SYNOPSIS TITLE:-

“A STUDY ON COMPENSATION MANAGEMENT IN HDFC BANK”

INTRODUCTION:

The project is all about the study of meaning of compensation, role of compensation, and the
significance of compensation in management in the HDFC bank. Compensation is the
remuneration received by an employee in return for his/her contribution to the organization. It
is an organized practice that involves balancing the work-employee relation by providing
monetary and non-monetary benefits to employees. Compensation is what employees receive in
exchange for their contribution to the organisation. Compensation Management is more than
just the means to attract and retain talented employees. In today’s competitive labor market,
organizations need to fully leverage their human capital to sustain a competitive position. This
requires integrating employee processes, information and programs with organizational
processes and strategies to achieve optimal organizational results.

OBJECTIVES OF THE STUDY:

 To understand in details how to establish pay rates to different level of employee.

 To understand the impact of compensation management on performance level.
 A comparative study of the compensation management strategies followed in different
banks.

 Understand the strategic importance of Compensation Management in an

organisation
 Appreciate the basic processes involved in Compensation
 Understand the Total Rewards approach
 Develop a Total Rewards programme
PROBLEM STATEMENT:

In the event, for some reasons beyond the control of the bank or inadvertently, the bank is
unable to meet the service levels committed in the dealings with individual customer, this
compensation policy will be applicable. The Compensation policy is therefore, designed to cover
areas relating to unauthorized debiting of account, payment of interest to customers for delayed
collection of cheques /instruments, payment of cheques after acknowledgement of stop payment
instructions, remittances within India, foreign exchange services, etc.

It is reiterated that the policy covers only compensation for financial losses in real terms for
specific value which customers might incur due to deficiency in the services offered by the bank
which can be measured directly and as such the commitments under this policy are without
prejudice to any right the bank will have in defending its position before any forum duly
constituted to adjudicate banker-customer disputes. The policy does not cover and is not
applicable in respect of claims made by customers on account of opportunity losses or damages
or claims pertaining to reputation loss.
Some of the specific problems are:

 To determine compensation strategy and its effect on employees retention in HDFC

bank.
 Limited alignment between pay and performance.
 Absence of an integrated process for all aspect of compensation management.
 Lack of integration of compensation and talent management applications.
 Customer service staff needs training.
 Management cover insufficient