A

PROJECT REPORT ON
STUDY OF HR POLICIES
AT
LIFE INSURANCE CO-OPERATION
OF INDIA,

IN PARTIAL FULFILLMNET OF
MASTER IN BUSINESS ADMINISTRATION
( UNIVERSITY OF PUNE)

SUBMITTED BY
MISS KHUSHBU RANI SINGH
MBA-II(HRM)

PROJECT GUIDE
MRS. KHAIRE MAAM

MAHATMA GANDHI VIDYAMANDIRS

INSTITUTE OF MANAGEMENT AND RESEARCH
NASHIK.

ACKNOWLEDGEMENT
This report entitle STUDY OF H.R. POLICIES of organization.It is the
outcome of summer internship training at Life insurance cooperation of
India
I wish to express my gratitude to Mr.
For providing me an opportunity to carry out my summer project in this
esteemed organization.
This report is the result of contribution,guidance and co-operation received
from all the executive of various department of LIC COMPANY DHULE.,our
college authority and my family members also both implicitly and
explicitly,never can this report can be claimed as individual effort.
I profusely thanks my project guide MRS KHAIRE MAAM for her guidance
through out the project work
I owe my sincere thanks to all those who helped me during my summer
internship project work and took special efforts to see that I could learn as
much as possible during the visit. Finally work alone cannot express and also
thanks to everyone who gave their valuable time,skill and enthusiasm and to
all who have offerd support and understand to make this project work a
success.

Khushbu rani singh

CONTENTS
CHAPT
ER

TOPICS

1
1.1
1.2
1.3
1.4
1.5

Introduction

2
2.1
2.2
2.3

Profile of the organization

3
3.1
3.2
3.3
3.4
3.5
3.6

Related theory

Data analysis &

interpretation

4.1
4.2

Data analysis and interpretation

Finding and conclusion

Recommendations and
suggestion

6
6.1
6.3

Annexure

Object of project
Objective of study
Methodology of study
Scope of study
Limitations of the study

History of the organisation

Product of organization
Organization chart

Human resource management

Human resource policies
Objective of H.R. policies
Characteristics of H.R. policies
Formulation of H.R policies
The policies which are conducted by
organization

Reference
Appendices

PAGE NO.

DECLARATION

I Khushbu rani singh hereby declare that the project report entitled TO
STUDY H.R. POLICIES .
Is a genuine work done at LIC of India .The project is undertaken as a part of
research project accomplished for the fulfillment of the MBA.
The matter embodies in this project report has not been submitted else where
by anybody for the award of any other degree or diploma

Date:
Place:

(Khushbu rani singh)

CHAPTER: 1

INTRODUCTION

1.1) Object of the project

Summer training is an integeral part of MBA programs which extends to 60

days. The primary objective of the project carried out in Master in Business
Administration is to gt a first-hand experience of business world,gain an
insight in to the working of corporate world and develop our management
skills. Thus ,it gives opportunity for the student to understand the working of
an organization and to know the challenges involove in it, this help him/her to
co-relate the theory part in the MBA course with the actual working
environment of the industrial orginastion.
We are required to complete the project to the fullest satisfaction of the
organization concerned and submitted a detail report to the concerned to the
concerned authority. It include number of activities to be performed by the
student like-selection of topic, collection of relevant data, and presentation of
the data in systematic manner to find out a logical conclusion.

1.2) OBJECTIVES OF THE PROJECT

To study the existing h.r. policies of LIC Of India

To design the new h.r policies and procedure for LIC Of India.

1.3) Research methodolgy

Research :
Research is a common parlance refers to a search for knowledge .one can also
define research as a scientific and systematic search for pertienent
information on a specific topic .Reserach is an academic activity and as such
term should be used in a technical sense.According to Clifford
woody research comprise defining and redefining problems ,formulating
hypothesis or suggested solutions,collecting.Organization and evaluating data;
and last carefully testing the conclusions to
determine whether they fit the formulating hypothesis .
Research methodology is a way to systematically solve the research problem
.It may be he understood as a science of studying how research is done
scientifically .In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the
logic behind them.
The scope of researchmethodolgy is wider than of research methods .Thus
when we talk of research methodology we not only talk of the research
methods but also consider the logic behind the method we used in the context
of our research study and explain why we are using a evaluate either by the
researcher himself or by other.
Every project is carried out with some specific OBJECTIVE in the mind
.Objective Is basically the purpose behind conducting a project and unless the
objective of the project are nothing but what is to understood what data has to
be collected .Objective of the project are nothing but what is to learned out of
this project report .Research methodology is a systematic way of solving the
research problem .It may be understood as a science of studying how
research is done specifically .
In it I study the various steps that are generally adopted by research in
studying his/her research problem along with the logic behind them.Research
not only know how to develop certain tests how to apply particular research
technique but they need to know which of the mehds are relevant and which
are not .A researcher will always need to know the criteria by which they can
decide techniques and problems will be applicable to certain problems.
So it is very important to understand research methodology before
proceeding further for collecting data for a project work.As this project explain
the H.R.policies in the organization .It is very important to explain what are
source of data ,Which is been collected ,analyse and presented to come out
with useful suggestion and recommendation.
Mainly the data has been collected from HRD Department of ADHUNIK
TRANSPORT ORGANIZATIOns and the persons enities that provided this
primary as well as secondary data is HR officer.
Mainly the data has been collected from HRD department of
And the persons entities that this primary ae well as secondary data is HR
officer.
Now the data collected from the above personnel is:

1] PRIMARY DATA
2] SECONDARY DATA

PRIMARY DATA
Discussions, informal interview of the above mentioned personnel revealed
lot much data,which was first hand. The data collection method can come out
with good quality data and also the non- verbal communication here plays an
important roles as the information provider reveals the information to you in
personal.
In this project data is collected by questionaries survey.

SAMPLING PLAN
Sample technique : convenience sampling
Sample size : 60
Field of study :
Durations : 60

SECONDARY DATA
This is the data , which is provided by the above mentioned personnel but
the main point of differentatios is about the way of delivering the data. This
data is already collected and stored by the organization and made available to
its employee as well as to the outsiders for their official use and with prior
permission of the organistion.
This data is basically about internal HR policies and strategies which is been
developed and published by the organization itself. The other source are
mainly interacting and reference book on HRD.

So this is the basic rsearch methodology used in this report. The primary and
secondary data both are important because they both have there pros nad
corns,but the proper combination of these two type of data can be useful to
this project work.

1.4) Scope of the study

The study will help to analyse the various organization policies.

The study will help the organisation to improve upon their policies which
are conducted by them

1.5) Limitations of the study

Data analysis is based on the information provide by the respondents..

CHAPTER: 2

PROFILE OF THE ORGANISATION

2.1) HISTORY
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves
against loss and disaster existed in primitive men also. They too sought to
avert the evil consequences of fire and flood and loss of life and were willing
to make some sort of sacrifice in order to achieve security. Though the concept
of insurance is largely a development of the recent past, particularly after the
industrial era past few centuries yet its beginnings date back almost 6000
years.
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 Swadeshi movement of 19051907 gave rise to more insurance companies. 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 Cooperative 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.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
its corporate office in the year 1956. Since life insurance contracts are long
term contracts and during the currency of the policy it requires a variety of
services need was felt in the later years to expand the operations and place a
branch office at each district headquarter. Re-organization of LIC took place
and large numbers of new branch offices were opened. As a result of reorganisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 crores
of New Business in 1957 the corporation crossed 1000.00 crores only in the
year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark
of new business. But with re-organisation happening in the early eighties, by
1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 109 divisional
offices, 8 zonal offices, 992 satallite offices and the Corporate office. LICs
Wide Area Network covers 109 divisional offices and connects all the branches
through a Metro Area Network. LIC has tied up with some Banks and Service
providers to offer on-line premium collection facility in selected cities. LICs
ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its
own past records. LIC has issued over one crore policies during the current
year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding
period of the previous year.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring insurance
into existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible and to
help the people in providing security to their families.

Mission
"Explore and enhance the quality of life of people through
financial security by providing products and services of aspired
attributes with competitive returns, and by rendering resources
for
economic
development."

Vision
"A trans-nationally competitive financial
significance to societies and Pride of India."

conglomerate

of

2.2) Product/service of organisation

Life Insurance

Life Insurance is an important and the best for insurance as well as

investment. You are not only covering the risk of your life but you even save
for your future and for your family. You even save for your childs education
your retirement and your tax benefit.
In India the Life insurance is given less importance but we believe that each
individual should save 20% for him so that in their absence their family or
during retirement they have a happy life.
We will suggest you which is the best plan for you.
Have an insight of our planning to meet general requirement of life
insurance.....
1. Child Education / Marriage Care
2. Happy Retirement Care
3. Liability Cover
4. Tax Planning + Life Planning
5. Corporate Insurance
6. Key Man Insurance
7. Partnership Insurance
8. Low cost term Insurance
9. Estate Creation
10.Policy Under Married Woman Protection Act
11.Design as per your requiremen

CHAPTER : 3
RELATED THEORY

3.1) HUMAN RESOURCE MANAGEMENT

Human resource is a crucial sub system in the process management .

actuatuing is the actual job of a manager . Getting work done by people by
motivating them toward action, which means working with the people, winning
their cooperation and engeries enthusiasm,is the real task of an active
manager. In a nutshell,HRM is at the centre of actuating which forms the crux
of prospective management.

Definition:

HUMAN RESOURCE MANAGEMENT IS THE

PLANNING,ORGANISING, DIRECTING AND CONTROLLING OF THE
PROCUREMENT,COMPENSATION,INTEGERATION AND
MAINTENANCE OF PEOPLE FOR THE PURPOSE OF CONTRIBUTING
TO ORGANISATION , INDIVIDUAL AND SOCIAL GOALS.

-FLIPPO

3.2) HUMAN RESOURCE POLICIES

H.R. policy provides more specific guideline for decision making on matter
relating to management of human resource. The term policy has been derived
from the greeek word
polities meaning citizen and latin word politis means polished, that is to
say clear. According to new Webster dictionary,policy means the art or manner
of governing the nation, the line of conduct which rulers of a nation adopt on
aparticular question,especially with regard to foreign countries the principle on
which any measure or course of action is based in the organisation context.

Defination of Policy
A policy is a statement or general understand ehich provides
guideline to the member of organisation for making decision in
respect to any course of action.
policies defined how the company with
stakeholder,employees,customer,suppliers distributors,and other
important group.policies narrow the range of individual discretion so
that employee act consistently on important issue.
-KOTLER

An organisation may provide policies to dealing with external factors or for

undertaking process which related to various functional are H.R policies may
be defined as follows.
H.R POLICIES provide guideline for a variety of employment
relationship and identified the organizations intentions in
recruitment, selection,development,compensation,motivation and
integeration of human resource

3.3) 0bjective of human resource policies

To enable the organisation to have adequate,competent,and trained

personnel at all level;

To provide such condition of employement that enable the personnel to

develop a sincere sense of unity with the organisation and to carry out
their duties in most willing and effective manner;

To provide and create a sense of responsibility on the part of those who

directly deal with human resource to adopt a huamistic approach with a
guaranteed protection of the fundamental rights of employees and
their diginity.

To develop condition for mutual trust and co-operation between those

who manage at all levels of the organisation;and

To establish condition for developing personnel and uitilisation of their

full potential for their own benefits as well as for the benfits of the
organization.

3.4) Characteristics of sound hr policies

A policy is somewhat a permanent features of an organisation . it being a

tsanding plan provides guidline to managerial decision . therefore , policies
should be developed on asound basis. If this is not done, managers have to
make decision again and again.
Some major characteristic of asound policy can be identified as follow:

Relationship to organizational objective

Planned formulation

Fair amount of clarity

Balanced

Written communication

3.5) Formulation of human resource policies

Organisational
philosophy
H.R philosophy

Internal
factor

Policy Alternative

External
factor

Policy maker

Policy action

Review

3.6) The policies which are conducted by the

organisation

In this project we concentrate the various HR policy in detail,which is held by

the LIC of India like
Compensation & Retirals,superannuation scheme Loans,Leave policy,
grievance resolution, travel policy and separation etc.

COMPENSATION & RETIRALS:

Base pay choice pay & PLI
Employees salary will be structured under the following categories
Base pay : Basic + PF
Choice pay : It include a menu of options for an employee to
choose there in.
Base pay & Choice Pay have 40:60 ratio .
Performance Linked Incentives(PLI) : As mentioned in the
appointment letter or as per the company PLI policy .
Compulsory debits :
These are the debt of group Personal Accident Insurance & Medical insurance
& Medical Insurance.
Allowance:
The term Allowance is used in some choice pay components. Allowance is
paid every month irrespective of supporting/claim. For allowance if no
supporting is produced by the financial year end, it is taxed as per IT Rules.
Allowance in choice pay are: conveyance allowance,house rent
allowance,leave travel allowance ,office wear allowance& child hostel &
education allowance.
Reimbursement :
The term Reimbursement is used in some choice pay component.
Reimbursement is paid only in the month when supporting/claiming for the
same are submitted by the employee Reimbursement in choice pay are : fuel
& Maintainance Reimbursement & medical Reimbursement.
Choice pay component
House rent allowance:
Permissible limit : 50% of basic (metro cities ), 40% of basic (non- metro
cities)
Preconditions: rented accommodation.
Lease agreement should be in the name of employee,copies of the
same to be submitted to HR & Income tax dept.
Rent receipts to be submitted to income tax dept. twice in a year or as
intimated by the pay roll.
Medical claim insurance :
Self coverage is mandatory, which also covers spouse & dependent children
at no extra premium. However, this is purely based on employees
selection( dependent parents can be covered on payment of extra premium
which will be deducted from CTC ).

PENSION OPTIONS PROVIDED BY LIC:

1. Life Pension ceasing at death.
2. Life Pension with Return of Capital and Group Pension Terminal Bonus on
death.
3. Life Pension guaranteed for 5,10,15 or 20 years and life thereafter.
4. Joint Life Pension payable on the last survivor of the employee and
spouse.
5. Joint Life Pension payable to the last survivor of the employee and
spouse with return of capital on the death of the last survivor. If
desired , 1/3rd of the pension can be commuted at vesting.
ELIGIBILITY CONDITION:
It is not obligatory or statutory on the part of the employer to provide for
pension to all employees. It is entirely upto him to decide to which class/
classes of employees he desires to extends the scheme. The eligibility
conditions may be defined on the basis of designation or salary. (However,
after the categories are specified, employer cannot discriminate between the
employees and thus extends the scheme uniformly).
CONTRIBUTION:
The maximum annual contribution that an employer can make to the Pension
Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of
the annual salary (basic plus D.A.) The annual contributions are treated as
deductible business expenses.
WHO PAYS CONTRIBUTION?
Mostly the employer contributes, but is so desired, both the employer and the
employees may contribute, in which case the scheme is called a Contributory
Pension Fund Scheme.
TAX BENEFITS:
The provisions relating to the approved Superannuation Scheme are set out in
Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961 and Part XIII of the
Income Tax Rules , 1962. The income tax concession will be available only if
the scheme is approved by the CIT.
1. The annual contribution is treated as a deductible business expense in
term of Section 36(1) (iv) of the I.T. Act.
2. In terms of a Notification issued by the Central Board of Direct Taxes .
80% of the contribution (s) towards the past service liability are treated

as deductible business expenses spread over in the subsequent years of

payment.
The employee's contribution , in the case of the Contributions scheme
qualifies for exemption under Section 80C of the Income-Tax Act

Traveling and daily allowances

1] Every non-official member shall be entitled to

Traveling allowances for journeys performed by him in connection with

the work of the Corporation at the rates admissible to officers of the
first grade in the service of the Central Government;

Provided that every such member shall, when traveling by rail, be entitled to
travel by air-conditioned accommodation if such accommodation is available.
Daily allowance as admissible to an Officer in the highest grade of the
Corporation; and

Actual expenses of lodging charged by the hotel other than a 5 star

hotel and an amount at the rate not exceeding the daily allowance
specified in
(i)
as and by way of boarding and incidental expenses.

The total duration of tour for which halting expenses are admissible
shall be calculated from the actual time or departure of the train or
flight from the place of residence of the Member by the last available
train or flight up to the time of the return thereto by the first available
train or flight after completion of official business.

(2) The traveling and daily allowances of an official member shall be governed
by the rules applicable to him for journeys performed on official duty; and in
case such official member is not in the service of the Corporation, the
Corporation shall make necessary reimbursement to the authority employing
such official

Proof of travel
The individual needs to submit proof of travel to his/her employer and also
keep copies for his or her own records. Such proofs are helpful at the time of
the audit of the tax return of the individual. Proof of travel could be, for
example, tickets, boarding passes, invoice of travel agent, duty slip etc

Grievance resolution
Disputes may arise when people work together . many conflicts arise out of
difference of understand whether between superior and employees or among
peers. Most dispute can be resolved informally in immediate work area.
Grievance procedure
(1) Any person who has a grievance against an insurer, may himself or
through his legal heirs make a complaint in writing to the Ombudsman within
whose jurisdiction the branch or office of the insurer complaint against is
located.
(2) The complaint shall be in writing duly signed by the complainant or
through his legal heirs and shall state clearly the name and address of the
complainant, the name of the branch or office of the insurer against which the
complaint is made, the fact giving rise to complaint supported by documents,
if any, relied on by the complainant, the nature and extent of the loss caused
to the complainant and the relief sought from the Ombudsman.
(3) No complaint to the Ombudsman shall lie unless:(a) the complainants had before making a complaint to the Ombudsman made
a written representation to the insurer named in the complaint and either
insurer had rejected the complaint or the complainant had not received any
reply within a period of one month after the insurer concerned received his
representation or the complainant is not satisfied with the reply given to him
by the insurer.
(b) the complaint is made not later than one year after the insurer had
rejected the representation or sent his final reply on the representation of the
complainant; and
(c) the complaint is not on the same subject matter, for which any proceedings
before any court, or Consumer Forum, or arbitrator is pending or were so
earlier.
Ombudsman to act fairly and equitably.:
(1) The Ombudsman may, if he deems fit, adopt a procedure other than
mentioned in sub-rule (1) and (2) of Rule 13 for dealing with a claim: Provided
that the Ombudsman may ask the parties for necessary papers in support of
their respective claims and where he considers necessary, he may collect
factual information available with the insurance company.

(2) The Ombudsman shall dispose of a complaint fairly and equitably.

Recommendations made by the Ombudsman:
(1) When a complaint is settled, through mediation of the Ombudsman,
undertaken by him in pursuance of request made in writing by complainant
and insurer through mutual agreement, the Ombudsman shall make a
recommendation which he thinks fair in the circumstances of the case. The
copies of the recommendation shall be sent to the complainant and the
insurance company concerned. Such recommendation shall be made not later
than one month from the date of the receipt of the complaint.

(2) If a complainant accepts the recommendation of the Ombudsman, he will

sent a communication in writing within 15 days of the date of receipt of the
recommendation. He will confirm his acceptance to Ombudsman and state
clearly that the settlement reached is acceptable to him, in totally, in terms of
recommendations made by the Ombudsman in full and final settlement of
complaint.
(3) The Ombudsman shall sent to the insurance company a copy of the
recommendation along with the acceptance letter received from the
complainant. The insurer shall thereupon comply with the terms of the
recommendations immediately not later than 15 days of the receipt of such
recommendation and the insurer shall inform the Ombudsman of its
compliance.

Removal of a member
(1) The Central Government may remove any member, who, in the opinion of
that Government, has so flagrantly abused in any manner his position as a
member as to render his continuance as a member detrimental to the public
interest.
(2) No member shall be removed under sub-rule(1) unless he has been given
a reasonable opportunity of showing cause against his removal.

Term of office of members1. An official member shall hold office during the pleasure of the
Central Government.
2. A non-official member shall hold office for a period of three 2A years
unless a shorter period is specified in the order of appointment.
3. An out-going member shall be eligible for re-appointment.
[3][3A] Office of Chairman : The Office of the Chairman shall be
whole-time]

Report

The Annual Report to be submitted by the Corporation to the Central

Government under section 27 of the Act regarding its activities during
the previous financial year shall be in such form as the Central
Government may, from time to time, direct and shall inter-alia contain
particulars in respect of the following matters, namely;-

a.

the extent of the new business;

b.

the total amount of business in force;

c.

the total amount of claims;

d.

nature of investment; and

e.

the accounts

Superannuation Scheme Provided by LIC:

The employer contributes a certain fixed percentage of salary of each
member. Such Contributions are accumulated by LIC and the accumulated
amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1) ON RETIREMENT:
On Retirement of a member, the corpus (contributions plus interest) is utilized
to provide the pension as per his choice.
2) ON DEATH:
The Pension is payable on the life of the beneficiary. Corpus is utilized towards
the payment of pension of the type the beneficiary may opt and the benefit so
received is tax free. A lump sum payable by way of death besides the pension,
if the employer has taken Group Insurance Scheme in conjunction with the
Group Superannuation Scheme.
3) ON WITHDRAWAL:

He can get the equitable interest transferred to the Superannuation

Scheme of the new employer or opt for immediate or deferred pension.
GROUP INSURANCE SCHEME IN CONJUNCTION WITH
SUPERANNUATION SCHEME:
The members of the Group Superannuation scheme can be covered
under Group Insurance in conjunction with superannuation scheme so
as to provide death risk cover while in service subject to certain
conditions.

GROUP
SIZE

SCALE OF COVER

MAX. LIMIT
OF COVER

10-49

2 months salary for each year of future service on

1.75 lakhs
death

50-99

2 months salary for each year of future service on

3.00 lakhs
death

100 &
more

2 months salary for each year of future service on

4.00 lakhs
death

INTEREST RATES FOR 2004-2005

Fund Size

Rate of

Interest
Below Rs. 25 lakhs

7.40%

Rs. 25 lakhs or more but less than Rs.1 Crore

7.55%

Rs. 1 crore or more but less than Rs.10 Crores

7.75%

Rs. 10 Crores or more but less than Rs.50 crores

7.95%

Rs. 50 crores or more but less than Rs. 100 crores

8.05%

Rs. 100crores or more but less than Rs.200 crores

8.10%

More Than 200 Crores

8.20%

4.1 DATA ANLYSIS AND INTERPRETATION QUESTIONARARIES

1] For how many year do yu working in this organisation?

Srno.

Options

No.of
respodents

Below 1 year

18

30

1 year-3 year

22

36.666666

3 year-5 year

10

16.666666

Above 5 year

10

16.666666

Total

Percentage
%

60

Sales
Below 1 year

1 year-3 year

3 year- 5 year

17%

Above 5 year

30%

17%

36%

Interpretation
From the above data and graph it is come to know that 90% of the
respondents are aware about the organizations policies and that of 10%
are not

2] Did you fully know about the companies policies before joining the
organisation?
srno

options No.of
respondents

Percentage
%

Yes

54

90

No

10

total

60

100

Chart Title

20%

YES

NO

80%

Interpretation
From the above data and graph it is come to know that 90% of the
respondents are aware about the organisations policies and that of 10%
are not .

3]

Are you satisfied with management policies?

Srno

Options

No. of
respondents

Pecentage
%

1.

Satisfied

10

2.

Not satisfied

3.

Partially satified
Total

33

55

21

35

60

100

Chart Title
10%

satisfied

35%

Not satisfied
partially satisfied
55%

Interpretation
10% employees are satisfied with the management policies, 55% are not
satisfied and the remaining i.e 35% employee are partially satisfied with
the policies which are conducted by the organization.

4]

Nature of relationship between the employee in the organisation?

srno

options

No.of
respondents

Percentage
%

Formal

48

Informal

10

Both

10

total

60

100

Formal
Informal
Both

Interpretation
The relationship between the employees in the organization is 80% formal
10% informal and the remaining 10% is for both i.e. formal and informal.

5]

Are yu happy with job profile ?

srno

options

No. of
respondents

Precentage
%

yes

57

No

total

60

100

95

Chart Title
20%
YES
NO
80%

Interpretation
95% of the employees are happy about their job profile and their job profile
and that of 5% are unhappy.

6]

Are yu availing medical facilities provided by the organisation?

Sr. no

options

No.of
respondents

Percentage
%

Yes

10

No

50

83.33333

total

60

100

16.66666

Chart Title
20%
YES
NO
80%

Interpretation
17% of the employee are availing about the medical facilities of the
organization but 83% are not and those who are not availing, it was said by
them that at the time of interview they were not informed.

7] Type the reward preffered in the organisation?

Srno.

options

No. of
respondents

Percentag
e

Monetary

39

Non.monetar
y

21

35

both

total

60

100

65

Chart Title

monetary

35%

non-monetary
65%

both

Interpretation
65% employees are saying that they are getting monetary types of reward
and the remaining 35% are saying that they are getting non-monetary
types of reward.

8]

Are yu satisfied with the salary structured provide by an organisation?

Srno.

options

Yes

27

No

33

55

60

100

Total

No.of
respondents

percentag
e
45

Chart Title
20%
YES
NO

80%

Interpretation
45% of the employees are satisfied with the salary structure provided by
the organization and 55% are not satisified

10] Are yu satified with the leave policy of the organisation?

Srno.

option

No.of
respondent

pecentag
e

yes

15

25

no

45

75

total

60

100

Chart Title
20%
YES
NO
80%

Interpretation
25% of the respondents are satisfied with the leave policy but 75% of the
respondents are not satisfied which is provided by an organisation

10]

Are yu happy with the allpwance given by the organisation?

Srno.

Option

No.of
respondent

Percentag
e

1.

Yes

17

2.

No

43

71.6666

Total

60

100

28.3333

Chart Title
20%
YES
NO

80%

Interpretation
28% respondent is happy with the allowances given by an organization and
72% are not happy.

11] From the following type of allowance are given to yu?

Srno.

Options

No. of
respondents

Conveyance

60

HRA

10

Travel

60

Health &saftey

Child education
&hostel

15

60
50
40
30
20
10
0

Interpretation
From the above data and graph it is come to know that all the employee
are getting conveyance and travel allowance but not all the employee are
getting HRA , Healthy and Saftey and child Education and hostel allowance.

Any bonus or special allowance given to you?

Srno.

Option

No.of
respondents

Yes

12

No

48

Total

60

Percentage
%
20
80
100

Chart Title

20%
YES
NO
80%

Interpretation
20% employees are getting bonus and special allowance from the
organization and 80% are not getting any bonus or special allowance.

13]

Most of the employee are separated from the organisation by?

sr no

Option

No. of
respondents

1.

Resignation

48

2.

Termination

15

3.

Dismissal

4.

Death

10

5.

Completion of legal
bond

50
45
40
35
30
25
20
15
10
5
0

Interpretation
The separation practices exercised by the organization for detaching the
employee are mostly done through resignation.

FINDINGS

The organization follows same HR policies and procedure in all over the
India and it is as per the rules and regulation of the act.

Most of the employees are known about the company policies.

Most of the employee are not satisfied by management policies.
It is also found that there is a good relationship between the employees
in the organization and all the employees are satisfied with there job .

Employees are not availing about medical facalities of the organization.

The company is providing rewards to their employees are either
monetary or non-monetary but not both.

Most of the employee are not satisfied with the leave policy.
Most of employees are not happy with the salary structure which is
provided by the organization

Employees are not satisfied with the allowance provided by the

organization.

The employees are separated by the organization mostly by way of

resignation and not by other way as compare to the resignation

CONCLUSION
As this organization is having its branches all over the India so,the H.R.
policies and procedures are followed same in all over the India.
H.R. policy provides more specific guideline for making decisions on matters
relating to management of human resource. The H.R policies are followed in
all over the Indian organization
But, in this organization most of the employee are satisfied by management
policies but there are some employee which are not satisfied regardingAllowance, salary structure,leave policy etc. and the management must satisy
them by providing allowances like maternity allowance to the female
employee, medical allowance,etc

CHAPTER : 5
RECOMMENDATIONS AND SUGGESTIONS

5.1) suggestions

The organisation must have to prepare a new salary structure for their
employee by which the employee will become happy and will more
concentrate on their work which will be helpful to increase the
productivity of the organisation.

The organistion should provide HEALTH provision under factories act. To

the employee like
1. Cleanliness (sec. 11)
2. Dust and fumes (sec.14)
3. Drinking water (sec.18)

The organisation should also provide WELFARE provision under factories

act to the employee like
1. Washing facilities(sec.42)
2. Facilities for sitting(sec. 44)
3. First aid appliances (sec. 45)

CHAPTER : 6
ANNEXURE

Reference
Human resource management :
WWW.GOOGLE
HR.COM

Salary structure

Employee Id

Name

:
Department

Designation

Date of joining

PF Account

Days Worked

ESI

Account no.

no.

Bank Acct/Cheque no . :
Fathers/husband,s name :
Earned leave
leave

casual

Earning

Deductions

Amount

Amount
Basic Pay

Employee state insurance

Dearness Allowance

Provident Fund

Medical Allowance

Professional Tax

Overtime
House Rent Allowance
Conveyance Allowance
Total Earnings
Previous Balance

Total Deductions
IIet Pay (Rounded)

Carry over Round-off

------------------------------------------------------------------Employers signature
signature

Employeres

Travel Requistion form

Date

Name

Department
Location

Employee level:

Date

From

:
:

Purpose of visit

To

Flight/train/other
No.

ETD

Other
requirement
ETA

CAR
HIRE

HOTEL
STAY

Travel advances required

NO. of Days

Requested by :
by company/self

Approval of hr dept.
accounts dept.

------------------------------------------------------------(signature)
(signature)

Amount
(Per Day)

Total Amount

Mode of travel :

Approval of director/RSM

------------------------------------(signature)

Tickets brought

Approval

1.

Proposal No

2.

Date of

3.

Commencement
Name of Grantees

5.

Registered Address of
Grantees
Name of the scheme

6.

Term

7.

Member

8.

Annual Renewal

Date In relation to the scheme shall mean the------and the------every year.

9.

Beneficiary

10.

Eligibility

The person nominated by the Member to receive the

benefits
under the scheme in the event of death
All permanent employees who are aged not less than
18
years and not more than ------ years as per scheme

11.

Entry Date

12.

Normal Retirement

13.

Date
Sum Assured

14.

Death Benefit

15.
16.

Resignation /
Retirement
Benefit
Policy Account

17.

Interest Payable

Policy Account shall mean the account to be

maintained by
the Corporation in favour of the Grantees to which
will be
credited the Contribution (as described in ScheduleII).
Gratuity Benefits shall be paid out of Policy Account.
As per Para 3 of Schedule II

18.

Charges

As per Para 4 of Schedule II

4.

rules
Entry Date shall mean (a) in relation to original
Members
the Annual Renewal Date and (b) in relation to new
Members admitted to the Scheme after the Annual
Renewal
Date, the 1st of the month or Annual Renewal Date
which is
coincident with or immediately next follows the date
on
which they become eligible.
The date on which Member attains the age of ---------years.
Lumpsum amount (i.e. Life Cover Benefit) payable on
death
in respect of a Member.
Sum Assured in respect of a Member under this plan
as
mentioned in Schedule- III along with Gratuity Benefit
as
per scheme rules
Gratuity Benefit as per scheme rules

19.

Bulk Exit

As per Para 7 of Schedule IV

20.

Surrender

As per Para 8 of Schedule IV

21.

Market Value

Market Value Adjustment (MVA) is a reduction in the

Policy Account Value to cover the market losses of
underlying investment. It shall be calculated as per
para
4(iv) of Schedule II

Adjustment

POLICY DOCUMENT

Gratuity
FORMULA to calculate Gratuity
( last drawn salry *15*no.of years worked in service )/26.

In case seasonal employee:

( last drawn salary*7* no. of years worked in services)/26