PERSONNEL MANAGEMENT AND OFFICE ADMINISTRATION IN INSURANCE COMPANIES

Subject : Banking and Insurance

Submitted To Submitted By
Mrs. Namita Kohli Nisha Goyal
Lecturer in Commerce M.Com 2nd year
Roll No. 2530
Session : 2010 – 11
Guru Nanak Khalsa College For Women,
Model Town, Ludhiana
PERSONNEL MANAGEMENT AND OFFICE ADMINISTRATION IN INSURANCE COMPANIES

MEANING
It is a universal truth that “People” are the greatest assets of any organisation therefore management of people or personnel management in any organisation is an important feature of any organisation. It perform the basic function of the management i.e. planning, organsizing, directing and controlling the procurement, development, compensation and maintenance of the people for the purpose of contributing to the organisation, individual and social goals. The basic functions/activities of a personnel management is the same for any type of organisation , whether it is manufacturing or insurance sector. The personnel management perform the following activities:- 1. Recruitment and Selection A. Formulation of organisational objectives and preparation of human plan. B. Resources Analysis : identifying the number, type of people, skills and other human resources required based on manpower planning. 2. Motivation Motivation is very important subject in the study of personnel management. It may look simple yet in practice it is very complex matter because what motivates people to do things is not easy to determine.

3. Morale If the morale is high the employees identify themselves with the organisation, work willingly and carry co-operate whole heartedly and carry out orders of the superiors ungrudgingly. 4. Appraisal The appraisal means to judge the performance of an employee his behaviour at work, the level of his knowledge, skills and abilities and the kind of work he is able to do well or not do well. 5. Training Training is a learning experience, which helps a person to improve his or her ability to perform well on the job. 6. Discipline Discipline means that norms, rules, role expectation duties and behaviour to be followed at work. The recruitment to posts in class III and class IV are at present governed by instruction 1979, dated 27-11-1919 and the various circular that have been issued on the subject from time to time, in suppressions of these instructions the chairman has now issued LIC recruitment of (class III and class IV stall) instructions 1993. LIC RECRUITMENT (OF CLASS III & CLASS IV STAFF) INSTRUCTION 1993 1. Title and commencement i. These instructions may be called the LIC recruitment of class III and class IV staff on the administrative side. ii. They shall came into force with immediate effect – V. 2. Application of the instructions These instructions shall be apply to all recruitment in class III and class IV posts on the administrative side. 3. Definitions In these instructions unless there is anything repugnant in the subject or context. i. Appointing authority shall mean appointing authority as defined in scheduled to the staff regulations. ii. Cader Strength shall mean class III and class IV posts sanctioned under instruction of the chairman for the central office, zonal offices, divisional offices, branch offices, and training centres. iii. Selection committee shall mean the committee prescribed to assist the appoint authority in making selection in terms of regulation of the (staff) regulations. iv. (Staff) regulation shall mean LIC of India (staff) regulation 1960. v. Competent authority shall mean the managing directors. 4. Post of which recruitment can be made under these instructions Recruitment under these instructions shall all be resisted to only for the posts enumerated in annexure – I to these instructions. 5. Vacancies Recruitment shall be only against the vacancies in the sanctioned posts. For this purpose a panel of candidates for appointment shall preferred. In order to prepared such a panel the number of persons to be empanelled in the first year of recruitment under these instructions shall be twice the number of posts are likely to be filled in during the year and thereafter the panel will be agumenrled by twice the number of posts that are likely to be filled in during the year less the member already available in the panel in the notification should be made clear that. Those who are impaneled will be considered for appointment against regular vacancies as and where the seek arises, that in the mean while if occasion demands, they will ne offered appointment on a purely temporary basis. While notifying the number to be empanelled to the employment exchange or while submitting the returns this fact should be made clear. 6. Mode of recruitment and procedure for inviting applications a. Recruitment shall be made on divisional basis. In case of central office, zonal offices and training centres these shall be treated as part of the divisional office within the territorial jurisdiction of which they are situated where more than one division exists at a place, the nearly opened divisions shall be treated as part of the oldest divisions. b. Though recruitment shall be made on divisional basis, the process inviting applications conducting tests and declaration of results of the whether tests in so far as recruitment to class III posts are concerned shall be under the instructions of the zonal manager and the process may be for one or more divisional in the zone as may be necessary. Note: Where more than one state falls under the jurisdiction of a division and the offices in the division following under each state shall be considered as a separate unit for the purpose and recruitment. c. The normal mode of recruitment for class III posts shall be by inviting applications through advertisement in the local newspapers and form the employment exchanges. The mode of recruitment for class IV posts shall be by inviting applications through employment exchange only, provided however where the number of posts available in class IV is large and it is felt that recruitment by open advertisement is necessary, the M.D. may in such cases considering all the circumstances permit a division to resort to recruitment to post in class IV by open advertisement. d. The format of the employment notice shall conform as nearly as possible to the draft given in annexure IV. e. Section 5 of the employment exchanges (compulsory notification of vacancies act, 1959) read with rule of the ruled under the act required each employed to furnish to the local employment exchange quarterly returned of vacancies within 3 days of the due dates viz., 31st March , 30th June, 31st Sept., 31st Dec. As the act requires all the employment exchange in the divisions to be notified of the vacancies the zonal manager should at the time of issue of advertisement simultaneously ensure that number to be empanelled in each division is notified to all the employment exchange in the division concerned including those at centres where the branch office under the control of such divisions are situated the regional employment exchanges should also be notified by the zonal office concerns, simultaneously. f. The division will communicate their requirement of class III staff in each post to the zonal manager who shall issue an advertisement for and on behalf of one of more divisions. Arrange to intimate to the regiona employment exchanges in the areas as also to the Zilla Sanik boards etc. * Fix up an agency out of the panels prepared by central office to undertake the job of test administration. * Fix a date for the test. * Take any administrative steps necessary for the conduct of the recruitment test and declare results of the written test. * In the application for appointment every candidate will specify the division for which is applying. No change of divisions shall be permitted at a later date. g. The candidate will also indicate the test centre from the given list from where he would like to appear. The test centre however, shall be within the area of the division for which the candidate is a applying. h. The agency designated by the zonal manager will process scrutinize the application and issue can letters for written test, fix up centres, develop question papers. Administer the test and prepare a test of successful candidates in the written test in descending order of marks obtained in the written test for each division separately. The list shall be further subdivided into category wise i.e. general scheduled caste, scheduled tribe, ex –serviceman and physically handicapped. i. All paper for written test except language paper, shall be bilingual candidates will have the option to answer such paper in hindi or English. Where any trade test is prescribed the candidates who have the passed the pre –recruitment test shall only be called to appear for such trade test. The recruiting agency shall for the preparation of the trade test paper or conduct of trade test. All the applications for posts in class III any such amount. Which the central office may prescribed from time to time, for posts in class IV the application fee shall be Rs. 30/- or any such amount as the central office may prescribed forms time to time candidates belonging to schedules castes and scheduled tribes will not be required to pay any fee. j. The candidate who have come out successful into pre –recruitment test and trade for interview. In case all the number of successful candidates is large. Then on the basis of ranking lists the respective division shall call for interview, a number equal to 3 times the number to be empanelled in each category. This restriction shall not apply to candidates belonging to SO/ST. All candidates belonging o SC/ST who have come out successful in the written test and trade test wherever prescribed shall be called for interview. As far as ex-service and physically handicapped candidates are concerned the number of candidate to be called for interview shall be equal to 3 times the number of vacancies reserved for them. 7. Conditions of Eligibility i. Age : -The age of candidate shall not be less than 18 years and not more than 28 years on the first day of month in which the employment notice is published in the newspapers and or vacancies are notified to the employment exchange inviting applications. ii. Identification of Candidate:- With the view to eliminate impersonation an applicant in addition to filling in the biodata form/application form in his/her own handwriting affixing his/her recent photo to the form and signing it shall be required at the time and pre recruitment test to sign on the call letter issued to him/her in the space provided for similarly the applicant shall be required to sign an relevant papers at the times of interview and medical examination. The signature obtained should be verified at every stage. iii. Pre-recruitment test:- There shall be pre recruitment test to the post of assistant, stenographer, typist, record class. iv. Interview:- For the purpose a committee shall be the committee shall interview the eligible candidates and allot marks for interview where pre –recruitment written test/trade test is prescribed the candidates who has passed the written test/trade test along hall for interview. v. Marks for interview and selection of candidates for ranking :- The marks to be allotted for test and interview shall be as shown below where pre –recruitment written test is prescribed for selection to the post Pre-recruitment written test : 100 marks maximum Interview : 20 marks Total : 120 marks Marks secured at the pre-recruitment written test shall be weight on a proportionate basis to correspond marks out of 100. Where no pre –recruitment test is prescribed for selection to a post. The maximum marks for interview shall be 100. vi. Ranking List:- This test should be placed before the appoint authority for acceptance and publication of ranking list. The appointing authority shall accept the ranking list prepared in the manner set out in para II above where however the appointing authority is unable to accept the recommendations it shall record in writing the reasons for disagreeing with the recommendations of the selection committee and pass such orders at it may deem fit. On the ranking list being accepted by the appointing authority the same shall be published on the notice board of the divisional office. vii. Verification of Certificates: - All the original certificates related to age, qualifications, experience, caste in the case of SC/ST candidates and other relevant certificate should be verified at the time of interview. viii. Appointment form Panel:- All the appointment against permanent posts shall be strictly in according with the making list duly published. A candidate who does not accept the offer of appointment is liable to have his name removed from the list will be given permanent appointment immediately to the extent of vacancies available for remaining candidate will be considered for appointment on regular basis when the vacancies arises. ix. Medical Examination:- No person shall be appointed to the service of the corporation unless he/she has been certified to be medically fit for discharging his/her duties. If at the time of medical examination any lady applicant is found to be pregnant her appointment in the corporation shall be considered 9 month after the dated of delivery subject to further medical examination. Letter of appointment training probation and confirmation. The letter of appointment to be issued to the candidates who have been selected for appointment shall be in the form as prescribed in annexure VII and annexure VIII A. All those appointment on recruitment shall on probation as required under the (staff) those who have been selected for appointment as assistant, shall be required to undergo theoretical training for a period of 2 weeks and practical training for a period of 2% months during the period of probation. The candidates appointed on probation shall be eligible for confirmation. In completion of the period of probation subject to work record being found satisfactory and in the base of these whose have been appointed as assistant subject to the successful completion for the training also. Provided however, the period of probation may be extended as provided in the (staff) regulation. Provided further that a candidate on probation shall be liable to be discharged from service without any notice and without, assigning any reason what so ever. x. Remuneration :- All the first appointment shall be made in the minimum basis pay of the scale applicable to the post to which the appointment is made graduates who are appointed to post in the scale of assistant all be eligible to two additional. xi. Recruitment on Appointment : - Provided further at the pay fixation of ex-servicemen appointed in the service of the corporation all be as per instruction issued from time to time in the is regard. xii. Relaxation in Age Limit:- Qualification relaxation in age limit is available but relaxation in case of qualification can’t provided by any authority is any exception cases. SCOPE

INSURANCE PERSONNEL Insurance personnel can be conveniently discussed in the indicated in the chart, but the classification is not rigid. Board of Directors
Head Office

Claims Inspectors
Deputy (or Assitt. GM)
General Manager
Surveyors
Typists
Messengers
Clerical Staff
Chief Clerks
Departmental Manager
Chief Accountant
Secretary
Agency Manager

* Office Administration In Insurance Company In any business undertaking, good organisation is essential features of efficient management. This is specially true of insurance because of the complexity of the business and the importance of providing first class service to the insuring public. Insurance is old established, mid satisfactory method of general organisation have been evolved from long experience. Organisation, however, can never be static, because there are always now methods being devised in office practice generally. It is no exaggeration to say that insurance offices, generally speaking are in the fore front in the adoption of new ideas so that for instance, mechanisation now plays an important part in the work of practically every insurance office. While there are different sections of insurance, the general principles of organisations and routine are the same; they are merely adapted to the special needs of each section. Again, individual offices vary in their methods. Insurance is a highly skilled and specialised business and demands of those responsible for its administration qualifications of the higher degree. This is ample scope for initiative and the use of different talents in the conduct of the business. It is often been remarked that there are no insuperable barriers in the business, so that every junior has the possibility of eventually rising to the position of general manager. The department of office administration in divisional office has to provide “Material” for the smooth running of the office and has to give service to employee who run the office. The department of office administration concerned with the following multifarious services such as:- 1. Purchases, maintenance, safety and security of office equipment and promises. 2. Purchases/ repairs of office equipment such as type-writers, calculators, Photostat, water coolers, tube lights. 3. Purchase of various store items, stationery and software required by computer. 4. Maintenance of office record, seating arrangements, ventilation, general cleanliness, safety and security of office premises equipments are also part of office service duties. 5. Payment of salary, travelling expenses, leave concessions, various bill etc. are also looked after by office services duties. OBJECTIVES OF ADMINISTRATIVE OFFICE MANAGEMENT Some of the common objectives of administrative office management are:- 1. To co-ordinate the activities of the administrative office management function with the activities of other organisational functions. 2. To maintain reasonable quantity and quality standards so that satisfactory levels of production are possible. 3. To develop efficient work procedures and process in order to increase the organisation profit margin. 4. To provide a satisfactory physical and mental working environment for the organisation’s employees. 5. To enhance the effective supervision of office personnel. 6. To make information available when needed and where needed. 7. To help define (kitten and responsibilities of employees within the unit and to develop satisfactory lines of communication among these employees and among other employees in the organisation.) 8. To schedule work properly so that all jobs are completed on time. 9. To develop procedures to help select the right person at the right job. 10. To provide ample opportunities for helping employees maintain a high level of work effectiveness. 11. To make sure that specialised equipment is efficiently and properly utilized. 12. To provide ample security for materials and information that falls under the jurisdiction of administrative office manager. FUNCTION OF OFFICE ADMINISTRATION DEPARTMENT IN INSURANCE ORGANISATION 1. Repair and maintenance of equipment. 2. Inward and outward mail service. 3. Purchase of office furniture and inventory. 4. Repair of office business machine water cooler, our conditioning etc. 5. Fire protection. 6. Office up keep and maintenance. 7. Purchase of stationery and stores and printing of forms. 8. Telephones and office correspondence. 9. Destruction of old records and disposal of old unserviceable furniture and equipment. 10. Purchase of site for office, residential, accommodation for the staff as per the needs. 11. Office accommodation including office location, office layout and office building. 12. Payment of salary bills, travelling expenses etc. 13. Granting of leaves, deduction of income tax from payment made to the employees grant of increment, retirement benefits, provident funds of employees. 14. Inward and outward mail arrangement to be made for allocation of post/bab/box and also telegraphic address by paying prescribed fees. 15. Office reproduction services and duplicating office recording, filling and indexing of data. ROLE AND IMPORTANCE OF OFFICE ADMINISTRATION IN INSURANCE ENTERPRISES 1. Role in dispatch of letters The office department plays an important role in dispatch of letters in the following ways:- i. Ordinary and registered post should be sorted out. ii. Post should be weighted and appropriate stamps fixed. iii. All registered letters should be carefully and thoroughly checked in a letter register. 2. Role of Office in keeping and maintenance i. General cleanliness of the office promises and campus. ii. Pre – monsoon repair of office terrace. iii. Cleaning of underground pumps, overhead tank. iv. Sweeping and waste paper to be stored in a specific place. v. Repair of building and its white was sitter due intervals. 3. Role of Office relating to office furniture and fittings i. Purchase of standardized and popular brand of furniture. ii. Repair of furniture at frequent intervals to be made. iii. Old furniture can be used after repair and painting. iv. Capital budget has to be prepared for each years at the end of every financial year to consider the need for furniture. v. Proper inventory of furniture, preparation for the oar and tailed schedule vi. Maintenance of stock inventory register. 4. Role of Office in Maintaining office equipment i. Machines should be put to maximum use. ii. Contract for the service of three machines should be entered into equipment register such as type writer duplicators etc. iii. Proper security of these equipment be made. iv. Proper record of the forms to whom service contracts are given. v. Disposal of obsolete and unserviceable office furniture equipments. 5. Role of office in stores, printing and stationery i. Each store is given code number. Stores kept in store ledgers. See the minimum limit and order for new purchases. ii. Stores safety from pilferage, white ants and fire loss etc. iii. At the end of the year take stock valuation for knowing its values for closing of accounts. CONCLUSION Office administrative has important role in insurance. Companies and without office equipment no business can run. The department of office administration in divisional office has to provide “Material” for the smooth running of the office and has to give service to employee who run the office.

BIBLIOGRAPHY * www.google.com * correspondence notes * Sukhdev Singh * Jagroop Singh