ACKNOWLEDGEMENT

We would like to express our sincere gratitude to all the people who have contributed towards the successful completion of our project. We would like to extend our heartfelt thanks to Mr. Deepak Kumar Chauhan,Senior Investment Manager of HDFC Bank for giving us his valuable time and support to interact with the employees of the company and providing us with the right platform to carry out our research smoothly. Last but not the least, we would like to express our sincere gratitude to our Organizational Behavior faculty, Mrs. Anupama Raina, for nurturing a congenial yet competitive environment in the class which motivates all students to work in the best of their abilities. We are grateful to her for providing us with right guidance and expertise that has led to the timely completion of the project.

COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". They realised that only a single-minded focus on product quality and service excellence would help them get there. Today, they are proud to say that they are well on our way towards that goal. It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally. HDFC bank has been showered with a number of awards, consisting of The Best Employer Award in 2007-2008.

ABOUT THE SUBJECT

Organizational studies, organizational behavior, and organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups - act within organization..

Organizational studies encompasses the study of organizations from multiple viewpoints, methods, and levels of analysis. Whenever people interact in organizations, many factors come into play. Modern organizational studies attempt to understand and model these factors. Like all modernist social sciences, organizational studies seeks to control, predict, and explain.

A HISTORY OF THE SUBJECT

The Greek philosopher Plato wrote about the essence of leadership. Aristotle addressed the topic of persuasive communication. The writings of 16th century Italian philosopher Niccol Machiavelli laid the foundation for contemporary work on organizational power and politics. In 1776, Adam Smith advocated a new form of organizational structure based on the division of labour. One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership. Soon after, Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees. In the 1920s, Australian-born Harvard professor Elton Mayo and his

colleagues conducted productivity studies at Western Electric's Hawthorne plant in the United States. After the First World War, the focus of organizational studies shifted to analysis of how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations. Prominent early scholars included Chester Barnard, Henri Fayol, Mary Parker Follett, Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom.

MAIN CONTRIBUTORS TO THE FIELD

Frederick Winslow Taylor (1856-1915): Taylor was the first person who attempted to study human behavior at work using a systematic approach. Taylor studied human characteristics, social environment, task, physical environment, capacity, speed, durability, cost and their interaction with each other. His overall objective was to reduce and/or remove human variability. Taylor worked to achieve his goal of making work behaviors stable and predictable so that maximum output could be achieved. He relied strongly upon monetary incentive systems, believing that humans are primarily motivated by money. He faced some strong criticism, including being accused of telling managers to treat workers as machines without minds, but his work was very productive and laid many foundation principles for modern management study.

Elton Mayo: Elton Mayo, an Australian national, headed the Hawthorne Studies at Harvard. In his classic writing in 1931, Human Problems of an Industrial Civilization, he advised managers to deal with emotional needs of employees at work. Mary Parker Follett: Mary Parker Follett was a pioneer management consultant in the industrial world. As a writer, she provided analyses on workers as having complex combinations of attitude, beliefs, and needs. She told managers to motivate employees on their job performance, a "pull" rather than a "push" strategy. Douglas McGregor: Douglas McGregor proposed two theories/assumptions, which are very nearly the opposite of each other, about human nature based on his experience as a management consultant. His first theory was Theory X, which is pessimistic and negative; and according to McGregor it is how managers traditionally perceive their workers. Then, in order to help managers replace that theory/assumption, he gave Theory Y which takes a more modern and positive approach. He believed that managers could achieve more if managers start perceiving their employees as self-energized, committed, responsible and creative beings. By means of his Theory Y, he in fact challenged the traditional theorists to adopt a developmental approach to their employees. He also wrote a book The Human Side of Enterprise in 1960; this book has become a foundation for the modern view of employees at work.

CURRENT SCENARIO:

Organizational behaviour is currently a growing field. Organizational studies departments generally form part of business schools, although many universities also have industrial psychology and industrial economics programs. The field is highly influential in the business world with practitioners like Peter Drucker and Peter Senge, who turned the academic research into business practices. Organizational behaviour is becoming more important in the global economy as people with diverse backgrounds and cultural values have to work together effectively and efficiently. It is also under increasing criticism as a field for its ethnocentric and pro-capitalist assumptions During last 20 years organizational behavior study and practice has developed and expanded through creating integrations with other domains:

Anthropology became an interesting prism to understanding firms as communities, by introducing concepts like Organizational culture, 'organizational rituals' and 'symbolic acts' enabling new ways to understand organizations as communities.

Leadership Understanding the crucial role of leadership at various level of an organization in the process of change management.

Ethics and their importance as pillars of any vision and one of the most important driving forces in an organization.

ORGANIZATIONAL CULTURE
Organizational culture is a concept in the field of Organizational studies and management which describes the attitudes, experiences, beliefs and values of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. Conversely, there is weak culture where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy. Where culture is strongpeople do things because they believe it is the right thing to dothere is a risk of another phenomenon, Groupthink. "Groupthink" was described by Irving L. Janis. He defined it as "...a quick and easy way to refer to a mode of thinking that people engage when they are deeply involved in a cohesive ingroup, when members' strivings for unanimity override their motivation to realistically appraise alternatives of action." This is a state where people, even if they have different ideas, do not challenge organizational thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on a central charismatic figure in the organization, or where there is an evangelical belief in the organizations values, or also in groups where a friendly climate is at the base of their identity (avoidance of conflict). In fact groupthink is very common, it happens all the time, in almost every group.

Members that are defiant are often turned down or seen as a negative influence by the rest of the group, because they bring conflict. Innovative organizations need individuals who are prepared to challenge the status quobe it groupthink or bureaucracy, and also need procedures to implement new ideas effectively.

ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. An organization's effectiveness is also dependent on its communicative competence and ethics. The relationship between these three is simultaneous. Ethics is a foundation found within organizational effectiveness. An organization must exemplify respect, honesty, integrity and equity to allow communicative competence with the participating members. Along with ethics and communicative competence, members in that particular group can finally achieve their intended goals. Organizational effectiveness is an abstract concept and is basically impossible to measure. Instead of measuring organizational effectiveness, the organization determines proxy measures which will be used to represent effectiveness. Proxy measures used may include such things as number of people served, types and sizes of population segments served, and the demand within those segments for the services the organization supplies. For instance, a non-profit organization which supplies meals to house bound people may collect statistics such as the number of meals cooked and served, the number of volunteers delivering meals, the turnover and retention rates of

volunteers, the demographics of the people served, the turnover and retention of consumers, the number of requests for meals turned down due to lack of capacity (amount of food, capacity of meal preparation facilities, and number of delivery volunteers), and amount of wastage. Since the organization has as its goal the preparation of meals and the delivery of those meals to house bound people, it measures its organizational effectiveness by trying to determine what actual activities the people in the organization do in order to generate the outcomes the organization wants to create. Activities such as fundraising or volunteer training are important because they provide the support needed for the organization to deliver its services but they are not the outcomes per se. These other activities are overhead activities which assist the organization in achieving its desired outcomes.

EMPLOYEE ENGAGEMENT
Employee engagement is a concept that is generally viewed as managing discretionary effort, that is, when employees have choices, they will act in a way that furthers their organization's interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. Engaged employees care about the future of the company and are willing to invest the discretionary effort. Engaged employees feel a strong emotional bond to the organization that employs them.

FACTORS AFFECTING EMPLOYEE ENGAGEMENT:

Employee perceptions of job importance.

Employee clarity of job expectations. "If expectations are not clear and basic materials and equipment not provided, negative emotions such as boredom or resentment may result, and the employee may then become focused on surviving more than thinking about how he can help the organization succeed."

Career advancement/improvement opportunities. "Plant supervisors and managers indicated that many plant improvements were being made outside the suggestion system, where employees initiated changes in order to reap the bonuses generated by the subsequent cost savings."

Regular feedback and dialogue with superiors. "Feedback is the key to giving employees a sense of where theyre going, but many organizations are remarkably bad at giving it. "'What I really wanted to hear was 'Thanks. You did a good job.' But all my boss did was hand me a check.'

Quality of working relationships with peers, superiors, and subordinates. "...if employees' relationship with their managers is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee engagement is a direct reflection of how employees feel about their relationship with the boss."

Perceptions of the ethos and values of the organization. Effective Internal Employee Communications - which convey a clear description of "what's going on". "'If you accept that employees want to be involved in what they are doing then this trend is clear (from small businesses to large global organizations). The effect of poor internal communications is seen as its most destructive in global organizations which suffer from employee annexation - where the head office in one country is buoyant (since they are closest to the action, know what is going on, and are heavily engaged) but its annexes (who are furthest away from the action and know little about what is happening) are dis-engaged. In the worst case, employee annexation can be very destructive when the head office attributes the annex's low engagement to its poor performance... when its poor performance is really due to its poor communications.

OBJECTIVES OF THE STUDY

The objective of the study is the purpose for which the study is conducted and it is undertaken. The objective decides the procedure and the path which will be taken for the study. The objective is the base on which the foundation of the study is built. The objective should be decided with utmost concentration and due consideration. The objective of our study is:

To analyze the organizational culture in HDFC Bank To analyze the employee engagement in HDFC Bank To analyze organizational effectiveness in HDFC Bank

METHODOLOGY OF THE STUDY

Methodology refers to more than a simple set of methods; rather it refers to the rationale and the philosophical assumptions that underlie a particular study. This is why scholarly literature often includes a section on the methodology of the researchers. For the purpose of this study, the type of research undertaken was primary research, which comprised of collecting information through questionnaires from the selected sample. Primary research is more detailed and it involves getting close information from the sample directly.

PROCEDURE OF THE STUDY:

The study was conducted by getting questionnaires filled by HDFC Bank employees. Then the data collected was tabulated and various tools like SPSS and Microsoft Excel were used for the quantification of the data collected.

INSTRUCTIONS GIVEN `TO SAMPLE INDIVIDUALS: The employees of HDFC Bank, who were selected as a part of the sample, were told to fill the questionnaires with legitimate details in the questionnaire. The sample individuals were also requested to give the true and fair picture of the organization and the working environment of the organization, as this would help us in getting a fair picture of the organization and help us get the true findings from the study.

DATA COLLECTED, QUANTIFICATION AND INFERENCE

QUESTIONNAIRE 1EMPLOYEE ENGAGEMENT QUESTION -- 1

Does your work group plan together and coordinate its efforts?

Frequency indifferent Agree strongly agree Total 1 8 1 10

Percent 10.0 80.0 10.0 100.0

Valid Percent 10.0 80.0 10.0 100.0

Cumulative Percent 10.0 90.0 100.0

INFERENCE: From the above findings of the question, the inference that can be drawn is
that most of the employees think or consider that there is planning and coordination among the various workgroup of the organization. 80% of the total sample agree that there is planning and coordination among the various workgroups in an organization.

QUESTION-- 2
Does your work group make good decisions and solve problems well?

Frequency Indifferent Agree strongly agree Total 1 6 3 10

Percent 10.0 60.0 30.0 100.0

Valid Percent 10.0 60.0 30.0 100.0

Cumulative Percent 10.0 70.0 100.0

INFERENCE: The inference drawn is that a majority of the employees feel that their
workgroup makes good decisions and solves problems well. but there is no one who is against this statement.

QUESTION -- 3
Is information about important events and situations shared within your workgroup?

Frequency Valid disagree indifferent Agree strongly agree Total 1 2 3 4 10

Percent 10.0 20.0 30.0 40.0 100.0

Valid Percent 10.0 20.0 30.0 40.0 100.0

Cumulative Percent 10.0 30.0 60.0 100.0

INFERENCE: The findings of this question show us that information in the organization is
shared in the organization to an extent. 40% strongly agree. 30% agree, and there is also a major part(30%) of the employees who disagree or are indifferent.

QUESTION -- 4
Does your workgroup feel responsible for meeting its objectives successfully?

Frequency Valid indifferent disagree strongly disagree Total 2 6 2 10

Percent 20.0 60.0 20.0 100.0

Valid Percent 20.0 60.0 20.0 100.0

Cumulative Percent 20.0 80.0 100.0

INFERENCE: The inference that can be drawn is that the workgroup does not feel
responsible about achieving its objectives successfully, but there is also a combined chunk of employees(40%), who think that the workgroups do feel responsible to meet the objectives successfully.