HRM in Private & Public Sector Banks.pdf
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GURU NANAK COLLEGE OF ARTS, SCIENCE & COMMERCE G.T.B. NAGAR, SION, MUMBAI - 400037.
A PROJECT REPORT ON “HUMAN RESOURCE MANAGEMENT IN PUBLIC AND PRIVATE SECTOR BANKS” IN PARTIAL FULFILLMENT FOR BACHELOR OF BANKING & INSURANCE
SUBMITED BY PAVITRA DEVI SOKKALINGAM ROLL NO. 04 TYBBI (SEMESTER – V)
SUBMITTED TO UNIVERSITY OF MUMBAI ACADEMIC YEAR 2015 – 2016
UNDER THE GUIDANCE OF MISS. S.SUDHA
1
ACKNOWLEDGEMENT
I would first thanks to Mumbai University for introducing the Bachelor of Banking & Insurance course. There by giving us a platform to conduct this study that has helped us to gain practical knowledge about the course. I would like to extend my thanks to our Principal Dr. Vijay Dabolkar for their constant efforts to conduct this course smoothly. I would also like to extend my heartfelt thanks to course coordinator, my parents, Librarian and friends for their constant support and encouragement
Date: Place: Mumbai
Signature of Student
2
DECLARTION
I am Pavitra Devi Sokkalingam the student of Guru Nanak College of Arts, Science & Commerce studying in T.Y. (Bachelor of Banking & Insurance) Semester-V. Hereby declare that I have completed this Project on “Human Resources Management in Public and Private Sector Banks” in the academic year 2015-16. This information submitted is the true & original to the best of my knowledge.
Date: Place: Mumbai
Signature of Student (PAVITRA DEVI SOKKALINGAM)
3
CERTIFICATE Guru Nanak College of Arts, Science & Commerce
This is to certify that Pavitra Devi Sokkalingam of T.Y. (Bachelor of Banking and Insurance) Semester-V (Year 2015-16) has successfully completed the Project on “Human Resources Management in Public and Private Sector Banks” under the guidance of Miss S. Sudha.
Signature of Project Guidance
Signature of Principal
Signature of coordinator
Signature of External Examiner
4
INDEX
Sr.no
Topic
Page no
1.
Introduction to Bank
07
2.
The Structure of Banking System in India
09
3.
Functions of Banks
13
4.
Introduction to Human Resource Management
21
5.
Human Resource Management
24
6.
Objectives of Human Resource Management & Nature of
26
Human Resource Management 7.
Advantages / benefits / Significance / importance / need of
27
Human Resource Management 8.
Scope of Human Resource Management
29
9.
Human Resource Management Practices in Selected Public
32
and Private Sector Bank 10.
Human Resource Management in Banks
34
11.
Responsibilities of Human Resource Management in Banks
35
12.
Current Challenges Faced by Banks in Human Resources
36
Management 13.
Challenges Faced by Banking Industry
39
14.
Suggestion
45
15.
Human Resource Management in Public and Private Sector
47
Banks 5
16.
Human Resource Management Practices
48
17.
Suggestion
51
18.
Human Resource Management in SBI Bank
53
19.
Case Study of Human Resource Management in SBI Bank
55
20.
Human Resource Management in ICICI Bank
59
21.
Case Study of Human Resource Management in ICICI Bank
61
22.
Comparative Analysis
69
23.
Suggestions
70
24.
Conclusion
73
25.
Bibliography and Webliography
74
6
Introduction of Bank: Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking system. The term bank is either derived from old Italian word banca or from a French word banque both mean a Bench or money exchange table. In olden days, European money lenders or money changers used to display coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it.
Characteristics / Features of a Bank: Dealing in Money: Bank is a financial institution which deals with other people‟s money i.e. money given by depositors. Individual / Firm / Company: A Bank may be a person, firm or a company. A banking company means a company which is in the business of banking. Acceptance of Deposit: A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as custodians of funds of its customers. Giving advances: A bank lends out money in the form of loans for those who require it for different purposes. 7
Payment and Withdrawal: A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts. It also brings bank money in circulation. This money is in the form of cheques, drafts, etc. Agency and Utility Services: A bank provides various banking facilities to its customers. They include general utility services and agency services. Profit and Service Orientation: A bank is a profit seeking institution having service oriented approach. Ever increasing Functions: Banking is an evolutionary concept. There is a continuous expansion and diversification as regards the functions, services and activities of a bank. Connecting Link: A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money. Banking Business: A bank‟s main activity should be to do business of banking which should not be subsidiary to any other business. Name Identity: A bank should always add the word “bank” to its name to enable people to know that it is a bank and that it is dealing in money. Electronic banking and E-banking: Electronic banking is offering improved services to the customers are as follows:
ATM Cards
Credit Cards
Electronic transfer of money 8
THE STRUCTURE OF BANKING SYSTEM IN INDIA AND OTHER DETAILS ( WITH DIAGRAMS )
The structure of banking system in India is significantly different from other countries. It can be classified as given below:
1. Reserve Bank of India:
Reserve bank of India is the Central Bank of our country. It was established on 1st April 1935 under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs various developmental and promotional functions. It has given wide powers to supervise and control the banking structure. It occupies the pivotal position in the monetary and banking structure of the country. In many countries central bank is known by different names.
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For example, Federal Reserve Bank of U.S.A, Bank of England in U.K, and Reserve Bank of India in India, Central bank is known as a banker‟s bank. They have the authority to formulate and implement monetary and credit policies. It is owned by the government of a country and has the monopoly power of issuing notes.
2. Commercial Banks:
Commercial bank is an institution that accepts deposit, makes business loans and offer related services to various like accepting deposits and lending loans and advances to general customers and business man.
These institutions run to make profit. They cater to the financial requirements of industries and various sectors like agriculture, rural development, etc. it is a profit making institution owned by government or private of both.
Commercial bank includes public sector, private sector, foreign banks and regional rural banks: a. Public sector banks: It includes SBI, seven (7) associate banks and nineteen (19) nationalized banks. Altogether there are 27 public sector banks. The public sector accounts for 90 percent of total banking business in India and State Bank of India is the largest commercial bank in terms of volume of all commercial banks. b. Private sector banks: Private sector banks are those whose equity is held by private shareholders. For example, ICICI, HDFC etc. Private sector bank plays a major role in the development of Indian banking industry. c. Foreign Banks: Foreign banks are those banks, which have their head offices abroad. CITI bank, HSBC, Standard Chartered etc. are the examples of foreign bank in India.
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d. Regional Rural Bank (RRB): These are state sponsored regional rural oriented banks. They provide credit for agricultural and rural development. The main objective of RRB is to develop rural economy. Their borrowers include small and marginal farmers, agricultural labourers, artisans etc. NABARD holds the apex position in the agricultural and rural development. 3. Co-operative Bank: Co-operative bank was set up by passing a co-operative act in 1904. They are organized and managed on the principal of co-operation and mutual help. The main objective of co-operative bank is to provide rural credit. The cooperative banks in India play an important role even today in rural cooperative financing. The enactment of Co-operative Credit Societies Act, 1904, however, gave the real impetus to the movement. The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable organization of non-credit societies. Three tier structures exist in the cooperative banking: i. State cooperative bank at the apex level. ii. Central cooperative banks at the district level. iii. Primary cooperative banks and the base or local level. 4. Scheduled and Non-Scheduled banks: A bank is said to be a scheduled bank when it has a paid up capital and reserves as per the prescription of RBI and included in the second schedule of RBI Act 1934. Non-scheduled bank are those commercial banks, which are not included in the second schedule of RBI Act 1934. 5. Development banks and other financial institutions: A development bank is a financial institution, which provides a long term funds to the industries for development purpose. This organization includes banks like IDBI, ICICI, IFCI etc. State level institutions like SFC‟s SIDC‟s etc. It also includes investment institutions like UTI, LIC, and GIC etc. 11
Commercial banks: Banks are those institutions which conduct the business purely on profit motive. Banks receive surplus money from the people who are not using it and lend to those who need it for productive purpose. When we speak of a bank, we generally mean a commercial bank. Commercial banks are those institutions which conduct the business purely on profit motive. Commercial banks receive surplus money from the people who are not using it and lend to those who need it for productive purpose. A commercial bank is a dealer in short and medium-term credit. It borrows money from a group of people at a lower rate of interest and lends to the other group of people at some higher rate of interest. The difference between the two rates of interest is the profit of the bank.
1. Definition Of A Commercial Bank: Some important definitions of commercial bank are given below. 1.1. Professor G. Crowther: "A bank is a firm which collects money from those who have it spare. It lends to those who require it." 1.2. Professor Parking: "A bank is a firm that takes deposits from households and firms and makes loans to other household and firms.
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FUNCTIONS OF BANKS - IMPORTANT BANKING FUNCTIONS AND SERVICES What are the Functions of Banks? Diagram ↓: The functions of banks are briefly
highlighted
in
following
Diagram
or
Chart.
These functions of banks are explained in following paragraphs of this article. A. Primary Functions of Banks: The primary functions of a bank are also known as banking functions. They are the main functions of a bank. These primary functions of banks are explained below. 1. Accepting Deposits: The bank collects deposits from the public. These deposits can be of different types, such as:a. Saving Deposits b. Fixed Deposits c. Current Deposits d. Recurring Deposits 13
a. Saving Deposits: This type of deposits encourages saving habit among the public. The rate of interest is low. At present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions. This account is suitable to salary and wage earners. This account can be opened in single name or in joint names.
b. Fixed Deposits: Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid, which varies with the period of deposit. Withdrawals are not allowed before the expiry of the period. Those who have surplus funds go for fixed deposit.
c. Current Deposits: This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is paid. In fact, there are service charges. The account holders can get the benefit of overdraft facility.
d. Recurring Deposits: This type of account is operated by salaried persons and petty traders. A certain sum of money is periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain period. A higher rate of interest is paid.
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2. Granting of Loans and Advances: The bank advances loans to the business community and other members of the public. The rate charged is higher than what it pays on deposits. The difference in the interest rates (lending rate and the deposit rate) is its profit. The types of bank loans and advances are:a. Overdraft b. Cash Credits c. Loans d. Discounting of Bill of Exchange
a. Overdraft: These types of advances are given to current account holders. No separate account is maintained. All entries are made in the current account. A certain amount is sanctioned as overdraft which can be withdrawn within a certain period of time say three months or so. Interest is charged on actual amount withdrawn. An overdraft facility is granted against a collateral security. It is sanctioned to businessman and firms.
b. Cash Credits: The client is allowed cash credit upto a specific limit fixed in advance. It can be given to current account holders as well as to others who do not have an account with bank. Separate cash credit account is maintained. Interest is charged on the amount withdrawn in excess of limit. The cash credit is given against the security of tangible assets and / or guarantees. The advance is given for a longer period and a larger amount of loan is sanctioned than that of overdraft.
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c. Loans: It is normally for short term say a period of one year or medium term say a period of five years. Now-a-days, banks do lend money for long term. Repayment of money can be in the form of installments spread over a period of time or in a lumpsum amount. Interest is charged on the actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower than what is charged on overdrafts and cash credits. Loans are normally secured against tangible assets of the company.
d. Discounting of bill of exchange: The bank can advance money by discounting or by purchasing bills of exchange both domestic and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by deducting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of the bill and the amount is collected.
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B. Secondary Functions of Banks: The bank performs a number of secondary functions, also called as nonbanking functions. These important secondary functions of banks are explained below. 1. Agency Functions: The bank acts as an agent of its customers. The bank performs a number of agency functions which includes:a. Transfer of Funds b. Collection of Cheques c. Periodic Payments d. Portfolio Management e. Periodic Collections f. Other Agency Functions
a. Transfer of Funds: The bank transfer funds from one branch to another or from one place to another.
b. Collection of Cheques: The bank collects the money of the cheques through clearing section of its customers. The bank also collects money of the bills of exchange.
c. Periodic Payments: On standing instructions of the client, the bank makes periodic payments in respect of electricity bills, rent, etc.
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d. Portfolio Management: The bank also undertakes to purchase and sell the shares and debentures on behalf of the clients and accordingly debits or credits the account. This facility is called portfolio management.
e. Periodic Collections: The bank collects salary, pension, dividend and such other periodic collections on behalf of the client.
f. Other Agency Functions: They act as trustees, executors, advisers and administrators on behalf of its clients. They act as representatives of clients to deal with other banks and institutions.
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2. General Utility Functions: The bank also performs general utility functions, such as:a. Issue of Drafts, Letter of Credits, etc. b. Locker Facility c. Underwriting of Shares d. Dealing in Foreign Exchange e. Project Reports f. Social Welfare Programmes g. Other Utility Functions
a. Issue of Drafts and Letter of Credits: Banks issue drafts for transferring money from one place to another. It also issues letter of credit, especially in case of, import trade. It also issues traveler‟s cheques.
b. Locker Facility: The bank provides a locker facility for the safe custody of valuable documents, gold ornaments and other valuables.
c. Underwriting of Shares: The bank underwrites shares and debentures through its merchant banking division.
d. Dealing in Foreign Exchange: The commercial banks are allowed by RBI to deal in foreign exchange.
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e. Project Reports: The bank may also undertake to prepare project reports on behalf of its clients.
f. Social Welfare Programmes: It undertakes social welfare programmes, such as adult literacy programmes, public welfare campaigns, etc.
g. Other Utility Functions: It acts as a referee to financial standing of customers. It collects creditworthiness information about clients of its customers. It provides market information to its customers, etc. It provides traveller‟s cheque facility.
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INTRODUCTION OF HUMAN RESOURCE MANAGEMENT: Human resource management (HRM or simply HR) is a function in organizations designed to maximize employee performance in service of an employer's strategic objectives. HR is primarily concerned with the management of people within organizations, focusing on policies and on systems. HR departments and units in organizations typically undertake a number of activities, including employee recruitment, "training and development", performance appraisal, and rewarding (e.g., managing pay and benefit systems). HR also concerns itself with industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws. HR is a product of the human relations movement of the early 20th century, when researchers
began
documenting
ways
of
creating business
value through
the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advances, and further research, HR as of 2015 focuses on strategic initiatives like mergers and acquisitions, talent
management, succession
planning, industrial and labor
relations, and diversity and inclusion. In startup companies, trained professionals may perform HR duties. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision-making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have established programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications. HR is also a field of research study that is popular within the fields of management and industrial/organizational psychology, with research articles appearing in a number of academic journals, including those mentioned later in this article. In the current global work environment, most companies focus on lowering employee turnover and on retaining the talent and knowledge held by their workforce. New hiring not only entails a high cost but also increases the risk of a newcomer not being able to replace the person who worked in a position 21
before. HR departments strive to offer benefits that will appeal to workers, thus reducing the risk of losing corporate knowledge.
Meaning: Human Resource Management is the process of recruitment, selection of employee, providing proper orientation and induction, providing proper training and the developing skills, assessment of employee (performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper relations with labour and with trade unions, maintaining employee‟s safety, welfare and health by complying with labour laws of concern state or country.
Why name human resource management? Human: refer to the skilled workforce in the organization. Resource: refer to limited availability or scarce. Management: refer to maximize or proper utilization and make best use of limited and a scarce resource.
Altogether, human resource management is the process of proper and maximize utilization of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organization. The Best example at present situation is, construction industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent, will negatively impact the overall productivity of
the
sector,
warn
industry
experts.
Every organization‟s desire is to have skilled and competent people to make their organization more effective than their competitors. Humans are very important assets for the organization rather than land and buildings, without employees (humans) no activity in the organization can be done. Machines are meant to produce more goods with good quality but they should get operated by the human only. 22
"You must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you, then you must protect the respect and dignity. " ---Mr. N.R. Narayana Murthy, Chairman Emeritus, Infosys Ltd >>.
“Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource.” - John F. Kennedy.
Great Quotations: “The greatest tragedy in America is not the destruction of our natural resources, though that tragedy is great. The truly great tragedy is the destruction of our human resources by our failure to fully utilize our abilities, which means that most men and women go to their graves with their music still in them.” - Oliver Wendell Holmes. “The human mind is our fundamental resource.” - John F. Kennedy.
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HUMAN RESOURCE MANAGEMENT: For any organization to function effectively, it must have resource of men (Human Resource), money, materials and machinery. The resources by themselves cannot fulfill the objectives of an organization, they need to be collected, coordinated and utilized through human resources. And, the effective management of human resources is also vital. Hence, Human Resource Management (HRM) has emerged as a major function in organizations. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance
management,
organization
development, safety, wellness, benefits, employee motivation, communication, administration, and training. The administrative discipline of hiring and developing employees so that they become more valuable to the organization. Human Resource management includes: 1. Conducting job analyses, 2. Planning personnel needs, and recruitment, 3. Selecting the right people for the job, 4. Orienting and training, 5. Determining and managing wages and salaries, 6. Providing benefits and incentives, 7. Appraising performance, 8. Resolving disputes, 9. Communicating with all employees at all levels. Formerly called personnel management. 10.Maintaining awareness of and compliance with local, state and federal labor laws. 11.These are also called as functions of human resource management for the purpose of effect you utilization of human resource.
The ten "Cs" of human resources management are: cost effectiveness, competitive, coherence, credibility, communication, creativity, competitive advantage, competence, change, and commitment. The ten "Cs" framework was 24
developed by Alan Price in his book "Human Resource Management in a Business Context".
The HR Director is a top-level manager responsible for the administration of all human resource activities and policies. The director oversees compensation, benefits, staffing, affirmative action, employee relations, health and safety, and training/development functions. They also supervise professional human resources staff. Definitions: Many great scholars had defined human resource management in different ways and with different words, but the core meaning of the human resource management deals with how to manage people or employees in the organization. Edwin Flippo defines - HRM as “planning, organizing, directing, controlling
of
procurement,
development,
compensation,
integration,
maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”. According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”.
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OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:
1. Societal objective: To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions.
2. Organizational objective: To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization.
3. Functional objective: To maintain the department's contribution at a level appropriate to the organization‟s needs. Resources are wasted when HRM is more or less sophisticated than the organization demands. A department's level of service must be appropriate for the organization it serves.
4. Personal objective: To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organization. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organization.
NATURE OF HUMAN RESOURCE MANAGEMENT: Human Resource Management involves management functions like planning, organizing, directing and controlling
It involves procurement, development, maintenance of human resource.
It helps to achieve individual, organizational and social objectives.
Human Resource Management is a multidisciplinary subject. It includes the study of management, psychology, communication, economics and sociology.
It involves team spirit and team work.
It is a continuous process.
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ADVANTAGES / BENEFITS / SIGNIFICANCE / IMPORTANCE / NEED OF HUMAN RESOURCE MANAGEMENT:
I emphasize this - no matter how good or successful you are or how clever or crafty, your business and its future are in the hands of the people you hire. --- Akio Morita (Late) (Businessman and co-founder of Sony Corporation. Japan) Ref: The Book: MADE IN JAPAN. Page.No.145
Human Resource Management becomes significant for business organization due to the following reasons.
Objective: Human Resource Management helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc.
Facilitates professional growth: Due to proper Human Resource policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future.
Better relations between union and management: Healthy Human Resource Management practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced.
Helps an individual to work in a team/group: Effective Human Resource practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves.
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Identifies person for the future: Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.
Allocating
the
jobs
to
the
right
person:
If
proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover.
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SCOPE OF HUMAN RESOURCE MANAGEMENT The scope of Human Resource Management refers to all the activities that come under the banner of Human Resource Management. These activities are as follows.
Human resources planning: Human resource planning or Human Resource Planning refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 29
Job analysis design: Another important area of Human Resource Management is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Recruitment and selection: Based on information collected from job analysis the company prepares advertisements and publishes them in the newspapers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of Human Resource Management. Orientation and induction: Once the employees have been selected an induction or orientation program is conducted. This is another important area of Human Resource Management. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees. Training
and
development:
Every
employee
goes
under training
program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area where the company spends a huge amount. Performance appraisal: Once the employee has put in around 1 year of service, performance appraisal is conducted that is the Human Resource department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. Compensation planning and remuneration: There are various rules regarding compensation and other benefits. It is the job of the Human Resource department to look into remuneration and compensation planning.
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Motivation, welfare, health and safety: Motivation becomes important to sustain the number of employees in the company. It is the job of the Human Resource department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department. Industrial relations: Another important area of Human Resource Management is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.
The Human Resource Officer is responsible for providing support in the various human resource functions, which include recruitment, staffing, training and development, performance monitoring and employee counseling.
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HUMAN RESOURCE MANAGEMENT PRACTICES IN SELECTED PUBLIC AND PRIVATE SECTOR BANKS
I. INTRODUCTION:
The study of human resource management practice has been an important and critical area in management and organizational performance from last several years especially in the banking industry. Influence of Human Resource Management practices on organizational performance has been an important area of research in past 25 years indicating positive relationship between HR practices and organizational performance. Human resource management (HRM) practices are being increasingly treated as dependent rather than independent variables in the olden days, management gurus and researchers were involved in exploring how HRM practices affected employee performance, and overall bank performance. The banking industry, one of the major segments of the financial system plays a crucial role in the economic and social development of a country. A strong and healthy Banking system is indispensable in a modern society as a financial intermediary and occupies a unique position in a nation‟s economy. Indian banking sector has been passing through different phases such as pre-nationalization, postnationalization and post liberalization phase.
II. PUBLIC SECTOR BANKS:
Public sector banks are those banks that are owned by the government. The government owns these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. Social welfare is there main objective of these banks. They are divided into two groups i.e. Nationalized Banks and State Bank of India and its associates. Among them, there are 19 nationalized banks and 8 State Bank of India associates. Public Sector Banks dominate deposits and advances in the banking industry. Public Sector banks dominate the commercial banking scenario in India. These public sector banks can be further classified into: 1) State Bank of India 2) Nationalized banks 3) Regional Rural Banks
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III. PRIVATE SECTOR BANKS:
These banks are those banks that are owned and run by private sector. An individual has control over these banks in proportion to the shares of the banks held by him. Private sector banks came into existence to supplement the performance of Public sector banks and serve the needs of the economy better. As the public sector banks were merely in the hands of the government, banks had no incentive to make profits and improve the financial. The main difference is only that public sector banks follow the RBI Interest rules strictly but private sector banks can effect some changes but only after approval from the RBI!
IV. WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT FOR BANKS:
Human Resource Management is important for banks because banking is a service industry. Management of people and risk are two key challenges faced by banks. Efficient risk management may not be possible without efficient and skilled manpower. Banking has been and will always be a „People Business‟. Though pricing is important, there may be other valid reasons why people select and stay with a particular bank. Banks must try to distinguish themselves by creating their own niches or images, especially in transparent situations with a high level of competitiveness.
In coming times, the very survival of the banks would depend on customer satisfaction. Values need to be emphasized through concrete actions on the ground and it would be the bank‟s human resource that would deliver this.
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HUMAN RESOURCE MANAGEMENT IN BANKS The Classification of the Indian Banks into broad groups such as public sector, old private sector, new private sector, foreign, regional rural banks and cooperatives are largely on the basis of ownership pattern. It is also well known that the business mix, delivery channels and IT strategies of these organizations vary substantially. What is little known but of greater importance is that each of these banks follows very distinct HR practices which have contributed, substantially, to the business processes. HUMAN RESOURCE MANAGEMENT IN PUBLIC SECTOR BANKS In the recent times, the contours of HR function in public sector banks are slowly but definitely changing. One could say that these banks are discovering the HR function and it is hoped that these banks will fast catch up with others. It may be recalled that, in a controlled environment and to meet with the rapid branch expansion since 70s- Public Sector Banks (PSBs) have adopted HRM practices similar to that of Government departments. Herein HRM did not have a direct role in business development but was more concerned with centralized recruitment to staff and providing them across the country. HUMAN RESOURCE MANAGEMENT IN PRIVATE SECTOR BANKS The HR function has practiced by private banks is effectively involved in the identification of specific skills that each job warrants and recruiting suitable staff by every way possible. In these banks, recruitment is a continuous process with a strong focus on getting the right person for the right job by offering appropriate compensation, incentives and designation. There is a great energy spent in keeping the turnover low and offering appropriate training inputs. Possibly there are as many pay structures as there are employees. More importantly, HRM has a role in monitoring and mentoring the employee. There are no routine transfers. Rather people are recruited in different geographical locations and different levels. Technology has helped in centralizing the back office and other functions such that service can be provided from a distance. These institutions adopt a proactive performance appraisal system but still short of 360 Degree appraisals. Their training process is concerned with both skill building and motivating. It should, however be said that the demand for professionals on account of growth of Indian Business is such that the efforts of HRM have not helped it from completely staving off staff turnover in the ranks. 34
RESPONSIBILITIES OF THE HUMAN RESOURCE MANGEMENT DEPARTMENT IN BANKS Role: The role of the Human Resource Department is to create the climate and conditions in which management throughout the Bank will be enabled to optimize the individual and collective contributions of all employees to the short and long term success of the Bank. Responsibilities: To be the principal sponsor & “guardian” of HR policies in the Bank. To propose and obtain agreement on changes to these policies which have been agreed are being implemented throughout the Bank. To contribute fully to the task of meeting the business challenges which the bank has to face by supporting Branch / Unit Managers in continuously developing the potential of employees and in creating conditions in which all the employees are motivated to meet the objectives of the Bank. To continuously monitor the Bank‟s strategies to ensure that HR policies are appropriate and that employees numbers and skills are fully supportive of such strategies. To deliver a full range of personnel services in support of line management. These services include manpower planning, recruitment/transfer, remuneration, training and employee welfare. To support line management in their day-to-day management of the workforce by providing advice and consultancy on personnel and performance management issues.
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CURRENT
CHALLENGES
FACED
BY
BANKS
IN
HUMAN
RESOURCE MANAGEMENT Effective work force: A time-consuming and hectic job is to hunt the right talent. Higher the professional value of the vacancy, tougher is the search. Identifying the right stuff followed by negotiation is the element which makes the job tough for the employee. Banks are keenly interested to fill up two types of breeds of professionals.
Ones who are outstanding professionals with high job hopping attitude--- these are those who come-in-work for some time and then leave for better prospects. Others are those who are keenly picked-up, trained and area somehow retained to be developed as future management within the bank.
Management trainees are a growing popular phenomenon where freshly qualified business graduates are engaged by banks and a certain percentage of these well-equipped professionals stay back within the organization to grow into the footsteps of senior managers.
Banking jobs being apparently lucrative for many, attract a large number of candidates against advertised vacancies in media creating a large database management problem. This has been facilitated by specialized hiring agencies who may take up the job of hiring in case of large number of vacancies. Right People: The most difficult agenda of HRM across the banking sector is to retain the right people. Sudden growth of retail banking and other services has put pressure on HR Managers in banks to engage more professionals within shorter span of time thereby attracting manpower in other banks on attractive packages has made the job market very competing.
A bank in a normal course invests time and money to hire and train the appropriate workforce for its own operations. This readymade force is often identified and subsequently picked-up on better terms by others.
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Compensation: How much to pay the right employee and how much to the outstanding performer. Banks have traditionally followed pay scales with predetermined increments, salary slabs, bonuses and time based fringe benefits like car and house advance, gratuity, pensions, etc.
The situation is not the same anymore. An increment of Rs500-800 per annum is no more a source of attraction for a professional anymore. A basic pay with traditional formulas of linkage with medical and other facilities has no soothing today.
A promise of future growth, learning culture and corporate loyalty is out of dictionary and does not mean anything to this energetic and competent performer today.
A waiting period of 3-4 years in each cadre haunts the incumbents who strongly believe in immediate compensation. A freshly hired professional requires a brand new car or car loan n resuming office quite contrary to his previous breed Of bankers who would wait for the job seniority to qualify for a car loan. Job Satisfaction:
Everybody in the bank wants to work in the professional department, preferential location, city of his own choice and boss of his liking. An administrative deviation from any of these results in lowered job satisfaction.
Although hiring is normally based on regional requirement matching the area of activity with that of employee‟s nativity yet other elements like appointment in the department of choice and preference makes the job of HR manager quite challenging.
What the HR manager cannot afford is the dissatisfied employee who not only disrupts the smooth working himself, but also spreads the negativity to others by his de-motivated attitude.
37
Morale Boosting: What has long been overlooked is the morale boosting of the employees by the organization. Human beings even if satisfied of material wellbeing need to be appraised and encouraged constantly.
Smart banks have realized this need and have taken steps to keep their work force motivated through proper encouragement like man of the mouth awards, repeat get-togethers, conferences, sports events, dinners, company sponsored travel, reunions, etc. This is the way employees create a feeling of belongingness.
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Challenges Faced By Banking Industry
Here are the ten challenges that the HR function in India faces:
1) The first and foremost challenge that HR function in India faces is to convert the abundant population pool into useful human resource.
2) Training and development of human resource to match ever changing industry demands re-quires HR to develop new and innovative ideas that suit individual as well as industry criteria.
3) Employee motivation and satisfaction is another area of concern for the HR today. In order to reduce attrition, HR needs to realize that monetary needs are not the only drive for an individual and that a sense of belongingness must be imbibed in employees.
4) With the increase in number of job options available nowadays, the HR function of an organization must take care that they hire those people who believe in longterm commitment to the organization. The HR then must take up the challenge of retaining them by developing retention techniques like Holiday plans fun-at-work etc. 5) Because of cutthroat competition, HR in India also faces the task of building competitive ad-vantage for the company over national and international competitors.
6) The growing importance that companies are nowadays giving to cost-cutting has posed HR with the challenge to minimize expenditure on HR not compromising on the productivity.
7) Since right-sizing has been a growing trend in Indian organization, the HR now faces the task of identifying and retaining the key employees of an organization and letting go those that do not suit its future requirements.
39
8) HR also faces the challenge of creating a balanced organization that originates from mergers and acquisitions. HR needs to assimilate those policies that are mutually agreeable to the companies being merges as well as profitable for the new organization.
9) Globalization poses HR with challenges such as expatriation and repatriation. HR needs to train employees that leave their nation for fulfilling a foreign assignment. It also needs to pro-vide such employees with adequate moral support and assure them of job security on their return.
10) With multinational organizations on the rise, HR needs to focus on issues such as cross-cultural training so that problems that can arise because of differences in international professional values can be diminished.
Meeting HR Challenges:
The banking sector has been growing at a very fast pace in India not only in the terms of its size but also in terms of the services being provided. With banks reaching the remote areas in the country one can anticipate positive things like financial aid to farmers and increased financial awareness. However, with the increase in size and activities of banks, the number of banks in private sectors has also increased thereby posing challenges like cost-efficiency, technological advancement, and credibility related issues. The task before the HR is to develop strategies that help banks in gaining competitive advantage and encourage innovation in its products and services. Managing Human Resource:
Considering the above HR challenges which our Indian banking industry is facing, we can manage the human resources by proper Planning like Hiring the right person for the right job Retaining and Developing Managing people/ conducting exit interviews
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Hiring the Right Person for the Right Job:
In assessing whether the "right person" has been selected for the "right job", the most prominent theoretical concept that emerges is the concept of "fit". Different writers emphasize different types of fit. Sekiguchi (2004: 179) in a review of literature on person-environment fit discusses two types of fit that emerge as the most prominent types of fit: person job fit and person-organization fit. In pursuing person-job fit, companies seek to match the job holder's knowledge, skills and abilities to the requirements of the job. Companies can ascertain personorganization fit by focusing on how well the individual fits with the culture or values of the company and the individual's capacity to work well with other company employees.
Banks have to plan for the following: A steady, carefully calibrated recruitment programme. As rapid technological changes transform business – continuous skill upgradation. A new generation of the workforce working alongside an older generation as a team. Banking, it is a team work and these new situations require cultural adjustments and therefore, change management.
Retaining and Developing Employees:
We may be able to get the most suited people for our work but then the challenge is to retain these people and to develop them. There are several dimensions to this issue such as training/ re-skilling of employees, performance measurement, promotion policy, transfer policy, talent management, communication, etc. In this study some of them for discussion: Training and Development:
With drastic growth of banks it calls for efficient and well trained staff members to handle/deal with the consumer needs. Banks are shaping up as financial hub for their clients to grow in size and well recognized in the world market. To pull consumers banks are offering traditional with advance services like SMS banking, 41
ATM, internet banking, priority banking, demat. So we can say that it caters to the need of the bottom to the highest class of society providing something to everyone. Universal banks have become modern day‟s supermarket extending almost every facility of banking under one roof.
Banks like Bank of Baroda are conducting Grooming and etiquettes programmes for front line employees and also for employees selected for overseas posting in order to improve their service levels and qualitative interaction with customers and various stakeholders better. SEED (Self efficiency and effectiveness development) programme being run for frontline staff of the Bank in order to improve their service skills and servicing efficiency.
In Punjab National Bank, in the light of the large scale human resources gaps that Bank is likely to face in the next few years need for Succession Policy has been felt. The Policy envisages mapping of the 'existing pool' against the 'future requirement' from the projected business figure to ensure that adequate number of officials are available in the pool and also to foresee the surplus / deficit in the pool for ascertaining the requirement of succession in a particular vertical. Bank has a three tier training set up comprising of Central Staff College (CSC) at Delhi at apex level catering to training needs of Top / Senior / Middle Management Grade officers, three Regional Staff Colleges (RSCs) located at Belapur Navi Mumbai, Lucknow and Panchkula for training needs of Senior / Middle /Junior Management officers as well as workman staff and seven Zonal Training Centres (ZTCs) at Dehradun, New Delhi, Jaipur, Kolkata, Kozhikode, Ludhiana and Patna looking after the training needs of Middle / Junior Management Grade officers & Workman Staff. IT Training Centre located at Faridabad caters to the training needs of officers exclusively in the areas of Information Technology. Performance Management: Banking service is one sector where a great degree of attention is being paid to performance appraisal system. Several of the nationalized banks have changed their performance appraisal system or are in the process of changing them. In most of the banks that follows the traditional system, their officers are being assessed on the following characteristics: General Intelligence Job Knowledge 42
Initiative and resourcefulness Supervision Business Capacity Ability to assess sound Business propositions Dependability Relationship with junior & senior colleagues Relationship with public Conduct, manners, Managerial ability Failures that attracted issue of warning by superiors
Several of the banks also have self-appraisal as a part of performance appraisal, although mostly such self-appraisal is more of a communication of achievements. A fair, transparent and objective mechanism for performance management is a must for all banks because an effective Performance Man-agement System is the key to talent management and succession planning. RBI is shortly going to introduce a new Performance Management System that will work on goal setting, potential appraisal of performers and developing a talent pipeline. With all these changes we are also going to face major challenges on the Talent Management front.
In coming times, the work force will get complex and there will be a need to juggle a wide variety of people with varied needs and preferences, resulting in an array of relationships between the organization and those who work for it.
Peter Drucker had, more than a decade ago, expressed the need for what he called “non-traditional” work relations: flexible schedules, contract arrangements, virtual teams, etc.
Some other HR practices and benefits given to employees: Gratuity:
HDFC Bank provides for gratuity to all employees. The benefit is in the form of lump sum payments to vested employees on resignation, retirement, death while in 43
employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service. Vesting occurs upon completion of five years of service. Superannuation:
Employees of the Bank, above a prescribed grade, are entitled to receive retirement benefits under the Bank‟s Superannuation Fund. The Bank contributes a sum equivalent to 13% of the employee‟s eligible annual basic salary (15% for the Managing Director, Executive Directors and for certain eligible erstwhile Centurion Bank of Punjab („eCBoP‟) staff) to insurance companies, which administer the fund. The Bank has no liability for future superannuation fund benefits other than its contribution, and recognizes such contributions as an expense in the year incurred, as such contribution is in the nature of defined contribution. Short Term Employee Benefits:
In State Bank of India the undiscounted amount of short-term employee benefits, such as medical benefits, casual leave etc. which are expected to be paid in exchange for the services rendered by employees are recognized during the period when the employee renders the service.
The Bank operates a Provident Fund scheme. All eligible employees are entitled to receive benefits under the Bank‟s Provident Fund scheme. The Bank contributes monthly at determined rate (currently 10% of employee‟s basic pay plus eligible allowance). These contributions are remitted to a trust established for this purpose and are charged to Profit and Loss Account. The Bank provides for pension to all eligible employees. The benefit is in the form of monthly payments as per rules and regular payments to vested employees on retirement, on death while in employment, or on termination of employment. Vesting occurs at different stages as per rules.
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SUGGESTIONS
The banking sector has grown from a few institutions primarily involved in deposit acceptance and trade finance into a complex multi-player markets where large number of commercial banks, financial institutions and specialized banks are operating with various product activities. Like many other organized sectors, banking requires multi-layer manpower for its various requirements of professionals and support staff. The range may require reasonably educated security guards on the one hand and a highly educated and trained professional as head of corporate finance. With liberalization of activities within the banking sector, for example, more emphasis on consumer and house finance and personal loans, etc. Banking has turned itself into a more market based business where banks have expanded their reach more to customer‟s door step in a big way making banking more practical. This has further highlighted the need for proper development of man power to run banks efficiently. Smart banks have realized this need and have taken steps to keep their workforce motivated through proper encouragement like man of the month award, repeat get-together, conferences, sports events, dinners, company sponsored travel, reunions, etc.
In spite of all these facilitations there still exist several lacunas in the HRM practices in banking industry.
Some of the specific suggestions based on survey of literature as well as the group discussions and survey are given here under:
1) There should be a balanced compromise between organizational need and individual need. Total insensitiveness to individual preference gives rise to frustration at some point of time, which as a consequence has a real damaging effect on the organizational growth itself.
2) While there must be rewards for performance, non-performance must be punished/ reprimanded. Promotions must be only on merit.
3) There must be uniform, impartial and balanced “employee performance review system.” This system in fact needs a total review. 45
4) Enthusiastic and pleasant behaviour of staff to the customer is necessary.
5) There must be a clearly defined system of succession planning and career growth planning in banks.
6) Attitudinal changes are required at the top level.
7) Human resource Balance Sheet should accompany financial statements.
8) In order to become HRD conscious, the Public Sector Banks should allow independent functioning of HRD section, where the top person should be himself a good successful banker, a real HRD person free from any biases. Acme Intellects International Journal of Research in Management, Social Sciences & Technology ISSN 2320 – 2939 (Print) 2320-2793 (Online) Let your Research be Global search– An Ultimate search of Truth- Reforms through Research Vol- 9 No. 9 Jan 2015 “Aano bhadraa krathavo yanthu vishwathaha”-"Let the noble thoughts come to all from all directions". Page No.8 Acme Intellects Research Center- A wing of Help to Help Charitable Trust®
9) More openness, transparency in personal matters, high value of human dignity, people oriented management system, creating belongingness and trust, two-way communication.
10) Banks should have a system, whereby the training needs of an employee are identified and are duly fulfilled at every stage of career growth.
11) Have special R & D wings in HRD Department for ongoing in house & external research development, review and implementation of HRD policies.
12) There should be award schemes administered by prestigious organizations and Govt. agencies for best HRD policies & Practices amongst Public Sector Banks, etc. 46
HUMAN RESOURCE MANAGEMENT IN PUBLIC AND PRIVATE SECTOR BANKS Introduction: At present, Indian banking sector is facing wide variety of opportunities and the bright future scenario. The changing economic scenario, represented by rapid process of globalization has brought out all the nations of the world together, without geographical boundaries for trade and commerce but with great amount of employment opportunities for individuals. Due to rapid advancement in information technology and telecommunication in the recent years, the banking industry has been undergoing rapid changes, reflecting a number of ongoing reform processes. However, there are certain problems in the Indian Banking system, which require great attention. Some of the major problems are: Continuous accumulation of morass, which hampers the profitability of the banks. Accumulation of Non-Performing Assets (NPAs), which threatens capital adequacy and continuous stability of banks. Some of the public sector banks are facing heavy over staffing, which reduces productivity of the banks. Above all these require a drastic change in the recruitment, training, placement and promotion policies of the banks. Thus, the main concern is how to remove legacies of the past and meet the demands and challenges of the new era.
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HUMAN RESOURCE MANAGEMENT PRACTICES
Human resources management practices play a very vital role in achieving the organization‟s goals and maintain the competitive advantage.
HRM practices refer to organizational activities directed at managing the pool of human resource and ensuring that the resources are employed towards the fulfillment of organizational goals (Schuler & Jackson 1987). Human resource management practices is the management of people within the internal environment of organizations, comprises the activities, policies, and practices involved in planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organization‟s objectives (Appelbaum 2001). Presently organizations are competing through implementing the unique HRM practices and due to the globalization organizations adopt the most up-to-date HRM practices in order to accomplish the organizational goals. Best HRM practices are advantageous for both employee and employer; it plays an important role in constructive growth of the organization.
Keeping in view of HRM practices, it is understood that the HRM did not has direct role in business development but was more concerned with centralized recruitment to staff. In this context, the review of the study covers the following most important indicators of HR practices, which were followed by any public sector bank. Job analysis:
Job analysis involves collecting information about the characteristics of a job using one of several methods: observation, interviewing, questionnaires, or more specialized job analysis methods such as position or functional analysis. Organizations sometimes use a combination of job analysis methods (Hawthorne, 2004; Mathis & Jackson, 1997). All the Banking authorities reported that they follow a combination of several methods for job analysis of the employee. Recruitment and selection: 48
Public Sector Banks follows systematic procedure in recruitment and selection activities. For Recruitment and Selection these banks follows some standard most of the cases. The practiced arrangement for selection and recruitment is the corporate decide what positions will have to fill and how to fill the immediate as well as future requirements.
This total procedure is designed to cover all positions from bottom to top level. Indian Public Sector Banks use both methods of recruitment i.e., internal and external markets. Usually, for clerical and officer posts, external market is used through advertising etc. On the other hand, the managerial/executive positions are filled up through promotions and transfers i.e., for higher positions the internal market is usually relied upon. In some of the PSBs in India, the practice of recruiting specialists such as technical employees, management trainees etc. directly from the reputed institutions through campus interviews have been started. Some banks are also utilizing the services of consultants and employment on contract basis. Training and Development:
HRD as one of the major functional area in HRM. Continuing education and training programmes are essential considerations to enrich their careers and excel their development. Banking activities and knowledge is ever changing. In order to cope up with these changes and to develop employees‟ careers all banks established their own training institute. Those institutes organized different types of training and development programmes based on the employees need. Those needs are identified by need assessment activities.Volume-3, Issue-12, Dec-
Training is more in IPSBs because the training system in the banking industry has a strong structural base, and has capabilities to handle training in large numbers. The system has also developed several innovative activities in the training area such as on-location training, manager to messenger programmes. Further the IPSBs have a good support to training efforts from apex level training institutions such as National Institute of Bank Management (NIBM), Bankers Training College (BTC), and College of Agricultural Banking (CAB). The IPSBs have more than three hundred individual bank level training colleges and training centers. 49
Training is given emphasis by all banks, although not much systematic training need analysis is carried out. The training colleges conduct training programmes for relatively junior level bank staff. For most of the senior level training, banks depend on external agencies, especially foreign training organizations. Training establishments of some of the bigger banks complain of under utilization. Performance Appraisal:
Performance appraisal is the systematic, periodic and an impartial rating of the employee‟s excellence in matters pertaining to his present job and of his potentialities for a better job.(Edwin B. Flipp). Public Sector Banks in India give more attention towards performance appraisal in the organizations. Performance appraisal based on quality of output, potential of the employee within the organization etc. need to be incorporated across all grade, cadres and levels. This will not only ensure maximizing productivity, but also go a long way in motivating star performers aligning with the long-term mission and vision of banks. Compensation:
In general, the compensation in Public Sector banks is mostly based on seniority or work experience. The Indian public sector banks should reward their professionally qualified employees by scale up-gradation and special increments besides motivating and encouraging them to acquire new knowledge. Common pay structures based on number of years of service with the bank put in etc need to be phased out in a planned manner.
SUGGESTIONS 50
On the basis of review of this study the following suggestions are made for better HRM practice in the Public sector banks in India: In the recruitment and selection process of employees, the banks should give priority to the candidates who has graduate and above degrees in Information Technology, experience, skills, competencies etc. It is also suggested that institutional training should provide effective skills to employee. Employees should be motivated to utilize the material and libraries so that competency gap would be reduced. It is necessary for restructuring of salary to motivate employees in particularly in public sector banks. To develop human resources, the bank should undertake different human resource development programmes including continuing education and training, IT-orientation, career development, etc. Banks can send bright employees to abroad on fellowship/scholarship for higher studies and learn new technology in order to attain competence at global level. Banks should organize seminars, workshops, conferences, different short courses, and training programmes on financial matters, current issues, software up gradation on regular basis that would definitely help to develop knowledgeable manpower, create awareness and change mental attitudes among the professionals. All banks should allocate sufficient budget and sends competent employees to international conferences and seminars to prepare them for the competitive knowledge global market. Human Resource Department is essential to empower the department or divisions for handling different issues in HRM in banks. The divisions should be incorporated with well-organized human resource information systems and modern information technology facilities. 51
Public sector banks should frequently invite staff for suggestions and their active participation in meetings in order to encourage and staff satisfaction. The training colleges conduct training programmes for relatively junior level bank staff. For most of the senior level training, banks depend on external agencies, especially foreign training organizations. It is to better to utilize of bigger banks training institutions even for senior level instead of depending on external agencies or foreign organizations. It is suggested that employee potential should be evaluated based on objective assessment but not on favoritism. Transparency in evaluation and promotion policy also suggested.
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HUMAN RESOURCE MANAGEMENT IN SBI BANK:
State Bank of India is the nation's largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806), the bank operates more than 15,000 branches within India, where it also owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring and commercial services, credit cards, and brokerage services. The Reserve Bank of India owns about 60%of State Bank of India Human Resources Development Department HRDD Vision
The Vision of the Human Resources Development Department (HRDD) is essentially to facilitate the Bank to carry out central banking activities, i.e. to create an enabling environment to enhance the efficiency of the organization. To draw out from our staff the very best by a system of proper placements, incentives, To create an atmosphere of trust, a certain security of expectations and feeling that the organization cares about the well-being and personal aspirations of the staff. This would help align personal aspirations with professional goals and help enhance efficiency.
The Mission of HRDD is to create a facilitating environment to enhance the efficiency of the Bank; to empower the staff so as to draw out the latent potential; and to catalyze conditions for a more wholesome quality of life on the work as wells personal front. Functions of to evolve HR policies on Recruitment: For the decade as a whole, for the SBI group, 25.4% of the staff were officers, 51.0% were clerks, and 23.6% were subordinate staff. The composition of staff was the same for the nationalized banks with 27.9% of staff being officers, 50.7% being clerks, and 21.4% being subordinate staff.
Performance and Potential Appraisal: The promotion to a higher management level is best thought of through the lens of a tournament model (Lazar and Rosen, 1981) where the prize in terms of compensation for a position in the hierarchy is fixed in advance and is independent of absolute performance. In effect, an employee is
53
promoted to the next higher level/grade not because he is good, but because he is better than everybody else at the current level/grade.
Placement Promotion and Career Progression, Out of Turn Promotion/ Increment to Sports Person industrial Relations, Deputation / Secondment. Retirement and Voluntary
Vacation
Motivation,
Training
Establishments,
Mobility
(Transfer/Rotation),Remuneration and Reward Mechanism, Staff Welfare, Communication Organizational Development, Training and Skills Up gradation (Policy and Implementation,
Other than policy aspects: Interface with other institutions, government, central banks, etc. on HRD issues. To maintain up to date database on human resources in the Bank and undertake analytical studies and ongoing research on different manpower related issue. To make ongoing review of the appraisal system in order to make it ineffective tool for HRD policy management. To install and implement an effective counseling system. To design career and succession plans. To review and revitalize the training functions, Summer Placement, Formulate and administer the Staff Suggestion Scheme, Publication of House Journal, Without Reserve.
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CASE STUDY OF HUMAN RESOURCE MANAGEMENT IN SBI BANK Case Details: Case Code
:
HROB007
Case Length
:
04Pages
Period
:
2001
Organization
:
State Bank of India
Pub Date
:
2001
Teaching Note
:
Available
Countries
:
India
Industry
:
Banking and Finance
Themes: HR Practices and Policies
Issues: » How poor manpower planning led to problems with the bank's VRS
Keywords: State Bank of India, VRS, developments, Indian public sector bank, SBI, VRS, reasons, employees, protesting, post-VRS scenario "They are propagating the VRS in such a manner that the employees are being compelled to opt for the scheme." - V.K.Gupta, SBI employee's union leader in December 2000.
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VRS TROUBLES: In February 2001, India's largest public sector bank (PSB), the State Bank of India (SBI) faced severe opposition from its employees over a Voluntary Retirement Scheme (VRS). The VRS, which was approved by SBI board in December 2000, was in response to Federation of Indian Chambers of Commerce and Industry's (FICCI)1 report on the banking industry. The report stated that the Indian banking industry was overstaffed by 35%. In order to trim the workforce and reduce staff cost, the Government announced that it would be reducing its manpower. Following this, the Indian Banks Association (IBA)2 formulated a VRS package for the PSBs, which was approved by the Finance ministry. Though SBI promoted the VRS as a 'Golden Handshake,' its employee unions perceived it to be a retrenchment scheme. They said that the VRS was completely unnecessary, and that the real problem, which plagued the bank were NPAs 3. The unions argued that the VRS might force the closure of rural branches due to acute manpower shortage. This was expected to affect SBI's aim to improve economic conditions by providing necessary financial assistance to rural areas. The unions also alleged that the VRS decision was taken without proper manpower planning. In February 2001, the SBI issued a directive altering the eligibility criteria for VRS for the officers by stating that only those officers who had crossed the age of 55 would be granted VRS.
Consequently, applications of around 12,000 officers were rejected. The officers who were denied the chance to opt for the VRS formed an association – SBI VRS optic Officers' Association to oppose this SBI directive. The association claimed that the management was adopting discriminatory policies in granting the VRS...
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Background Note: The SBI was formed through an Act of Parliament in 1955 by taking over the Imperial Bank. The SBI group consisted of seven associate banks: • State Bank of Hyderabad • State Bank of Indore • State Bank of Mysore • State Bank of Patiala • State Bank of Saurashtra • State Bank of Travancore • State Bank of Bikaner & Jaipur. The SBI was the largest bank in India in terms of network of branches, revenues and workforce. It offered a wide range of services for both personal and corporate banking. The personal banking services included credit cards, housing loans, consumer loans, and insurance. For corporate banking, SBI offered infrastructure finance, cash management and loan syndication...
The Protests: The SBI was shocked to see the unprecedented outcry against the VRS from its employees. The unions claimed that the move would lead to acute shortage of manpower in the bank and that the bank's decision was taken in haste with no proper manpower planning undertaken.
They added that the VRS would not be feasible as there was an acute shortage of officers (estimated at about 10000) in the rural and semi-urban areas where the branches were not yet computerized. Moreover, the unions alleged that the management was compelling employees to opt for the VRS. They said that the threat of bringing down the retirement age from 60 years to 58 years was putting a lot of pressure on senior bank officials to opt for the scheme...
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The Post VRS Days: According to reports, SBI's total staff strength was expected to come down to around 2, 00,000 by March 2001 from the pre-VRS level of 2, 33,000 (Refer Table III). With an average of 5000 employees retiring each year, analysts regarded VRS as an unwise move. By June 2001, SBI had relieved over 21,000 employees through the VRS. It was reported that another 8,000 employees were to be relieved after they attained the retirement age by the end of 2001. Analysts felt that this would lead to a tremendous increase in the workload on the existing workforce
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HUMAN RESOURCE MANAGEMENT IN ICICI BANK:
The achievement of an organization is the result of the combined efforts of each and every employee. All individuals want to do a good job, and if they are provided with the proper environment, they will do so. People rarely succeed at anything unless they enjoy doing it. The Bank has always viewed Human Resource (HR) Development as a critical activity, as it plays a very important role in culture building and gives an impetus to the effort put in achieving business goals more efficiently. A seminar was conducted in January 1999 which enabled the Bank to establish clearly the link between businesses strategy and human resource strategy. Accordingly, different kinds of mindsets were worked out to ascertain there requirement in the staff in the three main lines of business corporate banking, retail banking and treasury operations. In the foreign banks and private sector banks, however, there has been growing recruitment amongst the officers' cadre with a decline in the recruitment of clerical and subordinate staff. Private Banks started the decade with 24.5% of staff as officers, 54.8% as clerical, and 20.7% as subordinate staff. By the end of the decade 36.2% of the staff were officers, 45.9%were clerical, and 17.9% were subordinate staff. A new organizational structure effective April 1, 1999 was implemented successfully with the µchange agent role played by the HR Department. Three different job profiles viz., customer service and cross selling of products, back office operations and marketing and sales emerged after the new organizational structure was put in place. The recruitment process has been fine-tuned through specially devised processes that identify an individual‟s degree of customer orientation ± the principal trait needed in the banking business. New recruits have been provided training in skill up gradation and team building and development of an appropriate mindset for better conduct of banking business. Training programs of shorter duration were designed for the existing staff, with specific focus on product information, customer service, cross selling of products and operational excellence. The promotion process has been designed on the principles of openness and transparency. Career progression is based on performance of employees being above an acceptable level with emphasize on those with high business drive and potential. These exercises are carried out by the Career Development Centre, which offers a comprehensive competency building program. This process has been followed for the last 5 years and has been perceived as being fair and credible by the employee. 59
A high level of performance is rewarded by a system of performance bonus. The ratio of variable bonus to fixed salary is fairly high to attract and retain the best talent in the Bank. In the private and foreign banks there are larger pay differentials, fewer rewards for tenure, and individual incentives are high. Further, to ensure that the Bank does not lose high performers and to increase the motivation levels and instil a feeling of ownership, the Bank has introduced an Employee Stock Option Scheme (the Scheme). The first grant of stock options under the Scheme was made during the year. The total number of staff of the Bank increased from 891 as on March 31, 1999 to1, 344 as on March 31, 2000. On an average, an employee received 37 hours of training during the year. The Bank conducted 34 internal and 67 external training programs involving 658 and 198 employees respectively. Further, 22 employees were a part of overseas training programs.
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CASE STUDY OF HUMAN RESOURCE MANAGEMENT IN ICICI BANK
Case Details: Case Code
:
HROB157
Case Length
:
08 Pages
Period
:
2000-2013
Organization
:
ICICI Bank
Pub Date
:
2013
Teaching Note
:
Not Available
Countries
:
India
Industry
:
Banking and Finance
Themes: Human Resources Management/ Leadership Development/ Mentoring
Issues: Critically analyze talent management strategies at ICICI Bank. Understand the mentoring process adopted by Kamath to groom young employees at the bank. Understand the need to set up a formal leadership development process at the bank. Understand the issues and challenges faced by the mentors while mentoring employees.
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Key Words: ICICI Bank, Talent management, Leadership talent, Mentoring, Nurturing talent, Leadership
development,
Performance
appraisal,
Human
capital,
Talent
assessment, Leadership pipeline, Entrepreneur model, Talent screening, 360degree performance management process, ICICI DNA, Talent retention
"Leadership is the ability to handle the job at the next level with comfort. Being able to perform your future role in the present. It is especially important in an industry like ours where people are our most important asset, and we depend on people for growth. When your business focuses on growth, grooming talent is crucial". - Chanda Kochhar, Chairman and MD, ICICI Bank Ltd., in 2010.
"The bank's leadership in the industry is exemplary. But nothing to compare its ability to spot, groom, and deploy leaders in-house". - Indrajit Gupta, editor, Forbes India & George Smith Alexander, reporter at Bloomberg, in 2008.
Introduction: ICICI Bank Ltd. (ICICI Bank), the India-based financial banking institution, began a process of identifying and nurturing talent in the 1980s. This practice paid rich dividends, with ICICI Bank becoming known as a powerhouse of leadership talent. Ever since N Vaghul (Vaghul) became the chairman and MD of Industrial Credit and Investment Corporation of India Limited (ICICI) in 1985, the bank had fostered a culture of nurturing young talent. Vaghul brought in a fresh and different approach to working in the organization. He involved younger people at the bank in big projects unlike CEOs of other organizations who preferred to pick senior level managers.
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This was a bid to develop a talent pool at the bank. Vaghul‟s way of empowering young people, nurturing talent, and developing a leadership pipeline became part of the bank‟s culture and was carried forward by former CEO and MD, KV Kamath (Kamath) and present CEO and MD, Chanda Kochhar (Kochhar).
Kamath who joined ICICI Bank as CEO and MD in 1996, created an incredible talent for spotting employees with leadership potential. He was instrumental in grooming several people who later took up key positions at the bank. Kamath nurtured people with potential leadership at the bank by moving them from one assignment to another and making them take up different leadership roles and serving the bank. Commenting on Kamath‟s ability to nurture talent, Kalpana Morparia (Morparia), former joint managing director, ICICI Bank, said, "Mr Kamath has an amazing ability to pick a leader and identify potential way beyond what the people believed in. Less than 20-25% of us had any clue where we were headed in our careers." Kamath‟s vision was to enable ICICI Bank to surge ahead and capture a vital share of the market. He planned to create leaders within the organization who could foresee opportunities ahead of others.
The mentoring process started with picking young employees who had joined the bank as management trainees and giving them hard-to-achieve targets to test their potential. Employees passing the test were promoted to lead senior-level positions.
The success of the mentoring process led to the bank institutionalizing a formal leadership development process that identified talented employees through a performance appraisal system after which they were assessed for future leadership roles.
Experts felt that the bank's successful transformation from a lending financial institution to a retail powerhouse could be attributed to its mentoring and leadership development process.
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Background Note: ICICI Bank was founded in 1994 as a subsidiary of an Indian financial institution, the Industrial Credit and Investment Corporation of India Limited (ICICI). ICICI through its subsidiary, ICICI Bank, transformed itself from a developmental financial institution offering services such as project finance into a diversified financial services group offering an array of products and services directly as well as through subsidiaries and affiliates such as ICICI Bank. In 1999, ICICI became the first bank or financial institution from Asia barring Japan to be listed on the New York Stock Exchange. In 2000, ICICI and ICICI Bank merged to benefit the shareholders of ICICI Bank through a large capital base and scale of operations.
In October 2001, the Board of Directors at ICICI and ICICI Bank approved the merger of ICICI with ICICI Bank and two of ICICI's wholly-owned retail finance subsidiaries – ICICI Personal Financial Services Limited and ICICI Capital Services Limited.
ICICI Bank made phenomenal progress in a short period under the leadership of Kamath, who joined ICICI Ltd. as its managing director and CEO in its embryonic stage in 1996. It was at this time that the preliminary results of the liberalization efforts that India had initiated in 1991 began to show.
In the changing environment, ICICI transformed itself from a traditional development finance institution to a customer-centric private-sector bank. It was not just merely a growth story of a corporate but the success of a clearly envisaged leadership strategy adopted by Kamath for the growth and development of the bank leveraging human capital and technology. In January 2002, the merger was approved by shareholders of ICICI and ICICI Bank. In March 2002, the merger was approved by the Gujarat High Court and in April 2002 by the High Court of Judicature at Mumbai and the Reserve Bank of India. Subsequently, ICICI Group's finance and banking operations - wholesale as well as retail - were integrated into a single entity. It was reported that Kamath's ability to sense potential in the retail business ahead of others and inspire his people to go for it was a major contributor to ICICI's success. From 2001 to 2006, ICICI Bank bagged The Asian Banker's „Best Retail Bank in India' award.
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Over the years, ICICI Bank adopted smart initiatives in the rapidly growing financial sector of India and created a state-of-the-art banking infrastructure in its branches across India. The main strengths of ICICI Bank were its talent pool, complete product suite, large capital base, extensive customer relationship, strong brand franchise, technology-enabled distribution architecture, and universal banking presence. Though ICICI Bank was mainly involved in retail banking, it ventured into other products such as insurance, corporate banking, venture capital, etc.
In 2007, ICICI Bank created history by raising US$ 5 billion in the largest-ever public offering in India and emerged as a valuable financial organization. In 2009, Kamath stepped down from the post of CEO and MD of ICICI Bank in favor of Kochhar.
For the FY ended March 31, 2012, ICICI Bank had assets worth US$ 83.6 billion, which made it the second largest bank in India.
Nurturing Talent in its Initial Years: ICICI had a history of identifying and nurturing young talent right from the time SS Nadkarni (Nadkarni) was chairman of ICICI. Kamath himself was picked by Nadkarni soon after he joined ICICI in 1971 after completing his post-graduation from the Indian Institute of Management, Ahmedabad. Commenting on Nadkarni's way of nurturing talent, Kamath, said, "He taught me initial skills; he had this ability to test you by giving increasingly complex assignments. If you had any intelligence you quickly made out that he was actually testing you to see if you are fit enough to go on to the next rung."...
Mentoring - The Kamath Way: One of the first things Kamath felt he had to do on returning to ICICI after an eight-year stint with the Asian Development Bank in 1995 was to create a talent pool in a bid to transform the government promoted project finance institution into a universal bank. During this time, the bank also faced the problem of young 65
employees leaving the bank for better options. This prompted Kamath to devise the parking lot theory...
A Formal Leadership Development Process: Soon after ICICI‟s merger with ICICI Bank in 2000, Morparia and ICICI HR head K Ramkumar (Ramkumar) felt that the bank should make the transition to a formal system of leadership development rather than depending on Kamath‟s personal genius. This, they felt, was required as the bank was scaling up from a 1,000 member organization to a strong team of 7000 employees. Moreover, they felt that the previous process of grooming leaders which had been heavily dependent on the board member‟s contribution had started looking obsolete...
Talent Screening and Assessment: As a first step of the formal leadership development process, the bank institutionalized a talent screening process. With the number of employees rising and the bank expanding to various national and international markets, a talent screening had to be put in place, the bank felt. Since the selection of potential leaders was done by the bank, the process started with creating a list of talent which was empanelled as leadership talent. For instance, out of 15000 oddmangers, the bank chose 2000 people as leadership talent...
Grooming Successors: The bank also used the leadership development process to groom successors at the bank. Moreover, succession planning was essential as all the topnotch people such as Lalita Gupte and Morparia were retiring in October 2006 and in 2007, respectively...
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Other Initiatives: While the formal leadership development system identified and nurtured young professionals at the bank, ICICI Bank also took some initiatives to nurture leaders at the senior management levels. For instance, in 2003, ICICI Bank came up with a new leadership program called „Mentoring the Mentors‟ for professionals at the senior management level. The program aimed to hone the mentoring abilities of professionals. The bank also identified some corporate professionals from companies across other sectors for this initiative. These professionals conducted sessions on effective mentoring for the senior management level at the bank...
Results: According to experts, ICICI Bank‟s focus on nurturing young leaders helped the bank move ahead of others in the Indian banking sector. Moreover, they felt that the leadership development process had also helped the bank survive through the crisis. For instance, in mid-2008, the global economic environment became very challenging due to the global financial crisis. ICICI Bank also faced the heat due to its heavy global exposure. Moreover, a rumor that began in Gujarat that ICICI Bank would go bankrupt spread like wildfire...
Looking Ahead: Experts felt that though ICICI Bank had a depth of talent, it also faced the risk of becoming a poacher‟s paradise. According to Kochhar, "When an organization grows at 35-40 per cent per annum for 10 years and adds 10 new businesses during that period, young professionals get the kind of exposure they would not have got anywhere else. We have groomed people to build and run businesses like insurance, securities, and retail. So if other players are looking to grow who would they pick? The best person would be someone who has already run the business."...
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Exhibits: Exhibit I: ICICI's Profit and Loss Statement Exhibit II (A): Role of Top Management in Mentoring Exhibit II (B): Employees Mentored by Kamath Exhibit III: ICICI Bank's Talent Management Components Exhibit IV: Women Leaders at ICICI Bank Exhibit V: ICICI DNA Anchors Exhibit VI: Kochhar's Career Path to the CEO
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Comparative Analysis:
ICICI is private global bank its HR practices are totally different SBI no.1 public sector bank of India. Package given by ICICI is more enough than salaries provided by SBI. Incentives and benefit policies of ICICI and SBI is totally different. Selection process of ICICI is very lengthy and cost consuming.
Selection process of SBI is two levels: PO level Administrative Officers. The training and development policies of ICICI are much better than SBI. There is not much emphasis on training and development at SBI.
RECOMMENDATIONS: Recommendations for ICICI: Simplify its recruitment and selection process. Reduce salaries of employee and increase the incentives and benefits part in their compensation. Recommendations for SBI: Competition in banking sector increases due to private banks. Private sector banks giving higher salaries to attract the talent. Thus it is necessary for SBI to increase its salaries. Give more emphasis on training and development of employees. Increase motivation by giving extra benefits.
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SUGGESTIONS:
Based on findings emerged from the analysis of the data collected through questionnaires and interacting with the management officials of the public sector banks, the following suggestions are offered to improve the HRM as prevalent in banks. 1. An awareness is to be created at all levels that HRM is everybody‟s business and systems for creating such awareness are to be developed.
2. Banks should establish a high power HRM Committee at the corporate level. Alternatives, the form and the scope of the Training Advisory Committee will meet atleast once in 3 months. HRM task force at various levels may also be set up to implement various HRM measures as are initiated and approved by the HRM Committee.
3. All efforts must be continuously mode by banks to develop an overall HRM culture and climate at all levels. It is very important that line managers and other functionaries take appraisals of employees as an important part of their portfolio and do not consider it to be the job of either personnel or HRM alone at the corporate level.
4. The HRM surveys should be carried out in the banks every 3 years and findings of these surveys should be interpreted and suitable HRM interventions should be made. The suggestions emerging from these surveys need to be examined and followed up seriously.
5. Scope of employee suggestion schemes needs to be expanded to make it more participative and effective practical and useful suggestions should be encouraged.
6. Visiting faculty(with some behavioural science background) should be made to visit all the branches over a period of time, by giving advance notice to the branches and inviting questions and suggestions about the day-to-day problems. These could be discussed in a brainstorming session at the branches with a view to
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letting out pent up feelings if not for immediately solving them. This should be followed up suitable communication from controllers.
7. Tasks/assignments/paper presentation to individuals/group of participants should make as a regular feature experience sharing among participants to facilitate meaningful interaction should be provided for. To the extent feasible, structured and unstructured role plays in training sessions should be introduced.
8. Welfare measures particularly relation to hospitalization scheme, canteen facilities at branches, scholarships for children of staff holiday homes and library facilities at branches need reexamination and whenever feasible, these and other such welfare measures may be suitably modified for the benefit of staff.
9. More important personnal policies like transfer and promotion are to be viewed periodically transfer placement policy should be implemented in fairness with minimum adhocism and undue favouritism from either side. This will instill confidence amongst all.
10. The system of reward and punishment should be made more clear and transparent while there should be an institutionalized system for calling periodical information, good work done by staff for prompt appreciations of their deeds and punishment to the erring employees should be quick and proper to serve as a deterrent to others.
11. A thorough and scientific screening of the participants should be done before selecting employees for training so that the right type of personnel are selected for the right type of training.
12. The development oriented PAS should be integrated with the entire HRM system of the organization. The appraisal data should be used not only for promotion decisions but also identification of staff training needs, job placements, job enrichment and enlargement, talent spotting and career planning.
13. A basic commitment and willingness on the part of the management and employees along with sustained planning efforts are required for the entry of 71
computer in Indian banks. Bank managers should be prepared to manage the people so that right type of data can be used in the computer at the right time. Commitment of all the section of employees to computerization should be evolved to cover various sections of employees. The executives and administrators must make use of Computer Based Management Information System(CBMIS) to enhance the quality of their decisions.
14. New manual for computer audit should be prepared and the access to software, kind of access and the risks involved are required to be assessed periodically, so that of computerized branches serve the purpose of an audit and does not become a routine.
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CONCLUSION: The face of banking is changing rapidly. Competition is going to be tough and with human resources management of public and sector private banks. Banks in India will have to benchmark themselves against the best in the world. These are some of the issues that need to be addressed if banks are to succeed, not just survive, in the changing milieu. Taking the banking industry to the heights of international excellence will require a combination of new technologies, better processes of credit and risk appraisal, treasury management, product diversification, internal control and external regulations and not the least, human resources. A high level of performance is rewarded by a system of performance bonus. The ratio of variable bonus to fixed salary is finally high to attract and retain the best talent in the bank. The scope of public sector and private bank have great human resource management is different but the competition which have various system. Specializing in various human resource management tasks and functional leadership engaging in strategic decision-making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have established programs of study dedicated explicitly to the duties of the function.
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BIBLIOGRAPHY REFERENCE BOOKS: Human Resource Management in Public and Private Sector Banks H.R Machiraju. “Indian Financial Systems”, UBS Publishers and Distributors LTD., India. Principles of Banking – Macmillum. Joy, O.M.: Introduction to Financial Management (Madras: Institute for Financial Management and Research., 1978).
WEBLIOGRAPHY SOURCES: www.google.com www.googleimages,com www.yahoo.com www.yahooimages.com www.wikipedia.com
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