IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

INDEX
Sr. No. Contents Page No.
Chapter 1 Overview of Training & Development
1.1 Introduction of Training &Development 1
1.2 Training purpose, process and outcomes 4
1.3 Factors affecting training 8
1.4 Outcome Of Training 10
1.5 Methods Of Training. 11
1.6 Staff Training &Development. 15
1.7 Training and development objectives 17

Chapter 2 Human Resource Management

2.1 Role Of Trainee &Trainer 18
2.2 Role of government 21
2.3 Training and development policy 23

Chapter 3 Training and development in insurance

company.
3.1 Introduction of insurance industry 27
3.2 Insurance industry structure 30

3.3 Study of training and development in the 32

insurance sector in india.
3.4 Training procedure followed in insurance 34
sector/ in india

Chapter 4 Data collection and Analysis

4.1 Data analysis 46
4.2 Findings 55
4.3 Suggestions 57

Chapter 3 Conclusion 59

Chapter 4 Annexure
Bibliography
Webilography

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INTRODUCTION
Chapter 1
1.1TRAINING
Training is the continuous and the systematic development among all levels
of employees, knowledge, skills and attitudes which contribute to their
welfare and that of the company.
Training provides organization, the employee's with a caliber of increasing
the organization's productivity & profitability .Employee performance refers
to the ability of employees to perform a job in an effective and efficient way
to produce the best results.

When the employees are provided with the proper training, they will be more
committed towards their job and improve their performance in the
organisation. There are different types of training being given to the
employees like orientation/induction, refresher training, product training,
cross functional training etc.

Organisation must provide the training to the employees, if organisation

really wants the employees to perform well and has to improve the
productivity & profitability. Insurance is one such sector which concentrates
more and invests more on the employee training. This training should have
impact on the employees‟ performance.

Training is effort initiated by an organization to foster learning among its

workers, and development is effort that is oriented more towards broadening
an individual’s skills for the future responsibility. (George & Scott, 2012).
Training and development are a continuous effort designed to improve

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employees’ competence and organize performance as a goal to improve on

the employees’ capacity and performance.

Human Resource Management has played a significant role in the economic

develop-ment of most developed countries like Britain America and Japan.
In a developing country like Came-roon, with its rich natural resources and
financial support, one can also experience such economic suc-cess if the
appropriate attention is given to the development and training of her human
resources. Eve-ry aspects and activities in an organization involves people.
For instance, a manager will not be successful if he has subordinates who are
not well equipped with skills, knowledge, ability, and competence (SKAC).

To run an organization, be it big or small, requires staffing the organization

with efficient personnel. Specific job skills, ability, knowledge and
competence needed in the workplace are not efficiently taught `in the formal
education. As such, most employees need extensive training to ensure the
necessary SKAC to bring out substantive contribution towards the
company’s growth. For employees to be flexible and effective in their job,
they need to acquire and develop knowledge and skill, and for them to
believe that they are valued by the organization they work for, then they
need to see valuable signs of management commitments to their training
needs. Each new employee must be properly trained not only to develop
technical skills, but to make them an integral part of the organization.
Training and development is an aspect that must be faced by every
organization, and its major aim is to improve the employees’ competencies
such that the organization can maximize effectiveness and efficiency of their
human resources. It can be an advantage for an organization if they win the

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“hearts and minds” of their workers, getting them to identify with the
organization (Armstrong, 2009).
For workers to be equipped to perform well, there must be an investment in
the training processes.
These processes are part of the entire human resource management approach
which results in employees being motivated to perform. However, training
vary from organization to organization in relation to the quality and quantity
of training factors, which may include: the degree of external environment
change, the degree of change in the internal environment, current suitable
skills in the existing work force and the level to which the management see
training as a motivating factor in the workplace, (Cole, 2002).

Several companies address their needs for training in an impromptu and

indiscriminate way, training in such companies are pretty much impromptu
and unsystematic. Different companies however begin distinguishing their
training needs, then outline and execute training exercises in a normal way,
lastly evaluate after effects of the training.

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1.2TRAINING PURPOSE, PROCESS AND OUTCOMES

Cole (2002), mentioned in his book Personnel Human Resource

Management, that training is more of a learning activity to acquire better
skills and knowledge needed to perform a task.
The idea of training is the need for a greater productivity and safety in the
operation of specific equipment or the need for an effective sales force, to
mention a few.
To come up with the desired knowledge, skills and abilities from employees
to perform well at their job side, requires proper training programs that may
likewise have an impact on employee motivation and commitment.
Employees can either build or break their company's reputation as well as
profitability.
Moreover, they oversee most of the activities which can influence customer
fulfillment, the nature of the product and event.

WHY TRAINING IS IMPORTANT

According to G.P. Nunvi (2006), training programs are directed towards
maintaining and improving current job performance while development
seeks to improve skills for future jobs. Considering the progress in the
technology, certain jobs become redundant with the replacement of machines
in present days. Further education and competence becomes necessary for
those in current positions and those wishing to be promoted in the future.
Expressing an understanding of training, Armstrong (1996), emphasized that
training should be devel-oped and practiced within the organization by
appreciating learning of theories and approaches, if training is to be well
understood.

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Training & Development Scenario in India:

The business environment in India has gone through many rapid changes in
the recent past. The Government of India has brought about these changes in
the form of globalization liberalization and privatization. Organizations not
willing to change may not survive in the fierce competition.

Imparting training to the employees is important to organizational

development In India, attention has been given by the industry, government
as well as training institutes towards a systematic development of their
employees. As a consequence of the awareness of management training in
the country, there has been growing need to find ways and means to
determine the efficiency and effectiveness of training activity, from the point
of view of organizational improvement.

Indian Industry is presently on a fast development track. Improved

technology and techniques are being imported from developed countries. In
the context of globalization, human resource development with proper
training to the workforce is required to meet the challenges in future and to
win the global competitive advantage.

It, describes that the Indian Corporation for the first time realized the
importance of people in their new paradigm of business. Indian corporate
can achieve the competitive edge over rivals through innovation in the
market and in depth understanding of customer’s needs. The quality of
service component, and instrument to generate customer value, is naturally
determined by the people delivering it.

Indian companies have become innovative not only in how they recruit but
also in whom they recruit and where they look for talent. Most of them have

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developed a recruitment philosophy to hire for overall skill and aptitude

rather than specialized domain and technical skills. They rely on training and
development to bridge skill gaps. Instead of hiring only from top engineering
universities, technology companies recruit from second- and third-tier
colleges all across the country and also in arts and science schools. Similarly,
companies in the banking and hospitality industries hire from call-centers
and the information technology sector. Diversity programmes are also being
implemented, both out of necessity and social purpose. Women and older
workers in particular are being targeted by technology companies and call
centers, which are also reaching out to rural and disadvantaged communities.

In the technology sector, new-recruit training programmes typically span two

to four months. In other industries programmes range from two to four
weeks. The training curricular are generally highly sophisticated and teach
not only the required technical skills but also the basics of topics like
industry operations, customer management, communications, and team
building. Formal induction training is typically followed by on-the-job
training programmes in which employees are assigned specific tasks under
the supervision of trainers and managers.

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Future of Training:

The use of new technologies for training delivery will increase:

 Demand for training for virtual work arrangements will rise.

 Emphasis on capture and storage and use of intellectual capital will
increase.
 Companies will rely on learning management systems and integration
with business processes.
 Technologies allow trainers to build into training many of the
desirable features of a learning environment.
 Technology will allow training to be delivered to contingent,
decentralized employees in a timely, effective manner.
 Virtual work arrangements.
 Work that is conducted in a remote location.
 Employee has limited contact with peers.

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1.3FACTORS AFFECTING TRAINING

There are various factors influencing training extending from environment,

supervisors, lecturers, con-tent of the training and how it is being done.
These variables can be expounded and better understood by discussing them
below:

INDIVIDUAL FACTORS
At whatever point people are included in some sort of activity, or practice,
they generally influence the environment or process they are experiencing.
The same is the situation with employee training. As it is a process of
transferring skills and technology from the expert to the new learner. The
main parties are obviously workers themselves seeking training and the
trainer or member of the staff delivering the training. Authorities organizing
training and giving assets to it can be considered a third party, as they
oversee the prearrangement and post quality evaluation of training (Birdi
2005).

HUMAN RESOURCE POLICY

This has been illustrated by Haywood and based on the designed policy by
human resource for training programs. As indicated by him an excessive
number of training programs affects the main aim of train-ing, which is skill
development, and conduct change (Haywood 1992)

ORGANIZATIONAL FACTORS
Everything tends to be affected by its surrounding and environment, so too
with training organizers. Birdi claimed that the absence of managerial

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support could restrain the impact of creative training. in-conducive

environment affects training effectiveness. (Birdi 2005.)

OTHER FACTOR
To Fischer and Ronald open mindedness is additionally a factor in training
effectively. It has been claimed that training will be as much effective as the
learners and the instructors are open minded (Fischer 2011). Driskell stated
that the kind of training conducted, training content and training exper-tise
equally affect the results of training. Achievement depends on the way
training has been conducted by the trainer and its content (Driskell 2011).

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1.4OUTCOME OF TRAINING

There are good reasons to mandate training and development in an

organization, and there are bad reasons for authorization training. There are
also good reasons for not training, in some circumstances, and bad reasons to
refuse. Knowing what training can and cannot accomplish enables you to
make the right decisions at the right time, ensuring that your limited training
budget can be used effectively. Training can accomplish many things. It can
help people learn the new skills that are required to meet new expectations,
both formal and informal. For example, a support staff person may have
been recruited originally for his/her ability to type, to answer the phone etc.
But now, with increased workloads, we want that person to be able to do
much more...perhaps to solve client problems, to use desktop publishing
processes, to handle more of the day-to-day issues, so we can use our time
more effectively. Training can help people accept the challenge of their
evolving jobs.

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1.5 THE FOLLOWING IS A BRIEF OVERVIEW OF

TYPICAL METHODS OF TRAINING.

1. ORIENTATIONS

Orientation training is vital in ensuring the success of new employees.

Whether the training is conducted through an employee handbook, a lecture,
or a one-on-one meeting with a supervisor, newcomers should receive
information on the company's history and strategic position, the key people
in authority at the company, the structure of their department and how it
contributes to the mission of the company, and the company's employment
policies, rules, and regulations.

2. LECTURES

A verbal method of presenting information, lectures are particularly useful in

situations when the goal is to impart the same information to a large number
of people at one time. Since they eliminate the need for individual training,
lectures are among the most cost- effective training methods. But the lecture
method does have some drawbacks. Since lectures primarily involve one-
way communication, they may not provide the most interesting or effective
training. In addition, it may be difficult for the trainer to gauge the level of
understanding of the material within a large group.

3. CASE STUDY

The case method is a non-directed method of study whereby students are

provided with practical case reports to analyze. The case report includes a
thorough description of a simulated or real-life situation. By analyzing the

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problems presented in the case report and developing possible solutions,

students can be encouraged to think independently as opposed to relying
upon the direction of an instructor. Independent case analysis can be
supplemented with open discussion with a group. The main benefit of the
case method is its use of real-life situations.

4. ROLE PLAYING

In role playing, students assume a role outside of them and play out that role
within a group. A facilitator creates a scenario that is to be acted out by the
participants under the guidance of the facilitator. While the situation might
be contrived, the interpersonal relations are genuine. Furthermore,
participants receive immediate feedback from the facilitator and the scenario
itself, allowing better understanding of their own behavior. This training
method is cost effective and is often applied to marketing and management
training.

5. SIMULATIONS

Games and simulations are structured competitions and operational models

that emulate real-life scenarios. The benefits of games and simulations
include the improvement of problem-solving and decision-making skills, a
greater understanding of the organizational whole, the ability to study actual
problems, and the power to capture the student's interest.

6. COMPUTER-BASED TRAINING

Computer-based training (CBT) involves the use of computers and

computer-based instructional materials as the primary medium of instruction.
Computer-based training programmes are designed to structure and present
instructional materials and to facilitate the learning process for the student. A
main benefit of CBT is that it allows employees to learn at their own pace,

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during convenient times. Primary uses of CBT include instruction in

computer hardware, software, and operational equipment. The last is of
particular importance because CBT can provide the student with a simulated
experience of operating a particular piece of equipment or machinery while
eliminating the risk of damage to costly equipment by a trainee or even a
novice user.

7. WEB-BASED TRAINING

(WBT) is an increasingly popular form of CBT. The greatly expanding

number of organizations with Internet access through high-speed
connections has made this form of CBT possible. By providing the training
material on a Web page that is accessible through any Internet browser, CBT
is within reach of any company with access to the Web. The terms "online
courses" and "web-based instruction" are sometimes used interchangeably
with WBT.

8. SELF-INSTRUCTION

Self-instruction describes a training method in which the students assume

primary responsibility for their own learning. Unlike instructor- or
facilitator-led instruction, students retain a greater degree of control
regarding topics, the sequence of learning, and the pace of learning.
Depending on the structure of the instructional materials, students can
achieve a higher degree of customized learning. Forms of self-instruction
include programmed learning, individualized instruction, personalized
systems of instruction, learner-controlled instruction, and correspondence
study. Benefits include a strong support system, immediate feedback, and
systematization.

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9.AUDIOVISUAL TRAINING

Audiovisual training methods include television, films, and videotapes. Like

case studies, role playing, and simulations, they can be used to expose
employees to "real world" situations in a time-and cost-effective manner.
The main drawback of audiovisual training methods is that they cannot be
customized for a particular audience, and they do not allow participants to
ask questions or interact during the presentation of material.

10.TEAM-BUILDING EXERCISES

Team building is the active creation and maintenance of effective work

groups with similar goals and objectives. Not to be confused with the
informal, ad-hoc formation and use of teams in the workplace, team building
is a formal process of building work teams and formulating their objectives
and goals, usually facilitated by a third-party consultant. By recognizing the
problems and difficulties associated with the creation and development of
work teams, team building provides a structured, guided process whose
benefits include a greater ability to manage complex projects and processes,
flexibility to respond to changing situations, and greater motivation among
team members.

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1.6 STAFF TRAINING AND DEVELOPMENT

Process of improving and increasing capabilities of staff through access to

education and training opportunities in the workplace, through outside
organization, or through watching others perform the job.

Benefits of Staff Training and Development:

1. IMPROVES EMPLOYEE MORALE :With the help of training, the

employees gain job satisfaction and security. When a staff is very much
satisfied, then his morale is greater. By this way the employee contributes
more to organizational success and hence the absenteeism and turn over
would be less.

2. MINIMAL SUPERVISION :When an employee is trained he is well

accustomed to the job and hence requires very less supervision. By this
way times and efforts are reduced.

3. OPPORTUNITIES FOR PROMOTION :At times of training,

employees get the chance to acquire enhanced skills and knowledge
which offers them a clear way and enhanced opportunity for promotion.
By this way they become an asset for the organization. This is one of the
benefits of training staff.

4. PRODUCTIVITY INCREASES :With trained employees the

efficiency is increased which in turn increases the productivity. Quantity
as well as quality performance is achieved by the employees as they are
well trained.

5. BETTER ECONOMIC USAGE :Trained staff would have the

knowledge to make best economic usage of materials and equipment’s.
There will be less wastage, apart from accidents; damaged equipment’s in
the organization would be minimal in the case of trained employees.
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6. UNIFORM PROCEDURES :The best methods required for the

specific work are standardized and adopted by all the staff as an effect of
training. With the assistance of standardization, there is improved level of
performance.

7. SYSTEMATIC USAGE OF SKILLS :The main benefit of a training

program in an organization is that it helps to lessen the learning time so
that a level of performance is reached. The employees can learn from
training methods instead of following others or by trial and error method.

8. NEW INVENTORY SKILLS ARE DEVELOPED :An organization

may be in need of new skills for its operation and may face hindrance
with employment. Training can be beneficial in picking out the perfect fit
and eradicating defects if present in the recruitment process. Another
good suggestion would be to pick employees from within the
organization and train them rather than recruiting new employees.

9. UPDATED WITH LATEST TECHNOLOGY :There are constant

changes with the industry and hence it is important for employees to be
updated with the latest trends. It is quite often that new technology pops
up and hence one off training session would not be complete. In order to
make sure that the organization is making use of latest technology,
regular training is conducted.

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DESIGNING TRAINING AND DEVELOPING PROGRAM

Every training and development program must address certain vital issues. A
training program is successful if the objectives are achieved. (Zaccarelli,
1997) outlines the process of planning training as follows; it should look at
participants, trainers, methods and techniques to be used,
level of training and also venue. Several people, including the following may
conduct training and development program.
• Immediate supervisors

• Co-workers, as in buddy systems

• Outside consultants,

1.7 TRAINING AND DEVELOPMENT OBJECTIVES

(Armstrong 1996) argues that training needs analysis should cover problems
to be solved, as well as future demands based on whether the organization
must acquire new skills or knowledge or must improve existing
competencies.
Once training needs are assessed, training and development objectives must
be established. Without clearly set objectives, it is not possible to design a
training and development program and, after it has been implemented there
will be no way of measuring its effectiveness. Goals must be tangible,
verifiable, and measureable.

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Chapter 2: HUMAN RESOURCE MANAGEMENT

Roles Of Trainee & Trainer

2.1 Role of Trainees:

The trainee is a major stakeholder in a training programme. The whole

training programme is developed for the trainees only. Each candidate plays
an important role in the transfer of training because one participant's attitude
regarding the training influence the other participants and also each
participant can assist by advancing the learning process to realize the
training objectives. Participant's willingness to invest in the programme is
directly proportional to the benefits of the learning that the trainee could
expect. Each participant forms their own perception towards training. Some
perceptions remain the same during the programme, while some fade
depending upon the assessment of a programme by the participant. Some
personal factors that affect the trainee's learning are:

 Family Situation
 Personal Problems
 Relation between the training programme and personal objective
 Level of self esteem
 Benefits expected from training
 Comfort level with the trainer
 Learning style of trainee
 KSA of trainee
 Previous training experiences
 Desire for professional growth and development

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Some environmental factors that affect the trainee's learning are:

 Relationship with colleagues and subordinates

 Training team
 Trainer team
 Training objective
 Content of training
 Training design i.e. methods, techniques, and strategies
 Environment in the programme
 Composition of training group

No matter how good the training programme is, in the end it is the
participant only who decides whether to change his behavior or not. Trainees
do not change their behavior merely because someone tells them to doThey
do it with their own learning style. The trainer and the organization can only
try to remove the mental blocks of the trainee, rest depends on trainee itself.

Role of Trainer:

When it comes to training, Trainers play a critical role before and after an
employee is nominated for a course. The company's return on its training
investment is the involvement a trainer in reviewing coursework.

1. A trainer has to be aware of his team's skills. He has to know each

individual's strengths and weaknesses as well as those of the team as a
whole. He has to cross- reference those skills with the needs of the
organization and have a clear road map of what projects are in the pipeline
for his team. By doing this, he can quickly decide what courses are valuable
and which are unnecessary for his team to pursue.

2. A trainer should do some investigation into what training opportunities are

available in the industry. He can enquire into human resources of reputable

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firms. With this list, he can make educated decisions when an employee asks
for training.

3. He should suggest training to employees. Many times, a trainer waits until

employees approach him before agreeing to training. Instead, a trainer
should be proactive and study the business needs and employees skills to
decide who needs to train in what areas. That way, when bad time comes for
a project, he'll have the team better learned to face the technology.

4. A trainer should develop training benchmarks. When an employee wants

to take several courses toward certification or a degree, a trainer should have
points where he checks in on the person's progress. He should communicate
those points clearly to the employee as well as the expectations of training.
For instance, has the employee shown how the training benefitted the
company? Has the employee received good remarks from the instructor? Or
has the employee outlined a career path with the company? These are all
tangible questions to ask during the checking of progress.

5. After an employee finishes training, the trainer should have a debriefing.

Was the training on-track for the project? Will the employee need more
training? Was the instructor good? Was the coursework appropriate for the
situation? Should other team members take the course? How will the
employee be using what has been learned to improve the network? Will
employee be able to teach other members of the team what they learned?
The trainer can get these answers through a report from the employee or a
face-to-face meeting. He then should communicate the results to his upper
management so that the training budget is kept intact or improved in the next
fiscal year. He should also report back to human resources if the employee
liked or disliked the training. This is valuable information for the whole
company.

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REVIEWING THE AGENDA

At the beginning of the training programme it is very important to review the

programme objective. The trainer must tell the participants the goal of the
programme, what is expected out of trainers to do at the end of the
programme, and how the programme will run. The following information
needs to be included:

 Kinds of training activities

 Schedule
 Setting group norms
 Housekeeping arrangements
 Flow of the programme
 Handling problematic situations

2.2 ROLE OF THE GOVERNMENT

Training delivery is totally by the enterprise under the Apprentices Act,

1961.

However, the following functions are performed by the state or the central
government in the implementation of the apprenticeship training scheme:

 Development of legislation and policy under the Apprentices Act,

1961;
 Provision of loans by state governments, for the setting up of training
centers, where so required by the enterprise;
 The expenditure incurred by the enterprise in the training of
apprentices is 100 per cent exempted under the Income Tax Act;
 The central government also reimburses 50 per cent of the cost of
training for graduates, diploma holders and technician (vocational)

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apprentices; in addition, 50 per cent of the cost of training for fresher

trade apprentices is also reimbursed by the concerned government
 In the case of enterprises with fewer than 500 employees in total;
curricula for the different trades under craftsmen and apprenticeship
training schemes are developed by trade committees appointed by the
Directorate General of Employment and Training;
 Refresher training/retraining for instructors at training centers is
carried out at the advanced training institutes of the Directorate
General of Employment and Training:
 Courses for officers are provided at the Central Staff Training and
Research Institute, Kolkata.
 Quantitative and qualitative inspection/monitoring of the training
programmes
 Conducted by the enterprises are carried out by the respective
governments.
 After completion of training in enterprises, all apprentices are trade
tested by the Directorate General of Employment and Training and
National Apprentice Certificates are issued to all apprentices who pass
the test.

The cost of theoretical/related instruction carried out by the

enterprise is reimbursed by the respective governments and exemption of
customs duty for training equipment is granted on the recommendation of
the Directorate General of Employment and Training.

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2.3 TRAINING & DEVELOPMENT POLICY

Definitions: Training and development policies are the organization‘s

demonstration of organizational quality. As such, an effective modern
training and development (or learning and development) policy is an
increasingly important part of any organization's visibility and image in the
eyes of its customers, staff, potential new employees, and the market as a
whole.

Training policies vary greatly because they are liable to be very specific for
the organization. Broadly, a good training and development policy will cover
the training aspects. There is no set or definitive order. Other people and
organizations will have different ideas. The challenge in developing an
effective training policy is including all the key issues but at the same time
keeping it concise and compact, so employees will read and refer to it.

A training policy is a set of principles. A policy is more fixed and concise A

policy provides the principles and system on which the training methodology
can be built. A policy reflects philosophy and values and fundamental aims.
Based on training policy training manuals are prepared and they contain
operating procedures, instructions and supporting notes that are specific to
the training concerned. Most training manuals are more liable to change than
a policy, and this flexibility for changing and updating content is an
important aspect in deciding the overall system for producing and
administrating training manual documentation, which is best addressed and
defined in the training policy.

According to Saxena & Kakkar, the formulation of proper training policy

becomes essential with the need for planning to suit the changing business
environment. Absence of training policy results in low productivity and
unhealthy results. In actual practice it is noticed that training managers are

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just interested in conducting training programmes as a routine exercise

without specific goals required for organization. A general tendency is to
conduct more and more training programmes in rapid succession without
ensuring the validity, the up datedness, in formativeness and efficacy of
training activities based on ground realities. Therefore it is right time for a
suitably training policy be formulated by each organization which should be
broad based and which should clearly identify the persons by level who
should be selected for training in the larger interest of the organization who
when and for which training programme. The policy should have the
objectivity, fairness and detailed outlook. What types of personnel attend the
right type of training programme then the dynamics of training is achieved.
On the other hand if the staff is not suitably nominated they will find training
irrelevant in spite of well researched input.

There are a number of ways of assessing the results of training. These

includes:

 Pre- and post – course questionnaires to test increase in knowledge.

 Observation of the trainees while on the training programme and their
behaviour on the return from it.
 Interviewing trainees.
 Measured changes in performance, particularly in terms of delivery
against targets set as part of a performance management process.

Whatever process of evaluation is used it should seek to ensure that any

changes observed are as a result of the training and not for some other,
unrelated reason. Ideally, therefore, the evaluation process should be
carefully designed, possibly even with the use of control group, although
time and cost constraints probably make such comprehensive studies
impractical for most organizations.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

JOB EVALUATION

Job evaluation is part of the organization’s human resource planning process.

Once the overall strategy and objectives have been determined, and the
structure has been developed, the next step is to establish the required level
of human resources, i.e.to get the right people with the right skills in the
right place at the right time. This in turn means having effective selection
processes and all the necessary systems to ensure the retention and
motivation of staff.

The purpose of job evaluation is to compare all the jobs in the organization,
one with another, with the aim of producing a rank order.

Principle of Job Evaluation:

Definition:

Pritchard and Murlis define job evaluation as: ‘a process for judging the
relative size or importance of job within an organization’ . There are number
of implications and principles underlying the definition.

Job Evaluation Is A Process

Job evaluation is a systematic method or process, as opposed to an approach

that is random or non-systematic. This means that jobs are considered
against the same criteria in each case, which should ensure consistency. The
alternative is a non-analytical approach in which in job is considered in
isolation and against what may be entirely different considerations in each
case. In such a situation it is not possible to make objective comparisons
between jobs and the final judgments are likely to be inconsistent.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Job Evaluation Is Judgmental :

Job evaluation is sometimes perceived and described as scientific. This it

most definitely is not. In any job evaluation scheme, no matter how
sophisticated where a job is placed in relation to another is a matter of
judgement on the part of the evaluators. It certainly should be systematic,
however, and a make a judgements about job using common standards. If
individuals are left to judge job size without this guidelines the result is that
different standard and criteria are likely to be used and it will be like trying
to compare eggs with apples.

It is important to remember that job evaluation is one of the processes to help

manage the organization and that the intention is to achieve the maximum
objectivity.

It Is About The Relative Size of Jobs:

Job evaluation is a comparative process and ultimately the aims is to

compare one job with another. Allocating points to a particular job is an
indication of the size of that job in relation to others in that organization,
based on the particular criteria contained in the job evaluation method used.
Although some job evaluation schemes do facilitate comparisons between
organizations, the keys measure is one of relativity.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Chapter 3INSURANCE INDUSTRY

3.1 INTRODUCTION
The advent of life insurance business in India is with the establishment of
Oriental LifeInsurance Company, Calcutta in 1818. Boon for economic
development provides long- termfunds for infrastructure development at the
same time strengthening the risk taking ability ofthe country.

Today there are 27 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 24 life insurance companies
in the country.

Insurance Industry is regulated by the INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY(IRDA).

INDUSTRY STRUCTURE / MARKET SIZE

In Insurance industry, insurance can be of various types like automobile
insurance, fire insurance, life insurance etc. In case of any damage to the life
or asset to the insured person due to the reasons mentioned in the policy, her
or his representatives are entitled to receive the insurance cover money. This
amount is calculated by the insurance agent on the parameters of loss
incurred, its type and the amount of premium paid by the insured entity.

India's life insurance sector is the biggest sector in the world with about 360
million policies which are expected to increase at a Compound Annual
Growth Rate (CAGR) of 12-15 percent over the next five years. The
insurance industry plans to hike penetration levels to five per cent by 2020.
At the period of April 2015 to February 2016, the life insurance industry
recorded a new premium income of Rs 1.072 trillion (US$ 15.75 billion),
indicating a growth rate of 18.3 per cent. The general insurance industry

28
 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

recorded 14.1 per cent growth in Gross Direct Premium underwritten in

FY2016 up to the month of February 2016 at Rs 864.2billion (US$ 12.7
billion) (IRDA).
R. Anitha et. al., / International Journal of Management Research & Review
The country‟s insurance market is expected to quadruple in size over the
next 10 years from its current size of US$ 60 billion. During this period, the
life insurance market is slated to cross US$ 160 billion. The general
insurance business in India is currently at Rs 78,000 crore (US$ 11.44
billion) premium per annum industry and is growing at a healthy rate of 17
percent (IRDA).
The Indian insurance market is a huge business opportunity waiting to be
harnessed. India currently accounts for less than 1.5 per cent of the world‟s
total insurance premiums and about 2 per cent of the world‟s life insurance
premiums despite being the second most populous nation. The country is the
fifteenth largest insurance market in the world in terms of premium volume,
and has the potential to grow exponentially in the coming years.
Nowadays, insurance is a vital need of the people and the organizations to be
prepared for any unforeseen and unfortunate event or mishap (IRDA).

Training is compulsory to employees in the insurance industry. They have to

undergo with the orientation/induction at the time of joining, refresher and
product training frequently.
These training ensure the improvement of employees performance in the
organisation. This study was conducted to find out the impact of training on
employees‟ performance of Private Insurance Sector in Coimbatore district.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

The main Objectives of this research are to study the impact of training on
employees performance and to know the determinant factors that determine
the employee productivity.

Population of the study, Impact of Training on employee performance in

Private Insurance Sector, Coimbatore District” is 10 companies from both
life & non-life insurance sectors. Employees of Private Insurance Sectors in
Coimbatore District are taken for this study.

Sample refers to the respondents. Sampling is the process of choosing a

representative portion of the entire population, the population of employees
in private insurance sectors in Coimbatore district. Employees present in all
departments of the company are selected for the study which comes around
15-20 in number.

Sampling Unit: Refers to the place of the study, which is in Coimbatore.

Sampling Technique followed is the Random Sampling Method.

Sample Size of the study is 75 respondents from the 10 companies of Private

Life & Non-life insurance sectors.

Data Collection has been done through the primary data collection by
“Questionnaire Method” designed with questions on the different aspects
of employee performance and given with 5 point Likert scale rating choice to
the respondents for choosing demographic
details.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

3.2 STATEMENT OF THE PROBLEM:

Employee training is a learning experience, it seeks relatively permanent

changes in the employees that improves their job performance . Insurance
industry is the major contributor in Indian economy . The insurance sector is
a colossal one now, witha consistent growth rate of 32% - 34% and its
present worth is 41 billion US dollars (CII). Insurance services add about 7%
to the country‟s GDP. Employees in insurance sector of Coimbatore district
- the Life Insurance, Non-Life Insurance (Medical Insurance &
General Insurance) are studied for this research.
The reason for this study is the importance of training in industrial sector has
become necessary one to impart knowledge and skills to employees for the
better performance, in the job Industries like insurance sector are
concentrating more on training both freshers and existing employees. The
time and money spent on training in insurance industry is also comparatively
more. But, its a big question. Does the training bring changes in the
employees‟ tendency, attitude & performance?
They seems self-oriented or towards the self-development than contributing
for the companys development. Hence the attrition rate in the insurance
sector is also high. Employees are moving to other companies after acquiring
the necessary skills through the training provided by the previous companies.
How does the organisation get benefited through the employees
performance? Is there improvement in employees‟ productivity and
organisations profitability? Hence, this study has been conducted to find out
the effective and efficient functioning of employees after the training.
The effective functioning of an organisation depends upon the efficiency or
capability of the human resources. This human resource‟s potential can be
elevated to the next level through the proper training which helps the
organizational growth & success.
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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

In the insurance sector, the training and development function holds a key
responsibility by helping employees to upgrade their performance on a
continuous basis.A study by ShefaliVerma & Rita Goyal (2011) analyzed
the status of the various training and development
practices in Life Insurance Corporation in India and explores the proposed
link between the training and employees productivity. This study emphasizes
the importance of training for the
effective functioning of the organisation.

The employee performance is measured in terms of the improvement in

Productivity,Absenteeism and the Employee Job Satisfaction. Prasadini
Gamage & Mr. Lionel Imbulana (2013) N conducted a study for identifying
the effectiveness of the training and development of the call center staff of
the Sri Lanka Telecom. The performance was measured with the dimensions
of employees Productivity, Absenteeism and the Job Satisfaction. The
statistical analysis of the study revealed that that there is a significant
positive relationship between the training &development and the employee
productivity.

Training plays vital role in the building ofcompetencies of new as well as

current employees to perform their job in an effective way.Their study in
hand chiefly focuses on the role of training in enhancing the performance of
the employees. It also prepares employees to hold future position in an
organization with full capabilities and helps to overcome the deficiencies in
any job related area. Training is considered as that sort of investment by the
firm that not only brings high return on investment but also supports to
achieve competitive advantage.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

3.3STUDY ON TRAINING AND DEVELOPMENT IN THE

INSURANCE SECTOR IN INDIA

Insurance is a subject listed in the Union list in the Seventh Schedule to the
Constitution of India. The insurance sector has gone through a number of
phases by allowing private companies to solicit insurance and also allowing
increased foreign direct investment from 26% to 49% in 2012. Indian
Insurance sector was thrown open to competition in 2000 and has evolved
since then; thanks to robust regulatory framework, positive business
environment and economic growth. Government-owned Life Insurance
Corporation (LIC) of India is the country’s largest insurer, controlling
approximately 65 per cent of the market. Life insurance penetration in India
is about 4.4 per cent of the country’s gross domestic product (GDP) in terms
of total premiums underwritten annually, according to the Insurance
Regulatory and Development Authority (IRDA).

The penetration is quite less in India as against its peers and insurance sector
requires employees who have strong critical thinking skills, the ability to get
the most out of people and the ability to rise where everybody is. Hence, the
Indian insurance market provides ample opportunities to domestic and
international players to harness the profitable avenues in the same.
(http://www.ibef.org/industry/insurance-sector-india.aspx) Training and
development is of paramount importance at this juncture. As any other
industry in the growth phase, the insurance industry has the capacity to
create a large number of job opportunities.

Training requirements in the insurance industry vary according to levels in

the organization. People in the insurance industry may be segmented into
sales, non-sales and senior management/ board. Training programs may be

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

designed accordingly. The most frequently delivered training modules in the

industry are designed for sales managers and agents. These modules
emphasize on sales effectiveness, product knowledge, sales communication
and relevant technology. The ones for non-sales staff are typically technical
in nature, which senior management is trained on regulatory and corporate
governance aspects.

India Insurance Sector : Market Share of the Major Companies Figure 1

shows the market share of top insurers in India in the period till April 2012:
Figure 1 : Market share of the major companies in the insurance sector in
India (http://freepress.in/wp-content/uploads/2010/10/market share 2012.jpg)
Training Procedures Followed in the Insurance Sector Training and
development is the field which is concerned with organizational activity
aimed at bettering the performance of individuals and groups in
organizational settings. It has been known by several names, including
human resource development, and learning and development. Training and
development (T&D) encompasses three main activities: training, education,
and development. Training: This activity is both focused upon, and evaluated
against, the job that an individual currently holds.  Education: This activity
focuses upon the jobs that an individual may potentially hold in the future,
and is evaluated against those jobs.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Figure 1 : Market share of the major companies in the insurance sector in

India

3.4 Training Procedures Followed in the Insurance Sector

Training and development is the field which is concerned with

organizational activity aimed at
bettering the performance of individuals and groups in organizational
settings. It has been
known by several names, including human resource development, and
learning and development.
Training and development (T&D) encompasses three main activities:
training, education, and

35
 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

development.
 Training: This activity is both focused upon, and evaluated against,
the job that an individual
currently holds.
 Education: This activity focuses upon the jobs that an individual may
potentially hold in
the future, and is evaluated against those jobs.
309
 Development: This activity focuses upon the activities that the
organization employing the individual, or that the individual is
part of, may partake in the future, and is almost impossible to
evaluate. Favourable economic climate and number of other
factors such as, growing urbanization, increasing consumerism, rise
in the standard of living, increase in financial services for people
living in rural areas, etc has increased the demand for wide range of
financial products that has led to mutually beneficial growth to the
insurance sector and economic growth process.
This was coincided by technology development in the insurance operations.

Types of training given in insurance sector include:

 Skills training
 Refresher training
 Cross functional training
 Team training
 Orientation training

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Figure 2: represents the various types of training modules administered

across different levels in the insurance sector.

STUDY ON THE TRAINING PROCEDURES BEING

FOLLOWED IN THE INSURANCE SECTOR IN INDIA
The present study helped to investigate and analyse the current trends
training and development initiatives adopted in the Insurance
Companies. A sample size of 60 employees working in some of the well-
known insurance companies was taken for the study. The major observations
obtained from the study were as follows:

 Training is conducted for all levels of employees

Example:Among 60 employees 35 employees strongly agreed, 10
employees agreed and 15 employees disagreed with the fact that the
training is being conducted for all levels of employees in the organization.

 Frequency of the Training Programmes

Among the 60 employees surveyed 7 respondents reported that training is
being organized for them once in a year, 20 employees said training is being

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

organized for them once in every half year, 10 employees said that training is
organized for them once in every quarter and 13 employees said that training
programmes are organized in their company once in every month.
Thus we can say that the frequency of training programmes for the
employees in the Insurance Companies is generally once in every quarter
and once in every half year.

 Induction Training for the Newly Recruited Employees

Among the 50employees who were questioned in order to find out that
whether Induction Training Programmes are being organized for the newly
recruited employees ,40employees agreed and 10 disagreed .Therefore it
could be inferred that all the major Insurance Companies do organize
Induction Training Programmes for the newly recruited employees.

 Training Methods Being Employed

Among the 50 employees surveyed 25employees said that their organization
adopted On the Job Training methods, 12employees said that their
organization adopted Off the Job Training methods and 9 employees said
that their organization adopted both On the Job as well as Off the Job
Training Methods. Thus we can say that the Insurance Companies
generally follow On the Job Training Methods.

 On the Job Training Methods Being Used

Among the 56 employees;20employees said that their organization makes
use of Mentoring in order to provide training to the employees, 11
employees said that their organization used Coaching in order to provide
training to the employees and 9employees said that their organization used
Job Instruction Training Method in order to provide training to the
employees.
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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Thus we can say that the Insurance companies generally followed

Mentoring and Coaching methods in order to provide training to the
employees.

 Off the Job Training Methods Being Used

Among the 50employees ;10employees said that the organization makes use
of Lecture Method in order to provide training to the employees,
10employees said that their organization used Role Playing in order to
provide training to the employees, 3 said their organization used
Programmed Instruction Method and 4 employees said that their
organization used Conferences and discussions in order to provide training to
the employees.
Thus we can say that the Insurance companies generally followed Role
Playing and Lecture Method in order to provide training to the employees.

 Appointment of Trainer
Among the 60employees being surveyed;45 employees responded that the
trainers for the training programme were being appointed by the organization
from outside the organization. 35 employees said that the Senior employees
acted as trainer for their subordinates in the organization.

 Do the Employees Attend the Training Programmes Being

Organized for Them Regularly?
48respondents replied that they have regularly attended the training
programmes being organized for them by their organization and
12employees felt that they were irregular at the training programmes.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

 Satisfaction of the Employees About the Trainers Being Selected

40 employees were satisfied with the selection of the trainers in their
organization and 20 employees were dissatisfied with the selection of the
trainers in their organization.

 Areas Covered Mostly in Training

30employees said that their organization concentrated mostly in
providing training in knowledge, 10 felt that their organization concentrates
in providing training in techniques,9 employees said that their organization
provided training mainly in the area of Technical
skills and 11employees felt that their organization provided training mainly
in the area of Social Skills.
Thus we can say that Knowledge and Social Skills are the two areas in which
he Insurance Companies provided training to the employees.

 Soft Skills Training

49 employees said that their organization provided them Soft Skills
training and 11 employees said that their organization did not provided
them soft skills training.
Thus we can say that the Insurance Companies did provide Soft Skills
Training to their employees.

 Team Training
51 employees said that their organization provided them Team Training
whereas 9 employees said that their organization did not provided them
Team Training.
Thus we can 312 say that the Insurance Companies did provided training to
their employees about various aspects of working in a team.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

 Creativity Training
10employees said that their organization provided creativity training to their
employees whereas 50 employees said that the organization did not provided
creativity training to their employees.
Thus we can say that the Insurance companies did provided Creativity
training to the employees.

 Evaluation of Skills, Knowledge and Abilities Before Training

34employees said that their organization evaluated their skills, knowledge
and abilities before conducting the training programmes whereas 26
employees said that their organization did not evaluated their skills,
knowledge and abilities before conducting the training programmes.
Thus we can say that the Insurance companies did evaluate the skills,
knowledge and abilities of the employees before conducting the training
programmes.

 Evaluation of Skills, Knowledge and Abilities During the Training

26employees said that their organization evaluated their skills, knowledge
and abilities during the training programme whereas 34 employees said that
the organization did not evaluated their skill, knowledge and abilities during
the training programme.
Thus we can say that the Insurance Companies did not evaluate the skills,
knowledge and abilities of the employees during the training.

 Evaluation of Skills, Knowledge and Abilities After the Training

50 employees said that their organization evaluated their skills, knowledge
and abilities after the training programme is over whereas 10 employees said
that the organization does not evaluated their skills, knowledge and abilities
after the training programme.
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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Thus we can say that the Insurance Companies did evaluate the skills,
knowledge and abilities of the employees after the training programmes is
over.

 Feedback Collected About Training from the employees

15 employees said that the organization collected feedback about the training
programme and the trainer from the employees whereas 25 employees said
that the organization did not collected feedback from the employees about
the training programme and the trainer after the training programme was
over.
Thus we can say that the Insurance Companies do not collect the feedback
from the employees about the training programme and the trainer after the
training programme is over.

 Training Programme Helps in Career Development

15 employees said that the training programmes being organized in
their organization helped them in career development to a great extent,
to 25employees the training programmes being organized in their
organization helped them in career development to 313 some extent, to
14employees the training programmes being organized in their organization
helped the employees in their career development to a very little extent and
6employees
said that the training programmes not at all helped the employees in career
development.

 Training Provided Helps in Day to Day Job Responsibilities to the

Employees
35 employees said that they were able to employ the skills, knowledge and
abilities learnt in the training programmes being organized by their
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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

organization to a great extent, 15 said that they were able to employ them to
some extent, 5employees said that they employed them very little and
5employees said that they did not employed the skills, knowledge and
abilities.
Thus we can say that the employees working in the Insurance companies
were able to use the skills, knowledge and abilities learnt in the training
programmes being organized by their organization.

 Use of Latest Technology

15 employees said that their organization made use of latest technology in
the training programmes whereas 45 employees said that their organization
did not make use of latest technology in the training programmes organized
by their organization.
Thus we can say that the Insurance Companies do not make use of
latest technology in the training programmes.

 Employees Opinion About the Training Programme

25 employees felt that the training programmes being organized by their
organization were excellent, 13 felt it was good, 13felt fair and 9 felt that the
training programmes being organized by their organization were poor.

 Motivational Training
45 employees said that the organization provided them motivational training
whereas 15employees said that their organization did not provided them
motivational training.
Thus we can say that the Insurance companies did provide Motivational
training to the employees.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

3.5 Training & Development Scenario in India:

The business environment in India has gone through many rapid changes in
the recent past. The Government of India has brought about these changes in
the form of globalization liberalization and privatization. Organizations not
willing to change may not survive in the fierce competition.

Imparting training to the employees is important to organizational

development In India, attention has been given by the industry, government
as well as training institutes towards a systematic development of their
employees. As a consequence of the awareness of management training in
the country, there has been growing need to find ways and means to
determine the efficiency and effectiveness of training activity, from the point
of view of organizational improvement.

Indian Industry is presently on a fast development track. Improved

technology and techniques are being imported from developed countries. In
the context of globalization, human resource development with proper
training to the workforce is required to meet the challenges in future and to
win the global competitive advantage.

It, describes that the Indian Corporation for the first time realized the
importance of people in their new paradigm of business. Indian corporate
can achieve the competitive edge over rivals through innovation in the
market and in depth understanding of customer’s needs. The quality of
service component, and instrument to generate customer value, is naturally
determined by the people delivering it.

Indian companies have become innovative not only in how they recruit but
also in whom they recruit and where they look for talent. Most of them have
developed a recruitment philosophy to hire for overall skill and aptitude
rather than specialized domain and technical skills. They rely on training and
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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

development to bridge skill gaps. Instead of hiring only from top engineering
universities, technology companies recruit from second- and third-tier
colleges all across the country and also in arts and science schools. Similarly,
companies in the banking and hospitality industries hire from call-centers
and the information technology sector. Diversity programmes are also being
implemented, both out of necessity and social purpose. Women and older
workers in particular are being targeted by technology companies and call
centers, which are also reaching out to rural and disadvantaged communities.

In the technology sector, new-recruit training programmes typically span two

to four months. In other industries programmes range from two to four
weeks. The training curricular are generally highly sophisticated and teach
not only the required technical skills but also the basics of topics like
industry operations, customer management, communications, and team
building. Formal induction training is typically followed by on-the-job
training programmes in which employees are assigned specific tasks under
the supervision of trainers and managers.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Future of Training:

The use of new technologies for training delivery will increase:

 Demand for training for virtual work arrangements will rise.

 Emphasis on capture and storage and use of intellectual capital will
increase.
 Companies will rely on learning management systems and integration
with business processes.
 Technologies allow trainers to build into training many of the
desirable features of a learning environment.
 Technology will allow training to be delivered to contingent,
decentralized employees in a timely, effective manner.
 Virtual work arrangements.
 Work that is conducted in a remote location.
 Employee has limited contact wit

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

DATA COLLECTION & ANALYSIS

The data collected is through survey method. The sample selected was of 30
employees of IDBI Federal Life Insurance Company 20 employees of
LIC and remaining of BIRLA SUNLIFE as the insurance are accessible.

Q1. Are the training programs beneficial for you on the job?

No. of employees

7%

Yes
No

93%

Interpretation: As it can be seen that 93% of employees of 30 sample agree

that training programs are beneficial on job & only 7% of the sample
disagree.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q2. Was the training period long & monotonous?

No. of employees
Yes No

43%

57%

Interpretation: It can be analysed that training period is not a long and

monotonous program as they get an opportunity to learn new skills and
polish their abilities which will help them in future. Whereas 43% employees
of sample feel the training period long & monotonous.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q3. Was the training period sufficient for you to get trained?

No. of employees
Yes No

33%

67%

Interpretation: 20 of the employees are satisfied with the period for which
they were trained while remaining 10 require more period for training.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q4. Do you think this training programme are essential for insurance
company ?

No. of employees
Yes No

7%

93%

Interpretation: It is analysed that training programme are important for

banks as employees are the face of banking company.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q5. Are your learned skills useful on job?

No. of employees
Yes No

30%

70%

Interpretation: Obviously the existing and learned skills are useful on job
still 30% of employees believe that it’s not useful.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q6. Was training satisfactory for future jobs in insurance company?

No. of employees
Yes No

18%

82%

Interpretation: After carrying out survey it can be concluded that 50% of

employees are satisfied while 50% are not satisfied.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q7. How does the insurance company evaluates the effectiveness of

training programmes?

Comparing with
past performance
No. of employees
Interacting with
individual

Past
performance
evaluation Interacting
with
departmen
t heads

Interpretation: Majority of banks evaluates the performance of training

program from its past performance, 18% of banks evaluate by interacting
with them.

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 IMPACT OF TRAINING AND DEVELOPMENT OF STAFF EFFICIENCY IN INSURANCE

Q8. How training program is conducted in your insurance company?

No. of employees
Department wise Work level Both Other

10%
26%

26%

38%

Interpretation: While conducting training program banks design the

programs according to department, work level, both,etc. As per the survey
banks prefer to conduct training programme more on work level other than
department wise or other.

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Q9.Training practice in your organization is;

No.of employees
Continuous exercise Management committed Need based

28% 31%

41%

Interpretation: Some programs are continuous in nature while some are

management committed whereas some are designed on the basis of
requirement.

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FINDINGS
Insurance industry is the complex one, wherein diversified employees are
there with similar kinds of targets in sales and works in the administrative
side. The employees‟ demographic factors reveal that the age of the
employees in the sales department plays a major role. As the targets fixed in
sales, and maintaining back office work for these policies is hectic, the
employees‟ age group of 21-25 is showing improvement in their
performance.
This is gradually reduced and remains almost same till the age of 35 years.
As they gain experience after that they are showing improvement in their
performance after 40 years.

For the better performance and the consistence growth the Undergraduate
education is sufficient.
 The PG degree doesn‟t play any special role in their business.

 The performance of the Sales personnel is depending on the market

trend and the economic condition of the people for both taking
insurance policy and paying the premium. Hence the sales managers
finding it difficult to show consistent improvement in their business
though the training is being given.
 The administrative staff are showing improvement in their
performance after training.
 It is revealed from this study that the training plays a major role in the
employees‟ performance. There is consistent growth in their
performance after the training. They have shown improvement in
their performance level from 20% - 25% growth after the training.
 The employees those who are already performing 90%-100% shown
consistency in their performance level. Find out the time taken for
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achieving their target within the month period time could be the
future research scope in this study.
 The Human Resource Management (HRM) practices other than the
training followed in the organisations are very important to the
employees for enhancing their interest toward the training and the
subsequent developmental aspects.
 The performance level & the knowledge in their products, work
procedure determines the necessity of the employee training other
than the freshers. It also reveals that the periodical training
programmes are mandatory to the employees in the Private Insurance
Sector.

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SUGGESTIONS

 Employees in the organisation should be offered with the proper

training periodically to improve their performance in job.
 The training needs the employees should be properly identified
through the performance appraisal system.
 The training provided should not be restricted with the newly joined
staff, the existing staff members should also be provided with
refresher training, cross-functional training etc. it keeps them updated
with their knowledge, technology and working practices.
 The management should take all initiatives to maintain a cordial
relationship with the employees as the study reveals that the
motivation has also an impact on the employees‟productivity.
 The senior officials should understand the needs of the employees on
the training aspects and other aspects to plan for the training
programmes ensure the employees have active participation in these
programmes.
 While framing the rules and regulations of the organisations, the HRM
practices should be duly taken care with Human Resource
Management (HRM) practices hence it also has animpact on the
employee productivity.
 Recognition of the employees as and when they contributed special or
additional for the organisation is very important. This includes both
monetary and non-monetary benefits. It will make the employees more
committed towards their job, which improves their performance level.
 The effectiveness of the training should be monitored through the
observation, collecting feedback from the trainees and evaluating the
performance level after the training programmes of the employees.

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 Growth opportunities for the employees in the organisation by the

management to improve the effective & enthusiastic participation of
employees in the work and produce better result .
 Proper record of the training programmes should be
maintained.Creativity training should be introduced for the employees
as it helps them to discovertheir talents
 Proper Motivational training should be organized. Motivational
training thus forms an important aspect to enhance the performance
of the employees in the Insurance sector.
 Regular feedback should be collected from the employees about the
training programmes and a proper record should be maintained.
This is because the feedback serves as an important source to find
out what are the flaws in the current training procedures and recording
them would help to eliminate the same in the future.
 The companies should try to employ potential in-house trainers as
they understand employee needs in a much better way.

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CONCLUSIONS

Training is of great importance to the organization and as a result of this the

training should be evaluated regularly and several times during the process
as well. Effective and efficient training goals and objectives set by the
organization for the training program should be duly followed and the
organization should be able to evaluate it employees by comparing the skills
acquired from their training to their performance on the job. In this case
performance appraisal must handled effectively and comprehensively. From
the findings of the analysis, SIC has staff who have some work experience
and have also been with the company for not less than a year. Most of the
staff do not know how they are selected for the training programs they
participated in. Also staff see training programs at SIC as planned and
systematic.

Training is a tool which improves the skills sets and knowledge of the
employees that improves the productivity & profitability of the organisation.
This study on Impact of training on employee performance has been
conducted in the Private Insurance Sector, Coimbatore District with a sample
size of 75 respondents. The survey has done through the Questionnaire
Method. Data obtained were analyzed through t-test and Chi-square. Results
obtained reveal that the effective training improves the performance of
employees.
The effectiveness of the training should be improved through the proper
periodical scheduling of the training, selection of quality trainers,
implementing the best training methods etc. Training should be given to both
freshers and existing employees. Their feedback should be obtained and
evaluation of their performance after the training programme should also be
done to improve the training effectiveness. It also analyzes the employee
performance after

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the training.

Age, educational qualification and work experience are the other factors
which determine the employees‟ performance in the organisation through
the training. This study clearly indicates that the training have impact on
employee performance.

The reason for investigating the impact of employee training and

development on organizational per-formance was motivated by the
observation that some organizations do not seem to care about improv-ing
the capacity of their workers; they instead frown at and punish any
weaknesses of workers..

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