Professional Documents
Culture Documents
ON
ORGANIZATIONAL STUDY IN
This is to certify that the organization study on Birla Sun Life Insurance,
Bangalore has been prepared by Mr. Rama Krishna Raju T bearing the
registration no. 06XQCM6101 under the guidance and supervision of Mr.
Rudra Murthy, Professor, MPBIM, Bangalore.
This is to certify that the organization study on Birla Sun Life Insurance,
Bangalore, prepared by Mr. Rama Krishna Raju T bearing the
registration no.06XQCM6101 is a bonafide work done, carried under my
guidance and supervision during the academic year 2006-08 in partial
requirement for the award of MBA degree by Bangalore University. To the
best of my knowledge this report has not formed the basis for the award of
any other degree or diploma.
This is to certify that Mr. Rama Krishna Raju T has completed his
project, under my guidance during Jul& Aug 2007on the topic titled
“Organization study”
His Conduct was Good during this period.
Place: BANGALORE
Date: Signature
Name
Designation
of the guide
Office Seal
I also declare that this report is a result of my own effort and has not been
submitted earlier for the award of any degree or diploma of Bangalore
University or any other University.
At the outset, I would like to express my deep sense of gratitude and sincere
thanks to Dr. Mallavali, Principal, M.P.BIRLA INSTITUTE OF MANAGEMENT,
Bangalore, for providing an opportunity to discover the corporate world, from a
close perspective.
Prof. Rudra Murthy, my professor and internal guide for this project to whom I
am deeply grateful for his constant support and guidance without which it would
not have been possible for me to complete this project in time.
I would also like to express my heartfelt wishes to BSLI, for making these 2
months a stepping-stone for my career.
I convey my gratitude to all the staff members of Marketing Division for their
kind cooperation through out my project.
The company chosen was Birla Sun Life Insurance ( BSLI) . The reason
behind this was to understand the expertise it has developed and skills it has
owned, especially in the field of marketing its products as it is the booming
industries in India.
Learning really takes place outside the classroom. I stand a witness to this
statement. The in sight of knowledge that I acquired in the two months of
internship with BSLI was quite impressive. The opportunity I received to
apply my knowledge and skills in the organization gave me a practical view
point to the whole system of learning.
It was a very good experience for me to work during this tenure. I am glad
that I have learnt so much in such little time. It has boosted my confidence
and has raised my spirits. I can confidently say that my knowledge has
improved in a very short time I would like to thank the entire Marketing
department at the BSLI for their constant support.
2) Endowment:
Endowment policies cover the risk for a specified period
at the end of which the sum assured is paid back to the
policyholder along with the bonus accumulated during
3) Money back:
Unlike endowment plans, in money back policies, the
policyholder gets periodic survival benefits during the
term of the policy and a lump sum amount on surviving
its term. In the event of death during the term of the
policy, the beneficiary gets the full sum assured,
without any deductions for the amounts paid till date,
and no further premiums are required to be paid.
Vision:
“To be provider of financial security to individuals and
corporate”.
Mission:
To be the first preference of our customers as a leading
integrated insurance provider of Insurance solutions
superior value creation and technology.
Quality Policy:
Birla Sun Life has put in carefully designed strategies to
move to the leading position in the life insurance
industry through product innovation, customer focus,
and cutting edge technology.
efficient returns.
b) Tax free lump sum pay-outs, to take care of recurring
needs.
Areas of Operation:
Ownership pattern:
The Aditya Birla group holds 74% of the equity in
Birla Sun Life Insurance while the Sun Life group holds
the balance 26%. Both the companies are committed to
enhance the capital of the plan projections.
Competitors’ information:
The company faces two types of competitors:
• Direct Competitors
• Indirect Competitors
Infrastructure Facilities :
1. All branches are computerized and linked in a wide
area network
2. There is inter branch connectivity a well as
connectivity with the head office
3. The main back and policy administration is a
Rs.6000 based COBOL-java system running on AIX with
DB2 database and a HTML front end
4. The sales illustration system is an interface system
with Java classes. The accounting system used is Sun
Accounting system, which interfaces with the Rs.6000
5. Birla Sun Life would provide Sales Illustration
Systems to every distributor and it can be loaded on
laptops also.
6. BSLI would be harnessing the IT advantage for
improving the effectiveness and efficiency of its
distribution channels.
VP VP VP CHANNEL
MKT DSF CFO GROUP SALES
REGIONA
L
MANAGE BRANCH BRANCH BRANCH
R MANAGER MANAGER MANAGER
APPLICATION
ADDITION OF RIDERS
REQUIREMENT
ADDITION OF RIDERS
CHEQUE DISHONOUR
DISPATCH
REFUND
CLIENT SERVICES ID
COMMUNICATION CELL
2) Addition of riders:
3) Requirement:
5) Dispatch:
When the underwriter is fully satisfied with the
customer, he decides that he could be given insurance
cover. Then the policy document stating that client is
insured by Sun Life is sent to the clients mailing
address. This is termed as dispatch.
6) Refund:
8) Communication Cell:
ACTUARY:
An efficient and successful life insurance business
is dependent on key functions of risk management. Our
team of professional actuaries is among the best in the
industry and is dedicated to create sound risk
assessment and pricing structure.
CLIENT SERVICING:
It services an existing base of over 1 lakh
policyholders which is constantly growing at a
compounding rate. The team is continuously evolving
efficiency levels n order to meet its committed
standards.
PRODUCT DEVELOPMENT:
A team dedicated to conceptualizing, product
features, set up the implementation and lead it to the
product launch with the active support of the other core
functions.
HUMAN RESOURCE:
In an ever growing and expanding company the key
role of recruiting and retaining the right talent and
efficient performance management system is a crucial
differentiator between a leader and any other company.
INFORMATION TECHNOLOGY:
BSLI boasts of the most advanced software
technology in the Life Insurance industry. Being a unit
linked product offering with customization, the
technology and back- end processing is done on the
universal platform on the world class ingenious system.
With this technology, customers can even track their
policy and fund details on the internet.
INVESTMENT:
The unit linked products offer the flexibility of
choosing from various investment options. An efficient
investment strategy within the frame work of the IRDA
guidelines is a crucial factor contributing to the success
of unit linked products in the market place.
Skill:
Off the job training:
In Insurance industry it’s the customer who is
supreme and company’s revenue would directly depend
on it. So it requires the Direct Sales force of the
company to have good communication skills, since they
directly interact with the customer. To cater to this need
the organization provides for exclusive communication
skill improvement training from reputed organizations so
that their Direct Sales Force would interact in a better
way with the customers and emerge successful in
getting business from him.
Style:
Top down Participative Decision Making:
In Birla Sun Life the decision regarding products,
company policies etc. is taken by the top level
management which will have to be followed by the low
level management namely branch mangers, agency
managers and advisors in all the branches. The
decision could be taken at the start of every financial
A. Product Innovation:
D . P r i c i n g s t r a t e g y:
Systems in BSLI:
Inventory control System in BSLI:
From the head quarters situated at Mumbai, to
every branch in India, inventory like product brochures,
applications, etc., are dispatched. At the local level a
count of all these is maintained to minimize wastage.
Merit Rating System in BSLI:
For each individual in the organization there is a
particular team in Human Resource Department which
monitors every individual performance on certain
parameters. Based on that the individual is promoted or
demoted.
Staff in BSLI:
ACTUARY:
An efficient and successful life insurance business
is dependent on key functions of risk management.
Out team of professional actuaries is among the
best in the industry and is dedicated to create sound
risk assessment and pricing structure.
UNDERWRITING:
The underwriting team performs the key function of
assessing the risk on world class underwriting
standards. The team along with a nationwide panel of
Medical Evidence Providers acts as the backbone of the
company.
CLIENT SERVICING:
It services an existing base of over 10 lakh
policyholders which is constantly growing at a
compounding rate.
PRODUCT DEVELOPMENT:
A team dedicated to conceptualizing, product
features, set up the implementation and lead it to the
HUMAN RESOURCE:
In an ever growing and expanding company the key
role of recruiting and retaining the right talent and
efficient performance management system is a crucial
differentiator between a leader and any other company.
Strengths:
Weaknesses:
1) In this industry customer is supreme and revenues
are directly dependent on the number of customers BSLI
can get insured. This requires BSLI to have very
effective advertising strategy so as to popularize their
products among the masses. BSLI is found lacking in
this domain where even though their policies are as
powerful as any other competitors, their advertising
strategy is not at all effective.
Opportunities:
Threats:
1) Directly the company shall have to face the onslaught
of LIC.The large customer base, accumulated funds,
well-established marketing machinery etc.
2) This is just half of the story; there would be the
recently “off – the- block insurers” who would be coming
out with a variety of product variations. Many of them
with parallel financial activities and similar products.
Just to name few: ICICI – Prudential, HDFC-Standard
Life, TATA-AIG OM-Kotak, Max-New York, SBI Life, etc.
Achievements:
1) Recruitment policies:
The recruitment is carried out from both external &
internal are:
1. Present employees
2. Employee referrals
3. Former employees.
External Sources:
The following external sources are:
1. Campus recruitment
2. Print media
3. Electronic media
2) Selection
Selection is carried out in three major stages:
1. Preliminary interview
2. Selection test
3. HR Interview
4) SALARY
Attractive salaries and other extra incentives based on
their performance.
5) Reimbursement policy
Reimbursing the telephone and , electricity bills etc.
6) Leave policy
Giving leaves in certain occasions and even tour offers
to employees to foster interest in them for organization.
Recruitment process
Right people at the right place at the right time plays a
major role in the recruitment process in any
organization. Because of extreme competition in today’s
world, organizations need to have a very efficient and
effective recruitment process, which saves time and in
turn results in reducing the cost of recruitment process.
Internal recruitment
Internal recruitment seeks, applicants for the positions
those who are currently employed. Internal sources
include present employees, employee referrals, former
employees and former applicants.
There are three major advantages of internal
recruitment.
1 Firstly, it is less costly that external recruitment.
2 Secondly, organizations typically have a better
knowledge of the internal candidate’s .skills and
abilities than the ones acquired through external
recruiting.
3 Thirdly, an organization policy of promoting from
within can enhance employee’s morale, organizational
commitment and job satisfaction. Good performance is
rewarded
Orientation
Orientation is also called induction, is designed to
provide a new employee with the information he or she
needs to function comfortably and efficiently in the
organization.
Purpose of orientation
Organizations are often known to spend few weeks or
even months on orientation programme the idea is to
make the employee feel at home. In the new
environment it is well known fact that employees feel
anxious on entering in organization, induction is a
method to reduce this anxiety.
HR PRINCIPLES
The organization believes that development of employee
is in its own interest. The organization will provide
opportunities and conditions for the development and
optimization of human resources.
1. The management is willing to invest adequate time
and resources for the development of the employees
and personally participate in the development.
2. Managers have concern for growth of subordinates.
3. Employees are willing to avail of given opportunities
for growth and receive such help from the managers as
may be necessary for this development and improving
performance.
Performance Appraisal
Performance Appraisal data forms basis for decisions
for developing the potential employee for higher. Level
jobs and is basis for feedback and counseling.
Performance Appraisal data indicates the job training
needs of each individual the main appraisal method
used by Birla Sun Life is 360 degree
There are two major ways of performance appraisal
1) Past-oriented methods
2) Future-oriented methods
Each group has several techniques. Some of them are
explained in the following Section.
The term used to describe a performance rating that
focuses on specific behaviors or sets as indicators of
effective or ineffective performance, rather than on
System of appraisal
Employee benefits:
Employee benefits and services include any benefits
that an employee receives in addition to direct
remuneration. Employee benefits embrace a broad
range of benefits and services that employees receive
as a part of their local compensation package. Pay and
directly compensations it is based on critical job factors
and performance. Benefits and services, however, are
indirect compensation because they are usually
intended as a condition of employment and or not
Rewards
Performance Data is used for rewards and reward data
are entered for development
Grievance
Grievance procedure is one of the techniques of
resolving disputes. All labor agreements contain some
form of grievance procedure. And if people follow it
strictly any dispute can be resolved very easily. Terms
which give rise to grievances is:
1) Violation of law
2) Violation of company rules
3) Violation of health and safety measures
4) A change in working condition or past company
practices
5) Violation of the intent of the parties as stipulated
during contract negotiations.
There are few other techniques available as collective
bargaining and code of discipline.
PERFORMANCE APPRAISAL
Performance appraisal may be defined as a structured
formal interaction between a subordinate and
supervisor, that usually takes the form of a periodic
interview (annual or semi-annual), in which the work
performance of the subordinate is examined and
discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and
Basic Purposes
Effective performance appraisal systems contain two
basic systems operating in conjunction: an evaluation
system and a feedback system.
The main aim of the evaluation system is to identify the
performance gap (if any).
This gap is the shortfall that occurs when performance
does not meet the standard set by the organization as
acceptable. The main aim of the feedback system is to
inform the employee about the quality of his or her
performance.
Employee Viewpoint:
From the employee viewpoint, the purpose of
performance appraisal is four-fold:
(1) Tell me what you want me to do
(2) Tell me how well I have done it
(3) Help me improve my performance
(4) Reward me for doing well.
Organizational Viewpoint:
From the organization's viewpoint, one of the most
important reasons for having a system of performance
appraisal is to establish and uphold the principle of
accountability.
For decades it has been known to researchers that one
of the chief causes of organizational failure is "non-
alignment of responsibility and accountability."
Nonalignment occurs where employees are given
responsibilities and duties, but are not held accountable
Problems of rating
Performance appraisals are subject to a wide variety of
inaccuracies and biases referred to as .rating errors..
These errors occur in the rater’s observations,
judgments, and information processing, and can
seriously affect assessment
Results: The most common rating errors are
1) Leniency or severity
2) Central tendency
W h a t s h o u l d b e r a t e d?
One of the steps in designing an appraisal programme
is to determine the evaluation criteria. It is obvious that
the criteria should be related to the job. The six criteria
for assessing performance are:
1) Quality
2) Quantity
3) Timeliness
4) Cost effectiveness
5) Need for supervision
6) Interpersonal impact
Methods of Appraisals
The last to be addressed in the process of designing an
appraisal programme is to determine method(s) of
evaluation. Numerous methods have been devised to
measure the quantity and quality of employee’s job
performance.
Forced Distribution
The term used to describe an appraisal system similar
to grading on a curve.
The evaluators are asked to rate employees in some
fixed distribution of categories. One way to do this is to
type the name of each employee on a card and ask the
evaluators to sort the cards into piles corresponding to
rating.
Ranking
The term ranking has been used to describe an
alternative method of performance appraisal where the
supervisor has been asked to order his or her
employees in terms of performance from highest to
lowest.
Weighted Checklist
The term used to describe a performance appraisal
method where supervisors or personnel specialists
familiar with the jobs being evaluated prepared a large
list of descriptive statements about effective and
ineffective behavior on jobs.