CHAPTER-1

1.1 HUMAN RESOURCE MANAGEMENT

Human Resource Management or Personnel management is the activity of managing
personnel, usually employees.In any organization, managing personnel is the process of
making sure the employees (not the customers) are as productive as they can be. This can
include hiring, firing, or transferring people to/from jobs they can do most productively.
This subject is a major at many universities, or a minor in the business school. It is also
known as personnel administration, which is functionally an equivalent term.
1.2 Meaning of Human Resource Management:
A business unit needs employees to look after different activities. This is called manpower
or human resource. Such human resource needs to be developed fully so that it will make
positive contribution for the progress and prosperity of a business unit. For this systematic
development and management of human resources is necessary. Human Resource
Management (HRM) deals with:
(a) Training
(b) Self-development
(c) Promotions
Performance appraisal of manpower recruited in an organization HRM is an organized
learning experience aimed at matching the organizational need for career growth and
development. It is a process involving series of learning activities designed to acquire
desired level of competence among employees. HRM is a continuous process and it needs
money. Such investment creates a team of efficient, skilled and trained manpower which
brings success and stability to a business unit. HRM programmes offer long term benefits to
an organization.
1.3 Characteristics of Human Resource Management:
(1) Upgrading Manpower:
HRM is basically concerned with the upgrading of manpower working in an organization.
This leads to improvement in the individual performance of an employee and also
corresponding improvement in the organizational performance.
(2). Stress on Training:
HRM includes various schemes arranged for providing education, guidance, training and
opportunities to learn and develop employees of all categories and working in different

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departments. There is an integrated use of sub-systems (training, career developments,
organizational development) in the HRM programme.
(3). Attention to learning and career development:
Learning, self-development, career developments are possible through HRM programmes.
These are the core areas of HRM. Career development is possible through joining training
courses, reading books and periodicals. Learning and career development raise the capacity
of employees to work at highest levels. They are given higher positions with monetary
benefits.
(4). Organizational Development:
HRM includes organizational development, which includes effective communication within
the organization, coordination of different activities elimination of conflicts of different
types and creation of orderly atmosphere in the whole organization.
(5). Team Spirit:
HRM is basically for developing team spirit in the whole organization. For this, departments
and levels of management are properly integrated. Team spirit facilitates orderly growth of
the organization in the right direction.
(6). Huge spending by Management:
All companies invest huge money on HRM activities but such expenditure is absolutely
essential for survival in the present competitive business world. HRM programmes create
matured, skilled and efficient manpower, which is a valuable asset of a business unit.
(7). Termination of Employment:
Termination is an unpleasant part of any manager‘s job. Employees occasionally must be
terminated for breaking rules of failing to perform adequately.
1.4 Need and Importance of Human Resource Management:
(1) To create stable labor force:
HRM programmes are needed in order to create stable, efficient, skilled and matured
manpower required by an enterprise for the present and future period.
(2) To update the quality of manpower:
HRM activities are needed for updating the quality of manpower as per the growing and
changing needs of an enterprise. This avoids managerial obsolescence. Even the vacancies at
higher levels can be filled in internally due to HRM programmes as they provide training
and opportunities of self-development to employees working at lower levels.
(3) To develop strength for survival:

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HRM programmes are necessary for survival in the present competitive marketing
environment. An enterprise can face market competition only by improving quality,
reducing costs and avoiding wastages. All this is possible through HRM.
(4) To face challenges of technological changes:
Technological changes are taking place rapidly in every area of business. HRM
programmes are needed in order to absorb technological changes taking place with speed. In
fact, introduction of new technology, computers, automation, etc. will not be possible unless
training is provided to the manpower.
(5) To satisfy the demand of self-development of employees:
HRM is needed to meet the needs of employees in regard to self-development and career
development aspirations. Employees demand, training facilities, refresher courses,
promotions and transfers, career guidance, etc. for their self-development. HRM
programmes are needed to fulfill self-development and career development of employees.
(6) To meet future manpower needs:
HRM is needed to meet the future manpower needs of the organization. Executives,
managers, supervisors leave the job or retire due to age factor. Competent juniors must take
their positions. HRM is needed in order to keep ready a team of competent managers as a
second line of defence.
1.5 HR Practices and Methods
A key focus of the human resource management is highlighted in the role of staffing,
performance management, training and development, and compensation that plays
indifferent types of business strategies. With the acquisition and preparation of human
resources, including planning, recruitment, selection, and training can affect the whole
organizational performance.
The HR planning, the start of the strategy, illustrates the process of developing human
resource plan. The strengths and weaknesses of staffing options such as outsourcing, use of
contingent workers, and downsizing are involved in planning.
The recruitment process is done strategically to determine the talented employee fit for the
position. The selection process emphasizes the ways in minimizing errors in employee
selection and placement to improve the company‘s competitive position. The selection
method standards such as validity and reliability are utilized.
An effective training systems of the manager‘s role in determining employees‘ readiness for
training, creating a positive learning environment, and ensuring the training is used on the

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job. Beyond the human resource strategies are the rewarding and compensating that can
strengthen or weaken the employee effectiveness. In order to give recognition and increase
motivational levels amongst the employees, some Company linked the individual
performance in an incentive scheme – or for some rewards that may come into any form .In
summary, all of the HRM strategies and function should be aligned to help the company
meet its objectives – as well as focusing on their customers .
The best practice approach assert that certain HR practices are found to consistently lead to
higher organizational performance, independent of an organization‘s stated strategy. The
high performance HR practices foster innovation through the development of innovation
values, encouraging of information sharing, goal setting and appropriate training and
development.
Job analysis, Job design and Job evolution
A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job. It can be explained with the help
of the following diagram
1.6 Job analysis
 Job description Job specification
 Job title/ name of the job Qualification
 Working hours Qualities
 Duties and responsibilities Experience
 Working conditions Family background
 Salary and incentives Training
 Machines to be handled on the job Interpersonal skills
As mentioned in the above table job analysis is divided into 2 parts
a) Job description
Where the details regarding the job are given.
b) Job specification
Where we explain the qualities required by people applying for the job.
Need/importance/purpose/benefits of job analysis
Def.: - A job is defined as a collection of duties and responsibilities which are given together
to an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job.

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The following are the benefits of job analysis.
1. Organizational structure and design:-
Job analysis helps the organization to make suitable changes in the organizational structure,
so that it matches the needs and requirements of the organization. Duties are either added or
deleted from the job.
2. Recruitment and selection:-
Job analysis helps to plan for the future human resource. It helps to recruit and select the
right kind of people. It provides information necessary to select the right person.
3. Performance appraisal and training/development:-
Based on the job requirements identified in the job analysis, the company decides a training
program. Training is given in those areas which will help to improve the performance on the
job.Similarly when appraisal is conducted we check whether the employee is able to work in
a manner in which we require him to do the job.
4. Job evaluation:-
Job evaluation refers to studying in detail the job performance by all individual. The
difficulty levels, skills required and on that basis the salary is fixed. Information regarding
qualities required, skilled levels, difficulty levels is obtained from job analysis.
5. Promotions and transfer:-
When we give a promotion to an employee we need to promote him on the basis of the skill
and talent required for the future job. Similarly when we transfer an employee to another
branch the job must be very similar to what he has done before. To take these decisions we
collect information from job analysis.
6. Career path planning:-
Many companies have not taken up career planning for their employees. This is done to
prevent the employee from leaving the company. When we plan the future career of the
employee, information will be collected from job analysis. Hence job analysis becomes
important or advantageous.
7. Labour relations:-
When companies plan to add extra duties or delete certain duties from a job, they require the
help of job analysis, when this activity is systematically done using job analysis the number
of problems with union members reduce and labour relations improve.
8. Health and safety:-
Most companies prepare their own health and safety, plans and programs based on job

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analysis. From the job Analysis Company identifies the risk factor on the job and based on
the risk factor safety equipment‘s are provided.
9. Acceptance of job offer:-
When a person is given an offer/appointment letter the duties to be performed by him are
clearly mentioned in it, this information is collected from job analysis, which is why job
analysis becomes important.
Methods of job analysis
Def: - A job is defined as a collection of duties and responsibilities which are given together
to an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job.There are different methods used
by organization to collect information and conduct the job analysis. These methods are
1. Personal observation:-
In this method the observer actually observes the concerned worker. He makes a list of all
the duties performed by the worker and the qualities required to perform those duties based
on the information collected, job analysis is prepared.
2. Actual performance of the job:-
In this method the observer who is in charge of preparing the job analysis actually does the
work himself. This gives him an idea of the skill required, the difficulty level of the job, the
efforts required etc.
3. Interview method:-
In this method an interview of the employee is conducted. A group of experts conduct the
interview. They ask questions about the job, skilled levels, and difficulty levels. They
question and cross question and collect information and based on this information job
analysis is prepared.
4. Critical incident method:-
In this method the employee is asked to write one or more critical incident that has taken
place on the job. The incident will give an idea about the problem, how it was handled,
qualities required and difficulty levels etc. critical incident method gives an idea about the
job and its importance. (A critical means important and incident means anything which takes
place in the job)
5. Questionnaire method: -
In this method a questioner is provided to the employee and they are asked to answer the
questions in it. The questions may be multiple choice questions or open ended questions.

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The questions decide how exactly the job analysis will be done. The method is effective
because people would think twice before putting anything in writing.
6. Log records:-
Companies can ask employees to maintain log records and job analysis can be done on the
basis of information collected from the log record. A log record is a book in which
employee‘s record/writes all the activities performed by them on the job. The records are
extensive as well as exhausted in nature and provide a fair idea about the duties and
responsibilities in any job.
7. HRD records: -
Records of every employee are maintained by HR department. The record contain details
abouteducational qualification, name of the job, number of years of experience, duties
handled, anymistakes committed in the past and actions taken, number of promotions
received, area of work,core competency area, etc. based on these records job analysis can be
done.
Job design

Definitions: -
Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization.
Job analysis helps to develop job design and job design matches the requirements of the job
with the human qualities required to do the job.
Factors affecting job design: - There are various factors which affect job design in the
company.
Factors affecting job design
1. Organizational factors
2. Environmental factors
3. Behavioural factors
I] Organizational factors:-
Organizational factors to refer to factors inside the organization which affect job design they
are
a) Task characteristics:-

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Task characteristics refer to features of the job that is depending on the type of job and the
duties involved in it the organization will decide, how the job design must be done. In case
the company is not in a position to appoint many people; a single job may have many duties
and vice versa.
b) The process or flow of work in the organization:-
There is a certain order in which jobs are performed in the company. In case the company
wishes it could combine similar job and give it to one person this can be done if all the jobs
come one after the other in a sequence.
c) Ergonomics:-
Ergonomics refers to matching the job with physical ability and characteristics of the
individual and in providing an office environment which will help the person to complete
the jobs faster and in a comfortable manner.
d) Work practices:-
Every organization has different work practices. Although the job may be the same the
method of doing the job differs from company to company. This is called work practice and
it affects job design.
II] Environmental factors:-
Environmental factors which affect job design are as follows
a) Employee availability and ability:-
Certain countries face the problem of lack of skilled labour. They are not able to get
employees with specific education levels for jobs and have to depend on other countries due
to this job design gets affected.
b) Social and cultural expectations :-
The social and cultural conditions of every country is different so when an MNC appoints
an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc. to
suit the Indian conditions. This applies to every country and therefore job design will change
accordingly.
III] Behavioral factors:-
Job design is affected by behavioral factors also. These factors are
a) Feedback: -
Job design is normally prepared on the basis of job analysis and job analysis requires
employee feedback based on this employee feedback all other activities take place. Many
employees are however not interested in providing a true feedback because of fear and

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insecurity. This in turn affects job deign.
b) Autonomy:-
Every worker desires a certain level of freedom to his job effectively. This is called
autonomy. Thus when we prepare a job design we must see to it that certain amount of
autonomy is provided to the worker so that he carries his job effectively.
c) Variety:-
When the same job is repeated again and again it leads to burden and monotony. This leads
to lack of interest and carelessness on the job. Therefore, while preparing job design certain
amount of variety must be provided to keep the person interested in the job.
Methods of job design
There are various methods in which job design can be carried out. These methods help to
analysis the job, to design the contents of the and to decide how the job must be carried
out.these methods are as follows: -
I. Job rotation
II. Job enlargement
III. Job enrichment
I. Job Rotation: -
Job rotation involves shifting a person from one job to another, so that he is able to
understand and learn what each job involves. The company tracks his performance on every
job and decides whether he can perform the job in an ideal manner. Based on this he is
finally given a particular posting.Job rotation is done to decide the final posting for the
employee e.g. Mr. A is assigned to the marketing department whole he learns all the jobs to
be performed for marketing at his level in the organization .after this he is shifted to the sales
department and to the finance department and so on. He is finally placed in the department
in which he shows the best performance Job rotation gives an idea about the jobs to be
performed at every level. Once a person is able to understand this he is in a better
understanding of the working of organization
Advantages of job rotation
i. Avoids monopoly:-Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job
ii. Provides an opportunity to broaden one’s knowledge :-Due to job rotation the
person is able to learn different job in the organization this broadens his knowledge
iii. Avoiding fraudulent practice:-In an organization like bank jobs rotation is

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 undertaken to prevent employees from doing any kind of fraud i.e. if a person is
handling a particular job for a very long time he will be able to find loopholes in the
system and use them for his benefit and indulge (participate) in fraudulent practices
job rotation avoids this.
Disadvantages of Job Rotation
i. Frequent interruption:-
Job rotation result in frequent interruption of work .A person who is doing a particular job
and gets it comfortable suddenly finds himself shifted to another job or department .this
interrupts the work in both the departments
ii. Reduces uniformity in quality :-
Quality of work done by a trained worker is different from that of a new worker .when a
new worker I shifted or rotated in the department, he takes time to learn the new job, makes
mistakes in the process and affects the quality of the job.
iii. Misunderstanding with the union member:-
Sometimes job rotation may lead to misunderstanding with members of the union. The union
might think that employees are being harassed and more work is being taken from them. In
reality this is not the case.
Job enlargement: -
Job enlargement is another method of job design when any organization wishes to adopt
proper job design it can opt for job enlargement. Job enlargement involves combining
various activities at the same level in the organization and adding them to the existing job. It
increases the scope of the job.
It is also called the horizontal expansion of job activities.
Jon enlargement can be explained with the help of the following example - If Mr. A is
working as an executive with a company and is currently performing 3 activities on his job
after job enlargement or through job enlargement we add 4 more activities to the existing job
so now Mr. A performs 7 activities on the job.It must be noted that the new activities which
have been added should belong to the same hierarchy level in the organization. By job
enlargement we provide a greater variety of activities to the individual so that we are in a
position to increase the interest of the job and make maximum use of employee‘s skill. Job
enlargement is also essential when policies like VRS are implemented in the company.
1.7 Advantages of job enlargement
1. Variety of skills:-

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Job enlargement helps the organization to improve and increase the skills of the employee
due to organization as well as the individual benefit.
2. Improves earning capacity:-
Due to job enlargement the person learns many new activities. When such people apply for
jobs to other companies they can bargain for more salary.
3. Wide range of activities:-
Job enlargement provides wide range of activities for employees. Since a single employee
handles multiple activities the company can try and reduce the number of employee‘s. This
reduces the salary bill for the company.

Disadvantages of job enlargement

1. Increases work burden:-
Job enlargement increases the work of the employee and not every company provides
incentives and extra salary for extra work. Therefore the efforts of the individual may
remain unrecognized.
2. Increasing frustration of the employee:-
In many cases employees end up being frustrated because increased activities do not result
in increased salaries.
3. Problem with union members:-
Many union members may misunderstand job enlargement as exploitation of worker and
may take objection to it.
III. Job enrichment: -
Job enrichment is a term given by Fedric Herzberg. According to him a few motivators are
added to a job to make it more rewarding, challenging and interesting. According to
Hertzberg the motivating factors enrich the job and improve performance.
The motivating factors can be
a. Giving more freedom.
b. Encouraging participation.
c. Giving employees the freedom to select the method of working.
d. Allowing employees to select the place at which they would like to work.
e. Allowing workers to select the tools that they require on the job.
f. Allowing workers to decide the layout of plant or office.

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Job enrichment gives lot of freedom to the employee but at the same time increases the
responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies
the needs of the employees.
Advantages of job enrichment
1. Interesting and challenging job:-
When a certain amount of power is given to employees it makes the job more challenging
for them, we can say that job enrichment is a method of employee empowerment.
2. Improves decision making:-
Through job enrichment we can improve the decision making ability of the employee by
asking him to decide on factory layout, method and style of working.
motivation speaks of these higher order needs e.g. ego and esteemed needs, self-
actualization etc. These needs can be achieved through job enrichment.
Disadvantages of job enrichment
1. Job enrichment is based on the assumptions that workers have complete knowledge to
take decisions and they have the right attitude. In reality this might not be the case due to
which there can be problems in working.
2. Job enrichment has negative implications i.e. Along with usual work decision making
work is also given to the employees and not many may be comfortable with this.
3. Superiors may feel that power is being taken away from them and given to the junior‘s.
This might lead to ego problems.
4. This method will only work in certain situations. Some jobs already give a lot of freedom
and responsibility; this method will not work for such jobs.
Some people are internally dissatisfied with the organization. For such people no amount of
job enrichment can solve the problem
Human Resource Planning
This is the process which assures the organization that it will have adequate number of
qualified persons, at requisite times, performing in a way to satisfy the needs of the
organization & also provide satisfaction to the individual employee, so employed.
The process involves:
a) Estimating the present & future requirements of human resources based on
objectives & long range plans of the organization.
b) Calculation of net human resource requirements based on the present
availability of human resources.

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 c) Taking suitable steps to identify, mould, change & develop the strength of
existing employees so as to meet the future requirements.
d) Preparation of action plans to acquire the balance human resources from
outside the organization & to develop the existing employees.
Recruitment:
It is the process of searching for future employees (requirement) & ensuring they apply for
jobsin the organization.It involves:
a) Identification of existing sources of candidates & developing them.
b) Seeking out & identifying new sources of applicants.
c) Motivating the right type of candidates to apply for jobs in the organization.
d) Ensuring a healthy balance between internal & external sources.
Selection:
It is the process of ascertaining the qualifications, experience, skill, Knowledge, etc.
of anapplicant to ascertain his/her suitability for the job applied.
This includes:
a) Developing application blanks.
b) Creating & developing valid & reliable testing techniques.
c) Formulating interviewing techniques.
d) Checking of references.
e) Setting up for medical examination policy & procedure.
f) Line Managers to be involved in the decision making.
g) Sending letters of appointment.
h) Employing the selected candidates, when he reports for duty.
Placement:
It is a process of allotting to the selected candidate the most suitable job, as per the job
requirements & employee specifications.
This function includes:
a) Counseling the concerned managers regarding the placements.
a) Overseeing the follow-up studies, employee performance appraisal to monitor
employee adjustment to the job, in the coming days.
b) Correcting wrong/misjudged placements, if any.
Human Resource Development
This process involves improving, molding, & developing the skills, knowledge, creativity,

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attitude, aptitude, values, commitment, etc. based on the present & future job & company
requirements.
1. Performance Appraisal:
It is the continuous & systematic evaluation of individual employees with respect to their
performance & their potential for future development.
It includes:
a) Enunciating policies, procedures & techniques.
b) Assisting functional managers.
c) Reviewing & summarizing reports.
d) Evaluating the effectiveness of various programmes.
2. Training:
It is the process of transmitting the employees the technical & operating skills and
knowledge. It includes
a) Identification of training needs of the individuals & for the organization.
b) Developing appropriate training programmers.
c) Assisting & advising the management in the conduct of training programmes.
d) Transmitting requisite job skills & job knowledge to the employees. Assess the
effectiveness of the training programmes
Management Development:
It is the process of designing & conducting appropriate executive development programmes
so as to develop the managerial & human relations skills of the employees. It includes:
a) Identification of the areas in which management development is needed.
b) Conducting development programmers.
c) Motivating executives/managers.
d) Designing special development programmers/ assessment procedures for promotions.
e) Utilizing the services of specialists-both internal & external for development &/or
Institutional (external) development programmes.
Evaluating the effectiveness of executive development programmes.
Career Planning & Development:
It is the planning of one‘s career & implementation of career plans by means of education,
training, job search & acquiring of work experience. It includes:
A. Internal mobility-
Vertical, horizontal transfers, promotions and demotion.

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 B. Transfer-
Process of placing employees in the same level jobs where they can be utilized more
effectively as per the needs of the organization. This also means developing transfer
policies, offering assistance & guidance to employees under transfer orders & evaluating
transfer policy periodically.
C. Promotion-
It deals with the upward assignment of employees to occupy higher positions (with better
status & pay) in consonance with resources of employees & job requirement. The
department must ensure that:
Organizational Development:
The planned process drawn up to improve organizational effectiveness through changes in
individual & group behavior, culture & systems of the organization—drawing models from
applied behavioral science.
Compensations Management Compensation
Compensation includes all the extrinsic rewards that an employee receives during and after
the course of his sob. For his contributions to the organization. The principles of
compensation payment are that it has to be adequate, equitable and fair to the employees.
Compensation encompasses base salary, incentives, bonus and benefits and is based on job
evaluation. Job evaluation- It is a systematic determination of the value of each job in
relation to other jobs in the organization, in the industry and in the market. In other words,
job evaluation involves classifying a job based on its importance and its contribution to the
organization and its requirements.It involves
 Identifying/designing suitable job evaluation techniques;
 Evaluating various jobs;
 Ascertaining the relative worth of jobs in various categories.
Wage and salary administration - The process of formulating and operating a suitable
wage and salary program is known as wage and salary administration.It includes:
Conducting wage and salary survey in the market and in the industry; Determining wage and
salary rates on the basis of various factors like law, equity, fairness and performance; 
Implementing wage and salary administration programs;
Incentives- Incentives are the rewards an employee earns in addition to regular wages or
salary based on the performance of the individual, the team or the organization.
Bonus — Bonus is primarily a share in the surplus or bounty and is directly related to the

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organization‘s performance. In India, the payment of bonus is a very popular means of
rewarding employees and is governed by The Payment of Bonus Act 1965.
Fringe benefits — Fringe benefits are those monetary and non-monetary benefits given to
employees during their employment, and sometimes, in the post-employment period also.
These benefits are connected to employment with the organization and are not related to the
employee‘s performance.
These benefits provide a sense of security to the employee and keep them committed to the
organization. Some of the marginal benefits include;
 Disablement benefits
 Housing facilities
 Canteen facilities
 Conveyance facilities
 Educational facilities for employees and their children
 Credit facilities
 Recreational facilities
 Medical and welfare facilities
 Post-retirement benefits
 Company stores
 Legal aid
1.8 Compensations and Benefits:
Bank provide compensations to its employees in shape of Cost of any medical Treatment,
Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and some other.
Employees can claim their compensation if any above case occurs. Benefits which are
provided by Company are Paid time off, Retirement, Disability Insurance, Education and
training programs
In Paid time off benefits the employee is paid for the time he don‘t worked duo to vacation,
holiday pay and sick pay. Retirement benefits are in shape of pension, gratuity, provident
fund and superannuation fund. In disability insurance bank provides financial support when
an employee becomes injured or ill and is unable to do his/her job and in education &
training programs bank provide different education & training to their employees to furbish
their skill.Administering various human resources policies like employment development &
compensation & interactions among the employees on one hand & employees & the
management on the other, create a sense of working relationships between workers &

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management & trade unions.Basically they are all interactions between human beings.
Human relations, is therefore, is an important area in management which integrates people
into work situations in a way that motivates people to work together with economic,
psychological & social satisfaction thereby increasing their productivity. Hence Human
Resources Management functions will center on:
1. Understanding perception, personality, learning, intra & inter personal
relations, inter & intra group relations.
2. Motivating all employees.
3. Promoting employee morale.
4. Developing communication skills.
5. Developing leadership skills.
6. Redressing satisfactorily through a well-defined grievance procedure.
7. Handling disciplinary cases by established disciplinary procedures & in all
fairness.
8. Providing adequate counseling to solve employees‘ personal, work & family
problems, thereby releasing their stress & strain.

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1.9 HUMAN RESOURCE MANAGEMENT IN COMPANY
The classification of the Indian Company into broad groups such as public sector, old
private sector, new private sector, foreign, regional rural Company & cooperatives are
largely on the basis of ownership pattern. It is also well known that the business mix,
delivery channels & IT strategies of these organizations vary substantially. What is little
known but of greater importance is that each of these Company follows very distinct HR
practices which have contributed, substantially, to the business processes.
Responsibilities of the Human Resource Management Department in Company Role:
The role of the Human Resource Department is to create the climate & conditions in which
management throughout the Bank will be enabled to optimise the individual & collective
contribution of all employees to the short & long-term success of the Bank.
Responsibilities:
 To be the principal sponsor & ―guardian‖ of HR policies in the Bank.
 To propose & obtain agreement on changes to these policies from time to time & to
ensure that policies which have been agreed are being implemented throughout the
Bank.
 To contribute fully to the task of meeting the business challenges which the bank has
to face by supporting Branch/Unit Managers in continuously developing the potential
of employees & in creating conditions in which all the employees are motivated to
meet the objectives of the Bank.
 To continuously monitor the Bank‘s strategies to ensure that HR policies are
appropriate that employee numbers & skills are fully supportive of such strategies.

 To deliver a full range of personnel services in support of line management. These

services include manpower planning, recruitment/transfer, remuneration, and training
employee welfare. To support line management in their day-to-day management of
the workforce by providing advice & consultancy on personnel & performance
management issues.
1.10 CURRENT CHALLENGES FACED BY COMPANY IN HRM Effective work
force:
A time-consuming & hectic job is to hunt the right talent. Higher the professional value of
the vacancy, tougher is the search. Identifying the right stuff followed by negotiation is the
element which makes the job tough for the employer. Company are keenly interested to fill

18
up two types of breeds of professionals. Ones who are outstanding professionals with high
job hopping attitude—these are those who come in-work for some tome & then leave for
better prospects. Others are those who are keenly picked-up, trained & are somehow
retained to be developed as future management within the bank. Management trainees are a
growing popular phenomenon where freshly qualified business graduates are engaged by
Company & a certain percentage of these well-equipped professionals stay back within the
organization to grow into the footsteps of senior managers. Banking jobs being apparently
lucrative for many attract a large number of candidates against advertised vacancies in media
creating a large database management problem. This has been facilitated by specialized
hiring agencies who may take up the job of hiring in case of large number of vacancies.
Right People:
The most difficult agenda of HRM across the banking sector is to retain the right people.
Sudden growth of retail banking & other services has put pressure on HR Managers in
Company to engage more professionals within shorter span of time thereby attracting
manpower in other Company on attractive packages has made the job market very
competing. A bank in a normal course invests time & money to hire & train the appropriate
workforce for its own operations. This readymade force is often identified & subsequently
picked-up on better terms by others.
Compensation:
How much to pay the right employee & how much to the outstanding performer. Company
have traditionally followed pay scales with predetermined increments, salary slabs, bonuses
& time based fringe benefits like car & house advance, gratuity, pensions, etc. The situation
is not the same anymore. An increment of Rs.500-800 per annum is no more a source of
attraction for a professional anymore. A basic pay with traditional formulas of linkage with
medical & other facilities has no soothing today. A promise of future growth, learning
culture & corporate loyalty is out of dictionary & does not mean anything to this energetic &
competent performer today. A waiting period of 3-4 years in each cadre haunts the
incumbents who strongly believe in immediate compensation. A freshly hired professional
requires a brand new car or car loan n resuming office quite contrary to his previous breed of
bankers who would wait for the job seniority to qualify for a car loan.
Job Satisfaction:
Everybody in the bank wants to work in the preferential department, preferential location,
city of his own choice & boss of his liking. An administrative deviation from any of these

19
results in lowered job satisfaction. Although hiring is normally based on regional
requirement matching the area of activity with that of employee‘s nativity yet other elements
like appointment in the department of choice & preference makes the job of HR manager
quite challenging.
What the HR manager cannot afford is the dissatisfied employee who not only disrupts the
smooth working him, but also spreads the negativity to others by his de-motivated attitude.
1.11 TRAINING & DEVELOPMENT

Training:
Organization & individual should develop & progress simultaneously for their survival &
attainment of mutual goals. So every modern management has to develop the organization
through human resource development. Employee training is the important sub system of
human resource management. Employee training is a specialized function & is one of the
fundamental operative functions for human resources management.
After an employee is selected, placed & introduced he or she must be provided with training
facilities. Training is the act of increasing the knowledge & skill of an employee for ding a
particular job. Dale S. Beach defines the training as ―the organized procedure by which
people learn knowledge & skill for a definite purpose.‖ The training system in the banking
industry has a strong structural base. However, in the past the training activities have been
more ritualistic due to absence of a strategic link between training & human resources
development. Today, it is important that the training function is made an effective
organizational intervention by establishing a clear policy of training & development within
the framework of total human resource development. The training establishments need to be
actively involved in the total training process starting from the identification of the training
needs, evaluation of training effectiveness & the benefits of training to the end users viz. the
internal & external customers. The need for training & development is determined by the
employee‘s performance deficiency, computed as follows:
We can make a distinction among training, education & development. Training, as was
started earlier, refers to the process of imparting specific skills. Education, on the other hand,
is confined to theoretical learning in the classrooms. Training & Education Differentiated:

20
 TRAINING EDUCATION

Application oriented Theoretical oriented

Job experience Classroom learning

Specific tasks General concepts

Narrow perspective Broad perspective

Development:
Give a man a fish, & you give him meal. Teach man to fish, & you give him a livelihood.
This ancient Chinese proverb seems to describe the underlying rational of all raining &
development programs. No banking organization can long ignore the training &
development needs of its employees without seriously inhabiting the performance. Even the
most careful selection does not eliminate the needs for training, since people are not molded
to specifications & rarely meet the demands of their jobs adequately.
This HRM function deals with the overall development of the employees. This includes their
professional & well as their personal development. It is a part of HRM function to identify
opportunities for enhancing the skills of the resources. Promotion is regarded as one of the
ways of recognizing development undertaken by an employee. Development is also largely
dependent on training. Generally people think that training & development are one & the
same, but there are many differences between them.
RECRUITMENTs
The human resources are the most important assets of an organization. The success or failure
of an organization is largely dependent on the caliber of the people working therein. Without
positive and creative contributions from people, organizations cannot progress and prosper.
In order to achieve the goals or the activities of an organization, therefore, they need to
recruit people with requisite skills, qualifications and experience. While doing so, they have
to keep the present as well as future requirements of the organization in mind. Once the
required number and kind of human resources are determined, the management has to find
places where the required human resources are/will be available and also find means of
attracting them towards the organization before selecting suitable candidates for jobs.

21
Recruitment is defined as, ― A process to discover the sources of man power to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
man power in adequate numbers to facilitate effective selection of an efficient work force.
Process of Recruitment:
Recruitment refers the process of identifying and attracting job seekers so as to build a pool
of qualified applicants. This process comprises of five interrelated stages, viz,
 Planning
 Strategy development
 Searching
 Evaluation and control
The ideal recruitment process is the one which attracts relatively larger number of qualified
applicants who will survive the screening process and accept positions with the organization,
when offered to approach the ideal people, individuals responsible for recruitment process
must know how many types of employees are needed, where and how to look for individuals
with appropriate qualifications and interests, what inducements to use for various types of
applicants group, how to distinguish applicants who are unqualified from those who have a
reasonable chance of success, and how to evaluate their work.
SELECTION
Selection is defined as the process of differentiating applicants in order to identify and hire
those with a greater likelihood of success in a job. The objective of selection decision is
basically picking an applicant from a pool of applicants who has the appropriate
qualifications and competency to do the job. The selection procedure cannot be effective
until and unless-
 Requirements of the job to be filled have been clearly specified.
 Employee specifications (physical, mental, social, behavioral etc) have been clearly
specified.
 Candidates for screening have been attracted.
Selection process is preferable because:
 It is easier for applicant as they can send their applications to a single centralized
department/agency. It facilitates contacts with applicants because issues pertaining to
employment can be cleared through one central location
 It helps operating managers to concentrate on their operating responsibilities. This is
helpful during peak operating period.

22
  It can provide for better selection because hiring is done by specialist trained in
staffing techniques.
 The applicant is better assured of consideration for a greater variety of jobs.
 Hiring cost may be cut because duplication of efforts is minimized.
Selection Process:
The selection process consists of the following steps:
1. Application form: Many companies formulate their own style of application form
depending upon the size and nature of business carried on, type and level of the job etc.
Information is generally required on the following items in the form: personal background,
educational attainments, work experience references etc.
2. Written test : Written test is conducted for the qualified candidates after they are
screened on the basis of application form to measure the candidates ability towards the job,
his aptitude reasoning, knowledge in various disciplines, English language etc.
3. Preliminary Interview: The next step that tag along the selection procedure is a
preliminary interview wherein the applications are scrutinized so as to eliminate unqualified
applications. Preliminary Interviews are short. This interview thus provides information
about the candidate related to the job or personal specifications.
4. Selection Test: After passing through the interview the next stage that applicant has to
prove himself on are the selection tests. There are different types of selection tests for
different levels of the organization and that too is further differentiated within different types
of organizations. Some of the most common and well-known tests that an applicant has to go
through are;
Aptitude test
b) Personality tests: This is common mostly for the higher levels of management are
given to measure a prospective employee‘s motivation to function in a particular
working environment.
c) Internal test: To measure an individual‘s activity preferences.
d) Graphology Test: is an art wherein the individual‘s handwriting is seen and
accordingly his personality traits are derived by the way he writes.
e) Polygraph Test: Are designed to ensure accuracy of the information given in the
applications.
f) Medical Tests: Reveal physical fitness of the candidate.
g) Drug test: Help to ensure the presence of illegal or Performance- affecting drugs.

23
1. References and background checks: Many employer request names, address, and
telephone numbers or references for the purpose of verifying information and, perhaps,
gaining additional background information on an applicant.
2. Selection Decision: After collecting data from all the preceding steps, this is the most
crucial step in the entire selection process. The main difference between the preceding stages
and this is that former is used to short list the number of candidates and later one is to make
a final decision from the pool of individuals who pass the tests, interviews and reference
checks. The view of line manager will be generally considered in the final selection because
it is he/she who is responsible for the performance of the new employee. The HR manager
plays a crucial role in the final decision.
3. Physical Examination: After the selection decision and before the job offer is made, the
candidate is required to undergo a physical fitness test. The result of the medical fitness test
is recorded in a statement and is preserved in the personal records. The main objectives of
this test are as follows: by invitation.
1.12 Company profile
Introduction:

Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the

largest mobile telecommunications network company in the world by turnover and has a
market value of about £75 billion (August 2008). Vodafone currently has operations in 25
countries and partner networks in a further 42 countries.

The name Vodafone comes from Voice data fone, chosen by the company to "reflect the
provision of voice and data services over mobile phones."

It is the second largest mobile telecom group in the world behind China Mobile. In the
United States, Vodafone owns 45% of Verizon Wireless.

Mission:
Vodafone is primarily a user of technology rather than a developer of it, and this fact is
reflected in the emphasis of our work program on enabling new applications of mobile
communications, using new technology for new services, research for improving operational
efficiency and quality of our networks, and providing technology vision and leadership that
can contribute directly to business decisions.
Vision:

24
Our Vision is to be the world’s mobile communication leader – enriching customers’ lives,
helping individuals, businesses and Communities be more connected in a mobile world.
History:
VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21
telecom circles in India. Despite the official name being Vodafone Essar, its products are
simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage
throughout India and is especially strong in the major metros.

Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 22 of the country's 23 licence areas.
Ownership:

Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals,
15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by
Li KaShing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the remaining
33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8,
2007.

Previous brands:

In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its
services under a single identity. The Company entered into agreement with NTT DoCoMo
to launch i-mode mobile Internet service in India during 2007. The company used to be
named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the
brand was marketed as Hutch. After getting the necessary government approvals with
regards to the acquisition of a majority by the Vodafone Group, the company was rebranded
as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20
September 2007.On September 20, 2007 Hutch becomes Vodafone in one of the biggest
brand transition exercises in recent times. Vodafone Essar is spending somewhere in the
region of Rs 250 crores on this high-profile transition being unveiled today. Along with the
transition, cheap cell phones have been launched in the Indian market under the Vodafone
brand. There are plans to launch co-branded handsets sourced from global vendors as well.

25
A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage
Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-
world into India."

While there is no revealing the prices of the low-cost Vodafone handsets, the industry is
abuzz that prices might start at Rs 666, undercutting Reliance Communications' much-hyped
'Rang Barse' with cheap handsets beginning at Rs 777. Meanwhile, Vodafone Essar sources
said there would be no discounts or subsidized handset offers -- rather handset-bundled
schemes for customers.
Customer Satisfaction
Introduction:
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four perspectives of a Balanced Scorecard. In a
competitive marketplace where businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of business strategy.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Purpose:
"Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty. “Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:" Within organizations, the collection,
analysis and dissemination of these data send a message about the importance of tending to
customers and ensuring that they have a positive experience with the company’s goods and
services.
Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while targeting

non-customers; measuring customer satisfaction provides an indication of how successful
the organization is at providing products and/or services to the marketplace. Customer
satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state
of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of

26
satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization's products.

Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently
been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality
Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known
as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value,
Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front
line Service Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and are
most often utilized to develop the architecture for satisfaction measurement as an integrated
model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides
the basis for the measurement of customer satisfaction with a service by using the gap
between the customer's expectation of performance and their perceived experience of
performance. The usual measures of customer satisfaction involve a survey with a set of
statements using a Likert Technique or scale. The customer is asked to evaluate each
statement and in term of their perception and expectation of performance of the organization
being measured.
Vodafone had highest customer satisfaction index in 2007
Lisbon, 25 August 2008 - Vodafone obtained the highest customer satisfaction index in the
telecommunications sector in 2007, according to annual results published by Anacom.
Vodafone achieved a satisfaction index of 74.4 (on a scale of 0 to 100), the highest score of
all the companies in the Portuguese telecommunications market and considerably above the
sector average of 67.6.
In the report published by Anacom, Vodafone is ranked in first place in all the indicators
included in the survey: Satisfaction with the operator, Image that customers have of the
operator, Customer Expectations, Perceived Quality of the operator's network and services,
Perceived Value for Money, Complaints received and their handling, and Loyalty of
customers to their operator.
In the Perceived Quality indicator, Vodafone obtained a score of 8.3 points for overall
quality, way ahead of the scores of the other two operators (both obtained 7.7 points).
Vodafone comes top in all the indicators for perceived quality of network and services:
technical quality of the network (8.2 points); customer service and advice capability (7.6

27
points); quality (8.2 points), diversity (8.0 points) and reliability (7.9 points) of products and
services offered; clarity and transparency of information supplied (7.8 points); network
coverage (7.9 points) and clarity and transparency of price plans (7.9 points).
Similarly, in the indicators measuring the Image of mobile operators, Vodafone comes top in
the five categories analyzed (on a scale of 1 to 10): 'It is a reliable company in terms of what
it says and what it does' (8.1 points); 'It is stable and well established in the market' (8.8
points); 'It contributes positively to society' (7.5 points); 'It cares about its customers' (7.6
points); and 'It is innovative and forward looking' (8.5 points). The methodology used in the
ECSI Portugal 2007 survey (ECSI – European Customer Satisfaction Index) is similar to
that used by the European Commission to survey customer satisfaction in 25 Member States,
enabling comparisons to be made between the results obtained in each country.
SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective. The technique
is credited to Albert Humphrey, who led a research project at Stanford University in the
1960s and 1970s using data from Fortune 500 companies.
Strengths Weaknesses

Leadership Position Centralized Control – Low Flexibility

Global Brand Strength High Consumer churn rates
Internal High Geographical reach

Opportunities Threats

Expanding marketing boundaries Increased Competition

Growth through 3G Market saturation in Europe
External Strategic Alliances Emergencies of Low cost Brands

SWOT analysis of Vodafone

Strengths:

28
The main strength of Vodafone within the telecommunications market lies in its brand
image and recognition. Vodafone, having established a global presence and having invested
highly in marketing a differentiated image by promoting a Vodafone life style, currently
enjoys a differentiating advantage that, if exploited properly, can offer a lead in
competition. The presence of Vodafone in numerous countries within Europe as well as in
allpart of the world enhances this image. It allows customers to travel and enjoy easily the
services of their home country operator. In the few countries that Vodafone is not physically
present (e.g. Norway) it has well established strategic alliances which allow for a better
service of mobile clients.
Weaknesses:
The expansion of Vodafone has been completed at the expense of direct control of its
operations. The company grew through a process of acquisitions of national
telecommunications companies (e.g. the acquisition of the third biggest Czech mobile phone
operator, Cesky mobile) rather than organic growth. This increased its subscribers’ base
quickly, offering direct market knowledge and immediate additions of customer bases at the
expense of direct effective control of the subsidiaries. At the same time though, it implicitly
imposed a centralized operational structure for the group, nominating the UK headquarters
as the leading business unit running a much centralised marketing and handset procurement
at group level. This has resulted in the neglect of local markets and local differences,
allowing market share to be gained by smaller local competitors. Due to the highlysaturated
Western European market this has resulted in an increase in the price elasticity of demand,
with consumers becoming continuously price oriented. This has resulted in high customer
churn rates reaching the level of 32.8% in the UK compared to O2’s 24%.
Opportunities:
The telecommunications market, even though highly saturated in some regions offers great
potential due to the ageing population and the sophistication of the consumers. It offers great
opportunities through a careful market segmentation and exploitation of particular profitable
segments. Different strategies should be pursued – simple phones and simplified pricing
plans to the ageing population and more updated, sophisticated solutions for younger
generations. The expandingBoundaries of the market could provide further opportunities by
allowing Vodafone to enter more aggressively into fixed‐line service and to better enjoy the
benefits of its high investment in 3G technology. Moreover the company has undertaken its
first steps in establishing strategic alliances to develop customized solutions for end‐users:

29
Vodafone recently announced two new partnerships, one with supermarket group ASDA to
launch anASDA branded mobile service in the UK, and another with electrical retailer DSG
International to provide mobile solutions to small businesses. This could further be enhanced
to avoid being a late‐entrant in this new method of distribution which offers access to a wide
potential customer base.
Threats:
The European part of Vodafone’s market is characterized by existing high levels of
competition. Major brands such as O2 and T‐Mobile are exploiting the price sensitivity of
customers and in this way they are building a stronger image and presence in the market.
Indirect competition is also increasing further, through the presence of Skype and other
related (not only voice) Internet‐based services. This combined with the upcoming European
legislative measures is expected to limit further the tariffs for the network providers
imposing further need for price cuts which could harm the bottom line profitability of the
company.
PRODUCT PROFILE
Introduction to Vodafone products & services
Vodafone Group Plc is the world's leading mobile telecommunications company, with a
significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States
through the Company's subsidiary undertakings, joint ventures, associated undertakings and
investments.The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In
the United States the Group's associated undertaking operates as Verizon Wireless. During
the last two financial years, the Group has also entered into arrangements with network
operators in countries where the Group does not hold an equity stake. Under the terms of
these Partner Network Agreements, the Group and its partner networks co-operate in the
development and marketing of global services under dual brand logos.
At 30 June 2009, based on the registered customers of mobile telecommunications ventures
in which it had ownership interests at that date, the Group had 315 million customers,
excluding paging customers, calculated on a proportionate basis in accordance with the
Company's percentage interest in these ventures. The Company's ordinary shares are listed
on the London Stock Exchange and the Company's American Depositary Shares ('ADSs')
are listed on the New York Stock Exchange. The Company had a total market capitalization
of approximately £66.9 billion at 18 May 2009. Vodafone Group Plc is a public limited

30
company incorporated in England under registered number 1833679. Its registered office is
Vodafone House, The Connection, Newbury, and Berkshire, RG14 2FN, England.
Product review

“Mobile is always at the heart of what the company do, but now they are moving into
integrated mobile and PC communication services” – Vodafone EssarThey are doing that in
two ways – wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but
also using fixed line broadband services like DSL (Digital Subscriber Line). Their customers
benefit from a complete Vodafone experience in and out of their homes and offices. They
are notified about email with their consumer push email service, access existing instant
messaging services on the move, and share images and video captured on their handsets.
They offer a suite of products that, starting with voice calls, offers their customers an
alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and
Vodafone Casa in Italy, provide their customers with an easy-to-use mobile service,
combined with low-cost fixed line telephony and DSL (Digital Subscriber Line) broadband.
They have extended their reach into the office by delivering richer business applications and
integrated fixed and mobile services, such as higher speed internet access.
With developments in technology they can provide integrated mobile and PC offerings to
give their customers a consistent experience whether they are at home or on the move.
Technology
They enrich their customers’ lives by enabling them to communicate in an increasingly
connected world. They provide a range of voice and data mobile telecommunications
services, including text messages (SMS); picture messages (MMS) and other data services.
They are continually developing and enhancing service offerings particularly through third
generation (3G) mobile technology, which is being deployed in the majority of their
operations.
Their mobile services are offered over the GSM network on which a General Packet Radio
Service (GPRS) is also provided. The move to higher performance 3G (W-CDMA)
networks is they’ll underway in the bulk of their operations, and they are now in the process
of upgrading these networks to 3G broadband (HSDPA) with the promise of even higher
data rates.Mobile is always at the heart of what they do, but now they are moving into
integrated mobile and PC communication services, by combining fixed-line Digital
Subscriber Line (DSL) broadband offers with their core mobile services.

31
Mobile evolution
Their mobile communications technology has advanced rapidly since Vodafone launched
the first national UK network on 1 January 1985. With this first generation (1G) technology
most mobile phones they’re installed in cars, pothered by the car battery and used roof-
mounted antennas to improve reception of the analogue signal. The analogue services set up
in countries across Europe during the late 1980s they’re often not compatible, with
subscribers unable to use the same mobile phone moving from one country to the next.
To solve this and other problems a new standard known as the Global System for Mobile
Communications (GSM) was developed. This standard used digital technology, converting
speech into binary code. Since Vodafone launched the first digital network in 1991, GSM
has become the main standard for mobile communications worldwide.Second generation
(2G) digital technology added the ability to transmit data along with voice over mobile
networks and was the origin of internet access on the move. Wireless Application Protocol
(WAP), a standard for internet-based services accessible on small mobile phone screens,
provided early information services like news, movie start times and even the live Vodafone
share price. Data transmission rates edged upwards with the introduction of General Packet
Radio Service (GPRS), which enabled internet and email access and had the additional
benefit of an always-on internet connection on handsets.
GPRS was the stepping stone to today’s third generation (3G) technology. 3G data rates (at a
peak rate of 384 Kbps) are about seven times faster than a fixed line dial-up connection. As
they are offering high-speed internet and email access, 3G enables video calling, full track
music downloads, mobile TV and more.
The latest leap in data transmission speeds comes via High-Speed Downlink Packet Access
(HSDPA), offering similar speeds to current Digital Subscriber Line (DSL) broadband
Services
1. Voice
2. Data
3. Devices
4. Fixed and other services
Voice
Voice services are the largest part of their business. They offer their customers a wide range
of innovative tariffs and services for use at home, in the office and while travelling.
Vodafone Office

32
Quick stats:
3 million customers
Zonal tariffs available in some Indian markets closed user tariff available
Vodafone Office is the umbrella name for a series of products and services designed to meet
all their business customers’ communications needs.
With Vodafone Wireless Office, companies can transfer voice minutes from a fixed line to
the mobile network, reducing the need for fixed desk phones. Existing fixed line and
extension numbers can be assigned so that all calls are easily transferred to their mobile. A
closed user group tariff is available allowing employees to call each other for a flat monthly
fee. In Germany, Spain, Greece, Italy and Portugal, location based zonal tariffs allow
preferential rates when calling from the office. Geographic numbers enable increased fixed
to mobile substitution, allowing you the freedom to use a single mobile phone in and out of
the office.

Vodafone live! – Internet on Their Mobile Top Management

Designation Name
CMD Shri R. K. Upadhyay
Director (Finance)
Director (HR) Shri A. K. Garg
Director (Consumer Fixed Access) Shri Rajesh Wadhwa
Director (Consumer Mobility & Enterprise) Shri R. K. Aggarwal
Company Secretary & Sr. GM (Legal) Shri H. C. Pant

Board of Directors
The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time
Directors; 2 Government Nominee Directors and 4 Non-official Part Time Directors. Thus,
the Board has the optimum mix of 50% Whole-time and 50% part-time Directors. The
composition is as per Corporate Governance Norms for the unlisted CPSEs, laid down by
the Department of Public Enterprises.
1. Shri R. K. Upadhyay
2. Shri Rajesh Wadhwa
3. Shri R. K. Aggarwal

33
4. Shri A. K. Garg
5. Shri S. R. Rao
6. Shri Sanjiv Gupta
7. Shri Ashish Guha
With a corporate philosophy that considers Human Resource as the most prized assets of the
organization, it's natural for VODAFONE to continually hone employee skills, enhance their
knowledge and their expertise and their aspirations to fruition. Even as VODAFONE goes
about conducting its business activities, it lays emphasis on constant enhancement of
knowledge and skills through regular training programs.

 VODAFONE has a vast reservoir of highly skilled and experienced work force of
about 3, 37,000 personnel.
 They believe that their staffs, one of the best trained manpower in the telecom sector,
are their biggest asset.
 They believe that their future depends on staff who provide services to valued
customers and stay in touch with them.
 To apex training centers of VODAFONE i.e. Advance level Telecom Training
Center (ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center
at Jabalpur are comparable to any world class Telecom Training Center. Moreover,
43 zonal training centers and a National Academy of Telecom Finance and
Management have been running for several years now.
 Different curriculum run in these centers to impart technology based training,
training for attitudinal change, basic educational and skill development program etc
Incentives to the Employees
There has been a continuous implementation of the employee benefits for the better
performance of the employees. Apart from the basic salary, VODAFONE provides various
incentives to its employees. VODAFONE gives many incentives to its employees: Some of
them are:-
1. Daily Allowance
2. Travel Allowance
3. Diet Allowance
4. House Rent Allowance
5. Medical Facilities

34
 6. Leave Travel Concession
The employees can avail medical facilities in CGHS dispensaries of the central government.
Also for the convenience of the employees VODAFONE has taken a policy of reimbursing
the medical bills of the employees if they opt out from CGHS. L.T.C is given to all the
VODAFONE employees once in a year, when they can travel anywhere in the entire India
and reimburse their onward and return journey fairs. Also in addition to this, VODAFONE
provides free travel for the employees to their home-towns, once in two years.

Training for Employees

Human Resource Development is a continuous process. As the biggest Public Sector
Undertaking in India, VODAFONE has realized the importance in HRD, for continuous
learning and development of its employees, resulting in the successful development of the
company. With the continuous changes in technology, the employees need to be well
informed about the changes, for the better functioning. The following training programs are
given to the employees, depending upon their requirement.
 Introductory
 Skill Development
 Information Technology Methods
 Managerial Skill Development
 Stress Management

VODAFONE has training centers, spread all over the country, for the continuous learning of
their employees. To meet the technological challenges, up gradation, modernization and
computerization, these training centers have an excellent infrastructure.
Some of the infrastructure facilities are-
Lecture Rooms
The lecture rooms are very advanced with all the modern equipments available to provide
the employees, the best of the learning.
Audio and Visual facilities
Audio and Visual facilities are also available in the centers for the effective communication
of the subject matter to the employees.
Libraries

35
Libraries are available in each and every training center of VODAFONE, which have the
books of the latest editions to update the knowledge of the employees.
Hostels
Excellent hostel facilities are available at the training centers to provide the employees
comfort, during the training program.
VODAFONE Employees Union – Karnataka Circle
Department of Telecom Services (DTS) and Department of Telecom Operations (DTO)
were corporatized on 1st October 2000 with the name Bharat Sanchar Nigam Limited
(VODAFONE). The changeover could be made six months earlier than the proposed date of
1-4-2001, due to the whole hearted support given by NFTE and other Federations. The
change from government Department to corporation had its own problems for the unions.
While in the Department, Cadre unions were recognised; in corporation, industry wise union
alone is allowed. It became necessary to form an industry wise union including all cadres of
employees. The issue was thoroughly discussed by the National Action Committee and it
was decided to form a new industrial union. A Telecom convention as well as a Joint Central
Working Committee of All India Unions was decided to be held at Visakhapatnam. The
Joint Conference held on 21st –22nd March, under a presidium consisting of the Presidents
of all the unions being merged, unanimously adopted the Resolution forming VODAFONE
Employees Union and the Constitution of the union with thunderous applause.
MARKETING DEPARTMENT
The marketing department must act as a guide and lead the company's other departments in
developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of
the market and customer needs, but should not act independently of product development or
customer service. Marketing should be involved, and there should be a meeting of the
minds, whenever discussions are held regarding new product development or any customer-
related function of the company. The Objective of the Marketing Department is to promote
services and improve market share by:
a. Implementing Offers:
There has been a rise in the competitors in each and every field of telecommunications. In
the Internet, even local players are giving the service at a cheaper rate. To withstand the
competition, there have to be some customer friendly offers, so that the customers are
attracted. Hence, the delivery of the service should not only be of a good quality, but also at

36
a cheaper rate. The expectations of different customers of different groups, like students,
executives, business people, etc., are different. Hence the target group should be divided
among the various services, so that all the customers’ needs are catered. Hence
VODAFONE has been conscious of dividing the services, so that, they can be used by all
the parts of the society.
b. Advertising:
Various offers, without proper awareness among the target group are in vain. Hence
VODAFONE has laid a great emphasis on the advertisements.
The main sources of advertisements are:
Hoardings:
Hoardings are placed in various towns, cities, villages, highways and public places like bus
stands and railway stations to attract the customers’ attention.
Electronic Media:
Electronic media mainly consists of televisions and radios. Hence there has been a rapid
increase in advertising through these channels.
Print Media:
Print media mainly consists of newspapers and magazines. An elaborate process of
advertising has been laid through this channel.
SMS to customers:
The existing customers are made aware of the new offers by the process of messaging, both
to their mobiles and also the landlines. In this way, the customer can be directly informed
about the new services.
Call to customers:
The existing customers are made aware of the new offers by the process of calling, both
to their mobiles and also the landlines. In this way, the customer can be directly
informed about the new services.
c. Customer Care:
As said earlier, customer relationships play a great role in the prosperity of a company. The
customers Views and feedback play a very important role in the development of successful
products. Hence, there should be a rapid interaction with the customers in order to produce
innovative products to serve them better. VODAFONE has made rapid strides in developing
the customer relationships. Several steps have been taken to augment the customer care to
the international standards. Some of the steps taken to achieve this are:

37
Customer Service Centers:
All VODAFONE Customer Service Centers (CSCs) now remain open on all seven days
from 8.00 AM to 8.00 PM without any break for all activities. Cheque deposit machines
have also been installed in many cities, so that customers can make payments 24X7 at their
convenience.Customers can also make payments by cheque/Demand Draft to VODAFONE
franchisees all over the country.
Call Centers:
Round the clock service has been given to the customers through the service. To make the
service simplified, different numbers have been allotted to different services, for providing
individualized attention for the service users. These services are toll-free and can be used
from any part of the country. The following are some of the services provided by
VODAFONE, taking in view, the customer care:With a view to simplify and offer customer
friendly services, more than one BFone Connections can be applied on a single application
form. Accordingly, a single demand note would be issued to the customer in respect of all
the connections applied for:
 Shifting charges for local as well as all India shifting of fixed telephone (BFone)
has been abolished.
 Mobile (service connections) being given to outdoor staff in a phased manner for
speedy rectification of faults.
 Majority of the local network is built up on jelly filled and OFC for trouble free
service.
 Internal Distribution Points (DPs) being provided in the customer premises to
eliminate the faults arising out of overhead wires.
 Remote Line Units (RLUs) and Remote subscriber Units (RSUs) being provided
extensively to reduce the long lengths of copper cables.
 Countrywide Network Management & Surveillance System (NMSS) to ensure
uninterrupted and efficient flow of telecom traffic.
 Application Forms for new connections have been made free of charge for all
services.
 Procedure for restoration of telephones disconnected due to non-payment
simplified and powers delegated to Secondary Switching Area (SSA) heads.
 Payment of telephone bills being received on Saturday and Sunday through
cheques in City Telecom Offices (CTOs).

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PRODUCTION AND OPERATIONS DEPARTMENT
VODAFONE being a service provider, there is no such production department in any of its
administrative units or circles, except for the four telecom factories located at Mumbai,
Jabalpur, Kolkata, Richchai. These factories are responsible for the production of towers,
Line Stores, LJUs, etc for the smooth functioning of VODAFONE.Being a service provider,
VODAFONE has a robust operations and service department, whose main aim is to satisfy
the customer needs and address his complaints, if any, thus achieving high level of customer
satisfaction. VODAFONE has a vast no. of services (as shown in Annexure – I) for its
customer. The operations process at the DE Office, Dharwad is based on the word called
“C.O.M.I.T.” Basically, this office is primarily focused on getting the new connections for
Basic Telephony and Broad Band, supported by the Mobile Telephony. The word “C.O.M.
I.T.” refers to:
C – Commercial Section
O – Outdoor Section
M – MDF (Main Distribution Frame)
I – Indoor Section
T – Test Desk
Any new land line/broad band connection starts with the customer filling the application
form and submitting it in the commercial section of the office. Then, the application is fed
into a integrated system known as “CDR”, which in turn serves as an input to the outdoor
section. The outdoor sections, on getting the work order, physically check for the feasibility
of the connection to be made. Once this is done, the outdoor team updates accordingly in the
CDR system, thus generating a work order for the MDF Section.The MDF or Main
Distribution Frame is the distinguishing or segregating point between the outdoor and the
indoor section. Outdoor is Hardware, where as Indoor is like a software. The linking is done
in the MDF section for the connection by generating a unique number known as “Network
Equipment Number (NE)”. This is again submitted by the MDF team in CDR system.
Using this NE, the indoor team creates a connection in the switch using a terminal (PC) and
submits. Then the connection is tested in the section called Test Desk for validation.The
same thing applies to the Mobile Telephony, with a few differences. There is no physical
work in case of mobile. Every step as discussed in previous section is made logical i.e.
through the use of software.

39
Apart from the services, this office being a telephone exchange has some of the equipments
like the OCB exchange, MSC, BSC, BTS, Switches, Battery, Power Plant, and Generator.
The office has a proper layout for each of the above mentioned equipments and is
maintaining the same properly. Every device or equipment available is having a stand-by, so
that in case of break-downs there is no interruption of service to its customer. It has a
specific officer-in-charge, SDE assisted by JTOs, TTAs and Mechanics.
FINANCE DEPARTMENT
In this modern era of making money, finance is one of the basic foundations for all kinds of
economic activities. It has been rightly said that business needs money to make more money.
This spinning of money out of money is entrusted with the Finance department. In
VODAFONE to work more effectively the finance department is divided into 7 sections
which look after entire unit are as follows:
 Establishment Section
 Bills Payable Section
 Bills Receivable Section
 Books Sections
 Costing and materials Accounts Section
 Cash Section
 Provident Fund Section
 Central excise

Establishment Section
 This department is concerned with wages, salaries, medical reimbursement,
conveyance reimbursement, tour advance settlement, and air fare settlement,
payment of medical expenses of retired employees, provident fund and gratuity.
 It is also concerned with recording and maintenance of attendance, leave taken and
over time work by each and every employee. Here the department records time in
and out of employee through the medium of automatic time recorders provided at the
vantage points within the factory.
 This is purely a financial document required for the purpose of calculating the wages
of artisans and other workers. Salary of an employee is paid through banks.
Bills Payables Section

40
This section is concerned with the payment of all revenue bills. A revenue bill includes
payment made to suppliers, payment to government agencies like KPTCL, RTO TAXES,
etc. In case of purchasing the materials, the actual process starts once the order is placed and
the material is received by stores and it is sent to quality section. Where in inspection
department will certify and then clear the stores receipt vouchers. The cleared stores receipt
will then come to material management who will value it. After this it is forwarded to bills
payable section. They will release the payment. Before payment was made was only through
cheques now they use even E-payment for settlement of bills.
The various means by which the vendors are paid are as follows:
 GRN(Goods Receipt Note)
 ECS(Electronic Clearing Service)
 EFT(Electronic Fund Transfer)
 RTGS(Real Time Gross Settlement)
Bills Receivable Section
The main function of this section is mainly:
 Maintenance of customer accounts.
 Follow up of after sales procedure.
The payment/amount which has to be received by the customer is checked by this section.
After the sales is done that is after the dispatch of products is over which is done by
commercial department, the sales department follow the invoice raised by commercial
department and collects the amount from the customers. Each customer is identified with a
unique customer code. This code is common to all the branches of VODAFONE and is
identified by corporate office.
With reference to the invoice raised by the commercial department this section raises the
bill. It is also concerned with speedy recovery of period barred debtors as early as possible.
This section has to maintain a debtor’s ledger that will periodically be reviewed in terms of
recoveries, whether customer is paying regularly or not, whether there is any outstanding,
and reasons for that. Usually are 45 days credit period is allowed&10% advance. Provision
for bad debts and provision for liquidated damages are maintained.
Book Section
This section is maintenance of general ledger and coordination with other sections. It is also
entrusted with passing journal entries, transfer entries passed by the various sections of
finance, and to ensure that proper code are used while passing the entries. Because

41
VODAFONE follows the common code system for all its units, so that consolidation of
accounts will not be a big problem for them. This is also concerned with preparation of
budgets. The daily receipt is credited to bank of branch which in turn is credited to corporate
office at the end of each day. The fund is also allocated by the corporate office on the basis
of budget.
Costing and material Account Section
Costing section in VODAFONE is a part of finance department. Process costing has been
implemented. The main task of this department is to classify, accumulation assignment and
control of cost. The information supplied by this department has a great importance to the
management in decision making. By cost splits the management will be in a position to
know where exactly wastages is more, or which method is causing runoff profits etc., it also
prepares the cost estimates, based on which the marketing department will make the bidding.
Another important function of this section is preparing the price stock ledger and major task
of this section is to looks after the capital payments.

42
Cash Section
The main function is to account the cash and bank balance. Other than this function the
actual payment of money is done through this section. The employee’s salary, contract
labours wages, supplier’s amount and receipt of customer’s payment all are through this
section.
The payment of salary for regular employee is made on last working day of every
month. Wage period is 25th of previous month to 24th of this month.11th of every month
supplementary payments are made like O.T, telephone bills etc. For supervisors and
executives the salary is credited to their accounts for which 6 to 7 banks are identified.
Here the books maintained for cash and bank transaction are:
 Cheque drawn register  Payment cash book
 Payment bank book  Receipt cash book
 Receipt bank book
Provident Fund Section
In VODAFONE there is separate department to maintain the provident fund of employees.
Company also contributes 12.5% in addition to the employee’s contribution. This
department maintains the records that whether the employee has taken loan or no, if an
employee has taken loan the loan amount is deducted from the total provident fund. If he has
not taken the employee gets the lump sum amount at the time of his retirement.
Internal Audit
It acts as a watch job of the various functions by the continuous checking and evaluation of
records, both financial as well as others. This section mainly functions as a service to
management. The main activity of internal audit is to physically verify the assets mentioned
in the records. This investigation helps in identifying losses, pilferage on inventory and
controlling them.
BUSINESS DEVELOPMENT DEPARTMENT
There has been an emerging trend of increase in communication infrastructure. Business
Development department deals mainly with Business-to-Business transactions (B2B). The
following are the main functions of Business Development department:
I. Participating in Tenders
VODAFONE is the main service provider of advanced technologies like data circuits, both
local and long distance, speech circuits, Managed Leased Line Network [MLLN], Virtual
Private Networks, etc. There has been a considerable increase in demand for these services,

43
and also the service providers. Hence, a separate department has been formed to handle
these services. Participating in Tenders is one of the important functions of Business
Development department. VODAFONE participates in all the public and private tenders.
II. Providing Consultations
Apart from providing communication services, VODAFONE also plays an active role in
providing consultations, both for the existing customers and the non customers of
VODAFONE. These consultations involve the suggestions in acquiring the type of network,
bandwidth to be used, etc.
III. Designing Networks
VODAFONE also specializes in designing and building networks for its customers. The
networks designed are both in a single leased line and also between the leased lines.
IV. Providing Hardware Networks
Apart from designing and building networks, VODAFONE also provides hardware
necessities like modems and other requirements, for building the communication networks.
Hierarchical Functions
Operations Section
The operations section of the Business Development department deals with all the
operational functions like:
o Participating in tenders
o Provision of services
o Maintenance of Services
For any work like participation of tenders, JTO, under the supervision of the Additional
Director, will make a technical report an estimate of the equipment and the labour involved.
The prepared report will go to the DGM, who will look for any errors and clarifications and
sends it for the approval of the GM, who after approves it, sends the report to the CGM.
Further, Operations section is also responsible for the technical work such as, installation of
the network and their maintenance.
Customer Services section
Customer Services section is a separate section which deals with all the complaints and
grievances from the customer. All the customer grievances are noted by the SDE, Customer
Grievances and are sent to the DGM customer service, who in turn responds to the
complaints. The customer services section deals with the services like taking bills from the

44
customers and also provision of information regarding the services. JTO customer services
deals with the technical aspects of the customer service.

45
PLANNING DEPARTMENT
For any task to be executed successfully there should be a well-made plan. The planning
department consists of three sections
1. Switching Planning
2. Transmission Planning
3. Building Planning
Switching Planning
Switching process is like the heart of the telecommunication process. In the past, there were
manual and analogue exchanges. Now those exchanges have given their way to the digital
exchanges, which are superior, both in their performance and capacity
Some of the digital exchanges, adapted by VODAFONE are:-
 E10B  OCB
 SIEMENS  ERRIKSON

Each of the exchanges has a capacity of 2.5 Lakh. Switching planning department deals with
the planning of installation of future exchanges by estimating the future increase in the
number of connections. Switching department deals with the exchanges, which are in due
course of overload and suggest the remedy, either to install a new exchange or to upgrade
the present one?
Material Management Switching
This section deals with the management of the materials required for the installation and
maintenance of the exchanges. The main materials required for a switching exchange are
computers, drop wire, jumper wire, etc. An estimate for a year of these materials is made in
advance and an approval is got from the CGM.After the approval from CGM, Tenders are
invited for various materials and the lowest bid is invited for the supply of the materials.
JTO, Switching, under the supervision of SDE switching, looks into the technical aspects
involved in the Material Management. AD, switching is responsible for calling of tenders
and picking the lowest bids. All the transactions should be done under the approval of DGM
and GM planning.
Transmission Planning
The telephone traffic in an area may differ from another area. Hence, the exchanges
installed, should be well distributed in terms of area, so as to provide effective transmission.
This aspect is looked into, by the transmission department. The areas in which, there is more

46
traffic are given, extra exchanges or upgraded exchanges. The technical aspects are looked
into, by JTO.
Transmission Planning, in the supervision of SDE, AD Transmission Planning looks into the
aspects of provision or up gradation of exchanges. All these aspects are done under the
supervision of AGM Transmission, who reports to DGM planning.
Land and Buildings Planning
This section of planning deals with the future requirements of Land and Buildings. The need
of Land and Buildings arises from the increase in the number of exchanges, due to the
increase in the telephone traffic, which is further related to increase in the number of users.
SDE Buildings looks into the area and the capacity of the buildings. Based on the capacity,
SDE civil looks into the technical aspects. Both of them are under the supervision of AGM,
Land and Buildings, who further reports to DGM, planning.
NETWORK DEPARTMENT
VODAFONE is the only operator in the telecom field to have its reach to each and every
nuke and corner of the country. It has its network available, even in the remote villages.
Hence it has an immense chance of spreading and developing its network.For the private
operators, to expand their network to the remote locations is a very difficult and expensive
process.VODAFONE has a policy of giving some of its lines, on lease to the private
operators. A certain bandwidth of VODAFONE is allotted for the use of the private
operators. All the private operators, existing in India take a certain Bandwidth from
VODAFONE as lease. Network Coordination department looks into the issue of allotting
Bandwidth to the private operators.
There are two sections in the Network Coordination department:
1. Network Coordination
2. Line Control
Network Coordination section deals with the provision of bandwidth to the private
operators. JTO, Network Coordination, under the supervision of SDE, looks into the process
of allotting bandwidth to the private operators, who reports to AGM. Line Control
department looks into the process of control of traffic. JTO looks into the technical aspects,
under the supervision of SDE. Any requirement of additional bandwidth is immediately
reported to AGM.
SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in

47
a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to achieve
that objective. The technique is credited to Albert Humphrey, who led a convention at
Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A
SWOT analysis may be incorporated into the strategic planning model. Strategic Planning
has been the subject of much research.
 Strengths: characteristics of the business or team that give it an advantage over
others in the industry.
 Weaknesses: are characteristics that place the firm at a disadvantage relative to
others.
 Opportunities: external chances to make greater sales or profits in the environment.
 Threats: external elements in the environment that could cause trouble for the
business.

First, the decision makers have to determine whether the objective is attainable,
given the SWOTs. If the objective is NOT attainable a different objective must be selected
and the process repeated.
PROBLEM IDENTIFICATION AND SOLUTION
Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is
certainly on a financial ground that's sound.  The Company has a net worth of Rs. 86,476
crores (US$ 19.26 billion), Authorized Equity capital of Rs. 10,000 crores (US $ 2.22
billion), Paid up Equity Share Capital of Rs. 5,000 crores (US $ 1.11 billion) and Revenue is
Rs. 32,045 crores (US $ 7.13 billion) in 2009-10.
The downward performance path in VODAFONE during the period 2005-10 is mainly
on account of following reasons:
i. Reduction in Revenue:
There has been a decline in revenue from wire-line business due to churning of Subscribers
of Fixed Line Services in view of preference to Mobile telephony and fall in ARPU
(Average Revenue Per User). Though there is a net increase in number of connections in
case of Wireless connections yet revenue decreased mainly due to the reduction in tariff by
VODAFONE in the competitive market.
ii. Increase in Expenditure:

48
The staff expenditure has increased due to implementation of recommendations of Wage
Revision Committee. The wage revision has alone caused an additional expenditure of Rs.
2900 crores over the previous year on account of payment of arrears for the period from
01.01.2007 to 31.03.2010. 
iii. Lack of store materials like cables, broad band modems and other accessories, which
are essential for provision of fixed access networks like basic telephony and broad
band. This is due to the non-allocation of funds.
iv. Access Deficit Charges (ADC, a levy being paid by the private operators to
VODAFONE for provide service in non-lucrative areas especially rural areas) has
been slashed by 20% by TRAI, w.e.f. April 1, 2009.  The reduction in ADC has hit
the bottom lines of VODAFONE.
RECRUITMENT AND SELECTION IN VODAFONE
MARKETING DETAILS
Marketing generally refers as the task of creating, promoting and delivering goods and
services to consumers and business. Marketing managers seeks to influence the Level of
timing and composition of demand to meet the organization’s objectives .Marketing people
are involved in 10types of entities: goods, services, experiences, Events, persons, places,
properties, organization, information and VODAFONEs. The Marketing concept rests on
four pillars: target market, customer needs, integrated Marketing and profitability.
“Marketing is defined as a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products and services
of value with others.
The basic four P’s of marketing are PRODUCT, PRICE, PLACE and PROMOTION.
The last few years have seen an increased attention to mutual funds across all genres of
investors’ big or small, individuals or corporate
FINANCIAL DETAILS
IMPORTANCE OF FINANCE
Finance is regarded as the life blood of a business enterprise. This is because in the Modern
money oriented economy. Finance is the one of the basic foundation of all Kind of electronic
activity. It is the master key which provides access to the entire Source for being employed
in manufacturing and merchandizing activities. It has rightly been said the business needs
money to make more money. However it is also true that money begets more money, only

49
when it is properly managed. Hence, efficient management of every business enterprise is
closely linked with efficient Management of its finance.
MEANING OF BUSINESS FINANCE
In general finance may be defined as the provision of money at the time it is wanted.
However, as a management function it has a special meaning. Finance function may Be
defined as the procurement of funds and their effective utilization. Some of the Authoritative
definitions are as follows:
“Business finance is that business activity which is concerned with the acquisition and
Conservation of capital funds in meeting financial needs and overall objectives of far
Business enterprise.”
“Business finance can broadly be defined as the activity concerned with planning rising,
controlling and administrating of the funds used in the business.”
RECRUITMENT:
Recruitment is concerned with developing suitable techniques for attracting more and more
candidates. The aim of personnel planning is to determine the needs for persons both in
terms of number and type. For deciding about the number both present and future
requirements should be taken into account. If there are expansion plans in near future then
these requirements should also be considered. Besides number, the type of persons needed is
also important. The educational and technical requirements to manage various jobs should e
properly analyzed so that right type of persons is employed.
Recruitment is sometimes confused with employment. The two are not one and the same.
Recruitment is just one step in the process of employment. Recruitment is a linkage activity
bringing together those with jobs and those seeking jobs. When more persons apply for jobs
then there will be scope for recruiting better persons.
DEFINITION:
“Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.”
PROCESS OF RECRUITMENT –
It passes through the following stages:
1) Recruitment process begins when personnel department receives requisition for
recruitment from any department of the company.

50
 2) Locating and developing the sources of required number and type of employees.
3) Identifying the prospective employees with required characteristics.
4) Developing the techniques to attract the desired candidates.
5) The next stage in the process is to stimulate as many candidates as possible.
6) Evaluating the effectiveness of recruitment process.
SOURCES OF RECRUITMENT –
Before an organization actively begins to recruit applicants it should consider the mostly
likely source of the type of employee it needs. Some companies try to develop new sources
while most try to tackle the existing sources they have. These sources accordingly may be
termed as internal and external.
Internal Sources –
This is one of the important sources of recruitment. The employees already working
in the organization may be more suitable for higher jobs than those recruited outside.
Internal sources consist of the following:

1) Present Employees:
Promotions and transfers among the present employees can be a good source of internal
recruitment.
2) Employee Referrals:
In an organization with a large number of employees referrals can provide quite a large pool
of potential organizational members.
3) Former Employee:
These are another internal source of recruitment. Some retired employees may be willing to
come back to work.
4) Previous Employees:
Those who have previously applied for jobs can be contacted by mail.
External Sources: These are as follows –
1. Advertisement
2. Professional Organization
3. Data Bank
4. Walk in
5. Recruiting Agencies
6. Competitors

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7. Displaced Persons
8. E-recruitment
9. Cold calling
RECRUITMENT PROCESS COMPANY ADOPTS–
1) Internal sources
2) Advertisement
3) Consultants
4) Data bank
UNDERSTANDING SELECTION PROCESS
Recruitment function helps the organization to develop a pool of prospective human
resources. It is difficult for the HR manager to employ the suitable people out of the pool.
Infact, many organizations face critical problems in choosing the people. Selection
techniques and methods reduce the complexities in choosing the right candidates for the job.
After identifying the sources of human resources, searching for prospective employees and
stimulating them to apply for jobs in an organization, the management has to perform the
function of selecting the right employees at the right time. The obvious guiding policy in
selection is the intention to choose the best people who have good social contact. The
objective of the selection decision is to choose the individual who can most successfully
perform the job from the pool of qualified candidates. The selection procedure is the system
of functions and devices adopted in a given company to ascertain whether the candidate
specifications are matched with the job specifications and requirements or not.
The selection process can be successful if the following requirements are satisfied:
 Someone should have the authority to select. This authority comes from the employment
requisition, as developed by an analysis to the workload and work force.
 There must be some standard of personnel with which a prospective employee may be
compared, i.e. a comprehensive job description and job specification should be available
before hand.
 There must be a sufficient number of applicants from whom the required number of
employees may be selected.
The ability of an organization to attain its goal effectively and to develop in a dynamic
environment largely depends upon the effectiveness of its selection programme. If the right
person is selected, he is valuable asset to the organization
SELECTION PROCEDURE:

52
Selection procedure employs several methods of collecting information about the candidates
qualifications, experience, physical and mental ability, nature and behavior, knowledge and
aptitude for judging whether a given applicant is suitable or not for the job. Therefore the
selection procedure is not a single act but is essentially a series of methods or stages by
which different types of information can be secured through various selection techniques. At
each step facts may come to light, which are useful for comparison with the job requirement
and employee specifications.
Steps in Scientific Selection Procedure:

 Job analysis
 Recruitment
 Application form
 Written examination
 Preliminary interview
 Tests
 Medical examination
 Reference checks
 Line manager s decision
IN DETAIL EXPLANATION:
(A) JOB ANALYSIS:
Job analysis is the basis for selecting the right candidates. Every organization should finalize
the job analysis, job description, job specification and employee specifications before
proceeding to the next step of selection.
(B) HUMAN RESOURCE PLAN:
Every company plans for the required number of and kind of employees for a future date.
This is the basis for recruitment function.
(c) RECRUITMENT
Recruitment refers to the process of searching for prospective employees and stimulating
them to apply for jobs in an organization. It is the basis for the remaining technologies of the
screening the candidates in order to select the appropriate candidates for the jobs
(D) DEVELOPMENT OF BASES FOR SELECTION:
The company has to select the appropriate candidates from the pool of applicants. The
company develops or borrows the appropriate bases/techniques for screening the candidates
in order to select the appropriate candidates for the jobs.

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(E) APPLICATION FORM:
Application form is also known as application blank. The techniques of application blank are
traditional and widely accepted for securing information from the prospective candidates. It
can also be used as a device to screen the candidates at the preliminary level. Many
companies formulate their own style of application forms depending upon the requirement
of information based on the size of the company, nature of business activities, type and level
of the job etc. Information is generally required on the following items in the application
forms:

 Personal background information

 Educational qualifications

 Work experience

 Salary (drawing and expecting)

 Personal attainments including likes and dislikes

 References
(F) WRITTEN EXAMINATION:
Organizations have to conduct written examination for the qualified candidates after they are
screened on the basis of the application blanks so as to measure the candidate s ability in
arithmetical calculations, to know the candidate s attitude towards the job, to measure the
candidate s aptitude, reasoning, knowledge in various disciplines, general knowledge and
English language.
(G) PRELIMINARY INTERVIEW:
The preliminary interview is to solicit necessary information from the prospective
applications and to assess the applicant s suitability to the job. An assistant in the personnel
department may conduct this preliminary interview. The information thus provided by the
candidate may be related to the job or personal specifications regarding education,
experience, salary expectations, attitude towards job, age, physical appearance and other
requirements etc. Thus, preliminary interview is useful as a process of eliminating the
undesirable and unsuitable candidates. If a candidate satisfies the job requirements regarding
most of the areas, he may be selected for further process. Preliminary interviews are short

54
and known as stand up interviews or sizing up of the applicants or screening interviews.
However, certain required amount of care is to be taken to ensure that the desirable workers
are not eliminated. This interview is also useful to provide the basic information about the
company to the candidate.
(H) BUSINESS GAMES:
Business games are widely used as a selection technique for selecting management trainees,
executive trainees and managerial personnel at junior, middle and top management
positions. Business games help to evaluate the applicants in the areas of decision-making,
identifying the potentialities, handling the situations, problem- solving skills, human
relations skills etc. participants are placed in a hypothetical work situation and are required
to play the role situations in the game. The hypothesis is that the most successful candidate
in the game will be most successful one on the job.
GROUP DISCUSSION is used in order to secure further information regarding the
suitability of the candidate for the job. Group discussion is a method where groups of the
successful applicants are brought around a conference table and are asked to discuss either a
case study or subject matter. The candidates in the group are required to analyze, discuss,
find alternative solutions and select the sound solution. A selection panel then observes the
candidates in the areas of initiating the discussion, explaining the problem, soliciting
unrevealing information based on the given information and using common sense, keenly
observing the discussion of others, clarifying controversial issues, influencing others,
speaking effectively, concealing and mediating arguments among the participants and
summarizing or concluding aptly.
The selection panel, based on its observation, judges the candidate s skill and ability and
ranks them according to their merit.
In some cases, the selection panel may also ask the candidates to write the summary of the
group discussion in order to know the candidate s writing ability as well.
Recruitment and Selection Types of Test:
Tests are classified into six classes; each class is again divided into different types of tests.
They are:
APTITUDE TESTS:
These tests measure whether an individual has the capacity or latent ability to learn a given
job if given adequate training. Aptitudes can be divided into general and mental ability or
intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc.

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General aptitude test is of two types namely intelligence quotient (IQ) and emotional
quotient (EQ).
(1) Skill tests:
These tests measure the candidate s ability to do a job perfectly and intelligently. These tests
are useful to select the candidates to perform artistic jobs, product design, design of tools,
machinery etc. The candidates can be selected for assembly work, testing and inspection
also.
(2) Mechanical aptitude tests:
These tests measure the capabilities of spatial visualization, perceptual speed and knowledge
of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical
employees, technicians etc.
(3) Psychomotor tests:
These tests measure abilities like manual dexterity, motor ability and eye hand coordination
of candidates. These tests are useful to select semi-skilled workers and workers for repetitive
operations like packing and watch assembly.
(4) Clerical aptitude tests:
These types of tests measure specific capacities involved in office work. Items of these tests
include spelling, computation, comprehension, copying, word measuring etc.
ACHIEVEMENT TESTS:
These tests are conducted when applicants claim to know something as these tests are
concerned with what one has accomplished. These tests are more useful to measure the value
of a specific achievement when an organization wishes to employ experienced candidates.
These tests are classified into (a) job knowledge test and (b) work sample test. Thus, the
candidate s achievement in his career is tested regarding his knowledge about the job and
actual work experience.
SITUATIONAL TESTS:
This test evaluates a candidates in a similar real life situation. In this test the candidate is
asked either to cope with the situation or solve critical situations of the job.
(1) Group discussion:
This test is administered through the group discussion approach to solve a problem under
which candidates are observed in the areas of initiating, leading, proposing valuable
VODAFONEs, conciliating skills, oral communicating skills, coordinating and concluding
skills.

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(2) In basket:
Situational test is administered through in basket method. The candidate in this test is
supplied with actual letters, telephone and telegraphic message, reports and requirements by
various officers of the organization, adequate information about the job and organization.
The candidate is asked to take decisions on various items based on the in basket information
regarding requirements in the memoranda.
INTEREST TESTS:
These tests are inventories of the likes and dislikes of candidates in relation to work, job,
occupations, hobbies and recreational activities. The purpose of this test is to find out
whether a candidate is interested or disinterested in the job for which he is a candidate and to
find out in which area of the job range/occupation the candidate is interested. The
assumption of this test is that there is a high correlation between the interest of a candidate
in a job and job success. Interest inventories are less faked and they may not fluctuate after
the age of 30.
PERSONALITY TESTS:
These tests prove deeply to discover clues to an individual s value system, his emotional
reactions and maturity and characteristic mood. They are expressed in such traits like self-
confidence, tact, distrust, initiative, emotional control, optimism, decisiveness, sociability,
conformity, objectivity, patience, fear, judgment dominance or submission, impulsiveness,
sympathy, integrity, stability and self-confidence.
(1) Objective tests:
Most personality tests are objective tests as they are suitable for group testing and can be
scored objectively.
(2) Projective tests:
Candidates are asked to project their own interpretation of certain standard stimulus basing
on ambiguous pictures, figures etc. under these tests. Personality tests have disadvantages in
the sense that sophisticated candidates can fake them and most candidates give socially
acceptable answers. Further, personality inventories may not successfully predict job
success. A number of corrective measures tried as personality inventories are widely subject
to faking. They are:

 Forced choice of Edward s personnel preference schedule.

 Gordon personal profile.

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  The Minnesota Multi-phasic Inventory offers different methods for identifying
faking. The faking can be countered by repeating the same question in different parts
to measure consistency.
MULTI-DIMENSIONAL TESTING:
However, the need for multi-skills is being felt be most of the companies consequent upon
globalization, competitiveness and the consequent customer-centered strategies.
Organization have to develop multidimensional testing in order to find out whether the
candidates possess a variety of skills or not, candidate s ability to integrate the multi-skills
and potentiality to apply them based on situational and functional requirement.
(J) INTERVIEW:
Final interview follows after tests. This is the most essential step in the process of selection.
In this step the interviewer matches the information obtained about the candidate through
various means to the job requirements and to the information obtained through his own
observation during the interview. The different types of interviews are:
PRELIMINARY INTERVIEW:
(1) Informal interview:
This is the interview, which can be conducted at any place by the person to secure the basic
and non-job related information. The interaction between the candidate and the personnel
manager when the former meets the latter to enquire about the vacancies or additional
particulars in connection with the employment advertisement is an example of the informal
interview.
(2) Unstructured interview:
In this interview, the candidate is given the freedom to tell about himself by revealing his
knowledge on various items/areas, his background, expectations, interest etc. Similarly, the
interviewer also provides information on various items required by the candidate.
CORE INTERVIEW:
It is normally the interaction between the candidates and the line executive or experts on
various areas of job knowledge, skill, talent etc. This interview may take various forms like:
(1) Back ground information interview:
This interview is intended to collect the information which is not available in the
application blank and to check that information provided in the application blank
regarding education, place of domicile, family, health, interest, hobbies, likes, dislikes
and extra curricular activities of the applicant.

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(2) Job and probing interview:
This interview aims at testing the candidate s job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, methods of handling those areas etc.
(3) Stress interview:
This interview aims at testing the candidate s job behavior and level of understanding during
the period of stress and strain. The interviewer tests candidate by putting him under stress
andstrain by interrupting the applicant from answering, criticizing his opinions, asking
questions pertaining to unrelated areas, keeping silent for unduly long periods after he has
finished speaking etc. Stress during the middle portion of the interview gives effective
results. Stress interview must be handled with utmost care and skills. This type of interview
is often invalid, as the interviewer s need for a job and his previous experience in such type
of interviews may inhibit his actual behavior under such situations.
(4) Group discussion interview:
There are 2 methods of conducting group discussion interviews, viz. group interview
method and discussion interview method. All the candidates are brought into one room and
are interviewed one by one under group interview. This method helps a busy executive to
save valuable time and gives a fair account of the objectivity of the interview to the
candidates. Under the discussion interview method, one topic is given for discussion to the
candidates who assemble in one room and they are asked to discuss the topic in detail. This
type of interview helps the interviewer in appraising certain skills of the candidates like
initiative, inter-personal skills, dynamism, presentation, leading, comprehension,
collaboration etc. Interviewers are at ease in this category of interview because of its
informality and flexibility.
(5) Formal and structured interview:
In this type of interview, all the formalities, procedures like fixing the value, time, panel of
interviewers, opening and closing, intimating the candidates officially etc. are strictly
followed in arranging and conducting interview. The course of the interview is preplanned
and structured, in advance, depending on job requirements.
(6) Panel interview:
A panel of experts interviews each candidate, judges his performance individually and
prepares consolidated judgements. This type of interview is known as panel interview.
Interviewers for middle level and senior level mangers are normally conducted are the panel
of experts.

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(7) Depth interview:
In this interview, the candidate would be examined extensively in core areas of job skills and
knowledge. Experts test the candidate s knowledge in depth. Depth interviews are conducted
for specialist jobs.
DECISION-MAKING INTERVIEW:
After the experts including the line managers of the organization in the core areas of the job
examine the candidates, the head of the department/section concerned interviews the
candidates once again, mostly through informal discussion. The interviewer examines the
interest of the candidate in the job, organization, reaction/adaptability to the working
conditions, career planning, promotional opportunities, work adjustment and allotment etc.
The personnel manger also interviews the candidates with a view to find out his
reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc.
The head of the department and the personnel manager exchange the view and then they
jointly inform their decision to the chairman of the interview board, which finally makes the
decision about the candidate s performance and their ranks in the interview. Most of the
organizations have realized that employee s positive attitude matters much rather than
employee s skill and knowledge. Employees with positive attitude contribute much to the
organization. Hence, interviewers look for the candidates with the right attitude while
making final decision
. (K) MEDICAL EXAMINATION:
Certain jobs require certain physical qualities like clear vision, perfect hearing unusual
stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals
whether or not a candidate possesses these qualities. Medical examination can give the
following information:
 Whether the applicant is medically suited for the specific job
 Whether the applicant has health problems or psychological attitudes likely to interfere
with work efficiency or future attendance.
 The offer. Whether the applicant suffers from bad health which should
be corrected before he can work satisfactorily
 It reveals the applicant s physical measurements and
(L) REFERENCE CHECKS:
After completion of the final interview and medical examination, the personnel department
will engage in checking references. Candidates are required to give the names of references

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in their application forms. These references may be from the individuals who are familiar
with the candidate’s academic achievement or form the applicant s previous employer, who
is well versed with the applicant s job performance, and sometimes from coworkers. Incase
the reference check is from the previous employer; information for the following areas may
be obtained. They are job title, job description, and period of employment, pay and
allowances, gross emoluments, benefits provided, rate of absence, willingness of the
previous employer to employ the candidate again and soon. Further, information regarding
candidate s regularity at work, character, progress etc. can be obtained.
Often a telephone call is much quicker. The method of mail provides detailed information
about the candidate s performance, character and behavior. However, a personal visit is
superior to the mail and telephone methods and is used where it is highly essential to get the
detailed, actual information, which can also be secured by observation. Reference checks are
taken as a matter of routine and treated casually or omitted entirely in many organizations.
But a good reference check used sincerely will fetch useful and reliable information to the
organization.
(M) FINAL DECISION BY THE LINE MANAGER:
The line manager concerned has to make the final decision whether to select or reject a
candidate after soliciting the required information through techniques discussed earlier. The
line manager has to take much care in taking the final decision not only because of economic
implications but also because of behavioral and social implications. A careless decision of
rejecting would impair the morale of the people and they would suspect the selection
procedure and the basis of selection of this organization. A true understanding between line
managers and personnel managers should be established to take proper decisions.
(N) JOB OFFER:
Thus, after taking the final decision, the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the
successful candidates either immediately or after some time depending upon its time
schedule. The candidate after receiving job offer communicates his acceptance to the offer
or requests the company to modify the terms and conditions of employment or rejects the
offer.

(O) EMPLOYMENT:

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 The company may modify the terms and conditions of employment as requested by the
candidate. The company employs those candidates who accept the job offer with or with out
modification of terms and conditions of employment and place them on the job.
With the employment of the candidate the recruitment and selection process is
completed.
1.13 DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT
Training and development go hand in hand and are often used synonymously but there is a
difference between them. Training is the process of learning a sequence of programmed
behavior. It is an application of knowledge. It gives people an awareness of the rules and
procedures to guide their behavior. It intends to improve their performance on the current
job and prepares them for an intended job.

Development is a related process. It covers not only those activities, which improve job
performance, but also those, which bring about growth of the personality. It helps individual

in the progress towards maturity and actualization of potential capabilities so that they can
become not only good employees but better human beings.

PRINCIPLES OF TRAINING
MOTIVATION Learning is enhanced when the learner is motivated. Learning experience
must be designed so learners can see how it will help in achieving the goals of the
organization. Effectiveness of training depends on motivation.

FEEDBACK

Training requires feedback. It is required so the trainee can correct his mistakes. Only
getting information about how he is doing to achieve goals, he can correct the deviations.

REINFORCEMENT

The principle of reinforcement tells the behaviors that are positively reinforced are
encouraged and sustained. It increases the likelihood that a learned behavior well be
repeated.

PRACTICE

Practice increases a trainee’s performance. When the trainees practice actually, they gain
confidence and are less likely to make errors or to forget what they have learned.

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INDIVIDUAL DIFFERENCES

Individual training is costly. Group training is advantageous to the organization. Individuals

vary in intelligence and aptitude from person to person. Training must be geared to the
intelligence and aptitude of individual trainee.

TRAINING PROGRAMMES FLOWING FROM TRAINING NEEDS:

The programmes are divided into three broad categories:

- Functional
- Behavioral
- General/ Omnibus programmes
1. Functional: The outcome of the training is measured by comparing the data pre-training
and post-training. A scale is developed for measuring the effectiveness of training based
on the % achievement of the objectives.
2. Behavioral: The effectiveness of the training of this nature is measured annually. This is
seen through the training need identification for the coming year for the employee. If the
training need is repeated there, then the training provided is taken as ineffective. If the
training need is repeated but with focus on a part of the need, then the training is
partially effective. If not repeated, then the training is effective.
3. General: These are the training needs flowing directly from the organizational needs.
Examples of these can be ISO 9000 training, ISO 14000 training and any awareness
training. These are omnibus training programmes, which are run for a large number of
employees.

The effectiveness of the training is measured by:

- Achievement of those organizational objectives within the time lines.

- Number of audit issues raised on the areas covered in the training.
- Any other such thing as defined in the training brochure.
 The effectiveness of the outside training programme is measured on the same line as
above. However, no detailed brochure is prepared for the same. The measurement
criterion for the programme is defined in the beginning of the programme and
effectiveness measured against the same.

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  A consolidated effectiveness report of the training programme is prepared at the end
of the year. The programmes that are found to be ineffective are reworked.
Training programme for testing out the training

Also there are training programmes, which are not flowing directly from the training needs
measurement of effectiveness of the training is not needed to be measured.

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 CHAPTER II

2.1 RESEARCH METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve
the problem or attain its objectives. It is a very important guideline and lead to completion of
any project work through observation, data collection and data analysis.
According to Clifford Woody, “Research Methodology comprises of defining & redefining
problems, collecting, organizing &evaluating data, making deductions &researching to
conclusions.” Accordingly, the methodology used in the project is as follows: -

 Defining the objectives of the study

 Framing of questionnaire keeping objectives in mind (considering the objectives)
 Feedback from the employees
 Analysis of feedback
 Conclusion, findings and suggestions.
2.2 SELECTION OF SAMPLE SIZE
In order to take a reasonable sample size and not to disturb the functioning of the
organization, a sample size of reasonable strength of the Company has been taken in order to
arrive at the present practices of training in the Company. Accordingly, 20 officers and 40
workers have been selected at random from all the departments of the organization and
feedback forms (questionnaire) have been obtained. The data has been analyzed in order to
arrive at present training practices in the organization.

2.3 SAMPLING TECHNIQUE USED

The technique of Random Sampling has been used in the analysis of the data. Random
sampling from a finite population refers to that method of sample selection, which gives
each possible sample combination an equal probability of being picked up and each item in
the entire population to have an equal chance of being included in the sample. This sampling
is without replacement, i.e. once an item is selected for the sample, it cannot appear in the
sample again.

2.4 DATA COLLECTION

To determine the appropriate data for research mainly two kinds of data was collected
namely primary & secondary data as explained ahead:

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PRIMARY DATA
Primary data are those, which were collected afresh & for the first time and thus happen to
be original in character. However, there are many methods of collecting the primary data; all
have not been used for the purpose of this project. The ones that have been used are:

 Questionnaire
 Informal Interviews
 Observation

SECONDARY DATA
Secondary data is collected from previous researches and literature to fill in the respective
project. The secondary data was collected through:

 Text Books
 Articles
 Journals
 Websites
2.5 STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are:

 Pie Charts
 Tables

2.6 LIMITATIONS OF THE STUDY

The following are the limitations of the study:

 The sample size was small and hence the results can have a degree of variation.
 The response of the employees in giving information was lukewarm.
 Organization’s resistance to share the internal information.
 Questionnaire is subjected to errors.
2.7 SCOPE OF THE STUDY

Training Effectiveness is the process wherein the management finds out how effective it has
been at training and developing the employees in an organization.

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  This study gives some suggestions for making the present training and development
system more effective.
 It gives organization the direction, how to deal differently with different employees.
 It identifies the training & development needs present among the employees.

MANAGERIAL USEFULNESS OF THE STUDY

 The effectiveness of the training programmes can be established through this study.
 This study helps to understand, analyze & apply the core concepts of training in an
organization.
 Managers would be able to identify the need of training for its employees.
 Managers would know what employees think of the training and development
programmes and make changes if necessary.
2.8 OBJECTIVES
 To examine the useful of training.
 To know and understand staff awareness of training methods at SGM agencies and
human resources services.
 To identify how training can help employees acquire and improve their skills,
knowledge, and attitudes.
 To Investigate whether training can help motivate employees and avoid mistakes
2.9 NEED FOR TRAINING

 To impart to the new entrants the basic knowledge and skills they need for definite tasks.
 To assist employees to function more effectively in their present positions by exposing
them to new concepts.
 To build a line of competent people and prepare them to occupy more responsible
positions.
 To reduce the supervision time, wastage and spoilage of new material.
 To reduce the defects and minimize the industrial accidents.
 To ensure the economical output of the required quality.
 To prevent obsolescence.
 To promote individual and collective morale, responsibility and cooperative attitudes etc.

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 CHAPTER III
3.1 Literature Review
 Cho (1998) points out the reasons for which reforms were made in Indian capital
market stating the after reform developments. Shah (1999) describes the financial
sector reforms in India as an attempt at developing financial markets as an
alternative vehicle determining the allocation of capital in the economy.
 Shah and Thomas (2003) review the changes which took place on India’s equity
and debt markets in the decade of the 1990s. This has focused on the importance of
crises as a mechanism for obtaining reforms.
 Mohan (2004) provides the rationale of financial sector reforms in India, policy
reforms in the financial sector, and the outcomes of the financial sector reform
process in some detail.
 Shirai (2004) examines the impact of financial and capital market reforms on
corporate finance in India. India’s financial and capital market reforms since the
early 1990s have had a positive impact on both the banking sector and capital
markets. Nevertheless, the capital markets remain shallow, particularly when it
comes to differentiating high-quality firms from low-quality ones (and thus lowering
capital costs for the former compared with the latter). While some high-quality firms
(e.g., large firms) have substituted bond finance for bank loans, this has not occurred
to any significant degree for many other types of firms (e.g., old, export-oriented and
commercial paper-issuing ones). This reflects the fact that most bonds are privately
placed, exempting issuers from the stringent accounting and disclosure requirements
necessary for public issues. As a result, Company remain major financiers for both
high-and low-quality firms. The paper argues that India should build an
infrastructure that will foster sound capital markets and strengthen Company’
incentives for better risk management.
 Chakrabarti and Mohanty (2005) discuss how capital market in India is evolved in
the reform period. Thomas (2005) explains the financial sector reforms in India with
stories of success as well as failure.
 Bajpai (2006) concludes that the capital market in India has gone through various
stages of liberalization, bringing about fundamental and structural changes in the
market design and operation, resulting in broader investment choices, drastic
reduction in transaction costs, and efficiency, transparency and safety as also

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 increased integration with the global markets. The opening up of the economy for
investment and trade, the dismantling of administered interest and exchange rates
regimes and setting up of sound regulatory institutions have enabled time.
 Gurumurthy (2006) arrives at the conclusion that the achievements in the financial
sector indicate that the financial sector could become competitive without involving
unhealthy competition, within the constraints imposed by the macro-economic
policy stance.
 Mohan (2007) reviews India’s approach to financial sector reforms that set in
process since early 1990s. Allen, Chakrabarti, and De (2007) concludes that with
recent growth rates among large countries second only to China’s, India has
experienced nothing short of an economic transformation since the liberalisation
process began in the early 1990s.
 Chhaochharia (2008) arrives at the conclusion that India has a more modern
financial and banking system than China that allocates capital in a more efficient
manner. However, the study is skeptical about who would emerge with the stronger
capital market, as both the country is facing challenges regarding their capital
markets.
 Prasad and Rajan (2008) argues that the time has come to make a more
coAGHAIed push toward the next generation of financial reforms. The study
advocates that a growing and increasingly complex market-oriented economy and its
greater integration with global trade and finance will require deeper, more efficient,
and well-regulated financial markets. The survey and review of literature about the
financial sector reforms in India reveals that the reforms have been pursued
vigorously and the results of the reforms have brought about improved efficiency
and transparency in the financial sector. The reforms also brought into inter-linkage
of financial markets across the globe leading to new product development and
sophisticated risk management tools. Derivatives in general perform as an instrument
to hedge the risk arising from movement in prices not only in commodity markets
but also in securities market.
 Bose, Suchismita conducted research on (2006) found that Derivatives products
provide certain important economic benefits such as risk management or
redistribution of risk away from risk-averse investors towards those more willing and
able to bear risk. Derivatives also help price discovery, i.e. the process of

69
 determining the price level for any asset based on supply and demand. These
functions of derivatives help in efficient capital allocation in the economy. At the
same time their misuse also poses threat to the stability of the financial sector and the
overall economy.
 Routledge, Bryan and Zin, Stanley E of Carnegie Mellon University conducted
research on “Model UAGHAIainty and Liquidity” in year 2001. Extreme market
outcomes are often followed by a lack of liquidity and a lack of trade. This market
collapse seems particularly acute for markets where traders rely heavily on a specific
empirical model such as in derivative markets.
 Sen Shankar Som and Ghosh Santanu Kumar (2006) studied the relationship
between stock market liquidity and volatility and risk. The paper also deals with time
series data by applying “Cochrane Orchutt two step procedures”. An effort has been
made to establish a relation between liquidity and volatility in their paper. It has been
found that there is a statistically significant negative relationship between risk and
stock market liquidity. Finally it is concluded that there is no significant relationship
between liquidity and trading activity in terms of turnover.

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 CHAPTER IV

4.1 DATA ANALYSIS &INTERPRETATION

1- Your organization considers training as a part of organizational

strategy. Do you agree with this statement?

RESPONSE NO. OF RESPONDENTS PERCENTAGE

STRONGLY AGREE 13 52
AGREE 1 4
SOME WHAT AGREE 4 16
DISAGREE 7 28

TOTAL 25 100
INTERPRETATION

training as a part of oraganisation strategy

120
100
e
100
m
N p
o l 80
. o
y 60 52
e
o e 40
f s 28 25 NO. OF RESPONDENTS
13 16
20 PERCENTAGE
7
1 4 4
0

%age

The above graph indicates that majority in organization considers training as a part of
organizational strategy.

71
 QUES 2): How many training programs will you attend in a year?

RESPONSE NO. OF RESPONDENT PERCENTAGE

LESS THEN 00-10 14 56
10- 20 2 8
20-40 6 24
MORE THAN 40 3 12
TOTAL 25 100

no. of training programs in a year

120
e 100
m 100
n
p 80
o
l o y 60
ee
. 56
s 40
NO. OF RESPONDENT
o 24 25 PERCENTAGE
f 20 14 12
8 6
2 3
0
LESS10 2020-40MORETOTAL
THEN 10THAN 40
%age

INTERPRETATION
The above chart indicates that 14 respondents attend less training programs
held in the organization.

72
 QUES 3): To whom the training is given more in your organization?

RESPONSE NO. OF RESPONDENT PERCENTAGE

SENIOR STAFF 3 12
JUNIOR STAFF 5 20
NEW STAFF 6 24
BASED ON REQUIRTMENT 13 52
TOTAL 25 100

to whom traning is given

120
e 100
m 100
n
p 80
o
loyee 52
. 60
s
40 24 25
20
o 20 12 13
5 6
f 3
0

NO. OF RESPONDENT
PERCENTAGE

%age

INTERPRETATION
The above chart shows indicates that training is provided on the basis of requirement.

73
 QUES 4): what are all the important barriers to training and development in
your organization?

NO. OF
RESPONSE RESPONDENT PERCENTAGE
TIME 4 16
MONEY 5 20
LACK OF INTEREST BY STAFF 6 24
NON-AVAILABILITY OF SKILL
TRAINER 10 40
TOTAL 25 100

barriers to training and development

120 100
e 100
m p l80
oyee
n s 60
40
o 40 25
20 24
. 20 6 10
5
0
NO. OF RESPONDENT
o PERCENTAGE
f

%age

INTERPRETATION

The graph indicates that the important barriers to training and development in the
organization are non-availability of skilled trainers.

74
 QUES 5): Enough practice is given for us during training session? Do you
agree with this statement?

RESPONSE NO. OF RESPONDENT PERCENTAGE

STRONGLY AGREE 14 56
AGREE 2 8
SOME WHAT AGREE 6 24
DISAGREE 3 12
25 100

practice given during training period

120
e 100
m 100
n
p
o 80
loyee
.
s 56
60

o 40 NO. OF RESPONDENT
24 25
f PERCENTAGE
20 14 12
8 6
2 3
0
STRONGLY AGREE SOME DISAGREETOTAL
AGREE WHAT AGREE
%age

INTERPRETATION

The above graph indicates that enough practice is given for employees during training
sessions

75
QUES 6): The training session conducted in your organization is useful. Do you agree
with this statement?

RESPONSE NO. OF RESPONDENT PERCENTAGE

STRONGLY AGREE 15 60
AGREE 5 20
SOME WHAT AGREE 5 20
DISAGREE 0 0
TOTAL 25 100

training is useful
120
e 100
m 100
n
p 80
o 60
loyee
.
s 60
40 25 NO. OF RESPONDENT
o 20 20 PERCENTAGE
15
f 20 5 5
00
0
STRONGLY AGREE SOME DISAGREETOTAL
AGREE WHAT
AGREE
%age

INTERPRETATION
The above graph indicates the training sessions conducted in the organization is useful.

76
QUES 7): Employees are given appraisal in order to motivate them to attend the
training. Do it agree with this statement?

RESPONSE NO. OF RESPONDENT PERCENTAGE

STRONGLY AGREE 14 56
AGREE 6 24
SOME WHAT AGREE 3 12
DISAGREE 2 8
TOTAL 25 100

training is motivation for employee

120
100
e 100
m p l80
oyee
n s 60
56
o 40
. 20
14 24 25
0 12
6 3 2 8 NO. OF RESPONDENT
o
f PERCENTAGE

%age

INTERPRETATION
The above graph indicates employees are given appraisal in order to motivate them to
attend the training.

77
QUES 8): How well the work place of training is physically organization?

NO. OF
RESPONSE RESPONDENT PERCENTAGE
EXCELLENCE 8 32
GOOD 6 24
AVERAGE 6 24
BAD 5 20
TOTAL 25 100

place of training
120
e 100
m 100

n p 80
o loyee
s
60
o
f 32 NO. OF RESPONDENT
40 25
24 24 20 PERCENTAGE
20 8 6 6 5
0

%age

INTERPRETATION

This graph indicates the trainers should possess technical skill to make the training effective.

78
 QUES 9): What are the general complains about the training session?

NO. OF
RESPONSE RESPONDENT PERCENTAGE
TAKE AWAY PRECIOUS TIME OF
EMPLOYEES 4 25
TOO MANY GAPS BETWEEN THE
SESSIONS 10 40
TRAINING SESSIONS ARE UNPLANNED 6 15
BORING AND NOT USEFUL 5 20
TOTAL 25 100

INTERPRETATION

complains about training session

120
e 100 100
m p l80
oyee
n s 60
o
40
40 25 25
o 15 20
20 10 6 5
f 4
0 NO. OF RESPONDENT
PERCENTAGE

%age

This graph indicates that there are too many gaps between the training sessions

79
 QUES 10): Time duration given for the training period is;

NO. OF
RESPONSE RESPONDENT PERCENTAGE
SUFFICIENT 5 20
TO BE EXTENDED 10 40
TO BE SHORTENED 8 32
MANAGEABLE 2 8
TOTAL 25 100

training period
120
e 100
m 100

n p 80
o l o y 60
ee
s 40
40 32
20 25
o
20 10 8 8 NO. OF RESPONDENT
f 5 2 PERCENTAGE
0

%age

INTERPRETATION
This graph indicates the reasons for shortage of skilled manpower at workplace are
lacks of support from senior staff.

80
4.1 Suggestions

The training and development programme which is organized by the

Company should result in effective co-ordination among the employees and
also adequate training is needed for the trainee to improve the
performance, skills and knowledge regarding object handling. So the
training period should be extended.

Bank employees’ feedback can be obtained about the training given by

the Company. So that training can be improved further to their
expectations and thus their services to the customers could be increased
and accomplishment of objectives could be made easier.

The bank employees have to be given a motivation on how important

training is in order to meet the routine problems and rewards can be given
to the person who attends the training consistently.

81
4.2 Limitations
During my training period although the management and plant personnel were very
co- operative & extended their full support, yet there were following limitations
associates with my study which I would like to mention:

 Due to the busy schedule of an organization I was unable to grasp the

precious words of the HRD Manager.
 The research was carried out in a short period.
 Limited sample size.

 The information given by the respondent might be biased some of them

might not be interested to given correct information.

 Some of the respondents of the survey were unwilling to share

information.

82
 CONCLUSION

Today, Company focus on designing programs and process and services to attract, develop
and retain top talent. Utilizing the latest technologies HR team has launched sophisticated
online systems that provide the employees with details on benefits, compensation, special
programs and internal job opportunities. As a global employee population continues to grow,
these cutting edge activities are increasingly important to the deliver world-class HR
solution. The core function of HRD in the banking industry is to facilitate performance
improvement, measured not only in terms of financial indicators of operational efficiency,
but also in terms of the quality of financial services provided. Factors like skills, attitudes
and knowledge of the human capital play a crucial role in determining the competitiveness
of the financial sector. The quality of human resources indicates the ability of Company to
deliver value to customers. Capital and technology are replicable but not the human capital
which needs to be valued as a highly valuable resource for achieving that competitive edge.
The primary emphasis needs to be on integrating human resource management strategies
with the business strategy. HRM strategies include managing change, creating commitment,
achieving flexibility and improving teamwork. The other processes representing the overt
aspects of HRM are recruitment, placement and performance management.

83
 Bibliography

www.infoindia.com

www.proindia.com

www.project.co.in

www.sip.co.n.surf.com

84
 Questionnaire:

Ques 1) - Your organization considers training as a part of organizational strategy.

Do you agree with this statement?

 STRONGLY AGREE
 AGREE
 SOME WHAT AGREE
 DISAGREE

Ques 2)- How many training programs will you attend in a year?
 Less than 10

 10-20

 20-40

 More than- 40

Ques 3)- To whom the training is given more in your organization?

 SENIOR STAFF
 JUNIOR STAFF
 NEW STAFF
 BASED ON REQUIRTMENT

Ques 4)- what are all important barriers to training and development in your
organization?

 Time

 Money

 Lack of interest by the staff

 Non-availability of skilled trainers

Ques 5)- Enough practice is given for us during training session? Do you agree with this
statement?

 JOB ROTATION

85
  EXTERNAL RATING

 CONFERENCE/DISCUSION

 PROGRAMMED INSTRUCTION

Ques 6)- The training session conducted in your organization is useful. Do you agree
with this statement?

 STRONGLY AGREE

 AGREE

 SOME WHAT AGREE

 DISAGREE

Quest 7)- The training session conducted in your organization is useful. Do you agree
with this statement?

 STRONGLY AGREE

 AGREE

 SOME WHAT AGREE

 DISAGREE

Ques 8)- Employees are given appraisal in order to motivate the m to attend the
training. Do you agree with this statement?

 STRONGLY AGREE

 AGREE

 SOME WHAT AGREE

Ques 9)- What are the general complains about the training session?

 TAKE AWAY PRECIOUS TIME OF EMPLOYEES

86
  TOO MANY GAPS BETWEEN THE SESSION

 TRAINING SESSION ARE UNPLANNED

 BORING AND USEFUL

Ques 10)- Time duration given for the training period is:
 SUFFICIENT

 TO BE EXTENDED

 TO BE SHORTEND

 MANAGEABLE

87