“A Study on the level of Employee Engagement at

Mahindra Finance”

SUMMER PROJECT REPORT

Submitted To

RAJAGIRI BUSINESS SCHOOL

In partial fulfillment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

2014 – 2016

By

Ajish Raju

Roll. No.P14163

Rajagiri Business School

Rajagiri Valley

Kochi – 682 039

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2
 INDEX

DESCRIPTION PAGE
NO.

 EXECUTIVE SUMMARY................................................................................. 1

SECTION – I PROFILE STUDY OF THE ORGANIZATION

 INDUSTRY PROFILE........................................................................................ 2
 COMPANY PROFILE........................................................................................ 10

SECTION – II PROBLEM CENTERED STUDY OF THE ORGANIZATION

 CHAPTER 1: PROBLEM FORMULATION.............................................. 60

 CHAPTER 2: RESEARCH PROCESS....................................................... 62

 CHAPTER 3: DATA ANALYSIS AND INTERPRETATION....................... 63

 CHAPTER 4: SUGGESTIONS AND RECOMMENDATIONS.................... 81

 CHAPTER 5: CONCLUSION................................................................... 82
83
 BIBLIOGRAPHY………………………………………………………………....
84
 AXENNURE………………………………………………………………............

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 List of Tables
Table No: Description Page No:
1 Key information regarding MHRFL 15
2 Key information regarding MIBL 2015 16
3 Standalone Profit & Loss Statement 18
4 Standalone Balance Sheet 19
5 Summary Key and Ratios 20

List of Figures

Figure No: Description Page No:

1 Activity Based Classification of NBFC 4
2 Number of NBFCs registered with RBI 8
3 Brand pillars 12
4 Group Structure of MMFSL 14
5 Growth of Branch Network of MMFSL 18
6 MMFSL Organizational Structure 21
7 Structure of Operations Department 23
8 Structure of Accounts Department 24
9 Structure of HR Department 25

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 EXECUTIVE SUMMARY

The study was conducted to find out the level of Employee Engagement at Mahindra
Finance, Cochin, a leading NBFC in India owned by Mahindra & Mahindra group of
companies. The project was done under the guidance of Mr. Murali Ganesh, Regional HR. It
was mainly to find out the overall Employee Engagement at Mahindra Finance, and to find
out ways to address the shortcomings in the current Engagement programmes from the inputs
of the managers and employees and to recommend a more efficient work environment which
addresses organizational and employee needs.

A common questionnaire was constructed, for employees and for managers. These were
administered to a randomly selected group of employees and managers using convenience
sampling. Followed by analysis and findings and recommendations were brought forth based
on the same.

The project also includes an organizational study which includes history of the company,
mission, vision, functional departments, markets served, SWOT analysis etc.

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1. Industry analysis

NBFC (Non-Banking Financial Company) is a heterogeneous group of financial institutions,

performing a wide range of activities like hire-purchase finance, vehicle financing, equipment
lease finance, personal loans, working capital loans, consumer loans, housing loans, loans
against shares and investment, etc. They have rapidly emerged as an important segment of
the Indian financial system. This segment has witnessed considerable growth in the last few
years and is now being recognized as complementary to the banking sector due to
implementation of innovative marketing strategies, introduction of tailor-made products,
customer-oriented services, and attractive rates of return on deposits and simplified
procedures, etc.

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)
within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the
directions issued by it under the Act. As per the RBI Act, a “non-banking financial company‟
is defined as:-

(i) a financial institution which is a company;

(ii) a non-banking institution which is a company and which has as its principal business
the receiving of deposits, under any scheme or arrangement or in any other manner,
or lending in any manner
(iii) such other non-banking institution or class of such institutions, as the bank may,
with the previous approval of the Central Government and by notification in the
Official Gazette, specify.

In terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can
commence or carry on business of a non-banking financial institution without a) obtaining a
certificate of registration from the Bank and without having a Net Owned Funds of Rs. 25
lakhs (Rs two crore since April 1999). However, in terms of the powers given to the Bank. to
obviate dual regulation, certain categories of NBFCs which are regulated by other regulators
are exempted from the requirement of registration with RBI viz. Venture Capital

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Fund/Merchant Banking companies/Stock broking companies registered with SEBI,
Insurance Company holding a valid Certificate of Registration issued by IRDA.

The regulatory and supervisory objective is to:

a) To ensure healthy growth of the financial companies;

b) To ensure that these companies function as a part of the financial system within the policy
framework, in such a manner that their existence and functioning do not lead to systemic
aberrations; and that

c) The quality of surveillance and supervision exercised by the Bank over the NBFCs is
sustained by keeping pace with the developments that take place in this sector of the financial
system.

While the functions of NBFCs are just like banks, there are few differences between both
the institutions. These are:

(i) While banks are incorporated under banking companies act, NBFC is incorporated
under company act of 1956
(ii) NBFC is not part of the payment and settlement system as well as it cannot issue
cheques drawn on itself
(iii) Deposit insurance facility of Deposit Insurance & Credit Guarantee Corporation is
not available for NBFC depositors unlike in the case of banks
(iv) NBFC cannot issue Demand Drafts like banks

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TYPES OF NBFC

NBFCs are classified in terms types of liabilities into deposit and non – deposit accepting
NBFCs, Non – deposit taking NBFCs by their size to perceive their systematic importance,
and by the kind of activity they conduct.

LIABILITIES BASED CLASSIFICATION

Based on their Liability Structure, NBFCs have been divided into two categories i.e., NBFCs
accepting public deposits or NBFCs-D, and NBFCs not raising public deposits or NBFCs-
ND. NBFCs-D are subject to requirements of Capital adequacy, Liquid assets maintenance,
Exposure norms (including 43 restrictions on exposure to investments in land, building and
unquoted shares), ALM discipline and reporting requirements; In contrast, until 2006
NBFCs-ND were subject to minimal regulation.

ACTIVITY BASED CLASSIFICATION

On the basis of activities, NBFCs are presently categorized into five,

a) Loan Companies: They are financial institution providing finance either by making loans
or advances or otherwise for any activity other than its own but does not include an Asset
Finance Company.

b) Investment Companies: They are financial institutions dealing with the business of
acquisition of securities. They are defined as having more than fifty percent of assets
deployed in investment activities and more than fifty percent of income arising from such
assets.

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 c. Asset Finance Companies: It is a financial institution dealing business the financing of
physical assets supporting productive/economic activity, such as automobiles, tractors, lathe
machines, generator sets, earth moving and material handling equipments, moving on own
power and general purpose industrial machines. Principal business for this purpose is defined
as aggregate of financing real/physical assets supporting economic activity and income
arising there from is not less than 60% of its total assets and total income respectively.

d. Infrastructure Finance Companies: An IFC is a non-banking finance company

 Which deploys at least 75 per cent of its total assets in infrastructure loans, 

 Has a minimum Net Owned Funds of Rs. 300 crore, 

 Has a minimum credit rating of „A „or equivalent d) and a CRAR of 15 percent with
a minimum Tier I capital of 10 percent 

 It has to be a non – deposit taking company. 

. Systematically Important Core Investment Companies: They are NBFCs that conduct the
business of acquisition of shares and securities under certain conditions i.e., not less than
90% of its Total Assets in the form of investment in equity shares, preference shares, debt or
loans in group companies; investments in the equity shares in group companies constitutes
not less than 60% of its Total Assets; It does not trade in its investments in shares, debt or
loans in group companies except through block sale for the purpose of dilution or
disinvestment; it does not carry on any other financial activity referred to in Section 45I(c)
and 45I(f) of the RBI act, 1934 except investment in bank deposits, money market
instruments, government securities, loans to and investments in debt issuances of group
companies or guarantees issued on behalf of group companies and also accepts public funds.

SIZE BASED CLASSIFICATION

In 2006, non‐deposit deposit taking NBFCs with assets of Rs. 100 crore and above were
labeled as Systemically Important Non‐Deposit taking NBFCs (NBFCs‐ND‐SI), and
prudential regulations such as capital adequacy requirements, exposure norms along with,
reporting requirements were made applicable to them.

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 The logic behind such classification is that the wide range of activities of NBFCs will have a
bearing on the financial stability of the country.

MMFSL has been classified as a NBFC-D and is further classified as a “hire purchase and
leasing company”. However, with effect from December 6, 2006, i.e. after the reclassification
of NBFCs, hire purchase financing companies, equipment leasing companies etc. shall fall
under the new category of NBFCs known as Asset Finance Companies.

TREND AND PROGRESS OF NBFCs

Non-Banking Financial Companies (NBFC) have rapidly emerged as an important segment

of the Indian financial system. Moreover, NBFCs assume significance in the small business
segment as they primarily cater to the credit requirements of the unorganized sector such as
wholesale & retail traders, small-scale industries and small borrowers.

The segment has witnessed considerable growth in the last few years and is now being
recognized as complementary to the banking sector due to implementation of innovative
marketing strategies, introduction of tailor-made products, customer-oriented services, and
attractive rates of return on deposits and simplified procedure etc

Since late 1980s up to mid-1990s, the number of NBFCs increased substantially on the back
of easy access of funds from capital market IPOs and deposits from the public. In 1981, there
were 7,063 NBFCs. The number went up to 24,009 in 1990 and there were as many as
55,995 NBFCs by 1995. The high deposit rates offered by NBFCs led investors to invest
their funds in NBFCs. The deposit base of the NBFCs grew at an average rate of 88.6% per
annum between the period Apr-91 to Mar-97.

After the proliferation phase of 1980s and early 90s, the NBFCs witnessed consolidation and
now the number of NBFCs eligible to accept deposits is around 600, down from 40000 in
early 1990s. The number of asset financing NBFCs would be even lower, around 350, the
rest are investment and loan companies. Almost 90% of the asset financing NBFCs are
engaged in financing transportation equipment‟s and the balance are in financing equipments
for infrastructure projects. Therefore, the role of non-banking sector in both manufacturing
and services sector is significant and they play the role of an intermediary by facilitating the
flow of credit to end consumers particularly in transportation, SMEs and other unorganized

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sectors. The role of NBFCs in creation of productive national assets can hardly be
undermined. This is more than evident from the fact that most of the developed economies in
the world have relied heavily on lease finance route in their developmental process, e.g.,
lease penetration for asset creation in the US is as high as 30% as against 3-4% in India. A
conducive and enabling environment has been created for the NBFC industry globally, which
has helped it grow and become an essential part of the financial sector for accelerated
economic growth of the countries. This is not the case in our country. It is, therefore, obvious
that the development process of the Indian economy shall have to include NBFCs as one of
its major constituents with a very significant role to play. NBFCs, as an entity, play a very
useful role in channelizing funds towards acquisition of commercial vehicles and
consequently, aid in the development of the road transport industry. Needless to mention, the
road transport sector accounts for nearly 70% of goods movement and 80% of passenger
movement across the length and breadth of the country and the role of NBFCs in the growth
and development of this sector has been historically acknowledged by several committees set
up by the Government and RBI, over the years.

A total of 12,134 NBFCs have been registered with RBI as on December 31, 2014, out of
which 221 firms have been registered as deposit taking NBFCs; while 465 stand as non-
deposit taking NBFCs with asset size of Rs 100 crore and above, additionally, nondeposit
taking NBFCs with asset size between Rs 50 crore and Rs 100 crore stand at 314 and those
with asset size less than Rs 50 crore stand at 1125.

In recent years, the number of NBFCs once again has begun to decline on account of high
cost of funds, intense competition with the banking sector and increase in consolidation
activity. The total number of NBFCs2 registered with the RBI declined by 0.5% (y-o-y) to
12,740 as at end-June 2009. The number of deposit taking NBFCs (NBFCs-D) also fell
sharply from 710 as at end-June 2003 to 336 as at end-June 2009, primarily due to the exit of
many NBFCs from deposit taking activities.

Contribution of NBFCs in the economy of India

 Development of sectors like Transport & Infrastructure 


 Substantial employment generation 

 Help & increase wealth creation 

 Broad base economic development 

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

5. Irreplaceable supplement to bank credit in rural segments

6. Major thrust on semi-urban, rural areas & first time buyers / user

FIG 2: Number of NBFCs registered with RBI (as of 31st December 2014)

FUTURE OF NBFCs

NBFCs are gaining momentum in last few decades with wide variety of products and
services. NBFCs collect public funds and provide loan able funds. There has been significant
increase in such companies since 1990s. They are playing a vital role in the development
financial system of our country. The banking sector is financing only 40 per cent to the
trading sector and rest is coming from the NBFC and private money lenders. At the same line
50 per cent of the credit requirement of the manufacturing is provided by NBFCs. 65 per cent
of the private construction activities was also financed by NBFCs. Now they are also
financing second hand vehicles. NBFCs can play a significant role in channelizing the
remittance from abroad to states such as Gujarat and Kerala. NBFCs in India have become
prominent in a wide range of activities like hire purchase finance, equipment lease finance,
loans, investments, and so on. NBFCs have greater reach and flexibility in tapping resources.

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In desperate times, NBFCs could survive owing to their aggressive character and customized
services. NBFCs are doing more feebased business than fund based. They are focusing now
on retailing sector-housing finance, personal loans, and marketing of insurance. Many of the
NBFCs have ventured into the domain of mutual funds and insurance. NBFCs undertake both
life and general insurance business as joint venture participants in insurance companies. The
strong

NBFCs have successfully emerged as „Financial Institutions‟ in short span of time and are in
the process of converting themselves into „Financial Super Market‟. The NBFCs are taking
initiatives to establish a self-regulatory organization (SRO). At present, NBFCs are
represented by the Association of Leasing and Financial Services (ALFS), Federation of
India Hire Purchase Association (FIHPA) and Equipment Leasing Association of India
(ELA). The Reserve Bank wants these three industry bodies to come together under one roof.
The Reserve Bank has emphasis on formation of SRO Particularly for the benefit of smaller
NBFCs. Thus to conclude in the view of above NBFCs play a important role in economic
development.

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2. Introduction to Mahindra and Mahindra

1. HISTORY AND INCORPORATION OF THE COMPANY

On October 2nd 1945, two enterprising brothers named J. C Mahindra and K.C Mahindra
along with Ghulam Mohammed started Mahindra & Mohammed as a steel company in
Mumbai. Two years later, India won its independence; Ghulam Mohammed left the company
to become Pakistan‟s first finance minister. And the Mahindra brothers ignited the company‟s
enduring growth with their decision to manufacture Willys jeeps in
Mumbai and the company changed its name to Mahindra & Mahindra. Since then, Mahindra
& Mahindra has grown steadily in size and stature and evolved into a group that occupies a
premier position in almost all key sectors of the economy. The Mahindra brothers believed
that new modes of transportation could be a key to India‟s prosperity, so one of their first
goals was to build rugged, simple vehicles capable of tackling the Indian terrain. Early
pioneers of globalization, the brothers collaborated with a wide range of international
companies and before long, Mahindra‟s reach extended to steel, tractors, telecom and more.
Now, after almost 70 years Mahindra & Mahindra ranks among the top 10 industrial house in
India and has a presence in 100 countries across industries with a strong network and team
strength of over 155,000 employees. They operate in the key industries that drive economic
growth, enjoying a leadership position in tractors, utility vehicles, after-market, information
technology and vacation ownership In addition, Mahindra enjoys a strong presence in the
agribusiness, aerospace, components, consulting services, defense, energy, financial services,
industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler
industries.

In 2012, Mahindra was featured on the Forbes Global 2000 list, a listing of the biggest and
most powerful listed companies in the world.

MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED

Mahindra & Mahindra Financial Services Limited is a public limited company and a part of
the US $ 16.2 billion Mahindra conglomerate. Mahindra Finance was incorporated on
January 1, 1991 as Maxi Motors Financial Services Limited and received certificate of
commencement of business on February 19, 1991.

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On November 3, 1992 Maxi Motors changed their name to Mahindra & Mahindra Financial
Services Limited. Mahindra Finance is registered with the Reserve Bank of India as a Non-
Banking Financial Corporation with effect from September 4, 1998 under section 45IA of the
Reserve Bank of India Act 1934.

In 1993, it commenced financing M & M Utility vehicles and in 1995 started its first branch
outside Mumbai, in Jaipur.They Began financing Non M & M vehicles in 2002 and got into
the business of financing of Commercial Vehicles and Construction Equipments in 2009. In
2011 they had a Joint Venture with Rabobank subsidiary for tractor financing in USA and
consolidated the product portfolio by introducing Small and Medium Enterprises (SME)
financing.

STEERING COMMITTEE

Chairman – Mr. Bharat Doshi

Managing Director – Mr. Ramesh Iyer

Directors

Mr. Uday. Y. Phadke

Mr. Pawan Goenka

Mr. Dhananjay Mungale

Mr. M.G. Bhide

Mr. Piyush Mankad

Mr. Rama Bijapurkar

Chief Financial Officer – Mr. V. Ravi

Chief People Officer – Mr. Vinay Deshpande

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Vice President – Marketing & Strategy - Mr. R. Balaji Vice President – Operations - Mr.

Rajnish Agarwal Chief Executive Officer, MRHFL - Mr. Anuj Mehra Managing Director,

MIBL – Dr. Jaideep Devare

3. VISION & MISSION STATEMENTS

VISION:

To be a leading financial services provider in semi-urban and rural India.

MISSION:

Transform rural lives and drive positive change in the communities. CORE PURPOSE AND
CORE VALUES In January 2011, the Mahindra Group unveiled a new brand positioning,
Rise. It led to the creation of a new core purpose for the Group, along with Brand Pillars that
formed a bridge between the Core Values and Core Purpose.

CORE PURPOSE

To challenge conventional thinking and innovatively use all the resources to drive positive
change in the lives of stakeholders and communities across the world, to enable them to rise

BRAND PILLARS

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CORE VALUES

Their Core Values are influenced by the past, tempered by the present, to shape the future. It
is an amalgam of what they have been, what they are and what they wish want to be

 Good Corporate Citizenship

 Customer First

 Quality focus

 Dignity of Individual

 Professionalism

EMPLOYMENT VALUE PROPOSITION:

At Mahindra Finance, the EVP they follow are:
 Growth is a way of life

 Employees are empowered

 People matter

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4. GROUP STRUCTURE AND SUBSIDIARIES

Mahindra Rural Housing Finance Limited MRHFL,

India's largest rural housing finance company was incorporated with an objective to
transform the rural and semi-urban landscape by providing cost-effective and flexible home
loans. So be it home construction, purchase, extension or improvement, MRHFL provides
loans for most home finance requirements. Today, it successfully serves over 1 lakh
customers and operates in more than 17,500 villages across states like Maharashtra, Madhya
Pradesh, Rajasthan, Gujarat, Bihar, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. In
fact, MRHFL has been responsible for some major transformations in rural India. People in
the remote villages have very little chance of getting loans from established financial
institutions due to lack of documents. And local money lenders prove too expensive. This is
where MRHFL comes into the picture and provides affordable home loans with minimum
documentation.

It has facilitated the up gradation of many “Kuccha” and unstable structures made of mud to
“Pucca” houses made of bricks and mortar, changing the flooring of houses from rough
cement base to tiles. In short, huts have turned into homes, and dreams into realities. The
Mahindra Rural Housing Finance Limited, obtained a certificate of registration to commence
business of a housing finance institution from the National Housing Bank on Aug 13, 2007.
Mahindra & Mahindra Financial Services Limited (MMFSL) holds 87.5 percent of the equity
of MRHFL and the National Housing Bank (NHB) holds the remaining 12.5 per cent. NHB,
in turn, is a fully owned subsidiary of the Reserve Bank of India (RBI).

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Mahindra insurance brokers limited (MIBL)

Mahindra Insurance brokers Limited is a subsidiary of Mahindra Finance which provides 360
degree insurance solutions, tailor-made for the diverse needs and risk profiles of its varied
consumer base. While providing direct insurance broking for the retail customer base of
around 1.3 million and catering to a large number of corporate customers, the company also
offers a range of plans for the Life as well as Non-life insurance segments.
Their vision is to become India‟s no.1 Insurance Broker in revenue by 2015.

MIBL is committed to provide value to its customers by understanding their insurance needs
and risk profile in a highly detailed and systematic manner. This helps in chalking out more
innovative, cost-effective and customized insurance solutions. And its uncompromising
adherence to the highest standards of quality is evident from the fact that it is one of the few
insurance broking companies in India to have been awarded the prestigious ISO 9001:2008

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Certification for Quality Management Systems.

MIBL was granted a direct broker license from the Insurance Regulatory and Development
Authority (IRDA) in May 2004. In Sept 2011, MIBL was granted a Composite Broker
License, thus foraying into Reinsurance Broking business along with the Direct Broking.
MIBL has empanelled itself with various public and private insurance companies to enable
offering customized solutions to the customers. As a total insurance risk solution provider
MIBL played an integral role in the Risk Management portfolio of customers.

Mahindra Business & Consulting Services Ltd

Mahindra Business & Consulting Services Private Limited (MBCSPL), provides staffing
services primarily for Mahindra Finance. Besides, it also serves the subsidiaries (MIBL and
MRHFL) and parent company (Mahindra & Mahindra Limited). During the year, MBCSPL
deputed 8,098 employees to these companies. The Profit after Tax increased from Rs. 7.1
Lacs in 2011-12 to Rs. 173.8 Lacs in 2012-13.

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Mahindra finance USA

Mahindra Finance USA LLC is our Joint Venture with De Lage Landen Financial Services
Inc., a wholly-owned subsidiary of the Rabobank Group. This Joint Venture provides
wholesale inventory financing to the US-based dealers. It sponsors dealer purchases of
Mahindra products. Besides, Mahindra Finance USA LLC also provides retail financing to
end-user customers to fund their lease or purchase of Mahindra products from the US dealers.

5. CORPORATE OFFICE AND HEAD QUARTERS

The headquarters of the Mahindra Group is located in Mumbai and the registered office of
MMFSL is also located in Mumbai. The registered offices and headquarters of its
subsidiaries MRHFL and MIBL are also located at Mumbai.

MMFSL has an extensive branch network with presence in 25 states and 4 union territories in
India through 893 offices as of March‟14 with customers present in more than 500 towns and
170,000 villages. Over the last 20 years, they have cumulatively financed assets worth over
Rs 100,000 crores and reached over 2.8 million customers. They are the largest tractor
financer in India and the largest NBFC for Mahindra, Maruti and other auto OEMs. MMFSL
has an extensive branch network with presence in 25 states and 5 union territories in India
through 1108 offices as of March, 2015. Branches have the authority to approve loans within
the prescribed guidelines.

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 FIG 5: Growth of branch network of MMFSL

6. FINANCIAL INFORMATION

STANDALONE PROFIT & LOSS STATEMENT

st
Source: Mahindra Finance Analyst meet report as of March 31

Table 3: Standalone Profit and Loss Statement

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 st
Source: Mahindra Finance Analyst meet report as of March 31
Table 4: Standalone Balance Sheet (Equity & Liabilities)

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Table 5: Summary and Key Ratios

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7. ORGANISATIONAL STRUCTURE

Organizational structure refers to hierarchy defining the relationship between the different
positions and jobs in an enterprise. At MMFSL, the organizational structure is drawn with
high efforts that every employee is well – coordinated and directed towards the achievement
of common goals of the organization

FIG 6: MMFSL organizational structure

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8. FUNCTIONAL DEPARTMENTS

OPERATIONS

Develop significant market share

Field Investigation: this is done so as to verify the background of the customers. It helps in
building reliability for the case and helps in making a decision whether or not to pass the
loan.

Once the interrogation arises, it is the branch manager who allocates the case to the
respective collection agent. The collection agent who does the investigation has to say
whether to take the case forward or reject it.

Approval process

Disbursement

Loan Administration and monitoring

Collection: it refers to a process in which the recovery executives of the branches approach
the borrowers to collect the EMI amount. This is a monthly follow up done with every
individual customer depending upon the nature and frequency of the payment done.

Recovery: It is the process of collecting the payments which is on the verge of the soft bucket
or enters into the hard bucket or has ageing more than 4. For all 3 + ageing contracts, the
branch will issue legal notice through legal cell to clear the pending amount within the
specified period. If the ageing is more than 5, based on the recommendation of the Branch
Manager the legal department will issue an order to take possession of the vehicle from the
customers.

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FIG 7: Structure of Operations Department

ACCOUNTS

Their responsibilities are:

• To maintain financial accounts

• Monthly accounting and repairing
• Control of expenditure
• Consolidate accounts
• Management of working capital
• Statutory Compliance
• Making of Audit Reports

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FIG 8: Structure of Accounts Department

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PEOPLE DEVELOPMENT (HUMAN RESOURCE DEPARTMENT)

The Human Resource Department deals with the management and control of people
employed within the organization. The Human Resource Department in Mahindra Finance is
an effective group of people who strive to work for the welfare of their employees in the
organization. The various activities under taken by the Human Resource Department are:
• Recruitment and Selection
• Induction and on-boarding
• Probation and confirmation
• Grievance handling and performance management
• Payroll Intimation
• Human Resource Record Management
• Employee Welfare and Compensation benefits
• Separation process, Confirmation and transfer

LEARNING AND DEVELOPMENT

• Training need analysis

• Competency Mapping
• Organizing and conducting training programs
• Assessment Centers

FIG 9: Structure of HR Department

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9. PRODUCT PORTFOLIO

a) Vehicle Financing: Loans for auto and utility vehicles, tractors, cars, commercial vehicles
and construction equipments.

b) Pre -Owned Vehicles: Loans for pre – owned cars, multi-utility vehicles, tractors and
commercial vehicles.

c) Small and Medium Sized Enterprising: Loans for various purposes like project finance,
equipment finance and working capital finance.

d) Personal Loans: Loans typically for children‟s education, weddings, medical treatment
and working capital.

e) Mutual Fund Distribution: Advises clients on investing money through AMFI

Certified professionals under the brand “MAHINDRA FINANCE FINSMART”

f) Insurance Broking: Insurance solutions to retail customers as well as corporations through

the subsidiary called Mahindra Insurance Broker Limited.

g) Housing Finance: Loans for buying, renovating, extending and improving homes in rural
and semi-urban India through their subsidiary known as Mahindra Rural Housing Finance
Limited.

h) Refinance: Products to support the purchase of used cars, utility vehicles, commercial
vehicles and tractors.

i) Gold Loans: MMFSL has recently started its gold loan program in Kerala. This helps in
providing liquidity against gold ornaments without having to sell it.

j) Mutual Funds: Investment advisory services help customers to invest their money in equity
through mutual fund schemes.

k) Fixed Deposit: MMFSL offers fixed deposits as an option for financial savings. As of June
2011, the fixed deposit.

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10. HR PROCESSES

Promotion

For effective business development we need to attract, retain and motivate sincere as well as
potentially able employees. We also need to encourage such employees to grow
professionally and personally to their highest possible level. We want our employees to take
pride in their work, fully realizing that their efforts contribute to the company's success and
our mutual benefit. Promotions will be awarded based on performance during the stipulated
time period, individual ability and past experience, as well as potential if two people have
similar backgrounds. We take care of their ambitions by promoting them to higher positions,
but at the same time we shall see that only the right persons are promoted to the right
positions. This is possible only when we consider promotions based on employee's potential
to handle the next role and merit alone and not length of service.

Performance Management System

a. Appraisal

An employee's performance is constantly evaluated by his / her superiors. However to avoid

haphazard or incomplete evaluations, the organization conducts a formal performance
appraisal half-yearly and / or annually.

The objective of Performance Appraisal is to measure individual vis-a-vis organizational

performance, to understand company's strengths and weaknesses, to reward high performers
and high potentials and provide training to employees on areas of development to meet future
organizational andindividual goals.

During appraisal the superior will consider the following factors over and above their
functional KRA's:

 Attendance, initiative and work

 Knowledge of work 
 Attitude and willingness 
 Quality and quantity of work 
 Other departmental competencies 

27
The organization follows the Moderation/Bell Curve method for appraisal which helps the
organization to differentiate employee's in an order of best to worst. It is a forced ranking
method where employee's performance is relatively compared with others in the organization
or department and given a rank.

b. Performance based Incentive Schemes:

MMFSL& MRHFL have introduced schemes like:

 Result Based Monthly Incentive Policy(RBMIP)-MMFSL 



 Performance Based Monthly Reward Scheme (PBMR) - MRHFL

these schemes are designed to reward employees based on performance. 

Result Based Monthly Incentive Policy (RBMIP)/ Performance Based Monthly Reward
(PBMR)

RBMI Plan is a structured process to recognize arid motivate 'High Performing Employees'
by linking their performance to the incentive (Variably Pay) system. This incentive plan is
tangible, transparent and comes with memorable reward for proven 'high-performers'.

RBMIP/PBMR works to help drive growth and is one of the more effective ways of
performance building as it explores new ways to motivate employees to outperform. This
plan would give employees a complete role and goal clarification while also leading to higher
earning for high performing employees thus creating a performance oriented

Organizational culture

Few of the many advantages of introducing such schemes are:

 Use of Transparent Method of performance evaluation and Incentive payment. 

 Provides Complete Role and Goal clarification to employees. 

 Facilitates Higher Earn ability linked to higher productivity. 

28
Employee Classification

Resignation

In the event of resignation from the service of the Company, a permanent employee will be
required to give one month's notice or forfeit in lieu thereof his salary including allowances
for one month or for the period by which the notice falls short of one month.

An employee on probation/training will have to give a fifteen days notice letter to the
reporting officer and intimate People development (H.R.) Department and settle his/her dues
with the organization before the Last Day of Working. In case if the notice period is less than
10 days, then in addition to the notice pay for the balance period, the employee would also be
required to pay an amount equivalent to one month salary as a penalty for serving less notice.

29
Exit Interviews

An exit interview shall be conducted by the respective Human Resource (H.R.) representative
with each employee who resigns, mainly to determine the reasons for the employee's decision
to leave the Company.

The information gathered from exit interview can then be used to identify problem areas, if
any, and utilized effectively in rectifying short comings in the work environment.

The findings of the Exit Interviews will be kept confidential with the People Development
(H.R.) Department and will be used for developmental purposes only.

During the time of separation the employee will receive an Exit Kit which contains all the
deseed documents which are required to be filled in before leaving the organization.

Termination

Severance from service would only be taken as a last resort. Before terminating any
employee, the \ correct disciplinary procedures would be carried out. Reasons for termination
could be any of the misconducts/misbehaviors as defined by the company.

Retirement
An employee will retire from the services of the Company on attaining the age of 60 years.

Compensation & Benefits

a. Compensation Structure
b. Compensation Benchmarking

The Mahindra Finance Group believes in providing its employees with fair and equitable
compensation for work performed and services provided. The company recognizes that a fair
and equitable compensation is important in attracting and retaining individuals with the
required skills and abilities to meet the organization's objectives.

30
a. Compensation Structure

The compensation structure (CTC) consists of four categories of elements:

i. Fixed Pay: a component which comprises of Basic Pay and Other Allowances which
are paid to the employee as per his entitlement.

ii. Variable Pay: This part of an employee CTC is linked with the employee's
performance and the organization's performance. It varies from grade to grade. This is
applicable in Conjunction with PBMI/PBMR Policy.

iii. Flexi Pay (L6M & Above): This is applicable to managerial employees
Wherein as a part of an employee's CTC, an employee can choose from and avail of
various benefits and perquisites as per his entitlement. In those grades where the
composition and value of these benefits provide scope for an employee to structure
this flexibility, the company allows the employee to specify the amounts of each
benefit within the overall individual entitlement. A maximum limit is also specified
for each benefit in line with the employee's grade.

iv. Retiral Benefits: This part of an employee's CTC consists of the following:

a) Provident Fund
b) Gratuity
c) Superannuation (L80 &above only)

31
All the salary heads are briefly explained below:

32
The company follows established procedures to review salaries on a periodic basis by the
concerned authorities.

b. Compensation Benchmarking

Every year, the Mahindra Finance Group participates in a compensation survey. This is
done to understand the compensation philosophy at different levels or positions in our
industry and for aligning the compensation of the employees in the company with respect
to industry standards.

33
ADMINISTRATION POLICIES

Mahindra Finance Group intends to establish and standardize norms for business travel
expenses for all personnel of the organization so as to take into account various
components and factors of the tour.

This policy enables employees at every level to identify the various types of expenses and
the entitlement they are eligible for:
Employees can claim for the following types expenses:
 Hotel Daily Expenses 

 Daily Allowance (Self Arranged or Hotel/Guest House Stay) 

 Mode of Travel 

Any travel to a location beyond an employee's normal area of operation for business
purposes is termed as Business travel which requires prior approval from the concerned
authority.

Entitlement

34
 Two Wheeler Expense Reimbursements

Mahindra Finance Group intends to establish and standardize norms for two wheeler
expenses.

It applies to all the eligible employees of Mahindra Finance Group for the usage of two
wheelers for official purposes at a rate of Rs. 1.50 per km.

The reimbursed amount is inclusive of maintenance expenses.

For reimbursement, employees must use the Cash Payment Voucher. All bills should be
claimed within a period of one month.

TRANSFERS

A transfer is any movement of an employee's base to new location only if the period of stay is
more than 6 months. If the period of stay is less than 6months it is treated as Deputation.

35
The transfer policy is applicable to all the employees of all locations of the company. It is
applicable only if there is change of state/branch on such transfer of the employees.

 The transfer policy is divided into 3 sub-categories: 


 Intra-state (Transfer within same state) 

 lnter-state(Transfer to another State)-L7-M&below 

 Transfer Policy for L6-M & above

Entitlement: lnter-stateTransfer-L6-M & above 


The following expenses are claimable depending upon the employee grade. 


 Pre-transfer Visit 

 Transportation of House - hold goods 

 Travel Entitlement 

 Interim Accommodation 

 Security Deposit 

 Setting Amount 

The employee would be entitled to below mentioned settling amount which will be taxable as
per the existing Taxation law and the payment for the expenses will be done against
vouchers. This is intended to cover such expenses as per the list below:

36
 City Amount (whichever is lower)

Class "A” Rs.50,000/- or 4months' basic or actual voucher amount

Class "B” Rs.30, 000/- or 2months' basic or actual voucher amount

Class "C” Rs.20, 000/- or 1.5months' basic or actual voucher amount

The list of things that can be claimed under this head, are as follows, the amount mentioned is
the maximum amount that may be claimed against each item as per the entitlement (City and
basic):
 Brokerage - One month rent subject to a maximum of Rs. 15,000 

 Leave & License Charges - Rs.2,000 

 Labour charges for unloading /loading - Rs.1,000 

 School Donation - Rs.20,000 

 Initial Laundry Charges-Rs.500 

 Gas Connection-Rs.1,500 

 Soft and Hard Furnishings (curtains, mattress, carpet, electronic items etc.) - Rs.
10,000 

In case, there are any expenses other than the ones mentioned in the list above, the same is
required to be notified and the approval needs to be taken from Head HR before expenditure.
 Vehicle Transportation (2 or 4 wheeler) 

The employee is also entitled to take transfer comfort leave as per policy and eligibility.

NOTE - Request Transfer:

37
In case of an employee who seeks transfer of his own accord and subsequent acceptance by
the management, only the travel cost for self and family as per Travel Expenses
Reimbursement will be permitted.

Entitlement: lnter-state transfer-L7M & below

The following expenses are claimable depending upon the employee grade:

The employee would be entitled to below-mentioned settling amount which will be taxable as
per the existing Taxation law and the payment for the expenses will be done against
vouchers. This is intended to cover such expenses as per the list below:

City (as per travel policy) Amount(Taxable)

Class "A" Rs.30,000/-

Class "B" Rs.20,000/-

Class "C" Rs.15,000/-

This amount is paid to cover expenses incurred by the employee such as:-
 Brokerage 

 Leave & License Charges 

 School Donation 

 Gas Connection 

Security Deposit

Note-Request Transfer:

In case of an employee who seeks transfer on his own accord and subsequent acceptance
by the management, only the travel cost for self and family (spouse, 2 children and parent)
as per Travel Expenses Reimbursement policy will be permitted.

38
 Leaves

Types Of Leaves
Particulars (i) Casual
(ii) Sick Leave (iii) Privilege Leave
Leave
All Confirmed
Eligibility All Employees All Confirmed Employees
Employees

Date of After completion of 1year

Eligible Form Date of Confirmation
Joining on on accrued basis
pro-rata basis
pro-rata basis
8 per Calendar
No. of Days 8 per Calendar year 30 per Year
year
3 days without Medical
Max. at a time 3 days Min. 4 days
Certificate
Accumulation No Max. 60 days Max. 90 days
Encashment No No Yes
With Sick Leave or
With Privilege Leave (if
Maternity Leave (if
Clubbing of extended based on
NA extended based on
Leaves submission of Medical
submission of Medical
Certificate)
Certificate)

The organization is committed to providing its employees a culture which is healthy and
supportive of work life balance. To achieve this company promotes its leave policy.
Employee can avail of the following types leaves i.e. Casual/Sick and Privilege Leave. In
case of female employees they will also have the benefits under the provision of the
Maternity Benefits Act1961 as the case may be.

Note: Leaves can either be taken as full day or half day.

Mandatory Leave

All confirmed employees of the organization who have completed 1 year at the beginning of
the calendar year are required to take mandatory leave of 15 days from that calendar year
onwards (Applicable for MMFSL& MRHFL).

39
Mandatory leaves can be broken up as many time in the year as per the PL policy, (for e.g. 5
PL each time x 3 = 15 PL year)

Note: MIBL employees will fill the leave application form and submit it to the reporting
authority for approval after which People Development (H.R.) Department will receive the
same.

Leave applications can be done using a web link on the intranet.

Attendance

The organization expects all its employees to practice good attendance habits.

 Attendance Policy is as follows: 


 Completing 8hours of work daily 

 Sign Attendance Muster daily (Non - H.O) 

 Swipe In and Swipe out using access card (H.O.) 

 Notifying your superior in case of emergency or absence. 

An employee also needs to inform his/her immediate superior before going for outdoor duty
and must maintain details in outdoor duty muster (Applicable for Branch Offices & Regional
Offices).

Employee Picnic

The company appreciates the need for providing an opportunity to the employees to have an
annual outing, not only for rejuvenation but also for promoting fellowship and team spirit.
The Picnic / Get -Together will be sponsored by the company to the extent of Rs.1000/- per
employee.

Imprest

This policy will provide the eligible employees a rolling ADVANCE money called Imprest to
manage the traveling & other out of pocket expenses for business purposes. This amount is a
onetime advance payment, which will get replenished against reimbursement vouchers
on a monthly basis.

40
Entitlement

Onetime entitlement of Imprest Pay will be as per the table below:

GRADE IMPREST AMOUNT (Rs.)

L9-O & L10-Q 4,000

L8-O & L7-O, L7-M 6,000

L6-M & Above 10,000

Note: The Imprest policy is applicable to eligible MRHFL employees only.

Additional Medical Reimbursement Policy - Dental & Spectacles

Objective

The objective of this policy is to assist employees in meeting expenses arising out of any
medical treatment with respect to dental treatments and spectacles.

Scope

The medical facility is extended to all confirmed employees in the company and their family
to take care of their medical expenses arising out of treatments with respect to dental
treatments and spectacles.

This scheme covers all confirmed employees and their families. Family, for this purpose, is
defined as.

Spouse, and two children who are dependent and unmarried up to a maximum age of 25
years.

Employees can obtain treatment from their family doctor. When a dependent child attains 25
years of age and when a daughter gets married, the employee is supposed to furnish
necessary information immediately to the concerned HR Department.

41
Dental Treatment

Reimbursement towards dental treatment will be over and above the limits for annual
domiciliary medical reimbursements as per entitlements. Reimbursement under this treatment
will be restricted as per the schedule of tariff. In case of L1 and above expenses towards
Dental treatment will b£ reimbursed at actuals without any ceiling.

Spectacles

Reimbursement towards spectacles will be over and above the limits for annual domiciliary
medical reimbursement mentioned above. Claims will be reimbursed upto Rs. 5000/-per
family p.a., in case the expense on spectacles exceed this limit, the excess amount may be
reimbursed from the employee's overall domiciliary balance, wherever applicable. In case of
LI and above expenses towards Spectacles will be reimbursed at actuals without any ceiling.

All claims submitted must clearly state the name of the family member.

Claims for spectacle frames or lenses will be allowed once a year per family member. Claims
for contact lenses will be reimbursed once a year, provided the lenses are an alternative to
spectacles. Both spectacles and contact lenses cannot be claimed in the same year for the
same family member.) Reasonable claims for 2 spectacles a year may be

Reimbursed if it is shown that they are for two different purposes i.e. reading glasses and
long distance

Procedure for reimbursement

Year for the purpose of reimbursement is company's financial year i.e. from April to March.
Claims can be submitted once a month i.e. the last working day of every month, to the
respective Regional HR representative. On verifying all related documents, arrangements for
reimbursement will be made in the succeeding month.

st
For a particular financial year all bills to be submitted for reimbursement by 31 May of the
next financial year. Any bills submitted after this date shall not be considered for payment.

a) It is mandatory that all claims for reimbursement are supported by receipts/vouchers

42
 given by the medical practitioners, diagnostic centres, clinics, etc.

b) Claims for reimbursement will have to be supported with relevant prescriptions.

RETIRAL BENEFITS

Provident Fund

The Employee Provident Fund provides for the compulsory institution of contributory
provident funds, pension funds and deposit linked insurance funds for employees. It aims
to ensure a retiral benefit to secure the future of the employee after retirement. This
scheme is applicable to all employees of the organization.

The PF scheme is provided to secure a better life for the employee in his/her old age through
self-effort for more savings and support on the company's level

It is a contributory scheme, where in the employer contributes a maximum of 12% (Basic

+ DA) and the employee has the flexibility to contribute 12 % (Basic + DA) or up to 25%.

Statutory forms need to be filled up by the employee on the event of joining the
organization which would be provided by the People Development (H.R.) Department.

Gratuity

The main objective is to provide employees monetary benefits at the time of retirement or
at the time of^ separation to those employees who have completed at least five or more
years of continuous service with the organisation. This scheme is applicable to all
employees.

Calculation-of-the Gratuity Amount-under-this-scheme-i.e, the quantum of Gratuity

1
payable is 15 days salary (Basic + DA) based on the salary last drawn by the employee
concerned for every completed year of service or part thereof in excess of six months. :

Gratuity = No. of years of service * (Last drawn Monthly Basic) * 15/26

Note: This is applicable for every completed year of service or part thereof in excess of six
months.

43
Superannuation (Applicable to MMFSL employees only)

The superannuation scheme aims to provide an employee with a sizeable corpus on, his
retirement. This corpus can be used as a revenue stream post-retirement.

Permanent employees belonging to the Grade L8 and above will be eligible for this benefit
The employer makes a contribution to LIC based on the table below. This amount is payable
only if the employee has completed minimum 3 years with the organization at the time of
retirement/termination and will be payable as pension on a monthly/annual basis depending
on the option exercised by the employee

Employees are entitled for superannuation as follows:

Grade % of Basic

L8-O to L6-M 10%

L5-M to L5-DH 12%

L4-DH to above 15%

PERQUISITES

Reimbursement of Medical Expenses

Medical Reimbursements are a part of employee's compensation package. It may vary
depending upon the grade/level of the employee in the organization.

Entitlement

Grade Entitlement

L6 M & Above As per Flexi Declaration (Upto 15000p.a)

L7-O & L7-M 1250 P.M

L8-O 750 P.M

44
This is an additional perquisite provided by the organization to its employees.

To encash this particular component of the employee's compensation structure, the

necessary bills and reimbursement form must be submitted to the Payroll Department.

Residential Computer, Broadband & Telephone Reimbursement

The Company will consider claims for residential computer, telephone and broadband
reimbursement from eligible, existing employees as per the maximum permissible
limit.

Employees above Grade L6M are eligible for this reimbursement as per their entitlement.

Entitlement

Grade Eligibility

L3 DH & Above Laptop, Printer& Broadband Internet Connection,

Residence Telephone-Reimbursement at Actuals.

L4 DH Residence, Telephone Reimbursement-&-Broadband

Facility at Actuals.

L5 M & L5 DH Rs. 24,000/- p.a. inclusive of Residence Telephone

Reimbursement & Broadband Facility

L6 M Rs. 18,000/- p:a. inclusive of Residence Telephone

Reimbursement-&-Broadband Facility

Car Entitlement

Car entitlement is a benefit available to all managerial (L6M& above) on roll employees of
the organization as per their grade.

45
The car purchase entitlement forms a part of an employee's compensation structure however
the company has made provisions for non - purchase, exchange, expense reimbursement
(fuel, accessories, repair and maintenance); details of which are available in the Car
Entitlement Policy.

Group Mediclaim Insurance

Group Mediclaim Insurance is a benefit available to all employees on rolls of the

organization. This insurance policy can be used to protect the insured against expenses
incurred towards hospitalization.

The employees and the covered dependents get cashless benefits through this facility.

Entitlement:

The entitlements of the policy are as follows:

Grade Entitlement Amount (Rs.)

L3 DH & Above 5,00,000

L4 DH & Below 3,00,000

Note: All Entitlements are subject to the terms & conditions as stated in policy.

As per the policy:

a) There is a clause in the policy for the maternity benefits to the spouse of an
employee which is a maximum of upto Rs.50,000 per child with a maximum of 2
children.

b) Co-payment of 20%of claim amount for parents claim (i.e. in case of claim of
Rs.100/-, insurance company will pay Rs.80/-& employee will have to pay balance
Rs.20/-)

c) For reimbursement claim all the required documents needs to be submitted within
60 days from the of discharge, employee can claim the post- hospitalization
separately as supplementary claim.

46
 d) Brothers and Sisters are not covered under this policy

e) Dependents more than 80 years old are not covered under this policy

f) More than 2 children are not covered under this policy

Claim Procedure

 To lodge a claim with the Insurance Company, it is necessary that the employee be
admitted to the hospital for at least a day. 

 The claim should be lodged with the concerned department within 30 days of
discharge from the hospital. All the claims are first sent to the Head Office and the
same will be forwarded to the Insurance Company with necessary covering letter. 

 The insured person must submit all original bills, receipts and other documents upon
which a claim is based. 

Personal Accident Insurance

Personal Accident Insurance is a policy devised to cover our on roll employees in case of any
bodily injury sustained, resulting solely and directly from accident caused by external, violent
and visible means then the employee or his legal-personal representative, as the case may be,
is eligible for a particular sum as per the policy.

The entitlements of the policy areas follows:

The following documents must be sent to the concerned department at Head Office for
processing the claim once discharged from hospital:

• Fitness Certificate 

• Leave certificate from the Employer 

• Declaration letter from Employer 

• Hospital Bills/OPD findings 

• Salary Slip

A Declaration Form needs to be filled by the employee, nominating the beneficiary in

47
case of an eventuality

Claim Procedure

a. In respect of permanent total or partial and temporary total disablement claims, the
employee should submit along with a claim form, a doctor's certificate, medical bills,
diagnostic reports like X-rays etc. with a view to prove the extent of accidental injuries
suffered.

b. Immediate written notice of claim must be given to the Insurance Company with full
particulars. In case of death, wherever possible, notice must be given before cremation and
in any case within one month after death. In case of loss of sight or amputation of limbs,
notice must be given within one month of such loss of sight or amputation.

Group Life Cover

Group Life Cover is applicable to all on-rolls employees of the organization.

The benefits payable on death and/or disability of the member are as per the various
entitlements as mentioned in the scheme.

Entitlement

The entitlements of the policy are as follows:

FOR MMFSL, MIBL & MRHFL

Category Flat Cover
Grade/Level

Category 1 L4 DH & Above 3,500,000

Category 2 L5M, L5 DH 2,500,000

Category 3 L6M & L7M, L7-O 1,200,000

Category 4 L8-M & MT 500,000

Category 5 L9-O 300,000

Category 6 Assistants L10 100,000

48
The cover for each member will be subject to the following:

1. Where the age at entry of a new entrant to this policy is greater than 55 years,
participation in this policy will be subject to evidence of good health and such further terms
and conditions as may be stipulated by the company.

2. No member will be covered above age 60,

All members are insured for their lives, only for as long as this policy is in force or for as
long as he/she remains a member as defined under this policy, whichever is earlier.

A Declaration Form needs to be filled by the employee, nominating the beneficiary in case
of an eventuality.

OTHER STATUTORY/NON-STATUTORY EMPLOYEE BENEFITS

Personal Loan Scheme

For meeting personal exigencies of employees the company provides personal loans.

All confirmed on roll employees of Mahindra Finance Group are eligible to avail of Personal
Loans.

Rate of Interest

Employees are eligible to avail of Personal Loans at a subsidized ROI which will vary from
time to time as per management's decision.

49
Entitlement

Recovery
Sr. No. Level Length of Service Maximum Amount
Period

Confirmed employee - Less

1a. L9O 3 Years Upto Rs.50,000/-
than 3 years of service

1b. L9O 3 Years 3 years & Above Upto Rs. 1,00,000/-

L8O, Confirmed employee - Less

2a. L7O & 3 Years Upto Rs. 1,00,000/-
L7M than 3 years of service

L8O,
2b. L7O & 3 Years 3 years & Above Upto Rs.3,00,000/-
L7M

L6M & Confirmed employee - Less

3a. 3 Years Upto Rs.4,00,000/-
Above than 3 years of service

L6M &
3b. 3 Years 3 years & Above Upto Rs.6,00,000/-
Above

In case of any other Loan, Salary Advance taken by the employee, the Department Head
and People Development (H.R.) Department will decide whether such loans and salary
advances can co-exist.

At any point of time the EMI for the availed loans should not exceed 50% of the net per
month take home of an individual (excluding reimbursement and Performa nee Pay
Amounts).

Loans may be provided at the discretion of the concerned authorities.

Salary Advance

Company provides salary advance in case of any personal exigencies. This facility is.
available only to those employees who have been with the organization for at least

50
6 months. All employees will be eligible for one month's salary advance after a minimum of
6 months service in the organization.

Up to 3 months salary as entitled to be adjusted in maximum 6 months without interest for

permanent employees who have worked for minimum 1 year, For this purpose salary will be
"net amount payable" every month after all deductions.

Salary advances may be provided at the discretion of the concerned authorities.

Education Assistance

The organization wishes to encourage desirous and deserving employees to pursue higher
studies in India with a view to help them enrich their knowledge and for better prospects in
their present employment.

Confirmed employees with the Mahindra Finance group, who have consistently performed in
the last 2 appraisals and have received a rating of either 4 or 5, are eligible for availing this
benefit.

Employee State Insurance Scheme (ESIC)

This benefit is applicable to employees who are having gross salary less than or equal to
Rs.15,000/- (Gross salary does not include any actual reimbursement)

There will be a contribution of 1.75% of gross salary by employee and 4.75% of gross salary
by employer. All employees will be issued an ESI card from the ESI Corporation and can
also avail of hospitalization benefits from ESI hospitals. Employees can register themselves
and their family with the ESIC and avail of the various benefits as per the scheme/policy
applicable.

Maternity Benefits

Mahindra Finance Group provides maternity benefits to all eligible female employee as per
the Maternity Benefit Act, 1961.

51
Grievance Redressal

The employees can approach the line managers, People Development (H.R.) Department in
case of any grievances. The People Development (H.R.) Department along with the Line
Managers investigates the details of the grievances and finds the best possible methods of
settling them.

MISCELLANEOUS FACILITIES

Bank Account Opening

Mahindra Finance Group makes it mandatory for all employees to provide their bank account
details to the People Development (H.R.) Department and Payroll Department at the time "
of Joining so that the Payroll Department can process their salaries and credit, the same into
the account.

Employees have an option to use their existing bank accounts of the below mentioned banks
or open a new account with either of these banks.

 ICICI Bank 

 HDFC Bank or 

Details of these banks would be available with the respective People Development (H.R.)
Department and Payroll Department.

Visiting Cards

All customer interfacing employees of Mahindra Finance Group need to contact their local
Administrative Department for getting their Visiting Cards issued with the approval of the
reporting authority.

Corporate Mobile Phone Connection

Employees who are eligible for mobile phone reimbursement facility as per their grade and
approval of the concerned authority can contact the local Administrative Department and
get details of the local provider with whom the organization has tied up.

 The employee needs to provide the following documents to the service provider.
Application Form of the Service provider dully filled 

52

 2 Passport Size Photographs 

 First Page of the Appointment Letter 

All applications need to be processed through the local Administrative Department only.

EMPLOYEE ENGAGEMENT POLICIES

Spandan

"Spandan" is a quarterly Magazine for the employees, which is released by the People
Development (H.R.) Department of Mahindra Finance. The top the employees on the theme
of the magazine as well on the various market place changes and imperatives for the
company. This magazine is also accessible to our employee through the intranet.

Sampark

"Sampark" is a medium of top-down communication between management and employees.

On a quarterly basis, senior/ management sends a message to all the employees through an
Audio Video medium. Sampark covers events and latest happening in the organization.
EMI

This is a monthly newsletter released by the Marketing Department. It strives to motivate,

appreciate, inform and reward those who deserve, through sections like, Success Mantra,

EMI STAR, Roll of Honour and Market Watch. It shares knowledge and seeks inputs from
the readers. It amplifies the voices of stakeholders through Meri Awaaz Suno section. The
newsletter is also available through intranet.

Learning & Development Initiatives

It is the belief that Human Resource initiatives need to be aligned with the Strategic Business
Plan of the organization. They act as imperative elements to develop competencies identified
by the organization as business enablers. These leadership and functional competencies are
identified by means of various interventions like Employee Development Plan and
Development Centers."Currently the New Hire Programs; Functional Refresher courses and
Career Mapping is delivered by in-house Learning and Development Academus - DRONA-.-

53
Employee Personal Development Plan {he; Career & Succession Planning) is being targeted
through initiatives like CHANAKYA & Training Calendar and Personal Wellness
Programs.Other initiatives on value based training involving Theatrics, Virtual Training,
Coaching, Counseling and Mentoring, Therapeutic Workshops etc. are in the pipeline to be
launched shortly.

Lastly and most importantly, we feel that the central, theme which builds meaning into the
learning and development initiatives is in the employee's interest: and involvement. This is
the necessary though not sufficient ingredient that determines speed of organization's flight
to its dreams.

Ideas

The objective of the 'Ideas' initiative is to reinforce excellence, dynamism and creativity in
an individual and help drive our business efficiently by creating a continuous reinforcement
on Innovation through employee involvement.All employees have to do is to send their
creative idea to: mmfsl.ideas@mahindra.com. If the idea is good, submission will not stay a
one-way road. If the management likes the idea and decide to realize it, then the employee
will be rewarded in exchange.

Basic Rules

 Ideas should be pertaining to our Business/New Ventures. 


 All ideas will be screened by the People Development (H.R.) Department, 

 Awardee and nature of award will be decided by the management. 

 Ideas will be patented automatically on date and arrival of the idea. 

 If there are two contenders for a single idea. Then the author will be decided on
date and time of arrival of the Idea. Whosoever sends the idea first will be the
author. 

Employee Referral Scheme - PREFER

The Employee Referral Scheme - PREFER - 'We Prefer What You Refer', has been
introduced by Mahindra Home Finance to facilitate; effective recruitment by attracting the

54
right talent achieving a personality-job-fit, and bringing together professionals from diverse
work cultures and technologies that ultimately help the organizations. Employees also stand a
chance to win various kinds of merchandise for every shortlisted refferal and every
successful referral.
The objectives are:
• To minimize existing recruitment costs 

• To bring a better 'Cultural Fit' into the organization 

• To enable employees to contribute to the talent pool of the organization, by referring
star performers in their purview 

• To empower employees towards aiding the recruitment process by making successful
referrals.

This scheme is open from time to time for the employees, based on manpower requirements.

Employee Welfare Calendar

Employee Engagement is given prime importance in our organization. A detailed calendar

capturing air such events and festivals that are celebrated within the organization is
showcased in our Employee Welfare Calendar. This helps the employees to come closer to
one another and to the organization. The calendar of events is sorted region-wise and the
organizers are allocated a budget accordingly. Participation from the employees is what
makes it a key success.

Shadow Board

The Mahindra Group has a unique initiative to encourage the young talent within our
organization. We call it the Shadow Board and the objectives of the same are as follows:

 To critique functioning of the sector and its strategies thereby bringing 'out of the box'
thinking. 

 To focus on areas, whether operational or strategic that will improve sector
performance and add value to the business 

 To enable members to graduate to a higher plane of working and initiate a process 
of reverse mentoring.
Highly performing and highly potential young employees of Mahindra Finance Group are

55
recognized and given the responsibilities of innovatively researching and presenting on
various organizational priorities to the Steering Committee(Sr. Management Team).

Fun at Work & Work Life Balance

We as an organization promote Work Life Balance to the fullest and encourage our
employees to take time off an spend it with their family and friends as well as unwind. We
have compulsorily established an off day on the 1st and 3rd Saturdays of the month when
employees are strongly discouraged from coming to work. Also we have a mandatory leave
policy which supports work life balance. Also, we are a supportive organization

where all locations promote fun at the work place by organizing events like birthday
celebrations, get together etc.

Gallup Survey - Awaaz

The Gallup survey is a very confidential and trusted medium which is used to understand
superior-subordinate relationships in the organization apart from a great deal of other factors.
The Q12 questions points out the concern areas which the management then acts upon to
make employees work life better. This Survey would be conducted on a yearly basis and
action plans are developed based on the responses from this survey which helps the
organization listen and respond to the organizational requirements.

Vista 360

360 degree feedback is a method and a tool that provides employees the opportunity to
receive feedback on how effective he is, as air employee, co-worker, staff member or boss as
viewed by others.

As a progressive organization, have included 360 degree survey feedback as an integral part
of their leadership development journey. This is an important initiative, which will help us
cascade Mahindra & Mahindra leadership values across the organization. Vista 360 will be
done every two years for a selected group of employees at leadership levels

56
Annual Convention

The Annual Convention is an event organized by the Mahindra Finance Group, which is held
with a view to celebrate achievements of the employees and the organization for the year
gone by; and the top management sets the expectations and a direction for the upcoming year
for all employee. It is held during the beginning of a financial year.

The performance of the employees is recognized and rewarded at Branch Level, Regional
Level and National Level. Apart from Branch, Regional and National Level, performance is
also recognized and rewarded at an Individual Level.

Every year the convention has a theme, as decided by the Top Management. Some of the
previous themes were 'Ek Nayi Disha' and 'Power of One'.

REWARD & RECOGNITION

Dhruvathara:
It is awarded by the people managers to employees on their exceptional contributions
towards any interfaces of the employee other than performance. This is attached to the
monetary benefit of Rs.500.

Smiley:
Smiley is a non-monetary initiative to motivate employees on a monthly basis. In a month
every employee can write specific events or appreciations on the smiley and drop it in the
achievement box, which is then opened by the committee members and selected

57
11. SWOT Analysis

Strength
 Leading company in NBFCs
 Diversified product
portfolios
 Strong brand in Mahindra &
Mahindra
 Strong Rural
presence(1000+ branches)
 Strong dividend payout ratio
& operating margin
 Client base of 2.5 million
customers
 Low attrition
 Work culture
Opportunity
 Pan India presence
 Product diversification
 Growth in economic activity
like infrastructure
development which will
lead to the need for more
construction equipment and
utility vehicles.
Weakness
 Decline in profitability
 Low market response
compared to competitors
 Limited advertisement
Threat
 In case of Vehicle
financing, company has
tough competition from
banks like ICICI, SBI etc
 Customer
attitude(defaulters)
 New entrants of commercial
vehicle is low
 Decline in profits(year to
year)

58
12. AWARDS AND RECOGNIZATION

Mahindra Finance ranks 5th in Financial Services Sector & amongst Top 50 Companies
having above 1000 employees in a study conducted by The Economic Times with Great
Places to Work Institute, India

2014-2015- Mahindra Finance wins the Golden Peacock National Training Award 2012-2013
-Mahindra Finance wins the inaugural Porter Prize in the category of Creating Distinctive
Value

2012-2013 - MRHFL selected as the winner of the Golden Peacock Innovation Management
Award 2012-2013 - Mahindra Finance first runner-up at CNBC TV18 Best Bank & Financial
Institution awards

2012-2013 - Mahindra Finance – Winner of Golden Peacock HR Excellence Awards

2012-2013 - Mahindra Finance – 1st Runner up at Best Learning Organization of Asia

Awards 2012-2013 –

Mahindra Finance – 14th Rank in the Dream Companies to Work for Awards

2012-2013 - Mahindra Finance – Top 80 Indian Power Brands

2012-2013 - APELA 2012 Award for "Commitment to Philanthropy"

59
 Chapter 1

PROBLEM FORMULATION

1. TITLE OF THE STUDY:

A study on the level of Employee Engagement at Mahindra Finance

2. BACKGROUND OF STUDY:

Employee Engagement is the act of an employee being involved in, enthusiastic about, and
satisfied with his or her work. It includes the characteristics of a workplace environment that
“attract and retain the most productive employees”. The benefits of engagement are hard to
ignore since it leads to innovation and productivity. Unfortunately, engagement can be a
tricky measure, making it easy to overlook employees‟ opinions, behaviors and concerns. It is
however, an important piece of the performance puzzle, as disengaged employees are more
likely to leave their jobs, or only do the bare minimum to get by.

Every company illustrates some level of engagement, wherein employees‟ perceptions,

autonomy and their way of doing things help us to conclude to which level they are engaged
in. Basically there are four levels of engagement:
 Basic engagement
 Employees as suppliers of service
 Engaging leadership
 Beyond ownership to passion

Survey analysis identifies the level of engagement that employees exhibit in the organization.
Apart from that, it facilitates the management to know whether engaged employees are the
drivers of performance and if engagement has any impact on attrition. Conclusions are drawn
based on which recommendations are made to the management.

Engagement survey data can be combined with on-boarding and exit survey data, to put
together an analytic data set. Analytics can then be used to predict performance, turnover,
quality of hire, and other outputs based on the data.

60
3. Relevance of the study
According to the Gallup research, “A job has the potential to be at the heart of a great life, but
only if its holder is engaged at work.”

Employees today are looking for more than just a 9-to-5 job. They want to be involved in their
work, enthusiastic about the organization they work for, and committed to their fellow workers.

The approach of this survey will serve to ensure that organization meets its commitment to
cultivate a work environment in which people and performance flourish and identify the key
aspects of employee perceptions that impact business measures.

Measuring engagement is the first and the most critical step in improving employee engagement.
With this information in hand, managers are better equipped to empower employees by
providing clear expectation and feedback that will allow them to fully succeed.

By meeting this requirement, companies can steadily improve their employee engagement,
which in turn will improve their customer service and overall profitability.

The objective of this exercise is to come up with a draft charter that will pave the way towards

Mahindra finance becoming an employer with higher engagement.

Measures of success for this umbrella of initiatives are:

 Increase in engagement scores

 Decrease in Attrition rate
 Better performance culture

61
 Chapter 2
Research methodology
Objectives
 To find out the level of engagement at Mahindra Finance (Kochi region)
 To analyze if Employee Engagement has an impact on attrition
 To analyze if Employee Engagement drives performance

Scope of the study

A sample of 90 employees pertaining to the Cochin region of Mahindra Finance has been
considered for this study. The study was conducted by collecting employee responses on their
indulgence and perceptions about their workplace through manual questionnaires and telephonic
interviews. The project was carried from Aug 17th to Sept 3th.

Methodology

The study was conducted using convenient sampling method.

The study progressed by the distribution of questionnaire among the employees of Mahindra
Finance corresponding to Cochin region. Questionnaire consisted of 18 questions, both open and
closed ended, tailored to meet the expectations of organization.

Responses received were analyzed through excel in the form of graphs and charts.

Tools used for the study

Primary and Secondary sources of data were collected for conducting the study through
following tools:

 Questionnaire- Manual
 Telephonic interviews
 Website and HR manual of Mahindra Finance

62
 Chapter 3
Data analysis and Interpretation
Presentation and Analysis of Data
3.1 Gender distribution

Gender Frequency percentage

Male 82 91.1%
Female 8 8.88%
Grand total 90 100%

Count of Gender

9%

Male
Female

91%

Inference: the chart shows that 91 % of the sample are male and rest 9 % are female.

3.2 Age distribution

Age group frequency percentage

25-30 years 19 21.1%
31-40 years 40 44.4%
41-50 years 31 34.4%
51-60 years 0 0
Grand total 90 100%

63
 Age
0%

21%
34%
25-30 years
31-40 years
41-50 years
51-60 years

45%

Inference: 21% of the respondents fall under the age group of 25-30 years whereas 45% falls
under the age group of 31-40 years rest falls under the age group of 41-50 years.

3.3 Educational Qualification

Educational frequency percentage

qualification
Certificate/diploma 0 0
Degree/Professional 33 36.66%
Master/Doctorate 57 63.33%
Grand total 90 100%

64
 Educational qualification
0%

37% Certificate/Diploma
Degree/Professional
Master/Doctorate
63%

Inference: 37% of the respondents possess a bachelor‟s degree whereas 63% of them are having
a master‟s degree or higher.

3.4 Current position

Current position frequency percentage

Non managerial level 0 0%
Executive level 44 48.88%
Supervisory level 46 51.11%
Top management and 0 0%
above
Grand total 90 100%

Current position
0% 0%

Non managerial position

49% Executive level

51% Supervisory level
Top managemnet and above

Inference: 51% of the sample responded are managers, whereas 49% are executives.

65
3.5 Period of Service

Period of service frequency percentage

3 years and less 36 40%
4- 7 years 27 30%
8- 10 years 18 20%
11 years and above 9 10%
Grand total 90 100%

Period of Service

10%

3 years and less

20% 40%
4 to 7 years
8 to 10 years
11 years and above

30%

Inference: 40% of the respondents is been working in the organization for less than 3 years
whereas 30% of them for 4 to 7 years, 20% of the respondents for 8 to 10 years and the rest 10%
of the respondents have provided their service to the organization for almost 11 years and some
are still providing.

3.6 Absence at work in the past 12 months

No of days frequency percentage

Less than 7 days 16 17.77%
7 to 15 days 57 63.33%
16 to 30 days 15 16.66%
More than a month 2 2.22%
Grand total 90 100%

66
 Absence at work in the past 12 months
2%

17% 18%

Less than 7 days

7 to 15 days
16 to 30 days
more than a month

63%

Inference: 18 % of the respondents were absent for less than 7 days whereas almost 63 % of the
respondents were absent for 7 to 15 days, rest 17 % of them were absent for around 16 to 30 days
and 2 % were for more than a month.

Note: 7-15 days of mandatory leave is provided by the organization

3.7 Reason(s) of job change in the past

Reasons of job change frequency percentage

salary 48 53.33%
Poor Leadership 4 4.44%
Nature of Job 10 11.11%
Future outlook on career 19 21.11%
Organization culture 0 0%
Fellow colleagues 3 3.33%
Conflicts/problems 4 4.44%
Bored of previous job 1 1.11%
Family issues 0 0%
Grand total 90 100%

67
 Reason(s) of job change in the past
1% 0%
3%
0% Salary
5%
Poor Leadership
Nature of job
21% Future outlook on career
Organization culture
54% Fellow colleagues
Conflicts/problems
11%
Bored of previous job
5% Family issues

Inference: Almost 54 % of the respondents left their previous organization for salary, 21% of
them left for a better career prospect, 11% of the respondents left because of the nature of their
job, whereas poor leadership and conflicts were the cause for 10% of them (5 % each) and rest 3
% and 1 % left because of fellow colleagues and boredom.

3.8 I believe in what I do every day at work

frequency percentage
Never 0 0%
Rarely 4 4.44%
Sometimes 9 10%
Often 67 74.4%
Always 10 11.1%
Grand total 90 100%

68
 I believe in what I do every day at work
0% 5%

11%
10%
Never
Rarely
Sometimes
Often
Always
74%

Inference: Almost 74% of the respondents often believes in what they do, whereas 11% always
have a belief for their work, and 5% hardly believe in what they do.

3.9 Help others with heavy workloads

frequency percentage
Never 5 5.55%
Rarely 24 26.66%
Sometimes 39 43.33%
Often 13 14.4%
Always 9 10%
Grand total 90 100%

69
 Help others with heavy workloads

10% 6%

Never
14% 27% Rarely
Sometimes
Often
Always
43%

Inference: 43% of the respondents sometimes do help others, 27% rarely may do so, whereas
14% often help employees with heavy workloads and 10% of the respondents always believe in
helping others, rest 6% hardly be of any help to others.

3.10 Enjoy working with team

frequency percentage
Never 0 0%
Rarely 1 1.11%
Sometimes 4 4.44%
Often 67 74.4%
Always 9 10%
Grand total 90 100%

70
 I enjoy working with my team
1, 1%
0, 0% 4, 5%

9, 11%

Never
Rarely
Sometimes
Often
Always
67, 83%

Inference: 83% of the respondents often enjoys working with their team, 11% of them always do,
whereas 5% of the respondents may not enjoy to that extent, rest 1% hardly enjoy working with
their team.

3.11 Recognition or praise for good work

frequency percentage
Never 0 0%
Rarely 5 5.55%
Sometimes 12 13.33%
Often 58 64.44%
Always 15 16.66%
Grand total 90 100%

71
 I have received recognition or praise for
doing good work
0%

6%
17%
13% Never
Rarely
Sometimes
Often
Always
64%

Inference: 64% of the sample has often received praise or recognition for their good work
whereas 17% of the sample has always received, 13% of the sample only has received it
sometimes and rest 6% hardly received any praise.

3.12 Looking for the ways to do my job better

frequency percentage
Never 0 0%
Rarely 0 0%
Sometimes 34 37.7%
Often 49 54.4%
Always 7 7.77%
Grand total 90 100%

72
 I am constantly looking for ways to do my job
better
0% 0%

8%

Never
38%
Rarely
Sometimes
Often
54% Always

Inference: 54% of the respondents often look for better ways to do their job, whereas 38% of the
sample sometimes may give it a try, rest 8% rarely do look for any ways.

3.13 The best way to advance in my career is to stay with the current organization

frequency percentage
Strongly disagree 8 8.88%
Slightly disagree 18 20%
Neutral 10 11.1%
Slightly agree 24 26.6%
Strongly agree 30 33.3%
Grand total 90 100%

73
 The best way to advance in my career is to
stay with my current organization

9%

27% Strongly disagree

20% Slightly disagree
Neutral
Slightly agree
11% Completely agree
33%

Inference: 33% of the respondents completely thinks that Mahindra Finance would be the better
choice to advance in their career, 27% showed slight agreement, whereas 11% of the respondents
neither agree nor disagree, but 9% of the respondents completely disagrees with the statement,
rest 20% showed slight disagreement to the fact that staying with the current organization would
not be fruitful for their career.

3.14 Information and knowledge are shared openly within Mahindra finance

frequency percentage
Strongly disagree 0 0%
Slightly disagree 0 0%
Neutral 0 0%
Slightly agree 29 32.22%
Strongly agree 61 67.7%
Grand total 90 100%

74
 Information and knowledge are shared
openly within Mahindra finance
0% 0%
0%

32% Strongly disagree

Slightly disagree
Neutral
Slightly agree
68% Completely agree

Inference: the chart shows that 68% of the respondents completely agrees with the fact that
information and knowledge are shared openly at Mahindra Finance whereas 32% of the
responded samples showed slight agreement to the statement.

3.15 Opportunities at work to learn and grow

frequency percentage
Strongly disagree 0 0%
Slightly disagree 18 20%
Neutral 17 18.88%
Slightly agree 53 58.88%
Strongly agree 2 2.22%
Grand total 90 100%

75
 The last year, I have had opportunities at
work to learn and grow
2% 0%

20% Strongly disagree

Slightly disagree
Neutral
19% Slightly agree
59%
Completely agree

Inference: 59% of the sample responded have shown slight agreement to the statement and only
2% completely agree, whereas 20% of the sample has shown slight disagreement, rest 19% of
the sample neither agree nor disagree with the statement.

3.16 Do my opinions seem to count?

frequency percentage
Strongly disagree 0 0%
Slightly disagree 2 2.22%
Neutral 25 18.88%
Slightly agree 58 64.44%
Strongly agree 5 5.55%
Grand total 90 100%

76
 At work, do my opinions seem to count?
0% 2%
6%

28% Strongly disagree

Slightly disagree
Neutral
Slightly agree
Completely agree
64%

Inference: It seems 64% of the sample responded have shown slight agreement with the
statement and 6% completely agree, whereas 28% of the sample neither agree nor completely
disagree with the fact that their opinions do count, rest 2% have shown slight disagreement to it.

3.17 Frequency of evaluating the external market

frequency percentage
Never 0 0%
Rarely 16 17.77%
Sometimes 49 54.4%
Often 15 16.66%
Always 10 11.11%
Grand total 90 100%

77
 How frequently do you look for a better
opportunity or evaluate the external job
market
0%

11%
18% Never

17% Rarely
Sometimes
Often
Always
54%

Inference: 54% of the sample responded do sometimes evaluate the external market and 18%
rarely do, whereas 17% of the sample frequently look for a job and 11% always look for better
opportunities in the job market.

3.18 Factors driving the decision of job acceptance

Factors Frequency percentage

Personal fulfillment 35 38.88%
(work/life balance)
Personal 18 20%
growth/Advancement
Compensation/benefits 34 37.77%
Corporate sovereignty/ 3 3.33%
Other goodwill
Grand total 90 100%

78
 Which of the following factors would drive
your decision to accept one job/position
over another?
3, 3%
Personal fulfillment (work/life
balance)
Personal growth/ advancement
35, 39%
34, 38%
Compensation/ benefits

Corporate sovereignty/ Other

18, 20% goodwill

Inference: As we can see 39% of the sample responded as personal fulfillment as one of the most
critical factor in accepting one job position over another, whereas 38% went for
compensation/benefits and 20% of the sample would like to have personal growth/advancement
in their job, rest 3% would go for corporate sovereignty/other goodwill to make that decision.

79
Highlights of the survey
Positives

 Around 60% employees who responded were working with the organization for more
than 5 years and still working.
 Absence at work is minimal excluding the mandatory leave.
 Around 54% of the respondent left their previous job for better salary, besides that if we
refer to the first statement, 60% of them have been rendering their service for more than 5
years. Hence compiling both the statements, we can say that, Mahindra Finance is
providing their employees with moderate compensation benefits (more at supervisory
level).
 74% of the respondents have strong belief for their work
 Around 83% of the respondents enjoy working with their team
 Around 80% of the respondents have received praise or recognition for their work
 68% of the respondents completely agree with the fact that information and knowledge
are shared openly at Mahindra Finance.
 64% of the respondent seems to agree with the statement, “In Mahindra Finance,
opinions do count”.

Threats

 Around 46% of the respondents do not put much effort in finding out better ways to do
their work, which may possibly prove a threat to the performance culture.
 Around 30% of the respondents have shown disagreements to the statement, “the best
way to advance in my career is to stay with Mahindra Finance”.
 41% of the respondents think that they haven‟t had the opportunities to learn and grow at
work.
 28% of the respondents often look for better opportunities, whereas 54% sometimes may
do.

80
 Chapter 4
Suggestion and Recommendations

 Whenever feasible, give your staff (executive level) updates on the organization‟s
financial performance and long and short term goals; explain what this information
means to them and their jobs. Keeping your team in the loop will help them feel
connected to the company
 Employees suggested a revision in the current leave policy as they suggested the HR
leave policies are not reaching at the lower executive level which may affect their work
life balance with reference to working hours in Saturdays & Sundays.
 Engagement programmes of fun followed by work concept.
 Standardization of basic pay for same grade was suggested by the employees.
 RBMI incentives are not reaching the employees which can affect the morale and
commitment of the employees, so steps can be initiated for facilitating the issue and
restructuring of RBMI policies are requested by the employees. 
 Training & development programme can be practiced at the root level on a frequent basis
especially focusing on the lower executive level to improve performance.
 Actively seek feedback from team members. Maintain an open door, and an open mind,
so that it is easy for individuals to approach you.
 Promoting the staff from within demonstrates that the organization is committed to
helping them climb the corporate ladder, and they will work hard to reach the next step.
 More compensation benefits at Executive and Administrative level (don‟t have to be
monetary)
 Recognize signs of low morale before it prevails and affect their performance.

81
 Chapter 5
Conclusion
The current study assessed the level of engagement among the employees of Mahindra
Finance, Cochin. Based on the findings, employees seem to be enjoying working with their team
which has been clearly reflected in the belief for their work. Along with that, the organization
shows a great deal of transparency in decision making and shares information across levels. The
management believes in having a participative approach in decision making. Hence, the study
clearly indicates that organization is exhibiting basic engagement, a level one engagement stage.

Apart from that, findings have also revealed that the level of engagement seems to be little
higher at the supervisory level than Executive. Nearly half of the employees (most of them at
executive level) believe that they haven‟t had the opportunities to learn or advance in their
career. According to experts, employees are likely to leave organizations when they conclude
that organization no longer meets their self interests.

Money doesn‟t buy effort, but right compensation strategies do bring performance, which can be
clearly seen lacking from the findings. Research pointed that there is a strong need for an
enhanced role of regional managers who should feel responsible for building a positive,
motivating work culture which would ensure optimum utilization of the capabilities of the team
members leading to self and organizational effectiveness. Besides that, the study has also
revealed that employee engagement do affect performance and turnover intent.

Managers need to define engagement goals in realistic, everyday terms. They should make sure
to discuss employee engagement at weekly meetings, in action planning sessions, and in one –
on-one meetings with employees to weave engagement into daily interaction and activities and to
make it part of workplace‟s DNA.

82
Bibliography
Websites:
http://www.mahindrafinance.com/
http://businessworld.in/
http://www.thehindu.com/business/Industry/attrition-a.key-worry-for-hr-managers/
https://www.crisil.com/research/nbfc-report.html

83
 How engaged are you at work?

Gender

Male Female

Age

Less than 30 years 31 to 40 years old 41 to 50 years old 51 to 60 years old

Educational qualification

Certificate/diploma Degree/Professional Master/Doctorate or higher

Current position

Non managerial level Executive level Supervisory level Top management and above

Number of years in the present company

3 years and less 4 to 7 years 8 to 10 years 11 years and above

In the past 12 months, how many days were you absent at work?

Less than 7 days 7 to 15 days 16 to 30 days More than a month

If you have change job in the past, state your reason(s) for the same

Salary Poor leadership Nature of Job Promotion Organization culture Fellow colleagues

Future outlook on career Problems/conflicts Family issues Bored of previous job

I believe in what I do every day at work

Never Rarely Sometimes Often Always

I frequently try to help others who have heavy workloads

Never Rarely Sometimes Often Always

I enjoy working with my team

Never Rarely Sometimes Often Always

I have received recognition or praise for doing good work

Never Rarely Sometimes Often Always

I am constantly looking for ways to do my job better

84
 Never Rarely Sometimes Often Always

The best way to advance in my career is to stay with my current organization

Strongly disagree Slightly disagree Neutral Slightly agree Completely agree

Information and knowledge are shared openly within Mahindra finance

Strongly disagree Slightly disagree Neutral Slightly agree Completely agree

The last year, I have had opportunities at work to learn and grow

Strongly disagree Slightly disagree Neutral Slightly agree Completely agree

At work, do my opinions seem to count?

Strongly disagree Slightly disagree Neutral Slightly agree Completely agree

How frequently do you look for a better opportunity or evaluate the external job market

Never Rarely Sometimes Often Always

Which of the following factors would drive your decision to accept one job/position over another? (By
Generation)

Personal fulfillment (work/life balance) Personal growth/ advancement Compensation/

benefits Corporate sovereignty/ Other goodwill

85