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CHAPTER-1

INDUSTRY PROFILE

The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a

capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

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Insurance sector reforms

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N.

Malhotra was formed to evaluate the Indian insurance industry and recommend its future

direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated

in the financial sector.

The reforms were aimed at creating a more efficient and competitive financial system

suitable for the requirements of the economy keeping in mind the structural changes currently

underway and recognizing that insurance is an important part of the overall financial system

where it was necessary to address the need for similar reforms

In 1994, the committee submitted the report and some of the key recommendationsincluded:

i) Structure

Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate

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ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter

the industry.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only one State Level Life Insurance Company should be allowed to operate in each state

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent

iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There current

holdings to be brought down to this level over a period of time)

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

Computerization of operations and updating of technology to be carried out in the

Insurance industry

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The committee emphasized that in order to improve the customer services and increase the

coverage of the insurance industry should be opened up to competition. But at the same time,

the committee felt the need to exercise caution as any failure on the part of new players could

ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum

capital requirement of Rs.100 crore. The committee felt the need to provide greater autonomy

to insurance companies in order to improve their performance and enable them to act as

independent companies with economic motives. For this purpose, it had proposed setting up

an independent regulatory body.

The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in April

2000 has fastidiously stuck to its schedule of framing regulations and registering the private

sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the insurance

sector and in particular the life insurance companies was the launch of the IRDAs online

service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to sell their

products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 12 life insurance and 6 general insurance

companies have been registered

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CHAPTER-2

COMPANY PROFILE OF HDFC - STANDARD LIFE

Background and inception of the company

HDFC Standard Life Insurance Company Limited is one of India's leading private insurance

companies, which offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited (HDFC Limited),

India's leading housing finance institution and a Group Company of the Standard Life Plc,

UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius

Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by

others.

HDFC Limited

HDFC Limited, Indias premier housing finance institution has assisted more than 3.3 million

families own a home, since its inception in 1977 across 2400 cities and towns through its

network of over 250 offices. It has international offices in Dubai, London and Singapore with

service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own

a home back in India. As of December 2008, the total asset size has crossed more than Rs.

95,000 crores including the mortgage loan assets of more than Rs. 82,800 crore.

The corporation has a deposit base of Rs. 17,551 crore, earning the trust of more than 9,

00,000 depositors. Customer Service and satisfaction has been the mainstay of the

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organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition

for the service to the sector has come from several national and international entities including

the World Bank that has lauded HDFC as a model housing finance company for the

developing countries. HDFC has undertaken a lot of consultancies abroad assisting different

countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance

companies.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life Group has been looking after the financial needs of customers for over

180 years. It currently has a customer base of around 7 million people who rely on the

company for their insurance, pension, investment, banking and health-care needs. Its

investment manager currently administers 125 billion in assets. It is a leading pensions

provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as

'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension Provider'

in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and

pensions provider at the Financial Adviser Service Awards for the last 10 years running. The

'5 Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and

to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best

Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006.

Nature of the business carried

HDFE standard life is on the business of life insurance. But HDFC is in diversified business

like banking, housing finance, securities etc.

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Vision, Mission and quality policy

Vision

The most successful and admired life insurance company, which mean that we are the most

trusted company, the easiest to deal with, offer the best value for money, and set the standards

in the industry. In short, The most obvious choice for all.

Mission

We aim to be the top new life insurance company in the market. This does not just mean

being the largest or the most productive company in the market, rather it is a combination of

several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Values

Integrity

Innovation

Customer centric

People Care One for all and all for one

Team work

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Joy and Simplicity

Quality policy

Quality road map time lines

Phase-1 to phase-3 should run simultaneously

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Phases Objectives Visible proof when

Phase-5 Business excellence BE award (external)/service

guarantee

12-24 months and

Improve levels

Phase-4 Value stream map

projects

6 sigma processes, SLA,

financial benefit.

6-8 months and

improve

Phase-3

Process maturity Process complaint functions 8-12 months andsustenance

Phase-2

Organized workplaces

Zone/region/branch/locationcertification

6-10 months andsustenance

Phase-1

Current business

improvementprograms

Completion of projects and

benefits derived andsustenance

4-6 months and

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How (1) how (2) how (3) how (4)

9

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and Stake

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Optimize

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(KNOWN

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Stake holders delight

Business excellence

Product/service profile

1. Protection Plans

HDFC Term Assurance Plan: This plan is designed to help secure familys financial

needs in case of uncertainties. The plan does this by providing a lump sum to the family of

the life assured in case of death or critical illness (if option is chosen) of the life assured

during the term of the contract. One can choose the lump sum that would replace the

income lost to ones family in the unfortunate event of ones death.

HDFC Loan Cover Term Assurance Plan: This plan aims to protect family from loan

liabilities in case of unfortunate demise within the policy term. It provides the beneficiary

with a lump sum amount, which is a decreasing percentage of the initial Sum Assured.

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This means that as the outstanding loan decreases as per the loan schedule, the cover

under the policy also decreases as per the policy schedule.

HDFC Home Loan Protection Plan: This plan aims to protect family from loan

liabilities in case of unfortunate demise within the policy term. It ensures that family does

not lose the dream house that person have purchased for them, in case person is not

around to repay the outstanding monthly installments on their housing loan.

2. Children's Plans

HDFC Children's Plan: As a parent, everyone priority is their childs future and being

able to meet their childs dreams and aspirations. With HDFC Childrens Plan, they can

start building their savings today and ensure a bright future for their child.

HDFC Young Star Super: This Plan provides valuable protection to insured person

child in case his/her is not around and gives them an outstanding investment opportunity

to maximize their savings by providing them a choice of thoroughly researched and

selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

HDFC Young Star Super Suvidha: It is a convenient plan, which saves insured person

from the need of going for Medicals. This Unit Linked Plan provides valuable protection

to his/her child in case he is not around and gives him with an outstanding investment

opportunity to maximize their savings by providing them a choice of thoroughly

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researched and selected investments. This plan also gives Bumper Addition to the fund

value at Maturity.

HDFC Young Star Supreme Suvidha: This Plan provides valuable protection to insured

person child in case he is not around and gives him an outstanding investment opportunity

to maximize his savings by providing him a choice of thoroughly researched and selected

investments. This plan also gives Bumper Addition to the fund value at Maturity.

HDFC SL Young Star Champion Suvidha: This is a convenient plan, which saves him

from the need of going for Medicals. This Unit Linked Plan gives him with an outstanding

investment opportunity to maximize his savings by providing you a choice of thoroughly

researched and selected investments. This plan also gives Bumper Addition to the fund

value at Maturity.

3. Retirement Plans

HDFC Personal Pension Plan: The HDFC Personal Pension Plan is a With Profits

insurance policy that is designed to provide a post-retirement income for life with the

freedom to choose your retirement date.

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HDFC Pension Super: The HDFC Personal Pension Plan is a With Profits insurance

policy that is designed to provide a post-retirement income for life with the freedom to

choose your retirement date.

HDFC Pension Supreme: The HDFC Pension Supreme is Unit Linked plan, designed to

provide a post-retirement income for life with the freedom to choose their retirement date.

This plan gives them with an outstanding investment opportunity to maximize their

savings by providing them a choice of thoroughly researched and selected investments.

This plan also gives Bumper Addition to the fund value at vesting.

HDFC SL Pension Champion: The HDFC SL Pension Champion is Unit Linked plan,

designed to provide a post-retirement income for life with the freedom to choose their

retirement date. This plan gives them with an outstanding investment opportunity to

maximize their savings by providing them a choice of thoroughly researched and selected

investments. This plan also gives Bumper Addition to the fund value at vesting.

HDFC SL Unit Linked Pension Maximiser II: HDFC SL Unit Linked Pension

Maximiser II is a unique Single Premium unit linked plan, designed to provide a post-

retirement income for life with the freedom to maximize their investment returns. This

plan also gives Bumper Addition* of 5% of initial single premium at vesting and on death.

HDFC Immediate Annuity: The HDFC Immediate Annuity is a contract that uses

investor capital to provide them with a guaranteed gross income throughout their lifetime

or over a period of their choice. The income is guaranteed and is unaffected by the rise

and fall of interest rates. This means the investor can plan their life the way they want it to

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be, safe in the knowledge that their gross income will not fall during the period they have

selected. The HDFC Immediate Annuity offers a number of options to meet all their

income needs.

4. Savings & Investment Plans

HDFC Endowment Super: With HDFC Endowment Super, investors can start building

their savings and it ensures that their family remains financially independent, even when

they are not around. This Unit Linked Plan also gives them with an outstanding

investment opportunity to maximize their savings by providing them a choice of

thoroughly researched and selected investments.

HDFC Endowment Supreme: With HDFC Endowment Supreme, investors can start

building their savings today and it ensures that their family remains financially

independent, even when they are not around. It is a convenient plan, which saves them

from the need of going for Medicals. This Unit Linked Plan gives them with an

outstanding investment opportunity to maximize their savings by providing them a choice

of thoroughly researched and selected investments. This plan also gives Bumper Addition

to the fund value at Maturity.

HDFC SimpliLife: It is a convenient plan, which saves investors from the need of going

for Medicals. This Unit Linked Plan gives them with an outstanding investment

opportunity to maximize their savings by providing them a choice of thoroughly

researched and selected investments.

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HDFC Endowment Super Suvidha: It is a convenient plan, which saves investors from

the need of going for Medicals. This Unit Linked Plan gives them with an outstanding

investment opportunity to maximize their savings by providing you a choice of thoroughly

researched and selected investments. This plan also gives Bumper Addition to the fund

value at Maturity.

HDFC Endowment Supreme Suvidha: It is a convenient plan, which saves insured

person from the need of going for Medicals. This Unit Linked Plan gives them with an

outstanding investment opportunity to maximize their savings by providing them a choice

of thoroughly researched and selected investments. This plan also gives Bumper Addition

to the fund value at Maturity.

HDFC Wealth Builder: HDFC Wealth Builder is an exclusive plan crafted for elite

achievers. An investment cum insurance plan that will actively help in building investor

wealth and give them twin advantage of exclusive funds (actively managed ) along with

choice of limited premium payment term. This plan provides the financial protection to

their loved ones and builds up their wealth effortlessly. This plan also gives Bumper

Addition to the fund value at Maturity.

HDFC Endowment Assurance Plan: With HDFC Endowment Assurance Plan, investors

can start building their savings today and ensure that their family remains financially

independent, even when they are not around. This With Profits plan is designed to

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secure their familys future by giving their family a guaranteed lump sum on maturity or

in case of their unfortunate demise, early into the policy term.

HDFC Money Back Plan: With HDFC Money Back Plan, investors can plan now to

ensure that they have the necessary funds to have the necessary funds to secure their long-

term as well as short-term financial goals. This With Profits plan gives them a

proportion of the basis Sum Assured as Cash lump sums at regular 5-year intervals within

the policy term.

HDFC Single Premium Whole of Life Insurance Plan: HDFC Single Premium Whole

of Life Plan is a tailor made plan well suited to meet investors long-term investment needs

and help them to maintain their familys financial independence. This single premium

investment plan is a Whole of Life plan aimed at providing long-term real growth of their

money.

HDFC Assurance Plan: HDFC Assurance Plan helps investors conveniently build their

long-term savings while keeping their familys future protected. This With Profits

savings plan helps them to build their long-term savings while securing their familys

future.

HDFC Savings Assurance Plan: HDFC Savings Assurance Plan is a With Profits

savings plan which helps investors conveniently build their long-term savings and ensure

that their family is protected even if they are not around.

5. Health Plans

HDFC Critical Care Plan: HDFC Critical care plan provides for a lump sum payment

on survival post diagnosis of a critical illness, so that in the event a critical illness strikes,

investors dont have to dig into those precious savings of them.

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HDFC SurgiCare Plan: HDFC SurgiCare Plan provides investors with timely support in

case they have to undergo a major surgery and hospitalization, as the case maybe,

ensuring their financial independence at all times.

6. Rural Products

HDFC Gramin Bima Kalyan Yojana

HDFC Gramin Bima Mitra Yojana

HDFC Bima Bachat Yojana

7. Social Products

HDFC Development Insurance Plan

Area of operationHDFC STANDARD LIFE is operating internationally, that means all over INDIA and

outside India; it is rendering its insurance services including rural places.

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Ownership pattern

It is a joint venture between Housing Development Finance Corporation Limited (HDFCLimited), India's leading housing finance institution and a Group Company of the

Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and

Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint

venture, while the rest is held by others.

Associate Companies:

HDFC Limited

HDFC Bank

HDFC Mutual Fund

HDFC Sales

HDFC ERGO General Insurance

Infrastructural facilities

HDFC SL is providing good infrastructural facilities which are required for employees to

perform their work in a better way. During the year, the Company has invested in additional

infrastructure capacity and human capital, in terms of offices, technology, staff, financial

consultants, in order to be well positioned to increase the growth momentum in the year

ahead. The company stepped up the recruitment programme in the latter part of the year in

preparation for the next year.

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Awards/achievements

Received CIO 'the Ingenious 100 2009' Award

HDFC Standard Life has received the CIO The Ingenious 100 - 2009 Award, for ATLAS

(Agency Training Licensing and Servicing System). Additionally, the company has received

the CIO 100 Security Award 2009 for pioneering LANDesk Management and Security Suite

security implementation and taking its security to a higher level of technological excellence.

HDFC Standard has received the CIO 100 Award for the third consecutive year. It had

received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our

initiatives for a secure computing environment, including Sesame - Identity and Access

Management. In 2007, the company received CIO 100 award for Wonders and a Special

Award in Storage category.

CIO magazine has a long tradition of honoring leading companies for business and

technology leadership and innovations through its flagship award program CIO 100. Its a

celebration of 100 organizations (and the people within them) that are using IT in innovative

ways to deliver business value, whether by creating competitive advantage, optimizing

business processes, enabling growth or improving relationships with customers.

Received Diamond EDGE Award 2009

HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce

portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is

an initiative by the ,Network Computing magazine to identify, recognize, and honors end-user

companies in India that have demonstrated the best use of technology to solve a business

problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders.

Network Computing magazine is part of CMP Technology, which brings more than 100 IT

media brands to more than 18 million technology and business decision makers worldwide.

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Received 2008 CIO Bold 100 and CIO Security Awards

HDFC Standard Life has received the 2008 CIO Bold 100 Award. This annual award

recognizes organizations that exemplify the highest level of operational and strategic

excellence in information technology. This year's award theme, The Bold 100, recognized

those executives and organizations that embraced great risk for the sake of great reward.

HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security

Award aimed at CIOs, whose pioneering implementations have taken their enterprise security

to the next level. This award category identifies innovative and groundbreaking deployment

of technologies aimed at creating a secure business infrastructure.The company received the

2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its

initiatives for a secure computing environment, including identity management.

Received PCQuest Best IT Implementation Award 2008

HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for

Consultant Corner, the applications for its financial consultants, providing centralized control

over a vast geographical spread for key business units such as inventory, training, licensing,

etc. HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years

consequently. Last year, the company received the award for Wonders, its path-breaking

implementation of an enterprise-wide workflow system.

Silver Abby at Goafest 2008

HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing

craft category at the Goafest 2008 organized by the Advertising Agencies Association of India

(AAAI). The radio commercial Pata nahin chala touched several changes in life in the blink

of an eye through an old mans perspective. The objective was drive awareness and ask

people to invest in a pension plan to live life to the fullest even after retirement, without

compromising on ones self-respect

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Unit Linked Savings Plan Tops Mint Best TV Ads Survey

The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading

private insurance companies in India, has topped Mints Top Television Advertisement

survey conducted, for February 2008. HDFC Standard Lifes Unit Linked Savings Plan

advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall

and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim).

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007

Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the

QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro

Awards function. The award celebrates excellence in individual performance and highlights

the quality achievements of extraordinary individuals in an era of global competition and

expectations.

Sar Utha Ke Jiyo among Indias 60 Glorious Advertising Moments

HDFC Standard Lifes advertising slogan honored as one of 60 Glorious Advertising &

Marketing Moments' over the last 60 years in India, by 4Ps Business and Marketing

magazine. The magazine said that HDFC Standard Life is one of the first private insurers to

break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its

brand proposition. This was then, followed by others including ICCI Prudential, thus giving

HDFC Standard Life the credit of bringing up one such glorious advertising and marketing

moment in the last 60 years.

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Work flow model

The work will starts from the innovating of new product or policy and giving training

regarding exiting products or new products to sales development officers. They will start their

work of selling policies to the customers. Then from the premium amount company

management people take the decision to invest in different portfolios, after that when the

customers going to withdraw the money in that time after a fixed term that is minimum 3

years what will be the market return in that percentage, company will reimburse their amount

that may happen after the death of a person also.

Future growth and prospects

New Business Market Share

HDFC Standard Life growing steadily

Thus from the above diagram we can say that HDFC SL is growing steadily as it is acquiring

market share from 4.10% to 4.5% in march 2009. Through many strategies like: advertising,

good service to customers than competitors etc, it can acquire a good market share in future

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BAJAJ ALLIANZ: 8%

BIRLA SUNLIFE: 5%

REALIANCE LIFE: 6%

HDFC SL: 5%

MAX NEW YORK: 3%

SBI LIFE: 9%

OTHERS: 59%

LIC: 40%

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Thus from the above diagram we can say that HDFC SL is growing steadily as it is acquiring

market share from 4.10% to 4.5% in march 2009. Through many strategies like: advertising,

good service to customers than competitors etc, it can acquire a good market share in future

also.

CHAPTER-3

Five S Models

5- S Model is followed by HDFC STANDARD LIFE instead of 7- s Model

Introduction:

FIVE S is a basic and the simplest methodology used to establish and maintain quality

environment in organization. It is a part of a Japanese philosophy known as Kaizen; Kai in

Japanese means, to change and Zen means for better. It involves setting standards and

then continuously improving on those standards to achieve their goals.

The ultimate goal of 5s is to make the workplace more effective and efficient by its own

people in a short span of time so that efficiency of that workplace is enhanced in an

innovative and sustainable manner. Thus it requires active involvement of everyone in the

organization across the hierarchy and to come up with suggestions on regular basis.

The name stands for five Japanese words

Japanese English

S1 SEIRI SORTING

S2 SEITON SYSTEMATIC ARRANGEMENT

S3 SEISO SPIC N SPAN/SANITIZE

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S4 SEIKETSU STANDARDISE

S5 SHITSUKE SELF DISCIPLINE/SUSTENANCE

BENEFITS OF 5S:

Can be started immediately.

Reduces wastages and fatigue.

Improves the efficiency of workplace and wastages are made visible.

Improves self organization and overall self appearance of company.

Everyone can participate and does not require any quality background.

Brings in the feelings of ownership of workplace.

Thus the 5s are the pillars of visually managed workplace. This process starts with identifying

the area where 5s is to be deployed. It can be a single workstation or area as big as entire

office. Teams are nominated for carrying out the 5s and to ensure that everyone on a regular

basis practices it.

In detail:

S1 sorting:

The meaning of s1 that is sorting is to straighten and contain that is to divide the objects

into 2 groups one that is needed and other that is wanted and then remaining the unneeded

ones from the workplace.

Needed items: needed items are items that are critical in terms of existence at the

workplace and are required from process point of view.

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Wanted items: wanted items are those, which we want, but are not required from process

point of view. We can also determine the criteria to distinguish between the need and want

items.

Red Tag Square (R.T.S)

The use of a red tag square is generally during the time of a blitz, that is during the blitz the

material identified as obvious scrap and other abnormal material shall be parked in a

common place which will be known as Red Tag Square, however the items which are in

excess quantities can also be put in the R.T.S and be noted in the Red Tag Matrix.

S 2 systematic arrangements:

Place for everything and everything in place.

After the needed and wanted items are identified properly and the R.T items have been

parked at the R.T.S.

The next step is to identify the right place for all the needed /wanted items kept at workplace.

Workstation illustration:

The layout of the workplace should be prepared in such a manner so that the owners know the

exact location. Layout helps the owner to locate the workplace and assign responsibilities to

his team. Again the needed and wanted items (from need want matrix) needs to taken intoconsideration. So that place to keep them can be decided according to the frequency or usage.

Storeroom illustration:

After sorting out the needed and unneeded items and putting the unneeded items in the red tag

square, one must make the layout of the store and start specifying the areas where the things

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are supposed to be placed. It is very important to allocate right areas so that no rework needs

to be done.

S 3 : Spin N Span

Cleaning with meaning and cleaning is inspection

Sanitize means keeping things clean and in order. It is a maintenance made, which looks for

damages, defects and potential problems.

Once s1 and s2 have been done it is the responsibilities of the staff to ensure that s3 is done on

regular basis so that the items stored are properly identified.

S4 Standardize:

This step is about making standards for all the procedures and practices followed in five s.

Abnormality identification register

R.T. Matrix

Cabinet index

Master index

Store master index

S5 discipline:

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The main objective of five s is to follow and spread the learning to others. All employees need

to keep five s as an ongoing improvement plan and for that there is a fifth s that emphasizes

on sustenance. It is the culmination of s1, s2, s3, and s4, which is likely to happen over a

period of time.

MCKINSEY 7-S MODEL

The 7-s model with reference to Hdfc standard life:

The 7s model is better known as Mc-Kinsey 7s. This is because the persons who developed

this model Robert H Waterman, Jr., Thomas J. peters and Julian R Philips have been

consultants at MC-Kinsey and co. they published their 7s model in their article

STRUCTURE IS NOT ORGANISTATION(1980) and in their books THE ART OF

JAPANESE MANAGEMENT (1981) and IN SEARCH OF EXCELLENCE(1982).

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Productive organization change is not simply a matter of structure, although strategy is critical

too. Our claim is that effective organizational change is really the relationship between

structure, strategy, systems, styles, skills, staff and something we call super-ordinate goals.

Our central idea is that organization effectives, systems from the interaction of several factor-

some especially obvious and some under analyzed. Our framework for organization change

graphically depicted the figure.

STRUCTURE

In the hdfc standard life each and every department is empowered with the officer, clerk and

sub staff. The authority is delegated to officer/manager to extract work from the staff. The

each department consists of members based on its requirements.

Thus it is having an effective work on the various activities efficiently and effectively.

SKILLS

It is a more reputed insurance company, as it is providing financial solution of where to

invest, how to invest and number of products with having more benefits to investors. It has

reputed customers who are loyal to the organization. The service given to the customers areaccomplished as per their requirements. Financial services generally do mass supporting

services are rendered to all types (classes) of customers. More over the people feel their task

is in safe hands of the industry. The organization is having various capabilities over the

competitors. These skills are unique from the competitors of hdfc standard life.

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The skills are broadly categorized as follows:-

Market knowledge, analytical skills, Services, Research, Personal/administration, Soft skills,

Supporting, Medical, Finance, Information relations, others

STYLE

Hdfc standard life follows tip down/bottom up style in its management, where in each major

decision regarding the company is taken in tip down fashion and other decision like targets

and growth aspects hdfc standard life follows bottom up style.

We think it is important to distinguish between the basic personality of a top management

team and the way the team comes across to the organization. Organization may listen to what

managers say but they believe what managers do. Not words, but pattern of action is decisive.

The power of style then is essentially manageable.

One aspect of style is symbolic behavior. Typically have more people on board who

understand exploration are have headed exploration department. Typically they fund

exploration more consistently.

STRATEGY

By strategy we mean those actions that a company plans in response to or anticipation of

changes in its customers, its competitors. Strategy is the way A Company aims to improve its

position vis--vis competition perhaps through low cost production or delivery, perhaps by

providing better value to the customer, perhaps by achieving sales and service dominance. it

is, or ought to be, an organization way of saying: here is how we will create unique value.

The hdfc standard has set of objectives, strategies to achieve the objective, the course of

action to be taken to achieve the objective and guidelines for the course of action.

Hdfc standard adopts low pricing strategy to generate huge returns and good market share in

the industry, since it has well expanded its business all over INDIA.

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Hdfc standard life charges minimal to its clients for the services. It provides more benefits to

customers compared to its competitor. Hence it is known for the good pricing strategy in the

industry.

SYSTEM

The hdfc standard life has various techniques to control this procedure as system like to

improve the back office targets by giving addition support.

Information system: the implementation of computers has made information flow fast and

reliable. The information is versatile. Since hdfc standard life has good backup system.

Recruitment, training and development system

Recruitment process starts with the identification of the vacancies by the department head of

the respective department. A form requesting for the human resource is sent from the

department to HRD.

STAFF

Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard

end of the spectrum, we talk of appraisal systems, pay scales, formal training program and the

like. At the soft end, we talk about morale, attitudes, motivation and behavior.

The hdfc standard life is in the course of cutting down the cost of service. If it starts

recruiting, the selection is done based on the education qualification first class degree.

The various training program to the employees are taken like refresher course, job rotation

and job training. The promotion in the organization is taken place based upon the service,

seniority and educational qualification. The performance appraisal is also taken as a basis for

promotion so officers staff makes it.

SHARED VALUES

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Unlike the other six Ss, super ordinate goals dont seem to be present in all, or even most,

organizations. They are, however, evident in most of the superior performers.

The value shared by the members of an enterprise is known as the shared values. The

organization of HDFC STANDARD LIFE is having a strategy of sharing values.

SWOT ANALYSIS

STRENGTHS

1. HDFC Standard life insurance offers a range of individual and group insurance solutions.

2. HDFC Standard Life has the financial expertise required to manage your long-term

investments safely and efficiently.

3. Rated AAA by CRISIL and ICRA for the 10th consecutive year for High service

standards

4. Life insurance industry is a rapid growing and a nobler service industry.

WEAKNESSES

1. LIC is prevalent and sustains even today a major source of population.

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2. Low number of offices and network and number of life insurance agents.

3. Lack of knowledge and expertise.

OPPORTUNTIIES

1. Life insurance has captured its mere15 20% growth therefore a wide open untapped

market is open to the company to develop, grow and measure its success.

2. Still the numbers of companies are few and company has every capability to grow and

forward its performance areas to the widest.

THREATS

1. People are hesitant to invest and put their hard earned money to the private life insurance

company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to surmount thepeople of India despite lots of flaws and development and liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and securities

also pose problems and threats to the working of the life insurance sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are investing a bulk of their money

over to that industry.

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LEARNING EXPERIENCE

In the class just we can assume how the corporate world is but it is completely

different when I started to go to the company. In the class just we will read, learn and

same thing we will write in the exam and we will get pass but when we go for

searching job really we will feel the heat of outside world, regarding pressure for

target achievement, competition for jobs etc

That was a wonderful experience to me in that company. I learnt so many things there,

what is the real corporate culture, How much we have to be smart, How much talented

we should, How we should achieve our target, what is our responsibity.

Actually I got the work of recruitment consultant; there I need to call to the people

who want to work as financial consultant for part or full time as per their requirement,

I had to take interview to them and need to motivate them to take up that job, for that

they need to write the exam and get through with the exam. And then they need to get

the licence from IRDA to do that work.

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Limitations of the study

It was difficult to collect some information because of some company rules.

Interaction with the employees was limited because of the work schedule.

It was difficult to cover all the types of ratios because of lack of information i.e.

regarding inventories, debtors turnover etc..

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SUGGESSITIONS

a. It can try to create awareness about this company through some programmes.

b. There may be proper and immediate response in case of any queries from customers.

c. It can concentrate to increase its sales revenue as finance is life blood of any business.

d. It is able try to increase its profits through using better portfolios.

e. There can be an outstanding after sales service which is one of the important factors.

f. There may be more effective response in case of any incidents/events.

g. Feedback information can be inculcated.

h. It is able to concentrate on decreasing other expenses and it has to spend the expenses

which are really required to the development of the company.

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i. Proper management is to be there and also it should supervise the activities of the

company very well.

j. It needs to be aware of its competitors to overcome from the competition and to get more

market share.

CONCLUSION

HDFC STANDARD LIFE has been one of the best life insurance service providers in India. It

has the excellent quality service provider to their customer. The overall performance of

HDFC STANDARD LIFE is very good compared to other service providers. It got fifth

position in the insurance industry. They share a very good rapport with the customers.

The financial condition is not good from year to year. It is in loss condition from past five

years. Its debt- equity ratio is good. Because of that the company is in a good condition to get

survival in the market.

It is selling more policies from year to year that means the sales percentage is increasing from

many years it is the signal to the growth of the company. Presently it is incurring more

expenses and market share is very less compare to other competitors like LIC, ICICI

Prudential etc.

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