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Team Members:
Mahesh Ankam – 01 Ram Bhot – 05 Rajesh Dasari – 10 Dattaram Karanjekar – 18 Ashish Pawar - 35

.Communication Problem in Organization Company Name .L&T Finance Ltd.

Objectives • Define the problem arises due to improper communication • Resolve the problem using appropriate channel of communication • To achieve Minimum NPA as a organisational goal • Maintain good and healthy relationship with customer • Recommendations for Effective communication .

Business Process • Provides the working capital loans by channel finance to customer • Sanctioned Limit is valid up to 1 year • Tenure period for this loan is 90 days from payment date • Repayment followup starts after 60 days through telephonic calls and emails • After maturity period reminder letters sent to customer • NPA (non performing asset) in books is 90+180 days .

Problem • Outstanding amount of Rs. • Customer not responding to any telephonic calls and emails • XYZ Ltd. • Remain unpaid from last 10 months inspite of several reminders.10 crore with XYZ Ltd. under NPA books .

for over dues – not received any proper reply • Start to send Letters to XYZ Ltd.Used Communication channels • Repayment follow ups started through telephonic calls – not responding on telephonic calls • Start to send emails to XYZ Ltd. for nonpayment – not replied with any written communication .

• To declare NPA in L&T Finance Ltd. books • To register XYZ Ltd. name in defaulters list .Impact of Miscommunication • To initiate Legal action against XYZ Ltd.

Challenges • Good Past Track record of the customer since so many years • Without spoiling healthy relationship between XYZ Ltd. and organization to recover debts • To Choose the appropriate channel to communicate effectively • Depute responsible person to initiate recovery process .

Barriers to effective communication • To remove barriers to effective communication – Physical Barriers • Noise / Time and Distance – Semantic Barriers • Interpretation of words / Bypassed instructions / Denotations and connotations – Socio – Psychological Barriers • Attitudes and opinions / emotions / cultural diversity /closed mind / Frame of reference / status – consciousness / inattentiveness – – – – – Closed words Perceptions Poor listening Inferring Credibility gap .

Effective communication • Channel selected as Face-to-Face Communication • Arranged business meeting with customer(promoter) at his place • Deputed responsible person to initiate recovery process • Collection and preparation of data for meeting .

Cont…. • Understood the actual problem caused for non payment of dues • Appreciated customer past track record and performance • Assured about future business and commitment • Conveyed message to customer against strict action for NPA account as per our organization policy .

• Alternate suggestions provided to customer during meeting: – To route the payments directly from other sources to clear our dues. – Also provided the part payment facility to customer • Requested the customer to clear the dues • Resulting with face to face communication. customer has given in writing to clear all over dues within stipulated time and also collected post dated cheque’s as per payment schedule .Cont….

Way forward .Establish policy • Established the new policy regarding NPA accounts to arrange business meeting with customer before taking any strict action • Inform the customer to route the payment directly to us from other business sources • Get periodic confirmation of over dues from customer • Arrange quarterly conference for discussing customers issues .