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HDFC BANK
Address: 2-2-62/2/A/1, NH163, Mallikarjuna Nagar,
Amberpet, Hyderabad, Telangana 500013
Phone:040 6999 4603
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TABLE OF CONTENTS
CHAPTER
1
2
TITLE
INTRODUCTION
INDUSTRY PROFILE & COMPANY
3
4
PROFILE
REVIEW OF LITERATURE
RESEARCH METHODOLOGY
NEED OF THE STUDY
LIMITATIONS OF THE STUDY
RESEARCH DESIGN
DATA ANALYSIS &
INTERPRETATIOIN
FINDINGS, SUGGESTIONS &
CONCLUSION
BIBLIOGRAPHY & ANNUXURE
CHAPTER-I
INTRODUCTION
INTRODUCTION:
Organization development is an effort (1) Planned (2) Organization wide and (3) managed from
the top, to (4) Increase Organization effectiveness and health through (5) Planned Interventions in
the organizations process using behavioral-science knowledge.
-Richard Beckhard
Organizational Development requires a plan approach to change based on meeting the needs of
both the people in the organization
-Kilion &Harrrison(1990)
Due to globalization and redefining in the field of information Technology, the advancement and
applicability of Organizational Development has changed. Luckily, most of the organizations
are adopting various kinds of organizational changes which are inevitable to survive in todays
competitive environment. In this regard, Employee Involvement Interventions is adopted to
improve the responsiveness and progress of the members of the organization which directly
improves organizations effectiveness and productivity.
OD is an effort planned organization wide, managed from the top, through planned intervention,
using processes of behavioral science
If executives recognize that there are inadequacies within organization which can be corrected by
OD activities, it is necessary to find out the professional and competent people within the
organization to plan and execute OD activities. If competent people are not available within the
organization the services activities are to be taken. The consultants adopt various methods
including interviews, questionnaires, direct observation, analysis of documents and reports for
diagnosing the problem.
Survey method is used to collect the data and information for determining organizational climate
and identifying the behavioral problems.
Data collected are analyzed and reviewed by various work groups formed from this purpose in
order to mediate in the areas of disagreement or confrontation of ideas or opinions and to
establish priorities.
The interventions are the planned activities that are introduced into the system to accomplish
desired changes and improvements. At this stage the suitable interventions are to be selected and
designed.
QUALITY CIRCLES
DEFINITION:
Quality Circle is a small group of 6 to 8 employees doing similar work who voluntarily meet
together on a regular basis to identify improvements in their respective work areas using proven
techniques for analyzing and solving work related problems coming in the way of achieving and
sustaining excellence leading to mutual up liftment of employees as well as the organization.
It is "a way of capturing the creative and innovative power that lies within the work
Family.
Organization.
Departments.
Informal Groups
Five salesmen from marketing department meet once a month for lunch to discuss mutual
concerns and to seek relief from tedious aspects of their job.
Four computer programmers form a jogging club that meets three days per week at lunch
time to run two miles.
All employees of a section meet and discuss how to improve and beautify office layouts.
Seven workers of a production shop floor meet once a week to solve their technical
problems.
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Small Groups
Action Circles
Excellence Circles
Productivity Circles
Each meeting lasts for approximately one hour, though variations are possible.
Apart from the frequency of the meetings, what is important is the regularity of the
meetings.
Analyzing problem(s).
Lack of faith in and support to Quality Circle activities among management personnel
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8) Graphs
These techniques through simple, but are very powerful ones and they help they quality circles
investigation the case for their work related problems and find solutions in scientific way.
1. BRAIN STROMING:
Stimulating generation of ideas in a group is done through brain storming, which more effective
then is trying to generate ideas alone brain storming helps to realize the creative power of the
group. It is also helps effective group participation. Its effectiveness would increase with the skill
of application by the leader.
Brain storming generally usually three stages by quality circles.
1. While listing out the problem,
2. While listing out the probable causes influencing the effect,
3. While listing out the suggestions /recommendations,
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2. DATA COLLECTION:
Data is nothing but collection of act in terms of figures, which gives a clear picture of any work
situation allows for comparison. data collection forms the first step in statistical analysis of a
problem. it would also form a sound basis for decision making and corrective action. The
analysis and solution would depends on the correctness and accuracy of data must be related to
the problem under review
Types of data
Generally data can be of two types one variable i.e. which is measurable, eg.length, weight, time,
etc, and the other attribute .i.e. which is countable data, is a example: smooth running of a
machine small etc,(attribute).
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Source of data:
There are two sources f data, past data(previous record, previous feedback) and live data (current
observations).
Past data:
In many cases the required data will be ready available with some agency or the recorded through
a feedback system. The data so available is termed as Past data. The past data helps to have a
preliminary study and to understand the causes of the problem.
Live Data:
Where such a recorded data is not available we have to systematically collect data through
observation over a period of time and this is termed as Live data.
Analysis of data
After the data is collected, it is analyzed and information is extracted by applying statistical
method. Decision making or further course of action should be based on analyzed data.
3. STRATIFICATION:
The technique of data segregation based on segregated element is called stratification data
collected should be properly classified for giving meaningful and correct inference.
The stratification of data is nothing but segregation of are groping the data. machine wise,
operator wise, shift wise etc,. for identifying the influencing the factors
Material Base:
data is stratified n the basis of the supplier of the materials, delivery lot of the materials,
preliminary process etc, by this the effects of the materials have on the quality of the final
product.
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Quality Base:
Data is stratified by kinds f products specification etc. if phenomenon inherent to a special group
of product can thus be traced.
Work Base:
Stratification on the basis of worker is often very effective.
Time base:
Data is stratified by the seasons, day-and-night, atmospheric conditions such as temperature,
humidity and physiological conditions of the workers differ from time to time. the influence of
these elements on quality is sometimes founded by time based stratification .
Surrounding conditions:
The quality of product may be influenced by such surrounding conditions as weather, productions
schedules, tightness r slowness of the market etc.
Processing:
Element such as production equipment, measuring instrument, manufacturing methods etc.
There are more stratification bases other than the listed above.
4. PARETO ANALYSIS:
Pareto was an Italian economist who discovered a universal relationship between value and
quantity and he used this technique for assessing uneven distribution of wealth. Pareto analysis
helps in the identification of the vital few trivial many at a glance hen projected, using the
column graph named after Pareto diagrams are frequently used to select the few important
problems out of many.
What is Pareto Diagram:
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Pareto diagram is a column graph, drawn after data collection for the purpose of:a. Differentiating the major factors (vital) that contributes most to the
situation from other minor ones (trivial).
unsatisfactory
PARETO CHART
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Simple example of a Pareto chart using hypothetical data showing the relative frequency of
reasons for arriving late at work.
A Pareto chart is a special type of bar chart where the values being plotted are arranged in
descending order. The graph is accompanied by a line graph which shows the cumulative totals
of each category, left to right. The chart is named after Vilfredo Pareto, and its use in quality
assurance was popularized by Joseph M. Juran and Kaoru Ishikawa.
Typically on the left vertical axis is frequency of occurrence, but it can alternatively
represent cost or other important unit of measure. The right vertical axis is the cumulative
percentage of the total number of occurrences, total cost, or total of the particular unit of
measure. The purpose is to highlight the most important among a (typically large) set of factors.
In quality control, the Pareto chart often represents the most common sources of defects, the
highest occurring type of defect, or the most frequent reasons for customer complaints, etc.
The Pareto chart was developed to illustrate the 80-20 Rule that 80 percent of the problems stem
from 20 percent of the various causes.
The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) are diagrams, that
shows the causes of a certain event. A common use of the Ishikawa diagram is in product design,
to identify potential factors causing an overall effect.
Overview
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Ishikawa diagrams were proposed by Kaoru Ishikawa in the 1960s, who pioneered quality
management processes in the Kawasaki shipyards, and in the process became one of the founding
fathers of modern management.
It was first used in the 1960s, and is considered one of the seven basic tools of quality
management, along with the histogram, Pareto chart, check sheet, control chart, flowchart, and
scatter diagram. See Quality Management Glossary. It is known as a fishbone diagram because of
its shape, similar to the side view of a fish skeleton.
Mazda Motors famously used an Ishikawa diagram in the development of the Miata sports car,
where the required result was "Jinba Ittai" or "Horse and Rider as One". The main causes
included such aspects as "touch" and "braking" with the lesser causes including highly granular
factors such as "50/50 weight distribution" and "able to rest elbow on top of driver's door". Every
factor identified in the diagram was included in the final design.
Causes
Causes in the diagram are often based on a certain set of causes, such as the 6 M's, 8 P's or 4 S's,
described below. Cause-and-effect diagrams can reveal key relationships among various
variables, and the possible causes provide additional insight into process behavior.
Causes in a typical diagram are normally grouped into categories, the main ones of which are:
The 6 m's
Machine, Method, Materials, Maintenance, Man and Mother Nature (Environment)
(recommended for the manufacturing industry).
Note: a more modern selection of categories used in manufacturing includes Equipment, Process,
People, Materials, Environment, and Management.
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The 8 p's
Price, Promotion, People, Processes, Place/Plant, Policies, Procedures, and Product (or Service)
(recommended for the administration and service industries).
THE 4 S'S
Surroundings, Suppliers, Systems, Skills (recommended for the service industry).
Causes should be derived from brainstorming sessions. Then causes should be sorted through
affinity-grouping to collect similar ideas together. These groups should then be labeled as
categories of the fishbone. They will typically be one of the traditional categories mentioned
above but may be something unique to your application of this tool. Causes should be specific,
measurable, and controllable. Appearance
A generic Ishikawa diagram showing general (red) and more refined (blue) causes for an event.
Most Ishikawa diagrams have a box at the right hand side, where the effect to be examined is
written. The main body of the diagram is a horizontal lines from which stem the general causes,
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represented as "bones". These are drawn towards the left-hand side of the paper and are each
labeled with the causes to be investigated often brainstormed beforehand and based on the major
causes listed above.
Off each of the large bones there may be smaller bones highlighting more specific aspects of a
certain cause, and sometimes there may be a third level of bones or more. These can be found
using the '5 Whys' technique. When the most probable causes have been identified, they are
written in the box along with the original effect. The more populated bones generally outline
more influential factors, with the opposite applying to bones with fewer "branches". Further
analysis of the diagram can be achieved with a Pareto chart.
6).HISTOGRAM:
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Histograms are used to plot density. The total area of a histogram always equals 1. If the length
of the intervals on the x-axis is all 1, then a histogram is identical to a relative frequency plot.
The word histogram is derived from Greek: histos 'anything set upright' (as the masts of a ship,
the bar of a loom, or the vertical bars of a histogram); gramma 'drawing, record, and writing. A
generalization of the histogram is kernel smoothing techniques. This will construct a very smooth
probability density function from the supplied data.
Examples
As an example we consider data collected by the U.S. Census Bureau on time to travel to work
(2000 census, [1], Table 2). The census found that there were 124 million people who work
outside of their homes. This rounding is a common phenomenon when collecting data from
people.
Check sheet
The check sheet is a simple document that is used for collecting data in real-time and at the
location where the data is generated. The document is typically a blank form that is designed for
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the quick, easy, and efficient recording of the desired information, which can be either
quantitative or qualitative. When the information is quantitative, the check sheet is sometimes
called a tally sheet.
A defining characteristic of a check sheet is that data is recorded by making marks ("checks") on
it. A typical check sheet is divided into regions, and marks made in different regions have
different significance. Data is read by observing the location and number of marks on the sheet. 5
Basic types of Check Sheets:
Classification:
A trait such as a defect or failure mode must be classified into a category.
Location:
The physical location of a trait is indicated on a picture of a part or item being evaluated.
Frequency:
The presence or absence of a trait or combination of traits is indicated. Also number of
occurrences of a trait on a part can be indicated.
Measurement Scale:
A measurement scale is divided into intervals, and measurements are indicated by checking an
appropriate interval.
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Check List: The items to be performed for a task are listed so that, as each is accomplished, it
can be indicated as having been completed.
7).CONTROL CHART
The control chart, also known as the Stewart chart or process-behavior chart, in statistical
process control is a tool used to determine whether a manufacturing or business process is in a
state of statistical control or not.
Overview
If the chart indicates that the process is currently under control then it can be used with
confidence to predict the future performance of the process. If the chart indicates that the process
being monitored is not in control, the pattern it reveals can help determine the source of variation
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to be eliminated to bring the process back into control. A control chart is a specific kind of run
chart that allows significant change to be differentiated from the natural variability of the process.
This is a key to effective process control and improvement. On a practical level the control chart
can be seen as part of an objective disciplined approach that facilitates the decision as to whether
process performance warrants attention or not.
Types of Control charts: A Control chart form Varies According to Kind of data it contains
.For variable data the following charts are used
1. P-chart=Fraction defective,
2. np-chart=No. of defectives,
3. c-chart=No. of defects.
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CHAPTER 2
INDUSTRY PROFILE
&
COMPANY PROFILE
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INDUSTRY PROFILE:
Banking in India in the modern sense originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindustan, which was established in 1770 and
liquidated in 1829-32; and the General Bank of India, established in 1786 but failed in
1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks funded by a presidency government, the other
two were the Bank of Bombay and the Bank of Madras. The three banks were merged in
1921 to form the Imperial Bank of India, which upon India's independence, became
the State Bank of India in 1955. For many years the presidency banks had acted as quasicentral banks, as did their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934
In 1960, the State Banks of India was given control of eight state-associated banks under
the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate
banks. In 1969 the Indian government nationalised 14 major private banks. In 1980, 6
more private banks were nationalised. These nationalised banks are the majority of
lenders in the Indian economy. They dominate the banking sector because of their large
size and widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. The scheduled banks are those which are included under the 2nd Schedule of the
Reserve Bank of India Act, 1934. The scheduled banks are further classified into:
nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs);
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foreign banks; and other Indian private sector banks.[6] The term commercial banks refers
to both scheduled and non-scheduled commercial banks which are regulated under
the Banking Regulation Act, 1949.
Generally banking in India is fairly mature in terms of supply, product range and reacheven though reach in rural India and to the poor still remains a challenge. The government
has developed initiatives to address this through the State Bank of India expanding its
branch network and through the National Bank for Agriculture and Rural
Development with facilities likemicrofinance.
Adoption of banking technology
The IT revolution has had a great impact on the Indian banking system. The use of
computers has led to the introduction of online banking in India. The use of computers in
the banking sector in India has increased many fold after the economic liberalisation of
1991 as the country's banking sector has been exposed to the world's market. Indian banks
were finding it difficult to compete with the international banks in terms of customer
service, without the use of information technology.
The RBI set up a number of committees to define and co-ordinate banking technology.
These have included:
Transfer (EFT) system, with the BANKNET communications network as its carrier. It
also said that MICR clearing should be set up in all branches of all those banks with
more than 100 branches.
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Bank type
Number of
On-site
Off-site
Total
branches
ATMs
ATMs
ATMs
Nationalised banks
33,627
38,606
22,265
60,871
13,661
28,926
22,827
51,753
4,511
4,761
4,624
9,385
1,685
12,546
26,839
39,385
242
295
854
1,149
Foreign banks
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Bank type
TOTAL
Number of
On-site
Off-site
Total
branches
ATMs
ATMs
ATMs
53,726
85,134
77,409
1,62,543
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COMPANY PROFILE:
SLOGAN:With you right through.
Helping Indians experience the joy of home ownership.
The road to success is a tough and challenging journey in the dark where only obstacles light the
path. However, success on a terrain like this is not without a solution.
As HDFC found out over three decades ago, in 1977 the solution for success is customer
satisfaction. All you need is the courage to innovate, the skill to understand your clients and the
desire to give them your best. HDFCs objective from the beginning has been to enhance
residential housing stock and promote home ownership. Now, HDFCs offerings range from
hassle free home loans and deposit products, to property related services and a training facility.
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HDFC also offers specialized financial services to their customer base through partnerships with
some of the best financial institutions worldwide.
OBJECTIVES AND BACKGROUND:
Against the trend of rapid urbanization and a changing socio-economic scenario, the demand for
housing has grown explosively. The importance of housing sector in the economy can be
illustrated by a few key statistics. According to the National Building Organization (N.B.O), the
demand for housing is estimated at two million units per year and the total housing short fall of
estimated to be 19.4 million units, of which 12.76 million units is from rural areas and 6.64
million units is from urban areas. The housing industry is second largest employment generator
in the country. It is estimated that the budgeted two million units would lead to the creation of an
additional ten million man-years of direct employment and another 15 million man-years of
indirect employment
BACKGROUND:
HDFC was incorporates in the year 1977, with the primary objective of meeting a social need
that of promoting home ownership by providing long-term finance to house holds for their
housing needs. HDFC was promoted with an initial share capital of Rs.100 millions.
BUSINESS OBJECTIVES:
The primary objective of HDFC is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner and to promote home
ownership. Another objective is to increase the flow of resources to the housing sector by
integrating housing finance sector with overall domestic financial markets.
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ORGANIZATIONAL GOALS:
1. Develop close relationships with individual households.
2. Maintain its position has a premier housing finance institution in the country.
3. Transform ideas into viable and creative solutions
4. Provide consistently high returns to shareholders.
5. To grow through diversification, by leveraging off the existing client base.
CONSULTANCY SERVICES:
HDFC is a unique example of housing finance company that has demonstrated the viability of
market oriented housing finance in a developing country. It is viewed as a market leader in the
Housing finance sector in India. The World Bank considers HDFC a model private sector housing
finance company in developing countries and a provider of technical assistance for new and
existing institutions in India and abroad. HDFCs executives have undertaken consultancy
assignments related to housing finance and urban development on behalf of multi lateral agencies
allover the world.
HDFC has also served as consultant to international agencies such as World Bank, United States
Agency for International Development (USAID), Asian Development Bank, United Nations
Centre for Human Settlements, Common wealth Development Corporation (CDC) and United
Nations Development Programme (UNDP).
At the national level, HDFCs executives have played a key role in formulating national housing
policies and strategies. Recognizing HDFCs executives to join a number of comities and task
force related to housing finance, urban development and capital markets.
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Telephone Banking. The Bank also has a network of about over 1054 networked
ATMs across these cities. HDFC Banks ATM network can be accessed by all
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domestic and international Visa, MasterCard, Visa Electron, Maestro, Plus, Cirrus
and American Express Credit, Charge cardholders. The Banks expansion plans
take into account the need to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the to
build a strong retail customer base for both deposits and loan products. Being a
clearing settlement bank to various leading stock exchanges, the Bank has branches
in the centers where the NSE/BSE has a strong and active member base. HDFC
Bank also has Private Banking Group which offers investment advisory and
portfolio management services to its clients.
HDFC Bank has won many awards for its excellent service. Major among them
are Best Bank in India by Hong Kong-based Finance Asia magazine in 2006 and
Company of the Year Award for Corporate Excellence 2005-05. Business Today
has declared HDFC Bank the Best Bank for the year 2007. Net Profit for the
nine months ended 31st December 2007 up by 31.3%.
PROMOTERS
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
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markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite.
The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Bank's business philosophy is based on four core values - Operational Excellence,
Customer Focus, Product Leadership and People.
BUSINESS STRUCTURE
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the
bank's equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of
the equity is held by Foreign Institutional Investors (FIIs) and the bank has about
190,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and
the National Stock Exchange. Shares are listed on the New York Stock Exchange
(NYSE) under the symbol "HDB".
MANAGEMENT
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Mr. Jadish Capoor took over as the bank's Chairman in July 2002. Prior to this, Mr.
Capoor
was
Deputy
Governor
of
the
Reserve
Bank
of
India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over
25 years and before joining HDFC Bank in 1994 was heading Citibank's operations
in Malaysia. The Bank's Board of Directors is composed of eminent individuals
with a wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting
and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines.(ATMs).
BUSINESSES
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WHOLESALEBANKING:
The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agri-based businesses. For
these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime public sector companies.
It is recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members
and banks.
Retail banking services
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by worldclass service and delivered to the customers through the growing branch network,
as well as through alternative delivery channels like ATMs, Phone Banking, and
Net Banking and Mobile Banking.
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The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) services for retail customers, providing customers
the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit
card as well. The Bank launched its credit card business in late 2002. By
September 30, 2006, the bank had a total card base (debit and credit cards) of 5.2
million cards. The Bank is also one of the leading players in the "merchant
acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With
the liberalization of the financial markets in India, corporate need more
sophisticated risk management information, advice and product structures. These
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and fine pricing on various treasury products are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is required
to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio
CREDIT RATING
HDFC Bank has its deposit programmers rated by two rating agencies - Credit
Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited.
The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A]
by CARE, which represents instruments considered to be "of the best quality,
carrying negligible investment risk". CARE has also rated the Bank's Certificate of
Deposit (CD) programme "PR 1+" which represents "superior capacity for
repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd.
(100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's
deposit programme, with the outlook on the rating as "stable". This rating indicates
"highest credit quality" where "protection factors are very high". HDFC Bank also
has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion rated by
CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of
"CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (Ind)" with the outlook on the rating as "stable". In each
of the cases referred to above, the ratings awarded were the highest assigned by the
rating agency for those instruments.
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Registration (on October 23, 2001) by the Insurance Regulatory and Development
Authority to transact life insurance business in India.
In 2010, HDFC Bank won the award for "Operational Excellence in Retail Financial
Services" India.
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CHAPTER 3
REVIEW OF LITERATURE
Quality Circles (QC), participative decision making (with selected consideration of the broader
area of decision making in organization), Job Involvement, communication climate and job
satisfaction,
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Stevens and Moore believe that the presence of each of the above 10 factors is crucial for the
survival of a QC program.
Metz (1980) and Cole ((1980) have warned that failure to include and /or educate middle
management personnel when QC programs are initiated can lead to oppositional when QC
programs are initiated can lead to oppositional and obstructional attitudes and behaviors on the
part of supervisors. these attitudes and behaviors stem from the belief the circle activities are an
infringement on their ( the supervisors) own job responsibilities and/or QC suggestions are a
reflection of their own inadequate job performance (and hence represent a threat to their job
security) Burck (1981) points to the importance of a trusting relationship between management
and employees as a necessary ingredient for QC success. Cole (1980b) further emphasizes the
importance of financial incentives and recognition as additional motivators for QC members.
These impressions of QC experts concerning the necessary ingredients for QC success all
assume that QC programs indeed result in improvements related to the increased organizational
effectiveness. However, given the lack of research on the subject even this most basic of
assumptions cannot be made. Despite the assertion by Rieker and Sullivan (1981) that assessing
QC effectiveness may cannot be possible or cost effective in the near term because of the
difficulty in isolating the effects of one relatively small component of an integrated
organizational structure, research must be conducted in to the area if the QC concept is to be
anything more than merely a passing fad (Ouchi, 1981)
Only four studies QC outcomes presently appear in the literature. The first, an uncontrolled field
experiment conducted by general dynamic Pomona Division (Hunt, 1981) reports the results of a
six month pilot program, the purpose of which was to provide information for management as an
aid for the evaluation of the long range potential of QCs within the firm. Several morale,
46
motivation and performance criteria were monitored with before and after comparisons made
for Quality Circle members and other employees. No mention was made of controls for possible
differences between members of the QC group and the other employees comparison group; nor
were there indications of controls made for changing group composition. Though the author
noted that Quality circle members demonstrated superior performance on measures of product
Quality, error reduction job involvement and problem-solving capabilities when contrasted with
other employees, these conclusions must be viewed with caution due to the limitations of the
experimental design.
In noting the need for QC program evolution, Donovan and Van Horn (1980) have provided the
following suggestions:
1. Measuring of multiple levels which includes objective measures of productivity and
quality (such as hours/unit and defects/.unit) and assessment which provide an overview of
program coats.
2. Effective research tools including surveys and questionnaires which provide
information concerning job and climate variables related to high productivity and satisfaction.
3. Adequate research. Designs providing pre-and post circle implementation
comparisons and, where possible, control group of baseline information.
The authors conducted five independent studies of QC effectiveness at Honeywell, Inc. upon
which they concluded that the intervention was responsible for dramatic performance and
efficiency improvements. However, due to significant flaws in study design, it is impossible to
assess the true impact of the circles. No controls for the changing memberships of the QC and
control groups were incorporated into the study. Further, the authors made no specific mention of
47
the composition of the various circle and control groups if circles membership was voluntary; it
was likely that the circle member exhibited differences of personality and motivation which
distinguished them from those who chose not to participate. If the composition of the QC group
was not a representative sample of employees performing similar work at Honeywell, Inc., then
no generalization of the study result can be made which will apply to others organizational
employee groups. On the other hand, if existing work groups were designated as QC groups and
controls , group equivalence is not assured through randomization through pretests were
administrated to both QC and control groups; no mantion was made as to whether pretest
observations were used to develop correction factors to be used to compensate for pre-existing
group differences.
Tortorich at all (1981) developed a method of QC evaluation at Martin Marietta Corporation
Michoud Assembly division which avoid some of the pitfalls discussed above .the following
three categories of effectiveness measures were developed for internal use by managers, program
administrators, facilitators and the circles themselves.
1. Program measures are obtained which are direct measures of QC growth and efficiency and
include assessments of the number of supervisors and management personnel completing circle
leadership training, the number of employees completing circle training, the number of circles
formed, the average circle membership size, success rate, the ratio of trained employees
volunteering for circle activity, the number and rate of presentations made by circles to
management, the percentage of approved proposals , and the direct cost savings. Resulting from
circles activities.
2. Personnel outcomes are asses; these are defined as the effect of QCs on employees attitudes
concerning their job situation as measured by various attitude questionnaires.
3. Organizational outcomes are also evaluated Organizational outcomes are the effects of QCs on
such cost related criteria as performance rates, defect rates, scrap rates, attrition rates, lost time,
48
Summary data is presented in Tortorich et al paper through rigorous statistical analysis is not
included, between 90 to 100% of the suggestions offered to management by the QC groups in the
areas of Quality improvement, cost reduction, tooling and training were approved over the
January, 1980 to june,1981 time period.
49
Employee attitudes, as measured by a survey, were assessed When the work attitudes of those
who had participated in QC activity for at least six-months were concurrently compared with the
work attitudes of untrained QC members,the formed were found by Tortorich et al. to
demonstrate a number of more positive work attitudes. For the year 1980, significant differences
(P=.05) were found between the comparisons groups for the following job related attitudes:
employee supervisor relations, satisfaction which supervisor, employee influence, internal
motivation, job satisfaction, team climate, growth satisfaction and job performance. In short, the
results suggested that QC groups can provide potentially help full inputs to the managerial
decision making process as well as promote improved employee work attitudes.
The most rigorous evaluation of QC outcomes in the literature is reported by Steel, Lloyd,
Ovalle and Hendrix (1982) and Steel, Ovalle and Lloyd (1982). The organizational assessment
package (OAP), a survey questionnaire consisting of 109 items (rating scales) and 24 factors, was
administered to all members of a base civil engineering division at a Department of Defense
installation shortly before a QC program was initiated in December, 1980.
Employees of 14 departments were trained in QC techniques and then offered the opportunity to
participate in one of several QC groups. Members of an additional 37 Departments from the same
division were provided no direct exposure to the Qc program and served as the control group for
this study. There were no controls for changing group membership this is a serious
methodological limitation but one which difficult to incorporate in field study research.
Considerable fluctuations in the demographic measures during the six-to-nine months interval
between administrations of the preset measures suggest changes in the composition of treatment
groups during the course of this experiment the absence of controls for changing group
membership such as those employed by Tortorich et al.(1981) are likely to limit the
50
interpretability of findings for any study where QC and control groups are characterized by high
mortality of subjects.
Utilization of intact work group as experimental (QC) and control subjects necessitated the use of
the non equivalent control group design (Campbell & Stanley, 1963). This quasi-experimental
design is characterized by taking preset of both experimental and control groups before the
intervention is initiated A statistical correction adjusting for pretest differences was then made
group differences on the posttest were evaluated in order to compensate for pre-existing group
differences. The data were analyzed employing stepwise hierarchical regression analysis with the
result that no significant increases in R2 were observed for the 23 OAP attitudinal measures. This
suggests that QC participation did not significance impact employee work attitude through the
authors state that the following methodological limitations severely impacted study results:
1. Because QC groups were formed at staggered intervals, some did not have enough time to
reach maturity prior to post test data collection. Three of the six QC groups functioned for
less than one month when post test data was collected.
2. Experimental mortality (discussed above)
3. Several significant demographic differences existed between the treatment and control groups
at the studys outset.
4. Behavioral and group effectiveness outcomes of QC participation were not measured.
5. The sample size was small: the treatment condition contained only 14 functional work units,
enhancing the likelihood of Type II errors.
The interpretability and generalized of findings are restricted by these limitations, yet this study
is important from a historical perspective. It is the first research reported by these limitations, yet
this study is important from a historical perspective. It is the first research reported in the QC
literature that assesses attitudinal outcomes of QC activity while employing an experimental
design that incorporates control group comparisons and statistical control for non Equivalent of
51
matched groups.
Whereas research regarding the outcomes associated with the QC approach to employee
participation in decision making is quite in both its scope and methodology, much work has been
coming the more general area of participative decision making. It is to the body of Literature
addressing this topic that we now turn.
CHAPTER 4
RESEARCH METHODOLOGY
52
Self development.
Recognition.
Achievement satisfaction.
53
54
2.
3.
4.
55
RESEARCH METHOLOGY
As the organization identified human resource as their asset, taking care of them is very
important to make them motivate for the achievement of the goal. How welfare activities to be
structured so that it should be up to the satisfactory level of the employees is very critical.
Quality Circles are to know the Quality circle activities and hoe it is practiced, and to know
whether the employees are aware of it and availing the benefits.
The main objective of Quality Circles is self and mutual development, cohesive team work and
engaged in continuous improvement activities, thus improving their quality of work life.
METHODOLOGY:
56
The methodology used in this project has been that of unstructured interview of the guide, which
has facilitated the extractions of information. Although there has been a structured questionnaire
to capture the information.
DATA COLLECTION
Primary data
Collected through responses of employees related to the topic with the help of the structure
questionnaire.
Secondary data
Collected through Broachers news magazines, Hand Books, corporate journals and apex
manuals, web sites.
2.Aware
6.Sometimes
10.To some extent
13strongly disagree
3.only basics
4.Not aware
7.rarely
8.Never
11.satisfied
14.Important 15. Very important
SAMPLING
Population
Sample size
ANALYTICAL APPROACH
The assumption has been carried out with the help of chi square method, presuming hypothesis
for each question. Pie chart representation shows the percentage responses received from the
questionnaire.
ASSUMPTIONS
The study assumes that the information revealed by the respondents is authentic and not
misleading.
57
The experimenters had no control over the extent to which managerial support of the QC
programs differed in the work groups and organizations under the study
As the Quality Training was provided by the base of QC Facilitator, the experimenters had no
control over any differences in training emphasis and/or technique to which the various QC were
exposed.
58
CHAPTER 5
DATA ANALYSIS &
INTERPRETATION
59
Q.1 Since how many years have you been working with this organization?
S. No
Opinion
No. of
respondents
Percentage
0-5 Years
28
28
5-10 Years
47
47
10-15 Years
14
14
More than 15
Years
11
11
100
100
Total
60
INFERENCE:
1. 0-5 Years (28%)
2. 5-10 Years (47%)
3. 10-15 Years (14%)
4. More than 15 Years (11%)
S. No
Opinion
No. of
respondents
Percentage
Fully Aware
44
44
Partially aware
31
31
only basics
21
21
Not aware
100
100
Total
61
INTERPRETATION:
Most of the employees are aware of the Quality Circles.
Q.3 Do you involve in Quality circles teams working in your work area?
S. No
Opinion
No. of
respondents
Percentage
Frequently
28
28
Some times
47
47
Rarely
14
14
Never
11
11
100
100
Total
62
INTERPRETATION:
The Majority of the respondents i.e. 47% agree and only 11% disagree with the statement
S. No
Opinion
No. of
respondents
Percentage
Yes
67
67
No
33
33
100
100
Total
63
INTERPRETATION:
Most of the employees are having membership in Quality Circles
S.
No
1
2
Opinion
Improvement in
Human Relations
Promotion of Work
Culture
No. of
respondents
Percentage
19
19
Improve Productivity
13
13
Enhance Problem
Solving Capacity
12
12
64
Total
53
53
100
100
INTERPRETATION:
The majority of the respondents i.e. 53% agree and only1% of respondent wants to make some
improvement in human relations.
Q.6 Do you think quality circle develops a participative environment in the
Organization?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
55
55
To Some extent
38
38
Does not
Not aware
100
100
Total
65
INTERPRETATION:
Regarding feedback 55% of the employees are fully agree where as 3% of the employees are not
aware of quality circles.
Q.7 Do you think that quality circles team can solve the problems of your
work area?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
39
39
To Some extent
55
55
Never
100
100
Total
66
INTERPRATATION:
Most of the employees are agree to take active part in quality circles team to solve the problems
in that work area
Q.8 Do you think that Quality Circles are helpful in Cost Reduction?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
59
59
To Some extent
37
37
Never
100
100
Total
67
INTERPRETATION:
Out of 100 employees 59% of the employees are agree to belive Quality Circles are helpful in
Cost Reduction.
Q.9 Do you think that Quality Circles are helpful in increasing Productivity?
S. No
Opinion
No. of
respondents
Percentage
Yes
66
65
To Some extent
32
32
Never
100
100
Total
68
INTERPRETATION:
Out of the 100 employees 66% percent of the employees are agree to declare Quality Circles are
helpful in increasing Productivity
Q10. Do you think that Quality Circles are helpful in building a Positive
Work Culture?
S. No
Opinion
No. of
respondents
Percentage
Yes
70
70
To Some extent
28
28
Never
69
Total
100
100
INTERPRETATION:
Regarding feed back 70% of the employees are satisfied whereas 2% of the employees are not
satisfied with this statement.
Q11. Does the management keep track on the activities of Quality Circles?
S. No
Opinion
No. of
respondents
Percentage
Yes
56
56
To Some extent
41
41
Never
100
100
Total
70
INTERPRETATION:
Out of 100 employees 56% of the employees are agree to say the management keep track on the
activities of Quality Circles
Q12. Are you satisfied with the Quality Circle Movement in your
organization?
S. No
Opinion
No. of
respondents
Percentage
Highly satisfied
25
25
Satisfied
70
70
dissatisfied
100
100
Total
71
INTERPRETATION:
Out of 100 employees are 70 % of the employees are Satisfied with the Quality Circle Movement
inHDFC, Hyderabad.
Q13. Rate the statement Top Management is interested in motivating the
employees through Quality Circles
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
22
22
Agree
61
61
Disagree
14
14
72
Can't say
Total
100
100
INTERPRETATION:
The majority of respondents i.e 61%agree and only 3%of the employees are not able to satisfied
with this statement.
Q14. Do you think quality circles are important for the growth of the
company?
S. No
Opinion
No. of
respondents
Percentage
Very important
45
45
Important
51
51
Not important
73
Can't say
Total
100
100
INTERPRETATION:
The majority of respondents i.e 51% agree and only 2%of the employees are not able to satisfied
with this statement.
Q15. Rate the statement Top Management Rewards the Quality Circle
Members for their Achievements
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
28
28
Agree
66
66
Disagree
Can't say
74
Total
100
100
INTERPRETATIONS:
Out of the 100 employees 66% of the employees are agree and 28% of the employees are
strongly agree to say Top Management Rewards the Quality Circle Members for their
Achievements
Q16. Do you think involvement in Quality Circles is un-productive or waste
of time?
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
Agree
Disagree
91
91
Can't say
75
Total
100
100
INTERPRETATION:
The majority of the respondents i.e.91% disagree and only 4% of the respondents agree with this
statement.
76
CHAPTER 6
FINDINGS, CONCLUSIONS, SUGGESTIONS
FINDINGS
Out of 100 employees 56% of the employees are fully agree &41% of the employees are think To
some extent to say the management keep track on the activities of Quality Circles
Out of 100 employees are 70percentage of the employees Satisfied &25% of the employees are
highly satisfied with the Quality Circle Movement in HDFC, Hyderabad.
Most of the emplyees think Top Management is interested in motivating the employees through
Quality Circles.
Out of the 100% employees 51% of them think quality circles are useful for the growth of the
company.
Out of the 100 employees 66% of them agree the Top Management Rewards the Quality Circle
Members for their Achievements
CONCLUSION
Helps develop ability to work in teams and appreciate others point of view
If all those who are interested in the healthy propagation of the philosophy in the country
take every opportunity to stress What Quality Circles are not?, as enumerated above,
because there are quite a few instances
Where Quality Circles failed to take off due to such misconceptions prevailing in the
minds of the Management personnel
78
Hence it can be safely concluded that no progressive organization can afford to ignore the
concept of quality circles.
Quality Circles are relevant for factories, firms, schools, hospitals, universities, research
institutes, banks, government offices etc.
SUGGESTIONS
79
Reward or Praise/appreciation works as magic for an individual and motivates them for
work.
Role clarity of each position should be defined and based on that individuals can plan
their work accordingly.
There are regular review and comparison of current & past performance to detect gradual
deterioration in the strategy
80
CHAPTER 7
BIBILIOGRAPHY &
ANNUXURE
BIBLOGRAPHY
Text Books
1. K.Aswathappa (1997), Human Resources and Personnel management Tata McGraw-Hill
publishing Company Ltd, New Delhi-110001
2. John M.Ivancevich (2003), Human Resources and Personnel management Tata McGrawHill publishing Company Ltd, New Delhi-110001
81
Websites:
www.citehr.com
www.managementparadise.cm
www.scribd.com
www.wikipidia.com
www.qualityofworklife.com
82
ANNEXURE
Questionnaire
Q1. Since how many years have you been working with this organization?
A) 0-5 Year
D) Not aware
Q3. Do you involve in Quality Circle teams working in your work area
A) Frequently
B) Sometimes
C) Rarely
D) Never
B) No
Q6. Do you think quality circle develops a participative environment in the organization?
A) Fully Agree B) To some extent
Q7. Do you think that quality circles team can solve the problems of your work
area?
A) Fully
B) To some extent
C) Never
84
Q8. Do you think that Quality Circles are helpful in Cost Reduction?
A) Yes
B) To some extent
C)Never
Q9. Do you think that Quality Circles are helpful in increasing Productivity?
A) Yes
B) To some extent
C) Never
Q10. Do you think that Quality Circles are helpful in building a Positive Work Culture?
A) Yes
B) To some extent
C) Never
Q11. Does the management keep track on the activities of Quality Circles ?
A) Yes
B) to some extent
C) Never
Q12. Are you satisfied with the Quality Circle Movement in your organization?
A) Highly-Satisfied
B)Satisfied
C)Dissatisfied
Q13. Rate the statement Top Management is interested in motivating the employees through
Quality Circles
A) Strongly Agree
B) Agree
C) Disagree
D) Cant say
Q14. Do you think quality circles are important for the growth of the Company?
A) Very Important
B) Important
Q15. Rate the statement Top Management Rewards the Quality Circle Members for their
Achievements
A) Strongly Agree
B) Agree
C) Disagree
D) Cant say
A) Strongly Agree
B) Agree
C) Disagree
86
D) Cant say
87