CHAPTER I

Need for the Study Scope of the Study Objectives of the Study Research Methodology Selection of the Sample Size Data Collection Statistical Tools Used Limitations of the Study Managerial Usefulness of the Study

1.1 Need for the Study

Employee training is a specialized function and is one of the fundamental operative functions of Human Resource Management. It is a short-term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. Training refers to the organizations efforts to improve an individuals ability to perform a job or organizational role. It can be defined as a learning experience in

which it seeks a relative permanent change in an individual that would improve his ability to perform the job. In the competitive environment of the present millennium only a learning organization will survive. Its abilities to learn, create, codify and utilize knowledge faster than its rivals and quicker than environment changes will provide tomorrows corporation a competitive edge that is sustainable forever. Indeed, since the core competence of any organization is nothing but the individual and collective learning of its entire people, corporation of coming age around the world. A learning organization is one that has developed the capacity to adopt and change. Learning organization will constantly learn. In order to become learning organization, an organization has to learn new skills, knowledge and techniques which possible only through providing, Training and development to all employees of the organization

1.2 Scope of the Study

The strength of any organization is its people. If people are attended to properly by recognizing their talents, developing their capabilities and utilizing them appropriately, organizations are likely to be dynamic and grow fast. Ultimately the variety of task in any organization has to be accomplished by the people. Some of them have capabilities to do certain tasks better than other tasks, and some of them may not have capabilities to do the task assigned to them. In any case one of the important process goals of any dynamic organization is to assure that its people are capable of doing the variety of tasks associated their role/position. Development of their capabilities keeps them psychologically vital. This development needs to be monitored in terms of matching it with the organizational requirements. Therefore, any organization; interested in developing the capabilities its employee should understand the nature of capabilities required to perform different functions as well as dynamics underlying the development of these capabilities in an and organizational context. Thus proper and timely training programs should be conducted in an organization. In this report I have presented by study on T&D at Reliance Money. The study limit to understanding the existing system and through a survey of employees to know their feedback of the T&D system & procedure. The study for time and other resources is limited in its scope but is a sound preliminary work for a researcher in this field.

1.3 Objectives of the Study

To analyze the existing training practices, its effectiveness and recommend measures to improve the training practices in RELIANCE MONEY. To study the frequency of training, training methods and their effects on the trainees and recommend certain measures for improvement. To understand the present practices enforced in respect of training at the personnel

department and recommend any changes if necessary. To take feedback and analyze the level of satisfaction amongst the employees in respect of training activities and suggest alternatives.

1.4 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.

1.5 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.

1.5.1 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.

1.6 Data Collection

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

1.6.1 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

1.6.2 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

1.7 Statistical Tools used

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

1.8 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. Organizations resistance to share the internal information. Questionnaire is subjected to errors.

1.9 Managerial usefulness of Study

The effectiveness of the training programs 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 programs and make changes if necessary.

CHAPTER II Review of the Literature

TRAINING
Employee training is a specialized function and is one of the fundamental operative functions of Human Resource Management. According to FLIPPO, Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

It is a short-term educational process and utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. Training refers to the organizations efforts to improve an individuals ability to perform a job or organizational role. It can be defined as a learning experience in which it seeks a relative permanent change in an individual that would improve his ability to perform the job.

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 trainees performance. When the trainees practice actually, they gain confidence and are less likely to make errors or to forget what they have learned. 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.

OBJECTIVES OF TRAINING

TO INCREASE PRODUCTIVITY An instructor can help employees increase their level of performance on their assignment. Increase in human performance leads to increase in the operational productivity and also the increase in the profit of the company. TO IMPROVE QUALITY Better-trained workers are less likely to make operational mistakes. It can be in relationship to the company or in reference to the intangible organizational employment atmosphere. TO HELP A COMPANY FULFILL ITS FUTURE PERSONNEL NEEDS The organizations having good internal training and development programmes will have to make less changes and adjustments. When the need arises, vacancies can be easily staffed. TO IMPROVE ORGANIZATIONAL CLIMATE An endless chain of positive reactions result from a well planned training programme. TO IMPROVE HEALTH AND SAFETY Proper training can prevent industrial accidents. A safer atmosphere leads to more stable attitudes on part of the employees. PERSONAL GROWTH Employees on a personal basis gain individually from their exposure to educational expressions. Training programmes give them wider awareness and skills.

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 economic output of the required quality.

To prevent obsolescence.

To promote individual and collective morale, responsibility and cooperative attitudes etc.

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TYPES OF TRAINING
Training is required for several purposes. Accordingly training programs may be of the following types:

Orientation training: Induction or orientation training seeks to adjust newly appointed employees to the work environment. Every new employee needs to be made fully familiar with his job, his superiors and subordinates and with the rules and regulations of the organization. Induction training creates self-confidence in the employees. It is also knows as pre-job training. It is brief and informative.

Job training: It refers to the training provided with a view to increase the knowledge and skills of an employee for performance on the job. Employees may be taught the correct methods of handling equipment and machines used in a job. Such training helps to reduce accidents, waste and inefficiency in the performance of the job.

Safety training: Training provided to minimize accidents and damage to machinery is known as safety training. It involves instruction in the use of safety devices and in safety consciousness.

Promotional training: It involves training of existing employees to enable them to perform higher-level jobs. Employees with potential are selected and they are given training before their promotion, so that they do not find it difficult to shoulder the higher responsibilities of the new positions to which they are promoted. Refresher training: When existing techniques become obsolete due to the development of better techniques, employees have to be trained in the use of new methods and techniques. With the passage of time employee may forget some of the methods of doing work. Refresher training is designed to revive and refresh the knowledge and to update the skills of the existing employees. Short-term refresher courses have become popular on account of rapid changes in technology and work methods. Refresher or re-training programmes are conducted to avoid obsolescence of knowledge and skills.

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METHODS OF TRAINING

METHODS OF TRAINING

ON- THE- JOB METHODS

OFF- THE- JOB METHODS

Fig - Methods of Training

ON-THE-JOB TECHNIQUES On the job techniques enables managers to practice management skills, make mistakes and learn from their mistakes under the guidance of an experienced, competent manager. Some of the methods are as:

Job Rotation: It is also referred to as cross straining. It involves placing an employee on different jobs for periods of time ranging from a few hours to several weeks. At lower job levels, it normally consumes a short period, such as few hours or one or two days. At higher job levels, it may consume much larger periods because staff trainees may be learning complex functions and responsibilities.

Job rotation for managers usually involves temporary assignments that may range from several months to one or more years in various departments, plants and offices. Job rotation for trainees involves several short-term assignments, that touch a variety of skills and gives the trainees a greater understanding of how various work areas function. For middle and upper level management, it serves a slightly different function. At this stage, it involves lateral promotions, which last for one or more years. It involves a move to different work environment so that manager may develop competence in general management decision-making skills.

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Enlarged and enriched job responsibilities: By giving an employee added job duties, and increasing the autonomy and responsibilities associated with the job, the firm allows an employee to learn a lot about the job, department and organization.

Job instruction training: It is also known as step-by-step training. Here, the trainer explains the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee. In simple words, it involves preparation, presentation, performance, and tryout and follow up.

Coaching: The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides the feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares some duties and responsibilities of the coach and relives him of his burden. A drawback is that the trainee may not have the freedom or opportunity to express his own ideas. Committee assignments:

Here in, a group of trainees are given and asked to solve an actual organizational problem. The trainees solve the problem jointly. This develops team work and group cohesiveness feelings amongst the trainees.

OFF-THE-JOB TRAINING It includes anything performed away from the employees job area or immediate work area. Two broad categories of it are: IN HOUSE PROGRAMMES These are conducted within the organizations own training facility; either by training

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specialists from HR department or by external consultant or a combination of both. OFF-SITE PROGRAMMES

It is held elsewhere and sponsored by an educational institution, a professional association, a government agency or an independent training and development firm.The various off- the- jobtraining programmes are as follows: Vestibule training: Herein, actual work conditions are

simulated in a classroom. Material, files and equipment those are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semiskilled jobs. The duration of this training ranges from few days to a few weeks. Theory can be related to practice in this method. Role-playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. This method involves action doing and practice. The participants play the role of certain characters, such as production manager, HR manager, foreman, workers etc. This method is mostly used for developing interpersonal interactions and relations. Lecture method: The lecture is a traditional and direct method of instruction. The instruction organizes the material and gives it to the group of trainees in the form of a talk. To be effective, the lecture must motivate and create interest among the trainees. An advantage of this method is that it is direct and can be used for a large group of trainees. Conference or discussion: It is a method in training the clerical, professional and supervisory personnel. It involves a group of people who pose ideas, examine and share facts and data, test assumptions and draw conclusions, all of which contribute to the improvement of job performance. It has an advantage that it involves two-way communication and hence feedback is provided. The participants feel free to speak in small groups. Success depends upon the leadership qualities of the person who leads the group. Programmed instruction: This method has become popular in recent years. The subject matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to mere complex levels of instructions. The trainee goes through these units by answering questions or filling the blanks. This method is expensive and time consuming.

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EXECUTIVE DEVELOPMENT PROCESS

Executives are the people who shape the policies, make the decisions and see their implementation in any business organization. They are the president, the vice-president, the managing director, works manager, plant superintendent, controller, treasurer, office managers, engineers, directors of functions such as purchasing, research, personnel, legal, marketing etc. Executive development may be stated as the application of planned efforts for raising the performance standards of high level managers, and for improving the attitudes and activities that enter into or influence their work and their work relations.

EXECUTIVE DEVELOPMENT PROCESS

Following are the steps, which are involved in the development process of executives: OBJECTIVES The first and foremost step is to define the long- term objectives of training and development of executives. STRENGTH AND WEAKNESS An inventory of managers is taken with special focus on their strength in terms of managerial skills and other attributes. Their unique capabilities, specialist knowledge and achievements are listed down against each. A comparison with the requirement of the organization will bring the gap in knowledge and skills of existing executive. This is the weakness. LONG- RANGE PLANS Here the management prepares long-term training and development plans for their executives, which include the annual training targets, the annual budgets and the specific area of training. SHORT- TERM PROGRAMME This programme specify the duration, starting time, ending time, number of executives being trained, identify the resources etc. IMPLEMENTATION

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The training programme envisaged before is put into operation. The actual training is initiated by proper timetable and other arrangements. EVALUATION In this step, the effectiveness of the executive training programme is evaluated by measuring the improved performance of executives who underwent the programme, on their job. There are various criteria of measuring effectiveness such as validity, reliability etc.

EVALUATING THE EFFECTIVENESS OF TRAINING

An Investor in People evaluates the investment in training and development to assess achievement and improve future effectiveness. Kearns (1994) suggests that there are four groups of measures of training effectiveness, which are used by organization. The groups are as follows: No Measurement Subjective Measures Qualitative Measures Objective Measures

The first group, in which no real measurement occurs, includes activities undertaken as an Act of Faith, where no form of measurement is attempted, such as initiatives to improve communications in organization, which seem to make people feel good and appear to have worked in some intangible manner. The second group includes subjective responses from trainees/course delegates, as exemplified by the Happy Sheet. The main question asked is about how individuals feel after the training. Organizations often make the assumption that positive responses indicate training success and therefore value to the organization. However, course delegates may well give strong positive response scores for a number of reasons, including the presentational skills of the trainer, the quality of the venue, and the feel good factor of indulging in a creative work group, and so on. Quality measures appear to be more objective than the previous group, but are often flawed by subjectivity as well. They are typified by questionnaires asking delegates to put a value on the likely benefits of a training programme. Objective measures are the only really meaningful ones. However, they challenge the provider of training to demonstrate how their training activities feed through to the bottom line: in terms of return on investment and return on the capital employed. There has often been an assumption, in times past, that training somehow justifies itself, because it is all about developing people.

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However, it is incumbent on organizations to look critically at the ways in which they evaluate their training activities, lest they fall prey to the subject approach and are badly caught out when a rigorous analysis of all the functions of the organizations business is called for. A desirable, if not essential, characteristic of all training programmes is a built-in provision for evaluation. The four main dimensions of evaluation are:

EVALUATION OF CONTEXTUAL FACTORS

Training effectiveness depends not only on what happens during training, but also on what happens before the actual training and what happens after the training has formally ended. Evaluation should, therefore, be done of both the pre-training and post-training work. Pre- training work includes proper identification of training needs, developing criteria of who should be sent for training, how many at a time and in what sequence, helping people to volunteer for training, building expectations of prospective participants from training etc. Post- training work includes helping the concerned managers to plan to utilize the participants training, and provide the needed support to them, building linkages between the training section and the line departments and so on.

EVALUATION OF TRAINING INPUTS This involves the evaluation of the training curriculum and its sequencing. EVALUATION OF THE TRAINING PROCESS The climate of the training organization, the relationship between participants and trainers, the general attitude, and approaches of the trainers, training methods, etc are some of the important elements of the training process which also needs to be evaluated. EVALUATION OF TRAINING OUTCOMES Measuring the carry-home value of a training programme in terms of what has been achieved and how much is the main task of evaluation. This, however, is a complex technical and professional task. Benefits of a training programme are not obvious and they are not readily measurable. Payoffs from training are intangible and rather slow to become apparent. A central problem is the absence of objective criteria and specific definitions of relevant variables by which to measure the effectiveness either of specific programmes or changes in employee behaviour. Nevertheless, the good personnel managers do make an effort to systematically appraise the benefits and results of their programmes.

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In job-related training, the objective is to train people for specific job skills so that their productivity may increase. Evaluation can be done either to the direct criterion of increase in output or to the indirect criteria of decrease in cost, breakage or rejects. Even more indirect are measures that point out changes in absenteeism or turnover. The most difficult problems of evaluation lie in the area of human relations skill training, which is given to the supervisors and middle- level managers. Supervisory and managerial training programmes are, for this reason, less amenable to objective review procedures. Much subjectivity enters into evaluations of these programmes, since exact standards and criteria are hard to devise.

THE EVALUATION MODELS

The process of evaluating the training effectiveness involves the consideration of various constraints. Many researchers have developed various methods and models in order to facilitate this process. Some of the models are described as below: -

CIRO MODEL OF EVALUATION Developed originally by WARR (1978), this theoretical model is based on evaluation being carried out at four different levels:

Context Evaluation: Obtaining and using information about the current operational context i.e. about individual difficulties, organizational deficiencies etc. in practice, this mainly implies the assessment of training needs as a basis for decision. This involves: Examining the expectations and perceptions of the people. Examining whether the training needs were accurately identified. Putting the specific training event in the wider context of other training activities. Establishing whether the trainers enjoyed the confidence of the trainees and whether

the latter are comfortable with the level and focus of the training.

Input Evaluation: Determine using factor and opinion about the available human and material training resources in order to choose between alternative training methods.

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This involves: Establishing the adequacy of the resource base and its cost. Considering the choice and effectiveness of the training methods and techniques. Identifying the numbers who successfully completed the program compared with those who started and draw appropriate inferences. Establishing whether the trainers were perceived to be credible as far as the trainees are concerned. Establishing whether the psychological and emotional climate of learning was appropriate.

Reaction Evaluation: Monitoring the training as it is in progress. This involves continuous examination of administrative arrangements and feedback from trainees. This involves: Looking at the reactions of trainees to the content and method of training. Establishing the reaction of other people, particularly line managers to the early results of the training program. Discussing the views and observations of the trainers.

Outcomes: It implies the measuring of the consequences of training. This involves: Establishing whether expectations of results were met. Identifying whether all or some of the learning objectives were met. Finding out what were the end course views about the training.

The three levels of outcome evaluation may be distinguished:

Immediate Outcomes: The changes in the trainees knowledge, skills and attitude that can be identified immediately after the completion of training. The aim here is to find out the extent to which positive transfer of learning has taken place from the training to the workplace. This type of evaluation may be done in several ways such as behaviourally anchored rating scales or self-repots supplemented by reports of subordinates, peers and supervisors or critical incidents etc.

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Intermediate Outcomes: These are the changes in trainees actual work behaviour, which result from training. The assumption here is that effective training should be reflected in the trainees increased job-proficiency.

Ultimate Outcomes: These are the changes in the functioning of part or the entire organization, which have resulted from changes in work behaviour. For this purpose, indexes of productivity, labour turnover etc, studies of organizational climate and human resource accounting are taken as the ultimate results achieved by the trainee.

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HAMBLINS MODEL
Hamblin (1974) said, The purpose of evaluation is control. A well-controlled training program is one in which the weakness and failures are identified and corrected by means of the negative feedback and strengths and successes and corrected by means of the positive feedback. The processes, which occur as a result of a successful training programme, can be divided into 4 levels. The evaluation can be carried out at any of the following levels:

Reaction Level: It measures the reactions of the trainees to the content and methods of the training, not the trainer, and to any other factors perceived as relevant. It determines what the trainee thought about the training.

Learning Level: It measures the learning attitude of the trainees during the learning period. It collects information that did the trainees learn what was intended.

Job Behavior Level: The job behavior of the trainees in the work environment at the end of the training period i.e. did the training got transferred to the job?

Effect on the Department: Has the training helped the trainees in improving the departments performance?

The Ultimate Level: It measures that has the training affected the ultimate well-being of the organization in terms of the business objectives.

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Training

Measuring Techniques at Each Level

O1 Reactions Objectives

E1 Reaction Effects

Reaction Notebooks Observers Record Reaction Forms

O2 Learning Objectives

E2 Learning Effects

Written Exam Multiple choice Test Learning Portfolios

O3 Job Behaviour Objectives

E3 Job Behavior Effects

Activity Sampling Interviews Questionnaires

O4 Organization Objectives

E4 Organization Effects

Indices of Productivity Organisation Culture

O5 Ultimate Value Objectives

E5 Ultimate Value Effects

Cost Benefit Analysis Human Resource Accounting

Fig - Flowchart of Hamblins Model

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MODEL USED IN THIS REPORT FOR EVALUATION AND RECOMMENDATIONS The Kirkpatrick Model establishes the effectiveness in terms of assessing the extent to which the objectives are met. Combining the four levels of this model and an optimum cost benefit strategy would enable the management to ascertain the extent to which a programme is contributing to the effectiveness of the organization. Therefore, this technique is used to identify and recommend certain measures in order to improve the training effectiveness at RELIANCE MONEY. The details of Kirkpatrick Model are explained in the succeeding paragraph.

THE KIRKPATRICK MODEL

Perhaps the most influential approach to training evaluation was developed by D.L. KIRKPATRICK (1975) which, according to Bornbrauer (1987), despite its age and common sense approach to the subject, remains valid: because of its comprehensiveness, simplicity, and applicability to a variety of training situations.

LEVEL ONE-REACTION

This level in the Kirkpatrick model is seen to offer some useful insights into the early experiences of trainees, but precisely because it is concerned with feelings and first reactions, the results need to be viewed with some caution. Measurement can be done through: Reaction sheets: Reaction sheets (often refereed to as happy sheets) should ask questions about the achievement of the course objectives, about the course material, the presentation, the activities used, the venue and the pre-course material. Group discussion: Build in time at the end of the course for how they will take the learning forward. Have them record the main points of the discussion for you to take away. Thumbs up, thumb down: This is much focused on reaction. Ask closed questions about the training course directed to the whole group. If participants feel the answer to the question is Yes they give a thumbs-up sign, if the answer is No, its a thumbs down. You need to record the number of responses, positive or negative, to each question.

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Level Two- Learning

This is the level at which new learning is generated and which requires evaluators to try to establish individuals progress towards the learning of specified skills and competencies. Measurements can be done through: Reaction sheets: Questions about what participants feel they have learnt during the course can be included on the reaction sheets. Post-courses review: Delegates should meet with their lime manager soon after the course to discuss what learning has taken place and how this will be applied. They should then meet at agreed intervals to review how much progress is being made. Action plans: By requiring delegates to complete action plans at the end of course, we imply that we are expecting them to implement some learning from the course and make some changes in the way they work.

LEVEL THREE- EFFECTS ON INDIVIDUAL PERFORMANCE

Recognizing that the purpose of training is to create new job capabilities means that evaluation must be extended to the working environment. Above all, this level of evaluation draws attention to the fact that training does not end at the completion of the training programme, but has to embrace issues such as the transfer of training, support for the use of new skills and competences and the support provided by line managers. Measurement can be done through: Post- course review with line manager: Delegates should meet with their lime manager soon after the course to discuss what learning has taken place and how this will be applied. They should then meet at agreed intervals to review how much progress is being made. Follow-up questionnaire: The trainer circulates a questionnaire to all delegates and their managers asking questions about how the learning from the course is being applied. Follow-up calls: The trainer, or a nominated person, chooses a random sample of delegates from a course and then contacts them and their line managers to ask a series of questions about the application of learning from the course.

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Re-testing: If the training is very skills- based and has culminated with a test, it is possible (although time-consuming) to re-test delegates on regular basis and then to retrain if necessary.

LEVEL FOUR- EFFECTS ON ORGANIZATIONAL PERFORMANCE

The ultimate level and one that represents an attempt to establish what is often described as the impact of training on the bottom line must be measured. As with level three evaluations, in order to assess the effects of training on an organization, measures need to be taken prior to the training being carried out. Examples of such measures are: Staff attitude surveys Profit levels Wastage Levels of consumables used Accidents and damage rates Customer complaints Working rates Error rates Work outstanding Task completed per hour/day/week Self-assessment of performance by team members

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TRAINING IN RELIANCE MONEY RELIANCE MONEY provides training to all its employees as per the policy of the organization.

PURPOSE OF TRAINING:

To ensure availability of trained manpower.

SCOPE:

All categories of employees

FLOW CHART OF TRAINING PROCEDURE

Identification of Needs Preparation of Training Plan Imparting Training

Feedback

Induction Training Training Effectiveness

Fig: - The training procedure

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IDENTIFICATION OF NEEDS

MANAGEMENT STAFF The Performance Appraisal form of the organization has a section in which the training and development needs are filed up. The person whom the concerned employee is reporting fills the Performance Appraisal form annually. Such person may be a branch head or department head. Identification of training need is done at the Executive Office (EO) level for the managers through the Performance Appraisal forms annually and the records are maintained at the Executive Office. Managers are nominated for the various training courses by the Executives Office. Managers may also be nominated to certain training programmes from the branch if the subjects covered are found to be of interest or if they offer a learning opportunity in some emerging areas of knowledge. Training needs for the department through their Performance Appraisal forms identifies the officers, which are filled in by the department head. The Performance Appraisal forms thus give the emerging training needs. This exercise is carried out annually.

STAFF AND WORKERS Training needs for staff and workers are identified based on: Companys strategy and policy. Organizational Thrust Areas. New Emerging Areas.

This together gives the consolidated system of needs that is prepared by the Personnel Officer and approved by the Department Head. PREPARATION OF TRAINING PLAN On the basis of identified training needs, the annual training calendar is prepared by the Personnel officer and approved by the Personnel Head. Annual Training Budget is prepared by Branch Personnel Head and is approved by Executive Office. This gives the final list of training activities in a particular year. It is attempted to carry out all the programmes to fulfill the identified needs. The Head of the Personnel Department monitors the actual training conducted vis--vis the identified training needs on a monthly basis.

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IMPARTING OF TRAINING Actual training is imparted with the help of in-house and outside agencies. The selection of these agencies is done on the basis of reputation; programmes offered by them, past experience and feedback received from the earlier participants. Training is also imparted by nominating the concerned employee for an external training programme. All records of the training are maintained at branch as per Record of Training in the Personnel folder and the same is intimated to the Executive Office Personnel through the Monthly Personnel Report. FEEDBACK A feedback is taken from the participants through a questionnaire on the programme and their impressions in order to further improve upon the same. There are three such questionnaires available and one of these is used depending upon the nature of the training programme and the level of participants. Also, a person from the personnel department sits through the final session of the programme and takes the verbal feedback about the programme.

INDUCTION TRAINING

STAFF/ OFFICERS/ MANAGERS This is carried out as the very first step for any new entrant into the branch at the Staff/ Officer/ Manager level. The department prepares a schedule for the employee as per which he is required to spend specific time in each department. During such period, he is reporting to the respective department head. The objective of the induction programme is to familiarize the participant to the function of different department. The copies of the same are sent to the General Manager and all concerned. At the end of the induction, the trainee has to submit a report to the Personnel Department. WORKERS In the case of a new entrant, he is called in General shift for 2 days for training under a senior worker to familiarize him with the welfare facilities like card punching, canteen, public conveniences, rules and regulations, standing orders, shift timings, spell outs, medical facilities, leave procedures etc. After two days of training, he is deployed in the concerned department. The Personnel Officer organizes this.

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MANAGEMENT TRAINEES TRAINING Management trainees are given a fortnight of induction programme. Corporate HR advises it as per Management Trainee Training programme designed by them. Thereafter, a detailed training programme is carried out whereby the incumbent is to understand in depth of working of each department at various locations as per the programme given by the Corporate HR. Corporate HR maintains all relevant records pertaining to Management Trainees training at Bangalore. TRAINING EFFECTIVENESS For each training programme conducted in-house for RELIANCE MONEY Delhi branch personnel, a training brochure is developed. The brochure developed consists of the following information: Programme objectives: Need of the training and what are the objectives that this training aims to achieve, what likely outcomes are expected to come out of impact of this training. Programme content: Topics being covered during the training. -Methodology adopted. -Programme faculty. -Personnel to be covered. -Training methodology. -Training effectiveness criteria and scale. The training effectiveness is measured by measurement of the achievement of the objectives. This lists down the measurement indicators, achievement of which will ensure that programme objectives are achieved.

A person gets nominated for the training programme in the following two ways: a) b) Training programme flowing from the training needs. Training programme for testing out the training/ increased awareness/ general

information/ omnibus training types etc.

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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.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 III Industry Profile Company Profile

INDUSTRY PROFILE

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1.1 General introduction about financial sector The financial sector is in a process of rapid transformation. Reforms are continuing as part of the overall structural reforms aimed at improving the Productivity and efficiency of the economy. The role of an integrated financial Infrastructure is to stimulate and sustain economic growth. The US$ 28 billion Indian financial sector has grown at around 15 per cent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis. This stability was ensured through the resilience that has been built into the system over time. The financial sector has kept pace with the growing needs of corporate and other borrowers. Banks, capital market participants and insurers have developed a wide range of products and services to suit varied customer requirements. The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are more in line with market forces. Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country.

1.2 Capital Market The Indian capital markets have witnessed a transformation over the last decade. India is now placed among the mature markets of the world. Key progressive initiatives in recent years include:

The depository and share dematerialization systems that have enhanced the efficiency of the transaction cycle. Replacing the flexible, but often exploited, forward trading mechanism with rolling settlement, to bring about transparency. The InfoTech-driven National Stock Exchange (NSE) with a national presence (for the benefit of investors across locations) and other initiatives to enhance the quality of financial disclosures. Corporatization of stock exchanges. The Securities and Exchange Board of India (SEBI) has effectively been functioning as an independent regulator with statutory powers. Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with attractive valuations and increasing returns. The Mumbai Stock Exchange continues to be the premier exchange in the country with an increase in market capitalization from US$ 40 billion in 1990-1991 to US$ 203 billion in 1999-2000. The stock exchange has about 6,000 listed companies and an average daily volume of about a billion dollars. Many new instruments have been introduced in the markets, including index futures,

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index options, derivatives and options and futures in select stocks.

1.3 Origin and Development of the industry The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbais Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as The Native Share & Stock Brokers Association. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSEs trading platform. Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the integration of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has become the largest stock exchange in India. Three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poors. In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as Best IT Usage Award by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). The National Stock Exchange of India was promoted by leading financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying

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company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. Since the early 1950s till the early 1990s, Indian policy makers had been nourishing the goal of Socialist pattern of society. They had been following the development planning strategy of the former Soviet Russia in a mixed economic framework. From July 1991, in the face of an unprecedented foreign exchange crisis, Indian economy started experiencing an IMF-World Bank dictated regime of liberalization. One aspect of this is financial liberalization. There is a move towards privatization of nationalized banks these banks are selling their shares in the stock market. Transnational banks are encouraged to operate in the Indian banking sector. Attempts are made to attract foreign direct investment in different sectors. There is an increasing entry of foreign portfolio capital due to stock market liberalization. People are encouraged to invest in stocks through income tax benefits and abolition of capital gains tax. There is a move to develop a national pension fund which will be invested in different stocks to get returns out of which pension will be provided to retired people. It is expected that boosting up of stock market will accelerate the process of capital accumulation and growth. Stock market development has been an important part of financial liberalization in the less developed countries (LDCs). In the pro-liberalization circle, stock market is assigned to play an important role in the capitalist development of LDCs. There are many studies supporting the positive link between stock market development and growth. Let us mention some of the recent studies. One important study was undertaken by Levine and Zervos (1998). Their cross-country study found that the Development of banks and stock markets has a positive effect on growth. In another study Levine (2003) argued that although theory provides ambiguous relationship between stock market liquidity and economic growth, the cross-country data for 49 countries over the period 1976- 93 suggest a strong and positive relationship (see also Levine, 2001). Henry (2000) studied a sample of 11 LDCs and observed that stock market liberalizations lead to private investment boom. Recently, Bekaert et al (2005) analyzed data of a large number of countries and observed that the stock market liberalization leads to an approximate 1 % increase in annual real per capita GDP growth. There are some economists who are skeptical. Long time back Keynes (1936) compared the stock market with casino and commented: when the capital development of a country becomes the by-product of the activities of a casino, the job is likely to be ill-done. Referring to the study of World Bank (1993), Singh (1997) pointed out that stock markets have played little role in the post-war industrialization of Japan, Korea and Taiwan. He argued that the recent move towards stock market liberalization is unlikely to help in achieving quicker industrialization and faster long-term economic growth in most of the LDCs. In this perspective this study

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examines the nature of relationship between stock market and growth through capital accumulation in India.

1.4 Growth and Present Status of the industry The ever-growing and fast-maturing 'India Market' is a lucrative business destination for developed countries. With 7-8% of GDP growth, huge analytical, young and English speaking work force the 'pull' for opportunities are luring. The bandwidth of 'India Market' is enviably wide and very deep. 'Markets in India' are well protected by legal guidelines and efficient administrators. With a liberal and proactive government at the center the road ahead for 'Markets of India' is very rosy. 'Market India' has witnessed exponential growth over past one and half decade. Foreseeing sure and substantial returns on investments (ROI) companies are pro- actively listing on the stock market indexes. Government agencies once much hated for red tape and bribes has shed its image. Professionalism is their new mantra. Public Enterprises like IOC, ONGC, RELIANCE MONEY, NTPC, SAIL, MTNL, BPCL, HPCL and GAIL, SBI, LIC, Hindustan Antibiotics Limited, Air India etc. to name a few, are giving Private Indian companies a good run for their money. Private giants like Reliance Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways, Ranbaxy, Biocon, Bajaj Auto, ICICI are breaking their own records every financial years. Indian Equity Market at present is a lucrative field for the investors and investing in Indian stocks are profitable for not only the long and medium-term investors, but also the position traders, short-term swing traders and also very short term intra-day traders. In terms of market capitalization, there are over 2500 companies in the BSE chart list with the Reliance Industries Limited at the top. There are about 22 stock exchanges in India which regulates the market trends of different stocks. Generally the bigger companies are listed with the NSE and the BSE, but there is the OTCEI or the Over the Counter Exchange of India, which lists the medium and small sized companies. There is the SEBI or the Securities and Exchange Board of India which supervises the functioning of the stock markets in India. Thus, the growing financial capital markets of India being encouraged by domestic and foreign investments is becoming a profitable business more with each day. If all the economic parameters are unchanged Indian Equity Market will be conducive for the growth of private equities and this will lead to an overall improvement in the Indian economy. Indian Stock Market including both NSE-National Stock Exchange and the BSE Bombay Stock Exchange have certainly taken a tremendous beating in the past few weeks. We are sure most of us here knew that the correction in the trading curve was round the corner which would be healthy, and the markets would bounce back with the help of mutual fund investments & buying of Indian stocks again. However the anticipation went wrong, and the US recession story along with global and Indian commodity prices have added fuel to the global equity market turmoil on a whole. 1.4.1 Future of the industry

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The stock market is booming in spite of the low agriculture output. The monsoon is good in an overall sense but still the question remains who take the credit? The answer is the karma of the people. I appreciate the Indian politicians and the industrialists who being pawns of destiny are doing things positive and productive. India, as a country is running a very good period and the position of planets in the transit are giving wonderful results. Less than one percent of population owns stocks and less than 1000 individuals control the market, the majority being the FIIs, the promoters of the company. The credit should go to media for making stock market headlines. In any case if you are long terms players then step-in and buy now and forget for another 10 years. You will make a killing in the Indian markets. Most of the tech companies and the main index will do well but slightly in the lower side of expectations. 1.4.2 Structure, Processes and Governance of the industry Under this, various processes involved in the industry will be discussed. Other than this, the bodies governing the industry will also be brief upon and an endeavor will be made to understand the whole structure of the industry. 1.4.3 Dematerialized Trading Indian investor community has undergone see changes in the past few years. India now has a very large investor population and ever increasing volumes of trades. However, this continuous growth in activities has also increased problems associated with stock trading. Most of these problems arise due to the intrinsic nature of paper based trading and settlement, like theft or loss of share certificates. This system requires handling of huge volumes of paper leading to increased costs and inefficiencies. Risk exposure of the investor due to this trading in paper. Some of these risks are: 1. Delay in transfer of shares. 2. Possibility of forgery on various documents leading to bad deliveries, legal disputes etc. 3. Possibility of theft of share certificates in the market. 4. Multiplication or loss of share certificates in transit. 5. Prevalence of fake certificates in the market. The physical form of holding and trading in securities also acts as a bottleneck for broking community in capital market operations. The introduction of NSE and BOLT has increased the reach of capital market manifolds. The increase in number of investors participating in the capital market has increased the possibility of being hit by a bad delivery. The cost and time spent by the brokers for rectification of these bad deliveries tends to be higher with the geographical spread of the clients. The increase in trade volumes lead to exponential rise in the back office operations thus limiting the growth potential of the broking members. The inconvenience faced by investors (in areas that are far flung and away from the main metros) in settlement of trade also limits the opportunity for such investors, especially in participating in

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auction trading. This has made the investors as well as broker wary of Indian capital market. In this scenario, dematerialized trading is certainly a welcome move. 1.5 What is Dematerialization? Dematerialization or Demat is a process whereby your securities like shares, debentures etc, are converted into electronic data and stored in computers by a Depository. Securities registered in your name are surrendered to depository participant (DP) and these are sent to the respective companies who will cancel them after Dematerialization and credit your depository account with the DP. The securities on Dematerialization appear as balances in your depository account. These balances are transferable like physical shares. If at a later date, you wish to have these Demat securities converted back into paper certificates; the Depository helps you to do this. Dematerialization is the process of converting the securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investors Demat account. Dematerialized securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity i.e.; the securities are fungible. Dematerialization of your holdings is not mandatory. You can hold your secure Demat form or in physical form. You can also keep part of your holdings (in the same script) in Demat form & part in physical form. However, securities specified by SEBI can be delivered only in Demat form in the stock exchanges connected to NSDL and / or CDSL.

1.5.1 The Process

1. Surrendering of certificate to Depository Participants for dematerialization. 2. NSDL is informed by the DP through electronic connectivity.

3. Original share certificates are submitted to the registrar by the DP. 4. The request for dematerialization from NSDL to the register. 5. The registrar credits an equivalent number of shares in the account and informs NSDL. 6. The NSDL updates its own account and the depository participants are informed. 7. The depository agent credits it in the account of the investor and the same is informed to the investor.

1.6 Re-materialization Sometimes the investor may like to convert his electronic holdings back into physical share certificate. The process undertaken for this purpose is called rematerialisation. The investor has to make a request to the depository participant for rematerialisation. The depository participant puts forward the request to NSDL after verifying whether the investor in having necessary

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security balances. NSDL in turn will intimate the registrar who prints the certificate and dispatch the same to the investor. The certificate has a new range of certificate numbers and new folio number. 1.6.1 The Process 1. Investor requests the DP for rematerialisation. 2. The depository participant informs it to the NSDL. 3. NSDL intimates the Registrar. 4. The Registrar of the company prints certificates with new number and informs NSDL. 5. NSDL adjusts its account and passes on the details to the DP. 6. The certificates are dispatched to the investor.

1.7 What is Depository? Depository functions like a securities bank, where the dematerialized physical securities are traded and held in custody. This facilitates faster, risk free and low cost settlement. Depository is much like a bank and performs many activities that are similar to a bank. Following table compares the two.

1.8 Bank Depository Holds funds in accounts Holds securities in account Transfers funds between accounts Transfers securities between accounts Transfers without handling money Transfers without handling securities Safekeeping of money Safekeeping of securities

1.9 NSDL and CDSL At present there are two depositories in India, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). NSDL is the first Indian depository; it was inaugurated in November 1996. NSDL was set up with an initial capital of US$28mn, promoted by Industrial Development Bank of India (IDBI), Unit Trust of India (UTI) and National Stock Exchange of India Ltd. (NSEIL). Later, State Bank of India (SBI) also became a shareholder. The other depository is Central Depository Services Limited (CDSL). It is still in

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the process of linking with the stock exchanges. It has registered around 20 DPs and has signed up with 40 companies. It had received a certificate of commencement of business from SEBI on February 8, 1999. These depositories have appointed different Depository Participants (DP) for them. An investor can open an account with any of the depositories DP. But transfers arising out of trades on the stock exchanges can take place only amongst account-holders with NSDLs DPs. This is because only NSDL is linked to the stock exchanges (nine of them including the main onesNational Stock Exchange and Bombay Stock Exchange). In order to facilitate transfers between investors having accounts in the two existing depositories in the country the Securities and Exchange Board of India has asked all stock exchanges to link up with the depositories. SEBI has also directed the companies registrar and transfer agents to effect change of registered ownership in its books within two hours of receiving a transfer request from the depositories. Once connected to both the depositories the stock exchanges have also to ensure that interdepository transfers take place smoothly. It also involves the two depositories connecting with each other. The NSDL and CDSL have signed an agreement for inter-depository connectivity. 1.10 What is a DP? A depository is like a bank where securities are held in electronic(dematerialized) form. In India, there are two Depositories National securities Depositories Limited (NSDL) and Central Depository Services Limited (CSDL). Under the Depositories Act, investors can avail of the services of the Depositories through Depository Participants (DP) such as ICICI bank. DPs are like bank branches wherein shares in physical form need to be deposited for converting the same to electronic (Demat) form. NSDL carries out its activities through various functionaries called business partners who include Depository Participants (DPs), issuing corporate and their Registrars and Transfer Agents, Clearing corporations/Clearing Houses etc. NSDL is electronically linked to each of these business partners via a satellite link through Very Small Aperture Terminals (VSATs). The entire integrated system (including the VSAT linkups and the software at NSDL and each business partners end) has been named as the NEST [National Electronic Settlement & Transfer] system. The investor interacts with the depository through a depository participant of NSDL. A DP can be a bank, financial institution, a custodian or a broker. Just as one opens a bank account in order to avail of the services of a bank, an investor opens a depository account with a depository participant in order to avail of depository facilities. 1.10.1 How to open a bank account with a DP Opening a depository account is as simple as opening a bank account. You can open a depository account with any DP convenient to you. To open an account you have to:

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1. Fill up the account opening form, which is available with the DP. 2. Sign the DP-client agreement, which defines the rights and duties of the DP and the person wishing to open the account. 3. Receive your client account number (client ID). 4. This client ID along with your DP ID gives you a unique identification in the Depository system There is no restriction on the number of depository accounts a person can open. However, if your existing physical shares are in joint names, you have to open the account in the same order of names before you submit your share certificates for demat. A sole holder of the share certificates cannot add more names as joint holders at the time of dematerializing his share certificates. However, if the investor wants to transfer the ownership from his individual name to a joint name, he should first open an account as the sole holder (account A) and dematerialize the share certificates. He should then open another depository account (account B) in which he is the first holder and the other person is the second holder and make an off market transfer of the shares from the account A to account B. The investor will incur a charge on this transaction. Alternatively, the certificates can be transferred to the joint ownership and then sent for Dematerialization. Right now, as per the Companies Act, there is no nomination facility for shares (whether in the physical or in the electronic form). The nomination facility for shares can be availed of only when the relevant provisions in the Companies Act are amended. NSDL captures the details of the nominee when the account is opened so as to offer the facility as soon as the relevant amendments are effected in the Law. A client can choose to open more than one account with same DP. In addition to this, he has a choice of opening accounts with more than one DP. However a broker can open just one Clearing Member account per card/ stock exchange for clearing purpose, but he can still open multiple beneficiary accounts Beneficiary is the personal account wherein brokers can keep their personal holdings. A broker has only one Clearing Member-pool-account. One Clearing Member pool account is opened per card/ stock exchange to settle trades in the dematerialized form. The Clearing Corporation/ House just deals with one designated account for pay-in and payout and the broker's clients know to which account they have to deliver and receive securities from. A clearing member cannot hold his personal holdings in his clearing member account. A broker may deal in the depository system as a clearing member only through a special account, known as the Clearing Member account. This account can be used only for clearing purposes and not for holding his own securities in it. As this is a transitory account, the securities held in this account are not eligible for corporate actions. Therefore, the broker will have to open a separate beneficiary owner account to hold his investments. There is no compulsion for the client to open his account with the same DP as that of his broker. Even if he has an account with another DP, he can carry out normal business with his broker. There is no loss in operational efficiency. But it is possible that opening account with his broker's DP may work out to his advantage, as some DPs may offer special charge structure if the broker and his clients are dealing through him.

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1.11 Trading Trading in dematerialized securities is quite similar to trading in physical securities. The major difference is that at the time of settlement, instead of delivery/ receipt of securities in the physical form, it is done through account transfer. An investor cannot trade in dematerialized securities through his DP. Trading at the stock exchanges can be done only through a registered trading member (broker) of the stock exchange irrespective of whether the securities are held in physical or dematerialized form. DPs role will only be to facilitate settlement of trade in the dematerialized form, by transferring securities from and to the account of the investor, for selling and buying respectively. Trading in dematerialized securities is presently available at NSE, BSE, CSE, DSE, LSE, MSE, ISE & OTCEI. These exchanges have a segment exclusive for trading in dematerialized securities and a segment where trades could be settled either in the physical or in the dematerialized form as per the choice of the delivering client. In unified (erstwhile - physical) segment securities can be delivered either in the physical form or in the dematerialized form at the choice of the delivering party. However, securities that have to be mandatorily settled in demat form (both by institutional investors & all category of investors) cannot be settled in physical form. Also for securities that have to be mandatorily settled in demat form by all categories of investors the concept of market lot is eliminated i.e. the tradable lot is one share from the date they become compulsory. 1.12 Settlement The settlement of trades in the stock exchanges is undertaken by the clearing corporation (CC)/ clearing house (CH) of the corresponding stock exchanges. While the settlement of dematerialized securities is effected through depository, the funds settlement is effected through the clearing banks. The clearing members directly with the CC/ CH settle the physical securities. Exclusive Demat segment follows rolling settlement (T+5) cycle and the unified (erstwhile - physical) segment follows account period settlement cycle. The accounting period is reduced to one day. In case of settlement of trades done in exclusive Demat segments, the pay-in and pay out of funds and securities are affected on the same day afternoon and evening (same day) thus reducing the blockage of funds and limiting exposure to the clearing corporation. Settlement of funds is effected through the clearing banks and depository plays no role in this. Settlement of securities is effected through NSDL depository system. Clearing and settlement of the regular market trades is affected through the clearing members of the clearinghouses of respective stock exchanges. All trading members of stock exchanges are clearing members of clearing houses. In addition, for settlement of institutional trades, custodians are also allowed to act as clearing members.

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Clearing members of clearinghouse, dealing in dematerialized securities are expected to open a clearing account with any DP for the purpose of settling trades in dematerialized securities. As, in the mixed (unified) segment, there is a possibility for all clearing members to receive dematerialized securities, they are expected to open clearing accounts. If there is any short delivery at the time of pay-in of securities, these short positions are auctioned in the Demat segment as done in the Unified (erstwhile-physical) segment. For trades executed on Wednesday (TD 1): Final/ Net obligation statement download - Friday (T+2nd working day) Settlement day (SD 1) i.e. pay in and pay out of funds and securities next Wednesday (T+5th working day) Auction trade day (ATD 1) - next Thursday (T+6th working day) Auction settlement day (ASD 1) - Monday (2nd working day from auction trade day i.e. T+8th working day) similarly, for trades executed on Thursday (TD 2): Final/ Net obligation statement download - Monday (T+2nd working day) Settlement day (SD 2) - next Thursday (T+5th working day) Auction trade day (ATD 2) - next Friday (T+6th working day) Auction settlement day (ASD 2) - Tuesday (2nd working day from auction trade day i.e. T+8th working day)

COMPANY PROFILE
2.1 Introduction Reliance Money is promoted by Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Money is a part of the Reliance Anil Dhirubhai Ambani Group. It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution

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channel with over 10,000 outlets and 20,000 touchpoints spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity, Equity and Commodity Derivatives, Offshore Investments, Portfolio Management Services, Wealth Management Services, Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. Reliance Capital Ltd. has also interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. In addition to the home-grown portfolio of products and services that Reliance Money has to offer, Reliance Money also distributes a variety of third party financial products. It also assists millions of investors in creating customized individual portfolios based on their diverse investment needs and risk profiles Reliance Money is the largest broker and distributor of financial products in India with the largest distribution network and almost over 3,174 employees. Money has increased its market share among private financial companies to nearly convenient & effective Anytime & anywhere financial transaction 2.2 Vision To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, This means to realize their full potential 2.3 Mission To create and nurture a world-class, high performance environment aimed at delighting our customers by providing endless financial products in all part of the country.

2.4 Success sutras of Reliance Money The success story of the company is driven by 8 success sutras adopted by it namely: 1. Trust 2. Integrity 3. Dedication 4. Commitment 5. Enterprise 6. Hard work and Team play 7. Learning and Innovation,

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8. Empathy and Humility. These are the values that bind success with Reliance Money 2.5 Achievements 2.5.1 List of recent achievements

In two successive joint surveys by The Economic Times Brand Equity and ACNielsen, Reliance was recognized as Indias Most Trusted Mutual Fund. The company also walked away with seven other scheme prizes five of them being outright winners in the Gulf 2007 Lipper Awards. These included the Fund House of the Year by Lipper GCC as well as ICRA Online and the Most Improved Fund House by Asia Asset Management. It also received the NDTV Business Leadership Award 2007 in the mutual fund category and runners up recognition as the Best Fund House in the Outlook MoneyNDTV Profit Awards. In addition, the company received the coveted CNBC Web18 Genius of the Web distinction for the Best Mutual Fund Website in the country. RCAM was awarded the India Onshore Fund House 2008 instituted by the Asian Investor magazine. The company also won the India Equities award in the 5-yearPerformance category.

2.5.2 Other achievements

Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an increase of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the same period, as against a net profit of Rs. 1 million for the corresponding previous period Reliance Money is the one of the leading brokerage and distributor of financial products in India with more than 3 million customers Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi, Webaroo, optionsXpress Holdings, Goldride Securities, World Gold Council, Wincor Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its customers It is amongst the leading Mutual fund distributors of the country distributing products of 20 AMCs. It is the the largest private sector partner for Western Union Money Transfer in India To further improve its position in the money changing and money transfer business, Reliance Money has acquired a significant shareholding in Wall Street Finance Ltd, a leading provider of money changing and money transfer services in the Country Reliance Money has tied up with Kuoni India and plans to retail its forex products/services through the national network of over 70 Kuoni outlets Reliance Money has tied up with India Post and World Gold Council to sell gold coins

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through the post office network across the country Reliance Money has obtained Category I Merchant Banking License from the Securities and Exchange Board of India. This new license allows Reliance Money to provide a wide range of investment banking services such as Issue Management, Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in India Reliance Money is taking its first steps into the Commodities Exchange business and is in the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange (HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in the commodity exchange and will have a board membership. Reliance Money is the first Indian firm to acquire a stake in an international exchange It has also obtained approval from the Ministry of Consumer Affairs for acquiring 10% stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).

Basic structure of Reliance ADA group

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Chart 2.1

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Working at Branch level Reliance Money Hyderabad (Branch Office)

Chart 2.2

2.6 Staff at Branch Level

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At Reliance Money Hyderabad, the following hierarchy exists: Three Centre managers. Eight to ten Business Development Executives under each Centre manager. Business associates under each Centre Manager their number depending upon the area allotted to each CM. Remisars under each centre manager. Team leader and PFCs under him for life insurance. One Customer Support Executive and One Senior Finance executive. 2.6.1 Centre Manager The Centre manager is the Heart of the office who acts as a connection between Head office (Mumbai), National head, Zonal head, Regional head, Area head, Cluster head, The Clients, Remisars, Business associates and the Business development executives. The Centre manager is responsible for the following functions;
1. Organizing all the BDEs, Business Associates and Remisars under one banner. 2. Making sure that the BDEs, Business Associates and Remisars are carrying out their

3. 4. 5.

6.
7. 8.

functions well i.e. expanding the business in form of selling the Share trading A/cs , mutual funds, selling general along with life insurance policies . Planning strategies for increasing the business (i.e. installation of canopies at the right place, appropriate advertising in different business Expos or corporate meets. Etc) Interviewing and Selecting Business development executive for the organization. Identifying the potential agents in the market and making them the business associate or remisar of Reliance Money for good business prospects. Assisting the new BDEs or remisars in handling the clients. Training the new BDEs and the remisars about the product and how to approach the clients. Reporting the regional head on the daily basis about the daily business performed.

2.7 Product Offering

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Reliance Money currently deals in the following financial products: 2.7.1 Trading Portal Online trading refers to buying and selling of the shares/stocks/contracts/bonds with the use of internet. In this shares are not issued in physical form rather they are transferred in the dematerialized form in the Demat account directly Demat account There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offline. (Buying and Selling are treated as separate transaction). Reliance Moneys advantage over others is that its charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities through a flat fee structure. The new wonder is Reliance Money's pre-paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Grouppromoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs1,000, Rs. 2500, Rs. 5,000 and Rs.10,000. Target low level of retail penetration in India - less than 3 per cent of household financing savings makes it into equity markets. Reliance Money Demat Account Holders can trade in Equities Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). Commodities A single platform to trade on both the major commodity exchanges i.e. NCDEX and MCX. In addition In-house research desk shall provide research reports on all major commodities which shall enable in getting views for trading and diversify clients holdings. Trade Execution assistance is also provided to clients. Offshore Investments Offshore investment is the keeping of money in a jurisdiction other than one's country of residence. Offshore jurisdictions are a commonly accepted solution to reducing excessive tax burdens levied in most countries to both large and small scale investors alike. The advantage to this is that such operations are both legal and less costly than the solutions offered in the investor's country - or "onshore". Offshore solutions are accessible to anyone who can meet the minimum investment amount or pay the obligatory fees required to open such an entity. Another reason why 'offshore' investment is superior to 'onshore' investment is because it is

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less regulated, and the behavior of the offshore investment provider, whether he be a banker, fund manager, trustee or stock-broker, is freer than it could be in a more regulated environment. Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines. How reliance money scored over others? 1. Two way authentication: Reliance offers its customers with a token (an electronic gadget) that generates a password, which are a third level of security in addition to the customer log in and a password provided. The password generated by the token is valid only for a period of 20 seconds. If the web page expires, for the fresh login, a new password generated by the token has to be keyed in by the customer. 2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is very less with respect to the other DPs in the market. 3. User friendly software: The portal offered is very easy to understand and use. 4. Better research and news: Reliance offers news from the DOW JONES and REUTERS. Seeking to bring share trading closer to consumers just like ATMs, Reliance Capital's stock brokerage arm Reliance Money launched Internet trading services through web-enabled retail kiosk.

Reliance Money Provide the kiosks (similar to ATMs) Facilities, to their customer through which the customers can trade on available kiosks at the particular Branch of Reliance Money. The company is going to open these kiosks in the market as the ATMs of the Banks Reliance Money share trading account Reliance Money unlike other brokering houses has introduced a new prepaid system of brokerage for the share trading in which it provides the lowest form of brokerage charged from an investor.

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Trading Plans Offered By Reliance Money

Following are also the main features of this share trading account provided by Reliance money: Flexibility to access reliance money services in multiple ways through Internet, Transaction kiosks, Call and transacts or seeks assistance through Business partners. This is a safeguarded account as reliance money provides an electronic token that flashes a unique security number in every thirty two seconds. This number works as a third level password (including the login ID and Password) keeping the account sage from any unauthorized access.

Flexibility to transact in Equity, Equity and commodity Derivatives, Offshore investments, mutual funds, IPOs, Life insurance and General Insurance either through

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online or through channel partners. With the help of this A/c investors can access to their banking, trading and Demat accounts without the hassle of writing cheques. Reliance money had tied up with UTI, HDFC and IDBI bank to link this share trading account for the investors. These were some of the features of Reliance money share trading account. A customer can do the share trading through trading kiosks installed by Reliance Money, through net, through business associates of R-Money.

2.7.2 Mutual funds

A mutual fund represents a vehicle for collective investment. When you participate in a scheme of a mutual fund, you become a part-owner of the investments held under that scheme. The most important characteristic of a mutual fund is that the contributors and the beneficiaries of the fund are the same class of people, namely the investors. The term MUTUAL means that investors contribute to the pool, and also benefit from the pool. The money held in the trust is divided into shares of equal value called UNITS. Investors become unit-holders and are allocated units based on the amount of their investment. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. Thus a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

2.7.2.1 Equity/Growth Schemes

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The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Some of the Equity/Growth schemes made available by Reliance Money are: o Reliance Growth Fund o Reliance Vision Fund o Reliance NRI Equity Fund o Reliance Equity Opportunities Fund o Reliance Index Fund o Reliance Tax Saver Fund o Reliance Equity Fund 2.7.2.2 Debt/Income Schemes The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Some of the Debt/Income schemes made available by Reliance Money are: o Reliance Income Fund o Reliance Medium Term Fund o Reliance Short Term Fund o Reliance Liquid Fund o Reliance Monthly Income Plan o Reliance Gilt Securities Fund o Reliance Floating Rate Fund o Reliance NRI Income Fund 2.7.2.3 Sector Specific Schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time They may also

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seek advice of an expert. Some of the sector specific schemes made available by Reliance Money are: o Reliance Banking Fund o Reliance Pharma Fund o Reliance Media and Entertainment Fund o Reliance Diversified Power Sector Fund 2.7.3 Portfolio management services Types of portfolio management services offered are: 2.7.3.1 Growth Fund A Moderate fund with growth approach and investments predominantly in largecap stocks. The objective is to ensure liquidity and lower impact cost leading to the construction of a relatively more stable portfolio. The portfolio management process will also focus on using cash as an investment tool and derivatives for protection of portfolio. Investment Objective Generate capital appreciation in medium to long term through investments in equities and equity related instruments comprising of predominantly large cap companies. This scheme will be benchmarked to the Nifty 50 stocks. Parameters Driving Investment Decision The portfolio strives at all times to achieve an overall 70% allocation to large cap companies. Again the portfolio will limit the exposure to any sector to be less than 25% of the portfolio size and to any scrip to be less than 10%. 2.7.3.2 Value Fund A highly flexible investment option, which offers a diversified investment portfolio across both large-cap and mid-cap stocks. This option follows a moderately aggressive approach to portfolio construction. The portfolio management process will also focus on using cash as an investment tool and derivatives for protection of portfolio. Investment Objective The objective of this scheme is wealth creation by delivering superior returns over long term (18 months) through investments in value & growth stocks. This will be benchmarked with BSE 200. Reliance Money has launched portfolio management services (PMS), where managers will create a basket of stocks for each client, based on individual needs, for amounts as low as Rs5 lakh. Such services are popular in India but almost all the offerings of large finance companies target high net worth individuals (HNIs) with the ability to invest Rs1 crore and above. Reliance Money, which helps clients invest in equities, derivatives and commodities, typically offers such services for amounts between Rs5 lakh and Rs75 lakh; Rs5 lakh is the smallest amount the industrys regulator mandates for PMS. Reliance Money would not take a fee unless the portfolio earns a return higher than 8%. If the client earns a return of 8-20%, the fee charged will be 10% of the absolute returns and if the client earns more than 20%, the fee will be 20%. The company offers a large-cap investment portfolio (where the stocks invested in will be those of large-cap companies), blue chip

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portfolio (blue chip companies) and an infrastructure portfolio 2.7.4 Gold Coins Reliance money has Introduced Pure Swiss Gold Coins, a welcome addition to Reliance Moneys large offering of Financial Investments. Gold not only acts as a secure investment, but is an efficient store of value offering high security & credibility. An instrument of long term investment, Gold acts as a hedge against inflation besides providing high liquidity. Most Indians share an emotional bond with Gold nearly Bordering with God. But in a highly disorganized Gold market, the purity aspect and thereby the value for ones Money during the purchase of Gold has always been a question mark. For the customer, the lack of access to a branded, affordable, reliable Gold coin has always been a matter of concern. Reliance aims to bridge this gap by giving 99.99% pure, 24 carat, Swiss Gold coins through its distribution network. Available in 0.5g, 1g, 5gm and 8gm denominations, these 24 carat, 99.99% pure, internationally certified Gold coins cater to a large segment of the society in both the retail and the corporate world. Available in tamper proof packaging, the overall look and feel of these coins is far superior & they possess a great finish. These Gold coins are Ideal for customers or corporates to be used as a gifting idea, for retail/agent contests, as employee rewards etc. Retail customers buy these coins just for the pleasure of owning it or as an investment idea. 2.7.5 LIFE INSURANCE

"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." Life Insurance policies have been categorized in the following manner: 1. Solution for individuals 2. Solution for groups Under the head of solution for individual there are four bifurcations PROTECTION PLANS 1. Term Plan 2. Simple Term Plan 3. Special Term Plan 4. Credit Guardian Plan 5. Special Credit Guardian Plan 6. Endowment Plan 7. Special Endowment Plan 8. Connect To Life Plan 9. Whole Life Plan 10. Wealth + Health Plan

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11. Cash Flow Plan 12. Special Cash Flow Plan RETIREMENT PLANS 1. Total Investment Plan II Pension 4. Wealth + Health Plan 2. Super Golden Years Plan 5. Automatic Investment Plan 3. Super Golden Years Plan- Plus 6. Money Guarantee Plan SAVING AND INVESTMENT PLAN 1. Super Invest Assure Plus Plan 2. Super Invest Assure Plan 3.Total Investment Plan I insurance 4. Wealth + Health Plan 5. Super Automatic Investment Plan 6. Money Guarantee Plan 7. Cash Flow Plan 8. Super Market Return Plan 9. Endowment Plan 10. Special Endowment Plan 11. Whole Life Plan 12. Super Golden Years Plan - Value 13. Super Golden Years Plan Plus. 14. Connect To Life Plan 15. Imaan Investment Plan 16. Saving Linked Insurance Plan CHILD PLANS 1. Child Plan 3. Wealth + Health plan 2. Secure Child Plan 4. Super Invest Assure Plan Under the Head of Solution for Groups, there are three bifurcations:

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Other than above mentioned plans, Reliance has tie-up with many insurance companies like ING Vysya, Kotak , ICICI prudential, HDFC standard life insurance etc. Reliance Money also offers life insurance policies of all the above mentioned companies other than its own life insurance products. 2.7.6. GENERAL INSURANCE It has also been categorized in the following manner: 2.7.6.1 For individuals 1. Health Wise Policy 2. Individual Mediclaim Insurance Policy

HEALTH INSURANCE

MOTOR INSURANCE

1. Two Wheeler Insurance Policies. 2. Private Car Insurance Policies

1. Home Protect Policy

HOME INSURANCE

2. Householders Package Policy

1. Travel Care Insurance Policy For Individuals And

TRAVEL INSURANCE

Families 2. Travel Care Insurance Policy For Students 3. Travel Care Insurance Policy- Asia 4. Pravasi Bhartiya Bima Yojana Insurance Policy

1. Individual Personal Accident Policy ACCIDENT COVER INSURANCE

2.7.6.2 For Corporates

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2.7.6.3 Other miscellaneous plans

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1. Money Insurance Policy 2. Burgulary and House Breaking Insurance Policy 3. Fidelty Guarantee Insurance Policy The above mentioned products belong to reliance general insurance but reliance money is also engaged in selling general insurance policies of other companies like Chola mandalan, IFFCO TOKYO etc. 2.7.7 Consumer finance

2.7.7.1 Personal loans Easy and hassle-free personal loans at attractive interest rates are offered up to INR 17, 00,000 and which can be repaid in flexible EMIs. One can also avail a personal loan on the basis of his/her repayment track record of an existing loan. 2.7.7.2 Home loans Reliance also offers offer housing finance to fulfill myriad requirements. These home loans have been customized to meet individual needs and desires. Attractive interest rates with bestin-class features and benefits make the experience even more pleasant. The simple EMIs as per the tenor you choose, makes paying back your loan an absolute breeze. Whether one is a salaried professional, self-employed professional or a self-employed non-professional, housing loans are designed to meet your unique requirements. 2.7.7.3 Car loans With flexible monthly repayment option, one can repay the auto finance up to 7 years for finanace taken for both new car loans and used car loans. It alsoconsider the on-road value of the vehicle for funding, i.e. it covers not just the insurance but also the road tax. 2.7.7.4 SME and Business loans 1. Business Line of Credit 2. Commercial Loans. 3. Expansion of business 4. Working capital loans 2.7.8 Money Transfer and Money Changing Reliance Money has given new brand identity for Travelmate Services and is dealing in Money Changing Services and Full-Fledged MoneyTransfer Business India is the largest recipient of global remittance of around $ 27 billion which is more than 10 percent of the total global remittance inflow of $ 240 billion. This is continuously rising due to labor migration Currently Reliance Money Express operates through a network of 3400 outlets spread over 800 cities and

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towns across India and handling close to 100,000 transactions per month with a daily average inward remittance of USD 1.4 million. 2.7.9 Fixed Deposits Reliance Money is also involved in availing its customers facility of fixed deposits. Currently, it is making available fixed deposits for the following banks: HDFC Deposits HDFC Premium Deposits ICICI Home Finance Mahindra and Mahindra Finance

FINANCIAL PERFORMANCE

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2.8 Discussion of financial performance

Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year ended March 31, 2009 as against Rs. 24 million of the corresponding previous period, an increase of 48 %. This increase was primarily due to the expansion of the distribution network and increase in its customer base The revenue mix is well balanced with broking contributing to 50% of the total revenues and distribution of financial products & other services (money transfer, currency changing & precious metal retailing) contribute to the balance 50% It achieved a net profit of Rs. 368 million (US$ 8 million) for the year ended March 31,2008, as against a profit of Rs. 1 million of the corresponding previous period Reliance Money generated revenues of Rs.352 crore for the year ended March 31, 2009, as against Rs.239 crore an increase of 47 per cent

Scale of operations

. 2.9 Corporate Governance Reliance Money has a vision of being a leading player in the Mutual Fund business and has achieved significant success and visibility in the market. However, an imperative part of growth and visibility is adherence to Good Conduct in the marketplace. At Reliance Money, the implementation and observance of ethical processes and policies has helped us in standing up to the scrutiny of our domestic and international investors.

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2.10 Management The management at Reliance Money is committed to good Corporate Governance, which includes transparency and timely dissemination of information to its investors and unit holders. The Board of Directors of RCAM is a professional body, including well-experienced and knowledgeable Independent Members. Regular Audit Committee meetings are conducted to review the operations and performance of the company. 2.11 Employees Reliance Money has at present, a code of conduct for all its officers. It has a clearly defined prohibition on insider trading policy and regulations. The management believes in the principles of propriety and utmost care is taken while handling public money, making proper and adequate disclosures. All personnel at Reliance Money are made aware of their rights, obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a well-designed HR program, conducted to impart work ethics, the Code of Conduct, information security, Internet and e-mail usage and a host of other issues. One of the core objectives is to identify issues considered sensitive by global corporate standards, and implement policies/guidelines in conformity with the best practices as an ongoing process. Reliance Capital Asset Management Ltd. gives top priority to compliance in true letter and spirit, fully understanding its fiduciary responsibilities. 2.12 Social Responsibilities Organizations, like individuals, depend for their survival, sustenance and growth on the support and goodwill of the communities of which they are an integral part, and must pay back this generosity in every way they can. This ethical standpoint, derived from the vision of the founder, lies at the heart of the CSR philosophy of the Reliance Group. While they strongly believe that their primary obligation or duty as corporate entities is to their shareholders they are just as mindful of the fact that this imperative does not exist in isolation; it is part of a much larger compact which they have with their entire body of stakeholders: From employees, customers and vendors to business partners, eco-system, local communities, and society at large. They evaluate and assess each critical business decision or choice from the point of view of diverse stakeholder interest, driven by the need to minimize risk and to pro-actively address long-term social, economic and environmental costs and concerns. For them, being socially responsible is not an occasional act of charity or that one-time token financial contribution to the local school, hospital or environmental NGO. It is an ongoing year-round commitment, which is integrated into the very core of their business objectives and strategy. Because they believe that there is no contradiction between doing well and doing right. Indeed, doing right is a necessary condition for doing well. Each of Reliance Capitals different businesses vigorously implement their own CSR initiatives. Indeed, their CSR efforts are counted when calculating the businesss performance for the year.

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Some of the work done by them include: 1. Blood donation campsin Mumbai, but also in other cities such as Bangalore, Chennai, and Hyderabad. 2. Donating old computers to local schools in Navi Mumbai. 3. Celebrating Independence Day with the less privilegedstreet children are taken to amusement parks, donations are given to NGOs working with children or the aged or to the Missionaries of Charity. Again, this is done across the country from Raipur to Jaipur, from Kolkata to Hyderabad. 4. Similar initiatives are undertaken on Diwali or on Christmas. 5. Bihar was stuck by calamitous flooding last year. Reliance Capital employees working with their businesses generously donated clothes and money for the relief effort. 6. Direct cash aid for paying the medical expenses of life-threatening requirements for some under-privileged people is also done by one of the businesses 2.13 Top Management Profile Sudip Bandyopadhyay, 45 is the Managing Director of Reliance Money. He has been with Reliance Capital since May 2005 and spearheads its broking, distribution, OTC (over-thecounter) and exchange business, under the brand, bReliance Money. He has been responsible for making Reliance Money into India's largest broking and distribution house in three years. Sudip has been instrumental in taking Reliance Money international through various innovative tie-ups and acquisitions. Sudip was also responsible for the acquisition of AMP Sanmar that launched Reliance's foray in the Life Insurance segment. He has 22 years of experience in the financial sector. Prior to joining Reliance Capital, Sudip was heading Treasury and Investment at ITC. A Charted Accountant and Cost Accountant by profession, Sudip started his career as a management trainee with Hindustan Unilever. An avid reader, Sudip believes that books have played a key role in shaping his life and making him the person he is today. He attributes his success to his learnings from books such as Pather Panchali, Overload, Moneychangers, etc., read by him during various phases of his life 2.14 SWOT Analysis Strengths One of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. It is Indias first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations pan- India. The quality assurance provides an edge over other players. Company issued 36.57 Lac policies during the year as compared to 14.60 Lac in the previous year thereby registering a growth of 150%. RGIC has been able to give highest ROI of 11.27% in last five years. The net worth has

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doubled to Rs.4.94 billion from last years Rs.2.59 billion. Excellent outreach with a large distribution network. It has 200 branches across 171 cities and over 20,000 intermediaries. The setup provides the company is very strong and very effective distribution network, and consequently a strong penetration in the market. Experts and research team to make strategies and products for company as well as clients base to resolve the problem. Capture the 17% of the Private Sector Share & 7% share of the General Insurance Industry Reserves and Surplus has increased five times to Rs.4.998 billion from Rs.1.04 billion previous year. The Company has earned Rs.1034 crore of New Premium Business in Financial Year 2008 which is 41% share of the Private Sector Industry & 33% of the Industry as whole. Company is ranked number one in the New Premium Business in Financial Year 2008. Other than this, it maintains a good database of it existing and potential customer, has a brand image and low pricing strategy Reliance Money unlike other brokering houses has introduced a new prepaid system of brokerage for the share trading in which it provides the lowest form of brokerage charged from an investor.

Weaknesses Dependence on fellow subsidiaries for various supplies. Extra control or interference from fellow subsidiaries. Sudden expansion in year 2007-08 by establishing more than 125 branches has increased operations and administration expenses due to which losses incurred. Due to the emphasis on recruiting young people in the company, staff is inexperienced. Clientage is not so loyal as compared to the clientage of other competing companies in the same industry The phenomenon of job hopping is very common in the company. So, the problem of loyalty towards the company on behalf of the employees is a major problmem Opportunities IRDA has removed controls on pricing in General Insurance business with effect from 1st January, 2008. IRDA had notified that except for Motor Third Party risks, all other new insurances and renewals effective on or after 1st January, 2008, insurers shall be free to quotes rates of premium in accordance with file and use guidelines. General insurance industry in India has grown at 15% CAGR in terms of gross premium collection. The company has moved to 3rd position amongst Private Sector Insurers in Financial Year 2008 & is ranked 7th amongst the Industry with 14 General Insurance players. In india, there is still a lot more market to be tapped which is getting supported by increasing spending and thereby saving of people.

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The mindset of people have also started changing. Now, they consider trading as a good source of earning. The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder.

Threats New Entrants Future General India Life Insurance Company Limited -Sep. 2007 IDBI Fortis Life Insurance Company Ltd. Dec 2007 Bharti Axa General Insurance Company Ltd. -June 2008 New joint ventures (JVs) by industry giants Max India forms JVC with Bupa Finance to foray into Health Insurance Shriram Group is to enter General Insurance Market Stiff competition from existing players in the market

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CHAPTER IV Data Analysis and Interpretation

DATA ANALYSIS
1) How many training programmes have you attended in last 5 years?
No. of Programmes No. of Respondents % of Responses

66

0-5 6-10 10-15 More than 15 Total

8 5 4 3 20

40% 25% 20% 15% 100%

INTERPRETATION

45% of the officers have attended 6-15 training programmes in the last 5 years, which is an indication of an effective training policy of the organization. However, 40% of the officers have attended only 0-5 training programmes, which needs to be evenly monitored by the organization.

2) The programme objectives were known to you before attending it.

Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 5 7 3 1 4 20

% of Responses 25% 35% 15% 5% 20% 100%

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INTERPRETATION 35% of the respondents moderately agree to the fact of knowing the training objectives beforehand, in addition to 25% who strongly agree. But a small population disagrees as 20% strongly disagree to this notion. Training objectives should therefore be made known compulsorily before imparting training in the organization.

3) The training programme was relevant to your developmental needs.

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Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 6 8 3 2 1 20

% of Responses 30% 40% 15% 10% 5% 100%

INTERPRETATION 70% of the respondents feel that the training programmes were in accordance to their developmental needs. 15% respondents could not comment on the question and 15% think that the programmes are irrelevant to their developmental needs and the organization must ensure programmes that satisfy the developmental needs of the officers.

4- The period of training session was sufficient for the learning.

Options Strongly agree

No. of Respondents 6

% of Responses 31%

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Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

4 4 3 2 20

21% 21% 16% 11% 100%

INTERPRETATION 52% respondents feel that the time limit of the training programme was adequate but 25% feel that it was insufficient. Also, 21% could not comment on the question. All the respondents though felt that increase in time limit of the programmes would certainly be beneficial and the organization should plan for this to be implemented in the near future.

5) The training methods used during the training were effective for understanding the subject.

Options Strongly agree

No. of Respondents 4

% of Responses 20%

70

Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

8 3 3 2 20

40% 15% 15% 10% 100%

INTERPRETATION 40% of the respondents believe that the training methods used during the programmes were helpful in understanding the subject, yet 25% disagree to this notion. The organization should use better, hi-tech methods to enhance the effectiveness of the methods being used during the training programmes.

6) The training sessions were exciting and a good learning experience.

71

Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 5 8 2 3 2 20

% of Responses 25% 40% 10% 15% 10% 100%

INTERPRETATION

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65% respondents believe that the training sessions were exciting and a good learning experience. 10% respondents could not comment on this while 25% differ in opinion. They feel that the training sessions could have been more exciting if the sessions had been more interactive and in line with the current practices in the market.

7) The training aids used were helpful in improving the overall effectiveness of the programme.
Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total No. of Respondents 4 5 7 3 1 20 % of Responses 20% 25% 35% 15% 5% 100%

INTERPRETATION

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40% of the respondents believe that the training aids used were helpful in improving the overall effectiveness, yet 20% disagree to this notion. 35% respondents did not comment on the issue. Yet the total mindset of the respondents was that the organization should use better scientific aids to enhance the presentation and acceptance value of the training programme.

8) The training was effective in improving on- the- job efficiency.

Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 3 6 4 4 3 20

% of Responses 15% 30% 20% 20% 15% 100%

INTERPRETATION 45% respondents believe that the training programmes increase their job efficiency but 35% disagree to this. The view of the respondents were towards having more technological and current topics for

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the training programmes which could help them satisfy their creative urge and simultaneously increase their on-the-job efficiency.

9) In your opinion, the numbers of training programmes organized during the year were sufficient for officers of RELIANCE MONEY.
Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total No. of Respondents 2 3 5 2 8 20 % of Responses 10% 15% 25% 10% 40% 100%

INTERPRETATION 25% respondents have the opinion that the frequency of the training programmes is sufficient but 50% of the respondents differ to this. They believe that the number of training programmes organized in a year should be increased and some in house training programmes should also be organized by the organisation regularly. 10) How many training programs have you attended during the last year?

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No. of Programs Upto 2 3-5 6-8 More than 8 Total

No. of Respondents 25 10 4 1 40

% of Responses 62% 25% 10% 3% 100%

INTERPRETATION 35% of the workers have attended 3-8 training programmes in the last year, which is the clue of a useful training policy of the organization. However, 62% of the workers have attended only 0-2 training programmes, which should be effectively seen by the organization. Also, every worker should be given chances to attend as many training programmes as possible.

11) The training given is useful to you.

Options

No. of Respondents

% of Responses

76

Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

19 10 5 5 1 20

47% 24% 13% 13% 3% 100%

INTERPRETATION 71% of the respondents feel that the training programmes were useful. 13% respondents could not comment on the question and 16% think that the programmes were irrelevant to their objective of being useful. The organization must ensure programmes that are useful and prove to cater to the developmental needs of the workers.

12) The time limit of the training programme was sufficient.

Options Strongly agree Moderately agree

No. of Respondents 7 14

% of Responses 18% 34%

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Cant Say Moderately Disagree Strongly Disagree Total

5 6 8 40

13% 15% 20% 100%

INTERPRETATION 42% respondents feel that the time limit of the training programme was adequate but 35% feel that it was insufficient. Also, 13% could not comment on the question. All the respondents though felt that increase in time limit of the programmes would certainly be advantageous and the organization should take some steps in this direction.

13) The time limit of the training programme, if increased would make it more effective.

Options Strongly agree Moderately agree Cant Say Moderately Disagree

No. of Respondents 18 8 4 8

% of Responses 45% 20% 10% 20%

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Strongly Disagree Total

2 40

5% 100%

INTERPRETATION

65% respondents feel that the increase in the duration of the training programmes would be beneficial but 25% differ to this opinion. Going by the majority, the organisation should make required changes to increase the duration of the programmes and also take the opinion of the workers to have an effective training session.

14) The training was effective in improving your on-the-job efficiency.

Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 15 10 5 6 4 40

% of Responses 37% 25% 13% 15% 10% 100%

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INTERPRETATION 62% respondents believe that the training programmes increase their job efficiency but 25% disagree to this. The respondents were of the opinion that having current topics for the training programmes and also some sessions by an external faculty would help them increase their on the job efficiency.

15) The training aids used were effective in improving the overall effectiveness of the programme.

Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total

No. of Respondents 10 4 12 8 6 40

% of Responses 25% 10% 30% 20% 15% 100%

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INTERPRETATION 35% respondents believe that the training aids were effective in improving the overall efficiency of the programme. Contrary to this, 35% disagree and 30% could not comment on the issue. The organization should ensure positive awareness about the training aids used. Also, the use of better presentation aids should be facilitated.

16) The number of training programmes organized for workers in a year are sufficient.
Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total No. of Respondents 7 6 4 15 8 40 % of Responses 18% 15% 10% 37% 20% 100%

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INTERPRETATION 33% respondents believe that the numbers of training programmes organized in a year are sufficient, but a majority of 57% disagrees to this. The organization should ensure multiple programmes for the workers and hence enable them in improving their skills and knowledge.

17) The participation of workers in training programme would help increase its effectiveness.
Options Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree Total No. of Respondents 20 9 5 4 2 40 % of Responses 49% 23% 13% 10% 5% 100%

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INTERPRETATION 72% respondents feel that participative and interactive training session could provide more awareness and knowledge in a small span of time as compared to classroom teaching. 13% respondents could not comment on this and 15% disagree to it.

18)

Please suggest any changes you would like to have in the existing training programmes.

The major suggestions for changes in the existing training programmes are as follows: The workers were of the opinion that external faculty should be appointed for the training programmes. The period of the training sessions should be augmented. The rate of the training programmes organized in a year should be increased. Everyone should get a chance to attend the training programmes. Documentaries and other films relating to issues of motivation, team building should be screened. Practical examples should be used to make things easy to understand during the training sessions. Better technological aids and methods should be used to make the training sessions exciting.

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CHAPTER V
Conclusions & Implications Recommendations

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CONCLUSIONS & IMPLICATIONS

The major findings of the project are enumerated as follows:

Training is considered as a positive step towards augmentation of the knowledge base by the respondents. The objectives of the training programmes were broadly known to the respondents prior to attending them. The training programmes were adequately designed to cater to the developmental needs of the respondents. Some of the respondents suggested that the time period of the training programmes were less and thus need to be increased. Some of the respondents also suggested that use of latest training methods will enhance the effectiveness of the training programmes. Some respondents believe that the training sessions could be made more exciting if the sessions had been more interactive and in line with the current practices in the market. The training aids used were helpful in improving the overall effectiveness of the training programmes. The training programmes were able to improve on-the-job efficiency. Some respondents also recommended that the number of training programmes be increased.

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RECOMMENDATIONS

Based on the data collected through the questionnaire and interactions with the Officers and Workers of RELIANCE MONEY the following recommendations are made for consideration:

The organization may utilize both subjective and objective approach for the training programmes. The organization may consider deputing each employee to attend at least one training programmes each year. The In-house training programmes will be beneficial to the organization as well as employees since it will help employees to attend their official work while undergoing the training. The organization can also arrange part time training programmes in the office premises for short durations, spanning over a few days, in order to avoid any interruption in the routine work. The organization can arrange the training programmes department wise in order to give focused attention towards the departmental requirements.

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APPENDIX
QUESTIONNIARE
1) How many training programmes have you attended in last 5 years? 0-5 6-10 10-15 More than 15

2) The programme objectives were known to you before attending it. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

3) The training programme was relevant to your developmental needs. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

The period of training session was sufficient for the learning. Strongly agree Moderately agree Cant Say Moderately Disagree

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 Strongly Disagree

5) The training methods used during the training were effective for understanding the subject. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

6) The training sessions were exciting and a good learning experience. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

7) The training aids used were helpful in improving the overall effectiveness of the programme. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

8) The training was effective in improving on- the- job efficiency. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

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9) In your opinion, the numbers of training programmes organized during the year were sufficient for officers of RELIANCE MONEY. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

10) How many training programmes have you attended during the last year? Upto 2 3-5 6-8 More than 8

11) The training given is useful to you. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

12) The time limit of the training programme was sufficient Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

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13) The time limit of the training programme, if increased would make it more effective. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

14) The training was effective in improving your on-the-job efficiency. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

15)

The training aids used were effective in improving the overall effectiveness of the programme. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

16) The number of training programmes organized for workers in a year are sufficient. Strongly agree Moderately agree Cant Say Moderately Disagree

90

 Strongly Disagree

17)

The participation of workers in training programme would help increase its effectiveness. Strongly agree Moderately agree Cant Say Moderately Disagree Strongly Disagree

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BIBLIOGRAPHY

Effective Planning in Training and Development World Class Training Training in Practice Human Resource Management Human Resource Management Human Capital

Leslie Rae Kaye Thorne Blackwell C.B.Gupta T.N.Chabra Journal

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