Executive summary The project deals with understanding of mutual fund and analysis, during my project, I got the opportunity to understand the concept, various AMC (Asset mgmt company) issuing various mutual fund according to the need of investor. During my project, I came to know important regulations of SEBI for mutual fund operation. Project deals with an analysis of RELIANCE MUTUAL FUND various schemes in which I tried to came out with a result which is best, for that purpose I conducted market research. During the project I suggested the investors how to invest and in which fund they should invest. During the project, I made an endeavour to understand the awareness of mutual fund among the various classes of investors. The data collected mainly through fact sheets of funds, broachers, and questionnaire and also from various site of Reliance mutual fund etc. the data analyzed and recommendation is given on the basis of conclusions.
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Transcript
Executive summary
The project deals with understanding of mutual fund and analysis, during my project, I got the
opportunity to understand the concept, various AMC (Asset mgmt company) issuing various mutual
fund according to the need of investor. During my project, I came to know important regulations of SEBI
for mutual fund operation.
Project deals with an analysis of RELIANCE MUTUAL FUND various schemes in which I tried
to came out with a result which is best, for that purpose I conducted market research. During the project
I suggested the investors how to invest and in which fund they should invest.
During the project, I made an endeavour to understand the awareness of mutual fund among
the various classes of investors. The data collected mainly through fact sheets of funds, broachers, and
questionnaire and also from various site of Reliance mutual fund etc. the data analyzed and
recommendation is given on the basis of conclusions.
INDUSTRY PROFILE
A mutual represents a vehicle for collective investment. Till 1986, the Unit Trust of India was
the only mutual fund in India. Since then public sector banks and insurance companies have been
allowed to set up subsidiaries to undertake mutual fund business. So, State Bank of India, Canara
Bank, LIC, GIC, and few other public sector banks entered the mutual fund industry.
In 1992, the mutual fund industry was opened to the private sector, and a number of private
sector mutual fund such as Birla Mutual Fund, DSP Merrill Lynch Mutual Fund, Kotak Mahindra
Mutual Fund, Morgan Stanley Mutual Fund, Tata Mutual Fund, Prudential ICICI Mutual Fund,
Reliance Mutual Fund, Standard Chartered Mutual Fund, Templeton Mutual Fund, IDBI- Principal
Mutual Fund have been set up. The process of consolidation began in recent years.
At present, there are about 30 mutual funds managing nearly 1000 schemes. While the
mutual fund industry in India has registered a healthy growth over the last 15 years, it is still very small
in relation to other intermediaries like banks and insurance companies. Mutual funds are one of the
best investments ever created because they are very cost efficient and very easy to invest in. by
pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is
diversification.
ORIGIN OF MUTUAL FUNDS
A review of the history of investment trusts, unit trusts and mutual funds indicates that the earliest
investment trust called ‘Societe General de Belgique’ was formed in Belgium in 1822. The institution
was formed by the Royal family of Holland before the separation of Belgium and Holland. The
institution acquired securities in a wide range of companies and practiced the precept of
diversification. Later, the investment trust concept attracted many countries in Europe and
considerable progress was achieved.
The concept of investment trust gained momentum in Great Britain and the first investment trust
called ‘The Foreign and Colonial Government Trust’ was founded in London in 1868. Later in 1873,
Robert Fleming at Dundee established the Scottish American Trust. During the period 1925-29, just
before the depression, substantial expansion of investment trust moment happened in US. The
banking houses promoted investment trusts to unload the un-saleable securities and to control the
companies without investing substantial amounts of their own money. Since there were very little
rules and regulations, mismanagement in these institutions was wide spread. During the great
depression on 1930s the investors had staggering losses from these trusts.
In 1933, the US Congress directed the Securities and Exchange Commission (SEC) to investigate
the operations of the American Investment Trusts. The SEC recommended the passage PF
legislation, which materialized in 1940. The Investment Companies Act of 1940 provides rules and
regulation for the establishment and management of Mutual Funds. The concept of mutual fund is
popular in the US, and they are regulated by the Investment Companies Act 1940. The act
categorizes investment companies broadly into Unit Investment Trusts and Managed Investment
Companies. Internationally, Mutual funds in the US are synonymous with unit trusts in the UK.
COMPANY PROFILE
Reliance mutual fund, a part of the Reliance- Anil Dhirubhai group (RADAG) is one of the
fastest growing mutual funds in the country. Reliance mutual fund offers investors a well rounded
portfolio of products to meet varying investor requirements. Reliance mutual fund has a presence in
95 cities across the country, an investor base of over 2.8 million and manages assets of
Rs36927crore as on December 31, 2006. Reliance mutual constantly endeavors to launch innovative
products and customer service initiatives to increase value to investors.
Reliance mutual fund schemes are managed by reliance capital asset management Ltd., a
wholly owned subsidiary of reliance capital ltd. Reliance capital is one of the India’s leading and
fastest growing private sector financial services companies, and ranks among the top 3 private sector
financial services and banking companies in terms of net worth.
Reliance capital has interests in asset management and mutual funds, life and general
insurance, private equity and investments, stock broking and other financial services. Reliance Mutual
Fund (RMF) has been established as a trust under the Indian Trusts Act, 1982 with Reliance Capital
Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the
Trustee.
RMF has been registered with the Securities & Exchange Board of India (SEBI) vide
registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund
has been changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no.
IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various
schemes under which units are issued to the Public with a view to contribute to the capital market and
to provide investors the opportunities to make investments in diversified securities.
The main objectives of the Trust are:
To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various
collective Schemes of savings and investments for people in India and abroad and also ensure
liquidity of investments for the Unit holders;
To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings
and
To take such steps as may be necessary from time to time to realize the effects without any limitation.
Statutory Details:
Sponsor: Reliance Capital Limited.
Trustee: Reliance Capital Trustee Co. Limited.
Investment Manager: Reliance Capital Asset Management Limited. The Sponsor, the Trustee and the
Investment Manager are incorporated under the Companies Act 1956.
Business overview
RCL is registered as a depository participant with national securities depository Ltd (NSDL)
and central depository services Ltd (CSDL) under the securities and exchange board of India
(Depositories and participants) regulations, 1996. RCL has sponsored the reliance mutual fund within
the frame work of the securities and exchange board of India
(Mutual fund) regulations, 1996
RCL primarily focuses on funding projects in the infrastructure sector and supports the
growth of its subsidiary companies, reliance capital trustee co. Limited, reliance capital asset
management limited, reliance general insurance company limited and reliance life insurance
Company limited. As of march 31, 2005, the company’s investment in infrastructure projects stood at
Rs.1071 crores. The investment portfolio of RCL is structured in a way that realizes the highest post-
tax return on its investments.
ORGANIZATIONAL HIERARCHY
BRANCH ORGANIZATIONAL HIERARCHY
SDM
Marketing Manager
HR Dept.
AO
AAO
HGS
Assistance
Record clerk
Sub Staffs
Finance Dept.
AO
AAO
HGS
Assistance
Record clerk
Sub Staffs
Sales Dept.
AO
AAO
HGS
Assistance
Record clerk
Sub Staffs
IT Dept.
AO
AAO
HGS
Assistance
Record clerk
Sub Staffs
Claim Dept.
AO
AAO
HGS
Assistance
Record clerk
Sub Staffs
FUNCTIONAL AREAS OF THE RELIANCE INDUSTRY LTD. MUTUAL FUND
BANGLORE
HUMAN RESOURCE MANAGEMENT
FINANCING DEPARTMENT
SALES DEPARTMENT
INFORMATION TECHNOLOGY
CLAIM DEPARTMENT
HUMAN RESOURCE DEVELOPMENT
Human Resource Development (HRD) is the frameworks for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.
Organizations have many opportunities for human resources or employee development, both within and outside of the workplace.Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.The field of HRD or Human Resource Development encompasses several aspects of enabling and empowering human resources in organization. Whereas earlier HRD was denoted as managing people in organizations with emphasis on payroll, training and other functions that were designed to keep employees happy, the current line of management thought focuses on empowering and enabling them to become employees capable of fulfilling their aspirations and actualizing their potential. This shift in the way human resources are treated has come about due to the prevailing notion that human resources are sources of competitive advantage and not merely employees fulfilling their job responsibilities. The point here is that the current paradigm in HRD treats employees as value creators and assets based on the RBV or the Resource Based View of the firm that has emerged in the SHRM (Strategic Human Resource Management) field.
The field of HRD spans several functions across the organization starting with employee recruitment and training, appraisals and payroll and extending to the recreational and motivational aspects of employee development.
Indeed, one reason for the emergence of the RBV or the SHRM paradigm is that with the advent of the service sector and the greater proportion of companies in the service sector, employees are not merely a factor of production like land, labour and capital but in fact, they are sources of competitive advantage. This is characterized by many CEO’s calling employees their chief assets and valuing their contribution accordingly. As a matter of fact, many IT and Financial Services companies routinely refer to employees as the value creators and value enhancers rather than just resources doing their job.
What this has meant is that the field of HRD has become prominent and important for organizations and has morphed into a function that takes its place among other support functions in organizations and indeed, it is the main driver of competitive advantage. Further, the field of HRD now has taken on a role that goes beyond employee satisfaction and instead, the focus now is on ensuring that employees are delighted with the working conditions and perform their jobs according to their latent potential which is brought to the fore. This has resulted in
the HRD manager and the employees of the HRD department becoming partners in the organization’s progress instead of just yet another line function. Further, the HR managers now routinely interact with the functional managers and the people managers to ensure high levels of job satisfaction and fulfilment. The category of people managers is a role that has been created in many multinational companies like Fidelity and IBM to specifically look into the personality related aspects of employees and to ensure that they bring the best to the table.
Finally, HRD is no longer just about payroll or timekeeping and leave tracking. On the other hand, directors of HRD in companies like Infosys are much sought after for their inputs into the whole range of activities spanning the function and they are expected to add value rather than just consume resources. With this introduction, we will be moving into the module covering HRD with each aspect of the HRD function and the associated topics being covered here. It is hoped that the readers would gain an overall perspective about HRD after going through the HRD module.
This module covers the HRD function in organizations from a wide variety of perspectives. At the outset, after the introduction to the module in the previous article, it is time to look at some theoretical perspectives about the HRD function. When the field of management science and organizational behaviour was in its infancy, the HRD function was envisaged as a department whose sole role was to look after payroll and wage negotiation. This was in the era of the assembly line and manufacturing where the HRD function’s purpose was to check the attendance of the employees, process their pay and benefits and act as a mediator in disputes between the management and the workers. Concomitant with the rise of the services sector and the proliferation of technology and financial services companies, the role of the HRD function changed correspondingly.
For instance, the RBV or the Resource Based View of organizations was conceptualized to place the HRD function as a department that would leverage the human resources from the perspective of them being sources of strategic advantage.
The shift in the way the human resources were viewed as yet another factor of production to being viewed as sources of competitive advantage and the chief determinant of profits was mainly due to the changing perceptions of the workforce being central to the organization’s strategy. For instance, many software and tech companies as well as other companies in the service sector routinely identify their employees as the chief assets and something that can give them competitive advantage over their rivals. Hence, the HRD function in these sectors has evolved from basic duties and is now looked upon as a critical support function.
With the advent of globalization and the opening up of the economies of several nations, there was again a shift in the way the HRD function was conceptualized. In line with the RBV and the view of the resources as being international and ethnically diverse, the HRD function was thought of to be the bridge between the different employees in multiple locations and the management. Further, the present conceptualization also means that employees have to be not only motivated but also empowered and enabled to help them actualize their potential. The point here is that no longer were employees being treated like any other asset. On the contrary, they were the centre of attraction and attention in the changed paradigm. This called for the HRD function to be envisaged as fulfilling a role
that was aimed at enabling and empowering employees instead of being just mediators and negotiators.
Finally, the theory of HRD also morphed with the times and in recent years, there has been a perceptible shift in the way the HRD function has come to encompass the gamut of activities ranging from routine tasks like hiring and training and payroll to actually being the function that plays a critical and crucial role in the employee development. The theory has also transformed the function from being bystanders to the organizational processes to one where the HRD function is the layer between the management and employees to ensure that the decisions made at the top are communicated to the employees and the feedback from the employees is likewise communicated to the top
PERSONNEL MANAGEMENT
Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization.
According to Flippo, “Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”
According to Brech, “Personnel Management is that part which is primarily concerned with human resource of organization.”
NATURE OF PERSONNEL MANAGEMENT
1. Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments.2. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern.3. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.4. Personnel management lays emphasize on action rather than making lengthy schedules, plans, and work methods. The problems and grievances of people at work can be solved more effectively through rationale personnel policies.5. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern.6. It also motivates the employees through its effective incentive plans so that the employees provide fullest co-operation.7. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as well as blue- collar workers.
ROLE OF PERSONNEL MANAGER
Personnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can be summarized as :1. Personnel manager provides assistance to top management- The top management are the people who decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the personnel manager.2. He advices the line manager as a staff specialist- Personnel manager acts like a staff advisor and assists the line managers in dealing with various personnel matters.3. As a counsellor,- As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries to solve them in best of his capacity.4. Personnel manager acts as a mediator- He is a linking pin between management and workers.5. He acts as a spokesman- Since he is in direct contact with the employees, he is required to act as representative of organization in committees appointed by government. He represents company in training programmes.
FUNCTIONS OF PERSONNEL MANAGEMENT
Following are the four functions of Personnel Management:1. Manpower Planning2. Recruitment3. Selection4. Training and Development
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:1. Analyzing the current manpower inventory2. Making future manpower forecasts3. Developing employment program4. Design training program
STEPS IN MANPOWER PLANNING
1. Analyzing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analyzed. For this the following things have to be noted-• Type of organization• Number of departments
• Number and quantity of such departments• Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting. 2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units.The Manpower forecasting techniques commonly employed by the organizations are as follows:
a. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique.
b. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure).
c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division.
d. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements.
e. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment program- Once the current inventory is compared with future forecasts, the employment program can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans.
4. Design training program - These will be based upon extent of diversification, expansion plans, development program ,etc. Training program depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.
IMPORTANCE OF MANPOWER PLANNING
1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Setting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and
employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and its related activities (Performance appraisal, training and development, remuneration)
NEED OF MANPOWER PLANNING
Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner:1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programmes are based on manpower planning.
3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training program can be chalked out to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.
6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.
TYPES OF RECRUITMENT:
1. INTERNAL RECRUITMENT - is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions and Re-employment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done.Internal sources are primarily 3 typesa. Transfersb. Promotions (through Internal Job Postings) andc. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
2. EXTERNAL RECRUITMENT - External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources of recruitment include - Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labor contractors, recommendations etc.
a. Employment at Factory Level - This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as “badli” workers.
b. Advertisement - It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange.d. Employment Agencies - There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns.
e. Educational Institutions - There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions is called as Campus Recruitment. They have special recruitment cells which help in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a particular time period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.
Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested.But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.
The Employee selection Process takes place in following order-
1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.
3. Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No
distractions should be there in room. There should be an honest communication between candidate and interviewer.5. Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.
Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training process moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature.
IMPORTANCE OF TRAINING
Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.Training is given on four basic grounds:1. New candidates who join an organization are given training. This training familiarizes them with the organizational mission, vision, rules and regulations and the working conditions.2. The existing employees are trained to refresh and enhance their knowledge.3. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing a new equipment, changes in technique of production, computer implantment. The employees are trained about use of new equipments and work methods.4. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job.The benefits of training can be summed up as:1. Improves morale of employees- Training helps the employee to get job security and job satisfaction. The more satisfied the employee is and the greater is his morale, the more he will contribute to organizational success and the lesser will be employee absenteeism and turnover.2. Less supervision- A well trained employee will be well acquainted with the job and will need less of supervision. Thus, there will be less wastage of time and efforts.3. Fewer accidents- Errors are likely to occur if the employees lack knowledge and skills required for doing a particular job. The more trained an employee is, the less are the chances of committing accidents in job and the more proficient the employee becomes.4. Chances of promotion- Employees acquire skills and efficiency during training. They become more eligible for promotion. They become an asset for the organization.5. Increased productivity- Training improves efficiency and productivity of employees. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained.
WAYS/METHODS OF TRAINING
Training is generally imparted in two ways:
On the job training- On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The in-proficient as well as semi- proficient employees can be well trained by using such training method. The employees are trained in actual working scenario. The motto of such training is “learning by doing.” Instances of such on-job training methods are job-rotation, coaching, temporary promotions, etc.
Off the job training- Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in case of new employees. Instances of off the job training methods are workshops, seminars, conferences, etc. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period. Off the job training is also called as vestibule training, i.e., the employees are trained in a separate area( may be a hall, entrance, reception area, etc. known as a vestibule) where the actual working conditions are duplicated
Training methods pertain to the types of training that can be provided to employees to sharpen their existing skills and learn new skills. The skills that they learn can be technical or soft skills and for all categories of skills, some training methods are suggested here. The training methods can range from onsite classroom based ones, training at the office during which employees might or not might check their work, experiential training methods which are conducted in resorts and other places where there is room for experiential learning. Training methods include many types of training tools and techniques and we shall discuss some of the commonly employed tools and techniques. For instance, it is common for trainers to use a variety of tools like visual and audio aids, study material, props and other enactment of scene based material and finally, the experiential tools that include sports and exercise equipment.
If we take the first aspect of the different training methods that are location based, we would infer from the explanation that these training methods include the specific location based ones and would range from classroom training done at the trainers’ location to the ones done on the office premises.
Further, the experiential training methods can include use of resorts and other nature based locations so that employees can get the experience of learning through practice or the act itself rather than through study material. It needs to be remembered that the trainings conducted in the office premises often involve employees taking breaks to check their work and hence might not be ideal from the point of view of the organizations. However, provision can be done to locate the training rooms away from the main buildings so that employees can be trained in a relaxed manner. For instance, Infosys has training centres that are exclusively built for training and these centres give the employees enough scope and time for learning new skills.
The next aspect of the training methods includes the use of visual and audio aids, study material, props and equipment. Depending on the kind of training that is being imparted, there can be a mechanism to use the appropriate tools and techniques based on the needs of the trainers and the trainees. The use of the training material often indicates the thoroughness of the training program and
the amount of work that the trainers have put in to make the training successful. Of course, if the training material is good, it also means that the employees would benefit from the scope and depth of the material though they need to invest time and energy as well.
Finally, the bottom line for any training to be successful is the synergy between the trainers and the trainees and this is where the HRD function can act as a facilitator for effective trainings and ensure that the trainers and trainees bond together and benefit in a mutual process of understanding and learning. In conclusion, there are various ways to approach trainings and some of the methods discussed above would be good starting points for follow up action and partnership between the training agencies and the organizations.
AREAS OF PROGRAMMES AT HRD CENTRE :
o NON EXECUTIVE
ENHANCNG AGENT SKILLSMUTISKILLELECTRONCS COMPUTERUNIT TRAINING
o EXECUTIVE
COMPUTER MANAGERIAL GENERAL MANAGEMENT MANAGERIAL FUNCTION
FINANCE DEPARTMENT
Finance is the life blood of business. Finance is the base of all corporate activities
in the day to day world. Management of finance is broadly concerned with the acquisition
and use of funds by a business firm.
Reliance mutual fund has a very efficient Finance Department headed by Manager
Finance. All the Finance Department staffs are professionals. Finance Department consist of
a team of professionals headed by Manager Finance, having sufficient industry experience in
the field of accounting, costing, taxation, company law and financial management
OBJECTIVES OF FINANCE DEPARTMENT
1. To manage & account for the financial resource of the organization, to forecast its
requirement in the future and plan accordingly and to check for deviation.
2. Report the financial performance of the organization, to comply with the government
rules and regulation.
FUNCTIONS OF FINANCE DEPARTMENT
The main functions of finance department are defined as follows.
1. Recording of day-to-day business transaction.
2. Receiving payments from customers and accounting these funds.
3. Preparations of sales budgets and revenue budgets and expenditure budgets on a
quarterly basis.
4. Preparations and, maintenance of costing records.
5. Preparations of fund flow and cash flow statement for every month.
6. Preparing and filling of quarterly and final income tax returns.
7. Preparations and implementation of cost reduction and cost control methods
8. Conduct and co-ordinate internal and stationary audits.
9. Perpetual stock verification and asset evaluation.
JOB DESCRIPTION OF PEOPLE IN FINANCE DEPARTMET
Responsibility of people in finance department
Establishing and controlling the financial systems and administrative services of
the organization, and providing financial information to Board of Directors.
MANAGER (FINANCE)
Main duties
Directing the establishment of financial/accounting principles, procedures and practices in
line with legal and corporate requirements.
Ensuring accurate and timely financial reports and forecasts for the whole organisation
so as to provide a clear insight into its financial condition.
Ensuring that the profits of the organisation are protected through the establishment of
effective financial controls; implementing and maintaining appropriate management
accounting and reporting systems, budgetary controls and expenditure procedures.
ADMINISTRATIVE OFFICER (FINANCE)
Main duties
Providing accurate and timely financial reports and forecasts and general accounting and
administrative services.
Ensuring effective costing and contribution analysis.
Implementing policies to ensure the security of funds and assets.
CASHIER
Main duties
Maintain an awareness of all promotions and advertisements.
Accurately and efficiently ring on registers and accurately maintain all cash and media
at the registers.
Communicate customer requests to top management.
INTERNAL AUDIT
The audit of all branch office departments of the corporation is completing every year
financial year. In keeping with practice of improving our systems and procedures through the
use of IT as a tool, audit packages are being used so that our auditors are able to carry out the
audit in a Front End Applications package environment.
INSPECTION
The inspection of all the branches of the corporation in India is completing within time
schedule. Implementation of inspection package in all our offices led to transparency by on-
line report writing, acceptance of compliance and closure process.
VIGILANCE
Special efforts were made to focus on disposal of vigilance cases pending for more than
one year. Besides expediting disposal of vigilance cases, emphasis is also laid on preventive
vigilance through the dissemination of information on areas susceptible to vigilance.
NOMINEE DIRECTORS
The corporation appoints nominee directors on the board of the companies where it has
substantial stake by way of debt or equity. Nominees are officials of the corporation who
are in service or retired. Adequate systems are in place to review and guide the nominee
directors from time to time. Nominee directors provide feedback with regard to operations
problems, prospects and corporate governance standards etc.
RISK MANAGEMENT
Corporation is the largest institutional investor in the financial market and its staggering
fund size which is placed in varying asset classes is exposed to various financial risks. To
mitigate the investment risks arising out of market risk, credit risk, interest rate risk and
other risks inherent in the financial market, a distinct full-fledged Risk management
structure has been created in the corporation.
BOARD MEETINGS
Board meetings as per regulations are generally held once in three months. In addition to
policy matters, the board provides strategic direction for execution ensures financial
discipline and accountability to the policy holders and also ensures the interest of the policy
holders and stakeholders.
SALES DEPARTMENT
Manager (Sales)
Assistance
Higher Grade Staffs
Asst. Administrative
Officers (AAO)
Administrative Officers (AO)
Record clerk
Sub Staff
SALES DEPARTMENT
Sales management is a business discipline which is focused on the practical
application of sales techniques and the management of a organizational sales operations. It is
an important business function as net sales through the sale of products and services and
resulting profit drive most commercial business. These are also typically the goals and
performance indicators of sales management.
The art of meeting the sales targets effectively through meticulous planning and
budgeting refers to sales management. Sales Management helps to extract the best out of
employees and achieve the sales goals of the organization in the most effective ways.
Process of Sales Management
1. Sales Planning
Marketers must plan things well in advance for the best results. It is essential to have
concrete plans. Mere guess works do not help in business.
Know product well. Sales professionals must know the benefits of the product for the
consumers to believe them.
Identify the target market.
Sales Planning makes the products available to the end users at the right time and at
the right place.
Sales Planning helps the marketers to analyse the customer demands and respond
efficiently to fluctuations in the market.
Devise appropriate strategies to increase the sales of the products.
2. Sales Reporting
Sales strategies are implemented in this stage.
Check the effectiveness of the various strategies. Find out whether they are bringing
the desired results or not.
Ask the sales team to submit reports of what all they have done throughout the week.
The management must sit with the sales team frequently to assess their performance
and chalk out future course of actions.
3. Sales Process
Sales process refers to various activities which help in the timely achievement of sales
targets for the successful functioning of an organization.
Sales Process includes various strategies and techniques employed by an individual to
achieve sales goals within the stipulated time frame.
MANAGER (SALES)
Sales manager is the typical title of someone whose role is sales management. The
role typically involves sales planning, human resources, talent development, leadership and
control of resources such as organizational assets.
Main duties
Manage and coordinate all marketing, advertising and promotional staff and activities
Conduct market research to determine market requirements for existing and future
products
Analysis of customer research, current market conditions and competitor information
Develop and implement marketing plans and projects for new and existing products
MARKETING ACTIVITIES IN RELIANCE MUTUAL FUND
PRODUCT DEVELOPMENT
In a competitive market, there is a greater need to provide insurance products that meet
the needs of customers RMF therefore a wide variety of products which fulfils the needs of
different segments of the society. As at the end of the financial year 2009-10, the corporation
had 54 plans available for sale.
FIELD PERSONNEL TRAINING (FPT)
The theme of FPT is professionalism. For the purpose, training in a big way is
conducting across all zones using reputed International / National Training Institutions.
BANCASSURANCE & ALTERNATE CHANNELS
Banc assurance is the term used to describe the partnership or relationship between a
bank and an insurance company whereby the insurance company uses the bank sales channel
in order to sell insurance products.
DIRECT MARKETING
This vertical is started with an objective of “creating new systems for business
generation, sales process monitoring and business processing with a view to reach out to
untapped markets and provide improved buying experience to customers.”
In a short period, the channel has expanded and professionally trained Direct Sales
Executives (DSEs) to provide financial advice to prospective customers.
The main focus of the channel was setting up systems and processes. A state of art lead
management system has been established to provide easy access to prospective customers to
reach out to LIC to buy a policy. Such leads captured through our website.
www.reliancemutualfund.com is passed on to well trained DSEs on real time basis who can
contact the customer instantly.
AGENTS
Most people have their first contact with an insurance company through an insurance
sales agent. These workers help individuals, families, and businesses select insurance policies
that provide the best protection for their lives, health, and property. Insurance sales agents
commonly referred to as “producers” in the insurance industry.
a) Agency Strength
The total number of agents on our role is 140280 as at 31.03.2011 as against 134485
as on 31.03.2012.
b) Agents’ Club Membership
In order to motivate and recognize high performers amongst agents a premium club
called the Corporate Club. The other 5 clubs which were formed to recognize agents, who
perform consistently year after year.
MEMBERS OF VARIOUS AGENTS CLUBS
Name of the Club
Corporate
Chairman
Zonal Manager
Divisional Manager
Branch Manager
Distinguished Agents
c) Career Agents Scheme
The corporation has a scheme of Urban Career Agents and Rural Career Agents
to promote the cause of professionalizing the agency force. They are given Stipends at the
start of their career to enable them to settle down in the profession.
d) Chief mutual fund Advisor Scheme
The corporation introduced the above scheme with an objective of increasing its
market presence through more agents by utilizing capabilities of existing high performing
agents for organizational growth.
e) Authorised Agents
In tune with the increasing customer expectation for more conveniences in premium
payments and servicing, the corporation has empowered select agents to collect the renewal
premium through “Premium Points”.
CLAIMS DEPARTMENT
The Claims department is headed by the claims manager
FUNCTIONS OF CLAIMS DEPARTMENT
The claims department is responsible for the claim settlements arising from the
customers. In case of a life insurance claim the department gets information directly from the
customer, the department authenticates the policy details and issues a claim number, and then
assigns the surveyor for valuation. After proper enquiry, fund is collected and delivered to the
customer.
In case of reimbursement process, the customer will have to submit documents and
they will make the payment within 3 days of completion of documentation.
Survival Benefit/Maturity Claims:
RMF settles survival benefit/maturity claims on or before the due date.
Policyholders are intimated well in advance by the Branch Office which services the
policy regarding the payment, and the necessary Discharge Voucher is also sent for
execution by the assured. In case the policyholder does not get any intimation from
the Branch Office concerned, he/she should contact them, quoting the Policy Number.
Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy
Bond and Discharge Voucher.
Death Claims:
If the life assured dies during the term of the policy, death claim arises. The death of
the policyholder should be immediately intimated in writing to the Branch Office
where the policy is serviced along with the following particulars:
1. The No./s of the policy/ies
2. The name of the policyholder
3. Death Certificate issued by concerned Authority
4. The date of death
5. The cause of death and
6. Claimant’s relationship with the deceased
On receipt of the intimation of death, necessary claim forms are sent by the Branch
Office for completion along with instructions regarding the procedure to be followed
by the claimant.
The claims which have arisen after a period of three years are treated as non-early
claims and settled within 30 days from the date of receipt of all requirements.
The claims that have arisen within a period of two years from the date of
commencement of the policy, are treated as early claims and investigation is
compulsory in such cases.
The Corporation grants claims concessions under certain Plans whereby payment of
full sum assured is made, subject to the deduction of unpaid premiums with interest
till the date of death and unpaid premiums falling due before the next anniversary of
the policy, in the event of the death of the life assured within a period of six months or
one year from the date of the first unpaid premium, provided premiums have been
paid for at least three years and five years respectively.
Claim Review Committee:
The Corporation settles a large number of Death Claims every year. Only in case of
fraudulent suppression of material information is the liability repudiated. This is to ensure
that claims are not paid to fraudulent persons at the cost of honest policyholders. The number
of Death Claims repudiated is, however, very small. Even in these cases, an opportunity is
given to the claimant to make a representation for consideration by the Review Committees
of the Zonal office and the Central Office. As a result of such review, depending on the
merits of each case, appropriate decisions are taken. The Claims Review Committees of the
Central and Zonal Offices have among their Members, a retired High Court/District Court
Judge. This has helped providing transparency and confidence in our operations and has
resulted in greater satisfaction among claimants, policyholders and public.
IT DEPARTMENT
Manager (IT)
Assistance
Higher Grade Staffs
Asst. Administrative
Officers (AAO)
Administrative Officers (AO)
Record clerk
Sub Staff
IT DEPARTMENT
RMF has been one of the pioneering organizations in India who
introduced the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in RMF. RMF
have gone in for relevant and appropriate technology over the years.
1964 saw the introduction of computers in RMF. Unit Record Machines
introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors
based computers in Branch and Divisional Offices for Back Office Computerization.
Standardization of Hardware and Software commenced in 1990’s. Standard Computer
Packages were developed and implemented for Ordinary and Salary Savings Scheme
(SSS) Policies.
FUNCTIONS OF IT DEPARTMENT
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services, LIC started
a drive of On Line Service to Policyholders and Agents through Computer. This on
line service enabled policyholders to receive immediate policy status report, prompt
acceptance of their premium and get Revival Quotation, Loan Quotation on demand.
Incorporating change of address can be done on line. Quicker completion of proposals
and dispatch of policy documents have become a reality. All our 2048 branches across
the country have been covered under front-end operations. Thus all our 100 divisional
offices have achieved the distinction of 100% branch computerization. New payment
related Modules pertaining to both ordinary & SSS policies have been added to the
Front End Package catering to Loan, Claims and Development Officers’ Appraisal.
All these modules help to reduce time-lag and ensure accuracy.
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was
commissioned in November, 1997, enabling policyholders in Mumbai to pay their
Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc.
from ANY Branch in the city. The System has been working successfully. More than
10,000 transactions are carried out over this Network on any given working day. Such
Networks have been implemented in other cities also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centres are connected through a Wide
Area Network (WAN). This will enable a customer to view his policy data and pay
premium from any branch of any MAN city. As at November 2005, we have 91
centers in India with more than 2035 branches networked under WAN.
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country.
This would enable customers to ring up RMF and receive information (e.g. next