Recruitment Practice In LIC

Human beings are social beings and hardly ever live and work in isolation. We
always plan, develop and manage our relations both consciously and
unconsciously. The relations are the outcome of our actions and depend to a great
extent upon our ability to manage our actions. From childhood each and every
individual acquire knowledge and experience on understanding others and how to
behave in each and every situations in life. Later we carry forward this learning
and understanding in carrying and managing relations at our workplace. The
whole context of Human Resource Management revolves around this core matter
of managing relations at work place.
Since mid 1980s Human Resource Management (HRM) has gained acceptance in
both academic and commercial circle. HRM is a multidisciplinary organizational
function that draws theories and ideas from various fields such as management,
psychology, sociology and economics.
There is no best way to manage people and no manager has formulated how
people can be managed effectively, because people are complex beings with
complex needs. Effective HRM depends very much on the causes and conditions
that an organizational setting would provide. Any Organization has three basic
components, People, Purpose, and Structure.
However in order to remain competitive, to grow, and diversify an organization
must ensure that its employees are qualified, placed in appropriate positions,
properly trained, managed effectively, and committed to the firms success. The
goal of HRM is to maximize employees contributions in order to achieve optimal
productivity and effectiveness, while simultaneously attaining individual
objectives (such as having a challenging job and obtaining recognition), and
societal objectives (such as legal compliance and demonstrating social
responsibility).

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What is Human Resource Management?

HRM is the study of activities regarding people working in an
organization. It is a managerial function that tries to match an
organizations needs to the skills and abilities of its employees.

Definition:
Human resources management (HRM) is a management function concerned
with hiring, motivating and maintaining people in an organization. It focuses on
people

in organizations.

Human

resource

management

is

designing

management systems to ensure that human talent is used effectively and

efficiently to accomplish organizational goals.
According to Dessler (2008) the policies and practices involved in carrying out
the people or human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising comprises of HRM.
In short Human Resource Management (HRM) can be defined as the art of
procuring, developing and maintaining competent workforce to achieve the goals
of an organization in an effective and efficient manner

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Recruitment Practice In LIC

Nature:
HRM is a management function that helps managers to recruit, select, train and
develop members for an organization. HRM is concerned with peoples dimension
in organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and
Principles. The functions and principles are applied to acquiring,
developing, maintaining and providing remuneration to employees in
organization.
2. Decision Relating to Employees must be Integrated. Decisions on
different aspects of employees must be consistent with other human
resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization.
Effectiveness of an organization will result in betterment of services to
customers in the form of high quality products supplied at reasonable
costs.
4. HRM Functions are not confined to Business Establishments
Only but applicable to non-business organizations such as education,
health care, recreation and like. HRM refers to a set of programmes,
functions and activities designed and carried out in order to maximize
both employee as well as organizational effectiveness.
HRM refers to a set of programmes, functions and activities designed and carried
out in order to maximize both employee as well as organizational effectiveness.

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Scope of HRM :
The scope of HRM is indeed vast. All major activities in the working life of a
worker from the time of his or her entry into an organization until he or she
leaves the organizations comes under the purview of HRM. The major HRM
activities include HR planning, job analysis, job design, employee hiring,
employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.
The scope of Human Resources Management extends to:

All the decisions, strategies, factors, principles, operations, practices,

functions, activities and methods related to the management of people as

employees in any type of organization.

All the dimensions related to people in their employment relationships,
and all the dynamics that flow from it.

The scope of HRM is really vast. All major activities n the working life of a
worker from the time of his or her entry into an organization until he or she
leaves it comes under the purview of HRM. American Society for Training and
Development (ASTD) conducted fairly an exhaustive study in this field and
identified nine broad areas of activities of HRM.
These are given below:
a) Human Resource Planning: The objective of HR Planning is to ensure that
the organization has the right types of persons at the right time at the right place.
It prepares human resources inventory with a view to assess present and future
needs, availability and possible shortages in human resource.
b) Design of Organization and Job: This is the task of laying down organization
structure, authority, relationship and responsibilities. This will also mean
definition of work contents for each position in the organization.
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Recruitment Practice In LIC

c) Selection and Staffing: This is the process of recruitment and selection of

staff. This involves matching people and their expectations with which the job
specifications and career path available within the organization.
d) Training and Development: This involves an organized attempt to find out
training needs of the individuals to meet the knowledge and skill which is needed
not only to perform current job but also to fulfill the future needs of the
organization.
e) Organizational Development: This is an important aspect whereby
Synergetic effect is generated in an organization i.e. healthy interpersonal and
inter-group relationship within the organization.
f) Compensation and Benefits: This is the area of wages and salaries
administration where wages and compensations are fixed scientifically to meet
fairness and equity criteria. In addition labour welfare measures are involved
which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality,
expectation and temperament. By and large each one of them faces problems
every day. Some are personal some are official. In their case he or she remains
worried. Such worries must be removed to make him or her more productive and
happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are very
important for enhancing peace and productivity in an organization. This is one of
the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral
science and industrial psychology throws better insight into the workers
expectations, aspirations and behavior. Advancement of technology of product
and production methods have created working environment which are much
different from the past.

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Recruitment Practice In LIC

Objectives of HRM :
The primary objective of HRM is to ensure the availability of competent and
willing workforce to an organization. The specific objectives include the
following:
1. Human capital: Assisting the organization in obtaining the right
number and types of employees to fulfill its strategic and
operational goals
2. Developing organizational climate: helping to create a climate in
which employees are encouraged to develop and utilize their skills
to the fullest and to employ the skills and abilities of the workforce
efficiently
3. Helping to

maintain

performance

standards

and

increase

productivity through effective job design; providing adequate

orientation, training and development; providing performancerelated feedback; and ensuring effective two-way communication.
4. Helping to establish and maintain a harmonious employer/employee
relationship.
5. Helping to create and maintain a safe and healthy work
environment.
6. Developing programs to meet the economic, psychological, and
social needs of the employees and helping the organization to retain
the productive employees.
7. Ensuring that the organization

is

in

compliance

with

provincial/territorial and federal laws affecting the workplace (such

as human rights, employment equity, occupational health and
safety, employment standards, and labour relations legislation). To
help the organization to reach its goals.
8. To provide organization with well-trained and well-motivated
employees.

9. To increase the employees satisfaction and self-actualization.

10. To develop and maintain the quality of work life.
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11. To communicate HR policies to all employees.

12. To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four
specific objectives: societal, organizational, and functional and
personnel.
1) Societal Objectives: seek to ensure that the organization becomes
socially responsible to the needs and challenges of the society while
minimizing the negative impact of such demands upon the
organization. The failure of the organizations to use their resources for
the societys benefit in ethical ways may lead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in
bringing about organizational effectiveness. It makes sure that HRM is
not a standalone department, but rather a means to assist the
organization with its primary objectives. The HR department exists to
serve the rest of the organization.
3) Functional Objectives: is to maintain the departments contribution
at a level appropriate to the organizations needs. Human resources are
to be adjusted to suit the organizations demands. The departments
value should not become too expensive at the cost of the organization it
serves.
4) Personnel Objectives: it is to assist employees in achieving their
personal goals, at least as far as these goals enhance the individuals
contribution to the organization. Personal objectives of employees must
be met if they are to be maintained, retained and motivated. Otherwise
employee performance and satisfaction may decline giving rise to
employ

Life Insurance Corporation of India (LIC):

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Recruitment Practice In LIC

LIC is the largest insurance group and company in India. Its a state-owned
where Government of India has 100% stake. LIC also funds close to 24.6% of the
Indian Government's expenses.
It has assets estimated of 13.25 trillion. It was founded in 1956 with the merger
of 243 insurance companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of India, the Life
Insurance Corporation of India currently has 8 zonal Offices and 113 divisional
offices located in different parts of India, around 3500 servicing offices including
2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of
Satellite Offices located in different cities and towns of India and has a network of
13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98
Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance business from
the public.
History:

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.

Before 1912 India had no Legislation to Regulate Insurance Business.

In the year 1912, the life insurance companies acts the provident fund act were
passed. LICs wide area network covers 100 divisional offices & connects all the
branches through a metro area network with satellite offices attached to about
some 50 branches. And has a network of around 1.2 million agents for soliciting
life insurance from the public. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct,2005, growth of 67% of previous year.

Mission:
Explore and enhance the quality of life of people through financial
security by Providing products and services of aspired attributes with

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Recruitment Practice In LIC

competitive

returns,

and

by

rendering

resources

for

economic

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

Objective:

Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial

cover against death at a reasonable cost.

Maximize mobilization of people savings by making insurance-linked

savings adequately attractive.

Conduct business with utmost economy and with the full realization that

moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective

capacities.
Promote amongst all agent and employees of the corporation a sense of
participation, pride and job satisfaction towards achievement of corporate

objective.
INTERNATIONAL OPERATIONS.
LIC has always acknowledged the need to expand. Our expanding efforts
have been consistent & are evident through our associations.

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