A SUMMER PROJECT

ON
Employee Satisfaction

Submitted by: Ayushi Gupta

Roll Number- 1720103047

Submission towards partial fulfilment for the Degree of Master of Business Administration
Session 2017-19

External Guide Internal Guide

Mr. Ratnesh Shrivastav Mr. Abhinav Nath
Zonal HR Head Assistant Professor
HDB Financial Services, Lucknow

INVERTIS UNIVERSITY, BAREILLY, U.P.

August 2018
 ACKNOWLEDGEMENT

This is to acknowledge with sincere thanks to all those people who have been associated with this
project, for their assistance, guidance & support that I have received during the Summer Internship.
I place on record my deep sense of gratitude to the management of HDB Financial Services for giving
me an opportunity to pursue my summer internship

My heartfelt thanks & gratitude to my mentor Mr. Ratnesh Srivastav for his constant advice &
support.I must also thank Mr. Ujjawal Prakash, who was of major help for his valuable support.

I extend my thanks to the various employees of the organization for their valuable time which they
gave for the questionnaire & their responses.

I wish to make a special mention of Dr. Shaileshwar Ghosh, HOD MBA & Mr. Abhinav Nath for
their deep involvement & continuous guidance in making this project a fruitful one.

Ayushi Gupta
 BONAFIDE CERTIFICATE

This is to certify that Ms. Ayushi Gupta, a student of INVERTIS UNIVERSITY, pursuing MBA, has
successfully completed Summer Internship at HFDB Financial Services from June 7, 2017-August 7,
2017. As part of her curriculum, the report entitled, “Employee Satisfaction”, submitted by the student
to the undersigned is an authentic record of her original work, which she has carried out under my
supervision and guidance.

I wish her all the best.

Mr. Ratnesh Shrivastav

Zonal HR Head
HDB Financial Services, Lucknow
 EXECUTIVE SUMMARY

A study on “Job Satisfaction of Employees” was carried out in HDB Financial Services, with an
objective to find the satisfaction level of the employees in the organization.

The study was done as part of Descriptive Research & convenience sampling technique was employed
for selecting the sample. The primary data was collected by the means of questionnaire. The secondary
data was collected through company’s website. A structured questionnaire was provided to fifty
employees & the data was collected based on the same. The data was analyzed using percentage
method. Utmost care has been taken from the beginning of the preparation of the questionnaire till
analysis, findings & suggestions. The analysis leads to the conclusion

Suggestions are also given to the company for the better prospects.
 TABLE OF CONTENT

SR.NO TITLE PG.NO

1 INTRODUCTION 7
 OBJECTIVE
 RESEARCH METHODOLOGY

2 INDUSTRY ANALYSIS 8
 DESCRIPTION
 TYPES
 INDUSTRY TRENDS
 SIZE & GROWTH
 COMPETITVE ATTRACTIVENSS
3 COMPANY PROFILE 13
 ABOUT COMPANY
 PRODUCTS
 COMPETITORS
 ORGANIZATIONAL STRUCTURE
 SWOT ANALYSIS
 PEST ANALYSIS
4 FUNCTIONAL AREAS 20
 HR
 RECRUITMENT & SELECTION
 TRAINING & DEVELOPMENT
 JOB SATISFACTION
5 KEY FINDINGS 26

6 APPENDICES 27

7 REFRENCES 30
 LIST OF TABLES

SR. Table Name Page No.

NO.

1 SWOT Analysis 18

2 PESTLE Analysis 19

LIST OF FIGURES

SR. NO. FIGURES Page No.

1 Types of NBFCs 9

2 Industry size 10

3 Industry Growth 10

4 Industry loan size 11

5 Products 15

6 Organizational Structure 17

7 Factors of Job satisfaction 23

9 Maslow’s need Hierarchy 25

LIST OF SYMBOLS AND ABBREVIATIONS

SR. NO. SYMBOLS & ABBREVIATIONS Meaning/ Full Form

1 P2P Peer to peer

2 EMI Equated Monthly Installment

3 BPO Business Process Outsourcing

4 CSR Corporate Social Responsibility

 1. INTRODUCTION

Job satisfaction describes how content an individual is with his or her job. It is the result of
various attitudes possessed by an employee. In a narrow sense, these attitudes are related to the
job under conditions with some specific factors such as compensation, supervision, content of
work, personal factors & other organizational factors.

Job satisfaction is an important indicator of how employees feel about their job & a predictor of
work behaviour. It gives clear evidence that dissatisfied employees skip work more often & more
like to leave the job & satisfied worker likely to work longer with the organization. It leads to
higher productivity, irrespective of job title & pay employees who report high job satisfaction
tend to achieve higher productivity. When employees feel the company has their best interest at
heart, they often work with loyalty for the company. By keeping employees safe & satisfied, it
helps in lowering the cost of recruiting again & counselling.

1.2 Objective of the study-

 To measure the satisfaction levels of employees on various factors & give suggestions for
improving the same.
 To study the relationship between the personal factors of the employee with satisfaction
level.
 To study the various factors which influence the level of employee satisfaction

1.3 Research Methodology-

 Research Design- The research design used for this study is of the descriptive type.
Descriptive studies are those studies which are concerned with describing the
characteristics of a particular individual or group.
 Population- The population of this research is the employees of the HDB Financial
Services.
 Sample Size- In this research only few items can be selected to form the sample for our
study. Here out sample size of 50 employees is taken.
 Data collection-
Data source: Primary & Secondary
Research Approach: Survey Method
Research Instrument: Questionnaire
 2. INDUSTRY ANALYSIS
2.1 Description

A Non Banking Financial Company (NBFC) is a company registered under the Companies Act,
1956 of India. Engaged in the business of loans and advances, acquisition of shares /stocks
/bonds/debentures /securities issued by Government or local authority or other marketable
securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not
include any institution whose principal business is that of agriculture activity, industrial activity,
purchase or sale of any goods (other than securities) or providing any services and
sale/purchase/construction of immovable property. A non-banking institution which is a
company and has principal business of receiving deposits under any scheme or arrangement in
one lump sum or in instalments by way of contributions or in any other manner, is also a non-
banking financial company (Residuary non-banking company )

NBFCs lend & make investments & hence their activities are alike to that of banks, however the
difference lies in that:
 NBFC cannot accept demand deposits
 NBFCs do not form part of the payment & settlement system & cannot issue cheques
drawn on it.
 NBFCs cannot issue demand draft like banks.

Now question arises that what is the need of NBFCs when we already have banks?
1. First & foremost is the size of the EMI, which boils down to interest rates. Based on the
income, credit scoring & repayment rate of interest is charged on the borrowers however
it is at competitive rates. With all other benefits when rate of interest is also lowered,
borrowers found this more easy & affordable.

2. Less rules & regulations are there as stringent to banks; this helps borrowers to get loans
easily.
2.2 Types of NBFCs

Fig. 1

2.3 Industry Trends

NBFCs have undergone significant transformation over the past few years which have given a
boost to innovation, growth & investment in the financial sector. These include:-
 Regulatory changes- Government liberalised 100% FDI in the sector. Further, the
benefit of the Securitisation and Recognition of Financial Assets & Enforcement of
Security Interest Act 2002 was extended.
 Operational innovation-Newer business models such as Account Aggregators
(collecting & providing customer’s financial assets) & P2P Lending (Crowd funding
which uses online platform to match lenders with borrowers to provide unsecured loans).

 Increased market activity with more registrations, approvals and listings

In 2016, RBI introduced a fast track registration process and two categories of
applications depending on acceptance of public funds and customer interface. This fast
track process increased activity in the sector in the form of registration of new NBFCs.
Additionally, the number of approvals granted for foreign investment in investing
companies and the number of NBFC listings with the stock exchanges have also
increased substantially.
 2.4 Industry Growth & Size

Although there are strict norms & criteria of Net Owned Funds, NBFCs continued to
build on the strong momentum during the past years.

Fig. 2

NBFCs have not only seen an increase in their business but also managed to keep asset quality
stable, unlike their banking peers. The risk ratio has reduced from the past years.

Fig. 3
Loan market size has increased at a phase of 12.7% as compared to previous years.

Fig. 4

2.6 Competitive position

The position of competition in the industry mostly determines the kind of business strategy used.
The profit potential of the industry is determined by the competition interaction. The porter
model is based on the assumption that the strategy of the organization should meet the
opportunities & deal with the threats present in the external environment of the organization.
Porter has identified the five forces that are the pillars of every industry & market. These forces
determine the attractiveness, profitability & intensity of competition of an industry. With the
help of porter model analysis organization should decide whether to exploit or influence the
particular characteristic of their industry. There should be an objective of every organization to
improve its position by making changes in these forces.

Porter’s 5 force model

Barriers to entry
 Product differentiation is very difficult as most of the NBFCs offer similar type of loans
which caters the same market.
 Licensing requirement is low as there are already 13000 registered NBFCs.

Threat of substitute
 Banks are the important substitute as they are the leaders in the market. They have a quite
strong presence in the market & have more people faith with them.
 Money lenders dominate in the rural market & they mostly tap in the unorganized
market.
Bargaining power of suppliers
 Many alternatives- The suppliers in this case are the depositors or the NBFCs funds.
Suppliers have lots of alternatives to put their money; with the risk they can invest their
money. E.g. Low risks: bonds, banks etc. High risks: stocks, Investment.
Bargaining power of consumer
 Low switching costs
 Large number of alternatives
 Large number of NBFCs
 High market growth rate
 Low switching cost
 High exit barriers
 Undifferentiated services
 Full information about the market

Rivalry among competitors

There is very fierce in Indian NBFCs. The services NBFCs offer is more of homogenous which
makes the company to offer the same services at a lower rate & eat their competitor market’s
share. Market players use all sort of aggressive selling strategies. Hence the intensity of rivalry
is very high.
 3. COMPANY PROFILE

3.1 HDB Financial Services

HDB Financial Services is a leading NBFC, incorporated in 2008. It is a subsidiary company of

HDFC Bank Limited (Housing Development Finance Corporation). It is engaged in retail asset
financing. It is a non deposit taking non bank finance company. Apart from lending to
individuals, the company grants loan to micro, small and medium business enterprises. It also
runs BPO services to deliver back office & front office services such as forms processing,
correspondence management, outbound marketing & collection services etc. The company is
promoted by the HDFC Bank Ltd. which has 97.42% shareholding in the company.

HDB Financial Services provides financing, collecting & insurance services in India. The
company operates through Lending Business & BPO service segments. It offers unsecured
loans, including loan against property, gold, securities, commercial vehicles & personal loan etc,
as well as end to end collection services through BPOs. The company is registered insurance
corporate agent having license from Insurance Regulatory & Development Authority (IRDA).
The company securitize & have tie-up for life & general insurance products of HDFC Standard
Life Insurance Company limited & HDFC Ergo General Insurance Company limited
respectively.

The company offers end to end collection services in over 400 locations through its calling &
field support systems. The company has taken various steps to improve the effectiveness of its
service delivery & drive consistency of customer experience across its delivery channels. To
ensure prompt redressed of customer grievance, the company has put in place a grievance
redressed process. A customer service committee chaired by Managing Director undertakes
monthly review of all complaints.
B
To strengthen its internal process the company implemented a quality management system in its
centralized operations at Hyderabad & Chennai. A strong well capitalized business, it enjoys
CARE AAA rating for long term debt facility & PR 1+rating for short term debt. It is a strong,
stable & well capitalized NBFC.
Board of directors
Mr. Aditya Puri - Chairman & non- executive chairman
Mr. Bhavesh Zaveri - Non-executive director
Mr. Jimmy Tata - Non-Executive Director
Ms. Smita Affinwala - Independent Director
Mr. Venkatraman Srinivasan- Independent Director
Mr. Ramesh G. - Managing Director & Chief Executive Director

Vision
To be India’s most admired NBFC; through great execution, Drive Simplicity & developing
humility.

Mission
To deliver innovative products & services to cater to the growing needs of an Aspirational India
serving both Retail & commercial clients

Values
HDB maintains a strong commitment to ethical conduct. Transparency is ingrained in the
structure of our code of ethics & compliance polices to ensure that the highest standards of
professional conduct are consistently reinforced & embedded in every corner of the organization.

CSR
HDB is committed to identifying & supporting programs aimed at
 Developing & advancing the community & in particular those at the bottom of the
pyramid who are unequally endowed/enabled & also
 Reducing negative impact of its operations on environment
HDB financial Services, CSR mission is to contribute to the social and economic development of
the community through a series of interventions. We seek to mainstream economically,
physically and socially challenged groups and to draw them into the cycle of growth,
development and empowerment. Our strategy is to integrate our activities in community
development, social responsibility and environmental responsibility and encourage each business
unit or function to include these considerations into its operations.
USP
All products under one umbrella.

3.2 Products

HDB offers a range of loans in the secured & unsecured space that fulfills all the financial needs
of its target segment.

LOANS

Unsecured Secured

Busin Loan Car

ess Person Home against loan/
al loan Constru Consu Shares/ Commer
loan loan/loa used
ction mer mutual cial Gold
n car/
Equipm Durabl fund/ES Vehicle loan
against
ent e Loan POs/bon Loan used car
propert
Loan ds/insur refiinanc
y
ance e

Fig. 5
3.3 Top Competitors
3.4 Organizational Structure

Operation HR
head

Regional
head

Zonal Head

Area Manager

Executive
3.5 SWOT Analysis (table 1)

Strengths  Brand image of its parent company HDFC

 Highly Competitive rates
 Better Sourcing as compared to competitors

Weakness  Declining conversion ratio in PL

 Turnover

Opportunities  Growth in number of entrepreneurs

 Urban businessmen are looking for financial aids to
increase & grow their

Threats  Strict economic measures by government & RBI

 Ever changing economic conditions
 Increasing Number of NBFCs in the country
3.6 PESTLE Analysis (table2)

Factors Observations
1. RBI Regulations-As NBFCs are emerging as major
competitors of banks, the RBI has made strict rules &
regulations to organize the sector.
Legal & Political Factors 2. Taxation Regulations-As a NBFCs the company fall
under service tax norms & mostly hire purchase & lease
financing companies are liable to pay service tax.
3. Schemes made by the ruling political parties like-
Credit Guarantee Scheme

1. Inflation- It affects the organization in the long run as

rise in inflation rate will affect the disposable income &
thus it will affect the savings & cost to raise fund.
2. Agriculture- More than 50% of farmers use loans to
purchase agriculture devices, mostly tractors are
Economic Factors purchased on instalment basis. So while considering
organization’s components such as hire purchase, lease
financing etc we can say that agriculture have direct
impact on the organization.
3. Industry- Mainly manufacturing & mining industries
are acquiring the equipment & machines on lease basis
or hire purchase. So the growth in industry will impact
the organization.
1. Due to industrialization more rural people are attracted
towards the urban area which has resulted into
emergence of a large middle class.
Social Factors 2. There is an increase in emerging entrepreneurs in the
country & company provide to loans to those whose
applications are denied by the banks, so providing
venture capital for new businessmen. This will again
generate employment opportunities & in turn create
additional customer segment.
3. Increase in the number of emerging NBFCs.
Technical factors 1. Telecommunication services- HDB has set up its own
BPO services to deliver back office & front office
services such as forms processing, correspondence
management, outbound marketing & collection services
etc.
2. Through internet it can shorten the process by providing
the needed information to its customers & clients. It has
its separate website through which its employees are
connected for their working.
 4. Human resource

Human resources (HR) is the company department charged with finding, screening, recruiting
and training job applicants, as well as administering employee-benefit programs. As companies
reorganize to gain competitive edge, human resources plays a key role in helping companies deal
with a fast-changing environment and the greater demand for quality employees.

Essential Functions of HR

Research conducted by The Conference Board has found six key people-related activities that
human resources must effectively do to add value to a company. These are:

1. Effectively managing and utilizing people.

2. Tying performance appraisal and compensation to competencies.

3. Developing competencies that enhance individual and organizational performance.

4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.

5. Applying new approaches to work process design, succession planning, career development
and inter organizational mobility.

6. Managing the implementation and integration of technology through improved staffing,

training and communication with employees.

4.2 RECRUITMENT

INTRODUCTION:
Recruitment forms the first in the process, which continues with selection and ceases with the
placement of the candidate. It is the next step in the procurement function, the first being the
manpower planning, Recruitment makes it possible to acquit the number and types of people
necessary to ensure the continued operation of the organization.” Recruitment is the discovering
of potential applicants for actual or anticipated organizational vacancies”. Recruitment has been
regarded as the most important function of personnel administration, because unless the right
type of people is hired, even the best plans, organization charts and control systems would not do
much good.
DEFINITION:
“Recruitment is a process to discover the sources of manpower to meet the requirement of the
staffing schedule and to employ effective measures for attracting that manpower in adequate
number to facilitate effective selection of an efficient working force”.
PURPOSES AND IMPORTANCE:
 Determine the present and future requirements
 Increase the pool of job candidates at minimum cost
 Reduce the probability of employee turn over
 Increase the success rate of the selection process
 Increase organizational and individual’s effectiveness

RECRUITMENT PROCESS:
 Planning
 Strategy development
 Searching
 Screening
 Evaluation and control

4.3 SELECTION

“Selection is the process of examining the applicants with regard to their suitability for the given
job or jobs, and choosing the best candidate and rejecting the other
Selection is the process of picking or choosing the right candidate, who is most suitable for a
vacant job position in organization. In other words, selection can also be explained as the process
of interviewing the candidates & evaluating their qualities, which are required for a specific job
& then choosing the suitable candidates find the position. The selection of a right applicant for a
vacant position will be an asset for the organization in reaching its objectives. A good selection
process will ensure that the organization gets the right set of employees with the right set of
attitude. The purpose of selection is to choose the most suitable candidate, who can meet the
requirements of the jobs in an organization, as the overall performance of the organization
depends on its employees.

SELECTION PROCESS
The organizations can make use of more than one source for carrying out the recruitment
procedure. Once the recruiting sources are identified, suitable candidates are called for the
selection process.

Steps of selection process

 Preliminary Screening
 Receiving applications
 Employment Test
 Interview
  Reference Checking
 Medical Examination
 Offer letter

4.4 TRAINING & DEVELOPMENT

Training & development is a subsystem of an organization which emphasize on the improvement
of the performance of individuals in the organization. Training is an educational process which
involves the sharpening of the skills, concepts, changing of attitude & gaining more knowledge
to enhance the performance of the employees. Training is about knowing where you are in
present & after some time where will you reach with your abilities. The motive behind giving
training is to create an impact that lasts beyond the end time of the training itself & employee
gets updated with the new phenomenon.

Its type mainly include:-

ON THE JOB TRAINING

 Job Rotation
 Coaching
 Job instruction
 Internship

OFF THE JOB TRAINING

 Case study
 Incident method
 In-basket method
 Lectures
 Simulation
 Conferences

According to Organizational Development Network website,”Organizational Development is a

process that, strives to build the capacity to achieve & sustain a new desired states that benefits
the organization.”
 4.5 JOB SATISFACTION

According to Vroom, “Job satisfaction is affective orientations of individual’s towards work

roles they are presently occupying.”

Job satisfaction occupies a central position in organizational research. It has been studied as an
independent, dependent, mediator, and moderator variable and has been found to be related to a
host of organizational and personal outcomes such as absenteeism, turnover, organizational
citizenship behaviours, organizational commitment, mood, life satisfaction.

Factors of Job Satisfaction

Sources of Job satisfaction

Organizational Work Environment Work Itself Personal Factors

Factors

Salaries & Wages Working Conditions Variety & Content Age

Reward & Supervision Autonomy Qualification

Gender
Recognition

Role Ambiguity &

Personality
Company policies Work Group Conflict
I.Q

Fig. 7
Theories of Employee Satisfaction-

1. Expectancy theory-
This theory emphasizes the needs for organizations to relate rewards directly to
performance & to ensure that the rewards provided are those rewards deserved & wanted
by the recipients. It is based on 3 concepts:-
Valence - Strength of an individual’s preference for a particular outcome.
Instrumentality – The degree to which a first level outcome lead to second level
outcome.
Expectancy – Probability that a particular action will lead to a particular first level
outcome.

2. Two factor theory-

It is also known as Herzberg’s Motivation- Hygiene theory. According to the theory there
are two separate set of factors which cause job satisfaction & dissatisfaction.

Motivators - Which give positive satisfaction arising from intrinsic condition of job such
as rewards, recognition, personal growth etc.

Hygiene Factors- They doesn’t cause satisfaction but their absence cause Dissatisfaction
such as work environment etc.

3. Discrepancy Theory-
The concept of discrepancy theory is to explain the ultimate source of anxiety &
dejection. An individual who has not fulfilled his responsibility feels the sense of
anxiety & regret for not performing well. According to this theory, all individuals will
learn what their obligations & responsibilities are for a particular function, & if they
fail to fulfil those obligations then they are punished. Over time these duties &
obligations consolidate to form an abstract set of principles, designated as a self
guide. Agitation, anxiety, Disappointment or dejection is the main response when an
individual fails to achieve the obligation, responsibility or reward. This theory also
explains that if achievement of the obligations is obtained then the reward can be
praise.
4. Hierarchy of needs-
According to Maslow, there is a hierarchy of needs which employees strive to
achieve. Satisfying these needs is important in order to avoid unpleasant
consequences, So that the employees give positive response to the organizations &
contribute to their maximum for the productivity of organization.
 5. Key Learning

 Each member has clear understanding of company’s values.

 Employees are extremely satisfied with the supervision of their bosses.

 Except some, all the employees are happy with the training & Development in the

organization.

 Reward & Appreciation system is good in the organization

 There is a cordial relationship among the employees.

 Effective Communication is there in the organization

 Most of the employees feel part of decision making.

 Employees are satisfied with the payment system & other benefits offered to them.

 According to the responses of the employees, what makes HDB as a best place to work

are- Organizational culture, Transparency, Clear credit policy, Its market reach &

delegation of work by specific team by portal.

 6. Appendices

Survey for Employee Job Satisfaction

Employee Name- Employee Code-

DOJ Branch Name

1. How likely you rate, your organization's work culture?

2. Do you have clear understanding of company's values?

Yes

No

3. You are extremely satisfied with the supervision you get in the organization

Satisfied

Dissatisfied

Neutral

4. Do you feel connected to your co-workers?

Yes

No
5. Does your organization offer adequate opportunities for training & Development?

Yes

No

6. You get appreciation for your work

Agree

Disagree

7. Your satisfaction level regarding your job security in the organisation?

Satisfied

Dissatisfies

Neutral

8. Do you find your work interesting & challenging?

Yes

No

9. Does employee workplace issues are addressed in a manner that quickly & fairly

resolve them?

Yes

No

10. Do you have fun working here?

Yes

No
11. Do you feel that remuneration provided to you justifies your work?

Yes

No

12. What other issues not included in this survey need to be addressed in this
organization?

13. What according to you make HDB Financial Services a best work place?

14. Do you recommend the company to others as a great place to work?

Yes

No
15. References

https://www.hdbfs.com/
http://vinodkothari.com/blog/performance-of-nbfcs-in-2016-17/
https://en.wikipedia.org/wiki/Job_satisfaction