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1 HR PRACTICES OF NON-BANKING FINANCIAL COMPANIES AND THEIR EFFECT ON EMPLOYEE JOB SATISFACTION WITH REFERENCE TO GOLD LOAN NBFC’s Submitted in Partial Fulfilment of the Requirement for the Award of the Degree of DOCTOR OF PHILOSOPHY IN BUSINESS MANAGEMENT BY RENJITH P. R. (ID. No.: 14PHBM107) FACULTY OF BUSINESS STUDIES JOSEPH SCHOOL OF BUSINESS STUDIES SAM HIGGINBOTTOM UNIVERSITY OF AGRICULTURE, TECHNOLOGY AND SCIENCES NAINI, ALLAHABAD-211007

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Page 1: HR PRACTICES OF NON-BANKING FINANCIAL COMPANIES AND … · Non-Banking Finance Companies are essential to the Indian Financial System because of the significant roles they play in

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HR PRACTICES OF NON-BANKING FINANCIAL COMPANIES

AND THEIR EFFECT ON EMPLOYEE JOB SATISFACTION

WITH REFERENCE TO GOLD LOAN NBFC’s

Submitted in Partial Fulfilment of the Requirement for

the Award of the Degree of

DOCTOR OF PHILOSOPHY

IN

BUSINESS MANAGEMENT

BY

RENJITH P. R.

(ID. No.: 14PHBM107)

FACULTY OF BUSINESS STUDIES

JOSEPH SCHOOL OF BUSINESS STUDIES

SAM HIGGINBOTTOM UNIVERSITY OF AGRICULTURE,

TECHNOLOGY AND SCIENCES

NAINI, ALLAHABAD-211007

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DECLARATION

I do hereby declare that this thesis entitled “HR PRACTICES OF NON-BANKING

FINANCIAL COMPANIES AND THEIR EFFECT ON EMPLOYEE JOB

SATISFACTION WITH REFERENCE TO GOLD LOAN NBFC’s” submitted to Sam

Higginbottom University of Agriculture, Technology and Sciences, Naini, Allahabad in

partial fulfillment of the requirement for the award of the degree of Doctor of Philosophy in

Business Management is my original work and has not been previously submitted for the award

of any other degree or diploma of this or any other university/institution.

Date:

Place: Allahabad RENJITH P. R.

(ID. No.: 14PHBM107)

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CERTIFICATE OF ORIGINAL WORK

This is to certify that the thesis entitled “HR PRACTICES OF NON-BANKING FINANCIAL

COMPANIES AND THEIR EFFECT ON EMPLOYEE JOB SATISFACTION WITH

REFERENCE TO GOLD LOAN NBFC’s” being submitted by Mr. Renjith P. R., I.D. No.

14PHBM107, to Sam Higginbottom University of Agriculture, Technology and Sciences,

Naini, Allahabad in partial fulfillment of the requirement for the award of the degree of Doctor

of Philosophy in Business Management is a record of Bonafide research work carried out by

him under my supervision and guidance. No part of this work has been submitted for the award

of any other degree or diploma of this or any other university/institution. The thesis is worthy of

consideration and it is therefore being forwarded and recommended for acceptance.

Date: ____________________

Place: Allahabad Dr. Devaraj Badugu

(Advisor)

Associate Professor,

Joseph School of Business Studies,

SHUATS, Allahabad.

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DEDICATION

This work is dedicated to my family members and AHTIMS

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ACKNOWLEDGEMENT

First and foremost I thank the Almighty God, the Omnipotent and the Most Merciful, who

enabled me to learn, to understand the complexities and to complete this thesis.

I am highly grateful to Most Rev. (Prof.) Dr. Rajendra B. Lal, Honorable Vice

Chancellor for allowing me to take up this work.

I am thankful to Late (Prof.) Dr. Mosood Naseer for his worthy guidance, moral support,

suggestions and affection bestowed upon me during the course of study. I am grateful to, Dean,

Joseph School of Business Studies, for facilitating of the completion of my work in various

aspects.

My sincere thanks to the committee member Prof (Dr) Newman Fernandes, Director, , Head &

Dean JSBS, SHUATS for whose direction and guidance greatly facilitated this process through

his valuable suggestions and feedback.

I am very much obliged to all the faculty members of Joseph School of Business Studies for

their constant help. I must say that without their kind efforts, support and guidance it was

impossible to complete this job.

I owe deep gratitude to my benevolent supervisor, Dr. Devaraj Badugu, Associate Dean and Chief

Proctor, Joseph School of Business Studies. His keen interest, generous and expert guidance at

every step and continuous encouragement throughout my entire research work enabled me to

achieve my goals.

I am especially thankful to my family for providing me with every opportunity and encouraging

me to accomplish this job. I am also thankful to my parents and family members for their

prayers, loving behaviour and emotional support.

My special thanks go to the people who I came across while collecting information which have

been instrumental in the accomplishment of this thesis work. Last but not least my profound

gratitude is due to all the Faculty of Joseph School of Business Studies who provided me the

guidance during the course work.

Renjith P. R.

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ABSTRACT

Non-Banking Finance Companies are essential to the Indian Financial System because of the

significant roles they play in nation building and financial inclusion. They complement the role

of the banking sector in reaching out and extending credit facilities to the unbanked sections of

society. Respectively, they always consider their employees as the backbone of their Companies

and are aimed at providing employee satisfaction. However, developing an understanding of

employees is a tough task for the Human Resource Department subjecting most of the NBFCs to

higher attrition rates problems. Hence, this study has been undertaken among 450 respondents to

identify and understand the human resource practices followed by the NBFC’s and also find out

the significant relationships between their various human resource practices and job satisfaction.

Using stratified random sampling method, questionnaires were administered to collect data from

450 employees of leading Gold Loan NBFC’s in Kerala State for this descriptive study. Research

hypotheses were formulated and tested using correlation analyses. The results reveal that

performance appraisal, motivation, employee engagement, recruitment and selection, training

and development are positively related to job satisfaction. Finally, it is recommended that these

human resource practices should be viewed as strategic functions of any organization.

Keywords: Non-Banking Finance Companies, Performance Appraisal, Motivation, Employee

Engagement, Recruitment and Selection, Training and Development and Job Satisfaction.

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TABLE OF CONTENTS

Title Page No.

Chapters of the Thesis

Introduction 01

Review of literature 61

Materials and Methods 89

Results and Discussion 100

Summary and Conclusion 197

CHAPTER I INTRODUCTION

01.01 Introduction ……………………………………………………………………………...............................................1

01.02 Evolution of Regulation of NBFCs in India…………………............................................................1

01.03 NBFCs of India………………………………………………........................................................................2

01.04 Asset Liability composition Liabilities of the NBFC sector………..………………..........................…..3

01.05 Assets of the NBFC sector………………………………..................................................................….4

01.06 Role of NBFCs and Gold Loan NBFCs in financial Inclusion……………………….............................…5

01.07 Gold Loan Market in India………………………………………………………….............................................8

01.08 India Gold Finance Industry – An Overview…………………………………..............................……..…..8

01.09 Key Drivers of Gold Loan Market in India………………………………………….................................….10

01.10 Trends in Gold Loans Outstanding…………………………………………………..................................…..11

01.11 Market Size……………………………………………….………………………...........................................….....12

01.12 Glimpse of Human Resource at NBFCs……………………………….............................………..….….....13

01.13 Muthoot Finance Ltd……………………………………………………….......................................…..…………17

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01.14 Manappuram Finance Ltd……………………………………………………..….…....................................24

01.15 Muthoot Fincorp Ltd……………………………………………………………....…...................................…34

01.16 Why it is a setback for NBFCs..........................................................................................43

01.17 What’s in favour of Gold Loan NBFCs.............................................................................43

01.18 Policy Level Gaps...........................................................................................................44

01.19 Policy Level Gaps: NBFCs, Gold Loans And Financial Inclusion…………..……....................…..48

01.20 Policy Level Gap: Cap On The Loan To Value Ratio……………………….……….......................…..51

01.21 Human Resources…………………………………………………………….………....................................….55

01.22 Statement of Problem…………………………………………………….................................………........59

01.23 Objectives of the Study………………………………………………….................................……….....…..60

CHAPTER II REVIEW OF LITERATURE

02.01 Manpower Planning…………………….…………………………………………..…..63

02.02 Recruitment and Selection………………………………………………………..........65

02.03 Training and Development………………………………………………………..……67

02.04 Succession Planning…………………………………………………………….….…..70

02.05 Performance Appraisal…………………………………………………………..……..72

02.06 Employee Motivation……………………………………………………….…………73

02.07 Employee Engagement……………………………………………………………..….75

02.08 Employee Grievance Handling………………………………………………….…..…77

02.09 Company Vision and Mission……………………………………………………...…..79

02.10 Job Satisfaction……………………………………………………………….……..…79

02.11 Employee Relations……………………………………………………………..……...81

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02.12 Employee Work Life Balances…………………………………………………..……..82

02.13 Employee Reward and Recognitions…………………………………………….….....84

CHAPTER III MATERIALS AND METHODS

03.01 Introduction……………………………………………………………………...…91

03.02 Pilot Study……………………………………………………………………….....91

03.03 Formulation of Research Design…………………………………………………...92

03.04 Research Design…………………………………………………………………....93

03.05 Type of Data…………………………………………………………………….….94

03.06 Data Collection Method……….…………………………………………………...94

03.07 Rating Scale………………………………………………………………………...95

03.08 Area of the Study……………………………………………………………….......96

03.09 Sampling Size………………………………………………………………….........96

03.10 Sampling Technique………………………………………………….………….......96

03.11 Statistical Tools Used……………………………………………………………….97

03.12 Objectives of the Study……………………………………………………………..98

03.14 Data Tabulation and Analysis…………………………………………………….…98

03.14 Hypothesized Model of Dependant and Independent Variable Used in this Study .99

CHAPTER IV RESULTS AND DISCUSSIONS

04.01 Data Analysis and Interpretation…………………………………………......… 101

04.03 Manpower Planning and Recruitment………………………………………………………..…….101

04.02 Method of Analysis………………………………………………………….…...101

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04.04 Training and Succession Planning…………………………………………………………….….113

04.05 Performance Management………………………………………………………………….…….123

04.06 Job Satisfaction and Employee Relations………………………………………………….…….129

04.07 Grievance handling and Communication………………………………………………..………..137

04.08 About the Company, Vision and Management……………………………………….……….…142

04.09 Job Satisfaction and Employee Relations……………………………………………………….154

04.10 Work life balance and employee Reward system…………………….…………….…174

04.11 Customer focus and Quality……………………………………………..…….181

CHAPTER V SUMMARY AND CONCLUSION

5.1 Findings ………………………………………………………………………………….198

5.2 Suggestion………………………………………………………………….…………….206

5.3 Conclusion………………………………………………………………….……………................................................211

5.4 Limitations and Future Areas of Research………………………………………................................…….…212

References…………………………………………………………………………………….213

Appendix……………………………………………………………………………………...221

Questionnaire……………………………………………………….…………………………221

Papers Published……………………………………………………………………………….239

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LIST OF TABLES

Table No. Title ( Page No.)

Tab.04.01 How to communicate to the HR when a position becomes vacant or

requirement of a new position? (P.101) Page.101

Tab.04.02 How the candidate comes to know about the position was vacant. Page.102

Tab.04.03 Employees opinion about effective source of vacancy notification page.103

Tab.04.04 Candidates under gone any written test and formal Interview at the time

of Recruitment Page.104

Tab.04.05 Company Recruitment process are based on competencies and

merit Page.105

Tab.04.05 Job Descriptions were communicated on or before Joining Page.106

Tab.04.06 Do you have the right (adequate) number of staff ( head count) in

your Branch /Department to run the day to day operations satisfactorily Page.107

Tab.04.07 Your Department /Branch has the right people in the right place

in terms of skill and business knowledge. Page.108

Tab.04.07 Are you satisfied with the length of time (lead time) it takes to fill

up the open positions in your Department/Branch Page.109

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Tab.04.08 The Recruitment procedures are clearly defined, Fair and

unbiased Page.110

Tab.04.09 Candidates from within the Organization are given appropriate

consideration Page.111

Tab.04.10 Selection criteria are specifically linked to core objectives of the

Organization and job requirements. Page.112

Tab.04.11 Do your Organization have a formal structured induction

programme for fresh recruits joining the organization as well as for internal

promotes? Page.113

Tab.04.12 Your organization is committed to improving the skill level of

current employees to meet the job requirements Page.114

Tab.04.13 Training Programmes are structured to meet the job requirements

of employees. Page.115

Tab.04.14 Training need analysis happens at the time of your Performance

Appraisal Page.116

Tab.04.15 How often employees are getting refresher training programmes

to meet the challenges of job requirements Page.117

Tab.04.16 Your organization is using online training programmes for the

employee’s knowledge enhancement. Page.118

Tab.04.17 In my organization, Employee Development is seen as a key to

success rather than a cost Page.119

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Tab.04.18 The training I receive reinforces and enhances my customer

focus and service excellence skills Page.120

Tab.04.19 Scope for career paths or chances of promotions are existing for

someone like you in this company Page.121

Tab.04.20 In your organization, career moves are based on competency and

merit and handled fairly, equitable and without any discrimination Page.122

Tab.04.21 Your organization conducts regular and timely performance appraisals

and feedback sessions. Page.123

Tab.04.21 Your organization Sets and clearly communicates expectations,

performance goals, and measurements at the beginning of the Fiscal year? Page.124

Tab.04.22Whether the Performance rating is used for Promotions, training,

placement etc. Page.125

Tab.04.23 Does the present Appraisal system adequately serve the purpose

of Measuring the Performance and Initiating developmental measures? Page.126

Tab.04.24 Your organization has clear guidelines on Performance

Improvement Plan (PIP)and Training after the appraisal Process has been

completed Page.127

Tab.04.25 Your organization defines roles, Page.128

Tab.04.26 In your Branch/Office, you participates in deciding how the work

gets done. Page.129

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Tab.04.27 Your co-workers and you work well with superiors together to

accomplish our organization's goals. Page.130

Tab.04.28 Your department staff meetings generally encourage open and

honest participation and also used as a forum to resolve conflicts honestly,

effectively and quickly, whenever necessitated Page.131

Tab.04.29 You are adequately recognized by your superiors for your good

work Page.132

Tab.04.30 The amount of pay you receive for your job is at par compared to

others doing similar work in our industry. Page.133

Tab.04.31 You feel, you are adequately paid compared to your colleagues in

other companies. Page.134

Tab.04.32 Your organization is organizing employee engagement activates

for boosting the employee morale and sense of belongingness. Page.135

Tab.04.33 You feel and experience a better job security in your company? Page.136

Tab.04.34 The Companies does a good job by communicating about

changes or decisions that affect employees. Page.137

Tab.04.35 The grievance process used at the Company is fair and equitable

to reduce and resolve employee grievances Page.138

Tab.04.36 You feel free to express your opinions without worrying about negative

actions/responses Page.139

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Tab.04.37 Management communicates a consistent and clear strategic

direction Page.140

Tab.04.38 How would you rate the organization's “communications tools”in

providing you with an effective means of communication? Page.141

Tab.04.39 My organization encourages employees to work to the best of

their abilities Page.142

Tab.04.40 I am held accountable for achieving specific results. Page.143

Tab.04.41 We work to anticipate problems and develop appropriate solutions Page.144

Tab.04.42 How would you rate your authority to maintain quality of

products and services in my work area? Page.145

Tab.04.43 My organization treats employees with fairness and respect Page.146

Tab.04.44 How would you rate the company on Work atmosphere, Working

hours, use of Information Technology etc Page.147

Tab.04.45 Our Management is able to communicate a shared vision of the

company to employees at all levels. Page.148

Tab.04.46 The Mission Statement and values of our Company is supported

by Managers and Senior Leadership. Page.149

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Tab.04.47 Goals and objectives are integrated and aligned with Company

Mission Statement and values Page.150

Tab.04.48 My Manager shows fairness and respect in their interactions

with employees. Page.151

Tab.04.49 My Management team works together to create a sense of

teamwork and company spirit Page.152

Tab.04.50 My organizational culture enhances employee commitment and

Team work Page.153

Tab.04.51 I feel that there is a spirit of “we’re all in this together” in the

organization. Page.154

Tab.04.52 I would recommend my Company as a great place to work. Page.155

Tab.04.53 I enjoy participating in Company’ sponsored events and social

activities. Page.156

Tab.04.54 I am satisfied with the organizational structure, Polices and procedures Page.157

Tab.04.55 Our organization has clear policy on employee transfer and job rotation. Page.158

Tab.04.56 Employees and immediate supervisors resolve issues quickly without

resorting to anger, intimidation, or retribution Page.159

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Tab.04.57 My immediate supervisor values my contributions and encourages

ideas about how to improve work in my department. Page.160

Tab.04.58 My Superior show fairness and respect in their interactions with

employees Page.161

Tab.04.59 Conflicts are resolved in a positive and constructive manner at the

work place itself Page.162

Tab.04.60 How would you rate your satisfaction with the opportunity to use

your skills and abilities in your job? Page.163

Tab.04.61How would you rate your sense of accomplishment in your job? Page.164

Tab.04.62 How would you rate your overall job satisfaction in your present

position? Page.165

Tab.04.63 How would you rate the morale in your team? Page.166

Tab.04.64 I feel a strong sense of belongingness to Company Page.167

Tab.04.65 I would recommend others to join and work in our Organization Page.168

Tab.04.66 I am satisfied with my compensation and benefits, which I am

receiving at present Page.169

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Tab.04.67 I am satisfied with my compensation and benefits when

compared with Industry standards Page.170

Tab.04.68 I am satisfied with my organizations leave Policy Page.171

Tab.04.69 My organization conducts structured exit Interview and collect

constructive feedback. Page.172

Tab.04.70 Exit Interview feedbacks are used for making retention strategies Page.173

Tab.04.71 I receive support in meeting family and personal obligations Page.174

Tab.04.72 I believe that Company is supportive of my life outside of work,

wherever necessary. Page.175

Tab.04.73 My work arrangements allow me to balance my personal life with

my work Page.176

Tab.04.74 I am able to balance the demands of my time between my work

life and my personal life Page.177

Tab.04.75 I would like to participate in a recreational league outside of work

with my co-workers Page.178

Tab.04.76 Organization recognize the employees by providing monetary and

non-monetary rewards to excellent performers Page.179

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Tab.04.77 The Company offers rewards based on contribution and results,

rather than job title and service Page.180

Tab.04.78 Our employees are committed to improving quality of services Page.181

Tab.04.79 Our organizational culture enhances employee commitment Page.182

Tab.04.80 Our organization has clearly identified the customers who receive

our Service. Page.183

Tab.04.81 Our Company's current activities reflect a strong focus on the

customers. Page.184

Tab.04.82 In my job I have the freedom to understand and meet customer

needs. Page.185

Tab.04.83 The internal practices of our Company adequately encourage me

to deliver customer focused services at the expected level Page.186

Tab.04.84 Work environment in my area allow me to be highly productive. Page.187

Tab.04.85 At the Company, my suggestions /Customer suggestions are given

due consideration Page.188

Table 04 86 05.1 H1: Manpower Planning and Recruitment Practices in the

organization are significantly related to Employee Satisfaction Page.189

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Table 04 87 05.2 H2: Training and Succession Planning Practices in the

organization are significantly related to Employee Satisfaction. Page.190

Table 04 88 05.3 H3: Performance Management Practices in the organization

are significantly related to Employee Satisfaction. Page.191

Table 04 89 05.4 H4: Employee Motivation and Employee Engagement

Practices in the organization are significantly related to Employee

Satisfaction Page.192

Table 04 90 Grievance Handling and Communication Practices in the

organization are significantly related to Employee Satisfaction Page.193

Table 04 91 Employee Reward Systems in the organization are significantly

related to Employee Satisfaction Page.194

Table 04 92 The Human Resource Practices are significantly related to the

overall Performance of the Company Page.195

Table 04 93 The Human Resource Practices in NBFC are significantly

related to Work Life Page.196

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LIST OF FIGURES

Figure No. Title Page No.

(Fig-04.01). How to communicate to the HR when a position becomes vacant or

requirement of a new position? Page.101

(Fig-04.02). How the candidate comes to know about the position was vacant. Page.102

(Fig-04.03). Employees opinion about effective source of vacancy notification Page.103

(Fig-04.05). Company Recruitment process are based on competencies and

merit Page.104

(Fig-04.05). Job Descriptions were communicated on or before Joining Page.105

(Fig- 04.06). Do you have the right (adequate) number of staff ( head count)

in your Branch /Department to run the day to day operations satisfactorily Page.106

(Fig- 04.07). Are you satisfied with the length of time (lead time) it takes to

fill up the open positions in your Department/Branch Page.107

(Fig- 04.08). Your Department /Branch has the right people in the right

place in terms of skill and business knowledge. Page.108

(Fig- 04.09). Candidates from within the Organization are given

appropriate consideration Page.109

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(Fig- 04.10). Selection criteria are specifically linked to core objectives of

the Organization and job requirements. Page.110

(Fig- 04.11). Do your Organization have a formal structured induction

programme for fresh recruits joining the organization as well as for internal

promotes? Page.111

(Fig- 04.12). Your organization is committed to improving the skill level of

current employees to meet the job requirements Page.112

(Fig- 04.13). Training Programmes are structured to meet the job

requirements of employees. Page.113

(Fig- 04.14). Training need analysis happens at the time of your

Performance Appraisal Page.114

(Fig- 04.15). How often employees are getting refresher training

programmes to meet the challenges of job requirements Page.115

(Fig- 04.16). Your organization is using online training programmes for the

employee’s knowledge enhancement. Page.116

(Fig- 04.17). In my organization, Employee Development is seen as a key

to success rather than a cost Page.117

(Fig- 04.18). The training I receive reinforces and enhances my customer

focus and service excellence skills Page.118

(Fig- 04.19). Scope for career paths or chances of promotions are existing

for someone like you in this company Page.119

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(Fig- 04.20). In your organization, career moves are based on competency

and merit and handled fairly, equitable and without any discrimination Page.120

(Fig- 04.20). Your organization conducts regular and timely performance

appraisals and feedback sessions. Page.121

(Fig- 04.21). Your organization Sets and clearly communicates expectations,

performance goals, and measurements at the beginning of the Fiscal year? Page.122

(Fig- 04.22). Whether the Performance rating is used for Promotions,

training, placement etc. Page.123

(Fig- 04.23). Does the present Appraisal system adequately serve the

purpose of Measuring the Performance and Initiating developmental

measures? Page.124

(Fig- 04.24). Your organization has clear guidelines on Performance

Improvement Plan (PIP)and Training after the appraisal Process has been

completed Page.125

(Fig- 04.25). Your organization defines roles, obligations, expectations

and responsibilities of employees aligned with Vision and Mission. Page.126

(Fig- 04.26). In your Branch/Office, you participates in deciding how the

work gets done. Page.127

(Fig- 04.27). Your co-workers and you work well with superiors together

to accomplish our organization's goals. Page.128

(Fig- 04.28). Your department staff meetings generally encourage open and

honest participation and also used as a forum to resolve conflicts honestly,

effectively and quickly, whenever necessitated Page.129

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(Fig- 04.29). You are adequately recognized by your superiors for your

good work Page.130

(Fig- 04.30). The amount of pay you receive for your job is at par

compared to others doing similar work in our industry. Page.131

(Fig- 04.31). You feel, you are adequately paid compared to your

colleagues in other companies. Page.132

(Fig- 04.32). Your organization is organizing employee engagement

activates for boosting the employee morale and sense of belongingness. Page.133

(Fig- 04.33). You feel and experience a better job security in your

company? Page.134

(Fig- 04.34). The Companies does a good job by communicating about

changes or decisions that affect employees. Page.135

(Fig- 04.35). The grievance process used at the Company is fair and

equitable to reduce and resolve employee grievances Page.136

(Fig- 04.36). You feel free to express your opinions without worrying about

negative actions/responses Page.137

(Fig- 04.37). Management communicates a consistent and clear strategic

direction Page.138

(Fig- 04.38). How would you rate the organization's “communications

tools”in providing you with an effective means of communication? Page.139

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(Fig- 04.39). My organization encourages employees to work to the best of

their abilities Page.140

(Fig- 04.40). I am held accountable for achieving specific results. Page.141

(Fig- 04.41). We work to anticipate problems and develop appropriate

solutions. Page.142

(Fig- 04.42). How would you rate your authority to maintain quality of

products and services in my work area? Page.143

(Fig- 04.43). My organization treats employees with fairness and respect Page.144

(Fig- 04.44). How would you rate the company on Work atmosphere,

Working hours, use of Information Technology etc Page.145

(Fig- 04.45). Our Management is able to communicate a shared vision of

the company to employees at all levels. Page.146

(Fig- 04.46). The Mission Statement and values of our Company is

supported by Managers and Senior Leadership Page.147

(Fig- 04.47). Goals and objectives are integrated and aligned with

Company Mission Statement and values Page.148

(Fig- 04.48). My Manager shows fairness and respect in their interactions

with employees Page.149

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(Fig- 04.49). My Management team works together to create a sense of

teamwork and company spirit Page.150

(Fig- 04.50). My organizational culture enhances employee commitment

and Team work Page.151

(Fig- 04.51). I feel that there is a spirit of “we’re all in this together” in the

organization. Page.152

(Fig- 04.52). I would recommend my Company as a great place to work. Page.153

(Fig- 04.53). I enjoy participating in Company’ sponsored events and

social activities. Page.154

(Fig- 04.54). I am satisfied with the organizational structure, Polices and

procedures Page.155

(Fig- 04.55). Our organization has clear policy on employee transfer and job

rotation. Page.156

(Fig- 04.56). Employees and immediate supervisors resolve issues quickly

without resorting to anger, intimidation, or retribution Page.157

(Fig- 04.57). My immediate supervisor values my contributions and

encourages ideas about how to improve work in my department. Page.158

(Fig- 04.58). My Superior show fairness and respect in their interactions

with employees Page.159

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(Fig- 04.59). Conflicts are resolved in a positive and constructive manner

at the work place itself Page.160

(Fig- 04.60). How would you rate your satisfaction with the opportunity to

use your skills and abilities in your job? Page.161

(Fig- 04.61). How would you rate your sense of accomplishment in your

job? Page.162

(Fig- 04.62). How would you rate your overall job satisfaction in your

present position? Page.163

(Fig- 04.63). How would you rate the morale in your team? Page.164

(Fig- 04.64). I feel a strong sense of belongingness to Company Page.165

(Fig- 04.65). I would recommend others to join and work in our

Organization Page.166

(Fig- 04.66). I am satisfied with my compensation and benefits, which I am

receiving at present Page.167

(Fig- 04.67) I am satisfied with my compensation and benefits when

compared with Industry standards Page.168

(Fig- 04.68) I am satisfied with my organizations leave Policy Page.169

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(Fig- 04.69) 69 My organization conducts structured exit Interview and

collect constructive feedback. Page.170

(Fig- 04.70) Exit Interview feedbacks are used for making retention

strategies Page.171

(Fig- 04.71) I receive support in meeting family and personal obligations Page.172

(Fig- 04.72) I believe that Company is supportive of my life outside of

work, wherever necessary. Page.173

(Fig- 04.73). My work arrangements allow me to balance my personal life

with my work Page.174

(Fig- 04.74) I am able to balance the demands of my time between my

work life and my personal life Page.175

(Fig- 04.75) I would like to participate in a recreational league outside of

work with my co-workers Page.176

(Fig- 04.76) Organization recognize the employees by providing monetary

and non-monetary rewards to excellent performers Page.177

(Fig- 04.77) The Company offers rewards based on contribution and

results, rather than job title and service Page.178

(Fig- 04.78) Our employees are committed to improving quality of services Page.179

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(Fig- 04.79) Our organizational culture enhances employee commitment Page.180

(Fig- 04.80) Our organization has clearly identified the customers who

receive our Service. Page.181

(Fig- 04.81) Our Company's current activities reflect a strong focus on the

customers. Page.182

(Fig- 04 82). In my job I have the freedom to understand and meet

customer needs. Page.183

(Fig- 04.83). The internal practices of our Company adequately encourage

me to deliver customer focused services at the expected level Page.184

(Fig- 04 84). Work environment in my area allow me to be highly

productive. Page.185

(Fig- 04 85) At the Company, my suggestions /Customer suggestions are

given due consideration Page.186

Figure 04 86 H1: Manpower Planning and Recruitment Practices in the

organization are significantly related to Employee Satisfaction Page.187

05.6 H6: Employee Reward Systems in the organization are significantly

related to Employee Satisfaction Page.188

Fig- 04.08). The Recruitment procedures are clearly defined, Fair and

unbiased Page.189

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Figure 04 87 H2: Training and Succession Planning Practices in the

organization are significantly related to Employee Satisfaction Page.190

Figure 04 88 05.3 H3: Performance Management Practices in the

organization are significantly related to Employee Satisfaction Page.191

Figure 04.89 05.4 H4: Employee Motivation and Employee Engagement

Practices in the organization are significantly related to Employee

Satisfaction Page.192

Figure 04 90 Grievance Handling and Communication Practices in the

organization are significantly related to Employee Satisfaction Page.193

Figure 04 91 Employee Reward Systems in the organization are

significantly related to Employee Satisfaction Page.194

Figure 04 92 The Human Resource Practices are significantly related to the

overall Performance of the Company Page.195

Figure 04.93 The Human Resource Practices in NBFC are significantly

related to Page.196

Work Life Page.197

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LIST OF ABBREVIATIONS

Abbreviations Description

AUM : Asset Under Management

BCs : Banking Correspondents

BIFPL : Belstar Investment and Finance Private Limited

BSE : Bombay Stock Exchange

CAGR : Compound Annual Growth Rate

CEO : Chief Executive Officer

CRISIL : Credit Rating Information Services of India Limited

CSR : Corporate Social Responsibility

EDIs : Equated Daily Installments

ESOPs : Employee Stock Option Plan

EWS : Economically Weaker Sections

FICCI : Federation of Indian Chambers of Commerce & Industry

FY : Financial Year

GDP : Gross Domestic Product

HADS : Human Resource Development System

HR : Human Resources

LTV : Loan To Value

ICRA : Investment Information and Credit Rating Agency of India Limited

ICICI : Industrial Credit and Investment Corporation of India

INR : Indian Rupees

IRDA : Insurance Regulatory and Development Authority of India

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LAP : Loan Against Property

LIG : Lower Income Groups

MAFIL : Manappuram Finance Ltd.

MFIs : Micro Financial Institution

MMA : Muthoot Management Academy

MPG : Muthoot Pappachan Group

NBFC : Non-banking finance companies

NCD : Non Convertible Debenture

NPA : Non Performing Asset

NPS : National Pension System

NSE : National Stock Exchange

PMS : Performance Management System

PSU : Public Sector Undertaking

RRB : Regional Rural Bank

SHGs : Small Help Group

SME : Small and Medium Enterprises

USD : US Dollar

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CHAPTER - I

INTRODUCTION

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CHAPTER ONE

INTRODUCTION

01.01 Introduction

Non-banking finance companies (NBFCs) form a vital part of the Indian financial system. They

play a significant role in nation building and financial incorporation by complementing the role

of the banking sector in reaching out and catering credit features to the non-banking sections of

society. NBFCs have marked a enormous success story in the history of the Indian economy.

Their contribution to the economy has grown from 8.4% in 2006 to over 14% in March 2015. In

terms of financial assets, NBFCs have recorded a considerable growth—a compound annual

growth rate (CAGR) of 19% over the past few years and currently encompassing 13% of the

total credit exposure, and which is expected to reach nearly 18% by 2018–19.

01.02 Evolution of Regulation of NBFCs in India

In the stir of failure of several banks in the late 1950s and early 1960s in India, large number of

ordinary depositors lost their money. This led to the creation of the Deposit Insurance

Corporation by the Reserve Bank, to provide guarantee to the depositors. (Later by adding a

credit guarantee component, it became the DICGC). While this facilitated the necessary safety

field for the bank depositors, the Reserve Bank did figured that there were deposit taking

activities embarked by non-banking companies. Though they were not standardized and efficient

as the banks, the Reserve Bank initiated regulating them, as they had the probability to cause

misery to their depositors.

The Reserve Bank stiffened the controlling system of the NBFCs, with tough registration

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process, improved reporting and management. Reserve Bank also determined that no more

NBFC will be allowed to raise deposits from the public. Later when the NBFCs revealed that

banking was their main source of funding, it raised the systemic risk issues. The Reserve Bank

introduced asset side prudential regulations onto the NBFCs anticipating that it can cause

financial instability

01.03 NBFCs of India

The term NBFC involves a very extensive meaning. NBFCs comprises not just the finance

corporations that the common public is largely accustomed with; the term also involves broader

group of companies that are associated in investment business, insurance, chit fund, nidhi,

merchant banking, stock broking, alternative investments, etc. as their principal business.

Conventionally, India has had a bank-dominated financial segment in spite of the presence of

many NBFCs. In earlier times, there were small family run businesses for deposits acceptance

and lending activities. Even today, this segment may be small as compared to banking sector

with a total asset size of just around 14 percent of that of scheduled commercial banks (other

than RRBs). However, there is no doubt that the sector has grown immensely over the years in

size, system and complexity, with some of the NBFCs operating as corporations having business

interests spread to sectors like insurance, broking, mutual fund and real estate which implies the

inter-connectedness and systemic significance of the NBFC sector also have improved.

NBFCs being financial intermediaries are involved in the action of take along the saving and the

investing sectors together. In this role they are observed to be playing a complimentary role to

banks rather than competitors, as it is a known circumstance that majority of the population in

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our country do not yet have reach to ordinary financial products and services such as a bank

accounts and therefore the country needs institutes beyond banks to approach in areas where

banks presence may be less significant. Thus NBFCs mainly those providing service to the urban

and rural poor viz. Asset Finance Companies and NBFC-MFIs have a supporting role in the

financial inclusion motive of the country. Further, some of the big NBFCs are engaged in

lending absolutely to the infrastructure segment and some are into factoring business, thereby

stimulating the growth and expansion of the respective sector of their operations. Thus NBFCs

have also diversified into niche commercial ranges for them within the financial segment agenda

and are providing personalized products like second hand vehicle financing, SME Lending

mostly at the doorstep of the customer. By diversifying the risks, increasing liquidity in the

markets in this manner upholding financial stability and fetching effectiveness and competence

to the financial sector, NBFCs fetch the much required diversity to the Indian financial section.

At the same time, their rising size and inter-dependency also increase the concerns on financial

consistency. Reserve Banks attempt in this context has been to restructure NBFC guideline,

address the risks possessed by them to financial stability; address depositors and customer’s

welfares, address regulatory arbitrage and assist the sector grow in a positive and proficient

manner. Some of the regulatory actions include recognizing important non-deposit taking

NBFCs as those with asset size of Rs. 100 crore and above and binding them under stringent

prudential norms (CRAR and exposure norms), allotting guiding principle on Fair Practices

Code, in accordance with the guidelines on reformation and securitization with that of banks,

approving NBFCs-ND-SI to issue perpetual debt instruments etc.

Till March 31, 2016, the total number of NBFCs are 12,029 out of which deposit accepting

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NBFCs are 241 and non-deposit accepting NBFCs holding asset size of Rs.100 crore and above

are 465, non-deposit accepting NBFCs holding asset size between Rs.50 crore and Rs.100 crore

are 314 and those holding asset size less than Rs. 50 crore are 11009. Till March 31, 2014, the

average leverage ratio (outside liabilities/ owned fund) of the NBFCs-ND-SI was noted at 2.94,

return on assets was 2.3%, Return on equity (net profit as a percentage of equity) noted to be

9.22 % and the gross NPA as a % of total credit exposure (combined level) was 2.8%.

01.04 Asset Liability composition Liabilities of the NBFC sector

Owned funds (23% of total liabilities), debentures (32%), bank borrowings (21%), deposit (1%),

borrowings from Financial Institutions (1%), Inter-corporate borrowings (2%), Commercial

Paper (3%), other borrowings (12%), and current liabilities & provisions (5%).

01.05 Assets of the NBFC sector

Loans & advances - 73% of total assets, investments -16%, cash and bank balances -3%, other

current assets- 7% and other assets -1%. The data refer to only deposit taking NBFCs and non-

deposit taking NBFCs has asset size of Rs.100 crore and above. (All figures are as on end March,

2014.)

01.06 Role of NBFCs and Gold Loan NBFCs in financial inclusion

Financial Inclusion has been defined as the facility of affordable financial services to those who

have been left unattended or under-attended by formal agencies of the financial system. These

financial services contain remittance and payment facilities, savings, loan & insurance services.

Micro finance has been considered as an essential means of financial inclusion in India.

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Microfinance is not just provision of micro credit but also other services in small quantities to the

poor i.e. providing essential financial services to the poor in an affordable way. Financial

Inclusion is also targeting at the same by offering the poor with not only deposit accounts or

credit but also remittance and insurance facility.

As enunciated by the Committee on Comprehensive Financial Services for Small Businesses and

Low Income Households (Mor Committee) in its report, on both Financial Inclusion (defined as

the range of financial institutions and financial services across the country) and Financial Depth

(defined as the fraction of credit to GDP at various levels of the economy) the overall condition

remains very poor and, on a regional and sectorial basis, very irregular.

While the Reserve Banks model for financial inclusion is basically bank-led, trust that non-bank

entities do have idea to partner banks in the financial inclusion initiatives. They have allowed

non-bank bodies as Business Correspondents of banks to attain the larger objectives of financial

inclusion. Since September 2010, MFIs that are bank-SHGs, Trusts, Societies or Section 25

companies have been allowed to become Banking Correspondents (BCs). At the same time

several non-bank bodies on their own are part and parcel of this greater objective, for e.g. NBFC-

MFIs which form the substantial part of the MFI sector have profound reach in the rural areas.

NBFC-MFIs does not themselves figure in the bank led model of financial inclusion but their

broader and profound influence can be a facilitator in providing the necessary support to the

poor borrowers to gain access to important financial services.

Though the new banks that are being projected would certainly give fillip to the countries

financial inclusion creativities, contrasting the enormous job of complete financial inclusion

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against it also brings to attention the need for discovering exceptional ways to achieve the goal.

The More Committee has observed that each of the segments, be they NBFCs, large National

Banks or regional cooperative banks, have a great deal of enduring value to add by concentrating

on its own distinguished competences and accomplish the national objectives of financial

inclusion by associating with others that bring complementary competences to bear on the

problem.

It is well known that India sits on the largest stockpile of privately held gold estimated at

between 20,000 to 25,000 tonnes and valued at over one trillion dollars. Interestingly, ownership

of gold in India is widely dispersed, cutting across geographies, the rich-poor and the urban-rural

divide, with rural India holding the major share (approx. 65%). This should be no surprise

because, in the absence of financial inclusion, many people continue to invest their savings in

gold. During moments of necessity, people have the option either to sell the gold or to pledge it

and raise money. Given the attachment to gold, pawning gold is often the preferred alternative to

its outright sale.

In recent years, the fact that gold loans are increasingly finding favour with micro-entrepreneurs

(the small business owner, the trader and shopkeeper, the self employed etc.) has been well

recognized in the media. If financial inclusion is counted as inclusion in the wealth creation

process, gold loans have a key role to play.

Gold loans offer a simple, hassle-free solution to working capital needs and this is something the

man on the street has long known. Much in the way that mobile telephones contribute to self-

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employment in trade and services—allowing people entry into business from their homes

without having to invest in shops and offices— gold loans have opened up opportunities for self

employment and driven investments into microenterprises. It happens because access to gold

loans lowers entry barriers to micro-enterprise by eliminating the critical hurdle of having to tie

up finance from banks.

A landmark study in 2009 on microfinance offers critical insight into why gold loans inspire

entrepreneurial behaviour among the poor. “Does microfinance repayment flexibility affect

entrepreneurial behaviour and loan default?” by Erica Field and Rohini Pande (Harvard) and

John Papp (Princeton) was in response to evidence from the ground pointing to the limited

impact of microfinance in improving livelihoods of its beneficiaries, predominantly in regard to

enterprise growth. It considered the possibility that the rigid repayment terms of the standard

microfinance loan—widely credited with keeping defaults down and making microfinance

viable—may well be a discouraging factor for investment in microenterprises.

01.07 Gold Loan Market in India

Customs and traditions. Women richly clad in gold jewellery are a familiar sight in Indian

tradition and is a sign of prosperity and well being in a society. Also, in a rich social heritage

filled with celebrations and gaiety, gold jewellery was always esteemed and in demand. Gifting

of gold on auspicious occasions is also a common tradition in the country. With the rising

demand, people also buying gold as the value of gold assets is rising continuously. On this solid

base, the gold loan industry has huge potential to grow even further as currently it is estimated

that less than 2% of the total gold stock is used for pledging/ obtaining gold loans.

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Gold loan business has existed in society since earlier times but the market was totally

unorganized as there was no involvement of government or private institutions. With the entry of

organized players like banks and Non-Banking Finance Companies (NBFCs), the market

scenario has changed significantly and organized players grew rapidly. However, even today,

there is a dominance of the unorganized sector which accounts for nearly three-fourth of the total

gold loan market in the country.

The organized gold loan market has grown immensely over the last two years with noteworthy

growth reported by some of the specialized NBFCs. However, recent regulations introduced by

the Reserve Bank of India have decelerated the growth of NBFCs and the organized gold loan

market as a whole. At the same time, the new guidelines have made the operations more

transparent and customer friendly (especially in case of NBFCs) and provide a platform to banks

(both public and private) and NBFCs to grow their share in the coming years.

Regionally, the highest share in gold financing is in Southern India followed by North, West and

East in that order. As the organized gold loan market originated from the southern region, there

is a high dominance of South-based players in the business. Today, these players are focusing on

other regions to maintain the growth momentum. In the coming years, the organized gold loan

market is anticipated to grow at a CAGR of around 25.5% during FY2012-2015.

People will resort to gold loans to fulfil their short-term needs especially in the urban India. As

per our survey, most of the people are using gold loan for various purposes besides the usual

tendency to use them in financial crisis. The perception of people towards gold loan has been

changing and this will help the organized gold loan industry to grow in the coming years.

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Since the gold loan market is highly unorganized, the organized segment has a huge potential for

growth through cannibalization of the unorganized segment. A finer, superior and more

resourceful network of branches would help the organized segment reach this growth area. The

gold loan market in India is still under-absorbed considering the ample availability of gold as

collateral with Indian private households compared to the existing size of the gold loan market.

There remains substantial opportunity for growth of the gold loan market in India.

01.08 Key Drivers of Gold Loan Market in India

The prevalence of high level of rural indebtedness, easy availability of gold loans on extremely

flexible terms, relative scarcity of personal and retail loans from the banks, and changing attitude

of customers to gold loans have contributed to the sharp growth in the gold loans outstanding. It

was also recognized that there is prospective of progression gold loans market to the Northern

and Western regions of India, provided the branch network is improvised and the loans are made

available with ease and with flexible options. Several large finance companies started expanding

their branches in these regions and the response appears to be favorable. The gold loans NBFCs

and banks operating in the gold loans segment have different approaches and philosophy which

can be seen in the margins and profitability for different category of lenders. Gold loans NBFCs

consider gold loans as their supreme intensive business and, therefore, have constructed their

service offerings by investing in technology and innovative practices. They have been

highhanded premium yields and higher profitability. In contrast, banks focus on gold loans for

agriculture as a safer means to meet their priority sector lending targets, which otherwise offer

low returns with high defaults. Further, even for non agriculture gold loans, their target clientele

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is the more high-value segment, given that they are unable to offer the level of flexibility and

rapid disbursals like the specialized NBFCs.

01.09 Trends in Gold Loans Outstanding

Gold as an asset is liquid and can be easily swap over for cash even in the informal market. With

the gold market becoming more organized inside a formal system, therefore recently, there has

been fast development in the gold loans market particularly in gold loans distributed by Banks

and NBFCs. Both demand and supply factors have played significant roles in fetching this

growth. From the demand side, holders of gold were able to convert to cash in lieu of their gold

in a formal setup and at higher loan to value ratios at relatively lower rate of interest under more

promising terms and conditions when compared with the informal segment. According to the

supply point of view, banks and NBFCs were able to distribute loans against collateral whose

market value was going up or steady even in times of financial instability.

India is one of the largest markets for gold and gold loan. According to World Gold Council,

India contributes 10% of total world gold stock, of which rural India contributes 65% of the

country’s total gold stock. The reasons for this are many and include various social, economic

and cultural dimensions. For Indians, gold is not just a commodity, but an auspicious metal they

buy for various purposes on different occasions. There has always been a high demand for gold

in India, irrespective of prices. During 2001- 2012, the annual demand for gold remained

relatively stable at around 700 to 900 tonnes despite constant rise in prices.

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‘Loan against gold’ has been in existence in India for centuries as a traditional business and as a

means of ‘last resort’, to meet the financial requirements of households. Traditionally, banks and

village money lenders have dominated the gold loan business in India. But the entry of the

NBFCs in recent years has brought a transformation in its character and composition. In the

decade up to 2012, the gold loans business became one of India’s fastest growing businesses,

attracting a lot of media attention.

01.11 Market Size

The organized gold loan market grew rapidly over the past few years as consumers have changed

their perception about gold financing. Among the organized players, NBFCs have achieved a

record growth by offering gold loans at high loan-to-value ratio (LTV). For instance, Muthoot

Finance grew over 10% during the last two years (FY 2014& FY 2015). Similarly,

Manappuram’s net profit for FY 2011 increased by 13% over FY 2015).

In FY 2011, the organized gold loan market was estimated at around INR 510 Billion. The gold

loan market is anticipated to grow at a CAGR of around 25.5% during FY 2012-2015 to reach

INR 1,285 Billion by the end of FY 2015.

In future, the organized gold loan market will be driven by the changing perception of the

consumers towards gold loan which is a major factor for the growth in urban market. As gold

loans are easy to avail, people are beginning to realise its utility for growing their business or to

meet their short-term needs. Moreover, as earlier discussed, the tradition of wearing and gifting

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gold in India fuels demand for gold which will encourage customers to go for gold through

financing options.

.01.11 Glimpse of Human Resource at NBFCs

In the last decade, non-banking financial businesses, especially Gold Loan NBFCs, have seen

remarkable growth in the country. From a couple of southern based players in the market few

years ago, the sector has met many new entrants. Moreover, with the banking system clearly

inhibited in terms of expanding their lending activities, the role of NBFCs becomes even more

important given the strong emphasis of the government on promoting entrepreneurship with the

objective to re-form India into a country of job creators instead of job seekers.

NBFCs are using both traditional and modern techniques for talent procurement and retention.

As NBFCs expand further, huge employment opportunities will evolve over the industry. New

units, new structure, new business ideal and huge cross-selling occasions will demand both mass

and non-mass hiring in the sector. Going forward, it will be common to see a class of niche

NBFC specialists with very polished skill sets. According to industry informants, the three

foremost Gold Loan NBFCs have given direct employment to more than 40,000 people.

Table (01.01) Employability Chart of Leading Gold Loan NBFCs

NBFCs

2013 2014 2015

Branches Employees Branches Employees Branches Employees

Muthoot Finance Ltd. 4270 25612 4245 22882 4275 22781

Manappuram Finance Ltd. 3293 16794 3293 15863 3663 16693

Muthoot Fincorp Ltd. 3831 18113 3699 18113 3645 14992

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As companies in the NBFC sector grow, it’s essential for hiring managers to use technology to

bridge the geographical divide in a cost-effective manner. It’s not always efficient to have a

hiring manager stationed in each and every town and so using video conferencing, online

assessment and other technologies for virtual hiring processes are necessary and imminent.

We’ve seen that this ensures quality of the hire and, at the same time, increases efficiency of the

process. A study report of Aon Hewitt on hiring trends by India 2016 says that 48% of

organizations report that ‘Engagement with passive talent’ when done well by competitor is a top

threat to attract talent. With 64% of organizations reeling under the pressure of losing talent to

‘Competition’, having a well defined and consistently communicated employer brand is a clear

competitive advantage. 79% of companies report ‘Increase in hiring’ compared to the last year,

with two-thirds of the recruitment are being done for junior and entry levels .Increasing margin

burdens and branding despairs will give rise to alternative methods such as social sourcing and

referrals. Constituents that magnify the employer brand will observe increased funds. 29% of

organizations believe that ‘Quality of Hire’ is the most important metric to track hiring

effectiveness over speed and cost of hire. Moreover, 30% of organizations want to track ‘Quality

of Hire’ constantly in the coming year. However, 90% of these organizations track ‘Quality of

Hire’ contrarily. Early attrition of 30% and Manager feedback of 20% the most commonly

encountered metric to measure Quality of Hire.

While employers in three sectors report bullish Outlooks of +45% − the Finance, Insurance &

Real Estate sector, the Public Administration & Education sector and the Wholesale & Retail

Trade sector. When compared with 4Q 2015, hiring plans strengthen in four of the seven

industry sectors. Finance, Insurance & Real Estate sector employers report an increase of 6

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percentage points while Outlooks are 4 percentage points stronger in both the Mining &

Construction sector and the Public Administration & Education sector. With a Net Employment

Outlook of +45%, employers forecast a booming labour market in the coming quarter. Hiring

intentions improve by 6 percentage points when compared with the previous quarter and are

unchanged year-over-year.

Women form an integral part of today’s workforce, especially in the financial services sector. A

large chunk of this pool however, is seen to “drop out” of the work force after a mid-

management level, primarily in order to raise a family. At our company, we realize that there is a

huge latent pool of women with tremendous talent who want to return to the work-space after

having children. I can’t say we have mastered this yet, but there is a conscious effort on the part

of our recruitment processes to be inclusive and empathetic towards women in the workforce.

Returning employees form yet another pool of talent that is being recognized by organizations.

Rehiring is beneficial to the both the employee, who is choosing to return to a familiar

environment, as well as for the employer, who is recruiting someone who’s already familiar with

the company culture and infrastructure. This also helps increase hiring process efficiency as well

as lowers the training period and costs.

Hiring is no longer the sole agenda of the HR fraternity, but today being driven by business

leaders including CEOs. Companies are realizing that it’s equally important to attract talent as it

is to attract customers. Marketing-style campaigns that traverse the traditional and social media

mean substantial spends on building a credible “employer brand”. Top talent today is aware of

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their market-worthiness and select employers as much as they are selected by employers.

Providing a breakthrough experience to a potential job seeker helps spread the word of mouth

and serves as a brilliant marketing tool for an organization. On the contrary, a bad hiring

experience may cause the right applicant to turn down the job.

One of the most effective tools for employer branding is the retention of existing employees.

Retention in today’s world begins from the very first day of recruitment. To motivate high

potential talent within the workforce, one can offer structured leadership development

programmes that focus on functional and managerial skills. A highly motivated and enthusiastic

staff will positively influence the employer brand in today’s inter-connected world of social

networks. Talent retention thus, plays a crucial role in new talent acquisition As per Manpower

employment outlook survey 2016 conducted by Manpower group service India Pvt Ltd 6 % hike

in financial sector recruitment in 2016 itself shows the more employments opportunities in the

sector and NBFCs employer brand is well established in India.

However, official policy in India favours the banking sector in the drive for financial inclusion,

with little role envisaged for the non-banks. Notwithstanding the official encouragement,

commercial banks are poorly placed to drive financial inclusion because they are burdened by

high costs, especially HR costs. It’s been reported that about 65 percent of a bank’s operating

cost is taken up by manpower costs, and PSU banks spend three times or more per employee

than NBFCs. Banks also lack the last mile reach of the NBFCs and getting through to targeted

beneficiaries is not easy. Extending last mile reach to service low value customers in a high cost

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set-up is unviable. While there has been much talk about the Business Correspondent model, it is

yet to show results on the ground.

01.12 Muthoot Finance Ltd.

Muthoot Finance Ltd was founded in 1887; the Muthoot Groups have been started as a small

scale trading activity in Kozhencherry, a remote village in Kerala. Over the years, gradually, the

Muthoot Group has made its presence felt across financial services industry, leisure &

hospitality, plantations & estates, housing & infrastructure education, precious metals, securities,

healthcare, wealth management, money transfer, InfoTech, , money transfer, forex, media, power

generation, wealth management, vehicle & asset finance and travel services, among others. Also,

Muthoot has prolonged its spread and expanded its opportunity through these years. Muthoot

Finance Limited is the flagship Company of its Group. Headquartered is in Southern Indian state

of Kerala, India, they have risen as the biggest gold financing company in India in terms of loan

portfolio. The Muthoot Group has been in this business of loan and financial service for over

77years. They are categorized as a ‘Systemically Important Non-deposit taking NBFC’

according to the Reserve Bank of India regulations; they are also listed on the country’s foremost

stock exchanges, namely BSE and NSE. In addition to other services, they also offer home loans

and insurance through their subsidiary firms.

India has surely the prospective to become a double-digit growth economy. In order to fulfil its

desire, it calls for a strong and steady financial sector. India’s financial sector has arisen a long

way since the start of liberalisation in 1990 and has been a vital contributor to its growth. Ingress

of the financial services has developed in a big way but remains below than that of the counties

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of similar economies. The Government and the Reserve Bank of India have introduced several

guidelines for escalating the availability of financial services to common people. Still, a large

portion of financial assets is concerted among few organizations which is preventing the

competition and passing on the leads of competition. NBFCs like Muthoot Finance play a key

role in filling this space. NBFCs are capable of growing nationally and add up the credit growth

and provide the last mile connectivity, thus promoting financial inclusion. Broadening their

reach, they believe that gold loan provides additional opportunities for growth and expansion so

it should carry on to be the main-stream revenue maker for the Company. However, they are

very interested to expand their offerings to meet the needs of wide-ranging existing or potential

clients as well as those who are present in other segments of financial services business. During

2015-16, they invested nearly 44.91Crores in Muthoot Home fin (India) Chairman’s

Communiqué Annual Report 2015-16 11 Corporate Overview Statutory Reports Financial

Statements Ltd., acquired 79% of its share capital, making it a subsidiary. It concentrates on

ranging affordable housing finance and aims customers in Economically Weaker Sections

(EWS) and Lower Income Groups in Tier II and Tier III places. It functions on a ‘hub-and-

spoke’ prototype with central handing out at the Corporate Office in Mumbai. The Company is

presently functioning from Kochi, Pune, Mumbai, Nagpur, Indore, Ahmadabad and Jaipur. It has

a loan collection of 30 Crores as on 31st March, 2016. Soon they attained stake in Belstar

Investment and Finance Private Limited (BIFPL) to mark their presence in the microfinance

business. As on 31st March 2016, BIFPL has 76 offices spread across five states of Tamil Nadu,

Puducherry, Madhya Pradesh, Karnataka, Maharashtra, and Madhya Pradesh with microfinance

loan portfolio of ` 264 Crores. Going ahead, they will increase their holding to nearly 57%, thus

making it a subsidiary. They also wholly acquired Muthoot Insurance Brokers Pvt Limited

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(MIBPL), which is an IRDA approved insurance direct broker. This has further empowered them

to expand their choice of investment in varied products for their customers. During the year

2015-16, they improved their share holding in Asia Asset Finance PLC and their Sri Lankan

subsidiary from has been marked growth from 51% to 59.70% in the completion of first full

financial year after becoming a subsidiary of Muthoot Finance. The collaborations have already

started to show outcomes as the LKR 1.2 Billion and interest income increased by 49% and

profitability by 73%, attaining LKR 175 Million. The asset base reached` 8.1 Billion with a

growth of 52%,. During the year 2015-16, the lead of gold loans and the expansion of micro

finance portfolio have been the main reasons of their growth. Muthoot firmly consider that these

businesses will add its market value to all stakeholders during the medium to long-term time

horizon. Revenue grew from 4,325 Crores in 2014-15 to 4,875 Crores in 2015-16 by 13%,. Net

profit amplified from 671 Crores in 2014-15 to 810 Crores in 2015-16 by 21%, due to aggressive

collection struggles on overdue accounts, evading of settlement schemes and higher insight on

auction of unpaid loan accounts due to higher gold prices. Concurrently, gold loan under

management increased by 4 % from 23,350 Crores in 2014-15 to 24,336 Crores in 2015-16.

General EPS increased to 20.34 in 2015-16 from 16.97 in 2014-15 and their book value per share

increased to 140.72 and as on 31st March 2016, their Net worth was 5,619 Crores. Market

capitalisation recorded 15,000 Crores for the first time in August 2016. In addition, to meet

unforeseen event and for higher level of investor relief, they have augmented the standard asset

provision from 0.52% to 1% hence keeping an alternative in addition of regulatory requirement

of 0.30%. Credit Rating it is an element of pride and gratification for them that India’s leading

credit rating agencies both CRISIL and ICRA moved up their long-term rating from ‘AA-

/Stable’ to ‘AA/ Stable’. The rating upgradation is a result of steady and consistent performance

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even after of going through stormy times in the past four years along with their progress in

financial stability last year. This upgradation is recognition and a result of the immiscible efforts

of ‘Team Muthoot’. They firmly believe that, under AA rating, they stepped into a different

league of credit-rated businesses. This upgradation will help them to get better rates from

financial institutes and banks, empowering them to decrease their cost of borrowings. At

Muthoot, their people enthusiasm and teamwork are the principal growth facilitators. HR policies

balance business needs, as well as the requirements and concerns of their people. They put more

focus on training their people in line with industry requirements. Muthoot Management

Academy train and develop their supervisory staff, besides improving leadership capabilities of

their employees. Their practices and processes enable people to deliver encouraging outcomes

and be recognised for their efforts. Social empowerment At Muthoot, community development is

integral to their sustainability strategy. CSR as conducting business in a way that provides social,

environmental and economic benefits to native communities. Muthoot recognise that inclusive

growth can be achieved through responsible community participation, thereby contributing to

social prosperity. Keeping these guiding principles in mind, Muthoot have delivered their CSR

activities through Muthoot M George Foundation, a ‘helping hand in need’.

SPIRIT OF MUTHOOT STAYS STRONG When the business is getting diversified rapidly in

terms of financial solutions that they provide and also the geographies they cater to, it is easy to

lose focus on the core capabilities of people. Therefore, they have put in place multiple

engagements and upskilling programmes to ensure that the spirit of Muthoot stays strong and

grows stronger. Annual Report 2015-16 25 Corporate Overview Statutory Reports Financial

Statements Recruitment they assess the requirements of particular verticals, their specific

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objective for the particular financial year and the business volumes that we are looking at.

Accordingly, they have decided the number of people needed to be recruited in any vertical. they

have also introduced the ‘employee referral key’ to attract suitable candidates in particular

branches. Besides, they are using various social media platforms apart from campus

recruitments. During the year, muthoot recruited students from some of the most reputed

business schools of India. Employee engagement they use various mechanisms to enhance the

engagement level of employees. they try to enhance engagement with the people through

organising various events such as sports tournaments, outings and other fun activities

Programmes comprise rewards and recognitions (both monetary and non-monetary), job rotation

and job up-gradation or up-skilling, among others. Training programmes nurturing our people is

one of their primary responsibilities. They have a training calendar in place, prepared on the

basis of specific requirements of people. Muthoot Management Academy (MMA) is the division

of HR department, responsible for the training and development of supervisory staff of Muthoot

Finance. MMA is a fully equipped, professional training facility that designs and delivers best-

in-class training programmes focused on enhancing employee productivity as well as improving

management and leadership skills. MMA is run by a dynamic team of qualified and talented

trainers. MMA also has a media wing that produces engaging content for internal consumption

and digital marketing. Few certificate programmes conducted by this Academy include

managerial effectiveness programme, branch manager programme, cluster manager programme,

performance improvement programme, corporate induction programme and performance

management programme, among many others. Leadership development They have developed

relevant modules to sharpen leadership capabilities of their employees. With proper grooming,

employees get promoted to the level of managers within two years. Their Leader Learning

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Centre helps employees to take the next leap with more confidence. They introduced the

Performance Scorecard Mechanism to analyse the performance of employees. Besides, quarterly

assessment system and performance monitoring mechanism are helping them to assess loopholes

and take corrective measures. Employee scores play a crucial role in promotions, increments and

salary revisions. On the basis of performance scores, They are also preparing performance

improvement programmes.

Strategic focus--The entire HR architecture has become digitised; and they aim to focus on

strengthening their technical base in every financial year. Going forward, the Company have the

plan to enhance its HR initiatives as their business is becoming more diversified and expanding

its reach to new geographies. 2,250+ Training conducted during 2015-16 New team members

inducted during 2015-16.

01.12.1 HUMAN RESOURCES - Company has always considered its employees as backbone

of the Company and is aimed at providing employee satisfaction, enabling them to deliver better

results year over year. As on 31st March, 2016, the Company had 22,781 employees in its rolls

at various level of organizational structure. Company is always committed in providing its

employees with ample opportunities to learn and advance in their career. In its quest for having a

satisfied work force, Company has focused on four major areas for employee engagement during

the last financial year.

01.12.2 Rewards & Recognition – Based on performance of the employees, the Company

introduced new means of incentives/increased the percentage of payout for incentives. The

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Company also has announced an ex-gratia payment along with Festival bonus, which is almost

equal to one month pay of employees at each grade. It also took steps to increase the payout for

Incentive for Gold Loan Portfolio Growth and for Interest Collection. The Company is also

rewarding employees with foreign trips to exquisite locations based on their achievement.

01.12.3 Training and Development- Company has offered multiple training programs to

employees to help in their development. The programs include product/process related trainings,

soft skill trainings, leadership trainings and certification trainings for different group of

employees. Training is imparted through two Muthoot Management Academies and 67 Regional

Learning Centres.

01.12.4 Promotions- The Company has robust mechanism for identifying performers and has

taken all steps to promote eligible employees to the next level.

01.12.5 Performance Management- The Company had formulated a Performance Scorecard

method of performance assessment for all employees in the branch. A pre-defined scorecard was

used to capture performance of employees on a quarterly basis and all related corrective measure

and fine tuning of performance was done using this method. The company also encouraged low

performing employees through well-defined performance improvement programs. Use of

Performance Scorecards has helped in improving role clarity and objectiveness to performance

assessment. Company offers various benefits to employees including Employee Stock Options

and various statutory and non-statutory Staff Welfare Measures. All eligible employees are

covered under statutory provisions namely EPF, ESI, Maternity Benefits, Gratuity etc. Non

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statutory welfare measures include a Group Mediclaim Insurance Policy covering around 20,000

lives under a family floater cover of ` One lakh. Company also provides awards and

presentations to employees as ‘marriage gift’, ‘first time parent gift’ and ‘educational award’ to

their children. 2,121 employees were enrolled under the National Pension System (NPS) etc.

01.13 Manappuram Finance Ltd.

Manappuram Finance Ltd. is one of India’s prominent gold loan NBFCs. It is promoted by Shri.

V.P. Nandakumar,he is the current MD & CEO, the idea of gold loan was established during

1949 in the coastal village of Valapad in Thrissur District, Kerala by Mr. V.C. Padmanabhan,

father of Shri Nandakumar. Initially the firm was engaged in pawn broking and money lending

carried out on a small scale. Shri Nandakumar took over the father’s path in 1986 after his father

expired.

Since then, it has been a story of unmatched growth with many milestones crossed. Manappuram

Finance was incorporated in 1992, since then growing at a rapid pace. Currently, it has over

3,747 branches across 28 states and Union Territories with assets under management (AUM) of

about Rs.130,140 million and a committed workforce of 19,372.

01.13 .1 MANY ACHIEVEMENTS

After commencing its operations, the company bunched up numerous “firsts” to its credit. It was

the first NBFC in Kerala to receive a Certificate of Registration issued by the RBI, it was also

among the earliest to proceed for an IPO in 1995. In 2007, Manappuram became the first Kerala

based NBFC to collect investment from foreign institutional investors (FIIs) when the renowned

PE fund, Sequoia Capital, invested Rs.700 million along with Hudson Equity Holdings. Sizable

foreign investment was received during two QIPS in 2010 with a total of Rs.12,450 million was

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raised. It. was the first NBFC in Kerala to acquire the utmost short term credit rating of A1+

from ICRA. In 2010, Manappuram Finance Limited became the first Kerala-based NBFC to

offer Employee Stock Option Plan to its middle and senior management officials.

01.13 .2 A RECORD OF INNOVATIONS

As an innovator and pioneer, Manappuram Finance Ltd. has always been an visionary par

excellence innovations that enabled it to lead the way and stay ahead in the market.

Technology innovations: Manappuram was one of the first to adopt the “core banking” policy.

This was no mean achievement contrasting to the banking sector, there were no ready-made

software resolutions for gold loans. It came into reality only because the company invested in

creating its own exclusive solutions, and today its technology platform is one of its central

powers. The investment in technology has benefitted in many ways, for instance, in restructuring

procedures to reduce turnaround times in gold loan disbursal and in employing advanced risk

management practices as described below.

Ability to weed out spurious and substandard gold at the pledge stage itself is critical to the

success of a large scale gold loan business. The purity testing that is carried out basically verifies

the pureness of the ornament at a particular time. It is not designed for 100 percent inevitability.

Moreover, the gold loans business give emphasis to speed and stress free experience. Therefore,

simplicity of process is also a must and stability has to be struck. At Manappuram, advanced risk

management practices were put in place that depict upon the promoter’s profound understanding

of the business. It was executed through the IT platform which makes alerts to management upon

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any doubtful or abnormal trades at the branches. For example, the gold loan trade focuses on

household used jewels to which borrowers may be anticipated to have an emotional attachment.

When a branch receives various numbers of the similar ornament for pledge, it is more likely to

be a local jeweller or pawnbroker and the system automatically flags the operation for

authentication by internal auditors.

In accordance with its technology run innovations, the company launched its newest product

“Online Gold Loans” in 2015. A customer after the completion of initial formalities can now

avail a gold loan 24X7, from anywhere and everywhere in the world, even sitting at home. The

loan proceeds are straightaway transmitted to his bank account. The concept is now projected to

be advanced further with the launch of a co-branded debit card that would agree to even

customers without access to bank accounts to withdraw the money from an ATM anywhere.

Product innovations: Manappuram Finance Limited has always headed the way in the of

product innovations. Gold loans, for years were sold as a “one-size-fits-all” item. The company

has been an innovator in introducing variety to it by offering gradually higher loan amounts at

higher price points. Manappuram was also the first to introduce “one-day interest” where

borrowers have the choice to settle down a gold loan at their latest and convenience, even within

a day, at a time where the standard was to salvage a minimum interest of seven days, or even a

month.

The latest innovation is the launch of short tenure/term gold loans. Generally, all gold loans were

approved for one year and repayments of both interest and principal was the norm. After the

severe correction in gold prices in 2013, gold loan firms were faced with more defaulters and

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profitability took a hit. Manappuram Finance Ltd. launched short-term/tenure gold loans of three

and six month time period and today, its entire gold loan industry has been shifted to the short

term schemes. This has minimised price risk which otherwise is a major alarm in gold loans.

Innovative approach to raising finance: For a NBFC, raising moneys was a big task in the

nineties. In the aftershock of the CRB scam of 1997, raising sums from the public was

challenging and banks were not sure about lending to NBFCs in general. Moreover,

Manappuram’s venture into gold loans was unproved as a business model. Growth was gradual

in the initial days. The scenario changed only after the company thought upon unconventional

ways to raise funds.

In the first step forward, Manappuram Finance Limited was the first gold loan corporation to

raise funds through the securitization and assignment path linking up with ICICI Bank. The deal

with ICICI Bank continued to work fair for a few years and the company started growing. To

keep up the success, the company planned spreading out of the branch network. However in

2006, ICICI Bank faced some regulatory difficulties regarding securitization and they could no

more fund the company. With ICICI Bank drawing out, the expansion plans were in uncertainty.

Manappuram became the first NBFC in Kerala to attract foreign institutional investment in

December 2007, when the renowned PE fund Sequoia Capital invested Rs.700 million along

with Hudson Equity Holdings. Since then, the company has received foreign investment on a

regular basis. The second way of private equity funding in November 2008 was led by Ashmore

Alchemy along with Sequoia and Hudson, receiving another Rs.1,080 million. Substantial

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foreign investment has been attained during the two QIPS in 2010 when a total of Rs.12,450

million was raised.

After the coming of private equity, the company was able to shift gears and grow rapidly than

before as now including the PSU banks were ready to lend to it. From this point onwards, there

was no looking back for Manappuram Finance Limited.

Usually, companies have pursued funds from foreign investors after they pass over the domestic

banks and other financial institutions. But in Manappuram, the order was toppled. Because the

domestic banks were not comfortable in lending to NBFCs, especially one with an unproven

business model absorbed on gold loans, the company went out of India and impressed the foreign

players first. Once they were influenced, the domestic players became more assured about

lending to the company.

Innovative Marketing Campaign with multiple celebrities Brand Ambassadors- The gold

loan business is yet to propagate to its true potential in India in spite of having huge amount of

gold in private hands. There was an on-going myth attached to pledging gold. Rather than using

their gold to raise money, many preferred to go to moneylenders and borrow at inflated interest

rates.

Manappuram has been practical in dealing with these delicate issues direct. They followed a

marketing strategy of a big-budget advertising promotion campaign that casted celebrity brand

ambassadors with strong regional and familiar appeal talking about gold loans to the common

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people or audiences in their own language. During the trend of using one celebrity brand

ambassador for a countrywide ad-campaign, Manappuram’s campaign in 2010 had a cluster of

super stars like Mohanlal, Mithun Chakravarty, Akshay Kumar, Vikram, Venkatesh etc. and they

were used to target and appeal different topographies; The campaign was fruitful in emerging the

gold loan kind as a whole and benefits were earned by players across the sector.

01.13 .3 CSR REDEFINED

In addition to the focus on the business, the ground of the broader community is core vision of

the company. The Manappuram Foundation was established in October 2009 to initiate and

construct the company’s innovation in Corporate Social Responsibility (CSR).

The major scheme of Manappuram Foundation was to provide health insurance to 20,000 Below

Poverty Line community called as “Janaraksha Manappuram Free Health Insurance Scheme” to

the families in the 7 Panchayats situated around the Valapad. Along with cashless treatment at

some of the leading hospitals in Thrissur District, they are now eligible for free medical care up

to Rs.60,000 per year.

The another such Foundation is the Manappuram Academy for Professional Education which

provide no-fee tutoring for Specialised Courses such as CS/CA/ICWA, to intellectual students

belonging to low income families. In the year 2014, at the Golden Peacock Awards for Corporate

Social Responsibility, the company has been honoured as a 'Special Commendation'

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01.13 .4 RECENT DIVERSIFICATIONS

As the company was fully engrossed on gold loans, Manappuram was susceptible to the

concentration risk. Financial segment regulators and advisors in India have conveyed their worry

about the concentration risk prevailing in the single-line business model. To ease their concerns,

they introduced a courageous step to become a multiple product based firm.

Over the past two years, Manappuram Finance Limited has expanded into new business areas

like microfinance, SME lending, vehicle and housing finance. The company got hold of Asirvad

Microfinance Pvt Ltd. In Feb 2015 with AUM approx. Rs.3,000 million. Today, within an year

of its acquisition, AUM has multiply more than three times to about Rs.10,000 million after the

subsidiary extended operations to new topographies like Madhya Pradesh, Haryana, Chandigarh,

Chhattisgarh, UP and Punjab. In addition to microfinance, Manappuram has also diversified into

many new sectors such as commercial vehicle loans, SME loans and housing finance with

favourable results. Overall, these additional new businesses fund an additional Rs. 3,400 million

to the company’s combined AUM of about Rs. 13,0140 million. As per the records of March 31,

2016, the non-gold businesses contributed 12 % of the total business as of March 31, 2016.

01.13 .5 HUMAN RESOURCES

Manappuram Finance Ltd is a group which delights itself as a forerunner and innovator, they

state that, they develops their strength from the hard work and commitment of its highly

motivated staff. Right from inception, the company has been keen to spot and nurture the best

available talent. The HR department of the company places emphasis on professionalism and in

honing the skills of employees to maintain the edge in a competitive world. The company has a

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full-fledged training establishment where in-house training courses are regularly conducted in a

professional manner to upgrade skills and to enhance functional efficiency. Moreover, the

company sponsors an MBA degree programme for its employees who have completed five years

of service keen to upgrade their professional skills and qualifications. The median remuneration

of employees of the Company during the financial year 2015-16 was Rs. 1,66,896/-. In the

financial year, there was an increase of 17% in the median remuneration of employees. There

were 16,693 permanent employees on the rolls of Company as on March 31, 2016.

01.13 .6 PROACTIVE TRAINING INITIATIVES

MAFIL appointed an experienced professional as vice-president to strengthen the human

resource function. An ex-senior executive from a nationalized bank has been entrusted with the

responsibility to develop their talent pool. A state-of-the-art Manappuram School of Training (an

apex training college) at Valapad to provide need-based and essential training to employees.

They also scheme to set up four apex training centres across four metro cities. They reinforced

training modules of Know Your Customer (KYC), statutory compliance, fair practices code, risk

management, gold and credit appraisal, soft skill and behavioural science, among others. They

have strengthened mandatory e-learning systems for continuous education of employees.

Conducted proper training need analysis and evaluation of effectiveness of training to understand

world-class practices and changing requirements of customers. MAFIL revitalized the executive

development programme, focusing on soft skills (customer service and leadership skills, and so

on).They have changed the earlier classroom training methods to interactive sessions, based on

analysis of case studies etc .

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01.13 .7 EMPLOYEE WELFARE AND MOTIVATION

MAFIL Introduced fast track career progression path and succession plan to retain best talent.

Introduction of an incentive structure for our employees on the basis of performance distinction.

This is with a vision to hold employees in critical areas and build forthcoming leadership

pipeline. MAFIL are providing opportunities to our young leaders to work in advanced

dimensions in selective corporate office assignments. They are developing them as the

Company’s future leaders, which is primarily a succession plan for future years. Hundred young

leaders are identified internally, and initial training is imparted by KPMG.

01.13 .8 EMPLOYEE PERFORMANCE MANAGEMENT

MAFIL introduced a well-structured Performance Management System (PMS), designed by

KPMG for all employees. Senior leaders were given orientation and the first round of employee

appraisal was carried out during the year 2014-15 . They have the Plan of introducing online

PMS in the coming financial year. They have implemented a systematic succession plan by

selecting, training and placing our professionals at various levels of respective departments.

01.13 .9 TALENT MANAGEMENT

MAFIL team implements a decentralized recruitment policy at the entry level to attract and

retain local entrepreneurial talent who drive business in gold loans and related business

diversifications. The employees are trained and nurtured to become effective branch heads,

leading to business development. The team comprises evaluators who are skilled in the

assessment of the value and authenticity of the gold that is pledged with them and they run

periodic training programmes to enhance their workforce’s knowledge and productivity in

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execution their task. Focus on training, continuous in-house training programmes and online skill

assessments fortify the talent pool and augment skills for new branches and business segments,

strengthening the overall resource pool. Internal promotions have helped to improve

performance, increase employee morale and per person productivity. These initiatives have

helped to achieve cost reductions too.

01.13 .10 EMPLOYEE ENGAGEMENT

There are many events undertaken for employee engagement and they are planning to increase

organisation-wide activities in future. The Annual Manappuram Sports & Games Meet consisted

distinct events for children of employees and separate competitions arranged for senior citizens,

with contestants belonging to various age groups. HR team provides employees with an

atmosphere to revitalize themselves and motivates them to work in a dedicated way. Employees

in turn, help our customers seize opportunities for advancement that come their way.

Recognising efforts MAFIL have improved our Performance Management System (PMS) to

monitor employee productivity and set clear performance benchmarks. HR systems measure

yields, key performance indicators, customer acquisitions and retentions and have been able to

increase employee trust and commitment. Manappuram’s retention policy promotes internal

appreciation and retention of talent by promoting career growth, a performance based appraisal

mechanism and employee welfare initiatives like provident funds and group mediclaim policy.

01.14 Muthoot Fincorp Ltd.

Muthoot Fincorp Ltd. is 129 year old Group, known as the flagship company and is one of the

substantial NBFCs in India. It is registered with the Reserve Bank of India. They have an

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average walk in of 50,000 customers per day and over 3800 branches across India. Muthoot

Fincorp has a variant blend of sales offerings to cater the needs of its customers including Gold

Loans, Housing Loan, Business Loans, Money Transfer, Auto Loans, Insurance Services, Wealth

Management Services and Foreign Exchange,.

Muthoot Fincorp offers mass financial service in the form of gold loans. Decades of committed

research and experience in rural strongholds have facilitated the Company to provide quick and

personalized finance options and investment schemes for millions of customers who do not have

access to mainstream commercial banks.

The Muthoot Pappachan Group, with a name that has been formed over decades with

extraordinary quality performs, total customer happiness and balanced growth, for over 129

years in the field of this business, is a legacy put up on high values of truth, trust, transparency

and tradition and has become one of the best business houses today.

Muthoot takings its name from its Family, which is a category of a traditional Orthodox

Christian family, based in Kozhencherry, a small town in the former primary state of Travancore.

(Kerala). It was founded in the year 1887 in a small scale level by Muthoot Ninan Mathai as a

whole-sale and retail trader of grains at Kozhencherry. These wholesale goods were largely

delivered to the large Estates owned by British Companies. Later, they understood the un-met

saving needs of the estates staffs, Mr. Ninan Mathai, on a philanthropic motive, started the Chit

Funds business as an opportunity for saving. Initially, it was started just for the workers, but later

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was drifted outside the estate. The business grew gradually and steadily along with its share of

ups and downs.

Muthoot Ninan Mathai entered the gold loan business in the 1950’s functioning in just single

office in Kozhencherry,. They soon went on to become the leading player in Chits & Gold

Loans. Numerous people across Kerala came to Kozhencherry for chits & gold loan. Ninan

Mathew, M. George, M. Mathew and Mathew M. Thomas (Muthoot Pappachan) who were

involved in the business from their childhood and later took over the family business after the

death of their father Muthoot Nina Mathai.

In the year 1979, family partition took place which led to the Origin of Muthoot Pappachan

Group (MPG), the founder was the Late Mathew M Thomas who commonly known as Muthoot

Pappachan. Although the different Muthoot Groups are prevailing in the same businesses, there

exists a healthy competition as well as excellent relationship among the cousins. The Group is

presently managed by the sons of Late Muthoot Pappachan are Thomas John Muthoot (Chairman

& MD), Thomas Muthoot (Executive Director) & Thomas George Muthoot (Director).During

these years, the Muthoot Pappachan Group has emerged to become a substantial entity in the

Indian financial business. "A journey of a thousand miles begins with a single step". True to this

saying, the group which originated its grounds in retail trading, later expanded into various

segments including Financial Services, Automotive, Hospitality, Realty, Healthcare, IT Services,

Precious Metals, Alternate Energy and Global Services.

Presently MPG is serving over a million customers through its 3800 branches across the country

with 20,000 employees. MPG’s innovation and customer-centric approach in terms of new

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products to cater the changing customer requirements have aided in gaining the loyalty of

numerous customers, plus attracting the new ones. They adopted the latest technology and new

ways to serve customers, without conceding on basic principles and morals which has been

followed since its origin, is what forms the mainstay of MPG.

Muthoot Pappachan Group has developed to embrace mind-boggling proportions. With a

concern for its society, the group established a Public Charitable Trust-Muthoot Pappachan

Foundation (MPF) – it is a CSR body of MPG that has heartened thousands of lives through its

varied programs. The CSR initiatives of MPG are based on the theme HEEL expanding as-

Health, Education, Environment and Livelihood.

MPG has set-up a business without frontiers, where barriers are considered as preceding stones

for success. The Group attempts to conquer the world frontward with determination, sincerity

and commitment the possibilities are infinite.

This forward march of the Company during the Financial Year 2015-’16 on a higher growth

trajectory could be made possible by the enthusiasm and commitment imbued with sense of

zealousness and desire demonstrated by its dedicated employees. New Product Development in

the current situation of NBFCs business in general and the Gold Loan business in particular, it is

essential to identify the necessities of different sectors and based on the same to improve and

implement new products or to make advancements in the existing products on a regular basis.

Company has implemented a market segmentation method in that it aims specific customer

segments in the market to address their requirements. Two such products, namely Muthoot

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Special Gold Loan and Special 16 began last year to retain the Customers who had changed

preference to Banks, have acknowledged wide recognition and are holding visible AUM now.

Company has developed a range of Gold Loan products in FY 2015-’16 with wide-mix of

Interest Rate, Processing Fee, LTV Tenure, Repayment Frequency. Based on the market

requirement, Company has launched in Financial Year 2015-’16 dissimilar Gold Loan Variants

such as: Samudra: This product was launched in the Kanyakumari district Branches, targeting

the price cognizant Customers when there was a wide range campaign by the Competitors with

their Low Interest –Maximum LTV products. Fortified by the success of its Kanyakumari

launch, this Variant was later extended to other market segments and is holding substantial AUM

now. Dhinam: A personalized-designed product intended for self-employed and business class

with the unique feature of Door Step Collection Facility. A Gold Loan designed for high value

pledge Customers with the non-changeable interest rate for six months. Choice: This is a Gold

Loan to encourage the farmers in selected locations where agriculture is the predominant

activity. This Variant provide a rebate to those who make prompt interest payment at the end of

the harvest period of six months. One Plus: This is the latest product introduced in the FY 2015-

’16 targeting the price conscious Customers in the market. This was introduced on specific

demand from the market for a lower interest – maximum LTV product. Special 16 Redesigned:

This Gold Loan Variety, initially launched for a specific range of loan ticket size later redesigned

in the Financial Year 2015-’16 with an higher loan limit has also shown good response from the

market which lead to considerable growth in AUM. Capital Assist: Considering the opportunities

in the Online market space in the FY 2015-’16 the Company has tied up with one of the most

prominent online market players and introduced loan products matching to meet the fund

requirements of sellers in the Online platform. Disbursements under this product have

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commenced. Company had ventured into the non-gold collateralized retail loan business in the

FY 2015-’16 with the introduction of Suvidha and SME loans, collectively known as

Neighborhood Loans which have received very good response from Micro and Small segment of

MSME Sector. The total disbursement under these products since launching is around `250

crores. In response to the various feedbacks from the market, a few improvements were made in

the products to make them suitable to the market requirements. Company has also started

mortgage loan business in the FY 2015-’16 through Loan Against Property (LAP) in selected

locations. The Company’s constant endeavor to identify the market needs and to offer innovative

solutions to the Customers will continue. Credit to Micro and Small Sector Entrepreneurs

Persons in this Sector do not generally have collaterals to avail bank finance; adequate and

timely credit at reasonable cost is, therefore, a critical problem faced by them; they do not have

enough gold collateral to avail gold loan either. Company has, therefore, conceived two kinds of

short term loans with the facility of collection of Equated Daily Instalments (EDIs) at the

borrowers’ doorstep- viz., SME loan and Suvidha loan IT Structure of the Company, has made

great strides in the use of information technology by achieving quantum milestones in project

completion as well as in launching new projects in an effort to drive towards quality enabled

enterprise digitalization. Integrated Loan Management System which offers unified system for

major loan products of the Company, facilitating 360 degree view of the Customer, has been

successfully implemented in Traders Flexi Gold Loan product and is now ready for relaunch.

Key modules of the Enterprise Resource Planning solutions have been successfully implemented

in the Head Office and in all branches. As part of the Integrated IT Infrastructure project, fail

safe secure network connectivity to the branches has been successfully implemented. Key

Servers have been moved to a state of the art Data Centre in Bangaluru with back up Servers in

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duel back up locations (Head Office and Ctrls Hyderabad). To ensure business continuity to

committed RTO (recovery time objective) RPO (recovery project objective) disaster recovery

process is being implemented.

First phase of the HRMS, an in-house soft-ware that manages the entire workforce management

has been successfully implemented with biometric attendance system. Muthoot Fincorp Ltd. has

been authorized by UIDAI to be the KUA (KYC User Agency) of Aadhaar which enables access

to their database for KYC information. This helps in speedy KYC verification (with respect to

Aadhaar database) and a faster, accurate acquisition of customer information. The key

application has also been integrated with Transunion, which enables further KYC verification of

the Customer with respect to databases of CIBIL, Voters ID, PAN Card etc. This helps in

improved Customer credit assessment and quicker decision making process. In an effort to

ensure quality IT service delivery, KPMG has been engaged to carry out Information System

audit within Muthoot Fincorp Ltd and they are in the final stages of conducting compliance

audit. The Company has engaged Gartner Inc., world’s leading information technology research

and advisory Company, to be the advisory 17 partner in our journey towards enterprise-wide

digitalization.

01.14.01 HR Initiative

Defining Human Resources Development Road Map the Company has adopted a very

pragmatic and balanced people strategy to create a composite and responsible HR culture in the

Company that can drive growth and also adequately face various challenges of the current times.

A comprehensive HR Strategy and Frame work has been drawn up to take care of all these

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challenges in an integrated manner. Company has taken a major step to develop next line of

leaders for the future. Organisational Development and Training For preparing the employees for

the future and to address the ever increasing needs of business growth, the Organisational

Development Department of the Company is continuously engaged in training the employees,

updating them with the products, processes, recent changes in the financial sector, the regulatory

requirements and behavioural aspects. The Department compulsorily conducts minimum three

training programmes in a financial year for each employee, on two products and related

processes and one on behavioural training. With the firm conviction that “investment in human

capital is one of the most valuable assets,”

Company has launched: Learning Management System (E- Learning Modules) A compulsory

on-line learning module for employees at all levels, comprising daily materials, Circulars,

courses on products and process and behavioural aspects. Shubharambh It is a daily learning

series called “Daily materials” on products and processes and on topics related to their work.

Everyday learning is reinforced through monthly assessment, the scores of which are renewed.

Continuous Business Enhancement Programmes (Refresher Training). This is a continuous

Learning Programme designed to keep the employees abreast with the changing trends and

advancements in various products, processes and statutory requirements through Classroom

training. Soft Skills and Behavioural Training Envisaged for the employees of the level of

Branch Manager to the level of Regional Manager, Sessions were held on Motivational

Management, Developing Leadership Skills, Role transition and Management Skills. Corporate

Governance the Company is committed to sound Corporate Governance practices, grounded on

the bed rock of highest level of accountability, transparency and integrity in all spheres of its

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operation and in all its dealings with stake holders - viz. the Shareholders, Employees,

Customers and Bankers - and high ethical standards in the conduct of business. The Company is

firm in its commitment in promoting best Corporate Governance practices and strives to live up

to Shareholders’ expectations. The thrust of the Corporate Governance of the Company is to

enhance shareholder value and enhancing as also maintaining the wealth of the Company by

pursuing ethical practices in the conduct of its business and maintaining high standards of

disclosure and transparency.

HR is committed to excellence in action through the development, delivery and administration of

opportunities for staff that helps to attract, retain and develop a diverse workforce in support of

the Muthoot Fincorp Ltd.’s (MFL) mission. It also created an environment that allowed all its

employees to utilize their full potential. The Department remains committed to work proactively

with the diverse workforce in identifying and responding to its changing needs. MFL aims in

building the capacity and capability of its people, help them acquire high level of skills and

expertise to realise their full potential. An addition of 7,830 employees were made during the FY

(including the fresh and replacement hiring), taking the total employee base to 18,113 as on 31-

Mar-2014. The Leadership Development Programme (MP – LDP) has advanced to its

succeeding edition the year and has helped in acquiring the young and best potential talents from

top B-Schools based in South India. The pioneering MP-LDP batch which was launched in 2013

has now been nurtured by the expert panel of MPG mentors, imparting them with live business

scenarios and projects along with the CSR activities of the MPG. In continuation of the objective

of providing steady pipeline of talent in sync with their business needs, the Rural Campus Talent

Acquisition Programme has been continued by partnering with a wide network of educational

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institutions across the country. The Department continued to implement the new versions of e-

HR application i.e. Muthoot Pappachan People Connect which has helped MFL in automation of

its HR transactions. It also helped in streamlining the processes and reduced processing time.

Employee recognition has been a critical component of the strategy of the Department.

Understanding the value of the employees’ contributions, the Department provided Internal Job

Progression and Cross Pollination for its employees at regular level.

Human Resources and benefits Short Term Employee Benefits for services rendered by

employees are recognised during the period when the services are rendered POST

EMPLOYMENT BENEFITS Defined Contribution Plan Provident Fund/ESIC Contributions are

made to Employees Provident Fund Organisation in respect of Provident Fund, Pension Fund

and Employees Deposit Linked Insurance Scheme at the prescribed rates and are charged to

Statement of Profit & Loss at accounts Defined Benefit Plan Retirement benefits .The company

has provided for gratuity benefits payable to its employees based on actuarial assessment done in

accordance with Accounting Standard 15 ‘Employee Benefits’ by Institute of Chartered

Accountants of India. Earned Leave benefits The company has provided for earned leave

benefits payable to its employees based on actuarial valuation done in line with Accounting

Standard 15 – ‘Employee Benefits’ issued by Institute of Chartered Accountants of India.

01.15 What’s in favour of Gold Loan NBFCs?

Though this regulation would hit hard both the revenue as well as bottom-line of the NBFCs,

there are still certain positive aspects to it: NBFCs would continue to enjoy the niche segment

advantage due to its deep presence in the gold loan market. At present, NBFCs have a 32% share

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of the total gold loan market. The size of the gold loan market is still to grow bigger in coming

days since the gold loan would still be cheaper than the personal loan.

There are many untapped areas where NBFCs could have a better reach than the banks. The

benefit of hassle free and fast loan processing by NBFCs would give them the advantage over the

banks. NBFCs can raise funds through market borrowings, i.e. commercial papers to lower the

cost of the fund.

The RBI move would create a gap between bank and NBFC gold loan operations. The banks are

expected to make an aggressive take over on the gold loan segment in the absence of a strong

NBFC presence. In the current scenario, RBI’s recent regulations have hit the top as well as

bottom-line of the NBFCs. In India, gold buying is a regular process, and people are expected to

continue their inclination towards gold in the future. The regulations may negatively affect the

gold loan business in the short term for NBFCs but in the long term, the overall gold loan market

is set to grow as long as the demand for gold is growing in the country, and NBFCs just need lay

the foundation to pick up the pace again and devise ways to cater to their customer base in an

innovative manner. Gold loan NBFCs growth prospects of last ten years are mentioned in the

following table

Table 01.02 Business Performances of Gold Loan NBFCs

No of branches Total AUM 2007 2012 2016 2007 2012 2016

Muthoot Finance 500 3600 4400 14 billion 246 billion 365 billion

Manappuram Finance 401 3300 3300 8.1billion 142 billion 181 billion

Muthoot Fincorp 209 1890 3699 5.7 billion 108 billion 197 billion

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01.16 Policy Level Gaps

A 2009 study about the gold loan market in India titled Gold Loans Market in India 2009, by

ICRA Management Consulting Services (IMaCS), highlighted the following facts:

India is one of the largest gold markets with an annual demand of around 700 tonnes As of 2009,

Gold stock in India is estimated at around 15,000 tonnes which translates into 10% of the total

global gold stock. (Update: A widely reported November, 2010 estimate by the World Gold

Council puts it at 18,000 tonnes representing 11 percent of the global stock.) The value of gold in

private hands is estimated at around 60 percent of total bank deposits. Rural India is estimated to

hold around 65% of total gold stock Organised gold loans market in India is estimated at around

Rs. 22,000 -27,000 crores with a CAGR of ~38% from FY02-09 .Organised gold loans portfolio

translates into a marginal 0.12% of the value of total gold stock in India

The report notes that while the broader market continues to be grossly under-penetrated, the

organized gold loan sector (mainly Scheduled Commercial Banks and NBFCs) has grown at a

CAGR of 38 percent from about Rs.2.500 crores in FY 2002 to about Rs.25,000 crores in FY

2009. And within the organized sector, NBFCs specialized in gold loans have grown the fastest.

While the IMaCS report talks of a CAGR of approximately 38 percent for the organised gold

loans market in India between fiscal years 2002 to 2009, the fact is, high growth rates were

maintained till the end of fiscal year 2012. During this high growth phase, the gold loan sector,

particularly the NBFCs, attracted the attention of the media and doubts began to be expressed

about the sustainability of such growth. In fact, fears began to be expressed about a bubble

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emerging in the gold loan market. Consequently, in March 2012, the RBI was prompted to

intervene with strict measures aimed at containing risks to the financial system that also had the

effect of curbing the growth of the sector. RBI immediate concern was about systemic risks from

the top three gold loan NBFCs which together accounted for assets under management of nearly

Rs.50,000 crores financed to a large extent by borrowings from the banking sector. The key

measure introduced by RBI was a cap of 60 percent on the maximum loan to value ratio for gold

loans extended by the NBFCs.

From this point onwards, the business of the gold loan NBFCs depicted a falling trend with

growth rates slipping into the negative territory. Moreover, after nearly 12 years of a steady

upward march, the price of gold began to retreat from its highs in the year 2012 after 12

uninterrupted years of gain. From USD 1,746.58 (per troy ounce) in October 2012, it had

declined to USD 1,539.09 at the end of March 2013. Further, in two tumultuous trading sessions

in April 2013, the price of gold crashed from USD 1,561 on April 11 to USD 1,477 on April 12,

and then further to USD 1,334 on April 15, 2013. Historically, the bull run in gold began from

levels of $255 in August 1999 and it hit a record intraday high of $1,921.41 in September 2011.

Since then, the overall trend has been downwards and on 12 April 2013, gold entered bear

market territory (defined as a fall of 20pc or more from its peak) when the spot gold price

dropped below $1,500. The weak trend has been maintained since then and currently the price of

gold in the international market trades in the range of US$ 1200 to US$1300.

The correction in gold prices aggravated the woes of the gold loan NBFCs. Instances of defaults

increased and the realisation from the subsequent auctions was often not adequate to cover the

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principal plus the accumulated interest. Accordingly, loan losses and provisions have increased

and profitability has been eroded. This is in contrast to the situation prevailing during the high

growth phase up to 2012 when increasing gold prices ensured that defaults were low, and in the

instance of default, the proceeds from auction of the security were usually more than adequate to

cover the principal plus accumulated interest. During this boom phase, gold loan NBFCs were

reporting high levels of profit and it gave rise to a misimpression among some sections of the

policy making establishment that these profits were made by exploitative lending practices,

particularly high interest rates.

In retrospect, it is clear that the high profitability of this period was on account of sustained

increase in the price of gold which had an impact at two levels.

a) Impact on business volumes

The gold loans business is not generally dependent on the price of gold. After all, people borrow

only because they have needs and these needs are always independent of the current price of the

gold in their possession. At the same time, in a scenario of rising gold prices, gold loans do well

because it would compare favourably with other loans. When prices fall, the eligible loan amount

falls proportionately, and gold loans become somewhat less attractive. It can happen that some

borrowers would resist having to settle for a lesser loan amount than before. Consequently, in a

scenario of rising prices, the gold loan business is likely to see accelerated growth rates.

b) Loan losses contained

All lending businesses face the risk of loss when there are defaults. In secured lending, it often

happens that when the security is encashed, the proceeds are not adequate to cover the

outstanding loan which puts the lender to a loss. However, in the case of gold loans, a scenario

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of rising prices helped to contain the price risk in the event of default. During this extended

period of increasing gold price, the proceeds from auction were generally sufficient to cover the

outstanding loan amount (including accumulated interest) and the gold loan business was kept

shielded from price risk.

Against this backdrop, the impression that gold loan NBFCs were reporting abnormally high

levels of profit by exploitative lending practices was clearly mistaken. The reality had more to do

with the unexpected bonanza offered by the long term bull market in gold. Once gold prices went

into a correction phase, profitability levels have suffered.

Consequently, policy measures that were put in place during a time of increasing gold prices

have begun to reveal inadequacies and weaknesses at multiple levels now that gold prices show a

downward trend. These policy level gaps need to be addressed going forward.

A “policy level gap” in this context may be defined as policy measures that ultimately produce a

sub-optimal outcome such that either the stated goal of the policy measure is observed to be at a

variance compared to the actual outcome or when the outcome is observed to have a negative

impact on the wider economy (even when outcome adheres to the stated goal). From a

regulator’s perspective, it is clear that there is always be a trade-off between the need to foster

growth of the industry and the level of risk considered acceptable in order to achieve the desired

growth. However, when policy measures are excessively weighted in favour of containing risk,

growth suffers to the extent that the industry can go into terminal decline with negative impact

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on the overall economy. Therefore, in the matter of regulation, striking the right balance between

promoting growth and containing risk is of the essence.

Going beyond gold loans, it is also clear that the official policy in India has been to favour the

banks at the expense of the non-banking financial companies (NBFCs). For example, in recent

years, the government has launched a campaign to promote financial inclusion which has the

goal of extending availability of financial services at affordable cost to the marginalised sections

of society. However, the implementation of financial inclusion has largely excluded the NBFCs

despite the many advantages that NBFCs possess in the matter of the ability to service low-

income and last mile customers. Therefore, the policy level gaps in respect of NBFCs vis-à-vis

banks are also considered at length in this section.

01.17 Policy Level Gaps: NBFCs, Gold Loans and Financial Inclusion

Financial inclusion is today understood as the delivery of financial services at affordable prices

to the poorest sections of society. While India’s banking sector has done well of late, a sizeable

section continues to be excluded from even basic banking service.

It’s a fact that our quest for financial inclusion led by the banks has been a slow process and

many people continue to lack access to the formal financial sector. Further, based on the

evidence so far, there is also need to consider redefining financial inclusion away from the mere

delivery of financial services and towards inclusion in the wealth creation process. Such

inclusion happens when disadvantaged beneficiaries are able to stand on their own feet by setting

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up and sustaining their own micro-enterprises, or by acquiring the skills and health to better their

chances of gainful employment.

In an article titled “Role of NBFCs in Promoting Inclusive Growth” published in FICCI

Financial Foresights (Vol.3, Issue 5, Q4 FY 12-13), Ms. Bindu Ananth, President, IFMR Trust,

argues strongly in favour of increased role for NBFCs in the national quest for financial

inclusion. She makes the following important points:

Policy thrust has been strongly dis-incentivising banks from partnering with NBFCs

and instead has been continuing to nudge banks to open their own branches and

originate assets through their own staff and agents (despite well-known operating

challenges and serious issues with asset quality.)

Banks and NBFCs must be seen as carrying out complementary roles rather than be

considered as entities in conflict with each other.

Their local presence close to customers enables NBFCs to deliver financial services

that respond to felt customer needs and also better monitor their portfolios.

Non-deposit NBFCs are almost entirely reliant on the bank market for wholesale

funds and therefore are effectively natural extensions of commercial banks, even for

credit. The role of large commercial banks, given their size and capitalisation, can be

seen as “aggregators” responsible for managing large credit portfolios that are in turn

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originated by several specialised NBFC originators who are de-facto closer to the

customer.

If NBFCs can be seen as natural intermediaries between banks and unbanked

populations, then the bank can decide which NBFCs it wants to engage with through

an internal process of due diligence, as well as through first loss default guarantees

provided by the NBFCs.

While there is concern about systemic risks in NBFCs (lacking safety features such as

CRR/SLR/ Deposit insurance), it may be also be kept in mind these are non-deposit

taking NBFCs. Therefore, given this design feature, the fact that they are inherently

more risky with local concentration features should be acceptable.

In the absence of public deposits, NBFCs depend on banks and the capital markets

for their wholesale funding and these institutions now have the right incentives to

regulate NBFCs- i.e. to ensure that the NBFCs are well run in order to lend to them.

In addition, the prudential norms for capital (15% CRAR) and governance laid out by

the RBI provide comfort and serve as useful benchmarks for further quality

assessment by investors.

NBFCs can thus be innovators and risk takers that cushion banks from credit losses

and costs arising from newer businesses through their additional capital and their

lower cost delivery structure.

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01.20 Policy Level Gap: Cap on the Loan to Value Ratio

On March 21, 2012, the Reserve Bank of India issued a circular imposing a cap on the loan to

value (LTV) ratio for gold loan NBFCs at 60 percent of the value of collateral. In its notification,

RBI had referred to the rapid growth of gold loan companies along with a dependence on public

funds, including bank finance and retail NCDs, as reasons for worry. While it was not stated in

these terms, it is clear that the RBI was inclined to consider the rapid growth of gold loan NBFCs

as a bubble in the making. Further, with the gold loan NBFCs focused on a single product, RBI

was also concerned about concentration risks in the business. As the stipulation was applicable

only to the gold loan NBFCs, it offered an undue competitive advantage to the banks and the

unorganised sector.

Subsequently, the RBI had appointed a working group headed by Shri K.U.B. Rao to go into the

entire range of issues related to gold and gold loan NBFCs. The Working Group submitted its

final report in February 2013 and its recommendation that the maximum LTV permitted should

be increased to 75 percent (from 60 percent) was implemented in January 2014. Also,

commercial banks were directed to adhere to this stipulation. With this, the playing field has

been more or less levelled as far as the organised sector is concerned. However, since the writ of

the RBI runs only with the banks and NBFCs (registered with RBI), the vast unorganised sector

consisting of local moneylenders and pawnbrokers is left out of the ambit of this stipulation. In

this way, the RBI may have unwittingly conceded an advantage to moneylenders and

pawnbrokers.

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Of course, from a regulatory perspective, a high LTV is a risk because a correction in the gold

price can lead to a spike in defaults. Such an eventuality, it was feared, would endanger not just

the gold loan NBFCs but also the wider banking sector on which they depend for funds. In

hindsight, there is no denying that the price of gold is volatile and occasionally prone to sharp

corrections as well, as happened in April 2013. At the same time, the industry has clearly learnt

appropriate lessons from recent bouts of volatility and put in place corrective measures. In the

past, bullet repayment of interest and principal was the norm but these days gold loan NBFCs

emphasize regular collection of interest in order to maintain the lending margins. It means they

are now better prepared to weather the effects of future price corrections. Moreover, the narrow

focus on the risk aspect of high LTV gold loans obscures the advantages to the gold loan

borrower.

Against this backdrop, it is relevant to revisit some of the assumptions underlying the RBI’s

action—rapid growth as a cause for concern (being a precursor to a bubble), and worries about

concentration risk—and evaluate whether the concerns and fears were justified or not.

What is “too fast” growth? Is there ever a precise point at which growth rates transition from the

fast to the bubble? It stands to reason that more than the pace of growth, what matters is the

strength of the business model and the sustainability of its growth process. The gold loan

business, it may be said, rests on solid underpinnings.

The oil rich countries of the Gulf are phenomenally wealthy today. About four decades ago, they

were largely deserts. Their economies were transformed by the very rapid growth that followed

the discovery of oil. Take another example, the Information Technology (IT) sector in India. In

two decades, we have emerged from nowhere to become an IT superpower. What is the

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difference here? Quite simply, rapid growth was not a bubble in either of these examples because

there was always a secure foundation to the growth. For the Gulf countries, it lay in the robust

economics of oil where demand has consistently run ahead of supply while India’s IT sector

drew upon its unmatched access to an abundant pool of cheaper and skilled talent. The point,

therefore, is that no matter what or how fast the rate of growth is, what really counts is how

sustainable it is.

Likewise, in India, the gold loan is anchored in our culture and in our enduring affinity for gold

that cuts across divisions of class, community and geography. Our citizens are the largest

hoarders of private gold in the world that is also supplemented every year by the largest imports

of gold. India’s stock of privately held gold is estimated at anywhere from 15,000 to 20,000

tonnes, and our annual imports average around 700 to 800 tonnes every year. In these numbers

are to be seen the strength of the gold loan business model. Despite all the recent growth

recorded by the gold loan companies, the organised sector has so far succeeded only in

scratching the surface of this vast holding. Barely 10 percent of our total gold is in the loan

market, and about thirty percent of it held by the organized market. The rest is controlled by the

unorganised sector. Not surprisingly, there is potential for exceptional growth even today, to be

achieved by weaning away customers from the unorganised sector, as also by adding new ones.

In fact, between 2002 and 2010, the organized gold loan market in India grew at a compounded

annual growth rate (CAGR) of 40 percent.

A bubble happens when trade takes place in high volumes and at prices that are far removed

from the intrinsic value. Gold loan NBFCs appeared to fit the bill because volumes, and

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profitability, had grown exponentially. But contrary to appearances, it was no more than a first-

mover advantage given an extra thrust by technology and innovation. Indeed, it’s likely that even

without regulatory intervention growth would have tapered off as copycats emerged and as

competition intensified.

Some observers have drawn parallels with the sub-prime crisis in America and with the travails

of the micro-finance sector in India to suggest that the gold loan sector is similarly vulnerable on

account of its rapid growth. Home loans are given for extended tenures ranging from ten to thirty

years. For this reason, they were never immune to a sustained downturn in the real estate sector.

A gold loan, on the other hand, is typically repaid within three or four months and would be

vulnerable to a fall in gold prices only when it is both sharp and sudden—of the order of 25 to 30

percent or more, occurring over three to four months. As for comparisons with micro finance, it

ignores the crucial distinction between secured and unsecured lending.

At the same time, it may be noted that lending against used household gold jewellery is unlike

any other commodity lending. It has been consistently observed that people in India bear a strong

sentimental attachment to their gold which is often in the nature of a family heirloom. To the

lender, it serves as a hidden cushion, ensuring repayment rates close to 99 percent even in times

of sharp correction in gold prices. This explains why gold loans are not, indeed cannot be, a big

business in the West or in other countries. Without the emotional connect, gold loans end up like

any other commodity lending, subject to all the attendant market risks.

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01.18 Human Resources

HR is concerned with the people dimension in an organization, hence the trend in organizations to

re-designate Personnel Department into Human Resource Department. The functions undertaken

by HRD are to recruit, select, train and develop employees for an organization. Today with

companies having a global mix of employees, developing an understanding of the employees is a

tough task for the HR Department. Human Resource Management is a process of bringing people

and organizations together, so that their respective goals are met. Indian companies are also

evidencing a change in structures, management arts and philosophy due to the cumulative global

orientation of Indian companies.

As globalization has been a challenging issue for the organization—because international human

resource management has placed great emphasis on number of responsibilities and functions such

as relocation, orientation, translation services to help employees adapt to new and different

environment outside their own country— necessary attention must be paid by HR Managers in

formulating policies, motivation, maintaining the relationship and stressing on quality in

administration. HR does this in a measurable way. HR functionaries need to do a lot of things. In

the end, HR plays the role of initiator, planner and executor in organizations.

Taking a look at the world of human beings is a rewarding experience. Contracts abound in this

world. These contracts remain so despite the passage of time, sweeping political & economic

changes, cultural differences. HR could be the ultimate differentiator in the competitive

marketplaces of the future. But first ”Old HR” must be deconstructed. Great companies have for

years been eliminating wasteful process that don’t move the talent needle in the organization. It is

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critical to challenge historical norms, eliminate bureaucracy, deploy the latest data technology, and

optimize organizational structure, no matter what your job title is, we are all in the HR, because

employees are at the heart of every organizational success.

In early 1900s, HR function known as industrial and labour relation after steel and oil had

transformed business in the 19th century, it become clear that workforce management needs its

own discipline. Later in 1920s in a thriving economy, good workers were hard to come by and

even harder to retain. HR introduced supervisors to treat people well.

During the 1930s, the era of the great depression, supervisors favoured the drive system of

Management (threatening and sometimes even hitting workers) and saw HR as a hindrance.

Workers put up with almost anything to stay employed. Talent development was practically

nonexistent. In the1950s, after the Second World War, Western countries lost 1/3rd of their

executives in the war with no one to replace them. To fill that void, HR created a host of

revolutionary hiring and development programmes.

In the 1970s, as the economy slowed, labour was once again plentiful. Business Leaders started

undoing all those post-war programmes designed to attract and develop talent. Early 1980s, the US

went in to deep recession and workers clung to their jobs. Rather than invest in HR, companies

pushed hiring and developments tasks onto line managers, who had neither the time nor the

training to do it properly.

Late 1990s, during the dot-com boom, companies competed fiercely for employer of choice status

to meet their soaring talent needs. So, HR enjoyed a brief heyday, focusing primarily on hiring and

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retention. From 2001, when the dot-com bubble burst and the economy tanked, business leaders

felt little urgency to attract talent. Productivity rose, wages stayed flat, and HR lost the influence it

had enjoyed during the boom.

Nowadays, with the effects of the great recession of 2008 still lingering, most people with jobs

aren’t jumping ship yet, so executives feel no urgent need for HR programmes. HR has to first

make a case for it and these days HR focuses attention on the following:

1. Policies- HR policies based on trust, openness, equity and consensus.

2. Motivation- Create conditions in which people are willing to work with zeal, initiative and

enthusiasm; make people feel like winners.

3. Relations- Fair treatment of people and prompt redress of grievances would pave the way for

healthy work-place relations.

4. Change agent- Prepare workers to accept technological changes by clarifying doubts.

5. Quality Consciousness- Commitment to quality in all aspects of personnel administration will

ensure success.

It is a true saying that any person who works in the HR Division must be “a people person”.

Employees are human, not products, and HR departments have to start looking them in different

manner. With the current thrust towards strategies that keep employees engaged, attract top talent,

and contribute to the bottom line, this change is crucial. The HR department creates competitive

advantage by building strong organizations, strong leaders, managers, strong teams and employees.

HR Department does this in a measurable way. Some of the modern trends in HR are ,Employee

Committee with Genuine Authority, Database for Employee Suggestions In Implementation

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,Ownership of Business- Job Rotation, Training to learn multiple skills, Open Culture/Caring

Environment ,Hiring The Smartest People, Create Cool, Simple & Yet Highly Efficient

Workforce, Cross Functional Job Rotation, Self Defence Techniques For Women Employees,

Work From Home, Mentorship and Buddy Programme, Encouraging Social Services, Paid Leave

For Social Services, Stock Options, Confirmed Employees From The First Day Of Joining,

Mandatory Training Hours- Any Field of Interest ,Internal Promotions – Non Mgmt To Top

Management Position ,Knowledge Sharing Sessions, Recognize Employee Achievements,100 %

Reimbursement Of Tuition Fees/Examination Fees For Employee Professional Development,

Sense Of Security/Family Taken Care, Working Beyond Revenues, Fast Track Programme For

Promoting Middle Managers, Leadership Programme For Young Managers.Health Café, Yoga

Classes, Stress Management etc.

They need to be measurable contributions to the bottom line through expense reduction or revenue

generation, talent management and risk mitigation to Portray HR as an enabler of business

strategies. HR departments of today need to be talent of tomorrow. At the end of the day,

individual employees do most of the tangible work for organization. HR, however, has always

been overly supportive of and biased towards the managers and the business ideas, leaving the

larger populace with no real recourse.

01:19 Statement of the Problem

The tremendous growth of Indian Non Banking Financial Industry has changed its face with a

decreasing emphasis on human interventions. Many NBFCs are positioning themselves as a

single-stop shop of financial service provider with a fairly exhaustive range of products,

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including loan against collaterals, Short term Loans ,Loan against Property, Micro finance

,Home finance, depository services, investment advice, bill payments, Money Transfers ,Forex

White label ATMs, loan against Commercial Vehicles and Light Motor Vehicles and various

transactional services. In addition, the NBFCs have entered into the business of selling third-

party products such as Mutual Funds and Insurance to the retail customers. These days improved

technologies are being followed by the NBFCs for upgrading their work methods, work norms,

technical and managerial skills, and employees‟ motivation to face the fast emerging challenges,

both in the manufacturing and service sectors. Technology has become one of the biggest drivers

of change as it has been transforming today’s banking .Now, there is a shift from 'Brick and

Mortar' branches to 'Click and Portal' banking. And in order to provide their customers more

flexible and convenient services as well as to reduce servicing costs, NBFCs have been investing

huge amounts to computerize their branches and at the same time, the NBFCs are putting greater

emphasis on the management of their Human Resources.

The need for sound and effective HRM policies and practices for the sake of organizations as

well as personal development is being felt strongly at every level. HR practices are evolving

along with business expansion, with bigger NBFCs having better practices while the others are

trying to catch up. Most of the NBFCs facing high attrition at field-level while the larger NBFCs

facing attrition even at Supervisory and High Officials level. Some of the major reasons are

transfer and posting policy, lack of career progression etc NBFCs are investing huge amount of

money for Training and Development purpose .They are using the best technology and imparting

the soft skill training to their employees resulting the passion in the customer service and

customer retention. Most of the bigger NBFCs are imparting structured induction programme

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for new employees before they are placed in the field, for on-the-job training. Refresher

programmes are also conducting at field level and it is conducting on a regular basis. Similarly,

values and processes of the organization is drilled into the field staff by conducting training and

programmes each year. Bigger NBFCs have the training setup at their apex level as well as the

field level.

Multi-skilling field staff to equip them to do multiple tasks, and also developing trainers in the

system—are other needs that have been identified. Absence of the best HR practices and Job

security are the biggest HR Challenges of the NBFCs in the modern era. Most of these NBFCs

are trying to retain its talents by offering the good packages such as ESOPs and Profit sharing

etc.

01:24 Objectives of the Study

The objectives of the study are as follows;

1. To identify and understand the HR practices followed by the Gold Loan NBFC’s.

2. To Study the HR Challenges and best HR practices in Gold Loan NBFC’s.

3. To Study the employee job satisfaction and work life balance with regards to the HR

practices followed by Gold Loan NBFC’s.

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CHAPTER - II

REVIEW OF LITERATURE

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Sl No. Title No of Literature Studied

1. Manpower Planning -04-

2. Recruitment and Selection -08-

3. Training and Development -06-

4. Succession Planning -07-

5. Performance Management -05-

6. Employee Motivation -05-

7. Employee’ engagement -05-

8. Employee Grievance handling -05-

9. Company Vision ,Mission -05-

10. Job Satisfaction -06-

11. Employee Relations -06-

12. Employee Work life Balance -06-

13. Employee Reward System -04-

Total Reviews -72-

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CHAPTER TWO

REVIEW OF LITERATURE

02.0 Introduction

02.01 Manpower Planning

Manpower Planning is also called as Human Resource Planning. Manpower planning is the

process of estimating or projecting the number of personnel required for a project (with different

skill sets) over a predefined period of time.

Manpower planning also includes the details like how and when will new employees be

acquired. This whole process is done keeping in view the goals of the organization, the future

predictions for business and changing technology trends. This helps the organization be prepared

for the future with the correct manpower at their disposal for business prosperity.

Reilly, (1996) Manpower planning is a process in which an organisation attempts to estimate the

demand for labour and evaluate the size, nature and sources of supply which will be required to

meet that demand.

Bechet (2000) believes that the traditional approach to Manpower planning - taking the practice

as part of an annual planning process, defining future needs for the planning period using a

template at a common level of detail based on common planning parameters and then combining

these to create an overall picture of needs – is not working and proposes taking a different

approach. According to him, workforce planning would benefit from being more pragmatic. The

objective needs to be changed so that it is seen as building a context for decision-making, not

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predicting the future. Part of the reason manpower planning went out of favour in the 1980s was

because it failed to predict the downturn in the economy.

Goel (1989) discusses the nature, meaning and ingredients of manpower planning to ensure

optimum performance and satisfaction among the hospital personnel. He has pointed out that an

important operational objective for the future is, therefore, to improve personnel systems,

develop manpower planning and expand the opportunity for education and training of personnel

in the hospitals to achieve the goals of hospitals, as it is the human capacities which transform

the resources into active agent of production.

John (2008) elaborated that usually a five step process is used for creating a linkage between HR

or workforce planning and departmental planning to regulate the current and future requirements

and demands of the human resource. These steps include:

1. Determination of business goals.

2. Environmental Scanning (that includes a workforce analysis, and an internal and external

scans as well).

3. Performing gap analysis.

4. Deciding HR priorities.

5. To measure, monitor, and report the progress.

To establish HR priorities is the main reason for listing the steps above involved in creating a

linkage between HR or workforce planning and departmental and strategic planning.

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02.02 Recruitment and Selection

Recruitment is a positive process of searching for prospective employees and stimulating them to

apply for the jobs in the organisation. When more persons apply for jobs then there will be a

scope for recruiting better persons.

The job-seekers too, on the other hand, are in search of organisations offering them employment.

Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. In

simple words, the term recruitment refers to discovering the source from where potential

employees may be selected. The scientific recruitment process leads to higher productivity,

better wages, high morale, reduction in labour turnover and enhanced reputation. It stimulates

people to apply for jobs; hence it is a positive process.

Dhar (2001) assessed recruitment and promotion policies, merits and competence, performance

appraisal and motivation, morale and commitment. He suggested the following.

1) Recruitment and promotion policies to be reviewed time to time.

2) Merits and competence should be given greater emphasis in promotion.

3) Performance appraisal system to be modified and undertaken time to time.

4) Motivation, morale and commitment and sense of belonging and involvement of employees at

all to level should be enhanced.

According to Burack (1985) recruitment sources are closely linked to the organizational

activities as performance of employees, employee turnover, employee satisfaction, employee

wishes and the commitment of the organization.

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These recruitment and selection process should be done at each and every sector for fulfilling

their organizational goals (Nartey, 2012).

Barber (1998) defines Employee recruitment as “practices and activities carried on by an

organization for the purpose of identifying and attracting potential employees”. Many large

corporations have employee recruitment plans that are designed to attract potential employees

that are not only capable of filling vacant positions but also add to the organization’s culture.

According to Costello (2006) recruitment is described as the set of activities and processes used

to legally obtain a sufficient number of qualified people at the right place and time so that the

people and the organization can select each other in their own best short and long term interests.

According to Montgomery (1996) is on matching the capabilities and inclinations of

prospective candidates against the demands and rewards inherent in a given job.

Jovanovic (2004) said recruitment is a process of attracting a pool of high quality applicants so

as to select the best among them. For this reason, top performing companies devoted

considerable resources and energy to creating high quality selection systems. Due to the fact that

organizations are always fortified by information technology to be more competitive, it is natural

to also consider utilizing this technology to re-organize the traditional recruitment and selection

process through proper decision techniques, with that both the effectiveness and the efficiency of

the processes can be increased and the quality of the recruitment and selection decision

improved.

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Odiorne (1984) indicated that the quality of new recruits depends upon an organization's

recruitment practice, and that the relative effectiveness of the selection phase is inherently

dependent upon the caliber of candidates attracted. Effective recruitment and selection is reduced

labour turnover and good employee morale. Recruiting ineffectively is costly, since poor recruits

may perform badly and/or leave their employment, thus requiring further recruitment. In a cross

national study of recruitment practices, suggests that, in reality, recruitment practices involve

little or no attempt to validate practices. Personnel managers tend to rely on feedback from line

managers and probationary periods and disciplinary procedures to weed out mistakes. Firms with

high quit rates live with them and tend to build them into their recruitment practices and they do

not analyze the constitution of their labor turnover. A number of recent studies have suggested

that some recruitment methods are more effective than others in terms of the value of the

employees recruited

02.03 Training and Development

Training constitutes a basic concept in human resource development. It is concerned with

developing a particular skill to a desired standard by instruction and practice. Training is a highly

useful tool that can bring an employee into a position where they can do their job correctly,

effectively, and conscientiously. Training is the act of increasing the knowledge and skill of an

employee for doing a particular job. Dale S. Beach defines training as ‘the organized procedure

by which people learn knowledge and/or skill for a definite purpose’. Training refers to the

teaching and learning activities carried on for the primary purpose of helping members of an

organization acquire and apply the knowledge, skills, abilities, and attitudes needed by a

particular job and organization.

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According to Armstrong (2001), “Training is systematic development of the knowledge, skills

and attitudes required by an individual to perform adequately a given task or job”.

According to Flippo (1984), “Training is the act of increasing knowledge and skills of an

employee for doing a particular job.

The principal objective of training is to make sure the availability of a skilled and willing

workforce to the organization. In addition to that, there are four other objectives: Individual,

Organizational, Functional, and Social. • Individual Objectives – These objectives are helpful to

employees in achieving their personal goals, which in turn, enhances the individual contribution

to the organization.

Organizational Objectives – Organizational objectives assists the organization with its

primary objective by bringing individual effectiveness.

Functional Objectives – Functional objectives are maintaining the department’s

contribution at a level suitable to the organization’s needs.

Social Objectives – Social objectives ensures that the organization is ethically and

socially responsible to the needs and challenges of the society.

Pereira (1985) studied Larsen and Tourbo’s (L & T), human resource development system. L &

T introduced an integrated human resource development system before 1985. He traced process

and history of human resource development system (HADS) and changes in it. They covers

performance appraisal, training and organizational development. He pointed out that HRD

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department is now separated from the personnel department, critical attributes required for the

job have been identified and the organization is heading towards the establishment of potential

appraisal system.

Raman (1992) study the HRD experiences of State bank of India, especially training and he state

that the training philosophy of SBI as follows. “Training in SBI is a pro-active, planned and

continuous process as an integral part of organizational development. It seeks to impart

knowledge, improve skills and reorient attitude for individual growth and organizational

effectiveness.”

Pattanayak (1997) evaluate training in the Indian industries and observed that- 1. About 70

percent of the trainees felt that depth of training material and training itself was not enough. 2.

Almost 55 percent respondent felt that attitude towards their job after they attend training

programme not changed much. 3. Almost 70 percent respondent responded that their supervisor

shows the moderate interest when they return from training

Rizvi (2011) expressed with citations that greater attention is paid to training related aspects

because of rapid development of the human development theory. Investment in human capital is

any activity, leading to the improvement in the worker’ quality (productivity) therefore training

is an important part of investment in human capital. It refers to the knowledge and training

persons require and undergo for increasing their capabilities for performing activities, have

economic values. Studies have shown the importance of training for workforce hence

investments in training are very desirable, from both a personal as well as a social perspective,

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while the lack of training of workforce is related to low competitiveness. Human capital is

creating expenditure in research and development (R&D), a motivating source to workers, and

boosting up their commitment and eventually paving way in general to generate new knowledge

for the economy and society so, greater productivity and higher salaries are related with greater

stock of human capital. Human capital is also a precious asset for small businesses, and related

positively with performance of business.

02.04 Succession Planning

Succession planning is the means by which an organization prepares for and replaces managers,

executives and other key employees who leave their positions, and is critically important to the

organization’s continued and future success.3 It includes processes such as how the organization

identifies and recruits successors, how it manages transitions from one executive to another and

how it develops successors. Succession planning can also involve identifying “high potential”

employees and including them in special training and development for future management roles.

The practice of succession planning is key to sustaining an organization’s initiatives and

performance and to ensuring it meets its mission even in the face of turnover.

Holbeche (2004), hints that besides recruitment, efforts to retain qualified employees should also

be considered as a part of an overall career management strategy – driven by the business

strategy.

Taylor (2002) identifies three types of planning that aim at achieving practical goals and

objectives of organisation. (1) Microplanning deals with forecasting supply and demand for

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specific groups. (2) Contingency planning covers the situation where possible scenarios are

examined and the implications assessed before major decisions are taken. (3) Succession

planning is a third type that focuses on manpower planning activity such as recruitment and

development of employees in order to fill managerial and top positions.

Collins (2009) defines succession planning as “a process that can provide seamless leadership

transition across the organization”.

Strategic, systematic and deliberate effort to develop competencies in potential leaders through

proposed learning experiences such as targeted rotations and educational training in order to fill

high-level positions without favouritism (Tropiano, 2004).

In the words of Charan et al. (2001) succession planning is perpetuating the enterprise by filling

the pipeline with high performing people to assure that every leadership level has an abundance

of these performers to draw from, both now and in the future. From this perspective, succession

planning is seen as management pipeline that accelerates management performance over a period

of time. Charan’ definition looks into the future and this probably influences.

Scharmer (2007) asserts that succession planning is co-creating, a transformational stage during

which management explores the future.

Succession planning is organized process comprising the identification and preparation of

potential successor to assume new role (Garman & Glawe, 2004).

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02.05 Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance appraisal is

generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.

2. The supervisor analyses the factors behind work performances of employees.

3. The employers are in position to guide the employees for a better performance.

Keye (1984) studied relationship between performance appraisal and career development and

shown that both performance appraisal and career development have potential for developing

human resources; potential that can be increased by linked them together to meet the needs of the

both individual employees and the organizations.

Rao (1982) conducted a survey for knowing performance appraisal of human resource

development function in Indian organization. This study shows that monitoring the human

resource development implementation in public sector organizations scored slightly better than

the private sector while the reverse seems to be true on human process reserved.

Verughese (1989) studied Crompton Greaves Ltd. (CGL). He observed that task force identified

role analysis, performance appraisal and counseling as 73 there priority areas were suggested by

company’s consultant and that was implemented by company. The study indicates a high degree

of commitment towards HRD and climate diagnostic survey was conducted and used/adopted

periodically.

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Performance Appraisal (PA) usually involves ―evaluating performance based on the

judgements and opinions of subordinates, peers, supervisors, other managers and even workers

themselves (Jackson & Schuler, 2003).

According to Lardy and Robbins (1994), PA as a process of enhancing human performance has

attracted the attention of both academics and practitioners.

02.06 Employee Motivation

Internal and external factors that stimulate desire and energy in people to be continually

interested and committed to a job, role or subject, or to make an effort to attain a goal.

Motivation results from the interaction of both conscious and unconscious factors such as the;

(1) Intensity of desire or need,

(2) Incentive or reward value of the goal, and

(3) Expectations of the individual and of his or her peers.

According to Guay et al., (2010), motivation refers to “the reasons underlying behavior”

Paraphrasing Gredler, Broussard and Garrison (2004) broadly define motivation as “the

attribute that moves us to do or not to do something. Intrinsic motivation is motivation that is

animated by personal enjoyment, interest, or pleasure.

As Deci et al. (1999) observe, “intrinsic motivation energizes and sustains activities through the

spontaneous satisfactions inherent in effective volitional action. It is manifest in behaviors such

as play, exploration, and challenge seeking that people often do for external rewards

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Herzberg (1959) developed a well known motivation theory, namely the Two-Factor Theory; he

distinguishes in his theory between motivators and hygiene factors. Important is that factors are

either motivators or hygiene factors, but never both. Motivators are intrinsic motivational factors

such as challenging work, recognition and responsibility. And hygiene factors are extrinsic

motivational factors such as status, job security and salary (intrinsic and extrinsic factors are

further described in the next paragraph). Motivating factors can, when present, lead to

satisfaction and hygiene factors can, when not present, lead to dissatisfaction, but the two factors

cannot be treated as opposites from each other. Herzberg defines motivation in the workplace as:

performing a work related action because you want to. Below, in figure 2.1, a table is presented

with Herzberg’s motivators and hygienes. As seen in the figure, motivators are intrinsic

conditions to the work itself and hygienes extrinsic conditions to the work.

Motivators (leading to satisfaction) Hygienes (leading to dissatisfaction) Achievement Company

policy Recognition Supervision Work itself Relationship with boss Responsibility Work

conditions Advancement Salary Growth Relationship with peers Security Figure 2.1; Herzberg’s

Two-Factor Theory The Two-Factor Theory of Herzberg (1959) is related to Maslow’s (1943)

theory of motivation, named Hierarchy of Needs. Maslow (1943) states in his need-hierarchy

that there are at least five sets of goals, which are called the basic needs, namely: physiological,

safety, love, esteem and self-actualization. And “we are motivated by the desire to achieve or

maintain the various conditions upon which these basic satisfactions rest and by certain more

intellectual desires” (Maslow, 1943). When the first, physiological, need is satisfied the next

“higher-order need” has to be satisfied. Maslow distinguishes between lower- and higher-order

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needs; the lower-order needs are physiological, safety and love and the higher-order needs are

the last two. Lower-order needs have to be satisfied in order to pursue higher-level motivators

along the lines of self-fulfilment (Maslow, 1943). However, the five needs differ in type of

motivation, e.g.: self actualization is intrinsic growth of what is already in the organism, or more

accurately of what is the organism itself (Maslow, 1970). Maslow (1943) argues that self-

actualisation is absolutely not something extrinsic that an organism needs for health, such as e.g.

“a tree needs water”. Hereby, Maslow (1943) refers to the lower order needs as being more

extrinsic and the higher order needs more intrinsic. Below, in figure 2.2, a chart of Maslow’s

hierarchy of needs is presented. In fact, Herzberg, Mausner and Snyderman (1959) redefined

Maslow’s (1943) Hierarchy of Needs into their two categories named: hygienes and motivators.

This is one of the first attempts to make up the difference between intrinsic and extrinsic

motivation (Staw, 1976). And they emphasized that satisfaction and dissatisfaction cannot be

treated as opposites from each other (Salancik and Pfeffer, 1977). It can even be stated,

according to Furnham, Forde and Ferrari (1998) that the motivator needs of Herzberg are very

similar to the higher-order needs in Maslow’s Theory of Needs. It can be stated that Herzberg’s

(1959) Two-Factor Theory and Maslow’s (1943) Hierarchy of Needs are two related theories.

And it seems that these two theories form the basis for later motivational theories, since they

make a very clear distinction between intrinsic and extrinsic motivation.

02.07 Employee Engagement

Employee engagement is a property of the relationship between an organization and

its employees. An "engaged employee" is defined as one who is fully absorbed by and

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enthusiastic about their work and so takes positive action to further the organization's reputation

and interests.

Kahn (1990) defines employee engagement as “the harnessing of organization members’ selves

to their work roles; in engagement, people employ and express themselves physically,

cognitively, and emotionally during role performances”. The cognitive aspect of employee

engagement concerns employees’ beliefs about the organisation, its leaders and working

conditions. The emotional aspect concerns how employees feel about each of those three factors

and whether they have positive or negative attitudes toward the organisation and its leaders. The

physical aspect of employee engagement concerns the physical energies exerted by individuals to

accomplish their roles.

Robinson et al. (2004) defined engagement as ‘one step up from commitment’. As a result,

employee engagement has the appearance of being yet another trend, or what some might call

“old wine in a new bottle”. , employee engagement can be achieved through the creation of an

organisational environment where positive emotions such as involvement and pride are

encouraged, resulting in improved organisational performance, lower employee turnover and

better health.

Shashi (2011) reinforced the importance of employee communication on the success of a

business. She revealed that an organization should realize the importance of employees, more

than any other variable, as the most powerful contributor to an organization’s competitive

position.

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Susi & Jawaharrani (2011) examined some of the literature on Employee engagement, explore

work-place culture & work-life balance policies & practices followed in industries in order to

promote employee engagement in their organizations to increase their employees’ productivity

and retain them. Work-life balance is key driver of employees’ satisfaction.

According to Lawler and Worley (2006) for a high-involvement work practice to be effective

and for it to have a positive impact on employee engagement, employees must be given power.

02.08 Employee Grievance Handling

Sundaram and N.Saranya (2013) in his article “Employee Grievance” Organizations are made

up of people and functions through people without people organization cannot exist. The

resource of men, money, materials and machinery are collected, coordinated and utilized through

people in the organisation. It is through the combined efforts of people that materials and

monetary resources are effectively utilized for the attainment of common objectives and goals

without united human efforts no organization can achieve its goals.

Zulkifee Bin Daud, Khulida Kirana Yahya, (2011) in his research paper “The Influence of

Heads of Department Personalities on the Selection of Grievance Handling Styles“ Grievance

management is an important topic in the area of industrial relations. Research on grievance

management is burgeoning, and yet the understanding of its antecedents and consequences

remains rather unclear. This research discusses the styles in handling grievances among heads of

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department at a telecommunication headquarters and branches located in Peninsular Malaysia

and the determinant of personalities in selecting the appropriate styles.

Sonika Sharma, Niti Sharma, (2011) in his research paper entitled “Listening Skills: A Pre

Requisite for Grievance Handling” The ability to be an active listener is too often taken for

granted. HR professionals play pivotal role in the organization. They inject a feeling of

confidence and belief among the staff members by listening and solving their issues and

concerns. Employee grievances are essentially human problems, real or imaginary.

Lawrence Nurse, Dwayne Devenish, (2007) in his working paper entitled “Grievance

Management and its Links to Workplace Justice” The purpose of this paper is to explore the

influence of workers' demographic characteristics on their perceptions of procedural justice from

grievance management. A related aim is to determine whether procedural justice perceptions

have an impact on perceptions of distributive justice.

Lvancevich (2001), the use of appropriate style in managing employee grievance enables the

supervisor to take every grievance seriously, gather all information available on the grievance,

after weighing all the facts, and provide an answer to the employee who is voicing the grievance.

Effective management of employee’s grievance will enable the supervisor to resolve the

grievance on a mutual understanding and move on to other matters. This study therefore assumes

that there is need to investigate the styles applied in handling employee grievance in higher

learning institutions in order to determine their influence on minimizing or fuelling employee

grievances once applied.

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02.09 Company Vision and Mission

Baum, Locke and Kirkpatrick (1998), chose to define the term vision as each leader defines it,

because it is the leader’s actual vision that guides his/her choices and actions.

More fundamentally, mission statements are supposed to capture the overriding purpose of an

organization in line with the values and expectations of stakeholders and should typically answer

the questions: „what business are we in?‟ (Johnson et al., 2008); and „what is our business for?‟

(Drucker, 1973).

Mission statements have been reported as a broad overarching framework around which other

strategic concerns like vision, strategic intent and capabilities, goals, objectives, core values,

behavioural standards, business models etc evolve (Campbell and Tawadey, 1992; Lynch,

2000).

A study by Rigby (1994) rated mission statements second of all used tools particularly because

they believe it is a useful ingredient in organizational integration which gets everyone focused on

objectives and working together to pull in the same direction.

According to Bartkus et al. (2004) the primary role of a mission statement is to communicate

the strategic direction of the organization to stakeholders in order to guide strategic planning

02.10 Job Satisfaction

Job satisfaction is one of the most researched variables in the area of workplace psychology , and

has been associated with numerous [[Psychosocial issues - the changing world of work]

organisational factors]] ranging from leadership to job design . This article seeks to outline the

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key definitions relating to job satisfaction, the main theories associated with explaining job

satisfaction, as well as the types of and issues surrounding the measurement of job satisfaction.

Lu, While, and Barriball (2005) mentioned the traditional model of job satisfaction focuses on

all the feelings about job of an individual. However, what makes a job satisfying or dissatisfying

does not depend only on the nature of the job, but also on the expectations that individuals have

of what their job should provide

Maslow (1954 cited in Huber, 2006) arranged human needs along a five level hierarchy from

physiological needs, safety and security, belonging, esteem to self-actualization. In Maslow’s

pyramid, needs at the lower levels must be fulfilled before those rise to a higher level. According

to Maslow’s theory, some researchers have approached on job satisfaction from the perspective

of need fulfilment.

Job satisfaction as a match between what individuals perceive they need and what rewards they

perceive they receive from their jobs (Huber, 2006).

Job satisfaction is commonly defined as the extent to which employees like their work (Agho,

Mueller and Price, 1993). It is generally conceptualized as general attitude toward an object and

the job (Lofquist and Dawis, 1969). Locke (1976) gives a comprehensive definition of job

satisfaction as pleasurable or positive emotional state resulting from the appraisal of one’s job

experience. Job satisfaction has been defined as a pleasurable emotional state resulting from the

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appraisal of one’s job; an affective reaction to one’s job (Cranny, Smith and Stone, 1992); and

an attitude towards one’s job (Brief, 1998).

02.11 Employee Relations

Saxena (1970) study’s on industrial relations in selected units examined employment, earning

and expenditure, the maintenance of personnel, attitude of the employees towards policies, the

growth and development of labour movement and industrial relations in five selected industrial

units representing four sectors of industrial activity viz, sugar, distillery, vanaspati and textile.

Dayal and Sharma's (1971) study on "Strike of Supervisory Staff in the State Bank of India"

examined industrial relations situation in the State Bank and the events preceding the strike, the

reasons for the strike, and described the immediate post - strike phase and the subsequent stage

reconstruction of relationships between the management and the employee’s federation.

Sharma (1981) has conducted a study on “Organisational Determinants of Supervisory

Management Relations in Corinthian Bank Limited." A combination of three factors namely,

style of management, monetary benefits & absence of disparities was found to explain 58 percent

of the variation in supervisory management relations. The said combination represented the best

equation.

Ramana Rao P. V.made a study on "Industrial Relations in Andhra Pradesh State Electricity

Board" and examined the nature of personnel and union management relations in the electricity

board and explained why interests and attitudes of the management and labour came into

conflict, how conflicts were resolved and how new problems would emerge in future.

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Sharma and Sundararajan (1983) studied on "Organisational Determinants of Labour

Management relations in India” and investigated factors determining labour management

relations in 50 companies. Of the nine factors studied, the two included in the best equation

scope for advancement and grievance handling was found to be the most critical determinants.

Together these two factors accounted for 58 percent of the variation in labour management

relations across the 50 companies.

Menon (1983) in his study on "Personnel Management in Banks” examined the procedures,

practices and policies prevalent in personnel administration in banks in India. He identified that

behind the facade of trade unionism the bullies influenced every facet of management whether it

was collective bargaining, grievance procedures, disciplinary matters, departmental enquiries or

employee managerial relations.

02.12 Employee Work Life Balance

Career and goals are the most important factors in life. Most of the women are coming forward

to work in order to support their family. This change is now natural and dynamic due to change

of environment and economic conditions. The biggest challenge for women is how to balance the

demands of family and career. The literature identifies the various aspects such as career

advancement, Work Stress, Career aspiration, Work Family Conflict and Family Work Conflict,

Child care in context with Work Life Balance (WLB) and its practices. This paper reveals the

overview of the various challenges and issues faced by Women employees to achieve WLB.

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Mani (2013) has revealed the major factors influencing the Work Life Balance of Women

professionals in India such as role conflict, lack of recognition, organizational politics, gender

discrimination, elderly and children care issues, quality of health, problems in time management

and lack of proper social support.

Santhana et al., (2013) have examined that the Educational institutions should address the

Work Life Balance related issues among their staff, specifically women and take a holistic

approach to design and implement the policies to support the teaching staff to manage their

WLB.

Thriveni et al., (2012) have studied and analysed the significant relationship between the

demographic variables and WLB. Shalini and Bhawna 2012 reported in their study, Quality of

work life is being used by the organizations as a strategic tool to attract and retain the employees

and more importantly to help them to maintain work life balance with equal attention on

performance and commitment at work.

McMillan et al., (2011) suggested that the individual harmony and its effects has developed a

new Harmony based on conflict and enrichment.

Reddy et al, (2010) concluded that the married women employees indeed experience Work

Family Conflict (WFC) while attempting to balance their work and family lives. Thus,

Organization needs to formulate guidelines for the management of WFCs since they are related

to job satisfaction and performance of the employees.

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Niharika and Supriya (2010) have studied the work based factors and family related factors

that are considered to contribute to work life balance. Work based factors are flexi time, option

to work part time and freedom to work from home and the family related factors are child care

facility and flexibility to take care of emergencies at home.

02.13 Employee Reward and Recognitions

Employee rewards and recognition system is not just a positive thing to do with people but

communicating it effectively is an efficient tool in encouraging them to create and bring business

for you. Treating your employees like your assets and maintaining harmonious relationships with

them doesn’t only yield business in present but also an effective strategy for future.

The strong relationship between reward and recognition and its importance for job satisfaction of

employees has also been explained by various theorists from around the world such as Maslow’s

need hierarchy theory (1943, 1954), Herzberg two factor theory (1959), Aldefer ERG theory

(1972) and most recently Vroom’s Valence, Instrumentality and Expectancy Theory (1964).

Aldefer’s ERG Model Alderfer (1972) modified Maslow’s theory divided the need hierarchy

into three basic levels such as Existence Needs (incentives and physical requirements such as

pay, security and working conditions.), Relatedness Needs (need for social relations such as

relationships with family, friends and colleagues) and Growth Needs (self-fulfillment, the desire

for career growth development and competency). According to this model all the basic needs

motivate behavior at the same time and might not emerge like Maslow’s Need Hierarchy Theory.

It means that any need emerges any time to motivate employees regardless of the fulfillment of

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the other need. It can be argued that the three levels of needs in the ERG model represent reward

and recognition. Existence needs such as pay and incentives corresponds with reward.

Relatedness needs like social relations (family, friends and colleagues) correspond with

recognition. Thus reward and recognition motivate employees regardless of any hierarchy.

According to Armstrong (1991) existence needs are likened to physiological and safety needs of

Maslow’s theory. This theory is concerned with the material satisfaction and maintaining balance

that people want to have regarding certain substances. Schultz (1982) explains that organizations

can satisfy these needs through salary, fringe benefits, safe working environment and job

security. It relates to tangible goals such as food, pay, home and so on

Maslow’s Need Hierarchy Theory According to this theory there are two types of needs.

Lower level and higher level needs. Lower level needs can be satisfied externally (extrinsically)

and higher level can be satisfied internally (intrinsically). Lower level needs are the basic

biological human needs such as food, shelter, sex and dress while upper level needs are those

which individual strives to achieve after the satisfaction of the lower level such as self-esteem

and self actualization. Walker, Churchill, and Ford (1979) pointed out that intrinsic rewards are

intangible such as recognition, appreciation and praise. Whereas, extrinsic rewards are external

and tangible and reflect lower-order human needs such as food, shelter sex and dress. In his

theory Maslow (1943) also discusses that employees can be motivated by satisfying their needs.

In work setting employees are motivated through recognition, an increase in responsibility, high

status, appreciation and positive feedback. According to Maslow (1943) needs emerge as a

hierarchy. When lower level needs are satisfied in the hierarchy, individual strive for the next

level. We can say that when physiological, safety and social needs are satisfied, the individual

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strives for self esteem and self–actualization. Hence, Maslow’s hierarchy theory broadly

supports the concept that reward and recognition (basic needs) and (self-esteem needs) of

employees, if met, lead to satisfaction of the particular employee. The theory says that needs at

different hierarchy level reflect reward and recognition. For example, physiological needs

represent the tangible reward in the shape of salary and food. Social needs are intangible rewards

provided by colleagues and superiors in the shape of encouragement, appreciation and positive

feedback. Similarly, an individual strives for recognition which increases his / her self esteem. It

is the recognition that an individual wants to receive for his / her performance. Broad (2007)

argues that incentives, reward and recognition are the basic factors for motivation of the

employees. Reward and recognition develop an enthusiasm among employees, increase their

desire for work and also establish a linkage between performance and motivation of the

employees. (Flynn, 1998)

Hertzberg Two Factor Theory Hertzberg (1959) explored motivation by offering Two Factor

Theory. He divided the factors of motivation in two categories such as Satisfiers or (motivators)

and Dissatisfies or (hygiene). According to Herzberg, satisfiers or motivators are intrinsic

motivational factors which are related to job itself and internal to individual such as, recognition,

development and responsibility. It also corresponds to Maslow’s motivation or need hierarchy

theory where self-esteem is an upper level need. Dissatisfaction or hygiene are extrinsic

motivational factors which remove dissatisfaction such as salary, working condition and

relationship with colleagues. It reflects Maslow’s lower level or physiological needs. The

Herzberg theory constitutes the same framework in support of the argument of reward and

recognition and its effect on employee’s job satisfaction as constituted by Maslow’s hierarchy

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theory. The motivating factors reflect self-esteem which is actually recognition. Hygiene factor

reflects the lower level needs like physiological. According to Armstrong (1991) two factor

theory of Herzberg’s two divides human needs into two groups such as satisfiers or motivators

and dissatisfies. The satisfiers or motivators are responsible for motivating the individuals to

better performance and efforts, whereas, the dissatisfies actually prevent job dissatisfaction by

describing the environment. This has very little effects on positive job motivation. These are

preventative and environmentally based and are also called hygiene factors.

Vroom’s Valence, Instrumentality and Expectancy (VIE) Theory According to Vroom’s

(1964) theory motivation depends on individuals’ expectations about their ability to perform

tasks and receive desired rewards. An employee’s motivation for better performance depends on

the expectation that the efforts will lead to better performance which will bring reward and

recognition. In broader sense the theory supports the argument that there is a strong relationship

between reward and recognition and employees job satisfaction. Danish and Usman (2010)

justify that employees are less motivated if organization neglect the aspects of recognition and

the employees are highly motivated when there are sufficient growth opportunities in terms of

reward and recognition within the organization. This theory in the words of Nel et al (2001)

explains that individuals make choices on the basis of their expectations. This expectation is

based on the fact that certain reward may be the result. It means that in an organization people

will be motivated for a work which will bring some gratification or a desired result to the

employee. This is further supported by Schultz (1982) that in certain organizations employees

will choose to perform such a job that will bring some benefits. In this way, they will show more

commitment and work hard to achieve that target if they are assured that this will bring some

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reward or recognition such as salary increase, promotions, encouragement and appreciations.

Therefore, it is important to relate performance with rewards and recognition.

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CHAPTER - III

MATERIALS AND METHODS

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Research Design :Descriptive Research Design

Type of Data :Primary and Secondary Data

Research Tool :Structured Questionnaire, Internet

, Journals, etc.

Area of Research :Kerala State

Population :Employees of Gold Loan NBFC’s (9000 employees)

Sample Size :450

Sampling Plan :Random Sampling Technique

Analysis :Data analyzed through SPSS (Statistical

Package for Social Science, 20.00 version), Percentage,

Correlation, Histogram and Scatter Diagram. MS Excel

was used for tabulation and Graphs.

Pilot Study :60 Employees of Gold Loan NBFC’s

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CHAPTER THREE

MATERIALS AND METHODS

03.01 Introduction

This chapter provides the approach and methodology to the study. It provides the outline of the

Research Design (Sampling technique ,Sample Size, total population, Data collection tool) Data

collection method ,Research Process, Hypotheses, Variables, Data analysis ,Limitation of the

study etc .A critical analysis of Review of Literature of various research studies conducted by

Nationally and Internationally, which is relevant to the topic either directly or indirectly - “HR

Practices Of Non Banking Financial Companies And Their Effect On Employee Job Satisfaction

With Reference To Gold Loan NBFC’s”

03.02 Pilot Study

A Pilot Study “Pre-Study” of the Research topic was conducted before the intended study. It has

helped to check the validity of the formulated Questionnaire. 60 employees of Gold Loan

NBFC’s were randomly selected and tested with the questionnaire in similar condition to get

more authentic and reliable result. Personal Interview was conducted to get the factors pertaining

to the research area such as Manpower Planning , Recruitment , Succession Planning , Training

,Performance Management ,Employee Motivation, Employees engagement, Grievance handling,

Job Satisfaction, Employee Relations, Work life balance of employees, Employee Reward

system etc. thereafter refined form of questionnaire and factors analyzed form the Personal

Interview were incorporated in the final Questionnaire for the Research purpose.

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The employees were asked to rate the questions in liker scale from 1 to 5 whereas 1 indicates

Strongly Disagree, 5 indicate Strongly Agrees with the statement. The employees were easily

responded with the questions and properly acknowledged. Pilot study helps for preliminary

testing of the hypotheses that leads to test more specific hypotheses in the Research. It leads to

changing some hypotheses and developing new hypotheses in the final study.

03.03 Formulation of Research Design

The study is quantitative by nature and is presented in the shape of a descriptive correlation

study. The following steps have been covered in this empirical study;

(Fig-03.01)

Defining the

Population and Sample

Size.

Outlining the

Measurement of

variables.

Defining the

Population and Sample

Size.

Outlining the

Measurement of

Construct

Describing the data

Collection Process and

data Processing..

Formulating and

reflecting on the

Research hypothesis

Devising

recommendations

Formulating conclusions

and Detailing the

Research Limitation

Interpreting the

Research results.

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03.04 Research Design

Research design is the structure that creates to find answers to research problems. The researcher

brings to the choice of a research design assumptions about knowledge claims. In addition,

operating at a more applied level are strategies of inquiry (or traditions of inquiry, Creswell,

1998; or methodologies, Mertens, 1998) that provide specific direction for procedures in a

research design .For deriving the most valid finding, Research Design creates the frame work

that facilitates the smooth sailing of the various research operations and acquiescent the

maximum Information. Research design relates largely to decision making which impact the

research questions, formulating the research problems, Conceptualizing and taking the action on

the research, Collecting the research data, Analyzing and interpreting the results (Mouton

&Maris, 1990)

Descriptive research design and quantitative approach were adopted in this Research. The

quantitative approach is defined as “the approach to research in the social science is that more

highly formalized as well as more explicitly controlled, when a range that is more exactly

defined, and which in terms of the method used is relatively close to the physical Science

(Mouton & Maris ,1990 p.155) . Field methods such as interviews and observation, a qualitative

data were combined with traditional studies (quantitative data) (S. D. Sieber, 1973).

The research study conducted by the way of correlations and to determine the direct relationship

with the various HR practices followed by the NBFCs and Employee Job Satisfaction by

examining various HR policies and practices followed by the NBFC’s such as Manpower

Planning , Recruitment ,Succession Planning , Training ,Performance Management ,Employee

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Motivation, Employees engagement ,Grievance handling, Job Satisfaction ,Employee Relations,

Work life balance of employees , Employee Reward system etc .The Questionnaire is designed

in such a way that all the polices are examined in detail. Descriptive Research design is used for

this study to depict the respondents.

03.05 Type of Data

Primary Data of HR Practices of NBFC’s were collected from the NBFC’s of Kerala State and

Secondary Data were collected from various Research Reports, Annual reports, Internet etc.

03.06 Data Collection Method

Data collection is the process of systematic gathering and measuring information from different

sources that enables the answer to the research questions and Hypothesis. The data collection

factors of research is common to all fields of study including physical and social sciences,

humanities, business, law, mathematics etc. While methods are varies by disciplines, the

importance of ensuring accurate and honest collection of data residue the same.

In spite of the field of study or preference for defining data (quantitative, qualitative), accurate

data collection is essential to maintaining the integrity of research. Together the selection of

suitable data collection tools (prevailing, altered, or newly developed) and clearly defined

directions for their right use reduced the possibility of errors occurring. While the degree of

impact from faulty data collection may vary by discipline and the nature of investigation, there is

the potential to cause disproportionate harm when these research results are used to support

public policy recommendations.

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In this Research study, Questionnaire was used for conducting survey of 450 employees of three

Gold Loan NBFC’s. Questionnaire was framed with Open ended and closed ended questions to

gather the information from the population. Questionnaire was designed and framed on the basis

of pilot study conducted by 60 employees of two Gold Loan NBFC’s.

03.07 Rating Scale

Normal Scale and Likert Scale were used in the questionnaire for collecting the information from

the respondent .In research activities a YES/NO scale is nominal. It has no order and there is no

distance between YES and NO. In Likert scale each respondent is asked to rate each item on

some response scales. For instance, they could rate each item on a 1-to-5 response scale where:

1. = Strongly Disagree

2. = Disagree

3. = Neither Agree or Disagree

4. = Agree

5. = Strongly Agree

There is multiplicity of possible response scales (1-to-7, 1-to-9, 0-to-4). All of these odd-

numbered scales have a central value and is often labelled Neutral or Undetermined. It is

probable to use a forced-choiced reply scale with an even number of responses and no middle,

neutral or undetermined options. In this situation, the respondent is forced to decide whether they

lean more towards the ‘‘agree or disagree’’ end of the scale for each item.

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03.08 Area of the Study

The survey was conducted in Kerala State and the data collected from 450 employees of leading

Gold Loan NBFC’s (Muthoot Finance Ltd, Manappuram Finance Ltd and Muthoot Fincorp

).They have as of now a total of 785 ,538 and 959 Branches across Kerala State itself . With

the intent of generalizing from a sample to a population (Babbie, 1990), surveys included

longitudinal and cross-sectional studies with the means of questionnaires or structured interviews

for data collection.

03.09 Sampling Size

In this study, sample size was taken from the employees working in Gold Loan NBFCs at Kerala

Branches. Total size of the population for the study was 9000 employees, out of which 600

questionnaires were distributed to the employees and 450 duly filled forms were received for the

study. The sample size is suitable and universe consists of the elements, and each element further

divided into small units. For instance, in this study employees comprise the universe. The

element of universe may comprise of different HR Practices followed by these NBFC’s.

03.10 Sampling Technique

In this research, Stratified Random Sampling, sometimes referred as quota or proportional random

sampling is used to carry the survey .It involves dividing the population into homogeneous

subgroups and then taking a simple random sample in each subgroup. Breaking the population

into non-coinciding sets (i.e., strata) N1, N2, N3, ... Ni, such that N1 + N2 + N3 + ... + Ni = N.

Then conduct a simple random sample of f = n/N in each of the strata.

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In this study, Employees of Gold Loan NBFCs from Kerala State are the targeted population.

The entire population has proportionately divided from three major NBFCs Such as Muthoot

Finance, Manappuram Finance and Muthoot Fincorp. Their details are as follows.

Tab.03.01 –Gold Loan NBFC –in nutshell

Muthoot

Finance

Manappuram

Finance

Muthoot

Fin.corp

Total No of Branches as on March 2016 4200 3292 3645

Total No of Branches in Kerala as on

March 2016

785 538 959

Total No of Employees as on March 2016 22781 16693 14992

Average No of employee per Branch

(including the administrative offices)

5.42 5.07 4.11

No of Questionnaires distributed 207 141 252

There are reasons to prefer stratified sampling over simple random sampling. First, it assures that

the study will be able to represent not only the overall population, but also key subgroups of the

population, especially small minority groups.

03.11 Statistical Tools Used

Percentages

Correlation

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03.14 Hypotheses

The formulated hypothesis in this study in line with the relationship between HR Practices

and Job Satisfaction;

H1: Manpower Planning and Recruitment practices in the organization are significantly related

to Employee Satisfaction.

H2: Training and Succession planning practices in the organization are significantly related to

Employee Satisfaction.

H3: Performance Management practices in the organization are significantly related to Employee

Satisfaction.

H4: Employee Motivation and Employee engagement practices in the organization are

significantly related to Employee Satisfaction.

H5: Grievance Handling and Communication practices in the organization are significantly

related to Employee Satisfaction.

H6: Employee reward systems in the organization are significantly related to Employee

Satisfaction.

H7: The Human Resource Practices are significantly related to the overall Performance of the

company.

H8: The Human Resource Practices in NBFC are significantly related to Work Life Balance of

the employees.

03.15 Data Tabulation and Analysis

Data collected for research was analyzed. Data has been analyzed through SPSS software.

Tabulation work has been done through the help of MS-Excel. This was used for preparing the

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required graphs. Descriptive statistics were initially done with the aim to describe the data

(Durrhein, 2002). Further Statistical analysis were utilized to test the research hypotheses to

determine if a statistical association existed between the research variables (Bailey, 1987).

03.16 Hypothesized Model of Dependant and Independent Variable used in this Study

(Fig-03.02)

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CHAPTER - IV

RESULTS AND DISCUSSIONS

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CHAPTER FOUR

RESULTS AND DISCUSSIONS

04.01 Method of Analysis

Data collected for research was analyzed. Data has been analyzed through SPSS software.

Tabulation work has been done through the help of MS-Word and MS-Excel was used for

preparing the required graphs.

04.03 Manpower Planning and Recruitment

04.03 (a) How to communicate to the HR when a position becomes vacant or requirement

of a new position?

Tab.04.01

Methodology Frequency Percentage

Through Position requisition Form 108 24.00 %

Through Online 20 04.44 %

System Driven 322 71.56 %

Total 450 100

(Fig-04.01).

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As per the Table No: 04.01 and Fig No-04.01 shows that 71.6 % responded that the position

vacant or additional manpower requirements are generated through system driven.24.00 %

responded that the manpower requirements communicated through Position requisition form and

remaining 04.4 % responded that the process is done through online to the HR department

concerned.

04.03 (b) How the candidate comes to know about the position was vacant.Tab.04.02

Source of Information Frequency Percentage

News Paper Ad 228 50.7%

Social Media 12 2.7%

Employment News 0 0.0%

Employee Reference 130 28.9%

Web Recruitment sites 18 4.0%

Company website 49 10.9%

Consultancy 9 2.0%

Others 4 0.9%

Total 450 100

(Fig-04.02).

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Table No: 04.02 and Fig No-04.02 shows that 50.07% respondents were received the information

through News Paper advertisements about the job openings of their company.28.9% respondents

are received information through employee references .10.9 % respondents are received

information through the company website. 2.7 % are received the information through social

media and 4 % received through web recruiters. 2.09 % respondents received the information

through consultancies and other sources.

04.03 (c) Employees opinion about effective source of vacancy notification

Tab.04.03

Effective Source Frequency Percentage

News Paper Ad 86 19.11%

Social Media 12 2.67%

Employment News 7 1.56%

Employee Reference 228 50.67%

Web Recruitment sites 18 4.00%

Company website 98 21.78%

Consultancy 1 0.22%

Others 0 0.00%

Total 450 100

(Fig-04.03).

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Table No: 04.03 and Fig No-04.03 shows that 19.11 % responded that the news paper is the best

medium of recruitment notification.2.67 % says that social media and 1.57 % says that

employment news is the best medium of notifying the vacancies.50.67 % respondents says that

employee reference is the best medium of vacancy notification.21.78 % says that company web

site is effective source of vacancy notification.0.22 % respondents says employment consultancy

is the good source of vacancy notification.

04.03(d) Candidates under gone any written test and formal Interview at the time of

Recruitment

Tab.04.04

Method Yes Percentage of

Yes

No Percentage of

NO Total

Written Test 203 45.1% 247 54.9% 450

Interview 446 99.1% 4 0.9% 450

As per table No: 04.04 and Fig No-04.04 ,45.1 % respondents were attended the written test and

54.9 % respondents were not attended any formal written test at the time of recruitment.99.1 %

respondents were attended formal interview at the time of their recruitment and 0.9 % were not

attended any formal interview at the time of their recruitment.

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04.03(e) Job Descriptions were communicated on or before Joining

Tab.04.05

(Fig-04.05).

As per table No: 04.04 and Fig No-04.04, 74.4 % respondents were not received their job

descriptions before joining and 25.6 % received the job descriptions before joining.

JD Received Frequency Percentage

Yes 115 25.6%

No 335 74.4%

Total 450 100 %

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04.03(f) Company Recruitment process are based on competencies and merit

Tab.04.05

Option Frequency Percentage

Strongly Agree 201 44.7%

Agree 200 44.4%

Neither 20 4.4%

Disagree 16 3.6%

Strongly Disagree 13 2.9%

Total 450 100%

(Fig-04.05).

Table No: 04.05 and Fig No-04.05 shows that, 201nos (44.7 %) respondents were strongly agree

that Company Recruitment process are based on competencies and merit.200 nos (44.4 %)

respondents were agree that the recruitment process are based on competencies and merit. 20 nos

(04.4 %) respondents were neither agree or Disagree, 16 nos (03.6 %) respondents were Disagree

and 13 nos (02.9 %) were strongly disagree that the recruitment process are based on

competencies and merit.

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04.03(f) Do you have the right (adequate) number of staff ( head count) in your Branch

/Department to run the day to day operations satisfactorily

Tab.04.06

Option Frequency Percentage

Strongly Agree 110 24.4%

Agree 124 27.6%

Neither 20 4.4%

Disagree 121 26.9%

Strongly Disagree 75 16.7%

Total 450 100%

(Fig- 04.06).

Table No: 04.06 and Fig No-04.06 shows that 110 nos (24.4 %) of respondents were strongly

agree that they have sufficient no of staff to meet the day to day operations .124 Nos (27.6 %)

were agreed that the staff strength is sufficient to meet the routine work.121 nos (26.9 %) and 75

nos (16.7 %) respondents were disagree and strongly disagree that they don’t have sufficient no

of staff in their Branch/Department to meet the day to day ) to run the day to day operations

satisfactorily.

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04.03(g) Are you satisfied with the length of time (lead time) it takes to fill up the open

positions in your Department/Branch

Tab.04.07

Option Frequency Percentage

Strongly Agree 216 48.0%

Agree 82 18.2%

Neither 8 1.8%

Disagree 113 25.1%

Strongly Disagree 31 6.9%

Total 450 100%

(Fig- 04.07).

As per the Table No: 04.06 and Fig No-04.06 , among the total population 216 nos (48%) were

strongly agree ,82 nos (18.2 %) were agree ,08 nos (1.8 %) were neutral,113 nos (25.1%) were

disagree and 31.Nos (6.9 %) were strongly disagree that they are satisfied with the length of

time ( lead time ) it takes to fill up the open positions in Department/Branch.

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04.03(g) Your Department /Branch has the right people in the right place in terms of skill

and business knowledge.

Tab.04.07

Option Frequency Percentage

Strongly Agree 118 26.2%

Agree 89 19.8%

Neither 4 0.9%

Disagree 187 41.6%

Strongly Disagree 52 11.6%

Total 450 100%

As per the Table No: 04.07 and Fig No-04.07 , among the total population 118 nos (26.2%)

were strongly agree ,89 nos (19.8 %) were agree ,04 nos (0.9 %) were neutral,187 nos (41.6%)

were disagree and 52.Nos (11.6 %) were strongly disagree that the Department /Branch has the

right people in the right place in terms of skill and business knowledge

(Fig- 04.07).

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04.03(h) The Recruitment procedures are clearly defined, Fair and unbiased

Tab.04.08

Option Frequency Percentage

Strongly Agree 243 54.0%

Agree 127 28.2%

Neither 39 8.7%

Disagree 31 6.9%

Strongly Disagree 10 2.2%

Total 450 100%

Referring to table No: 04.08 and Fig No-04.08 , 243 nos (54.%) respondents strongly agree ,127

nos (28.2%) were agree that the recruitment procedure are clearly defined ,fair and unbiased .39

Nos (8.7 %) were neutral ,31 Nos (6.9 %) were disagree and 10 nos (2.2%) were totally disagree

that the recruitment procedures are clearly defined, Fair and unbiased.

Fig- 04.08).

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04.03(i) Candidates from within the Organization are given appropriate consideration

Tab.04.09

Option Frequency Percentage

Strongly Agree 301 66.9%

Agree 103 22.9%

Neither 4 0.9%

Disagree 23 5.1%

Strongly Disagree 18 4.0%

Total 450 100%

(Fig- 04.09).

As per the Table No: 04.09 and Fig No-04.09 , among the total population 301 nos (66.9%)

were strongly agree ,103 nos (22.9 %) were agree ,04 nos (0.9 %) were neutral,23 nos (5.1%)

were disagree and 18.Nos (4.0 %) were strongly disagree that the employees within the

Organization are given appropriate consideration for internal vacancies.

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04.03(J) Selection criteria are specifically linked to core objectives of the Organization and

job requirements.

Tab.04.10

Option Frequency Percentage

Strongly Agree 139 30.9%

Agree 125 27.8%

Neither 121 26.9%

Disagree 42 9.3%

Strongly Disagree 23 5.1%

Total 450 100%

(Fig- 04.10).

As per the Table No: 04.10 and Fig No-04.10 , among the total population 139 nos (30.9%)

were strongly agree ,125 nos (27.8 %) were agree ,121 nos (26.9 %) were neutral,42 nos (9.3%)

were disagree and 23.Nos (5.1 %) were strongly disagree that the Selection criteria are

specifically linked to core objectives of the Organization and job requirements.

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04.04 Training and Succession Planning

04.04 (a) Do your Organization have a formal structured induction programme for fresh

recruits joining the organization as well as for internal promotes?

Tab.04.11

Option Frequency Percentage

Yes 445 98.9%

No 5 1.1%

Total 450 100 %

(Fig- 04.11).

As per the Table No: 04.11 and Fig No-04.11 , 445 nos (98.9 % respondents said that their

organization have a formal structured induction programme for fresh recruits joining the

organization as well as for internal promotes .5 (01.01 %) says that no structured induction

programme .

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04.04 (b) Your organization is committed to improving the skill level of current

employees to meet the job requirements

Tab.04.12

Option Frequency Percentage

Strongly Agree 181 40.2%

Agree 126 28.0%

Neither 12 2.7%

Disagree 66 14.7%

Strongly Disagree 65 14.4%

Total 450 100%

(Fig- 04.12).

As per the table No: 04.12 and Fig No-04.12 shows that181 nos (40.2 % ) respondents strongly

agree and 126 nos (28 %) agree that organization is committed to improving the skill level of

current employees to meet the job requirements.66 nos (14.7 %) respondents were disagree and

65 nos (14.4 % ) were strongly disagree that organization is committed to improving the skill

level of current employees to meet the job requirements.

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04.04 (c) Training Programmes are structured to meet the job requirements of

employees.

Tab.04.13

Option Frequency Percentage

Strongly Agree 235 52.2%

Agree 146 32.4%

Neither 1 0.2%

Disagree 56 12.4%

Strongly Disagree 12 2.7%

Total 450 100%

(Fig- 04.13).

Training Programmes of Gold Loan NBFCs are structured to meet the job requirements of

employees, according to Table : 04.13 and Fig No-04.13 shows that 235 nos (52.2 %)

respondents strongly agree and 146 nos (32.4 %) respondents agrees with the comment.56 nos

(12.4%) respondents were disagree ,12 nos (2.7%) were strongly disagree that the Training

Programmes of Gold Loan NBFCs are structured to meet the job requirements of employees.

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04.04(d) Training need analysis happens at the time of your Performance Appraisal

Tab.04.14

Option Frequency Percentage

Strongly Agree 76 16.9%

Agree 76 16.9%

Neither 64 14.2%

Disagree 158 35.1%

Strongly Disagree 76 16.9%

Total 450 100%

(Fig- 04.14).

Table No: 04.14 and Fig No-04.14 shows that, 76nos (16.9 %) respondents were strongly agree

and agree , 64 Nos (14.2%) respondents were neutral to says that the Training need analysis

happens at the time of the Performance Appraisal.158 nos (35.1%) respondents were disagree

and 76 nos (16.9%) were strongly disagree that the Training need analysis happens at the time of

the Performance Appraisal.

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04.04(e) How often employees are getting refresher training programmes to meet the

challenges of job requirements

Tab.04.15

Option Frequency Percentage

Periodic intervals 65 14.4%

Once in a Year 112 24.9%

Never 273 60.7%

Total 450 100%

(Fig- 04.15).

As per the Table No: 04.15 and Fig No-04.15 , among the total population 65 nos (14.%) were

said that refresher training happening in periodic interval ,121 nos (25 %) were responded they

are receiving refresher training once in an year and 273 nos (61 %) were responded that

employees are never getting refresher training programmes to meet the challenges of job

requirements.

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04.04(e) Your organization is using online training programmes for the employee’s

knowledge enhancement.

Tab.04.16

Option Frequency Percentage

Strongly Agree 0 0.0%

Agree 0 0.0%

Neither 13 2.9%

Disagree 150 33.3%

Strongly Disagree 287 63.8%

Total 450 100%

(Fig- 04.16).

As per the Table No: 04.16 and Fig No-04.16 shows that Gold Loan NBFCs are not effectively

using online training platforms for the employee’s knowledge enhancement.

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04.04(e) In my organization, Employee Development is seen as a key to success rather than

a cost

Tab.04.17

Option Frequency Percentage

Strongly Agree 56 12.4%

Agree 72 16.0%

Neither 52 11.6%

Disagree 168 37.3%

Strongly Disagree 102 22.7%

Total 450 100%

(Fig- 04.17).

As per the Table No: 04.17 and Fig No-04.17 , among the total population 56 nos (12.4%)

respondents were strongly agree with an opinion that organization, Employee Development is

seen as a key to success rather than a cost .72 Nos (16%) respondents were agreed and 52 nos

(11.6%) were neutral opinion that the that organization, Employee Development is seen as a key

to success rather than a cost.168 respondents (37.3%) were disagree and 102 respondents

(22.7%)respondents were strongly disagree with the opinion that organization, Employee

Development is seen as a key to success rather than a cost.

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04.04 (f) The training I receive reinforces and enhances my customer focus and service

excellence skills

Tab.04.18

Option Frequency Percentage

Strongly Agree 166 36.9%

Agree 142 31.6%

Neither 24 5.3%

Disagree 82 18.2%

Strongly Disagree 36 8.0%

Total 450 100%

As per the Table No: 04.18 and Fig No-04.18 , among the total population 166 nos (36.9%)

respondents were strongly agree and 142 nos (31.6%) respondents were agree that the training

they received reinforces and enhances their customer focus and service excellence skills. 82 nos

(18.2 %) respondents were disagree and 36 nos (08 %) were strongly disagree that the training

they received reinforces and enhances their customer focus and service excellence skills.

(Fig- 04.18).

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04.04(g) Scope for career paths or chances of promotions are existing for someone like

you in this company

Tab.04.19

Option Frequency Percentage

Strongly Agree 221 49.1%

Agree 152 33.8%

Neither 13 2.9%

Disagree 48 10.7%

Strongly Disagree 16 3.6%

Total 450 100%

As per the Table No: 04.19 and Fig No-04.19 , among the total population 221 nos (49.1%)

respondents were strongly agree and 152 nos (33.8%) respondents were agree that the scope for

career paths or chances of promotions are existing in the company. 13 nos (2.9 %) respondents

were natural,48 nos (10.7 %) respondents were disagree and 16 nos (3.6%) were strongly

disagree that the scope for career paths or chances of promotions are existing in the company.

(Fig- 04.19).

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04.04 (h) In your organization, career moves are based on competency and merit and

handled fairly, equitable and without any discrimination

Tab.04.20

Option Frequency Percentage

Strongly Agree 115 25.6%

Agree 183 40.7%

Neither 5 1.1%

Disagree 48 10.7%

Strongly Disagree 16 3.6%

Total 450 100%

(Fig- 04.20).

Table No: 04.20 and Fig No-04.20 shows that 115 nos (25.6 %) respondents were strongly

agree , 183 nos (40.7%) respondents were agree that the career moves are based on competency

and merit and handled fairly, equitable and without any discrimination within the organization.

48 nos (10.7 %)respondents were disagree and 16 nos (3.6 %) were strongly disagree that the

career moves are based on competency and merit and handled fairly, equitable and without any

discrimination within the organization .

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04.05 Performance Management

04.05(a) Your organization conducts regular and timely performance appraisals and

feedback sessions.

Tab.04.21

Option Frequency Percentage

Strongly Agree 108 24.0%

Agree 106 23.6%

Neither 0 0.0%

Disagree 113 25.1%

Strongly Disagree 123 27.3%

Total 450 100%

As per the Table No: 04.20 and Fig No-04.20 , among the total population 108 nos (24%)

respondents were strongly agree and 106 nos (23.6%) respondents were agree that their

organization conducts regular and timely performance appraisals and feedback sessions.113 nos

(25.1%) respondents were disagree and 123 nos (27.3%) were strongly disagree that their

organization conducts regular and timely performance appraisals and feedback sessions.

(Fig- 04.20).

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04.05(b) Your organization Sets and clearly communicates expectations, performance

goals, and measurements at the beginning of the Fiscal year?

Tab.04.21

Option Frequency Percentage

Strongly Agree 101 22.4%

Agree 98 21.8%

Neither 8 1.8%

Disagree 120 26.7%

Strongly Disagree 123 27.3%

Total 450 100%

According to Table : 04.21 and Fig No-04.21 shows that 101nos (22.4 %) respondents strongly

agree and 98 nos (21.8 %) respondents agrees that the organization Sets and clearly

communicates expectations, performance goals, and measurements at the beginning of the Fiscal

year .120 nos (26.7%) respondents were disagree ,123 nos (27.3 %) were strongly disagree that

the organization Sets and clearly communicates expectations, performance goals, and

measurements at the beginning of the Fiscal year.

(Fig- 04.21).

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04.05(c) Whether the Performance rating is used for Promotions, training, placement etc.

Tab.04.22

Option Frequency Percentage

Strongly Agree 100 22.2%

Agree 62 13.8%

Neither 25 5.6%

Disagree 130 28.9%

Strongly Disagree 133 29.6%

Total 450 100%

Table No: 04.22 and Fig No-04.22 shows that, 100 nos (22.2%) respondents were strongly agree

, 62 Nos (13.8%) respondents were agree that the Performance rating is used for Promotions,

training, placement etc.25 nos (5.6%) were neutral ,130 nos (28.9%) respondents were disagree

,133 nos (29.6%) respondents were strongly disagree that the Performance rating is used for

Promotions, training, placement .

(Fig- 04.22).

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04.05(d) Does the present Appraisal system adequately serve the purpose of Measuring the

Performance and Initiating developmental measures?

Tab.04.23

Option Frequency Percentage

Strongly Agree 59 13.1%

Agree 121 26.9%

Neither 21 4.7%

Disagree 129 28.7%

Strongly Disagree 120 26.7%

Total 450 100%

(Fig- 04.23).

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04.05(e) Your organization has clear guidelines on Performance Improvement Plan

(PIP)and Training after the appraisal Process has been completed

Tab.04.24

Option Frequency Percentage

Strongly Agree 32 7.1%

Agree 67 14.9%

Neither 35 7.8%

Disagree 201 44.7%

Strongly Disagree 115 25.6%

Total 450 100%

As per the Table No: 04.24 and Fig No-04.24 , among the total population 32 nos (07.1%) were

strongly agree ,67 nos (14.9 %) were agree ,35 nos (7.8 %) were neutral,201 nos (44.7%) were

disagree and 115.Nos (25.6 %) were strongly disagree that the organization has clear guidelines

on Performance Improvement Plan (PIP)and Training after the appraisal Process has been

completed

(Fig- 04.24).

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04.05(f) Your organization defines roles, obligations, expectations and responsibilities of

employees aligned with Vision and Mission.

Tab.04.25

Option Frequency Percentage

Strongly Agree 163 36.2%

Agree 178 39.6%

Neither 42 9.3%

Disagree 35 7.8%

Strongly Disagree 32 7.1%

Total 450 100%

According to Table : 04.25 and Fig No-04.25 shows that 163 nos (36.2 %) respondents strongly

agree and 178 nos (39.6 %) respondents agrees that organization defines roles, obligations,

expectations and responsibilities of employees aligned with Vision and Mission.42 nos (9.3 %)

respondents were neutral 35 nos (7.8%) respondents were disagree ,32 nos (7.1 %) were

strongly disagree that the organization defines roles, obligations, expectations and

responsibilities of employees aligned with Vision and Mission.

(Fig- 04.25).

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04.06 Motivation and employees engagement

04.06(a) In your Branch/Office, you participates in deciding how the work gets done.

Tab.04.26

Option Frequency Percentage

Strongly Agree 188 41.8%

Agree 199 44.2%

Neither 49 10.9%

Disagree 5 1.1%

Strongly Disagree 9 2.0%

Total 450 100%

Table No: 04.26 and Fig No-04.26 shows that 188 nos (41.8 % ) respondents were strongly agree

and 199 nos (44.2 %) respondents were agree that they are participating in deciding how the

work gets done at their Branches and Department.49 nos (10.9 %) respondents were neutral ,5

nos (1.1%) respondents were disagree and 9 nos (2.0 %) were strongly disagree that they are

participating in deciding how the work gets done at their Branches and Department.

(Fig- 04.26).

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04.06(b) Your co-workers and you work well with superiors together to accomplish our

organization's goals.

Tab.04.27

Option Frequency Percentage

Strongly Agree 221 49.1%

Agree 220 48.9%

Neither 9 2.0%

Disagree 0 0.0%

Strongly Disagree 0 0.0%

Total 450 100%

Table No: 04.27 and Fig No-04.27 shows that 221 nos (49.1% ) respondents were strongly agree

and 220 nos (48.9 %) respondents were agree that they are work well with superiors together to

accomplish our organization's goals..9 nos (02 %) respondents were neutral opinion that they are

work well with superiors together to accomplish our organization's goals.

(Fig- 04.27).

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04.06(c) Your department staff meetings generally encourage open and honest

participation and also used as a forum to resolve conflicts honestly, effectively and quickly,

whenever necessitated

Tab.04.28

Option Frequency Percentage

Strongly Agree 145 32.2%

Agree 163 36.2%

Neither 32 7.1%

Disagree 70 15.6%

Strongly Disagree 40 8.9%

Total 450 100%

Table No: 04.28 and Fig No-04.28 shows that 145 nos (32.2 % ) respondents were strongly agree

and 163 nos (36.2 %) respondents were agrees that the department staff meetings generally

encourage open and honest participation and also used as a forum to resolve conflicts honestly,

effectively and quickly, whenever necessitated .32 nos (7.1%) respondents were neutral ,70 nos

(15.6 % )respondents were disagree and 40 nos (8.9%) respondents were strongly disagrees that

the department staff meetings generally encourage open and honest participation and also used

as a forum to resolve conflicts honestly, effectively and quickly, whenever necessitated

(Fig- 04.28).

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04.06(d) You are adequately recognized by your superiors for your good work

Tab.04.29

Option Frequency Percentage

Strongly Agree 189 42.0%

Agree 169 37.6%

Neither 33 7.3%

Disagree 36 8.0%

Strongly Disagree 23 5.1%

Total 450 100%

Table No: 04.29 and Fig No-04.29 shows that 189 nos (42.2 % ) respondents were strongly agree

and 169 nos (37.6%) respondents were agrees with the opinion that the staffs are adequately

recognized by their superiors for your good work .33 nos (7.3%) respondents were neutral ,36

nos (8.0 %) respondents were disagree 23 nos (5.1%) respondents were strongly disagree that

the staffs are adequately recognized by their superiors for your good work .

(Fig- 04.29).

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04.06(e) The amount of pay you receive for your job is at par compared to others doing

similar work in our industry.

Tab.04.30

Option Frequency Percentage

Strongly Agree 76 16.9%

Agree 39 8.7%

Neither 38 8.4%

Disagree 186 41.3%

Strongly Disagree 111 24.7%

Total 450 100%

Table No: 04.30 and Fig No-04.30 shows that 76 nos (16.9 % ) respondents were strongly agree

and 39 nos (8.7%) respondents were agrees that the amount of pay you receive for your job is at

par compared to others doing similar work in our industry 186 nos (41.3%) respondents were

neutral ,36 nos (8.0 %) respondents were disagree 23 nos (5.1%) respondents were strongly

disagree that the staffs are adequately recognized by their superiors for your good work .

(Fig- 04.30).

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04.06(f) You feel, you are adequately paid compared to your colleagues in other

companies.

Tab.04.31

Option Frequency Percentage

Strongly Agree 81 18.0%

Agree 34 7.6%

Neither 41 9.1%

Disagree 199 44.2%

Strongly Disagree 95 21.1%

Total 450 100%

Table No: 04.31 and Fig No-04.31 shows that 81 nos (18 % ) respondents were strongly agree

and 34 nos (7.6%) respondents were agrees that the staffs are adequately paid compared to their

colleagues in other companies.41 nos (9.1%) respondents were neutral ,199 nos (44.2%)

respondents were disagree 95 nos (21.1%) respondents were strongly disagree that the staffs are

adequately paid compared to their colleagues in other companies.

(Fig- 04.31).

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04.06(g) Your organization is organizing employee engagement activates for boosting the

employee morale and sense of belongingness.

Tab.04.32

Option Frequency Percentage

Strongly Agree 145 32.2%

Agree 101 22.4%

Neither 8 1.8%

Disagree 128 28.4%

Strongly Disagree 68 15.1%

Total 450 100%

Table No: 04.32 and Fig No-04.32 shows that 145 nos (32.2 % ) respondents were strongly agree

and 101 nos (22.4%) respondents were agrees that the organization is organizing employee

engagement activates for boosting the employee morale and sense of belongingness 8 nos (1.8%)

respondents were neutral ,128 nos (28.4%) respondents were disagree 68 nos (15.1%)

respondents were strongly disagree that the Your organization is organizing employee

engagement activates for boosting the employee morale and sense of belongingness.

(Fig- 04.32).

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04.06(h) You feel and experience a better job security in your company?

Tab.04.33

Option Frequency Percentage

Strongly Agree 85 18.9%

Agree 35 7.8%

Neither 67 14.9%

Disagree 145 32.2%

Strongly Disagree 118 26.2%

Total 450 100%

Table No: 04.33 and Fig No-04.33 shows that 85 nos (18.9 % ) respondents were strongly agree

and 35 nos (7.8%) respondents were agrees that they feels and experience a better job security in

their company.67 nos (14.9%) respondents were neutral ,145 nos (32.2%) respondents were

disagree 118 nos (26.2%) respondents were strongly disagree that the they feels and experience

a better job security in their company.

(Fig- 04.33).

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04.07 Grievance handling and Communication

04.07(a) The Companies does a good job by communicating about changes or decisions

that affect employees.

Tab.04.34

Option Frequency Percentage

Strongly Agree 114 25.3%

Agree 170 37.8%

Neither 47 10.4%

Disagree 76 16.9%

Strongly Disagree 43 9.6%

Total 450 100%

As per the Table No: 04.34 and Fig No-04.34, among the total population 114 nos (25.3%) were

strongly agree, 170 nos (37.8 %) were agree, 47 nos (10.4 %) were neutral,76 nos (16.9%) were

disagree and 43.Nos (9.6 %) were strongly disagree that the company is doing a good job by

communicating properly about the changes or decisions which is affecting the employees.

(Fig- 04.34).

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04.07(b) The grievance process used at the Company is fair and equitable to reduce and

resolve employee grievances

Tab.04.35

Option Frequency Percentage

Strongly Agree 114 25.3%

Agree 157 34.9%

Neither 21 4.7%

Disagree 101 22.4%

Strongly Disagree 57 12.7%

Total 450 100%

Reference to the Table No: 04.35 and Fig No-04.35 , among the total population 114 nos

(25.3%) were strongly agree ,157 nos (34.9 %) were agree ,21 nos (4.7 %) were neutral,101 nos

(22.4%) were disagree and 57.Nos (12.7 %) were strongly disagree that the the grievance

process used at the Company is fair and equitable to reduce and resolve employee grievances

(Fig- 04.35).

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04.07(c) You feel free to express your opinions without worrying about negative

actions/responses

Tab.04.36

Option Frequency Percentage

Strongly Agree 221 49.1%

Agree 171 38.0%

Neither 32 7.1%

Disagree 18 4.0%

Strongly Disagree 8 1.8%

Total 450 100%

According to the Table No: 04.36 and Fig No-04.36 , among the total population 221 nos

(49.1%) were strongly agree ,171 nos (38 %) were agree ,32 nos (7.1 %) were neutral,18 nos

(4%) were disagree and 8Nos (1.8 %) were strongly disagree that employees can feel free to

express your opinions without worrying about negative actions/responses.

(Fig- 04.36).

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04.07(d) Management communicates a consistent and clear strategic direction

Tab.04.37

Option Frequency Percentage

Strongly Agree 178 39.6%

Agree 192 42.7%

Neither 22 4.9%

Disagree 38 8.4%

Strongly Disagree 18 4.0%

Total 450 100%

(Fig- 04.37).

According to the Table No: 04.37 and Fig No-04.37 , among the total population 178 nos

(39.6%) were strongly agree ,192 nos (42.7 %) were agree ,22nos (4.9 %) were neutral,38 nos

(8.4%) were disagree and 18 Nos (4%) were strongly disagree that Management communicates

a consistent and clear strategic direction.

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04.07(e) How would you rate the organization's “communications tools”in providing you

with an effective means of communication?

Tab.04.38

Option Frequency Percentage

Poor 4 0.9%

Un Satisfactory 15 3.3%

Average 146 32.4%

Good 200 44.4%

Excellent 85 18.9%

Total 450 100%

According to the Table No: 04.38 and Fig No-04.38 , among the total population 4 nos (0.9%)

were rated poor ,15 nos (3.3%) were rated unsatisfactory ,146 nos (32.4 %) were responded with

an opinion of average ,200 nos (44.4%) were rated with opinion of good 85 Nos (18.9%) were

responded excellent opinion about the organization's “communications tools” in providing with

an effective means of communication.

(Fig- 04.38).

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04.08 About the Company, Vision and Management

04.08(a) My organization encourages employees to work to the best of their abilities

Tab.04.39

Option Frequency Percentage

Strongly Agree 112 24.9%

Agree 123 27.3%

Neither 45 10.0%

Disagree 143 31.8%

Strongly Disagree 27 6.0%

Total 450 100%

(Fig- 04.39).

Table No: 04.39 and Fig No-04.39 shows that 112 nos (24.9 % ) respondents were strongly agree

and 123 nos (27.3%) respondents were agrees that their organization encourages employees to

work to the best of their abilities. 45 nos (10%) respondents were neutral ,143 nos (31.8 %)

respondents were disagree 27 nos (6%) respondents were strongly disagree that their

organization encourages employees to work to the best of their abilities.

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04.08(b) I am held accountable for achieving specific results.

Tab.04.40

Option Frequency Percentage

Strongly Agree 189 42.0%

Agree 179 39.8%

Neither 54 12.0%

Disagree 21 4.7%

Strongly Disagree 7 1.6%

Total 450 100%

(Fig- 04.40).

According to Table No: 04.40 and Fig No-04.40 shows that 189 nos (42 % ) respondents were

strongly agree and 179 nos (39.8%) respondents were agrees that the employees are held

accountable for achieving specific results. 54 nos (12%) respondents were neutral ,21 nos (4.7

%) respondents were disagree 7 nos (1.6%) respondents were strongly disagree that the

employees are held accountable for achieving specific results.

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04.08(c) We work to anticipate problems and develop appropriate solutions.

Tab.04.41

Option Frequency Percentage

Strongly Agree 187 41.6%

Agree 128 28.4%

Neither 34 7.6%

Disagree 87 19.3%

Strongly Disagree 14 3.1%

Total 450 100%

(Fig- 04.41).

According to Table No: 04.41 and Fig No-04.41 shows that out of total population 187 nos (41.6

% ) respondents were strongly agree and 128 nos (28.4%) respondents were agrees that the

respondents are anticipating problems during their career and develop appropriate solutions

accordingly. 34 nos (7.6%) respondents were neutral ,87 nos (19.3 %) respondents were disagree

14 nos (3.1%) respondents were strongly disagree that the that the respondents are anticipating

problems during their career and develop appropriate solutions accordingly.

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04.08(d) How would you rate your authority to maintain quality of products and services

in my work area?

Tab.04.42

Option Frequency Percentage

Poor 89 19.8%

Un Satisfactory 134 29.8%

Average 61 13.6%

Good 112 24.9%

Excellent 54 12.0%

Total 450 100%

According to the Table No: 04.42 and Fig No-04.42 , among the total population 82 nos (19.8%)

were rated poor ,134 nos (29.8%) were rated unsatisfactory ,61 nos (13.6 %) were responded

with an opinion of average ,112 nos (24.9%) were rated with opinion of good 54 Nos (12%)

were responded excellent opinion about the authority to maintain quality of products and

services on their work area..

(Fig- 04.42).

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04.08(e) My organization treats employees with fairness and respect

Tab.04.43

Option Frequency Percentage

Strongly Agree 145 32.2%

Agree 135 30.0%

Neither 21 4.7%

Disagree 91 20.2%

Strongly Disagree 58 12.9%

Total 450 100%

(Fig- 04.43).

According to Table No: 04.43 and Fig No-04.43 shows that out of total population 145 nos (32.2

%) respondents were strongly agree and 135 nos (30%) respondents were agrees that the

organization treats its employees with fairness and respect. 21 nos (4.7%) respondents were

neutral ,91 nos (20.2 %) respondents were disagree 58 nos (12.9%) respondents were strongly

disagree that the organization treats its employees with fairness and respect.

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04.08(f) How would you rate the company on Work atmosphere, Working hours, use of

Information Technology etc

Tab.04.44

Option Frequency Percentage

Poor 42 9.3%

Un Satisfactory 54 12.0%

Average 201 44.7%

Good 112 24.9%

Excellent 41 9.1%

Total 450 100%

According to the Table No: 04.44 and Fig No-04.44 , among the total population 42 nos

(09.3%) were rated poor ,54 nos (12 %) were rated unsatisfactory ,201 nos (44.7%) were

responded with an opinion of average ,112 nos (24.9%) were rated with opinion of good 41

Nos (9.1%) were responded excellent opinion about the organization's Work atmosphere,

Working hours, use of Information Technology etc.

(Fig- 04.44).

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04.08(g) Our Management is able to communicate a shared vision of the company to

employees at all levels.

Tab.04.45

Option Frequency Percentage

Strongly Agree 178 39.6%

Agree 173 38.4%

Neither 8 1.8%

Disagree 67 14.9%

Strongly Disagree 24 5.3%

Total 450 100%

(Fig- 04.45).

According to Table No: 04.45 and Fig No-04.45 shows that out of total population 178 nos (39.6

% ) respondents were strongly agree and 173 nos (38.4%) respondents were agrees that the

Management is able to communicate a shared vision of the company to employees at all levels..8

nos (1.8%) respondents were neutral, 67 nos (14.9 %) respondents were disagree 24 nos (5.3%)

respondents were strongly disagree that the Management is able to communicate a shared vision

of the company to employees at all levels.

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04.08(h) The Mission Statement and values of our Company is supported by Managers

and Senior Leadership.

Tab.04.46

Option Frequency Percentage

Strongly Agree 185 41.1%

Agree 185 41.1%

Neither 5 1.1%

Disagree 51 11.3%

Strongly Disagree 24 5.3%

Total 450 100%

According to Table No: 04.46 and Fig No-04.46 shows that out of total population 185 nos (41.1

% ) respondents were strongly agree and agrees that the Mission Statement and values of our

Company is supported by Managers and Senior Leadership.5 nos (1.1%) respondents were

neutral, 51 nos (11.3 %) respondents were disagree 24 nos (5.3%) respondents were strongly

disagree that the Mission Statement and values of our Company is supported by Managers and

Senior Leadership.

(Fig- 04.46).

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04.08(J) Goals and objectives are integrated and aligned with Company Mission Statement and

values

Tab.04.47

Option Frequency Percentage

Strongly Agree 165 36.7%

Agree 217 48.2%

Neither 12 2.7%

Disagree 45 10.0%

Strongly Disagree 11 2.4%

Total 450 100%

According to Table No: 04.47 and Fig No-04.47 shows that out of total population 165 nos (36.7

% ) respondents were strongly agree and 217 nos (48.2%) respondents were agrees that the

Goals and objectives are integrated and aligned with Company Mission Statement and values.12

nos (2.7%) respondents were neutral, 45 nos (10. %) respondents were disagree 11 nos (2.4%)

respondents were strongly disagree that that the Goals and objectives are integrated and aligned

with Company Mission Statement and values.

(Fig- 04.47).

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04.08(k) My Manager shows fairness and respect in their interactions with employees.

Tab.04.48

Option Frequency Percentage

Strongly Agree 143 31.8%

Agree 150 33.3%

Neither 62 13.8%

Disagree 79 17.6%

Strongly Disagree 16 3.6%

Total 450 100%

According to Table No: 04.48 and Fig No-04.48 shows that out of total population 143 nos (31.8

% ) respondents were strongly agree and 150 nos (33.3%) respondents were agrees that their

Manager (Immediate superiors) shows fairness and respect in their interactions with

employees.62 nos (13.8%) respondents were neutral, 79 nos (17.6%) respondents were disagree

16 nos (3.6%) respondents were strongly disagree that their Manager (Immediate superiors)

shows fairness and respect in their interactions with employees.

(Fig- 04.48).

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04.08(l) My Management team works together to create a sense of teamwork and company

spirit

Tab.04.49

Option Frequency Percentage

Strongly Agree 113 25.1%

Agree 121 26.9%

Neither 55 12.2%

Disagree 116 25.8%

Strongly Disagree 45 10.0%

Total 450 100%

According to Table No: 04.49 and Fig No-04.49 shows that out of total population 113 nos (25.1

% ) respondents were strongly agree and 121 nos (26.9 %) respondents were agrees that their

Management team works together to create a sense of teamwork and company spirit..55 nos

(12.2%) respondents were neutral, 116 nos (25.8%) respondents were disagree 45 nos (10%)

respondents were strongly disagree that their Management team works together to create a sense

of teamwork and company spirit.

(Fig- 04.49).

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04.08(m) My organizational culture enhances employee commitment and Team work

Tab.04.50

Option Frequency Percentage

Strongly Agree 113 25.1%

Agree 145 32.2%

Neither 67 14.9%

Disagree 87 19.3%

Strongly Disagree 38 8.4%

Total 450 100%

(Fig- 04.50).

As per Table No: 04.50 and Fig No-04.50 shows that out of total population 113 nos (25.1 % )

respondents were strongly agree and 145 nos (32.2 %) respondents were agrees that their

organizational culture enhances employee commitment and Team work

67 nos (14.9%) respondents were neutral, 87 nos (19.3%) respondents were disagree 38 nos

(8.4%) respondents were strongly disagree that their organizational culture enhances employee

commitment and Team work.

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4.9 Job Satisfaction and Employee Relations

04.09(a) I feel that there is a spirit of “we’re all in this together” in the organization.

Tab.04.51

Option Frequency Percentage

Strongly Agree 102 22.7%

Agree 132 29.3%

Neither 163 36.2%

Disagree 28 6.2%

Strongly Disagree 25 5.6%

Total 450 100%

(Fig- 04.51).

As per the Table No: 04.51 and Fig No-04.51, among the total population 102 nos (22.7%) were

strongly agree ,132 nos (29.3 %) were agree ,163 nos (36.2 %) were neutral,28 nos (6.2%) were

disagree and 25.Nos (5.6 %) were strongly disagree that there is a spirit of “we’re all in this

together” in the organization.

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04.09(b) I would recommend my Company as a great place to work.

Tab.04.52

Option Frequency Percentage

Strongly Agree 112 24.9%

Agree 115 25.6%

Neither 176 39.1%

Disagree 28 6.2%

Strongly Disagree 19 4.2%

Total 450 100%

As per the Table No: 04.52 and Fig No-04.52 , among the total population 112 nos (24.9 %)

were strongly agree ,115 nos (25.6 %) were agree ,176 nos (39.1 %) were neutral,28 nos (6.2%)

were disagree and 19.Nos (4.2 %) were strongly disagree that the respondents would recommend

their Company as a great place to work.

(Fig- 04.52).

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04.09(c) I enjoy participating in Company’ sponsored events and social activities.

Tab.04.53

Option Frequency Percentage

Strongly Agree 165 36.7%

Agree 188 41.8%

Neither 50 11.1%

Disagree 28 6.2%

Strongly Disagree 19 4.2%

Total 450 100%

Table No: 04.53 and Fig No-04.53 shows that 165 nos (36.7 % ) respondents were strongly agree

and 188 nos (41.8 %) respondents were agrees that they enjoy participating in Company’

sponsored events and social activities. 50 nos (11.1%) respondents were neutral ,28 nos (6.2%)

respondents were disagree 19 nos (4.2%) respondents were strongly disagree that they enjoy

participating in Company’ sponsored events and social activities.

(Fig- 04.53).

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04.09(d) I am satisfied with the organizational structure, Polices and procedures

Tab.04.54

Option Frequency Percentage

Strongly Agree 47 10.4%

Agree 165 36.7%

Neither 76 16.9%

Disagree 128 28.4%

Strongly Disagree 34 7.6%

Total 450 100%

Table No: 04.54 and Fig No-04.54 shows that 47 nos (10.4 % ) respondents were strongly agree

and 165 nos (36.7 %) respondents were agrees that they are satisfied with the organizational

structure, Polices and procedures. 76 nos (16.9%) respondents were neutral ,128 nos (28.4%)

respondents were disagree 34 nos (7.6%) respondents were strongly disagree that they are

satisfied with the organizational structure, Polices and procedures.

(Fig- 04.54).

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04.09(e) Our organization has clear policy on employee transfer and job rotation.

Tab.04.55

Option Frequency Percentage

Strongly Agree 67 14.9%

Agree 148 32.9%

Neither 76 16.9%

Disagree 115 25.6%

Strongly Disagree 44 9.8%

Total 450 100%

Table No: 04.55 and Fig No-04.55 shows that 67 nos (10.4 % ) respondents were strongly agree

and 148 nos (32.9 %) respondents were agrees that their organization has clear policy on

employee transfer and job rotation. 76 nos (16.9%) respondents were neutral ,115 nos (25.6%)

respondents were disagree 44 nos (9.8%) respondents were strongly disagree that that their

organization has clear policy on employee transfer and job rotation.

(Fig- 04.55).

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04.09(f) Employees and immediate supervisors resolve issues quickly without resorting to

anger, intimidation, or retribution

Tab.04.56

Option Frequency Percentage

Strongly Agree 124 27.6%

Agree 178 39.6%

Neither 50 11.1%

Disagree 54 12.0%

Strongly Disagree 44 9.8%

Total 450 100%

Table No: 04.56 and Fig No-04.56 shows that 124 nos (27.6 % ) respondents were strongly agree

and 178 nos (39.6 %) respondents were agrees that their employees and immediate supervisors

resolve issues quickly without resorting to anger, intimidation, or retribution 50 nos (11.1%)

respondents were neutral ,54 nos (12 %) respondents were disagree 44 nos (9.8%) respondents

were strongly disagree that that their Employees and immediate supervisors resolve issues

quickly without resorting to anger, intimidation, or retribution.

(Fig- 04.56).

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04.09(g) My immediate supervisor values my contributions and encourages ideas about

how to improve work in my department.

Tab.04.57

Option Frequency Percentage

Strongly Agree 99 22.0%

Agree 143 31.8%

Neither 112 24.9%

Disagree 52 11.6%

Strongly Disagree 44 9.8%

Total 450 100%

Table No: 04.57 and Fig No-04.57 shows that 99 nos (22.0 % ) respondents were strongly agree

and 143 nos (31.8 %) respondents were agrees that their immediate supervisor values their

contributions and encourages ideas about how to improve work in their department.112 nos

(24.9%) respondents were neutral ,52 nos (11.6 %) respondents were disagree 44 nos (9.8%)

respondents were strongly disagree that their immediate supervisor values their contributions and

encourages ideas about how to improve work in their department

(Fig- 04.57).

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04.09(h) My Superior show fairness and respect in their interactions with employees

Tab.04.58

Option Frequency Percentage

Strongly Agree 100 22.2%

Agree 140 31.1%

Neither 110 24.4%

Disagree 55 12.2%

Strongly Disagree 45 10.0%

Total 450 100%

According to Table No: 04.58 and Fig No-04.58 shows that 100 nos (22.2 % ) respondents were

strongly agree and 140 nos (31.1 %) respondents were agrees that their Superior show fairness

and respect in their interactions with employees .110 nos (24.4%) respondents were neutral ,55

nos (12.2 %) respondents were disagree 45 nos (10%) respondents were strongly disagree that

their Superior show fairness and respect in their interactions with employees.

(Fig- 04.58).

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04.09(i) Conflicts are resolved in a positive and constructive manner at the work place itself

Tab.04.59

Option Frequency Percentage

Strongly Agree 200 44.4%

Agree 201 44.7%

Neither 45 10.0%

Disagree 2 0.4%

Strongly Disagree 2 0.4%

Total 450 100%

According to Table No: 04.59 and Fig No-04.59 shows that 200 nos (44.4 % ) respondents were

strongly agree and 201 nos (44.7 %) respondents were agrees that their Conflicts are resolved in a

positive and constructive manner at the work place itself.45 nos (10%) respondents were neutral ,2 nos

(0.4%) respondents were disagree 2 nos (0.4) respondents were strongly disagree that their Conflicts

are resolved in a positive and constructive manner at the work place itself.

(Fig- 04.59).

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04.09(j) How would you rate your satisfaction with the opportunity to use your skills and

abilities in your job?

Tab.04.60

Option Frequency Percentage

Poor 44 9.8%

Un Satisfactory 80 17.8%

Average 202 44.9%

Good 112 24.9%

Excellent 12 2.7%

Total 450 100%

According to the Table No: 04.60 and Fig No-04.60 , among the total population 44 nos

(09.8%) were rated poor ,80 nos (17.8 %) were rated unsatisfactory ,202 nos (44.9%) were

responded with an opinion of average ,112 nos (24.9%) were rated with opinion of good 12

Nos (2.7%) were responded excellent opinion about the level of your satisfaction with the

opportunity to use their skills and abilities in their job.

(Fig- 04.60).

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04.09(k) How would you rate your sense of accomplishment in your job?

Tab.04.61

Option Frequency Percentage

Poor 31 6.9%

Un Satisfactory 45 10.0%

Average 199 44.2%

Good 133 29.6%

Excellent 42 9.3%

Total 450 100%

According to the Table No: 04.61 and Fig No-04.61, among the total population 31 nos (06.9%)

were rated poor ,45 nos (10 %) were rated unsatisfactory ,199 nos (44.2%) were responded with

an opinion of average ,133 nos (29.6%) were rated with opinion of good 42 Nos (9.3%) were

responded excellent opinion about their sense of accomplishment in their job

(Fig- 04.61).

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04.09(l) How would you rate your overall job satisfaction in your present position?

Tab.04.62

Option Frequency Percentage

Poor 24 5.3%

Un Satisfactory 34 7.6%

Average 175 38.9%

Good 167 37.1%

Excellent 50 11.1%

Total 450 100%

According to the Table No: 04.62 and Fig No-04.62, among the total population 24 nos (05.3%)

were rated poor ,34 nos (7.6%) were rated unsatisfactory ,175 nos (38.9%) were responded with

an opinion of average ,167 nos (37.1%) were rated with opinion of good 50 Nos (11.1%) were

rated excellent opinion about their overall job satisfaction in their present position

(Fig- 04.62).

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04.09(m) How would you rate the morale in your team?

Tab.04.63

Option Frequency Percentage

Poor 23 5.1%

Un Satisfactory 60 13.3%

Average 155 34.4%

Good 162 36.0%

Excellent 50 11.1%

Total 450 100%

According to the Table No: 04.63 and Fig No-04.63, among the total population 23 nos (05.1%)

were rated poor ,60 nos (13.3%) were rated unsatisfactory ,155 nos (34.4%) were responded with

an opinion of average ,162 nos (36%) were rated with opinion of good 50 Nos (11.1%) were

rated excellent opinion about their morale in their team.

(Fig- 04.63).

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04.09(n) I feel a strong sense of belongingness to Company

Tab.04.64

Option Frequency Percentage

Strongly Agree 186 41.3%

Agree 189 42.0%

Neither 22 4.9%

Disagree 35 7.8%

Strongly Disagree 18 4.0%

Total 450 100%

According to Table No: 04.64 and Fig No-04.64 shows that 186 nos (41.3 % ) respondents were

strongly agree and 189 nos (42 %) respondents were agrees that they feel a strong sense of

belongingness to Company.22 nos (4.9%) respondents were neutral ,35 nos (7.8%) respondents were

disagree 18 nos (4 %) respondents were strongly disagree that they feel a strong sense of

belongingness to Company.

(Fig- 04.64).

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04.09(o) I would recommend others to join and work in our Organization

Tab.04.65

Option Frequency Percentage

Strongly Agree 98 21.8%

Agree 178 39.6%

Neither 84 18.7%

Disagree 56 12.4%

Strongly Disagree 34 7.6%

Total 450 100%

According to Table No: 04.65 and Fig No-04.65 shows that 98 nos (21.8% ) respondents were

strongly agree and 178 nos (39.6 %) respondents were agrees that they honestly would recommend

others to join and work in their Organization.84 nos (18.7%) respondents were neutral ,56 nos (12.4%)

respondents were disagree 34 nos (7.6 %) respondents were strongly disagree that they honestly

would recommend others to join and work in their Organization.

(Fig- 04.65).

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04.09(p) I am satisfied with my compensation and benefits, which I am receiving at

present

Tab.04.66

Option Frequency Percentage

Strongly Agree 67 14.9%

Agree 59 13.1%

Neither 46 10.2%

Disagree 210 46.7%

Strongly Disagree 68 15.1%

Total 450 100%

According to Table No: 04.66 and Fig No-04.66 shows that 67 nos (14.9% ) respondents were

strongly agree and 59 nos (13.1 %) respondents were agrees that they are satisfied with their

compensation and benefits, which they are receiving at present.46 nos (10.2%) respondents were

neutral ,210 nos (46.7%) respondents were disagree 68 nos (15.1 %) respondents were strongly

disagree that they are satisfied with their compensation and benefits, which they are receiving at

present

(Fig- 04.66).

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04.09(q) I am satisfied with my compensation and benefits when compared with Industry

standards

Tab.04.67

Option Frequency Percentage

Strongly Agree 65 14.4%

Agree 60 13.3%

Neither 45 10.0%

Disagree 210 46.7%

Strongly Disagree 70 15.6%

Total 450 100%

As per Table No: 04.67 and Fig No-04.67 shows that 65 nos (14.4% ) respondents were strongly

agree and 60 nos (13.3 %) respondents were agrees that they are satisfied with their

compensation and benefits when compared with Industry standards. 45 nos (10.%) respondents

were neutral ,210 nos (46.7%) respondents were disagree 70 nos (15.6 %) respondents were

strongly disagree that they are satisfied with their compensation and benefits when compared

with Industry standards

(Fig- 04.67).

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04.09(r) I am satisfied with my organizations leave Policy

Tab.04.68

Option Frequency Percentage

Strongly Agree 138 30.7%

Agree 126 28.0%

Neither 35 7.8%

Disagree 110 24.4%

Strongly Disagree 41 9.1%

Total 450 100%

As per Table No: 04.68 and Fig No-04.68 shows that 138 nos (30.7% ) respondents were strongly

agree and 126 nos (28 %) respondents were agrees that they are satisfied with the companies leave

policy. 35 nos (7.8.%) respondents were neutral ,110 nos (24.4 %) respondents were disagree 41

nos (9.1%) respondents were strongly disagree that they are satisfied with the companies leave

policy.

(Fig- 04.68).

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04.09(s) My organization conducts structured exit Interview and collect constructive

feedback.

Tab.04.69

Option Frequency Percentage

Strongly Agree 67 14.9%

Agree 118 26.2%

Neither 116 25.8%

Disagree 118 26.2%

Strongly Disagree 31 6.9%

Total 450 100%

As per Table No: 04.69 and Fig No-04.69 shows that 67 nos (14.9% ) respondents were strongly

agree and 118 nos (26.2 %) respondents were agrees that the organization conducts structured

exit Interview and collect constructive feedback.116 nos (25.8.%) respondents were neutral ,118

nos (26.2 %) respondents were disagree 31 nos (6.9%) respondents were strongly disagree that

the organization conducts structured exit Interview and collect constructive feedback.

(Fig- 04.69).

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04.09(t) Exit Interview feedbacks are used for making retention strategies

Tab.04.70

Option Frequency Percentage

Strongly Agree 57 12.7%

Agree 88 19.6%

Neither 95 21.1%

Disagree 156 34.7%

Strongly Disagree 54 12.0%

Total 450 100%

As per Table No: 04.70 and Fig No-04.70 shows that 57 nos (12.7% ) respondents were strongly

agree and 88 nos (19.6 %) respondents were agrees that the Exit Interview feedbacks are used

for making retention strategies 95 nos (21.1.%) respondents were neutral ,156 nos (34.7 %)

respondents were disagree 54 nos (12%) respondents were strongly disagree that the Exit

Interview feedbacks are used for making retention strategies.

(Fig- 04.70).

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04.10 Work life balance and employee Reward system

04.10(a) I receive support in meeting family and personal obligations

Tab.04.71

Option Frequency Percentage

Strongly Agree 99 22.0%

Agree 116 25.8%

Neither 102 22.7%

Disagree 101 22.4%

Strongly Disagree 32 7.1%

Total 450 100%

As per Table No: 04.71 and Fig No-04.71 shows that 99 nos (22% ) respondents were strongly

agree and 116 nos (25.8 %) respondents were agrees that the employees are receiving support in

meeting family and personal obligations 102 nos (22.7.%) respondents were neutral ,101 nos

(22.4 %) respondents were disagree 32 nos (7.1%) respondents were strongly disagree that the

employees are receiving support in meeting family and personal obligations.

(Fig- 04.71).

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04.10(b) I believe that Company is supportive of my life outside of work, wherever

necessary.

Tab.04.72

Option Frequency Percentage

Strongly Agree 67 14.9%

Agree 128 28.4%

Neither 54 12.0%

Disagree 145 32.2%

Strongly Disagree 56 12.4%

Total 450 100%

As per Table No: 04.72 and Fig No-04.72 shows that 67 nos (14.9% ) respondents were strongly

agree and 128 nos (28.4 %) respondents were agrees that the respondents believe that Company

is supportive in their life outside of work, wherever necessary. 54 nos (12.%) respondents were

neutral ,145 nos (32.2%) respondents were disagree 56 nos (12.4%) respondents were strongly

disagree that the respondents believe that Company is supportive in their life outside of work,

wherever necessary.

(Fig- 04.72).

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04.10(c ) My work arrangements allow me to balance my personal life with my work

Tab.04.73

Option Frequency Percentage

Strongly Agree 112 24.9%

Agree 175 38.9%

Neither 45 10.0%

Disagree 73 16.2%

Strongly Disagree 45 10.0%

Total 450 100%

As per Table No: 04.73 and Fig No-04.73 shows that 112 nos (24.9% ) respondents were

strongly agree and 175 nos (38.9 %) respondents were agrees that the respondents believe that )

their work arrangements allow them to balance their personal life with their work. 45 nos (10.%)

respondents were neutral ,73 nos (16.2%) respondents were disagree 45 nos (10%) respondents

were strongly disagree that that the respondents believe that their work arrangements allow them

to balance their personal life with their work..

(Fig- 04.73).

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04.10(d) I am able to balance the demands of my time between my work life and my

personal life

Tab.04.74

Option Frequency Percentage

Strongly Agree 114 25.3%

Agree 189 42.0%

Neither 36 8.0%

Disagree 76 16.9%

Strongly Disagree 35 7.8%

Total 450 100%

Reference to the Table No: 04.74 and Fig No-04.74 shows that 114 nos (25.3% ) respondents

were strongly agree and 189 nos (42 %) respondents were agrees that employees are able to

balance the demands of their time between their work life and their personal life.36 nos (8.%)

respondents were neutral ,76 nos (16.9%) respondents were disagree 35 nos (7.8%) respondents

were strongly disagree that employees are able to balance the demands of their time between

their work life and their personal life.

(Fig- 04.74).

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04.10(e) I would like to participate in a recreational league outside of work with my co-

workers

Tab.04.75

Option Frequency Percentage

Strongly Agree 156 34.7%

Agree 146 32.4%

Neither 22 4.9%

Disagree 66 14.7%

Strongly Disagree 60 13.3%

Total 450 100%

Reference to the Table No: 04.75 and Fig No-04.75 shows that 156 nos (34.7 % ) respondents

were strongly agree and 146 nos (32.4 %) respondents were agrees that they would like to

participate in a recreational league outside of work with my co-workers.22 nos (4.9.%)

respondents were neutral ,66 nos (14.7%) respondents were disagree 60 nos (13.3%) respondents

were strongly disagree that they would like to participate in a recreational league outside of work

with my co-workers.

(Fig- 04.75).

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04.10(f) Organization recognize the employees by providing monetary and non-monetary

rewards to excellent performers

Tab.04.76

Option Frequency Percentage

Strongly Agree 210 46.7%

Agree 206 45.8%

Neither 10 2.2%

Disagree 16 3.6%

Strongly Disagree 8 1.8%

Total 450 100%

Reference to the Table No: 04.76 and Fig No-04.76 shows that 210 nos (46.7 % ) respondents

were strongly agree and 206 nos (45.8 %) respondents were agrees that their organization

recognize the employees by providing monetary and non-monetary rewards to excellent

performers .10 nos (2.2.%) respondents were neutral ,16 nos (3.6%) respondents were disagree 8

nos (1.8%) respondents were strongly disagree that their organization recognize the employees

by providing monetary and non-monetary rewards to excellent performers.

(Fig- 04.76).

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04.10(g) The Company offers rewards based on contribution and results, rather than job

title and service

Tab.04.77

Option Frequency Percentage

Strongly Agree 176 39.1%

Agree 187 41.6%

Neither 11 2.4%

Disagree 43 9.6%

Strongly Disagree 33 7.3%

Total 450 100%

Reference to the Table No: 04.77 and Fig No-04.77 shows that 176 nos (39.1 % ) respondents

were strongly agree and 187 nos (41.6 %) respondents were agrees that the Company offers

rewards based on contribution and results, rather than job title and service.11 nos (2.4.%)

respondents were neutral ,43 nos (9.6%) respondents were disagree 33 nos (7.3%) respondents

were strongly disagree that the Company offers rewards based on contribution and results, rather

than job title and service.

(Fig- 04.77).

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04.11 Customer focus and Quality

04.11(a) Our employees are committed to improving quality of services

Tab.04.78

Option Frequency Percentage

Strongly Agree 198 44.0%

Agree 203 45.1%

Neither 25 5.6%

Disagree 16 3.6%

Strongly Disagree 8 1.8%

Total 450 100%

(Fig- 04.78).

Reference to the Table No: 04.78 and Fig No-04.78 shows that out of total population 198 nos

(44.0 % ) respondents were strongly agree and 203 nos (45.1 %) respondents were agrees that

the employees are committed to improving quality of services.25 nos (5.6.%) respondents were

neutral ,16 nos (3.6%) respondents were disagree 8 nos (1.8 %) respondents were strongly

disagree that the employees are committed to improving quality of services.

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04.11(b) Our organizational culture enhances employee commitment

Tab.04.79

Option Frequency Percentage

Strongly Agree 221 49.1%

Agree 178 39.6%

Neither 9 2.0%

Disagree 19 4.2%

Strongly Disagree 23 5.1%

Total 450 100%

Reference to the Table No: 04.79 and Fig No-04.79 shows that out of total population 221 nos

(49.1 % ) respondents were strongly agree and 178 nos (39.6%) respondents were agrees that

their organizational culture enhances employee commitment.9 nos (2.%) respondents were

neutral ,19 nos (4.2%) respondents were disagree 23 nos (5.1 %) respondents were strongly

disagree that their organizational culture enhances employee commitment

(Fig- 04.79).

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04.11(c) Our organization has clearly identified the customers who receive our Service.

Tab.04.80

Option Frequency Percentage

Strongly Agree 201 44.7%

Agree 189 42.0%

Neither 40 8.9%

Disagree 8 1.8%

Strongly Disagree 12 2.7%

Total 450 100%

(Fig- 04.80).

Reference to the Table No: 04.80 and Fig No-04.80 shows that out of total population 201 nos

(44.7% ) respondents were strongly agree and 189 nos (42%) respondents were agrees that their

organization has clearly identified the customers who receive our Service..40 nos (8.9%)

respondents were neutral ,8 nos (1.8%) respondents were disagree 12 nos (2.7 %) respondents

were strongly disagree that their organizational organization has clearly identified the customers

who receive our Service.

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04.11(d) Our Company's current activities reflect a strong focus on the customers.

Tab.04.81

Option Frequency Percentage

Strongly Agree 167 37.1%

Agree 168 37.3%

Neither 32 7.1%

Disagree 67 14.9%

Strongly Disagree 16 3.6%

Total 450 100%

Reference to the Table No: 04.81 and Fig No-04.81 shows that out of total population 167 nos

(37.1% ) respondents were strongly agree and 168 nos (37.3%) respondents were agrees that the

company's current activities reflect a strong focus on the customers.

32 nos (7.1%) respondents were neutral ,67 nos (14.9%) respondents were disagree 16 nos (3.6

%) respondents were strongly disagree that the company's current activities reflect a strong focus

on the customers.

(Fig- 04.81).

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217

04.11(e) In my job I have the freedom to understand and meet customer needs.

Tab.04.82

Option Frequency Percentage

Strongly Agree 178 39.6%

Agree 231 51.3%

Neither 20 4.4%

Disagree 11 2.4%

Strongly Disagree 10 2.2%

Total 450 100%

Reference to the Table No: 04.82 and Fig No-04.82 shows that out of total population 178 nos

(39.6% ) respondents were strongly agree and 231 nos (51.3%) respondents were agrees that in

their job ,they have the freedom to understand and meet customer needs.20 nos (4.4 %)

respondents were neutral ,11 nos (2.4%) respondents were disagree 10 nos (2.2 %) respondents

were strongly disagree that in their job ,they have the freedom to understand and meet customer

needs.

(Fig- 04 82).

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04.11(f) The internal practices of our Company adequately encourage me to deliver

customer focused services at the expected level

Tab.04.83

Option Frequency Percentage

Strongly Agree 190 42.2%

Agree 198 44.0%

Neither 24 5.3%

Disagree 20 4.4%

Strongly Disagree 18 4.0%

Total 450 100%

Reference to the Table No: 04.83 and Fig No-04.83 shows that out of total population 190 nos

(42.2% ) respondents were strongly agree and 198 nos (44.0%) respondents were agrees that the

internal practices of their Company adequately encourage them to deliver customer focused

services at the expected level.24 nos (5.3 %) respondents were neutral 20 nos (4.4%)

respondents were disagree 18 nos (4 %) respondents were strongly disagree that in their job ,

the internal practices of their Company adequately encourage them to deliver customer focused

services at the expected level.

(Fig- 04.83).

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219

04.11(h) Work environment in my area allow me to be highly productive.

Tab.04.84

Option Frequency Percentage

Strongly Agree 154 34.2%

Agree 137 30.4%

Neither 93 20.7%

Disagree 45 10.0%

Strongly Disagree 21 4.7%

Total 450 100%

Reference to the Table No: 04.84 and Fig No-04.84 shows that out of total population 154 nos

(34.2% ) respondents were strongly agree and 137 nos (30.4%) respondents were agrees that the

work environment in their area allow them to be highly productive.93 nos (20.7 %) respondents

were neutral 45 nos (10 %) respondents were disagree 21 nos (4.7 %) respondents were strongly

disagree that the work environment in their area allow them to be highly productive.

(Fig- 04 84).

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04.11(i) At the Company, my suggestions /Customer suggestions are given due

consideration

Tab.04.85

Option Frequency Percentage

Strongly Agree 113 25.1%

Agree 156 34.7%

Neither 118 26.2%

Disagree 52 11.6%

Strongly Disagree 11 2.4%

Total 450 100%

Reference to the Table No: 04.85 and Fig No-04.85 shows that out of total population 113 nos

(25.1% ) respondents were strongly agree and 156 nos (34.7%) respondents were agrees that at

their Company, suggestions /Customer suggestions are given due consideration.118 nos (26.2

%) respondents were neutral 52 nos (11.6%) respondents were disagree 11 nos (2.4 %)

respondents were strongly disagree that at their Company, suggestions /Customer suggestions are

given due consideration.

(Fig- 04 85).

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0.5 CORRELATION ANALYSES

05.1 H1: Manpower Planning and Recruitment Practices in the organization are

significantly related to Employee Satisfaction

Table 04 86

Correlations

Manpower Planning

and Recruitment

Practices Employee Satisfaction

Manpower Planning and

Recruitment Practices

Pearson Correlation 1 .969**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .969** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 86

The above table shows that Manpower Planning and Recruitment Practices have a positive

relationship with Employee Satisfaction. This is because the Pearson Correlation value, r = .969

is significant at .000. At the same time, the p value is less than 0.01 (correlation is significant at

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the 0.01 level). The scatter diagram also confirms the positive relationship because it shows a

positive trend by moving from lower left to upper right.

05.2 H2: Training and Succession Planning Practices in the organization are significantly

related to Employee Satisfaction

Table 04 87

Correlations

Training and

Succession Planning

Practices

Employee

Satisfaction

Training and Succession

Planning Practices

Pearson Correlation 1 .686**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .686** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 87

The above table shows that Training and Succession Planning Practices have a positive

relationship with Employee Satisfaction. This is because the Pearson Correlation value, r = .686

is significant at .000. At the same time, the p value is less than 0.01 (correlation is significant at

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the 0.01 level). The scatter diagram also confirms the positive relationship because it shows a

positive trend by moving from lower left to upper right.

05.3 H3: Performance Management Practices in the organization are significantly related

to Employee Satisfaction

Table 04 88

Correlations

Performance

Management Practices

Employee

Satisfaction

Performance Management

Practices

Pearson Correlation 1 .570**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .570** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 88

The above table shows that Performance Management Practices have a positive relationship with

Employee Satisfaction. This is because the Pearson Correlation value, r = .570 is significant at

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.000. At the same time, the p value is less than 0.01 (correlation is significant at the 0.01 level).

The scatter diagram also confirms the positive relationship because it shows a positive trend by

moving from lower left to upper right.

05.4 H4: Employee Motivation and Employee Engagement Practices in the organization are

significantly related to Employee Satisfaction

Table 04 89

Correlations

Employee

Motivation and

Employee

Engagement

Practices

Employee

Satisfaction

Employee Motivation and

Employee Engagement

Practices

Pearson Correlation 1 .512**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .512** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04.89

The above table shows that Employee Motivation and Employee Engagement Practices have a

positive relationship with Employee Satisfaction. This is because the Pearson Correlation value,

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r = .512 is significant at .000. At the same time, the p value is less than 0.01 (correlation is

significant at the 0.01 level). The scatter diagram also confirms the positive relationship because

it shows a positive trend by moving from lower left to upper right.

05.5 H5: Grievance Handling and Communication Practices in the organization are

significantly related to Employee Satisfaction

Table 04 90

Correlations

Grievance

Handling and

Communication

Practices

Employee

Satisfaction

Grievance Handling and

Communication Practices

Pearson Correlation 1 .710**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .710** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 90

The above table shows that Grievance Handling and Communication Practices have a positive

relationship with Employee Satisfaction. This is because the Pearson Correlation value, r = .710

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is significant at .000. At the same time, the p value is less than 0.01 (correlation is significant at

the 0.01 level). The scatter diagram also confirms the positive relationship because it shows a

positive trend by moving from lower left to upper right.

05.6 H6: Employee Reward Systems in the organization are significantly related to

Employee Satisfaction

Table 04 91

Correlations

Employee

Reward Systems

Employee

Satisfaction

Employee Reward Systems Pearson Correlation 1 .725**

Sig. (2-tailed) .000

N 450 450

Employee Satisfaction Pearson Correlation .725** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 91

The above table shows that Employee Reward Systems have a positive relationship with

Employee Satisfaction. This is because the Pearson Correlation value, r = .725 is significant at

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.000. At the same time, the p value is less than 0.01 (correlation is significant at the 0.01 level).

The scatter diagram also confirms the positive relationship because it shows a positive trend by

moving from lower left to upper right.

05.7 H7: The Human Resource Practices are significantly related to the overall

Performance of the Company

Table 04 92

Correlations

Human Resource

Practices

Performance of

the Company

Human Resource Practices Pearson Correlation 1 .990**

Sig. (2-tailed) .000

N 450 450

Performance of the Company Pearson Correlation .990** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04 92

The above table shows that Human Resource Practices have a positive relationship with the

Performance of the Company. This is because the Pearson Correlation value, r = .990 is

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significant at .000. At the same time, the p value is less than 0.01 (correlation is significant at the

0.01 level). The scatter diagram also confirms the positive relationship because it shows a

positive trend by moving from lower left to upper right.

05.8 H8: The Human Resource Practices in NBFC are significantly related to Work Life

Balance of the employees

Table 04 93

Correlations

Work Life

Balance

Human Resource

Practices

Work Life Balance Pearson Correlation 1 .982**

Sig. (2-tailed) .000

N 450 450

Human Resource Practices Pearson Correlation .982** 1

Sig. (2-tailed) .000

N 450 450

**. Correlation is significant at the 0.01 level (2-tailed).

Figure 04.93

The above table shows that Work Life Balance has a positive relationship with Human Resource

Practices. This is because the Pearson Correlation value, r = .982 is significant at .000. At the

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same time, the p value is less than 0.01 (correlation is significant at the 0.01 level). The scatter

diagram also confirms the positive relationship because it shows a positive trend by moving from

lower left to upper right.

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CHAPTER - V

SUMMARY AND CONCLUSION

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CHAPTER FIVE

SUMMARY AND CONCLUSION

5.1 Summary of Findings

The findings are based on the research conducted. These are not the actual practices as they are

subject to some limitation stated earlier. As per the response and analysis of the collected data,

the following are the general observations and findings:

Manpower Planning and Recruitment

1. The respondents believe that the System Approach is best to communicate with HR

regarding job vacancy followed by Position Requisition Form.

2. The best medium to communicate about job vacancy is Newspaper Ad.

3. Employees generally consider Employee Reference as the best source of vacancy

notifications. Websites and Newspaper is considered as the next effective medium for

vacancy communication.

4. It is observed that not everyone who got selected for a job have taken any form of formal

written test. But 99% of the employees have given interview in the recruitment process.

5. According to the study, job description has not been communicated to 74.4% employees

on or before joining.

6. It is a positive to see that respondent strongly agreed that the recruitment process is based

on merit.

7. There was a middle-on-the-road response about the adequacy of staff in the organization.

This is not a good sign for the HR department. Many respondents believe that there is not

enough staff in the organization.

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8. When asked about the satisfactory with time taken to fill a job, 66% agreed but still 31%

of respondent disagreed with this statement.

9. There was off-putting response when asked about the availability right kind of employees

at right time. Respondent mostly disagreed with this statement. This is a huge warning to

the HR team to enhance the recruitment process to acquire right talent at right time.

10. Respondent believed that the recruitment process was clearly defined to them during their

recruitment and was fair and un biased. They were well informed and certain with the

terms and procedures.

11. It is observed from the analysis that employees believe that they are given appropriate

consideration within the organization.

12. More respondent agree that the selection process is inclined with the organizational goal

and a fair practice of Strategic HRM is being practiced.

Training and Successful Planning

1. Organization follow formal structured induction programme for recruiting fresh as

well as internal employees promotion

2. Most of the respondents agree that the Organization is highly committed in enhancing

the skill sets of their current employees with appropriate training and development

program.

3. It is observed that the organizations are effective in providing Training Programme to

meet the job requirements of employees thereby increasing their efficiency.

4. Training need analysis is not effectively carried out during the Performance Appraisal

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5. As per the survey, Refresher Training Programme are very rarely conducted which

might affect employees efficiency to meet job requirements.

6. It is evident that online training programmes are not carried out for the employee’s

knowledge enhancement.

7. Employee development is considered very secondary for the organization. They

consider employees as a factor of cost rather than key to success.

8. Respondent believe that the training provided have enhanced their customer focus

and service skills.

9. They also believe that there is scope for growth within the organization

10. They agreed that the career moves are fairly based on merit and competency without

any discrimination.

Performance Management

1. There was a mediocre response when asked about regularity in conducting

performance appraisal and feedback session; which means there is not a proper

structure for Performance appraisal and feedback session.

2. It was observed that the organizations did not properly communicate their

expectations, goals and measurement techniques for performance appraisals before

the Fiscal year. This process might lead to low productivity and delay the attainment

of organizational goals.

3. Also the performance rating is not efficiently used for Promotion, Training or

Placements etc.

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4. Respondent think that the present appraisal system is not effectively measuring the

performance of the employees. There might be a need for new better appraisal criteria

for better results and satisfaction.

5. They also believe that their organization do not have well-structured model of

Performance Improvement Plan (PIP) and Training after the Appraisal Process.

6. There was a positive response when asked about the communication of their

obligations, expectations and responsibilities associated with the Vision and Mission.

Employees are mostly well informed regarding their duties and responsibilities.

Motivation and Employee Engagement

1. According to the survey, employees are encouraged to participate in giving ideas.

2. There is a good relationship between employee, co-workers and their superiors

3. They are encouraged in staff meeting to participate and express themselves honestly

and openly without any pressure. There is a provision for forum to effectively resolve

the conflicts, if any.

4. Their jobs are adequately recognized and this motivates them to perform well.

5. As per the compensation is concerned, they are not much satisfied with their salary

compared to others in the similar work in their industry.

6. They even feel that they are not adequately paid a compared to their colleagues in

other companies.

7. Not many employees believe that their organization is effective in organizing

employee engagement activity for boosting the employee morale and sense of

belongingness.

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8. They also do not feel completely secure with their current job. This might include

many reasons such as loops in evaluation and appraisal methodology.

Grievance Handling and Communication

1. Organization mostly effective in communicating the information regarding changes

and decisions affecting the employess

2. Most of the respondent believes that the grievance process in their company is fair

and equitable to resolve their grievances but still 35% of respondent believe that the

process is still not efficient.

3. There is freedom to express one’s thought in the organization without worrying about

the actions.

4. Management is also appropriate in communicating clear strategic direction to its

employees

About the Company, Vision, Management

1. Organization encourages the employees to bring out their best but their effort is not

good enough. Still 37% disagreed with this statement.

2. Organization establishes a proper accountability system.

3. Many employees believe that they work together and anticipate problems and develop

appropriate solutions to those problems.

4. Employees do not have a good opinion regarding the maintenance of Quality of

product and services in the work area.

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5. Most employees feel that their organization treats them with fairness and respect. Still

some disagree with this statement.

6. Many employees are satisfied with working atmosphere, hours and technology used.

7. Management is successful in communicating its vision to the employees to each and

every level of management.

8. Manager and Senior Leaders are supporting and indulgent to The Mission Statement

and the value of the company.

9. Individual goals are skillfully aligned towards organizational goals.

10. Most of the respondents believe that the managers are fair and interact with respect

with them. Since manager acts as a mediator between top and the bottom staffs,

therefore this statistics need to be more improved for smooth functioning of the

organization.

11. Teamwork seems to be an issue here, employee doesn’t solely agree that the

management team create a sense of teamwork and company spirit.

12. Organizational Culture is not fully successful in enhancing employee commitment

and team work.

Job Satisfaction and Employee Relation

1. Employee feel very much involved and have a sense of belongingness with the

organization.

2. They are willing to recommend their company to others as a great place of works;

which on a whole is a great response from an employee.

3. Employees are happy to participate in Company Sponsored Events

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4. But they don’t feel to be completely satisfied with organizational structure, policies

and procedures.

5. 46% employees agree that their organization has clear policy on employee transfer

and job rotation. But still 35% disagree with this statement.

6. There is better handling of issues by supervisors and other employees.

7. They believe that their immediate supervisor value their work and encourage their

ideas but still there is a margin of disagreement with this statement.

8. They don’t completely agree that their supervisors treat them fairly and respect their

thoughts.

9. These organizations are good in handling conflicts.

10. Many of them believe that they are able to utilize their complete skills and abilities

for the job.

11. Large number of respondents has high sense of accomplishment in their jobs.

12. Overall job satisfaction of employee was good enough with 86% agreed.

13. Overall morale and belongingness is also high.

14. But still many are not satisfied with their pay. They think that they don’t receive

appropriate compensation and benefits from their company.

15. Most of the employees are satisfied with organizational Leave Policy.

16. There is no appropriate provision for exit interview and constructive feedback.

17. Exit interview feedback is not correctly used for employee retention.

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Work Life Balance and Employee Reward System

1. There is no extreme response for work life balance. Some agree that there is support

for personal obligations from organization. Some feel there is no such support from

organization. Moreover many have opted for “Neither” as an option in this.

2. Many agree that there is support for outside works from organization. Some feel there

is no such support from organization. Moreover many have opted for “Neither” as an

option in this.

3. Anyway respondents feel that their work arrangements are good enough to balance

their personal life.

4. They are mostly interested to participate in recreational league outside of work with

their co-workers.

5. Organization is good in recognizing the effort of the employees and provides them

with monetary and non-monetary benefits.

6. Company is prominent in offering reward on the basis of contribution and results

rather than the job title and service.

Customer Focus and Quality

1. Respondents highly believe that the employees of their organization are committed to

improving quality of services.

2. Their organizational culture is upright in enhancing the commitment of the

employees.

3. Organization has clear understanding of their customers and their services.

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4. They observed that the current activities of the company are whole-heartedly focused

on the customers.

5. They agree that they have complete freedom to understand the need of the customers

and cater them accordingly.

6. Internal system helps the employees to deliver customer focused services.

7. They have a positive working environment facilitating better productivity and

motivation.

8. Suggestions of employees and customer taken into consideration for their

improvement.

5.2 Suggestions

Manpower Planning and Recruitment

During recruitment, it is noted that the vacancy is communicated mainly through

Newspaper ads and it is evident that the online approach is the least preferred medium

which is quite questionable. In the era of advancement and technology, online approach

should be boosted to ease the process. Since many people are now in access to internet, it

should be encouraged to grasp more and more people in the network. Moreover, online

approach will ease the procedure, save time and money. As an HR, it is their duty to

make themselves and their workforce well-educated in operating the internet and other

necessary software.

Survey results depicts that the job description in not effectively communicated to the

employees. It is very important to communicate the complete job description to the

candidate before the job offering or joining. If not, the candidate may feel tricked and

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dissatisfied with their job and will be demotivated. This will in turn affect the overall

productivity of the firm. Therefore proper communication of job roles and duties will

avoid confusion and the chain of demoralization.

It is observed that planning of manpower and selecting right kind of person for right job

at right time has not be conducted in successful manner. More effort should be made in

augmenting this process with better filtering process (such as by necessitating the written

test) for acquiring right talent at right time.

Training and Successful Planning

In the survey it is clear that, even though the training programs were effective in

enhancing the skills, still it was not framed for enhancing the knowledge of the

employees. Training programs are mainly based to increase the productivity of the

employees. So organization needs to focus on this issue to develop the skills and

knowledge of the employees for their overall personality development which in turn will

benefit the organization in long-term.

Moreover, there is no pattern of regular refresher training program in many organizations

which should not be the case in future as training and development program should be

conducted regularly that too with interesting techniques for regular progress of talent and

skills.

Online Training Program is still unattainable by most of the organizations. Organizations

are still rigid towards accepting this change. This type of training will benefit the

employees in long-term retention of information in addition to saving time, money and

labor.

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Performance Management

It was observed that the overall Performance Management Process was highly criticized

by the respondents.

The present performance appraisal technique is not adequate in measuring the

performance. There is no proper structure for performance improvement and

Performance rating is not effectively used in promotion, training etc. are some of the

assertion by the employees.

The suggestion would be to re-frame the complete Performance Appraisal Process by

finding the flaws and loop-holes of the previous Process.

Motivation and Employee Engagement

Even though the employees are encouraged in expressing their thoughts, most

organization is not effective in conducting regular employee engagement activity. This

situation needs to be changed. More and more activity will boost the employee morale

and help in better employee understanding and engagement.

Apparently compensation seems to be a severe issue within the employees. Most of them

are not satisfied with what they are paid as compared to others in the same job and

industry. This might influence the employee motivation and result in low retention of

employees. Organization must re-evaluate the compensation system to re-assure the

current pay is adequate or not.

Organization should also build a positive relationship with their employees so that they

won’t feel insecure with the current job. This might help in retaining the employees.

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Grievances Handling and Communication

It was noted that few employees were not happy with the grievance handling system.

They felt that the system was not fair and equitable. This again is a concern to the

organization. They should opt for better grievance handling system with pre-determined

steps for quick resolve of issues and un-biased treatment.

About the Company, Vision, Management

Not many employees believe that their company encourages them to bring out the best.

Company should always try to encourage the employees by using different techniques

and provide equal opportunity to every employee. This will help them to give their best

effort which will positively influence the organization.

According to the survey, the Quality of Product and Services in work area are not

properly maintained. It is the duty of HR to hire or assign a Quality Supervisor in every

required segment for maintenance of Quality at work area.

Team-working seems to be an extensive issue in these organizations. Both the

management as well as organizational culture is not successful in augmenting employee

commitment and team work. These are related to employee engagement activity stated

earlier. All these displeasure within the organization are related with one another in some

way. For better co-working and team building, managers need to take steps enhance the

skills such as participating, listening, adjusting, sharing, respecting within the employees

with proper persuasion and training.

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Job Satisfaction and Employee Retention

Employee doesn’t seem to be whole-heartedly happy with organization policy, procedure

and structure whether it is regarding employee engagement or it is employee transfer.

Organization must take this review seriously and work on framing more realistic policies

and structure to facilitate employee job satisfaction.

And these organizations must work on not just framing new policies but also should work

on successful communication of these policies to the employees for better results.

It’s important to note that some employees feel that their work is not much valued by

their immediate supervisors. So to solve this issue, management must focus on giving

each and every employee an equal opportunity to perform and prove themselves.

As stated earlier, organization must reconsider their compensation system for better job

satisfaction of the employees.

It is also noticed that exit interview and feedback are not taken seriously by the

organization. Exit interview and feedback are the technique through which an

organization can retain their employees as well as customer. It can be used as a

controlling tool for successful completion of organizational goals.

Work Life Balance and Employee Reward System

These organizations seems to be well planned and built an ideal work life and employee

reward system as most of the employees are happy with the current system. Although

they feel that they don’t get any extra support from the organization for their personal

obligations. Apart from that there are no issues from the side of employees regarding

work life balance.

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Customer Focus and Quality

Overall focus on customers, quality and employee involvement seems to be satisfactory

according to the employees. These organizations needs to work on improvement of each

and every aspect stated above to complete customer focus and quality improvement.

These factors are related with other functional dimensions and will be automatically

improve if all other factors are taken into consideration.

5.3 Conclusion

In conclusion, this study has added to literature by revealing through the results that performance

appraisal, motivation, employee engagement, recruitment and selection, training and

development are positively related to job satisfaction in the organization using Non-Banking

Finance Companies (NBFCs). This shows the important roles human resource practices play in

the success of the organization. As the success of any organization largely depends on the quality

of its human resources and the degree to which they are satisfied, there is the need for the

effective management of human resources regardless of the size and or the nature of the

organization.

5.4 Limitations of the Study

As the variable involved in human being, the conclusions are subjective and cannot be taken as

universally applicable. Moreover, the findings depend on people who have answered the

questions and are subject to their personal prejudices and whimsical fancies. The delimitations of

the questionnaire are equally applicable to the present study as well. The sample size is roughly

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10% of the defined population. The time and cost constraints have prevented the researcher in

taking sample on a large scale.

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APPENDIX

A Study on;

“HR PRACTICES OF NON BANKING FINANCIAL COMPANIES AND THEIR

EFFECT ON EMPLOYEE JOB SATISFACTION WITH REFERENCE TO GOLD

LOAN NBFC’s”

QUESTIONNAIRE

(Please take time to document your HR practices in this questionnaire. Soft copy has been mailed

to facilitate furnishing the information below each question. The survey consists of 110 questions

and should take approximately 30-40 minutes to complete.The information provided by you will

remain confidential and shall be used for Study purpose only.

Part A- Background Information (* denotes optional)

1) Name * :..................................................................................

2) Sex : Male Female

3) Age :..................................................................................

4) Educational Qualification :Non Graduate Graduate PG

Professionals Technical Qualifications

5) Marital Status :Single Married Separated

6) Name of your Organization :……………………………………………………..

7) Category of the Branch/Dept. :Metro Urban Semi urban

Rural

8) Employee No * : .................................................................................

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9) Since No of Years in the same Organisation : .....................................................................

10) Have you worked in any other Organisation : Yes No

Part B - Manpower Planning and Recruitment

Part-B(I)

1) No of Staff posted in your branch in the last three Years?(Write Specifically)

Branch Head Asst Branch Head Staff Peons/Sweepers

2) How will you communicate to the HR when a position becomes vacant or requirement of

a new position?

Through Position requisition Form Through Online System Driven

3) How did you come to know that the position was vacant at the time of your joining?

News Paper Ad. Social Media Employment News

Employee Reference Web Recruitment sites Direct Application

Consultancy Others

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4) According to you, which is the effective source of vacancy notification in your

organization?

News Paper Ad. Social Media Employment News

Employee Reference Web Recruitment sites Direct Application

Consultancy Others

5) Whether you have undergone any written test and formal Interview at the time of your

recruitment?

a) Written Test- Yes No b) Interview- Yes No

6) Job Descriptions are informed you at the time of Selection Process/at the time of joining.

Yes No

Part-B (II)

7) Your Company Recruitment process is based on competencies and merit.

Strongly Agree Agree Neither Disagree Strongly Disagree

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8) You have the right (adequate ) number of staff ( headcount) in your Branch/Department

to run the day to day operations satisfactorily

Strongly Agree Agree Neither Disagree Strongly Disagree

9) You are satisfied with the length of time ( lead time ) it takes to fill up the open positions

in your Department

Strongly Agree Agree Neither Disagree Strongly Disagree

10) Your Department /Branch has the right people in the right place in terms of skill and

business knowledge.

Strongly Agree Agree Neither Disagree Strongly Disagree

11) Human Resources Department is successful in recruiting on time both long-term and

short-term positions in your organisation

Strongly Agree Agree Neither Disagree Strongly Disagree

12) The Recruitment procedures are clearly defined, Fair and unbiased

Strongly Agree Agree Neither Disagree Strongly Disagree

13) Candidates from within the Organisation are given appropriate consideration

Strongly Agree Agree Neither Disagree Strongly Disagree

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14) Selection criteria are specifically linked to core objectives of the Organization and job

requirements.

Strongly Agree Agree Neither Disagree Strongly Disagree

15) Whether a Recruitment Policy with standard parameters, terms and conditions has been

put in place in your Company?

Yes No

Part C –Training and Succession Planning

1) Do your Organization have a formal structured induction programme for fresh recruits

joining the organization as well as for internal promotes?

Yes No

2) Your organization is committed to improving the skill level of current employees to meet

the job requirements

Strongly Agree Agree Neither Disagree Strongly Disagree

3) Your Training Programmes are structured to meet the job requirements of employees.

Strongly Agree Agree Neither Disagree Strongly Disagree

4) Training need analysis happens at the time of your Performance Appraisal

Strongly Agree Agree Neither Disagree Strongly Disagree

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5) Human Resources Department help employees build competencies needed to

successfully achieve strategic objectives

Strongly Agree Agree Neither Disagree Strongly Disagree

6) How often you are getting refresher training programmes to meet the challenges of job

requirements

Periodic intervals once in a Year Never

7) Your organization is using online training programmes for the employee’s knowledge

enhancement.

Strongly Agree Agree Neither Disagree Strongly Disagree

8) In my organization, Employee Development is seen as a key to success rather than a cost

Strongly Agree Agree Neither Disagree Strongly Disagree

9) Your Supervisor provides you adequate and timely feedback on how you can achieve

career advancement and equal opportunity within the Company

Strongly Agree Agree Neither Disagree Strongly Disagree

10) The training I receive reinforces and enhances my customer focus and service

excellence skills.

Strongly Agree Agree Neither Disagree Strongly Disagree

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11) Scope for career paths or chances of promotions are existing for someone like you in this

company

Strongly Agree Agree Neither Disagree Strongly Disagree

12) In your organization, career moves are based on competency and merit and handled

fairly, equitable and without any discrimination.

Strongly Agree Agree Neither Disagree Strongly Disagree

Part D –Performance Management

1) Your organization conducts regular and timely performance appraisals and feedback

sessions.

Strongly Agree Agree Neither Disagree Strongly Disagree

2) Your organization Sets and clearly communicates expectations, performance goals, and

measurements at the beginning of the Fiscal year?

Strongly Agree Agree Neither Disagree Strongly Disagree

3) Whether the Performance rating is used for Promotions, training, placement etc.

Strongly Agree Agree Neither Disagree Strongly Disagree

4) Does the present Appraisal system adequately serve the purpose of Measuring the

Performance and Initiating developmental measures?

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Strongly Agree Agree Neither Disagree Strongly Disagree

5) Your organization has clear guidelines on Performance Improvement Plan (PIP)and

Training after the appraisal Process has been completed.

Strongly Agree Agree Neither Disagree Strongly Disagree

6) Your organization defines roles, obligations, expectations and responsibilities of

employees aligned with Vision and Mission.

Strongly Agree Agree Neither Disagree Strongly Disagree

Part E –Motivation and employees engagement

1) In your Branch/Office, you participates in deciding how the work gets done.

Strongly Agree Agree Neither Disagree Strongly Disagree

2) Your co-workers and you work well with superiors together to accomplish our

organization's goals.

Strongly Agree Agree Neither Disagree Strongly Disagree

3) Your department staff meetings generally encourage open and honest participation and

also used as a forum to resolve conflicts honestly, effectively and quickly, whenever

necessitated.

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Strongly Agree Agree Neither Disagree Strongly Disagree

4) You are adequately recognized by your superiors for your good work.

Strongly Agree Agree Neither Disagree Strongly Disagree

5) The amount of pay you receive for your job is at par compared to others doing similar

work in our industry.

Strongly Agree Agree Neither Disagree Strongly Disagree

6) You feel ,you are adequately paid compared to your colleagues in other companies.

Strongly Agree Agree Neither Disagree Strongly Disagree

7) Your team fosters open communication and recognizes individual contributions

Strongly Agree Agree Neither Disagree Strongly Disagree

8) Your organization is organizing employee engagement activates for boosting the

employee morale and sense of belongingness.

Strongly Agree Agree Neither Disagree Strongly Disagree

9) You feel and experience a better job security in your company ?

Strongly Agree Agree Neither Disagree Strongly Disagree

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Part F-Grievance handling and Communication

1) The Companies does a good job by communicating about changes or decisions that affect

employees.

Strongly Agree Agree Neither Disagree Strongly Disagree

2) The grievance process used at the Company is fair and equitable to reduce and resolve

employee grievances.

Strongly Agree Agree Neither Disagree Strongly Disagree

3) You feel free to express your opinions without worrying about negative actions/responses

Strongly Agree Agree Neither Disagree Strongly Disagree

4) Management communicates a consistent and clear strategic direction

Strongly Agree Agree Neither Disagree Strongly Disagree

5) You resolve issues quickly in your department without resorting to blame, anger or

retribution.

Strongly Agree Agree Neither Disagree Strongly Disagree

6) How would you rate the organization's “communications tools” in providing you with an

effective means of communication?

Poor Unsatisfactory Average Good Excellent

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7) How would you rate the output of the operational, cross functional, problems solving,

improvement teams, and staff meetings for meeting your needs for communication?

Poor Unsatisfactory Average Good Excellent

Part G-About the Company, Vision and Management

1) My organization encourages employees to work to the best of their abilities

Strongly Agree Agree Neither Disagree Strongly Disagree

2) I am held accountable for achieving specific results.

Strongly Agree Agree Neither Disagree Strongly Disagree

3) We work to anticipate problems and develop appropriate solutions.

Strongly Agree Agree Neither Disagree Strongly Disagree

4) How would you rate your authority to maintain quality of products and services in my

work area?

Poor Unsatisfactory Average Good Excellent

5) My organization treats employees with fairness and respect.

Strongly Agree Agree Neither Disagree Strongly Disagree

6) How would you rate the company on Work atmosphere, Working hours, use of

Information Technology etc.

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Poor Unsatisfactory Average Good Excellent

7) Our Management is able to communicate a shared vision of the company to employees at

all levels.

Strongly Agree Agree Neither Disagree Strongly Disagree

8) The Mission Statement and values of our Company is supported by managers and senior

leadership

Strongly Agree Agree Neither Disagree Strongly Disagree

9) Goals and objectives are integrated and aligned with Company Mission Statement and

values

Strongly Agree Agree Neither Disagree Strongly Disagree

10) Managers communicate frequently and honestly about issues affecting employees.

Strongly Agree Agree Neither Disagree Strongly Disagree

11) My Manager shows fairness and respect in their interactions with employees.

Strongly Agree Agree Neither Disagree Strongly Disagree

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12) My Management team works together to create a sense of teamwork and company spirit.

Strongly Agree Agree Neither Disagree Strongly Disagree

13) My organizational culture enhances employee commitment and Team work

Strongly Agree Agree Neither Disagree Strongly Disagree

14) In my department, at times I am often confused about who is responsible for what.

Strongly Agree Agree Neither Disagree Strongly Disagree

15) Opportunities for Promotions are available in our Company.

Strongly Agree Agree Neither Disagree Strongly Disagree

Part H-Job Satisfaction and Employee Relations

1) I feel that there is a spirit of “we’re all in this together” in the organization.

Strongly Agree Agree Neither Disagree Strongly Disagree

2) I would recommend my Company as a great place to work.

Strongly Agree Agree Neither Disagree Strongly Disagree

3) I enjoy participating in Company’ sponsored events and social activities.

Strongly Agree Agree Neither Disagree Strongly Disagree

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4) I am satisfied with the organizational structure, Polices and procedures.

Strongly Agree Agree Neither Disagree Strongly Disagree

5) Our organization has clear policy on employee transfer and job rotation.

Strongly Agree Agree Neither Disagree Strongly Disagree

6) Employees and immediate supervisors resolve issues quickly without resorting to anger,

intimidation, or retribution.

Strongly Agree Agree Neither Disagree Strongly Disagree

7) My immediate supervisor values my contributions and encourages ideas about how to

improve work in my department.

Strongly Agree Agree Neither Disagree Strongly Disagree

8) My Superior show fairness and respect in their interactions with employees

Strongly Agree Agree Neither Disagree Strongly Disagree

9) Conflicts are resolved in a positive and constructive manner at the work place itself.

Strongly Agree Agree Neither Disagree Strongly Disagree

10) How would you rate your satisfaction with the opportunity to use your skills and abilities

in your job?

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Poor Unsatisfactory Average Good Excellent

11) How would you rate your sense of accomplishment in your job?

Poor Unsatisfactory Average Good Excellent

12) How would you rate your overall job satisfaction in your present position?

Poor Unsatisfactory Average Good Excellent

13) How would you rate the morale in your team?

Poor Unsatisfactory Average Good Excellent

14) I feel a strong sense of belongingness to Company

Strongly Agree Agree Neither Disagree Strongly Disagree

15) I would recommend others to join and work in our Organization

Strongly Agree Agree Neither Disagree Strongly Disagree

16) I am satisfied with my compensation and benefits, which I am receiving at present.

Strongly Agree Agree Neither Disagree Strongly Disagree

17) I am satisfied with my compensation and benefits when compared with Industry

standards.

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Strongly Agree Agree Neither Disagree Strongly Disagree

18) I am satisfied with my organizations leave Policy.

Strongly Agree Agree Neither Disagree Strongly Disagree

19) My organization conducts structured exit Interview and collect constructive feedback.

Strongly Agree Agree Neither Disagree Strongly Disagree

20) Exit Interview feedbacks are used for making retention strategies.

Strongly Agree Agree Neither Disagree Strongly Disagree

Part I- Work life balance and employee Reward system

05 I receive support in meeting family and personal obligations.

Strongly Agree Agree Neither Disagree Strongly Disagree

06 I believe that Company is supportive of my life outside of work, wherever necessary.

Strongly Agree Agree Neither Disagree Strongly Disagree

07 My work arrangements allow me to balance my personal life with my work.

Strongly Agree Agree Neither Disagree Strongly Disagree

08 I am able to balance the demands of my time between my work life and my personal life.

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Strongly Agree Agree Neither Disagree Strongly Disagree

09 I would like to participate in a recreational league outside of work with my co-workers.

Strongly Agree Agree Neither Disagree Strongly Disagree

10 Organization recognize the employees by providing monetary and non-monetary

rewards to excellent performers.

Strongly Agree Agree Neither Disagree Strongly Disagree

11 The Company offers rewards based on contribution and results, rather than job title and

service

Strongly Agree Agree Neither Disagree Strongly Disagree

Part J- Customer focus and Quality

12 Our employees are committed to improving quality of services

Strongly Agree Agree Neither Disagree Strongly Disagree

13 Our organizational culture enhances employee commitment.

Strongly Agree Agree Neither Disagree Strongly Disagree

14 Our organization has clearly identified the customers who receive our Service.

Strongly Agree Agree Neither Disagree Strongly Disagree

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15 Our Company's current activities reflect a strong focus on the customers.

Strongly Agree Agree Neither Disagree Strongly Disagree

16 In my job I have the freedom to understand and meet customer needs.

Strongly Agree Agree Neither Disagree Strongly Disagree

17 In my work group, we ask our internal customers what they require from us.

Strongly Agree Agree Neither Disagree Strongly Disagree

18 The internal practices of our Company adequately encourages me to deliver customer

focused services at the expected level.

Strongly Agree Agree Neither Disagree Strongly Disagree

19 Work environment in my area allow me to be highly productive.

Strongly Agree Agree Neither Disagree Strongly Disagree

20 At the Company, my suggestions /Customer suggestions are given due consideration.

Strongly Agree Agree Neither Disagree Strongly Disagree