A

Research Report on

Submitted to

Chhattisgarh Swami Vivekanand Technical University Bhilai (C.G.)

as partial fulfillment of the award of Master of Business

Administration

From

Raipur Institute of Technology, Raipur (C.G.)

Session 2009-2010

Guided ByProf. Parag Pateria

(H.O.D)Dr.Prachi Singh

Submitted ByShubhangini Sahu

MBA 2nd Sem

Abstract

In order to correlate theoretical aspects of the management studies with practical aspect of real business world, students of management are required to undergo research project in leading organizations. Infact the research can be compared with the window through which the person can peep into the business world and can observe the activities of real business world before directly interacting with it.

Today the shape of universe is changing at a very rapid rate not in terms of size but the way technology has developed. The continuous and innovative technology has made the life more comfortable and luxurious. If we see the second facet of technology, it has successfully increased the efficiency of either individual or business with maximum busyness and in turn busyness is continuously reducing the life expectancy. Today we are living in the generation, which is known as knowledge age, or information age where global competition is on fire. This global competition is not only enforcing the business to grow but also continuously developing new and innovative strategies so that maximum customer relationship can be established with maximum retainment.

Insurance sector holds its own importance in the market and is now recognized as one of the major contributor in generation of revenue. The first major step by government was formation of life insurance Corporation of India formely called as LIC, which has now, spreaded in almost every corner of the country with an annual contribution of approximately 75% zonal and regional branches. Being one of the profit oriented sector many private players with foreign ventured have emerged out and till present 14-15 are rolling their performance. Among these the top players are Bajaj Allianz , HDFC Standard life, ICICI Prudential, Birla Sunlife and so on. These were rated by many business magazines and successfully created trust in market.

CONTENTS

S.No. Details Page No01 Company Profile ………………………………………… 1-5

History………………………………………………………1Vision……………………………………………………… 1Mission…………………………………………………...... 1Achievement………………………………………….......... 1Policies……………………………………………………...1Insurance ……………………………………………….…..2General Insurance………………………………………….. 2-5

02 Introduction………………………………………………. 6-10Introduction of Topic………………………………………. 6Research objective…………………………………………. 8Different Levels……………………………………………. 10

03 Research Methodology …………………………………... 11-16Definition…………………………………………………... 11Steps of RM……………………………………………….. 12.Research Design…………………………………………….13Primary Data & Secondary Data……………………………13-15Sample Size…………………………………………………16

04 Data Analysis and Interpretation……………………….. 17-19Introduction…………………………………………………17Questions & Graphs………………………………………...17-19

05 Limitations…………………………………………………20

06 Conclusion………………………………………………… 21-22

07 Bibliography………………………………………………. 23-24

ACKNOWLEDEMENT

Before commencing for the research report I would like to express my heart felt gratitude to few persons who have helped me in my efforts to complete this project in the scheduled time.

First of all I would like to thanks Mr.Parag Pateria, H.O.D. (Management Dept.) RIT,who gave me the opportunity to explore myself, then I would like to thank my faculties of the Management Dept. Profs. Prachi Singh, Pankaj Bahety, Preeti Sagar Yadu and Supneet Bachhu for their guidance and inspiration.

Finally, I would like to thanks my parents,friends and all the staff of RIT for their support and best wishes.

I anticipate that the project has covered all the important aspects of the concerned topic and has left no stone unturned to satisfy the authorities.

Submitted by:SHUBHANGINI SAHUMBA, 2 Semester

CERTIFICATE

This is to certify that Shubhangini Sahu have developed research report

entitled “Training Needs Identification in Service Industries” for the partial

fulfillment of degree of Master of Business Administration 2 semester 2009, RIT,

Raipur Affiliated to Chhattisgarh Swami Vivekanand Technical University.

(Prof. Parag Pateria)H.O.D. Management Dept.RIT Raipur

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2008, Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the last year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores.

In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

Vision• To be the first choice insurer for customers • To be the preferred employer for staff in the insurance industry. • To be the number one insurer for creating shareholder value

Mission

As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

A Partnership Based on Synergy Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance.

What kinds of policies are there?

Most general insurance policies are annual – that is, they last for one year. Some policies are given for longer periods – like fire insurance for residences – and some for shorter periods – like insurance for goods transportation or for emergency medical treatment during foreign travel.

Achievements

Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position.

WHAT IS INSURANCE

Insurance is system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.

Basically, insurance enables those who suffer a loss or accident to be compensated for the effects of their misfortune. The payments come from a fund of money contributed by all the holders of individual insurance policies. In other words, individual risks are pooled and shared, with each policyholder making a contribution to the common fund.

The contribution is known as the premium. Premiums are paid to insurers - these are institutions which accumulate the money into the fund from which claims are paid. The loss is in fact paid for by the policyholder making the claim and by all the other policyholders who have not suffered in the same way.

Insurers

Insurers are professional risk takers. They know the probability of different types of risk happening. They can calculate the premiums needed to create a fund large enough to cover likely loss payments. Clearly, only a proportion of policyholders will require compensation from the fund at any one time.

Two kinds of Insurance

There are two different kinds of insurance:

1. Life insurance2. General insurance.

What is General Insurance?

Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown,there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.

Difference between Life insurance and General insurance

General insurance pays out:

• if a car has an accident or is stolen; • if a house catches fire or is burgled; • if a holiday has to be cancelled; • if someone is careless and damages other people's property.

Most life policies, on the other hand, pay out when an event happens;

• when someone dies; • when someone survives beyond a specific date.

Anyone can buy life insurance but, of course, the premium will depend on your age, your health, and your occupation.

Husbands and wives can insure each other's lives. However, one cannot insure the lives of other people unless having a financial involvement in their life. This principle of insurance is called "insurable interest".

Training need identification is a tool utilized to identify what educational courses or activities should be provided to employees to improve their work productivity. Here the focus should be placed on needs as opposed to desires of the employees for a constructive outcome. Inorder to emphasize the importance of training need identification we can focus on the following areas: -

• To pinpoint if training will make a difference in productivity and the bottom line.

• To decide what specific training each employee needs and what will improve his or her job performance.

• To differentiate between the need for training and organizational issues and bring about a match between individual aspirations and organizational goals.

Identification of training needs (ITN), if done properly, provides the basis on which all other training activities can be considered. Also requiring careful thought and analysis, it is a process that needs to be carried out with sensitivity as people's learning is important to them, and the reputation of the organization is also at stake.

Identification of training needs is important from both the organisational point of view as well as from an individual's point of view. From an organisation's point of view it is important because an organisation has objectives that it wants to achieve for the benefit of all stakeholders or members, including owners, employees, customers, suppliers, and neighbours. These objectives can be achieved only through harnessing the abilities of its people, releasing potential and maximising opportunities for development. Therefore people must know what they need to learn in order to achieve organisational goals. Similarly if seen from an individual's point of view, people have aspirations, they want to develop and in order to learn and use new abilities, people need appropriate opportunities, resources, and conditions. Therefore, to meet people's aspirations, the organization must provide effective and attractive learning resources and conditions. And it is also important to see that there is a suitable match between achieving organizational goals and providing attractive learning opportunities.

Also in order to bring a synchronisation between organisational and individual objectives people need to question the way they do things. And this is precisely the hidden objective behind any training need identification process. It should ideally be a long-term process of encouraging employees to take an active involvement in their own development, thus increasing their commitment to learning, to their work, and to the organization as a whole.

There are many approaches to the identification of training needs, some of which aredescribed here. Unfortunately, waving a magic wand isn’t one of them! They all involve hard work and the adoption of an analytical and diagnostic approach to try to determine what is required. Some trainers prefer the term ‘training needs analysis’ (TNA) to ‘identification of training needs’ (ITN), but it is the same thing.many

people in the training profession prefer to use the term ‘learning needs’ rather than ‘training needs’ because it seems to be more inclusive of the wide range of learning methods that exist, and because it is less trainer-centred. Use whatever terms you like, bearing in mind the possible reactions from the people affected.

RESEARCH OBJECTIVE

The main objectives of present research report are based on following criteria:

1. To describe a range of methods for identifying training needs in service industries.

2. Identify sources of information relevant to learning/training needs3. Use a variety of methods for information-gathering, including interviews,

discussions and questionnaires4. Explain the way in which development centres are constructed and operate.

In order to research report that is Training Needs Identification in Service Industries, a manager of any service industry should conduct a training because:

All managers should conduct a training needs analysis to:

• Determine what development is relevant to staff needs; • Determine what development will improve performance; • Determine if training will make a difference; • Distinguish training needs from organisational problems; and • Link improved job performance with the organisations' goals.

Different Levels at which it is to be Conducted

Identification of training needs can be done at three levels to ascertain three kinds of needs: -

Organisational Needs

these concern the performance of the organisation as a whole. Here identification of training needs is done to find out whether the organisation is meeting its current performance standards and objectives and if not, exploring ways in which training or learning might help it to do so. Sometimes organisational training needs are also identified when the organisation decides that it has to adopt a major new strategy, create a new product or service, undergo a large-scale change programme, or develop significant new relationships, such as joining with others to form new partnerships.

Group Needs

Since working in groups and teams have become very much prevalent in today's corporate world that is why nowadays there is increased emphasis given on team effectiveness and team performance. So training needs are nowadays even identified at the group level. Training needs here are concerned basically with the performance of a particular group, which may be a team, department, function, sub-unit, or so on. Information about this group’s performance may identify areas of need - which, again, may be for training or other interventions. It is used to find out how efficiently a particular team or group goes about its business and meets its current objectives.

Individual Needs

These concern the performance of one or more individuals (as individuals, rather than as members of a group). Here identification of training needs is about finding out to what extent individuals need to learn or be trained in order to bring their current performance up to the required level as a result of changes in methods and processes that call for new competencies and skills.

It also sees to it that there is continuous improvement initiative taken by them. Moreover it also helps to find out whether individuals are comfortable in working across boundaries, with people from different backgrounds and different perspectives. This is especially important because there is so much work force diversity observed today in organisations that it has become impossible to retain workforce, which is not flexible enough to accommodate such changes into their daily work schedule.

Research can be defined as systematized effort to gain knowledge. A research

is carried out by different methodologies, which have their own pros and cons.

Research methodology is a way to solve research problem along with the logic

behind them. Thus when we talk of the research methodology we not only talk of the

research methods but also consider the logic behind the methods we use in context of

our research study and explain why we are using a particular method or technique and

why we are not using others so that research results are capable of being evaluated

either by the researcher himself or by others.

Research methodology means the method carried out to study the problem. It

shows the type of the sample design used, its size and the procedure used to draw

sample. The extent of precision achieved and the method used for handling any

special problem during the course of the study.

Generally a research methodology comprises of the following steps

S.No. General Methodology Applicability of Methodology

Step1. To decide the objective of the study.

To find the prospective financial consultant for the company..

Step2. To decide the research design

Descriptive research is applicable to the project

Step3. To determine the source of data

Primary data is applicable to the project.

Step4. To design data collection form

Survey method is applicable.

Step5. To determine sampling design and sample size.

Non-probability stratified sampling is applicable.

Step6. To organize and conduct the fieldwork.

Personal interview through structured questionnaire is used to collect the primary data.

Step7. To process and analyze the collected data.

To study the perception and plans of the people.

Step8. To prepare the research report

Finding and analysis of the collected information.

Explanation:

Step 1: To decide the objective of the study to be carried out.

To Study about Bajaj Allianz General Insurance.

To describe a range of methods for identifying training needs in service industries.

Step 2: To decide the research design

What is a research design?

Research design is a plan, structure, strategy of investigation conceived so as to obtain answers to research question and control variance.

There are three types of research design system.

Exploratory Research

Descriptive Research

Casual Research

Among the above mentioned types descriptive research design has been

chosen. Descriptive research design is used when the characteristics of a certain

group, specific predictions or association of certain variables are to be determined.

The prime focus of this research is to find an identification of training needs in

service industries.In order to study the characteristics and variables, cross-sectional

analysis was conducted by using field survey method. In the process of field survey, a

questionnaire was developed and circulated to the respondents, which formed the

basis for the entire research.

Step 3: To determine the source of data.

Data sources are the data resources or collection of fresh data to

obtain results. There are two types of data sources:

Primary Data: - Primary data is that data, which is collected fresh and thus, happen to be original in character.

Secondary Data: - Secondary data is any data, which have been gathered earlier for some other purpose.

Among the above-mentioned types of data primary data was used for the

study and analysis of the objectives of this project. Also the secondary data proved to

be helping hand in framing up the insurance industry scenario and also the relevant

topics in the entire project report.

Characteristics of Primary Data:

It is an extensive mode of collecting data.

Lot of time is spent.

It gives accurate result if sample is efficiently selected.

The data used is not outdated.

Reasons for selecting Primary Data:

In terms of primary data a structured Questionnaire was prepared to

interview the employees of insurance sectors from different departments, like

Accounts, U/W, Renewals, Motor Claims, Non Motor Claims, Legal, Agency,

Bancassurance and Marketing of Bajaj Allianz General Insurance Raipur.

Analysis clearly reflected the views and preferences regarding the perception

of the people towards training process in Bajaj Allianz General Insurance.

Step 4: To design Data Collection.

There are two types of modes to collect the data:

Observation Method.

Survey Method.

As far as the data collection method for this project is concerned, designing the data

collection method forms or survey forms is applicable to the project. The method

selected is survey method.

A Survey can be conducted by:

Personal Interview

Telephonic Interview

E-mail

Post

Amongst the above methods personal interview method was conducted to

gather information in detail. This method was chosen because along with the study of

project’s primary objective i.e. study of identification of training needs for Bajaj

Allianz General Insurance.

Data is collected by structured questionnaire and schedule.

Step 5: To determine sample design and sample size.

As soon as the researcher is ready with a formulated and developed research design

including a questionnaire he has to decide whether the information is to be collected

from all the people comprising the population.

There are two types of survey:

Sample Survey

Census Survey

From the two Samples survey is applicable to this project.

Characteristics of sample survey:

It is speedy.

It is cheaper than Census survey

It is economical.

More detail information is gathered.

Following are the different types of sample survey:

1. Random Sampling.

2. Systematic Sampling.

3. Stratified Random Sampling.

4. Disproportionate Stratified Sampling.

5. Cluster Sampling.

6. Multi stage Sampling.

7. Replicated Sampling.

8. Area Sampling.

9. Quota Sampling.

10. Judgment Sampling.

From these techniques Judgment Sampling was used to carry out the survey.

Judgment Sampling as the name implies, suggests that the sample from the total

population is purposively selected.

Sample Size Specification:

50 which includes Accounts dept., Agency dept., Marketing dept.,

Cattle Claim dept., etc.

Entire coverage for research was in Raipur District, Chattisgarh State.

Introduction:

Analysis of information as a part of scientific methodology of research process is a

fundamental base in any study. In other words, in this section, the researcher will

apply different methods of analysis to answer the specific issue or to make decision

for accepting or rejecting theory or theories, for the current research analysis, at first

the specification of statistical sample, its distribution, percentage and average of the

relevant questions of different dimensions of Service Industries.

Que. 1 Do you thing training has improved over the last two years?

Que. 2 Have you some times found it difficult to do your job, because of a lack of

technical knowledge?

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Yes

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Que.3 Have you any skills or knowledge that is not being used in your job?

Que.4 Did you ask to be transferred ever?

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No

Yes

Que.5 How effective is the team meetings?

Que.6 How often does your manager organize team meeting?

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Very Effective

IneffectiveVery Effective

Not Very Effective

Ineffective

LIMITATION

1. Vast – topic is very vast, so it’s very difficult to explain it/present it in few words or pages.

2. Time Limitation – as the topic is so vast therefore it requires more and more time, which is not available.

3. Lack of resources of information – there was only few resources from where I got the information about the topic.

As conclusion of the research report entitled “Training Needs Identification in Service Industries”,in brief the overall process can be following

Step 1: Define and chart part of the organisation in which the work has to be done. It is to have a focussed approach of the study. It could either be a particular department, a section, a unit, a specific group or a staff category.

Step 2: Use various data collection measures to collect both qualitative as well as quantitative data.

Step 3: Analyse the entire data collected in order to find out causes of problem areas and prioritise areas, which need immediate attention.

Step 4: Prioritise the different training programmes according to the responses collected.

Step 5: Record and file the entire data so that it can be used for future reference while designing the training programmes / training calendar.

Benefits of Needs Assesment

As pointed above needs assessment helps diagnose the causes of performance deficiency in employees that require remedial actions. This being a generalised statement there are certain specific benefits of needs assesment. They are as follows: -

• The organisation is informed about the broader needs of the participants. Through this process it may be possible that certain new training programmes, which were, previously not in their list may come to the forefront.

• The organisation is able to reduce the perception gap between the participant and his/her boss about their needs and expectations from the training programme.

• The organisation is also able to pitch its course input closer to the specific needs of the participants.

• It also saves a lot of money for the organisation as otherwise money is just unnecessarily wasted on those training programmes, which are either not needed by the employees or they have no interest in undertaking them.

• Lastly, time, which is the most important resource today, is also saved, as the training programmes conducted are the ones, which are actually needed by the participants.

Bibliography:

C.R.Kothari, Research Methodology, ‘Sampling Techniques’ in Wishva Prakashan,

2001

Webliography:

www.bajajallianz.co.in Company Profilewww.google.co.in Search engine for secondary data source ww.irdaindia.org Company Profile