Group 5 Iciciupload

2008 PROJECT

REPORT ON

ORGANIZATIONAL BEHAVIOR AT ICICI

Nachiketa Arya

CONTENTS PAGE NO. DECLARATION & CERTIFICATE

3

ACKNOWLEDGEMENT

4

1.

INTRODUCTION

2.

ORGANIZATIONAL BEHAVIOR

5

2.1

ORGANIZATIONAL CULTURE

6

2.2

EMPLOYEE ENGAGEMENT

11

2.3

ORGANIZATIONAL EFFECTIVENESS

24

3.

COMPANY PROFILE

28

4.

COMPANY’S STATUS

30

5.

CULTURE 35

6.

OBJECTIVES 39

7.

METHODOLOGY ADOPTED

39

8. ANALYSIS

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9.

10.

SUGGESTIONS 64 REFERENCES 66

INTRODUCTION ORGANIZATIONAL BEHAVIOR Organizations are collections of interacting and inter related human and non-human resources working toward a common goal or set of goals within the framework of structured relationships. Organizational behavior is concerned with all aspects of how organizations influence the behavior of individuals and how individuals in turn influence organizations. (W. Jack Duncan ) Organizational behavior is an inter-disciplinary field that draws freely from a number of the behavioral sciences, including anthropology, psychology, sociology, and many others. The unique mission of organizational behavior is to apply the concepts of behavioral sciences to the pressing problems of management, and, more generally, to administrative theory and practice.

EVALUATION OF BEHAVIORAL SCIENCES IN MANAGEMENT:

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Management thoughts on Behavior

WHAT IS ORGANIZATIONAL CULTURE? Organizational culture is the workplace environment formulated from the interaction of the employees in the workplace. Organizational culture is defined by all of the life experiences, strengths, weaknesses, education, upbringing, and so forth of the employees. While executive leaders play a large role in defining organizational culture by their actions and leadership, all employees contribute to the organizational culture. An organization's culture is comprised of the set of values, beliefs, assumptions, principles, myths, legends, and norms that define how people actually think, decide, and perform. In his book Organizational Culture & Leadership (2nd Edition, 1992, Jossey-Bass), Edgar Schein defines culture as . . ."a basic set of assumptions that defines for us what we pay attention to, what things mean, and how to react emotionally to what is going on, and what actions to take in various kinds of situations.” Definitions given by various authors:

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The culture of a group can now be defined as: A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. (Schein 1992)

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Organization culture is defined by Brent Ruben and Lea Stewart (1998) as the sum of an organization's symbols, events, traditions, standardized verbal and nonverbal behavior patterns, folk tales, rules, and rituals that give the organization its character or personality.

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Gareth Morgan describes culture as "an active living phenomenon through which people jointly create and recreate the worlds in which they live."

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A set of common understandings around which action is organized . . . finding expression in language whose nuances are peculiar to the group. (Becker and Geer 1960).

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A set of understandings or meanings shared by a group of people that are largely tacit among members and are clearly relevant and distinctive to the particular group which are also passed on to new members (Louis 1980).

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Any social system arising from a network of shared ideologies consisting of two components: substance-the networks of meaning associated with ideologies, norms, and values; and forms-the practices whereby the meanings are expressed, affirmed, and communicated to members (Trice and Beyer 1984).

EMERGENCE OF CULTURE: “Organization culture is the emergent result of the continuing negotiations about values, meanings and proprieties between the members of that organization and with its environment.” In other words, culture is the result of all the daily conversations and negotiations between the members of an organization. They are continually agreeing (sometimes explicitly, usually tacitly) about the ‘proper’ way to do things and how to make meanings about the events of the world around them. If you want to change a culture you have to change all these conversations—or at least the majority of them. And changing conversations is not the focus of most change programmes, which tend to concentrate on organizational structures or reward systems or other large-scale interventions.

UNDERSTANDING CULTURE: Page | 5

We can also characterize culture as consisting of three levels (Schein 1988). 1. BEHAVIOR AND ARTIFACTS The most visible level is behavior and artifacts. This is the observable level of culture, and consists of behavior patterns and outward manifestations of culture: perquisites provided to executives, dress codes, level of technology utilized (and where it is utilized), and the physical layout of work spaces. All may be visible indicators of culture, but difficult to interpret. Artifacts and behavior also may tell us what a group is doing, but not why. One cartoon which captures this aspect shows two executives sitting at their desks in an office. Both have large billed black and white checked hats. One is saying to the other, "I don't know how it started, either. All I know is that it's part of our corporate culture." 2. VALUES At the next level of culture are values. Values underlie and to a large extent determine behavior, but they are not directly observable, as behaviors are. There may be a difference between stated and operating values. People will attribute their behavior to stated values. 3. ASSUMPTIONS AND BELIEFS To really understand culture, we have to get to the deepest level, the level of assumptions and beliefs. Schein contends that underlying assumptions grow out of values, until they become taken for granted and drop out of awareness. As the definition above states, and as the cartoon illustrates, people may be unaware of or unable to articulate the beliefs and assumptions forming their deepest level of culture. To understand culture, we must understand all three levels.

ORGANIZATIONAL CULTURE IS ALSO A SYNTHESIS OF SUBCULTURES: Sociologists Gary Fine and Sherryl Kleinman discuss how distinct societies are composites of interacting subcultures rather than a single overarching culture. Organizations consist of subgroups that have specific characteristics and a sense of identification. Within organizations, people can easily classify themselves and others into various social categories or groups based on identification with their primary work group, occupational or professional skills, union membership, or age cohort. (Ouchi 1980, and Ashforth and Mael 1989). Subgroups in organizations can and do create subcultures that comprise specific networks of meaning; yet, at the same time, they remain associated with the ideologies and values of the organization's leadership. For example, at a macro level the culture that is attributed to the Department of Defense comprises the distinct cultures of the different military services and the corps of civil servants assigned to each service agency (Builder 1989). A closer examination of each service culture reveals still greater cultural differentiation among occupational specialties, specific units

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within the service, and between line and staff personnel. Yet all of these subcultures adhere to the core ideologies, values and norms of the DOD. Numerous studies of organizational culture have highlighted that the formation and maintenance of culture requires interpersonal interaction within subgroups. For example, research led by Meryl Louis (Louis, Posner, and Powell 1983) demonstrated the benefits of subgroup interaction to newcomers "learning the ropes" of the jobs. Survey respondents in their first job experience reported that the three most important socialization aids were: • • •

Interaction with peers Interaction with their supervisor Interaction with senior co-workers.

The Four Components of Every Organization Organizations are comprised of four major components: physical (the visible aspects of the organization), infrastructure (the systems and processes for directing and managing work), behavioral (the daily actions and reactions of employees), and cultural (the underlying assumptions, values, beliefs and norms that shape daily behavior). While implementing change at the "higher" levels is possible, as the following graphic suggests, the durability of the change is short-lived without change at the underlying cultural level.

THE INFRASTRUCTURE OF EVERY ORGANIZATION

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Source : www.RussellConsultingInc.com

This is a hierarchical model of the four components of the organization, in which physical aspects of the organization like the structure, tools and processes are the factors which can be easily changed and its changed effect does not last for a longer period. This can be seen as the durability of this change is very less. As we move down the triangle the level of changing the component becomes difficult and it leaves a lasting effect on the employees. The most important parameter of the organization is the prevailing culture. The assumptions, beliefs and norms of the employees and of the organization are not easy to change. So the level of difficulty of change is very high here. If the organization’s culture changes it will have a long lasting effect on the employees. That means the change in the culture is highly durable. So this diagram summarizes that organizations culture should be effective and goal oriented.

CHARACTERISTICS OF STRONG CULTURE

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In the classic book on organizational culture, Corporate Cultures: the Rites and Rituals of Corporate Life (1982), Terrence Deal and Allen Kennedy provide extensive examples of organizations with strong cultures. Four common characteristics that they found are the following: 1. A widely shared philosophy (e.g., "people are our greatest resource" or "customer service is our top priority") 2. A belief in the importance of employees (e.g., through flexible jobs and work hours, absence reserved parking spaces, or open-door management policies) 3. The presence of heroes (i.e., a person or persons who exemplify the philosophy of the organization), and 4. Rituals and ceremonies (e.g., pizza parties every Friday afternoon, company sponsored recreational outings, birthday celebrations for all employees, and so on). Various aspects of an organization can serve as indicators of its organizational culture. For example, modern technology companies often are characterized by their use of open space in which many people work in a large space that is freely accessible to all corporate employees. These companies may also encourage employees to dress casually and to interact in an informal manner. This reflects an organizational belief that hierarchies inhibit creativity and make it difficult for people to do their best work. Contrast this view of organizational culture with a more conservative company in which employees adhere to a generally understood dress code of formal business attire and work in offices that indicate the status of their occupants by the size of the office and the relative quality of its furnishings. These companies believe that formal networks of supervision lead to more productivity by allowing supervisors to monitor employee behavior and provide guidance and sanctions when necessary to keep employees focused on their jobs.

STRATEGIES FOR CHANGING AN ORGANIZATION'S CULTURE In the article "Connecting Culture to Organizational Change" (Human Resources Magazine, March 1996, pp. 84-90), T. Galpin suggests that because changing the basic assumptions and beliefs of the underlying cultural is very difficult, the best approach for influencing specific aspects of a culture that you want to change involves targeting only those components that are most critical for implementing and sustaining the changes that concern you. Galpin suggests targeting one or more of the following cultural components that will help bring about the change that you seek: • • • • •

Rules and policies Goals and measurements Customs and norms Training Ceremonies and events Page | 9

• • • • •

Management behaviors Rewards and recognition Communications Physical environment Organizational structure

ASSESSMENT OF THE CURRENT AND DESIRED ORGANIZATIONAL CULTURE: Before intervening in the culture to effect the desired change, it is important that organizational leaders first document the current organizational culture. This is typically done by exploring leader and employee perceptions of the current organizational practices, norms, customs, and beliefs within Galpin's ten cultural components. In addition, while assessing the current culture, it is just as important to assess employee expectations and aspirations of the desired culture. The overall "gap" between the current and desired culture represents the perceived need for change.

EMPLOYEE ENGAGEMENT INTRODUCTION Engagement at work was conceptualized by Kahn, (1990) as the ‘harnessing of Organizational members’ selves to their work roles. In engagement, people employ and express themselves physically, cognitively, and emotionally during role performances. Employee engagement is the thus the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. Thus Employee engagement is a barometer that determines the association of a person with the organization Kanungo (1982) maintained that job involvement is a ‘Cognitive or belief state of Psychological identification. Job involvement is thought to depend on both need saliency and the potential of a job to satisfy these needs. Thus job involvement results form a cognitive judgment about the needs satisfying abilities of the job. Jobs in this view are tied to one’s self image. Engagement differs from job in as it is concerned more with how the individual employees his/her self during the performance of his / her job. Furthermore engagement entails the active use of emotions. Finally engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs. When Kahn (1990) talked about employee engagement he has given important to all three Aspects physically, cognitively and emotionally. Whereas in job satisfaction importance has been more given to cognitive side.

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HR practitioners believe that the engagement challenge has a lot to do with how Employee feels about the about work experience and how he or she is treated in the Organization. It has a lot to do with emotions which are fundamentally related to drive bottom line success in a company. There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them. “But for the most part employees want to commit to companies because doing so satisfies a powerful and a basic need in connect with and contribute to something significant”. (Archie Thomas, CMA and Ann MacDi 2004) ASPECTS OF EMPLOYEE ENGAGEMENT Three basic aspects of employee engagement according to the global studies are:The employees and their own unique psychological makeup and experience The employers and their ability to create the conditions that promote employee Engagement Interaction between employees at all levels. Thus it is largely the organization’s responsibility to create an environment and culture conducive to this partnership, and a win-win equation. CATEGORIES OF EMPLOYEE ENGAGEMENT According to the Gallup the Consulting organization there are there are different types of people:- “(Jerry Krueger and Emily Killham - 2005) Engaged--"Engaged" employees are builders. They want to know the desired Expectations for their role so they can meet and exceed them. They're naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goal and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their coworkers.

Actively Disengaged--The "actively disengaged" employees are the "cave dwellers." Page | 11

They're "Consistently against Virtually Everything." They're busy acting out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning. IMPORTANCE OF ENGAGEMENT Engagement is important for managers to cultivate given that disengagement or alienation is central to the problem of workers’ lack of commitment and motivation (Aktouf 1992). Meaningless work is often associated with apathy and detachment from ones works (Thomas and Velthouse 1990). In such conditions, individuals are thought to be estranged from their selves (Seeman, 1972) .Other Research using a different resource of engagement (involvement and enthusiasm) has linked it to such variables as employee turnover, customer satisfaction – loyalty, safety and to a lesser degree, productivity and profitability criteria (Harter, Schnidt & Hayes, 2002).An organization’s capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results. Some of the advantages of Engaged employees are:  Engaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success. They will normally perform better and are more motivated.  There is a significant link between employee engagement and profitability.  They form an emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels It builds passion, commitment and alignment with the organization’s strategies and goals  Increases employees’ trust in the organization  Creates a sense of loyalty in a competitive environment  Provides a high-energy working environment  Boosts business growth  Makes the employees effective brand ambassadors for the company A highly engaged employee will consistently deliver beyond expectations. In the workplace research on employee engagement (Harter, Schmidt & Hayes, 2002) have repeatedly asked employees ‘whether they have the opportunity to do what they do best everyday’. While one in Page | 12

five employees strongly agree with this statement. Those work units scoring higher on this perception have substantially higher performance. Thus employee engagement is critical to any organization that seeks to retain valued employees. The Watson Wyatt consulting companies has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profitability. As organizations globalize and become more dependent on technology in a virtual working environment, there is a greater need to connect and engage with employees to provide them with an organizational ‘identity.’

FACTORS LEADING TO EMPLOYEE ENGAGEMENT Studies have shown that there are some critical factors which lead to Employee engagement. Some of them identified are:

Source : Sies Studies

Career Development- Opportunities for Personal Development Page | 13

(Thomas and Velthouse 1990) Organizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realise their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them. Career Development – Effective Management of Talent Career development influences engagement for employees and retaining the most talented employees and providing opportunities for personal development. Leadership- Clarity of Company Values Employees need to feel that the core values for which their companies stand are unambiguous and clear. Leadership – Respectful Treatment of Employees Successful organizations show respect for each employee’s qualities and contribution – regardless of their job level. Leadership – Company’s Standards of Ethical Behavior A company’s ethical standards also lead to engagement of an individual Empowerment Employees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward. Image How much employees are prepared to endorse the products and services which their company provides its customers depends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement.

Other factors Page | 14

Equal Opportunities and Fair Treatment The employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees. Performance appraisal Fair evaluation of an employee’s performance is an important criterion for determining the level of employee engagement. The company which follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement. Pay and Benefits The company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations. Health and Safety Research indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees. Job Satisfaction Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job. Communication The company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high. Family Friendliness A person’s family life influences his wok life. When an employee realizes that the organization is considering his family’s benefits also, he will have an emotional attachment with the organization which leads to engagement.

Co-operation Page | 15

If the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged. HOW TO MEASURE EMPLOYEE ENGAGEMENT? (Gallup Study) Gallup research consistently confirms that engaged work places compared with least engaged are much more likely to have lower employee turnover, higher than average customer loyalty, above average productivity and earnings. These are all good things that prove that engaging and involving employees make good business sense and building shareholder value. Negative workplace relationships may be a big part of why so many employees are not engaged with their jobs. Step I: Listen The employer must listen to his employees and remember that this is a continuous process. The information employee’s supply will provide direction . This is the only way to identify their specific concerns. When leaders listen, employees respond by becoming more engaged. This results in increased productivity and employee retention. Engaged employees are much more likely to be satisfied in their positions, remain with the company, be promoted, and strive for higher levels of performance. Step II: Measure current level of employee engagement Employee engagement needs to be measured at regular intervals in order to track its contribution to the success of the organization. But measuring the engagement (feedback through surveys) without planning how to handle the result can lead employees to disengage. It is therefore not enough to feel the pulse—the action plan is just as essential. Knowing the Degree in which Employees Are Engaged? Employee engagement satisfaction surveys determine the current level of employee engagement. A well-administered satisfaction survey will let us know at what level of engagement the employees are operating. Customizable employee surveys will provide with a starting point towards the efforts to optimize employee engagement. The key to successful employee satisfaction surveys is to pay close attention to the feedback from the staff. It is important that employee engagement is not viewed as a onetime action. Employee engagement should be a continuous process of measuring, analyzing, defining and implementing.

A twelve question survey given to us identifies strong feelings of employee engagement. They are: Page | 16

1. Do you know what is expected of you at work? Employees should know exactly what is expected of them. If expectations are unclear, employees will inevitably face frustration, and will be open for other opportunities where they do know what's expected of them, and where their contributions are measured and recognized. 2. Do you have the materials and equipment you need to do your work right? Employees need the right tools and equipment to support their skills, experience and talents & perform their jobs at an optimum level. 3. At work, do you have the opportunity to do what you do best every day? Knowing the critical demands for every role is to ensure that talents fit those demands. 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seems to care about you as a person? 6. Is there someone at work who encourages your development? Managers must spend most of their time with their most productive talent. Talented, productive people crave time and attention from their managers, and will leave your company if they have a weak relationship (or no relationship) with their manager or supervisor. 7. At work, do your opinions seem to count? 8. Does the mission/purpose of your company make you feel your job is important? The employers should make sure that the opinions of the employee is counted and is made a part of the decision making process. Individual goals should blend with the organizational goals in order to achieve efficiency and efficacy. 9. Are your associates (fellow employees) committed to doing quality work? Co-workers committed to quality.-Many companies arbitrarily put teams together without considering that employees only psychologically commit to teams if they perceive their team members will support their high level of commitment and performance. Talented employees set high standards and depend upon those around them to support their growth toward excellence. 10. Do you have a best friend at work? 11. In the last six months, has someone at work talked to you about your progress? Having a best friend at work or receiving recognition every week makes you feel cared for and proud respectively. If you want to keep recreating those positive emotions, then you keep coming back to work. Page | 17

12. In the last year, have you had opportunities at work to learn and grow? Opportunities to learn and grow- The Company should create an environment that encourages employees to drive towards innovation or to create better systems for more productive results. Great managers always ask what skills and knowledge need to accompany talent to result in the greatest outcome for each. Satisfaction is largely influenced by the services provided to customers. Satisfied, loyal and productive employees create value. Employee’s satisfaction in turn results primarily from high quality support services and policies that enable employees to deliver results to customers. While many organizations are beginning to measure relationship between individual links in the service only a few have related the links in the meaningful ways that can lead to comprehensive strategies for achieving lasting competitive advantage of building employee engagement. Step III: - Identify the problem areas Identify the problem areas to see which are the exact areas, which lead to disengaged employees. Step IV: Taking action to improve employee engagement by acting upon the problem areas Nothing is more discouraging to employees than to be asked for their feedback and see no movement toward resolution of their issues. Even the smallest actions taken to address concerns will let the staff know how their input is valued. Feeling valued will boost employee morale, motivate and encourage future input. Taking action starts with listening to employee feedback and a definitive action plan will need to be put in place finally.

SCARLETT’S LAW OF EMPLOYEE ENGAGEMENT (Ken Scarlett) Scarlett’s First Law Scarlett’s definition of employee engagement is: "An individual's degree of positive or negative emotional attachment to their organization, job, and colleagues." Employee engagement is an individual phenomenon that varies in intensity from extremely positive to extremely negative, and in the middle is a neutral position that is often mistaken for "satisfied." Also notice that this phenomenon is heavily influenced by organizational leadership, policies and procedures, company image, aspects surrounding the job and work, social camaraderie and the physical environment.

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Here is an illustration of engagement expressed as an acceleration lever. At the front forward position there is a predisposed behavioral tendency that favors economic contribution for the organization. At the back end position there is a behavioral tendency that is detrimental to economic contribution. Individuals at this end are disengaged. At the extreme back end, employees are hostile about constructively contributing to the economic benefit of the organization. From this understanding and definition of engagement Scarlett Surveys has developed fifteen global factors or www.scarlettsurveys.com/UserFile "drivers" of engagement which are universal in s/Image measurement application. Employee attitudes towards these drivers heavily influence their behavioral predisposition to economically contribute, add value, or not contribute. Employee engagement can be measured by surveying employee attitudes about these drivers, using a battery of validated questions. Scored responses to these question batteries assess emotional attachment level, intensity of effort propensity, and predict future behavior. What can one predict using this measurement? • • • • • • • • • •

Individual effort Unity of effort Speed of work Quality of work Propensity to innovate Company share of discretionary time (discretionary effort) Propensity to unionize Employee commitment Employee retention Customer retention

It has also been found that our measurement of employee engagement has a lead-lag statistical relationship to customer engagement, provided that the Customer Engagement measures are sound.

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The first set of drivers is called "Hygiene Factors" and the second are called "Motivation Factors." On the X-axis is contribution and on the Y-axis are levels of engagement and commitment. We have found that addressing Hygiene factors alone does not achieve high commitment and full engagement (although it is possible to achieve high contribution with highly measured work with intense supervision). We have found that both sets of drivers need to be managed in order to maximize contribution, retain top talent, maintain a high energy level in the organization, and fully engage employees.

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SCARLETT’S SECOND LAW:

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How direction in time to do something about it? The thought journey begins with Abraham Maslow, the father of Humanistic Psychology. His lifelong studies pointed out the major challenge to predicting human behavior - "You can't manage what you can't measure, you can't measure what you can't define and you can't define what you don't understand". To reverse it, understanding leads to definition which leads to measurement which leads to managing which leads to projection which leads to prediction. Unfortunately, most conversations about employee engagement get stuck in the "lack of common understanding" stage. can organizations best measure employee engagement to increase their return on human capital investment, and, subsequently, how can they use those metrics to reliably predict business Understanding Employee Engagement Employee Engagement is an art - the art of getting people to do whatever is necessary to ensure the continuous high performance and success of the business, and having them love doing it! As such, engagement is the responsibility of leadership. Without good leadership there is no chance of lasting, positive engagement. In this type of Eupsychian environment, employees are continuously learning, growing and achieving. So the conceptual picture or understanding of a fully engaged employee is one who is well led, well motivated and always thinking what they can do for the company. This philosophy addresses the continuously changing nature of work necessary for organizations to follow migrating markets and ensure the continuous high people performance necessary for the perpetuity of the business. Placing this understanding of employee engagement (as a responsibility and art of management) into a human capital / talent management equation enables the organization to move from philosophy to measurable definition.

In this value equation, Competence means the percent of qualified, well trained, skilled talent in each job; engagement is the intensity of individual effort put forth, the motivation, the energy, the get-up-and-go; and organizational opportunity is the enabling of each trained and motivated employee by casting them in the right job, with the right group, with the right tools and support, in the right part of the organization, at the right time. This value equation illustrates how an organization can maximize return on human capital expenditures and maximize employee economic contribution. For ease of communication, the equation can be summed up by the words "Ready, willing, and able" SCARLETT THIRD LAW: It is

learned that the value of engagement and have turned it into a concrete metric. Now Page | 22

Conclusion Employee Engagement is the buzz word term for employee communication. It is a positive attitude held by the employees towards the organization and its values. It is rapidly gaining popularity, use and importance in the workplace and impacts organizations in many ways. Employee engagement emphasizes the importance of employee communication on the success of a business. An organization should thus recognize employees, more than any other variable, as powerful contributors to a company's competitive position. Therefore employee engagement should be a continuous process of learning, improvement, measurement and action.

ORGANIZATIONAL EFFECTIVENESS It is nearly impossible to win without teams and the entire organization moving together fluidly and relentlessly toward a common set of goals. High organizational effectiveness is the breakfast of champions. CONCEPT: Organizational effectiveness is basically defined as the effective rate at which the organization achieves its goals. Towers Perrin - ISR’s premise is that you can build on your organizational effectiveness programs to get an even higher ROI by looking at the organization in a more holistic way. In other words, instead of just working to make individuals more effective, it is important also to Page | 23

work on making the overall organization more effective. There are many ways to improve that transcend individual development and reward systems.

DEFINITIONS BY AUTHORS:

Effectiveness was determined by factors such as production maximization, cost mineralization, technological excellence, etc. -

Frederick Taylor

Effectiveness is a function of clear authority and discipline within an organization. -

Henri Fayol

Effectiveness is a function of productivity resulting from employee satisfaction. - Elton Mayo Companies with high organizational effectiveness: • • • • • •

Align their HR and operational systems Work through high performance teams that deliver results Develop critical skills and encourage their use Communicate up, down, and across the organization Motivate employees to reach beyond even the most ambitious goals Measure results continuously

These companies stand apart from their competitors, as illustrated in this comparison: HIGH ORGANIZATIONAL EFFECTIVENESS

LOW ORGANIZATIONAL EFFECTIVENESS

Effective communications • Informal • Formal • Lateral Passion for results

Communications fuzzy or fragmented

Cynicism and distrust

Limited, focused initiatives

Initiative overload/fatigue Page | 24

Reward for strategic & operational performance

Misaligned reward and incentive systems

Continuous, measurable positive short and long- Lackluster performance, iffy results term business results

Source: www.metrus.com/issues/org-effect.html

Approaches followed: APPROACH

DEFINITION

WHEN USED

Goal Attainment

It accomplishes its stated goals.

Goals are clear, time bound and measurable.

System Resource

It acquires needed resources.

A clear connection exists between inputs and outputs

Constituencies

All strategic constituencies are Constituencies have powerful at least minimally satisfied influence on the organization, and the organization must respond to demands

Internal Processes

Combines internal efficiency and affective health

Costs, outputs and satisfaction are easily measurable.

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CONSTITUENTS OF EFFECTIVE ORGANIZATION:

 How people bring in organizational effectiveness: 1. Passionate about the organization’s desired effect. 2. Appropriately authentic. 3. Eager for feedback as an opportunity for growth. 4. Learning is a personal priority. 5. Willing to hold peers accountable.

 How culture bring in organizational effectiveness: 1. Information is shared freely rather than hoarded. 2. Failures are opportunities for learning. 3. Successes are celebrated and shared. 4. Leadership expressed at all levels of organization. 5. Decentralized decision-making and empowered edges.

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

Impact:

There is no specific definition of impact. But effective organizations share some common characteristics which enable them to understand measure and communicate their impact and to use that information to drive decision-making.

STRATEGIC QUITTING

Strategic quitting is a conscious decision you make based on the choices available to you. If you realize you're at a dead end compared with what you could be investing in, quitting is not only a reasonable choice; it's a smart one.

TOOLS FOR ANALYSIS: The Organizational Effectiveness Profile (OEP) is an assessment tool that enables management to quickly scan the culture of an organization and identify strengths and problems. The standard OEP measures employee evaluations of 31 dimensions (221 items) of organizational health, such as leadership, communication and motivation. It can be used to identify strengths and weaknesses and is an objective means of measuring multiple facets of an organization’s culture. The OEP is normed which means that the data is compared to the data from all other organizations who have participated in the OEP, allowing an organization to evaluate their results relative to other companies. The report provided enables an organization to precisely and accurately define its problems and strengths. Such a definition of problem areas is the key to developing tailored interventions, which effectively address an organization’s developmental needs.

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OUR REPORT ON ICICI

INTRODUCTION Founded in 1955 (as Industrial Credit and Investment Corporation of India) Headquarters ICICI Bank Ltd. ICICI Bank Towers, Bandra,Kurla, Mumbai,India

Key Personnel Board Members Mr. N. Vaghul, Chairman Mr. Sridar Iyengar Mr. Lakshmi N. Mittal Mr. Narendra Murkumbi Mr. Anupam Puri Mr. Arun Ramanathan Page | 28

Mr. M.K. Sharma Mr. P.M. Sinha Prof. Marti G. Subrahmanyam Mr. T.S. Vijayan

Mr. K.V. Kamath, Managing Director & CEO Ms. Chanda Kochhar, Joint Managing Director & Chief Financial Officer Mr. V. Vaidyanathan, Executive Director Ms. Madhabi Puri-Buch, Executive Director Mr. Sonjoy Chatterjee, Executive Director

TOTAL ASSETS Rs. 3,997.95 billion (US$ 100 billion) at March 31,2008. Employees = over 33,000 VISION

“To be the preferred brand for total financial and banking solutions for both corporates and individuals” BACKGROUND ICICI Bank is India's largest private sector bank with a legacy of over 50 years. It has a wide customer base and a leading global presence. ICICI Limited, was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has listed its equity shares on stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). Page | 29

The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. The Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in the UK, Canada and Russia, offshore banking units in Singapore and Bahrain, an advisory branch in Dubai, branches in Sri Lanka, Hong Kong and Belgium, and rep offices in the US, China, United Arab Emirates, Bangladesh, South Africa, Indonesia, Thailand and Malaysia.ICICI Bank has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. HISTORY ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

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SUBSIDIARIES OF ICICI BANK LTD.

• • • • • •

ICICI Lombard General Insurance Company ICICI Prudential Life Insurance Company ICICI Prudential AMC & Trust ICICI Securities ICICI Securities Primary dealership ICICI Venture

AWARDS AND RECOGNITION 2003 • •

"Best Bank of the Year in India" by Finance Asia "Best Foreign Exchange Bank in India" by Global Finance

2004 • • •

"India's Most Admired Private Sector Bank" by Business Barons "India's Most Customer Friendly Bank" by Outlook Money "Best Emerging Market Bank in India" by Global Finance

2005 • • •

The Asian Banker Leadership Achievement Award 2005 for India for Mr.K.V.Kamath Listed in Business Week Top 50 Performers JRD Tata Corporate Leadership Award for Mr.K.V.Kamath

2006 • • • •

CII National Award for Energy Management Reader's Digest India - Most Trusted Brand Award for 2006 voted by consumers Global Finance Award for World's Best Foreign Exchange Bank from India" and the "World's Best Trade Finance from India" Global Finance Award for World's Best Foreign Exchange Bank from India" and the "World's Best Trade Finance from India" ICICI Bank won the "Most Customer Responsive Company" award in the Banking and Financial Services vertical at The Economic Times - Avaya Global Connect Customer Responsiveness Awards

2007 •

ICICI Bank won the "Most Customer Responsive Company" award in the Banking and Financial Services vertical at The Economic Times - Avaya Global Connect Customer Responsiveness Awards 2007 Page | 31

CODE OF BUSINESS CONDUCT AND ETHICS FOR ITS DIRECTORS AND EMPLOYEES ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees: •

• • •

•

ICICI Group expects all its employees, officers and directors to act in accordance with high professional and ethical standards. You must be, and be seen to be, committed to integrity in all aspects of your activities and comply with all applicable laws, regulations and internal policies. In accepting a position with ICICI Group or any of its subsidiaries, each of you become accountable for compliance with the law, with the ICICI Group code of conduct (‘the Code’), and with policies of your respective business units. The standards of the Code are not necessarily prescribed by the regulators - they are something, which a well respected institution must have in place and adhere to on an ongoing basis. We therefore expect a high level of ethical conduct. You must conduct your duties according to the language and spirit of this Code and seek to avoid even the appearance of improper behaviour. You should be aware that even well intentioned actions that violate the law or this Code may result in negative consequences for ICICI Group and for the individuals involved. While covering a wide range of business practices and procedures, these standards cannot and do not cover every issue that may arise, or every situation where ethical decisions must be made, but rather set forth key guiding principles that represent ICICI Group’s policy.

PROGRESS OF ICICI (LAST FIVE YEARS)

2004 : Max Money, a home loan product that offers the dual benefit of higher eligibility and affordability to a customer, introduced. :

Mobile banking service in India launched in association with Reliance Infocomm.

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India’s first multi-branded credit card with HPCL and Airtel launched.

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Kisan Loan Card and innovative, low-cost ATMs in rural India launched.

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ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the achievements of SMEs, a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. Page | 32

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ICICI Bank opened its 500th branch in India.

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ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). The MFI would undertake the promotional role of identifying, training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI.

:

ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a.m. to 8 p.m. from Monday to Saturday.

:

ICICI Bank introduced the concept of floating rate for home loans in India.

2005 : First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi. :

"Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off.

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ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone.

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Private Banking Masters 2005, a nationwide Golf tournament for high networth clients of the private banking division launched. This event is the largest domestic invitation amateur golf event conducted in India.

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First Indian company to make a simultaneous equity offering of $1.8 billion in India, the United States and Japan.

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Acquired IvestitsionnoKreditny Bank of Russia.

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ICICI Bank became the largest bank in India in terms of its market capitalization.

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ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.

2006 : ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets. :

ICICI Bank subsidiary set up in Russia.

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Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians.

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Representative offices opened in Thailand, Indonesia and Malaysia.

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:

ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allows banking transactions to be conducted on the field. A low-cost solution, this became an effective delivery option for ICICI Bank’s micro finance institution partners.

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Financial counseling centre Disha launched. Disha provides free credit counseling, financial planning and debt management services.

:

Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007 : ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. :

Sangli Bank amalgamated with ICICI Bank.

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ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer.

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ICICI Bank’s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia.

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Launched India’s first ever jewellery card in association with jewelry major Gitanjali Group.

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ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card.

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Foundation stone laid for a regional hub in Gandhinagar, Gujarat.

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Introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business.

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ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore.

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ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans.

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In a first of its kind, nation wide initiative to attract bright graduate students to pursue a career in banking, ICICI Bank launched the "Probationary Officer Programme".

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Launched Bank@home services for all savings and current a/c customers residing in India

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ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia. Page | 34

2008 : ICICI Bank enters US, launches its first branch in New York :

ICICI Bank enters Germany, opens its first branch in Frankfurt

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ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones.

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ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche issue backed by four different asset categories. It is also the largest deal in Asia (exJapan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007.

CULTURE: “Organizational culture as the sum of an organization's symbols, events, traditions, standardized verbal and nonverbal behavior patterns, folk tales, rules, and rituals that give the organization its character or personality.” Brent Ruben and Lea Stewart (1998) CULTURE AT ICICI INFRASTRUCTURAL AMBIENCE There's a huge open space on the ground floor, fed by waterfalls. This is the view approximately 1,500 employees of ICICI take in every day and it looks very pleasant. Officially, the office functions between 9.15 am to 5.15 pm. However, most ICICIans come in well before; they stay back later too. Kamath, tries to explain: ''People see excitement and things happening in ICICI. The Vaastu of work atmosphere, workplace and tools has to be in balance. The move to ICICI Towers has created the workplace and tools which are right and the organisation structural changes has given the comfort.'' . It also wants to be wired, and this again shows in the Towers, which has automatic doors, swish cards, an intranet, and a dozen ways to say hello. Exit Barriers With the entry of Vagul in ICICI, it has always strived to be different from its siblings. 1. ICICI’s concentration on technology and speed •

ICICI's push into technology shares a symbiotic relationship with an organization in flux. Smiles Kamath: ''As technology started becoming integral to everything we do, speed became a driver. Speed is a people-centric issue. E-enabling of ICICI was started just 14 months back and we have completed it.''

•

When ICICI's e-technology initiative was implemented, employees had to learn to live with different structures. Some have had to create their own implementation Page | 35

team, because ICICI has given every venture the character of a Valley starter. •

Two to three people become owners of the venture; they have all the have freedom to run and build the team. And 90 days to deliver.

It enjoys both-ambition and a constant state of excitement in the workforce. 2. Passion to win, as conformed by its top executives. 3. Ability of being able to work with the biggest companies and on the biggest of deals.

Finally, it gives an opportunity to work on cutting-edge technology in the financial world. 4. Emphasis on training On an average, a person goes through about 62 man-hours of training at ICICI every year, including specialised functional training either in India or abroad. Says Kamath, who spends a minimum of 10 days every year learning or teaching (especially new applications of technology): ''I make this as an example to others. Not knowing something is not something to hide, but something that I could correct. Training needs are high here because we are a company that rides on technology.'' 5. Performance appraisal and career progression system Career progression is propelled by the employee's own initiatives. Employees are encouraged to involve themselves in the company's overall performance through profitsharing incentive schemes based on financial results. Indeed, ICICI's performance appraisal and career progression systems have been fine-tuned in the last three years. For instance, there is this system for spotting high performers. It's quite straight-forward actually: a simple performance appraisal form is filled in by each employee and an immediate supervisor. A moderating committee-made up of members of cross-functional teams-sits in and takes a decision on performance bonuses. The score-sheet is then returned to the immediate boss who then sits across with the appraised and shares the appraisal. Says A.T. Khusre, ICICI's General Manager (HR): ''It's a completely transparent process and that is when the feedback takes place.'' Then, the immediate supervisor discusses career options with the respondent.

COMPENSATION There is nothing like a jumbo compensation package in ICICI. On an average, ICICI employees get paid 60 per cent of rival financial services firms' salaries. Annual increments are not 'sexy', but hefty bonuses make up somewhat.Besides competitive compensation, recognition is an integral part of the culture at ICICI. Some of the recognition rewards include a paid holiday, gifts for the employee and his family members, features on the employee on the intranet, parties, and cash rewards. Recognition extends to the employee's family as well: employee-kids, who excel in academics or extra-curricular activities, are recognised through scholarships and sponsorships. Page | 36

Employee Satisfaction By and large, it's not the money that drives people to join ICICI. It's a chance to earn your spurs in the HLL of the financial services sector. That's what has made it a first-day choice for the recruitment process, be it in the IIT-IIM combination, or among lawyers, Chartered Accountants and so on. In the last two years, ICICI has been a Day One company at all the major campuses, the IIMs, the IITs, XLRI and the National Law School of India University. Talking about the attrition rate, its only 8 to 8.5 % per annum as compared to industries’ average which is 17%. Head-hunters rank the institution as one with the most talented corps of managers. About attrition rate Says Kamath: ''The current attrition rate is healthy. It allows people who want to make a move to do so. It is desirable that certain high fliers make a move; and this becomes an incentive for people to join. That is the sole reason why we are able to get the best crop at the campuses on the first day.'' Reasons for low attrition rate 1.

the empowerment and opportunities that it offers its employees

2.

the flexible organisation structure,

3. embodying progress in change 4.

fine people-management skills that Kamath has kept at the centre-stage of his vision for ICICI

5. Work culture. 6. The employee-centric focus 7. Allowing people to leave when they want to,thereby letting new people join. As per. S.H. Bhojani, Deputy Managing Director, ICICI ''Salary is a hygiene factor, which a person requires, but it will never motivate you. The exit barriers we are building at ICICI are job content, empowerment-what a person feels he can bring to the table.'' Working process and Work content Empowerment is swift, and complete. After two weeks of an orientation programme, the employee is given an assignment and may even have to take decisions in the very first week itself. Says Madhur Agarwal, fresh in from the Class of 2000, IIM-Calcutta, who joined ICICI in April, 2000: ''The biggest attraction of ICICI is work content.'' Eight months ago, he started with corporate finance portfolio, project loans and corporate loans. Then, he's been part of the strategy and timeline team for ICICI Infotech's public issue. And now, Agarwal is part of the fourmember core team for insurance, which works directly with insurance CEO Sanjiv Kerkar. Page | 37

Agarwal gushes: ''The learning and the variety of work would not have been possible anywhere else.'' Goal setting route Management By Results, or MBR. At the beginning of the year, the organisation decides its goals. The top management sets stiff goals (which, mind you, can be changed in the middle of the year, given the changing environment). These are disseminated as functional goals and are assigned to the head of each department. Says Mody: ''It is a trickle-down approach. Top management sets the goals first, and the goals down the line follow.'' Based on the goals, it is HR which steps in and tells the department how many people are needed to achieve the goals, the skill-sets, possible compensation packages, and so on. When the goals are set and weightages assigned, these are the clear performance indicators. Halfway through the year, there is a review to ensure that each person is on track. And the whole thing is online. Employee life’s Quality ICICI believes that the quality of work life enhances employee productivity. The company takes care of all the 'life' needs of the employee, right from ensuring that the children of employees are admitted in premier schools, to providing holiday homes for leisure, thereby enabling managers to focus better on their work. The work facility is state of the art; 'swank' is what some employees called it. All conceivable conveniences including a 'subsidized' cafeteria, concierge services, personal travel services, swimming pool, sleeping rooms, gymnasium, steam and sauna rooms, and, of course, an ATM are offered onsite. The office is open 24 hours, employees have flexible hours, and can even work from home; 8 per cent of the employees currently use this benefit. One innovation is a camera-linked crèche, which allows parents to keep an eye on their child through their computers. The company also boasts a Saturday kids club: employees bring their kids to work on a Saturday, and company-appointed 'instructors' put them through a day of activities related to fun and learning. Once a month ICICI organizes a learning-trip for its employees' children. An onsite dietician advises employees on their diet and monitors cafeteria food to ensure healthy eating habits. A medical facility houses all emergency equipment and has an onsite doctor. Other health benefits provided include dental coverage, retiree healthcare insurance, life insurance, mandatory annual health check ups, hospital tie-ups and stress reduction programmes.

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OBJECTIVE OF THIS REPORT To analyze the working environment of ICICI bank on the following three parameters:

• Organization culture and sub-cultures - How culture affects the employees behavior and how do they affect the organization.

• Employee engagement -How much job satisfaction are the employees having and how much commitment they show to the organization.

• Organizational effectiveness -To judge the efficiency of the organization and its effect on the employees.

METHODOLOGY FOLLOWED FOR THE ANALYSIS: Here the research is done directly by interacting with the people or by doing some survey. This includes raw data and facts and figures collected while the interaction. Our report is on the survey done on the employees of ICICI by getting the questionnaires filled by the front line staff and the managerial level people. We conducted the survey on ten employees; covering three banks; following is the data collected and the analysis done on the data. Following mathematical tools were used to analyze the data: •

Mean Page | 39

•

Variance

Mean : In mathematics and statistics, the arithmetic mean (or simply the mean) of a list of numbers is the sum of all the members of the list divided by the number of items in the list. If the list is a statistical population, then the mean of that population is called a population mean. If the list is a statistical sample, we call the resulting statistic a sample mean.

Variance: The variance of a random variable is a measure of its statistical dispersion, indicating how far from the expected value its values typically are. The variance of a random variable is the square of its standard deviation.

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Se t 1 S.No. Name of the Employe A 1 Manav Nagar 4 2 Paritosh Garg 4 3 Rohit Kaushik 3 4 Ishan Miglani 4 5 Sharda Sheikh 1 6 Varun Kanungo 3 7 Deepika Malik 4 8 Yachna Arora 1 9 Shir sh Agarwal 4 10 Anu Gupta 3

B 4 3 4 4 1 3 3 1 3 2

C 4 2 3 4 3 1 4 2 2 1

Organisational Culture Se t 2 DABCD 14313 13214 23242 14424 31314 31313 24313 32314 13142 41324

Se t 3 A 1 1 1 2 3 1 2 3 1 1

B 2 4 3 4 1 1 2 1 3 2

Se t 4 C 3 3 2 4 3 3 3 1 4 3

D 3 2 2 4 2 1 3 3 2 4

A 3 4 2 4 1 1 3 1 4 1

B 2 2 3 4 3 3 2 3 1 4

C 2 1 2 4 1 1 1 1 3 2

D 1 3 1 1 4 3 1 3 2 3

O RGA NIZA TION AL CUL TUR E

Mean 3.1 2.8 2.6 2.1 2.6 2.7 1.8 3.3 1.6 2.3 2.9 2.6 2.4 2.7 1.8 2.2 Standard Deviation 1.1972 1.1353 1.1738 1.10 5 1.2649 0.823 1.2 93 0.823 0.843 1.1595 0.8756 0.96 1 1.349 0.9487 1.0328 1.1353 Variance 1.43 3 1.28 9 1.37 8 1.21 1 1.6 0.67 8 1.51 1 0.67 8 0.71 1 1.34 4 0.76 7 0.93 3 1.82 2 0.9 1.06 7 1.28 9 Page | 41

Set 5 B 3 4 4 4 3 3 3 3 4 3

C 2 2 2 4 1 3 2 3 3 2

D 1 3 1 4 1 1 1 1 2 1

A 1 1 1 2 1 1 1 1 2 1

B 1 3 1 4 1 1 1 1 3 4

O RGA NIZA TION AL CUL TUR E

S.No. Name of the Employe A 1 ManavNagar 2 2 Paritosh Garg 1 3 RohitKaushik 1 4 IshanMiglani 4 5 Sharda Sheikh 3 6 VarunKanungo 1 7 De pika Malik 3 8 Yachna Arora 1 9 Shir shAgarwal 1 10 Anu Gupta 4

Set 6

Set 7 C 1 2 3 4 1 1 2 1 1 2

D 1 4 2 4 1 1 1 1 4 3

A 2 2 2 3 1 1 2 1 2 2

B 1 3 2 4 3 3 1 3 1 4

Set 8 C 3 4 3 4 3 3 3 3 4 1

D 2 1 1 4 1 3 2 1 3 3

A 1 1 1 4 3 1 1 3 3 1

B 1 3 1 1 1 2 1 3 1 3

C 1 2 1 4 3 3 1 3 2 2

D 1 4 1 4 3 1 1 1 4 4

Mean 2.1 3.4 2.4 1.6 1.2 2 1.8 2. 1.8 2.5 3.1 2.1 1.9 1.7 2. 2.4 Standard Deviation 1.2867 0.5164 0.843 1.075 0.4216 1.3 3 1.0328 1.3984 0.6325 1. 785 0.8756 1. 0 5 1. 972 0.9487 1.0328 1.505 Variance 1.65 6 0.26 7 0.71 1 1. 5 6 0.17 8 1.7 78 1.06 7 1.95 6 0.4 1.38 9 0.76 7 1.21 1 1.43 3 0.9 1.06 7 2. 6 7 Page | 42

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O RGA NIZA TION AL CUL TUR E

ANALYSIS ORGANIZATIONAL CULTURE

SET 1 •

Inference 1 o According to the calculated mean (2.1) majority of the employees in the organization are of the opinion that organizational values are widely shared in the organization.

•

Inference 2 o According to the calculated mean (3.1) most employees feel that, consideration is given to values in the organization.

•

no

Inference 3 o Since the variance (1.43) is high so this implies that there is considerable difference in the opinion of selected sample.

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SET 2 •

Inference 1 o According to the calculated mean (1.8) majority of the employees in the organization observe that small working tables are used by managers.

•

Inference 2 o According to the calculated mean (3.3) majority of the employees in the organization observe that large working tables are not used here.

A B C D

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SET 3

•

Inference

o

•

According to the calculated mean employees in the organization think that most of the things depend upon the top management but some employees also feel that “things don’t happen; you make them happen”.

Inference 2 o Since the variance (0.711) is high so this implies that there is that most of the people have the same view.

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SET 4 •

Inference 1 o According to the calculated mean majority of the employees are of the opinion that people are expected to follow the proper channels that have been laid down.

•

Inference 2 o Most of the people do not believe that leaders are there role models.

•

Inference 3 o As the variance is 1.06, we infer that there is wide variation in response to option c.

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SET 5 •

Inference 1 o According to the calculated mean majority of the employees in the organization have experienced that seats for those at top are fixed. Generally, meetings are not held without top managers.

•

Inference 2 o According to the calculated mean most employees feel that they are not indifferent to meetings and do not try to avoid them.

•

Inference 3 o Since the variance is “1.155” so we can imply that there is considerable difference in the opinion of selected sample, and data cannot be relied.

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SET 6 •

Inference 1 o According to the calculated mean majority of the employees in the organization agree that customers are regarded as the most important person.

•

Inference 2 o According to the calculated mean most employees feel that Chief Executive is not regarded as the most important person.

•

Inference 3 o Since the variance (0.1778) is low so this implies that there is little deviation in the opinion of selected sample, so this inference can be trusted.

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SET 7 •

Inference 1 o According to the calculated mean we can infer that most communication is generated at the top level.

•

Inference 2 o According to the calculated mean we can infer that there is much of work related communication among people.

•

Inference 3 o Since the variance of Option A is .4 only, so we can trust the data, as most of the sample agree with this.

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SET 8 •

Inference 1 o According to the calculated mean we have inferred that top management have parties to celebrate good performance of the organization.

•

Inference 2

According to the mean most employees feel that people are not busy streamlining rules and regulations.

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Employe Enga emnt S.No. NameoftheEmploye Ques.1 Ques.2 Ques.3 Ques.4 Ques.5 Ques.6 Ques.7 Ques.8 Ques.9 Ques.10 Ques.1 Ques.12 Means(Indivdual) 1 Man vNagr 1 2 1 2 3 3 2 2 2 2 2 1 1.92 2 ParitoshGarg 2 1 3 4 2 3 2 2 3 4 3 2 2.58 3 RohitKaushik 1 1 2 1 3 4 2 3 2 2 1 2 2 4 IshanMiglani 1 2 3 1 2 1 4 _ 1 3 1 1 1.82 5 Shar daSheikh 1 2 2 2 3 2 3 3 2 3 3 3 2.42 6 VarunKanu go 1 2 2 3 5 1 3 5 3 5 5 5 3. 3 7 De pikaMalik 1 2 2 3 2 3 2 2 2 3 2 1 2.08 8 YachnaAroa 1 2 5 5 5 5 5 3 3 5 4 5 4 9 ShirshAgarwal 1 2 2 1 2 3 2 3 3 5 2 2 2.3 10 AnuGupta 2 2 3 2 2 2 3 2 3 3 1 1 2.17 O RGA NIZA TION AL ENG AGE MEN T

Mean 1.2 1.8 2.5 2.4 2.9 2.7 2.8 2.7 7 7 8 2.4 3.5 2.4 2.3 StandardDeviaton 0.421637021 0.421637021 1.08 12345 1.3498 71 5 1. 97219 1.2516 5 7 1.032795 9 0.971825316 0.69 20589 1. 7851 302 1.3498 71 5 1.567021 36 Vari nce 0.17 7 78 0.17 7 78 1. 6 6 67 1.82 2 2 1.43 3 3 1.56 6 67 1.06 6 67 0.94 4 4 0.48 8 89 1.38 8 89 1.82 2 2 2.45 5 56 Page | 53

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ORGANI ZATION AL ENGAGE MENTINDIVID UAL MEAN

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O RGA NIZA TION AL ENG AGE MEN T

EMPLOYEE ENGAGEMENT - ANALYSIS Question vise Analysis

1.Do you know what is expected of you at work? As the calculated mean of this question is 1.2, we infer that every employee in the organization knows what he/she has to do in the organization which in turn encourages their morale.

2.Do you have the materials and equipment you need to do your work right? Going by the calculated mean of this question which is 1.8, we infer that employees are equipped with the right tools and equipments and hence will perform in the optimum level.

3. At work, do you have the opportunity to do what you do best every day? Our calculated mean for this question (2.5), implies that they are not given immense opportunity to do what they do best, everyday.

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4. In the last seven days, have you received recognition or praise for doing good work? Going by the calculated mean which is 2.8, we infer that not many people receive praise or recognition regularly.

5. Does your supervisor, or someone at work, seems to care about you as a person? As the calculated mean of this question is 2.9, this is evident that supervisors do not care for their subordinates much in this organization.

6. Is there someone at work who encourages your development? Our calculated mean for this question (2.9), indicates that employees do not get encouragement from their counterparts or supervisors often.

7. At work, do your opinions seem to count? As the mean is close to 3, we infer that most employee’s opinions does not count in this organization.

8. Does the mission/purpose of your company make you feel your job is important? The calculated mean of this question viz. 2.7 indicates that the employees do not feel that their job is important as per their company’s mission and purpose.

9. Are your associates (fellow employees) committed to doing quality work? The calculated mean viz. 2.4 indicates that employees feel that their counterparts are committed towards quality work.

10. Do you have a best friend at work? Going by the mean 3.5, we feel that most of the employees do not have good friends at work.

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11. In the last six months, has someone at work talked to you about your progress? The calculated mean viz. 2.4, indicates that the employer’s are somewhat concerned about the employees progress.

12. In the last year, have you had opportunities at work to learn and grow? The mean 2.3 indicate that the employees are provide with ample opportunity to learn and grow at work.

Conclusion We conclude that 30% of the employees of the organization are actively engaged, 40% are engaged and rest 30% are not engaged. Note : Assuming all 12 factors are given equal weightage.

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OrganisationalEf ectivenes S.No. NameoftheEmploye Ques.1 Ques.2 Ques.3 Ques.4 Ques.5 Ques.6 Ques.7 Ques.8 Ques.9 Ques.10 Ques.1 Ques.12 Ques.13 Ques.14 1 ManavNagar 4 4 5 4 4 5 4 4 4 4 4 3 4 4 2 ParitoshGarg 2 3 4 4 3 4 4 4 4 4 3 3 4 2 3 RohitKaushik 5 4 4 4 5 4 5 2 3 4 3 3 4 4 4 IshanMiglani 5 4 3 5 2 4 5 5 5 5 4 4 4 5 5 ShardaSheikh 3 3 4 3 2 3 4 4 3 3 3 2 4 2 6 VarunKanungo 2 3 4 2 2 5 3 4 2 1 4 5 3 1 7 De pikaMalik 4 4 5 5 4 5 4 4 4 4 4 3 4 4 8 YachnaAro a 3 2 1 3 4 2 2 1 2 2 2 2 3 1 9 Shir shAgarwal 4 3 4 4 3 4 3 4 4 3 3 3 3 3 10 AnuGupta 3 3 4 3 4 4 3 4 4 4 4 4 3 3 O RGA NIZA TION AL EFFE CTIV ENES S

Mean 3.5 3. 3.8 3.7 3. 4 3.7 3.6 3.5 3.4 3.4 3.2 3.6 2.9 Standard Deviaton 1.08012345 0.6749485 8 1. 35292424 0.948683298 1.059349 05 0.942809042 0.948683298 1. 73787 91 0.971825316 1. 73787 91 0.69 20589 0.918936583 0.516397 79 1.370320319 Variance 1. 6 6 6 67 0.45 5 5 56 1.28 8 8 89 0.9 1. 2 2 2 2 0.8 8 8 8 9 0.9 1.37 7 7 78 0.94 4 4 4 1.37 7 7 78 0.48 8 8 89 0.84 4 4 4 0.26 6 6 67 1.87 7 7 78 Page | 59

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O RGA NIZA TION AL EFFE CTIV ENES S

ORGANIZATIONAL EFFECTIVENESS - ANALYSIS

Set 1 - Work Group Planning and coordination Question 1, 2, 3, 4 & 5

As the mean of these three questions is 3, this implies that surveyed sample is indifferent towards the work group planning and coordination. This means they think that they do not necessarily plan together and solve the problems together. Work group does not always feel responsible for meeting its objectives successfully and efficiently.

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Set 2 : Confidence and trust amongst group members Questions 6 & 7

As the mean of these two questions comes out to be 4, we infer that group members do not trust each other and are not satisfied with each other’s performances.

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Set 3 : Organization and employee Question 8, 9, 10 & 11

We find that the mean of these 4 questions is more than 3 which implies that people are satisfied with their boss, job, progress and organization and as the variance is near about 1, we can trust the surveyed sample and can give this inference.

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Set 4 : Job Satisfaction Questions 12, 13 & 14

As the mean of these three questions is more than 3 this implies that workers in this organization are satisfied with their organization and are happy with the progress path they are following. As the variance is less than 1, there is no difference in the opinion of selected sample.

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Set 5 : Team Dynamics Questions 15, 6, 17, 18, 19, 20, 21, 22, 24, 25 & 27 As the calculated mean of these questions is more than 3, it implies that : •

Goals of the team are well defined, with their group tasks divided amongst the team.

•

Organization fulfills the needs of the employees

•

Teams can decide their way of working

•

Members avoid discussions about the problems in the team.

Set 6: Managerial Appreciation Question 23 As the mean of this question is 2.5, we infer that group is not given much appreciation by the management of the organization. Thus the team does not get any encouragement from their management.

Set 7: Administrative Rights Question 26

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As the mean of this question is near about 4, we infer that teams are given adequate authority to take their decisions regarding the work.

SUGGESTIONS: Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee. According to the Gallup the Consulting organization there are there are different types of people:Engaged: "Engaged" employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They perform at consistently high levels. They want to use their talents and strengths at work every day. We have found that out of the sample size of 10 employees only 3 fall under this category. So we suggest that the organization should encourage these employees morale and recognize their talent and strengths so that they continue with the same performance.

Not Engaged: Not-engaged employees tend to concentrate on tasks rather than the goal and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. By our study we analyze that 4 employees are not engaged which clearly states that they do not have the sense of ownership and responsibility towards the organization. Therefore there should be proper training and counseling to boost their morale and increase their productivity so that they can move from non engaged segment to the engaged segment.

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Actively Disengaged: The "actively disengaged" employees are the "cave dwellers." In our study we have found that 3 employees fall in this category. These employees should be given regular counseling sessions so that they can relate themselves with the organization and attain harmony with other employees. The organization should remove barriers in the environment that will bring a change in their perception. Though they have a proper goal setting procedure but still people are not clear of what their goals are, so employees should be clearly communicated about their goals. There should be proper orientation programmes for the employees. Employees are not comfortable to work in the team because of improper communication, so company should encourage the concept of informal communication. There is a lack of trust and organization should adopt strategies to improve on this. The opinions and suggestions of employees should be valued so that they can take more initiatives and can express their views freely. Though the company has good monetary compensation plans, but it lacks non monetary appreciation. There should be a concept of acknowledgment and recognition in the company, which will enhance their performance.

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REFERENCES Organizational behavior W.Jack Duncan Book Review chapter 1 by Meera Iyer. www.hrfolks.com/articles/orgn%20mgnt/organizational%20behavior.pdf

Organizational culture Book- Organizational culture and leadership (2nd edition, 1992, Jossey- Bass) pg no. 22 Organizational culture and leadership pg no. 373-374 www.soi.org/reading/change/culture.shtml Communication and human behavior, 4th edition, Boston, Allyn and Bacon Images of organization, Thousand Oaks CA: Sage publications www.tnellen.com/ed/tc/schein.html http://webhost5.nts.jhu.edu/jhuonpoint/content/organizational-culture.pdf www.au.af.mil/aw/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html

Employee engagement Archie Thomas, CMA, and Ann MacDi anmid – Encouraging Employee Engagement – CMA Management, Jun/Jul 2004.

Ashok Mukherjee – Engagement for the mind body, and soul – Human Capital, Aug. 2005. Page | 68

Barbara Palframan Smith – Employee connection – Technology to built culture and community – Communication World – Mar / Apr 2004.

Beverly Kaye and Sharon Jordan Evans – From Assets to Investors – Training and Development – Apr 2003.

Charles Woodruffe – Employee Engagement – The Real Secret of Winning a Crucial Edge over your rivals – Manager Motivation – Dec. / Jan. 2006.

Christoffer Ellehuus,Piers Hudson-Driving Performance and Retention Through Employee Engagement –Corporate leadership Council 2004,Employee Enagegement Survey

Charlotte Garvey – Connecting the organizational pulse into the bottom line – HR Magazine society for Human Resource Management, June 2004.

Cifton, D.O. & Hartor, J.K. (2003) – Investing in strength – positive organizational scholarship. Foundation of a new discipline (pp 111-121)

Douglas R. May, Richard L Gilson – The Psychological conditions of meaningfulness safety and availability and the engagement of the human spirit at work – Journal of Occupational and Organisational Psychology (2004) 7, 11-37.

Ellen Lanser May – Are people your priority? How to engage your work force – Page | 69

Healthcare Executive, July/Aug. 2004.

Fox, S, & Spector, P.E.. – Emotions in the work place – the neglected side of organizational life introduction. Human Resource Management Review, 12, 167 – 171.

Gretcher Hoover – Maintaining employee engagement when communicating difficult issues – Communication World, Nov / Dec 2005.

Heskett, Jame L – Putting the service profit chain to work – Harvard Business Review, Mar / Apr 94 Vol. 72 Issue 2.

Jerry Krueger and Emily Killham-At work,feeling good matters-Gallup Management Jpurnal,Dec2005

Jteresko – Driving employee engagement –www.industryweek.com, Sept. 2004.

Michael Treacy – Employee Engagement higher at DDG company – Hewitt Research Brief. 2005

Remus, Ilies – An experienced sampling measure of job satisfaction and its relationships with affectivity, mood at work, job beliefs and general job satisfaction – European Journal of work and organizational psychology, 2004, 13 (3), 367 – 389.

Shamir, B. – Meaning – self and motivation in organization. Organisation studies, 12 (3) Page | 70

405 – 424.

Steve Batts – Getting engaged – HR Magazine society for Human Resource Management, Feb. 2004.

Steve Crabtree – (2004) Getting personnel in the work place – Are negative relationships squelching productivity in your company? – Gallup Management Journal, June 10, 2004.

Scarlett International Survey-employee engagement-www.scarlettsurveys.com

Organizational effectiveness

(http://www.metrus.com/issues/org-effect.html) (http://en.wikipedia.org/wiki/Organizational_effectiveness). (http://www.metrus.com/issues/org-effect.html) (http://209.85.175.104/search?q=cache:Fim2dVBO3EJ:www.iun.edu/~bnwcls/w430/orgeff.ppt+organizational+effectiveness+definitions+by+taylor& hl=en&ct=clnk&cd=2&gl=in) (http://edbatista.typepad.com/edbatista/files/2008/05/Effectiveness.ppt) (http://www.turknett.com/sectionN/oepweb.pdf)

Company Profile: www.icicibank.com

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