Extract of Research paper on HR in LIC

Source: conference.aimt.edu.in    (Internet)

MANAGING HR CHA

LLENGES IN INSURANCE INDUSTRY: A

STUDY ON

LIFE

INSURANCE

Mrs. Kusum Dubey , Mr. Jay Kumar Pandey

Email id:

dubeykusum@gmail.com &

er.jay11@gmail.com

VII.

DATA COLLECTION

The nature of study is descriptive type.

Researcher has

collected both primary and

secondary data for the

data

analysis.

Primary data

1. Designed Structured questionnaire for data

collection.

2. Interview method.

3. Rating method.

4. Co

-

correlation and percentage method.

Secondary data:

1. Published material.

2. LIC Journals and Magazines.

3. www.bimaplus.com.

4. B

usiness magazines.

5. IRDA website.

DATA ANALYSIS & INTERPRETATION:

Researcher

applies different statistical tool for the

interpretation and

data analysis.

Reasons for exit

% of respondents

1. Employee 0.8.03%

2. Supervisor or line manager 38.15%

3. Compe

nsation & job profile 53.82%

From the above pie chart, it has been depicted

that 54% of

the employee quit the job for getting

higher pay

Package, 38% employees quit due to

unhealthy

interpersonal relationship with their

supervisor or boss and

8% employees

leave for

their own personal reasons.

Based on the survey.

It is found that Insurance sector is

touching 35.2

% attrition in year 2007. Though the salaries are

attractive, but the jobs are highly demanding,

target oriented

and competitive.

The above graph

shows average salary offered to entry

-

level

employees by different insurance companies.

Max new life offered a very competitive and

lucrative salary

after

that HDFC Standard life

insurance then

ICICI Prudential and LIC. The

best compensation policy

helps

in motivating,

attracting and retaining the best employees

which improving organizational effectiveness and

productivity.

Hence due to low package most of

the LIC employees looking

for the private

companies.

Insurance sector offers a wide

employment and ca

reer

opportunities to new

aspirants as well as paying a very

handsome pay

package to the experiences one. The

experiences

employee may get up to Rs. 1000000 lakhs

annually also.

Researcher used a rating method

ranging form 1

-

5 scale,

1indicates higher

rating

and 5 indicates lower rating. Based

on the

questionnaire data has been colleted from the

employees working in LIC. After survey, it is

analyzed that

most of the employees are today

career oriented. Salary is the

secondary priority

then job satisfact

ion after

that interpersonal

relationship with superior or boss and lastly

training and

development programmes conducted

for employee.s better

performance.

Here in this

graph, researcher by using questionnaire and

interview method tries to know the employe

rs

Perspective towards company HR practices &

organization

productivity. LIC employers says

.HR is the

Most important asset for the company

and it has a

significant impact on company.s

overall performance &

productivity. Experts says

that by offering lucra

tive pay,

excellent work

culture, career hike opportunities,

Linking pay

with performance and by providing appropriate

training an Insurance companies can solve the

problem of

attrition to a greater extent. Hence HR

manager should frame

those policies & pr

actices,

which help in accomplishment of

organization

objectives while improving individual growth and

performance.

Based on survey, 78% respondents

says that there is a

positive link between HR &

organizational productivity. But

still 18%

respondents are

disagreeing with this view and

4%

respondents can.t say anything.

VII.

FINDINGS

1. LIC is facing a challenge of rising employee

turnover

rate and cost.

2. Poaching of talented employees by rival

companies.

3. Attractive pay package and fast career growth

help

in employee retention.

4. LIC is still a market leader even after

privatization.

5. The analysis shows that HR practices is

positively

linked with organization productivity

not strongly linked.

6. The major reason for employee quitting is to

avoid

h

ighly demanding and target oriented job.

7. LIC HR manager need to have more focused

and

professional approach in order to compete in

a market.

8. Apart from good salary and career growth, HR

manger

should maintain smooth industrial &

interpersonal relatio

nship

between employer and

employee.

9. The labor turnover rate in LIC is comparatively

low

than those in private insurance companies.

10. LIC is a most trusted brand declared in year

2007.

VIII.

SUGGESTIONS

1. Proper communication within the

organization.

2. By offering attractive and competitive pay to

the

potential workforce.

3. By offering excellent career opportunities

within the

organization.

4. By harmonious Industrial relationship between

employer & employee.

5. By enhancing worker.s

participation in

management.

6. Top management should made efforts for

strengthening HR department.

7. To facilitate healthy work culture in order to

prevent

job dissatisfaction.

8. Proper implementation of stress coping

measures

within the organization like

counseling,

meditation.

9. HR manager should give more attention to

retain star

performer employee.

10. Right recruitment and selection of employees

for

consistent growth of the company.

IX.

CONCLUSION

Insurance industry is growing at a faster pace

after

privatization and globalization. The opening

of private players

poses a serious threat for the

business of LIC. To remain survive

as a market

leader LIC HR manager need to innovate &

restructured its existing policies in order to attract

and retain

compet

ent workforce.
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Dear friends,

The complete text can be accessed on the given internet link above.

Hope someone from the H.R.D department in L.I.C of India bothers to read this informative piece and learn lessons from it! 
                                                                                Priya