CHAPTER-1

INTRODUCTION

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 INTRODUCTION

Nowadays the relationship between employees and employers may be seen upside
down. Since there the number of job opportunities available for employees has been
increasing in a growing worldwide economy, not just employees but also employers need to
readjust themselves in order to cope up with the dynamics of business life. Therefore, HR
executives need to consider new strategies for recruiting and retaining best fit talents for their
organizations. Higher salaries and compensation benefits may seem the most likely way to
attract employees. However, quality of the physical workplace environment may also have a
strong influence on a company’s ability to recruit and retain talented people Some factors in
workplace environment may be considered as keys effecting employee’s engagement,
productivity, morale, comfort level etc. both positively and negatively. Although convenient
workplace conditions are requirements for improving productivity and quality of outcomes,
working conditions in many organizations may present lack of safety, health and comfort
issues such as improper lightening and ventilation, excessive noise and emergency excess.
People working under inconvenient conditions may end up with low performance and face
occupational health diseases causing high absenteeism and turnover. There are many
organizations in which employees encounter with working conditions problems related to
environmental and physical factors.
Most people spend fifty percent of their lives within indoor environments, which
greatly influence their mentalstatus, actions, abilities and performance. Better outcomes and
increased productivity is assumed to be the result of better workplace environment. Better
physical environment of office will boosts the employees and ultimately improve their
productivity. Various literature pertain to the study of multiple offices and office buildings
indicated that the factors such as dissatisfaction, cluttered workplaces and the physical
environment are playing a major role in the loss of employees’ productivity.

DEFINITION OF PRODUCTIVITY: The amount of output that is produced per unit of

input; usually expressed in terms of output per unit of time.

Measuring the employee productivity:

The first thing to consider when measuring productivity within an organisation is why it is
being measured. Depending upon the purpose of measuring productivity, there is an array of

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different stances from which it can be measured: the economist, accountant and manager
approaches.
The economist:
From this perspective, productivity is measured as the ratio of outputs to associated inputs
where both are expressed in real, quantifiable units. That is, outputs and inputs can be
counted numerically. In this case, productivity is the efficiency with which an organisation
turns inputs into outputs. Further distinctions can be made within this approach depending
upon the specific inputs and outputs included in the ratio. If all the inputs and outputs of the
process are included in the ratio, then total-factor productivity has been calculated (this is
also referred to as multifactor productivity).If the organisation selects particular inputs and
outputs to include in the ratio then partial-factor productivity has been calculated. In most
cases, the outputs are divided specifically by the amount of labour used to produce them; this
is referred to as labour productivity.
The accountant:
This is similar to the economist approach. However, financial ratios of input and output are
calculated. Therefore, the focus is on the pound to pound ratio of productivity – how much
money is spent on payroll, resources, training (inputs) and how much profit is generated
(output) from these. The accountant approach is a type of efficiency measure but focuses
specifically on the financial efficiency of the organisation.
The manager:
This is the broadest approach to measuring productivity. It includes all the aspects that can
influence productivity such as the quality of output, work disruptions, absenteeism, turnover,
and customer satisfaction. Due to the range of factors involved, productivity can be defined
and measured differently depending upon the role, organisation or sector. It could be
described as representing a board member or shareholder perspective of an organisation.
Efficiency vs. effectiveness:
Deciding between efficiency and effectiveness measures of productivity appears a
salient issue within the productivity literature. By definition, efficiency measures of
productivity are concerned with output relative to input. This would be the classic view of
productivity and most similar to the economist and accountantapproaches.
As efficiency measures only incorporate quantifiable inputs and outputs, this allows
calculating productivity to be relatively straightforward and easily interpretable.
In addition, when inputs and outputs are defined in monetary terms, productivity
becomes directly reconcilable with profitability – making it a more attractive approach for

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management and stakeholders. At the same time, efficiency measures have some obvious
disadvantages. Principally, that they tend to take no account of output quality, customer
satisfaction, training or resources used – factors which are crucial to an organisations
functioning and therefore productivity.
Furthermore, efficiency approaches take no account of the demand for a product or
service. An organisation may produce masses of product and therefore appear productive.
However, if there is no market demand for these products then the organisation will suffer.
Ultimately, efficiency measures as indicators of productivity may provide useful, basic
information on the proficiency with which an organisation is operating, but they do not
appear comprehensive enough to provide a true picture of either individual-level or
organisational-level productivity.
Effectiveness measures the productivity to fill this gap. This type of productivity
measure looks at output in relation to goals; these can be individual goals or wider
organisational goals. These measures work best when applied to a specific organisational
unit, for example the sales department. The difficulty faced in this approach is defining the
goals that input is being compared to. Despite organisations as a whole striving to achieve
high level goals and objectives, the functions that make up an organisation will each operate
to achieve their own relative goals. For instance, the sales unit of an organisation will have
different goals to the marketing or IT functions. Therefore, if goals are defined for each
organisational unit, it is easier to calculate productivity than if broad organisational goals are
used. In adopting this method, smaller changes in productivity across units of the
organisation can be identified.
The resources used in attaining these goals are another important considerations. It is
evidently counter-productive to achieve goals but exhaust resources in the process. It is often
the case that managers judge productivity of employees by whether performance targets are
achieved, without looking closely at how they are met. There is no inclusion of the resources
used or the quality of work when productivity is measured in this way. This further
emphasises the issue of using basic and simplistic measures of productivity.
Overall, while effectiveness measures may give a clearer indication of organisational
productivity they still hold limitations. It is recommended that a combination of both
efficiency and effectiveness measures be used in order to develop a comprehensive picture of
organisational productivity.

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1.1 NEED FOR THE STUDY:

 Employee productivity has considerable potential in financial management.

 Since, financial organizations are primarily productivity oriented; it is fit to manage
the productivity of the human resources timely to meet the standards.
 Employee performance has a direct impact on employee’s productivity. Without a
systematic method to ensure that employees understand and meet their performance
goals and maintain competencies, organizations put themselves at risk.
 Employee productivity enables the linking of individual targets to broader service and
organizational objectives.

The need for betterment of financial companies across the globe proves the importance of
employee productivity.

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1.2 SIGNIFICANCE OF THE STUDY:
This study seeks to bring out the various employee relations practices to increase its
productivity and contribute its quota in the economic development of the communities which
it operates in the country at large. This study therefore helps to enlighten management of
various organizations of the various effects of relationship practices between employers and
employees in an organization. The study will also bring out specifically, the employee
relations practices which the company has been to make available to its employees. It also
seeks to bring out the level of encouragement and motivation the company has given to its
employees to work effectively among others. The importance of this study is therefore to
highlight the various employee relation practices and how it effects the productivity of an
organization. This study will go a long way to illustrate how organizations should treat
employees in order to increase productivity.

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1.3 OBJECTIVES OF THE STUDY:
The objectives of this study are:
 To identify various employee relation practices, and its effect on the productivity of
an organization.
 To identify the challenges faced by employees at work places to stay productive.
 To identify ways of enhancing healthy relationship between employees and employers
in an organization.
 To increase the productivity in the work place.

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1.4 SCOPE OF STUDY:
The topic chosen ”employeeproductivity”has been aimed for the betterment of the
organization in terms of quality as well as quantity. The scope of the study under the
mentioned points depicts the same.

 The study becomes a tool to check – out non standardized level of performance
alongside fostering the productivity of the employees by taking necessary measures.

 This program would help to identify and meet the future needs of development in
terms of productivity and system of performance management in the organization.

 The program helps employees to improve their knowledge and skills in the respective
groups and departments.

 The program provides employees with a better understanding of their roles and
responsibilities within the organization.

 Increase confidence through recognizing strengths while identifying training needs to

improve weaknesses.

 Improve working relationships and communications between supervisors and

subordinates; increase commitment to organizational goals.

 Allow time for self – reflection, self – appraisal and personal goal setting.

 Assist in personnel decisions such as promotions or allocating rewards.

 This study can be over looked in quantitative terms as we study the nature of their
roles and responsibility rather than quantities. Since it aims to know the opinions,
views, expectations of employees towards company also maximum effort by
employees being taken to see the final result of the work which becomes a reliable
one.

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1.5 RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. It is
understood as a science of studying how systematically a research is done scientifically. In it
we study steps that are generally adopted by the researcher in studying the research problem
along with the logic behind them.
Research Instrument and Statistical Techniques
Normally two types of data are used for the purpose of carrying out research. For this
survey also, I have collected these data i.e.
a. Primary data b. Secondary data
a. Primary Data:
Primary data is one, which is collected from fresh sources and for the first time while
conducting the research. For the project, primary survey has been undertaken through a
survey instrument consisting of structured questionnaire filled by employees by the way of
personal interviewing
b. Secondary data:
Secondary data is that data which has been collected for some other purpose. There
are two types of sources for collecting secondary data: a. Internal sources b. External sources
Internal sources of secondary data includes the data generated within the organization. E.g.
Employee Engagement Survey Result. External sources of secondary data are the sources
outside the organization. E.g. Annual Publications, Books, Magazines and Internet etc.
The methodology used for my project is as follows:
Research approach method- Survey Method
Area of study-The survey was carried out in KARVY. A survey was effective to study the
strategic human resource management in the company.
Research- Exploratory and Descriptive
Data Source- Primary Data and Secondary Data
Research Technique- One-on-One interview
Time period of study-2 months
Sample size- For the purpose of study, the population comprises nearly 25 employees are
taken as sample on the basis of simple random sampling. The population includes the
employees of the various departments in the organization.
Sampling method- Sampling procedure used for this study is Simple Random Sampling
Sample design- To select the samples, the sampling technique used was Simple Random
Sampling. The main benefit of Simple Random Sampling is that it guarantees that the sample

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chosen is a representative of the population. This ensures that the statically conclusions will
be valid. In this technique each member of the population has an equal chance of being
selected as subject. The entire process of sampling is done in a single step with each subject
selected independently of the other member of the population.
Method for data collection- The research instrument used in this study is structured
questionnaire which consists of questions. It was predetermined before conducting the
survey.
Data analysis - For the analysis of data, percentage method of analysis is used.

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1.6 LIMITATIONS OF STUDY:
The research study is limited to a few aspects:
 Time was the most critical limiting factor.
 The study was limited to the extent of information provided by the employees of a
particular grade only.
 The outcome of the study cannot be generalized. The study needs to be tested on a
larger dataset.
 The responses from the employees could be casual in nature, chance of bias is present.
 The sample size is too small to reflect the opinion of the organization.

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 CHAPTER-2

INDUSTRY AND COMPANY PROFILE

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2.1 INDUSTRY PROFILE
STOCK MARKET

Stock Market represents the Secondary Market, where existing Securities, Shares and
Debentures are traded; A Stock Exchange provides an organized mechanism for purchase and
sales of the Securities. At present, there are 24 Stock Exchanges in our country. The
investors want liquidity for their investments. Stock Exchange provides a place, where
Securities of different companies can be purchased and sold.

Introduction to Stock market trading:

The trading on stock exchanges in India used to take place through open outcry without use
of information technology for immediate matching or recording of trades. This was time
consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to
provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully-
automated screen based trading system (SBTS) where a member can punch into the computer
quantities of securities and the prices at which he likes to transact and the transaction is
executed as soon as it finds a matching sale or buy order from a counter party. SBTS
electronically matches orders on a strict price/time priority and hence cuts down on time, cost
and risk of error, as well as on fraud resulting in improved operational efficiency. SBTS
allows faster incorporation of price sensitive information into prevailing prices, thus
increasing the informational efficiency of markets. It enables market participants, irrespective
of their geographical locations, to trade with one another simultaneously, improving the depth
and liquidity of the market.

STOCK EXCHANGE

A stock exchange, (formerly a securities exchange) is a corporation or mutual

organization which provides "trading" facilities for stock brokers and traders, to trade stocks
and other securities. Stock exchanges also provide facilities for the issue and redemption of
securities as well as other financial instruments and capital events including the payment of
income and dividends. The securities traded on a stock exchange includes: shares issued by
companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade
a security on a certain stock exchange, it has to be listed there. Usually there is a central
location at least for recordkeeping, but trade is less and less linked to such a physical place,
as modern markets are electronic networks, which gives them advantages of speed and cost

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of transactions. Trade on an exchange is by members only. The initial offering of stocks and
bonds to investors is by definition done in the primary market and subsequent trading is done
in the secondary market.

Securities Includes:

Shares, scrip’s, Stocks, Bonds, Debentures stock or other marketable securities of a like
nature in or of any incorporated company or other body corporate;

a) Government securities; and

b) Rights or interest in securities.

HISTORY OF STOCK EXCHANGES

The history of stock exchanges can be traced to 12th century in France, when the first
brokers are believed to have developed, trading in debt and government securities. Unofficial
share markets existed across Europe through the 1600’s, became the first official stock
exchange when it began trading shares of the Dutch East India Company. These were the first
company shares ever issued

The origin of stock exchange in India can be to the latter half of 10th Century. After
the American civil war (1860-61) due to the share mania of the public the number of brokers
dealing in the share increased. July 9th 1875: Native brokers from Bombay started the native
share and stock brokers association with 318 members on the list.

Houses of Exchanges arose in Europe during the 15th century. Trading was carried on
Exchanges in terms of Securities, which represented goods. Antwerp, Lyons, Amsterdam
and London celebrated all over Europe for their dealings in Stock Exchanges. Particularly
the London Stock Exchange can be considered as the modern type of Stock Market. It had
more than 500 members in 1802. During that time, the list of Securities traded had
considerably expanded and a vast majority of them were International in contact with the
home issues. In New York, the Stock Exchange came into existence immediately after the 13
colonies became independent to form the United States of America. In 1817, the brokers
organized themselves into the New York Exchange Board with a definite constitution. There
were many changes and re -organizations and amalgamations till 1969, during which the
“The New York Stock Exchange” was formed with a maximum membership limited to 1100.

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 The origin of Stock Exchanges in India is traceable in the later half of the 19th
century. At that time, Capital Market dealings were limited to loan stock transactions of the
East India Company. By 1930, Stock Market took a turn with the emergency of some
corporate stock and development of textile mills that resulted due to the America civil war,
which gave Indian businessmen a global chance of quick profiteering by increasing exports
of cotton to America and Europe at exorbitant prices.

STOCK EXCHANGE STANDS FOR

The term “STOCK EXCHANGES” implies is evident from the following feature of
an exchange.

S - Securities provider for investor

T - Tax benefits, planning and examples

O - Optimum return of investments

C - Caution approach

K - Knowledge of Market

E - Eligibility for accruals

X - Exchange of securities transacted

C - Cyclopaedia of listed companies

H - High yield

A - Authentic information

N - New entrepreneurs encouraged

G - Guidance to investors and companies

E - Equity cult

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STOCK EXCHANGES IN INDIA

In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India
began with the outbreak of American civil war. At the end of the war in 1874, the market
found a place in a street (now called Dalal Street). In 1887, "Native Share and Stock Brokers'
Association" was established.

The next Stock Exchange, which emerged in the country, was ‘Ahmadabad Share and
Stock Brokers Association’ which was established in 1894. The third Stock Exchange was
set up at Calcutta in the year, 1908. Though some Stock Exchanges were set up before the
Independence, there was no All India Legislation to regulate their working.

To rectify this situation and to regulate the working of Stock Exchanges in the
country, the Securities Contracts (Regulation) Act was passed in 1956.

At present, there are 24 Recognized Stock Exchanges (BSE, NSE and Regional Stock
Exchanges) in India.

Names & Locations of various Stock Exchanges in India are:

1. Bombay Stock Exchange (BSE) Ltd.,- Mumbai

2. National Stock Exchange of India (NSE) Ltd., - Mumbai

3. The Ahmadabad Stock Exchange., - Ahmadabad

4. Bangalore Stock Exchange Ltd., - Bangalore

5. Bhubaneswar Stock Exchange Association Ltd., - Bhubaneswar

6. The Calcutta Stock Exchange Association Ltd., - Kolkata

7. Cochin Stock Exchange Ltd.,- Kochi

8. Coimbatore Stock Exchange Ltd.,- Coimbatore

9. The Delhi Stock Exchange Association Limited - New Delhi

10. The Guwahati Stock Exchange - Guwahati

11. Hyderabad Stock Exchange Ltd., - Hyderabad

12. Inter-connected Stock Exchange of India - Mumbai

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13. Jaipur Stock Exchange Limited - Jaipur

14. The Ludhiana Stock Exchange Association Ltd., - Ludhiana

15. Madhya Pradesh Stock Exchange Ltd., - Indore

16. Madras Stock Exchange Ltd., - Chennai

17. Mangalore Stock Exchange Ltd., - Mangalore

18. Meerut Stock Exchange Ltd., - Meerut

19. over the Counter (OTC) Exchange of India- Mumbai

20. Pune Stock Exchange Ltd., - Pune

21. Saurashtra-Kutch Stock Exchange Ltd., - Rajkot

22. The Uttar Pradesh Stock Exchange Ass. Ltd., - Kanpur

23. Vadodara Stock Exchange Ltd., - Baroda

24. The Magadh Stock Exchange Association- Patna

Securities and exchange board of India (SEBI):

SEBI was setup as an autonomous regulatory authority by the government of India “to
protect the interest of investors in securities and to promote the development of and to
regulate the securities market”. It is empowered by two acts namely the SEBI Act 1992 and
securities contract (regulation) Act 1956. SEBI has come into force from January 30,
1992.under the provision of Act; it shall be the duty of SEBI

(a) To protect the interest of investors in securities.

(b) Promote the development of the securities market.

(c) Regulate the securities market.

FACTORS INFLUENCING PRICES ON STOCK EXCHANGES

 Financial Position of the company

 Demand and supply position of scrip’s

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  Role of financial institutions

 Lending rates

 Trade Cycles

 Speculation activities

 Government Control

CHARACTERISTICS OF STOCK EXCHANGES

 It is a place where securities are purchased and sold. A stock exchange is an

association of persons whether incorporated or not.

 Trading in stock exchanges are strictly regulated by the rules and regulations
prescribed by Stock Exchange Board of India (SEBI)

 Both genuine investors and speculators buy and sell shares in a Stock Exchange
Securities of corporation, trusts, Government, Municipal corporations etc., are traded
at stock exchanges.

PROCEDURE FOR DEALING AT STOCK EXCHANGES

The buying and selling at stock exchanges is not allowed to outsides. They have to approach
brokers who are members of the stock exchange. The following are the things that are
involved in dealing with Stock Exchanges:

1. Selection of a Broker

The first thing to do is to select a broker through whom the purchase or sales is to be
made.

2. Placing an Order

After selecting the broker, the client places an order for purchase or sale of securities.

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3. Making the contract

The authorized clerk of the broker goes to the concerned post and expresses his
intention to buy and sell securities. A deal is struck when other party agrees.

4. Contract note

The buying and selling brokers prepare notes after their mutual consent next day.

5. Settlement

The spot dealings are settled there in full. The settlement for ready delivery and
forward contacts is done with a different procedure.

Market Types:

The Capital Market system has four types of markets.

1. Normal Market

Normal market consists of various book types where in orders are Segregated as
Regular Lot Orders, Special Term Orders, Negotiated Trade Orders and Stop Loss Orders
depending on their order attributes.

2. Odd Lot Market:

The odd lot market facility is used for the Limited Physical Market.

3. Ret debt Market:

The RETDEBT market facility on the NEAT system of Capital Market Segment is
used for transactions in Retail Debt Market session. Trading in Retail Detail Market takes
place in the same manner as in equities (capital market) segment.

4. Auction Market:

In the Auction market, auctions are initiated by the Exchange on behalf of trading
members for settlement related reasons.

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STOCK MARKET INTERMEDIARIES:

Client Brokers:

They do simple brokering between buyers and sellers and earn only brokerage for
their services from the clients.

Floor Brokers:

They are authorized clerks and sub brokers who enter the trading floor and execute
orders for the clients or for members.

Jobbers and Market Makers:

Jobbers/Market Makers are the members, who are ready to buy and sell simultaneously in
selected scrip’s, offering bid and offer rates for the brokers and sub-brokers on the trading
floor and earning profit through the margin between buying and selling rates

Arbitrageurs:

They are members who do inter market deals for a profit through differences in prices
as between markets.

Badla Financiers:

They are members who finance carry forward deals in specified group for a return in
the form of interest, called Badla Rate. They lend money or shares for the brokers who, over-
buy or over-sell respectively at the time of settlement. Badla is a carry forward facility from
one settlement to another without taking a delivery up to a maximum period of 90 days at a
time, now reduced to 7-15 days.

TYPES OF SPECULATORS

There are different types of speculators who are active on Stock Exchanges in India.
They are:

Bull

A Bull (Tejiwala) is an operator who expects prices to rise in future and sells securities in the
future. A bull tends to throw his victims up in the air.

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Bear

A bear (Mandiwala) speculator expects prices to fall in future and sells securities at present
with a view to purchase them at lower prices in future. Just as bear presses, it’s victims down
to the ground.

Stag

A Stag is a cautious speculator in the stock exchange. He applies for shares in new
companies and expects to sell them at premium if he gets an allotment. He sells the shares
before being called to pay the allotment money.

Lame duck

When a bear finds it difficult to fulfill his commitment, he is called struggling like a
lame duck.

SECONDARY MARKET (STOCK EXCHANGES):

The stock exchanges are the secondary markets. They serve not only the private sector
but also the joint and public sectors by providing a facility for the transferability of shares
held by the public. Thus the stock exchange is a medium of transfer of resources for the
securities, which have been already issued in primary market.

The brokers, the investors, mutual funds, and the financial institutions are the
important constituents of the secondary market.

According to the Securities Contract (Regulation) Act 1956, the Stock Exchange can
be defined as “An association, organization or body of individuals, whether incorporated or
not, established for the purpose of assisting, regulating business in buying, selling and dealing
in securities”.

FUNCTIONS OF STOCK EXCHANGE:

 Ensure liquidity of capital

 Continues market for Securities

 Evaluation of Securities

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  Mobilizing surplus savings

 Helpful in raising new capital

 Safety in dealings

 Listing of securities

 Platform for public debt

 Centre for business information

SERVICES OF STOCK EXCHANGE:

There is a strong need for the growth of capital market and stock exchanges in any
country. The stock exchange operations in India have shown an increasing tendency during
the period under the review. The stock exchanges have increased in India to provided
valuable services to the community.

They are:

A) SERVICES TO THE NATION

1. It leads to economic development of the Nation.

2. They serve as an agency of the capital formation.

3. Stock exchanges divert the savings towards productive channels.

4. They provide liquidity and continuous market facility.

5. They provide a forum for raising public debt for national important projects.

B) SERVICES TO THE INVESTORS

1. It provides ready marketability of securities

2. It ensures safe and fair dealings in securities

3. It provides the facilities for quick disposal of securities

4. It helps to educate the public by various methods

5. They provide information about the listed companies

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C) SERVICES TO THE CORPORATE SECTORS

1. Helps in raising capital from public

2. Listing of securities is a symbol of credit worthiness of the company

3. Helps to new companies

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2.2 COMPANY PROFILE

VISION:

“Strive to be the leaders and experts through our processes, people and technology
offering the unique blend that delivers superior value by establishing and maintaining the
highest levels of services and professionalism.”

MISSION:

“To be the leading and preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising, and technology
driven organization which will set the highest standards of service and business ethics.”

HISTORY OF KARVY:

One fateful evening in the summer of 1982, 5 young men who worked for a renowned
chartered accountancy firm decided that it was time they struck out on their own to create an
enterprise that would someday become an iconic name in the financial services space.

They came from ordinary middle class backgrounds. They had two assets; one was
their education and the other an unquenchable desire to succeed. They had a lot stacked
against them: the environment was not conducive to entrepreneurship; technology was not
fully supportive, financial markets were largely un-regulate, they were based out of
Hyderabad while most key players in the financial world were in Mumbai or other metros
and the wolf was at the door. The odds seemed insurmountable.

These remarkable young men’s “Never say die” approach held them in good stead
over the years. They stuck to their dreams, burnt the midnight oil, embraced technology and
made it work for them and through sheer dint of determination, eventually overcame all
obstacles.

First came the registry business, followed by broking, and the rest became a lesson for every
young individual to emulate.

ABOUT KARVY
Karvy Stock Broking Limited (KSBL) which is the broking arm of Karvy Group, a
well-diversified conglomerate whose business encompasses the entire financial services
spectrum along with data processing and managing segments.

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 Karvy’s financial services business is ranked among the top-five in the country across
its business segments. The Group services over 70 million individual investors in various
capacities and provides investor services to more than 600 corporate houses, comprising the
best of Corporate India.

Karvy prides itself on being extremely customer centric at all times providing leading
edge technology combined with professional management and servicing through a wide
network of offices across India.

Karvy Stock Broking Limited (KSBL) is among the country’s leading financial
services organizations renowned for its quality of investment and advice. KSBL through its
wide network of offices across India offers customized investment solutions to corporate,
institutions and individual investors.

KSBL helps investors construct a portfolio by factoring in their risk profile and future
financial needs so that their investments achieve an optimal balance between risk and returns.

Our comprehensive trading account helps clients approach various investment

avenues in an integrated fashion, providing them the facility to transact with ease. We have a
combined account facility that caters to all investment opportunities such as trade in Equities,
Derivatives, Currency and also investing in IPOs, Mutual funds and NCDs.

KSBL was awarded BSE Order of Merit award and the SKOCH – BSE Aspiring
Nation award in recognition to its efforts to educate, empower and help create financial
markets literacy among investors.

The Karvy Group is a premier integrated financial services provider, ranked among the
top-5 in the country across its business segments. The Group services over 70 million
individual investors in various capacities, and provides investor services to over 600
corporate houses. Karvy Group established its presence through a wide network of over 450
branches, (or 900 offices) covering in excess of 400 cities and towns.

Karvy covers the entire spectrum of financial services, i.e., stock broking, depository
participant, distribution of financial products (including mutual funds, bonds and fixed
deposits), commodities broking, personal finance advisory services, merchant banking &
corporate finance, wealth management, NBFC, among others.

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 The Group is professionally managed and ranks among the best in technology, operations
and research across the financial industry. The Karvy Group has evolved over the last
three decades and today it assumes many avatars. Broadly the group pursues two lines of
businesses and can be graphically represented as follows:

KARVY GROUP

The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the
top player in almost all the fields it operates. Karvy Computershare Limited is India’s largest
Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates, managing
over 70 million accounts. Karvy Stock Broking Limited, a member of National Stock
Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in
India. With over 6, 00,000 active accounts, it ranks among the top 5 Depository Participant in
India, registered with NSDL and CDSL. KarvyComtrade, Member of NCDEX and MCX
ranks among the top 3 commodity brokers in the country. Karvy Insurance Broking Limited
is registered as a Broker with IRDA and ranks among the top 5 insurance agents in the
country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual
Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty (India) Limited,
which started in 2006, has quickly established itself as a broker who adds value, in the realty
sector. Karvy Global offers niche off shoring services to clients in the US. Karvy has 575
offices over 375 locations across India and overseas at Dubai and New York.

The Karvy Group is a premier integrated financial services provider, ranked among
the top-5 in the country across its business segments. The Group services over 70 million
individual investors in various capacities, and provides investor services to over 600
corporate houses. Karvy Group established its presence through a wide network of over 450
branches, (or 900 offices) covering in excess of 400 cities and towns.

Karvy covers the entire spectrum of financial services, viz stock broking, depository
participant, distribution of financial products (including mutual funds, bonds and fixed

26
deposits), commodities broking, personal finance advisory services, merchant banking &
corporate finance, wealth management, NBFC, among others.

The Group is professionally managed and ranks among the best in technology,
operations and research across the financial industry. The Karvy Group has evolved over the
last three decades and today it assumes many avatars. Broadly the group pursues two lines of
businesses and can be graphically represented as follows:

COMPANIES

 Karvy Stock Broking LTD

o Equity Broking, Depository Participant, Distribution of Financial Products
(Mutual Funds, FD and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services

 KarvyComtrade LTD
o Commodities Broking

 Karvy Capital LTD (Formerly Karvy Capital Private LTD)

o NBFC & Portfolio Manager

 Karvy Investment Advisory Services LTD (Formerly known as Karvy

Insurance Broking LTD)
o Investment Advisory Services

 Karvy Holdings LTD

o Core Investment Company

 Karvy Middle East LLC

o Wealth Management Products for NRI's

 Karvy Realty (India) LTD

o Realty Services

 Karvy Financial Services LTD

o Non-Banking Financial Services

 Karvy Insurance Repository LTD

o Insurance Repository services

 Karvy Forex & Currencies Private LTD

27
 o Currency and forex services

 Karvy Consultants LTD

o Consultancy and Advisory Services, Publications

 Karvy Computershare Private LTD

o Registrar and Share Transfer agent

 Karvy Computershare W.L.L (Formerly known as FakhroKarvy Computershare

W.L.L)
o Agent for Custody & Registration of Securities, Registered Administrator

 Karvy Data Management Services LTD

o Data Management Services

 Karvy Investor Services LTD

o Merchant Banking and Corporate Finance

 Karvy Insights LTD

o Market Research

 Karvy Analytics LTD

o Analytics

 Karvy Solar Power LTD

o Power Generation

 Karvy Global Services LTD

o Business Process Outsourcing

 Karvy Global Services Inc, USA

o Business Process Outsourcing

 KarvyInc, USA
o Institutional Broking

ORGANIZATIONAL CHART:

28
PROMOTERS & MANAGEMENT TEAM

Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified

financial services Karvy group. C Parthasarathy (CP as he is better known in the Industry),
has the uncanny knack of staying ahead of the curve and the foresight to spot opportunities
that seem invisible on the horizon for the others. Karvy’s entire history is a case study of
turning adversity into opportunity. CP is a chartered accountant by qualification, whose
entrepreneurial energy drove him to co-found Karvy in 1983 with a less-than-modest capital
of Rs 150,000.

Over the years CP’s vision and leadership skills have helped the group navigate through the
turbulent times with a strong sense of purpose and clarity of thought.

CP is one of the pioneers of financial inclusion. Under his leadership Karvy has won
numerous industry awards and accolades. He also is an independent Director in many listed
companies.

29
 Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group.
He is a Fellow Member of the Institute of Chartered Accountants of India and has varied
experience in the field of financial services spanning 30 odd years.

Yugandhar has helped position and build a strong brand for the group in the registry and
other financial services businesses. The registry business of Karvy is one of its flagship
businesses and with the collaboration with Computershare has grown to become the largest
registrar in India for over two decades. Yugandhar has played a key role in building strong
relationships with public sector banks and other PSUs which have helped Karvy win some
important mandates from some of India’s renowned companies.

Karvy under his guidance has helped create the equity cult and substantially built retail
investor wealth. He is an Independent Director on the board of several reputed companies.

Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the

orchestrator of technology initiatives such as the call center in the service of the customer.

Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30
years of experience in the financial services arena. He has helped KARVY diversify into the
field of medical transcription leveraging on the company's core competency of transaction
processing.

He is an Independent Director on the board of several reputed companies.

MANAGEMENT TEAM

Mr. V Mahesh is the Managing Director of Karvy Data Management and has work
experience spanning over 2 decades with in depth exposure to operations on most financial
services businesses. Commencing his professional stint with the Registry business where he
has to his credit managing over 300 IPOs and other forms of offerings, he was amongst the
first few to work closely on the Book Building process initiated by SEBI in 1995. After
initially working with MCS as an Assistant Vice President, he moved to Karvy. He was also
responsible to initiate the process of setting up the Depository participant business in Karvy
and was responsible for both the operations and the marketing of the business. He has been
nominated by the NSDL to various committees which addressed key changes to the overall
processes and policies for the Demat business.

30
Nurturing the passion for understanding and interpreting technology and processes, he was
responsible to create and set up the centralized broking platform, centralized back office
operations for all financial products and creating a network of over 500 branches covering
over 300 locations for Karvy. He is also instrumental in creating and launching the online
platform of Karvy Stock Broking Limited.

He is a Post Graduate in Commerce from University of Madras (M.Com). and also

completed Post Graduate Diploma in Computer Applications.

Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5
decades of experience in the financial services space and is part of Karvy Group’s leadership
team. Before joining KARVY, he was associated with ITC’s risk management and financial
audit services department. Earlier he was associated with Proctor and Gamble and was
responsible for product pricing and financial support functions for P&G’s soaps and health
care businesses.

He was instrumental in setting up the Mutual Fund registry business for Karvy. At
KARVY, for over 2 decades, Ganesh has been instrumental in building a strong techno-
commercial base with emphasis on establishing a pan India branch network, back office
processing, call centre, web initiatives, online trading, B2B interfaces etc., in the transfer
agency and BPO businesses.

Amit Saxena is the CEO & Whole time Director, Karvy Financial Services Ltd. He
started Karvy Finance, a NBFC in the challenging times of 2009 and has successfully built
the company in a short period as a leader in Micro & Small Business Loan Segment with a
multi-product suite, a differentiated and direct neighborhood business loan lending model and
a pan India branch network.

Prior to establishing Karvy Finance, Amit Saxena worked with Citigroup Consumer
Finance across leadership roles in Auto Finance, Mortgages and Consumer Finance. Amit
Saxena with his keen knowledge of MSME & Consumer Finance industry since its inception
in mid-nineties in India has been instrumental in establishing new geographies, new products
&startup ventures across India throughout his career. Conceptualization, innovation and
execution being the key elements defining his success in every venture.

Mr.Sushil Sinha, the Country Head of KarvyComtrade Ltd, has successfully made
KarvyComtrade a force to reckon with in the marketplace. With over 10 years of expertise in

31
the broking sector, he is a well-known face today in the electronic and print media. Under his
aegis, the company has won numerous honours and awards nationwide, including the UTV
Bloomberg Leadership Award 2011 and India’s Best Market Analyst Award—for two
consecutive years—by Zee Business.

Having joined KarvyComtrade in December 2005 as Senior Manager (Business

Development), he has steadily climbed up the organizational ladder to head the business now.
Before joining KCTL, he worked in Geojit Financial Securities for two years. Prior to that, he
had worked with the Agriculture department in the Government of Jharkhand under various
capacities for four years.

A science graduate, Mr. Sinha has completed two MBAs, one majoring in Personnel
Management & Industrial Relations from Patna University and the other in Agri Business
Management from IIPM, Bangalore, a Ministry of Commerce, Government of India
institution.

Mr.Ramapriyan is working with Karvy for over 2 decades; He has strength of sorts in
the distribution of financial products including Equity, Bonds, Fixed Deposits and Auto
Finance. He has successfully marketed several financial products for large number of
corporate of various sizes. He is also responsible for managing the Pan India Network of
brokers and sub-brokers. He has been instrumental in Karvy’s success in distribution of debt
products.

Mr. Rajiv R. Singh is the Vice President & Business Head of the Equity Broking
business. He has been associated with Karvy for more than a decade. He joined Karvy in
2001 and moved up the corporate ladder with his sheer dedication, commitment and hard
work.
Rajiv, with an enormous experience in finance industry leads the responsibility of all aspects
of Karvy’s equity broking business which includes strategy, revenue generation, business
development and overall customer satisfaction. Rajiv is widely regarded as results-driven
leaders who plays a key role in building the stock broking business of KSBL and make it one
of the largest stock broking houses in the country. Rajiv also plays a key role in identifying
skills and motivating staff in providing outstanding client service.

Mr.Ramaswamy, the Group Head for Corporate Affairs, is the official spokesperson
for the Karvy Group. Mr.Ramaswamy has more than 25 years of experience in various

32
spheres of the financial services industry, of which 10 years has been in the Legal and
Secretarial division of Reliance, handling various public issues, mergers, monitoring
performance of various departments, liaising with regulatory bodies and outside agencies
(viz., the stock exchange, SEBI, DCA and others), and coordinating all the board meetings.

The Corporate Affairs Division is involved in integration and strategic planning of all
the business divisions of Karvy. Mr.Ramaswamy’s job responsibility encompasses
monitoring the performance of all divisions through regular reviews, initiating and
implementing new business initiatives, corporate communication and media relations, acting
as official spokesperson for the entire Group, conceptualizing various policies and procedures
to improve the internal work environment, and working on a parallel platform with the HR
department to develop models for raising productivity and cost-effectiveness. He oversees the
international business of Karvy Global Services.

Mr. Deepak Gupta brings with him over 20 years of experience in HR, spanning
financial services, ITes and manufacturing. Prior to joining Karvy, he was Chief People
Officer, Human Resources, with Bajaj Finance Limited, a Rahul Bajaj Group Company,
based at Pune. He has also had a successful career with a few prominent corporate, including
SREI, Enam, CRISIL, CEAT Financial Services and Reliance Industries.

Deepak holds a Master’s degree in Human Resources Development from Jamnalal Bajaj
Institute of Management and a diploma in Business Management and Industrial Relations.

Mr. G. Krishna Hari holds a Bachelor’s degree in Commerce and is associate member
of the Institute of Chartered Accountants of India (ICAI). He has over 27 years of experience
in the areas of finance and accounts functions encompassing fund raising, financial reporting,
management accounting, and working capital management, taxation, budgeting and
forecasting and financial due diligence reviews for mergers & acquisitions and investment
proposals.

He has been associated with the Karvy Group for the past 15 years and is currently
designated as the Vice President- Finance & Accounts at Karvy Stock Broking Limited. Prior
to joining Karvy, he was the head of finance & accounts division in Asia Pacific Investment
Trust Limited, Hyderabad (Formerly Nagarjuna Investment Trust Limited) an NBFC
Company.

33
WHY KARVY

Karvy’s business entities address a heterogeneous swathe of population from the

super-rich, to the nouveau riche, the ubiquitous middle class, the lower classes (the SEC E3
according to the new Social Economic Classification), urban and the rural folks. All of whom
either make a living through large business (corporate world), SMEs, professional services,
traders, farmers, labour, blue and white collar jobs and the government.

Another key feature of Karvy has been its ability to offer leading edge advice based
on incisive ideas that are strongly rooted in high quality research on every conceivable aspect
of investments be it equities, forex, commodities, bonds, fixed returns, debt instruments or
any other investment grade asset class.

The customer has always been at the Centre of every Karvy initiative.

AWARDS & ACCOLADES

 Mr.RajatParthasarathy, Director, Karvy Group and Mr. Rajiv Ranjan Singh, Vice-
President & Business Head - Stock Broking receiving awards from India’s premier
stock exchange BSE - the SKOCH – BSE Order of Merit award and the SKOCH
– BSE Aspiring Nation award - in recognition of its efforts to educate, empower and
help create an enlightened corps of financial market investors.

 Mr.Sudhendoo Gandhi, GM, KSBL, receiving the "NSDL Star Performer Award
2014” for Highest Asset Value

 Mr.Sushil Sinha, Business Head, KCTL &Mr. Suresh Raval, General Manager,
KCTL receiving the ‘Broker with Best Corporate Desk for Commodity

34
 Broking’ award from Hon’ble Finance Minister then - Sri PranabMukerjee at the
Bloomberg UTV Financial Leadership Awards 2011

 Mr. C Parthasarathy, Chairman, Karvy Group, receiving the ‘Largest E-Broking

House in India’ award at the Dun & Bradstreet – BSE Equity Broking Awards 2010

Karvy Stock Broking Limited

2014

Won the prestigious "NSDL Star Performer Award 2014 for Highest Asset
Value". Organized by the National Securities Depository, the NSDL Star Performers Awards
recognize the best performers in the securities and depositories space. The award ceremony
was organized on Saturday, December 20, 2014, at TajCoromadel, Chennai. Karvy has won
this award consecutively for last two years.

2010

"Largest E-Broking House in India" at BSE Equity Broking Awards 2010 by Dun
& Bradstreet held in ITC Grand Maratha, Mumbai. This award is based on the study carried
out by the world’s leading provider of business information, knowledge and insight, Dun &
Bradstreet in association with the oldest stock exchange in India, the Bombay Stock
Exchange.

The BSE-D&B Equity Broking Awards recognizes the brokerage firms based on the
number of online accounts, volume of online trade, and service delivery of their online
trading platform. Karvy Stock Broking Limited has won this prestigious award for its state of
the art, in-house developed KarvyOnline, a comprehensive online investment platform that
enables investors to invest, anytime from anywhere.

2007

Bagged ace award by receiving the coveted Annual Award for 2006 for "Best CEO,
Initiating HR Practices”, by, the Uttar Pradesh Chapter of National Institute of Personnel
Management (NIPM). The Award has been conferred to Mr. C Parthasarathy, CMD, Karvy
Group, for his contribution to HR practices in Lucknow, organized by UP chapter of NIPM.

"Amity Corporate Excellence" award at the 9th International Business Summit and
Research Conference-INBUSH (International Business Horizon) which was held at a

35
glittering function in Noida. This award was conferred by Amity International Business
School, Noida.

2006

ISTD – "Vivekananda National Award" for Excellence in HRD & Training

2004

"Best Depository Participant in the country" award

36
 CHAPTER-3

THEORETICAL FRAMEWORK

37
3.1 MEANING OF PRODUCTIVITY:

The terms production and productivity are often used interchangeably. But there is
difference between the two. Production refers to the total output of all employees at a point of
time. Productivity refers to the output relative to the inputs per person or system with
reference to a point of time. Stated more clearly, productivity refers to the amount of goods
and services produced with the resources used. Productivity is measured with the help of a
formula which runs as follows:

Quantity of goods and services produced

Productivity = _______________________________
Amount of resource used

Productivity is the efficiency with which output is produced by a given set of inputs.
Productivity is generally measured by the ratio of output to input. An increase in the ratio
indicates an increase in productivity. Conversely, a decrease in the output/input ratio
indicates a decline in productivity time. For example, employee productivity is typically
measured as a ratio of output of employee per into account both the monetary value (price) of
what is produced and the cost of inputs used, and also distinct from metrics of profitability,
Productivity is the relationship between production of an output to one or more or all of the
resources inputs used in accomplishing the assigned task. It is a measure of efficiency and
time.

38
3.2 DEFINITIONS OF PRODUCTIVITY:
Production and productivity are two different concepts and these are explained below:

Production:The total quantity of goods and services produced by utilizing different

resources is called production.

Productivity: The amount of output that is produced per unit of input; usually expressed in
terms of output per unit of time

Definitions:
The experts, consultants, academician and practitioners have expressed their views on
productivity. Some of the accepted definitions of productivity are given below:

(i) Productivity is a measure relating a quantity or quality of output to the inputs required to
produce it. Often means employee productivity, which is can be measured by quantity of
output per time spent or numbers employed. Could be measured in monetary term like rupees
per hour.

(ii) Productivity is a measure of output from a production process, per unit of input. For
example, employee productivity is typically measured as a ratio of output per employee-hour,
an input. Productivity may be conceived of as a metric of the technical or engineering
efficiency of production.

(iii) Relative measure of the efficiency of a person, machine, factory, system, etc., in
converting inputs into useful outputs. Computed by dividing average output per period by the
total costs incurred or resources (capital, energy, material, personnel) consumed in that
period, productivity is a critical determinant of cost efficiency.

(iv)Productivity is a measurement of the output produced using a quantity of inputs. The

production process is a representation of the relationship between outputs and the inputs used
to produce them. –Diane Huber

39
(v)Employee productivity is the amount of goods and services that an employee produces
with a given expenditure of effort, usually measured or averaged out in terms of time spent
working or employee time.
Employee productivity can be measured for an individual, a firm, a process or a country.

(vi)The OECD defines it as "the ratio of a volume measure of output to a volume measure of
input". Volume measures of output are normally gross domestic product (GDP) or gross
value added (GVA), expressed at constant prices i.e. adjusted for inflation. The three most
commonly used measures of input are: hours worked; workforce jobs; and number of people
in employment.

Employee productivity is the value added per employee divided by the average
number of employees during the year converted into full-time equivalents. It is the ratio of
the amount produced to the amount of employee put in it, measured as product per person-
hour or person-year. Productivity growth reflects growth in output not attributable to growth
in inputs (such as employee, capital and natural resources). Increases in productivity can be
driven by technological advances (through innovation and increases in skills) or
improvements in efficiency (making better use of existing technology). Over the long term,
productivity improvements are considered to be the main contributor to higher results,
profitability, earning and rising living standards.
Measured employee productivity will vary as a function of both other input factors
and the efficiency with which the factors of production are used (total factor productivity). So
two firms or countries may have equal total factor productivity (productive technologies) but
because one has more capital to use, employee productivity will be higher. Output per worker
corresponds to the "average product of employee" and can be contrasted with the marginal
product of employee, which refers to the increase in output that resulted from a
corresponding (marginal) increase in employee input.

40
3.3 EMPLOYEE PRODUCTIVITY MEASUREMENT:
Employee productivity is the measure of efficiency at which the inputs are converted
into output through various manufacturing processes. To know the relative worthiness the
measurement is necessary. This measurement is very helpful for the management for future
planning and actions.The measurement can be carried out as per the need of the organization.
There are the following ways of measuring employee productivity:

(a) Output per Man-Hour:

Output
Employee Productivity =
Man-hours used
It can be known that whether the performance is going as per the pre-decided
standards or not. Employee productivity only partially reflects the productivity of employee
in terms of the personal capacities of workers or the intensity of their effort. The ratio
between output and employee input depends to a large degree on the presence of other inputs.
Gross-output based employee productivity traces the employee requirements per unit of
(physical) output. It effects the change in the input coefficient of employee by industry and
can help in the analysis of employee requirements by industry. Advantages of it are ease of
measurement and readability. In particular, the gross-output measure requires only price
indices on gross input, not on intermediate inputs as is the case for the value-added based
measure. Limitation of employee productivity is a partial productivity measure and reflects
the joint influence of a host of factors. It is easily misinterpreted as technical change or as the
productivity of the individuals. In this method the total output given by employees is divided
by total man hours. We get the employee force productivity.

(b) Employee Hours per Unit Output

Total employee hours used

Employee Productivity =
Output

In second method the total employee hours are divided by total output given by the
employees. From this the employee hours taken for production of one unit of output is

41
calculated. From this method the employee hours planning can be done so that the target
orders can be supplied in time to meet the customers’ requirements.

(c) Added Value per Unit of Employee Cost

Added value for the products

Employee Productivity =
Total wages

42
3.4 OBJECTIVES OF PRODUCTIVITY MEASUREMENT:
Productivity is a measure of efficiency and defined as a ratio of output to input use.
There are no differences over this definition among scholars, consultants, experts, and
practitioners. There are different measures of productivity. The objectives of productivity are
also general and not special. These are explained below:

(a) Search for Suitable Technology:

Technology can be defined as a tool, technique, system, design and a process that has
been utilized for production of products or services. It has been utilized to convert the
resources into outputs (products and services) as planned by the management of the company.
There are three components of technology. These are hardware, software and brain ware.
These three elements together are utilized to get the finished output. To do this work the
search is there to find out the suitable method that can meet the requirement in the present
competitive situation so that the company can get competitive edge in the business .The
technology giving or contributing in providing the higher productivity is the only choice. For
that reason also the productivity is measured. The technology needs a huge capital to invest
and if proper care is not taken then it may not meet the requirement of the company. In future
it becomes very difficult to replace it. Further, the existing technology productivity is also
measured to find out whether it is as per the requirement of time. If not meeting the required
level of productivity then the existing technology might be replaced by the new one. Due to
these reasons the productivity has been measured.

(b) Improve Working Efficiency:

The present scenario across the world is drastically changing. In this situation the
changes are taking place very rapidly. The condition is very risky and uncertain. Over and
above stiff competition is being faced in the market worldwide. Every firm is putting its best
efforts to perform the work better. This is the only mantra in present situation for survival,
grow, stabilize and excel in the business. Efforts are put to increase the quality, quantity,
decrease the time taken and cost involved. To know whether their efficiency is high or low, it
should be measured. The productivity is the measure of efficiency. Efficiency is the ability to
perform the tasks with available resources i.e. manpower, machine, money and materials
.With the help of productivity measurement the remedial and improvement actions can be
planned by the management so that their working ability stay in tune with the need of the
time to fulfil the objectives. That is why the productivity is measured.

43
(c) Reduce Production Costs:
For carrying out a smallest task resources are needed. Without resources the tasks
cannot be completed. In every organization different types of big and small jobs are being
performed. The list of those jobs is very big. All these need resources like manpower,
machines, money, materials and information. In purchasing or acquiring these resources a lot
of capital is need. Now the question arises how these resources are being used. If the
resources are used improperly then total cost would go high and it would have effect on the
profitability of the company. When the resources are utilized properly, there will be no waste
of any type then the total cost would be less. When the production cost is high, the products
or services will be available in the market at the higher price .But we may get products of
competitors at lower prices in the market. This situation would not be favourable for the
company because it would have deterrent effect on the sales of the company. To improve the
profitability the costs are to be reduced. The costs can be reduced by finding out the
productivity of every person, system, plant and job. The unwanted activity and unwanted
time are to be identified and eliminated. This is possible by measuring the productivity of all
concerned persons and systems. That is why it is needed to reduce the total operation costs.
This is a step ahead of cost control.

(d) Benchmark Production Process:

In competitive markets there is need to improve the production quantity and quality.
A comparative study in the industry is being carried out to find out the inefficiencies in the
total production system. A leading company from the global or national market is selected.
The products, production system, employees’ performance and facilities are compared with
the selected company. The products and production system of the selected company is
considered as bench mark in the market. With the help of the comparison the company finds
out the position of the products of the company in the market. On the basis of comparison the
weak areas are identified and management takes remedial action for improvement. To do all
these things the productivity is to be measured otherwise this comparative study cannot be
carried out.

(e) Assessment of Living Standards:

To find out the living standard at national level the level of per capita income is to be
found out. The income of individual reflects the living standard level. As per income
everyone spend on the requirement of life. The per capita income is the measure for living

44
standards. When the productivity of the individual is high their earning also goes higher. Out
of higher income a person spends on their day to day requirement like food, clothes, shelter,
education, medical, entertainment and luxury items .It reflects on the living standards. The
higher living standard would affect the growth of the economy also. When the authority is
interested to know the level of living standard at individual, division, department and
organizational level the productivity is required to be measured. For having the clear idea of
income and living standards of people the need for productivity measure is strongly felt. The
living standard of different countries people is measured on the basis of productivity and
income level. .This is the clear indicator of living standard.

45
3.5 PRODUCTIVITY MEASUREMENT ISSUES:
Employee productivity can be measured in physical terms in numbers. Meter, litre,
Further if required it can be measured in money term like price, profit and cost. The
measurement can be carried out as per the requirement of the organization. But, for this there
is no hard and fast rule for measuring unit. The output varies as per the industry. In some the
output is easily measured but in some cases the output cannot be measured. The quantitative
dimensions can be measured easily but where the qualitative dimensions are there, the
measurement is not possible. Where we go for different or heterogeneous employee it is more
difficult to measure the productivity. Measurement of productivity involves the problem of
expressing the related factors numerically to arrive at the mathematical expression of
productivity. The main objective behind productivity measurement is to provide management
with a concise and accurate base for comparison of actual result with expected levels of
productivity. It shows the relative worth of employee to the organization. However, in
measuring actual productivity, the following problems are generally encountered:

(a)The quality and intensity of employee-efforts cannot be measured because these are
qualitative aspects of productivity. The rough estimates can be done. The fair justice cannot
be done in this case.`
(b)Where creativity aspect is involved in performance of the job to produce innovative
product or development of new design and model of products. This takes time and there is no
guarantee of the result. The result may be or may not be there at a particular point of time.
(c) Where the output is resulted due to different systems of management, organization,
coordination or engineering. The more number of teams are involved. In this case it is
difficult to measure the efficiency of individual or a team.
(d) When the result is due different employee, the effect of one on other employee form, the
results cannot be measured for one type of employee separately.
(e) Work manufacturing processes are complex and uncommon. It is bit difficult to
understand these by other than expert persons.
(f) Proper care is to be taken for selection of productivity measures. There are different
measures used for different industries and jobs. The experts are to be consulted for selection
purpose. Over and above the legal requirements are to be fulfilled. The regulations relating to
health, safety and pollution are to be complied without fail. The selection process for
productivity measure becomes a bit difficult

46
(g) It is very difficult to develop productivity measures for multi-products with multi-inputs
are used. Further the productivity measures also vary with the changing time and how these
are going to affect productivity in future.

(h) Further, in case of service sector the output cannot be measured properly. It cannot be said
that how much has been produced by one person or team. The output can be measured in
number of customers contacted, complaints attended, customers added etc. So for service
sector the output can be measured in different form. That is different from manufacturing
sector.
(i) Management might be interested to know the productivity of their employees but it is very
difficult to know the productivity of management itself. Modern management experts focus
on effect of organizational culture on productivity. But, again it is difficult to say that how
much is the impact of culture on productivity and production.
When the productivity in different counties is compared on the basis of working hours
and price, it is difficult to give the right comparison. The working hours may vary from
country to country. Where the working hours are longer, the result will be different from the
country where working hours are short. Further, foreign exchange rate also varies from time
to time. In these cases, the productivity measurement and comparison both are a bit difficult.

47
3.6 FACTORS EFFECTING PRODUCTIVITY:

The productivity is effected by multiple factors. Sometime one or more factors play their role
to increase or decrease the employee productivity. The factors those effect the performance
or productivity are the same. Because when the productivity of individual is increased
automatically his performance is also increased. We should not get confused with the factors
affecting productivity or performance.
The management experts have classified these factors under following heads:
(a) Physical, organisational, location, and technological.
(b) Cultural and behavioural.
(c) Global influences, innovativeness, strategic alliances, liberalized policies etc.
(d) Managerial and organizational business environment.
(e) Levels of flexibility in internal employee markets and the organization of work activities –
e.g. the presence or absence of traditional craft demarcation lines and barriers to occupational
entry.
(f) individual rewards and payment systems, and the effectiveness of personnel managers and
others in recruiting, training, communicating with, and performance-motivating employees
on the basis of pay and other incentives.

The individual factors those affect the performance or productivity are listed below:
(a) Working conditions (b) Working hours
(c) Nature of job. (d) Employees competencies.
(e) Job security. (f) Welfare and social security.
(g) Training of employees. (h) Salary packages.
(i) Liberty at work to perform. (j) Quality of leadership.
(k) Motivation of employees. (l) Career development opportunities.
(m) Rewards, recognition and incentives (n) Organisational culture.
(o) Behaviour of employees. (p) Location of work.
(q) Management approach. (r) HR policies.
(s) Technology at work. (t) Business environment.
(u) Level of competition in market.

Out of the above mentioned factors some are controllable and some are
uncontrollable. The controllable factors are to be managed in line with the uncontrollable

48
factors. There should be proper match between these two then only the productivity can be
improved or maintained further. Otherwise, the objective of improving productivity cannot be
fulfilled. Special care is to be taken for uncontrollable factors like business environment,
government policies and competition. The suitable strategy is needed to match the two types
of factors. If the company wants to stay in the market the knowledge of uncontrollable factors
is necessary and further strategy is to be designed to maintain controllable factors in line with
environmental factors.
Companies focus their attention on increasing productivity. The first and foremost
thing for improving productivity, the management should understand the factors those effect
the work, behaviour of workers at work and environment in which the work is being carried
out. There are many factors that influence productivity. The pattern of influence on
productivity should be understood. By increasing the workers efforts the productivity cannot
be increased significantly in long run. The direct and indirect impact of factors on
productivity in long run should be clearly identified.
Human resource is the most important resource that effects productivity. A company
may purchase or acquire the best technology and manpower. But manpower without interest
to work, dedication to organization, and commitment to duty cannot give the expected
performance. The job performance depends upon their competencies and motivation. The
management should change their mind set and consider manpower as the most important
resource and should be taken care of properly. It is only manpower that makes the difference
in the performance. Efforts should be put to maintain talented, motivated and committed man
power in the organization.
Next the other factors like technology, working conditions, location of work, rules
and regulations, management approach, business environment etc effect the working of
persons. Productivity can be improved through different management processes like
following scientific management principles. Specifically it includes, production planning, and
control, production cost, inventory control, operation research, specialization, cost control,
budgetary control, marketing research, matching demand and supply, replacement of old
technology, preventive maintenance etc. contribute in improving productivity.
It can be concluded that there are different factors influencing the productivity. At a
particular time one factor may play role and at other time the other factor may be responsible.
Again it is difficult to say which factor has contributed how much. Generally, the factors
effecting the productivity play their role collectively.

49
3.7 FORMS OF PRODUCTIVITY:
Productivity is an overall measure that shows how efficiently the required resources
are utilized to achieve the objectives in terms of quantity and quality with reference to a point
of time. The utility of productivity ratio is very wide in an organisation. It can be used for a
person, team, department, organisation, industry and nation as a whole. It can be applied to
employee productivity, system productivity, machine productivity, plant productivity, capital
productivity, energy productivity, and so on. Productivity is an objective concept. As an
objective concept it can be measured, ideally against a universal standard. As such,
organizations can monitor productivity for strategic reasons such as corporate planning,
organization improvement, or comparison to competitors. It can also be used for tactical
reasons such as project control or controlling performance to budget.
Productivity can be expressed in different forms like partial factor productivity,
multifactor productivity, and total productivity. These forms are explained in the following
paragraphs.

(a) Productivity Partial-Factor:

While measuring the productivity only one factor is taken into account. All factors
effecting the productivity are not considered because the data are readily available pertaining
to one factor. It is known as partial factor measure of productivity, in this calculation only a
single input is considered in the ratio. The formula for partial-factor productivity can be the
ratio of total output to a single input. This formula is being utilized by the management for
their convenience as the information available relating to individual factor. Further,
management can easily find out and relate to the particular activity. On the basis of this
management can increase or decrease the individual factor easily to get the desired ratio of
productivity. If management is interested then total of all individual factors can be taken to
have multi factor productivity. Timely and prompt action can be taken by the management to
meet the requirements. This partial factor productivity can be applied to capital, energy,
machine, materials etc.

(b) Multifactor Productivity:

There are many input factors that affect the productivity. While calculating the
productivity ratio the different input factors are considered. It takes into account the factors
like employee, energy, materials and capital. These may be taken two or more at a time.
Therefore, the multifactor productivity is the ratio of total output to a total of multiple factors

50
inputs. There is no hard and fast rule that two particular factors would be considered in
productivity ratio. It depends upon the requirement of the organisation and management
approach. Employee and energy or employee and capital or all the three may be taken into
account. These factors give effect to the productivity so it is called multifactor productivity.
The data relating to the multifactor productivity are not available readily. These are to be
calculated and it is bit difficult to do so. It is time consuming also. That is why management
do not prefer unless it is compulsory.

(c) Total Factor Productivity:

When productivity is measured by taking into account the effect of all factors used in
production of goods or services. Total factor productivity is a broader gauge of productivity
and it is calculated as follows:
Total factor productivity= total of (Employee hours actually produced + Actual
machine hours produced in a given time/ total of machine and employee hours available in
time period).
Total output must be expressed in the same unit of measure and total input must be
expressed in the same unit of measure. However, total output and total input need not be
expressed in the same unit of measure. Resources are converted from one factor to the other.
For example the standards can be converted to dollars and vice versa. This is done so that a
single figure can be used as an aggregate measure of total input or output. For example, total
output could be expressed in numbers/ meter/ kilograms/litre etc., and total input could be
expressed in hours or rupees.
Total productivity ratios reflect simultaneous changes in outputs and inputs but it does
not show the relation between the each factor of input and output. It does not give the
separate factor wise effect that is why it is a broader approach. The management cannot take
any decision for improvement in the productivity by adjusting individual input factor. It is
not suitable for improvement in specific factor or area. The different forms of productivity
are used in different countries across the world. Total Factor Productivity is a measure
favoured by the Japanese for measuring the national productivity. Whereas the employee
factor productivity is accepted by In India. Employee productivity and total factor
productivity are being used separately for employees and national productivity.

51
3.8 USES OF PRODUCTIVITY MEASURE:
Productivity is a measure of efficiency to show how the result is given by utilizing the
different resources. It is a very good and helpful tool in evaluating and monitoring the
performance of an employee, machine, system, team, section, department, division,
organization, industry and national economy. It becomes the yardstick for comparison of the
effectiveness at work. It is used for finding out the comparative effectiveness of individual,
machine, team, department while performing the work. If it is not measured it is not possible
to know who is doing good work and who not. With the help of this, the problematic unit can
be picked up and remedial actions can be taken for further improvement. If it is taken care of
timely the performance would not be effected much. Otherwise in the long run the effect may
be non- recoverable.
Productivity contributes in providing the competitive advantage to the company in cut
throat competition in the market. When the performance of everyone is improved through
productivity measure, the production quantity and quality go high. The products are accepted
in the market. The sales and market share of the company improves. The company becomes
leader in the market and goodwill develops. This is the ultimate goal of every business unit.
Productivity saves time, efforts and money. It improves the effectiveness of everyone.
This contributes to excel in the performance, profits, progress and goodwill of all concerned.
Productivity measures can also be used to evaluate the performance of an entire industry or
the productivity of a country as a whole. On the basis of productivity measure the
comparative study of different economies across the world can be carried out.
Since productivity is a relative measure, for it to be meaningful or useful it must be
compared to something. For comparative study the productivity index is being prepared by
the companies. A productivity index is the ratio of productivity measured at a particular
point of time to the productivity measured in a base period. For example, if the base period's
productivity is calculated as 2 and the productivity of the following year is 3. The
productivity index will be 2/3=1.5. It shows that the productivity of the company is
improving. If it is going down then management can take the remedial action to improve the
productivity. By tracking productivity indexes over time, managers can evaluate the success
and failure of the organisation and accordingly timely decision can be taken so that the goals
of the organisation can be accomplished in time. This finally, contributes in improving the
overall effectiveness of the company in the business.

52
3.9 PRODUCTIVITY IMPROVEMENT:

Productivity improvement is the concern of every one whoever is related to the work.
This may be employee, team, division, department, organization and government for national
economy. There is no doubt that the productivity can be improved and further it can be
maintained also if proper and timely care is taken. In the competitive situation only the
company giving good performance through products and services stays in the market. It has
become very difficult to grow, stabilize and excel in the performance. It is only through good
performance and higher productivity. For improvement of productivity different
academicians, practitioners and managers have suggested many points. These points or
concepts are very simple but the implementation of these points is not very easy. A lot of
efforts and attention is needed. In implementation the changes are to be made as per the
situation, rules and regulation, available resource and employees. The productivity
improvement process should have the following steps:

(a) Setting Mission of the Organization:

To give the clarity regarding the objectives of the organization is very important. If it
is clear in the mind of people what for the organization is in the business and where it wants
to reach in due course of time, accordingly the employees will understand and work. To fulfil
the objectives of the organisation the goals are to be decided. It should be clear in mind of
everyone. The goals are to be finalized in joint meeting of management, union and
employees. There should be acceptance from all parties for smooth functioning. The goals
setting should be realistic and should not be very high to achieve. Special care should be
taken and the consultants and internal experts should be consulted. This will take everyone
into confidence and objections would not be there in future. This contributes in mental
preparation of the employees and managers. It would provide the clear guideline to the
employees and the sense of commitment would develop.

(b) Setting Goals and Performance Standards:

Once the company's mission and objectives are set then these are to be achieved. The
organizational objectives would be divided into divisional or departmental objectives. To
achieve each objective the goals are to be decided. These goals or targets are to be decided
with reference to a point of time. Further, the departmental objective should be divided into
individual objective and goals. Individual goals are to be decided in consultation with the

53
employees and their acceptance is necessary because they have to achieve the goal they
agree. To achieve the goals next is deciding the performance standards. These are to be
decided by the top management in discussion with the departmental heads and employees
concerned. The performance standards include the quality and quantity, cost, level of
responsibility to be fulfilled, leadership quality, initiative for problem solution and discipline.
Generally performance planning is often neglected at the department and individual
levels. Employees need to know how and how much they can contribute in meeting the
company and department goals. They should be given opportunity in developing the plan for
productivity improvement. The management should meet he employees at regular interval
and discuss regarding their performance, difficulties faced during the work and get the other
inputs. This can contribute in motivating the persons to take the responsibility to meet the
performance standard for achieving the goals. The goals and performance standards should
be properly and timely communicate to everyone without any delay. During the job
performance the employees should be counselled, coached and performance feedback should
be given. This would help in overcoming many difficulties faced during the work. The
performance planning and time to time review of the performance should be carried out. It
would pin point the deviations in performance and planning done. If any deviation has taken
place in the performance then the employees can be guided, trained and helped so that the
performance should not be affected. During the performance period and at the end of the year
the performance appraisal should be conducted. It should be fair and unbiased. This would be
very helpful for identification of new talents, development and remedial actions.

(c) Motivate Employees:

For getting the desired performance from the employees they should be taken care of
properly. Their motivation is very important. There are different methods of motivation of
employees. The management should understand the importance of motivation methods and
where these can be applied. The employees should be properly selected and placed on the
jobs. They should be trained on the job before assigning the job responsibility. During the job
if any new procedure of technology is replaced then they should be trained properly. They
should be placed in good salary package so that their monetary requirements can be fulfilled.
In addition to salary they should be provided with performance incentives, welfare facilities,
bonus, promotion, job and social securities. These facilities would contribute to retain the
trained persons in the job. It is difficult to get a good employee but it is more difficult to

54
retain and maintain the employee. The trained and motivated person can contribute a lot
because he is happy and committed person.
Further, the managers and supervisor should have frequent discussion between them
regarding the goals, performance standards, emerging trends in the market and the
competitive situation prevailing in the industry. They would make up the mind of the
employees in line with the requirement of the organization. Management must develop the
habit to listen the points suggested by the employees and timely action should be taken if the
suggestions are proper. The employees should be informed that everybody is useful in the
company and nobody is inevitable. Their contribution is valuable in achieving the goals of
departments and organizations. Communications must be frequent, clear, and positive and
must come from every level of management to the employees. The good performers would be
rewarded accordingly. The poor performers would be tried to improve their performance also.
Further if not improved despite of repeated sincere efforts the remedial actions would be
taken.
The performance review should be carried so that the planning, development and
correcting actions can be initiated. The higher performance should be considered to higher
pay increase, incentives and rewards, the poor performances should be treated for wage cuts,
denying facilities and dismissal. Success and achievements of the company should be
highlighted to everyone and they should be thanked accordingly. The team spirit and their
contribution should be acknowledged. All these steps would get the high level of
commitment of employees towards the company and its objectives.

(d) Identification of Strengths and Weaknesses:

In almost every organization the demographic situation of employees is changing with
the time. In past, the more number of males were working in the jobs. Female were interested
only for household activities or were not cable to do the other work. With the changing time
the demographic scene has undergone a drastic change. Due to development in education
more number of females are getting education and they started coming in jobs. Now at
national and international level the percentage of female employees is increasing. People are
coming from different caste, creed, region, religion, language and sex. The diversified
workforce is now available in most of the companies. All these people are having their own
strengths and weaknesses. These strengths and weaknesses are to be identified. The strengths
can be utilized and weaknesses can be overcomed by timely remedial actions.

55
 The employees are to be selected out of the lot applied on the basis of their merits.
The weak candidates are to be denied and capable should be taken by considering the
strengths. During the work the performance appraisal would help to find out the strengths and
weaknesses of every employee. The potentials can be identified for new future jobs or higher
responsibilities. The employees’ strengths can be considered in assigning the new jobs or
assignments. The management would take the corrective action to overcome the weaknesses
by guiding, coaching, counselling, training etc. By doing all these, the performance of the
employees would be higher. And once the performance of employees improves, the required
resources are used effectively to give the output. The productivity automatically goes high.
The objective of performance and productivity improvement can be achieved.

(e) Training and Development of Employees:

Training is the process of imparting the knowledge and skills to the persons. It gives
knowledge and skills and in turn these give confidence to the person performing the job. The
confident persons perform the jobs in a better way. The performance and productivity both
improves. If the persons are not trained on the job then they do not know the basics of the
jobs. Many difficulties are to be faced in understanding the doing the jobs. Many problems
are likely to be faced. These cannot be overcome easily. The time, efforts and money all are
wasted. To avoid all these, the importance of training is felt in the beginning and during the
job also. The development facilities also should be provided to the employees in their career.
The employees should be trained on the job and they should be provided training for
improvement of productivity also.
Productivity oriented training should focus on setting objectives, performance
standards, leadership quality in group problem solution, job knowledge and skill and
communication. Similarly the supervisors and managers also should be trained for
productivity improvement. The productivity oriented training should be designed as per the
jobs and requirement of the company. It is not going to work for all jobs and industries. It
should be tailor made according to the specific requirements. The training responsibility
should be assigned to the supervisor or manager in-charge. They should identify the need for
training of different jobs and then the training should be conducted. Further the effectiveness
of training system from productivity improvement point of view should be reviewed.
(f) Performance Appraisal:
The objectives, goals and performance standards have been fixed through mutual
discussion. These are properly communicated to all employees. They are properly guided and

56
trained on the job for giving better performance. Whenever they face problems on the job
they are helped by their supervisors and managers. Further, it becomes necessary to measure
their performance during the year. Once it is measured it can also be managed properly. The
supervisor should conduct performance appraisal in mid and end of the year. The quality,
quantity, cost involved in production, level of involvement shown, competencies exposed,
initiatives taken for problem solving and leadership quality shown in guiding or helping the
others and problems faced during the work. All these are to be measured.
On the basis of this measurement the management would get the clear picture of the
responsibility fulfilled, level of performance standards achieved, available of potentials,
strengths and weaknesses, behaviour at work etc. This appraisal would give the timely
reporting to the management regarding the performance achieved to achieve the objectives.
Here the focus is more on result rather than activity. On the basis of performance appraisal or
measurement the other management decisions like rewards, incentives, pay increments,
promotion, demotion, training, bonus, welfare facilities etc. would be taken. This would help
to channelize the efforts to improve performance and productivity of employees so that the
objectives or goals of the organization as a whole can be achieved effectively and efficiently.

(g) Future Planning, Development and Corrective Actions:

On the basis of performance appraisal the management would get the clear idea
whether the objectives of the organization are fulfilled or not. If it is done so then the existing
situation is to be maintained. If not then to improve the situation the planning is to be done
for resetting objectives, goals and performance standards. These are to be aligned in line with
the emerging trends in the market and competition. If the competency level of employees is
not found up to the mark then training and development programme are to be implemented.
Through this the knowledge and skill of employees would improve and this would contribute
in improving the performance and productivity.
Further, the employees those who have given good performance and higher
productivity, they should be motivated further to continue with the same level of
performance. If they are not motivated then they would also do the work like others. Higher
performers should be selected and given incentives, rewards and recognition etc. Their case
should be considered for higher pay increase, promotion and bonus. Those who are not
improving their performance despite of repeated efforts of management; they should be
denied increments, bonus, promotion and other facilities. They should be motivated by fear of
wage cuts, demotion and dismissal. These practices are being utilized in leading companies in

57
India and abroad. In addition to these a lot of other innovative techniques can be utilize to
motivate them to give higher performance and higher productivity. Proper and timely actions
are needed on the part of the management for productivity improvement. There is no hard and
fast rule and only on technique would work for this purpose. These may work in combination
but it is difficult to specify which technique has contributed for productivity improvement
over a particular point of time.

(h) Performance Improvement Plan:

The performance improvement plan is to be prepared and implemented timely and
properly. The importance of improvement plan should be communicated to everyone. They
would have the clear idea where it is going to be used and what would be its impact in future.
The performance is measured and timely the feedback is communicated to employees. This
would reply to the questions of employees in their mind. If plan awareness is not created then
they may not take interest in work because they do not know the uses of improvement plan.
The employees should be communicated regarding their importance in accomplishment of
objectives of the organization. The business of the company is due to the performance of
employees. Better performance means better business. They should be taken into confidence
and then the performance plan is to prepared and implemented. This would be in position to
get the whole hearted support of employees and in turn the productivity and performance
both would increase.
The productivity improvement programme can be planned and implemented with the
initiative of top management. It needs time and efforts to perform. The quality of leadership
matters a lot to bring the changes in the mind set of employees. It should be driven by the top
management. Top management should understand the importance of better quality of
performance in the competitive situation. If the management is determined then the directions
can be given to the other managers and employees. The management can take the help of
experts internal and consultant. Sometime the personnel managers may oppose this move
because they have to do a lot of work for this programme. They should be properly
convinced. If it is done then willing support is likely to come from every one. The
productivity improvement plan can be prepared and implemented properly. The expected
level of productivity can be achieved. The performance management process is to be applied
on continuous basis so that the continuity can be maintained further also.

58
 Many academicians, consultants and practitioners have advocated for different point
in this direction. Mainly William J. Stevens suggested the following steps to improve
productivity:
(i) Develop productivity measures for all operations
(ii) Look at the system as a whole and over-all productivity is more important.
(iii) Develop methods for achieving productivity improvement and timely review them also
to keep them tuned in line with organizational requirements.
(iv) Establish reasonable goals for improvement which can be achieved.
(v) Make it clear that management supports and encourages productivity improvement.
(vi) Consider incentives to reward workers for contributions.
(vii) Measure improvements and publicize them.
(viii) Don't confuse productivity with efficiency. Efficiency is a narrower concept that
pertains to getting the most out of a given set of resources; productivity is a broader concept
thatpertains to use of overall resources. For example, an efficiency perspective on moving
thelawn given a hand mower would focus on the best way to use the hand mover;
aproductivity perspective would include the possibility of using a power mower.
While taking these steps the company should not focus mainly on productivity but
other factors like quality, timing, innovation, market competition and strengths and
weaknesses of it.

59
3.10 8 Tips to Increase Employee Productivity:

Organizations have long struggled to maintain the productivity of their workforce.

Managing what employees accomplish in any given day, impacts their productivity, which is
critical to meeting corporate objectives.

1. Hire the Right People: Personal interviews can one way to identify the right candidate
and hiring decisions should be based on identifying the right person for the job. This can be
done by asking job candidates questions about their work accomplishments during the
interview process.

You should also ask to see copies of performance appraisals from former employers
so you can see what their prior bosses have documented about their work history.

2. Set Employee Goals: Employees should have specific goals that are tied to organizational
goals. It is important to always try to include the employee in the goal planning process so
they have an understanding for why the goals are written as well as the expectation for
achieving the goals.

This should include establishing a timeline for when goals are expected to be
completed.

3. Manage Distractions: Distractions at work robs your business of productivity hours every
day. Whether it is the chatty cube-mate, Internet news stories or text messaging, employees
are constantly being distracted.

Managing distractions can be sensitive, but if done well can help the employee feel
like they have choices, while holding them accountable for tasks. The best way to manage
employees and non-productive tasks, is to allow time in the day for them to socialize, text
friends, check Facebook or cruise the news headlines.

This can be done by allowing technology free time for employees to catch up on
personal emails, text messaging, Internet news or Facebook. The reality is, most employees
will do it anyway, so managing when they do it, communicates to the employee that you
recognize the importance of these activities so they don’t feel the need to hide it.

60
4. Performance Management: Employees need to be held accountable for job
responsibilities and it is the department manager’s responsibility to manage employee
performance and make sure employees are meeting job requirements. This is done by setting
and communicating clear expectations so employees understand what it is they will be held
accountable for.

5. Challenge Employees: Most employees can learn job requirements and increase their
speed of completing tasks. The manager should focus on developing and challenging them to
take on more duties as their capacity increases. Tip: Make sure you keep goals and job
descriptions current so they reflect changing responsibilities.

6. Foster Engagement: Engaged employees are more likely to be productive than employees
who are just watching the clock. Creating systems and processes to support a strong culture
of engagement can help maximize employee efforts.

7. Reward Good Performance: It is important to have a good reward system for meeting
objectives and going above and beyond the call-of-duty. Rewarding good performance is a
great motivator to increase employee productivity.

8. Make the Tough Call: Unfortunately there are some employees who will only do bare the
minimum and rarely go above and beyond. This is a mind-set that can be difficult to change.
Consequently, there may be times when you just need to make the tough call and remove
these employees. It is important to do this quickly, because unproductive employees tend to
demoralize other employees who are pushing their productivity limits.

Finally, it is important to remember that most employees come to work with the intent
of doing a good job. How the organization establishes systems and processes for productivity
can affect their ability to do just that. Managing the process takes time but can offer great
benefits for the effort.

3.11 ROLE OF EMPLOYEES IN SERVICE SECTOR:

Service is the facility that has been provided by the service providers to the customers
for a price. Services are defined as any facility or benefit that one party offer to another that is
essentially intangible and does not effect the transfer of ownership. The facility offered by the

61
service provider is intangible and it can be availed. But it cannot be carried away, touched or
transferred from providers to the customers. The ownership is not transferred. For example
service of a teacher, barber, restaurant, STD booth etc. In some cases the services are offered
purely and in some cases offered with the help of tangible products. The major characteristics
of a service are intangibility, inseparability, ownership, perishability, and heterogeneity.
Goods and services are different from each other. For services the marketing mix
includes product, price, promotion, placement, people, process, and physical evidence. Here
the interest in this topic is people who provide the services to the customer. The people or
employees who directly provide the services to the customers are more important in service
delivery. The presence of provider is necessary without it the service cannot be provided. The
role played by them is very crucial from business point of view.
Out of 7Ps of elements of service marketing mix, people are the most important.
When they meet, explain, deal and provide the service then their behaviour, competencies,
promptness, initiatives to handle the customers and motivation affect the services offered.
They are in direct contact with the customers so they represent the organization. They
directly affect the quality of service offered and satisfaction of customers from the services
availed. They are the marketers for customers. The customers know the persons direct in
contact and do not know the owner of the company. They act as marketers for their company.
Out of products, goodwill, physical evidence, name of company and employee the most
important is employee. Because it matters how does he provides the services. It finally
contributes to the perfect function, quality and satisfaction of customers. That is ultimate
objective of service marketing. It can be said the employees are the most important resource
for the marketing company. The special care should be taken to recruit, train, motivate and
maintain them.
In present time it has been realized by the employers and managers that the employees
are the most important resource. Services are provided at remote places also so they cannot
be available there. The employees are deployed for providing services. They meet, interact
and deal with the different customers. They bring the business for the company. They are
who contribute in getting business, increasing and retaining customers, quality of service and
satisfaction of customers. Finally the profitability and goodwill of the organization will go
higher. They are who make or break the business. Without the qualified, trained and
motivated employees the goals decided cannot be fulfilled. Management should change the
attitude towards employees. They should be considered as partners in the business and then

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they should be dealt. In the competitive situation if management’s interest is to take the
competitive advantage over the rivals in business the support of employees is must.
In banking sector the different types of services are being offered. The owners of the
banks are located at one place. But their branches are scattered and located across the
country. The jobs of offering the services are assigned to employees. The performance they
are giving on the job matters a lot. That affects the customers’ satisfaction, getting and
retaining existing customers, complaints handling, targets achieved, sales turnover, profits,
market shares and good will of the company. The performance of employees is being focused
not only in banking but every service sector. The better performance gives satisfaction to the
customers. The services are to be provided with minimum processing and waiting time,
proper response, promptness and desire to handle more and more customers. With these
objectives, the employees are selected on merit basis.
Next the other factors like technology, working conditions, location of work, rules
and regulations, management approach, business environment etc affect the working of
persons. These are to be taken care of. Productivity can be improved through different
management processes like following scientific management principles.

63
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

64
Questionnaire:

1. Do you agree or disagree with the statement “I’ve been provided with the opportunity to
upgrade myself and learn new skills.”

Series Options Frequency Percentage (%)

a Strongly Agree 9 38
b Agree 13 52
c No opinion 01 04
d Disagree 01 04
e Strongly disagree 01 04
Total 25 100

Percentage
60

50

40

30
Percentage
20

10

0
Strongle Agree Agree No Opinion Disagree Strongly
disagree

INTERPRETATION:

Majority of employees agreed with the statement that they have been provided with
the opportunity to upgrade themselves and learn new skills. This develops the potentials of
employees and make them work efficiently which in turn makes them productive.

65
2. Does your workplace uses the latest technology and techniques to increase the work
efficiency of employees?

Series Options Frequency Percentage (%)

A Always 06 24
B Often 12 48
C Sometimes 06 24
D Rarely 00 00
E Never 01 4
Total 25 100

Percentage (%)
60

50

40

30
Percentage (%)

20

10

0
Always Often Sometimes Rarely Never

INTERPRETATION:

From the above graph it is clear that, the workplace uses the latest technology and
techniques to increase the work efficiency of employees that makes them work more
productively.

66
3. Does your company do career planning for employees who work productively so that there
will beclear career paths for them?

Series Options Frequency Percentage (%)

a Always 06 24
b Often 09 36
c Sometimes 07 28
d Rarely 02 08
e Never 01 04
Total 25 100

Percentage
40

35

30

25

20
Percentage
15

10

0
Always Often Sometimes Rarely Never

INTERPRETATION:

From the above graph, we can say that the company oftendoes career planning for
employees so that there will beclear career paths for them. It motivates them to work more
productively to avail these sort of benefits.

67
4. Do your managers lead by example and create a positive and productive work
environment?

Series Options Frequency Percentage (%)

a Always 05 20
b Often 06 24
c Sometimes 08 32
d Rarely 04 16
e Never 02 08
Total 25 100

Percentage
35

30

25

20

Percentage
15

10

0
Always Often Sometimes Rarely Never

INTERPRETATION:

From the above graph, we can interpret that only sometimes the managers lead by
example and create a positive and productive work environment. So, this may decrease the
productivity levels of employees to some extent.

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5. Does your company provide training and development for the employees?

Series Options Frequency Percentage (%)

a Always 08 32
b Often 04 16
c Sometimes 10 40
d Rarely 02 8
e Never 01 4
Total 25 100
’

Percentage
45

40

35

30

25

20 Percentage

15

10

0
Always Often Sometimes Rarely Never
T
KNOW

INTERPRETATION:

The company always provides training to the employees to keep them aware and
updated with the new technologies and methodologies so that they always stand at a
competitive edge in the market in their productive contributions to the organisation.

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6. Does your company maintain good physical working conditions and environment?

Series Options Frequency Percentage (%)

A Always 05 20
B Often 10 40
C Sometimes 07 28
D Rarely 03 12
E Never 00 00
Total 25 100

Percentage
45

40

35

30

25

20 Percentage

15

10

0
Always Often Sometimes Rarely Never

INTERPRETATION:

From the above graph, we can say often, the company provides and maintains good
physical working conditions to help employees work comfortably and efficiently.

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7. Does your management provide clear guidance and support in your daily tasks?

Series Options Frequency Percentage (%)

a Yes 20 80
b No 05 20
Total 25 100

Percentage
90

80

70

60

50

Percentage (%)
40

30

20

10

0
Yes No

INTERPRETATION:

From the above graph, it is clear that the management provide clear guidance and
support in the daily tasks of employees. It makes employees work with flow contributing to
the productivity of themselves which in turn contributes to organisation’s productivity as a
whole.

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8. Do people in your workplace treat each other well and value each other’s ideas?

Series Options Frequency Percentage (%)

a Always 07 28
b Often 08 32
c Sometimes 07 28
d Rarely 02 08
e Never 01 04
Total 25 100

Percentage
35

30

25

20

Percentage
15

10

0
Always Often Sometimes Rarely Never

INTERPRETATION:

From the above graph, it is clear that the employees often treat each other well and
value each other’s ideas at work place. This creates a positive accepting and friendly
environment among peers that develops healthy organisation climate supporting them to
work productively.

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9. Does your workplace recognise and reward people whose efforts support your firm’s
goals?

Series Options Frequency Percentage (%)

a Yes 19 76
b No 06 24
Total 50 100

Percentage
80

70

60

50

40
Percentage (%)

30

20

10

0
Yes No

INTERPRETATION:

From the above graph, we can say that workplace make recognise and reward people
who put their efforts to support the firm goals. This motivates employees to work
productively to gain the rewards and recognitions from the company.

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10. Does your workplace regularly analyse work processes and work flows?

Series Options Frequency Percentage (%)

a Always 06 24
b Sometimes 18 72
c Never 00 0
d Don’t Know 01 4
Total 25 100

Percentage
80

70

60

50

40
Percentage
30

20

10

0
Always Sometimes Never Don't know

INTERPRETATION:

From the above graph, it is clear that only sometimes the workplace is analysing the
work processes and workflow of the employees. A proper analysis of work processes and
work flow fills the gap between employees performance and goals of the company. So, its
better to analyse often to maintain the productivity levels of their performance balanced.

74
11. Do staff regularly share information between teams and work areas?

Series Options Frequency Percentage (%)

a Always 10 40
b Sometimes 11 44
c Never 03 12
d Don’t know 01 4
Total 25 100

Percentage
50
45
40
35
30
25
Percentage
20
15
10
5
0
Always Sometimes Never Don't Know

INTERPRETATION:

From the above graph, we can observe that the staff share information between teams
and work areas only sometimes which restricts the performance of employees in lack
of information that ultimately effects their productivity.

75
12. Doesyour company provides flexi-timings for employees ?

Series Options Frequency Percentage (%)

a Yes 08 32
b No 17 68
Total 25 100

Percentage
80

70

60

50

40

30

20

10

0
Yes No

Percentage

INTERPRETATION:

The company doesn’t provide flexi-timings for employees to work in their own
comfortable time zone.

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13. Does your workplace gather feedback from staff on your work environment and any ideas
staff have for improving it?

Series Options Frequency Percentage (%)

A Always 02 8
B Often 12 46
C Sometimes 08 32
D Rarely 02 8
E Never 01 4
Total 25 100

Percentage
50
45
40
35
30
25
Percentage
20
15
10
5
0
Always Often Sometimes Rarely Never

INTERPRETATION:

The workplace very often gathers feedback from staff at work environment and
considers the ideas that staff have to improve it. This motivates employees to work efficiently
when their ideas get implemented.

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14. Does your company celebrate the moment of success by going to trips when certain
targets are cracked?

Series Options Frequency Percentage (%)

A Always 06 24
B Sometimes 14 56
C Never 03 12
D Don’t know 02 8
Total 25 100

Percentage
60

50

40

30
Percentage

20

10

0
Always Sometimes Never Don't Know

INTERPRETATION:

From the above graph, it is clear that only sometimes the company celebrates the
moment of success along with employees. Hence, it motivates the employees only to some
extent to work productively.

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15. Are employees allowed to participate in decision making?

Series Options Frequency Percentage (%)

a Yes 18 72
b No 07 28
Total 50 100

Percentage
80

70

60

50

40
Percentage (%)

30

20

10

0
Yes No

INTERPRETATION:

From the above graph, it is clear that the optimum number of employees are allowed
to participate in the decision making. This helps employees to express their views and
problems and get them resolved by making wise decisions. This highly encourages the
employees to work effectively through satisfaction.

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16. Do you feel a sense of helplessness at work?

Series Options Frequency Percentage (%)

A Always 05 20
B Sometimes 16 64
C Never 02 8
D Don’t know 02 8
Total 25 100

Percentage
70

60

50

40

Percentage
30

20

10

0
Always Sometimes Never Don't Know

INTERPRERTATION:

From the above graph, we can say that sometimes the employees feel sense of
helplessness at work. This reduces their productivity and the organisation should be careful
enough to look after such issues.

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17. What are the objectives of measuring productivity of employees?

Series Options Frequency Percentage (%)

a Search of suitable technology 04 16
b Improve working efficiency 07 28
c Reducing operation costs 02 8
d Improve overall profitability and 02 8
goodwill
e All the above 10 40
Total 50 100

Percentage
45
40
35
30
25
20
Percentage
15
10
5
0
Search of Improve Reducing Improve overall All the above
suitable working operation costs profitability &
technology efficiency good will

INTERPRETATION:

All the four search of suitable technology, improve working efficiency, reducing
operation costs, improve overall profitable and goodwill are the objectives of measuring the
productivity of employees. Among them, improving the work efficiency acts as the most
important objective for measuring the productivity of employees.

81
18. Which factors effect the employee’s productivity in your company?

Series Options Frequency Percentage (%)

a Physical working conditions 03 12
b Use of technology 02 8
c Training and Development opportunity 02 8
d Adequate Compensation 02 8
e Favourable Management attitude 02 8
f All the above 14 56
Total 25 100

Percentage
60
50
40
30
20
10
Percentage
0

INTERPRETATION:

From the above graph, it is clear that all the five factors mentioned above affect the
employee’s productivity in the company.

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19. How is productivity improved in your company?

Series Options Frequency Percentage

(%)
A Setting missions. goals and performance standards 02 8
B Motivating Employees 03 12
C Training and development 02 8
D Performance appraisal 02 8
E Future performance development plan 02 8
F All the above 14 56
Total 25 100

Percentage
60
50
40
30
20
10 Percentage
0

INTERPRETATION:

All the 5activities mentioned above helps to improve the productivity in the company.

83
 CHAPTER-5
FINDINGS & SUGGESTIONS

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5.1 FINDINGS:

From the analysis in KARVY, Employee Productivity plays an important key role in
the organization.

 Majority of the employees said that company often maintains good physical working
conditions.
 The employees share information between teams and work areas only at times.
 The work place often gathers feedback from staff at work environment and considers
the ideas that staff has to improve it.
 Company does not provide flexi-timings for employees
 Employees feel that only at times, the company celebrates the moment of success
along with them.
 Most of the employees shared that company often uses latest technology and
techniques to increase their work efficiency.

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5.2 SUGGESTIONS:

 It is better if the company always maintains good physical working conditions to

make employees work comfortably.
 The workplace should always support the innovative thinking and make use of the
new ideas because one effective idea may increase the productivity to a better extent.
 The employees must always share the information between the teams and work areas,
to maintain better work relationship among the peer groups.
 It is always advisable for organisations to celebrate moment of success along with
employees in any form that ultimately drives employees to work productively to
celebrate such moments.
 It is always good to provide flexi-timings for employees to tap their maximum
potentials.
 The company should always use the latest technology and techniques to get the
productive results from employees.

86
5.3 CONCLUSION

At a glance, the report contains contents such as introduction to employee

productivity, its significance and need of employee productivity, evaluation and benefits of
employee productivity. It includes the methods opted for collection of data, employee
productivity at the organization and analysis of the data collected. It also mentions the scope
and objectives of the study.

The project has been carried out in the context of financial sector, where the need for
employees’ performances has become mandatory for the management to ensure effective and
efficient steps to reach their goals. The challenge faced by the organization adds utmost
difficulty to retain employees with high productivity. Hence it is advisable that the
management makes timely appraisals and provides increments accordingly.

Based on the analysis it is clear that the stress levels, health, and productivity of
people in their workplace can be greatly influenced by the environment and physical work
space they occupy on a daily basis. It is important to continue to educate the business
community regarding the direct benefits of providing an improved work environment. Good
working environments can help employers recruit and retain well-qualified employees, and
any improvements in the well-being of employees are in the best interests of the employers
themselves.

So, I conclude that employee productivity plays a key role because they are the assets
to the organization in every sector at each and every aspect of the organization.

87
5.4 ANNEXURE

Dear sir/madam,

I am K. Sai Saranya, student of Post Graduate Diploma in Management,

,Integral Institute of Advanced Management,Visakhapatnam conducting this survey titled
“Study on Employee Productivity” in KARVY. As per my project work in PGDM course,
i request you to kindly fill up the following questionnaire by giving your free and frank
option.

1. Do you agree or disagree with the statement “I’ve been provided with the opportunity to
upgrade myself and learn new skills.”

a. Strongly Agree b. Agree c. No opinion d. Disagree e. Strongly disagree

2. Does your workplace uses the latest technology and techniques to increase the work
efficiency of employees?

a. always b. often c. sometimes d. rarely e. never

3. Does your company do career planning for employees who work productively so that there
will beclear career paths for them?

a. always b. often c. sometimes d. rarely e. never

4. Does your managers lead by example and create a positive and productive work
environment?

a. always b. often c. sometimes d. rarely e. never

5. Does your company provide training and development for the employees?

a. always b. often c. sometimes d. rarely e. never

6. Does your company maintain good physical working conditions and environment?

a. always b. often c. sometimes d. rarely e. never

7. Does your management provide clear guidance and support in your daily tasks?

a. yes b. no

88
8. Do people in your workplace treat each other well and value each other’s ideas?

a. always b. often c. sometimes d. rarely e. never KNOW

9. Does your workplace recognise and reward people whose efforts support your firm’s
goals?

a. Yes b. No

10. Does your workplace regularly analyse work processes and work flows?

a. Always b. Sometimes c. Never d. Don’t know

11. Do staff regularly share information between teams and work areas?

a. Always b. Sometimes c. Never d. Don’t know

12. Does your company provides flexi-timings for employees ?

a. Yes b. No

13. Does your workplace gather feedback from staff on your work environment and any ideas
staff have for improving it?

a. always b. often c. sometimes d. rarely e. never

14. Does your company celebrate the moment of success by going to trips when certain
targets are cracked?

a. Always b. Sometimes c. Never d. Don’t know

15. Are employees allowed to participate in decision making?

a. Yes b. No

16. Do you feel a sense of helplessness at work?

a. Always b. Sometimes c. Never d. Don’t know

17. What are the objectives of measuring productivity of employees?

a. Search of suitable technology b. Improve working efficiency

c. Reducing operation costs d. Improve overall profitable and goodwill e. All the above

89
18. Which factors do affect the employee’s productivity in your company?

a. Physical working conditions b. Use of technology c. Training and Development

opportunity d. Adequate Compensation e. Favourable Management attitude

f. All the above

19. How is productivity improved in your company?

a. Setting missions. goals and performance standards b. Motivating Employees

c. Training and development d. Performance appraisal e. Future performance

development plan f. All the above

Thank you for your valuable time.

Name: Age:

Occupation: Gender:

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 BIBILIOGRAPHY

BOOKS REFERRED:

 Human Resource Management “N.G.Kale,Robert L Mathis and John H.Jackson”.

 Personnel Human Resource and Personal Management by “P.Subbarao”.
 Human Resource Development by “Sachin Gupta” and “Santosh Gupta”.
 Research Methodology by Dr.C.R.Kothari (2008).

WEBSITES:

 www.karvy.com
 www.managementstudyguide.com
 www.bankofinfo.com
 www.hr.com
 www.ukessays.com

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