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INTRODUCTION
Human Resource Development (HRD) is the framework for helping employees develop
their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, succession
planning, key employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most
superior workforce so that the organization and individual employees can accomplish
their work goals in service to customers.
Human Resource Development can be formal such as in classroom training, a college
course, or an organizational planned change effort. Or, Human Resource Development
can be informal as in employee coaching by a manager. Healthy organizations believe in
Human Resource Development and cover all of these bases.
Human resources is a term used to refer to how people are managed by organizations.
The field has moved from a traditionally administrative function to a strategic one that
recognizes the link between talented and engaged people and organizational success. The
field draws upon concepts developed in Industrial/Organizational Psychology and System
Theory. Human resources has at least two related interpretations depending on context.
The original usage derives from political economy and economics, where it was
traditionally called labor, one of four factors of production although this perspective is
changing as a function of new and ongoing research into more strategic approaches at
national levels. This first usage is used more in terms of 'human resources development',
2
and can go beyond just organizations to the level of nations [2]. The more traditional usage
within corporations and businesses refers to the individuals within a firm or agency, and
to the portion of the organization that deals with hiring, firing, training, and other
personnel issues, typically referred to as 'human resources management'. This article
addresses both definitions.
Development
The objective of human resources development is to foster human resourcefulness
through enlightened and cohesive policies in education, training, health and employment
at all levels, from corporate to national.
basically human resource deals with the human qualities as a resources and using them in
the organization to overcome the problem with the effective solution at the right time by
the right person at the right place.
Management
Human resource management's objective, on the other hand, is to maximize the return on
investment from the organization's human capital and minimize financial risk. It is the
responsibility of human resource managers in a corporate context to conduct these
activities in an effective, legal, fair, and consistent manner.
Key functions
Human Resource Management serves these key functions:
1. Recruitment & Selection
2. Training and Development (People or Organization)
3. Performance Evaluation and Management
4. Promotions/Transfer
3
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Total Rewards: Employee Benefits & Compensation
9. Confidential advice to internal 'customers' in relation to problems at work
10. Career development
11. Competency Mapping (Competency mapping is a process an individual uses to
identify and describe competencies that are the most critical to success in a work
situation or work role.)
12. Time motion study is related to HR Function
13. Performance Appraisal
Modern analysis
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings in a productive enterprise. The 2000 revision of ISO
9001 in contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily unionized
nations such as France and Germany have adopted and encouraged such job descriptions
especially within trade unions. The International Labour Organization also in 2001
decided to revisit, and revise its 1975 Recommendation 150 on Human Resources
Development. One view of these trends is that a strong social consensus on political
economy and a good social welfare system facilitates labor mobility and tends to make
the entire economy more productive, as labor can develop skills and experience in
various ways, and move from one enterprise to another with little controversy or
4
difficulty in adapting. Another view is that governments should become more aware of
their national role in facilitating human resources development across all sectors.
Labour mobility
An important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that this appropriation is similar to
colonial commodity fiat wherein a colonizing European power would define an arbitrary
price for natural resources, extracting which diminished national natural capital.
The debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and
have requested significant offsetting "foreign aid" contributions so that a developing
nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.
An extreme version of this view is that historical inequities such as African slavery must
be compensated by current developed nations, which benefited from stolen "human
resources" as they were developing. This is an extremely controversial view, but it echoes
the general theme of converting human capital to "human resources" and thus greatly
diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society.
5
In a series of reports of the UN Secretary-General to the General Assembly [e.g.
A/56/162 (2001)], a broad inter-sectoral approach to developing human resourcefulness
[see United Nations Expert Meeting on Human Resources Development. `Changing
Perspectives on Human Resources Development. ST/TCD/SER.E/25. June 1994] [4] has
been outlined as a priority for socio-economic development and particularly anti-poverty
strategies. This calls for strategic and integrated public policies, for example in education,
health, and employment sectors that promote occupational skills, knowledge and
performance enhancement (Lawrence, J.E.S.)
Perceptions
Terms like "human resources" and "human capital" may be perceived as insulting to
people. They create the impression that people are merely commodities, like office
machines or vehicles, despite assurances to the contrary.
Corporate management
In the very narrow context of corporate "human resources" management, there is a
contrasting pull to reflect and require workplace diversity that echoes the diversity of a
global customer base. Foreign language and culture skills, ingenuity, humor, and careful
listening, are examples of traits that such programs typically require. It would appear that
these evidence a general shift through the human capital point of view to an
acknowledgment that human beings do contribute much more to a productive enterprise
than "work": they bring their character, their ethics, their creativity, their social
connections, and in some cases even their pets and children, and alter the character of a
workplace. The term corporate culture is used to characterize such processes at the
organizational level.
6
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete in the
modern global economy have adopted a view of human capital that mirrors the modern
consensus as above. Some of these, in turn, deprecate the term "human resources" as
useless. Yet the term survives, and if related to `resourcefulness', has continued and
emerging relevance to public policy.
In general the abstractions of macro-economics treat it this way - as it characterizes no
mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.
Human resources management trends and influences
In organizations, it is important to determine both current and future organisational
requirements for both core employees and the contingent workforce in terms of their
skills/technical abilities, competencies, flexibility etc. The analysis requires consideration
of the internal and external factors that can have an effect on the resourcing,
development, motivation and retention of employees and other workers. The external
factors are those largely out-with the control of the organization and include issues such
as the economic climate, current and future trends of the labor market e.g. skills,
education level, government investment into industries etc. On the other hand internal
influences are broadly within the control of the organization to predict determine and
monitor, for example the organizational culture underpinned by management behaviours
7
(or style), environmental climate and the approach to ethical and corporate social
responsibilities.
Major trends
In order to know the business environment in which any organization operates, three
major trends should be considered:
Demographics
the characteristics of a population/workforce, for example, age, gender or social
class. This type of trend may have an effect in relation to pension offerings,
insurance packages etc.
Diversity
the variation within the population/workplace. Changes in society now mean that
a larger proportion of organizations are made up of "baby-boomers" or older
employees in comparison to thirty years ago. stankein advocates of "workplace
diversity" simply advocate an employee base that is a mirror reflection of the
make-up of society insofar as race, gender, sexual orientation, etc.
Skills and qualifications
as industries move from manual to a more managerial professions so does the
need for more highly skilled graduates. If the market is "tight" (i.e. not enough
staff for the jobs), employers will have to compete for employees by offering
financial rewards, community investment, etc.
Individual responses
In regard to how individuals respond to the changes in a labour market the following
should be understood:
8
Geographical spread
How far is the job from the individual. The distance to travel to work should be in
line with the pay offered by the organization and the transportation and
infrastructure of the area will also be an influencing factor in deciding who will
apply for a post.
Occupational structure
The norms and values of the different careers within an organization. Mahoney
1989 developed 3 different types of occupational structure namely craft (loyalty
to the profession), organization career (promotion through the firm) and
unstructured (lower/unskilled workers who work when needed).
Generational difference
Different age categories of employees have certain characteristics, for example
their behavior and their expectations of the organization.
Framework
Human Resources Development is a framework for the expansion of human capital
within an organization or (in new approaches) a municipality, region, or nation. Human
Resources Development is a combination of training and education, in a broad context of
adequate health and employment policies, that ensures the continual improvement and
growth of both the individual, the organisation, and the national human resourcefulnes.
Adam Smith states, “The capacities of individuals depended on their access to
education”. Human Resources Development is the medium that drives the process
between training and learning in a broadly fostering environment. Human Resources
Development is not a defined object, but a series of organised processes, “with a specific
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learning objective” (Nadler,1984)[7] Within a national context, it becoms a strategic
approach to intersectoral linkages between health, education and employment.[8]
Structure
Human Resources Development is the structure that allows for individual development,
potentially satisfying the organization’s, or the nation's goals. The development of the
individual will benefit both the individual, the organization, or the nation and its citizens.
In the corporate vision, the Human Resources Development framework views employees,
as an asset to the enterprise whose value will be enhanced by development, “Its primary
focus is on growth and employee development…it emphasises developing individual
potential and skills” (Elwood, olton and Trott 1996) Human Resources Development in
this treatment can be in-room group training, tertiary or vocational courses or mentoring
and coaching by senior employees with the aim for a desired outcome that will develop
the individual’s performance. At the level of a national strategy, it can be a broad
intersectoral approach to fostering creative contributions to national productivity [10]
Training
At the organizational level, a successful Human Resources Development program will
prepare the individual to undertake a higher level of work, “organized learning over a
given period of time, to provide the possibility of performance change” (Nadler 1984). In
these settings, Human Resources Development is the framework that focuses on the
organizations competencies at the first stage, training, and then developing the employee,
through education, to satisfy the organizations long-term needs and the individuals’
career goals and employee value to their present and future employers. Human Resources
Development can be defined simply as developing the most important section of any
10
business its human resource by, “attaining or upgrading the skills and attitudes of
employees at all levels in order to maximise the effectiveness of the enterprise” (Kelly
2001). The people within an organization are its human resource. Human Resources
Development from a business perspective is not entirely focused on the individual’s
growth and development, “development occurs to enhance the organization's value, not
solely for individual improvement. Individual education and development is a tool and a
means to an end, not the end goal itself”. (Elwood F. Holton II, James W. Trott Jr)[11]. The
broader concept of national and more strategic attention to the development of human
resources is beginning to emerge as newly independent countries face strong competition
for their skilled professionals and the acbanking brain-drain they experience.
Recruitment
Employee recruitment forms a major part of an organization's overall resourcing
strategies which seek to identify and secure the people needed for the organisation to
survive and succeed in the short to medium-term. Recruitment activities need to be
responsive to the ever-increasingly competitive market to secure suitably qualified and
capable recruits at all levels. To be effective these initiatives need to include how and
when to source the best recruits internally or externally. Common to the success of either
are; well-defined organisational structures with sound job design, robust task and person
specification and versatile selection processes, reward, employment relations and human
resource policies, underpinned by a commitment for strong employer branding and
employee engagement strategies.
Internal recruitment can provide the most cost-effective source for recruits if the potential
of the existing pool of employees has been enhanced through training, development and
11
other performance-enhancing activities such as performance appraisal, succession
planning and development centres to review performance and assess employee
development needs and promotional potential.
Increasingly, securing the best quality candidates for almost all organizations will rely, at
least occasionally if not substantially, on external recruitment methods. Rapid changing
business models demand skills of experiences which cannot be sourced or rapidly enough
developed from the existing employee base. It would be unusual for an organisation
today to undertake all aspects of the recruitment process without support from third-party
dedicated recruitment firms. This may involve a range of support services, such as;
provision of CVs or resumes, identifying recruitment media, advertisement design and
media placement for job vacancies, candidate response handling, shortlisting, conducting
aptitude testing, preliminary interviews or reference and qualification verification.
Typically, small organisations may not have in-house resources or, in common with
larger organisations, may not possess the particular skill-set required to undertake a
specific recruitment assignment. Where requirements arise these will be referred on an
adhoc basis to government job centres or commercially run employment agencies.
Except in sectors where high-volume recruitment is the norm, an organization faced with
an unexpected requirement for an unusually large number of new recruits at short notice
will often hand over the task to a specialist external recruiter to manage the end-to-end
resourcing programme. Sourcing executive-level and senior management as well as the
acquisition of scarce or ‘high-potential’ recruits has been a long-established market
serviced by a wide range of ‘search and selection’ or ‘headhunting’ consultancies which
typically form long-standing relationships with their client organizations. Finally, certain
12
organizations with sophisticated HR practices have identified there is a strategic
advantage in outsourcing complete responsibility for all workforce procurement to one or
more third-party recruitment agencies or consultancies. In the most sophisticated of these
arrangements the external recruitment services provider may not only physically locate,
or ‘embed’, their resourcing team(s) within the client organization's offices but will work
in tandem with the senior human resource management team in developing the longer-
term HR resourcing strategy and plan.
Modern concept of human resources
Though human resources have been part of business and organizations since the first days
of agriculture, the modern concept of human resources began in reaction to the efficiency
focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in
the United States started the human relations movement, which viewed workers in terms
of their psychology and fit with companies, rather than as interchangeable parts. This
movement grew throughout the middle of the 20th century, placing emphasis on how
leadership, cohesion, and loyalty played important roles in organizational success.
Although this view was increasingly challenged by more quantitatively rigorous and less
"soft" management techniques in the 1960s and beyond, human resources development
had gained a permanent role within organizations, agencies and nations, increasingly as
not only an academic discipline, but as a central theme in development policy.
13
Competency frameworks
Competencies are typically used to define the behaviours that an employer values and
believes will help it achieve its long-term goals. A well-designed competency framework
can form the backbone for a wide range of HR activities. However, great care and
attention needs to be taken during the design stage and the framework should be reviewed
regularly to ensure it remains relevant.
Blended learning
Many organisations are now adopting a ‘blended’ approach to learning and development.
This is based on the recognition that e-learning is just one of many forms of training
delivery, all of which have a role to play in providing employees with essential
knowledge and understanding. The greatest strength of e-learning lies in its potential to
provide a consistent level of training when and wherever it is needed.
Leadership development
Looks at the design and delivery of structured leadership development
programmes.
Examines issues such as defining leadership and identifying future leaders.
Includes detailed case studies of the leadership programmes in place at five
named organizations.
14
Leadership is vital in any organisation to provide direction, set strategy and to get the best
out of employees. Different goals require different types of leaders and an increasing
number of employers now use teams of leaders rather than individual figureheads to
benefit from a broad range of skills and abilities at the top of an organisation. As the
demands on leaders continue to grow, so the need for leadership development
programmes becomes more important.
Mentoring
Looks at the principles of good mentoring.
Covers issues in managing a formal mentoring scheme, such as the matching
process, setting ground rules and evaluating the scheme's effectiveness.
Five detailed bank case studies of mentoring in a variety of contexts.
Includes a short 'mentoring resources' section.
15
Mentoring can be an effective development tool with applications in a wide variety of
organisational contexts for different groups of employees, from graduate recruits to
senior executives. Employers that run formal mentoring schemes point to the benefits not
only for mentees, but for programme mentors and the business as a whole. This HR
Study examines the objectives of such schemes, the process whereby participants are
selected and matched, the content of mentoring meetings and the way organisations
attempt to evaluate their schemes.
A formal mentoring scheme is really an attempt to bring structure, guidelines and clear
aims to a practice that is often a fairly normal part of organisational activity. Mentoring
has always gone on - usually where a senior employee strikes up a rapport with a more
junior colleague and nurtures their development by passing on knowledge and offering
guidance. By setting up a formal mentoring programme, more opportunities are created
for such relationships to flourish and the benefits inherent in mentoring can be extended
more even-handedly to a greater number of staff.
The Study includes detailed case studies of five organisations that have successfully
introduced mentoring schemes for a variety of employees, from graduate recruits and
department store managers to fast-trackers and senior executives. It also includes a
section summarising the activities of some of the key players in the mentoring field who
can offer advice on best practice, training courses for mentors or help with setting up a
mentoring scheme.
16
Performance management
Examines the performance planning process, including agreeing individual
targets linked with overall business goals, establishing SMART measures and
taking account of how, as well as what, objectives are to be met.
Looks at how employers track and support progress during the year by means
of formal interim reviews and regular feedback.
Discusses the final review process, including preparation and collection of
evidence (possibly in the form of 360-degree feedback), conducting the
appraisal, applying ratings and ensuring consistency.
Considers potential outcomes, such as the link to pay and career development
opportunities, and how employers seek to manage poor performers.
Includes five detailed bank case studies.
Performance management is a continuous process based on flexible objectives closely
aligned with business goals ad supported by regular feedback. Employees are
increasingly being given greater ownership of the process and responsibility for their own
17
career development. But line managers still have a vital role to play in monitoring
progress, providing constructive feedback and coaching employees to improve.
Supporting business strategy
The ultimate aim of any performance management framework is to improve the
effectiveness of the business as a whole. Each individual’s targets should therefore be
aligned with the organization’s strategic goals if there is to be a real impact on the bottom
line. In their push for a higher performance culture that will drive longer-term business
success, organizations are also placing greater emphasis on behavioral goals. These are
typically set in relation to a competency framework to define the manner in which
objectives ought to be met. There is also a growing focus on personal development
planning as a means of helping employees achieve their targets and of encouraging
continuous improvement.
Line managers have key role
While organisations are increasingly advocating a higher degree of employee ownership
of the performance management process, line managers continue to play a key role as
facilitators, advocates and coaches. The success of a new performance management
system rests largely on the ability of line managers to manage and engage their staff.
Consulting with them during the initial design phase, then, is likely to build enthusiasm
and can help to secure buy-in and long-term commitment to the process.
18
Psychometric tests
Covers both ability tests and personality assessments.
Highlights the importance of selecting an appropriate test.
Discusses good practice in test administration and feedback.
Features six detailed bank case studies examining how tests are used for
selection and development purposes in a variety of contexts.
By offering a way for employers to gain a relatively objective source of information on
candidates, psychometric testing can be an important tool in reaching recruitment
decisions. It can also play a valuable role in assessing an employee's suitability for
promotion and in identifying development needs. Tests can measure ability in a range of
different areas and provide an insight into employees' personalities and work styles.
However, tests should never be used without suitable training and they should not be
employed independently of other assessment measures. This StudyPlus looks at how
psychometric tests are scored, interpreted and reported. It also outlines the training
required to become a qualified test user, considers how to reduce the potential for
discrimination in testing and discusses the pros and cons of online testing.
Succession planning
Examines how succession planning processes are managed.
Considers ways of identifying talent and of developing individuals with high
potential.
Outlines the types of qualities organisations look for in future leaders and how
these are assessed.
19
Offers pointers to how succession plans can be implemented effectively.
Includes detailed case studies of the succession planning activities in six
organizations.
Succession planning can help organizations ensure that they have sufficient people of the
right calibre and skills in place to take over the roles of senior colleagues as they retire or
leave the business. The objective is to secure an effective and orderly transition.
However, succession plans are not just about eliminating gaps when people move on;
they are also about ensuring that the talent pool is developed and deployed to the roles
where it is needed as organizations grow and evolve.
This Study considers how succession processes are managed, how employee potential is
assessed and how individuals can be given opportunities to develop. It also examines
some of the practical issues that need to be faced if these activities are to make a
significant contribution to a successful talent management strategy.
OBJECTIVES
20
The main objectives of the study are:-
To know the various HR implications in private banks.
To know whether employees are satisfied with their jobs or not.
To know the various retention practices used in banks.
To know the motivational factors used by the banks.
To know whether training and development programs are conducted b the
banks or not
SCOPE & IMPORTANCE
21
1) People are major asset and that an organization can make full utilization of
individual potential by providing a developmental environment and opportunities
by encouraging and rewarding innovativeness and creativity.
2) Such people who are unable to contribute to the organization fully due to reasons
beyond their control can also give their best if they are taken care of proper
environment and conditions are provided.
3) Competency can be developed in people at any point of time and organizations
must encourage competency enhancement.
4) Human resource development provides higher quality of work-life through
opportunities of a meaningful career, job satisfaction and professional
development.
5) Human resource development philosophy emphasizes human well-being and
organizational growth.
6) Human resource development policies are relationship centered and the extent of
relationship under human resource development is life long and not merely for 8
hours a day.
7) If employees perceive a nurturing environment, automatically there would be a
positive response to match individual aspirations with organizational needs.
8) Human resource development processes have to be planned and continous in
order to be effective.
9) A signal to the employees that management believes they are important and
should motivate them to acquire new skills and consequent rewards.
22
10) Human resource development fosters commitment through the communication of
values.
11) Human resource development facilitates identification with organizational goals
through better employee understanding.
12) Human resource development provides for two-way, open and interactive
communication between management and employees.
13) Human resource development focuses on needs satisfaction through achievement
and recognition.
14) Human resource development provides job enrichment through training and the
acquisition of new skills.
15) Human resource development increased awareness of the importance of change
management and consequent adaptability of employees.
23
LITERATURE REVIEW
24
BANK PROFILE
HDFC BANK
HDFC Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion
(US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the
half year ended September 30, 2008. The Bank has a network of about 1,400 branches
and 4,530 ATMs in India and presence in 18 countries. HDFC 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.
25
HDFC 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).
History:
HDFC Bank was originally promoted in 1994 by HDFC Limited, an Indian financial
institution, and was its wholly-owned subsidiary. HDFC's shareholding in HDFC 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, HDFC Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by HDFC to institutional investors in fiscal 2001 and fiscal 2002.
HDFC was formed in 1955 at the initiative of the World Bank, the Government of India
26
and representatives of Indian banks. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, HDFC 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 HDFC Bank. In 1999, HDFC become the first Indian bank and the first
bank or financial institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking banks, and the move towards
universal banking, the managements of HDFC and HDFC Bank formed the view that the
merger of HDFC with HDFC Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the HDFC group's universal
banking strategy. The merger would enhance value for HDFC shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning fee-based
income and the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for HDFC Bank shareholders through
a large capital base and scale of operations, seamless access to HDFC's strong corporate
relationships built up over five decades, entry into new business segments, higher market
share in various business segments, particularly fee-based services, and access to the vast
talent pool of HDFC and its subsidiaries. In October 2001, the Boards of Directors of
HDFC and HDFC Bank approved the merger of HDFC and two of its wholly-owned
retail finance subsidiaries, HDFC Personal Financial Services Limited and HDFC Capital
Services Limited, with HDFC Bank. The merger was approved by shareholders of HDFC
27
and HDFC Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March
2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in
April 2002. Consequent to the merger, the HDFC group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
HDFC Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees.
HDFC Bank (BSE: HDFC) (formerly Industrial Credit and Investment Corporation of
India) is India's largest private sector bank in market capitalization and second largest
overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of
March 2008), a network of over 1,399 branches, 22 regional offices and 49 regional
processing centres, about 4,485 ATMs (at the end of September 2008), and 24 million
customers (at the end of July 2007). HDFC Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and specialised subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management. (These data are
dynamic.) HDFC Bank is also the largest issuer of credit cards in India. [1]. HDFC Bank
has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai
and the National Stock Exchange of India Limited, and its ADRs on the New York Stock
Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. HDFC Bank now has wholly-owned subsidiaries, branches and
representatives offices in 18 countries, including an offshore unit in Mumbai. This
28
includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking
units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong
Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,
Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the
Bank is targeting the NRI (Non-Resident Indian) population in particular.
HDFC reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in
total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
1955: The Industrial Credit and Investment Corporation of India Limited (HDFC) was
incorporated at the initiative of World Bank, the Government of India and representatives
of Indian banks, with the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
Mr.A.Ramaswami Mudaliar is elected as the first Chairman of HDFC Limited.
HDFC emerges as the major source of foreign currency loans to Indian banks.
Besides funding from World Bank and other multi-lateral agencies, HDFC was
also among the first Indian companies to raise funds from international markets.
1956: HDFC declared its first dividend, of 3.5%.
1958: Mr.G.L.Mehta appointed the second Chairman of HDFC Ltd.
1960: HDFC building at 163, Backbay Reclamation, inaugurated.
1961: The first West German loan of DM 5 million from Kredianstalt obtained.
29
1967: HDFC made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969: The first two regional offices set up in Calcutta and Madras.
1972: HDFC becomes the second entity in India to set up merchant banking services.
Mr. H. T. Parekh appointed the third Chairman of HDFC.
1977: HDFC sponsored the formation of Housing Development Finance Corporation and
manages its first equity public issue.
1978: Mr. James Raj appointed the fourth Chairman of HDFC.
1979: Mr.Siddharth Mehta appointed the fifth Chairman of HDFC.
1982: HDFC became the first ever Indian borrower to raise European Currency Units.
HDFC commences leasing business.
1984: Mr. S. Nadkarni appointed the sixth Chairman of HDFC.
1985: Mr. N.Vaghul appointed the seventh Chairman and Managing Director of HDFC.
1986: HDFC became the first Indian institution to receive ADB Loans.
HDFC, along with UTI, set up Credit Rating Information Services of India
Limited, India's first professional credit rating agency.
HDFC promotes Shipping Credit and Investment Bank of India Limited.
30
The Corporation made a public issue of Swiss Franc 75 million in Switzerland,
the first public issue by any Indian entity in the Swiss Capital Market.
1987: HDFC signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988: Promoted TDICI - India's first venture capital bank.
1993: HDFC Securities and Finance Bank Limited in joint venture with J. P. Morgan set
up.
HDFC Asset Management Bank set up.
1994: HDFC Bank set up.
1996: HDFC Ltd became the first bank in the Indian financial sector to raise GDR.
SCICI merged with HDFC Ltd.
Mr. K.V.Kamath appointed the Managing Director and CEO of HDFC Ltd
1997: HDFC Ltd was the first intermediary to move away from a single prime rate
structure to a three-tier prime rates structure and introduced yield-curve-based pricing.
The name "The Industrial Credit and Investment Corporation of India Ltd"
changed to "HDFC Ltd."
HDFC Ltd. announced the takeover of ITC Classic Finance.
31
1998: A new logo symbolizing the common corporate identity for the HDFC Group was
introduced.
HDFC announced takeover of Anagram Finance.
1999: HDFC launched retail finance - car loans, home loans and loans for consumer
durables.
HDFC becomes the first Indian bank to get listed on the NYSE through an issue
of American Depositary Shares.
2000: HDFC Bank became the first commercial bank from India to get its stock listed on
the NYSE.
HDFC Bank announces merger with Bank of Madura.
2001: The Boards of HDFC Ltd and HDFC Bank approved the merger of HDFC Ltd.
with HDFC Bank.
2002: HDFC Ltd merged with HDFC Bank Ltd to create India’s second-largest bank in
terms of assets.
HDFC assigned higher than "Sovereign" rating by Moody’s.
HDFC Bank launched India’s first CDO (Collateralised Debt Obligation) Fund
named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).
"E-Lobby", a self-service banking centre and a first of its kind in India, is
inaugurated in Pune.
32
HDFC Bank launched Private Banking.
A 1,100-seat Call Centre for Customer Care by phone and e-mail was set up in
Hyderabad.
HDFC Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune.
ATM-on-Wheels, India’s first mobile ATM, launched in Mumbai.
2003: The first Integrated Currency Management Centre launched in Pune.
HDFC Bank announced the setting up of its first-ever offshore branch in
Singapore.
The first offshore banking unit (OBU) at SEEPZ Special Economic Zone,
Mumbai, was launched.
HDFC Bank’s representative office inaugurated in Dubai.
Representative office set up in China.
HDFC Bank’s UK subsidiary launched.
India’s first ever "Visa Mini Credit Card", a credit card 43% smaller in
dimensions was launched.
A subsidiary of HDFC Bank was set up in Canada.
Temasek Holdings acquired 5.2% stake in HDFC Bank.
HDFC Bank became the market leader in retail credit in India.
2004: Max Money, a home loan product that offers the dual benefit of higher eligibility
and affordability to a customer, introduced.
33
Mobile banking service in India launched in association with Reliance Infocomm.
India’s first multi-branded credit card with HPCL and Airtel launched.
Kisan Loan Card and innovative, low-cost ATMs were launched in rural India.
HDFC Bank and CNBC TV 18 announced India’s first ever awards recognizing
the achievements of SMEs, a pioneering initiative to encourage the contribution
of Small and Medium Enterprises to the growth of the Indian economy.
HDFC Bank opened its 500th branch in India.
HDFC Bank introduced partnership model wherein HDFC Bank would forge an
alliance with existing micro finance institutions (MFIs). The MFI would
undertake the promotional role of identifying, training and promoting the micro-
finance clients and HDFC Bank would finance the clients directly on the
recommendation of the MFI.
HDFC Bank introduced 8 to 8 Banking wherein all the branches of the Bank
would remain open from 8a.m. to 8 p.m. from Monday to Saturday.
HDFC Bank introduced the concept of floating rate for home loans in India.
2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
"Free for Life" credit cards launched wherein annual fees of all HDFC Bank
Credit Cards were waived off.
HDFC Bank and Visa jointly launched mChq – a revolutionary credit card on the
mobile phone.
34
Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the Private Banking division launched. This event is the largest
domestic invitation amateur golf event conducted in India.
Becomes the first Indian bank to make a simultaneous equity offering of $1.8
billion in India, the United States and Japan.
Acquired IvestitsionnoKreditny Bank of Russia.
HDFC Bank became the largest bank in India in terms of its market capitalization.
HDFC Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.
2006: HDFC Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in
the international markets.
HDFC Bank subsidiary set up in Russia.
Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit
scheme for nonresident Indians.
Representative offices opened in Thailand, Indonesia and Malaysia.
HDFC Bank became the largest retail player in the market to introduce a
biometric enabled smart card that allow banking transactions to be conducted on
the field. A low-cost solution, this became an effective delivery option for HDFC
Bank’s micro-finance institution partners.
Financial counseling centre Disha launched. Disha provides free credit
counseling, financial planning and debt management services.
Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.
35
2007: HDFC Bank makes a USD 2 billion three-tranche international bond offering,
which becomes the largest bond offering by an Indian bank.
Sangli Bank was amalgamated with HDFC Bank.
HDFC Bank raised Rs 20,000 crore (approx $5 billion) from domestic and
international markets through a follow-on public offer.
HDFC Bank’s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the
sterling market from Asia.
Launched India’s first ever jewellery card in association with jewellery major
Gitanjali Group.
HDFC Bank became the first bank in India to launch a premium credit card -- The
Visa Signature Credit Card.
The foundation stone for a regional hub in Gandhinagar, Gujarat was laid.
HDFC Bank introduced SME Toolkit, an online resource centre, to help small and
medium enterprises start, finance and grow their business.
HDFC Bank signed a multi-tranche dual currency US$ 1.5 billion syndication
loan agreement in Singapore.
HDFC Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.
In a first-of-its-kind, nation wide initiative to attract bright graduate students to
pursue a careers in banking, HDFC Bank launched the "Probationary Officer
Programme".
36
Launched Bank@Home services for all savings and current account customers
residing in India
HDFC Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.
2008: HDFC Bank enters USA, launches its first branch in New York
HDFC Bank enters Germany, opens its first branch in Frankfurt
HDFC Bank launched iMobile, a breakthrough innovation in banking where
practically all Internet banking transactions can now be done easily on the mobile
phone.
HDFC Bank concluded India's largest ever securitization transaction of a pool of
retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion)
in a multi-tranche issue backed by four different asset categories. It is also the
largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia
(ex-Japan and Australia) since the beginning of 2007.
HDFC Bank launches HDFCACTIVE-Banking Interactive Service - along with
DISH TV, which will allow viewers to see information about the Bank's products
and services and contact details on their DISH TV screens.
HDFC Bank and British Airways launch a co-branded credit card, designed to
earn cardholders accelerated reward points with every British Airways flight or by
spending on everyday purchases
37
Present Status of the Organization:-
March 2007 March 2008 March 2009
Citied 228 316 452
Branches 535 684 1412
ATMs 1323 1605 3275
Housing Development Finance Corporation Limited, more popularly known as HDFC
Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Banks by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across
India. Amalgamation
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector
bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times
became the first two private banks in the New Generation Private Sector Banks to have
gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of
Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs.
1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was
Rs. 1,63,000 crore.
38
Head Office
HDFC Bank
Ramon House, 169, Backbay Reclamation,
H T Parekh Marg, Churchgate
Mumbai - 400020
Phone: +91 (22) 66316000, 66636000, 66316060
Fax: +91 (22) 22048834
Website: www.hdfc.com
Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of
information technology or communication systems. All the braches of the bank boast of
online connectivity with the other, ensuring speedy funds transfer for the clients. At the
same time, the bank's branch network and Automated Teller Machines (ATMs) allow
multi-branch access to retail clients. The bank makes use of its up-to-date technology,
along with market position and expertise, to create a competitive advantage and build
market share.
Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of
this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the
HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the
equity and about 17.6% is held by the ADS Depository (in respect of the bank's
American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its
shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while
39
its American Depository Shares are listed on the New York Stock Exchange (NYSE),
under the symbol 'HDB'
Functional Departments of the Organisation:-
The functional departments of the organization consists of the HR department, the
administrative department and the executive department. The HR department of the
organization consists of the people who employ the Persons who they think would be
able to do justice with the job handled.The administrative department of the organization
consists of the director and the manager of the organization. They preside the
organization and control all the operations of the organization such that the organization
could run in a smooth and effective manner.The executive department of the organization
consists of the various employees Who execute the job undertaken by them. The
employees consists of the team leaders, the Corporate financial consultants,. the
telecallers, various staffs and junior staffs who are the main structural framework of the
organization. The organization thus runs with the effective coordination of the HR
department, the administrative department and the executive department such that the
supervisors of the organization preside over the subordinate employees to give them
directions about fulfilling their works most efficiently and effectively. Technical
Consultancy Department: The Technical Consultancy Department is responsible for
technical appraisal of industrial projects. The mission of the division is aimed towards the
verification of the technical viability of industrial projects and assisting the Funds
management in taking the decisions that require technical expertise. Moreover, it is
responsible for conducting technical studies and rendering technical consultancy BANK
40
to certain industrial sectors for the purposes of investigating modern technologies and
productivity levels for local manufacturing plants.
H R Department:
HDFC Human Resources department plans and direct for the employee population as
well as they are having the following functions as:-
Hiring
Promotions
Reassignments
Position classification and grading
Salary determination
Performance appraisal review and processing
Personnel data entry and records maintenance
Policy development
Work permitting immigration visa program
Workers’ compensation
Finance Department:
The Finance Manager is responsible for all aspects of the accounting and financial
administration of the HDFC, the supervision of the implementation of the HDFC
financial policies, directives and procedures and the initiation of the financial plans
within the guidelines of HDFC The department contains several distinct sections, each of
which is responsible for a proportion of the activities taking place within the finance
department.
41
Marketing Consultancy Department:
The Marketing Consultancy Department plays and important role within the Fund as it
studies and analyzes marketing information in order to build solid base for management
decisions. The division also assists projects sponsors in formulating solid marketing
strategies to improve their industries and strengthen their position in the local and
international markets.
Research Department:
The Research Department is having the capacity to act through four composing units i.e.,
the market research unit, economic studies unit, and statistical studies unit. It is the
mission of the division to provide support BANK for information and consultancy to the
senior management and division in the areas of economic, statistical and marketing
information and consultancy through data analysis, processing of economic and statistical
data, market research studies and publishing related periodical reports.
Organization Structure and Organization Chart:-
The organization structure of the bank HDFC is such that it comprises of the departments
and the employees in the hierarchical order so that they are able to perform their
functions and duties smoothly and effectively doing their job in a manner in which it
should be done. The organization is headed by the administrative department which
coordinates and controls the executive department. The executive department is a link
from the top and the bottom comprising of the lower level employees such that they work
together to fulfill the common objective of getting business from the persons who get in
touch with them and see to it that they are provided with the best of the BANK which
42
constitute giving financial advise to providing Account to the customers. The lower level
employees and the corporate financial consultants work together to see to it that the
database for providing financial BANK to sufficient number of people is made .They
work together to see to it that this database is followed and worked upon such that more
and more number of people get themselves avail the financial BANK of the organization.
Team leaders who form the part of the administrative department of the Organization
make sure that the clients that turn up for the financial BANK are dealt with most
efficiently and effectively.
43
The organizational structure is well planned out and it follows a simple format which is
follows:
Organization Chart:-
Each team lead has a team comprising only of both senior as well as junior market
research analyst who aid the team lead in the entire market research process as it has been
discussed previously. This is the basic organizational structure followed by HDFC
BANK.
44
PRODUCT/SERVICE PROFILE
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The bank cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the bank has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and
needs. For organizations the bank has a host of customized solutions that range from
Funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing
Goodwill of the bank. The products of the bank are categorized into various sections
which are as follows:
Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards
Prepaid Cards
45
Investments & Insurance
Forex Services
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
NRI Banking
Rupee Savings Accounts
Rupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quick remit (North America, UK, Europe, Southeast Asia)
India Link (Middle East, Africa)
Coequal Lock Box
In today’s world many companies have emerged who have taken a serious note on the
importance of market research and he advantages of using it for the better growth and
development of the bank. Hence, our competitors are those bank’s who are in the market
research and development field as well as the consultancies, since they also make use of
market research and business developers.
46
The products and BANK of our competitors are as follows:
A. Customer Satisfaction Analysis:
Customer analysis involves gathering data about the customers and their characteristics.
They also conduct tailored customer satisfaction surveys to gauze customer satisfaction.
B. Risk
These BANK are used by the competitors in order to gather external information and
research the possible effect on the competitiveness of bank.
C. Product Research BANK:
The conduction of extensive product research by this service helps the competitors to find
out the marketability of a product or service. The research can be utilized to leverage the
major decisions of a bank on the marketing of its products.
D. Advertising Research BANK:
Advertising research strives to gain valuable information about the effects and reach of
advertising the products in different forms of media.
Given below are the steps we follow for every assignment we take up:
1. The timetable for the search is indicated and the search process commences.
2. Target companies are examined, using any prior information provided by business
development executives in conjunction with sources of information and prospective
companies already known to us, augmented with original study by our search team.
3. We maintain a regular channel of communication with the client to keep them apprised
of the results emerging.
47
Market profile of the organization:-
HDFC Bank Limited provides various financial products and services. It operates in three
segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking
segment provides various deposit products, including savings accounts, current accounts,
fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle,
home, gold, and educational loans; loans against securities, property, and rental
receivables; and health care finance working capital finance, construction equipment
finance, and warehouse receipt loans, as well as credit cards, debit cards, depository,
investment advisory, bill payments, and transactional services. In addition, this segment
sells third party financial products, such as mutual funds and insurance, as well as
distributes life and general insurance products through its tie-ups with insurance
companies and mutual fund houses. The wholesale banking segment provides loans, non-
fund facilities, and transaction services to large corporate, emerging corporate, small and
medium enterprise, supply chain, public sector undertaking, central and state government
departments, and institutional customers. It offers deposit and transaction banking
products, supply chain financing, working capital and term finance, agricultural loans,
and funded, non-funded treasury, and foreign exchange products. These segments
services include trade services, cash management, money market, custodial, tax
collection, and electronic banking. In addition, it provides correspondent bank services to
co-operative banks, private banks, foreign banks, and regional rural banks; and wealth
management products for non-resident Indians. The Treasury Services segment operates
primarily in areas, such as foreign exchange, money market, interest rate trading, and
equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295
48
automated teller machines in 528 cities in India. The bank was founded in 1994 and is
based in Mumbai, India.
In today’s growing world everyone needs to diversify their business so as to keep in
touch with the rapid development. By analyzing the growing concerns of the market,
HDFC has clients varying from investment banking sector, retail, web designing
companies, etc. Due to this rapid development HDFC Group has many teams working for
the above mentioned sectors.
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class
Indian Bank". We realised that only a single-minded focus on product quality and
service excellence would help us get there. Today, we are proud to say that we are well
on our way towards that goal.
49
50
RESEARCH METHODOLOGY
INTRODUCTION TO THE PROBELM
The main objective of my study is to analyse the HRD climate and system
implementation in the HDFC BANK As the organisation is not very large and my
research is empirical in nature that’s why I have covered the following aspects of HRD
climate and system.
HRD System:-
1. Transfer and Rotation
2. Reward and Punishment
3. Performance Appraisal
4. Feedback
5. Training and Development
6. Career Planning
7. Succession Planning
8. Participation
HRD Climate:-
1. Non Financial Motivation and Job Satisfaction
2. Communication Process
3. Collaboration and unity among employees
Research Objectives
51
1. To examine the nature of HRD climate prevailing in the bank.
2. To identify the nature of HRD system in the bank.
3. To measure the effectiveness of Training Programmes implemented and
Performance Appraisal techniques used in the analysing on.
4. To analyse the prevailing practices of worker’s participation in Management and
study the relation between Management and Employees.
RESEARCH DESIGN
Research design is simply the framework or plan for a study, used as a guide in collecting
and analysing data. There are three types of Research Design:-
1. Exploratory Research Design:- The major emphasis in exploratory
Research design is on discovery of ideas and insights.
2. Descriptive Research Design:- The Descriptive Research Design
Study is typically concerned with determining the frequency with which
something occurs or the relationship between two variables.
3. Causal Research Design:- A Causal Research Design is concerned
with determining cause and effect relationship.
For the study, Descriptive Research Design was undertaken as it draws the opinion of
employees/ workers on a specific aspect.
SAMPLING DESIGN
Population:-
Element: Managers (09) & Employees(19)
Sampling Unit: Departments- Sections- Managers- Employees
Extent: HDFC Bank
52
Sampling Method:-
There are two methods of sampling:-
4. Probability Sampling: It is based on the concept of random selection of a
controlled procedure that assures that each Population element is gives a non-
zero chance of selection. Probability Sampling is of following types:
1. Simple Random
2. Systematic
3. Cluster
4. Stratified
5. Double
2. Non-Probability Sampling: Non probability sampling is non-random and subjective.
That is each member does not have a known non zero chance of being included. Types of
Non-Probability Sampling
1. Convenience
2. Judgement
3. Quota
Researcher selects the sample as per their convenience.
For this research work I have choosen Non- Probability Convenience Sampling because
time limit for the completion of the work is limited and also managers and employees are
not available all the time.
DATA COLLECTION METHOD
53
Data for the present study is collected from two sources:
a. Primary:- The first hand information is collected with the responses of
questionnaire. For this purpose a questionnaire is given to the managerial staff of
the HDFC Bank. They were asked to choose the best alternative among the given
alternatives, as per their knowledge, experience and observation.
b. Secondary: - Secondary data will be collected from published sources like
Journals, Magazines, various newspapers and published books.
54
FINDINGS & ANALYSIS
55
HRM SYSTEM
1. Difference between Promotion Decision & Suitability of Promotee .
Always Sometimes Rarely Never Total
Managers 07(77.7%) 02(22.22%) 0% 0% 09
Employees 04(21.05%) 06(31.57%) 05(26.32%) 04(21.05%) 19
Total 11 08 05 04 28
Interpretation – Majority of the managers (77.7%) are saying that promotion decisions
are always based on suitability of the promotee and 21.05% employees favors them.
22.22% managers believe that promotion decisions sometimes depends on suitability of
the employees and this saying is supported by 31.57% of employees.
Whereas 26.32% employees says such things rarely happens and according to 21.05%
employees says that promotion decisions never depends on suitability of promote.
2. Is there any types of Practice like de-Jobbing.
56
Always Sometimes Rarely Never Total
Managers 2(22.22%) 5(55.56%) 2(22.3%) (0%) 09
Employees 1(5.26%) 2(10.52%) 15(79%) 1(5.26%) 19
Total 3 7 17 1 28
Interpretation – Majority of managers (22.22%) are saying that there is no more practice
of de-jobbing in the organization and (5.26%) employees are favors them. (22.3%)
managers says that de-jobbing depends upon the culture & the performance of
employees, this saying is supported by (10.52%). (22.3%) managers says such things
rarely happens & (79%) employees favors them. According to (5.26%) employees de-
jobbing practices never happens in the organization.
3. Difference between Job Rotation & Employee Development.
57
Always Sometimes Rarely Never Total
Managers 6(66.6%) 3(33.4%) (0%) (0%) 09
Employees 12(63.16%) 1(5.26%) 5(26.32%) 1(5.26%) 19
Total 18 4 5 1 28
Interpretation – Majority of managers (66.6%) are saying that job rotation are always
based on the employee development (63.16%) favors them. (33.4%) managers believe
that job rotation sometimes depends on the employee development & this saying is
supported by (5.26%) employees. Whereas (26.32) employees says such things rarely
happens & according to (5.26%) employees says that job rotation practiced never
depends on employee development.
5. Is there any type of Reward provide to employee for Motivation.
58
Always Sometimes Rarely Never Total
Managers 5(55.5%) 4(44.5%) (0%) (0%) 09
Employees 5(26.32%) (0%) 12(63.16%) 2(10.52%) 19
Total 10 4 12 2 28
Interpretation – Majority of managers (55.5%) are saying that job rotation in the
organization is helpful for rewarding the employees (26.32%) favors them. (44.5%)
managers believe that job rotation sometimes depends on the employee development.
Whereas (63.16) employees says such things rarely happens & according to (10.52%)
employees says that job rotation practiced never facilitates employee development.
4. What is the diffeence level between Performance Appraisal & Employee’s
Assessments.
59
Always Sometimes Rarely Never Total
Managers 8(88.89%) 1(11.11%) (0%) (0%) 09
Employees 3(15.8%) 4(21.05%) 9(47.37%) 3(15.8%) 19
Total 11 5 9 3 28
Interpretation – Majority of the managers (88.89%) are saying that performance
appraisals are always based on employee assessment and (15.8%) employees favors
them. (11.11%) managers believe that performance appraisal sometimes depends on
employees assessment & this saying is supported by (21.05%) employees. Whereas
(47.37%) employees says such things rarely happens & according to (15.8%) employees
says that performance appraisal never depends on the employee assessment.
5. Is Employees learning from training programmes.
Always Sometimes Rarely Never Total
Managers 7(77.8%) 1(11.11%) 1(11.11%) (0%) 09
60
Employees 18(94.8%) 1(5.26%) (0%) (0%) 19
Total 25 2 1 0 28
Interpretation – Majority of the managers (77.8) are saying that for employee’s
development training programme are beneficial if they are taking seriously and (94.8%)
employees favors them. (11.11%) managers believe that training programme sometimes
depends on learning capability of the employee’s & this saying is supported by (5.26%)
employees.
6. Is Opportunities given to the Employees to try out what they have learned in
training.
61
Always Sometimes Rarely Never Total
Managers 9(100%) (0%) (0%) (0%) 09
Employees 12(63.16%) 5(26.32%) 1(5.26%) 1(5.26%) 19
Total 21 5 1 1 28
Interpretation – Majority of the managers (100%) are saying that opportunities given to
the employees to find out what they are learning from training and (63.16%) employees
favors them. (26.32%) employees believes that by that opportunities are helpful for
learning so many things. Whereas (5.26%) employees says such things rarely happens &
according to (5.26%) employees says that opportunities never depends upon what they
learned.
7. Did Managers Guide their trainees.
62
Always Sometimes Rarely Never Total
Managers 9(100%) (0%) (0%) (0%) 09
Employees 17(89.47%) 2(10.53%) (0%) (0%) 19
Total 26 2 00 00 28
Interpretation – Majority of the managers (100%) are saying that mangers always guide
their trainees and (89.47%) employees favors them. (10.53%) employees believes that
mangers sometimes guides their trainees.
8. Is Top Management Investing Considerable Time for the Development of
Employees.
63
Always Sometimes Rarely Never Total
Managers 8(88.89%) 1(11.11%) (0%) (0%) 09
Employees 5(26.32%) 4(21.05%) 4(21.05%) 6(31.58%) 19
Total 13 5 4 6 28
Interpretation – Majority of the managers (88.89) are saying that top management gives
considerable time for the development of the employees and (26.32%) employees favors
them. (11.11%) managers believe that top management sometimes depends on the
employees how much they are getting & this saying is supported by (21.05%) employees.
Whereas (21.05%) employees says such things rarely happens & according to (31.58%)
employees says that top management never gives the considerable time to employees.
9. Is there employees participation in decision making.
Always Sometimes Rarely Never Total
Managers (0%) 7(77.7%) 2(22.3%) (0%) 09
64
Employees 2(10.52%) 7(36.84%) 6(31.57%) 4(21.05%) 19
Total 2 14 8 4 28
Interpretation – Majority of the employees (10.52%) are saying that managers
participation is there in decision making of organization. (77.7%) managers participates
in decision making & this saying is supported by (36.84%) of employees. Whereas
(22.3%) managers says such things rarely happens & (31.57%) employees are favors
them. (21.05%) employees says that participation never depends on the managers.
10. Is there any appreciation for good work.
Always Sometimes Rarely Never Total
Managers 8(88.9%) 1(11.11%) (0%) (0%) 09
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Employees 2(10.52%) 5(26.32%) 8(42.1%) 4(21.05%) 19
Total 10 6 8 4 28
Interpretation – Majority of the managers (88.9%) are saying that appreciation of good
work can motivates the employees and (10.52%) employees favors them. (11.11%)
managers believe that appreciation sometimes important & this is supported by (26.32%)
employees. Whereas (42.1%) employees says such things rarely happens & according to
(21.05%) employees says that appreciation for good work never happens.
11. Are employees feeling hesitation to discuss their problems to seniors.
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Always Sometimes Rarely Never Total
Managers (0%) (0%) 2(22.3%) 7(77.7%) 09
Employees (0%) (0%) 2(10.52%) 17(89.47%) 19
Total 00 00 4 24 28
Interpretation – Majority of the managers (22.3%) says employees rarely hesitation to
discuss their problems to managers & (10.52%) employees are favors them. (77.77%)
managers says that employees never hesitate to discuss their feelings to mabagers &
(89.47%) employees are supporting this.
12. Is there higher order team spirit.
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Always Sometimes Rarely Never Total
Managers 9(100%) (0%) (0%) (0%) 09
Employees 19(100%) (0%) (0%) (0%) 19
Total 28 00 00 00 28
Interpretation – Majority of the managers (100%) are saying that higher older team
spirit amongs employees is most important to achieve selected goals and (100%)
employees favors them.
13. What is the Employee satisfaction level.
68
Always Sometimes Rarely Never Total
Managers 4(45%) 5(55%) (0%) (0%) 09
Employees 10(53%) 9(47%) (0%) (0%) 19
Total 14 14 00 00 28
Interpretation – Majority of the managers (45%) says employees always satisfied and
(55%) sometimes and employees are satisfied (53%) always and (47%) sometiems.
14. Are all employees working towards the common goal.
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Always Sometimes Rarely Never Total
Managers 9(100%) (0%) (0%) (0%) 09
Employees 19(100%) (0%) (0%) (0%) 19
Total 28 00 00 00 28
Interpretation – Majority of the managers (100%) are working for the common goal and
employees are also (100%) working for the common goal.
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15 When behaviour feedback is given to employees they take it seriously and use it
for development.
Always Sometimes Rarely Never Total
Managers 5(55.5%) 4(44.5%) (0%) (0%) 09
Employees (0%) (0%) (0%) (0%) 00
Total 5 4 0 0 09
REMARK:- This question is only for managers.
Interpretation – Majority of the managers (55.5%) are saying that behavioral feedback
is given to the employees if they are taking seriously; it is helpful for employee’s
development. Whereas (44.5) managers believes that behavioral feedback depends on the
feedback of the employees.
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SUGGESTIONS
1. Since HDFC Bank doesn’t have any standardized policy for promotion and it is also
revealed from one of the findings highlighting favouritism. Hence it is suggested that
the promotional policy based on seniority (time scale) followed by merit, be framed.
2. The bank should adopt job rotation wherever the work is repetitive in nature. It not
only facilitates employee development but also act as a potent tool for training.
Beside this it also act as motivational tool to cope up with monotony and boredom at
job. Job rotation also helps an employee to get hands on experience on different
aspect of the job within a section / department which makes him suitable at the time
of promotion.
3. Although a system to reward any good work / contribution made by the employee
exist in HDFC Bank but the reward doesn’t come at the right time. Hence it is
suggested that if any good work is reported or valuable suggestion is given by
employee, enhancing productivity or reducing losses it should be immediately
followed by some rewards, to be specific monetary reward, as most of them
(employees) look for.
4. It is highly recommended that the HDFC Bank should adopt proper Performance
Appraisal methods as it will not only remove the subjective assessment of the
employees as been done in the organisation but also make the assessment more
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practical, objective and free from biasness. Such practices will definitely build
confidence, courage and commitment in the employees.
5. Findings reveal that behavioral feedback is seriously taken by the employees
for their development. Hence the supervisor should be provided training on
identifying the critical behaviour and implementing behaviour modification
techniques. The Bank should conduct workshops on behavioral issues on
regular basis.
6. It is certain that in HDFC Bank both managers and employees agree that they
learn from training programme and the organisation provide them
opportunities to try out the learned practices but post training evaluation and
feedback mechanism do not exists. To ascertain the effectiveness of such
training, structured feedback mechanism should be developed.
7. Delegation of authority should be practiced by the mangers of the
organisation. It should be a regular feature based on nature of work and
capability of subordinates.
8. Employee should be encouraged to take part in routine and administrative
decisions making as it is conducive to reach the stage of industrial democracy,
giving equal importance to both.
9. There exists a gap between managers and employees opinion regarding
appreciation of employees of HDFC Bank. The bank should practice non-
74
financial appreciation methods viz. Appreciation letter, Certificate,
recognition through displays on Notice Boards / News Letters, provision for
Job enrichment, etc., as they are helpful in building and maintaining
motivation of the employees.
10. The finding reveal that in HDFC Bank problems are openly discussed and
solved, team spirit of higher order, efforts are done to acquire competence and
people in the organisation are helpful to each other. This is a good sign of
healthy HRD Climate in the organisation. Efforts should be made to maintain
the status quo.
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LIMITATIONS
A few limitations and constraints came in way of conducting the present study, under
which the researcher had to work are as follows:
Ø Although all attempts were made to make this an objective study, biases on
the part of respondents might have resulted in some subjectivity.
Ø Though, no effort was spared to make the study most accurate and useful,
the “sample Size” selected for the same may not be the true representative of
the Bank, resulting in biased results.
Ø This being the maiden experience of the researcher of conducting study such
as this, the possibility of better results, using deeper statistical techniques in
analyzing and interpreting data may not be ruled out.
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78
CONCLUSION
After having analyzed the data, it was observed that practically there was no proper
HRD system in the organization. To be an effective tool, it has to be on the continuous
basis. This is the thing that has been mentioned time and again in the report, as, in the
absence of continuity, it becomes a redundant exercise. Before actually deciding
drafting what should be the kind of development system, the following things should be
taken care of:
1. The very concept of human resource development should be marketed throughout
the organization. Unless this is done, people would not accept it, be it how
important to the organization.
2. To market such a concept, it should not start at bottom, instead it should be started
by the initiative of the top management. This would help in percolating down the
concept to the advantage of all, which includes the top management as well as those
below them. This means that the top management has to take a welcoming and
positive approach towards the change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employee’s work
must be done – which must incorporates both the work related as well as the other
personal attributes that are important for work performance.
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4. It should be noted that the development system for each job position should be
different as each job has different knowledge and skill requirements. There should
not be a common appraisal form for every job position in the organization.
5. The job and role expected from the employees should be decided well in advance
and that too with the consensus with them.
6. A neutral panel of people should do the appraisal and to avoid subjectivity to a
marked extent, objective methods should be employed having quantifiable data.
7. The time period for conducting the development system be revised, so that the
exercise becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the
grey areas so that training can be implemented to improve on that.
Ideally in the present day scenario, human resource development system should be
done, taking the views of all the concerned parties who have some bearing on the
employee. But, since a change in the system is required, it cannot be a drastic one.
It ought to be gradual and a change in the mindset of both the employees and the
head is required.
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BIBLIOGRAPHY
Books:1) Awasthapa. K (2001) “Human Resource Management” Tata MC Graw Hill 5th edition
2) Bernadi (2000) “Human Resource Management” Tata Graw Hill 4th edition
3) Desslar Gary (2003), “Human Resource Management” Prentice, Hall of India Put
9th edition
4) Kothari CR (2000) “Research Methodology” method & technology, New Delhi
Wishwa Prakashan
5) Memoria C.B Grankar S.V (2002) “Personnel Management” Himalaya Publishing
House, 22 editions
WEBSITES:
1. www.hrdnetworks.com
2. www.hrdindia.com
3. www.hdfcbank.com
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ANNEXURE
QUESTIONNAIRE
1. Difference between Promotion Decision & Suitability of Promotee .
Always Sometimes Rarely Never Total
Managers
Employees
2. Is there any types of Practice like de-Jobbing.
Always Sometimes Rarely Never Total
Managers
Employees
3. Difference between Job Rotation & Employee Development.
Always Sometimes Rarely Never Total
Managers
Employees
5. Is there any type of reward provide to employee for Motivation.
Always Sometimes Rarely Never Total
Managers
Employees
83
4. What is the diffeence level between Performance Appraisal & Employee’s
Assessments.
Always Sometimes Rarely Never Total
Managers
Employees
5. Is Employees learning from training programmes.
Always Sometimes Rarely Never Total
Managers
Employees
6. Is Opportunities given to the Employees to try out what they have learned in
training.
Always Sometimes Rarely Never Total
Managers
Employees
7. Did Managers Guide their trainees.
Always Sometimes Rarely Never Total
Managers
Employees
84
8. Is Top Management Investing Considerable Time for the Development of
Employees.
Always Sometimes Rarely Never Total
Managers
Employees
9. Is there employees participation in decision making.
Always Sometimes Rarely Never Total
Managers
Employees
10. Is there any appreciation for good work.
Always Sometimes Rarely Never Total
Managers
Employees
11. Are employees feeling hesitation to discuss their problems to seniors.
Always Sometimes Rarely Never Total
Managers
Employees
85
12. Is there higher order team spirit.
Always Sometimes Rarely Never Total
Managers
Employees
13. What is the Employee satisfaction level.
Always Sometimes Rarely Never Total
Managers
Employees
14. Are all employees working towards the common goal.
Always Sometimes Rarely Never Total
Managers
Employees
15. When behaviour feedback is given to employees they take it seriously and use it for
development.
Always Sometimes Rarely Never Total
Managers
Employees
86