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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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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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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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Department Personalities on the Selection of Grievance Handling Styles” International
Journal of Humanities and Social Science, Vol.1 No.7 Issue-June 2011.
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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