Date: 16th

November 2009

ORGANISATION BEHAVIOUR - II

GROUP ASSIGNMENT

TEAM NAME

EKLAVYA

PROJECT ON

SUBMITTED BY

1) Mayur Mewada : 092129

2) Rakesh Dutta : 092139

3) Pramod Paswan : 092137

4) Samir Thakker : 092142

5) Dinesh Lutya : 092115

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1) Mahindra Finance, a subsidiary of Mahindra & Mahindra Ltd. A leading Non-Banking

Financial Company catering to the financing needs of vast populace residing the rural and

semi-urban areas of India. Mahindra tractor has 80% of total tractor market in India, and

is the only Indian company supplying tractor across the world. It has been incorporated in

1991, with single office at Mumbai and later second branch at Jaipur in 1993. Also, it is

India’s first NBFC. Now it has 436 offices across India including Head office, Zonal offices,

Area offices and Branch offices, having 4959 regular employees and many more on

contract basis.

The main products of Mahindra Finance are financing, tractor, cars, utility vehicle,

commercial vehicle and so on. Now we have also entered into Insurance, Housing

Finance, Mutual Fund, Personal Loan and Fixed Deposit. Now we have more than 1

million customers with total asset of Rs. 8,500 Crore.

Earlier Anand Mahindra was the chairman of Mahindra Finance later on Bharat Doshi

became the chairman and Uday Y. Phadke as Vice-Chairman. Ramesh Iyer is Managing

Director and V Ravi is CFO.

In the financial year 2008-09 its total income is Rs. 138466.19 lacs, having PBT Rs. 32563.03

lacs and PAT Rs. 21452.06 lacs.

Mahindra Finance has two subsidiaries, Mahindra Rural Housing Finance Ltd and

Mahindra Insurance Broker Ltd. The main purpose of Mahindra Rural Housing Finance

Ltd. is to provide housing loan to its primary customer .i.e. rural customer. Mahindra

Insurance Broker Ltd. Is concern with vehicle insurance, insurance on housing loan as well

as personal insurance.

SNL is the single best source for financial information on business sectors critical to the

global economy. SNL Financial collects, standardizes and disseminates all relevant

corporate, financial, market and M&A data — plus news and analysis — for the industries

cover: banking, financial services, insurance, real estate, energy and

media/communications.

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Since foundation in 1987, it continuously expanded it global operations, as well as the

scope and depth of coverage and products — all without compromising the standards of

quality and customer service that drive our success with our Four Core Tenets which are:

Accuracy (paramount of data quality), Relevance (unique characteristics of each sector),

Completeness (one-stop source for information) Timeliness (most current information

possible).

SNL Financial was originally founded as "S&L Securities" in New Jersey in 1987 with an

initial focus on the savings and loan industry. But state law would not permit the

incorporation of a non-bank with "S&L" in the official company name. So we replaced the

"&" with an "N" to create "SNL." And our universe soon expanded well beyond savings &

loans to the various business sectors we cover today.

As a result, leading investment banks, investment managers, corporate executives, ratings

agencies, government agencies, consulting firms, law firms and media such as The New

York Times, The Wall Street Journal, USA Today, Washington Post, Business Week,

Forbes and Fortune rely on SNL Financial for the best possible information on the

companies in our sectors.

It was founded in Hoboken, New Jersey by Reid Nagle and then it other six core board

member joint him. He is still serving as Chairman and Founder with the Mike Chinn as

President, Will Pappas Managing Director of Sales and Nate Haskins

Managing Director of Content.

It one subsidiary SNL Financial India Pvt. Ltd it has global reach spans ten offices

worldwide, with an ever-expanding workforce of more than 1,200 employees. Corporate

headquarters are in Charlottesville, Virginia, other locations include New York, New

Jersey, California, Colorado, Washington DC, Boston, India, Pakistan and the United

Kingdom.

In the financial year 2008-09, its PBT $ 126 million and PAT $ 90 million.

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2) The external environment which encroaches on Mahindra Finance is Industry, Market,

Human Resource, Technology, Economic Conditions, Government and Sociocultural

sectors and for SNL are Industry sector, International, Human Resource and Technology.

Taking each sector and elaborating how they are influencing to Mahindra Finance and

SNL are:

(a) Industry: It has many competitors, which includes TATA Finance, Citi Finance,

Shriram Finance, Muthoot Finance etc. Though they have limited number of products and

less operational locations but they are big competitors. To be always ahead, time-to-time

monitoring, analyzing and accordingly changing the strategies. SNL has many

competitors, Thomson, Bloomberg, Reuters though these are the big name as competitor

but SNL Financial has its own market share as well as it is more focused on the customers.

It does makes move (react) as there competitor action but it few customers demand the

change in data set or more information than it will react to that. So it more a Customer

driven base company compare to it Industry base.

(b) Market: The customer’s taste is changing rapidly and to match their taste we

changes our strategies accordingly. Now the rural customers are also interested in UV, CV,

Two-wheeler, insurance, mortgage etc, rather than traditional trend of buying Tractor.

(c) Human Resource: Skilled workforce plays very significant role for any organization. In

the same concern Mahindra Finance always hire skilled people or regular training in

respective period to cope up with competitors. We have given this task to best HR

consultancy companies like Mafoi, Teamlease and NIS Sparta for providing us skilled and

educated workforce. In SNL, to remain an industry leader, it hires most talented,

motivated people to expand its products, improve its business processes and implement

new technologies. It plays an integral role in a fast-paced, growing company with a

demanding, blue-chip roster of clients, all while enjoying a casual workplace.

(d) Technology: Though we are not in production but we cannot ignore technology. It will

have made a vast difference for not using technology. Since we have 400+ offices across

India, communication, data flow, business flow, reports, policy, guidelines and strategies

need to flow form head office to branch level and vice-versa. This will also build better

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relationship with customers. Collection department have handheld machine for EMI

collection in field, having updated details of customers, leads less number of NPA’s.

Technology is high concern for SNL as it in the data mining business. It is majorly effected

by the any change in technology as there are about 10 office across the globe which is

connected though high speed network and storage systems. All communication, data flow,

reports, policy, guidelines and strategies need to flow between the all branches.

(e) Economic Conditions: Being a NBFC this factor is very influencive for us. Recession

leads growth in inflation which leads more interest rate, which directly impact on our

business. People in these conditions hesitate to invest or buy goods and services. Previous

year’s recession had brought down our business, comparative other year’s.

(f) Government: We are very restricted to follow RBI norms and policy. Change in any rule

will lead impact on our business. In the same regard for opening any branch we need to

follow local government policy for lease and license agreement.

(g) Sociocultural: Being a NBFC, the major customers are rural, which have very strong

beliefs and religion bonding. They have strong belief regarding Mahindra name, serving

since 1947. They have good relationship with this name and share their experience with

their ancestors.

(h) International: As SNL deal in International Market so the factor like Currency Exchange

and Global rescission effect it operations. Global rescission has positively effect as it has

increase the demand of it products.

Taking these environmental sectors and comparing with few year back, we came to know

that few are the sector which influence very much. Earlier we have less number of

competitors now we have many. Customers taste had changed a lot during these years;

more and more people are now concern with having their own vehicle. Earlier only few

people have their own vehicle. Technology has changed, earlier we don’t have every

branch connected to head office, and now most of all are connected.

More and all we have large number of external environment in Mahindra Finance but they

slowly change and these are foreseeable or predictable. There we can say that Mahindra

Finance is a Complex and Stable organization which has low-moderate uncertainty, as per

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the environment complexity framework. As compare to Mahindra Finance, SNL has stable

and complex. Since the external environment is few but effects rapidly.

Simple + Stable = Low

Uncertainty

Complex + Stable =

Low-Moderate

Uncertainty

SNL Financial

Simple + Unstable = high-

Moderate Uncertainty

Mahindra Finance

Complex + Unstable

= High Uncertainty

3) Industry is the common external environment sector which influences both SNL Financial

Ltd. and Mahindra Finance.

Market doesn’t influence to SNL as they have selected corporate clients which need

selected resources from SNL. Whereas Mahindra Finance has vast number of customer

from small, medium and large corporate having different preference and taste which

influence a lot.

Technology and Human resource will influence to both, whereas Government,

Sociocultural and Economic Conditions will only cause effect on Mahindra Finance and

SNL will remain same.

International sector will impact on SNL, being a multinational. It has many international

competitors, leads to influence it. This sector will not effect to Mahindra Finance, as it has

its expansion in India itself.

4) From the goals of SNL Financial, we can analyze that this company is very adaptive for

new technologies coming in market as well as this company improving in their services

given to customers as per the environment changes and demand created.

Mahindra Finance is also adaptive in nature but as the business not requires high

technology comparing to SNL Financial so they are applying pilot projects first as when

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they think to change and after analyzing the results they are applying the changes in

systems.

SNL is customer oriented so their strategies are not changing as the environment changes

while Mahindra Finance needs to change their strategies as per environment.

5)

SNL Financial Structure

DIR

US DIR

PK

DIR

INDIA

DIR

US

DIR

US

DIR

US

CHAIRPERS

ON

PRESIDENT

MD

SALES

MD

INDUSTRY

RESEARCH

MD

CONTENT

MANAGEMENT

MD

PRODUCT

MANAGEMENT

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Mahindra Finance Structure

6) SNL follows the Multi-focused grouping where as Mahindra Finance follows divisional

grouping as there integrating roles between organizational structures. In Mahindra

Finance each departments are based on product wise, FES (Farm Equipment Sector –

Tractor), Utility Vehicle, Commercial Vehicle, Two Wheeler, Insurance, Home Loan etc.,

therefore it is divisional grouping. In SNL, for example, accounts analysts also perform the

analysis of capital market. Hence it is cross-functional in structure. As both the

organization have integrity role, therefore there is no need to redesign structure.

7) In 1987 SNL was founded in New Jersey by Reid Nagle and began the coverage of the

Thrift industry with just few members. During the first 10 years, company has expanded

gradually and moved to Charlottesville, Va., began coverage of Banks and acquired Bank

M&A Newsletter as well as launched non-bank financial sectors and Real Estate.

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Released complete regulatory data on banks and thrifts. During these year all the

operation are taken care by US manager and team members. Till this time, it seems to

vertical chain of commands. Major decision might taken by C&F. Company is growing

and may doing experiment with the structures.

In next 10 year, company has expanded its operations and created the post of President

and mean time in 2002 three of Board Member become the managing Director of sale

and accounting as well as started outsourcing its operation in 2003. They have started the

operation in India and two year later started the operation in Pakistan. Organization of

India has become back office of SNL Financial LLP. They has passed it all it major

operation to India office created the position of Director and Asst. Director then down the

line hierarchy as well as delegated the authority same thing done for Pakistan too. Now

the organization structure change drastically.

While taking Mahindra Finance, it has been established in 1991 with 15 employees at

Mumbai. It has initially one office and later included one more at Jaipur. Since it was the

beginning of Mahindra the structure were more Hierarchical. Only one was on the top

management and rest all are doing all activities like, business development, accounts,

marketing, sales, recruitment, collection etc. So, all are cross-functional in structure.

Later on development of Mahindra Finance it has been split into vertical structure as

product head, department head and top management.

8) Culture of Mahindra Finance is Adaptability Culture. We only focus on the external

environment through flexibility and change to meet customer needs. The culture

encourages entrepreneurial values, norms, and beliefs that support the capacity of

Mahindra Finance to detect, interpret, and translate signals from the environment into

new behavior responses.

Most Telling Stories: In 1999 there was a Regional Head in Lucknow named Mr. B K Sinha

has established more than 15 branches across the state U.P, in that respective year. He

also did more than 500 businesses in a month. That was record breaking achievement of

making business and still no one had ever reached that mark. This is the revolutionary

achievement made Mahindra Finance a brand image in U.P. also reaches more customers

by this achievement.

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This famous story, which use to tell to any new employee, motivation for existing

employee.

Rites and Ceremonies: Every year Mahindra Finance use to celebrate Annual Convention

at any famous place in India. On that occasion company use to recognize the best branch,

best region, best business developer, best HR executive, best IT executive, best product

seller in tractor, CV, UV, mutual fund, home loan etc. In addition there are some also

award are there like, nil NPA branch, best collection, debt recovery etc. There are also

regional level awards are there like best employee, productive employee and disciplinable

employee.

SNL has clan culture as primary focus on involvement and participation of members and

on rapidly changing expectation from the external environment. SNL focus on the need of

employees with high performance with greater commitment to the organization

Most Telling Story and Rites and Ceremonies:

Yes, it is Bill i.e. William Shulby whom we give credit for having SNL Financial in India in

2oo3. SNL Financial LLP thought of outsource it few operation and they finally selected

Hi-Tech Infotech Pvt ltd run by Pranav Bhanthia. R. Bhanthia handeled this project who

was suspended IT commissioner as Pranav Bhanthia was out of country who was

suspended IT commissioner.

Any way the operation was started in India with 3 managers and few analysts about 30.

Instead of hard work and dedication, we were getting really less which had created

frustration among us. When the things seem not changing our managers have talked with

US counterpart unofficially and informed about the status.

SNL financial send the man of it mission Bill who came here as trainer but actually he is

partner of SNL. He found whatever money they send for us (analyst and mangers) from

that Mr. R.Bhanthia take his cut as on above of it this commission from SNL. Some time

he is not giving the facility for which SNL has paid for to Hi-Tech Infontech/ Mr.

R.Bhanthia.

Analyzing all situations Bill had talk to our Chairman and founder about same as well as

also explained the future potential of creating his own back office here.

Bill along with other manager has convinced Chairman and Founder and we have SNL

Financial India Pvt. Ltd.

Hence we had our own organization started on 31st August 2004 which we celebrate as D

Day.

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We organize inter department cricket match every six month.

9) Five ways in which middle managers can contribute to organization building and

maintenance:

a. Initiative: Middle managers should be initiative in adopting change in strategy,

authority, structure, etc to convince the followers to adapt and implement

successfully.

b. Creative in nature: Top level management can describe strategy or goal in broad

sense, its middle level manager’s responsibility to imply with his own creativity to

simplifies and easier way to understand as per requirement of lover level

employees.

c. Flexible: As per today’s complex environment, every employee should be flexible

to adopt for changes as change is only permanent. It’s crucial for middle manager

to be flexible with top management as change in strategy and with lower

management as open for ideas and implement of new ways rather than specified.

d. Information flow: As in organization, generally information flow from top to

bottom and suggestion flow from lower to top. Middle managers are key element

for both to transact, hence it should be capable of communication skill and aware

of changes in organization as reliable source for lower management.

e. Professionalism: Middle managers should be professional in his work, he should

differentiate his work and emotion with capability of comparison and analytical of

problem. Examples set by him as lead in nature.