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Hr Practices and Policies on Bank

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EXECUTIVE SUMMARY
HDFC was incorporated in 1977 with the primary objective of meeting a
social need that of promoting home ownership by providing long-term finance
to households for their housing needs. . HDFC was promoted with an initial
share capital of Rs.100 million

Against the milieu of rapid urbanization and a changing socio-economic scenario, the
demand for housing has grown explosively. The importance of the housing sector in the
economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total demand for housing is estimated at 2 million units
per year and the total housing shortfall is estimated to be19.4 million units, of which12.76
million units is from rural areas and 6.64 million units from urban areas. The housing
industry is the second largest employment generator in the country. It is estimated that the
budgeted 2 million units would lead to the creation of an additional10 million man-years of
direct employment and another 15 million year of indirect employment.

HDFC BANK at Connaught Circus, H Block, Connaught Place, New

Delhi, is one of the most famous, trustworthy and successful banks in India. It
is a private bank and came into existence in August 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 1412 branches spread over 528 cities across India. All
1

branches are linked on an online real-time basis. Customers in over 500
locations are also serviced through Telephone Banking. The Bank's expansion
plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products.
Being a clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centres.
The Bank also has a network of about over 3295 networked ATMs across
these cities. Moreover, HDFC Bank's ATM network can be accessed by all
domestic

and

international

Visa/MasterCard,

Visa

Electron/Maestro,

Plus/Cirrus and American Express Credit/Charge cardholders

2

CHAPTER NO. 1

INTRODUCTION









STATEMENT OF PROBLEM
NEED FOR STUDY
SCOPE OF STUDY
OBJECTIVES OF STUDY
RESEARCH METHODOLOGY
LIMITATION
SCHEME OF RESEARCH
RESEARCH DESIGNEXPLORATORY/DESCRIPTIVE/CAUSATIVE

STATEMENT OF THE PROBLEM
3

The topic selected for the study is “A study on HR Practices of HDFC
BANK”. The main theme of the project is the analysis and interpretation of
practices of the employees using HR practices as a tool.
It is prepared to know whether the company is preparing well or not;
performance of the company and about its competitiveness by the analysis and
interpretation of the HR practices.
A critical study of the effectiveness of HR practices system and suggest ways
for improvement.
The problem lies in identifying relationship, mutual understanding between
the management and the employees.
The HR practices system provides detailed information about person so that
the management can take appropriate steps to improve and achieve the
organization goals and help to maintain the smooth relationship between them.

NEED OF THE STUDY
 Provides information about the performance ranks, basis on which
decision regarding salary fixation, confirmation, promotion, transfer
and demotion are taken.
 Provide feedback information about the level of achievement and
behavior of subordinate this information helps to review the
performance of the subordinate, rectifying performance deficiencies
and to set new standards of work, if necessary.
 Provide information to diagnose deficiency in employee regarding
skill, knowledge, determine training and developmental needs and to
prescribe the means for employee growth provides information for
correcting placement.

SCOPE OF THE STUDY
The scope of the research is very vast; however the total time period available
was very limited for the purpose of the study observation, analysis and
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conclusion. Second important thing is on account of ethical and moral
obligation of a manager disclosure of all pertained and particular policies has
got limitation because of his positional accountability and responsibility,
Studying “organization effectiveness through HR practice” of the employee as
specialized subject restrict a training, recruitment and selection, job analysis,
performance appraisal for entering into HR practice of different parameter as
well as view of the company. The finding of the study can be refried to as a
reference for entire organizational policies, parameter and particles.

OBJECTIVE OF THE STUDY
This study belongs to organization effectiveness through HR practice. In this
we are studying how organization is effected through HR practice. The main
objective to be studied:
Main objective
To find the relation and effect of HR practices with organization effectiveness.
Fragmented of the following parts:
To understand the recruitment procedure adopted by this company.
To identify the training and development program adopted by this
company.
To identify compensation salary increment policy adopted by this
organization.
To identify the present performance of an employee being appraised
through career advancement.
To provide better employee health, safety, welfare facilities as per their
standard policies.
To understand the quality circle is beneficial for solving the problem.
To understand the reason of employee turnover.

RESEARCH OBJECTIVES
5

The current research will be aimed at determining the HR Practices at HDFC
BANK. The research will be focused on the following major issues.
a) To study the significance of HR policies.
b) To study the system development at HDFC BANK
c) To measure the factors related to HR Practices and Policies.
d) To study the employee relation and executive response for
Practices and Policies in HDFC BANK.

RESEARCH METHODOLOGY
In order to cope up with the emerging challenges due to tough global
competitions, the way out for this is to produce quality products at reasonable
prices. This is possible only through an organization culture of quality
consciousness and enhanced productivity. Optimal utilization of resources
especially the human resources are one sure way of meeting this objective.
That’s why proper induction of an employee is very important.

LIMITATION
a) The time limit to complete the project was less.
b) The information provided by the company is not very specified and
clear in order to analyze the statement.
c) The basic nature of these statements is historical and past can never be
precise.
d) Analysis of primary data is done on the assumption that the answers
given by the respondents are true and correct.

SCHEME OF RESEARCH
The following methodology was adopted in project


Comprises of understanding the theoretical concepts in general.



Questionnaire study



Analysis of the primary data



Analysis of the secondary data
6

RESEARCH DESIGN
Research design means a specified framework for controlling the data
collection. The research is of descriptive in nature, which could provide an
accurate picture of induction procedure conducted in the organization.
Descriptive research includes surveys and fact-finding inquiries of different
kinds. The research is of Ex post facto nature in which researcher no control
over the variables has. Statistical method lay stress on objectivity rather than
rely on intuition and judgment and average & percentages can easily be
calculated.
The statically method needs the collection of data in two forms
1. Primary data
2. Secondary data
1.

PRIMARY DATA

The primary data are those, which are collected afresh and for the first time,
and thus happen to be original in character. The data on the required
information is collected from actual persons using the product/ services. This
data is more suited for the objectives of the project.

2. SECONDARY DATA
The data which have already been collected by someone else or taken from
published or unpublished sources and which have been already been passed
through the statistical process.

MODE OF DATA COLLECTION
The study is based on Secondary data which includes:Secondary Data will be gathered from books and journals on HR Practices in
HDFC BANK.
7

CHAPTER NO. 2
8

INTRODUCTION OF HR PRACTICES
 HUMAN RESOURCES DEVELOPMENT
 MODERN CONCEPT OF HUMAN RESOURCES
 HR POLICIES AND PROCEDURES

INTRODUCTION OF HR PRACTICES
This study belongs to organization effectiveness through HR practice. In this
we are studying how organization is effected through HR practice.
The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administration,
kept personal files and other records, managed the hiring process, and
provided other administrative support to the business. Those times have
changed.
The positive result of these changes is that HR professionals have the
opportunity to play a more strategic role in the business. The challenge for HR
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managers is to keep up to date with the latest HR innovations—technological,
legal, and otherwise.
This special report will discuss the best practices in HR management for 2010
—in other words, how HR managers can anticipate and address some of the
most challenging HR issues this year. This report will give you the
information you need to know about these current HR challenges and how to
most effectively manage them in your workplace.
Human resources is an increasingly broadening term with which an
organization, or other human system describes the combination of traditionally
administrative personnel functions with acquisition and application of skills,
knowledge and experience, Employee Relations and resource planning at
various

levels.

The

field

draws

upon

concepts

developed

in

Industrial/Organizational Psychology and System Theory. Human resources
have 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', and can go beyond just organizations to the
level of nations. 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.
The objective of human resources development (the `s' is important in human
resource`s' in that it underscores indiduality/variability) is to foster human
resourcefulness through enlightened and cohesive policies in education,
training, health and employment at all levels, from corporate to national
(Lawrence 2000) 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

10

managers in a corporate context to conduct these activities in an effective,
legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Recruitment & Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at
work
10. Career development
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 identifying 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
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experience in various ways, and move from one enterprise to another with
little controversy or difficulty in adapting. Another view is that governments
should become more aware of their national role in facilitating human
resources development across all sectors.
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.
In a series of reports of the UN Secretary-General to the General Assembly, a
broad inter-sectoral approach to developing human resourcefulness has been
outlined as a priority for socio-economic development and particularly antipoverty strategies. This calls for strategic and integrated public policies, for
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example in education, health, and employment sectors that promote
occupational skills, knowledge and performance enhancement (Lawrence,
J.E.S. 2000).
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.
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-economic 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 macroeconomics 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.

2.1 HUMAN RESOURCES DEVELOPMENT
In organizations, in terms of sex and selection it is important to consider
carrying out a thorough job analysis to determine the level of skills/technical
abilities, competencies, flexibility of the employee required etc. At this point it
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is important to consider both the internal and external factors that can have an
effect on the recruitment of employees. The external factors are those out-with
the powers of the organization and include issues such as 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 easier to control,
predict and monitor, for example management styles or even the
organizational culture.
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. Traditional 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 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.

In regard to how individuals respond to the changes in a labour market the
following should be understood:


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.
14



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.

While recruitment methods are wide and varied, it is important that the job is
described correctly and that any personal specifications are stated. Job
recruitment

methods

can

be

through

job

centres,

employment

agencies/consultants, headhunting, and local/national newspapers. It is
important that the correct media is chosen to ensure an appropriate response to
the advertised post.
Human Resources Development is a framework for the expansion of human
capital within an organization or (in new approaches) a municipalty, 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 resourcefulness. Adam Smith states,
“The capacities of individuals depended on their access to education”. Kelly
D, 2001Human 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 learning objective” (Nadler,1984) Within a national
context, it becomes a strategic approach to intersectoral linkages between
health, education and employment 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
15

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
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 business its human resource by, “attaining or
upgrading the skills and attitudes of employees at all levels in order to
maximize 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). 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 accompanying brain-drain they experience.

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2.2 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.
Human resource policies are systems of codified decisions, established by an
organization, to support administrative personnel functions, performance
management, employee relations and resource planning.
Each company has a different set of circumstances, and so develops an
individual set of human resource policies.
Purposes
HR policies allow an organization to be clear with employees on:


The nature of the organization



What they should expect from the company



What the company expects of them



How policies and procedures work at your company



What is acceptable and unacceptable behaviour



The consequences of unacceptable behaviour
17

The establishment of policies can help an organization demonstrate, both
internally and externally, that it meets requirements for diversity, ethics and
training as well as its commitments in relation to regulation and corporate
governance. For example, in order to dismiss an employee in accordance with
employment law requirements, amongst other considerations, it will normally
be necessary to meet provisions within employment contracts and collective
bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behaviour and document displinary procedures, is
now the standard approach to meeting these obligations.
Developing the HR Policies
HR policies provide an organization with a mechanism to manage risk by
staying up to date with current trends in employment standards and legislation.

2.3 HR POLICIES AND PROCEDURES
This factsheet gives introductory guidance. It:


Highlights the main policies and procedures that organizations need to
consider



Looks at formatting a policy and sources of information

Introducing HR policies and procedures gives organizations the opportunity to
offer a fair and consistent approach to managing their staff. For more on why
HR policies are introduced, see our factsheet HR policies and procedures: why
introduce them?
11 Policy or practice areas those are crucial to effective people management
and development:


Recruitment and selection



Training and learning/development



Career opportunities
18



Communication



Employee involvement



Team working



Performance appraisal



Pay satisfaction



Job security



job challenge/job autonomy



Work-life balance.

Not all policies and procedures will be relevant to all organizations, and some
policies are required by law while others are to promote good practice.
The following paragraphs indicate the range of possible policies which apply
during the employment life cycle - more detailed information and the legal
requirements on each of these areas is included.
Beginning employment
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills,
expertise and qualifications to deliver organizational objectives and who have
the ability to make a positive contribution to the values and aims of the
organization. A diverse workforce that reflects customer groups in the local
community should be encouraged.
Elements to consider when forming a recruitment policy:


job profile/person specification

19



dealing with job applications - whether to use hard copy and/or online
forms; confidentiality



recruitment advertising - discrimination pitfalls



selection techniques - training and validation



interviews



references



medical examinations



asylum and immigration



documentation



job analysis



equal opportunities monitoring



return on investment (ROI)/cost.

There's more information on the website via our Recruitment and talent
management subject pages.
Induction
Designing an appropriate and cost-effective induction programme is a
complex task. The programme has to find a balance between providing all the
information new employees need without overwhelming or diverting them
from integrating into the team.
The length and nature of the induction process will depend on the complexity
of the job and the background of the new employee.
Elements of an induction policy:
20



organization information - background and structure; departments;
products and services; physical layout



terms and conditions - hours of work; holidays, travel policy



financial - pay; bonuses; overtime; pensions



culture and values - communication



rules and procedures - data protection; email and Internet usage; equal
opportunities; use of mobile phones



health and safety - first aid; smoking; environmental aspects



training



trade unions



welfare, benefits and facilities - alcohol and drugs; employee
assistance programmes.

Organizations may find it useful to have checklists that cover the preemployment period, the first day, the first week, the first month and the end of
the probationary period (if applicable) to make sure everything has been
explained.
There's more information on the website via our Induction subject page.
During employment
Employee relations look at the partnership between employee and employer,
covering areas such as communication, grievances and discipline. It is equally
important in both union and non-union situations. While employment law is
closely linked with managing employee relations, a successful organization
won't just base its actions on compliance with the law - exploring the concept
of the psychological contract, based on trust between employee and employer,
may also be useful.
21

Policies and procedures that organizations may introduce include:


health and safety



disciplinary and grievance



maternity and paternity leave and pay



redundancy



absence



whistle blowing



performance management



recognition agreements (union and other)



time off and leave for trade union activities, holidays, secondment,
volunteering, eldercare, childcare, bereavement



communication and involvement, including employee voice



harassment and bullying.

There's more information on many of these issues on the website via our HR
practice, Health, safety and wellbeing and Employment law subject pages.
Managing diversity
Diversity runs through all aspects of an organization’s policies. Managing and
valuing diversity is central to good people management and makes good
business sense, so it also makes sense for diversity to be integral within all
policies. A diversity policy sets out the organisation's vision and values in
relation to diversity. It will often include the remit of polices, the processes for
taking action, who is responsible and the training available.

22

The basic premise is that people should be valued as individuals and for
reasons related to business interests, as well as for moral and social reasons. A
more diverse workforce is likely to offer a wider range of skills and
experiences and greater flexibility to meet business challenges.
Elements of a diversity policy:


gender/sex equality



race equality



sexual orientation



religion



age



appearance/accent



formats and accessibility of policies and procedures.

Learning, training and development
Roles and responsibilities are constantly changing, so employees will need to
continually renew and refresh their skills and competences through training.
This can happen in the course of normal working (on-the-job training) or away
from the workplace (off-the-job training).
Some training is mandatory to comply with legal requirements, such as health
and safety or finance.
Elements of a learning and development policy:


the organization’s vision for learning and development



opportunities available, including secondment, career breaks, courses,
coaching, mentoring
23



who to ask to get authorization for training



support given for learning opportunities



development reviews and personal development plans



payment of professional fees



training available for 'peripheral' workers ie contractors, temporary
staff



record-keeping and administration



continuing professional development and personal development
allowances (if these are not part of the employee benefits statement)



follow-up actions and transfer of learning to work.

Reward
Effective reward practices and procedures can underpin activities in
recruitment, retention, turnover and engagement. Effective implementation
and communication are essential for initiatives to succeed.
Reward policies should be clear and simple so that employees know what's
expected of them and what they can expect to receive in return.
Elements of a reward policy:


the organization’s vision for reward, including market rates, extra
responsibility allowances



how jobs are graded or evaluated



pensions/additional voluntary contributions



permanent health insurance/critical illness cover
24



bonuses and incentive pay



benefits and non-cash recognition



company cars



sick pay



pay reviews



Equal pay.

Complementary policies
Other policies that organizations may want to consider in relation to
employment include:


a mission or values statement



parental leave



work-life balance/family-friendly work practices



disability



well-being and 'wellness'



green/sustainable development



the employment of relatives/friends



conflict of interest, including personal relationships



second jobs



confidentiality



bad weather/climate conditions
25



relocation



Suggestion schemes.

Ending employment
There are many reasons why employment ceases, from voluntary resignation
to dismissal or redundancy.
Areas to consider for ending employment include:


dismissal



redundancy



voluntary resignation



retirement - retirement age; pre-retirement courses; phased retirement
options



end of a short-term contract



end of a probationary period



death in service.

Exit surveys can record information about why employees say they are
leaving. But the data is not always reliable. Another way to discover the
reasons why is through opinion surveys during employment.
Formatting a policy
Policies should be written in plain English, so that they are user-friendly and
easily understood by all employees.
The culture of the organization and the complexity of the policies will dictate
the format. Options include:


separate manager and employee manuals
26



all policies available on an intranet



Key policies on notice boards.

Policies should also indicate who to go to with queries about the content and
who is responsible for updating and reviewing them.

27

CHAPTER NO. 3

BANKING SECTOR
PROFILE OF HDFC BANK
 MANAGEMENT OF HDFC BANK
 BUSINESSES
 AWARDS & ACHIEVEMENTS

INTRODUCTION TO BANKING SECTOR IN INDIA

28

Banking in India originated in the last decades first banks were The General
Bank of India, which started in 1786, and Bank of Hindustan, which started in
1770; both are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British
East India Company. For many years the Presidency banks acted as quasicentral banks, as did their successors. The three banks merged in 1921 to form
the Imperial Bank of India, which, upon India's independence, became the
State Bank of India in 1955.
History
Merchants in Calcutta established the Union Bank in 1839, but it failed in
1840 as a consequence of the economic crisis of 1848-49. The Allahabad
Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India.(Joint Stock Bank: A company that issues stock and requires
shareholders to be held liable for the company's debt) It was not the first
though. That honor belongs to the Bank of Upper India, which was established
in 1863, and which survived until 1913, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Simla.

29

Foreign banks too started to app, particularly in Calcutta, in the 1860s. The
Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and
another in Bombay in 1862; branches in Madras and Pondicherry, then a
French colony, followed. HSBC established itself in Bengal in 1869. Calcutta
was the most active trading port in India, mainly due to the trade of the British
Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank,
established in 1881 in Faizabad. It failed in 1958. The next was the Punjab
National Bank, established in Lahore in 1895, which has survived to the
present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through
a relative period of stability. Around five decades had elapsed since the Indian
Mutiny, and the social, industrial and other infrastructure had improved.
Indians had established small banks, most of which served particular ethnic
and religious communities.
The presidency banks dominated banking in India but there were also some
exchange banks and a number of Indian joint stock banks. All these banks
operated in different segments of the economy. The exchange banks, mostly
owned by Europeans, concentrated on financing foreign trade. Indian joint
stock banks were generally undercapitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This
segmentation let Lord Curzon to observe, "In respect of banking it seems we
are behind the times. We are like some old fashioned sailing ship, divided by
solid wooden bulkheads into separate and cumbersome compartments."
The period between 1906 and 1911, saw the establishment of banks inspired
by the Swadeshi movement. The Swadeshi movement inspired local
businessmen and political figures to found banks of and for the Indian
community. A number of banks established then have survived to the present
such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.
30

The fervour of Swadeshi movement lead to establishing of many private banks
in Dakshina Kannada and Udupi district which were unified earlier and known
by the name South Canara ( South Kanara ) district. Four nationalised banks
started in this district and also a leading private sector bank. Hence undivided
Dakshina Kannada district is known as "Cradle of Indian Banking".
During the First World War (1914–1918) through the end of the Second World
War (1939–1945), and two years thereafter until the independence of India
were challenging for Indian banking. The years of the First World War were
turbulent, and it took its toll with banks simply collapsing despite the Indian
economy gaining indirect boost due to war-related economic activities. At
least 94 banks in India failed between 1913 and 1918 as indicated in the
following table:
Number of banks

Authorised capital

Paid-up Capital

that failed

(Rs. Lakhs)

(Rs. Lakhs)

1913

12

274

35

1914

42

710

109

1915

11

56

5

1916

13

231

4

1917

9

76

25

1918

7

209

1

Years

Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab
and West Bengal, paralyzing banking activities for months. India's
independence marked the end of a regime of the Laissez-faire for the Indian
banking. The Government of India initiated measures to play an active role in
the economic life of the nation, and the Industrial Policy Resolution adopted
by the government in 1948 envisaged a mixed economy. This resulted into
greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:
31



The Reserve Bank of India, India's central banking authority, was
established in April 1935, but was nationalized on January 1, 1949
under the terms of the Reserve Bank of India (Transfer to Public
Ownership) Act, 1948 (RBI, 2005b).



In 1949, the Banking Regulation Act was enacted which empowered
the Reserve Bank of India (RBI) "to regulate, control, and inspect the
banks in India".



The Banking Regulation Act also provided that no new bank or branch
of an existing bank could be opened without a license from the RBI,
and no two banks could have common directors.

Nationalisation

Banks Nationalisation in India: Newspaper Clipping, Times of India, July 20,
1969
Despite the provisions, control and regulations of Reserve Bank of India,
banks in India except the State Bank of India or SBI, continued to be owned
and operated by private persons. By the 1960s, the Indian banking industry
had become an important tool to facilitate the development of the Indian
economy. At the same time, it had emerged as a large employer, and a debate
had ensued about the nationalization of the banking industry. Indira Gandhi,
then Prime Minister of India, expressed the intention of the Government of
India in the annual conference of the All India Congress Meeting in a paper
32

entitled "Stray thoughts on Bank Nationalisation." The meeting received the
paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued
an

ordinance

('Banking

Companies

(Acquisition

and

Transfer

of

Undertakings) Ordinance, 1969')) and nationalised the 14 largest commercial
banks with effect from the midnight of July 19, 1969. These banks contained
85 percent of bank deposits in the country. Jayaprakash Narayan, a national
leader of India, described the step as a "masterstroke of political sagacity."
Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in
1980. The stated reason for the nationalization was to give the government
more control of credit delivery. With the second dose of nationalization, the
Government of India controlled around 91% of the banking business of India.
Later on, in the year 1993, the government merged New Bank of India with
Punjab National Bank. It was the only merger between nationalized banks and
resulted in the reduction of the number of nationalised banks from 20 to 19.
After this, until the 1990s, the nationalised banks grew at a pace of around 4%,
closer to the average growth rate of the Indian economy.
Liberalisation
In the early 1990s, the then Narasimha Rao government embarked on a policy
of liberalization, licensing a small number of private banks. These came to be
known as New Generation tech-savvy banks, and included Global Trust Bank
(the first of such new generation banks to be set up), which later amalgamated
with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank),
ICICI Bank and HDFC Bank. This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has seen rapid
growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.

33

The next stage for the Indian banking has been set up with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign
Investors in banks may be given voting rights which could exceed the present
cap of 10%,at present it has gone up to 74% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till
this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home
at 4) of functioning. The new wave ushered in a modern outlook and techsavvy methods of working for traditional banks.All this led to the retail boom
in India. People not just demanded more from their banks but also received
more.
Currently (2010), banking in India is generally fairly mature in terms of
supply, product range and reach-even though reach in rural India still remains
a challenge for the private sector and foreign banks. In terms of quality of
assets and capital adequacy, Indian banks are considered to have clean, strong
and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government. The stated policy of the Bank on
the Indian Rupee is to manage volatility but without any fixed exchange rateand this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some
time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to
be strong. One may also expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase
its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the
first time an investor has been allowed to hold more than 5% in a private
sector bank since the RBI announced norms in 2005 that any stake exceeding
5% in the private sector banks would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are
too aggressive in their loan recovery efforts in connection with housing,
34

vehicle and personal loans. There are press reports that the banks' loan
recovery efforts have driven defaulting borrowers to suicide.
Adoption of banking technology
The IT revolution had a great impact in the Indian banking system. The use of
computers had led to introduction of online banking in India. The use of the
modern innovation and computerisation of the banking sector of India has
increased many fold after the economic liberalisation of 1991 as the country's
banking sector has been exposed to the world's market. The Indian banks were
finding it difficult to compete with the international banks in terms of the
customer service without the use of the information technology and
computers.

Number of branches of scheduled banks of India as of March 2005
The RBI in 1984 formed Committee on Mechanisation in the Banking
Industry (1984)whose chairman was Dr C Rangarajan, Deputy Governor,
Reserve Bank of India. The major recommendations of this committee was
introducing MICR Technology in all the banks in the metropolis in India.This
provided use of standardized cheque forms and encoders.
In 1988, the RBI set up Committee on Computerisation in Banks (1988)
headed by Dr. C.R. Rangarajan which emphasized that settlement operation
must be computerized in the clearing houses of RBI in Bhubaneshwar,
Guwahati, Jaipur, Patna and Thiruvananthapuram.It further stated that there
35

should

be

National

Clearing

of

inter-city

cheques

at

Kolkata,Mumbai,Delhi,Chennai and MICR should be made Operational.It also
focused on computerisation of branches and increasing connectivity among
branches through computers.It also suggested modalities for implementing online banking.The committee submitted its reports in 1989 and computerisation
began form 1993 with the settlement between IBA and bank employees'
association.
In 1994, Committee on Technology Issues relating to Payments System,
Cheque Clearing and Securities Settlement in the Banking Industry (1994) was
set up with chairman Shri WS Saraf, Executive Director, Reserve Bank of
India. It emphasized on Electronic Funds Transfer (EFT) system, with the
BANKNET communications network as its carrier. It also said that MICR
clearing should be set up in all branches of all banks with more than 100
branches.
Committee for proposing Legislation on Electronic Funds Transfer and other
Electronic Payments (1995) emphasized on EFT system. Electronic banking
refers to DOING BANKING by using technologies like computers, internet
and

networking,MICR,EFT

so

as

to

increase

efficiency,

quick

service,productivity and transparency in the transaction.

PROFILE OF HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalisation of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

Trademark of “HDFC BANK”:
36

The HDFC Bank has merged with Times Bank Ltd in 2000. That was the first
merger of two private banks in India. In 2008, the bank has handed over on
Centurion Bank of Punjab taking its total of more than 1000 branches. The
total profit of bank is Rs 3,032.92 crores as year of 2010 and also the total
equity is Rs. 21,158.15 crores as 2010. HDFC Bank deals with three type
business section as Wholesale Banking Services, Retail Banking Services and
Treasury.
GOALS AND OBJECTIVES OF THE BANK:
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the
country through the provision of housing finance in a systematic and
professional manner, and to promote home ownership. Another objective is to
increase the flow of resources to the housing sector by integrating the housing
finance sector with the overall domestic financial markets.

Organizational Goals
1. Develop close relationships with individual households,
2. Maintain its position as the premier housing finance institution in the country,
3. Transform ideas into viable and creative solutions,
4. Provide consistently high returns to shareholders, and
VISION STATEMENT
OUR VISION IS OUR MISSION
37

Founded in 1907, this unique financial institution rests on the pillars of thrift,
fellowship, character, accommodation and the selfless service of all
individuals and organizations who wish to help themselves progress. We see
ourselves as a family of honest, loyal and committed professionals,
harmoniously employing technology, innovation and the human touch to
achieve customer satisfaction and goodwill are the cornerstones of our success
and the focus of all our efforts.
The prosperity of our customer is the engine of our success and they will find
in us a fast, timely, flexible, co-operative and competitive partner in their
progress. We are committed to approachability, simplicity and transparency in
our dealings with all our stakeholders and shall be a temple of their trust.
`We shall use our employee involvement and sense of togetherness to generate
high levels of teamwork, efficiency, excellence and profits. We shall mobilize
aggressively, invest wisely, disburse prudently, recover assiduously, reduce
costs and create a learning organization that offers products and services in
tune with and ahead of the time.

BUSINESSES
HDFC Bank caters to a wide range of banking services covering commercial
and investment banking on the wholesale side and transactional / branch
banking on the retail side. The bank has three key business segments:
Wholesale Banking
The Bank's target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, small & midsized corporate and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance
for facilitating superior supply chain management for its corporate customers.
Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia
of a number of leading Indian corporate including multinationals, companies
38

from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking
The objective of the Retail Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a
one-stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to customers through the growing
branch network, as well as through alternative delivery channels like ATMs,
Phone

Banking,

NetBanking

and

Mobile

Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a
leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card
in association with VISA (VISA Electron) and issues the MasterCard Maestro
debit card as well. The Bank launched its credit card business in late 2001. By
March 2012, the bank had a total card base (debit and credit cards) of over
19.71 million. The Bank is also one of the leading players in the "merchant
acquiring" business with over 180,000 Point-of-sale (POS) terminals for
debit / credit cards acceptance at merchant establishments. The Bank is well
positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments,
etc.
Treasury

39

Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities. With the liberalization of the financial markets in India,
corporate need more sophisticated risk management information, advice and
product structures. These and fine pricing on various treasury products are
provided through the bank’s Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

RATINGS
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Private
Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA
(FD)' [Triple A] by CARE, which represents instruments considered to be "of
the best quality, carrying negligible investment risk". CARE has also rated the
bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA
( ind )" rating to the Bank's deposit programme, with the outlook on the rating
as "stable". This rating indicates "highest credit quality" where "protection
factors are very high"
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated
by CARE and Fitch Ratings India Private Limited and its Tier I perpetual
Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has
assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while
Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". CARE has also assigned "CARE AAA
[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.
CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt
programme and Upper Tier II Bond issue. In each of the cases referred to
40

above, the ratings awarded were the highest assigned by the rating agency for
those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating agency,
The Credit Rating Information Services of India Limited (CRISIL). The rating
provides an independent assessment of an entity's current performance and an
expectation on its "balanced value creation and corporate governance
practices" in future. The bank was assigned a 'CRISIL GVC Level 1' rating in
January 2007 which indicates that the bank's capability with respect to wealth
creation for all its stakeholders while adopting sound corporate governance
practices is the highest.

ORGANIZATION CHART OF THE HDFC BANK.

MANAGEMENT OF HDFC BANK

41

MR. C.M. VASUDEV (CHAIRMAN OF HDFC BANK)
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect
from 6th July 2010. Mr. Vasudev has been a Director of the Bank since
October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career
in the civil services and has held several key positions in India and overseas,
including Finance Secretary, Government of India, Executive Director, World
Bank and Government nominee on the Boards of many companies in the
financial sector.

MR. ADITYA PURI (MANAGING DIRECTROR OF HDFC BANK)
The Managing Director, Mr. Aditya Puri, has been a professional banker for
over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's
operations in Malaysia.

42

The Bank's Board of Directors is composed of eminent individuals with a
wealth of experience in public policy, administration, industry and commercial
banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad
head various businesses and functions and report to the Managing Director.
Given the professional expertise of the management team and the overall
focus on recruiting and retaining the best talent in the industry, the bank
believes that its people are a significant competitive strength.

Promoter
Business Focus
Capital Structure
CBoP & Times Bank Amalgamation
Distribution Network
Technology
Businesses
Ratings

The descriptions of above topic are as mention below:PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets. Since its inception in
1977, the Corporation has maintained a consistent and healthy growth in its
operations to remain the market leader in mortgages. Its outstanding loan
43

portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to
build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with the
bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
As on 31st March, 2012 the authorized share capital of the Bank is Rs. 550
crore. The paid-up capital as on the said date is Rs. 469,33,76,540
(234,66,88,270 equity shares of Rs. 2/- each). The HDFC Group holds 23.15%
of the Bank's equity and about 17.29 % of the equity is held by the ADS /
GDR Depositories (in respect of the bank's American Depository Shares
(ADS) and Global Depository Receipts (GDR) Issues). 30.68 % of the equity
is held by Foreign Institutional Investors (FIIs) and the Bank has 4,47,924
shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository
Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the
symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed
on Luxembourg Stock Exchange under ISIN No US40415F2002.

44

CBoP & TIME BANK AMALGAMATION
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the
statutory and regulatory approval process. As per the scheme of amalgamation,
shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of
CBoP.
The merged entity will have a strong deposit base of around Rs. 1,22,000 crore
and net advances of around Rs. 89,000 crore. The balance sheet size of the
combined entity would be over Rs. 1,63,000 crore. The amalgamation added
significant value to HDFC Bank in terms of increased branch network,
geographic reach, and customer base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. /
Times Group) was merged with HDFC Bank Ltd., effective February 26,
2000. This was the first merger of two private banks in the New Generation
Private Sector Banks. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of
Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times
Bank.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of 2,620 branches spread in 1,454 cities across India.All branches are
linked on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank's expansion plans take into
account the need to have a presence in all major industrial and commercial
centres where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centres where the NSE/BSE have a strong and active member
base.
45

The Bank also has 10,316 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the bank's branches
have online connectivity, which enables the bank to offer speedy funds
transfer facilities to its customers. Multi-branch access is also provided to
retail customers through the branch network and Automated Teller Machines
(ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world
class bank. The Bank's business is supported by scalable and robust systems
which ensure that our clients always get the finest services we offer.
The Bank has prioritised its engagement in technology and the internet as one
of its key goals and has already made significant progress in web-enabling its
core businesses. In each of its businesses, the Bank has succeeded in
leveraging its market position, expertise and technology to create a
competitive advantage and build market share.
BUSINESSES
HDFC Bank caters to a wide range of banking services covering commercial
and investment banking on the wholesale side and transactional / branch
banking on the retail side. The bank has three key business segments:
Wholesale Banking
The Bank's target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, small & midsized corporates and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
46

including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance
for facilitating superior supply chain management for its corporate customers.
Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia
of a number of leading Indian corporates including multinationals, companies
from the domestic business houses and prime public sector companies. It is
recognised as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange
members and banks.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a
one-stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to customers through the growing
branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against
marketable securities, Personal Loans and Loans for Two-wheelers. It is also a
leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card
in association with VISA (VISA Electron) and issues the MasterCard Maestro
debit card as well. The Bank launched its credit card business in late 2001. By
March 2012, the bank had a total card base (debit and credit cards) of over
19.71 million. The Bank is also one of the leading players in the "merchant
47

acquiring" business with over 180,000 Point-of-sale (POS) terminals for
debit / credit cards acceptance at merchant establishments. The Bank is well
positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments,
etc.
Treasury
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities. With the liberalisation of the financial markets in India,
corporates need more sophisticated risk management information, advice and
product structures. These and fine pricing on various treasury products are
provided through the bank’s Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.
RATINGS
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Private
Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA
(FD)' [Triple A] by CARE, which represents instruments considered to be "of
the best quality, carrying negligible investment risk". CARE has also rated the
bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA
( ind )" rating to the Bank's deposit programme, with the outlook on the rating
as "stable". This rating indicates "highest credit quality" where "protection
factors are very high"
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated
by CARE and Fitch Ratings India Private Limited and its Tier I perpetual
48

Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has
assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while
Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". CARE has also assigned "CARE AAA
[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.
CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt
programme and Upper Tier II Bond issue. In each of the cases referred to
above, the ratings awarded were the highest assigned by the rating agency for
those instruments.

Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating agency,
The Credit Rating Information Services of India Limited (CRISIL). The rating
provides an independent assessment of an entity's current performance and an
expectation on its "balanced value creation and corporate governance
practices" in future. The bank was assigned a 'CRISIL GVC Level 1' rating in
January 2007 which indicates that the bank's capability with respect to wealth
creation for all its stakeholders while adopting sound corporate governance
practices is the highest.

49

AWARDS AND ACHIVEMENTS
HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass 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.
It is extremely gratifying that our efforts towards providing customer
convenience have been appreciated both nationally and internationally.
2012
Forbes Asia
IBA

Fab 50 Companies - Winning for the 6th year
Banking - Best Online Bank

Technology

Awards - Best use of Business Intelligence

2011

- Best Customer Relationship Initiative
- Best Risk Management & Security Initiative
- Best use of Mobility Technology in Banking

Dun & Bradstreet

- Overall Best Bank

Banking Awards

- Best Private Sector Bank

2012

- Asset Quality - Private Sector
- Retail Banking -Private Sector

IDRBT

Banking Best Bank in 'IT for Operational Effectiveness'

Technology
Excellence

category
Awards

2011-12
Asia Money 2012
India's

Top

Best Domestic Bank in India
500 Best Bank in India

Companies -Dun &
Bradstreet Corporate
Awards

50

Finance Asia

- Best Managed Company
- Best CEO - Mr. Aditya Puri

UTI

Mutual

CNBC

Fund - Best Performing Bank - Private

TV

Financial

18

Advisor

Awards 2011
Asian

Banker - Best Retail Bank in India

International

- Best Bancassurance

Excellence in Retail - Best Risk Management
Financial

Services

Awards 2012
5th Loyalty Summit Customer and Brand Loyalty
award
Skoch

foundation SHG/JLG linkage programme

2012
ICAI Awards 2011

Excellence in Financial Reporting
2011

Outlook

Money - Best Bank - Runner Up

Best Bank Award
2011
Best

Commercial - Driving Positive Change

Vehicle Financier
Businessworld Best - Best Bank
Bank award
BCI Continuity & - Most Effective Recovery of the Year
Resilience Award
Financial

Express - Best in Strength and Soundness
51

Best Bank Survey - 2nd Best in the Private Sector
2010-11
CNBC TV18's Best - Best Bank
Bank & Financial - Mr. Aditya Puri, Outstanding Finance
Institution Awards

Professional

Dun & Bradstreet Best Private Sector Bank - SME Financing
Banking

Awards

2011
ISACA 2011 award Best practices in IT Governance and IT Security
for IT Governance
IBA

Productivity New Channel Adopter (Private Sector)

Excellence Awards
2011
DSCI

(Data Security in Bank

Security Council of
India)

Excellence

Awards 2011
Euromoney Awards Best Bank in India
for Excellence 2011
FINANCE
Country

ASIA - BEST BANK
Awards - BEST CASH MANAGEMENT BANK

2011: India

- BEST TRADE FINANCE BANK

Asian Banker

Strongest Bank in Asia Pacific

BloombergUTV's

Best Bank

Financial
Leadership Awards

52

2011
IBA

Banking Winner -

Technology Awards 1) Technology Bank of the Year
2010

2) Best Online Bank
3) Best Customer Initiative
4) Best Use of Business Intelligence
5) Best Risk Management System
Runners Up Best Financial Inclusion

IDC FIIA Awards Excellence in Customer Experience
2011

53

2010
Outlook

Money Best Bank

2010 Awards
Businessworld Best Best Bank (Large)
Bank Awards 2010
Teacher's

Mr. Aditya Puri

Achievement
Awards

2010

(Business)
The

Banker

and Best Private Bank in India

PWM 2010 Global
Private

Banking

Awards
Economic

Times Business Leader of the Year - Mr. Aditya Puri

Awards

for

Corporate
Excellence 2010
Forbes Asia
NDTV

Fab 50 Companies - 5th year in a row

Business Best Private Sector Bank

Leadership Awards
2010
The

Banker World's Top 1000 Banks

Magazine
MIS

Asia

Excellence

IT BEST BOTTOM-LINE I.T. Category
Award

2010
Dun & Bradstreet

54

Awards  Overall Best Bank

Banking
2010

 Best Private Sector Bank
 Best Private Sector Bank in SME Financing

Institutional
Investor

HDFC Bank MD, Mr. Aditya Puri among "Asian Captains of

Magazine Finance 2010"

Poll
IDRBT Technology Winner - 1) IT Infrastructure 2) Use of IT within the Bank
2009 Awards
ACI

Runners-up - IT Governance (Large Banks)

Excellence Highly Commended - Asia Pacific HDFC Bank

Awards 2010
FE-EVI

Green Best performer in the Banking category

Business Leadership
Award
Celent's

2010 Model Bank Award

Banking Innovation
Award
Avaya

Global Customer Responsiveness Award - Banking & Financial

Connect 2010
Forbes

Services category

Top 2000 Our Bank at 632nd position and among 130 Global High

Companies

Performers

Financial Express Ernst

&

Young

Survey 2009-10

 Best New Private Sector Bank
 Best in Growth
 Best in strength

55

Asian

Banker

Excellence Awards
2010

 Best Retail Bank in India
 Excellence in Automobile Lending
 Best M&A Integration
 Technology Implementation

The Asset Triple A Best Cash Management Bank in India
Awards
Euromoney Private 1) Best Local Bank in India (second year in a row)
Banking and Wealth Private Banking Services overall (moved up from No. 2 last
Management

Poll year)

2010
Financial

Insights Innovation in Branch Operations - Server Consolidation

Innovation Awards Project
2010
Global

Finance Best Trade Finance Provider in India for 2010

Award
2

Banking 1) Best Risk Management Initiative and 2) Best Use of Business

Technology Awards Intelligence.
2009
SPJIMR Marketing 2nd Prize
Impact

Awards

(SMIA) 2010
Business
Best

Today Listed in top 10 Best Employers in the country
Employer

Survey

56

We are aware that all these awards are mere milestones in the continuing,
never-ending journey of providing excellent service to our customers. We are
confident, however, that with your feedback and support, we will be able to
maintain and improve our services.

TERMS AND CONDITIONS OF HDFC BANK:
1. General - applicable to all services
2. Savings accounts
3. Current accounts
4. Fixed deposits.
5. Supersaver accounts / facility
6. Sweep in instructions
7. Recurring deposits
8. Atm usable cards
9. Arhtia card
10. Phone banking
11. Bill pay facility
12. Instant alert
13. Net banking
14. Visa card, and international debit card
15. email statements
16. Investment services account
17. Doorstep banking services, add-on card on mobile, forex plus platinum
card, forex plus card terms
COMPETITORS INFORMATION:
We face strong competition in all of our principal lines of business. Our
primary competitors are large public sector banks, other private sector banks,
foreign banks and, in some product areas, non-banking financial institutions.
Our competitors are ICICI BANK, Axis Bank, Kotak Mahindra bank ect.

57

SWOT ANALYSIS
The training at The HDFC Bank was a great learning experience and certainly
enables me for the systematic evaluation of the Strength, Weakness,
Opportunities, and Threats of the bank.
 STRENGTHS :
 Right strategy for the right products
 Superior customer services vs. competitors..
 Products have required accreditation.
 WEAKNESSES :
 Some gaps in range for certain sectors .
 Management cover insufficient
 Sectoral growth is constrained by low unemployment levels and
competition for staff
 OPPURTUNITIES :
 The Profit Margin Will Good.
 Could extend to overseas broadly.
 Fast-track career development opportunities on an industry-wide
basis
 THREATS :
 Very high competition prevailing in the industry.
 Lack of infrastructure in rural areas could constrain investment.

ANALYSIS OF FINANCIAL STATEMENT
BALANCE SHEET OF THE HDFC BANK., AS ON 2011
Particulars
Total share capital

LIABILITIES
28,71,12,907

ASSETS
-

Total Reserves & other funds

54,26,10,058.56

58

Total Deposits

597,62,10,335.29

-

Total Suspense accounts

30,27,360.65

-

Total Interest payable on deposits

4,51,09,375

-

Total other Liabilities

21,66,40,367.87

-

Total of branch accounts

227,31,69,875.70

15,64,48,629.54

Net profit: cash on hand & balance

-

3,35,90,290

Total cash at bank

17,50,07,942.68

Total Investments

-

229,13,05,825.19

Total Loans & advances

-

444,12,12,211.50

Total other Assets

-

17,18,64,797.84

Total branch accounts[group-270]

15,57,87,650.54

227,30,16,187.70

Total of furniture & fixtures

-

1,28,68,259.12

Total building cost

-

2,01,72,212.30

Total vehicle cost

-

6,48,328.80

Total Computer cost

-

20,81,688.05

Grand Total

949,96.67,930.61

957,92,34,219.17

Profit for the current year up to 7,95,66.288.56

-

31/03/2011
Net Income

957,92,34,219.17

957,92,34,219.17

59

CHAPTER-4
 CONCEPTUAL FRAME WORK

CONCEPTUAL FRAMEWORK ON TOPIC
HUMAN RESOURCE MANAGEMENT OF HDFC BANK:1. MODE OF APPOINTMENT:
The appointment to various points shall be made in the following manner:BY DIRECT RECRUITMENT:60

a. The qualifications for direct recruitment shall be such as specified in
the staffing pattern.
b. The appointment shall be made according to the merit list drawn at the
time of selection.
c. All appointments except to class-IV services shall be made on the
recommendations of the selection Committee consisting of the
following:BY PROMOTION
a. Appointment by promotion to the next higher post in the respective
discipline in any category shall be made on the basis of ‘Senioritycum-Merit’ from amongst the employees working in the lower
category having at least five years service on the said post in the steel
Industry.
BY TRANSFER:
a. By transfer of a person on deputation from any Department of
Government/ HDFC BANK or any sister Concern Company.
b. By permanent transfer of services of surplus staff of HDFC BANK the
terms & conditions as Prescribed by HDFC BANK and adopted by the
Board from time to time subject to the approval of Register.
c. By permanent transfer of an employee of other /HDFC BANK on his
own request and upon the terms & conditions as prescribed by the
HDFC BANK and adopted by the board from time to time subject to
the approval of Registrar.
2. COMMENCEMENT OF SERVICE:
Services shall be deemed to have commenced from the working day on which
the employee reports for duty. If he reports for the duty in the afternoon’ the
services shall be deemed to have commenced from the following day.

61

3. ATTENDANCE AND LATE COMING:No employee shall enter or leave the premises of the Establishment accept by
the gate or gates meant for this purpose.
An employee who is off his duty or has resigned or has been discharged or
declared by the competent Medical Authority to be suffering from any
contagious or infectious disease, shall immediately leave the premises of the
Established and shall not enter any part of it, except with the express
permission of the competent authority.
All employees shall be liable to be searched both at the time of entry and exit
at the main entrance of the Establishment by an authorized person of the same
sex with due dignity.
If more than one shift is working, the employee shall be liable to be
transferred from one shift to another.
4. SENIORITY:
a. The seniority of an employee under these rules shall be determined in a
particular category of post on the basis of the length of service on that
post provided that in the case of employees appointment by the direct
recruitment which join within the period specified in the order of
appointment or within such period specified by direct recruitment who
join with in the period specified in the order of appointment or within
such period as may from time to time be extended by the appointing
authority, subject to a maximum of one month from the data of order
of appointment, the order of merit determined, shall not be disturbed.
Provided further that in the case a candidate is permitted to join the
service after the expiry of the said period of one month, his seniority
shall be determined from the data he joins the service.
b. Seniority of the employees of HDFC BANK upon the permanent
transfer of

their services to the HDFC BANK vis-à-vis other
62

employees of HDFC BANK, shall be determined in the following
manner:1. An employee who was working in the higher pay scale at the
time of permanent transfer shall rank senior to the employee
working in the lower pay scale on that date.
5. POSTING AND TRANSFERES:
Managing Director shall be competent to post/ transfer any employee within
the establishment. He shall also be competent to transfer an employee against
any equivalent post or along with post.
As and when considered necessary in the internet of work and upon request
from HDFC BANK the services of an employee of BANKING INDUSTRY
may be placed on national deputation without payment of deputation
allowance to any other BANKING COMPANY/ HDFC BANK for Period up
to one year in the first instance, which can be extended further.
6. DEPUTATION
Any employee of BANKING INDUSTRY is sent on deputation to any State
level co-operative Apex. Institution or Government Undertaking with his
consent and

on receipt of written requisition from the concerned

Institution/Government undertaking and with the concurrence of the HDFC
BANK on the terms & conditions mutually agreed upon by the leading and
borrowing organizations subject to prior approval of the Registration

7. PROVIDENT FUNDS:
Employees of the HDFC BANK shall be entitled to the membership of the
Employees Provident Fund and other schemes under the employees Provident
Fund and Misc. Provisions Act’ 1952 irrespective of the pay drawn b him reemployed persons shall be governed by the terms of their appointment.

63

8. BONUS:
Employees of the HDFC BANK shall b entitled to payment of the Bonus
under the payment of Bonus Act, 1965 as amended or re-enacted from time to
time.
9. MEDICAL BENEFITS:
An employee, as and when covered under the PSI Act/Scheme, shall get
medical benefits as provided there in. An employee not covered under the PSI
Act/Scheme shall be entitled to medical benefits as may be decided by the
board from time to time with the concurrence of the HDFC BANK.
10. ALLOWANCE:
Dearness Allowance, Additional Dearness Allowance, House Rent Allowance,
City Compensatory Allowance, Rural Allowance and Other Compensatory
Allowance Shall be Admissible to the Employees of the Life Insurance as per
the Decision of the Board with the concurrence of the HDFC BANK and
approval of the Registrar.
11. BENEFITS ADMISSIBLE IN THE EVENT OF DEATH OF AN
EMPLOYEE DURING SERVICE:
In case of death of an employee while in the service of HDFC BANK his
family members shall be entitled to the following benefits/ facilities at the
rates/scales and on the teams & conditions as approved by the board from time
to time with the concurrence of HDFC BANK.
a. Ex-gratia grant.
b. House Rent Allowance.
c. Encashment of P. leaves.
d. Priority for employment of window/dependent of deceased
employee.
e. Special Ex-gratia grant to the family members of an
employee of the HDFC BANK Killed by terrorist action.
12. TRAINING:
64

Managing Director may wit the concurrence of HDFC BANK to attend a
seminar/ workshop/training within the country or abroad in accordance with
the instructions of the Registrar, as may be issued from time to time.
13. LEAVE:
All the employees of HDFC BANK shall be entitled to the following kinds of
leave: PRVILEGE LEAVE (LEAVE WITH WAGES:
One day for every 18 days of service (for the purpose of calculation of days of
services, the period of Privilege Leave availed and leave without wages/
absence shall not be counted).
 CASUAL LEAVE:
12 days per annum.
 SICK LEAVE:
14 days per annum to those employees ho are not covered by the ESI
ct/Schemes.
7 days per annum to these employees who are covered by the ESI Act/Scheme.
14. RESIGNATION:
If a regular/permanent employee intends to leave the service of the HDFC
BANK by tendering resignation, he shall have to give one month’s notice in
writing, otherwise, he shall have to deposit on e month’s notice in writing,
otherwise, he shall have to deposit one month’s salary or salary for the period
by which the notice falls short of one month (for this purpose salary will
include basic pay +all other allowance admissible thereon, experts House
Rent/Rural allowance, Conveyance Allowance and Medical Allowance.)24
hours notice shall be required for tendering resignation during probation
period.

65

The resignation tendered by the employee may be accepted by the appointing
authority.
15. SUPERANNUATION / RETIREMENT
Every employee of HDFC BANK shall be superannuated on the afternoon of
the last day of the month in which he attains the age of 58 years.
Not with standing anything contained in Rule 17.1 above, an employee may be
permitted at his own request to retire room the service of the HDFC BANK on
attaining the age of 50 years or after 20 years of service at any time by the
appointing authority provided three months notice.
A thing contained in rule 17.1 and 17.2 above, the appointing authority shall,
if it is of the opinion after reviewing the entire service record of an employee
that he is not fit to be retained in the service and that it is in the interest of the
Life Insurance.
16. Major misconducts:
Without prejudice to the generality of the term, “misconduct”, the following
acts of communion or omission shall, interlaid, constitute specific acts of
Major Misconduct on the part of the employee:
1. Breach or habitual breach of any standing instructions or rules
regulations, conditions of the appointment letter or orders issued by
the establishment from time to time.
2. Acting in any manner prejudicial to the inertest or reputation of the
establishment, disregard of any operation & maintenance.
3. Negligence or habitual negligence of duty or laziness or in
efficiency or incompetence or malingering or neglect of work or
carelessness in work, poor or unsatisfactory performance
intentionally. bring narcotic, liquor or other intoxicating things in
premises or reporting.

66

4. Doing private or personal work during working hours, engaging in
any other trade, business profession, service of the Establishment
without while in the competent authority.
17. PUNISHMENTS FOR MAJOR MISCONDUCTS:
One or more of the following punishments may be imposed on an employee
who is found guilty of a major misconduct, namely:1. Stoppage of one or more annual grade increments of pay with or
without cumulative effect
2. Recovery of damages or the amount of loss suffered by the
Establishment on account of misconduct of the employee.
3. Demotion to the Lower post.
4. Termination of service.
5. Dismissal from service.
18. PUNISHMENTS FOR MINOR MISCONDUCTS:One or more of the following punishments may be imposed on an employee
who is found guilty or minor misconduct, namely:1. Warning or Censure.
2. Making an adverse entry in his service record.
3. Stoppage of one annual grade increment of pay with or without
cumulative effect for a period of six months.
4. Recovery of loss of goods expressly entrusted to the employee or
more for which he is accountable.
5. Recovery from his pay of the he is accountable, pecuniary loss
caused by him to the establishment by negligence or breach of
orders.
6. Suspension without pay or subsistence for a period not exceeding
15 days.

67

19. PROCEDURE FOR AWRDING PUNISHMENT FOR ACTS OF
MINOR MISCONDUTS:
Where an allegation of minor misconduct is alleged against an
employee, he shall be called upon to explain his position.
20. PROCEDURE OF ENQUIRY AND PUNISHMENT FOR MAJOR
MISCONDUCTS.
An employee against whom a major misconduct is alleged shall be
served with a charge Sheet by the competent authority clearly setting forth the
imputation of mis conduct and calling upon the employee to submit his
explanation within a period of 7 days, provided that such time may be
extended for a maximum period of 7 days , after the expiry of initial period of
7 days if sufficient reasons are advised by the employee for seeking an
extension, for which purpose a written request will have to be made him.

In case where the employee admits in writing the charge(s) leveled against
him, it shall be open to the competent authority to award one or more of the
punishments provided in these rules without holding any enquiry.
In the case of the explanation submitted by the employee is found to be
satisfactory, the matter will be dropped.
In case the employee fails to submit his explanation within the prescribed time
or extended time allowed to him or where the extended time allowed to him or
where the explanation submitted by him is not found satisfactory, the
competent authority shall appoint a person to hold an enquiry and issue
ordered in this regards specifying there in the names of the Enquiry officers
and the Presenting officers.
The accused employee shall be entitled to the reimbursement of actual
rail/bus fare only besides conveys undertaken by him for inspection of
relevant records and attending the enquiry proceedings at a station other than
his HQs.
68

The enquiry officer shall on the conclusion of the enquiry, submit his report in
writing giving his findings with the reasons therefore to the authority.

APPEAL AGAINST PUNISHMENT:
 An appeal against the orders of the competent authority imposing
punishment, under rules 29 and 30 of these riles shall lie to the board
of directors of the HDFC BANK. The board shall constitute a
committee consisting of chairman, nominee of HDFC BANK, nominee
of RCs and nominee of NDDB to examine the appeal on the basis of
records.
 An appeal shall be filled within a period of 30 days from the data on
which the appellant receives a copy of the order appealed against or is
deemed to have received.
 The appellate authority may after consideration of the case and on
recording sufficient reasons yet aside, reduce, confirm or enhance the
punishment and its decides to enhance the punishment, the accused
employee shall be given an opportunity to show cause against such
enhancement.
21. SUSPENSION:
In a case where it is considered that the employee be suspended pending
enquiry, the competent authority may suspend the employee pending issues of
a charge sheet or subsequent domestic enquiry or till the final orders are
passed on the enquiry case. Where criminal proceeding against an employee in
respect of any offence involving moral turpitude is pending and the competent
authority is satisfied that it is necessary/desirable to place the employee under
suspension, the competent.
SUBSISTENCE ALLOWANCE DURING SUSPENSION:

69

o An employee shall be paid during the period of suspension subsistence
Allowance @ 50 % of the wages to which the employee was entitled
to immediately preceding the date of such suspension for the first 90
days of suspension and 75% of such wages for the remaining period of
suspension.
o The payment of subsistence Allowance to the suspended employee
shall be subject to his processing a certificate every month about his
having not taken up any other employment and his having remained at
the head quarters.
22. SERVICE RECORDS:
The following service reords shall be maintained in respect of an employee of
HDFC BANK
i)

personal File

ii)

service book

iii)

A.C.R file.

RESIDENTIAL ADDRESS OF EMPLOYE
An employee shall notify to the HDFC BANK immediately on engagement,
like details of his residential addresses and thereafter promptly communicate
to the HDFC BANK any change in his residential address.
ANNUAL CONFIDENTIAL REPORTS:
ACRS of employees shall be written on yearly basis (April to march) in the
prescribed format. The entries in the A.C.R of an employee sall be taken into
account while deciding the case of promotion, Proficiency step up, pre-mature
increment(s) etc. The adverse remarks in the ACR of an employee, if any ,hall
be communicated to him in writing. The employee to whom adverse remarks
are conveyed may make a representation for review of the adverse remarks. In
this regards the following time schedule shall be followed:-

70

1

Period of communication of adverse Within 30 days of the receipt from
remarks to the official concerned

the final accepting authority.

2. Period for receipt of representation Within thirty days from the date of
against adverse remark.

receipt of adverse remarks.

3. Final decision on the representation Within 30 days of the receipt of
on

receipt

of

comments

of comments on the representation from

reporting / reviewing/ accepting the reporting/ reviewing/ accepting
authority

authority.

NOTE –I No further representation shall lie against the final decision.
NOTE-II The representation against adverse remarks received after the expiry
of the stipulated period shall be rejected straight way.
23. GRIEVANCE /REDRESSAL PROCEDURE:
Any employee having a cause for complaint about his work or working
conditions shall have a right to present a cause for investigation and
consideration within two days of rising of the cause. The procedure for the
redress shall be as follows:Stage –I
The employee having a cause for complaint shall in the first place, discuss it
with his immediate supervisor.
Stage –II
If a satisfactory solution of his problem is not bound with six days his
discussion of the complaint, he shall approach his sectional head/ departmental
head through his immediate supervisor.
Stage-III
If the problem is not yet resolved, the aggrieved employee may request for the
consideration of his cause by the Grievance community constituted as under
with an intimation to the Labor-cum conciliation officers of the areas.
71

72

CHAPTER NO. 5
SURVEY








DATA COLLECTION
FOCUS GROUP
SAMPLING METHODS
SAMPLE SIZE
TOOLS USED
ANALYSIS AND
INTERPRETATION

SURVEY
Objectives of the Survey: The survey is intended to study the state of HR
practices and the upcoming priorities of HR in India with a view to Create a
baseline of current practices Provide directional guidance to the trends shaping
the HR function
Scope of the Survey:
Organization

Vision,

HR systems, processes and practices around
Mission

&

Values,

Recruitment,

Performance

Management, Training & Development, Career Development, Compensation
& Benefits, Rewards & Recognition etc were studied . The survey coverage
73

extended to Organizations with varying employee strength, turnover and
industry sectors Page 4 ‘HR’s Next Agenda’ Ernst & Young - NHRD HR
Practices Survey, 2012
About the survey : 10 Organizations across 4 Industry Sectors responded to
the survey Industry Sectors Respondents Industry Sectors Respondents
Automotive, IT/ITes, Banking/ Financial Services, Media and Entertainment,
Insurance Professional
Our Approach: The survey was carried out in the following phases:
Administration Design Phase Analysis Phase. A stratified sampling
methodology was adopted to identify participating organizations across 15
industries on the basis of type of industry, size and turnover of organizations.
A focused online questionnaire was developed to capture responses across
various fields of HR. The responses received to date were then collated and
analyzed on the basis of the Survey Framework. Data obtained was also
supplemented by qualitative insights from select senior HR professionals who
were interviewed Page 7 ‘HR’s Next Agenda’ Ernst & Young - NHRD HR
Practices Survey, 2012
HR Strategy and Processes: HR has a prominent seat at the table and is
extensively involved in the strategic business planning process (90 % ) Large
organizations believe that HR adds critical value to the achievement of
business results (100%) Line manager’s involvement in HR strategy and
implementation is high and will continue to increase (80 %) Limited focus on
increasing effectiveness of HR processes (40%) HR’s next agenda: Partner
with business to reduce cost and improve efficiency Increasing accountability
of HR with 65% of the organizations planning to introduce effective measures
of performance for HR Page 9 ‘HR’s Next Agenda’ Ernst & Young - NHRD
HR Practices Survey, 2012
Compensation and Benefits: Increments unlikely to be beyond 8 -10% in
the coming year Performance linked pay taking significant precedence
impacting even junior levels (from 5% of CTC in 2002 to 12-15% currently)

74

Talent Acquisition & Employer Branding: - Internal recruitment preferred
to external recruitment. Positive corporate reputation biggest draw for hiring
suitable talent (100%). Well defined Employee Value Proposition highly corelated with organization size (especially for those with employee strength
exceeding 100
Talent Acquisition & Employer Branding :- The real challenge is how to
attract specialized talent, together with building solid employee engagement.
Performance Management and Measurement:- Individual goals not well
aligned to business goals (70%). Communication of performance feedback and
ratings to employees are areas of improvement (70%). Normalization of
Ratings – important practice for rationalizing ratings and maintaining costs
(80%). PMS Linkages to bonus highest in Financial Services; to training
highest in Consumer goods; to career management highest in IT/ITES HR’s
next agenda: • Increased used of the Balanced Scorecard. Development of
Reviewer coaching skills for providing relevant feedback and impartial ratings
Performance Management and Measurement: - Performance is an equally
important part of the equation. Pay for performance can work only if both ends
receive equal attention.
Training and Development: -

No budget cuts expected in Training and

Development Activities over the next 1 year, time spent on training to increase
(78%). Well defined training policy and training needs identification at all
levels (70 %). Competency based needs identification and development still an
area of gap ( 52 %). Organizations unable to determine ROI on Development
spend, employees unclear on what skills they are expected to
Leadership Development:- Only a third of identified future leaders satisfied
with organizational support for their development. In larger organizations,
leadership identified as a core competency. Smaller organizations introducing
measures to strengthen their succession planning process
Organization Culture: - Information flow takes place in all directions in
most organizations (60%). Larger the organization, greater is the emphasis on
75

communication and feedback mechanisms.

Involvement of employees in

decision making low (75%). Confidence and trust in subordinates is an issue
(60%).

76

COLLECTION OF DATA:The task of data collection begins after a research problem has been defined
and research design/plan chalked out. The collection of data is done to
support tour findings and interest the result whether the result you have
found in according to your hypothesis or not. The data can be collected by
various methods. These are broadly classified into two ways, as follows:


PRIMARY DATA



SECONDARY DATA

PRIMARY DATA:The primary data are those which are collected a fresh and for the first time
and thus happen to be original in character. We collect primary data during the
course of doing experiments in an experimental research. It is the first hand
data and nobody else has collected this before. There are various ways of
collecting primary data, these are as follows:
1). Observation method
2). Interview method
3). Questionnaires
4). Other methods

SECONDARY DATA:

1. From Internet
2. Magazines and News Papers
3. Government Publications

77

FOCUS GROUP
The following HR Practices are highlighted in this project.
1. The main focus in this project is given on the recruitment and selection
process of the company. If the company is select the right candidate for
the right person then the company has not to spend the money on the
recruitment process, if the company can select the right candidate, the
candidate can easily spend latest 5-7 years with the organisation.
2. Second main focus is given in this project report is working hours and
working environment of the company. The company working
conditions is suitable for all employees or not, and environment is
good for female employees or not.
3. Whether the employees are satisfied with the health, safety, welfare
facility provided by the company or not.
4. Whether the company increment process and promotion process is
liked by the employees or not.
5. Training policy of the company is good for employee learning or not.

And there are so many other thinks which is not taken in this project due to
time shortage and difficulty in collection of the data.

SAMPLING METHODS
SAMPLE SIZE
78

Population Size :
Sample Size

Employee of HDFC BANK on DELHI Branches.

:

100 Employees of HDFC BANK on DELHI

Branches.
Sampling Method:

Sampling was done on the basis of Random sampling.

TOOLS USED
MOTIVATIONAL TOOLS
Motivating for work is inseparable to continue productivity. But work when
itself serves as motivation then progress is inevitable. The organization must
take great care to motivate its employees through various methods.
 Promotion may be one of the best motivational factors. Promotional
basis could be
o work performance
o qualification
o performance evaluation
o skill enhancements
o Initiative steps taken.
 organization may also provide fringe benefits such as
o leave traveling allowance
o medical
o free transportation
o ESI (Employee State Insurance)
o Furnishing scheme
o House lease
o hospitalization

WELFARE ACTIVITIES
79

The organization may adopt welfare policies such as
o Transportation facility
o Canteen facility with breakfast, lunch and dinner facility along
with refreshments.
o Canteen could be free, subsidized ,paid. But the most preferred
one is through subsidized mode.
o The organization must also possess first aid facilities for its
staff. A well-versed rehabilitation of injured staff and an on
duty doctor or an ambulance should be always provided.
o The organization must also possess a grievance handling
committee despite a union to take an action for their problems.
It could be a three tier of four-tier grievance committee.

80

DATA ANALYSIS AND INTERPRETATION
Data Analysis and interpretation is conducted on 100 employees of HDFC
BANK.
1. How long you are working in the organization?
YEARS

WORKING IN THE PERCENTAGE

0-2 YEARS

ORGANIZATION
6

6%

2-5 YEARS

16

16%

5-10 YEARS

30

30%

MORE THAN 10 YEARS

48

48%

TOTAL

100

100%

working in the organisation
0-2 years

6%
16%

2-5 yrs
5-10 yrs

48%

>10 years
30%

Finding
From the chart that 48 employees are working for more than 10 years. Even
no. of employees working between 5-10 years are 30. This shows that most of
the employees are satisfied with their job. The attrition rate of the company is
very low. This indicates that employee are satisfied and their respondent were
interviewed and it was found that employee to know while they are continuing
in their company for more than 10 year and followed that they are overall
satisfied.
81

2. Are you comfortable with the working environment?
WORK

ON NUMBER

OF PERCENTAGE

ENVIRONMENT
GOOD

RESPONDENT
50

50%

SATISFIED

40

40%

BAD

10

10%

TOTAL

100

100%

number of respondent
60
50
40
number of respondent
30
50
20

40

10
10
0
good

satisfied

bad

Finding
50% of employee express as a good environment remain. From the remaining
50% about 40% says a satisfactory job environment only about 10% feels bad
working environment is there. There are not satisfied with the way they are
given the work. They feel there is the bias is there.

82

3. What are the various sources of recruitment in your organization?
OPTION

SOURCE

PERCENTAGE

INTERNAL

26

26%

EXTERNAL

16

16%

BOTH

58

58%

TOTAL

100

100%

source

26%

internal
external
both

58%
16%

Finding
About 58% of recruitment through both internal and external source and 26%
of recruitment through internal source and 16% of recruitment through
external source.

83

4.

Whether the employees are satisfied with the health, safety, welfare
facilities provided by the Company?

OPTION

NO OF RESPONDENT

PERCENTAGE

SATISFIED

76

76%

DISSATISFIED

24

24%

TOTAL

100

100%

No.of respondent
80
70
60
50

no of respondent

40
30
20
10
0
satisfied

dissatisfied

Finding
It shows that 76% are satisfied and 24% give a negative reply. After
further interviewing the respondent that there has to be the further
health check-up like cancer and other test health policy.

5. Are you satisfied with recruitment process of your company?

84

OPTION

NO OF RESPONDENT

PERCENTAGE

YES

65

65%

NO

35

35%

TOTAL

100

100%

No.of respondent

yes

35%

no
65%

Finding
About 65% of employee are satisfied with recruitment process in the company
because as per their vacancy in the organization the manager check the C.V. of
that candidate whatever they want from the candidate is to be there or not and
then personal and technical interview and 35% are satisfied recruitment
process as the candidate may have competence but it is not mention in the CV
and may not have preferred well were rejected.

6. Are you satisfied with your organization salary increment policy?
85

H0: The organization salary increment policy is not effective.
H1: The organization salary increment policy is effective.
OPTION

NO.OF RESPONDENT

PERCENTAGE

YES

47

47%

NO

23

23%

CAN'T SAY

30

30%

TOTAL

100

100%

no.of respondent

30%

yes
47%

no
can't say

23%

Finding
About 47% of employee are satisfied the organization salary increment policy
because most of the employee in the organization consider that the salary
increment policy is good, 23% of employee are not satisfied the organization
salary increment policy because most of the employee is not agree what
increment they had given is not up to the mark as per their profession and 30%
of employee can’t say anything because they want to do the work what salary
organization provide to the employee they are happy. So alternative hypothesis
is accepted.
7. Are you satisfied training procedure given in the organization?\
86

H0: THE TRAINING PROCEDURE IS NOT EFFECTIVE
H1: THE TRAINING PROCEDURE IS EFFECTIVE
OPTION

NO.OF RESPONDENT

PERCENTAGE

YES

68

68%

NO

32

32%

TOTAL

100

100%

no.of respondent
70
60
50

no.of respondent

40
30
20
10
0
yes

no

Finding
About 68% of employee are satisfied training procedure given in the
organization because the trainee should understand each and every thing what
trainer should teach in the organization is about the internal training as well as
external training and 32% of employee are not satisfied training procedure
given in the organization because the training provided to the trainees which is
not as per the aptitude and attitude, proficiency level of an employee. So
alternative hypothesis is accepted
8. Are you getting regular training in your company?
87

H0: THE REGULAR TRAINING IS NOT EFFECTIVE
H1: THE REGULAR TRAINING IS EFFECTIVE
OPTION

NO. OF RESPONDENT

PERCENTAGE

YES

62

62%

NO

38

38%

TOTAL

100

100%

no.of respondent

yes

38%

no
62%

Finding:
About 62% of employee says ‘yes’ should get the regular training in the
organization because on these training trainee should understand each and
every thing what trainer should teach in the organization and 38% of employee
says ‘no’ shouldn’t get the regular training in the organization because training
is provided once in the career and if they don’t perform they are terminated
from a job. So alternative hypothesis is accepted.

88

9. Does the present performance appraisal meet your career
advancement?
H0: The present performance of an employee is not being appraised
through career advancement.
H1: The present performance of an employee is being appraised
through career advancement.
OPTION

NO.OF RESPONDENT

PERCENTAGE

YES

67

67%

NO

6

6%

CAN'T SAY

27

27%

TOTAL

100

100%

no.of respondent

yes

27%

no
6%

67%

can't say

Finding
About 67% of employee says ‘yes’, 6% of employee says ‘no’ and 27% of
employee says can’t say. So that present performance appraisal is used in the
organization for charting their career planning and so alternative hypothesis is
accepted.
10. Are you satisfied with promotion activities in the organization?
89

H0: The promotion activities are not satisfied in the organization.
H1: The promotion activities are satisfied in the organization.
OPTION

NO.OF RESPONDENT

PERCENTAGE

YES

76.64

76.64%

NO

23.36

23.36%

TOTAL

100

100%

no.of respondent

23%

yes
no

77%

Finding:
About 76.64% of employees are satisfied with the promotion activities in the
organization because the ranking method is used in the organization for the
promotion activities and 23.36% of employees are not satisfied with the
promotion activities in the organization. According to that ranking method is
90

used for appraising the performance and there is no individual initiated which
can focus on development. So alternative hypothesis is accepted.

CHAPTER-6
 FINDINGS
 SUGGESTIONS AND CONCLUSION

91

FINDINGS OF STUDY:
The findings during the work carried out by me can be categorized into two
categories as it is said that every coin has two sides:A) Positive findings:1. A majority of employees feel that recruitment process carried out in the
company is satisfactory. Management is also satisfied with the process of
recruitment to some extent.
2. In HDFC BANK most of the employees feels that the HR department is
good. About 58% of the managers say that they prefer both internal as well as
external source for recruitment and selection.
3. Almost all the employees are satisfied with the training activities conducted
in the organisation. 68% of the employees have achieved their training
objectives.
4. Superiors are very supportive and helps their sub-ordinates in achieving
their objectives
5. The management has understood the importance of systematic appraisal
system & they are taking every effort to implement it properly.
6. The training programme arranged for performance appraisal is good. The
trainer is also very effective to make the employees understand the concept.
7. The performance appraisal training programme is appreciated by the
employees & they are really benefited by it.
B) Negative findings:1. Some employees were moderately or not much satisfied with the process of
recruitment.

92

2. Since rules and regulations are very dynamic, so most of the employees face
difficulty to adjust with them.
3. Most of the candidates do not turn up when they are called up for the
interview.
4. Regional behaviour and language influence is higher during training and
even after delivering their language; the desired effects are not seen.
6. Most of the employees slowly understand the importance of performance
appraisal.
C) Special Findings: Since the process involves continuous sitting at one place so refreshment was
provided to the candidates who had come for the interview. This being as
unique exp experience by candidates it helps to build the goodwill of the
company.

93

SUGGESTIONS
As in the competitive world where the need for every organization to prove
itself the best and make an outstanding and remarkable progress is the need,
no fact could be left ignored. Every organization must know the shortcomings
and must try to go for building up the shortcomings. An ethical practice in any
organization could only be achieved if the organization works for the well
being of its employees. Every organization must possess a basic structure and
the organization must be capable enough to reward its outstanding performers
and must appreciate the initiative works.
According to the survey been conducted with various HR heads of various
organizations here are few suggestions from their side:
INDUCTION PRACTICES
Induction is must in every organization for all level of employees to make
them well known of the industry they are working in.
 The best ways to perform induction may be through
o Lectures
o Power point presentations prepared explaining company’s
policies.
o Through SOPs (Standard operating procedures)
o Manuals
o Diaries
o But the most adopted one is through personal induction.
 The induction program must follow a proper feedback from employees
been put into the program which is again an ethical practice and is
achieved by
94

o induction scheduling
o opinions from supervisors
o feedback forms.

95

BEHAVIORAL TRAINING
 Behavioral training is boon for any organization.
 The organization could provide on the job training, which is quite
common and most adopted. The organization may also go for outdoor
training
 Job rotation could be preferred which could make the employee skilled
in overall working of an organization.
 The organization may provide a basic training for FIRST AID &
SAFETY OR FIRE SAFETY TRAINING.
 The organization may have tie ups with the training organizations
which could organize courses and the organization may take up the
best course as per requirements of their staff.
 A proper feedback must be taken to grasp the extent the employees
have versed themselves with knowledge.
 Proper Feed-back could be taken through
o evaluation
o questionnaire
o feedback forms
o submission of report through trainee
o feed back through trainers

96

RECOMMENDATIONS


For all the programs the organization must follow feedback method to
understand the effectiveness of any practice in a better way.



Holistic views of induction should out show both positive and negative
aspects of the organization. This ultimately let the employee know about
both the phases of the policies adopted by the organization.



Practice of providing a brief presentation of the company and a booklet for
rules and regulations of company must be maintained so that the employee
could go through it whenever required.



Individual should concentrate more while training. When an organization
invest on training of an employee, the purpose of training serves the
mutual benefit of both organization and the employee. Thus, the employee
should be more oriented towards drawing as much benefits as he can.
Employees are supposed to understand their role for particular training
program.



Company must maintain training manuals or training charts and training
report submitted by the trainee. This, practice not only keeps a maintained
record of the programs been conducted but also keep the employee known
of the knowledge gained by him which could later be utilized.



A pre- evaluation and post evaluation practice should be followed to
understand the success of training and the training could be then
effectively used to fill gaps later.



Continuous training module should be conducted, personality development
training should be provided.



To motivate the employees



Performance awards could be given every year.
97



Incentives could be paid.



Salary saving schemes could be provided.



Extra activities such as games and sports, community meetings,
recreational activities, picnics, tours and outings should be planned to
improve the interpersonal relationships.



External welfare activities could also be taken up by the organization such
as
o Blood donation camps
o Safety week
o Free eye camps
o Free books for children
o Poster and quotes competition could be organized.



Devotion, belongingness and good team member spirit should be
rewarded. Employees should be encouraged for group efforts and team
work.



To avoid worker union for better employee welfare and give suitable
welfare activities from time to time to the employees in house work
committee should be developed to handle the grievance.



Employee’s participation is key issue. Thus, suggestions should always be
invited and maximum efforts should be put up to implement the
suggestions.

98

INITIATIVE SUGGESTIONS


Employee’s family’s involvement in motivating employee is the key
element. It creates a special pressure point.
o Drawing competitions of children could be organized.
o Special training for wives could be arranged to teach them what
are the dos and doesn’t.
o Special scholarships could be announced for the children of
employees securing good marks.



Management by objective should be adopted. The practice should be
objective to avoid biasness.



Kaizen award could be given to the implementer of best suggestion.

CONCLUSION
At last I want to say that while recruitment and selection identify acceptable
candidate, the process still continue with induction program for the new
employee, we can further fine tune the fit between the candidate’s qualities
and the organization’s desire. Then to make the employees more skilled
behavioral training may be provided.
It makes the positive impact of any organization, but it needs a lot of money,
time, attention and guidance. It is just like only taking, not giving or taking the
starting benefits and when the time comes for returning back you just quit the
job. So it is not always fruitful.
The employee motivation is needed to be built up through constant attempts of
the organization. The organization may adopt various methods for motivating
the employees. It may be by providing recreational activities such as tours,
99

picnics, family outings, annual days, sport days, functions, and parties. The
organization must consider its employees as its family members and must
provide some profit sharing policy such as ESOPs , bonus, and shares. the
organization may provide fringe benefits.
Welfare activities to be undertaken by the organization may include various
facilities such as uniform for the employees for whom HR department is
responsible for its maintenance and providing it.
Last but not the least rewards are the main motivational activity, which may be
monetary and non-monetary rewards.
At last to conclude, I would like to say that with enthusiasm that it was a great
experience working with many experienced people working at senior
positions. Interacting and spending time with the people rich in learning
experience. The people were very cooperative and helpful and encouraging. It
is an experience to be cherished for a long time.
It was great of learning so much about HR practices and implementing them.
I’m really thankful for all the senior members who explain me the working
strategies and methodologies of organizations.

100

CHAPTER NO. 7
BIBLIOGRAPHY
Books
 PERSONNEL / HUMAN RESOURCE MANAGEMENT


DECENZO & ROBBINS

 HUMAN RESOURCE MANAGEMENT


GARY DESSLER

 PERSONNEL/ HUMAN RESOURCE MANAGEMENT



ROBERT L MATHIS
JOHN H. JACKSON

 HUMAN RESOURCE MANAGEMENT


DEEPAK BHATTACHARYA

Websites: http://en.wikipedia.org/wiki/Human_resource_policies
www.cityhr.com
www.google.com
www.projects99.com
www.hdfcbank.com

101

ANNEXURE
Respected sir/madam
This questionnaire is to study the “HR POLICIES IN HDFC BANK”. You
are requested to please give few minutes to fill the questionnaire and provide
us with valuable information. All the information provided by you will be
treated as confidential. We will be glad to share the summary of the survey
with you ….
Instructions
You may mark more than one options if relevant.
You are free to put your remarks in every blank provided.
1) Name of the
company_______________________________________
2) Complete
address__________________________________________
3) Name of HR
head__________________________________________
4) E-mail
address___________________________________________
__
5) Telephone
no.______________________________________________
6) Work force of the
company____________________________________
7) Turnover
rate______________________________________________
_
8) does your organization have other manufacturing units in
India
(Yes / No)
9) if Yes, how many permanent employees do u have in each
102

(1)_________________
(2)_________________(3)_____________
INDUCTION PROGRAM
1) Does the company provide induction for new employees
(yes/no)
2) What are ways of induction
o Diaries
o Manuals
o Brochures
o Company cd’s
o Any other, please
specify________________________________

3) who participates in delivering the function?
o HRdepartment
o Related department
o All departments
o Any, other please
specify_______________________________
4) Does induction is
o Same for all
o Different for different levels
5)

Induction related to which areas are
provided____________________

6) What is the duration of induction program
`____________________
7) How does the company evaluates the effectiveness of
induction program being conducted
o Feedback method
o 0pinion from supervisor
103

o Employee satisfaction surveys
o Performance evaluation
o Any other, please specify__________________
8) Do the organization follow any induction
scheduling______________?
9) Any other best induction practices you would like to share
__________
___________________________________________________
______
BEHAVIORAL TRAINING
1) How does the company recognize the need for training?
o Through questionnaires
o Performance monitoring
o Reference from supervisor
o Absence in pride
o Defective quality product
o Unsatisfactory promotions
o Any others, please
specify_______________________________
___________________________________________________
______
2) What type of training is conducted?
o On the job training
o Class room sessions
o Online training
o Apprentice Training
o Outdoor training

104

o Any other please specify
______________________________

3) Who gives the training?
o Internal trainer
o External trainer
o Any other, please
specify_______________________________
4) what is the percentage of employee involved in
training_________
5) what is the annual budget for
training______________________
6) what is the module duration of
training_________________________
7) How do you take feedback of training
program__________________
___________________________________________________
_
8) Please provide us any other information to help us
understand the measurement of training
effectiveness_____________________________
9) Any best practice in training you would like to
share______________________________________________
_______

105

MOTIVATIONAL TOOLS

1) Does the company provide any recreational activities( you
can mark more than one option in case applicable)

o Picnics
o Tours
o Family outings
o None
o Any other, please specify
_____________________

2) Does the company provide any profit sharing policy

o ESOP’S
o Bonus
o Shares
o None
o If any other, please
specify___________________________

3) Does the company take up initiative for improving
interpersonal relationship

106

o Parties
o Functions
o Get together
o Community meetings
o Any other, please specify

4) does the company provide any retirement benefits

o Gratuity
o VRS( voluntary retirement scheme)

o PF (Provident fund)
o Pension
o Old age security
o Any other, please specify_______________
5) What are the promotional basis adopted by the organization
___________________________________________________
______
6)what are the fringe benefits provided by an
organization____________
___________________________________________________
______
7) any other motivational initiative you would like to share with
us_________________________________________________
______

107

WELFARE ACTIVITIES
1) Does the company provide any transportation
facilities(yes/no)
2) if yes, what type of facilities have been
provided___________
___________________________________________________
_
3)Does the company provide uniform for its employees(yes/no)
4)if yes,
o Who is responsible for providing these uniforms
o Who take care of their maintenance
5) Does the company has well establish
cafeteria/canteen(yes/no)
If yes,
6) what facilities are provided
o Lunch
o Breakfast
o Dinner
o Snacks
7) Payment Mode
o Free
o Subsidized
o Paid
108

8) Does the company has any special aid facility( you can mark
more than

one option if

applicable)
o On duty doctors
o Any collaboration with hospitals
o Ambulance for emergency
o First aid kit
o None
o Any other please
specify___________________________
______
9) Does the company adopt any on job safety measures
o Fire safety
o Electric/ shock safety
o Radiation safety (if any)
o Any harm while handling the machinery
o None
o If any other please
specify___________________________
____
10) What policy do the company has for rehabilitation of

injured

staff__________________________________________________
11) What are the grievance handling procedures of the organization ______
_____________________________________________________________
12) Any other welfare related initiative you would like to
share______________
_______________________________________________________________
____

109

THANK YOU VERY MUCH FOR YOUR SUPPORT!!!

110

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