Chapter 1

Introduction
Human resources is a term used to describe the individuals who make
up the workforce of an organization, although it is also applied in labour
economics to, for example, business sectors or even whole nations.
Human resources is also the name of the function within an organization
charged with the overall responsibility for implementing strategies and
policies relating to the management of individuals (i.e. the human
resources). This function title is often abbreviated to the initials "HR".

Human resources is a relatively modern management term, coined as

early as the 1960s - when humanity took a shift as human rights came to
a brighter light during the Vietnam Era. The origins of the function arose
in organizations that introduced 'welfare management' practices and also
in those that adopted the principles of 'scientific management'. From
these terms emerged a largely administrative management activity,
coordinating a range of worker related processes and becoming known,
in time, as the 'personnel function'. Human resources progressively
became the more usual name for this function, in the first instance in the
United States as well as multinational or international corporations,
reflecting the adoption of a more quantitative as well as strategic
approach to workforce management, demanded by corporate
management to gain a competitive advantage, utilizing limited skilled and
highly skilled workers.

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Human resources purpose and role

In simple terms, an organization's human resource management

strategy should maximize return on investment in the organization's
human capital and minimize financial risk.

Human resource managers seek to achieve this by aligning the supply of

skilled and qualified individuals and the capabilities of the current
workforce, with the organizations on going and future business plans and
requirements to maximize return on investment and secure future
survival and success.

In ensuring such objectives are achieved, the human resource function is

to implement an organization's human resource requirements effectively,
taking into account federal, state and local labour laws and regulations;
ethical business practices; and net cost, in a manner that maximizes, as
far as possible, employee motivation, commitment and productivity.

Key functions

Human Resources may set strategies and develop policies, standards,

systems, and processes that implement these strategies in a whole
range of areas. The following are typical of a wide range of
organizations:

 Maintaining awareness of and compliance with local, state and

federal labour laws (Department of Labour federal labour law
information)
 Recruitment, selection, and on boarding (resourcing)
 Employee recordkeeping and confidentiality
 Organizational design and development
 Business transformation and change management
 Performance, conduct and behaviour management
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  Industrial and employee relations
 Human resources (workforce) analysis and workforce personnel
data management
 Compensation and employee benefit management
 Training and development (learning management)
 Employee motivation and morale-building (employee retention and
loyalty)

Implementation of such policies, processes or standards may be directly

managed by the HR function itself, or the function may indirectly
supervise the implementation of such activities by managers, other
business functions or via third-party external partner organizations.
Applicable legal issues, such as the potential for disparate
treatment and disparate impact, are also extremely important to HR
managers.

For the Human Resources department, HR motivation is a key goal and

consideration when working with employees. Motivation, of course, in
this sense, refers to giving employees good reasons to perform well and
stick to their tasks within the organization. Thus, employee motivation is
a major factor in getting things done in the workplace and improving
overall organizational performance. Intuitively, we know that a motivated
group of people will not only get more work done, but would also be
happier and more driven than an unmotivated group. This is why human
resources have come up with many different ways to motivate
employees to, for instance, arrive on time or meet predetermined quotas.

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One approach might be to rely on employees' own, inherent motivation
to perform well at their jobs. While this may work for a select few eager
beavers, this is a rather unreliable approach in general. Different people
would have different self-motivation levels, and leaving them to rely on
these would not work in every case. Some people would be able to do
good work with minimal supervision and external motivation, but some
others would really benefit from some motivation from HR.

While it would seem that analysts have their jobs cut out for them in
trying to fit different motivation approaches to different individuals, in
practice, such complications are unnecessary. People do respond to the
same stimuli, albeit in varying degrees. Pay bonuses, freebies, and other
incentives have proven to work well and are thus, in effect, in many
organizations. Productivity really does increase when employees think
that they have something to gain by doing better than normal. The
rewards should be well thought out such that greater performance is
rewarded with equally greater bonuses. A good tip would be to make it
more "cost-effective" to employees to really go for higher performance,
making bonuses increase more quickly as performance rises.

Disincentives could also be effective, if they are tailored to the specific

offenses. That is, if the punishment makes sense given the infraction,
then they would work in dissuading employees from unwanted
behaviour. HR departments must be careful not to make punishments
overly harsh, as this could have the unwanted effect of making HR
unpopular or even hated. By finding a good balance between severity of
punishments and the desired effects, however, disincentives can be
used well.

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A relatively common mistake that many human resource departments
make is to not apply these incentive and disincentive schemes
universally and transparently. That is, everyone should be clear about
how incentives and disincentives are earned and given out. Everyone
should know exactly what they need to do to get bonuses, and what they
need not to do to avoid punishment. Sometimes, HR focuses on the low
performers and unmotivated people, to the exclusion of those who are
already performing well. Such an approach inevitably leads to
resentment, as those who are doing good work feel that they are not
being rewarded enough. This is why it is important in HR motivation to
ensure that the same set of rewards and punishments are enforced
across the board.

What Employees Want From Work - Employee Motivation

Every person has different reasons for working. The reasons for working
are as individual as the person. But, we all work because we obtain
something that we need from work. The something obtained from work
impacts morale, employee motivation, and the quality of life. To create
positive employee motivation, treat employees as if they matter -
because employees matter. These ideas will help you fulfil what people
want from work and create employee motivation.

Seven Opportunities to Influence Employee Motivation

Recommended are the actions that employees say, in a recent Society

for Human Resources Management (SHRM) survey, are important to
their job satisfaction. Management actions in these areas will create a
work environment conducive to employee motivation.

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Additionally, in determining the areas in which to provide employee
motivation tips, here are key ideas from readers about how to increase
employee motivation and employee job satisfaction.
Four of the five most important considerations in employee motivation:
job security, benefits (especially health care) with the importance of
retirement benefits rising with age of the employee, compensation/pay,
and safety in the work environment are discussed in an article that
addresses issues that are company-wide and rarely in the hands of an
individual manager or supervisor.

Specific Actions to Increase Employee Motivation

These are seven consequential ways in which a manager or supervisor

can create a work environment that will foster and influence increases in
employee motivation - quickly.

Communicate responsibly and effectively any information

employees need to perform their jobs most effectively. Employees
want to be members of the in-crowd, people who know what is
happening at work as soon as other employees know. They want the
information necessary to do their jobs. They need enough information so
that they make good decisions about their work.

• Meet with employees following management staff meetings to

update them about any company information that may impact their
work. Changing due dates, customer feedback, and product
improvements, training opportunities, and updates on new
departmental reporting or interaction structures are all important to
employees. Communicate more than you think is necessary.

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 • Stop by the work area of employees who are particularly affected
by a change to communicate more. The HR should make sure the
employee is clear about what the change means for their job,
goals, time allocation, and decisions.

• The HR should communicate daily with every employee who

reports to him. Even a pleasant “good morning” enables the
employee to engage with the HR manager.

• The HR should hold a weekly one-on-one meeting with each

employee who reports to him/her. They like to know that they will
have this time every week. Encourage employees to come
prepared with questions, requests for support, troubleshooting
ideas for their work, and information that will keep them from being
blindsided or disappointed by a failure to produce on schedule or
as committed.

Employees find interaction and communication with and attention

from senior and executive managers motivational.

In a recent study by Towers Perrin (now Towers Watson), the Global

Workforce Study which included nearly 90,000 workers from 18
countries, the role of senior managers in attracting employee
discretionary effort exceeded that of immediate supervisors.

• Communicate openly, honestly and frequently. Hold whole staffs

meetings periodically, attend department meetings regularly, and
communicate by wandering around work areas engaging staff and
demonstrating interest in their work.

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 • Implement an open door policy for staff members to talk, share
ideas, and discuss concerns. Make sure that managers
understand the problems that they can and should solve will be
directed back to them, but it is the executive’s job to listen.

• HR should congratulate staff on life events such as new babies,

inquire about vacation trips, and ask about how both personal and
company events turned out. Care enough to stay tuned into these
kinds of employee life events and activities.

An HR should provide the opportunity for employees to develop

their skills and abilities.

Employees want to continue to develop their knowledge and skills.

Employees do not want jobs that they perceive as no-brain drudge work.

• She/he should allow staff members to attend important meetings,

meetings that cross functional areas, and that the supervisor
normally attends.

• An HR should bring staff to interesting, unusual events, activities,

and meetings. It’s quite a learning experience for a staff person to
attend an executive meeting with him or represent the department
in his/her absence.

• He/she should ensure the employee has several goals that he or

she wants to pursue as part of every quarter’s performance

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 development plan (PDP). Personal development goals belong in
the same plan.

• Reassign responsibilities that the employee does not like or that

are routine. Newer staff, interns, and contract employees may find
the work challenging and rewarding. Or, at least, all employees
have their turn.
• Provide the opportunity for the employee to cross-train in other
roles and responsibilities. Assign backup responsibilities for tasks,
functions, and projects.

Employees gain a lot of motivation from the nature of and the work
itself.

Employees seek autonomy and independence in decision making and in

how they approach accomplishing their work and job.

• The HR should provide more authority for the employee to self-

manage and make decisions. Within the clear framework of the
PDP and on-going effective communication, delegate decision
making after defining limits, boundaries, and critical points at which
HR want to receive feedback.

• HR should expand the job to include new, higher level

responsibilities. Assign responsibilities to the employee that will
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 help him or her grow their skills and knowledge. Stretching
assignments develop staff capabilities and increase their ability to
contribute at work. (Remove some of the time-consuming, less
desirable job components at the same time, so the employee does
not feel that what was delegated was “more” work.)

• Provide the employee a voice in higher level meetings; provide

more access to important and desirable meetings and projects.

• Provide more information by including the employee on specific

mailing lists, in company briefings, and in your confidence.

• Provide more opportunity for the employee to impact department

or company goals, priorities, and measurements.

• Assign the employee to head up projects or teams. Assign

reporting staff members to his or her leadership on projects or
teams or under his or her direct supervision.

• Enable the employee to spend more time with his or her boss.
Most employees find this attention rewarding.

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Elicit and address employee concerns and complaints before they
make an employee or workplace dysfunctional. Listening to
employee complaints and keeping the employee informed about how the
HR is addressing the complaint is critical to produce a motivating work
environment. (These are employee complaints that readers identify as
regularly occurring in their workplaces.)

Even if the complaint cannot be resolved to the employee’s satisfaction,

the fact that the HR addressed the complaint and provided feedback
about the consideration of and resolution of the complaint to the
employee is appreciated. The importance of the feedback loop in
addressing employee concerns cannot be overemphasized.

• The HR should keep his door open and encourage employees to

come to him with legitimate concerns and questions.

• He should always address and provide feedback to the employee

about the status of their expressed concern. The concern or
complaint cannot disappear into a dark hole forever. Nothing
causes more consternation for an employee than feeling that their
legitimate concern went unaddressed.

Recognition of employee performance is high on the list of

employee needs for motivation. Many supervisors equate reward and
recognition with monetary gifts. While employees appreciate money,
they also appreciate praise, a verbal or written thank you, out-of-the-
ordinary job content opportunities, and attention from their supervisor.

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 • Writing a thank you note that praises and thanks an employee for a
specific contribution in as much detail as possible to reinforce and
communicate to the employee the behaviour the HR want to
continue to see.
• Verbally praising and recognizing an employee for a contribution.
Visiting the employee in his or her work space.

• Giving the employee a small token of gratitude. A card, their

favourite candy bar, a cutting from a plant in your office, fruit for the
whole office, and more, based on the traditions and interaction in
the office, will make an employee’s day.

Employees appreciate a responsive and involved relationship with

their immediate supervisor.

• Should avoid cancelling regular meetings, and if HR must, stop by

the employee’s work area to apologize, offer the reason, and
immediately reschedule. Regularly missing an employee meeting
send a powerful message of disrespect.

• Should talk daily with each employee who reports to him/her. The
daily interaction builds the relationship and will stand for a lot when
times are troubled, disappointments occur, or HR needs to address
employee performance improvement.

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• The interaction of an employee with his or her immediate
supervisor is the most significant factor in an employee's
satisfaction with work. Practice just listening. Encourage the
employee who brings you an idea or improvement. Even if HR
thinks the idea won't work, that the idea has been unsuccessfully
tried in the past, or he/she believes your executive leadership won't
support it, this is not what the employee wants to hear from the
supervisor.

And, it's not in his/her’s best interests for employee motivation to

put the kibosh on employee contributions and ideas. The HR will
tick them off, deflate them, and make their thoughts insignificant.

Thinking creatively about how HR can explore the idea, support

the employee in his or her quest to try out the innovation, provide
time for experimentation, and more. Encouragement brings
payback in positive employee motivation.

• He/she should remember that the nonverbal communication

communicates more expressively than the words we use to convey
our honest response to employee thoughts, concerns, and
suggestions. HR should pay attention, ask questions to further
elicit information, and focus on understanding the employee's
communication. Lose our reactions: shrugged shoulders, rolling
eyes, or partial attention are insulting and degrading.

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 • The supervisor's relationship to reporting staff is the single most
important factor in employee retention. Stay on top of what our
staff needs and wants to provide a work environment for employee
motivation.

Employee motivation is a common interest from supervisors and

managers who are responsible to oversee the work of other employees.
We can increase our efforts to improve employee motivation. The big
seven actions and behaviours that we can make happen every day for
employee motivation were as shown. I think so, that if you pay constant
attention to these significant factors in employee motivation; you'll win
with motivated, excited, contributing employees. Can work get any better
than that for a manager or supervisor?

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Chapter 2
Company Profile

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a major Indian financial
services company based in India, incorporated in August 1994, after the

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Reserve allowed establishing private sector banks. The Bank was
promoted by the Housing Development Finance Corporation, a premier
housing finance company (set up in 1977) of India. HDFC Bank has
1,725 branches and over 4,232 ATMs, in 779 cities in India, and all
branches of the bank are linked on an online real-time basis. As of 30
September 2008 the bank had total assets of Rs.1006.82 billion. For the
fiscal year 2008-09, the bank has reported net profit of
2,244.9 crore (US$498.37 million), up 41% from the previous fiscal. Total
annual earnings of the bank increased by 58% reaching at
19,622.8 crore (US$4.36 billion) in 2008-09.

It is one of the Big Four banks of India, along with State Bank of
India, ICICI Bank and Punjab National Bank—its main competitors.

HDFC Bank Ltd.

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 Headquarters Mumbai, India

Key people Aditya Puri

Products Investment Banking

Commercial Banking
Retail Banking
Private Banking
Asset Management
Mortgages
Credit Cards

Revenue 20,266 crore (US$4.5

billion)(2010)

Operating 4,419 crore (US$981.02

income million)(2010)

Profit 3,032 crore (US$673.1

million)(2010)

Total assets US$ 53.670 billion (2010)

Total equity 21,158 crore (US$4.7

billion)(2010)

Employees 51,888 (2010)

Website HDFCBank.com

History

HDFC Bank was incorporated in 1994 by Housing Development Finance

Corporation Limited (HDFC), India's largest housing finance company. It
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was among the first companies to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector.
The Bank started operations as a scheduled commercial bank in January
1995 under the RBI's liberalisation policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group)
was merged with HDFC Bank Ltd., in 2000. This was the first merger of
two private banks in India. Shareholders of Times Bank received 1 share
of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total
branches to more than 1,000. The amalgamated bank emerged with a
base of about Rs. 1, 22,000 crore and net advances of about Rs.89, 000
crore. The balance sheet size of the combined entity is more than Rs. 1,
63,000 crore.

Business focus

HDFC Bank deals with three key business segments. - Wholesale

Banking Services, Retail Banking Services, Treasury. It has entered the
banking consortia of over 50 corporates for providing working capital
finance, trade services, corporate finance and merchant banking. It is
also providing sophisticated product structures in areas of foreign
exchange and derivatives, money markets and debt trading and equity
research.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corps to small & mid-

sized corporates and agro-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional

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services, cash management, etc. The bank is also a leading provider of
for it’s to corporate customers, mutual funds, stock exchange members
and banks.

Retail banking services

The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking. HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (VISA Electron) and
issues the MasterCard Maestro debit card as well. The Bank launched
its credit card business in late 2001. By March 2009, the bank had a total
card base (debit and credit cards) of over 13 million. The Bank is also
one of the leading players in the “merchant acquiring” business with over
70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance
at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. These services are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank
is required to hold 25% of its deposits in government securities. The

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Treasury business is responsible for managing the returns and market
risk on this investment portfolio. This is all about HDFC.

Distribution network

An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has a network of

1725 branches spread in 780 cities across India. All branches are linked
on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank has a presence in all
major industrial and commercial centres across the country. Being a
clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centres where the NSE/BSE has a strong and active
member base.

The Bank also has 5,016 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic
and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus
and American Express Credit/Charge cardholders.

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