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Dentsu Media and communication Ltd, Bangalore. Submitted in partial fulfillment of the requirement for the award of Degree of Master of Business Administration By PRAVEENA K S Roll No.: 27099
DECLARATION
I hereby declare that the project report titled Level of Employee Engagement, submitted in the partial fulfillment of the requirement for the award of degree of MBA, is my original work. This has not been submitted in part or full towards any other degree or diploma.
ACKNOWLEDGMENT
First and foremost I would like to thank my parents for their constant support in all my endeavors. I would like to express my sincere thanks and gratitude to Mr.Vimal Parthasarathy, Director, Dentsu Media and communications Ltd. Bangalore, for providing me an opportunity to pursue this project in their organization and for his constant motivation, guidance and support throughout the project. I am also grateful to Mr. Kishore Singh, Media Head, for his valuable help and guidance during the initial stages of my project. I would like to thank the Director and all the Faculty members of BIM, Trichy, for equipping me with necessary knowledge to carry out my project.
PLACE: Bangalore
PRAVEENA K S
SYNOPSIS
Bajaj Allianz Life Insurance Company Ltd. is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. Allianz SE is a leading insurance conglomerate globally having over 119 years of financial experience and Bajaj FinServ is one of the top financial services businesses in India. Since the market share of LIC has increased but that of private players has decreased, the tough challenge faced by private players in life insurance is to keep expense under tight control and to increase productivity (number of policies per agent). As employee productivity is connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. The proposed method is to categorize sales managers in Bajaj Allianz Life Insurance Company Ltd. into three levels engaged, not engaged and actively disengaged and then measure engagement levels through a questionnaire that was designed to measure engagement on three dimensions motivation, satisfaction and effectiveness. Motivation is measured through the satisfaction of organizational needs BASIC, INTERMEDIATE and ADVANCED. Satisfaction is measured through the drivers - internal communication and planning, the employees role in the company, training and career development opportunities, pay and benefits and the employees relation with his/ her peers and superiors. Effectiveness is measured on three levels ones own goals, managers expectations and organizations expectations. On analysis, it was found that a majority of the sales managers fell under the not engaged category. Sales managers felt that they did not have the necessary brochures to sell policies to customers and that incentives were sometimes not given. They also felt that the company did not take any measures to help in work/life balance and that the training provided was not satisfactory. Details of the analysis have been provided in the Annexure and suggestions to improve on these dimensions have been proposed.
TABLE OF CONTENTS
DECLARATION ACKNOWLEDGEMENT SYNOPSIS Page No. 1. Introduction
1.1. Life Insurance Industry
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1.2. About Bajaj Allianz
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1.3. Bajaj Group
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2. Objective of the Project
10 3. Literature review
3.1. Employee Engagement
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3.2. Categories of Employee engagement
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3.3. Importance of Employee engagement
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Motivation 15
4.1.2. Satisfaction
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4.1.3. Effectiveness
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5.2. Analysis 6. Recommendations and Conclusion
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CHAPTER 1 INTRODUCTION
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Three sources of strength,driving our innovation,bringing positive change to people and society. Ideas that reach beyond the imaginable. Technology that crosses the bounds of possibilities. Entrepreneurship that surpasses the expected.
Dentsu Incorporated ( Kabushiki-gaisha Dents?) (TYO: 4324) is one of the largest advertising agency brands in the world. Its headquarters are located in the Dentsu Building in the Shiodome district of Minato, Tokyo.[2] Dentsu's sales are more than double its nearest competitor, Hakuhodo or ADK, in the Japanese market. Dentsu's success and dominance in Japan stems from Dentsu's origins as a media representative during the early part of the 20th Century. Dentsu produced the first newspaper advertisements as well as the first television commercials in Japan. Dentsu now offers a range of services, all in-house, from traditional marketing and creative, to specialty disciplines such as sports marketing, entertainment rights, PR, digital contents, and a growing range of communications services.
OFFICE NETWORK:
Dentsu's Global Network spans the entire world, from the Americas, Europe and Russia, Asia and Oceania, China and Taiwan, India and the Middle East, all the way to North Africa. Dentsu works actively to strengthen ties with overseas companies that can provide specialized
high-quality services to our clients. Moreover, in October 2010 Dentsu created a new organization called "Dentsu Network West" to further accelerate our global strategy, as well as support and reinforce our U.S. and European businesses. In these and many other ways Dentsu is continually striving to improve client services and build a more competitive global network.
DIVERSE PORTFOLIOS:
The Dentsu Group's reach extends beyond mass media advertising services such as media planning, creative execution and various marketing and sales promotional activities. As importance is being placed on the area of social communication in the world today, together with its clients, the Group is actively involved in communication activities that serve societal needs as well as those that encourage consumption. Furthermore, the Group constantly promotes the establishment of new business domains through strong relationships with content holders in the business of sports, where events such as the Olympic Gamesboth summer and winterand the FIFA World Cup attract widespread interest, and in the entertainment business, particularly feature films.
in diversification in the modes of communication between companies and consumers as well as a considerable shift in the needs of clients. In response, the Dentsu Group provides integrated solution services drawing on a deep reservoir of accumulated marketing-related expertise and solid relationships with leading media companies. Today, however, the emphasis is on the search for innovation in a new era of communication. Consequently, the Group will strive to reinforce its integrated solution capabilities. Starting with the advertising and promotional domains, the Group aims to broaden the scope of its solutions to include upstream domains, such as product development and management and operating strategies. Considering the multi lingual diversity in the country and in order to effectively reach and communicate with the customers, the company has initiated the process of communicating with the customer his/her preferred language. The welcome letter, issued along with the policy bond is printed in English as well as in 11 major regional languages.
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Bajaj Allianz has a dedicated cell for customer service which is titled Customer Focus Unit (CFU). An E-servicing module, whereby customer requests pertaining to policy servicing can be done electronically has been initiated. The company has also developed an automated Interactive Voice Response (IVR) for the benefit of customers for routine policy servicing matters. In order to provide better service to the customers across the breadth of the country, IVR options have been made available in various vernacular languages. CORPORATE COMMUNICATION: The company was ranked 26th as per the ET's Most Trusted Service Brand Survey for the year 2009-10 and moved six places from the previous year. In association with IBN 7 network, it sponsored the Super Heroes a Disability award to recognize and help make a difference to the lives of 18 physically challenged individuals nominated from across the country. Bajaj Allianz Life was involved in a couple of Hindi movie associations in a unique way which fitted with the companys brand proposition viz Love Aaj Kal and Paa, through which it promoted its new ad campaign which was interspersed with the film promotions. A 360 degree campaign for tax saving plans and the unique concept of Guarantee Express with synchronized activities in print, television, radio and road shows at the local offices was also accentuated. In addition to this Your Company sponsored the Annual Boat Race in Kerala, India-South Africa cricket series, election campaign in Network 18 channels and Budget campaign in Times NOW and ET NOW network channels which yielded good visibility at optimum cost.
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The financial services and wind energy businesses were transferred to Bajaj FinServ Limited (BFS) as part of the recently concluded demerger of Bajaj Auto Limited, approved by the Hon. High Court of Judicature at Bombay by its order dated December 18, 2007. The demerger is effective from the Appointed Date i.e. closing hours of business on March 31, 2007. Bajaj FinServ strives to be one of the top financial services businesses in India focused on delivering superior customer experience through competitive products and class leading services while providing consistent and superior returns to our shareholders and maintaining the high levels of integrity of Bajaj. The company is currently engaged in life insurance; general insurance and consumer finance businesses and has plans to expand its business by offering a wide array of financial products and services in India. Apart from financial services, BFS is also active in wind-energy generation.
CHAPTER 2
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In order for any workforce to be productive, it is essential that they are engaged. In order to achieve high performance levels, an organization has to ensure that its employees are engaged. Engaged employees work with passion and feel a strong connection to their company. Engaged employees are more productive, more profitable, more customerfocused, safer and less likely to leave their employer. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. Since the life insurance industry has the tough challenge to keep expense under tight control and to increase productivity (number of polices per agent), sales managers succumb to a lot of pressure to achieve their sales targets. The objective of this project is
To analyze the levels of engagement of sales managers in Tamil Nadu To categorize them into three levels engaged, not engaged and actively disengaged
To find out the factors which cause employees to feel disengaged To suggest measures to improve employee engagement at Bajaj Allianz Life Insurance
CHAPTER 3
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LITERATURE REVIEW
ACTIVELY DISENGAGED "Actively Disengaged" employees are consistently against virtually everything. They're not just unhappy at work; they're busy acting out their unhappiness. They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning.
Provides a high-energy working environment Boosts business growth Makes the employees effective brand ambassadors for the company A highly engaged employee will consistently deliver beyond expectations.
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Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them. WORK/ LIFE BALANCE A persons family life influences his wok life. When an employee realizes that the organization is considering his familys benefits also, he will have an emotional attachment with the organization which leads to engagement. PERSONAL EMPOWERMENT Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create an environment that is challenging and trustful, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward.
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ENGAGEMEN T
4.1.1 MOTIVATION Motivation is the energy behind human behavior. Motivation is what channels and directs the behavior and what maintains and sustains the action. Based on the theories of motivation put forth by Maslow (Hierarchical theory of needs), Alderfer (ERG model)
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and Herzberg (Two factor theory), organizational needs can be classified into three levels BASIC, INTERMEDIATE and ADVANCED. BASIC: The first level is a categorization of items that address basic needs of the job. BASIC items are fundamental to the job. If they are left unmet or unfulfilled, employees could become dissatisfied with their job and the company. INTERMEDIATE: The second level is a categorization of items that address growth and development needs. These items make up the INTERMEDIATE category. Once the basic needs are met, employees can focus more on INTERMEDIATE factors. If INTERMEDIATE factors are fulfilled, satisfaction with the job and the company will improve. ADVANCED: The third level is a categorization of items that address organizational commitment needs. These items make up the ADVANCED factors. To exceed employees expectations, ADVANCED factors need to be addressed. One level does not have to be completely fulfilled to reach the next level. If low scores are present for items in the BASIC level, then measures must be taken to work on these items, first.
4.1.2 SATISFACTION
Satisfaction is a positive or pleasurable emotional state resulting from ones job or job experience. There are several factors that make up or influence employee satisfaction internal communication and planning, the employees role in the company, training and career development opportunities, pay and benefits and the employees relation with his/ her peers and superiors. INTERNAL COMMUNICATION AND PLANNING: When an employee has the freedom to voice his/her difficulties in the job to his/her manager and if the manager takes steps to resolve the problems/difficulties posed,
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effective communication is in place. A manager must also make sure that the employees understand what is expected of them in the job. ROLE: When the employees role in the company makes him/her get absorbed in his/her work and allows him/her adequate autonomy in making decisions, he/ she becomes satisfied with his/her role. TRAINING AND CAREER DEVELOPMENT OPPORTUNITIES: An organization should provide its employees adequate training at the time of induction to allow them to get settled in their work environment. Apart from the induction training, personal development training as well as training on recent developments in the field is essential. PAY AND BENEFITS: An employee should feel that his/her pay is adequate for his responsibilities. Apart from this he/she should get adequate incentives when targets are achieved and reward and recognition programs should be held to honor consistent top performers. The company should also make sure that the employees are not too stressed and arrange for regular relaxation games and may be an annual relaxation trip in order to boost employee morale and foster better workplace relations. RELATIONS WITH PEERS AND MANAGERS: An employee has to build a good rapport with not only his/her peers but also his/her manager. The manager should be approachable and should treat all employees fairly. A good relation with peers and managers would create a more productive and effective workforce. 4.1.3 EFFECTIVENESS The ability of an employee to perform his/her job in a way that meets expectations and requirements of co-workers, superiors and the organization. Effectiveness of a employee can be measured on three levels ones own goals, managers expectations and organizations expectations.
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MY GOALS: This is connected to how best the employee thinks he/she has performed his /her job and whether he/she is able to achieve his/her targets on time. MANAGERS EXPECTATIONS: When the manager appreciates the employee when he/she achieves targets and recognizes consistent top performers, an employee can be sure that he/she has met the managers expectations. ORGANIZATIONS EXPECTATIONS: When an employee has a clear understanding of his/her role in the organization and how his/ her job contributes to the overall mission and vision of the organization, he/ she has fulfilled the expectations of the organization. A questionnaire consisting of 26 closed ended questions, as shown in Table A1(Refer Annexure) was designed that measures employee engagement through the three factor model described above.
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5.1. METHODOLOGY:
The questionnaire as shown in Table A1(refer Annexure), was administered to a sample of 100 frontline sales managers from all over Tamil Nadu through telephonic conversation. Of the 100 respondents, 10 were new recruits with less than one month of work experience. The respondents were also asked for three suggestions, which they thought held importance, to improve job satisfaction at Bajaj Allianz.
5.2. ANALYSIS:
SAMPLE DISTRIBUTION: Of the 90 sales managers considered for analysis, Fig 5.2.1 shows the distribution based on their level of experience and gender.
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It has been identified as seen in Fig. 5.2.2 that 19% fall under the engaged category, 68% under the not engaged category and 13% under the actively disengaged category.
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DRIVER ANALYSIS: i. MOTIVATION: On analysis of the responses received from the sales managers, it was found that 73% felt that their basic needs were met, 78 % intermediate and 76% advanced needs.18 sales managers (20%) out of 90 felt that all of their motivational needs (ie. BASIC, INTERMEDIATE and ADVANCED) have been met in the organization. From Fig 5.2.3a it is seen that BASIC needs fulfillment has a lower score. Any organization should make sure that the BASIC needs of its employees are met before proceeding to the next level.
If BASIC needs are left unmet or unfulfilled, employees could become dissatisfied with the job and the company. Looking at the BASIC needs more in detail as shown in Fig A2i and ii (refer Annexure), it has been found that sales managers who had served for more than 3 years with the company felt that there were not enough resources and also not enough incentives for achieving sales targets.
ii.
SATISFACTION:
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On analysis of the responses received from the sales managers, it was found that sales managers are not satisfied first with pay and benefits and second, with training. From Fig.A3i (refer Annexure), sales managers across all levels of work experience are unanimously dissatisfied with the companys lack of arrangement for any relaxation activities. From Fig.A3ii (refer Annexure), it is seen that though training was given, the effectiveness of such training has to be improved (only 69% felt comfortable doing their job after such training). Table A2 (refer Annexure) indicates that the willingness to stay with the organization reduces with the level of work experience.
iii.
EFFECTIVENESS: From Fig 5.2.3c, it is evident that sales managers are performing their jobs in ways
that meet their own expectations, that of the branch manager and that of the organization.
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From the analysis, the major problem areas have been identified. In the motivation factor, sales managers felt that they were not enough resources and information such as brochures for selling policies to customers and there were not enough incentives for achieving sales targets. Suggestions for the short term would be to have regular presentations and activities on motivation to make sales managers feel that their work is valued by the organization. Since majority of the unfavorable responses were obtained from sales managers who had served the company for more than three years, such motivational activities have to be targeted on them.
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In the satisfaction factor, sales managers felt that there were no relaxation activities to reduce the stress of their job. Suggestions for the short term would be to have some games and activities that would foster team spirit (indoor games like cards and carom) and kindle creativity. For the long term, the organization could organize a short annual trip for the sales managers and their families to a nearby tourist spot. Such measures would keep them satisfied and keep them motivated to work whole-heartedly. Sales managers also felt that though induction training was given, the effectiveness of such training had to be improved as it was monotonous and scheduled over a short period. Sales managers felt that they did not have the time to grasp the content of the training. Training should be given on a regular basis about new products and updates in the policies. Apart from this training on communication skills, presentation skills and personal development have to be organized to enable sales managers to grow with the organization. Thus, in order to have a more productive and loyal workforce, the organization should make sure that its employees work with passion and remain engaged.
ANNEXURE
Table A1: Questionnaire to measure employee engagement at the sales manager level
Gender: Age:
I have information and other resources necessary to sell policies to customers I talk to my branch manager EVERYDAY There are people at work who care about me as a person I felt comfortable doing my work after my
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first few months here I know the sales targets of my company I ALWAYS get incentives if I meet sales targets My branch manager treats everyone equally I have told my branch manager the difficulties/pressures I face in work I know what are the career opportunities available for me within my company My branch manager appreciates me when I meet sales targets I am able to come to work DAILY on time I would recommend my company to a friend/ relative who is looking for a job I get angry if somebody disturbs me when I am doing my job When I joined this company, I was given guidance on how to do my job My coworkers and I mostly talk about our job and what needs to be done to be more effective Even if another company offers me a better job, I will stay with my company My branch manager has taken steps to resolve problems that I face I USUALLY make my own decisions while doing my work I feel I have performed my job to the best of my abilities, here My branch manager recognizes top
performers I am able to meet sales targets on time I am willing to work overtime I understand how my work contributes to the overall mission and goals of the
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24. 25.
organization My branch manager is approachable I have gone on one or more leisure trips/outings with people from work, in the past year I want to contribute to my organizations
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success by working more Choose the item that would most improve your job satisfaction. (Select any THREE and give the order of preference 1-high, 2-medium, 3-low) a)More challenging work b) More incentives c)Greater clarity about my own work preferences and career goals d) Greater clarity about what the e) More rewards/ recognitions f) More say in how my work gets done g)A better relationship with my manager h)Career development
Table A2: Correlation between willingness to stay with the organization and level of work experience
Staying * Experience Crosstabulation Experience 1 Staying Disagree Count % within Experience Neutral Count % within Experience Agree Count % within Experience Strongly agree Total Count % within Experience Count % within Experience 1 9.1% 0 .0% 3 27.3% 7 63.6% 11 2 0 .0% 2 18.2% 2 18.2% 7 63.6% 11 3 0 .0% 3 20.0% 1 6.7% 11 73.3% 15 4 1 5.6% 2 11.1% 3 16.7% 12 66.7% 18 5 1 5.9% 1 5.9% 3 17.6% 12 70.6% 17 6 1 5.9% 2 11.8% 3 17.6% 11 7 0 .0% 0 .0% 0 .0% 1 Total 4 4.4% 10 11.1% 15 16.7% 61 67.8% 90 100.0%
64.7% 100.0% 17 1
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Figure A2i I have information and other resources necessary to sell policies to customers
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GLOSSARY
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Insurance Regulatory Development Authority Net Asset Value Unit Linked Insurance Products Customer Focus Unit Interactive Voice Response Life Insurance Corporation Bajaj FinServ
BIBLIOGRAPHY
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2. Employee Engagement Strategy A strategy of analysis to move from employee satisfaction to engagement, Accord Management Systems (2004).
3. Tracy M. Maylett, Juan M. Riboldi, The three essential components of Employee
Working Paper Series (2005). 5. Richard S. Wellins, Paul Bernthal, Mark Phelps, Employee Engagement - the key to realizing competitive advantage, Development Dimensions International (2004).
6. Nancy R. Lockwood, Leveraging Employee Engagement for Competitive
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