Page 1 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 259
Effect of Work Related Variables on Human Resource Development
Practices in Oriental Insurance Company Limited: A study of Regional
Offices in Punjab and Haryana
Dr. Shagun Ahuja
M.Com, PGDHRM, Ph.D
Assistant Professor, Department of Commerce
Rajiv Gandhi Government College, Saha, (Ambala)
ABSTRACT
The Oriental Fire General Insurance
Company Limited was incorporated at
Bombay on 12th September, 1947. To reflect
the gamut of the operations of the Company,
the name of the Company was changed in
May, 1984 from ‘The Oriental Fire and
General Insurance Company Limited’ to
‘The Oriental Insurance Company Limited’
(OICL) and at present the OICL is a public
sector Company. The Company deals in all
kinds of non life insurance business. The
HRD is a mechanism, which ensures the
development of employee’s dynamism,
effectiveness, competencies and motivation
in a systematic and the planned manner as it
has multiple goals which include
development of organizational climate
through employees’ competency and
improving their motivation.
INTRODUCTION
‘Human Resources’ are the most
important and valuable assets in any
organization. It is a well known fact that
only the effective employees can contribute
to the efficiency in the organization. The
competent and motivated employees can
make things happen and enable an
organization to achieve its overall goals.
Therefore, organizations continuously
ensure the dynamism, effectiveness,
competency and motivation of their
employees to remain at high levels. The
HRD is a mechanism, which ensures the
development of employee’s dynamism,
effectiveness, competencies and motivation
in a systematic and the planned manner as it
has multiple goals which include
development of organizational climate
through employees’ competency and
improving their motivation.
Employee requires a variety of
competencies in the form of knowledge,
Page 2 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 260
skills and attitude in the areas of technical
skills, human relation and conceptual areas
to perform different tasks and functions.
HRD aims to identify the gaps in the
competencies of the employees to perform
their present roles effectively and create
conditions to help them in bridging these
gaps through development of skills and
competencies. In the present days of
technological advancements and inter/intra
organizational competitions the nature of
jobs are constantly changing and have due
impact on business environment,
organizational goals, priorities, strategies,
customer expectation, technology, new
opportunities, new challenges, new
knowledge base etc. Due to these changes
employee’s competencies require change
and development on continuous basis for
effective job performance. Thus it is an aim
of the HRD to assess constantly the
competency requirements of different
employees to effectively perform the
assigned task and provide them the
opportunities for development of these
competencies. Further it also aims for
preparing the personnel for
roles/tasks/functions that they are required
to perform in the future as they go up in the
organizational hierarchy or as the
organization takes up new tasks through
diversification, acquisition, expansion,
modernization etc.
Yet another aim of HRD is to ensure
high morale and motivation among the
employees as morale and motivation ensure
involvement and commitment of employees
for performing job in the organisation.
Without motivation employees are not likely
to give their best to the organization as
besides having human relations and
conceptual competencies are not enough for
effective performance on the job. A passion
for working for the organization is required
to be developed as a ‘fire in belly’ has to be
kindled. As modern HRD practices it now
promotes team building and collaborative
climate, which requires building and
enabling organizational culture in which
employees make things happen.
Insurance is defined as a co- operative device to spread the loss caused by
a particular risk over a number of persons
who are exposed to it and who agree to
ensure themselves against that risk. The
business of insurance is related to the
protection of the economic nature of the
assets. The owner, to earn profits with their
use, purchases the assets. Each and every
asset has some defined lifetime and if the
asset is damaged before that lifetime due to
some accident or any other consequences,
Page 3 of 15
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 8
August 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 261
then owner has to suffer the loss of the value
of the asset as well as the benefits, which
accrue from that asset. Therefore, insurance
is that mechanism which protects the owner
from such adverse consequences. The
Oriental Fire General Insurance Company
Limited was incorporated at Bombay on 12th
September, 1947. The Company was
incorporated as a subsidiary of Oriental
Government Security Life Assurance
Company Limited, a pioneer among life
insurance companies registered in India with
the main aim of securing the community by
providing protection to liability and
property. To reflect the gamut of the
operations of the Company, the name of the
Company was changed in May, 1984 from
‘The Oriental Fire and General Insurance
Company Limited’ to ‘The Oriental
Insurance Company Limited’ (OICL) and at
present the OICL is a public sector
Company. The Company deals in all kinds
of non life insurance business. The business
of the Company varies from the small
insurance covers to insurance cover of big
projects. As the Government of India
undertaking, the Company enjoys the
reputation of possessing all round financial
strength as reflected by its capital base of
Rs. 80 Crores and reserves of Rs. 1000
Crores in the year 2002. The Company
progressed and was a close competitor for
the top position amongst general insurance
companies operating in India until it was
taken over by government and nationalized.
It created its position in the country by
providing dedicated insurance services to
the community. At the time of
nationalisation in 1973, the Company’s
Gross Direct Premium Income was Rs. 58
Crores and for the Financial Year 2006-07
the Company’s Gross Direct Premium
Income was Rs. 4020.78 Crores. The
Company is also known all over for its
underwriting expertise and professional
management. The Company has now grown
into a vast network of over 1000 offices – 18
Regional Offices, 257 Divisional Offices
and nearly 750 branches spread all over
India. The Company also operates in Nepal,
Dubai and Kuwait. It has a large reservoir of
manpower comprising of 20,266 employees,
a part from the agency force, the Company
also possesses the technical expertise and
financial capability to underwrite a vast
range of General Insurance Business
regardless of the complexities and
magnitude of risks involved. The Company
has a pre-efficiency of working hand in hand
with other agencies involved in socio- economic development of the country. Even
though OICL started functioning after
nationalization with the initial handicap of
shifting its Head Office from Bombay to
