hrm in bank

7/30/2019 hrm in bank

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EXECUTIVE SUMMARY

Fast global & technological developments have made todays business environment highly

uncertain & even chaotic. Organizations are seeking newer ways to promote their adaptability to

the complexities of the changed scenario so as to survive & prosper. Globally organizations are

striving to realize competitive success through strategic management of human resources. Thus,

people management has never been more important than it is today. Therefore new themes have

emerged in the process, replacing some of the old ones. The new thinking in this regard is

referred to as Human Resource Management (HRM), which carries a more proactive & strategic

connotation.

The development of employee commitment through employee involvement & empowerment is

one of the key objectives of any HRM discourse. The complex business objectives in todays

business environment are difficult to realize without developing highly committed & motivated

employees who would strive to contribute to organizational goals. That is why, human resource

issues are no more the preserves of personnel specialists; rather line & general managers are

being increasingly involved in handling key HR issues & in evolving, shaping & managing

human resource strategies & policies. These developments have given a far greater recognition to

the HR function in organizational decision- making processes.

Human resource is one of the natural resources of any countrys economy. It is the wealth of the

country. In the context of banking, human resource is of greater importance. The deployment of

human resource through proper & efficient selection, training & development, is called Human

Resource Management.

The success of any bank largely depends on efficient human resource management, apart from

operations, marketing & sales, the HR department manages all the efficient people working inoperations & marketing divisions in an organization.

HYPOTHESIS

GROWTH OF BANKING SECTOR DEPENDS ON APPROPRIATE HRM POLICIES.


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To analyze this hypothesis I have included a case study on STATE BANK OF INDIA in which I

have put forth the range of practices executed by the HR department. I have even interviewed

Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager of HDFC Bank,

thereby representing the two major sectors ofBANKS, i.e., PUBLIC SECTOR & PRIVATE

SECTOR.


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INTRODUCTION

The concept of human resource management is increasingly becoming a most vital function of a

modern manager. Human resource management is the management of employees knowledge,

abilities, talents, aptitudes, creative abilities, etc.

Human resources take active role in the modern economic scenario of any country. The abundant

physical resources alone cannot benefit the growth of the country without human resource

component, which transforms physical resources into productive resources. In fact, the

differences in the level of economic development of the countries are largely a reflection of the

differences in quality of their human resources. The key element in this proposition is that the

values, attitudes, general orientation and quality of people of a country that determines its

economic development.

People are our most valuable asset is a clich which is no member of any management team

would disagree with.

The concept of HRM assumes immense importance as HRM plays vital role in meeting the

challenging requirements of highly skilled & component human resources due to globalization.

DEFINITION

Human resource management is planning, organizing, directing & controlling of the

procurement, development, compensation, integration, maintenance & separation of human

resources to the end that individual, organizational and social objectives are accomplished.

MEANING

Human resources management involves all management decisions & practices that directly affect

or influence people or human resources, who work for the organization. In recent years,

increased attention has been devoted to how organizations manage human resources. This

increased attention comes from the realization that an organizations employees enable an

organization to achieve its goals, & the management of these human resources is critical to the

success of the organization.


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HRM is management function that helps managers to recruit, select, train & develop members

for an organization. Obviously HRM is concerned with the peoples dimensions in organizations.

HRM refers to set of programs, functions & activities designed & carried out.

Human resource management means employing people, developing their resources, utilizing,

maintaining & compensating their services in consonance with the job & organizational

requirements.

CORE ELEMENTS OF HRM

People: Organizations mean people. It is the people who staff & manage organizations.

Management: HRM involves application of management functions & principles foracquisitioning, developing, maintaining & remunerating employees in organizations.

Integration & Consistency: Decisions regarding people must be integrated & consistent.

Influence: Decisions must influence the effectiveness of organization resulting intobetterment of services to customers in the form of high quality products supplied at

reasonable costs.


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Applicability: HRM principles are applicable to business as well as non-businessorganizations too, such as education, health recreation & the like.

SCOPE

From entry to the exit of an employee in the organization;

Scope of HRM can be described based on the following activities of HRM. Based on these

activities we can summarize the scope of HRM into 7 different categories as mentioned below

after the activities. Lets have a look at both of them

HRM Activities:-

1. HR Planning2. Job Analysis3. Job Design4. Recruitment & Selection5. Orientation & Placement6. Training & Development7. Performance Appraisals8. Job Evaluation9. Employee & Executive Remuneration10.Motivation11.Communication12.Welfare


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13.Safety & Health14.Industrial Relations

7 Categories of Scope of HRM:

1. Introduction to HRM2. Employee Hiring3. Employee & Executive remuneration4. Employee Motivation5. Employee Maintenance6. Industrial Relations7. Prospects of HRM

SCOPE OF HRM


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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

There are 2 broad functions of HRM. They are:

I. Managerial FunctionsII. Operational Functions

Managerial Functions:

Managerial functions of Personnel management include planning, organizing, directing, co-

ordinating & controlling.

Planning:It is the charting out of programmes & changes in advance in the achievement of

organizational goals. Hence, it involves planning of human resources requirements,

recruitment, selection, training etc. It also involves forecasting of personnel needs,

HUMAN

RESOURCE

MANAGEMENT

NATURE OF

HRM

EMPLOYEE

HIRING

EMPLOYEE &

EXECUTIVE

REMUNERATION

EMPLOYEE

MOTIVATION

EMPLOYEE

MAINTENANCE

INDUSTRIAL

RELATIONS

PROSPECTS

OF HRM


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changing values, attitudes & behavior of their employees & their impact on the

organization.

Organizing:In the words of J. C. Massie, an organization is a structure & process by which co -

operative groups of human beings allocated its tasks among its members, identifies

relationships & integrates its activities towards a common objective. Given the complex

relationships that exist between specialized departments & the general departments, many

top managers seek the advice of personnel manager. In this manner, the organization

establishes relationships among the employees so that they can together contribute to the

achievement of organizational goals.

Directing:After planning & organizing comes the execution of plan. The willing & effective

cooperation of employees towards the achievement of organizations goals has to be

brought about by proper direction. Identifying & utilizing maximum potentials of people

is possible through motivation & command. Direction, therefore, is an important

managerial function in ensuring optimum employee contribution.

Co-ordinating:It is the task of matrixing various employees efforts to ensure successful goal

achievement. The Personnel manager co-ordinates various managers at different levels as

far as the personnel functions are concerned.

Controlling:After planning, organizing, directing & co-ordinating, the various activities, the

performance is to be verified in order to know, at various points of time, whether the

activities are performed as per plans & directions. It involves checking, verifying &

comparing actual with the plans, identification of deviations if any & correcting the

deviations. Auditing training programmes, analyzing labour turnover, overseeing morale


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surveys, conducting exit interviews are some of the controlling functions of personnel

management.

Operative Functions:

The operative functions of HRM relate to employment, development, compensation & relations.

All these are interacted by managerial functions. Also, they are to be performed in conjunction

with management functions.


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ORGANISATIONAL DESIGN----JOB DESIGN----JOB ANALYSIS

Employment:Employment function is securing & employing the people having required level of

human resources essential for achieving the organizational objectives. It involves job

analysis, human resources planning, recruitment, selection, placement, induction &

handling internal mobility.

Job Analysis:

Human Resource Planning Recruitment Selection

Induction Placement

EMPLOYMENT

Performance Appraisal Training Management Development Career Planning & Development Organisation Change Organisation Development

HUMANRESOURCE

DEVELOPMENT

Job Evaluation Wage & Salary Administration Fringe Benefits

COMPENSATIONMANAGEMENT

Motivation Morale

Job Satisfaction Communication Grievance & Disciplinary Procedures Quality of Work Life & Quality Circles

HUMANRELATIONS


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It is the study & collection of data relating to the operations & responsibilities of a

specific job. It includes:

a. Collection of data & information & facts relating to the various aspects of jobsincluding men, machines & materials.

b. Drawing up of job description, job specification, job requirements &employee specification with which nature, level & quantum human resources

can be finalized.

c. Providing the guidelines, plans & the basis for job design & for all operativefunctions of HRM.

Human Resource Planning:This is the process which assures the organization that it will have adequate number of

qualified persons, at requisite times, performing in a way to satisfy the needs of the

organization & also provide satisfaction to the individual employee, so employed.

The process involves:

a. Estimating the present & future requirements of human resources based onobjectives & long range plans of the organization.

b. Calculation of net human resource requirements based on the presentavailability of human resources.

c. Taking suitable steps to identify, mould, change & develop the strength ofexisting employees so as to meet the future requirements.

d. Preparation of action plans to acquire the balance human resources fromoutside the organization & to develop the existing employees.

Recruitment:It is the process of searching for future employees (requirement) & ensuring they apply

for jobs in the organization.

It involves:

a. Identification of existing sources of candidates & developing them.b. Seeking out & identifying new sources of applicants.c. Motivating the right type of candidates to apply for jobs in the organization.d. Ensuring a healthy balance between internal & external sources.

Selection:


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It is the process of ascertaining the qualifications, experience, skill, knowledge, etc. of an

applicant to ascertain his/her suitability for the job applied.

This includes:

a. Developing application blanks.b. Creating & developing valid & reliable testing techniques.c. Formulating interviewing techniques.d. Checking of references.e. Setting up for medical examination policy & procedure.f. Line Managers to be involved in the decision making.g. Sending letters of appointment.h. Employing the selected candidates, when he reports for duty.

Placement:It is a process of allotting to the selected candidate the most suitable job, as per the job

requirements & employee specifications.

This function includes:

a. Counselling the concerned managers regarding the placements.b. Overseeing the follow-up studies, employee performance appraisal to monitor

employee adjustment to the job, in the coming days.

c. Correcting wrong/misjudged placements, if any. Induction & Orientation:

These are procedures by which a new employee is rehabilitated in the new surroundings

& introduced to the practices, procedures, policies, people, etc. of the organization.

It includes:

a. Familiarizing the employee with company philosophy, objectives, policies,career planning & development, company product, market share, history,

culture, etc.

b. Introduce new employee to the peoplehis colleagues, supervisors &subordinates.

c. Mould the employees by orientation methods to the new working conditions.

Human Resource Development:


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This process involves improving, moulding, & developing the skills, knowledge,

creativity, attitude, aptitude, values, commitment, etc. based on the present & future job

& company requirements.

Performance Appraisal:It is the continuous & systematic evaluation of individual employees with respect to their

performance & their potential for future development.

It includes:

a.Enunciating policies, procedures & techniques.b.Assisting functional managers.

c.Reviewing & summarizing reports.d.Evaluating the effectiveness of various programmes.

Training:It is the process of transmitting the employees the technical & operating skills &

knowledge.

It includes:

a. Identification of training needs of the individuals & for the organisation.b. Developing appropriate training programmes.c. Assissting & advising the management in the conduct oftraining programmes.d. Transmitting requisite job skills & job knowledge to the employees.e. Asses the effectiveness of the training programmes.

Management Development:


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It is the process of designing & conducting appropriate executive development

programmes so as to develop the managerial & human relations skills of the employees.

It includes:

a. Identification of the areas in which management development is needed.b. Conducting development programmes.c. Motivating executives/managers.d. Designing special development programmes/ assessment procedures for

promotions.

e. Utilising the services of specialistsboth internal & external for development&/or Institutional (external) development programmes.

f. Evaluating the effectiveness of executive development programmes. Career Planning & Development:

It is the planning of ones career & implementation of career palns by means of

education, training, job search & acquiring of work experience.

It includes:

a. Internal mobilityvertical & horizontal transfers, promotions & demotion.b. Transferprocess of placing employees in the same level jobs where they can

be utilised more effectively as per the needs of the organisation. This also

meansdeveloping transfer policies, offering assistance & guidance to

employees under transfer orders & evaluating transfer policy periodically.

c. Promotionit deals with the upward assignment of employees to occupyhigher positions (with better status & pay) in consonance with resoueces of

employees & job requirement. The department must ensure that:

i.Equitable, fair & consistent promotions are formulated & administered.ii.Managers & employees are given assistance & guidance on the subject

of promotion.

iii.Execution of promotional policies are as per policies & procedures.d.Demotionis the downward assignment of an employee in an organisation.

The department must ensure that:

i.Equitable, fair & consistent demotion policies are drawn up.ii.Assisting & advising employees regarding demotions.


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iii.Ensure fair implementation of demotion policies & procedures. Organisational Development:

The planned process drawn up to improve organisational effectiveness through changes

in individual & group behaviour, culture & systems of the organisationdrawing models

from applied behavioural science.

Human Relations:Administering various human resources policies like employment development &

compensation & interactions among the employees on one hand & employees & the

management on the other, create a sense of working relationships between workers &

management & trade unions.

Basically they are all interactions between human beings.

Human relations, is therefore, is an important area in management which integrates

people into worksituations in a way that motivates people to work together with

economic, psychological & social satisfaction thereby increasingtheir productivity. Hence

Human Resources Management functions will centre around:

a. Understanding perception, personality, learning, intra & inter personal relations, inter& intra group relations.

b. Motivating all employees.c. Promoting employee morale.d. Developing communication skills.e. Developing leadership skills.f. Redressing satisfactorily through a well defined grievance procedure.g. Handling disciplinary cases by established disciplinary procedures & in all fairness.h. Providing adequate counselling to solve employees personal, work & family

problems, thereby releasing their stress & strain.


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FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives Legal Compliance Benefits

Union Management Relations

Organisational Objectives Human Resource Planning

Employee Relations

Recruitment & Selection

Training & DevelopmentPerformance Appraisals

Placement & Orientation

Employee Assessment

Functional Objectives Performance Appraisals

Placement & OrientationEmployee Assessment

Personal Objectives Training & DevelopmentPerformance Appraisals

Placement & Orientation

CompensationEmployee Assessment


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OBJECTIVES

Societal Objectives: to be ethically & socially responsible to the needs & challenges ofthe society while minimising the negative impact ofsuch demands upon the organisation.

Organisational Objectives: To recognise the role of HRM in bringing aboutorganisational effectiveness. HRM is only means to achieve & assist the organisation

with its primary objectives.

Functional Objectives: To maintain departments contribution & level of services at alevel appropriate to the organisations needs.

Personal Objectives: To assist employees in achieving their personal goals, at least in sofar as these goals enhance the individuals contribution to the organisation. This is

necessary to maintain employee performance & satisfaction for the purpose of

maintaining, retaining & motivating the employees in the organisation.

Objectives of Personnel Management are determined by organisational objectives & individual

& social goals. The main objectives of Human Resource Management are drawn from the

organisational objectives. The other objectives of HRM are to take care of the needs, aspirations,

dignity of the individual employees & at the same time keeping in mind the socio-economic

problems of the community & the country.

The objectives of HRM are as follows:


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i. To create & utilise capable & motivated workforce to achieve the basic organisationalgoals.

ii. To establish & maintain proper & sound organisational structure & healthy workingrelationships among all its employees.

iii. To ensure the integration of individual groups goals with those of the organisation.iv. To create facilities for individuals & groups to develop so as to be in tune with the growth

of the organisation.

v. Proper & optimum utilisation of human resources.vi. To ensure adequate & equitable wages, incentives & other benefits so that satisfied

individuals & groups are motivated to take on challenges.

vii. To maintain high employee morale.viii. To continuously upgrade the skills & knowledge of the employees, by training &

development programmes.

ix. To ensure opportunity for participation in management to the extent possible.x. To provide acceptable & effective leadership.

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 & cooperatives are largely on the basis of

ownership pattern. It is also well known that the business mix, delivery channels & IT strategies

of these organisations vary substantially. What is little known but of greater importance is


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thateach of these banks follow very distinct HR practices which have contributed, substantially,

to the business processes.

HRM in Cooperative Banks

It is sad that the HR policies of cooperative banks are totally dominated by the Registrar of

Cooperatives. This is, perhaps, one reason why the cooperatives are unable to improve

themselves.

HRM in Regional Rural Banks (RRBs)

As regards RRBs, most of them adopt the HR policies of sponsor banks, which are not

appropriate for their special nature.

HRM 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 & it is hoped that

these banks will fast catch up with others. It may be recalled that, in a controlled environment &

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 &

providing them across the country.

HRM in Private Banks & Foreign Banks

The HR function as practiced by private & foreign banks is effectively involved in the

identification of specific skills that each job warrants & 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 & designations.

There is a great energy spent in keeping the turnover low & offering appropriate training inputs.

Possibly there are as many pay structures as there are employees. More importantly, HRM has a

role in monitoring & mentoring the employee. There are no routine transfers. Rather people are

recruited in different geographical locations & different levels. Technology has helped in

centralizing the back office & other functions such that service can be provided from a distance.


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These institutions adopt a proactive performance appraisal system but still short of 360 Degree

appraisals. Their training process is concerned with both skill building & 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.

HRM in Public Sector Unit Banks (PSU Banks)

In the case4 of PSU Banks the recruitment process is annual & large scale. People are recruited

at the lowest grade & promoted I due course.this makes the career path of each employee the

responsibility of the organisation. This also underlies a belief that anyone can occupy any desk.

In such a system specialisation is the loser. Recruitment at higher levels is a recent phenomenon

& more an exception than rule. Pay packets are uniform for a grade/level with annual increments

& uniform perquisites. Increments are earned automatically.

Transfers are not driven by business requirements but a matter of routine. Vacancies get created

as & when people move up. It is not uncommon to se new departments spring up just to allow

promotions. In a way such a move is justified as salary is linked to grades & not performance.

The concept of job rotation is practiced with great conviction. As regard leave it is seen that

modern business organisations, driven by work life balance issues & operational risk ensure

that certain annual leave is mandatory. In the case of PSU Banks, the compulsory leave system

has not yet taken root. In the circumstances an important task at hand is training the staff

member, who, on accont of age profile is not comfortable working in an IT environment. HRM

should also take immediate steps to improve productivity. There is a simultaneous need to

balance the demand of IT savvy youngsters joining the organisation who ask for high salaries.

PSU Banks are not able to offer market driven salary. Given that banking business & the

business of Government are distinct, there is, in the case of PSU Banks, an urgent need that

salaries are not limited by what is paid in the ministry but unshackled. Till that happens, HRMshould, innovatively tackle the issue.

Responsibilities Of The Human Resource Management Department In Banks:

Role:


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The role of the Human Resource Department is to create the climate & conditions in which

management throughout the Bank will be enabled to optimise the individual & collective

contribution of all employees to the short & long-term success of the Bank.

Responsibilities:

To be the principal sponsor & guardian of HR policies in the Bank. To propose & obtain agreement on changes to these policies from time to time & to ensure

that policies which have been agreed are being implemented throughout the Bank.

To contribute fully to the task of meeting the business challenges whichthe bank has toface by supporting Branch/Unit Managers in continuously developingthe potential of

employees & in creating conditions in which all the employees are motivated to meet the

objectives of the Bank.

To continuously monitor the Banks strategies to ensure that HR policies are approriate &that employee numbers & skills are fully supportive of such strategies.

To deliver a full range of personnel services in support of line management. Theseservices include manpower planning, recruitment/transfer, remuneration, training &

employee welfare.

To support line management in their day-to-day management of the workforce byproviding advice & consultancy on personnel & performance management issues.

EMPLOYEE RELATIONS IN BANKS


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The banking sector has been characterized by apparently harmonious industrial relations & has

not suffered from the British Diseases of industrial action & demarcation issues associated

with parts of manufacturing industry (e.g. Batstone, 1984). Banks have promoted unitarism (Fox,

1966) encouraging an ethos of teamwork, shared interest & loyalty, wanting commitment beyond

the cash nexus. While banks are generally seen as having a passive approach to employee

relations, paternalism did underpin the system & particularly important was the system of

internal promotion supported by an unwritten agreement between the major UK Banks on no

poaching. The internal labour market created two categories of employees: career & non-career

which equated to a male/female divide.

Retail banking is a highly labour intensive industry with labour costs forming 70% of total

operating expenditure & involvement in fund transmissions meant that a majority of clerical

staff have not been used as a means of marketing the banks products nor directly for increasing

business but to process existing accounts. They have been regarded as an overhead rather than a

resource. Until the 1980s, competition between the Banks has been limited, banks operating as

an oligopoly& Governments concern with maintaining economic stability with limits to lending,

& control over interest rates facilitated this. The oligopoly fed through to the management of

staff as national wage bargaining minimized competition for labour. However deregulation led to

the collapse of the national system & a questioning of the old employment practices.

CURRENT CHALLENGES FACED BY BANKS IN HRM

Effective work force:A time-consuming & 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 employer. Banks are keenly interested to

fill up two types of breeds of professionals.

Ones who are outstanding professionals with high job hopping attitudethese are those

who come in-work for some tome & then leave for better prospects. Others are those who


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are keenly picked-up, trained & are 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 & 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 & 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 & money to hire & train the appropriate

workforce for its own operations. This readymade force is often identified &

subsequently picked-up on better terms by others.

Compensation:How much to pay the right employee & how much to the outstanding performer. Banks

have traditionally followed pay scales with predetermined increments, salary slabs,

bonuses & time based fringe benefits like car & house advance, gratuity, pensions, etc.

The situation is not the same anymore. An increment of Rs.500-800 per annum is no

more a source of attraction for a professional anymore. A basic pay with traditional

formulas of linkage with medical & other facilities has no soothing today.

A promise of future growth, learning culture & corporate loyalty is out of dictionary &

does not mean anything to this energetic & 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


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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 preferential department, preferential location,

city of his own choice & 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 employees nativity yet other elements like appointment in the department of

choice & 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.

Morale Boosting:What has long been overlooked is the morale boosting of the employees by the

organizations. Human beings even if satisfied of material wellbeing need to be appraised

& encouraged constantly.

Smart banks have realized this need & 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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TRAINING & DEVELOPMENT

Meaning & Definition:

Training:

Organization & individual should develop & progress simultaneously for their survival &

attainment of mutual goals. So every modern management has to develop the organization

through human resource development. Employee training is the important sub-system of human

resource management. Employee training is a specialized function & is one of the fundamental

operative functions for human resources management.

After an employee is selected, placed & introduced he or she must be provided with training

facilities. Training is the act of increasing the knowledge & skill of an employee for ding a

particular job. Dale S. Beach defines the training as the organized procedure by which people

learn knowledge & skill for a definite purpose.

The training system in the banking industry has a strong structural base. However, in the past the

training activities have been more ritualistic due to absence of a strategic link between training &

human resources development. Today, it is important that the training function is made an


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effective organizational intervention by establishing a clear policy of training & development

within the framework of total human resource development. The training establishments need to

be actively involved in the total training process starting from the identification of the training

needs, evaluation of training effectiveness & the benefits of training to the end-users viz. the

internal & external customers.

The need for training & development is determined by the employees performance deficiency,

computed as follows:

Training & Development Need = Standard PerformanceActual Performance.

We can make a distinction among training, education & development. Training, as was started

earlier, refers to the process of imparting specific skills. Education, on the other hand, is confined

to theoretical learning in the classrooms.

Training & Education Differentiated:

TRAINING EDUCATION

Application oriented Theoretical oriented

Job experience Classroom learning

Specific tasks General concepts

Narrow perspective Broad perspective

Development:

Give a man a fish, &you give him meal. Teach man to fish, & you give him a livelihood.

This ancient Chinese proverb seems to describe the underlying rational of all raining &

development programs. No banking organization can long ignore the training & development

needs of its employees without seriously inhabiting the performance. Even the most careful

selection does not eliminate the needs for training, since people are not molded to specifications

& rarely meet the demands of their jobs adequately.


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This HRM function deals with the overall development of the employees. This includes their

professional & well as their personal development. It is a part of HRM function to identify

opportunities for enhancing the skills of the resources. Promotion is regarded as one of the ways

of recognizing development undertaken by an employee. Development is also largely dependant

on training.

Generally people think that training & development are one & the same, but there are many

differences between them. They are as follows:

TRAINING DEVELOPMENT

Duration:Training courses are designed mostly for short

term.

It involves a broader long term education for a

long term.

Managerial/Operative Personnel:

Training is normally directed at operative

employees & related to technical aspects. It is directed at managerial personnel to acquireconceptual & theoretical knowledge.

Specific/General:

Training is more specific job relatedinformation. It is more general in nature, especially topmanagement level.

Method:

More emphasis on the on the job method. More emphasis on the off the job method.

Cost Involved:

Imparting training is less expensive. Development is more expensive.

Who Imparts:Mostly the supervisors impart training. It is undertaken by supervisors, outside experts


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& self.

Frequency:Less frequent. Mostly at induction & at every

change in job.

More frequent & continuous in nature.

Theoretical/Practical Aspects:

Emphasis is placed on practical or technicalaspects of work.

Emphasis is placed on theoretical & conceptualaspects.

THE TRAINING PROCESS

Organizational Objectives &

Strategies

Assessment of Training

Needs

Establishment of Training

Goals

Devising Training

Programme

Implementation of Training

Programme

Evaluation of Results


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On-the-Job Training Method (OJT):

Majority of industrial training is on the job training type. OJT method is mainly adopted while

orienting new employees, introducing innovations in products and services and in special skills

training. OJT is conducted at the work site and in the context of the job. Often, it is informal, as

when an experienced worker shows a trainee how to perform the job tasks.

It includes job rotation, job coaching, job instruction or training through step-by-step and

committee assignments.

Off-the-Job Training Method:

METHODS & TECHNIQUES OF TRAINING

ON-THE-JOB METHOD OFF-THE-JOB METHOD

JOB ROTATION COACHINGJOB INSRTUCTIONS COMMITTEE

VESTIBULE TRAINING ROLE PLAYING LECTURE METHOD CONFERENCE OR

DISCUSSION PROGRAMMED


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Under this method of training, trainee is separated from the job situation and his attention is

focused upon learning the material related to his future job performance. Since the trainee is not

distracted by the job requirements, he can place his entire concentration on learning the job

rather than spending his time in performing it. There is an opportunity for freedom of expression

for trainees.

DEVELOPMENT IN BANKS

The banks must emphasis on human resource development as one of the critical areas of its

operations. It should redraw its training & development schedules to suit the requirements of the

current emerging scenario. Requisite training should be imparted to various branch level

functionaries as also administrative staff. Besides in-house training the reputed external agencies

should be utilized for human resource development with a view to updating their knowledge &

to keep them abreast of the current banking scenario for meeting the challenges ahead. The

concept of segment specialization may be resorted to in respect of the personnel selected

therefore. It is now thought expedient to plan & strengthen the squad of skilled officers in

various segments as IT, marketing management, risk management, risk based supervisors, law,

security, etc.

The lead bank must play an effective role in improving the work environment & pursuing staff

welfare measures in the form of whole range of financial assistance with reference to various

loans of sorts.

Human resource skills are other areas of challenge. Because of modernization & technological

advancement rigorous training & man power planning are required. In the market scenario

characterized by heightened competition, growing customer needs & technological up gradation,

the bank fine tunes its HT policy to meet its corporate objectives. New training systems have

been developed to impart competencies & a broad range of skills among the employees to

deliver faster & superior service that can delight the customers. The Industrial Relations in the

banks have been harmonious & cordial.


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RECRUITMENT

Meaning and definition:

The human resources are the most important assets of an organization. The success or failure of

an organization is largely dependent on the caliber of the people working therein. Without

positive and creative contributions from people, organizations cannot progress and prosper. In

order to achieve the goals or the activities of an organization, therefore, they need to recruit

people with requisite skills, qualifications and experience. While doing so, they have to keep the

present as well as future requirements of the organization in mind.

Once the required number and kind of human resources are determined, the management has to

find places where the required human resources are/will be available and also find means of

attracting them towards the organization before selecting suitable candidates for jobs.

Recruitment is defined as, A process to discover the sources of man power to meet the

requirements of the staffing schedule and to employ effective measures for attracting that man

power in adequate numbers to facilitate effective selection of an efficient work force.

Objectives of recruitment

Some of the objectives of recruitment are:

To attract people with multi-dimensional skills and experiences that suits the present andfuture organizational strategies

To induct outsiders with a new perspective to lead the company To infuse fresh blood at all levels of the organization To devise methodologies for assessing psychological traitsFactors affecting recruitment:


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RECRUITMENT PROCESS

Process of Recruitment:

To SelectionScreening

Personnel

Planning

Job Analysis Employee

Requisition

Job

Vacancies

Recruitment

Planning

Number

Type

Searching

Activation

Selling

Message

Media

Strategy

Development

Where How

When

Application

Population

Application

Pool

Potential

Hirers

Evaluation &

Control


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Recruitment refers the process of identifying and attracting job seekers so as to build a pool of

qualifies applicants. This process comprises of five interrelated stages, viz,

Planning Strategy development Searching Evaluation and control

The ideal recruitment process is the one which attracts relatively larger number of qualified

applicants who will survive the screening process and accept positions with the organization,

when offered to approach the ideal people, individuals responsible for recruitment process mustknow how many types of employees are needed, where and how to look for individuals with

appropriate qualifications and interests, what inducements to use for various types of applicants

group, how to distinguish applicants who are unqualified from those who have a reasonable

chance of success, and how to evaluate their work.

SELECTION

Definition

Selection is defined as the process of differentiating applicants in order to identify and hire those

with a greater likelihood of success in a job.


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The objective of selection decision is basically picking an applicant from a pool of applicants

who has the appropriate qualifications and competency to do the job.

The selection procedure cannot be effective until and unless-

Requirements of the job to be filled have been clearly specified. Employee specifications (physical, mental, social, behavioral etc) have been clearly

specified.

Candidates for screening have been attracted.Selection process is preferable because:

It is easier for applicant as they can send their applications to a single centralizeddepartment/agency.

It facilitates contacts with applicants because issues pertaining to employment can becleared through one central location.

It helps operating managers to concentrate on their operating responsibilities. This ishelpful during peak operating period.

It can provide for better selection because hiring is done by specialist trained in staffingtechniques.

The applicant is better assured of consideration for a greater variety of jobs. Hiring cost may be cut because duplication of efforts is minimized.

Selection Process:

The selection process consists of the following steps:

1. Application form: Many companies formulate their own style of application formdepending upon the size and nature of business carried on, type and level of the

job etc. Information is generally required on the following items in the form:

personal background, educational attainments, work experience references etc.

2. Written test: Written test is conducted for the qualified candidates after they arescreened on the basis of application form to measure the candidates ability


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towards the job, his aptitude reasoning, knowledge in various disciplines, English

language etc.

3. Preliminary Interview: The next step that tag along the selection procedure is apreliminary interview wherein the applications are scrutinized so as to eliminate

unqualified applications. Preliminary Interviews are short. This interview thus

provides information about the candidate related to the job or personal

specifications.

4. Selection Test: After passing through the interview the next stage that applicanthas to prove himself on are the selection tests. There are different types of

selection tests for different levels of the organization and that too is further

differentiated within different types of organizations. Some of the most common

and well-known tests that an applicant has to go through are;

a. Ability testb. Aptitude testc. Personality tests: Which is common mostly for the higher level of

management are given to measure a prospective employees motivation to

function in a particular working environment.

d. Internal test: to measure an individuals activity preferences.e. Graphology Test: is an art wherein the individuals handwriting is seen

and accordingly his personality traits are derived by the way he writes.

f. Polygraph Test: Are designed to ensure accuracy of the information givenin the applications.

g. Medical Tests: Reveal physical fitness of the candidate.h. Drug test: Help to ensure the presence of illegal or performance-affecting

drugs.

5. References and background checks: Many employer request names, address, andtelephone numbers or references for the purpose of verifying information and,

perhaps, gaining additional background information on an applicant.

6. Selection Decision: After collecting data from all the preceding steps, this is themost crucial step in the entire selection process. The main difference between the

preceding stages and this is that former is used to short list the number of


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candidates and later one is to make a final decision from the pool of individuals

who pass the tests, interviews and reference checks. The view of line manager

will be generally considered in the final selection because it is he/she who is

responsible for the performance of the new employee. The HR manager plays a

crucial role in the final decision.

7. Physical Examination: After the selection decision and before the job offer ismade, the candidate is required to undergo a physical fitness test. The result of the

medical fitness test is recorded in a statement and is preserved in the personal

records. The main objectives of this test are as follows:

To detect if the individual carries any infectious diseases. To determine whether an applicant is physically fit to perform the work. It helps to determine if there are any physical capabilities which

differentiate successful and less successful employees.

Medical check up protects applicants with health defects fromundertaking work that could be detrimental to them or might otherwise

endanger the employers property.

Last, but not the least such examination will protect the employer fromworkers compensation claims that are not valid because the injuries or

illness was present when the employee was hired.

8. Job offer: The next step is selection process is Job offer for those applicants whohad passed the previous stage. Job offer is made through a letter of appointment.

Such a letter usually contains the date by which the appointee must report on

duty. Appointee must be given a reasonable time for reporting because it may be

quite possible that the appointee is employed in some other company or must be

residing in some other city and for such other reasons. Company may also want

the appointee to delay in joining the job because the job may require undergoing

some training program.

Decency demands that rejected applicants must be informed about their non-

selection. These applicants data must be used for future references.


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9. Contract of employment: After the job offer is made and the candidates accept theoffer, certain documents need to be executed by the employer and the candidate.

One such document is Attestation form. This form contains vital details about the

candidate, which are authenticated and attested by him/her, which could be used

for future reference.

Another document is contract of employment. This document contains the terms

and conditions of employment like designation, perks, term of job and so on. The

information written in the contract may vary according to the level of the job.

The main drawback of the contract is that it is difficult to enforce them.

10.Concluding the selection process: The selection process will not end withexecuting the employment contract. The step is reassuring the candidates who

have not been selected. Such candidates must be told that they were not selected,

not because of any serious deficiencies in their personalities, but because their

profiles did not match the requirements of the organization.

11.Evaluation of selection process: The broad test if the effectiveness of the selectionprocess is the quality of the personnel is hired. An organization must have

competent and committed personnel. The selection process, if properly done, will

ensure availability of such employees. Audit must be conducted by the people

who work independent of the HR department.

New methods of selection:

360 degree selection or participative selection: Normally supervisors administer theselection test and interview. They judge the fit between the job and the candidate. But the

employee skills, knowledge and performance affect not only superiors but also

subordinates and the employees of the same level. Hence the organization started

involving the subordinates and the employees of the same level in administrating the

employment tests and interviews. This type of selection program is called 360 degree

program.

Employee leasing: The client company leases employees from a third party, not ontemporary basis but on a full time basis and for long help. An interesting feature is that

the client company need not perform personnel activities such as hiring compensation or


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record keeping. Employees working elsewhere are leased. They are not directly

employed by the company where they are working. Employees not recruited by one

client are sent to another.

Selection by invitation: Management observes the performance of the key executives ofcompetitors. If the performance of the key executives is excellent or the key executives

are the change agents, the management invites them to join the organization by offering

attractive salary and benefits. Thus, the significant performance of the executives forms

basis for selecting them by invitation.

FUTURE OF HRM

If HRM is not to remain more in the realm of rhetoric with wide disparities between theory and

practice, several things need to take place. First, HRM needs to be diffused across industries and

the economy. For this to occur the following conditions need to be satisfied:

HRM should be an essential part of management education and training. From this, twoimportant consequences are likely to follow. HRM is likely to be integrated into

corporate strategies and line managers functions and decisions. This would reduce the

need for HRM specialists, except at the policy level where they will have a greater voice.

Business strategies are then likely to be built less around low cost and low wages, but

around the real sources of competitive advantage such as flexibility, quality and customer

service.

Employment policies which support employment security, without which HRM policies,including training, would have little motivational effect. This does not mean guaranteed

employment, but a policy which treats termination as a last, rather than a first, resort.

Learning from international experiences and diffusing the information can have a


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transforming effect, as was the case when American manufacturing was transformed

through in-depth studies of Japanese manufacturing in the automobile industry.

Substantial investment in people and the willingness of employers to view the benefitsfrom a long-term perspective - a difficult task in a system which is driven by short-term

investor pressure.

CASE STUDY

STATE BANK OF INDIA

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)

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) 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. 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

union 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 staffing that only those officers who had crossed the age of 55 would be granted

VRS.


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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.

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 II). 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.

Analysts felt that SBI would have to take serious steps to reorient its HRD policy to restore

employee confidence and retain its talented personnel. SBI had many strong organizational

strengths and an excellent training system, but due to weak HR policies, it had lost its experts to

its competitors.

THE INTERVIEW

I have interviewed Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager

of HDFC Bank, thereby representing the 2 major sectors of banking, i.e., Public Sector & Private

Sector. The theme of the interview was on how HRM has reacted to the various drivers of

modern banking & how to enhance performance in the fast changing banking sector. The results

of the interview threw up some interesting facets to the HR issues confronting the banks today &


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how the HR departments are coping with it. Hereby showing the main highlights of the

interview.

1. HRM CHALLENGES

When interviewed the two personnel, both of them were of the opinion that the list of HRM

challenges in banks are as shown in the graph.

The biggest HRM challenge is sustaining & increasing the profits of the bank. Following that is improvement in the operational effectiveness of the HR department. The least priority on the challenge list is given to new distribution channels & on

introducing new products & services.

2. THE ROLE OF HRM IN BANKS TODAY

15%

21%

11%13%

26%

6%4% 4%

HRM CHALLENGES

Getting into new Markets/Areas Improving operational effectiveness

Improving product & service quality Deepening gustomer base

Sustaining & increasing profits Complying with regulatory challenges

New distribution channels New products & services


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When asked about the role of HRM in banking, Mr. Rajiv Deka was of the opinion that HRM

drives business transformation initiatives. It is therefore not completely incorrect to conclude

that HRM participates in the decision & allocation process after the major issues are decided.

Ms. Rohini Rai however emphasized saying that In the post business decisions, HRM

participation in the business implementation & resource allocation is solicited. It is necessary

that the banks take up human resources accounting & involve HRM departments fully in the

business process changes so that the full potential of change in business processes may be

realized.

Interestingly the response about the changes within the HR Departments with reference to a

change in the business strategy revealed similar dichotomy.

3. EFFECTIVENESS OF HRDPosting right person for the right job, retaining talents, planning for the long term needs of the

bank, dovetailing employee preferences in the deployment process, & capacity to make staff

changes that drive business changes are the corner stones of HR strategy. How effective are the

banks in performing these tasks?

The two personnel were of the opinion that:

They are effective when it is a question of ability to post staff with appropriate skills &capabilities for the job/s.

Also these departments have enough room/flexibility with regard to their ability to makechanges in staffing pattern/position based on changes in business conditions.

As regards PSU banks, the response to the effectiveness should, be read in conjunctionwith the issues on transfer & promotion policy. The posting of staff with appropriate

skills & capabilities could be well suffixed with subject to availability of suitable skills

& talents in the given location.


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HRM effectiveness could also be suited with reference to be its role in staffing of each

department/unit. In an effective organization, the department will have a say in the matter &

work hand in glove with the line departments. This seems to be in vogue in private sector &

foreign banks. Invariably, in these organizations, the line departments & HRD jointly select

candidates, while HRD is involved in the head hunting, finalizing pay & related aspects. In the

case of PSBs, in the past the selection process was through advertisements for a large number of

posts.

On selection, the candidates were given an induction training & job-specific training.

Undoubtedly this has been a successful model as it has thrown up a large number of very

efficient leaders in the sector. In the recent years, however, there are apparent changes in the way

the staff are selected in PSBs. There are campus recruitments & sporadic instances of specialists

being inducted at higher levels.

Some of the banks have also started offering market related pay. Yet, as of now, it appears that in

the case of PSBs the line departments have no right in the selection of candidates. The responses

clearly show that there is a need for greater coordination between the HR & line the participant

HR functionaries have indicated that job rotation is an important aspect of employeedevelopment. They have also indicated that most jobs are becoming specialist in nature. Indeed

the concept of job rotation is contrary to the development of specialist skills.

4. COPING WITH THE EMPLOYEE TURNOVERIf a bank does not have the staff with the required skills at the required place it would resort to

recruiting. This coupled with

I. The need for specialization & new skill sets for CBS &II. Marketing of bank products bring us to the two issues that have gained the

attention of HR departments in the recent years, namely staff deployment

techniques & managing employee turnover.


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Across the banking sector everyone is facing a high level of employee turnover in the recent

years. If till recently it was the BPO sector, which was the biggest recruiter, it is now the turn of

retail business. It is seen that bank employees are able to take up jobs in these relatively new

areas. In the view of this, it is seen that the turn over level during the current year is higher than

the previous years.

It can be said that the current period is the most challenging times for HRD, as staff-mostly

talented & experienced officers-move from public sector to private sector & within the private

sector to the greener pastures. Certain specialist areas such as treasury management, risk

management & customer relationship face acute shortage of experienced & talented staff. As

PSBs cannot offer-barring a fraction of their business-market related salaries the turn over has

been high. Another reason for loss of staff is the requirement of domain staff in the ITcompanies. Transfers have also been cited as one of the reasons for turnover in the public sector.

The available avenues to manage this issue are outsourcing, re-skilling, hiring temporary staff;

reuse of retired staff, etc. it is seen from the news reports that, in making financial inclusion

happen, banks have resorted to the use of the expertise of retired staff. Some of the retired staff

has also come forward to handle training assignments. The following figure shows the

importance of HR in each strategy adopted by banks in the matter of staff deployment:


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Performance Appraisal:

A related issue is the performance appraisal system that currently focused more on promotions &

not on linking performance to deployment of specialization. Performance appraisal is also more

on traits than on any qualitative or quantitative appraisal of work. In the absence of clearly

defined individual & organizational goals the appraisal has become a routine. Participants

indicated the need for a change & more business oriented appraisal & felt that appraisal systems

such as 360 Degree appraisals will be useful in future. The overwhelming feeling is that PA

system should change & react to new needs.

5. RECRUITMENT IN BANKSEvidently the banks are waking up to many new issues. One such issue is the changing

recruitment market. What according to the HR executives attracted candidates to the banks?

What attracts candidates to your banks?

Sr. No. Particulars

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MORE

LESS

NO CHANGE

DONT USE


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1. Work & Life Balance

2. Career Growth Opportunities

3. Banks Track Record

4. Compensation Being Better Than Market5. Good Company Values

6. Challenging Work Environment

7. Positive Corporate Reputation

8. Others

The personnels felt that the recruitment policies, in future, will be woven around the above

aspects (Table). It is an indication of changing times that the list includes items such as

performance linked incentives, fast track promotion, foreign posting education, choice of

departments, sabbatical & stock option. If turnover is high & recruitment poses challenges on

account of high salary & work life balance expectations the HR function needs to adopt many

different methods to educate/train the staff.

Employee Development Techniques

It was earlier seen that the major task before the HRD is to instill new skills with the staff. In this

connection it can be pointed out that all the banks own a large training network. They also have

access to other training establishments & seminars. Banks also send employees to B schools for

short duration courses & MDPs. The major emphasis of banks is to use their training systems &

establishments to the fullest extent. Banks were also keen on encouraging their staff to take up

new courses & correspondence courses. The schemes of reimbursements of expenses were rather

liberal.


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As staff turnover & new positions are filled, knowledge management becomes important. The

rules, procedures & customers, data that have been gathered need to be made available to the

new staff such that continuity & service excellence is maintained. There is a need to curtail

expenses in reinventing wheels. The HR executives felt that the HR department can also function

as knowledge management centre. Banks have already begun knowledge management efforts.

6. SOURCES OF RECRUITMENTThe various sources of recruitment may be broadly classified into two categories, i.e., internal &

external sources. Some organizations draw their human resources internally, i.e., from within the

organization while others draw externally, i.e., from outside the organization.

0

5

10

15

20

25

30

35

40EFFECTIVE

NOT EFFECTIVE

NOT TESTED

Sources of

Managerial

Recruitment

I

N

T

E

R

N

A

L

E

X

T

E

R

N

A

L

PROMOTION

TRANSFER

RETIREMENT

RECALLS

INTERNAL ADS

CONSULTANTS

ADVERTISEMENTS

INSTITUTES

RECOMMENDATION

DEPUTATION


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CONCLUSION

The banking sector has grown from a few institutions primarily involved in deposit acceptance

and trade finance into a complex multi player where large number of commercial banks,

financial institutions and specialized banks are operating with various products and activities.The banking has become a complex activity within the financial market linked directly and

indirectly with an over-all national growth and its impact as an integral part of regional segment

of a global banking environment.

Thus, event the high automation would require proper man behind the machine to make things

happen. This idea has been realized by top managements in progressive banks.

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 end and a highly educated and trained professional as head of

corporate finance at the other.

HRM is of great importance in banks. The training and development of employees is very much

important. Recruitment and selection must also be done very efficiently. The major challenge for

this industry is, attractingthe right talent and retaining them.

To conclude the growth of banking sector in the future depends upon appropriate HRM policies

which will assist the employees in achieving their personal goals and in turn will enhance the

individuals contribution to the organization. Objectives of the employees should be met if

employees are to be maintained, retained and motivated.

ACKNOWLEGEMENT


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I sincerely thank the University for introducing a degree course in B. Com for Banking &

Insurance. This has given us an opportunity to gain knowledge on the insights of the Banking &

Insurance industry. A special thanks to our esteemed coordinator Prof. A.R.Suri for guiding andmotivating me during this project. I would also like to thank the librarian of Jai Hind College

who helped me in finding out various books on the topics.

This project was highly educational and a great learning experience.

BIBLIOGRAPHY

BOOKSHuman Resource Management and Industrial RelationsP. Subba Rao


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Human Resource ManagementK. Ashwathapa

Human Resource ManagementP. V. Rao

The future of Human Resource Management - K. Ashwathapa

Human Resource and Personnel ManagementWilliam Wrether

WEBSITESwww.hrmguide.net

www.humancapitalonline.com

www.google.com

www.hrmtoday.com

www.wikipedia.com
http://www.hrmguide.net/http://www.hrmguide.net/http://www.humancapitalonline.com/http://www.humancapitalonline.com/http://www.google.com/http://www.google.com/http://www.hrmtoday.com/http://www.hrmtoday.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.hrmtoday.com/http://www.google.com/http://www.humancapitalonline.com/http://www.hrmguide.net/

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