Kaushik Edited

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PROJECT REPORT

ON

METHODS OF TRAINING IN KOTAK MAHINDRA

BANK

Submitted in Partial Fulfillment of the Requirement for the

Post Graduate Diploma of Management

GURU NANAK INSTITUTE OF MANAGEMENT

Submitted To:

Submitted by:


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Mrs. Babita Mehra Ruchi

Kaushik Assistance Professor(GNIM)

Roll no:6145

ACKNOWLEDGEMENT

The study, on Methods of Training in Kotak Mahindra Bank was

undertaken under the guidance of Mrs. Babita Mehra, I am

grateful to her for her guidance and support in successful

completion of the study. I am particularly indebted to her for

being patient and encouraging me to complete the project.

I would like to acknowledge my gratefulness to all those who went out of

their way to help me in completing the project.

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ABSTRACT

Training is a learning process that involves the acquisition of knowledge,

sharpening of skills, concepts, rules, or changing of attitude and

behaviors to enhance the performance of employees. Training is activity

leading to skilled behavior

This study compares traditional and nontraditional training techniques

with regard to computer related training. Its purpose was to determine

which training methods could best be utilized in computer related training

to maximize a trainee's retention of material and transfer of learning. A

field experiment was conducted using two hundred members of active

duty U.S. Naval Construction Battalion as subjects. Evaluation of trainees

included a pre-training screening, post-training evaluation (immediately

after training), and a follow-up session (four weeks after the post-training

session) utilizing previously validated instruments. Training treatments

included instruction (lecture), exploration (independent study), and a

nontraditional techniquebehavior modeling (an enhanced combination

of the other two methods). Performance outcomes were operationalized

using hands-on task performance and comprehension of the computersystem as dependent variables. End-user satisfaction with the computer

system was also measured. Two covariates, cognitive ability and system

use, were also introduced into the study. The use of hands-on training

methods, especially behavior modeling, resulted in superior retention of

knowledge, transfer of learning, and end-user satisfaction. Cognitive

ability failed to be a good predictor of trainee success but a connectionwas established between training methodology, system use, and end-user

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TABLE OF CONTENTS

ACKNOWLEDGEMENT.......................................................................... i

ABSTRACT.........................................................................................................

..

CHAPTER1

INTRODUCTION.

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CHAPTER2

CONCEPTUALFRAMEWORK...

8-44

CHAPTER3 RESEARCH OBJECTIVE AND METHODOLOGY 45-48

CHAPTER-4 PROFILE OF THE BANK 49-58

CHAPTER5 DATA ANALYSIS AND INTERPRETATION .. 59

CHAPTER-6 CONCLUSION & RECOMMENDATIONS. 60-64

BIBLIOGRAPHY.......................................................................................... 65-66

APPENDIX.................................................................................................... 67-72

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CHAPTER-1

INTRODUCTION TO BANKING

(i) Early history

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India which started in 1786, and the Bank of Hindustan, both of which are

now defunct. The oldest bank in existence in India is the State Bank of India, which originated

in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal.

This was one of the three presidency banks, the other two being theBank of Bombay and theBank of Madras, all three of which were established under charters from the British East India

Company. For many years the Presidency banks acted as quasi-central banks, as did their

successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon

India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a

consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and

still functioning today, is the oldest Joint Stock bank in India. It was not the first though. Thathonour belongs to the Bank of Upper India, which was established in 1863, and which survived

until 1913, when it failed, with some of its assets and liabilities being transferred to the

Alliance Bank of Simla.

When the American Civil Warstopped the supply of cotton to Lancashire from the Confederate

States, promoters opened banks to finance trading in Indian cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period failed. The

depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking

in India remained the exclusive domain of Europeans for next several decades until the

beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire

d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;

branches in Madras andPondicherry, then a French colony, followed.HSBCestablished itself

in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of

the British Empire, and so became a banking centre.

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TheBank of Bengal, which later became the India. The first entirely Indian joint stock bank

was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next

was the Punjab National Bank, established in Lahorein 1895, which has survived to the present

and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period

of stability. Around five decades had elapsed since theIndian Mutiny, and the social, industrial

and other infrastructure had improved. Indians had established small banks, most of which

served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks

and a number of Indian joint stock banks. All these banks operated in different segments of the

economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign

trade. Indian joint stock banks were generally undercapitalized and lacked the experience and

maturity to compete with the presidency and exchange banks. This segmentation let Lord

Curzon to observe, "In respect of banking it seems we are behind the times. We are like some

old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome

compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi

movement. The Swadeshi movement inspired local businessmen and political figures to found

banks of and for the Indian community. A number of banks established then have survived to

the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara

Bankand Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina

Kannada and Udupi district which were unified earlier and known by the name South Canara

( South Kanara ) district. Four nationalized banks started in this district and also a leading

private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian

Banking".

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(ii)Structure of banking system

(iii) Post-independence

Thepartition of India in 1947 adversely impacted the economies ofPunjab and West Bengal,

paralyzing banking activities for months. India's independence marked the end of a regime of

theLaissez-fairefor the Indian banking. The Government of India initiated measures to play an

active role in the economic life of the nation, and the Industrial Policy Resolution adopted by

the government in 1948 envisaged a mixed economy. This resulted into greater involvement of

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the state in different segments of the economy including banking and finance. The major steps

to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,

and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank

of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing

bank could be opened without a license from the RBI, and no two banks could have

common directors. However, despite these provisions, control and regulations, banks in

India except the State Bank of India, continued to be owned and operated by private

persons. This changed with the nationalization of major banks in India on 19 July 1969.

Nationalization

By the 1960s, the Indian banking industry had become an important tool to facilitate the

development of the Indian economy. At the same time, it had emerged as a large employer, and

a debate had ensued about the possibility to nationalize the banking industry. Indira Gandhi,

the-then Prime Minister of India expressed the intention of the GOI in the annual conference of

the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."

The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden,

and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect

from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described

the step as a "masterstroke of political sagacity." Within two weeks of the issue of the

ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of

Undertaking) Bill, and it received thepresidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery. With

the second dose of nationalization, the GOI controlled around 91% of the banking business of

India. Later on, in the year 1993, the government merged New Bank of India with Punjab

National Bank. It was the only merger between nationalized banks and resulted in the reduction

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of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized

banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalization

In the early 1990s, the then Narsimha Rao government embarked on a policy ofliberalization,

licensing a small number of private banks. These came to be known as New Generation tech-

savvy banks, and included Global Trust Bank (the first of such new generation banks to be set

up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI

Bank), ICICI Bankand HDFC Bank. This move, along with the rapid growth in the economy

of India, revitalized the banking sector in India, which has seen rapid growth with strong

contribution from all the three sectors of banks, namely, government banks, private banks and

foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms

for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights

which could exceed the present cap of 10%, at present it has gone up to 74% with some

restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used

to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave

ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this

led to the retail boom in India. People not just demanded more from their banks but also

received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range

and reach-even though reach in rural India still remains a challenge for the private sector and

foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered

to have clean, strong and transparent balance sheets relative to other banks in comparable

economies in its region. The Reserve Bank of India is an autonomous body, with minimal

pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage

volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in

its services sector-the demand for banking services, especially retail banking, mortgages and

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investment services are expected to be strong. One may also expect M&as, takeovers, and asset

sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in

Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been

allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005

that any stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in

their loan recovery efforts in connection with housing, vehicle and personal loans. There are

press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

Reserve Bank of India (RBI)

Reserve Bank of India (RBI) is the central bank of the country and is different from Central

Bank of India. The central bank of the country is the Reserve Bank of India (RBI). It was

established in April 1935 with a share capital of Rs. 5 crores on the basis of the

recommendations of the Hilton Young Commission. The share capital was divided into shares

of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning.

The Government held shares of nominal value of Rs 2, 20,000.

Reserve Bank of India was nationalised in the year 1949. The general superintendence and

direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor

and four Deputy Governors, one Government official from the Ministry of Finance, ten

nominated Directors by the Government to give representation to important elements in the

economic life of the country, and four nominated Directors by the Central Government to

represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New

Delhi. Local Boards consist of five members each Central Government appointed for a term of

four years to represent territorial and economic interests and the Interests Of co-operative AndIndigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of

1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for

the need of following:

To regulate the issue of banknotes

To maintain reserves with a view to securing monetary stability and

To operate the credit and currency system of the country to its advantage.

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CHAPTER2

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CONCEPTUAL FRAMEWORK

TRAINING DEFINED

It is a learning process that involves the acquisition of knowledge,

sharpening of skills, concepts, rules, or changing of attitude and behaviors to

enhance the performance of employees. Training is activity leading to skilled

behavior.

Its not what you want in life, but its knowing how to reach it.

Its not where you want to go, but its knowing how to get there.

Its not how high you want to rise, but its knowing how to take off.

It may not be quite the outcome you were aiming for, but it will be anoutcome.

Its not what you dream of doing, but its having the knowledge to do it.

It's not a set of goals, but its more like a vision

its not the goal you set, but its what you need to achieve it.

Training is about knowing where you stand (no matter how good or bad the

current situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through

professional development.

Importance of Training:

Optimum Utilization of Human Resources Training and Development helps in

optimizing the utilization of human resource that further helps the employee to

achieve the organizational goals as well as their individual goals

. Development of Human Resources Training and Development helps to provide

an opportunity and broad structure for the development of human resources

technical and behavioral skills in an organization. It also helps the employees in

attaining personal growth.

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Development of skills of employees Training and Development helps in

increasing the job knowledge and skills of employees at each level. It helps to

expand the horizons of human intellect and an overall personality of the

employees

. Productivity Training and Development helps in increasing the productivity of

the employees that helps the organization further to achieve its long-term goal.

Team spirit Training and Development helps in inculcating the sense of team

work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to

learn within the employees

. Organization Culture Training and Development helps to develop and improve

the organizational health culture and effectiveness. It helps in creating the

learning culture within the organization.

Organization Climate Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings

from leaders, subordinates, and peers.

Quality Training and Development helps in improving upon the quality of work

and work-life. Healthy work-environment Training and Development helps

increasing the healthy working environment. It helps to build good employee,

relationship so that individual goals aligns with organizational goal.

Health and Safety Training and Development helps in improving the health and

safety of the organization thus preventing obsolescence.

Morale Training and Development helps in improving the morale of the work

force.

Image Training and Development helps in creating a better corporate image.

Profitability Training and Development leads to improved profitability and morepositive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization

gets more effective decision making and problem solving. It helps in

understanding and carrying out organizational policies

Training and Development helps in developing leadership skills, motivation,

loyalty, better attitudes, and other aspects that successful workers and managers

usually display.

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Training objective is one of the most important parts of training program. While

some people think of training objective as a waste of valuable time. The

counterargument here is that resources are always limited and the training

objectives actually lead the design of training. It provides the clear guidelines and

develops the training program in less time because objectives focus specifically on

needs. It helps in adhering to a plan. Training objectives tell the trainee that what

is expected out of him at the end of the training program. Training objectives are

of great significance from a number of stakeholder perspectives,

1. Trainer

2. Trainee

3. Designer

4. Evaluator

Trainer

The training objective is also beneficial to trainer because it helps the trainer to

measure the progress of trainees and make the required adjustments. Also, trainer

comes in a position to establish a relationship between objectives and particular

segments of training.

Trainee

The training objective is beneficial to the trainee because it helps in reducing the

anxiety of the trainee up to some extent. Not knowing anything or going to a place

which is unknown creates anxiety that can negatively affect learning. Therefore, it

is important to keep the participants aware of the happenings, rather than keeping

it surprise. Secondly, it helps in increase in concentration, which is the crucial

factor to make the training successful. The objectives create an image of the

training program in trainees mind that actually helps in gaining attention. Thirdly,

if the goal is set to be challenging and motivating, then the likelihood of achieving

those goals is much higher than the situation in which no goal is set. Therefore,

training objectives helps in increasing the probability that the participants will be

successful in training.

Designer

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The training objective is beneficial to the training designer because if the

designer is aware what is to be achieved in the end then hell buy the training

package according to that only. The training designer would then look for thetraining methods, training equipments, and training content accordingly to achieve

those objectives. Furthermore, planning always helps in dealing effectively in an

unexpected situation consider an example; the objective of one training program

is to deal effectively with customers to increase the sales. Since the objective is

known, the designer will design attaining program that will include ways to

improve the interpersonal skills, such as verbal and non verbal language, dealing

in unexpected situation i.e. when there is a defect in a product or when a customer

is angry. Therefore, without any guidance, the training may not be designed

appropriately.

Evaluator

It becomes easy for the training evaluator to measure the progress of the

trainees because the objectives define the expected performanceof trainees.

Training objective is an important to tool to judge the performance of participants

Types of Training:

Basically there are two types of training1. On the Job Training (OJT)2. Off the Job

Training

ON THE JOB TRAINING

Managers have two powerful ways of improving the performance and productivity

of their subordinates, which are counseling and on the job training.Counseling is

the process of helping a subordinate define and resolve personal problems that

effect performance or in order to develop a good attitude to work.On the job

training is the process of explaining, demonstrating and the structuredsupervision

of specific skills or particular tasks. It is similar to the teaching process. On the job

training is often referred to as OJT.These are highly effective in three situations,

which are

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1.Resolving people problems

All managers are faced with problem people from time totime. Counseling and

training are always the firstconsiderations in these cases but they do not always

result insuccess and sometimes more radical action is required. This iscovered inthe Problem People and Positive Disciplinemodules.

2.Maintaining group standards

The management of people both as individuals and groups is adynamic process as

nothing remains static ? problems arealways arising. A good manager must be

aware of this and beconstantly ready to use counseling and training to

maintainstandards.3.

To achieve continuous improvement

The best way to avoid problems is to keep ahead of them by being proactive. You

must have a plan for each individual inyour group and for the group as a whole. In

particular newand inexperienced group members need special treatment sothat

they can meet required levels of performance.Counseling and training share many

of the same skills and inmany cases they are used together to achieve your

results.The following are typical signs of change to look for then youmust decide to

initiate the counseling or training (or both)initiatives.

TYPICAL SIGNS OF NEED FOR HELP

Avoids difficult work

No co-operation

Lack of interest

No initiativeComplainingMaking mistakes

Avoiding contact

No communication

Depressed

Poor quality

Argumentative

Unsafe working

Poor productivity

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Delegating to others

Laziness

AbsenteeismIrritability

Blaming others

The most important sign to look for is a change in behavior or performance. For

example, if an employee who has always been well behaved, with a

pleasantdisposition suddenly becomes aggressive you can bet on him having

some problem that needs counseling.

Counseling

On-the-job counseling is a process of talking about things that affect theperformance of the work. It involves sitting down in some quiet place andgetting

job problems out in the open without hurting each other.It's all about talking,

listening, and trying to understand the other person's pointof view. All supervisors

are counselors whether they realize it or not. Sometimesa long heart-to-heart talk

is needed to clear the air or a quick exchange will clear up a misunderstanding.

Perhaps the supervisor does most of the talking; the nexttime it may be the other

way around. However, counseling is more than a casualdiscussion resulting from

an accidental encounter.Counseling is a very effective management tool to

increase productivity bysolving problems and strengthening or repairing working

relationships. Other kinds of problems of a personal or psychological nature should

be avoided andleft to professionals in that field.

On the Job training

Training is almost a natural human instinct. We all train our children withouteven

thinking about it but when we have the job of training someone at work wefind

problems.

On the job training is often a one to one situation, usually involving thesupervisor

and one of the group. The supervisor uses the actual work as thetraining location,

and works with the trainee to improve skills or introduce newtasks. This process is

also referred to as coaching.

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Advantages of on the job training

1. It is cost effective

2. It strengthens relationship within the group

3. Feedback and support is easynearly all the problems associated with on the job

training are very simple toovercome. Like so many other parts of our work they

require us to take a moresystematic approach to the situation.

Most workers usually take pride in learning a new skill. The new skills gainedare to

our mutual benefit as it's good for the worker to improve his futureemployment

value and for us to have new capability in our groups.

In addition, by making learning possible, you earn their respect and build

enduringrelationships.The supervisor is frequently the only person in the

organization that teaches the basic knowledge and the many key skills that the

group needs to learn. On-the- job training should never stop.

OFF THE JOB TRAINING:

Advantages :

If the course has been designed by staff member it can be delivered to fit in

withthe employee's regime and workload, so it does not affect productivity.

Can work out extremely cost effective as no hotel fees, trainer fees or

extraequipment are incurred, all is provided in-house and in works time.Depending

on the course, employees are ample to meet other employees perhapsfrom otherbranches or departments they would not have normally met.

As employees are familiar with the trainer and the environment they are

beingtaught in, this would help them to feel more relaxed.

The person developing the course would be able to gauge the level of ability

andcontent for the course to be taught.The course would be more relevant and

adaptable to the needs of the company

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Disadvantages:

Extra Audio or Visual aids to aid learning (whiteboard, Overhead projector,

projector, video etc) might not be available and so this would mean coursesmight

be basic or substandard.

As a member of staff may be delivering the course rather than an

experiencedtrainer, the employees might not take the course seriously and this

might hamper learning.

Employee rivalry and banter may mean that employees bypass the course

andundervalue its content as they think they know better or have better ways of

doing it.

Depending on the teaching skills of the employee training the members of

staff,they might not be able to gauge the existing abilities, knowledge, skill or

needfor training, and so employees attending the course might already know what

is being taught already.

If the need for training has not accurately been gauged this would result in

thework space being wasted where it could have been utilized more productively.If

resources are limited, equipment available may be different than that used by the

employees and this would be counter productive.Employees may feel devalued ifthey are sent on an internal training course toimprove skills rather than learn new

ones and so courses have to be selected and promoted to the employees very

carefully and sensitively.

Needs of Training and to measure its effectiveness

The identification of training needs is the first step in a uniformmethod of

instructional design

A. Types of Needs Analyses

Many needs assessments are available for use in differentemployment contexts.

Sources that can help you determine which needsanalysis is appropriate for your

situation are described below.

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1.Context Analysis An analysis of the business needs or other reasons the training

is desired. The importantquestions being answered by this analysis are who

decidedthat training should be conducted, why a training programis seen as the

recommended solution to a business problem, what the history of the organization

has beenwith regard to employee training and other managementinterventions.

2.User Analysis Analysis dealing with potential participants and instructors

involved in the process. Theimportant questions being answered by this analysis

arewho will receive the training and their level of existingknowledge on the

subject, what is their learning style, andwho will conduct the training.

3.Work analysis Analysis of the tasks being performed.This is an analysis of the

job and the requirements for performing the work. Also known as a task analysis

or jobanalysis, this analysis seeks to specify the main duties andskill level

required. This helps ensure that the trainingwhich is developed will include

relevant links to thecontent of the job.

4.Content Analysis. Analysis of documents, laws, procedures used on the job. This

analysis answersquestions about what knowledge or information is used onthis

job. This information comes from manuals,documents, or regulations. It is

important that the contentof the training does not conflict or contradict

jobrequirements. An experienced worker can assist (as asubject matter expert) indetermining the appropriatecontent

5.Training Suitability Analysis. Analysis of whether training is the desired solution.

Training is one of severalsolutions to employment problems. However, it may

notalways be the best solution. It is important to determine if training will be

effective in its usage.

6. Cost-Benefit Analysis. Analysis of the return oninvestment (ROI) of training.

Effective training results in areturn of value to the organization that is greater thantheinitial investment to produce or administer the training

B. Techniques

Several basic Needs Assessment techniques include:

Direct Observation

Questionnaires

Consultation with persons in key positions, and/or with specificknowledge

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Review of Relevant Literature

Interviews

Focus Groups

Tests

Records & Report studies

Work Samples

C . Checklist for Training Needs Analysis

It is helpful to have an organized method for choosing the right testfor your needs.

A checklist can help you in this process. Your checklistshould summarize the kinds

of information discussed above. For example, isthe test valid for your intended

purpose? Is it reliable and fair? Is it cost-effective? Is the instrument likely to be

viewed as fair and valid by the testtakers? Also consider the ease or difficulty of

administration, scoring, andinterpretation given available resources. A sample

checklist that you mayfind useful appears on the following page. Completing a

checklist for eachtest you are considering will assist you in comparing them more

easily.

Training Evaluation

The process of examining a training program is called trainingevaluation. Training

evaluation checks whether training has had the desiredeffect. Training evaluation

ensures that whether candidates are able to implementtheir learning in their

respective workplaces, or to the regular work routines.

Purposes of Training Evaluation:

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The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining theobjectives

and linking it to learning outcomes.

Research: It helps in ascertaining the relationship between acquiredknowledge,

transfer of knowledge at the work place, and training.

Control: It helps in controlling the training program because if thetraining is not

effective, then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritativeemployee) uses

the evaluative data to manipulate it for their own benefits.

Intervention: It helps in determining that whether the actual outcomesare aligned

with the expected outcomes.

Process of Training Evaluation

Before Training

The learners skills and knowledge are assessed before thetraining program.

During the start of training, candidates generally perceive it asa waste of

resources because at most of the times candidates are unaware of theobjectives

and learning outcomes of the program. Once aware, they are asked togive their

opinions on the methods used and whether those methods confirm tothe

candidates preferences and learning style.

During Training:

It is the phase at which instruction is started. This phaseusually consist of short

tests at regular intervals

After Training:

It is the phase when learners skills and knowledge are assessedagain to measure

the effectiveness of the training. This phase is designed todetermine whether

training has had the desired effect at individual departmentand organizational

levels.training has had the desired effect at individual department and

organizationallevels. There are various evaluation techniques for this phase.

Techniques of Evaluation

The various methods of training evaluation are:

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Observation.

Questionnaire.

Interview.

Self diaries.

Self recording of specific incidents.

Methods of Training in Kotak Mahindra Bank:

There are various methods of training, which can be divided in to cognitive and

behavioral methods. Trainers need to understand the pros and cons of each

method, also its impact on trainees keeping their background and skills in mind

before giving training. Cognitive methods are more of giving theoretical training to

the trainees. The various methods under Cognitive approach provide the rules for

how to do something, written or verbal information, demonstrate relationships

among concepts, etc. These methods are associated with changes in knowledge

and attitude by stimulating learning.

The various methods that come under Cognitive approach are:

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LECTURES

DISCUSSIONS

COMPUTER BASED TRAINING (CBT)

NTELLEGENT TUTORIAL SYSTEM(ITS)

PROGRAMMED INSTRUCTION (PI)

1) Computer-Based Training (CBT)

With the world-wide expansion of companies and changing technologies, the

demands for knowledge and skilled employees have increased more than ever,

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which in turn, is putting pressure on HR department to provide training at lower

costs. Many organizations are now implementing CBT as an alternative to

classroom based training to accomplish those goals.

Some of the benefits of Computer-Based Training are:

The growth of electronic technology has created alternative training delivery

systems. CBT does not require face-to-face interaction with a human trainer. This

method is so varied in its applications that it is difficult to describe in concise

terms.

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2) Lecture Method

It is one of the oldest methods of training. This method is used to createunderstanding of a topic or to influence behavior, attitudes through lecture. A

lecture can be in printed or oral form.

Lecture is telling someone about something. Lecture is given to enhance the

knowledge of listener or to give him the theoretical aspect of a topic. Training is

basically incomplete without lecture. When the trainer begins the training session

by telling the aim, goal, agenda, processes, or methods that will be used in

training that means the trainer is using the lecture method. It is difficult to imaginetraining without lecture format. There are some variations in Lecture method. The

variation here means that some forms of lectures are interactive while some are

not. Straight Lecture: Straight lecture method consists of presenting information,

which the trainee attempts to absorb. In this method, the trainer speaks to a group

about a topic. However, it does not involve any kind of interaction between the

trainer and the trainees. A lecture may also take the form of printed text, such as

books, notes, etc. The difference between the straight lecture and the printed

material is the trainers intonation, control of speed, body language, and visual

image of the trainer. The trainer in case of straight lecture can decide to vary from

the training script, based on the signals from the trainees, whereas same material

in print is restricted to what is printed.

A good lecture consists of introduction of the topic, purpose of the lecture, and

priorities and preferences of the order in which the topic will be covered. Some of

the main features of lecture method are:

Inability to identify and correct misunderstandings

Less expensive

Can be reached large number of people at once

Knowledge building exercise

3) Role Play:

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Role play is a simulation in which each participant is given a role to play. Trainees

are given with some information related to description of the role, concerns,

objectives, responsibilities, emotions, etc. Then, a general description of the

situation, and the problem that each one of them faces, is given. For instance,

situation could be strike in factory, managing conflict, two parties in conflict,

scheduling vacation days, etc. Once the participants read their role descriptions,

they act out their roles by interacting with one another. Role Plays helps in the

following way :-

Developing interpersonal skills and communication skills

Conflict resolution

Group decision making

Developing insight into ones own behavior and its impact on others

There are various types of role plays, such as:

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Multiple Role Play In this type of role play, all trainees are in groups, with each

group acting out the role play simultaneously. After the role play, each group

analyzes the interactions and identifies the learning points.

Single Role Play One group of participants plays the role for the rest, providing

demonstrations of situation. Other participants observe the role play, analyze their

interactions with one another and learn from the play.

Role Rotation It starts as a single role play. After the interaction of participants,

the trainer will stop the role play and discuss what happened so far. Then the

participants are asked to exchange characters. This method allows a variety of

ways to approach the roles.

Spontaneous Role Play In this kind of role play, one of the trainees plays herself

while the other trainees play people with whom the first participant interacted

before.

4) Coaching:

Coaching is one of the training methods, which is considered as a correctivemethod for inadequate performance.

It is one-to-one interaction

It can be done at the convenience of the trainee as well as trainers.

It can be done on phone, meetings, through e-mails, chat

It provides an opportunity to receive feedback from an expert

It helps in identifying weaknesses and focus on the area that needs improvement

This method best suits for the people at the top because if we see on emotional

front, when a person reaches the top, he gets lonely and it becomes difficult to

find someone to talk to. It helps in finding out the executives specific

developmental needs. The needs can be identified through 60 degree performance

reviews.

Procedure of the Coaching

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The procedure of the coaching is mutually determined by the executive and coach.

The procedure is followed by successive counseling and meetings at the

executives convenience by the coach.

1. Understand the participants job, the knowledge, skills, and attitudes, and

resources required to meet the desired expectation

2. Meet the participant and mutually agree on the objective that has to be

achieved

3. Mutually arrive at a plan and schedule

4. At the job, show the participant how to achieve the objectives, observe the

performance and then provide feedback

5. Repeat step 4 until performance improves

For the people at middle-level management, coaching is more likely done by the

supervisor; however experts from outside the organization are at times used for

up-and-coming managers. Again, the personalized approach assists the manger

focus on definite needs and improvement.

5) Mentoring:

Mentoring is an ongoing relationship that is developed between a senior and junior

employee. Mentoring provides guidance and clear understanding of how the

organization goes to achieve its vision and mission to the junior employee.

The meetings are not as structured and regular than in coaching. Executive

mentoring is generally done by someone inside the company. The executive can

learn a lot from mentoring. By dealing with diverse mentees, the executive is

given the chance to grow professionally by developing management skills and

learning how to work with people with diverse background, culture, and language

and personality types.

Executives also have mentors. In cases where the executive is new to the

organization, a senior executive could be assigned as a mentor to assist the new

executive settled into his role. Mentoring is one of the important methods for

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preparing them to be future executives. This method allows the mentor to

determine what is required to improve mentees performance. Once the mentor

identifies the problem, weakness, and the area that needs to be worked upon, the

mentor can advise relevant training. The mentor can also provide opportunities to

work on special processes and projects that require use of proficiency.

Some key points on Mentoring

Mentoring focus on attitude development

Conducted for management-level employees

Mentoring is done by someone inside the company

It is one-to-one interaction

It helps in identifying weaknesses and focus on the area that needs

improvement

Behavioral methods are more of giving practical training to the trainees.The

various methods under Behavioral approach allow the trainee to behavior ina real

fashion. These methods are best used for skill development.

The various methods that come under Behavioral approach are:

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GAMES AND SIMULATIONS

BEHAVIOR-MODELING

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BUSINESS GAMES

CASE STUDIES

EQUIPMENT STIMULATORS

IN-BASKET TECHNIQUE

ROLE PLAYS

1) Games and Simulations:

Games and Simulations are structured and sometimes unstructured, that are

usually played for enjoyment sometimes are used for training purposes as an

educational tool. Training games and simulations are different from work as they

are designed to reproduce or simulate events, circumstances, processes that take

place in trainees job.

A Training Game is defined as spirited activity or exercise in which trainees

compete with each other according to the defined set of rules.

Simulation is creating computer versions of real-life games. Simulation is about

imitating or making judgment or opining how events might occur in a real

situation.

It can entail intricate numerical modeling, role playing without the support of

technology, or combinations. Training games and simulations are now seen as an

effective tool for training because its key components are:

Challenge

Rules

Interactivity

These three components are quite essential when it comes to learning.

Some of the examples of this technique are:

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Basically, they are based on the set of rules, procedures, plans, relationships, principles derived from

the research. In the business games, trainees are given some Trainees can therefore

experience these events, processes, games in a controlled setting where they can

develop knowledge, skills, and attitudes or can find out concepts that will improve

their performance.

2) Behavior Modeling

Behavior Modeling uses the innate inclination for people to observe others to discover how to do

something new. It is more often used in combination with some other techniques.

Procedure of Behavior Modeling Technique

In this method, some kind of process or behavior is videotaped and then is watched by the

trainees. Games and simulation section is also included because once the trainees see the

videotape, they practice the behavior through role plays or other kind of simulation techniques. The

trainee first observes the behavior modeled in the video and then reproduces the behavior on the

job.

The skills that are required to build up are defined

A brief overview of the theory is then provided to the trainers

Then, trainees are given instructions that what specific learning points or critical behavior they

have to watch

Then the expert is used to model the suitable behaviors

Then, the

trainees are encouraged to practice the suitable behavior in a role play or through anyother method of simulation

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It demonstrates principles and concepts

It explores and solves complex problem

Many games and simulations examine the total organization but only some focus on the functional

responsibilities of specific positions in an organization.

Business games simulate whole organization and provide much better perspective than any other

training methods. They allow trainees to see how their decisions and actions impact on the related

areas.

4) Case Study

Case Studies try to simulate decision making situation that trainees may find at their

work place. It reflects the situations and complex problems faced by managers, staff, HR, CEO, etc.The objective of the case study method is to get trainees to apply known concepts and ideologiesand ascertain new ones. The case study method emphasize on approach to see a particularproblem rather than a solution. Their solutions are not as important as the understanding ofadvantages and disadvantages.

Procedure of the Case Study Method

The trainee is given with some written material, and the some complex situations of a real

or imaginary organization. A case study may range from 50 to 200 pages depending

upon the problem of the organization.

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A series of questions usually appears at the end of the case study.

The longer case studies provide enough of the information to be examined while the

shorter ones require the trainee to explore and conduct research to gather appropriate amount of

information.

The trainee then makes certain judgment and opines about the case by identifying and

giving possible solutions to the problem.

In between trainees are given time to digest the information. If there is enough time left,

they are also allowed to collect relevant information that supports their solution.

Once the individuals reach the solution of a problem, they meet in small groups to discuss

the options, solutions generated.

Then, the trainee meets with the trainer, who further discusses the case.

Case Study method focuses on:

Building decision making skills

Assessing and developing Knowledge, Skills and Attitudes (KSAs)

Developing communication and interpersonal skills

Case Study On Training Methods

Few years ago ABC company developed a training strategy for training its global sales force.

An important feature of the strategy was to create a master training plan for each year. The

organizations strategic plans, objectives, and functional tactics would drive this plan. Once an

initial procedure was designed it was then evaluated and critiqued by the top management,

different units, and training council. The input from these stakeholders would be summarized

and transferred into a master training plan.

The major question that was asked by the designers oftraining program was, "what results do

we want from salespeople after the training program is over?" Answer to this question becomes

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the objective of the training program.

Then training content was designed, videos were made. The videos took 3 to 6 months to

produce. Video contains live production plants, clients offices, partner offices, suppliers,

manufacturers locations, and other locations.

Videos were used to train sales people in various areas, such as:

Market information i.e. about customer profile, market updates, and computerintegrated manufacturing applications, etc

Sales Process i.e. how to deal in the situation of conflicts with customer, coaching on

undesirable behavior, supplement skills developed during live courses

Product information, such as, product usage, applications, system description, product

description, comparison with competitors products, etc

Policies and procedures, i.e. about sales contests, incentive plans on achieving targets, annual

bonuses, winners receiving the best salesperson award to motivate the sales force

Around thousands of sales persons were getting a specific video training. The sales people

were getting training material along with the video. Sales representatives then watch video,

follow the directions, and refer to the material if faces any problem. When salespeople feel they

have mastered the material, they would take an exam and call a toll-free number to transmit

responses to exam.

Salespeople who successfully passed an exam were factored into performance and merit

reviews as well as promotional opportunities. Those who couldnt pass the exam were asked to

go through the material and video again before retaking the exam. If the salesperson failed an

exam again, the reporting manager was notified.

5) Equipment simulators

Equipment simulators are the mechanical devices that necessitate trainees to use some actions, plans,

measures, trials, movements, or decision processes they would use with equipment back on the their

respective work place.

It is imperative that the simulators be designed to repeat, as closely as possible, the physical aspects of

equipment and operational surroundings trainees will find at their work place. This is also called as

physical fidelity of the simulation.

Besides that, the mental conditions under which the equipment is operated such as, increasing

demands, pressure of time, and relationship with colleagues, subordinates, etc must also be closely

matched to what the trainees experience on the work place.

The literature on socio-technical approaches to organizational development provides guidelines for

the design or redesign of tools. Human Resource professionals involved in propose of simulators

and their pre-testing should engage those who will be using the equipment and their supervisors. Their

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input can help in reducing the potential resistance, errors in the equipment and more importantly, it

also increases the degree of reliability between the simulation and the work setting.

Equipment simulators can be used in giving training to:

Air Traffic Controllers

Taxi Drivers

Telephone Operators

Ship Navigators

Maintenance Workers

Product Development Engineers

Airline Pilots

Military Officers

Both the methods can be used effectively to change attitudes, but through different means

.Another Method is MANAGEMENT DEVELOPMENT METHOD

MANAGEMENT DEVELOPMENT

The more future oriented method and more concerned with education of the employees. To become a

better performer by education implies that management development activities attempt to instill sound

reasoning processes .Management development method is further divided into two part

ON THE JOB TRAINING

The development of a managers abilities can take place on the job. The four techniques for on-the job

development are:

COACHING

MENTORING

JOB ROTATION

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JOB INSTRUCTION TECHNIQUE (JIT)

OFF THE JOB TRAINING

There are many management development techniques that an employeecan take in off the job. The

few popular methods are:

SENSITIVITY TRAINING

RANSACTIONAL ANALYSIS

STRAIGHT LECTURES/ LECTURES

SIMULATION EXERCISES

Suggestions to Improve Training:

Before the Training Programmed:

Explain to the employee why they were selected for the training programming discuss the

anticipated benefits for your department or division. This preview' helps the employee focus on what

is expected of them after the training programmed finishes.

Ask the employee to describe the benefits they expect to receive from the programmed. Having the

employee focus on their personal expectations prior to the start of training can increase the learning

potential of any programmed.

Explain to the staff what is expected from them in terms of punctuality,attendance and participation in the training programme.

If more than one employee is being sent to a training programme, introduce them

to each other so they feel comfortable with their fellow participants.

Ensure the employee understand how the training programme will benefit both

their current job performance while improving their advancement potential.

During the Training Programme:

For extended training programmes, have the participants brief their managersas the course progresses. This can be done via telephone or fax when face-to-face

meetings are impossible. These briefings 'force' the participant to evaluate the

material on a daily basis, thereby enhancing their learning outcome.

Managers should discuss any problems or uncertainties that arise in order to

help participants identify examples of how the material can be applied on the job.

If the participants are required to complete an interim assignment the manager

should get personnel that are not attending the course involved. This will

maximize the amount of individuals who benefit from the course.

After the Training Programme:

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Meet with course participants to review

(1) what they learned,

(2) how willthey use the new knowledge in their day-to-day work,

(3) suggestions they havefor improving the course, and

(4) who else should attend the course.

Ask the employees for suggested company improvements based on the material

they learned during the training programme. Managers must be willing to

implement these suggestions on a trial basis and ensure the employee is involved

with the implementation and evaluation process. Remembering these simple tricks

will improve your organization's training ROI while making sure the performance of

your workforce will continue to improve. Finally, I want to emphasize again, these

tricks are not designed only for the HR staff -- improving the training process is

everyone's business. TRAINING DESIGN

TRAINING EVALUATION

Evaluation involves the assessment of the effectiveness of the training programs.

This assessment is done by collecting data on whether the participants were

satisfied with the deliverables of the training program, whether they learned

something from the training and are able to apply those skills at their workplace.

There are different tools for assessment of a training program depending upon the

kind of training conducted.

Kirkpatrick's Four Levels of Evaluation

Assessing training effectiveness is critical. Donald Kirkpatrick developed a four-

level model of evaluation (Figure 1).

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Figure 1

1 - Reactions: Measures how participants have reacted to the training.

2 - Learning: Measures what participants have learned from the training.

3 - Behaviour: Measures whether what was learned is being applied on the job.

4 - Results: Measures whether the application of training is achieving results.

Each successive level of evaluation builds upon the evaluations of the previous

level. Each successive level of evaluation adds precision to the measure of

effectiveness but requires more time consuming analysis and increased costs.

Level 1 Evaluation - Reactions

This level measures how participants in a training program react to the training.

Every program should at least be evaluated at this level to answer questions

regarding the learners' perceptions and improve training. This level gains

knowledge about whether the participants liked the training and if it was relevant

to their work. Negative reactions reduce the possibility of learning.

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Evaluation tools:

Program evaluation sheets

Face-to-face interviews

Participant comments throughout the training

Ability of the course to maintain interest

Amount and appropriateness of interactive exercises

Ease of navigation in Web-based and computer-based training

Participants' perceived value and transferability to the workplace

This type of evaluation is inexpensive and easy to administer using interaction

with the participants, paper forms and online forms.

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Level 2 Evaluation - Learning

Level 2 evaluations are conducted before training (pre-test) and after training

(post-test) to assess the amount of learning that has occurred due to a training

program (Figure 2).

Figure 2 - Level 2 Evaluation Showing Results of Pre-test and Post Test

Level 2 evaluations assess the extent learners have advanced in knowledge, skills

or attitude. Level 2 evaluation methods range from self-assessment to team

assessment to informal to formal assessment.

Evaluation tools:

Individual pre- and post-training tests for comparisons

Assessment of action based learning such as work-based projects and

role-plays

Observations and feedback by peers, managers and instructors

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Level 3 Evaluation - Transfer

Evaluations at this level attempt to answer the question of whether the training

has been transferred back to the job. This evaluation is typically performed three

to six months after training. The evaluator would ask questions such as "Are the

newly acquired knowledge, skills or attitude being used in the environment of the

learner"? This evaluation represents the truest assessment of a program's

effectiveness but is costly. It is often impossible to predict when changes in

behaviour will occur. Careful planning decisions are needed for this level of

evaluation in terms of when to evaluate, how to evaluate and how often to

evaluate.

Evaluation questions:

Did the trainees put their learning into effect when back on the job?

Were the relevant skills and knowledge used?

Was there noticeable and measurable change in the activity andperformance of the trainees when back in their roles?

Was the change in behaviour and new level of knowledge sustained?

Would the trainee be able to transfer their learning to another person?

Is the trainee aware of their change in behaviour, knowledge, skill level?

Did the representative open each telephone customer dialog using his orher name and department?

Was the representative able to describe to you and categorize the

customer's objections as either misinformation or valid?

Did the representative use the appropriate model answer in response to

each objection?

Did the representative close each sales call with a request for purchase?

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If the prospect did not make a purchase, did the representative end the call

with specific future action steps?

Did the representative complete call history records that include summaries

of who, what, where, when, and why?

Evaluation tools:

Individual pre- and post-training tests or surveys

Face-to-face interviews

Observations and feedback from others

Focus groups to gather information and share knowledge

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Level 4 Evaluations - Results

This evaluation measures the success of the training program in term that

executives and managers can understand such as increased production, increasedsales, decreased costs, improved quality, reduced frequency of accidents, higher

profits or return on investment, positive changes in management style or in

general behaviour, increase in engagement levels of direct ports and favourable

feedback from customers, peers and subordinates. For example, after training in

April 2005, the sales continued to increase throughout 2005 (Figure 3).

Figure 3 - Level 4 Evaluation Showing Increase in Sales.

However, Level 4 evaluations are difficult to measure and correlate with training.

For example, the increase in sales could be attributed to several factors such as

training and product promotions.

Evaluations:

Quality training. Measure a reduction in number of defects.

Safety training. Measure reduction in number or severity of accidents.

Sales training. Measure change in customer retention, sales volume, andprofitability on each sale after the training program has been implemented.

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Management training. Measure increase in engagement levels of direct-

reports.

Technical training. Measure reduction in time to complete tasks, forms

and reports; reduced calls to the help desk; or improved use of software or

systems.

Other: Measure changes in staff turnover, number of complaints, growth, attrition,

wastage, failures, non-compliance, and quality ratings, achievement of standards

and accreditations and customer retention.

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PROCESS OF TRAINING

Training is one of the most profitable investments an organization canmake. No matter what business or industry you are in the steps for aneffective training process are the same and may be adapted anywhere.

If you have ever thought about developing a training program withinyour organization consider the following four basic training steps. Youwill find that all four of these steps are mutually necessary for any

training program to be effective and efficient.

STEP 1: ESTABLISHING A NEEDS ANALYSIS.This step identifies activities to justify an investment for training. The techniquesnecessary for the data collection are surveys, observations, interviews, andcustomer comment cards. Several examples of an analysis outlining specifictraining needs are customer dissatisfaction, low morale, low productivity, and highturnover

The objective in establishing a needs analysis is to find out the answers to the following

questions:

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- Why is training needed?

- What type of training is needed?

- When is the training needed?

- Where is the training needed?

- Who needs the training? And

- "Who" will conduct the training?

- How will the training be performed?

STEP 2: DEVELOPING TRAINING PROGRAMS AND MANUALS.

This step establishes the development of current job descriptions and standards and

procedures. Job descriptions should be clear and concise and may serve as a major training

tool for the identification of guidelines. Once the job description is completed, a complete list

of standards and procedures should be established from each responsibility outlined in the job

description. This will standardize the necessary guidelines for any future training

STEP 3: DELIVER THE TRAINING PROGRAM.

This step is responsible for the instruction and delivery of the training program. Once you

have designated your trainers, the training technique must be decided. One-on-one training,on-the-job training, group training, seminars, and workshops are the most popular methods.

STEP 4: EVALUATE THE TRAINING PROGRAM.

This step will determine how effective and profitable your training program has been.

Methods for evaluation are pre-and post- surveys of customer comments cards, the

establishment of a cost/benefit analysis outlining your expenses and returns, and an increase

in customer satisfaction and profits

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.

CHAPTER-3

RESEARCH OBJECTIVE AND METHODOLOGY

OBJECTIVES OF STUDY:

To identify impact of work environment practices on training & development.

To examine relationship between superior & peer support and training effectiveness.

To investigate relationship effect between supervisory & peer support and training

effectiveness.

To examine effectiveness of training towards individual development of workforce.

.SCOPE OF STUDY :

To enable the author to understand training and development

effectiveness.

It is reconfirming past literature about relationship between supervisor &

peer support and training effectiveness..

It also carries practical implications as in how work environment

practices influence training effectiveness.

RESEARCH METHODOLOGY

Research methodology is the method or the entire procedure involved in carryingout a

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research for a specific purpose. Research is a way to systematically solvethe research

problem.In it we study the various steps that are generally adopted by a research to

knownot only the research methods or techniques and they need to know the criteria by

which they can decide technique and procedure will be applicable to certain problems and

other will not. Research is thus an original contribution to theexisting stock of knowledge

making for its advancement. Te purpose of researchis to discover answer to questions

application of scientific procedures.

Research always starts with a question or a problem.

Its purpose is to find answers to questions through theapplication of the scientific method.

It is a systematic and intensive study towards study a morecomplete knowledge of the studied.

As marketing does not address itself to basic or fundamental questions, it doesnot qualify. On

the contrary, it tackles problems, which seem to have immediatecommercial potential. In the

view of the major consideration, marketing researchshould be regarded as applied research. We

may also say that marketing researchis of both types problem solving oriented.

TYPES OF RESEARCH

The approach followed in his type of research, the researcher has to contact the

person directly to know about the available information and analyze these tomake

a critical evaluation. The facts and information required to analyze the datawas

available in the interviewers statements.It is called descriptive as it in the present.

The researcher has no control over thevariable. He can report what has happened

or what is happening.

Primary data are data freshly gathered for specific purpose or for a

specificresearch project.

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When the needed do not exist or are dated, inaccurate, incomplete, unreliable,the

researcher will have to collect primary data. The normal procedure is tointerview

some people individually or in groups, to get a sense of how peoplefeel about the

topic in question and develop a formal research instrument intofield. It is also

called as the first hand data.

it refers to data that is collected from some other sources, probably for similar

purpose already exists somewhere.The research assignment under was aimed at

gathering some vital informationAlliance for Debit Card Customer used by kotak

Mahindra bank in attracting thecustomer and the reasons for enormous

success.Among all the available ways, survey was the most feasible option to carry

in thecores of carrying out the research as it was more economical and keeping

thelimited time in hand it thus proved to be the best option.Survey was the best

option as:

It provides larger and fast coverage

Low cost is involved

Direct interface with people

The analysis can be done on the basis of structuredquestionnaire

Data is easier

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CHAPTER-4

INTRODUCTION TO KOTAK MAHINDRA BANK

(i) History

Established in 1985, the Kotak Mahindra group has been one of India's most reputed financial

conglomerates. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company

was given the license to carry on banking business by the Reserve Bank of India (RBI). This

approval created banking history since Kotak Mahindra Finance Ltd. is the first non-banking

finance company in India to convert itself in to a bank as Kotak Mahindra Bank Ltd. Today, we

are one of the fastest growing bank and among the most admired financial institutions in India.

(ii)Senior Management

Mr. Uday S. Kotak, Executive Vice Chairman & Managing Director

Mr. Uday Kotak, B.Com, MMS (Masters in Management

Studies), aged 50 years, is the Executive Vice-Chairman and

Managing Director of the Bank, and its principal founder and

promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of

Management Studies. In 1985, when he was still in his early

twenties, Mr. Kotak thought of setting up a bank when private Indian banks were not even seen

in the game. First Kotak Capital Management Finance Ltd (which later became Kotak

Mahindra Finance Ltd), and then with Kotak Mahindra Finance Ltd, Kotak became the first

non-banking finance company in India's corporate history to be converted into a bank. Over the

years, Kotak Mahindra Group grew into several areas like stock broking and investment

banking to car finance, life insurance and mutual funds.

Among the many awards to Mr. Kotak's credit are the CNBC TV18 Innovator of the Year

Award in 2006 and the Ernst & Young Entrepreneur of the Year Award in 2003. He was

featured as one of the Global Leaders for Tomorrow at the World Economic Forum's annual

meet at Davos in 1996. He was also featured among the Top Financial Leaders for the 21st

Century by Euro money magazine. Most recently, he was named as CNBC TV18 India

Business Leader of the Year 2008.

Mr. C Jayaram, Executive Director

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Mr. C. Jayaram, aged 53 years, is an Executive Director of the Bank and is currently in charge of the

Wealth Management Business of the Kotak Group. An alumnus of IIM Kolkata, he has been with the

Kotak Group since 1990 and came on the Kotak board in October 1999. He also oversees the

international subsidiaries and the alternate asset management business of the group. He is the Director

of the Financial Planning Standards Board, India. He varied experience of over 25 years in many

areas of finance and business, has built numerous businesses for the Group and was CEO of Kotak

Securities Ltd. An avid player and follower of tennis, he also has a keen interest in psychology.

Mr. Dipak Gupta, Executive Director

An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta has been with the Kotak

Group since 1992 and joined the board in October 1999. Mr. Dipak

Gupta, aged 48 years, is an Executive Director of Kotak Bank. He

heads commercial banking, retail asset businesses and looks after

group HR function. Early on, he headed the finance function and was

instrumental in the joint venture between Kotak Mahindra and Ford

Credit International. He was the first CEO of the resulting entity,

Kotak Mahindra Primus Ltd.

(iii)Corporate identity

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(iv) Business

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal

finance solutions of every kind from savings accounts to credit cards, distribution of mutual

funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates

lending verticals, manages IPOs and provides working capital loans. Kotak has one of the

largest and most respected Wealth Management teams in India, providing the widest range of

solutions to high net worth individuals, entrepreneurs, and business.

MILESTONES OF KOTAK MAHINDRA GROUP

Milestones that have shaped the Kotak Mahindra Group, since 1986

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Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985, it has been a

steady and confident journey leading to growth and success. The milestones of Kotak

Mahindra's growth story are listed below by year.

Year Milestone

1986 Mahindra Finance Limited starts the activity of Bill Discounting

1987 Mahindra Finance Limited enters the Lease and Hire Purchase market

1990 The Auto Finance division is started

1991The Investment Banking Division is started. Takes over FICOM, one of

India's largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995

Brokerage and Distribution businesses incorporated into a separate company

- Securities. Investment Banking division incorporated into a separate

company - Mahindra Capital Company

1996

The Auto Finance Business is hived off into a separate company - Mahindra

Prime Limited (formerly known as Mahindra Primus Limited). Mahindra

takes a significant stake in Ford Credit Mahindra Limited, for financing Fordvehicles. The launch of Matrix Information Services Limited marks the

Group's entry into information distribution.

1998Enters the mutual fund market with the launch of Mahindra Asset

Management Company.

2000 Mahindra ties up with Old Mutual plc. For the Life Insurance business.

2000

Securities launch its on-line broking site (now www.securities.com).

Commencement of private equity activity through setting up of Mahindra

Venture Capital Fund.

2001 Matrix sold to Friday Corporation

2001 Launches Insurance Services

2003Mahindra Finance Ltd. converts to a commercial bank - the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

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2005Group realigns joint venture in Ford Credit; Buys Mahindra Prime (formerly

known as Mahindra Primus Limited) and sells Ford credit Mahindra.

2005 Launches a real estate fund

2006 Bought the 25% stake held by Goldman Sachs in Mahindra Capital

Company and Securities

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Documents

Kaushik Edited