Organizational Behavior


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Organizational Behavior

  1. 1. Date: 16th November 2009 ORGANISATION BEHAVIOUR - II GROUP ASSIGNMENT TEAM NAME EKLAVYA PROJECT ON SUBMITTED BY 1) Mayur Mewada : 092129 2) Rakesh Dutta : 092139 3) Pramod Paswan : 092137 4) Samir Thakker : 092142 5) Dinesh Lutya : 092115
  2. 2. 1) Mahindra Finance, a subsidiary of Mahindra & Mahindra Ltd. A leading Non-Banking Financial Company catering to the financing needs of vast populace residing the rural and semi-urban areas of India. Mahindra tractor has 80% of total tractor market in India, and is the only Indian company supplying tractor across the world. It has been incorporated in 1991, with single office at Mumbai and later second branch at Jaipur in 1993. Also, it is India’s first NBFC. Now it has 436 offices across India including Head office, Zonal offices, Area offices and Branch offices, having 4959 regular employees and many more on contract basis. The main products of Mahindra Finance are financing, tractor, cars, utility vehicle, commercial vehicle and so on. Now we have also entered into Insurance, Housing Finance, Mutual Fund, Personal Loan and Fixed Deposit. Now we have more than 1 million customers with total asset of Rs. 8,500 Crore. Earlier Anand Mahindra was the chairman of Mahindra Finance later on Bharat Doshi became the chairman and Uday Y. Phadke as Vice-Chairman. Ramesh Iyer is Managing Director and V Ravi is CFO. In the financial year 2008-09 its total income is Rs. 138466.19 lacs, having PBT Rs. 32563.03 lacs and PAT Rs. 21452.06 lacs. Mahindra Finance has two subsidiaries, Mahindra Rural Housing Finance Ltd and Mahindra Insurance Broker Ltd. The main purpose of Mahindra Rural Housing Finance Ltd. is to provide housing loan to its primary customer .i.e. rural customer. Mahindra Insurance Broker Ltd. Is concern with vehicle insurance, insurance on housing loan as well as personal insurance. [Type the company name] SNL is the single best source for financial information on business sectors critical to the global economy. SNL Financial collects, standardizes and disseminates all relevant corporate, financial, market and M&A data — plus news and analysis — for the industries cover: banking, financial services, insurance, real estate, energy and media/communications. 2
  3. 3. Since foundation in 1987, it continuously expanded it global operations, as well as the scope and depth of coverage and products — all without compromising the standards of quality and customer service that drive our success with our Four Core Tenets which are: Accuracy (paramount of data quality), Relevance (unique characteristics of each sector), Completeness (one-stop source for information) Timeliness (most current information possible). SNL Financial was originally founded as "S&L Securities" in New Jersey in 1987 with an initial focus on the savings and loan industry. But state law would not permit the incorporation of a non-bank with "S&L" in the official company name. So we replaced the "&" with an "N" to create "SNL." And our universe soon expanded well beyond savings & loans to the various business sectors we cover today. As a result, leading investment banks, investment managers, corporate executives, ratings agencies, government agencies, consulting firms, law firms and media such as The New York Times, The Wall Street Journal, USA Today, Washington Post, Business Week, Forbes and Fortune rely on SNL Financial for the best possible information on the companies in our sectors. It was founded in Hoboken, New Jersey by Reid Nagle and then it other six core board member joint him. He is still serving as Chairman and Founder with the Mike Chinn as President, Will Pappas Managing Director of Sales and Nate Haskins Managing Director of Content. It one subsidiary SNL Financial India Pvt. Ltd it has global reach spans ten offices worldwide, with an ever-expanding workforce of more than 1,200 employees. Corporate headquarters are in Charlottesville, Virginia, other locations include New York, New Jersey, California, Colorado, Washington DC, Boston, India, Pakistan and the United Kingdom. [Type the company name] In the financial year 2008-09, its PBT $ 126 million and PAT $ 90 million. 3
  4. 4. 2) The external environment which encroaches on Mahindra Finance is Industry, Market, Human Resource, Technology, Economic Conditions, Government and Sociocultural sectors and for SNL are Industry sector, International, Human Resource and Technology. Taking each sector and elaborating how they are influencing to Mahindra Finance and SNL are: (a) Industry: It has many competitors, which includes TATA Finance, Citi Finance, Shriram Finance, Muthoot Finance etc. Though they have limited number of products and less operational locations but they are big competitors. To be always ahead, time-to-time monitoring, analyzing and accordingly changing the strategies. SNL has many competitors, Thomson, Bloomberg, Reuters though these are the big name as competitor but SNL Financial has its own market share as well as it is more focused on the customers. It does makes move (react) as there competitor action but it few customers demand the change in data set or more information than it will react to that. So it more a Customer driven base company compare to it Industry base. (b) Market: The customer’s taste is changing rapidly and to match their taste we changes our strategies accordingly. Now the rural customers are also interested in UV, CV, Two-wheeler, insurance, mortgage etc, rather than traditional trend of buying Tractor. (c) Human Resource: Skilled workforce plays very significant role for any organization. In the same concern Mahindra Finance always hire skilled people or regular training in respective period to cope up with competitors. We have given this task to best HR consultancy companies like Mafoi, Teamlease and NIS Sparta for providing us skilled and educated workforce. In SNL, to remain an industry leader, it hires most talented, motivated people to expand its products, improve its business processes and implement new technologies. It plays an integral role in a fast-paced, growing company with a [Type the company name] demanding, blue-chip roster of clients, all while enjoying a casual workplace. (d) Technology: Though we are not in production but we cannot ignore technology. It will have made a vast difference for not using technology. Since we have 400+ offices across India, communication, data flow, business flow, reports, policy, guidelines and strategies need to flow form head office to branch level and vice-versa. This will also build better 4
  5. 5. relationship with customers. Collection department have handheld machine for EMI collection in field, having updated details of customers, leads less number of NPA’s. Technology is high concern for SNL as it in the data mining business. It is majorly effected by the any change in technology as there are about 10 office across the globe which is connected though high speed network and storage systems. All communication, data flow, reports, policy, guidelines and strategies need to flow between the all branches. (e) Economic Conditions: Being a NBFC this factor is very influencive for us. Recession leads growth in inflation which leads more interest rate, which directly impact on our business. People in these conditions hesitate to invest or buy goods and services. Previous year’s recession had brought down our business, comparative other year’s. (f) Government: We are very restricted to follow RBI norms and policy. Change in any rule will lead impact on our business. In the same regard for opening any branch we need to follow local government policy for lease and license agreement. (g) Sociocultural: Being a NBFC, the major customers are rural, which have very strong beliefs and religion bonding. They have strong belief regarding Mahindra name, serving since 1947. They have good relationship with this name and share their experience with their ancestors. (h) International: As SNL deal in International Market so the factor like Currency Exchange and Global rescission effect it operations. Global rescission has positively effect as it has increase the demand of it products. Taking these environmental sectors and comparing with few year back, we came to know that few are the sector which influence very much. Earlier we have less number of competitors now we have many. Customers taste had changed a lot during these years; more and more people are now concern with having their own vehicle. Earlier only few [Type the company name] people have their own vehicle. Technology has changed, earlier we don’t have every branch connected to head office, and now most of all are connected. More and all we have large number of external environment in Mahindra Finance but they slowly change and these are foreseeable or predictable. There we can say that Mahindra Finance is a Complex and Stable organization which has low-moderate uncertainty, as per 5
  6. 6. the environment complexity framework. As compare to Mahindra Finance, SNL has stable and complex. Since the external environment is few but effects rapidly. Simple + Stable = Low Complex + Stable = Uncertainty Low-Moderate Uncertainty SNL Financial Simple + Unstable = high- Complex + Unstable Moderate Uncertainty = High Uncertainty Mahindra Finance 3) Industry is the common external environment sector which influences both SNL Financial Ltd. and Mahindra Finance. Market doesn’t influence to SNL as they have selected corporate clients which need selected resources from SNL. Whereas Mahindra Finance has vast number of customer from small, medium and large corporate having different preference and taste which influence a lot. Technology and Human resource will influence to both, whereas Government, Sociocultural and Economic Conditions will only cause effect on Mahindra Finance and SNL will remain same. International sector will impact on SNL, being a multinational. It has many international competitors, leads to influence it. This sector will not effect to Mahindra Finance, as it has its expansion in India itself. [Type the company name] 4) From the goals of SNL Financial, we can analyze that this company is very adaptive for new technologies coming in market as well as this company improving in their services given to customers as per the environment changes and demand created. Mahindra Finance is also adaptive in nature but as the business not requires high technology comparing to SNL Financial so they are applying pilot projects first as when 6
  7. 7. they think to change and after analyzing the results they are applying the changes in systems. SNL is customer oriented so their strategies are not changing as the environment changes while Mahindra Finance needs to change their strategies as per environment. 5) SNL Financial Structure CHAIRPERS ON PRESIDENT MD MD MD MD INDUSTRY SALES PRODUCT CONTENT RESEARCH MANAGEMENT MANAGEMENT DIR DIR DIR DIR US US US PK [Type the company name] DIR INDIA DIR US 7
  8. 8. Mahindra Finance Structure 6) SNL follows the Multi-focused grouping where as Mahindra Finance follows divisional grouping as there integrating roles between organizational structures. In Mahindra Finance each departments are based on product wise, FES (Farm Equipment Sector – Tractor), Utility Vehicle, Commercial Vehicle, Two Wheeler, Insurance, Home Loan etc., therefore it is divisional grouping. In SNL, for example, accounts analysts also perform the [Type the company name] analysis of capital market. Hence it is cross-functional in structure. As both the organization have integrity role, therefore there is no need to redesign structure. 7) In 1987 SNL was founded in New Jersey by Reid Nagle and began the coverage of the Thrift industry with just few members. During the first 10 years, company has expanded gradually and moved to Charlottesville, Va., began coverage of Banks and acquired Bank M&A Newsletter as well as launched non-bank financial sectors and Real Estate. 8
  9. 9. Released complete regulatory data on banks and thrifts. During these year all the operation are taken care by US manager and team members. Till this time, it seems to vertical chain of commands. Major decision might taken by C&F. Company is growing and may doing experiment with the structures. In next 10 year, company has expanded its operations and created the post of President and mean time in 2002 three of Board Member become the managing Director of sale and accounting as well as started outsourcing its operation in 2003. They have started the operation in India and two year later started the operation in Pakistan. Organization of India has become back office of SNL Financial LLP. They has passed it all it major operation to India office created the position of Director and Asst. Director then down the line hierarchy as well as delegated the authority same thing done for Pakistan too. Now the organization structure change drastically. While taking Mahindra Finance, it has been established in 1991 with 15 employees at Mumbai. It has initially one office and later included one more at Jaipur. Since it was the beginning of Mahindra the structure were more Hierarchical. Only one was on the top management and rest all are doing all activities like, business development, accounts, marketing, sales, recruitment, collection etc. So, all are cross-functional in structure. Later on development of Mahindra Finance it has been split into vertical structure as product head, department head and top management. 8) Culture of Mahindra Finance is Adaptability Culture. We only focus on the external environment through flexibility and change to meet customer needs. The culture encourages entrepreneurial values, norms, and beliefs that support the capacity of Mahindra Finance to detect, interpret, and translate signals from the environment into new behavior responses. [Type the company name] Most Telling Stories: In 1999 there was a Regional Head in Lucknow named Mr. B K Sinha has established more than 15 branches across the state U.P, in that respective year. He also did more than 500 businesses in a month. That was record breaking achievement of making business and still no one had ever reached that mark. This is the revolutionary achievement made Mahindra Finance a brand image in U.P. also reaches more customers by this achievement. 9
  10. 10. This famous story, which use to tell to any new employee, motivation for existing employee. Rites and Ceremonies: Every year Mahindra Finance use to celebrate Annual Convention at any famous place in India. On that occasion company use to recognize the best branch, best region, best business developer, best HR executive, best IT executive, best product seller in tractor, CV, UV, mutual fund, home loan etc. In addition there are some also award are there like, nil NPA branch, best collection, debt recovery etc. There are also regional level awards are there like best employee, productive employee and disciplinable employee. SNL has clan culture as primary focus on involvement and participation of members and on rapidly changing expectation from the external environment. SNL focus on the need of employees with high performance with greater commitment to the organization Most Telling Story and Rites and Ceremonies: Yes, it is Bill i.e. William Shulby whom we give credit for having SNL Financial in India in 2oo3. SNL Financial LLP thought of outsource it few operation and they finally selected Hi-Tech Infotech Pvt ltd run by Pranav Bhanthia. R. Bhanthia handeled this project who was suspended IT commissioner as Pranav Bhanthia was out of country who was suspended IT commissioner. Any way the operation was started in India with 3 managers and few analysts about 30. Instead of hard work and dedication, we were getting really less which had created frustration among us. When the things seem not changing our managers have talked with US counterpart unofficially and informed about the status. SNL financial send the man of it mission Bill who came here as trainer but actually he is partner of SNL. He found whatever money they send for us (analyst and mangers) from that Mr. R.Bhanthia take his cut as on above of it this commission from SNL. Some time he is not giving the facility for which SNL has paid for to Hi-Tech Infontech/ Mr. R.Bhanthia. [Type the company name] Analyzing all situations Bill had talk to our Chairman and founder about same as well as also explained the future potential of creating his own back office here. Bill along with other manager has convinced Chairman and Founder and we have SNL Financial India Pvt. Ltd. Hence we had our own organization started on 31st August 2004 which we celebrate as D Day. 10
  11. 11. We organize inter department cricket match every six month. 9) Five ways in which middle managers can contribute to organization building and maintenance: a. Initiative: Middle managers should be initiative in adopting change in strategy, authority, structure, etc to convince the followers to adapt and implement successfully. b. Creative in nature: Top level management can describe strategy or goal in broad sense, its middle level manager’s responsibility to imply with his own creativity to simplifies and easier way to understand as per requirement of lover level employees. c. Flexible: As per today’s complex environment, every employee should be flexible to adopt for changes as change is only permanent. It’s crucial for middle manager to be flexible with top management as change in strategy and with lower management as open for ideas and implement of new ways rather than specified. d. Information flow: As in organization, generally information flow from top to bottom and suggestion flow from lower to top. Middle managers are key element for both to transact, hence it should be capable of communication skill and aware of changes in organization as reliable source for lower management. e. Professionalism: Middle managers should be professional in his work, he should differentiate his work and emotion with capability of comparison and analytical of problem. Examples set by him as lead in nature. [Type the company name] 11