Final Projectpriyanka

CHAPTER NO: 01
INTRODUCTION
A STUDY ON ORGANISATIONAL STRUCTURE AND EMPLOYEE ENGAGEMENT IN SBI
INTRODUCTION
PART A: ABOUT THE SPECIALIZATION

Human resource management (HRM or HR) is the strategic approach to the effective management of
people in a company or organization such that they help their business gain a competitive advantage. It is
designed to maximize employee performance in service of an employer's strategic objectives. Human
resource management is primarily concerned with the management of people within organizations,
focusing on policies and systems. HR departments are responsible for overseeing employee-
benefits design, employee recruitment, training and development, performance appraisal, and reward
management, such as managing pay and benefit systems. HR also concerns itself with organizational
change and industrial relations, or the balancing of organizational practices with requirements arising
from collective bargaining and governmental laws.
The overall purpose of human resources (HR) is to ensure that the organization is able to achieve success
through people. HR professionals manage the human capital of an organization and focus on
implementing policies and processes. They can specialize in finding, recruiting, training, and developing
employees, as well as maintaining employee relations or benefits. Training and development
professionals ensure that employees are trained and have continuous development. This is done through
training programs, performance evaluations, and reward programs. Employee relations deals with the
concerns of employees when policies are broken, such as cases involving harassment or discrimination.
Managing employee benefits includes developing compensation structures, parental leave programs,
discounts, and other benefits for employees. On the other side of the field are HR generalists or business
partners. These HR professionals could work in all areas or be labor relations representatives working
with unionized employees.
HR is a product of the human relations movement of the early 20th Century, when researchers began
documenting ways of creating business value through the strategic management of the workforce. It was
initially dominated by transactional work, such as payroll and benefits administration, but due
to globalization, company consolidation, technological advances, and further research, HR as of
2015 focuses on strategic initiatives like mergers and acquisitions, talent management, succession
planning, industrial and labor relations, and diversity and inclusion. In the current global work
environment, most companies focus on lowering employee turnover and on retaining the talent and
knowledge held by their workforce. New hiring not only entails a high cost but also increases the risk of a
new employee not being able to adequately replace the position of the previous employee. HR
INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 2

departments strive to offer benefits that will appeal to workers, thus reducing the risk of losing employee
commitment and psychological ownership
Business function
Dave Ulrich lists the functions of HR as: aligning HR and business strategy, re-engineering organization
processes, listening and responding to employees, and managing transformation and change.
At the macro-level, HR is in charge of overseeing organizational leadership and culture. HR also ensures

compliance with employment and labor laws, which differ by geography, and often oversees health,
safety, and security. Based on the geographic location, there are various laws in place. There are several
federal laws that are crucial for HR managers to be familiar with in order to protect both their company
and its employees. Important federal laws and regulations include The Fair Labor Standards Act, which
includes establishing a minimum wage and protecting the right for certain workers to earn overtime.
The Federal Civil Rights Law protects against discrimination and prohibits making any hiring or firing
decision based on race, age, sex, and gender. The Family and Medical Leave Act gives eligible
employees up to twelve weeks of unpaid leave for family and medical reasons. Ensuring the company is
compliant with all laws and regulations is an important aspect of HR and will protect the company from
any sort of 'legal liability'. In circumstances where employees desire and are legally authorized to hold
a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the
employee's representatives (usually a labor union). Consequently, HR, usually through representatives,
engages in lobbying efforts with governmental agencies (e.g., in the United States, the United States
Department of Labor and the National Labor Relations Board) to further its priorities.

Human Resource Management has four basic functions: staffing, training and development, motivation,
and maintenance. Staffing is the recruitment and selection of potential employees, done through
interviewing, applications, networking, etc. There are two main factors to staffing: attracting talented
recruits and hiring resources. HR Managers must create detailed recruitment strategies and have a plan of
action to put forward when recruiting. Next, managers can put strategies into place through hiring
resources, by extending out to find the best possible recruits for the team. Recruiting is very competitive
since every company wants the best candidates. Using tactics such as mass media can grab the attention
of prospective recruits. Training and development is the next step and involves a continuous process of
training and developing competent and adapted employees. Here, motivation is seen as key to keeping
employees highly productive. This includes employee benefits, performance appraisals, and rewards.
Employee benefits, appraisals, and rewards are all encouragements to bring forward the best employees.
The last function, maintenance, involves keeping the employees' commitment and loyalty to the
organization. Some businesses globalize and form more diverse teams. HR departments have the role of
making sure that these teams can function and that people can communicate across cultures and across
borders. The discipline may also engage in mobility management, especially for expatriates; and it is
frequently involved in the merger and acquisition process. HR is generally viewed as a support function
to the business, helping to minimize costs and reduce risk.
In startup companies, trained professionals may perform HR duties. In larger companies, an entire
functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and
functional leadership engaging in strategic decision-making across the business. To train practitioners for

the profession, institutions of higher education, professional associations, and companies have established

programs of study dedicated explicitly to the duties of the function. Academic and practitioner
organizations may produce field-specific publications. HR is also a field of research study that is popular
within the fields of management and industrial/organizational psychology, with research articles
appearing in a number of academic journals, including those mentioned later in this article.
One of the frequent challenges of HRM is dealing with the notion of unitarism (seeing a company as a
cohesive whole, in which both employers and employees should work together for a common good) and
securing a long-term partnership of employees and employers with common interests.
Characteristics of human resource management
 HRM recruits: Human resource management (HRM) recruits/hires people to fill up the vacant
positions of the organization.
 Tests and interviews: HRM take various tests and interviews to select people.
 Communicate with top management: HRM tries to communicate with top management in helping
to formulate strategies to achieve organizational goal.
 Arranges training: HRM gives or arranges training programs to improve the skills of the employees.
 Evaluates the performance: HRM evaluates the performance of the employees. On this basis he
gives promotion.
 Exit interview: HRM takes exit interview when an employee quits his job.
 Collect various suggestions: HRM tries to collect various suggestions from the employees.
 Helps organization’s top management to implement various techniques: HRM helps the
organizational top management in implementing various techniques to help the organization to go
ahead.
 Arrange various workshops: HRM can arrange various workshops to increase the knowledge of the
employees.
 Arranges meetings: HRM arranges various meetings and seminars to discuss the problems that the
employees face in the organization.
 Takes various precautions: HRM takes various precautions to prevent negligent hiring.
 Gives job specification of employee: HRM gives the job specification of every employee and the
requirements that an employee need to do it.
 Does job enrichment: HRM does various job enrichment, job rotation, job enlargement and
motivates the employees.

 Develop the relationship between labor and management: HRM gives support to develop and
maintain cordial relationship it’s between labor and management .
NEED FOR HUMAN RESOURCE MANAGEMENT
1. For Good Industrial Relations:

There is large spread unrest, labour- management disputes, lack of trust in each other, increasing
expectations of workers, growing of militancy in trade unions etc. These factors have generated a gap
among workers and managements. Both sides are blaming of exploitation by the other side. In the
absence of cordiality in an organisation, the performance of workers is adversely affected.
HRM approach is needed to bring proper understanding among workers and management. The workers
are trained and developed to meet their individual and organisational objectives. The workers are made to
understand that various managerial actions will assist them in achieving their aspirations and
organisation’s goal.
2. Create Organisational Commitment:

There is a humanisation of work environment in industrially advanced countries like Japan, U.S.A., and
Germany etc. Globalisation of economy has exposed Indian industries to international competition. An
improvement in efficiency and quality of work can come only when workers develop organisational
commitment. HRM approach helps in creating a sense of pride for the organisation among the employees.
4. Meeting with Changing Environment:

The business environment is changing rapidly. Technological improvements have revolutionised
production processes. Automation has been introduced in office operations. Good communication
methods have revolutionised important areas of business.
Therefore, there is a need to cope with new and changing situation. The operational efficiency of workers
must cope up with a revolutionary change in the technology which necessitates a new approach to
manpower.
5. Change in Political Philosophy:

Political philosophy has also undergone a substantial change all over the world. The new approach is to
develop human resources properly for making their better use. In India, Central Government has created a
separate ministry as Human Resource Development and put it under a Senior Cabinet Minister.

This shows the importance given to human resources in India, which opened up a door for a fresh
approach to human resource development in the industrial sector too.
6. Enhanced Pressure On Employees:

The technological innovations have made possible the use of sophisticated machines. The installation,
monitoring of machines, maintenance and controlling of operations etc., require large number of trained
and skillful personnel.
Technicians, repairers and service people are also necessary. The more the technical development and
automation, the more would be the dependence on human beings. There should, therefore, be greater need
for humane approach to manpower. Similarly, use of more capital intensive methods would result in
greater productivity of men necessitating greater motivating and greater human resources approach to
management.
7. Meeting Research and Development Requirements:

Fresh initiatives and emphasis on research and development in the realm of industry also led to a new
policy of human resource development to cope with the increasing demand for technically capable
people. As a result of this, a need arose for a new approach to human resources

SCOPE OF HRM:
 HRM in Personnel Management: This is typically direct manpower management that involves

manpower planning, hiring (recruitment and selection), training and development, induction and
orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity.
The overall objective here is to ascertain individual growth, development and effectiveness which
indirectly contribute to organizational development.
It also includes performance appraisal, developing new skills, disbursement of wages, incentives,
allowances, traveling policies and procedures and other related courses of actions.
 HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and
amenities at workplace. This includes a wide array of responsibilities and services such as safety
services, health services, welfare funds, social security and medical services. It also covers
appointment of safety officers, making the environment worth working, eliminating workplace
hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper
ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits,
personal injury benefits, maternity benefits, unemployment benefits and family benefits.
It also relates to supervision, employee counseling, establishing harmonious relationships with

employees, education and training. Employee welfare is about determining employees’ real needs
and fulfilling them with active participation of both management and employees. In addition to
this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation facilities, etc.
 HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions

with labor or employee unions, addressing their grievances and settling the disputes effectively in
order to maintain peace and harmony in the organization. It is the art and science of
understanding the employment (union-management) relations, joint consultation, disciplinary
procedures, solving problems with mutual efforts, understanding human behavior and
maintaining work relations, collective bargaining and settlement of disputes.
The main aim is to safeguarding the interest of employees by securing the highest level of
understanding to the extent that does not leave a negative impact on organization. It is about

establishing, growing and promoting industrial democracy to safeguard the interests of both
employees and management.
OJECTIVES OF HRM
1. To create and utilize an able and motivated workforce, to accomplish the basic organizational
goals.
2. To establish and maintain sound organizational structure and desirable working relationships
among all the members of the organization.
3. To secure the integration of individual or groups within the organization by co-ordination of

the individual and group goals with those of the organization.
4. To create facilities and opportunities for individual or group development so as to match it with
the growth of the organization.
5. To attain an effective utilization of human resources in the achievement of organizational

goals.
6. To identify and satisfy individual and group needs by providing adequate and equitable wages,
incentives, employee benefits and social security and measures for challenging work, prestige,
recognition, security, status.
7. To maintain high employees morale and sound human relations by sustaining and improving
the various conditions and facilities.
8. To strengthen and appreciate the human assets continuously by providing training and
development programs.

9. To consider and contribute to the minimization of socio-economic evils such as

unemployment, under-employment, inequalities in the distribution of income and wealth and to
improve the welfare of the society by providing employment opportunities to women and
disadvantaged sections of the society.
10. To provide an opportunity for expression and voice management.
11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation of favorable atmosphere for
maintaining stability of employment.
NATURE OF HRM
Human ResourceManagement is a process of bringing people and organizations together so that the goals
of each are met. The various features of HRM include:
 It is pervasive in nature as it is present in all enterprises.
 Its focus is on results rather than on rules.
 It tries to help employees develop their potential fully.

 It encourages employees to give their best to the organization.
 It is all about people at work, both as individuals and groups.
 It tries to put people on assigned jobs in order to produce good results.
 It helps an organization meet its goals in the future by providing for competent and well-
motivated employees.
 It tries to build and maintain cordial relations between people working at various levels in the
organization.
 It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology,

economics, etc.
PROCESS OF HRM
Each organization works towards the realization of one vision. The same is achieved by formulation
of certain strategies and execution of the same, which is done by the HR department. At the base of
this strategy formulation lie various processes and the effectiveness of the former lies in the
meticulous design of these processes. But what exactly are and entails these processes? Let’s read
further and explore.
The following are the various HR processes:
1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,

Evaluation, Promotion and Layoff).
2. Employee remuneration and Benefits Administration
3. Performance Management.
4. Employee Relations.
The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You start
from Human resource Planning and there is a continual value addition at each step. To exemplify,
the PMS (performance Management System) of an organization like Infosys would different from an
organization like Walmart. Lets study each process separately.

Human Resource Planning: Generally, we consider Human Resource Planning as the process of

people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion
and Layoff.
 Recruitment: It aims at attracting applicants that match a certain Job criteria.

 Selection: The next level of filtration. Aims at short listing candidates who are the nearest
match in terms qualifications, expertise and potential for a certain job.
 Hiring: Deciding upon the final candidate who gets the job.
 Training and Development: Those processes that work on an employee onboard for his
skills and abilities upgradation.
Employee Remuneration and Benefits Administration: The process involves deciding upon

salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in
any job and therefore the importance of this process. Performing employees seek raises, better
salaries and bonuses.
Performance Management: It is meant to help the organization train, motivate and reward workers.
It is also meant to ensure that the organizational goals are met with efficiency. The process not only
includes the employees but can also be for a department, product, service or customer process; all
towards enhancing or adding value to them.
Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them
accordingly on their training and development needs.
Employee Relations: Employee retention is a nuisance with organizations especially in industries

that are hugely competitive in nature. Though there are myriad factors that motivate an individual to
stick to or leave an organization, but certainly few are under our control.
Employee relations include Labor Law and Relations, Working Environment, Employee heath and
safety, Employee- Employee conflict management, Employee- Employee Conflict Management,
Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs,
Counseling for occupational stress. All these are critical to employee retention apart from the money
which is only a hygiene factor.

Functions of Human Resource Management
 Planning
 Organizing
 Directing
 Controlling
Planning
A manager must plan ahead in order to get things done by his subordinates. It is also important to plan in
order to give the organization its goals.
Also, planning helps establish the best procedures to reach the goals. Further, some effective managers
devote a substantial part of their time to planning.
With respect to the human resource department, planning involves determining the personnel programs that
can contribute to achieving the organization’s goals.

These programs include anticipating the hiring needs of the organization, planning job requirements,
descriptions, and determining the sources of recruitment.
Organizing
After the human resource manager establishes the objectives and develops plans and programs to achieve
them, he needs to design and develop the organization’s structure to carry out the different operations.
Developing the organization’s structure includes:
 Grouping of personnel activity into functions or positions
 Assigning different groups of activities to different individuals
 Delegating authority according to the tasks assigned and responsibilities involved
 Coordinating activities of different employees
Directing
The HR Manager can create plans, but implementing the plans smoothly depends on how motivated the
people are. The directing functions of HRM involve encouraging people to work willingly and efficiently to
achieve the goals of the organization. In simpler words, the directing functions of HRM entail guiding and
motivating people to accomplish the personnel programs.
The HRM can motivate the employees through career planning and salary administration by boosting the
employee’s morale, developing relationships, providing safety requirements, and looking after the welfare of
employees.
In order to do this effectively, the HRM must identify the needs of the employees and the means and methods
to satisfy them. Motivation is a continuous process as employees have new needs and expectations when the
old ones are satisfied.
Browse more Topics Under Human Resource Management
 Features of HRM

 Importance and Limitations of HRM
 Role of Personnel Manager
 Qualities of the HR Manager
 Managerial Functions of HR Manager
 Operative Functions of HR Manager
 Recruitment Process
 Selection Procedure
 Training and Development
 Methods of Training
 Performance Appraisal
 Traditional Methods of Appraisal
 Modern Methods of Appraisal
 HR Forecasting
Controlling
Controlling is all about regulating activities in accordance with the plans formulated based on the objectives
of the organization. This is the fourth function of the HRM and completes the cycle. In this, the manager
observes and subsequently compares the results with the set standards.
Further, he corrects any deviations that might occur. Controlling is one of the important functions of HRM as
it helps him evaluate and control the performance of the department with respect to different operative
functions. It also involves appraisals, audit, statistics, etc

FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT.
i. Increase Focus on Manpower Management:

There has been a significant increase in focus on manpower management. Practicing good manpower
management or Human Resource Management (HRM) enables managers of an enterprise to express their
goals with specificity, increasing worker comprehension of goals, and provide the necessary resources to
promote successfully accomplishment of said goals.
ii. Innovative Flexibility in Work Environment:
Flexibility in work environment brings a culture of creativity and innovation in the work culture. In
today’s competitive environment, innovation plays a major role in bringing a core competency for the
company in market.
iii. Increased Focus on Learning Culture:
There has been an increased focus on employees. Due to this reason organisations are focusing on
development of skills. Training and development is now an integral part of HR department
iv. Increased Focus on Strategic Recruitment:
There has been a clear focus on recruitment strategy to be in line with business strategy. The hiring
process should focus on our core competency and should strengthen it.
v. Change Management:

Today organisations take any change very seriously. With the growth in education among employees and
workers, any change cannot be neglected as it plays a significant role in organisation’s working.
vi. Managing Budgets Efficiently & Meeting Biz Expectations:
There should be a proper budget allocation for Human Resources. Human resources should be given a
particular importance in the budget allocation. The approach considering human resources as a cost centre
is now shifting and the perception has been changing significantly.
vii. Growth & Expansion:
There has been an expansion in every businesses and industry. Global trade and functions seek proper
attention on HR. The policies should be in line with such growth.
viii. Expectation Management:
There should be proper management of employee expectation because employees are premium assets of
the business.
ORGANIZATIONAL CULTURE
INTRODUCTION:
Organizational culture encompasses values and behaviors that contribute to unique social and
psychological environment of a business. The organizational culture influences the way people interact,
the context within which knowledge is created.
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the

values that guide member behavior, and is expressed in member self-image, inner workings, interactions
with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid.

Basically, organizational culture is the personality of the organization. Culture is comprised of the
assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors.
Members of an organization soon come to sense the particular culture of an organization. Culture is one
of those terms that's difficult to express distinctly, but everyone knows it when they sense it. For example,
the culture of a large, for-profit corporation is quite different than that of a hospital which is quite
different than that of a university. You can tell the culture of an organization by looking at the
arrangement of furniture, what they brag about, what members wear, etc. -- similar to what you can use to
get a feeling about someone's personality.
Corporate culture can be looked at as a system. Inputs include feedback from, e.g., society, professions,
laws, stories, heroes, values on competition or service, etc. The process is based on our assumptions,
values and norms, e.g., our values on money, time, facilities, space and people. Outputs or effects of our
culture are, e.g., organizational behaviors, technologies, strategies, image, products, services, appearance,
etc.
The concept of culture is particularly important when attempting to manage organization-wide change.
Practitioners are coming to realize that, despite the best-laid plans, organizational change must include
not only changing structures and processes, but also changing the corporate culture as well.
There's been a great deal of literature generated over the past decade about the concept of organizational
culture -- particularly in regard to learning how to change organizational culture. Organizational change
efforts are rumored to fail the vast majority of the time. Usually, this failure is credited to lack of
understanding about the strong role of culture and the role it plays in organizations. That's one of the
reasons that many strategic planners now place as much emphasis on identifying strategic values as they
do mission and vision.

Some Types of Organizational Culture
There are different types of culture just like there are different types of personality .
 Academy Culture
Employees are highly skilled and tend to stay in the organization, while working their way up the ranks.
The organization provides a stable environment in which employees can develop and exercise their skills.
Examples are universities, hospitals, large corporations, etc.
 Baseball Team Culture
Employees are "free agents" who have highly prized skills. They are in high demand and can rather easily
get jobs elsewhere. This type of culture exists in fast-paced, high-risk organizations, such as investment
banking, advertising, etc.
 Club Culture
The most important requirement for employees in this culture is to fit into the group. Usually employees
start at the bottom and stay with the organization. The organization promotes from within and highly
values seniority. Examples are the military, some law firms, etc.
 Fortress Culture
Employees don't know if they'll be laid off or not. These organizations often undergo massive
reorganization. There are many opportunities for those with timely, specialized skills. Examples are
savings and loans, large car companies, etc .
Each company consists of many different people and every single person contributes to that company in
different ways.
All the habits, thoughts, beliefs, practically any and every aspect of one’s life reflect on the way he/she
acts at work.
Here we shall discuss 8 different types of company culture and explain why are they important.
It’s an inevitable and inseparable part of every company.

Somehow it comes naturally, people don’t even think about it, but it plays a very significant role.
WHY ORGANIZATIONAL CULTURE?

Every company has their own unique culture. Organizational culture is a set of norms, beliefs, values
and vision that define how employees and managers interact within an organization. Whether you have a
preset list of company values or not your company will naturally develop its own culture. However,
companies have not been paying as much attention to organizational culture until now. A 2015 study by
Deloitte University Press found that 87% of the organizations surveyed now cite culture and employee
engagement as their top challenges. Here are several studies that show why organizational culture
matters:
1. Motivation
After conducting a number of surveys, studies and experiments, authors Lindsay McGregor and Neel
concluded that: why we work determines how well we work. When employees enjoy their work (play),
identify with the values and goals of the job (purpose), or when it contributes to their own professional
goals (potential), performance levels skyrocket. These three elements can only be achieved when a
company has a strong culture and set of values in place. By combining these elements they came up with
the TOMO (total motivation) formula to measure the worth of culture :
Companies that maximize the first three elements - play, purpose, potential - are proven to have highly
productive workforces.
2. Customer Satisfaction
Your employees are your company’s representatives. If they’re engaged at work and believe in your
brand this will come across to the customer. Through their studies in the airline and grocery industries,
McGregor and Neel identified a distinct link between customer satisfaction and company culture. This
correlation was so strong that the difference in revenue between salespeople in strong and weak company
cultures was 30%. However, a GALUP POLL showed that only 41% of employees actually know what
their company stands for and how their brand differs from competitors.
3. Growth
Having a strong culture in place allows you to give more autonomy to your employees, allowing you to
scale, while still holding on to what’s most important for your business. This was a chief concern of
Zappos’ CEO Tony Hsieh. As the company began to grow he wanted a way to maintain its commitment

to customer service and its motto of ‘keeping things weird’. To do this he institutionalized a set of
company values that all employees live by and centered recruitment around culture fit, rather than simply
skill set.
Deloitte found that employees who work for companies with a strong sense of purpose ingrained into
their culture are more confident in their company’s ability to deliver top quality products and service
(65%), focus on long-term sustainable growth (55%), and have a clear understanding of the company’s
purpose and commitment to core values (48%). A further 83% of respondents working for companies
with a strong sense of purpose believe their company is prepared to meet industry disruptions, compared
to 42% in weak culture environments.
4. Attracting Top Talent

It also helps you to attract the best hires. Today potential hires are looking for more than just a good
salary. Generating profit is not enough. Millennials in particular are motivated by working environments
that have a strong sense of purpose and values. They're looking for employers who are concerned about
the impact they have on customers, society and the environment. When Deloitte asked respondents what
the most important aspects of their company culture were most responded: providing business services
and products that have a meaningful impact on customers (89%) and on society (84%). For this reason
more and more companies are offering their employees paid leave to work for the charity of their choice.
5. Employee Retention
Employees today are not just looking for a job, they’re looking for a community in which collaboration
and knowledge-sharing are fostered. A Google survey found that 88% of respondents who strongly
agreed that their company’s culture fostered collaboration and knowledge-sharing also agreed that
employee morale and job satisfaction were high in their company. Columbia University found companies
with rich cultures only have 13.9% probability of turnover, compared to 48.4% in those with a weak
culture. According to a survey by Office vibe , 58% of men and 74% of women would refuse a job with
higher pay if it meant not getting along with their colleagues.
6. Company Image
The information age has brought about increased transparency and scrutiny. Glass door, linkdin Indeed
and Fortune’s ‘100 best Companies to Work For’ all base their rankings on employee critiques of
company culture. A recent combined study by Bersin by Deloitte and Glassdoor sought to identify the

factors that drive current employees to recommend their employer to others. They found that an
employee's rating of culture and values is 4.9 times more predictive of a positive recommendation than
salary or benefits.
Employees and potential hires are not the only ones impacted by a company’s culture, customers and
stakeholders also base their decisions on this information. In a survey, Deloitte found that 81% of
respondents working for companies with a strong sense of purpose also said stakeholders trusted their
leadership team. Seventy-four percent said investors were confident in their growth prospects over the
next year. In fact, the companies included in Fortune’s ‘100 Best Companies to Work For’ list (based on
employee reviews of company culture) experience a 14% average rise in stock prices per year, compared
to 6% in the overall market.
Finally, a combined Columbia and Duke University study of over 1400 CEOs and CFOs found:
More than 90% said that culture was important at their firms.
 92% said they believed improving their firm’s corporate culture would improve the value of the
company.
 78% said culture was one of the top five things that make their company valuable
 More than 50% said corporate culture influences productivity, creativity, profitability, firm value
and growth rates.
 Yet, only 15% said their firm’s corporate culture was where it needed to be.
 When considering acquiring a new company, 46% would not make an offer to a company that did
not align with their own company’s culture.
Influencing the Culture of Your Organization
There are four primary ways to influence the culture of an organization.
1. Emphasize what’s important. This includes widely communicating goals of the organization,
posting the mission statement on the wall, talking about accomplishments and repeating what you
want to see in the workplace.

2. Reward employees whose behaviors reflect what’s important.

3. Discourage behaviors that don’t reflect what’s important. There is no need to punish or cause
prolonged discomfort. Rather, you want to dissuade the employee from continuing unwanted
behaviors by giving them constructive feedback, verbal warnings, written warnings, or firing
them.
4. Model the behaviors that you want to see in the workplace. This is perhaps the most powerful
way to influence behaviors in the workplace. For example, if you want to see more teamwork
among your employees, then involve yourself in teams more often.
Importance of Organization Culture
A common platform where individuals work in unison to earn profits as well as a livelihood for
themselves is called an organization. A place where individuals realize the dream of making it big is
called an organization. Every organization has its unique style of working which often contributes to its
culture. The beliefs, ideologies, principles and values of an organization form its culture. The culture of
the workplace controls the way employees behave amongst themselves as well as with people outside the
organization.

 The culture decides the way employees interact at their workplace. A healthy culture
encourages the employees to stay motivated and loyal towards the management.
 The culture of the workplace also goes a long way in promoting healthy competition at the
workplace. Employees try their level best to perform better than their fellow workers and earn
recognition and appreciation of the superiors. It is the culture of the workplace which actually
motivates the employees to perform
 No two organizations can have the same work culture. It is the culture of an organization which
makes it distinct from others. The work culture goes a long way in creating the brand image
of the organization. The work culture gives an identity to the organization. In other words, an
organization is known by its culture.
 The organization culture brings all the employees on a common platform. The employees
must be treated equally and no one should feel neglected or left out at the workplace. It is
essential for the employees to adjust well in the organization culture for them to deliver their
level best.
 The work culture unites the employees who are otherwise from different back grounds,
families and have varied attitudes and mentalities. The culture gives the employees a sense of
unity at the workplace.
Certain organizations follow a culture where all the employees irrespective of their designations
have to step into the office on time. Such a culture encourages the employees to be punctual
which eventually benefits them in the long run. It is the culture of the organization which makes
the individuals a successful professional.
 Every employee is clear with his roles and responsibilities and strives hard to accomplish the
tasks within the desired time frame as per the set guidelines. Implementation of policies is never a
problem in organizations where people follow a set culture. The new employees also try their
level best to understand the work culture and make the organization a better place to work.
 The work culture promotes healthy relationship amongst the employees. No one treats work
as a burden and moulds himself according to the culture.
 It is the culture of the organization which extracts the best out of each team member. In a
culture where management is very particular about the reporting system, the employees however
busy they are would send their reports by end of the day. No one has to force anyone to work.
The culture develops a habit in the individuals which makes them successful at the workplac e

7 Reasons why organizational culture is important
1. It defines your company’s internal and external identity
Here’s a thought exercise: write down on a piece of paper five attributes that best describe your
organization’s culture. You might write something like “good work-life balance” or “lots of meetings” or
maybe “team-oriented.”
Now, spend a few minutes thinking about why each of those attributes is important to your organization
in particular. Why is it significant that your company has a good work-life balance? What makes these
culture attributes valuable to your people and customers?
Peter Ashworth explains that your organizational culture “defines for you and for all others, how your
organization does business, how your organization interacts with one another and how the team interacts
with the outside world, specifically your customers, employees, partners, suppliers, media and all other
stakeholders.”
In other words, your organizational culture will reverberate across all aspects of your business because it
represents the way you do business. It’s simultaneously your identity and your image, which means it
determines how your people and customers perceive you
2. Organizational culture is about living your company’s core values
Your culture can be a reflection (or a betrayal) of your company’s core values. The ways in which you
conduct business, manage workflow, interact as a team, and treat your customers all add up to an
experience that should represent who you are as an organization and how you believe a company should
be run. In short, your culture is the sum of your company’s beliefs in action.
But if your espoused values don’t match your culture, that’s a problem. It could mean that your “core
values” are a list of meaningless buzzwords, and your people know it.
A strong organizational culture keeps your company’s core values front and center in all aspects of its
day-to-day operations and organizational structure. The value of doing so is incalculable.

3. Your culture can transform employees into advocates (or critics)
One of the greatest advantages of a strong organizational culture is that it has the power to turn employees
into advocates.
Your people want more than a steady paycheck and good benefits; they want to feel like what they do
matters. And when your people feel like they matter, they’re more likely to become culture advocates—
that is, people who not only contribute to your organization’s culture, but also promote it and live it
internally and externally.
How do you achieve this? One way is to recognize good work. A culture that celebrates individual and
team successes, that gives credit when credit is due, is a culture that offers a sense of accomplishment.
And that’s one way to turn employees into advocates.
Then again, if your company culture doesn’t do this, you may be inviting criticism.
4. A strong organizational culture helps you keep your best people
It should come as no surprise that employees who feel like they’re part of a community, rather than a cog
in a wheel, are more likely to stay at your company. In fact, that’s what most job applicants are looking
for in a company.
Ask any top performer what keeps them at their company and you’re bound to hear this answer: the
people. It’s because a workplace culture focused on people has profound appeal. It helps
improve engagement, deliver a unique employee experience, and makes your people feel more connected.
One way to attract top performers that are natural culture champions is to hire for cultural fit.
5. A well-functioning culture assists with on boarding
Organizational culture also has the potential to act as an aligning force at your company. This is
particularly the case with new hires who, more often than not, have put some considerable thought into
the type of culture they’re entering into.

The culture at your organization is essentially a guiding force for them, so it’s important that it starts with
on boarding.
Writing in Forbes, George Brandt explains further: “People fail in new jobs because of poor fit, poor
delivery or poor adjustment to changes down the road. Assuming you’ve aligned the organization around
the need for your new employees and acquired them in the right way, your on boarding program should
accommodate their needs (so they can do real work), assimilate them into the organization (so they fit
culturally) and accelerate their progress (so they can deliver and adjust).”
6. Your culture transforms your company into a team
A successful organizational culture brings together the people at your company and keeps them aligned.
When your culture is clear, different perspectives can gather behind it with common purpose. The culture
at your organization sets expectations for how people behave and work together, and how well they
function as a team.
In this way, culture can break down the boundaries between siloed teams, guide decision-making, and
improve workflow overall. On the flip side, a toxic organizational culture has the capacity to do just the
opposite.
7. Culture impacts performance and employee wellbeing
Reports show that organizational culture has a direct impact on performance and, more
importantly, your employees’ wellbeing. A healthy culture addresses both of these areas by
finding an appropriate balance based on company values.
Does your company stress performance to such a degree that you feel like your physical and mental
health are being overlooked? There might be instances when that may not be a problem, but for the vast
majority of cases, it’ll have a negative effect on your company.
Paul Barrett sums it up nicely, writing that “Employee wellbeing strategies have the potential to bring
huge benefits to employees and employers alike but they need to be introduced in the right way for the
right reasons, and at the right time. To be properly effective they need to be developed in a holistic way,
consistent with a business culture that is conducive to their success. That means supportive management
behaviors, flexible working options and an open culture that allows employees a voice and some say in
shaping the working environment.

These are just a smattering of reasons why organizational culture is important, but they’re a good starting
point to get you thinking about what your own organization brings to the table. What’s important at your
company might be totally different depending on the situation.
So what are your next steps? Find out what aspects of your organizational culture are most important to
your people, and think about performing a culture audit. Your goal is to discover what your people value
most and support that. Congratulations, you’re one step closer to creating an extraordinary workplace.
After learning about the important roles that culture plays in an organization, you'll take a decidedly
proactive stance – because you know culture is vital to the success of your small business. Consider how
a positive culture can:
 Influence the way your employees interact among themselves as well as with people outside of
your small business. In this way, culture sets the tone of your small business – and feels like it
too.* Serve as a compass for how employees should carry out their duties and responsibilities, even
if directives and procedures are not explicit. Employees understand, at a gut level, what is expected
of them – and they deliver.
 Bring employees together to focus on common goals and objectives – meaning your goals and
objectives.
 Foster cohesiveness among employees who may be from different backgrounds. When

employees embrace a culture, they elevate and focus on it, not on their demographic differences.
 Promote company pride, which can spawn a number of benefits, including higher employee
morale, engagement, productivity and loyalty. A positive culture can act like fuel to employees,
propelling them to outwit and outmaneuver the competition because they are convinced you offer the
superior product or service.* Contribute to your brand identity and image – among your customers,
competitors, future employees and every other stakeholder who is important to you. Business owners
who are known to struggle with so-called “internal PR problems” usually mean that they're
struggling with a negative organizational culture that has finally caught up with them. By the time
the issue has landed on their radar, the problem has usually reached epic proportions.
 Transform those stakeholders, and especially employees, into advocates. This is the brass ring of
every small-business owner –
To sit back and watch and listen as those who are so impressed with the positive experience they had
with the company spread the word to others. * Attract the very best job candidates to your door.

Most people want to work in a positive environment in which they feel valued – and they usually
stick around longer too.
The functions of organizational culture
 The guiding function.
Organizational culture can play a guiding role of value orientation and behavior orientation in enterprises
and each member of them. This orientation is different from a traditional management which simply
focus on the rigid discipline or system, it emphasizes to guide the behavior of members of the enterprise
from the shaping organizational culture, to make people accept the common values in a cultural
imperceptibly.(Barney, 1986)
 The incentive function.
Positive ideas and code of conduct can form a strong sense of mission and a sustained driving force.
Positive organizational culture is a ruler of self-motivation to the employees, the ruler that they can
contrast their own behavior, identify gaps, can generate the driving force for improving. In the same time,
enterprises with shared values, beliefs and codes of conduct which can be a powerful spiritual pillar, can
make a person generate a sense of identity, a sense of belonging and a sense of security, until play the role
of mutual encouragement.(Deal and Kennedy, 1982)

 The cohesion function
The collective strength depends on the cohesion of the organization, the coordination of the
organization’s internal condition and ability to control. The cohesion of the organization, coordination
and control can be generated by “rigid connections” like the system of discipline, but not as good as more
effective by “internal binder” like shared values, beliefs, and codes of conduct, (Schwartz, and Davis,
1981)
 The constraint function
Excellent organizational cultures have the binding effect on the thinking and behavior of each employee.
After a long period of construction of organizational culture, formed written or convention rules and
regulations, ethics and codes of conduct to regulate the behavior of employees, by this measure, it achieve
the controlling of thinking and behave of workers.(Cooke, 1987)
Take the McDonald for example, McDonald’s Quality, Service, Cleanliness, Value, it formed from the
top to bottom of a company-wide to a high-spirited, energetic and promising enterprises mental outlook,
the concept of health inspire and guide workers keep making progress. McDonald focus on meticulous
management, cultivate awareness of staff to establish “the details determine success or failure “, to
improve management efficiency through good detail, to build a strong team through good detail, use good
details to regulate employee behavior, good restraints of organizational culture in the system can be fully
demonstrated. McDonald also enhance their employees sense of belonging through methods such as
uniform dress; strengthen employees collaborate awareness; care for each other, help each other; actively
promote flexible management to encourages employees to breakthrough program of the work to form a
flexible internal strengthen collaboration between employees. scientific management being taken to
improve the sense of community of employees.
The functions of organizational culture impact on management

 The organizational culture is the basis of the Strategic Management, Strategic management is to
determine its mission, according to the external environment and internal conditions to set the
strategic objectives of the enterprise, in order to ensure the correct implementation of the goals and
progress plan, and rely on internal capabilities implemented this kind of planning and decision-

making, constraints in the implementation process of a dynamic management process. The

organizational culture is the value orientation of the enterprise for a variety of internal and external
affairs and resources, enterprises in the long-term organizational values, under the guidance of shared
values, guiding principles and select corporate behavior. Excellent organizational culture is an
important condition for business strategy development and success. It can highlight the characteristics
of enterprises, the formation of the common values of the members of the enterprise, also because of
its distinctive personality, more conducive to enterprise to develop a distinctive strategy of defeating
the enemy. Strategy formulation process of collective behavior, establish above the values and beliefs
of the organization members.(Hampden-Turner, 1990) Based on the wishes of the members of
organization, the guidance from particular culture, to develop corporate strategy around the
organizational culture. Therefore, the organizational culture is the basis of corporate strategic
planning, development and implementation.

The positive role of the organizational culture

1. Corporate mission and values are important factors for an enterprise culture, so that
employees can identify with the organization’s business philosophy and creed.
The formulation of corporate strategy is bound to affected by a mission. The corporate mission defines
the scope and level of the enterprises operating in the field of socio-economic activities, represents the
corporate identity and role in the socio-economic activities.
The core corporate values of the organizational culture guide the enterprises own strategy development to
built on the basis of the values required of following the market and the enterprise’s own progress. When
employees were able to agree with the company’s values, you would think that the efforts they made for
the enterprise role, valuable sense of collective identity value will give employees greater satisfaction,
and this sense of satisfaction in turn will more promote the dedication of the staff of the enterprise.
2. Culture played a stable role of organization in corporate strategy design, implementation. It

guides and shapes the attitude and behavior of employees; make the employees to accept
corporate norms and canonical role of restraint mechanisms, and the guidance play the role of
restraint mechanisms to encourage their employees to achieve the behavior that enterprises
expect. In the perspective of time corporate strategic constraints can be divided into prior
constraints, afterwards constraints and any time constraints. Prior constraints requires to design a
good valid strategic plan before the implementation of the it, however, it must be designed
harmony with the organizational culture, if there is the deviation between the two, the
organizational culture will play its regulatory role for the prior constraints goes smoothly.
Organizational culture play its strategic constraints is more significantly embodied in the
adjustment of afterwards constraints. It is based on the spirit of enterprise, to fully exploit the
employees of self-restraint and self-regulation, use of a humane way to adjust, thus it can greatly
reducing friction and communication costs of personnel in the process of implementation of the
strategy, in order to promote the implementation of the strategy within the enterprise.
3. Organizational culture as a driving force of the strategy and continuously improve business
performance, profitability and productivity, it become a powerful internal driving force. Culture
enables members to understand the historical tradition and the present approach to business,
provided to the staff a reasonable explanation for the events of the past of the enterprise, thus to
facilitate the employees to understand their proper representation in the future in the similar
incidents. This kind of non-institutional factors will enable more humane management to

constrain the opportunistic behavior of managers and employees, thus promoting the effective
implementation of the corporate strategy.
4. The negative role of the organizational culture on strategic management

5. Due to cultural difference between the various levels of the organization, when the overall
strategy reached out the various departments, they have varying degrees of conflict and
contradiction, the contradiction of this conflict will reduce the degree of integration of the entire
department and hinder the corporate strategy implementation. However, due to the enterprise
implement this kind of division of work, it will lead to a split and the formation of the sub-culture
of organizational culture. Strategic management of the enterprise is to unify to form a unified
concept of progress of the internal culture, it needs to coordinate the various departments grading,
but this requires enterprises to pay the considerable cost, but also need to do ideological
adjustment for the department have a propensity of conflict.
6. The existing organizational culture has been difficult to adapt to the progress of modern society
and the enterprise. In order to adapt better to the external environment, to implement the new
strategy, many enterprises began to change the organizational culture that are existing. The
original culture has been deeply rooted within the enterprise, with the sudden shift, there will be
great progress resistance.
7. People employed in the enterprise have the different cultural background, there is a significant
difference between them. The companies believe that this can boost the organization to achieve
enterprise multifaceted progress. Employees bear a strong organizational culture will naturally
accept this culture, behavior consistent with its own characteristics will not be reflected in order
to lead to the formation of a single environmental systems, lack of constructive sounds and
opinion, the employees will not spend more time to update and improve the internal management
of the enterprise, no innovative force at all.(RSA 1995)
Take Apple Inc. as the example, first, the business guiding ideology inadaptability lead to strategic
mistakes. Apple does not like to hear someone accusations that he is wrong, and hope that regardless of
their own employees, or the hot suitors of the outside world can stand together with his firmly. With the
culture of “to go it alone” will inevitably lead to the company’s operating guiding ideology to a product-
oriented, which leads the direction of the company and the market demand is difficult to coordinate.
Secondly, Lack of coordination within the organization, and inconsistent. Leadership is one thing to
develop workflow and truthfully feedback process of the team is another matter entirely. Former Apple

designer Andrew Poirot Minkowski, (Andrew Borovsky) said: “from the design, each of the underlying
designers is extremely difficult to get direct feedback from the executives. Typically, if you are not
receiving a positive reply, then it is told you to stop doing stupid things. ” Third, over-reliance on
individual heroes, serious personality cult. Apple has a unique program, that is to cultivate a person –
whether he is competent, supervisor, or a common staff – on behalf of Steve Jobs eligibility. Steve Jobs is
a dictator of the company, all of the key decision-making – as well as a lot of seemingly inconsequential
decisions – are made by him. These decisions include how to design the route of shuttle for employees in
San Francisco city, what kind of food served in cafeteria. However, as Jobs can insight into the
company’s all move, he has not see if he is not sitting in the CEO ’chair, the situation will be very
different
The role of the organizational culture in the corporate management is to manage strictly, focusing on the
incentive to cultivate employees’ sense of responsibility and solidarity, like the physical form of the
product, as it is perceivable, organizational culture cohesive people internally, improve operations
externally, also strengthen the management, make the vitality of enterprises to develop and create a strong
competitive. Ancient and modern history shows that the closed culture inevitably lead to stagnation and
degradation of the society, open culture will inevitably lead to the prosperity of society and evolution, it is
the same for companies, so to strengthen the integration of the organizational culture is the right choice
for corporate survival and sustainable development. In the management applications of the organizational
culture, “people-oriented” is most able to attract talent, now, many businesses and entrepreneurs
advertised himself as a “people-oriented”. However, in the enterprise management system, the leadership
style of the business owners in the allocation of the enterprise, the basic living and working conditions of
the workers, and so on are not the slightest reflects of the attitude of true respect to talents, to employees,
then “people-oriented” is illusory. In the market economy, if the businesses want to be invincible,
business leaders must fully understand and know the advantages and shortcomings of the enterprise. To
prevent and overcome their own shortcomings in order to cope in a market economy. Operations are art,
management are science, and the system is the guarantee, talent is fundamental. Grasp a good business
operation, management, system, talent, then the company could hopely have a healthy development, also
could truly establish their own organizational culture. Organizational culture is increasingly
understood as a critical element in the creation of high performance workspaces. A

company’s prevailing values, attitudes, beliefs, artifacts, and b e h a v i o r s a l l c o m p r i s e

i t s c u l t u r e a n d h e l p t o c r e a t e a s e n s e o f o r d e r , c o n t i n u i t y , a n d commitment. Not only

does the corporation as a whole have a culture, but it commonly contains numerous subcultures.
Understanding culture at both levels is important because one workspace design will not necessarily
best support differing work cultures.
PART B
BANK
INTRODUCTION
A bank is a financial institution that accepts deposits from the public and creates credit.[1] Lending

activities can be performed either directly or indirectly through capital markets. Due to their importance
in the financial stability of a country, banks are highly regulated in most countries. Most nations have
institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal
to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity,
banks are generally subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.
Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance
Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots
in the ancient world. In the history of banking, a number of banking dynasties – notably, the Medicis,
the Fuggers, the Welsers, the Berenbergs, and the Rothschilds – have played a central role over many
centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest
existing merchant bank is Berenberg Bank.

HISTORY:
Among many other things, the Code of Hammurabi from 1754 BC recorded interest-bearing loans.
The concept of banking may have begun in ancient Babylonia and Old sangvi, with merchants offering
loans of grain as collateral within a barter system. Lenders in ancient Greece and during the Roman
Empire added two important innovations: they accepted deposits and changed money. Archaeology from
this period in ancient China and India also shows evidence of money lending.
More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the
centre and north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. One of
the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 139 The
earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407
at Genoa, Italy.

Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in
the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London, who
possessed private vaults, and charged a fee for that service. In exchange for each deposit of precious
metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee;
these receipts could not be assigned, only the original depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to the
development of modern banking practices; promissory notes (which evolved into banknotes) were issued
for money deposited as a loan to the goldsmith. The goldsmith paid interest on these deposits. Since the
promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were
repayable over a longer time period, this was an early form of fractional reserve banking. The promissory
notes developed into an assignable instrument which could circulate as a safe and convenient form of
money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk
of default. Thus, the goldsmiths of London became the forerunners of banking by creating new money
based on credit.
The Bank of England was the first to begin the permanent issue of banknotes, in 1695. The Royal Bank of
Scotland established the first overdraft facility in 1728. By the beginning of the 19th century a bankers'
clearing house was established in London to allow multiple banks to clear transactions.
The Rothschilds pioneered international finance on a large scale, financing the purchase of the Suez
canal for the British government.

Definition
The definition of a bank varies from country to country. See the relevant country pages for more
information.
Under English common law, a banker is defined as a person who carries on the business of banking by
conducting current accounts for his customers, paying cheques drawn on him/her and also
collecting cheques for his/her customers.
Banco de Venezuela in Coro.
Branch of Nepal Bank in Pokhara, Western Nepal.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation
to negotiable instruments, including cheques, and this Act contains a statutory definition of the
term banker: banker includes a body of persons, whether incorporated or not, who carry on the business
of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional,
because it ensures that the legal basis for bank transactions such as cheques does not depend on how the
bank is structured or regulated.
The business of banking is in many English common law countries not defined by statute but by common
law, the definition above. In other English common law jurisdictions there are statutory definitions of
the business of banking or banking business. When looking at these definitions it is important to keep in
minds that they are defining the business of banking for the purposes of the legislation, and not
necessarily in general. In particular, most of the definitions are from legislation that has the purpose of
regulating and supervising banks rather than regulating the actual business of banking. However, in many
cases the statutory definition closely mirrors the common law one. Examples of statutory definitions:
 "banking business" means the business of receiving money on current or deposit account, paying
and collecting cheques drawn by or paid in by customers, the making of advances to customers, and
includes such other business as the Authority may prescribe for the purposes of this Act; (Banking
Act (Singapore), Section 2, Interpretation).
 "banking business" means the business of either or both of the following:
1. receiving from the general public money on current, deposit, savings or other similar account
repayable on demand or within less than [3 months] ... or with a period of call or notice of less
than that period;
2. Paying or collecting cheques drawn by or paid in by customers.

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct
debit and internet banking, the cheque has lost its primacy in most banking systems as a payment
instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to
include financial institutions that conduct current accounts for customers and enable customers to pay and
be paid by third parties, even if they do not pay and collect cheques.
Standard business
Large door to an old bank vault.
Banks act as payment agents by conducting checking or current accounts for customers,

paying cheques drawn by customers in the bank, and collecting cheques deposited to customers' current
accounts. Banks also enable customer payments via other payment methods such as Automated Clearing
House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machines (ATMs).
Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and
by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to
customers on current accounts, by making installment loans, and by investing in marketable debt
securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered indispensable by most
businesses and individuals. Non-banks that provide payment services such as remittance companies are
normally not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans throughout the banking system generate
new deposits elsewhere in the system. The money supply is usually increased by the act of lending, and
reduced when loans are repaid faster than new ones are generated. In the United Kingdom between 1997
and 2007, there was an increase in the money supply, largely caused by much more bank lending, which
served to push up property prices and increase private debt. The amount of money in the economy as
measured by M4 in the UK went from £750 billion to £1700 billion between 1997 and 2007, much of the
increase caused by bank lending. If all the banks increase their lending together, then they can expect new
deposits to return to them and the amount of money in the economy will increase. Excessive or risky
lending can cause borrowers to default, the banks then become more cautious, so there is less lending and
therefore less money so that the economy can go from boom to bust as happened in the UK and many
other Western economies after 2007.

Range of activities
Activities undertaken by banks include personal banking, corporate banking, investment
banking, private banking, transaction banking, insurance, consumer finance, foreign exchange
trading, commodity trading, trading in equities, futures and options trading and money market
trading.
Channels

An American bank in Maryland.
Banks offer many different channels to access their banking and other services:
 Branch, in-person banking in a retail location

 Automated teller machine banking adjacent to or remote from the bank
 Bank by mail: Most banks accept cheque deposits via mail and use mail to communicate to their
customers
 Online banking over the Internet to perform multiple types of transactions
 Mobile banking is using one's mobile phone to conduct banking transactions
 Telephone banking allows customers to conduct transactions over the telephone with
an automated attendant, or when requested, with a telephone operator
 Video banking performs banking transactions or professional banking consultations via a remote
video and audio connection. Video banking can be performed via purpose built banking transaction
machines (similar to an Automated teller machine) or via a video conference enabled bank branch
clarification
 Relationship manager, mostly for private banking or business banking, who visits customers at
their homes or businesses
 Direct Selling Agent, who works for the bank based on a contract, whose main job is to increase
the customer base for the bank
Business models
A bank can generate revenue in a variety of different ways including interest, transaction fees and
financial advice. Traditionally, the most significant method is via charging interest on the capital it lends
out to customers.[17] The bank profits from the difference between the level of interest it pays for deposits
and other sources of funds, and the level of interest it charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest rate.
Historically, profitability from lending activities has been cyclical and dependent on the needs and
strengths of loan customers and the stage of the economic cycle. Fees and financial advice constitute a
more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to
smooth their financial performance.
In the past 20 years, American banks have taken many measures to ensure that they remain profitable
while responding to increasingly changing market conditions.

 First, this includes the Gramm–Leach–Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance functions allows
traditional banks to respond to increasing consumer demands for "one-stop shopping" by
enabling cross-selling of products (which, the banks hope, will also increase profitability).
 Second, they have expanded the use of risk-based pricing from business lending to consumer
lending, which means charging higher interest rates to those customers that are considered to be a
higher credit risk and thus increased chance of default on loans. This helps to offset the losses from
bad loans, lowers the price of loans to those who have better credit histories, and offers credit
products to high risk customers who would otherwise be denied credit.
 Third, they have sought to increase the methods of payment processing available to the general
public and business clients. These products include debit cards, prepaid cards, smart cards, and credit
cards. They make it easier for consumers to conveniently make transactions and smooth their
consumption over time (in some countries with underdeveloped financial systems, it is still common
to deal strictly in cash, including carrying suitcases filled with cash to purchase a home).
However, with the convenience of easy credit, there is also increased risk that consumers will
mismanage their financial resources and accumulate excessive debt. Banks make money from
card products through interest charges and fees charged to cardholders, and transaction fees to
retailers who accept the bank's credit and/or debit cards for payments.
This helps in making a profit and facilitates economic development as a whole.
Recently, as banks have been faced with pressure from fintechs, new and additional business models
have been suggested such as freemium, monetization of data, white-labeling of banking and payment
applications, or the cross-selling of complementary products.
Products
A former building society, now a modern retail bank in Leeds, West Yorkshire.
An interior of a branch of National Westminster Bank on Castle Street, Liverpool
Retail
 Savings account
 Recurring deposit account

 Fixed deposit account

 Money market account
 Certificate of deposit (CD)
 Individual retirement account (IRA)
 Credit card
 Debit card
 Mortgage
 Mutual fund
 Personal loan
 Time deposits
 ATM card
 Current accounts
 Cheque books
 Automated Teller Machine (ATM)
 National Electronic Fund Transfer (NEFT)
 Real Time Gross Settlement (RTGS)
Business (or commercial/investment) banking
 Business loan
 Capital raising (equity / debt / hybrids)
 Revolving credit
 Risk management (foreign exchange (FX)), interest rates, commodities, derivatives
 Term loan
 Cash management services (lock box, remote deposit capture, merchant processing)
 Credit services
Capital and risk
Banks face a number of risks in order to conduct their business, and how well these risks are
managed and understood is a key driver behind profitability, and how much capital a bank is required
to hold. Bank capital consists principally of equity, retained earnings and subordinated debt.
After the 2007-2009 financial crises, regulators force banks to issue Contingent convertible
bonds (CoCos).These are hybrid capital securities that absorb losses in accordance with their

contractual terms when the capital of the issuing bank falls below a certain level. Then debt is
reduced and bank capitalization gets a boost. Owing to their capacity to absorb losses, CoCos have
the potential to satisfy regulatory capital requirement.
Some of the main risks faced by banks include:
 Credit risk: risk of loss arising from a borrower who does not make payments as promised.
 Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to
prevent a loss (or make the required profit).
 Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio,
will decrease due to the change in value of the market risk factors.
 Operational risk: risk arising from execution of a company's business functions.
 Reputational risk: a type of risk related to the trustworthiness of business.
 Macroeconomic risk: risks related to the aggregate economy the bank is operating in. [23]
The capital requirement is a bank regulation, which sets a framework within which a bank or
depository institution must manage its balance sheet. The categorization of assets and capital is
highly standardized so that it can be risk weighted.
Banks in the economy
SEB main building in Tallinn, Estonia
Economic functions
The economic functions of banks include:
1. Issue of money, in the form of banknotes and current accounts subject to cheque or payment at
the customer's order. These claims on banks can act as money because they are negotiable or
repayable on demand, and hence valued at par. They are effectively transferable by mere
delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash.
2. Netting and settlement of payments – banks act as both collection and paying agents for
customers, participating in interbank clearing and settlement systems to collect, present, be
presented with, and pay payment instruments. This enables banks to economize on reserves held
for settlement of payments, since inward and outward payments offset each other. It also enables

the offsetting of payment flows between geographical areas, reducing the cost of settlement
between them.
3. Credit intermediation – banks borrow and lend back-to-back on their own account as middle men.
4. Credit quality improvement – banks lend money to ordinary commercial and personal borrowers
(ordinary credit quality), but are high quality borrowers. The improvement comes from
diversification of the bank's assets and capital which provides a buffer to absorb losses without
defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the
bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to
operate, this puts the note holders and depositors in an economically subordinated position.
5. Asset liability mismatch/Maturity transformation – banks borrow more on demand debt and short
term debt, but provide more long term loans. In other words, they borrow short and lend long.
With a stronger credit quality than most other borrowers, banks can do this by aggregating issues
(e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and
redemption of banknotes), maintaining reserves of cash, investing in marketable securities that
can be readily converted to cash if needed, and raising replacement funding as needed from
various sources (e.g. wholesale cash markets and securities markets).
6. Money creation/destruction – whenever a bank gives out a loan in a fractional-reserve
banking system, a new sum of money is created and conversely, whenever the principal on that
loan is repaid money is destroyed.
Types of banking
Banks' activities can be divided into:
 retail banking, dealing directly with individuals and small businesses;

 business banking, providing services to mid-market business;
 corporate banking, directed at large business entities;
 private banking, providing wealth management services to high-net-worth individuals and
families;
 investment banking, relating to activities on the financial markets.
Most banks are profit-making, private enterprises. However, some are owned by government, or are non-
profit organizations.

Types of banks
 Commercial banks :
The term used for a normal bank to distinguish it from an investment bank. After the Great
Depression, the U.S. Congress required that banks only engage in banking activities, whereas
investment banks were limited to capital market activities. Since the two no longer have to be under
separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank
that mostly deals with deposits and loans from corporations or large businesses.
 Community banks:
Locally operated financial institutions that empower employees to make local decisions to serve their
customers and the partners.
 Community development banks:
Regulated banks that provide financial services and credit to under-served markets or populations.
 Land development banks:
The special banks providing long-term loans are called land development banks (LDB). The history
of LDB is quite old. The first LDB was started at Jhang in Punjab in 1920. The main objective of the
LDBs are to promote the development of land, agriculture and increase the agricultural production.
The LDBs provide long-term finance to members directly through their branches. [28]
 Credit unions or co-operative banks:
not-for-profit cooperatives owned by the depositors and often offering rates more favourable than
for-profit banks. Typically, membership is restricted to employees of a particular company, residents
of a defined area, members of a certain union or religious organizations, and their immediate
families.
 Postal savings banks:
Savings banks associated with national postal systems.

 Private banks:
Banks that manage the assets of high-net-worth individuals. Historically a minimum of US$1 million
was required to open an account, however, over the last years many private banks have lowered their
entry hurdles to US$350,000 for private investors.[29]
 Offshore banks:
Banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially
private banks.
 Savings bank:
In Europe, savings banks took their roots in the 19th or sometimes even in the 18th century. Their
original objective was to provide easily accessible savings products to all strata of the population. In
some countries, savings banks were created on public initiative; in others, socially committed
individuals created foundations to put in place the necessary infrastructure. Nowadays, European
savings banks have kept their focus on retail banking: payments, savings products, credits and
insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they
also differ from commercial banks by their broadly decentralized distribution network, providing
local and regional outreach – and by their socially responsible approach to business and society.
 Building societies and Landesbanks:
Institutions that conduct retail banking.
 Ethical banks:
Banks that prioritize the transparency of all operations and make only what they consider to be
socially responsible investments.A direct or internet-only bank is a banking operation without any
physical bank branches. Transactions are usually accomplished using ATMs and electronic
transfers and direct deposits through an online interface.
Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their own
accounts, make markets, provide investment management, and advise corporations on capital
market activities such as mergers and acquisitions.
 Merchant banks were traditionally banks which engaged in trade finance. The modern definition,
however, refers to banks which provide capital to firms in the form of shares rather than loans.
Unlike venture caps, they tend not to invest in new companies.
Combination banks
A Banco do Brasil office in São Paulo, Brazil, the bank is the largest financial institution in Brazil
and Latin America.
 Universal banks, more commonly known as financial services companies, engage in several of

these activities. These big banks are very diversified groups that, among other services, also
distribute insurance – hence the term bancassurance, a portmanteau word combining "banque or
bank" and
 Central banks are normally government-owned and charged with quasi-regulatory
responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They
generally provide "assurance", signifying that both banking and insurance are provided by the same
corporate entity.
 Other types of banks liquidity to the banking system and act as the lender of last resort in event of
a crisis.
 Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around
several well-established principles based on Islamic canons. All banking activities must avoid
interest, a concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees on the
financing facilities that it extends to customers.
Types of accounts
Bank Accounts are classified into four different types. They are,
1) Current Account
2) Savings Account

3) Recurring Deposit Account
4) Fixed Deposit Account
1. Current account is mainly for business persons, firms, companies, public enterprises etc and
are never used for the purpose of investment or savings.These deposits are the most liquid deposits
and there are no limits for number of transactions or the amount of transactions in a day. While, there
is no interest paid on amount held in the account, banks charges certain service charges, on such
accounts. The current accounts do not have any fixed maturity as these are on continuous basis
accounts.
2. Savings Account is meant for saving purposes. Any individual either single or jointly can open
a savings account. Most of the salaried persons, pensioners and students use Savings Account. The
advantage of having Savings Account is Banks pay interest for the savings. The saving account
holder is allowed to withdraw money from the account as and when required.The rate of interest
ranges between 4% to 6% per annum in India. There is no restriction on the number and amount of
deposits. But withdrawals are subjected to certain restrictions. Some banks recommend to maintain a
minimum amount to keep it functioning.
3. Recurring deposit account or RD account is opened by those who want to save certain
amount of money regularly for a certain period of time and earn a higher interest rate. In RD account
a fixed amount is deposited every month for a specified period and the total amount is repaid with interest

at the end of the particular fixed period. The period of deposit is minimum six months and maximum ten
years. The interest rates vary for different plans based on the amount one saves and the period of time and
also on banks. No withdrawals are allowed from the RD account. However, the bank may allow to close
the account before the maturity period.These accounts can be opened in single or joint names. Banks are
also providing the Nomination facility to the RD account holders.
4. Fixed Deposit Account (also known as FD Account), a particular sum of money is deposited in
a bank for specific period of time. It’s one time deposit and one time take away (withdraw) account. The
money deposited in this account can not be withdrawn before the expiry of period. However, in case of
need, the depositor can ask for closing the fixed deposit prematurely by paying a penalty. The penalty
amount varies with banks.A high interest rate is paid on fixed deposits. The rate of interest paid for fixed
deposit vary according to amount, period and also from bank to bank.

EMPLOYEE ENGAGEMENT:
Employee engagement is a fundamental concept in the effort to understand and describe, both
qualitatively and quantitatively, the nature of the relationship between an organization and its employees.
An "engaged employee" is defined as one who is fully absorbed by and enthusiastic about their work and
so takes positive action to further the organization's reputation and interests. An engaged employee has a
positive attitude towards the organization and its values. In contrast, a disengaged employee may range
from someone doing the bare minimum at work (aka 'coasting'), up to an employee who is actively
damaging the company's work output and reputation.
An organization with "high" employee engagement might therefore be expected to outperform those with
"low" employee engagement.
Employee engagement first appeared as a concept in management theory in the 1990s, becoming

widespread in management practice in the 2000s, but it remains contested. It stands in an unspecified
relationship to earlier constructs such as morale and job satisfaction. Despite academic critiques,
employee engagement practices are well established in the management of human resources and
of internal communications.
William Kahn provided the first formal definition of personnel engagement as "the harnessing of
organisation members' selves to their work roles; in engagement, people employ and express themselves
physically, cognitively, and emotionally during role performances.
In 1993, Schmidt et al. proposed a bridge between the pre-existing concept of 'job satisfaction' and
employee engagement with the definition: "an employee's involvement with, commitment to, and
satisfaction with work. Employee engagement is a part of employee retention." This definition integrates
the classic constructs of job satisfaction (Smith et al., 1969), and organizational commitment (Meyer &
Allen, 1991).
Defining employee engagement remains problematic. In their review of the literature in 2011, Wollard
and Shuck identify four main sub-concepts within the term:
1. "Needs satisfying" approach, in which engagement is the expression of one's preferred self in task
behaviours.
2. "Burnout antithesis" approach, in which energy, involvement, efficacy are presented as the
opposites of established "burnout" constructs: exhaustion, cynicism and lack of accomplishment.

3. Satisfaction-engagement approach, in which engagement is a more technical version of job

satisfaction, evidenced by The Gallup Company's own Q12 engagement survey which gives an
r=.91 correlation with one (job satisfaction) measure.
4. The multidimensional approach, in which a clear distinction is maintained between job and
organisational engagement, usually with the primary focus on antecedents and consequents to
role performance rather than organisational identification.
Definitions of engagement vary in the weight they give to the individual vs the organisation in creating
engagement. Recent practice has situated the drivers of engagement across this spectrum, from within the
psyche of the individual employee (for example, promising recruitment services that will filter out
'disengaged' job applicants ) to focusing mainly on the actions and investments the organisation makes to
support engagement.
These definitional issues are potentially severe for practitioners. With different (and often proprietary)
definitions of the object being measured, statistics from different sources are not readily comparable.
Engagement work remains open to the challenge that its basic assumptions are, as Tom Keenoy describes
them, 'normative' and 'aspirational', rather than analytic or operational - and so risk being seen by other
organizational participants as "motherhood and apple pie" rhetoric
ORGANISATIONAL EFFECTIVENESS:
Organizational effectiveness is the concept of how effective an organization is in achieving
the outcomes the organization intends to produce. [1] Organizational Effectiveness groups in organizations
directly concern themselves with several key areas. They are talent management, leadership
development, organization design and structure, design of measurements and scorecards, implementation
of change and transformation, deploying smart processes and smart technology to manage the firms'
human capital and the formulation of the broader Human Resources agenda. If an organization has
practices and programs in the areas above, the OE group does many or all of the following roles
 Examines alignment between the areas and improves them

 Improves trade-offs between reliability, speed and quality in the above areas
 Strategizes for higher adoption rates in these areas
 Facilitates/initiates/catalyses capability building : structure, process and people

Rapid advances in social sciences and technology aided by clever experimentation and observation is
bringing several truths to the light of society. There are several disciplines of social sciences that help the
OE Practitioner be successful.
Four of them are outlined below
 Decision Making - Ways in which real people make decisions, enabling them real time to make
good decisions, improving quality of decisions by leveraging adjacent disciplines ( for
example- Behavioral economics) and replicating relevant experiments, creating new ones and
implementing their results to make organizations effective
 Change & Learning – Ways in which real people learn, change, adopt and align, get “affected” by
dynamics in the environment and leveraging this knowledge to create effective organizations that are
pioneers of change and learning
 Group Effectiveness – Ways in which real people work well together, especially in bringing new
ideas and innovation, working of people to people protocols, impact of digitization and virtualization
in organizations on these protocols
 Self-Organizing & Adaptive Systems– Ways in which self-organizing systems and highly
networked systems work, learnings from them and the tangible ways by which they can be put to play
to make organizations more effective
The broader idea of organizational effectiveness is applied for non-profit organizations towards making

funding decisions. Foundations and other sources of grants and other types of funds are interested in
organizational effectiveness of those people who seek funds from the foundations. Foundations always
have more requests for funds or funding proposals and treat funding as an investment using the same care
as a venture capitalist would in picking a company in which to invest.
According to Richard et al. (2009) organizational effectiveness captures organizational performance plus

the myriad internal performance outcomes normally associated with more efficient or effective operations
and other external measures that relate to considerations that are broader than those simply associated
with economic valuation (either by shareholders, managers, or customers), such as corporate social
responsibility.
However, scholars of nonprofit organizational effectiveness acknowledge that the concept has multiple
dimensions and multiple definitions. For example, while most nonprofit leaders define organizational
effectiveness as 'outcome accountability,' or the extent to which an organization achieves specified levels
of progress toward its own goals, a minority of nonprofit leaders define effectiveness as 'overhead

minimization,' or the minimization of fundraising and administrative costs. Hence, Organizational

effectiveness is typically evaluated within nonprofit organizations using logic models. Logic models are a
management tool widely used in the nonprofit sector in program evaluation. Logic models are created for
specific programs to link specific, measurable inputs to specific, measurable impacts. Typically, logic
models specify how program inputs, such as money and staff time, produce activities and outputs, such as
services delivered, which in turn lead to impacts, such as improved beneficiary health.
CONFLICT MANAGEMENT:
Conflict management is the process of limiting the negative aspects of conflict while increasing the
positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes,
including effectiveness or performance in an organizational setting. Properly managed conflict can
improve group outcomes
Dimensions of resolution typically parallel the dimensions of conflict in the way the conflict is
processed. Cognitive resolution is the way disputants understand and view the conflict, with beliefs,
perspectives, understandings and attitudes. Emotional resolution is in the way disputants feel about a
conflict, the emotional energy. Behavioral resolution is reflective of how the disputants act, their
behavior.
Conflict Management Styles

Conflicts happen. How an employee responds and resolves conflict will limit or enable that employee's
success. Here are five conflict styles that a manager will follow according to Kenneth W. Thomas and
Ralph H. Kilmann:
An accommodating manager is one who cooperates to a high degree. This may be at the manager's own
expense and actually work against that manager's own goals, objectives, and desired outcomes. This
approach is effective when the other person is the expert or has a better solution.
Avoiding an issue is one way a manager might attempt to resolve conflict. This type of conflict style does
not help the other staff members reach their goals and does not help the manager who is avoiding the
issue and cannot assertively pursue his or her own goals. However, this works well when the issue is
trivial or when the manager has no chance of winning.
Collaborating managers become partners or pair up with each other to achieve both of their goals in this
style. This is how managers break free of the win-lose paradigm and seek the win-win. This can be
effective for complex scenarios where managers need to find a novel solution.
Competing: This is the win-lose approach. A manager is acting in a very assertive way to achieve his or
her own goals without seeking to cooperate with other employees, and it may be at the expense of those
other employees. This approach may be appropriate for emergencies when time is of the essence.
Compromising: This is the lose-lose scenario where neither person nor manager really achieves what
they want. This requires a moderate level of assertiveness and cooperation. It may be appropriate for
scenarios where you need a temporary solution or where both sides have equally important goals.

CHAPTER NO 02
RESEARCH DESIGN

TITTLE OF THE STUDY:
A STUDY ON
DURATION OF THE PROJECT
RESEARCH OBJECTIVE
 TO ANALYSE THE ORGANISATIONAL CULTURE IN STATE BANK OF INDIA
 TO ANALYSE THE EMPLOYEE ENGAGEMENT IN STATE BANK OF INDIA
 TO ANALYSE THE ORGANISATIONAL EFFECTIVENESS IN STATE BANK OF INDIA.
NEED FOR THE STUDY:

Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypotheses,
and evaluate outcomes. The data collection component of research is common to all fields of study
including physical and social sciences, humanities, business, etc. While methods vary by discipline,
the emphasis on ensuring accurate and honest collection remains the same.

RESEARCH METHODOLOGY
Research methodology is a methodology for collecting all sorts of information

and data pertaining to the subject in question. The objective is to examine all
the issues involved and conduct situational analysis. The methodology
includes the overall research design, sampling procedure and fieldwork done
and finally the analysis procedure. The methodology used in the study
consistent of sample survey using both primary and secondary data. The
primary data has been collected with the help of questionnaire as well as
personal observation book, magazine, journals have been referred for
secondary data. The questionnaire has been drafted and presented by the
researcher himself.
 Sample size:

Sample of 100 people was taken into study, and their data was collected.
 Sampling technique:
To study the project a simple sampling technique is used.
 Data collection:
Collection of data is done by Primary data and through questionnaire ie, primary data was
collected through questionnaire.
 Data analysis:
After data collection I analyzed customer views and ideas related to the overall work
which is offered by the bank to its customers, and also making awareness about the advance form
of banking like mobile banking and net banking etc.
 Data interpretation:
Interpretation of data is done by using statistical tool i.e. bar graphs etc.
LIMITATIONS OF THE STUDY

 HENCE THE STUDY WAS DONE THROUGHT ONLINE METHOD ,IT MAY OR
MAYNOT GIVE US AN ACCURATE INFORMATION.
 THE STUDY CAN ALSO NOT BE GENERALISED FOR PUBLIC AND PRIVATE
SECTOR OF THE COUNTRY.
 RESPONDENTS MAY GIVE BIASED ANSWERS FOR THE REQUIRED DATA. SOME
OF THE RESPONDENTS DID NOT LIKE TO RESPOND.
PROCEDURE OF THE STUDY:

The study was collected by getting questionnaire filled by the SBI bank employees. Then the
data was tabulated and various tools like micro soft excel were used for the quantification of
the data collected.
INSTRUCTIONS GIVEN TO SAMPLE INDIVIDUALS:

The employee of SBI were asked to fill the questionnaire with appropriate details in the
questionnaires. The sample individuals were also requested to give true and fair picture of
the organisation and the working environment of the organisation and this would help us in
getting a fair picture of the organisation and help us to get the true finding from the study.

CHAPTER NO 03
COMPANY PROFILE

STATE BANK OF INDIA

The State Bank of India (SBI) is an
Indian multinational, public
sector banking and financial
services statutory body. It is
a government corporation statutory body
headquartered in Mumbai, Maharashtra.
SBI is ranked as 236th in the Fortune
Global 500 list of the world's biggest
corporations of 2019.[5] It is the largest
bank in India with a 23% market share
in assets, besides a share of one-fourth
of the total loan and deposits market.[6]
The bank descends from the Bank of
Calcutta, founded in 1806, via
the Imperial Bank of India, making it
the oldest commercial bank in the Indian
subcontinent. The Bank of
Madras merged into the other two
"presidency banks" in British India,
the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of
India, which in turn became the State
Bank of India in 1955.
[7]
The Government of India took control
of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's
central bank) taking a 60% stake, renaming it the State Bank of India.
State Bank of India (SBI) is the country's largest commercial bank, in terms of assets, deposits, and
employees.
Owned by the Indian government, it offers a range of general banking services from loans and
advances to corporate and individuals in India and abroad. Because it is state-owned, SBI is the
preferred banker for most public sector corporations. SBI, along with its associate banks, offers
micro-financing to entities such as self-help groups in rural areas that would otherwise have no
access to formal credit channels. Through its subsidiaries and joint ventures, SBI offers financial
services such as investment banking, brokerage services, asset management and insurance.

Although SBI's origins date back to the 19th century, it was formally established post-independence
on July 1, 1955 through the implementation of SBI Act, 1955. Upon its formal establishment, the
bank took over the assets of the Imperial Bank of India, which was formed in 1921 with the
amalgamation of three banks -- Bank of Bengal, Bank of Bombay and Bank of Madras. State Bank
of India went public in 1993 issuing 1.24 crore shares priced at Rs 100 each; the Government
continues to be the majority owner
HISTORY
The roots of the State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one
of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and
the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint
stock companies and were the result of royal charters. These three banks received the exclusive right to
issue paper currency till 1861 when, with the Paper Currency Act, the right was taken over by the
Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organized
banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the
Imperial Bank of India became the State Bank of India. In 2008, the Government of India acquired the
Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the
country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight banks
that had belonged to princely states into subsidiaries of SBI. This was at the time of the first Five Year
Plan, which prioritised the development of rural India. The government integrated these banks into the
State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est.
1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI acquired
in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942),
which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been
established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had
been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was
Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches.
SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in
Kerala.
There was, even before it actually happened, a proposal to merge all the associate banks into SBI to create
a single very large bank and streamline operations. ]
The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged
with SBI, reducing the number of associate state banks from seven to six. On 19 June 2009, the SBI board
approved the absorption of State Bank of Indore, in which SBI held 98.3%. (Individuals who held the
shares prior to its takeover by the government held the balance of 1.7% )

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also,
following the acquisition, SBI's total assets approached 10 trillion. The total assets of SBI and the State
Bank of Indore were 9,981,190 million as of March 2009. The process of merging of State Bank of Indore
was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the

bank. Mrs. Bhattacharya received an extension of two years of service to merge into SBI the five
remaining associate banks

Operations
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 16 regional hubs and 57 zonal offices
that are located at important cities throughout India.

Domestic presence
Samriddhi Bhavan, Kolkata
SBI has over 24000 branches in India. In the financial year 2012–13, its revenue was 2.005
trillion (US$28 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August
2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1
million accounts in rural areas and 1.57 million accounts in urban areas.
International presence
The State Bank of India branch located in Ramat Gan, Israel

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in
foreign markets among Indian banks.
SBI operates several foreign subsidiaries or affiliates.
In 1989, SBI established an offshore bank, State Bank of India International (Mauritius) Ltd. This then
amalgamated with The Indian Ocean International Bank (which had been doing retail banking in
Mauritius since 1979) to form SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd has 14 branches – 13
retail branches and 1 global business branch at Ebene in Mauritius. SBI Sri Lanka now has three

branches located in Colombo, Kandy and Jaffna. The Jaffna branch was opened on 9 September 2013.
SBI Sri Lanka is the oldest bank in Sri Lanka; it was founded in 1864.
State Bank of India branch at Southall, United Kingdom

In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches—nine
branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont,
California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia,
San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian Merchant Bank
and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.
In Nepal, SBI owns 55% of "Nepal SBI Bank Limited". (The state-owned Employees Provident Fund of
Nepal owns 15% and the general public owns the remaining 30%) Nepal SBI Bank Limited has branches
throughout the country.
In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.
In Indonesia, it owns 76% of PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million
in October 2005.
In January 2016, SBI opened its first branch in Seoul, South Korea.
Former Associate Banks

Main Branch of SBI in Mumbai

The merger went into effect from 1 April 2017. SBI acquired the control of seven banks in 1960. They
were the seven regional banks of former Indian princely states. They were renamed, prefixing them with
'State Bank of'. These seven banks were State Bank of Bikaner and Jaipur (SBBJ), State Bank of
Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Mysore (SBM), State Bank of
Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). All these banks were
given the same logo as the parent bank, SBI. The State Bank of India and all its associate banks used the
same blue Keyhole logo. The State Bank of India wordmark usually had one standard typeface, but also
utilized other typefaces. The wordmark now has the keyhole logo followed by "SBI".
The plans for making SBI a single very large bank by merging the associate banks started in 2008, and in
September the same year, SBS merged with SBI. The very next year, State Bank of Indore (SBN) also
merged.
Following a merger process, the merger of the 5 remaining associate banks, (viz. State Bank of Bikaner
and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of
Travancore); and the Bharatiya Mahila Bank) with the SBI was given an in-principle approval by the
Union Cabinet on 15 June 2016. This came a month after the
SBI board had, on 17 May 2016, cleared a proposal to merge its
five associate banks and Bharatiya Mahila Bank with itself.
On 15 February 2017, the Union Cabinet approved the merger of
five associate banks with SBI. An analyst foresaw an initial
negative impact as a result of different pension liability
provisions and accounting policies for bad loans.
Non-banking subsidiaries
Apart from five of its associate banks (merged with SBI since 1
April 2017), SBI's non-banking subsidiaries include:
 SBI Capital Markets Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI Life Insurance Company Limited
In March 2001, SBI (with 74% of the total capital), joined
with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company
named SBI Life Insurance company Ltd.
Other SBI service points

As of 31 March 2017, the SBI group had 59,291 ATMs .Since November 2017, SBI also offers an
integrated digital banking platform named YONO.

Listings and shareholding

As on 31 March 2017, Government of India held around
61.23% equity shares in SBI. The Life Insurance Corporation
of India, itself state-owned, is the largest non- promoter
shareholder in the company with 8.82% shareholding.
Shareholders Shareholding
Promoters: Government of
54.23%
India
FIIs/GDRs/OCBs/NRIs 18.17%
Banks & Insurance Companies 10.00%
Mutual Funds & UTI 8.29%
Others 9.31%
Total 100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, and the National Stock Exchange of India, where it is a constituent of the CNX Nifty.
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.
Employees
State Bank Institute of Credit and Risk Management, Gurugram

SBI is one of the largest employers in the country with 209,567 employees as on 31 March 2017, out of
which 23% were female employees and 3,179 (1.5%) were employees with disabilities. On the same date,
SBI had 37,875 Scheduled Castes (18%), 17,069 Scheduled Tribes (8.1%) and 39,709 Other Backward
Classes (18.9%) employees. The percentage of Officers, Associates and Subordinates was 38.6%, 44.3%
and 16.9% respectively on the same date. Around 13,000 employees joined the Bank in FY 2016–17.
Each employee contributed a net profit of ₹511,000 (US$7,200) during FY 2016-17.
COMPANY PROFILE OF SBI IN INDIA:
Date of Incorporation 31-Dec-1955
Date of Listing 03-Nov-1994
Management
Name Designation
Rajnish Kumar Chairman
Sanjiv Malhotra Director
Basant Seth Director
Bhaskar Pramanik Director
Rajiv Kumar Director
Pravin Hari Kutumbe Director
Rajnish Kumar Managing Director
P K Gupta Managing Director
Dinesh Kumar Khara Managing Director

B Sriram Managing Director
Chandan Sinha Nominee Director
Pushpendra Rai Nominee Director
Girish K Ahuja Nominee Director
GOALS AND OBJECTIVES:

The State Bank of India has been established to operate on the normal commercial principles, with
the only difference that, unlike other commercial banks in the country, it takes into consideration
and responds in a progressively liberal manner the financial requirements of cooperative
institutions and small scale industries, particularly in the rural areas of the country.
The main objectives of the State Bank are:

(i) To act in accordance with the broad economic policies of the government;
(ii) To encourage and mobilize savings by opening branches in rural and semi-urban areas and to promote
rural credit;
(iii) To establish government partnership in the provision of cooperative credit;
(iv) To extend financial help for the establishment of licensed warehouses and cooperative marketing
societies;
(v) To provide financial help to the small scale and cottage industries;
(vi) To provide remittance facilities to the banking institutions.
The State Bank of India acts as an agent of the Reserve Bank in all those places where the latter does not
have its branches.

Various forms of assistance to the industries by the Bank are given below:
I. Industrial Finance:
In tune with the rapid industrial growth in the country, the loans and advances of the State Bank to the
industrial sector has shown substantial growth over the years. As compared to the amount of Rs. 9771
crore at the end of 1987, the advances to the industrial sector (including the small scale sector) increased
to Rs.15519 crore at the end of March 1990.
Bank’s Corporate Banking Group:
It consists of three strategic business units, i.e.- (a) Corporate Accounts Group (CAG), (b) Leasing
Strategic Business Units (Leasing SBU) and (c) Projects Finance Strategic Business Unit (Project Finance
SBU).
(i) The CAG is a single window shop for the entire range of financial services needed for the large
corporates. At present it caters to a more than 200 corporates in India. CAGs advances were Rs. 16943
crore at end March 2001.
(ii) The Leasing SBU performs its role as a leading provider of big-ticket leases to corporates.
(iii) The Project Finance SBU, an active infrastructure advisory services group, focuses on core and
infrastructure sectors like power, telecommunications, oil and gas, roads, bridges, ports and urban
infrastructure.
II. Finance to Small Scale Industries:
The State Bank of India’s finance to small scale industries has also increased substantially over the years.
In 1969, the advances to small scale industries were Rs.104 crore, which increased to Rs. 12718 crore in
March 2001. Similarly, the Bank’s small business finance increased from Rs. 7 crore in 1969 to Rs. 3711
crore in March 1998.
Other facilities provided by the Bank to small-scale and cottage and village industries are as given
below:
(i) The Bank offers technical and financial consultancy to the units on its books to enable them to
overcome problems of technological obsolescence, marketing, management, etc.

(ii) Under its Equity Fund Scheme, the Bank makes available the equity assistance in the form of interest
– free loans repayable on a long – term basis to the needy entrepreneurs to set up new small- scale units.
(iii) The Bank conducts Entrepreneurial Development Programmes to promote entrepreneurship for the
development of ancillaries near large project areas and of high – tech industries, such as electronics,
computer peripherals, etc.
(iv) To assist the export efforts of the small – scale industrialists, arrangements have been made to extend
the Whole Turnover Packing Credit Guarantee Scheme (WTPCG Scheme) to small – Scale industries
from January 1, 1988.
(v) To increase opportunities for self – employment in the tertiary sector, the Bank provides finance to
small business enterprises.
(vi) Project Uptech, set up by the Bank in 1988 for bringing about technology upgradation of small and
medium enterprises, has taken up 19 projects upto March 2001. Six new projects are in the pipeline.
COMPITITORS OF STATE BANK OF INDIA
TOP PERFORMING PUBLIC SECTOR BANK

 Andhra bank
 Allahabad bank
 Punjab national bank
 Dena bank
 Vijaya bank
TOP PERFORMING PRIVATE SECTOR BANK
 HDFC BANK
 ICICI BANK
 AXIS BANK
 Kotak Mahindra bank
 Centurion bank of punjab

TOP PERFORMING FOREIGN BANKS

 Citizen bank
 Standard chartered
 HSBC bank
 ABN AMRO bank
 American express
REWARDS AND RECOGNITION
LIFE INSURANCE PROVIDER OF THE YEAR 2020
FINANCIAL COMPANY OF THE YEAR 2020

INDIA’S LEADING LIFE INSURANCE COMPANY
GOLD SHEALD FROM ICAC FOR THE FINANCIAL YEAR 2019-20

RIMS INDIA ERM AWARD OF DISTINCTION 2018
FOXGLOVE AWARD 2019

CHAPTER NO 04
DATA ANALYSIS AND INTERPRETATION

TABLE 1.1
TABLE SHOWING THE AGE OF THE RESPONDENTS
CHOICES PERCENTAGE COUNT

20-30 70% 21
30-40 23.33% 7
40-50 6.67% 2
GRAPH 1.1
GRAPH SHOWING THE AGE OF THE RESPONDENTS
25
20
15
10
0
20-30 30-40 40-50
INTERPRETATION:
The above graph is a representation of 21 respondents who belong to the age group of 20 to 30, and the
rest 7 belongs to the age group of 30 to 40, and the last 2 belong to the age group of 40 to 50.

TABLE 1.2
TABLE SHOWING THE RESPONSE OF THE EMPLOYEES HAPPY FOR THEIR PERFORMANCE

YES 66.67% 20
NO 33.33% 10
GRAPH 1.1
GRAPH SHOWING THE RESPONSES OF THE EMPLOYEE HAPPY FOR THEIR PERFORMANCE
YES
NO
INTERPRETATION:
The above graph represents that 20 of my respondents are happy for their performance done in the
organization. Even though they are not recognized or awarded. On the other hand some are not agreeing
to the statement given.

TABLE 1.3
TABLE SHOWING THE MANGEMNT OF TEAM GOALS
CHOICES PECENTAGE COUNT

Strongly agree 23.33% 7
Agree 70% 21
Disagree 6.67% 2
Strongly disagree 0.00% 0
GRAPH 1.3
GRAPH SHOWING THE MANAGEMENT OF TEAM GOALS
25
20
15
Column1
10
0
STRONFLY AGREE AGREE DISAGREE STRONGLY DISAGREE
INTERPRETATION:
The above graph represents that 7 of my respondents strongly agree that the organization helps to manage
team goals. 21 of them agree. 2 of them are disagreeing and none of the participants are agreeing strongly
since the organization is satisfying the team goals.

TABLE 1.4
TABLE SHOWING THE NEED OF IMPROVEMENT IN YOUR ORAGNISATIONAL CULTURE

Agree 50.00% 15
Disagree 10.00% 3
GRAPH 1.4
GRAPH SHOWING THE NEED OF IMPROVEMENT IN YOUR ORGANISATIONAL CULTURE
16
14
12
10
0
strongly agree agree disagree strongly disagree
INTERPRETATION:
Here, 12 of my respondents strongly agree that the company is need of improvement in its culture, 15 of
them also agree to the above statement, where as, 10 of them disagree. Hence it is clearly shown the
company is in need to improve its company culture.

TABLE 1.5
TABLE SHOWING THE MANAGERS BEHAVIOUR AS PER COMPANY ETHICS

Agree 73.33% 33
Disagree 13.33% 4
GRAPH 1.5
GRAPH SHOWING THE MANAGERS BEHAVIOUR AS PER COMPANY ETHICS
25
20
15
10
0
INTERPRETATION:
Here the above graph represents that 13.33% of the respondents are strongly agreeing to the statement,
73.33% are also agreeing to the statement, 13.33% also disagreeing to the above statement. Hence the
majority is 73.33% are completely agreed.

TABLE 1.6
TABLE SHOWING THE LEVEL OF TRUST ON CO-WORKERS

Yes 63.33% 19
No 20.00% 6
May be 16.67% 5
GRAPH 1.6
GRAPH SHOWING THE LEVEL OF TRUST ON CO WORKERS
YES
NO
MAY BE
INTERPRETATION:
19 of the employees have trust towards their co-workers. 6 say ‘No’ and 5 of them are in a confused
mindset towards this tricky question.

TABLE 1.7
TABLE SHOWING THE PROGRESS MADE BY THE EMPLOYEES
CHOISES PERCENTAGE COUNT

Highly satisfactory 30.00% 9
Satisfactory 20.00% 20
Dissatisfactory 3.33% 1
Highly dissatisfactory 0.00% 0
GRAPH 1.7
GRAPH SHOWING THE PROGRESS MADE BY THE EMPLOYEES
strongly disagree
dissatisfactory
satisfactory
highly satisfactory
0 5 10 15 20 25
INTERPRETATION:
The above graph represents that 30% of the employees are highly satisfied with their performance, and
66.67% of the employees that they are satisfied, that 3.33% of them say that they are not satisfied about
their work in the organization.

TABLE 1.8
TABLE SHOWING THE ORGANISATION IS EFFECTIVE IN GETTING YOU TO MEET ITS

EFFECTIVENESS

Agree 60.00% 18
Disagree 13.33% 4
GRAPH 1.8
GRAPH SHOWING THE ORGANISATION IS EFFECTIVE IN GETTING YOU TO MEET ITS

EFFECTIVENSS
20
18
16
14
12
10
0
INTERPRETATION:
Here, the above graph represents that 8 of my respondents strongly agree to the above statement. 18 of
them also gave their responses as agreed. 4 of them say that they disagree with the above statement made.

TABLE 1.9
TABLE SHOWING THE ORGANISATION IS HELPING IN CARRIER GROWTH OF EMPLOYEES

Agree 56.67% 17
Disagree 20.00% 6
GRAPH 1.9
GRAPH SHOWING THE ORGANISATION IS HELPING IN CARRIER GROWTH OF EMPLOYEES
18
16
14
12
10
0
INTERPRETATION:
Here, 6 of them says that they strongly agree to the above statement, 17 of them has set their option as
agree, whereas 6 of them disagreed with the statement and 1 of them strongly disagreed with the
statement. Hence it is proven that the company is helping in the carrier growth of the employee.

TABLE 1.10
TABLE SHOWING WHEATHER THE EMPLOYEES ARE AWARE OF THEIR WORK

YES 83.33% 25
NO 16.67% 5
GRAPH 1.10
GRAPH SHOWING WHEATHER THE EMPLOYEES AWARE OF THEIR WORK
INTERPRETATION;
Here, the above graph clearly states that 25 of the respondents are aware of their work and are satisfied in
the organization. 5 of them are not aware of their work which is asked to perform in the organization.

TABLE 1.11
TABLE SHOWING THE MANAGEMNT ENCOURAGES PERFORMANCE OF THE EMPLOYEE

Agree 66.67% 20
Disagree 16.67% 5
TABLE 1.11
GRAPH SHOWING THE MANAGEMENT ENCOURAGES PERFORMANCE OF THE EMPLOYEE
25
20
15
10
0
Strongy agree agree disagree strongly diagree
INTERPRETATION:
Here, the above graph represents that 4 of them strongly agree to the above statement, 20 of them also
agree to the statement, whereas 5 of them disagree to the statement and only 1 strongly disagrees to the
statement made above.

TABLE 1.12
TABLE SHOWING WHEATHER THE OPINIONS OF EMPLOYEES ARE TAKEN FOR

CONSIDERATION

Yes 56.67% 17
No 20.00% 6
May be 23.33% 7
GRAPH 1.12
GRAPH SHOWING WHEATHER THE OPINIONS OF EMPLOYYES ARE TAKEN FOR

CONISIDERATION
yes
no
may be
INTERPRETATION:
Here, 17 of their opinions are considered. 6 of them disagree, 7 of them say that their opinions may or
may not be considered.

TABLE 1.13
TABLE SHOWING WHEATHER THE EMPLOYEES ARE GROWING IN ORGANISATION

Agree 56.67% 17
Disagree 13.33% 4
GRAPH 1.13
GRAPH SHOWING WHEATHER THE EMPLOYEES ARE GROWING IN ORGNISATION
18
16
14
12
10
0
INTERPRETATION:
This graph represents that 30 of my respondents say that they have more opportunity to learn and grow
and 17 of them agree to the above statement whereas, 4 of them disagree to the statement made above.

TABLE 1.14
TABLE SHOWING THE ISSUES ARE SOLVED BY THE COMPANY

Agree 46.67% 14
Disagree 23.33% 7
GRAPH 1.14
GRAPH SHOWING THE ISSUES ARE SOLVED BY THE COMPANY
14
12
10
0
INTERPRETATION:
Here, this graph represents that 9 of them strongly agree and 14 of them agree that the company resolves
the issue, whereas 7 of them disagree to the statement made above.

TABLE 1.15
TABLE SHOWING THE COMPANY PROVIDES BEST SUGGESIONS TO THE EMPLOYEE

Agree 53.33% 16
Disagree 13.33% 4
GRAPH 1.15
GRAPH SHOWING THE COMPANY PROVIDES BEST SUGGESSION TO THE EMPLOYEE
16
14
12
10
0
INTERPRETATION:
Here, in this graph 8 of them strongly agree to the statement and 16 of them agree to the above statement.
4 of them disagree and 3 of them strongly disagree to the statement.

TABLE 1.16
TABLE SHOWING CONFLICT MANGEMENT REDUCES WASTAGE OF TIME AND HELPS TO

ACHIEVE GOALS

Agree 40.00% 12
Disagree 30.00% 9
GRAPH 1.16
GRAPH SHOWING CONFLICT MANAGEMENT REDUCES WASTAGE OF TIME AND HELPS TO

ACHIEVE GOALS
strongly disagree
diagree
agree
strongly agree
0 2 4 6 8 10 12 14
INTERPRETATION:
In respect to Conflicts management reduces wastages of time, 7 of them strongly agreed. 12 of them
agree. 9 of them disagree and 2 of them strongly disagree to the above.

TABLE 1.17
TABLE SHOWING CONFLICT MANAGEMENT HELPS IN TEAM BUILDING

Agree 50.00% 15
Disagree 30.00% 9
GRAPH 1.17
GRAPH SHOWING CONFLICT MANAGEMENT HELPS IN TEAM BULDING
16
14
12
10
0
Strongly agree agree disagree strongly disagree
INTERPRETATION:
Here, 6 of them agrees and 15 of them disagrees to the statement 9 of them disagrees to the above
statement that conflict management do not help in team building.

CHAPTER NO:05
SUMMARY OF FINDINGS
SUMMARY AND FINDINGS

 It seems that the employees have a friendly environment in the company .

 Most of the employees working in SBI are happy about their performance in the organisation.
 As per my research 66.67% of my respondents are happy with their work even if it is nor
recognized by the company.
 They serve a very proper information to the customers of SBI.
 Employees also belive that the organisation is helping them to manage team goals.
 70%of my respondents agree that team work is much effective than team work.
 As per my research improvement of company culture is important, because most of my
respondents agree to the above statements.
 The main objective of any company is to follow their ethics in the organisation. Most of my
respondents strongly belive that the organisation is following the company ethics
 Another tricky question asked to my responds was that do they trust they co-workers. This
made me analyse that the employees have a better relationship with their co-workers as well.
 Most of my responders are satisfied with their progress in the organisation.
 The organisation is effective in meeting the effectiveness of the employees as well.
 The employees also agree to the statement that they also agree that the company is helping
them in their carrier growth.
 Most of my responders are also aware about what work is expected by them at work.
 66.67% of my responders also agree that the management encourages the work performed by
them.
 Responders also agree that the company also considers the opinions which is given by them.
 The company also gives an opportunities to learn and grow . 9 of them strongly agree to the
statement and 17 of them agree to the statement.
 In any organisation conflicts plays a very major role . the responders also say that the
management is effective in solving those kinds of conflicts.
 Employees also belives that the conflict management reduces wastage of time and helps to
achieve goals.
 Responders also belive that conflict management helps in team building.
 Overall the company satisfies in all means to the employees.

CHAPTER NO:06
SUGGESSTION AND CONCLUSION

SUGGESTIONS:
 As per the research it is clearly understood that the employees are happy about their work
done in the organisation, and the work which are committed by them as well.
 The bank must also conduct any kind of refreshment activities and make the employee feel
much better.
 The organisation can also make some changes in their working environment.
 Bank should concentrate more on the benifits which are provided by the employees.
 Overall the culture is doing great.
CONCLUSION:
As per my observation the company culture is doing a very great job in the organisation, there are also
some situation where there is a need of improvement in the culture as well. The organisation also
concentrates on conflict management. The company is following all the legal ethics made in the
organisation, The employees are also happy for their performance performed . the employees also meet
their effectiveness. The management encourages all the work which is done in the organisation. It also
considers the opinions which are given by the employees. Overall the company is having a positive
feedback and also successful in meeting the expectation of the employees.

ANNEXURE
QUESTIONNAIRE ON ORGANISATIONAL CULTURE OF STATE BANK OF INDIA.
Dear Respondents,
We are conducting a research on “the organizational culture of SBI . I am pleases to have you as my
respondents and really appreciate your contribution to the academic exercise. Your inputs will provide the
most valuable information in disseminating finding of my research project. The information given will be
treated as private and confidential and will only be used for the purpose of this research only.
Sincerely yours,
Tejaswini R.
PROFILE OF RESPONDENTS
NAME:
AGE:
 20-30
 30-40
 40-50
GENDER:
MALE FEMALE
QUALIFICATION:
 Undergraduate
 Graduate
 Post graduate
 other
sl.n Questions: Strongly agree disagree Strongly

o agree disagree
The organisation helps
1. you to manage team
goals.
your company culture
2. is in need of
improvement.
The organisation is
3. effective in getting you
to meet its
effectiveness.
The organisation is
4. helping in your carrier
growth.
The management
5. encourages your
performance.
6. In the last year, have
you had opportunities
at work to learn and
grow.
Does your company
7. resolves your issues.
The company provides
8. you the best
suggessions.
Conflict management
9. reduces wastage of
time and helps to
achieve goals.
10. Conflict management
helps in team building.

Sl.no Question yes no May be

Do you feel happy for
11 your performance even if
it is not rewarded.
Do you trust your co-
12 workers.
Do you know what is
13 expected by you at work.
A work do you opinions
14 seems to count.
15. The manager behave according to company ethics.

16. How do you feel about the progress made in the organisation.
17. Any suggession about the company.

BIBLIOGRAPHY
REFRENCE BOOKS
 Akin G and Hopelian D (1986) “ FINDING THE CULTURE OF PRODUCTIVITY

ORGANISAATIONAL DYNAMICS” .
 Alder N J (1997) “INTERNATIONAL DIMENSIONS OF ORGANISATIONAL
th
BEHAVIOUR: (4 ed).
 Edgar H and Schein Pele “ORGANISATIONAL CULTURE AND LEADERSHIP”
 Robert Kegan “ THE EVERYONE CULTURE”.
REFERED WEBSITES
 https://www.goodreads.com/shelf/show/organisational-culture
 https://en.wikipedia.org/wiki/Organizational_culture
 https://www.mdpi.com/2071-1050/9/5/781/pdf


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CHAPTER NO: 01

PART A: ABOUT THE SPECIALIZATION

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 2

At the macro-level, HR is in charge of overseeing organizational leadership and culture. HR also ensures

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 3

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 4

the profession, institutions of higher education, professional associations, and companies have established

Characteristics of human resource management

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 5

maintain cordial relationship it’s between labor and management .

NEED FOR HUMAN RESOURCE MANAGEMENT

1. For Good Industrial Relations:

2. Create Organisational Commitment:

4. Meeting with Changing Environment:

5. Change in Political Philosophy:

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 6

6. Enhanced Pressure On Employees:

7. Meeting Research and Development Requirements:

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 7

 HRM in Personnel Management: This is typically direct manpower management that involves

It also relates to supervision, employee counseling, establishing harmonious relationships with

 HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 8

3. To secure the integration of individual or groups within the organization by co-ordination of

5. To attain an effective utilization of human resources in the achievement of organizational

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 9

9. To consider and contribute to the minimization of socio-economic evils such as

10. To provide an opportunity for expression and voice management.

11. To provide fair, acceptable and efficient leadership.

 It is pervasive in nature as it is present in all enterprises.

 Its focus is on results rather than on rules.

 It tries to help employees develop their potential fully.

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 10

 It encourages employees to give their best to the organization.

 It is all about people at work, both as individuals and groups.

 It tries to put people on assigned jobs in order to produce good results.

 It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology,

The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation,

INDIAN ACADEMY DEGREE COLLEGE- AUTONOMOUS Page 11

Human Resource Planning: Generally, we consider Human Resource Planning as the process of

 Recruitment: It aims at attracting applicants that match a certain Job criteria.

Employee Remuneration and Benefits Administration: The process involves deciding upon

Employee Relations: Employee retention is a nuisance with organizations especially in industries

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Functions of Human Resource Management

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 Grouping of personnel activity into functions or positions

 Assigning different groups of activities to different individuals

 Delegating authority according to the tasks assigned and responsibilities involved

 Coordinating activities of different employees

Browse more Topics Under Human Resource Management

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 Importance and Limitations of HRM

 Role of Personnel Manager

 Qualities of the HR Manager

 Managerial Functions of HR Manager

 Operative Functions of HR Manager

 Training and Development

 Traditional Methods of Appraisal

 Modern Methods of Appraisal

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FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT.