A STUDY ON

EMPLOYEE ENRICHMENT
WITH REFERENCE TO
UNITED INDIA INSURANCE CO LTD
VIZAG
A project report Submitted in Partial Fulfillment of
he Required for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
V.LAVANYA
(H.T.No.20854100055)
Under the Esteemed Guidance of
Smt.K.LALITHA BAVANI, MHRM
faculty in management studies

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

ADITYA INSTITUTE OF P.G STUDIES
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437
2008-10

ADITYA INSTITUTE OF P.G.STUDIES

DEPARTMENT OF BUSINESS
MANAGEMENT
( Affiliated to Andhra University)
Aditya Nagar, ADB Road, SURAMPALEM-533437,E.G.Dt
Phones:(08852)252243,252250,cell:9866576662
--------------------------------------------------------------------------------------------------------

CERTIFICATE

This is to certify that the project entitled EMPLOYEE ENRICHMENT with

reference to UNITED INDIA INSURANCE CO LTD. VIZAG is the bonafide work done by

V.LAVANYA with Regd.no:2085410011 during the period 2008-10 in partial fulfillment

of the requirement for the award of the Degree of MASTER OF BUSINESS
ADMINISTRATION in Aditya institute of P.G studies affiliated to Andhra University is a
record of benefited work carried out by under my guidance and supervision.

Project Guide:

Head of the

department

Smt. K.LALITHA BAVANI.

J.NAGENDRA
Faculty in management studies

MHRM

Mr.

DECLARATION
I hereby declare that this project report entitled A STUDY OF EMPLOYEE
ENRICHMENT with reference to UNITED INDIA INSURANCE CO. LTD IN
VIZAG in partial fulfillment of the requirement for the award of degree of
MASTER

OF

BUSINESS

ADMINISTRATION,

ANDHRA

UNIVERSITY,

Visakhapatanam.
I also declare that this project is a result of my own effort and that has not
been submitted to any other university or institution for any purpose not published
any time before.

Place: Surampalem.
Date:

(V. LAVANYA)

ACKNOWLEDGEMENTS
I wish to express my sincere gratitude to Mr. J. NAGENDRA KUMAR,
MBA, HOD, and Department of business studies in Aditya P.G studies, Surampalem
for his constructive co-operation and valuable guidance throughout the course and
also during the project work.
I am grateful to my project counselor Smt. K. LALITHA BHAVANI,
MHRM, lecturer, department of business studies for her valuable guidance and
suggestions to complete this project successfully.
I am grateful to Smt. B. MARY JONES (Administrative officer) for giving
me an opportunity to work on this project.
Finally I am very much grateful to my parents, friends, who supported me till
the completion of my project.

Place: Surampalem.
Date:

(V. LAVANYA)

CONTENTS
CHAPTER I
INTRODUCTION

Page No
1-7

Objectives of the study

Methodology
Limitations
CHAPTER II
INDUSTRIAL PROFILE

8-25

CHAPTER - III
COMPANY PROFILE

26-35

CHAPTER IV
THEORETICAL FRAME WORK

36-80

CHAPTER V
DATA ANALYSIS AND INTERPRETATION

81-96

CHAPTER VI
FINDINGS AND SUGGESTIONS

97-99

Findings
Suggestions
Conclusion
Appendix
Bibliography
Questionnaire

100-103

INTRODUCTION
Job design technique that is a variation on job enlargement concept. Job
enrichment adds new sources of job satisfaction by increasing the level of
responsibility of the employee. It is a vertical restructuring method in that it gives the
employee additional authority, autonomy, and control over the way the job is
accomplished. Also called job enhancement or vertical job expansion.
Job enrichment is an attempt to motivate employees by giving them the
opportunity to use the range of their abilities. It is an idea that was developed by the
American psychologist Frederick Hertzberg in the 1950s. It can be contrasted to job
enlargement which simply increases the number of tasks without changing the
challenge. As such job enrichment has been described as 'vertical loading' of a job,
while job enlargement is 'horizontal loading'. An enriched job should ideally contain:

A range of tasks and challenges of varying difficulties (Physical or Mental)

A complete unit of work - a meaningful task

Feedback, encouragement and communication

Job enrichment is an attempt to motivate employees by giving them the
opportunity to use the range of their abilities.
It is an idea that was developed by the American psychologist Frederick Hertzberg
in the 1950s.
1

It can be contrasted to job enlargement which simply increases the number of

tasks without changing the challenge. As such job enrichment has been described as
'vertical loading' of a job, while job enlargement is 'horizontal loading'. An enriched
job should ideally contain:

A range of tasks and challenges of varying difficulties (Physical or

Mental)

A complete unit of work - a meaningful task

Feedback, encouragement and communication

People have been complaining about work ever since it was invented. Today,
however, many believe that there is something different about the discontent.
Additionally in many cases, because of the shift in the balance of power, shop floor
personnel can now exercise considerable control over output. As a result
organizations are coming up with plans some pure public relations, some
innovative designed to pacify demotivated workers. The car industry in particular,
where about 25 per cent of its labour force assembles cars with robot-like monotony,
has been a pace-setter. There the term job enrichment seems still to be the most
popular phrase in use to describe industrial management techniques introduced to
counter job alienation, to make work more meaningful, to deal with blue collar
blues, to humanize work, to utilize human resources more fully, to improve
performance, and to solve problems.
The effect of job enrichment on employee responses was investigated in a field
experiment conducted in a federal agency among clerical employees, who were
randomly assigned to either an enriched or unenriched condition.

In the enriched condition, a systematic attempt was made to increase the extent to
which the jobs of the employees possessed each of the dimensions of skill variety,
task identity, task significance, autonomy, and feedback. In the unenriched condition,
the employees performed their original duties and tasks. After a 6-month experimental
period, the effect of enrichment was examined.
The results showed that:
(1) Employees in the enriched condition perceived their jobs as more enriched than
before.
(2) Enrichment caused significant increases in employee job satisfaction, job
involvement, and internal motivation;.
(3) Enrichment led to significant decreases in absenteeism and turnover.
(4) Enrichment had little impact on performance, whether assessed by superiors'
ratings or by actual output.
These findings, which are described in terms of the Hackman-Oldham theory
of job design, are regarded as suggestive evidence that enrichment can cause
substantial improvements in employee attitudes, but that these benefits may not lead to
greater productivity. It is argued that in order to explain the effect of enrichment on
performance, it is necessary to consider other factors besides the psychological states
produced by jobs which are seen to have certain characteristics.
3

OBJECTIVES OF THE STUDY

1.

To study about improving work processes and environments so they are

more satisfying for employees.

2.

To study about providing adequate resources for each employee to perform

well.

3.

To study about providing more stimulating and interesting work that adds
variety and challenge to an employees daily routine.

4.

To study about increasing the number of skill that individuals use while
performing work.

5.

To study about the control focus of job enrichment is giving people more
control over their work.

6.

To study on job enrichment whether it provides many opportunities for

peoples development.

7.

To study about feedback of employees.

METHODOLOGY
Data collection:
The data collected in two ways
1.

Primary data

2.

Secondary data

PRIMARY DATA: The research is of description type and data collected through survey, by selecting
samples.
The primary sources 70% obtained through the questionnaire that is distributed to
the employees with in the organization.
Primary data collected through observation, through direct communication with
respondents.
The primary sources 30% obtained through the personal interview by asking
questions generally in a face-to-face contact with the employees.
The sample unit in this study is the employees in the company i.e. both the
executives and the non-executives.
The sampling technique used in this study is convenient sampling method, since
the research is of exploratory nature.

SECONDARY DATA:
In the secondary data were collected some magazines and some of the
books which in one are very essential matter about Employee enrichment and analysis
of books and news papers.

LIMITATIONS
In spite of giving honest and sincere efforts they are several limitations, which are
as follows:
The period of study is only for 60 days, which is a major constraint.
The perception bias or attitude of the respondents may also act as hardly to the
study.
The sample size taken for the research is small due to the constraint of time.
Time is major constraint.
Some of the employees could not reveal much of the information for the fear
of the management.

INDUSTRY PROFILE
INSURANCE SECTOR IN INDIA:
Insurance sector in India is one of the booming sectors of the economy and is
growing at the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in
India and Insurance industry in India is governed by Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and General Insurance Business (Nationalization)
Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.
The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was conceived
as a means to provide for English Widows. In those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered
riskier for coverage. The Bombay Mutual Life Insurance Society that started its
business in 1870 was the first company to charge same premium for both Indian and
non-Indian lives. In 1912, insurance regulation formally began with the passing of
Life Insurance Companies Act and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a number of frauds
during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the
first comprehensive legislation regarding insurance was introduced with the passing
of Insurance Act of 1938 that provided strict State Control over insurance business.
8

Insurance sector in India grew at a faster pace after independence. In 1956,

Government of India brought together 245 Indian and foreign insurers and provident
societies under one nationalized monopoly corporation and formed Life Insurance
Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs.5 crore.
The (non-life) insurance business/general insurance remained with the private
sector till 1972. The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from January 1, 1973.
The 107 private insurance companies were amalgamated and grouped into four
companies: National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were subsidiaries of
the General Insurance Company (GIC).
In 1993, the first step towards insurance sector reforms was initiated with the
formation of Malhotra Committee, headed by former Finance Secretary and RBI
Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance
industry and recommend its future direction with the objective of complementing the
reforms initiated in the financial sector.

INTRODUCTION TO INSURANCE:
Insurance is a financial intermediation function by which individuals exposed
to a specified contingency each contribute to a pool from which covered events
suffered by participating individuals are paid.
9

Under this, individuals purchase the right to collect from the pool if the
insured contingency occurs. Insurance then is a contingent claim contract on the
pools assets.
Insurance is an agreement, the insurance policy or insurance contract, by
which one party, the policy owner, pays a stipulated consideration called the premium
to the other party called the Insurer, in return for which the insurer agrees to pay a
defined amount of money or provide a defined service if a covered event occurs
during the policy term. The person whose life, health, or property is the object of the
insurance policy is referred to as the insured. In most instances, the insured is also the
policy owner. Under life insurance policies, the person to whom the payment is made
on the insureds death is the beneficiary.

EVALUATION OF INSURANCE:
Humans have always sought security. This quest for security was an important
motivating force in the earliest formation of families, clans, tribes, and other groups,
indeed, groups have been the primary source of both emotional and physical security
since the beginning of humankind. They ensured a less volatile source of lifes
necessities than that which isolated humans and families could provide and helped
their less fortunate members in times of erases.
Humans today continue their quest to achieve security and reduce uncertainty.
We still rely on groups for financial stability. The group may be our employer, the
government, or an insurance company, but the concept is the same. In some ways,
however, we today are more vulnerable than our ancestors.
10

The physical and economic security formerly provided by the tribe or

extended family diminished with industrialization. Our income-dependent, wealthacquiring lifestyle renders us and our families more vulnerable to environmental and
societal changes over which we have no control. More formalized means are required
for mitigating the adverse consequences of unemployment loss of health, death, old
age, lawsuits, and destruction of our property. As extensions of human activity,
businesses are similarly vulnerable.
Humans are exposed to many serious perils, such as property losses from fire
or windstorm, and personal losses from incapacity and death. Although individuals
cannot predict or completely prevent such occurrences, they can provide for their
financial effects. This is the essence of insurance-the sharing of losses and in the
process, the substitution of a certain, small loss called the premium for an uncertain,
large loss.

TYPES OF INSURANCE:
There are two different types of insurance. They are:
1.

Social verses Private insurance.

2.

Life verses Non life insurance.

1. SOCIAL VERSES PRIVATE INSURANCE:

Governments provide some types of insurance. Thus, most countries have
extensive government-administered social security schemes that provide survivor,
retirement, disability, and unemployment benefits.
11

Health insurance and benefits for job-related accidents and illnesses or

typically provided by either government or the private sector, or some combination of
the two.
Social insurance is distinguished from private insurance through its emphasis
on social equity through income redistribution. Private insurance focuses on
individual equity means each insureds premiums reflect the expected value of his or
her losses. Also, participation in social insurance schemes is compulsory, and
financing relies on government-mandated premiums.

2. LIFE VERSES PRIVATE INSURANCE:

The private insurance sector has historically divided itself between companies
that sell insurance on the person, known as Life Insurance, and those that sell
insurance to protect property is known as Non life Insurance or property/causality
insurance, and general insurance, depending on the country.

THE NON-LIFE INSURANCE COVERS:

PROPERTY LOSSES: Damage to or destruction of homes, automobiles,
businesses, aircraft.
LIABLITY LOSSES: Payments due to professional negligence, product
defects, negligent automobile operation, or harm to others or their property.
Workers compensation and health insurance payments in some countries will
be covered by non life insurance.
12

The life insurance includes that pays benefits on a persons:

DEATH: Usually called life insurance or life assurance.
LIVING A CERTAIN LENGTH OF TIME: called endowments,
annuities, and Pensions.

INCAPACITY: called disability and long-term care insurance.

INJURY OR INCURRING A DISEASE: called health insurance,
accident insurance, and medical expense insurance.

DEFINITION OF LIFE AND HEALTH INSURANCE:

In many countries, life and health insurance comes under personal insurance
which covers life, accident, and other insurance covering a person, in contrast to
insurance covering property and liability insurance.
Life insurance usually means policies that pay on death and sometimes
policies that pay benefits on survival to a certain age or for a set number of years.
The term Health insurance referred to as policies covering the costs of injury
or sickness and sometimes also policies that pay benefits because of physical or
mental incapacity. In Europe, health insurance falls under non life insurance. In the
United States, health insurance commonly falls within life branch.

13

TYPES OF LIFE AND HEALTH INSURANCE POLICIES:

A life insurance policy that provides coverage for the whole life of the
insureds life is called Whole life insurance.
A policy that covers a set time period, such as five or ten years, is called
Term life insurance.
A policy that pays benefits if the insured dies during the policy term and also
pays benefits if the insured survives the policy term is called Endowment insurance.
A contract that promises to pay the insured, or annuitant, a periodic payment
starting at a specified age, such as 65 years is called Annuity. If payments cease on
the annuitants death, we call the contract as Life annuity.
Health insurance is a form of insurance whose payment is contingent on the
insured incurring additional expenses or losing income because of incapacity or loss
of good health. Payment provoked because physical or mental incapacity prevents the
insured from being able to work is called disability income insurance. If the
incapacity prohibits the insureds activities of daily living, it is called long-term care
insurance. If the insured incurs hospital, physician, or other health care expenses, it is
called medical expense insurance.

LIFE AND HEALTH INSURANCE CLASSIFICATION:

Much life and Health insurance is purchased as Group Insurance, typically by
employers for the benefit of their employees.
14

Industrial Insurance includes life and health insurance policies issued to

individuals in small amounts, usually less than $2,000, with premiums payable on a
weekly or monthly basis.
Ordinary insurance includes life and health insurance policies whose benefit
amounts are larger than industrial insurance, Premiums are payable monthly or less
frequently. The great majority of individually issued life and health insurance falls
within the ordinary category. Finally, some life and health insurance-referred to as
Credit insurance-is issued through lending institutions to cover debtors obligations if
they die or become disabled.
Irrespective of classification of insurance or terminology, virtually all private
life and health insurance in every market must be issued by an insurance organization,
and every insurance organization is a mechanism for pooling losses. This is true
whether a group of persons mutually insures each other-a mutual life insurer-or an
independent contractor a stock life insurer-assumes the risk and pays resulting
losses.

RISKS IN INSURANCE:
There are risks in any business. As insurance is also a business, there are risks
in insurance business also. Especially, life and health insurance faces certain
problems. Some of those problems are:

15

1. FREE RIDER PROBLEMS:

Some collectively consumed goods and services that are desired by the public
will be given at free of cost by government or by any other institution.

2. INFORMATION PROBLEMS:
A critically important assumption of the perfectly competitive model is that
both buyers and sellers are well informed. Insurance is a complex business with
neither buyers nor sellers appearing to have as much information as they need.
Information problems abound in insurance and arguably are the industrys most
important market imperfections. There are two types of information problems.
Asymmetric information problems arise when one party to a transaction has relevant
information that other party does not have. Asymmetric information problems drive
most insurer operations and also are the bane of most life and health insurance
customers, driving much of the regulation in insurance. This will also include lemons
problem, adverse selection problem, moral hazard problem, principal-agent problem
etc.
The other type of problem or risk faced by insurance is Nonexistent
information problem. In many aspects of insurance processes, neither the buyer nor
the seller has complete information because the desired information simply does not
exist. Insurance contracts promise future delivery and rely on pricing inversion that is;
the price is set before the costs of production are completely known. Insurers cannot
know the future. Similarly, individuals cannot have complete knowledge about the
consequences of their present and future choices. Both face uncertainty.
16

THE DEMAND FOR LIFE AND HEALTH INSURANCE:

THE CONCEPT OF HUMAN CAPITAL:
People are important elements of nations wealth. The essence of human
capital is that investments are made in oneself with an expectation of future benefits.
Economic research related to investment in human capital has recently gained
substantial recognition. Investment in human capital like education, for example, has
become one of the most cogent explanations for the differences in countries rates of
economic growth as well as differences in wage rates between and within countries.
Estimating the value of human capital is complicated by the necessity to
distinguish between expenditures for consumption and investment. Much of what is
called consumption constitutes investment in human capital. One method for
estimating human capital relies on its yield rather than its cost. The market place tends
to reflect investment in personal development through wages and salaries. The
resulting increase in earnings is viewed as the yield on the investment.

THE HUMAN LIFE VALUE CONCEPT:

The human life value concept is a part of the general theory of human capital.
Although this has been an area of inquiry for more than four centuries, only recently
has the interrelationship between human capital and life insurance been
acknowledged. In recent years, the valuation of a human life in connection with legal
actions seeking recovery for wrongful death has gained prominence.
17

In contrast to human capital, which is the production potential of an

individual, Human Life Value is a measure of the actual future earnings or values of
services of an individual- that is, the capitalized value of an individuals future net
earnings after subtracting self-maintenance costs such as food, clothing, and shelter.
From the standpoint of ones dependents, an individuals human life value is the
measure of the value of benefits that the dependents, can expect from their
breadwinner or supporter. Similarly, from the viewpoint of an organization, the
human life value of an employee is the value of his or her services to the firm. Thus,
under this approach, there is not necessarily one single human life value. A give
human life value is a function of its purpose and value to others.

THE PRODUCTION OF LIFE AND HEALTH INSURANCE:

Insurance supply is a function of price. The higher the unit price, the greater
will be the quantity supplied. However, the supply of insurance is not subject to direct
assessment because insurance output is not subject to precise definition or
measurement. Insurance supply is positively related to insurer risk-bearing capacity.
Risk-bearing capacity, in turn, depends on insurer capital, that is the difference
between assets and liabilities.
The production of insurance services relies on financial and human capital.
Financial capital underpins all operations. The most important operations in the
production process include insurance pricing, underwriting, and claims handing;
investment management; and distribution.

18

The life insurance business will continue to evolve. Indeed, change in

insurance is occurring at an unprecedented pace. Many of yesterdays insurance
practices differ from those of today, and many of tomorrows practices will differ
significantly from those of today. The fundamentals of risk and insurance, however,
do not change, although our understanding of them depends with time.

KEY RECOMMENDATIONS OF MALHOTRA COMMITTEE

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.

COMPETITION

Private Companies with a minimum paid up capital of Rs.1billion 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.

19

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.

REGULATORY BODY

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance should be made independent.

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.

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.

20

Malhotra Committee also proposed setting up an independent regulatory body

- The Insurance Regulatory and Development Authority (IRDA) to provide greater
autonomy to insurance companies in order to improve their performance and enable
them to act as independent companies with economic motives.
Insurance sector in India was liberalized in March 2000 with the passage of
the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with
some limits on direct foreign ownership. There is a 26 percent equity cap for foreign
partners in an insurance company. There is a proposal to increase this limit to 49
percent. The opening up of the insurance sector has led to rapid growth of the sector.
Presently, there are 16 life insurance companies and 15 non-life insurance companies
in the market. The potential for growth of insurance industry in India is immense as
nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be well below international standards.

HISTORY OF INSURANCE SECTOR

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 360degree turn witnessed over a period of almost 190 years.
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.
21

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.

SOME OF THE IMPORTANT MILESTONES IN THE GENERAL

INSURANCE BUSINESS IN INDIA ARE:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
22

1957 - General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st
January 1973.
107 insurers amalgamated and grouped into four companys viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

FUNCTIONS OF INSURANCE:
THE FUNCTIONS OF INSURANCE CAN BE BIFURCATED
INTO TWO PARTS:
1.

Primary Functions

2. Secondary Functions
3. Other Functions

23

THE PRIMARY FUNCTIONS OF INSURANCE INCLUDE THE

FOLLOWING:
PROVIDE PROTECTION - The primary function of insurance is to provide
protection against future risk, accidents and uncertainty. Insurance cannot check the
happening of the risk, but can certainly provide for the losses of risk. Insurance is
actually a protection against economic loss, by sharing the risk with others.
COLLECTIVE BEARING OF RISK - Insurance is a device to share the financial loss
of few among many others. Insurance is a mean by which few losses are shared
among larger number of people. All the insured contribute the premiums towards a
fund and out of which the persons exposed to a particular risk is paid.
ASSESSMENT OF RISK - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk. Risk is the basis for determining the
premium rate also
PROVIDE CERTAINTY - Insurance is a device, which helps to change from
uncertainty to certainty. Insurance is device whereby the uncertain risks may be made
more certain.

THE SECONDARY FUNCTIONS OF INSURANCE INCLUDE

THE FOLLOWING:
PREVENTION OF LOSSES - Insurance cautions individuals and businessmen to
adopt suitable device to prevent unfortunate consequences of risk by observing safety
instructions; installation of automatic sparkler or alarm systems, etc.
24

Prevention of losses causes lesser payment to the assured by the insurer and this will
encourage for more savings by way of premium. Reduced rate of premiums stimulate
for more business and better protection to the insured.
SMALL CAPITAL TO COVER LARGER RISKS - Insurance relieves the businessmen
from security investments, by paying small amount of premium against larger risks
and uncertainty.
CONTRIBUTES TOWARDS THE DEVELOPMENT OF LARGER INDUSTRIES Insurance provides development opportunity to those larger industries having more
risks in their setting up. Even the financial institutions may be prepared to give credit
to sick industrial units which have insured their assets including plant and machinery.

THE OTHER FUNCTIONS OF INSURANCE INCLUDE THE

FOLLOWING:
MEANS OF SAVINGS AND INVESTMENT - Insurance serves as savings and
investment, insurance is a compulsory way of savings and it restricts the unnecessary
expenses by the insured's For the purpose of availing income-tax exemptions also,
people invest in insurance.
SOURCE OF EARNING FOREIGN EXCHANGE - Insurance is an international
business. The country can earn foreign exchange by way of issue of marine insurance
policies and various other ways.
RISK FREE TRADE - Insurance promotes exports insurance, which makes the foreign
trade risk free with the help of different types of policies under marine insurance.
25

COMPANY PROFILE
UNITED INDIA INSURANCE:
ABOUT UNITED INDIA INSURANCE COMPANY LIMITED:
United India Insurance is one of the leading insurance companies in India. The
famous United India Insurance Company Limited (UIIC) is often called united India
Insurance and it is also regarded as one of the four Public Sector Insurance
Companies in India. The main corporate office of this insurance company is located at
Chennai. The workforce of United India Insurance includes some well-trained and
professional managers and engineering professionals. Besides these, the products
offered by United India Insurance are also great and profitable for all.
United India insurance company limited was incorporated as a company on
18th February 1938. General insurance business in India was nationalized in 1972. 12
Indian insurance companies, 4 co-operative insurance societies and Indian operatives
of 5 foreign insurers, besides general insurance operations of southern region of life
insurance Corporation limited. After nationalization united India has grown by leaps
and bounds and has 18300 work forces spread across 1340 offices providing
insurance cover to more than 1crore policy holders. The company has variety of
insurance products to provide insurance cover from bullock carts to satellites.
United India has been in the forefront of designing and implementing complex
covers to large customers, as in case of ONGC ltd, GMR- Hyderabad international
airport ltd, Mumbai international airport ltd.
26

Mumbai international airport ltd tirumala-tirupathi devastanam etc. we have

been also the pioneer in talking insurance to rural masses with large level
implementation of universal health insurance program of government of India and
vijaya raji janani kalyana yojana (covering 45 lakhs women in the state of Madhya
Pradesh ), tsunami Jan bema yojana ( in 4 states covering 4.59 lakhs of families),
national livestock insurance and many such schemes.
We have also made our presence in more than 200 tier II and III towns and
villages through our innovative micro offices.

HISTORY

OF

UNITED

INDIA

INSURANCE

COMPANY

LIMITED:
On 18th February, 1938, the united India Insurance Company Limited was
emerged as an insurance company and gained huge popularity in the General
Insurance business sector in India. This company has 18300 work force including
total 1340 offices across the nation providing insurance policies to the one crore
policy holders.

INTRODUCTION:

UI is a leading General Insurance Company.

More than three decades of experience in Non-life Insurance business.

Formed by the merger of 22 companies, consequent to nationalization of

General Insurance.

Head Quarters at Chennai.

27

CORPORATE MISSION:

To provide Insurance protection to all.

To ensure customer satisfaction

To function on sound business principles

To help minimize national waste and to help develop the Indian economy.

VISION:

The most preferred insurer in India, with global footprint & recognition

Trusted brand admired by all stakeholders

The best-in-class customer service provider leveraging technology & multiple

channels

The provider of a broad range of innovative products to meet the needs of all
customer segments

Great place to work with highly motivated and empowered employees

Recognized for its contribution to the society

PRODUCTS

OFFERED

BY

UNITED

INDIA

COMPANY LIMITED:

Personal policies offered by United India Insurance:

Personal Accident

INSURANCE

28

Mediclaim

Householder

Commercial policies offered by United India Insurance:

Marine Insurance: It includes Cargo and Hull insurance policies.

Fire Insurance: It includes S.F.S.P. and L.O.P. insurance policies.

Industrial Insurance: It includes I.A.R., C.P.M., B.P.P., and M.B.

Insurance policies.

Motor insurance or Vehicle Insurance: It includes Motor - A insurance

policy.

Liability Insurance: It includes Public, Product, Profession and

Workmen insurance policies.

Miscellaneous policies offered by United India Insurance:

Mediclaim

Rural

Travel

Package

Business

Social

29

MAJOR

ACHIEVEMENTS

OWNED

BY

UNITED

INDIA

INSURANCE COMPANY LIMITED:

United India Insurance Company Limited has been awarded 'iAAA' rating.
This award was given for its insurance claims paying ability by ICRA for the third
consecutive year. The full form of ICRA is Investment Information and Credit Rating
Agency.

UNITED INDIA INSURANCE CO. LTD

United India Insurance Co. Ltd is one of the most popular auto insurance
companies in India. United India Insurance Co. Ltd pays for both cars and twowheelers

and

comes

with

specialized

packages

for

each

of

them.

Automobileindia.com furnishes information on United India Insurance Co. Ltd.

Who

are

eligible

for

United

India

Insurance

Co.

Ltd:

Any one who owns a vehicle (car or two-wheeler),or financiers or lessees, who have
insurable interest in a motor vehicle, is eligible for car insurance policy under United
India Insurance Co. Ltd.

RISKS COVERED BY UNITED INDIA INSURANCE CO. LTD:

United India Insurance Co. Ltd offers cover on a number of grounds that may
include:
Damage or loss of private car by

Accidental external means

30

Burglary or theft

Terrorist activity Self ignition, fire, or lightning

Riot, strike or any form of malicious act

Natural calamities like earthquake, cyclone, flood, and inundation

Damage occurred during landslide or work slide

Damage incurred while transit by rail, road, air, elevator, lift or inland
waterways
For motorized two wheelers, United India Insurance Co. Ltd provides an

additional premium at 3% of the IDV of such accessories as, lamp, tires, mudguard or
Bonner side parts, and bumpers. However, it applies only to commercial vehicles. For
further information, you can look up automobileindia.com.

ACT LIABILITY OF UNITED INDIA INSURANCE CO. LTD:

In case of third party liability, auto insurance policy under United India
Insurance Co. Ltd includes liability to third parties with body injury or death and
property damage and also includes personal accident cover for the owner driver. In
the case of third party liability, United India Insurance Co. Ltd pays for:

The legal liability of the insured for death or disability of third party

When an insured person dies, he or she is entitled to indemnity for a liability

incurred; his or her legal representative will be indemnified in place.

31

In case of loss or damage done to third party property

Claimant's cost as decided by legal verdict

When all costs and expenses are incurred with company's full consent in
writing
Grounds for which United India Insurance Co. Ltd does not pay:

United India Insurance Co. Ltd does not pay in cases like,

Contractual liability

Consequential losses, depreciation, mechanical or electrical break down

Damage done to the vehicle under the influence of intoxicating liquor or drugs

Nuclear perils, or war perils

Claims that arise outside the geographical area specified in the policy

When the vehicle is driven by a person without valid driving license

UNITED INDIA INSURANCE

United India Insurance Company Limited is a leader in the business of
General Insurance in India. It came into being on 18 February 1938. However, the
General Insurance business was nationalized in the country in 1972, the United India
Insurance was then merged with 12 Indian Insurance Companies.
32

Insurance operations of southern region of Life Insurance Corporation of

India. The company has progressed tremendously since nationalization and today
stands as one of the most trustworthy name in the Insurance sector.

BRANCHES AND BUSINESS

The United India Insurance Company Limited is one of the biggest companies
in India with more than 20000 offices of the company spread in the length and breathe
of India. The company today, claims to cover more than 1 Crore policy holders under
its insurance policies. With an efficient workforce of over 21000, the company claims
apart from all the major cities of the country also claims its presence in more than 200
tier II and III towns and villages through their innovative Micro Offices. However, the
headquarters the company is situated in Chennai, India.
The business of the United India is very widespread. The company claims to
provide insurance cover to varied products right from insurance to bullock carts to
satellites. The net income of the company was estimated to be Rs. 520 Crore in the
year 2006. Apart from catering big brands like ONGC, GMR, Mumbai International
Airport Ltd and Tirumala-Tirupati Devasthanam, United India has also been the
pioneer of insurance in rural India.
The Tsumani Jan Bima Yojana which covered more than 4.59 lakhs of
families in the 4 Tsunami affected states of India gained a lot of appreciation
throughout the country. United India Insurance has also been awarded with 'iAAA'
rating by Investment Information and Credit Rating Agency consecutively for three
years for its strong fundamental policies and financial strength.
33

BOARD OF DIRECTORS:

Shri G.Srinivasan, Chairman cum Managing Director

Smt. Sukriti Likhi, Director, Govt of India

Shri M. S. Sundara Rajan, Chairman & Managing Director, Indian

Bank

Shri. Milind. A. Kharat, Director & General Manager, UIIC

Shri A V Ratnam, Director

Shri Abhijit Bandyopadhyay, Director

Shri.V.Harshavardhan, Director & General Manager, UIIC

34

ORGANISATIONAL STRUCTURE:

35

THEORETICAL FRAME WORK

EMPLOYEE ENRICHMENT / JOB ENRICHMENT:
Job enrichment is connected to the concept of job enlargement. Job
enrichment is the process of "improving work processes and environments so they are
more satisfying for employees" .Many jobs are monotonous and unrewarding particularly in the primary and secondary production industries. Workers can feel
dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an
over-controlled authority structure. Many jobs are monotonous and unrewarding particularly in the primary and secondary production industries. Workers can feel
dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an
over-controlled authority structure. Job enrichment tries to eliminate these problems,
and bring better performance to the workplace.

THERE ARE THREE KEY PARTS TO THE PROCESS OF JOB

ENRICHMENT :
1. Ensuring that objectives are well-defined and understood by everyone. The
overall corporate mission statement should be communicated to all.
Individual's goals should also be clear. Each employee should know
exactly how she fits into the overall process and be aware of how
important her contributions are to the organization and its customers.
2. Providing adequate resources for each employee to perform well. This
includes support functions like information technology.
36

3. Creating a supportive corporate culture. This includes peer support

networks, supportive management, and removing elements that foster
mistrust and politicking.
Provide enough freedom to facilitate job excellence. Encourage and reward
employee initiative. Flextime or compressed hours could be offered. Provide adequate
recognition, appreciation, and other motivators.

Provide skill improvement

opportunities. This could include paid education at universities or on the job training.
It may be necessary to re-engineer the job process. This could involve redesigning the
physical facility, redesign processes, change technologies, simplification of
procedures, elimination of repetitiveness, redesigning authority structures.
Clear definition of the reward is a must

Explanation of the link between

performance and reward is important. If reward is not given, explanation is needed.

Make sure the employee gets the right reward if performs well. Make sure the
employee wants the reward. How to find out? Ask them. Use surveys (checklist,
listing, questions).
Job enrichment is an attempt to motivate employees by giving them the
opportunity to use the range of their abilities. It is an idea that was developed by the
American psychologist Frederick Herzberg in the 1950s. It can be contrasted to job
enlargement which simply increases the number of tasks without changing the
challenge. As such job enrichment has been described as 'vertical loading' of a job,
while job enlargement is 'horizontal loading'.
37

AN ENRICHED JOB SHOULD IDEALLY CONTAIN:

A range of tasks and challenges of varying difficulties (Physical or Mental).
A complete unit of work - a meaningful task. Feedback, encouragement and
communication.
Job Enrichment. Increasing Job Satisfaction. Most of us want interesting,
challenging jobs where we feel that we can make a real difference to other people's
lives. As it is for us, so it is for the people who work with or for us. So why are so
many jobs so boring and monotonous? And what can you do to make the jobs you
offer more satisfying? (By reducing recruitment costs, increasing retention of
experienced staff and motivating them to perform at a high level; you can have a real
impact on the bottom line.).
One of the key factors in good job design is job enrichment, most notably
promoted by psychologist Frederick Herzberg in his 1968 article One More Time:
How Do You Motivate Employees? This is the practice of enhancing individual jobs
to make the responsibilities more rewarding and inspiring for the people who do them.
With job enrichment, you expand the task set that someone performs. You provide
more stimulating and interesting work that adds variety and challenge to an
employee's daily routine.
This increases the depth of the job and allows people to have more control
over their work. Before you look at ways to enrich the jobs in your workplace, you
need to have as your foundation a good, fair work environment. If there are
fundamental flaws in the way people are compensated, their working conditions
38

Their supervision, the expectations placed upon them, or the way they're
treated - and then those problems should be fixed first. If they are not resolved, any
other attempts to increase satisfaction are likely to be sterile. Designing Jobs that
Motivate.
There are five factors of job design that typically contribute to people's
enjoyment of a job:
1.

SKILL VARIETY: Increasing the number of skills that individuals use

while performing work.

2.

TASK IDENTITY: Enabling people to perform a job from start to finish.

3.

TASK SIGNIFICANCE: Providing work that has a direct impact on the

organization or its stakeholders.

4.

AUTONOMY: Increasing the degree of decision making, and the freedom

to choose how and when work is done.

5.

FEEDBACK: Increasing the amount of recognition for doing a job well,

and communicate the results of people's work.
Job enrichment addresses these factors by enhancing the job's core dimensions

and increasing people's sense of fulfillment.

JOB ENRICHMENT OPTIONS: The central focus of job enrichment is
giving people more control over their work (lack of control is a key cause of stress,
and therefore of unhappiness.)
39

Where possible, allow them to take on tasks that are typically done by
supervisors. This means that they have more influence over planning, executing, and
evaluating the jobs they do.
In enriched jobs, people complete activities with increased freedom,
independence, and responsibility. They also receive plenty of feedback, so that they
can assess and correct their own performance.

HERE ARE SOME STRATEGIES YOU CAN USE TO ENRICH

JOBS IN YOUR WORKPLACE:
ROTATE JOBS: Give people the opportunity to use a variety of skills, and perform
different kinds of work. The most common way to do this is through job rotation.
Move your workers through a variety of jobs that allow them to see different parts of
the organization learn different skills and acquire different experiences. This can be
very motivating, especially for people in jobs that are very repetitive or that focus on
only one or two skills.
COMBINE TASKS: Combine work activities to provide a more challenging and
complex work assignment. This can significantly increase "task identity" because
people see a job through from start to finish.
This allows workers to use a wide variety of skills, which can make the work
seem more meaningful and important. For example, you can convert an assembly line
process, in which each person does one task, into a process in which one person
assembles a whole unit.
40

You can apply this model wherever you have people or groups that typically
perform only one part of an overall process. Consider expanding their roles to give
them responsibility for the entire process, or for a bigger part of that process.
These forms of job enrichment can be tricky because they may provide
increased motivation at the expense of decreased productivity. When you have new
people performing tasks, you may have to deal with issues of training, efficiency, and
performance. You must carefully weigh the benefits against the costs.
Identify Project -Focused Work Units Break your typical functional lines and form
project-focused units. For example, rather than having all of your marketing people in
one department, with supervisors directing who works on which project, you could
split the department into specialized project units - specific storyboard creators,
copywriters, and designers could all work together for one client or one campaign.
Allowing employees to build client relations.
CREATE AUTONOMOUS WORK TEAMS This is job enrichment at the group level.
Set a goal for a team, and make team members free to determine work assignments,
schedules, rest breaks, evaluation parameters, and the like. You may even give them
influence over choosing their own team members. With this method, you'll
significantly cut back on supervisory positions, and people will gain leadership and
management skills.
IMPLEMENT PARTICIPATIVE MANAGEMENT Allow team members to
participate in decision making and get involved in strategic planning. This is an
excellent way to communicate to members of your team that their input is important.
41

It can work in any organization - from a very small company, with an owner/boss
who's used to dictating everything, to a large company with a huge hierarchy. When
people realize that what they say is valued and makes a difference, they'll likely be
motivated.
REDISTRIBUTE POWER AND AUTHORITY Redistribute control and grant more
authority to workers for making job-related decisions. As supervisors delegate more
authority and responsibility, team members' autonomy, accountability, and task
identity will increase.
INCREASE EMPLOYEE-DIRECTED FEEDBACK Make sure that people know
how well, or poorly, they're performing their jobs. The more control you can give
them for evaluating and monitoring their own performance, the more enriched their
jobs will be. Rather than have your quality control department go around and point
out mistakes, consider giving each team responsibility for their own quality control.
Workers will receive immediate feedback, and they'll learn to solve problems,
take initiative, and make decisions. Job enrichment provides many opportunities for
people's development. You'll give them lots of opportunity to participate in how their
work gets done, and they'll most-likely enjoy an increased sense of personal
responsibility for their tasks.
TIP:

Don't just accept these points wholesale. Theyll work in some situations and

not in others. Apply these ideas sensibly and in a way that is aligned with the realities
of your workplace and your organization's mission. Implementing a Job Enrichment
Program.
42

STEP ONE:

Find out where people are dissatisfied with their current work

assignments. There's little point to enriching jobs and changing the work environment
if you're enriching the wrong jobs and making the wrong changes. Like any
motivation initiative, determine what your people want before you begin.

Surveys

are a good means of doing this. Don't make the mistake of presuming that you know
what people want: Go to the source - and use that information to build your
enrichment options.
STEP TWO: Consider which job enrichment options you can provide. You don't need
to drastically redesign your entire work process. The way that you design the enriched
jobs must strike a balance between operational need and job satisfaction. If significant
changes are needed, consider establishing a "job enrichment task force" - perhaps use
a cross-section of employees, and give them responsibility for deciding which
enrichment options make the most sense.
STEP THREE: Design and communicate your program. If you're making significant
changes, let people know what you're doing and why. Work with your managers to
create an enriching work environment that includes lots of employee participation and
recognition. Remember to monitor your efforts, and regularly evaluate the
effectiveness of what youre providing.
KEY POINTS: Job enrichment is a fundamental part of attracting, motivating, and
retaining talented people, particularly where work is repetitive or boring. To do it
well, you need a great match between the way your jobs are designed and the skills
and interests of the employees working for you. When your work assignments reflect
a good level of skill variety, task identity, task significance, autonomy, and feedback
43

members of your team are likely be much more content, and much less stressed.
Enriched jobs lead to more satisfied and motivated workers. Your
responsibility is to figure out which combination of enrichment options will lead to
increased performance and productivity. Facilitating Job Enrichment & Enlargement
in Human Resources Management. Job Enrichment should be distinguished from
enlargement job enlargement attempts to make a job more varied by removing the
dullness associated with performing repetitive operations.
In job enrichment, the attempt is to build in to jobs a higher sense of challenge
and achievement. The accumulation of achievement must lead to a felling of personal
growth accompanied by a sense of responsibility. The goal of job enrichment is not
merely to make the more varied but I the words of M. Scoot Myers research for taxes
investment, which has been experimenting with the techniques is to make every
employee a manager. Thus the employee job is enriched will perform the
management function of manning and controlling so far as his work is concerned.
HOW TO ENRICH A JOB: A job may be enriched by giving it Varity, and also may
be enriched by:
1.

Given worker more latitude in deciding about such things as work method,
sequences and pace or by letting them make decisions about accepting or
rejecting materials.

2.

Giving workers a felling of personal responsibility for their tasks.

44

3.

Taking steps to make sure that people can see how their tasks contribute to a
finished products and the welfare of the enterprises.

4.

Giving people feedback on their job performance preferable before their

supervisors gets in and.

4.

Giving people feedback on their job performance preferable before their

supervisors gets in and.

5.

Involving workers in analysis and change of physical aspects of the worker

environment such as lay out of office or plant, temperature, lighting and
cleanliness.
Thus in an enriched job the employee know the overall deadlines and the

quality standard he must meet and within that frame work plans the order in which he
will take the various task and the time that should be devoted to each one. He holds
himself responsible both or meeting the deadline and for producing the work of
necessary quality, and he does not pass his work on for others to judge until he is
satisfied that it meets the standards. Or if the work is necessarily group work, the
groups plan or help to check the result.
Job Enrichment in action. A number of companies have introduced programs of job
enrichment in all these, companies claims have been made that productivity was
increased, that absenteeism and turnover reduced, and that morale improved. A study
conducted by the United States Department of Health Education and welfare
Published in 1973 reports that the primary course of dissatisfaction among workers is
the nature of their work.
45

It also reported that managerial personnel react favorably after jobs are
enriched. However after analyzing a number of studies. Fein disclosed the following:
A number of companies have introduced programs of job enrichment in all these,
companies claims have been made that productivity was increased, that absenteeism
and turnover reduced, and that morale improved.
A study conducted by the United States Department of Health Education and
welfare Published in 1973 reports that the primary course of dissatisfaction among
workers is the nature of their work. It also reported that managerial personnel react
favorably after jobs are enriched. However after analyzing a number of studies. Fein
disclosed the following:
(a)

A company which claimed great success with the experiment was taxes
instruments. But here Fein found that only 10.5% workers were actively
involved work.

(b)

Fein cautions not to be carried away by the success in top taka of primal
foods as the point has only 63 employees who were selected carefully.
And in case of AT and T benefits accrued due to simple redesigning of
job.

(c)

Fein also expressed the view that the presumption of workers demand for
job enrichment is not supported by labor leader saying that the union
member have never asked them to negotiate for it . More ever these
programs have been initiated by manager and not by managed.
46

Despite Feins analysis and criticism it is difficult to believe that people do not
want more meaningful work. This must be true of managers and professionals and
there can be some demand from workers.

LIMITATIONS:
But even the strongest supporters of job enrichment readily admit that three
are limitations in its application They can be analyzed in the following manner:
1. TECHNOLOGY: There are some jobs, which are highly technical requiring
skill it would be difficult to enrich such jobs. And with specialized
machinery and assembly line techniques it may not be possible to make
every job meaningful.
2. COST: Thought a great many companies appear to be interested in job
enrichment programs, the extra cost may seem high if a company is not
convinced that the return will at least offset the increase expenditure.
General Motors tried six man and three man teams in the assembly line but
from that they found the work shoed and cost increased. At Saab & Volvo
and motors India. It was found that increase cost is compensated by
reduced absenteeism and labor turnover. Yet the cost of the programmed is
formidable factor.
3. ATTITUDE OF MANAGERS: Another problem is the tendency of top managers
and personal specialist to apply their own scale peoples personalities. As a
result a few companies have abandoned or modified their programs.
47

M. Scott Myers believes that the failures have occurred because the
managers were not really committed to theory Y and in most cases job
enrichment is usually imposed on people. They are told about it rather than
consulted.
4. ATTITUDE OF WORKERS: The attitude of some employers also represents
obstacles. Various surveys of workers attitudes have shown that high
percentages of workers attitude have shown that high percentages of
workers are not interesting jobs. Some have complained that enriched jobs
provide too many opportunities to commit mistakes. Some workers fears
that the increased productivity sought may even mean loss of jobs.
5. REACTION OF UNION LEADERS: There has been little or no support of job
enrichment by union Leaders. If job enrichment was so important to
workers. It must have been translated in to united demand but it has never
happened. Instead Leonard woodcock the President of united Automobile
Worker has been quoted to have said about job enlargement that a lot
academic writer are writing a lot of nonsense.

HOW TO MAKE IT EFFECTIVE:

The limitations of job enrichment apply mainly to jobs requiring low level of
skills. The job of highly skilled workers professional and manager already contain
varying degrees of challenge and accomplishment.
Perhaps these could be enriched considerably more than they are by applying
modern management techniques.

48
And all level particularly in non-managerial levels several approaches could
be made to job make enrichment appeal to higher-level motivations.
1.

The people involved must have a substantial voice in the planning process. It
should not be overlooked that people like to be involved, to be involved to
be consulted and to be given an opportunity to offer suggestions. They like
to be considered as people. This would effectively result in the successful
functioning of the programmed.

2.

There is needed for better understanding of what people want. It has been
pointed out by motivation researches that this varies with people and
situations generally people with few skill want extrinsic factors such as pay,
benefits, job security, and sympathetic supervisor as then one moves up the
ladder intrinsic factors do become increasingly important.

3.

It should also result in worker enrichment if productivity increases are the

main goal of job enrichment, the programmed must show how workers
would benefit. Job enrichment, in short involves redesigning of the
immediate job, it also requires an enlargement of sense of respect by those
who manage.
In our complex personal impersonal bureaucratic organizations, this respect

for the individual can be lost all too quickly. But without this respect we can never
expect to make full use of our human resources. Job enrichment is a way to motivate
employees by giving them increased responsibility and variety in their jobs. Many
employers traditionally believed that money was the only true motivating factor.

49
If you wanted to get more work out of employees, offering them more money
was the only way to do it.
While that may be true for a small group of people, the majority of workers
today like to work and to be appreciated for the work they do. Job enrichment
allowing the employees to have more control in planning their work and deciding how
the work should be accomplishedis one way to tap into the natural desire most
employees have to do a good job, to be appreciated for their contributions to the
company, and to feel more a part of the company team.
Job enrichment is a way to motivate employees by giving them increased
responsibility and variety in their jobs. Many employers traditionally believed that
money was the only true motivating factor for employees and that if you wanted to
get more work out of employees, offering them more money was the only way to do
it. While that may be true for a small group of people, the majority of workers today
like to work and to be appreciated for the work they do. Job enrichment allowing
the employees to have more control in planning their work and deciding how the work
should be accomplishedis one way to tap into the natural desire most employees
have to do a good job, to be appreciated for their contributions to the company, and to
feel more a part of the company team.
Job enrichment has its roots in Frederick Herzberg's two-factor theory,
according to which two separate dimensions contribute to an employee's behavior at
work. The first dimension, known as hygiene factors, involves the presence or
absence of job dissatisfactory, such as wages, working environment.

50
When these factors are poor, work is dissatisfying and employees are not
motivated. However, having positive hygiene factors does not cause employees to be
motivated; it simply keeps them from being dissatisfied.
The second dimension of Herzberg's theory refers to motivators, which are
factors that satisfy higher-level needs such as recognition for doing a good job,
achievement, and the opportunity for growth and responsibility. These motivators are
what actually increase job satisfaction and performance. Job enrichment becomes an
important strategy at this point because enriching employees' jobs can help meet some
of their motivational needs.
There are basically five areas that are believed to affect an individual
employee's motivation and job performance: skill variety, task identity, task
significance, autonomy, and feedback. Job enrichment seeks to find positive ways to
address each of these areas and therefore improve employee motivation and personal
satisfaction. Skill variety involves the number of different types of skills that are used
to do a job. This area is important because using only one skill to do the same task
repeatedly can be quite boring, typically causing the employee's productivity to
decrease after a period of time.
However, using a variety One way businesses are focusing on this area is
through job rotation, that is, moving employees from job to job within the company,
thereby allowing employees a variety of tasks in their work and helping prevent
boredom. While this process can be costly to the company because employees must
be trained in several different areas.

51
how the different jobs of a company fit together and gives the company more
flexibility in covering tasks when workers are absent.
However, while job rotation is a good way to enrich employees' jobs, it can
also hinder performance: Having to know several different jobs in order to rotate, can
prevent employees from becoming proficient at any of the jobs. Therefore, the
advantages and disadvantages of job rotation as an enrichment strategy have to be
carefully weighed. skills in a job will tend to keep the employee more interested in the
job and more motivated. Task identity is a matter of realizing a visible outcome from
performing a task.
Being able to see the end result of the work they do is an important motivator
for employees. One way to make task identity clearer is through job enlargement,
which means adding more tasks and responsibilities to an existing job. For example,
instead of building just one component part of a humidifier, a team of employees
builds the entire product from start to finish. When using job enlargement as an
enrichment strategy, it is important that enlarging the job gives the employee more
responsibility and more variety, not just more work. Task significance involves how
important the task is to others in the company, which is important in showing
employees how the work they do fits in with that done in the rest of the organization.
If employees can see how their work affects others, it will be a motivator to do the
best job they can. Many companies take new employees on a tour of the company and
provide training sessions on how each part of the company works together with the
other parts. In order to accept and handle responsibility, it is important that employees
know how the various areas of the company work together.

52
Without this knowledge, it is very difficult for them to handle decisionmaking responsibilities. Putting employees from different areas of the company into
planning teams can also help them see the significance of the tasks they perform.
Autonomy involves the degree of freedom, independence, and decisionmaking ability the employee has in completing assigned tasks. Most people like to be
given responsibility; it demonstrates trust and helps motivate employees to live up to
that trust. Responsibility can also help speed up work processes by enabling the
employee to make decisions without having to wait for management approval.
Autonomy is a very important part of job enrichment because it gives the employee
power and a feeling of importance. A type of job enrichment that restructures work to
best match the employee to the job is job redesign. Job redesign can focus on
combining existing jobs, forming work groups, and/or allowing closer contact
between employees and individual suppliers or customers. The idea behind job
redesign is to match employees with a job they like and are best qualified to perform.
Self-managed teams are a type of job design whereby employees are grouped into
teams and given certain guidelines to follow as well as goals to accomplish and then
left alone to accomplish those goals. Self-managed teams demonstrate the company's
faith in the employees and give employees a feeling of power and pride in the work
they accomplish.
Feedback describes how much and what type of information about job
performance is received by the employee. It is one of the most important areas for
motivation. Without feedback, employees have no way of knowing whether they are
doing things correctly or incorrectly.

53
Positive feedback helps to motivate employees by recognizing the efforts they
have put into their work. While monetary rewards for doing a good job can be a
strong incentive, sometimes saying "you did a really good job on that project" can
mean just as much. Corrective feedback is also important because it lets employees
know what areas need improvement.
There are many different types of job-enrichment activities and programs that
companies can implement to encourage worker participation and enhance motivation.
The team atmosphere is one way to enrich jobs. Grouping employees into teams and
allowing the team the freedom to plan, make decisions, and accomplish their goals
gives employees a feeling of importance and responsibility.
It can also help employees come up with creative ideas on ways to improve
work activities by giving them the opportunity to work closely with others. Asking for
and encouraging employees to give input on company strategies and plans are another
way to enrich jobs. Often times employees have the best input because they are the
ones actually performing the activity on a daily basis. Holding company award
ceremonies can also help to enrich jobs and motivate employees by recognizing
individual employees for their contributions to the company.
The purpose of job enrichment is to improve the quality of an employee's job
and therefore motivate the employee to accomplish more. However, in order for job
enrichment to work, the employee has to desire and accept new ways of
accomplishing tasks. Some employees lack the skills and knowledge required to
perform enriched jobs.

54
While others are quite happy doing routine jobs because they feel the current
work situation is relatively stress-free. It is likely that these types of employees would
not like job-enrichment activities and would not accept the new way of doing things.
Therefore, asking for employee input and keeping communication lines open
is essential to the success of job-enrichment programs. "You know that retaining
experienced employees is a key factor in our continued success, yet I see us losing
more and more of our long-standing account managers. Our survey shows they are
bored with their jobs. I want a quick motivational training program for all employees
starting in a week. Let's make sure this doesn't continue to happen!" "We want to
make sure we hang on to our top performing service representatives. I want you to put
together an hour presentation showing them the options for advancement in our
company.
We can't afford to lose these people to the competition." As with so many
similar requests, analysis will most likely show that a training solution would not be
very effective for either of the above scenarios. If the root causes of the scenarios are
truly related to boredom and lack of preparation for advancement, job enrichment
could be an excellent non-training intervention. Job enrichment is a type of job
redesign intended to reverse the effects of tasks that are repetitive requiring little
autonomy. Some of these effects are boredom, lack of flexibility, and employee
dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope
of the job with a greater variety of tasks, vertical in nature, that require selfsufficiency.
55

Since the goal is to give the individual exposure to tasks normally reserved for
differently focused or higher positions, merely adding more of the same
responsibilities related to an employee's current position is not considered job
enrichment. The basis for job enrichment practices is the work done by Frederick
Herzberg in the 1950's and 60's, which was further refined in 1975 by Hackman and
Oldham using what they called the Job Characteristics Model. This model assumes
that if five core job characteristics are present, three psychological states critical to
motivation are produced, resulting in positive outcomes Job enrichment can only be
truly successful if planning includes support for all phases of the initiative. Ohio State
University Extension began a job enrichment program in 1992 and surveyed the
participants five years later. The results, broken down into 3 sub-buckets of data
beyond the main grouping of advantages/disadvantages as shown in Table 1, indicate
the University had not fully considered the planning and administrative aspects of the
program (Fourman and Jones, 1997). While the benefits are seemingly obvious,
programs fail not because of a lack of benefits, but rather due to implementation
problems. These problems can include a perception of too great a cost, lack of longterm commitment of resources, and potential job classification changes (Cunningham
and Eberle, 1990). In order for a job enrichment program to produce positive results,
worker needs and organizational needs must be analyzed and acted upon.
According to Cunningham and Eberle (1990), before an enrichment program
is begun, the following questions should be asked:

56

1. Do employees need jobs that involve responsibility, variety, feedback,

challenge, accountability, significance, and opportunities to learn?
2. What techniques can be implemented without changing the job
classification plan?
3. What techniques would require changes in the job classification plan?
When asked about the successes of a Training Generalist job enrichment
program begun in 2002, Karen Keenan, Learning Manager with Bank of America,
stated the accomplishments were, "greater than expected". The Training Generalist
program has resulted in three successful participants to date. According to Ms.
Keenan, positive results can be directly tied to a program that addressed the strategic
goal of greater resource flexibility without adding to staff, as well as to proper
planning, guidance, and feedback for the participants.
Having a voluntary program contributed as well, attracting a high caliber of
individuals eager to expand their skills and be positioned for advancement. To date,
all three Training Generalists have experienced promotions and additional recognition
while affording Ms. Keenan's team financial results and workload flexibility it could
not have otherwise achieved. A job enrichment program can be a very effective
intervention in some situations where a Performance Technician is faced with a
request for motivational training.

57

TECHNIQUES:Job enrichment, as a managerial activity includes a three steps technique:

1.

Turn employees' effort into performance:

2.

Link employees performance directly to reward:

1. TURN EMPLOYEES' EFFORT INTO PERFORMANCE:

Ensuring that objectives are well-defined and understood by everyone. The
overall corporate mission statement should be communicated to all. Individual's goals
should also be clear. Each employee should know exactly how he/she fits into the
overall process and be aware of how important their contributions are to the
organization and its customers. Providing adequate resources for each employee to
perform well. This includes support functions like information technology,
communication technology, and personnel training and development.
Creating a supportive corporate culture. This includes peer support networks,
supportive management, and removing elements that foster mistrust and politicking.
Free flow of information. Eliminate secrecy. Provide enough freedom to facilitate job
excellence. Encourage and reward employee initiative. Flextime or compressed hours
could be offered. Provide adequate recognition, appreciation, and other motivators.
Provide skill improvement opportunities.

58

This could include paid education at universities or on the job training.

Provide job variety. This can be done by job sharing or job rotation programmes. It
may be necessary to re-engineer the job process. This could involve redesigning the
physical facility, redesign processes, change technologies, simplification of
procedures, elimination of repetitiveness, redesigning authority structures.

2. LINK EMPLOYEES PERFORMANCE DIRECTLY TO REWARD:

Clear definition of the reward is a must. Explanation of the link between
performance and reward is important. Make sure the employee gets the right reward if
performs well. If reward is not given, explanation is needed.

MEANING OF HUMAN RESOURCE MANAGEMENT:Different terms are used denote human resources management. They are
labour management, labour administration, labour management relations, employeeemployer

relations,

industrial

relations,

personnel

administration,

personal

management, human capital management, HRM and the like. Though these terms can
be differentiated widely, the basic nature of distinction lies in the scope of a coverage
and evolutionary stage. In simple sense, HRM means employing people, developing
their resources, utilizing, maintains and compensating their services in tune with the
job and organization requirements.

59

DEFINITION:According to flippo, It is the planning, organizing, directing, controlling of

the procurement, development, compensation, integration and maintenance and
separation of human resources to the end that individual organizational and social
objectives are accomplished.
Human resources management means employing people, developing their
resources, utilizing, maintaining and compensating their services in tune with the job
and organizational requirements.
Personnel management as defined by the institute of personnel management
in the U.K
Personnel management is a responsibility of all those who manage people as
well as being a description of the work of those who are employed as specialists. It is
that part of management which is concern with people at work and with their
relationships with in an enterprise. It applies not only to industry and commerce but to
all felids of employment.
Personnel management is a part of management. This part is concerned with
the people and their relationship within an organization.
HRM is concerned with employees both as individuals and as a group in
attaining goals. It is also concerned with behavior, emotional and social aspects of
personnel. It is concerned with the development of human resources that is
knowledge, capability, skill, potentialities and attaining and achieving employee
goals, including job satisfaction. HRM covers all levels categories of employees. It

covers both organized and unorganized employees. It applies to the employees in all
types of organizations in the world. Thus, it is common in all types of organizations.
Human resources management is a continues and never ending process. It
aims at attaining the goals of the organization, individual and society in an integrated
approach. Organization goals my include survival, growth and development in
addition to profitability, productivity, innovation etc. Individual employee-goals
consists of job satisfaction, job security, high salary, attractive fringe benefits. HRM
is a responsibility of all line managers and a function of staff managers in an
organization. It is concerned mostly with managing human resources at work.
HRM is central sub-system of an organization and it permeates all types of
functional management, viz., production management, marketing management and
financial management. Human resource management aims at securing unreserved cooperation from all employees in order to attain predetermined goals.

NATURE AND SCOPE OF HUMAN RESOURCES:People in any organization manifest themselves, not only through individual
sections but also through group interactions. When individuals come to work place,
they come with not only technical skills, knowledge etc. but also with their personal
feelings, perception, desires, motives etc. Therefore, employee management in an
organization does not mean management of only technical skills but also other factors
of the human resources. HRM treats complete human being i.e., economic, social,
psychological and spiritual.

60

COMPLEX DYNAMISM:A close observation of employees reveals that they are complex beings, i.e.,
physiological, psychological, sociological and ethical beings. The proportions or
intensities of these dimensions of the human factor in employment may differ from
one situation to another but the fact remains that these are the basic things of the
human factor organizations.

A SOCIAL SYSTEM:HRA is relatively new and developed as a part of management. Personnel

Managements is the task of dealing with human relationships, moulding and
developing the human behavior and attitude towards the job and organizational
requirements. The HR manager involves him/her in administering a social system.

A CHALLENGING TASK:HR managers play a crucial role in understanding the changing needs of the
organization and the society. In additional to this the growing strength of trade unions,
educational standards etc., further complicate the role of personnel managers. Hence
the modern personnel managers should equip themself with good knowledge of
disciplines.

FEATURES OF HUMAN RESOURCE MANAGEMENT:On the basis of definition of HRM, we can identify its features relevant to
understand its exact nature and scope which are as follows:
61

1. A PART OF MANAGEMENT DISCIPLINE:HRM is a part of management discipline. It is not discipline in itself but is
only field of study. A discipline is and accepted science with a theoretical foundation
that serves as a basis for research and analysis.

2. AS A CONTINUOUS PROCESS:A process is a continues phenomenon in which events and relationship are
seen as dynamic and flexible. HRM is a continues process and not a one stop action.
Therefore, it has to be performed on continues basis.

3. CONCERNED WITH PEOPLE:HRM is concerned with people in the organization both present and potential.
It is not merely concerned with the people presently available in the organization but
with the people having potential to be brought in the organization.

4. DIRECTED TOWARDS ACHIVEMENT OF OBJECTIVES:HRM is directed towards achievement of organizational objectives by

providing tools and techniques of managing people in the organization effectively.
The achievement of organizational objectives depends largely on the quality of its
people and the way this quality is utilized in getting the things done.

62

5. UNIVERSAL EXISTENCE:HRM is not confined merely to business organizations but is relevant to all
organized activities. Further, it is relevant all functional areas of a business
organizations. Every member of the management group, from top to bottom, must be
an effective human resource manager because he depends on the cooperative efforts
of others.

SIGNIFICANCE OF HRM:Human resources play a crucial role in the development process of modern
economics. Arthur lewis observed there are great difference in development between
countries which seem to have roughly equal resources, so it is necessary to enquire
into the difference in human behaviour.

1. HUMAN RESOURCES IN THE NATIONS WELL-BEING:A nation with abundance of physical resource will not benefit itself unless
human resources make use of them. In fact human resources are safely responsible for
making use of national resources and for the transformation of traditional economies
into the modern and industrial economies. Lack of organization of human resources is
largely responsible for the backwardness of the nation. Countries are developed
because their people are underdeveloped. In essence, the difference in the level of
economic development of the countries is largely a reflection of the differences in
quality of their human resources ..
63

2. HUMAN AND GENERAL MANAGEMENT:Management of an organization in modern economies is not only complex and
sophisticated but it is also vital, and influences the economic growth of a country. Its
efficiency determines the property and well-being of the people of the nation.
Perhaps today there is no other latest activity which is as important and dynamic as
management the oldest of arts and newest of profession.
Successful management depends not safely, but significantly upon the ability
to predict and control human behaviour. Among other things, if a company is
economically successful, it means, the management has been able to manage human
resources are effectively. The human resources are The active force of
industrialization, and strategies for development

should concentrate particularly on

their enhancement.

3. HUMAN RESOURCES SYSTEM IS A CENTRAL SUBSYSTEM:Human resources system in an organization is not only a unique subsystem but
a principal and central sub-system and it operates upon and controls all other subsystem. Thus, in the words of Wendell L. French, Personnel management is a major
pervasive sub-system of all organizations.
Peter F. drucker has rightly observed the significance of personnel as, mangers
are fond of repeating the truism that the only real difference between one organization
and the other is the performance of people.
64

4. HUMAN RESOURCE ACCOUNTING:One important development arising out of the recognition of crucial
importance of personnel in organizations is the Human Resource Accounting. The
potential and promise of human resources accounting have been thus recognized by
the accountants.
Eric Flanholtz defines human resources accounting as, accounting for people
as organizational resources. Human resources accounting is the measurement of the
cost and value of people for organization.

5. HUMAN RESOURCE AND MARKET ECONOMY:The three important areas of human resources are skill, ability and knowledge.
Knowledge plays most vital role in the modern industry as rail rood played.
Knowledge is the only meaningful resources today. All other resources flow freely
borders.

6. MARKETING AND HUMAN RESOURCES:Companies are forced to improve the quality of products, quality of pre-sales
and posts-sales service, customersproducers interface and the like. It is the rising
demand from customers that is making people increasingly important.

65

FUNCTIONS OF HRM:1.

PLANNING: - It is a pre-determined course of action. Planning is

determination of personnel programmes and changes in advance that will
contribute to the organization goals. It also involves forecasting of
personnel needs, changing values, attitudes and behaviour of employees
and their impact on organization.

2.

ORGANISING: - An organization is a Structure and a process by which

co-operative group of human beings allocates its tasks among its members,
identifies relationships and integrates its activities towards

common

objective. Thus organization establishes relationships among the

employees so that they can collectively contribute to the attainment of
company goals.
3.

DIRECTING: - The next logical function after completing planning and

organizing is the execution of the plan. The basic function of personnel
management at any level is motivating, commanding, leading and
activating people. The willing and effective co-operative of employees for
the attainment of organizational goals, is possible through proper direction.
Thus, direction is an important managerial function in building sound
industrial and human relations besides securing employee contribution.
Co-ordination deals with the task of blending efforts in order to ensure
successful attainment of an objective.

66

4.

CONTROLLING: - After planning, organizing and directing the various

activities of the personnel management, the performance is to be verified
in order to know that the personnel functions are performed in conformity
with the plans and directions. Controlling also involves checking,
verifying comparing of the actual with the plans, identification of
deviations, if any, and correcting of identified deviations. Thus, action and
peration are adjusted to pre-determined plans and standard through control.

Operative Functions:The operative functions of human resources management are related to

specific activities of personnel management employment, development, compensation
and relations. All these functions are introduced by managerial functions.
1. EMPLOYEMENT: - It is the first operative function of HRM. Employments is
concerned with securing and employing the people possessing required kind and
level of human resources necessary achieve the organizational objectives. It
covers the functions such as job analysis, human resources planning,
recruitment, selection, placement, induction and internal mobility.
2.

HUMAN RESOURCE DEVELOPMENT:- It is the process of improving,

moulding and changing the skills, knowledge, creative ability, aptitude.
Attitude, values, commitment, etc., based on present and future job and
organizational requirements.

67

This includes:a)

Performance appraisal.

b)

Training.

c)

Management development.

d)

Organization development.

3. COMPENSATION: - It is the process of providing adequate, equitable and fair

remuneration to the employees. It includes job evaluation, wage and salary
administration, incentives, bonus, fringe benefits, social security measures, etc.
4. HUMAN RELATIONS: - Human relation is the process of interaction among
human beings. Human relations is an area of management in integrating people
into work situation in a way that motivates them to work together productively,
co-operatively and with economic, psychological and social satisfaction.
a.

Motivating the employees.

b.

Boosting employee morale.

c.

Developing communication skills.

d.

Developing leadership skills.

e.

Counseling the employees in solving their personal, family and

Work problems and releasing their stress, strain and tension.

5. EFFCTIVENESS OF HUMAN RESOURCES MANAGEMENT:Effectiveness of various personnel programmes and practices can be measured
or evaluated of organizational health and human resources accounting, etc.
a)

Organizational health.

b)

Human resources accounting, audit and research.

OBJECTIVES OF HRM:Objectives are pre-determined goals to which individual or group activity in

an organization is directed. Objectives of personnel management are influenced by
organizational objectives and individual and social goals. Institutions are established
to attain certain specific objectives. The objectives of the economic institution are
mostly to earn profits, and of the educational institutions are mostly to impart
education. The fundamental objective of any organization in survival. Organizations
are not just satisfied with this goal. Further, the goal of most of the organizations is
growth and/or profits.
Institutions procure and manage various resources including human to attain
the specified objectives. Thus, human resources are managed to divert and utilize their
resources towards and for the accomplishment of organizational objectives.
Therefore, basically the objectives of human resources management are drawn from
and to contribute to the accomplishment of the organizational objectives.

69

THE OBJECTIVES OF HRM MAY BE AS FOLLOWS:

a) To create and utilize an able and motivated workforce, to accomplish the
basic organizational goals.
b) To establish and maintain sound organizational structure and desirable
working relationships among all the members of the organization.
c) To secure the integration of individual and groups within the organization
by co-ordination of the individual and group goals with those of the
organization.
d) To create facilities and opportunities for individual or group development
so as to match it with the growth of the organization.
e) To attain an effective utilization of human resources in the achievement of
organizational goals.
f) To maintain high employee morale and sound human relations by
sustaining and improving the programmes.
g) To provide an opportunity for expression and voice in management.
h) To provide fair, acceptable and efficient leadership.
i) To provide facilities and conditions of work and creation of favorable
atmosphere for maintaining and stability of employment.

FEATURES OF HUMAN RESOURCES DEVELOPMENT:-

1)

HRD is a systematic and planned approach for the development of

individual in order to achieve organizational, group and individual goals.

2)

HRD is a continuous process for the development of technical, managerial,

behavioural and conceptual skills and knowledge.

3)

HRD develops the skills and knowledge not only at the individual level, but
also at dyadic level, group level and organizational level.

4)

HRD is multi-disciplinary. It draws inputs from engineering, technology,

psychology, anthropology, management commerce, economics, medicine,
etc.

5)

HRD is embodied with techniques and processes.

6)

HRD is essential not only for manufacturing and service industry but also
information technology industry.

SCOPE OF HRD:Human resources management deals with procurement, development,

compensation, maintenance and utilization of human resources. HRD deals with
development of human resources for efficient utilization of these resources in order to
achieve the individual group and organizational goals/ thus the scope of HRM is
wider and HRD is part and parcel of HRM.
71

SIGNIFICANCE OF HUMAN RESOURCES DEVELOPMENT:The effective performance of an organization depends not just on the available
resources, but its quality and competence as required by the organization from time to
time. The difference between two nations largely depends on the level of quality of
human resources. HRD assumes significance in view of the fast changing
organizational environments and need of the organization to adopt new techniques in
order to respond to the environmental changes. The changing environmental factors
include:
1)

Unprecedented increase in competition within and outside the country

consequent upon the announcement and implementation of economic
liberalization.

2)

Trends towards market economy are more prevalent in most of the countries
including the erstwhile communist countries. These trends towards market
economy are resulting in severe competition not only among the industries
around the globe but also industries with the nation
The vitality of human resources to a nation and to the industry depends upon

the level of its development. Organizations to be dynamic, growth-oriented and fastchanging should develop their human resources it needless to say that the organization
possessing competent human resources grow faster and can be dynamic.
72
Organization to be dynamic should possess dynamic human resources. Human
resources to be dynamic should acquire capabilities continuously; adopt the values

and beliefs and aptitude in accordance with changing requirements of the

organization.

CHARACTERSTICS OF HUMAN RESOURCES:Significance of HRD can also be attributed to the distinct characteristics of
human resources. They are:1) Human resources is complete human being i.e. economic, social and
psychological. Employees enter the organization with their values, sentiments,
aptitudes, etc.
2) The competencies of human resources are developed through HRD
programmes.
3) Employees background, expectations, values, etc. vary from person to person.
Therefore, each employee should be managed differently based on different
principles/approach.
4) The value of human resources increases over the time due to continuous
learning process unlike other resources.

73

THE CONCEPT OF HUMAN RESOURCES DEVELOPMENT

(HRD):The concept of HRD was formally introduced by Leonard Nadler in 1969 in
a conference organized by the American society for training and development.
Leonard Nadler defines HRD as those learning experiences which are organized for
a specific time and designed to bring about the possibility of behavioral change.
According to P. SUBBA RAO, HRD, from the organizational point of views
a process in which the employees of an organizational point of view is a process in
which the employees of an organization are helped/motivated to acquire and develop
technical ,managerial and behavioral knowledge, skills and abilities and mould the
values, beliefs and attitudes necessary to perform present and future roles by realizing
the highest human potential with a view to contribute positively to the organizational,
group, individual and social goals.

NEED FOR HRD:All business and industrial organizations are dynamic. Liberalization,
privatization and globalization made the business firms further dynamic.

I. CHANGING JOB REQUIREMENTS:

Organizational dynamism brings

changes in organizational design and job design. The changes in job design bring
changes in organizational design and job design. The changes in job design bring
changes in job description and job specifications. These changes demand for HRD.
74

II.

NEED FOR MULTI-SKILLED HUMAN RESOURCES: The

changing trends in industrlisation, structuring jobs and organizations demand the
employees to take up multiple activities. The customer-centered approach led to
dejobbing, flexible work organizations and flexible work.

III.

ORGANIZATIONAL VIABILITY AND TRANSFORMATION

PROCESS:

Organizational viability is continuously influenced by the

environmental threats. If the organization does not adapt itself to the changing
environmental factors, it will lose its market.

IV.

TECHNOLOGICAL ADVANCES: organizational in order to survive

and develop should adopt the latest technology. Adaptation of the latest
technology will not be complete until they are manned by developed
employees.

V.

ORGANIZATIONAL COMPLEXITY: With the emergence of

increased mechanization and automation, manufacturing of multiple products
and rendering of services, organizations become complex.

RECRUITMENT:Recruitment is defined as, a process to discover the sources of manpower to

meet the requirements of the schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an efficient
workforce.

OBJECTIVES OF RECRUITMENT:
THE OBJECTIVES OF RECRUITMENT ARE:
i.

To attract people with multi-dimensional skills and experiences that suits the
present and future organizational strategies.

ii.

To indicate outsiders with a new perspective to lead the company.

iii.

To infuse fresh blood at all levels of the organization.

iv.

To develop an organizational culture that attracts competent people to the

company.

v.

To devise methodologies for assessing psychological traits.

vi.

To seek out non-conventional development grounds of talent.

vii.

To search for talent globally and not just within the company.

viii.

To design entry pay that competes on quality but not on quantum.

ix.

To anticipate and find people for positions that does not exist yet.

x.

To search or head hunt/head pouch people whose skills fit the companys
values.

PERFORMANCE APPRAISAL:Performance appraisal is a method of evaluating the behavior of employees

in the work spot normally including both the quantitative and qualitative aspects of
job performance. Performance here refers to the degree of accomplishment of the

tasks that make up an individuals job. It indicates how well an individual is fulfilling
the job demands.
Some of the important features of performance appraisal may be captured thus:

Performance appraisal is the systematic description of an employees jobrelevant strengths and weakness.

The basic purpose is to find out how well the employee is performing the job
and establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is a continuous process in every large scale

organization.

NEED FOR PERFORMANCE APPRISAL:Performance appraisal is needed in order to:

1)

Provide information about the performance ranks basing on which

decision regarding salary fixation, confirmation, promotion, transfer and
demotion are taken.

2)

Provide feedback information about the level of achievement and behavior

of sub-ordinate.

3)

Provide information which helps to counsel the sub-ordinate.

77

TRAINING AND DEVELOPMENT:After an employee is selected, placed and introduced he or she must be provided
with training facilities. Training is the act of increasing the knowledge and skill of an
employee for doing a particular job. Training is a short-term educational process and
utilizing a systematic and organized procedure by which employees learn technical
knowledge and skills for a definite purpose.

Dale S.Beach define the training as the

organized procedure by which people learn knowledge and/or skill for a define
purpose.
In other words training improves, changes moulds the employees knowledge,
skill, behavior, aptitude and attitude towards the requirements of the job and
organization. Training refers to the teaching learning activities carried on for the
primary purpose of helping members of an organization, to acquire and apply the
knowledge, skills, abilities and attitudes needed by a particular job and organization.
Thus, training bridges the differences between job requirements and
employees present specifications.

TRAINING OBJECTIVES:a)

To prepare the employee both new and old to meet the present as well as
the changing requirements of the job and the organization.

b)

To prevent obsolescence.

c)

To improve employee for higher level tasks.

78
d)

To build up a second line of competent officers and prepare them to

occupy more responsible positions.

e)

To develop the potentialities of people for the next level job.

f)

To ensure smooth and efficient working of a department.

g)

To ensure economical output of required quality.

CAREER PLANNING AND DEVELOPMENT:A career is all the jobs that are held during ones working life.

Edwin B.

Flippo defined a career as a sequence of separate but related work activities that
provides continuity, order and meaning in a persons life.
Douglas T.Hall defined a career as an individually perceived sequence of
attitudes and behavior associated with work related experiences and activities over the
span of the persons life.
Career management is the process of designing and implementing goals, plans
and strategies to enable the organization to satisfy employee needs while allowing
individuals to achieve their goals.

CAREER STAGES:
Careers can be analyzed based on the career stages. There are five career
stages through which most of us gone through or will go through. These stages
include:-

79
1.

Exploration

2.

Establishment

3.

Mid-career stage

4.

Late career

NEED FOR CAREER PLANNING:Career planning is necessary due to the following reasons:

To attract competent persons and to retain them in the organization.

To provide suitable promotional opportunities.

To enable the employees to develop and make them ready to meet future

challenges.

To increase the utilization of managerial reserves within an organization.

To correct employee placement.

To reduce employee dissatisfaction and turnover.

To improve motivation and morale.

80

DATA ANALYSIS AND INTERPRETATION

1.

Employees have an idea about job enrichment.

Percentage of
Response

Number of respondents

Yes

27

Respondents.
54

No

23

46

Total

50

100

Graphical Representation:

Interpretation:

The above graph reveals that 54% of the employees said that they have an idea about
job enrichment in the organisation.
2. The job enrichment practices in the organization.

Percentage of
Response

Number of respondents
Respondents.

Yes

27

54

No

23

46

Total

50

100

Graphical Representation:

Interpretation:
The above graph reveals that 74% of the employees said that the organisation
is implementing the job enrichment programe.

3. Employee satisfaction with the present job.

Percentage of
Response

Number of respondents
Respondents.

Satisfied

27

54

Not satisfied

11

22

Up to some extent

12

12

Total

50

100

Graphical Representation:

Interpretation:
The above graph shows that 54%of the employees said that they are satisfied
with the present job in the organization.
4. Reasons for an employment boredom and monotonous with the present job.

Percentage of
Response

Number of respondents
Respondents.

Lack of opportunity for

advancement

02

04

Lack of resources

22

44

10

20

Not applicable

16

32

Total

50

100

Lack of motivation from the

superiors

Graphical Representation:

Interpretation:

The above graph reveals that 44% of the employees opined that they were Boredom
and monotonous with the present job because of lack of resources.
5.

The type of additional, variety and challenging job requires for the
opportunities for peoples advancement.

Percentage of
Response

Number of respondents

Skill variety job

14

Respondents.
28

Task identify job

16

32

Autonomy

09

18

Task significance

11

22

Total

50

100

Graphical Representation:

Interpretation:
The above graph depicts that 32% of the employees opined that they required
additional variety and challenging for the opportunities for peoples development.

6. Availability of adequate resource for employee to perform well.

Percentage of
Response

Number of respondents

Yes

12

Respondents.
24

No

38

76

Total

50

100

Graphical Representation:
76

80
70
60
50
40
30

24

20
10
0
Yes

No

Interpretation:
The above graph shows that 24% of the employees said that there is no
adequate resource for an employee to perform well.
7. The type of adequate resources necessary for an employee to perform well.
Percentage of
Response

Number of respondents
Respondents.

12

24

11

22

17

34

Not applicable

10

20

Total

50

100

Information technology
Communication technology
Personnel training and
development

Graphical Representation:

Interpretation:
The above graph reveals that 34% of the employees said that the personnel
training and development are the adequate resources for an employee to perform well.
8. Is there any stimulating and interesting work to the employees.
Percentage of
Response

Number of respondents
Respondents.

Yes

37

74

No

13

26

Total

50

100

Graphical Representation

Interpretation:
The above graph reveals that 74% of the employees said that they are
performing stimulating and intresting work in the organisation.

9. skills requirement to the individuals while performing the work.

Percentage of
Response

Number of respondents
Respondents.
39

78

No

11

22

Total

50

100

Yes

Graphical Representation

Interpretation:
The above graph reveals that 78% of the employees are required skills while
performing the work.

10. The type of skills that the employees have been developed.
Percentage of
Response

Number of respondents
Respondents.
15

30

Motivating

12

24

Leadership

18

36

Communication skills

Job knowledge

05

10

Total

50

100

Graphical Representation

Interpretation:
The above graph shows that 36% of the employees said that they required
leadership skills that have been developed.
11. Employee opinion on enrichment of the job.
Percentage of
Response

Number of respondents
Respondents.

Giving workers a feeling of

14

28

17

34

09

18

personal responsibility
Giving workers feedback on
their performance
Involving workers in
analysis and change of
physical assets

Cannot say
Total

10
50

20
100

Graphical Representation

Interpretation:
The above graph shows that 34% of the employees opined that giving workers
feedback on their performance enriches the job of the employee.
12.

Employee opinion on limitations of job enrichment the job in the

organization.
Percentage of
Response

Number of respondents
Respondents.

Technology

12

24

Cost
Attitude of managers
Attitude of workers
Total

24
05
09
50

48
10
18
100

Graphical Representation

Interpretation:
The above graph shows that 48% of the employees said that cost is the
limitation to enrich the job in the organization.
13. Employee opinion on control over the work.

Percentage of
Response

Number of respondents
Respondents.

Yes

39

78

No

11

22

Total

50

100

Graphical Representation
90
80

78

70
60
50
40
30

22

20
10
0
Yes

No

Interpretation
The above graph reveals that 78% of employees agreed that work can be
controlled.

14.

The type of changes occurred in the employee performance by taking the

feedback.
Percentage of
Response

Number of respondents
Respondents.
52

Solving problems

26

Taking initiative

12

24

Making decisions

12

24

Total

50

100

Graphical Representation

Interpretation
The graphs represents that 52% of employees opined that problem solving
change was occurred in the employee performance by taking feedback.
15. The job enrichment leads the job satisfaction.

Percentage of
Response

Number of respondents
Respondents.

Yes

26

52

No

24

48

Total

50

100

Graphical Representation

Interpretation
The above graph shows that 52% of the employees said that job enrichment
leads to job satisfaction.
96

FINDINGS
After conducting the survey on job enrichment, I came to know that the
following requirements that are implemented to some extent and can be improved
further.
1.

It is observed that more than 50% of the employees know about job
enrichment.

2.

it is observed that most of the employees are satisfied with present job in
united India insurance co. ltd

3.

It was observed that 44% of employees were felling boredom and monotonous
with the present job because lack of resources.

4.

It is observed that the personnel training and development are the adequate
resources for an employee to perform well.

5.

it is identified that the 74% of the employees are performing stimulating and
interesting work in the united India insurance co. ltd

6.

It was observed that most of the employees require skills while performing the
work.

7.

The leadership skills that have been developed by the employees in the
organization.

8.

More than half of the employees have control over the work.

9.

It was understood that problem solving change was occurred in the employee
performance by taking feed back.

10.

The infrastructure in the office is also not good.

97

SUGGESTIONS
Employee empowerment is required.
Time bound promotions with financial merits.
Technology motivation and communication skills further enrich employees.
Employees should develop not only the leadership skills but also the
communication skills, motivating skills, job knowledge skills.
Training in information technology and job related training will improve the job
enrichment.

98

CONCLUSION
Employee enrichment is my project work in UNITED INDIA INSURANCE
CO. LTD. Employee enrichment is the process of implementing work process and
environments so they are more satisfying for employees. And the company has
variety of insurance products to provide insurance cover from bullock carts to
satellites.
The united India insurance co.ltd is a big organization all the employees are
satisfied with the present job and the adequate resource is personnel training and
development.
As future is uncertain being caution about the life and health has become the
matter of importance today.

In future the insurance industry is very dominant. It is good to see that there is
high competition in the insurance industry.

99

BIBLIOGRAPHY
S.NO

AUTHOR

BOOKNAME

EDITION

Human resource
1

Prof. T.V. Rao

PUBLICATION

YEAR

Himalaya
th

12
Development

2002
publications

Personnel and
Himalaya
2

C.B. Mamoria

human resource

3rd

2007
publications

Management
Human Resource
3

Himalaya
th

P. Subba Rao

4
Management

2006
Publications

R. Thomas and C.

Developing Human

Himalaya
3rd

4
Mabey

Resources

Publications

Personnel
5

2007

Himalaya
6th

Arun Monappa
Management

2004
Publications

Journals:
Business India
Search Engine:
www.insurenceindia.com
www.uiic.co.in
100

QUESTIONNAIRE
1)

Do you have any idea about job enrichment?

a) Yes

2)

Does your organization practice the job enrichment?

a) Yes

3)

b) no

Are you satisfied with the present job?

a) Satisfied

4)

b) No

b) not satisfied

c) up to some extent.

If not satisfied, why are you boring and monotonous with the present job?
a) Lack of opportunity for advancement

b) Lack of resources.
c) Lack of motivation from the superiors
5)

What type of additional, variety and challenging job requires for the
opportunities for peoples development?

6)

a) Skill variety job.

b) Task identify job.

c) Autonomy.

d) Task significance.

Is there an adequate resource for employee to perform well?

a) Yes

b) No
101

7)

What are the adequate resources necessary for employees to perform well?
a) Information technology.
b) Communication technology.
c) Personnel training and development.

8)

Is there any stimulating and interesting work to the employee?

a)

9)

Yes

Are there any skills required to the individuals while performing the work?
a) Yes

10)

b) No

b) No

What type of skills that the employees have been developed?

a) Communication skill.

b) Motivating.

c) Leadership.

d) Job knowledge
11)

According to your opinion, how to enrich the job?

a) Giving workers a feeling of personal responsibility.
b) Giving workers feedback on their performance.
c) Involving workers in analysis and change of physical assets.

102
12)

According to your opinion, what are the limitations of enrich the job in your
organization?

13)

a)

Technology

b)

Cost

c)

Attitude of managers

d)

Attitude of workers

Is there any control over the work?

a)

Yes

b) no

14) By taking feedback, what types of change the employee have?

a)

Solving problems.

b) Taking initiative. c) Making decisions.

15)

Does the job enrichment provide job satisfaction?

a) Yes

16)

b) No

What suggestions do you make to improve job enrichment?

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103