CHAPTER 1

INTRODUCTION AND DESIGN OF THE STUDY

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 INTRODUCTION

BACKGROUND OF THE STUDY

The present study has been made as part of B.com course. In this study a
particular cooperative society was selected and studied with related to its general
working and a particular research area thereon. There by a separate topic was
selected, data`s were collected and analyzed for this research project report. Hence,
ALAKODE Service Co-operative Bank Ltd was selected as per convenience of the
research.

SCOPE OF THE STUDY

The SCBs undertake many trading activities apart from managing the banking
activities. The banking activities comprises of mobilization of share capital, collection
of deposit, issue of loans, investing in other institution and purchase of fixed assets.
Even though, SCBs are PACS, they undertake almost all the activities of a fully
fledged bank viz., collection of various deposits like savings bank deposit, current
account, fixed deposit, Recurring deposit, day deposit, group deposit scheme, etc…
from both members and non members. Similarly, SCBs lend to members in the form
of agriculture loan, gold loan, mortgage loan, surety loan, fixed deposit loan, housing
loan, education loan, vehicle loan, consumer loan, overdraft facility, etc. They also
undertake few ancillary services like issue of demand draft by tying up with Axis
bank and extending of safe deposits vaults. However, the investment options are
limited for SCBs as they are allowed to keep their deposits in DCBs and buy shares of
other cooperative societies. Therefore, there is vast scope of studying the performance
of the SCBs in Kerala. For analyzing the productivity, cost, organizational and
functional aspects the study uses various input factors viz., number of branches,
number of employees, capital employed etc., and outputs factors like deposits loans
profit etc.

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OBJECTIVES OF THE STUDY

The main objectives of the study are as follows:

 To analyze the organizational and functional aspects of ALAKODE SCB Ltd.

 To examine the performance of the Bank.
 To evaluate productivity performance of the Bank
 To study the strength and weakness of the Bank
 To understand the problems of the Bank.
 To give suggestions for improvement.

LIMITATIONS OF THE STUDY

There are some limitations to conduct a study about the society. The main limitations
are:

 Due to the busy schedule of the Bank, it is difficult to collect all the necessary
data for the study.
 The financial data collected covers for a period of five years from 2013-14 to
2017-18
 The data were collected from the society based on limited questions which
affects the major business operations.
 Limited time for data and information collected from the Bank.

CHAPTER SCHEME

CHAPTER NO NAME
1 INTRODUCTION AND DESIGN OF THE STUDY
2 REVIEW OF LITERETURE
3 INDUSTRY PROFIL
4 COMPANY PROFILE
5 ANALYSIS AND INTERPRETATION OF DATA
6 FINDINGS, CONCLUSION, SUGGESTIONS
BIBLIOGRAPHY

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 CHAPTER 2

REVIEW OF LITERETURE

4
 HUMAN RESOURCE MANAGEMENT

INTRODUCTION

An organization is a human grouping in which work is done for the

accomplishment of specific goal or mission.

According to Likert, “Every aspect of firm’s activities is determined by the

competence, motivation and general effectiveness of its human organization. Of all
the task of management, managing the human component is the central and most
important task because all depends upon how well it is done”.

According to Dessler, “Human resource management is the process of

acquiring, training, appraising and compensating employees, and attending to the
labour relations, health and safety and fairness concern”.

Human resource management is basically concerned with creating good

relationship in organization and development of people for contributing to the
organizational objectives.

Human resource management is that part of management process which

develops and manages the human element of the enterprise considering the
resourcefulness in terms of his organization. Hence, Human resource management
strategies should be designed keeping in view of the delicate nature of human
element.

SCOPE AND ACTIVITIES OF HRM

Scope:

The scope of Human Resource Management is vast. All major activities in the
working life of the employee from the time of his entry into the organization until he
leaves/retires come under the purview of Human Resource Management. The field of
Human Resource Management/Personnel Management is very wide as is obvious
from the fact that is called by several names such as “Labour Management”,
Manpower Management”, “and Human relation” and so on.

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 The Indian Institute of Personnel Management has laid down the scope of
Personnel Management as follows:

a) The welfare aspect: concerned with working condition and amenities such
as canteen, crèches, housing, personal problem of workers, schools and
recreations.
b) The labour or personnel aspect: concerned with recruitment, placement of
employee, remuneration, promotion, incentives, productivity etc.
c) The Industrial Relation aspect: concerned with trade union negotiation,
settlement of industrial disputes, joint consultation and collective
bargaining.

All these aspects are concerned with human element in the industry as distinct
from the mechanical. ‘Human Resource Management is concerned with ‘people
centric issues’ in the management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to high level of
performance and ensuring that they continue to maintain their commitments to the
organizations are essential for achieving organizational objectives. Those
organizations that are able to acquire, develop, stimulate and keep outstanding
workers, will be both effective and efficient. Survival of an organization required
managers and workers to coordinate their efforts towards goal.

Activities of Human Resource Management

Human Resource Management encompasses those activities that are designed

to provide to coordinate the human resources in the organization. Human Resource
Management is a process or activity, guiding or directing the individuals in the
organization for maximizing the personnel contribution.

In order to achieve the objectives, Human Resource management undertakes

the following activities.

1. Human Resource Manpower planning i.e. determining the number and kinds
of personnel required to fill various positions in the organization.
2. Recruitment, Selection, Placement, i.e. employment function.
3. Training and Development of employees for their improved performance
and growth.

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 4. Appraisal of performance of employees and taking corrective steps such as
transfer from one position to another.
5. Motivation of workers by providing financial incentives, promotional
avenues etc.
6. Remuneration of employees. The employees must be given sufficient wages
and fringe benefits to achieve high standard of living and motivate th em to
show higher productivity.
7. Social security and Welfare of employees.
8. Review and audit of personnel policies, procedures, and practices of the
organization.

EMPLOYMENT SATISFACTION

INTRODUCTION

Employee satisfaction represents a person’s feeling towards his job. Job

satisfaction is an integral component of organization climate and an important
element in management employee relationship. Employee satisfaction receives
attention of researchers, management and government because of its effect on
employee turnover, absenteeism, accidents, and unionization and indirectly on
productivity.

Employee satisfaction in simple word is an employee’s emotional reaction to

the job itself. It’s person’s attitude towards the job. Employee satisfaction is a positive
emotional state that occur when a person’s job sees to fulfill important job values,
providing these job values compactable with one’s need. People spend their sizeable
amount of their time in work environment. From any minimally humanitarian point of
view, they expect that portion of their lives to be more or less pleasant, agreeable,
satisfying and fulfilling.

Employee satisfaction can be important indicator of how employees feel their

jobs and a predictor of employee behavior such as organizational citizenship,
absenteeism, and turnover.

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Determinants of Employee Satisfaction:

Employee satisfaction is a complex concept and it is difficult to measure it

objectively. There are several elements that contribute towards employee satisfaction.

1. Nature of the job

Employee satisfaction is related to the aptitude of the employees. If the

employee is given a work for which he has no aptitude, the job will provide no
attraction to him. Hence the question of contribution, creativity or motivation does not
arise. It is for the management to design the job in such a manner that each worker
gets the job of his own choice.

2. Nature of supervision
The employee centered supervisory style enhances job satisfaction as the
leader looks after subordinates carefully, displays friendship, respects etc, towards
them. On the other hand, production oriented leader may cause low job satisfaction to
the employees adversely.
3. Working condition

Employee satisfaction is related to working conditions also. Working

condition that are compactable with an employee’s physical comfort and that facilitate
doing a good job contribute to the satisfaction. Temperature, humidity, ventilation,
lightening and noise hours of work, cleanliness of the work place, and adequate tools
and equipment are the features which effect employee satisfaction.

4. Rewards

Economic reward plays a significant role in influencing employee satisfaction.

This is because of two reasons. Firstly, money is an important instrument in fulfilling
one’s need, and secondly, employees often see pay as are reflection of managements
concerned for them. Employees want a wage pay system, which is simple, fair and in
line with expectations. When pay is seen fair, based on job demands, individual skill
level, and community pay standards, satisfaction is likely to result.

5. Opportunities for promotion

Promotional opportunities affect employee satisfaction considerably. The
desire for promotion is generally strong among higher level employees. As it involves

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change in job content, pay, responsibility, autonomy, status and the like. The
employee’s takes promotion as the ultimate achievement in his carrier and when it is
realized, he feels extremely satisfied.
6. Age

Individuals experience different degree of satisfaction at different stages of

their life. Satisfaction is high at the initial stage, gets gradually reduced, starts rising
up to a certain stage, and finally dips to a low degree. When an individual joins an
organization, he may have some unrealistic assumptions about what they are going to
derive from work. These assumptions make about them more satisfied. However
when these assumptions fall short of reality, satisfaction goes down. It start rising
again as the people starts to assess the job in right perspective and correct their
assumptions. At the last, particularly at the end of the career, satisfaction goes down
because of fear of retirement and future outcome.

7. Nature of group work

It is the work groups that fulfill the need for social interaction on the members.
If the worker has good relation with the fellow employees and the supervisor, he will
feel satisfied. If the work group enjoys higher status, his job satisfaction will increase
further.

These are the some of the factors that contribute towards employee
satisfaction. A worker can attain satisfaction from all these sources, which are relate
to his work.

EFFECTS OF EMPLOYEE SATISFACTION

Employee satisfaction has a variety of effects. These effects can be seen in the
context of productivity, absenteeism, and turnover etc. Employee satisfaction is an
important indicator of how employees feel about their job and predictor of work
behavior such as organizational citizenship, absenteeism, and turnover moreover
employee satisfaction can partially mediate the relationship of personality variables
and deviant work behavior.

One of the common findings is that employee satisfaction is correlated with

life satisfaction. This correlation is reciprocal, meaning people who are satisfied with

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their job tend to be satisfied with life. However some research found that employee
satisfaction is not significantly related to life satisfaction when other variables such as
non work satisfaction and core self-evaluation are taken into account.

EMPLOYEE SATISFACTION AND PRODUCTIVITY

With regard to job performance, employee personality may be more important

than employee satisfaction. The link between employee satisfaction and performance
is thought to be a spurious relationship; instead both satisfaction and performance are
the results of personality.

The relationship between satisfaction and productivity is not definitely

established. However in the long run job satisfaction leads to increased productivity.

There are some conditions under which high productivity clearly leads to
employee satisfaction. One condition is that the employee perceives that intrinsic and
extrinsic rewards are contingent upon their productivity. The second condition is that
the extrinsic reward be distributed equitably. Inequitable distribution fails to convince
the employee about close relationship between hard work and reward.

Preferably it was assumed that job satisfaction led to performance or

productivity. A well-satisfied worker will take incentives in increasing his
productivity. But later researches proved that this assumption is not correct. A
satisfied worker may be high or low or average producer.

Probably the most realistic approach under the system concept is that both job
satisfaction and productivity are correlated and influence each other. In this way these
two have circular relationship. Performance or productivity leads to rewards and
satisfaction. Which then push the men to more efforts because of high perceived
expectancy and it further leads to high performance or productivity which again leads
to satisfaction in a circular relationship. On this basis, it can be said that employee
satisfaction, can lead to productivity if effective leadership is provided.

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EMPLOYEE SATISFACTION AND ABSENTEEISM

There is a negative relationship between satisfaction and absenteeism though

the correlation is not high. It makes sense that dissatisfied employees are more likely
to abstain from work as compare to the satisfied workers. But even the satisfied
workers may abstain themselves for other reasons.

Most researches on absenteeism and job satisfaction show that the higher the
rate of absenteeism, the lower is the employee satisfaction.

EMPLOYEE SATISFACTION AND EMPLOYEE TURNOVER

High employee turnover is of considerable concern for the management

because it disrupts operation, causes morale problems for those who sticks on, and
increase the cost involved in selecting and training the replacements. The employer
must do whatever possible to minimize turnover, make the employee feel satisfied on
their job and so on.
The workers who have relatively low level of satisfaction are most likely to
quit their jobs and that the organization units with the lowest average satisfaction
level tend to have the highest turnover rate. However the withdrawal behavior of the
employees is modified by certain factors. Loyalty to the organization is one such.
Some employees cannot imagine themselves working elsewhere, however dissatisfied
they are in their job. Availability of other places of employment also influences
turnover. If better avenues are available, an employee may not mind going in search
of them, notwithstanding the present level of satisfaction he enjoys.

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 CHAPTER 3
INDUSTRIAL PROFILE

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3.1 INTRODUCTION

A bank is financial institution which deals with money and credit. It accept
deposits and lends money to those who are need of it. It helps to transfer money from
one place to another. It difficult to provide a clear cut definition to bank because a
modern bank is performing a number of function.

3.2 DEFINITION

In the words of Crowther, “a blank collects money from those have it to spare
or who are saving it out of their own comes, and lends this money to those who
require it”.

3.3 TYPES OF BANKS

1. Commercial banks

These banks perform all type of banking function. It accepts deposits from the
public and lends money generally to trade and commerce. The commercial bank
accepts deposits for a short period. So these banks normally lend short term loans
to business man and traders and avoid medium term and long term landing. But
recently, the commercial bank extended their area of operation of medium term
and long term finance They also render a number of service to customers such as
cheques are custody of valuable, remittance facilities and payment of insurance
premium, electricity bill etc.

2. Industrial banks

These banks are also known as investment banks. They mainly meet the
requirements of medium and long term financial needs of industrial concerns.
They invest their funds in subscribing to the shares and debentures of industrial
concern with the object of providing long term to industries. The main functions
industrial banks are;

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 It accepts long term deposits.
 It helps to cell or undertake the debentures and shares of the industrial
concerns.
 It provide technical assistance to industries.
 It give advices to the industrial concern to make right type investment.

3. Agricultural bank

These banks provides finance to agriculture purpose. In most of the countries

agricultural bank are formed on co-operative. In India there are two types of
agricultural banks formed on co-operative basis such as agricultural co-operative
banks and land development bank. Agricultural co-operative banks generally
provide short term loans and land development banks provide a long term loans to
agriculturists.

4. Exchange bank

Exchange banks are those banks which deals with foreign exchange and
specialize in financing international trade. They play an important role in
promoting foreign trade. A major part of the foreign exchange business is done by
foreign exchange bank in India and a small portion of foreign exchange business
is done by commercial banks. The functions of exchange banks are as follows.

 They purchase and sell foreign currencies gold and silver.

 They accept and collect foreign bill of exchange.
 They purchase or discount export and import bills.
 In a limited way,they accept deposits and advances loan.
 They issue letters or credit to importers.

5. Savings bank

These are the specialized banks which mobilize the savings of the people.
They promote the saving habits of the people. Postal savings bank also performs
these functions in India.

6. Central bank

It is the highest banking and monitory institution of a country. Today, every

country has a central bank. It is the lender of the all banking institutions of the

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 country. It regulates control and supervisors the monitory and credit system of the
country. Reserve bank of India is our central bank. Its main functions consist of,

 Monopoly of note issue.

 Acts as the banker to the government.
 Acts as the banker’s bank.
 Acts as the controller of credit.
 It is the custodian of the foreign exchange reserves.

7. World banks

It is the financial institution which provides financial assistance to its member

countries of the world. After the world wide depreciation and world war second
two institutions were formed in 1994 namely, International Bank of reconstruction
and Development known as World bank .IMF was established to provide short
term funds to overcome the balance of payment difficulties.World Bank was
formed to provide long term to provide long term loans for the purpose of
reconstructing the war damaged economies and less developed economics.

3.4 INDIAN BANKING SYSTEM

Banking system of a country places a significant role in promoting economic

development of every nation. The banking institution is an indispensable part of the
modern society. It mobilizes the financial resources of the community and making
them to flow in to the desired channels Indian banking system comprises both
organized and unorganized banking sector mainly consists of money market,
commercial bank, co-operative bank, regional rural bank etc. Unorganized sector
comprises money lenders and indigenous banks. They cater the needs of a large
number of persons especially in the country side. Co-operative credit societies are
formed for different purpose. Generally they can be classified on the basis of their
structure and the functions they are performed. There are different types of co-
operative credit institutions working in India. This institution can be classified into
two: Agricultural and Non agricultural. Agricultural credit institution dominates the
entire co-operative credit structure.

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2.5.1 CONSTITUENTS OF INDIAN BANKING SYSTEM
1. Reserve Bank of India
The reserve Bank of India is the central bank of our country. It came
into existence on April 1,1935 under the reserve bank of India Act 1934.1t
acts as the leader of the money market and the banker of bankers.It supervises
and regulates the activities of the commercial banks and other financial
institutions of our country.

2. Apex bank
The banks which stand at the top of Indian banking structure after Reserve
bank of India are known as apex bank.These institutions assist and support
development of other financial position of the country.It acts on behalf of RBI
and certain functions of RBI,

 Industrial development bank of India.

 National Bank for agriculture and rural development.
 Export Import Bank.
 Industrial Reconstruction Bank of India.
 Small industries development bank of India
 National Housing Bank.

3. Banking Institutions

 Commercial bank
 Regional rural bank
 Co-operative banks.

4. Investment institutions

 Life Insurance Co-operation of India limited.

 General Insurance Corporation.
 Unit trust of India
 Export Credit Guarantee Corporation.
 Banking market institutions
 District and Finance House of India Ltd.

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2.6 IMPORTANCE OF BANK

Bank plays a significant role in the economic development of a country.The

economic importance of bank is as follows:

1. Banks mobilizes the small, scattered and idle savings of the people and make
them available for productive purposes. In short, they help the process of
capital formation.
2. By offering attractive interest on the savings of the people deposited with
them, banks promote the habit of thrift and savings among the people.
3. By accepting savings of the people, banks provides safety and security to the
surplus money of depositors.
4. Banks provide a convenient and economical means of payment. The system
introduced by banks is of great help for making payments.
5. Banks provide a convenient and economical means of transfer of fund from
one place to another.
6. Banks help the movement of funds from regions whether they are not very
useful to regions where they can be more usefully employed.
7. Banks influence the rates of interest in the money market, through the supply
of money, banks exert a powerful influences on the interest rate in the money
market.
8. Banks help trade and commerce ,industry and agriculture by meeting their
requirements.
9. Banks direct the follow of funds in to productive channels.
10. Through the process of creation of money, banks acquire control over the
supply of money in the country.

2.7 INTRODUCTION OF CO-OPERATION

CO-OPERATIVE MOVEMENT
INTRODUCTION

Co-operative movement is a form of business organization which can be

considered as people movement. Co-operation means working together the persons
who have similar interest.

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 According to Calvert, “Co-operation is an organization where members united
themselves as social being voluntarily to safeguard economic interest”.

HISTORY

England considered as the birth place of co-operative movement in the old.

There are different type of co-operative movement in the world and different
countries focused on different types. In England they promote consumer co-operative
with the leadership of Mr. Robert Owen who as the father of co-operation Germany
focused more on credit societies. In Germany Mr.F.W.Raiffeisen and Mr.Schulze
Delizh were the leaders .Different nations specializes in different co-operative
movement as Japan contributes to multi co-operatives, China contributes to industrial
co-operatives, while Denmark gave importance to dairy co-operatives and USSR
contributes to collective farming.

CO-OPERATIVE PRINCIPLES
Co-operative principles are the broad guidelines for co-operative societies in
conduct of their various activities. Without these principles no lasting co-operative
system is possible. The success of co-operative organization depends upon the
application of co-operative principles.

Following are the co-operative principles;

 Voluntary and open membership

 Democratic member control
 Member economic participation
 Education, training, information
 Autonomy and independence
 Co-operative among co-operatives
 Concern for community

A part from the above,

 Self help and mutual help

 Each for all and all for each
 Service motive

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CO-OPERATIVE SOCIETIES IN KERALA

The Kerala Co-operative Societies Act is the law relating to the co-operative
societies in the state. The Act has come into force on 15-5-1969.The Act specially
repeats the Madras Co-operative Societies Act 1932 and Travancore Cochin Co-
operation Societies Act. As for the Co-operative Societies Act 1932 and Travancore
Cochin Co-operation Societies Act, the following are the features of the Act.

 The societies shall be registered in the state with limited liability.

 15% of the profit should be apart for the reserve fund.
 Rate of maximum dividend is fixed at 20%.
 This Act makes provisions for setting up to representative general body for big
co-operatives.
 Minimum 25 persons required for registration of co-operative society.

CO-OPERATIVE BANK

Co-operative Banks play an important in the economic development of our

nation.Co-operative banks are the institutions established on the principles of
co-operation and it deal in ordinary banking business. It is formed to extend credit
facilities to farmers and small scale industries. It helps to promote thrift and self help
among the low and middle income group of the societies. The main feature of the co-
operative banks is that it has no profit motive .And they collect funds through shares,
accepts deposit and grant loan.

Co-operative bank differ from stockholders banks by their organization, their

goals, their rules and their governance. In most countries, they are supervised and
controlled by banking authorities and have to respect banking regulations, which put
level playing fields with stockholders bank.

Co-operative banks are small sized units organized in the co-operative sector
which operate both in urban and non-urban centered around communities, localities
and work place groups and they lend to small borrowers and business. Co-operative
banks in India are registered under the co-operative societies Act. The Co-operative

19
bank is also regulated by the RBI. They are governed by the banking regulations Act
1949 and banking laws Act1965.These co-operative banks provide most services such
as savings and current accounts and safe deposit lockers, loan or mortgage to private
and business customers. For middle class users, for whom a bank is where they can
save their money, facilities like internet banking or phone banking is not very
important Co-operative banks function on the basis of “no profit-no loss”. Co-
operative banks, as a principle do not pursue the goal of profit maximization.
Therefore, these banks do not focus on offering more than the basic banking service.
So, co-operative bank finance small borrowers in industrial and trade sectors, besides
professional and salary classes

STRUCTURE OF CO-OPERATIVE BANKS

In ancient year, co-operative banking in India is federal in structure .It has
three sections, at the top, there is the state co-operative banks which is the apex at the
state level at the intermediate level, there are the central unions and central co-
operative banks. There is generally one central co-operative bank for each district. At
the base, there are the primary credit societies which cover the small towns and
villages. But, in the present era, it has been developed. At the co-operative banking
structure in India is divided into the following categories.

 Primary urban co-operative bank

 Primary Agriculture credit societies
 District central co-operative bank
 State co-operative bank
 Land development banks

Among these categories, primary agricultural credit societies, district co-

operative bank, state co-operative banks are consent rating more on short firm
services for the development of rural people. So they are more important in
co-operative banking structure.

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STRUCTURE OF CO-OPERATIVE INSSTITUTION IN INDIA

CO-OPERATIVE BANK

AGRICULTURAL NON AGRICULTURAL

Short term Long term Employee District

Central Apex
and medium credit s co-op. central
co-op. industri
term credit institution credit co-op.
house al co-
societies urban
mortgage op.bank
bank
State State Co-
Co-op op land
Bank mortgage
banks Primary
City co- industri
Central op. house al co-
Co-op Primary co- mortgage op.bank
Bank op. land bank
mortgage
bank
Village
banks,
rural
banks
etc.

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A) PRIMARY AGRICULTURAL CREDIT SOCIETIES

Co-operative credit societies, commonly known as the Primary Agricultural

Credit Societies can be defined as an association of persons residing in a particular
society. It can be started with ten or more persons. The membership is open to all the
resident of the locality or village.

Each member contributes to the share capital of the society. Each one is
responsible for the entire loss of the society, in the event of failure. The management
is honorary, the only paid member normally being the secretary treasure. Loans are
given for short periods for caring on agricultural operations. And rate of interest is
fixed at 6%

B) CENTRAL CO-OPERATIVE BANK

The central co-operative banks are federations of primary credit societies in a

specific area, normally a district and are usually located in the district headquarters or
some prominent town of the district. The banks have a few private individuals as
shareholders who provide both finance and management. The central co-operative
have three sources of funds as their own share capital and reserve, deposit from the
public and loans from the state co-operative banks.

C) STATE CO-OPERATIVE BANK

The state co-operative bank, also known as apex banks, from the apex of the
credit structure in each state. They obtain their funds mainly from the general public
by way of deposit, loans and advances, from the reserve bank and their own shares
capital and reserves. Anywhere between 50-90% of working capital of the state co-
operative banks are contributed by the Reserve Bank.

IMPORTANCE OR BENEFITS OF CO-OPERATIVE BANK

The co-operative movement has become a powerful instruments for rapid

economic growth; it has resulted in several benefits. The expansion of cooperative
banks has resulted in several benefits. They are;

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 1. They provided cheap credited to farmers, the discouraged unproductive
borrowing.
2. They have reduced the importance of money lenders .more than 60% of the
credit needs of the agriculturists now met by co-operative banks. Thus,co-
operative bank have protected the rural population from the clutches of money
lenders.
3. Small and marginal farmers are being assisted in increasing their income.
4. They promoted saving and banking habits among the people, especially rural
people.
5. They had undertaken several welfare activities, they have also taken steps to
improve the morals, policy and education.
6. They have played an important part in changing the old customs and traditions
of the people which are obstacle to progress and economic development.
7. They greatly helped in the introduction of better agriculture methods.Co-
operative credit is available for purchasing improved seeds,chemical fertilizers
and modern implements cheaply they produce at good prices.

PROBLEMS /WEAKNESS CO-OPERATIVE BANKS

Various committees and commissions have the working of co-operative banking
system. They pointed a number of weaknesses of the system major of them are:

1. EXCESSIVE OVER DUES

The borrowers from the co-operative banks are not repaying the loans
promptly and regularly, therefore there is heavy overdue. Besides over dues
increasing alarmingly: lack of will and discipline among the farmers to repay loans is
the principle factor. It restricts the recycling of funds and adversely affecting the
lending and borrowing capacity of society.

2. INEFFICIENT SOCIETIES

The co-operative credit societies are managed by people who have no

knowledge of co-operation. They do not have necessary experience and training

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 3. REGIONAL DISPARITIES

Co-operative benefits are not evenly distributed as between different states

.The loans advanced per member vary widely. There is the problem of regional
disparities in the distribution of co-operative credit

4. INADEQUATE COVERAGE

Co-operative have covered almost all the rural areas of the country. But the
membership is only around 55% of the rural families.45% of rural families are thus
still not covered under the co-operative credit system.

5. COMPEITION FROM PRIVATE AGENCIES

These banks are facing stiff competition from money lenders and traders
because of this co-operative could not make such progress.

SUGGESTIONS FOR THE IMPROVEMENT OF CO-OPERATIVE

CREDITSOCIETIES

1. The resources of the co-operative bank should be improved. Their dependence

on outside resources must be reduced considerably.
2. The primary societies should be made more liable and economically strong
units.
3. The liability of the member of the primary co-operative should be made
limited.
4. Co-operative training facilities should be expanded and the co-operatives
should be managed by well-trained personnel.
5. Co-operative movement should become people’s movement. They should be
made to realize the benefits of co-operations.
6. Loans given should be enough to meet agricultural and other expense so that
members need not approach management.

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STRUCTURE OF INDIAN CO-OPERATIVE MOVEMENT

STATE CO-OPERATIVE SOCIETIES

CENTRAL CO-OPERATIVE SOCIETIES

PRIMARY CO-OPERATIVE SOCIETIES

25
 CHAPTER 4

PROFILE OF THE BANK

26
ALAKODE SERVICE CO-OPERATIVE BANK

The Alakode Service Cooperative Bank Ltd No: C 239 has registered
as a primary on 9 September 1960, as a cooperative society under the act of 1932 and
started functioning on 5 October 1960. The name of the Bank is Alakode Service
Cooperative Bank Ltd. It situated at Alakode in Kannur district. It address is Alakode
post, Taliparamba Taluk , Kannur district.

AREA OF OPERATION

The Alakode Service Cooperative Society bank operation is confined

Alakode amsham.

OBJECTIVES OF THE BANK

The important objectives of the bank are :

 To borrow funds from members or others to be utilized for loans to

members for useful purpose.
 To produce and supply agriculture requirements like seed, manure,
implements, and cattle feeds etc.
 To arrange for the sale of agriculture produce of members to the best
advantage.

27
  To own or hire processing plants like rice mills , oil crushers gins and
improved machineries like tractors, machine plough etc. for the
benefits of the members.
 To undertake collection of bills, draft and cheques on behalf of
members and provide facilities for transmission of funds.
 To issue housing loans and overdrafts to the employees of the bank as
per the subsidiary rules framed by the board of directors with the
approval of joint registrar.
 Eventually to encourage thrifts, self help and co-operation among the
members.
 To own or hire godowns to provide facilities to members to store their
produce for sale at a profitable price.

LIABILITY OF MEMBERS

The liability of members for the debts of the bank shall be limited to
the value of share paid by them. It occurs when the society in the liquidation.

BRANCHES

At present, the bank has 5 branches. The Bank Head office is Alakode.
The branches are:

1. Karthikapuram branch
2. Rayarome branch
3. Udayagiri branch
4. Alakode –Evening branch
5. Nellippara – Evening branch

BOARD OF DIRECTORS

The board of directors shall consist of not more than 11 directors who
shall be elected from among the 13 directors. One seat each shall be reserved for sc/st
members, 3 women members , one seat shall be reserved for the person among the
members mentioned under Bye-law, 2 seats shall be reserved for the members who
possesses banking experience (at middle or senior management level) or with relevant
professional qualification ie chartered accountants with bank accounting or auditing

28
experience. The member of the board of directors shall be elected by the general body
for 5 years. General body is the supreme authority of the bank.

STAFF PATTERN

An efficient team of employees runs the bank. For any cooperative

institution, cooperation of employee is essential. At the present the total number of
employees working in the bank is . The hierarchy at the employees is as shown
below:

Secretary

Assistant Secretary/Chief Accountant

Branch Manager

Internal auditor

Accountant

Senior Clerk

Junior Clerk

Attender

Peon

Watchman

MEMBERSHIP OF THE BANK

The Alakode Service Cooperative bank has 4 types of members. They

are ‘A’- class, ‘B’- class, C- class and D class. Those who have completed the age of
18 years and residing in the area of operation of the bank will be admitted as A class
members. They should pay Rs. 20 for the face value . They have voting rights and
right to participate general body meeting. B class members are the government
membership in this bank. Ie State government, State cooperative bank, District
cooperative bank, etc. They should pay Rs.100/- per shre. C class and D class

29
membership is normally given to those who want to take gold loan and other non-
agriculture loan from the bank. C class members should pay Rs 5/- per share and D
class should pay Rs.50/-. The details of membership position for the 5 periods since
2012-13 are given below:

Table 3.1
Membership position

YEAR A CLASS B CLASS C CLASS D CLASS TOTAL

2013-14 14335 2 7267 280 21884
2014-15 14474 2 7703 535 22714
2015-16 14658 2 8172 803 23635
2016-17 14725 2 8645 1077 24449
2017-18 14771 2 9127 1379 25279

INTERPRETATION
The above table shows that the membership position of the bank
increase every year from 21884 during 2013-14 to 25729 during 2017-18. Increase in
total membership position is due to increase in A, B and C class categories and B
class membership constant at 2. The bank should enhance its C class membership by
giving more gold loans but unable to increase A class shares in the same proportion.
Therefore, the bank should try to enhance it’s A class members who are actually the
original members who have voting rights.

SOURCES OF FUND

SHARE CAPITAL OF THE BANK

Share capital is an important part of the working capital. It represents

the initial contribution made by a member towards the resources of the society, to get
the desired services. The share capital can be withdrawn any time but until the expiry
of the period fixe in the byelaw, which is generally 3 to 5 years. There are three types
of shares in this bank. A class, B class, C class and D class. The following table
shows the share capital position of the bank for last 5 years commencing since 2013-
2018

30
 Table 3.2
Share Capital Position

Type /Year 2013-14 2014-15 2015-16 2016-17 2017-18

A Class 72.38 82.38 87.05 90.06 93.45

B Class 2.25 2.15 3.00 2.95 2.85

C Class 0.36 0.62 0.75 0.80 0.90

D Class 0.14 0.03 0.06 0.07 0.08

Total 75.13 85.18 90.86 93.88 97.28

Growth - 1.33 2.09 2.49 2.95

The share capital position of the bank witnessed an increasing trend with an
overall growth rate of 99.85%. Even though, the total share capital showed an
increasing trend, the B class ie . Government share capital and D class share
capital fluctuated.

RESERVE FUND

The reserve fund is a fund which is established for the purpose of covering
expenses which will come up in the future. The Alakode service bank maintaining a
certain percentage of the net profit as reserve. The details is shown on the below table.

Table 3.3

Year 2013-14 2014-15 2015-16 2016-17 2017-18

Reserve 19.10 25.78 25.78 25.78 25.78
Growth rate - 34.97 34.97 34.97 34.97

31
 In this table we can easily know that the reserve of fund of the bank is same in
every year expect 2013. In 2013-14 the reserve is 19.10 lakhs and in 2014-15 to 2015-
16 the amount is same 25.78.

BORROWINGS FROM DCB AND OTHER INSTITUTIONS

Borrowing is the important source of fund of the bank. The bank can borrow
money from DCB and other financial institutions. Only with the approvement of the
Registrar. The following table shows the position of the borrowing of the Alakode
Service Cooperative Bank.

Table : 3.4

Year 2013-14 2014-15 2015-16 2016-17 2017-18

Borrowing 97.96 105.97 107.23 107.91 110.96

- 8.17 9.46 10.17 13.27

The borrowing of the bank are increasing every year of the study period. In the
year 2013-14 the borrowings of the bank is Rs: 97.96 lakhs and in 2017-18 the
amount is increased to Rs : 110.96 lakhs.

DEPOSITS OF THE BANK

The banks accepts various types of deposits from the members and non-
members of the bank. They are:

FIXED DEPOSIT

A fixed amount deposited for a fixed period is called fixed deposit. Fixed
deposit is accepted as per the guidelines of the registrar of co-operative societies from
time to time in this regard. Fixed deposits are accepted for different periods having
different rate of interest as given below:

32
 Table no 3.5

PERIOD INTEREST

15-45 days 6%

46-90 days 6 ¾%

91-180 days 7 ¼%

181-364- days 7 ¾%

1 year 8½

1 year & above 8

Senior citizen ½ more

SAVINGS DEPOSIT
These deposits are meant for middle and low income groups. The bank
permits any person to open a savings bank account with a minimum of Rs. 100. The
minimum balance kept in savings bank account is Rs. 100. The interest on savings
bank account is now 5%. The interest is calculated on the lowest amount standing in
the account.

CURRENT DEPOSIT

These deposit called demand deposits, because the money should be repaid as
and when demanded by the customers. This type of deposit is suitable for
businessman. No interest is allowed in this type of deposits.

RECURRING DEPOSIT

The purpose of these accounts is to encourage regular saving by public,

particularly by the fixed income group. Generally money in these accounts is
deposited in monthly installment for a fixed period and is repaid depositors along with
interest on maturity. The rate of interest of these deposits is nearly same as fixed
deposit.

33
DAY DEPOSIT

This deposit is mainly meant for wage earns and small traders to invest their
daily wages. The depositors have to pay any amount daily to the bank. The bank has
appointed collection agents for collecting the deposits.

Table: 3.6

Year 2013-14 2014-15 2015-16 2016-17 2017-18

SAVINGS DEPOSIT 369.75 413.78 520.04 516.30 762.10
CURRENT DEPOSIT 97.7 159.09 201.98 287.78 338.89
FIXED DEPOSIT 1208.37 1342.54 1606.93 1962.84 2571.38
TOTAL 1675.82 1915.41 2328.95 2766.92 3672.37
GROWTH RATE - 20.66 38.38 57.72 108.42

The deposit of the bank is increasing trend. Every year it is increasing. In the
year 2013-14 the total deposit of the bank is Rs : 1675.82lakhs and in 2017-18 it Rs .
3672.37lakhs.

WORKING CAPITAL

Working capital may regard the life blood of a business. The positions of
working capital for the 6 years period commencing since 2013-14 is given below:

Table 3.7
Working Capital Position

YEAR WORKING CAPITAL GROWTH RATE

2013-14 2911250.63 -
2014-15 4071507.44 39.85%
2015-16 5160160.78 77.24%
2016-17 5681889.00 95.17%
2017-18 5874614.08 101.79%

34
 The working capital position of the bank witnessed an increasing trend
increasing from Rs. 2911250.63 lakhs during 2013-14 to Rs. 5874614.08 lakhs during
2017-18 with an overall growth rate of 101.79%. The increase in working capital is
due to increase in deposits and share capital.

INVESTMENTS

The Alakode service cooperative bank has invested their money in various
institutions and DCB. The institutions are DCB, district consumer stores, other banks,
cooperative hospital etc.

Table : 3.8

YEAR AMOUNT GROWTH RATE

2013-14 104.82 -
2014-15 118.76 9.53
2015-16 129.66 19.59
2016-17 140.15 29.26
2017-18 426.45 54.65

The table clearly shows that the investment of the bank is increasing every
year except 2016. The bank is invested amount in other institutions and more amount
is get back as interest to the bank. It is the main income of the bank.

FUNCTIONS

The main activities of the bank is to accept deposit and provide short term
loans, medium term loans and long term loans to members for agricultural and non-
agricultural purposes. The bank issues loan on pledged gold ornaments also. It issues
loan on security of fixed deposit certificates.

DEPOSITS

The information is already explained above heading sources of fund.

35
 LOANS

As started in the beginning the function of any bank is to mobilize fund from
various sources and to utilize for lending among the needy. Now we can lock in to the
different kinds of loan the bank is disbursing among its members on fixed rate of
interest. The lending rate is charged on the basis of cost of funds.

 Agriculture loan

Agricultural loans are such loan issued for agricultural purposes. The bank
provide agricultural loan with interest rate for their customers. Interest rate of
agriculture loan is 7%.

 Gold loan

An advance on gold jewels will be granted to nominal members of the bank at

the discretion of the branch manager or the office authorized board from time to
time. Such person should b a good and regular customer of the bank or others who
are properly introduced. The borrower must declare that jewels are his own and he
must agree to abide by the valuation of the appraiser. Loans should be repaid
within a period of one year from the date of advance and it should be treated as
overdue if the interest in arrears for over 6 months or from the date of expiry of
the year from the date of advance whichever is earlier. The maturity period of this
loan is 1 month, 3 months, and 6 months duration and the interest of this loan is
13%.

 Non agricultural loan

Any other credit facility offered to the member is categorized as non

agricultural loan. These loans vary in their duration and rate of interest.

 Short term loan

Short term loans mainly for consumption purpose, petty trader purpose, hire
purchase marriage purpose.

36
  Medium term loans

The bank issues medium term loan for the period ranging one year to five
year. The loan is provided for consumption, mortgage loan surety loan for self
employment purpose. Normally repayment period of this loan is two years.

 Mortgage loan

A mortgage loan in which property is used as collaterals. The borrower enters

in to an agreement with lender where in the borrower receives cash upfront then
makes payments over a set time span until he pays back the lender in full. A legal
agreement that coveys the conditional right of ownership on an asset or property
by its owner to a lender as security for a loan.

 Personal loan
Personal loans granted for personal (medical) family (education, vacation) or
household (extension, repairs, purchase of computer etc) use, as opposed or
commercial use. Such loans are either unsecured or secured by the asset purchased
or by a consignor (guarantor). Unsecured loans are advanced on the basis of the
borrower`s credit history and ability to repay the loan from personal income.
Repayment is usually through fixed amount installment over a fixed term. The
rate of interest of personal loan is 15%.

Table : 3.9
LOANS

YEAR 2013-14 2014-15 2015-16 2016-17 2017-18

AGRL LOAN 872.26 647.58 108.39 944.54 115.48

GOLD LOAN 500.31 534.03 604.5 738.19 824.24

OTHER NON
438.42 813.28 1435.99 472.74 1625.42
AGRL LOAN

TOTAL 1810.99 1994.89 2148.88 2155.47 2701.09

GROWTH RATE - 10.15 18.65 19.02 49.14

37
 The loans of the bank are showing an increasing trend in the study period. But the
growth of loan is not in a good rate.

OVERDUE POSITION
A high overdue position is not all well as compared to financial institution but
at the same time it is unavoidable. The overdue position of the Alakode service bank
is showing a decreasing trend in the case of overdue. Because of correct mashers
taken by the management.

Table : 3.10

Year Overdue (amt) Overdue (in %)

2013-14 293.33 10.02
2014-15 247.88 8.23
2015-16 201.75 6.24
2016-17 202.33 5.87
2017-18 162.41 1.62

The overdue percentage of the bank is decreasing in every year. In the year
2013-14 the overdue percentage of the bank is 10.02% and it decrease to 1.62% in the
year 2017-18, because of efficient management of the bank and hard working of
employees to collect the debts.

APPROPRIATION OF PROFITS

1. 25% on reserve fund.

2. 15% on agricultural stabilization.
3. Co. operative education fund on the basis of laws and rules.
4. 20% profit distribution of A,B,C class members.
5. 10% for charitable purpose according to Charitable Endowment Act Sec.2.
6. 5% on member`s welfare fund.
7. 5% on commission agent benefit.
8. 10% on building fund.
9. 10% on dividend equalization fun.
10. 10% on bad and doubtful debts.
11. 5% on employee benefit fund.

38
 AUDIT CLASSIFICATION

A cooperative is done to examine the overdue debts, verify the cash and
securities for valuing the assets and liabilities, to check whether the affairs of the
society have been carried in accordance with the principle Act, Rules, and Byelaws of
the society. The auditor also gives advice and induces assistance to the management
on all matters to connect with the working of society. It is done on a regular intervals
and the bank is graded with some classification. The auditors in their report give the
classification every year a based on financial structure business functioning , accounts
maintenance and other related aspects of the bank.

Table : 3.11

Year 2013-14 2014-15 2015-16 2016-17 2017-18

Audit B B B B C
classification

39
 CHAPTER 4

ANALYSIS AND INTERPRETATION OF DATA

40
 Table -4.1
EXPERIENCE AT WORK

Number of years Number of Respondents Percentage

Below 5 4 12

5-10 8 35

Above 10 18 53

Total 30 100

Figure – 4.1
Work Experience

60
53

50

40
35

30

20
12
10

0
Below 5 10-May Above 10

INTERPRETATION

It is clear from the table 1 that 53% employees have above 10 years of
experience. 12% of employees have below 5 years of experience. 35% of employees
have 5-10 years of experience.Majority of respondents have above 10 years of
experience. They are quite aware of the living and working condition of the
organization.

41
 Table-4.2

PRESENT JOB SUITS WITH QUALIFICATION

Suits with Number of Respondents Percentage

qualification
Strongly Agree 11 27
Agree 23 58
Strongly Disagree 0 0
Disagree 6 15

Total 30 100

Figure - 2

Present Job suits with my qualification

58
60

50

40
27
30

20
15
10
0 0

Strongly
Agree
Agree Strongly
Disagree
Disagree

INTERPRETATION

The above table shows that 58% of the respondents agree that their job suits
with their qualification. And 27% of respondents strongly agree with this. 15% of the
respondents disagree with this statement..Majority of employees feel that they have
got deserved job of their qualification. But certain percentage is of the opinion that the
job that they are doing is not of their qualification. It may be below their qualification
or above.

42
 Table – 4.3

JOB RESPONSIBILITY MAKES YOU FEEL IMPORTANT

Feel important of Number of Respondents Percentage

responsibility
Yes 22 82
No 6 10
Some what 2 8
Total 30 100

Figure - 4.3

Job responsibility makes you feel important

30 27
25

20

15

10 8
5
5

0
Yes No Some what

INTERPRETATION

The table-8 shows that, 82% of the respondents say that the job responsibility
makes them feel important at work. 8% of the respondents were of the opinion that
job responsibility makes somewhat important. 10% of the respondents say that job
responsibility doesn’t make them important at the organization. Most of the workers
feel proud of the responsibility assigned to them. The level of satisfaction improves
with this feeling.

43
 Table – 4.4

SKILLS ARE UTILISED COMPLETELY

Full utilization of Number of Respondents Percentage

skills
Strongly Agree 6 25
Agree 18 57
Strongly Disagree 2 3
Disagree 4 15

Total 30 100

Figure- 4.4

Skills are utilized completely

60
50
40
30 57
20
25
10
0 15
3
Strongly Agree
Agree Strongly
Disagree
Disagree

INTERPRETATION

The table-9 reveals that, 57% of the respondents feel that they are able to
utilize their skills completely. 25% of the respondents strongly agree with this 3% of
the respondents strongly disagree with this statement. 15% of the respondents feel that
their skills are not utilized to the maximum. Most of the employees feel satisfied that
they could utilize their skills completely in their job.

44
 Table -4.5

LEVEL OF SATISFACTION REGARDING WELFARE MEASURES

Welfare measures Number of Respondents Percentage

Highly satisfied 2 11
Satisfied 16 55
Neutral 6 26
Dissatisfied 5 6
Highly dissatisfied 1 2
Total 30 100

Figure – 4.5

Level of satisfaction regarding welfare measures

60 55

40
26
20 11
6
0 2
Highly satisfied
Satisfied Neutral
Dissatisfied
Highly dissatisfied

INTERPRETATION

The analysis reveals that the majority of employees are satisfied with the
welfare measures provided by the bank. The organization can continue with this
welfare measures and it can also make necessary improvement so that the level of
satisfaction of the employee can be improved.

45
 Table – 4.6

CONCENIENT WORKING CONDITION

Better working condition Number of Respondents Percentage

Strongly Agree 5 10
Agree 24 82
Strongly Disagree 0 0
Disagree 1 8
Total 30 100

Figure-4.6

Convenient working condition

90
80
70
60
50
40 82
30
20
10 10
0
0 8
Strongly Agree
Agree Strongly
Disagree
Disagree

INTERPRETATION

The working condition prevailing in the organization is one of the important

factors leading towards job satisfaction. The employees are satisfied with the present
working condition at the bank. But small percentages of the employees are not much
satisfied with the present condition. So the bank should try to improve the present
working condition so that it can achieve complete satisfaction from the side of
employees.

46
 Table -4.7

ATTENDING TRAINING PROGRAM VOLUNTARLY OR DUE TO

COMPULSION FROM MANAGEMENT

Attending the training Number of Respondents Percentage

program

Voluntary with own interest 22 78

Compulsion from management 8 22

Total 30 100

Figure 4. 7

Attending training program voluntarily or due to compulsion

80

60

40 78

20
22
0

Voluntary with own

interest Compulsion from
management

INTERPRETATION

The above table shows that, 7% of the respondent responded that they attend
the training program voluntary with own interest. 10% of the respondent says that
they attend due to the compulsion from the side of management. Analysis shows that
majority of the employees are genuinely interested in attending the training program
so that they can improve their skills and knowledge as a result they can perform their
job more efficiently and effectively.

47
 Table -4.8

SATISFIED WITH THE RELATIONSHIP WITH SUPERIORS AND

CO-WORKERS

Better relationship Number of Respondents Percentage

Strongly Agree 10 27
Agree 20 73
Strongly Disagree 0 0
Disagree 0 0
Total 30 100

Figure – 4.8

Satisfied with the relationship with superiors and co-workers

80

60

40
73
20 27
0

Strongly Agree
Agree
Strongly
Disagree

INTERPRETATION

The Table reveals that 27% of the respondents strongly agree that they are
satisfied with the relationship with their superiors and co-workers. And 73% of the
respondents agree with this statement. Maintaining better relationship with the
employees helps in improving their level of satisfaction. It gives them a freedom to
share everything with the superiors and co-workers. Majority of the employees says
that they could able to maintain a better relationship with the co-workers and
superiors.

48
 Table -4.9
SUPERIORS OFTEN APPRECIATE YOUR BETTER PERFORMANCE

Superiors appreciate Number of Respondents Percentage

better performance
Strongly Agree 4 24
Agree 18 52
Strongly Disagree 6 8
Disagree 2 16
Total 30 100

Figure – 4.9

Superiors often appreciate your better performance

60

50

40

30

20

10

0
Strongly Agree Agree Strongly Disagree Disagree

INTERPRETATION

Among total respondents 52% of the respondents say that their superiors often
give appreciation for their better performance. 8% of them strongly agree this. 16 %
of the respondents show disagreement to this statement. Even though major portion of
the employees are satisfied with the appreciation given by the superiors, there are
certain percentage of employees who are not satisfied with the superior’s treatment.

49
 Table -4.10

SUPERIORS INVITE SUGGESTIONS FROM EMPLOYEES FOR

IMPROVEMENT OF THE ORGANIZATION

Superiors invite Number of Respondents Percentage

suggestions
Strongly Agree 2 10
Agree 26 65
Strongly Disagree 0 0
Disagree 2 25
Total 30 100

Figure – 4.10
Superiors invite suggestions from employees
70
65
60

50

40

30
25
20

10 10

0 0
Strongly Agree Agree Strongly Disagree
Disagree

INTERPRETATION

With regard to invitation of suggestions from employees by management, the

table shows that, 10% of the respondents strongly agree that the management often
invite suggestions from them for the betterment of the organization. 65% of the
employees agree with this statement. But 25% of the respondents were of the opinion
that they didn’t offer any opportunity to express their suggestions for the
improvement of the organization.The organization must invite valuable suggestions of
the employees which may help for the growth and development of the organization.

50
 Table -4.11

FEEL PROUD OF WORKING IN MY BANK

Feel proud Number of Respondents Percentage

Strongly Agree 5 25
Agree 25 75
Strongly Disagree 0 0
Disagree 0 0
Total 30 100

Figure - 4.11
Feel proud of working in my bank

70 65

60

50

40

30 25

20

10
0 0
0
Strongly Agree Agree Strongly Disagree
Disagree

INTERPRETATION

The table reveals that, 25% of the respondents strongly agree that they feel
proud of working in the bank. 75% of the respondents agree with this statement.All
the respondents feel proud of their job at bank. They have positive attitude towards
the job. This is an indication towards Employee satisfaction.

51
 Table -4.12

OPINION ABOUT NATURE OF JOB

Nature of job Number of Respondents Percentage

Very Easy 8 25
Very hard 2 3
Neither hard nor easy 20 72
Total 30 100

Figure - 4.12
Opinion about nature of job

80
70
60
50
40
30 72
20
25
10
0 3
Very Easy
Very hard
Neither
hard nor
easy

INTERPRETATION

That table 22 showing the opinion of the respondents about the nature of the
job reveals that 25% of the respondents say that their job at the bank is very easy. 3%
of the respondents say that their task is very hard. 72% responded that their job is
neither hard nor easy. When the job is too easy to perform then the employees may
not find it challenging. It may not help them to utilize their complete skills. When it is
too hard, it may drain out all energy of the workers and at the end of the day they may
get exhausted. So it must be at optimum level. Majority of the employee’s job is
neither too hard not too easy.

52
 Table -4.13

DOES COMPUTERISATION OF BANKING HELPFUL TO EMPLOYEES

Computerization Number of Respondents Percentage

helpful
Yes 28 95
No 0 0
Some what 2 5
Total 30 100

Figure - 4.13
Does computerization helpful to employees

95
100

80

60

40

20
0 5
0
Yes
No
Some
what

INTERPRETATION

The Table 23 which deals with the helpfulness of computer at bank shows that
95% of the respondents feel that computerization at bank is really helpful for them.
But 5% responded that they are not satisfied with the computerization at bank.
Computerization reduces the work load of the employees. It helps them in reducing
their stress at work. Majority of the employees are satisfied with the computerization
at the bank. It really contributes to the job satisfaction of the employees.

53
 Table -4.14

PROVIDED WITH ENOUGH RESOURCES TO GET THE JOB DONE IN

BEST POSSIBLE MANNER

Provided with enough Number of Respondents Percentage

resources
Yes 20 75
No 10 25
Total 30 100

Figure - 4.14
Provided with enough resources

75
80

60

40
25
20

0
Yes
No

INTERPRETATION

The table 24 deals with whether the employees are provided with enough
resources to get their job done in best possible manner, and it shows that 75% agree
that they are given enough resources to do their job: 25% responded that they are not
provided with necessary resources. Majority of the employees are satisfied with the
resource provided by the bank. The organization must ensure that the employees are
given all necessary resources needed to do their job in efficient and effective manner
with in a stipulate period of time.

54
 Table -4.15

TYPE OF REWARD OFFERED BY THE BANK

Type of reward Number of Respondents Percentage

Monetary 22 55
Non monetary 8 45
Total 30 100

Figure - 4.15
Type of reward offered by the bank

60

50

40

30
55
45
20

10

0
Monetary Non monetary

INTERPRETATION

The table shows that, 55% of the respondents say that they are given monetary
reward. 455 of the respondents say that they are given non-monetary reward.

Rewards whether it is monetary or non-monetary satisfied the employees. It is

one of the important factors which determine the employee level of satisfaction.

55
 Table -4.16

TYPE OF REWARD PREFERED BY EMPLOYEES

Type of reward Number of Respondents Percentage

preferred
Monetary 18 45
Non Monetary 12 55
Total 30 100

Figure - 4.16
Type of reward preferred by the employees

60
55
50
45
40

30

20

10

0 0
Monetary Non Monetary

INTERPRETATION

The table 26 deals with the types of reward preferred by the employees. It
shows that 45% of the respondents prefer monetary rewards. And 55% of the
respondents prefer non-monetary reward. Majority of the employees prefer non-
monetary reward from the organization for their better performance.

56
 Table -4.17

ARE THE EMPLOYEES SATISFIED WITH THE REWARD AND

RECOGNITION PROCEDURE IN THE BANK

Satisfied with reward Number of Respondents Percentage

and recognition
Yes 17 67
No 13 33
Total 30 100

Figure - 4.17
Satisfied with the reward and recognition procedure

80 67

60

40 33

20

0
Yes Percentage
No

INTERPRETATION

The table 27 reveals that, 67% of the respondents agree that they are satisfied
with the existing reward and recognition system followed in the bank. But 33% of the
respondents are not satisfied with the existing procedure. By providing appropriate
rewards and recognition to the employees will improve their level of commitment
towards their work and they will be more satisfied. Majority of the employees are
satisfied towards the present system followed in the bank. Yet certain percentage of
employees still feels some sort of dissatisfaction in this regard that the organization
should take into consideration.

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 Table -4.18
EMPLOYEES FEEL FREE TO DISCUSS THEIR PROBLEMS WITH THE
MANAGEMENT

Feel free to discuss Number of Respondents Percentage

Yes 18 95
No 12 5
Total 30 100

Figure - 4.18
Employees feel free to discuss the problems with the management

95
100
80
60
40
20 5
0
Yes
No

INTERPRETATION
The table 28 indicates that 95% of the respondents say that they feel free to
discuss their problems with the management. 5% of the respondents show
disagreement towards to this statement.

Employees feel more relaxed and comfortable at work place when they are
able to communicate freely with their superiors and when they feel free to discuss
their problems with their management. Majority of the employees feel free to
communicate their issues with the management, as a result better relation can be
maintained in the organization which helps in improving the satisfaction of the
employees.

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 Table -4.19

SUPERIORS DEAL THE EMPLOYEES PROBLEM FAIRLY

Date the problem Number of Respondents Percentage

fairly
Strongly Agree 3 12
Agree 18 60
Strongly Disagree 0 0
Disagree 9 28
Total 30 100

Figure - 4.19
Superiors deals with the employees problem fairly

70

60

50

40

30 60
20
28
10
12
0 0
Strongly Agree Agree Strongly Disagree
Disagree

INTERPRETATION
Since the employees are the backbone of the organization, they should be
given due consideration. Every matters concerning them should be given due
attention. Their problems should be taken into consideration seriously and should
solve them as soon as possible. Major portion of the employees are satisfied with the
treatment of the superiors in this regard. But certain portions are not. So the
organization should take necessary steps to satisfy them too.

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 Table -4.20

OPINION ABOUT GRIEVANCE HANDLING PROCEDURE

Opinion about Number of Respondents Percentage

grievance handling
Very good 2 12
Good 22 68
Poor 6 20
Total 30 100

Figure - 4.20
Opinion about grievance handling

80 68
60

40
20
20 12

0
Very good Good Poor

INTERPRETATION

12% of the total respondents say that the organization is following very good
grievance handling system 68% of them rank it as good. 20% of the respondent’s
opinion is that the organization is following a poor grievance handling system.

An effective grievance handling system should be there in the organization to

solve the grievance fairly and justly as and when it arises. Majority of the employees
are satisfied with existing grievance handling system followed in the organization.
But there are employees who feel dissatisfied with this regard.

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 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

61
FINDINGS

 Out of total respondents 65% are male and 35% are female employees. The
majority of employees are male.

 Among the total respondents 42% falls under the age group of above 40. 28%
of respondents belong to age group of 36-49. 20% of respondents fall under
the age group of 39035. And 10% are below 30.

 Out of total respondents 85% are married and 15% are single.

 53% employees have above 10 years of experience. 35% of employees have

below 5 years of experience. 12% of employees have 5-10 years of
experience.
 30% of respondents strongly agree that their job is secured. 65% of
respondents agree to this statement. 5% of the respondents disagree with this.
 63% of the respondents agree that they get better salary wages. 32% strongly
agree with this statement. 5% of the respondents feel that they don’t get
comparatively better wages/salary.
 50% of the respondents strongly agree that they are satisfied with their present
position. 43% of the respondents agree with this statement. 7% of the
respondents show some disagreement to this statement.
 58% of the respondents agree that their job suits with their qualification. And
27% of respondents strongly agree with this. 15% of the respondents disagree
with this statement.
 82% of the respondents say that the job responsibility makes them feel
important at work. 8% of the respondents were of the opinion that job
responsibility makes somewhat important. 10% of the respondents say that job
responsibility doesn’t make them important at the organization.
 57% of the respondents feel that they are able to utilize their skills completely.
25% of the respondents strongly agree with this. 3% of the respondents
strongly disagree with this statement. 15% of the respondents feel that their
skills are not utilized to the maximum.

62
 5% of the respondents show a high level of satisfaction regarding the welfare
measures provided by the bank. 63% of the respondents are also satisfied with
it. 32% of the respondents show a neutral level of satisfaction.
 82% of the respondents agree that they have convenient working condition at
the bank. 10% of the respondents strongly agree with this statement. But 8%
of the respondents disagree with this.
 87% of the respondents agree that they are satisfied with the trade union
activities prevailing in the organization. 8% of the respondents strongly
support this fact. 5% of the respondents show some sort of disagreement
towards this statement.
 95% of the respondents say that they feel free to discuss their problems with
the management. 5% of the respondents show disagreement towards to this
statement.

63
SUGGESTIONS

 Employees are the real assets of the organization. Their contributions

determine its success. So the management should try to satisfy all its
employees.
 Employees put their maximum efforts for the organization, when they feel that
their job is safe and secure in it. Even though majority of the employees feel
that their job is secure at PCR bank, there are some portion who doesn’t feel
so. So the management should try to satisfy them too in order to ensure
genuine commitment from their side.
 Some percentage of employees are not satisfied with their present position at
bank. They feel that their position doesn’t suits with their qualification and
they are not able to utilize their complete skills in it. So the management
should try to identify the competent employees and offer them a better
position at bank which suits with their qualification.
 Better welfare facilities are one of the important factors that can improve the
satisfaction level of employees at work. Since major portion of the employees
feel only neutral level of satisfaction regarding the welfare facilities provided
by the bank, the employees can be made more effective at their work, if the
management could be able to improve the effectiveness of the welfare
measures they offer to the employees.
 Comfortable working environment helps the employees to work freely without
any stress. Since certain portion of employees is not satisfied with the working
condition, they can be made more effective and satisfied if the management
tries to offer little more comfortable work environment where they get enough
resources and better facilities to work with. They feel great if the work
environment offer them certain amount of privacy.
 Training and development programs are provided to the employees with an
aim of improving the knowledge and skills of the employees. If this program
is not able to bring any improvement in the employees, all the efforts will
remain waste.

64
CONCLUSION

Job satisfaction plays significant role in the organization since it has a positive
impact on productivity, presence and performance. Hence resources are having prime
importance in the success of every organization. Most of the problems in the
organizational setting are human in nature rather than physical, technical or
economical. People come to work with specific motive, to earn money to get
employment and to lead to prosperous life. They are selling their labour force for
wages/salary and other benefits. To keep up Human Resource satisfied company
should provide adequate welfare measures by considering their needs.

The study at Alakode Service Co-operative Bank has help to find out various
facilities offered by them to satisfy their employees. The study revealed that all those
facilities has contributed to a great extend to highly satisfy their employees.

By an overall review and study, I can conclude that there exists a high level o
satisfaction among majority of employees, yet there are certain group who are not
satisfied enough among majority of employees, yet there are certain group who are
not satisfied enough regarding some matters. The Alakode Service Co-operative Bank
can achieve a complete satisfaction of the employees if they take some attention to
those groups and they can be proud of their employees. It is the sole responsibility of
any organization to see that their employees who are called the real assets of any
organization are eternally satisfied so as to get the best out of them.

65
 BIBLIOGRAPHY

 Annual reports

 V.S.P.Rao, Human Resource Management. New Delhi Excel books, 2010

 www.pappinissericrb.webs.com

 www.rbi.org.in

 www.bankofindia.com

 https//www.indianbank.net.in/jsp start IB jsp.

 K. Ashwathappa, Organisational behavior, Mumbai Himalaya Publishing

house, 2007.

 P.L.Rao, Comprehensive Human Resource Management, New Delhi Excel

Books, 2004.

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