Syudy of Human Resource Management

8/12/2019 Syudy of Human Resource Management

1/39

1

Study of Human Resource Management

Of HDFC Bank M.com Part-1

CHAPTER 1


2/39

2



Objective:

To understand various approaches to Human resourceManagement in Banks

Classify the networking and processing concepts Identify the various techniques adapted by Human resource

management

Study of Human resource department in banks

Scope:

It has given me an opportunity for research

Methodology :

The data collected is wholly through net and books.


3/39

3



HISTORY OF BANKING

Banking is nearly as old as civilization. The history of banking could be said to have

started with the appearance of money. The first record of minted metal coins was in

Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten appeared

in1661, in Sweden. Cheques and printed paper money appeared in the 1700s and 1800s, with

many banks created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade

and industry, and with the level of political confidence and stability. The ancient Romans

developed an advanced banking system to serve their vast trade network, which extended

throughout Europe, Asia and Africa. Modern banking began in Venice. The word bank comes

from the Italian word banco, meaning bench, because moneylenders worked on benches in

market places. The bank of Venice was established in 1171 to help the government raise finance

for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their

safes in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with

the metal itself staying under lock and key. The goldsmith realized that they could lend out some

of the gold and silver that they had and charge interest, as not all of the merchants would ask for

the gold and silver back at the same time. Eventually, instead of charging the merchants, the

goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government

to finance the war of Augsburg against France. By 1709, goldsmith were using bank of England

notes of their own receipts. New technology transformed the banking industry in the 1900s

round the world, banks merged into larger and fewer groups and expanded into other country.


4/39

4



BANKING STRUCTURE IN INDIAIn todays dynamic world banks are inevitable for the development of a country.Banks play a

pivotal role in enhancing each and every sector. They have helped bring a draw of development

on the worlds horizon and developing country like India is no exception.

Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for moving

finance from those who have surplus money to (however temporarily) those who have deficit. In

everyday branch terms the banks channel funds from depositors whose accounts are in credit to

borrowers who are in debit.

Without the intermediary of the banks both their depositors and their borrowers would have to

contact each other directly. This can and does happen of course. This is what has lead to the very

foundation of financial institution like banks.

Before few decades there existed some influential people who used to land money.But a

substantially high rate of interest was charged which made borrowing of money out of the reach

of the majority of the people so there arose a need for a financial intermediate.

The Bank have developed their roles to such an extent that a direct contact between the

depositors and borrowers in now known as disintermediation.

Banking industry has always revolved around the traditional function of taking deposits, money

transfer and making advances. Those three are closely related to each other, the objective being

to lend money, which is the profitable activity of the three. Taking deposits generates funds forlending and money transfer services are necessary for the attention of deposits. The Bank have

introduced progressively more sophisticated versions of these services and have diversified

introduction in numerable areas of activity not directly relating to this traditional trinity


5/39

5



CHAPTER 2


6/39

6



INTRODUCTION

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The

bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered

office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record in

India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has

developed significant expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities. With its experience in the

financial markets, a strong market reputation, large shareholder base and unique consumer

franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank'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.


7/39

7



FOUNDER OF HDFC BANK

Born on March 10, 1911 in a banking family at Surat, Mr. Hasmukh Thakordas Parekh, fondly

referred to as Hasmukhbhai was the doyen of the Indian housing and financial sector.

A graduate in Economics from Mumbai, Mr. Parekh also pursued a BSc. degree in Banking and

Finance from theLondon School of Economics.

After returning to India in 1936, Mr. Parekh began his financial career with a leading

stockbroking firm,Harkisandass Lukhmidass. Simultaneously, he was a lecturer in Economics at

the St. Xavier's College in Mumbai for about three years. He considered his two-decade long

stint at the broking firm valuable, as it not only gave him his most basic lessons in the business

but also immensely contributed to his personal growth.

During this period Mr. Parekh also continued to study and write on different aspects of the

economy and economic policy, money and banking, and also participated in public discussions.

Driven by deep interest in investment banking, he decided to move on to his next major

assignment. In 1956, Mr. Parekh joined the newly set up development finance

institutionIndustrial Credit and Investment Corporation of India Limited(ICICI). Under his

leadership ICICI grew impressively to gain acceptance of the Indian business community,

recognition of Government and even became a show piece for the World Bank.

For decades he had been stressing the need for a financial corporation specializing in providing

long term finance for ownership housing. Thus even at the age of 66, when most people think of

retirement, Mr. Parekh was determined to set up his most ambitious enterprise.

His lifelong dream of helping Indians own their home, as he had seen abroad during his student

days, led to the formation of the Housing Development Finance Corporation Limited (HDFC) in

1977. It was the first-of-its-kind in India. It is under Mr. Parekhsleadership and direction that

HDFC grew manifold while being strongly rooted in the principles of integrity, transparency and

professionalism. Soon HDFC became a major role model not only for the country but for the

entire Asian region.


8/39

8



In keeping with his zeal for promoting new ventures, in 1983, Mr. Parekh promoted the first

private sector oil exploration company in India,Hindustan Oil Exploration Company Limited.

He also set up Gujarat Rural Housing Finance Corporation Limited in 1986.

Mr. Parekhs love for writing blossomed right from his school days. In addition to being a

regular contributor to the media with over 200 published articles to his credit on a variety of

subjects such as industry, economic policy, capital market, development banking, credit policy,

etc., he was the author of several books. He authored The Bombay Money Market, a novel book

detailing the intricate workings of the money market in lndia. He also chronicled his

considerable experience as a development banker in his book, The Story of a Development Bank

(ICICI: 1955-1979). Some of his other books include The Future of Joint-Stock Enterprise in

India, India and Regional Development, Management of Industryin India and The IndianCapital

Market - Past, Present & Future. Also, his writings in Gujarati, Hirane Patroand Hirane

Vadhu Patroare considered works of great importance in Gujarati literature.

His wisdom and warmth drew people from all walks of life to him for advice, guidance and

inspiration. Mr. Parekh was a man of few words, and believed that strong views need not be

expressed in strong words. He had a keen eye for talent and nurtured it by providing direction

and ample learning opportunities.

Known for his humility, affection and concern for fellowmen, Mr. Parekh was associated with

several philanthropic causes and welfare organizations.

In 1986, he was one of the founders of the Centre for Advancement of Philanthropy and served

as its Chairman since its inception until his retirement in 1993. His concern and love for the city

of Mumbai (erstwhileBombay) led him to form the Bombay Community Public Trust in 1991.

This venture was designed specifically to address the needs of disadvantaged citizens in the city

of Mumbai. He took the initiative to finance Mumbais first public toilet by any corporate house

Sulabh Shauchalaya. Additionally, Mr. Parekh served as trustee of the Sameeksha Trust,

Saurashtra Trust, Kasturba Gandhi National Memorial Trust, The India Foundation, The lndia


9/39

9



Heritage Trust, The Chakallas Puraskar Trustand also served as the President of theSocial

Service League.

Some of Mr. H.T. Parekhs major achievements are:

The James Taylor prize for standing 1st in B.A. (Economics) from the University of Mumbai. Honorary Fellow of theLondon School of Economics and Political Science, U.K. Padma Bhushanby the Government of India for his contribution to the field of economic

activities in 1992.

The thoughts and dreams of a legend likeMr. H.T. Parekh live on forever, changing human lives

for the better.

Deepak Parekh,the Chairman ofHDFC Bank,serves as a member on the IIHS board.

Education:

Born in 1944, Deepak did his Chartered Accountancy from the Institute of Chartered

Accountants in England and Wales (ICAEW).

Deepak began his career in 1970 withErnst and Young Management Consultancy Services in

New York and worked with Grindlays Bank and Chase Manhattan Bank in Mumbai before

joining HDFC in 1978 a year after its inception,as deputy general manager. He went on to

become its chairman in 1993. Deepak has steered HDFC to its current position as not just the

market leader in housing finance but also as a financial conglomerate with a presence in banking,

asset management, life insurance, general insurance and a real estate venture fund.

Besides the HDFC group companies, Deepak is on the board of several leading corporations

across diverse sectors. He is the non-executive chairman ofGlaxo Smithkline

Pharmaceuticals,Infrastructure Development Finance Company(IDFC), Lafarge India and

Siemens India Ltd. He is also on the boards ofCastrol lndia Limited,Hindustan Unilever

Limited, Mahindra & Mahindra Limited, Indian Hotels Company Limited among others and

international boards of Singapore Telecommunications Ltd. (Singapore) andWNS Global

Services Pvt. Ltd. (USA). Deepak is also nominated by the Civil Aviation Ministry to the Board

of Airports Authority of India.
http://en.wikipedia.org/wiki/London_School_of_Economicshttp://en.wikipedia.org/wiki/Padma_Bhushanhttp://www.hdfcbank.com/personal/default.htmhttp://www.ey.com/https://www.chase.com/http://www.gsk-india.com/http://www.gsk-india.com/http://www.idfc.com/http://www.castrol.com/castrol/castrolhomepage.do?categoryId=3230http://www.hul.co.in/http://www.hul.co.in/http://info.singtel.com/http://www.wns.com/http://www.wns.com/http://www.wns.com/http://www.wns.com/http://info.singtel.com/http://www.hul.co.in/http://www.hul.co.in/http://www.castrol.com/castrol/castrolhomepage.do?categoryId=3230http://www.idfc.com/http://www.gsk-india.com/http://www.gsk-india.com/https://www.chase.com/http://www.ey.com/http://www.hdfcbank.com/personal/default.htmhttp://en.wikipedia.org/wiki/Padma_Bhushanhttp://en.wikipedia.org/wiki/London_School_of_Economics


10/39

10



In addition to being known for his views seeking standardisation and transparency in the real

estate sector, Deepak has also acted as an advisor to the government during crisis situations like

UTI in the late 1990s and more recently, Satyam, to recommend measures for sustaining investor

confidence.

Deepak is an active member of various high-powered economic groups, government-appointed

advisory committees and task forces which include financial services, capital markets and

infrastructure sector reforms. Some of these include heading the Rajiv Awas Yojna, a committee

to suggest ways of making Indian cities slum-free, membership of a high level committee to stem

BSNLs deteriorating financial health and bring it up to competitive standards, chairmanship of

the New Pension Scheme Expert Group, chairmanship of the High Level Task Force on

Affordable Housing, membership of the Investment Commission for greater FDI inflows intoIndia, membership of Comptroller and Auditor General of India (C&AG)s Audit Advisory

Board, among others.

AWARDS

As in the past years, awards and recognition were conferred on your Bank by leading domestic

and international organizations during the fiscal year ended March 31, 2011.

Some of them are :

Asian Banker 2011

Strongest Bank in the Asia Pacific region

Bloomberg UTVs Financial Leadership Awards 2011

Best Bank Outlook Money 2010 Awards


11/39

11



Best Bank Businessworld Best Bank Awards 2010

Best Bank (Large) NDTV Business Leadership Awards 2010

Best Private Sector Bank IDRBT Technology 2009 Awards

Best IT Infrastructure Best use of IT within the Bank

BUSINESS STRATEGY

I. Increasing market share in Indias expanding bankingII. Delivering high quality customer service

III. Maintaining current high standards for asset quality through disciplined credit risk

management

IV. Develop innovative products and services that attract targeted customers and address

inefficiencies in the Indian financial sector.


12/39

12



HUMAN RESOURCE DEPARTMENT

Human Resource Management function that helps managers recruit, select, train and develop

members for an organization. Obviously, HRM is concerned with the peoples dimension in

organizations.

Work force of an Organization is one of the most important inputs of components. It is said that

people are our single most important assets. Because of the unique importance of HUMAN

RESOURCE and its complexity due to ever changing psychology, behavior and attitudes of men

and women at work, in all business concerns, there is one common element. I.e. Human

personnel function, i.e., manpower management function is becoming increasingly specialized.

The personnel function or system can be broadly defined as the management of people at work-

management of managers and management of workers. Personnel function is particularly

interested in personnel relationship and interaction of employees human relations.

In a sense, management is personnel administration. Management is the development of people,

and not mere direction of material resources. Human capital is the greatest asset of a business

enterprise. The essential ingredient of management is the leadership and direction of people.

Each manager of people has to be his own personnel man. Personnel management is notsomething you really turn over to personnel department staff.

Responsibilities of Human Resource Department.

HRD maintain daily attendance record through branch manager via E-mail.

Take decisions for approval regarding leave notes. He takes the decision related to the recruitment, selection and training of the candidates. He

talks to the consultant related to the recruitment of the qualified candidates. He also does

screening of the candidates, shortlist the candidate and takes the first round of the interview.


13/39

13



He maintains the database of the candidates to come for an interview. He also maintainspersonal file of each employee. He also completes the joining formalities of each new

employee.

They are taking surprising visit in every branch and collect information about employees.

He is responsible for the monthly salary of the employees as per their attendants and passingto the Branch Manager.

Human Resource planning

This is handled by doing the planning at the beginning of every year. At the end of the year, theHuman Resource department from each Branch receives the requirement for the person for

whole year. Then the planning of recruitment and training is done by training manager and

recruiting manager which is approved from Head of HR Department.

Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the industry.

As we know it is very important for an industrial concerns to have efficient and effective

personnel with right quality and at right time and at right place available whenever they are

needed. Every organization needs employee time by time because of promotion or retirement of

an employee. For this purpose an organization need to search for the right candidate. And so it

needs to encourage this type of right candidates whenever they require.

Sources of Recruitment

Personal data of candidates and data bank maintain by the HR DepartmentCampus Recruitment.Companys own website.Placement consultants.Advertisement in the news papers like Times of India, Gujarat Samachar.Employee reference.


14/39

14



Recruitment Process

Selection

Selection is the process of collecting and evaluating information about an individual in

order to extend an offer of employment. Such employment could be either a first position

for a new employee or a differ high ranking position for a current employee according to

his knowledge and experience. The selection process is being done under normal legal

and environmental constraints. In today's competitive business environment, managers

are keenly looking forward to increasing the performance of their employees. Increasing

the performance will automatically increase the competitive advantage of other firms.

The appropriate selection of the employee is very important in an organization especiallyin a bank. Because on and organization like bank the main and the important element is

customers so without customers faith the cannot exist so we need to select the correct and

the apt employee for the respective position and need to give train nag to improve their

skills. If the selection of the employee is good and the employee is apt for the position

the employee as well as the company can come up with good ideas and schemes through

which they can attract more customers their by they can extend the name of the

organization to a better level. So in order to increase the performance of the employee

many methods will introduce like customer service, employee involvement programmed

and other methods like design of particular jobs which will enhance the relationship

between the manager and employee in which employee can involve much and can put

forward their abilities for all these criteria's need to select a proper employee, for that

selection is the first and the foremost thing in the selection of the appropriate employee

.The important of selection is very important in the growth of the organization. It is also

the basis for the development of programmed that increase the productivity of the

employee, if the employee doesn't have the appropriate talents for the job to which they

are assigned, programmes to Improve will be unsuccessful. There are different steps

involved in the selection process of HDFC Bank they are stated below:-


15/39

15



Finding the need of manpower in the company and advertising for the position inmedia, journals and newspapers.

Human resource department of the bank should be responsible for mentioning theskills and knowledge required for the post.

Giving an interview call is also human resourse departments responsibility aftermonitoring the application received and sort the apt candidate who posses all the

skills and qualification required for the job

Interview is conducted in four steps, A test will be conducted to all selectedcandidates to check the technical knowledge about the work they are going to

perform, then a HR interview will be conducted to know more about the candidate

and check whether the candidate is apt to the organization, then a group discussion

will be there to check the behavior and commanding skill of the candidate, a final

round interview will be conducted by the head of al the departments regarding the

functions he is going to perform in the bank.

Selection is the process of taking individuals out of the pool of job applicants with requisitequalifications and competence to fill jobs in the organization. It is define as the process ofdifferentiating between applicants in order to identify and hire those with a greater likelihood

of success in a job.

Selection is based on probation base, they are taking experienced person for 6 monthsprobation and for fresher the probation period is 1 year.

While the selection of the senior level post, is taken by head office at Mumbai.


16/39

16



INVESTMENT IN TRAINING AND DEVELOPMENT

Training and development has traditionally been a functional division of the personnel or

human resource department concerned with carrying out the identification of training and

developmental needs. Planning and designing training. Implementing it and finally

evaluating it. Training and development is to be regarded as the strategically activity the

purpose of training and development includes. To improve the present and future well

being of the organization. What oppurtunities are afforded by the environment, what are

the strength and weakness of the organization, analysis of current skill levels available

within and external to the organization? Thus we can give the employee training in order

to increase the capability and ability of the employee and thus their by we can improve

the over all change in the organ insertion and their by develops the employee to come up

with new ideas which helps in promoting the company to a higher level. When cross

checked with the training and development programmes at HDFC bank they conduct

regular development programs to their employees to make them expose to the current

economical status and improving the skills of the employees to face the challenge. The

training of HDFC mainly concentrated on some special criteria's like to concentrate on

the performance improvement, communication, computer development skills, customerservice, diversity, ethics, human relations, quality improvement and safety. In this the

important thing is customer service the main element of an organization is customer so

and employer should be more oriented on the customers have to respect them their needs

and queries so its very important for the employer to keep good training and their by the

management can increase the good will of the organization

Training aims at increasing the aptitudes, skills and abilities of workers to perform specificjob. It makes employees more effective and skillful. In present dynamic world of business

training is more important there is an ever present need for training men. So that new and

changed techniques may be adopted. A new and changed technique may be taken as an

advantages and improvement affected in the old methods.


17/39

17



Training is learning experience that seeks relatively permanent change in an individual thatwill improve his/her ability to perform on the job.

They provide on the job training to their employees in the branch as they select theseemployees for selling various products of bank by direct marketing. Whenever they select

new candidates for any post, they use to give them on the job work.

In case of sales persons to distribute their various products, in the beginning the person has towork under the observation of his senior then the have to go in market to have their own

experience.

The time for training program for the candidate is depends up on the relevant position of hiswork area. They also provide training related to customer care and communication.

Performance Appraisal

An organizations goals can be achieve only when people put in their best efforts. Performance appraisal may be understood as the assessment of an individualsperformance

in a systematic way. It is define as the systematic evaluation of the individual with respect to

his/her performance on the job and his/her potential for development.

To appraise the performance of the employee they have developed a credit system on thebasis of the given target to the employee. After appraising the performance of the employee

they put the grade of each employee in the following grade criteria.

PROFILE

CHECK

SCREENING INTREVIEWSHORT LISTAPPLICANT

POOL


18/39

18



Employee Remuneration and Incentive Payments

Remuneration is the compensation an employee receives in return for his/her contribution tothe organization. Remuneration occupies an important place in the life of an employee.

At HDFC, remuneration of an employee compriseswages and salary, incentives.

Wages and Salary

A part from various incentives and benefits, the personnel are compensated only in terms ofwages and salaries. A proper compensation in terms of this is necessary for motivation

employees for their continuous improved performance. For all this, it is required that wages

and salaries are provided well by organization.

Wages and salary refers to the establishment and implementation of sound policies andpractices of employees compensation. A wage and salary is the remuneration paid for the

service of labor in production periodically to an employee. The bank is in service industry so

the salary is given on monthly basis. They use to hire certain salesman on commission base

and they are provided their salaries on commission base. While other permanent staff are

being given monthly salaries. As HDFC bank is reputed bank in market the pay scale are

asper the standard.

Sales executives (coax) are being given salary of 6000 to 8000 per month. While salesofficers salary ranges from 15000 to 18000 per month. HDFC bank is also giving attractive

incentives as per the target. The salary of branch manager is around 35000 per month.


19/39

19



Incentive

In HDFC, employees get incentives on the basis of the target given to each employee and their

area of work. They have developed the incentive structure for the employees on the basis ofpoint system. All the employees get the incentive in the form cash reward.

Employees benefit

The employees of HDFC automatically become HDFC bank salary account Holders with special

benefit and privileges and receive instant salary credit. The benefit include international debit

card, corporate card with individual liability (CCIL), access to phone banking and internet

banking, demat accounts, and host of other services to complement their savings account. Here

are some of the features of HDFC Banks salary account.

Motivation

Motivation is willingness to do something conditioned by this actions ability to satisfy some

need. Motivation is given by the responsible person, like branch manager or team manager for

better performance in the department.

As employee is the back bone of the organization the company should always make sure about

the commitment of the employee. motivation and appraisal will decrease the gap between the

employee and the managemt reward programmes will increase the confidence of the employee

and make them more committed towards the organization .the managers can yield more

productive and creative results by motivating their employee by offering financial enrichment

,incentives the company can motivate the employee for achieving its goals ,the managers can

also motivate the employee by removing organizational barriers by giving their employees

respected loyalty. HDFC bank rewards the employee with reward points, incentives or gift to

motivate the employee to achieve more goals. The bank will give warnings and try to improve

the performance of those employees whose performance is bad to avoid quick terminations.


20/39

20



Disputes and their resolution

Disputes are common in organization. In practice, disputes mainly relate to the target only

because if any employee is not achieving target he/she will not eligible for incentive which

creates frustration among them. Every employee is free to talk to the head of the particular

department if they have any problem related to the job. Firstly, the problem is solved by the head

of the particular department and if the problem does not solved by the head of that department

then it is addressed to the HR Manager.

Companies approach to Human Resource Management

HDFC, with current employee strength of 66.076 employs and managers different kind of

people all around the world. By doing so the company maintains a balanced and well

rounded employment status. This gives the company advantage to face all kinds of

situations an issues. HDFC bank gives foremost priority to its employees and make

certain their rights are preserved. Taking proper approach to HRM the company will soon

be best in personnel among the competitors.

Employee Health, Welfare and Well Being

Your Bank has its people as one of its stated values. Keeping in line with this we ensure equal

opportunities, living wages, social security and well being of our employees. Employee

development is integral to the bank, which is achieved through a range of training and

developmental program and activities.


21/39

21



Employee Participation

The Bank encourages employee participation at all levels to strengthen its corporate social

responsibility initiatives as well as inculcate a stronger sense of ownership amongst its

employees of each of these initiatives.

Employee Payroll

Giving Employees are provided with an easy and convenient system to donate through the

employee payroll giving. The donor enjoys the flexibility of choice with regards to the amount

that they wish to donate and the cause that they wish to support. The Bank adds a matching

amount to the contribution to endorse its support to the cause chosen by the employees.

Employee Volunteering

Employees are an integral part of the Banks social initiatives, they are encouraged to participate

in philanthropy work involving their time and skills in many possible ways. Employees canchoose NGO partners they would like to work with and the manner in which they would like to

dedicate their time and skill. Your Banks employees have increasingly participated in summer

camps; conducted english-speaking classes; collected paper waste, assisted in academic support

programs, donated blood and so on.

With its focus on creating self-reliance and promoting education in the interiors of the country,

your Bank has been able to make meaningful differences a small group of individuals through its

many programs. Going forward we would like to look at CSR not as a stand-alone function but

as an ideology that is interwoven into every aspect of your Banks operations.


22/39

22



WHAT IS SWOT ANALYSIS OF HDFC BANK ?

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,Opportunities, and Threats involved in a project or in a business venture. It involves specifyingthe objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieving that objective. The technique is credited to Albert

Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data fromFortune 500 companies.

Strengths

HDFC bank is the second largest private banking sector in India having 2,201 branches and7,110 ATMs

HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customersthrough Telephone banking

The banks ATM card is compatible with all domestic and international Visa/Master card, VisaElectron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be

the most preferred card for shopping and online transactions

HDFC bank has the high degree of customer satisfaction when compared to other private banks The attrition rate in HDFC is low and it is one of the best places to work in private banking

sector

HDFC has lots of awards and recognition, it has received Best Bank award from variousfinancial rating institutions like Dun and Bradstreet, Financial express, Euro money awards for

excellence, Finance Asia country awards etc

HDFC has good financial advisors in terms of guiding customers towards right investments


23/39

23



Weakness

HDFC bank doesnt have strong presence in Rural areas, where as ICICI bank its directcompetitor is expanding in rural market

HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals interms of banking services.

HDFC lacks in aggressive marketing strategies like ICICI The bank focuses mostly on high end clients Some of the banks product categories lack in performance and doesnt have reach in the market The share prices of HDFC are often fluctuating causing uncertainty for the investors

Opportunities

HDFC bank has better asset quality parameters over government banks, hence the profit growthis likely to increase

The companies in large and SME are growing at very fast pace. HDFC has good reputation interms of maintaining corporate salary accounts

HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high whencompared to government banks

HDFC has very good opportunities in abroad Greater scope for acquisitions and strategic alliances due to strong financial position

Threats

HDFCs nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slightvariation its not a good sign for the financial health of the bank

The non banking financial companies and new age banks are increasing in India The HDFC is not able to expand its market share as ICICI imposes major threat The government banks are trying to modernize to compete with private banks RBI has opened up to 74% for foreign banks to invest in Indian market


24/39

24



MISSION

I. World Class Indian Bank

II. Benchmarking against international standards.

III. To build sound customer franchises across distinct businessesIV. 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 Banks business philosophy

is based on four core values such as:-

1. Operational excellence.

2. Customer Focus.

3. Product leadership.

4. 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.


25/39

25



FUNCTIONAL AREAS OF HUMAN RESOURCE IN

HDFC BANK

The main functional areas or activities of human resource in HSBC bank are as follows:-

Appropriate selection and identification of over all skills profile Investment in training and development Motivation and appraisal

For implanting a resource strategy we must be translate the strategy in to practical action.

For that planning is an impotent criteria that to be organized logically.

HUMAN RESOURCE MANAGEMENT MODELS

Two models of HRM are defined by store (1989) as Hard and Soft model. Hard model insist on

meeting the requirement with work force .soft model is considered as more employee oriented

and give room to the employee to grow within the organization.HSBC bank implements both

models of HRM and varies with the situation.

HARD MODEL

Hard model also referred as matching model or best fit approach is a method of extracting the

maximum potentials from the employee for the benefit of the company. Here the employees are

considered as a tool of the organization to achieve its goals.HSBC bank doesn't use hard model

often but their cashing sections were the functions are a routine.

SOFT MODEL

Soft model gives foremost consideration to the employee and will try to develop the skills of the

employee for the betterment of the organization. here the employee is motivated to achieve the

goals of the organization .soft model is very relevant in the industries which requires innovative


26/39

26



and creative works. HDFC mainly follows this model of HRM as it considers for its employees

and preserve their rights to make them grow with the company and intact increases the

productivity of the organization.

HUMAN RESOURSE PLANNING AND DEVELOPMENT

METHODS

Human resource planning and development is always important for the effective run of the

organidsation.the forecast of human resource department always play a major role in planning

and development. The different planning and development methods of human resource are stated

below:-

Workforce planning

Workforce planning is important in an organization as indicates the need of staffs required for a

particular task. Human resource department can prepare a chart indicating the time when the

work should be finished and the amount of manpower required for the task .finding out who is

the right person for the task will increase the productivity of the organization.

TRAINING AND DEVELOPMENT

An employee's performance can be affected by various reasons such as personal and physical

issues. So rejuvenating them by giving development programmes can increase their efficiency.

frequent training programmes should be conducted for the employees to make their work

interesting or easy to them. HDFC bank have frequent development programmes to improve the

performance of the employees rather than terminating them on their beginning stage due to poor

performance. As the company relies on soft model of harm, it tries to develop the skills of

current employees to deliver a better service to their clients.


27/39

27



RECRUITING LONG TERM EMPLOYEES

A company or organiosation always invest more on their recruitment and training

programmes.so if the company can recruit employees for a longer term or sustaining the current

employees can decrease their expense on this. Experience always reflect in the performance of

the company. HDFC recruit new employees for a long term so that the employee get skilled and

experienced with the organization and can deliver a better performance to achieve the goals .the

human resource team should monitor the status of the employee and should give proper guidance

if the employee is facing any problem rather than making the employee leave the job. Human

resource department should make sure that the newly recruitment employees are looking for a

stable position in the firm.

OBJECTIVES OF TRAINING AND DEVELOPMENT

Aims and objectives are much important when it deals with the training and development as it

increases the efficiency of the employee. Objectives are an important tool to analyses the

improvement, development of the employee and can evaluate their performance. Objectives can

be attained by both the company and the staff when it goes through the development

programmes.implemention of these objectives will give the organization new strategy and an

improved result. The main objectives are stated below:-

Individual objective

Individual objectives visions for the improvement of skills of the employee. By training the

employee regarding the new technological inventions and changes in the market will enable the

company to expand its business. The employee by developing the skills and knowledge caneasily achieve the tasks and will be beneficial to the organization.

HDFC bank conducts frequent development programmes to the staffs to make them more market

oriented and to let them know bout the latest changes in technology.


28/39

28



Departmental objective

Human resource plays a vital role in the efficient run of all departments as it recruits and trains

the right employee for the position. Developing the knowledge about the department employee

will have a clear idea about the department works and reporting person. The employee should be

known with the risks involved in the department and the human resource should train them in

such away that he can challenge all the risks and produce a better result for the department.

Benefit to the company

Companies become more beneficial if the employees are efficient. So by training them and

developing their skills company can aim for bigger goals. Giving confidence to the employeeand making the employee more committed to the organization, it can result in the performance of

the company. Developing a healthy competence among the employees company can gain more

benefits and can result in good performance.

Benefit to the society

The organization is not only responsible for making an employee a good performer but also to

make him meet the demands of the environment. The environment around him will demand so

much from the operation he is working with. the training should enable to meet all the challenges

he is facing and should face the demands.HDFC bank train the employee in such away they he

will follow all the ethical rules of the society and deliver service as the society demands.

EVALUATING THE PERFORMANCE OF THE EMPLOYEE

Performance evaluation is very important in the organization as it indicates how far the

organization has achieved its target and how it should mentor the employee to challenge more

tasks.HDFC bank is always keen on performance evaluation of the staff to deliver a better

service to its clients. Performance evaluation will help in finding the employee needs and

company can collect views from the employees and can act on to meet the necessary needs. It

gives a feedback on employee's performance. Evaluation will decrease the communication gap


29/39

29



between the high level administration and staffs. organisation can allocate a reward programmed

for the employees to enhance their performance. Performance evaluation widens the opportunity

for the employee to develop and be more beneficiary to the company. Performance evaluation is

a strategic canalization about the employees to improve their potential and making them

beneficial for the company. There are several aspects that should be considered while evaluating

the performance. Those aspects are stated below:-

Achieving targets

The more an employee achieve companies target more the company will lend the support.

Employee who cannot achieve the task will be considered as a burden for the company. So the

organization will monitor every employee's performance and will rate the employee according tothe target he achieves.

Features of work

The company will measure the employee's quality and quantity of work and will evaluate his

performance accordingly. The organizations goodwill always depends on the quality work

performed by the employee. So the company will be very keen on the way the employee does his

work.

Consistency in the performance

Company will always consider consistency of the performance by the employee. A reliable

employee is the one who always shows consistency in his performance.organisation can't take

decision on long term plans if it doesn't find its staffs consistent.

Behavior of the employee

The company will be very keen on the organizational behavior of the employee. Company

monitor how the employees attitude towards supervisors, managers and how employee cop up


30/39

30



with his co worker. With his performance in achieving target company also looks forward for a

good behavior within the organisation.

Accepting company's policy

Employees performance not only comprise on achieving targets but also on how the employee

work adhering the companies policies. The company wants their employees to upheld companies

policies in the work they do.

Cost control

The company always looks for the employees who are cost efficient on completing their tasks.

They prefer staffs that can control the expenditure of operations to achieve the target.

Feedback from colleague

The company will check the employee's feedback from its colleague and that process is referred

as 360 degree feedback. The organization will collect the feedback from co workers, managers

and allthose who are associated with the employee in work. These feedbacks will be considered

while evaluating the performance of the employee.

HDFC bank evaluates the performance of the staff at consistent intervals to improve the

performance of them. They also consider all these aspects while evaluating the employee. They

also adopt some methods for evaluating the performance of the employee. Method is stated

below:-

Challenging their employee

Always set challenges to employees and should measure how the employee is taking up the

challenge. Bank monitor the quality of work and the time consumed to do the task.


31/39

31



Making Specification criteria

HDFC will evaluate the performance of the employee not only with the goals achieved but by

recognizing what the employee is capable of .thee company measures the employee in all aspects

and it will be specific with each employee and try to develop the skill and knowledge in what the

employee is good at. By doing so HDFC gains specialist workers for each department.

Preparing Time period

HDFC sets a particular timeframe for all tasks and will monitor the staff .the company can attain

high performance and save quality time which is very important for the company. Being time

oriented the staffs knows the work and time period for finishing it.

Employee organization making the oriented

HDFC train their employee for not only attaining individual goals but also the organization

goals. The employee won't be concentrating on achieving his goals but will be keen on the

organizations goal. By implementing this HSBC has tied up their employee with the company to

review the target of company in the future.


32/39

32



CASE STUDY OF HRM IN HDFC BANK - October 3rd, 2011

HDFC Bank uses A Comprehensive HR approach to respond to changing resource needs.

Rapid growth in a burgeoning new market should be cause for celebrationunless the

organization that's growing can't keep up with the demands of an expanding workforce or

simplify the management of multiple databases. But Mumbai, India-based HDFC Bank wasn't

about to let that happen. Initially the premier bank in the corporate sector, HDFC Bank began its

expansion into the retail market in 1995. Now, as it adds thousands of new customers each day

and manages dramatic increases in its retail loan portfolio22 percent in 2003 alonethe bank

is facing the challenges that come with rapid success.

"Today's competitive environment means that human resources [HR] must refocus away from

activities that sap value from the organization and instead focus on achieving outcomes that

improve company performance," says C.N. Ram, head of information technology at HDFC

Bank. HDFC was already an established leader in eliminating the inefficiency traditionally

associated with resource planning and management, andbank management knew just what to

do.

"Due to significant growth in the number of our employees over the past few years, we could no

longer handle our human capital management on Microsoft Excel spreadsheets and homegrown

reports," says Ram. In addition, management understood that high growth rates might have

jeopardized product quality, while tension about relative compensation levels between the sales

personnel in the branch and operations could have threatened HDFC Bank's culture.

People are our business ,to The bank decided to implement Oracle Human Resources

applications so that HR planning and tracking could be handled more efficiently. "We had

already compiled large amounts of data about employees who had been with us for awhile, but

we lacked a workable way to store other kinds of information, such as data about family
http://www.managementparadise.com/forums/http://www.managementparadise.com/forums/


33/39

33



members and career paths at HDFC Bank," Ram explains. "We can now capture everything,

which gives senior management better data for performance evaluations and helps them do better

career planning." The solution also allows the bank to compensate on the basis of performance

and provide targeted career development, which raises credibility with employees and helps the

bank attract and retain top candidates . HDFC Bank has also implemented Oracle's applications

for HR analysis and reporting across the enterprise, providing management with the ability to

drill down into performance and cost on an exceedingly granular level. This gives the bank the

flexibility to tailor employee record-keeping while remaining in compliance with employment

laws. Additionally, the automation of actions such as warnings, e-mail notifications, and vacation

hour balances gives thebank a complete profile for each employee. "The comprehensive

reporting capabilities save a lot of staff time and allow us to handle profiles, skill sets, and

training and integrate them with the payroll system," continues Ram.

low cost key to profitability.A big part of the bank's tremendous performance and profitability is

tied to the low cost of operations driven by automation and reduced employee costs. The total

automation of HR processes has reduced errors and introduced a best-practices approach that

encourages employees to perform well and allows them to reap the rewards of their good

performance. "Organization-building and our high commitment to HR management are paying

off," says Ram. "These kinds of changes can be extremely destabilizing if not managed

appropriately, but HDFC Bank has embraced the right formula, and the right applications, for

successful employee management and tracking."

HDFC Bank has also implemented Oracle Balanced Scorecard for its HR function, to evaluate

the effectiveness of its HR management. Through this approach, the bank is able to measure and

improve the effectiveness of support functions and quantify non-financial measures to better

track those functions. It has also transformed the HR department from a purely administrative

organization to one that has significant input in recruitment, development, and strategic planning.

And it's able to track the effect of management systems on shareholder influence, flows, rewards,

and work systems.
http://www.managementparadise.com/forums/http://www.managementparadise.com/forums/


34/39

34



CHAPTER 3


35/39

35



Recommendations

A wide publicity to be given about the organization and its products through various meansof communications to keep growth moments.

More number of training and educational programmes should be provided to the employeesin order to become more efficient.

Developing a learning culture through continous learning process.


36/39

36



CHAPTER 4


37/39

37



Conclusion

As a very promising banking sector HDFC bank is finding its position among the top with

branches extended in India and Overseas the proper implementation of human resource strategy

has took the organization into a new level of customer banking. HDFC always made sure that the

employees are very productive and innovative and are adherent to the bank policies. This helps

the organization to achieve its goals in the long run. Hence in today's competitive business world

HDFC has achieved a major role in their customer's satisfaction through achieving their major

goals in the starting of every business year they will come up with new schemes like investment

banking, financial solution for corporates, trade service, corporate banking, payment and cash

management which will always customer oriented and their by the HDFC bank can increase the

trustworthy of the customers as well as other business entity.


38/39

38



REFRENCES:

BIBLIOGRAPHY

Management AccountingChaudhary & Chopde

Principles of Banking - BandgarResearch MethodologyC.R.Kothari

WIBLOGRAPHY

www.hdfcbank.com

www.rbi.in

www.nyse.com

www.google.co.in
http://images.google.co.in/imgres?imgurl=http://copland.udel.edu/stu-org/tutor/books.jpg&imgrefurl=http://copland.udel.edu/stu-org/tutor/&usg=__0s2kjOrjOANRfzovFWOk90WG_sU=&h=308&w=353&sz=31&hl=en&start=5&um=1&itbs=1&tbnid=YJwpYKgxzjcu-M:&tbnh=106&tbnw=121&prev=/images?q=photos+of+books&um=1&hl=en&sa=G&tbs=isch:1http://images.google.co.in/imgres?imgurl=http://copland.udel.edu/stu-org/tutor/books.jpg&imgrefurl=http://copland.udel.edu/stu-org/tutor/&usg=__0s2kjOrjOANRfzovFWOk90WG_sU=&h=308&w=353&sz=31&hl=en&start=5&um=1&itbs=1&tbnid=YJwpYKgxzjcu-M:&tbnh=106&tbnw=121&prev=/images?q=photos+of+books&um=1&hl=en&sa=G&tbs=isch:1


39/39

39

Syudy of Human Resource Management

Documents

Transcript of Syudy of Human Resource Management