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PROJECT TITLE "A STUDY OF EMPLOYEE SATISFACTION OF HDFC BANK A project report on Prepared by : Varun Bawa

Acknowledgements If words are considered to be signs of gratitude then let these words Convey the very same My sincere gratitude to HDFC BANK for providing me with an opportunity to work with BANK and giving necessary directions on doing this project to the best of my abilities. I am grateful to all faculty members of my family and my friends who have helped me in the successful completion of this project. 2

CONTENTS Sr. No. Subject Covered

Page No. 1 Banking Structure in India 6-7 2 Indian Banking Industries 8-9 3 Upcoming Foreign Bank in India 10 4 HDFC BANK 11-12 5 Company Profile 13-15 6 Technology used 16-19 7 Product and Customer segments 20-23 8 Business Strategy 24-25 9 Inside Hdfc Bank 26-31

10 Rupee Earned Rupee Spent 32-33 11 Recent Development 34-41 12 SWOT Analysis 42-48 3

BANKING STRUCTURE IN INDIA Scheduled Banks in India (A) Scheduled Commercial Banks Public sector Banks Private sector Banks Foreign Banks in India Regional Rural Bank (28) (27)

(29) (102) Nationalized Bank Other Public Sector Banks (IDBI) SBI and its Associates Old Private Banks New Private Banks (B) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks (55) Scheduled State Cooperative Banks (31) 4

Here we more concerned about private sector banks and competition among them. Today, there are 27 private sector banks in the banking sector: 19 old private sector banks and 8 new private sector banks. These new banks have brought in state-of-the-art technology and Aggressively marketed their products. The Public sector banks are Facing a stiff competition from the new private sector banks. The banks which have been setup in the 1990s under the guidelines of theNarasimham Committee are referred to as NEW PRIVATE SECTOR BANKS. New Private Sector Banks Superior Financial Services Designed Innovative Products Tapped new markets Accessed Low cost NRI funds Greater efficiency INDIAN BANKING INDUSTRIES 5

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth. The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion. The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. 6

Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking group and author of the report. The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players." UPCOMING FOREIGN BANKS IN INDIA By 2009 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's best private bank7

byEuroMoney magazine, Switzerland's UBS. The following are the list of foreign banks going to set up business in India : Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China WE UNDERSTAND YOUR WORLD 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 liberalization of the Indian Banking Industry in 1994.8 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. 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 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. HDFC Bank began operations in 1995 with a simple mission : to be a World Class Indian Bank.We realized that only a single minded9

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.COMPANY PROFILE STRONG NATIONAL NETWORK 10

HDFC BANK HDFC bank ltd provides various financial products and services. It operates In three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail banking segment provides various deposit products, including savings Accounts, current accounts, fixed deposits, and demat accounts. It also offers Auto, personal, commercial vehicle, home, gold, and educational loans; loans Against securities, property, and rental receivables; and health care finance11

Working capital finance, construction equipment finance, and warehouse Receipt loans, as well as credit cards, debit cards, depository, investment

Advisory, bill payments, and transactional services. In addition, this segment Sells third party financial products, such as mutual funds and insurance, as Well as distributes life and general insurance products through its tie-ups With insurance companies and mutual fund houses. The wholesale banking Segment provides loans, non-fund facilities, and transaction services to large Corporate, emerging corporate, small and medium enterprise, supply chain, Public sector undertaking, central and state government departments, and Institutional customers. It offers deposit and transaction banking products, Supply chain financing, working capital and term finance, agricultural loans, And funded non-funded treasury, and foreign exchange products. This segments services include trade services, cash management, and money Market, custodial, tax collection, and electronic banking. In addition, it Provides correspondent bank services to co-operative banks, private banks, Foreign banks, and regional rural banks; and wealth management products For non-resident Indians. The Treasury Services segment operates primarily In areas, such as foreign exchange, money market, interest rate trading, and Equities. As of March 31, 2009 HDFC bank had a network of 1,142 branches 12

And 3,295 automated teller machines in 528 cities in India . The company was founded in 1994 and is based in Mumbai , India . KEY EXECUTIVES Mr. Aditya Puri , 59 Managing Director, Director, Member of Investors Grievance (Share) Committee, Member of Fraud Monitoring Committee, Member of Premises

Committee, Member of Credit Approval Committee and Member of Risk Monitoring Committee Mr. Harish Engineer,60 Head of Wholesale Banking, Exec. Director and Member of Customer Service Committee Mr. Paresh Sukthankar,46 Head of Credit, Market Risk & Investor Relations, Exec. Director and Member of Risk Monitoring Committee Mr. Deepak S. Parikh,64 Exec. Chairman Mr. Debajeet Das, VP, Treasury March 2006 March 2007 March 2008 Citied 228 316 327 Branches 535 684 761 ATMs 1323 1605 1977 13

As of March 31, 2008, the Banks distribution network was at 761 Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31, 2007. Against the regulatory approvals for new branches in hand, the Bank expects to further expand the branch network by around 150 branches by June 30, 2008. During the year, the Bank stepped up retail customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million. Whilst credit growth in the banking system slowed down to about 22% for the year ended 2007-08, the Banks net advances grew by 35.1% with retail advances growing by 38.6% and wholesale advances growing by 30%, implying a higher market share in both segments. The transactional banking business also registered healthy growth With cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year. 14

Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer assets. The Banks provisioning policies for specific loan loss provisions remained higher than regulatory requirements. TECHNOLOGY USED IN HDFC BANK In the era of globalization each and every sector faced the stiff competition from their rivals. And world also converted into the flat from the globe. After the policy of liberalization and RBI initiatives to take the step for the private sector banks, more and more changes are taking the part into it. And there are create competition between the private sector banks and public sector bank. 15

Private sector banks are today used the latest technology for the different transaction of day to day banking life. As we know that Information Technology plays the vital role in the each and every industries and gives the optimum return from the limited resources. Banks are service industries and today IT gives the innovative Technology application to Banking industries. HDFC BANK is the leader in the industries and today IT and HDFC BANK together combined they reached the sky. New technology changed the mind of the customers and changed the queue concept from the history banking transaction. Today there are different channels are available for the banking transactions. We can see that the how technology gives the best results in the below diagram. There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%). These type of technology gives the freedom to retail customers. Centralized Processing Units Derived Economies of Scale Electronic Straight Through Processing Reduced Transaction Cost16

Data Warehousing , CRM Improve cost efficiency, Cross sell Innovative Technology Application Provide new or superior products HDFC BANK is the very consistent player in the New private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior service. 2001 Branches 43 % ATM 40%

Phone Bankin g 14% Internet 2% Mobile 1% 17

2005 Branches 17 % ATM 45% Phone Bankin g 12% Internet 25% Mobile 1%

( % customer initiated Transaction by Channel ) HDFC BANK PRODUCT AND CUSTOMER SEGMENTS PERSONAL BANKING Loan Product Deposit Product Investment & Insurance Auto Loan Loan Against Security Saving a/c Current a/c Fixed deposit Mutual Fund Bonds Knowledge Centre 18

Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Demat a/c Safe Deposit Lockers Insurance General and Health

Insurance Equity and Derivatives Mudra Gold Bar Cards Payment Services Access To Bank Credit Card Debit Card Prepaid Card -------------------------------Forex Services -------------------------------Product & Services Trade Services Forex service Branch Locater RBI Guidelines NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax

NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch Network19

WHOLESALE BANKING Corporate Small and Medium Enterprises Financial Institutions and Trusts

Funded Services Non Funded Services Value Added Services Internet Banking Funded Services Non Funded Services Specialized Services Value added services Internet Banking BANKS Clearing SubMembership RTGS submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection

Financial Institutions Mutual Funds Stock Brokers Insurance Companies 20

Commodities Business Trusts BUSINESS MIX

Total Deposits Gross Advances Net Revenue Retail Wholesale HDFC Bank is a consistent player in the private sector bank and have a well balanced product and business mix in the Indian as well as overseas markets. 21

Customer segments (retail & wholesale) account for 84% of Net revenues ( FY 2008)

Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments. . NRI SERVICES Accounts & Deposits Remittances Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians North America UK Europe South East Asia Middle East Africa Others Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs Investment & Insurances Loans Mutual Funds Insurance Home Loans Loans Against Securities 22

Private Banking Portfolio Investment Scheme Loans Against Deposits Gold Credit Card Payment Services Access To Bank NetSafe BillPay InstaPay DirectPay Visa Money Online Donation

NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network BUSINESS STRETEGY HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional 23 integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank. HDFC BANK business strategy emphasizes the following : Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector.

24

Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility. INSIDE HDFC BANK FIVE S , PART OF KAIZEN WORK PLACE TRANSFORMATION Focus on effective work place organization Believe in Small changes lead to large improvement Every successful organization have their own strategy to win the race in the competitive market. They use some technique and methodology for smooth running of business. HDFC BANK also 25

aquired the Japanese technique for smooth running of work and effective work place organization. Five S Part ofK aizen is the technique which is used in the bank For easy and systematic work place and eliminating unnecessary things from the work place. BENEFIT OF FIVE S It can be started immediately. Every one has to participate. Five S is an entirely people driven initiatives. Brings in concept of ownership. All wastage are made visible. FIVE S Means :S-1 SORT SEIRI S-2 SYSTEMATIZE SEITON S-3 SPIC-N-SPAN

SEIRO S-4 STANDARDIZE SEIKETSU S-5 SUSTAIN SHITSUKE (1) SORT :It focus on eliminating unnecessary items from the work place. It is excellent way to free up valuable floor space. 26

It segregate items as per require and wanted. (2) SYSTEMATIZE :Systematize is focus on efficient and effective Storage method. That means it identify, organize and arrange retrieval. It largely focus on good labeling and identification practices. Objective :- A place for everything and everything in its place. (3) SPIC- n - SPAN :Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of ownership. (4)ST ANDERDIZ E :It focus on simplification and standardization. It involve standard rules and policies. It establish checklist to facilitates autonomous maintenance of workplace. It assign responsibility for doing various jobs and decide on Five S frequency. 27

Frequently Required Less Frequently Required Remove everything from workplace Junk Wanted but not Required Junk

(5)SUST AIN: It focuses on defining a new status and standard of organized work place. Sustain means regular training to maintain standards developed under S-4. It brings in self- discipline and commitment towards workplace organization. LABELLING ON FILE FILE NUMBER SUBJECT FROM DATE TO DATE OWNER BOX LABEL For Example 1/3/A /6 28

1 Work Station (1) 3 Drawer (3) A - Shelf (A) 6 File Number ( 6) COLOUR CODING OF FILES DEPARTMENT Welcome Desk Personal Banker Teller Relationship Manager Branch Manager Demat Others 29

In the HDFC BANK each department has their different color coding apply on the different file. Due to this everyone aware about their particular color file which is coding on it and they save their valuable time. It is a part of Kaizen and also included in the system of the Five S. Logic behind it that , the color coding are always differentiate the things from the similar one. HUMAN RESOURCES The Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership 30

of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees. RUPEE EARNED - RUPEE SPENT It is more important for every organization to know about from where and where to spent money. And balanced between these two things rupee earned and rupee spent are required for smooth running of business and financial soundness. This type of watch can control and eliminate the unnecessary spending of business. In this diagram it include both things from where Bank earned Rupee and where to

31

spent. HDFC BANK earned from the Interest from Advances 51.14 % , Interest from Investment 27.12 %, bank earned commission exchange and brokerage of 15.25 %. These are the major earning sources of the bank. Bank also earned from the Forex and Derivatives and some other Interest Income. Bank spent 39.75 % on Interest Expense, 30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on Investment , Tax. As we discuss above that balancing is must between these two for every organization especially in the era of globalization where there 32

are stiff competition among various market players. RECENT DEVELOPMENT The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained. 33

The combined entity would have a nationwide network of 1167 branches; a strong deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size of the combined entity would be over Rs.1,63,000 crores. Merger with Centurion Bank of Punjab Limited On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab Limited. This is subject to receipt of 34

Approvals from the Reserve Bank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores. Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking

and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury 35 operations, its three principal business segments. The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality. As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the corresponding year ended March 31, 2007. As of March 31, 2008 total deposits were INR 1007.69 billion, (Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian and international Publications have recognized the bank for its performance and quality. 36

Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds, life and general insurance and has established a leadership 'position'. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition37 to its existing dominance in the northern part of the country.

Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg Stock Exchange. 38

ACHIEVEMENT IN 2007 Business TodayMonitor Group survey One of India's "Most Innovative Companies" Financial Express- Ernst & Young Award Best Bank Award in the Private Sector category Global HR Excellence Awards - Asia Pacific HRM Congress: 'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more Business Today 'Best Bank' Award Dun & Bradstreet American Express Corporate

Best Bank Award 2007'Corporate Best Bank' Award The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007 'Best Corporate Social Responsibility Practice' Award Outlook Money & NDTV Profit Best Bank Award in the Private sector category. 39

The Asian Banker Excellence in Retail Financial Services Awards

Best Retail Bank in India Asian Banker HDFC BANK Managing Director Aditya Puri wins the Leadership Achievement Award for India 40

SWOT ANALYSIS STRENGTH

Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field. WEAKNESSES Some gaps in range for certain sectors. Customer service staff need training.

 Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff 41

Opportunities Profit margins will be good. Could extend to overseas broadly.

New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services. Threats Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas could constrain investment.

High volume/low cost market is intensely competitive. 42

INTRODUCTION OF THE STUDY Satisfaction is an important goal for organizations to reach as it has been shown that profitability, productivity, employee retention, and customer satisfaction are linked to employee satisfaction. JOB SATISFACTION The term Job satisfaction refers to an individual's general attitude towards his or her job. A person with a high level of job satisfaction holds positive attitude towards the job, while a person who is dissatisfied with his or her job holds negative attitude about the job.In simple words job satisfaction is:Job Satisfaction describes how content an individual is with his or her job. There are a variety of factors that can influence a person's level of Job satisfaction; some of these factors are: Include the level of pay and benefits, The perceived fairness of the promotion system within a company, The level of pay and benefits, Leadership and social relationships, The job itself. Why to study about employee satisfaction? In my point of view, study of "Employee satisfaction" helps the company to maintain a

standards & increase productivity by motivating the employees. this study tells us how 43 much the employees are capable & their interest at wok place? what are the things still to be satisfy to the employees. although "human resource" are the most important resources for any organization, so to study on employees satisfaction helps to know the working conditions & what are the things that affects them not to work properly. always majority of done by the machines/equipments but without any manual moments nothing can be done. so to study on employee satisfaction is necessary. THE STATE OF EMPLOYEE SATISFACTION Although committed and loyal employees are the most influential factor to becoming an employer of choice, it's no surprise that companies and organizations face significant challenges in developing energized and engaged workforces. However, there is plenty of research to show that increased employee commitment and trust in leadership can positively impact the company's bottom line. In fact, the true potential of an organization can only be realized when the productivity level of all individuals and teams are fully aligned, committed and energized to successfully accomplish the goals of the organization. As a result, the goal of every company should be to improve the desire of employees to stay in the relationship they have with the company. When companies understand and manage employee loyalty - rather than retention specifically - they can reap benefits on both sides of the balance sheet i.e., revenues and costs. On the revenue side of the balance sheet, loyal and committed employees are more likely to go "above and beyond" to meet customer needs and are highly motivated to work to the best of their ability. Both of these traits are crucial for continued customer commitment and ongoing revenue and growth for the company. 44 On the cost side, loyal employees stay longer, resist competitive job offers, do not actively look for other employment and recommend the company to others as a good place to work. These four behaviors positively influence the cost side of the balance sheet because they are leading indicators of employee retention. The longer companies keep their employees, the longer they can avoid having to pay to replace them. In other words, rather than focusing only on retention (that is, trying to retain employees who have already decided to leave), organizations should proactively recognize the benefits of understanding, managing and improving employee loyalty. The most successful organizations are those that can adapt their

organizational behavior to the realities of the current work environment where success is dependent upon innovation, creativity and flexibility. Additionally, the dynamics of the work environment have to reflect a very diverse population comprised of individuals whose motivations, beliefs and value structures differ vastly from the past and from each another. Arguably, the most valuable, but also volatile, corporate asset is a stable workforce of competent, dedicated employees, since such an employee base gives companies a powerful advantage; depth of knowledge and organizational strength. One of the key steps to understanding and improving employee loyalty is by acknowledging the importance of the following factors in building loyalty and satisfaction: Broadly-defined responsibilities rather than narrowly-defined job functions Effective and regular performance evaluations, both formally and informally A corporate emphasis on employee learning, development and growth Wide-ranging employee participation in the organization as a whole Typically, a combination of factors influences employees' decisions to stay at their current job. Contributing factors include satisfying work, a sense of job security, clear opportunities for advancement, a compelling corporate mission combined with the ability to contribute to the organization's success, and a feeling that their skills are being 45

effectively used and challenged. Specifically, employees who enjoy their work, identify themselves with their employer and perceive that the company is flexible regarding work and family issues also intend to stay with the organization. Today, employee loyalty needs to be earned, rather than assumed, and must be specific, rather than general - employees are looking at their employment as a means of achieving personal goals rather than simply being the "good corporate soldier" of the past. This means that companies need to express and act on a commitment to develop employees' career objectives by introducing initiatives that make employees believe that their current job is the best path to achieving their career goals.

In particular, consider the following elements of effective strategies designed to build loyalty and retain key employees: Include opportunities for personal growth and invest heavily in the professional development of the best people in the organization. Provide employees with well-defined career paths (including a succession plan), mentors and tuition reimbursement for job-related education. Train employees, even if it makes them more attractive to the competition. Without seeing an opportunity on the horizon, few high potential employees will stay with a company and allow themselves to grow stagnant. Acknowledge non-work priorities by recognizing and responding to employees' needs for greater balance in their lives, since employees will develop loyalty for organizations that respect them as individuals, not just as workers. OBJECTIVES OF THE STUDY 1. To check the level of employee satisfaction among job work assignees. 46 2. 3. 4. 5. 6. To To To To To analyze the work related stress. study the attitude of employees toward their work and job security. find motivational factors of employees. find out how much employees are participation in dicision-making. find out how much employees are satisfied with their salary level.

Another approach to the issue of loyalty is to consider the value of the five "I's": Interesting work. No one wants to do the same boring job over and over, day after day. Although any job will require some repetitive tasks, all jobs should include at least some parts that are of high interest to employees. 47

Information. Information is power and employees want to have the information they need to know to do their jobs better and more effectively. And, more than ever, employees want to know how they are doing in their jobs and how the company is performing overall. It is vitally important to open the channels of communication in an organization to allow employees to be informed, ask questions, and share information and to inspire them to share the vision of the company. Involvement. Managers today are faced with an incredible number of opportunities and problems and, as the speed of business continues to increase, the amount of time that they have to make decisions continues to decrease. Involving employees in decision-making, especially when the decisions affect them directly, is both respectful and practical. Not only do those closest to the problem typically have the best insight as to what to do, involving them in decisionmaking will increase their commitment and improve the success of implementing new ideas or change. Similarly, management needs to follow through on promises and live the values they preach. Independence. Few employees want their every action to be closely monitored. Most employees appreciate having the flexibility to do their jobs as they see fit. Giving employees latitude increases the chance that they will perform as desired, as well as bringing additional initiative, ideas, and energy to their jobs. Employees also need to be encouraged to achieve their best potential. THEORIES OF EMPLOYEE SATISFACTION ARE: 1) NEED FULFILLMENT THEORY: 48

According to this theory a person is satisfied when he gets training from his Job what he wants. The more he wants something or the more important it is to him, the more satisfied he is when he received it. In other words, Job Satisfaction will vary directly with the extend to which those needs of an individual which can be satisfied are actually satisfied. Vroom views satisfaction in terms of the positively valued outcomes that a job provides to a person. Thus, job satisfaction is positively related to the degree to which ones needs are fulfilled. The fulfillment theory suffers from a major drawback. Satisfaction is a function of not only what a person receives but what he feels he should receive. 2) EQUITY THEORY:

Under this theory, it is believed that a persons job satisfaction depends upon his perceived equity as determined by his input- output balance in comparison with the input- output balance of others. Every individual compares his rewards with those of a reference group. If he feels his rewards are equitable in comparison with others doing similar work, he feels satisfied. Job Satisfaction is thus a function of the degree to which job characteristics meet the desires of the reference group. For example, one study of the effects of community features on job satisfaction revealed that workers living in a well to a neighbourhood felt less satisfied than those living in poor neighbourhood. 3) TWO FACTOR THEORY: Frederick Herzberg and his colleagues developed the Two factor theory satisfaction. According to this theory satisfaction and dissatisfaction are interdependent of each other and exist on a separate continuum. One set of factors known as hygiene factors 49

(Company policy, administration, supervision, pay, working conditions and interpersonal relations) act as dissatisfiers. Their absence cause dissatisfaction but their present does not result in positive satisfaction. The other set of factors known as satisfiers (achievements, advancement, recognition, work itself and responsibility) lead to satisfaction. Several studies designed to test the two factor theory provide little support to this theory. The same factor may serve as a satisfier for one but a dissatisfier for another. It appears from this theory that a person can be satisfied and dissatisfied at the same time. 4)DISCREPANCY THEORY: According to this theory job satisfaction depends upon what a person actually receives from his job and what he expects to receive. When the reward actually received are less than the expected rewards it causes dissatisfaction. In the words of Locke, Job Satisfaction and dissatisfaction are function of perceived relationship between what one wants from ones job and what one perceive it is actually offering. In other words, satisfaction is the difference between what one actually received and what he feels he should receive. This theory fails to reveal whether over-satisfaction is or is not a dimension of dissatisfaction and if so , how does it dissatisfaction arising out of the situation when received outcomes are less than the outcomes one feels he should receive. 5) EQUITY DISCREPANCY THEORY: This is a combination of equity and discrepancy theories. Lawlers hs adopted the difference approach of discrepancy theory rather than the ratio approach of

equity theory. From equity theory the concept of comparision has been selected to serve as an 50 A Project Report on Employees Satisfaction Regarding HDFC Bank Download this Document for FreePrintMobileCollectionsReport Document Report this document? Please tell us reason(s) for reporting this document Top of Form
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Neeraj Vishwakarmaleft a comment plz give me projectin employee satisfaction in private bank like sbi 05 / 17 / 2011 Reply Report

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