PROJECT WORK

Motivation level Sales personnel of Public sector and private sector life insurance companies: A comparative study

INDEX Introduction Objectives of the study Research Methodology Motivation level Sales personnel of Public sector and private sector life insurance companies: A comparative study Findings

Chapter No.1

Introduction

MOTIVATIONAL SALESFORCE
Motivational is generally regarded as the process of getting people to work to words the achievement of an objective. Ideally it should go beyond the achievement of company objective, plans forecast of targets and help the company win commitment of sales force to the company. Sales force is primarily responsible for achieving the sales targets and already mentioned the sales force can not be controlled, administered in the way factory workers or office staff can be monitored. The sales force is required to be self starters highly ambitions, result oriented and go-getter. All the sales situations can not be predicted and and pre planned in view of the dynamic of the market place. Effective selling therefore, required creative skills. Thus the sales force has to be kept highly motivated and committed both externally as well as internally. Attracting and maintaining a well motivated sales force is a challenging task. The confidence and motivation of sales person get worn out by the inevitable rejection he suffers from customer as part of his every day activities. In same situations such as selling office automation products (electronic typewriters, computers, Xerox machine),consumer durable (television, refrigerator, scooters etc.) rejection may greatly outnumber success. Thus motivation of sales person poses a major challenge to the management. The challenge of motivation is magnified by the fact that the sales person and supervision are normally geographical supported as a result the sales person may feel isolated and even neglected. He is prone to frustration of sweets and failure coupled with extra working hours. He requires extensive travelling, many days of separation from family and with sense of risk involved in travelling. Above all he has to live in the environment of competitiveness with his own colleagues to meet his targets. In market situation characterized by keen competition he is constantly exposed to the offering of the competing manufacturers in terms. At their sales compensation packages working condition etc.

All these peculiar condition therefore require an understanding of motivational needs of sales person by the management.

MOTIVATIONAL NEEDS
While studying motivational theory, behavior research studies have revealed that motivation can be created if needs can be studied, evaluated and predicted and fulfilled. We know that various types of needs arise out of ambition/dreams and all needs create tension leading to that extra bit of effort and activity which help fulfill these needs and achieve the goals. Motivated person generally, put higher performance as compared other person in organization Hence to study the motivational pattern of sales person/sales executive we need to study the process of creating ambition, leading to arousal of needs and hence to that extra activity.

Ambition dream
Activity

Needs & want

Tension

Achievements of goals
Every sales person has different types of needs, goals and problems of his life and the leader i.e. sales executive has to understand these needs of each individuals sales person of his team before applying the principles of motivations. According to A.H Maslow needs can be classified into five categories.

1. PHPHYSIOLOGICAL NEEDS :- Food, clothing, shelter are primary needs which are ordinarily satisfied.

2. SASEFTEY NEEDS :- Protection from threat, danger and deprivation etc.

3. SOCIAL NEEDS: - needs to feel that everyone belongs to a relationship, to feel as being accepted as part of the society.

4. EGO NEEDS: - needs which satisfy the enhancing of self image, self esteem, self respect and achievement salesperson in general has high level of ego needs.

5. SELF ACTUALISATION NEEDS:- these are the desires of self development, self fulfillment and self growth.

As you all know that level of the needs and understanding of the sales personnel do not remain stationary, as the sales personnel grows in life, in age and carrier, his needs shift and to keep the motivational level high, the supervisors and sales manager must be able to foresee such changing needs and desires and must manage for these needs.

Q Q.3 5 4 4 4 4 4 4 4 4 4 4 5 5 55 4.2307 69 Q 4 4 4 4 5 4 4 3 3 4 5 4 4 5 53 4.0 7 Q5 4 3 3 4 4 4 4 4 3 3 2 3 3 44 3.38 Q 6 4 4 4 4 5 4 3 4 5 5 5 4 4 55 4.2 3 Q 7 5 4 3 4 4 4 4 4 1 4 4 5 4 50 3. 84 Q 8 5 4 3 3 5 4 4 4 3 5 3 2 4 49 3.7 6 9 5 5 4 4 4 4 3 4 4 3 5 5 2 5 2 4 Q 10 3 4 3 4 3 4 4 5 1 4 2 3 4 44 3. 38 Q 11 5 3 4 3 2 4 4 4 3 4 5 5 4 50 3.8 4 Q 12 3 4 4 4 1 4 5 4 2 2 4 4 4 45 3. 46

Q N O13 4 4 5 4 4 4 5 4 4 4 4 4 5 55 4. 23

Q N O14 Q NO- 15 3 3 4 5 4 4 5 4 3 2 3 4 5 5 4 5 5 4 4 5 4 5 5 5 4 3

SUM 50 46 46 49 44 48 49 48 38 46 46 47 47 604 46.46 154

49 58 3. 76 4.46

AVER AGE 4.1666 67 3.8333 33 3.8333 33 4.0833 33 3.6666 67 4 4.0833 33 4 3.1666 67 3.8333 33 3.8333 33 3.9166 67 3.9166 67 50.333 33 3.8717 95

Mean value

Mean value

9Satisfaction level) LIC SALES FORCE 1. Satisfaction level as a career agent 2. Salary 4.07 4.230

9Satisfaction level) Other private insurance companies

4.08

4..5

3. Bonus, reward & compensati on 4. Social recognition 5. Career prospects 6. Future monetary security

3.3.8

4.33

4.23

2.83

3.84

3.66

3.76

7. Job satisfaction 8. Decision making power 9. Fringe benefits 10. Work culture

4.0

4.41

3.38

3.72

3.84

3.91

3.46

4.41

11. Relationship 4.23 with seniors 12. Job recognition 13. Nature of job 4.46 3.76

4.25

3.83

4.16

LIC SALES FORCE 1. Satisfaction level as a career agent 2. Salary 4.07 4.230

OTHERS 4.08

4..5

3. Bonus, reward & compensation 4. Social recognition 5. Career prospects 6. Future monetary security 7. Job satisfaction 8. Decision making power 9. Fringe benefits 10. Work culture 11. Relationship with seniors 12. Job recognition 13. Nature of job

3.3.8

4.33

4.23 3.84 3.76 4.0 3.38 3.84 3.46 4.23 3.76 4.46

2.83 3.66 4 4.41 3.72 3.91 4.41 4.25 3.83 4.16

Chapter No.2

Objectives of the study

Chapter No.3

 Research Methodology -In order to achieve the objectives of the study require data has been collected through the various sources they are; Sources of Secondary Data a)Official websites of the leading life insurance companies like LIC of India Bajaj Alliance, Reliance Life, ICICI Prudential, etc. Articles, news, research findings

b)

Books magazines and newspapers

In order to study the Motivation Level Of Sales Force of LIC and other Private Life Insurance Companies require data has been collected through employee survey method with the help of formally designed questionnaire. Sample Size: 26 LIC: 13 Other Life Insurance Companies: 13 Sampling Population: All the Sales Agent of LIC and other private sector life insurance companies having work experience more than 1 years. Sampling Frame: All the Sales Agents of LIC and other Life Insurance Companies live in Jamshedpur. Sampling Tool: Random Sampling Place: Jamshedpur Time: March 2012.

All the respondents will be consulted personally by me. In case of non-cooperation from any of the respondents next easily available sample will be picked up randomly. Data Analysis: Tabulation, cross tabulation followed by graphical presentations.

Chapter No.4

Motivation level Sales personnel of Public sector and private sector life insurance companies: A comparative study

Chapter No.5 Findings Sales force satisfaction level Of LIC of India

Level Very satisfied Salary Monetary Reward Social Recognition Career Prospects Monetary Security Job Satisfaction Decision Making Authority Other Benefits Work Culture Relationship with the Seniors Job Recognition Nature of Job 8% 10% 2% 10% 5% 40% 80% 30% 5% 10% 5% 5% 5% 5% 5% 5% 5% 5% 30% 80% 70% 30% 5% 10% 25% 5% 25% 15% 10% 10% 10% 10% 0% 30% 20% 20% 40% 10% 40% Satisfied Neither Satisfied nor Dissatisfied 5% 40% 15% 30% 30% 20% 30% Diss atisfi ed 70% 3% 40% 20% 5% 56% 10% Very Dissatisfi ed 25% 2% 10% 20% 5% 14% 10%

Degree of sales force satisfaction: LIC of India

N a t u re o f J o b

J o b R e c o g n it io n R e la t io n s h ip w it h t h e S e n io rs W o rk C u lt u re

O t h e r B e n e fit s D e c is io n M a k in g A u t h o rit y J o b S a t is fa c t io n

V e r y D is s a tis fie d D is s a tis fie d N e ith e r S a tis fie d n o r D is s a tis fie d S a tis fie d

M o n e t a ry S e c u rit y

V e r y s a tis fie d

C a re e r P ro s p e c t s

S o c ia l R e c o g n it io n

M o n e t a ry R e w a rd

S a la ry
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Level

Very satisfied 5

Satisfied

Neither Satisfied nor Dissatisfied 3

Diss atisfi ed 2
1.4

Very Dissatisfi ed 1
0.1 5.15

4
1.25 1.2

Salary Monetary Reward Social Recognition Career Prospects Monetary Security Job Satisfaction Decision Making Authority Other Benefits Work Culture Relationship with the Seniors Job Recognition Nature of Job

1.2

0.75

0.8

0.45

0.06

2.06

0.5

0.8

0.9

0.8

0.1

3.1

0.5

1.6

0.9

0.4

0.1

3.5

0.5

0.4

0.6

0.1

1.6

0.5

1.6

0.9

1.12

0.1

4.22

0.25 0.25 0.25

0.2 0.2 0.2

0.15 0.15 0.9

0.2 1.6 1.4

0.1 0 0.05

0.9 2.2 2.8

0.4

0.08

0.15

0.6

0.3

1.53

0.5 0

0.4 0

1.2 0

1.6 0.6

0.8 0.1

4.5 0.7 2.896923

Factors

Others

LIC of India

Salary Monetary Reward Social

2.95

5.15

3.48 3.92

2.06 3.1

Recognition Career Prospects Monetary Security Job Satisfaction Decision Making Authority Other Benefits Work Culture Relationship with the Seniors Job Recognition Nature of Job
1.9 1.53 1.95 2.3 2.2 0.9 2.2 2.8 2.7 3.5

2.15

1.6

1.7

4.22

2.55 0.7 2.723077

4.5 0.7 2.896923

Sales force satisfaction level Of Other Life Insurance Companies

Level Very satisfied Salary Monetary Reward Social Recognition Career Prospects Monetary Security Job 0% 00% 12% 20% 00% 5% 10% 30% 32% 40% 30% 10% Satisfied Neither Satisfied nor Dissatisfied 50% 35% 30% 30% 40% 30% Diss atisfi ed 30% 35% 16% 10% 30% 45% Very Dissatisfi ed 10% 00% 10% 10% 00% 10%

Satisfaction Decision Making

5%

00%

15%

70%

10%

Authority Other Benefits 00% Work Culture 5% Relationship 5% with the Seniors Job Recognition Nature of Job 5% 5%

00% 5% 5%

15% 5% 10%

85% 70% 50%

00% 5% 30%

5% 5%

5% 40%

5% 30%

80% 10%

Nature of Job

Job Recognition Relationship with the Seniors Work Culture

Other Benefits Decision Making Authority Job Satisfaction

Very Dissatisfied Dissatisfied Neither Satisfied nor Dissatisfied Satisfied Very satisfied

Monetary Security

Career Prospects

Social Recognition

Monetary Reward

Salary
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Level

Very satisfied

Satisfied

Neither Satisfied nor

Diss atisfi

Very Dissatisfi

Salary Monetary Reward Social Recognition Career Prospects Monetary Security Job Satisfaction Decision Making Authority Other Benefits Work Culture Relationship with the Seniors Job Recognition Nature of Job

0% 00% 12% 20% 00% 5% 5%

10% 30% 32% 40% 30% 10% 00%

Dissatisfied 50% 35% 30% 30% 40% 30% 15%

ed 30% 35% 16% 10% 30% 45% 70%

ed 10% 00% 10% 10% 00% 10% 10%

00% 5% 5%

00% 5% 5%

15% 5% 10%

85% 70% 50%

00% 5% 30%

5% 5%

5% 5%

5% 40%

5% 30%

80% 10%

N=100

Level

Very satisfied
0

Satisfied

Neither Satisfied nor Dissatisfied

Diss atisfi ed
4 0.6

Very Dissatisfi ed
1 0.1

Averag e Total/N
6.9 2.95

0.4 1.2

1.5 1.05

Salary Monetary Reward

0.6

1.28

0.9

0.7

3.48

Social Recognition Career Prospects Monetary Security Job Satisfaction Decision Making Authority Other Benefits Work Culture Relationship with the Seniors Job Recognition Nature of Job
0.25 0.2 0.15 1 0.3 1.9 0 0.25 0.25 0 0.2 0.2 0.45 0.15 0.3 1.4 1.7 1.4 0.1 0 0.05 1.95 2.3 2.2 1 1.6 0.9 0.32 0.1 3.92

1.2

1.2

0.2

0.1

2.7

0.25

0.4

0.9

0.6

2.15

0.25

0.45

0.9

0.1

1.7

0.25 0

0.2 0

1.2 0

0.1 0.6

0.8 0.1

2.55 0.7 2.72307 7

N a ture o f J o b J o b R e c o g nitio n R e la tio ns hip w ith the S e nio rs W o rk C ulture O the r B e ne fits D e c is io n M a k ing A utho rity J o b S a tis fa c tio n M o ne ta ry S e c urity C a re e r P ro s p e c ts S o c ia l R e c o g nitio n M o ne ta ry R e w a rd S a la ry 0

0 .7 0 .7 2 .5 5 1 .5 3 1 .9 2 .2 2 .2 2 .3 0 .9 1 .9 5 1 .7 1 .6 2 .1 5 2 .7 3 .1 2 .0 6 3 .5 4 .2 2 2 .8 4 .5

LIC o f In dia O thers

3 .9 2 3 .4 8

2 .9 5 1 2 3 4 5

5 .1 5 6

Chapter 6

Benefits of the Study

Findings of the study is extremely useful for the companies like LIC of India and other Life Insurance companies. It is observed that large number of carrier agents of LIC of India and Private Insurance Companies switch over to other professions because they find their job extremely difficult. Recent researches have clearly revealed that motivation level of sales agents of these companies is not up to the level and that needs to be improved . The presented research work aimed at delineating the areas where these employees found to be dissatisfied. In this context this research work is very valuable for LIC of India and other life insurance companies that they would come to know the critical areas where focus is needed for motivating the sales force and reducing the resentment level of their sales personnel. The present work provides a very valuable solution to the sales managers of these companies in form of specific motivational tools and techniques for their sales force. In India Life Insurance products are meant for providing economical security to the millions of people. If sales force is fully motivated to achieve its target the national goal of bringing 80% of our population under insurance coverage can be achieved. Further, the entire research work is extremely useful for me. Being a student of sales management I can learn how to keep sales personnel motivated and manage them to get the best out of them. That means, the entire research work is a very effective practical tool for enhancing my managerial skills.

Chapter 7 Limitation of the study

Sample size taken for the survey was very small. It is unlikely that such a small sample size reflect the mind set of all the life insurance sales agents working all over the country. It was an academic research work, carried out under academic course curriculum using personnel resources. Therefore this project has serious time and cost constraints that might negatively affect the quality of the research work. Findings of the study is more applicable for the sales persons of jamshedpur only and may not be applicable in other areas because the entire sales/force survey was conducted in jamshedpur only.