HRM in Private %26 Public Sector Banks

8/19/2019 HRM in Private %26 Public Sector Banks

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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 PRATIAL FULFILLMENT FOR

BACHELOR OF BANKING & INSURANCE

SUBMITED B!

PAVITRA DEVI SOKKALINGAM

ROLL NO. 04

T!BBI "SEMESTER # V$

SUBMITTED TO

UNIVERSIT! OF MUMBAI

ACADEMIC !EAR

%0' # %0(

UNDER THE GUIDANCE

OF

MISS. S.SUDHA

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ACKNO)LEDGEMENT

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 rincipal !r. "i#ay !abolkar for

their constant efforts to conduct this course smoothly.

I would also like to extend my heartfelt thanks to course coordinator$ my

parents$ %ibrarian and friends for their constant support and encouragement

!ate

lace Mumbai 'ignature of 'tudent

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DECLARTION

I am avitra !evi 'okkalingam the student of (uru )anak *ollege of +rts$

'cience & *ommerce studying in T.,. -Bachelor of Banking & Insurance

'emester/". 0ereby declare that I have completed this ro#ect on “H*+

R/*12/ M+ 5 P*652 8 P159 S21 B:/ in the academic

year 1234/35.

This information submitted is the true & original to the best of my

knowledge.

!ate

lace Mumbai 'ignature of 'tudent

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CERTIFICATE

G*1* N: C ; A1/, S252 & C++12

This is to certify that avitra !evi 'okkalingam of T.,. -Bachelor of Banking and

Insurance 'emester/" -,ear 1234/35 has successfully completed the ro#ect on

“H*+ R/*12/ M+ 5 P*652 8 P159 S21 B:/ under

the guidance of Miss '. 'udha.

'ignature of ro#ect (uidance 'ignature of rincipal

'ignature of coordinator 'ignature of 6xternal 6xaminer

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INDE<

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S1. T=52 P

3. Introduction to Bank 27

1. The 'tructure of Banking 'ystem in India 28

9. :unctions of Banks 39

;. Introduction to 0uman


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19. *onclusions 79

1;. Bibliography 7;

I18*25 ; B:>

:inance is the life blood of trade$ commerce and industry. )ow/a/days$

banking sector acts as the backbone of modern business. !evelopment of any

country mainly depends upon the banking system.

The term bank is either derived from old Italian word banca or from a

:rench word banque both mean a B2? or +@ 2? 6. In olden days$

6uropean money lenders or money changers used to display coins of different

countries in big heaps -@uantity on benches or tables for the purpose of lending or

exchanging.

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+ 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.

C?1215/52/ F*1/ ; B:>

D5 5 M@>

Bank is a financial institution which deals with other peopleAs money i.e.

money given by depositors.

I85958* F51+ C+=@>

+ Bank may be a person$ firm or a company. + banking company means acompany which is in the business of banking.

A22=2 ; D=/5>

+ 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.

G595 892/>

+ bank lends out money in the form of loans for those who re@uire it for

different purposes.

P@+ 8 )5?81>

+ bank provides easy payment and withdrawal facility to its customers in the

form of che@ues and drafts. It also brings bank money in circulation. This

money is in the form of che@ues$ drafts$ etc.

A2@ 8 U55@ S1952/>

+ bank provides various banking facilities to its customers. They include

general utility services and agency services.

P1;5 8 S1952 O155>

+ bank is a profit seeking institution having service oriented approach.

E91 521/5 F*25/>

Banking is an evolutionary concept. There is a continuous expansion and

diversification as regards the functions$ services and activities of a bank.

C25 L5:>

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+ 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.

B:5 B*/5//>

+ bankAs main activity should be to do business of banking which should

not be subsidiary to any other business.

N+ I85@>

+ bank should always add the word bankC to its name to enable people

to know that it is a bank and that it is dealing in money.

E2152 6:5 8 E-6:5>

6lectronic banking is offering improved services to the customers are as

follows

• +TM *ards

• *redit *ards

• 6lectronic transfer of money

THE STRUCTURE OF BANKING S!STEM IN INDIA AND OTHER

DETAILS " )ITH DIAGRAMS $

The structure of banking system in India is significantly different from other

countries. It can be classified as given below

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. R/19 B: ; I85>


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These institutions run to make profit. They cater to the financial re@uirements of

industries and various sectors like agriculture$ rural development$ etc. it is a

profit making institution owned by government or private of both.

C++125 6: 52*8/ =*652 /21, =159 /21, ;15 6:/ 8

15 1*1 6:/>

. P*652 /21 6:/>

It includes 'BI$ seven -7 associate banks and nineteen -38 nationaliEed

banks. +ltogether there are 17 public sector banks. The public sector accounts for

82 percent of total banking business in India and 'tate Bank of India is the largest

commercial bank in terms of volume of all commercial banks.

6. P159 /21 6:/>

rivate sector banks are those whose e@uity is held by private shareholders.

:or example$ I*I*I$ 0!:* etc. rivate sector bank plays a ma#or role in the

development of Indian banking industry.

2. F15 B:/>

:oreign banks are those banks$ which have their head offices abroad. *ITI

bank$ 0'B*$ 'tandard *hartered etc. are the examples of foreign bank in India.

8. R5 R*1 B: "RRB$>

These are state sponsored regional rural oriented banks. They provide credit

for agricultural and rural development. The main ob#ective of

3. C-=159 B:>

*o/operative bank was set up by passing a co/operative act in 382;. They

are organiEed and managed on the principal of co/operation and mutual help. The

main ob#ective of co/operative bank is to provide rural credit.

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The cooperative banks in India play an important role even today in rural co/

operative financing. The enactment of *o/operative *redit 'ocieties +ct$ 382;$

however$ gave the real impetus to the movement. The *ooperative *redit 'ocieties

+ct$ 382; was amended in 3831$ with a view to broad basing it to enable

organiEation of non/credit societies.

T?1 51 /1*2*1/ 5/ 5 ? 2=159 6:5>

i. 'tate cooperative bank at the apex level.

ii. *entral cooperative banks at the district level.

iii. rimary cooperative banks and the base or local level.

4. S2?8*8 8 N-S2?8*8 6:/>

+ bank is said to be a scheduled bank when it has a paid up capital and

reserves as per the prescription of

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. Fhen we speak of a 6: $ we

generally mean a 2++125 6: . *ommercial banks are those institutions

which conduct the business purely on profit motive. *ommercial banks receive

surplus money from the people who are not using it and lend to those who need it

for productive purpose.

+ 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

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group of people at some higher rate of interest. The difference between the two

rates of interest is the profit of the bank.

. D;555 O; A C++125 B:>

'ome important definitions of commercial bank are given below.

.. P1;//1 G. C1?1>

G+ bank is a firm which collects money from those who have it spare. It lends to

those who re@uire it.G

.%. P1;//1 P1:5>

G+ 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

)? 1 ? F*25/ ; B:/ D51+ > The functions of banks are

briefly highlighted in following !iagram or *hart.

These functions of banks are explained in following paragraphs of this article.

A. P15+1@ F*25/ ; B:/>

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.

. A22=5 D=/5/>

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The bank collects deposits from the public. These deposits can be of

different types$ such as/

a. 'aving !eposits

b. :ixed !eposits

c. *urrent !eposits

d.

This type of deposits encourages saving habit among the public. The rate of

interest is low. +t present it is about ;H p.a. Fithdrawals of deposits are allowed

sub#ect to certain restrictions. This account is suitable to salary and wage earners.

This account can be opened in single name or in #oint names.

6. F58 D=/5/>

%ump sum amount is deposited at one time for a specific period. 0igher rate

of interest is paid$ which varies with the period of deposit. Fithdrawals are not

allowed before the expiry of the period. Those who have surplus funds go for fixed

deposit.

2. C*11 D=/5/>

This type of account is operated by businessmen. Fithdrawals are freely

allowed. )o interest is paid. In fact$ there are service charges. The account holders

can get the benefit of overdraft facility.

8. R2*115 D=/5/>

This type of account is operated by salaried persons and petty traders. +

certain sum of money is periodically deposited into the bank. Fithdrawals are

permitted only after the expiry of certain period. + higher rate of interest is paid.

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%. G15 ; L/ 8 A892/>

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. =verdraft

b. *ash *redits

c. %oans

d. !iscounting of Bill of 6xchange

. O9181;>

These types of advances are given to current account holders. )o separate

account is maintained. +ll entries are made in the current account. + 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. +n

overdraft facility is granted against a collateral security. It is sanctioned to businessman and firms.

6. C/? C185/>

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

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with bank. 'eparate 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.

2. L/>

It is normally for short term say a period of one year or medium term say a

period of five years. )ow/a/days$ banks do lend money for long term.

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. =n

maturity$ the bill is presented to the drawee or acceptor of the bill and the amount

is collected.

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B. S281@ F*25/ ; B:/>

The bank performs a number of secondary functions$ also called as non/

banking functions.

These important secondary functions of banks are explained below.

. A2@ F*25/>

The bank acts as an agent of its customers. The bank performs a number of

agency functions which includes/

a. Transfer of :unds

b. *ollection of *he@ues

c. eriodic ayments

d. ortfolio Management

e. eriodic *ollections

f. =ther +gency :unctions

. T1/;1 ; F*8/>

The bank transfer funds from one branch to another or from one place to

another.

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6. C25 ; C?*/>

The bank collects the money of the che@ues through clearing section of its

customers. The bank also collects money of the bills of exchange.

2. P15852 P@+/>

=n standing instructions of the client$ the bank makes periodic payments in

respect of electricity bills$ rent$ etc.

8. P1;5 M+>

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.

. P15852 C25/>

The bank collects salary$ pension$ dividend and such other periodic

collections on behalf of the client.

;. O?1 A2@ F*25/>

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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%. G1 U55@ F*25/>

The bank also performs general utility functions$ such as/

a. Issue of !rafts$ %etter of *redits$ etc.

b. %ocker :acility

c. Underwriting of 'hares

d. !ealing in :oreign 6xchange

e. ro#ect


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6. L2:1 F255@>

The bank provides a locker facility for the safe custody of valuable

documents$ gold ornaments and other valuables.

2. U81155 ; S?1/>

The bank underwrites shares and debentures through its merchant banking

division.

8. D5 5 F15 E2?>

The commercial banks are allowed by

The bank may also undertake to prepare pro#ect reports on behalf of its

clients.

;. S25 );1 P11++/>

It undertakes social welfare programmes$ such as adult literacy programmes$

public welfare campaigns$ etc.

. O?1 U55@ F*25/>

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 travellerAs che@ue facility.

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INTRODUCTION OF HUMAN RESOURCE MANAGEMENT>

H*+ 1/*12 ++ -HRM or simply HR is a function in

organiEations designed to maximiEe employee performance in service of an

employers strategic ob#ectives. 0< is primarily concerned with the management of

people within organiEations$ focusing on policies and on systems. 0< departments

and units in organiEations typically undertake a number of activities$ including

employee recruitment$ Gtraining and developmentG$ performance appraisal$ and

rewarding -e.g.$ managing pay and benefit systems. 0< also concerns itself

with industrial relations$ that is$ the balancing of organiEational practices with

re@uirements arising from collective bargaining and from governmental laws. 0


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In startup companies$ trained professionals may perform 0< duties. In larger

companies$ an entire functional group is typically dedicated to the discipline$ with

staff specialiEing in various 0< 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. +cademic and practitioner organiEations likewise seek to

engage and further the field of 0organiEational psychology$ with research articles

appearing in a number of academic #ournals$ 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. )ew 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

before. 0< departments strive to offer benefits that will appeal to workers$ thus

reducing the risk of losing corporate knowledge.

M5>

H*+ R/*12 M+ 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 employeeAs safety$ welfare

and health by complying with labour laws of concern state or country.

)?@ + ?*+ 1/*12 ++

H*+> refer to the skilled workforce in the organiEation.

R/*12> refer to limited availability or scarce.

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M+> refer to maximiEe or proper utiliEation and make best use of

limited and a scarce resource.

+ltogether$ human resource management is the process of proper and maximiEe

utiliEation of available limited skilled workforce. The core purpose of the human

resource management is to make efficient use of existing human resource in the

organiEation. 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 92 per cent$ will negatively impact the overall productivityof the sector$ warn industry experts.

6very organiEationAs desire is to have skilled and competent people to make their

organiEation more effective than their competitors. 0umans are very important

assets for the organiEation rather than land and buildings$ without employees

-humans no activity in the organiEation can be done. Machines are meant to

produce more goods with good @uality but they should get operated by the human

only.

G,ou 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 @uality minds to work for you$ then you

must protect the respect and dignity. G

///Mr. ).

The greatest tragedy in +merica 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 utiliEe our abilities$ which means that most men

and women go to their graves with their music still in them.C / =liver Fendell

0olmes.

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http://www.infosys.com/http://www.infosys.com/http://www.infosys.com/


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The human mind is our fundamental resource.C / Kohn :. Dennedy.

HUMAN RESOURCE MANAGEMENT>

:or any organiEation to function effectively$ it must have resource of men

-0uman


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9. 'electing the right people for the #ob$

;. =rienting and training$

4. !etermining and managing wages and salaries$

5. roviding benefits and incentives$

7. +ppraising performance$

?.

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

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http://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisal


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organiEation.

E85 F5== defines / 0 To maintain the departments contribution at a level

appropriate to the organiEationAs needs.


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more or less sophisticated than the organiEation demands. + departments level

of service must be appropriate for the organiEation it serves.

;. P1/ 6259> To assist employees in achieving their personal goals$ at

least insofar as these goals enhance the individuals contribution to the

organiEation. ersonal ob#ectives of employees must be met if workers are to be

maintained$ retained and motivated. =therwise$ employee performance and

satisfaction may decline$ and employees may leave the organiEation.

N*1 ; H*+ R/*12 M+

0uman


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O6259> 0uman


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SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of 0uman


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H*+ 1/*12/ =5> 0uman resource planning or 0uman +nother important area of 0uman Based on information collected from #ob

analysis the company prepares advertisements and publishes them in the

newspapers. This is recruitment. + number of applications are received after

the advertisement is published$ interviews are conducted and the right

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employee is selected thus recruitment and selection are yet another important

area of 0uman =nce the employees have been selected

an induction or orientation program is conducted. This is another important

area of 0uman 6very employee goes under training

program which helps him to put up a better performance on the #ob. 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.

P1;1+2 ==15/> =nce the employee has put in around 3 year of

service$ performance appraisal is conducted that is the 0uman There are various rules

regarding compensation and other benefits. It is the #ob of the 0uman

Motivation becomes important to

sustain the number of employees in the company. It is the #ob of the 0uman

+nother important area of 0uman


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T? H*+ R/*12 O;;521 is responsible for providing support in the various

human resource functions$ which include recruitment$ staffing$ training and

development$ performance monitoring and employee counseling.

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 organiEational performance from last several years

especially in the banking industry. Influence of 0uman


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organiEational performance. 0uman resource management -0


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IV. )H! HUMAN RESOURCE MANAGEMENT IS IMPORTANT FOR

BANKS>

0uman


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HUMAN RESOURCE MANAGEMENT IN PUBLIC SECTOR BANKS

In the recent times$ the contours of 0< function in public sector banks are slowly

but definitely changing. =ne could say that these banks are discovering the 0


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R/=/56555/>

To be the principal sponsor & guardianC of 0< 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 ob#ectives of the Bank.

To continuously monitor the BankAs strategies to ensure that 0< 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.

CURRENT CHALLENGES FACED B! BANKS IN HUMAN

RESOURCE MANAGEMENT

E;;259 1: ;12>

+ time/consuming and hectic #ob is to hunt the right talent. 0igher the

professional value of the vacancy$ tougher is the search. Identifying the right

stuff followed by negotiation is the element which makes the #ob tough for the

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employee. Banks are keenly interested to fill up two types of breeds of

professionals.

=nes who are outstanding professionals with high #ob hopping attitude/// these

are those who come/in/work for some time and then leave for better prospects.

=thers 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

@ualified business graduates are engaged by banks and a certain percentage of

these well/e@uipped professionals stay back within the organiEation to grow

into the footsteps of senior managers.

Banking #obs 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 specialiEed hiring agencies

who may take up the #ob of hiring in case of large number of vacancies.

R5? P=>

The most difficult agenda of 0


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The situation is not the same anymore. +n increment of

6verybody in the bank wants to work in the professional department$

preferential location$ city of his own choice and boss of his liking. +n

administrative deviation from any of these results in lowered #ob satisfaction.

+lthough hiring is normally based on regional re@uirement matching the area of

activity with that of employeeAs nativity yet other elements like appointment in

the department of choice and preference makes the #ob of 0< manager @uite

challenging.

Fhat the 0< 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.

M1 B/5>

Fhat has long been overlooked is the morale boosting of the employees by the

organiEation. 0uman beings even if satisfied of material wellbeing need to be

appraised and encouraged constantly.

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'mart banks have realiEed 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.

C?/ F28 B@ B:5 I8*/1@

0ere are the ten challenges that the 0< function in India faces

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3 The first and foremost challenge that 0< function in India faces is to convert

the abundant population pool into useful human resource.

1 Training and development of human resource to match ever changing industry

demands re/@uires 0< to develop new and innovative ideas that suit individual

as well as industry criteria.

9 6mployee motivation and satisfaction is another area of concern for the 0


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8 (lobaliEation poses 0< with challenges such as expatriation and repatriation.

0< needs to train employees that leave their nation for fulfilling a foreign

assignment. It also needs to pro/vide such employees with ade@uate moral support

and assure them of #ob security on their return.

32 Fith multinational organiEations on the rise$ 0< 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.

M5 HR C?/>

The banking sector has been growing at a very fast pace in India not only in the

terms of its siEe but also in terms of the services being provided. Fith banks

reaching the remote areas in the country one can anticipate positive things like

financial aid to farmers and increased financial awareness. 0owever$ with the

increase in siEe 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 0< is to develop

strategies that help banks in gaining competitive advantage and encourage

innovation in its products and services.

M5 H*+ R/*12>

*onsidering the above 0< challenges which our Indian banking industry is facing$

we can manage the human resources by proper lanning like

0iring the right person for the right #ob

conducting exit interviews

H515 ? R5? P1/ ;1 ? R5? J6>

In assessing whether the Gright personG has been selected for the Gright #obG$ the

most prominent theoretical concept that emerges is the concept of GfitG. !ifferent

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writers emphasiEe different types of fit. 'ekiguchi -122; 378 in a review of

literature on person/environment fit discusses two types of fit that emerge as the

most prominent types of fit person #ob fit and person/organiEation fit. In pursuing

person/#ob fit$ companies seek to match the #ob holders knowledge$ skills and

abilities to the re@uirements of the #ob. *ompanies can ascertain person/

organiEation fit by focusing on how well the individual fits with the culture or

values of the company and the individuals capacity to work well with other

company employees.

Banks have to plan for the following

+ steady$ carefully calibrated recruitment programme.

+s rapid technological changes transform business L continuous skill up/

gradation.

+ new generation of the workforce working alongside an older generation as a

team. Banking$ it is a team work and these new situations re@uire cultural

ad#ustments and therefore$ change management.

R55 8 D9=5 E+=@/>

Fe 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

T155 8 D9=+>

Fith 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 siEe and well recogniEed in the world market. To pull

consumers banks are offering traditional with advance services like 'M' banking$

+TM$ internet banking$ priority banking$ demat. 'o 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 dayAs supermarket extending almost every

facility of banking under one roof.

43


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B:/ 5: B: ; B18 are conducting (rooming and eti@uettes programmes

for front line employees and also for employees selected for overseas posting in

order to improve their service levels and @ualitative interaction with customers andvarious stakeholders better. '66! -'elf efficiency and effectiveness development

programme being run for frontline staff of the Bank in order to improve their

service skills and servicing efficiency.

I P*6 N5 B:, in the light of the large scale human resources gaps

that Bank is likely to face in the next few years need for 'uccession olicy has

been felt. The olicy envisages mapping of the existing pool against the future

re@uirement from the pro#ected business figure to ensure that ade@uate number of

officials are available in the pool and also to foresee the surplus > deficit in the pool

for ascertaining the re@uirement of succession in a particular vertical. Bank has a

three tier training set up comprising of *entral 'taff *ollege -*'* at !elhi at

apex level catering to training needs of Top > 'enior > Middle Management (rade

officers$ three

Banking service is one sector where a great degree of attention is being paid to

performance appraisal system. 'everal of the nationaliEed 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

(eneral Intelligence

Kob Dnowledge

Initiative and resourcefulness

'upervision

Business *apacity

44


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+bility to assess sound

Business propositions

!ependability

0!:* 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

employment or on termination of employment of an amount e@uivalent to 34 days

45


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basic salary payable for each completed year of service. "esting occurs upon

completion of five years of service.

S*=1*5>

6mployees of the Bank$ above a prescribed grade$ are entitled to receive retirement

benefits under the BankAs 'uperannuation :und. The Bank contributes a sum

e@uivalent to 39H of the employeeAs eligible annual basic salary -34H for the

Managing !irector$ 6xecutive !irectors and for certain eligible erstwhile

*enturion Bank of un#ab -Qe*Bo staff to insurance companies$ which‟

administer the fund. The Bank has no liability for future superannuation fund

benefits other than its contribution$ and recogniEes such contributions as an

expense in the year incurred$ as such contribution is in the nature of defined

contribution.

S?1 T1+ E+=@ B;5/>

In 'tate 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 recogniEed during the period

when the employee renders the service.

The Bank operates a rovident :und scheme. +ll eligible employees are entitled to

receive benefits under the BankAs rovident :und scheme. The Bank contributes

monthly at determined rate -currently 32H of employeeAs basic pay plus eligible

allowance. These contributions are remitted to a trust established for this purpose

and are charged to rofit and %oss +ccount. 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 inemployment$ or on termination of employment. "esting occurs at different stages

as per rules.

46


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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 specialiEed banks are

operating with various product activities. %ike many other organiEed sectors$

banking re@uires multi/layer manpower for its various re@uirements of

professionals and support staff. The range may re@uire reasonably educated

security guards on the one hand and a highly educated and trained professional as

head of corporate finance. Fith liberaliEation of activities within the bankingsector$ 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 customerAs 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. 'mart banks have realiEed 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 0


48/76

; 6nthusiastic and pleasant behaviour of staff to the customer is necessary.

4 There must be a clearly defined system of succession planning and career

growth planning in banks.

5 +ttitudinal changes are re@uired at the top level.

7 0uman resource Balance 'heet should accompany financial statements.

? In order to become 0

etc.

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HUMAN RESOURCES MANAGEMENT IN PUBLIC AND PRIVATE

SECTOR BANKS

I18*25>

+t present$ Indian banking sector is facing wide variety of opportunities and the

bright future scenario. The changing economic scenario$ represented by rapid

process of globaliEation 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. !ue 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. 0owever$ there are certain problems in the Indian Banking

system$ which re@uire great attention.

S+ ; ? +1 =16+/ 1>

*ontinuous accumulation of morass$ which hampers the profitability of the

banks.

+ccumulation of )on/erforming +ssets -)+s$ which threatens capital

ade@uacy and continuous stability of banks.

'ome of the public sector banks are facing heavy over staffing$ which reduces productivity of the banks.

+bove all these re@uire 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.

49


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HUMAN RESOURCES MANAGEMENT PRACTICES

0uman resources management practices play a very vital role in achieving the

organiEationAs goals and maintain the competitive advantage.

0


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R21*5+ 8 /25>

ublic 'ector Banks follows systematic procedure in recruitment and selection

activities. :or 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 'Bs 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.

'ome banks are also utiliEing the services of consultants and employment on

contract basis.

T155 8 D9=+>

0

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 employeesA careers all banks

established their own training institute. Those institutes organiEed different types of

training and development programmes based on the employees need.

Those needs are identified by need assessment activities."olume/9$ Issue/31$ !ec/

Training is more in I'Bs 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. :urther the

I'Bs have a good support to training efforts from apex level training institutions

such as )ational Institute of Bank Management -)IBM$ Bankers Training *ollege

51


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-BT*$ and *ollege of +gricultural Banking -*+B. The I'Bs have more than

three hundred individual bank level training colleges and training centers.

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 #unior level bank staff. :or most of the senior level training$ banks

depend on external agencies$ especially foreign training organiEations. Training

establishments of some of the bigger banks complain of under utiliEation.

P1;1+2 A==15/>

erformance appraisal is the systematic$ periodic and an impartial rating of the

employeeAs excellence in matters pertaining to his present #ob and of his

potentialities for a better #ob.-6dwin B. :lipp.

ublic 'ector Banks in India give more attention towards performance appraisal in

the organiEations. erformance appraisal based on @uality of output$ potential of

the employee within the organiEation etc. need to be incorporated across all grade$

cadres and levels. This will not only ensure maximiEing productivity$ but also go a

long way in motivating star performers aligning with the long/term mission and

vision of banks.

C+=/5>

In general$ the compensation in ublic 'ector banks is mostly based on seniority or work experience. The Indian public sector banks should reward their professionally

@ualified employees by scale up/gradation and special increments besides

motivating and encouraging them to ac@uire new knowledge. *ommon pay

structures based on number of years of service with the bank put in etc need to be

phased out in a planned manner.

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SUGGESTIONS

=n the basis of review of this study the following suggestions are made for better

0scholarship for

higher studies and learn new technology in order to attain competence at global

level.

Banks should organiEe 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.

+ll banks should allocate sufficient budget and sends competent employees to

international conferences and seminars to prepare them for the competitive

knowledge global market.

53


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0uman


55/76

'tate Bank of India is the nations largest and oldest bank. Tracing its roots

back some 122 years to the British 6ast India *ompany -and initially established as

the Bank of *alcutta in 3?25$ the bank operates more than 34$222 branches within

India$ where it also owns ma#ority stakes in six associate banks. 'tate Bank

of India -'BI has more than ?2 offices in nearly 94 other countries$ including

multiple locations in the U'$ *anada$ and )igeria. The bank has other units

devoted to capital markets$ fund management$ factoring and commercial services$

credit cards$ and brokerage services. The

clerks$ and 19.5H were subordinate staff. The composition of staff was the same

for the nationaliEed banks with 17.8H of staff being officers$ 42.7H being clerks$

and 13.;H being subordinate staff.

erformance and otential +ppraisal The promotion to a higher management level

is best thought of through the lens of a tournament model -%aEar and grade not because he is good$ but because he is

better than everybody else at the current level>grade.

55


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lacement romotion and *areer rogression$ =ut of Turn romotion> Increment

to 'ports erson industrial 'econdment.

Interface with other institutions$ government$ central banks$ etc. on 0

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

0

system. To design career and succession plans. To review and revitaliEe

the training functions$ 'ummer lacement$ :ormulate and administer the 'taff

'uggestion 'cheme$ ublication of 0ouse Kournal$ Fithout


57/76

C/ D5/>

*ase *ode 0

'tate Bank of India$ "


58/76

was in response to :ederation of Indian *hambers of *ommerce and Industrys

-:I**I3 report on the banking industry. The report stated that the Indian banking

industry was overstaffed by 94H. In order to trim the workforce and reduce staff

cost$ the (overnment announced that it would be reducing its manpower.

:ollowing this$ the Indian Banks +ssociation -IB+1 formulated a "


59/76

S 'tate Bank of 0yderabad

S 'tate Bank of Indore

S 'tate Bank of Mysore

S 'tate Bank of atiala

S 'tate Bank of 'aurashtra

S 'tate Bank of Travancore

S 'tate Bank of Bikaner & Kaipur.

The 'BI 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. :or corporate banking$ 'BI offered infrastructure

finance$ cash management and loan syndication...

T? P1//>

The 'BI was shocked to see the unprecedented outcry against the "


60/76

after they attained the retirement age by the end of 1223. +nalysts felt that this

would lead to a tremendous increase in the workload on the existing workforce

HUMAN RESOURCES MANAGEMENT IN ICICI BANK>

The achievement of an organiEation is the result of the combined efforts of each

and every employee. +ll individuals want to do a good #ob$ and if they are provided with

the proper environment$ they will do so. eople rarely succeed at anything unless

they en#oy doing it. The Bank has always viewed 0uman


61/76

building and gives an impetus to the effort put in achieving business goals more

efficiently. + seminar was conducted in Kanuary 3888 which enabled the Bank to

establish clearly the link between businesses strategy and human resource strategy.

+ccordingly$ different kinds of mindsets were worked out to ascertain there

re@uirement 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. rivate Banks started

the decade with 1;.4H of staff as officers$ 4;.?H as clerical$ and 12.7H as

subordinate staff. By the end of the decade 95.1H of the staff were officers$

;4.8Hwere clerical$ and 37.8H were subordinate staff. + new organiEational

structure effective +pril 3$ 3888 was implemented successfully with the change

agent role played by the 0< !epartment. Three different #ob profiles viE.$

customer service and cross selling of products$ back office operations and

marketing and sales emerged after the new organiEational structure was put in place.

The recruitment process has been fine/tuned through specially devised processes

that identify an individualAs degree of customer orientation the principal trait

needed in the banking business. )ew 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. *areer progression is based on performance of employees being

above an acceptable level with emphasiEe on those with high business drive

and potential. These exercises are carried out by the *areer !evelopment *entre$

which offers a comprehensive competency building program. This process has

been followed for the last 4 years and has been perceived as being fair and credible by the

employee.+ 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. :urther$ 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 6mployee 'tock =ption 'cheme -the

'cheme. The first grant of stock options under the 'cheme was made during the

61


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year. The total number of staff of the Bank increased from ?83 as on March 93$

3888 to3$ 9;; as on March 93$ 1222. =n an average$ an employee received 97

hours of

training during the year. The Bank conducted 9; internal and 57 external

training programs involving 54? and 38? employees respectively. :urther$ 11

employees were a part of overseas training programs.

CASE STUD! OF HUMAN RESOURCE MANAGEMENT IN ICICI

BANK

C/ D5/>

*ase *ode 0


63/76

Teaching )ote )ot +vailable*ountries IndiaIndustry Banking and :inance

T?+/>

0uman %eadership !evelopment> Mentoring

I//*/>

*ritically analyEe talent management strategies at I*I*I Bank.

Understand the mentoring process adopted by Damath 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.

K@ )18/>

I*I*I Bank$ Talent management$ %eadership talent$ Mentoring$ )urturing talent$

%eadership development$ erformance appraisal$ 0uman capital$ Talent

assessment$ %eadership pipeline$ 6ntrepreneur model$ Talent screening$ 952/degree

performance management process$ I*I*I !)+$ Talent retention

"*ea)e&h#! #& he ab#(#y o han)(e he +ob a he ne, (e-e( #h co'fo. Be#ng

ab(e o !efo' you fuue o(e #n he !e&en. I #& e&!ec#a((y #'!oan #n an

#n)u&y (#ke ou& hee !eo!(e ae ou 'o& #'!oan a&&e/ an) e )e!en) on

63

http://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Talent%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Leadership%20Developmenthttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Mentoringhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Talent%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Leadership%20Developmenthttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Mentoring


64/76

!eo!(e fo goh. 0hen you bune&& focu&e& on goh/ goo'#ng a(en #&

cuc#a(".

- C?8 K2??1, C?51+ 8 MD, ICICI B: L8., 5 %00.

"The bank& (ea)e&h#! #n he #n)u&y #& e,e'!(ay. Bu noh#ng o co'!ae #&

ab#(#y o &!o/ goo'/ an) )e!(oy (ea)e& #n2hou&e".

- I815 G*=, 851, F16/ I85 & G1 S+5? A81,

1=11 B+61, 5 %00.

I18*25>

I*I*I Bank %td. -I*I*I Bank$ the India/based financial banking institution$ began

a process of identifying and nurturing talent in the 38?2s. This practice paid rich

dividends$ with I*I*I Bank becoming known as a powerhouse of leadership talent.

6ver since ) "aghul -"aghul became the chairman and M! of Industrial *redit

and Investment *orporation of India %imited -I*I*I in 38?4$ the bank had

fostered a culture of nurturing young talent. "aghul brought in a fresh and different

approach to working in the organiEation. 0e involved younger people at the bank

in big pro#ects unlike *6=s of other organiEations who preferred to pick senior

level managers.

This was a bid to develop a talent pool at the bank. "aghulAs way of empowering

young people$ nurturing talent$ and developing a leadership pipeline became part

of the bankAs culture and was carried forward by former *6= and M!$ D"Damath -Damath and present *6= and M!$ *handa Dochhar -Dochhar.

Damath who #oined I*I*I Bank as *6= and M! in 3885$ created an incredible

talent for spotting employees with leadership potential. 0e was instrumental in

grooming several people who later took up key positions at the bank. Damath

nurtured people with potential leadership at the bank by moving them from one

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assignment to another and making them take up different leadership roles and

serving the bank. *ommenting on DamathAs ability to nurture talent$ Dalpana

Morparia -Morparia$ former #oint managing director$ I*I*I Bank$ said$ GMr

Damath has an amaEing ability to pick a leader and identify potential way beyond

what the people believed in. %ess than 12/14H of us had any clue where we were

headed in our careers.G

DamathAs vision was to enable I*I*I Bank to surge ahead and capture a vital share

of the market. 0e planned to create leaders within the organiEation who could

foresee opportunities ahead of others.

The mentoring process started with picking young employees who had #oined the

bank as management trainees and giving them hard/to/achieve targets to test their

potential. 6mployees passing the test were promoted to lead senior/level positions.

The success of the mentoring process led to the bank institutionaliEing a formal

leadership development process that identified talented employees through a

performance appraisal system after which they were assessed for future leadership

roles.

6xperts felt that the banks successful transformation from a lending financial

institution to a retail powerhouse could be attributed to its mentoring and

leadership development process.

B2:1*8 N>

I*I*I Bank was founded in 388; as a subsidiary of an Indian financial institution$

the Industrial *redit and Investment *orporation of India %imited -I*I*I. I*I*I

through its subsidiary$ I*I*I Bank$ transformed itself from a developmental

financial institution offering services such as pro#ect finance into a diversified

financial services group offering an array of products and services directly as well

as through subsidiaries and affiliates such as I*I*I Bank. In 3888$ I*I*I became

the first bank or financial institution from +sia barring Kapan to be listed on the

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)ew ,ork 'tock 6xchange. In 1222$ I*I*I and I*I*I Bank merged to benefit the

shareholders of I*I*I Bank through a large capital base and scale of operations.

In =ctober 1223$ the Board of !irectors at I*I*I and I*I*I Bank approved the

merger of I*I*I with I*I*I Bank and two of I*I*Is wholly/owned retail finance

subsidiaries L I*I*I ersonal :inancial 'ervices %imited and I*I*I *apital

'ervices %imited.

I*I*I Bank made phenomenal progress in a short period under the leadership of

Damath$ who #oined I*I*I %td. as its managing director and *6= in its embryonic

stage in 3885. It was at this time that the preliminary results of the liberaliEation

efforts that India had initiated in 3883 began to show.

In the changing environment$ I*I*I transformed itself from a traditional

development finance institution to a customer/centric private/sector bank. It was

not #ust merely a growth story of a corporate but the success of a clearly envisaged

leadership strategy adopted by Damath for the growth and development of the

bank leveraging human capital and technology. In Kanuary 1221$ the merger was

approved by shareholders of I*I*I and I*I*I Bank. In March 1221$ the merger

was approved by the (u#arat 0igh *ourt and in +pril 1221 by the 0igh *ourt of

Kudicature at Mumbai and the


67/76

In 1227$ I*I*I Bank created history by raising U'V 4 billion in the largest/ever

public offering in India and emerged as a valuable financial organiEation. In 1228$

Damath stepped down from the post of *6= and M! of I*I*I Bank in favor of

Dochhar.

:or the :, ended March 93$ 1231$ I*I*I Bank had assets worth U'V ?9.5 billion$

which made it the second largest bank in India.

N*1*15 T 5 5/ I55 !1/>

I*I*I had a history of identifying and nurturing young talent right from the time

'' )adkarni -)adkarni was chairman of I*I*I. Damath himself was picked by

)adkarni soon after he #oined I*I*I in 3873 after completing his post/graduation

from the Indian Institute of Management$ +hmedabad. *ommenting on )adkarnis

way of nurturing talent$ Damath$ said$ G0e taught me initial skills he had this

ability to test you by giving increasingly complex assignments. If you had any

intelligence you @uickly made out that he was actually testing you to see if you are

fit enough to go on to the next rung.G...

M15 - T? K+? )@>

=ne of the first things Damath felt he had to do on returning to I*I*I after an

eight/year stint with the +sian !evelopment Bank in 3884 was to create a talent

pool in a bid to transform the government promoted pro#ect finance institution into

a universal bank. !uring this time$ the bank also faced the problem of young

employees leaving the bank for better options. This prompted Damath to devise the

parking lot theory...

A F1+ L81/?5= D9=+ P12//>

'oon after I*I*IAs merger with I*I*I Bank in 1222$ Morparia and I*I*I 0< head

D


68/76

genius. This$ they felt$ was re@uired as the bank was scaling up from a 3$222

member organiEation to a strong team of 7222 employees. Moreover$ they felt that

the previous process of grooming leaders which had been heavily dependent on the

board memberAs contribution had started looking obsolete...

T S215 8 A////+>

+s a first step of the formal leadership development process$ the bank

institutionaliEed a talent screening process. Fith 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. 'ince 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. :or instance$ out of 34222 odd/

mangers$ the bank chose 1222 people as leadership talent...

G1+5 S*22//1/>

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 %alita (upte and Morparia were retiring in =ctober 1225 and in 1227$

respectively...

O?1 I5559/>

Fhile the formal leadership development system identified and nurtured young

professionals at the bank$ I*I*I Bank also took some initiatives to nurture leaders

at the senior management levels. :or instance$ in 1229$ I*I*I Bank came up with a

new leadership program called OMentoring the MentorsA 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

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companies across other sectors for this initiative. These professionals conducted

sessions on effective mentoring for the senior management level at the bank...

R/*/>

+ccording to experts$ I*I*I BankAs 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. :or instance$ in mid/122?$ the global economic environment became very

challenging due to the global financial crisis. I*I*I Bank also faced the heat due to

its heavy global exposure. Moreover$ a rumor that began in (u#arat that I*I*I

Bank would go bankrupt spread like wildfire...

L:5 A?8>

6xperts felt that though I*I*I Bank had a depth of talent$ it also faced the risk of

becoming a poacherAs paradise. +ccording to Dochhar$ GFhen an organiEation

grows at 94/;2 per cent per annum for 32 years and adds 32 new businesses during

that period$ young professionals get the kind of exposure they would not have got

anywhere else. Fe have groomed people to build and run businesses like

insurance$ securities$ and retail. 'o if other players are looking to grow who would

they pickW The best person would be someone who has already run the business.G...

E?565/>

6xhibit I I*I*Is rofit and %oss 'tatement

6xhibit II -+


70/76

6xhibit " I*I*I !)+ +nchors

6xhibit "I Dochhars *areer ath to the *6=

C+=159 A@/5/>

I*I*I is private global bank its 0< practices are totally different 'BI no.3 public

sector bank of India. ackage given by I*I*I is more enough than

salaries provided by 'BI. Incentives and benefit policies of I*I*I and 'BI is

totally different. 'election process of I*I*I is very lengthy and cost consuming.

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'election process of 'BI is two levels

= level

+dministrative =fficers. The training and development policies of I*I*I are

much better than 'BI. There is not much emphasis on training anddevelopment at 'BI.

RECOMMENDATIONS>

R2++85/ ;1 ICICI>

'implify its recruitment and selection process.

*ompetition in banking sector increases due to private banks. rivate

sector banks giving higher salaries to attract the talent. Thus it is necessary

for 'BI to increase its salaries. (ive more emphasis on training and development of employees.

Increase motivation by giving extra benefits.

SUGGESTIONS>

Based on findings emerged from the analysis of the data collected through

@uestionnaires and interacting with the management officials of the public sector banks$ the following suggestions are offered to improve the 0


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1. Banks should establish a high power 0


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facilities at branches need reexamination and whenever feasible$ these and other

such welfare measures may be suitably modified for the benefit of staff.

8. 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.

32. The system of reward and punishment should be made more clear and

transparent while there should be an institutionaliEed system for calling periodicalinformation$ good work done by staff for prompt appreciations of their deeds and

punishment to the erring employees should be @uick and proper to serve as a

deterrent to others.

33. + 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.

31. The development oriented +' should be integrated with the entire 0


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that of computeriEed branches serve the purpose of an audit and does not become a

routine.

CONCLUSION>

The face of banking is changing rapidly.

*ompetition 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.

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These are some of the issues that need to be addressed if banks are to succeed$

not #ust survive$ in the changing milieu.

Taking the banking industry to the heights of international excellence will

re@uire 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.

+ 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.

'pecialiEing 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.

BIBLIOGRAPH!

REFERENCE BOOKS>

0uman


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rinciples of Banking L Macmillum.

Koy$ =.M. Introduction to :inancial Management -Madras Institute for

:inancial Management and

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HRM in Private %26 Public Sector Banks

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