PERFORMANCE APPRAISAL

Introduction: Appraisal of performance is widely used in society. Parents evaluate their children, Teachers evaluate their students and employers evaluate their employees. However formal evolution of employees is believed to have been adopted for the first time during the First World War. At the instance of Walter Oil! Scott, the US army adopted the" man to man" rating system for evaluating military personnel. Concept:

Performance appraisal is the systematic, periodic and an impartial rating of an employee's excellence in matters pertaining to his present job and his potential for a better job. Merit rating measures what the person is (traits) whereas performance appraisal measures what the person does (performance).The main characteristic of performance appraisal are: 1. Performance appraisal is a process of obtaining, analyzing and recording Information about employees. It is systematic examination of an employee's strengths and weaknesses in terms of job It is a scientific or objective study.

3.

4.

It is a continuous process.

5.

It is for making correct decisions on employees.

1

Objectives:

Appraisal of employees serves several useful purposes:

1.

Compensation decisions: It can serve as a basis for a pay raises.

2.

Promotion decisions: It can serve as a useful basis for job change or promotion.

3.

Training and development programme: It can serve as a guide for formulating a suitable training and development programme.

4.

Feed back: Performance appraisal enables the employees to know how well he is doing on the job.

5.

Personal development: Performance appraisal can hefp reveal the causes of good and poor employee performance.

PERFORMANCE APPRAISAL PROCESS

ESTABLISH PERFORMANCE STANDARDS COMMUNIVATE THE STANDARDS MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH STTANDARDS

TALKING CORRECTIVE ACTION

DISCUSS THE APPRAISAL

FINAL OUTCOMES

METHOD

OF

PERFORMANCE

APPRAISAL

Performance Appraisal

Traditional Methods

Modern Methods

1. 2 3 4 5. 6. 7 8 9. 10

Confidential Report Free from or essay Straight Ranking Paired Comparisons Forced Distributions Graphic Rating Scales Checklist method Critical Incidents Group Appraisal Field Review.

1. Assessment Centre 2. Human Resource Accounting 3 Behaviorally Anchored rating Scales 4. Appraisal through MBO

Problems

with

Performance Appraisal:

There are some problems inherent in performance appraisal .Now we are going to discuss these problems one by one they are: 1. Judgment errors: Biases and judgment errors of various kinds may spoil the whole system bias here refers to inaccurate distortion of measurement like: a) First impression: it is not always correct. b) Halo: The halo errors occurs when one aspect of the subordinates performance effect the raters evaluation of other performance dimensions. Horn effect: The rater's bias is in other direction, where one negative quality of the employee is being rated harshly. Leniency: Depending on raters own mental makeup at the time of appraisal rater may be rated very strictly or very leniently. Central tendency: In this appraiser rate all employees as average performers example, a professor, with a view to play it safe, might give a class grade nearly equal, regardless of the differences in individual performance. Stereotyping: In this a mental picture that an individual holds about a person because of that person's sex, age, religion, caste, etc. Regency effect: In this case the rater gives greater weight age to recent occurrences than earlier performance, which is not correct.

c) d) e)

f) g)

2. Poor appraisal forms:

Appraisal may influence by the following factors relating to the forms that are used by the raters: a) The rating scale may be quite vague and unclear. b) The rating form may ignore important aspects of job performance. c) The rating form may contain additional, relevant performance dimensions.

d)

The forms may be too long and complex.

3. Lack of ratter preparedness:

The rater may not be adequately trained to carry out performance management activities The rates may not have sufficient time to carry out appraisals systematically and conduct feed back sessions. 4. Ineffective organizational policies and practices:

Sometimes, low ratings given by raters are viewed negatively by management as a sign of failure on the part of rater as an indication of employee discontent.

PREFACE

Curriculum for management studies includes training activities like group Discussions, Problem solving, case studies projects Industrial tours, role play exercise etc. aimed to impart practical training and develop pragmatic thinking. On job training is one of these activities designed to ensure that students are well acquainted to all legal functions when step out of the institute. It is said that without practice, theory is meaningless. Hence practical training had been made an integral part of the management education in India. The training gives an excellent opportunity to a student to apply and prove his or her ability, intellect, knowledge, belief, agreement, judgment, reasoning by giving a solution to the assigned problem which reflects his caliber. It provides and around knowledge about the organization with specialization in assigned topic. Practical training gives an opportunity to work with highly experienced people in their field which makes the student bold and smart. I had the privilege to service such training in BAJAJ ALIJANZ INSURANCE COMPANY which is a premier International baskingcorporation which provided congenial atmosphere for learning. The language used in this report has been kept simple and comprehensive by using the simple words in place of technical words for as possible.

ORGANIZATIONAL INSIGHT

Joint venture between Allianz SE and Bajaj Finserv (formerly known as Baja Auto Ltd.) Incorporated on 12th March 2001

Received

Certificate

of Registration (No 116) from Insurance

Regulatory Development Authority of India on 23rd August 2001.

COMPANY HISTORY Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE. As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 180 crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last four years. The profit after tax was Rs. 121 crores, 27% higher than the previous year.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

Vision

To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry To be the number one insurer for creating shareholder value

Mission As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. A Partnership Based on Synergy Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance.

Our Achievements Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's Investors Service, for Claims Paying ability. This rating indicates highest claims paying ability and a fundamentally strong position. Bajaj Allianz General Insurance has received the prestigious "Business Leader in General Insurance", award by NDTV Profit Business Leadership Awards 2008. The
10

company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.

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 will strive 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. Bajaj Autos

Bajaj is present in over 50 countries all over the globe

11

Dominant presence in Africa, Latin America and South Asia with increasing market share every year

Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya.

891,002 units exported in 2009-10, an increase of over 15 % over the previous year

Total motorcycle exports of 726,115 in 2009-10, growth of 15% over 2008-09 Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported in 2009-10, a rise of 19% over 2008-09

12

GWP of 3811 Millon Euros.

Net Income of 1941 Million Euros.

Total Assets of 584, 045 Million Euros. Shareholders equity of 42, 309 Million Euros. Assets under management 87, 442 Million Euros. 50% of global business from Life Insurance. Established in 1890, 120 yrs of Insurance expertise. More than 70 then 70 countries, 1,53,203 employees world wide, 75 million customers worldwide.

Insurance to almost half of the Fortune 500 cos.

22nd largest corporation in the world.

The solvency ratio of Allianzx Group is 168 % on 4 March 2010. One of the largest 2 & 3 wheeler manufacturer in the world

13

21 Million + vehicles on the roads across the globe

Posted a net profit of Rs.6963.00 Million for the year ended September 31, 2009.

Total income was Rs. 5335938.00 million for the year ended September 31, 2009.

10

BAJAJ FINSERV

An Associate Company of Bajaj Auto Ltd. Incorporated on 30th April 2007 Currently engaged in life insurance, general insurance, consumer finance business, distribution of financial products and services and wind energy generation. Net Profit as on 31.03.2010 - Rs. 550 crores. Capital Base as on 31.03.2010 Rs. 7234 lakhs.

11

ALLIANZ SE

Established in 1890, Allianz SE has over experience.

120 yrs of Insurance

One of the worlds Largest Insurance co. by revenue (2009) Euro 97.4 Million)

3rd largest Assets Under Management (AUM) and largest amongst Insurance cos. AUM of Euro 1,202 Million.

12

ALLIANZ SE....2

The group serves approximately 75 million customers in 70 countries. Approximately 1,52,000 employees worldwide.

Provides insurance to almost half of the fortune 500 cos..

13

OPERATIOSN @ BAJAJ ALLANZ.....2

Customer Care Centre

Well networked Customer care centers (CCCs) with state of Art IT systems.

Highest standard of process in the industry.

customers service and simplified claims

Websites for all kinds of assistance and information on products and services . Online buying and renewals. Toll free number 1700 233 7272

14

OPERATIONS @ BAJA ALLIANZ

Decentralised operations at Hubs for quicker response

Nationwide network of 1100 + branches. Specialized business Channels. - Bancassurance - Rural - Group Business Dedicated products teams for

Pension

Health

15

AGENCY SALES MODEL ZONAL OFFICE Regional Office Regional Office Regional Office

Divisional Office

Divisional Offices

Divisional Offices.

Branch Office

Branch Offices

Branch Offices

16

STURCTURES The Company

Distribution Channels

Agency

Business Group

Alternate

Banc assurance

Direct Marketing

17

FINANCIAL PERFORMANCE

GROWTH

Fiscal year

No. of policies sold in FY

CWP in FY

2001-02 (6 month) 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

21,376 1,15,965 1,86,443 2,88,189 7,81,685 20,79,217 37,44,742 25,90,765 22,30,000

Rs. 7 Cr. Rs. 69 Cr. Rs.211 Cr. Rs.1002 Cr. Rs.3134 Cr. Rs.4269 Cr. Rs. 9725 Cr. Rs.10,625 Cr. Rs. 11,420 Cr.

As on 31st March 2010 Bajaj Allianz

Solvency margin of greater than 268% (Indicating great safety in its operations)

Assets under Management : Rs.33,422 plus Cr. (Which in an Increase of 95%)

Capital ase : Rs. 1211

20

Bajaj Allianz Top Management Team

Mr. Kamesh Goyal Mr. V Philip Mr. ECJ Augustine Mr. Niraj Kumar Mr. Akshay Mehrotra

Chief Executive Officer Chief Operating Officer Head-Sales & Strategic Intiatives Head- Alternate channel Head- Marekting & Corporate Communication

Mr. Rajesh Vishwanathan Mr. Anil Kumar Singh Mr. Samir Bakshi Mr. Sashi Krishnan Mr. A S Narayanan Mr. Jaydeep Chaure Mr. V Sriram Mr. Yogesh Gupta

Chief Financial Officer Appointed Actuary Company Secretary and Head Legal & Compliance Chief Investment Officer Head Bancassurance, Group & NRI Business Head - Human Resources Head - Internal Audit Head Business Procurement

21

BOARD MEMBERS

1.

Mr. Rahul Bajaj - Chairman of the Company, an Honours Graduate in Economics & Law and MBA from Harvard Business School. Mr. Rahul Bajaj is recognized as one of the most successful business leaders of India, heads the Bajaj Group of Companies. He is the Chairman of the group's flagship company/ Bajaj Auto Limited. Dr. Werner Zedelius - Director of the Company, has a doctorate in Law and is a member on the Board of Management of Allianz SE. Mr. Niraj Bajaj Director of the Company, MBA from Harvard Business School, Boston U.S.A. He is the Chairman and Managing Director of Mukand Limited. Mr. Sanjiv Bajaj - Director of the Company, is a Mechanical Engineer from Pune University. He obtained a Masters Degree in Manufacturing Systems from the University of Warwick and an MBA degree from Harvard Business School. He is Managing Director of Bajaj Finserv Limited and also an Executive Director -Bajaj Auto Ltd. Mr. Heinz Dollberg - Director of the Company, has a University Degree of Law and is Executive Vice President - Asia Pacific Division of Allianz SE. Mr. Ranjit Gupta - Director of the Company, is MIME, AMIPE & FIEE and is President - Insurance of Bajaj Finserv Ltd. Mr V. Philip - Managing Director & Chief Executive Officer of the Company. Mr. Kamesh Goyal has done M.B.A. from the Faculty

2. 3.

4.

5.

6. 7.

22

of Management Studies, Delhi University, has a Graduate degree in Law and also Associate membership of the Insurance Institute of India. 8. Mr. Suraj Lal Mehta - Director of the Company, has Honours in Economics. Mr. Suraj Mehta is former CEO of Nabil Bank. 9. Mr. Sanjay Asher - Director of the Company, is Chartered Accountant and Graduate in Law and is a Partner in M/s Crawford Bayley & Co, Mumbai. Mr. S. H. Khan - Director of the Company, has a Masters Degree in Commerce and is the Former Chairman and Managing Director of IDBI. Mr. Manu Tandon - Director of the Company, is a Chartered Accountant and former Managing Director of Elantas Beck India Limited.

10. 11.

23

Bajaj Allianz Life Insurance Co. Ltd

BALIC is a joint venture between Allianz SE of Germany and India based Bajaj Finserv Limited. BALIC came into being on 12 th March 2001. It is characterized by global presence with a local focus and is driven by customer orientation to establish high earning potential and financial strength. The company received IRDA (Insurance Regulatory & Development Authority) Certificate of Registration (R3) No. 116 on 3rd August 2001 to conduct Life Insurance Business in India. National Network

BALIC has a Pan India presence with The Head Office located at Pune 8 Zonal Offices located at Delhi, Varanasi, Patna, Kolkotta, Indore, Pune, Banglore & Chennai 700+ branches 6 hubs - Pune, Chandigarh, Bhilawara, Kolkotta, Salem & Coimbatore Over 10,000 Sales Managers Over 3,00,000 Insurance Consultants More than 10 Bancassurance partners across country Strong alternate channel with about 1900+ Franchisees, over

250 corporate agents, more than 35 brokers, and 6 co op banks Over 80 Direct Marketing Branches operating nationwide

24

VISION AND CULTURE

Vision

"To be the BEST Life Insurance Company in India To Buy From, Work For & Invest In"

Culture (5) Baiai Allianz Bajaj Allianz will be:

Be a winning team. Have a passion for excellence and hate bureaucracy. Be empowered, have the confidence to take decisions quickly and be accountable. Be driven to achieve results, to deliver. Be professional and socially committed. Be open to ideas, sharing, transparent & trusting Focus everything we do on our customers. Make BALIC a "great place to work" Have a sense of humor

25

The Baiai Allianz Way

Invest in people - Pay / develop / career planning Dominate your market - be decisive / communicate clear goals Never sit still - change continually / revolutionize Think service; service; service - continuous improvement Learn and lead - be prepared to listen Tell the facts as they are - clear communication Kill bureaucracy - boundary less / ideas not management layers / informality / speed Manage the business like a corner shop - customer satisfaction / employee satisfaction / cash flow

26

INTERNAL GRADING STRUCUTRE

GRADE L5 L4 L3 L2 L1

DESCRIPTION L48 L3A L3B L2 A L 2B L1A L1B Department Heads/ AVPs Sr. Managers/ AVPs Managers/Supervisory Rles Executives Customers Support Exectuvies

27

HR GUIDELINES

Formalities to be completed within first 15 days of joining HR4U Portal HR Catalyst (HR I Track) Salary Processing Formalities Service Conditions Period of Probation Salary and Attendance related facts Salary Components Important Policies Provident Fund Employees Benefits Policies for Resignation/ Termination Company Expectations from You Performance Management Employee Development

28

FORMALITIES TO BE COMPLETED WITHIN FIRST 15 DAYS OF JOINING ACTIVITIES The following in the JIR need to be filled Joining Checklist PF Nomination and Declaration Form Form 13 for PF transfer, available on HR4U (If Employee wishes to transfer his PF from previous Co. to BALIC) Gratuity Nomination Form Group Life Insurance Form Employee ID Card Format Confidentiality Form

ACTIVITIES JIR (To be filled on 1st Day of joining and submitted to Reporting Manager/ Business HR)

Other Formalities (To be submitted to BHR)

Submit a Medical Certificate Submit the following educational certificates (Certified Copy) SSC Mark sheet & School Leaving

Certificate HSC Mark sheet & Certificate Graduation Mark sheet & Certificate Post Graduation Mark sheet & Certificate (If Applicable) Submit the following Previous Employment Proofs Previous employer's Salary Slip 30

Copy) Submit 3 passport size and 1 card size photographs (Colored) Fill the Letter of Authorization Fill the Reference Check Information Sheet Submit Investment proofs within 15 days of DOJ Path for investment Declaration on HR4U IS PAN and Bank Details (Salary will be withheld if this is not updated) Submit PAN Details within 90 days after DOJ Submit Bank Details within 45 days after DOJ HR4U Upload details on HR4U Activate the employee code by logging on to http://hris.balic.in/hr4u/ Change password after first login

Investment Proofs

Performance Management

Make sure that the Reporting Authority is defined (In case it is not uploaded/changed, update BHR on the same) The Reviewer needs to be defined Upload your targets on HR4U within 15 days of Joining

ESIC form

Fill the ESIC form ancLprovide 1 Passport size & 2 I-card size color photographs (Applicable to those drawing salary less than Rs. 10,000) completely in addition to details in JIR

Medicare

Upload the family details and the Medicare 31

Amount within 10 days The same can be done through the following link: For Family Details: HR4U>My Profile>Personal, details> Family details>Add details For Medicare Details: HR4U> Medicare>Medicare Details

32

HR4U- HR Portal HR4U is a HR portal & acts as a link between the employee & the Human Resource Function. It is an information portal, which helps employees to know about the HR activities in the company. It facilitates Leaves, Mediclaim, IT Declaration, Performance Appraisal etc HR4U Address: http://hris.balic.in/hr4u/ HR4U Login All employees are provided with HR4U login & have his / her personal details in their ID. HR4U ID is created after the completion of joining formalities & creation of Employee Code. The TAT for the same is three days after generation of employee code, ID details are provided to local HR representatives on daily basis. Username for HR4U login is the "employee code" of the employee & default password is kept as "password" for the first login. Employee needs to change his / her password with the first login. HR4U Features My Space My Profile Salary Leaves Attendance Performance Management Mediclaim HR Forms & Formats Alerts Other Features

33

SERVICE CONDITIONS

Office Timings

Monday to Friday: Saturday:

9 am to 6 pm 9 am to 1 pm OR

Alternate Saturday: Lunch Timings:

9 am to 1 pm 1 pm to 2 pm

Holidays Weekly Offs: Paid Holidays: Earned Leaves: Sick Leaves: Attendance Sunday 10 per annum 21 per annum 5 per annum

1.

Period of Attendance considered for payroll process:- From 19th of Last month to 18th of Current month.

2. 3.

Salary will be processed on the basis of HR4U attendance only. To register your daily attendance, please ensure to log-in HR4U on daily basis. 34

4.

Also ensure to regularize your absent days / Leave Days before 18th of every month to avoid the salary deduction.

35

5.

In case of difficulty in login HR4U, please contact to your Business HR/HR Coordinators.

6.

You may visit HR4U->HR Induction ->HR4U Induction for HR4U guidelines.

Attendance of New Joinee

In the first month, New Joinee will get salary from 1st to 18th of the month along with arrears from his Date of Joining (if Date of Joining is prior to 1st of that month).

36

PAN No. & Bank Account Details Submission

1.

We are considering BANK & PAN Details updated only on HR4U.

Please ensure to update correct PAN No. & Bank details on HR4U. We will consider it for salary payout. Path for updation of PAN/Bank details is :HR4U ->My Profile ->Corporate Details ->Corporate Details -> Other 2. 3. In case of change in bank details, please do inform to Business HRs with the scan copy of cancelled cheque by separate mail. If you want to open new bank account, you may open Salary Account in following banks a) Standard Chartered Bank b) ICICI Bank c) Axis Bank For HO employees Standard Chartered Bank is compulsory 4. Ensure that the name provided to company, should be match with Bank record. 5. 6. Salary will be put on hold if PAN is not submitted within 90 days or if Bank Account no. is not submitted within 45 days of Date of Joining. Salary hold for non submission of PAN & Bank, will be released by 22nd of every month, if details submitted before 15th.

For New Joinees:- If bank account is not updated on HR4U, First month salary will be paid by cheque. Salary cheques will be distributed through regional HR by 7th of every month.

37

Probation Period

You shall be on Probation for a period of Six months; the period of probation may be extended further if necessary in writing. You shall be deemed to be on probation till you are issued a written order of Confirmation. The decision of the Company with regard to the extension of the probation shall be final and binding. Your confirmation in the service of the Company after the probation period will depend on your performance and conduct being as per the norms of the Company. The decision of the Company with regards to the extension of probation, confirmation or otherwise shall be final and binding. Performance Management

Performance Appraisal is a process in which you will receive feedback on your performance from your immediate Supervisors / Managers. The process helps you to recognizeyour strengths and areas of improvement, to utilize your talents and to overcome recognized shortcomings. The intention is to help you improve your performance. Regular performance appraisal and development interviews are conducted twice a year. The appraisal periods are April - September October - March

38

In order to be appraised, a Team Member needs to have completed a minimum of 6 months service with the Company. 1. Appraisals may also be conducted on the following occasions: Significant change of assignment, area of activity and / or transfer to - Another business unit o Change of supervisor, or - Upon conclusion of the probation period. 2. Our performance culture involves o o o Setting of targets or Key Results Areas (KRA's) at the beginning of the Appraisal period Monitoring performance o

Providing feedback and redirecting action plan if required and at the end of the appraisal period appraising individual contributions against the predetermined objectives or KRA's. Results are then communicated and rewarded in relation to objectives achieved.

39

BRAVO- BALIC Awards for Excellence

Objectives:

To recognize and build a strong culture of Excellence beyond Performance.

To acknowledge & recognize accomplishments by our team members. To establish a transparent and effective reward mechanism.

Scope and Eligibility: Target Group: Non Sales employees in LI and L2 grades who have completed 1 year as on 31ST December. This scheme does not extend to Sales staff.

Eligibility Criteria:

Tenure with the Company: Employees completing 1 year as on 31st December

Performance Ratings: Minimum Final Rating of A or B i.e. (> = 100% ) in the last 2 appraisals cycles (including Mid year) i.e. April and October

Note: Nominator - Reporting Manager of the team member/s who qualify the above laid down criteria's. Nominee - All Non Sales employees in LI and L2 grades who qualify the above laid down criteria's. 40

Nomination Parameters The nominator would evaluate/ rate each nominee on the following 4 Potential Parameters: Ambition & Drive Ability and Willingness to Learn Customer Orientation People Orientation

STAR Form (Open Ended Question) The nominator should describe a "Critical Incident" for each nominee as per the "STAR" format. Situation Task

40

Action Result

For each of the 4 Potential Parameters mentioned earlier, the nominator needs to describe a recent past incident ( preferably within a year) wherein he/she defines the Situation at hand, the Task required, the Action taken by the nominee and the Results derived by virtue of which he/she is nominating the employee for the award. Mandatorily, a minimum of 2 'Critical Incident' should be filled for every nominee by the nominator as per the STAR Format. The critical incident should highlight the Potential Parameters wherever displayed in these critical incidence. Between the Two Critical Incident all 4 Potential parameters should be covered.

41

TALENT MANAGEMENT PROGRAM (TMP)

The Talent Management Program (TMP) provides a unique platform that assesses the Performance and Potential of an employee and comes out with a balanced view .of an individuals' abilities and potential thereby enabling to identify key talent and nurture it. It helps an organization to develop a wide map of talent and gives a better understanding of its people and their abilities. Objectives

1. 2. 3. 4... 5. 6. 7.

To provide a holistic view of an individual: Current and Future To help identify and prepare future leadership talent To provide Key Resources with recognition opportunities To facilitate Retention of High Performers To help Identify and groom potential successors To facilitate designing of Personal Development Plans To complement the Rewards system and growth

Performance Appraisal

1. Performance Appraisal is done as per the following:

42

Each employee would be assessed on his/her Performance and Potential abilities. Category A Description Exceeds expectations of the current assignment consistently B Meets position expectations of the consistently occasionally exceeds it current and 100% Rating Range >100%

Meets

most expectations of the current

90% to 99%

assignment but still requires follow up at times ; D Does not meet complete <90%

expectations of the assignment

B. Potential is assessed on the following 4 areas: 1. Ambition and Drive: Enthusiasm, initiative, positive spirit and attitude, energy and hunger to push forward and improvise, result orientation, strategic vision, energy to motivate others, setting high standards for self etc. Ability and Willingness to Learn: Problem solving and analytical skills, out of the box thinking, short learning curve, seeking new information & learning experiences, openness and flexibility to learn new things, willingness to adapt to new surroundings & relocate, etc. Customer Orientation: Ability to listen to (internal/external) customers and have the attitude to do the best possible to deliver 4. People Orientation: Ability to develop good relationships with people to collaborate and work more effectively. Ability to develop

2.

3.

43

people down the line, gender sensitivity, ethics and integrity, effectiveness in one on one and group interactions Each of the potential areas is rated on the following scale:

Scale Best in Class

Description The person proactively grabbed every

Rating 4

opportunity that presented itself and was found outstanding in this area. The person can be compared to the best in the industry and sets benchmarks.

High

Whenever given

an

opportunity,

the

person

always met expectations. Satisfactory Given an opportunity, the person often met 2

expectations but needs to develop this area further. Needs Even on receiving opportunities, the this person area. 1 -

Improvement displayed poor ability in Needs significant improvement.

The total score can then be looked up in the Potential Assessment table to arrive at the final Potential Rating:

44

45

46

IMPORTANT POLICIES

Leave

All Team Members are eligible for following leaves :-

Earned Leave :i) One day leave will be credited to employee after completion of 12 working days. Employee can get maximum 21 days leave in a year. EL Balance can be carry forward in next year and it will be accumulated up to 65 days Max. Leaves more than 65 days will be lapsed. We do not have procedure to en-cash available Leave balance during tenure of employment. It will be paid to employee on exit i.e. with Full & Final Settlement.

ii) iii) iv)

Sick Leave:i) ii) Employee is entitled for Max.5 days SL in a year. In case of New Joinees SL will be credited on proportionate basis, iii) SL will be carry forward and can be accumulated till 10 days, iv) Employee can avail maximum leaves accumulated till date. There is no encashment on SL.

v)

Maternity Leave :-

Female employee are entitled for 90 days ML. A women shall be entitled to maternity benefit only, if she has actually worked in an establishment of the employer for a period of not less then 80 days in the 12 months immediately proceeding the date of her expected delivery. 47

Weekly-offs and paid holidays are not taken in to consideration while calculating Leaves Availed. Employees need to get leaves sectioned on HR4U before going for leave. Visiting Cards & Employee Identity Cards

All Team members are eligible for visiting cards. After a member joins, the visiting card requisition must be filled up in the prescribed template and given to Admin for printing. Employee ID Card Format is also available with ADMIN. After getting the Emp code, this form needs to be filled up and the Emp ID card is made available in the next 2 weeks. Advance Against Salary

Team members shifting from an outside location are eligible to claim Advance for house deposit. This amount will be recovered as per the term of the Leave and License agreement subject to a maximum of 36 installments (depending upon the Lease Agreement signed). Submission of a copy of the Leave and License agreement is a pre requisite to avail of this benefit. Brokerage Reimbursement

The company will pay the House Brokerage fees for Team Members. This is a one time payment and subject to a maximum of one and a half months' rental.

48

Provident Fund

All Team Members are eligible for Provident Fund as per statutory provision. The Team Member contributes 12% of his / her basic salary, every month, to this fund, and the company makes an equivalent contribution. The Provident Fund is regulated by the RPFC, Pune. For more details, you can log onto http://epfindia.nic.in/ Gratuity

All team members are eligible for gratuity as per provisions under the Payment of Gratuity act, 1972 (@ 15 days last drawn basic salary for every completed year of service). Gratuity payable to the limit of 10 lacs is exempted from tax deduction Life Insurance

All Team Members are covered for a sum assured of 60 times their monthly basic salary. This cover remains only as long as they remain in the service of the Company, subject to the minimum limit of Rs 5 lacs and the maximum of Rs 30 lacs. Employee Depository Linked Insurance (EDLI)

This is an additional Life Insurance Coverage extended on behalf of the company in lieu of Insurance covered under Employees Provident Fund Act 1952. This is to the maximum limit of 1.5 lacs, payable only incase of employee's death, to the legal heir. The premium for this policy is borne by the company.

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Medicare

All Team Members are eligible to join the Medicare Hospitalization policy entered into with Medicare Services Ltd. Please update your personal and family details through HR4U. HR4U> My Profile> Personal Profile> Family Details> Enter Family Details Employees have an option to select a Family Floater Cover for self, spouse, 2 children and parents for a floater amount of Rs.1,2, 3, 5, 7.5, 10,15 or 20 lacs. Enrollment into this scheme is done only through Hr4U. Incase an employee fails to do his enrollment within 10 days from the date of creation of his HR4U id, the company gives him default coverage of Rs. 3 Lacs for himself only. The coverage amount once selected or given by default cannot be changed during the policy period (1st September to 31st August). However, family members can be added at any time. There is a company subsidy of Rs.5,000/- towards Medicare premium. Any premium amount exceeding Rs.5,000/- is recovered from the employee's salary. This is a one-time deduction. Details are uploaded on Hr4U on the following path: Hr4U> Medicare> Medicare Details

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Personal Accident Policy

Under this policy, employees are covered for disability arising out of accidents. It compensates for the employee's loss of pay due to the disability. Death is not covered under this policy. The Capital Sum Insured (CSI) for Grade LI and L2 is Rs. 5 lacs while it is Rs. 7.5 lacs for grades L3 to L5. The Company pays the premium for this cover.

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PROVIDENT FUND

All Team Members are eligible for Provident Fund as per statutory provision. The Team Member contributes 12% of his / her basic salary, every month, to this fund, and the company makes an equivalent contribution. The Provident Fund is regulated by the RPFC, Pune. For more details, you can log onto http://epfindia.nic.in/ Process for Provident Fund Transfer and Withdrawal

PF Withdrawal: Employee can withdraw the PF Fund -

Ex- Employees: Employee has to fill the form No 19,10 C as per the sample form attached & submit it to BALIC after two months from the date of living on address given below. New Joiners: Employee has to fill the attached form no 19,10 C as per the sample form attached & submit it to his previous employer after two months from the date of living. Please forward filled PF withdrawal forms to Pune - HO on following address:HR Department Bajaj Allianz Life Insurance Co. Ltd. GE Plaza, Airport Road, Yerawada, Pune-411 006. These forms will be forwarded to the PF Office for settlement. Error free form on receipt by the PF Office, the amount will be credited in your

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account after three months if the Bank Account belongs to Pune, outside Pune the amount will be credited after four months.

Completed form (Sample) of Provident Fund- Transfer / Withdrawal and Pension Fund Withdrawal is attached as Annexure B on page no. 31.

Requirement: 1) 2) PAN card photocopy Cancelled Cheque or confirmation ofAccount, residential proof. Bank Bank Pass book Name, Bank Photocopy Address for and

3) 4) 5)

Please do not give bank details of your Salary bank account on Form No. 19 & 10-C. Please provide personal bank account details. Mention the Employee Number and the contact number on left hand corner of the Form. If you have completed three years by leaving service. Hence P.P. office requires following document affidavit on 100/- hundred rupees stamp paper duly notarized regarding non-receipt of payment & recovery (if excess payment made).

PF TRANSFER FORM NO. 13: Employee Can Transfer the PF Fund - New Joiner's: After Joining to organization employee can transfer the PF amount from previous organization to BALIC. Employee has to filled Form No.13 as per sample form attached.

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Transfer Form has to be filled up in original triplicate copy & submit it to present company mention the Employee Number and the contact number on left hand corner of the form on following address. HR Department Bajaj Allianz Life Insurance Co. Ltd. GE Plaza, Airport Road, Yerawada, Pune-411 006. Transfer process will take more than 5 months for transferring your PF amount to Present Company.

NOTE: Please communicate all your PF related queries to epf(o)balic.in Soft copy of Withdrawal/ Transfer form is available on HR4U > My Space >Exit Form (1)

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EMPLOYEE DEVELOPMENT

Bajaj Allianz believes in empowering its employees with knowledge. The company will provide you with the training required for effective performance at your work- Apart from on-the-job trainings, the company will ask you to participate in the required training programmes, as decided by the company. Broad category of trainings offered are: DISCOVER workshops: Programs to bridge skill gaps identified by the managers/ZMs/HODs will be held under broad category of Discover. Management Development Programmes - Special programmes conducted for the top performers in all grades Professional Development - Employees aree encouraged to acquire higher professional qualifications in their respective fields. Some of the programmes for which employees can qualify are: o III o Actuarial study scheme, o Audit Professional development scheme, o Certified Financial Advisor o LOMA Personal Development: Employees will be provided an opportunity to develop themselves through o E-Learning - Log on to site http://mvLearninQ.balic.in to access various developmental courses o E-MBA - To be launched

Annexure A attached along for details on Professional Development Initiatives on page No. 50.

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Advertising and Sales Promotion of Allianz Bajaj :

Premium codes on SMS Miss Confident Plan we are the sponsor contast 2009. Safes gS rks lc Mhxs - Kungfu pahawa 10 years celebration advertising camping. Super tax planner ( tax compaign) Marketing campaign - Retirement campaign. for the Miss Indian

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Divisional Head Mr. Balram Singh Gurjar

H.R. Head Mr. Rajendra Singh Sheteke

Branch Manager Mr. Prasant Gupta

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COMPETITIORS OF ALLIANZ BAJAJ

LIC SBI LIFE RELIANCE LIFE ICICI PRUDENTIAL HDFC LIFE INSURANCE COMPANY

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STRENGTH OF THE COMPANY

1. 2. 3.

Trust Solidatory Companionship and power.

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ALLIANZ SPONSOR 1 2. 3 Formula racing Soccer Golf (Rider cup)

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Bajaj Founder Company Allianz Founder Bajaj Head office and Allianz

Rahul Bajaj Germany Carl Thime Pune Munich

Bajaj Alianz is No.2nd in the private Life Insurance company. It has one thousand 7 offices in the world, two lakh four hundred sixty five offices and 6.1 million customers.

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BAJAJ FINSERV

Bajaj Auto Finance Ltd.

Bajaj Life Insurance Company

Bajaj General Insurance Company

Bajaj Finserv Strength 1. 2. Diverse pool of managerial skill Operational efficiencies and similar customer base.

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SUGGESTIONS Some suggestions are as follows : 1. 2. 3 4. Each and every individual should be provided with his or her feedback with a broader perspective. There should be certain parameters through which the judgment and analyses of the individual personality can be measured. To make the potential appriasisal programme company should be include some more steps. For an effective overall system the analysis of training needs post training outcome should be done at regular interactions.