MANAGEMENT PROJECT

New Jubilee Life Insurance New Jubilee Life Insurance Company Limited (NJI )Company Limited (NJI )

Muhammad Usman 083248Muhammad Usman 083248Ali Adnan Khalid 073178Ali Adnan Khalid 073178

Khuram Shahzad 083268Khuram Shahzad 083268Shakeel Anjum 083277 Shakeel Anjum 083277

1.1. HistoryHistory2.2. Top Companies Awards Top Companies Awards 3.3. SWOT AnalysesSWOT Analyses4.4. BCG MatrixBCG Matrix5.5. StrategiesStrategies6.6. StructuresStructures7.7. HRM Model of NJlHRM Model of NJl8.8. ConclusionConclusion9.9. RecommendationsRecommendations10.10. SuggestionsSuggestions

Established in 1953, NJI is one of the most reputable and brightest names in the insurance sector

Sustained growth over half a century has secured NJI a place among the “Big Three” Pakistani insurance in terms of gross direct premium and financial base

NJI is listed on the Karachi & Lahore Stock Exchanges

Major shareholders include Aga Khan Fund for Economics Development and Hashoo Group

To be Pakistan’s leading and most highly To be Pakistan’s leading and most highly reputed insurance company, enjoying the reputed insurance company, enjoying the confidence and trust of its shareholders, confidence and trust of its shareholders, policyholders, business partners and policyholders, business partners and communities in which it operates. communities in which it operates.

MISSIONSHAREHOLDERSPOLICYHOLDERSEMPLOYEESCOMMUNITY

Modern Concepts of ManagementNJI is following the Taylor and mayo cycle.

According to Taylor Cycle: According to this concept the management

of NJI are focusing on more work, this is resulting them more output and more sales and more profit. They are allocating a part of this profit to satisfy their employees. They are giving a bike to that employee who made high sales and also free return tickets of Dubai.

Modern Concepts of Management

According To Fayol Cycle:NJI is following the principles of Fayol which are as follows.

Division of WorkAuthorityDisciplineUnity of CommandUnity of DirectionSubordination of Individual interest to

General InterestRemunerationEquity

Basically Pakistan belongs to people of Culture of X but I personally visited the organization and saw people working very hardly, so in my view NJI belongs to Culture Y.

Property InsuranceMarine InsuranceMotor InsuranceEngineering InsuranceBondGroup Health InsuranceMiscellaneous InsurancePersonal Line InsuranceSpecialized Insurance

New Jubilee Life Insurance Company is using following policies for the comfortness of the people.

Personal accidental planThey are using this policy for 1, 2 and 3 years.

Secure Life time plan.The duration of the Secure Life time plan is 10-20 years. The customers of NJI are much interested in this policy of company. Each of this policy has rules that how much payment is to be paid in how much how much time. These policies are very much beneficial for the customers.

POLICIESPOLICIES

Each of the above mentioned programs has its own budget according to the requirements of the program. Some programs are highly beneficial and so require lot of budget and some programs are not very much beneficial and so require small budget for their installation.

Real planLong term planShort term planSingle use planStrategic planOperational plan

Highest paid-up capital in the insurance industry.

Highest ratio of customer loyalty among all life insurance companies.

Unique designed plans for each individual customer.

Only life insurance company in Pakistan with complete range of products for corporate customers.

Backing world’s largest insurance companies.Only company providing insurance to banks in

Pakistan.

Infrastructure in Pakistan.Unaware population of Pakistan about

their security.

Political instability.Population growth in Pakistan.Awareness of people about insurance

benefits. 

Political stability.Presence of competitors like State Life

Insurance company and EFU insurance company in the market.

The Aga Khan University HospitalNew Jubilee Insurance Company (carrying

out general insurance business)The Aga Khan Health ServicesTourism Promotion Services (Chain of

Sarena Hotels)First Micro Finance Bank LimitedHabib Bank LimitedThe Aga Khan Education ServicesFocus Humanitarian Assistance

G

R

O High

W

T

H

R

A Low

T

E RELATIVE MARKET SHARE

Secure life

Plan

Education

Plan

Loan plan Pension plan

• STABILITY STRATEGYNJI is using stability strategy for secure life time plan.

• GROWTH STRATEGYNJI is using growth strategy for Education plan and Loan plan.

• RETRENCHMENT STRATEGYNJI is using retrenchment strategy for pension plan.

• COST LEADERSHIP STRATEGY:New Jubilee Life Insurance Company is providing their products which are high quality and are at low price s compare to other insurance companies.

•  DIFFERENTIATION STRATEGY:New Jubilee Life Insurance Company is working on the basis of differentiation.

• FOCUS STRATEGY:They are focusing especially on each differentiation strategy.

1. IDENTIFYING A PROBLEM2. IDENTIFYING DECISION CRITERIA3. ALLOCATION WEIGHTS TO THE CRITERIA4. DEVALOPING ALTERNATIVES5. ANALYZING ALTERNATIVES6. SELECTING AN ALTERNATIVE7. IMPLEMENTING THE ALTERNATIVE8. EVALUATING DECISION EFFETIVENESS

There are three types of decision making techniques

Decision making under Certainty.Decision making under Uncertainty.Decision making Risk.

From these techniques New Jubilee Life Insurance company is using decision making under Uncertainty and decision making under Risk.

There are four different styles of decision making which are following

 Behavioral decision making. Analytical decision making. Conceptual decision making. Directive decision making.All these styles of decision making New

Jubilee Life Insurance Company is using on the basis of requirements of decision making.

There are different structures of organizations which are following,

 Functional organizationsProcess organizations.Product organizations.Customer organizations.Geographic organizations.

The structure of New Jubilee Life Insurance organization is Customer based. They are working on the basis of customer orientation. Their work starts from customer and end at customer satisfaction.

There are different types of organizations.  Mechanistic vs Organic. Centralized vs

Decentralized. Bounded vs Boundary

less. Team vs Matrix. Branch vs Sole.

The New Jubilee Life Insurance Company is Flexible organization.

The New Jubilee Life Insurance Company is a Decentralized organization.

The New Jubilee Life Insurance Company is boundryless it is working in all over the country in different cities.

The New Jubilee Life Insurance Company is a Matrix organization because they have much assistance as compared to the team.

The organizational chart of the New Jubilee Life Insurance Company can be described as follows,

M.D G.M A.G.M R.M Z.M S.B.M B.M A.B.M T.L S.D.M D.M S.D.O D.O

HR PLANNINGDERECRUITMENTRECRUITMENTSELECTIONORIENTATIONTRAININGPERFORMANCE EVALUATIONCOMPENSATION MANAGEMENTCAREER DEVELOPMENT

FinanceFinanceHRMHRMUnderwritingUnderwriting

CLANS CONTROL: NJI has very strong control over its

employee. Now one is allowed to come late in organization.

BEUROCRATIC CONTROL:NJI strong controls over its policy. They strong formulate and implant their policy.

NJI is very strong insurance company that has recently introduced two of new insurance plans which are monthly based savings and banks insurance. This is first time in the history of Pakistan that any insurance company has introduced the insurance plans for banks. NJI employees are very hardworking, they are selected after a fifteen days testing period. They are providing better satisfaction as compared to other customers and their customers are loyal to them. NJI has very strong financial position and strong management. That is why 52% of the Pakistani organizations have insured themselves with NJI and its market share is 40%.

It should increase its plans criteria.It should introduce new and beneficiary

plans for the customers which have never been introduced in Pakistan.

It should allocate more of its profit part towards the motivation of the employees because the motivated customers will sale more.

IN this year NJI is also allocating a part of its profit towards societal marketing.

There is limited advertising in Pakistan so they should increase their advertising so that more people will get aware from NJI.

NJI has very poor infrastructure. It should increase its infrastructure.

NJI is working only in 28 cities so it should increase its branches all over the Pakistan.

It should bring its Management in each branch because they have Marketing department.