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

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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

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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

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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

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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

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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.

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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.

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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

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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?

59

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

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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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