CHAPTER 1

INTRODUCTION

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT:

HRM is the process of managing people of an organization with a human approach.

Human resources approach to manpower enables the manager to view the people as an
important resource. It is the approach through which organization can utilize the
manpower not only for the benefits of the organization but for the growth, development
and self satisfaction of the concerned people. Thus, HRM is a system that focuses on
human resources development on one hand and effective management of people on the
other hand so that people will enjoy human dignity in their employment.

HRM is a management function that helps managers to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in
organizations. The following aspects constitute the core of HRM:

1. HRM Involves the Application of Management Functions and Principles. The

functions and principles are applied for acquiring, developing, maintaining and providing
remuneration to employees in organization.

2. Decision Relating to Employees must be integrated. Decisions on different aspects of

employees must be consistent with other human resource (HR) decisions.

3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an

organization will result in betterment of services to customers in the form of high quality
products supplied at reasonable costs.

4. HRM Functions are not confined to Business Establishments Only but applicable to
non-business organizations such as education, health care, recreation and like. HRM
refers to a set of functions and activities designed and carried out in order to maximize
both employee as well as organizational effectiveness. 7 1.4 Objectives of HRM The
primary objective of HRM is to ensure the availability of competent and willing
workforce for an organization. Beyond this, there are other objectives too. Specifically,
HRM objectives are four fold: Societal, Organization, Functional and personal.

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INTRODUCTION TO ORGANIZAIONAL DEVELOPMENT:

Organizational development plan is the process through which an organization

develops the internal capacity to be the most effective it can be in its mission work and to
sustain itself over the long term. This definition highlights the explicit connection
between organizational development work and the achievement of organizational
mission. This connection is the rationale for doing OD work. Organization
development, according to Richard Beckhard, is defined as:

1. A planned effort...
2. Organization- wide...
3. Managed from the top...
4. To increase organization effectiveness and health...
5. Through planned interventions in the organization's 'processes', using behavioral
science knowledge.

According to Warren Benes, organization development (OD) is a complex

strategy intended to change the beliefs, attitudes, values, and structure of organizations so
that they can better adapt to new technologies, markets, and challenges.

Warner Burke emphasizes that OD is not just "anything done to better an

organization"; it is a particular kind of change process designed to bring about a
particular kind of end result. OD involves organizational reflection, system improvement,
planning, and self-analysis.

The term "Organization Development" is often used interchangeably with

Organizational effectiveness, especially when used as the name of a department or a part
of the Human Resources function within an organization.

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DEFINITION

At the core of OD is the concept of an organization, defined as two or more

people working together toward one or more shared goals. Development in this context is
the notion that an organization may become more effective over time at achieving its
goals.

"OD is a long range effort to improve organization's problem solving and renewal
processes, particularly through more effective and collaborative management of
organization culture-with specific emphasis on the culture of formal work teams-with the
assistance of a change agent or catalyst and the use of the theory and technology of
applied behavioral science including action research"

HISTORY

Kurt Levin (1898 - 1947) is widely recognized as the founding father of OD,
although he died before the concept became current in the mid-1950s. From Levin came
the ideas of group dynamics, and action research which underpin the basic OD process as
well as providing its collaborative consultant/client ethos. Institutionally, Levin founded
the Research Center for Group Dynamics at MIT, which moved to Michigan after his
death. RCGD colleagues were among those who founded the National Training
Laboratories (NTL), from which the T-group and group-based OD emerged. In the UK,
working as close as was possible with Lewin and his colleagues, the Tavistock Institute
of Human Relations was important in developing systems theories. Important too was the
joint TIHR journal Human Relations, although nowadays the Journal of Applied
Behavioral Sciences is seen as the leading OD journal.

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OD TOPICS

 Action research
 Appreciative Inquiry
 Chaos Theory in Organizational Development
 Collaboration
 Diversity management
 Employee research
 Group process
 Knowledge management
 Leadership development
 Managing change
 Meetings
 Organizational communication
 Organizational culture
 Organizational diagnostics
 Organizational engineering
 Organizational learning
 Organizational performance
 Performance improvement
 Process improvement
 Quality
 Social networks
 Strategic planning
 Succession planning
 Systems intelligence
 Systems thinking
 Team building
 T-groups

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NEED AND IMPORTANCE OF THE STUDY:

It is responsibility if manager to make employs look for better ways of during their jobs
in Kotak mahindra Group.

To study the awareness level of the employees and need for change management in
Kotak mahindra Group.

To study the level of change techniques followed by the management.

To know the existing relationship between the employer and management.

To suggest the stages of implementations of change management techniques in Kotak

mahindra Group.

SCOPE OF THE STUDY :

The scope of the study is confined to the develop management with reference to Kotak
investment solution ,Hyderabad .

 Origin and history of organization development.

 Need for the organization development.
 Development in organization.
 Organization development for individual firms.
 Organization development levels and process.
 Resistance to change
 Organization development in financial institutions.
 Organization development in unicaon investment solutions.

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OBJECTIVE OF THE STUDY :

To study the change management programmed being followed in various economics.

To find of the employees awareness on the organization development that are anticipated
in Kotak mahindra Group.

To find out what and how people accept and adopt organization development at work
place.

To determine the techniques affecting change.

To suggest strategies that will increase employees changing behavior.

RESEARCH METHODOLOGY :

The basic idea sampling is that by selection some of the elements in a population we
may draw conclusion about the entire population. For any systematic inquiry application
of appropriate methods and scientific bent of mind are sinequanon. This has an important
bearing on the collection of reliable data of the present study is to acquire an intensive
option about the organization development in Kotak investment solution private limited.

SAMPLING DESIGN:

Sample Population :

Sample population for this is all employess working(60 members) in Kotak investment
solution in Hyderabad branches.

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Sample size:

In this project sample size Is which include staff of company.

 Sampling technique: in this study non-probability convenient sampling was taken

as the sampling technique. as the sample unit of the organization has been taken.


Sampling tools:

The study has been carried out by using structured questionnaire is prepared by
negotiating with the guide.

Data collection:

The data used for analysis and interpretation form annual reports of the company
that is secondary forms of data.

The project is presented by using table’s graphs and with their interpretations. No
survey is undertaken or observation study is conducted in evaluating ‘Fixed assets’
performance of Kotak.

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LIMITATIONS:

1 The study period of 45 days as prescribed by university

2 The study is limited unto the date and information provided by Kotak company
and its annual reports

3 The report will not provide exact change development status and position in
Kotak investment solution company; it may vary from time to time and situation
to situation.
4 This report is not helpful in investing in Kotak either through disinvestments or
capital market.

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 CHAPTER 2
REVIEW OF LITERATURE

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ORGANIZATIONAL ARCHITECTURE

The architecture of an organization provides the framework through which an

organization aims to realize its core qualities as specified in its vision statement. It
provides the infrastructure into which business processes are deployed and ensures that
the organization's core qualities are realized across the business processes deployed
within the organization. In this way organizations aim to consistently realize their core
qualities across the services they offer to their clients.

According to most authors organizational architecture is a metaphor, like

traditional architecture it shapes the organizational (some authors would say the
informational) space where life will take place. It also represents a concept which implies
a connection between the organizational structure with other systems inside the
organization in order to create a unique synergistic system which will be more than just
the sum of its parts.

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Nadler & Merron (1995) Galbraith Henning Churchill Corporate
Tuchman (1995) (1997) (1997) Transitions
(1997) International
(2004)

Vision, strategic Strategy The role of the Strategy

goals and organization
strategic
management

Informal Organizational Reward Reward Organizational Organizational

organization culture systems systems culture culture

Formal Organizational Organizational Groupings Organizational Organizational

organization structure structure structure structure

Business Processes and Business

processes lateral links processes and
work design

Human Human Human Communication

resources resources resource
development

The goal of organizational architecture is to create an organization which will be

able to continuously create value for present and future customers, optimizing and
organizing it self. Some under organizational architecture understand building blocks
which are mandatory for the growth of the organization. To design an organization means
to set up a stage where the drama of life will take place.

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13
ORGANIZATIONAL LEARNING

Organizational learning is an area of knowledge within organizational theory

that studies models and theories about the way an organization learns and adapts.

In Organizational development (OD), learning is a characteristic of an adaptive

organization, i.e., an organization that is able to sense changes in signals from its
environment (both internal and external) and adapt accordingly. OD specialists endeavor
to assist their clients to learn from experience and incorporate the learning as feedback
into the planning process.

ORGANIZATIONAL KNOWLEDGE

What is the nature of knowledge created, traded and used in organizations? Some
of this knowledge can be termed technical – knowing the meaning of technical words and
phrases, being able to read and make sense of economic data and being able to act on the
basis of law-like generalizations. Scientific knowledge is ‘propositional’; it takes the
form of generalizations – whenever A, then B. For example, whenever water reaches the
temperature of 100 degrees, it boils; whenever it boils, it turns into steam; steam
generates pressure when in an enclosed space; pressure drives engines. And so forth.

A large part of the knowledge used by managers, however, does not assume this a
form. The complexities of a manager’s task are such that applying A may result in B, C,
or Z. A recipe or an idea that solved very well a particular problem, may, in slightly
different circumstances backfire and lead to ever more problems. More important than
knowing a whole lot of theories, recipes and solutions for a manager is to know which
theory, recipe or solution to apply in a specific situation. Sometimes a manager may
combine two different recipes or adapt an existing recipe with some important
modification to meet a situation at hand.

Managers often use knowledge in the way that a handyman will use his or her
skills, the materials and tools that are at hand to meet the demands of a particular

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situation. Unlike an engineer who will plan carefully and scientifically his or her every
action to deliver the desired outcome, such as a steam engine, a handyman is flexible and
opportunistic, often using materials in unorthodox or unusual ways, and relies a lot on
trial and error. This is what the French call ‘bricolage’, the resourceful and creative
deployment skills and materials to meet each challenge in an original way. Rule of
thumb, far from being the enemy of management, is what managers throughout the world
have relied upon to inform their action.

In contrast to the scientific knowledge that guides the engineer, the physician or
the chemist, managers are often informed by a different type of know-how. This is
sometimes referred to a ‘narrative knowledge’ or ‘experiential knowledge’, the kind of
knowledge that comes from experience and resides in stories and narratives of how real
people in the real world dealt with real life problems, successfully or unsuccessfully.

Narrative knowledge is what we use in everyday life to deal with awkward

situations, as parents, as consumers, as patients and so forth. We seek the stories of
people in the same situation as ourselves and try to learn from them. As the Chinese
proverb says "A wise man learns from experience; a wiser man learns from the
experience of others."

Narrative knowledge usually takes the form of organization stories (see

organization story and organizational storytelling). These stories enable partipants to
make sense of the difficulties and challenges they face; by listening to stories, members
of organizations learn from each other's experiences, adapt the recipes used by others to
address their own difficulties and problems. Narrative knowledge is not only the preserve
of managers. Most professionals (including doctors, accountants, lawyers, business
consultants and academics) rely on narrative knowledge, in addition to their specialist
technical knowledge, when dealing with concrete situations as part of their work. More
generally, narrative knowledge represents an endlessly mutating reservoir of ideas,
recipes and stories that are traded mostly by word or mouth on the internet. They are
often apocryphal and may be inaccurate or untrue - yet, they have the power to influence
people's sensemaking and actions.

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INDIVIDUAL VS. ORGANIZATIONAL LEARNING

Learning by individuals in an organizational context is a well understood process.

This is the traditional domain of human resources, including activities such as: training,
increasing skills, work experience, and formal education. Given that the success of any
organization is founded on the knowledge of the people who work for it, these activities
will and, indeed, must continue. However, individual learning is only a prerequisite to
organizational learning.

Others take it farther with continuous learning. The world is orders of magnitude
more dynamic than that of our parents, or even when we were young. Waves of change
are crashing on us virtually one on top of another. Change has become the norm rather
than the exception. Continuous learning throughout one’s career has become essential to
remain relevant in the workplace. Again, necessary but not sufficient to describe
organizational learning.

A learning organization does not rely on passive or ad hoc process in the hope
that organizational learning will take place through serendipity or as a by-product of
normal work. A learning organization actively promotes, facilitates, and rewards
collective learning.

Creating (or acquiring) knowledge can be an individual or group activity.

However, this is normally a small-scale, isolated activity steeped in the jargon and
methods of knowledge workers. As first stated by Lucilius in the 1st century BC,
“Knowledge is not knowledge until someone else knows that one knows.”

Capturing individual learning is the first step to making it useful to an

organization. There are many methods for capturing knowledge and experience, such as
publications, activity reports, lessons learned, interviews, and presentations. Capturing
includes organizing knowledge in ways that people can find it; multiple structures
facilitate searches regardless of the user’s perspective (e.g., who, what, when, where,

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why,and how). Capturing also includes storage in repositories, databases, or libraries to
insure that the knowledge will be available when and as needed.

Transferring knowledge requires that it be accessible to everyone when and where

they need it. In a digital world, this involves browser-activated search engines to find
what one is looking for. A way to retrieve content is also needed, which requires a
communication and network infrastructure. Tacit knowledge may be shared through
communities of practice or consulting experts. It is also important that knowledge is
presented in a way that users can understand it. It must suit the needs of the user to be
accepted and internalized.

Mobilizing knowledge involves integrating and using relevant knowledge from

many, often diverse, sources to solve a problem or address an issue. Integration requires
interoperability standards among various repositories. Using knowledge may be through
simple reuse of existing solutions that have worked previously. It may also come through
adapting old solutions to new problems. Conversely, a learning organization learns from
mistakes or recognizes when old solutions no longer apply. Use may also be through
synthesis; that is creating a broader meaning or a deeper level of understanding. Clearly,
the more rapidly knowledge can be mobilized and used, the more competitive an
organization.

An organization must learn so that it can adapt to a changing environment.

Historically, the life-cycle of organizations typically spanned stable environments
between major socioeconomic changes. Blacksmiths who didn’t become mechanics
simply fell by the wayside. More recently, many fortune 500 companies of two decades
ago no longer exist. Given the ever-accelerating rate of global-scale change, the more
critical learning and adaptation become to organization relevance, success, and ultimate
survival.

Organizational learning is a social process, involving interactions among many

individuals leading to well-informed decision making. Thus, a culture that learns and
adapts as part of everyday working practices is essential. Reuse must equal or exceed

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reinvent as a desirable behavior. Adapting an idea must be rewarded along with its initial
creation. Sharing to empower the organization must supersede controlling to empower an
individual.

Clearly, shifting from individual to organizational learning involves a non-linear

transformation. Once someone learns something, it is available for their immediate use.
In contrast, organizations need to create, capture, transfer, and mobilize knowledge
before it can be used. Although technology supports the latter, these are primarily social
processes within a cultural environment, and cultural change, however necessary, is a
particularly challenging undertaking.

LEARNING ORGANIZATION

The work in Organizational Learning can be distinguished from the work on a

related concept, the learning organization. This later body of work, in general, uses the
theoretical findings of organizational learning (and other research in organizational
development, system theory, and cognitive science) in order to prescribe specific
recommendations about how to create organizations that continuously and effectively
learn. This practical approach was championed by Peter Senge in his book The Fifth
Discipline.

DIFFUSION OF INNOVATIONS

Diffusion of innovations theory explores how and why people adopt new ideas,
practices and products. It may be seen as a subset of the anthropological concept of
diffusion and can help to explain how ideas are spread by individuals, social networks
and organizations.

ORGANIZATIONAL CULTURE

Organizational culture, or corporate culture, comprises the attitudes,

experiences, beliefs and values of an organization.

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 It has been defined as "the specific collection of values and norms that are shared
by people and groups in an organization and that control the way they interact with each
other and with stakeholders outside the organization. Organizational values are beliefs
and ideas about what kinds of goals members of an organization should pursue and ideas
about the appropriate kinds or standards of behavior organizational members should use
to achieve these goals. From organizational values develop organizational norms,
guidelines or expectations that prescribe appropriate kinds of behavior by employees in
particular situations and control the behavior of organizational members towards one
another." (Hill & Jones, 2001)

Senior management may try to determine a corporate culture. They may wish to
impose corporate values and standards of behavior that specifically reflect the objectives
of the organization. In addition, there will also be an extant internal culture within the
workforce.

Work-groups within the organization have their own behavioral quirks and
interactions which, to an extent, affect the whole system. Task culture can be imported.
For example, computer technicians will have expertise, language and behaviors gained
independently of the organization, but their presence can influence the culture of the
organization as a whole.

CLASSIFYING ORGANIZATIONAL CULTURE

Several methods have been used to classify organizational culture. Some are
described below:

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HOFSTEDE

Geert Hofstede demonstrated that there are national and regional cultural
groupings that affect the behavior of organizations.

Hofstede identified five dimensions of culture in his study of national influences:

 Power distance - The degree to which a society expects there to be differences in

the levels of power. A high score suggests that there is an expectation that some
individuals wield larger amounts of power than others. A low score reflects the
view that all people should have equal rights.
 Uncertainty avoidance reflects the extent to which a society accepts uncertainty
and risk.
 individualism vs. collectivism - individualism is contrasted with collectivism, and
refers to the extent to which people are expected to stand up for themselves, or
alternatively act predominantly as a member of the group or organization.
 Masculinity vs. femininity - refers to the value placed on traditionally male or
female values. Male values for example include competitiveness, assertiveness,
ambition, and the accumulation of wealth and material possessions.
 Long vs. short term orientation - describes a society's "time horizon," or the
importance attached to the future versus the past and present. In long term
oriented societies, thrift and perseverance are valued more; in short term oriented
societies, respect for tradition and reciprocation of gifts and favors are valued
more. Eastern nations tend to score especially high here, with Western nations
scoring low and the less developed nations very low; China scored highest and
Pakistan lowest.

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DEAL AND KENNEDY

Deal and Kennedy defined organizational culture as the way things get done
around here. They measured organizations in respect of:

 Feedback - quick feedback means an instant response. This could be in monetary

terms, but could also be seen in other ways, such as the impact of a great save in a
soccer match.
 Risk - represents the degree of uncertainty in the organization’s activities.

Using these parameters, they were able to suggest four classifications of

organizational culture:

The Tough-Guy Macho Culture. Feedback is quick and the rewards are high. This
often applies to fast moving financial activities such as brokerage, but could also apply to
a police force, or athletes competing in team sports. This can be a very stressful culture in
which to operate.

The Work Hard/Play Hard Culture is characterized by few risks being taken, all with
rapid feedback. This is typical in large organizations, which strive for high quality
customer service. It is often characterized by team meetings, jargon and buzzwords.

The Bet your Company Culture, where big stakes decisions are taken, but it may be
years before the results are known. Typically, these might involve development or
exploration projects, which take years to come to fruition, such as oil prospecting or
military aviation.

The Process Culture occurs in organizations where there is little or no feedback. People
become bogged down with how things are done not with what is to be achieved. This is
often associated with bureaucracies. While it is easy to criticize these cultures for being
overly cautious or bogged down in red tape, they do produce consistent results, which is
ideal in, for example, public services.

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CHARLES HANDY

Charles Handy (1985) popularized a method of looking at culture which some

scholars have used to link organizational structure to Organizational Culture. He
describes:

 a Power Culture which concentrates power among a few. Control radiates from
the center like a web. Power Cultures have few rules and little bureaucracy; swift
decisions can ensue.
 In a Role Culture, people have clearly delegated authorities within a highly
defined structure. Typically, these organizations form hierarchical bureaucracies.
Power derives from a person's position and little scope exists for expert power.
 By contrast, in a Task Culture, teams are formed to solve particular problems.
Power derives from expertise as long as a team requires expertise. These cultures
often feature the multiple reporting lines of a matrix structure.
 A Person Culture exists where all individuals believe themselves superior to the
organization. Survival can become difficult for such organizations, since the
concept of an organization suggests that a group of like-minded individuals
pursue the organizational goals. Some professional partnerships can operate as
person cultures, because each partner brings a particular expertise and clientele to
the firm.

EDGAR SCHEIN

Edgar Schein, an MIT Sloan School of Management professor, defines

organizational culture as "the residue of success" within an organization. According to
Schein, culture is the most difficult organizational attribute to change, outlasting
organizational products, services, founders and leadership and all other physical attributes
of the organization. His organizational model illuminates culture from the standpoint of
the observer, described by three cognitive levels of organizational culture.

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 At the first and most cursory level of Schein's model is organizational attributes
that can be seen, felt and heard by the uninitiated observer. Included are the facilities,
offices, furnishings, visible awards and recognition, the way that its members dress, and
how each person visibly interacts with each other and with organizational outsiders.

The next level deals with the professed culture of an organization's members. At
this level, company slogans, mission statements and other operational creeds are often
expressed, and local and personal values are widely expressed within the organization.
Organizational behavior at this level usually can be studied by interviewing the
organization's membership and using questionnaires to gather attitudes about
organizational membership.

At the third and deepest level, the organization's tacit assumptions are found.
These are the elements of culture that are unseen and not cognitively identified in
everyday interactions between organizational members. Additionally, these are the
elements of culture which are often taboo to discuss inside the organization. Many of
these 'unspoken rules' exist without the conscious knowledge of the membership. Those
with sufficient experience to understand this deepest level of organizational culture
usually become acclimatized to its attributes over time, thus reinforcing the invisibility of
their existence.

Surveys and casual interviews with organizational members cannot draw out these
attributes--rather much more in-depth means is required to first identify then understand
organizational culture at this level. Notably, culture at this level is the underlying and
driving element often missed by organizational behaviorists.

Using Schein's model, understanding paradoxical organizational behaviors

becomes more apparent. For instance, an organization can profess highly aesthetic and
moral standards at the second level of Schein's model while simultaneously displaying
curiously opposing behavior at the third and deepest level of culture. Superficially,
organizational rewards can imply one organizational norm but at the deepest level imply
something completely different. This insight offers an understanding of the difficulty that

23
organizational newcomers have in assimilating organizational culture and why it takes
time to become acclimatized. It also explains why organizational change agents usually
fail to achieve their goals: underlying tacit cultural norms are generally not understood
before would-be change agents begin their actions. Merely understanding culture at the
deepest level may be insufficient to institute cultural change because the dynamics of
interpersonal relationships (often under threatening conditions) are added to the dynamics
of organizational culture while attempts are made to institute desired change.

ELEMENTS OF CULTURE

G. Johnson described a cultural web, identifying a number of elements that can be

used to describe or influence Organizational Culture:

 The Paradigm: What the organization is about; what it does; its mission; its
values.
 Control Systems: The processes in place to monitor what is going on. Role
cultures would have vast rulebooks. There would be more reliance on
individualism in a power culture.
 Organizational Structures: Reporting lines, hierarchies, and the way that work
flows through the business.
 Power Structures: Who makes the decisions, how widely spread is power, and
on what is power based?
 Symbols: These include organizational logos and designs, but also extend to
symbols of power such as parking spaces and executive washrooms.
 Rituals and Routines: Management meetings, board reports and so on may
become more habitual than necessary.
 Stories and Myths: build up about people and events, and convey a message
about what is valued within the organization.

These elements may overlap. Power structures may depend on control systems,
which may exploit the very rituals that generate stories which may not be true.

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ENTREPRENEURIAL ORGANIZATIONAL CULTURE

Stephen McGuire defined and validated a model of organizational culture that

predicts revenue from new sources. An Entrepreneurial Organizational Culture (EOC) is
a system of shared values, beliefs and norms of members of an organization, including
valuing creativity and tolerance of creative people, believing that innovating and seizing
market opportunities are appropriate behaviors to deal with problems of survival and
prosperity, environmental uncertainty, and competitors’ threats, and expecting
organizational members to behave accordingly. The next level deals with the professed
culture of an organization's members. At this level, company slogans, mission statements
and other operational creeds are often expressed, and local and personal values are widely
expressed within the organization. Organizational behavior at this level usually can be
studied by interviewing the organization's membership and using questionnaires to gather
attitudes about organizational membership.

CRITICAL VIEWS ON ORGANIZATIONAL CULTURE

Writers from Critical management studies have tended to express skepticism

about the functionalist and unitarist views of culture put forward by mainstream
management thinkers. Whilst not necessarily denying that organizations are cultural
phenomena, they would stress the ways in which cultural assumptions can stifle dissent
and reproduce management propaganda and ideology. After all, it would be naive to
believe that a single culture exists in all organizations, or that cultural engineering will
reflect the interests of all stakeholders within an organization. In any case, Parker (2000)
has suggested that many of the assumptions of those putting forward theories of
organizational culture are not new. They reflect a long-standing tension between cultural
and structural (or informal and formal) versions of what organizations are. Further, it is
perfectly reasonable to suggest that complex organizations might have many cultures, and
that such sub-cultures might overlap and contradict each other. The neat typologies of
cultural forms found in textbooks rarely acknowledge such complexities, or the various
economic contradictions that exist in capitalist organizations.

25
 One of the strongest and widely recognised criticisms of theories that attempt to
categorise or 'pigeonhole' organisational culture is that put forward by Linda Smircich.
She uses the metaphor of a plant root to represent culture, describing that it drives
organisations rather than vice verca. Organisations are the product of organisational
culture, we are unaware of how it shapes behaviour and interaction (also recognised
through Scheins (2002) underlying assumptions) and so how can we categorise it and
define what it is?

MEASUREMENT OF ORGANIZATIONAL CULTURE

Despite the evidence suggesting their potential usefulness, organisational climate

metrics have not been fully exploited as leading safety, health and environmental
performance indicators and as an aid to relative risk ranking. Dodsworth et al are the first
researchers to have successfully used PLS modelling techniques to correlate
organizational climate metrics with an organisation’s safety performance. Further
information regarding this research can be obtained from the following link Dodsworth's
Homepage

In the context of effectiveness, the repertory grid interview can be used to capture
a representation of an organisation's culture or corporate culture - the organisation's
construct system. The repertory grid interview process provides a structured way of
comparing effective and less effective performance and capturing it in the interviewee's
words without imposing someone else's model or way of thinking

SUCCESSION PLANNING

In organizational development, succession planning is the process of identifying

and preparing suitable employees through mentoring, training and job rotation, to replace
key players — such as the chief executive officer (CEO) — within an organization as
their terms expire. From the risk management aspect, provisions are made in case no
suitable internal candidates are available to replace the loss of any key person. It is usual
for an organization to insure the key person so that funds are available if she or he dies

26
and these funds can be used by the business to cope with the problems before a suitable
replacement is found or developed.

Succession Planning involves having senior executives periodically review their

top executives and those in the next-lower level to determine several backups for each
senior position. This is important because it often takes years of grooming to develop
effective senior managers. There is a critical shortage in companies of middle and top
leaders for the next five years. Organizations will need to create pools of candidates with
high leadership potential.

A recent example of sound succession planning is the case of how General

Electric found a successor to its CEO Jack Welch. The Board of Directors engaged in a
lengthy and systematic review of the potential successors prior to his retirement.

With the Sarbanes-Oxley Act of 2002, succession planning in the United States has risen
in importance as a corporate governance issue.

A careful and considered plan of action ensures the least possible disruption to the
person’s responsibilities and therefore the organization’s effectiveness. Examples include
such a person who is:

 suddenly and unexpectedly unable or unwilling to continue their role within the
organization;
 accepting an approach from another organization or external opportunity which
will terminate or lessen their value to the current organization;
 indicating the conclusion of a contract or time-limited project; or
 moving to another position and different set of responsibilities within the
organization.

A succession plan clearly sets out the factors to be taken into account and the
process to be followed in relation to retaining or replacing the person.

27
 ORGANIZATIONAL ENGINEERING

Organizational Engineering is a form of Organizational Development created

by Gary Salton of Professional Communications, Inc. While traditional organizational
development is based on psychology and sociology theories, organizational engineering
aims to take a formula based approach in which people can be plugged into an
organizational environment equation and the outcome is predicted. Thus engineering
organizational development. Like organizational development the focus is to increase
efficiency, effectiveness, communication and coordination in groups of all kinds.

The information derived from organizational engineering testing is often used to

place people into groups based on their relationships for optimal compatibility with out
trying to change individuals.

The range of Organizational Engineering (OE) is from the individual level

(puberty and older) to culture (shared values, beliefs and behaviors). It provides a means
to understand, measure, predict and guide human behavior both individually and in
groups. The end objective of the discipline is to produce visible, positive results of
significant consequence and magnitude within a time frame that is useful to the entity
being addressed.

OE uses human information processing at an individual level. Sociology is the

tool of choice at the group level. The methods, tools and processes employed have been
documented in the books Organizational Engineering (Salton, 1996) and the Managers'
Guide to Organizational Engineering (Salton, 2000). The instrumentation has been
validated across all eight validity dimensions in the book Validation of Organizational
Engineering (Soltysik, 2000). These books are available from Professional
Communications Inc. Recent discoveries, additions and enhancements are published in
the Journal of Organizational Engineering (JOE) and are incorporated in the seminars Dr.
Salton periodically holds in Ann Arbor, MI.

28
TOOLS

Organizational Engineering is considered to be a knowledge base of how people

act and why. Developed to compliment the knowledge obtained through organizational
engineering research, "I Opt" measures the characteristics of an individual so that one can
draw conclusions based on the orga

TEAM BUILDING

NEED FOR TEAM BUILDING

Modern society and culture continues to become more fluid and dynamic. Factors
contributing to this include the communications revolution, the global market and the
ever-increasing specialization and division of labor. The net effect is that individuals are
now required to work with many different groups of people in their professional as well
as personal lives. Joining a new group and immediately being expected to get along with
them is somewhat unnatural. People have had to develop methods to help people adapt to
the new requirements.

All kinds of companies face the same difficulties. As yet there is no generally
agreed solution to the problem - it may not even be possible given the thousands of years
of cultural evolution that brought us to our present behavior patterns.

TEAM BUILDING INGREDIENTS

Ingredients seen as important to the successful set-up and launch of such team
efforts include:

 Selection of participants
 Establishing goals
 Allocation of roles within the team
 Harmonizing personality types

29
  Training on how to work together
 Support within the team
 Making effective use of resources
 Communication between team members and leaders

There have been no empirical studies that have been tested in anyof the
assumptions made by the following group theorists.

SELECTION OF PARTICIPANTS

The first important ingredient for team building is selecting of participants to be

in the activity. The team leader usually looks for specific things in his or her members in
order to ensure success in the project. It is very important to have members that have
confidence and are able to build trust among the other participants.

A participant must also break out of his or her shell and become a leader. Most
importantly, the participant must have a positive attitude at all times (LaFasto 3).
Sometimes it is helpful to have an assessment each member has to fill out at the end of a
team building experience to help in selecting participants in the future.

The authors of When Teams Work Best collected 15,000 assessments that team
members had to fill out about their fellow teammates. In the assessment there were only
two questions asked: (1) What strengths does this person bring to the team?

(2) What might this individual do to contribute more effectively to the team’s success?

The assessment revealed six factors to help distinguish between the effective and
ineffective team members. The factors fell into two groups: working knowledge and
teamwork.

“Working knowledge consists of two factors: experience and problem-solving

ability. Teamwork consists of four factors: openness, supportiveness, action orientation,

30
and personal style”. If each member has these qualities, the outcome of the team building
activity will likely be successful.

Establishing goals within the team is essential in team building. It is important for
the team leader to establish goals early so the members understand their purpose for
participating. If the goals are clarified, the participants are motivated to excel in the
activities and develop trust among their leader.

Goals give the team direction and provide a feeling of value and importance. It is
very important for a leader to make sure the team knows how the work will be done and
how they will accomplish their tasks. Without goals, the team has nothing to strive for,
and many members may lose motivation. Keeping the goal simple and achievable will be
very beneficial to the team in the end.

BALANCING SKILL SETS

When creating a team building activity, it is important to have balanced skill sets.
One way to achieve this is by having experts in different fields. If some members provide
their technical skills, and other members provide their theoretical skills, the outcome of
the project will likely be successful.

For example, individuals that are knowledgeable about the course materials are
confused about the technology part of it. On the other hand, individuals may feel that the
technical side of the problem is more comprehensible than the theoretical side of it.

By combining both types’ strengths, the team can come up with a solution that
benefits everyone. Balancing skill sets can be one of the most challenging things to
achieve, but it is very important to do to ensure the success of ones’ team.

31
ALLOCATION OF ROLES WITHIN THE TEAM

Assigning roles to team members help them to know their place on the team. Each
member should be assigned a role that is clearly defined and relates to his or her
personality.

Advantages of defining roles among team members are that it makes assignments
more straightforward, helps to understand the decision-making process, and assures the
task will be completed.

In most undergraduate projects there are three roles: project leader, chief
architect, and documentation leader. It is important to clarify each of these roles at the
very first meeting so members know exactly what they have to do.

Making a list of everyone’s skill sets, preference, work experience, courses taken,
and interests would help in assigning the roles. From this list it should be determined who
is best suited for what role. If there is conflict in the process, team members can always
share the responsibilities. Otherwise the leader can perform a quick lottery to decide who
gets what role.

However, participants may not have an interest in the role that they were
unwillingly assigned to. A serious problem that may occur is that a specific role may
have too little or too much work, which may cause resentment between the members.
Productivity may also be lost.

A team must always be ready to adjust to their new roles and be prepared if
assigned to a new one. Members must be willing to move beyond their roles and help
others in order to practice good teamwork and to get the job done (Mallet 5).

32
HARMONIZING PERSONALITY

The personality of a team leader plays a big factor on how the team performs. A
leader must understand the kind of personality they need to have in order to gain the
respect from his or her members. Many studies have been made to see if personality
effects working environments.

For example, V.J. Bentz (1985) conducted a study of ineffective managers at the
department store Sears. In his studies he found that almost all of the managers had a
“personality defect” of some sort.

Lesley and Van Velsor (1996) also conducted studies that ultimately found four
personality traits of ineffective managers. The four traits were poor interpersonal skills
(being insensitive, arrogant, cold, aloof, overly ambitious), unable to get work done
(betraying trust, not following through, overly ambitious), unable to build a team, and
unable to make the transition after promotion.

The personality traits that these managers portrayed were proven to negatively
effect the working environment. It is imperative for leaders to have a positive and
effective personality to gain respect among their organization and members.

TRAINING ON HOW TO WORK TOGETHER

A team must know how to work together in order to be productive and successful.
If a team can work together, they will be able to raise and resolve issues that are standing
in the way of accomplishing a goal.

Working together may not come easy at first, but with proper training the team
will be able to adapt quickly. The training may include the instruction on how to

33
communicate better, manage conflict, or understand the skills and talents that everyone
brings to the table.

A full assessment of the team’s need is recommended before the training

(Bubshait). To encourage team members to work together, many companies provide
workshops in communication skills, meetings management, listening, assertiveness,
conflict resolution, goal setting, and other topics that help in being an effective team
player.

If people are working together effectively rather than working by themselves, a

lot more work will be accomplished.

SUPPORT WITHIN THE TEAM

Another important ingredient for team building is supportiveness. Supportiveness

is the aspiration to help others succeed. “Someone who shows supportiveness is
dedicated to the team’s success and wants what’s best for the team, works behind the
scenes to aid the team, willing to pitch in whenever necessary, always willing to help out,
willing to take on more responsibility, very easy to work with, and listens well to others’
ideas” .

Recently, M. West, author of Effective Teamwork, introduced a comprehensive

model of team support. In the model he concluded that team support is a
multidimensional concept that includes four types.

The four types are

1) emotional support,
2) informational support,

3) instrumental support, and

4) appraisal support.

34
 Someone who provides a shoulder to cry on, encouraging words, and is
sympathetic of others’ pain is said to be a team emotional support.

A person that provides team informational support exchanges necessary

information about a certain thing to their peers. The person who is actually “doing the
support” provides team instrumental support.

The last type is appraisal support. This type is the help individual team members
can provide to aid in making sense of a particular problem (Somech).

Team building will be successful if the team members can cover each of these
types of team support.

MAKING EFFECTIVE USE OF RESOURCES

Effectively using resources is essential in the success of team building. In the

business-world companies are very serious on how they use their resources.

Many companies use team techniques in systems development to effectively use

their resources (Parker 9). “During group sessions, non-technical end users and
information systems staff meet on a common ground to hammer out systems solutions
that truly meet the needs of everyone---especially the needs of end-user management”.

To ensure system requirements are on target, companies like Cigna Company in

Philadelphia, CNA Insurance Company in Dearborn, Michigan, and Chase Manhattan
Bank in New York are all using group design techniques.

All of these companies believe in the same thing: effective goal setting, listening,
facilitation skills, consensus building, and a willingness to communicate.

35
 These team techniques in systems development not only make effective use of
resources, but they also result in measurable benefits. Resources are essential to team
building and they must be used wisely and efficiently.

COMMUNICATION BETWEEN TEAM MEMBERS AND LEADERS

When Teams Work Best, “the most important contribution a team leader can
make is to ensure a climate that enables team members to speak up and address the real
issues preventing the goal from being achieved.”

A leader with good communication skills must be able to speak the truth and deal
with problems openly. Their goal should be to promote listening, to understand different
viewpoints, and to work toward a resolution.

It is important for a team leader to make team members feel comfortable enough
to express their needs and their wants. Members want to feel that they know what is
going on at all time and are informed about things such as plans, priorities, and progress
the group is making.

Some ways to communicate is by email, online messengers, telephone, or face-to-

face methods. The most important part of communication is not so much the tools you
choose, but the dedication by each member of the team to use the chosen tools regularly.

As team performance reflects on management, managers—and even coaches—

sometimes feel the need to take part in constructing and fostering teams.

As with many activities, the methodology and effectiveness of team building

programs can run a full gamut. For a notorious recent example of team building run
amok, see the case of Kamp Staaldraad in South Africa, 2003.

36
TEAM BUILDING IN ORGANIZATIONAL DEVELOPMENT

The term ‘team building’ can refer generally to the selection and motivation of
teams, or more specifically to group self-assessment in the theory and practice of
organizational development.

When a team in an organizational development context embarks upon a process of

self-assessment in order to gauge its own effectiveness and thereby improve performance,
it can be argued that it is engaging in team building, although this may be considered a
narrow definition.

To assess itself, a team seeks feedback to find out both:

 its current strengths as a team

 its current weaknesses

To improve its current performance, a team uses the feedback from the team
assessment in order to:

 identify any gap between the desired state and the actual state
 design a gap-closure strategy

As teams grow larger, the skills and methods managers must use to create or
maintain a spirit of teamwork change. The intimacy of a small group is lost, and the
opportunity for misinformation and disruptive rumors grows.

Managers find that communication methods that once worked well are impractical
with so many people to lead. In particular, leaders encounter difficulties based on
Daglow’s Law of Team Dynamics: “Small teams are informed. Big teams infer.”

ACTION RESEARCH

Action research is research that each of us can do on our own practice, that “we”
(any team or family or informal community of practice) can do to improve its practice, or

37
that larger organizations or institutions can conduct on themselves, assisted or guided by
professional researchers, with the aim of improving their strategies, practices, and
knowledge of the environments within which they practice.

Kurt Lewin, then a professor at MIT, first coined the term “action research” in
about 1944, and it appears in his 1946 paper “Action Research and Minority Problems”.
In that paper, he described action research as “a comparative research on the conditions
and effects of various forms of social action and research leading to social action” that
uses “a spiral of steps, each of which is composed of a circle of planning, action, and
fact-finding about the result of the action”.

Action research is not only a research that describes how humans and
organizations behave in the outside world but also a change mechanism that helps human
and organizations reflect on and change their own systems (Reason & Bradbury, 2001).
After six decades of action research development, many methodologies have been
evolved, ranging:

 from those that are more driven by the researcher’s agenda to those more driven
by participants;
 from those that are motivated primarily by instrumental goal attainment to those
motivated primarily by the aim of personal, organizational, or societal
transformation; and
 from 1st-, to 2nd-, to 3rd-person research (i.e. my research on my own action,
aimed primarily at personal change; our research on our group (family/team),
aimed primarily at improving the group; and ‘scholarly’ research aimed primarily
at theoretical generalization and/or large scale change).

Action research can change the entire sense of social science, transforming it from
reflective knowledge about past social practices formulated by a priesthood of experts
(research PhDs) to an active moment-to-moment theorizing, data collecting, and
inquiring occurring in the midst of our ongoing lives. “Knowledge is always gained
through action and for action. From this starting point, to question the validity of social

38
knowledge is to question, not how to develop a reflective science about action, but how
to develop genuinely well-informed action—how to conduct an action science” (Torbert
2001).

Five major action research theories are:

 Chris Argyris's Action Science

 John Heron and Peter Reason's Cooperative Inquiry]]
 Paulo Freire's Participatory Action Research (PAR)
 William Torbert’s Developmental Action Inquiry
 Jack Whitehead's and Jean McNiff's Living Theory approach

Argyris’ action science invites individuals to study themselves in action with

others, and simultaneously attempts to contribute to and transform the practice of social
science itself. Therefore, it is primarily a 1st-person approach, learned in 2nd-person
settings, but with implications for 3rd-person social science theory and method that
Argyris (1970, 1980) has strongly articulated.

Heron’s (1996)and Reason’s (1995) Cooperative Inquiry brings peers (e.g.

doctors, social workers, young women managers, men) together in self-study groups.
Thus, it is primarily a 2nd-person approach, though group participants are also
encouraged to try 1st-person action research outside the groups, and Reason has played a
central role in mounting a paradigm challenge to ‘naively objective’ modernist social
science.

The Participatory Action Research approach of Freire (1970) and others,

primarily in the southern hemisphere, concerns empowering the poorest and least
educated members of society for literacy, for land reform analyses, and for community.
Hence, this approach is primarily 3rd-person in the scope of its intended societal
transformations.

39
The Developmental Action Inquiry approach of Torbert & Associates (2004) attempts to
interweave individual, 1st-person self-study with face-to-face 2nd-person self-study by
teams and with 3rd-person institution-wide self-study.

In the Living Theory approach of Whitehead (1989) and Whitehead and McNiff
(2006) individual's generate explanations of their educational influences in their own
learning, in the learning of others and in the learning of social formations. They generate
the explanations from experiencing themselves as living contradictions in enquiries of the
kind, 'How do I improve what I am doing?' They use action reflection cycles of
expressing concerns, developing action plans, acting and gathering data, evaluating the
influences of action, modifying concerns, ideas and action in the light of the evaluations.
Since action research is as much about creating a better life within more effective and just
social contexts as it is about knowledge-creating and discovering true facts and theories,
it should not be surprising that it has flourished in Latin America, Northern Europe,
India, and Australia as much or more than within university scholarship in the US.

A powerful tool for modern action research uses video of communities by

communities, and variations on that theme. Surprisingly it started in 1967 by a pioneering
advocate Don Snowdon who changed the lives of Newfoundland's Fogo islanders by
filming them and their grievances and promulgating their distress to their government.
This methodology is now called Participatory Video (see external link). Its chief power is
that the video is edited by it partipants.

SYSTEMS THINKING

Systems thinking is an approach to analysis that is based on the belief that the
component parts of a system will act differently when isolated from its environment or
other parts of the system, and argues against Descartes's reductionist view. It includes
viewing systems in a holistic manner, rather than through purely reductionist techniques.

Systems thinking is about gaining insights into the whole by understanding the
linkages and interactions between the elements that comprise the whole "system",

40
consistent with systems philosophy. It recognizes that all human activity systems are
open systems; therefore, they are affected by the environment in which they exist.

Systems thinking recognizes that in complex systems, events are separated by

distance and time; therefore, small catalytic events can cause large changes in the system.

CHAPTER-III

INDUSTRY PROFILE

& COMPANY PROFILE

41
42
 INDUSTRY PROFILE

INTRODUCTION:

Banking in India originated in the last decades of the 18th century. The first banks were
The General Bank of India, which started in 1786, and Bank of Hindustan, which started
in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of
India, which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two
being the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three banks merged in
1921 to form the Imperial Bank of India, which, upon India's independence, became
the State Bank of India in 1955.

HISTORY:
Indian merchants in [Calcutta] established the Union Bank in 1839, but it failed in 1848
as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in
1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank:
A company that issues stock and requires shareholders to be held liable for the company's
debt) It was not the first though. That honor belongs to the Bank of Upper India, which
was established in 1863, and which survived until 1913, when it failed, with some of its
assets and liabilities being transferred to the Alliance Bank of Simla.

Foreign banks too started to app, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in
1862; branches in Madras and Pondicherry, then a French colony, followed. HSBC
established itself in Bengal in 1869. Calcutta was the most active trading port in India,
mainly due to the trade of the British Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad It failed in 1958. The next was the Punjab National Bank, established

43
in Lahore in 1895, which has survived to the present and is now one of the largest banks
in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian Mutiny, and the
social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with the presidency
and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing ship,
divided by solid wooden bulkheads into separate and cumbersome compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation
Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
The fervour of Swadeshi movement lead to establishing of many private banks
in Dakshina Kannada and Udupi district which were unified earlier and known by the
name South Canara ( South Kanara ) district. Four nationalized banks started in this
district and also a leading private sector bank. Hence undivided Dakshina Kannada
district is known as "Cradle of Indian Banking".
During the First World War (1914–1918) through the end of the Second World
War (1939–1945), and two years thereafter until the independence of India were
challenging for Indian banking. The years of the First World War were turbulent, and it
took its toll with banks simply collapsing despite the Indian economy gaining indirect
boost due to war-related economic activities. At least 94 banks in India failed between
1913 and 1918 as indicated in the following table:

44
 Number of banks Authorised capital Paid-up Capital
Years
that failed (Rs. Lakhs) (Rs. Lakhs)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1

POST-INDEPENDENCE:
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end of
a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial
Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This
resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:
The Reserve Bank of India, India's central banking authority, was established in April
1934, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India".
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the SBI, and no two banks could have
common directors.

45
NATIONALIZATION:

Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969

Despite the provisions, control and regulations of Reserve Bank of India, banks in India
except the State Bank of India or SBI, continued to be owned and operated by private
persons. By the 1960s, the Indian banking industry had become an important tool to
facilitate the development of the Indian economy. At the same time, it had emerged as a
large employer, and a debate had ensued about the nationalization of the banking
industry. Indira Gandhi, then Prime Minister of India, expressed the intention of
the Government of India in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalization. The meeting received the paper
with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance,
1969')) and nationalized the 14 largest commercial banks with effect from the midnight
of July 19, 1969. These banks contained 85 percent of bank deposits in the
country Jayaprakash Narayan, a national leader of India, described the step as
a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)
Bill, and it received the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalization, the Government of India controlled
around 91% of the banking business of India. Later on, in the year 1993, the government
merged New Bank of India with Punjab National Bank. It was the only merger between

46
nationalized banks and resulted in the reduction of the number of nationalized banks from
20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%,
closer to the average growth rate of the Indian economy.

LIBERALIZATION:

In the early 1990s, the then Narasimha Rao government embarked on a policy

of liberalization, licensing a small number of private banks. These came to be known
as New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and KOTAK MAHINDRA
Bank. This move, along with the rapid growth in the economy of India, revitalized the
banking sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 74%
with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning.
The new wave ushered in a modern outlook and tech-savvy methods of working for
traditional banks. All this led to the retail boom in India. People not just demanded more
from their banks but also received more.
Currently (2010), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks
are considered to have clean, strong and transparent balance sheets relative to other banks
in comparable economies in its region. The Reserve Bank of India is an autonomous
body, with minimal pressure from the government. The stated policy of the Bank on the
Indian Rupee is to manage volatility but without any fixed exchange rate-and this has
mostly been true.

47
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pinks to increase its stake in
Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor
has been allowed to hold more than 5% in a private sector bank since the RBI announced
norms in 2005 that any stake exceeding 5% in the private sector banks would need to be
vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and personal
loans. There are press reports that the banks' loan recovery efforts have driven defaulting
borrowers to suicide.

ADOPTION OF BANKING TECHNOLOGY:

The IT revolution had a great impact in the Indian banking system. The use of computers
had led to introduction of online banking in India. The use of the modern innovation and
computerization of the banking sector of India has increased many folds after the
economic liberalisation of 1991 as the country's banking sector has been exposed to the
world's market. The Indian banks were finding it difficult to compete with the
international banks in terms of the customer service without the use of the information
technology and computers.

Number of branched of scheduled banks of India as of March 2005

48
The RBI in 1984 formed Committee on Mechanization in the Banking Industry (1984)
whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The
major recommendation of this committee was introducing MICR Technology in all the
banks in the metropolis in India. This provided use of standardized cheque forms and
encoders.
In 1988, the RBI set up Committee on Computerization in Banks (1988) headed by Dr.
C.R. Rangarajan which emphasized that settlement operation must be computerized in
the clearing houses of RBI in Bhubaneswar, Guwahati, Jaipur, Patna and
Thiruvananthapuram.It further stated that there should be National Clearing of inter-city
cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made Operational. It
also focused on computerization of branches and increasing connectivity among branches
through computers. It also suggested modalities for implementing on-line banking. The
committee submitted its reports in 1989 and computerization began form 1993 with the
settlement between IBA and bank employees' association.
In 1994, Committee on Technology Issues relating to Payments System, Cheque Clearing
and Securities Settlement in the Banking Industry (1994) was set up with chairman Shri
WS Saraf, Executive Director, Reserve Bank of India. It emphasized on Electronic Funds
Transfer (EFT) system, with the BANKNET communications network as its carrier. It
also said that MICR clearing should be set up in all branches of all banks with more than
100 branches.
Committee for proposing Legislation on Electronic Funds Transfer and other Electronic
Payments (1995) emphasized on EFT system. Electronic banking refers to DOING
BANKING by using technologies like computers, internet and networking,MICR,EFT so
as to increase efficiency, quick service,productivity and transparency in the transaction.

49
Number of ATMs of different Scheduled Commercial Banks Of India as on end March
2005.
Apart from the above mentioned innovations the banks have been selling the third party
products like Mutual Funds, insurances to its clients. Total numbers of ATMs installed in
India by various banks as on end March 2005 is 17,642.The New Private Sector Banks in
India is having the largest numbers of ATMs which is fol off site ATM is highest for the
SBI and its subsidiaries and then it is followed by New Private Banks, Nationalized
banks and Foreign banks. While on site is highest for the Nationalized banks of India.

NUMBER OF ON SITE OFF SITE TOTAL

BANK GROUP
BRANCHES ATM ATM ATM
NATIONALISED BANKS 33627 3205 1567 4772
STATE BANK OF INDIA 13661 1548 3672 5220
OLD PRIVATE SECTOR
4511 800 441 1241
BANKS
NEW PRIVATE SECTOR
1685 1883 3729 5612
BANKS
FOREIGN BANKS 242 218 579 797

50
 COMPANY PROFILE

KOTAK MAHINDRA BANK

Type Public
BSE: 500247
Traded as
NSE: KOTAKBANK
Industry Financial service
Founded 1985 (as Kotak Mahindra Finance Ltd)
Headquarters Mumbai, India
Key people Uday Kotak (Vice Chairman) & (MD)
Deposit accounts, Loans, Investment services, Business banking
Products
solutions, Treasury and Fixed income products etc.
Revenue 10,963 crore (US$1.98 billion)(2011)[1]
Net income 1,569 crore (US$283.99 million)(2011)
Website www.kotak.com

ABOUT US:

Dear Stakeholders,

51
I am delighted to inform that ING Vysya Bank has merged with Kotak Mahindra Bank
with effect from April 1, 2015, and the combined entity will bear the name Kotak
Mahindra Bank.

I see this as a historic moment in the Indian financial services sector, because never
before has a merger of this magnitude ever taken place. Further, it consolidates our
position as the fourth largest private sector bank in India.

This merger brings together two strong players in the industry to form a more robust and
fundamentally sound bank. ING Vysya Bank has been a respected name in Indian
banking, with a sterling legacy spanning eight decades. Similarly, in less than 30 years,
Kotak Mahindra Group has built a comprehensive financial services conglomerate that
truly serves all its customers' needs under the same roof.

My vision at the start of 2014 was to see a bigger, better, bolder Kotak. I am happy to
say, over 29,000 colleagues have worked hard to make this a reality and I am confident
that with another 10,000 colleagues becoming part of the Kotak family, we will together
take Kotak Mahindra Bank to even greater heights.

The merged entity – Kotak Mahindra Bank, will have a significant national footprint,
affording it the capacity and means to serve even better.

Our deep Indian roots, long and proven experience, and global standards of service will
enable us to deliver a truly seamless banking and financial services experience.

This merger couldn't have happened at a better time. I am confident that the merger will
firmly place us in a different orbit, and on a new trajectory of leadership and excellence.
It is a new chapter in India's growth story that is waiting to unfold.

The other growth chapters that we added in the last financial year include our entry into
general insurance space, expansion of our presence in asset management through
acquisition of schemes of Pine Bridge Mutual Fund, proposed diversification into a
payment bank, and investment in a commodity exchange, to create a Rupees Two Trillion
institution.

52
It is India's time to fly. I foresee phenomenal future for our country in the next decade.
We are at the cusp of a remarkable growth opportunity, and it is important to ensure that
our fundamentals are strong to make the most of the time ahead.

I take this opportunity to thank all of you for your continued support, and assure you that
we shall constantly strive to offer products and services par excellence.

I look forward to a long and mutually rewarding, fruitful relationship.

Thank you.

With warm regards,

Uday Kotak
Executive Vice Chairman & Managing Director,
Kotak Mahindra Bank Ltd.

Kotak Mahindra Bank Kotak Mahindra Bank is the fourth largest Indian private
sector bank by market capitalization, headquartered in Mumbai, Maharashtra. The bank’s
registered office (headquarters) is located at 27BKC, Bandra Kurla Complex, Bandra
East, Mumbai, India.
In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given
the licence to carry on banking business by the Reserve Bank of India (RBI). Kotak
Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a
bank.[2]

As on 30 September 2014, Kotak Mahindra Bank has over 641 branches and over 1,159
ATMs spread across 363 locations in the country. Kotak Mahindra bank has received
rave reviews from many customers and has been presented many awards by various
bodies in India. [3] The bank, before merger with ING Vysya had around 29,000
employees.[4]

HISTORY

Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading
financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd.
(KMFL), the Group’s flagship company, received a banking license from the Reserve

53
Bank of India (RBI). With this, KMFL became the first non-banking finance company in
India to be converted into a bank – Kotak Mahindra Bank Limited (KMBL).

In a study by Brand Finance Banking 500, published in February 2014 by the Banker
magazine (from The Financial Times Stable), KMBL was ranked 245th among the
world’s top 500 banks with brand valuation of around half a billion dollars ($481 million)
and brand rating of AA+.[5] [6] KMBL is also ranked among the top 5 Best Ranked
Companies for Corporate Governance in IR Global Ranking.[7]

OUR BUSINESSES

Kotak Mahindra is one of India's leading banking and financial services group, offering a
wide range of financial services that encompass every sphere of life.
Kotak Mahindra Bank Ltd
Kotak Business Logo
Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers
personal finance solutions of every kind from savings accounts to credit cards,
distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers
transaction banking, operates lending verticals, manages IPOs and provides working
capital loans. Kotak has one of the largest and most respected Wealth Management teams
in India, providing the widest range of solutions to high net worth individuals,
entrepreneurs, business families and employed professionals.
For more information, please visit the Kotak Mahindra Bank website
www.kotak.com/bank/personal-banking/
 Kotak Mahindra Old Mutual Life Insurance Ltd
 Kotak Securities Ltd
 Kotak Mahindra Capital Company (KMCC)
 Kotak Mahindra Prime Ltd (KMPL)
 Kotak International Business
 Kotak Mahindra Asset Management Company Ltd (KMAMC)
 Kotak Private Equity Group (KPEG)

54
  Kotak Realty Fund

SENIOR MANAGEMENT

Get acquainted with the Board of Directors at the Kotak Mahindra Group and meet some
of the most knowledgeable and recognised names in the financial world.

Uday S. Kotak
Uday Kotak
Executive Vice Chairman and Managing Director

As a young 26-year old entrepreneur in 1985, Uday Kotak started Kotak Capital
Management Finance Ltd. (which later became Kotak Mahindra Finance Ltd). The vision
was to eventually become a banking company. Private Indian banks were not even a
speck on the horizon at that time. On 22nd March 2003, Kotak Mahindra Finance Ltd.
became the first non-banking financial company (NBFC) in India’s corporate history to
be converted into a bank.

Kotak Mahindra Bank Ltd. (KMBL) is regarded as one of the most efficient and high
performing banks in India, built on the principles of simplicity and prudence. Uday
remains unfazed by market euphoria and his ‘basics of banking’ approach has ensured
that the loan book is of high quality and the bank is well capitalised. In a journey
spanning nearly three decades, Uday has not only helped the company grow to this scale
but also earn respect.

Today, Kotak Mahindra Group, a first generation enterprise, with revenue of US$ 2.8
billion, has a global presence, employs over 30,000 people and is recognised as one of the
topmost employers in India. The group has the distinction of providing a 48% CAGR to
its shareholders over a 29 year period. The core of the business model is ‘concentrated
India, diversified financial services’.

55
Uday has a strong focus on community development and inclusive growth which is
reflected by the Group’s initiatives to provide low cost services to rural customers and its
welfare programmes. Uday feels strongly that education is key to the alleviation of the
social malaise afflicting India's under-privileged. In a bid to address this issue, he has
established the Kotak Education Foundation that focuses on the educational needs of
underprivileged children.

Uday holds a Bachelor’s degree in Commerce and an MBA from Jamnalal Bajaj Institute
of Management Studies, Mumbai.

C Jayaram
Mr. C. Jayaram
Joint Managing Director

C. Jayaram, Joint Managing Director, Kotak Mahindra Bank Ltd., has been with the
Kotak Mahindra group since 1990. He was appointed as Executive Director of Kotak
Mahindra Finance Limited (now Kotak Mahindra Bank Limited) on 1st October 1999.

Jayaram heads the wealth management business and international operations for Kotak
Mahindra group. He also oversees the alternative investments business which includes
private equity funds and real estate funds, as well as the institutional equities business.

With over 25 years’ experience in many areas of finance and business, Jayaram has been
instrumental in building numerous businesses for the Kotak Mahindra Group, and has
headed Kotak Securities Ltd. as CEO in the past. He also played a crucial role in the
setting up the car finance business.

Prior to joining Kotak, Jayaram had worked with ICICI, and the consultancy division of
A.F. Ferguson. Jayaram is an alumnus of Indian Institute of Management, Calcutta
(IIMC).

56
Dipak Gupta
Mr. Dipak Gupta
Joint Managing Director

Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank has been with Kotak
Mahindra group since 1992. He was appointed as Executive Director of Kotak Mahindra
Finance Limited (now Kotak Mahindra Bank Limited) on 1st October 1999. Dipak
overlooks Group Human Resources, Administration, Infrastructure, Operations and IT.
He also heads the Asset Reconstruction business of the Bank.

Dipak joined Kotak Mahindra Finance Limited (KMFL) in the Corporate Finance
division. With over 25 years’ experience, he has played a key role in building various
businesses for Kotak Mahindra group. Dipak was instrumental in the collaboration of
Kotak Mahindra with Ford Credit International to form Kotak Mahindra Primus Limited
(KMPL), of which he was the first CEO. He was also responsible for setting up the retail
businesses post the conversion into a Bank.

OVERVIEW
Kotak Mahindra Bank Ltd. (KMBL) believes that financial institutions play a pivotal role
in catalysing sustainable economic growth that can deliver equitable development for all.
Translating this belief into actions, the Bank continually strives to intertwine
Environmental, Social and Governance aspects with all facets of business operations and
stakeholder dealings.
In order to adhere to the highest levels of governance practices, the Bank has set a
Business Responsibility agenda. It reflects KMBL’s philosophy to create enduring value
for all stakeholders in a responsible manner which also contributes to environmental
sustainability. Further, the Bank has also adopted a strong CSR policy, charting out its
plan to invest in our society and its own future. Kotak uses the power of its human and
financial capital to enable transformation of communities into vibrant, desirable places
for habitation.

57
OUR VISION

To positively contribute towards economic, environmental and social well-being of

communities through Corporate Social Responsibility agenda

OUR MISSION

Create a lasting value for communities by:

 Promoting and supporting education and other interventions for the under
privileged
 Encouraging employee volunteering
 Supporting Non-Governmental Organizations and other institutions with financial
and other resources to collectively deliver community initiatives

CSR Focus Areas***

 Promoting Education - Primary Focus Area

 Enhancing vocational skills and livelihood projects

 Promoting preventive healthcare and sanitation

 Reducing inequalities faced by socially and economically backward groups

 Environmental Sustainability

***For more information, please refer Kotak Mahindra Bank and its Subsidiaries’
Policy Statement on Corporate Social Responsibility

TIMELINES

Year Milestone

1985 Kotak Mahindra Finance Limited commences bill discounting business

58
1987 Kotak Mahindra Finance Limited enters leasing and hire purchase business

1990 Starts the auto finance division for financing passenger cars

1991 Launches investment banking business

1992 Enters the funds syndication business

Commenced joint venture with Goldman Sachs Group Inc.

1995
Investment Banking division incorporated into a separate company - Kotak
Mahindra Capital Company

The auto finance business is hived off into a separate company - Kotak Mahindra
Prime Limited (formerly known as Kotak Mahindra Primus Limited).
1996
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited,
for financing Ford vehicles.

Launches mutual fund through Kotak Mahindra Asset Management Company

1998
(KMAMC).
Kotak Securities launches online broking business (now
2000
www.kotaksecurities.com[8]).
Launches insurance business, partners Old Mutual from South Africa to form Kotak
2001
Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives
banking license from the Reserve Bank of India (RBI). With this, KMFL becomes
2003
the first non-banking finance company to be converted into a commercial bank -
Kotak Mahindra Bank Ltd.
2004 Enters alternate assets business with the launch of a private equity fund.
Kotak Mahindra Group realigns joint venture in Ford Credit; takes 100% ownership
2005 of Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and
sells its stake in Ford credit Mahindra to Ford.

59
2005 Launches a real estate fund
Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company and
2006
Kotak Securities Ltd.
2008 Launched a Pension Fund under India's National Pension System (NPS)
Kotak Mahindra Bank Ltd. opens a representative office in Dubai

2009 Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmadabad Commodities
Exchange (ACE)

2015 ING Vysya Bank has merged with Kotak Mahindra Bank with effect from 1 April

Merger with ING Vysya Bank

In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued

at ₹15000 crore (US$2.2 billion). With the merger, the total human resource count will
jump to almost 40,000 heads and the count of branch reached at 1261. [10] Post the
merger, ING Group which controlled ING Vysya Bank will own 7% share in Kotak
Mahindra Bank.[11]

AWARDS AND RECOGNITIONS

 Won ‘Gold Award for Best Innovation – World’s first socially powered bank
account’ and ‘Gold Award for Best App developed – World’s first banking
application using Twitter’ awards at the Indian Digital Media Awards 2014 for Kotak
Jifi
 Recognised as Highest Fundraising Company in Corporate Challenge category in
Standard Chartered Mumbai Marathon 2014
 Kotak Mahindra Bank was ranked 292nd among India's most trusted brands
according to the Brand Trust Report 2012, a study conducted by Trust Research
Advisory. In the Brand Trust Report 2013, Kotak Mahindra Bank was ranked 861st
among India's most trusted brands and subsequently, according to the Brand Trust
Report 2014, Kotak Mahindra Bank was ranked 114th among India's most trusted
brands.[12]

60
 Won National Securities Depository Ltd. (NSDL) award in the Best Performer in
account Growth Rate category 2013, for Demat Accounts [13]

61
WEALTH MANAGEMENT

 FinanceAsia
Best Private Bank India - FinanceAsia 2010

MISCELLANEOUS
 Best Local Trade Bank in India

The UK based Trade & Forfaiting Review awarded Kotak Mahindra Bank Ltd.
the Bronze Award in the category of Best Local Trade Bank in India at the TFR
Awards 2011.

 LACP Vision Awards 2010 for Annual Report 2010-11

Platinum Award - Best among Banking Category, APAC
Gold Award - Most Creative Report, APAC
Ranked No. 21 among Top 50 Reports, APAC
Ranked No. 87 among the World's Top 100 Annual Reports
 Businessworld
'Most Valuable CEO' overall, 2010 awarded to Mr. Uday Kotak, Executive Vice
Chairman & Managing Director
 CNBCTV 18
'Best Performing CFO in the Banking/Financial Services sector by CNBCTV 18
CFO Awards 2010 awarded to Mr. Jaimin Bhatt
 GIREM
GIREM awarded Kotak Realty Funds Group, the "Investor of the Year" Award
for 2009
 IBA Banking Technology Awards
Best Use of Business Intelligence - up, 2008
Best Enterprise Risk Management - Runner up, 2008

62
  The Great Places to Work Institute, India
Best Workplaces in India, 2008
 Hewitt
10th Best Employer in India, 2007, 2008 & 2009
 Financial Insights Innovation Award
Best Innovation in Enterprise Security Management in the Asia Pacific Region,
2009
 Frost & Sullivan
Best Passenger Vehicle Finance Company in India, 2006
 CNBC TV 18
Indian Business Leader of the Year, 2008 awarded to Uday Kotak, Executive
Vice Chairman & Managing Director

INTERNATIONAL ASSET MANAGEMENT

 Global Investor (Editorial Award)
Asian Asset Manager of the Year, 2009

ASSET MANAGEMENT
 ICRA Mutual Fund Awards 2009
Kotak Liquid (Regular Plan) - Ranked as a Seven Star Fund for its 1 year
erformance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 1 year performance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 3 year performance
Kotak 30 - Ranked as a Five Star Fund for its 3 year performance

INVESTMENT BANKING
 FinanceAsia
Best Investment Bank in India, 2010
Best Equity House in India, 2010
Best Broker in India, 2010

63
 Asiamoney
Best Domestic Equity House, 2010
Best Local Brokerage in the Asiamoney Brokers Poll – 2010
 Global Finance
Best Investment Bank in India, 2010
 Euromoney Real Estate Poll
Best Bank for Equity Finance in India, 2010
 Asset Asian Awards
Best Domestic Investment Bank, 2010
 FinanceAsia Country Awards for Achievement
Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010
Best Equity House in India, 2008 & 2010
 Asiamoney Best Domestic Bank Awards
Best Domestic Equity House, 2008, 2009 & 2010
 IFR Asia
India Equity House of the Year, 2008
 Global Finance
Best Investment Bank in India, 2008, 2009 & 2010
 Asset Asian Awards
Best Domestic Investment Bank, 2006, 2007, 2008 & 2009

64
CHAPTER 4

DATA ANALYSIS

& INTERPRETATION

65
1.Do you feel the compelling reasons for adopting the change programme?
Option NO of employee Percentage
yes 12 38%
No 6 10%
To some extent 24 40%
Don’ t Know 8 12%

NO of employee

yes
No
To some extent
Don’ t Know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 40 % fo the employess say that to some extent,they feel the
compelling reasons for adopting the development ,38% of them say yes,12 % don’t
know,and 10% say no

66
2.Are you aware of how when and where the develop will happen ?

Option No of employee percentage

To large extent 13 26%
To medium extent 21 42%
To little extent 16 32%
Not clear to all 0 0

No of employee

To large extent
To medium extent
To little extent
Not clear to all

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 42% of the employees are aware to medium extent of how
,when where the change will happen ,32% of them to large extent and 26% of them to a
little extent.

67
3.Does the senior executive team support need based changes ?
Option No of employee Percentage
Adequately 27 54%
Inadequately 19 6%
Appropriately 2 38%
Not applicable 2 2%

No of employee

Adequately
Inadequately
Appropriately
Not applicable

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 54% of the employess adequately that the people with the
responsibilities at their organization have the necessary skills,382% of them
appropriately,6% of them inadequately.

68
4.Has awarness programmes been conducted by your organization while implementing
development.

Option No of employee Percentage

Yes 29 58%
No 3 6%
To some extent 17 34%
Don’t know 1 2%

No of employee

Yes
No
To some extent
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 54% of the employees say that senior executive team support
the need based change adequently and 38% of the employees say appropriately and 6%
of say that senior executive team support the need based change inadequenlty and 1% say
not applicable.

69
5.Are all stakeholders involved in the development process. ?

Options No of employess Percentage

Yes 17 34%
No 8 16%
Tosome extent 23 46%
Don’t know 2 4%

No of employess

Yes
No
Tosome extent
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 58% of the employees say that awarness programmes have
been conducted by their organization while implementing change,34% of them say that to
some extent the awareness programmes are being conducted while implementing change
whereas 6% of them say no , and 2 % of them don’t know.

70
6.Do you agree that the employess are involved in framing the goals to lower level of the
organization.

Options No of employess Percentage

Agree 30 60%
Disagree 9 18%
Indifferent 6 12%
Don’t know 5 10%

No of employess

Agree
Disagree
Indifferent
Don’t know

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 60% of the employess agreed that the people with the
responsibilities at their organization have the necessary skills,12% of them agree to some
extent,18% of them disagree.

71
7.Does development support operational accountabilities ?

Options No of employess Percentage

Yes 23 46%
No 6 12%
To some extent 20 40%
Don’t know 1 2%

No of employess

Yes
No
To some extent
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 46% of the employees say that the change management
support operational accounatabillity 40% of them say to some extent.

72
8.Do you agree that people with responsibility at your organization have the necessary
skills ?

Options No of employess Percentage

Agree 26 52%
Disagree 7 14%
Indifferent 17 34%
Don’t know 0 0

No of employess

Agree
Disagree
Indifferent
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart riveals that 52% of the employess agreed that the people with the
responsibilities at their organization have the necessary skills,34% of them agree to some
extent,14% of them disagree.

73
9.Is the training programme sufficiently designed and adequently resourced ?

Options No of employess Percentage

yes 28 56%
No 3 65%
To some time 18 36%
Don’t know 1 2%

No of employess

yes
No
To some time
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart rivals that 56% of the employees agree that the training programme is
being sufficiently designed and adequently resourced ,36% of them agree to some extent,

74
10.Are terms being developed and supported for high performance?

Options No of employess Percentage

yes 20 40%
No 4 85%
To some time 20 40%
Don’t know 6 12%

No of employess

yes
No
To some time
Don’t know

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart reveals that 40% of the employees agree that teams are being developed
and support for high performance ,40% fo the employees agree to some extent,12% of
them don’t know 8% of them say no.

75
11.Is there focus on skills as well as technical skills in Kotak.

Options No of employess Percentage

On soft skills 2 4%
On technical skills 14 28%
Both 28 56%
Not at all 6 12%

No of employess

On soft skills
On technical skills
Both
Not at all

Comment :

Source :
From questionare given to the 50 employess.

Analysis :
The above chart reveals that 56% of the employees agree that Kotak focuses on both soft
skillsa and technical skills.

76
12.Do information human resource and other systems support the new operational
environment.

Options No of employess Percentage

Support 30 60%
Don’t support 1 2%
To some extent 18 36%
Don’t know 1 2%

No of employess

Support
Don’t support
To some extent
Don’t know

Comment:

Source :
From questionare given to the 50 employess.

Analysis :
The above chart reveals that 60% of the employess agree that information system,human
resource and other systems support the new operationsl environment 36% of the agree to
some extent ,2% of them say that it does not support,where as 2 % of the them don’t
know.

77
13.Are remuneration reward and recruitment systems aligned with the change objectives?
Options No of employess Percentage
Ye s 34 68%
No 8 16%
To some extent 6 12%
Don’t know 2 4%

No of employess

Ye s
No
To some extent
Don’t know

Comments:

Source :
From questionare given to the 50 employess.

Analysis :

The above chart reveals that 68% of the employess agree that remuneration rewards and
recruitment systems aligned with the development objective ,where as 16% of them say
no ,12% of them agree that it aligned to some extent with the development objective.

78
 CHAPTER 5

FINDINGS, SUGGESTIONS

& CONCLUSION

79
 FINDINGS

Organizational leaders who have experience with long-term organizational

development efforts have the following lessons to share with those who are considering
or are engaged in OD work:
The nature of OD work

• “Our sense is that organizational development is somewhat shaggier, less systematic,

and more situation-specific than the way we think about it in workshops and learning
clusters. It’s so didactic in workshops . . . . In reality and practice, it’s not as neat as we
present it; it’s different from organization to organization. It’s living; it changes as we
perfect it. It’s a dynamic, not a static thing.”

• “It’s a process of two steps forward, one step back; it’s a progression, and it’s not
always linear. You should be happy about your successes because there will be setbacks.”

• “It always takes longer than you think.”

• “You can’t pretend that there’s a magic OD formula. There are no ten things to do to
solve all problems. It’s about people and their personalities. There’s no resolution but
through interaction and day to day management. You can’t ever pretend that things will
disappear with OD.”

• “Organizations are like kids, it’s all about development. If you give them good, strong
Values, a clear vision of the future, and the view that everything is possible, they will
grow up to be like that and . . . . vice versa.”

• “You just have to do it (OD). It’s kind of like ‘good grooming.’ People don’t want to
know the details, but you’ve got to look and smell good as you walk out of the house.”

80
OD AS AN ONGOING, LONG TERM, NEVER-ENDING PROCESS

• “Above all else, the key lesson learned from the OD process is that OD is an ongoing
process which organizations must continually address if they are to be healthy and
effective. Thus, the Justice Center is committed to making OD an ongoing part of its
future focus.”

• “OD never stops. We’re just beginning. We’re not going to let the OD money run out.
We’re going to find ways to pay for it.”

• “We learned that organizational development is everybody’s job. It is a continual

process that never ends.”

81
 SUGGESTIONS
After analysis and conclusions, there is some need to provide a few suggestions to the
organization I am sincerely providing these suggestions for the welfare of the
organization. In order to analyze the job, we have to do some changes.

1) Mainly inspecting work is the main activity that is in the part of incumbent’s
supervisory duties. Not only that, there are several activities like training,
performance appraisal, coaching etc. also be given to the employees.
2) I observed that eighth grade education is enough for this job.
3) If you take proper precautions for mechanical hazards, the employees can do the
job effectively and get more output.
4) Try to replace the high technology in the place of low technology.
5) Try to decrease the amount of experience needed to perform this job.
6) If personal attributes are required by the job, then the productivity will be
increased.

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 CONCLUSION

These core components of effective organizations offer a framework for

understanding the goals of organizational development work. Specific skills, such as
leadership skills, group process skills, communication skills and problem-solving skills,
are essential in order for these components to be developed and maintained. The process
through which each organization approaches OD work must be developed in relation to
several factors, including its age and stage of development, the current conditions under
which it is operating externally and internally, and the history and identity of the
organization. Taken together, these components present a vision for organizational health
that can help guide and direct organizational development efforts.

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 QUESTIONNAIRE:

1. Name of the Employee :

2. Designation :
3. Department / Branch :
4. Age / Gender :

1.Do you feel the compelling reasons for adopting the change programme? [ ]
a) Yes
b) No
c)To some extent
d)Don’ t Know

2.Are you aware of how when and where the develop will happen ? [ ]
A.to large extent
b.to medium extent
c.to littile extent
d.not clear at all

3.Does the senior executive team support need based changes ? [ ]

a.adequantely
b.inadequately
c.appropriately
d.not appliccable

4.Has awarness programmes been conducted by your organization while implementing

development. [ ]
a.yes
b.no
c.to some extent
d.dont know.

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5.Are all stakeholders involved in the development process. ? [ ]
a.yes
b.no
c.to some extent.
d.dont know

6.Do you agree that the employess are involved in framing the goals to lower level of the
organization. [ ]
a.agree
b.disagree
c.indiffrent
d.dont know

7.Does development support operational accountabilities ? [ ]

a.yes
b.no
c.to some extent.
d.dont know

8.Do you agree that people with responsibility at your organization have the necessary
skills ? [ ]
a.agree
b.disagree
c.indiffrent
d.dont know

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9.Is the training programme sufficiently designed and adequently resourced ? [ ]
a.yes
b.no
c.to some extent.
d.dont know

10.Are terms being developed and supported for high performance? [ ]

a.yes
b.no
c.to some extent.
d.dont know

11.Is there focus on skills as well as technical skills in Kotak. [ ]

a.On soft skills
b.on both technicalskills
cboth
d.not at all

12.Do information human resource and other systems support the new operational
environment. [ ]
a.support
b.dont support
c.to some extent
d.dont know

13.Are remuneration reward and recruitment systems aligned with the change objectives?
[ ]
a.yes b.no
c.to some extent. d.dont know

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 BIBLIOGRAPHY
AUTHOR’S NAME BOOK’S NAME

ASWATHAPPA
HUMAN RESOURCE MANAGEMENT
L.M. PRASAD

HAROLD KOONTZ ORGANIZATIONAL BEHAVIOUR

PETER STIMPSON

ESSENTIAL OF MANAGEMENT

BUSINESS STUDIES

WEB SITES:
□ http://www.google.com
□ http://www.Kotak.com
□ http://www.hr.com

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