Employee Motivation and Internal Marketing

Download Employee Motivation and Internal Marketing

Post on 07-Apr-2018

219 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • 8/3/2019 Employee Motivation and Internal Marketing

    1/69

    Sr. No. Title Page Number

    1 Abstract 2

    2 Introduction 3

    3 Literature Review 10

    4 Methodology 24

    5 Discussion, Analysis and Interpretation of data 36

    6 Study Limitations 39

    7 Conclusion 40

    8 Project Reflection 42

    9 Questionnaire 49

    10 Bibliography 53

    pg. 1

  • 8/3/2019 Employee Motivation and Internal Marketing

    2/69

    Chapter 1 Abstract:

    Introduction: It focuses on the research conducted on Max New York Life Insurance across

    town classes, SEC and geographies amongst both pension plan buyers and non-buyers a few

    stark facts emerged. The research brought out facts about the youngsters of our country. It

    brought out the fact they are too lazy to give time for acquiring pension plans, which is there

    ultimate help during their old hood days. There is a lack of motivation among sales agents to

    market pension policies in India.

    Literature Review: It revolves around Indian insurance industry as a whole. There are light

    thrown on different aspects of this industry. The focus is on the insurance agents who are

    responsible for selling the insurance policies to the customers. There has been also a study of

    customer-orientation behavior and level of motivation.

    Methodology: The sample of the pilot study consists of 30 part time and full time agents doing

    insurance from companies which do not participate. There will usage of mixed method approach

    in our project.

    Discussion, Analysis and Interpretation of data: These inventions have developed many

    significant results. Previously, it has been seen that customer management behavior are different

    according to their character. But the present study says that the value of customer based policy

    by insurance agents is affected by the standard of managerial commitment and general influence.

    Conclusion: Many aspects came into out purview which would be helpful in generating sales of

    insurance policies which would there by increase sales. Many methods came out which would be

    helpful in motivating the insurance agents to sell move policies and results also came out

    pointing the drawbacks in the management of insurance companies.

    pg. 2

  • 8/3/2019 Employee Motivation and Internal Marketing

    3/69

    Chapter 2:- INTRODUCTION

    Introduction:

    Contact personnel play a pivotal role in the delivery of high contact services. The service

    employee often represents the organisation in the eyes of the customer. Due to this, the role of

    employee is both complex and multi-dimensional. Management must be aware of the difficulties

    associated with this role and consequently the need for internal marketing, focusing on the area

    of motivation, which is required for a successful service experience.

    The paper outlined, will highlight the role of the service employee in the service process, the

    challenges which this presents to the boundary spanning employee. The paper will then address

    the manner in which, management can use internal marketing to motivate employee to provide

    the best possible service to customers.

    Internal marketing and the use of motivation in the service context, will lead to lower turnover

    rates, improved performance, increased customer satisfaction and increased communication

    levels within the organisation. The project discusses about motivating insurance agents to sell

    insurance product like pension schemes which is still an underdeveloped concept in India.

    It is the general perception among masses that life after post-retirement needs to be an idle phase,

    where there is no work and life is only for enjoyment. They want to relive those days and

    moments which they missed when they were working. This is their thinking but do we know

    what the reality, does this ever happen? It is seen that the lives after retirement becomes struggle

    some. Their regular income stops, which leads to a series a problems such cost cutting measures

    and change in the lifestyle. Thing becomes worse if they have some dependents with them. Such

    things can be avoided to a great extent if retirement is planned systematically. Planning for

    retirement well before time is advisable because this gives some time in buffer and you can think

    of the retirement in a relatively better manner.

    If we are talking about Indians, then planning for systematic retirement needs sooner than others

    countries because a majority of the Indias workforce (425 million) does not have any pension

    cover. The problem does not end here as there is absence of social security in India and what

    adds to the problem is ever increasing inflation. As a result of inflation, there has been an

    pg. 3

  • 8/3/2019 Employee Motivation and Internal Marketing

    4/69

    increase in the cost of healthcare, which cannot be borne by our senior citizens. With all these

    problems the life rarely seems to be idyllic instead the complications keep rising with each

    passing day. This is one of the reasons many people dread post retirement days and keep

    avoiding as much as possible. However, there is always a ray of hope when all the things seem

    bleak. For those people who are vying for retirement insurance plans come as a ray of hope and

    this is one of the reasons why there has been a constant in such life insurance plans. In recent

    times, many reputed names and brands have thrown in their hats in this field. However, it is

    essential to consider as per the perspective of consumers and it is obvious that they do not have

    proper information regarding the plans or in other words they are ignorant.

    The following is the research performed by Max New York Life Insurance across different

    towns, cities, geographies and SEC amongst people who buy insurance and individuals who

    dont. The result was revelation of sorts.

    1) Youngsters consider retirement as a distant subject and prefer avoiding it as much as

    possible. They major concern is focusing on short term goals, where they can get faster

    returns. Their investments include discretionary spending, automobiles etc. They just

    dont want to even think of retirement.

    2) When the eventuality sets in, they turn into late thirties or forties, and then they start

    pondering about retirement. However, the time is lesser so its certain that things

    complicate and they make a sound plan for their retirement.

    3) The basic problem with consumers is that they dont have a proper scale or a criterion,

    which helps them to measure the approximate amount of money required for maintaining

    their present lifestyle post retirement. This is one of the basic reasons why pension plans

    are making merry in the Indian markets.

    4) Most of the consumers are aware that with the time the value of money would diminish

    but they dont have any calculator, which assists them to calculate the inflation rate.

    5) Over the years, pension plans were perceived to be taking care of just roti in the basic

    three necessities for survival which are (roti, kapda aur makaan). Pension plans for past

    pg. 4

  • 8/3/2019 Employee Motivation and Internal Marketing

    5/69

    many years were never seen as the post retirement option instead they were meant to

    fulfill daily requirements.

    6) The most striking aspect of this research was that consumer was not willing to be

    dependent on their children post retirement. It was awkward to find that consumers were

    not willing to take any assistance from their children and did not want themselves to be

    looked after their children post-retirement. Most of them referred to Baghban movie to

    support their decision. The thoughts and trend of our society is changing to a great extent

    and it is certain that it may have a huge impact on the rise in the demand of pension plans

    in the coming future.

    It is interesting to know that pension plans in most of the developed countries forms a

    majority of capital in their countries. In the countries such as US, the pension plans

    constitutes to a large section and also the source of financial capital. What amazes many is

    that there are certain countries where the aggregate or total value of pension funds exceeds

    the GDP (gross domestic of the country)

    Over the years, the debate regarding the reforms of pension plans has been intensifying.

    People are giving example of financial sector reforms, which has led to a significant progress

    in different spheres such as banking, capital as we currency markets. Therefore, most of the

    people second that there is need of reforms in the pension plans, which can revolutionize this

    sector and give it a breather. There is need of a comprehensive policy, which helps in the

    revamp of this sector and for past some time now people are demanding for the same.

    It is seen that most of the major retirement schemes such as pensions and provident funds are

    covering only workers from organized sector, which only constitutes to about 10 percent of the

    overall workforce. It is to be believed that a majority of workers which amounts to

    approximately 90% are into the unorganized sector and are not having any access to post-

    retirement security. As stated earlier, they must be enlightened in order to avail these plans and

    here, agents have to do their part.

    It is seen that a majority of agents selling the pension plans lack that passion or killer instinct

    required in marketing such plans because their commissions are way too low, they lack complete

    pg. 5

  • 8/3/2019 Employee Motivation and Internal Marketing

    6/69

    knowledge and lackadaisical approach shown by the consumers. It is important that these

    schemes generate lesser commission for agents so there is motivating factor which can drive

    them towards giving them their best. The best part of this report is that it focuses on the

    generation of interest in agents, which is the most important aspect if they are the backbones of

    this industry and completely responsible for the sales of plans. The pension scheme in India is

    under developed and there are expectations that it would be growing up to 20% by 2015.

    This project focuses on the creation of a plan useful for internal marketing, which may help in

    developing the strategies useful for motivating the agents, which helps them in selling the plans

    to the prospective consumers. This is highly beneficial for the entire India given the fact that

    since agents will be motivated to sell the pension plans and they would ensure to sell some of

    them, which would thereby result in secure and sound future of Indians post-retirement.

    Limitations

    Shortage of the time limit

    GD i.e. Group discussion could not be focused properly.

    An expert panel of at least 4 panels could not be drawn.

    Sample

    Sample would be random and heterogeneous

    The gender would be neutral and the age limit would be 16 to 60.

    Strategical Internal marketing tools and techniques

    Internal marketing is a process where the companys functional processes aligns and empowers

    all the employees at all management levels to convey a satisfactory customer satisfaction.

    Employees play a very important role in this internal marketing. The ultimate motto of this is

    that you should extract the total resource in your employees by increasing the sales at its best.

    You should tune them in such a ways they their behavior shall get totally changed and shall

    devote for the welfare of the company.

    The most important things behind this internal marketing are that it is a process of continuous

    upgrading of skills and aligning them according to the organizations purpose. Employees must

    realize the core values of the company. Thus it is important to motivate, reframe and empower

    pg. 6

  • 8/3/2019 Employee Motivation and Internal Marketing

    7/69

    them in all the ways. Management inside and outside must be efficient. On the whole, the

    output must be positive customer satisfaction. Internal marketing concepts and communication

    skills are very important to sustain as employee in this present day world. Most of the banks and

    finance companies are following this internal marketing formula in which every staff member

    will be assigned targets and they should build up their targets from every step in to the bank.

    (Internal Marketing -Pervaiz K. Ahmed , Mohammed Rafiq)

    The following are the various tools, steps and strategies of empowering employees through

    Internal Marketing

    1. Interaction between marketing department and employees

    It is the responsibility of every employee to upkeep the hope of employer there by understanding

    what you are doing, what you should do to increase the profits of the company, what are your

    existing targets and what shall you do to compete with the toppers of the market. You should

    visualize the target before your marketing department hints. Marketing department should

    interact with the employees from time to time to enhance their skills. Communication with team

    of employees gives realistic results.

    (Relationship Marketing:-Ian H. Gordon)

    2. Training sessions for staff development:

    Training builds confidence in the employees and staff development can be possible. Effective

    internal communication skills can be implemented and can be extracted through various training

    sessions. Their knowledge about the understanding of customers will be enhanced through

    multiple training sessions. Every person will have marketing skills. But extracting them is agreat art and one can achieve with multiple training sessions.

    (The ASTD Training and Development Handbook -Robert Craig)

    3. Leadership needs to "second" what marketing is doing

    Firm management has to be vocal about supporting marketing, and the overhead expenses that

    come with it. There are times when overhead is questioned in any architecture firm or

    construction company, but it is leadership's responsibility to assure everyone that there is a

    strong sense of purpose and that the expenses yield results in the long term. A well-crafted

    marketing plan is always a good thing for leadership to point back to. The though and concept of

    leadership should not come in ones thought. All are treated equally and all should work like

    wheels of a vehicle. Successful Internal co-ordination leads to successful internal marketing.

    ( The Future of Leadership Development- By Jordi Canals)

    4. Needs Project meetings at regular intervals

    pg. 7

  • 8/3/2019 Employee Motivation and Internal Marketing

    8/69

    Mobilization of all the employees at regular intervals is very important. Diversification of their

    thoughts and answering their problems increases their efficiency. It may not seem like marketing

    necessarily, but it is important. Sitting in on a few project meetings has several benefits. First, it

    builds trust amongst the team. Doing it once won't work, but if it becomes a regular thing it will

    improve communications. Second, you learn more about what the firm really does. Even for

    more senior marketers that may understand the industry very well, there is much to be said for

    learning a little bit about the specific projects and headaches that your coworkers face. Finally,

    you may get some ideas about new ways to market the firm. You never know what problems

    may pop up during a conversation that you can help solve thr...