3. ABOUT THE ORGANIZATION: Kotak Mahindra Bank
Kotak Mahindra Bank is an Indian financial service firm established in 1985.It’s the first
company in the Indian banking history to convert to a bank. February 2003 was the date when
Kotak Mahindra Finance Ltd, which is the group's flagship organization was given the license to
carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the
first company in the Indian banking history to convert to a bank and it has more than 20,000
employees and Rs. 10,000 crore in revenue.
KMB is India’s leading full services financial conglomerate, dominating the securities and
investment banking space. It is currently focused on growing its banking, asset management,
and insurance businesses. The group has a widespread presence across 375plus cities. KMB has
400+ branches. The group has a decent platform to cross-sell its products, given its presence in
the financial spectrum. Kotak Securities has ~2.5% market share in overall market volumes and
is one of the prominent domestic investment bankers. Amongst commercial banks, KMB is still
at a nascent stage with ~0.75% share in advances and ~0.5 % share in deposits. It is developing
its presence in the asset management and insurance businesses, where it has 3-5% market
share.
Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal
finance solutions of every kind from savings accounts to credit cards, distribution of mutual
funds to life insurance products. They offer transaction banking, lending verticals and manage
IPOs and provide working capital loans. Kotak has one of the largest and most respected
Wealth Management teams in India, providing the widest range of solutions to high net worth
individuals, entrepreneurs, business families and employed professionals. The operating
performance in financing business has been strong with a robust advance growth and
consistently low credit costs. The company is expected to grow to moderate to 15-17% over
FY13-15E. While it has limited exposure to some of the stressed segments its credit costs are
closer to bottoming out.
4. Kotak believes that their customers should enjoy the benefits of dealing with a global Indian
brand which can aptly understand their needs and it can delivers customized pragmatic
solutions across multiple platforms. The manager at Kotak says that Kotak is a world class
Indian financial services group. Their technology and best practices are bench-marked along
international lines and their understanding of customers is still uniquely Indian. The company is
more than a repository of their customers' savings rather they want to be a single window to
every financial service in a customer's universe.
IT infrastructure at Kotak:
Kotak Mahindra Bank has consolidated the datacenters and converged the data and voice
network across their group companies who can follow their own operational as well as
compliance and regulatory processes and thus can manage a consolidated infrastructure which
saves cost. The company mainly wanted to cope up with the dizzying speeds at which it was
growing. The bank was unable to curb mushrooming datacenters and that too entwined in a
network infrastructure. With 10 datacenters and 5,000 users who are scattered all
over Mumbai, Sanjay Belsare their head-IT infrastructure along with his team had set it all right.
Despite the data migration to a single location, there was basically no need for businesses to
change their IP address and application URLs. Group companies can eventually follow their
operational, compliance and regulatory processes and a consolidated infrastructure which
saving cost. Company is constantly updated with latest technology in their processes. Kotak
Fast Track” allows for an equitable system of applying and getting hold of multiple roles across
the group's businesses and ensures a smooth lateral movement across the Kotak umbrella.
5. Role of top management:
Mr. Uday S. Kotak
Executive Vice Chairman and Managing Director
Mr. Uday Kotak, who is the Executive Vice-Chairman and Managing Director of the Bank, and its
principal founder and promoter, is the main driving leader behind Kotak. He is an alumnus of
Jamnalal Bajaj Institute of Management Studies and was featured in the Top Financial Leaders
of the 21st Century by Euromoney by virtue of his managerial skills and he was named as CNBC
TV18 India Business Leader of the Year 2008 and as the most valued CEO by businessworld in
2010.
Mr. C Jayaram
Joint Managing Director
Mr. C. Jayaram, is a Joint Managing Director of the Kotak and is currently in charge of Wealth
Management Business of Kotak Group. He has been with the Kotak Group since 1990 and on on
the members of the Kotak board since October 1999. He also oversees international
subsidiaries and alternate asset management business in the group. He is the Director of the
Financial Planning Standards Board, India. He has experience of over 25 years in many areas of
finance and business and has built numerous businesses for the Group and was CEO of Kotak
Securities Ltd.
Mr. Dipak Gupta
Joint Managing Director
He is an electronics engineer and alumnus of IIM Ahmedabad and has been with the Kotak
Group since 1992 and joined their board in October 1999. He heads commercial banking and
retail asset businesses and also looks after group HR function. He also headed the finance
function and was actively instrumental in the joint venture between Kotak Mahindra and Ford
Credit International. He was the first CEO of that resulting entity called Kotak Mahindra Primus
Ltd.
6. HR practices that makes Kotak Mahindra different from other banks
There constant focus on continuously building a consistent culture across
levels/geographies
A conducive environment for developing and nurturing internal leaders
Building rigor across all organizational practices
Never losing the ability to adapt and change course with agility
Being non-hierarchical, open and transparent culture
Delivering organization practices that are totally aligned to EVP and overall vision of the
organization
Apolitical. Where in company believe corporate politicians are an insecure lot.
Respecting of people’s capability rather than their credentials or looks. No one here is
hired for their looks! Any example otherwise is purely coincidental.
Determined to be on the right side of the law always, whether economic, social or
moral. History will bear us out.
Humming in self-belief. Their work is an opportunity to create miracles.
Other practices:
Diversity of workforce has always been a priority. In order to encourage a
diverse workforce, factors like education, work experience background,
geographies and gender have been given due importance, starting from our
hiring process itself. Over the last three years, women being hired constitute
close to 20% of our total hiring compared to 15% a few years back. We have tied
up with recruitment agencies that specialize in sourcing women candidates for
various positions across the bank.
They have maintained a focus on hiring from non-banking background; close to
40% of our hiring is from non-banking background.
In the last financial year, 10% of the total hires were fresh graduate.
7. A part-time working policy was launched last year. This policy has two benefits.
It provides women who may be unable to work full time with an opportunity to
apply for a part time job and pursue their careers with ease. Many women may
be forced to quit the organization due to conflicting demands of career and
family. This policy gives them the option of choosing to work part time rather
than quit.
At Kotak, there is strategy to address the attrition has been inputs-driven. They
focus on quality of hire, robust on-boarding and handholding process and timely
engagement interventions have resulted in significant improvement in retention.
The challenge was to create a process and rigour around the above areas so that
it becomes a way of life.
OBJECTIVES:
To study the existing payroll system in Kotak Mahindra Bank.
To analyse the robustness of the payroll system in Kotak Mahindra Bank.
To design an ERD and DFD.
LIMITATIONS OF THE EXISTING SYSTEM:
1. At present, payroll is computerized in Kotak, but some of the functions are carried out manually.
Lack of coordination limits complete utilization of the computerized system.
2. Manual work involves a lot of paper work which increases carbon footprint.
3. Human errors while making entries are bound to happen.
4. A lot of backlogs are present which take a long time to clear.
5. The amount of data is very large to be handled manually.
6. Payroll requires many details like attendance, medical leaves, official visits etc. Manually
searching for these data is cumbersome and time consuming.
7. Out sourcing have issues like security and financing costs.
8. Proposed system:
Scope:
To Develop an in-depth knowledge HRIS on payroll management
Managing the implementation of the HRIS solution
Performing Business Analysis studies and develop solutions to support business processes
Creating quality documentation in relation to issues and proposed solutions
Providing training and support to customers on software functionality
Benefit:
Flexible Eligibility Rules
Define comprehensive eligibility rules that link user-defined criteria.
Define standard rules for automatically assigning and changing employee compensation and
benefits.
Minimize workforce inquiries by providing near real time remuneration data and history.
Simplify Management of Processing Rules
Utilize simple, configurable formulas
Control your unique processing rules and calculations using Fast Formula
Use conditional logic for more complex cases
Streamline administrative processes
Reduce set-up costs and processing time & errors
9. Manage Global Payroll Activities
Manage global compensation with one application
Organization-wide control of workforce payroll and compensation data
Configure and manage personalized compensation policies and programs with one global
payroll engine
Processing Efficiencies
Monitor payroll processes end-to-end
Reconcile errors while maintaining current calculations
Simultaneous processing of multiple groups of employees
Reduce administrative costs with online paperless pay slips.
Monitor Performance and Security
Standard and personalized reports are utilized to view and analyze your payroll data
Configurable security for unique access
Maintain audit logs of changes.
10. Entity-Relationship Diagrams
An entity-relationship diagram can be defines as a data modeling technique which help create
a graphical representation of the entities, and the relationships between entities, within the
information system.
There are three main components of an ERD are:
1) The entity is a person, object, place or event for which data is collected. The entity is
represented by a rectangle and labeled with a singular noun.
2) The relationship can be defined as the interaction between the entities. A relationship is
represented by a diamond shape or simply by the line connecting the entities. In any
case, verbs are used to label the relationships.
3) The cardinality is the relationship between the entities in terms of numbers. An entity
may be optional or mandatory. The three main cardinal relationships are: one-to-one,
expressed as 1:1; one-to-many, expressed as 1: M; and many-to-many, expressed as M:
N.
The Payroll of any organization consists of a list of employees in the organization and the
amount of compensation that is due to each of them.
A simple formula of payroll will be Rate of the pay into time. So going ahead with this basic
formula we’ll need data from the Payroll Administer (about the employees Payment) and the
attendance of the employees from the time administer and then calculation will be done for
the payroll.
11. -
Employee Attendance Bank
An employee will have one and only 1 attendance but the attendance can have the data of
one or more employees. There is one a/s of every employee. But then there are many
employees and there are many bank a/cs.
12. Proposed DFD for Kotak Mahindra Bank
Employee Master list Summary of
Payroll Report
Management
13. Limitations of HRIS in payroll systems:
1. Confidentiality is risked to a certain extent as the whole system is integrated and any
breach in it would jeopardize sensitive information of the organization.
2. The system itself cannot address and solve issues within an organization.
3. Human error during information input causes the error to carry forward and gets
magnified in the end. Eg: If the number of sick leaves entered is wrong then the whole
calculation is altered.
4. The HRIS is not able to track the employee time effectively.
5. The payroll details can be accessed only through intranet and not through internet.
6. Financial allocation for HRIS keeps increases with much needed up gradation processes.
7. Hiring specialists in this niche area is difficult as their demand is high and very few
persons are specialized in this area.
8. Also training and development of HR personnel is a problem initially.
9. Payroll based on HRIS is dependent on electricity. With Kotak branches spread across
the country, full time electricity is not available.
10. Also attrition mainly in this area is a blow to the normal functioning of the system.
