A

SYNOPSIS ON

“Organizational Behavior Towards HDFC Bank”

Submitted in the partial fulfillment of the requirement for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

Of

PUNJAB TECHNICAL UNIVERSITY

JALANDHAR

Submitted

By

Sanjana Rani

Roll No.:1174443

Under the guidance of

Mrs Manjeet Kaur

Company profile

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The

bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered

office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 1995.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian

Bank". They realised that only a single-minded focus on product quality and service excellence

would help them get there. Today, they are proud to say that they are well on our way towards

that goal.

It is extremely gratifying that their efforts towards providing customer convenience have been

appreciated both nationally and internationally.

HDFC bank has been showered with a number of awards, consisting of The Best Employer

Award in 2007-2008.

Introduction to Organizational Behavior:

Organizational studies, organizational behavior, and organizational theory is the systematic study

and careful application of knowledge about how people - as individuals and as groups - act

within organization.

Organizational studies encompass the study of organizations from multiple viewpoints, methods,

and levels of analysis.

Whenever people interact in organizations, many factors come into play. Modern organizational

studies attempt to understand and model these factors. Like all modernist social sciences,

organizational studies seek to control, predict and explain.

Organizational behavior is currently a growing field. Organizational studies departments

generally form part of business schools, although many universities also have industrial

psychology and industrial economics programs.

The field is highly influential in the business world with practitioners like Peter Ducker and Peter

Senge, who turned the academic research into business practices. Organizational behavior is

becoming more important in the global economy as people with diverse backgrounds and cultural

values have to work together effectively and efficiently. It is also under increasing criticism as a

field for its ethnocentric and pro-capitalist assumptions

During last 20 years organizational behavior study and practice has developed and expanded

through creating integrations with other domains:

Anthropology became an interesting prism to understanding firms as communities, by

introducing concepts like Organizational culture, 'organizational rituals' and 'symbolic

acts' enabling new ways to understand organizations as communities.

Leadership Understanding the crucial role of leadership at various level of an

organization in the process of change management.

Ethics and their importance as pillars of any vision and one of the most important driving

forces in an organization.

Organizational Culture:

Organizational culture is a concept in the field of Organizational studies and management which

describes the attitudes, experiences, beliefs and values of an organization. It has been defined as

"the specific collection of values and norms that are shared by people and groups in an

organization and that control the way they interact with each other and with stakeholders outside

the organization

Strong culture is said to exist where staff respond to stimulus because of their alignment to

organizational values.

Conversely, there is weak culture where there is little alignment with organizational values and

control must be exercised through extensive procedures and bureaucracy.

Organizational Effectiveness:

Organizational effectiveness is the concept of how effective an organization is in achieving the

outcomes the organization intends to produce. The idea of organizational effectiveness is

especially important for non-profit organizations as most people who donate money to non-profit

organizations and charities are interested in knowing whether the organization is effective in

accomplishing its goals.

An organization's effectiveness is also dependent on its communicative competence and ethics.

The relationship between these three is simultaneous. Ethics is a foundation found within

organizational effectiveness. An organization must exemplify respect, honesty, integrity and

equity to allow communicative competence with the participating members. Along with ethics

and communicative competence, members in that particular group can finally achieve their

intended goals. Organizational effectiveness is an abstract concept and is basically impossible to

measure. Instead of measuring organizational effectiveness, the organization determines proxy

measures which will be used to represent effectiveness. Proxy measures used may include such

things as number of people served, types and sizes of population segments served, and the

demand within those segments for the services the organization supplies.

For instance, a non-profit organization which supplies meals to house bound people may collect

statistics such as the number of meals cooked and served, the number of volunteers delivering

meals, the turnover and retention rates of volunteers, the demographics of the people served, the

turnover and retention of consumers, the number of requests for meals turned down due to lack

of capacity (amount of food, capacity of meal preparation facilities, and number of delivery

volunteers), and amount of wastage. Since the organization has as its goal the preparation of

meals and the delivery of those meals to house bound people, it measures its organizational

effectiveness by trying to determine what actual activities the people in the organization do in

order to generate the outcomes the organization wants to create.

Employee Engagement:

Employee engagement is a concept that is generally viewed as managing discretionary effort, that

is, when employees have choices, they will act in a way that furthers their organization's

interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his

or her work.

Engaged employees care about the future of the company and are willing to invest the

discretionary effort. Engaged employees feel a strong emotional bond to the organization that

employs them.

Factors affecting the employee engagement:

Employee perceptions of job importance.

Employee clarity of job expectations. "If expectations are not clear and basic materials

and equipment not provided, negative emotions such as boredom or resentment may

result, and the employee may then become focused on surviving more than thinking about

how he can help the organization succeed."

Career advancement/improvement opportunities. "Plant supervisors and managers

indicated that many plant improvements were being made outside the suggestion system,

where employees initiated changes in order to reap the bonuses generated by the

subsequent cost savings."

Regular feedback and dialogue with superiors. "Feedback is the key to giving employees

a sense of where they’re going, but many organizations are remarkably bad at giving it.

"'What I really wanted to hear was 'Thanks. You did a good job.' But all my boss did was

hand me a check.'

Quality of working relationships with peers, superiors, and subordinates. "...if employees'

relationship with their managers is fractured, then no amount of perks will persuade the

employees to perform at top levels. Employee engagement is a direct reflection of how

employees feel about their relationship with the boss."

Perceptions of the ethos and values of the organization.

Effective Internal Employee Communications - which convey a clear description of

"what's going on". "'If you accept that employees want to be involved in what they are

doing then this trend is clear (from small businesses to large global organizations). The

effect of poor internal communications is seen as its most destructive in global

organizations which suffer from employee annexation - where the head office in one

country is buoyant (since they are closest to the action, know what is going on, and are

heavily engaged) but its annexes (who are furthest away from the action and know little

about what is happening) are disengaged.

OBJECTIVES OF THE STUDY

To analyze the organizational culture in HDFC Bank

To analyze the employee engagement in HDFC Bank

To analyze organizational effectiveness in HDFC Bank.

Review of litrature

Keyton,(2005):Organisations exist as ordered and purposeful collections of people drawn

together to produce an outcome; that is, to achieve the organisation’s goals . This outcome may

be a service, a product or to provide an accumulation of wealth, whether the outcomes may

benefit an individual, a group of people (shareholders or stakeholders) or a community. In

order to achieve their goals organisations develop specific structures that determine task

allocation, reporting lines, and formal coordination mechanisms and interaction patterns

(Robbins 1990, cited in Holzhausen, 2002).

An organisation at its foundation brings with it the values and behaviours of its founders

and these become the organisation’s cultural effects or elements. As the organisation

progresses or develops  through time these elements become embedded into the

organisation property, shaping core values, defining assets acquired and the organisation’s

distinctive persona that defines its intentions, priorities, routines and sense-making

activities (Weick, 1995, cited in Francis, Bessant, and Hobday, 2003).

Sanchez (2004):The culture of an organisation dictates how that organisation operates in its

environment and how it is to achieve ongoing success (Sanchez 2004). An understanding of

organisational culture is fundamental to understanding organisational behaviour and the role

employee engagement has on that culture and visa versa.

Each organisation has its own unique organisational culture. Often this culture has been

developed by the organisation’s founder management; however it may be changed and affected

by the behaviour of groups and individuals, as well as external forces.  Organisational culture is

seen by academics and practitioners alike as being fundamental in how the organisation meets its

missions and its effectiveness as a business (Trompenaars, 2006) 

Organisational effectiveness, Watson (1986) suggests, is defined in terms of an organisation’s

ability to ensure goal accomplishment, resource acquisition, satisfaction, identity and

commitment of its members; adaptation to change and satisfaction of external stakeholders.

Van der waldt 2003:Cameron & McCollum (1993) in researching communication and its

relationships to organisational culture concluded that organisations with “meaningful

interpersonal communication may achieve a better shared definition of the organisation and

hence a better communication environment” (p. 215). Van der Waldt (2003), suggests that

organisations are continually changing and that high quality internal and external communication

” can ease the pain” of change and ”enhance the effective management of the organisation”.

Cameron (1993) and Van der Waldt (2003) both endorse the concept that communication plays

an important role in organisational culture.

”When an organisation chooses to express itself – irrespective of the topic – it is telling its

internal and external constituencies something about its unique character and its aspirations. The

outgoing message reflects the culture of the organisation and also further reinforces or helps

change the very culture that is giving rise to the substance and style of the communication”

(Sanchez, 2004).

Pettinger 2000:Organisational culture is considered by Peters and Waterman, 1982 as cited in

Waterhouse (2003) as ”the best way to manage as a means of achieving excellence”, while

Pettinger (2000. p.186) suggests that it is “an essential feature of effective organisation creation

and performance” and is viewed as ”one of the macro approaches to management” (Lewis, 2001.

p.121).

This perspective of the importance of organisational culture appears to draw upon organisational

theories and behaviour from a range of sciences including, sociology, psychology, anthropology

(Robbins, Millett and Waters-Marsh (2004); Vecchio, Hearn and Southey, (1998); McShane &

Travaglione (2005) and Pettinger (2000).

Pettinger (2000, p.186) states the “organisational culture is an amalgam and summary of the

ways in which activities are conducted and standards and values adopted. It encompasses the

climate or atmosphere surrounding the organisation, prevailing attitudes within it, standards,

morale, strength of feelings towards it and general levels of goodwill present”. Many definitions

of organisational culture (Davidson, 2000; Sanchez, 2004) reflect the generalised core view

expressed by Schein, (2004. p.12) that organisational culture is “an enduring and embedded set

of basic assumptions and characteristics developed by the organization”, and that it is “shared

and valued by its members, in relation to how the organisation is and how it operates in order to

deal and cope with external adaptation and internal integration”. (Schein, 2004. p.17).

Research Methodology

Research methodology is a way to systematically solve the research problem. The research

methodology in the present study deals with research design, data collection methods, sampling

methods, survey, analysis and interpretation.

Research Design: A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research purpose with

economy in procedure.

A well structured questionnaire will be framed.

Data will be collected from the HDFC Bank.

Findings will be made and necessary suggestions and recommendations would be given.

Data Sources:There are two types of data collection namely primary data collection and

secondary data collection.

Primary Data: The primary data is defined as the data, which is collected for the first time

and fresh in nature, and happen to be original in character through field survey. Like

questionnaires.

Secondary Data: The secondary data are those which have already been collected by

someone else and have been passed through statistical process. The secondary data for this study

are already available in the firm's internal records, annual report, broaches, and company's

website.

Data collection method: The data collection method used in this research would be survey

method. Here the data will be systematically recorded from the respondents.

Research tool: A structured questionnaire will be prepared to get the relevant information from the

respondents. The questionnaire will consist of a variety of questions presented to the respondents for their

despondence.

Sample unit:sample unit would be employees of HDFC Bank.

Sample size: The sample size for this study will be 50.

Sampling Technique: For the purpose of research convenient sampling technique will be

used as employees of different departments were selected according to convenience.

REFERENCES

http://www.google.co.in/search?

hl=en&q=employee+blogs+on+hdfc+bank&meta

http://www.cuil.com/

http://www.wikipedia.org/

www.blackle.com

Organizational Behavior Textbook