Declaration

I, XYZ hereby declare that the Project Report entitled “Study of HR problems with

special reference to employee retention” is an original piece of work done by me during

my Summer Training at TATA AIG Life Insurance Company Ltd., Luckow from 17 th

April 10 to August 10. The report has not been submitted anywhere earlier in any

manner.

XYZ

Enrol. No.5NB7213
 Acknowledgement

The successful completion of OJT and Project Work would not have

been done without the support and guidance of a number of persons.

But, at the outset, I am very thankful to Mr. Nilanjan Chatterjee, Branch

Manager at TATA AIG Life Insurance Co. Ltd, Lucknow branch for giving us

permission to undergo Summer Internship Program there. I would remain indebted to

him.

I thank my Company Guide Mr. Manish Gupta for his guidance,

encouragement and contribution of time whenever it was required. His guidance has

undoubtedly helped me in the achievement of my target.

I thank my Faculty Guide Mr. Praveen Srivastava for his valuable

suggestions throughout the SIP. I have always asked for his help towards the

performance of my OJT and in Project Work. His concern for the work that I was

undergoing in my company worked as a motivating actor for me.

I would like to extend my gratitude towards all the customers who have

taken policy from me and even more for trusting me. My thankfulness goes to all those

persons as well whom I have met in this course of selling policies. I have gained much

experience during interaction with them ad also received some valuable suggestions

from some of them on how to work..

Last but by no means the least, I would like to convey my special

thanks to all the faculty members of Sherwood College for giving me the opportunity to
work on this project. I also thank the management of SCM Lucknow, management for

providing sufficient computer lab and library facilities.

Project
 Table of Contents

Abstract/Preface
Chapter I : Introduction
Objectives
Limitations
Methodology
Chapter II : Industry Profile
Introduction to Insurance
History
Types of Insurance
Classification of Insurance Companies
Insurance Companies in India
Insurance Marketing
Advantages of Insurance
Criticisms of Insurance Industry
Chapter III : Company Profile
Brief Overview of TATA AIG
History
Management
Clients of TATA AIG
Customers of TATA AIG
Recent Stories
Chapter IV : Analysis of the Survey Conducted of Employees
Discussions
Recommendations
References
Annexure :
Questionnaire for the satisfaction level of employees in
the organization
 List of Tables

I. Analysis of satisfaction level of employees in TATA AIG

Table 1 Working environment in TATA AIG

Table 2 Relationship with supervisors

Table 3 Factors considered important while looking for a job

Table 4 Reasons for joining TATA AIG

Table 5 Satisfaction Level while working in TATA AIG

Table 6 Employees who would like to switch to other jobs within same

industry

Table 7 Reasons for employees to switch to other jobs within same

industry

Table 8 Employees who would like to switch to other industry in future

Table 9 Reasons for switching to other industry

Table 10 Motivational factors considered in order of importance

Table 11 Motivational factors present in TATA AIG

 Abstract

Employee Retention is a biggest challenge for most HR managers today. After

employees go home every night, it is not certain how many of them will be back

next morning. Building a stable workforce takes considerably more than just

throwing money at people or giving them use of a fancy car. There’s more involved

than just a lot of aggressive recruiting or strong attention to retention. To achieve

workforce stability, with all its financial and operational advantages, employers

must invest energy in resources in a range of discrete strategies. When woven

together, these various aspects create a comprehensive model for building and

maintaining that coveted condition of a solid, stable workforce that drives more

dollars to the bottom line.

TATA AIG is a rising organization in insurance sector. For the last 125 years,

TATA is known for maintaining a large workforce. This organization considers

human resource as assets. TATA in collaboration with AIG came to India in the

year 2001. The number of workers under this organization is quiet large. But the

problem with this organization and with Lucknow branch in particular is that of

retaining its employees. TATA AIGs Lucknow branch is facing attrition problems

and is in an ongoing process of removing those attrition problems.

The present study “Study of HR problems with special reference to employee

retention” is an attempt to analyze the satisfaction level of employees while

working with this organization. It aims to develop a complete employee retention

program for the organization.

Chapter I

 Objective

 Limitations

 Methodology
Objective

This project report has been undertaken in order to accomplish certain

underlying objectives:

i) Proper understanding of the Project Title “Employee Retention” and

“Employee Attrition”.

ii) Proper understanding of the HR problem going on in TATA AIG life

Insurance Co. Ltd., Lucknow Branch.

iii) Conduct a survey on a sample selected from the entire population of

employees in Lucknow branch of TATA AIG.

iv) Analyze the result of the survey conducted and propose recommendations.
 Limitations

There have been certain limitations in the project understudy which

makes its study restricted. These are:

i) The sample size is limited. Therefore the study is restricted from a macro

perspective.

ii) Getting accurate responses from the respondents was difficult as the

questionnaire also included questions regarding the superior subordinate

relationship which most of them were hesitant to disclose.

iii) Some respondents refused to respond for the first time they were

approached because of their busy schedule. So, they had to be recontacted.

iv) The survey was tedious and time consuming.

 Methodology

For covering the broad topic of the project assigned, a culmination of

several tasks and steps was necessary so that the study could result into suggesting a

solution that could be of use to the organization. The methodology that has been

adopted for this project work can be described as under:

a. Defining the problem and objective: The objective states what

information is needed to solve the problem. The objective of the

survey was to find the satisfaction level of the employees in the

organization so that the reasons of attrition could be found out and a

well structured retention program could be prepared.

b. Preparation of questionnaire: After the first step, for achieving

the research objective, the research instrument that has been used is

the questionnaire. The questionnaire contains both open ended and

closed ended questions.

c. Collection and Sources of data: The survey required two kinds

of data, i.e., primary data and secondary data. As already mentioned,

for gathering primary data, a well structured questionnaire was

prepared. Secondary data was collected from various

journals, books and web sites.

Sampling plan:

Sampling units: The respondents here are both employees and

advisors. The entire population of employees have been taken as

sample. Advisors have been selected randomly.

Sample size: Survey has been conducted in the office for 100

employees and advisors.

d. Analyze the collected information: This involved converting

raw data into useful information. It involved tabulation of data and

then converting them to percentages in order to show them through

diagrams.

e. Report research findings: This phase marked the culmination of

the effort that has been done towards the collection of data. This

report with the findings is a formal written document. The findings

helped in getting the reasons for the HR problems and the secondary

data reflected the attrition rates which helped in proposing

recommendations.
 Chapter II

Industry Profile

 Introduction to Insurance

 History

 Types of Insurance

 Classification of Insurance Companies

 Insurance Companies in India

 Insurance Marketing

 Advantages of Insurance

 Criticisms of Insurance Industry

INDUSTRY PROFILE

Insurance Industry

Introduction

The insurance industry provides protection against financial losses resulting from a

variety of perils. By purchasing insurance policies, individuals and businesses can

receive reimbursement for losses due to car accidents, theft of property, and fire and

storm damage; medical expenses; and loss of income due to disability or death.

The insurance industry consists mainly of insurance carriers (or insurers) and insurance

agencies and brokerages. In general, insurance carriers are large companies that

provide insurance and assume the risks covered by the policy. Insurance agencies and

brokerages sell insurance policies for the carriers. While some of these establishments

are directly affiliated with a particular insurer and sell only that carrier’s policies, many

are independent and are thus free to market the policies of a variety of insurance

carriers. In addition to supporting these two primary components, the insurance

industry includes establishments that provide other insurance-related services, such as

claims adjustment or third-party administration of insurance and pension funds.

Insurance carriers assume the risk associated with annuities and insurance policies and

assign premiums to be paid for the policies. In the policy, the carrier states the length

and conditions of the agreement, exactly which losses it will provide compensation for,

and how much will be awarded. The premium charged for the policy is based primarily

on the amount to be awarded in case of loss, as well as the likelihood that the insurance

carrier will actually have to pay. In order to be able to compensate policyholders for

their losses, insurance companies invest the money they receive in premiums, building
up a portfolio of financial assets and income-producing real estate which can then be

used to pay off any future claims that may be brought. There are two basic types of

insurance carriers: direct and reinsurance. Direct carriers are responsible for the initial

underwriting of insurance policies and annuities, while reinsurance carriers assume all

or part of the risk associated with the existing insurance policies originally underwritten

by other insurance carriers.

Some insurance policies cover groups of people, ranging from a few to thousands of

individuals. These policies usually are issued to employers for the benefit of their

employees or to unions, professional associations, or other membership organizations

for the benefit of their members. Among the most common policies of this nature are

group life and health plans. Insurance carriers also underwrite a variety of specialized

types of insurance, such as real-estate title insurance, employee surety and fidelity

bonding, and medical malpractice insurance.

 History

Insurance has been an institution of human society for thousands of years, having been

practiced by Babylonian traders as long ago as the 2nd millennium BCE. Eventually it

was given legal mention in the Code of Hammurabi, and practiced by early

Mediterranean sailing merchants. The Greeks and Romans had "benevolent societies"

which acted to care for the families and funeral expenses of members upon death.

Guilds in the middle ages served a similar purpose. Insurance became much more

sophisticated in post-Renaissance Europe, and specialized varieties developed. In

America, Benjamin Franklin helped to popularize and make standard the practice of

insurance, particularly against fire. The 19th century saw a rise in the government

regulation of insurance, and the 20th century saw further specialization and, in the

United States, a bit of deregulation that allowed other financial institutions, such as

banks, to offer insurance. The ever-increasing ability of science to predict catastrophes

of any measure or variety continues to affect the way insurance is conducted.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil. All the insurance companies established during that

period were brought up with the purpose of looking after the needs of European

community and Indian natives were not being insured by these companies. However,

later with the efforts of eminent people like Babu Muttylal Seal, the foreign life

insurance companies started insuring Indian lives. But Indian lives were being treated

as sub-standard lives and heavy extra premiums were being charged on them. Bombay

Mutual Life Assurance Society heralded the birth of first Indian life insurance company
in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise

with highly patriotic motives, insurance companies came into existence to carry the

message of insurance and social security through insurance to various sectors of

society. Bharat Insurance Company (1896) was also one of such companies inspired by

nationalism. The United India in Madras, National Indian and National Insurance in

Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907,

Hindustan Co-operative Insurance Company took its birth in one of the rooms of the

Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian

Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of

the companies established during the same period. Prior to 1912 India had no

legislation to regulate insurance business. In the year 1912, the Life Insurance

Companies Act, and the Provident Fund Act were passed. The Life Insurance

Companies Act, 1912 made it necessary that the premium rate tables and periodical

valuations of companies should be certified by an actuary. But the Act discriminated

between foreign and Indian companies on many accounts, putting the Indian companies

at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business.

From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176

companies with total business-in-force as Rs.298 crore in 1938. During the

mushrooming of insurance companies many financially unsound concerns were also

floated which failed miserably. The Insurance Act 1938 was the first legislation

governing not only life insurance but also non-life insurance to provide strict state

control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a bill

to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.

However, it was much later on the 19th of January, 1956, that life insurance in India

was nationalized. About 154 Indian insurance companies, 16 non-Indian companies

and 75 provident were operating in India at the time of nationalization. Nationalization

was accomplished in two stages; initially the management of the companies was taken

over by means of an Ordinance, and later, the ownership too by means of a

comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act

on the 19th of June 1956, and the Life Insurance Corporation of India was created on

1st September, 1956, with the objective of spreading life insurance much more widely

and in particular to the rural areas with a view to reach all insurable persons in the

country, providing them adequate financial cover at a reasonable cost.

 Type of Insurance

There are a number of different types of insurance:

• Automobile insurance, also known as auto insurance, car insurance and in the

UK as motor insurance, is probably the most common form of insurance and

may cover both legal liability claims against the driver and loss of or damage to

the vehicle itself.

• Property insurance provides protection against risks to property, such as fire,

theft or weather damage. This includes specialized forms of insurance such as

fire insurance, flood insurance, earthquake insurance, home insurance or boiler

insurance.

• Casualty insurance insures against accidents, not necessarily tied to any specific

piece of property.

• Liability insurance covers legal claims against the insured. For example, a

doctor may purchase insurance to cover any legal claims against him if he were

to make a mistake in treating a patient.

• Financial loss insurance protects individuals and companies against various

financial risks. For example, a business might purchase cover to protect it from

loss of sales if a fire in a factory prevented it from carrying out its business for a

time. Insurance might also cover failure of a creditor to pay money it owes to

the insured. Fidelity bonds and surety bonds are included in this category.
• Title insurance provides a guarantee on research done on public records

affecting title to real property, usually in conjunction with a search done at the

time of a real estate transaction, such as a sale, or a mortgage.

• Health insurance covers medical bills incurred because of sickness or accidents.

• Life insurance provides a benefit to a decedent's family or other designated

beneficiary, usually to make up for their loss of his or her income.

• Annuities provide a stream of payments and are generally classified as

insurance because they are issued by insurance companies and regulated as

insurance. Annuities and pensions that pay a benefit for life are sometimes

regarded as insurance against the possibility that a retiree will outlive his or her

financial resources. In that sense, they are the opposite of life insurance.

• Credit insurance pays some or all of a loan back when certain things happen to

the borrower like unemployment, disability, or death.

• Terrorism insurance

• Political risk insurance can be taken out by businesses with operations in

countries in which there is a risk that revolution or other political conditions

will result in a loss

 Classification of Insurance Companies

Insurance companies may be classified as

• Life insurance companies, who sell life insurance, annuities and pensions

products.

• Non-life or general insurance companies, who sell other types of insurance.

In most countries, life and non-life insurers are subject to different regulations, tax and

accounting rules. The main reason for the distinction between the two types of

company is that life business is very long term in nature - coverage for life assurance or

a pension can cover risks over many decades. By contrast, non-life insurance cover

usually covers shorter periods, such as one year.

Companies may sell both life and non life insurance, in which case they are sometimes

known as composite insurance companies.

Insurance companies are also often classified as either mutual or stock companies. This

is more of a traditional distinction as true mutual companies are becoming rare. Mutual

companies are owned by the policyholders, while stockholders, (who may or may not

own policies) own stock insurance companies.

Reinsurance companies sell insurance cover to other insurance companies. This helps

insurance companies to spread their risks, and protects them from very large losses.

The reinsurance market is dominated by a few very large companies, with huge

reserves.
 Insurance companies in India

IRDA has so far granted registration to 12 private life insurance companies and 9

general insurance companies. If the existing public sector insurance companies are

included, there are currently 13 insurance companies in the life side and 13 companies

operating in general insurance business. General Insurance Corporation has been

approved as the "Indian reinsurer" for underwriting only reinsurance business.

Particulars of the life insurance companies and general insurance companies including

their web address is given below:

LIFE INSURERS

Public Sector

Life Insurance Corporation of India

Private Sector

Allianz Bajaj Life Insurance Company Limited

Birla Sun-Life Insurance Company Limited

HDFC Standard Life Insurance Co. Limited

ICICI Prudential Life Insurance Co. Limited

ING Vysya Life Insurance Company Limited

Max New York Life Insurance Co. Limited

MetLife Insurance Company Limited

Om Kotak Mahindra Life Insurance Co. Ltd.

SBI Life Insurance Company Limited

TATA AIG Life Insurance Company Limited

AMP Sanmar Assurance Company Limited

Dabur CGU Life Insurance Co. Pvt. Limited

GENERAL INSURERS

Public Sector

National Insurance Company Limited

New India Assurance Company Limited

Oriental Insurance Company Limited

United India Insurance Company Limited

Private Sector

Bajaj Allianz General Insurance Co. Limited

ICICI Lombard General Insurance Co. Ltd.

IFFCO-Tokio General Insurance Co. Ltd.

Reliance General Insurance Co. Limited

Royal Sundaram Alliance Insurance Co. Ltd.

TATA AIG General Insurance Co. Limited

Cholamandalam General Insurance Co. Ltd.

Export Credit Guarantee Corporation

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India

 Insurance Marketing

Insurance marketing involves specific techniques used by insurance

agents to increase the number of clients they serve to grow their businesses.

Successful Insurance Marketing Techniques

In order to be a successful insurance agent, there are a number of steps one needs to

take, including:

• Identifying the market to be tapped

• Knowing one's product and competitors

• Educating one's audience by giving them informative articles, seminars, and

newsletters

• Building relationships to create long-term stability.

Generating good leads is probably the most difficult aspect of insurance marketing.

Some people in the field recommend purchasing pre-screened leads to maximize

results. It is also recommended that agents conduct surveys and polls and publicize

their findings to establish themselves as authoritative figures in the field. Working

with other professionals by trading leads in the field is an excellent ways to

generate business. Networking groups and participation in trade shows are also

excellent marketing tools. Placing ads online, keeping one's database current, and

word of mouth are also beneficial.

Aggressive Marketing Campaigns

Some agents may consider aggressive advertising campaigns that may include

television and newspaper advertising. Before embarking on what could be an

expensive campaign, it is well to ask what product one is marketing, to whom one

is marketing, and what type of clients one is seeking. In other words, one needs to

think carefully and plan before embarking on such marketing. Direct mail can be

effective if done properly. Obtaining the right markets is crucial – getting the right

geographic and demographic information is necessary – such as targeting specific

zip codes, and getting accurate names, rather than simply mailing to “current

resident.” Developing quality effective promotional pieces is also important for a

strong marketing campaign.

Insurance Marketing Resources

Because of the high failure rate of new businesses, it is important to develop a

detailed business plan before embarking on a potentially expensive insurance

marketing campaign. Resources for the insurance industry include professional

associations, such as the Professional Insurance Marketing Association (PIMA),

seminars and training programs, and a wide range of insurance marketing services

available online.
 Definition of Life Insurance

According to the U.S. Life Management Association Inc. (LOMA), life insurance is

defined as follows: “Life insurance provides a sum of money if the person who is

insured dies whilst the policy is in effect”. Anybody who has knowledge about

life insurance will be tempted to say “yes BUT….”. In other words, surely this is

far too brief an explanation for a financial service that provides a very

sophisticated range of savings and investment products, as well as mere

compensation for death.

 Advantages of Insurance

It is superior to traditional saving vehicles: As well as providing a secure vehicle to

build up savings etc., it provides peace of mind to the policyholder. In the event

of untimely death, of say the main earner in the family, the policy will pay out

the guaranteed sum assured, which is likely to be significant more than the total

premiums paid. With more traditional saving vehicles, such as fixed deposits, the

only return would be the amount invested plus any interest accrued.

It encourages savings and forces thrift: Once an insurance contract has been entered

into, the insured has an obligation to continue paying premiums, until the end of

the term of the policy, otherwise the policy will lapse. In other words, it becomes

compulsory for the insured to save regularly and spend wisely. In contrast,

savings held in a deposit account can be accessed or stopped easily.

It provides easy settlement and protection against creditors: Once a person is appointed

for receiving benefits (nomination) or a transfer of rights is made (assignment), a

claim under the life insurance contract can be settled easily. In addition, creditors

have no rights to any monies paid by the insurer where the policy is written under

trust. Under the Married Women’s Property Act, the money available from the

policy forms a kind of trust which creditors cannot claim on.

It helps to achieve the purpose of the Life Assured: If someone receives a large sum of

money, it is possible that they may spend the money unwisely or in a speculative

way. To overcome this, the person taking the policy ca instruct the insurer that

the claim amount is give in installments

It can be encashed and facilitates borrowing: Some contracts may allow the policy can

be surrendered for a cash amount, if a policyholder is not in a position to pay the

premium. A loan, against certain policies, can be taken for a temporary period to

tide over the difficulty. Some lending institutions will accept a life insurance

policy as a collateral for a personal or commercial loan.

Tax Relief: The policyholder obtains Income Tax rebates by paying the insurance

premium. The specified forms of saving which enjoy a tax rebate, under section 8

of he Income Tax Act, include Life Insurance Premiums and contributions to a

recognized Provident Fund etc.

 Criticisms of the insurance industry

Lack of knowledge of policyholders

Insurance policies can be complex and some policyholders may not understand all the

fees included in a policy. As a result, people could buy policies at unfavorable terms. In

response to these issues, governments often make detailed regulations that set down

minimum standards for policies and govern how they may be advertised and sold.

Redlining

Location is one of the variables used to set rates. Insurers are also starting to use credit

"scores", occupation, marital status, and education level to set rates. Many consider

these practices to be "unfair" and even racist. An interesting refutation to this is that the

job of an insurance underwriter is to properly categorize a given risk as to the

likelihood that the loss will occur. Any factor that causes a greater likelihood of loss

should in theory, be charged a higher rate. This is a basic principle of insurance and

must be followed for insurance companies or groups to operate properly, even for non-

profit groups. Thus, discrimination of potential insured by legitimate factors is central

to insurance. Therefore the only thing that can be considered legitimately "unfair" are

practices that discriminate against a given group without actual factors that show that

the group is a higher risk.

Health insurance
Health insurance is one of the most controversial forms of insurance because of the

conflict between the need for the insurance company to remain solvent versus the need

of its customers to remain healthy, which many view as a basic human right. This

conflict exists in a liberal healthcare system because of the unpredictability of how

patients respond to medical treatment.

Many countries have made the societal choice to avoid this important conflict by

nationalizing the health industry so that doctors, nurses, and other medical workers

become state employees, all funded by taxes; or setting up a national health insurance

plan that all citizens pay into with tax payments, and which pays private doctors for

health care. These national health care systems also have their problems. Many

countries have citizen groups which protest bureaucracy and cost-cutting measures that

unduly delay medical treatment.

Many suspect that these prices are set independently of medical necessity or actual

cost. A physician who refuses to accept a Medicare/Medicaid payment will be banned

from accepting any such payments for a number of years, regardless of the reason for

rejecting the payment or the amount offered. In either case, this means that private

insurers have little incentive to pay more than the government does.
 Chapter III

Company Profile

 Brief Overview of TATA AIG

 History

 Management

 Clients of TATA AIG

 Customers of TATA AIG

 Recent Stories
 Brief Overview of TATA AIG Life Insurance

Company Ltd.

Tata AIG General Insurance Company Ltd, and Tata AIG Life

Insurance Company Ltd., (collectively "Tata AIG") are joint venture companies

between the Tata group India's most trusted industrial house and American

International Group, Inc. (AIG), the leading U. S. based international insurance and

financial services organization. Both promoters have a deep and abiding interest in

India's insurance sector. Prior to nationalization, the Tatas pioneered private insurance

in India when Sir Dorab Tata set up New India Assurance in 1919. By 1973, when

General Insurance was nationalized the Tata company had a global presence with 56

overseas offices. AIG too, has always considered the Indian insurance sector to be of

significance. The AIG companies entered India in 1945 and had offices in several cities

prior to nationalization.

TATA AIG leading U.S. - based international insurance and

financial services organization and the largest underwriter of commercial and industrial

insurance in the United States. Its member companies write a wide range of

commercial, personal and life insurance products through a variety of distribution

channels in approximately 130 countries and jurisdictions throughout the world. AIGs

global businesses also include financial services and asset management, including

aircraft leasing, financial products, trading and market making, consumer finance,

institutional, retail and direct investment fund asset management, real estate investment

management, and retirement savings products. American International Group, Inc.'s

common stock is listed on the New York Stock Exchange, as well as the stock

exchanges in London, Paris, Switzerland and Tokyo.

Tata AIG combines the strength and integrity of the Tata Group with AIGs

international expertise and financial strength. The Tata Group holds 74 per cent stake in

the two insurance ventures while AIG holds the balance 26 per cent stake.

Tata AIG General Insurance Company, which started its operations in

India on January 22, 2001 offers the complete range of insurance for automobile, home,

personal accident, travel, energy, marine, property and casualty, as well as several

specialized financial lines

History of TATA AIG

Tata-AIG Life Insurance Company is a joint venture between the Tata

Group (74percent equity stake) and American International Group Inc. (AIG)

(26percent equity stake). The company offers a broad range of life insurance products
to individuals and groups. The products offered to individuals are variations of term life

with or without a savings element, e.g., endowment policies and money back policies.

Tata-AIG Life has been in operation since April 2001 (incorporated on Aug 23, 2000).

While the company itself is relatively new, the Tata group is widely known in Indian

households.

Tata-AIG was among the few private sector insurance players to have

a well-known, reputable local brand, but it did not have a strategic banking alliance

with domestic banks or branch presence in smaller towns that could enable it to

promote micro insurance sales. As a result, its micro insurance strategy had to be

developed around other partner organizations to enable the insurer to penetrate rural

areas. Rural India comprises of over 650 000 villages with over half of them having a

population of less

than 500. Even the state relies on NGOs to provide services to remote and poorly

connected locations.

For Tata-AIGs rural program, it was evident that the main partners would

need to be NGOs. Fortunately, Tata has the reputation of having contributed to

community development over the years. Substantial parts of the group’s profits go into

a trust and several social organizations across the country receive grants and assistance

from these trusts. The link with Tata helped to create a climate in which many NGOs

were favorably disposed towards Tata-AIG.

Management

Trevor Bull – Managing Director

Mr. Trevor Bull joined Tata AIG Life as Managing Director in January 2006. Prior to

this, Trevor was Senior Vice President and General Manager at American International

Assurance in Korea.

Trevor has over 28 years of experience in the life insurance industry and has spent

considerable time working in Japan and Britain. His experience covers an array of

skills at various authority levels including Director, Regional Executive, Senior Line

Management and Project Management. Additionally, Trevor has acquired keen insights

into Unit Linked, conventional life and health insurance/ reinsurance and all major

products & distribution channels.

A proud father of two boys and one girl, he aligns his hobbies with theirs and connects

with them through a game of tennis or football regularly.

TATA AIG’S Organizational Chart
Clients of TATA AIG

Issues Observations
Intended target group/clients Rural, low income and landless adults
Actual clients and reasons if deviation Mostly as per above

from intended market

Exclusions of specific groups Agents are discouraged from selling to the

urban poor and the rural poor living

directly along truck route stops

General economic situation of clients Generally monthly household incomes are

less than USdollar100. The majority of

clients have monthly household incomes

less than USdollar50. About 80percent

hold no other insurance policies

Key economic activities of clients Daily waged laborers, petty traders, milk

producers.
percent of employees working in informal 100percent

economy
Social characteristics of clients Lower and lower-middle income persons

in rural villages with population less than

5000
Geographic characteristics Well dispersed
Nature of membership Individual policy holders
 Customers of TATA AIG

Solutions for Corporate

"From blue chips to local marketers, whatever the size of your business, Tata AIG has

the insurance you are looking for."

Credit Life

• Personal Loan Reducing Term Insurance Protection Plan.

• Group Credit Card Term Insurance Protection Plan.

• Mortgage Reducing Term Insurance. Benef

Employee Benefits
 • Group Term Life Cover.

• Group Term Life in Lieu of EDLI.

Retirement

• Unit Linked Comprehensive Superannuation Scheme.

• Unit Linked Gratuity Scheme.

• Non Unit Linked Comprehensive Superannuation.

• Non Unit Linked Comprehensive Gratuity.

Solutions For Individuals

"Every stage of life, you are open to immense risk and immense opportunity. and Tata

AIG has the ideal bouquet of insurance products for each of those risks and

opportunities."
 Children

 Adults

 Assure Lifeline

 Assure Money Saver

 Assure Growth & Security

 Assure Golden Years

 Health Protector

 Life Plus

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Recent Stories

 July 28, 2005 - Tata AIG General Reaches out to all its Flood Affected

Customers

 July 20, 2005 - Tata AIG General Goes 'Mobile' with SMS Based Initiatives.

 May 19, 2005 - Tata AIG General Profit before tax grows 236 percent .

 March 21, 2005 - Tata AIG General Insurance Company expands distribution

network; launches branch in Nasik.

 March 21, 2005 - Tata AIG General Insurance Company expands distribution

network; launches branch in Jaipur.

 March 21, 2005 - Tata AIG General Insurance Company expands distribution

network; launches branch in Coimbatore.

 February 22, 2005 - Tata AIG General enters into a strategic alliance with TT

Enterprises for distribution of its insurance products.

 February 3, 2005 - Tata AIG launches first of its kind group travel insurance

cover for overseas business traveler - Business Travel Guard.

 July 15th, 2004 - Tata AIG enhances distribution channel Ties-up with the

Orissa State Co-operative Bank for Banc assurance.

 June 25th, 2004 - Tata AIGs ‘Green Channel Settlement’ to make accident

repairs and claims easier than never before.

 Tata AIG expands its distribution network: launches branch in Lucknow,

Ahmedabad.
 Tata AIG General reports premium income at Rs. 353 crores and maiden profit

of Rs. 15 crores.
 Chapter IV

 Analysis of the Satisfaction Level of Employees of

TATA AIG
 Findings

The findings from the survey of a sample size of 100 are:

1. 58% of the employees told that the find the working environment satisfactory in

TATA AIG. 8% of the employees find the working environment as good.

2. 37% of the employees have okay kind of relationship with their bosses.

3. 43% of the employees consider “Brand Name” as the most important factor for

joining an organization followed by 15% each of those who consider

“Designation” and “Pay” as the next important factor.

4. 47% of the employees joined TATA AIG because of it’s “Brand Name”. Then

15% of the employees joined this organization because of the “Designation”

and

“Pay” they are given here.

5. 42% of the employees told that they are satisfied while working with TATA

AIG.

6. 78% of the employees told that they would like to switch to other job within the

same industry if give an offer.

7. From among 78 of those who would like to switch to other job 65% of them

answered that other big brand name within the same industry would be the

reason for them to switch. For 19% of them “Designation” and for 18% of them

“Pay” could be the reason.

8. 84% of the employees answered that they would not like to switch to another

industry.
9. For 16% of those, who would like to switch to another industry told that “Less

awareness among people” about this industry would be the reason for them to

exit out of this industry and this further is the reason for its slow growth.

10. 100% of the employees agreed that motivational factor is necessary for any

employee to keep his or her performance up to mark.

11. 49% of the employees told that “Recognition” is the most important

motivational factor.

12. 43% of the employees agreed that TATA AIG work on motivating it’s

employees but they also told that the motivational factor that this organization is

providing is not satisfactory enough.

Graphs

Table 1.

Working Environment in TATA AIG No. of respondents

Good 28
Bad 14
Satisfactory 58
Total 100

Working environment in TATA AIG

Good
28%

Satisfactor
y
58%
Bad
14%

Good Ba d Satisfactor y

Interpretation: 58% of the employees told that the find the working
environment satisfactory in TATA AIG. 8% of the
employees find the working environment as good.
Table 2.

Relationship with supervisors No. of respondents

Healthy 22
Unhealthy 31
Okay 37
Total 100

Relationship with supervisors

Healthy
25%
Okay
41%

Unhealthy
34%
Healthy Unhea lthy Okay

Interpretation: 37% of the employees have okay kind of relationship with their
bosses. While 34% have unhealthy relationship with their
bosses and 22% of the employees share a healthy relationship
with their boss.
Table 3.
Factors considered imp. while No. of respondents
looking for a job
Pay 15
Brand Name 43
Work Culture 10
Freedom in working 13
Designation 15
Office Location 4
Total 100

Factors considered important by employees while

looking for a job.

Office P ay
Designation
Location 1 5%
15%
4%

Autonomy
13%

Work Culture
10%
Brand Name
43%

Pay Brand Name Work Culture Autonomy Dsignation Office Location

Interpretation: 43% of the employees consider “Brand Name” as the most
important factor for joining an organization followed by 15%
each of those who consider “Designation” and “Pay” as the next
important factor.
Table 4.

Reasons for joining TATA AIG No. of respondents

Pay 22
Brand Name 40
Work Culture 10
Freedom in working 13
Designation 15
Office Location 4
Total 100

Factors considered important by employees

while joining TATA AIG.

Office
Designation Location Pay
15% 0%
22%

A utonomy
13%

Work Culture
10%

Brand Name
40%

Pay Brand Name Work Culture

Autonomy Designation Office Location
 Interpretation: 47% of the employees joined TATA AIG because of it’s
“Brand Name”. Then 15% of the employees joined this
organization because of the “Designation” and “Pay” they are
given here.
Table 5.

Satisfaction level while working with No. of respondents

TATA AIG
Highly Satisfied 12
Satisfied 42
Not Satisfied 46
Total 100

Satisfaction level among employees while

working with TATA AIG.
Highly
Satisfied
12%
Not
Satisfied
46%

Satisfied
42%

Highly Satisfied Satisfied Not Satisfied

Interpretation: 42% of the employees told that they are satisfied while working
with TATA AIG. 46% of those who told that they are not satisfied
also includes those whose satisfaction levels are not as low as told
to be not satisfied but I comparison to the satisfied ones they are
most likely to switch to other job within the same industry.
Table 6.

Switchers within the same industry No. of respondents

in other job
Yes 78
No 22
Total 100

Percentage of employees who would like to

switch to other job within the same industry.
No
22%

Yes
78%

Yes No

Interpretation: 78% of the employees told that they would like to switch to
other job within the same industry if give an offer.
Table 7.

Reasons for switching to other jobs No. of respondents

Pay 18
Brand Name 65
Work Culture 8
Designation 19
Office Location 0
Total 100

Reasons for employees to switch to other jobs.

Designation
19%
Pay
17%

W ork Culture
8%

Brand Name
65%

Pay Brand Name Work Culture Designation

Interpretation: From among 78% of those who would like to switch to other
Job 65% of them answered that other big brand name within
the same industry would be the reason for them to switch. For
19% of them “Designation” and for 18% of them “Pay” could
be the reason.
Table 8.
Switchers to other industry No. of respondents
Yes 16
No 84
Total 100

Percentage of employees who would like to

switch to other job in other industry.

Yes
16%

No
84%

Yes No

Interpretation: 84% of the employees answered that they would not like to switch
to another industry.
Table 9.

Reasons for exiting insurance No. of respondents

industry
Less scope in insurance industry 4
Slow growth of insurance industry 24
Monopoly of few companies 6
Less awareness among people 66
Total 100

Reasons for exiting insurance industry

Less scope in
insurance
industry
4%

Slow growth
24%

Less Mo nopoly of
awarene ss few
among co mpanies
people 6%
66%

Less scope in insurance industry

Slow growth
Monopoly of few companies
Less awareness among people
Interpretation: For 16% of those, who would like to switch to another industry
told that “Less awareness among people” about this industry
would be the reason for them to exit out of this industry and
this further is the reason for its slow growth.
Table 10.

Motivational factors considered imp. No. of respondents

Increase in Pay 10
Rewards 13
Recognition 49
More freedom to work 17
More Responsibility 11
Total 100

Motivational factors considered most important

by employees.

Increase in
More Pay
responsibilit 10%
y
More 11% Rewards
freedom to 13%
work
17%

Recognition
49%

Increase in Pay Rewards

Recognition More freedom to work
More responsibility
Interpretation: 49% of the employees told that “Recognition” is the most
important motivational factor.
Table 11.
Motivational factors present in No. of respondents
TATA AIG
Increase in Pay 8
Rewards 62
Recognition 20
More freedom to work 6
More Responsibility 4
Total 100

Motivational factors present in TATA AIG.

More
responsibilit
y
Increase in
4%
More Pay
freedom to 8%
work
6%

Recognition
20%
Rewards
62%

Increase in Pay Rewards

Recognition More freedom to work
More responsibility
Interpretation: 43% of the employees agreed that TATA AIG work on
motivating its employees but they also told that the
motivational factor that this organization is providing is not
satisfactory enough. As graph above is showing, there is an
absence of the right kind of “Autonomy” and
“Authority” given to employees as a motivational factor.

Discussions

The survey done for finding the satisfaction level

of employees towards the study of attrition problems gong on in

the organization has revealed certain facts:

i) The satisfaction level of employees while working with TATA

AIG is not so high. 42% of employees have responded very

clearly that they are satisfied.

ii) Brand Name and pay has been the reason for most of the

employees to join this organization.

iii) Motivational factor is considered important by all employees

of the organization. Most of the employees agree as well

that they are motivated in TATA AIG.

The crux of the above three points is that

despite of being a big brand name and offering a good pay in

comparison to other organizations in the same industry, the

satisfaction level of employees is not so high. This low level of

satisfaction level is the reason why employees are very frequently

leaving the organization making “Attrition” a big issue. The

reasons for low satisfaction level according to this study are:

i) Absence of desired motivational factors: The findings

show that there is a presence of motivational factors in the

organization. “Reward” is in utmost practice by the

organization towards motivating its employees. But,

“Recognition” and “Authority and Autonomy” are the factors

which are given the most importance by employees.

According to them, organization does not give more

responsibilities to employees when they deserve so after

achieving their targets or enhancing their performance.

Employees who thin themselves deserving to get ore

authority find themselves restricted to their monotonous

area of work.

ii) Communication gap between employees and their

supervisors: This is another problem which is existing in

TATA AIG. The findings show that only 22% of employees

are having healthy relationship with their bosses. This

becomes the responsibility of the HR department to

maintain such a working environment in which everybody is

free to share information with ease.

iii) As the data says, “Pay “is the second most reason for

employees to join TATA AIG. So, money is not an important

 factor for employees to leave the organization. But, increase

in pay is not given as a motivational factor to a good

performing employee which is of concern to him or her.

Employees feel that they have entered an organization

where pay is good in comparison to other organizations

operating in the same industry but once they have entered,

there is no increment in their pay even if they perform good

or achieve their targets.

iv) One of the most important outcomes of this study is that

employees are not interested in leaving the insurance

industry. According to them, they find the insurance industry

booming at this point of time and is expecting to be the

biggest industry in India in coming years.

Recommendations

This project work has outlined several problems which are responsible for the low

satisfaction level of employees in the organization thereby making them to leave.

Following are some recommendations that would help the organization in retaining

its employees:

i) Employees should be given the desired motivational factors which should

be :
 a. More authority to work

b. More autonomy or freedom to work.

c. Increase in pay

ii) HR department should work for filling the vertical communication gap. This

can be done by some level of mentoring and guidance by the supervisors.

There should be an easy access to top management as well.

iii) Organization should measure the employee attrition rate from time to time.

The organization should come to know the reasons for attrition of

employees in the organization. A feedback kind of system should be

adopted in the organization.

iv) Exit interview of the employees should also be conducted so that the

reasons for the particular employee leaving the organization could be traced.

v) It should also be taken into account whether employees are satisfied are not.

This could be done through conducting regular surveys within the

organization. Employee’s consent should be taken in each and every

decision that is taken for them.

 References

To obtain more information regarding the present study and to

substantiate it with

theoretical proof, the following references were made:

List of Books and other supplementary material referred to:

Books

• An Introduction to Human Resource Management of ICFAI National

College

• An Introduction to Organizational Behavior by Stephen P. Robbins &

Seema Sanghvi

• An Introduction to Organizational Behavior of ICFAI National College

• Human Resource Management by V S P Rao

Websites

• www.google.com

• www.hr-guide.com
 Annexure

Questionnaire
(All the details will be kept confidential)
Name : _______________________________________
Address : _______________________________________
Ph. No./Mob. No. : _______________________________________
Designation : _______________________________________
Tenure of working with TATA AIG : ___________________________

1. How do you find the working environment in TATA AIG?

a) Good b) Bad c) Satisfactory
2. How is your relationship with your supervisor?
a) Healthy b) Unhealthy c) Okay
3. What is the most important factor that you consider while looking for a job?
a) Pay b) Brand Name c) Work Culture of organization
d) Freedom in working e) Designation f) Office Location
4. What was the reason that made you to join TATA AIG?
a) Pay b) Brand Name c) Work Culture of organization
d) Freedom in working e) Designation f) Office Location
g) Any other reason Pl. Specify ______________
5. What is the degree of satisfaction in you while working with TATA AIG?
a) Highly Satisfied b) Satisfied c) Not Satisfied
6. What is about your job that you like most?
____________________________________________________________________
__
7. What is about your job that you do not like?
___________________________________________________________________
__
8. What is about TATA AIG that you do not like?
 ___________________________________________________________________
__
9. (i) If given an offer, would you like to switch to other job in the same industry?
a) Yes b) No
(ii) What would be the reason for your separation with the present organization?
a) Pay b) Designation c) Office Location d) Other Brand
Name
e) Work culture of other organizationf) Any other reason
___________________

10. (i) Would you like to switch to another industry in future?

a) Yes b) No
(ii) What would be the reasons for you to switch to another industry?
a) Less scope in insurance industry
b) Slow growth of insurance industry
c) Monopoly of few companies
d) Any other reason Pl. Specify ______________________________________
11. Do you think that motivational factor is necessary to keep your performance up to
mark?
a) Yes b) No
12. Which of these motivational factor, you find the most important?
a) Increase in pay b) Rewards c) Recognition
d) More freedom to work e) More Responsibility
13. Does TATA AIG work on motivating it’s employees?
a) Yes b) No
14. What are the motivating factors that TATA AIG provides you?
a) Increase in pay b) Rewards c) Recognition
d) More freedom to work
e) More Responsibility f)Any other pl. specify
_______________________