Venki Project

8/3/2019 Venki Project

1/89

`

A STUDY

ONTRAINING AND DEVELOPMENT

With reference to MAX NEWYORK LIFE INSURANCE CO. LTD.

A Project report submitted to the Andhra University in

Partial fulfillment for the award of Degree of

MASTERS OF BUSINESS ADMINISTRATION (MBA)

Submitted by

K SRINIVASA REDDY

Under the guidance of

Dr. PINAKA PANI

GAYATRI VIDYA PARISHAD

YENDADA

VISAKHAPATNAM

(2007 - 2009)

1


2/89

ACKNOWLEDGEMENT

It is my pleasant duty to express my profound gratitude and esteemed regards to my

project director Prof. B. Rama Krishna Rao , and I also thank my project Guide Dr. PINAKA PANI,

without whose learned and able guidance and encouragement, this work would not have been

completed.

This project owes a lot to many people at MAX NEWYORK LIFE INSURANCE CO.

LTD., I wish to thank them for their help and co-operation. I would like to thank the Vice President

Sri M.L.N. Srinivas and HRD Manager, Sri N.Srinivasa Rao for permitting me to work in the

organization. Last but not least, I am grateful to all the members of MAX NEWYORK LIFE

INSURANCE CO. LTD., for their continuous support and blessings without which, I would not have

completed my work.

K SRINIVASA REDDY

2


3/89

DECLARATION

I hereby solemnly declare that the project report entitled "A study on TRAINING

AND DEVELOPMANT PROCESS in Human Resource Management" in MAX NEWYORK LIFE

INSURANCE CO.LTD, Visakhapatnam is genuine and bonfide work done by me and is not

submitted to any other university (or) published any time before.

This project work is for the partial fulfillment of the requirement for the award of

MBA Degree of Andhra University.

Place: Visakhapatnam

Date:

K SRINIVASA REDDY

3


4/89

PREFACE

The efficiency of an organization depends on how capable its personnel are and how dedicated

they are. The work capability of a person depends on this ability to work and the type of managers

that the company has. In Indian organization, Human Resource Development has gained utmost

importance in recent years because of its contributions that resulted in the achievement of

organizational objectives. Human resource development is not only an activity that an organization

must commit but also a process which should be kept viable in order to maintain knowledge work

force.

There are continuous environment pressures for efficiency and the organization responds to such

pressures effectively. The project study Human Resource Development in this

organization was keenly observed and it was found out that there is an employer -employees

relationship in each and every aspect of the work and more concerned towards the welfare of the

4


5/89

CONTENT

LIST OF TABLES

CHAPTER-1

THEORETICAL FRAME WORK

a) Main Subject

b) Topic related concepts

c) Review of Literature

CHAPTER-2

METHODOLOGY

a) Need significance of study

b) Objectives of study

c) Scope of study

d) Methodology of study

e) Limitations of the study

CHAPTER-3

ORGANIZATION PROFILE

a) Industry Profile

b) Organization Profile

c) Topic profile in the organization

CHAPTER-4 ANALYSIS & INTERPRETATIONS

CHAPTER-5

FINDINGS, SUGGESTIONS & CONCLUSIONS

a) Findings

b) Suggestions

c) Conclusions

BIBLIOGRAPHY

ANNEXURE

5


6/89

S. No. Tables Page No.

4. Data Analysis and Interpretation

Training and development

4.1 Conduct of training programmes

4.2 Objectives and expectations of employees from

training and development

4.3 Nominator for training programmes

4.4 Duration of training programmes-respondents

perception

4.5 Methods/techniques used in training programmes

4.6 Identification of training needs

4.7 Explanation of training objectives before the

training programmes

4.8 Achievement of objectives and needs through the

training programme

4.9 Trainers

4.10 The training calendar

4.11 Frequency of training programme

4.12 Training aids

4.13 Timing for the training programme4.14 Extent of help of training programme

S. No. Tables Page No.

4. Data Analysis and Interpretation

Training and development

4.1 Conduct of training programmes4.2 Objectives and expectations of employees from

training and development4.3 Nominator for training programmes4.4 Duration of training programmes-respondents

perception

6


7/89

4.5 Methods/techniques used in training programmes4.6 Identification of training needs4.7 Explanation of training objectives before the

training programmes

4.8 Achievement of objectives and needs through the

training programme4.9 Trainers4.10 The training calendar4.11 Frequency of training programme4.12 Training aids4.13 Timing for the training programme4.14 Extent of help of training programme

Need for the Study

People need competencies to perform tasks. The nature of the job is constantly

changing due to changes in environment, technology, organizational goals and strategies.

It has become a challenging task for organizations in public, private, joint and co-operative

sectors to cope up with growing competition due to on slot of globalization.

In order to survive in this competitive era, the organizations have to focus on

improving its performance. Towards this end the organizations are running training and

7


8/89

development programs on a regular basis Visakhapatnam Port is one of the major Indian

Ports which has certain unique features. Its performance has been good over the

consecutive years. In this back drop the present study is an effort to examine the training

and development aspects of the organization.

8


9/89

Objectives of the Study

The following are the specific objectives of the study:

1. To study the concept of training and development.

2. To present the organizational profile of Visakhapatnam Port Trust with a focus on

Human Resource Development Department.

3. To review the HR Department activities at Port Trust with a special focus on

Training and Development.

4. To examine the perception of employees regarding existing training and

development programs at Visakhapatnam Port Trust.

5. To make necessary suggestions to bring about meaningful relationship between

Training and Development efforts and efficiency of organization.

9


10/89

Scope of Study

The present study is confined to different departments of Visakhapatnam Port Trust

such as personnel department. Administration department, Civil Engineering Department,

Chief mechanical Department, Marine Department, Maintenance Department, Finance

Department and Traffic Department. Therefore it is hoped that the study in Visakhapatnam

port Trust can give effective results and meaningful conclusions. The study also gives

scope for suggestions and improvements if any.

Limitations:

1. Duration for project study is only 8 weeks which is not sufficient for a detailed

study on HR activities at V.P. T. Hence time is a limiting factor.

2. The information available is not much adequate for studying the organizations

attitude towards Training and Development activities at MAX NEW YORK LIFE

INSURANCE COMPANY.

10


11/89

Methodology

The information pertaining to Training and Development activities, in MAX NEW

YORK LIFE INSURANCE COMPANY are collected from both primary and

secondary sources.

Primary Data:

Discussions with officials of MAX NEWYORK LIFE INSURANCE COMPANY.

Who are directly connected with administration of MAX NEWYORK LIFE

INSURANCE COMPANY. The data is collected through personal observation and

to fulfill the objectives, the information has been obtained from both primary and

secondary data sources. The primary data has been collected in the form of

discussion, interviews and by administrating a structured questionnaire for a sample

of 80 respondents convenient sampling technique was adopted.

Secondary Data:

The secondary sources from which data was collected and presented are

Manuals of different Departments.

V.S.T. Administrative Report (2003 - 2004)

House journals of MAX NEWYORK LIFE INSURANCE COMPANY.

Circulars and statements of MAX NEWYORK LIFE INSURANCE

COMPANY

11


12/89

Insurance profile

INDUSTRY PROFILE

2.1Insurance Industry of India

Insurance may be described as a social device to reduce or eliminate risk of life

and property. Under the plan of insurance, a large number of people associate themselves

by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident,

& burglary. Any risk contingent upon these may be insured against at a premium

commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer

undertakes in exchange for a fixed sum called premium to pay the other party happening

of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result of the

occurrence of unforeseen events.

With the help of insurance, large number of people exposed to a similar risk makes

contributions to a common fund out of which the losses suffered by the unfortunate few,

due to accidental events, are made good.

12


13/89

2.2 Brief History of Insurance Sector In India

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree

turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in the

year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

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

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 taken over by the central

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 of India.

13


14/89

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 (Nationalization) Act, 1972 nationalized 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.

14


15/89

INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the

state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from

Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely ( with effect from Dec'2000,

these subsidiaries have been de-linked from the parent company and

made as independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited

Yr: 2000-2001 : ( From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

15


16/89

Life Insurers:

S.No

.

Registratio

n

Number

Date of

Reg.

Name of the Company

1 101 23.10.20

00

HDFC Standard Life Insurance Company

Ltd.

2 104 15.11.20

00

Max New York Life Insurance Co. Ltd.

3 105 24.11.20

00

ICICI Prudential Life Insurance Company

Ltd.

4 107 10.01.20

01

Kotak Mahindra Old Mutual Life Insurance

Limited

5 109 31.01.20

01

Birla Sun Life Insurance Company Ltd.

6 110 12.02.20

01

Tata AIG Life Insurance Company Ltd.

7 111 30.03.20

01

SBI Life Insurance Company Limited

8 114 02.08.20

01

ING Vysya Life Insurance Company Private

Limited

9 116 03.08.20

01

Bajaj Allianz Life Insurance Company

Limited

10 117 06.08.20

01

Metlife India Insurance Company Pvt. Ltd.

16


17/89

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance

Insurance Company Limited2 103 23.10.2000 Reliance General Insurance

Company Limited.3 106 04.12.2000 IFFCO Tokio General Insurance Co.

Ltd4 108 22.01.2001 TATA AIG General Insurance

Company Ltd.5 113 02.05.2001 Bajaj Allianz General Insurance

Company Limited6 115 03.08.2001 ICICI Lombard General Insurance Company

Limited.

17


18/89

Yr: 2001-2002 :

Insurance Industry in this year, had 5new entrants; namely

Life Insurers:

S.No.Registratio

n

Number

Date of

Reg.

Name of the Company

1 121 03.01.2002AMP Sanmar Life Insurance Company

Limited.2 122 14.05.2002Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 123 15.07.2002 Cholamandalam General Insurance

Company Ltd.2. 124 27.08.2002 Export Credit Guarantee

Corporation Ltd.3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

18


19/89

Yr: 2003-2004 :


Life Insurers:

S.No. Registratio

n

Number

Date of

Reg.

Name of the Company

1 127 06.02.2004Sahara India Insurance Company Ltd.

Yr: 2004-2005 :


Life Insurers:

S.No.Registratio

n

Number

Date of

Reg.

Name of the Company

1 128 17.11.2005 Shriram Life Insurance Company Ltd.

19


20/89

List of Life Insurers

Sr. No. Name of the Company

1 Bajaj Allianz Life Insurance Company Limited2 Birla Sun Life Insurance Co. Ltd3 HDFC Standard Life Insurance Co. Ltd4 ICICI Prudential Life Insurance Co. Ltd5 ING Vysya Life Insurance Company Ltd.6 Life Insurance Corporation of India7 Max New York Life Insurance Co. Ltd8 Met Life India Insurance Company Pvt. Ltd.9 Kotak Mahindra Old Mutual Life Insurance

Limited10 SBI Life Insurance Co. Ltd11 Tata AIG Life Insurance Company Limited12 Reliance Life Insurance Company Limited.13 Aviva Life Insurance Co. India Pvt. Ltd.14 Sahara India Life Insurance Co, Ltd.15 Shriram Life Insurance Co, Ltd.16 Bharti AXA Life Insurance Company Ltd.

20


21/89

2.3 Life Insurance in India

Life Insurance: -Life insurance is a contract between the insurer and

policy owner. Insurer is agreed to pay an amount to the person insured or

his nominee either at the date or maturity or a periodic intervals or

unfortunate death of the policy owner. Policy owner has to pay a fixed

amount called premium in periodic intervals. This can be monthly,

quarterly, half yearly or yearly. Policy owner is allowed to choose the type

of payment and payment cycle. There are many life insurance schemes

availability today in India. Premium amount varies depends on many

factors like age of the policy owner, scheme, type of the policy, sum

assured etc.

THE KEY FEATURES OF LIFE INSURANCE INDUSTRY

Nomination: -When one makes a nomination, as the policyholder you

continue to be the owner of the policy and the nominee does not have

any right under the policy so long as you are alive. The nominee has only

the right to receive the policy monies in case of your death within the

term of the policy.

Assignment:-If your intention is that your policy monies should go only

to a particular person, you need to assign the policy in favor of that

person

21


22/89

Death Benefit: -The primary feature of a life insurance policy is the

death benefit it provides. Permanent policies provide a death benefit that

is guaranteed for the life of the insured, provided the premiums have

been paid and the policy has not been surrendered.

Cash Value: - The cash value of a permanent life insurance policy is

accumulated throughout the life of the policy. It equals the amount a

policy owner would receive, after any applicable surrender charges, if the

policy were surrendered before the insured's death.

Dividends: -Many life insurance companies issue life insurance policies

that entitle the policy owner to share in the company's divisible surplus.

Paid-Up Additions: -Dividends paid to a policy owner of a participating

policy can be used in numerous ways, one of which is toward the

purchase of additional coverage, called paid-up additions.

Policy Loans: -Some life insurance policies allow a policy owner to apply

for a loan against the value of their policy. Either a fixed or variable rate

of interest is charged. This feature allows the policy owner an easily

accessible loan in times of need or opportunity.

Conversion from Term to Permanent: -When in need of temporary

protection, individuals often purchase term life insurance. If one owns a

term policy, sometimes a provision is available that will allow her to

22


23/89

convert her policy to a permanent one without providing additional proof

of insurability.

Disability Waiver of Premium :Waiver of Premium is an option or

benefit that can be attached to a life insurance policy at an additional

cost. It guarantees that coverage will stay in force and continue to grow.

THE BENEFITS OF LIFE INSURANCE

Apart from the insurance coverage there are many other advantages with

a life insurance policy. Policy owner can avail loans from banks and other

financial institutions with a life insurance policy. Individuals can avail tax

benefits as per Income tax department of Indias rules with an investment

in life insurance policy. It is also a good investment method for future

needs. Above all the policy owner gets life insurance coverage for the

insured period.

Risk cover: -Life Insurance contracts allow an individual to have a risk

cover against any unfortunate event of the future.

Tax Deduction: - Under section 80C of the Income Tax Act of 1961 one

can get tax deduction on premiums up to one hundred thousand rupees.

23


24/89

Life Insurance policies thus decrease the total taxable income of an

individual.

Loans: - An individual can easily access loans from different financial

institutions by pledging his insurance policies.

Retirement Planning: - What had provided protection against the

financial consequences of premature death may now be used to help

them enjoy their retirement years. Moreover the cash value can be used

as an additional income in the old age.

Educational Needs: - Similar to retirement planning the cash values

that flow from ones life insurance schemes can be utilized for educational

needs of the insurer or his children.

MARKET SHARE OF LIFE INSURERS (In percent)

Insurer 2003-04 2004-05

First year premium including Single

premiumLIC 87.67 78.78

Private Sector 12.33 21.22

Total 100.00 100.00

Renewal Premium

LIC 98.55 96.18


Total 100.00 100.00

Total Premium

24


25/89

LIC 95.32 90.67


Total 100.00 100.00

INDIA AS AGAINST THE GLOBAL MARKETS

India is an under-insured market Indias insurance market is still at an

early stage of development. This is reflected in low penetration rates and

low premiums per capita.

Insurable population only 10% of Indias population have life

insurance

According to ING only 10% of the population is insured, which represents

around 30% of the insurable population. This suggests more than 300m

people, with the potential to buy insurance, remain uninsured Global

perspective India ranks 19th on the global stage

India represents only around 0.66% market share (ranked 19th) of global

insurance premiums. As of 2004 the largest markets in size are the US

(50x bigger than India), Japan and the UK. Out of the Asian countries (ex

Japan), South Korea is the largest insurance market, Comprising 2.12% of

global premiums, followed by China with 1.61%.

While insurance continues to reach out to the masses, Indias insurance

penetration (premiums as a percentage of GDP) still remains very low at

3.2%. This can be split between life penetration of 2.6% and non-life of

25


26/89

0.6%. On the world stage, penetration rates are significantly below

developed markets such as the US (9.4%), UK (12.6%) and Australia (8%).

Compared with Asian markets, India still falls well short of its nearest

peers with countries such as Japan, South Korea and Taiwan having some

of the highest penetration rates in the world (between 9% and 14%).

Nevertheless, despite current low spend on insurance; the trends in India

remain positive. Since the opening up of the market to foreign players in

2000, penetration has more than doubled from 1.5%. With foreigners

gaining momentum and building the insurance, coupled with Indias

favorable macro overlay, we expect penetration rates to continue to

expand.

26


27/89

INSURANCE REGULATORY DEVELOPMENT AUTHORITY

On the recommendation of Malhotra Committee, an Insurance Regulatory

Development Act (IRDA) passed by Indian Parliament in 1993. Its main

aim was to activate an insurance regulatory apparatus essential for

proper monitoring and control of the Insurance industry. Due to this Act

several Indian private companies have entered into the insurance market,

and some companies have joined with foreign partners. In economic

reform process, the Insurance Companies has given boost to the socio-

economic development process. The huge amount of funds that are at the

disposal of Insurance Companies are directed as desired avenues like

housing, safe drinking water, electricity, primary education and

infrastructure. Above all the policyholders gets better pricing of products

from competitive insurance companies.

Liberalization

The opening up of Insurance sector was a part of the ongoing

liberalization in the financial sector of India. The domain of State-run

insurance companies was thrown open to private enterprise on December

7, 1999, with the introduction of the Insurance Regulatory and

Development Authority (IRDA) Bill. The opening up of the sector gave way

to the world known names in the industry to enter the Indian market

27


28/89

through tie-ups with the eminent business houses. What was once a quiet

business is becoming one of the hottest businesses today?

28


29/89

Post-liberalization

The changing face of financial sector and the entry of several companies

in the field of Life Insurance segment are one of the key results of these

liberalization efforts. Insurance business by way of generating premium

income adds significantly to the GDP. Despite the fact that the market is

vast in India for the Insurance business, the coverage is far less compared

with the international standards. Estimates show that a meager 35-40

million, out of a population of 950 million, have come so far under the

umbrella of the insurance industry. The potential market is so huge that it

can grow by 15 to 17 per cent per annum. With the entry of private

players, the Indian Insurance Market may finally be able to make deeper

penetration in to newer segments and expand the market size manifold.

The quality of service will also improve and there will be wide The Life

insurance market in India is likely to be risky in the initial stages, but this

will improve in the next three to five years Therefore, it may be

advantageous to be a second-round entrant. In the Life insurance market

the need risk assessment systems and data that are the key to success in

the Life insurance market are significantly underdeveloped in India even

today

2.4 Life Insurance - Indian Scenario

29


30/89

Life insurance in India was nationalized in 1956 by incorporating Life

Insurance Corporation of India and all private life insurance companies

were taken over by LIC. Again in 2000 Govt. of India passed a new

insurance bill Insurance Regulatory and Development Authority Act and

appointed a new insurance regulator Insurance Regulatory and

Development Authority to issue license to private insurance companies.

This again opened door to private players and major Indian financial

companies tied up with global insurance giants to get more share in

Indian life insurance market. But still Life Insurance Corporation is the

biggest player mainly due to the fact that it is backed by Govt. of India.

2.5 Life Insurance Companies in India

Life Insurer in Public Sector

1. Life Insurance Corporation of India

Life Insurers in Private Sector

1. ICICI Prudential Life Insurance

2. Bajaj Allianz Life

3. HDFC Standard Life4. Birla Sunlife

5. SBI Life Insurance

6. Kotak Mahindra Old Mutual Life Insurance

7. Aviva Life Insurance

8. Reliance Life Insurance Company Limited- Formarly known as AMP

Sanmar LIC

9. Tata AIG Life

30


31/89

10. Metlife India Life Insurance

11. ING Vysya Life Insurance

12. Max Newyork Life Insurance

13. Sahara Life Insurance - Now they are not into business

14. Shriram Life Insurance

15. Bharti AXA Life Insurance Co Ltd

Public and private life insurance companies market share

With a renewed thrust on group covers and success of golden jubilee

policy 'Bima Gold', LIC saw 27 per cent growth in business at over Rs

10,000 crore till October this fiscal but private players aggressively

increased their market share reports Economic Times.

Amid a stiff competition between the state-owned LIC and private

players, the life insurance industry logged a handsome 38 per cent

growth in premium income from fresh policies at Rs 13,763 crore during

April-October 2005, as per data compiled by Insurance Regulatory and

Development Authority.

Insurers Amount of

contribution

% of contribution

Public sector 7426 crore 74.26

Private sector 2618 crore 26.18

TOTAL 10044 100.44

Though most of the insurers continue to grow their businesses, two

private - Birla Sunlife and SBI Life - saw a decline in business till October.

31


32/89

Life Insurance Corporation grew its business by a 27 per cent to collect Rs

10,160 crore in premium after selling about 1.11 crore policies in the first

seven months of 2005-06. LIC improved its market share in the group

insurance schemes significantly from 67 to 83 per cent in a month's time

after covering 5.33 million lives in October alone taking the overall

coverage to 8.15 million lives.

But, LIC's market share came down marginally to 73.82 per cent till

October this year from 74.26 per cent a month ago, as private players

increased their share to 26.18 per cent.

The life insurance behemoth is not worried over erosion in market share

as market continues to grow and new players entered the space.

The 13 private players are slowly but steadily increasing their market pie

to over 26 per cent after collecting Rs 3,602 crore till October.

PRIVATE LIFE INSURANCE COMPANIES MARKET SHARE WITH

ACCORDANCE TO PREMIUM

The life insurance industry clocked 49 per cent growth in new businesses,

while general insurance players saw 16 per cent increase in April, the first

month of the current financial year.

Strong performance by Life Insurance Corporation, ICICI Prudential and

SBI Life helped the 16 player-strong life insurance industry to mop up Rs

2,982 crore in April this year compared with Rs 1,996 crore collected in

32


33/89

the same month last year, according to data compiled by the Insurance

Regulatory and Development Authority.

However, some life insurers such as Bajaj Allianz, ING Vysya Life and

Reliance Life saw a decline in premium collections during the period under

review.

The countrys largest life insurer, LIC, saw new premiums grow 57 per

cent to Rs 2,134 crore in April by selling 15,89,684 policies against Rs

1,355 crore a year ago. It had a market share of 71.56 per cent in April.

The 15 private players together saw their business grow 32 per cent to Rs

848 crore with a market share of 28.44 per cent.

INSURERS PREMIUM

(Rs. in crores)

ICICI Prudential 271.00

Bajaj Allianz 124.00

SBI Life 90.00

HDFC Standard 70.00

Max New York Life 69.00

Tata AIG 48.00

Aviva 39.00

Reliance Life 33.00

Birla Sun life 28.00Kotak Mahindra Old

Mutual

26.00

ING Vysya 22.00

Met Life 19.00

Shriram Life 4.50

Sahara Life 1.70

Bharti Axa Life 0.72

33


34/89

This chart represents private life insurers market share in

accordance with annual premium

ICICI Prudential topped the private players chart with its premium

income rising 84.5 per cent to Rs 271 crore and had 9.08 per cent share

of the market. Bajaj Allianz, which saw 15 per cent decline in business,

collected Rs 124 crore with a market share of 4.16 per cent.

2.6 Major Players in Indian Life Insurance Sector

Life insurance Corporation of India continues to be the dominant life

insurer in India with 2048 fully computerized branches, 100 divisional

offices and 7 zonal offices. All divisional offices are interconnected with

Metro Area Network and LIC has tied up with some banks to offer online

premium collection in selected cities. Also LIC has info kiosks, Interactive

Voice Response System (IVRS) and Info centers in major cities like

Mumbai, Delhi, Chennai, Bangalore, Hyderabad, Ahmedabad and Pune.

In private sector ICICI Prudential Life Insurance is the no.1 player. It is a

joint venture between ICICI Bank, Indias no.1 private bank and

Prudential, a leading international financial services group company from

United Kingdom. Today ICICI Prudential has around 1, 20,000 insurance

advisors all over India 8 banc assurance partners and 200 corporate agent

tie-ups.

MAJOR MARKET PLAYERS

34


35/89

BIRLA SUN LIFE INSURANCE COMPANY - Birla Sun Life Insurance

Company is a 74:26 joint venture between Birla Group and Sun Life

Financial. It is a private sector company. The company was registered on

31/1/2001. The market share for FY 2005-06 was 1.8%.

HDFC STANDARD LIFE - HDFC Standard is a 74:26 joint venture

between HDFC and Standard Life. It is a private sector company. The

company was registered on 23/10/2000. The market share for FY 2005-06

was 3.00%.

ICICI PRUDENTIAL LIFE INSURANCE - ICICI Prudential Life is a 74:26

joint venture between ICICI and Prudential. It is a private sector company.

The company was registered on 24/11/2000. The market share for FY

2005-06 was 7.4%.

LIFE INSURANCE CORPORATION OF INDIA (LIC) - Life Insurance

Corporation of India is a 100% government held Public Sector Company.

Being the first to be established LIC is the forerunner in the Life Insurance

Sector. The market share for FY 2005-06 was 71.7%.

KOTAK MAHINDRA OLD MUTUAL - Kotak Mahindra OLD Mutual is a

74:26 joint venture between Kotak Mahindra bank and Old Mutual. It is a

private sector company. The company was registered on 10/1/2001. The

market share for FY 2005-06 was 0.9%.

35


36/89

MAX NEW YORK LIFE - Max New York Life is a 74:26 joint venture

between J & K Bank, Pallonji & Co and Max New York. It is a private sector

company. The company was registered on 6/8/2001. The market share for

FY 2005-06 was 1.4%.

AVIVA LIFE INSURANCE INDIA - Aviva Life insurance is a 74:26 joint

venture between Aviva and Dabur. It is a private sector company. The


was 1.2%.

ING VYSYA LIFE INSURANCE - ING Vysya Life Insurance is joint venture

between Exide (50%), Gujarat Cements (14.87%), Enam (9.13%) and ING

(26 %). It is a private sector company. The company was registered on

2/8/2001. The market share for FY 2005-06 is 0.80%.

METLIFE INDIA - MetLife India is a 74:26 joint venture between J & K

Bank, Pallonji & Co and MetLife. It is a private sector company. The


was 0.40%.

BAJAJ ALLIANZ LIFE INSURANCE COMPANY - Bajaj Allianz Life

Insurance Company is a 74:26 Joint venture between Bajaj Auto ltd., and

Allianz AIG. The company was registered on 3/8/2001.The market share

for FY 2005-06 was 7.4%.

36


37/89

SBI LIFE INSURANCE COMPANY LTD - SBI Life Insurance Company is a

74:26 Joint venture between SBI and Cardiff S.A. The Company was

registered on 31/3/2001.It is a private sector company. The market share

for FY 2005-06 was 1.9%.

TATA AIG GROUP - TATA AIG group is a 74:26 Joint Venture between

Tata Group and AIG. It belongs to the private sector. The company was

registered on 12/2/2001. The market share for FY 2005-06 was 1.5%.

SAHARA INDIA LIFE INSURANCE COMPANY LTD - First Wholly Indian

Owned Private Life Insurance Company. The Company commenced

operations from 30th October 2004.The market share for FY 2005-06 was

0.1 %.

SHRIRAM LIFE INSURANCE COMPANY LTD - Shriram Life is a recent

entrant into the life insurance sector it is a 74:26 joint venture between

the Shriram Group through its Shriram Financial Holdings and Sanlam Life

Insurance Limited, South Africa. The company expects to start operations

soon.

2.7 Future of Indian Life Insurance Segment

Indian Life Insurance Segment is growing at a rapid rate due to more

liberal approach from Govt. of India and due to the upward trends in

Indian economy and share market. More financial groups and banks

including global players are eyeing the Indian Life Insurance Market.

37


38/89

The Indian Life insurance sector will register a high growth rate in the

future years to come says the report prepared by Fitch Ratings. This will

be due to the innovative products, better distribution network, better

services coupled with other never-before changes that have taken place

in the insurance sector. The report laid stress on branding, customer

service and tailor made products that will assume importance besides

information technology that will become vital to bring down costs in the

future. Also data warehousing, ensuring effective cross selling will grown

in importance to exploit the largely unexploited market.

In FY 2005-06, the Indian Life insurance industry saw a growth of 40.6 %.

This rally is expected to continue as people realize the importance of risk

management. The private sector players are expected to grow with their

innovative and profitable life insurance schemes.

38


39/89

ORGANISATION PROFILE

Overview of the company

Gary Bennett is the Managing Director and Chief Executive Officer of Max New York

Life Insurance Company. In 2005 he joint Max New York Life from New York Life

Insurance Worldwide in Hong Kong, where he was President and Chief Executive. Under

his tutelage Max New York Life has further widened and deepened the pan India

distribution network. The company has positioned itself on the quality platform. In line

with its vision to be the most admired life insurance company in India, it has developed a

strong corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted

life insurance specialist through a quality approach to business

Incorporated in 2000, Max New York Life started commercial operation in 2001. In line

with its values of financial responsibility, Max New York Life has adopted prudent

39


40/89

financial practices to ensure safety of policyholder's funds. The Company's paid up is

Rs. 1032 crore

Having set a best in class agency distribution model in place, the company is

spearheading a major thrust into additional distribution channels to further grow its

business. The company has multi-channel distribution that includes the agency

distribution, partnership distribution, bancassurance, distribution focused on emerging

markets and alliance marketing through employed sales force. The company currently has

33 bancassurance relationships, 14 corporate agency tie-ups and direct sales force at 14

locations. Max New York Life has put in place a unique hub and spoke model of

distribution to deepen rural penetration. The company has 39 (9 hub office 30 spoke

offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York

Life offers a suite of flexible products. It now has 38 products covering both life and

health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need. Besides this, the company offers 6

products and four riders in group insurance business. The company currently has more

than 7500 employees.

Some of the Industry Firsts

First company to provide Free look period of 15 days to the customer. This was

later made mandatory by the regulator

First company to start toll free line for agent services

40


41/89

First and the only life insurance company in India to implement Lean

methodology of service excellence in service industry

First life insurance company in India to provide various services to the agents and

customers over phone

First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

Awards

Among the top 25 companies to work for in India, according to Business world

2003 Great Workplaces of India

Among the top five most respected insurance companies in India as per Business

world 2004 & 2006 survey

Won Indo-American Corporate Excellence Award for Best Indo-US company in

Financial Services Category in 2006

Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards

2006 Among top 3 in Asia Life Insurance Company of the Year Award 2007

instituted by Asia Insurance Review

Received the Amity Corporate Excellence Award 2007

Received the Outlook Money Award for being among the best new insurers in

the country.

Promoters

41


42/89

Founded in 1985, Max India Limitedis a Public Limited company listed on the NSE and

BSE of India with over 26,000 shareholders. Today, Max India Limited is a multi-

business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and

Service oriented businesses of:

Healthcare (Max Healthcare)

Life Insurance (Max New York Life Insurance)

Clinical Research (Neeman Medical International)

Max also Maintains Interests in:

Specialty Plastic Products for the packaging industry (Max Specialty Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr. Analjit Singh and a leading private equity firm, Warburg

Pincus which accounts for 28.7% of the total shareholding. The public and institutional

investors hold the balance shareholding. .

Till 1999, The Companys Main Interests and Partnerships were the following:

Business

Bulk Active Pharmaceuticals Electronic Component Distribution

Mobile Telephony

V-SAT Communications

Plating Chemicals

Information Technology

Partners of max India

42
http://www.maxindia.com/http://www.maxindia.com/http://www.maxindia.com/


43/89

DSM Gist Brocades

Motorola, USA

Avnet Inc., USA

Hutchison Telecom Ltd. Hong Kong

Comsat Investment Inc., USA & Lockheed Martin, USA

Atotech, Germany

Mind Crossing, USA

Max New York Life Insurance, founded as a Joint Venture between Max India Limited

and New York Life, a Fortune 100 company, is one of the leading private life insurers in

India.

Max Healthcare, a subsidiary of Max India Limited is Indias first provider of

comprehensive, standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider

operating across three locations spanning North America, Asia and Latin America.

Comprehensive infrastructure and highly skilled and experienced personnel back each

location.

New York Life LLC

New York Life Insurance Company a Fortune 100 company founded in 1845 is the

largest mutual life insurance company in the United States and one of the largest life

insurers in the world. Headquartered in New York City, New York Lifes family of

43


44/89

companies offer life insurance, annuities and long-term care insurance. New York Life

Investment Management LLC provides institutional asset management and retirement

plan services. Other New York Life affiliates provide an array of securities products and

services, as well as institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength', adhere to the

highest standards of 'integrity' and demonstrate 'humanity' by treating its customers,

agents and employees with compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance companies in the world

with more than USD$215 billion assets under management and has received among the

highest ratings for financial strength from the life insurance industry's principal rating

agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA).

According to Moody's, "New York Life's rating reflects the company's good quality

investment portfolio, ample liquidity, and sound capitalization, as well as the good

growth potential of its international business.

As a leader in the insurance industry, New York Life continues to bring to its operations

new management concepts, advanced technologies, new distribution and training systems

and innovative insurance products

BOARD OF DIRECTORS

Analjit Singh

Chairman,Max India Limited

44


45/89

Gary R. Bennett

Managing director and CEOMax New York Life Insurance

Anuroop 'Tony' Singh

Vice chairman,Max New York Life Insurance

Ted Mathas

President & Chief Operating Officer New York Life Insurance

Management trainees

Gary BennettManaging Director & CEO,Max New York Life

Sunil SharmaChief Operating Officer and Executive Director

Rajit MehtaExecutive Director,Human Resources, Training and Internal Communications

Rajesh SudExecutive Director, Distribution

Anil MehtaDirector, Group Business

Sunil Kakar

Director and Chief Financial Officer

Ajay SethDirector, Legal & Compliance

Debashis SarkarDirector - Marketing, Product Management and Corporate Affairs

Social responsibility of the company

45


46/89

The company donates a part of the total money collected on all policies sold, to SOS

Children's Villages of India at the end of the year.

Max New York Life has been instrumental in changing the paradigm of life insurance in

India. It is the first life insurance company in India to introduce cause related marketing.

Children are at the very heart of Max New York Life's strategy. SOS Children's Villages

of India is internationally recognized for its work in giving underprivileged children a

wholesome life. The mission of SOS is "to help orphaned and abandoned children, by

providing them with a family, a permanent home, education and strong foundation for an

independent life." It's mission ties in with Max New York Life's philosophy of helping

people secure the future of their near and dear ones

MNYL employees at a painting competition at a SOS Village

Max New York Life employee visits to SOS Villages are organized regularly to generate

a sense of ownership and involvement among employees.

Anuroop 'Tony' Singh, making an annual commitment to SOS

Max New York Life has also instituted the David Allen trophy for the Most Socially

Responsible Student at SOS Children's Villages. David Allen, an employee of New York

Life, has donated Rs.50,000 towards the rolling trophy, which will be awarded to a

student, of the Herman Gmeiner (SOS) School at Faridabad, who displays and shows

caring and a social responsibility towards his/her schoolmates or on a larger stage.

46


47/89

Shortly after inception, Max New York Life saw Gujarat being devastated by a ruinous

earthquake. The Max India Family and New York Life International contributed Rs.86.25

lakh towards the permanent care of children affected by the earthquakes in Gujarat.

Tsunami

More recently, in March 2005, New York Life made a donation of Rs. 17 lakh to SOS

Childrens Villages of India for the long-term rehabilitation of survivors of the Tsunami

disaster in Tamil Nadu. The funds will be used by SOS Childrens Villages of India for

the reconstruction of permanent dwellings for fishing communities severely affected by

the Tsunami waves in December 2004. A few weeks earlier, New York Life joined its

joint venture partner Max India in making a donation of Rs. 75 lakh to the Prime

Ministers National Relief Fund. The Chairman of Max New York Life, Analjit Singh,

met Prime Minister Manmohan singh to personally hand over the cheque.

Shortly after inception, Max New York Life saw Gujarat being devastated by a ruinous

earthquake. The Max India Family and New York Life International contributed Rs.86.25

lakh towards the permanent care of children affected by the earthquakes in Gujarat.

INTRODUCTION

47


48/89

Human Resource Management means employing people, developing their resources,

utilizing, maintaining and compensating their services in tune with Job and organizational

requirements.

HR is the most significant factor of production every human being is born with

tremendous potential. HR refers to the knowledge, skills, and beliefs of an organizations

workplace. Enhance their skills, abilities; knowledge in accordance with the changing

requirements of groups, organization and society is the essence of HRD.

Human Resource Development (HRD) is a continuous process to ensure the

development of employee dynamism, effectiveness, competencies and motivation in a

systematic and planned manner.

HRD includes potential development, fast achievement, skill development, ability

to reach out, systems development, understanding of subordinates goals, greater

commitment existing and creating climate, developing integration etc. One of the

important mechanisms of HRD is training and development.

Training: -

Training is the multi-faceted and multi-dimensional phenomenon. For individuals it

provides an opportunity for learning and development for organization it contributes

to increasing the efficiency and productivity.

Training provides solutions to work related problems and issues and also improves

word culture in organizations. It is technique to improve skills and ability of employees to

effectively perform their duties. It is a tool available with the organization to influence the

48


49/89

behavior of its employees and make them rile dynamics, any activity to increase the

knowledge, skill and attitude of employees in order to meet the challenges and the

demands of their work requirements is included under training.

Training is a tool to solve operational problem of supervisory personal, which can

help to reduce turnover absenteeism, grievance rates etc., Training is also considered as a

useful technique to fill manpower of organizations, training is considered as an effective

tool to make the employees more energetic and forceful to achieve organizational goals.

Alum Jones classifies the training process in to eight categories of activities, viz..

Diagnosing (identifying the need), translating (indicating what learning is required),

designing (designing learning strategies and methods), researching (developing and

organizing resource required), implementing (brining about the acquisition of the training

required), enabling (ensuring application and development of learning), catalyzing

(helping to bring about support action required) and evaluation (helping to evaluate in

organizational terms). He holds the view that the process of training is flexible and it can

be commenced of any point. Hudson points out four subsistence of a training process viz.

Diagnosis, prescription, constructing and evaluation. He further brings out that the training

systems has got the eight stages in the preparation, Such as training perception , analysis

of the subject matter, planning, learning techniques, creating draft courses, production and

installation of the course and validation of the course.

49


50/89

Training:- Training is a process of learning a sequence of programmed behavior .It is

application of behavior it gives people an awareness of the rules & procedures to

guide their behavior. It attempts to improve their performance on the current job or

prepare them for an intended job.

Development: - Development is a related process. It covers not only those activities

which improve job performance but also those which bring about growth of the

personality help individuals in the process towards maturity & actualization of their

potential capacities so that they became net only good employees but their better man &

women.

Training is the act of increasing the knowledge and skill of an employee for doing a

particular job. Training is short-term educational process and utilizing a systematic and

organized procedure by which employees learns technical knowledge and skills for a

definite purpose.

Dale.S.Beach defines the training as.the organized procedure by which people

learns knowledge and or skill for definite purpose. Training refers to teaching and

learning activities carried on for the primary purpose of helping members of an

organization, to acquit and apply the knowledge skills, abilities and attitudes needed by a

particular job and organization.

The term development is a broad one. It includes both training and education. Its

aim is the improve over all personality of the individual. The team is mostly used in the

context of executives only.

50


51/89

Distinction between Training & Development: -

Training is the act of increasing the knowledge and skill of an employee for doing

particular job.

Management development is a systematic process of growth and development by

which the managers develop their abilities to manage.

It is concern with improving performance of managers by giving them opportunities

for growth and development.

Employees training are distinct from management development or executive

development. While former refers to training given to employees in the areas of

operations, technical and allied areas, the later refers to developing an employee in the

areas of principles and techniques of management administration, organization and allied

areas. Training is designed for non-managers. Development involves managerial

personnel/ Training and development differs in four different ways like what is learned?

Who is learning? Why such learning rakes place? And when learning occurs?

Need for Training:

Every organization irrespective of size should provide training to all employees

irrespective of their qualification, skill etc. it is an on going process.

The need for training is to following reasons:

1. To match the employee specifications with the job requirements and organizations

51


52/89

needs.

2. Organizational viability and transformation process.

3. Changing technology.

4. Change in job assignment.

5. Create productivity effective training helps increase productivity.

6. Quality conscious customers.

7. Stable workplace Feeling confident security at work place. Labors turnover and

absenteeism reduces.

8. Increased safety.

9. Better management.

52


53/89

Objectives of training:

1. To prepare employee both new and old to meet the present as well as changing

requirements of job and organization.

2. To present obsolescence.

3. To impart new entrants the basic knowledge and skill they need for an intelligent

performance of definite job.

4. To prepare employees for higher-level tasks.

5. Exposure to latest concepts, information and techniques.

6. To build up a second line of competent officers and prepare them to occupy more

responsible positions.

7. To develop potentialities of people have next level job.

8. To ensure output of required quality.

9. To reduce no. of accidents by providing safety training.

10. To improve overall performance of organization.

53


54/89

CONCEPT OF TRAINING & DEVELOPMENT

Training - Introduction

In the words of Decenzo and Robbins training is learning experience in that it

seeks a relatively permanent form on the job Employee training is the process where

people learn skills, knowledge, attributes and behavior needed in order to perform their

hob effectively. To be more precise, effective systematic training may be defined as

planning to giver people a chance to learn, to achieve the results that job demands.

From the above-mentioned definition of training, it is clear that here are five main

areas in which training can operate. These areas are discussed as under:

Knowledge: we can impart knowledge. There by we help the trainee to learn, understand

and remember facts, information and principles.

Skills: A skill is a physical act or action.

Techniques: A technique usually involves the application of a method in a dynamic

situation. Using both knowledge and skill. It is a way of behavioral sciences.

Attitudes: Undesirable attitudes of a man based upon ignorance etc. can be changed and

there is a reasonable hope of achieving this in an industrial training.

Experience: Experience is the result of practicing the use of knowledge, skills and

techniques over a period of time and often on a member of different situations, one of the

training officers task is to arrange experience of trainees of a organized basis. Frequently,

this can be achieved by means of job rotation and sometimes by exchange of personnel

between companies.

54


55/89

Distinction between training and development:

According to Lawrence steinmentz Training is a shirt term Process involving a systematic

and organized procedure by which non-managerial person acquire technical knowledge and skill for

definite purpose. Development is a long term educational process consisting of systematic and

organized procedure by which managerial personnel acquire conceptual and theoretical knowledge for

general purpose

Need for Training

The need for training employees would be clear from Observations made by

different authorities: -

To match employees specifications with the job requirements and

organizational needs:

Management finds deviation between employees present specification and the job

requirements and organization needs. Training is needed to fill these gaps by develo9ping

and moulding the employees skills, Knowledge, attitude, behavior etc,. To the time of job

requirement and organizational needs.

Technological Advances:

Every organization should adopt largest technology Mechanization,

Computerization and Automation in order to be effective for its survival technology alone

does not guarantee success unless it is supported by people requisite skills. So,

organization should train the employees to enrich them in the areas of changing technical

skills and knowledge from time to time.

55


56/89

Organizational complexity:

With the emergence of increased mechanization and automation, manufacture of

multiple products or dealing in services of diversified lines, extension of operation to

various regions of the country or in overseas organization of the various regions of the

country or in overseas organization of the companies has become complex. This leads to

growth in organizational hierarchy, which in turn creates problems of coordination and

integration of activities. This situation calls for training in the skills of coordination,

integration and adaptability to the requirements of growth, diversification and expansion.

Organizational Viability and transformation process:

Environmental pressures continuously influence Organizational Viability. The

marker share is lost; of the organization does net adopt itself to the changing factors of

environment. If the organization desires to adopt these changes, first it has to train the

employees to impart specific skills and knowledge in order to enable them to contribute to

the organizational efficiency and to cope with the changing environment.

Change in job assignment: Training is necessity when the existing employee is promoted

to the higher level and when there is some new job or occupation due to transfer.

To increase Productivity: Increased human performances often directly leads to

increased operational productivity and increased Company project. Again Increased

performance and productivity because of training are most evident and effective ways of

performing their jobs.

56


57/89

To improve quality: Better-informed workers are less likely to operational mistakes;

quality increases may be in relation to a company product or service, or in reference to the

intangible organizational employment atmosphere.

To help a company fulfill its future personnel needs: Organization that have a good

internal educational Programme will have to make less drastic manpower changes and

adjustments in the event of sudden employee alternations.

To improve Organizational climate: An endless chain of positive reaction results from a

well planed training Programme production and production quality may be improved by

increase in financial incentives, internal promotions, less supervisory pressure and pay rate

increases, results in increased morale.

To improve health and safety: Proper training can help prevent industrial accidents. A

safe work environment leads to stable mental attitudes on the part of employees.

Managerial attitude would also improve of supervisors know that they can better

themselves through company designed development programs.

Obsolescence prevention: Training and development programs faster the initiative and

creativity of employees and help to prevent man power obsolescence which may sue to

age temperament or motivation or the inability of a person to adapt him self to

technological changes.

Human resource development: It is nothing but the training of employees. The training

is not only in the limits of the work matters but also his duties, rights discipline and all

related matters of his industry. The training in necessary to an employee for his good

performance in his work. The training helps an employee in developing his working

57


58/89

ability as well as high productivity. The main aim of an industry is to get more profits

along with the public service. The profits will come only when the employees of the

organization are skilled and efficient. The efficiency of the employees is come upon due to

the training, which they have received, from their management. So every industry to reach

its goal and objectives need the help its employees.

Training Methods: -

The range of training methods is such that they can provide opportunity to

unskilled to become skilled; they offer people to promote at various levels of the

organization. Training methods may be on-the-job oriented like experience and working

on a particular job, job rotation, guidance and counseling, vestibule school apprenticeship

etc., simulation of a role playing, case method, management game, in-basket exercise,

knowledge based lectures, seminars, workshops, programmed instruction etc,. And

experience methods into on-the job training methods.

58


59/89

TRAININIG METHODS

On the Job Method: -

This type of training, also known as job instruction training is the most commonly

used method. Under this method, the individual is place on a regular job and taught the

skill necessary to perform that job; the trainee learns under5 the supervision and guidance

of qualified wonders or instructor. On-the-job training has the advantage of giving first

hand knowledge and experience under the actual working condition. The problem of

transfer of trainee is also minimized as the person learns on the job. The emphasis is

placed rendering ser5vices in the most effective manner rather than learning how to

perform job. On-the-job training methods include job rotation, coaching, job instruction of

training through step-by-step and committee assignments.

a. Job Rotation: - This type of training involves the movement of the trainee from one job

to another. The trainee receives job knowledge and gains experience from his supervisor

or trainer in each of the different job assignment this method of training is common in

59

ON THE JOB

METHOS

Job rotationsCoachingJob instructionTraining through step

by stepCommittee

assignment

OFF THE JOB

METHODS

Vestibule trainingRole playingLecture methodsProgrammed

instruction


60/89

training managers for general management positions, trainees can also be rotated from job

in workshop jobs. These method givers an opportunity to the trainees to understand the

problems of employees on other jobs and respects them.

b. Coaching: - The trainee is placed under a particular supervisor functions as a coach in

training the individual, The supervisor provides who feedback to the trainee on his

performance and offers him some suggestion as for improvement. Often the trainee shares

some of the duties and responsibilities of the coach and relieves him of his burden. A

limitation of this method of training is that the trainee may nit have freedom or

opportunity to express his own ideas.

c. Job Instruction: - This method is also known as training through step by step. Under

this method trainer explains the trainee the way of doing the jobs, job knowledge and

skills and allows him to do the job. The trainer appraises the performance of the trainee,

provides feedback information and corrects the trainee.

d. Committee Assignments: - Under the committee assignment, group of trainees are

given and asked to solve an actual organizational problem. The trainee solves the problem

jointly. It develops teamwork.

Off-the-Job methods: - Under this method of training, trainee is separated from the job

situation and his attention is focused upon learning the material related to his future job

performance. Since the trainee is nit distracted by job requirements, he can place his entire

concentration on learning the job rather than spending his time in performing it. There is

an opportunity for freedom of expression for the trainees. Off-the-job training methods are

as follows:

60


61/89

a. Vestibules Training: - In this method, actual work conditions are simulated in a

classroom. Material, files and equipment those are used in actual job performance are also

used in training. This type of training is commonly used for training personnel for clerical

and semi-skilled jobs. The duration of this training ranges from days to a few weeks.

Theory can be related to practice in this method.

b. Role Playing: - It is defined as a method of human interaction that involves realistic

behavior in imaginary situations. This method of training involves action, doing and

practice. The participants play the role of certain characters, such as the production

manager, mechanical engineer, superintendents, maintenance engineers, quality control

inspectors, foreman, workers and the like. This method is mostly used for developing

interpersonal interaction and relations

c. Lecture Method: - The lecture is a traditional and direct method of instruction. The

instructor organizes the material and gives it to a group of trainees in the form a talk. To

be effective, the lecture must motivate and crate interest among the trainees. An advantage

of lecture method is that it is direct and can be used for a large group of trainees. Thus,

cost and time involved are reduced.

d. Conference or Discussion: - It is a method in training the clerical, profession and

supervisory personnel. The method involves a group of people who pose ideas, examine

and share facts, ideas and data, test assumptions, and draw conclusions, all of which

contribute to the improvement of job performance. Discussion involves two-way

communication and hence feedback is provided. The participants feel free to speak in

61


62/89

small groups. The success of this method depends on the leadership quality of the person

who leads the group.

Role of Training and Development: - Training impact skills and knowledge of

employees in order that they contribute to the organizations efficiency and be able to cope

up with the pressure of changing environment. The viability of an organization depends to

a considerable extent on the skills of different employees, especially that of managerial

cadre, to relate the organization with its environment. Boss, has identified three factors

which necessitate continuous training in an organization. These factors are technological

advances, organizational complexity and Human relations. All factors are related to each

other. Technological advances tend to increase the size of the organization, which

increased in complexity. Technological advances create human problems also. Thus

training can play the following roles in the organization plays active role in increase skills

for doing a job in a better way. Though an employee can learn many things while he is put

on a job, he can do much better if he learns how to do the job. Training is required even to

maintain minimum level of output. Similar changes are taking place in managerial job

also. Training increases morale of employees. Morale is mental condition of an individual

or group, which determines the willingness to cooperate. High morale is evidenced by

employees enthusiasm, voluntary conformation with regulations and willingness to

cooperate with others to achieve organizational objectives. Training increases employee

morale by relating skills and with their job requirements. Training employees can see the

job in way that is more meaningful because they are able to relate their skills with jobs.

Training attempts to increase the quality of human relations in organization. Growing

62


63/89

complexity of organizations has led to various human problems like alienation, inter-

personal and inter-group problems. Many techniques have been developed through which

people can be trained and developed to tackle many problems of social and psychological

nature trained employees require less supervision. They require more autonomy and

freedom. Such autonomy and freedom can be given if the employees are trained properly

to handle their jobs without the help of supervision. Training people are necessary to

maintain organizational viability and flexibility, viability related to survival of the

organization during bad days, and flexibility.

Steps in Training Program: - Training programmers are costly affair, and a time

consuming process. Therefore, they need to be drafted very carefully. Usually in the

organization of training programs, the following steps are considered necessary.

1. Discovering or identifying the training needs.

2. Getting ready for the job.

3. Preparation of the learner.

4. Presentation of operation and knowledge.

5. Performance try-out.

6. Follow-up and evaluation of the program.

1. Discover or Identifying training needs: - Identification of training needs must contain

three types of analyses - organization analysis, operations analysis, and men analysis.

Organization analysis centers primarily upon the determination goals. The analysis of the

organizational goal establishes the framework in which, training needs can be defined

more clearly.

63


64/89

2. Getting ready for the job: - Under this step, it is to be decided who is to be trained -

the newcomer or the older employee, or the supervisory staff, or all of them selected from

different departments. The trainer has to be prepared for the job, for he is the key figure in

the entire program.

3. Preparation of the learner: - This step consists putting the learner at ease (so that does

not feel nervous because of the fact he is on a new job). In starting, the importance and

ingredients of job, and its relationship to work flow. In explaining why he is being rightly

crating interest and encouraging questions, finding out what the learner already know

about his job or their jobs. In explaining the why of the whole job and relating it to some

job the worker already knows placing the learner as close to his normal working position

as possible and in familiarizing him with the equipment, materials, tools and trade terms.

4. Presentation of operation and knowledge: - This is the most important step on a

training program. The trainer should clearly tell show, illustrate and question on order to

put over the new knowledge and operation. The learner should be told of the sequence of

the entire job, and why each step in its performance is necessary; Instruction should be

given clearly completely, and patiently. The trainer should demonstrate or make use of

audio-visual aids and should ask the trainee to repeat the operation. He should also be

encourage asking the question on order to indicate that he really knows and understand the

job.

5. Performances try out: - Under this, the trainee is asked to go through the job several

times slowly. Explaining him each step; Mistakes are corrected, and if necessary, some

complicated steps are done for the trainee first time. The trainee is asked to do the jib,

64


65/89

gradually building up skill and speed. As soon as the trainee demonstrates that he can do

the job in a right way, he is put on his own, but not abandoned.

6. Follow-up: - This step is undertaken with view to testing the effectiveness of training

efforts. This consists of: Putting a trainee on his own. Checking frequently to be sure

that he has followed instructions; and tapering of extra supervision and close follow-up

until he is q1ualify to work with normal supervision. It is worth remembering that if the

learner has not learnt, the teacher has not taught.

Training policy: - Every company or organization should have well established training

policy. Such a policy represents the top managements commitment to the training of its

employees, and comprises rules and procedures governing the standard of scope of

training. A training policy is considered necessary for the following reasons:

To indicate a companys intention to develop its personal: to provide

guidance in the framing and implementation of programs and to provide information

concerning them to all concerned.

To discover critical areas where the training is to be given on a priority basis,

and

To provide suitable opportunities to the employee for his own betterment.

Training courses: - Training may range from highly specified instruction on the

procedure to be adopted while performing a particular job to every general instruction

concerning the economy and society. Training courses in general areas usually aim at

making an e3mplouee a rounded individual, a happier worker a good citizen, and at

65


66/89

training him for larger responsibilities and future advancement. Such training exerts a

remarkable influence on production and labor. Training programmers are no doubt

expensive; their writhe to a growing concern cannot be over-emphasized.

Support material for training: - A variety of equipment is utilized to impart effective

training. These are lectures (learning by hearing supplemented by reading assignments);

conferences, seminars and staff-meetings (learning by participation); demonstrations

(learning by seeing); and short courses, through coaching. Role playing (learning by

doing) and job rotation (learning by experience). Case or project studies and problem-

solving sessions (learning by personal investigation). Use of pamphlets, charts brochures,

booklets, handbooks, manuals, etc,. Graphs, pictures, books, sliders, movie projectors,

filmstrips, tape recorders etc,. Posters, display, notice and bulletin boards. Reading rooms

and libraries where specified books and journals are maintained fir reference and use/

Under-study and visits to plants. Correspondence courses under which knowledge about

business law, statistics, industrial management marketing, office procedures, retaining and

many other similar subjects may be imparted. Teaching machines,Membership of

professional or trade associations which offer new techniques and ideas to their members.

Training material has to be prepared with great care and distributed among the trainees so

that they may come well prepared to a session and able to understand the operation and/or

demonstrations quickly and correctly.

Training period: - Generally, a training period should not be unduly long; if it is, trainees

may feel bored, uninterested. The ideal session should not be beyond 2 to 3 hours. The

training period may extend from 3 weeks to 6 months or even more, depending upon job

66


67/89

requirements; the physical location of the programmed should be in pleasant surroundings

away from the noise and tension of the work place.

ANALYSIS & INTERPRETATION

Human resources are the greatest assets for any organisation. These resources

should be developed to their fullest extent for the efficient functioning of an organization.

Among the HRD mechanisms, training and development has gained considerable

importance. Training is not only required for the new recruits but also essential for the

existing employees.

The present study is aimed at analyzing the T&D activities at Visakhapatnam Port

Trust. There is a felt need and justification to conduct surveys and to know the perceptions

of employees regarding the existing practices. A structured questionnaire has been

surveyed among 80 respondents by adopting convenient sampling technique and their

perceptions are analysed and interpreted in this chapter.

67


68/89

Table 4.1: Conduct of Training Programmes

S.No. Opinion of the

respondents

No. Of

respondents

% Of

respondents1 Regular 50 100

2. Irregular 0 0

Total 50 100

50

00

10

20

30

40

50

60

Yes No

(Table 4.1)

From the above-mentioned data it can be inferred that training programmes are conducted

in Visakhapatnam Port Trust with regular intervals as all the respondents i.e. 50 (100%)

opined in affirmation.

68


69/89

Table 4.2.: Objectives and expectations of Employees from T & D

S.No. Parameters No. of

respondents

% of

Respondents

1. Complete understanding of different managementfunctions

30 60

2. For my professional growth inthe organization

10 20

3. Improving & solving specificproblems being confronted byme in my job functions.

6 12

4. As a ticket for promotionalpurpose

4 8

5. As a relaxation from myroutine job schedule.

0 0

Total 50 100

30

10

64

00

5

10

1520

25

30

35

1 2 3 4 5

(Table 4.2)

60% of the employees responded that their general objectives and expectations from

training and development programmes are for complete understanding of different

management functions and 20% of them said that, it is for their professional growth in the

organization and 12% felt that for improving and solving specific problems being

confronted by them in their job functions and 8% of them said that it is useful as a ticket

for promotional purpose.

69


70/89

Table 4.3: Nominators for Training Programme


respondents

% of

Respondents

1. Immediate supervisor 32 642. Head of the Department 11 22

3. Members of the team 7 14

4. I personally take the initiative

Total 50 100

32

11

7

00

5

10

15

20

2530

35

Immediate

supervisor

Head of the

Department

Members of

the team

I personally take

the initiative

(Table 4.3)

It was interesting to note that 64% of employees were nominated by the immediate

supervisors for training programmes and 22% of employees responded that Head of the

department nominates them to the training programmes and 14% of them said that

members of T&D team nominate them to the training programmes.

70


71/89

Table 4.4.: Duration of training program - respondents perception.


respondents

% of

Respondents

1. 1-2 days 10 202. 3-4 days 35 70

3. 4-5 days 5 10

4. More than 5 - -

Total 50 100

10

35

5

00

5

10

15

20

2530

35

40

1-2 days 3-4 days 4-5 days More than 5

(Table 4.4).

Duration of training program is also a vital component for achieving the goal of

training. An attempt has been made to identify duration of training program in

Visakhapatnam Port Trust

Majority of the respondents (70%) are in favor of 3 to 4 days duration for training

programs. Very few respondents (10%) opined that the training programs be organized for

5 days.

71


72/89

Table 4.5: Methods/Techniques used in training programme


respondents

% of

Respondents1. On the job 22 44

2. Off the job 28 56

Total 50 100

44%

56%

On the job Off the job

(Table. 4.5)

44% of the employees said that on the job methods are used to train them in the

organization. 56% of the employees responded that off the job methods are used to train

them in the training programmes.

Reason for contradiction:

This occurs as a result of research in the field of training that emerged with new

technique for different jobs. Some jobs demands the on the job training like job rotation

committee whereas the assignment supervisory personnel require of the job training like

role playing programmed institutions and so on.

Table 4.6: Identification of Training Needs

S.No. Parameters No. of % of

72


73/89

respondents Respondents

1. Departmental Requirement 15 30

2. Development of individual

skills

20 40

3. Production Performance 12 244. No idea 3 6

Total 50 100

15

20

12

3

0

5

10

15

20

25

Departmental

Requirement

Development of

individual skills

Production

Performance

No idea

Out of the total sample, a maximum of 40% of respondents opined that the interest

behind the employees of Max New York Life Insurance to undergo training for the

development of individual skills. Some of the respondents (6%) expressed that they have

no idea about the need for training in general. 24% of the employees felt that training and

development enhances the production performance while the rest responded that it helps in

meeting the departmental requirements.

Table 4.7: Explanation of training objectives before the training program

S.No. Opinion of the respondents No. of % of

73


74/89

respondents Respondents

1. Yes 38 76

2. No 12 24

Documents

Venki Project