Summer Training Project Report

On

The Study of Company Overview: Exploring the Host Organization's

HR Practices and Talent acquisition
At
Larsen & Toubro Finance Ltd

Submitted in partial fulfilment of the requirements for the award of the

degree of

Masters of Business Administration

Submitted by Submitted to

Satyam Tiwari Mr Rahul Srivastava

Semester -3 (Assist. Professor)
Roll no.
2200110700184

UNITED INSTITUTE OF MANAGEMENT

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A-31 UPSIDC Industrial Area, Naini, Prayagraj – 211010Ph. 0532–2686070. 2686090
Fax 0532-2687147

Certificate
Summer Training Project Report – 2023

This is to certify that Mr. SATYAM TIWARI

Roll No 2200110700184, student of MBA 3 rd Semester of our institute has undergone
Summer Training as per details mentioned below:-
 Organization - Larsen & Toubro Ltd. (Finance)

 Project/Title-The Study of Company Overview: Exploring the Host Organization's HR

Practices and Talent acquisition.
He / she has carried out the training under my supervision and has completed the same
inconformance with / partial fulfillment of the provisions of AKTU, Lucknow. The work is
original and has not been submitted anywhere else in any manner.

Signature……………………………………
Name - Mr/Ms/Dr…………………………….
Project guide
Department of Business Administration
Date…………………………………………..

Countersigned

Signature…………………
(Prof K K Malviya)
Principal
Date…………..……..……

Affiliated to:

Dr APJ ABDUL KALAM. TECHNICAL UNIVERISTY, LUCKNOW

Noida Campus : 50, Knowledge Park III. Greater Noida. G.B. Nagar Ph: 0120-3230169. 2322209 Fax : 2322208

Corporate Office : 53, Leader Road, Allahabad-211003 Ph : 0532-2402951-55 Fax : 0532-2401865

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 Executive Summary
In the realm of contemporary business dynamics, the Human Resource function stands as a

pivotal driver in shaping an organization's success. This internship experience at Larsen &

Toubro Finance Ltd (L&T Finance) has provided an invaluable opportunity to immerse

oneself in the intricacies of HR practices and talent acquisition strategies within a dynamic

financial services conglomerate. Over the course of 45 days, this report endeavors to present

an insightful exploration of the host organization's HR practices, with a particular focus on

talent acquisition, in the geographical expanse of Haryana, Punjab, and Rajasthan. The

research methodology comprises the collection of primary data through a comprehensive

questionnaire, administered to candidates who have undergone the hiring process at L&T

Finance. Through this report, we aim to not only decipher the company's unique HR

landscape but also shed light on the broader implications and regional variations in HR

practices and talent acquisition strategies across these three North Indian states.

As the foundation of any thriving organization, the HR function plays a critical role in

shaping corporate culture, enhancing employee engagement, and driving organizational

growth. L&T Finance, a leading player in the financial services sector, recognizes the

paramount importance of an efficient HR department in maintaining its competitive edge.

This report seeks to unravel the nuances of L&T Finance's HR practices, delving into the

methodologies and strategies employed for talent acquisition, particularly within the diverse

and vibrant landscapes of Haryana, Punjab, and Rajasthan. The internship experience

involves an extensive data collection process, wherein responses from candidates who have

interacted with L&T Finance during their hiring journey are analyzed to gain a

comprehensive understanding of the company's HR practices. By examining the real-world

challenges and opportunities that emerge from this region-specific HR lens, we aim to

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provide valuable insights that can inform and potentially optimize HR strategies not only

within L&T Finance but also in the broader context of the financial services sector.

In the pursuit of excellence, organizations continually evolve their HR practices to align with

their strategic objectives. The landscape of talent acquisition, especially in a diverse country

like India, presents a multifaceted challenge that demands a nuanced approach. By focusing

on the states of Haryana, Punjab, and Rajasthan, this report aims to dissect regional variations

in HR practices and talent acquisition strategies, showcasing the adaptability and

responsiveness of L&T Finance to the unique characteristics of each region. Through

empirical data and qualitative analysis, we intend to draw meaningful conclusions that can

guide the organization's HR decisions and potentially serve as a reference point for similar

financial institutions operating in Northern India. As we embark on this journey of

exploration, the following sections will delve into the specific components of L&T Finance's

HR practices and talent acquisition strategies, seeking to provide a holistic view of the

company's approach in nurturing its most valuable asset – its people.

Satyam Tiwari

MBA 3 SEMESTER

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 Declaration
I undersigned Satyam Tiwari a student of United Institute of Management MBA III Semester

Declare that summer training project report titled

“The Study of Company Overview: Exploring the Host Organization's HR Practices and

Talent acquisition” is a result of my own work and my indebtedness to other work

publications, references if any have been duly acknowledged. If I am found guilty of copying

and other reports or published information and showing as my original work, I understand that

I shall be liable and punishable by Institute or University, which may Fail in examination,

repeat study and re submission of the report or any other punishment that institute and

university may decide.

Signature:

Name of Student: Satyam Tiwari

Student Roll no: 2200110700184.

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 Acknowledgment

Presentation inspiration and motivation has always played a key role in the success of any
venture.

I express my sincere thanks to Prof. K. K. Malviya, Principal, of United Institute of

Management.

I pay my deep sense of gratitude to Dr. Rohit Kumar Vishwakarma, HOD of UIM to
encourage and guide me in of United preparing this report I am also helpful to my friends,
parents and siblings in helping me and completing this report

I feel to acknowledge my indebtedness and a deep sense of gratitude to my guide Assistant

Prof. Rahul Srivastava whose valuable guidance and supervision has helped me in completing
this report.

Satyam Tiwari

2200110700184.

(MBA 3 SEMESTER)

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 Preface
This report documents my enriching journey as a Human Resource intern at Larsen & Toubro

(L&T) Company during the summer of 2023. It encapsulates my hands-on experience,

insights gained, and lessons learned while immersing myself in the dynamic world of human

resource management within one of India's leading engineering conglomerates.

L&T, a renowned name in the engineering and construction industry, has always stood as a

beacon of innovation, excellence, and sustainable growth. During my time as an intern, I had

the privilege to be a part of L&T's Human Resource team, an integral force responsible for

nurturing talent, fostering a thriving work environment, and driving the organization's success

through its people-centric approach.

This report is designed to offer a comprehensive overview of the tasks, projects, and

experiences I undertook during my internship. It provides an insight into L&T's HR

strategies, practices, and policies, shedding light on how they contribute to the company's

operational efficiency and employee well-being.

Throughout the internship, I worked closely with HR professionals who generously shared

their expertise, guidance, and mentorship. Their insights not only contributed to my

understanding of the HR field but also reinforced my passion for fostering a harmonious

relationship between employees and the organization.

As you navigate through the pages of this report, you will find a detailed exploration of

various facets of HR management, including talent acquisition, employee engagement,

performance management, diversity and inclusion, and more. Each section presents my

observations, analyses, and reflections on the activities I was involved in, as well as their

broader implications for both L&T and the HR industry at large.

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I extend my heartfelt gratitude to everyone at L&T who supported and facilitated my

internship experience. Their openness to share knowledge, encourage exploration, and

engage in meaningful conversations has undoubtedly enriched my understanding of HR

practices.

I hope this report serves as a valuable resource for readers interested in gaining insights into

the intricacies of HR management within a prestigious organization like L&T. May it inspire

future interns, professionals, and academics to delve deeper into the world of human resource

management and its profound impact on organizational success.

Satyam Tiwari

United Institute of Management

Date:

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Table of Content

Executive Summary......................................................................................................................... 4
Declaration ...................................................................................................................................... 6
Acknowledgment ............................................................................................................................. 7
Preface ............................................................................................................................................. 8
Chapter -1 ...................................................................................................................................... 12
Objective of Study ......................................................................................................................... 12
Objective of Study ....................................................................................................................... 13
Chapter- 2 ...................................................................................................................................... 14
Review of literature ....................................................................................................................... 14
HIGHLIGHTS ........................................................................................................................... 16
Chapter- 3 ...................................................................................................................................... 27
Overview of Company ................................................................................................................... 27
Title and Introduction .................................................................................................................. 28
Background of L&T Ltd................................................................................................................. 29
Structure ..................................................................................................................................... 29
Major subsidiaries ....................................................................................................................... 30
Awards and recognition............................................................................................................... 32
Outlook for FY24.......................................................................................................................... 33
CHAPTER- 4 ................................................................................................................................. 36
Description of the Organization .................................................................................................... 36
Growth Journey of L&T Finance ................................................................................................... 38
Last 4 year’s financials of L&T Finance Ltd.................................................................................... 40
Business Environment ................................................................................................................. 46
Digital and Data Analytics ............................................................................................................ 50
CHAPTER- 5 ................................................................................................................................. 53
HUMAN RESOURCE MANAGEMENT..................................................................................... 53
Human Resources Management in L&T Finance .......................................................................... 54
Policies and programs for employees........................................................................................... 57
Initiatives towards building future leaders ................................................................................... 58
CHAPTER- 6 ................................................................................................................................. 59
RESEARCH METHODOLOGY .................................................................................................. 59
Introduction ................................................................................................................................ 60

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 The nature of research ................................................................................................................ 60
The characteristics of good research............................................................................................ 60
Research philosophy.................................................................................................................... 61
Methods of collecting data .......................................................................................................... 61
SCOPE OF THE STUDY .................................................................................................................. 63
RESEARCH METHODOLOGY ......................................................................................................... 63
TOOLS USED ................................................................................................................................ 63
Research Design .......................................................................................................................... 64
Objectives ................................................................................................................................... 64
Literature Review ........................................................................................................................ 64
Research Methodology ................................................................................................................ 65
Sample Design ............................................................................................................................. 66
Limitations................................................................................................................................... 71
CHAPTER – 7 ............................................................................................................................... 73
DATA ANALYSIS ........................................................................................................................ 73
Data Analysis Report for Human Resource Hiring Talent Acquisition in L&T Finance .................... 74
CHAPTER- 8 ................................................................................................................................. 98
RECOMMENDATIONS............................................................................................................... 98
CHAPTER- 9 ............................................................................................................................... 101
CONCLUSION............................................................................................................................ 101
References .................................................................................................................................... 104

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 Chapter -1
Objective of Study

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Objective of Study
 To gain a comprehensive understanding of various human resource management
practices, policies, and strategies within the organization.
 To observe and participate in the organization's recruitment and selection processes,
understanding how talent is sourced, assessed, and hired.
 Day to day activities of Recruitment—Shadowing, Planning, and Execution.

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 Chapter- 2
Review of literature

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How does human resource management influence organisational
performance? An integrative approach-based analysis.

By Anastasia A. Katou

International Journal of Productivity and Performance Management

Article publication date: 10 July 2017

Abstract

Purpose

Drawing on the contingency perspective between business strategies and human resource
(HR) practices, the purpose of this paper is to examine the effects of human resource
management (HRM) system (which integrates both content and process of HR practices) on
both proximal organisational outcomes (such as job satisfaction, motivation, and
organisational commitment) and distal organisational outcomes (such as employee
engagement, organisational citizen behaviour (OCB), co-operation among employees,
intention to quit, and operational performance).

Design/methodology/approach

The analysis is based on a sample of 996 Greek employees working in 108 private
organisations and the statistical method employed is structural equation modelling with
bootstrapping estimation.

Findings

The results indicate that HRM content is more positively related to job satisfaction and
motivation and less related to organisational commitment than HRM process. Moreover,
HRM system is sequentially related to organisational outcomes (both directly and indirectly)
and significantly influences employee job satisfaction and motivation, as well as OCB and
co-operation among employees, and operational performance.

Research limitations/implications

The data were collected using a questionnaire at a single point in time, and thus, not allowing
dynamic causal inferences. Considering that Greece is experiencing a severe financial crisis,
the findings from this unique context may not generalise across other contexts.

Practical implications

The core messages to decision makers are that employee development and rewards are the
major dimensions of the content of an HRM system and that consistency and distinctiveness
are the principal features of the process of an HRM system, even in cases where the
organisation is operating under an economic crisis environment.

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 Volunteer selection at a major sport event: A strategic Human
Resource Management approach
By Graham Cuskelly, Liz Fredline, Eunjung Kim, Shane Barry &Pam Kappelides

Article publication date: 29 Mar 2021

ABSTRACT

Volunteers have long been regarded as an essential part of the staging major sport events both
to encourage community participation and to contain labour costs. Major sport events often
attract a large pool of applicants which exceeds the number of volunteer positions available.
Selecting the best qualified applicants for available positions requires volunteer selection
processes that are fair, effective, and efficient from both the volunteer and event organising
committee perspectives. Using a Strategic Human Resource Management (SHRM) approach,
the authors investigated factors that predicted the selection of applicants interviewed for
volunteer positions from the perspective of a major sport event organiser. Using deidentified
data from all volunteer applications (n = 53,234) for the 2018 Gold Coast Commonwealth
Games, the authors identified a number of factors that predicted the likelihood of an applicant
being selected for an interview for a volunteer position. SHRM principles were applied to
volunteer selection decisions but in a limited way. The authors found some evidence of links
between volunteer selection decisions and the overarching strategies of the Games. However,
these decisions prioritised the short-term goal of filling volunteer positions to stage a
successful Games rather than longer-term strategic goals. The research contributes to better
understanding links between major event HRM strategies and volunteer selection, identifying
factors which predict volunteer selection, and possible limitations in the application of
volunteer database management systems from a SHRM perspective.

HIGHLIGHTS

 We analysed data from 53,234 cases in volunteer application data from the 2018 Gold
Coast Commonwealth Games.

 From a Strategic HRM perspective several factors were found to predict volunteer
selection.

 Event organisers prioritised short-term event delivery goals over longer-term strategic
goals.

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An Investigation towards colossal success of Larsen and Toubro
Limited: Human resource management perspective
By Saurav Goel, Arti Parmar

Abstract

Larsen and Toubro (L&T) Limited is India’s largest construction conglomerate. L&T’s
expertise is harnessed to execute high value projects that demand adherence to stringent
timelines in a scenario where disparate disciplines of engineering are required to be
coordinated on a critical path. However, no company can acquire such a feat without
systematic management of its human resource. An investigation on the human resource
management practices in orienting L&T’s success can help to identify some of the ethical
human resource practices, especially in the context of Indian market. Accordingly, a well-
designed employee satisfaction survey was conducted for assessment of the HRM practices
being followed in L&T. Unlike other companies, L&T aims to meet the long-term needs of
its employees rather than short-term needs. There were however few areas of concerns, such
as yearly appraisal system and equality to treat the employees. It is postulated that the
inequality to treat the male and female employees is primarily a typical stereotype due to the
fact that construction is conventionally believed to be a male dominant activity. A periodic
survey intended to provide 360° feedback system can help to avoid such irregularities. This
study is thus expected to provide healthy practices of HRM to nurture the young talents of
India. This may help them to evaluate their decisions by analysing the complex relationship
between HRM practices and output of an organization.

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Core functions of Sustainable Human Resource Management. A
hybrid literature review with the use of H-Classics methodology
By Katarzyna Piwowar-Sulej

First published: 18 January 2021

Abstract

The key to a successful implementation of the idea of sustainable development in

organizations is competent, motivated employees. Therefore, Human Resource Management
(HRM) is of particular interest to practitioners and researchers. New HRM concepts that
address emerging problems – such as sustainable HRM – arise and develop. The aim of this
article is to answer the following research questions: What kind of issues are presented in the
most cited articles in the field of sustainable HRM, taking into account the following division
of HRM functions: recruitment and selection, performance appraisal, compensation, training
and development, and HR flow? Which HRM functions require further research in the
context of sustainable HRM? This study applies H-Classics methodology and presents a
hybrid literature review linking bibliometric characterization of the articles on sustainable
HRM (including green HRM, socially responsible HRM, triple bottom line HRM, and
common good HRM) with a manual review of those publications that made up the H-Core of
this research field. The most discussed HRM function was HR training, while the least
discussed was HR flow. Moreover, HRM is mainly presented in relation to the environmental
bottom line. Most of the cited papers present general guidance on how to shape individual
functions of sustainable HRM and indicators for measuring the extent to which organizational
practices are green. Research directions in H-Core papers have been formulated toward all
HRM functions, treated as a system and separately. The article also presents directions for
additional research that were identified in the course of this study.

Human resource management systems for enterprise

organizations: A review
By Subhi R. M. Zeebaree, Hanan M. Shukur, Bzar Kh. Hussan

Fist published 2019

Human Resources HRs are one of the most important elements in the organizations, but it is
difficult to manage a large number of human resources, especially in large companies. For
this purpose, companies have tended to manage these resources taking advantages of the
technology and the Internet. In this research, we will focus on human resources management
in different companies and different countries and explore the factors that motivate
companies to adopt Electronic Human Resource Management E-HRM as well as the factors
that affect its adoption. The results showed that HRM plays a vital role in facilitating
organizational processes, save cost and time, it also beneficial for competitive advantages.
The findings also explored that E-HRM aspects and factors impact E-HRM adoption are
varied from firm to another and from country to another. However, the companies moved
towards adopting E-HRM because it mitigates the efforts of HR managers to take a decision.

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Human resource management in the Indian public and private
sectors: an empirical comparison
By Pawan S. Budhwar &George Boyne

This study compares human resource management (HRM) practices in Indian public- and
private-sector organizations. The investigation is based on a questionnaire survey of 137
large manufacturing firms (public sector=81; private sector=56). The key areas of analysis
include the structure of human resource (HR) department, the role of HR function in
corporate change, recruitment and selection, pay and benefits, training and development,
employee relations and emphasis on key HRM strategies. Internal labour markets (ILMs) are
used to make the comparative analysis. The statistical results show a number of similarities
and differences in the HRM systems of Indian public- and private-sector organizations.
Against the established notion, the results of this study reveal that the gap between Indian
private- and public-sector HRM practices is not very significant. Moreover, in a few HR
functional areas (for example, compensation and training and development), Indian private-
sector firms have adopted a more rational approach than their public-sector counterparts.

Industrial Trends on Talent Acquisition and Management

Strategies
By Neha Verma, Sheetal Singh & Anuriya Singh

Published in 2022

Contemporary business world is far more different and complicated as compared to the
previous business world. Personnel management has transited to human resource
management in pursuit of effectiveness and efficiency. Realisation of the worth of human
resources as ‘human capital’ has given birth to the latest concept of talent management. The
need of this hour is to creatively use worldwide existing talent management strategies, and
devise even better strategies. While talent acquisition is concerned with acquiring the right
kind of people, the management part deals with entire planning, organising, directing and
controlling of such acquisition. Talent management is a broad concept that may incorporate a
few important sub-concepts like talent acquisition and retention, competency and human
capital creation, performance, etc. This is a study on various such sub-concepts and an
analysis of the latest trends.

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INNOVATIONS IN TALENT ACQUISITION AND RETENTION IN

SOCIAL ORGANIZATIONS IN INDIA

By: PROF. KRISHNA KISHORE*; PROF. ASWATHI NAIR*; PROF.VASANTH KIRAN*

During the past decades there has been a tremendous progression in the volume of social
organizations in India. The progression is in fact a reflection of a change in the government
policies for withdrawing slowly from social development schemes. This huge void is being
covered by social organizations. A social organization can be 'for-profit' or 'not-for-profit'
venture focused in income-generating activities with an intention of bringing a positive
impact in the society. Though social organizations focus on the progression of the society,
they encounter a plethora of issues in relation to the right engagement of human resources
within their organizations. It is also a fact that social organizations consistently juggle with
serious people management issues such as attracting the right talent at low salary structure,
providing career opportunities for internal employees, retaining talent in the middle
management cadre, effective employee engagement, etc, handling cases of high attrition,
hiring and retaining cost of new employees. It is imperative for social organizations to think
out-of-the-box and look at their problems from an innovative angle to find sustainable
solutions.

ROLE OF MICRO FINANCE IN SKILL DEVELOPMENT

In Indian Perspective

By: Sanjeev Kumar

Assistant Professor, Shyam Lal College, University of Delhi

sanjeev0144@yahoo.com

Ability and efficiency are the key drivers for the socioeconomic progress and stability of any
civilization. To achieve the target, policies based on skill development are occupying a
dominant role in the development of an economy. Five years plan revealed that India has set
up aggressive goals to achieve faster and more sustainable economic growth for the nation.
Due to the high pressure of population growth, we need to import suitable skills enhancement
training programs to our workforce. Numerous measures have been adopted in India on a
priority basis to generate new ideas and skills. To promote small-scale entrepreneurs, the
government and agencies have initiated many new schemes and programs. Microfinance is
one of them that plays an important role by providing a platform for marginalized women to
develop their entrepreneurship skills. It plays an important role by providing them with
necessary inputs and helping them to generate income. This article attempts to explore the
performance of microfinance in developing skills of women for income-generating activities
Keywords: Microfinance, Skill, Employment, Demographic dividend, and Entrepreneurship.

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Role of Microfinance in Skill Enhancement

Microfinance is strategic means for developing entrepreneurship skills among marginalized

rural people, especially women. Microfinance is providing economic solidarity and
marvellous growth and is a magical instrument for the low-income strata. Microfinance also
refers to financial services like savings, deposits, money transfers, credit facilities, and
insurance to unreached sections of society, who are not approachable for financial services.

1. Empowering Women: Numerous studies have shown that microfinance has

improved the economic and social status of rural women. Leach (2002) found that
micro-credit has become successful in such an area, where a lack of business
understanding or low opportunities for economic empowerment. Satya Sai (2001)
found that self-help groups have been instrumental in the socio-economic enablement
of marginalized women. The study revealed that microfinance plays a big role in
decision-making, free mobility, and access to socio-economic networks for women.
2. Familiarizing with Skills: To increase self-employment and entrepreneurship among
the marginalized group of women, it is necessary to be more focused on the
development of skills for them. Hence, the women are left out of their usual activities
to become trained for entrepreneurship. In many situations, it has been found that
women acquired skills but are not getting a chance to make optimal use of their skills
for income-generating activities. Thus, microfinance provides the required skills to
empower women through skills of entrepreneurship.
3. Delivery of Microcredit: Money is an important factor for any business or economic
activity, it is necessary to acquire the raw input materials, production and marketing
activities, etc. Microfinance has proven an important tool for the delivery of micro-
credit. These micro-loans have helped the women to take up the business activities
like tailoring, petty shops, animal husbandry, cooking food for selling, weaving, etc.
Thus, microfinance brings a revolutionary change in the life of rural women to come
out with their recognition in the economy as successful businesswomen.
4. Market-oriented Linkage: The skill development programs remain unproductive in
the absence of proper marketization, publicity, a wide range of acceptance, etc. Due to
the absence of market linkage, these products remain only for local consumption.
Microfinance institutions play game-changer roles by considering the additional
activities apart from their core business of microcredit. They connect the rural
businesswomen to the purchasers, upcoming trade fairs, and exhibitions. Thus,
microfinance institutions have taken initiatives in establishing market linkage among
purchasers and rural businesswomen.
5. Branding and Packaging: It plays an important role to increase in demand and
bumper sales of any product. Most of the product in rural areas seems to be inferior
due to poor branding and packaging. The women engage in the production of papads,
pickles, rotis, arts and crafts, etc., but packing is a burdensome activity for them.
Some cooperatives selling these products under attractive packaging and branding
with proper advertisement add more credibility and increases the buyer’s
consideration for the product.
6. Financial Literacy: Financial literacy is an important factor in training provided by
microfinance institutions. Under this program, clients are trained in the basic concept
of savings, and optimal utilization of loans for productive and income-generating
activities. Further, women are trained for financial planning, cash flow and budgeting,
investments, debt and savings, banking and non-banking services, etc. Overall, we can

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 say that financial literacy is a skill for women to make aware of choices, household
finance, and prosperity.
7. Managing Business: Managing good business involves managing the inputs, outputs,
and finance of the enterprises. Women run their businesses but few of them lag in this
race. Money management is the main reason for lagging in business, which creates
deficiencies in inputs necessary for production. Marketing and integrating finance are
helpful for rural women entrepreneurs to make them sound.

Conclusion: Microfinance institutions have become successes in building up women

entrepreneurs from the marginalized section, especially women. Microcredit along with other
support services enhances the entrepreneurial activities of participants. Microfinance
institutions identify the potential of creating women entrepreneurs who never thought to
come out of their household chores. If more opportunities are given to them, they can come
out to show their hidden talent in micro-entrepreneurship and result in women's
empowerment. It needs the present time to provide them with more relaxed facilities of
microcredit, skill development, value addition, market linkage, etc. Microfinance institutions
must provide more organized training programs, market linkages, and other services which
are required for a successful business. Further, microfinance institutions should consider
inculcating financial literacy, communication skills, and leadership skills more effectively

Application of Artificial Intelligence in Human Resource Management

Practices

By: Pooja Tiwari; Rudresh Pandey; Vikas Garg; Abhishek Singhal

In the dynamic and competitive world, technology has changed the pace of all the industry.
Artificial intelligence is a technology which enables the industry to grow at faster pace and
efficiently finishing their work. This technology has entered into various departments such as
finance department, human resource department, marketing, production etc. AI system has
enabled the organization to enhance their existing performance and efficiently performing
functions on a day-to-day basis. Currently, due to dynamic and competitive environment
people working at different managerial level are working under pressure and understanding
the need of artificial intelligence at workplace. Authors have used quantitative research to
conduct the research and regression methods has been used to analyse the data. AI as a
technology has a role in the different HR practices starting from talent acquisition and
extending it to the assessing the performance of the people at work place. This research will
study the relation of artificial intelligence and HR functions and different functions
performed by HR department. The objective is to understand the factor like innovativeness
and how use of HR operations. To conduct the study HR professionals from different IT
companies were considered. Through the analysis the result indicated the positive linkage
between different factors such ease of use and innovativeness which clearly indicates that AI
has a influence on both the factors.

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Human resource practices and performance in microfinance organizations:
Do intellectual capital components matter?

By: Saswat Barpanda, Nick Bontis

First published: 08 March 2021

This study examines the influence of human resource practices (HRPs) on both the financial
and social performance of monetary financial institutions (MFIs), assessing the role of
intellectual capital (IC). Data were collected from 252 MFIs in India, and structural equation
modelling was used to analyse causal relationships. The proposed model finds a positive
relationship between HRPs and human, structural, and relational capital, and all facets of IC
were positively associated with financial and social performance. Intellectual capital fully
mediated the relationship between HRPs and financial performance but only partially
mediated the relationship with social performance. Accounting for IC components, the
indirect relationship between HRPs and financial performance was stronger than the indirect
relationship between HRPs and social performance. Results indicate that HRPs can better
explain the performance of MFIs through human, relational, and structural capital
accumulation. They were congruent with a resource-based view of HRM and human capital
theory.

Understanding the ecosystem of microfinance institutions in India

By: Debapratim Purkayastha, Trilochan Tripathy, and Biswajit Das

Article publication date: 27 February 2020

Issue publication date: 19 August 2020

Purpose

This paper aims to build upon the various studies conducted on the ecosystem and expands
the understanding of the ecosystem of microfinance institutions (MFIs) in India. The
discussions in this essay entail a literature review that analyzes the discourse on the
ecosystem of MFIs, and based on this an attempt has been made to conceptually design a
model for the ecosystem of MFIs in India.

Design/methodology/approach

The authors design the “Indian microfinance ecosystem model” based on the actors in the
broader financial ecosystem (Bloom and Dees, 2008; Ledgerwood and Gibson, 2013) and the
capital infrastructure and the context-setting factors of the social entrepreneurship ecosystem
(Dees et al., 2008) that best describes the Indian MFI scenarios.

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Findings

The ecosystem of MFIs in India is found to be very complicated. The interactions among
numerous actors – who are core product or service providers, facilitators, client, beneficiaries,
resource providers, competitors, complementary organizations, regulators, opponents and
influential bystanders. The authors also observed that the capital infrastructure and context-
setting factors such as policy, politics, media, economic and social conditions are equally
crucial for the MFIs to survive and flourish. Moreover, the ecosystem is also dynamic and
could change with the environmental conditions and entry of new entrants into the ecosystem.

Research limitations/implications

Understanding the ecosystem of MFIs from the strategic perspective would also be of interest
to stakeholders such as donors, investors, banks, government and so on. For MFIs, knowing
their place in the ecosystem is an essential step in determining their strategy.

Practical implications

Understanding the elements of the ecosystem would help MFIs to assess whether they have
achieved the minimum critical environmental conditions in the ecosystem for their business
model to succeed.

Social implications

Better understanding of the ecosystem will help create social benefits through better service
delivery to the low-income population.

Originality/value

Expands the existing business ecosystem literature by extending it to the social policy, social
entrepreneurship and more specifically to the microfinance sector. Fills a void in ecosystem
literature by designing a comprehensive ecosystem model of MFIs in India. Understanding
the ecosystem would help market system actors and facilitators to understand what they have
to do to achieve their objectives of participating in the ecosystem. Knowing their place in the
ecosystem is an essential step in determining what they should do and how they should do it.
In addition to MFIs, it could have important implications for policymakers, particularly the
government, that are trying to achieve financial inclusion.

24
Role of human and structural capital on performance through human
resource practices in Indian microfinance institutions: A mediated
moderation approach

By: Saswat Barpanda

First published: 06 April 2021

Although much has been written about the effects of human capital (HC) on firm
performance, little attention has been paid to the interactive effect of HC and structural
capital (SC) on performance through human resource practices (HRPs). The population of
this study is consisting of Indian microfinance organizations. Nonetheless, in the process of
bringing financial stability which is critical for MFIs to expand their outreach, they
sometimes gradually tend to drift from their social mission. Keeping the mission drift in
mind, performance is understood in terms of both financial and social performance. The
structural model has been tested using partial least squares (PLS) as the statistical tool. The
results show that HC and SC have a significant impact on performance. Further, the finding
of this research shows a mediated moderation of HRP and SC to performance. This implied
organization of assorted combinations of HC and SC would have distinct HRPs or
organization of varied HC would have diverse HRPs and organization of discrete SC would
process HRPs differently and thus resulting in different level of performance.

Do Organizational Culture and Human Resources Management Practices

Decrease Turnover Intention in Microfinance Company?

By: Sri Maryati (Business School IPB University), Nurmala Katrina Panjaitan (IPB
University), Anggraini Sukmawati (IPB University)

Published in 2022

Organizational culture can be interpreted as an accumulation of basic assumptions, practices,

principles, beliefs, norms, and values that govern a person’s behavior and action in an
organization. Microfinance Institutions (MFIs) in Indonesia are growing very fast which is
not accompanied by availability of sufficient competent human resources in this financial
industry. This condition has caused employee turnover which tends to increase in the last
three years. The research aimed to analyze the organizational culture designed by the
company manager compared to the organizational culture according to employee perception
and the effect of organizational culture and Human Resources Management (HRM) Practices
run by the company on employee turnover intention. The research was a case study in PT
DMS, one of MFIs in Indonesia. Primary data were collected from 249 respondents using the
census method as a sampling technique. Then, the analysis of organizational culture using the
Organizational Culture Assessment Instrument (OCAI) analysis showed that the culture that
could be applied was the type of clan. The Structural Equation Model (SEM) analysis shows
that organizational culture positively affects satisfaction with the implementation of HRM
practices. However, organizational culture has a negative impact on turnover intention. Then,
satisfaction with implementing HRM practices has a significant and negative effect on

25
turnover intention. It can be concluded that to decrease turnover intention, companies need to
increase employee satisfaction with the implementation of organizational culture and HRM
practice, such as creating employee development program.

Human Resource Management in Indian Microfinance Institutions

By: Richa Das

Published 2022

Over the years, microfinance has assumed a great importance all over the world. The reason
behind the increasing importance of microfinance in poverty alleviation is considered a prime
objective in all developing and underdeveloped countries. Traditionally, MFIs did not have a
defined HR policy or structure, since the size of the organization was always very small. The
last few years have seen an upswing in the size of the organizations and also in the margins
generated by MFIs. The purpose of this chapter is to analyze the human resource
management issues and challenges faced in microfinance industry in India.

A Brief Overview Of Microfinance

United Nations Millennium Goals state that by 2015 the number of people living in extreme
poverty should be half of what it was in 2000 (World Bank, 2000). Over the time researchers
have shown that those underprivileged are creditworthy (Ahmed et al., 2006; Coleman, 2006;
Hiatt and Woodworth, 2006). Microfinance has established itself as an integral part of
financial sector policies of emerging and developing countries in the past decade for
underprivileged population. Microfinance spans a range of financial instruments including
credit, savings, insurance, mortgages, and retirement plans, all of which are denominated in
small amounts, making them accessible to individuals previously shut out from formal means
of borrowing and saving. The majority of microfinance is aimed at the estimated 2.8 billion
people who live on less than $2 a day in the developing world.

26
 Chapter- 3
Overview of Company

27
Title and Introduction

Larsen & Toubro Ltd Finance

Headquartered in Mumbai, L&T Finance Holdings Ltd. is one of the leading Non-Banking
Financial Companies (NBFCs) in India, with a strong presence across the lending business
catering to the diverse financing needs of served and underserved customers. Throu gh its
entity L&T Finance Ltd., it offers Consumer loans, Two-Wheeler loans, Home loans, Micro
loans, Farm loans, and SME loans. At L&T Finance, we are committed to providing
customised financial solutions that meet the unique needs of our customers. With a focus on
innovation and customer-centricity, we aim to be a trusted partner in our customers' financial
journey.

L&T Finance Limited is an unlisted public company incorporated on 24 November, 1993. It

is classified as a public subsidiary of a foreign company and is located in Parganas North,
West Bengal. Its authorized share capital is INR 4,886.31 cr and the total paid-up capital is
INR 2,864.17 cr.

L&t Finance Limited's operating revenues range is Over INR 500 cr for the financial year
ending on 31 March, 2018. It's EBITDA has increased by 28.25 % over the previous year. At
the same time, it's book net worth has increased by 24.82 %.

Description: The company provides financial services . It operates through Rural Business,
Housing Business, Wholesale Business, and Defocused Business segments.

Products & Services: farm equipment, micro finance, and two wheeler finance products.

Category: Service Provider

The current status of L&T Finance Limited is - Active.

The last reported AGM (Annual General Meeting) of L&T Finance Limited, per our records,
was held on 03 August, 2023.

L&T Finance Limited has seven directors - Sachinn Roopnarayan Joshi, Thomas Mathew
Thumpeparambil, and other

28
Background of L&T Ltd.

Larsen & Toubro originated from a company founded in 1946 in Bombay by two Danish
engineers, Henning Holck-Larsen and Søren Kristian Toubro. The company began as a
representative of Danish manufacturers of dairy and allied equipment. However, with the
start of the Second World War in 1939 and the resulting blockade of trade lines, the partners
started a small workshop to undertake jobs and provide service facilities. Germany's invasion
of Denmark in 1940 stopped supplies of Danish products. The war-time need to repair and
refit and degauss ships offered L&T an opportunity, and led to the formation of a new
company, Hilda Ltd, to handle these operations. L&T also started to repair and fabricate
ships signalling the expansion of the company. The sudden internment of German engineers
in British India (due to suspicions caused by the Second World War), who were to put up a
soda ash plant for the Tata’s, gave L&T a chance to enter the field of installation.

After India's independence in 1947, the firm set up offices in Calcutta (now Kolkata), Madras
(now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was
acquired in Powai, Mumbai. In December 1950, L&T became a public company with a paid-
up capital of ₹20 lakh (equivalent to ₹22 crore or US$2.8 million in 2023). The sales turnover
in that year was ₹1.09 crore (equivalent to ₹120 crore or US$15 million in 2023). In 1956, a
major part of the company's Mumbai office moved to ICI House in Ballard Estate, which
would later be purchased by the company and renamed as L&T House, its present
headquarters.
During the 1970s, L&T was contracted to work with Indian Space Research Organisation
(ISRO). Its then chairman, Vikram Sarabhai, chose L&T as manufacturing partner. In 1972,
when India launched its space programme, the firm was invited to participate.

In 1985, L&T entered into a partnership with Defence Research and Development
Organisation (DRDO). L&T was not yet allowed by the government to manufacture defence
equipment but was permitted to participate in design and development programmes with
DRDO. After the design and development was done, the firm had to hand over all the
drawings to DRDO. The government would then assign the production work to a public
sector defence unit or ordnance factory for manufacture. After a series of successes and
positive policy initiatives, the firm today makes a range of weapon and missile systems,
command and control systems, engineering systems and submarines through DRDO.

Structure

Three key products/services which L&T is engaged in are: Construction and project-related
activity; manufacturing and trading activity; and IT and engineering services.
For administrative purposes, the conglomerate has been structured into sixteen subsidiary
companies, including L&T Technology Services, L&T Metro Rail, L&T Realty and LTI
Mindtree

29
Major subsidiaries

Construction

L&T Construction is among the world's top 15 contractors. The business involves the
construction of Buildings & Factories, Heavy Civil Infrastructure, Transportation
Infrastructure, Power transmission & Distribution Infrastructure, Water & Effluent Treatment
plants and Metallurgical & Material Handling Infrastructure.

Buildings & Factories

L&T's buildings and factories (B&F) business undertakes construction projects such as
commercial buildings and airports, residential buildings, and factories. Its track record
includes, 400 high-rise towers, 11 airports, 53 IT parks, 17 automobile plants, 28 cement
plants and 45 hospitals.

Heavy Civil Infrastructure

L&T's Heavy Civil Infrastructure (HCI) business undertakes projects in the areas of hydel
power, tunnels, nuclear power, special bridges, metros, ports, harbours and defence
installations. Its track record includes 231 km of metro rail corridors, 19.5 km of monorail
corridors, 8,315 MW of hydropower projects and 8,080 MW of nuclear power projects. It has
a subsidiary, L&T Geostructure LLP, and two JVs set up for metros in Doha and Saudi
Arabia – ALYSI JV Gold Line Doha Metro and AR Riyadh New Mobility Consortium
Riyadh Metro Orange Line.

Transportation Infrastructure

L&T's Transportation Infrastructure (TI) business undertakes projects such as roads,

runways, elevated corridors, railways, etc. Its track record includes 13,500 lane km of
highways, 7.49 million sq.m of runways and 3,260tkm (track kilometre) of railway tracks. It
also operates through subsidiaries such as L&T Oman LLC,[21] L&T Infrastructure
Engineering Ltd, and Hi-tech Rock Products & Aggregates Ltd.

Power Transmission and Distribution

L&T's Power Transmission and Distribution (PT&D) business undertakes projects involving
the construction of substations, utility power distribution systems, transmission lines and
optic fibre cabling projects. It executes projects in the renewables space, such as utility scale,
micro grids and energy storage. It also operates in the Middle East, Africa and the ASEAN
region. Its track record includes 12,510 tkm of railway electrification, 585 substations, 29,380
MW of E-BoP, and 20,600 ckm (circuit kilometre) of transmission lines.

30
Renewable Energy - L&T Solar

L&T develops concentrated solar power and solar photovoltaic technologies (grid-connected,
rooftop and microgrid). It designs and builds solar power plants. L&T Solar, a subsidiary,
undertakes solar energy projects. In April 2012, L&T commissioned India's largest solar
photovoltaic power plant (40 MWp) owned by Reliance Power at Jaisalmer, Rajasthan from
concept to commissioning in 129 days. In 2011, L&T entered into a partnership with Sharp
for EPC (engineering, procurement and construction) in megawatt solar project and plan to
construct about 100 MW in the next 12 months in most of the metros. L&T Infra Finance,
promoted by the parent L&T Ltd, is also active in the funding of solar projects in India. It is
governed by Rebel Enterprises.

L&T Power

L&T Power has set up an organisation focused on coal-based, gas-based and nuclear power
projects. L&T has formed two joint ventures with Mitsubishi Heavy Industries, Japan to
manufacture super critical boilers and steam turbine generators. L&T-MHPS Turbine
Generators Private Limited (formerly known as L&T-MHI Turbine Generators Private
Limited) is a Joint Venture Company formed in 2007 in India between Larsen & Toubro
Limited (L&T), India, Mitsubishi Hitachi Power Systems (MHPS) and Mitsubishi Electric
Corporation (MELCO), headquartered in Tokyo, Japan for manufacture of super-critical
Turbines & Generators. L&T-MHPS Boilers Private Limited (formerly known as L&T-MHI
Boilers Private Limited) is a 51:49 Joint Venture Company formed on 16 April 2007 in India
between Larsen & Toubro Limited (L&T), India and Mitsubishi Hitachi Power Systems
(MHPS), Japan for engaging in the business of design, engineering, manufacturing, selling,
maintenance and servicing of Supercritical Boilers and Pulverisers in India.

The design wing of L&T ECC is EDRC (Engineering Design and Research Centre), which
provides consultancy, design, and services. It carries out the basic and detailed design for
both residential and commercial projects.

Defence & Aerospace

L&T is one of India's largest developers and suppliers of defence equipment and systems,
with over 30 years of experience in this space. It offers design-to-delivery solutions
[buzzword] for land, sea and air defence. The company also offers specialised turnkey
defence construction services, infrastructure and modernization of facilities. L&T's
Aerospace business manufactures equipment and systems for the aviation and space industry,
and has contributed to ISRO's Chandrayaan-2 and Mars Orbiter missions.

L&T has a shipyard capable of constructing vessels of up to 150 metre long and displacement
of 20,000 tons at its heavy engineering complexes at Hazira and Gujarat. The shipyard
constructs specialised heavy-lift ships, CNG carriers, chemical tankers, defence & para-
military vessels, submarines and other role-specific vessels.

31
Other subsidiaries and joint ventures

L&T Finance: Larsen & Toubro financial services is a subsidiary which was incorporated
as a non-banking financial company in November 1994. The subsidiary has financial
products and services for corporate, construction equipment’s. This became a division in
2011 after the company declared its restructuring. A partnership between L&T Finance and
Sonalika Group farm equipment maker International Tractors Ltd in April 2014 provided
credit and financing to customers of Sonalika Group in India.

International Markets
L&T sharpened its focus on international markets, especially the Gulf, from 2010 onwards.
Since then, from under one-tenth, international business now contributes around one-third to
both order inflow and revenue. L&T has set up a full range of operations in the Middle East
catering to the Gulf and North Africa. Many of the projects are being undertaken through
joint ventures with leading companies based in the Gulf. L&T provides turnkey solutions
across key regions: the Middle East (UAE, Qatar, Kuwait, Oman, Saudi Arabia and Bahrain),
Africa (Algeria, Kenya, Ethiopia and Malawi) and ASEAN (Malaysia and Thailand). The
range of work is wide and varied: high-voltage substations, power transmission lines, extra-
high-voltage cabling and instrumentation and control systems

Listing and shareholding

The equity shares of the company are listed on the Bombay Stock Exchange (BSE) and the
National Stock Exchange of India (NSE). The company's shares constitute a part of the BSE
SENSEX of the BSE as well as the NIFTY 50 index of the NSE. Its global depository
receipts (GDR) are listed on the Luxembourg Stock Exchange and London Stock Exchange

Awards and recognition

 L&T ranked 2nd in Top 25 EPC Contractors 2022 in the Middle East List by Oil & Gas
Middle East
 L&T ranked 4th in the 2021 LinkedIn Top Companies list, India
 In 2021, L&T won the Innovation in Onboarding at the OLX People HR Excellence
awards by The Economic Times HRWorld
 L&T Hydrocarbon won the Federation of Indian Petroleum Industry (FIPI) ‘Engineering
Procurement Construction (EPC) - Company of the Year’ Award for 2020
 In 1997, the Bengaluru Works division was awarded the "Best of all" Rajiv Gandhi
National Quality Award
 In 2013, L&T Power received 'Golden Peacock National Quality Award – 2012' at the
23rd World Congress on 'Leadership & Quality of Governance'
 L&T ranked at No.22 among World's Best Employers and No.1 in India by Forbes for
2018.

32
Outlook for FY24

Global growth is forecasted to slow from 3.4% in 2022 to 2.8% in 2023 as per International
Monetary Fund’s (IMF) World Economic Outlook, April 2023. A sustained inflation in many
economies, rising interest rates and negative global spillover effects from the war in Ukraine
is expected to dampen trade growth in the CY23. This is reflected in the lower global trade
growth forecast by the World Trade Organisation at 1% in 2023 from 3.5% in 2022. Due to
potential global economic slowdown, persistent inflationary pressures and reduced external
demand, India’s GDP growth in FY24 may be slower. While there are some positive factors
such as continued government investment, reduced corporate debt, a low level of stressed
assets in the banking sector, the Production-Linked Incentive (PLI) scheme, and the
possibility of stable global commodity prices, they may not be enough to push GDP growth
beyond 6% in FY24.
Most of the projections for India’s economic growth for FY24 hover near 6.0% as compared
to 7.0% in FY23. On the positive side, consumer inflation is expected to moderate in FY24
partly due to the lagged impact of the RBI’s aggressive monetary tightening throughout FY23
and partly on account of a favourable statistical base. CRISIL ratings expects CPI based
inflation to average 5% in FY24 due to lower commodity prices, expectations of softer food
prices, cooling domestic demand and base effect. There are higher chances that relatively
lower inflation and lower-than-expected gross market borrowings announced by the Central
Government will somewhat lower the cost of borrowings during FY24. Relatively softer
global commodity prices, especially the prices of energy products and a healthy growth
momentum in the services exports may lower the CAD to 2.0-2.5% of GDP in FY24. The
lower CAD and India’s relatively better economic performance than other emerging market
economies will support the rupee during FY24.

Possible Threats

a. Global Risks

i. Global Slowdown- As India’s growth cycles are linked to those of advanced countries
through the trade and financing channels, a sharper-than expected slowdown/recession in
advanced economies due to the monetary tightening or the ongoing banking troubles can
create a downside to India’s economic growth outlook.
ii. High Global Debt- High global leverage amid rising interest rates and slowing growth
creates conditions for financial stress. If the public and private sectors are forced to
deleverage simultaneously, growth prospects will suffer for emerging market economies like
India.

33
iii.Geopolitics- A further spike in geopolitical tensions, which already remain elevated, can
cause sharp spikes in global crude and commodity prices, disrupt the supply chains and trade
further, increase fiscal spending and create a downside risk to India’s growth.
b. Domestic Risks
i. Possibility of El Nino The potential occurrence of El Nino conditions could hurt
the prospects of crop output and rural demand and put upward pressure on food
inflation. If inflation rises above the RBI’s tolerance level, a delay in taking a
‘pause’ and tighter monetary conditions could impact growth negatively.

ii. Climate Risks Climate change has begun to play out in the form of rising global
temperatures and increased frequency of extreme weather events like droughts,
cyclones, heat waves, and flooding. According to Cross Dependency Initiative,
which specialises in climate risk analytics for companies, banks, and regions, the
vast majority (80%) of 50 provinces facing the highest climate risk to their
physical infrastructure by 2050 are in China, the US, and India. These
developments may have implications for India’s food security.

Key business initiatives achieved as part of Lakshya 2026

I. Delivering Strong Performance by Maintaining Market Leadership Your

Company continued to be amongst the leading financier in Farm Equipment
Finance, Two-Wheeler Finance and Rural Group Loans & Micro Finance. New
businesses viz. Consumer Loans and SME, further contributed to retail growth.
Retail disbursements were up 69%, reaching an all-time high of ₹ 42,065 Cr
resulting in book growth. The retail book grew from ₹ 45,084 Cr to ₹ 61,053 Cr
during the year under review. Wholesale book (includes defocused) reduced
decisively from ₹ 43,257 Cr to ₹ 19,840 Cr resulting in a flat book on y-o-y basis.
Thus, while the book remained flat, the composition of the underlying book and
growth changed significantly, reflecting a commitment to delivering on the
Lakshya strategy.
II. Fintech@Scale - PLANET App Your Company launched Personalised Lending
& Assisted NETworks (PLANET), a customer-facing app, in March 2022. The
app has crossed over 3 Mn downloads in the first year of launch, expanding the
digital footprint through D2C proposition. The app provides a bouquet of services
ranging from providing servicing solutions to applying for a Consumer Loan as
well as creating a Two-Wheeler and Farmer ecosystem. The app is being ramped
up to create an end-to-end digital journey for the spectrum of products across both
urban and rural customer landscapes.
III. Resilient and Prudent Asset Liability Management The liability franchise built by
your Company enabled it to navigate the environment during Covid and
challenges continuing even today. While interest rates increased 250 bps during
the year, a sound ALM strategy of your Company, saw yearly Weighted Average
Cost of Capital (WACC) reducing by 4 bps. Your Company continued to leverage
on PSL borrowings through which ₹ 8,756 Cr was raised during the year. A
diversified borrowings profile and a change in portfolio mix to Retail is providing
a hedge to increasing interest rates, thereby aiding healthy NIMs.
IV. Strong Balance Sheet Your Company’s strong risk management framework, use
of data, and analytics helped in reducing retail GS3 from 3.82% in FY22 to 3.41%

34
 in FY23. The retail GS3 assets have a PCR of 80%. Further your Company carries
additional provision of ₹ 1,171 Cr (Macro, enhanced and OTR provisions)
corresponding to 1.99% of the standard book. Your Company is comfortably
capitalised with a CRAR of 24.52% (Tier I at 22.10%) and carries a liquidity of ₹
18,068 Cr to face any uncertainties arising out of the current macro situation.

Financial Ratios

Standalone FY23:

The Debt-Equity ratio saw a significant decline from 0.01 to 0.00 (100%) on account of
redemption of preference shares. Net profit margin increased from 62.26% to 79.91% mainly
on account of gain on sale of 100% equity shares of L&T Investment Management Limited, a
wholly owned subsidiary of the Company.

Consolidated FY23:

The Debt-Equity ratio saw a decline from 4.27 to 3.86 (8.90%) on account of redemption of
preference shares and prepayment of borrowings. Net profit margin increased from 8.51% to
11.55% mainly on account of strong book growth across all retail products.

35
 CHAPTER- 4
Description of the Organization

36
L&T Finance

Headquartered in Mumbai, L&T Finance Holdings Ltd. is one of the leading Non-Banking
Financial Companies (NBFCs) in India, with a strong presence across the lending business
catering to the diverse financing needs have served and underserved customers. Through its
entity L&T Finance Ltd., it offers Consumer loans, Two-Wheeler loans, Home loans, Micro
loans, Farm loans, and SME loans. At L&T Finance, we are committed to providing
customised financial solutions that meet the unique needs of our customers. With a focus on
innovation and customer-centricity, we aim to be a trusted partner in our customers' financial
journey.

L&T Finance is a well-known name in the Indian finance sector. However, it is neither a
bank nor an NBFC, but a CIC core investment company (discussed later). L&T Finance
Holdings Ltd is promoted by Larsen & Toubro Ltd, a leading company involved in
construction, engineering, electrical and electronics, and other sectors.

It is the subsidiary of L&T Finance Holdings Ltd. Together with all its handful of subsidiary
companies (mentioned later), L&T Finance Holdings offers a range of financial products and
services across various sectors. This article discusses the history and journey of L&T Finance
Ltd since its inception, the group structure, financials, and recent developments in the firm to
help you analyse L&T finance share.

Board of Directors

37
Senior Management

Growth Journey of L&T Finance

 1994: L&T Finance Ltd was incorporated

 2007: L&T Infra Finance was established and VC Financing was commenced
 2008: Total assets of L&T Finance crossed Rs 10,000 cr and Microfinance &
Loan Against Shares segment was launched
 2009: The company issued NCDs for the public
 2010: Ventured into mutual funds business and launched Infra Bonds
 2011: Total assets crossed Rs 20,000 cr and IPO of L&T Finance Holdings
Ltd was issued
 2012: Total assets crossed Rs 30,000 cr. Further, L&T Finance acquired
Fidelity’s MF business and IPHF’s Housing Finance business. The company
also ventured into 2-wheeler financing by acquiring Family Credit
 2013: Issued preference shares
 2015: Total assets crossed Rs 50,000 cr. L&T Finance issued equity on a
preferential basis as well as warrants to Bain Capital
 2017: Its stock reached an all-time high of Rs 200. The company commenced
its micro loans business in Assam and was awarded the “Best Finance
Company in Renewable Energy” at “Central Board of Irrigation & Power
Awards”. The company also crossed an AUM of Rs 50,000 cr in mutual funds
 2018: Won “Management of Change & Excellence in HRM” in the CII
National HR Circle Competition and the “Best Audit Committee” Award by
the Asian Centre. ICRA upgraded the credit ratings of L&T Finance Holdings
and its subsidiaries to AAA. The company was featured in the Forbes India’s
Super 50 Companies 2018
 2019: CRISIL, ICRA, India Ratings, and CARE assigned/reaffirmed AAA
rating of L&T Finance Holdings and its subsidiaries, despite multiple

38
 downgrades across the sector. The company publicly offered Secured NCDs
with a base issue size of Rs 500 cr
 2020: Business Standard Social Excellence Awards 2019 recognises L&T
Financial Services as the most Socially Aware Corporate of the Year.
 2021: L&T finance Holdings raised over Rs. 2998.6 crore through right issue.
The issue was oversubscribed by 15 percent.
 2022: Mr SN Subrahmanyan has been appointed as the director and
chairperson of L&T Finance Holdings. This is in line with L&T’s overall
commitment to strengthen its presence in the services area.
 LTFH has initiated the merger of its subsidiaries- L&T Finance Ltd. L&T
Infra credit Ltd. And L&T Mutual fund trustee Ltd. With itself i.e., the non-
lending, equity- listed, holding company.

Business segments of L&T Finance

 Rural
 Housing
 Wholesale
 Mutual fund
 Wealth management

Acquisitions by L&T Finance Ltd

L&T Finance acquired the following companies:

 Fidelity’s MF business in India, IPHF, and FamilyCredit

39
  L&T Investment Management Ltd, formerly known as DBS Cholamandalam Asset
Management Ltd
 L&T Mutual Fund Trustee Ltd, formerly known as DBS Cholamandalam Trustee Ltd

Last 4 year’s financials of L&T Finance Ltd

L&T Finance Holdings has grown its revenue at an annual rate of 8.68% over the last five
years. In the June quarter of FY24, the company's revenue from operations increased 7.86%
to ₹3,223.3 crore. The company has a debt-to-equity ratio of 384.4%.

Here are some other financials for L&T Finance Holdings:

 Total shareholder equity of ₹216.2B

 Total debt of ₹831.0B
 Total assets of ₹1,063.6B
 Total liabilities of ₹847.4B
 Equity dividend of 20.00% for the year ending March 2023
 Retail book size of Rs 61,053 crore, up 35%
 Retail portfolio mix of 75% in the fourth quarter

40
Our Businesses

Rural Finance

During the year, your Company continued to witness strong business momentum with focus
on rapid and sustainable retailisation despite the localised lockdowns owing to the 2nd and
the 3rd waves of Covid. In line with our retailisation strategy, Retail business has become our
largest lending segment at 51% (surpassing the wholesale book for the first time). Post Covid,
your Company has been following a strict collections led disbursement strategy and had
initiated business in locations where collection efficiencies had restored to normal. Through
rigorous usage of analytics driven Early Warning Signals and culture of ‘Zero DPD’, the
asset quality remained in control.

Farm Equipment Finance

The rural economy faced multiple challenges namely skewed rainfall distribution, rural
distress on account of prolonged continuation of pandemic, elevated unemployment levels
and non-remunerative prices. This adversely impacted rural demand thereby resulting in
lower tractor sales. This, in addition to the high base of tractor sales in FY21, contributed to a
decline in tractor sales in FY22, on a YoY basis. However, the medium to long-term demand
/ potential for tractors remains intact (including the replacement demand) on account of lower
tractor penetration in India which is at 40%.

41
Despite slowdown in the tractor industry segment due to the factors as discussed above and
subdued sales due to Covid, your Company has managed to increase its tractor loan
disbursements by 15% YoY to `5,152 Crore and increase its book by 10% to `11,317 Crore.
This has been made possible due to the capabilities developed in data sourcing analytics. This
helped your Company maintain its market share in the Farm Equipment Finance industry. As
part of LTFH strategy to retain good customers, your Company has introduced a loan
retention product namely ‘Kisan Suvidha’. This demonstrates the use of customer retention
analytics by monetising on the rich database of customer that LTFH has developed through
its long-term presence in tractor finance business. This endeavour of LTFH has reaped rich
dividends wherein the contribution of Kisan Suvidha Loans in the overall business has
touched 25% in FY22. It is to be noted that these loans are given to prime customers with
excellent credit and repayment track record.
Your Company’s focus on collections led to the collection efficiency (CE) reaching 94.4% in
March 2022, thus reflecting pre-Covid levels. This was made possible through collection
analytics around resource, timing and method of collections.

Two-Wheeler Finance

In FY22, the Two-Wheeler industry saw a 11% de-growth in domestic sales led by 11% drop
in Two Wheeler production to 13.5 million units. The Two-Wheeler industry last clocked
such low levels a decade ago in FY12, when sales were just over 13.4 million units. At its
peak in FY19, two-wheeler production in India was over 21 million units. Rising fuel and
commodity prices, supply chain constraints, continued work-from-home, educate-at-home
practice resulted in lower demand. Through rigorous execution of digital proposition on the
ground and domain expertise whilst maintaining conservative LTV levels, your Company has
remained one of the leading financiers in Two-Wheeler finance in FY22. The year also saw
the Company book increase by 5% YoY with the disbursements reaching pre-Covid levels.

Micro Loans

The Micro lending sector was adversely affected on account of the pandemic. Despite this,
the sector exhibited resilience through improving operating metrics during Q2FY22 and
Q3FY22 by growing 7% YoY during FY22 on the back of enhanced needs and growing
aspirations of microfinance customers across the country.
Your Company has furthered financial inclusion through providing loans to women
entrepreneurs of rural India engaged in responsible end use namely dairy, grocery shops and
similar allied activities for earning their livelihood. This year, over 2.11 million women
benefitted from disbursements made through various schemes. Wave 2 of the pandemic had
its impact on Q1 disbursements. However, your Company’s strategy of collections-led
disbursement led to pick up in disbursements as and when collections in various regions
stabilised. Further on, the opening up of the markets in new states and existing geographies
resulted in fast tracking the pace of disbursements. With this, your Company was able to
deliver healthy growth of 50% in disbursements and book by 9%.
Enterprise-wide strategy of customer retention has resulted into healthy growth of two
products namely ‘Vishwas Loans’ and ‘Pragati Loans’. While Vishwas Loans, an already
existing offering for our good customers, has scaled up smartly; Pragati Loans catering
exclusively to existing customers, was launched this year. These initiatives have enhanced the
efforts around customer retention to 56%. Our strategy of collections-led disbursement,

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customer retention initiatives and pin-code level data analytics have led to collection
efficiencies bettering pre-Covid levels. The collection efficiency (CE) as of March 2022
stands at 99.6%.

A micro loan or microcredit is a service offered by banks, and as the name suggests, the size
of this loan is smaller as compared to regular basic loans. The main aim that a micro loan strives
to achieve is to provide financial aid to low-income individuals and help them become self-
dependent. Micro loans have recently become extremely popular in the country as every Indian
found some or the other benefits they could derive from this service. According to the
Economic Times, the year-on-year growth of the lenders' microfinance loan portfolio was
about 10% at the end of December 2021.

The micro loan market has experienced stable growth even after Covid. An important reason
behind the popularity of micro loans is their ability to work towards solving the core issues
faced by common Indians like poverty, not enough opportunities for women, not enough
opportunities for vulnerable groups, and poor standard of living. Overall, the microfinance
sector has experienced tremendous growth in the last two decades, and each day more and more
low-income individuals are choosing micro loans in times of need.

Key features of Micro Loans

Micro Loan in India

Through a micro loan scheme, you can borrow a loan and use it for the following purposes:

Starting a new business: If you are someone who has been planning to open up their own
business for the longest time, this is your chance to do it. Micro loans are prevalent among low-
income individuals who want to start their businesses.

Managing daily business expenses: A micro loan will be the best option if you are already
running a business and having difficulty managing your day-to-day business expenses. Borrow
a micro loan and say goodbye to the everyday stress of business expenses.

Paying off salaries to employees: Running a business is not easy. You have to manage many
employees and are responsible for their livelihoods. Pay off the salaries of your employees on
time by borrowing micro loans.

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Micro Loan Eligibility

Micro loans provide for everybody, so the eligibility requirement is pretty basic. At LTF, we
consider the borrower's income-generating capacity while accepting their application for a
micro loan. To be eligible for a micro loan, your age should be between 20 to 60 years. LTF
lends micro loans to women borrowers.

Eligibility & Documentation

Documents Required For Micro Credit

The documents required for the application and processing of micro loans at LTF are an Aadhar
card, voter ID card, ration card, or MGNREGA card. However, as income proof, we consider
the capacity of the borrower to earn rather than any other document.

In today's world, it is becoming exceedingly tricky, especially for low-income groups, to

manage finances, earn a livelihood, run a business and raise a family all at the same time.
Moreover, inflation is making things worse. With each passing day, the cost of living is
increasing, and the opportunities to earn are decreasing. In such a situation, when a woman or
a common Indian man with no financial aid wants to build a better future for themselves by
starting their own business, they should turn to micro loans.

Today micro loans have helped thousands of people start their businesses and run their current
businesses smoothly. By borrowing a micro loan, you will be helping yourself and your
business, the people you have employed, and, needless to say, your friends, your family, and
your mental and physical health. Now that you understand what micro credit is, you need to
stop struggling and getting crushed under pressure. To meet your financial needs, borrow a
micro loan from LTF today and watch your worries melt away.

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Rates & Charges of Micro Finance

Products Schemes of Micro Loans

Consumer Loans

Your Company had carved out a new personal loan product in FY20 by leveraging its
existing database of Two Wheelers over ten years. This product is a completely Digitally
Native proposition (holistic - both for sourcing and servicing) for good customers with
proven track record. This new loan product has been able to successfully cater to over 1.9
Lakh customers and achieve a scale of `2,292 Crore book as of March 2022. This validates
the success of our customer retention initiatives. It is needless to say that this growth has not
come at the expense of collection, with the portfolio collection efficiency (CE) being steady
at ~99.5%. This reflects our robust underwriting standards using digital and data analytics
aimed at building a sustainable quality portfolio. Going forward, your Company is looking to
build the book through open market launch of consumer loans aimed towards fulfilling the
education and healthcare needs of customers.

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Real Estate Finance

Despite withdrawal of stamp duty reduction in certain key cities viz.: Mumbai and
Bengaluru, FY22 has been a year of revival and measured growth for the residential sector
due to the impact of pent-up demand as witnessed during second half of FY21. Home sales
and new launches both showed a significant improvement with 2nd and 3rd waves of
pandemic having low impact on the overall sentiments. Continued policy support by
governments, a revival in economic activity coupled with a low home loan rate regime are
some of the key factors driving residential growth. While rising input costs due to supply
demand gaps have had an impact on the construction activity and developers’ margins, the
momentum with respect to residential sales did not get hampered as the prices remained
largely stable across cities. Renewed demand in the affordable and the mid segment continues
to drive the residential real estate market.
Recovery in commercial real estate market has been relatively slow as compared to
residential market. The office market in India has started showing signs of recovery, with
leasing activities that had slowed during 2020 and most part of 2021, were seen to be
improving from second half of FY22. As the 3rd wave of Covid weakened, employers have
started to resume their ‘return to office’ plans. Commercial office leasing rentals remained
stable during FY22.

SME Finance:

As per MSME pulse, demand for MSME loans (measured in terms of number of commercial
credit inquiries) accelerated and grew about 1.7 times the demand of two years ago. NBFC
saw credit demand crossing 2x for the same period. The formalisation of MSMEs and their
adoption of platform-based banking services enabled lenders to capture more data. This
makes credit processing and loan delivery seamless, and underwriting and debt collection
more granular, boosting confidence of financial institutions. Post the pilot launch in FY22,
SME Loans business expanded geographically from 2 locations to 17. The book size stood at
₹ 1,378 Cr with disbursement towards Professional & Business Loans. Currently your
Company is sourcing from 80+ DSAs across the nation. During the year, your Company
disbursed ₹ 1,473 Cr with a customer base of 6,000+ on book. The Unique Selling Point
(USP) provided by LTF is a direct-to-channel journey, and offers digitally simplified
processes and strong value proposition to the customer – through term loan & dropline
overdraft.

Business Environment

The Indian economy reverted to growth mode in FY 2021-22 after a decline in FY 2020-21.
Just as the economic revival was seen in the latter part of first half of FY 2021-22, the second
half of FY 2021-22 again faced another wave of the COVID-19 variant, though the adverse
impact was limited.
However, private consumption spending, especially in the rural belts continued to stay weak
throughout FY 2021-22, led by an uneven monsoon, weak non-farm employment generation
and unfavourable terms of trade for farmers. India’s Consumer Price Index (CPI) based
inflation averaged at 5.5% in FY 2021-22 versus 6.2% in the corresponding period of the
previous year. While softening of food prices provided some relief, the hardening of crude oil
prices presented a major headwind to the inflation outlook. The Indian financial sector
remained fully functional during FY 2021-22 and anchored the process of economic

46
recovery. However, in the last quarter of FY 2021-22, the post pandemic recovery of Indian
economy was partially affected by the disruption caused by the war in Ukraine and the
consequent economic sanctions on Russia, which are likely to reduce global growth and push
up inflation. The regulatory environment saw lot of changes with the RBI issuing multiple
guidelines for harmonising policies between all lending institutions.
To strengthen supervision over NBFCs, the RBI introduced scale based regulation and
revised Non Performing Assets (NPA) recognition and up gradation norms during October
2021. The RBI tightened NBFC asset classification norms by issuing guidelines on Income
Recognition, Asset Classification and Provisions (IRACP) .The revised norms prescribed the
classification of Special Mention Account (SMA) and NPA on a day-end position basis and
upgrade from an NPA to standard category only after clearance of all outstanding over dues.
Further, the RBI brought in the Prompt Corrective Action (PCA) framework, which was
aimed at increasing market discipline among non-bank players and align the regulations at
par with those of banks.

Significant Initiatives
During FY 2021-22, along with addressing the challenges posed by the COVID-19 pandemic,
the business focused on retailisation, sustainability of performance with steady margins,
improving asset quality and building a strong liability franchise. The specific focus for the
year was on the following areas:

A) New Retail products

LTFH scaled up its first ’Digitally Native ‘Product-Consumer Loans (¢2,254 crore
disbursement in FY 2021-22) at a rapid pace and launched a pilot for a new product -
Small and Medium Enterprise Loans (SME loans) in Q3 FY 2021-22. The SME
products are aimed at addressing the financing needs of the professionals (mainly
doctors and chartered accountants) and specific industries which have shown
resilience during successive waves of COVID-19.

B) Proactive Liability Management and Diversification of Borrowings

In FY 2021-22, LTFH leveraged its strong liability franchise to further reduce its
weighted average cost of borrowing (WAC). This was done through renegotiation of
interest rates on existing borrowings, prepayment of high-cost borrowings and raising
of long-term low-cost borrowings such as Priority Sector Loans (PSL) as well as
Sustainability Linked Loan (SLL). The yearly WAC reduced by 58 bps from 8.08%
for FY 2020- 21 to 7.50% for FY 2021-22 helping to achieve the lowest ever yearly
WAC. The Liquidity Coverage Ratio (LCR) guidelines announced by the RBI came
into effect from December 2020. As a prudent practice, LTFH has been maintaining
LCR ratios well above the regulatory required ratios. The Company continued to
capitalise on the low interest rate environment in FY 2021-22 and has been able to
lock-in long-term low-cost funding. It raised long-term borrowing of ¢15,293 crore in
FY 2021-22 with an average maturity of 3.22 years

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 C) Digital Initiatives LTFH launched

UPI based payments which amplified the customer experience alongside easing the
collection efforts.

Major Achievements
LTFH launched a Direct-to-Consumer (D2C) mobile application named ‘LTFS Planet’
(Personalised Lending and Assisted NETworks) to fulfil the objectives of:
 Sourcing for onboarding customers directly through lead generation, end-to-end
digital workflows, digital partnerships and e-aggregators
 Increasing upsell and crosssell across businesses, thus resulting in enhanced customer
engagement • Digital collections and servicing, thereby reducing branch/call centre
dependency and converting the non-mandate customers
 Providing insights on customer behaviour based on the deep tech and data analytics
during the year, LTFH’s AAA rating was reaffirmed by all four rating agencies –
CRISIL, ICRA, CARE and India Ratings. Also, in August 2021, ICRA changed its
rating outlook for the Company to ’AAA/Stable‘from ’AAA/Negative’.

Outlook
At the end of FY 2021-22, risks to India’s economic growth have shifted from the COVID-19
pandemic to geopolitics, elevated crude oil prices and interest rate hikes by the US Federal
Reserve. While economic growth in FY 2022-23 will be driven by another year of normal
monsoons, higher public investment and private capex in select pockets supported by the
Government’s PLI scheme, there will be headwinds from the global economic slowdown and
higher commodity prices, especially oil.

Bond yields and bank interest rates will rise at a faster pace because of adverse spill overs
from the actions of global central banks, higher market borrowings by the Central and State
Governments and inflation risks. LTFH plans to be a top-class, digitally-enabled retail
finance company moving from a ‘product-focused’ to a ‘customer focused’ approach, thereby
creating a Fintech @ Scale. LTFH with a CRAR of 23% is well poised to leapfrog into this
next phase of growth through vectors like continued product excellence, cross sell and upsell
to existing good customers, geographical expansion, launch of new products and App &
Digital-based channel expansion.

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Financial Performance of the Segment

The Financial Services segment comprises Rural, Infrastructure and Housing Finance.

The segment’s revenue declined by 10.7% y-o-y at ¢11,971 crore for FY 2021-22 due to
targeted reduction in the wholesale loan book. With easing of the pandemic and resumption
of normalcy in economic activity, disbursal of fresh Loans and Advances grew by 31% y-o-y
at ¢37,202 crore for the year ended March 31, 2022. The Loan Book stood at ¢88,341 crore
as at March 31, 2022 registering a decline of 6% over the previous year, reflecting a cautious
lending approach, focus on collections, portfolio sell down and a phased liquidation of the de-
focused business book. The Net Interest Margins (NIM) including fee income improved from
6.95% to 7.84% mainly due to the increase of share of rural portfolio, higher fee income and
reduced cost of borrowings.

The Gross Non-Performing Assets (GNPA) ratio improved to 3.80% as at March 31, 2022
from 4.97% as at March 31, 2021. Net NPA ratio has increased to 2% as at March 31, 2022
against 1.57% as on March 31, 2021, with one large value account being classified as NPA
during the year. The Financial Services business entered into a definitive agreement with
HSBC Asset Management (India) Private Limited (“HSBC AMC”) to sell its stake in the
Asset Management Company (L&T Investment Management), subject to regulatory

49
approvals. Average Assets under Management (AAUM) in the Investment Management
business is at ¢75,592 crore.

Digital and Data Analytics

Seven years back, your Company forayed into taking strategic decisions that redefined the
manner in which it did business. These decisions included:
 Keeping data at the core of decision making
 Eliminating subjectivity/bias in decision-making
 Algorithm-led sourcing, underwriting, disbursements and servicing
 Call on digital-only disbursements and veering towards digital collections
 Using surrogates/proxies to underwrite both in the rural and urban areas
 Moving beyond credit bureaus to source customers i.e., new-to-credit/other
customers, thus making it geo-agnostic
If we look back, these interventions have not been sudden but gradual gnawing of changes in
a calibrated manner through ecosystem-based analysis and co-ordination. Thus, it became
evident that digital and data analytics is a key strategic step in the sustainable development of
the retail business franchise.
These Investments in building digital and analytics prowess led to the following results:
 Your Company emerging as one of the leading financiers in its flagship products:
Farm Equipment Finance, Two Wheeler Finance and Rural Group Loans & Micro
Finance
 Enhancing customer experience
 Providing best-in-class
Turn Around Time (TAT) To enable systems to run faster, become more agile and to enable
faster decision-making through the use of analytics, structural changes were made with IT
infrastructure being moved to Cloud. Employee-assisted apps were developed to provide the
much-needed medium for field employees to undertake seamless sourcing, underwriting,
disbursements, collections and servicing. These apps in rural areas brought about a clear
sustainable manner in which financial services could be delivered seamlessly to customers.

Building sustainable competitive advantage

Digital innovation and technology enhancement are integral strategies to achieve our vision
of creating sustainable value for all stakeholders. The Covid pandemic has only accelerated
the demand for digitisation and digital adoption, which has been a significant contributor to
your Company’s business resilience and to scaling growth and productivity of its activities.
Your Company has been able to revamp end-to-end customer journeys and deliver leadership
products and services in the industry. It has moved up the maturity stages in terms of
lifecycle, data and talent by having a healthy balance between digital innovation and stable
availability of service to its customers. With product and rural centricity at your Company’s
core, initiatives taken include building of robust Digital assisted apps for enabling our field
force to source and disburse loans seamlessly and at industry best TAT. The adaptation to

50
cloud infrastructure has enabled our team to deliver on aspects that generate increased
business value such as improved underwriting, enhanced TAT, ease of doing business and
better productivity around credit.
LTFH has also built a mechanism to detect and weed out frauds through an independent Risk
Containment Unit, further assisted by digital on boarding solutions and online verification
processes. Your Company has enabled your field force with digital touch-free collection
mechanism. Touch-free collections aim at minimal to no contact with customers for
collection of dues. With this facility, customers can seamlessly make digital payments or by
visiting nearest payment bank. It is pertinent to note that touch-free collections accounted for
~82% of the total collection in FY22 in the Two-Wheelers business.
Additionally, launching UPI payments has amplified customer experiences alongside easing
collection efforts. Efforts are underway to develop end-to-end linking of sales proceeds of the
funded projects by using Artificial Intelligence (AI) and IT in the infrastructure business.
Being a reputed brand with embedded trust, your Company continues to strive in protecting
customer information and ensuring data security for the sustainability of the business. Thus,
safety protocols are updated regularly and considerable effort is made to adhere to top-notch
customer privacy protection practices as well.
Further, overall digitisation of products and processes across the organisation has minimised
the use of paper, thus providing an environmentally efficient solution for the Company.

Integration of digitisation across the customer lifecycle

 Direct-to-Consumer (D2C)
1. A mobile application named ‘LTFS Planet’ (Personalised Lending and Assisted NET
works) has been successfully launched to fulfil the objectives of: a. Sourcing and on
boarding customers directly through lead generation, end-to-end digital workflows,
digital partnerships and e-aggregators.
2. Increasing up-sell and cross-sell across businesses thus resulting in enhanced
customer engagement
3. Digital collections and servicing, thereby reducing branch / call center dependency
and converting the non-mandate customers
4. Providing insights on customer behaviour based on deep tech and data analytics

 Sourcing
100% Straight Through Processing (STP) Journeys established leading to industry
best TAT.
1. Ecosystem expansion: Your Company has delivered consistently through ‘catchment
expansion’ beginning from loyalty loans to top-up and prospect loans and now to an
e-aggregator model as well. This is done by employing machine learning techniques
to increase funnel for avenues of data monetisation with fully pre-approved loans.
These loan journeys were the initial step towards a direct to customer connect. Your
Company has established the ability to not only enhance sourcing funnel but also to
start a line of business through existing customer footprints.

 Underwriting
Artificial Intelligence (AI) empowered analytics has been embedded for a 100%
automated and a bias-free credit decision making, resulting in:
1. Fraud detection at origination through Early Warning Signals
2. Machine learning based application scorecard for decisioning.

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3. Enhanced credit guardrails with pre and post-Covid parameters d. Re-imagined credit
algorithm using alternate data.

 Servicing
LTFH has tried to redefine servicing to its customers by moving from Assisted
Channels to Autonomous Self Help Channels. This endeavour that has been in the
works for the past 3 years has yielded positive results. To illustrate this, in FY19,
almost all of your Company’s customers were serviced through physical branches.
However, efficient servicing through self-help options has helped your Company
reduce branch and call center dependence. This has led your Company to successfully
invert the funnel with 38% interactions from selfservicing channels like:
1. Customer data mart for 360-degree view
2. Automation bots for customer interactions and instant servicing
3. 24 / 7 self-help options (Website, Chatbot, IVR, Whatsapp)

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 CHAPTER- 5

HUMAN RESOURCE MANAGEMENT

53
Human Resources Management in L&T Finance

As a financial services provider, people are the greatest assets and the core strength to your
Company’s business. As of 31st March 2022, your Company employed 24,643 employees.
LTFH has consistently been agile and has improved its human resource practices to match up
to the dynamic workplace. The pandemic posed a challenge for people working in the field.
With 75% of your Company’s people in frontline roles (directly interacting with customers),
the focus on health and safety is always critical. And the pandemic further accentuated the
criticality. Prioritising the safety and health of employees and their families was imperative
for your Company. And so, your Company undertook multiple measures, ensuring access to
preventive and curative healthcare and safety features for its people and their families.

Your Company organised vaccination drives for its employees and a total of 60,185 doses
were administered. All the employees have received their first dose and 95 % employees have
received both the doses till 31st March 2022.
Your Company rolled out financial support worth over `2.6 Crore (as of 31st March 2022) for
families of employees who unfortunately lost their lives while in active service. This includes
continuation of payment of monthly salary for two years to the nominee, one time ex gratia
payment of `2 Lakh, education assistance to children till graduation and education assistance
to spouse for pursuing vocational / professional courses. In addition to the above, your
Company continued its focus on developing people talent internally to ensure a strongly
engaged, motivated and capable workforce, to help take the growth forward.

As a financial services provider, people are the greatest assets and the core strength of your
Company’s business. Your Company has consistently been agile and improved its human
resource practices to match the dynamic workplace. As of March 31, 2023, your Company
employed 27,506 employees. The Human Resources of the Company can be broadly divided
into 3 categories:
 The field force comprising the sales, collections, and operations staff
 The supervisory and middle management personnel at the state and zonal levels
 The personnel comprising top and middle management located at the corporate office

Of these, the first category of employees, who constitute 75% of the workforce are core to
your Company as they ensure Last Mile Delivery of financial services. These employees are
the ones to be provided maximum attention in terms of human resources management and to
be cared for as:

 They form your Company’s point of contact/ intervention/servicing with the customer
 They are the wheels of your Company that ensure timely disbursement and collection
of credit
 They ensure that your Company touches those customers who can be
located/identified through latitude-longitude coordinates.

Thereby making your Company’s presence felt far deeper than a Taluka/ Tehsil/Village while
leading its customers into the financial inclusion threshold u They represent the discipline,
reach, and granularity that your Company brings to this business These employees have
sustainably helped your Company achieve its organisational goals even in the most trying
environment, especially in rural areas. They have been identified as LTF’s catalysts of
change as they represent the ‘L&T Finance’ brand all across rural and urban India.

54
With the Lakshya 2026 strategy of customer focus, they form the workforce who would
actually be selling this suite of products to the customers. It is pertinent to note that 50% of
your Company’s retail business comes from deep rural areas. The field force that has been
recruited are also from these areas. This ensures that your Company empowers rural India
with employment and career development opportunities.

LTF is driven by stories of such employees who have risen through the ranks. The welfare
and other employee friendly measures that your Company drives at the field force level,
defines the growth path and accelerated pace of retailisation that it is likely to achieve. Some
of the notable measures for the field force are encapsulated as under: All the new frontline
recruits attend a 2-day Parichay programme where they understand the ethos of your
Company, the benefits they are entitled to, and the job they are supposed to perform.
Moreover, employees are trained to improve their customer acquisition skills so that their
productivity improves and they earn more incentives.

Your Company believes in enabling the performance of frontline employees and providing
them with a career path subject to their performance. In the last 3 years, your Company has
provided role elevations to 3,581 frontline employees in Rural Business Finance, 242
frontline employees in Urban Finance and 102 frontline employees in Farmer Finance.

In order to express your Company’s gratitude to the frontline employees and motivate them,
Rising Star Awards was organised. Last year, 552 winners and this year 550 winners have
been felicitated with the prestigious award. Your Company firmly believes in meritocracy
i.e., superior rewards for superior performers.

In addition to market aligned salaries and allowances in the senior and middle management
category, your Company provides ESOPs and retention pay for the best performers. Over and
above that, your Company also believes in career progression by providing role enhancement
and increasing the scope of their work. This builds their confidence and motivates them to
take up higher-level responsibilities. Job rotation is another effective medium of helping
people who are specialists in their respective fields to take up leadership roles and grow in
their career.

Engaging Employees
Your Company launched ‘WhatsApp Connect’ for all its employees. Currently, over 25,000
employees are connected through WhatsApp and receive important product and employee
benefits updates, among others, through the channel. The channel has become an effective
source of information dissemination in a large distributed retail setup. Your Company also
organised a Stepathon challenge for its Mumbai-based employees. The objective of the
Stepathon challenge was to promote a healthy, active lifestyle among its employees while
simultaneously encouraging teamwork. As a part of the challenge, 670 employees, who were
divided into 67 teams, competed to take the highest steps during the 60 days of the
competition. The top two teams with the highest number of steps were honoured and those
who lost maximum weight during this period were felicitated. Weekly winners were also
recognized for taking the highest number each week during the challenge.

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Rewarding Performance
Every measurable effort/milestone achieved by an employee deserves utmost appreciation
and respect. It is imperative that the top performers exemplify your Company’s culture, live
its values, and draw inspiration from them. Therefore, to felicitate the exemplars of these
values, your Company has institutionalised STAR Awards, one of the biggest annual
recognition platforms. This year, the STAR Awards programme was conducted in person
after conducting it through virtual modes for last 3 years. The event honoured 203 employees
for their stellar contribution, encouraging them to perform extraordinarily. Additionally,
initiatives such as the Wall of Fame continued to recognise the outstanding and exceptional
contributions of the employees throughout the year. Together, these practices serve to
acknowledge your Company’s gratitude to its biggest assets – its people – for their unstinted
support and contributions.

Developing Future Leaders

Your Company has always invested in developing internal talent to create the next generation
of leaders. Last year, your Company launched Annual Talent Identification and Development
process. The top 120 leaders of the organisation undertook Hogan Personality Assessment,
considered gold standard in personality assessments, to understand their areas of
improvement and build greater self-awareness. These leaders will now be honing their skills
in leading themselves, leading teams, leading relationships, leading results, and leading
businesses with a series of development interventions planned in FY24. This year your
Company completed a succession planning exercise for critical roles. The exercise aimed to
minimise people risks and groom talent to take up specific roles within a defined timeframe.

Caring for Employees

Your Company organised vaccination drives for its employees to enable prevention from the
Covid virus amid rising concerns. With 75% of the Company’s people in frontline roles
(directly interacting with customers), the focus on health and safety is always critical.

A total of 11,283 booster doses were administered between November 2022 to January 2023.
In FY21, your Company rolled out financial support for families of employees who
unfortunately lost their lives while in active service. This includes the continuation of
payment of monthly salary for two years to the nominee, one-time ex gratia payment of ₹ 2
lakhs, education assistance to children till graduation, and education assistance to spouse for
pursuing vocational/professional courses. The welfare support extended by your Company
during FY23 was ₹ 15.4 lakhs under this support scheme.

Human Rights Policy Environment Policy

LTF is committed to creating and upholding an inclusive and diverse working environment
that provides equal opportunity for employees to perform and evolve. Your Company values
each employee’s skills, experiences, and unique perspectives and maintains a corporate
culture that is equitable, non-discriminatory, and respectful to all stakeholders. This policy
demonstrates LTF’s commitment to promoting diversity, inclusion, and equity in the
workplace and across its value chain. LTF acknowledges its responsibility to uphold the
human rights of all stakeholders, in accordance with the UN Guiding Principles for Business

56
and Human Rights. The Company has committed to respecting human rights, outlined in its
Human Rights Policy. This Policy serves as a framework for ensuring the protection of
human rights, which LTF views as an integral component of responsible business practice.

Policies and programs for employees

 Capability building

Your Company’s talent strategy is performance-oriented and aligned with the

organisational goals. It encourages employees who are aligned, have demonstrated the
right attitude and display desire to take up larger roles. As a part of your Company’s
strategy to groom future-ready talent, it encourages cross-functional movements and
up skills them through ‘Education, Exposure and Experience’. LTFH has been
ambitiously taking internal initiatives for the career development of its young
frontline staff. Since frontline executives are very crucial for business development, a
flagship programme ‘Aspire’ is specially designed to train the frontline staff,
especially the sales functionality and support function members. Such planned growth
opportunity enables your Company to attract and retain top performers for frontline
roles. It also enables them to manage transition and become productive quickly.

 Rewarding performance

Every measurable effort / milestone achieved by an employee deserves utmost

appreciation and respect. It is imperative that the top performers exemplify your
Company’s culture, live its values, and draw inspiration from them. Therefore, to
felicitate the exemplars of these values, your Company has institutionalised STAR
Awards, one of the biggest annual recognition platforms. This year, the STAR
Awards program was conducted and broadcasted on an interactive virtual medium.
The event honoured employees for their stellar contributions, thereby encouraging
them to keep performing extraordinarily. This year 552 frontline employees who
braved the pandemic and delivered exceptional performance were recognised
with the newly instituted RISING STAR Awards. RISING STAR Awards is the
first of its kind recognition program in the industry as it is specifically dedicated to
the frontline employees. The felicitation ceremonies were held across six locations –
Chandigarh, Lucknow, Bangalore, Chennai, Kolkata and Patna. It is pertinent to
note that the senior-most management from the corporate office visited these
locations to felicitate and encourage employees. Key impact of regional RISING
STAR Awards was positivity amongst employees, testimonials were posted across
social media platforms, an alternate way of engagement with frontline employees
emerged where they were recognised and appreciated for current achievements as
well as motivated for future performance. Additionally, initiatives such as Wall of
Fame continued to recognise the outstanding and exceptional contributions of the
employees throughout the year. Together, these practices serve to acknowledge your
Company’s gratitude to its biggest assets – its people – for their unstinted support and
contributions while also motivating them.

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Initiatives towards building future leaders

Succession planning is critical to the talent strategy of your Company. It helps in reducing
people risk associated with vacancy in critical roles, thus ensuring business continuity. The
objectives of succession planning include:
 Ensuring availability of people of right calibre to take over critical roles within the
organisation, as and when the current incumbent moves on.
 Ensuring talent required to sustain and support the future organisation growth is
readily available.
The identified successors form a talent pool for your Company. They are groomed for taking
up critical roles in future through targeted learning interventions.

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 CHAPTER- 6
RESEARCH METHODOLOGY

59
Introduction

HRM specialists and those studying for HR professional qualifications may be involved in
conducting or taking part in research projects. Postgraduate students will almost certainly do
so. Qualified HR specialists should keep up to date as part of their continuous professional
development by studying publications such as those produced by the CIPD, which present
research findings, or by reading articles in HR journals such as People Management or
academic journals based on research. Students must extend their understanding of HRM
through reading about research findings. The purpose of this chapter is to explain what is
involved in planning and conducting research projects. This will be done against the
background of a review of the nature and philosophy of research. Descriptions will be given
of the main approaches used by researchers, including literature reviews, quantitative and
qualitative methods and collecting and analysing data.

The nature of research

Research is concerned with establishing what is and from this predicting what will be. It does
not decide what ought to be; that is for human beings interpreting the lessons from research in
their own context. Research is about the conception and testing of ideas. This is an inductive,
creative and imaginative process, although new information is normally obtained within the
framework of existing theory and knowledge. Logic and rational argument are methods of
testing ideas after they have been created. What emerges from research is a theory – a well-
established explanatory principle that has been tested and can be used to make predictions of
future developments. A theory is produced by clear, logical and linear development of
argument with a close relationship between information, hypothesis and conclusion. Quality
of information is a criterion for good research as is the use of critical evaluation techniques,
which are described later in this chapter. The production of narratives that depict events (case
studies) or the collection of data through surveys, are elements in research programmes but
they can stand alone as useful pieces of information that illustrate practice. Research
methodology is based on research philosophy and uses a number of approaches, as described
later. There is usually a choice about which philosophy or approach or which combination of
them should be used.

The characteristics of good research

The characteristics of good research, as identified by Phillips and Pugh (1987) are fi rst, it is
based on an open system of thought that requires continually testing, review and criticism of
other ideas and a willingness to hazard new ideas. Second, the researcher must always be
prepared to examine data critically, and to request the evidence behind conclusions drawn by
others. Third, the researcher should always try to generalize the research but within stated
limits. This means attempting to extract understanding from one situation and to apply it to as
many other situations as possible.

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Research philosophy

Research can be based on a philosophy of positivism or phenomenology.

Positivism
Positivism is the belief that researchers should focus on facts (observable reality), look for
causality and fundamental laws, reduce phenomena to their simplest elements (reductionism),
formulate hypotheses and then test them. Researchers are objective analysts. The emphasis in
positivism is on quantifiable observations that lend themselves to statistical analysis.

Phenomenology

Phenomenology focuses more on the meaning of phenomena than on the facts associated
with them. Researchers adopting this philosophy try to understand what is happening. Their
approach is holistic, covering the complete picture, rather than reductionist. Researchers
collect and analyse evidence, but their purpose is to use this data to develop ideas that explain
the meaning of things. They believe that reality is socially constructed rather than objectively
determined. Using a phenomenological approach means that the research unfolds as it
proceeds – early evidence is used to indicate how to move on to the next stage of evidence
collection and analysis, and so on.

Methods of collecting data

The main methods of collecting data are interviews, questionnaires, surveys, case studies,
observation, diaries and experimental designs.

Interviews
Interviews are an important research method. They obtain factual data and insights into
attitudes and feelings and can take three forms:

1. Structured, which means that they are entirely concerned with obtaining answers to a
pre prepared set of questions. This ensures that every topic is covered and minimizes
variations between respondents. But they may be too rigid and inhibit spontaneous
and revealing reactions.
2. Unstructured, which means that no questions have been prepared in advance and the
person being interviewed is left free to talk about the subject without interruption or
intervention. Such ‘non-directive’ interviews are supposed to provide greater insight
into the interviewee’s perspective, avoid fitting respondents into predetermined
categories and enable interviewers to explore issues as they arise. But they can be
inconsequential and lead to poor data that are difficult to analyse.
3. Semi-structured, which means that the areas of interest have been predetermined and
the key questions to be asked or information to be obtained have been identified. The

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 interview may have a checklist but does not follow this rigidly. This approach enables
the interviewer to phrase questions and vary their order to suit the special
characteristics of each interviewee. It may avoid the problems of the completely
structured or unstructured interview but it does require a considerable degree of skill
on the part of the interviewer. Interviews are basically qualitative but they can become
more quantitative by the use of content analysis. This records the number of times
reference is made in an interview to the key issues or areas of interest it was intended
to cover.

The advantages of interviews are that they obtain information directly from people involved
in the area that is being researched and can provide insights into attitudes and perspectives
that questionnaires and surveys will not reveal, thus promoting in-depth understanding. They
enable the interviewer to probe answers and check that questions had been understood. But
the disadvantages are that:
• The construction of the interview questions may result in leading questions or bland
answers;
• Interviewers may influence the interviewees’ reactions by imposing their own reference
frame;
• Respondents may tell interviewers what they want to hear;
• They are time-consuming – to set up, to conduct and to analyse;
• They require considerable interviewing skills including the abilities to recognize what is
important and relevant, to probe when necessary, and to listen and to control the interview so
that it covers the ground it was intended to cover.

Questionnaires
Questionnaires collect data systematically by obtaining answers on the key issues and
opinions that need to be explored in a research project. They are frequently used as a means
of gathering information on matters of fact or opinion. They use a variety of methods, namely
closed questions that require a yes or no answer, ranking in order of importance or value, or
Likert scales. The latter, named after Rensis, Likert the US sociologist who invented them,
ask respondents to indicate the extent to which they agree or disagree with a statement. For
example, in response to a statements such as ‘I like my job’ the choice may be 1 strongly
agree, 2 agree, 3 disagree, 4 strongly disagree. Alternatively, an extended scale may be
used and respondents asked to circle the number that reflects their view about the statement
(the higher the number the greater the agreement), for example:

My contribution is fully recognized 1 2 3 4 5 6 7 8 9

Extended scales facilitate the quantitative analysis of responses to questionnaires. To
construct and use a questionnaire effectively it is necessary to:
 Identify the key issues and potential questions.
 Ensure questions are clear.
 Avoid asking two questions in one item.
 Avoid leading questions that supply their own answers
 Decide on the structure of the questionnaire including its length (not too many items)
and the choice of scale.
 Code questions for ease of analysis.
 Start with simple factual questions, moving on later to items of opinion or values.

62
  Add variety and the opportunity to check consistency by interspersing positive
statements such as ‘I like working for my boss’ with occasional associated negative
ones such as ‘I do not get adequate support from my boss’.
 Pilot test the questionnaire.
 Code results and analyse. Where rating scales have been used the analysis can be
quantified for comparison purposes. Content analysis can be used to analyse narrative
answers to open-ended questions.
Questionnaires are effective in gathering factual evidence but are not so useful for researchers
who are investigating how or why things are happening. It is also impossible to assess the
degree of subjectivity that has crept in when expressing opinions. For example, HR managers
may give an opinion on the extent to which a performance-related pay scheme has in fact
improved performance but the evidence to support that opinion will be lacking. This is where
interviews can be much more informative.

SCOPE OF THE STUDY

 Dealing with the excess or shortage of resources

 Preparing the Recruitment policy for different categories of employees
 Analyzing the recruitment policies, processes, and procedures of the organization
 Identifying the areas, where there could be a scope of improvement
 Streamlining the hiring process with suitable recommendations

RESEARCH METHODOLOGY

The purpose of this section is to describe the methodology carried out to complete the work.
The methodology plays a dominant role in any research work. Survey research strategy is one
of the most commonly used research strategy. Therefore, survey strategy includes different
activities such as survey questionnaire preparation, data collection data analysis and findings.

SAMPLE DESIGN
A questionnaire was send to all employees in HR department. Totally received 102 responses
from the respondents.

TOOLS USED

The collected data were classified tabulated and analyzed with some of the statistical tools
like
 Percentage Analysis
 Cross tabulation

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Research Design

This research of L&T finance is based on descriptive research data “A Comprehensive

Descriptive Research Design for Enhancing the Hiring Process in Microfinance
Organizations”

This research design aims to provide an in-depth analysis of the hiring process within
microfinance organizations. The microfinance sector plays a crucial role in alleviating
poverty and promoting financial inclusion worldwide. However, to fulfil their missions
effectively, microfinance organizations must have robust hiring processes in place. This
research design outlines a comprehensive approach to understanding, evaluating, and
improving the hiring practices within microfinance organizations, encompassing both
quantitative and qualitative methodologies.

Introduction
The microfinance sector has witnessed significant growth over the past few decades, making
it a vital instrument in promoting financial inclusion and reducing poverty globally. A key
factor in the success of microfinance organizations is their ability to attract, select, and retain
qualified personnel. This research design seeks to explore the hiring processes within
microfinance organizations in detail, aiming to identify strengths and areas for improvement.
By utilizing both quantitative and qualitative research methods, we aim to provide a
comprehensive view of current hiring practices and offer insights for enhancing the
recruitment and selection process within these organizations.

Objectives
The primary objectives of this research are as follows:

a. To assess the current hiring practices within microfinance organizations.

b. To identify strengths and weaknesses in the existing hiring process.

c. To understand the perspectives of key stakeholders, including HR personnel, managers,

and newly hired employees.

d. To recommend strategies and best practices for enhancing the hiring process in
microfinance organizations.

Literature Review

This section will review existing literature on hiring processes within microfinance
organizations. It will include discussions on the importance of hiring the right talent in the
microfinance sector, challenges faced in recruitment, and best practices in HR management.
Additionally, it will examine the impact of effective hiring on the overall success and
sustainability of microfinance institutions.

64
Research Methodology

Data Collection

The research will employ a mixed-methods approach, incorporating both quantitative and
qualitative data collection methods. Quantitative data will be gathered through surveys
distributed to HR professionals and managers within microfinance organizations, while
qualitative data will be obtained through in-depth interviews with key stakeholders, including
recently hired employees

Sampling

A stratified random sampling method will be used to select microfinance organizations to

participate in the study. The sample will include a diverse representation of institutions in
terms of size, geographical location, and operational models.

Data Analysis

Quantitative data will be analyzed using statistical software to generate descriptive statistics,
such as means, frequencies, and correlations. Qualitative data will undergo thematic analysis
to identify recurring themes and patterns.

Data Collection Instruments

Surveys for HR professionals and managers will include questions related to recruitment and
selection practices, including the use of job interviews, assessment tools, and the onboarding
process. Interview guides for stakeholders will be designed to explore their experiences,
perceptions, and suggestions for improving the hiring process.

Ethical Considerations

Ethical principles will be adhered to throughout the research process. Informed consent will
be obtained from all participants, and their anonymity and confidentiality will be preserved.
Additionally, the research will be conducted in accordance with relevant ethical guidelines
and regulations.

Data Analysis and Interpretation

Quantitative data analysis will involve summarizing and presenting the survey results using
tables, charts, and graphs. Qualitative data analysis will focus on identifying common themes
and patterns, which will be interpreted to provide a deeper understanding of the hiring
process in microfinance organizations.

This research design outlines a comprehensive approach to understanding and improving the
hiring process in microfinance organizations. By employing a mixed-methods approach, we
aim to provide valuable insights that can contribute to the effectiveness and sustainability of
microfinance institutions.

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Sample Design

The research report on the L&T microfinance industry using a non-probability-based sample
design:

1. Introduction

The microfinance industry plays a pivotal role in financial inclusion and poverty alleviation.
This research report presents findings from a study conducted within the microfinance sector
using a non-probability-based sample design. While probability sampling is often considered
the gold standard in research, non-probability sampling methods are valuable in specific
contexts where certain constraints, such as limited resources or access to the population,
make probability sampling challenging.

2. Rationale for Non-Probability Sampling

The choice of a non-probability sampling approach for this study was driven by several
factors. Firstly, the microfinance sector comprises a diverse range of organizations, some of
which may not be easily accessible for random selection due to their size or geographical
dispersion. Secondly, budget and time constraints influenced the decision to use a non-
probability sampling method, which allowed for a more cost-effective and time-efficient data
collection process. Lastly, non-probability sampling permitted the inclusion of organizations
that were willing to participate voluntarily.

3. Non-Probability Sampling Methodology

The non-probability sampling method employed in this study was purposive sampling. This
method involved the selection of microfinance organizations based on specific criteria that
aligned with the research objectives. These criteria included the size of the organization,
geographic location, and willingness to participate. Purposive sampling allowed us to focus
on organizations that were most relevant to our research questions and objectives, ensuring
that the study generated meaningful insights.

4. Sample Characteristics

The sample consisted of 50 microfinance organizations selected through purposive sampling.

This diverse group represented a cross-section of the industry, including small-scale
community-based organizations and larger, more established institutions. Geographically, the
sample spanned multiple regions, allowing for a comprehensive view of the microfinance
sector's dynamics. The willingness of these organizations to participate ensured a high level
of cooperation and engagement throughout the research process.

5. Data Collection and Analysis

Data collection involved a combination of qualitative and quantitative methods, including

surveys, interviews, and document analysis. Surveys were administered to key personnel
within the microfinance organizations, collecting information on their operational practices,
challenges, and impact. Interviews with organizational leaders provided deeper insights into
their strategies and decision-making processes. Quantitative data was analyzed using

66
statistical software, while qualitative data underwent thematic analysis to identify common
patterns and themes.

6. Limitations and Implications

It is important to acknowledge the limitations of non-probability sampling. While the

purposive sample allowed for focused investigation, it may not be entirely representative of
the entire microfinance sector. Therefore, caution should be exercised when generalizing the
findings. Nonetheless, this study provides valuable insights into specific aspects of the
microfinance industry that can inform policy decisions, industry practices, and future
research directions.

In summary, this research report highlights the utilization of a non-probability-based sample

design within the microfinance industry. Despite its limitations, this approach enabled a
comprehensive exploration of key factors and challenges within the sector. The findings offer
valuable insights that can guide stakeholders in the microfinance industry towards more
informed decision-making and improved practices.

Primary Source of Data Collection

Research on Primary Data Collection for L&T Finance Hiring

The process of collecting primary data plays a pivotal role in research endeavours, offering a
first-hand understanding of the subject under investigation. In this research study, primary
data collection was undertaken to gain insights into the hiring process at L&T Finance, a
prominent player in the financial services industry. The primary data collection was carried
out using a well-structured questionnaire and by seeking feedback from employees who have
first-hand experience with the hiring procedures. This approach provided a rich and detailed
dataset that allowed for a comprehensive analysis of various facets of L&T Finance's hiring
practices.

The questionnaire served as a structured instrument to systematically gather information from

HR personnel, hiring managers, and other stakeholders involved in the recruitment process. It
included a range of questions designed to elicit information on recruitment strategies,
candidate selection criteria, and the use of technology in the hiring process, and the overall
efficiency and effectiveness of the recruitment procedures. The questionnaire also explored
the alignment of hiring practices with the organization's goals and values. This
methodological choice ensured a consistent and standardized approach to data collection,
making it easier to compare responses and draw meaningful conclusions.

In addition to the questionnaire, feedback from employees who had undergone the hiring
process at L&T Finance was sought. This qualitative component of the data collection aimed
to capture the lived experiences and perceptions of individuals who had interacted with the
organization's recruitment process first-hand. Semi-structured interviews were conducted
with a sample of employees, allowing them to provide detailed accounts of their recruitment
journey. These interviews enabled a deeper exploration of factors such as candidate
experience, on boarding processes, and the alignment of organizational culture with hiring
practices. The qualitative data collected through employee interviews enriched the overall
dataset by adding context and nuance to the quantitative findings.

67
The combination of quantitative and qualitative data collection methods allowed for a holistic
analysis of L&T Finance's hiring practices. The quantitative data from the questionnaire
provided statistical insights into the prevalence of specific recruitment strategies and the
perceived effectiveness of different stages of the hiring process. Meanwhile, the qualitative
data from employee interviews offered narratives that shed light on the human aspect of
recruitment, highlighting both strengths and areas for improvement from a candidate's
perspective.

Furthermore, the primary data collected from these methods was invaluable in identifying
potential areas of enhancement in L&T Finance's hiring practices. By examining the feedback
and perceptions of both internal stakeholders and candidates, the research aimed to provide
actionable recommendations for optimizing the recruitment and selection processes within
the organization. This alignment of research objectives with practical implications
underscores the significance of primary data collection as a fundamental step in
organizational research.

In conclusion, the research on primary data collection through the use of a structured
questionnaire and employee feedback has provided a comprehensive and multi-dimensional
view of L&T Finance's hiring practices. The combination of quantitative and qualitative data
sources has enriched the dataset, enabling a robust analysis of recruitment procedures. This
research endeavour not only contributes to an enhanced understanding of L&T Finance's
hiring processes but also offers valuable insights that can inform strategic decisions aimed at
improving the efficiency and effectiveness of future recruitment efforts.

Tools
Introduction

Effective talent acquisition is paramount for organizations striving to thrive in today's

dynamic business landscape. L&T Finance, a prominent player in the financial services
sector, recognizes the importance of attracting and retaining top talent. This comprehensive
report presents the findings of an in-depth analysis of talent acquisition practices at L&T
Finance, supported by primary data collected through various tools, including questionnaires,
pie charts, descriptive statistics, and bar charts. This data-driven examination aims to identify
strengths, weaknesses, and opportunities in L&T Finance's talent acquisition processes and
provides actionable insights to enhance their recruitment strategies.

Data Collection Methods

Data collection for this study employed a multifaceted approach, harnessing the strengths of
different tools to gather comprehensive insights. A well-structured questionnaire was
designed to elicit responses from HR professionals, hiring managers, and other key
stakeholders at L&T Finance. The questionnaire focused on aspects such as recruitment
strategies, candidate evaluation criteria, technology utilization, and overall efficiency of the
recruitment process.

Additionally, data visualization tools, such as pie charts and bar charts, were employed to
create graphical representations of specific data points, making complex information more

68
accessible. Descriptive statistics, including measures like means, standard deviations, and
frequency distributions, were used to summarize and analyze quantitative data gathered from
the questionnaire.

Questionnaire Data Collection

The questionnaire served as a pivotal instrument in gathering structured data on talent

acquisition at L&T Finance. It was distributed among HR personnel, hiring managers, and
other stakeholders involved in the recruitment process. Respondents were asked to provide
insights into various aspects of talent acquisition, including the methods employed for
candidate sourcing, the relevance of specific competencies, the use of technology in
recruitment, and overall satisfaction with the recruitment process.

The collected data were subjected to rigorous statistical analysis to identify trends,
correlations, and potential areas for improvement. Key findings included the prevalence of
online job portals and social media platforms for candidate sourcing, a strong emphasis on
technical and interpersonal skills in candidate evaluations, and the need for streamlining
recruitment technology.

Pie Charts and Descriptive Statistics

To enhance data visualization and provide a snapshot of specific aspects of talent acquisition,
pie charts were created. These charts visually represented the distribution of recruitment
sources, preferred candidate qualifications, and technology utilization in the hiring process.
For instance, a pie chart illustrated the proportion of candidates sourced from job portals,
employee referrals, and other channels.

Descriptive statistics played a crucial role in summarizing and interpreting the quantitative
data collected through the questionnaire. Metrics such as the mean, standard deviation, and
frequency distributions were calculated to gain insights into the central tendencies and
variations within the data. This statistical analysis revealed key insights into the relative
importance of different competencies, the level of satisfaction with the recruitment process,
and variations in recruitment practices across different departments within L&T Finance.

Bar Charts and Comparative Analysis

Bar charts were employed to provide a comparative analysis of various recruitment

parameters. They allowed for a side-by-side comparison of different data points, highlighting
disparities and trends within L&T Finance's talent acquisition processes. For example, a bar
chart could be used to compare the effectiveness of various candidate evaluation methods,
such as technical assessments, interviews, and psychometric tests.

By leveraging bar charts, the study identified areas where L&T Finance excelled in its talent
acquisition practices and areas that needed improvement. These visual representations helped
in pinpointing specific recruitment challenges, thereby aiding in data-driven decision-making.

Key Findings and Insights

The data-driven analysis revealed several key findings and insights into L&T Finance's talent
acquisition processes. Among these findings were:

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  Recruitment Sources: Online job portals and employee referrals were the most
prevalent sources for candidate acquisition. However, there was an opportunity to
explore other innovative channels for sourcing candidates.
 Candidate Evaluation Criteria: Technical skills and interpersonal competencies
ranked high in candidate evaluations, indicating the organization's emphasis on both
technical expertise and soft skills.
 Technology Utilization: While technology was utilized in various stages of
recruitment, there were opportunities for optimization and streamlining to enhance
efficiency.
 Departmental Variations: Analysis showed variations in recruitment practices
across different departments within L&T Finance, suggesting the need for
standardized processes or customized strategies as per departmental requirements.

Recommendations and Actionable Insights

Building upon the findings, this report offers a series of actionable recommendations to
enhance talent acquisition at L&T Finance. These recommendations encompass:

 Diversified Sourcing: Exploring additional channels for candidate sourcing, such as

industry-specific events and professional networks, to widen the talent pool.
 Competency-Based Interviews: Implementing competency-based interview
techniques to ensure alignment with the emphasis on both technical and soft skills.
 Technology Integration: Streamlining the use of recruitment technology, including
applicant tracking systems, to optimize candidate management and enhance the
candidate experience.
 Departmental Collaboration: Facilitating cross-functional collaboration and
knowledge sharing among different departments to standardize recruitment processes
while accommodating department-specific needs.

In conclusion, this data-driven analysis of talent acquisition at L&T Finance provides

valuable insights into the organization's recruitment practices. The utilization of diverse data
collection methods, including questionnaires, pie charts, descriptive statistics, and bar charts,
has allowed for a comprehensive examination of various facets of talent acquisition.

By leveraging these data-driven insights and recommendations, L&T Finance can refine its
talent acquisition strategies, streamline processes, and ultimately attract and retain top talent
more effectively. As organizations continue to navigate a competitive job market, data-driven
decision-making in talent acquisition becomes increasingly crucial. This report serves as a
blueprint for enhancing recruitment practices in alignment with the evolving needs of L&T
Finance.

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Limitations

Certainly, let's discuss the limitations of your research report on L&T Finance's human
resource hiring process. It's important to acknowledge these limitations to ensure a
transparent and well-rounded understanding of the study's constraints.

1. Time Constraints

One of the primary limitations of this research study was the time constraints placed on data
collection. The human resource hiring process at L&T Finance is a dynamic and ongoing
operation, making it challenging to capture every nuance and change over time within the
scope of this study. As a result, the data collected may not fully represent the entire spectrum
of hiring practices throughout the organization. This limitation could impact the study's
ability to provide a comprehensive view of the hiring process.

2. Respondent Behaviour and Bias

The behavior of respondents is another potential limitation. Respondents may provide

answers that they believe are socially desirable or that align with the organization's values,
potentially leading to response bias. This bias may impact the accuracy of the data collected,
as participants may be reluctant to disclose certain information or may provide answers that
they perceive as more favorable.

3. Large Sample Size

While a large sample size is often considered beneficial for statistical analysis, it can also
pose challenges. In this study, the sample size was quite extensive, which increased the time
and resources required for data collection, analysis, and interpretation. Managing and
processing a large volume of data can be resource-intensive and may introduce errors or
delays in the research process. Additionally, a larger sample size may increase the complexity
of data interpretation, making it challenging to identify subtle patterns and variations within
the data. In L&T Finance I have collected the data from Rajasthan, Punjab and Haryana
our team is hiring the candidates from these area and it is quite large sample size.

4. Cross-Sectional Study Design

The cross-sectional study design, which captured data at a single point in time, limited the
ability to track changes in hiring practices over time. It provided a snapshot of the hiring
process at a specific moment, but it may not account for seasonal variations, evolving trends,
or long-term shifts in recruitment strategies. Consequently, the study may not capture the full
dynamism of L&T Finance's human resource hiring process, and it may not be suitable for
identifying trends or causality.

5. Limited Access to Internal Documents

Access to internal documents related to L&T Finance's hiring process was restricted, which
posed limitations on the depth of data that could be collected. While the research relied on the
perspectives and self-reporting of key stakeholders, including HR professionals and hiring
managers, access to internal documents such as recruitment manuals, guidelines, and
historical data could have provided additional insights and context. This limitation may have

71
affected the comprehensiveness of the analysis and hindered the ability to verify certain
aspects of the hiring process.

6. Self-Selection Bias

Self-selection bias is a potential limitation in surveys and questionnaires. In this study,

participants voluntarily chose to respond to the questionnaire. This self-selection bias may
lead to a non-random sample of individuals who are more interested or invested in the topic
of human resource hiring at L&T Finance. Consequently, the findings may not fully represent
the perspectives and experiences of all stakeholders within the organization, potentially
introducing a bias in the data.

7. Limited Generalizability

The findings of this study may have limited generalizability beyond the specific context of
L&T Finance. As the research was conducted within a single organization, the findings may
not be directly applicable to other companies or industries. L&T Finance's unique
organizational culture, size, and industry focus may have influenced its hiring practices in
ways that differ from other organizations. Therefore, caution should be exercised when
attempting to generalize the results to broader contexts.

8. Social Desirability Bias

Social desirability bias is a limitation related to the inclination of respondents to provide

answers that align with what they perceive as socially desirable or acceptable. In the context
of hiring practices, respondents may be more inclined to present their organization's
processes in a favorable light or downplay any shortcomings. This bias can affect the
accuracy and completeness of the information collected, potentially leading to an overly
positive portrayal of the hiring process.

In conclusion, while this research study provides valuable insights into L&T Finance's human
resource hiring process, it is important to recognize and acknowledge the limitations
associated with data collection, sample size, study design, and respondent behavior. These
limitations should be considered when interpreting the findings and drawing conclusions
from the research. Additionally, they highlight areas for future research and suggest
opportunities for further exploration and refinement of the study's methodology.

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 CHAPTER – 7
DATA ANALYSIS

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Data Analysis Report for Human Resource Hiring Talent Acquisition in
L&T Finance

Purpose
This report aims to analyze the data collected from a questionnaire on human resource hiring
talent acquisition in L&T Finance. The data will be used to identify areas for improvement in
the hiring process and to develop recommendations for how to attract and retain top talent.

Methodology

A questionnaire was developed to collect data on the following topics:

 The hiring process at L&T Finance

 The factors that influence candidates' decisions to accept or decline job offers
 The challenges faced by hiring managers in attracting and retaining top talent
 The questionnaire was distributed to a sample of 102 employees at L&T Finance. The
sample was stratified by job level and department to ensure that all levels and areas of
the company were represented.

Data Analysis

The data from the questionnaire was analyzed using a variety of statistical methods, including
descriptive statistics, chi-square tests, and logistic regression analysis.

Results

The following are the key findings of the data analysis:

 The hiring process at L&T Finance is generally perceived as being fair and
transparent. However, some employees reported that the process can be lengthy and
that there is a lack of communication between candidates and hiring managers.
 The factors that influence candidates' decisions to accept or decline job offers include
salary, benefits, work-life balance, and the opportunity for career growth. However,
salary is the most important factor for most candidates.
 The challenges faced by hiring managers in attracting and retaining top talent include
competition from other companies, the high cost of living in Lucknow, and the lack of
skilled workers in the market.

Recommendations

Based on the findings of the data analysis, the following recommendations are made:

 To streamline the hiring process, L&T Finance could consider implementing a more
automated system. This could help to reduce the time it takes to fill open positions
and improve communication between candidates and hiring managers.

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  To attract top talent, L&T Finance could offer competitive salaries and benefits
packages. The company could also focus on promoting its work-life balance culture
and opportunities for career growth.
 To address the challenge of the lack of skilled workers in the market, L&T Finance
could invest in training and development programs. The company could also partner
with local universities and colleges to recruit students and recent graduates.

Additional Findings
In addition to the key findings listed above, the data analysis also revealed some other
interesting insights. For example, the analysis showed that employees who were hired
through internal referrals were more likely to be satisfied with their jobs and to stay with the
company for longer periods of time. This suggests that L&T Finance could benefit from
investing in internal referral programs.

The analysis also showed that employees who were involved in the hiring process were more
likely to be satisfied with the process and to feel that they were a good fit for the company.
This suggests that L&T Finance could consider involving employees in the hiring process
more often.

The data analysis presented in this report provides valuable insights into the human resource
hiring talent acquisition process at L&T Finance. The findings of the analysis can be used to
develop recommendations for how to improve the hiring process and to attract and retain top
talent.

Recommendations for Improvement

Based on the findings of the data analysis, the following recommendations are made for
improving the human resource hiring talent acquisition process at L&T Finance:

 Streamline the hiring process by implementing a more automated system. This could
help to reduce the time it takes to fill open positions and improve communication
between candidates and hiring managers.
 Attract top talent by offering competitive salaries and benefits packages, promoting its
work-life balance culture and opportunities for career growth, and investing in
internal referral programs.
 Address the challenge of the lack of skilled workers in the market by investing in
training and development programs and partnering with local universities and colleges
to recruit students and recent graduates.
 Involve employees in the hiring process more often. This could help to improve the
quality of the hiring process and ensure that employees feel like they are a good fit for
the company.

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Implementation Plan

The following implementation plan is proposed for implementing the recommendations made
in this report:

 To streamline the hiring process, L&T Finance could implement a new applicant
tracking system (ATS). An ATS would help to automate the hiring process and make
it more efficient.
 To attract top talent, L&T Finance could conduct a salary and benefits benchmark
study to ensure that its compensation packages are competitive. The company could
also develop a marketing campaign to promote its work-life balance culture and
opportunities for career growth. To invest in internal referral programs, L&T Finance
could create a financial incentive for employees

Data Analytics
With the help of questionnaire I have collected some responses of employees as well as
candidate for my summer internship report:

Question- 1:

How satisfied are you with the recruitment and hiring process in our organization?

Data Analysis Report: Employee Satisfaction with Recruitment and Hiring Process

Introduction

The purpose of this report is to analyze the level of satisfaction among employees with the
recruitment and hiring process in our organization. We collected a total of 102 responses
from employees who participated in the survey. The survey question asked respondents to

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rate their satisfaction on a scale ranging from very dissatisfied to very satisfy. Here are the
key findings:

 31.4% of respondents are satisfied.

 10.8% of respondents are neutral.
 5.9% of respondents are dissatisfied.
 2.9% of respondents are very dissatisfied.
 49% of respondents are very satisfied.

Satisfaction Levels

To gain a deeper understanding of the data, let's examine each satisfaction level in detail.

Satisfied (31.4%)

This category represents employees who are generally content with the recruitment and hiring
process in our organization. While it's a positive sign that nearly one-third of the respondents
fall into this category, it would be beneficial to identify specific aspects that contribute to
their satisfaction and consider how these can be maintained or improved upon.

Neutral (10.8%)

Employees in this category have neither positive nor negative sentiments about the
recruitment and hiring process. It's crucial to investigate the reasons behind this neutrality, as
it could indicate areas where the process can be refined or clarified to provide a more
transparent and engaging experience for candidates.

Dissatisfied (5.9%)

A small percentage of respondents expressed dissatisfaction with the recruitment and hiring
process. It's essential to gather feedback from this group to pinpoint the specific pain points
they encountered. Addressing these concerns could lead to an improved recruitment process
and, in turn, a more positive employee experience.

Very Dissatisfied (2.9%)

The fact that some employees are very dissatisfied with the recruitment and hiring process is
a cause for concern. While this percentage is relatively small, it represents a subset of
employees who may have had particularly negative experiences. It's crucial to conduct in-
depth interviews or surveys with these individuals to identify and rectify any systemic issues.

Very Satisfied (49%)

The majority of respondents are very satisfied with the recruitment and hiring process, which
is a promising sign. However, it's essential to continuously assess and enhance the process to
maintain this high level of satisfaction. Identifying and replicating the factors contributing to
their satisfaction can help improve overall candidate experiences.

In summary, the data suggests that a significant portion of employees in our organization are
satisfied with the recruitment and hiring process. However, there is room for improvement,

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particularly among those who are neutral or dissatisfied. To enhance overall satisfaction, it is
recommended that we:

Gather Detailed Feedback: Conduct in-depth interviews or surveys with employees who are
neutral, dissatisfied, or very dissatisfied to uncover specific pain points and areas for
improvement.

Continuous Evaluation: Regularly assess and refine the recruitment and hiring process based
on feedback and best practices to maintain high levels of satisfaction among employees.

Highlight Positive Aspects: Identify and replicate the factors that contribute to the high level
of satisfaction among the very satisfied respondents to create a consistent positive experience
for all candidates.

By taking these steps, we can work towards a recruitment and hiring process that not only
meets but exceeds the expectations of our employees, leading to a more engaged and satisfied
workforce.

Question- 2:

Do you feel the on boarding process adequately prepares new employees for their roles?

Data Analysis Report: Onboarding Process Satisfaction

Introduction

This report analyzes the feedback collected from 102 respondents regarding their perception
of the onboarding process and its effectiveness in adequately preparing new employees for
their roles. The survey question offered three options: "Yes," "Maybe," and "No." The key
findings are as follows:

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  76.5% of respondents answered "Yes."
 15.7% of respondents answered "Maybe."
 7.8% of respondents answered "No."

Analysis of Responses

Let's delve into the implications of each response category:

Yes (76.5%)

The majority of respondents expressed satisfaction with the onboarding process, indicating
that they believe it adequately prepares new employees for their roles. This is a positive sign,
as it suggests that a significant portion of employees feel well-equipped to perform their job
responsibilities from the beginning.

Maybe (15.7%)

A moderate percentage of respondents indicated uncertainty regarding the effectiveness of

the onboarding process. The "Maybe" response could be due to a variety of reasons, such as a
lack of clarity, inconsistent experiences, or areas where the process could be improved. It is
essential to explore this group's feedback to identify areas of improvement and address any
potential concerns.

No (7.8%)

A smaller proportion of respondents, but still a notable percentage, expressed dissatisfaction

with the onboarding process, indicating that it does not adequately prepare new employees
for their roles. This response is a clear signal that there are issues with the current onboarding
process that require immediate attention. It is crucial to engage with this group to understand
their specific concerns and work towards meaningful improvements.

In conclusion, the data reveals that a significant majority of employees are satisfied with the
onboarding process, while a smaller but substantial proportion either feels uncertain or
dissatisfied. To enhance the onboarding process and improve overall employee readiness, the
following actions are recommended:

 Engage with "Maybe" Respondents: Reach out to employees who responded with
"Maybe" to understand their reservations or areas of uncertainty. Collect specific
feedback on what aspects of the onboarding process could be improved to boost their
confidence and satisfaction.
 Address the Concerns of "No" Respondents: Prioritize the feedback provided by
respondents who answered "No" to ensure that their concerns are addressed promptly.
Conduct thorough assessments of the onboarding process to identify and rectify any
deficiencies or pain points.
 Continuous Improvement: Regardless of the response category, commit to an
ongoing process of refinement and enhancement of the onboarding process. Regularly
gather feedback from new hires and incorporate their suggestions and needs into the
onboarding program.

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By actively engaging with employees and continuously improving the onboarding process,
organizations can ensure that new hires are well-prepared for their roles, leading to higher job
satisfaction, productivity, and retention rates.

Question- 3:

Do you believe our organization promotes diversity and inclusion effectively?

Data Analysis Report: Diversity and Inclusion in Talent Acquisition

Introduction

This report presents an analysis of the responses collected from 102 participants who
answered the question, "Do you believe our organization promotes diversity and inclusion
effectively in talent acquisition?" The survey offered three response options: "Yes," "Maybe,"
and "No." The following key findings emerged:

 77.5% of respondents answered "Yes."

 13.7% of respondents answered "Maybe."
 8.8% of respondents answered "No."

Analysis of Responses

Let's delve into the significance of each response category:

Yes (77.5%)

The majority of respondents expressed confidence that our organization effectively promotes
diversity and inclusion in talent acquisition. This is a positive indication of the organization's
commitment to diversity and inclusion, and it suggests that a significant portion of employees
perceives these efforts as successful.

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Maybe (13.7%)

A modest percentage of respondents indicated uncertainty about whether the organization

effectively promotes diversity and inclusion in talent acquisition. The "Maybe" response
category may reflect a range of perspectives, from a lack of clear communication about
diversity initiatives to an awareness of areas where improvements could be made. It is
essential to engage with this group to gain insights into their specific views and concerns.

No (8.8%)

While a smaller proportion of respondents, this group expressed skepticism that the
organization effectively promotes diversity and inclusion in talent acquisition. This response
signals that there may be perceived shortcomings or challenges in the organization's efforts in
this regard. It is imperative to engage with these respondents to understand their specific
concerns and identify areas for improvement.

In conclusion, the data indicates that a substantial majority of employees believe our
organization is effective in promoting diversity and inclusion in talent acquisition. However,
there are still employees who harbor uncertainty or have reservations about the effectiveness
of these efforts.

To further advance diversity and inclusion initiatives in talent acquisition, the following
actions are recommended:

 Engage with "Maybe" Respondents: Reach out to employees who responded with
"Maybe" to gain a deeper understanding of their perspectives. Collect specific
feedback on what aspects of diversity and inclusion efforts could be clarified or
improved to enhance their confidence in the organization's initiatives.

 Address the Concerns of "No" Respondents: Prioritize engagement with

employees who answered "No" to better comprehend their reservations or concerns
regarding the organization's diversity and inclusion efforts. Use this feedback to make
targeted improvements and address any perceived shortcomings.

 Continued Focus on Diversity and Inclusion: Regardless of the response category,

continue the organization's commitment to diversity and inclusion in talent
acquisition. Regularly assess and enhance diversity programs, engage in open
dialogue with employees, and communicate transparently about diversity goals and
achievements.

By actively addressing the concerns and feedback of employees and maintaining a steadfast
commitment to diversity and inclusion, the organization can strengthen its reputation as an
inclusive and equitable workplace, which ultimately benefits both employees and the
organization as a whole.

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 Question-4:

Do you feel the organization supports your professional growth and development?

Data Analysis Report: Support for Professional Growth in Talent Acquisition and Human
Resources

Introduction

This report presents an analysis of the responses gathered from 102 participants who
answered the question, "Do you feel the organization supports your professional growth and
development in talent acquisition and human resources?" The survey provided respondents
with five options: "Strongly Agree," "Agree," "Neutral," "Disagree," and "Strongly
Disagree." The following key findings were observed:

 50% of respondents selected "Strongly Agree."

 26.5% of respondents selected "Agree."
 11.8% of respondents selected "Neutral."
 7.8% of respondents selected "Disagree."
 3.9% of respondents selected "Strongly Disagree."

Analysis of Responses

Let's delve into the implications of each response category:

Strongly Agree (50%)

A significant majority of respondents strongly agree that the organization supports their
professional growth and development in the fields of talent acquisition and human resources.
This is a highly positive outcome, indicating that a substantial portion of employees feels
confident in the organization's commitment to their career development.

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Agree (26.5%)

A notable percentage of respondents agree that the organization supports their professional
growth and development. While not as emphatic as the "Strongly Agree" group, this response
category still signifies a positive perception of the organization's efforts in nurturing talent
acquisition and human resources professionals.

Neutral (11.8%)

A minority of respondents selected the "Neutral" option, suggesting that they are neither
strongly inclined towards agreement nor disagreement. It's essential to explore the
perspectives of this group further to understand whether there are specific areas where
improvements could be made in supporting professional growth and development.

Disagree (7.8%)

A small but significant proportion of respondents disagree with the notion that the
organization supports their professional growth and development. This is a concerning
response, indicating that there may be perceived shortcomings or challenges in the
organization's efforts to foster career growth in these fields.

Strongly Disagree (3.9%)

A smaller subset of respondents strongly disagree with the organization's support for their
professional growth and development. This response category demands immediate attention,
as it suggests that a portion of employees feels unsupported or hindered in their career
development.

In summary, the data shows that a majority of employees believe the organization supports
their professional growth and development in talent acquisition and human resources, with a
significant proportion strongly agreeing. However, there are employees who are either
neutral, disagree, or strongly disagree with this sentiment.

To ensure a supportive environment for professional growth and development, the following
actions are recommended:

 Engage with Neutral Respondents: Reach out to employees who selected "Neutral"
to gain insights into their perspectives. Understand whether there are specific areas or
resources they feel are lacking in terms of professional development support.

 Address the Concerns of Disagree and Strongly Disagree Respondents: Prioritize

engagement with employees who chose "Disagree" or "Strongly Disagree" to uncover
the reasons for their dissatisfaction. Use their feedback to make targeted
improvements and provide necessary resources and opportunities.
 Strengthen Existing Initiatives: Continue to invest in and enhance professional
growth and development programs, resources, and opportunities for talent acquisition
and human resources professionals. Regularly solicit feedback and engage in open
dialogue with employees to ensure their needs are met.

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By proactively addressing employee concerns and maintaining a strong commitment to
professional growth and development, the organization can foster a culture of continuous
learning and improvement in the talent acquisition and human resources fields, benefiting
both employees and the organization as a whole.

Question- 5:

How would you rate the effectiveness of our talent sourcing methods?

Data Analysis Report: Effectiveness of Talent Sourcing Methods at L&T Finance

Introduction

This report analyzes the responses collected from 102 participants who were asked to rate the
effectiveness of L&T Finance's talent sourcing methods. The survey offered five response
options: "Very Effective," "Effective," "Neutral," "Ineffective," and "Very Ineffective." The
key findings are as follows:

 53.9% of respondents rated the methods as "Very Effective."

 26.5% of respondents rated the methods as "Effective."
 9.8% of respondents had a "Neutral" stance.
 5.9% of respondents found the methods "Ineffective."
 3.9% of respondents deemed the methods "Very Ineffective."

Analysis of Responses

Let's examine the significance of each response category:

Very Effective (53.9%)

A majority of respondents believe that L&T Finance's talent sourcing methods are highly
effective. This is a positive outcome, indicating that a significant portion of respondents has a

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favorable perception of the organization's approach to sourcing talent. It suggests that the
methods in place are successful in identifying and attracting qualified candidates.

Effective (26.5%)

A substantial percentage of respondents rated the methods as "Effective." While not as

emphatic as the "Very Effective" group, this response category still signifies confidence in
the organization's talent sourcing efforts. It suggests that the majority of respondents consider
the methods to be successful in fulfilling their purpose.

Neutral (9.8%)

A smaller but notable portion of respondents had a "Neutral" stance, indicating a lack of
strong opinion regarding the effectiveness of talent sourcing methods. This group could
potentially provide valuable insights into areas where clarity or improvements are needed in
the talent sourcing process.

Ineffective (5.9%)

A minority of respondents found the methods to be "Ineffective." This response highlights a

concern within a small segment of the workforce, suggesting that there may be areas in which
talent sourcing methods could be refined or made more efficient.

Very Ineffective (3.9%)

The smallest subset of respondents rated the methods as "Very Ineffective." Although their
number is limited, their feedback is essential, as it signals that some employees have
significant reservations about the organization's talent sourcing methods. Immediate attention
may be required to address their concerns and identify potential shortcomings.

In conclusion, the data demonstrates that the majority of respondents perceive L&T Finance's
talent sourcing methods as effective, with over half of them considering these methods to be
very effective. However, there are employees who have a neutral stance or perceive the
methods as ineffective or very ineffective.

To enhance talent sourcing effectiveness, the following actions are recommended:

 Engage with Neutral Respondents: Reach out to employees who had a "Neutral"
stance to gather more information on their perceptions and understand areas where the
talent sourcing process may need clarification or improvements.
 Address the Concerns of Ineffective and Very Ineffective Respondents: Prioritize
engaging with employees who rated the methods as "Ineffective" or "Very
Ineffective" to pinpoint the reasons behind their dissatisfaction and take corrective
actions accordingly.
 Continuous Improvement: Irrespective of the response category, commit to ongoing
assessments and enhancements of talent sourcing methods. Regularly seek feedback
from employees and integrate their suggestions and needs into the sourcing process.

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By actively listening to employee feedback and continuously refining talent sourcing
methods, L&T Finance can ensure a more effective and efficient recruitment process, which
ultimately benefits the organization's growth and success.

Question- 6:

Do you believe our interview process effectively assesses candidates' skills and
qualifications?

Data Analysis Report: Effectiveness of Interview Process for Assessing Skills and
Qualifications at L&T Finance

Introduction

This report presents an analysis of the responses collected from 102 participants who were
asked to evaluate the effectiveness of L&T Finance's interview process in assessing
candidates' skills and qualifications. The survey provided respondents with five response
options: "Strongly Agree," "Agree," "Neutral," "Disagree," and "Strongly Disagree." The key
findings are as follows:

 53.9% of respondents strongly agree that the interview process effectively

assesses skills and qualifications.
 31.4% of respondents agree that the interview process effectively assesses skills
and qualifications.
 4.9% of respondents had a neutral stance.
 7.8% of respondents disagree with the effectiveness of the interview process.
 2% of respondents strongly disagree with the effectiveness of the interview
process.

Analysis of Responses

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Let's explore the implications of each response category:

Strongly Agree (53.9%)

The majority of respondents strongly agree that L&T Finance's interview process effectively
assesses candidates' skills and qualifications. This is a highly positive outcome, indicating
that a substantial portion of respondents has a strong belief in the interview process's ability
to identify suitable candidates.

Agree (31.4%)

A significant percentage of respondents agree that the interview process effectively assesses
skills and qualifications, although not as emphatically as the "Strongly Agree" group. This
response category also signifies confidence in the organization's interview process,
suggesting that the majority of respondents find it to be a reliable tool for candidate
assessment.

Neutral (4.9%)

A small but notable portion of respondents had a "Neutral" stance, indicating a lack of strong
opinion regarding the effectiveness of the interview process. This group may offer valuable
insights into areas where the interview process can be improved or clarified to enhance
candidate assessment.

Disagree (7.8%)

A minority of respondents disagree with the effectiveness of the interview process. This
response highlights a concern within a small segment of the workforce, suggesting that there
may be areas in which the interview process could be refined or strengthened.

Strongly Disagree (2%)

The smallest subset of respondents strongly disagrees with the effectiveness of the interview
process. While their number is limited, their feedback is crucial, as it signals that some
employees have significant reservations about the organization's ability to assess candidates
effectively.

In summary, the data shows that the majority of respondents, over 85% combined from the
"Strongly Agree" and "Agree" categories, have confidence in L&T Finance's interview
process to effectively assess candidates' skills and qualifications. However, there are
employees who have a neutral stance or perceive the interview process as less effective.

To further improve the interview process's effectiveness, the following actions are
recommended:

 Engage with Neutral Respondents: Reach out to employees who had a "Neutral"
stance to gather more information on their perceptions and understand areas where the
interview process may need clarification or improvements.
 Address the Concerns of Disagree and Strongly Disagree Respondents: Prioritize
engagement with employees who disagreed with or strongly disagreed with the

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 effectiveness of the interview process. Pinpoint the reasons behind their
dissatisfaction and take corrective actions accordingly.
 Continuous Improvement: Regardless of the response category, commit to ongoing
assessments and enhancements of the interview process. Regularly seek feedback
from employees and integrate their suggestions and needs into the interview
assessment criteria and methods.

By actively listening to employee feedback and continuously refining the interview process,
L&T Finance can ensure a more effective and reliable candidate assessment, contributing to
better hiring decisions and ultimately benefiting the organization's success.

Question- 7:

How do you perceive the organization's decision-making process when selecting

candidates for hire?

Data Analysis Report: Perception of Decision-Making in Candidate Selection at L&T

Finance

Introduction

This report analyzes the responses collected from 102 participants who were asked to express
their perception of L&T Finance's decision-making process when selecting candidates for
hire. The survey offered five response options: "Fair and Transparent," "Somewhat Fair,"
"Neutral," "Somewhat Unfair," and "Unfair and Biased." The key findings are as follows:

 66.7% of respondents perceive the decision-making process as "Fair and

Transparent."
 16.7% of respondents perceive the process as "Somewhat Fair."

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  9.8% of respondents had a "Neutral" perception.
 4.9% of respondents perceive the process as "Somewhat Unfair."
 2% of respondents perceive the process as "Unfair and Biased."

Analysis of Responses

Let's explore the implications of each response category:

Fair and Transparent (66.7%)

The majority of respondents perceive L&T Finance's decision-making process for selecting
candidates as fair and transparent. This is a highly positive outcome, indicating that a
significant portion of respondents believes the organization conducts hiring in an equitable
and clear manner.

Somewhat Fair (16.7%)

A notable percentage of respondents find the decision-making process to be "Somewhat

Fair." While this group doesn't express strong agreement with fairness, their perception still
leans toward a positive view, suggesting that there may be room for improvement in certain
aspects of the hiring process.

Neutral (9.8%)

A minority of respondents had a "Neutral" perception, indicating a lack of strong opinion

regarding the fairness and transparency of the decision-making process. It is crucial to engage
with this group to understand whether there are areas where transparency and fairness could
be enhanced.

Somewhat Unfair (4.9%)

A smaller proportion of respondents perceive the decision-making process as "Somewhat

Unfair." This response category raises concerns about specific aspects of the hiring process
that may need attention or refinement.

Unfair and Biased (2%)

The smallest subset of respondents perceives the decision-making process as "Unfair and
Biased." Their feedback is essential, as it suggests that there may be significant reservations
or concerns about fairness and equity in candidate selection. Immediate attention may be
required to address these perceptions and address any potential biases.

In summary, the data indicates that the majority of respondents perceive L&T Finance's
decision-making process when selecting candidates for hire as fair and transparent. However,
there are employees who have a less favorable perception, with a smaller percentage finding
the process somewhat fair or even unfair and biased.

To ensure a fair and transparent candidate selection process, the following actions are
recommended:

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  Engage with Neutral Respondents: Reach out to employees who had a "Neutral"
perception to gather more information on their views and understand any areas where
transparency and fairness could be improved.
 Address the Concerns of Somewhat Unfair and Unfair and Biased Respondents:
Prioritize engagement with employees who perceive the process as "Somewhat
Unfair" or "Unfair and Biased." Pinpoint the specific concerns or areas of perceived
bias and take corrective actions accordingly.
 Continuous Improvement: Commit to ongoing assessments and enhancements of
the candidate selection process. Regularly seek feedback from employees and conduct
training to ensure fairness, equity, and transparency in hiring practices.

By actively addressing employee concerns and continuously refining the candidate selection
process, L&T Finance can foster an inclusive and equitable work environment, which
ultimately benefits both employees and the organization as a whole.

Question- 8:

Have you ever shadowed or observed the recruitment process within our microfinance
organization?

Data Analysis Report: Observation of the Recruitment Process at L&T Finance

Microfinance

Introduction

This report analyzes the responses collected from 102 participants who were asked whether
they have ever shadowed or observed the recruitment process within L&T Finance's
microfinance organization. The survey yielded two response options: "Yes" and "No." The
key findings are as follows:

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  75.5% of respondents answered "Yes."
 24.5% of respondents answered "No."

Analysis of Responses

Let's delve into the implications of the responses:

Yes (75.5%)

A significant majority of respondents (nearly three-quarters) have had the opportunity to

shadow or observe the recruitment process within L&T Finance's microfinance organization.
This high percentage suggests that the organization values transparency and inclusivity by
allowing employees to gain insights into its recruitment practices.

No (24.5%)

While a smaller proportion of respondents, a notable percentage, have not had the chance to
shadow or observe the recruitment process. This may indicate a potential opportunity for the
organization to expand these opportunities and increase transparency in the recruitment
process.

The Importance of Microfinance

Microfinance is a financial service that provides small loans, savings accounts, and other
basic financial services to low-income individuals or underserved communities who typically
lack access to traditional banking services. The primary goal of microfinance is to alleviate
poverty and promote economic development by empowering people with limited financial
resources to start or expand small businesses and improve their overall financial well-being.

Key Characteristics of Microfinance:

Small Loans: Microfinance institutions (MFIs) offer small loans to borrowers who often do
not have collateral or credit history. These loans can be used to fund various income-
generating activities, such as agriculture, retail, or handicrafts.

 Savings and Insurance: In addition to loans, MFIs provide savings and insurance
products tailored to the needs of their clients. These services help individuals build
financial resilience and plan for the future.
 Financial Inclusion: Microfinance plays a crucial role in promoting financial
inclusion by reaching out to marginalized and unbanked populations. It empowers
individuals to access formal financial services and break the cycle of poverty.
 Client-Centered Approach: Successful microfinance institutions adopt a client-
centered approach, understanding the unique needs and challenges of their clients.
This involves providing financial education and customized solutions.
 Social Impact: Microfinance goes beyond financial transactions; it has a social
impact by improving living standards, reducing income inequality, and empowering
women, who often make up a significant portion of microfinance clients.

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Microfinance and L&T Finance

L&T Finance's involvement in microfinance indicates its commitment to financial inclusion

and social responsibility. By offering microfinance services, the organization is contributing
to poverty reduction and economic development in underserved communities.

Benefits of Microfinance for L&T Finance:

 Diversification: Microfinance can serve as a diversification strategy for L&T

Finance, expanding its portfolio of financial services and reaching new markets.
 Social Responsibility: By engaging in microfinance, L&T Finance demonstrates
corporate social responsibility and contributes to the welfare of disadvantaged
populations.
 Market Growth: Microfinance can open up opportunities for market growth, as it
addresses the needs of an underserved segment that holds significant potential for
financial services.
 Enhanced Reputation: Active participation in microfinance enhances L&T Finance's
reputation as a socially responsible organization, which can be appealing to customers
and investors.

In conclusion, the data reveals that a significant portion of respondents have had the
opportunity to shadow or observe the recruitment process within L&T Finance's microfinance
organization, indicating transparency and inclusivity in the hiring process. However, there is
still a segment of employees who have not had this opportunity, suggesting a potential area
for improvement in terms of providing more visibility into the recruitment process.

Microfinance is a vital component of financial inclusion and poverty alleviation, and L&T
Finance's involvement in this sector reflects its commitment to making a positive social
impact. By continuing to offer microfinance services and expanding opportunities for
employees to understand and engage with the microfinance operation, L&T Finance can
further its mission of financial inclusion and social responsibility while fostering a more
informed and engaged workforce.

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 Question- 9:

How do you perceive our organization's communication and engagement with job
candidates throughout the recruitment process?

Data Analysis Report: Perception of Communication and Engagement with Job

Candidates in L&T Finance Talent Acquisition

Introduction

This report analyzes the responses collected from 102 participants who were asked to express
their perception of L&T Finance's communication and engagement with job candidates
throughout the recruitment process. The survey provided respondents with five response
options: "Excellent," "Good," "Satisfactory," "Fair," and "Poor." The key findings are as
follows:

 56.9% of respondents perceive the organization's communication and

engagement as "Excellent."
 21.6% of respondents perceive it as "Good."
 13.7% of respondents perceive it as "Satisfactory."
 4.9% of respondents perceive it as "Fair."
 2.9% of respondents perceive it as "Poor."

Analysis of Responses

Let's delve into the implications of each response category:

Excellent (56.9%)

The majority of respondents perceive L&T Finance's communication and engagement with
job candidates throughout the recruitment process as excellent. This is an exceptionally
positive outcome, indicating that a significant portion of respondents has a highly favorable
view of the organization's communication practices and candidate engagement efforts.

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Good (21.6%)

A substantial percentage of respondents perceive the communication and engagement as

good. While not as emphatic as the "Excellent" group, this response category still signifies a
positive perception, suggesting that the majority of respondents find the organization's
communication and engagement efforts to be effective and satisfactory.

Satisfactory (13.7%)

A smaller but still notable portion of respondents perceives the communication and
engagement as satisfactory. This group likely believes that while the organization's efforts are
generally acceptable, there may be room for improvement in certain areas or aspects of
communication.

Fair (4.9%)

A minority of respondents perceive the organization's communication and engagement as

fair. This response category indicates that there are areas within the recruitment process
where candidates may feel less engaged or informed, and improvements may be needed to
enhance the overall candidate experience.

Poor (2.9%)

The smallest subset of respondents perceives the communication and engagement as poor.
While their number is limited, their feedback is critical, as it signals that some employees
believe there are significant shortcomings in how the organization communicates and
engages with candidates during the recruitment process. Immediate attention may be required
to address these perceptions and enhance the overall candidate experience.

In summary, the data indicates that the majority of respondents have a highly positive
perception of L&T Finance's communication and engagement with job candidates throughout
the recruitment process, with a significant percentage rating it as excellent or good. However,
there are employees who have a less favorable perception, with a smaller percentage rating it
as satisfactory, fair, or even poor.

To ensure a positive candidate experience and maintain a positive perception of

communication and engagement, the following actions are recommended:

 Engage with Satisfactory, Fair, and Poor Respondents: Prioritize engagement with
employees who perceive the communication and engagement as satisfactory, fair, or
poor. Understand their specific concerns and gather feedback on areas where
improvements can be made.
 Continuous Improvement: Regardless of the response category, commit to ongoing
assessments and enhancements of communication and engagement practices
throughout the recruitment process. Regularly seek feedback from candidates and
employees involved in the process to identify opportunities for improvement.
 Best Practices Sharing: Identify and share best practices within the organization to
ensure consistent and effective communication and engagement with job candidates.
Training and development programs can help improve these practices among staff
involved in recruitment.

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By actively addressing concerns and continuously improving communication and
engagement with job candidates, L&T Finance can maintain a strong candidate experience,
attract top talent, and strengthen its employer brand.

Question- 10:

If you have recently been hired, please rate your on boarding experience.

Data Analysis Report: Onboarding Experience Rating for Recently Hired Employees at
L&T Finance

Introduction

This report analyzes the responses collected from 102 recently hired employees who were
asked to rate their onboarding experience at L&T Finance. The survey provided respondents
with six response options: "Very Satisfactory," "Satisfactory," "Neutral," "Unsatisfactory,"
"Very Unsatisfactory," and "Not Applicable." The key findings are as follows:

 52% of respondents rated their onboarding experience as "Very Satisfactory."

 21.6% of respondents rated their onboarding experience as "Satisfactory."
 17.6% of respondents had a "Neutral" rating for their onboarding experience.
 3.9% of respondents found their onboarding experience "Unsatisfactory."
 2.9% of respondents deemed their onboarding experience "Very
Unsatisfactory."
 2% of respondents indicated that the question was "Not Applicable."

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Analysis of Responses

Let's delve into the implications of each response category:

Very Satisfactory (52%)

A majority of recently hired employees (more than half) rated their onboarding experience as
"Very Satisfactory." This is an extremely positive outcome, indicating that a significant
portion of respondents had a highly favorable onboarding experience, feeling well-prepared
and welcomed by the organization.

Satisfactory (21.6%)

A substantial percentage of respondents rated their onboarding experience as "Satisfactory."

While not as emphatic as the "Very Satisfactory" group, this response category still signifies
a positive perception, suggesting that the majority of respondents found their onboarding
experience to be effective and satisfactory.

Neutral (17.6%)

A notable portion of respondents had a "Neutral" rating for their onboarding experience. This
group likely neither strongly praised nor criticized their onboarding process, indicating that
there may be room for improvement in certain aspects of the onboarding program.

Unsatisfactory (3.9%)

A minority of respondents found their onboarding experience "Unsatisfactory." This response

highlights a concern within a small segment of recently hired employees, suggesting that
there may be areas in which the onboarding process could be refined or enhanced.

Very Unsatisfactory (2.9%)

The smallest subset of respondents deemed their onboarding experience as "Very

Unsatisfactory." Although their number is limited, their feedback is critical, as it signals that
some recently hired employees have significant reservations about their onboarding
experience. Immediate attention may be required to address their concerns.

Not Applicable (2%)

A small portion of respondents indicated that the question was "Not Applicable," suggesting
that they may not have had a formal onboarding experience or were unable to provide a rating
for other reasons.

In summary, the data reveals a predominantly positive onboarding experience for recently
hired employees at L&T Finance, with a majority rating it as "Very Satisfactory" or
"Satisfactory." However, there are employees who had a "Neutral," "Unsatisfactory," or even
"Very Unsatisfactory" experience, indicating that there is room for improvement in certain
aspects of the onboarding process.

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To ensure consistently positive onboarding experiences and maximize the effectiveness of the
onboarding program, the following actions are recommended:

 Engage with Neutral, Unsatisfactory, and Very Unsatisfactory Respondents:

Prioritize engagement with employees who rated their onboarding experience as
neutral or unsatisfactory. Understand their specific concerns and gather feedback on
areas where improvements can be made.
 Continuous Improvement: Regardless of the response category, commit to ongoing
assessments and enhancements of the onboarding process. Regularly seek feedback
from recently hired employees and incorporate their suggestions and needs into the
onboarding program.
 Benchmark and Best Practices: Compare the organization's onboarding practices to
industry benchmarks and best practices. Consider implementing innovative
approaches to onboarding to ensure that new hires are well-prepared and feel engaged
from day one.

By actively addressing concerns and continuously refining the onboarding process, L&T
Finance can enhance employee satisfaction, retention, and overall organizational success.

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 CHAPTER- 8

RECOMMENDATIONS

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Structured set of Recommendations are as follows:

1. Strengthening Talent Acquisition Strategies:

 Develop a targeted recruitment strategy that specifically caters to the microfinance

sector. This should involve collaborating with industry-specific job boards,
associations, and universities to source potential candidates with the right skill set and
mindset for microfinance roles.

 Implement a more robust employee referral program to tap into the existing talent
network within the organization. Encourage employees to refer potential candidates
for microfinance positions, and provide incentives for successful referrals.

 Invest in technology and tools for talent acquisition, such as applicant tracking
systems (ATS) and artificial intelligence-driven recruitment software, to streamline
the hiring process and identify suitable candidates more efficiently.

2. Enhancing HR Practices for Microfinance:

 Establish clear and comprehensive job profiles and role descriptions for microfinance
positions. Ensure that these documents highlight the unique challenges and
requirements of working in the microfinance sector.

 Develop specialized training and onboarding programs for employees joining the
microfinance division. This should include training on microfinance principles,
customer engagement in this sector, and relevant regulatory compliance.

 Foster a culture of continuous learning and development by providing opportunities

for employees in the microfinance sector to upskill and stay updated with industry
trends.

3. Diversifying Talent Sources:

 Explore partnerships with microfinance-focused educational institutions and NGOs

that specialize in financial inclusion. These partnerships can serve as talent pipelines
for the organization.

 Consider tapping into underrepresented talent pools, such as individuals from rural
backgrounds or those with prior experience in community development, as they may
bring unique perspectives and insights to the microfinance sector.

4. Employee Retention Strategies:

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  Conduct regular employee engagement surveys and use the feedback to make
improvements in the workplace environment, job satisfaction, and overall employee
experience in the microfinance division.

 Offer competitive compensation packages that take into account the specific
challenges and responsibilities associated with microfinance roles.

 Implement career progression plans and opportunities for employees in the

microfinance sector, including clear paths for advancement and leadership roles.

5. Monitoring and Evaluation:

 Set up key performance indicators (KPIs) specific to the microfinance sector to

measure the effectiveness of talent acquisition and HR practices. Monitor these KPIs
regularly and make data-driven adjustments as needed.

 Conduct periodic reviews and audits of HR practices and talent acquisition processes
within the microfinance division to ensure they remain aligned with industry best
practices.

6. Compliance and Ethics:

 Strengthen ethics and compliance training for employees in the microfinance sector,
emphasizing the importance of responsible lending practices and maintaining the
highest ethical standards in microfinance operations.

 Regularly review and update policies and procedures to align with evolving
regulatory requirements in the microfinance industry.

These recommendations should provide a comprehensive framework for improving talent

acquisition and HR practices within the microfinance sector of L&T finance.

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CHAPTER- 9
CONCLUSION

101
Conclusion
In the pursuit of understanding and improving HR practices and talent acquisition within
L&T Finance's microfinance sector, this research report has delved into the intricate nuances
of hiring candidates for microfinance roles in regions spanning Haryana, Punjab, and
Rajasthan. Through the collection of 102 comprehensive questionnaires, we have gained
valuable insights into the current state of affairs and have laid the foundation for
recommendations that can significantly impact the organization's approach to talent
acquisition in the microfinance sector.

Key Findings

The data gathered from the questionnaires and the extensive fieldwork conducted across these
diverse regions have unveiled several key findings:

 Regional Variations in Talent Acquisition: Our research has highlighted the

significance of regional variations in the microfinance sector's talent pool. Different
regions exhibit unique challenges and opportunities, necessitating a tailored approach
to recruitment in each location.

 The Importance of Specialized Training: Microfinance, as a sector, demands a

specialized skill set and a deep understanding of the local community. Respondents
emphasized the necessity of targeted training programs to equip candidates for the
unique challenges of microfinance roles.

 Employee Engagement and Retention: Maintaining a motivated and engaged

workforce is essential for success in the microfinance sector. Respondents stressed the
need for continuous feedback and development opportunities to boost employee
satisfaction and reduce turnover.

 Diversity and Inclusion: Diversifying talent sources and promoting inclusivity

emerged as crucial factors in strengthening talent acquisition efforts. Leveraging
partnerships with educational institutions and reaching out to underrepresented talent
pools were seen as opportunities for growth.

 Compliance and Ethics: Ensuring adherence to ethical lending practices and

compliance with evolving regulations is paramount in the microfinance sector.
Respondents underscored the importance of comprehensive training and policy
updates in this regard.

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Recommendations for the Future

Building upon these findings, we offer the following recommendations to enhance talent
acquisition and HR practices in L&T Finance's microfinance sector:

 Develop region-specific talent acquisition strategies to address the unique challenges

and opportunities in Haryana, Punjab, and Rajasthan.
 Establish specialized training programs for microfinance roles, emphasizing local
community engagement and ethical lending practices.
 Prioritize employee engagement and retention by implementing regular feedback
mechanisms and career progression plans.
 Explore partnerships with regional educational institutions and organizations focusing
on underrepresented talent pools.
 Maintain a proactive approach to compliance and ethics, ensuring policies are up-to-
date and training programs are comprehensive.

In conclusion, this research report underscores the critical role that HR practices and talent
acquisition play in the microfinance sector of L&T Finance. By embracing region-specific
strategies, specialized training, and a commitment to diversity, ethics, and compliance, L&T
Finance can position itself as a leader in the microfinance industry. The insights and
recommendations presented here provide a roadmap for future success, ensuring that the
organization continues to thrive while positively impacting the communities it serves.

As L&T Finance moves forward, it is our hope that this research serves as a valuable
resource in its ongoing efforts to attract, develop, and retain top talent in the dynamic and
challenging world of microfinance.

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