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SUMMER INTERNSHIP PROJECT REPORT
On
Human Resource Information System
Submitted in partial fulfilment for the award of
Post Graduate Diploma in Management
Approved by AICTE, Ministry of HRD, Govt. of India
By
Sonali SethAICTE Enrollment No. 30/IILM/UP/PGDM/FT/0...
Batch 2010-12
Under the Supervision of
Dr. Suman Pathak Associate Professor
IILM Academy of Higher Learning1, Viraj Khand, Gomti Nagar, Lucknow – 226010
1
IILM Academy of Higher Learning (Approved by AICTE 1,Viraj Khand, Gomti Nagar (Near Dr. Hahnemann Crossing), Lucknow-226010 Web: www.iilmlko.ac.in E-mail: director@iilmlko.ac.in Phone: 0522-2727292-296, Fax: 0522-2727291
Certificate by Faculty Guide
This is to certify that Ms. Sonali Seth, student of PGDM Batch 2010-12, AICTE
Enrolment No. 09/IILM/UP/PGDM/FT/030 has successfully completed her
Summer Internship in BFC Capital Pvt Ltd. and prepared a Summer Internship
Project Report on Human Resource Information System.
This Project Report is submitted in partial fulfilment for the award of Post
Graduate Diploma in Management, approved by AICTE, Ministry of HRD, and
Government of India.Her work is original and authentic and to the best of my
knowledge has not been copied from anywhere.
I wish her all the best in life.
Faculty Guide
2
Company Feedback Format
Company : ______________________ Location:______________
Intern Name : Ms. /Mr. _____________________________________
Internship Commencement Date : _______________
Internship Completion Date : _______________
Evaluation ParameterRating (out of 10 on each
parameter)
Knowledge & Content
Knowledge of Industry
Practical Application of Knowledge
Learning on the Job
Ability to grasp new Idea
Communication Skills
Interpersonal Skills
Writing Skills
Presentation Skills
Attitude
Ability to put in hard work
Attendance/Reliability/ Dependability
Team Spirit
Receptiveness
Miscellaneous
Supervisory Skills
Target Achievement
Employability
Total
Remarks /Suggestions
Assessor’s Name : __________________
Designation with Seal : __________________Contact Number : ____________________ E-mail:____________________
DECLARATION FORM
3
I hereby declare that the Summer Internship Project Work entitled, “Human
Resource Information System” submitted by me, Sonali Seth, AICTE
Enrolment No. -201001030 for the partial fulfillment of the Post Graduate
Diploma in Management Programme (PGDM) to IILM Academy of Higher
Learning, Lucknow is my own original work and has not been submitted earlier
either to IILM or to any other Institution for the fulfillment of the requirement for
any course of study. I also declare that no chapter of this manuscript in whole or in
part is lifted and incorporated in this report from any earlier / other work done by
me or others.
Company Name: BFC Capital Pvt Ltd
Address:
Name : Sonali Seth
Signature
Preface4
In spite of the theoretical knowledge gained through class room study, a person is incomplete if
not subject to practical exposure of real corporate world and may have to face hurdles, which
will be difficult to overcome without any firsthand experience of business.
In this context two months summer training has been design to make the person aware of hap-
pening of the real business world. The report, entitled “HRIS” has been done by me at BFC Cap-
ital Pvt Ltd, Lucknow
5
ACKNOWLEDGEMENT
A single person alone can never be credited for performing any extraordinary work successfully. It is only possible with the continuous and constant help and guidance that one receives from mentors and guides.A single person can never be credited for performing any project successfully. The kind support and guid-ance of so many made it a success. First of all I want to convey my heartfelt thanks to the Director Maj. -Gen. B D Wadhwa for his permission to go for a project and his through out inspiration for ethical work.
I also want to convey my regards to my company supervisor Ms Richa Khanna (HR) for her constant sup-port and help for continuously during my summer internship. I want to convey my gratitude to my faculty guide Dr. Suman Pathak (Professor) for her timely response via e-mail and calls which immensely helped in giving the project the initial direction it needed.
Finally, I would like to say that the project has helped me apply the HR concepts I have learnt and gather new skills. Thank you, once again to all my mentors and guides, as without their help and support, it would never have happened so easily, in such short duration of time.
Table of Content6
Introduction of BFC Capital 8-10
Organizational Structure at BFC Capital 11
Products/services 11
Competitors 12
SWOT analysis 13
Micro Research o Uses of Human Resource Information
System
14-48
Objective of study 49
Research Methodology 50
Analysis 51-64
Recommendation 65
Conclusion 66
Bibliography 67
Questionnaire 68-71
INTRODUCTION OF BFC CAPITAL
7
BFC Capital is a company promoted by young professionals with a vision to place the organization
among the best Financial Service Providers. Company’s main endeavor is to provide solutions to an in-
vestor, after assessing the requirements of the client, by understanding his profile for risk, return, liquidity
& tax liability. The organization has its orientation towards enhancing its customer service standards at all
times.
QUALITY POLICY
i. BFC Capital strives to be market leaders in the field of investment consultancy and financial
planning by ensuring continual improvement and exceeding client expectations.
ii. Company adjust and adapt to the changing needs of our clients and endeavor to develop and de-
liver the tailor made solutions to the clients within standard time duration and honor client’s feed-
backs
iii. BFC CAPITAL (P) Ltd. is committed to provide a process driven work environment and culture
which promotes initiatives, innovations and team work by developing human resource.
iv. The policy of the company ensures a work culture that leads to innovative solutions with a “No
Compromise with quality Standards” Statement.
. BUSINESS OF BFC CAPITAL
i. Personalized Investment Advisory
ii. Financial Planning services to Individuals, Corporate, Institutions, Non-Resident Indians (NRIs),
Trusts and High Net worth Clients.
iii. Providing solutions to an investor, after assessing the requirements of the client,
iv. Understanding client’s profile for risk, return, liquidity & tax liabilitmain
Endeavor is to provide solutions to an investor, after assessing the requirements of
8
HR POLICY OF THE COMPANY:-
The HR Policies of the company are one of the best in the industry and known for its transparency.
However, following are some reasons to join BFC Capital:
Work culture: though the work in the company is demanding, yet the professional work culture of
the company makes everyone to be involved and feel a sense of ownership towards the organization.
Career Growth: The performance appraisal system of the company very well ensures that the
performers be rewarded without any reasonable delay. The quarterly appraisal system of the company
provides instant rewards to the one who is performing and set examples for the others.
Personal Growth: since the company has its main focus on the quality of manpower working with
it, regular training programmes is being run by the company for developing and upgrading inter-
personal skills of its employees
Balance between formal and informal atmosphere: The company is of the opinion that
providing informal platform to our members will certainly boost their energy to perform even better.
The company organizes various off-sites and other informal activities to put a flavor of entertainment.
Job security and job satisfaction. The company has four tier machinery for the rigorous scrutiny
of the prospective employees and once a person has been selected, he/she is treated like a member of
the company and we ensure that he/she leaves the company only for the betterment of the career and
not because of any grievance with the management or their policies. The company has its own
grievance redressal system for the members and any kind of grievance reported by any member,
directly goes to Grievance redressal committee headed by CEO of the company.
Good Packages: The most important reason for joining BFC Capital is that it provides one of the
best compensation in the industry apart from fixed compensation; the company offers lucrative
incentive policies and bonus also.
CUSTOMERS OF THE COMPANY9
i. TRUSTS
ii. GOVERNMENT BANKS
iii. CORPORATES
iv. INSTITUTIONS.
AWARDS
I. CERTIFICATE OF APPRECIATION.( TATA MUTUAL FUND)
II. CERTIFICATE OF ACHIEVEMENT (RELIANCE MUTUAL FUND)
III. CERTIFICATE (HDFC LONG TERM EQUITY FUND).
IV. CERTIFICATE (ICICI PRUDENTIAL MUTUAL FUND).
V. CERTIFICATE(ABN AMRO ASSET MANAGEMENT
CAREER ORIENTAION IN BFC CAPITAL
BFC Capital deals in investment advisory and therefore the quality of company depends upon the quality
of manpower working with the company. The company regularly and continuously strives to upgrade the
skills and efficiency of their work force and to provide them a process driven atmosphere to perform so
that everyone knows about the responsibilities and authorities in specific terms.
ORGANIZATION STRUCTURE
10
PRODUCT AND SERVICES
i. Mutual Fund
ii. Insurance
iii. Fixed Deposit
iv. Bonds
v. Post Office schemes
vi. Personal Tax Planning
vii. Portfolio management services
COMPITITOR OF BFC CAPITAL
11
BFC CAPITAL (P) LIMITED
MR.SHARAD BINDAL
(DIRECTOR)
MR.SUNIL GUPTA
(DIRECTOR)
MR ALOK BINDAL
SALES TEAM HR DEPARTMENT
OPERATION DEPARTMENT
BFC INFRATEL P.LIMITED
12
SWOT ANALYSIS
i. Strength
ii. Weakness
iii. Opportunities
iv. Threats
STRENGTHS:
i. Highly co-operative and skilled staff.
ii. Effective and wider distribution network.
iii. Product designed for every area of personnel.
WEAKNESS:
i. Weak presence in the rural and urban cities
ii. Lack of promotional activities..
OPPORTUNITIES
i. There is continuous growth in this sector.
ii. Other sections of the society to be searched for business.
THREATS
i. Competition in the sector is increasing with the entry of lots of private giants with the collabora-
tion of foreign giants.
13
Uses of Human Resource Information System In BFC Capital
14
What is HRM?
Human Resource Management (HRM) is the function within an organization that focuses on recruitment
of, management of, and providing direction for the people who work in the organization. Human Re-
source Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with issues related to people such
as compensation, hiring, performance management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.
15
HRM processes
This sub section illustrates the processes involved in executing the HRM functions. Each of the
functions: planning, recruitment, selection, orientation and training, performance appraisal etc.
goes through a process.
Planning process
Human Resource Planning (HRP) process reviews human resources re-
quirements to ensure that the organization has the required number of employees, with the neces-
sary skills, to meet its goals, also known as employment planning. HRP is a proactive process,
which both anticipates and influences an organization’s future by systematically forecasting the
demand for and supply of employees under changing conditions, and developing plans and activ-
ities to satisfy these needs. Key steps include forecasting demand for labor considering organiza-
tional strategic and tactical plans, economic conditions, market and competitive trends, social
concerns, demographic trends, and technological changes.
Recruitment process
Recruitment is the process of searching for and attracting an adequate
number of qualified job candidate, from whom the organization may select the most appropriate
to field its staff needs. The process begins when the need to fill a position is identified and it ends
with the receipt of résumés and completed application forms. The result is a pool of qualified job
seekers from which the individual best matching the job requirements can be selected. The steps
in recruitment process include identification of job openings, determination of job requirements,
choosing appropriate recruiting sources and methods, and finally, generating a pool of qualified
recruits. Job openings are identified through human resource planning or manager request. Next
is to determine the job requirements. This involves reviewing the job description and the job
specification and updating them, if necessary. Appropriate recruiting sources and methods are
chosen because there is no one, best recruiting technique. Consequently, the most appropriate for
any given position depend on a number of factors, which include organizational policies and
plans, and job requirements.
16
Selection process
Selection is the process of choosing individuals with the relevant qualifica-
tions to fillexisting or projected openings. Data and information about applicants regarding cur-
rentemployees, whether for a transfer or promotion, or outside candidates for the first time posi-
tion with the firm are collected and evaluated. The steps in the selection process, in ascending or-
der include preliminary reception of applicants, initial applicant screening, selection testing, se-
lection interview, background investigation and reference checking, supervisory interview, real-
istic job previews, making the hiring decision, candidate notification, and evaluating the selec-
tion process. However, each step in the selection process, from preliminary applicant reception
and initial screening to the hiring decision, is performed under legal, organizational, and environ-
mental constraints that protect then interests of both applicant and organization.
Orientation, training and development process
Employee orientation is the procedure of
providing new employees with basic background information about the firm and the job. Is more
or less, considered as one component of the employer’s new-employee socialization process. So-
cialization process is an ongoing process of initialing in all employees the prevailing attitudes,
standards, values, and patterns of behavior that are expected by the organization. Training how-
ever is the process of teaching new or present employees the basic skills/competencies needed to
perform their jobs. Whereas training focuses on skills and competencies needed to perform em-
ployees’ current jobs, employee and management development is the training of long-term na-
ture. The aim is to prepare current employees for future jobs with the organization or solving an
organizational problem concerning, for example, poor interdepartmental communication. Train-
ing and development processes include needs analysis, instructional design, validation, imple-
mentation, and evaluation and follow-up.
Career planning and development process
It is the deliberate process through which persons
become aware of personal career related attributes and the lifelong series of activities that con-
tribute to their career fulfillment. Individuals, managers, and the organization have role to play in
career development. Individuals accept responsibility of own career, assess interests, skills, and
values, seek out career information and resources, establish goals and career plans, and utilize
17
development opportunities. The career stage identification entails career cycle (the stages
through which a person’s career evolves). These stages include the following: growth, explo-
ration, establishment, maintenance, and decline stages. Occupational orientation identification is
the theory by John Holland. This theory enumerates six basic personal orientations that deter-
mine the sorts of careers to which people are drawn. They include realistic orientation, investiga-
tive orientation, social orientation, conventional orientation, enterprise orientation, and artistic
orientation
Performance appraisal process
Performance appraisal may be defined as any procedure that
involves setting work standards, assessing employee’s actual performance relative to these stan-
dards, and providing feedback to the employee with the aim of motivating the worker to elimi-
nate performance deficiencies or to continue to perform above par. Processes in performance ap-
praisal contain three steps: defining performance expectations, appraising performance, and pro-
viding feedback. First, defining performance expectation means making sure that job duties and
standards are clear to all. Second, appraising performance means comparing employees’ actual
performance to the standards that has been set, which normally involves some type of rating
form. Third, performance appraisal usually requires one or more feedback sessions to discuss
employees’ performance and progress and making plans for any required development. Some of
the appraisal methods include graphic rating scale, alternation ranking, paired comparison,
forced distribution, and critical incident methods.
Employee Compensation and benefits process
Employee compensation involves all forms of
pay or rewards accrued to employees and arising from their employment. This however consists
of two main components: direct financial payments, and indirect payments. While direct finan-
cial payments are in the form of wages, salaries, incentives, commissions, and bonuses, indirect
payments are in the form of financial benefits like employer-paid insurance and vacations. More-
over, legal considerations in compensation, union influences, compensation policies, and equity
and its impact on pay rates are the four basic considerations influencing the formulation of any
pay plan.
Benefits are indirect financial payments given to employees. These may include
18
supplementary health and life insurance, vacation, pension, education plans, and
discounts on say company products. Furthermore, income and medical benefits to victims of
work-related accidents or illness and/or their dependents, regardless of fault are all part of em-
ployees’ compensation. The processes in establishing pay rates involve the following five steps:
First, conducting wages / salary survey to determine the prevailing wage rates for comparable
jobs, which is central in job pricing. Second, determine the relative worth of each job (job evalu-
ation) by comparing the job content in relation to one another in terms of their efforts, responsi-
bility, and skills. This eventually results in wage or salary hierarchy. Third, group similar jobs
into pay grades, a pay grade comprises of jobs of approximately equal value or importance as de-
termined by job evaluation. Forth, price each pay grade using wage curves. A wage curve is
graphical description of the relationship between the value of job and the average wage paid for
the job. However, if jobs are not grouped into pay grades, individual pay rates have to be as-
signed to each job. Fifth, fine tune pay rates. This involves correcting out-of-line rates and usu-
ally developing rate ranges.
Occupational health and safety process
Occupational health and safety process aims at pro-
tecting the health and safety of workers by minimizing work-related accidents and illnesses.
Laws and legislations to ensure and observe general health and safety rules bound employers.
More so, rules for specific industries, for example, mining and rules related to specific hazards,
for instance, asbestos have to be adhered to. The following steps are important in this process.
Checking for or removing unsafe conditions by using checklist to audit a company’s adherence
to safety rules that are guarded against hazards, which cannot be removed.Next, through selec-
tion, screening out of employees who might be accident prone for job in question without com-
promising the human right legislation. More so, establishing a safety policy, this emphasizes on
the importance of practically reducing accidents and injuries. Setting specific loss control goals
by analyzing the number of accidents and safety incidents and then set specific safety goals to be
achieved. Enforcing safety rules through discipline and conducting health and safety inspections
regularly by investigating all accidents and near misses, and by having a system in place for let-
ting employees notify management about hazardous conditions.
What is HRIS?
19
HRIS as a technology-based system used to acquire, store, manipulate, analyze, retrieve, and distribute
pertinent information regarding an organization’s human resources. HRIS as a systematic procedure for
collecting, storing, maintaining, retrieving, and validating data needed by organization about its human
resources, personnel activities, and organization unit characteristics. Furthermore, HRIS shape an integra-
tion between human resource management (HRM) and Information Technology. It merges HRM as a dis-
cipline and in particular basic HR activities and processes with the information technology field.
Components of an HRIS
The three major functional components in any HRIS by giving the model below:
Input Data Maintenance Output
The Input function enters personnel information into the HRIS. Data entry in the past had been
one way, but today, scanning technology permits scanning and storage of actual image off an
original document, including signatures and handwritten notes. The
maintenance function updates and adds new data to the database after data have been
entered into the information system. Moreover, the most visible function of an HRIS is
the output generated. According to Kovach et al., (1999), to generate valuable output for
computer users, the HRIS have to process that output, make the necessary calculations, and then
format the presentation in a way that could be understood. However, the note of caution is that,
while it is easy to think of HR information systems in terms of the hardware and software pack-
ages used to implement them and to measure them by the number of workstations, applications
or users who log onto the system, the most important elements of HRIS are not the computers,
rather, the information. The bottom line of any comprehensive HRIS have to be the information
validity, reliability and utility
Users of HRIS applications20
HRIS meet the needs of a number of organizational stakeholders. Typically, the people in the
firm who interact with the HRIS are segmented into three groups
1. HR professionals,
2. Managers in functional areas (production, marketing, engineering etc.)
3. Employees
HR professionals rely on the HRIS in fulfilling job functions (regulatory reporting and compli-
ance, compensation analysis, payroll, pension, and profit sharing administration, skill inventory,
benefits administration etc.). Thus, for the HR professional there is an increasing reliance on the
HRIS to fulfill even the most elementary job tasks. As human capital plays a larger role in com-
petitive advantage, functional managers expect the HRIS to provide functionality to meet the
unit’s goals and objectives. Moreover, managers rely on the HRIS’s capabilities to provide supe-
rior data collection and analysis, especially for performance appraisal and performance manage-
ment.
Additionally, it also includes skill testing, assessment and development, résumé
processing, recruitment and retention, team and project management, and management
development (Fein, 2001). Finally, the individual employees become end users of many
HRIS applications. The increased complexity of employee benefit options and the
corresponding need to monitor and modify category selections more frequently has
increased the awareness of HRIS functionality among employees. Web-based access and self-
service options have simplified the modification process and enhanced the usability of many
benefit options and administration alternative for most employees.
HRIS can be applied in the following areas of HRM
21
1. HR planning
2. Succession planning
3. Work force planning
4. Work force dynamics analysis
5. Staffing
6. Applicant recruitment and tracking
7. Employee data base development
8. Performance management
9. Learning and development
10. Compensation and benefits
11. Pay roll
12. Job evaluation
13. Salary survey
14. Salary planning
15. International compensation
16. Benefits management
17. Develop innovative Org. Structure
18. Develop IT
HRIS functions
22
Functional HRIS must create an information system that enables an assimilation of
policies and procedures used to manage the firm’s human capital as well as the procedure neces-
sary to operate the computer hardware and software applications (Hendrickson, 2003). While in-
formation technology affects Human Resource (HR) practices (Lengick- Hall et al., 2003) HRIS
and HRIS administration comprise a distinct supporting function within HR. Some of the HRIS
functions include the following
Integrating the Technologies of HR
Is a fact, that developments in Information Technology
have dramatically affected traditional HR functions with nearly every HR function (example,
compensation, staffing, and training) experiencing some sort of reengineering of its processes.
However, this process of change has created significant challenges for HR professionals result-
ing in the transformation of traditional processes into on-line processes
.
Increased Efficiency
Rapid computing technology has allowed more transactions to occur
with fewer fixed resources. Typical examples are payroll, flexible benefits administration, and
health benefits processing. Though technologies of early mainframes provided significant effi-
ciencies in these areas, the difference is that the record processing efficiencies that were once
only available to large firms are now readily available to any organization size (Ulrich, 2001).
Increased Effectiveness
Most often, as with processes, computer technology is designed to
improve effectiveness either by in terms of the accuracy of information or by using the technol-
ogy to simplify the process. This is especially the case where large data sets require reconcilia-
tion. However, onerous manual reconciliation processes may be executed faster, but also with
near perfect accuracy using automated systems. For instance, pension and profit sharing applica-
tions, benefits administration, and employee activities are just to mention but a few. Using com-
23
puter technology in these processes ensures accurate results and offer substantial simplification
and timeliness over manual processing. Consequently, the vast majority of HR functions have
had some degree of automation applied in order to gain both efficiency and effectiveness.
IT-Enabled Processes
While many of the application areas’ gains are through increased ef-
fectiveness and efficiency over manual processing, some are only possible using contemporary
technologies. Most notably, computer-based (web-based) training is a growing area of HR prac-
tice that was not available until computer software was created. Even computerbased training
was not as practical as it is today because it was geographically dispersed until the training was
upgraded from computer-based to web-accessible training. However, by taking traditional com-
puter-based training programs and making them accessible on the Internet, firms have created a
powerful tool to upgrade and assess employee skill sets. Moreover, many other traditional HR
functions have evolved information Technology (IT) -dependent components with the advent of
the Internet. Online recruitment centers, along with the ability to conduct virtual interviews,
background checks, and personnel tests on-line have dramatically changed those processes, in-
creasing the geographic reach of firms for potential employees.
Cost and benefit of HRIS
An HRIS system represents a large investment decision for
companies of all sizes. Therefore, a convincing case to persuade decision makers about the HRIS
benefits is necessary. The common benefits of HRIS frequently cited in studies included, im-
proved accuracy, the provision of timely and quick access to information, and the saving of costs
(Lederer, 1984; Wille and Hammond, 1981). Lederer (1984) discussed why the accuracy and
timeliness of HRIS is very important in terms of operating, controlling, and planning activities in
HR. In addition, Kovach et al., (2002) listed several administrative and strategic advantages to
using HRIS. Similarly, Beckers and Bsat (2002) pointed out at least five reasons why companies
should use HRIS. These are:
24
1. Increase competitiveness by improving HR practices
2. Produce a greater number and variety of HR operations
3. Shift the focus of HR from the processing of transactions to strategic HRM
4. Make employees part of HRIS, and
5. Reengineer the entire HR function
In their 2002, HRIS survey, Watson Wyatt found that the top four metrics used in formal
business cases supporting HRIS were improved productivity within HR organization,
cost reductions, return on investment, and enhanced employee communications.
However, companies realize many of these cost reductions and efficiency gains early in
the implementation of an HRIS system, so they provide compelling evidence needing to
get a project up and running. In fact, the payback period, or the time it takes to recoup the invest-
ment, may be as short as one to three years (Lego, 2001). HRIS contribute to cost reductions,
quality/customer satisfaction, and innovation (Broderick and Boudreau,
1992). According to Sadri and Chatterjee (2003) computerized HRIS function enable,
faster decision making, development, planning, and administration of HR because data is much
easier to store, update, classify, and analyze. Moreover, while it may be possible to identify
many of the relevant costs (e.g., software and hardware), it is more difficult to quantify the intan-
gible benefits to be derived from an HRIS system. Beyond cost reductions and productivity im-
provements, HRIS potentially and fundamentally affect revenue channels. However, establishing
direct and objective benefits measures is more difficult to achieve. On the other hand, there are
costs associated with HRIS implementation. Moreover, to capitalize on all HR possibilities,
workers need to have personal computers and global Internet connections. Some companies fa-
cilitate this by providing employees computer discount programs to encourage home usage. In
addition, there is inevitably transition costs associated with moving from traditional HR to an
HRIS, including slowdowns, mistakes, and other consequences associated with changing legacy
systems to integrated suites (Brown, 2002). Hardware costs for servers and software costs for ap-
plication programs entail sizeable initial outlays and continuing costs over time as better technol-
ogy becomes available. While many companies are adopting HRIS systems and extolling their
benefits, others are reluctant in embarking on such an expensive and timeconsuming change.
Nevertheless, some firms are adopting less complex forms before attempting to transform their
25
HR departments. However, for those who have already adopted HRIS, many are yet to realize its
full benefits. A survey by Towers Perrin found that whiles 80 percent of respondents affirmed
employee self-service ability to lower FIR costs, only 5 percent fully achieved this objective; an-
other 35 percent had only partially achieved that objective, and only 3 percent was accelerating
HR's.
HRIS Benefits:
HRIS has showed many benefits to the HR operations. A few of them can be detailed as;
1. Faster information process,
2. Greater information accuracy,
3. Improved planning and program development, and
4. Enhanced employee communications (Overman, 1992).
HRIS systems include the employee name and contact information and all or
some of the following:26
1. department,
2. job title,
3. grade,
4. salary,
5. salary history,
6. position history,
7. supervisor
8. training completed,
9. special qualifications,
10. ethnicity,
11. date of birth,
12. disabilities,
13. veterans status,
14. visa status,
15. benefits selected,
16. and more.
HRIS include reporting capabilities. Some HRIS track applicants before they become employees. Some
HRIS systems are interfaced to payroll or other financial systems
Following Areas of HR functions will manage through HRIS in BFC Capital
1. Applicant tracking Employee Personnel File Management 27
2. Company Related Documents such as employee manuals and safety programs
3. Benefits Administration including enrollment
4. Manager and Employee Self Service modules
5. Complete reporting for each feature
6. Payroll integration
7. Financial Software integration
Features such as payroll and financial software integration are usually additional expenses and
have very specific setup requirements. Discuss these options in detail with your HRIS vendor
before agreeing to these features. For some companies, this may be a requirement, however
many small and medium sized companies do not see a significant return on investment for this
feature.
Human Resources Management (HRM) is the Recruitment, selection, retention, development,
and utilization of labor resource in order to achieve both individual and organizational
objectives. Human Resources Information Systems (HRIS) is an integration of HRM and
Information Systems (IS). HRIS or Human resource Information system helps HR managers
perform HR functions in a more effective and systematic way using technology. It is the system
used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information
regarding an organization's human resources. A human resource information system (HRIS) is a
system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information
about an organization's human resources (Tannenbaum, 1990). The HRIS system is usually a part
of the organization's larger management information system (MIS) which would include
accounting, production, and marketing functions, to name just a few. Human resource and line
managers require good human resource information to facilitate decision-making.
Objective of HRIS can be listed as follows:
28
I. Effective Planning and Policy Formulation:
HRIS Provides Support for future planning and also for the
policy formulation, both at macro and micro levels. At
enterprises or micro level, forms the basis for HRM and
more particularly HRP.
II. Monitoring and Evaluation:
HRIS facilitates monitoring of human resources demand
and supply imbalance and evaluation of the policy on
development and utilization of human resource.
III. Providing Input to Strategic Decisions:
HRIS provides required inputs to enterprises-wide strategic
decisions, like redundancy, rightsizing, competency
profiling, change of technology , etc. other automate
employee related information , cost minimization , faster
response to employee related service faster HR related
decision ( like promotion , transfer , payroll administration ,
compensation planning , man power planning, etc.
Wealth management
29
Wealth management is an investment advisory discipline that incorporates financial planning,
investment portfolio management and a number of aggregated financial services. High Net
Worth Individuals (HNWIs), small business owners and families who desire the assistance of a
credentialed financial advisory specialist call upon wealth managers to coordinate retail banking,
estate planning, legal resources, tax professionals and investment management. Wealth managers
can be an independent Certified Financial Planner, MBAs, Chartered Strategic Wealth
Professional,[1] CFA Charterholders or any credentialed professional money manager who works
to enhance the income, growth and tax favored treatment of long-term investors. Wealth
management is often referred to as a high-level form of private banking for the especially
affluent. One must already have accumulated a significant amount of wealth for wealth
management strategies to be effective. Wealth management company are as follows:
1. Axis Bank
2. Citi Bank
3. ICICI Bank
4. Kotak Mahindra Bank
5. HDFC Bank
30
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted
jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India As-
surance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Com-
pany Ltd.
The Bank as on 31st March, 2011 is capitalized to the extent of Rs. 410.54 crores with the public
holding (other than promoters and GDRs) at 53.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The
Bank has a very wide network of more than 1281 branches (including 169 Service Branches/
CPCs as on 31st March, 2011). The Bank has a network of over 6270 ATMs (as on 31st March,
2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest
ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to adopting the
best industry practices internationally in order to achieve excellence.
On June 16, 1812, with $2 million of capital, City Bank of New York (which is now
known as Citibank) opened for business in the City of New York in the United States to serve a 31
group of New York Merchants. First headed by Samuel Osgood, and taken over by Moses Tay-
lor, it became the largest bank in the United States by holdings as of March 2007. Citibank is
now the corporate and consumer banking arm of Citigroup.
Citigroup was previously known as First National City Corporation in 1968 and was re-
named as Citicorp. In 1998, Citicorp merged with the Travelers Group to form Citigroup Inc.
Citibank. Under the trademark of Citigroup’s umbrella, includes Citibank, CitiFinancial, Primer-
ica, Smith Barney, Banamex, and Travelers Life and Annuity. Citicorp and Travelers Group $70
million merger resulted in Citicorp, the 2nd largest commercial bank at that time and Travelers
Group which was a leading insurance and investment banking company.
Previously, Citibank was also involved in the Enron Litigation. In 2002, Salmon Smith
Barney was under investigation for involvement in the Enron Corporate fraud. April 28, 2003
brought an announcement by Citigroup that Citigroup Global Markets Inc. (formerly known as
Salomon Smith Barney) had reached an agreement to resolve outstanding investigations. On July
28, 2003, Citigroup agreed to pay a $130 million fine to the Securities and Exchange Commis-
sion and the New York State. As a result, Citigroup will not be liable for any wrongdoings.
In Malaysia, Citibank reaches out to its customers through three main branches in
Kuala Lumpur, Penang, and Johor Bahru. Due to the loosening up in some of the banking regula-
tions in Malaysia, four new branches have been newly established by Citibank to help to further
increase the convenience of its customers. The four new branches are located at Klang,
Damansara Perdana, Bukit Tengah, and Puchong. Among the various services provided by
Citibank includes credit cards, retail banking, financing, corporate and investment banking, life
insurance, and investment management.
Recently, Citibank has plans to initiate a 17,000 job cuts which amounts to 5% of the Citigroup’s
global workforce. Despite this, employees of Citibank Bhd in Malaysia are spared from the re-
duction in Citibank’s workforce. Instead, Citibank Bhd Cards Business director, Vipin Agrawal
said that they are still continuously hiring people in Malaysia. This is due to the healthy
Malaysian credit card market (8.8 million cards in circulation) which has increased rapidly from
7.9 million in 2005. Citibank aims to maintain its 20% of market share in 2007.
Citibank has been known world wide for being one of the largest commercial banks,
spanning across six continents and over 100 countries. Together with its 200,000 over employ-
32
ees, it continues to be a major player in the banking industry. Despite this, due to the constantly
changing environment and also the rapid increase in knowledge workers in the society, upward
potential and mobility for Citibank to grow is almost limitless. As Charles Darwin, father of the
theory of evolution, once said, “It is not the strongest species that survives, but the species most
adaptive to change.” The same goes to the banking and finance industry.
Therefore Citibank must not only be the leading pioneer in innovation of financial ser-
vices but it must also be sensitive to the changes in the current global and local environment.
Due to a globalizing world, competition has increased in the banking and finance sector. This
forces governments worldwide to loosen the regulations concerning this sector enabling foreign
banks to further penetrate into the local market. We can see that Citibank is exploiting these ad-
vantages by establishing four more branches in peninsular Malaysia. It is expected that local bar-
riers and regulations will continue to be removed. Therefore Citibank should continue to be on
the lookout for opportunities to further reach out into previously impenetrable target market.
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institu-
tion, in 1994. Four years later, when the company offered ICICI Bank's shares to the public,
ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity
offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the
33
first Indian company and the first bank or financial institution from non-Japan Asia to be listed
on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalga-
mation. Later in the year and the next fiscal year, the bank made secondary market sales to insti-
tutional investors.
With a change in the corporate structure and the budding competition in the Indian Banking in-
dustry, the management of both ICICI and ICICI Bank were of the opinion that a merger be-
tween the two entities would prove to be an essential step. It was in 2001 that the Boards of Di-
rectors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-
owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. In the following year, the merger was approved by its share-
holders, the High Court of Gujarat at Ahmedabad as well as the High Court of Judicature at
Mumbai and the Reserve Bank of India.
Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed
on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-
largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion,
for the nine months, that ended on December 31, 2008.
Branches & ATMs
ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420
branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its pres-
ence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its sub-
sidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has estab-
lished branches in Belgium and Germany.
34
Products & Services
Personal Banking
Deposits
Loans
Cards
Investments
Insurance
Demat Services
Wealth Management
NRI Banking
Money Transfer
Bank Accounts
Investments
Property Solutions
Insurance
Loans
Business Banking
Corporate Net Banking
Cash Management
Trade Services
FXOnline
SME Services
Online Taxes
Custodial Services
35
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd,
was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval
36
from RBI, for setting up a bank in the private sector. The bank was incorporated with the name
'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its op-
erations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches
and over 3275 ATMs across India.
Amalgamations
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank pro-
moted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first
two private banks in the New Generation Private Sector Banks to have gone through a merger. In
2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With
this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs.
89,000 crore and Balance Sheet size was Rs. 1,63,000 crore.
Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms of infor-
mation technology or communication systems. All the braches of the bank boast of online con-
nectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the
bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to re-
tail clients. The bank makes use of its up-to-date technology, along with market position and ex-
pertise, to create a competitive advantage and build market share.
Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this
the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group
holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about
17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares
(ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Ex-
change, Mumbai and National Stock Exchange, while its American Depository Shares are listed
on the New York Stock Exchange (NYSE), under the symbol 'HDB'.
37
Products & Services
Personal Banking
Savings Accounts
Salary Accounts
Current Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards
Prepaid Cards
Investments & Insurance
Forex Services
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
NRI Banking
Rupee Savings Accounts
Rupee Current Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quickremit (North America, UK, Europe, Southeast Asia)
IndiaLink (Middle East, Africa)
38
Cheque LockBox
Telegraphic / Wire Transfer
Funds Transfer through Cheques / DDs / TCs
Mutual Funds
Private Banking
Portfolio Investment Schemes
Loans
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
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 ap-
proval created banking history since Kotak Mahindra Finance Ltd. is the first non-banking fi-
nance 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.
Our Reach39
Kotak Mahindra Bank has over 322 branches and a customer account base of over 2.59 million.
Spread all over India, not just in the metros but in Tier II cities and rural India as well, we are
redefining the reach and power of banking.
Our Offerings
We cater to the myriad needs of Resident Individuals, NRIs and Businesses.We offer complete
financial solutions for infinite needs of all individual & non-individual customers depending on
the customer's need - delivered through a state of the art technology platform. Investment prod-
ucts like Mutual Funds, Life Insurance, retailing of gold coins and bars etc are also offered. The
Bank follows a mix of both open and closed architecture for distribution of the investment prod-
ucts. All this is backed by strong, in-house research on Mutual Funds.
What is mutual fund?
A mutual fund is a professionally managed type of collective investment that pools money from
many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.
A mutual fund is registered with the Securities and Exchange Commission (SEC) and is overseen by
a board of directors (if organized as a corporation) or board of trustees (if organized as a trust). The
board is charged with ensuring that the fund is managed in the best interests of the fund's
investors and with hiring the fund manager and other service providers to the fund. Mutual funds
are not taxed on their income as long as they comply with certain requirements established in the
Internal Revenue Code. Specifically, they must diversify their investments, limit ownership of
voting securities, distribute most of their income to their investors annually, and earn most of the
income by investing in securities and currencies.[2] Mutual funds pass taxable income on to their
investors. The type of income they earn is unchanged as it passes through to the shareholders. 40
For example, mutual fund distributions of dividend income are reported as dividend income by
the investor. There is an exception: net losses incurred by a mutual fund are not distributed or
passed through to fund investors.
Advantages of mutual funds
Mutual funds have advantages compared to direct investing in individual securities.[3] These in-
clude:
Increased diversification
Daily liquidity
Professional investment management
Ability to participate in investments that may be available only to larger investors
Service and convenience
Government oversight
Ease of comparison
Disadvantages of mutual funds
Mutual funds have disadvantages as well, which include[4]:
Fees
Less control over timing of recognition of gains
Less predictable income
No opportunity to customize
Types of mutual funds
41
Open-end funds
Open-end mutual funds must be willing to buy back their shares from their investors at the end
of every business day at the net asset value computed that day. Most open-end funds also sell
shares to the public every business day; these shares are also priced at net asset value. A profes-
sional investment manager oversees the portfolio, buying and selling securities as appropriate.
The total investment in the fund will vary based on share purchases, redemptions and fluctuation
in market valuation.
Closed-end funds
Closed-end funds generally issue shares to the public only once, when they are created through
an initial public offering. Their shares are then listed for trading on a stock exchange. Investors
who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can
with an open-end fund). Instead, they must sell their shares to another investor in the market; the
price they receive may be significantly different from net asset value. It may be at a "premium"
to net asset value (meaning that it is higher than net asset value) or, more commonly, at a "dis-
count" to net asset value (meaning that it is lower than net asset value). A professional invest-
ment manager oversees the portfolio, buying and selling securities as appropriate.
Unit investment trusts
Unit investment trusts or UITs issue shares to the public only once, when they are created. In-
vestors can redeem shares directly with the fund (as with an open-end fund) or they may also be
able to sell their shares in the market. Unit investment trusts do not have a professional invest-
ment manager. Their portfolio of securities is established at the creation of the UIT and does not
change. UITs generally have a limited life span, established at creation.
Exchange-traded funds
A relatively recent innovation, the exchange-traded fund or ETF is often structured as an open-
end investment company, though ETFs may also be structured as unit investment trusts, partner-
42
ships, investments trust, grantor trusts or bonds (as an exchange-traded note). ETFs combine
characteristics of both closed-end funds and open-end funds. Like closed-end funds, ETFs are
traded throughout the day on a stock exchange at a price determined by the market. However, as
with open-end funds, investors normally receive a price that is close to net asset value. To keep
the market price close to net asset value, ETFs issue and redeem large blocks of their shares with
institutional investors.
What is Bond?
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depend-
ing on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at
a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed
intervals.[1]
Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the
coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments,
or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or com-
mercial paper are considered to be money market instruments and not bonds.
Types of Bond
The following descriptions are not mutually exclusive, and more than one of them may apply to
a particular bond.
Fixed rate bonds have a coupon that remains constant throughout the life of the bond.
Floating rate notes (FRNs) have a variable coupon that is linked to a reference rate of interest,
such as LIBOR or Euribor. For example the coupon may be defined as three month USD LIBOR
+ 0.20%. The coupon rate is recalculated periodically, typically every one or three months.
43
Zero-coupon bonds pay no regular interest. They are issued at a substantial discount to par
value, so that the interest is effectively rolled up to maturity (and usually taxed as such). The
bondholder receives the full principal amount on the redemption date. An example of zero coupon
bonds is Series E savings bonds issued by the U.S. government. Zero-coupon bonds may be cre-
ated from fixed rate bonds by a financial institution separating ("stripping off") the coupons from
the principal. In other words, the separated coupons and the final principal payment of the bond
may be traded separately. See IO (Interest Only) and PO (Principal Only).
Inflation linked bonds, in which the principal amount and the interest payments are indexed to
inflation. The interest rate is normally lower than for fixed rate bonds with a comparable maturity
(this position briefly reversed itself for short-term UK bonds in December 2008). However, as the
principal amount grows, the payments increase with inflation. The United Kingdom was the first
sovereign issuer to issue inflation linked Gilts in the 1980s. Treasury Inflation-Protected Securit-
ies (TIPS) and I-bonds are examples of inflation linked bonds issued by the U.S. government.
Other indexed bonds, for example equity-linked notes and bonds indexed on a business indic-
ator (income, added value) or on a country's GDP.
Asset-backed securities are bonds whose interest and principal payments are backed by underly-
ing cash flows from other assets. Examples of asset-backed securities are mortgage-backed secur-
ities (MBS's), collateralized mortgage obligations (CMOs) and collateralized debt obligations
(CDOs).
Subordinated bonds are those that have a lower priority than other bonds of the issuer in case of
liquidation. In case of bankruptcy, there is a hierarchy of creditors. First the liquidator is paid,
then government taxes, etc. The first bond holders in line to be paid are those holding what is
called senior bonds. After they have been paid, the subordinated bond holders are paid. As a res-
ult, the risk is higher. Therefore, subordinated bonds usually have a lower credit rating than senior
bonds. The main examples of subordinated bonds can be found in bonds issued by banks, and as-
set-backed securities. The latter are often issued in tranches. The senior tranches get paid back
first, the subordinated tranches later.
Perpetual bonds are also often called perpetuities or 'Perps'. They have no maturity date. The
most famous of these are the UK Consols, which are also known as Treasury Annuities or Un-
dated Treasuries. Some of these were issued back in 1888 and still trade today, although the
amounts are now insignificant. Some ultra-long-term bonds (sometimes a bond can last centuries:
44
West Shore Railroad issued a bond which matures in 2361 (i.e. 24th century) are virtually per-
petuities from a financial point of view, with the current value of principal near zero.
Bearer bond is an official certificate issued without a named holder. In other words, the person
who has the paper certificate can claim the value of the bond. Often they are registered by a num-
ber to prevent counterfeiting, but may be traded like cash. Bearer bonds are very risky because
they can be lost or stolen. Especially after federal income tax began in the United States, bearer
bonds were seen as an opportunity to conceal income or assets.[4] U.S. corporations stopped issu-
ing bearer bonds in the 1960s, the U.S. Treasury stopped in 1982, and state and local tax-exempt
bearer bonds were prohibited in 1983.[5]
Registered bond is a bond whose ownership (and any subsequent purchaser) is recorded by the
issuer, or by a transfer agent. It is the alternative to a Bearer bond. Interest payments, and the
principal upon maturity, are sent to the registered owner.
Treasury bond, also called government bond, is issued by the Federal government and is not ex-
posed to default risk. It is characterized as the safest bond, with the lowest interest rate. A treasury
bond is backed by the “full faith and credit” of the federal government. For that reason, this type
of bond is often referred to as risk-free.
Post Office Savings Schemes
SCHEME Interest
Payable, Rates, Periodicity etc.
Investment Limits and Denominations
Salient features including Tax Rebate
PostOffice Savings Account
3.5% per annum
on individual/
joint accounts.
Minimum INR 50/-.
Maximum INR
1,00,000/- for an
individual account.
INR 2,00,000/- for
joint account.
Cheque facility available. Interest Tax Free.
5-YearPost Office Recurring
On maturity INR
10/- account
Minimum INR 10/- per
month or any amount
One withdrawal upto 50% of the
balance allowed after one year.
45
Deposit Account
fetches INR
728.90/-. Can be
continued for
another 5 years
on year to year
basis.
Rate of interest
7.5% (quarterly
compounded).
in multiples of INR 5/-.
No maximum limit.
Full maturity value allowed on
R.D. Accounts restricted to that of
INR. 50/- denomination in case of
death of depositor subject to
fulfillment of certain conditions. 6
& 12 months advance deposits
earn rebate.
PostOffice Time Deposit Account
Interest payable
annually but
calculated
quarterly.
Period Rate
1 yr. A/c 6.25%
2 yr. A/c 6.50%
3 yr. A/c 7.25%5 yr. A/c 7.50%
Minimum INR 200/-
and in multiple
thereof. No maximum
limit.
Account may be opened by
individual. 2,3 & 5 year account
can be closed after 1 year at
discount. Account can also be
closed after six months but
before one year without interest.
The investment under this
scheme qualify for the benefit of
Section 80C of the Income Tax
Act, 1961 from 1.4.2007.
PostOffice Monthly Income Account
8% per annum
payable i.e. INR
80/- will be paid
every month on
a deposit of INR
12000/-.
In multiples of INR
1500/- Maximum INR
4.5 lakhs in single
account and INR 9
lakhs in joint account.
Maturity period is 6 years. Can be
prematurely encashed after one
year but before 3 years at the
discount of 2% of the deposit and
after 3 years at the discount of
1% of the deposit. (Discount
means deduction from the
deposit.) A bonus of 5% on
principal amount is admissible on
maturity in respect of MIS
accounts opened on or after
8.12.07.
15year Public Provident Fund Account
8% per annum
(compounded
yearly).
Minimum INR. 500/-
Maximum INR.
70,000/- in a financial
Deposits qualify for deduction
from income under Sec. 80C of IT
Act. Interest is completely tax-
46
year. Deposits can be
made in lumpsum or
in 12 installments.
free. Withdrawal is permissible
every year from 7th financial
year. Loan facility available from
3rd Financial year. No attachment
under court decree order.
KisanVikas Patra
Money doubles
in 8 years & 7
months. Facility
for premature
encashment.
Rate of interest
8.4%
(compounded
yearly)
No limit on
investment. Available
in denominations of
INR. 100/-, INR. 500/-,
INR. 1000/-, INR.
5000/-, INR. 10,000/-,
in all Post Offices and
INR. 50,000/- in all
Head Post Offices.
A single holder type certificate
may be issued to an adult for
himself or on behalf of a minor or
to a minor, can also be purchased
jointly by two adults.
National Savings Certificate (VIII issue)
8% Interest
compounded six
monthly but
payable at
maturity. INR.
100/- grows to
INR 160.10 after
6 years.
Minimum INR. 100/-
No maximum limit
available in
denominations of INR.
100/-, 500/-, 1000/-,
5000/- & INR.
10,000/-.
A single holder type certificate
can be purchased by an adult for
himself or on behalf of a minor or
to a minor. Deposits quality for
tax rebate under Sec. 80C of IT
Act.
The interest accruing annually
but deemed to be reinvested will
also qualify for deduction under
Section 80C of IT Act.
Senior Citizens Savings Scheme
9% per annum,
payable from
the date of
deposit of 31st
March/30th
Sept/31st
December in the
first instance &
thereafter,
interest shall be
payable on 31st
March, 30th
June, 30th Sept
and 31st
There shall be only
one deposit in the
account in multiple of
INR.1000/- maximum
not exceeding rupees
fifteen lakh.
Maturity period is 5 years. A
depositor may operate more than
a account in individual capacity
or jointly with spouse. Age
should be 60 years or more, and
55 years or more but less than 60
years who has retired on
superannuation or otherwise on
the date of opening of account
subject to the condition that the
account is opened within one
month of receipt of retirement
benefits. Premature closure is
allowed after one year on
47
December. deduction of 1.5% interest & after
2 years 1% interest. TDS is
deducted at source on interest if
the interest amount is more than
INR 10,000/- p.a. The investment
under this scheme qualify for the
benefit of Section 80C of the
Income Tax Act, 1961 from
1.4.2007.
Objective of Research
1. To identify the effectiveness of HRIS tool in BFC Capital.
2. To identify various need of installation of HRIS in BFC Capital.
3. To identify various areas where HRIS being used in BFC Capital.
4. To identify the benefits of HRIS in BFC Capital.
48
Research Methodology
The research process consists of a series of closely related activities. At times, the first step determines
the nature of the last step to be undertaken. Why a research study has been undertaken, how the research
problem has been defined, in what why and why the hypothesis has been formulated, what data has been
collected and what particular methods have been adopted and a host of similar other questions are usually
answered when we talk of research methodology concerning a research problem or study. Our main
source of collecting information through Primary data collected in the form of interview. The interviews
with the employees of the organization.
Sources of Data Collection
1. Primary data
2. Secondary data
Primary data sources
1. In-depth discussions(Questionnaire)
49
2. Observation
Secondary data source
1. Reference books
2. Official websites of the company
Analysis Of
Questionnaire50
Q1. Does BFC Capital use an HRIS?
51
0
5
10
15
Strongle Agree Agree Disagree
Strongle Agree 1
Agree 13
Disagree 0
1
Q2. Which HRIS BFC use?
52
0
2
4
6
8
10
12
14
16
Series1
Series1 0 0 14
Sap Oracle Ms Excel
Q3. Does Present HRIS software meet out your daily needs?
53
0
2
4
6
8
10
12
Strongle agree
Agree
Disagree
Strongle agree 3
Agree 11
Disagree 0
1
Q4. Is the technical support for HRIS in BFC Capital satisfactory?
54
7%
93%
0%
Strongle Agree
Agree
Disagree
Q5. Why did you feel the need for installation of HRIS?
55
0
2
4
6
8
10
12
14
Strongle Agree
Agree
Disagree
Strongle Agree 2 2
Agree 8 12
Disagree 4 0
To reduce manpower To reduce cost
Q6. What are the Areas of HRIS being used in BFC Capital?
56
0
2
4
6
8
10
12
14
Strongle Agree Agree Disagree
Strongle Agree 2 0 0 0 1
Agree 12 4 12 3 13
Disagree 0 10 2 11 0
HR Planning Succession
PlanningWorkforce Planning
Workforce dynamics
Staffing
Q7. What are the benefits of HRIS in BFC Capital?
57
0
5
10
15
Strongle Agree Agree Disagree
Strongle Agree 1 1 0 1 1 5
Agree 13 13 14 13 10 9
Disagree 0 0 0 0 3 0
Faster Informati
Greater Informati
Improved
Enhanced
Applicant
Increased
Q8. HRIS will provide which of the following areas of work
58
0
5
10
15
Strongle Agree Agree Disagree
Strongle Agree 1 0 1 0
Agree 1 14 13 3
Disagree 12 0 0 11
Project based work
Employee empowerme
Increase of knowledge
Learning organization
Q9. What features are available for data security?
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0
2
4
6
8
10
12
14
16
YES NO
YES 14 14
NO 0 0
Secure user login Frequent data backup's
Q10. To which extents HRIS helps in fulfillment of following objectives?
60
0
2
4
6
8
10
strongle Agree Agree Disagree
strongle Agree 6 6 6 1
Agree 8 8 8 7
Disagree 0 0 0 6
Effective training of
Effective planning and
Monitoring and
Providing input to
Q11. Which Problems are faced by employers while using HRIS in BFC Capital?
61
0
2
4
6
8
10
12
14
16
Strongle Agree Agree Disagree
Strongle Agree 0 0 0 0 0
Agree 0 0 0 0 0
Disagree 14 14 14 14 14
Lack of managem
Satisfaction with the
No or poorly
Failure to include key
Handing problem
Q12. How will you rate the following features of HRIS in your concern?
62
0
5
10
15
Strongle Agree Agree Disagree
Strongle Agree 6 1 0 0 0
Agree 8 13 14 14 13
Disagree 0 0 0 0 1
SecurityConsistenc
yefficiency Realiability Stability
Q13. How much you are satisfied with current HRIS?
63
0
5
10
15
Strongle Agree Agree Disagree
Strongle Agree 0
Agree 14
Disagree 0
1
RECOMMENDATION
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1. Proper training should be arranged for handling HRIS
2. More areas should explore proper use of HRIS.
3. As they are in the process of enchasing business they can think to opt other software (SAP).
4. The organization need more data feeder for 100% use of HRIS tool.
CONCLUSION
65
BFC Capital Pvt Ltd. is very aggressive financial sector company, which offers a suite of mutual fund,
Fixed deposit, Bond & life insurance policy products to people that meet all your requirements. That is
trying to make its good impact between customers through precisely determine the baseline cost and
profitability of individual customers, segments, channels, products and even transactions, based on
historical performance so, managers spend less time on calculations, focusing instead on delivering the
right products at the right time to targeted customers, in order to drive profitable growth.
During the training with BFC Capital, I gained tremendous experience about HRIS, Training and
development and market strategies. It is a place there we assign with some job responsibilities and these
responsibilities make us capable to establish ourselves to understand the HRIS.
Bibliography
66
First, I collected the primary data directly from BFC Capital employees regarding HRIS & also got the information by employees. I collected the secondary data through Organization employees and Business Research Method books of IILM-AHL College, magazine, & few web sites like:
www.google.com
www.wikipedia.com
www.answer.com
67
Annexure
QUESTIONNAIRE 68
Employee Name: ________ Age: ____________Gender: ___________ Work Experience: _______Organizational Position: ____________
The questionnaire have two type of Questions on the basis of Views and opinion of the respondents Y/ N means Yes and NO Whereas 1, 2, 3 means strongly Agree, Agree, Disagree
1. Does BFC Capital uses an HRIS? a) Yes b) No
2. Which HRIS BFC uses?a) Sap
b) Oracle c) Ms Excel d) Other if any, mention
3. Does Present HRIS software meet out your daily needs?
4. Is the technical support for HRIS in BFC Capital satisfactory?
5. Why did you feel the need for installation of HRIS?
6. What are the Areas of HRIS being used in BFC Capital?
69
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) To Reduce manpower
b) To reduce cost
7. What are the benefits of HRIS in BFC Capital?
8. HRIS will provide which of the following areas of work
9. What features are available for data security?a) Secure user login Y/ Nb) Frequent data backup’s Y/ N
c) Other
10. To which extents HRIS helps in fulfillment of following objectives?70
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) HR Planning
b) Succession Planning
c) Workforce Planning
d) Workforce dynamics analysis
e) Staffing
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) Faster information process
b) Greater information accuracy
c) Improved planning and program development
d) Enhanced employee communications
e) Applicant tracking (employees personal file management)
f) Increased efficiency in administration
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) Project based work environment
b) Employee empowerment
c) Increase of knowledge workers & associated information
d) Learning organization
11. Which Problems are faced by employers while using HRIS in BFC Capital?
12. How will you rate the following features of HRIS in your concern?
13. How much you are satisfied with current HRIS?
71
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a)
b)
Effective training of employees
Effective planning and policy formulation
c) Monitoring and evaluation
d) Providing input to strategic decisions
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) Lack of management commitment
b) Satisfaction with the status quo
c) No or poorly done needs analysis
d) Failure to include key people
e) Handling problem
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
a) Security
b) Consistency
c) Efficiency
d) Reliability
e) Stability
Strongly Agree ( 1 )
Agree ( 2 )
Disagree ( 3 )
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