MINOR PROJECT ONRecruitment Process and Customer Satisfaction leads to Financial Performance
INTRODUCTION• Bajaj Allianz Life Insurance Co. Ltd is very well known Insurance Company in Pune.• In India it is the largest insurer in the world, had joined hands with famous Bajaj Auto one of the trusted name in automobiles.• The project mainly focus on three important aspects of the company1) Recruitment Process2) Customer Satisfaction3) Financial Performance
Company profile• Bajaj Allianz Life insurance Company Limited is a joint venture between Allianz AG of Germany and Bajaj Auto Limited.• Bajaj Allianz Life Insurance Company was incorporated on 12th March 2001.• The company received the Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3) NO116 on 3rd August 2001 to conduct Life Insurance business in India.
Core value• Understanding the customer s needs.• Meeting the customer s requirement.• Ensuring optimal performance at lowest cost.• Commitment to excellence.
Need for the study• Any organization whether business or otherwise requires number of resources for its effective and efficient performance.The need for the study is to analyze the:• Recruitment process – how the employees are benefitted• Customer Satisfaction – how the company is effective in its marketing & service• Financial Performance – how the company is managing its financial resources and planning investments and fixing premiums
objectivesTo understand:• Human Resources tools used in handling the Recruitment process.• To have exposure of the recruitment process.• How effective the computer system or new technology used in the recruitment process system.• How the marketing department is working and taking steps for providing better service to the customers.• Methods applying by the marketing department to promote their products.
• To analyze the market share of the company and determine the problems if any and put own suggestions.• To analyze various past financial records such as Income and Financial statements to determine the financial position, working capital requirement, analytical analysis and profitability analysis.• The overall performance of the company and to understand the claim / reimbursement process of the company.
COLLECTION OF DATAPRIMARY DATA SECONDARY USING DATAQUESTIONNAIRE CUSTOMER SATISFACTION (SAMPLE SIZE 100)RECRUITMENT PROCESS LAST FIVE YEARS(SAMPLE SIZE 10) INCOME STATEMENT AND BALANCE SHEET
• Recruitment Process Manpower Plan Position Description Manpower Requisition Bank Application Preliminary Interview Personal Test: a) Intelligence Test Application Form b) Aptitude Test c) Personality Test Employment Interview Selection Medical Examination Appointment Letter
Recruitment satisfaction Recruitment System454035302520 Response15 Percentage10 50 Not at all Satisfied totally Good Excellent satisfied
Organization Grading StructureDescription LevelDepartment heads – leadership L5roleDepartment heads / regional L4heads / sales headManagers / functional heads L3 A BAssistant Manager – L2 ASupervisory role BSupport Staff L1 A B
Market Share Kotak Mahindra OM Others Tata AIG Metlife Aviva Life 4% 4% 3% Max New York Life 3% 2% ING Vyasa 6% 2% HDFC Standard 8% ICICI Prudential Birla Sunlife 22% 8% Reliance Life 10% SBI Life Bajaj Allianz 15% 13% Market Share of Private Players
Post Office SavingsSecurities 14% 6% Life Insurance 32% Mutual Funds 12% Fixed Deposit 36% 100 Very Low Average Very High 90 80 70 60 50 40 30 20 10 0 Brand Image Excellent Friend / Marketing Impress by Desire to try of the past record relatives People Ads & out a new Company have bought insisted to Promotion company buy
Life Insurance policy Tata AIG Insurance Company Kotak Mahindra Old Mutual Life… Max New York Life Insurance… HDFC Standard Life Insurance… Reliance Life Insurance Company Birla Sun Life Insurance CompanyBajaj Allianz Life Insurance Company ICICI Prudential Life Insurance… SBI Life Insurance Company Life Insurance Corporation Of India Respondents (In Percentage) 0 10 20 30 40
Profit & Loss Analysis Profit After Tax 14,000,000 Profit After Tax 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 -2,000,000 -4,000,000
Observation & findings• The company has clarity of the recruitment process.• The recruitment process is centralized in the company.• The department head are not considered most of the time during the interview. The role of the head was to inform about the vacancy to HR.• Most of the time the criteria of selection are on the basis of the Knowledge + Experience. This is good for the company.• The company provides a good basis for the FRESHER, which is a positive side for both the concern.
• Personal interview is more beneficial.• Customers investing money in Life Insurance mainly look for the following benefits: Risk coverage Family protection Tax benefits To gain maximum returns in the future.• Majority of the customers mainly get information about Life Insurance through Agents and Advisor of the company
• Majority of customers trust those Insurance Companies which has excellent past records and has brand image such as Life Insurance Corporation of India, ICICI Prudential, and Bajaj Allianz.• The caption of Bajaj Allianz “we learn from you and design Insurance solutions that help you lead a worry free life”, make every person to belief on the products of Bajaj Allianz and hence Bajaj Allianz ranked no. 1 among all the private players in the market.• Bajaj Allianz also part of various NGO and do various charity such as Blood Donation Camp, distribution of clothes and books.
• The premium collection is increased from 11 % during 2006-07 to 25 % during 2009-10.• It is find that the investment income of the company has increases rapidly throughout the last five years, it is only 2 % investment income receive during the year 2006-07 and increases to 67 % during 2009-10.• Through analyzing the Profit & Loss Account it is observed that the company suffers continuous loss from the last five years starting from 2003-04, the loss continuous still 2008-09, but finally with the efficient working of finance department the company start earning profit since 2009-10.
suggestions• The recruitment process in Bajaj Allianz should be decentralized.• The middle level employees should have knowledge of the recruitment process and the non HR employees should be given a HR manual.• The selected candidates should be given training at their workplace by the trainer of the department.• Bajaj Allianz should try to build trust among the public by making people aware.• Bajaj Allianz should try to provide attractive returns on investments in future.
• Various campaign for awareness program regarding risk coverage, family protection should be implemented.• The Agents/Advisors before selling a product must analyze the need and requirement of each and every prospect.• The company must look for better way to invest money in the market.• The operating cost should be control and other overheads like fixed and variable overheads must minimized in order to earn more profits.• The company should invest money in those market were quick returns is possible at higher rate, this can be achieved by performing more research.
limitations• The questionnaire contained in the close-ended questions.• The accuracy of indicators given by the respondents may not be consider adequate.• Since the survey was limited to 100 customers it is rather difficult to give a precise conclusion.• A much more detailed analysis could be done had there been more time spent for data collection.• The survey may not give the whole scenario of Indian market.• Subjects/investors/respondents were not co-operative on their approach.
BibliographyBooks Human Resource Management – Anjali Ghanekar HRD Manual of Bajaj AllianzWebsites www.bajajallianz.com www.irda.gov.in