HRM in Insurance with aspect to ICICI prudential 1

Human Resource Management

You often see phrases like these in the annual reports of major businesses: Our people are our greatest asset Nothing is more important than our employees

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Effective human resource management has become more important in recent times. Here are some reasons why: Most businesses now provide services rather than produce goods people are the critical resource in the quality and customer service level of any service business Competitiveness requires a business to be efficient and productive this is difficult unless the workforce is well motivated, has the right skills and is effectively organized The move towards fewer layers of management hierarchy (flatter organizational structures) has placed greater emphasis on delegation and communication As a result, if a business is to be successful and achieve its objectives, then it needs to manage its human resources effectively. So step forward human resource management!

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Human resource management is usually shortened to HRM. It is defined by the CIPD as:

The design, implementation and maintenance of strategies to manage people for optimum business performance
In other words, HRM is about how people are managed by a business in order to meet the strategic objectives of the business. The functional objectives set for HRM need to be consistent with the corporate objectives. Human Resource Management is the core function of all organizations. It ensures that companies have the necessary talent required to operate effectively. It manages the recruitment and selection of new employees as well as the training and development of new and current employees. Additionally, it establishes and administers compensation plans and employee benefit programs.

HRM in Insurance with aspect to ICICI prudential

HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment.

Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced.

HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

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From the smallest to the largest organization, it is vital that the human resources be managed effectively for the organization to prosper and survive. If these human resources are neglected or mismanaged, the organization is unlikely to do well and may even fail.

Hence Human resource management (HRM) has gained increasing importance and is today viewed as a fundamental aspect of management. Human resource management has become task number one for many organizations.

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Four Fundamental principles of HRM

Human resources are the most important assets an organization has and their effective management is the key to its success.

Organizational success is most likely to be achieved if the personal policies and procedures are closely linked to corporate objectives and strategic plans.

Organizational culture, values and climate significantly influence managerial behavior and exert a major influence on the achievement of excellence.

Human resource management is concerned with integrationgetting all members of the organization involved and working together with a sense of common purpose.

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TOOLS OF HUMAN RESOURCE MANAGEMENT

The key is to remember that HRM is a strategic approach. HRM uses a variety of tools to help meet the strategic needs of the business, each of which needs together in an integrated way. The key tools are:

Workforce planning

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Recruitment & selection

Training & development

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Rewarding and motivating staff

Communication

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Roles and responsibilities (organizational structures)

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Emergence of insurance sector

There are three eras which has passed till the 21st century. Colonial Era Nationalization Liberalization

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Colonial Era
In the colonial era the 1st insurance company was established in the year 1850. The company is named by The Insurance Office In 1667 Nicholas Barbon was instrumental in forming the first actual insurance company. It was known as "The Insurance Office". So, what happened to the first insurance company, The Insurance Office? Well, nobody is exactly sure, but it eventually went out of business. The oldest documented insurance company today dates back to 1710. Originally known as the Sun Fire Office, it started not all that long after the original Fire Office, and probably while the first was still in business. The Sun Fire Office, through many mergers and acquisitions, is today known as Royal & SunAlliance, Britain's largest insurance company. It was observed that there must be some rules and regulations to be implemented so to avoid the everyones choice of plan. So for the smooth and disciplinary functioning The Insurance Act was implemented in the year 1938.

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Nationalization
Nationalization (British English spelling nationalization) is the process of taking a private industry or private assets into public ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being transferred to the public sector to be operated and owned by the state. The opposite of nationalization is usually privatization or de-nationalization, but may also be municipalization. Industries that are usually subject nationalization include transport, communications, energy, banking and natural resources though there are other areas and there have even been calls for the nationalization of the legal service. A renationalization occurs when state-owned assets are privatized and later nationalized again, often when a different political party or faction is in power. Nationalization has been used to refer to either direct state-ownership or management of an enterprise or to a government acquiring a large controlling share of a nominally private, publicly listed corporation.

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Liberalization
The world has become a global village. The Liberalisation, Privatization and Globalisation (LPG) wave has sweeped across the global economies. The two pillars of India's economic policy before 1991 have been protection and public sector. Thus the New Economic Policy 1991 was a departure from the regulated planned economic tradition to that of LPG movement. After nearly a decade of intense debate a consensus developed in India for ending the public sector monopoly in insurance and opens the industry to private sector participants subject to suitable prudential regulation. Today, to the credit of combined efforts of both the regulator and industry players, benefits of insurance are widely acknowledged, public confidence in the industry has been very much restored and the industry has become more dynamic. Following the recent reform in the insurance sector, Indian insurance industry is moving ahead. The main element in the reform process was the opening up of the insurance industry in 2000 with foreign direct

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investment permitted up to 26 per cent of equity. With this change global insurers have rushed into the country to capture the market. The reforms have two objectives. One to capture a vast untapped population under suitable insurance cover. The second, to create a more efficient and competitive insurance industry and elevate the performance of insurance companies. The Insurance Regulatory and Development Authority (IRDA) since its incorporation as a statutory body in April 2000 has regulated the opening of insurance sector which has seen 15 life and 23 non life private companies launch their operations in India In the post liberalization phase, insurance industry has witnessed beneficial effects of competition. The market for pension product is developing and there is a unit linked insurance plan generated by private players. Opening of the insurance market to private and foreign players and a conversion of a monopolistic market to a liberalized one has transformed the insurance industry in India. Best international practices in service and operational efficiency through use of latest technologies, need based

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schemes etc. are available to customer. The credit for enlarging the insurance sector goes to both the public and private sector. While the private sector has come up with aggressive marketing strategy to establish their presence, the public sector has in turn redrawn its priorities and revamped their marketing strategies to reach out to greater mass of people It is in this backdrop of liberalisation of insurance sector the paper has analysed the new dimensions post liberalisation like raising of foreign direct limit, micro insurance in rural market, bancassurance, reinsurance and alternate risk transfer (ATR).

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History of insurance
In some sense we can say that insurance appearssimultaneously with the appearance of human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbours are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where a modern money economy with its financial instruments is not widespread.Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or

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distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the

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assessment was registered in special offices.The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much." A thousand years later, the inhabitants of Rhodes invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were deliberately jettisoned in order to lighten the ship and save it from total loss. The ancient Athenian "maritime loan" advanced money for voyages with repayment being cancelled if the ship was lost. In the 4th century BC, rates for the loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance. The Greeks and Romans introduced the origins of health and life

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insurance c. 600 BCE when they created guilds called "benevolent societies" which cared for the families of deceased members, as well as paying funeral expenses of members. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. Some forms of insurance had developed in London by the early decades of the 17th century. For example, the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Of the value of 100 each, one relates to the safe arrival of Hayman's ship in Guyana and the other is in regard to "one hundred pounds assured by the said Doctor Arthur Ducke on my life". Hayman's will was signed and sealed on 17 November 1628 but not proved until 1633.

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Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is an insurance market rather than a company) for marine and other specialist types of insurance, but it operates rather differently than the more familiar kinds of insurance. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire.[19] Franklin's company was the first to make contributions toward fire prevention.

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In the United States, regulation of the insurance industry primary resides with individual state insurance departments. The current state insurance regulatory framework has its roots in the 19th century, when New Hampshire appointed the first insurance commissioner in 1851. Congress adopted the McCarran-Ferguson Act in 1945, which declared that states should regulate the business of insurance and to affirm that the continued regulation of the insurance industry by the states is in the public's best interest. The Financial Modernization Act of 1999, commonly referred to as "Gramm-Leach-Bliley", established a comprehensive framework to authorize affiliations between banks, securities firms, and insurers, and once again acknowledged that states should regulate insurance. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through the National Association of Insurance Commissioners. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to the banking industry.

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History of insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be redistributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of

HRM in Insurance with aspect to ICICI prudential

the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

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In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance

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Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business.

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In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

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Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

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Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.

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In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

HRM in Insurance with aspect to ICICI prudential

Role of HRM In ICICI Prudential

As part of this assignment we look forward to know of how Human Resource Planning HRP is implemented in ICICI Prudential Life Insurance Company. Here we discuss by anticipating the usefulness of Human Resource of ICICI Prudential in present and future strategic management and its importance. It also tells us about the impact of HR planning on strategic plans of ICICI Prudential. Besides discussing of how evaluation process of present legal requirements, it also describes the ICICI Prudentials process of recruitment, selection of employees from external sources depending upon the company requirements and legislations. ICICI Prudential has got its own style of organizing the business process representing a specific kind of cultures and sub-cultures within the organization. This in turn affects the recruitment and retention processes of employees of the organization. Various Issues were taken in to consideration to

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maintain the work life balance and also different kinds of practices in work that keep changing often. As it an insurance company which deals with huge financials handlings there might be many grievance situations pertaining to the staff and customer as well. Many issues like fraudulent, Malpractices and other issues of disciplinary may lead to dismissals. These may further lead complex issues; ICICI prudential has taken necessary actions against such obligations with the help of external agencies like ACAS, Employment Tribunals. Apart from all the above we are also going know how effectively HRP of ICICI Prudential has managed in performing well at all levels using external resources and technological & Cultural benefits that made the work practices easier.
ICICI PRUDENTIALS STRATEGIC HUMAN RESOURCES: STRATEGIC CAPABILITY OF ICICI PRUDENCIAL:

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ICICI Prudential Life has got excellent strategic capabilities in terms of Resource-based, Dynamic Capabilities and was successful in developing the strategic capabilities. Resource Based Strategy in ICICI Prudential: It has got various kinds of physical sources such the building and branches of ICICI Prudential are spread across the world. In

HRM in Insurance with aspect to ICICI prudential

India there are about 1900 branches and advisor base of 210,000 which are well equipped with all infrastructures furnished for effective running of organization. Moreover enough utilities are provided for the efficiency of service providing to the customers as well as the employees of the organization. Raw materials like broachers and product portfolios are well designed to maintain the strategic pathway in production processes. As it is a service based company employees are the key asset to the organization. Financial resources of ICICI Prudential are organized with Capital investments and enough flow of funds in terms of cash through Creditors and debtors of the organization. Intellectually the company has a good reputation and brand image in the market and they have got patents of their products along with systems and data storage devices. ICICIs employees play a vital role in business process linked with many advisors and franchises that have thorough knowledge & skills servicing the customers.
Types of Resources and competencies in ICICI Prudential:

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Threshold resources of ICICI had appropriate logistics which satisfy the minimum requirements of the customers and there by survive in the market. ICICI Prudential has

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Unique resources yet provide unique product with exceptional services gaining competitive advantage adding value & inimitable thus Winning Core Competencies against the competitors. The company rarely but has got the Redundancy competencies in solving issues of timing fulfilling the need of customers. According to Hamel, and Prahalad, 1994, ICICI Prudential has gained Core competency with their skills and expertise products and they designed benefits to customers moving from core products of Life Insurance to Health Insurance segment where they could find target customers and satisfy them by providing benefits at the end products.
DYNAMIC CAPABILITIES OF ICICI PRUDENTIAL:

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ICICI Prudential showed its dynamic capability by renovating its products and services at a wide range. It enhanced features of its services using innovation considering environmental aspects and technological changes. ICICI Prudential on the other hand has Perceived Strategic Management roles extensively to match the requirements along with internal and external organizational skills and competences.

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The dynamic approach of ICICI Prudential has a concept called Learning which is a ongoing process of implementation of tasks and work performances that are improvised by knowing loops from past experiences and retrieving it with new developments to it move on faster.
Developing Strategic Capability in ICICI Prudential:

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With the change in environment and market structure ICICI prudential always kept identifying the customers specifications regarding the services and the products. The company has enhanced its work process through a strategic approach and developed it capabilities in a systematic format to gain strategic advantage.
STRATEGIC CAPABILITY AND HUMAN RESOURCE OF ICICI PRUDENTIAL:

According to Johnson, Scholes., and Whitting., 2008, Human Resource of ICICI Prudential had chosen 4 ways of improvising employees performance strategically enhancing organizational capability. Targeted training and development in ICICI Prudential: Here the training must be like an added value to the existing skills so as to perform well thus attaining competence.

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Staffing policies of ICICI Prudential are designed in such a way that the people are developed and promoted so as to reach the targets at a faster pace as compared to the others. Organizational Learning of ICICI Prudential: ICICI Prudential gives facts and figures of experiences, knowledge of approach and services and measures to encourage the skills under common culture to achieve a common goal. ICICI Prudentials way of Developing People awareness: ICICI train every individual within the organization to know the roles and responsibilities there by work according with a purpose of strategy.
PUTTING TOGETHER AN HR STRATERGY OF ICICI PRUDENTIAL:

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The human resource strategies of ICICI are distinguished by hard and soft ways where in competences and resources comes under and a kind of approach that motivates to gain competitive advantage.
Linking ICICI Prudential and HR Strategies of it:

In ICICI Prudential the HR strategy acts as a medium between the resource based and the Business processes of the organization.

HRM in Insurance with aspect to ICICI prudential

Johnson, Scholes, and Wittington., 2008 stated that Resource strategies are inter-related both between the strategies of business and with every departments pertaining to every individual in each divisions like Staff oriented, technology, information system, finance related matters of organization like ICICI Pru. Apart from this ICICI Prudential has also set Long term and Short term strategies for the improvement of the organization and the people in it. Long term goals mainly comprise of future goals pertaining to leaders, building up the workforce and the organization on the whole. Whereas short term goals are those which are analyzed through GAP Analysis which mostly deals with current skills and abilities and people, performance appraisals, recruitment and reward system also with improvement in HR practices and also bringing new practices within the organization. To fulfill the future needs of the organization strategies like recruitment and training & development, renovating and restructuring, outsourcing and other join collaborations helped ICICI Prudential reach its future goals successfully.

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Components of HR Strategy in ICICI Prudential:

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The main key components of ICICIs HR strategy are given as follows: ICICIs People as a Resource: This is a hard approach which comprise of various functions of audit that involve people oriented core competency for future policies, targets and goals are set here along with performance appraisals, recruitment, retentions and training & development in the workforce take place in this resource. People and Behavioral approach of ICICI: This is a soft based approach that deals with cultural aspects and issues of changing people behavioral aspects along with changing style and environment. ICICI Prus way of organizing people: In this Hr functions play a vital role and indulge in various functions such as regulatory, service providing managerial roles along with structure of ICICI and its processes.
ICICI PRUDENTIALS ORGANIZATIONAL DESIGN:

It is the major part of Human resource strategies where in it deals with cultural issues like norms, values and

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organizational paradigm. Besides this it has regulates the responsibilities with linkages. ICICI Pru has got a noncomplex structure of cultures showing their uniqueness in it.
TYPES OF ORGANISATIONAL DESIGN IN ICICI Pru:

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Task Culture in ICICI deals with various issues and problems from all the departments of the company. This culture has working bodies and group committees where in research and developmental activities take part. It gather the whole of information from all the resources and departmental functions to work on it specializes task teams are involved for a short period of time who need work on a common task to meet future requirements. Power Culture is not much related to ICICI Prudential because this kind of culture is one person based control who likes to take control and react to situations. Role Culture in ICICI: It is such a kind of culture where work roles an organization are segregated to different levels and functions and assigned to employees where they need to perform on their particular. ICICI Prudential follows the role culture in operating its functions. This improved not only the productivity but also the stability in performing the roles increasing the revenues to the organization. Though role

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culture states the weakness in adapting to changes in generating but ICICI Prudential was even successful in it. Apart from this there is also Person culture which mostly deals with charities and this culture no way related with ICICI Prudential Life Insurance.
ROLES OF DIFFERENT WORKER GROUPS IN ICICI PRUDENTIAL:

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There are 3 different worker groups in ICICI and are stated below; Core Workers in ICICI: This group consists of different functional departments like sales, finance and human resource that are knowledge based which directly contribute to the core business of ICICI. Insource Workers in ICICI: This group of work deals with temporary contractors, part-time employees and brokerage agents of ICICI Prudential. Outsource Work of ICICI: The IT related work, payroll processing and taxation based work is outsourced to other companies which specialized in those fields.

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ICICI PRUDENTIAL METHOD OF ATTRACTING TALENT:

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The recruitment is nothing but choosing the right candidate for the right job considering specific skills and requirements of the organization. In ICICI Prudential the basic task of HR is to know what exactly the organization is looking out for and perfectly designing the job description mentioning the roles and responsible. Moving further the Human resource department should attract the qualified candidates through diversified methods. The Human Resource choose various sources of attracting people like giving demos in the colleges and universities to pool out the talented candidates and attract them by coding the success rates of the company and winning stories of existing employees and also code the benefits and growth within the company. The other mode of attracting experienced talent is by showing the exciting working environment with a challenging position along with good pay package and also hierarchal growth in position of employees and many other benefits that are offered by the company.

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In attracting these relevant candidates ICICI Prudential does advertise using Marketing methods internal and external means. The internal means of attracting the candidates is through the referral forum set in companys web page where in all the existing employees who are willing to relocation or move to other department operating other functional roles can look at that forum and know about vacant positions in the company. They employees can even refer their friends or network group who suit to that position. External means such as Media & Paper advertisements, holding at the public places and at times the company even approach consultancies who supply manpower. Rewards were given to the prospective workers motivating them to work efficiently and make them active in fulfilling the requirements of the organization. This can also quoted as a Marketing Exercise of the ICICI Prudential through Recruitment process with which the company gets attention of public towards it.
Recruiting Process of Talent hunt in ICICI Prudential:

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The process of Recruitment is done through various factors and the process is divided into 2 types:

HRM in Insurance with aspect to ICICI prudential

Internal Recruitment External Recruitment Internal Recruitment Process in ICICI has referral forum in companys web-page called ATLAS where in job requirements are posted. And for few particular positions like Managerial roles in the organization they trace out the performances of the existing employees and conduct a review of selection process. External Recruitment Process in ICICI has diversified methods such as souring from Manpower suppliers, conducting interviews for the candidates at university campuses. ICICI Prudential often conducts walk-in interviews which is a time and cost saving method. It had also tied-up with few online portals where they can post the job requirements at a regular basis. Apart from these ICICI prudential also pull out candidates from various sources like Media & communication, advertisements and cross communication sources.

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Job Description and Person Specification in ICICI Prudential:

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The job description comprises of roles and responsibilities of an individual who is supposed to perform after getting a specific job using skills and abilities. The candidate should be suitable enough to apply for the required post. The person should be able to produce relevant documental proofs of qualification and experiences. They need to health enough to perform the job under pressures and flexible to work and shouldnt have any criminal offenses in the past. Effective communicational skills are must to perform any kind of job to understand and interpret the work. Positive driven attitudes gives positive results of the work. Reviewing the Effectiveness of Recruitment in ICICI Prudential, the HR department play major role in recruitment process. The effective process of recruitment starts from screening the profile of the candidates and filter them which are much suitable for the requirement. The selected profiles were considered and called for preliminary interview which will taken by the HR consultant. The candidates must fill the application form furnishing their details. These details are stored in the database of ICICI Prudentials called as PACE which consists of all the details of the candidates who applied for the job. This help in easy tracking candidate information.

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SELECTION AND INDUCTING TALENT:

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According to Torrington, et al derived 7 criteria for Selection process; it is sure that ineffective selection process affects the organization in terms of money, time and poor performances.' In ICICI the selection method has assessment centers for selecting professionals like managers and Technicians, Developers etc., Acceptable and appropriate test is conducted in ICICI Prudential to entry level and senior manager posts. In the process of selection the application forms and CV are considered with which they are shortlisted for the interview. ICICI has self-assessment form where candidate assess themselves to the post. Interview for selection can be done through different ways depending upon the post and the requirement. Managers in ICICI use stereotypic and halohorn effects while selecting the candidates. After the selection process the selected candidates are inducted which tells about the ICICI Prudentials Mission vision and what is their limitation and what is the new employees role in performing work.

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ICICI PRUDENTIAL CULTURE AND WORKING PRACTICES:

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According to Edger S., and Hofstede, Keuning, 1998; Culture is defined as The method of shared basic assumptions and beliefs with internal as well as external values, by the employees of the organization to move forward positively avoiding problems by restricting the taking for granted environment. Cultures are diversified in ICICI Prudential depending the location, work pattern and the geographically into many subcultures. The Marketing and sales department cultural approach is different from finance department these are called as Sub- Cultures. As the company has spread worldwide they follow different cultures for different cultures but the goal stands the same. It has become important for the company to organize cultures depending upon the hierarchy levels and working areas and departments. The environmental changes also made ICICI prudential to change their cultural approach towards the customers. This made ICICI Prudential receive award as Best cultural company of the year 2008. According to Dobson, 1988, analyzing and changing Culture of ICICI Prudential in terms of stories and rituals, formal

HRM in Insurance with aspect to ICICI prudential

activities avoiding informal gossips that may affect the company. They undergo change in recruitment process and redundancy policies of ICICI Prudential there reorganize the things and communications methods, systems, procedure and policies are even changed considering environmental and technological effects. CHANGING OF WORK PRACTICES OF ICICI PRUDENTIAL shown a positive as well as a negative effect with which the reputation of company changed going ups and down, employees were deprived with marketing challenges and sales targets change made employees to leave the organization frequently with which there was cost effectiveness. All the factors like demographic, diversifying issues, market position and place, customers perception and demand in the market and even skills shortages.
The Work-Life Balance in ICICI Prudential:

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According to David Clutterbuck, considering the culture and the work practices the work-life balance will be affecting where employees need to be satisfied with the job and maintain a equal balance between given time and effort to work which gives life into other aspects.

HRM in Insurance with aspect to ICICI prudential

Employees have to manage their work in a systematic manner so as to benefit him as well as the organization. Social and economic changes show the impact on work-life balance.
LEGAL REQUIREMENTS AND EXTERNAL AGENCIES OF ICICI PRUDENTIAL:

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There should be proper fairness in recruiting and selection process by choosing the right candidates for the right post and documenting the information of selection process effectively to avoid irrelevance in selection. Proper protection also is given to employees of the organization giving them insurance coverage and Medical benefits. The information of all employment patterns is correctly maintained. Proper guidelines and procedure are to be followed to with the help of Equal Opportunities Commission (EOC), Commission for Racial Equality (CRE) and also with ACAS-Advisory Conciliation and Arbitration Services are linked to ICICI Pru. Grievance in ICICI: According to Ankur, chabra., 2009 grievance are the symptoms of enterprise conflicts. This is done when an employee does any in disciplinary or

HRM in Insurance with aspect to ICICI prudential

fraudulent actions but at times if there any unfair dismissal then this may lead to conflicts. Role of ACAS: The role of ACAS is: Arbitration - Both the parties are called for third party investigation about dispute. Conciliation -Communication gaps are cleared bringing both together and assisting them Meditation - Same as arbitration but mediator has major in solving the problem. The different cultures with different sub cultures are implemented within various functions and departments of the ICICI Prudential LIFE. ICICI had Strong legal requirements and tie-ups with external agencies to handle the conflicts in the Organization. Objective Insurance Advisors or Financial Advisors play very Important role for the Company, because this Advisors is the present and future assets of the company , as they treated like a Partner of the ICICI Prudential Life Insurance Company Ltd. . The Primary Objectives of ICICI

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HRM in Insurance with aspect to ICICI prudential

Prudential is to Improve Knowledge about the Insurance Industry and How to achieve the goals and Objectives in order to face the Competitive World by knowing Personality Development Skills . The Secondary objective was to find out - 1. Why Batches getting Cancel ? 2. Exam Attendance 3. Exam Pass-out Ratio Our Project Recruitment and Training and Development of ICICI Prudential which mainly focus on finding out Importance of Training and Development for Insurance Advisors. Theory and Concept Training generally refers to reaching of new skill in professional field of the employee. Like an employee being taught to operate another machine, or to perform a new operation in the same machine. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons, meditation exercises, soft skills training, etc. While training is expected to reward the company immediately in terms of better productivity of employee, Development does not lead to a by immediate and tangible benefits to the company. At the best, there might be some intangible benefits in the long run, like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on medical ground etc.

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HRM in Insurance with aspect to ICICI prudential

Dividing line between training and development is expectation of immediate benefits. Thus, in case a program, generally qualifying as development program, is directly related to employees job skills, like Communication Skills course for telephone attendant or receptionist, will qualify as training and not as development. Same program for someone in back office would be termed as Development Program. Definition of Training & Development : Training & Development is any attempt to improve current or future employee Performance by improving his performance capabilities and potential through learning, usually by changing the employees attitude or increasing his or her skills and knowledge .The need for Training and Development is determined by the employees performance deficiency, computed as follows Training & Development Need = Standard Performance - Actual Performance Objectives of Management Development Programs ( MDP ) : To make the managers - Self Starters - Committed Motivated - Result Oriented - Sensitive to environment Creating the self awareness - Develop inspiring leadership styles - Teach them about effective Communication Meaning of Recruitment: The human resources are the most important assets of an organization. The success or failure of an

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HRM in Insurance with aspect to ICICI prudential

organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or perform the activities of an organization, therefore, we need to recruit people with requisite skills, qualifications and experience. While doing so, we have to keep the present as well as the future requirements of the organization in mind.

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Definition of Recruitment: Recruitment is the process of

locating and encouraging potential applicants to apply for existing or anticipated job openings. It is actually a linking function, joining together those with jobs to fill and those seeking jobs. Recruitment, logically, aims at (i) attracting a large number of qualified applicants who are ready to take up the job if its offered and (ii) offering enough information for unqualified persons to self-select themselves out( for example, the recruitment ad of a foreign bank may invite applications from chartered accountants who have cleared the CA examination in the first attempt only.) Recruitment is the

HRM in Insurance with aspect to ICICI prudential

discovering of potential applicants for actual or anticipated organizational vacancies. Recruitment Policies and Procedures: One of the first steps in planning for the recruitment of employees into the organization is to establish proper policies and procedures. A recruitment policy indicates the organizations code of conduct in this area of activity. A typical policy statement for recruitment may run thus : In its recruitment activities, the company will : Advertise all Vacancies internally Reply to every job applicant promptly Inform job applicants the basic details and job conditions of every job advertised. Process all applications with efficiency and courtesy Seek candidates on the basis of their qualifications Aim to ensure that every person invited for interview will be given a fair and through hearing.

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Company Profile About ICICI Prudential Life Insurance Company Ltd: 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 equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In 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 6,15,000 policies. The company has a network of about 56,000 advisors; as well as 7 Banc assurance and 150 corporate agent tie-ups. For the past four 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.

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SOME FACTS :
1. Life Insurance Company (LIC) invested 26% in ICICI Prudential Company. 2. Over 2,70,000 Financial Advisors which includes brokers, housewives, Chartered Accountants, retired Persons, Businessmen, Graduate and Undergraduate Students etc. 3. Over 16 million customers across the globe. 4. Present in 14 countries throughout Asia. 5. 75 years of experience in Asia. 6. Given Insurance to Titanic that sank. 7. Prudential sponsored Cricket World Cup in 1983.

Vision: - To make ICICI Prudential the dominant Life and

Pensions player built on trust by World-class People and Service. This is what company hopes to achieve: ? Understanding the needs of customers and offering them superior products and service? Leveraging technology to

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service customers quickly, efficiently and conveniently. ? Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to Companys policyholders ? Providing an enabling environment to foster growth and learning for Companies employees ? And above all, building transparency in all Companys dealings. The success of the company will be founded in its unflinching commitment to 5 core values ------- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of people and the way they work. Company believes that it is on the threshold of an exciting new opportunity, where it can play a significant role in redefining and reshaping the sector. Given the quality of parentage and the commitment of its team, there are no limits to its growth.

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PROMOTERS ICICI Bank: ICICI was founded by the

World Bank, Government of India and representatives of the private sector in 1955 to encourage and assist industrial development and investment in India. ICICI Bank is Indias second-largest bank with total assets of about Rs.112, 024 Crore and a network of about 450 branches and offices and about 1750 ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs.1637 Crore for the year ended March 31, 2004. ICICI Banks equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).The Various segment of ICICI are . Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services

HRM in Insurance with aspect to ICICI prudential

to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US $300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. The company has six Bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co- operative banks, as well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. ICICI Prudential has recruited and trained about 2,14,000 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.

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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 27 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder.

Savings Solutions:
SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection. Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. Save?n?Protect is a traditional endowment savings plan that offers life protection along with adequate returns. CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset. LifeTime & LifeTime II 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.

HRM in Insurance with aspect to ICICI prudential

LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market. Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75. InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms. Lifeguard is a protection plan, which offers life cover at very low cost. It is available in 3 options- level term assurance, level term assurance with return of premium and single premium.

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HRM in Insurance with aspect to ICICI prudential

Child Plans:
SmartKid education 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.

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Retirement Solutions: Forever Life is a retirement product

targeted at individuals in their thirties. SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover. Market-linked retirement products LifeTime Pension II is a regular premium market-linked pension plan Life Link Pension II is a single premium market-linked pension plan. Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses. ICICI Prudential also launched- Salaam Zindagi, a social sector group insurance policy targeted at the economically underprivileged sections of the society.

HRM in Insurance with aspect to ICICI prudential

Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance 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 or opting for a partial commutation of the annuity at the time of retirement. ICICI Pru Group Term Plan: ICICI Pru?S 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. Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to

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HRM in Insurance with aspect to ICICI prudential

the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the 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. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. 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. Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring benefits are payable to the life

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What Company looks in Insurance Advisors? ICICI Prudential Life Insurance Company Ltd. wants from the Insurance Advisors: a) Knowledge b) Professionalism c) Hard work d) Patience e) Sincerity f) Target Achieve

What Insurance Advisors wants from IPRU? Insurance Advisors wants from the IPRU: a) Commission b) Knowledge c) Rewards and Recognition d) No Target e) Flexible Working hours f) Trustworthiness

Why Training and Development is required? a) How to pitch the Product b) Provide Marketing knowledge to the Insurance Advisors c) To motivate the Insurance Advisors d) To Improve Communication Skills e) To face the Competitive World f) Lack of Professionalism g) Increased Productivity / quality of work/ Low Business h) Improve morale of the workforce

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CONCLUSION:

ICICI Prudential Life Insurance has effective implemented it Human Resource strategies in HR planning going out with an outstanding resource based strategy and also shown dynamic capability and developing them. Human resource strategies are well linked to the Business process of ICICI Prudential and designed the organization in such way that goes with well worker groups. Practices like Attracting, Recruitment and selection procedures of ICICI Prudential have diversified means fulfilling the requirements of the company perfectly.