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1.1 Introduction:Wendell French describes human resources management as the

philosophy, policies, and practices related to the management of people within the organizations.

Human resources management is about managing people. It is a process of binding people and organizations together so that the objectives of each are achieved.

Human resources management is based on four fundamental principals:

(1) Human resources are the most important assets an organization has and their effective management is the key to its success. (2) Organizational success is most likely to be achieved if the personnel policies and procedures are closely linked to corporate objectives and strategic plans. (3) Organizational culture, values & climate significantly influence

managerial behavior & exert a major influence on the achievement of excellence. Hence continuous effort starting from the top is required for the management & acceptance of the culture. (4) Human resources management is concerned with integration getting all members of the organization involved and working together with a sense of common purpose. HRM is a management function that helps managers recruit, select, train and develops members of an organization.

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HRM Peoples dimension

A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employee to achieve their objectives. Is concerned with people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

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1.2 Objectives and goals of Human resources management:-

The overall purpose of Human resources management is to ensure that the organization is able to achieve success through people. Specifically, the objectives of Human resources management are:

(1)Integration of goals:HRM seeks to integrate all the individuals and groups within the organizations by reconciling individual/group goals with those of the organization.

(2)Cost containment:In todays competitive business environment, keeping expenses dawn or cost containment is a critical HRM goal.

(3)Goals through able employees:HRM seeks to help the organization attain its goals by providing it with competent and dedicated employees.

(4)Optimization of Human resources:By employing the knowledge and skills of employees efficiently and effectively, HRM seeks to optimally utilize the Human resources of the organization.

(5)Growth and development of employees:-

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HRM seeks to ensure the growth and development of the employees by providing opportunities for training & advancement.

(6)Satisfy needs:By providing adequate compensation, HRM seeks to ensure that the basic needs of the employees are satisfied and they are able to live a dignified life. (7)Motivation:An important goal of HRM is to motivate the Human resources through adequate monetary and non monetary incentives so as to simulate better performance, which in turn will enable the organization to accomplish its objectives. It also helps to retain talented employees and reduce employee turn over.

(8)Legal requirements:Every Human resources management decision, such as hiring, promoting firing, pay raises etc. Has a legal ramification. Hence, meeting legal requirements is also important HRM goal.

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Human resources management functions:-

(1) Human resources planning:-

HRP is the process of forecasting an

organizations future demand for, and the supply of, the right type of people in the right number. It is only after this that the HRM department can initiate a recruitment and selection process. It is a sub-system in the total organizational planning. It facilitates the realization of the companys objectives by providing the right type and the right number of personnel. HRP is variously called manpower planning, personnel planning or employment planning.

A few definitions of HRP are: HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future. Human resources planning are the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

(2) staffing: Staffing or acquisition of Human resources is another activity of Human resources management. Staffing activity determines the composition of an organizations Human resources. Staffing activities include attracting qualified people to the organization, selecting from among candidates, reassigning employees through transfer, promotion, or demotion and ultimately managing the employee separation through resignation, discharge or retirement.

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(3) Training and development: this activity of HRM focuses on improving the performance of individuals and groups within the organization. These activities aim to help employees learn new skills or refine existing skills. Human resources managers must decide which skills need

development and which methods are most effective for helping employees acquire skills and knowledge.

(4) Performance appraisal and review: Performance appraisal and review is an ongoing evaluation of individual & group contributions to the organizations and the communications of those evaluations to the persons involved. This HRM function is carried out for a number of purposes; to provide feedback about performance to determine the need for training, to make decisions bout promotions, pay increases and so on.

(5) Compensation and reward: organizations compensate employees through wages salaries bonuses, and benefits such as health insurance, vacation time, and pension programs. The presence or absence of rewards and recognition is important to employee morale and performance. Compensation decisions include determining ensuring fair and equitable pay differences among employees, designing a pay packages relative to that of its competitors, forms of compensation & so on.

(6) Employee participation: this is relatively new function of HRM. Employee participation focuses on giving employees a voice sharing information with them and consulting them on matters of mutual interest. Employee participation is an important step in establishment of industrial democracy.

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(7) Organization improvement: organizations must constantly improve themselves due to emergence of new ideas regarding productivity, rapidly changing technology & competition from other organizations.

1.4 HRM challenges for Indian banks:

The RBI has already prepared the roadmap for major banking reforms and it is only a matter of time before it is implemented. This roadmap has two distinct phases of change:

(1) In the first phase, foreign banks will be allowed to establish a presence in India through the wholly owned subsidiary route. The markets will be opened up for the acquisitions of weak banks that RBI considers are appropriate for acquisitions.

(2) The second and more encompassing phase that the RBI plans to begin from April 2009 is to allow foreign banks to acquire controlling stakes in privately owned Indian banks. This phase will lay the foundation for open markets.

These major changes will open up a plethora of new opportunities for some Indian banks but it could also sound the death knell for some banks. The success and survival of the banks will depends more and more on people management and only those banks that can manage their human resource effectively will have life in the long run.

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If there is any one singularly important lesson that has been learnt from the process of reforms the world over then that is people are the real strength of the organization and it they who give an organization its competitive advantage.

The quality of HR will be a critical factor in the success of Indian banks especially the public sector banks (PSBs). As a consequence there is an urgent need for overhauling of the entire HR in banks and hence effective HRM has become vital. Banks will need to take a holistic view of HRM for providing qualitative services with minimum cost and time to the public.

The major HRM challenges that confront the Indian banks and the measures that need to be taken are discussed here below. Problem of Redundancy:-

A major problem in many PSBs is that many posts in them have become redundant either due to changes in business procedures or due to the computerization of branches which started two decades back.

Thus a scientific job and role analysis needs to be done to redefine various positions in the bank. It is only then that banks will be able to achieve an improvement in their performance and utilization of manpower. A first step in this direction would be for banks to start negotiating immediately with their unions for effective redeployment of the employees.

Snail Paced Promotions:

A recent study found that the present promotion cycle in PSBs for the serving employees was 11 years. The average age of an employee at different

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scales has revealed that promotion takes place at a late stage in ones career. The study also found that the existing promotion policy is one of the major causes of high levels of dissatisfaction (62%) among the employees.

This mismatch between the aspirations of

the employees &

organizational needs requires immediate attention. There is a urgent need to revamp the current promotion policy and replace it with a much more dynamic one that allows for a fast track growth.

Frequent Transfers:-

The frequent transfers are a major cause of discontentment particularly among officers. This is a serious issue because discontent has a direct impact on employee performance and thus on the banks productivity. The average transfer cycle is 2.5 years and 3.5 years I the case of directly recruited officers and promotee officers respectively.

Banks need to formulate proactive & transparent transfers & placement policies that will allow for a smooth mobility of staff, optimum utilization of HR and achieve cost effectiveness. However, care should be taken to minimize hardships to employees.

Training:-

The way in which a banker performed banking activities no longer exists in many part of the world. The world is witnessing the emergence of the Techno Banker. This is keeping in tune with modern banking gadgets and payment gateways that the Techno savvy Banks currently offers. If PSB employees are to fall in line with peer practice of the industry, then there is an

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urgent need to fine tune their skills and assimilate in them the intricacies of the new functions that are performed.

The focus in banks had shifted towards market orientation, from systems and procedure orientation. Thanks to the cut - throat competition among banks, the present day customers of banks are always demanding for better products and better services. Their demands are continuously increasing and bankers are constantly on the look out for products that maximize the service quality.

Training programs should aim at enhancing the value addition factor to the customers in products dispensed and the services rendered. Relationship Management should be the focus of training programs. It should aim at improving customers services in banks. PSB s needs to start training to their staff in marketing concepts. Service marketing is the area PSB s need to concentrate in order to win over the customers.

Overhauling Performance Appraisal & Reward Systems: A recent study has found that three fourths of the clerical staff and more than 90% of the officers felt that the present PA systems should be changed. Further about 75% of the employees thought that there should be a penalty for non performance and reward for superior performance.

The improvement in the PA system is a major challenge that PSB s face. Designing and implementing an appropriate reward system is an even greater challenge.

Attracting & Retaining Talented Employee:-

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In the face of stiff competition from service industries, private sector and foreign bans (which offer attractive remuneration & better working conditions) the public sector banks have a formidable challenge of attracting and retaining young people with multi dimensional skills and experience. This is more so in the case of staff members with some IT backgrounds and related knowledge.

HR departments of banks need to proactively to look into this area & develop suitable ways for tackling this problem. Perhaps the times ripe now to introduce initiatives such as employees stock options (ESO), quick promotions etc..

Cultural Clashes:-

If Indian banks want to arrive on the global map and compete on global level then they need to develop size. Rather than have a large number of small banks, we need to have a small number of large banks. Thus the need of the hour is consolidation of PSB s. This can be done through mergers of various PSB s.

A challenge that HR managers are very likely to encounter during the consolidation phase is culture clashes. Each PSB has its own unique culture and ways of working and hence confidence building measures prior and after the merger will be critical to ensure that these new marriages survive and prosper.

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1.5 Structure of human resource department:

President / director

Manager

Manager

Manager

Manager

Manager

Recruitment & Selection

Training & Development

Compensatio n & benefits

Employee Welfare

Employee relations

All the managers have to perform the activities assigned to them by the president/director. The most important principle about the organization of the HR dept. is that it should be fit in the needs of its business. There is no best structure to adopt but the choice of the structure should be made on the basis of an analysis of what the organization wants by way of HRM guidance and services.

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Chapter: 2 Human Resources Planning

2.1 Definition:Wendell French defines HRP as the process of assessing the organizations human resource needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, stable work force is employed.

There are three resources that are critical for an organization to be successful and attain its goals are:

(1) Financial resources (money). (2) Physical resources (building and equipment). (3) Human resources (people). While managers pay a great deal of attention in the planning of the first and second resources, human resources are often neglected or taken for granted. This is a terrible mistake because no organization can be successful in the long run without having the right number of people and right kind of people doing the right jobs at the right time. Hence HRP assumes vital importance.

HRP is referred to as Personnel Planning or Manpower planning.

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2.2 What are the objectives/specific goals of HRP?

HR plans need to be based on organizational objectives. In practice, this implies that the HR plan must be derived from organizational objectives. Specific requirements in terms of numbers and characteristics of employees should be derived from the organizational objectives. Organizational objectives are stated by the top management and the role of HRP is to sub serve the overall objectives by ensuring availability and utilization of human resources. For example, if a modernization of the plant is planned by the top management in their strategic planning for the next five years, the human resources department has to start from this objective and plan for human resources and for the modernization, pre-modernization, and post

modernization periods. HR planning must take care of recruitment, selection, training and development to meet the modernization and post modernization as well as for additional recruitment wherever necessary. Separating redundant labor and training and updating the existing labor must also include the human resource planning. Modernization plan is bound to fail unless proper manpower is envisaged to cope with the modernization.

Once the organizational objectives are specified, communicated and understood by all concerned, the HR department must specify its objectives with regard to HR utilization in the organization. They must focus on Ensuring optimum use of human resources. Keeping the organizational workforce to cope with the technological development and modernization. Streamlining uninterrupted supply of workforce to the functional needs of business from time to time.

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Union constraints encountered in HRP and develop policies needed to handle the constraints. Automation of production and operations and what can be done of those displaced. Cutting down surplus, redundant manpower and retraining and redeploying the manpower appropriately. Ensuring a career planning for every employee of the organization and making succession programs. It means that human resource planning must include objectives for accomplishing organizational goals and individual aspirations of the employees.

If the estimated results fall short of the objectives, reasons for failure must be determined through performance evaluation and the defects rectified. Also, the plan or the objective must be revised whenever needed. Once the plan is finalized, efforts must be made to implement it and make periodical evaluation of the results.

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2.3 What are the limitations and challenges of HRP?

Planners face a few challenges while formulating an HRP. The major ones are the following:

1) People question the importance of making HR practices future oriented and the role assigned to HR practitioners in formulation of organizational strategies. Their argument is there are people when needed. Offer attractive packages of benefits to them to quit when you find them in surplus. When the task is so simple, why elaborate time consuming planning for human resources? Surprisingly this perception about HRP is also held by the top management. 2) HR practitioner perceived as experts in handling personal matters, but are not experts in managing business. The personnel plan conceived and formulated by HR practitioners when enmeshed with the organizational plan, might make the overall strategic plan itself defective. 3) HR information often is incompatible with the information used in strategy formulation. Strategic planning efforts have long been oriented towards financial forecasting often to the exclusion of other types of information. Financial forecasting takes precedence over HRP. 4) Conflicts may exist between long term and short term HR needs. For example, there arises a conflict between the pressure to get the work done on time and long term needs, such as preparing people for assuming greater responsibilities. Many managers are of the belief that HR needs can be met immediately because skills are available in the market as long as wages and salaries are competitive. These managers fail to realize that by resorting to hiring or promoting depending on short term needs alone, long term issues are neglected.

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5) There is a conflict between quantitative and qualitative approaches to HRP. Some people view HRP as a numbers game designed to track the flow of people across departments. These people take a strictly quantitative approach to planning. Others take a qualitative approach and focus on individual employee concerns such as promo ability and career development. Best results would accrue if there is a balance between quantitative and qualitative approaches. 6) Non involvement of operating managers renders HRP ineffective. HRP is not strictly an HR department function. Successful planning needs a coordinated effort on the part of operating mangers and HR personnel.

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2.4 The Human Resources Planning Process:-

Analysis of Organizational Plans and Objectives Forecasting Human Resources Requirements Assessment of Supply of Human Resources Estimating Manpower Gaps

Action Planning

Monitoring and Control

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Chapter: 3 Recruitment
3.1 Definition:DeCenzo and Robbins describe Recruitment as the process discovering potential candidates for actual or anticipating organizational vacancies. It is a linking activity aimed at bringing together those with jobs to fill and those seeking jobs. According to Edwin Flippo, recruitment is the process of searching for perspective employees and stimulating and encouraging them to apply for jobs in an organization

A number of factors such as the size of the organization the employment conditions in the community, reputation of the organization, working conditions and salary and benefits offered by the organization affect the recruitment process.

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3.2 Sources of Recruitment:The various sources of recruitment may be broadly classified in to two categories: Internal and external sources. Some organizations draw their human resources internally i.e. from within the organization while others draw externally. Internal sources of Recruitment:-

The internal sources of recruitment focus on finding qualified applications within the organization. The internal sources of the recruitment may be of the following type:

1) Promotions:Vacancy in the organization may be filled by promotion qualified and experienced employees. Promotion refers to shifting an employee to a higher position carrying higher status, responsibilities and pays. Promotions may be based on the performance or seniority depending on the organizations promotional policies. 2) Transfers:Another common way of filling up vacancies is through internal transfers. An existing employee who is experienced and capable is transferred from one department on the organization to another department. In transfers the shifting of the employee occurs without any major changes in his status and responsibilities. 3) Job Postings (Internal advertisements):A popular method of finding applicants is through job posting or internal advertisements. Job posting involves announcing job opening to all current employees through the company newsletters. Some organizations

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have developed the computerized job posting systems so that employees can obtain information on their computer screens. Job postings carry information about the posting and the nature of the position and qualifications needed, and any employee who is interested in the job may apply for the same.

4) Recall of retired employees:When an organization is not able to find a suitable candidate for a vacancy, former employees of the organization who have retired or had quit the organization.

5) Employee referrals:Another way to find out applicants within the organization is through employee referrals. Informal communication among the managers may lead the discovery of a good candidate for the job. Employee referrals may be for candidates within the organization as well as outside the organization.

6) Skills inventories:Many firms have developed computerized skills inventories of their employee. Information on every employees skills, education, work history, and other factors is stored in the organizations data base.

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External sources of recruitment:Organizations turn to external sources when the internal sources fall short. New organizations rely on external sources to meet their needs. Even well established organizations turn to external sources when they dont have proper candidates or in order to new blood in organization.

The external sources are:-

1) Campus recruitment:Educational and training institutes like the IIMs, IITs and other professional colleges are a good source of recruitment qualified and trained personnel. Many educational institutes have placements departments who forward the names of graduate students to interested organizations.

2) Advertisement:Ads in journals newspapers and magazines with wide circulation are a very popular source of recruitment. However care should be taken in preparing the advertisement so that only qualified applicants respond. The advantage of this method is that a single advertisement can reach millions of potential recruits. The cost per person is very law. As more and more people surf the internet, the internet as a medium is becoming increasingly popular.

3) Employment agencies:Private consulting firms carry out recruiting functions on behalf of organizations. Firms of such kinds are also referred to as head hunting firms. These firms carry out all the functions of recruitment and selection and provide

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organization with the candidates as per their requirements. The employees agencies charge a fee for their services.

4) Employee recommendation:A very good external source is a recommendation from current employee. An employee will rarely recommend someone unless he is certain that the individual will perform adequately. Because the recommendation reflects the recommender and his reputation is at stake.

5) Professional bodies:Professional bodies like ICA, ICS maintain the record of qualified persons in their specialized fields. Organizations can approach such bodies to meet their needs.

6) Deputation:In this the services of an experienced employee of another organization are borrowed for a fixed period of time. This source is usually for senior positions. After the service the person on deputation returns to the lender organization.

7) Poaching:It involves attracting talented persons and competent persons from rival organizations by offering the better terms and conditions of employment with regard to salary, designations, working conditions additional perks and benefits.

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Chapter 4 Selection

4.1 Definitions:-

Selection is the process of choosing the most suitable person/s out of all the applicants. It is the process of choosing individuals possessing the required qualifications and skills to perform the job successfully. Del Yoder defines selection asthe process in which candidates for employment are divided in to two classes those who are to be offered employment and those who are not. Thomas Stone Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success on the job.

Selection involves screening of candidates. Screening is a process of reducing the number of applicants to a few by way of rejecting the candidates who are not found eligible as per the qualification.

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4.2 The selection procedure:-

Preliminary interview

Application blank

Selection test

Employment interview

Medical examinations

Reference checks

Final selection

Organizations make large investments to get the right kind of people; hence, a sound selection procedure is necessary.

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The objective of the selection procedure is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in that job.

The various steps in the procedure are:

(1) Preliminary interview:The objective of this interview is to discard those candidates who are totally unqualified for the job. Only suitable candidates are retained for further screening. This interview saves time and efforts of both the organization and the candidate. The preliminary interview is the first contact of an individual with the organization. Hence it is vital that the staffs who are involved in this step are extremely receptive and polite with the rejected candidates.

(2) Applicable blanks:The candidates are supplied a blank specially prepared application from for filling it with information relating to education, age, experience, training, hobbies, etc...

This form has several benefits:

(1) It helps to eliminate those candidates who are lacking in education and experience. (2) It helps in formulation questions for the interview. (3) Information obtained from application can be used for future reference. (3) Selection test:-

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A variety of psychological tests are used to obtain information about various aspects of an individuals behavior, performance and attitudes. Use of such tests is becoming popular.

These tests help in:

(1) Identification of differences among individuals. (2) Identification of the maximum and minimum potential of the candidates. (3) Identification of skills abilities talents in the candidate.

(4) Employment interview:It gives the employer and employee an opportunity to meet each other. The employment interview serves three purposes: (1) It is an opportunity to obtain additional information about the candidate and determine his suitability for the job. (2) It provides information to the candidate about the organization, the specific job for which he has applied and personnel policies. (3) It helps to establish a friendly relationship with the candidate and motivate suitable candidate to join the firm.

(5) Medical examination:then applicants are sent for medical examination. It is important for following reasons: (1) It helps whether the employee is mentally & physically fit for the job. (2) It prevents employment of employees suffering from contagious diseases.

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(3) It saves expenditure that the organization may have to incur for medical treatment of the candidate.

(6) reference checks: Applicants are frequently asked to provide the names and address of two or more persons who know them well. These persons are commonly referred to as referees. These persons mat be previous employers, heads of educational institutes. The organization contacts the referees to know more about the candidates character, skills, etc. the feedback of referees influence the selection of the candidate.

(7) Final selection: The candidates who have cleared all the above stages are recommended by HR dept. to the concerned department for their final approval.

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Chapter: 5 Induction
When a new employee joins the organization, the few first days are one of a great uncertainty. Even the calmest and most competent employee feels little

nervous, anxious and insecure. This is because he is unfamiliar with the new surroundings. Hence, most organizations offer some kind of induction program to help new employees.

5.1 Definition:Michael Armstrong defines induction as the process of receiving and welcoming employees when they first join the company and giving them the basic information they need to settle dawn quickly and happily & star the work.

According to Armstrong induction has five main aims:

(1) To put the employee at ease. (2) To create employee interest in the job and organization. (3) To provide basic information about working conditions. (4) To indicate the standards of performance and behavior expected from the employee. (5) To tell the employee about training arrangements and how he or she can progress in the company.

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Importance of induction:-

Induction is extremely important as a new worker often finds himself completely at sea in the new workplace.

5.2 Induction has following aims:

(1) Smooth entry:To make the entry of the new employee in to the organization a smooth one as initially everything is strange and unfamiliar to him.

(2) Favorable attitude: To establish a favorable attitude to the company in the mind of the new employee so that he will stay in the organization.

(3) Quick adjustment: To obtain effective output from the new employee in the shortest possible time.

(4) Reduce employee turnover: Research has found that employees are far more likely to resign during their first few months after the joining the organization. Induction reduces the likelihood of employees leaving the organization quickly.

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(5) Increase commitment: A proper induction makes the employee feel that the organization is worth working for. This increase employee commitment as he identifies himself with the organization wants to stay with it and is prepared to work hard on behalf of the organization.

(6) Understand organizational norms: Induction programs convey to the new employee what the organization expects from him in terms of behavioral norms and the values that he should uphold. Induction provides an opportunity to inform people of the way things are done here.

(7) Develop relations: Induction helps to foster a close and cordial relationship between the newcomers and the old employees and their supervisors.

5.3 Contents and conduction of induction programs:

Some organizations conduct informal orientation programs where the immediate supervisor makes the introductions and provides the necessary information.

Large organizations develop formal orientation programs. Such an orientation program consists of a tour of the plant, office a talk on the history and background of the organization etc..

The contents are usually from the following different areas:

(1) Information about the organization:-

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Its products/services mission and core values.

(2) Learning arrangements and opportunities: Formal training self management personal developments plan.

(3) Performance management process: How they work and part people play.

(4) Health and safety: Occupational health, prevention of injuries and accident, protective clothing. Basic safety rules.

(5) Conditions of services: Hours, holidays, leave, sick pay, arrangements, maternity leave.

(6) Pay and benefits: Arrangements for paying salaries or wages the pay structure allowance, details of performance, skilled base pat schemes, details of profits, pension and life or medical insurance schemes.

(7) Policies, procedures and working arrangements: Equal opportunities policies, rules regarding sexual and racial harassment and bullying, no smoking arrangements.

Lectures, film slides, group seminars, and employee handbooks are some of the way by which the above mentioned contents may be presented.

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A typical orientation programs usually consist of three steps:

(1) General information: In this step information about the history and operations of the organization is provided. The objective is to build pride and interest about the organization in the new employee.

(2) Specific orientation: Here specific information relating to the job is given by the supervisor. The employee is introduced to other employees, Shawn his place of work and informed of the location of the canteen etc.. (3) Follow up: This part of the orientation program is concerned with understanding the employees feelings and to remove difficulties faced by him through personal talks, guidance and counseling.

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5.4 Induction at Canara Bank:

Canara bank has recognized the importance of induction. Evidence of this can be seen in the HRD book of the bank. The handbook has a chapter that advises managers on the objectives of induction and the systems to be followed. Given here below is a summarized extract from the hand book.

Entry Interview for effective Induction of new Entrant:

Objectives: To ensure introduction of the new entrant to the entrant to the institution, its culture, tradition, ethos and work ethics. To have a formal interaction between the head of the branch and the new entrant in order to have introduction to the job and colleagues. To provide psychologically assurance that he will be looked after and cared in the new place. Help the employee to shed apprehension, if any, and feel free in the environment. To initiate the socialization process of the employee in the organization on a positive note. So that the process of emotional interaction is fast and smooth.

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Chapter 6 Training & Development

An organization cannot function effectively when its employees are not trained well. Lack of training is often the cause of:(1) Poor productivity (2) Errors and wastages (3) Unsafe working practices and (4) Dissatisfaction at work. 6.1 Definition. Training is basically the management of learning. The objective of training and development is to raise the level of performance in one or more aspects. This is achieved either by providing new knowledge and information relevant to a job or by teaching new skills or by imbibing an individual with new attitudes, values, motives and other personality characteristics. According to Edwin Flippo, training is the act of increasing the knowledge and skill of an employee for doing a particular job. Goldstein describes the training process as the systematic acquisition of attitudes, concepts, knowledge, roles, or skills that result in improved performance at work. Training prepares employees to perform their present job even better and more efficiently. It also prepares the employee for higher positions with increased responsibilities.

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6.2 Importance of training.

Organizational training programs are very costly. When an employee is being trained, not only is the organization spending money on him but it is also losing in terms of manpower as the employee is away from work.. However despite this loss, good organizations spend a considering amount of time, effort and money to train their employees. They feel that training of employees is an investment which will reap benefits and profits for the organization in the future. The major benefits are:(1) Higher Productivity and Profits:-. Training improves the knowledge and skills of employees and Hence leads to greater efficiency in the work place. The more efficient an employee, the higher will be the production which in turn will contribute to greater profits for the organization

(2) Optimal use of Resources:Well trained employees are able to make optimal use of their Resources (manpower, materials machinery and capital).this helps in reducing cost and time wastages.

(3) Job satisfaction: Employees who have received training and know their job well are a confident lot. This increases their morale and leads to higher job satisfaction. (4) Safety: Training reduces errors and accidents on the job by making the employees more competent and able at their work. Training helps to improve safety standards at work.

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(5) Reduces Stress:An employee who knows his job well is less likely to experience stress. Besides training in stress and time management enable the employee to cope with frustration and tension. (6) Career Development:Training prepares the employees for higher positions by developing the necessary skills and attitudes. It improves the employees prospects for advancement and promotion within the organization. Training prepares the employee for opportunities that will come during his career.

6.3 The Training Process:-

Training programs are a costly and a time consuming process. Hence training programs need to be planned very carefully and then executed. Most organizational training programs proceed along the following lines:-

(1) Identifying training needs (2) Determining training objectives (3) Designing the training program (4) Implementation of the training program. Identifying Training Needs:

Training needs are usually assessed in the following ways:(1) Organizational Analysis: Organizational analysis focuses on identifying where training Should be given in the organization. It suggests where in the organization training is needed.

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Training needs at the organizational level is determined using the following information:

a) Organizational goals and objectives b) Manpower requirements c) Skills availability d) Introduction of new technology / products/ services.

Organizational analysis ensures that the training programs are tied to the organizations strategy and mission. Organizational analysis also involves the examination of factors that facilitate or hinder the transfer of skills from training to the job. (2) Task Analysis:Task analysis is also referred to as operations or job analysis. It is related to the operations or work activities that an employee has to

perform on the job and the skills, knowledge and abilities required to perform it. Task analysis focuses on the job, rather then on the individual doing the job. It involves identification of tasks that need to be performed, how they should be performed, and what is needed in terms of knowledge, skill and attitude in order to perform the given job efficiently.

(3) Person Analysis:Person analysis provides information regarding who in the organization needs to be trained and what kind of training should be given. The focus is on how well each employee is performing key tasks.

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Person analysis is commonly done on the basis of performance appraisal reports. Performance appraisal is commonly done on the basis of performance appraisal reports. Performance appraisal helps in identifying the strengths and weaknesses of the employees. Person analysis also caters to the future needs of the organizations. Organizations can send employees for training programs to develop and acquire knowledge, and develop skills and abilities that may not be needed for the current job but are required at the next level in the organization. Determining Training Objectives: The training objectives usually include matters such as:

(1) The specific skills and knowledge to be imparted along with the attitudes to be cultivated. (2) The employees who are to be trained. (3) The number of people to be trained and from which unit. (4) The time period within which the training is to be given. (5) The desired outcome on completion of training. (6) The training budget. Designing the Training Program:

The training design covers matters such as:(1) The contents of the training course. (2) The training methods and techniques to be used. (3) Whether training is to be given on the on the job or off the job. (4) The place where training will be given. (5) The learning principles on which the training program will be based.

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(6) The selection of the trainers. The trainers could be personnel from the organization or they could be people specially invited from outside the organization. Implementation of the Training Program: In this step the training program is actually carried out. The training design developed in step three is implemented and the trainees undergo training under the watchful eyes of the trainers.

Program implementation involves:-

(1) Organizing training and other facilities. (2) Scheduling the training programme. (3) Conducting the program (4) Monitoring the progress of the trainees.

Evaluation of Training Program: (1) To determine whether the training program met its objectives. (2) To identify strengths and weaknesses in the training process. (3) To calculate the cost / benefit ratio of the training program. (4) To determine who benefited most from the training program and why. (5) To establish a data base for future decisions about the training program.

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6.4 Training method for management development:-

On the job training:

(1) Coaching: In coaching a superior guides and instructs a junior manager. He trains the junior in the knowledge and skills required to do the job. This method emphasis on learning by doing.

In this method, the superior serves as a coach who helps the trainee grow and improve his performance on a day to day basis. The coach sets challenging goals for the trainee & informs him what is to bi done and evaluates the trainees progress toward the goal.

The advantages of this method are:

(1) The problem of transfer of learning from theory to practice is minimized as the trainee learns by doing. (2) Training of this form tends to be individualized. (3) Every executive can coach his subordinate even if a management development programs does not exist. (4) Coaching is very useful for the orientation of new managers and for developing operative skills.

The drawbacks of this method are:

(1) The superior may be a good manager but not a good teacher and guide.

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(2) The trainee learns the customary practices and managerial styles followed in the organization. (3) The coach may not have sufficient time to guide the trainee as he has to carry out daily activities too. This may result in the neglect of the trainee.

(2) Job rotation: It is a popular management training method. It involves movement or transfer of managers from one position to another on a planned basis. They are moved from one managerial position to another according to a rotation schedule. Job rotation is also called as position rotation and cross training. The aim job rotation is to broaden the knowledge, skills, and outlook of managers. It exposes the managers to different jobs and departments to acquaint them with all the facets of the organization.

Advantages:

(1) Reduces monotony: it allows managers to diversify their skills and reduce the monotony and boredom that results from performing the same job over years.

(2) Greater coordination: Job rotation facilitates interdepartmental cooperation and

coordination. It makes managers aware of the intricacies and interrelationships of the different activities in the organization.

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(3) Flexibility: Job rotation widens the skills of the managers thus it gives the management greater flexibility in scheduling work, adapting to changes and filling vacancies.

Drawbacks:

(1) Disruption of work: Job rotation causes disturbance in establishment operations. It may disrupt the smooth functioning if the organization. (2) Higher costs: Job rotation increases costs as moving a manager to a new position just as he is settling down at his current job reduces the productive contribution that he makes to the organization.

(3) Imbalance: Extensive job rotation may result in a vast number of trainees with limited knowledge and experience being situated in a position or department. Such imbalances may disrupt the functioning of the department.

(4) Understudy assignments: In this method, the trainees work directly under individuals whom they are likely to replace. The objective of understudy assignments is to train as employee to succeed in a specific position. The employee may work as a manager to a superior who trains him to shoulder his responsibilities in due course.

(5) Committee assignments:

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Organizations frequently set up committees and panels to investigate and study various problems controlling of the companies. Trainees are often placed in such committees so that thy get a feel and develop better understanding of the various issues facing the organization.

(6) Project assignments: In this method a number of trainee executives are put together to work on a project that is closely related to their work on a project that is closely related to their work or department, the group called project team or task force studies the problem and find appropriate solutions. In this method the trainees learn the procedure and techniques involved in the particular work and the interrelationships between their department and other departments.

(7) Multiple Management: This was developed by Charles P. McCormic in the USA. In this method a junior board of young executives is constituted. This board is given the authority to discuss ant problem that the senior board would discuss. They discuss a wide variety of subjects and make recommendations to the board directors.

Off the job training methods:

(1) Lecture method: it is a prepared presentation of knowledge, view points I order to make the learners accept what the lecture says. The key word is prepared. Presentation of the lectures will spell the difference between acceptance or rejection, interest or boredom.

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The biggest advantage of the lecture method is that it is possible to give knowledge to a large number of trainees at the same time. Hence it is economical in nature. This method is very good to introduce the trainees to new subject or when subject matter is general in nature.

The drawback of this method is that it does not allow active participation of the trainees. However this limitation can be overcome by having a question and answer session at the end of the lecture.

This method is not very effective in skill acquisition. It is not effective in teaching people how to interact with others, how to get along with other people. One has to learn these things by doing them.

(2) Conference: This method is commonly used when the number of trainees is small. The conference method encourages active participation and leads to greater two way communication. The conference method permits the participants to pool their ideas together, discuss the problem from all points of view, and ask questions. The effectiveness of this method is strongly influenced by the skills and personality of the trainer. The conference method applies the learning principles of motivation and feedback in training situations.

(3) The case study method: In case studies, the trainees come face to face with business situations similar to the ones they are likely to handle future. Case studies

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consist of problem situations to which the group has to find the best possible solution. Case studies are extremely popular in executive training programs. In a typical case study a complex problem or case of the kind daily faced by managers and executives is presented to the trainees prior to a general meeting. The trainees are expected to find additional information. When they meet together as a group, each member interprets the problem

and offers a solution. Then a systematic discussion takes place. Different views are exchange; the trainees come to different approaches to solve the problem. The group leader does not suggest an answer. The group as a whole must reach an agreement and resolve the problem.

(4) Role Playing: The primary objective of role playing method is to teach the participants empathy. Empathy means trying to understand other people, trying to appreciate their difficulties and looking at problems from the persons point of view.

In role playing, management trainees pretend to act out a particular role, displaying whatever behaviors they believe are appropriate in a given situation. For example they may be asked to imagine themselves to be a boss who must discuss the poor performance appraisal with a subordinate. They act out these situations in front of a group of trainees and instructors, who offer comments on their performance. Sometime the trainee is asked to play the role of supervisor and then the roles are reserved and the same trainee is asked to play the role of an employee. Sessions can be videotaped for later analysis.

Role playing is particularly useful in certain areas in which understanding the other person is very important. The specific areas are:

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(1) Interviewing (2) Counseling (3) Selling (4) Supervising (5) Evaluating.

Behavior role playing is an advanced form of role playing. In this method the trainee watches a model enact a role emphasizing certain key points and principles. The trainee then acts out the role himself and provided feedback bye the trainer.

6.5 Training for Managerial Effectiveness in Banks:-

Introduction In todays banking environment, nothing is more important than customer satisfaction. There is a metamorphosis in the appearance and

functioning of the banks, which are slowly transforming from the traditional acceptance of deposit for lending purposes to a financial super-market. The growing needs of the customers make the task of managing change and innovating new products and services a prime function for a bank to maintain its position in an increasingly competitive environment. With the advent of economic reforms, the public Sector Banks, which have been sheltered under stable Government policy over the past 25 years, are now facing competition. Thinking in terms of the future and producing the right mix of services to attract all customers has become one of the prime objectives of a bank. The

executive of a bank today have to imbibe changes into the system, implement them well without delay and at the same time be able to project a stable

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outlook. It is in this context that training and development of managers in a bank becomes vital.

In India, today we have Public Sector Banks, in whom the Government or the Reserve Bank of India holds controlling interest, Private Sector Banks and Foreign Banks. The role of foreign banks which have hitherto been limited to metropolitan centre and focused on high value personal loans and trade finance have undergone a sea-change at present. The growing World Wide Web has offered them an opportunity to function from remote locations. The Private Sector Banks that have concentrated their operations in a particular geographical zone have also grabbed this opportunity to increase the number of customers. The public sector banks which have for more than 2 decades been the providers of banking services at remote locations across the length and breadth of the country and who had the solace of Governmental support for their acts are today faced with increased pressure from all avenues for improving services and organizational efficiency. Though it is true that public sector banks are overstaffed and return on capital deployed is poor, it should be viewed from a perspective, which incorporates the effect of Government policy and directives of the past years. The task of managing change and proving effective is more challenging for the executives and managers of public sector banks today than that of other banks. This article focuses on training for effectiveness of this class of managers.

The scenario

With rapid globalization of products and services, economic thinking is primarily market driven with transparent regulatory authorities, than dictated by the Government. The market opportunities are by definition limitless provided

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one invests in the right type of people and product development. The risk of failure today, however appears to be much higher than that would have been the case a few decades ago. Though a perspective plan and a long-range plan are not new terminology in a bank and most of the managers and executives are involved in the process, nothing much had been done to improve organizational development to meet future goals. As a rule most of the managers react to events as and when they arise than to foresee and plan courses of action. There is a training system in place in most of the banks and the training centers are mostly involved in imparting procedural inputs rather than developing an individual as a whole to emerge well in changing environments and unforeseen circumstances. In a Bank, where most of the instructions are documented and a defined set of rules are provided for almost all types of transactions, the ability of the individual to think beyond, and at the same time not compromise on the security features assumes enormous importance in an ever-changing atmosphere.

Before embarking into any suggestion for executive development in Banks the following points have to be taken into account:-

(i) The traditional idea of management in Indian banks, which believes that rigid Organizational structure, express delegation of authority and an unpardonable attitude towards errors have to a great extent hampered the growth of organizational effectiveness. Seniority and age are pre-dominant factors in determining the place of a person in the heirchy

(ii) Rapid advancement in technology and increased use of computers and IT in banking operations have to be technology savvy to understand and implement IT products to meet the ever-growing needs of customers.

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(iii) Liberalization of economic policies and decreased support from the Government has to be taken into account. The norms for asset classification increased capital and increased adequacy norms provisioning requirements, and changing statutory in mind.

requirements should be borne

(iv)

Progressive dis-intermediation of banking services with more

customers investing directly and through mutual funds have driven banks to rely more on fee-based income rather than fund-based income. It is pertinent to remember that despite this thinking fundis the major provider to banks income today.

based income

(v) Increased use of cheques and cards and increased disuse of currency transactions would require banks to reorient services. The frontline of the bank which is typically an array of clerical and cash counters will witness a change in the coming years.

(vi) Strength of network and size of capital and working funds dictates the policy and approach of the bank. Todays PSB s have fairly large number of branches distributed over a vast area and have huge working funds mobilized from the public.

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6.6 The training needs in banks:-

The points mentioned suggest that there is an immediate need for Empowerment of staff Upgrading managerial competence. Understanding employee needs. Continues up gradation of knowledge and skills. Empowerment of staff:-

Empowerment is simply to delegate the authority to make decisions that belonged to superior officers. There is no escape from the simple truth that the strength of any organization lies in its human resources and they have to be used effectively. It should also be noted that today 65 70% of the overheads of any PSB relates to employees salaries and benefits.

The most effective way to motivate employees is to encourage them to get results. Given sufficient freedom most will perform. Depending on the outcome employees may be encouraged to pursue further tasks with more delegation. Loyalty to the organization is a much expected quality in a manager by his subordinates and it would be in the interest of any organization to develop a deep sense of loyalty o the organization in its managers.

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Encouraging new and innovative ideas are a way to bring out the participation of the employees. Employees should be given adequate freedom to experiment. A good job done should be recognized and rewarded. Reasons for poor performance of a team should be analyzed and corrective steps should be taken.

Upgrading managerial competence:-

managers are very often leaders who are looked upon by banks to achieve its goals. Therefore upgrading managerial competence is of prime importance. As managers develop into quality motivators empowering their subordinates to perform they also automatically increase their competence to be managers in the future. In this context it is important to note that the development of a handful of personnel endowed with skill into superior class will not help the organization in the long run. Upgrading of the middle group which constitutes more than 50% of the working people, should be aimed at to ensure stability and growth. Understanding employee needs:-

one does not perform to full capacity utill and unless all his needs are met. Management thinker have recognized the relationships of need fulfillment to motivation and performance of employees. Recognizing employee neds and fulfilling them should be the function of the manager.

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6.7 Training at SBI:SBI is an Indias largest PSB. It is the second larger employer of people after the Indian railways. The bank currently employees over 2.15 lakhs personnel in various coders. SBI has a separate HRD division which looks in to the training interests of the bank.

The SBI training philosophy is proactive, planned and continues. It is an integral part of organizational development. It seeks to impart knowledge, improve skills and reorient attitudes for individual growth and organizational effectiveness.

The HRD mission of SBI is to enable every individual to realize and activate his potential, as to contribute to the achievement of the banks goals and derive satisfaction there from.

The training wing in SBI consists of nearly 65 training centers established at various places in the country. There are 3 colleges one each specialized in agricultural development, information and technology and general banking.

At the apex level an academy has been established at Gurgaon near Delhi. This academy provides training to the top management of SBI also to officials from other banks. Every training center is equipped with modern infrastructure facilities and has a suitability trained faculty.

The management of training system is overseen by the Chief General Manager at the Central Office of the bank in Mumbai.

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At each training center, various programs are conducted through out the year for employees in various cadres. The programs are designed in such a manner so as to help develop the employees ability to work more efficiently and without mistakes. This ultimately benefits the employees as well as institution.

The training programs may classified in to three main divisions:-

(1) Core program (2) Role Related Program. (3) Factional Program.

These programs are developed for all categories employees. Each program is designed keeping in mind the following details:

(1) Duration (2) Target group (3) Eligibility (4) Objectives.

6.8 The following is an example of a program designed for officers: Duration 24 days 4 weeks (88 sessions)

Target group

Probationary/trainee officers

Eligibility Objectives

Recently appointed/promoted probationary trainee officers. (1) To increase their awareness of the changing economic environment and the role of the banking sector in it.

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(2) To enable them to understand SBIs organizational structure, functions, vision, mission, values and HRD philosophy. (3) To introduce them to banks system and procedures. (4) To familiarize the trainees with computers.

Program Design:Subject No. session. (1) Inauguration & formalities (2) Human Resources Management (3) banking System & State Bank (4) Banking Laws (5) Deposits & miscellaneous business (6) Banks system of accounts (7) computer appreciation (8) Customer Orientation (9) Offices Languages Act (10) Interface with Functionaries Branch /HO s (11) Dummy Banking (12) Educational Tour (13) Exit point test (14) Valediction Total sessions 1 2 4 8 12 18 22 8 1 2 4 4 1 1 88 of

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Chapter 7 Transfer & Promotions

Reshuffle of human resources is essential for the smooth and efficient management of the organization. It also serves the broader interests of the organization. Hence such reshuffles popularly known as job transfers have become very common in modern business organizations.

7.1 Definitions:Yoder and associates have defined job transfer as a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties responsibilities, skills, needed or compensation.

A transfer thus involves a change in the job (accompanied by a change in the place of the job) of the employee without a change in responsibility or remuneration.

Transfers may be initiated either by the company or the employee. A company may initiate transfer to place employees in positions where they are likely to be more effective. Similarly, employees may initiate transfers to locations where they are likely to get greater satisfaction.

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7.2 Transfer policy:-

Every organization should have a just and impartial policy concerning the transfers of employees. It is important that every employee knows the policy.

A good transfer policy should satisfy the following conditions:

(1)

It

should

state

the

types

of

transfers

(departmental

or

interdepartmental) and the circumstances under which transfers will be made. (2) The person/s that have the authority to order transfers. Usually transfers in each department are handled by the person in charge of that department. The HR dept. usually, has a big say in transfers. (3) The effect of transfer on pay and seniority should be clearly mentioned. (4) The facilities available to transferred employee should be clearly mentioned. (5) The transfer policy should state the conditions under which personal requests of the employees for transfer will be entertained (6) All transfers decisions should be communicated to the employee in writing.

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7.3 Types of transfers:-

Employee transfer should be classified in to three types based on its purpose:

(1) Transfers that are affected for the training and development of the employees. (2) Transfers made for adjustment of varying volumes within the organization. (3) Transfers designed to correct the problem of poor employee placement.

The common types of transfers are:

(1) Production transfers: When there is excess manpower in one department or branch in the organization. They are transferred to other departments or branches in order to avoid lay off and stabilize employment.

(2) Replacement transfers: These kinds of transfers are applied for the protection of senior or long serving employees. Such transfers are made when the operations of the organizations are declining and hence a long standing employee replaces a junior or new employee.

(3) Shift transfers:These are routine in industries where work is in progress for 24 hrs. or in three shifts. Such transfers are usually affected on a rotation basis

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but they are also being affected for personals reasons of an employee such as marriage, child - care etc

(4) Remedial transfers: These are effected to correct the wrong placement of the employee or to shift an in efficient employee who is not carrying out his job satisfactorily. The wrongly placed employee is placed in a more suitable job. Such transfers protect the interest of the employees.

(5) Penal transfers: The management may transfer an employee from one position to another as punishment for undesirable acts performed by him.

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7.4 Transfers in banks:-

In the public sectors (PSBs0, the transfers of officers in the junior management and senior management grades are governed by government regulations. The exact nature of these regulations may vary from one PSB to another but it has to within the broad framework of government guidelines.

The main objectives of transfers in PSB s are: To enrich the work experience of officers. Transfers will expose officers to different work environment as well as different facets of the banks business. The officers service regulations (OSR) makes it mandatory for an officers to serve for two years in a rural branch and three years in a semi urban branch to eligible for promotions. Transfers help the bank to meet administrative requirement of filling vacancies and effecting postings on promotion.

The following is a brief summary of some of the rules and regulations that govern the transfers of officers in one of Indias leading public sector banks:

1. Every officer is liable for transfer to any office or branch of the bank or to any place in India. 2. In case of administrative exigencies the bank has the right to affect any transfers whether or not in conformity with transfer guidelines. 3. Transfers may take at the regional, zonal or inter-regional level.

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4. The exact nature of what constitute a region or zone may vary from one PSB to another PSB and is decided by the bank on based on its business policies and strategies. 5. Inter region transfers are usually decided by the central office. 6. transfers within administrative regions are usually decided by the regional heads 7. The normal tenure /term of an officer are 3 to 5 years. However for specialized officers this would be 5 years. 8. No officer is to be transferred before the completion of normal term of at least 3 years. 9. An extension beyond 5 years is considered only in exceptional cases. Even in such cases the maximum extension is of 1 year. 10. For transferring an officer before completion of the minimum terms, reasons should be recorded and informed to the central office. 11. Request transfers on the grounds of extreme hardship would be considered on the merits of each case. The final decision is dependent on the transfer history, reason for request and performance of the officer at the place of posting. 12. Representation, if any should be submitted within one week of receipts of the order. The representations are examined by a committee at the central office and a decision is made. The decision of the committee is a final and further correspondence on the matter is entertained.

While executing transfers, the concerned authorities have to ensure that:

1. The transfers have been affected as per guidelines/directives received from the central office. 2. There is uniformity in application of norms. 3. Mismatch of grade scale is avoided.

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4. Sensitive posts like that of branch managers, lead bank officers are not kept vacant. 5. Completion of rural and semi urban service norms. 6. Officers who have completed 55 years of age or more are posted at places of minimum inconvenience. However the final decision would depend on: organizational needs Suitability of the officers for the post in question. The transfers history and past performance of the officers.

7. Lady Officers are given opportunity to intimate 3 choices places within the transfer region/ transfer zone applicable and their postings would be finalized taking into consideration the preferences intimated. 8. Physically handicapped officers are transferred to places of minimum inconvenience. The final decision is made in consultation with a medical practitioner and chief liaison officer for physically handicapped employees.

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Promotions:-

Promotion refers to advancement of an employee to a higher post carrying greater responsibilities, higher status and better salary. Promotion puts an employee or executive on a career path which goes upward.

On being promoted the duties and responsibilities increase.

7.5 Definitions: According to Scott and Clothier a promotion is a transfer of an employee to a job which pays more money or one that carries some preferred status. In the opinion of Wendell French a promotion is a type of transfer involving the reassignment of an employee to a position that is likely to offer higher pay and greater responsibilities, privileges, and potential responsibilities.

Generally when an employee is assigned to higher level job with more money pay and powers he is said to be promoted.

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7.6 Promotion procedure:-

Chairman and managing director Executive director Scale (vii): general manager

Scale (vi): Deputy General Manager Scale (v): assistant general manager Scale (iv): divisional manager Scale (iii): senior manager Scale (ii): manager Scale (i): officer

Special assistant Clerk

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7.7 Bases of promotion:-

Organizations adopt a variety of criteria for promoting employees. Each criterion has its own advantages and disadvantages.

Promotions can be made on the basis of seniority or merit or a combination of both.

(1) Promotion based on seniority: Seniority implies relative length of service in the organization. Seniority is described as the principle that an employees relative length of service in an organization is a factor in determining his employment rights and job opportunities in the organization.

Promotional systems that are based on seniority place a premium on length of service and job experience, that is, those employees who joined the organization first should be the first choice for promotions.

The use of seniority as the bases of promotion is based on the assumption that the longer a person does a job, the more he learns from it.

Merits of using seniority:

(1) Simplicity: It is easy to measure the length of service and thereby the seniority of an employee. This method is simple to understand and operate.

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(2) Objectivity: Length of service is an objective criterion and hence there is no scope for favoritism. It creates a sense of security among employees and avoids conflicts arising from promotion decisions.

(3) Reward:Granting promotions on the basis of seniority serves as a reward to employees for their loyalty.

(4) Union approval:This system of promotion has the support of trade unions. Hence it avoids disputes and promotes cordial relations between the management and the union.

(5) Reduces employee turn over: Seniority based promotions reduces employee turnover as every employee feels that he has a chance of being promoted provided he remains in the organization.

Demerits:-

(1) Faulty assumption:There is no guarantee that the length of service will result in an improvement in the employees ability. The oldest is not always the ablest.

(2) Ignores performance:

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This system ignores the performance and potential of an employee. There is no recognition of the hard work and efforts put in by the employee.

(3) Efficiency suffers: The efficiency of the organization suffers as the employees have no incentive to improve their performance.

(4) Demotivating: A promotional system that takes in to account only the length of service and overlooks performance kills the ambition and zeal of young and hard working employees.

(2) Promotions based on merits:-

This system of promotion takes in to account the knowledge, skills, and performance of an employee.

Merits:

(1) Enhances Efficiency:Organizational efficiency improves when it recognizes talent and performance.

(2) Motivates:

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Merit encourages young and hard working employee to continue working for the organization.

Demerits:

(1) Subjective: Determining merit is often difficult and involves subjective judgments. Besides merit emphasizes current performance and often overlooks potential for future performance.

(2) Favoritism: There is every chance of partiality when merit is used, the manager may promote those employees whom he likes than the best employees.

(3) Insecurity: Senior employees feel insecure when younger colleagues are promoted over them. (3) Promotion based on seniority cum- Merit:

As both seniority and merit based systems of promotions have plus and minus points, much organization use a promotional system based on a combination of seniority and merit.

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7.8 Promotion policies:The main characteristics of a good promotion policy are as follows:

(1) Policy Statement: A sound promotion policy has a policy statement. It is a statement of the ratio of internal promotions to external recruitments at each level. The method and procedure of selection, and the qualification desired.

(2) Basis of promotions: The basis of promotion must be clearly specified. The weight age to seniority and merit must be clearly stated. Ideally, an organization should try to strike a balance between seniority, merit and future potential of the employee.

(3) Communication policy: The organization should communicate its promotion policy in writing to the employees and the unions. If the organization is secretive about its promotion police, employees will become suspicious of the managements intentions.

(4) Career planning: The promotion policy should be in line with employee career planning. This will avoid sudden spurt of promotion followed by a drought (long periods when there are no promotions opportunities.)

(5) Detailed Records: A sound promotion policy ensures that detailed records of employee service and performance are maintained.

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7.9 Promotional policies in banks:The policies of banks with regard to promotions vary depending upon the scale or level at which the officer is given here below are the promotional policies for officers at the junior management (JM) and middle management (MM) grades. The information given here has extracted from the Bank of India officers associations diary (BOIAD), 2006.

Particulars

JM-I to MM-II

MM-II to MM-III

Seniority Merit

Fast track

Seniority

Merit

Minimum service

9 years 7 of service in JM-I of

years 3 of

Years 8 years of 5years service MM-II in service MM-II

of in

service in JM-I

service in with CAIIB JM-I

Out

of

which 2 years

2 years

2 years

years 3

years

services in rural area

rural/semiurban

rural/semiurban

Allocation vacancy

of 60%

20%

20%

50%

50%

Marks allocation Written test Professional qualifications 50 10 60 5

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Rural service Performance appraisal

10 30(last 5 40(last 5 years apr) years apr) 40 55

Interview

Some of the other terms and conditions regarding promotion (according to BOIAd, 2006) are: 1. Rural service marks will be for rural service in excess of 2 years 5marks per years. Service in excess of 6 months but less than 2 years 2 marks. 2. Specialist officers to undergo rural service as and when he switches over to mainstream. 3. In the fast track channel, an officer who has not completed the minimum 2 years of service in rural branch will be considered eligible for promotion subject to proviso that he shall complete 2 years of service at rural branch after his promotion to scale II. 4. professional qualification marks are given for CAIIB, charted

accountant, company secretary, cost & works accountant and CFA (5marks) 5. Officers will not be eligible, if the average marks in APR for preceding 3 years are below 40%. 6. Debarment non acceptance of promotions for the first time next process, for second time next two processes and for third timepermanently debarred. 7. Provision for appeal for non promotion is deleted.

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Chapter 8 Performance appraisal

8.1 Definition:

According to Indian national institute of personnel management, performance appraisal is a technique of assessing as impartially as possible, the attributes, strengths, weakness, capacity and attitudes of individual employee in relation to his job. C. D. Fisher defines PA as the process by which an employees contribution to the organization during a specified period of time is assessed.

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8.2 Process of Performance Appraisal:

Establishing Performance appraisal

Communicating the standards

Measuring Performance

Comparing the actual with standards

Discussing the appraisal

Taking corrective actions

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Process of Performance Appraisal:

(1) Establishing Performance appraisal: The process of appraisal begins with the establishment of criteria for evaluating the performance of employees. The criteria are established with help of job analysis. The criteria should not be vague but should be clear and objective in nature. The criteria should be discussed with the supervisors to ensure that all the relevant factors have been included.

(2) Communicating the standards: The performance standards established in the first step are communicated and explained to the employees so that they come to know what is expected of them. Based on the reactions of the employees, the standards may be modified or revised. Feedback of the employees is critical as it avoids misunderstandings and confusion later on.

(3) Measuring Performance: In this step the actual performance of the employee at work is measured, it is essential to choose the right technique of measurement. The most frequently used resources to measure actual performance are: personal observation, statistical reports etc

(4) Comparing the actual with standards: In this step the actual performance of the employees is compared with the set standards. Such comparisons reveal deviations which may be positive or negative. Positive deviations occur when the employees actual performance exceeds the set standards. Negative deviations occur when the employees performance is below the set standards. The deviations reveal the employees strength and weakness.

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(5) Discussing the appraisal: The results of the appraisal are communicated to and discussed with the employee. The deviations observed in the earlier step are analyzed and discussed with the employee. The deviations observed in the earlier step are analyzed and discussed. The employees strengths and weaknesses are indicated and discussed so that his performance improves. It is extremely important that the appraisal discussion is done properly as it has great impact on the employees self esteem and affects future performance.

(6) Taking corrective actions: The last step of the performance appraisal process involves taking corrective measures to improve the performance of the employee; these corrective measures are taken in consultation with employees. Based on the discussions the steps required to improve performance are identified and initiated.

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8.3 Modern methods Performance Appraisal:-

(1) Management by Objectives:Management Guru Peter Drucker is credited for the

development of management by objectives, popularly known as MBO. MBO arose as a result of dissatisfaction with traditional methods of evaluation. Mangers viewed the task of appraisal as unpleasant one and were unhappy when they had to conduct an appraisal interview. Also evaluations (especially negative evaluations) made by superiors were unacceptable to subordinates as they felt that they had not been correctly valued.

MBO involves a mutual agreement between the employee and supervisor on goals to be achieved in a given time. MBO focuses on results on how well employees accomplish specified goals. The emphasis is on what employees do rather than on what supervisors think of them. MBO actively involves employees in their own evaluations. MBO consists of two phases: goal settings and performance review.

(a) Goal Settings: In this phase the employees meet their supervisors individually to determine the goals to be achieved within a specified time and discuss ways of reaching those specified goals. The goals are set by mutual agreement between the supervisor and the subordinates. The goals must be realistic, specific and as objective is possible.

(b) Performance Review: In this phase employee and the supervisor meet after the specified period of time and discuss to extent to which goals were met. The

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supervisor attempts to solve any problems that she subordinates faces and new goals are set. The superiors role is that of a listener and guide but never that of a critic.

(2) Assessment Centers: The assessment centers in an organization is the place where individuals are assessed in as systematic and scientific manner as possible. An assessment center is a place specially designed and equipped for a specific purpose appraisal. The objective of an assessment centers is the valuation of individuals for future growth and development. The evaluations are made not on the job but are based on observations of behavior and on the results obtained in psychological tests. In an assessment center a through and complete evaluation is done of the individual his strengths, weakness and personality characteristics. The common procedure in assessment centers is to evaluate a small group of individuals over a period of 2 to 3 days. The group undergoes several types of individual and group activities or exercises for 2 to 3 days under the watchful eyes of a team of experts.

(3) Behaviorally Anchored Rating Scales (BARS): Smith and Kendall developed the original BARS. It is also known as behavioral expectation scales.

The development of BARS involves the following steps: (a) Step1: The supervisors prepare a list of critical incident. (b) Step2:

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The supervisors then group critical incidents in to small clusters of performance dimensions such as job knowledge, leadership etc. . . . Thus there are a number of performance dimensions (usually 5 to 10), each having a number of critical incidents. (c) Step3: In this step a group of experts are called. The experts are presented with the critical incidents prepared in step one. Their task is to reassign or classify the critical incidents in to the same performance dimensions.

The critical incidents that are reassigned by the majority of experts in the same dimension as that by the supervisors (in step 2) are retained. While those critical incidents about which there are confusion about the dimension to which they belong is discarded.

(d) Step4: The experts then rate each of the surviving critical incidents on a scale (of 7 to 9 points) as to how well they represent performance on the given dimension. Those critical incidents for which there is high rater agreement are retained. Those incidents for which there is a low rater agreement are discarded.

(e) Step5: The final form of BARS consists of critical incidents that survived step 3 and step 4. These incidents serve as behavioral anchors for he performance dimension scales. Thus the BARS instruments consist of a series of scales anchored by the critical incidents.

(4) Human Assets Accounting:

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This method is still in the early stages of development. It attempts to measure the monetary value of the human resources of the organization. In this method, evaluation is done in terms of costs and contribution of employees. Costs of human resources consist of expenditure on human resource planning, recruitment, selection, induction, training, compensation etc. contribution of human resources is the money value of labor productivity or value added by human resources. The difference between cost and contribution reflects the performance of employees.

8.4 PA form of a leading PSB:-

The annual Appraisal Report of the leading PSB consists of six parts: Part 1- Bio data sheet Part 2 Business dimensions (for officers in operations). Part 3- Performance Appraisal (for officers in Administration). Part 4 Additional Accomplishments/outstanding achievements. Part 5 Managerial dimensions Part 6 Potential Review.

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Chapter 9 Others

9.1

Stereotypes

of

personnel

management

and

human

resource

management:-

PERSONNEL MANAGEMENT Psychological Contract

HUMAN

RESOURCE

MANAGEMENT

Compliance External controls collective

Commitment Self-control low Unitarist individual high trust Organic flexible role Largely integrated into line management Maximum utilization asset devolved

Control Systems Employee Perspective Preferred Structures/Systems

Relations Pluralist trust

Bureaucratic/mechanistic centralized defined roles Specialist/professional formal

Roles

Evaluation Criteria

Cost-minimization

(human accounting)

Time

and

Planning Short-term adhoc marginal

reactive Long-term

proactive

Perspective

strategic integrated

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9.2 HSBCs commitment to employee development :HSBC offers professional development, mentoring and training opportunities to help employees develop their talents throughout their careers. Here, Jeanne Ebersole outlines just some of the opportunities available.

Career Track: As employees develop their talents and wish to advance their careers, our national internal job bank provides early notice of positions available in the company. Formal skills training: Employees can take advantage of hundreds of business-specific and professional development training resources (classroom instruction, self-study programs, peer training and web-based training) to help develop and enhance their skills. Management training programs: Through several management training programs in our business units, we offer rotational job assignments, mentoring, networking and formal training to high-potential employees to help them become leaders. Mentoring: We believe that mixing new and highly experienced employees is a recipe for success. Our business units have implemented special mentoring programs that pair high-potential individuals with business-savvy senior managers to provide advice, collaborate on career development and increase visibility with the HSBC leadership team. Performance management process: Managers work with their employees to set performance goals and expectations and evaluate progress toward the employees professional development goals. Coaching, recognition and feedback give employees the opportunity to improve and excel.

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Training libraries: At our larger locations, employees can learn more on their own by visiting our corporate libraries stocked with books, tapes, periodicals and, in some cases, internet-ready personal computers. Tuition reimbursement: We support educational endeavors for our employees by offering a generous tuition reimbursement program. Eligible part- and fulltime employees who take undergraduate or graduate college courses are reimbursed up to specific limits each year, until the entire cost of the tuition is reimbursed.

9.3 COMPENSATION SYSTEMS IN PUBLIC SECTOR BANKS:-

The difference in the salaries of officials in Public Sector and Private Sector Banks is absolutely mind boggling. While State Bank of India draws an annual package of less than Rupees Seven Lakhs; whereas ICICI Bank takes home a package exceeding Rupees One Crores every year. The typical salary slip of a public sector bank has four components: 1. Basic pay 2. Dearness Allowance 3. House Rent Allowance 4. City Compensatory Allowance The information given here has been extracted and condensed from the Bank of India Officers Association Diary (BOIAD) 2006.

1. BASIC SCALE OF PAY

SCALE Scale I

DETAILS OF BASIC PAY AND INCREMENT 10,000- 470/6-12820-500/3-14320-560/7-18240 (one year after reaching the maximum of pay in scale I, an

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officer is eligible to draw further increments annually till the maximum of pay scale II and thereafter 2 stagnation increments of Rs.560/- on completion of 3 years each) Scale II 13820-500/1-14320-560/10-19920 (One year after reaching the maximum of pay in scale II, an officer is eligible to draw further increments annually till the maximum of pay in scale III and thereafter 1 stagnation increment of Rs.620/- on completion of 3 years.) Scale III 18240-560/5-21040-620/2-22280+2 stagnation increments of Rs.620/- each at the interval of 3 years. Scale IV Scale V Scale VI Scale VII 20480-560/1-21040-620/5-24140 24140-620/4-26620 26620-680/4-29340 29340-682/2-30700-900/1-31600-1000/1-32600

1. DEARNESS ALLOWANCE On and from 1st February 2005, Dearness Allowance shall be payable for every rise or fall of four points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) base 1960= 100 at 0.18% of pay

1. HOUSE RENT ALLOWANCE

CITY/ TOWN Major A Class Cities (Mumbai, and Delhi,

HRA % Kolkata, 8.5% of pay and

Chennai,Ahemdabad,Banglore Project Area Centres in Group A.

Hyderabad)

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Other Places in Area I (Places with population of 12 lakh 7.5% of pay an over Pune, Nagpur, Lucknow, Kanpur, Surat and Jaipur) and Project Area Centres in Group B Other Places 6.5% of pay The above details are just a gist of HRA. The terms and conditions of HRA vary when the employee is staying in owned residential accommodation or residential accommodation provided by the bank.

2. CITY COMPENSATION ALLOWANCE:-

AREA

RATE B.P

MAXIMUM AMOUNT

Places in Area I and in the state of Goa.

4% of Basic Rs. 540/- p.m Pay

Places with population of 5 lakhs and over 3% of Basic Rs. 375/- p.m and State Capitals and Chandigarh, Pay

Pondicherry and Port Blair.

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9.4 PREVENTION OF FRAUDS IN BANKS In order to ensure that their employees function in the best interest of their organizations, public sector banks have laid down clear rules and regulations. Failure on the part of the employees to act in accordance with these creates a cause for disciplinary action. The objectives of the disciplinary action are:

Punishment to the wrongdoers with a reformative view. Deterrent effect on the others which would result in an improvement in the work-culture.

The nature of the disciplinary action depends on the kind of violation the employee has committed. Certain violations are followed by minor penalties while certain violations incur major penalties. Following are the summary of the minor and major penalties that nationalized banks impose on their employees. MINOR PENALTIES:1. CENSURE: A formal and public act intended to convey that the person concentrated has been guilty of some blame-worthy act or omission for which it has been found necessary to award him formal penalty.

2. WITHHOLDING OF INCREMENTS of pay with or without cumulative effect. 3. WITHHOLDING OF PROMOTION.

4. RECOVERY FROM PAY or such other amounts as may be due to him of the whole or part of any pecuniary loss caused to the bank by negligence or breach of orders.

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5. REDUCTION TO LOWER STAGE IN THE TIME SCALE OF PAY for a period not exceeding 3 years without cumulative effect and not adversely affecting his pension. MAJOR PENALTIES:1. Reduction to a lower grade or post 2. Compulsory retirement 3. Removal from service which shall not be a disqualified for future employment. 4. Dismissal which shall ordinarily be a disqualification for future employment.

9.5 Job description of a bank clerk:

The following is a brief job description of the duties and responsibilities that a bank clerk in the term/fixed deposit section has to perform:

(1) Keep the account opening forms of all the different deposit schemes.

(2) Keep the latest information on rate of interest, maturity values of all schemes.

(3) Collect and keep the numbered receipt books in use in personal custody and return to the different officer at the end of the day.

(4) Open the account/issue the deposit receipt as per the duly account opening form. Incorporate all details in ledger/register.

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(5) Calculation of interest provisions and cumulative interest provisions as per the procedure.

(6) Payment of interest on various deposits as per the laid dawn procedures. Calculate the interest properly to avoid excess payment.

(7) Taking dawn the balances periodically, scheme wise along interest provisions and tallying it with the general ledger head.

(8) Transfer of overdue deposits to separate heads and making interest provisions thereon as per procedure.

(9) Intimation to customers regularly about maturity of deposit receipts.

(10) Incase of payment before maturity, obtain application, calculate interest, penalty wherever necessary. Getting it checked before preparing vouchers.

9.6 ICICI BANK: POWER TO THE PEOPLE:ICICI Bank continues to attract talent and is still a first-day choice in the recruitment process at the IIMs, despite the fact that a host of multinationals is offering fancy dollor salaries and attractive international postings. This is because the bank believes in building a learning organization and empowering its employees. The biggest attraction of ICICI is its work content. Empowerment at ICICI is swift and complete. Immediately on the completion of the two weeks orientation program, the employee is given an assignment and may have to take decisions in the very first week. This is what some employees at ICICI have to stay about their organization.

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In the opinion of another employee, Five years ago the ICICI Bank

team welcomed me with an almost irreverent why-not attitude to new ideas. In my first year itself I added half a page to my resume through my work on Greenfield manufacturing projects, financing of service sector and balance sheet restructuring exercises. The roller coaster ride continued when I joined the MCG to lead transactions like brand financing (first time in India) acquisition funding and channel financing. Job satisfaction comes when large multinational clients go back to their HQ and say our global banker in India is the ICICI bank Group. This is what a third employee has to say, I am working on the financial e-initiatives of ICICI Bank, which allows me to constantly explore innovative ways of developing and marketing our product in a volatile and fast paced eenvironment. Conducting extensive market research and working with creative agencies is a key part of my job profile and makes for an interesting life here.

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FINDINGS
A survey was conducted among 30 employees of the bank from different sector and the following results were interpreted.
1. Who decides need for recruitment? Hiring manager Human resource Supervisors

20% 47% Hiring manager Human resource Supervisors 33%

From the survey conducted 14 employees selected hiring manager, 10 employees selected human resource whereas 6 employees favored supervisors.

My opinion
Hire manager is the employee who requested a new position to be filled or an employee to fill an open job. Therefore according to me it is the duty of hire manager to decide whether there is any scope for further recruitment in an organization.

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2. Who decides the term and condition of employment? Head staff Human Resources Management

17%

43%

Head staff Human resource Management 40%

From the above survey, 5 employees feel that terms and condition are decided by head staff, 12 preferred human resources whereas 13 feel its management decision.

My opinion
According to me terms and condition are pre decided by management. Management along with HR sector brings about certain changes which are required to be made in an organization.

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3. Do you think HR gives sufficient opportunity for internal applicants? Yes No Cant say

13% 34% Yes No Cant say 53%

From the above survey it was found out that 13 people say yes whereas 12 people say no and 4 are not too sure about it.

My opinion
The main duties of HR are implementing all rules, procedures, directives etc. applicable under various statues including those prescribed by the management. At times HR might not be so much co-operative with the employees and might not help with the internal applicants.

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4. What kind of technical tests are conducted in process of recruitment? Psychological Personality Ability Aptitude

19% 38% 12% Psychological Personality ability apptitude 31%

6 employees state that technical tests should be on psychological recruitment and 4 states it should be on personality basis.10 say that the test should be on ability basis whereas 12 chose the option of aptitude.

My opinion
According to me technical tests should be on all aspects i.e. psychological, personality, ability and aptitude. An employee should not be judged only on a single aspect he/she must be eligible for the position applied for and must be well aware about their duties and task handed to them.

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5. What are the ongoing impacts of recession on human resources? Industries High technology Skilled technology

20% 43% Industries high technology Skilled technology 37%

6 employees states that the ongoing impacts of recession are industries whereas 11 feel that high technology is responsible for ongoing impacts. 13 feel that skilled technology is majorly responsible for ongoing recession impacts

My opinion
According to me the major impacts are the skilled technology later comes high technology and then industries

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6. Who makes the final decision on the selection of candidates HR manager Line manager Panel

17% HR manager 50% 33% Line manager Panel

According to employees 15 says that HR manager makes final decision on selection of candidates whereas 10 says that line manager makes the final decisions and 5 feel its panel who takes the decision for selecting candidates.

My opinion
Line manager holds authority over a particular product line. He or she is charged with meeting corporate objectives in a specific functional area whereas an HR is the main candidate who makes final decision for selection of an employee

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7. Do you think recruitment / selection is aligned with company? Agree Disagree Cant say

23% 34% Agree Disagree cant say

43%

According to 10 employees recruitment is aligned with companies and 13 disagree with the same whereas 4 are not to sure about the same.

My opinion
According to me selection and recruitment is not aligned with the company. For many companies their greatest differentiator is their people.

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8. Is the current performance appraisal system? Compatible with desired culture Stress team management Help teamwork Have trust worthy communications

30%

23%

Compatible with desired culture stress teammanagement help team work

20%

27%

have trust worthy communications

According to 7 employees performance appraisal system is compatible with desired culture whereas 5 says that it is stress team management. 6 states that it helps in team work and 9 says that it helps in building trustworthy communications

My opinion
Performance appraisal system should be compatible with desired culture. It should match all the vision mission and objectives of an organization. At the same time performance appraisal should help an employee to understand the value of team

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work and should know how to deal with stress management and should have trust worthy communications.

9. What is the main reason behind training and development of employees? Inspire them Motivate Determine expected objectives

27% 50%

Inspire them Motivate determine expected objectives

23%

8 employees feel that the main reason behind training and development is that it inspires them.7 feel that training and development will motivate them. 15 feel that the main reason behind training and development is that it helps them to determine selected objectives.

My opinion
According to me employees must be trained to achieve desired and expected objectives. Inspiring them and motivating them should be done while reviewing their performance appraisal.

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10. Which is the most important management function in your bank? Organizing Controlling Leading

23% 34% organizing controlling leading 43%

According to 10 employees organizing is the main management function whereas 13 say it is controlling and 7 says leading is the major management function.

My opinion
Organizing in management refers to the relationship between people, work and resources used to achieve the objectives. Controlling in management refers to seeing that everything is carried out in accordance with the plan whereas leadership means to lead. Therefore in a bank all the three management functions are necessary.

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Questionnaires to manager

1. What is the structure of Human resource in your bank? Our Human resource structure is basically based on hierarchy theory. At operational level cash, data entry operator comes above them functional level comes in which Technical expert and Data analysts come and all of the above branch manager or bank manager comes who is apex in the structure of human resource.

2. Mostly which kind of sources is used for recruitment? We reckon both internal and external source of recruitment. For internal we trace out the performances of the existing employees and conduct a review of Selection process. For external we do campus recruitment, walk in interview and we have tie ups with portal who helps us to do external recruitment.

3. What are most used external sources?

We make more focus on online applicants because online application can be screened easily through there Resume.

4.

What type of program your banks prefer for induction?

We do formal induction because proves that the company is taking interest in getting him off to good job.

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5. Do you believe that recruitment/ selection helps the achievement of your company objectives?
Yes, proper selection of new and effective employees is always a main strategy during recruitment/ selection. While selecting we always look forward that the best people are chosen which may intend to achieve the banks objectives and help us grow and they enhance the organizational achievements.

6. Which type of training method is used?

There are certain cases where we have to choose between on job and off job training for trainees. Most of the cases we give on job training to trainee but for polishing some special skills we send our special trainees for off job training.

7. How is performance measured for HR in your bank?

Performance measurement between employees by their performance and ratings given to them this helps us to identify their strengths and areas of improvements. 8. Which method of performance appraisal your bank believe in? Performance appraisal in our bank are done through two models , first one is rank and yank strategy in which he has to perform well or he is intend to leave the company. If he do well he gets incentives and it helps him to do more focus on job. On the other hand MBO is there which means Management by objective in which superior chalks out short term objectives followed by specific actions. It helps the employee to self evaluation.

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CANARA BANK

ICICI

It is ranked 7th amongst in public sector bank.

It is top ranked private sector bank.

It provides incentives but on a medieval basis not frequently.

It provides many packages on form of bonuses and promotions.

Selection process of canara is of 2 levels.

a. Probationary officer b. Administrative officer

Selection process of ICICI is very lengthy and cost consuming.

There is not much emphasis on training and development of canara bank. Each financial year beginning with 1st April and ends on 31st march will be treated as promotion year for conducting promotional exercise. In CANARA bank of India, the undiscounted amount of short term employee benefits such as medical benefits, casual leaves, provident fund scheme. It prefers formal induction

The training and development policies of ICICI bank are much better than CANARA bank. They declare promotions in the month of April every year.

Benefits provided to employees such as gratuity, superannuation.

It prefers formal as well as informal induction

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CONCLUSION
Human Resource Management has a place of great importance. Improper use of the different factors of production depends on the wishes of the human resources. Hence, besides other resources human resources need more development. Human resources can Increase co-operation but it needs proper and efficient management to guide it. Human Resource Management is concerned with managing people as an organizational resource rather than as factors of production. It is concerned with people dimension of an organization. Human resource department is expected to take care of welfare activities, employment, safety, training, wages and salary

administration, promotions, transfers, lay-off, improvement in living and working conditions, health services, safety measures, prevention and settlement of disputes, etc. Because of continuous changing socioeconomic, technological and political conditions. Human resource planning is a double-edged weapon. If used properly, it leads to the maximum utilisation of human resources, reduces excessive employee turnover and high absenteeism; improves Productivity and aids in achieving the objectives of an organisation. HRM can get various methods of encouraging, motivating the employees. There are so many new and modern methods to train the employees & to retain them. Through transfers and promotions employer can encourage his employees. If any employee is promoted then he feels proud and does more and more hard work for more and better opportunities. I think the theories of Maslow should not be treated as classrooms commodities but they should be worked out. HRM is a subject of prime importance.

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Bibliography: Efficiency and Effectiveness of Bank Management in a Liberalized Environment. (M. Basheer Ahmed Khan UMA Chandrasekaran). Human Resources management in banking and insurance Vinay V. Prabhu , Bharat M. Pithadia. ICFAI magazines

Webliography: www.rbi.org www.wikipedia.com www.shodhganga.com

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ANNEXURE

Questions to manager
What is the structure of Human Resource in your bank? Mostly which kind of sources is used for Recruitment? What are most used external sources? What type of program your banks prefer for induction? Do you believe that recruitment/ selection helps the achievement of company objectives Which type of training method is used? How is performance measured for HR in your bank? Which method of performance appraisal your banks believe in?

Questions to Employees
Who decides need for recruitment? Who decides the term and condition of employment? Do you think HR gives sufficient opportunity for internal applicants? What kind of technical tests are conducted in process of recruitment? What are the ongoing impacts of recession on human resources? Who makes the final decision on the selection of candidates Do you think recruitment / selection is aligned with company? Is the current performance appraisal system? What is the main reason behind training and development of employees Which is the most important management function in your bank?

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