INTRODUCTION

‘People are our greatest asset’ is a mantra that companies have been chanting for
years. But only a few companies have started putting Human Resources Management
(HRM) systems in place that support this philosophy. There are a number of challenges
in the Indian industry which require the serious attention of HR managers to ‘find the
right candidate’ and build a ‘conducive work environment’ which will be beneficial for the
employees, as well as the organization. The industry is already under stress on account
of persistent problems such as attrition, confidentiality, and loyalty. Other problems are
managing people, motivation to adopt new technology changes, recruitment and
training, performance management, development, and compensation management.
With these challenges, it is timely for organizations to rethink the ways they manage
their people. Managing HR in the knowledge based industry is a significant challenge
for HR managers as it involves a multi task responsibility. In the present scenario, HR
managers perform a variety of responsibilities. Earlier their role was confined to
administrative functions like managing manpower requirements and maintaining rolls for
the organization. Now it is more strategic as per the demands of the industry.

Managing People

In view of the industry dynamics, in the current times, there is a greater demand for
knowledge workers. Resumes abound, yet companies still fervently search for the
people who can make a difference to the business. Often talented professionals enjoy
high bargaining power due to their knowledge and skills in hand. The attitude is different
for those who are taking up responsibilities at a lesser age and experience. These
factors have resulted in the clear shift in approach to individualized career management
from organization career commitment.

Motivating the Workforce

As the competition is growing rapidly in the global market, a technological edge

supported by a talent pool has become a crucial factor for survival in the market.
Naturally, as a result every organization gives top priority to technology advancement
programs. HR managers are now performing the role of motivators for their knowledge
workers to adopt new changes.

Competency Development
Human capital is the real asset for any organization, and this makes the HR role
important in recruiting, managing, and retaining the best. The HR department has a
clear role in this process and determines the success tempo of any organization. An
urgent priority for most of the organizations is to have an innovative and competent HR
pool; sound in HR management practices with strong business knowledge.

Recruitment and Training

Recruitment has become a major function from an imperative sub system in HR,
particularly in the industry. HR managers play a vital role in creating assets for the
organization in the form of quality manpower. Attracting new talent also is a top priority
for software companies, but less so for smaller companies. Another challenge for HR
managers is to put systems in place to make the people a perfect fit for the job. Skill
redundancy is fast in the industry. To overcome this problem, organizations give the
utmost priority to training and skill enhancement programs on a continuous basis. Many
companies are providing technical training to the employees on a quarterly basis. These
trainings are quite useful also in terms of providing security to the employees.

The Trust Factor

Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is
essential that Our Company takes more initiatives to improve the security levels of the
employees.

Work life Balance Factor

Another dimension to the challenges faced by our company is the growing pace of
talent acquisition. This aspect creates with it the challenge of a smoother assimilation
and the cultural binding of the new comers into the organization fold. The pressure of
delivering the best of quality services in a reduced time frame calls for ensuring that
employees maintain a work life balance.
Attrition/Retention of the Talent Pool

One of the toughest challenges for the HR managers in the industry is to deal with the
prevalent high attrition levels. Though there is an adequate supply of qualified staff at
entry level, there are huge gaps in the middle and senior level management in the
industry. Further, the salary growth plan for each employee is not well defined. This
situation has resulted in increased levels of poaching and attrition between
organizations. The industry average attrition rate is 30–35 per cent and could range up
to 60 per cent.

Bridging the Demand Supply Gap

HR managers have to bridge the gap between the demand and supply of professionals.
They have to maintain consistency in performance and have to keep the motivation
levels of employees high, despite the monotonous nature of work. The same also leads
to recurring training costs. Inconsistent performance directly affects revenues. Dwindling
motivation levels lead to a loss of interest in the job and a higher number of errors.

The most common purpose for surveying employees is satisfaction. Employee

satisfaction surveys deal with workplace issues, such as benefits, commitment to
diversity, and effective communications. The data from these surveys helps paint a
portrait of employee attitudes and opinions. These kinds of surveys are particularly
useful after a company has undergone some sort of change, such as a layoff, an
acquisition, or a new department head. They also help employers isolate the root
causes of persistent problems, such as low productivity or high expenses.

Employee satisfaction surveys help employers measure and understand their

employees' attitude, opinions, motivation, and general satisfaction with their work
environment. Use employee satisfaction surveys to inform employee decision making,
benefits, work needs and more.
Employee satisfaction surveys provide valuable data that can ultimately save company
money. Our employee satisfaction surveys can:

 Measure employee satisfaction levels.

 Track changes in employee satisfaction over time.

 COMPANY PROFILE

History

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster
existed in primitive men also. They too sought to avert the evil consequences of fire and
flood and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental
Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil. All the insurance companies established during that period
were brought up with the purpose of looking after the needs of European community
and Indian natives were not being insured by these companies. However, later with the
efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies
started insuring Indian lives. But Indian lives were being treated as sub-standard lives
and heavy extra premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance company in the year
1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly
patriotic motives, insurance companies came into existence to carry the message of
insurance and social security through insurance to various sectors of society. Bharat
Insurance Company (1896) was also one of such companies inspired by nationalism.

The Swadeshi movement of 1905-1907 gave

rise to more insurance companies. The United
India in Madras, National Indian and National
Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative
Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great
poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and
Swadeshi Life (later Bombay Life) were some
of the companies established during the same
period. Prior to 1912 India had no legislation
to regulate insurance business. In the year
1912, the Life Insurance Companies Act, and
the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it
necessary that the premium rate tables and periodical valuations of companies should
be certified by an actuary. But the Act discriminated between foreign and Indian
companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. 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.

The demand for nationalization of life insurance industry was made repeatedly in the
past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act
1938 was introduced in the Legislative Assembly. However, it was much later on the
19th of January, 1956, that life insurance in India was nationalized. About 154 Indian
insurance companies, 16 non-Indian companies and 75 provident were operating in
India at the time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an Ordinance,
and later, the ownership too by means of a comprehensive bill. The Parliament of India
passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life
Insurance Corporation of India was created on 1st September, 1956, with the objective
of spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new branch
offices were opened. As a result of re-organisation servicing functions were transferred
to the branches, and branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 crores of New
Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and
it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with
re-organisation happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices,
8 zonal offices, 1381 satallite offices and the Corporate office. LIC’s Wide Area Network
covers 113divisional offices and connects all the branches through a Metro Area
Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info
Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other
conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past
records. LIC has issued over one crore policies during the current year. It has crossed
the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families.

Some of the important milestones in the life insurance business in India are:
  1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.

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

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

 1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

 1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

 1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalised. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.

 The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.

“ Some of the important milestones in the general insurance business in India

are:

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

 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.

 107 insurers amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.

 Every day we wake up to the fact that more than 250 million lives are part
of our family called LIC.

 We are humbled by the magnitude of the responsibility we carry and

realise the lives that are associated with us are very valuable indeed.

 Though this journey started over six decades ago, we are still conscious of
the fact that, while insurance may be a business for us, being part of
millions of lives every day for the past 61 years has been a process called
TRUST.
 Objectives of the Study
The objectives of the study are as follows:

(a) Measure Agent satisfaction of LIC

(b) To assess the general attitude of the LIC Agent towards the company.

(c) To assess the level of commitment across process and facilities.

(d) To analyze the strengths and weakness of LIC

(e) To help the management of the company to know about the actions to be taken
to increase the level of satisfaction of the Agents.
 RESEARCH METHODOLGY

Research is a careful inquiry or examination to discover new information and to expand

and verify existing knowledge. According to Clifford Woddy, Research is defined as “the
process which includes defining and redefining problems, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.”

Employee Satisfaction Measurement.

Employee satisfaction has been defined as a function of perceived performance and

expectations. It is a persons’ feeling of pleasure or disappointment resulting from
comparing a products’ outcome to his/her expectations.

Data Collection

Following are the sources for the collection of data:

(a) Primary source

(b) Secondary source

Data Collection Methods

There are three main methods of data collection

(a) Observation

(b) Experimentation

(c) Survey

(d) Direct interview method

I have selected survey method of data collection which is one of the very common and
widely used methods for collection of primary data. We can gather wide range of
valuable information about the behavior of the employee’s viz. attitude, motive and
options etc.

Primary Data. The Primary Data required for this project work was collected
through Questionnaires. This method consisted of preparing detailed questions covering
the Employee satisfaction standards in the Company. Thereafter it was distributed
amongst a total of 30 personnel of the Company(respondents) who were randomly
selected. Further, no names were sought from those filling in this Questionnaire so as to
obtain their free and frank opinion as also to protect their privacy. The format of the
Questionnaire is attached as Annexure I to this report.

Secondary Data. As Secondary Data is data which has been collected earlier for
other purposes, the requirement of this type of data with respect to this report was
obtained from the company website.

Sample Size and Method of Sampling. The details are as follows:

(a) Universe. The Universe for the purpose of this report was finite i.e., LIC.

(b) The Sampling Unit was an individual employed by LIC Jabalpur and the Sample
Size was limited to a total of 60 personnel of the Company.

(c) Method of Sampling adopted was Simple Random Sampling Method because all
employees have relatively different levels of satisfaction, thus a sample size of 60 was
considered to be adequate.

(d) Tools Used.

(i) Percentage Analysis.

(ii) Bar Diagram.

(iii) Pie Chart.

 DATA ANALYSIS & INTERPRETATION
Q-1 Are you clear about the results expected of you in your job?

Response Nos Percentage

Yes 56 93.3

No 4 6.7

Can’t say 0 0

Total 60 100

100.00% 93.33%
90.00%
80.00%
70.00%
60.00%
50.00%
Unnamed Series 1
40.00%
30.00%
20.00%
10.00% 6.67%
0.00%
0.00%
Yes No Can’t say

Interpretation.

Employees of the company are aware of the management’s expectations from them.

Q-2 Are you clear about the overall goals of the company?
 Response Nos Percentage

Yes 27 90

No 3 10

Can’t say 0 0

Total 30 100

Percentage
100.00%
90.00%
90.00%
80.00%
70.00%
60.00%
Percentage
50.00%
40.00%
30.00%
20.00%
10.00%
10.00%
0.00%
0.00%
Yes No Can’t say

Interpretation.

Employees of the company are quite clear of the goals of the organization
Q-3 Are you satisfied with your job assignment?

Response Nos Percentage

Yes 19 63.33

No 5 16.67

Can’t say 6 20

Total 30 100

Percentage
70.00%
63.33%
60.00%

50.00%

40.00% Percentage

30.00%
20.00%
20.00% 16.67%

10.00%

0.00%
Yes No Can’t say

Interpretation.

While a large proportion of the employees are happy and satisfied with their work
assignment, a fairly large proportion do not appear to be happy and satisfied.
Q-4 Does your job make use of your skills and abilities?

Response Nos Percentage

Yes 42 70

No 6 10

Can’t say 12 20

Total 60 100

Percentage
80.00%
70.00%
70.00%

60.00%

50.00%
Percentage
40.00%

30.00%
20.00%
20.00%
10.00%
10.00%

0.00%
Yes No Can’t say

Interpretation.

Skills and abilities of employees are being utilised by the company. However these skills
and abilities are not being optimally utilised.
Q-5 Do you get a sense of accomplishment from your work?

Response Nos Percentage

Yes 34 56.67

No 10 16.67

Can’t say 16 26.67

Total 60 100

Percentage
60.00% 56.67%

50.00%

40.00%

Percentage
30.00% 26.67%

20.00% 16.67%

10.00%

0.00%
Yes No Can’t say

Interpretation.

Higher order needs of a large number of employees needs more attention. Majority of
employees appear to be getting a sense of accomplishment in their respective jobs.

Q-6 Would you like to continue in your current area of work?

 Response Nos Percentage

Yes 52 86.67

No 4 6.67

Can’t say 4 6.67

Total 60 100

Percentage
100.00%

90.00% 86.67%

80.00%

70.00%

60.00%
Percentage
50.00%

40.00%

30.00%

20.00%

10.00% 6.67% 6.67%

0.00%
Yes No Can’t say

Interpretation.

Attitude of Employees towards their current job is reasonably satisfactory.

Q-7 Does your job, through variety and challenge, provide opportunities for learning
and growth?

Response Nos Percentage

Yes 36 60

No 8 13.33

Can’t say 16 26.67

Total 60 100

Percentage
70.00%
60.00%
60.00%

50.00%

40.00% Percentage

30.00% 26.67%

20.00%
13.33%
10.00%

0.00%
Yes No Can’t say

Interpretation.

More attention needs to be given to individual growth of employees of the company. A

fair proportion of the respondents seemed to be unsure of learning and growth
prospects in the company.
Q-8 Is the environment of your workplace safe clean, healthy and hygienic?

Response Nos Percentage

Yes 56 93.33

No 0 0

Can’t say 4 6.67

Total 60 100

Percentage
100.00%
93.33%
90.00%

80.00%

70.00%

60.00%
Percentage
50.00%

40.00%

30.00%

20.00%

10.00% 6.67%
0.00%
0.00%
Yes No Can’t say

Interpretation.

The environment at the work place is neat, clean, tidy and hygienic.
Q-9 Does your job leave you with sufficient time for your personal/family and social
life?

Response No Percentage

Yes 58 97

No 2 0

Can’t say 0 3

Total 60 100

Percentage
120.00%

100.00% 96.67%

80.00%

Percentage
60.00%

40.00%

20.00%

3.33%
0.00%
0.00%
Yes No Can’t say

Interpretation.

Majority of employees are satisfied with availability of personal time, however, a fair
proportion is not satisfied with the same.
Q-10 Are your superiors fair and equitable in their dealings with people?

Response No Percentage

Yes 54 90

No 4 6.66

Can’t say 2 3.33

Total 60 100

Percentage
100.00%
90.00%
90.00%

80.00%

70.00%

60.00%
Percentage
50.00%

40.00%

30.00%

20.00%

10.00% 6.67%
3.33%
0.00%
Yes No Can’t say

Interpretation.

Reveals, healthy inter personal relations between management and employees of the
company.
 Observations
The findings consequent to the study are as enumerated in succeeding paragraphs.

 Majority(90%) of the agents were clear about their own role and the company
goals.
 Only 63 percent of the agents were satisfied with their job assignments.
 Only 70 percent of the agents feel that the company is utilising their skills and
abilities.
 87 percent of the agents want to continue in their current area of work.
 60 percent of agents felt that their job provided opportunities for learning and
growth.
 93 percent of agents felt that environment of your workplace safe clean, healthy
and hygienic.
 97 percent of agents felt adequate private time for self and family was available.
 90 percent of agents were of the opinion that their employees were fair and
equitable in their dealings with people.
 Only 63 percent of agents thought that credit for work well done was given timely.
 67 percent of employees were satisfied with their remuneration package
considering their job and responsibilities.
 67 percent of agents were satisfied with freedom for free and frank
communication with superiors.
Suggestions
In general, level of agents satisfaction in the company is quite high. However as far as
satisfaction goes, sky is the limit and there is no end to expectations. Following
suggestions are made with the intention of further improvement:-

(a) System of reward and recognition may be improved. Though there is no bias in
rewards, employees have a feeling that their good work is not given credit in time.

(b) Remuneration to employees may be improved, if feasible.

(c) Communication (free and frank exchange between employees and employers)
may be given more attention.

(d) Opportunities for personal learning, growth and personal development of the
employees deserves due attention. Investment in employees is indirectly investment in
the company.

(e) Job assignment needs to be reviewed periodically in order to avoid monotony

and boredom.
 CONCLUSION
Project has given me an opportunity to interact with the Corporate Sector and to actually
see how HR department is doing in LIC. In fact it was very heartening to experience that
all concepts and theories mentioned in various books are actually implemented by the
Company albeit under a different name to suit its needs/style/culture.

Also, undertaking this project has helped me in learning to think of a topic/subject/issue

in a logical manner and examining the issue in its totality. This has also promoted
interaction with people from different walks of life, experiences and outlooks thus giving
me a broader perspective to the issue of training in particular and the business
environment in general.

Finally to conclude, I would like to submit that while pursuing this project, I learnt that it
is very important to learn the background/genesis of the topic/subject/issues first, so as
to understand the requirement/problem at hand and then consider its present status and
future prospects so as to arrive at a suggested set of
solutions/recommendations/suggestions so vital to the purpose of such studies.
 Annexure
QUESTIONNAIRE

Q-1 Are you clear about the results expected of you in your job?

a. Yes.

b. No.

c. Can’t say.

Q-2 Are you clear about the overall goals of the company?

a. Yes.

b. No.

c. Can’t say.

Q-3 Are you satisfied with your job assignment?

a. Yes.

b. No.

c. Can’t say.

Q-4 Does your job make use of your skills and abilities?

a. Yes.

b. No.

c. Can’t say.

Q-5 Do you get a sense of accomplishment from your work?

 a. Yes.

b. No.

c. Can’t say.

Q-6 Would you like to continue in your current area of work?

a. Yes.

b. No.

c. Can’t say.

Q-7 Does your job, through variety and challenge, provide opportunities for learning
and growth?

a. Yes.

b. No.

c. Can’t say.

Q-8 Is the environment of your workplace safe clean, healthy and hygienic?

a. Yes.

b. No.

c. Can’t say.

Q-9 Does your job leave you with sufficient time for your personal/family and social
life?

a. Yes.

b. No.

c. Can’t say.
Q-10 Are your superiors fair and equitable in their dealings with people?

a. Yes.

b. No.

c. Can’t say.