E Journal PDF

JOURNAL OF ENGINEERING, ICT & MANAGEMENT
2015
ISSN 2230-9756
GNIOT COLLEGE OF MANAGEMENT
January-March, 2015
ISSUE-8
JOURNAL OF
ENGINEERING,
ICT & MANAGEMENT
GNIOT GROUP OF INSTITUTIONS
_____________________________________________________
*GREATER NOIDA INSTITUTE OF TECHNOLOGY
*GNIOT-MANAGEMENT SCHOOL
* GNIOT COLLEGE OF MANAGEMENT
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GNIOTCOLLEGE OF MANAGEMENT
Page 1
2015
ISSUE- 1
January, 2015
PATRONS
SHRI KISHAN LAL GUPTA
- CHAIRMAN
SHRI BISHAN LAL GUPTA
-VICE CHAIRMAN
SHRI GAURAV GUPTA
- MEMBER OF MANAGEMENT
SHRI DEEPAK GUPTA
- MEMBER OF MANAGEMENT
EDITOR IN - CHIEF
PROF. (DR) ANSHUL SHARMA
PROF. (DR) SAVITA MOHAN
MANAGING EDITOR
MR VIVEK SRIVASTAVA
EDITORIAL MEMBERS
DR HIMANSHU MITTAL
MR PRASHANT DEV YADAV
MS NEHA SHARMA
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Being the Editor In chief of the GNIOT College of Management, E journal it gives me
great pleasure to bring to you this issue. It was quite inspiring to watch and witness
the potential of our students unfolding at various stages and situations each day. It is
designed to present to its readers the various events, methods and applications related
with new developments and perspectives in the field of management and business.
With a sense of pride and satisfaction I would like to say that with the active support
of the management, faculty and students, this journal has come alive. With all the
efforts and contributions put in by the students, I hope the journal will bring creative
talents of the students of the institute.
Congratulations to the editorial team for their determined efforts in bringing out this
journal.
Dr.Anshul Sharma
(Editor In Chief)
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Dear Readers,
I feel privileged in presenting the third issue of our institute e-journal. I would like to
place on record my gratitude and heartfelt thanks to all those who have contributed to
make this effort a success. My special thanks are to Dr Sunjay Yadav ,Director and
Dr.Anshul Sharma, Head of Department- for their
guidance which enabling me to
bring out this volume. It is my moral duty to thank him for giving support and
encouragement and a free hand in this endeavor. The journal also showcases the
talents of our faculty members and students. With a sense of pride and satisfaction I
would like to say that with the active support of the management, faculty and
students, e magazine has come alive .With all the efforts and contributions put in by
the students, I truly hope that the pages that follow will make some interesting
reading.
Last but not the least I am thankful to all the authors who have send their articles and
readers who made this journal so popular.
VIVEK SRIVASTAVA
MANAGING EDITOR
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Guidelines for Contributors

The JOURNAL OF ENGINEERING, ICT & MANAGEMENT invites original unpublished
research papers, review articles, short communications and book reviews on the topics of
management subjects. General guidelines for contributors are enumerated below:
1.
Manuscripts should be sent along with the authorization letter in favour of the
managingeditorekansh@gmail.com that it may be published after necessary editing and
the copyright shall remain with the GNIOT-College of Management, Greater Noida.
Manuscript should be accompanied by a brief resume of the author on a separate sheet.
2.
Manuscripts should normally be around 6,000 words (6 to 8 A-4 size pages, typed double
space). Manuscripts should be submitted in triplicate with the cover page bearing only the
title of the paper and author(s)s name(s), designation(s), official address(es), phone/fax
number(s), and e-mail address(es).
3.
Abstracts : All the manuscripts should include an abstract of about 100 to 200 words. No.
abstracts is required for review essay or case studies.
4.
Footnotes: All footnotes should be indicated by serial numbers in the text and the
literature cited should be detailed under Notes at the end of the paper bearing
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Tables should contain the source and the unit of measurement. All figures and tables
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Table1.1 about here
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References: Place the references at the end of the manuscript following the footnotes and
they must be arranged in alphabetical order. The list should mention only those sources
actually cited in the text or notes. Authors name should be the same as in the original
source. For more than one publication by the same author, list them in a chronological
order, with the older item first. For more than one publication in one year by the same
author, use small lower - case letters to distinguish them (e.g., 1999a & 1999b).
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7.
No stops after abbreviations (UK, USA, MBBS, MBA, etc.). Use stops after initials (Dr.
S.D. Sharma).
8.
Use double quotes throughout. The use of single quotes should be restricted for use
within double quotes, e.g., According to Plato, Poetics deals with different forms of
comedy and tragedy. Quotes should be cited accurately from the original source,
should not be edited, and should give the page numbers of the original publication.
9.
Books reviews must provide the following details, and in this order: Name of author/ title
of book reviewed/ place of publication/ publisher/ year of publication/ number of pages,
in Roman and Arabic figures to include hardbound. Fox example;
Sharma, S.D. Scientific & Technical Writing, 2008, Sarup & Sons, Delhi, pp. xxii+ 567,
Rs.1000/- hardbound.
10.
Manuscripts should be double spaced typed on A- 4 size paper, in 12- point font in
Microsoft word. The main text should bear only the title of the paper and then the text
content should follow.
12.
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be sharp and exhibit good contrast.
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End notes should be numbered and detailed literature should be stated in the text (using
point font - < 10) in an identified block below the text with the reference of literature
wherever applicable.
14.
Reference should mention only those sources that have relevance (i.e., cited ) to the
manuscript and should be numbered. Author(s) name should be the same as in the
original source.
16
17
Manuscripts will be considered for publication in the Journal based on the feedback of the
referee.
Manuscript not considered will not be sent back.
18
Use a single column layout with both left & right margins justified.
19
The paper should start with an introduction and end with a conclusion summarizing the
finding of the paper.
Fact of the paper presented / submitted to a conference /seminar must be clearly
mentioned at the bottom of the first page of the manuscript and the author should specify
with whom the copyright rests.
20
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TQM Tools for Gain Competitive Edge

1. Dr. K.K.Garg, Lingayas Lalita Devi Institute of management & Sciences, Mandi, New Delhi-110047
Email:- drgargkrishan@gmail.com
2. Prof Jivan Choudhary, Lingayas University, Faridabad Email: - profjkc@gmail.com
3. Mr Pranav Mishra, 1., Lingayas Lalita Devi Institute of management & Sciences, Mandi, New Delhi-110047
Emai.:- mishrpranav@gmai.com
ABSTRACT
Purpose- The increasing competition is motivating the Indian automobile industry to implement
Total Quality Management (TQM) by using a wide variety of Tools of TQM. Purpose of this
paper is to review Tools Focus on Total Quality Management (TQM) Framework in Indian
Automobile Industry.
Design/Methodology/Approach- In this paper, an effort is made for the analysis covering a sample
of 35 organizations from Indian automobile industry in a case study mode.
Finding- The Survey findings indicate that quality scenario in the Indian automobile industry is
improving and automobile manufacturer (OEMs) & Suppliers (Tier-I) are more focusing on
Tools of TQM practices and sub-contractors (Tier-II) is not responding as the changing needs of
market.
Keyword(s): Total Quality Management, Tools, Competitive Edge
INTRODUCTION
The automobile industry is one of the core industries in Indian economy, whose prospect is reflective of
the economic resilience of the country. With 4 percent contribution to the GDP and nearly 5 percent of
the total industrial output, the automotive industry has become a significant contribution to the exchequer.
Continuous economic liberalization over the years by government of India has resulted in making India as
one of the prime business destination for many global automotive players. The Indian automobile industry
comprises of the automobile and auto component industry. India is the largest three-wheeler market and
second largest two wheeler market in the world and is the fourth largest and fastest growing passenger
car market in Asia. India is also the second largest producer of motorcycles in the world.
The TQM concept refers to company-wide quality assurance from supplier to customer using system
approach of documented sets of procedures and control of process variability in a team sprit with top
management commitment. No system can work with people who are not interested in their work; Primary
task of organizations is to motivate people to work. An organization that wants to build capability for
superior performance must recognize that people are its core strength. It is the peoples motivation,
commitment, creativity and teamwork that provide strength and spirit for performance. People should be
able to work in an atmosphere that fosters self motivation, self-confidence and self-assessment for
learning and improvement. These are keys in getting the people of the organization involved in the
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process of Total Quality Management. Tools for TQM play an important role in the analysis whether it is
statistical or not. The use of tools is the more visible evidence of TQM.
RESEARCH METHODOLOGY
To obtain an insight on the awareness of Cost reduction programmed through TQM practices in the
Indian Automobile Industry, a sample of 35 respondents (05 automobile manufacturers, 20 suppliers, and
10 sub-contractors) were obtained while 200 organizations were requested to participate in the study. The
study indicated a comparative level of awareness and practice of Tools for Total Quality Management in
the Automobile Industry. The questionnaire was checked for reliability and validity by expert and
practiceners. The questionnaire was validated by sample data from original equipment manufacturers
(OEMs), suppliers (Tier-I), sub-contractors (Tier-II). In the global scenario, the automobile components
manufacturing companies are classified as Tier-I and Tier-II suppliers. The Tier-I Suppliers are those
which supply components to the original equipment manufacturers (OEMs). Tier-II suppliers are those
which supply components to Tier-I suppliers. The survey reported here was conducted from March, 2013
to May, 2013 and was restricted to companies located in NCR region of India.
Survey questionnaire, so designed, was validated with a pilot survey. The modifications were made in
order to get the required and necessary information from the different organizations under the purview of
the survey. The survey questionnaire was also designed to survey the applicability of quality tools in the
Indian automobile sector. The respondents are specifically requested to ignore their personal feelings and
use their best judgment on a five-point scale. The identified groups of respondents from the selected units
were contacted either personally or through telephone taking care that the sample represented different
departments and managerial levels. The process of administering the questionnaires was clearly
communicated personally and in writing or over telephone as applicable. It was emphasized that absolute
privacy of an individuals responses would be maintained. The respondents were also requested to only
respond to the statements keeping in view how things actually were in their organizations and not to
respond by giving their individual preferences or by comparing their organization of some ideal state.
Accordingly, a survey has been conducted in the automobile sector of the Indian organizations. The
automobile sector has been divided into three categories i.e. automobile manufacturers, suppliers and subcontractors. The 1st tier vendors have been termed as suppliers. In accordance with the nomenclature
prevailing in ISO 9000:1994 and QS 9000:1998, we have considered sub-contractor as a term to identify
suppliers supplier.
Tools for TQM

Ishikawa proposed seven elemental (Q-7) tools based on statistical techniques. These are:
(i)
Histograms
A Histogram is a graphical representation of the variation in a set of data. These known as Bar-charts.
These displays category-wise measures of the numbers as vertical or horizontal bars. It shows the
frequency or number of observation of a particular value or within a specified group. The histogram can
show whether or not the distribution is normal by plotting the estimates of such distribution.
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(ii)
Scatter Diagrams
The scatter diagram was developed so that intuitive and qualitative conclusions could be drawn about the
paired data or variables. A scatter diagram is composed of a horizontal axis containing the measured
values of one variable (independent, i.e. cause) and a vertical axis, representing the measurements of the
other variable (dependent, i.e. effect). These diagrams provide a way to study the relationship of one
variable with another which is useful for specific requirements such as product design, such as the
percentage of an ingredient in an alloy, or the number of employees errors and overtime worked. The
resulting scatter diagram could, for example, provide useful information for material selection for design
purpose.
(iii) Stratification
Interpreting data can be a creative process. There are always instances of data which seem to define a
rational explanation. Office equipments which work perfectly well one day may not work at all, the next
day. Often, a suitable stratification will be obvious to the people who have experience with a product,
process and materials and situations. So, stratifications are a method of analysis of data by grouping it in
different ways.
(iv) Pareto Analysis
Wilfred Pareto was an Italian economist who discovered a universal relationship between value and
quantity. Pareto analysis helps in identification of Vital few from the trivial many at a glance and
provides help in selecting directions for improvements. Using the Pareto principle to priorities can help
managers achieve a focus strategy, namely to focus on key revenue earning products.
Pareto analysis is a prioritization technique that identifies the most significant items among many. This
technique implies that about 80% of the problems or effects are produced by about 20% of the causes.
Pareto analysis (sometimes referred to as the 80/20 rule and as ABC analysis) is a method of classifying
items. Events or activities are according to their relative importance. It is frequently used in inventory
management where it is used to classify stock items into groups based on the total annual expenditure for
or total stockholding cost of each item. Organizations can concentrate more detailed attention on the high
value/important items. Pareto analysis is used to arrive at this prioritization.
(v) Check-Sheets
A Check sheet is an aid used in assembling and compiling data concerning a problem. It is used to collect
data on a process in order to determine whether any unusual or unwanted elements are present. The
functions of a Check sheet are Production process distribution check, Defective item check, Defect
location check, Defect cause check.
(vi) Cause and Effect (C & E) Diagrams/Ishikawa Diagrams/Fishbone Diagram
A Cause-and-Effect diagram is simply a graphical representation of an outline that presents a chain of
causes and effects. The effect is the quality characteristics, which need improvements. Causes are
sometimes broken down into the major causes include Material, Machines, Measurement, Methods and
Manpower (5Ms).
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Cause and Effect diagrams are a problem solving technique, developed in 1943 by Ishikawa in Japan as a
result of workers being confused by the number of factors which influence a process and, thus, finding it
difficult to solve process-related problems. The diagram is developed after brainstorming by identifying a
problem to be solved (i.e. effect) and the likely causes. The effect or incident being investigated is shown
at the end of a horizontal arrow. Potential causes are then shown as labeled arrows entering the main
cause arrow. Each arrow may have other arrows entering it as the principal factors or causes are reduced
to their sub causes and sub-sub-causes by brainstorming. A useful variant of this is negative
brainstorming and cause and effect analysis. Here, the group brainstorms all the things that would need to
be done to ensure a negative outcome, thereby, identifying potential road blocks and marking it easier to
dismantle these. Another variation of C & E diagrams was developed by Sumitomo Electric and is known
as Cause-and-Effect Diagram with Addition of Cards (CEDAC). The effect side of CEDAC is a
quantified description of the problem with a visually quantified target and continually updated results on
progress of achieving it. The cause-side uses two differently colored cards for writing facts and
improvement ideas, placed after duly initialled by people submitting the cards, on left and right side of
the spines respectively in the C & E diagram, and regularly updated. It could be used in analyzing high
scrap levels, quality problems, material waste, etc. The technique has got team spirit with creativity
involved.
Material and Supplies
Workers
Lack of training
Uneven surface on
Coming Material
Poorly Laid Out Work

Procedure
Methods
Improper Handling
Problem:
Dents
Improve Alignment of
Tools
in a part
Conveyers
Drop Parts Too
Far
Machine
Machine Part-Wear
and Tear
Fig.1: C&E Fishbone diagram

The most useful tool for identifying the causes of problems is a Cause-and-Effect diagram, also known as
a Fishbone or Ishikawa diagram (after Kaoru Ishikawa, a Japanese quality expert, who first developed this
tool).
(vii) Control Charts
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The backbone of Statistical Process Control (SPC) is control charts; these were first proposed by walter
shewhart in 1924. This gives a clear visual display that quickly tells when a process is out of control.
Control charts are important and display the result of statistical process control measures which depict
whether product samples conform to specified limits or tolerances. A control chart displays a central
horizontal line usually corresponds to the average value of the quality characteristics being measured.
Two other horizontal lines represent the upper and lower control limits.
Most frequently used control charts, e.g. those used in automobile and aerospace industry are simple run
charts where data is plotted against time or sample number. For variables, mean (X) and range (R) charts
are used and number defective (np) or defects (c) charts are used for attributes. Proportion defective (p)
charts are also quite commonly used for attributes. However, Cumulative Sum (CUSUM) charts offer
powerful management tool for detection of small changes in attributes and variables, especially in
chemical industry.
NEW Q-7 TOOLS
The new Q-7 tools for quality improvement are as follows:
(i)Affinity Diagram
Affinity diagram (sometimes, referred to as a KJ diagram, after the initials of the person who created this
technique, Jiro Kawakita) is a special kind of brainstorming tool. Affinity diagram is used to gather large
amounts of ideas, opinions or issues and group those items that are naturally related and, for each
grouping, a single concept ties the group together. So it is group-decision making technique designed to
sort a large number of ideas, process variables, concepts and opinions into naturally related groups.
(ii) Inter-Relationship Diagraph
Inter-relationship diagraph is a graphical representation of all the factors in a complicated problem,
system or situation. It is typically used in conjunction with one of the other quality tools, particularly, the
affinity diagram. Frequently, the header-cards from the affinity diagram are used as the starting point for
the interrelationship diagraph. Inter-relationship diagraph is a tool for finding causes to a problem. It not
only clarifies the relationship between cause and effect but also between the various causes.
(a) Identifying key or driver issues from a list of important issues.
(b) Identifying the most important problems for solving when the number of problems exceeds the
resources available to solve all of them.
(c) Identifying the root cause of existing problems.
(d) Identifying key factors needed to make a decision when there is insufficient information available
to make a data-driven decision.
(iii)Tree Diagram
Tree diagram is a tool used to generate the ideas for developing a list of alternative solutions to a problem.
A team, when faced with a problem, first uses a cause-and-effect diagram or inter-relationship diagraph to
determine the causes. After identifying the major causes for the problem, it collects data to confirm the
causes that contribute most towards the problem. This information helps the team generate ideas for
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solving the problem. Tree diagram is a tool which helps the team to do so, effectively. As we know, for
inter-relationship diagraph, one starts with the problem and develops a list of alternatives causes for the
problem. For creating tree diagram, one has to start with the solution or the desired outcomes and develop
a list of means to achieve the set objectives.
(iv) Matrix Diagram
A Matrix Diagram is a tool that is used to systematically organize information that must be compared on a
variety of characteristics in order to make a comparison, selection or choice. It is a tool which depicts the
relations between two sets of factors in the form of a table or a matrix. Matrix diagram is, sometimes,
referred to as a quality table and is the starting point in building a house of quality.
(v)Matrix Data Analysis
Matrix data analysis is the only tool among the New Seven which uses numerical data and produces
numerical results. It is, somewhat, similar to a matrix diagram with a difference that numerical data is
used instead of symbols indicating the existence and strength of relationship. With numerical data
replacing the symbols, matrix data analysis is now really a table and some people prefer to call the tool as
matrix data analysis method. The technique is used in a graphical manner in Principal Component
Analysis where only two characteristics can be studied, at a time.
(vi)Process Decision Programmed Chart (PDPC)
Process decision programmed chart is to map out conceivable and likely events and contingencies that
can occur in any implementation plan along with appropriate and reasonable counter-measures. It is a
planning tool. It forces proactive thinking on what can go wrong with ones plan and what would one do
to overcome the effect of such adverse occurrences. The tool helps to anticipate undesirable occurrences
and enables one to prepare with plans to neutralize their effect. It encourages negative thinking with a
view to plan for achieving ones goals in spite of obstacles in ones path. Instead of thinking positively
like, Do not worry: everything will be fine and being surprised and shocked when something goes
wrong, the tool encourages thinking of the worst that can happen and prepares one for it.
(vii)Arrow Diagram
An arrow diagram is a simplified kind of critical path analysis, especially developed for scheduling
activities-particularly assembly operations. It is another term for a PERT or CPM chart. It is a graphic
description of the sequential steps that must be completed before a project can be completed. It is
essentially a planning tool that determines the critical path of a project or a process. Arrow diagram is a
flow chart of the process or the project with few differences. In an arrow diagram, event nodes are
stages which denote the completion of a step or a number of steps.
The line connection the event-nodes represent the steps in the process. The time at each individual step is
used to calculate the time by which an event can be accomplished, at the earliest, and also the time by
which it must be accomplished, at latest, to complete the process in time. It can also be used for assemblyoperations.
OTHER TQM TOOLS ARE FOLLOWING:-
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1. Benchmarking Its a systematic and continual measurement process, comparing the

performance on ones organization process against competition/business leaders available anywhere in
the World to gain information, which in turn help the organization to improve its performance. The
purpose of Benchmarking is to improve products and processes. Delivery and services to meet the
customer needs. The connection between business process and customer needs is critical to efficient
Benchmarking. Benchmarking consists of measuring performance against best practices/performance
studying how they achieve performance levels and using the information, adopting them to their
environment to achieve breakthrough performance.
2. Quality Function Deployment (QFD) The concept of QFD was developed in the early 1970 in
Japan. QFD is a systematic and organized approach of taking customer needs and demands into
consideration while designing new products and services or while improving the existing products and
services. QFD is a powerful tool for use within a TQM program. The term QFD represents the overall
concept that provides a means of translating customer requirements into the appropriate technical
requirement for each stage of product development and production. Thus QFD is both a philosophy and a
set of planning and communication tools that focuses on customer requirements in coordinating the
design, manufacturing and marketing of goods.
3.
Failure Mode and Effect Analysis (FMEA)
To remain competitive it is very important not only to identify present causes of failure but also to
identify potential causes of failure during design and process stage itself. FMEA helps in building the
prevention while planning through designing and process stage.
4.
Fish Bone Diagram
Today, market needs are rapidly becoming more diversified and sophisticated, technical innovations are
arriving on the scene at a bewildering pace, and competition is becoming more and more ferocious. To
ride out these successive waves of change, every company now urgently requires people with a superior
capacity for solving problems. Fish Bone Diagram, which was developed in 1943 by Ishikawa in Japan as
a problem solving technique is being used worldwide.
5.
Brainstorming
Brainstorming is an idea generating technique pioneered by Alex Osborn. Worldwide organizations are
using this tool to encourage team working and group discussion and progressively build on the collective
wisdom in a non threading, non criticizing atmosphere.
6.
Run Chart
Run Chart displays the trend of changes of a characteristic over a period of time It is specialized graph,
which uses connected lines instead of bars to illustrate data. Decision based on facts and figures is very
important for effectiveness of any organizations.
7.
Suggestion Scheme:
In order to improve the performance of the organization, the organization should consider employees as
their most valuable assets. Globally there is a trend to improve the involvement of the employees through
Suggestion Scheme. It has been an established fact that through involvement of people, organization can
get better results.
8.
Six Sigma:
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A critical part of six sigma work is to define and measure variation with the intent of discovering its
causes and to develop efficient operational means to control and reduce the variation. The expected
outcomes of six sigma efforts are faster and more robust product development, more efficient and capable
manufacturing processes, and more confident overall business performance (Sanders and Hid, 2000). In
order to reduce the variation to a very low level, the first step is to design for productivity. This means
that designers configure a product in such manner that its performance is shielded against variation. By
doing this, the organization can be sure that its specified levels; i.e., all of the product will be on target
with minimum difference between units of product.
Table 1: Sigma conversion table
Quality Level
Defects per million Sigma

Opportunities(DPMO)
Cost of poor Types

Quality(%of
Companies
Sales)
30.9
690,000
1.0
>40
NonCompetitive
69.2
308,000
2.0
30-40
Industry
Average
93.3
66,800
3.0
20-30
99.4
6,210
4.0
15020
99.98
320
5.0
10-15
99.9997
3.4
6.0
<10
(Yield)
of
World Class
To be globally competitive, it is essential for the Indian automobile sector to follows Sigma as an
effective continuous improvement tool to deploy TQM philosophy. The foremost reason for low
implementation of Six Sigma tool in the Indian automobile sector has been identified as lack of top
management commitment. Seventy percent of the top management team has not shown interest in
implementation of this tool because of high cost involved in training the people for green belt, black and
master black belt.
9.
PDCA Circle: Worldwide organizations are using PDCA circle for problem solving. The PDCA
circle was adopted and popularized by Deming that is why this is also called Deming Circle as shown in
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Fig 2: PDCA Cycle

10.
PERT/CPM: In the context of TQM, many global organizations are using PERT/CPM achieve
customer deadline and to complete a complex task with the best available approach
11.
Statistical Process Control (SPC) SPC is used to separate out random variation (often called
common cause or non-assignable variation) from the real variation caused by changes to the process.
Control charts allow decisions to be made about processes on the basis of fact rather than gut feeling
12.
Kaizen Activities: Kaizen is a Japanese term meaning Change for the Better; the concept
implies a continuous improvement in all company functions at all level. It is found that the number of
companies engaged in Kaizen activities through quality circles are about 97% in Japan and Korea.
13.
Why Why Analysis: Why Why Analysis helps in the identification of root causes of the
problem for taking effective corrective and preventive action.
14.
Design Of Experiment (DOE): Design Of Experiment (DOE) is a technique for the optimization
of products or processes. Taguchi involves a two stage experimental design that gives the benefits of
robustness and efficiency with the minimum number of experiments. Experimental design usually
involves attempt to optimize a process, which can involve several factors (e.g., temperature, time,
chemical composition) at several levels (e.g., five possible temperatures, four possible times, six possible
chemical composition).World class organizations are very effectively using this tool particularly when
these organizations are working for Six Sigma .
15.
Total Productive Maintenance (TPM): Total Productive Maintenance (TPM) was introduced in
Japan by Seiichi Nakazima. TPM first took root in the automobile industry and rapidly became the part of
the corporate culture in companies such as Toyota, Nissam, and Mazda, and their suppliers and affiliates.
Today, organizations are using TPM to achieve startling results, particularly in reducing equipment
breakdowns, minimizing idling and minor stoppages, reducing quality defects and claims, boosting
productivity, trimming labor and cost, shrinking inventory, cutting accidents and promoting employee
involvement.
16.
5S Activities: 5S is foundation of the majority of improvement activities. Ever growing customer
demands for quality product is forcing organizations to rethink about the workplaces. This phenomenon
has been understood as product improvements cannot be done in filthy organizations and people cannot
work to their maximum potential under such dismal environment. Therefore, 5S has gained worldwide
importance. This is one of major reasons, despite 62%j of automobile sector claim to be following TQM
philosophy, why organizations have not been able to sustain improvements activities.
17.
Business Process Re-engineering (BPR): The definition of BPR is the fundamental rethinking
and radical redesign of business process to achieve dramatic improvements in business performance
.Worldwide organizations are using BPR as an innovative tool for dramatic improvement. American
automotive industry, which was in depression in early 1980s got benefited through this technique. Ford
motor achieved a 75% reduction in head count in their accounts payable departments, Reengineering
should be deployed when a need exists for heavy blasting
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RESULTS & DISCUSSION

On the basis of the feedback received from the respondents the following data were observed in the three
category viz. automobile manufacturing category, Supplier category and Sub Contractor category.
Usage of the Quality
Tools
Quality Tools
Overall
Usage
Automobile
manufacturer Category
Supplier Category
Sub Contractor
Category
5S Category
74%
35%
5%
39
Pareto Analysis
78%
80%
33%
70
Benchmarking Tools
70%
28%
None
33
TPM
62%
15%
None
24
DOE
37%
14%
None
17
Why-Why Analysis
70%
57%
None
48
Control Charts
87%
72%
None
61
Kaizen Activities
65%
35%
5%
36
Scatter Plots
45%
30%
None
28
SPC
70%
69%
5%
56
PERT/CPM
28%
18%
None
17
PDCA Circle
87%
45%
15%
49
BPR
23%
15%
None
14
Six-Sigma
10%
None
None
Suggestion Scheme
95%
69%
None
61
Run Chart
95%
55%
25%
59
Brainstorming
78%
58%
25%
56
Fish Bone Diagrams
78%
58%
25%
56
QFD
37%
26%
None
23
FMEA
25%
20%
None
17
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Histogram
70%
54%
10%
49
Table 2: Overall usage of tools for TQM

These
Figure
are
clearly
shown
category
wise
100%
in
95%
87%
90%
following
95%
87%
78%
80%
the
78% 78%
74%
70%
70%
70%
70%
70%
65%
62%
Percentage
60%
50%
45%
37%
40%
37%
28%
30%
25%
23%
20%
10%
10%
EA
og
ra
Su
g
ge
s
is
t
FM
FD
Q
BP
R
Si
xSi
gm
tio
a
n
Sc
he
m
e
R
un
C
Br
ha
ai
Fi
rt
ns
sh
t
o
Bo
rm
ne
in
g
D
ia
gr
am
s
irc
le
PM
C
A
PD
SP
C
T/
C
PE
R
D
O
E
An
al
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ys
on
is
tro
lC
Ka
ha
iz
en
rts
Ac
tiv
iti
Sc
es
at
te
rP
lo
ts
TP
M
W
hy
-W
hy
Be
n
5S
C
at
Pa
eg
re
or
to
y
An
ch
a
m
l
y
ar
si
ki
s
ng
To
ol
s
0%
Quality Tools
Fig.3: Quality Tools Used in Automobile Manufacturers

90%
80%
80%
72%
69%
70%
Percentage
60%
69%
58%
57%
50%
40%
58%
55%
54%
45%
35%
30%
35%
30%
28%
20%
26%
20%
18%
15%
15%
14%
10%
m
og
ra
M
E
A
H
is
t
F
D
Q
B
P
R
S
ix
-S
ig
tio
m
a
n
S
ch
em
e
R
un
C
B
ra h a
F
rt
in
is
s
h
B to r
m
on
in
e
g
D
ia
gr
am
s
C
A
C
S
ug
P
D
ge
s
irc
le
C
S
P
T
/C
R
P
E
T
P
M
W
hy
-W D
hy OE
A
na
C
on lys
is
tr
ol
K
ai Ch
ze
ar
ts
n
A
ct
iv
it
S
ca ies
tte
r
P
lo
ts
5S
C
at
P
ar eg
or
et
B
y
en o
ch An
al
m
ar ys
is
ki
ng
T
oo
ls
0%
Quality Tools
Fig. 4: Quality Tools used in Suppliers Category
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35%
33%
30%
25%
25%
25%
Percentage
25%
20%
15%
15%
10%
10%
5%
5%
5%
5%
M
E
A
is
to
gr
am
S
ug
ge
s
FD
B
P
R
S
ix
-S
ig
tio
m
a
n
S
ch
em
e
R
un
C
B
ha
r
ai
F
rt
ns
is
h
to
B
on rm
in
e
g
D
ia
gr
am
s
irc
le
P
D
T/
C
C
S
P
R
P
E
O
E
A
na
C
l
y
on
si
s
tr
ol
K
C
ai
h
ze
ar
ts
n
A
ct
iv
i
S
ca ties
tte
r
P
lo
ts
P
M
W
hy
-W
hy
B
en
5S
C
a
P
ar teg
or
et
y
o
A
ch
na
m
l
y
ar
si
ki
s
ng
To
ol
s
0%
Quality Tools
Fig. 5: Quality Tools used in Sub-contractors Category

In the automobile sector Fish Bone Diagram, Brainstorming, Run Chart and Pareto Diagram are very
popular and are being used for solving quality related problems where as the TQM tools of lesser use are
Histogram, FMEA, QFD, Suggestion Scheme, Six Sigma, BPR, PDCA, PERT/CPM, SPC, Scatter Plot,
Kaizen activities, Control Chart, Why-Why Analysis, DOE, TPM, Benchmarking and 5S activities, which
are also very essential for continuous improvement and better housekeeping. The overall usage of quality
tools by the Indian automobile sector is shown in the Fig.
80
34
70
29
29
28
27
60
27
27
24
24
23
50
Percentage
19
17
40
16
13
30
12
11
8
20
8
7
10
2
B
P
R
S
ix
-S
ig
m
a
E
A
M
P
FM
E
O
T/
C
R
P
E
FD
Q
TP
M
H
W
is
hy
t
-W ogr
am
hy
A
na
5S lys
is
C
at
K
ai
eg
ze
or
B
n
y
en
ch Act
iv
m
iti
ar
e
ki
ng s
To
S
ol
ca
tte s
rP
lo
ts
irc
le
C
A
C
P
D
g
in
ia
g
D
e
B
on
Fi
sh
ra
m
C
in
st
o
rm
S
P
B
ra
P
ar
et
A
na
C
ly
on
S
tro sis
ug
lC
ge
ha
st
io
rts
n
S
ch
em
e
R
un
C
ha
rt
Quality Tools
Fig. 6: Overall applicability by the Indian automobile industry
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The overall applicability of various quality tools by the respondent organizations of the Indian automobile
sector have been summarized in Table
Table3: Summary of overall applicability of Quality Tools in Indian Automobile Industry.
Respondent
Organization
Applicability of Quality Tools
No. of quality tools

used by respondent
organizations
60-70%
Pareto Diagram, Control charts and Suggestion Schemes
50-60%
Fish Bone Diagram, Brainstorming, Run Chart, Suggestion 7

Scheme, SPC, Control Chart and Pareto Diagram and 5S
activities.
40-50%
Histogram, Fish Bone Diagram, Brainstorming, Run Chart, 10

Suggestion Scheme, PDCA, SPC, Control Chart, Why-Why
Analysis, and Pareto Diagram.
30-40%
Histogram, Fish Bone Diagram, Brainstorming, Run Chart, 13

Suggestion Scheme, PDCA, SPC, Control Chart, Kaizen
Activities, Why-Why Analysis, Benchmarking, and Pareto
Diagram and 5S activities.
20-30%
Histogram, QFD, Fish Bone Diagram, TPM, Brainstorming, 16

Run Chart, Suggestion Scheme, PDCA, SPC, Scatter Plot,
Kaizen Activities,
Control Chart, Why-Why Analysis,
Benchmarking, and Pareto Diagram and 5S activities.
10-20%
Histogram, FMEA, QFD, Fish Bone Diagram, Brainstorming, 20

Run Chart, Suggestion Scheme, BPR, PDCA, SPC, Scatter
Plot, Kaizen Activities, Control Chart, Why-Why Analysis,
DOE, PERT/CPM, TPM, Benchmarking, and Pareto Diagram
and 5S activities.
<10%
Histogram, FMEA, QFD, Fish Bone Diagram, Brainstorming, 21

Run Chart, Suggestion Scheme, BPR, PDCA, SPC, Scatter
Plot, Kaizen Activities, Control Chart, Why-Why Analysis,
DOE, PERT/CPM, TPM, Benchmarking, Pareto Diagram, 5S
activities and six sigma.
It has been observed that the most popular quality tools among the Indian automobile sector are Pareto
Diagram, Control Charts and Suggestion schemes as 60-70% of the respondent organizations are using
only these two tools to solve their quality related problems. Further, 50-60%, 40-50%, 30-40%, 20-30%,
10-20%, and less than 10% of the respondent organizations are using 7, 10,13,16,20, and 21 quality tools,
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respectively. However, the least understood tool is Six Sigma, which is being used in less than 10% of the
organizations.
Conclusion
To be gain competitive edge it is very important that Indian automobile Industry must focus for the
implementation tools for TQM. For effective process control it is very important to use Histogram but
only 48% of the responding Indian automobile organizations claim to be using Histogram as a quality
tool. Overall there is a need for improving process control for getting better results using this vital quality
tool. Only 18% of the Indian automobile Industry is using FMEA as a tool for assessing potential failure
for investigation, which is very low. The usage of QFD in the Indian automobile sector is very low as
only 24% of the organizations are focusing on QFD.. About 59% of the Indian automobile organizations
are using Fish Bone Diagram as vital tool for solving quality related problems, which is still quite low.
Indian automobile Industry has understood the vitality of this tool and 59% of the organizations are using
this tool. In the surveyed organizations about 63% of the organizations are using this chart to understand
the trends and effects of various countermeasures being implemented in the plant. Though 56% of
organizations claim to have suggestion scheme in their organizations, still the organizations have not
been able to make full use of the potential of all employees. This is evident with the results of
organization having rejections more than 4% as discussed before. For the Indian automobile Industry, 6sigma implementation is not well adopted as a tool for making continuous improvement. Only 5% of
respondent organizations claim to follow 6-sigma tool. That is the reason why Indian automobile sector
in general have not been able to achieve consistent level of quality based on + - Sigma, which means that
the parts falling outside the normal process range will be around 2700 parts-per- million (2700ppm)
where as rejections in automobile sector is more than 4%(40,000ppm).Motorola Corporation that received
Malcolm Baldrige National Quality Award (MBNQA) in 1988 based its major efforts on 6-Sigma.
Though 55% of the Indian automobile sectors claim to be following PDCA circles the earlier result of
higher rejection level and few organizations seriously focusing on cost reduction speaks to the contrary.
The result of the survey indicates that the Indian automobiles sector has not effectively used the potential
of this tool, which is reflected in the fact that only 19% of the organizations are using this tool. That is
one of the reasons why most Indian projects undergo in over runs. Though 53% of the Indian automobile
organizations claim to be using SPC, however the higher average rejection rate of 4% (40,000 ppm) does
not corroborate the same. In our survey, only 28% of the organizations claim to be using Scatter Diagram.
Though 40% of the Indian automobile organization claim to follow Kaizen activities, yet effective
participation in quality circles is almost negligible considering the vast population of the country.
Therefore, to be globally competitive it is essential for the Indian automobile sector to create conducive
atmosphere where everyone is involved in Kaizen activities individually or through quality circles. Only
56% of the surveyed Indian automobile sector claim to follow control charts. The low percentage is
mainly due to extremely poor use of this tool by sub-contractor of the automobile sector. The high
rejection level of the organizations does not corroborate the effective use of this vital tool. The survey
indicates that 46% of the Indian automobile sector claim to follow why-Why Analysis. Majority of the
organizations are working only on symptoms that are the reason why problems keep on repeating. Overall
there is a need for using this effective tool for getting better results. However, by and large the Indian
automobile sector has not understood the utility of DOE and only 20% of the organizations have
responded that they are using this tool. Still Indian automobile sector has not understood the utility of
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TPM and only 29% of the organizations claim to be using TPM .To achieve the world class results, the
Indian automobile sector has to focus on TPM much more vigorously. However, the Indian automobile
sector has not effectively used this tool. Only 35% of the organization are using benchmarking tool to
improve the performance of the organizations. The survey indicates that 66% of the Indian automobile
organizations are using this tool. To be competitive globally, Indian automobile organizations have to
prevent the problems from recurring. Organizations are required to do root cause analysis to prevent the
problems from recurring. This is also confirmed by the low percentage of Indian automobile
organizations focusing on 5S activities. As can be seen form Figure 4.7, only 43% of the organizations are
using 5S activities. However, in the Indian automobile sector only 16% of the organizations is using this
tool to achieve higher performance results). If Indian automobile sector wants to be globally competitive
it must focus on this vital tool.
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NPA: MANAGEMENT OF NATIONLISED BANKS

*Mr Deepak, Assistant Professor, Gniot Group of Institution, Greater Noida
**Mr Vivek Srivastava, Associate Professor, Gniot Group of Institution, Greater Noida
**Mr Mridul Dharwal, Faculty, Sharda University, Greater Noida
**Dr M L Maurya, Professor and Head, Bundelkhand University, Jhansi
Abstract
As far as the present scenario is concerned, the banking industry is in a transition phase. The
Public Sector Banks, which are the foundation of the Indian banking system account for more
than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive
Non Performing Assets (NPA), massive manpower and lack of modern technology. It is also
dangerous for banks profitability credibility and economics of scale. Narasimham Committee
report recommended various guidelines to RBI in 1993 to identify and reduce of NPAs be treated
as national priority.NPA indicated the bankers credit risks and efficiency of allocation of
sources. The Financial reforms have helped largely to reduce NPA in Indian Bank Industry. This
paper attempts to analyze the performance of different banks. To compare the performance of
public sector, private sector and foreign banks selective indicators were taken into
considerations. These Indicators were Gross NPAs and Gross Advances.
Keywords
Issue and Challenges for Indian Banking Industry, Impact and Causes of NPAs, Co-relation
between Gross NPAs & Gross Advances.
Introduction
The Indian banking industry regulated by the Banking Regulation Act of India, 1949.It can be
divided by two categories .One is scheduled banks and other is non scheduled banks.
Scheduled Banks consisted commercial banks and the co-operative banks. Commercial Banks
comprise nationalized banks, The SBI & its associated banks, foreign banks, regional rural banks
and the old/new private sector banks on the basis of ownership.
Indian Banking has a long period history which has evolved over many years passing through
different various phases .It has undergone note worthy transformation following financial sector
reforms but at present ,it is passing through a decision phase .Indian Bank adopt international
best practices in regulation and supervision of money market. So, It create a strong competitive
and vibrant banking system into due prudential norms .It means to allow entry of new private
sector banks and foreign banks, access the capital market permission , flexibility in operational
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work and financial autonomy to public banks ,improve to corporate governance practices and
maintain standards practices. Banks have diversified our role into non-traditional activities and
result comes in the form of conglomerate .Therefore, deregulation has opened up new height for
banks to augment income.
Issue and Challenges for Indian Banking Industry
The Indian Banking System faces a series of reform over the last years in respect of deregulation
of interest rates, the role of government increases in public sector banks and the increased
participation of private sector banks. New foreign banks are very crazy to cover all Indian
customer financial market because of Indian Public and Private bank have not capable to tap the
domestic market.
There are several challenges for Indian banks in a competitive environment as follows: Non Performing Assets (NPAs)
Risk Management & Basel II
Consolidation
Overseas Expansion
Technology
Government Reforms
Skilled Manpower
Consumer Protection
Meaning of NPA
An asset called NPA when the borrower fails to repay the interest and/or principal amount on
agreed terms. It means stop to generate income for the bank. A NPA treated as past due to
amount in respect of credit facility in terms of interest and /or installment or principal amount for
two quarters or more. The past due means the amount has not been paid within 30 days from the
due date .This concepts comes with effect from 31 march 2001.
Impact of NPAs on Banking Operation
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The efficiency of bank is reflected the size of its balance sheet but the level of return on its assets
is also important factor .The NPAs adversely affected to generate interest income but as parallel
banks are required to give some provision for NPAs from their current profits.
The NPAs have blasting impact on the return on assets in the following ways:1. The capital adequate ratio is disturbed and cost of capital will go up.
2. The Economic Value Addition (EVA) by banks gets upset.
3. The current profits of banks are eroded.
4. The interest income of banks reduced due to non-receipt basis.
5. Banks profitability is affected adversely because of the provision of doubtful debts and
consequent write off as bad debts.
6. Return on Investment (ROI) is reduced.
7.
The assets and liability mismatch will widen.
8.
It limits recycling of the funds.
Causes for mounting NPAs

The NPAs in PSBs are increasing by external and internal factors. PSBs are facing more problem
than the private and foreign banks. Directed loans system is one of the main causes of NPAs in
which commercial banks are required to give 40 percentage of their credit to priority fields.
Directed loans system issue the loan to the micro sector like sick or weak units. The another
important sources of NPAs is poverty elevation programs like IRDP, RREP,SUME,JRY,PMRY
etc. failed due to some reasons in fulfilling their objectives. The maximum amount of loan
granted under these schemes .These amount was totally unrecoverable by political manipulation,
misuse of funds and wrong target audience of these sections. Some of the important reasons for
NPA, mentioned in various literatures are summarized below:
1. Inadequate support from RBI/NABARD in meeting the fund-needs of these banks.
2. Corruption, nepotism, favoritism and Undue intervention by political bigwigs.
3. Improper, ineffective proposal appraisal system and inefficient credit risk management.
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4. Direct lending under subsidy schemes and Lack of proper pre-appraisal and follow up.
5. Un-sound financial condition of the borrower and improper selection of borrowers/activities.
6.
Inadequate working capital leading to operational issues under financing/untimely financing.
7. Delay in completing the project and Diversion of funds for expansion\modernization\setting

up new projects\ helping or promoting sister concerns.
8.
In-ability of the corporate to raise capital through the issue of equity or other debt instrument
from capital markets.
9. Business failures to identify problems in advance.
10. Deficiencies on the part of the banks viz. in credit appraisal, monitoring and follow-ups,
delay in settlement of payments\ subsidiaries by government bodies etc.
Guidelines for minimizing NPAs:
Banks are required to follow certain guidelines to minimize the non-performing assets. These are
listed below:
1. Use of proper internal systems: Banks should establish appropriate internal systems to
eliminate delays or postponement in the identification of NPAs, especially for high value
accounts.
2. Classification of accounts with short-term deficiencies: The classification of an asset
as a NPA should be based on the record of recovery. Banks should not classify an
advance account as an NPA simply due to the existence of some deficiencies, which are
temporary in nature, such as non-availability of adequate drawing power based on latest
stock.
3. Asset classification should be borrower-wise and not facility wise: It is difficult to
predict a situation where only one asset of a borrower becomes a problem with respect to
recovery. Therefore, all the assets loaned by a bank to a borrower have to be treated as
NPAs, and not a particular asset.
4. Advances under consortium arrangements: Asset classification of advances taken
from consortiums should be based on the record of recovery of the individual member
banks, as well as other aspects that have a bearing on the recoverability of these
advances.
5. Agricultural advances: In respect of advances granted for agricultural purposes, if the
interest or installment of principal remains unpaid for two harvest seasons after it
becomes due, this advance is to be treated as a NPA. When natural calamities impair the
repaying capacity of agricultural borrowers, banks may convert a short-term production
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loan into a term loan, or re-schedule the repayment period as a relief measure. In this
case, the term loan as well as fresh short-term loan may be treated as current dues and
need not be classified as a NPA.
6. Restructuring/rescheduling of loans: A standard asset, where the terms of the loan
arrangement regarding interest and principal have been renegotiated or rescheduled after
the commencement of production, should be treated as a sub-standard asset and should
remain in that category for at least one year of satisfactory performance under the
renegotiated or restructured terms. In case of sub-standard and doubtful assets also,
rescheduling does not entitle a bank to upgrade the quality of advances automatically,
unless there is satisfactory performance under the rescheduled/renegotiated terms.
Procedures for NPA identification and resolution in India
Since a high number of NPAs dampens the performance of banks, it is important to identify
potential problem accounts and monitor them closely. Though most banks have Early Warning
Systems (EWS) for identification of potential NPAs, the actual processes followed differ from
bank to bank. The EWS enables a bank to identify the borrower ac-counts that show signs of
credit deterioration and initiate remedial action. Many banks have evolved and adopted an
elaborate EWS, which allows them to identify potential distress signals and plan their options
beforehand, accordingly.
The early warning signals indicate potential problems in the ac-counts, which include persistent
irregularity in accounts and delays in servicing of interest payments. In addition, some of these
banks review their exposure to borrower accounts every quarter based on published data, which
serves as an important additional warning system. These early warning signals used by banks
are generally independent of the risk rating systems and asset classification norms prescribed by
RBI.
The major components or processes of the EWS followed by banks in India, as brought out by
a study conducted by Reserve Bank of India at the insistence of the Board of Financial
Supervision, are as follows:
1.
2.
3.
4.
5.
Appointing a relationship manager/credit officer for monitoring accounts

Preparation of know your client profiles
Following a credit rating system
Identification of watch list /special mention category accounts
Monitoring of early warning signals
Literature Review
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A large number of researchers have been studied to the issue of NON PERFOMING ASSET in
banking industry .A review of the relevant literature has been described as under:Krishnamurthi, C.V.(2000) observed that the rising NON PERFOMING ASSETS is serious
diseases for the public sector banks .It shows that the gross NON PERFOMING ASSET of
PUBLIC SSECTOR BANKS are mounting very heavily .The NON PERFOMING ASSET
curses lie between a gross of Rs.39.253 crores in 1992 -93 to Rs.45,463 crores in1997-98.
Munniappan (2002) studied the diseases of NON PERFOMING ASSET into two factors
.One is internal factor in respect of portfolio of funds for expansion, modernization and
diversification, accept new projects etc. Second is external factor in respect of recession in
economy, other countries suffered from non performing assets assessment, input/power shortage,
price up and downs uncertain natural calamities etc.
Das & Ghosh (2003) studied non-performing loans of Indian PUBLIC SECTOR BANKS on the
basis of various indicators like as assts size, operating efficiency, and macroeconomics condition
and credit growth.
Gupta, S and Kumar ,S (2004) defined that redeeming features of banking sector reforms is the
continuing downfall in gross and net NON PERFOMING ASSET as a proportion of total assets
for all bank groups .NON PERFOMING ASSETS needs resolution otherwise it can break the
backbone of entire economic system with financial system .
Banerjee,B. and Dan,A.K (2006) analyzed that NON PERFOMING ASSETs are one of the most
crucial problem which is faced by bank to require attention for improvement in the management
of PSBs are increasing very speedily at present scenario due to following reason . one is
government has got to bail out banks with monetary fund provisions sporadically and ultimately
taxpayers bear the value .Second is cash borrowed for investment ,for not utilized properly
,affects the creation of assets and therefore the growth of economy is vulnerable .The author has
urged many strategic measures to manage Non playing assets of Public sector banks.
Jatna, Ranu (2009) states main cause of mounting NON PERFOMING ASSETs in public sector
banks is malfunctioning of the banks. Narasimham Committee identified the NON
PERFOMING ASSETs as one of the possible effects of malfunctioning of PUBLIC SECTOR
BANKS.
Dong he (2002) in his study focuses on the nature of NON PERFOMING ASSET in Indian
banking system and define the important role of assets reconstruction companies in resolving
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NON PERFOMING ASSETS.

Prof G.V.Bhavani Prasad and Veera D (2011) examined that the reason behind the falling
revenues from traditional sources is 78% of the total NON PERFOMING ASSETs accounted in
PUBLIC SECTOR BANKS.
Dr.P.Hosmani & Hudagi Jugdish(2011) found that a slight improvement in the asset quality
reflected by downsize in the NON PERFOMING ASSET percentage.NON PERFOMING
ASSET is an improvement scale for assessing financial performance of Indian banks. The
mounting value of NON PERFOMING ASSETS will adversely affected to financial position in
term of liquidity, profitability and economic of scale in operation. Bank has to take timely
necessary steps against degradation of good performing assets.
Manish B Raval (2012) studies to understand the major composition of NON PERFOMING
ASSETS in Indian Banks and compared the three compositions i.e. Priority sector, Non Priority
sector and others sector of NON PERFOMING ASSETS between Nationalized and SBI and its
associates. The researcher stated that there is no significant difference between three
compositions of NON PERFOMING ASSETS to total NON PERFOMING ASSETS in
nationalized banks and SBI and its associates.
Dr.A Dharmendran (2012) examine the position & growth of standard assets ,substandard assets,
loss assets ,gross nonperforming assets provision for non performing assets & net non
performing assets with the help of percentage analysis method & compound growth rate for all
the state Co-operative banks in India.
Nature and scope of the study
The present study is empirical and descriptive in nature. The study is confined to examine
the state of Nonperforming assets in Commercial banks operating in India under
consideration of six years.
Objective of the study
This research has been undertaken with the following objectives:
1. To find out the NPA position of selected public sector banks. (All Nationalised banks in
India)
2. To find the trend in NPAS of the Nationalised banks.
3. To analysis the comparative position of NPAS in Nationalised banks.
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Hypothesis of the study

1. There is significant difference between Gross NPAs and Gross Advances ratios of
banks in respect of Non Performance Assets (H0).
2. There is significant difference between Net NPAs rations public sector banks in India
(H1).
Methodology
The study is descriptive in nature .It evaluate the NPA level in public sector banks for a period
between 2008-2013.By going through the path of objective set for the study ,the relevant
secondary data has been collected through various sources like, RBI website ,Trend and
progress in banking various issues. Collected data has been tabulated and analyzed by using
various ratio techniques. The study also examines the trend of NPA in various sample banks.
The findings of the study are inconformity with the statistical tools applied as such Mean,
Standard Deviation, compound annual growth rate and one-way ANOVA correlation.
Analysis and Interpretation
Table-1: Gross NPAs of Different Years and ranks of individual banks.
200
8
Allahabad Bank
200
9
201
0
1.81
1.71
1.1
Andhra Bank
0.83
1.27
1.71
2.29
2.96
1.56
1.53
1.3
Canara Bank
2.67
1.14
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2.13
1.9
1.62
1.89
2.64
2.91
2.47
2.28
1.38
1.8
1.54
201
3
Mea
n
3.92
2.19
3.71
1.67
2.4
1.77
2.99
2.54
1.49
2.35
2.57
1.70
4.8
3.27
1.72
1.25
2.19
3.22
2.01
2.07
1.75
1.82
4.83
0.91
1.26
1.02
2.4
Dena Bank
IDBI Bank Limited
2.12
2.32
1.5
Corporation Bank
1.38
1.47
3.2
Central Bank of India
1.91
3.31
2.6
Bank of Maharashtra
1.80
1.64
1.7
Bank of India
201
2
0.86
1.8
Bank of Baroda
201
1
1.86
1.67
1.79
2.57
SD
0.8
5
1.1
1
0.3
7
0.6
8
0.4
9
0.4
5
1.2
8
0.3
0
0.2
8
0.7
CGAR
11.87
%
22.46
%
Ran
k
9
4
4.91%
9.87%
15
-8.86%
12.03
%
12
6.99%
19
2.31%
-1.51%
9.19%
7
8
Page 30
1.2
Indian Bank
0.89
2.54
of
0.65
1.77
1.93
2.21
1.96
2.85
1.95
3.15
2.65
2.75
3.31
3.73
2.37
3.16
2.51
3.41
2.56
2.93
3.21
1.6
Vijaya Bank
1.79
2.25
2.7
United Bank of India
1.65
2.15
2.2
Union Bank of India
0.99
2.43
UCO Bank
3.17
1.71
2.7
Syndicate Bank
1.98
0.63
2.7
Punjab National Bank
2.79
1.74
0.7
Punjab and Sind Bank
2.71
4.71
2.3
1.53
1.94
0.76
1.6
Indian Overseas Bank

Oriental
Bank
Commerce
0.99
2.37
3.33
1.52
4.02
3.06
3.21
2.32
2.96
1.26
4.27
2.56
1.99
2.41
5.42
3.30
2.98
2.49
4.25
3.15
2.17
2.26
0
0.9
8
1.1
2
0.7
2
0.9
2
1.0
2
0.3
6
1.2
1
0.4
7
0.6
3
0.4
7
2015
18.54
%
16.60
%
3
17
5.71%
27.16
%
11
7.94%
16
-4.96%
10.36
%
13
5.19%
14
7.85%
18
5.21%
10
20
Table 1 shows the gross NPA ratio of nationalised banks for last six years with necessary
statistics like mean, growth rate of NPAS via CAGR. From the table-1, it is seen that gross
NPA of nationalised banks is in the upward trend generally in all the banks with varying growth
except same banks like Bank of Baroda, Dena Bank, and Syndicate Bank. The compound
annual growth rate of banks under study is in the range of 8.86 to 18.54 and banks are having
value of compound annual growth rate of gross NPAS during this range. As per the mean
which is representative of a group of data, banks are ranked in ascending order. The reason for
ranking them in ascending order is from the interpretation of NPA that better the performance,
lower the ratio and vice versa. From the above table it is found that Central Bank of India is
ranked first as it was able to manage lowest means GNPA ratio of 1.25 percent, followed by
Punjab and Sind Bank at second position with mean GNPA ratio of 1.26 percent and third rank
achieve by Indian bank. Central Bank of India and Uco Bank got lowest rank of 19 and 20 with
a mean ratio of 3.27 and 3.30 percent respectively.
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FIG. 1
Figure-1 portrays the GNPA ratio of all the banks for a six year period and break of individual
bar shows the annual gross NPA ratios for a six year period. It is seen from the diagram that
some banks are having high gross NPA ratio from year to year while others have kept it under
controlled conditions. From the figure-1, it is depicted that Punjab and Sind bank, Indian bank,
corporation bank and Andhra bank have kept strict control on their NPAS and their total NPA
for the six year period is lowest relative to others. The bars of central bank, Indian overseas bank,
UCO bank, united bank are having highest level of bars which shows their higher level of
NPAs relative to other banks.
Table-2: Net NPAs of Different Years and ranks of individual banks.
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
IDBI Bank Limited
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2008
0.8
0.15
0.47
0.52
0.87
0.84
1.45
0.32
0.94
1.3
2009
0.72
0.18
0.31
0.44
0.79
1.09
1.24
0.29
1.09
0.92
2010
0.66
0.17
0.34
1.31
1.64
1.06
0.69
0.31
1.21
1.02
2011
0.79
0.38
0.35
0.91
1.32
1.1
0.65
0.46
1.22
1.06
2012
0.98
0.91
0.54
1.47
0.84
1.46
3.09
0.87
1.01
1.61
2013
3.19
2.45
1.28
2.06
0.52
2.18
2.9
1.19
1.39
1.58
Mean
1.19
0.71
0.55
1.12
1.00
1.29
1.67
0.57
1.14
1.25
SD
0.99
0.90
0.37
0.62
0.41
0.48
1.07
0.37
0.16
0.30
CAGR rank
25.93% 12
59.29% 3
18.17% 1
25.79% 10
-8.22% 8
17.23% 15
12.25% 18
24.47% 2
6.74%
11
3.30%
14
Page 32

Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
0.24
0.6
0.99
0.37
0.64
0.97
1.98
0.17
1.1
0.57
0.18
1.33
0.65
0.32
0.17
0.77
1.18
0.34
1.48
0.82
0.23
2.52
0.87
0.36
0.53
1.07
1.17
0.81
1.84
1.4
0.53
1.19
0.98
0.56
0.85
0.97
1.84
1.19
1.42
1.52
1.33
1.35
2.21
1.19
1.52
0.96
1.96
1.7
1.72
1.72
2.26
2.5
2.27
2.16
2.35
0.76
3.17
1.61
2.87
1.3
0.80
1.58
1.33
0.83
1.01
0.92
1.88
0.97
1.74
1.22
0.84
0.77
0.72
0.73
0.79
0.12
0.73
0.64
0.61
0.44
2015
45.32%
26.85%
14.83%
34.19%
24.21%
-3.98%
8.16%
45.46%
17.33%
14.73%
4
17
16
5
9
6
20
7
19
13
Source: Department of Banking Supervision, RBI

Table 2 displays the Net Non Performing Assets ratio of nationalised banks. This is the actual
burden on the shoulders of bank and calculated by deducting necessary provisions from the
gross nonperforming assets of bank. From the analysis of table-2, it is inferred that Net NPA of
nationalised banks is close vigilance and control in most of the banks by maintaining sufficient
level and provisions to counter balance for the quality of assets. The CAGR is varying in much
range compared to GNPA of nationalised banks. The Bank of Maharashtra is having lowest
CAGR of -8.22 and union bank having highest CAGR of 59.29 percent. The ranking of banks is
done on the basis of mean for last six years and ranking is done in ascending order i,e lower the
average better the rank, Bank of Baroda , corporation, Andhra bank got first second and third
rank respectively with their lowest mean for six years and united bank of India and UCO bank
19th and 20th rank respectively.
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Graph-2 shows the annual ratios of net NPAs for each nationalised bank and height of bars
determine level of NNPAs ain respect of six years .Division of bars determine annual level of
NPPA ratio. Andhra Bank, Bank of Baroda Corporation Bank Indian Bank and Punjab and Sind
bank are positive in terms of Net NPA ratio .There level is minimum and rest having higher ratio
with varying level of bars .UCO banks displayed bar length is maximum.
Table-3
RANKS
AS RANKS
AS AVERAGE
OVERALL
BANK/RANK
PER GNPAS
PER NNPAS
RANK
9
12
10.5
6
Allahabad Bank
3.5
3.5
15
10
12.5
10
15
10
18
18.5
12
1.5
11
14
11
3.5
17
17
11
16
13.5
10
3.5
12.5
9.5
14
20
20
13
Andhra Bank
Bank of Baroda
Bank of India
Bank
Maharashtra
of 12
5
Canara Bank
Central Bank of 19
India
1
Corporation Bank
7
Dena Bank
IDBI
Bank 8
Limited
3
Indian Bank
Indian
Overseas 17
Bank
Oriental Bank of 11
Commerce
Punjab and Sind 2
Bank
Punjab
National 16
Bank
13
Syndicate Bank
20
UCO Bank
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Union Bank
India
United Bank
India
of 14
10.5
of 18
19
18.5
12
10
13
11.5
Vijaya Bank
2015
Table 3 shows the composite rank of each bank, this is arrived by averaging the ranks of banks
as per GNPA and NNPA. Average performance will determine the real performance in the
management of nonperforming assets. So final ranks assigned to banks is based on the average of
earlier two ranks. It can be seen from the table that Corporation bank has got first rank followed
by Punjab and Sind, Andhra Bank, Bank of Baroda, Indian Bank at second rank and Dena bank
at third rank. In the management of nonperforming assets some banks have got the same rank
which is clearly shown in the table, four banks have got second rank, two banks have got 5th
rank, two banks have got 6th rank, two banks have got 9th rank and another two banks have got
12th rank. These banks are at the same performance level in the management of nonperforming
assets.
Table -4
ANOVA
GNPA
Source of Variation
SS
df
MS
Between Groups
Within Groups
28.14337
77.79716
5
114
5.628674
0.682431
8.247972
Total
105.9405
119
Table value
at 5 level of
significance
F(5,114)
2.29
The table 4 shows that calculated F value of 8.247972 is which is very much higher than table
value or critical value of 2.29 at 5 % level of significance with degrees of freedom (v1=5 and
v2=114) and hence our analysis supports our hypothesis that there is significant difference of
gross NPA ratios of nationalised banks. This shows that nationalised banks are having different
level of Gross NPAs and which shows their efficiency in management of gross NPAs, and
quality of their assets.
Table -5
ANOVA
NNPA
Source of Variation
ISSN 2230-9756
SS
df
MS
Table value at
Page 35
Between Groups
Within Groups
24.0491
34.908
5
114
Total
58.95709
119
4.80982
0.30621
15.70756
2015
5 level of
significance
F(5,114)
2.29
The table no 5 shows the ANOVA test of Net NPA to Net Advances of Nationalised banks. It is
seen from the table that calculated F statistics value of 15.70756 is higher than table value of
2.29 at 5 % level of significance. Results of our ANOVA analysis support our hypothesis that
there is significant difference between NNPA of nationalised banks, which shows their varied
performance of asset management.
Limitation of the study
1. Only nationalized banks are chosen for the purpose of the study.
2. Study is based on the availability of data.
Conclusion
The management of nonperforming assets is a daunting task for every bank in the banking
industry. The very important reason and necessity for management of NPA is due to their multi
dimensional affect on the operations, performance and position of bank. Results of study through
light on the level of nonperforming assets of different nationalised banks and
relation between different banks in the level of nonperforming assets . It is found that level of
nonperforming asset both gross and net is on an average in upward trend all the nationalised
banks but the growth rate is different. Banks got different ranks on the basis of mean and final
ranking was done on the basis of average gross NPA rank and net NPA rank. Corporation bank
got first rank among all the twenty and banks, From the ANOVA test it is was deduced that there
is significant difference between gross and net NPA of nationalised banks, this portrays their
efficiency in the management of NPAs The non performing asset is a major problem and hurdle
faced by banking industry. Wilful defaults, improper processing of loan proposals, poor
monitoring and so on are the causes for accounts for becoming NPAs. NPAs affect the position
as well as performance in several ways such as interest income, profits, and provisions against
NPAs and so on. Hence steps should be taken to cure this problem at earliest and in an efficient
manner
References
1. Bhavani Prasad, G. and Veena, V.D., 2011, NPAS in Indian banking sector-trends and
issues, Journal of Banking Financial Services and Insurance Research, Volume No. 1,
Issue 9, 2011, Pp 67-84.
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2. He, Dong, 2002, Resolving Non-performing Assets of the Indian Banking System
International Monetary Fund, September 2002, online at http://mpra.ub.unimuenchen.de
/9758/ MPRA Paper No. 9758, posted 28. July 2008.
3. Muniappan, G. P., 2002, ''The NPA Overhang - Magnitude, Solutions, Legal Reforms"
address at CII Banking Summit 2002, April 1, Mumbai, available through internet at
www.rb.org.in.
4. Prashanth k Reddy 2002, A comparative study of non Performing Assets in India in the
global context similarities and dissimilarities, remedial measures, CYTL paper, Indian
Institute of Management, Ahmadabad.
5. Ranjan, R. & Dhal S., 2003, Non-Performing Loans and Terms of Credit of Public Sector
Banks in India: An Empirical Assessment, Occasional Papers, Reserve Bank of India
Publication, Mumbai, winter, Vol. 24, No. 3, Pp. 81-121.
6. Ramu, N, 2009, Dimensions of Non-performing Assets in Urban Cooperative Banks in
Tamil Nadu, Global Business Review, July/December 2009 vol. 10 no. 2 Pp 279-297.
7. Banerjee, B. and Dan, A.K. (2006), Management of Non-performing Advances in the
Public Sector Banks in India, New Trends in Corporate Reporting (Edited Book), RBSA
Publishers, Jaipur, pp. 115-137.
8. Gupta, S. and Kumar, S. (2004), Dimensions and Prospectus of Non-performing Assets:
Challenges Before the Banking Sector Reforms in the New Millennium, Edited Book
Banking in the New Millennium, pp. 279-291.
9. Krishnamurthi, C.V. (2000), Non-performing Assets- Banks and Financial Institutions:
NPAs Plaguing National Economy, Southern Economist, Vol. 38, no. 5, July, 2000, pp. 1920.
10. Chaudhary, S., & Singh, S. (2012). Impact of Reforms on the Asset Quality in Indian
Banking, International Journal of Multidisciplinary Research Vol.2 (1).13-31.
11. http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/APB30091213F.pdf
12. http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0STR191113FL.pdf
13. http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/701T_STF181113.pdf
14. http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/B07_ST191113F.pdf
15. http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Statistical%20Tables%20Relating%20to
%20Banks%20in%20India
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TO STUDY THE EMPLOYEE RETENTION BY MOTIVATIONAL &

INSPIRATIONAL STRATEGIES
* Swati Bansal, Assistant Professor , Sharda University, swati.bansal@sharda.ac.in,
,GreaterNoida
ABSTRACT
Employee retention is a vital ongoing process in which the organization retains the
employees for the maximum period of time or until the completion of the work, as it is a
lifelong employment relationship between employer and employee. Employee motivation
theories and offers an explanation of how employee motivation affects employee retention
within organizations. The outcome of the study is expected to help the employees of these
Organizations in minimizing the attrition rate by developing effective retention strategies
specific to their Organization.
Keywords Employee Retention, Retention Strategies, attrition rate, motivation.
Introduction
Today, changes in technology, global finances, trade agreements, and the like are directly
affecting employee/employer relationships. Until recently, trustworthiness was the
cornerstone of that relationship. The loss of talented employees may be very detrimental to
the companys future success. Outstanding employees may leave an organization because
they become highly dissatisfied, under paid or unmotivated (Coff 1996), and while trying to
retain employees within the organization they may present other challenges as well. They
may demand higher wages, not comply with productive co-workers.
Every organization invests time and money to prepare a new joiner, make him a corporate
organized material and bring him at par with the existing employees. The organization is
completely at loss when the employees leave their job once they are fully trained. Employee
retention takes into account the various measures taken so that an individual stays in an
organization for the maximum period of time. During the 1990s, job seekers had a dizzying
array of choices when they searched for work. It was a difficult task for employers to keep
employees. Losing employees always meant losing knowledge, capital, skills, and
experience. Losing knowledge was a major concern to organization. If an organization lost an
employee with a great amount of knowledge, it essentially lost revenue that the employee
would have generated.
According to the American Management Association, the biggest cost on turnover is that of
replacing an employee who leaves. This cost is calculated conservatively at 30% of an
employees annual salary and for those employees whose skills are in high demand, the cost
ISSN 2230-9756
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2015
can rise to two-thirds of their annual salary (Dibble, 1999)1. However, other studies have
found the replacement costs of lost talent to be between 70% and 200% of the lost
employees annual salary (Kaye & Jordan-Evans, 1999, p.29). Increasing aggressive
recruitment and global demands have made retaining the scarce skills more difficult. The
main shortcoming is not only losing key members, but the lost productivity and replacement
cost. Very few institutions can afford to employ, train and allow their most valued and
talented employees to leave, when it is difficult to find better replacements.
If an employer lost an employee with a great amount of experience, it would take lots of time
and money to retain a new employee for positive production. Experience is an intangible that
is relied up heavily. Every workers carries with him or her at least three basics types of
experience. Every worker possesses a certain amount of industry, company and position
specific experiences. Employees leave for a variety of reasons including poor supervision,
unchallenging position, limited advancement opportunities, lack of recognition ,limited
control over work, perceived pay in equity and perception of more favourable opportunities
in other companies. High employee turnover is one greatest causes of declining productivity
and decreased morale in corporate. While morale decreases, recruiting and training cost
increases and an organization can find itself in a vicious cycle.
A good employer should know how to attract and retain his employees (Qadria Alkandari,
2009)2. There might be many other strategies to keep the employees comfortable in the
present job but motivation strategies boost the employees on day to day basis. Contrary to
modern belief, monetary compensation is not the highest employee motivator. According to
the Harvard Management Update (June, 1988) nine of ten managers think people stay or go
because of money. But, Kaye and Evans (2000)3 conclude that money and perks matter, but
employees are interested in challenging and meaningful work, good bosses, and opportunities
for learning and development
Thus, the present study aimed to enhance our understanding and improve the shortage of
literature by focus on the state of Kuwait to explore the main private sector workforce
retention factors that lead to their existing in their work place.
Employee Retention
Employee retention is an important ongoing process in which the organization retains the
employees for the maximum period of time or until the completion of the project. It is a
continuing employment relationship. It refers to the various policies and practices which let
the employees stick to an organization for a longer period of time. Employees can be retained
and satisfied within those organizations which keep on learning that how to keep their
employees satisfaction at highest level.
1
Dibble, S. (1999). Keeping Your Valuable Employees: Retention Strategies for Your Organizations Most Important
Resource.New York: John Wiley & Sons
2
Qadria Alkandari (2009) Employees retention in private sector an exploratory study in the State Of Kuwait.
Project paper submitted in partial fulfillment of the requirement for the degree of Master of Business
Administration, Open University Malaysia.
3
Beverly Kaye and Sharon Jordan- Evans (2000) Retention:Tag, Youre It!. Training and Development, April,
pp: 29-34
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Employee retention in relation to customer retention (Jamal & Adelowore, 2008; Yavas, et
al.., 2003) and quality service (Redman & Mathews, 1998) and how training, recruitment and
development reduces turnover rate.
Literature Review
Bhatnagar, Jyotsna (2008), reveals that a good level of engagement may lead to high
retention and grooming of future leaders for the organization.
Sunil Ramlall (2003) in his study on employee retention suggested that lack of challenge and
opportunity, lack of career advancement opportunities, lack of recognition, inadequate
emphasis on teamwork, not having the opportunity for a flexible work schedule are among
the most common reasons for employees leaving an organisation.
Konana and Balasubramanian, (2001), A knowledge economy is one that relies intensively on
human skills and creativity, the utilization of human intellectual capital supported by lifelong learning and adaptation, the creative exploitation of existing knowledge, and extensive
creation of new knowledge through research and development.
Kiran Karnik, (2006) Many researches indicate globalization, customization of services,
upgrading quality, improving employability, developing soft skills, attracting and retaining
talent, generating motivation, increasing efficiency, and developing creativity are the many
challenges faced by the Indian IT industry. Human resources are not only the drivers and
principal value-creators of the output of this industry; but they are also the intellectual capital
or the infrastructure investment. Therefore, attracting, training, retaining and motivating
employees are the critical success-determinants.
Mohali and Panchkula,2010 examines the phenomenon of Employee Retention in the ITeS
sector in the Tri-City of Chandigarh,in order to develop appropriate strategies, which can
help the organizations in this sector to retain their valuable talent. The major objectives of the
research are to study: employee retention strategies followed in the ITeS industry in the Tricity of Chandigarh, Mohali and Panchkula; significance of select HR practices in the
attainment of job satisfaction amongst the employees of the industry; extent of employee
attrition prevalent; significance of individual, organizational and industry related factors in
determining employee retention; correlation between job satisfaction and employee retention;
prevalence of Talent Management System and identify different strategies adopted to reduce
the monotony of work for the executive positions.
Retention has been viewed as an obligation to continue to do business or exchange with a
particular company on an ongoing basis (Zineldin, 2000,p.28). A more detailed and recent
definition for the concept of retention is customer liking, identification, commitment, trust,
readiness to recommend, and repurchase intentions, with the first four being emotionalcognitive retention constructs, and the last two being behavioral intentions (Stauss et al.,
2001).
Carney (1998) believes that the key to employee retention is quit e simple:
communicate,communicate, and communicate. Communication with the employees must
begin early on in the relationship. He believes that the imprinting period of a new employee
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is probably less than two weeks. Employers must engage the employee early on by sharing
how important the job they do is.
Lynn (1997) follows this up by stating that early on an atmosphere of fairness and openness
must be created by clearly laying out company policies.
Taylor and Consenza (1997) indicate that it is important to communicate the values of the
organization to its employees in order to increase their level of consent, participation, and
motivation.
Hammer(2000);Marini(2000);Denton (2000) examined that employees who are satisfied with
their jobs are more dedicated to doing a good job and taking care of customers that sustain
the operation. Hence the job satisfaction is something that working people seek and a key
element of employee retention.Nussler and Eskildsen (2000) suggested that employers are
fighting to get talented employees in order to maintain a prosperous business
Motivation: as a Key Factor to retain employees
The reasons for the employees for leaving the organization may be either personal or
professional. Employees do not leave an organization without any important reason. The
most common reasons are Job and person does not match, no growth opportunities, lack of
appreciation, lack of trust and no support and coordination among co-workers, seniors and
management, Stress from overload and work life imbalance, compensation strategies not
implemented properly, when there is a new job offer, etc. Employee motivation is one of the
important factors that can help the employer to improve employee and organizational
performance. Through employee motivation, the employer can encourage the employees by
enhancing their skills and also by improving their morale. First step to motivate the
employees to identify the factors which can influence employees to stay back in an
organization. Once factors are identified, it is easy to implement those factors to reduce the
attrition rate.
Motive for attrition
The motives for the employees leaving the organization have three aspects professional,
personal or other aspect. It involves slowly reducing productivity and staff through a constant
barrage of poor treatment or unfavourable working conditions. It can also involve the
reduction of employees through retirement or the elimination of a position. The other reasons
are running the relationship of employee and employer, changes in the life cycle not managed
by employee, compensation strategies not implemented properly, etc.
Employee motivation is one of the key factors that can help the employer to improve the
employee and organizational performance. Motivation theories has been reviewed as one of
the final results of our study shows intrinsic motivation factors as a significant dimension of
employee retention in the organization. Theories of motivation were intricately studied to
understand the concept of motivation as an important predictor of employee turnover.
Motivation theories have been broadly classified into need based theories and process based
theories. These theories form the platform of all work on motivation. Here these theories have
been discussed to understand the philosophy of motivation so as to incorporate the same in
the study of employee retention. Johnson and Gill (1993) describe motivation in work
organizations as the processes by which people are enabled to and induced to choose to
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behave in particular ways. Motivation is therefore coupled with a search for the ways by
which members job performance and productivity may be enhanced or maintain.
Frederick Taylor's theory of motivation states that most workers are motivated solely by the
pay they receive for the work they do. He postulated that most workers do not enjoy the work
they do and only perform when given the direct reward of monetary payment. His ideas were
adopted by Henry Ford and other industrialists who paid their factory workers according to
the number of items produced. This theory lost favour as workers became frustrated and
production was frequently halted due to strikes by disgruntled employees.
Elton Mayo's theory of motivation examined the social needs of the worker. He believed that
pay alone was not sufficient to motivate employees to put forth their best effort. He believed
that the social needs of the workers should be taken into consideration. He recommended
employers treat their workers in a caring and humane fashion that demonstrates an interest in
the individual in order to have them produce their best work.
Abraham Maslow and Frederick Irving Herzberg believed that psychological forces drive
human behaviour. Their theory postulated a graduated scale of human needs ranging from
basic, physical ones such as hunger and thirst to higher level ones such as the need to be
loved and the need for self-fulfilment. They believed employers would see better results from
workers if they recognized the various needs of individual workers and if they varied the
rewards offered to them
Abraham Maslow and Frederick Irving Herzberg believed that psychological forces drive
human behaviour. Their theory postulated a graduated scale of human needs ranging from
basic, physical ones such as hunger and thirst to higher level ones such as the need to be
loved and the need for self-fulfilment. They believed employers would see better results from
workers if they recognized the various needs of individual workers and if they varied the
rewards offered to them
J. Stacy Adams' equity theory states that employees adjust their performance and output
based on whether they perceive the results to be equitable. For example, if one employee
believes that he will be rewarded less than his peers for the same amount of effort, he likely
will reduce his job performance. The same activity might occur if the employee feels that his
employer is rewarding him too much relative to his peers. Managers can apply this theory by
trying to make pay structures equitable for the same amount of work.
Apart from the different theories of Motivation given by the different psychologist there are
other motivational strategies by which the employer can motivate employee and retain them.
Employee retention involves various steps taken to retain an employee who wishes to move
on. An employee must find his job challenging and as per his interest to excel at work and
stay with the organization for a longer period of time. The management plays an important
role in retaining the talented employees who are familiar with the working conditions of the
organization and thus perform better than the employees who just come and go.
The superiors should send motivational emails to their team once in a week. Display
inspirational posters, photographs on the notice board for the employees to read and stay
motivated. It is natural for an individual to feel low sometimes, but the superiors must ensure
to boost their morale and bring them back on track. No individual should be neglected or
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criticized. This demotivates them. If they fail to perform once, motivate them and give them
another opportunity.
Organize various activities and events at the workplace. Ask each one to take charge of
something or the other. Engage the employees in productive tasks necessary for their overall
development. The management must show its care and concern for all the staff members. The
employees must feel secure at the workplace for them to stay motivated. Whenever any
company policy is to be formulated; the opinion of each and every employee should be taken
into consideration. Invite all of them on a common platform and ask for their suggestions as
well. Freedom of expression is must. Every employee must have a say in the organizations
guidelines as they are made only to benefit them.
Incentives, perks, cash prizes are a good way to motivate the employees. The employees who
have performed well consistently should be felicitated in front of all the staff members as
well as the management. Give them trophies or badges to flaunt. Ask the audience to give a
loud applause to the employees who have performed well. This is a good way to motivate the
employees for them to remain happy and work with dedication for a longer duration. Others
who have not performed up to the mark also gear up for future. The names of the top
performers must be put on the companys main notice board or bulletin board for everyone to
see.Appraisals are also an important way to motivate the employees. The salaries of the
performers must be appraised at regular intervals- an effective way to retain the employees.
Career growth is an important way to retain the talented employees. Give them power to take
some decisions on their own but the management must have a close watch on them so that
they do not misuse their power.
Without motivation, it is not fair to expect the best out of the employees. No individual likes
to leave an organization where he is being treated well.
References
Ananthan B R, Sudheendra Rao L N, Multy-Tierview of employee retention strategies

in Indian and Global Companies-A Critical appraisal,International Journal of research
in Commerce and Management, VOLUME NO. 2 (2011), ISSUE NO. 9
(SEPTEMBER)
Wadhwa Pooja,Koul Saroj,Critical Factors Affecting Retention: Case of the Indian IT
Industry, Ninth AIMS International Conference on Management, January 1-4, 2012
K. Sandhya1 and D. Pradeep Kumar,Employee retention by motivation, Indian
Journal of Science and Technology, Vol. 4 No. 12 (Dec 2011)
Netswera FG , Rankhumise EM , Mavundla TR,Employee Retention Factors for
South African higher educational institutions A case study, SA Journal of Human
Resource Management, 2005, 3 (2), 36-40
Sinha Chandranshu, Sinha Ruchi Factors Affecting Employee Retention: A
Comparative Analysis of two Organizations from Heavy Engineering Industry,
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European Journal of Business and Management ,ISSN 2222-1905 (Paper) ISSN 22222839 (Online),Vol 4, No.3, 2012
Sharma Deep Gagan, Mahendru Mandeep, Singh Sanjeet,A study of employee
retention in ITeS Industry:A case of north India
Rehman M.Safdar ,Employee Turnover and Retention Strategies:An Empirical Study
of Public Sector Organizations of Pakistan,Global journal of management and
business research Volume 12 Issue 1 Version 1.0 January 20 12
Sohail.Dr. Nadeem, Muneer Aysha, Tanveer Yasir, Tariq Hussain,Loosing your best
talent :Employee retention the dilemma of textile industry A case of textile
sector,Interdisciplinary Journal of contemporary research in business,Institute of
Interdisciplinary Business Research ,December 2011VOL 3, NO 8
Gayathri.R,G.Sivaraman,R.Kamalambal,Employee retention strategies in BPOS A
EmpiricalInvestigation, ,Interdisciplinary Journal of contemporary research in
business,April 2012 VOL 3, NO 12
Eric Ng Chee Hong, Kumar Ramesh ,An Effectiveness of Human Resource
Management Practices on Employee Retention in Institute of Higher learning: - A
Regression Analysis, International Journal of Business Research and Management
(IJBRM), Volume (3) : Issue (2) : 2012 60
Ananthan B R, Sudheendra Rao L N, Multy-Tierview of employee retention strategies
in Indian and Global Companies-A Critical appraisal,International Journal of research
in Commerce and Management, VOLUME NO. 2 (2011), ISSUE NO. 9
(SEPTEMBER)
Eric Ng Chee Hong, Kumar Ramesh ,An Effectiveness of Human Resource
Management Practices on Employee Retention in Institute of Higher learning: - A
Regression Analysis, International Journal of Business Research and Management
(IJBRM), Volume (3) : Issue (2) : 2012 60
Sohail.Dr. Nadeem, Muneer Aysha, Tanveer Yasir, Tariq Hussain,Loosing your best
talent :Employee retention the dilemma of textile industry A case of textile
sector,Interdisciplinary Journal of contemporary research in business,Institute of
Interdisciplinary Business Research ,December 2011VOL 3, NO 8
Gayathri.R,G.Sivaraman,R.Kamalambal,Employee retention strategies in BPOS A
EmpiricalInvestigation, ,Interdisciplinary Journal of contemporary research in
business,April 2012 VOL 3, NO 12
Rehman M.Safdar ,Employee Turnover and Retention Strategies:An Empirical Study
of Public Sector Organizations of Pakistan,Global journal of management and
business research Volume 12 Issue 1 Version 1.0 January 20 12
Netswera FG , Rankhumise EM , Mavundla TR,Employee Retention Factors for
South African higher educational institutions A case study, SA Journal of Human
Resource Management, 2005, 3 (2), 36-40
K. Sandhya1 and D. Pradeep Kumar,Employee retention by motivation, Indian
Journal of Science and Technology, Vol. 4 No. 12 (Dec 2011)
http://www.citehr.com/35516-human-resources-changing-role-hr-professionals.html
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TO STUDY THE LEVEL OF CUSTOMER SATISFACTION TOWARDS

BAJAJ ALLIANZ.
*Santosh Kumar Yadav
Assistant Professor & Head , Faculty of Commerce & Management ,Indira Gandhi
Technological and Medical Sciences University ,Ziro, Arunachal Pradesh email:santosh217976yadav@gmail.com
**Dr Anshul Sharma

Head of Department, Gniot College of Management, Greater Noida
Email id :aanshul1232@gmail.com
Abstract
The objective of the project was to do customer Satisfaction Towards Bajaj Allianz for Life Insurance for that
we have to understand the customer needs, Income, constraints, response and emotions so that they can
contribute their time for becoming Life advisors for the company. The objective of this study was to analyze
consumer satisfaction of mechanical splicing in Patna city with respect to the performance, sales effort and
sales service. As the company was new and it was yet to be marketed to a large number of customers, it was
essential to know the feedback of customers in order to formulate effective marketing and sales strategies in
future and improve the quality of service to achieve better consumer satisfaction. The second part of the study
that consists of 30 days contains scanning the questionnaire and taking appointments. After that usually
meeting the persons and tell them about the company. Most important part is analyzing the information.
1. History of Insurance Industry

The industries, businesses and individuals are considerably by the services of insurance
organization.
I.
The oldest form of insurance (12th century) is marine insurance. After wards in 16th
century fire insurance is started in Germany.
II.
The first registered life office was Hand in Hand Society established in 1696.
III.
In India the first life insurance was started in the Bengal Presidency in 1818 knows as
oriental life insurance company.
IV.
Experiencing so many ups and downs the insurance business was found in changed
shapes.
V. There was major change in the insurance sector after globalization in 2001. The
private player in the insurance industry and ends the dominance of LIC.
VI.
The different MNC s company of foreign country enters in the insurance industry
with the joint venture with Indian companies. Today total 11 private life insurance
companies are working in insurance industry.
2.HISTORY
1912: the Indian Life Assurance Companies Act enacted as the first stature to regulate the life
insurance business.
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1928: the Indian Insurance Companies Act enacted to the government to collect statistical
information about both life and non life insurance businesses.
1938: Earlier legislation consolidated and amended to the insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245Indian and Foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with
a capital contribution of Rs. 5 core from the Government of India.
3.INSURANCE SECTOR REFORMS:
1) Structure
Government has stake in the insurance companies to be brought down to 50%.
2) Competition
Private companies with a minimum paid up capital of Rs. 1bn should be allowed to enter the
industry. No company should deal in both Life and General Insurance though a single entity.
Foreign companies may be allowed to enter the industry in collection with the domestic
companies. Postal Life Insurance is allowed to operate in the rural market. Only One State
Life Insurance Company should be allowed to operate in each state.
3) Regulatory Body
- The Insurance Act should be changed
- An Insurance Regulatory body should be set up
- Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4) Investments
Mandatory Investment of LIC Life Fund in government securities to be reduced from 75% to
50%.
5) Customer service
Bajaj Allianz should pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans. Computerization of
operations and updating of technology be carried out in the insurance industry. The
committee emphasized that in order to improve the customer services and increase the
coverage of the insurance; industry should be opened up to competition.
4. ENTRANCE OF PRIVATE PLAYERS IN INSURANCE SECTORS
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India still has low insurance penetration of 1.95 percent, 51st in the world. Despite the fact
that India boosts a saving rate of around 25 percent, less than 5 percent is spent on insurance.
The insurance landscape in India is undergoing major changes. Close to foreign competition
since nationalization in 1956, the life insurance industry had been protected from competitive
pressures. Now, with the reopening of the sector, several new players have entered the scene.
It protects the interests of the policyholders received and ensures orderly growth of the
insurance industry and for matters connected there thereto.
5. Profile of Bajaj Allianz Life Insurance Company
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance
Company and Bajaj Financial services. Allianz SE is a leading insurance conglomerate
globally and one of the largest asset managers in the world, managing assets worth over a
Trillion (Over INR. 55, 00,000Crores). Allianz SE has over 119 years of financial experience
and is present in over 70 countries around the world. At Bajaj Allianz Life Insurance,
customer delight is our guiding principle. Our business philosophy is to ensure excellent
insurance and investment solutions by offering customized products, supported by the best
technology.Bajaj Allianz General Insurance Co. is a joint business enterprise between Bajaj
Auto Ltd. and Allianz AG, the world's largest general Insurance Company. Bajaj Allianz is
spread in over 200 towns and cities making their presence felt across the length and breadth
of the country. The head office of Bajaj Allianz is at Pune. All the offices from Surat to
Siliguri and Jammu to Thiruvananthapuram are interconnected with the Head Office. Bajaj
Allianz team provides services to its customers by sharing all the anxieties with its customers
regarding their possessions. They ensure optimal coverage at lowest cost. Bajaj Allianz
provides various kinds of insurance like home insurance, motor insurance, health insurance,
asset insurance, travel insurance. They account for the safety of your possessions as their
own. Home is our most prized possession. It provides us shelter. We all want to make our
house safe and secure. But do you really feel that your home is as safe as we would like it to
be? Bajaj Allianz realizes your need to make your home secure and safe in reality as you
want it to be. The House- Holders' Insurance policy at Bajaj Allianz brings in front of you a
single policy covering various threat and emergencies faced by householders. It protects the
property and interests of the insured and his family members who permanently reside with
the insured. A householder's insurance policy protects all your domestic and electronic
appliances along with your flat of The Home Insurance at Bajaj Allianz features a very
flexible and competitive premium rates, flexible rate for accidents of the insured, up to 2lacs
worth jewelry need no valuation certificate and covers burglary and jewelry on a first come
basis.
5.1Benefits of Home Insurance coverage at Bajaj Allianz are
1. Varied needs addressed under the same policy

2. Saving on cost
3. Save on time while proposing
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4. Option of Customized cover

5. The advantages of choosing Bajaj Allianz are Complete coverage at reduced premium
Single Proposal form Full concentration on Client needs
6. Simple and quick documentation
7. Coverage of related items under respective sections
5.2 Customer Orientation

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our
efforts are directed towards understanding the culture, social environment and individual
insurance requirements - so that we can cater to all your varied needs.
Key Features
Guaranteed death benefit
Choice of 5 investment funds with flexible investment management: you can change
funds at any time.
Attractive investment alternative to fixed- interest securities.
Provision for full/partial withdrawals any time after three full years premiums are
paid.
Unmatched flexibility- to match your changing needs.
Benefits
Death Benefit
Cash withdrawal option
Key Features
Benefits
Guaranteed death benefit
Death Benefit
Whole life protection with only 10 or 15

years of contributions.
Guaranteed Survival Benefits

Maturity Benefit
Guaranteed survival Benefits that pays 3%

of the sum Assured every year after the
premium payments are over
Full withdrawals
Partial withdrawals
Provision for full and partial withdrawals
6. IRDA
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. It was formed by an act of Indian Parliament
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known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging
requirements. Mission of IRDA as stated in the act is "to protect the interests of the
policyholders, to regulate, promote and ensure orderly growth of the insurance industry and
for matters connected therewith or incidental thereto."
The law of India has following expectations from IRDA...
1. To protect the interest of and secure fair treatment to policyholders.
2. To bring about speedy and orderly growth of the insurance industry (including
annuity and superannuation payments), for the benefit of the common man, and to
provide long term funds for accelerating growth of the economy.
3. To set, promote, monitor and enforce high standards of integrity, financial soundness,
fair dealing and competence of those it regulates.
4. To ensure that insurance customers receive precise, clear and correct information
about products and services and make them aware of their responsibilities and duties
in this regard.
5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other
malpractices and put in place effective grievance redressal machinery.
6. To promote fairness, transparency and orderly conduct in financial markets dealing
with insurance and build a reliable management information system to enforce high
standards of financial soundness amongst market players.
7. To take action where such standards are inadequate or ineffectively enforced.
8. To bring about optimum amount of self-regulation in day to day working of the
industry consistent with the requirements of prudential regulation.
6.1 Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA
1. Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.
2. Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include,
3. issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
or cancel such registration;
4. protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
5. specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
6. specifying the code of conduct for surveyors and loss assessors;
7. promoting efficiency in the conduct of insurance business;
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8. promoting and regulating professional organizations connected with the insurance and
re-insurance business;
9. levying fees and other charges for carrying out the purposes of this Act;
10. calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries
and other organizations connected with the insurance business;
11. control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,
1938 (4 of 1938);
12. specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance
intermediaries;
13. regulating investment of funds by insurance companies;
14. regulating maintenance of margin of solvency;
15. adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
16. supervising the functioning of the Tariff Advisory Committee;
17. specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause (f);
18. specifying the percentage of life insurance business and general insurance business to
be undertaken by the insurer in the rural or social sector; and
19. exercising such other powers as may be prescribed from time to time,
6.2 Advisory committee
IRDA consists of a Chairman and some permanent as well as part time members. The
regulations, however, are enacted under the guidance of a statutory advisory committee. The
advisory committee consists of following individuals and ex-officio authorities:
Chairman: Hari Narayana is the current Chairman of IRDA.

Full-time Members: Currently, they are Mr. K K Srinivasan (Nonlife Member), Sri G
Prabhakara (Life Member), Dr. R Kannan (Member, Actuary) and Sri R.K. Nair
(Member, F & I). There is provision for a panel of other members and part time
members. IRDA formed a high powered Insurance Law Reforms Committee known as
KPN Committee with important insurance advisors like Mr. N Govardhan and Dr K C
Mishra as its members. There were also a few non-advisory committee members like Mr.
Liaquat Khan and Mr. T Viswanathan etc.Full force and utility of various institutions like
Advisory Committee and self-regulatory organizations are not yet realized as the
regulator seems to be in a long learning mode. Due to over delegations, Individual
incumbents decide the pace and extent of utilization of prudential and statutory bodies.
Research is limited to opinion seeking through legacy channels. Market waits for revision
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of insurance act and establishment meaningfully functioning regulatory organs devoid of

excess delegation and subjective localization of development agencies.
7. OBJECTIVE OF THE STUDY
1) To determine the present position and satisfaction of customer in Bajaj Allianz...

The main objective of the project was to analyze consumer satisfaction of Bajaj Allianz with
other services in Patna. And also present position of the company.
2) To determine the market share of different brands.

The second objective of the project was to determine the market share of different brands
available in the market. There was a tough competition for the brand in the market. Therefore
to get establish, company had to make its competitors analysis and need to determine where
do they stand.
3) Responses of customer.
Responses from them were collected through survey and for the questionnaire were prepared
for both of them.
4) Benefits derived by assessing consumer satisfaction are:
- Feedback to organization regarding product.
- Understanding customer s requirements.
- Providing superior service to customer.
- Strengthen the relationship with customers.
- Formulating sales strategies.
5) Identify pros and cons of the brand.
This was a fundamental objective of the whole research. Company wants to identify that
where does the brand lack. In other words, what are the brands so that it can rectify them in
order to establish the brand in the market.
6) Suggestions and recommendations.
The objective of the research was not only to find out the problem but also the identification
of solutions or suggestions of the problems.
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8. RESEARCH METHODOLOGY
Research is an art of scientific investigation through search for new facts in any branch of
knowledge. It is a moment from known to unknown. Research always starts with a question
or a problem. Its purpose is to find answers to questions through the application of the
scientific method.
It is a systematic and intensive study directed towards a more complete knowledge of the
subject studied.
As marketing does not address itself to basic or fundamental question, it does not qualify as
basic research. On the contrary, it tackles problems, which seem to have immediate
commercial potential. In view of the major consideration, marketing should be regarded as
applied Bajaj.
We may also say that marketing research is of both types problem solving and problem
oriented.
Marketing is as systematic and objectives study of the problems pertaining to the marketing
of the goods and services. It may be emphasized that it is not restricted to any particular area
of marketing, but is applied to all the phases and aspects.
9. METHOD OF DATA COLLECTION
1) Data to be collected.
Data includes facts and figures, which are required to be collected to achiever the objectives
of the project .In order to determine the present position and satisfaction of customer of Bajaj
Allianz Life Insurance Co.
a) Primary Data
The data that is being collected for the first time or to particularly fulfil the objectives of the
project is known as primary data.
These types of data were,
- The market share of Bajaj Allianz life Insurance co.
- The market share of other brands available in the market.
- Responses of consumer.
- Identifying pros and cons of the brand.
The above primary data were collected through responses of consumer was conducted
through questionnaires prepared for them.
b) Secondary Data
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Secondary data are that type of data, which are already assembled and need not to collected
from outside. These types of data were
i) Company Profile
ii) Product Profile
iii) Competitors Profile
The aforesaid data were collected through Internet and company s financial report.
2) Data Collection Method
For given project, the primary data, which needed to collect for the first time, were much
significant. This type of information gathered through Survey technique, which is the most
popular and effective technique for correct data collection. The survey was completed with
the use of questionnaires.
- Questionnaire for consumer.
3) Sampling
Sample is the small group taken under consideration from the total group.
This small group represents the total group. In the project the market research, which was ask
to be studied was Patna market but as it was possible to approach all the respondent s
customer of the city, hence a sample was selected which represents the whole city. The areas
selected for the sample are present further in the appendix. Sample size of customer list was
taken from Bajaj Allianz Life Insurance co. Ltd. customer data basic.
4) Data Evaluation
The data so collected were not simply accepted because it contained unnecessary information
and over or under emphasized facts. Therefore only relevant data were included in the report,
which helped in achieving the objectives of the project.
10. OBSERVATION & FINDINGS
OBSERVATIONS
Majority of the customer s belonged to age group of 25-35 years that is 19 consumers.
45 consumers think Life Insurance is essential for them.
135 respondents are investing in life insurance companies like Bajaj Allianz Life
Insurance, LIC, Max New York, HDFC, ICICI and SBI.
36 percentages of the total respondents invest in Bajaj Allianz Life Insurance for
getting high ROI.
Most of respondent s preferred Bajaj Flexi Plan.
37.5 percentage respondents expect bonus and other schemes from Bajaj Allianz Life
Insurance.
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20
15
2015
10
5
0
18-24
24-35
35-45
45-55
55-65
56 percentage respondents satisfied with services given by Bajaj Allianz Life

Insurance.
As per 28% of despondence Bajaj Allianz Life Insurance providers good tax benefits
to the Investors.
64% of respondents are willing to purchased policies from Bajaj Allianz Life
Insurance in future.
11. DATA INTERPRETATION AND ANALYSIS
CLASS(AGE)
NO.
OF
RESPONDENTS
18-24
24-35
19
35-45
16
45-55
55-65
ANALYSIS
Above diagram show five classes of different age groups. Here customer 19 customer blogs
to 25-35 age groups, 16 customers fall in the age group 35-45 years. Other 8 customer comes
are in the class 45-55 years the age group of 18-24 consists four customer reaming customer
is in age group 55-65 years. Here majority of customer belong to the group 25-35 years.
Q.1. Do you think is it essential to have Life Insurance?
a) YES
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b) NO
YES
NO
TOTAL
NO.OF
RESPONDENTS
45
50
% OF RESPONDENTS
90
10
100
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2015
100
80
60
40
Column1
20
0
YES NO
ANALYSIS
To this question 45 consumers reported YES and 5 consumers reported NO .
Q.2. Which are the companies you invested your money for Bajaj Allianz Life Insurance?
Companies
Bajaj Allianz
No. of
% of
Respondents
Respondents
50
37.04
Max New York Life 5

Insurance
3.70
SBI
3.70
HDFC Life Insurance
10
7.41
ICICI Prudential Life 25

Insurance
18.52
Kotak Mahindra Life 10

Insurance
7.41
LIC
22.22
30
Bajaj allianz
ICICI Prudential Life Insurance
Max New York Life Insurance
SBI
SBI
Bajaj allianz
HDFC Life Insurance

0
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10 20 30 40 50 60
ICICI Prudential Life Insurance
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2015
ANALYSIS
From the above figure we come to know that customer is also investing money in other life
insurance companies. The major player in insurance is LIC holding 22.22% of total sample.
The second major player ICICI is holding 18.52%. HDFC and are having equal share of
7.41% & the
Max New York & SBI are having 3.70%.and kotak Mahindra life insurance is holding
7.01%.
Q.3.Why did you choose Bajaj Allianz Life Insurance?
No of
% Of
Respondents
Respondents
ROI
18
36
Peer Pressure
15
30
Tax Benefit
10
20
Security /safety
24
Low Premium
10
TOTAL
50
100
ANALYSIS
The above diagram shows 36% of respondents choose because of good returns, 30% because
of peer pressure and remaining 24% opt. Because of tax benefit safety and 100premium
respectively.
Q.4.Which of the following plane is insured you?
Bajaj Allianz Flexi plan

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No o
% Of
Respondents
Respondents
25
40
Page 56
Bajaj Allianz Retirement 19

Plan
30
Bajaj
Allianz 3
Endowment Plan
Bajaj Allianz
Multiplier Plan
10
Capital 6
Child Advantage Plan
10
2015
15
30
20
10
0
Column1
Bajaj allianz Flexi Bajaj allianz

Bajaj allianz
plan
Retirement Plan Endowment Plan
Bajaj allianz Child Advantage

Capital
Plan
Multiplier Plan
Note.
Some of customer is having more than one plan total survey customers are 50.
ANALYSIS
From the total 63 respondents maximum i.e. 40% customers have opted for Flexi Plan,
whereas 30% have gore for Retirement plans and remaining 30% have customer are having
endowment, multiplier and child advantage respectively.
Q.5.What kind of services you expect from insurance provides?
No of
% Of
Respondents
Respondents
Easy access ability to Deposit Centre
20
31
Time to time premium collection
12
19
Provision in case of Dues
13
Bonus & other schemes
24
37
TOTAL
64
100
Note.Some of customer are expecting more than single service.
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2015
ANALYSIS
Out of total 50 respondents 37% like to have bonus and other service as a prime concern,
13% like to have provision in case of dues and remaining 31% & 12% respondents say. They
need time-to-time premium collection and easy accessibility to deposit center as a concern
before choosing insurance provider.
Q.6. How will you rate the services given by Bajaj Allianz Life Insurance Co. Ltd?
No of
% Of
Respondents
Respondents
Poor
Average
16
32
Good
28
56
Excellent
12
TOTAL
50
100
Poor
Average
Good
Excellent
ANALYSIS
Out of 50 respondents 57% have ratted Bajaj Allianz Life Insurance Co. Ltd. services as good
and 32% have ratted as average. And remaining 12% have ratted as Excellent.
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Q.7. Do have any suggestion for Bajaj Allianz Life Insurance Co. Ltd.?
YES
NO
YES
NO
TOTAL
No of Respondents
39
11
50
% Of Respondents
78
22
100
50
40
YES, 39
30
20
NO, 11
10
0
YES
NO
ANALYSIS
To these question 39 consumers reported YES and 11 consumers reported NO.
Q.8. In future, will you purchase policies from Bajaj Allianz Life Insurance Co. Ltd.?
a) YES
b) NO
YES
NO
TOTAL
No of Respondents
32
18
50
% Of Respondents
64
36
100
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2015
Column1
NO
NO, 18
YES
YES, 32
0
10
20
30
40
ANALYSIS
To these question 32 consumers reported YES and 18 consumers reported NO.
12. CONCLUSION
After conducting market research for Bajaj Allianz Life Insurance Company we came to
know different needs of consumers, their valuable suggestions, responses to the different
questions. With this information we can conclude that there is good market awareness about
Bajaj Allianz in the market. Customer satisfaction level of most respondents is higher for
Bajaj Allianz Life Insurance Company, which is provided by survey. Higher satisfaction level
of Bajaj Allianz life insurance company was monthly due to provides good tax benefit for
the consumers also ROI, security etc.
Bajaj Allianz Flex s plan is the best-sold plan in market by Bajaj Allianz Life Insurance. This
conveys that the customer s are switching to retirement plan.
13. SUGGESTION
According to our survey there is a possibility for more of advertising in newspaper, local
newspaper, electronic media; pamphlets should be targeted for deeper penetration.
1. BANNERS: Bajaj Advertised the most in banners out of all insurance company,
people share this believe that a life insurance where govt. in having an interest is
corporative suffer than other insurance company. As it is Bajaj Life Insurance banner
presentation is 45% & it can be increased even more.
2. Hording: Hording of Bajaj Life Insurance is small in number. Company required
being increase on the numbers of hording.
3. Media Communication:
Bajaj has presence in some television channel thats star
sports and other but as per TRP the channel watched by most of the people AAJ
TAK. The TRP rate of sports channel in less than the TRP of News Channel. So
that makes sense to advertise of Bajaj has given the more than AAJ TAK rather sports
channel.
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14. References
Marketing Research
Marketing Management
Research Methodology
15. Weblography
Text and Cases

Philip Kotler
Deepak Bhattacharya
www.bajajallianz.com
www.allianzbajaj.co.in
www.allianz.com
16.QUESTIONNAIRE
1. Personal detail
Name:
Age
Phone No.
Email.
Office Address: - Residential Address: 2. Do you think is it essential to have Bajaj Allianz Life Insurance?
a) YES
b) NO
3. Which are the companies you invested your money Bajaj Allianz for Life Insurance?
a) Kotak Mahindra Life Insurance
b) LIC
c) Bajaj Allianz
d) ) Max New York Life Insurance
e) HDFC Life Insurance
f) ICICI Prudential Life Insurance
g) SBI
4. Why did you choose Bajaj Allianz Life Insurance Co.Ltd.?
a) ROI
b) Peer Pressure
c) Tax Benefit
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2015
d) Security /safety
e) Low Premium
5. Which of the following planed by which you are insured?
a) Bajaj Allianz Flexi plan
b) Bajaj Allianz retirement Plan
c) Bajaj Allianz Endowment Plan
d) Bajaj Allianz Capital Multiplier Plan
e) Bajaj Allianz Child Advantage Plan
6. What kind of services you expect from insurance provides
a) Easy access ability to Deposit Centre
b) Time to time premium collection
c) Provision in case of Dues
d) Bonus & other schemes
7. How will you rate the services given by Bajaj Allianz Life Insurance Co.Ltd?
a) Poor
b) Average
c) Good
d) Excellent
8. What difference you find between Bajaj Allianz & your previous Insurance provider.
a) Good Returns (HIGHEST)
b) Effective Service/Liquidity
c) Tax Planning
d) Security/ Safety Benefit & Protection on your Capital
9. Do have any suggestion for Bajaj Allianz Life Insurance Co. Ltd.
a)YES
b)NO
10. In future, will you purchase policies from Bajaj Allianz Life Insurance Co. Ltd?
a)YES
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b)NO
Page 62
2015
Call for papers
Next issue of
April-June, 2015
ISSUE-9
Last Date for Submission of Papers

30, June, 2015
To
Managing Editor
Mr. Vivek Srivastava
E-mail:managingeditorekansh@gmail.com
For further information contact at:

GNIOT College of Management, Greater Noida
Plot-6 C, Knowledge Park-2, Greater Noida
Ph. 8860606680
Website: www.gniot.net
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SHRI KISHAN LAL GUPTA

SHRI BISHAN LAL GUPTA

SHRI GAURAV GUPTA

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Tools for TQM

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Poorly Laid Out Work

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1. Benchmarking Its a systematic and continual measurement process, comparing the

Fish Bone Diagram

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Defects per million Sigma

Cost of poor Types

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Fish Bone Diagrams

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Fig.3: Quality Tools Used in Automobile Manufacturers

Fig. 4: Quality Tools used in Suppliers Category

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No. of quality tools

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Fish Bone Diagram, Brainstorming, Run Chart, Suggestion 7

Histogram, Fish Bone Diagram, Brainstorming, Run Chart, 10

Histogram, Fish Bone Diagram, Brainstorming, Run Chart, 13

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Histogram, FMEA, QFD, Fish Bone Diagram, Brainstorming, 20

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