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B M COLLEGE OF MANAGEMENT AND RESARCH

INDORE

SYNOPSIS

Submitted in partial fulfillment for the award of degree of master of business


administration

(Affiliated to DAVV Indore)

ON

The study on training and development of executive in private bank

(With special reference to HDFC bank)

PROJECT GUIDE SUBMITTED BY

KOMPAL MANGAL JAYA DEEPAK


TABLE OF CONTENTS

Sl.No. Topic Pages. No

1. CHAPTER-1 3
INTRODUCTION

2. CHAPTER-2 5
COMPANY PROFILE
3. CHAPTER-3 10
OBJECTIVE
4. CHAPTER-4
11
RESEARCH METHODOLOGY

5. CHAPTER-5 13
RECOMMENDATIONS

6. CHAPTER-6 15
CONCLUSION

7. CHAPTER-7 16
BIBLIOGRAPHY AND WIBLIOGRAPHY

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Chapter – 1
INTRODUCTION
Every organization needs to have well trained and experienced people to perform the
activities that have to be done. This is the most important aspect of Human Resource
Management. It is widely known that Human Resource Management helps people to
expand their capabilities and offer numerous opportunities. It is also felt that the
expanded capabilities and opportunity for people at work will lead directly to
improvement in operating effectiveness. The human resources approach means that
better people achieve better results. So if the current or potential job occupant can
meet this requirement, training is not important. But when this is not the case, it is
necessary to raise the skill levels an increase the versatility and adaptability of
employees. Inadequate job performance or a decline in productivity or changes
resulting out of job redesigning or a technological break –through require some type
of training and development effort. As the jobs become more complex, the importance
of employee development through training also increases.
Now the question arises “ What is training”?
Training is a process of learning a sequence of programmed behavior. It is application
of knowledge. It gives people an awareness of the rules and procedures to guide their
behavior. It attempts to improve their performance on the current job or prepare them
for an intended job, actually training is a developmental process. It should cover not
only those activities which improve job performance but also cover those which
bring, about growth of the personality, help individuals in the progress towards
maturity and actualization of their potential capacities so that they become not only
good employees, but better men and women. In organization terms, it is intended to
equip persons to earn promotion and hold greater responsibility. This may well
include not only imparting specific skills and knowledge but also inculcating certain
personality and mental attitudes. Training is felt necessity for an organization due to
its educative point of view because it does not provide definitive answers, but rather it
develops a logical and rational mind that can determine relationships among pertinent
variable and there by understand phenomena.
Basic purposes of Training
The purposes of training for employees would be clear from the following
observations which were made by the different authorities from time to time.

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1) To increase productivity:
2) To increase productivity:
3) To improve quality:
4) To help a company fulfil its future personal needs.
To improve organizational climate:
To improve health and safety:
.
Obsolescence prevention:
Personal growth:
Wiener E.L. and Attwood D.A. say that employee on a personal basis gain
individually from their exposure to educational experience. Moreover, management
development programmes seem to give participants a wider awareness, an enlarged
skill, and enlightened altruistic philosophy, and make enhanced personal growth
possible.

HUMAN RESOURCE MANAGEMENT


HRM may be defined as “strategy for acquisition, utilisation, improvement and
preservation of an enterprises human resources. It relates to establishing job
specification or the quantitative requirement of job, determining the number of
personnel required and developing the sources of manpower”.
HRM is a double edged weapon-maximum utilisation of which improves productivity
and aids in achieving objectives of an organisation. When faulty used leads t
disruption in the flow of work, less job satisfaction and constant headache for
management personnel.

AIMS & OBJECTIVES OF HRM


 To ensure effective utilization of human resources.
 To establish and maintain an adequate organisational relationship among all the
members of an organisation.

 To generate maximum development of human resources with in the organisation


 To ensure respect for human being by providing various services and welfare
facilities to the personnel.

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Chapter – 2
COMPANY PROFILE

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.
Rs. 10/- each). The HDFC Group holds 23.63 % of the Bank's equity and about 17.05
% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional
Investors (FIIs) and the Bank has about 4,33,078 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed
on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under
ISIN No US40415F2002.

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On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and
regulatory approval process. As per the scheme of amalgamation, shareholders of
CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.
The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to
HDFC Bank in terms of increased branch network, geographic reach, and customer
base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the
first merger of two private banks in the New Generation Private Sector Banks. As per
the scheme of amalgamation approved by the shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank
for every 5.75 shares of Times Bank.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of 1,725 branches spread in 780 cities across India.All branches are linked on
an online real-time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers
are located as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing/settlement bank to various leading stock
The bank has three key business segments:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agri-based businesses. For
these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers.

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Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers through the
growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local
Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial
markets in India, corporates need more sophisticated risk management information, advice and
product structures.
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited
(CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated
'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best
quality, carrying negligible investment risk.

HDFC’S ORGANISATIONAL STRUCTURE


Head office
Board of Director

Chairman & Managing Director

Executive Director Staff & HRD

General Manager
Monitoring

District General Manager
 Credit
Chief Officer
 Overseas
Vigilance
Deputy chief Officer
Operation
 & Inspection
Officer

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TRAINING AND DEVELOPMENT
Employee Training and development are integral parts of staffing function of
management.
Training implies a systematic procedure where by employee are imparted technical
knowledge and skills for specific jobs.
Development on the other hand implies educational process aimed at growth and
maturity of management personnel in terms of insights, attributes adaptability,
leadership and human relations on the basis of conceptual and theoretical knowledge.
HDFC has been paying much attention for the training of their staff. Various training
programme to update the knowledge of the staff. The emphasis is on the
dissemination of knowledge, development of skills and orientation of attitude of the
staff for enabling them to cope up with the challenges that are taking place in the
banking. In kepin with the fundamental principles of HRM, the bank has perceived
the training system as mechanism to develop a competitive workforce by growing the
available talent and to prepare them for meeting the on going and emerging
challenges of the market forces.
PERFORMANCE APPRAISAL
It is process of estimating or yielding the value excellence, qualities or status of some
object, person or thing, the purpose of performance appraisal is to determine what
aspect of performance needs to be evaluated.

Performance appraisal in HDFC bank is used for:-


 Identifying employees for salary increases, promotion transfer and lay off or
termination of services.

 Determining training needs of further improvement in performance.


 Motivating employees by indicating their preference levels
PUBLIC RELATIONS IS HDFC
Knowing the importance of internal communication, the bank started House Journal.
The publication is intended to lighten the employees about the performance and
progress of the bank, to cover news about the employee’s contribution of the growth
of the bank and also to encourage the inherent talents of the staff. The bank has
adopted multi pronged strategy to disseminate information with a view to reach larger
sections of the society in various states.
TRANSFER AND PROMOTION

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Promotion policy followed by HDFC Bank are:-
Promotion by merit:
promotion by merit provides incentives to employees for continuous improvement in
work. It positively adds to the overall organizational effectiveness.
Promotion by Seniority
It is an antidote for arbitraners in promotion. It minimizes disputes on promotion.
TRADE UNIONS IN HDFC
Trade unions function on the basis of three cardinal. These principles are
I) Unity is strength
II) Equal pay for equal work for the same job.
III) Security of service
Role Of Trade Union Can Be Categorized Into
 The clerical wing is known as All India Bank Employee Association
 The officers wing known as All India bank officers Association.
.

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Chapter – 3
OBJECTIVE
Every study has its own objective. The aims and objectives of study are as
follows:
 To determine the extent and degree of the training programmers fulfilling the
set objective.
 To identify and analyze whether the training’s input, trainings techniques and
methods are in line.

 To analyze the assessment of training needs.


 To analyze the learning process of trainees and suggest the effective measures.

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Chapter – 4
RESEARCH AND METHODOLOGY
Research Design
Research design is a research plan which requires that what data are to be collected,
what research techniques and instruments are to be used, how a sample is to be
selected, and how information is to be collected from this sample.
A research design specifies the methods and procedures for conducting a particular
study. Broadly speaking, research design can be grouped into three categories-
exploratory research, descriptive research, and causal research.
Research Instrument
Descriptive research is used in this project report in order to understand the evolving
competitive environment in the banking sector in India and to make a comparative
study among few banks operating in public private and foreign sector. This is the most
popular type of research technique, generally used in survey research design and most
useful in describing the characteristics of consumers behavior. The method used were
following

 Questionnaire method.
 Direct Interaction with the users.
 Data collection.
Mode of data collection
 Primary Data: - The sources of Primary data were Personal interviews.
 Secondary Data: - The sources of secondary data were the books and magazines.
Sample size planning:
Sampling is simply the process of learning about the population on the basis of
sample drown from it. It is that part of the universe which is selected for the purpose
of investigation. Sampling may be defined as a part of the whole, which represents all
the characteristics of the whole under consideration.
Sample size: 100
Approach: Convenience sampling
Methodology of sampling
Subjective and judgment non-random sampling was adopted for our research work
due to large sampling area. Any type of sampling in which the sample selected
depends on personal discretion of the Investigator is subjective or judgment sampling.
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This technique is used here because of the definite purpose in view and as such is not
used for general purposes. This sampling method has been used the choice of sample
depend exclusively on the judgment of the investigator. This methodology has been
used because of following reasons:
 To know the most typical of the population with respect to the characteristic under
study.

 Population is selected on the subjective basis and no probability law is applied.


 Biasness can be avoided as the investigator can make out who are answering
correctively or not.

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Chapter – 5
RECOMMENDATIONS
Training is an important and indispensable part of any organization and so does feel
the employees of HDFC. But only a small percentage of them could actually spell out
the reasons for organizing the training programmes. Benefits like updating of
knowledge, development of employee skills, coping up with the changing scenario,
increased efficiency etc. were stated by a few. A vast majority is still unaware of the
real significance for training. Hence there is no motivation for attending the training
programmes. Thus regular reinforcement off the importance of training programmes
is required. This can be done by stating the importance of training programmes before
the commencement of each session. Apart from this the objective of training should
also be stated by the faculty, so that the trainees realize why they are undergoing the
particular session. This objective will also keep in view better evaluation of the
sessions by participants. Motivation is the driving force, which enables a person to
give his 100% to each programme. This motivation can come in the individual only if
the training programme fulfills his individual needs. Hence the nominations should be
need based. Need HODs or location in-charges; with the help of peer groups or team
members of the individual and the individual himself can do analysis. A record of
each individual, deptt., PF number, his needs and the particular Programme, which the
individual is required to attend needs to be made at the end of each year by the HOD.
This record should be sent to the training department. The department, based on
nominations given can decide for the training programmes of the next year and hence
can send information about particular programmes to particular regions in advance.
Software developed on the above basis can make the work of HOD and training
department easier. It should be noted that the assent of the individual employees
should be taken before sending the nominations for particular programmes. The
participatory rural appraisal method revealed that some employees were sent again
and again for various programmes. The other employees of the same department who
even if required the training were being neglected. Some employees had 7-8 years or
more of time ago in attending the training programmes. The reason being that the
location in charge or HOD could not spare the other employees due to work load or
the privileged few were their favorites so they were sent again and again. To prevent
the frequent nomination of an Indian for various programmes and
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Training needs for Individuals
To combat the competitive environment every organisation need to have 'Stars' i.e.
the employees with high performance and high potential level. The 'Stars' do need
regular training to keep themselves updated with the latest developments in the field.
The specific training needs of individuals are as under:
Training Needs for Staff
> Staff people should be trained in interpersonal relations to maintain sound
industrial relations. Which is the prime need for any organization’s success.
> Work planning should be taught to the staff to enable them for maximum
contribution.
> Objective setting is another where staff needs to be trained.
Training Needs for Executives
> Executives must be sound in interpersonal behaviour to encourage the human-
relation philosophy in the organisation hence training should be provided.
> Conflict-management style must be taught to be executives.
> Positive-leadership and Institution building should be another area of training for
executives.
Group and organisational training Needs
Organisations are composite of individuals and groups. Individual contributions add
to the group contribution, which ultimately gets converted into organisational output.
The same way training to individuals is training to group and organisation in an
amalgamated form. Hence the individual training needs may also taken as group and
organisational training needs.

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Chapter – 6
CONCLUSIONS
To be true and honest the training and development team of HDFC works on the basic
of triple "E" i.e. is efficiently, elaborately & effectively. Hence we can say that just 5
years old the organization into the Indian subcontinent and with the quantum of
people they arc-working with and type of turnover they are showing is amazing.
Under noted few suggestions cum conclusion can be taken as for implementation to
reap furtherest benefits.
It is found that the average age group of trainees are in their twenties or early thirties
which signifies that the consumer durable industry need more of young blood as
enthusiasm is an integral part of the industry.
The maximum emphasis is given to job instruction methods where the trainee are
made to understand their job thoroughly and the role they are going to play in
performing their job.
Lecture as well as the presentation is the major part of imparting the education and
training them.
Respondent are not the part of planning and designing of the training programme
they do approach either to training team or the team head and in rare case they go to
trainer itself.
The entire respondent felt' that they were encouraged to come out with their own
ideas (innovation training) and concepts too.
The training objective are in keeping with needs and abilities of the trainee and it is
this that proves to be the major reason for success of the training as whole.
The relation objective is in keeping with needs and abilities of the trainee and it is
this that proves to be the major reason for success of the training as whole.
The relation between the training methods adopted and the training objective are to
be harmonious as it is the training method that fulfills the goal set by the training
objective.
To equip the trainee with new and relevant knowledge is one of the major objectives
of the training programme and this also helps in maintaining the curiosity of the
trainee through out the training session.

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BIBLIOGRAPHY
1. The Journal of Institute of Bankers.
2. Dessler G., Human Resource Management, Pearson Education Asia, 8th
Edition, 2000.
3. K. Aswathappa, Human Resource and Personnel Management, 3rd edition,
2002.
4. Edwin B. Flippo, Personnel Management, McGraw-Hill College,
1984.
5. HDFC Bank -Monthly Review.
6. Personal Management – Arun Monappa, Mirza, Saiyadain.
7. Principles of Bank Management – P Subba Rao.
8. Know your bank – Booklets of HDFC Bank.
9. Libraries
 PHD
 CII
 FICCI

10. Web sites of the three banks


http://www.hdfcbank.com/aboutus/general/default.htm
http://www.hdfcbank.com/aboutus/general/Promoter.htm
http://www.hdfcbank.com/aboutus/general/business_focus.htm
http://www.hdfcbank.com/aboutus/general/capital_structure.htm

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