1

INTRODUCTION TO THE TOPIC

MEANING OF MOTIVATION

The term motivation has been derived from the word motive. Motive may be defined as an inner state of or mind that activates and directs our behavior. It makes us move to act. It is always internal to us and is externalized via our behavior. Motivation is ones willingness to exert efforts towards the accomplishment of an individuals goal. DEFINITION OF MOTIVATION Fred Luthans: A process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that is aimed at a goal or incentive. Stephen P. Robbins: Motivation is the willingness to exert high levels of efforts toward organizational goals, conditioned by the effort ability to satisfy some individual need. Gray and Starke: Motivation is the result of process, internal or external to the individual that arouses enthusiasm and persistence to pursue a certain course of action. MOTIVATION CYCLE OR PROCESS Motivation is a process or cycle aimed at accomplishing some goals. The basic elements included in the process are motives, goals and behavior.

Motives: Almost all human behavior is motivated. Motives prompt people to action. Hence, these are at the very heart of motivational process. Motives provide an activating thrust towards reaching a goal. Goals: Motives are generally directed towards goals. Motives generally create a state of physiological or psychological imbalance. Attaining goals restores balance. Behavior: Behavior is a series of activities to be undertaken. Behavior is directed to achieve a goal.

GENERAL THEORIES OF MOTIVATION

THEORIES BASED ON HUMAN NEED

1. Maslows Need Hierarchy Theory Maslows theory is based on the human needs. In essence he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man.

I. PHYSIOLOGICAL NEED: These needs are basic of human life and hence include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behavior. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.

II. SAFETY NEED: After satisfying the physiological needs, the next needs felt are called safety and security need. These needs find expression in such desires as economic security and protection prompted to work more. Like physiological needs, these become inactive once they are satisfied.

III. SOCIAL NEEDS: Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, tec. It is this socializing and belongingness why individuals prefer to work in groups and especially older people go to work.

IV. SELF ESTEEM NEEDS: These needs refer to self-esteem and selfrespect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The organization. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.

V. SELF ACTUALISATION NEEDS: This level represents the culmination of all the lower, intermediate and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for selfactualization. This refers to fulfillment. The word self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at.

According to Maslow, the human need follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslows need hierarchy theory is not without its detractors. 2. Herzbergs Motivation Hygiene Theory The psychologist Frederic Herzberg extended the work of Maslow and proposed a new motivation theory popularly known as Herzbergs Motivation Hygiene [Two Factors] Theory. Herzberg conducted a widely reported motivational study on 200 accountants and engineers employed by firms in and around Western Pennsylvania. He asked these people to describe two important incidents at their jobs: [1] When did you feel particularly good about your job and [2] when did you feel exceptionally bad about your job? He used the critical incident method of obtaining data. The responses when analyzed were found quite interesting and fairly consistent. The replies respondents gave when they felt good about their jobs were significantly different from the replies given when they felt bad. Reported 6

good feelings were generally associated with Employee MotivationL, whereas bad feeling with job dissatisfaction. Herzberg labeled the job satisfiers motivators, and he called job dissatisfies hygiene or maintenance factors. Taken together, the motivators and hygiene factors have become known as Herzbergs two-factor theory of motivation. According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he says, is that removal of dissatisfying characteristics from a job does not necessarily make the job satisfying. He believes in the existence of a dual continuum. The opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction. According to Herzberg, todays motivators are tomorrows hygiene because the later stop influencing the behavior of persons when they get them. Accordingly, ones hygiene may be the motivator of another.

3. McClelland Need Theory McClelland developed his theory based on Henry Murrays developed long list of motives and manifest needs used in his early studies of personality. McClellands need-theory is closely associated with learning theory, because he believed that needs are learned or acquired by the kinds of events people experienced in their environment and culture. He found that people who acquire a particular need behave differently from those who do not have. His theory focuses on Murrays three needs; achievement, power and affiliation. a. Need for Achievement: This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed. In other words, need for achievement is a behavior directed towards competition with a standard of excellence. McClelland found that people with a high need for achievement perform better than those with a moderate or low need for achievement, and noted regional/ national differences in achievement motivation. b. Need for Power: The need for power is concerned with making an impact on others, the desire to influence others, the urge to change people, and the

desire to make a difference in life. People with a high need for power are people who like to be in control of people and events c. Need for Affiliation: The need form affiliation is defined as a desire to establish and maintain friendly and warm relations with other people. *Summary chart of three need theories of motivation just discussed. The chart shows the parallel relationship between the need s in each of the theories. Maslows refers to higher-lower order needs, whereas Herzberg refers to motivation and hygiene factor.

A.

THEORIES BASED ON HUMAN NATURE

1. McGregors Participation Theory

Douglas McGregor formulated two distinct views of human being based on participation of workers. The first basically negative, labeled Theory X, and the other basically positive, labeled Theory Y. Theory X is based on the following assumptions: i. People are by nature indolent. That is, they like to work as little as possible. ii. People lack ambition, dislike responsibility, and prefer to be directed by others. iii. People are inherently self-centered and indifferent to organizational needs and goals. iv. People are generally gullible and not very sharp and bright Theory Y based on following assumes that: i. People are not by nature passive or resistant to organizational goals. ii. Thy want to assume responsibility. iii. Thy want their organization to succeed. iv. People are capable of directing their own behavior. v. They have need for achievement. McGregor tried to dramatize through his theory X and Y is to outline the extremes to draw the fencing within which the organizational man is usually seen to behave. The fact remains that no organizational man would actually belong either to theory X or theory Y. In reality, he/she shares the traits of both. What actually happens is that man swings from one set or properties to the other with changes in his mood and motives in changing environment.

2. Urwicks Theory Z Much after the propositions of theories X and Y by McGregor, the three theorists- Urwick, Rangnekar, and Ouchi-propounded the third theory labeled as Z theory. The two propositions in Urwickss theory are that: i. Each individual should know the organizational goals precisely and the amount of contribution through his effort towards these goals.

ii. Each individual should also know that the relation of organizational goals is going to satisfy his/her needs positively. In Urwicks view, the above to make people ready to behave positively to accomplish both organizational and individual goals However, Ouchis Theory Z has attracted the lot of attention of management practitioners as well as researchers. It must be noted that Z does not stand for anything, is merely the last alphabet in the English Language. Theory Z based on following four postulates: i. Strong Bond between Organization and Employees ii. Employee Participation and Involvement iii. No Formal Organization Structure iv. Human Resource Development Ouchis Theory Z represents the adoption of Japanese management practices [Group decision making, social cohesion, job security, holistic concern for employees, etc.] by the American Companies. In India, Maruti-Suzuki, HeroHonda, etc apply the postulates of theory Z.

3. Argyris Theory Argyris has developed his motivation theory based on proposition how management practices affect the individual behavior and growth. In his view, the seven changes taking place in an individual personality make him/her a mature one. In other words, personality of individual develops from immaturity to maturity as follows: Immaturity Passivity Dependence Capable of behaving in a few ways Shallow interest Short-term perspective Subordinate position 10 Maturity Activity Independence Capable of behaving in many ways Deep interest Long-term perspective Super ordinate position

Lack of self-awareness

Self-awareness and control

Argyris views that immaturity exists n individuals mainly because of organizational setting and management practices such as task specialization, chain of command, unity of direction, and span of management. In order to make individuals grow mature, he proposes gradual shift from the existing pyramidal organization structure to humanistic system; from existing management system to the more flexible and participative management. He states that such situation will satisfy not only their physiological and safety needs, but also will motivate them to make ready to make more use of their physiological and safety needs. But also will motivate them to make ready to make more use of their potential in accomplishing organizational goals.

11

C. THEORIES BASED ON EXPECTENCY OF HUMAN BEING 1. Vrooms Expectancy Theory One of the most widely accepted explanations of motivation is offered by Victor Vroom in his Expectancy Theory. It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve, and the outcomes/rewards they receive.

Thus, the key constructs in the expectancy theory of motivation are: i. Valence: Valence, according to Vroom, means the value or strength one places on a particular outcome or reward. ii. Expectancy: It relates efforts to performance. iii. Instrumentality: By instrumentality, Vroom means, the belief that performance is related to rewards. The Vrooms motivation can also be expressed in the form of an equation as follows: Motivation = Valence Expectancy Instrumentality Being the model multiplicative in nature, all the three variables must have high positive values to imply motivated performance choice. If any one of the

12

variables approaches to zero level, the possibility of the so motivated performance also touches zero level. However, Vrooms expectancy theory has its critics. The important ones are: i. Critics like Porter and Lawler labeled it as a theory of cognitive hedonism which proposes that individual cognitively chooses the course of action that leads to the greatest degree of pleasure or the smallest degree of pain. ii. The assumption that people are rational and calculating makes the theory idealistic. iii. The expectancy theory does not describe individual and situational differences. But the valence or value people place on various rewards varies. For example, one employee prefers salary to benefits, whereas another person prefers to just the reverse. The valence for the same reward varies from situation to situation. In spite of all these critics, the greatest point in the expectancy theory is that it explains why a significant segment of workforce exerts low level of efforts in carrying out job responsibilities. 2. Porter and Lawlers Expectancy Theory Porter and Lawlers theory is an improvement over Vrooms expectancy theory. They posit that motivation does not equal satisfaction or performance. The model suggested by them encounters some of the simplistic traditional assumptions made about the positive relationship between satisfaction and performance. They proposed a multi-variate model to explain the complex relationship that exists between satisfaction and performance. What is the main point in Porter and Lawlers model is that effort or motivation does not lead directly to performance. It is, in fact, mediated by abilities and traits and by role perceptions. Ultimately, performance leads to satisfaction. There are three main elements in this model. Briefly explained as follows, i. Effort: Effort refers to the amount of energy an employee exerts on a given task. How much effort an employee will put in a task is determined 13

by two factors [1] Value of reward and [2] Perception of effort-reward probability. ii. Performance: Ones effort leads to his/her performance. Both may be equal or may not be. However, the amount of performance is determined by the amount of labor and the ability and role perception of the employee. Thus, if an employee possesses less ability and / or makes wrong role perception, his/her performance may be low in spite of his putting in great efforts. iii. Satisfaction: Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards one achieves. If the amount of actual rewards meet or exceed perceived equitable rewards, the employee will feel satisfied. On the country, if actual rewards fall short of perceived ones, he/she will be dissatisfied. Rewards may be of two kind- intrinsic and extrinsic rewards. Examples of intrinsic rewards are such as sense of accomplishment and self-actualization. As regards extrinsic rewards, these may include working conditions and status. A fair degree of research support that the intrinsic rewards are much more likely to produce attitudes about satisfaction that are related to performance

14

There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite complex than other model of motivation. In fact, motivation itself is not a simple cause-effect relationship rather it is a complex phenomenon. Porter and Lawler have attempted to measure variables such as the values of possible rewards, the perception of effort-reward probabilities, and role perceptions in deriving satisfaction. They recommended that the managers should carefully reassess their reward system and structure. The

effort-performance-reward-satisfaction should be made integral to the entire system of managing men in organization

3.3

THEORIES USED IN OIL SECTOR 1. Maslows Need Hierarchy Theory 2. Herzbergs Motivation Hygiene Theory 3. McClelland Need Theory 4. McGregors Participation Theory 5. Porter and Lawlers Expectancy Theory 6. Vrooms Expectancy Theory

15

Theories in KOTAK MAHINDRA BANK

4.1 McClelland NEED THEORY USED IN KOTAK MAHINDRA BANKFOR MOTIVATION Management believed that needs are learned or acquired by the kinds of events people experienced in their environment and culture. They found people who acquire a particular need behave differently from those who do not have. This theory focuses on Murrays three needs; achievement, power and affiliation. a. Need for Achievement: Need for achievement is a behavior directed towards competition with a standard of excellence. McClelland found that people with a high need for achievement perform better than those with a 16

moderate or low need for achievement, and noted regional/ national differences in achievement motivation. For example offer for higher incentives, offer for gifts, etc.

b. Need for Power: The need for power is concerned with making an impact on others, the desire to influence others, the urge to change people, and the desire to make a difference in life. People with a high need for power are people who like to be in control of people and events. This results in ultimate satisfaction of man. For example offer for Promotion. c. Need for Affiliation: The need form affiliation is defined as a desire to establish and maintain friendly and warm relations with other people. 4.2 PERFORMANCE APPRAISALS AS MOTIVATION Eagle view on performance means appraising the performance; which could be first stepping stone forward achieving the objective of company. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. Performance appraisal can be either formal or informal. Usage of formal system schedule regular sessions in which an employees performance is discussed, and informal appraisals are unplanned. But most organizations use a formal appraisal system. BENEFITS OF PERFORMANCE APPRAISALS For the one who is, Appraisal: (by this he can) Know how they are working Know what is expected of them Receive recognition and praise. Be hard and respected. Receive help and encouragement

Appraiser: (by this he can) 17

 Improve their communications and relations with staff. Full understanding the performance contribution. Get to know performer better. Have a consistent approach for giving more effective.

The importance of Performance Appraisal: 1. It unifies the appraisal procedure. 2. It provides information, which is useful in making and forming important decisions. 3. It provides information form of record about rating. 4. It serves to stimulate and guide employees development. 5. A periodic and accurate appraisal constraint a supervision to be alert and competent in his work. Objectives of Performance Appraisal Success of an organization depends upon 3ps product, process and people. Here people play key role. And some people believe that human resource have capability to appreciate with time. Hence if organization wants to ride on the path of success, it must vigil on performance of its people. Performance appraisal system is based on psychological behavior of people which states that people perform for their feelings and responses and also the performance appraisal plans are designed to meet the needs of the organization and the individual. The future oriented performance appraisal is concerned with the identification of employees training on development needs and setting of new targets. 4.3 EMPLOYEE EMPOWERMENT Introduction: In simple words, empowerment is giving power .the word empower means to give the means, ability and authority. Definition: Empowerment is any process that provides greater autonomy through the sharing of relevant information and provision of control over factors affecting job performance. 18

A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organizations successes. Approaches to empowerment: The real problem is how to empower employees. Like other behavioral problems, the researchers have studied the problem and have suggested five approaches to empowerment. These are, 1. Helping employees achieve job mastery [Giving proper training, coaching and guide experience that will result in initial successes]. 2. Allowing more control. [Giving them discretion over job performance and then holding them accountable for outcomes]. 3. Providing successful role models [Allowing them observe peers who have already performed successfully on their jobs]. 4. Using social reinforcement and verbal and persuasion designed [Giving to praise, self encouragement confidence]. 5. Giving emotional support [Providing reduction of stress and anxiety through better definition, task assistance and honest caring]. 4.4 BARRIERS TO EMPOWERNENT: Of the several barriers to effective empowerment, the important ones are as follows, Some sort of organizational culture is found incongruent with the concept of employees empowerment. In these organizations the management philosophy is molded by the whims and fancies of the CEO. These CEOs are hardly enlightened with education but enriched by wealth. As such they follow dictatorship and run the administration with an iron hand. There are organizations where employees have no inclination towards the concept of empowerment Some employees may have fear in their minds that they will be punished if they will take initiative in the matter of empowerment. feedback raise

19

 Employees who are either under prolonged autocratic leadership or possessing external locus of control, with the security of having some one to tell them what to do and when to do, they will therefore resist empowerment. The superior who are power hungry never would like to part their authority with subordinate.

20

4.5 CUSTOMER RELATIONSHIP [CR] Meaning: It is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success.CR is an integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. CR embraces all aspects of dealing with prospects and customers, including the call center, sales force, marketing, technical support and field service. The primary goal of CR is to improve longterm growth and profitability through a better understanding of customer behavior. CR is both a business strategy and a set of discrete software tools and technologies, with the goal of reducing costs, increasing revenue, identifying new opportunities and channels for expansion, and improving customer value, satisfaction, profitability, and retention. There are three parts of application architecture of CR. 1. Operational CR: Operational CR means supporting the so-called "front office" business processes, which include customer contact (sales, marketing and service). 2. Analytical CR: In analytical CR, data gathered within operational CR are analyzed to segment customers or to identify cross- and up-selling potential. 3. Collaborative CR: Collaborative CR facilitates interactions with customers through all channels (personal, letter, fax, phone, web, email) and supports co-ordination of employee teams and channels. Advantages of CR:

Understanding the value of a particular customer during their Consistent structured and complete customer information,

entire life cycle

customer identification

Greater emphasis on customer retention through loyalty-building

programmes 21

Planning product cross-marketing strategies Measuring marketing campaigns and sales activities impact Optimizing, automation and control of marketing, sales and Rationalization of operations saving time and money

service processes

22

23

SCOPE OF STUDY:
This study is mainly confined to the customer of Kotak Mahindra bank The study helps to employee motivation theory in kotak Mahindra bank The study helps employee to evaluate himself

24

25

USEFULNESS AND IMPORTANCE OF STUDY

The importance and usefulness of the study is discussed as under: A great opportunity in banking sectors where the competition is

much increased. There are attractive financial facilities provided by, at a very low

interest rate than others. Opportunity in rural sector.

26

27

INTRODUCTION
Think Investment Think Kotak
Banks like Kotak Mahindra, standard chartered, ICICI, HDFC, and Citibank now bring your Bank Account and Debit card to your fingertips. With Mobile commerce, you can perform a wide range of query-based transactions from your Mobile Phone, without even making a call. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of over Rs.1, 800 crore and employs over 4,400 employees in its various businesses. With a presence in 82 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms) and Old Mutual (a large insurance, banking and asset management conglomerate). The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to growth and success.

28

1986 : Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987 1990 : Kotak Mahindra Finance Limited enters the Lease and Hire : The Auto Finance division is started Purchase market

1991 : The Investment Banking Division is started. Takes over FICOM, one of Indias largest financial retail marketing networks 1992 1995 : Enters the Funds Syndication sector : Brokerage and Distribution businesses incorporated into a

separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 1996 : The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groups entry into information distribution. 1998 2000 : : Enters the mutual fund market with the launch of Kotak Kotak Mahindra ties up with Old Mutual plc. for the Life business. 29 Mahindra Asset Management Company. Insurance

Kotak Securities launches kotakstreet.com - its on-line broking site. Formal

commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2003 : Kotak Mahindra Finance Ltd. Converts to bank

30

COMPANYS PROFILE
Established in 1984, The Kotak Mahindra Group has long been one of Indias most reputed financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the groups flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).This approval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to convert to a bank. The license authorizing the bank to carry on banking business has been obtained from the RBI in tune with Section 22 of the Banking Regulation Act 1949. KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement of Business on 11th Feb 1986. The bank customers have access to entire VISA network of 4500 ATMS in India and 800000ATMS worldwide accepted in more than 56000 establishments across India and 10 million worldwide. The customer also has access to over 800 ATMs with sharing arrangements with UTI BANK, of these 125 are in the NCR.

Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.

31

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities
Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. Kotak Securities Ltd. offers online and offline services based on well-researched expertise and financial products to non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 20,800 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps 32

customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.

BOARD OF DIRECTORS
Mr. K.M.Gherda Executive Chairman Mr. Uday Kotak Executive Vice Chairman and Managing Director Mr. Anand Mahindra Co Promoter of Kotak Mahindra Bank and Vice Chairman and Managing Director of Mahindra and Mahindra Mr. Cyril Shroff Co Promoter Mr. Pradeep N Kotak Agri Division of Kotak and Company Limited Dr. Shanker Acharya Mr. Shivaji Dam Managing Director Kotak Mahindra Old Mutual Life Insurance Limited Mr. C.Jayaram Executive Director Mr. Dipak Gupta Executive Director

Product Detail
33

Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak Mahindra group. The activities of the company being parallel to its objective are very wide and cover all the components of a Bank. The Basic area of Operations is the Banking business, other products are meant for the regular revenue generation. Being a Banking house, the company is in regular touch with Banking Accounts, Investment Services, Convenience Banking and Other Services. They offer complete solutions that address all your financial requirements, whether you're an individual or a firm. From everyday banking to long term investments their offering covers it all. This wide range of products is delivered to you with a genuine understanding of your specific need and warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products it's about working out a holistic, pragmatic solution that addresses your financial needs. Through their varied products,they commit themselves to becoming banker to the customer rather than being asset financier to our customers.

Banking Accounts
There are three types of banking account:

Savings Account
34

Current Account Term Deposit SAVINGS ACCOUNT

Choose from our range of Savings Accounts KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its customers according to their convenience and requirements .These savings accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs75000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. Thus the three account opening options in savings account are as mentioned above: EDGE SAVINGS ACCOUNT: Kotak Mahindra Banks Edge

Savings Account is a complete financial package customized to suit individual banking needs. Its constant endeavour is to enable regular financial transactions through online platform so that most of payments can be made directly through your account or card. Features & Benefits Wide ATM access through the Kotak Mahindra Bank Debit Card One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire balance at no extra charge!

Multiple Access Channels Access

35

An account through phone, mobile phone or internet to get information about account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time.

Free investment account

One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting your Bank Account. Besides this you get a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports.

Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.

36

 PRO SAVINGS ACCOUNT:

Kotak Mahindra Banks Pro Savings Account is an account packed with powerful features to provide a superior banking experience at a very comfortable balance requirement. They provide a relationship manager who will specifically take care of banking and investment needs.

Features & Benefits

Free ATM access all domestic VISA ATM network Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. no longer have to worry about locating your Bank or Partner Bank ATM Use the first VISA ATM that you spot, for cash withdrawal or balance enquiry transactions.

Multiple access channels

Access your account through phone, mobile phone or internet to get information on your account balance or track your transactions. You can even transfer funds through Phone Banking or Net Banking.

Free investment account

One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting bank account. Besides this get a consolidated view of all the mutual fund investments across schemes with updated returns status, latest NAV information and research reports.

37

Financial payments facilitated through the savings account

Use our free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time

Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.

Dedicated relationship manager

You get a one point contact for all your banking related queries and transactions. Your relationship manager will also help you with financial planning and sound investment decisions.

Free banking transactions

You can issue demand drafts or send cheques for collection on branch locations without any charge to your account.

38

 ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world of financial benefits and privileged banking transactions. The account carries benefits ranging from personal investment advisory services to concierge services to free banking transactions. Onewill find that this package of services and privileges is unmatched by any other savings account in the market.

Features & Benefits

Free access at all domestic and international VISA ATMs

No longer have to worry about locating your Bank or Partner Bank ATM - Use the first VISA ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any VISA ATM in India or abroad to withdraw cash or for balance enquiry.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to get information on account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

39

Use the free Kotak Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping. All this at the click of a mouse!

Quick and easy funds transfer

Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of this facility by walking into any of branches or by simple logging on to Net Banking. Also get a free multi-city cheque book so that money from your account is transferred to the beneficiary's account at any of branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches for no extra charge.

Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in the account, thereby providing maximum liquidity.

CURRENT ACCOUNT

40

Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether small/ mid size business or an enterprise spread across multiple locations in the country, would find a Current Account that's just designed for you. These Current accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, and more! Thus the three account opening options in savings account are as mentioned above:

Edge Current Account

In need of a well equipped bank account to keep pace in all the business endeavors. They offer the Kotak Edge Current Account, armed with Kotak 2Way Sweep and the entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current Account is the ideal way to make money work harder.

Features & Benefits

Multi City Banking Current account/s with Kotak Mahindra Bank will be recognized in every other branch. One can just walk into a Kotak Mahindra Bank branch in any of our branches across country to satisfy all the banking needs. 2 - Way Sweep* : Term Deposit linked Current Account

41

Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch location in India.

At-par Cheques
Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. All these at nominal costs.

Cheque Collection
All Outstation cheques, drawn on any of branch locations, are collected 'at nominal charge' for you. The strong network of correspondent banks enables us to collect cheques from 1600 locations across India at faster speed and minimal cost

Mobile Banking and Alerts

42

Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone. One can access all your standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated to you via SMS

You need a well equipped bank account to keep pace with you in the ever changing business scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and 'user-friendly' Convenience Banking facilities. The feature rich Kotak Pro Current Account is the ideal way to make your money work harder.

PRO Current Account

Key Features

Dedicated Relationship Manager Free Demand Drafts & Pay Orders> Free At Home Services Better Forex rates and Efficient Trade Services

ACE Current Account

In the need of a well equipped bank account to keep pace with you in the ever changing business scenario. They offer you the Kotak Ace Current Account, armed with Business benefits and exclusive Ace Privileges and an entire gamut of banking conveniences especially designed for you. The feature rich Kotak Ace Account is the ideal way to make money work harder

Term Deposits

43

Key Features

Ease and convenience of operation No penalty on pre-mature encashment

Liquidity through overdraft or sweep-in facility

Nomination facility available

Give your portfolio stability of returns and safety and liquidity. Invest in Kotak Bank Term Deposit. It offer attractive returns on term deposits and investing in them is really simple and convenient.

Features & Benefits

Ease and convenience of operation For the first time in India, New to Bank customer can also apply online for term deposit. An existing customer,can place a term deposit through Phone Banking or Net Banking. What's more, one can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of branches.

Liquidity through overdraft or sweep-in facility

Deposit will be available to you should you need them in case of an emergency. One can avail upto 85% overdraft against term by paying 2% 44

above deposit rate. This facility is available for deposits above Rs.50,000 for a tenure of 181 days or more. One can also choose to link term deposit to savings / current account, whereby if need be, term deposit will automatically be encashed to meet withdrawal requirement.

No penalty on pre-mature encashment

In case term deposit is pre-maturely encashed,one will earn interest at the rate prevailing on the date of deposit for the withdrawn amount.

Nomination facility available

One can avail this facility for each & every account that open with us i.e. nominate different persons for different term deposit accounts can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.

45

INVETSMENT SERVICES

Making your money grow At Kotak Mahindra Bank,can recognise that financial needs vary, not just amongst individuals, but across the different stages of your life. They have years of experience in helping people put together an investment portfolio that works best for them.

DEMAT

Key Features

Efficient depository services that allow you to hold your shares in convenient, "demat" formats Leverage opportunities in the stock-market when you spot them

It offers streamlined, efficient depository services that allow to hold shares in the convenient "demat" formats and leverage opportunities in the stock-market when you spot them Being a brokerage house, the company is in regular touch with the share market and its relative indexes like NSE &BSE, NCDEX. NSDL, CSDL. L e t s u n d e r s t a n d t h e r e l a t i v e t e r m s :

46

S EB I ( S t o c k E x c h a n g e b o a r d o f I n d i a )
It check out on NSE and BSE and all type of share trading (Both primary and secondary market)

NS E &B S E : - Kotak Mahindra Bank a l l o w s t o c o s t u m e r t o t r a d e

in share with NSE and BSE both (in primary and secondary market both). In BSE costumer can trade in 2452 stocks and in NSE costumer can trade in 933 companies. The index of NSE is Nifty and for BSE Sensex

NS D L AND CS D L
Kotak Mahindra Bank a l l o w t o c o s t u m e r t o i n v e s t i n m u t u a l f u n d and bonds. NSDL (National security depository limited) and CSDL (Central security depository limited check out on this type of investment

M CX AND NCD E X
Kotak Mahindra Bank a l s o a l l o w t o c o s t u m e r t o t r a d e i n c o m m o d i t y by MCX (Multi Commodity exchange) and NCDEX (National Commodity daily exchange. In NCDEX 55 commodity are to trade

PRODUCTS OFFERED BY KOTAK MAHINRA BANK

The following are the various products of Kotak Mahindra Bank: 47

 DEMAT & ON LINE TRADING ACCOUNT : The 3-in-1 account integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.

I NI T I A L PUB L I C O F FE RS ( I P O S )
In the above products we have discussed investment in equity through secondary markets .another way of investing in equity markets is through the primary market route .whenever a company comes out with an initial public offering you may choose to apply for the share. Based on number of valid application received, the company would then allot the share to applicants.

The offline way of investing in an IPO is by filling physical application forms, cheques. And submitting the forms through your broker. With KOTAK MAHINDRA BANK all you have to do is filling number of share on the site and submit.

D ERI V A T I V ES
Customers derivatives. Hedging the cash market position ideal for low risk profile. Taking advantage of arbitrage opportunity in equity and derivatives markets ideal for low risk profile with different types of risk profile can use

48

Taking a view on stock/index for as long as 3 month period medium risk profile Speculative trading-high risk profile

KOTAK MAHINDRA BANK offers online investment in future and option, with benefit of automated settlements and online risk monitoring system

Mutual Funds
Key Features

Assitance at every step of the investment process An experienced research team to analyse and research the Mutual Funds available in the market Portfolio assistance

Team analyses and researches the Mutual Funds available in the market, helping you make more informed decisions. The recommendations take into account all relevant factors including the investment philosophy of the Asset Management Company, portfolio quality, risk-adjusted returns and market trends. The Mutual funds on advisory list range form Debt to Equity funds and are drawn from top performing schemes of renowned Mutual Fund houses like Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship Manager will recommend the funds that suit the investment objectives. Instead of buying shares of different companies tracking the price movements performance of the company, growth prospects of the industries etc. and then taking your own buy/sell decision, you may consider making investment in equity/debt market through the mutual fund route. Mutual fund is a SEBI registered entity that pools the money of many 49

individuals investors to purchase the stocks, bond or other financial instruments .professional

Management and diversification are the two primary benefits of mutual fund investing. For beginners, or for customer who are unable to spend time on researching stocks themselves, mutual fund is an ideal route for a investment in equity. Investing in mutual funds offline

involves, tracking down the agents appointed by the mutual funds AMCs, filling lengthy forms, writing cheque, rushing to the office of the agents before the cut off timing to ensure that the desired NAV is allotted

Bancassurance
They offer a range of carefully selected insurance policies across the entire spectrum of life insurance products Relationship managers will analyze your insurance needs and develop the solution that works best for you. KOTAK INSURANCE has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors. The various plans offered by KOTAK INSURANCE are as follows:

Kotak Smart Advantage Plan Kotak Eternal Life Plans 50

Kotak Headstart Child Plans Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Capital Multiplier Plan Kotak Term Plan Kotak Preferred Term Plan

CO NV EN I E N C E B ANKI N G

Anywhere, Anytime Banking

In today's day and age time is money. You work hard and have a busy schedule. Doing banking should be easy and convenient and not add to worries. Kotak Mahindra Bank realize this and have specially tailored a wide range of value added products and services to make money work for you. These, coupled with the highest standard of customer care will make life simpler and easier.

Multiple Banking Channels

Today the technology driven banks are finding various means to reduce costs and reach out to as many customers as possible spread over a diverse area. This has led to using multiple channels of delivery of their products. 51

 ATM (Automatic Teller Machine) :

An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products also. An ATM does the basic function of a banks branch, i.e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs. Cost reduction is however possible only when these machines are used. In India, the average cash withdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the number of ATMs has increased since last year, it is not in sync with the number of cards issued. Also, there are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency Account holders of Kotak Mahindra Bank Saving Account having Visa Electron Debit Card can access other Banks ATM machines unlimited times per month for free, after that the Account holder has to pay nothing for the transaction. But also holders of ATM cards cannot access machines belonging to other Banks. The number of ATM machines installed by Kotak Mahindra Bank is 20 in Delhi and the All India tally is 156 machines. When this figure is compared to ICICI Bank which has thrice the number of machines in Delhi or HDFC Bank which has nearly twice the number of machines in Delhi, this is worrying for Kotak Mahindra Bank.

52

Growth In ATM Machine With Increased Use NAME OF BANK NUMBER OF ATM MACHINES (ALL INDIA BASIS) KOTAK MAHINDRA Bank ICICI Bank HDFC Bank IDBI CITIBANK HSBC AMN Amro UTI GTB 122 560 625 350 160 103 40 507 250 26 112 66 43 22 21 13 20 NUMBER OF ATM MACHINES (DELHI)

53

The Table below shows the number of ATM machines belonging to various banks in India:From the above table we can clearly see that HDFC Bank is the Bank which has highest number of ATM machines on All India basis, this is followed by ICICI Bank, then UTI. When we look at the concentration of machines in the Delhi Region we see that out of ICICI Banks 560 Machines 112 are located in Delhi representing 20%. The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.

Net Banking:
Net banking means carrying out banking transactions via the Internet. Thus the need for a branch is completely eliminated by technology. Also this helps in serving the customer better and tailoring products better suited for the customer. A customer can view his account details, transaction history, order drafts, electronically make payments, transfer funds, check his account position and electronically communicate with the bank through the Internet for which he may have wanted to visit the bank branch. Net banking helps a bank spread its reach to the entire world at a fraction of the cost

54

Phone Banking:
This means carrying out of banking transaction through the telephone. A customer can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also eliminates the customer of the need to visit the banks branch.

Mobile Banking:
Banks can now help a customer conduct certain transactions through the Mobile Phone with the help of technologies like WAP, SMS, etc. This helps a bank to combine the Internet and telephone and leverage it to cut costs and at the same time provide its customer the convenience. Thus it can be seen that tech savvy banks are tapping the entire above alternative channels to cut costs improve customer satisfaction

SMS Banking
Kotak Mahindra Bank's SMS Banking service enables you to access your bank account, investment account and demat account on your Mobile Phone. Now get latest update on your account balance, salary credits, large debits, large credits, holding value and much more, on your mobile anytime.

55

INTERNET BANKING
INTRODUCTION
The Internet banking is changing the banking industry and is having the major effects on banking relationships. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance.

DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. The primary drivers of Internet banking are: Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers

56

SAT ISFACTION LEVEL WITH INTERNET B ANKING

14 12 10 8 6 4 2 0 13

0 Very Satisfied Som ewhat Satisfied

0 Neither Satisfied nor Dissatisfied Som e what Dissatisfied

0 Very Dissatisfied

Internet Banking is the most technological advanced means to do Banking. Through this medium the Account holder can do various types of transactions without having to leave his Office/Residence. The Account holder has the convenience to do transaction no matter where he is in the world at any time of the day. Internet is the most cost effective medium of Banking from the point of view of the Banks; it costs a fraction to the Bank as compared to other mediums like Branch Banking or ATM. But this medium is not as favored a medium as it in the west , the reasons for this is that firstly , this is a relatively new concept in India , secondly , general perception that this is not safe , thirdly , computers and internet are not widely spread all over the country.

57

MAIN CONCERNS IN INTERNET BANKING

In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. 1. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that account information is protected from unauthorized access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system. 2 Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected. 3 Digital certification procedures provide the assurance that the data you receive is from the Infinity system.

STRATEGIC ALLIANCES ENTERED BY KOTAK MAHINDRA BANK NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology (IDRBT), a group established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch to hook up all of the country's 10,000-odd ATMs. The idea of establishing ATM interconnectivity through a national switch has been approved by the information chiefs of various Banks. The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -- almost 100,000 per day. 58

CASH NET
It is an Alliance between Citibank, Industrial Development Bank of India, Kotak Mahindra Bank and UTI Bank. This is the country's first independent shared ATM network. IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's settlement bank. Cash net will give access to more than 1,300 ATMs for more than 6 million debit cardholders of the member banks. The Alliance would constitute about a third of the total card base and 15 percent of the ATM base in the country.

Kotak Mahindra Bank and REDIFF.com

REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide online and offline banking and related services to the Indian consumer. The alliance will enable information on the entire range of the banks consumer banking products to be made available to the 6.4 million online customers of Rediff.com.

The services offered include detailed information on various deposits, loans and mortgages, credit cards, mutual funds and insurance products of the bank. Users will be able to directly interact with the bank and request for products online

59

OTHER SERVICES
BANKING HOURS
Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is the second most Frequent Point of Interaction with the Bank. The Average Banking Hours is a very important aspect associated with any Bank. In todays fast paced life where people who hold Accounts with the Bank are busy working it is important that they can find a way to visit the Bank without having to miss out on work. The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is open to the public for ten hours. These timings are convenient for especially those Account holders who are working, these people can visit the Bank after their Office finishes. Apart from the Average Banking Hours Kotak Mahindra Bank offers to its Account holders 24 Hour Branch, 365 Days Branch and the facility of Sunday Banking. Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in India, this is a big boon for people who cannot take the time out to visit the Bank during the normal working hours and is also very handy during emergencies.

The 365 Day Branch of Kotak Mahindra Bank is also unique and the only other Bank offering this service is ABN Amro , this Branch is open regardless of the fact that it is a Sunday or a public holiday. Sunday Banking is very useful for people who are busy throughout the week and the only day when they find the time is Sunday. Other Banks offering this service apart from Kotak Mahindra Bank are ABN Amro and CITIBANK.

60

Best Compliments Card the perfect gift

Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets your loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards, be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone the perfect gift! No Kotak Mahindra Bank account required Not restricted to a single brand or outlet - accepted at over 3 lakhs merchant establishments in India that accept Visa cards Can be used at your convenience - no need to spend the entire value in a single purchase Attractively packaged and ready-to-gift Available at all Kotak Mahindra Bank branches Valid for two years from date of issue of card

61

OBJECTIVES OF THE STUDY

The objectives of this project are as under: 62

1. T o find out What motivates employees most? 2. to find out Do you have proper materials and equipment you need to do work right ? 3. To find out Do you give your opinion and it seems to be counted? 4. To find out In the last one year have you had any opportunity at work to grow and learn? 5. To find out find lack of communication between you and your superiors ?

63

LITERATURE REVIEW
This Summer Training Project Report has been conducted on the topic titled EMPLOYEE MOTIVATION IN KOTAK MAHINDRA BANKas the part of the 64

summer training project in various department of the company. The findings of several investigations suggest that Employee MotivationL is positively correlated with high production the results of a study by Katz and Harman (1947) indicate that workers satisfied with their job produce more of course some other studies also do indicate that not always and in all cases in high production due to Employee MotivationL. However it cannot be that production is partly a function of Employee MotivationL. Employee MotivationL is personal and individual feelings.

65

RESEARCH DESIGN

66

Research in common parlance refers to search of knowledge. In other words, research means a search for facts-answers to questions and solution to the problem. It is a purposive investigation. It is an organized inquiry. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research Design is the framework or plan for a study that is used as a guide in collecting and analyzing the data. It is blueprint that is followed in completing a study. In other words, it is the framework of the project that stipulates what information is to be collected from which sources by what procedures. Designing is preliminary step in every activity. It provides a picture for the whole before starting of the work. RESEARCH PROCESS FOLLOWED
FF

Review the Literature

Review concepts & theories Define research problem Review previous research findings Formulate hypothesis Design research (including sample design

Collect Data

Analyze Data

Interpret & Report Writing

Where F = feed back [Helps in controlling the sub-system to which it is transmitted] FF = feed forward [Serves the vital function of providing criteria for evaluation]

kotak Mahindra bank 67

METHODOLOGY ADOPTED
Research methodology may be understood as all those methods/techniques that are used for conduction of research. Thus it refers to the methods the researchers use in performing research operations. In other words, all those methods, which are used by the researchers during the course of studying his research problem, are termed as research methods. Since the object of research is to arrive at a solution for a given problem, the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. 1. RESEARCH DESIGNThe study is all about the employee motivation of KOTAK MAHINDRA BANK.. The basics of the study is to inculcate the satisfaction level of the employees regarding EMPLOYEE MOTIVATION procedure that is adopted by the company to train its employees. The data collection took place with the help of the primary i.e. questionnaires as well as the secondary data. Exploratory design is used for this research. 2. SAMPLE DESIGN UNIVERSE OF STUDY- Universe cover the whole defined finite on which the study is the based. The whole study is carried in KOTAK MAHINDRA BANK LTD. the universe of the study was i.e. employees . SAMPLING UNITES- The sampling units of my research study was within the organization that is KOTAK MAHINDRA BANK LTD. SOURCE LIST- The research source list is all the employees working in the KOTAK MAHINDRA BANK LTD.. SAMPLE SIZE- Sample size of my research is 50 samples. SAMPLE METHODS- The sample has been collected by the questionnaire, and through observation. Random sampling is used.

68

3. TOOLS FOR DATA COLLECTION-In this study; used

primary data

through questionnaires and as well as observational methods. Secondary data through web sites, technical & trade journals, books magazines & newspapers. .

69

70

DATA ANALYSIS AND INTERPRETATION

The data, after collection, has to be processed and analyzed in accordance with the objective laid down for the purpose of the research work. This is essential for ensuring that we have all relevant data for making contemplated comparisons and analysis. The term analysis refers to the computation of certain measures like editing, coding, classification and tabulation of collected data so that they are amenable to analysis along with searching for patterns of relationship that exist among data-groups. The term interpretation refers to the task of drawing inferences from the collected data after an analytical and/or experimental study. In fact, it is a search for broader meaning of research findings. There are various methods of analyzing the data. But in this project work, I used Bar charts & Pie charts for analyzing the collected data, which is prepared by using Excel Sheet. In this project work, Pie charts & Bar charts are prepared with the help of collected data, which is being collected through [your sources]. The graphical presentation of the data is helpful in understanding the each & every aspect of the collected data very easily.

71

DATA ANALYSIS The following observations are done on the basis of responses got from all employees. The questionnaire provided to employees is given in Chapter 10 ANNEXTURE. 1. Respondent by age. Objective: To know different motivational theories to be used on different age group of employees, because same motivational technique can not motivate all employees varying in age group. Sr. No. 1 2 3 4 Age Group 15-25 25-35 35-45 45 above Total Graphical Representation: 50 100% Respondent 9 29 10 and 2 Percentage 18 % 58 % 20 % 4%

Conclusion: Maximum employee belongs to 25-35 age group as they are highly job oriented so this age group needs maximum motivation to improve their performance. 72

2. Respondent by Date of Joining.

73

Objective: To know the experience and stability of employee in KOTAK MAHINDRA BANK Sr. No 1 2 3 Date of joining 2010-2011 2009-2010 2008 and before Total Respondents 40 10 0 50 Percentage 80 % 20 % 0% 100%

Graphical Representation:

Conclusion: With this graph we get to know that maximum employee joined KOTAK MAHINDRA BANK in the year of 2010 2011.

3. Respondent by Department.

74

Objective: To know number of employees working in different department, so that we could get to know motivational hierarchy used in KOTAK MAHINDRA BANK. Sr. No 1 2 3 Department HRM Operation Sales Total Graphical Representation: Respondents Percentage 1 2 47 50 2% 4% 94 % 100%

Conclusion: According to above graph 94% employees are working in sales department and 4% in operational level and left 2% in HR department.

4. How do employees feel about company?

75

Objective: To know what an employee feels as an employee about company which will decide Employee Motivation in KOTAK MAHINDRA BANK and affiliation of employees. Sr. No 1 Response Responden ts They feel safe, valued and taken care 50 off 2 Taken advantage, dispensable and 0 invisible Total Graphical Representation: 50 100% 0% 100 % Percentage

Conclusion: Employees feel that they are safe, valued and taken care off by there company.

76

5. Are you free to find your own solutions? Objective: To know whether employees have freedom to solve their problem by themselves or not, which will decide the empowerment techniques used by the company because empowering authority and responsibility is also one kind of motivation technique.

Sr. No 1 2

Response Yes No Total

Respondents 50 0 50

Percentage 100 % 0% 100%

Graphical Representation:

Conclusion: All employees have freedom to solve their small problem with their own relevant ideas.

77

6. Where you found yourself after one year? Objective: To know future planning of employee with the company, this will determine their determination toward their job and life. This will be evaluated by their present performance. Sr. No 1 2 Response Promoter Constant Total Graphical Representation: Respondents 50 0 50 Percentage 100 % 0% 100%

Conclusion: In this graph we can see that all employees want to be promoted after a year that shows their positive attitude towards their work.

78

7. Do you know your performance appraisal? Objective: To know the awareness of an employee towards his performance appraisals, this will determine his attitude towards his achievement. Sr. No 1 2 Response Yes No Total Respondent s 50 0 50 Percentage 100 % 0% 100%

Graphical Representation:

Conclusion: This graph shows that all employees know about awards which are given to them on their performance which makes their performance more batter.

8. Does employee [you] feel empowered? 79

Objective: To know whether employees have any rights to take different decision at their level or the decisions are only compiled. This will determine freedom of work towards his job.

Sr. No 1 2

Response Yes No Total

Respondents 50 0 50

Percentage 100 % 0% 100%

Graphical Representation:

Conclusion: In this figure we can see that employees know the importance of power and wanted to be empowered.

80

9. Are you satisfied with your work load? Objective: To know whether employees are satisfied with the work load they have, which will determine their attitude towards work. Sr. No 1 2 Responses Yes No Total Respondents 40 10 50 Percentage 80 % 20 % 100%

Graphical Representation:

Conclusion:

80% employees are satisfied with their work and 20% are

unsatisfied they feel over workload.

81

10. What motivates you most? Objective: This will determine how an employee can be motivated more so as to make his work done effectively. This will also tells about expectation of employee from his job.

Sr. No 1 2

Response Performance Employee Motivation BANK Financial Rewards Total in KOTAK MAHINDRA

Respondents 15 5

Percentage 30 % 10 %

30 50

60 % 100%

Graphical Representation:

Conclusion: In this graph as we can see employees feel that financial reward give them max motivation as 30% of them feel that performance motivate them more but 60% employees feel that financial reward motivate them more and 10% of them think that Employee Motivation in KOTAK MAHINDRA BANK motivates them more than anything else.

82

FINDINGS
83

After analyzing & interpreting the data received from the respondents, following findings have been drawn: Feelings that determine employees moral are as 50% feel that supportive and simulative leadership improve their moral but 40% of them think that expectations to success towards attainment of the goal affect their moral and 10% think that need for a clear goal or objective to be achieved motivates their moral. 50% employees feel that promotion motivate them a lot but 40% of them think that money motivates them more and 10 % employees get motivated more when they get gift vouchers. 60% employees are highly satisfied with their performance appraisals whereas 40%of them are just satisfied and say that it should be more transparent

84

RECOMMENDATIONS & SUGGESTIONS

85

1. Number of Branches should be increased covering a wider area in various states. 2. A wide publicity to be given about the organization and its products through various means of communications. 3. More number of training and educational programmes should be included in working.

4. Developing a learning culture through continuous learning process.

86

87

CONCLUSION
On the basis of the findings obtained from the study we may conclude that On the basis of survey conducted In KOTAK MAHINDRA BANK, Mathura Refinery, entitled on employees motivation, we conclude that:-The general techniques of motivation to motivate employees are based on Human Needs, Human Nature and Expectancy of Human Being. The Human Need theory consists of Maslows Need Hierarchy Theory, Herzbergs Motivation Hygiene Theory, and McClelland Need Theory. Theories depending of Human Nature consist of McGregors Participation Theory, Urwicks Theory Z and Argyriss Theory. And theories depending of Human Being consist of Porter and Lawlers Expectancy Theory, Vrooms Expectancy Theory. Amongst these motivational theories insurance sector uses following theories Maslows Need Hierarchy Theory, Herzbergs Motivation Hygiene Theory, McClelland Need Theory, McGregors Participation Theory, Porter and Lawlers Expectancy Theory, Vrooms Expectancy Theory. From these motivational theories KOTAK MAHINDRA BANK uses only McClelland Need Theory which is further categorized as Need for Achievement, Need for Power and Need for Affiliation. , it is learnt that the company is a world of good as compared with other competitors available in the market for a considerable period of time. However it is noted that the KOTAK MAHINDRA BANK can grow manifold in the years to come if it adopts the points mentioned under the heading of suggestion of this project report.

88

89

LIMITATIONS OF THE STUDY

All the employees were extremely helpful. But then also there were certain limitations in the study. They are as follows: TIME CONSTRAINT: Although the HR officers were willing to help the trainees as much as possible but in spite of that they could not devote much of their office time to us regularly, because of their own duties and responsibilities for the company. CONFIDENTIALITY: Confidentiality regarding cooperation policies was also a hindrance in the study. UNCOVERING:To make Questionnaire of manageable size, some of the inputs related to welfare measures could not be dealt upon.

90

91

REFERENCES
HR Training Coordinator:BOOKS REFERRED: Human Resource Management. (By L.M. Prasad) (By Mr.Pradeep Mishra, Officer (A&W)

Human resource Management. & Personal Management. Ashwathapa)

92

93

MOTIVATIONAL THEORIES USED IN KOTAK MAHINDRA BANK STAFF QUESTIONNAIR Name: Address: ______________________________________________________________ Educational __________ Department: ___________________________________ Date of Joining: _________ 1. How do employees feel about company? a. They feel safe, loyal, valued and taken care off b. Taken advantage, dispensable and invisible 2. Are you free to find your own solutions? 3. Where you found yourself after one year? a. Promoter b. Constant 4. Do you know your performance appraisal? / No] 5. Does employee [you] feel empowered? 6. Are you satisfied with your work load? 7. What motivates you most? a. Performance 94 [Yes / No] [Yes / No] [Yes [Yes / No] Qualification: ________________________ Marital Status: _______________________ DOB: ___________ Designation: -

____________

b. Employee Motivation in KOTAK MAHINDRA BANK c. Financial Rewards 8. Do you know what is expected from you and are you fulfilling it. [Yes/No] 9. Do you have proper materials and equipment you need to do work right? [Yes / No]

10. At work do you have the opportunity to do what you can do best every day? 11. Do you give your opinion and it seems to be counted? 12. The thing which demoralize you. a. Work load b. Working Environment c. Competition in market 13. Comment of satisfaction level for each of the following as highly satisfied, satisfied and dissatisfied. a. Work environment b. Working hours c. Work load high] e. Availability of technology, equipment and infrastructure [low, medium, high] 14. In the last year have you had any opportunity at work to grow and learn? [Yes / No / NA] 15. Are your associate are committed in doing equality work (Joint work)? [Yes / No] 16. Do you have inter-departmental meetings? [Yes / No] d. Nature and concept of load [low, medium, high] [low, medium, high] [low, medium, high] [low, medium, [Yes / No] [Yes / No]

95

17. Do you find lack of communication between you and your superiors? [Yes / No] 18. Do you have regular seminar workshops and live projects for learning and development? [Yes / No] [Yes / No] 20. What determines yours moral? a. Feeling of togetherness b. Need for a clear goal or objective to be achieved c. Supportive and simulative leadership d. Expectation of success towards to attainment of the goal 21. In motivation which kind of rewards can motivate you? a. Money b. Promotion c. Tours with family d. Gift voucher 22. Can you rate the effectiveness of the performance appraisal system in providing you with clear agreed training and development? a. Highly satisfied b. Satisfied c. Dissatisfied 23. What is the need of motivating employees in an organization? From the point of view of employees? a. Psychological needs b. Self actualization need c. Esteem need d. To increase the productivity 24. Think of a person, in the past, did an excellent job of motivating you. Which of the following approaches did they use? a. ERG (Expectation Readiness and Growth) Needs b. Lower - order or higher order needs 96 19. Did you have any promotion till the date from the joining of organization?

c. Behavioral modifications d. Motivational or maintenance factor

97