A PROJECT REPORT

ON

“A STUDY OF EMPLOYEE ENGAGEMENT AT HDFC BANK”

FOR

MASTERS OF MANAGEMENT STUDIES

[HUMAN RESOURCE]

SUBMITTED BY :

[PRATIK MANGESH SHINDE]

ROLL NO. MS1718078

SUBMITTED TO :

PROJECT GUIDE

Prof. / Dr. VARSHA P

INSTITUTE OF MANAGEMENT & COMPUTER STUDIES

THANE (W)

Batch 2017-19
 CERTIFICATE

This is to certify that PRATIK MANGESH SHINDE of MMS (Masters of

Management Studies) Semester 4, Batch (2017-2019) has successfully completed
the project on A STUDY OF EMPLOYEE ENGAGEMENT AT HDFC
BANK under the guidance of Prof. / Dr. VARSHA P

Date:-
Place:-

Director

Project Guide / Internal Examiner External Examiner

 DECLARATION

I, PRATIK MANGESH SHINDE the student of MMS Semester 4, Batch (2017-19)

hereby declare that I have completed the project on A STUDY OF EMPLOYEE
ENGAGEMENT AT HDFC BANK successfully.

The information submitted is true and original to the best of my knowledge.

Date:-
Place:-

Yours faithfully,

PRATIK MANGESH SHINDE

 ACKNOWLEDGEMENT

I take this opportunity to express my gratitude and extend my thanks to all those who
helped and guided me to make this endeavor successful.
I express my sincere thanks to Director Sir for giving us the facilities and resources
in bringing project successfully.
I would also like to thank our project guide (Prof. / Dr. Varsha P) who helped me in
the completion of project.
I cannot end this page without thanking my family and friends for their support and
encouragement while undertaking this project.

PRATIK MANGESH SHINDE

 ABSTRACT

This project entitled “A STUDY OF EMPLOYEE ENGAGEMENT AT

HDFC BANK " aimed at studying the EMPLOYEE ENGAGEMENT of any
organization are very important functions because these decide the most suitable
management which steers the industry to its desired goals.

This project was undertaken as a part of the curriculum of BMS course, which is
compulsory for each student to have the training in any organization to their
respective specialization, as to gain firsthand knowledge of the organization. This
exposure enables the trainees to learn effective and efficient ways and means to
solve the real problems faced by the organization and also to understand its
dynamics.
Chpt.No INDEX Pg no

1.0.Introduction
1.1. Objective of study 7-13
1 1.2. Scope of study
1.3. Research Methodology
1.4. Limitation of Study
14-28
2 About Employee Engagement

3 About HDFC - Company Profile 29-34

4 HDFC- Employee engagement 35-41

4.1. Employee engagement training in
HDFC BANK
4.2. Importance employee engagement
in HDFC BANK
4.3. Employee engagement practices in
HDFC BANK
5 Data analysis and Finding 42-52
6 Conclusion and suggestions 53-56
Bibliography 57-58
Webliography

Annexure 59-61
 CHAPTER-1
INTRODUCTION
INTRODUCTION
Success today requires a good bit more than good attendance. Yet, multiple
studies in different countries and across industries show that employees who are
passionate about their jobs and the organizations in which they work are in the
minority. Some of the Survey conducted by few organization revealed that
approximately 19% of the employees are highly engaged The Corporate
Executive Board, looking at levels of engagement across 50,000 employees
around the world, placed only 11 percent in what they dubbed “true believer”
category.1 Towers Perrin’s recent “Talent Report” is slightly more optimistic,
finding just 17 percent of the 35,000 employees surveyed to be highly engaged.
40 to 70 percent of employees can be classified as neutral, middle of the road, or
agnostic. Worse yet, an alarming 10 to 20 percent of employees are actively
“disengaged”—just putting in their time or, worse yet, undermining or
badmouthing their organizations and bosses. The economic impact of low
engagement can be staggering. The global survey shows that 34 per cent of the
employees in India are fully engaged and 13 per cent disengaged. As many as 29
percent are ‘almost engaged’. What makes these numbers especially
discouraging is that, supposedly, we have evolved from the dark ages of
“personnel management.” On one hand, for the past two decades we have been
trying to realize the benefits of empowerment, teamwork, recognition, people
development, performance management, and new leadership styles. Evidently,
there is a big difference between putting in place initiatives that have the overall
goal of increasing employee engagement and truly seeing the payoffs.
Definition of Employee Engagement

Employee engagement can be defined as an employee putting forth extra

discretionary effort, as well as the likelihood of the employee being loyal and
remaining with the organization over the long haul. Research shows that engaged
employees: perform better, put in extra efforts to help get the job done, show a
strong level of commitment to the organization, and are more motivated and
optimistic about their work goals. Employers with engaged employees
tend to experience low employee turnover and more impressive business
outcomes.

Employee engagement is more than just the current HR 'buzzword'; it is essential.

In order for organizations to meet and surpass organizational objectives,
employees must be engaged. Research has proven that wholly engaged
employees exhibit,
Higher self-motivation.
Confidence to express new ideas.
Higher productivity.
Higher levels of customer approval and service quality.
Reliability.
Organizational loyalty; less employee turnover.
Lower absenteeism.
 1.1 OBJECTIVES OF STUDY
1. PRIMARYOBJECTIVE:

To open new savings accounts by convincing customers and to promote the benefits of
those which are provided by the bank.
To find the different way of convincing customers.
To study brand image of the bank.
To increase the business of the bank.

2. SECONDARY OBJECTIVES:

To determine the need and purpose of a sales executive.

To understand the deciding criteria for people to become sales executive.
To offer suggestions based upon the findings.

1.2 SCOPE OF THE STUDY

The same problem was with the all other branches of HDFC Bank even out of
the. The management is conducting the same research on a big ground while my
contribution is tiny. Though my sample size and geographical area was defined
and confine to a particular territory but the application of out put from the
research are going to be wide.

PRODUCT SCOPE:
Studying the increasing business scope of the bank.
Market segmentation to find the potential customers for the bank.
To study how the various products are positioned in the market.
Corporate marketing of products.
Customers’ perception on the various products of the bank.
 1.3 RESEARCH METHODOLOGY
RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the
problem. By analyzing the secondary data, the study aim is to explore the short
comings of the present system and primary data will help to validate the analysis
of secondary data besides on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration.
Due to time limitation and other constraints direct personal interview method is
used. A structured questionnaire was framed as it is less time consuming,
generates specific and to the point information, easier to tabulate and interpret.
Moreover respondents prefer to give direct answers. In questionnaires open
ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA:

1: Secondary Data: It was collected from internal sources. The secondary data
was collected on the basis of organizational file, official records, news papers,
magazines, management books, preserved information in the company’s
database and website of the company.

2: Primary data: All the people from different profession were personally
visited and interviewed. They were the main source of Primary data. The method
of collection of primary data was direct personal interview through a structured
questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take

sample from the universe to know about its characteristics.

Sampling Units:Different professionals Chartered Accountants, Tax

Consultants, Lawyers, Business Man, Professionals and House Wives of
Lucknow.
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.
SAMPLE SIZE:

My sample size for this project was 200 respondents. Since it was not possible to
cover the whole universe in the available time period, it was necessary for me to
take a sample size of 100 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of

collection of data will be based on Survey Method and Field Activity. Primary
data collection will base on personal interview. I have prepared the questionnaire
according to the necessity of the data to be collected.

RESEARCH LIMITATIONS:

It was not possible to understand thoroughly about the different marketing

aspects of the Financial Consultant within 60 days.
As stipend, money was not given it was difficult to continue the project work.
All the work was limited in some limited areas of so the findings should not be
generalized.
The area of research was and it was too vast an area to cover within 60 days.
 1.4 LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not exceed.
Limitations of this project are:-

 The project was constrained by time limit of two months.

 Mindset of people may vary depending upon their age, gender, income etc.
 Getting appointment from the concern person was very difficult.
 People mind set about the survey was an obstacle in acquiring complete information
& positive interaction.
 Respondents were very busy in their schedule. So it was very time consuming for
them to answer all the questions properly.
 Chapter-2
About Employee Engagement
 Need of Employee Engagement

The general principles of employee engagement have been around for decades.
During the past five years, though, there has been a surge in the popularity of
employee engagement.

There are four primary drivers.

People have become the primary source of competitive advantage. The

Brookings Institute (2003) examined the primary source of market value in
today’s organizations and how it has changed over time. In 1982, 62 percent of
an organization’s market value came from tangible assets and 38 percent from
intangible assets. Tangible assets include things like machinery, products,
facilities, etc. Intangible assets, on the other hand, include factors such as brand,
intellectual property, and, most important, the quality of the workforce. By 2002,
20 years later, the source of value had almost totally flipped. Almost 80 percent
of market value today comes from the intangible with a scant 20 percent coming
from tangible assets. As we all have heard before, products can easily be copied,
a technological edge can prove fleeting, and more facilities can be built, but the
quality of an organization’s talent, its passion and commitment, is nearly
impossible to replicate. Engagement is the fuel that drives the value of intangible
assets.

Retention and the war for talent. The landmark 1998 McKinsey study, The War
for Talent, was among the first to talk about the potential for workforce shortages
due to the aging population. The study’s authors called upon organizations to take
more seriously their efforts to attract and retain talent, to assure that they would
be able to survive and thrive in the future. In the late 1990s and early 2000s, the
slump in the global economy quickly took the spotlight off of the anticipated
talent shortage. And some predict that a portion of today’s aging workers will
delay their retirements out of necessity, attenuating the expected talent shortage.
Since 2003 the picture is once again changing, albeit not as quickly as expected.
For example, the Society for Human Resources Management reported that 48
percent of the employees it polled are actively seeking new jobs.

Additionally, the workforce is getting older, with many of the baby boomers
hitting 60 in 2006 and ready to retire. Over and above the workforce cost of
increased retirements, companies are beginning to take heed of the enormous
financial costs of turnover
Popular appeal. Remember the reengineering wave? Even those who used it as
more than just a guise for massive layoffs found it painful. Six Sigma
implementations are invaluable to business performance, but most companies are
finding them too complex to implement well. Engagement is a different matter
altogether. While it still takes patience to implement, engagement gets to the
“hard stuff” by focusing on the “softer stuff.” As one manager said: “It’s about
appealing to the head and the heart.” Engagement is about creating passion, it’s
about focusing on what people do well, and it’s about development and
recognition. Some have called employee engagement a form of positive
psychology which, on the whole, is an easy pill for organizations and their
employees to swallow.

Overwhelming impact. The human resources function has been under pressure
for decades to prove that it makes a difference. While CEOs may espouse the
importance of their workforces in their annual reports, when times get tough, HR
is among the first to get the budget axe. Why? A lack of convincing evidence on
the value of HR initiatives. HR professionals are scrambling, according to a
recent Conference Board report, to prove that their activities and investments are
both efficient and positively influential to business strategy. The positive
relationship between engagement and performance (documented in hundreds of
studies, with the evidence mounting every day) provides a way for HR to prove
its contribution. It’s a fact: The higher the level of engagement, the higher the
performance of the business. The research is not inconclusive, not limited to one
country or industry, and not contained to a few hundred people—it’s
overwhelming.
How to Make Employees Engage
Growth and development - An exciting position, with plenty of opportunity for
growth, learning, and advancement for employees is always helpful in retaining
employees.
Support and recognition - Giving those rewards and recognition.
In many instances, employee retention starts just as soon as an employee is hired.
If a company sees an unusual amount of potential in a new hire, management
could make them feel appreciated right off the bat. In a way, thispractice can be
considered a combination of recruitment and retention tools.
Employee Participation in decision making is also a very effective engagement
activity in the organization.
Aligning effort with strategy—Engagement begins with employees’ clear
understanding of what they should be doing on the job. Each employee needs a
solid job description and a clear set of performance expectations.
Empowerment—Empowerment is a feeling of job ownership and commitment
brought about through the ability to make decisions, be responsible, be measured
by results, and be recognized as a thoughtful, contributing human being rather
than a pair of hands doing what others say.
Teamwork and Collaboration - In the context of engagement, teamwork and
collaboration require good relationships both within the work group and across
work groups.
The Benefits of Employee Engagement
The power of employee engagement is that it is closely connected to business
results. When employees work in an environment in which they can focus their
attention on their work and have a drive to do their best, organizations experience
higher levels of productivity and profitability. Engaged employees look for better
ways to do their work, spend less time on wasted activities, and make effective
use of resources. In the end, companies deliver better products or services and
have more resources left to invest in further improvements. Although it is an
important consideration, high financial compensation is not the only driver of
increased employee retention. As addressed previously, employees decide to stay
with organizations for other reasons, such as growth and development
opportunities, strong leadership, and meaningful work. Turnover costs
organizations millions of dollars each year, and engagement has a proven
relationship to employee retention. No one likes going into a store where the sales
clerks are sullen, absent, or uncooperative. It’s easy to seewhy customers notice
engaged employees and are more satisfied and willing to purchase again. E.g.,
Tom Labadie, director of training and development at CompUSA states, “When
you walk into a store with high engagement scores, you can sense the positive
tone. Employees whistle and smile, they approach customers, and the store gives
off that elusive approachable feeling that customers appreciate.” Organizations
with engaged employees have more satisfied customers, but it’s not just because
employees have better interactions with customers. Engaged employees are more
likely to improve other critical factors affecting customer satisfaction, such as
responsiveness, product quality, thought leadership, innovation, etc. Finally,
higher engagement translates into higher and faster revenue growth. Engaged
employees are more innovative and place more emphasis on meeting customer
needs.
ASSESSING ENGAGEMENT

Over the past eight years, The Gallup Organization has been conducting
exhaustive studies of employee engagement to try and answer these fundamental
questions. One of a handful of engagement evangelists, Gallup has promoted the
value of measuring employee engagement through a series of books, seminars
and programmers; it has also taken the lead in identifying and managing the
factors that impact engagement levels.
In order to rate the engagement of a workforce, first Gallup assesses employees
to determine whether they are engaged, not engaged or actively disengaged.
Engaged employees: are the stars in a company. Passionate about what they do,
they feel a strong connection to their company and perform at high levels every
day while looking for ways to improve themselves and the company as a whole.
Not engaged employees, according to Gallup, are the company zombies who
show up every day and put in just enough effort to meet the basic requirements
of their jobs. Without passion or innovation, these employees neither commit to
the company’s direction, nor do they work against it.
Actively disengaged employees are those who present a big problem for
businesses. Negative by nature, these people are unhappy in their work and they
compound their lack of productivity by sharing this unhappiness with those
around them. They are the proverbial bad apples who revel in their discontent
while undermining the accomplishments of others; as a result, not only do they
achieve little themselves, they also prevent others from being productive too.
 EMPLOYEE ENGAGEMENT IN INDIA
The recent Work Asia research study by Watson Wyatt Worldwide indicates that
India has the highest percentage of highly engaged workers at 78% in Asia as
compared to Japan, which has the lowest employee engagement level at 39%.
Head to head with China, the engagement level of the Indian worker is 20% more
than his Chinese counterpart. These are all encouraging signs - but the challenges
and the opportunities ahead are manifold. The imminent US slowdown, shrinking
of talent pool, slowdown in hiring, larger employee expectations are all
challenges for internal communicators to cope with. The Gallup Organization
describes employee engagement as the "the involvement with and enthusiasm for
work".The challenges faced by organizations in India are around attrition,
communication, career development and engagement while trying to keep pace
with the explosive growth. Outsourcing outfits have the highest attrition rates
losing staff at a rate of between 100% and 200% a year. It is widely believed that
organizations spend an average of 36% of their revenueA Mercer study – ‘What’s
Working’ – a series of national research on worker insights, highlights factors
that make a difference to employee engagement. The survey’s 125 questions
elicit views in the areas defined by Mercer’s Human Capital Strategy Model and
cover training and development, work environment, leadership, performance
management, work/life balance, communication, compensation, benefits, and
engagement.The India study throws up some fascinating directions for HR and
internal communication professionals. Employee engagement is no more just
about the employee’s intent to leave. The employee’s commitment to the
organizations on their employees but do not have a tangible way to measure its
impact.
 HISTORICAL BACKGROUND OF EMPLOYEE ENGAGEMENT

Over the past decade, the way in which people are managed and developed at
work has come to be recognized as one of the primary factors in achieving
improvement in organizational performance. This is reflected by popular idioms
such as “people are our most important assets”.
Back in the good old days of corporate world, things were pretty simple.
Companies put people on career tracks straight out of college; they gave
employees a job for life and waved them goodbye with a gold watch at retirement.
The promise of the stable life as a company employee kept both morale and
productivity high.
Then things changed. Competition increased, margins shrank and shareholders
got more demanding. Suddenly, company staff were finding the very job security
they’d counted on was disappearing, and at speed. This upheaval meant
companies had to find new ways to motivate their employees in order to make
them more productive since, without stability, employees were looking for
something else from their employers. And thus, Engagement was born.
In itself, engagement isn’t really a new idea; owners and managers have been
talking about engagement, in one form or another, for centuries… they just used
different words to express it. In former times, engagement focused more on
productivity and achieving results through threat of punishment or by means of
reward. But common sense - and good communication - eventually won out and,
today, organizations everywhere are spending serious money on all forms of
employee engagement. Boiled down, it simply means ‘developing a happy and
loyal workforce’. Enlightened managers now realize that any company as a whole
will benefit when its employees know what’s going on and they feel part of the
team. The tricky part is in defining what makes a workforce happy, and in
understanding how this good will translates into company success.
From the extant literature review, it is acknowledged that successful
organizations share a fundamental philosophy of valuing and investing in their
employees. In fact many research studies have described human resource
management as a means of achieving competitive advantage. Consistent with this
it is an equally important issue for the organization to retain their critical (core)
employees. Most organization today continues to struggle with retention because
they are relying on salary increases and bonuses to prevent turnover. Essentially
more organizations are now realizing that retention is a strategic issue and
continues to be a competitive advantage.
The term “engagement” stems from the work of Kahn (1990) who distinguished
between being engaged and disengaged at work. Putting the humanistic factors
together, Beer, Specter, Lawrence, Quinn-Mills and Walton (1984) created the
‘Harvard Business School’ model of HRM which focused on people in an
organization to be the key resource. In light of such critical emphasis being placed
on human capital, Paula Katter has aptly noted, “Engagement is all about creating
a culture where people do not feel misused, overused, underused or abused.”

At a very basic level, employee engagement draws from the tenets of the
‘Hierarchy of Needs’ as conceptualized by Maslow, the highest stage of which is
self-actualization; the pinnacle of an individual’s fulfillment of talent and
potential. This theory of ‘higher order needs’ was largely overlooked in the
heydays of scientific ‘assembly line’ manufacturingand motivation to contribute
to the organization’s success plays a significant role. The top three drivers in
India are trust in senior management, how the organization is perceived for
customer service and fair pay. Surprisingly, from an Indian context, the least
valued factors in the continuum were benefits, compensation and performance
management.

In India, having a long-term career is considered positive and stable. Frequent

job changes are viewed negatively and therefore the high scores around the
commitment count are in line with the mindset.
Internal communication and HR professionals need to take note of the
employee’s need for giving feedback and to observe action taken from this.
Employees seem to be getting very little information on the organization’s vision
and future plans, a cause of concern. Other areas for action include the
organization’s reputation in the market – congruent to other research in this space
which believes that organization’s which are socially responsible are considered
better places to work. In the talent managementbracket, managers fare poorly for
their involvement, understanding and support as well as for merit based
appraisals.

Understanding Employee Engagement

Employee engagement can be defined as an employee putting forth extra
discretionary effort, as well as the likelihood of the employee being loyal and
remaining with the organization over the long haul. Research shows that engaged
employees: perform better, put in extra efforts to help get the job done, show a
strong level of commitment to the organization, and are more motivated and
optimistic about their work goals. Employers with engaged employees tend to
experience low employee turnover and more impressive business outcomes.

Employee engagement is more than just the current HR 'buzzword'; it is essential.

In order for organizations to meet and surpass organizational objectives,
employees must be engaged. Research has proven that wholly engaged
employees exhibit,
Higher self-motivation.
Confidence to express new ideas.
Higher productivity.
Higher levels of customer approval and service quality.
Reliability.
Organizational loyalty; less employee turnover.
Lower absenteeism.
Current studies show that organizations are focusing on the meaning of
employee engagement and how to make employees more engaged. Employees
feel engaged when they find personal meaning and motivation in their work,
receive positive interpersonal support, and operate in an efficient work
environment. What brought engagement to the forefront and why is everyone
interested in it? Most likely, the tight economy has refocused attention on
maximizing employee output and making the most of organizational resources.
When organizations focus attention on their people, they are making an
investment in their most important resource. You can cut all the costs you want,
but if you neglect your people, cutting costs won’t make much of a difference.
Engagement is all about getting employees to “give it their all.” Some of the most
successful organizations are known for their unique work environments in which
employees are motivated to do their very best. These great places to work have
been recognized in such lists as Fortune’s 100 Best Companies to Work For.

Hierarchy of Engagement
Employee Engagement at Each Level

In addition, employee segmentation is an important method to utilize when

evaluating employee engagement at each level. For instance, the factors that
engage the most productive employees in an organization may not be the same
as the factors that engage the least productive employees. Those employees who
receive the highest rankings on their performance reviews may tend to express
higher levels of job satisfaction when they are presented with challenging
opportunities that allow them to grow and learn. Those that receive the lowest
rankings might be more focused on issues surrounding work/life balance and job
security. While some factors, such as good communication, are important among
all employees, the attempt to focus on the full spectrum of factors that engage the
entire workforce may cause an organization to omit some of the factors that are
the most important to the company's most productive people.

Employee Satisfaction Does Not Equal Engagement

While organizations may be aware "through the grapevine" that employees are
unsatisfied, it's the reasons for the dissatisfaction that elude them. While
employee satisfaction is important, it's not the end game — it is only one piece
of employee engagement. Satisfaction is imperative in that, for those individuals
who are top performers, satisfaction may be derived from their achievement
orientation, their ambition, or their sense of responsibility. On the other hand, the
attempt to satisfy an under-performer who will only be content with a lightened
workload may not be a worthy cause. Again, the focus is on ensuring that those
individuals who have been identified as top performers and high potentials are
engaged in the organization.
As stated, employee engagement incorporates employee satisfaction, but also
includes the essential elements of pride, commitment and loyalty in the
organization. Engaged employees aren't concerned with meeting the minimum
requirements to complete a task, they are focused on what they can do to better
the company. Essentially, they take ownership in the company despite whether
or not they actually own a share of stock.

Elements of Engagement

Some researchers conclude that personal impact, focused work, and interpersonal
harmony comprise engagement. Each of these three components has sub-
components that further define the meaning of engagement.
Personal Impact-Employees feel more engaged when they are able to make a
unique contribution, experience empowerment, and have opportunities for
personal growth. Past research concurs that issues such as the ability to impact
the work environment and making meaningful choices in the workplace are
critical components of employee empowerment. Some research on retaining
talent found that the perception of meaningful work is one of the most influential
factors determining employees’ willingness to stay with the organization.

Focused Work-Employees feel more engaged when they have clear direction,
performance accountability, and an efficient work environment. Aside from the
personal drive and motivation to make a contribution, employees need to
understand where to focus their efforts. Without a clear strategy and direction
from senior leadership, employees will waste their time on the activities that do
not make a difference for the organization’s success. Additionally, even when
direction is in place, employees must receive feedback to ensure that they are on
track and being held accountable for their progress. In particular, employees need
to feel that low performance is not acceptable and that there are consequences for
poor performance. Finally, employees want to work in an environment that is
efficient in terms of its time, resources, and budget. Employees lose faith in the
organization when they see excessive waste. For example, employees become
frustrated when they are asked to operate without the necessary resources or
waste time in unnecessary meetings.

Interpersonal Harmony-Employees feel more engaged when they work in a safe

and cooperative environment. By safety, we mean that employee trust one
another and quickly resolve conflicts when they arise. Employees want to be able
to rely on each other and focus their attention on the tasks that really matter.
Conflict wastes time and energy and needs to be dealt with quickly. Some
researchers also find that trust and interpersonal harmony is a fundamental
underlying principle in the best organizations. Employees also need to cooperate
to get the job done. Partnerships across departments and within the work group
ensure that employees stay informed and get the support they need to do their
jobs.

Making Use of Engagement

Measurement of employee engagement can have many applications in the

organization. Earlier, it is mentioned that engagement could serve as a general
index of HR effectiveness in an HR scorecard. Also, engagement measures serve
as an easy way to benchmark the work climate against other organizations.
Other uses include:

Needs Analysis-The fundamental issues measured in engagement provide a quick

index of what leaders and HR need to do to make things better. In addition, items
in engagement surveys tend to be very actionable. This means that leaders or
others in the organization can take action that will affect the score on a single
item.

Evaluation-Many learning and performance interventions are designed to impact

some aspect of engagement. When an engagement measure is used as a pre-
implementation baseline, the impact of the intervention can be gauged by
measuring post-implementation changes in engagement.

Climate Survey-Some organizations like to use engagement measures as simple

indexes of the workplaceculture. While more extensive surveys are valuable,
sometimes it’s easier to focus attention on a few simple and proven factors.

Leader or Department Feedback-Depending on the demographic information

collected when the engagement measure is implemented, one can create breakout
reports by department or leader. This means departments and leaders can gain a
better understanding of how engagement in their groups differs from the rest of
the organization. This information can be used to create development plans or
plans for larger-scale interventions.
Measuring the Impact of Employee Engagement
 CHAPTER-3
COMPANY PROFILE
 COMPANY PROFILE
HDFC BANK LTD was incorporated in August 1994 in the name of 'HDFC Bank
Limited’, with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first
to set up a bank in the private sector. The bank was incorporated on 30th August
1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai.
It commenced operations as a Scheduled Commercial Bank on 16th January
1995. The bank has grown consistently and is now amongst the leading players
in the industry .

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain
the market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units.

HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment In a milestone transaction in the Indian
banking industry, Times Bank was merged with HDFC Bank Ltd., effective
February 26, 2000.
MISSION
World Class Indian Bank
Benchmarking against international standards.
To build sound customer franchises across distinct businesses
Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Bank’s business philosophy is
based on four core values such as:-

Operational excellence.
Customer Focus.
Product leadership.
People.
The objective of the HDFC Bank is to provide its target market customers a full range
of financial products and banking services, giving the customer a one-step window for
all his/her requirements. The HDFC Bank plus and the investment advisory services
programs have been designed keeping in mind needs of customers who seeks distinct
financial solutions, information and advice on various investment avenues.

BUSINESS STRATEGY
Increasing market share in India’s expanding banking
Delivering high quality customer service
Maintaining current high standards for asset quality through disciplined credit risk
management
Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.
 BOARD OF DIRECTORS
PERSON DESIGNATION

Mr. Jagdish Kapoor Vice President

Mr. Aditya Puri Managing Director

Mr. PareshSukthankar Executive Director

Mr. Harish Engineer Executive Director

Mr. Keki M. Mistry Director

Mr. AshimSamanta Director

Product and Services

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No
matter what a customer's need and occupational status, we have a range of
solutions that are second to none. Whether you're employed in a company and
need a simple Savings account or run your own business and require a robust
banking partner, HDFC Bank not only has the perfect solution for you, but also
can recommend products that can augment your planning for the future.

It includes these services: -

Saving account.

Current account.

Fix deposits.

Debate account.

Safe deposits lockers.

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever person’s occupation, bank
have confident that person will find the perfect banking solution. There some
saving accounts like: -

Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw

Demand Drafts and withdraw cash. Check up on your balances from the

comfort of your home or office through Net Banking, Phone Banking and Mobile
Banking. If you need money urgently then you can take money from the ATM
machine. There are 1977 ATM centers across the country

Saving plus Account

Introducing the best banking option for you with HDFC Bank Savings plus
Account. Now you can get access to some of the finest banking facilities with
HDFC Bank's Savings plus Account. All you have to do is maintain an Average
Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded

with maximum benefits to make your banking experience a pleasure. By
maintaining an average quarterly balance of just Rs. 25,000/- you get a host of
premium services from HDFC Bank absolutely free.

Senior Citizen Account

HDFC Bank appreciates your needs and endeavors, which is why, they present
an account especially dedicated to customer, which like a dutiful child will help
you fulfill your needs in the best manner possible.

Salary Accounts

In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job deposit
their salary in to the salary account a person can get salary.

Fix deposits service

Long-term investments form the chunk of everybody's future plans. An alternative to

simply applying for loans, fixed deposits allow to borrow from own funds for a limited
period, thus fulfilling needs as well as keeping savings secure.

People can invest his/her money into either in security market or gold or mutual fund
or into a fix deposits.
 Chapter 4
HDFC BANK -EMPLOYEE ENGAGEMENT
 4.1 EMPLOYEE ENGAGEMENT TRAINING IN HDFC BANK

Training is provided in 2 forms

Classroom Training
ICICI Learning Centre - Lonavla
E-Learning Modules
Compulsory Training Mandays to be completed

Classroom Training
Conducted by in-house trainers
Programs such as Managerial Effec-tiveness, Presentation Skills, Busi-ness Continuity Plan
(BCP) etc.
Tie-up with IFMR ( Institute for Fi-nancial Management and Research), Chennai

E-Learning based Training

Functional Modules i.e. Product specific
Credit Cards
Investment and Services
Behavioral Modules
Business Etiquettes
Manager as a Facilitator
Corporate Modules
Five S, Six-Sigma etc.
Induction Modules
Know Your Customers (KYC Norms), Anti-Money Laundering etc
Sprints i.e. short and fast product related training
Foreign Trips to Managers on meeting their targets within time
Yearly off-site for all Groups in India and Abroad e.g. Star Cruise – Singapore, Goa etc.
Photography Competition
Occasional cricket matches organised
Holiday Homes
 4.2 IMPORTANCE OF EMPLOYEE ENGAGEMENT IN HDFC BANK

The private bank’s capacity to manage employee engagement

is closely related to its ability to achieve high performance
levels and superior business results. Some of the
advantages of Engaged employees are:
• Engaged employees will stay in the bank, be an advocate of the banking services, and contribute
to the bottom line of the business success.
• They will normally perform better and are Self-Motivated.
• There is a significant link between employee engagement
and profitability.
• They form an emotional connection with the banks.
This impacts their attitude towards the bank’s clients,
and thereby improves customer satisfaction and service
levels.
• It builds passion, commitment and alignment with the
Bank’s strategies & goals
 4.3 EMPLOYEE ENGAGEMENT PRACTICES IN HDFC
We believe that employees are our greatest assets. A motivated workforce is the key to achieving
important business goals. We have adequate systems and initiatives in place to keep our employees
informed, engaged and empowered. Some of our key initiatives towards engagement are:

1.Josh unlimited:
An in-house series of multi-city, multi-discipline sports events held in over 15 cities in 2013-14.

2.HDFC bank voice hunt contest:

A platform for all the employees of the bank who are passionate about singing, to showcase their
talent on national level.

3.Corporate photography contest:

A pan-India Corporate Photography contest in which 21 photographs clicked by the employees of
the Bank were selected out of over 1300 entries. These photographs were displayed at the Prince
of Wales Museum.

4.Sensations:

An 'In-house Musical Band' where employees across locations & functions come together to share
their passion for music & form their bands.
How is employee engagement measured by HDFCbank?

An accurate measure of engagement is one that identifies that factors associated with engagement
in your organisation and a solution to address the problems that are hindering it.HDFC BANK
use surveys to measure the levels of engagement and the factors associated with it. They provide
a foundation to allow organisations to develop and implement engagement strategies, through
analysing and assessing the information collected, and then taking action by implementing
strategies .

1.Top management active support:

Employees must feel that top management are supporting the survey and taking it
seriously, for the reason that if they don’t feel senior management are taking it seriously then they
won’t. So top management supports employees to make them feel important.

2.Alignment with business strategy:

The questions must be aligned with the with the business objectives, for example if innovation is
a prime aspect of the organisation or if they want to tackle absenteeism.

3.Involve employees in the design:

It is important that the survey includes subjects that are of importance to the employees. Bank
always involves every employee in work.

4.Encourage everyone to take part:

It is important that all employees that are involved in the survey are encouraged to participate, as
the organisation will get a broader perspective. So bank take initiative to encourage employees

5.Ensure confidentiality:
Confidentially is crucial if you want employees to be honest in the survey. They want to be sure
that their answers cannot be traced back. Bank helps employees to increase confidenc
DATA INTERPRETATION AND
ANALYSIS
Q1. Do you know what is expected from you at work?

a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree

e)Not Applicable

Analysis:

Q1
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0% 0%

32%

68%

68% of the sample agreed to the fact that they are aware about the work which they have to perform
while 32% are strongly agree on this fact.
Q2 At work, do you have the opportunity to do what you do best every day?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e)Not Applicable

Analysis:

Q2
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0%

29% 18%

53%

Majority (53%) of the employees get the opportunity to do best of their work everyday while 28%
of them disagreed on this and 18% of them strongly agreed.
Q3 In the last three months, have you received recognition or praise for doing good work?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e)Not Applicable

Analysis:

Q3
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0%

5% 11%

84%

84% of the employees have received recognition or praise in the last three months for doing good
work while 11% of the employees are highly satisfied with recognition in their organization and
5% of them has not received any praise in the last 3 months.
Q4 Is there someone at work who encourages your development?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q4
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0%

8% 8%

84%

Generally people feel sense of belongingness when someone is their at their workplace to support
them and 84% of the employees agreed on this fact while 8% have strongly agreed and the other
8% disagreed.
Q5 At work, do your opinions seem to count?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e)Not Applicable

Analysis:

Q5
Strongly Agree Agree Disagree Strongly Disagree Not Applicable
3% 0% 0%

10%

87%

Employees participation in decision making is again a criteria of measuring employee

engagement. 87% of the employees have agreed that their decision seems to count, 10% strongly
agreed to this and only 3% have disagreed.
Q6 Are your associates (fellow employees) committed to doing quality work?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q6
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0%

11% 5% 5%

79%

79% of the sample agreed that their fellow employees are committed to do quality work while
11% have disagreed on this fact. 5% of them have chosen strongly on this and the other 5% has
given no comments on this.
Q7 In the last year, have you had opportunities at work to learn and grow?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e)Not Applicable

Analysis:

Q7
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

5% 0%
8% 21%

66%

Learning and Development is one of the most important aspect to find out the employee
engagement in the organization. 66% have agreed that they get the opportunity to learn and grow
in the organization while 21% of them have strongly agreed on it. 8% of the employee have not
given any reply and 5% were disagree.
Q8 Are the pay and benefits in your organization comparable to similar companies?
a)Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q8
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 3%

16%
39%

42%

42% of the sample is satisfied with pay and packages of their organization while 32% are
highly satisfied with it. 16% disagree on the competitive pay and benefit packages.
Q9 Are job promotions in this organization fair and objective?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q9
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

3% 3%

13% 31%

50%

Half the percentage (50%) of the employees believe that the promotions are done objectively, 31%
strongly agree to the fairness of the same while 13% doubt the fairness and objectivity of the
process.
Q10. Are organization policies clearly communicated in the organization?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q10
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0%

11%
42%

47%

47% of the sample has agreed to be clear on the policies that prevail in their respective
organizations. A good proportion of 42% strongly agreed on the clarity while only 11% reported
ambiguity on the policies.
Q11. Do you see yourself continuing to work for this organization two years from now?
a) Strongly Agree b) Agree c) Disagree d) Strongly Disagree
e) Not Applicable

Analysis:

Q11
Strongly Agree Agree Disagree Strongly Disagree Not Applicable

0% 0%

26% 24%

50%

A majority of 50% has agreed to continue to serve in the same organization for next two years,
24% are very much willing to do the same whereas a stricking 26% of the employees are those
who are on the verge to leave the organization since they are not even commiting for next two
years.
 FINDINGS
To engage the workforce, most of the organization surveyed periodical
recognise employees and provides flexible working hours.

Nowadays employees are involved in decision making in the organization and

majority of the employees agreed on this fact.

Most of the organizations allow their employees to participate in performance

appraisals and to set their own Key Performance Areas.

Compensation & Benefit programs are observed as the most effective rewards
scheme

For team building companies generally do small team recreational activities and
social activities.

Majority of the sample are loyal towards their organization and they also
recommend their friends and relatives to join the organization.

Stress management, Retirement plans and Work life balance surprisingly seem
to be of least effective engagement strategies according to the employees.

Majority of the organizations agreed that the engagement strategies of their

organization help in retaining the employees in the organization.

Majority has observed 5-10% of reduced attrition rate due to the implementation
of engagement strategies in the organizations.
CONCLUSION
 CONCLUSIONS

Employee retention continues to remain a top priority at many organizations and

one that companies increasingly view as a driver of business strategy. Business-
critical knowledge can walk out the door when an employee leaves the company.
While employee retention figures have long been used by companies as a
measure of their performance in developing an effective organization, this view
of employee retention is not only outdated, but these figures may not be
comprehensive enough to truly determine the organization's effectiveness.
The concept of employee retention is more complex than simply evaluating
employee turnover from one year to the next. These figures of employee retention
can be somewhat misleading — it isn't necessarily the number of employees an
organization loses, it's the number of top-performing employees that leave the
company that should be of concern. For example, management is one of the key
reasons employees decide to stay or leave an organization. If there is high
turnover among the management ranks, employees may also feel unstable in this
ever-changing environment. Yet, on the other hand, it may not be the best
business strategy to retain a manager that is disliked by employees.
The business strategy of employee retention actually lies with employee
engagement; retention is an outcome of engagement. What most organizations
fail to realize is that employee engagement is the biggest retention factor they
have control over. Engaged employees not only stay longer with the organization,
they are more productive, more conscientious, make fewer errors, and take better
care of customers. The business strategy of employee retention must incorporate
methods that achieve a high level of employee engagement among the
organization's top performers, not necessarily the entire workforce.

If effective engagement practices are in place, the organizations can curb the
growing attrition rates especially in IT and Banking sectors. Thus the research
study proves the significance of engagement activities as a part of retention
strategy in an organization.
SUGGESTIONS

SUGGESTIONS
As contrary to what managers believe that decision making is the most effective
tool, the employees still prefer rewards and recognition. The Managers should
focus on the rewards and recognition schemes in their organization.

Practically people don’t give much importance to stress management programs,

work life balance and retirement plans so there is scope of improvement in this
area.

To increase employee engagement, the organizations should :

Provide variety: Tedious, repetitive tasks can cause burn out and boredom over
time. If the job requires repetitive tasks, look for ways to introduce variety by
rotating duties, areas of responsibility, delivery of service etc.

Conduct periodic meetings with employees to communicate good news,

challenges and easy-to-understand company financial information. Managers and
supervisors should be comfortable communicating with their staff, and able to
give and receive constructive feedback.

Indulge in employee deployment if he feels he is not on the right job. Provide an

open environment.

Communicate openly and clearly about what's expected of employees at every

level - your vision, priorities, success measures, etc.

Get to know employees' interests, goals, stressors, etc. Show an interest in their
well-being and do what it takes enable them to feel more fulfilled and better
balanced in work and life.

Celebrate individual, team and organizational successes. Catch employees doing

something right, and say "Thank you."

As we have got a very good response from employees so the companies should
have the engagement strategies to retain the employees
BIBLIOGRAPHY

BIBLIOGRAPHY
 1.BOOKS AUTHORS

Marketing Management Philip Kotler

(10th Edition)
Marketing Management V.S.
(3rd Edition) Ramaswamy

Research Methodology C.R.Kothary

(2nd Edition)
Research Methodology S.P.
Kasande

2. NEWS PAPERS

Times of India
Financial Express

3. WEBSITES

www.hdfcbank.com
 ANNEXURES

QUESTIONNAIRE
Place…………………

Name…………………………

Date …………………

Designation…………………

1.Do you know what is expected from you at work?

a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

2.At work, do you have the opportunity to do what you do best every day?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

3.In the last three months, have you received recognition or praise for doing good
work?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

4.Is there someone at work who encourages your development?

a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

5.At work, do your opinions seem to count?

A)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

6.Are your associates (fellow employees) committed to doing quality work?

a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

7.In the last year, have you had opportunities at work to learn and grow?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

8.Are the pay and benefits in your organization comparable to similar companies?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable
 9.Are job promotions in this organization fair and objective?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

10.Are organization policies clearly communicated in the organization?

a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

11.Do you see yourself continuing to work for this organization two years from
now?
a)Strongly Agree b) Agree c) Disagree
d) Strongly Disagree e) Not Applicable

Yours Faithfully,

( Signature)

“THANK YOU”