Human Resource Management Practices Of IGI Insurance Pvt Ltd. Report.

HRM Practices of AGI Insurance Ltd.

PROJECT

HUMAN RESOURCE MANAGEMENT

IGI INSURANCE Ltd.

Page 0 of 21

HRM Practices of IGI Insurance Ltd.

NAME Reg.#

Furqan Aslam (28733)

Program: MBA

Submitted to: Sir Moghis Jalal

D-O-S: 8th of Dec, 2015

ACKNOWLEDGEMNT

Page 1 of 21


We take this opportunity to express our profound gratitude and deep regards to our

teacher; Sir Moghis Jalal for his exemplary guidance, monitoring and constant

encouragement throughout the course. The blessing, help and guidance given by him

time to time shall carry us a long way in the journey of life on which we are about to

embark.

Lastly, we thank Allah almighty, our parents, brothers, and friends for their constant

encouragement without which this assignment would not have been completed.

Page 2 of 21


December 08, 2015

To

Sir Moghis Jalal

COURSE FACILITATOR

IQRA UNIVERSITY

KARACHI

Subject: Company HR Policies

Dear Sir Moghis Jalal,

As assigned to us in the beginning of the semester, we are submitting the report entitled HRM Practices of “IGI Insurance Ltd”.

This report examines all areas needed to start the aforesaid business, including Company Profile, Organization Chart HR strategies, and The role of HR as a Business Partner,

I hope you find this report satisfactory.

Sincerely yours,

Page 3 of 21


CONTENTS

1. EXECUTIVE SUMMARY......................................................................................5

2. GENERAL COMPANY DESCRIPTION...............................................................6

3. HEAD COUNT AND DEPARTMENT/BUSINESS UNITS:...............................10

4. THE ROLE OF HR AS STRATEGIC BUSINESS PARTNER:...........................10

5. ORGANIZATION CHART::.................................................................................11

6. INDUSTRIAL RELATION & UNION:................................................................14

7. RECRUITMENT AND SELECTION:..................................................................14

8. SEPARATION PROCESS:....................................................................................16

9. PERFORMANCE MANAGEMENT:...................................................................17

10. TRAINING & DEVELOPMENT:.......................................................................18

11. SUCCESSION & CAREER PLANNING:..........................................................19

12. HR OWN RATING STANDARDS:....................................................................20

Page 4 of 21

HRM Practices of AGI Insurance Ltd.

1. EXECUTIVE SUMMARY

The purpose of this report is to produce Human Resource Management practices of

IGI Insurance Pvt Ltd., a Pakistan based insurance company founded in 1953.

IGI insurance is headquartered in Karachi and has a centralized HR system. It

maintains limited workforce and thereby has 3 employees in HR department. Trainee

reports to assistant manager who reports to GM and GM reports directly to CEO.

The organization has 6 departments in total. Sales & Marketing Dept, Underwriting

Dept and Claims Dept perform primary activities in the organization whereas HR &

Admin Dept, Finance Dept, and IT Dept. perform support activities.

Their HR department plays a vital role as Strategic Business Partner of the

organization in planning and formulating policies etc. and has strict policies,

procedures and code of conduct which result in employee satisfaction and adherence

to Govt. laws.

The company follows a standard Recruitment process for which forecasting is done

on annual basis. Employees are interviewed (exit interview) before leaving the

organization for feedback and improvement purpose. The turnover of the company

remains in a single digit.

The company relies on bell curve method for performance appraisal where the

company keeps record of high and low performing employees and provide the

training and development accordingly. Appraisal is done on annual basis where

employee also perform self-appraisals which confirms that there is no discrepancy in

appraisals. T&D budget varies with time but most budget is spent on high potential

employees.

HR is responsible for creating a healthy and conducive environment between the

employee and employer and creates a pool of deserving candidates within the

organization for succession and career planning whereby employee goals are aligned

Page 5 of 21


with strategic goals that in turn enhances the employee performance and

commitment towards the organization.

2. GENERAL COMPANY DESCRIPTION

2.1 Introduction of the Company:

IGI is a public listed general insurance company (KSE: IGIIL) founded in 1953.

Being part of the Packages Group, IGI is the largest insurance company by market

capitalization. Headquartered in Karachi, IGI has offices in 7 cities nationwide and

offers a wide range of general insurance products including Fire, Motor, Marine,

Travel, Health Personal Accident and Home Insurance.

2.2 Vision:

IGI Insurance is committed to being one of the leading providers of solutions to risk

exposures in selected market segments in Pakistan.

2.3 Mission:

Their vision will be realized through:

Customers: Being the preferred insurer in providing solutions to risk exposure

Shareholders: Consistently delivering above market average return on capital

Employees: Providing the environment necessary to be the employer of choice

Community: Compliance with the highest ethical and moral standards

Page 6 of 21


2.4 Core Values:

Integrity: In conducting business they are inspired by and comply with the

principles of fairness, transparency, completeness, and efficiency. Their relationships

with employees and other stakeholders are characterized by honesty, co-operations

and mutual respect.

Professionalism: They define professionalism as a mindset towards perfection.

Their business model works on the philosophy of passion and customer delight.

They serve all their stakeholders with dedication, discipline, decisiveness and

distinction.

Commitment to Growth: Through their expertise, analysis and focus, they assure

growth for all their stakeholders.

Commitment to Excellence: Performing consistently at higher levels, striving

continuously for innovation, agility and optimization and responding vigorously to

change is their mark of excellence.

Page 7 of 21


LIST OF THE NAMES OF BOARD OF DIRECTORS:

NAME POST / DESIGNATION

Syed Babar Ali Chairman

Syed Hyder Ali Director

Syed Yawar Ali Director

Syed Shahid Ali Director

Shamim Ahmad Khan Director

Faryal Jooma Director

Tahir Masaud Chief Executive Officer

2.5 Their Clients:

Their clients include some of the leading names in Local and Multinational

enterprise. They work with a diverse group of companies and individuals across all

sectors and create value through an active partnership approach.

• Pharmaceuticals: Abbot Lab.

• Logistics: Agility Logistics

• Distribution: Ali Gohar& Company

• Construction: Bestway Cement

• Fuel Energy: Byco Petroleum(and many more prestigious companies)

Page 8 of 21


PRODUCTS:

• Home Insurance

• Auto Insurance

• Travel Insurance

• Health Insurance

• Fire Insurance

• Marine Insurance

• Miscellaneous Insurance

Page 9 of 21


3. HEAD COUNT AND DEPARTMENT/BUSINESS UNITS:

• 3 in total, Gen. Manager, Asst. Manager and trainee.

• There’s segregation between their work functions.

• Trainee has to report to the asst. manager and he will further report to the Gen.

manager who has to report directly to the CEO.

4. THE ROLE OF HR AS STRATEGIC BUSINESS PARTNER:

• Basically like any other department in the organization they do have their own

operational goals which in turn end up completing strategic goals. It’s impossible for

them like any other department to forgo the strategic goals as those are their ultimate

goal.

As they recruit, empower employees, do training and development etc they decide

by playing both operational in some parts and strategic roles, in other.

• HR business partner is a new concept and they, like other modern business

have also adopted this. He (the GM), himself being an important player in the

business, is working side-by-side with his CEO and Board of Directors (BODs) in

meetings.

• Being HR business partner, he comes across many challenges, authority and

responsibilities. Such as, workforce planning, succession planning, guidelines on

weekly or monthly basis for line managers to act towards achievement of the

strategic goal, HR policy guidelines, resolving employee issues, working with

management as well as employees to fill-in the gap, evaluating training results or

methods etc.

Page 10 of 21


5. ORGANIZATION CHART

Page 11 of 21


5.1 DEPARTMENTS:

Secretariat:

It has the responsibilities like support the secretary and legal teams, continually and

actively supervise calendar, agenda schedules, manage day-to-day matters in its

domain, administrative support in rooms or hotels bookings, organize and prepare

board, CEO or GMs , arranging meetings and setups for audit teams etc.

HR & Administration Department:

It includes all the functions related to employees and administration. Like training

and development, maintaining human resource records, travelling and ticketing,

counseling, and security to name a few.

Finance Department:

It has to look after all the financial and accounting affairs of the company including

book keeping, raising of finance, providing and lending money on most profitable

basis, being efficient and responsive at the same time, it also includes personnel who

work as financial advisor to the customers both internal and external on the basis of

their interpersonal and exceptional analytical skills and other such functions; except,

the management of wages which is handled by HR department.

IT Department:

Nowadays, every business is dependent on IT and without it everything would have

been a mess. They have to face many problems like communication both internally

and externally, operations, data management, MIS which are nearly ducked through

IT. They use intranet as a medium of communication inside of their company in 7

different regions of the country due to IT.

Page 12 of 21


Sales and Marketing Department:

They do need individuals and programs to sell their insurance policies and to provide

awareness to people whom they think are in need or would have a need through sales

agents. It’s roles include researching, updating, developing strategic plans for

marketing, analyzing competitive and regulatory environments, seek out new clients,

making clients understand all the pros and cons of certain policy to promote sales, to

name a few.

Claims Department:

It’s functions are of great importance in an insurance company like theirs include

providing advice on making claims and processes involved, processing new

insurance claims notifications, analyzing claims made by policymaker and the

payment for valid claims efficiently to the policyholders, investigating for fraud

claims, handling complaints about claims, taking responsibility for productivity and

profits etc.

Underwriting Department:

It has close co-operation with claims department as it has to look after all the types

of insurance they provide their customers be health, motor, fire etc to balance

between attracting and retaining through competitive insurance fees or by covering

any potential losses by claims. It’s functions also include studying insurance

proposals, calculating possible risks to be paid by individuals or organizations,

visiting brokers and potential customers and preparing quotes, ensuring premiums

are competitive, keeping detailed and accurate records of policies underwritten and

decisions made to name a few.

Page 13 of 21


6. INDUSTRIAL RELATION & UNION:

• They have company policies, procedures and code of conduct which they

abide by on strict and compulsory basis to ensure their employees satisfaction and

well being on their corporate and legal basis in accordance with the Govt. laws and

regulations.

7. RECRUITMENT AND SELECTION:

• They try to have a limited workforce, that’s why they are always analyzing the

internal environment of their organization for more or less changes required. They

analyze the needs of all the line managers in case of excellence, advancement or

increase or decrease in the number of individuals needed. The data they maintain is

relevant for future prediction and existing gap fillings internally or externally.

Forecasting is done on annual basis.

• The recruitment process starts when they realize and analyze a new job or

when an old employee is about to leave, they prefer their internal employees if they

are eligible for the place because this keeps them motivated and active. They also go

for external employees through recruiting agencies, LinkedIn, employee referrals or

through advertisement. As the CVs are received and analyzed and selected as per

their job requirement they call for screening the candidates to short list them through

different means, then they go for scheduling and conducting interview, with HR and

line manager or separately at times. Then as they further short list the candidates for

final interview in which they negotiate the offers, take and analyze manager and

candidate’s feedbacks after that they conduct background and reference checks,

enroll the employee, give a welcome session and have 1 month probationary period.

For the Executive posts the candidates also have an interview session with CEO

before selection.Page 14 of 21


• They rely primarily on their employees or referrals, as this helps in building

trust and motivation. Later, they equally rely on consultant agency and LinkedIn.

• As they themselves follow 7 stages in selection process he thinks they are as

per the standard.

Planning selection process

Preparing for interview

Conducting interview

Making decisions and reviewing them

Making offers

Reference and background checks

Doing paper work and taking aboard.

8. SEPARATION PROCESS:

Page 15 of 21


• The employees have to report and get the resignation signed 1 month before

leaving otherwise they have to face certain penalties. The information is then

circulated in all the support departments to make the final settlements and to incur

the records such as cancellation of certain on-job perks etc. They also conduct an

exit interview with the candidate to get feedbacks for their improvement purpose if

need be.

• Yes, they do have policy documentation of this procedure.

• They have the advantage of having employee turnover in single digit. Their

employees voluntarily leave from 65-75% due to getting jobs abroad, as Middle East

is offering more incentives to the people in insurance industries. 15% females leave

on account of marriages or due to children. And other 5-10% on both voluntary and

involuntary basis for realizing that insurance industry is not considered Halal by

Islam or totally changing the industry for more experience and due to being laid-off

or fired in extreme cases respectively.

• In particular, do not remember such experience right now to share, but exit

interview and employee feedback plays a great part in their success.

9. PERFORMANCE MANAGEMENT:

• They rely firstly maintaining bell curve by all possible means

Page 16 of 21


• They do performance appraisal on annual basis. The employees and the line

managers are meant to be on the same page while concerning the responsibilities

assigned to an individual as per that specific job requirement i.e. setting objectives

and for their achievement. Then the manager has to evaluate and assess the progress

of employee as per the pre decided goal. The manager and employee has to make

sure that they decide on their methodologies and they separately have to record their

views on the performance for the appraisal, realizing the gap in performance,

training and development needs, and increments in salaries which results in

motivated environment.

• Yes, they do have their procedures individually defined on job enlargement

and job enrichment.

10. TRAINING & DEVELOPMENT:

• Cannot share the budget in particular as it varies from time-to-time.

Page 17 of 21


• As the performance appraisal is done they already have collected the

information about an individual candidate by themselves, line manager and at HR

levels, that helped to examine all the gaps that might be required to fill-in through

training or any other such measures. They can analyze an employee’s areas of

weakness like lack of knowledge, education, skills or even in attitude in some cases.

This is how they evaluate and monitor training criterion for an individual and

sometimes it’s the need of the business that they have to fulfill through training.

After that they make all the necessary training sessions to eradicate or fill-in the gaps

in any employee’s performance.

They use customized training sessions in order to be more efficient and effective as

it is part of their functional goals.

• Most of the budget is spent on obviously the employee with high potential on

preferably senior levels because they also have to prepare employees for job

enrichment as well as job enlargement along with promotions and all. They also

support the education of their potential employees like recommending them, ACI

courses as in training needs and others.

11. SUCCESSION & CAREER PLANNING:

Page 18 of 21


• As already mentioned they analyze an employee’s performance at different

levels and an individual also analyzes his/her performance through all the daily or

monthly routine. The line manager and the employee discuss and evaluate the

performance that is recorded for further support. After performance appraisal, T & D

they come to this stage where an employee gets motivation through their succession

plans on the credibility basis. They give equal chances to every individual to have

plans which will be helpful for them and organization as well, for succession and

career planning. They try to create a pool of deserving candidates from with-in the

organization which results in employee motivation and trust building.

Their strategic goals are aligned with the goals of their employees as they

have to think about their career and where they want to see themselves in future.

They evaluate their progress through what their employees have to say about it and

what they think might be best for everyone within. Every individual has a right to

discuss any ideas or reservations with the line managers or with HR. That’s how the

employees realize that they also have a share in the progress of the organization as a

whole. Their CEO and upper management also try to take an equal part in the career

and succession planning process.

• They do realize that whatever training an individual is being given is going to

help them out in the long-run not only for the organization. This is achieved on a

major scale through customized training.

• They try to create a healthy and conducive environment between the employee

and employer, they bridge the gaps that both levels have and they try to monitor the

progress at both ends to make them meet and become progressive for the

development practices. Without HR the environment of the organization couldn’t

have self-motivated or committed employees.

• Best performing employees are always applauded and appraised and are

counseled when need be for better future plans on individual basis. Page 19 of 21


12. HR OWN RATING STANDARDS:

• He personally thinks that their strategic goals depend mostly on HR

department’s operations. Because they provide and take responsibilities of the

employees in their organization. It partly depends on their management and mostly

on having the advantage of being a business partner in the organization. They

are the ones who make and check that the things are done and are done efficiently

and effectively.

Page 20 of 21

Human Resource Management Practices Of IGI Insurance Pvt Ltd. Report.

Documents

Transcript of Human Resource Management Practices Of IGI Insurance Pvt Ltd. Report.