human resource- edited

8/6/2019 Human Resource- Edited

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HUMAN RESOURCE

EMPLOYEE SATISFACTION SURVEY

PRIYANKA SAXENAA-30101909098

MBA (HUMAN RESOURCES/ MARKETING)

2009-2011

A dissertation submitted in partial fulfillment of the requirements ofMasters in Business Administration

at theAmity Global Business School

Amity University, Noida

Month Year

MAY- 2011


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ABSTRACT

The following dissertation report is based on the Employee Satisfaction Survey in a Banking

Industry.

CHOICE OF THE BANKING INDUSTRY

I made a choice for the banking industry for the reason it is a service industry which required

highly qualified & trained individuals with a well groomed personality & a high degree of self

motivation to serve quality to customers & ensure high standards of work & behavior.

Self Motivation comes to an employee only when they are satisfied in the organization they are

working for, hence this report is based on the employee satisfaction survey.

KEY FOCUS

Here, the key focus is laid on the fact hat the employees are satisfied on various parameter in

both private & public sector banks as well.

In this particular report we have taken tow banks, one is private sector bank, The royal Bank Of

Scotland & the other one is Andhra Bank which is a public sector bank.

As we know that the environment in Private & Public organizations differs in various aspects

such as code of conduct, rules & regulations, quality of individuals working, employee-employer relations etc, & so they have different techniques for marking employee satisfaction so

this report will precisely show how the employees of a private bank & a public bank react to the

similar criteria which are put to see their satisfaction level in their respective organizations.

EXPECTED OUTCOMES

By the end of this survey, we will be able to see the reaction of employees & their satisfaction

level in their organizations


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ACKNOWLEDGEMENT

I, Priyanka Saxena of Amity Global Business School express my deepest thanks to my project

Guide Dr. Shruti Tripathi for guiding and correcting various documents of mine with attention

and care. She has taken pain to go through the project and make necessary correction as and

when needed.

I express my thanks to the Director of , Amity Global Business School , for extending his

support. My deep sense of gratitude to Col. Y K Arora, Director, for his support & guidance

Thanks and appreciation to the helpful people at The Royal Bank of Scotland & The Andhra

Bank, for their support.

I also offer my gratitude towards my project guide Ms. Suranjana Ghosh, from the Royal Bank

of Scotland for giving me all her co-operation & helping me to give a more professional

dimension to the report.

I would also thank all the participants of this report, who gave their valuable time to complete the

questionnaire & help me with the successful completion of the project & without whom this

project would have been a distant reality .

I also extend my heartfelt thanks to my family and well wishers.

Priyanka Saxena

A-30101909098


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TABLE OF CONTENTS

CHAPTER No. TOPIC

1 LITERATURE REVIEW

2 THE INDIAN BANKING INDUSTRY

3 A WORD ABOUT

4 AN INSIGHT INTO RESEARCH & ITS VARIOUS

ASPECTS

5 SIGNIFICANCE OF RESEARCH

6 MY INPUTS IN THE REPORT

7 INPUTS FOR THE RESEARCH

8 RESULT

9 CALCULATIONS

10 FINDINGS & ANALYSIS

11 APPENDIX

12 RECOMMENDATIONS

13 REFERENCES


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CHAPTER-1

LITERATURE REVIEW

Managing Employee Satisfaction in the Workplace stop using the recession as an excuse forignoring low morale among the workers who report to you.

By John Baldoni

John Baldoni is a leadership development consultant, executive coach, speaker, and author. In

2009, Top Leadership Gurus named John one of the top 25 leadership experts in the world. His

newest book is Lead Your Boss: The Subtle Art of Managing Up (Amacom, 2009). John also

writes the "Leadership at Work" column for Harvard Business Publishing. He can be contacted

via his Web site,www.johnbaldoni.com.

Once upon a time (say, way back in 2007), when making presentations, I used to include a slide

noting worker dissatisfaction levels. At one point, eight of 10 workers were disengagedthat is,

either uncommitted or actively looking for work elsewhere. Then came the Great Recession, and

talk of employee dissatisfaction abated.

But it never went away. New studies by the Hay Group and the Corporate Leadership Council,

which were cited in the Economist, note that employees are getting fed up. Factors include

overwork, underpayment, and underappreciation. As a result, as many as six in 10 are looking to

exit, according to the Hay Group. Some 85 percent of those not looking are staying still because

the job market remains weak.

So what's a manager to do? First, recognize that many of your employees are unhappy. They

probably feel overstretched and overburdened. Additionally, as other research studies show, a

significant number distrust their senior leadership. Many feel they have made sacrifices

incompensation that senior leaders have escaped. They also feel more vulnerable to cutbacks and

hence are unlikely to voice much dissatisfaction.

But as every savvy manager knows, an unhappy worker is an underproducing worker.

Organizations with disengaged employees go through the motions but do not put motions

forward to get the job done.
http://www.johnbaldoni.com/http://www.economist.com/business-finance/displaystory.cfm?story_id=16163228http://www.economist.com/business-finance/displaystory.cfm?story_id=16163228http://www.businessweek.com/managing/content/jun2010/ca2010061_752875.htmhttp://www.businessweek.com/managing/content/apr2009/ca20090424_492064.htmhttp://www.johnbaldoni.com/http://www.economist.com/business-finance/displaystory.cfm?story_id=16163228http://www.businessweek.com/managing/content/jun2010/ca2010061_752875.htmhttp://www.businessweek.com/managing/content/apr2009/ca20090424_492064.htm


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MAKING WORK MORE TOLERABLE

Solutions are not easy. Yes, recognition and incentive programs work, but too often such

programs address symptoms rather than the root causes of worker dissatisfaction. They serve as

proverbial Band-Aids for deep-seated malaise. If work has little meaning, incentivized solutions

are ends unto themselves, not means to an end: a more fulfilling workplace. Making work

meaningful is no simple matter and frankly is beyond the responsibility of most managers. After

all, businesses hire managers to get the work done, not make work enjoyable.

Finding purpose in work is an individual pursuit, but in my experience I have found good

examples of how managers do create higher levels of buy-in and thereby do make the work

experience more tolerable. Here are some suggestions.

ADDRESS THE SITUATION

The worst thing managers who suspect worker dissatisfaction can do is to ignore it, although that

is the time-honored tradition. Avoiding the topic does not make it go way. Find ways to raise the

issue at staff meetings. The blunt approach"So what's wrong?"may not work. People will

likely clam up. But if you are clever and talk about the issue and perhaps voice your own

dissatisfaction with the situation, you may have better luck. Make it safe for employees to talk

about workplace dissatisfiers. Often they are simple things: input into scheduling, flexibility inwork hours, or even something employees can make happen themselves, such as cleaner break

rooms.

ENCOURAGE ALTERNATIVES

Find ways you can improve the situations. Take the lead in addressing employee complaints.

Over the longer term, the best way is to let workers figure things out for themselves. Challenge

employees to come up with ideas for making improvements, either in job design or in job

process. Look for ways to remove the drudge factor in favor of the value add. Replace make-

work projects with make-it-work projects.


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SHOW OUTCOMES

Relate what your team does to what the company does. Say you work in purchasing: Find ways

to link your striving for best-value, best-cost suppliers with improved-quality products. Make the

link between improved quality and customer satisfaction. Such things would not have happened

if purchasing had not done its job. Some companies introduce employees to customers when

possible. Then employees see their products or services in use. That's a great way to encourage

meaning in the workplace.

Putting meaning into work is not a managerial responsibility; it falls to the employee to find

work that matters to him or herself. And when employees sign on to do a job, they have a

responsibility to perform it. Yes, in times of scarcity, as we are enduring now, compensation may

be less competitive and opportunities for advancement less available, but workers must do the

jobs employers pay them to do. Obvious, yes, but as studies show, many employees remaindisgruntled.

Simply acknowledging trouble in the workplace is a good first step. It creates an atmosphere of

honesty. There is always a risk that people will reveal too much dissatisfaction, but when the

manager makes it safe to offer up concerns and provides avenues of redress, workers can feel

they are part of a solution rather than part of a problem. And maybe that's all that can happen in

the short term. If so, acknowledge it and make the best of it. There are far too many people out of

work who would readily switch places with you or your employees.


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Mr V K KANNAN:

Provided us with the statements using a Likert Technique or scale.

The surveys of this type provides an understanding how the employee perceives the organization.

Employee satisfaction surveys measure your employee's opinions on most of the aspects of an

workplace including:

Overall satisfaction

Management/employee relations

Corporate culture

Career development

Compensation

Benefits

Recognition and rewards

Working conditions

Training

Staffing levels

Safety concerns

Policies and procedures


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How to do Employee Satisfaction Survey


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BY PRASHANTHA

AnalyseSurvey survey software is a complete solutionfor Employee

SatisfactionSurvey.

The AnalyseSurvey employee satisfaction survey solution includes industry standard surveytemplates, a platform for hosting survey, collecting responses, and an advanced suite ofanalytical tools for analyzing the results.

Building and deploying a employee satisfaction survey using AnalyseSurvey is very simple,quick and reliable. AnalyseSurvey survey software does not require any programming skills - allit takes to design a complete survey is only a few clicks. Responses are automatically computedand presented in an easy to read graphical format in real time. AnalyseSurvey includes an arrayof employee satisfaction survey templates.


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CHAPTER- 2

THE INDIAN BANKING INDUSTRY

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 theBank 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.

HISTORY

Foreign banks too started to arrive, particularly inCalcutta, 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 andPuducherry, then a French colony, followed.HSBC established itself

inBengal 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

inFaizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahorein

1895, which has survived to the present and is now one of the largest banks in India.

The presidency banks dominated banking in India but there were also some exchange banks and

a number of Indianjoint stockbanks. 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 under capitalized and lacked the experience and

maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzonto 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."
http://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Joint_stock_company


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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 nationalised 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 independenceof 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 economygaining 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:

YearsNumber of banks

that failed

Authorised capital

(Rs. Lakhs)

Paid-up Capital

(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
http://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Economy_of_India


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The major steps to regulate banking included:

The Reserve Bank of India, India's central banking authority, was nationalized on

January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership)

Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]

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 RBI, and no two banks could have common

directors.

NATIONALISATION

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

Despite the provisions, control and regulations ofReserve 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 AllIndia Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation."The

meeting received the paper with enthusiasm.

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
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Government_of_India


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banking business of India. Later on, in the year 1993, the government mergedNew Bank of

India with Punjab National Bank. It was the only merger between nationalized banks and

resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the

1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of

the Indian economy.

LIBERALISATION

In the early 1990s, the thenNarsimha Rao government embarked on a policy ofliberalization,

licensing a small number of private banks. These came to be known asNew Generation tech-

savvy banks, and included Global Trust Bank (the first of such new generation banks to be setup), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier asUTI

Bank),ICICI Bankand HDFC 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 inIndiacompletely. Bankers, till this time, were usedto 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.

THE CURRENT SCENARIO

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is

expected to remain the same in the coming years. Based on the projections made in the "India

Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts

that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets

of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That

will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in

2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during
http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/India


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the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95

and 2002-03. It is expected that there will be large additions to the capital base and reserves on

the liability side.

The Public Sector Banks(PSBs), which are the base of the Banking sector in India account for

more than 78 per cent of the total banking industry assets. Unfortunately they are burdened withexcessive Non Performing assets (NPAs), massive manpower and lack of modern technology.

On the other hand the Private Sector Banks are making tremendous progress. They are leaders in

Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned

they are likely to succeed in the Indian Banking Industry.

SOME OF THE PRIVATE PLAYERS

In the Indian Banking Industry some of the Private Sector Banks operating areIDBI Bank,ING

Vyasa Bank,SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks

from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental

Bank,Allahabad Bankamong others. ANZ Grindlays Bank, ABN-AMRO Bank, AmericanExpress Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking

industry.
http://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/banks-in-india/allahabad-bank.htmlhttp://business.mapsofindia.com/banks-in-india/allahabad-bank.htmlhttp://business.mapsofindia.com/banks-in-india/idbi-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/ing-vysya-bank-ltd.htmlhttp://business.mapsofindia.com/banks-in-india/state-bank-of-india.htmlhttp://business.mapsofindia.com/banks-in-india/allahabad-bank.html


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India Banking 2010

Towards a High-performing Sector


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BANKING IN THE YEAR GONE BY.2010

The last decade has seen many positive developments in the Indian banking sector. The policy

makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and relatedgovernment and financial sector regulatory entities, have made several notable efforts toimprove regulation in the sector. The sector now compares favourably with banking sectors inthe region on metrics like growth, profitability and non-performing assets (NPAs). A few bankshave established an outstanding track record of innovation, growth and value creation. This isreflected in their market valuation. However, improved regulations, innovation, growth andvalue creation in the sector remain limited to a small part of it. The cost of bankingintermediation in India is higher and bank penetration is far lower than in other markets. Indiasbanking industry must strengthen itself significantly if it has to support the modern and vibranteconomy which India aspires to be. While the onus for this change lies mainly with bankmanagements, an enabling policy and regulatory framework will also be critical to their success.

The failure to respond to changing market realities has stunted the development of the financialsector in many developing countries. A weak banking structure has been unable to fuel continuedgrowth, which has harmed the long-termhealth of their economies. In this white paper, weemphasise the need to act both decisively and quickly to build an enabling, rather than a limiting,banking sector in India.

GOOD PERFORMANCE,QUESTIONABLE HEALTH

Indian banks have compared favourably on growth, asset quality and profitability with otherregional banks over the last few years. The banking index has grown at a compounded annual

rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market indexfor the same period. Policy makers have made some notable changes in policy and regulation tohelp strengthen the sector. These changes include strengthening prudential norms, enhancing thepayments system and integrating regulations between commercial and co-operative banks.However, the cost of intermediation remains high and bank penetration is limited to only a fewcustomer segments and geographies. While bank lending has been a significant driver of GDPgrowth and employment, periodic instances of the failure of some weak banks have oftenthreatened the stability of the system. Structural weaknesses such as a fragmented industrystructure, restrictions on capital availability and deployment, lack of institutional supportinfrastructure, restrictive labour laws, weak corporategovernance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless

addressed, could seriously weaken the health of the sector. Further, the inability of bankmanagements (with some notable exceptions) to improvecapital allocation, increase the productivity of their service platforms and improve theperformance ethic in their organisations could seriously affect future performance.


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OPPORTUNITIES AND CHALLENGES FOR PLAYERS

The bar for what it means to be a successful player in the sector has been raised. Four challengesmust be addressed before success can be achieved. First, the market is seeing discontinuous

growth driven by new products and services that include opportunities in credit cards, consumerfinance and wealth management on the retail side, and in fee-based income and investmentbanking on the wholesale banking side. These require new skills in sales & marketing, creditand operations. Second, banks will no longer enjoy windfall treasury gains that the decade-longsecular decline in interest rates provided. This will expose the weaker banks. Third, withincreased interest in India, competition fromforeign banks will only intensify. Fourth, given the demographic shifts resulting from changes inage profile and household income, consumers will increasingly demand enhanced institutionalcapabilities and service levels from banks.

ONE OF THREE SCENARIOS WILL PLAY OUT BY 2010

The interplay between policy and regulatory interventions and management strategies willdetermine the performance of Indian banking over the next few years. Legislative actions willshape the regulatory stance through six key elements: industry structure and sector consolidation;freedom to deploy capital; regulatory coverage; corporategovernance; labour reforms and human capital development; and support for creatingindustry utilities and service bureaus. Management success will be determined onthree fronts: fundamentally upgrading organizational capability to stay in tune with the changingmarket; adopting value-creating M&A as an avenue for growth; and continually innovating todevelop new business models to access untapped opportunities. Through these scenarios, wepaint a picture of the events and outcomes that will be the consequence of the actions of policy

makers and bank managements. These actions will have dramatically different outcomes; thecosts of inaction or insufficient action will be high. Specifically, at one extreme, the sector couldaccount for over 7.7 per cent of GDP with over Rs.. 7,500 billion in market cap, while at theother it could account for just 3.3 per cent of GDP with a market cap of Rs. 2,400 billion.Banking sector intermediation, as measured by total loans as a percentage of GDP, could growmarginally from its current levels of ~30 per cent to ~45 per cent or grow significantlyto over 100 per cent of GDP. In all of this, the sector could generate employment to thetune of 1.5 million compared to 0.9 million today. Availability of capital would be a key factor the banking sector will require as much as Rs. 600 billion (US$ 14 billion) in capital to fundgrowth in advances, non-performing loan (NPL) write offs and investments in IT and humancapital upgradation to reach the high-performing scenario. Three scenarios can be defined to

characterize these outcomes: High performance: In this scenario, policy makers intervene only tothe extent required to ensure system stability and protection of consumer interests, leavingmanagements free to drive far-reaching changes. Changes in regulations and bank capabilitiesreduce intermediation costs leading to increased growth, innovation and productivity. Bankingbecomes an even greater driver of GDP growth and employment and large sections of thepopulation gain access to quality banking products. Management is able to overhaul bankorganizational structures, focus on industry consolidation and transform the banks into industry


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shapers. In this scenario we witness consolidation within public sector banks (PSBs) and withinprivate sector banks. Foreign banks begin to be active in M&A, buying out some old private andnewer private banks. Some M&A activity also begins to take place between private and publicsector banks. As a result, foreign and new private banks grow at rates of 50 per cent, while PSBsimprove their growth rate to 15 per cent. The share of the private sector banks (including

through mergers with PSBs) increases to 35 per cent and that of foreign banks increases to20 per cent of total sector assets. The share of banking sector value add in GDP increases toover 7.7 per cent, from current levels of 2.5 per cent. Funding this dramatic growth will requireas much as Rs. 600 billion in capital over the next few years.

EVOLUTION

Policy makers adopt a pro-market stance but are cautious in liberalising theindustry. As a result of this, some constraints still exist. Processes to create highly efficientorganisations have been initiated but most banks are still not best-in-class operators.Thus, while the sector emerges as an important driver of the economy and wealth in 2010,

it has still not come of age in comparison to developed markets. Significant changes arestill required in policy and regulation and in capability-building measures, especially bypublic sector and old private sector banks.In this scenario, M&A activity is driven primarily by new private banks, which take over someold private banks and also merge among themselves. As a result, growth of these banksincreases to 35 per cent. Foreign banks also grow faster at 30 per cent due to a relaxationof some regulations. The share of private sector banks increases to 30 per cent of total sectorassets, from current levels of 18 per cent, while that of foreign banks increases to over12 per cent of total assets. The share of banking sector value add to GDP increases to over4.7 per cent.

STAGNATION

In this scenario, policy makers intervene to set restrictive conditions andmanagement is unable to execute the changes needed to enhance returns to shareholdersand provide quality products and services to customers. As a result, growth and productivitylevels are low and the banking sector is unable to support a fast-growing economy.This scenario sees limited consolidation in the sector and most banks remain sub-scale. Newprivate sector banks continue on their growth trajectory of 25 per cent. There is a slowdownin PSB and old private sector bank growth. The share of foreign banks remains at 7 per centof total assets. Banking sector value add, meanwhile, is only 3.3 per cent of GDP.


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NEED TO CREATE A MARKET-DRIVEN BANKING SECTOR WITH

ADEQUATE FOCUS ON SOCIAL DEVELOPMENT

The term policy makers used in this document, as mentioned earlier, refers to the Ministry ofFinance and the RBI and includes the other relevant government and regulatory entities for thebanking sector. We believe a co-ordinated effort between the various entities is required toenable positive action. This will spur on the performance of the sector. The policy makers needto make co-ordinated efforts on six fronts:

Help shape a superior industry structure in a phased manner through managed consolidationand by enabling capital availability. This would create 3-4 global sized banks controlling35-45 per cent of the market in India; 6-8 national banks controlling 20-25 per cent ofthe market; 4-6 foreign banks with 15-20 per cent share in the market, and the rest beingspecialist players (geographical or product/segment focused).

Focus strongly on social development by moving away from universal directed norms toan explicit incentive-driven framework by introducing credit guarantees and market subsidiesto encourage leading public sector, private and foreign players to leverage technologyto innovate and profitably provide banking services to lower income and rural markets.

Create a unified regulator, distinct from the central bank of the country, in a phased mannerto overcome supervisory difficulties and reduce compliance costs.

Improve corporate governance primarily by increasing board independence and accountability.

Accelerate the creation of world class supporting infrastructure (e.g., payments, assetreconstruction companies (ARCs), credit bureaus, back-office utilities) to help the banking sectorfocus on core activities.

Enable labour reforms, focusing on enriching human capital, to help public sector and oldprivate banks become competitive.

PRIVATE BANKS IN INDIA

Private banking in India was practiced since the begining of banking system in India. The firstprivate bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one ofthe fastest growing Bank Private Sector Banks in India. IDBI ranks the tength largestdevelopment bank in the world as Private Banks in India and has promoted a world classinstitutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank ofIndia was Housing Development Finance Corporation Limited, to set up a bank in the private


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sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It wasincorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai andcommenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has

a pride of place for having the first branch inception in the year 1934. With successive years ofpatronage and constantly setting new standards in banking, ING Vysya Bank has many credits toits account.

LIST OF PRIVATE BANKS IN INDIA

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

Centurion Bank

City Union Bank

Dhanalakshmi Bank

Development Credit Bank Federal Bank

HDFC Bank

ICICI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

South Indian Bank United Western Bank

UTI Bank


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PUBLIC SECTOR BANKS IN INDIA

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks

which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the UnitedBank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. ComillaBanking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd.(1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), a Governmet of India Undertaking offers Domestic, NRIand Commercial banking services. OBC is implementing a GRAMEEN PROJECT in DehradunDistrict (UP) and Hanumangarh District (Raiasthan) disbursing small loans. This Public SecotorBank India has implemented 14 point action plan for strengthening of credit delivery to womenand has designated 5 branches as specialized branches for women entrepreneurs.

LIST OF PUBLIC BANKS IN INDIA

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank
http://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/andhra_bank.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_baroda.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_maharastra.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/corporation_bank.htmlhttp://finance.indiamart.com/investment_in_india/dena_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/oriental_bank_commerce.htmlhttp://finance.indiamart.com/investment_in_india/punjab_sind_bank.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/syndicate_bank.htmlhttp://finance.indiamart.com/investment_in_india/uco_bank.htmlhttp://finance.indiamart.com/investment_in_india/union_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/vijaya_bank.htmlhttp://finance.indiamart.com/investment_in_india/allahabad_bank.htmlhttp://finance.indiamart.com/investment_in_india/andhra_bank.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_baroda.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/bank_of_maharastra.htmlhttp://finance.indiamart.com/investment_in_india/canara_bank.htmlhttp://finance.indiamart.com/investment_in_india/central_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/corporation_bank.htmlhttp://finance.indiamart.com/investment_in_india/dena_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indian_bank.htmlhttp://finance.indiamart.com/investment_in_india/indian_overseas_bank.htmlhttp://finance.indiamart.com/investment_in_india/oriental_bank_commerce.htmlhttp://finance.indiamart.com/investment_in_india/punjab_sind_bank.htmlhttp://finance.indiamart.com/investment_in_india/punjab_national_bank.htmlhttp://finance.indiamart.com/investment_in_india/syndicate_bank.htmlhttp://finance.indiamart.com/investment_in_india/uco_bank.htmlhttp://finance.indiamart.com/investment_in_india/union_bank_india.htmlhttp://finance.indiamart.com/investment_in_india/united_bank_of_india.htmlhttp://finance.indiamart.com/investment_in_india/vijaya_bank.html


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CHAPTER-3A WORD ABOUT

THE ROYAL BANK OF SCOTLAND

INTRODUCTION

The Royal Bank of Scotland is one of the retail banking subsidiaries of the Royal Bank ofScotland Group plc, and together with NatWest and Ulster Bank, provides branch bankingfacilities throughout the British Isles. Royal Bank of Scotland has around 700 branches, mainlyin Scotland though there are branches in many larger towns and cities throughout England andWales. The Royal Bank of Scotland and its parent, the Royal Bank of Scotland Group, arecompletely separate from the fellow Edinburgh based bank, the Bank of Scotland, which pre-dates the Royal Bank of Scotland by 32 years. The Bank of Scotland was effective in raisingfunds for the Jacobite Rebellion and as a result, The Royal Bank of Scotland was established toprovide a bank with strong Hanoverian and Whig ties.

BRANDING

The RBS Group uses branding developed for the Bank on its merger with the NationalCommercial Bank of Scotland in 1969. The Group's logo takes the form of an abstract symbol offour inward-pointing arrows known as the "Daisy Wheel" and is based on an arrangement of 36piles of coins in a 6 by 6 square, representing the accumulation and concentration of wealth bythe Group.The Daisy Wheel logo was later adopted by RBS subsidiaries Worldpay, Ulster Bankin Ireland and Citizens Financial Group in the United States.Since 2006 the brand has moved away from referring to both the Group brand and its retailbanking brand as the "Royal Bank of Scotland", instead using the "RBS" initialism. This isintended to support the positioning of the bank as a Global financial services player as opposedto its roots as a national bank. An example of the current branding can be found in the SixNations Championship in rugby union, which it sponsors as the RBS 6 Nations. However,"Royal Bank of Scotland" is still used alongside the RBS initialism, with both appearing on banksignage.RBS sponsor the Williams F1 team, and have done since 2005 They have supported tennis playerAndy Murray since he was aged 13.


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PRODUCTS & SERVICES

RBS Savings AccountsRBS Current AccountsRBS Term Deposits

RBS Van Gogh Preferred BankingRBS Bancassurance LifeRBS Bancassurance (Non Life)

TECHNOLOGY PRODUCTS

On-Line Tax Accounting System (OLTAS)Real Time Gross Settlement (RTGS)ATM ServicesAny Branch Banking

Electronic Clearing Service (ECS)National Electronic Funds Transfer


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THE ANDHRA BANK

Andhra Bank was registered on 20 November 1923 and commenced business on 28 November

1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs. The

Bank crossed many milestones and the Bank's Total Business as on 30.06.2008 stood at

Rs.83,256 Crores with a Clientele base over 1.74 Crores. The Bank is rendering services through

2139 Business Delivery Channels consisting of 1371 branches, 66 Extension Counters, 38Satellite Offices and 664 ATMs spread over 21 States and 2 Union Territories as at the end of

June, 2008. All Branches are 100% computerized, 1186 units viz., 1101 Branches, 68 Extension

Counters, 15 Service Centres networked under Cluster Banking solution and providing "Any

Branch Banking(ABB)". Real Time Gross Settlement (RTGS) Facility and National Electronic

Fund Transfer (NEFT) facility has been introduced in 723 Branches. To provide value-added

services to Customers, the Bank has set up its own 664 ATMs as on 30.06.2008. Of which

03 Mobile ATMs and two with Biometric access. Besides, ATM sharing arrangements with

several Banks including SBI group, IDBI Bank, UTI Bank, HDFC Bank, Indian Bank and others

under National Financial Network Switch covering 24856 ATMs.

Bank is migrating to "Centralized Core Banking Solution". 118 Branches have already migrated

to CBS. It is proposed to cover 550 branches by September 2009. This will benefit the

customers, who will have access to banking and financial services anytime, anywhere through

multiple delivery channels. Andhra Bank is a pioneer in introducing Credit Cards in the country

in 1981 .

The Bank introduced Internet Banking Facility (AB INFI-net) to all customers of cluster linked

branches. Rail Ticket Booking Facility is made available to all debit card holders through IRCTC

Website through a separate gateway. Corporate Website is available in English, Hindi and

Telugu Languages communicating Bank's image and information. Bank has been given 'BEST

BANK AWARD' a banking technology award by IDRBT, Hyderabad for extensive use of IT in

Semi Urban and Rural Areas on 02.09.2006. IBA Jointly with TFCI has conferred the Joint

Runner-up Award to the Bank in the Bet Payments initiative in recognition of outstanding

achievement of the Bank in promoting ATM Channel. Bank successfully conducted " Bancon


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2006", a two day event at Hyderabad, deliberating on Inclusive Growth - A New Challenge.

Kiddy Bank Scheme, with insurance benefits, was relaunched to inculcate savings habit among

the children. Bank has mobilized nearly 90000 new accounts during 2007-08.

As a part of "Financial Inclusion", Bank adopted two districts, namely, Srikakulam in Andhra

Pradesh and Ganjam in Orissa and achieved 100% coverage. Bank has introduced Smart Card

Scheme Pilot project in Warangal District and the same will be extended to other Lead Districts

in due course. Bank has opened 2.11 lakh accounts under "No-frill accounts" category till

30.06.2008.

Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB

and SBH sponsored the Andhra Pradesh Banker's Institute of Entrepreneurship Development,

which will offer training to unemployed youth for improving their skills in Andhra Pradesh.

Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh - birth place ofDr.Bhogaraju Pattabhi Sitaramayya for all-round development. A comprehensive budget with an

outlay of Rs.5.50 Crore is finalized for improving health, sanitation, education and social service

facilities in the village.

Bank has been ranked No.1 in terms of number of Life Insurance Policies mobilized amongst all

the Agency Banks dealing with "Life Insurance Corporation of India". Bank also has tie-up with

United India Insurance Company Limited under Bancassurance(Non-Life).

Bank was ranked 532nd for the year ended 31.03.2007 amongst Top 1000 Banks in the world by

"The Banker" - a London based publication based on Tier I Capital as defined by Basel's Bankfor International Settlements (BIS).

Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form a joint

venture life insurance company IndiaFirst Life Insurance Company. The shareholders' agreement

has already been signed and necessary formalities are being completed for setting up of the

company. The JV Company is already incorporated in June'08 and is in the process of filing for

approvals from IRDA etc. IndiaFirst has commenced operations.

PRODUCTS & SERVICES

AB Savings AccountsAB Current AccountsAB Term DepositsAB Arogyadaan SchemeAB Bancassurance Life
http://en.wikipedia.org/wiki/IndiaFirst_Life_Insurance_Companyhttp://en.wikipedia.org/wiki/IndiaFirst_Life_Insurance_Company


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AB Bancassurance (Non Life)

TECHNOLOGY PRODUCTS

Multi City Cheque FacilityOn-Line Tax Accounting System (OLTAS)Real Time Gross Settlement (RTGS)Instant Funds TransferATM ServicesAny Branch BankingElectronic Clearing Service (ECS)National Electronic Funds Transfer


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CHAPTER-4

AN INSIGHT INTO RESEARCH & ITS VARIOUS ASPECTS

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define research asa scientific and systematic search for pertinent information on a specific topic. In fact, research isan art of scientific investigation. The Advanced Learners Dictionary of Current English laysdown the meaning of research as a careful investigation or inquiry specially through search fornew facts in any branch of knowledge.1 Redman and Mory define research as a systematizedeffort to gain new knowledge.2 Some people consider research as a movement, a movementfrom the known to the unknown. It is actually a voyage of discovery. We all possess the vitalinstinct of inquisitiveness for, when the unknown confronts us, we wonder and our

inquisitiveness makes us probe and attain full and fuller understanding of the unknown. Thisinquisitiveness is the mother of all knowledge and the method, which man employs for obtainingthe knowledge of whatever the unknown, can be termed as research.

DEFINITION

Research is an academic activity and as such the term should be used in a technical sense.According to Clifford Woody research comprises defining and redefining problems, formulatinghypothesis or suggested solutions; collecting, organising and evaluating data; making deductionsand reaching conclusions; and at last carefully testing the conclusions to determine whether theyfit the formulating hypothesis.

TYPES OF RESEARCH

The basic types of research are as follows:

(i)Descriptive vs. Analytical:

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major

purpose of descriptive research is description of the state of affairs as it exists at present.

In analytical research, on the other hand, the researcher has to use facts or information alreadyavailable, and analyze these to make a critical evaluation of the material.


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Applied vs. Fundamental:

Research can either be applied (or action) research or fundamental (to basic or pure) research.

Applied research:aims at finding a solution for an immediate problem facing a society or an

industrial/business organisation,

Fundamentalresearch:is mainly concerned with generalisations and with the formulation of atheory.

Quantitative vs. Qualitative:

Quantitative research: Based on the measurement of quantity

or amount. It is applicable to phenomena that can be expressed in terms of quantity.

Qualitative research:, on the other hand, is concerned with qualitative phenomenon, i.e.,phenomena relating to or involving quality or kind.

Conceptual vs. Empirical

Conceptual research: Is that related to some abstract idea(s) ortheory. It is generally used by philosophers and thinkers to develop new concepts or toreinterpret existing ones.

empirical research: Relies on experience or observation alone, often without due regard for system andtheory. It is data-based research, coming up with conclusions which are capable of being verified byobservation or experiment.

SOME OTHER TYPES OF RESEARCH

All other types of research are variations of one or more of the above stated approaches, basedon either the purpose of research, or the time required to accomplish research, on theenvironment in which research is done, or on the basis of some other similar factor. Form thepoint of view of time, we can think of research.

One-time research or longitudinal research.

In the former case the research is confined to a single time-period, whereas in the latter case theresearch is carried on over several time-periods.

Field-setting research or laboratory research or simulation research:


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Depending upon the environment in which it is to be carried out.

Clinical or diagnostic research:

Such researchfollow case-study methods or indepth approaches to reach the basic causal

relations. Suchstudies usually go deep into the causes of things or events that interest us, usingvery smallsamples and very deep probing data gathering devices.

Exploratory:

The objective of exploratory research is the development ofhypotheses rather than their testing, whereas formalized research studies are those withsubstantial structure and with specific hypotheses to be tested.

Historical research :

Is that which utilizes historical sources like documents, remains, etc. to study events or ideas ofthe past, including the philosophy of persons and groups at any remote point of time.

Conclusion-oriented: .

While doing conclusion oriented research, a researcher is free to pick up a problem, redesign theenquiry as he proceeds and is prepared to conceptualize as he wishes.


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CHAPTER-5

SIGNIFICANCE OF RESEARCH

Research inculcatesscientific and inductive thinking and it promotes the development of

logical habits of thinkingand organisation. The role of research in several fields of applied

economics, whether related to business orto the economy as a whole, has greatly increased in

modern times.

The increasingly complex nature of business and government has focused attention on the use ofresearch in solving operational problems. Research, as an aid to economic policy, has gainedadded importance, both for government and business.

Research provides the basis for nearly all government policies in our economic

system.

For instance, governments budgets rest in part on an analysis of the needs and desires of thepeople and on the availability of revenues to meet these needs. The cost of needs has to beequated to probable revenues and this is a field where research is most needed. Through researchwe can devise alternative policies and can as well examine the consequences of each of thesealternatives.

Decision-oriented research:

Is always for the need of a decision maker and the researcher in this case is not free to embarkupon research according to his own inclination. Operations research is an exampleof decision oriented research since it is a scientific method of providing executive departmentswith a quantitative basis for decisions regarding operations under their control.

Research has its special significance in solving various operational and planning problems

of business and industry.

Operations research and market research, along with motivational research,

are considered crucial and their results assist, in more than one way, in taking business decisions.Market research is the investigation of the structure and development of a market for the purposeof formulating efficient policies for purchasing, production and sales. Operations research refersto the application of mathematical, logical and analytical techniques to the solution of businessproblems of cost minimisation or of profit maximisation or what can be termed as optimisationproblems.


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Motivational research of determining why people behave as they do is mainly concerned withmarket characteristics.

CRITERIA FOR A GOOD RESEARCH

Whatever may be the types of research works and studies, one thing that is important is that theyall meet on the common ground of scientific method employed by them. One expects scientificresearch to satisfy the following criteria:

1. The purpose of the research should be clearly defined and common concepts be used.

2. The research procedure used should be described in sufficient detail to permit anotherresearcher to repeat the research for further advancement, keeping the continuity of whathas already been attained.

3. The procedural design of the research should be carefully planned to yield results that areas objective as possible.

4. The researcher should report with complete frankness, flaws in procedural design andestimate their effects upon the findings.

5. The analysis of data should be sufficiently adequate to reveal its significance and themethods of analysis used should be appropriate. The validity and reliability of the datashould be checked carefully.

6. Conclusions should be confined to those justified by the data of the research and limited tothose for which the data provide an adequate basis.

7. Greater confidence in research is warranted if the researcher is experienced, has a goodreputation in research and is a person of integrity.

In other words, we can state the qualities of a good research as under:

1. Good research is systematic:

It means that research is structured with specified steps to

be taken in a specified sequence in accordance with the well defined set of rules. Systematiccharacteristic of the research does not rule out creative thinking but it certainly does rejectthe use of guessing and intuition in arriving at conclusions.

2. Good research is logical:

This implies that research is guided by the rules of logicalreasoning and the logical process of induction and deduction are of great value in carrying


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out research. Induction is the process of reasoning from a part to the whole whereasdeduction is the process of reasoning from some premise to a conclusion which followsfrom that very premise. In fact, logical reasoning makes research more meaningful in thecontext of decision making.


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CHAPTER-6

MY INPUTS IN THE REPORT

INTRODUCTION

This particular dissertation report carries the employee satisfaction survey for the individuals

working in a banking industry.

The report has been made using the steps as follows,

STEP 1:

DEFINING A RESEARCH

Usually for a research to start with, we are required to have a defined research base on which we

can lay our foundation & work on it,

Selecting the research topic should be done while keeping the following factors in mind,

Subject which is overdone should not be normally chosen, for it will be a difficult task tothrow any new light in such a case.

Controversial subject should not become the choice of an average researcher.

Too narrow or too vague problems should be avoided.

The subject selected for research should be familiar and feasible so that the relatedresearch material or sources of research are within ones reach. Even then it is quitedifficult to supply definitive ideas concerning how a researcher should obtain ideas forhis research.

.

As in this case our basis for the research is Employee Satisfaction Survey in

Banking Industry.


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ESSENTIALNESS OF DEFINING A RESEARCH

Quite often we all hear that a problem clearly stated is a problem half solved. This statementsignifies the need for defining a research problem. The problem to be investigated must bedefined unambiguously for that will help to discriminate relevant data from the irrelevant ones.

A proper definition of research problem will enable the researcher to be on the track whereas anill-defined problem may create hurdles.

TECHNIQUE INVOLVED IN DEFINING A PROBLEM

. The technique for the purpose involves the undertaking of the following steps generally oneafter the other:

(i) Statement of the problem in a general way.(ii) Understanding the nature of the problem.

(iii)Surveying the available literature.(iv) Developing the ideas through discussions.(v) Rephrasing the research problem into a working proposition.


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STEP 2:

SAMPLING

It needs to be emphasised that when the universe is a small one, it is no use resortingto a sample survey. When field studies are undertaken in practical life, considerations of timeand cost almost invariably lead to a selection of respondents i.e., selection of only a few items.The respondents selected should be as representative of the total population as possible in orderto produce a miniature cross-section. The selected respondents constitute what is technicallycalled a sample and the selection process is called sampling technique. The survey soconducted is known as sample survey..

IMPLICATIONS OF A SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It refers to thetechnique or the procedure the researcher would adopt in selecting items for the sample. Sample design

may as well lay down the number of items to be included in the sample i.e., the size of thesample. Sample design is determined before data are collected. There are many sample designsfrom which a researcher can choose. Some designs are relatively more precise and easier toapply than others. Researcher must select/prepare a sample design which should be reliable andappropriate for his research study.

STEPS IN SAMPLE DESIGN

While developing a sampling design, the researcher must pay attention to the following points:

(i)Size of sample:

This refers to the number of items to be selected from the universe toconstitute a sample. This a major problem before a researcher. The size of sample shouldneither be excessively large, nor too small. It should be optimum. An optimum sample is

one which fulfills the requirements of efficiency, representativeness, reliability and flexibility.While deciding the size of sample, researcher must determine the desired precision as alsoan acceptable confidence level for the estimate.

(ii) Parameters of interest:

In determining the sample design, one must consider the questionof the specific population parameters which are of interest. For instance, we may be


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interested in estimating the proportion of persons with some characteristic in the population,or we may be interested in knowing some average or the other measure concerning thepopulation. There may also be important sub-groups in the population about whom we wouldlike to make estimates. All this has a strong impact upon the sample design wewould accept.

(iii) Budgetary constraint:

Cost considerations, from practical point of view, have a majorimpact upon decisions relating to not only the size of the sample but also to the type ofsample. This fact can even lead to the use of a non-probability sample.

(iv) Sampling procedure:

Finally, the researcher must decide the type of sample he will usei.e., he must decide about the technique to be used in selecting the items for the sample. In

fact, this technique or procedure stands for the sample design itself. There are severalsample designs (explained in the pages that follow) out of which the researcher mustchoose one for his study. Obviously, he must select that design which, for a given samplesize and for a given cost, has a smaller sampling error.

CHARACTERISTICS OF A GOOD SAMPLE DESIGNFrom what has been stated above, we can list down the characteristics of a good sample designasunder:

(a) Sample design must result in a truly representative sample.

(b) Sample design must be such which results in a small sampling error.

(c) Sample design must be viable in the context of funds available for the research study.

(d) Sample design must be such so that systematic bias can be controlled in a better way.

(e) Sample should be such that the results of the sample study can be applied, in general, for

the universe with a reasonable level of confidence.

DIFFERENT TYPES OF SAMPLE DESIGNS

On the representation basis, the sample may be probability sampling or it may be non-probabilitysampling.


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Probability sampling:Is based on the concept of random selection, whereas non-probability sampling is non-randomsampling. On element selection basis, the sample may be either unrestricted or restricted. Wheneach sample element is drawn individually from the population at large, then the sample sodrawn is known as unrestricted sample, whereas all other forms of sampling are covered under

the term restricted sampling. The following chart exhibits the sample designs as explainedabove. Thus, sample designs are basically of two types viz., non-probability sampling andprobability sampling. We take up these two designs separately.

Non-probability sampling:

Non-probability sampling is that sampling procedure which doesnot afford any basis for estimating the probability that each item in the population has of beingincluded in the sample.

Quota sampling

Is also an example of non-probability sampling. Under quota sampling the interviewers aresimply given quotas to be filled from the different strata, with some restrictions on how they areto be filled.


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STEP 3

DATA COLLECTION

The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the

researcher should keep in mind two types of data viz., primary and secondary. Theprimary dataare those which are collected afresh and for the first time, and thus happen to be original incharacter.Thesecondary data, on the other hand, are those which have already been collected by someoneelse and which have already been passed through the statistical process. The researcher wouldhave to decide which sort of data he would be using (thus collecting) for his study andaccordingly he will have to select one or the other method of data collection. The methods ofcollecting primary and secondary data differ since primary data are to be originally collected,while in case of secondary data the nature of data collection work is merely that of compilation.We describe the different methods of data collection, with the pros and cons of each method.

COLLECTION OF PRIMARY DATA

We collect primary data during the course of doing experiments in an experimental research butin case we do research of the descriptive type and perform surveys, whether sample surveys orcensus surveys, then we can obtain primary data either through observation or through directcommunication with respondents in one form or another or through personal interviews.* This,in other words, means that there are several methods of collecting primary data, particularly insurveys and descriptive researches. Important ones are:

(i) Observation method(ii) Interview method

(iii)Through questionnaires,(iv)Through schedules

Other methods which include

(a) warranty cards(b) distributoraudits(c) pantry audits(d) consumer panels(e) using mechanical devices(f) through projective techniques

(g) depth interviews(h) content analysis.


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COLLECTION OF DATA THROUGH QUESTIONNAIRES

This method of data collection is quite popular, particularly in case of big enquiries. It is beingadopted by private individuals, research workers, private and public organisations and even by

governments.In this method a questionnaire is sent (usually by post) to the persons concerned with a request toanswer the questions and return the questionnaire. A questionnaire consists of a number ofquestions printed or typed in a definite order on a form or set of forms. The questionnaire ismailed to respondents who are expected to read and understand the questions and write down thereply in the space meant for the purpose in the questionnaire itself. The respondents have toanswer the questions on their own.The method of collecting data by mailing the questionnaires to respondents is most extensivelyemployed in various economic and business surveys. The merits claimed on behalf of thismethod areas follows:

1.There is low cost even when the universe is large and is widely spread geographically.

2. It is free from the bias of the interviewer; answers are in respondents own words.

3. Respondents have adequate time to give well thought out answers.

4. Respondents, who are not easily approachable, can also be reached conveniently.

5 Large samples can be made use of and thus the results can be made more dependable andreliable.

The main demerits of this system can also be listed here:1. Low rate of return of the duly filled in questionnaires; bias due to no-response is oftenindeterminate.

2. It can be used only when respondents are educated and cooperating.

3. The control over questionnaire may be lost once it is sent.

4. There is inbuilt inflexibility because of the difficulty of amending the approach once

questionnaires have been despatched.

5. There is also the possibility of ambiguous replies or omission of replies altogether to certainquestions; interpretation of omissions is difficult.

6. It is difficult to know whether willing respondents are truly representative.

7. This method is likely to be the slowest of all.


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Before using this method, it is always advisable to conduct pilot study (Pilot Survey) for testingthe questionnaires. In a big enquiry the significance of pilot survey is felt very much. Pilotsurvey is infact the replica and rehearsal of the main survey. Such a survey, being conducted byexperts, brings to the light the weaknesses (if any) of the questionnaires and also of the survey

techniques. From the experience gained in this way, improvement can be effected.

Main aspects of a questionnaire:

Quite often questionnaire is considered as the heart of a survey operation. Hence it should bevery carefully constructed. If it is not properly set up, then the survey is bound to fail. This factrequires us to study the main aspects of a questionnaire viz., the general form, question sequenceand question formulation and wording. Researcher should note the following with regard to thesethree main aspects of a questionnaire:

1. General form:

So far as the general form of a questionnaire is concerned, it can either be structured orunstructured questionnaire. Structured questionnaires are those questionnaires in which there aredefinite, concrete and pre-determined questions.

Structured questionnaires

These are simple to administer and relatively inexpensive to analyse. The provision of alternativereplies, at times, helps to understand the meaning of the question clearly.

2. Question sequence:

In order to make the questionnaire effective and to ensure quality to thereplies received, a researcher should pay attention to the question-sequence in preparing thequestionnaire.

3. Question formulation and wording:

With regard to this aspect of questionnaire, the researcher should note that each questionmust be very clear for any sort of misunderstanding can do irreparable harm to a survey.Question should also be impartial in order not to give a biased picture of the true state ofaffairs. Questions should be constructed with a view to their forming a logical part of awell thought out tabulation plan. In general, all questions should meet the followingstandards

(a) should be easily understood


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(b) should be simple i.e., should convey only one thought at a time(c) should be concrete and should conform as much as possible to the respondents way ofthinking.

ESSENTIALS OF A GOOD QUESTIONNAIRE

To be successful, questionnaire should be comparatively short and simple i.e., the size of thequestionnaire should be kept to the minimum.

Questions should proceed in logical sequence moving from easy to more difficult questions.Personal and intimate questions should be left to the end.

Technical terms and vague expressions capable of different interpretations should be avoided ina questionnaire.

Questions may be dichotomous (yes or no answers), multiple choice (alternative answers listed)or open-ended. The latter type of questions are often difficult to analyse and hence should beavoided in a questionnaire to the extent possible.

There should be some control questions in the questionnaire which indicate the reliability of therespondent.

Questions affecting the sentiments of respondents should be avoided. Adequate space foranswers should be provided in the questionnaire to help editing and tabulation

Finally, the physical appearance of the questionnaire affects the cooperation the researcher

receives from the recipients and as such an attractive looking questionnaire, particularly in mailsurveys, is a plus point for enlisting cooperation.


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STEP 4

PROCESSING OF THE DATA

1. Editing:

Editing of data is a process of examining the collected raw data (specially in surveys) todetect errors and omissions and to correct these when possible. As a matter of fact,editing involves a careful scrutiny of the completed questionnaires and/or schedules.Editing is done to assure that the data are accurate, consistent with other facts gathered,uniformly entered, as completed as possible and have been well arranged to facilitatecoding and tabulation.

With regard to points or stages at which editing should be done, one can talk of field editing andcentral editing.

2. Coding:

Coding refers to the process of assigning numerals or other symbols to answers so thatresponses can be put into a limited number of categories or classes. Such classes shouldbe appropriate to the research problem under consideration. They must also possess thecharacteristic of exhaustiveness (i.e., there must be a class for every data item) and alsothat of mutual exclusively which means that a specific answer can be placed in one andonly one cell in a given category set. Another rule to be observed is that ofunidimensionality by which is meant that every class is defined in terms of only oneconcept.

3. Classification:

Most research studies result in a large volume of raw data which must be reduced intohomogeneous groups if we are to get meaningful relationships. This fact necessitatesclassification of data which happens to be the process of arranging data in groups orclasses on the basis of common characteristics. Data having a common characteristic areplaced in one class and in thisway the entire data get divided into a number of groups orclasses.


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STATISTICAL TOOLS USED IN DATA ANALYSIS

The data, after collection, has to be processed and analysed in accordance with the outline laiddown for the purpose at the time of developing the research plan. This is essential for a scientificstudy and for ensuring that we have all relevant data for making contemplated comparisons and

analysis. Technically speaking, processing implies editing, coding, classification and tabulationof collected data so that they are amenable to analysis.

MEASURES OF CENTRAL TENDENCYMeasures of central tendency (or statistical averages) tell us the point about which items have atendency to cluster. Such a measure is considered as the most representative figure for the entiremass of data. Measure of central tendency is also known as statistical average. Mean, median andmode are the most popular averages. Mean, also known as arithmetic average, is the mostcommon measure of central tendency and may be defined as the value which we get by dividingthe total of the values of various given items in a series by the total number of items. we canwork it out as under:

SUM OF ALL OBSERVATIONNO. OF OBSERVATION

X1+X2+X3+X4+X55

Mean is the simplest measurement of central tendency and is a widely used measure. Its chiefuse consists in summarising the essential features of a series and in enabling data to becompared. It is amenable to algebraic treatment and is used in further statistical calculations. It isa relatively stable measure of central tendency. But it suffers from some limitations viz., it isunduly affected by extreme items; it may not coincide with the actual value of an item in a series,

and it may lead to wrong impressions, particularly when the item values are not given with theaverage. However, mean is better than other averages, specially in economic and social studieswhere direct quantitative measurements are possible.


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CHAPTER-7

INPUTS FOR THE RESEARCH

1. Our sample size was Fifty employees per organization i. e from The Royal Bank ofScotland & from The Andhra Bank.

2. These employees were carefully selected with a suitable mixture of all grades & theresults were compared accordingly.

3. The pre-set questionnaires were distributed among all the employees/ sample.

4. The information obtained was then converted into statistical form for further calculations.

5. The data was then arranged & the level of employee satisfaction was analysed as per the

result of the survey obtained.

6. The employees were selected from all the bands that come under the officer grade in boththe organizations.

7. For Royal Bank of Scotland:

The officer band starts from grade H followed by I, J , K ,L hence it was made sure that thesample size comprises of individuals from all brackets.

8. Similarly for Andhra Bank:The sample comprised of individuals from grade 2 officer, Grade 1 & finally the manageriallevel.

9. The data from both the organizations was thus converted in tabular form & pie- chart.

10. The results were compiled as well as compared so as to have a comparative analysis ofhow the employee satisfaction differs of a Private Bank differs from a Public SectorBank.

11. An average was taken, so as to calculate the affirmation of the employees to the questiosput to them & accordingly the results were calculated.

I have mixed emotions about confidential or secret surveys. On the one hand, I want theemployees comfortable responding in a truthful manner. On the other, the reason employers doemployee satisfaction or customer satisfaction surveys is to telegraph their openness to employeeinput. The second is to genuinely understand what is on their employees minds.While I recognize that some employers have differing motivations, companies that areemployee-oriented, are unlikely to use the information gathered negatively. If you start with an


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open process, employees will learn that their employer can be trusted to use the information intheir best interests.

I always explain to employees that my purpose in talking with them is to share information forthe common good. Consequently, my promise about confidentiality is that I will use the

information to assist the company to make positive progress.You can use a simple paper and pencil instrument, an online survey, or a much moresophisticated process to assess your employees' satisfaction.

Some fundamentals for successful, trustworthy employee satisfaction surveys and focus groupsexist in each instance. I have reviewed few important factors here.


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CHAPTER-8

RESULT

The results for the survey are expressed below,

The below table shows the employees in both the banks in various departments which wereroped in for the survey for the Royal Bank of Scotland.

ROYAL BANK OF SCOTLANDGRADE

SEMPLOYEE

S CATEGORY TOTAL

H 20 NEW JOINEES/ FRESHERS

50

I 10 Sr. EMPLOYEES

J 8 SUPERVISORS

K 8 TEAM LEADERS

L 4 DEPT. HEADS

Employees roped in from Andhra Bank for the survey

ANDHRA BANK DISPERSIONTOTAL

2 30

CUSROMER

SERVICE

50

1 16 Sr. EMPLOYEES

MANAGERIAL 4 DEPT. HEADS

The employees were also counted on the duration for which they had worked in the

organization so as to understand their understanding of the organization.

The results of which are as follows:

DURATION RBS AB

> 3 MONTHS 4 0

3 MONTHS- 1Yr 7 1

1-3 Yrs 6 6

4-6 Yrs 3 4

7-10 Yrs 12 15


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< 10 Yrs 8 24


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The results for the survey are given as follows:

1. FOR THE ROYAL BANK OF SCOTLAND

THE ROYAL BANK OF SCOTLAND

S.No QUESTIONS

VERYSATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

VERYDISSATISFIED

TA

1 Salary 32 8 0 0 0

2 Benefits 45 3 2 0 0

3Connection between pay

and performance 42 5 3 0 0

4Security and

administration 15 20 12 5 3

5 options/pension plans 28 12 4 5 56 Workload 39 7 4 0 0

7 Flexibility of work hours 40 4 2 4 0

8Physical working

environment 42 7 1 0 0

9Opportunity foradvancement 47 3 0 0 0

10 Job security 27 10 6 7 0

11Ability to influence

decisions that affect you 10 2 33 5 0

12

Ability to influence day-

to-day company success 8 2 4 14 22

13Opportunity to use new

technologies 18 3 0 2 28

14Opportunity to work on

interesting projects 22 4 8 2 4

15

Access to company-sponsored training and

seminars 34 6 0 10 0

16Communication with

your supervisor 47 3 0 0 0

17Recognition receivedfrom your supervisor 46 4 0 0 0

18Your supervisor's

management capabilities 35 8 7 0 0


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2. FOR ANDHRA BANK

THE ANDHRA BANK

S.

No QUESTIONS

VERY

SATISFIED SATISFIED NEUTRAL DISSATISFIED

VERY

DISSATISFIED TA

1 Salary 13 26 6 2 1

2 Benefits 34 12 4 0 0

3Connection between pay

and performance 23 22 0 5 0

4Security and

administration 32 4 4 5 5

5 options/pension plans 44 6 0 0 0

6 Workload 38 6 4 2 0

7 Flexibility of work hours 42 5 3 0 0

8 Physical workingenvironment 30 8 7 5 0

9Opportunity foradvancement 25 3 8 2 12

10 Job security 42 5 0 3 0

11Ability to influence

decisions that affect you 19 4 0 5 22

12Ability to influence day-to-day company success 17 2 1 11 19

13Opportunity to use new

technologies 15 0 0 2 33

14

Opportunity to work on

interesting projects 22 1 2 0 25

15

Access to company-sponsored training and

seminars 19 7 5 3 16

16Communication with

your supervisor 27 13 6 3 1

17Recognition receivedfrom your supervisor 22 15 2 5 6

18Your supervisor's

management capabilities 29 11 5 0 4


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IN ROYAL BANK OF SCOTLAND:

ROYAL BANK OF SCOTLAND

VERYSATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

VERYDISSATISFIED

TOTAL

AVERAGE 32.05 6.74 4.77 3 3.44 50PERCENT 65.1 12.48 9.54 6 6.88 100

In the Royal Bank of Scotland, the results were quite positive & denoted that the

employees were really happy working in the organization.

Majority of the employees were highly satisfied with their jobs & had little complaints

whereas few of them were rated as satisfied.

Satisfaction was fairly in the departments which offered higher pay & incentives.

Moreover, the employees who were highly dissatisfied were on the context of security,

pension & use of

human resource- edited

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