The Performance Evalution and Management Process

8/7/2019 The Performance Evalution and Management Process

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1. Introduction of The Insurance Industry

Overview

The story of insurance is probably as old as the story of mankind. The sameinstinct that prompts modern businessmen today to secure themselves against lossand disaster existed in primitive men also. They too sought to avert the evilconsequences of fire and flood and loss of life and were willing to make some sortof sacrifice in order to achieve security. Though the concept of insurance is largelya development of the recent past, particularly after the industrial era past fewcenturies yet its beginnings date back almost 6000 years.

The first two decades of the twentieth century saw lot of growth in insurancebusiness. From 44 companies with total business-in-force as Rs.22.44 crore, it roseto 176 companies with total business-in-force as Rs.298 crore in 1938. TheInsurance Act 1938 was the first legislation governing not only life insurance butalso 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 Indiansoil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurancecompany 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 tocollect statistical information about both life and non-life insurance businesses.

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

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

The General insurance business in India, on the other hand, can trace its roots tothe Triton Insurance Company Ltd., the first general insurance companyestablished 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 allclasses of general insurance business.

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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 minimumsolvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised thegeneral insurance business in India with effect from 1st January 1973.

With largest number of life insurance policies in force in the world, Insurancehappens to be a mega opportunity in India. Its a business growing at the rate of15-20 per cent annually and presently is of the order of Rs 450 billion. Togetherwith banking services, it adds about 7 per cent to the countrys GDP. Gross

premium collection is nearly 2 per cent of GDP and funds available with LIC forinvestments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while

health insurance and non-life insurance continues to be below internationalstandards. And this part of the population is also subject to weak social securityand pension systems with hardly any old age income security. This itself is anindicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economicdevelopment as it provides long term funds for infrastructure development and atthe same time strengthens the risk taking ability. It is estimated that over the nextten years India would require investments of the order of one trillion US dollar.The Insurance sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country.India has come a full circle from being an open competitive market tonationalization and back to a liberalized market again. Tracing the developments inthe Indian insurance sector reveals the 360 degree turn witnessed over a period ofalmost two centuries.

Present Scenario

The Government of India liberalized the insurance sector in March 2000 with thepassage of the Insurance Regulatory and Development Authority (IRDA) Bill,lifting all entry restrictions for 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 ofinsurance in India and this may also include restructuring and revitalizing of the

public sector companies. In the private sector 14 life insurance and 8 generalinsurance companies have been registered. A host of private Insurance companiesoperating in both life and non-life segments have started selling their insurance

policies..

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Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was onlytapped by the state owned LIC till the entry of private insurers. The penetration oflife 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 aproduct giving protection. Most customers were under- insured with no flexibilityor transparency in the products. With the entry of the private insurers the rules ofthe game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9percent of the market in terms of premium income. The new business premiums ofthe 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.Innovative products, smart marketing and aggressive distribution. That's the triplewhammy combination that has enabled fledgling private insurance companies tosign 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 theprivate sector and snapping up the new innovative products on offer.

The private insurers also seem to be scoring big in other ways- they are persuadingpeople to take out bigger policies. Buoyed by their quicker than expected success,nearly all private insurers 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

Max New York Life Insurance Company Limited

SBI Cardiff 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

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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:

1. 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.

2. 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.

3. 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.

4. 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 thepolicyholders in connection with services provided by them under theinsurance contract

COMPANY PROFILE

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse and Prudential plc, a leading international financialservices group headquartered in the United Kingdom.

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ICICI was established in 1955 to lend money for industrial development. Today, ithas diversified into retail banking and is the largest private bank in the country.Prudential plc was established in 1848 and is presently the largest life insurancecompany in UK.

ICICI Prudential is currently the No. 1 private life insurer in the country. For thefinancial 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 nearly615,000 policies.

The Company recognizes that the driving force for gaining sustainable competitiveadvantage in this business is superior customer experience and investment behindthe brand. The Company aims to achieve this by striving to provide world classservice levels through constant innovation in products, distribution channels andtechnology based delivery. The Company has already taken significant steps to

achieve this goal.

India's Number One private life insurer, ICICI Prudential Life Insurance Companyis a joint venture between ICICI Bank-one of India's foremost financial servicescompanies-and Prudential plc- a leading international financial services groupheadquartered 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 InsurerFinancial 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 TrustedBrands'. As we grow our distribution, product range and customer base, wecontinue to tirelessly uphold our commitment to deliver world-class financialsolutions to customers all over India.

FACT SHEET

THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, apremier financial powerhouse, and Prudential plc, a leading international financialservices group headquartered in the United Kingdom. ICICI Prudential wasamongst the first private sector insurance companies to begin operations inDecember 2000 after receiving approval from Insurance Regulatory DevelopmentAuthority (IRDA).

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank andPrudential plc holding 74% and 26% stake respectively. For the first quarter ended

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June 30, 2007, the company garnered Rs. 987 crore of weighted retail + group newbusiness premiums and wrote over 450,000 retail policies in the period. Thecompany 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 tomeet 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. 1private life insurer in the country, with a wide range of flexible products that meetthe needs of the Indian customer at every step in life.

Distribution

ICICI Prudential has one of the largest distribution networks amongst private lifeinsurers in India. It has a strong presence across India with over 680 branches andover 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, IdukkiDistrict Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao VithalCo-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 UrbanCooperative Bank LimitedDISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private lifeinsurers 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 toTrivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements withICICI 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. Ithas 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 advisorsto interface with and advise customers. Further, it leverages its state-of-the-art ITinfrastructure to provide superior quality of service to customers

RegisteredOffice :

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ICICI Towers 9thfloor, Bandra-Kurla ComplexMumbai - 400 051.Tel: 494 3232

Regional Office :

8th floor EROS Coorporate Tower,Nehru place,

New Delhi-110011.Tel:46554405

Delhi office :

3rd floorVideocon TowersE-1, Rani Jhansi Road

New Delhi - 110055. Tel: 601 3232

Products Insurance Solutions For Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centricproducts that meet the needs of customers at every life stage. Its products can beenhanced with up to 4 riders, to create a customized solution for each policyholder.

Savings Solutions

SavenProtect is a traditional endowment savings plan that offers lifeprotection along with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestoneexpenses like a childs marriage, expenses for a childs higher education or

purchase of an asset.

LifeTimeSuper offer customers the flexibility and control to customize thepolicy to meet the changing needs at different life stages. Each offer 4 fundoptions Preserver, Protector, Balancer and Maximiser.

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LifeLink Super is a single premium Unit Linked Insurance Plan whichcombines life insurance cover with the opportunity to stay invested in thestock market.

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

life insurance cover till the age of 75. InvestShield Life New is a unit linked plan that provides premium guarantee

on the invested premiums and ensures that the customer receives only thebenefits of fund appreciation without any of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premiumguarantee on the invested premiums along with flexible liquidity options.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It isavailable in 3 options level term assurance, level term assurance with

return of premium and single premium.

HomeAssure is a mortgage reducing term assurance plan designedspecifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans

SmartKid education plans provide guaranteed educational benefits to achild along with life insurance cover for the parent who purchases the

policy. The policy is designed to provide money at important milestones inthe 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 providesguaranteed educational benefits to a child along with life insurancecover for the parent who purchases the policy. The policy is designed toprovide money at important milestones in the child's life. SmartKidplans are also available in unit-linked form - both single premium andregular premium

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.

Market-linked retirement products

LifeTime Super Pension is a regular premium market-linked pension plan.

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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.

Choice of Six Investment Options :-

ICICI prudential offers you the opportunity of selecting between investmentoptions to match your investment priorities.

1) Protector:- An Investment Option with investment indebt and money market

instruments.2) Maximiser :- An investment option with investment in equity and equity

related instruments.

3) Balancer: - An investment option with investment in a mix of equity and debtoriented instruments.

4) Preserver: - An investment option with investment in low-risk instruments likecash and call money markets.

5) Flexi Growth: - New Fund (NFO) launched in March 2007, Long term returnsfrom an equity portfolio lare, mid and small cap companies.

6) Flexi balanced:- Balance of capital appreciation and stable returns from anequity (large, mid & small cap companies) & debt portfolio.

.

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Businesses at Various Growth Phase

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Car Finance

InvestmentBanking

DistributionandBrokerage

Commercial

Vehicles,Retail LoansCorp Finance

Mutual FundInternationalOperations

AssetReconstruction

Pvt. EquityLifeInsurance

AssetFinan

ce

KnowledgeSkills

Wealth

Mgmt

LeaderSunriseStable/growth

Global footprint-

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ASSETS UNDER MANAGEMENT


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The journey so far

In October 2005, ICICI Group acquired the 40% stake in ICICI Prime held by

Ford Credit International (FCI) and FCI acquired the stake in Ford Credit

ICICI PRUDENTIAL (FCKM) held by ICICI Group.

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US- 57%

EUROPE- 22%

-

OTHERS- 3%


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In May 2006, ICICI Group bought 25% stake held by Goldman Sachs in ICICI

Capital and ICICI Securities.

Key group companies and their businesses

ICICI PRUDENTIAL Bank The ICICI PRUDENTIAL Group's flagship

company, ICICI PRUDENTIAL Finance Ltd which was established in 1985, was

converted into a bank- ICICI PRUDENTIAL Bank Ltd in March 2003 becoming

the first Indian company to convert into a Bank. Its banking operations offer a

central platform for customer relationships across the group's various businesses.

The bank has presence in Commercial Vehicles, Retail Finance, Corporate

Banking, Treasury and Housing Finance.

ICICI PRUDENTIAL Capital Company ICICI PRUDENTIAL Capital

Company Limited (KMCC) is India's premier Investment Bank. KMCC's core

business areas include Equity Issuances, Mergers & Acquisitions, Structured

Finance and Advisory Services.

ICICI Securities ICICI Securities Ltd. is one of India's largest brokerage and

securities distribution houses. Over the years, ICICI Securities has been one of the

leading investment broking houses catering to the needs of both institutional and

non-institutional investor categories with presence all over the country through

franchisees and coordinators. ICICI Securities Ltd. offers online (through

www.ICICI securities.com) and offline services based on well-researched expertise

and financial products to non-institutional investors.

ICICI PRUDENTIAL Prime ICICI PRUDENTIAL Prime Limited (KMP)

(formerly known as ICICI PRUDENTIAL Primus Limited) has been formed with

the objective of financing the retail and wholesale trade of passenger and multi

utility vehicles in India. KMP offers customers retail finance for both new as well

as used cars and wholesale finance to dealers in the automobile trade.

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http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/


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ICICI PRUDENTIAL Asset Management Company ICICI PRUDENTIAL

Asset Management Company ICICI PRUDENTIAL Asset Management Company

(KMAMC), a subsidiary of ICICI PRUDENTIAL Bank, is the asset manager for

ICICI PRUDENTIAL Mutual Fund (KMMF). KMMF manages funds in excess ofRs 16,100 crore and offers schemes catering to investors with varying risk-return

profiles.

ICICI PRUDENTIAL Old Mutual Life Insurance Limited ICICI

PRUDENTIAL Old Mutual Life Insurance Limited is a joint venture between

ICICI PRUDENTIAL Bank Ltd. and Old Mutual plc. ICICI Life Insurance helps

customers to take important financial decisions at every stage in life by offering

them a wide range of innovative life insurance products, to make them financially

independent. ICICI group was founded by Mr. Uday ICICI in Gujarat, He started

his business with the Trade finance and Old mutual plc was a south Africa based

insurance company. After the Joint venture ICICI PRUDENTIAL old mutual life

insurance limited come in insurance sector and become the first NBFC (NON

BANKING FINANCIAL CORPORATION) to convert into a Bank.

Department With In The Company-

Customer Service & Operations

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The Operations department oils the work processes between the customer and the

company to ensure consistent and quality service to the customer. To streamline

the operations, the Operations department interfaces between the clients and the

agents, the branches and the underwriters, and manages work processes.

IT

The Information Technology function at ICICI life insurance is committed to

enable business through the use of technology. It is segmented into 4 groups to

enable highest levels of delivery to the customers: The Solutions Group- Web that

provides real-time information to customers and is responsible for customer

relationship management, IT Architecture & Corporate Solutions Group is incharge of developing and maintaining a blueprint for the IT architecture for the

enterprise as a whole. This team works as an in house R&D Solution Group,

exploring new technological initiatives and also caters to information needs of

corporate functions in the organization. IT Infrastructure group is responsible for

providing hardware, software, network services to the whole organization.

Marketing

The Marketing function at ICICI life insurance covers an array of activities - brand

and media management, channel support, direct marketing and corporate

communications. The Brand and Communications team is in charge of advertising,

consumer research, media planning & buying and Public Relations; that helps

develop and nurture ICICI life insurance identity while effectively communicating

its varied product offerings to the customer. Channel marketing provides support to

the sales force by streamlining the design and development of collaterals and sales

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tools across distribution channels. The Direct marketing team was set up to

generate high quality leads for profitable business. .

Finance

Finance function in ICICI life insurance is committed to create an infrastructure

that is aligned to shareholder expectations. Finance basically comprises of four

functions. . Corporate Planning and MIS provide feedback on business strategies.

This includes driving the budgeting process, providing strategic inputs for

decision-making and management reporting and analysis. The Accounts functionincludes preparation and maintenance of financial records, funds management, and

expense processing and treasury operations. Compliance ensures that every action

is within the regulatory framework. This includes reviewing compliance

requirements and supporting the ethical framework of ICICI life insurance. Internal

audit provides assurance to the management over the organizations' control

framework and includes process risk management, information security assessment

and business continuity assessment

HR

The people strategy of ICICI life insurance is "To build a committed team with a

culture of innovation, learning and growth. The Human Resource Function at

ICICI life insurance drives the people strategy of the business. With its initial focus

on operational excellence to deliver benefits and services to staff members, HR is

now committed to building capability through state of the art processes. A robust

performance management system, compensation system and a segmented training

architecture enable it to deliver value to the organization.

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Competitors

Licenses have been issued for the following companies

ICICI PRUDENTIAL Old Mutual 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

Max New York Life Insurance Company Limited

SBI Cardiff 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

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INTRODUCTION TO THE PROJECT TOPIC

Performanc e Evaluation

Performance evaluations, which provide employers with an opportunity to assess

their employees' contributions to the organization, are essential to developing a

powerful work team. Yet in some practices, physicians and practice managers put

performance evaluations on the back burner, often because of the time involved

and the difficulties of critiquing employees with whom they work closely. The

benefits of performance evaluations outweigh these challenges, though. When

done as part of a performance evaluation system that includes a standard

evaluation form, standard performance measures, guidelines for delivering

feedback, and disciplinary procedures, performance evaluations can enforce the

acceptable boundaries of performance, promote staff recognition and effective

communication and motivate individuals to do their best for themselves and the

practice.

Objectives Of The Performance Evaluation

Data relating to performance assessment of employees arc recorded, stored. and

used for seven purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance.

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2. To confirm the services of probationary employees upon their completing the

probationary period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular payscales have not been fixed.

5. To let the employees know where they stand insofar as their performance is

concerned and to assist them with constructive criticism and guidance for the

purpose of their development.

6. To improve communication. Performance appraisal provides a format for

dialogue between the superior and the subordinate, and improves understanding of

personal goals and concerns. This can also have the effect of increasing the trust

between the rater and the ratee.

7. Finally, performance appraisal can be used to determine whether HR programs

such a selection, training, and transfers have been effective or not.

Broadly, performance appraisal serves four objectives-Developmental uses,

Administrative uses/decisions,

Organizational maintenance/objectives, and

Documentation purposes

Multiple Purposes of Performance Assessment

General Applications Specific Purpose

Developmental Uses Identification of individual needs

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Administrative Uses/Decisions

Performance feedback

Determining transfers and job assignments

Identification of individual strengths ad

development needsSalary

Promotion

Retention or termination

Recognition of individual performance

Lay-offs

Identification of poor performers

Bottom of Form

The primary goals of a performance evaluation system are to provide an equitable

measurement of an employee's contribution to the workforce, produce accurate

appraisal documentation to protect both the employee and employer, and obtain a

high level of quality and quantity in the work produced. To create a performance

evaluation system in practice, these five steps should be considered:

1. Develop an evaluation form.

2. Identify performance measures.

3. Set guidelines for feedback.

4. Create disciplinary and termination procedures.

5. Set an evaluation schedule.

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1. Develop an evaluation form.

Performance evaluations should be conducted fairly, consistently and objectively

to protect employees' interests and to protect practice from legal liability. One

way to ensure consistency is to use a standard evaluation form for each evaluation.

The form use should focus only on the essential job performance areas. Limiting

these areas of focus makes the assessment more meaningful and relevant and the

employee to address the issues that matter most. ..

2. Identify performance measures.

Standard performance measures, which allow to evaluate an employee's job

performance objectively, can cut down on the amount of time and stress involved

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KEY POINTS

A performance evaluation system can motivate staff to do their best for

themselves and the practice by promoting staff recognition and improving

communication.

Evaluations should be conducted fairly, consistently and objectively to protect

your employees and your practice.

An effective performance evaluation system has standardized evaluation

forms, performance measures, feedback guidelines and disciplinary

procedures.


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in filling out the evaluation form. Although developing these measures can be one

of the more time-consuming parts of creating a performance evaluation system, it's

also one of the most powerful.

3. Set guidelines for feedback.

Feedback is what performance evaluations are all about. So before implement

performance evaluation system, make sure that everyone who will be conducting

evaluations knows what kind of feedback to give, how to give it and how to get it

from the employee in return.. .

4. Create disciplinary and termination procedures.

In some cases, even after a thorough performance evaluation and a discussion of

expected improvements, an employee will continue to perform poorly. We need to

be prepared to handle such a situation by having well-defined, written disciplinary

and termination procedures in place. These procedures should outline the actions

that will be taken when performance deteriorates - a verbal warning, a written

warning.

5. Set an evaluation schedule.

Once built performance evaluation system - the evaluation form, the performance

measures, the feedback guidelines and the disciplinary procedures - just need to

decide when to conduct the performance evaluations. Some practices do all

employee evaluations at the same time of year, while others conduct them within

30 days of each employee's anniversary of employment (the latter may work better

since it spreads the work of the evaluations out for employer and employee).

The last analysis

A performance evaluation system should be a key component of practice structure.

When implemented effectively, it ensures fairness and accountability, promotes

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Strategy andBehavior

Making correctdecisionsCompetitiveAdvantage

Minimizingdissatisfaction and

turnover

Ensuring LegalCompliance

Values andBehaviour

growth and development and encourages a sense of pride in your employees'

contributions to the practice.

Performance Evaluation And Competitive Advantage

The objectives of performance appraisal, listed above, point out the purpose which

such an exercise seeks to meet. What needs emphasis is that performance

evaluation contributes to firm's competitive strength. Besides encouraging high

levels of performance, the evaluation system helps identify employees with

potential, reward performance equitably and determine employee's need for

training. Specifically, performance appraisal helps an organization gain

competitive edge in the following ways (see Fig below)

Fig: How Performance Evaluation can contribute to Firm's Competitive

Advantage?

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ImprovingPerformance


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Improving Performance

An effective appraisal system can contribute to competitive advantage by

improving employee job performance in two ways-by directing employee

behaviour towards organizational goals, as was done by the second beekeeper (seeopening case), and by monitoring that behaviour to ensure that the goals are met.

Making Correct Decisions

As stated above, appraisal is a critical input in making decisions on such issues as

pay raise, promotion, transfer, training, discharges and completion of probationary

periods. Right decision on each of these can contribute to competitive strength of

an organization. If promotion, for example, is made on performance, the promote

feels motivated to enhance his or her performance.

Ensuring Legal Compliance

Promotions made on factors other than performance might land up a firm in a legal

battle, thus diverting its focus on non-productive areas, as it happened to

Williamson Magar. Organizations can minimize costly performance-relatedlitigation by using appraisal systems that give fair and accurate ratings.

Minimizing Job Dissatisfaction and Turnover

Employees tend to become emotional and frustrated if they perceive that the

ratings they get are unfair and inaccurate. Such employees find that the efforts they

had put in became futile and obviously get de-motivated.

Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is

increased turnover. Fair and accurate appraisal results in high motivation and

increased job satisfaction. An organization having satisfied and motivated

employees will have an edge over its competitiveness

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Organizational Strategy and Performance Evaluation

The performance evaluation system serves many organizational objectives and

goals. Besides encouraging high level of performance, the evaluation system isuseful in identifying employees with potential, rewarding performance equitably

and determining employees' needs for development. These are all the activities that

should support the organizations strategic orientation. Although these activities

are clearly instrumental in achieving corporate plans and long-term growth, typical

appraisal systems in most organizations have been focused on short-term goals.

From the strategic management point of view, organizations can be grouped into

three categories defenders, prospectors and analyzers. Performance appraisal has

definite roles in all the three strategies.

Typically, defenders have a narrow and relatively stable product-market domain.

Because of this narrow focus, these organizations seldom need to make major

adjustments in their technology Structure or methods of operations. They devote

primary attention to improving the efficiency of their existing operations.

successful defenders use performance appraisal for identifying training needs.Organizations with a prospector strategy continuously search for different product

and market opportunities. In addition, these organizations regularly experiment

with potential responses to new and emerging environmental trends. Prospectors

are often the harbingers of change. Because of the emphasis on skills identification

and acquisition of human resources from external sources, as opposed to skills

building with the organization, prospectors often use the performance appraisal as

a means of identifying staffing needs. The emphasis is on results. Finally, the focus

is on division and corporate performance evaluation as they compare with other

companies during the same evaluation period.

Organizations with an analyzer strategy operate in two types of product-.market

domains. One domain is stable while the other is changing. In their more

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innovative areas, managers watch their competitors closely and rapidly adopt the

ideas that appear promising. In general, analyzers use cost effective technologies

for stable products and project or matrix technologies for new product. Analyzers

tend to emphasize both skill building and skill i1cquisilion and employ extensivetraining programs.

Thus, these organizations attempt to identify both training as well as staffing

needs. The appraisal systems are considered at the individual, group and divisional

levels. Finally, successful analyzers have a tendency to examine current

performance with past performance within the organization. Cross-sectional

comparisons (comparisons among 'companies) may also occur.

Evaluation Process

Figure below outlines the performance- appraisal process. Each step in the process

is crucial and is arranged logically. The process as shown in Fig. Below is

somewhat idea1ised. Many organizations make every effort to approximate the

ideal process, resulting in first-rate appraisal systems. Unfortunately, many othersfail to consider one or more of the steps and, therefore, have less-effective

appraisal system.

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28

Establish performanceStandardCommunicateexpectationMeasuring actualperformance

Comparison to actual& standardperformance

Discussion of appraisalwith employeesInitiate corrective action


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Some Important Methods Of Performance Evaluation:-

Behavioral Anchored Rating Scale

Forced choice distribution

Checklist

Ranking Method

Paired-comparison Method

Grading & Rating

Performance Management

Performance management system (PMS) is the heart of any " people management "

process in organization. Organizations exist to perform. If people do not perform

organizations don't survive. If people perform at their peak level organization can

compete and create waves.

Performance management systems if properly designed and implemented can

change the course of growth and pace of impact of organizations. In the past

organizations as well as the HR function have wasted a lot of time by wrongly

focusing on performance appraisals rather than performance management.

Objective

The objectives of Performance Management are to:

1. Increase two-way communication between supervisors and employees

2. Clarify mission, goals, responsibilities, priorities and expectations

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3. Identify and resolve performance problems

4. Recognize quality performance

5. Provide a basis for administrative decisions such as promotions, succession

and strategic planning, and pay for performance.

Principle Of Developing Performance Management Plan

Development of a performance management plan should be consistent with the

following principles:

1. Performance management is considered a process, not an event. It follows

good management practice in which continualcoaching, feedback and

communication are integral to success.

2. The Performance Management Plan is primarily a communication tool to

ensure mutual understanding of work responsibilities, priorities and

performance expectations.

3. Elements for discussion and evaluation should bejob specific not

generalized personality traits. The major duties and responsibilities of the

specific job should be defined and communicated as the first step in the

process.

4. Performance standards for each major duty/ responsibility should be

defined and communicated.

5. Employee involvement is encouraged in identifying major duties and

defining performance standards.

6. Professional development should be an important component of the plan.

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7. The formal evaluation period should be long enough to allow for full

performance and to establish a history such that evaluations are fair and

meaningful. One year is a common evaluation period.

8. Documentation of performance will occur as often as needed to record the

continuum of dialogue between supervisor and employee.

9. If formal ratings are included, they should reflect the incumbent's actual

performance in relation to the performance standard for that major duty.

10.The supervisor should be evaluated on the successful administration of the

plan and ongoing performance management responsibilities.

Process Of Performance Management

Employee performance management includes:

planning work and setting expectations,

continually monitoring performance,

developing the capacity to perform,

periodically rating performance in a

summary fashion, and

rewarding good performance.

.

In an effective organization, work is planned out in advance.

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Planning means setting performance expectations and goals for

groups and individuals to channel their efforts toward achieving

organizational objectives. Getting employees involved in the

planning process will help them understand the goals of the

organization, what needs to be done, why it needs to be done, and

how well it should be done.

In an effective organization, assignments and projects are monitored

continually. Monitoring well means consistently measuringperformance and providing ongoing feedback to employees and

work groups on their progress toward reaching their goals.

In an effective organization, employee developmental needs are

evaluated and addressed. Developing in this instance means

increasing the capacity to perform through training, giving

assignments that introduce new skills or higher levels of

responsibility, improving work processes, or other methods.

Providing employees with training and developmental opportunities

encourages good performance, strengthens job-related skills and

competencies, and helps employees keep up with changes in the

workplace, such as the introduction of new technology.

From time to time, organizations find it useful to summarize

employee performance. This can be helpful for looking at and

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comparing performance over time or among various employees.

Organizations need to know who their best performers are.

In an effective organization, rewards are used well. Rewarding

means recognizing employees, individually and as members of

groups, for their performance and acknowledging their contributions

to the agency's mission. A basic principle of effective management

is that all behavior is controlled by its consequences. Those

consequences can and should be both formal and informal and both

positive and negative.

Managing Performance Effectively. In effective organizations,managers and employees have been practicing good performance

management naturally all their lives, executing each key component

process well. Goals are set and work is planned routinely. Progress

toward those goals is measured and employees get feedback. High

standards are set, but care is also taken to develop the skills needed

to reach them. Formal and informal rewards are used to recognize

the behavior and results that accomplish the mission. All five

component processes working together and supporting each other

achieve natural, effective performance management.

Performance Management System

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Introduction

The human resource is the organization's most valuable asset. They define theefficiency, effectiveness and over-all quality of service in any industry. It isimportant for any organization to establish an effective system that accurately

evaluates the performance of workers for the purpose of determining tenure,transfers or promotions, and appropriate incentives.

While policies and systems for employee performance evaluation have long beenin place in the government, there has been an increasing demand to review theexisting system, i.e. demand for public servants to produce tangible results by"making a difference" instead of "just keeping busy," demand for increasedaccountability by performing the mandate of the organization, the need to correctthe notion that a permanent appointment guarantees security of tenure. Hence, thecall for the Civil Service Commission (CSC), as the central personnel agency ofthe government, to revisit and, as necessary, re-invent the performance

management system of the bureaucracy.

The development of the performance management system for the civil service wasinitiated by a re-assessment of the existing Performance Evaluation System (PES).This resulted to the Performance Management System - Office PerformanceEvaluation System (PMS-OPES)-a new strategy that will establish a culture of

performance and accountability in the bureaucracy.

Through the PMS-OPES, the CSC aims to establish a high-performance culture byaligning individual objectives to the organizational objectives. The new

performance management system would meaningfully and objectively link

employees performance vis--vis an agency's Organizational Vision, Mission, andStrategic Goals by using a technology composed of various strategies, methods,and tools for ensuring fulfillment of the functions of the offices and its personnelas well as for assessing the quality, quantity, and timeliness of theaccomplishments. It is a systematic process for improving organizational

performance by developing the performance of individuals and teams. It is a meansof getting better results from the organization, teams and individuals byunderstanding and managing performance within an agreed framework of plannedgoals, standards and competence requirements. Processes exist for establishingshared understanding about what is to be achieved, and for managing and

developing people in a way that increases the probability that it will be achieved inthe short and longer term.

The unique component of the PMS-OPES is the use of points system to measurethe collective performance of individuals within an operating unit. It simplifies the

performance evaluation/measurement process and also provides an objective anduser-friendly performance management system.

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The Performance Management System - Office Performance EvaluationSystem (PMS-OPES)

The PMS-OPES is a new way of managing performance in the civil service thatserves as an evaluation strategy for assessing office performance or the collective

performance of individuals within the smallest operating unit of an organization.By measuring office performance, it becomes easier to directly translate theagency's strategic direction into more specific and measurable objectives. It alsoserves as a standard-setting mechanism for better alignment of individualobjectives to agency objectives. Moreover, it enhances objectivity of individual

performance evaluations.

The following are the objectives of the PMS-OPES:

1. To align individual performance goals with the organization's strategicgoals/vision;

2. To ensure organizational effectiveness by cascading institutional accountabilities tothe various levels of the organization's hierarchy;

3. To have performance management linked to other HR systems; and

4. To link agency overall performance to the Organizational Performance IndicatorFramework, to the Agency Strategic Plan, and to the Medium-Term Philippine

Development Plan.

Environmental Performance Evaluation :

What islt?

The EMS standard requires organizations to develop measurable objectives andtargets, and to monitor and evaluate their performance against them. The EMSdoes not audit this performance but it does audit the management of performanceobjectives and target. SC4 is developirig a guideline to help organizations managetliis monitoring and evaluation process.

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The basic premise is that what gets measured gets done. Measurement allows anorganization to more clearly understand and quantify where it is and how far it hasto go to meet its objectives and targets. lt also provides a basis for understandingimprovement. The EPE then will provide the organization with a systematic toolfor generating information. A necessary element of generating useful information

is selecting or defining the environmental performance indicators (EPIS) orperformance measures that will be used.

EPE is different from environmental audits in several significant ways. EPE is anongoing process. As part of the management system it is something that is put in

place and available at all times. It helps to define actions, responsibilities andinformation flows that are part of ongoing, day-to-day operations, Anenvironmental audit ls a snapshot In time. It is a periodic verification thateverything is as it should be. As well, while the evidence collected during an auditis existing evidence, the information generated by an EPE is new evidence. While

within the framework of and EPE an organization can conduct research andinvestigate new issues, within an audit one can only assess claims concerning thecurrent state.

Since an EPE system provides the framework for information gathering it alsoprovides a logical link to reporting. Organizations will have many internal andexternal reporting requirements and EPE system can ensure that the information isgathered and disseminated correctly and on time. Manyorganizations also chooseto voluntarily report on their environmerital management system or environmental

performance. The systematic collection and generation of information provided bythe EPE system provides tremendous efficiencies of effort should an organization

decide to report voluntarily.

How It Works

The standard being developed by SC4 will allow organizations to developappropriate systems to measure, evaluate, describe and communicateenvironmental performance. lt is part of the environmental management systemand not separate from it. Thus ISO 14001, the EMS specification document,requires that an organization monitor and measure on a regular basis the keycharacteristics of its operations and activities. The developers of this standard,however, intend to develop a document that will be useful to an organization that

wishes to evaluate its environmental performance whether or not it has a formalenvironmental management system in place. If an organization without and EMSwishes to use the EPE system it must still have a mechanism for developingobjectives and targets since the EMS document and not the EPE document

provides this guidance.

The current draft of the EPE document contains the following elements:

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Planning EPE

Management corisiderationsSelecting indicators for the management areaSelecting indicators for the operational area

Selecting iridicators for the environmental areaEvaluating Environmental Performance

CollectingdataAnalyzing dataEvaluating informationInternal reporting and communicatingExternal reporting and communicating

Reviewing and improving EPE

Planning involves reviewing or identifying those environmental aspects of an

organizations activities products and services that have generated objectives andtargets. It is essential that the EPE process be integrated with the EMS since thedevelopment of objectives and targets should include identifying what anorganization wants to measure and therefore how it wants to measure it.

The selection or definition of environmental performance indicators is key at thisjuncture. There is much debate about the development or EPIS. Should there begeneric EPIs across sectors? Common EPIs would provide the basis forcomparison and benchmarking. They might also provide the basis for generation ofnational, regional or international environmental accounts. But is the development

of such generic EPIs possible given the diversity of business operations, localconditions and measurement capabilities? Should individual sectors develop theirown EPIS? If generic. EPIs are too difficult to develop should sector-based EPIs hedeveloped?

In 1992, SC4 set itself the goal of developing generic and sector specific EPIs butsoon abandoned it as too large a project. They also had to ask themselves if theywere the right group to develop sectoral EPIS. Perhaps ttie industry associations,which are able to bring together all of the experts in their area, should beencouraged to undertake this task. Sector efforts to date to do this have provendifficult. Organizations are wary of helping to create indicators tliat will allow

them to be too easily ranked for environmental performance against theircompetitors.

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PROJECT PROFILE

Title Of The Study

Title of the study is ANALYSING THE PERFORMANCE EVALUTION AND

MANAGEMENT IN OLD MUTUAL ICICI LIFE INSURANCE.

Objective Of The Study

The main objective of this study is to know the awareness, perception and

satisfaction level of employees regarding the Performance Management System,

and to evaluate and analyze the effectiveness of the system, i.e.

To study the Performance Management System (PMS) prevailing in the

organization.

To evaluate and analyze the working of the system.

To study the awareness of this system among the employees in order to

know how much they know about it, how much are they involved in it, their

commitment to the system, their perception about the system and whether

they are satisfied with it or not.

To study the effectiveness of this system in the organization.

To make suggestion.

Scope Of The Study

During the tenure of the project/summer training attempt is to understand the work

culture and processes involved in the HR Department of Old mutual ICICI life

insurance. Attempt would be to analyze, how the HR deals with aspect of people

management.

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In the latter part of the project a study would be conducted on the Performance

Evaluation and Management System, where a detail analysis is planned to

understand the methods, process and analysis of the evaluation and management

system

Significance Of The Study

This study is beneficial for both to the company and the researcher

To The Company

This project is advantageous to the company because-

Through this company can what are the faults in their performance

evaluation and management system and it can be able to remove those

faults.

Company can know satisfaction level of their employees.

Employees expectation from the company.

Employees performance

This report also help the company that where its system works successfullyand how it can be maintained

This project report suggests the company that what changes should be there

in the current performance and evaluation and management system to gain

the competitive advantage

To the Researcher

This project is necessary to the researcher

Being a management student it is necessary to gain the practical knowledge

about the corporate world and the market this project gives the practical

exposure to the researcher

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Through this project researcher knew how performance being evaluated by a

company and how manage it

This is also useful because this project generated new ideas in the researcher

that how a company maintained their performance evaluation andmanagement system so that it can be enough motivated to their employees to

their employees and also gain competitive advantage `

RESEARCH METHODLOGY

UNIVERSE

The first step in developing any sample design is to clearly define the set of

objects, technically called the universe. The population was finite.

A definite plan was drawn up for obtaining a sample from the employees of the

ICICI life insurance in KOTA.

Sampling Technique

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Research in common parlance refers to a search of knowledge. Research

methodology comprises defining and redefining problems formulating hypothesis

or suggested solution; collecting, organizing and evaluating data making deduction

and reaching conclusion and at last carefully testing the conclusions to determinewhether they fit the formulating hypothesis.

In it I study the various steps that are generally adopted by a researcher in his

research problem along with the logic behind them. It is necessary for the

researcher to know not only the research method but also the methodology.

Random sampling:-

This type of sampling also known as chance sampling or probability sampling

where each and every item in the population has as equal chance of inclusion in the

sample and each one of the possible sample has the same probability of being

selected.

Research Design:-

A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with

economy in procedure. Exploratory research design is used.

The research study was conducted in order to know the employees awareness and

perception level regarding the prevailing Performance Management System in

ICICI life insurance Ltd.

Tools Of Data Collection

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Since the study under taken by me is descriptive research, I have concentrated

on primary data through survey and collection secondary data.

On the basis of the following two sources, the research was carried out:-1. Primary Data

2. Secondary Data

1. Primary Data:-

a) Questionnaire Method: The main instrument for the collection of

primary data was the Questionnaire Method. The questionnaires were

prepared for sales managers which mainly contained questions on the

following dimensions:-

Awareness

Measures of Performance

Feedback

Perception

b) Informal discussion: Informal discussions were carried out with sales

managers across various levels in the organization to know the

prevailing system, awareness level and also to know their viewpoints

on PMS.

2. Secondary Data:-

Secondary data was collected by reviewing different literatures like articles,

magazines, journals, etc and also through different websites.

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Limitations Of The Study:

The researcher tried to make the research work as authentic as possible.However the following constrain still unavoidable:

All the results and conclusions have been drawn on the basis of the

information provided by the respondents not denied that there was

always a possibility of response error.

Some respondents were reluctant and were tend to filter the information

to the researcher.

The sample size taken may not prove adequate for conditions.

DATA ANLYSIS

What is your job profile in this company.

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40

31 1

5

0

5

10

15

20

25

30

35

40

45

sales manager asst. branch

manager

mktg manager training head operation

DESIGNATION

NOO

F

RESPON

DENTS

Seri

Seri

Interpretation

Sample size is taken 50 out of which 40 persons are Sales Manager, 3are the Asst.

Branch Manager, 1 is the Marketing Manager, 1 is the Training Head of Rajasthan

and the 5 persons are working in the Operation Department of the company

Satisfaction level from the job profile.

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Interpretation

During the survey I found that out of 50 employees 78% employees said that they

are satisfied with their job profile while the 22% said that they are not satisfied

with their job profile with in the company.

Satisfaction level from the facilities provided by the company

.

45

YES

78%

NO

22%

Y

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y e

9 4

n o

6 %

Interpretation

out of 50 employees 94% employees were satisfied the facilities provided by the

company to do their their work. On the other hand only 6%employees were not

satisfied by the facilities.

Achievements in current job profile

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20%

30%

40%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

grade salary rewards other

achievments

PERSENTAGE

Serie

Serie

Interpretation

Out of 50employees 20%said that they got achievements in grade, 30%in salary,

40%got many rewards while 10%said other achievements like L.A. counted in

manager.

Achievements satisfied organization need

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YES

100%

NO

0%

Interpretation

When the question were asked to the employees that their achievements satisfied

the organization need then the response was 100%. Everyone said that their

achievements fulfill the company needs.

Analysis the quality of the work

60%

10%

20%

10%

0

0.1

0.2

0.3

0.4

0.5

0.6

PERCENTAGE

considerably

surpassed

minimum

exceeded

minimum

requirements

met minimum

requirements

less than

minimum

requirements

c

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Interpretation

Out of 50 employees 60% said that they met the surpassed minimum requirements,

10%employees met the exceeded minimum requirements, 20%met minimum

requirements, 10% were not able to met the minimum requirements of thecompany.

Evaluate the performance in unsupervised condition

more

56%

less

33%

unsuccess

11%

more

less

unsucc

Interpretation

Out of 50 employees 56%employees said that their assignment became very

successful even when there were no guidelines of the company, 33% employees

got less success, 11%became unsuccessful.

Acquired skill to gain competitive advantage

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70%

3%

25%

2%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

PERCENTAGE

managerial technical communication other

Seri

Seri

Interpretation

Out of 50 employees 70% aquired the managerial skill from their current position,

while 3%technical, 25%communication, 2%said other skill like stress handling,

finance related knowledge.

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Measuring the creativeness in terms of showing initiative

65%

20%

10%

5%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

displayedconsiderable initiative

displayed someinitiative

displayed littleinitiative

displayed no initiati

PERCENTAGE

Interpretation

Out of 50 employees 65%employees displayed considerable initiative to achieve

their target while 20%displyed some initiative, 10%displayed little initiative,

5%displayed no initiative.

Checking the managerial skill in utilizing resources

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10% 10%

80%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

PERCENTAGE

through

motivation

through

contests and

schemes

through

incentives and

gifts

all the above

Seri

Seri

Seri

Interpretation

Managerial skill in utilizing resources on the following two bases

1. manpower

2. money

80% Managers said that they are utilizing their resources through incentives and

gifts, contests & schemes and through motivation while only 10%through

incentives and gifts, 10%through contests and schemes and no one using

motivation tool in utilizing resources

Performance evaluation criteria by the company

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1%

30%

69%

0%

10%

20%

30%

40%

50%

60%

70%

PERCENTAGE

on time on target on cost all

Seri

Interpretation

Out of 50 employees 69%said that they were evaluated by the company on the

basis of time, cost and on time, 30%on target, 1%on timely basis and no one were

evaluated on the cost basis.

Performance evaluation technique of the company

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0 74%

20%

6%

0 0.2 0.4 0.6 0

PERCENTAGE

grading & Rating

Raking

paired comparison

cost accounting

checklist

other method

METHODS

Interpretation

Every company have their techniques to review the performance of their

employees. In ICICI life insurance 74% employees said that their performance

review by Grading &Rating, 20% were by ranking, and 5%were by other method

like career express.

Performance improvement suggestions from the employees side to the

company

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promotion

28%

salary

22%training

17%

enviroment

11%

other

22%

promoti

salary

training

enviro

other

Interpretation

Every employee wants some changes so that he/she perform better. In this regard

ICICIs employees also gave some suggestion to improve their performance.

28%said that should be promoted, 22%said salary enhancement, 17%wants more

training programs, 11%wants changes in environment and 22%wants other like in

Infrastructure, all the above mentioned.

Employees relation with the company

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2% 2%

11%

85%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

unsatis

factor

y

unprod

uctiv

e

unco

operativ

e

satis

factory

prod

uctiv

e

coop

erativ

e

alld

ef

PERCENTA

GE

Seri

Seri

Interpretation

when the question was asked to the employees how they characterized their

relation with the company 2% said satisfactory, 2%unsatisfactory, 11%productive,

85% said that their relation with the company was satisfactory, cooperative and

productive.

Gender

male

90%

female

10%

ma

fe

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Interpretation

Sample size was taken 50 out of which 90%are the male employees, meanly

10%are the female employees.

Age group

0%

10%

20%

30%

40%

50%

60%

70%

80%

20-30 31-40 41-50 50-ABOVE

AGE

PERCENTAGE

Seri

Interpretation

Out of 50 employees 70%were under the 20-30 age, 25%were 31-40 age, 5% were

under 41-50.

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SWOT ANALYSIS

The internal and external situation analysis can produce a large amount of

information, much of which may not be highly relevant. The SWOT analysis can

serve as an interpretative filter to reduce the information to a manageable quantity

of key issues. The SWOT analysis classifies the internal aspects of the company as

strengths or weakness and the external situational factors as opportunities or

threats. ICICI Life Insurance also has many strength and weakness and opportunity

and threats.

Strengths: -Effective bank support in service: ICICI life insurance have full support in

service by ICICI bank which have branches across India.

Effective management team: ICICI management team is mixture of experience

for guidance and youth for successful implementation.

Varity in product and good service: ICICI have various plans for individual,

group and rural sector and give more emphasis on providing good services to its

customer.

Brand name and goodwill of the company: Kodak have very good image in

financial market.

Good Rewards and Recognition program and effective advisors team: ICICI

have good rewards and recognition program which are held time to time to

motivate its employees and the advisors.

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Self fund management house: ICICI is the only company in India which has its

own fund management house.

Stability of the employees: ICICI provide good facilities, salary and environmentto its employees to make them more stable.

Weakness:-

Small number of staff: total number of employees in KOTA branch is not enough

and the office is also do not have need space as required.

Lack of marketing: another major weakness with ICICI life insurance is lack of

efforts in the marketing of product. There are many few areas where we can see

any kind of marketing push made by company.

Lack of co-ordination among the staff

Lack of trust on company by the customer

Weak in maintaining professional relation: another problem which I have

personally seen is the lack of follow up. ICICI life insurance is not able to handle

and use advisors in proper way.

Opportunities:-

Huge market potential: - the Rajasthan market is very wide the only thing which

is requiring covering it is right approach. But ICICI life insurance is only now in

KOTA and Jodhpur and can spread branches across Rajasthan.

Huge potential for marketing: - insurance sector now in its boom period sothere

is a very huge potential for marketing.

People acceptance: -people are ready to use ICICI life insurance product but only

thing is ICICI is not knocking their door at the right time.

New investment plans: - company should be developed new investment plans that

are different from other company.

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More training programs for the employees and the advisors: - more training

programs for employees beneficial to improve the co-ordination and both of the

employees and the advisors will help the company in maintaining its goodwill in

the market.

Threats:-

Competitors:-the major threat is the kind of competitors in market. The

competitors like ICICI prudential, HDFC standard life insurance, RELIANCE life

insurance, SBI life insurance and many more. ICICI life insurance also facing a lot

of competition from local players.

New players: - new players are coming

Good investment plans of its competitor: - other companies provide good

investment plans.

Delay in marketing decision: - another major threat is delay in marketing

decision as this delay becomes a benefit for ICICI life Insurance competitor.

CONCLUSION

The study undertaken at ICICI life insurance on Performance evaluation and

Management System gave us a lot of exposure and knowledge in the field of

Performance Management. Throughout the study, we analyzed the perception and

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awareness level of employees regarding existing Performance Management

System in ICICI.

The procedure laid down in this system is quite clear to the concerned persons whohave been given the job to measure the performance of various individuals. But yet

the persons (sales manager) at the various levels for whom this policy has been

implemented are not well aware of the procedure and policies followed by this

system.

This policy is capable of identifying the individuals performance and is able to

give information to the management relating to individual performance efficiency,

his promotion criterion and the performance deficiency and means and ways to

minimize his deficiency and take corrective measures to develop the skills of

individuals which is required for the future needs of the organization.

The performance of the sales manager is quite satisfied according the organization

need but if we measured in terms of the team spirit and in using resources it will

become quite low because they knew only selling how their targets can be

achieved but they dont know that how these targets can be achieved through the

co-ordination or resources in a sequential way.

One more important thing is that some employees do their work in stress and they

show it in behave which makes the bad image of the company in the eyes of the

outsiders.

Apart from all this, the management could not implement this system in its true

spirit, yet they are working hard to derive benefits from this. From This day this

PMS is carried on as per stipulated procedures and policies then it is definitely

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going to earn fruitful results for the company (i.e. ICICI life insurance) and will

garnish the entire organization with its presence.

SUGGESTIONS

Companys norms, policies and procedure should be clear in the mind of the

employees so that they have proper idea because they are the representatives

of the company.

.

The communication package should be more effective. And every

information about pms process should be timely communicated to the employees.

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Managerial skill should be developed in employees so that they give more

benefits to the company.

More training programs should be conducted to change the mind set of the

employees that their work is not only is selling but also overall development of

the company.

Some team activities should be there so that the team sprit could be

generated.

In insurance sector stress is the main problem of the employees so some

stress handling sessions should be there so that they can do their work more

effective way.

Induction program should be conducted so that new employees can adjust

themselves & perform well.

Some changes are also required in the infrastructure & working

environment. It should be more comfortable.

Superiors should give more time to employees while they are discussing on

the issue of Performance. So that an employee can discuss all aspects of his/her

strengths and weaknesses.

Performance Management System (PMS) should be accepted in its true

sense; it means the policy should be followed as per stipulated method. One

should not try to remove trunk from Ganeshs Statue.

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Feedback should be given regularly so that individuals could rectify their

performance deficiency within the short period and not after one assessment year.

ANNEXURE (QUESTIONNAIRE)

ANALYZING THE PERFORMANCE EVALUTION AND MANAGEMENT

PROCESS OF ICICI PRUDENTIAL OLD MUTUAL LIFE INSURANCE

LIMITED KOTA

QUESTIONNAIRE

1. What is your job profile in this organization?

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2. Are you satisfied from your job profile?

a) Yes

b) No

3. Are you satisfied from the facilities provided by the company?

a) Yes

b) No

4. What are your achievements in current job profile?

a) Grade________________________

b) Salary________________________

c) Reward and awards_____________

d) Other achievements_____________

5. Are your achievements satisfied the organization needs?a) Yes

b) No

6. To what extent your reports and documentation accurate and complete?

a) Considerably surpassed minimum requirements

b) Exceeded minimum requirements

c) Met minimum requirements

d) Less than minimum requirements

7. Is there any assignment when you work unsupervised.

a) Yes b) No

Is it successful or not?

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a) More successful

b) Less successful

c) Unsuccessful

8. Which skill you have acquired in your present or previous position that makes

you competitive for this position?

a) Managerial skill

b) Technical skill

c) Communication skill

d) Other skill

9. To what extent you displayed initiative in meeting requirements?

a) Displayed considerable initiative

b) Displayed some initiative

c) Displayed little initiative

d) Displayed no initiative

10. How you are utilizing your resources (manpower, money) to achieve your

target within time and cost?

a) Through motivation

b) Through contests and schemes

c) Through incentives and gifts

d) All the above

e) Any other_____________________________________________

11. On what basis company reviews your performance

a) On the basis of time

b) On the basis of target

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c) On the basis of cost

d) All the above

12. What techniques are used by the organization to review your performance?a) Grading & rating

b) Ranking

c) Paired comparison

d) Cost accounting

e) Checklist

f) Other methods

13. What steps should be taken by the organization to improve your performance?

a) Promotion

b) Incentive with salary enhancement

c) More training programs

d) Improvement in working condition

e) Any other________________________________________________________

14. How you associate yourself with organization?

a) Unsatisfactory d) Satisfactory

b) Unproductive e) Productive

c) Uncooperative f) cooperative

h) All D E F

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P ERSONAL DETAILS--

----------------------------------------------------------------------------------------------------

---------------------

(a) Name: - -------------------------------------------------------------------------

(b) Gender: - (1) Male (2) Female

(c) Age: - (1) 20-30 (2) 31-40

(3) 41-50 (4) 50-above

(d) Address: - ----------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------

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----------------------------------------------------------------------------------------------------

(e) City -----------------------------.

Phone No.. Mobile No..

.

(f) Marital Status: - (1) Single (2) Married

(g) Designation-

(h) Educational Background

BIBLIOGRAPHY

Kothari, C.R.(2005), Research Methodology

C.B. Mamoria, S.V. Gankar, Personnel Management

Aswathappa, Human Resource & Personnel Management

www.humanresources.about.com

www.ICICI. Com

www. MyICICIlife.com

www.ICICI life insurance.com

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Documents

The Performance Evalution and Management Process