31-05-2013, 04:30 PM
A STUDY ON EMPLOYEE ENGAGEMENT AT SAKTHI FINANCE LIMTED, COIMBATORE
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ABSTRACT
In today’s corporate world, no organization is ready to lose its human resource strength since they are in great demand. The engagement of employees plays a vital role both in the development of employees and in the organizational development. Any organization, so as to achieve the competitive edge has to strengthen its human resource in such a way that its employees are outperforming the others. To reach this significant mark, the organization has to focus on engaging the employees to a greater extent.
A study on employee engagement was undertaken at Sakthi finance ltd, Coimbatore. The study was carried out for a period of two months and the sample size taken was 60 in numbers. Structured questionnaire were administered to the given samples and simple percentage analysis has been made to show the outcomes of each question that was asked. Weighted arithmetic mean was used to find out the factors which contribute employee engagement. Few suggestions have been made to the organization in order to increase the engagement level of the employees.
INTRODUCTION TO INDUSTRY
Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions are not allowed to take deposits from the public. Nonetheless, all operations of these institutions are still exercised under bank regulation.
However this depends on the jurisdiction. Non-Banking Financial Company was a company incorporated under The Company Act, 1956 and conducting financial business as its principal business.
In contrast, companies incorporated under the same act but conducting other than financial business as their principal business are known as non-banking non-financial companies. NBFCs are different from banks in that an NBFC cannot accept demand deposits, issue checks to customer, or insure deposits through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
In India, the non-banking financial sector comprises a multiplicity of institutions, which are defined under Section 451 (a) of The Reserve Bank of India Act, 1934. These are Equipment Leasing companies (EL), Hire Purchase companies (HP), Investment companies, Loan Companies (LCs), Mutual Benefit Financial Companies (MBFCs), Miscellaneous Non-Banking Companies (MNBCs), Housing Finance Companies (HFCs), Insurance Companies (ICs), Stock Broking Companies (SBCs) and Merchant Banking Companies (MBCs). Non-banking companies which conduct primarily financial business and belong to none of these categories were called as Residuary Non-Banking Company (RNBC).
SERVICES PROVIDED
NBFCs offer all sorts of banking services such as loans and credit facilities, private education funding, retirement planning , trading in money markets, underwriting stocks and shares, TFCs and other obligations. These institutions also provide wealth management such as managing portfolio of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non-bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies. However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments. NBFCs provide services not well suited for banks.
ABOUT COMPANY
Sakthi Finance Limited was promoted by Dr.N.Mahalingam during the year 1955 in the name of “The Pollachi Credit Society Private Limited”. The Company was later converted into a Public Limited Company as” Sakthi Finance Limited” on 27 July 1967. The company is engaged in the retail finance business. The company came out with its first public issue of equity shares in 1984 and rights issues in 1986. The second and third rights issues were floated in 1993 and 1995 with over-whelming response from inverstors.The Paid up share capital of the company as on 2006-2007 is Rs.2007.13lakhs. In the year 1994, the company obtained credit rating for fixed deposit program through ICRA and was rated ‘MA’. Later in the year 1995 the rating was upgraded from ‘MA’ to ‘MA+’. The grading of the company for fixed deposit program is ‘MA-‘at present.
Company’s business currently involves acceptance of deposits, non-convertible debentures, HP financing of commercial vehicles, machinery, etc… Mortgage financing and other finance related activities with its main focus on the financing of used commercial vehicles are its main leading activities.
The total deposits mobilized by the company crossed Rs 100crore marks in the year 1991.The stock on hire has grown steadily over the years from Rs 203.60lakhs in 1984 to Rs 17321.14 in the year 2006. In compliance of the regulations, the company reduced the deposit base to less than Rs 100crore and the deposit as on 31st march 2007 stood at Rs 8186.11lakhs. At present the company has 38 branches in Tamilnadu, Kerala, Karnataka and Andrapradesh specializing in leading and 20 branches in the buzz of accepting resources and leasing out lockers.
NEED FOR THE STUDY
This study will enable the employee and the organization to know about where they stand in the level of employee engagement in the organisation. Through this study, the opinion, satisfaction level of the employees can be known towards the factors which is important for the employee engagement.
It will also help to indicate the extent to which employees put their best for the benefit of the organization and how they understood the employee engagement factors in the work place. It helps the organization to improve their effectiveness in providing satisfaction and engagement level.To demeostrate the overall value and worthy of employee engagement.
SCOPE OF THE STUDY
This study is focusing on the employee’s opinion and views on level of employee engagement they have at sakthi finance limited. This study will help the organisation on how to improve the exisiting factors which makes the employee to engage , also it will put forward some valuable suggestion of employees on how they expect the organization must be and what they lack in and how to improve the factors which forms the base for employee engagement. So that it would satisfy employees which will in turn help the organisation to achieve its goals more effectively and effeciently.