A PROJECT REPORT ON

COMPENSATION MANAGEMENT OF ICICI

BANK
Submitted in partial fulfillment of the
Requirements
FOR
BACHELOR OF MANAGEMENT STUDIES
(2016-2017)
BY

Under the guidance of

Prof. ABDUL RASHID
UNIVERSITY OF MUMBAI

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DECLARATION
ANSARI MUFID AHMED ABDUL QUYYUM hereby declare that the project entitled
COMPENSATION MANAGEMENT OF ICICI BANK under guidance of PROF.
ABDUL RASHID submitted in partial fulfilment of the requirements for the awards of
the degree of BACHELOR OF MANAGEMENT STUDIES (B.M.S) TO MUMBAI
UNIVERSITY in my original work.

SIGNATURE

DATE

PLACE

ACKNOWLEDGEMENT
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I take this opportunity and record my thanks and gratitude to A.E KALSEKAR DEGREE
COLLEGE semester 5th of B.M.S course in the college. Further, I also acknowledge my
sincere and special thanks and gratitude to my project guide prof. ABDUL RASHID SIR,
and project coordinator, vice principal & professor without continuous guidance and
encouragement it would not have been possible for me to complete this project work.
I express my thanks to all my parents & friend with whom I have debates and discussions
on the subject which also helped to have better understanding and clarity.

Index
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Sr. No.

Contents

Page no.

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1.

HUMAN RESOURCE MANAGEMENT

2.
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8

COMPENSATION MANAGEMENT
Meaning and Definition
Needs of compensation management
Objective of compensation management
Traditional changes of compensation system
Approaches of compensation management
Components of compensation management
Job analysis
Types of compensation management

3
3.1

RESEARCH METHODOLOGY
Data analysis and Interpretation

4
4.1
4.2
4.3
4.4

INDUSTRY PROFILE
A brief history of the insurance
Insurance sector reforms
Foreign direct investment ( FDI ) Policy in insurance sector
Insurance regulatory and development authority

5
5.1
5.2
5.3
5.4
5.5
6

COMPANY PROFILE
ICICI Bank
Prudential policy
The joint venture
Awards and recognition
ICICI Bank at the present scenario
TODAYS MODERN COMPENSATION SYSTEM

6.1
7

Facilities provided to the ICICI PRUDENTIAL Retired

Offices/Employees
FINDING OF PROJECT

SUGGESTION

CONCLUSION

10

BIBLIOGRAPHY

INTRODUCTION
Human Resource Management (HRM) is a relatively new approach to managing people
in any organization. People are considered the key resource in this approach. It is
concerned with the people dimension in management of an organization. Since an
organization is a body of people, their acquisition, development of skills, motivation for
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higher levels of attainments, as well as ensuring maintenance of their level of

commitment are all significant activities. These activities fall in the domain of HRM.
Human Resource Management is a process, which consists of four main activities,
namely acquisition, development, motivation, as well as maintenance of human
resources.

Scott, Clothier and Spiegel have defined Human Resource Management as that branch of
management which is responsible on a staff basis for concentrating on those aspects of
operations which are primarily concerned with the relationship of management to
employees and employers to employees and with the development of the individual and
the group.

Human Resource Management is responsible for maintaining good human relations in the
organization. It is also concerned with development of individuals and achieving
integration of goals of the organization and those of the individuals.

Northolt considers human resource management as an extension of general management,

that of prompting and stimulating every employee to make his fullest contribution to the
purpose of a business. Human resource management is not something that could be
separated from the basic managerial function. It is a major component of the broader
managerial function.

Human resource management is the planning, organizing, directing and controlling of

the procurement, development, resources to the end that individual and societal
objectives are accomplished
---Edwin B. Flippo

2.COMPENSATION

Compensation refers to all forms of financial returns, service and benefits that employees
receive as part of an employment relationship.
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2.1

COMPENSATION MANAGEMENT

Compensation Management aims at designing a cost- effective pay structure that will
attract, motivate and retain competent employees
---D.Robbins
Reward management is about development,
communication and evaluation of reward process

implementation,

maintenance,

---M. Armstrong and Helen Murlis

Human Resource is the most vital resource for any organization. It is responsible for each
and every decision taken, each and every work done and each and every result.
Employees should be managed properly and motivated by providing best remuneration
and compensation as per the industry standards. The lucrative compensation will also
serve the need for attracting and retaining the best employees. Compensation is the
remuneration received by an employee in return for his/her contribution to the
organization. It is an organized practice that involves balancing the work-employee
relation by providing monetary and non-monetary benefits to employees.

Compensation and Reward system plays vital role in a business organization. Since,
among four Ms., i.e. Men, Material, Machine and Money, Men has been most important
factor, it is impossible to imagine a business process without Men. Every factor
contributes to the process of production/business. It expects return from the business
process such as rent is the return expected by the landlord, capitalist expects interest and
organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the
process.

Labour plays vital role in bringing about the process of production/business in motion.
The other factors being human, has expectations, emotions, ambitions and egos.

Labour therefore expects to have fair share in the business/production process. Therefore
a fair compensation system is a must for every business organization. The fair
compensation system will help in the following an ideal compensation system will have
positive impact on the efficiency and results produced by employees. It will encourage
the employees to perform better and achieve the standards fixed. It will enhance the
process of job evaluation. It will also help in setting up an ideal job evaluation and the set
standards would be more realistic and achievable. Such a system should be well defined
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and uniform. It will be apply to all the levels of the organization as a general system. The
system should be simple and flexible so that every employee would be able to compute
his own compensation receivable. It should be easy to implement, should not result in
exploitation of workers.

It will raise the morale, efficiency and cooperation among the workers. It, being just and
fair would provide satisfaction to the workers. Such system should also solve disputes
between the employee union and management. The system should follow the
management principle of equal pay. It should motivate and encouragement those who
perform better and should provide opportunities for those who wish to excel. Sound
Compensation/Reward System brings peace in the relationship of employer and
employees. It aims at creating a healthy competition among them and encourages
employees to work hard and efficiently. The system provides growth and advancement
opportunities to the deserving employees.

The perfect compensation system provides platform for happy and satisfied workforce.
This minimizes the labour turnover. The organization is able to retain the best talent by
providing them adequate compensation thereby stopping them from switching over to
another job. The business organization can think of expansion and growth if it has the
support of skillful, talented and happy workforce.

2.2

Need for Compensation Management

A good compensation package is important to motivate the employees to increase

the organizational productivity.

Unless compensation is provided no one will come and work for the organization.
Thus, compensation helps in running an organization effectively and accomplishing its
goals.

Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, compensation serves the
purpose.

The most competitive compensation will help the organization to attract and
sustain the best talent. The compensation package should be as per industry standards.
2.3

Objectives of compensation management:

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To know more about the market rate i.e. compensation offered by the competitors

To design a fair compensation system

To design and implement most competitive reward strategies

To benchmark the compensation strategies

Todays compensation systems have come from a long way. With the changing
organizational structures workers need and compensation systems have also been
changing. From the bureaucratic organizations to the participative organizations,
employees have started asking for their rights and appropriate compensations. The higher
education standards and higher skills required for the jobs have made the organizations
provide competitive compensations to their employees.
2.4

Traditional Compensation Systems

In the traditional organizational structures, employees were expected to work hard and
obey the bosses orders. In return they were provided with job security, salary increments
and promotions annually. The salary was determined on the basis of the job work and the
years of experience the employee is holding. Some of the organizations provided for
retirement benefits such as, pension plans, for the employees. It was assumed that
humans work for money, there was no space for other psychological and social needs of
workers.
Change in Compensation Systems:
With the behavioral science theories and evolution of labour and trade unions, employees
started asking for their rights. Maslow brought in the need hierarchy for the rights of the
employees. He stated that employees do not work only for money but there are other
needs too which they want to satisfy from their job, i.e. social needs, psychological
needs, safety needs, self-actualization.

2.5

Approaches of compensation management

There are 3P approach of developing a compensation policy centered on the

fundamentals of paying for Position, Person and Performance. Drawing from external
market information and internal policies, this program helps establish guidelines for an
equitable grading structure, determine capability requirements and creation of short and
long-term incentive plans.

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The 3P approach to compensation management supports a company's strategy, mission

and objectives. It is highly proactive and fully integrated into a company's management
practices and business strategy. The 3P system ensures that human resources management
plays a central role in management decision making and the achievement of business
goals.

Paying for position

Paying for person

Paying for performance

Because it is so important to employees, the issue of pay deserves to be clearly addressed.

In spite of their hesitance, managers are capable of dealing with this sometimes difficult
issue in a professional and effective manner. By keeping the following basic points about
pay in mind, they can address virtually any pay-related topic with their employees in a
professional and productive manner.

2.6

Components of compensation

Compensation systems are designed keeping in minds the strategic goals and business
objectives. Compensation system is designed on the basis of certain factors after
analyzing the job work and responsibilities. Components of a compensation system are as
follows:

Compensation system
Compensation provided to employees can be direct in the form of monetary benefits
and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the compensation
offered is effectively managed, it contributes to high organizational productivity.

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2.7

Job Analysis

Job Analysis is a systematic approach to defining the job role, description, requirements,
responsibilities, evaluation, etc. It helps in finding out required level of education, skills,
knowledge, training, etc. for the job position. It also depicts the job worth i.e. measurable
effectiveness of the job and contribution of job to the organization. Thus, it effectively
contributes to setting up the compensation package for the job position.

Importance of Job Analysis

Job Analysis helps in analyzing the resources and establishing the strategies to
accomplish the business goals and strategic objectives. It forms the basis for demandsupply analysis, recruitments, compensation management, and training need assessment
and performance appraisal.

Components Job Analysis

Job analysis is a systematic procedure to analyze the requirements for the job role and job
profile. Job analysis can be further categorized into following sub components.

Components of job analysis

Job Position
Job position refers to the designation of the job and employee in the organization.
Job position forms an important part of the compensation strategy as it determines
the level of the job in the organization. For example management level employees

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receive greater pay scale than non-managerial employees. The non-monetary

benefits offered to two different levels in the organization also vary.

Job Description
Job description refers the requirements an organization looks for a particular job
position. It states the key skill requirements, the level of experience needed, level
of education required, etc. It also describes the roles and responsibilities attached
with the job position. The roles and responsibilities are key determinant factor in
estimating the level of experience, education, skill, etc. required for the job. It also
helps in benchmarking the performance standards.

Job worth:
Job Worth refers to estimating the job worthiness i.e. how much the job
contributes to the organization. It is also known as job evaluation. Job description
is used to analyze the job worthiness. It is also known as job evaluation. Roles
and responsibilities helps in determining the outcome from the job profile. Once it
is determined that how much the job is worth, it becomes easy to define the
compensation strategy for the position. Therefore, job analysis forms an integral
part in the formulation of compensation strategy of an organization. Organizations
should conduct the job analysis in a systematic at regular intervals. Job analysis
can be used for setting up the compensation packages, for reviewing employees
performance with the standard level of performance, determining the training
needs for employees who are lacking certain skills.

Pay structures
Once job analysis has been done organizations need to decide upon the pay
structures. Pay structure refers to the process of setting up the pay for a job in an
organization. The process deals with internal and external analysis to estimate the
compensation package for a job profile. Internal equity, External equity and
Individual equity are the most popular pay structures. Job description provides the
in depth knowledge about the job profile and its worth. Pay structures are the
strong determinant of employees value in the organization. It helps in analyzing
the employees role and status in the organization. It provides for fair treatment to
all employees. Pay structures also include the estimation of incentives. The level
of incentives also depends on the level of job position in the organizational
hierarchy.

Internal equity
The internal equity method undertakes the job position in the organizational
hierarchy. The process aims at balancing the compensation provided to a job
profile in comparison to the compensation provided to its senior and junior level
in the hierarchy. The fairness is ensured using job ranking, job classification, level
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of management, level of status and factor comparison. Organizations have to

bridge the gap between the industry standards and their salary packages. They
cannot provide compensation packages that are either less than the industry
standards or are very higher than the market rates. For the purpose they undertake
the salary survey. The Salary survey is the research done to analyze the industry
standards to set up the compensation strategy for the organization. Organizations
can either conduct the survey themselves or they can purchase the survey reports
from a reputed research organization. These reports constitute the last 2-5 years or
more compensation figures for the various positions held by the organizations.
The analysis is done on the basis of certain factors defined in the objectives of the
research.

Eternal equity
Here the market pricing analysis is done. Organizations formulate their
compensation strategies by assessing the competitors or industry standards.
Organizations set the compensation packages of their employees aligned with the
prevailing compensation packages in the market. This entails for fair treatment to
the employees. At times organizations offer higher compensation packages to
attract and retain the best talent in their organizations.

Salary survey
Organizations have to bridge the gap between the industry standards and their
salary packages. They cannot provide compensation packages that are either less
than the industry standards or are very higher than the market rates. For the
purpose they undertake the salary survey. The Salary survey is the research done
to analyze the industry standards to set up the compensation strategy for the
organization. Organizations can either conduct the survey themselves or they can
purchase the survey reports from a reputed research organization. These reports
constitute the last 2-5 years or more compensation figures for the various
positions held by the organizations. The analysis is done on the basis of certain
factors defined in the objectives of the research.

2.8 Types of compensation

Direct Compensation:
Direct compensation refers to monetary benefits offered and provided to employees in
return of the services they provide to the organization. The monetary benefits include
basic salary, house rent allowance, conveyance, leave travel allowance, medical
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reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular
interval at a definite time.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a
certain period say a day, a week, a month, etc. It is the money an employee receives from
his/her employer by rendering his/her services.

House Rent Allowance

Organizations either provide accommodations to its employees who are from different
state or country or they provide house rent allowances to its employees. This is done to
provide them Social security and motivate them to work
.

Conveyance

Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

Direct compensation:

Leave Travel Allowance

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These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families. The
allowances are scaled as
Per the position of employee in the organization.

Medical Reimbursement

Organizations also look after the health conditions of their employees. The employees are
provided with medi-claims for them and their family members. These medi-claims
include Health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide
them the social security. The bonus amount usually amounts to one months salary of the
employee.

Special Allowance

Special allowance such as overtime, mobile allowances, meals, commissions, travel

expenses, reduced interest loans; insurance, club memberships, etc. are provided to
employees to provide them social security and motivate them which improve the
organizational productivity.

Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to employees

in lieu of the services provided by them to the organization. They include Leave Policy,
Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits,
Retirement Benefits, Holiday Homes

Leave Policy

It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves, medical
leaves (sick leave), and maternity leaves, statutory pay, etc.

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Overtime Policy

Employees should be provided with the adequate allowances and facilities during their
overtime,
if they happened to do so, such as transport facilities, overtime payments, etc..

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an
interval of one year. Even their dependents should be eligible for the medi-claims that
provide them emotional and social security.

Indirect compensation:

Insurance

Organizations also provide for accidental insurance and life insurance for employees.
This gives them the emotional security and they feel themselves valued in the
organization.
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Leave Travel

The employees are provided with leaves and travel allowances to go for holiday with
their families. Some organizations arrange for a tour for the employees of the
organization. This is Usually done to make the employees stress free.

Retirement Benefits

Organizations provide for pension plans and other benefits for their employees which
benefits them after they retire from the organization at the prescribed age.
Holiday Homes: Organizations provide for holiday homes and guest house for their
employees at different locations. These holiday homes are usually located in hill station
and other most wanted holiday spots. The organizations make sure that the employees do
not face any kind of difficulties during their stay in the guest house.

Flexible Timings:

Organizations provide for flexible timings to the employees who cannot come to work
during normal shifts due to their personal problems and valid reasons.

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3.RESEARCH METHODOLOGY
The data for the study was collected through primary and secondary sources.

Primary Data:

Primary data is that provide first-hand information. It is collected through the

questionnaire.

Secondary data:

Secondary data collected through different journals and articles published by the
organization, company web sites and internal search engines.

SAMPLE DESIGN:
Simple random sampling method is used.
Sample size: 100

Limitations of the study:

The study is considered for a time period of 45 days.

As the employees are busy in their works, limited opinions are collected.

Errors may also cause due to the bias of the respondents. But efforts were made to
minimize such errors.
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3.1 DATA ANALYSIS AND INTERPRETATION

1. How long have you been with the organization?
S.NO

OPTIONS

NO. OF RESPONDENTS

PERCENTAGE (%)

Below
months

1 year

13

13

2-5 years

13

13

Above 5years

67

67

100

100

TOTAL

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Experience of employees
80
67

70

67

60
50
40
30
20

13
7

10

13

13

13

0
Below 6 months

1 year

2-5 years

Above 5years

Interpretation:
From the above analysis, most of employees have more than 5 years of experience.

2. Which of the following attracted you to apply for the job at ICICI
PRUDENTIAL?
S.NO

OPTIONS

NO.OF
RESPONDENTS

PERCENTAGE
(%)

Salary

10

10

Opportunities
growth

23

23

Job security

43

43

All of the above

24

24

100

100

TOTAL

for

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Applying for job

50
40
30
20
10
0

43
23
10

23

43
24

24

10

Interpretation:
From the above analysis, most of the employees attracted towards job security,
opportunities for growth.

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3. Are you aware of compensation system follows in your organization?

S.NO

OPTIONS

NO
OF PERCENTAGE
RESPONDENTS
(%)

Yes

70

70

No

10

10

To
extent

20

20

100

100

TOTAL

some

Awareness of compensation system

80
70

70

70

60
50
40
30

20

20

10

10

20

10

0
Yes

No

To some extent

Interpretation:
It is observed that the most of the employees have aware of compensation
system.

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4. Which type of compensation you prefer?

S.NO

OPTIONS

NO OF RESPONDENTS

PERCENTAGE (%)

Direct

54

54

Indirect

16

16

Both

30

30

100

100

TOTAL

Type of compensation prefer

60

54

54

50
40

30

30
16

20

30

16

10
0
Direct

Indirect

Both

Interpretation:
It is observed that the most of the employees preferred direct compensation.

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5. Which type of financial rewards provided to you by the company?

S.NO

OPTIONS

NO.
RESPONDENTS

Profit sharing

30

30

Gain sharing

22

22

Profit related pay

39

39

Share ownership

09

09

100

100

TOTAL

OF

PERCENTAGE (%)

Type of financial rewards

45
40
35
30
25
20
15
10
5
0

39 39
30 30
22 22
9

Interpretation:
It is observed that the most of the employees said profit related pay and profit
sharing.

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6. Which type of non-financial benefits provided to you by the company?

S.NO

OPTIONS

NO OF RESPONDENTS PERCENTAGE (%)

Personal growth

30

30

Recognition

41

41

Responsibilities

20

20

All of the above

100

100

TOTAL

Type of non financial rewards

45
40
35
30
25
20
15
10
5
0

41 41
30 30
20 20
9

Interpretation:
It is observed that the recognition is a most efficient factor as a non-financial
reward provided by the company.

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7. How do you rate medical facilities provided to you by the company?

S.NO

OPTIONS

NO.OF RESPONDENTS PERCENTAGE (%)

Highly satisfied

13

13

Moderately
satisfied

44

44

satisfied

40

40

dissatisfied

100

100

TOTAL

Rating of medical facilities

50
45
40
35
30
25
20
15
10
5
0

44 44

40 40

13 13
3
Excellent

Good

Average

Below average

Interpretation:
It is observed that most of the employees are satisfied with medical facilities
provided by the company.

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8. Are you satisfied with the leave benefits with pay?

S.NO

OPTIONS

NO.OF RESPONDENTS

PERCENTAGE (%)

Satisfied

79

79

Dissatisfied

21

21

100

100

TOTAL

Satisfaction of employees with leave benefits

90
80
70
60
50
40
30
20
10
0

79

79

21

Satisfied

21

Dissatisfied

Interpretation:
Hence, it is observed that the leaves are provided with pay by the company.

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9. What kind of Fringe benefits provided by company?

S.NO

OPTIONS

NO.OF RESPONDENTS PERCENTAGE (%)

Gratuity

10

10

Insurance plans

30

30

Medical care

20

20

All of these

40

40

100

100

TOTAL

Types of fringe benefits

45
40
35
30
25
20
15
10
5
0

40 40
30 30
20 20
10 10

Interpretation:
Hence, it is observed that the all fringe benefits (gratuity, insurance plans, medical
care) provided by the company.
.

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10. Do you think that

attraction/retention?

compensation

management

helps

in

S.NO

OPTIONS

NO.OF
RESPONDENTS

PERCENTAGE
(%)

Yes

82

82

No

18

18

100

100

TOTAL

better

staff

Attraction of staff based on compensaation management

90

82

82

80
70
60
50
40
30

18

20

18

10
0
Yes

No

Interpretation:
Hence, it is observed that the compensation helps for better staff attraction.

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1. INDUSTRYPROFILE
INSURANCE IN INDIA:
The insurance sector in India has come with 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 360 degree turn witnessed over a
period of almost two centuries.
4.1 A Brief history of the Insurance Sector
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 in Calcutta. 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: Central Government taken over and nationalized 245 Indian and foreign insurers.
LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs.
5 core 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:
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 companies 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.

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4.2 Insurance sector reforms:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor
R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its
future direction.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in
mind the structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to address the need
for similar reformsIn 1994, the committee submitted the report and some of the key
recommendations included:

1) 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.
2) Competition:
Private Companies with a minimum paid up capital of Rs.1billionshould 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. 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.
3) Regulatory Body:
The Insurance Act should be changed An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4) Investments:
Mandatory Investments of LIC (Life Insurance Of Corporation) Life Fund in government
securities to be reduced from 75% to 50%GIC (General Insurance of Corporation) and its
subsidiaries are not to hold more than 5% in any company (There current holdings to be
brought down to this level over a period of time).

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5) 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
The committee emphasized that in order to improve the customer services and increase
the coverage of the insurance industry should be opened up to competition. But at the
same time, the committee felt the need to exercise caution as any failure on the part of
new players could decrease the public confidence in the industry. Hence, it was decided
to allow competition in a limited way by stipulating the minimum capital requirement of
Rs.100 crores. The committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.

4.3 Foreign Direct Investment (FDI) Policy in Insurance Sector:

As per the current (Mar 06) FDI norms, foreign participation in an Indian insurance
company is restricted to 26.0% of its equity / ordinary share capital. The Union Budget
for fiscal 2012 had recommended that the ceiling on foreign holding be increased to
49.0%. All life insurance companies have to comply with the strict regulations laid out by
IRDA. Therefore there is risk in going in for private insurance players. Even if Life
Insurance Corporation of India (LIC), the state owned the largest player in the market, the
private companies are coming out with better products which are more beneficial to the
customer. Among such products are the ULIPs or the Unit Linked Investment Plans
which offer both life cover as well as scope for savings or investment options as the
customer desires. Further, these types of plans are subject to a minimum lock-in period of
three years to prevent misuse of the significant tax benefits offered to such plans under
the Income Tax Act. Hence, comparison of such products with mutual funds would be
erroneous.
Commission / Intermediation fees:
The maximum commission limits as per statutory provisions are:
Agency commission for retail life insurance business:
35 - 40% for 1st year premium if the premium paying term is more than 20 years
Page | 32

25 - 30% for 1st year premium if the premium paying term is more than 15 years
10 - 15% for 1st year premium if the premium paying term is less than 10 years
7.5% - year 2 and 3rd year and 5% - thereafter for all premium paying terms.
Agency commission for retail pension policies:
7.5% for 1st year premium and 2.5% thereafter Maximum broker commission - 30%
Referral fees to banks Max 55% for regular premium and 10% for single premium.
However in any case this fee cannot be more than the agency commission as filed under
the product. However, the above commission may be further subject to the product wise
limits specified by IRDA while approving the product.
4.4 Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies. The other decisions taken simultaneously to
provide the supporting systems to the insurance sector and in particular the life insurance
companies were the launch of the IrDAs online service for issue and renewal of licenses
to agents. The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of insurance agents in place
to sell their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 19 life insurance and 6 general
insurance companies have been registered.
ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI
Bank, Indias second largest commercial bank & a well-known and trusted name in the
financial services in India, & Prudential Policy, one of the United Kingdoms largest
players in the financial services sectors.
In a span of just over 12 years, the company has forged a position of preeminence as one
of the largest Asset Management Companys in the country, contributing significantly
towards the growth of the Indian mutual fund industry. Our Average Assets under
Management (AAUM) as on Mar 2011 Month-end in Mutual Fund Schemes stood at Rs.
73551.95Crores.

Page | 33

As an Asset Management Company, we have over 15 years of experience and are

currently managing a comprehensive range of schemes of more than 46 Mutual funds and
a wide range of PMS Products for our investors, spread across the country. We service
this investor base with our own branch network of over 160 branches and a distribution
reach of over 42,000 channel partners.

2. COMPANY PROFILE

5.1 ICICI Bank

The World Bank, the Government of India and the Indian Industry, to promote industrial
development of India by providing project and corporate finance to Indian industry,
established ICICI LTD., in 1955.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at 31st March, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million)
for the year ended 31st March, 2010. The Bank has a network of 2016 branches and
about 5219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range
of banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre and representative offices in United Arab Emirates,
China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary
has established branches in Belgium and Germany. ICICI Bank's equity shares are listed
in India on Bombay Stock Exchange and the National Stock Exchange of India Limited
and its American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).

Page | 34

5.2 Prudential Policy (formerly known as Prudential Corporation

policy)

Prudential policy is an international financial services group with significant operations

in Asia, the US and the UK. They serve approximately, 25 million customers and have
290 billion in assets under management.
They are among the leading capitalized insurers in the world with an Insurance Groups
Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009).
The Group is structured around four main business units:

Prudential Corporation Asia (PCA)

PCA is a leading life insurer in Asia with presence in 12 markets and a top three position
in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore,
and Vietnam. PCA provides a comprehensive range of savings, protection and investment
products that are specifically designed to meet the needs of customers in each of its local
markets. PCAs asset management business in Asia has retail operations in 10 markets
and it independently manages assets on behalf of a wide range of retail and institutional
investors across the region.

Jackson National Life Insurance Company

Jackson is one of the largest life insurance companies in the US, providing retirement
savings and income solutions to more than 2.8 million customers. It is also one of the top
five providers of variable and fixed index annuities in the US. Founded nearly 50 years
ago, Jackson has a long and successful record of providing effective retirement solutions
for their clients

Prudential UK & Europe

(PUE is a leading life and pensions provider to approximately 7 million customers in the
UK. It has a number of major competitive advantages including significant longevity
Page | 35

experience, multi-asset investment capabilities, a strong investment track record, a highly

respected brand and financial strength. PUE continues to focus on its core strengths
including its annuities, pensions and investment products where it can maximize the
advantage it has in offering with-profits and other multi-asset investment funds.
5.3 THE JOINT VENTURE
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million. The paid up capital is Rs.
1900 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK
(26%).

History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly owned subsidiary. ICICIs shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Banks acquisition
of Bank of Madura Limited in an all stock amalgamation in fiscal 2001. And secondary
market sale by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry.

Our vision:

To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass people and service. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders.
Providing an enabling environment to foster growth and learning for our
employees.
Our mission:
Understanding the needs of customers and offering them superior products and
service.
Building long lasting relationships with their partners.

Page | 36

 Providing an enabling environment to foster growth and learning for their

employees
Objective:
The principal objective was to create a development financial institution for providing
medium-term and ling term project financing to Indian businesses. In the 1990s, ICICI
transformed its business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI
Bank.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non Japan Asia to be listed the NYSE.

Structure:

After consideration of various corporate structuring alternatives in the context go the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI formed the view that the merger
of ICICI Bank would be the optimal strategic alternative for the both entities, and would
create the optimal legal structure for the ICICI Groups universal banking strategy. The
merger would enhance value for ICICI shareholders through the merged entity access to
low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments systems and provide transaction banking service. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale
of operations , scam less access to ICICI s strong corporate relationship built up over
five decades, entry into view business segments, higher market share in various business
segments, particularly fee-based service, and access to the vast talent pool of ICICI and
its subsidiaries.
5.4 Awards and Recognition:
ICICI Prudential AMC has constantly been on the forefront of innovation and has
introduced products aligned to meet customer needs leading to a well-diversified product
portfolio. As acknowledgment of our efforts, we have received valued recognition from
various organizations of international repute. Some of the prominent awards and
recognition are:

Page | 37

Bloomberg UTV Financial Leadership Awards 2011:

ICICI Prudential AMC received the coveted UTV Bloomberg Financial

Leadership Award 2011 for Best Contribution in Investor Education & Category
Enhancement of the Year in the mutual fund category. Mr. Nimesh Shah,
Managing Director, ICICI Prudential AMC received this prestigious accolade
from Honorable Ex. Finance Minister, Sri Pranab Mukherjee.

Morning Star Mutual Fund Awards 2011:

India Debt Fund House Award 2011

Business World Mutual Fund Awards 2010:

ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3year SIP performance)
ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund Mid and
Small Cap for the year 2010
Mr. Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential
Discovery Fund) for the year 2010
Mr. Sankaran Naren adjudged Best Equity Fund Manager (ICICI Prudential
Discovery Fund ) for the year 2010
NDTV Profit Mutual Fund Awards 2010:

ICICI Prudential Discovery Fund - Category Emerging Leader (Based on past

3-year SIP performance)
Lipper Fund Awards 2010 India:
ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset
INR flexible)

Page | 38

Management
Mr. Nimesh Shah- Managing Director & Chief Executive Officer

Nimesh Shah joined ICICI Prudential AMC as

its Managing Director in July 2014.

Nimesh has completed his Chartered

Accountancy. Prior to joining ICICI Prudential
AMC, Nimesh was Senior General Manager at
ICICI Bank and has over 18 years experience
in banking and financial services. At ICICI
Group, he has handled many responsibilities including project finance, corporate banking
and international banking.

He was associated with one of the first batches of senior managers selected to lead the
foray of ICICI Bank into the international arena. He led ICICI Banks foray into the
Middle-Eastern region and Africa.

The International Advisory Business Division of ICICI Prudential Asset Management

Company Ltd. advises offshore funds in jurisdictions spanning Japan, Middle East,
Taiwan & Singapore.
As on 30th June, 2010, we are advising a cumulative asset size of close to $2
Billion spanning Equity, Debt & Real Estate. Through the onshore presence and legacy of
our parent company in India, we present the following benefits to offshore investors:
Excellent Onshore Investment Insights and Information.
Extensive on the ground research capabilities.
Deep knowledge of the reputation, vision and execution capabilities of promoterrun companies.
An innate understanding of governance structures of corporate entities.
As one of the largest Asset Management Companies in India, we have had a successful
track record in serving domestic clients across the Institutional and Retail Investor space.
We are very confident in our ability to enable International Investors to participate in the
Page | 39

long-standing India growth story and generate alpha over a medium to long term
horizon.
Their presence all over India is with 2100 branches including 1,116 micro-offices, over
290,000 advisors and 18 banc assurance partners. They were also the
first lifeinsurancecompany to receive the National Insurer Financial Strength rating from
Fitch ratings. It does not stop here they were also rated thrice in a row by The Economic
Times AC Nielson ORG survey of Most Trusted Brand' as the Most Trusted Private
Life Insurer.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one of
the foremost financial services companies of India and Prudential policy, one of the
leading international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector life insurance companies to begin
operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010) with
ICICI Bank and Prudential policy holding 74% and 26% stake respectively. For the
period April 1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of
total premiums and has underwritten over 10 million policies since inception. The
company has a network of over 1,500 offices and over 1, 60,000 advisors, as on
September 30, 2010. The company has assets held over Rs. 65,000 crores as on
September 30, 2010.

For the past nine years, ICICI Prudential Life has maintained a wide range of Life
Insurance products that meet the needs of the Indian customer at every step in life.

ICICI Prudential Life recently completed 10 years on the Indian Insurance scope on 12th
December 2010.

ICICI Bank is Indias second largest bank with total assets of about 334500647Rs.1,
676.59 billion (US$ 38.5 billion) at March 31, 2012 and profit after tax of Rs. 20.05
Page | 40

billion (US$ 461 million) for the year ended March 31,2012 (Rs. 16.37 billion(US $376
million)in fiscal 2004).

ICICI Bank has a network of about 573 branches and extension counters and over 2,000
ATMs. ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the asset management.

ICICI bank set up its international banking group in fiscal 2002 to cater to the cross
border needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI bank currently has subsidiaries in the United Kingdom, Canada and
Russia, branches in Singapore and Bahrain and representative offices in the United
States, China, United Arab Emirates, Bangladesh and South Africa.

ICICI Banks equity shares are listed in India on the Bombay Stock Exchange and the
National Stock Exchange of India Limited and it American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

5.5 ICICI Bank at the present scenario:

India has never had it good before booming economy reflects in the rise of SENSEX past
the 10,000 mark, projections of an 8-plus percent GDP growth, the revival of
manufacturing and rising foreign investments have delivered growth in the banking
sector.

During the recent survey conducted by the KPMG with respect to the Indias top banks,
ICICI bank holds its slot in the list of top banks.

6. Todays Modern Compensation System

Page | 41

Today the compensation systems are designed aligned to the business goals and
strategies. The employees are expected to work and take their own decisions. Authority is
being delegated. Employees feel secured and valued in the organization. Organizations
offer monetary and non-monetary benefits to attract and retain the best talents in the
competitive environment. Some of the benefits are special allowances like mobile,
companys vehicle; House rent allowances; statutory leaves, etc.
Legal frame work for payment of salary in India
The Employee State Insurance Act, 1948:
The employee state Insurance act is a very important social security measure, which came
into force form 1948. This act promotes general welfare to the worker.
Payment of wages Act, 1948
The Minimum Wages Act, 1948 is an important Act under Industrial Law
Constitutional validity of the Act: The Act was enacted so as to provide 'social justice'
and 'living wages' as pointed out in Article 43 of the Constitution (Directive Principles of
State Policy)
Living Wages and fair wages are possible after getting awareness and collective
bargaining by trade unionism.
Preamble says: To provide for fixing minimum rates of wages in certain employments.
Minimum Wages Act, 1948 is Act XI of 1948. It has 31 Sections and 1 Schedule. The
Sections are not arranged in Chapters.
The Minimum Wages (Central) Rules, 1950 and Minimum Wages (Central Advisory
Board) Rules, 1949 are enacted by following the Act. Individual states brought their own
rules, such as the Andhra Pradesh Minimum Wages Rules, 1960.
The payment of bonuses Act, 1965
Up to the year 2012-2013 the corporation was paying ex-gratia to its employees
following the principles laid on in bonus act. The government of AP has rejected the
request of ICICI PRUDENTIAL to pay ex-gratia from the year 2013-2014 onwards as the
corporation was incurring losses.

Payment of Gratuity Act, 1972:

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The objective of the act is to provide gratuities to the workers, who dont do not have any
managerial or administrative capacity are employed under the government and do not
draw wages exceeding Rs. 100/ per month
Benefits of this act are as follows:
Gratuity is payable to the retired persons death, their disablement or termination of their
job, after five years of continuous service.
Gratuity is payable at the rest of 15 days wages for every completed year of service or
part thereof, subject to a maximum of 20 months wages or Rs. 2,50,000/ whichever is
lower.

Equal remuneration Act, 1976

Equal Remuneration Act, 1976 is an Indian Industrial Law brought into force to provide
for the payment of equal remuneration to men and women workers and for prevention of
discrimination, on the ground of sex, against women in the matter of employment and for
matters connected therewith, or incidental to.
Its main objective is
To provide medical facilities to the workers and their families who are exposed to the
risk of sickness, employment injury, occupation diseases and maternity
To provide unemployment insurance to industrial workers during illness
To provide social insurance form workers
Benefits that employees get from this act are:
Sickness benefits
Maternity benefits
Disablement benefits
Dependent benefits
Medical benefits
Funeral benefits

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The corporation has to obtain exemption from the provisions of the act as it has a well
establishment of 100 bedded hospital at Hyderabad and 36 dispensaries at district headquarters and other places, and is providing better medical facilities to its employees
Employee pension scheme 1995:
This scheme was notified by the government of India under the employees provident
fund and family pension act. 8.33% of the employees basic pay is contributed to the
pension fund. There are two types of option in the scheme.
1.Higher pension scheme:
The actual basic pay of the employee is considered and 8.33% of it is diverted to the
pension fund. Thus the outcome is that he gets a higher pension and lower PF.

2.Lower pension scheme:

Here, the basic pay of the employee is considered as Rs 6500 regardless his actual basic
pay. Hence he gets a lower pension and higher PF.
3AP factories, establishments (National, Festival & Other Holidays) Act 1975:
The act provides for allowing 8 national and festival holidays in a calendar year to the
employees the national holidays are Republic day (26th January), May day(1st May)
Independence day (15th August)) Gandhi Jayanthi (2ndOctober) and 4 festival holidays.
4.Depot Incentive Scheme:
Depot is a basic unit of operation of buses services, where majority of employees are
deployed. Hence, major focus is to be made for improvement of productivity at depots.
At Present Corporation is operating services through its 209 depots.
A comprehensive depot incentive scheme was designed and implemented at all depots of
the corporation in the year 1980.

5.Incentives Scheme for Drivers Operating Services with Ticket Issuing Machines
(Tims)
Ticket issuing machines have been introduced to be operated by Drivers on long
distances services. This has resulted in savings of conductor posts in these services. To
motivate the drivers for operating ticket issuing machines. A separate incentive scheme

Page | 44

has been designed and implemented, with effect from May 2000. Revisions were made
from time to time depending upon the changes in the operating environment.

6.Incentive Schemes at Production Units

The corporation is meeting the needs of the depots & other unit for overhauled
aggregates, tires, new fabricated vehicles, tickets and other stationery through 16
production units viz., 7 Workshops and 7 Tire shops, 1 Bus Body Building Unit
&Printing Press. In order to motivate the workmen and achieve higher performance
levels, the production incentive section designs and monitors the incentive schemes in all
the production units of the corporation.

7.Provident Fund
The Employees provident Fund & Misc. Provision Act 1952 is a beneficial piece of
legislation and amply be described as a Social Statute, with an objective to ensure better
future of the employee concerned on his retirement and benefit of the dependents in case
of his premature death. The amount is payable in are lump sum and as a matter of fact it
acts as a buffer on the retirement or on the death of an employee.
Employees Pension Scheme (EPS 1995):
This scheme has come into force 16-11-1995. All members of FPS 1971 have become
members of EPS 1995. 8.33% of employers contribution of every employee will be
remitted to EPS 1995 towards employees share of contribution. The employee will get
pension after superannuation, death etc., this scheme provides comprehensive social
securitys not only to employees but also to its spouse, children, orphans and nominees.

EDLIF
This scheme came into force with effect from 01-10-1975 with the purpose providing life
insurance benefit to the employees died while in service and exemption to operate this
scheme with effect from 01-01-1995. There will not be any contribution from the
employee for this fund. ICICI PRUDENTIAL will contribute 0.05 % of (pay + DA to this
scheme)

Page | 45

Medical Facilities
Free Medicare is provided to the employees, spouse/children and dependent parents of
employees.

Health Profile:
A massive health check-up program of all employees of the Corporation was conducted
and Electronic Health Card of all employees of the corporation and Electronic Health
Data Bank work is under process.
Benefits under Voluntary/Medical Retirement
Employees after putting a minimum of 20 years of service are eligible for Voluntary
Retirement. Employees who are declared medically unfit will be retired on medical
grounds.
In case of voluntary/medical retirement, employees are eligible for the
benefits in addition to normal retirement benefits

following

Payment of additional gratuity for a maximum period of 5 years notional service based
on the last pay drawn reminder period of service whichever is less.
Payment of Employers contribution of Provident Fund for a maximum period of 5 years
Notional service or reminder period of services whichever is less.
Payment of 15 days wages (Pay +DA) for every year of left over service if the left over
service (i.e. till the date of superannuation) is less than 5 years.
Payment of 20 days wages (Pay +DA) for every year of left over service, if the left over
service is above 5 years but below 10 years.
Payment of 25 days wages (Pay +DA) for every year of left over service. If the left over
service is above 10 years limited to a maximum period of 10 years.

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Staff Benefit Fund

As per the strength of the employees as on 31st March of the year, Benefit Fund @
Rs.5.00 per employee will be allocated as budget for Staff Benefit Fund and Rs.7.50 per
employee will be allocated to ARTSCO towards Sports and Cultural activities. Out of the
budget allotment from SBF the following expenditure will be incurred from S.B.F
Educational Assistance (i.e. for purchase of Books)The eligibility criteria for sanction of
educational assistance for purchase of book to the employees children is that the basic
pay of the employee should not exceed Rs. 10650/Staff Benevolent-cum-Thrift Fund (SBT)
Under this scheme, member employee has to contribute an amount of Rs.60/- per month.
In case of death of employee member the family member will be paid an amount of
Rs.1.00 Lakh as death Ex-gratia along with subscription paid by the employee together
with interest @8%.
In case of normal retirement, the amount recovered from employee will be refunded
along with an interest of 8% per annum. In addition to this, Retirement Ex. Gratia of
Rs.420/- for each year of SBT contribution period is paid.

Staff Retirement Benefit Scheme

Contribution of member employee is Rs.250/- per month. The Management Contribution
to SRBS has been revised from Rs.3.00 Crores per year to Rs.6.00 Crores per year w.e.f.
01.04.2009.
Retirement Benefit is revised from the existing range of Rs.560/- to Rs.2420/-(maximum)
01.06.2011 given ranging from Rs.720/- to Rs.3200/- per month depending upon the
membership period.

6.1 Facilities provided to the ICICI PRUDENTIAL Retired Offices/Employees

ICICI PRUDENTIAL Retired Employees Medical Facilities Scheme 2003, has been
introduced in the Corporation in the year 2012. All the retired Officers/Employees are
eligible to become members of the Scheme by paying the requisite membership
contribution as one time measure.
Officer ..........Rs.25,000/Page | 47

Class II Supervisors

..Rs.20, 000/-

Class III & IV Employees ..Rs.15, 000/Under the Scheme the Retired Officers/Employees and their spouses are provided
medical facilities on the same scale as provided to the in-service employees at ICICI
PRUDENTIAL Hospital/ Dispensaries and with a ceiling up to Rs.4.00 Lakhs between
the retired employee and spouse during the life time of the retired Officer/Employee
when specialist treatment is provided in other hospitals in the field of Heart, Kidney,
Brain Surgery, Cancer etc.
Employees who have not opted for ICICI PRUDENTIAL Retired Employees Medical
Facilities Scheme 2003 are provided with free consultation with the Civil Surgeon, Civil
Asst. Surgeon and for other clinical examination like Urine, Blood etc. in ICICI
PRUDENTIAL Hospital at Tarnaka or in any of the RTC dispensaries.
Personal Health Care: (regular medical checkups) some of the companies provide the
facility for extensive health check up.
Flexible Time: The main objective of flexi time policy is to provide opportunity to
employees to work with the flexible working schedules or initiated by employees and
approve by management to meet business commitment while supporting employees
personal needs.
Employee Assistance Programmer: Various assistance programmers arranged like
external counseling service so that employees or members of their immediate family can
get counseling on various matters.
Maternity and Adoption Leave: Employee can avail maternity or adoption leaves.
Maternity leave policies have also been introduced by various companies.
Medi-claim Insurance Scheme: The insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or
injury or pregnancy

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7.FINDING OF PROJECT

The employees are aware about compensation system in ICICI Prudential.

Majority of the employees feel that good compensation policy helps to retain the
employees and to develop the organization.
Direct and indirect compensation methods are preferred by employees.
Majority of the employees attracted by job security and opportunities for growth.
Most of the employees feel that the management provides equal pay for work of
equal value.
Most of the employees feel that benefits attract and motivate the employees to
work efficiently.
Majority of the employees preferred both monitory and non-monitory benefits.
Most of the employees satisfied with leave benefits provided by the company.

8.Suggestions

Compensation should be provided based on performance.

Management should give more benefits to motivate employees to improve the
efficiency.
Fringe benefits should be given to all employees equally.
Management should provide equal pay for work of equal value to all the
employees.
Need to improve medical facilities for employees.

Management should concentrate on both monitory and non-monitory benefits for

employees to develop the organization

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9.Conclusion

The report concludes that the company is providing good compensation for employees,
which plays a vital role in improving the performance of employees at work place. Most
of the employees are satisfied with both types of benefits i.e. monetary and non-monetary
provided by the organization.

The overall project suggests that performance is being measured and appraised based on
the organizational and individual performance. Competition among employees exists and
the job security was based on the hard work shown by the employees at the work place.

The compensation system was designed on the basis of job work and related proficiency
of the employee and the results thus suggested that since the model was widely accepted
by the company so the people got engaged in wasting less time. They utilized their time
to improve their performance, efficiency effectively to rise in the organization thus
resulting in good compensation for the efforts put in by the employees.

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10.Bibliography

DeCenzo, D. A., & Robbins, S. P. (2008). Human Resource Management (Third

Editioned.).New Delhi: Prentice - Hall of India.
Agrawal, D. G. Dynamics of Human Resource Management in Nepal.
Kathmandu: M.K. Publishers.

Sources:
www.google.co.in
www.iciciprulifel.com
www.wikipedia.org

Questionnaire
Page | 51

1.How long have you been with the organization?

a.Below 6 months
b.1 year
c.2-5 years
d.Above 5years

2.Which of the following attracted you to apply for the job at ICICI PRUDENTIAL?
a.salary
b.Opportunities for growth
c.Job security
d.All of the above

3.Are you aware of compensation system follows in your organization?

a.Yes
b.No
c.To some extent

4.Which type of compensation you prefer?

a.Direct (wages/salaries, Incentives)
b.Indirect (Fringe benefits, Perquisites)
c.Both

5.Which type of financial rewards provided to you by the company?

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a.Profit sharing
b.Gain sharing
c.Profit related pays
d.Share ownership

6.Which type of non-financial rewards provided to you by the company?

a.Personal growth
b.Recognition
c.Responsibility
d.All of the above

7.How do you rate medical facilities provided to you by company?

a.Excellent
b.Good
c.Average
d.Below average

8.Are you satisfied with the leave benefits with pay?

a.Satisfied
b.Dissatisfied

9.What kind of Fringe benefits provided by company?

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a.Gratuity
b.Insurance plans
c.Medical care
d.All of these

10.Do you think that compensation management helps in better staff attraction/retention?
a.Yes
b.No

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