SUMMER INTERNSHIP REPORT 2010, Birla Institute of Management Technology, Greater Noida

SUMMER INTERNSHIP 2010 A SUMMER PROJECT REPORT ON Calculating the Return on Investment (ROI) for the fir st thirty days of Launch Pad Training using the Kirk Patrick Model A Report submitted to DLF PRAMERICA LIFE INSURANCE (Session 2009-11) Submitted by: Ashima Ajmani PGDM Roll No. 09DM025 Corporate Guide Mr. Arindam Lahiri Academic Guide: Prof R.J. Masilamani Page 2

SUMMER INTERNSHIP 2010 SUMMER PROJECT CERTIFICATE This is to certify that Ms. Ashima Ajmani (Roll No: 25 / 2009) a student of PGDM has worked on the Summer Project titled, Calculating the Return On Investment f or the first thirty days of the Training Of Sales Managers through the Launch Pa d Process after trimester III in partial fulfillment of the requirement for the programme. This is her original work to the best of my knowledge. Date: Signature Seal: (Prof. R.J. Masilamani) Page 3

SUMMER INTERNSHIP 2010 ACKNOWLEDGEMENT This project report bears the imprint of many people who have helped me for the successful completion of this report. I acknowledge with gratitude the managemen t of Birla Institute of Management Technology (BIMTECH), Greater Noida for givin g me this opportunity to undertake this summer internship, which has been a very enriching experience for me. With due reverence, I must acknowledge the great d eal of pain undertaken by the officials of DLF Pramerica Life Insurance who were always ready to solve all my queries and provide me with the material relevant for this project. I am greatly indebted to the following senior executives of DL F Pramerica Life Insurance for providing me constructive suggestions, essential resources and constant inspiration during the summer internship: Mr. Arindam Lah iri, Mr. Praveen Singh, Miss Shivani Narang, Mr. Amit Rishi, Mr. Satinder Sahi, Mr. Rohit Shandil, Mr. Jasvinder Lamba. Sincere heartfelt thanks to all other em ployees of DLF Pramerica Life Insurance who have directly or indirectly helped m e in the successful accomplishment of this report. I would like to thank all the faculty members and staff members of BIMTECH, especially Prof. R.J. Masilamani for his continuous feedback, encouragement, suggestions, and insights and for mo tivating me for higher achievements. Last but not least, my dear friends and my family deserve special mention for their support throughout the project. Ashima Ajmani Birla institute of Management Technology (BIMTECH) Greater Noida Date: 15th June, 2010 Place: Greater Noida. Page 4

SUMMER INTERNSHIP 2010 TABLE OF CONTENTS Topic Page Number

1. Executive Summary.. 2. Introduction................ nsurance Industry Evaluation Of Training(The Launch Pad Process) 06-07 08-16 08-10 11-16 17-39 17 18-28 29-30 30-35 36-37 38-40 41-44 45 46 46

3.4.1. Problem Definition and Objectives. 3.4.2. Methodology. 3. ons..... 4. 5. 6. Glossary............................. Notes 47 48 49-86 Page 5

SUMMER INTERNSHIP 2010 1. EXECUTIVE SUMMARY This summer training project was done at DLF Pramerica Life Insurance, one of th e leading private Indian life insurance company which has a capital base of over Rs 180 crores and is expanding at a fast pace with presence currently in Delhi/ NCR, Punjab, Haryana and Gujrat The training & development department is engaged in the induction and training of Sales Managers and the project was to study an d understand the Launch Pad Process, analyze the effectiveness of the Launch Pad training and to calculate the ROI of first thirty days of the Launch Pad Traini ng. The study was conducted for Agency Sales Managers / Associate Sales Managers and Senior Sales Managers who joined DPLI from Jan 2010 March 2010 across all l ocations The project was divided into five levels. The five levels were taken fr om the Kirk Patrick Model as this model was the conceptual framework for the stu dy conducted. In Phase I we have compiled and analyzed the feedback, which was collected from the Sales Managers at the time of training. It also dealt with areas of improvem ent for the training. In Phase II we have analyzed whether the Sales Managers have learnt anything fro m the training. It also identified whether the Sales Mangers have improved on th eir knowledge level as well as skill level. Page 6

SUMMER INTERNSHIP 2010 In Phase III we have done a comparison between the skill level after 90 days of training imparted to the Sales Managers and skill level a t the initial level i.e., immediately after 30 days of training In Phase IV, we have also made comparison on the following areas between the Sal es Managers who joined in 2009 and had undergone training programme in the year 2009 and the sales managers who joined in 2010 and have undergone the revised tr aining programme in 2010: a. Productivity of the Sales Managers b. Number Of Lif e Associates coded by the Sales Managers c. Attrition rate of the Sales Managers In Phase V we have calculated the Return on Investment for the first thirty days of the Launch Pad training Page 7

SUMMER INTERNSHIP 2010 1. INTRODUCTION 2.1 LIFE INSURANCE INDUSTRY LIFE INSURANCE:Life insurance can be defined as life insurance provides a sum of money if the person who is insured dies while the po licy is in effect . In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life In surance Company; the Bombay mutual life assurance society was set up in 1870. Th e life insurance act, 1912 was the first statuary measure to regulate the life i nsurance business in India. In 1983, the earlier legislation was consolidated an d amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies t o have foreign equity up to 26%. Following the opening up of the insurance secto r, 12 private sector companies have entered the life insurance business. BENEFITS OF LIFE INSURANCE: Life insurance encourages saving and forces thrift. I t is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It provides valuable tax relief. Page 8

SUMMER INTERNSHIP 2010 Thus insurance is found to be very useful in the lives of the person both in sho rt term and long term. Fundamental principles of life insurance contract: Princip le of almost good faith:- A positive duty to voluntary disclose, accurately and fu lly, all facts, material to the risk being proposed whether requested or not . Pri nciple of insurable interest:- Relationships with the subject matter (a person) wh ich is recognized in law and gives legal right to insure that person . BRIEF HISTORY OF THE INSURANCE SECTOR IN INDIA In 1818, Oriental Insurance Compa ny started by Europeans in Calcutta was the first life insurance company on Indi an soil. But Indian lives were being treated as sub-standard lives and heavy ext ra premiums were being charged on them. Bombay Mutual Life Assurance Society her alded the birth of first Indian life insurance company in the year 1870, and cov ered Indian lives at normal rates. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 ga ve rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore wer e established in 1906. Page 9

SUMMER INTERNSHIP 2010 In the year 1912, the Life Insurance Companies Act, and t he Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies s hould be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantag e. The Insurance Act 1938 was the first legislation governing not only life insu rance but also non-life insurance to provide strict state control over insurance business. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Life Insurance Corporation of India was created on 1st September, 1956. At present there are 23 private life insurance companies in India. Page 10

SUMMER INTERNSHIP 2010 2.2 INTRODUCTION OF DLF PRAMERICA LIFE INSURANCE COMPANY PROFILE DLF Pramerica Life Insurance Company Ltd. (DPLI) is a joint venture between DLF Limited and Prudential International Insurance Holdings, Ltd. (referred to herea fter as "PIIH"). PIIH is a fully owned subsidiary of Prudential Financial, Inc. (referred to hereafter as "PFI"). The combination of the strength of the DLF bra nd and PFI's insurance expertise provides the strongest possible foundations for DPLI to succeed in the rapidly growing Indian life insurance market. Founded in 2007 Headquartered in Gurgaon, Haryana DLF holds 74% equity in the venture whil e PIIH holds 26% equity as per FDI Norms Capital base of over Rs 180 crores Expa nding at a fast pace with presence currently in Del NCR, Punjab, Haryana & Gujra t No. of policies No. of employees No. of agents

: 10530 (as of October 31, 2009) : 714 (as of October 31, 2009) : 1056 (as of Oc tober 31, 2009) Page 11

SUMMER INTERNSHIP 2010 DLF DLF Limited is one of the largest and most respected organisations in the re al estate sector in India with over six decades of experience and a track record of sustained growth, customer satisfaction, and innovation. In September 2006, DLF Limited was the only real estate firm to be nominated amongst the "Super bra nds of India" in the consumer validated category. After strengthening its positi on in the core business of residential, commercial and retail property developme nt, the DLF group has now made forays into the infrastructure, SEZ and hotel bus inesses by entering into several strategic alliances with global industry leader s like Laing ORourke Plc. and Hilton Hotels Corporation.DLF is committed to quali ty, trust and customer sensitivity, and to deliver on promises with agility, fin ancial prudence and in tune with the highest global standards. PFI PFI is a U.S. based financial services leader with its headquarters in Newar k, New Jersey, with approximately US$ 638 billion of assets under management as of June 30, 2008 and operations in the United States, Asia, Europe and Latin Ame rica. PFI is focused on helping its customers achieve financial prosperity and p eace of mind.PFI ranks among the Top 100 in the 2007 Forbes Global 2000 List, an annual tabulation of the world's largest public companies and ranks 1st on Fort une Magazine's list of World's Most Admired Companies in the Insurance: Life and Health Insurance Category two years running, in 2007 and 2008. With more than 1 30 years in financial services, PFI is focused on helping approximately 50 milli on individual and institutional customers grow and protect their wealth. The com pany's well recognized 'Rock' symbol is an icon of strength, stability, expertis e and innovation that has stood the test of time. PFI's businesses offer a varie ty of products and services, including life insurance, annuities, retirement-rel ated services, mutual funds, investment management, and real estate services. PF I's legacy is based on a long history of social responsibility, strong leadershi p, sound investments, and innovative products and services. Page 12

SUMMER INTERNSHIP 2010 VISION At DLF Pramerica, our vision is to ensure that every life we touch feels secure and enriched. MISSION We shall be a guide and a mentor to people so that they are able to make the most informed insurance decisions to meet their life goals. VALUES:CUSTOMER FOCUSEDBe someone who places customers and their needs at the forefront while developing and managing their financial solutions. MUTUAL RESPECTBuild mutual respect by being an equal partner, who knows and will ingly shares, helping people go further rather than walking ahead and leading th em or walking behind and following. WORTHY OF TRUSTBuild trust by choosing the right path rather than the easy path and tell the truth the way it is. Be someone who keeps promises, meets commitmen ts and behaves with integrity at all times. WINNINGBe positive and confident; seize every moment, every day, with a winning perspective, fearlessly facing the uncertainties of life. Page 13

SUMMER INTERNSHIP 2010 The DLF Promise Deliver on promises with agility Financial Prudence Quality Trust Customer Sensitivity Highest Global Standards REVISED LAUNCH PAD PROCESS FOLLOWED FROM JANUARY 2010 Launch Pad is an Induction & Training Program held for 90 days at DPLI for the S ales Managers .It is a combination of both class room training and field work For the first seven days Sales Managers are given class room training in which hey are introduced to the organization Their role in the organization is defined Their expectations from the organization and what the organization expects from them is defined The principles of insurance, the industry and common terminolog ies are taught Page 14 T

SUMMER INTERNSHIP 2010 The Agency Reward and recognition and incentive plan whic h they would be entitled to depending upon their performance is discussed and ex plained Sales Process followed at the organization is taught wherein how calling is done to a prospective Customer, Fixing a meeting with the Customer, Presenti ng the Company using Sales Presenter ,do the need analysis with the customer (NA F) and match the need to the products Closing the Call and finally taking referr als from the customer Financial & ULIP basics and knowledge about the various pr oducts at DPLI is imparted Recruitment Process for the Life Associates is taught wherein how Name Gathering is done for prospective Agents, Approaching and fixin g a meeting with the agent, PFS is presented to the agent ,CAS where an is agent assessed & SN 100 is done. Interview with the Managing Partner (Branch Head) is fixed and if the agent is selected he gets coded with the Company after clearin g an exam under IRDA Assessing Customers need and fulfilling it is taught using R ole Plays and demonstrations and using all the forms which are required Objection handling on various stages is done At the end i.e. on the seventh day an exit t est consisting of product ,sales knowledge and also basics of insurance are test ed Also there is an assessment(Assessment 1 of LP-1) done by the trainer For the Next 15 days Field Work is conducted wherein Goal setting of the SM is done by the MP The MP explains to the SM about the rewards & recognitions and the compen sation details The Product Refresher and Business illustration are done by the t rainer Basics of Underwriting is taught Joint field work with branch head and tr ainers at branch level is done Objection handling on various stages is done Page 15

SUMMER INTERNSHIP 2010 Form filling is taught Sales Manager has to complete 25/5 0 hours of training mandated by IRDA SM has to undergo IRDA Refresher and give a n exam and has to be certified by the end of 25 days For the Next 3 days classro om training is conducted wherein Product Review and refresher on sales is done O bjection handling on various stages is done At the end of 3 days the Sales Manag er is assessed by the RM and the CDM. For the Next 60 days handholding by Associate Partner, Trainer and managing Part ner is conducted wherein the Sales manager is supposed to build skills in sales process and master product pitch Within 90 days SM is expected to do 1.5Lac FYPC and 3 coding of Life Associates LAUNCH PAD TRAINING AT DPLI DURING 2009-10 As a means of equipping Sales Managers with a range of skills, to enable them pe rform their responsibilities, Induction, Training and HRD continued to receive a place of priority during the year. Based on the assessed needs and as means to satisfy them, the Company sponsored many employees to Launch Pad training progra mme. Training during 2009-10 (as on 31.03.20010) Data collected from the records whic h the company maintains(Secondary Source) Training Programmes No. SMs Sales Manag ers Trained in 2009 Sales Managers Trained in JFM 2010 767 200 Of Total No. of M an days utilised 5753 2600 Page 16

SUMMER INTERNSHIP 2010 3.1 INTRODUCTION: Every organization requires competent employees (Sales Managers) for the success ful functioning of its various departments. To ensure that the staff works effic iently and effectively, the organization has to continuously evaluate their perf ormance and bridge any performance gaps by providing appropriate training to the m. For, it is the people who make or break an organization. Traditionally, the training policy in an organization focused on enhancing the p roductivity and effectiveness of the employees so that the medium term and long term strategies of the organization could be successfully fulfilled. Since upgra dation of skills and knowledge has direct relevance to performance. With the ushering in of Globalization and Liberalization since early 1990s, ther e has been a sea change in our business processes, and our corporate practices f orcing organizations to mould themselves to the new era of competition, where th ey have to compete not at local or national level but at international level. Th is necessitates huge investments in the training programs for providing the requ isite skill set to the staff. The ultimate aim of any training program is to achieve: - Continuous Improvement - Change-in-Attitude - Cost Saving - Total Productivity - Scope for development Page 17

SUMMER INTERNSHIP 2010 3.2 REVIEW OF LITERATURE As customer relationship plays a major role in the insurance business, adequate training has to be provided to the employees to understand the customer needs an d communicate the suitable product details according to their requirements. A co mpany will be successful if the intermediaries interacting with the customers ha ve a sound knowledge of the products available and are able to convey the same t o the end users. Insurance expert Dale S Beach defined training as the organized procedure by which the employees learn knowledge and skills for a definite purpo se. The organization has to conduct training programs to educate the employees ab out the various products available, to improve their selling skills and also to equip them to handle different types of customers. Liberalization and privatizat ion of the insurance sector have resulted in a competitive market. Insurance com panies require smart and skilled personnel to compete with their rivals in the m arket. The companies should impart necessary knowledge and skills to the employe es by conducting training programs, seminars, conferences and workshops. A survey reveals that the training sensitivity among the private insurers stands at 3 on the scale of 0 to 5, where 0 represents not sensitive and 5 represents highly sensitive. The focus of the training during the last decade has shifted f rom training for survival to training for success. Training, therefore, has to serve as a vehicle for change. To satisfy the curiosity of Sales Managers, the facult y members will have to become real mentors and not merely teach only the theoret ical concept. The training system has to develop wings to fly towards greater he ights. All this is possible only when the organizations evaluate the effectivene ss of the existing training programs on performance improvement of the employees and thereafter make suitable changes in the training policy to bridge the perfo rmance gaps in the employees. Page 18

SUMMER INTERNSHIP 2010 In the present competitive and dynamic environment, it has become essential for organizations to build and sustain competences that would provide them sustainab le competitive advantage. During the initial industrial and manufacturing era, o rganizations and managers adopted an ad hoc and paternalistic approach to his co ncern. But, in this knowledge era, where human assets are valued more highly tha n physical assets, it is but natural that organizations adopt a strategic and pl anned approach towards the maintenance and upgradation of human resources. In th is context of changing technologies and required skills/knowledge, training has assumed more importance than ever before. Dynamic and growth-oriented organizations recognize training as an important aspect of the managerial function in a continuous and incessant learning process in human resource development. It helps to develop ones personal ity, sharpen the managerial and interpersonal skills, increase motivation, and improve the effectiveness of peop le employed in an organization. It also helps to achieve congruence between corp orate and strength of its people, training is undoubtedly the most important par t of organization renewal as an ongoing process. Training is a process through w hich a person enhances and develops his efficiency, capacity, and effectiveness at work by improving and updating his knowledge and understanding the skills rel evant to his or her job. Training also helps a person cultivate appropriate and desired behaviors and attitudes towards work and people. Training and developmen t in public and private enterprises is a big business. It encompasses various players, i.e., trainees, instructors, support personnel, and managers and supervisors, as also external agencies. Keeping in view the number and variety of training programmes, resource required and objectives/goals soug ht, training may be herculean task. No enterprise can last long in a highly comp etitive society unless it keeps pace with the emerging market trends and technol ogical changes. If an enterprise has to compete successfully, its products or se rvices must excel. Page 19 In addition to an aggressive and

SUMMER INTERNSHIP 2010 imaginative research and engineering effort, it also requ ires sustained and forwardlooking training and development efforts. TRAINING PROGRAMME It can be defined as a planned process through which an organization seeks to at tain the objectives of performance enhancement by developing the skills of a set of learners or by fulfilling the learning requirements on an identified group o f employees. The planning process identifies the group of learners, the trainers , the venue, and the required resources (financial and physical). Hence, the mai n functions of a training programme may be summarized as follows: It helps the trainees acquire knowledge of the subject matter. . It brings about change in attitudes, understanding, and behaviour among the trainees with respe ct to particular objects, programmes, and policies. Helps in putting the theorie s into practice and bringing out general guidelines from various hypotheses. New recruits in insurance industry, after training in theoretical aspects, are expo sed to practical aspects through role plays and joint field calls.

It helps evaluate the abilities, competencies, and potentials of the trainees fo r a particular job or work skills. The assessment centre concept, which is widel y adopted by organizations, is aimed to assess the skills/competencies/potential s of employees and thereby plan for a career path for them.

It induces zeal and enthusiasm for self-learning and development among the train ees. The induction training typically encompasses group and self learning exerci ses, mainly to induce the self- and shared learning among the trainees.

It enhances the problem-solving and decision-making capabilities of the trainees . The in-basket exercise, such as role-plays, used in off-the-job training is ai med at improving the decision-making skills of trainees. Page 20

SUMMER INTERNSHIP 2010 It helps in narrowing down the gap between the expected l evel of performance and the actual level of performance among the trainees. It p rovides new recruits or trainees a scientific pace for imbibing the knowledge an d skills required to discharge their duties and responsibilities meaningfully an d purposefully. Accordingly to Flippo, training is the act of increasing the knowledge and skill s of an employee for doing a particular job. The major outcome of training is learning, i.e., transformation in the behavioral process in the form of increase d performance, technical know-how, performing the job more effectively, and also preparing the individual for higher-level jobs. NEED AND IMPORTANCE OF TRAINING Training is mainly job-oriented; it aims at main taining and improving current job performance. The need for a training programme may arise due to the following: ENTRY OF NEW RECRUITS: New entrants need training to attain clarity in job respo nsibility, nature of the job, and other organizational matters so that person-ho urs are not wasted.

PROMOTIONS: Preparation of employees for higher level jobs like promotions requi res skill upgradation or competency building. TO PREVENT SKILL OBSOLESCENCE : Tr aining and development programmes foster the initiative and creativity of employ ees and help to prevent obsolescence of skills, which may be due to an employers age, temperament, motivation level or inability to adapt to technological change s.

TO INCREASE PRODUCTIVITY: Instruction can help employees increase their level of performance on their present assignment. Increased human Page 21

SUMMER INTERNSHIP 2010 performance often leads to increased operational producti vity and increased company profit. TO IMPROVE QUALITY: With globalization, incre ased competitiveness has resulted in greater emphasis on producing or delivering quality goods and services. Hence training in quality maintenance and quality m anagement becomes essential. TO MEET ORGANIZATIONAL OBJECTIVES: Future organizat ional goals, plans dictate training of its existing workforce, particularly, whe re there is a dearth of skills to match the needs of organizational plans. TO IM PROVE ORGANIZATIONAL CLIMATE: Organizational climate refers to the overall relat ions and effective orientations of the employees towards the organization. These orientations may be positive or negative. Positive orientations will result in increased productivity and employee morale. Training is essential to maintain an d sustain positive orientations or is employees. TO PREVENT ACCIDENTS: Training can create awareness about safety hazards and accident proneness and may equip t he individuals with better orientations to handle crises. TO AVOID BOREDOM, MONO TONY AND FATIGUE: Refresher course may be organized intermittently for all emplo yees in the rank and file category to relieve job fatigue and monotony of everyd ay work-file. TO SUPPORT PERSONAL GROWTH AND DEVELOPMENT: Employees gain a lot b y training and developmental programmes. Management development programmes seem to give participants a wider awareness, improved skills, and enlightened artisti c philosophy and make enhanced personal growth possible. Page 22

SUMMER INTERNSHIP 2010 BENEFITS FOR INDIVIDUALS It enhances their skills / knowledge, which increase their personal worth and em ployability. It makes employees effective and efficient and as a result there is a reduction in wastage of resources and time. Employees can realize their caree r goals easily. Career moves and job-hopping, which happen to be the order of th e way, can be made in a flexible manner. There will be greater awareness, less e rrors, increased productivity, and boost in morale of the employees. BENEFITS FOR THE ORGANIZATION There will be an increase in the intellectual capital of the organization. Train ing helps in achieving higher standards of quality, building up a satisfactory o rganizational structure, delegating authority, and motivating employees to perfo rm better.

Employee turnover and absenteeism are reduced. Wastage is minimized. Job enlarge ment and job enrichment programmes can be implemented easily. Making training a continuous affair in the organization can strengthen employee loyalty. AREAS OF TRAINING The broad areas in which training is usually imparted in organizations may be cl assified under the following headings: Page 23

SUMMER INTERNSHIP 2010 Enhancing knowledge / building concepts Basic principles or advanced inputs with regard specific concepts or sometimes knowledge about company, culture, etc. fo rm the major themes in the training programme. For example, in the ICICI Bank, t he training programmes for the Branch Mangers on sales and marketing skills. Tec hnical skills Often training programmes impart specific skills in the areas of c omputers or operating machines. This is usually provided with the help of expert s and on the job. For instance, in the area of networking and security, the trai ners are trained on aspects such as network configuration, network security, int rusion detection system, ethical hacking etc. Interpersonal / behaviour skills H ere individuals are exposed to self-awareness programmes to develop the right me ntal attitude towards their job colleagues and the company. The main focus is on teaching the employer as to how to become a good team member and lead the compa ny. The T group training / sensitivity training are excellent programmes for the purpose. THE TRAINER The function of imparting training is by and large the responsibility of the HR department. The Director / General Manager/ Vice-President oversee the training calendar, and identify appropriate people, and allocate various training program mes to them. In organizations where the infrastructure is well developed, the HR managers may conduct the training programme by themselves or by inviting other resources people. A large group may then get trained at a time in such instances . In other occasions, employees are sent off the job to some specific programme organized by independent training agencies at a central location. Any organizati on can nominate its employees for Page 24

SUMMER INTERNSHIP 2010 the same. In this type, only a few people can get trained at a time, as many people cannot be off the job at the same time. A comprehensive and holistic training system would typically follow the followin g steps in devising and implementing a training plan as detailed below: A traini ng plan is jointly prepared by the HR department and the training head taking in to account various parameters such as the corporate goals / objectives, perspect ives of the top management, present and future training needs identified by the corporate office/branch / regional heads etc. After preparation of tentative tra ining plan, it is placed for consideration of the top management for approval. O n approval of the top management, a training calendar is prepared and is widely circulated among the branches / regions for information and dissemination. The b ranch/ regional heads nominate the employees for the training depending upon the ir training needs and also the job requirements. The training programmes are des igned optimally to encompass the theory with hands on experience and also to ens ure maximization of learning among the participants. The transfer of learning is to assist through performance measurement in the annual performance appraisal, which ultimately leads to feedback for the training system. In most of the centr al public sectors and some of the state-level public enterprises, the personnel department has identified a Manager (Training) whose specific responsibility is to manage the training needs of the employees of their organization. He and his team members organize the programmes in consultation with heads of department so that there is minimum overlap or clash with the daily routine work of the organ ization. Page 25

SUMMER INTERNSHIP 2010 A TRAINING PROGRAMME Training is most effective when it is planned, implemented and evaluated in a sy stematic way. Unplanned, uncoordinated and haphazard training efforts greatly re duce the learning that can be expected. Hence training efforts must aim at meeti ng the short-term (individual) and long-term (organizational) goals. This involv es conducting a preliminary assessment of training needs at various levels in th e organization. A specific training programme may be a result organizational, gr oup or individual requirements. A preliminary identification of the needs would help the organization to act in a proactive manner and realize its objectives. T herefore, we may consider identification of training needs at the following leve ls: 1. Organizational 2. Group 3. Individual TRAINING NEEDS AT THE ORGANIZATIONAL LEVEL Some basic assumptions regarding the training needs of an organization are liste d below: The organization has objectives to achieve for the benefit of stakehold ers employees, customers supplies and neighbors. These objectives can be achieve d only by harnessing the abilities of its employees and providing them opportuni ties to realize their full potential. Therefore, people must know what they need to learn in order to achieve organizational goals. Training needs at the organi zational level involve a study of the entire organization in terms of its object ives and resources, utilization of various resources interaction patterns in the environment, etc. most of the time, training needs address-specific problems in operation and through a training programme solutions are obtained. Page 26

SUMMER INTERNSHIP 2010 Such problems are related to productivity, high costs, poor material, control po or quality, excessive scrap grievances, high employee turnover, absenteeism, fat igue, failure to meet standards and targets etc. Often anticipating future probl ems like expansion of business, introduction of new products and new services, n ew plants and organizational changes concerned with manpower inventory for the p resent and future needs may also necessitate a training programme. The business environment and the political socio-cultural and technological factors and their influences in effective management might also prompt a training programme. Information about organization should be discussed with the top management and g aps in the realization of objectives can be determined by getting feedback from employees and conducting a survey. TRAINING NEEDS AT THE GROUP LEVEL An organization functions in a manner of high task interdependent and role relat ionships. Organizational structure determines the positions that the individual will occupy and the role relationships that are attached with it. While there is emphasis on individual effectiveness, group processes and dynamic go a long way in bringing cohesiveness among the employees. Hence managing subordinates, art of delegation, handling superiors, bringing about inter-group process dependency , providing feedback counseling mentoring and meeting the performance standards are some of the aspects that might prompt a training programme. Information in the above areas may be obtained by interacting with heads of the departments performance appraisals and conducting specific interviews with custom ers/suppliers etc. Page 27

SUMMER INTERNSHIP 2010 TRAINING NEEDS AT THE INDIVIDUAL LEVEL Training at the individual level may be required to improve performance modify d eviant or undesirable performance or behaviour or equip the individual with addi tional skills which will result in capacity building and utilization. This step is closely related to manpower analysis wherein the organization makes the asses sment of present and future skill requirements for the organization. Personal ob servation performance reviews supervisory reports diagnostic tests and self-evol ution help in collecting the required information and selecting particular train ing options that would improve the performance of employees. If there is a match between individual needs and organizational requirements and the employees are trained accordingly it would result in enhanced performance increased or satisfa ction and employee loyalty. In general any training program will aim at the following: Implementing (doing t hings well) for example meeting current organizational objectives. Improving (do ing things better) for example setting higher objectives and trying to reach the m. Innovating (doing new and better things) for example changing objectives and strategies. It is then obvious that identification of training needs may be prompted by one or a combination of these aspects internal or external factors the processes or relationships the functional heads or HR managers, external influences like majo r technological or environmental changes and budgetary and time constraints Page 28

SUMMER INTERNSHIP 2010 3.3 TRAINING OBJECTIVES IN INSURANCE SECTOR In insurance sector, the need to be well trained assumes gigantic proportions. A unique feature as regards insurance is that it is not merely sufficient to have a properly trained workforce; there is a need to spread the message of insuranc e among the populace. The above, to a great extent, depend on the knowledge abil ity of the Sales Managers on account of the interface that they are required to maintain with all the prospects. The best of advertisements and other forms of s preading message would be no substitute for a job well done by the intermediary. The Sales Managers are the public face of the insurance company and make the mos t enduring impact on the customer. The prospective policyholders today need prof essional inputs from intermediaries whom they can trust and respect. Therefore, the undeclared objective behind training the Sales Managers is their professiona lization, making them capable of good selling and thus ultimately benefitting the customer. Need analysis, features and benefits, objection handling and closing s kills are the key components of quality insurance sales training. When organization has invested in some training, how do we know if it has a succ ess? Our gut feeling might be that skills and practice have improved. But in wha t ways and by how much has it improved, and did organization get value of money? Answers to these questions can be found by doing evaluation The evaluation of training forms the remaining part of the training cycle which starts with the identification of training needs, establishing objectives and co ntinues through to the design and delivery of the training course itself. Page 29

SUMMER INTERNSHIP 2010 It is the function of evaluation to assess whether the le arning objectives originally identified have been satisfied and any deficiency r ectified. It is part of a continuing management process consisting of planning, implementation and evaluation; ideally with each following the other in a contin uous cycle until successful completion of the activity. 3.4 EVALUATION OF TRAINING Evaluation process must start before training has begun and continue throughout the whole learning process. Donald Kirkpatrick developed four level models to as sess training effectiveness. According to him, evaluation always begins with lev el first and should move through other levels in sequence. KIRK PATRICK MODEL The four-levels Kirk Patrick evaluation consist of o o o o Reaction - how the learners react to the learning process Learning - the extent to which the learners gain knowledge and skills Behavior - capability to perform the learned skills while on the job Results - includes such items as monetary, efficiency, moral, etc. The chart below shows how the evaluation process fits together: Page 30

SUMMER INTERNSHIP 2010 Page 31

SUMMER INTERNSHIP 2010 KIRK PATRICK MODEL LEVEL ONE - REACTION Evaluation at this level measures how the learners react to the training. This level measures one thing: the learner s perception (reaction ) of the course. Learners are often keenly aware of what they need to know to ac complish a task. If the training program fails to satisfy their needs, a determi nation should be made as to whether it s the fault of the program design or deli very. The interest, attention and motivation of the participants are often criti cal to the success of any training process -- people often learn better when the y react positively to the learning environment by seeing the importance of it. " Reaction may best be considered as how well the trainees liked a particular trai ning program". However, the less relevance the learning package is to a learner, then the more Page 32

SUMMER INTERNSHIP 2010 effort that has to be put into the design and presentatio n of the learning package. That is, if it is not relevant to the learner, then t he learning package has to "hook" the learner through slick design, humor, games , etc. This is not to say that design, humor, or games are unimportant; however, their use in a learning package should be to promote or aid the "learning proce ss" rather than the "learning package" itself. And if a learning package is buil t of sound purpose and design, then it should support the learners in bridging a performance gap. LEVEL TWO - LEARNING This is the extent to which participants change attitudes, improve knowledge, and increase skill as a result of participa ting in the learning process. It addresses the question: Did the participants le arn anything? The learning evaluation requires some type of posttesting to ascer tain what skills were learned during the training. In addition, the posttesting is only valid when combined with pre-testing, so that you can differentiate betw een what they already knew prior to training and what they actually learned duri ng the training program. Measuring the learning that takes place in a training p rogram is important in order to validate the learning objectives. Evaluating the learning that has taken place typically focuses on such questions as: o o o What knowledge was acquired? What skills were developed or enhanced? What attitu des were changed? LEVEL THREE - PERFORMANCE (BEHAVIOR) This evaluation involves testing the capabi lities to perform learned skills while on the job, rather than in the classroom. Level three evaluations can be performed formally Page 33

SUMMER INTERNSHIP 2010 (testing) or informally (observation). It determines if t he correct performance is now occurring by answering the question, "Do people us e their newly acquired learning on the job?" In Kirkpatrick s original four-leve ls of evaluation, he named this level as "behavior." However, behavior is the ac tion that is performed, while the final result of the behavior is the performanc e. Performance has two aspects behavior being the means and its consequence bein g the end. If we were only worried about the behavioral aspect, then this could be done in the training environment. However, the consequence of the behavior (p erformance) is what we are really after can the learner now perform and produce the needed results in the working environment? It is important to measure perfor mance because the primary purpose of training is to improve results by having th e students learn new skills and knowledge and then actually applying them to the job. Learning new skills and knowledge is no good to an organization unless the participants actually use them in their work activities. Since levelthree measu rements must take place after the learners have returned to their jobs, the actu al Level three measurements will typically involve someone closely involved with the learner, such as a supervisor. LEVEL FOUR - RESULTS This is the final results that occur. It measures the train ing program s effectiveness, that is, "What impact has the training achieved?" T hese impacts can include such items as monetary, efficiency, moral, teamwork, et c. As we move from level one to level four, the evaluation process becomes more difficult and time-consuming; however, the higher levels provide information tha t is of increasingly significant value. Perhaps the most frequently type of meas urement is Levelone because it is the easiest to measure, yet it provides the le ast valuable data. Measuring Page 34

SUMMER INTERNSHIP 2010 results that affect the organization is considerably more difficult, thus it is conducted less frequently although it yields the most val uable information. The first three-levels of Kirkpatrick s evaluation Reaction, Learning, and Performance are largely "soft" measurements; however, decision-mak ers who approve such training programs, prefer results (returns or impacts). 1) Reaction informs you how relevant the training is to the work the learners perfo rm (it measures how well the training requirement analysis processes worked). 2) Learning informs you to the degree of relevance that the training package worke d to transfer KSAs from the training material to the learners (it measures how w ell the design and development processes worked). 3) The performance level infor ms you of the degree that the learning can actually be applied to the learner s job (it measures how well the performance analysis process worked). 4) Impact in forms you of the "return" the organization receives from the training. Decisionmakers prefer this harder "result," although not necessarily in dollars and cent s. For example, a recent study of financial and information technology executive s found that they consider both hard and soft "returns" when it comes to custome r-centric technologies, but give more weight to non-financial metrics (soft), su ch as customer satisfaction and loyalty. We may note the difference between "inf ormation" and "returns." That is, the first threelevels give us the "information " for improving the learning package. While the fourthlevel gives us the "return s" for investing in the learning process. A hard result is generally given in do llars and cents, while soft results are more informational in nature. There are exceptions. For example, if the organizational vision is to provide learning opp ortunities (perhaps to increase retention), then a level-two or level-three eval uation could be used to provide a soft return. Page 35

SUMMER INTERNSHIP 2010 3.4.1. OBJECTIVES DPLI spends a huge amount on the induction & training of a SM through Launch Pad Process. Various research reports shows that attrition rate in the insurance in dustry is very high. The main reason for such a high rate of attrition can be la rge-scale poaching in a competitive environment. So it is necessary for the insu rance companies to groom their newly appointed officers in an effective manner. The underlying premise for training of Sales Managers is that, it can not only h elp in improving productivity of Sales Managers but also can enhance the overall satisfaction level of Sales Managers and reduce the attrition level. So for a company to retain its Sales Managers becomes the top priorty, a well de signed training can be one of the tools to achieve this. Therefore it becomes on e of the competitive tools for a company to distinguish itself from rest of the companies. Therefore, we have analyzed the effectiveness of training program conducted for Sales Managers and also calculated the Return on Investment for the first 30 day s of the Launch Pad training Process. Page 36

SUMMER INTERNSHIP 2010 THE MODEL IMPLEMENTED Page 37

SUMMER INTERNSHIP 2010 3.4.2. METHODOLOGY Theoretical Study was attempted. The relevant data was collected from both prima ry sources and secondary sources. The starting point of my information gathering has been the secondary sources such a s data available with the company. First, we made a study of the content of the training program and then interacte d with some of the Sales Managers already working for the company and took a feedback o n the Launch Pad training. I also interacted with some of the Trainers already w orking for the company and took a feedback on how the training was conducted. The scope of Level1 was all the regions of DPLI. Collection and compilation of f eedback from secondary data available with DPLI for the first level i.e. Reactio n Stage .Data was collected by the Training department when training actually ha ppened (about quality of the content of the training material and its effectiven ess, the trainers skills, Infrastructure) (see annexure1). For Level 2: The scope was all the regions of DPLI. Collection and compilation o f secondary data available with DPLI for the second level i.e. Learning Stage. T o check the knowledge level of the SMs, trend in the Exit scores was checked (see annexure 2) To check the skill level of the SMs, Assessment Scores of the Sales Managers after Launch Pad1 i.e. on 7th day of training given by Trainer was comp ared with Assessment 2 given after Launch Pad 3 i.e. 30 days of training by Regi onal Manager) and the trend was checked. (See annexure 2). Page 38

SUMMER INTERNSHIP 2010 For the 3rd level i.e. Change in Skill Set: The data was collected through a structured questionnaire with a set of question s asked to the MPs. The questions were regarding the skills the SMs have developed through training i.e. (after 30 or 60 or 90 days of training as per th e joining of the person) and the score was compared with LP-3 and finally a tren d was drawn for training effectiveness (see annexure 3). Observation was done by going on Sales and Recruitment Calls with a Sample of Sales Managers whos feedba ck has already been taken from the MPs regarding the skills they have developed t hrough training (after 30 or 60 or 90 days of training as per the joining of the person) and would be compared with LP-3 and finally a trend would be drawn for training effectiveness (see annexure 3). The scope of Level 3 was restricted to Delhi and Chandigarh for convenience sampling. For the 4th level i.e. Results data would be collected by: Comparison of product ivity of the Sales Managers who joined in JFM 2009 with the productivity of the Sales Managers who joined in JFM 2010 Sales Managers who had undergone revised tr aining. (See annexure 4). Comparison of productivity of the Sales Managers who j oined in OND 2009 with the productivity of the Sales Managers who joined in JFM 2010 Sales Managers who had undergone revised training. (See annexure 4). Compari son of the number of LA coded per SM man month achieved done by Sales Managers w ho joined in JFM 2009 with the number of LA coded per SM man month achieved done by Sales Managers who joined in JFM 2010 who had undergone revised training. (S ee annexure 4). Page 39

SUMMER INTERNSHIP 2010 Comparison of the number of LA coded per SM man month ach ieved done by Sales Managers who joined in OND 2009 with the number of LA coded per SM man month achieved done by Sales Managers who joined in JFM 2010 who had undergone revised training. (See annexure 4). Comparison of attrition rate of th e Sales Managers (i.e. JFM 2009) with the Sales Managers who had undergone revise d training for JFM (2010) was done (see annexure 4). Comparison of attrition rate of the Sales Managers (i.e. OND 2009) with the Sale s Managers who had undergone revised training for JFM (2010) was done (see annexure 4) For the 5th level i.e. Return On Investment: The data of the costs required for the training will be collected from secondary sources (the bills that have been passed i.e. the actual cost incurred by the company for the training) .This incl udes training cost ,travelling expenses, venue expenses, books & printing cost, trainers salary for 10 days, SMs salary for 10 days. The return on investment has been calculated i.e. Average APE generated by an SM per rupee spent on the training (see annexure 5). Page 40

SUMMER INTERNSHIP 2010 3.4.3 ANALYSIS AND FINDINGS Through the above mentioned procedure, the following are the findings: LEVEL 1: The Average feedback Scores for Jan and Feb is 4.7 out of 5, which is very good. For March the feedback score has fallen to 4.5, which is also good, but the tre nd is falling and that has to be figured out. By doing a detailed analysis it wa s found out that in almost all the sessions the scores has dropped. LEVEL 2: First I checked whether there is any improvement in LP-3 from LP-1 .For this there was no clear trend. Then I tried to check is the rating given in LP1 more. Even this was not the trend I even tried to check the trend region wise and also trainer wise. There is no exact trend in the i.e. when we try to compare LP-1 and LP-3 scores. Out of a sample of 80 SMs, 37 SMs have improved and shows a positive change. 7 SMs show no change and 36 SMs show a negative change. This was a mixture of all regi ons and there is no clear pattern. LEVEL 3: There was a clear cut improvement in the SMs understanding and level fro m LP-3 to the time assessment was done by the MP when the SM was 30-90 days old in the system. This was even observed by me on Sales and recruitment calls. Page 41

SUMMER INTERNSHIP 2010 OBSERVATIONS BASED ON CALLS AND ANALYSIS: CHANDIGARH: STRENGTHS IMPROVEMENT AREAS Page 42

SUMMER INTERNSHIP 2010 DELHI: STRENGTHS IMPROVEMENT AREAS Page 43

SUMMER INTERNSHIP 2010 LEVEL 4: LA Recruitment has increased by 300% from JFM 09 to JFM 10 and increase d by 180% from OND 09 to JFM 10. SM Productivity per Man Month has increased by 64% from OND 09 to JFM 10. Attrition levels after launch pad process within 60 d ays has reduced by 3% from OND 09 to JFM 10 and increased 1% from JFM 09 to JFM 10. The reasons for Sales Managers attrition were: Background Verification Change/Better Opportunities Non Productive Partiality/Office Politics t Helpful Page 44 Industry Manager No

SUMMER INTERNSHIP 2010 3.4.4 RECOMMENDATIONS: LEVEL 1: 1. Separate Launch Pad Sessions for Insurance & Non Insurance Candidate s 2. Strengthen product and sales process training by way of case studies and mo re practical training 3. Feedback scores should be shared with the trainers and the RCDMs for developmental action. LEVEL 2: 1. SM Tracking is unique to DPLI. Ho wever it would help if there is more uniformity in the process of evaluation 2. The expectation level of Regional Managers and the Trainers has to be the same. 3. There should be more clarity in the way we use the rating system. LEVEL 3: 1. MP should evaluate the person who is aspiring to become a LA and should give a rating for LAs business potential 2. MPs should conduct weekly review of the cal ls done by the SMs. 3. Telephones and dedicated space should be assigned for LAs i n the branch as lack of it is not motivating the LAs to come to the branch 4. The ability of the MP/AP should improve in terms of having an open discussion with the SM, because whatever is perceived important to the MP should be considered i mportant to the SM as well. 5. Calls should be continued by the AP/MP, with the SM ,if even after 60 days he is not able to earn 12000 as commission Page 45

SUMMER INTERNSHIP 2010 3.4.5 CONCLUSION The data clearly suggests that investment in training, in spite of attrition is yielding a positive ROI (151%) and the current investment should be sustained, w ith the improvements and the recommendations suggested. 3.4.6 LIMITATIONS Sampling errors might have occurred There was a difficulty in going on calls wit h the Sales Managers because of several reasons like customer not responding, ch ange in timings given by customer. Some of the SMs do not want to fix calls becau se they do not use the tools recommended. The responses of the Managing Partners , Associate Partners may not be genuine. The questions included in the questionn aire may not be comprehensive The sales managers behaviour and the way he handles a call would have changed in assisted sales/recruitment calls Page 46

SUMMER INTERNSHIP 2010 4. NOTES: 1. Kirkpatrick, D. (1996). Great ideas revisited. Training and Development, 50(1 ), 54-59. 2. Kirkpatrick, D. (1994). Evaluating graining programs: the four levels. San Fr ancisco:Berrett-KochlerPublishers,Inc. 3. Parry, S. (1996). Measuring training s ROI. Training and Development, 50(5), 7277. 4. Phillips, J. (1997). Return of investment in training and performance improve ment programs. Houston: Gulf Publishing Company 5. http://leanlearning.wikispaces.com/learning analytics Other references BOOKS 1. Blanchard, P. Nick , Thacker, James W. , May 2006, Effective Training: System s, Strategies And Practices, Prentice Hall 2. Ford, Kevin, Goldstein, Irwin L. , Goldstein David S, 2001, Training In Organizations: Needs Assessment, Development, And Evaluation ,Wadsworth Publishi ng Company 3. Aswathappa, K, 2003, Human Resource Management Text and Cases, Tat a McGraw Hill Publishing Ltd. 4. Jyothi P. and Venkatesh, D.N., 2006, New Delhi, Human Resource Management, Oxford University Press 47

SUMMER INTERNSHIP 2010 5. GLOSSARY 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 2 3. 24. 25. 26. DPLI SM MP AP ROI LA RM CDM LP-1 LP-3 BVF ASM SSM APE YTD JFM OND PFS JFC SP CAS SN NAF MM R&R AML DLF Pramerica Life Insurance Sales Manager Managing Partner Associate Partner Re turn On Investment Life Associate Regional Manager Capability Development Manage r Launch Pad 1 Launch Pad 3 Background Verification Associate Sales Manager Seni or Sales Manager Annual Premium Equivalent Year To Date January, February, March October, November, December Partnering For Success Joint Field Calls Sales Pres enter Candidate Assessment Sheet Social Networking Need Analysis Form Man Month Rewards & Recognition Anti Money Laundering 48

SUMMER INTERNSHIP 2010 7. ANNEXURES ANNEXURE 1 Launch Pad Feedback given by Sales Managers Level 1 Launch Pad Training Feedback National Update - Jan 10 Training Dates Over all Ergonomics Score Over all Faculty Score Over all Orienta tion Score Over all Sales Process Score Over all Score Product Session Average S cores 4.7 4.9 4.7 4.7 4.6 Top Box Rating 74% 86% 84% 80% 78% Over All Launch Pad Score 4.7 Description Ergonomics Infrastructure, other facilities Total 57 Scores 4.6 Top Box 70% Top 2 Box 93% 49

SUMMER INTERNSHIP 2010 Training Schedule / Duration Training Co-ordination & Organization Training Envi ronment Course Material, Assignments (if any) How comfortable was the trainer wi th the topic being discussed? How well did he make you understand / learn the co ncept Faculty Was he able to resolve your queries / questions Was he able to kee p the group interested through the training Were you comfortable with the pace o f the sessions Did he make you confident to implement the skills / knowledge lea rnt DLF Pramerica as an organization & career prospects Orientation Understandin g your role Evangelizing Life Insurance HR Policies & procedures Prospecting Tec hniques Sales Process Approach and Objection Handling Need Analysis Form Closing Basic Product Terminologies Financial Basics Session on Products Rupee Cost Ave raging & SIP Term Plan ULIP & AML 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 4.6 4.7 4.7 4.7 4.9 4.9 4.8 4.9 4.8 4.9 4.8 4.7 4.7 4.5 4.7 4.7 4.8 4.7 4.6 4.5 4.7 4.7 4.6 74% 72% 75% 77% 91% 88% 86% 86% 81% 86% 75% 68% 72% 56% 75% 72% 79% 74% 67% 60% 74% 77% 70% 91% 98% 98% 95% 98% 98% 98% 100% 100% 100% 100% 98% 98% 93% 98% 96% 96% 96% 96% 91% 95% 96% 93% 50

SUMMER INTERNSHIP 2010 Description Infrastructure, other facilities Average Scores 3.9 4.4 4.6 4.6 4.5 4.6 4.9 4.8 4.8 4.9 4.8 4.9 4.8 4.8 4.8 4.8 4 .5 4.8 Top Box Ratings 34% 62% 67% 76% 66% 72% 93% 86% 87% 88% 84% 92% 84% 86% 86% 78% 55% 80% Top 2 Box Ratings 67% 83% 89% 88% 88% 91% 96% 97% Month Ergonomics Training Schedule / Duration Training Co-ordination & Organization Training Envi ronment Course Material, Assignments (if any) Subject Coverage How comfortable w as the trainer with the topic being discussed? How well did he make you understa nd / learn the concept Was he able to resolve your queries / questions Was he ab le to keep the group interested through the training Were you comfortable with t he pace of the sessions Did he make you confident to implement the skills / know ledge learnt Over All Impression DLF Pramerica as an organization & career prosp ects Reward & recognition platforms? Insurance terminologies and work habits? HR Policies & procedures? How to use sales presenter? Feb-10 Faculty 96% 97% 96% 99% 99% 99% 99% 99% 95% 99% Sal es Pr Orientation oce ss 51

SUMMER INTERNSHIP 2010 How to use need analysis form? How to pitch DPLI product to the customer? Basic Product Terminologies 4.8 4.8 4.7 4.7 4.8 4.8 4.7 4.8 4.8 4.7 4.8 4.9 4.7 4.2 4.2 4.5 4.5 4.4 4.3 4.7 4.2 4.6 4.4 4.4 78% 80% 70% 74% 80% 79% 70% 80% 78% 76% 79% 87% 77% 41% 45% 59% 55% 52% 45% 66% 41% 62% 59% 59% 99% 97% 96% 97% 100% 97% 96% 96% 99% 97% 96% 99% 95% 86% 79% 97% 97% 90% 90% 100 % 83% 97% 93% 83% Session on Products Over Recruitment All Ergonomics Financial Basics Family First Future Idol Plus Super Wealth Plus My role as a sa les manager? Recruitment Process? Ideal profile of a Life Associate? How to pitc h agency as a carrier? On the whole, the training program was Infrastructure, other facilities Training Schedule / Duration Training Co-ordina tion & Organization Training Environment Course Material, Assignments (if any) S ubject Coverage How comfortable was the trainer with the topic being discussed? Mar-10 Faculty How well did he make you understand / learn the concept Was he able to resolve y our queries / questions Was he able to keep the group interested through the tra ining Were you comfortable with the pace of the sessions 52

SUMMER INTERNSHIP 2010 Did he make you confident to implement the skills / knowledge learnt Over All Im pression 4.7 4.6 4.7 4.7 4.5 4.4 4.7 4.6 4.4 4.4 4.4 4.2 4.5 4.4 4.4 4.3 4.4 4.4 4.5 4.5 66% 66% 72% 69% 59% 59% 69% 66% 48% 48% 48% 45% 59% 55% 48% 45% 55% 52% 55% 56% 100% 93% 100% 97% 93% 90% 97% 93% 90% 90% 90% 83% 93% 86% 93% 93% 90% 93% 97% 92 % Orientation Sales Process Session on Products Over Recruitment All DLF Pramerica as an organization & career prospects Reward & recognition platfor ms? Insurance terminologies and work habits? HR Policies & procedures? How to us e sales presenter? How to use need analysis form? How to pitch DPLI product to t he customer? Basic Product Terminologies Financial Basics Family First Future Id ol Plus Super Wealth Plus My role as a sales manager? Recruitment Process? Ideal profile of a Life Associate? How to pitch agency as a carrier? On the whole, th e training program was 53

SUMMER INTERNSHIP 2010 Table 1: Total No of Sales Managers Month Jan Feb Mar No Of Participants Taken 57 76 29 Graph 1: Overall Training Feedback (Average Scores Out Of 5) 54

SUMMER INTERNSHIP 2010 Graph 2: TREND IN AVERAGE SCORE (FOR DIFFERENT SESSIONS IN THE TRAINING) The rating was above 75% for all 3 months 55

SUMMER INTERNSHIP 2010 Table 2: FINDINGS FOR TRAINING EFFECTIVENESS Topics For S.NO. Training Effectiveness How comfortable 1. was the trainer with the topic being discussed Standard Deviation 0.62 Calculated Values Averages 4.7 4.89 4.65 Jan Feb March 0.41 0.48 So this clearly shows that in Feb the trainer was the most comfortable followed by March and then Jan. How well did the trainer make the 2. Sales Manager unders tand / learn the concept Standard Deviation 0.39 0.51 0.74 Averages 4.85 4.81 4. 24 So this clearly shows that in Jan the trainers were the best in making the SM lea rn the concept followed by Feb and then March. 56

SUMMER INTERNSHIP 2010 Was the trainer 3. able to resolve the queries / question s Averages 4.84 4.82 Standard Deviation 0.41 0.47 0.56 4.58 So this clearly shows that in Jan the trainers were the best in resolving the qu eries followed by Feb and then March. Did the trainer make you 4. confident to i mplement the skills / knowledge learnt So this clearly shows that in Feb the tra iners were the best in making the SMs implement the knowledge learnt followed by Jan and then March. Averages Session on how to use a NAF 4.76 4.69 Standard Devi ation 0.504 0.501 0.627 4.58 Standard Deviation 0.35 Averages 4.86 4.9 4.65 0.33 0.48 5. 57

SUMMER INTERNSHIP 2010 So this clearly shows that in Jan the trainers were the b est in conducting the session on NAF followed by Feb and then March. Session on Basic 6. Product Terminologies Averages 4.64 4.66 4.37 Standard Deviation 0.55 0.55 0.67 So this clearly shows that in Jan the trainers were the best in conducting the s ession on basics of product terminologies followed by Feb and then March. Averag es 7. Session on Financial Basics Standard Deviation 0.66 4.51 4.72 4.37 0.50 0.67 So this clearly shows that in Feb the trainers were the best in conducting the s ession on financial basics followed by Jan and then March. 58

SUMMER INTERNSHIP 2010 ANNEXURE 2 Table 3: For testing the knowledge level of the SMs Level 2 Median Score Exit Test No of candidates evaluated: 190 Month LP-1 JFM JAN FEB MARCH 17 17 17 18 86% of the Sales Managers have scored above 75% marks in the exit test 59

SUMMER INTERNSHIP 2010 Table 4: For testing the skill level of the SMs Median Score Assessment Scores No of candidates evaluated: 80 Month LP-1 LP-3 JFM JAN FEB MARCH 3.2 2.5 3.4 3 3 3 3 3 60

SUMMER INTERNSHIP 2010 Graph 3: TREND IN LP-1 AND LP-3 SCORES REGION WISE 61

SUMMER INTERNSHIP 2010 Graph 4: TREND IN LP-1 AND LP-3 SCORES TRAINER WISE With this data in hand, unable to comment, about the skill level of the Sales Ma nagers 62

SUMMER INTERNSHIP 2010 Graph 5: Trend for 80 participants 63

SUMMER INTERNSHIP 2010 Graph 6: The Change in level of scores from LP-1 to LP-3 There was a change in score from as high as 1.8 to as low as -2.2 64

SUMMER INTERNSHIP 2010 ANNEXURE 3 Questionnaire for MPs Level 3 DLF Pramerica Life Insurance Company Feedback of the Sales Managers from the Man aging Partner after 30 days of Launch Pad Training Kaizen means "improvement". K aizen involves never ending effort for improvement involving everyone in the org anization (To be filled by MP) MP Name From: Region & Branch Name Period Sales M anager Name To: LP-1,Field Work and LP-3 This is an objective feedback exercise on the change in skills of the Sales Mana gers after 30 days of Launch Pad. Your feedback is valuable for continuous impro vement 65

SUMMER INTERNSHIP 2010 Kindly give your ratings for the Sales Manager on the following parameters Ability to Introduce DPLI using a Sales Presenter Unable to use SP at all Unable to clearly read content of Sales Presenter Could read content of SP clearly: unable to expand on contents. Able to use sales presenter and build cohesive story but unable to handle object ions. Ability to conduct a Need Analysis with the customer Unable to introduce NAF & Tick top 2 priorities. Unable to connect money commitm ent to products Unable to put down 20 names with Phone Nos in a list. Able to build rapport & introduce NAF, Tick top 2 priorities. Able to take priorities and complete all relevant calculations. Was able to pitc h product benefits connected with identified priorities in NAF Able to list down 20 names, connect with LA Selection Criteria. Could do all calculations and link back to priorities & money commitment. Used the sales presenter easily and use it creatively for rapport building & Obj ection handling. Seamless transition from SD to NAF and completes in an effortle ss, conversation manner. Was able to pitch multiple products in combo sales usin g NAF Is able make approach call to prospect list, Handle objections and invite them to office. Ability to pitch DPLI product to the customer Begins product pitch no connect to NAF or priorities. Was able to pitch product connected with priorities & Handle Objections Ability to make a prospective list of Life Associate s Able to list down 20 names with Phone Nos, but no connect with LA Selection Crite ria. Is able make approach call to prospect list 66

SUMMER INTERNSHIP 2010 Unable to list any benefits of Agency Business >10 errors Ability to pitch agency as a career Able to state clearly 5 reasons why to become a LA Between 8 - 10 Able to Match Correct Value Proposition to LA s Aspirations Between 4 - 7 Matches Correct Value Proposition to LA s Aspirations& pitches for the long term . Between 0-3 Match Correct Value Proposition and pitches business expectations & work habits. No errors Ability to log in a complete non discrepant application form Understanding of the R&R and incentives post discussion Unable to explain incentive earning and R&R Able to explain incentive parameters but could not calculate his monthly incenti ve earning Approach() Give No s Understand incentive parameters and can calculate monthly incentive earning PFS CAS & SN 100 () Give No s Understand incentive parameters and does back calculation of input required to e arn desirable incentive MP Interview() Give No s Designs a work plan based on his understanding of incentive structure and works according to it to achieve desirable results Coding() Give No s What is the Input Tracker for the recruitment after JFC What is the Input Tracke r for the sales after JFC Name Gathering () Give No s Calling Meeting Presenting Closing Referrals 67

SUMMER INTERNSHIP 2010 Table 5: Feedback by the MPs and APs of Chandigarh Branch for Sales Managers who j oined after December 2009 and who have undergone 30 days of training. Introduce the company using Sales Presenter 5 5 5 5 4 5 5 4 5 4 4.70 Do a Need Analysis with the customer 2 2 2 3 5 5 5 3 4 3 3.40 Match the needs to the products 5 5 5 5 5 5 5 3 3 3 4.40 Identify an ideal life associate 5 5 5 5 5 5 5 5 5 5 5.00 Pitch agency as a career 3 3 3 4 4 5 5 3 3 3 3.60 Errors in a form Understanding R&R Average 4 4 4 3 3 3 3 3 3 3 3.30 3 3 3 5 4 5 5 3 3 3 3.70 3.86 3.86 3.86 4.29 4.29 4.71 4.71 3.43 3.71 3.43 4.01 68

SUMMER INTERNSHIP 2010 Table 6: Feedback done by me of Chandigarh Branch for the Sales Managers who joi ned after December 2009 and who have undergone 30 days of training. Introduce the company using Sales Presenter 4 5 5 4 4 5 5 4 5 4 4.50 Do a Need A nalysis with the customer 2 4 3 3 3 5 5 3 4 3 3.50 Match the needs to the produc ts 3 3 4 4 3 5 5 3 3 3 3.60 Identify an ideal life associate 4 5 4 5 4 5 5 5 5 5 4.70 Pitch agency as a career 3 5 4 4 2 5 5 3 3 3 3.70 Errors in a form Understanding R&R Average 4 4 4 3 3 3 3 3 3 3 3.30 3 5 3 3 3 5 5 3 3 3 3.60 3.33 4.33 4.00 3.83 3.17 4.71 4.71 3.43 3.71 3.43 3.87 69

SUMMER INTERNSHIP 2010 Graph 7: Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by MP (60-90 days on the Job) 6 5 4.40 4 3.6 3 2 1 0 1 2 3 4 5 6 7 8 9 2.8 2.4 2.8 2.8 4 4 3.6 3.6 3 2.6 2.6 2 by MP 5 4.6 4 4 lp-3 70

SUMMER INTERNSHIP 2010 Graph 8: Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by Me by going on Calls (60-90 days on the Job ) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 1 2 3 4 5 6 7 8 9 4.00 3.6 2.8 2.4 2.8 3.2 2. 8 5 4.4 4.00 3.6 4 3.6 3.2 3 2.6 2.6 2 by Me lp-3 Inference: Sales Managers are using the Skills learnt in training on the Job 71

SUMMER INTERNSHIP 2010 Table 7: Feedback by the MPs and APs of Delhi Branches of Sales Managers who joine d after December 2009 and who have undergone 30 days of training. Introduce the company using Sales Presenter 4 4 3 4 5 3 5 3 5 5 4 5 3 3 5 4.00 Do a Need Analysis with the customer 3 4 4 3 4 2 5 3 5 2 4 4 4 3 5 3.57 Match the needs to the products 4 4 4 4 5 3 5 4 5 4 4 4 2 4 4 4.00 Identify an ideal life associate 4 3 3 5 5 3 5 5 5 5 4 3 5 3 4 4.14 Pitch agency as a career 4 4 4 4 5 3 5 5 5 5 3 3 2 2 5 3.86 Errors in a form Understanding R&R Average 4 4 3 4 5 4 4 5 5 4 4 3 4 3 4 4.00 3 4 5 4 5 3 4 5 5 3 3 4 2 2 5 3.71 3.83 3.83 3.71 4.00 4.86 3.00 4.71 4.29 5.00 4.00 3.71 3.71 3.14 2.86 4.57 3.90 72

SUMMER INTERNSHIP 2010 Table 8: Feedback done by me of Delhi Branch for the Sales Managers who joined after Dece mber 2009 and who have undergone 30 days of training. Introduce the company using Sales Presenter 5 5 3 4 5 3 5 5 5 4 4 5 4 3 5 4.3 Do a Need Analysis with the customer 3 4 4 3 4 2 4 4 5 2 4 4 4 3 5 3.7 Match the n eeds to the products 4 4 4 4 5 3 5 4 5 4 4 4 2 4 4 4.0 Identify an ideal life as sociate 4 4 3 5 5 3 5 5 5 4 4 3 4 3 5 4.1 Pitch agency as a career 4 5 4 4 5 3 5 4 5 4 3 3 5 2 5 4.1 Errors in a form Understanding R&R Average 4 4 3 4 5 4 4 4 5 4 4 3 4 3 5 4.0 3 4 5 4 5 3 3 3 5 3 3 4 2 2 5 3.6 4.00 4.33 3.50 4.00 4.86 3.00 4.67 4.33 5.00 3.67 3.83 3.67 3.83 3.00 4.83 4.03 73

SUMMER INTERNSHIP 2010 Graph 9: Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by MP (60-90 days on the Job) 6 5 4 lp-3 MP after 30/60/90 days 3 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 74

SUMMER INTERNSHIP 2010 Graph 10: Change in Skill Set (Comparison of Scores given in LP-3 (i.e. after 30 days of training) to scores given by ME by going on calls (60-90 days on the Jo b) 6 5 4 3 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 lp-3 Done by Me Inference: Sales Managers are using the Skills learnt in training on the Job 75

SUMMER INTERNSHIP 2010 Table 9: Average Scores Of the 9 SMs of Chandigarh and 15 SMs of Delhi on all the parameters asked in the questionnaire Region Introduce the company using Sales Presenter Do a Need Analysis with the c ustomer Match the needs to the products Identify an ideal life associate Pitch a gency as a career Errors in a form Understanding R&R Delhi 4.00 Chandigarh 4.70 National 4.35 3.40 3.48 4.40 4.20 5.00 4.57 3.60 3.73 3.30 3.65 3.70 3.70 3.57 4.00 4.14 3.86 4.00 3.71 76

SUMMER INTERNSHIP 2010 ANNEXURE 4: LEVEL 4 Graph 11: TRENDS IN SM PRODUCTIVITY: Average APE per man mon th done by an ASM/SM/SSM. This includes self sourcing and team business 77

SUMMER INTERNSHIP 2010 Graph 12: TRENDS IN LA Coded /SM MM Achieved 78

SUMMER INTERNSHIP 2010 Graph 13: TRENDS IN ATTRITION OF THE SALES MANAGERS WITHIN 30 DAYS OF JOINING 79

SUMMER INTERNSHIP 2010 Graph 14: TRENDS IN ATTRITION WITHIN 60 DAYS OF JOINING 80

SUMMER INTERNSHIP 2010 RESEARCH METHODOLOGY USED FOR LEVEL 3 AND 4 Chi-square test 2: It is the test for independen e. This tells us with onfiden e whether the rating given by the MP is predi tive of the number of LA oded by the SM. Null Hypothesis H0: Rating given by MP has no impa t on the number of LA oded b y the SM Alternate Hypothesis H1: Rating given by MP has impa t on the number of LA oded by the SM TABLE 10: RESULTS OF CHI-SQUARE Chi Square Value from the Table 5.99 Null Hypothesis Reje ted S.NO. Degrees of freedom Chi Square Value Cal ulated Chi Square Test 1. 2 9.25 So we an say with 95% onfiden e that Rating given by MP has impa t on the numb er of LA oded by the SM 81

SUMMER INTERNSHIP 2010 T-Test: To test the impa t (positive or negative), onfiden e intervals for the differen e between a pair of means Null Hypothesis H0: The mean of the Rating gi ven by MP for SMs who have oded 0 LAs is equal to the mean of the rating given by MP for SMs who have oded 1 LAs Alternate Hypothesis H1: Mean of the rating given by MP for SMs who have oded 0 LAs is less than the mean of the rating given by M P for SMs who have oded 1 LAs Null Hypothesis H0: The mean of the Rating given by MP for SMs who have oded 1 LAs is equal to the mean of the rating given by MP fo r SMs who have oded 2 LAs Alternate Hypothesis H1: Mean of the rating given by MP for SMs who have oded 1 LAs is less than the mean of the rating given by MP for SMs who have oded 2 LAs Null Hypothesis H0: The mean of the Rating given by MP fo r SMs who have oded 0 LAs is equal to the mean of the rating given by MP for SMs w ho have oded 2 LAs Alternate Hypothesis H1: Mean of the rating given by MP for S Ms who have oded 0 LAs is less than the mean of the rating given by MP for SMs who have oded 2 LAs 82

SUMMER INTERNSHIP 2010 TABLE 11: RESULTS OF T-TEST S.NO. No Of LAs Coded Between 1 and 2 LAs Coded Between 0 and 2 LAs Coded Between 0 and 1 LAs Coded T Value Cal ulated 0.056 0.048 T Value Criti al T- Test 1. 2. 3. 0.05 0.05 0.05 Null Hypothesis Reje ted Null Hypothesis Reje ted 0.95 Null Hypothesis Reje ted So it learly means that SMs who have oded 2 LAs have signifi antly higher mean r ating at 95% onfiden e level than people who have oded 0 LAs . SMs who have ode d 2 LAs have signifi antly higher mean rating at 90% onfiden e level than people who have oded 1 LAs Inferen e: This learly indi ates that the rating given by MPs is predi tive of the number of LAs a tually oded by the SM. 83

SUMMER INTERNSHIP 2010 ANNEXURE 5 TABLE 12: Cal ulation of the ROI LEVEL 5 Laun h Pad I Expenses Cost Per Parti ipant Laun h Pad III Expenses 10,594 Cost Per Parti ipant 4,910 Salary Expenses for SM for 10 days Salary Expenses for Trainer Cost per SM for 1 0 day LP Total Cost per SM 8,219 919 24642 Average APE Generated (SM Produ tivity/MM) Return On Investment(APE Per Rupee Sp ent In the Training) 84 37210 151%

SUMMER INTERNSHIP 2010 ANNEXURE 6 Organization Stru ture 85

SUMMER INTERNSHIP 2010 ANNEXURE 7: DPLIs Growth Plans Jammu Hima hal Pradesh Punjab Uttaran hal Uttar Pradesh Rajasthan Del NCR Haryana Gujrat Existing Lo ations New Lo ations in 2010 Kerela 86