart marketing andaggressive distribution. That's the triple whammy combination that has enabled fledgling privateinsurance companies to sign up Indian customers faster than anyone ever expected. Indians, who

have always seen life insurance as a tax saving device, are now suddenly turning to the private

sector and snapping up the new innovative products on offer.

The private insurers also seem to be scoring big in other ways- they are persuading people to

take out bigger policies. Buoyed by their quicker than expected success, nearly all privateinsurers are fast- forwarding the second phase of their expansion plans.

Major Insurance Players

Licenses have been issued for the following companies

ICICI Prudential Life Insurance Limited

ICICI Prudential Life Insurance Company Limited

HDFC Standard Life Insurance Company Limited

Birla Sun Life Insurance Company Limited

TATA AIG Life Insurance Company Limited


17/98

Max New York Life Insurance Company Limited

SBICardiff Life Insurance Company Limited

ING Vysya Life Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited

MetLife Life Insurance Company Limited

Aviva Life Insurance Company Limited

AMP Sanmar Life Insurance Company Limited

Sahara India Life Insurance Limited

Sri Ram Life Insurance Limited

Protection of the interests of policyholders:

IRDA has the responsibility of protecting the interest of insurance policyholders.

Towards achieving this objective, the Authority has taken the following steps:

v IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language; claims

procedure in both life and non-life; setting up of grievance redressal machinery;

speedy settlement of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in settlement of claim.

v The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to payment of

claims.


18/98

v It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy. The advertisements issued by the

insurers should not mislead the insuring public.

v All insurers are required to set up proper grievance redress machinery in their

head office and at their other offices.

The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the insurance

contract.

1.2 COMPANY PROFILE

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and Prudential plc, a leading international financial

services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it hasdiversified into retail banking and is the largest private bank in the country.

Prudential plc was established in 1848 and is presently the largest life insurance

company in UK.

ICICI Prudential is currently the No. 1 private life insurer in the country. For the

financial year ended March 31, 2005, the company garnered Rs 1584 crore of new

business premium for a total sum assured of Rs 13,780 crore and wrote nearly

615,000 policies.

The Company recognizes that the driving force for gaining sustainable competitive

advantage in this business is superior customer experience and investment behind

the brand. The Company aims to achieve this by striving to provide world class

service levels through constant innovation in products, distribution channels and

technology based delivery. The Company has already taken significant steps to

achieve this goal.


19/98

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a

joint venture between ICICI Bank-one of India's foremost financial services

companies-and Prudential plc- a leading international financial services group

headquartered in the United Kingdom. Total capital infusion stands at Rs. 23.72

billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

ICICI Prudential was the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,

ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The

Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow

our distribution, product range and customer base, we continue to tirelessly uphold

our commitment to deliver world-class financial solutions to customers all over India.

FACT SHEET

THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst

the first private sector insurance companies to begin operations in December 2000

after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and Prudential plcholding 74% and 26% stake respectively. For the first quarter ended June 30, 2007,

the company garnered Rs. 987 crore of weighted retail + group new business

premiums and wrote over 450,000 retail policies in the period. The company has

assets held to the tune of over Rs. 18,400 crore.

ICICI Prudential is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating

is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its

obligations to customers at the time of maturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1 private

life insurer in the country, with a wide range of flexible products that meet the needs

of the Indian customer at every step in life.

Distribution


20/98

ICICI Prudential has one of the largest distribution networks amongst private life

insurers in India. It has a strong presence across India with over 680 branches and

over 235,000 advisors.

The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank,

Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-

operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank,

Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli

Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank,

The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited.

The Insurance Provided The health insurance Placement Agency Canon camera reviews Locate a person Life insurance company

Products Insurance Solutions For Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its products can be

enhanced with up to 4 riders, to create a customized solution for each policy holder.

Savings Solutions

SavenProtectis a traditional endowment savings plan that offers life

protection along with adequate returns.

CashBakis an anticipated endowment policy ideal for meeting milestone

expenses like a childs marriage, expenses for a childs higher education or

purchase of an asset.

LifeTimeSuper offer customers the flexibility and control to customize the

policy to meet the changing needs at different life stages. Each offer 4 fund

options Preserver, Protector, Balancer and Maximiser.

LifeLink Superis a single premium Unit Linked Insurance Plan which combines

life insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan that offers customers life

insurance cover till the age of 75.


21/98

InvestShield Life Newis a unit linked plan that provides premium guarantee on

the invested premiums and ensures that the customer receives only the

benefits of fund appreciation without any of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premium guarantee

on the invested premiums along with flexible liquidity options.

Protection Solutions

LifeGuardis a protection plan, which offers life cover at very low cost. It is

available in 3 optionslevel term assurance, level term assurance with return

of premium and single premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically

to help customers cover their home loans in a simple and cost-effective

manner.

Child Plans SmartKideducation plans provide guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The

policy is designed to provide money at important milestones in the childs life.

SmartKid plans are also available in unit-linked form both single premium

and regular premium.

Education Insurance Plans

Education insurance under the SmartKid brand provides guaranteed

educational benefits to a child along with life insurance cover for the

parent who purchases the policy. The policy is designed to provide

money at important milestones in the child's life. SmartKid plans are

also available in unit-linked form - both single premium and regular

premium

Retirement Solutions

ForeverLifeis a retirement product targeted at individuals in their thirties.

Market-linked retirement products

LifeTimeSuper Pension is a regular premium market-linked pension plan.

Golden Years: is a limited premium paying retirement solution that offers tax

benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation

and payout stages.


22/98

Health Solution

Health Assure and Health Assure Plus: Health Assure is a regular premium

plan which provides long term cover against 6 critical illnesses by providing

policyholder with financial assistance, irrespective of the actual medical

expenses. Health Assure Plus offers the added advantage of an equivalent life

insurance cover

Cancer Care: is aregular premium plan that pays cash benefit on the

diagnosis as well as at different stages in the treatment of various cancer

conditions.

Diabetes Care and Diabetes Care Plus*:1stever critical illness insurance

cover for diabetics.

Hospital Care*:Hospital Care offers a Cashless hospitalization facility in

more then 3000 network hospitals

Crisis Cover: is a 360-degree product that will provide long-term coverage

against 35 critical illnesses, total and permanent disability, and death

Note (*) products Re-launched on 1stJuly 2006

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking toenhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund

their statutory gratuity obligation in a scientific manner. The plan can also be

customized to structure schemes that can provide benefits beyond the statutory

obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined

contribution superannuation scheme to provide a retirement kitty for each member of

the group. Employees have the option of choosing from various annuity options oropting for a partial commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Prus flexible group term solution helps provide

affordable cover to members of a group. The cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under the policy is paid to the

beneficiary nominated by the member on his/her death.


23/98

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.

1. Accident Benefit:If death occurs as the result of an accident during the term ofthe policy, the beneficiary receives an additional amount equal to the rider sum

assured under the policy. If the death occurs while traveling in an authorized

mass transport vehicle, the beneficiary will be entitled to twice the sum assured

as additional benefit.

2. Accident & Disability Benefit: This rider option pays 10% the sum assured under

the rider every year till next 10 years on Accidental Permanent Disability of 2

Organs.

3. Critical Illness Benefit:protects the insured against financial loss in the event of

9 specified critical illnesses. Benefits are payable to the insured for medical

expenses prior to death.

4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every

year, till maturity, in the event of the death of the life assured. It is available on

SmarKid, SecurePlus and CashPlus

5. Waiver of Premium:In case of total and permanent disability due to an accident, the

premiums are waived till maturity. This rider is available with SecurePlus andCashPlus.

Choice of Six Investment Options :-

ICICI prudential offers you the opportunity of selecting between investment options

to match your investment priorities.

1) Protector:-

An Investment Option with investment indebt and money marketinstruments.

2) Maximiser :-

An investment option with investment in equity and equity related

instruments.


24/98

3) Balancer :-

An investment option with investment in a mix of equity and debt oriented

instruments.

4) Preserver :-

An investment option with investment in low-risk instruments like cash and

call

money markets.

5) Flexi Growth:-

New Fund (NFO) launched in March 2007, Long term returns from an equity

portfolio lare,mid and small cap companies.

6) Flexi balanced:-

Balance of capital appreciation and stable returns from an equity (large,mid &

small cap companies) & debt portfolio.

Vision and Mission

Their vision is to make ICICI Prudential Life Insurance Company the dominant new

insurer in the life insurance industry. This they hope to achieve through their

commitment to excellence, focus on service, speed and innovation, and leveraging our

technological expertise.

The success of the organisation will be founded on its strong focus on values and

clarity of purpose. These include:

Understanding the needs of customers and offering them superior products

and service

Building long lasting relationships with their partners Providing an enabling environment to foster growth and learning for their

employees

And above all building transparency in all our dealings.


25/98

They believe that they can play a significant role in redefining and reshaping the

sector. Given the quality of their parentage and the commitment of their team, they

feel that tere will be no limits to their growth.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life

insurers in India, having commenced operations in 150 cities and towns in India,

stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to

Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with ICICI

Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some

co-operative banks, as well as over 300 corporate agents and brokers. It has also tied

up with NGOs, MFIs and corporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 1, 90,000 insurance advisors to

interface with and advise customers. Further, it leverages its state-of-the-art IT

infrastructure to provide superior quality of service to customers

RegisteredOffice :

ICICI Towers 9thfloor, Bandra-Kurla Complex

Mumbai - 400 051.

Tel: 494 3232

Regional Office :

8thfloor EROS Coorporate Tower,Nehru place,

New Delhi-110011.Tel:46554405

Delhi office :

3rd floor

Videocon Towers

E-1, Rani Jhansi RoadNew Delhi - 110055. Tel: 601 3232

ICICI Prudential Life Insurance opens office in Dubai


26/98

In a move to consolidate its position in the Gulf region, ICICI Prudential Life

Insurance (ICICI Prudential), India's No. 1 private life insurance company, today

opened its representative office in Dubai, becoming the first private life insurer

from India to open an office in the Emirate.

At ICICI Prudential we offer pragmatic, world-class solutions. Put simply,

solutions with a lot of common sense. Solutions that take care of your four basic

financial needs - Earning, Saving, Investing and Spending. So you live your life to the

fullest, sans worries.


27/98

Workman's Performance Appraisal in HP India Sales Pvt.

Ltd., New Delhi

Performance Appraisal System inHRM :

The performance appraisal system is

one of the most critical areas in the

field of human resource management.

Despite the increasing research done

by behaviour scientists, man still

remains a very complex person,

however, at the same time capable of

extremely high performance levels,given the proper environment and

motivation.

This aspect has given a new

dimension to performance appraisal

system. These are not merely, at least

should not be, a mere reporting of an

individual performance once a year

but also should serve as an instrument

of motivation. A sound appraisal

system is, therefore, an individual

assets in human resource

management.

Project Report on Training & Development of

Employees

Project Report on HR Implications in Banking

Industry

Some practical issues for improving the effectiveness of appraisal practices would be

as under :-

1. Purpose of performance appraisal.

2. Confidently in appraisals.

3. Steps for ensuring objectivity.

4. Shift from personality trait to job performance.
http://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/project-report-mba-hr-implications-in-private-banking-sector.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htmhttp://www.allprojectreports.com/MBA-Projects/HR-Project-Report/Project-Report-on-Training-and-Development.htm


28/98

5. Influence of organizational environment in employee appraisal.

CONTENTS

Company Profile

Introduction to Project

Performance Appraisal in HP India Sales Pvt. Ltd.

Objective of Study

Scope of Study

Research Methodology

Analysis and Interpretation of Data

Conclusions

Suggestions

Limitations

Observations

Annexures

o Questionnaire

o Bibliography

Project Description :

Title : Workman's Performance Appraisal in HP India Sales Pvt. Ltd., New Delhi

Category : Project Report for MBA

Pages : 72


29/98

This project is our paid category, its cost is Rs. 2499/- only without Synopsis and Rs.

2999/- only with synopsis. If you need this project, mail us at this id

:[email protected]

We will send you a hardcopy with hard binding and a softcopy in CD from courier.
mailto:[email protected]:[email protected]


30/98

PROJECT REPORT ON TOTAL QUALITY

MANAGEMENT

CONCEPTUALIZATION

This is Total Quality Management Project Report. Human resource is the most

important factor for any organization and success of any Organization is depending

upon its resource .If human resource of organization is not happy with the

organization. It will adversely affect the organization.

The higher degree of commitment toward work will improve productivity and will

decrease rejection cause due to human factor.

So to make the people happy is the responsibility of the organization. So this study is

helpful to measure the level of commitment toward work and to know the factor

affecting the commitment level .

QUALITY:-

1. Quality means fit ness for use.

2. Quality means productivity, competitive cost, and timely delivery, total customer

satisfaction.

3. Quality means conformance to specification and standard.

4. Conformance to requirements.

5. Quality is what the customer says

6. Quality means getting every one to do what they have agreed to do and to do itright the first time and every time.

TOTAL QUALITY :-


31/98

It means all the people of the organization are committed to product quality by doing

right things right, first time, every time by employing organization resource to

provide value to customer.

TOTAL QUALITY MANAGEMENT: -

It is the process designed to focus external/internal customer expectation preventing

problems building ,commitment to quality in the workforce and promoting to open

decision making.

TOTAL:

Every one associated with the company is involved in continuous improvement, in all

functional area, at all level.

QUALITY:

Customer express and implied requirement is met fully.

MANAGEMENT:

Executive are fully committed

Decision in a planned way.

To maintain existing lever of quality.

To improve existing lever of quality.

Effective utilization of resource.


32/98


33/98

The treatment of individual by the management

The lever of workers satisfaction with the salaries

The level of worker pride in the company and its activity

Worker reaction to the formal communication network in the organization.

Intrinsic job satisfaction level of the worker.

Worker attitude toward the fellow worker.

OPERATIONALISATION OF THE

CONCEPT:-

I have studied on impact of employees commitment toward. I have explained

earlier.

In the company, they already have implemented TQM so through this study, I

measured the degree of implementation in the organization and what are the factor

that are affected the commitment lever and to check how much they are satisfaction

with the TQM implement.

For this purpose, I have made the questionnaire which consisting of multiple-choice

questions. I have collected the data from them and after that I have tabulated them and

interpreted them and give the recommendation.

Focus of the problem:

The main emphasis will be on to find out quality employees commitment toward

their work as a result total quality implementation.

Review of Existing literature:

Many people have work on this topic. They sum up various finding. They found that

apply TQM has directly increased their morale; increase the satisfaction lever and

commitment toward their work. These are the finding of various researchers.


34/98

Several articles have been published in different journals , magazines and newspaper

such as HARVARD BUSINESS REVIEW,THE ECONOMIC TIMES,VIKALPA etc.

But the effect of TQM on employees commitment in the company has so far not

undertaken. This project has been done first time in the company.

LIMITATION

~Employees of the organization may hide the fact.

~The management did not agree to disclose all the confidential data.

~Number of respondents are very less, so clear conclusion cant be

drawn.

OBJECTIVE OF THE STUDY:-

The objectives of this study are:

1.To find the degree of TQM implemented in the organization.

2.To studythe level of commitment of employees toward their work.

3. To find out factor influencing the commitment.

RESEARCH METHODOLOGY

Research methodology is a way to solve the research problem in a systematic

manner. It may understand as a science of studying how the research is done

significantly. The methodology may differ from problem to problem, yet the basic

approach towards the research remains the same. The sequence or steps followed havebeen explained as under:


35/98

UNIVERSE AND SURVAY POPULATION

The universe is the employee working at mill. I have selected 100 employee 40

FROM THE STAFF,60 FROM THE WORKER for the survey.

RESEARCH DESIGN

This research is of EXPLORATARY RESEARCH DESIGN .I have used the

questionnaire method for collecting the data.

ANALYSIS PATTERN

Data collection:

This data is primary data, which I have been collected with the help of

questionnaire. I have prepared a questionnaire on the basis of the factors

responsible for employees commitment in the organization.

MACRO ANALYSIS (Inferences &Interpretation)

The detailed analyses of the results are explained below:

MOST OF EMPLOYEES FEELS THAT:

Most of the staff member and worker feel that organization is quality conscious

toward the employees. This also increases their commitment toward the work and

toward the organization.

Some of the employees feel that thy have proper information about the policies,

practices followed in the organization. But some of employees feel that there is no

proper communication.

Most of the facts related with the organization are hided by the management from the

employees.


36/98

Most of the employees feel that they dont get rewarded for their good performance.

Most of the staffs member feel that their performance is properly measured in the

organization.

RECCOMENDATIONS

The suggestions I have given for the betterment are explained below:

It is very important to provide the opportunity to the employees of the

organization to express their ideas or whatever they want to express.

Management should clear their vision mission and goals towards the

employees in the organization.

Management should involve the workers representatives in managerial

activities so that the transparency could be maintained and through this they

can win the confidence of the employees.

Management should give due importance to mental relaxation &social cultural

development of an employees who strives hard for the company.

Reward or Praise/appreciation works as magic for an individual and motivates

them for work.

Role clarity of each position should be defined and based on that individuals

can plan their work accordingly.

Self-potential system should be encouraged.

There are regular review and comparison of current & past performance to

detect gradual deterioration in the strategy.

Proper cooperation should be necessary in the company.

NOTE: THIS QUESTIONNAIRE IS PURELY FOR ACADEMIC PURPOSES.

ALL THE INFORMATION PROVIDED WOULD BE KEPT CONFIDENTIAL.


37/98

Do you think the organization is quality conscious toward employees?

YES NO

Does the organization have the certification of ISO 9000?

YES NO

Is the organization providing quality assurance system & operation?

YES NO

Does the organization have quality circle?

YES NO

How many people are involved in quality circle?

Below 10 above 10 above 15 cant say

How frequently the organizations have the meeting of quality circle?

Weekly biweekly monthly yearly

Do you about the agenda of information or any other information?

YES NO

Are the organization is going for the quality audit?

YES NO cant say

Does your organization have quality information system?

YES NO cant say

Are the information system is regularly updated?

YES NO cant say


38/98


39/98

Dont know Agree Disagree

Employees are kept updated with changes in job skills & job designs?

Strongly Agree Strongly disagree


Formal or informal method is followed for employees feedback and acting on that

feedback?

Strongly Agree Strongly disagree


Does the organization provide right environment to apply your knowledge from

new programs to the job?

Very much Some whatLittle

Not at all

Do you feel that the organization is a good place to work?

Yes No Sometimes

Do you feel comfortable with rules and policy of the organization?

Yes No Sometimes

What types of relations are you having with your superior, peers and

subordinates?

Good Average Poor

If bad then why it is so?

They are not cooperating.

Their behavior is not good


40/98

There is no proper communication.

All above

Do you feel that you can get ahead in the org. if you make an effort?

Yes No Sometimes

Do you get any reward on your good performance?

Yes No Sometimes

Do you find that your performance is properly measured in the organization?

Yes No Sometimes

Do you find that your job makes the best use of your abilities?

Yes No Some Times

Thank you for your kind co-operation.


41/98

PROJECT REPORT ON PERFORMANCE APPRAISAL SYSTEM AT BSNL

INTRODUCTION TOWARDS PERFORMANCE APPRAISAL SYSTEM

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every managers responsibility, but manyorganizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

People are our most valuable asset is a clich, which no member of any senior

management team would disagree with. Yet, the reality for many organizations are

that their people remain under valued, under trained and under utilized.

Performance Appraisal is the process of assessing the performance and progress of an employee or

a group of employees on a given job and his / their potential for future development. It consists of

all formal procedures used in the working organizations to evaluate personalities, contributions andpotentials of employees.

PREFACE

Managing human resources in todays dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in the organization

has led to increases trends in employee maintenance, job security, etc

My research project deals with Performance Appraisal as carried out at Bhart

Sanchar Nigam Ltd. (BSNLK). In this report, I have studied &evaluated the

performance appraisal process as it is carried out in the company.

The first section of my report deals with a detailed company profile. It includes the

companys history: its activities and operations, organizational structure, etc. this

section attempts to give detailed information about the company and the nature of

its functioning.

The second section deals with performance appraisal. In this section, I have given a

brief conceptual explanation to performance appraisal. It contains the definition,

process and significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the

process of performance appraisal at Bharat Sanchar Nigam Ltd.; this section also

contains my findings, conclusions, suggestions and feedback.

The forth and final section of this report consists of extra information that I related

to the main contents of the report. These annexure include some graphs and


42/98

diagrams relating to the company, graphs relating to the research study and

important documents upon which the project is based.

RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the organization to evaluate the

employees performance. It helps in understanding the employees work culture,

involvement, and satisfaction. It helps the organization in deciding employees

promotion, transfer, incentives, pay increase.

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every managers responsibility, but manyorganizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

People are our most valuable asset is a clich, which no member of any senior

management team would disagree with. Yet, the reality for many organizations are

that their people remain under valued, under trained and under utilized.

The market place for talented, skilled people is competitive and expensive. Taking on

new staff can be disruptive to existing employees. Also, it takes time to develop

cultural awareness, product / process / organization knowledge and experience fornew staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the

effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

Recruitment

The process of recruitment begins after manpower requirements are determined in terms of quality

through job analysis and quantity through forecasting and planning.

Selection


43/98

The selection is the process of ascertaining whether or not candidates possess the requisite

qualifications, training and experience required.

Induction

a) Induction is the technique by which a new employee is rehabilitated into the changed

surroundings and introduced to the practices, policies and purposes of the organization.WHAT IS PERFORMANCEAPPRAISAL?

Performance Appraisal is defined as the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future development. It

consists of all formal procedures used in working organizations and potential of employees.

According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of

an employees excellence in matters pertaining to his present job and his potential for a better job.

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in terms of his

job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged periodically

according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary for making

objective and correct decision an employee.

PROCESS

The process of performance appraisal:1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6.Taking Corrective Action

LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge


44/98

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering

the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing

away with appraisals themselves is like trying to solve the problems of life by committingsuicide. The more logical task is to identify those appraisal practices that are (a) most likely to

achieve a particular objective and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the outset

of the article, I shall briefly review each, taking them more or less in an order of increasing

complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering an

individual's strengths, weaknesses, potential, and so on. In most selection situations, particularlythose involving professional, sales, or managerial positions, essay appraisals from former

employers, teachers, or associates carry significant weight.

.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is

he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that

vary with the job but usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication.FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or

central administrative staff meets with small groups of raters from each supervisory unit and

goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)

help the group arrive at a consensus, and (c) determine that each rater conceives the standards

similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective

standards of comparison between individuals, but it does not involve the intervention of a thirdparty.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,

employees in some organizations are being asked to set - or help set - their own performance

goals. Within the past five or six years, MBO has become something of a fad and is so familiar

to most managers that I will not dwell on it here.


45/98


46/98

gathered in, the assessment from the various quarters are compared with one

another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical

incident method, it focuses on actual behavior and actual results, which can be discussed

objectively and constructively, with little or no need for a supervisor to "play God."Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the

employee meets or exceeds the set objectives, then he or she has demonstrated an

acceptable level of job performance. Employees are judged according to real

outcomes, and not on their potential for success, or on someone's subjective opinion

of their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The

MBO method recognizes the fact that it is difficult to neatly dissect all the complex and variedelements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into

so many constituent parts, but to put all the parts together and the performance

may be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be

reasonably accomplished. Supervisors and subordinates must have very good "reality

checking" skills to use MBO appraisal methods. They will need these skills during the

initial stage of objective setting, and for the purposes of self-auditing and self-

monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid

objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

Measures an employees performance.

Helps in clarifying, defining, redefining priorities and objectives.

Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs.

Helps in identification of personal strengths and weaknesses.

Plays an important role in Personal career and succession planning.

Clarifies team roles and facilitates team building.

Plays major role in organizational training needs assessment and analysis.


47/98

Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and

misunderstandings.

Plays an important tool for communicating the organizations philosophies,

values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as 'rating errors'. These errors can seriously affect assessment results.

Some of the most common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes the

assessment subjective. Subjective assessment defeats the very purpose of

performance appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating willbe revealed to the rate to

detriment the relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the

average or middle of the scale. The attitude of the rater is to play safe. This safeplaying attitude stems from certain doubts and anxieties, which the raters have been

assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performance

influences the evaluation of the entire performance of the individual. The halo error

occurs when an employee who works late constantly might be rated high on

productivity and quality of output as well ax on motivation. Similarly, an attractive or

popular personality might be given a high overall rating. Rating employees separately

on each of the performance measures and encouraging raters to guard against the

halo effect are the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or

low score are given only to certain individuals or groups based on the rater's attitude

towards them and not on actual outcomes or behaviors; sex, age, race and friendship

biases are examples of this type of error.


48/98

Primacy and Regency effects: - The rater's rating is heavily influenced either by

behavior exhibited by the ratee during his early stage of the review period (primacy)

or by the outcomes, or behavior exhibited by the ratee near the end of the review

period (regency). For example, if a salesperson captures an important contract/sale

just before the completion of the appraisal, the timing of the incident may inflate hisor her standing, even though the overall performance of the sales person may not

have been encouraging. One way of guarding against such an error is to ask the rater

to consider the composite performance of the rate and not to be influenced by one

incident or an achievement.

Performance dimension order: - Two or more dimensions on a performance

instrument follow each other and both describe or rotate to a similar quality. The

rater rates the first dimensions accurately and then rates the second dimension to

the first because of the proximity. If the dimensions had been arranged in a

significantly different order, the ratings might have been different.Spillover effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar

rating for current period although the demonstrated behavior docs not deserve the

rating, good or bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

Provide feedback to the reviewer / HOD on the employees

behavioral traits indicated in the PMS Policy Manual

Ensures that employee is aware of the normalization / performance

appraisal process

Address employee concerns / queries on performance rating, in

consultation with the reviewer

b) Reviewer (Reporting Managers Reporting Manager) Discuss with the reporting managers on the behavioral traits of all

the employees for whom he / she is the reviewer

Where required, independently assess employees for the said

behavioral traits; such assessments might require collecting data

directly from other relevant employees


49/98

c) HOD (In some cases, a reviewer may not be a HOD)

Presents the proposed Performance Rating for every employee of

his / her function to the Normalization committee.

HOD also plays the role of a normalization committee member

Owns the performance rating of every employee in the department

d) HR Head

Secretary to the normalization committee

Assists HODs / Reporting Managers in communicating the

performance rating of all the employees

e) Normalization Committee

Decides on the final bell curve for each function in the respective

Business Unit / Circle

Reviews the performance ratings proposed by the HODs, specifically

on the upward / downward shift in ratings, to ensure an unbiased

relative ranking of employees on overall performance, and thus

finalize the performance rating of each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at BHARTI, some conceptsneed to be explained which play a very important role

in using the PMS successfully. They are:

KRAS (KEY RESULT AREAS):The performance of an employee is largely dependent on the KRA score achieved by the employee

during that particular year. Thus, it is necessary to answer a few basic questions i.e.

o What are the guidelines for setting the KRAs for an employee?

o How does an employee write down his KRAs for a particular financial year?

o KRAs: The Four Perspectives.

o How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees performance combined with the general behavioral traits

displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on t

146715446 Hrd Management in It Industry

Documents

Transcript of 146715446 Hrd Management in It Industry