TABLE OF CONTENT

SR NO PARTICULAR Page No

1 INTRODUCTION TO HUMAN RESOURCE 1-14

MANAGEMENT (HRM)
2 INTRODUCTION TO INSURANCE 15-18

3 INTRODUCTION TO HRM IN INSURANCE 19-38

4 INTRODUCTION TO LIC 39-42

4 LIMITATIONS 43-44

5 FINDINGS 45

6 SUGGESTION &RECOMMENDATION 46-47

● CONCLUSION

● WEBLIOGRAPHY

0
 CHAPTER1
INTRODUCTION TO HRM

 Meaning Human Resource Management (HRM)

Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an
organization's employees. HRM is often referred to simply as human resources (HR). A company or
organization's HR department is usually responsible for creating, putting into effect and overseeing policies
governing workers and the relationship of the organization with its employees. The term human resources was
first used in the early 1900s, and then more widely in the 1960s, to describe the people who work for the
organization, in aggregate.
HRM is employee management with an emphasis on employees as assets of the business. In this context,
employees are sometimes referred to as human capital. As with other business assets, the goal is to make
effective use of employees, reducing risk and maximizing return on investment (ROI).

1
Edwin Flippo defines the term 'Personnel/HR Management as "planning, organising. directing and controlling
of the procurement. Development, compensation, integration, maintenance and separation of human resources
to the end so that individual organisational and social objectives are accomplished."
In the words of David De Cenzo and Stephen Robbins "Human resource management is concerned with the
"people" dimension in management. Since every organisation is made up of people, acquiring their services
developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the organisation are
essential to achieving organizational objectives".

 Why its called as Human Resource Management.

Human: refers to the skilled workforce in an organization.

Resource: refers to limited availability or scarce.

Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the
organization goals and objectives.

Therefore, human resource management is meant for proper utilisation of available skilled workforce and also
to make efficient use of existing human resource in the organisation. The best example in present situation is,
construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next
decade from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry
experts.

Today many experts claim that machines and technology are replacing human resource and minimizing their
role or effort. However, machines and technology are built by the humans only and they need to be operated or
at least monitored by humans and this is the reason why companies are always in hunt for talented, skilled and
qualified professionals for continuous development of the organization.

2
Therefore humans are crucial assets for any organisation, although today many tasks have been handing over to
the artificial intelligence but they lack judgement skills which cannot be matched with human mind.

 PROCESS FOLLOWED BY HUMAN RESOURCE MANAGEMENT

Human Resource Management is the process of recruiting, selecting, inducting employees, providing
orientation, imparting training and development, appraising the performance of employees, deciding
compensation and providing benefits, motivating employees, maintaining proper relations with employees and
their trade unions, ensuring employees safety, welfare and healthy measures in compliance with labour laws of
the land and finally following the Orders / Judgements of the concern High Court and Supreme Court, if any.

Human Resource Management deals with the management functions like planning, organizing, directing and
controlling

3
It deals with procurement of human resource , training & development and maintenance of human resource.

It helps to achieve individual, organizational and social objectives

Human Resource Management is a multidisciplinary subject.

It includes the study of management, psychology, communication, economics and sociology.

It also deals with building team spirit and team work.
It is a continuous process.

Human resource management as a department in an organisation handles all aspects of employees and has
various functions like human resource planning, Conducting Job analysis, recruitment and conducting job
interviews, selection of human resources, Orienting, training, compensating, Providing benefits and incentives,
appraising, retaining, Career planning, Quality of Work Life, Employee Discipline, black out Sexual
Harassments, human resource auditing, maintenance of industrial relationship, looking after welfare of
employees and safety issues , communicating with all employees at all levels and maintaining awareness of and
compliance with local, state and federal labor laws.

The historical rule of thumb for Human Resource staffing requirements is one full-time professional Human
Resource person should be hired for every 100 employees. The actual ratio for a business can vary depending
upon factors such as the degree of HR centralization, the geographic distribution of the employees served, the
sophistication level of the employees, and the relative complexity of the organization.

 NATURE OF HRM / FEATURES OF HRM

The Nature / Features of HRM can be briefly described as follows :

1. HRM is Process
HRM is a process of four main functions
a) The acquisition function includes human resources planning, recruitment and
selection of employees
b) The development function is concerned with training and development of
employees.

4
c) The motivation function includes providing recognition and rewards to the
employees.
d) The maintenance function is concerned with providing good working conditions
welfare facilities etc.

2. Focus on Objectives
HRM places emphasis on the accomplishment of objectives. The objectives objectives can be
broadly listed under four categories ..
a ) Individuals or personal objectives of the employees
b) Group or departmental objectives
c) Organisational objectives.
d Societal objectives

3. Universal Application
HRM is applicable not only to business organisations, but also to any other type of
organisation. Acquiring and maintaining good people is critical to the success of every
organisation whether profit or non- profit, public or private

4. Continuous in Nature
HRM is a continuous activity. Organisations need to manage human resources on a
continuous basis. This is because of growing expectations of the employees. Also, there are
constant changes in the environment. Therefore, there is a need for the organisations to
adapt to environmental changes.
Integrated Use of Subsystems

5. HRM involves the integrated use of subsystems such as training and development.
carer development, organisational development, performance appraisal, potential appraisal,
etc. Emphasis needs to be placedi in all possible areas so that individual, group, and
organisational effectiveness is enhanced,

5
6. Multidisciplinary Approach
HRM is dynamic and multidisciplinary approach. t draws upon education
management cience, psychology, communication, economics, organisation behaviour,
philosophy and sociology. Since HRM aims at improving individual, group and
organisational effectiveness, it involves the use of various disciplines of social sciences.

7. Key Element in Coping with Problems

Economic, technological and social trends have created acute problems for businessand industry. As a result,
management has focused attention on HRM as a key element in
coping with these problems. This is because such problems can be solved with the help of
committed efforts and competencies of human resources.

8.Development of Team Spirit

HRM aims at developing and maintaining team spirit in every organisational unit
i.e., groups, and departments. Such team spirit is required so that the people work effectively
together and contribute to the success of the organisation.

9. Development of Employees' Potentialities

ARM aims at development of employees' potentialities to the maximum possible extent,
o that gain maximum satisfaction from their job Employees potentialities can he developed
through effective training and development programmes.

10. Long-term Benefits

HRM brings long-term benefits to the individuals, organisations, and the society as well
Employees gain long-term benefits by way of better monetary and non-monetary incentives
The organisation can gain by way of higher returns on investment, and better corporate
image. The society can he benefited by way of better quality of goods and services.

6
  SCOPE OF HRM

The scope of HRM is based on the various functions or activities of HRM. The various
activities that describe the scope of HRM are as follows

1. Human Resource Planning

The HR manager has to undertake HR planning. The HR needs to review the
organizational goals or objectives. On the basis of the goals or objectives, the HR manager
needs to understand the various activities required achieve the goals. Accordingly, the
manager has to make human resource requirement forecast, and then human resources
supply forecast. If there are differences between human resource requirement forecast and
human resource supply, then the HR manager needs to take appropriate action. For instance
if there is shortage of human resources, then he has to make arrangement for acquiring

7
human resources
type of manpower the HR manager should make necessary arrangementsfor recruitment

2. Acquisition Function
The acquisition function begins with human resource planning. For acquiring the right
and selection of human resources. Proper procedure needs to be followed to select the right
type of manpower in the organization.

3. Placement Function
The HR manager is also responsible for proper placement of employees in the
organisation. Placement refers to fitting the right person at the right place of work. Proper
piacement not only brings job satisfaction to the employees, but it also results in higher
efficiency of the employees.

4. Performance Appraisal
The HR manager may be involved in designing and/or undertaking performance
appraisal programmes in the organization. Proper performance feedback to o tne the employees,help to correct
their weakness, and to consolidate their strength.

5. Training and Development

One of the major activities of HM is to provide training and development to the
employees of the organisation. Training and development programmes enable the
employees to :
i) Acquire additional knowledge
ii) Develop attitudes
iii) Improve skills, and
iv) Develop social behaviour

6. Career Development

8
HRM facilitates career development of the employees in the Career development refers
to the continuous effort to match long-term individual and organisational needs. HRM
should fulfill career aspirations of the employees and should facilitate to the future
requirements to the employees in the light of organizational goals. Career development notonly helps the
employees' concerned but also the organisation to become dynamic and
growth oriented.

7. Employees' Welfare
HRM is responsible for the employee's welfare. Welfare measures include crèche
facilities, holidays with pay, medical, insurance, canteen facilities, recreation facilities rest
rooms, transport facilities, and so on. Appropriate and timely welfare facilities motivate
employees and make them committed and dedicated towards their work and the
organization

8. Compensation Function
Employees must be re-warded and recognized for their performance. HRM is
responsible to design proper compensation package to the employees. Appropriate rewards
not only motivate employees but such actions on the part of the organisation communicate
the organisation's values to the employees. Rewards are provided to the individuals, and to
the teams. The rewards may be in the form of higher pay, bonus, other monetary incentives
and non-monetary incentives such as certificate of appreciation, and so on

9. Labour Relations
relations, joint consultations, negotiating, collective bargaining, grievance handling
disciplinary actions, settlement of industrial disputes, etc.

10. Maintenance Function

HRM is concerned with the maintenance function. It involves protecting and promoting
health and safety of the employees. For this purpose, the organisation may adopt health and

9
safety measures, and provide other fringe benefits such as medical aid. Social security
measures like provident fund, pension, gratuity, maternity benefits, injury or accident
compensation, etc., are also provided to the workers.

 OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

HRM can be broken down into the following four category objectives:
Societal objectives. These are measures put in place to respond to the ethical and social needs or challenges of
the company and its employees. This includes legal issues such as equal opportunity and equal pay for equal
work.
Organizational objectives. These are actions taken to ensure organizational efficiency, including providing the
appropriate training, hiring the right number of employees for a given task and maintaining high employee
retention rates.
Functional objectives. These are the guidelines used to keep HR functioning properly within the organization.
They include ensuring all HR resources are allocated to their full potential.
Personal objectives. These are the resources used to support the personal goals of each employee. They include
opportunities for education and career development, as well as maintaining employee satisfaction.

10
More specific objectives of HRM include the following:
 The primary objective of HRM is to ensure the availability of competent and
o dedicated workforce. Acquiring and maintaining good people are critical to the
o success of every organisation, whether profit or non-profit, public or private
 To make effective use of human resources along with other resources physical and financial so as to
attain the overall objectives of the organisation
 To motivate the human resources through adequate monetary and non-monetary
o incentives so as to stimulate better performance, which in turn will enable to
o accomplish the objectives of the organisation
 To maintain a high morale of employees by sustaining and improving .working
o conditions, SO that the best employees remain with the organisation for fairly a long period of
time.
 To develop individuals and groups to their highest potential by offering them the
o right environment within the organisation, and by providing the right amount of

11
 o training and development.
 To secure the integration of the individuals and group with the organization, by
o reconciling individual/group objectives with those of the organization in such a
o manner that the individuals and group feel a sense of involvement, commitment and dedication.
 To establish, and maintain desirable working relationships among all the members
o of the organisation by clearly defining authority and responsibility for each job and relation with
other jobs in the organisation
 To ensure the attainment of social objectives by producing quality goods and
o services and by protecting the interests of various societal groups that are directly or indirectly
connected with the organization.
 Provide and maintain productive employees.
 Make full use of the skills and abilities of each employee.
 Ensure employees have and receive the proper training.
 Build and maintain a positive employee experience with high satisfaction and quality of life, so that
employees can contribute their best efforts to their work.
 Communicate company policies, procedures, rules and regulations to employees.
 Maintain ethical, legal and socially responsible policies and behaviors in the workplace.
 Manage internal and external changes that might affect employees and staffing.

 HRM is typically broken into pre-employment and employment phases, as well as more specific
subsections, with an HR manager assigned to each one. Areas of HRM oversight include the following:
 Employee recruitment.
 Onboarding and retention.
 Talent and workforce management.
 Job role assignment.
 Career development.
 Compensation and benefits.
 Labor law compliance.
 Performance management.

12
  Training and development.
 Succession planning.
 Employee engagement and recognition.
 Team building.
HR managers benefit from having skills and experience in a range of areas. The most essential HRM skills that
professionals should possess include the following:

Communication. A high-level of verbal and written capabilities is required in most HRM jobs.
Recruitment and talent acquisition. Tasks in this area include writing job descriptions, conducting interviews,
assessing candidates, negotiating offers and onboarding new employees.
Employee relations. HR managers must have labor relations skills to address grievances and build positive
employee experiences.
Compliance with legal requirements. HR managers must be up to date with employment laws and regulations.
Conflict management and resolution. Mediation capabilities help HR managers resolve conflicts and other
difficult situations.
Performance management. Managers must set performance standards and help employees develop skills to
achieve them.
Strategic thinking. HR manager jobs require high-level thinking, such as aligning HR strategies with the
company's goals.
Analytics. Data analysis skills help analyze workforce metrics and provide insights for decision-making.
Adaptability. HR managers must be able to deal with changing workplace and societal issues on an ongoing
basis.
Ethics and confidentiality. These skills require knowledge of confidentiality and privacy requirements, as well
as general and industry-specific ethical standards

 Skills and responsibilities of an HR manager

HRM is typically broken into pre-employment and employment phases, as well as more specific subsections,
with an HR manager assigned to each one. Areas of HRM oversight include the following
 Employee recruitment.
 Onboarding and retention.

13
  Talent and workforce management.
 Job role assignment.
 Career development.
 Compensation and benefits.
 Labor law compliance.
 Performance management.
 Training and development.
 Succession planning.
 Employee engagement and recognition.
 Team building.
HR managers benefit from having skills and experience in a range of areas. The most essential HRM skills that
professionals should possess include the following:

Communication. A high-level of verbal and written capabilities is required in most HRM jobs.

Recruitment and talent acquisition. Tasks in this area include writing job descriptions, conducting interviews,
assessing candidates, negotiating offers and onboarding new employees.

Employee relations. HR managers must have labor relations skills to address grievances and build positive
employee experiences.

Compliance with legal requirements. HR managers must be up to date with employment laws and regulations.

Conflict management and resolution. Mediation capabilities help HR managers resolve conflicts and other
difficult situations.

Performance management. Managers must set performance standards and help employees develop skills to
achieve them.

Strategic thinking. HR manager jobs require high-level thinking, such as aligning HR strategies with the
company's goals.

Analytics. Data analysis skills help analyze workforce metrics and provide insights for decision-making.

Adaptability. HR managers must be able to deal with changing workplace and societal issues on an ongoing
basis.
Ethics and confidentiality. These skills require knowledge of confidentiality and privacy requirements, as well
as general and industry-specific ethical standards

14
 CHAPTER-2
INTRODUCTION TO INSURANCE

 Principles of Insurance

A contract signed between two parties, through which one party agrees or promises to cover the loss suffered by
another party by receiving some money (consideration) in return is known as Insurance. The party which agrees
to cover the loss for the other one is called the insurer, and the party whose loss is being covered under such a
policy is known as the insured. The consideration or money paid by the insured to the insurer is known as
Premium. The basic motive behind Insurance is to distribute or divide the risk of one client over a group of
clients and compensate only the loss-bearing parties. Some of the insurances include Health Insurance, Life
Insurance, Marine Insurance, Fire Insurance, etc.

For example, Akanksha takes a Life Insurance Policy from LIC for ₹20,00,000. She is required to pay ₹15,000
annually as Premium. In this case, LIC is the insurer, Akanksha is the insured, ₹20,00,000 is the sum assured,
₹15,000 is the premium, and the agreement between both parties in which all the terms and conditions of
insurance are mentioned is called the Insurance Policy. If anything misfortunate happens to Akanksha (covered
in the insurance policy), the insurance company (LIC) will pay the required sum to Akanksha or her nominee as
the case may be.

15
1. Principle of Utmost Good Faith
An insurance contract is a contract of ‘uberrimae fidei’. It means that it is a contract formed in utmost good
faith. This Principle of Utmost Good Faith states that both the parties of an insurance contract should have good
faith towards each other. Also, each party should communicate the terms and conditions in a non-ambiguous
manner to the other. In other words, the insurer is obligated to provide precise details about the contract to the
insured, who, in turn, should provide all the details regarding the subject matter (for which the insurance is
being taken) to the former. Simply put, this principle requires both the parties to be transparent towards each
other. If the insured fails to disclose the material facts during the formation of the contract, the insurance
contract will be voidable at the option of the insurer. The same goes with the insurer, as they are also obligated
to clear all terms and conditions of the insurance contract.

2.Principle of Proximate Cause

Any loss can be caused because of two reasons: Insured Perils and Uninsured Perils. The Principle of Proximate
Cause states that the insurer is only liable for the losses when they are proximately caused by the perils stated in
the insurance policy. When an insured face a loss that occurred because of two or more causes, then the most
dominant and effective cause is the proximate cause. The insurer is not liable for any loss caused by an
uninsured peril or cause. In other words, if an insured faces a loss because of more than two causes, then the
insurance company will investigate the subject’s most recent cause of loss. The company is bound to
compensate the insured if the immediate cause is the one for which the subject is insured. However, if the

16
immediate cause happens to be other than what the insurance policy states, then no compensation shall be
provided to the insured. However, if the causes of loss include a combination of different insured and uninsured
perils, the assessment of the claim becomes difficult for the insurance company.

3. Principle of Insurable Interest

Having some economic or pecuniary interest in the subject matter of the insurance policy or contract is known
as Insurable Interest. The Principle of Insurable Interest states that the insured must have the insurable the
subject if any destruction of the subject adversely affects the insured. The insured of the insurance contract must
either own the whole or part of the subject, or must be adversely affected by any injury to the subject. For
example, an individual has an insurable interest in his/her parents instead of any stranger.

Insurable Interest plays a different role in different types of insurance:

In the case of insurance of property, the insurable interest of the insured must be present at the time of signing
the insurance contract. However, it does not mean that the insured must own the property at the time of entering
into the insurance contract.

4. Principle of Indemnity
Indemnity means ‘Security against Loss’. The Principle of Indemnity aims at putting the insured (in the event of
loss) in the exact same position he has immediately before the occurrence of that event. In other words, the
insured of the insurance contract can recover the loss suffered by him/her up to the limit of the amount covered
by the insurance policy. The compensation payable to the insured for the loss suffered by him/her is measured in
terms of money. Also, the insured is not allowed to make any profit out of the misfortune or unwanted event.
All life and marine insurance contracts are the contracts of indemnity; however, the life insurance contract is not
a contract of indemnity because one cannot measure the loss arised on the death of the insured in terms of
money.

5. Principle of Subrogation
According to the Principle of Subrogation, after providing the compensation to the insured for the subject-
matter, the insurer gets every right against the third party. This principle is applied to all the insurance contracts
that are the ‘Contracts of Indemnity’.

17
6. Principle of Contribution

According to the Principle of Contribution, an insurer who has already paid the amount of claim to the insured
has a complete right to recover the proportionate contribution from the other insurer. In other words, the
principle states that an insured can take more than one policy for a subject or property. However, if an insured
faces a loss for the subject or property, then he/she has no right to recover more than the full compensation
amount of the actual loss. In other words, if the insured gets the full amount of the actual loss from one insurer,
he/she cannot obtain further money from the other insurer. However, the insurer who has paid the full amount to
the insured will recover the proportionate amount of contribution from the other insurer. The principle aims at
distributing the losses between the insurers equally.

7. Principle of Mitigation
According to the Principle of Mitigation, the insured is obligated to take reasonable steps to minimize the
damage or loss to the insured subject or property. The main aim behind this principle is to ensure that the
insured does not become careless towards the insured property or subject after taking the policy for covering the
risks. If the insured does not take reasonable care of the insured property, then he/she might lose the claim
amount from the insurer.

 HISTORY OF INSURANCE SECTOR IN INDIA

The history of Insurance in India started with life insurance in 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the
non-indian lives as Indian lives were considered more risky for the coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same
premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The
General Insurance Business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance

18
Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British.
Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and
the provident fund Act of 1912. Several frauds during 1920's and 1930 sullied insurance business in India. By
1918 there were 176 insurance companies. The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at
a faster pace after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban.

19
 CHAPTER-3
INTRODUCTION TO HRM IN INSURANCE

 HRM IN INSURANCE

Insurance is a form of risk management primarily used to hedge against the risk of a contingent
Loss.
Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in
exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent
a large, possibly devastating loss.

An insurer is a company selling the insurance; an insured or policyholder is the person or

entity buying the insurance.
The insurance rate is a factor used to determine the amount to be charged for a certain amount
of insurance coverage, called the premium.

Under present market forces and strict competition, the insurance companies

20
are forced to be competitive. Contemporary companies must seek ways to become
more efficient, productive, flexible and innovative, under constant pressure to
improve results. The traditional ways of gaining competitive advantages have to be
supplement with organization capability i.e. the firm's ability to manage people.

Organizational capability relates to hiring and retaining competent employees and

developing competencies through effective human resource management practices
Indeed, developing a talented workforce is essential to sustainable competitive
advantage. High performance work practices provide a number of important sources
of enhance organizational performance. HR systems have important, practical
impacts on the survival and financial performance of firms, and on the productivity
and quality of work life of the people in them.

Liberalization in the Indian insurance sector has opened the sector private
competition. The insurance industry forms an integral part of the global financial
marker, with insurance companies being significant institutional investors. In recent
decades, the insurance sector, like under financial services, has grown in economic
importance.

A number of foreign insurance companies have set up representative offers in India

and have also tied up with various asset management companies.
All these developments have forced the insurance companies to be competitive.
What makes a firm best is not just technology, bright ideas, masterly strategy or the
use of tools, but also the facts that the best firms are better organized to meet the
needs of their people, to attract better people who are more motivated to do a
superior
In this manner the management of human resources becomes very crucial. Thus, this
study on HRM practices in insurances companies was taken up.

 INSURANCE JOB DESCRIPTION

The insurance job description which is generally assigned to people working in the insurance
industry is given below:
To handle all the affairs of the customer related to the policies or the
services offered by the insurance company and to resolve any conflicts
arising if any.

21
To work for insurance company or several insurance companies and finding clients in
3.order to create awareness about the insurance policies that the insurance company has to
offer.
The job responsibility
may include finding out if the claim made by the client for
insurance cover warrantees insurance or not.
To investigate whether all the premiums were paid on time and whether the claim made
falls in the particular insurance policy.

To meet potential customers and sell them the insurance policies being offered by the
insurance company,
Competencies required for job in insurance
Any Insurance job seeker must possess the following set of skills:
Public Speaking: A good insurance professional should have strong communication as
well as public speaking skills.
Computer knowledge: Basic knowledge of computers including Microsoft Word,
WordPerfect, Outlook, Excel, PowerPoint, Tally etc would prove to be an asset.
People skills: An Insurance professional should be able to communicate as well as
interact with other working professional including colleagues as well as clients of the
company.
Organisational skills: As an insurance job includes organizing work it is necessary to
have good skills in this department.

 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

Behind production of every product or service there is an human mind, effort and man hours (working hours).
No product or service can be produced without help of human being. Human being is fundamental resource for
making or construction of anything. Every organisation desire is to have skilled and competent people to make
their organisation competent and best.

22
Among the five Ms of Management, i.e., men, money, machines, materials, and methods, HRM deals about the
first M, which is men. It is believed that in the five Ms, "men" is not so easy to manage. "every man is different
from other" and they are totally different from the other Ms in the sense that men possess the power to
manipulate the other Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power
to think and decide what is good for them.

 IMORTANCE OF HRM IN INSURANCE SECTOR

Human resource is one of the natural resource of any country's economy It is the
wealth of the country. In the context of insurance, human resource is of great

23
importance. The deployment of human resource through proper and efficient
selection, training and development is called Human Resource Management. The
success of an insurance company largely depends on efficient human resource
management, apart from operations marketing and sales,the HR department manages
all the efficient people working in operations and marketing divisions in any
organization.

The importance of management in business is universally accepted

Modern business is highly Competitive needs efficient and capable management
following are few of the points the suggest the importance of management:

1. Optimum use of resource

2. Competitive Strength
3. Motivates employee
4. Expansion of Business
5. Reduces turnover & absenteeism

 IMPORTANCE OF HRD IN INSURANCE SECTOR

Human resource is one of the natural resources of any country’s economy. It is the
Wealth of the country. In the context of insurance, human resource is of greater
Importance. The deployment of human resources through proper and efficient
Selection, training and development, is called Human Resource Management. The
Success of any insurance company largely depends on efficient human resource
Management, apart from operations marketing and sales, the HR department manages
All the efficient people working in operations and marketing divisions in any
Organizations.

24
HRD full form is Human Resource Development.
Human Resource Development (HRD) is a crucial aspect of any organization, which involves the process of
developing and nurturing the skills, knowledge, and abilities of employees to improve their performance and
productivity.
In this blog, we discuss the features, objectives, types, functions, importance, and other relevant information
related to HRD.

Need for HRD and Its Management in insurance sector

1.There are many changes in the ınsurance sector en account of changes in the industry due to the entry of new
insurance companies. Therefore, it has become a necessity to recruit, train and deploy people at all level
efficiently for better performance and success. This is the basic function of HRD, which
includes the concept of HRM.
2. In view of the changes in the political scene in the recent past, sweeping changes are expected to take place in
the insurance industry. It is expected that only a few insurance companies will remain after a series of
amalgamations and mergers, not only in the Indian assurance industry, but also at the
international level.
3. Emergence of new private sector insurance companies, competition and self- regulation bus necessitated
efficient Human Resources Management in insurance companies. HRM is a continuous process, involving
selection, recruitment and training on an ongoing basis for the staff and their deployment
in the right place The activity is called HR development.

 EFFICIENCY IN INSURANCE SECTOR WITH HRM

1. T he crucial factors behind successful insurance companies will be continuous and sustained build up of
skills, knowledge, education and attitudes among people working in c the companies, particularly the frontline
staff, working
the branches.

25
2. It is possible through professionalization which is an internal part of HRM. The staff could be motivated and
encouraged to practice professionals for their personal growth and thus contribute to the organization's growth.

3. Building efficiency is therefore largely dependent on the best selection process adopted by the HR
department. There is imperative need to build up skills within an organization for the successful managing of
available HR.
Insurance companies have vast human resource specialized in multiple disciplines like technology, law, sales,
underwriting, administration, risk management etc. The basic function of HR is to manage them efficiently for
continuous success. For building up better efficiency in insurance sector,
HRM have to follow the below.

1. EMPHASIS ON JOB DESCRIPTION AND JOB ASSIGNMENT

One of the important functions of HR department is to ensure proper definition for workers in the insurance
companies.
The staff should know about the vacant positions and the skills required for those particular jobs.
Accordingly, people should be recruited to that particular job.
The allotment of a job to a right person, who has the required skills, is called job assignment. If this function is
not properly performed by the HR department, people in all departments will be in a chaotic situation. This will
impair their performancenand subsequently customer service. Improvement in performance and skills of
existing employees can be achieved through recruiting the right person for the right place. Thus, job description
and job assignment are parallel concept requiring attention.

2. RESPONSE TO THE CHALLENGES IN FUTURE Insurance companies should chalk out a wide range of
strategic responses to the future challenges. They have to look into the structure procedures and processes of the
systems and make policies accordingly, to ensure necessary changes. It is the foremost function of HRM
Insurance companies have to convince their employees that that a challenge is an opportunity to prove oneself.
Companies in India have to utilize this opportunity before the competition overtakes them and people in banks
have to respond immediately 1o the challenges. This requires the HR department to work efficiently. Insurance
companies are in the service industry, where the raw material is HR, HRM, therefore, emerges as a very basic

26
and important element for strategic response to the changes that are taking place in the insurance sector. HR
departments should take it seriously to formulate policies to meet these challenges. HRD is a critical
management function. Each manager should have initiative, awareness, co- l ordination and facilitation to
perform his role. This is critical functionof HRM

 FUNCTIONS OF HRM IN INSURANCE

As it can be seen from the data collected and fro in the case studies that of
the insurance companies believe that investing in HRM is necessary in order to
strengthen the insurance sector. Investing in HRM practices allows companies to
strengthen their human resources. Human resources are one of the most important
resources in any Organization. Efficient management of human resources is necessary
for the success of an organization. Efficient HRM practices leads to employee
satisfaction. Employee's performance improves which benefits the entire organization.
Employees are motivated and they perform better. This will in turn lead to increase in
customer satisfaction and the organization will be able to increase its customer base.

We use the notion of analytical HRM 10 emphasize that the fundamental con of
the academic management discipline of HRM is not to propagate perceptions of best
practice in excellent companies' but, first of all, to identity and explain what happens
in practice. Analytical HRM privileges explanation over prescription . The primary
task of analytical HRM is to build theory and gather empirical data in order to account
for the way management actually behaves in organizing work and managing people
aces different jobs, workplaces, companies, industries, and societies.

We are not simply making an academic point here Education founded on an

analytical conception of HRM should help practitioners to understand relevant theory
and develop analytical skills which can be applied in their specific situation and that

27
do not leave them flat-footed when they move to a new environment. The weaknesses
of a de contextualized propagation of best practices were classically exposed by Legg
in her critique of the personnel management literature.
BElOW SOME FUNCTIONS OF HRM IN INSURANCE ARE MENTIONED:
HRM consist of several interrelated functions. These functions are common to all
organization.

1) PROMOTION

Promotion Meaning

A promotion signifies the elevation of an employee's rank or position within an organizational hierarchy, often
as a reward for good performance. It involves screening, interviews, tests, and sometimes training to ensure the
employee can handle added responsibilities. Promotions can entail changes in designation, salary, benefits, and
job activities.

Bases of Promotion:

28
1. Promotion by Seniority
- Based on length of recognized service.
- Simple, objective, and widely accepted.
- Provides job security but lacks encouragement for learning.
- Can affect morale and increase turnover.
- May lead to increased price sensitivity for consumers.

2. Promotion by Merit
- Based on ability to work.
- Just and fair method, boosts morale, and encourages skill improvement.
- May be difficult to implement and lacks wide acceptability.
- Potential for partiality and opposition from senior employees or unions.

Essentials of Promotion Policy

- Policy should be in writing, understood by employees, and emphasize promotion from within.
- Clearly define basis of promotion (seniority or merit), giving weight to both.
- Align promotion with job analysis and training programs.
- Follow a scientific evaluation process for performance assessment.
- Recommendations for promotion should come from immediate supervisors and be subject to approval.
- Include provisions for challenging promotions within policy limits to ensure fairness.
- Vacancies should be notified in advance, and candidates selected before the position becomes vacant.

2) TRANSFER

29
Definition
Edwin B. Flippo defines the transfer as 'a change in job where the new job in
substantially be equal to the old in terms of pay, status and responsibilities.
Meaning
Transfer Overview

Transfer refers to the movement of an employee from one job to another within the organization, typically
without significant changes in duties, responsibilities, skills, status, or compensation. It is a horizontal shift and
can involve various types based on its purpose.
Principles of Transfer.

1. Transfers should be made only when absolutely necessary, with clear guidelines on frequency and minimum
periods between transfers.
2. The basis of transfer should be properly decided.
3. Transfers should not be punitive or made to trouble employees.
4. Employees should be consulted and informed about the reasons for transfer, ensuring it's in the best interest
of both the organization and the employee.

30
5. Requests for transfers based on sound personal grounds should be considered sympathetically and promptly.

Types of Transfer.

1. Production Transfers: To balance workforce between departments facing different work pressures.
2. Replacement Transfers: Senior employees replace junior ones or fill in for new employees.
3. Versatility Transfers: Aimed at increasing employees' skills and readiness for promotion.
4. Shift Transfers: Movement between shifts, often to accommodate employee preferences or social obligations.
5. Curative or Remedial Transfers: Made to rectify faulty selection or placement procedures.
6. Precautionary Transfers: To prevent misuse of office or misappropriation of funds.
7. Personal Transfers: Made to meet employees' personal requests or health considerations.

Transfers are also utilized in training programs to prepare employees for different positions and are an integral
part of sound personnel policies, aiding in enhancing employee efficiency.

In Short: Transfer involves moving employees between jobs within the organization, maintaining consistency in
duties and responsibilities. Principles include necessity, fairness, consultation, and consideration of personal
factors. Types range from production to personal transfers, each serving specific organizational needs.

3) RECRUITMENT

31
Recruitment is the process of finding and attracting suitable candidates to fill job openings within an
organization. It involves discovering manpower sources, stimulating candidates to apply, and facilitating the
selection of an efficient workforce.

External Factors Affecting Recruitment:

1. Supply & Demand: Availability of manpower internally and externally.

2. Labour Market Conditions: Employment conditions in the community.
3. Image/Goodwill: Employer reputation impacting attraction and retention.
4. Political, Social, and Legal Environment: Government regulations affecting recruitment.
5. Competitors: Influence of competitors' recruitment policies.

Internal Factors Affecting Recruitment:

1. Recruitment Policy: Objectives and framework for recruitment programs.

2. Human Resource Planning: Determining recruitment needs based on existing manpower.

32
3. Size of the Firm: Impact of organization size on recruitment strategies.
4. Cost: Consideration of recruitment expenses.
5. Growth & Expansion:Recruitment aligned with organizational expansion.

Sources of Recruitment:

Internal Sources:
- Promotions and Transfers
- Job Posting
- Employee Referrals
- Rehiring Retired and Retrenched Employees

External Sources:
- Campus Recruitment
- Advertisements (Newspapers, Television, Radio)
- Placement Agencies
- Employment Exchanges
- Labour Contractors
- Poaching / Raiding
- E-Recruitment / Online Recruitment

Advantages of Internal Recruitment:

- Cost-effective
- Better understanding of internal candidates
- Enhances morale and motivation
- Ensures continuity of operations

Advantages of External Recruitment:

- Access to new skills and talent

33
- Compliance with reservation policies
- Avoids resentment and provides a wider choice of candidates

In Short: Recruitment is the process of sourcing and attracting candidates to fill job openings. It considers
external factors like supply & demand and internal factors like recruitment policies. Sources include internal
promotions and external methods such as campus recruitment and advertisements.

4) SELECTION

Recruitment involves locating potential employees and encouraging them to apply for vacancies, influenced by
factors like labour market size, company image, job nature, and compensation.

Selection Definition:

Selection is the process of choosing individuals with relevant qualifications to fill job roles. Its purpose is to
identify candidates who can most successfully perform the job.

Standard Process of Selection:

1. Reception: Creating a favorable impression on applicants, providing honest information about employment
possibilities.
2. Preliminary Interview: Conducted by junior executives to assess applicant suitability based on education,
experience, aptitude, etc.
3. Application Blank: Collects information on personal, marital, educational, and employment background of
applicants.
4. Selection Testing: Includes various tests like intelligence, aptitude, personality, achievement, simulation,
graphology, and polygraph tests to objectively assess applicants' suitability for the job.

34
In Short:

Recruitment aims to attract potential employees influenced by various factors. Selection involves choosing
candidates based on their qualifications and suitability for the job through a series of steps including reception,
preliminary interview, application blank, and selection testing.

5) INDUCTION

It involves familiarizing the new employees with company, the work environment and
existing employees so that the new people feel at home. Once an employee is selected
and placed on an appropriate job, the process of familiarizing him with the job and the
organization is known as induction.
Induction is the process of receiving and welcoming an employee when he first joins
the company and giving him basic information he needs to settle down quickly and
happily and stars work.
Induction is designed to achieve following obiectives:
1) To give new comer necessary information.
2) To build new employee confidence in the organization.
3) It helps in reducing labor turnover and absenteeism.
4 It reduces confusion and develops healthy relations in the organization
5) To ensure that the new comer do not form false impression and negative
attitude towards the organization.
6)
To develop among the new comer a sense of belonging and loyalty to the
organization.
7) To help the new comer to overcome his shyness and overcome his shyness
nervousness in meeting new people in a new environment.
Advantages of Formal Induction:

35
1. Builds a two-way channel of communication between management and workers.
2. Facilitates informal relations and teamwork among employees.
3. Integrates new employees into the organization and fosters a sense of belonging.
4. Develops good relations within the organization.
5. Demonstrates the company's interest in ensuring a good start for new employees.
6. Reduces employee grievances, absenteeism, and labor turnover.
7. Supplies information about the organization, job, and employee welfare facilities.

Information Provided in a Formal Induction Programme:

1. Company history and operations.

2. Organizational structure.
3. Company policies and procedures.
4. Products and services.
5. Department locations and employee facilities.
6. Safety measures.
7. Grievance procedures.
8. Employee benefits and services.
9. Standing orders and disciplinary procedures.
10. Training, promotion, and transfer opportunities.
11. Suggestion schemes.
12. Rules and regulations

6) TRAINING

Training is the process by which employees learn knowledge, skills, and attitudes to further organizational and
personal goals. It includes education, training, and development, all of which are necessary within an
organization to develop workers, provide conventional training, raise efficiency and standards, meet legislative
requirements, and inform people.

36
Training Managers:

Training managers oversee the development, procurement, and conduct of training and development programs
for employees. They recognize that training enhances productivity, quality of work, and worker loyalty,
ultimately contributing to business growth.

Training Specialists:

Training specialists plan, organize, and direct a wide range of training activities. They consult with training
managers and employee supervisors to develop performance improvement measures, conduct orientation
sessions, arrange on-the-job training, and lead programs for job transitions and retraining.

In Short:

Formal induction programs offer numerous advantages including improved communication, teamwork,
integration of new employees, and reduced grievances and turnover. They provide essential information about
the organization, job, and welfare facilities. Training encompasses education, training, and development,
overseen by training managers and specialists who aim to enhance productivity, quality, and employee loyalty
through various training activities.

7) DEVELOPMENT

Development initiatives within an organization serve a dual purpose: enhancing job performance and fostering
personal growth. These activities aim not only to equip employees with the necessary skills and knowledge but
also to facilitate their progression towards maturity and the realization of their potential capacities. By preparing
individuals for higher-level positions and greater responsibilities, development efforts contribute not only to
their effectiveness as employees but also to their growth as individuals within the organizational context.

37
One key aspect of development is the emphasis on management development methods that are not only
effective but also organizationally relevant. On-the-job training methods, such as job rotation, coaching, and
action learning, provide opportunities for employees to broaden their understanding of different aspects of the
business while testing their abilities in various roles. Through job rotation, management trainees gain exposure
to different departments, allowing them to develop a holistic understanding of the organization's operations.
Coaching and understudy approaches involve direct interaction with senior managers or experienced personnel,
providing valuable mentorship and hands-on learning experiences.

Off-the-job development techniques, such as case study methods, management games, and role-playing
exercises, offer opportunities for more structured learning and skill development. Case study methods present
employees with real-world organizational problems, challenging them to analyze, diagnose, and propose
solutions in collaboration with their peers. Management games provide a simulated marketplace environment
where trainees compete in teams, fostering problem-solving skills, teamwork, and leadership development.
Role-playing exercises allow employees to assume specific roles within simulated scenarios, helping them
develop skills in areas such as leadership, communication, and conflict resolution.

8) MOTIVATION

Motivation is a complex and multifaceted process that plays a crucial role in driving employee behavior and
performance within an organization. It encompasses a wide range of factors, including individual, managerial,
and organizational influences, all of which contribute to employees' willingness to exert effort towards
achieving organizational goals.

Effective motivation strategies require a deep understanding of human behavior and the factors that influence it.
While financial rewards and conditions of service play a significant role in motivating employees, other non-
financial factors, such as job design, organizational culture, and recognition, also play a crucial role in shaping
employee motivation.

38
From a performance perspective, employees need to have the necessary skills and abilities to perform their jobs
effectively. This underscores the importance of effective recruitment, selection, and training processes in
ensuring that employees are equipped with the requisite knowledge and skills to perform their roles
competently.

However, job design also plays a critical role in shaping employee motivation. Poorly designed jobs can lead to
dissatisfaction and reduced performance, highlighting the importance of incorporating office automation and
industrial engineering techniques into the job design process. By providing employees with the necessary tools,
resources, and support, organizations can create an environment conducive to motivation and high performance.

Ultimately, effective motivation strategies require a holistic approach that considers both the individual and
organizational factors that influence employee behavior. By addressing these factors comprehensively,
organizations can create an environment where employees feel valued, engaged, and motivated to perform at
their best.

39
 CHAPTER-4
INTRODUCTION TO LIC

Life insurance is actually an agreement between the insured and the insurer in
which the policy holder accepts to pay regular premium to the insurer. In return, the
ser guarantees monetary protection to the insured in case of any accident or mishaps.
the insured dies in accident, financial help is provided to his family members. Thus,
life arance is necessary as it provides protection to not only you but also to your
family in case of any unwanted disaster.
A thriving insurance sector is very important to every modern economy.
Firstly because it encourages the habit of saving, secondly because it provides a safety
net to rural ind urban enterprises and productive individuals. And perhaps most
importantly it generates long- term invisible funds for infrastructure building. The
nature of the insurance business is such that the cash inflow of insurance companies is
constant while the payout is deferred and contingency related. This characteristic

40
feature of their business insurance companies the biggest investors in long-gestation
infrastructure development projects in all developed and aspiring nations. This is the
most compelling reason why private sector (and foreign) companies, which will
spread the insurance habit the societal and consumer interest are urgently required in
this vital sector of the aunomy. Opening up of insurance to private sector including
foreign participation has resulted into various opportunities and challenges in India.

 HISTORY OF LIC

In.j India, insurance has a deep rooted history, It finds mention in the writings of
Mams. atansmnithi), Yagnavalkya (Dharmasastra) and Kauti!ya (Arthasantra). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fine foods, epidemics and famine. This was probably a precursor to
modem day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form marine trade loans and carriers contracts. Insurance in India has
evolved 2 over time heavily drawing from other countries, England in particular.

'Theprocess of insurance has seen evolved to safeguard the interests of people from

41
uncertainty by providing certainty of payment at a given contingency. Life insurance
in its modern form . came to India from England in 1818 with the formation of
Oriental Life Insurance Company (OLIC) in Calcutta mainly by Europeans to help
widows of their kin. Later, due to persuasion by one of its directors (Shri Babu
Muttyal Seal), Indians were also covered by the company. By 1868, 285 companies
were doing business of insurance in India. Earlier these companies were governed by
Indian company act 1866. By 1870, 174 companies ceased to exist, when British
parliament enacted insurance Act 1870. These companies were however, insuring
European lives.

Those Indians who were offered insurance cover were treated as sub-
standard lives and were accepted with an extra premium of 15% to 20%.

 PROFILE OF LIC
LIFE INSURANCE CORPORATION OF INDIA LTd
In 1956, the life insurance business of all companies was nationalized and single the
organisation, the life insurance corporation of India (1MC) was set up. Today,
insurance is almost entirely in the hands of the LIC. The post and Telegraph patient
conduct some business in this atea for its employes, but the volume of that iss in
relation that of LIC, is negligible and declining
The objective of the LIC are to:
Spread life insurance and provide life insurance protection to the masses at
saving through insurance reasonable cost.
Mobilize people saving through insurance linked saving schemes.
Invest the funds to serve the best interest of both the policy holdens and the
nation.
Conduct business with maximum economy, always remembering belongs to
the policy holders.
Act as trustee of the policy holders and protect their individual and collective

42
interest.
Innovate and adapt to meet the changing.

HRM PROVIDE BENEFITE AND OPPORTUNTY TO HUMAN

RESOURCE?

PROVIDE BENEFIT AND

NO.OF OPPORTUNITY(%)
OPPORTUNITY

YES 10

NO 3

DON’T KNOW 0

From HRM the above table it has been say to understand that HRM activity provide
benefits and opportunity to customer and it has been clearly shown in the above table
that 10% HRM people says that it really help the customer to get benefits an
opportunity from life insurance.

43
 CHAPTER-4
LIMITATIONS
While Human Resource Management (HRM) plays a crucial role in the insurance sector, there are several
limitations and challenges that HRM faces in this industry:

1. High Turnover Rates: The insurance sector often experiences high turnover rates, particularly among sales
agents and customer service representatives. This turnover can be attributed to factors such as intense
competition, demanding workloads, and limited career advancement opportunities. HRM struggles to address
this issue through retention strategies and succession planning.

2. Skill Shortages: Recruiting and retaining skilled professionals, especially those with expertise in
underwriting, risk assessment, and actuarial sciences, can be challenging for HRM departments in the insurance
sector. There is a constant need to bridge skill gaps through training and development programs, which can
strain resources and impact productivity.

3. Regulatory Complexity: The insurance industry is subject to stringent regulatory requirements and
compliance standards, which can vary significantly across regions and jurisdictions. HRM faces the challenge of
ensuring that employees understand and adhere to these regulations, which often requires ongoing training and
monitoring efforts.

4. Technological Disruption: The rapid advancement of technology, including artificial intelligence, automation,
and digital platforms, is transforming the insurance industry. HRM must navigate the implications of these
technological changes, including the potential displacement of traditional roles and the need to upskill
employees to adapt to new tools and processes.

5. Diversity and Inclusion: Achieving diversity and inclusion in the insurance sector remains a challenge for
HRM, particularly in leadership roles and traditionally male-dominated areas such as underwriting and risk
management. HRM efforts to promote diversity and inclusion may face resistance or cultural barriers within
organizations, requiring sustained advocacy and support.

44
6. Customer-Centricity: As the insurance industry shifts towards a more customer-centric approach, HRM must
ensure that employees possess the necessary skills and attitudes to deliver excellent customer service and build
lasting client relationships. This may involve revising recruitment criteria, enhancing training programs, and
incentivizing customer satisfaction metrics.

Addressing these limitations requires proactive and strategic HRM initiatives tailored to the unique challenges
of the insurance sector. By identifying and mitigating these challenges, HRM can contribute to the long-term
success and sustainability of insurance companies in a dynamic and competitive market.

45
 CHAPTER-5
FINDINGS
In the insurance sector, Human Resource Management (HRM) plays a critical role in various aspects such as
talent acquisition, training and development, performance management, and employee engagement. Some key
findings from HRM practices in the insurance sector include:
1. Talent Acquisition: Insurance companies prioritize recruiting individuals with strong analytical skills, sales
abilities, and customer service orientation. HRM strategies often involve targeted recruitment efforts to attract
candidates with backgrounds in finance, mathematics, and business administration.

2. Training and Development: Due to the technical nature of insurance products and services, HRM departments
invest heavily in training and development programs. These programs focus on enhancing employees'
knowledge of insurance products, underwriting processes, risk assessment techniques, and regulatory
compliance.

3. Performance Management: Performance evaluation in the insurance sector typically involves assessing both
quantitative metrics (such as sales targets and policy retention rates) and qualitative factors (such as customer
satisfaction scores and teamwork). HRM practices include setting clear performance goals, providing regular
feedback, and offering incentives for high performers.

4. Employee Engagement: Given the competitive and fast-paced nature of the insurance industry, employee
engagement is essential for maintaining productivity and reducing turnover. HRM initiatives often include
measures to foster a positive work culture, promote work-life balance, and recognize employees' contributions
through rewards and recognition programs.

5. Regulatory Compliance: HRM departments in the insurance sector are responsible for ensuring compliance
with various regulatory requirements, including licensing and certification for insurance agents, data protection
laws, and anti-discrimination policies. Compliance training and monitoring are integral parts of HRM practices
in the industry.

46
Overall, effective HRM practices are crucial for the success of insurance companies, as they directly impact
employee performance, customer satisfaction, and organizational effectiveness in a highly competitive market.

CHAPTER-6
SUGGESTION &RECOMMENDATION

Here are some suggestions and recommendations for Human Resource Management (HRM) in the insurance
sector:

1.Talent Development Programs: Implement comprehensive training and development programs to enhance
employees' skills in areas such as underwriting, risk assessment, sales techniques, and customer service. Provide
opportunities for continuous learning and professional growth to attract and retain top talent.

2.Succession Planning: Develop robust succession plans to identify and groom future leaders within the
organization. Invest in leadership development initiatives to ensure a pipeline of qualified candidates for key
roles, reducing the impact of turnover and promoting organizational stability.

3.Technology Integration: Embrace technological advancements such as artificial intelligence, data analytics,
and digital platforms to streamline HR processes, improve operational efficiency, and enhance employee
productivity. Provide training and support to help employees adapt to new technologies and leverage them
effectively in their roles.

5. Employee Well-being Programs: Prioritize employee well-being by offering wellness programs, flexible
work arrangements, and resources for mental health support. Recognize the importance of work-life balance and
create a supportive environment where employees feel valued, motivated, and engaged.

6. Performance Management Systems: Implement performance management systems that provide regular
feedback, recognize achievements, and align individual goals with organizational objectives. Use performance
metrics to track progress, identify areas for improvement, and reward high performers effectively.

47
7. Compliance and Ethics Training: Ensure that employees are well-versed in regulatory requirements, ethical
standards, and industry best practices through comprehensive compliance training programs. Foster a culture of
integrity and accountability, where ethical behaviour is consistently reinforced and unethical conduct is not
tolerated.

8. Customer-Centric Approach: Align HRM practices with a customer-centric approach by hiring candidates
with strong interpersonal skills, empathy, and a focus on delivering exceptional customer service. Provide
customer service training and incentivize behaviours that prioritize customer satisfaction and loyalty.

By implementing these suggestions and recommendations, HRM can contribute to the success and sustainability
of insurance companies by attracting and retaining top talent, fostering a positive work culture, and driving
organizational performance in a competitive market.

48