Employee Satisfaction in Efu Life Insurance

Letter of Acknowledgement

This report is based on the analysis of employee satisfaction of “EFU General Insurance Limited”. It is our fortune to have personnel of “EFU General Insurance Limited” whose corporation and guidance contributed tremendously to complete this project.

It is our pleasure to have the most valued and respected facilitator Mr. Motiur Rehman. The substance that we have gained during the semester and by assignments from him was an introduction for us in the field of Organizational Behavior, we certainly believe in its function which would be benefited through out our career in an organized manner.

Further more we will like to take this opportunity to thank all the employees at EFU General Insurance Limited for their help and support with they have extended to us during our survey and interviews.

Letter of Authorization

Dated: 22nd April 2007

It is our honor to prepare a report on Employee Satisfaction Report of “EFU General Insurance Limited”, which was assigned to us by our respected teacher Mr. Motiur Rehman.

It was a pleasure creating this report; here we would like to take the opportunity to thank our course instructor Mr. Motiur Rehman for all his support and guidance for our Organizational Behavior course.

Rana Faisal
Khurram Adil Sattar
Tariq Gul-e-Anwer
Nisar Abbas Malik
Urooj Mughal

Executive Summary

The report is prepared on M/s. EFU General Insurance Company Limited. The firm was incorporated in Pakistan as a public limited company and its shares are quoted on all the Stock Exchanges of Pakistan. EFU is a huge company with almost 1000 employees working in more than 60 branches all over Pakistan and enjoys good reputation in the market. In 2007, the company is celebrating its Platinum Jubilee making the 75th year of its existence and become 12.2 Billion company.

The contents of this report indicates the Employee Satisfaction as an integral part of Organization Culture that refers to a system of share meaning held by members so as to distinguish the organization from other organization.

It tells that how the organization is structured and how employees are being treated, trained in order to achieve individual goals so in turn individual goals collectively achieve overall organization goals and target. EFU structure is like family based culture, where every employee is considered to be a member of the family and the concept of boss can’t be seen therein.

The firm is providing number of training programs and workshops to their employees in order to enhance the abilities, knowledge and skills. There is a open door policy i.e. managers doors are always open for subordinates, lowest employees turnover, effective communication throughout the organization and employees are more satisfied and loyal towards the organization.

TABLE OF CONTENTS

|S.N |TOPIC |PAGE |
|1. | |Executive Summary |3 |
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|2. | |Research Road-Map |5 |
|3. | |Company Profile |6-7 |
|4. | |Company Background |9 |
|5. | |Corporate Profile |10 |
|6. | |EFU Group of Companies |11 |
|7. | |Vision and Mission |12 |
|8. | |Organization Structure |13 |
|9. | |Designation Hierarchy |14 |
|10. | |Questioners: | |
| | |Common Questions |15-16 |
| | |Broad Questions |17-18 |
| | |Specific Questions |19-31 |
|11. | |Recommendations |32 |
|12. | |Conclusion |33 |

Research Road-Map

Objective

The purpose of the research was to observe the level of job satisfaction in the employees of EFU General Insurance Limited.

Research Design

The report on Employee Satisfaction Level at EFU General Insurance Limited is a term assignment in our course of Organizational Behavior. It is a comprehensive report highlighting the management practices towards employees and the factors that helps their satisfaction at work place.

Sample Size

The sample size is 50 employees. Employees are selected from the different departments so to represent the entire population as correct as possible.

Research Instruments

A comprehensive questionnaire consisting of 30 questions were compiled and approved. All consisted of close-ended questions with four choices. Besides questionnaires, two following personal interviews were also conducted: ❖ Syed Shahid Hussain – Vice President Personnel & Admin ❖ Mr. Syed Anwer Hasnain – Assistant Vice President Motors

Limitations

❖ Since the time is a key factor in today’s world, therefore getting the questioners filled and interviews by taking shorter time of EFU personnel.

❖ Generally key persons are not willing share any negative aspect of their organization in front of management so 100% accuracy of data is not assured.

Research Findings

We found EFU an employer well liked and valued by its employees. Career Growth, Learning, Family Atmosphere, Freedom for new ideas and Decision Making are integrands in high satisfaction level among the employees.

Company Profile

Chairman

Rafique R. Bhimjee

Managing Director & Chief Executive

Saifuddin N. Zoomkawala

Directors

Sultan Ahmad
Abdul Rehman Haji Habib
Jahangir Siddiqui
Wolfram W. Karnowski
Muneer R. Bhimjee
Hasanali Abdullah
Taher G. Sachak

Corporate Secretary

Hasan Ali Abdullah

Legal Advisor

Mohammad Ali Sayeed

Senior Advisor

S.C. (Hamid) Subjallyu, A.C.I.I.

Advisor

Akhtar K. Alavi, A.C.I.I.
Naqi Zamin Ali

Audit Committee

Muneer R. Bhimjee
Taher G. Sachak
Abdul Rehman Haji Habib

Rating Agency

Insurer Financial Stength Rating: AA

Auditors

Gardezi & Co.
Chartered Accountants – Karachi

Website

www.efuinsurance.com

Registered Office

11/4, Shahrah-e-Pehlavi, Peshawar

Main Offices

EFU House
M.A. Jinnah Road, Karachi

Co-operative Insurance Building
23 Shahrah-e-Quaid-e-Azam, Lahore

Company Background

In the early 30s of the 20th century, under the inspiration of the Quaid-e-Azam Mohammad Ali Jinnah, there began to appear signs of economic renaissance of the Muslims of India. Shipping, Airline, Banking and Insurance companies made their debut.

In 1932, Mr. Ghulam Mohammad, a farsighted man, established Eastern Federal Union Insurance Company (EFU) with financial assistance from the Aga Khan III and the Nawab of Bhopal. Mr. Abdur Rehman Siddiqui became the founder chairman. The firm was originally registered at Calcutta and operated in India (undivided) and Burma.

In 1947, on the birth of Pakistan, EFU found a new home in a new country. In Pakistan, EFU rapidly established itself as a progressive and innovative insurer. It gave the emerging insurance industry the leadership, the manpower and the drive needed to grow in a situation where at one time, three-fourths of insurance was held by foreign companies.

By 1961, EFU had become the flag bearer of Pakistan's insurance industry on the world stage and the largest life company in Afro-Asian countries (excluding Japan) under the leadership of Mr. Roshen Ali Bhimjee. It remained so until 1972 when Life Assurance business in Pakistan was nationalized. Thereafter EFU operated solely as a General Insurance Company, and was subsequently renamed EFU General Insurance Limited. Now EFU General is the second largest non-life insurance company in the country and the mother company of other insurance organizations of EFU Insurance Group.

In June 1990 the Government of Pakistan decided to allow Life Assurance business in private sector also. On 18 November 1992, EFU Life was granted a license to carry on life assurance business. It started operations immediately with Group Life products and in March 1994 launched its Individual Life products.
EFU entered the field of life assurance with the focus on the changing needs of the population. The company is committed to provide its policyholders with solutions to the problems of today's complex and rapidly changing financial environment by introducing innovative and modern products.

In March 2000, Allianz Aktiengesellschaft (Allianz AG), a global leader in the insurance industry with an active presence in 70 markets across 5 continents and EFU Group signed a joint venture to form a new company for providing health insurance cover to the people of Pakistan. Allianz EFU Health.

Insurance Limited, approved by the Government of Pakistan, is the first specialized health insurance provider in the country and aims to play a pivotal role in developing the health insurance market in Pakistan. Traditionally the EFU name has become synonymous with progressiveness and prompts claim settlement and now the EFU being the largest insurance group provides a full range of general, life and health insurance services.

Corporate Profile

EFU is one of the few Pakistani organizations run totally by professional management and highly motivated field force.

Another unique feature of EFU is a voluntary review mechanism by professionals of international repute. The independent reviews by these professionals enable the company to keep abreast of international changes in the industry as well as ensure that management adopts the best international practices.

EFU gave the emerging insurance industry the leadership, the manpower and the drive needed to grow in a situation where at one time, foreign companies held three-fourths of insurance.
The Principal place of business is located at EFU House, M.A. Jinnah Road, Karachi, Pakistan with over 60 branches throughout the country.
Another pillar of EFU's strength is its very close and long-term (over 50 years) relationship with its main reinsurer, ‘Munich Re’, one of the largest reinsurance companies in the world.

EFU Group of Companies

|EFU GROUP – PAKISTAN’S LARGEST INSURER | |
|[pic] |EFU General Insurance Limited | |
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|[pic] |EFU Life Assurance Limited | |
| |ISO 9001 Certified | |
| |Pakistan’s largest private sector life assurance company | |
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|[pic] |Allianz EFU Health Insurance Limited | |
| |Pioneer and Leader | |
| |Pakistan’s only specialized health insurer | |

Vision Statement

Our vision is to be the first choice company for our customer, shareholders and employees. To achieve this we will be driven by an obsession to be better than the best in a continuous journey, not a destination.

At EFU first choice means a sustained commitment to meet and exceed stakeholder expectations. A will to go the “Extra Mile” to delight our customers with products and services that exceed their expectations

Mission Statement

We will manage our affairs through modern technology, collective wisdom and institutionalized leadership. We will be a respected, cultured and an educated company with a strong market position. Together with our customers, reinsures and employees we will achieve world class quality standards through continuous quality improvement. Achieve zero defects in everything we do.

We will do good business, with good clients and of the highest integrity. We will not compromise our principles and we will like to be known as a responsible corporate citizen aware of our obligation to the Government and the society we serve.

ORGANIZATIONAL STRUCTURE

Designation Hierarchy

Common Questions 1 to 3

Q.1) What is your gender?

|Male |Female |Total Sample Size |
|44 |06 |50 |
|88% |12% |100% |

Q.2) How long have you been working at EFU?

|1-3 Years |4-8 Years |9 Years abov3e |
|10 |24 |16 |
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Q.3) In which department do you work?

|Name of Department |Count |Percentage |
|MISC |10 |20% |
|Admin & Personnel |7 |14% |
|Human Resource Management |5 |10% |
|Accounts |5 |10% |
|Property |5 |10% |
|Marine |5 |10% |
|Investment |5 |10% |
|Motor |4 |8% |
|Real Estate |4 |8% |

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Broad Questions 4 to 6

Q.4) Everything about this company is focused on what our customer values?

|Strongly agree |Agree |Disagree |Strongly disagree |
|41 |9 |0 |0 |
|82% |18% |0 |0 |

The company values is to satisfy their customers by delivery superior services, according to the result of the questionnaire we have concluded that the path has not been changed yet and still the company is focusing to satisfy their customers and trying to give them services better than others do.

Q.5) I know the mission and goals of the company?

|Strongly agree |Agree |Disagree |Strongly disagree |
|44 |6 |0 |0 |
|88% |12% |0% |0% |

“An educated company with customers and employees together to achieve the world class quality with zero defects in whatever we do”

According to the results we have come up to a point that the employees are well known with the mission of the company and in fact it explicitly appears in the Financial Report and Web. Every employee is well focused on his responsibilities and goals which is then combined and makes it possible for achieving overall company’s goal.

Q.6) We use customer feedback / complaints to improve our services?

|Strongly agree |Agree |Disagree |Strongly disagree |
|32 |18 |0 |0 |
|64% |36% |0% |0% |

By looking at the results and the company’s growth in past few years that have reached till 12.2 billion in 2006, which clearly indicates that the company also emphasizes on customer feedback and complaints to improve their services, as the company mission also reflects that they are customer focused.

Specific Questions 7 to 30

Q.7) My job duties are precisely spelled out?

|Strongly agree |Agree |Disagree |Strongly disagree |
|37 |12 |1 |0 |
|74% |24% |2% |0% |

The response of this question was positive, it clearly means that the job descriptions for every employee is well defined so while working they don’t need to ask there immediate boss regarding and what and when to do.

Q.8) Employees here are given the authority to make the decisions when they need to make it?

|Strongly agree |Agree |Disagree |Strongly disagree |
|16 |28 |6 |0 |
|56% |32% |12% |0% |

As per the response of the question, we draw inference that company has given the authority to their employees to an extent linking with their designation. For example while interview we were informed that an employee of Manager grade who is dealing with the customer for the Insurance Policy which mark up @
5.5%, however upon customer request the manager has empowered to negotiate it @ 5%, beyond he has to consult his senior.

Q.9) Employees share experience to help each other?

|Strongly agree |Agree |Disagree |Strongly disagree |
|16 |31 |3 |0 |
|32% |62% |6% |0% |

The above statistics shows that there is a laid back approach at E.F.U insurance company. The seniors help the juniors with their experience and the juniors respect their seniors. It is a feeling of mutual respect among the employees. The productivity and efficiency of such firms is more as compared to the other firms, which have negative politics.

Q.10) Our seniors and managers are supportive?

|Strongly agree |Agree |Disagree |Strongly disagree |
|35 |13 |2 |0 |
|70% |26% |4% |0% |

The response of this question is on a positive side, which clearly indicates that the seniors and the managers are highly supportive and co-operative with there juniors and sub-ordinates. This side of the question reflects on the behavior of the managers when a junior need help or need support when committed a mistake.

Q.11) I have clear direction to accomplish the task given to me?

|Strongly agree |Agree |Disagree |Strongly disagree |
|28 |18 |4 |0 |
|56% |36% |8% |0% |

The result of this question clearly shows that every employee of the organization knows which direction to go if to complete his or her task. As we all know that every task is has different directions to follow and by knowing those direction before, it becomes relatively easy for one to complete his part of job.

Q.12) I am optimistic about my future at EFU Pakistan?

|Strongly agree |Agree |Disagree |Strongly disagree |
|29 |21 |0 |0 |
|58% |42% |0% |0% |

Again, the satisfaction level of employees with the job security and their future at EFU Pakistan shows almost 58%, which is very high. The employees are certain that they have future growth and high returns if they stay at EFU Pakistan for a long time.

Q.13) I can keep a reasonable balance between work and personal life?

|Strongly agree |Agree |Disagree |Strongly disagree |
|26 |18 |5 |1 |
|52% |36% |10% |2% |

When we talk about life we believe that nothing is perfect, but as we are going further onwards we see a perfect life of the people working in EFU Pakistan. The other good point about EFU Pakistan is that there is no such concept of over time as seen in other sectors such as Textile or Manufacturing companies therefore it is relatively easy for the employees to have a balance between there work and personal life i.e. they can plan their personal life as their working schedule is well known.

Q.14) I am encouraged to do things?

|Strongly agree |Agree |Disagree |Strongly disagree |
|32 |9 |9 |0 |
|64% |18% |18% |0% |

It is very amazing to see the above data on the positive side because mostly employees who work in manufacturing industries are more encouraged to do new things as it is a motivator for them. Surprisingly the same factor found here in EFU despite being a service industry where these activities are generally invisible.

Q.15) I am not afraid of making mistakes?

|Strongly agree |Agree |Disagree |Strongly disagree |
|15 |17 |7 |11 |
| | | | |
|30% |34% |14% |22% |

This question is very much similar to the above question and if the response of the previous question is positive then there is no doubt that the result of this will be positive too. The justification for the above statement is that if the employees are treated as sinners after committing mistakes then they will not work freely consequently this will affect negatively or becomes a de-motivator factor that further discourage the employee to do new things.

Q.16) I feel free to offer comments and suggestions?

|Strongly agree |Agree |Disagree |Strongly disagree |
|23 |26 |1 |0 |
|46% |52% |2% |0% |

The answer to this question can be verified by the responses of other questions like autonomy of decision-making and autonomy of creativity. None of the employees is afraid of speaking his/her heart out and giving suggestion, because of acceptability of new ideas at EFU Pakistan.

Q.17) There is adequate communication between departments?

|Strongly agree |Agree |Disagree |Strongly disagree |
|35 |14 |1 |0 |
|70% |28% |2% |0% |

The verification of this answer is that when you walk through EFU you will notice that there is not even a separation in between the department. Moreover, while interviewing, we came to know that for smooth communication the firm is using latest IT technology called intranet in which employees from different location and departments can exchange their views regarding day to day matters.

Q.18) Is EFU a career-oriented organization?

|Strongly agree |Agree |Disagree |Strongly disagree |
|29 |21 |0 |0 |
|58% |42% |0% |0% |

Since EFU is a fast growing company therefore it is more likely to be chosen as a career oriented organization. It can be also be judged by looking the feedback of the question. For example we can quote here that Mr. Arif has been working as a manager in EFU for the last 42 years, he started his career in EFU as a clerk and today enjoying the Managerial position.

Q.19) All employees are treated equally?

|Strongly agree |Agree |Disagree |Strongly disagree |
|28 |18 |4 |0 |
|56% |36% |8% |0% |

Employees at EFU are considered as assets and valued. Also as mentioned in the company’s mission that it is a company which focuses on customer satisfaction, to achieve this objective it needed to satisfy first their internal customers i.e. employees. If they do not treat their employees equally they won’t be able to get customer satisfaction.

Q.20) Training programs are held when new technology is introduced?

|Strongly agree |Agree |Disagree |Strongly disagree |
|44 |6 |0 |0 |
|88% |12% |0% |0% |

The concept of training programs for only new technology has been left behind. Now the company has reached at the stage they frequently organize number of training programs either on-the-job or off-the-job. For example whenever the any workshop is held by ICAP and PIM, EFU nominates it employees to attend these seminars to strengthen their skills and enhance knowledge and aware of new management trends to be applicable in near future.

Q.21) The opportunities are available to learn and grow?

|Strongly agree |Agree |Disagree |Strongly disagree |
|33 |16 |1 |0 |
|66% |32% |2% |0% |

As it has been mentioned in the analysis of previous question, there are tremendous opportunities for every individual to learn through various training program. Besides leaning, the firm provides growth opportunities through encouraging for attaining education such as ACII2 & FCII2 even the company bears all expenses for this incurred in due course.

Q.22) The Performance Appraisal System is fair?

|Strongly agree |Agree |Disagree |Strongly disagree |
|29 |17 |3 |1 |
|58% |34% |6% |2% |

The firm is following Annual Confidential Report (ACR) for assessing employees’ performance. The rating for assessing is being done throughout the year that is based on two factors. One is employees’ performance related to their work or task assigned to them and another is individual education. The more qualification the employees are educated the more they likely to get promoted.

Q.23) I get useful feedback on how I do my job that focuses on helping me and not t blame me?

|Strongly agree |Agree |Disagree |Strongly disagree |
|24 |22 |4 |0 |
|48% |44% |8% |0% |

The reason why such high percentage of people agreed on this question because it clearly mentioned in question # 10 wherein states that senior and manager are very supportive. So whenever an employee moving towards perform the task and seeks senior’s consultation then he get immediate feedback of his work which help him to perform the same with improved manners.

Q.24) EFU values their employees and give rewards on good performance?

|Strongly agree |Agree |Disagree |Strongly disagree |
|14 |28 |6 |2 |
|28% |56% |12% |4% |

There is a positive response of this question that EFU rewards its employees on both perspective i.e. education and performance. For example while interviewing we got know that an employee who successfully completed ACII2 he receives a gold medal named as Roshan Ali BhimJee.

Q.25) The company provide safe working environment?

|Strongly agree |Agree |Disagree |Strongly disagree |
|22 |27 |1 |0 |
|44% |54% |2% |0% |

The result for this is moderate neither satisfier nor dis-satisfier. Further to our visit there we analyze that the working environment is safe but not comfortable which support smooth flow of work, it was appear like employees were sitting to one another due to insufficient sitting place as compare to the staff strength.

Q.26) Salary is accordance with my job responsibilities?

|Strongly agree |Agree |Disagree |Strongly disagree |
|27 |21 |2 |0 |
|54% |42% |4% |0% |

The result of this is self explanatory. It’s really incredible that EFU is paying competitive salary to their employees and that is one of the biggest factor for employees job satisfaction as well as helps the management to retain them for longer periods. Although not only employees, EFU also benefits by paying the handsome salary because it enabling the firm to curtail cost of having new employees.

Q.27) I would recommend employment at EFU Pakistan to a friend?

|Strongly agree |Agree |Disagree |Strongly disagree |
|28 |22 |0 |0 |
|56% |44% |0% |0% |

A person only suggests something to others if he is satisfied with it himself and wants others to try it so that others may also enjoy it. It is obvious from the results shown in the table above that most of the employees would like their friends work for EFU because of its being a very accountable employer.

Q.28) This company operates ethically?
Q.29) This company believes in the sense of moral values?

|Strongly agree |Agree |Disagree |Strongly disagree |
|33 |17 |0 |0 |
|66% |34% |0% |0% |

|Strongly agree |Agree |Disagree |Strongly disagree |
|33 |17 |0 |0 |
|66% |34% |0% |0% |

EFU operates ethically because the top management has made it a point to promote ethics and moral values. Each and every individual at EFU knows the do’s and don’t in which the ethics and moral values are give the most priority. For e.g. Insurance company must be fair honest in compensating their customer against the claim they receive, over there EFU enjoys a high sense of moral value and operates ethically, each employee are aware that they are obliged for disbursement the insured amount positively rather than deducting any charges in the name of levies.

Q.30) what can EFU do to increase your job satisfaction?

|Name of Department |Count |Percentage |
|Job Rotation |16 |32% |
|Reduce Work Load |5 |10% |
|Other Responses |2 |4% |
|Faster Career Growth |10 |20% |
|Reconsider Salary |9 |18% |
|No Response |16 |32% |

Almost 32% employees strongly believe that job rotation will play vital to role to make them happy in their working. In fact the reason can that an employee will start feeling uncomfortable working on a same nature of work and limit his exposure to a certain task.

Recommendations

Although the result of the survey on Employees Satisfaction shows that EFU is a company that cares for his employees like a family and try its best to provide what its employees deserve, but there are still some following areas that needs attention:

Job Rotation

As it was explained in the related questions that the employees at EFU want the company to pay more attention on Job rotation because in many career orientated organizations it is been observed that job rotation is done at a regular basis so that employees don’t get fed up by doing a single nature of works for longer periods.

Desired Information
There is open communication and shared value systems, but it do not guarantee the availability correct information to make an effective decision. Instead to have too much information, the management need to emphasize on provide the right and accurate information so respective personnel can take better decision.

Remove Perceptual Differences
EFU is an equal opportunity employer and treated its employees equally, but during interview we aware of fact that employees there perceive differently regarding the performance management system. Here the HR department should give serious attention to identify the why employees perceive difference in this regards, then change their perception and to remove that grey area which causes such perceptions.

Conclusion

In this competitive and challenging era importance of employee satisfaction is essential because they are the assets and thrive to run an organization. Therefore it is necessary for firm to create an environment where employees feel secure enough to take risks and become innovative in pursuing quality, service and customer satisfaction. Companies provide people the opportunity for success as both team members and individuals. They strive to build long-term relationships with all employees and the local communities that have supported their success. It is a common believe that a satisfied worker was believed to be a productive worker.

In light of above, EFU is an organization that meets all the external and internal environmental challenges. To satisfy external customer they are in believe to satisfy first internal customer i.e. employees. If employees are happy it would enable for the firm to achieve its goals.

For the employees’ satisfaction, we conclude that EFU tries it best by providing job security, family atmosphere, safe working condition, training programs and workshops in order to enhance the abilities, knowledge and skills, open door policy i.e. managers doors are always open for subordinates, lowest employees turnover, effective communication throughout the organization, encouragement of new ideas, placement of suggestion boxes and rewards for successfully completion of studies such as ACII2 or FCII2.

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Reinsurance

Misc

Motor

marine

property

Training & Dev.

Personnel & admin

Real estate

Investment

Accounts

Operations

Finance

Chairman

Vice President

Executive Vice President

SEVP

Assistant Director

Director

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Asst. Vice President

Manager

Deputy Manager

Assistant Manager

Officer

Junior Officer

Superintend

Clerk