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ACROPOLIS FACULTY OF MANAGEMENT AND RESEARCH

SYNOPSIS

ON

A study of changes in the employee productivity in Federal Bank &

Karnataka Bank.

Submitted To

ACROPOLIS FACULTY OF MANAGEMENT AND RESEARCH

Towards the partial fulfillment of the Degree of Master of Business

Administration

From

DEVI AHILYA VISHWAVIDHYALAYA, INDORE

Session 2010-2012

Submitted To: Submitted By:

Prof.Priyanka JITENDRA JAMADARI

MBA III SEMESTER

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DECLARATION & CERTIFICATE BY THE STUDENT

This is to certify that the project entitled IMPACT OF ADVERTISING ON CONSUMERPURCHASEBEHAVIOR OF FMCG PRODUCT (SOAPS, DETERGENTS, TOOTHPASTE) ATINDORE is a bona fide

work done byJitendra Kumar Barde under the supervision of Dr. Anant Gwal in

partial fulfillment for the degree of Master of Business Administration by Devi Ahilya

Vishwavidyalaya.

Indore Jitendra Kumar Barde

2012 - 2013

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ACKNOWLEDGEMENT

First of all I would like to thank Acropolis faculty of Management &Research ,

Indore and Devi Ahilya Vishwavidyalaya Indore for giving me the great

learning opportunity as a Major Research Project for the completion of MBA

degree. I am highly obliged to my supervisor Dr. Anant Gwal to guide me in

every aspect of the project; the learning is very important for me which I gain

under his valuable guidance in the areaInvestmentPattern of Small Entrepreneur.

I express my humble thanks to Dr. Sumer Yadav (Director) for providing

opportunity to learn more in research area.

I also place my gratitude to Dr. Anant Gwal immense support in my project work

for their.

I am very thankful to librarian, faculty members and management team of AFMR

for their cooperation.

From the beneath of my heart, I would also appreciate the conviction shown by

my family and friends who placed immense faith on me; by their motivation I was

able to give shape to my project on time.

Jitendra Kumar Barde

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Index

Introduction Conceptual framework Review of the literature Objective of Study Rational of study Methodology References

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Introduction

The banking system is a central to nations economy. Banks are special as they notonly accept and deploy large amounts of uncollateralized public funds in a

fiduciary capacity, but also leverage such funds to credit creation. The sector now

compares favourably with banking sectors in the region on metrics like growth,

profitability and non-performing asset. This is reflected in their market valuation.

Indias banking industry must strengthen itself significantly if it has to support the

modern and vibrant economy which India aspires to be.

Private banking in India was practiced since the beginning of banking system in

India. The first private bank in India to be set up in Private Sector Banks in India

was Indusind Bank. It is one of the fastest growing Private Sector Bank in India.

IDBI ranks the tenth largest development bank in the world as Private Banks in

India and has promoted world class Institutions in India.

The efficiency or the growth of a bank can be measured through various measures

like deposits, advances, working funds, incomes, expenditures, profits, assets,

number of account and branches etc. The role of employees is also of great

significance as each and every activity of a bank is directly related to the attitude,

motivation and work culture of the employees.

Employee productivity depends on the amount of time an individual is physically

present at a job and also the degree to which he or she is mentally present or

efficiently functioning while present at a job. Companies must address both of

these issues in order to maintain high worker productivity, and this may occur

through a variety of strategies that focus on employee satisfaction, Health and

morale (Ron and Ronald, 2002).

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Employee productivity plays major role to improve the profitability of banks.

Waste reduction and efficient utilization of resources accounts for higher

profitability of the industrial units. Efficiency leads to efficient utilization of

human, material and technological resources. For this bank need to increase their

employee productivity, and to do more work to become winners in the 21stcentury. Those who can change the competitive rules develop new innovative and

customized products and services will be winners. For this bank has to increase the

productivity of employees. There are some factors that could have an influence on

the productivity of employees. Some factors are the firm specific factors that have

a strong influence on productivity. Firm specific factors are also known as internal

factors and the external factor are widely known as the macroeconomic factors.

Macroeconomic factors are the economy-wide phenomena, such as Gross

National Product (GDP) and how it is affected by changes in unemployment,national income, rate of growth, and price level. Macroeconomists study

aggregated indicators such as GDP, inflation, Index of Industrial Production,

unemployment rates, and price indices to understand how the whole economy

functions. Macroeconomists develop models that explain the relationship between

such factors as national income, output, consumption, unemployment, inflation,

savings, investment, international trade and international finance. Since human

resources are also a part of economy hence it is very imperative to understand that

how its productivity changes during the different phases of economic cycle.

Thus this paper broadly focuses on understanding whether employee productivity

varies in Federal Bank and Karnataka Bank. The change of employee productivity

could have an impact on profitability of banks in India.

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CONCEPTUAL FRAMEWORK

The South Kanara district of Karnataka State well known as the cradle

of banking has witnessed the birth of 22 banks since 1906. There was a

patriotic zeal and fervor in the district after swadeshi movement. Severalmerchants, landlords, doctors and lawyer with an indomitable zeal began to

conceptualize modern banking concepts. 5 banks have been originated out

of i t . One is priv ate bank s - C anar a Bank , S yndi cate Bank, Vijaya

Bank, Corporation Bank and Karnataka Bank. In which first four are public sector

banks and Karnataka bank is private sector bank

Karnataka bank is deeply committed to its social obligation of extending credit and

other banking services to its rural customers. It has also contributed a lot in

irrigating the dry lands in the state through lending for the purchase of sprinklerssets, pump sets, oil engines etc. The bank has also assis ted the villagers for

establishing cottage and small scale industries. The farmers are also

assist ed for t he pu rchase of t ractors and other agricultural

implements. The bank apart from rendering financial assistance has being

issuing health care pamphlets periodically to its customer as well as to the public

through its branches in Karnataka through i ts objectives of education and

social maladies like drinking, smoking etc. to help them lead happy and healthy

life.

KARNATAKA BANK

Advantage - Employees

The employees automatically become KARNATAKA Bank Salary Account holders with special

benefits and privileges and receive instant salary credit. The benefits include International debit

card, corporate card with Individual Liability (CCIL), access to Phone Banking and Internet

Banking, Demat accounts, and a host of other services to complement their savings account.

Here are some of the features of KARNATAKA Bank Salary Account: -

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BANKING

Welcome-Kit

KARNATAKA Bank Salary Account customers fill up a form and getting their chequebooks and debit cards immediately.

Money Multiplier

The Money Multiplier feature gives the liquidity of a Savings Account coupled with high

earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to your

Savings Account.

Debit Card

We offer an International N-Cash Debit card to our Salary Account customers to

provide them access to our extensive ATM network. The card also allows them to shop at

over 11,000 merchant establishments.

Free Internet Banking Online Funds Transfer

We give the employees the facility to transfer funds online from any part of the world.

Mobile Banking Phone Banking Free Utility Bill Payments

The employees can pay utility bills like electricity; phone bills etc. using KARNATAKA

Bank Internet Banking.

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Reimbursement Account

If the employee opts to disburse/reimburse the travel, food etc. expenses via

reimbursement accounts, a reimbursement account can be opened simultaneously along

with the Salary Account savings bank account, which would be linked together with the

debit card already held by your employee.

Free Remittance Facilities

Salary Account customers can avail of free remittance (demand drafts, cheques, pay

orders) up to Rs.25, 000 on KARNATAKA Bank network.

Cash Delivery and Cheque Pick-up Facility

Bureau de change

The employees can meet all their foreign currency needs, buy internationally valid

travelers cheques issued by Thomas Cook, American Express, VISA and avail of a host

of other travel related services.

FEDREAL BANK

Federal Bank Limited is a major Indian commercial bank in the private sector,

headquartered at Aluva, Kochi,Kerala. It is the fourth largest bank in India in terms

of capital base[1]

. As of 18 August 2012, Federal Bank has 1000 branches spread

across 24 states in India and 1058ATMs around the country(across 108 metro

centres, 224 urban centres, 384 semi-urban locations and 87 rural areas). Federal

Bank opened its 1000th branch at Muthoor, Thiruvalla in Kerala on 17 August

http://en.wikipedia.org/wiki/Aluvahttp://en.wikipedia.org/wiki/Kochi,_Indiahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Federal_Bank#cite_note-1http://en.wikipedia.org/wiki/Federal_Bank#cite_note-1http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Federal_Bank#cite_note-1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Kochi,_Indiahttp://en.wikipedia.org/wiki/Aluva

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2012,[2]

and is planning to hire 2000 professionals by September 2012.[3][4]

The

Bank would be the first Bank from Kerala to cross the world.

Salary Power

Salary Savings Account from Fedreal Bank has been tailored not only to be a

convenient way to manage salaries (across various centers, through our centralized

database), but also provide employees with a range of value added benefits.

Salary Savings Account comes with a host of facilities that give the employees

access to a complete gamut of banking services (including overdrafts, loans and

zero-balance requirements) on a preferential basis.

Salary Power : Features

Balance RequirementZero balance account.

Anywhere Banking. International Debit cum ATM Card

Personal Accident Insurance cover of up to Rs 2 lacs per cardholder. Cash

withdrawal of up to Rs 25,000 daily. Purchase protection and Zero Card

Liability.

Joint Account Facility Flexi (2-in-1) Encash Deposits

http://en.wikipedia.org/wiki/Federal_Bank#cite_note-2http://en.wikipedia.org/wiki/Federal_Bank#cite_note-2http://en.wikipedia.org/wiki/Federal_Bank#cite_note-2http://en.wikipedia.org/wiki/Federal_Bank#cite_note-3http://en.wikipedia.org/wiki/Federal_Bank#cite_note-3http://en.wikipedia.org/wiki/Federal_Bank#cite_note-3http://en.wikipedia.org/wiki/Federal_Bank#cite_note-3http://en.wikipedia.org/wiki/Federal_Bank#cite_note-3http://en.wikipedia.org/wiki/Federal_Bank#cite_note-2

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Demand DraftsFree Demand Drafts drawn on Fedreal Bank Branches.

Overdraft Facility :Up to 50% of net salary at Personal Loan rates.

Outstation ChequesFree collection, only out-of-pocket expenses to be recovered.

Demat Account Financial Advisory Services Optional Gold Debit Card Credit Cards Online Trading Built-In Insurance (Medical and Burglary) scheme

Unique facility of availing Insurance option in built in the account

available.

Built-in SIP schemeUnique facility of availing SIP option in built in the account available.

Priority Banking

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Reduced balance criteria for availing Priority Banking that entitles you to

exclusive banking and lifestyle privileges.

Internet BankingAvailable as iConnect with enhanced features like free bill payments (eg,

electricity bills) and electronic payment of premiums (LIC - Insurance

Premium) at select centers.

Telebanking Mobile Banking Nomination Facility Funds Transfer

Transfer funds from Salary Power account to any bank account in India

free of charge.

Meal CardThe best substitute for the traditional Sodexho/Accor Meal

coupons/vouchers.

Gift CardPrepaid, Rupee Denominated, Non Reloadable card - Ideal for Gifting.

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SWOT OF CORPORATE SALARY ACCOUNTS

STRENGTHS

Well Established and RecognizedMost competing banks have been in the business of providing corporate salary accounts

since a few years now. Over this period they have build mass recognition.

Global networkOther banks with their global network offer unmatched advantages to the

companies. The customer can open a salary account with other banks and can

transact with the bank globally at convenient locations.

WEAKNESSES

Undifferentiated ProductMost banks are offering similar features in their corporate salary account products.

AdvertisementsThere are very few banks that are promoting their corporate salary accounts

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Undifferentiatedproducts

Advertisements Same as

mentioned later in

this section for

federal bank

Entry byforeign &private banks

into this

business

Well established &recognized for theirCorporate Salary

Accounts

Small global network

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compared to FEDREAL Bank. There are very few advertisements coming out of

other banks.

OPPORTUNITIES

It is the same as that of FEDERAL. Please refer to the next section.

THREATS

Entry of new playersSince entry barriers to this business are low for a bank, the greatest threat is foreign

banks, which can provide better services.

EMPLOYEE PRODUCTIVITY

Employee productivity is the amount ofgoods andservices that a worker produces in a given

amount of time. It is one of several types ofproductivity thateconomists measure. Workforce

productivity can be measured for a firm, a process, an industry, or a country. It is often referred

to as labor productivitybecause it was originally studied only with respect to the work of

laborers as opposed to managers orprofessionals.

The OECD defines it as "the ratio of a volume measure of output to a volume measure of

input".[1]

Volume measures of output are normally gross domestic product(GDP) or gross value

added (GVA), expressed at constant prices i.e. adjusted for inflation. The three most commonly

used measures of input are:

1. hours worked;2. workforce jobs; and3. number of people in employment.

Measurement

Workforce productivity can be measured in 2 ways, in physical terms or in price terms.

http://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Workforce_productivity#cite_note-1http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-1http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-1http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_value_addedhttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Workforce_productivity#cite_note-1http://en.wikipedia.org/wiki/OECDhttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Productivityhttp://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Goods

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the intensity of labour-effort, and the quality of labour effort generally. the creative activity involved in producing technical innovations. the relative efficiency gains resulting from different systems of management, organization,

co-ordination or engineering.

the productive effects of some forms of labour on other forms of labour.

These aspects of productivity refer to the qualitative dimensions of labour input. If an

organization is using labour much more intensely, one can assume it's due to greater labour

productivity, since the output per labour-effort may be the same. This insight becomes

particularly important when a large part of what is produced in an economy consists of services.

Management may be very preoccupied with the productivity of employees, but the productivity

gains of management itself is very difficult to prove. While labor productivity growth has been

seen as a useful barometer of the U.S. economys performance, recent research has examined

why U.S. labor productivity rose during the recent downturn of 20082009, when U.S. gross

domestic product plummeted.[2]

The validity of international comparisons of labour productivity can be limited by a number ofmeasurement issues. The comparability of output measures can be negatively affected by the

use of different valuations, which define the inclusion of taxes, margins, and costs, or different

deflation indexes, which turn current output into constant output.[3]

Labor input can be biased by

different methods used to estimate average hours[4]

or different methodologies used to estimate

employed persons.[5]In addition, for level comparisons of labor productivity, output needs to be

converted into a common currency. The preferred conversion factors are Purchasing Power

Parities, but their accuracy can be negatively influenced by the limited representativeness of the

goods and services compared and different aggregation methods.[6]

To facilitate international

comparisons of labor productivity, a number of organizations, such as the OECD, theGroningen

Growth Centre, International Labor Comparisons Program, and The Conference Board, prepare

productivity data adjusted specifically to enhance the datas international comparability.

[edit]Factors affecting labour productivity

In a survey of manufacturing growth and performance in Britain, it was found that:

The factors affecting labour productivity or the performance of individual work roles are of

broadly the same type as those that affect the performance of manufacturing firms as a whole.

They include: (1) physical-organic, location, and technological factors; (2) cultural belief-value

and individual attitudinal, motivational and behavioural factors; (3) international influences

e.g. levels of innovativeness and efficiency on the part of the owners and managers of inward

investing foreign companies; (4) managerial-organizational and wider economic and political-

legal environments; (5) levels of flexibility in internal labour markets and the organization of

work activitiese.g. the presence or absence of traditional craft demarcation lines and barriers

http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-2http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-2http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-2http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-3http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-3http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-3http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-4http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-4http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-4http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-5http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-5http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-5http://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Workforce_productivity#cite_note-6http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-6http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-6http://en.wikipedia.org/wiki/OECD#Statisticshttp://www.ggdc.net/http://www.ggdc.net/http://en.wikipedia.org/wiki/Division_of_international_labor_comparisonshttp://en.wikipedia.org/w/index.php?title=Workforce_productivity&action=edit&section=2http://en.wikipedia.org/wiki/File:US_productivity_and_real_wages.jpghttp://en.wikipedia.org/w/index.php?title=Workforce_productivity&action=edit&section=2http://en.wikipedia.org/wiki/Division_of_international_labor_comparisonshttp://www.ggdc.net/http://www.ggdc.net/http://en.wikipedia.org/wiki/OECD#Statisticshttp://en.wikipedia.org/wiki/Workforce_productivity#cite_note-6http://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Purchasing_Power_Parityhttp://en.wikipedia.org/wiki/Workforce_productivity#cite_note-5http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-4http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-3http://en.wikipedia.org/wiki/Workforce_productivity#cite_note-2

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Review of Literature

The literature has been done on the employee productivity and the factors affecting

the employees productivity.

Devatia and Venkataehalam (1978) in their study proposed a composite index

which they believe would be able to investigate the efficiency of bank operations

and profitability. The main elements of this composite index are operational

efficiency in terms of productivity, social objective and profitability.

Srivastava (1981) tries to build a relationship between the productivity and

profitability of commercial banks. He argues that an important reason of low

productivity is because of low productivity, and low efficiency could be the result

of ineffective time that occurs due to defect in the form-design, inefficient methods

of operations, bad layouts, excessive product variety, bad working conditions,

power breakdown and poor maintenance of records.

Ojha (1992) in his study attempts to measure the productivity of public sector

commercial banks in India. After identifying various measure of productivity like

total assets per employee, total credit per employee, total deposits per employee,

pre tax profit peremployee, net profit per employee, working funds per

employee, ratio of establishment expenses to working funds and net interest per

employee, comparison is made with the banks at the international level. The study

concludes that Indian banks have very less productivity ratios compared with

western countries. Since in his study a comparison has been made of Indian public

sector banks, which have to perform other social functions unlike western

commercial banks.

T. Padamasai (2000) studied that productivity and profitability of five big banks

increased throughout the post-reforms period in terms of selected ratios of each

parameter, but on account of efficiency, the performance of the top five banks is

very dismissal as inefficiency has increased during the study period. He suggested

that if the government sells its share in the profit making banks, it would be able to

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bail out the weak banks.

Sharad Kumar and M. Sreeramulu (2001) have compared the employee

productivity and employee cost ratios between the traditional banks and modernbanks from 1997 to 2008. The study concludes that the performance of the modern

banks (foreign and new private sector banks) was much superior to the traditional

banks (public sector and old private sector banks). However, the gap between the

performance of modern and traditional banks on all the five variables has shown a

decreasing trend, which has significantly reduced during the period of 12 years

under study, on account of the measures taken by the traditional banks during

the period.

B. Janki, (2002), analyzed in his article that how technology is effecting

employees productivity. There is no doubt, in India particularly PSBs will need to

use technology to improve operating efficiency and customer services. Harnessing

employee technology synergy is crucial for unleashing productivity and reaching

out to the huge base of retail customers, who are also dispersed in rural and

semi-urban areas. Banks can use technology to address customer needs and

improve their interaction with customer keeping in touch through telephone and

Internet. The focus on technology will increase like never before to add Value tocustomer service, develop new products, strengthen risk management, and asset

liability management and improve profitability. However technology is only an

enabling tool and whether banks actually what they want to achieve will be

determined by the drive and motivation of their work force and response of the

staff.

Arora, U. and Verma, R. (2005) studied the performance evolution of Public Sector

Banks in the post reforms period on the basis of four parameters that are financial

parameters, operational parameters, profitability parameters and productivity

parameters and during this period the performance of public Sector banks is quite

satisfactory.

Leonardo Gambacorte (2006), analyzed an important element of the macro-

prudential analysis is the study of the link between business cycle fluctuations and

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banking sector profitability and how this link is affected by institutional and

structural characteristics. This work estimates a set of equations for net interest

income, non-interest income, operating costs, provisions, and profit before taxes,

for banks in the main industrialized countries and evaluates the effects on

banking profitability of shocks to both macroeconomic and financial factors.

Distinguishing mainly the euro area from Anglo-Saxon countries, the analysis also

identifies differences in the resilience of the respective banking systems and

relates them to the characteristics of their financial structure.

Santi Gopal Maji and Soma Dey (2006) investigate the productivity and

profitability of five large Indian private sector banks and five large Indian private

sector banks.

Shefali Tiwari (2006) analyzed the relationship between factors influencing

efficiency with deposits, assets and advances separately of public sector banks,

private sector banks and foreign sector banks. She also studies the different

efficiency factors related to employees, per branch, operations, liquidity, ultimate

profits, deposits, assets and advances.

Kadian W. Wanyama* and S. N. Mutsotso has written article which is based on a

research project carried out on commercial banks in Kakamega Central District,

Kenya focusing on the influence of employee productivity on organizationalperformance which investigated the impact of capacity building and employee

productivity in Commercial banks since this leads to increase in performance as

empirical research has proved. Kenya has experienced banking problems since

independence in 1964 culminating in major Bank failures (37 failed banks as at

1998). Some of these problems like weak supervision and equipping employees

with expertise, necessary skills and knowledge can be addressed through

employee productivity to improve performance of the banks. Banks in Kenya and

Kakamega in particular have experienced poor service delivery, organizationalineffectiveness, poor public relations, customer dissatisfactions, and some of

these banking institutions have posted a decline in profitability. Research focusing

on the firm-level impact of human resource management practices such as

employee productivity, satisfaction and motivation has become popular in recent

years. This has revitalized interest in the subject of employee productivity and its

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impact on the performance of organizations. Most studies tend to indicate that

employee competence has a positive effect on the organizational performance.

Therefore the findings from the study added value to the expanding scope of

existing research studies on the influence of employee productivity on the

organizational performance. This paper also provides vital information to

organizational managers in the banking sector and academicians to encourage

employee motivation, satisfaction and future research.

Swati Sinha measured the growth of a bank through various measures like

deposits, advances, working funds, incomes, expenditures, profits, assets, number

of account and branches etc. The role of employees is also of great significance as

each and every activity of a bank is directly related to the attitude, motivation and

work culture of the employees. Therefore, the parameters, which are used to

measure the efficiency of banks, should also include the performance of

employees. In the present study, the employee productivity performance analysis

of SBI has been performed on the basis of two ratios i.e. working funds per

employee ratio and operating profit per employee ratio.

OUTCOME OF THE LETERATURE REVIEW

The researcher found that the banks totally depend on many factor which are mainly

categorized as internally and externally. In case we talk about internal factors like

efficient services, more branded product availability and all products arranged in a

particular place. And external factors are customer perception to advertising of the

brand, promotional strategy and preference of customer to our branded product.

Advertising is one of the important factors which have an impact on consumer

behaviour.

From the above discussion it appears that there is no previous research done about

impact of advertising on consumer purchase behaviour of banks at Indore. Therefore

the researcher is proposing a study to fill the said gape.

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Rationale of Study

Employee productivity recognizes the importance of output per unit. Bank is a

service providing organization, where it is very important that, how employees

are given their output. Their accountability towards the bank is very necessary. Intodays complex business environment, many of the factors that influence bank

performance are beyond the control of management. As such, we must

continually improve the ways we manage the things we can control. The bottom

line is that the link between employee performance and corporate performance

and real Shareholder value is indisputable.

Objectives

1) To study the changes in the employee productivity in Federal Bank.

2)To study the changes in the employee productivity in Karnataka Bank.

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RESEARCH

DESIGN

A research design is a framework or blueprint for conducting the marketing research

project .it details the procedure necessary for obtaining the information needed to structure

and/or solve marketing research problems. The research design provides a specific detail as to

how to implement

the approach. A good research design will ensure that marketing research project is

conducted effectively and efficiently. Typically, a research design involves the following

components, or tasks:

Define the information needed.

Design the exploratory, descriptive and /or causal phases of the research

Specify the measurement and scaling procedures

Construct and pretest the questionnaire or an appropriate form of data collection

Specify the sampling process and sample size

Develop a plan for data analysis

Research designs may be broadly classified as exploratory or conclusive researches. The

primary objective of exploratory research is to provide insights into, and an understanding ofthe problem confronting the researcher. The information needed is only loosely defined at

this stage and the research process adopted is flexible and unstructured. The primary data is

qualitative in nature. Usually these researches are followed by further exploratory research or

conclusive research.

Conclusive research is done to assist the decision maker in determining, evaluating and

selecting the best course of action to be taken in a given situation. The objective of conclusive

research is to test specific hypotheses and examine specific relationships.

The researches conducted in this study begin with a predominantly exploratory research design

and then continues towards a descriptive research design approach to arrive at the final

findings and courses of action. The objective of the exploratory research is to explore or to

search through the problem or situation to provide insights and understanding exploratory

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researches can b used for the following purposes:

Formulate a problem or define a problem more precisely

Identify alternative courses of action

Develop hypothesis

Isolate key variables and relationships for further examination

Gain insights to develop an approach to a problem

Establish priorities for further research.

QUESTIONNAIRE

DESIGN

Knowing what the client wants is the key factor to success in any type of business. And the

best way to find this information is to conduct a research or a survey. As desired by the

company, the method of research adopted was - Questionnaire. A questionnaire is a structured

technique for data collection that consists of a series of questions which might be multiple

choice, numeric open- ended, or text open-ended.

Objectives of a

Questionnaire

Any questionnaire has three specific objectives. First, it must translate the information needed

into a set of specific questions that the respondents can and will answer. Developing

questions that respondents can and will answer and that will yield the desired information

is difficult. Two apparently similar ways of posing a question may yield different information.

Second, a questionnaire must uplift, motivate, and encourage the respondent to become

involved in the interview, to cooperate, and to complete the interview. Incomplete

interview has limited

usefulness at best. In designing the questionnaire, we tried to minimize the respondent

fatigue, boredom, incompleteness, and no response.

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Third, a questionnaire should minimize response errors. Response error

arises when respondents give inaccurate answers or their answers are

misreported or misanalysis. And a questionnaire can be a major source of

response error.

Procedure for Data

CollectionData collection means gathering information to address those critical evaluation questions that

may be in the minds of the company/ researcher. And the procedure for data collection to

be adopted depends on the requirements of the company. As specified by ONICRA Rating

Agency of India Ltd., we were required to make a thorough research of the existing market as

well as the potential it posses for the credit rating that SMERA offers.For the purpose of data collection, firstly we identified our target population, which were

spread over huge area, organized and unorganized market. This was done with the help

of internet, database provided by the company as well as cold callings.

We identified some of the important issues in this regard. Thesewere:

1. Availability: We realized that there may be some information already available that can

help answer some questions or guide the development of new guidelines. Hence we

reviewed information in prior records, reports, and summaries.

2. Pilot Testing: It was essential to test the information collection instrument or the process

we designed.

3. Protocol Needs: In many situations, we needed to obtain appropriate permission or

clearance to collect information from people or other sources.

4. Reactivity: Reactivity refers to how the way of asking a question would alter the

response we would get. It may also be a concern if our presence during data collection may

possibly alter the results.5. Reliability: Will the evaluation process designed consistently measure what we want it

to measure? That is whether multiple interviews, settings, or observers, will consistently

measure the same thing each time? In whatever instrument we design, will people interpret

our questions the same way each time?

6. Validity: Validity means will the information collection methods designed produce

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information

that measures what we require to measure? We should be sure that the information we

collect is relevant to the purpose in hand.

Having kept these issues in mind, we adopted the following methods for

data collection:

1.Personal Interview

An interview is called personal when the Interviewer asks the questions face-to-face with

the Interviewee. Personal interviews were conducted in malls, organized as well as

unorganized markets, Petrol Pumps, bus stands etc. These were mainly of the form of

structured interviews.

2Questionnaire

A questionnaire is a structured technique for data collection that consists of a series of

questions that a respondent answers. The questionnaire (which forms a part of the

annexure) comprised of multiple choice, numeric open-ended as well as text-open ended

questions, depending on the nature of the query.

ANALYSIS AND INTERPRETATION

Findings

We learned to convince top business executives to give us sometime from their busy

schedule so that we could apprise them in detail about our product, by seeking their

appointment in a way that aroused their interest and curiosity in our product

We learned to find out the right person to contact for our purpose, even without having

any reference or previous knowledge of the company.

We learned to customize our way of presentation depending upon the target audience,

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whether it was Prop., partnership, company, HUF.

We learned to tempt these people to but our product

We learned to build a close relationship with people even if they are not willing to rate

their organization.

We learned to extract sensitive information from our respondents

We got an insight about the work culture of corporate.

QUESTIONNAIRE

1) Is the worker required to follow INSTRUCTIONS?

2) Will the worker receive TRAINING?

3) . Is there a CONTINUING RELATIONSHIP?

4) How do you feel about your progress to date? Are you where you

thought you would be?

5) In the past year, what achievements in organisation development are

you most proud of?

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6) Are FULL TIME work hours required?

7) Is there SIGNIFICANT INVESTMENT by the consultant?

8) Is SERVICE AVAILABLE to GENERAL PUBLIC?

9) Does your client provide you with training to enable you to perform a

job in a particular method or manner?

10)How will the employee performance align to company future ?

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References

Agarwal, M. (2005), Liberalizations Effect on Operational Productivity ofCommercial Banks in India, IBA Bulletin, XXVII(6), June, 33-44

Amandeep (1993) Profits and Profitability in Commercial Banks, New Delhi,Deep & Deep Publications.

Annual Reports of Federal Bank and Karnataka Bank B. Janki (2002). Unleashing Employee Productivity: Need for a Paradigm Shift.

Indian Banking Association Bulletin. XXIV (3). March. 7-9.

Bhattacharya, A. (1997), The Impact of Liberalization on the ProductiveEfficiency of Indian Comercial Banks, European Journal of Operational

Research, 98 (5), 332-345

Chaudhary, C.M. (1992) Dynamics of Indian Banking, Jaipur, Printwell Das A (2002) Risk and productivity change of Public Sector Banks, EPW,

February 2, pp.437-447.

Websites:

www.Federalbank.co.in

www.Karnatakabank.com

www.rbi.org.in

www.wikipedia.org

www.moneycontrol.com

www.investopedia.com

http://www.karnatakabank.com/http://www.karnatakabank.com/http://www.karnatakabank.com/