JAPEA Project Report (Final Draft)

8/6/2019 JAPEA Project Report (Final Draft)

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CONFIDENTIALITY STATEMENT

The information, data, and drawings embodied in this project report are strictly

confidential and are supplied on the understanding that they will be held confidentially

and not disclosed to third parties without the prior written consent of the authors of this

document.


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LETTER OF TRANSMITTAL

May 6, 2011

Prof. Raheela Zulfiqar ,

National University of Modern Languages.

Dear Miss Raheela Zulfiqar,

We are submitting to you the report, due June 06, 2011, that you requested. The report

is about Training Needs Assessment and Training Program. The purpose of the report

is to inform you about the Training practices and Assessment Mechanisms in practice.

The content of this report targets the key trends of Training Needs Assessment,

Applications and Outcomes in Business Sector of Pakistan. If you have any questionsconcerning our research and project please feel free to contact.

Yours Sincerely;

Ali Raza,

Ahsan Tanveer,Mudassir Ali,Syed Ali Hassan,

Ali Akbar.


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ACKNOWLEDGEMENT

Dear Reader,

I would like to thank ALLAH Almighty, for finally making our efforts worthwhile. We arealso thankful to Miss RAHEELA ZULFIQAR, course instructor of Job Analysis andPerformance Appraisal and Evaluation, National University of Modern LanguagesLahore for her amiable support and guidance in completing this project. It is due to herthat we had the opportunity of learning how to carry out and conduct a Training andDevelopment Project. This report is about Training Needs Assessment with Applicationsand Outcomes. This report will help everyone in enhancing Training and Development

Programs and creative skills in thepractical scenario.


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This page is left intentionally with students name & roll numbers for

Teachers evaluation.

Ali Raza MBA-4-B(Morning) L11066

Ahsan Tanveer MBA-4-B(Morning) L11083

Mudassir Ali Khan MBA-4-B(Morning) L11069

Syed Ali Hassan MBA-4-B(Morning) L11095

Ali Akbar MBA-4-A(Morning) L11096


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C O N T E N T S

T o p i c P a g e

Executive Summary 6

Introduction 6

Mission 7

Vision 7

Corporate Information 8

Core Values 9

Insurance History & Scope with Islamic Reference 10

Individual Takaful Plan 13

Group Takaful Plan 15

The Featured Department 16

Tool Used for Training Need Assessment 17

Sample Questionnaire/Form 18

Area Highlighted for Training 19

Training Plan 21

Training Module Samples 22

Outcomes/Benefits 23

Evaluating of Training Program 24

Conclusion 25


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Executive SummaryInsurance Companies have nourished and flourished over the years in Pakistan and

leading to new trends in the industry. Dawood Family Takaful Ltd (DFTL) is amongst the

pioneers in the field of Family Takaful business in Pakistan. Family Takaful (or Islamic

Life Insurance) is a new field, recently introduced by Securities & Exchange

Commission of Pakistan. We focused the _ department and used our research tools to

assess the training needs there. In this particular context we sorted some areas and as

per that we designed modules and then their expected outcomes as well.

We found that this enterprise is a solicitor and a striving firm for mechanisms and trendswhere Islamic provisions can be used and applied for the Insurance School of thoughts.

The plans and projects of the company are splendid and there is a long way to go to

become the ultimate choice for the seekers.


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Introduction

Dawood Family Takaful Ltd (DFTL) is amongst the pioneers in the field of Family

Takaful business in Pakistan. Family Takaful (or Islamic Life Insurance) is a new field,

recently introduced by Securities & Exchange Commission of Pakistan. At DFTL we

have a vision to be the preferred provider of Islamic financial protection services.

We aim to provide these services based on Islamic values. We strive to help our valued

customers/partners by establishing savings and protection funds in a view to comfort

their loved ones. The pro-active measure ensures them security and certainty as it

provides monetary relief in the event of a misfortune, further it creates a habit of saving

amongst one customer/ partners. This, we believe, underlines the importance of our

mission.


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Mission

To be recognized as a reputable, profitable, Shariah driven Family Takaful operator

offering innovative financial solutions to its clients through best in class talent,

technology and distribution power.

Vision

The company will strive to become the Takaful partner of choice in pakistan catering to

the financial protection, long term savings, retirement and financial planning needs of

individuals, businesses and the public sector, in full conformity with Shariah priniciples.


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Corporate Information

Board ofDirectors Mr. Abbas Qurban ChairmanDr. Bakht Jamal Shaikh Chief Executive OfficerMr. Tahir MehmoodMr. Syed Ishtiaq HussainMr. Muhammad Rizwan ul HaqueMr. Muhammad Jamil Ahmed QureshiMr. Mir Javed HashmatMr. Rizwan Ahmed FaridShariah Supervisory Board Professor Mufti Munib-ur-Rehman ChairmanMufti Syed Zahid SirajMufti Syed Sabir HussainAudit Committee Mr. Abbas Qurban ChairmanMr. Syed Ishtiaq HussainInvestment Committee Mr. Muhammad Jamil Ahmed Qureshi ChairmanMr. Mir Javed HashmatMr. Muhammad Rizwan-ul-HaqueDr. Bakht Jamal ShaikhMr. Nayyar HussainMr. Ghazanfar ul IslamChiefFinancial OfficerMr. Ghazanfar ul IslamCompany Secretary Mr. Fahad AlamStatutory Auditors KPMG Taseer Hadi & CoChartered Accountants

Internal Auditors BDO Ebrahim & CoChartered AccountantsShariah Auditors Ernst &Young Ford Rhodes Sidat HyderChartered AccountantsAppointed Actuary Mr. Shujat Siddiqui, MA, FIA, FPSA

Akhtar & Hassan (Pvt) LimitedLegal AdvisorNishtar, Zafar & Malik

Advocates and Legal ConsultantsShare RegistrarFD Registrar Services (SMC-Pvt) Limited17th Floor, Tower A, Saima Trade Towers,I.I. Chundrigar Road

Karachi-74000Bankers Dawood Islamic Bank LimitedMeezan Bank Limited

Al Baraka Bank Pakistan LimitedDubai Islamic Bank LimitedRegistered office & Head office 17th Floor, Tower A, Saima Trade Towers,I.I. Chundrigar Road Karachi.Website www.dawoodtakaful.com


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Core Values

Our values throughout the entire organization. These Principles will guide us to succeedin our business, and will serve us well ahead into the future - from day -to-day businessoperation to product development and customer service.

Islamic Values:

We are establishing a fully moral and ethical Company whose people are strong inreligious values and live by the highest ethical standards.

Our Company:

We are building a Team that takes personal responsibility for the delivery of ourservices and promises to our participants and business partners.We shall consciouslyseek to develop our staff and consultants in their chosen careers and instill in them asense of pride and ownership in the Company.

Financial Strength:

We strive to earn the confidence of our participants by building a reputation for fair andprompt claims services and ensuring the financial stability of the Company. We believe

that these form the foundation of their security.

Customer centric:

We believe that by being pro-active and meeting the changing needs of our participantsthrough value-added products and services, we will meet the aspirations of all ourstakeholders.

Quality Culture:

We believe in doing the right things right the first time, and every time. Quality and

continuous improvements shall be the key drivers in all our management processes.


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Insurance, History and Scope With IslamicReference:

Insurance, in law and economics, is a form of risk management primarily used to hedgeagainst the risk of a contingent loss. Insurance is defined as the equitable transfer of therisk of a loss from one entity to another in exchange for a premium. An insurer is acompany selling the insurance. The insurance rate is a factor used to determine theamount called premium, to be charged for a certain amount of insurance coverage. Riskmanagement, the practice of appraising and controlling risk has evolved as a discretefield of study and practice.

History:

Insurance appears simultaneously with the appearance of human society. We know oftwo types of economies in human societies: money economies (with markets, money,financial instruments and so on) and non-money or natural economies (without money,markets, financial instruments and so on). The second type is a more ancient form thanthe first. In such an economy and community, we can see insurance in the form ofpeople helping each other. For example, if a house burns down, the members of thecommunity help build a new one. Should the same thing happen to one's neighbor, theother neighbors must help. Otherwise, neighbors will not receive help in the future. Thistype of insurance has survived to the present day in some countries where modernmoney economy with its financial instruments is not widespread (for example countries

in the territory of the former Soviet Union).

The Greeks and Romans introduced the origins of health and life insurance in 600 ADwhen they organized guilds called "benevolent societies" which cared for the familiesand paid funeral expenses of members upon death. Before insurance was establishedin the late 17th century, "friendly societies" existed in England, in which people donatedamounts of money to a general sum that could be used for emergencies. Insurancebecame far more sophisticated in post-Renaissance Europe, and specialized varietiesdeveloped.

The first insurance company in the United States underwrote fire insurance and was

formed in Charles Town (modern-day Charleston), South Carolina, in 1732. BenjaminFranklin helped to popularize and make standard the practice of insurance, particularlyagainst fire in the form of perpetual insurance. In 1752, he founded the PhiladelphiaContribution ship for the Insurance of Houses from Loss by Fire. Franklin's companywas the first to make contributions toward fire prevention. Not only did his companywarn against certain fire hazards, it refused to insure certain buildings where the risk offire was too great, such as all wooden houses. In the United States, regulation of theinsurance industry is highly Balkanized, with primary responsibility assumed by


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individual state insurance departments. Whereas insurance markets have becomecentralized nationally and internationally, state insurance commissioners operateindividually, though at times in concert through a national insurance commissioners'organization. In recent years, some have called for a dual state and federal regulatory

system (commonly referred to as the Optional Federal Charter (OFC)) for insurancesimilar to that which oversees state banks and national banks.

Insurance in Pakistan:

Pakistan is in the process of reshaping its economy to meet the challenges of a globalmarketplace. The government has introduced a range of reforms designed to promoteand consolidate Pakistans position as an emerging market in the region. The changeshave resulted in a deregulated and liberalized financial sector marketplace.

Pakistan's life insurance sector, nationalized in 1972, operated under the aegis of the

State Life Insurance Corp. and Postal Life Insurance until 1992, when the governmentopened it to private sector participation. Foreign companies are no longer barred fromthe life insurance business, but they are restricted to minority ownership. Privatecompanies function in nonlife insurance areas, but the government insurance businessis controlled by the National Insurance Corp. One of the state's first steps was tostandardize and reduce premium rates and to encourage coverage among a widersegment of the population. In 2001, there was US$$168 million of life insurance writtenin Pakistan.

Although filing of rates is no longer required, there are, however, separate parts in theOrdinance on Market Conduct & Intermediaries which lay down the

duties/responsibilities of Direct Insurance Companies and of Intermediaries. Thedevelopments in the regulatory environment in Pakistan are in line with those in theInternational markets. Compliance with regulations is becoming exceedingly important.

Islamic Insurance:

Ibn Abidin (1784-1836) was the first scholar in the Muslim world to discuss the meaningand legal character of insurance Islamicity of insurance has been under discussionsince then. Opinions regarding legitimacy, adoption, and adaptability of insurance arenumerous. Recently, however, a consensus was emerging for adapting insurance in thename of takaful and solidarity. As a result, several Islamic takaful and solidarity

companies have been established since 1979.

A prime purpose of Takaful system and its products is to strike the right chord withMuslim customers who may find conventional products unacceptable and buy themreluctantly. The takaful system and product may be appealing to them.

The global takaful premium was US$ 1.3 bn. in 2002, although this excludes premium inIran. Including Iran, the figure was US$ 2.1 bn. It is estimated that about 40% of global


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of global takaful business relates to family takaful. In 2002 there were an estimated 41companies offering Islamic Insurance (either as takaful companies or through Islamicwindows) in some 23 countries around the world. The number of takaful companiesmore than doubled to 87 companies in just four years (by mid 2006) across 29

countries.

In a new report from Celent, An Overview of Islamic Insurance: The potential for takafulis enormous given that insurance penetration in most Islamic countries does not exceed1% of gross domestic product. Many of the challenges facing takaful operators arestrategic. This market is trying to establish itself. While skills and resources can beborrowed from conventional insurance markets, there is significant investment requiredcreating the business.

Takaful in Pakistan:

The takaful market is still in a formative stage andmarket projections estimate growth rates between15% and 20% over the next 10 years, reachingUS$7.4 billion in premium by 2015. Withchallenges around customer service andproductivity, technology can enable this growingindustry through its formative stage.

Pakistan is among the top 10 most populous nations in the world. This makes it a very

fertile market for Takaful, one with some interesting challenges. Takaful is the latestwave in financial protection. Pakistan saw its first Takaful operator, in the Generalside, start in 2006. Since then, another two operators in General and two in Family haveentered the picture. Dawood Family Takaful being the most recent entrant is the onlyPakistani Owned Takaful Company and is highly capitalized. Takaful is not just anothertool for risk mitigation and financial protection. Rather, it is a system which works as asource of good for those that use it and the community at large. Tools like these arecritical for developing nations, especially those seeing rapid economic growth.Increasing personal debt, the widening divide between the haves and have-nots, andother such issues regularly plague those in rapidly growing developing nations. Pakistanis one of those countries.

To truly comprehend the opportunities for Takaful in Pakistan, we need to see wherethe present insurance sector stands and. The best way to understand this by comparingit to another nation which shares many traits with Pakistan. India, a much largerneighbor, has an insurance penetration of 4.8%, against Pakistans 0.8%, and itsinsurance density is US$38.40, against Pakistans US$5.90. These values make it veryclear that there exists a significant gap in Pakistan for financial protection tools. As weknow, achieving expectations is not as easy as formulating them.


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There are significant challenges for Takaful in Pakistan.

Individual Takaful Plans

These are investment -linked products on individual basis with regular contibutionseither monthly, quarterly,half yearly or yearly and payable for a period of 10 - 30 yearsbut subject to maximum age 65 or 70 at maturity (according to types of products).

The contributions paid are allocated into Participant Investment Account (PIA) andParticipant Takaful Fund (PTF). The PIA shall be invested in any SHARIAH funds ofchoice managed by the Company, and payable to the participant upon surrender or atmaturity. The amount allocated into PTF (Waqf fund) is considered asTabarru (donation) for the purpose of providing Takaful benefits in case ofdeath/disablement of any participant.There are four different types of products available to suit the various needs of eachparticipant. Each product is competitively designed to meet the demands of presentmarket.

Sukoon:

The term of contribution payment is limited to either 10 or 15 years, and maturity age ateither 60 or 65. It provides you with endowment benefit at maturity or in case of earlierdeath/disablement, pays such benefits to your dependents. It may be enhanced byattaching optional rider benefits. This product is suitable for planning of retirement.

Salamti:

The term of contribution payment is at least 10 years and up to maturity age of 70. Itpays such financial benefitsto your dependents in case of earlier death/disablement. It may be enhanced byattaching optional rider benefits.Upon maturity you will entitle to payment of your accumulated investments from theSHARIAH funds. Thisproduct is suited for family financial protection plan. It is also sold through corporatechannel.


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Samar:

It is a unique plan where the benefits are assigned to a named child for the purpose ofeducation/marriage. The contribution term is at least 10 years up to maturity age of 65.In case of earlier death/diablement the assigned benefits will be payable in favor of thechild after attaining the age of 18. It is a comprehensive product with necessary built-inrider benefits. Upon survival to maturity you will entitle to payment of your accumulatedinvestments from the SHARIAH funds.

Kafeel:

This plan is specially designed for Banca-Takaful distribution channel. The minimumcontribution term is 10 years up to maturity age of 70. It has a unique feature where theprotection element (or benefits payable in case of earlier death/disablement) is initiallylow in the 1st year of participation which generally obviates the need for underwritingrequirements at entry. Subsequently the protection element is increased to its equitablelevel in 2nd year, and thereafter up to maturity you will entitle to payment of youraccumulated investments from the SHARIAH funds.


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Group Takaful Plans

Group Credit Protection:Under Group Credit Takafuleach borrower of the Participant is covered for outstandingbalance of financing. The compensation due to the Participant is the scheduled amountoutstanding on the date of death of the borrower.This Plan is suitable for banks, financial institutions, and corporates which providefinancing facilities for house building, purchase of conveyance, purchase of householditems, or for any other purposes.

Group Term Family Takaful:

Group Term Takaful provides protection to the Participants employees in the event ofdeath due to any cause. They will be covered 24 hours a day anywhere in the world.The sum covered would either be a fixed amount for everyone, or determined accordingto some agreed category. Most employers tend to link amount of coverage withemployees designation or salary, whereas organizations would normally provide equalamount irrespective of membership status. The cover is provided without ascertainingthe state of each persons health condition up to certain amount of sum covered (free-cover limit), beyond which he/she will be medically examined.

Group Personal Accident (Protection):

This product has been developed to provide economical coverage to participants. Underthis cover if any person covered dies due to accidental means within ninety (90) days ofsuch accident and sustained injuries are solely and independently caused by external,violent and purely accidental means, compensation will be paid to the Participant forbenefit of his/her beneficiaries.

Group Pension Plan:

The policyholder contributes to the plan , the money is invested and a fund is built up.The amount of pension payable when the policyholder retires is dependent upon:

y the amount of money paid into the scheme;y how well the investment funds perform; andy the 'annuity rate' at the date of retirement. An annuity rate is the factor used to

convert the 'pot of money' into a pension.


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The Featured Department

The featured department for the sake of our project is the Sales Department. The

reason for doing so was that we found the decrease in sales volume and it grabbed our

attention and we planned to pursue the Sales people in this context. Moreover the

decrease in sales was not just the issue we wanted to get the reason behind it as well.

So for doing that we took the sales executives team in to consideration to start our work

as we wanted to see what is making Dawood Takaful going less on sales and we wish if

we could fix that problem by eliminating the missing thing in the whole system.

Following people helped us a lot in carrying on things smoothly

Dr. Syed Arif Hussain Head of Group Marketing, SVP

Dr. Arif is an MBBS. He also holds an MBA in General Management. He hasvast experience of marketing and sales of group insurance products, as well asunderwriting of Group Life & Individual Life. Dr. Arif has held various seniorpositions in State Life Corporation, which is the largest life insurer in Pakistan.

Mr. Tasawur Ali Manager Training & Development

He is a lecturer & trainer by profession since 1999. His diverse teachingexposure began from Academic teaching of students at Intermediate andUndergraduate levels. He provided Corporate Training to companies like UBL,SSGC, and PIA in business communication skills. He has also taught a widerarray of topics related with Islamic Financial Concepts, Marketing Activity forTakaful Consultants with different Takaful firms. He has authored several booksand professional manuals related to academic and corporate studies.


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Tool Used for Training Needs Assessment

Before starting the TNA lap, we first understood the business correctly. We went

through the company operations, history, culture and most important the products that

are being offered by the company. As discussed earlier we were attracted by the

decrease in sales volume that drove as to find out the real issue and fix it by our training

program. For the sake of Training Needs Assessment, as a matter of fact personal

observation was always there for our help but to be of a greater worth we started the

black and whilte work as we distributed the questionnaires that we designed specially

for Dawood Takaful Marketing and Sales Department after getting a long hold of thewhole situation. The questionnaire was designed by keeping all the implications in to

consideration and what was at the back end, the basics. The questionnaire was

designed after long hours of discussions, analysis, reports, suggestions, advices and

keeping all things in one bucket we came up with one idea, the sales guys need a

refresher, a break with add-ons of basics and crux of the business.

Sample Questionnaire/Form

Sales StaffTraining Needs Analysis:

In the questionnaire below, place a check mark in the column that reflects employees

current level of skill or ability for each skill listed. Rank skills on a sliding scale, with 1being poor or beginner-level skills and 5 being strong skills or more advancedexperience in that area. Employees responses will help us determine their current skillset, so we can plan the most effective training program to help employees excel at their

job.


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Sales Skills 1weak2 3avg. 4 5strong

Ability to qualify buyers quickly

Identifying customer needsIdentifying customerobjections

Overcoming customerobjections

Prospecting / cold contacts

Conducting presentations

Closing the sale

People / CommunicationSkills

1weak2 3avg. 4 5strong

Listens attentivelyShows enthusiasm on thephone

Shows enthusiasm face-to-face

Friendly / approachable

Polite with customers &management

Teamwork

Understanding customersPOV

Building a rapport withcustomers

Ability to assist / train others

General Business Skills 1weak2 3avg. 4 5strong

Goal-oriented

Able to execute managerialorders

Skill in using the phonesystems

Order entry skills

Interest in personaldevelopment

Shows up to work on time(reliable)

Understands financial goals


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How to Use this Training Needs Analysis Questionnaire:

Whenever were conducting a training needs analysis, were looking to evaluate thecurrent skills of our staff so we can figure out what areas they need the most training in.Having a proper training plan in place means that workers can work more productivelyand efficiently, because theyll have the skills they need to get the job done right.

After distributing a training needs analysis questionnaire like the one above, we have toanalyze the results.

The first step of doing that is deciding which of the skills listed are the most important toour business. Mark them or highlight them. Then look at those most important skills andsee which of them has the lowest ranking based on employee feedback (the most 1sand 2s for example). These should be our priority areas for employee training. Theyrethe weakest skill sets in the most important areas for our company.

Once weve taken care of training in those areas, we can decide if the questionnaireresults show training in other, less important, areas is also worth pursuing.

Areas Highlighted for Training

As we discussed earlier, the driving force behind choosing the particular department

was the decrease in sales volume. After a hectic span of analysis and results of the

questionnaires and feedback from the employees at the sales department we found that

there is no lack of competency, product knowledge, incentives, and training sessions.

The missing thing was staying away from the basics.

Apart from this specific project, we found this deprivation in various establishments

where people working are not lacking in anything but have stayed very far away from

their basics and eliminating the nitty-gritty is never gonna work. We know it as an

ultimate truth that the provisions of Human Resource Management start from


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understand your business. Though it looks quite ordinary but in reality it has a great

scope than everything as by sticking on the basics you can win the world.

So we found out a few areas that we highlighted which were

y Customers and their types

y Mind set of customers

y Product knowledge accuracy

y Value added phrases practice

y Class, Courtesy and co-operation

y Competitors products and their knowledge

y Customer care and service skills

y Negotiation techniques


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Training Plan

The training plan was consisted of 6 modules with the areas highlighted and then theoutcomes that are expected.

The training plan is expected to be as follows:

Orientation

First session (Module 1)

Second Session (Module 2, 3)

Third Session (Module 4)

Fourth Session (Module 5,6)

Fifth Session (Short discussion on modules 1-6)

Sixth Session (Evaluation and Feedback)

Seventh Session (Evaluation of the whole program after application)


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Training Module Samples

Module 1: INTRODUCTION

Customer:

A person, company or other entity which buy goods or services produced by other

person, company or other entity.


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Module1 Contd.

Types OfCustomers:

Loyal Customers

Discount Customers

Impulse Customers

Need Based Customers

Wandering Customers

Module 2: GETTING STARTED

Information OfThe Customer

Product Knowledge

Customer Preferences


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Outcomes/Benefits

The modules designed in this training program are result oriented and the expectedresults/benefits or outcomes are as follows:

y Customer types knowledge

y Negotiation Skills

y Product Knowledge Upgradation

y Insights to Customer mind sets

y Customer retention Skills

y Customer focus

y Exposure enhancement

y Competitors Knowledge

y Overcoming Communication Gap

y Customer Needs and Wants Understanding

y Market Knowledge

y Customer winning skills

y A detailed understanding of the business

y Settlement and reconciliation

y Complains and their responses

y Customer satisfaction

y Insights to the trends in the market


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Evaluation ofTraining Program

For the sake of evaluating the whole training program a small plan is there which is as

follows.

Feedback forms to employees

Mechanism created by Sales Department

Target Setting

Market Surveys

Potential Customers Targeted

Results as per Turn Around Time

Results

Comparison of Sales (Previous) and Current

Final feedback and Evaluation Session and Questionnaires


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Conclusion

After making complete analysis and overview ofSales Department we come to knowthat their sales are going down. Thats why we conduct Training Need Assessment fortheir employees of sales department and we found that there is huge communicationgap between employees and customers and lack of conceptual and human skills inemployees which become hindrance in customer retention.

Documents

JAPEA Project Report (Final Draft)