Beruflich Dokumente
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ON
BY
MANVI BHUTANI
(Roll no. 20130126)
(2013-2015)
Manvi Bhutani
(Roll no. 20130126)
Done at
Bank of Baroda
Chandigarh
Project report is submitted in partial fulfillment of the requirements of PGDM
Of Sri Sharada Institute of Indian Management and Research
SUBMITTED TO
Ms. MOHANTY DEVAHUTI
(Industry Guide)
Col. K. Gurusamy
(Faculty Guide)
Date of Submission: 22nd August, 2014
D E C LAR AT I O N
I also declare that this project report work is not submitted to any other university for any degree.
CERTIFICATE
This is to certify that MANVI BHUTANI has successfully completed her summer internship
project at Bank of Baroda, Chandigarh under the guidance of Ms. Mohanty Devahuti
The details of the project are as under:
Title of the Project:
Study of HR Best Practices across the Industry
Tenure of the Project:
23rd June, 2014 to 22nd August, 2014
We wish her luck for all her future endeavors.
TABLE OF CONTENT
S. No
Title
Page no.
1.
2.
3.
4.
5.
Acknowledgement
Executive Summary
Introduction
HR Initiatives
Human Resource Creating Competence And Passion For
Business Excellence
6
7
8-10
11-14
15-16
6.
17-18
7.
8.
Literature Review
Learning objectives and Scope of Study
9.
10.
11.
21-27
28
29-33
12.
13.
34
35-37
14.
38-40
15.
16.
17.
Research Methodology
-Research Objectives
-Limitations
Presentation of Data and its analysis and Interpretation
Findings
Recommendations and Suggestions
18.
Conclusion
19
20
41-50
51
52-55
56
19.
Bibliography /Refrences
57
20.
Annexure I- Questionnaire
21.
62
22.
63
23.
Photo Gallery
58-61
64-66
ACKNOWLEDGEMENT
I deeply express my profound gratitude and whole hearted thanks to Sri Sharada Institute of
Indian Management and Research, which provided necessary facilities, guidance and endless
encouragement, which helped me soundly. It is a boon to all of us not only in completing our
projects but also throughout the course of study under the humanitarian grounds.
I take this opportunity to express my gratitude to Ms. Mohanty Devahuti, my Industry
guide for her co-operation exemplary guidance, monitoring and constant encouragement
throughout the internship project. The blessing, help and guidance given by her from time to
time shall carry me a long way in the journey of life on which I am about to embark.
I am also grateful to other co-colleagues and Mentors Mrs. Ratika Sood, Mrs. Seema, Mr. Ram
Dayal and Mr. J.P. Sharma, Mr. Jatinder Mohan (IT Department) for enabling me to learn the
work process and able to learn many things for being in an Banking Industry and making this
tenure of learning at banking industry a memorable one.
I also thank all the employees in Bank of Baroda for their cooperation in successful completion
of my project.
I take this opportunity to express my profound gratitude and deep regards to my Faculty guide
Col. K. Gurusamy to prepare a PROJECT REPORT for his exemplary guidance, monitoring
and constant encouragement throughout the course of this project.
Lastly, I thank almighty, my parents, brother, sisters, uncle, aunt and friends for their constant
encouragement without which this assignment would not be possible.
MANVI BHUTANI
PGDM BATCH 2013-15
EXECUTIVE SUMMARY
During my summer internship at Bank of Baroda, Chandigarh, I got the opportunity to work with
the Human Resource department of BoB under the guidance of Ms. Mohanty Devahuti. It could
not have been possible without the continued support and guidance of Ms. Mohanty Devahuti.
The internship program commenced from23rd June, 2014 to 22nd August, 2014. During this time,
I got to interact with all the employees of Bank of Baroda, Regional Office, Chandigarh. During
the first week of my internship program, I studied the background and theory of HR Practices
and its various determinants and how it impacts an organization. The whole process was very
educative and I get to learn a lot by working with employees of Bank of Baroda and observing
the working of Indias second largest Bank. With the Consistent help of my Industry Guide, I
Learnt the Work Process and the Working of HR and its Best Practices in Banking Industry.
During the next week, I constructed a HR Practices Questionnaire for collection of data for my
project Bank of Baroda Study on HR Best Practices. Then I started collecting the data for the
same. For this purpose, I got the questionnaire filled from employees of the Organization.
Analysis of the collected data was done and during the last week, I with the help of my company
guide, studied HR Practices of Bank of Baroda, Chandigarh to make BoB a Best HR
Practitioner. The whole process was very educative and I get to learn a lot by working with
employees of Bank of Baroda and observing the working of Indias second largest Bank.
I am happy to be a part of BOB Family in these two Months and my Stay at Chandigarh.
INTRODUCTION
For more than a century now, human resource management, as a discipline and practice
in management of people in an organization, has evolved and developed into different areas.
These disciplines and practices have gone through the process of trial and error, theory building
and testing of various concepts by practicing managers and academics (Farnham and Pimott
1979; Storey 1989; Armstrong 1995). Human Resource management principles and techniques
for people management in competitive organizations are drawn from theories found in different
disciplines. According to Institutional Theory, the word institution means different things to
different people and combines various disciplines of politics, law, psychology, public
administration, economics etc to explain why certain actions are taken and their impact on the
organisation. The process of standardization of procedures affects behavior of people in the
organisation. Thus Employment contracts, performance agreements and other employment
related instruments form a useful aspect of human resource management.
The productivity of people working in an organisation depends deeply upon the policies
that are used by the organisation towards its people i.e. its employees. Thus Human Resource
management becomes a very important aspect of todays organisation which cannot be ignored.
HRM department undertakes a number of practices that ultimately leads to organisational
effectiveness.
The Human Resource today does not just limits to administration tasks of making payrolls and handling leaves and attendances etc. It has evolved into a discipline of strategic
importance to organisations. The HR goals are aligned with companys overall performance to
have co-ordination among various departments and also to have necessary and right amount of
people with right skills, working at right jobs at right time to ensure the profitability of an
organisation. The figure below shows the various HR practices.
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Fig 1. HR Practices
Economists and managers traditionally used to view HRM as a necessary expense, rather
than as a source of value to their organisations. But now a day, a world class organisation is the
one that invests not only on acquiring new technology and promoting quality but also on the
state-of-the-art staffing, training, compensation and personnel management practices.
10
HR Initiatives
People oriented Deployment, Promotion and selection policies
Bank has formulated and put in place well documented and comprehensive deployment,
promotion and selection policies oriented towards identifying the best talent and providing
opportunities for fast-track growth and development. Some of the prominent HR policies put in
place are
HR Resourcing policy
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Fluous Payroll Module, - centralized payroll, payments of various benefits, perks, welfare
schemes, terminal benefits, etc.;
Oracle Learning Management Module which includes training administration & elearning; Various E-Learning modules are gradually being put on the system for
employees to avail of and undergo these courses.
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development. The new system is business-linked, highly objective and fully transparent, with
individuals owning and managing their own performance themselves.
Baroda Sujhav and ideaonline@bankofbaroda.com
Idea channels for eliciting new ideas from employees with structured rewards provisions for the
best ideas.
To initiate & institutionalize globally competitive HR practices in the Bank in our pursuit to
become a Bank of international standards and to become an employer of preferred choice.
To put in place relevant HRD strategies and use modern methodologies to undertake
Organizational renewal; identify and nurture talent, bring about marked changes in the
mindset of employees at all levels so as to enhance HR Quality
To create a performance- driven culture and exciting workplace for the employees
To inculcate a strong and effective sales and service culture across levels in the organization
in order to generate strong stakeholder affiliation
To create a learning organization for employees intellectual growth and creativity; and to reskill the workforce to operate in digitally enabled modern core banking environment
The Strategic HR Business Model adopted by Bank of Baroda incorporates its HR Mission and
Philosophy and is focused towards attainment of long-term organizational goals. A very strong
Organizational Leadership at different levels forms the key link in the Model.
These are;
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Large Scale Training on Products Bank carries out a campaign called ASCEND for large
scale product training to impart Product Knowledge to the Front Line officers on Retail Liability,
Retail Asset and E-business products. The campaign was run entirely by the trainers and
operational bankers and it covered 5, 987 employees amounting to about 95% of the target
group.
Similarly, two rounds of All India Quiz christened Baroda Gyani were organized to bring more
awareness on product knowledge. More than 4000 employees from sub staff to officers
participate in this competition upgrading their product knowledge, E learning modules on retail
products were also launched for this purpose.
Employee Engagement and Rewards To augment the engagement levels in the employees for
higher motivation and productivity. Bank has formulated a policy of employee engagement. As a
part of this policy various initiatives like conduct of satisfaction surveys, workshops for
interaction of juniors and seniors are undertaken to improve the employee connect with HR and
top management.
To promote a culture of performance and to reward the top performers the banks has recently
launched linked incentive scheme for its employees.
Formulation of Talent Management System With a view to identify and groom the young
potential leaders in the bank so that they can go on to man the critical leadership position and
thereby fill up the foreseen leadership gaps in future. Bank has taken big stride of designing and
implementing a well orchestrated Talent Management System. This system proactively identifies
future potential leaders on various criteria and also grooms them through a systematically
developmental plan for each of the identified future leader.
This is an annual exercise and in FY 14. Bank was able to clearly identify around 20% people in
specific scales of officers viz. Scale II, III, IV, V, VI as the future leaders.
Implementing of HR Technology
Bank has put in place a very comprehensive HR Technology platform covering HRM, Training,
Payroll and leave modules christened as the Human Resources Network for employee
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17
participants. HRD believes that individual in an organization have unlimited potential for growth
and development and that their potential can be built through appropriate and systematic
efforts.
The abbreviation HRD denoting, Human Resources development is creation of western
countries; they treat and deal human force as resource. Resources are explored, exploited and
discarded after their use. Continuous use of resources make them weak and futile, they decay
with time. However, human beings become wiser, stronger and grow from within each
challenge / problem encountered. Wisdom and strength in human beings appreciated with time
but use of resource always make them weak, futile and depreciate.
D.V. Ramana Murthy has discussed in this article on Human Factor in Banks, the significance
of human factor and trade unions in the banks. S.R. Varde in his paper on Manpower Planning
at the level of an Indian commercial bank dealt with the aspects like basic structure of manpower
planning, linkage of manpower plan to other plans,
Inter relationship of various manpower functions, objectives of manpower planning in Indian
commercial banks, anatomy of manpower plans and techniques of manpower planning. N.R.
Seth discussed growth, functioning and progress of trade unions in Indian banks. P. Subba Rao,
have discussed the role of counseling, performance counseling and action planning in his paper
on Bank Branch Manager as a Counsellor.T.V. Rao, in his book on The HRD Machinery
explained HRD instruments, processes And outcomes, HRD Departments and their tasks,
structuring the HRD function, qualities, and competence requirement of HRD managers,
developing HRD managers, traps and temptations of HRD mangers and HRD instruments.
Balader R. Sharma in his study on Human Resource Management in Banking Industry studied
managerial beliefs, work technology andOrganizational climate.P. Amsa in his paper
Organization culture base for effective HRM in Banks studied HRD related areas in brief in
addition to various issues related to human resource management.T.P. Raman in his paper on
HRD in State Bank of India explained the practice of HRD and various techniques of HRD in
State Bank of India. His paper is mostly based on his work experience in the bank rather than a
study. R. K.Agarwal. In his paper on HRD in State Bank of Patiala explained the objective
and structure of HRD department,HRD climate and various techniques of HRD in the Bank. This
paper also suffers from the same limitations of the T.P.Ramans paper.The recent emphasis on
human resource management, e.g. Storey (1992), Torrington and Tan Chee Haut (1994),suggests
18
that not only is the management of labour being given more attention, but that the issues
discussed are broader and more strategic as well as tactical (see also Wilkinson & Marchington,
1994). Miller (borrowing from Porter (1995) defines strategic human resource management as
those decisions and actions which concern the management of employees at all levels in the
business and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage. (1987, p.352) . Thus, unlike the traditional peripheral function
of many personnel managers, the newer style of human resource mangers attempts to: relate
personnel practices to beliefs, to link each and every process of the recruitment, induction,
training, appraisal rewarding of individuals to an overall set of articulated beliefs of organization.
LITERATURE REVIEW
Bank lending in Dec up five-fold over Nov31 Dec 2009, 0212 hrs IST, ET Bureau
After a sluggish November, bank lending picked up nearly five-fold in December over the
previous month. According to the latest Reserve Bank of India (RBI) figures, total loans,
including food creditloans to Food Corporation of India for food grain procurementand nonfood credit (all other loans) amounted to Rs 29,41,293.07 crore as on December 19. This
represents a sequential growth of Rs 34,028 crore since November 27 compared to a growth of
Rs 7,698 crore in the whole of November. Of this, non-food credit grew Rs31,342 crore in
December, compared to Rs 5,247 crore in the entire month.In a speech on Tuesday, RBI deputy
governor Shyamala Gopinath had said that with the economy posting strong growth in the
second quarter of the year, credit demand was expected to pick up. She added that this has
already started reflecting in the recent fortnight. Speaking to ET recently, Bank of India chairman
& MD Alok Misra and Bank of Baroda CMD MD Mallya had indicated that there were initial
signs of credit revival. Going bythe credit proposals that we received for December, we are
hopeful that the fourth quarter would be better than the preceding three quarters, said Mr
Misra.There are signs of revival in credit demand and it is seen across sectorsinfrastructure,
SME and retail, Mr Mallya pointed out. Oriental Bank of Commerce CMD TY Prabhu said that
as of now credit demand is seen primarily from the agriculture sector.
In the second quarter ended September 2009, many banks, including State Bank of India, Bank
of India, Union Bank of India and Bank of Baroda, had reported sanctioning large loans worth
Rs 20,000-30,000 crore to the infrastructure sector. However, the borrowers have not sought
disbursal for these loans.
Bank of Baroda to open over 300 branches next fiscal N.S. Vageesh Chennai. Dec. 20 2009
Mr M.D. Mallya, Chairman and Managing Director of Bank of Baroda, is described by his
colleagues as a down-to-earth person and a thorough gentleman'. They say he has a good grip on
the business and has built on the contributions made by his predecessors. He has taken the bank
forward instead of undoing their initiatives. Mr Mallya's academic credentials are interesting.
He did his Engineering graduation from REC Surathkal, and then did a management program at
the Indian Institute of Science before joining the banking world three decades ago. While
19
acknowledging the contribution of his background in giving him analytical skills, Mr Mallya
tells you that what a banker needs most is common sense. That point is highlighted a few
moments later when we discuss new business being acquired by the bank. He points out that
the bank must chase profits rather than business volumes. He carefully monitors the
sustainability' of the business by looking at weekly growth figures submitted by his officers
rather than quarter-end figures which can often be dressed up
Learning Objectives: The current study is conducted to help the Human resource
department of Bank of Baroda to understand what makes bank of Baroda HR Best Practices
among its employees by analyzing their responses on various determinants. Thus the major
objectives of the study are to:
a) Analyse the responses of employees of Bank of Baroda with respect to various
determinants of HR Practices.
b) Spell out the challenges that Bank of Baroda faces.
Make recommendations to help Bank of Baroda enhance the HR Best Practices across the
Industry
Scope of Study: This study has been conducted to analyse the HR Practices of Bank of Baroda.
The study has been conducted in Chandigarh region. The Job satisfaction of the employees has
been evaluated with respect to 17 following factors:
HR Planning
Incentive Practices
Team Work
Training and Development
Performance Appraisal
Proactive vs Reactive Culture
Trust vs Distrust
Motivation
Compensation
Organisations Structure
Job Characteristics
Environmental Factors
Recognition
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Ability Utilization
Growth opportunities
Organisations Culture
Co-Workers
21
Bank of Baroda is one of the Big Four banks of India, along with State Bank of
India, ICICI Bank and Punjab National Bank.
In its international expansion, the Bank of Baroda followed the Indian Diaspora,
especially that of Gujaratis. The Bank has 101 branches/offices in 24 countries including 61
branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in
Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches.
Among the Bank of Barodas overseas branches are ones in the worlds major financial
centers (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a
number in other countries. The bank is engaged in retail banking via the branches of subsidiaries
in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has recently upgraded its
representative office in Australia to a branch and set up a joint venture commercial bank in
Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country.
The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South
Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri
Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in
the United Kingdom, the United Arab Emirates, and Botswana.
The tagline of Bank of Baroda is "India's International Bank".
Bank of Baroda and Manipal University have established the Baroda Manipal School of
Banking, which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal
University. The duration of the course is just one year, after which, successful graduates will join
Bank of Baroda as management trainees.
Bank of Baroda provides wide range of services, be it deposits, loans & advances,
Collection services, Working Capital Finance, Term finance, Non Fund based Facilities, Trade
Finance, Merchant banking and other such aspects of banking. The small and medium business
22
enterprise is one of the fastest growing sectors in the country. Bank of Baroda offers various
products and services that meet the specific requirements of such enterprises and help them
grow.
Mission:
To be a top ranking National Bank of International Standards committed to augmenting
stakeholders' value through concern, care and competence
BOB Logo
Our new logo is a unique representation of a universal symbol. It comprises dual B letter forms
that hold the rays of the rising sun. We call this the Baroda Sun. The sun is an excellent
representation of what our bank stands for. It is the single most powerful source of light and
energy its far-reaching rays dispel darkness to illuminate everything they touch. At Bank of
Baroda, we seek to be the sources that will help all our stakeholders realize their goals. To our
23
customers, we seek to be one-stop, reliable partners who will help them address different
financial needs. To our employees, we offer rewarding careers and to our investors and business
partners, maximum return on their investment. The single-colour, compelling vermillion palette
has been carefully chosen, for its distinctiveness as it stands for hope and energy. We also
recognize that our bank is characterized by diversity. Our network of branchesspans
geographical and cultural boundaries and rural-urban divides. Our customers come from a wide
spectrum of industries and backgrounds. The Baroda Sun is a fitting face for our brand because it
is a universal symbol of dynamism and optimism it is meaningful for our many audiences and
easily decoded by all. Our new corporate brand identity is much more than a cosmetic change. It
is a signal that we recognize and are prepared for new business paradigms in a globalised world.
At the same time, we will always stay in touch with our heritage and enduring relationships on
which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, we
hope to communicate both.
BOB ETHICS
Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived the crisis,
mainly due to its honest and prudent leadership. This financial integrity, business prudence,
caution and an abiding care and concern for the hard earned savings of hard working people,
were to become the central philosophy around which business decisions would be effected. This
cardinal philosophy was over the 94 years of its existence, to become its biggest asset. It ensured
that the Bank survived the Great War years. It ensured survival during the Great Depression.
Even while big names were dragged into the Stock Market scam and the Capital Market scam,
the Bank of Baroda continued its triumphant march along the best ethical practices
Careers at BoB
Bank of Baroda believes in the talent and skill of its human capital, understanding that strong
skill sets provide a competitive edge. The Bank is looking for people who:
The bank hires from a diverse variety of educational backgrounds. With graduates in
science, commerce, engineering and business administration in its workforce, an
environment of diversity is created among its employees.
Joining BoB
Employees are recruited as either a clerk, or an officer, depending on their demonstrated ability
at the entry level.
Clerk: A clerk is the face of the bank - a pivotal point of contact for customers. The typical role
of a clerk is to build long term relationship with customers. He handles basic customer financial
queries and services like balance enquiry, pass book printing and payment and receipts of cash.
He also handles data entry of customer information and other financial transactions.
Officer: A bank officer is senior to a clerk, and is bestowed with higher authorization and
signatory powers. An officer can serve the bank in various capacities, depending on his place of
posting and his seniority. Roles reside in branches, administrative offices, and processing centers.
25
There are two types of officers Generalists and Specialists. While generalists typically take on
general banking roles, specialists take on roles in certain specific areas (eg: HR, IT, Law,
Planning, Finance, Security, and Marketing)
Recruitment channels
IBPS from time to time announces the common written exam for all the 19 Public Sector Banks
(PSBs) and IDBI bank. A detailed advertisement regarding the Age, Educational Criteria and
other qualifications or criteria required to apply for Common Written Exam (CWE) is published
on www.ibps.in and in leading newspapers. One who aspires to join any of the PSBs has to
qualify in the Common Written Exam (CWE), which is specific to the state. Candidates who
qualify in Common Written Exam (CWE) are subsequently called for Common interview which
is coordinated by IBPS. Candidates are asked to submit their preference order of banks.
Candidates successful in both the written exam and interview are
Depending on the vacancies in each bank of ones preference, an offer is made to candidates by
the appropriate bank.
Recruitment is also done directly through Baroda Manipal School of Banking.
Lateral Recruitment: The bank recruits officers at the lateral levels also, viz. Scale II, Scale III,
etc., based on requirements that arise from time to time. Eligibility criteria to apply for these
posts depend on the grade/scale for which the recruitment is going on, and will be declared on
the website and in leading dailies.
Career paths
26
Junior Management:
Branch head of a small branch, officer in charge of a department in a branch, officer in an
administrative office
Middle Management:
27
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Here are the ten challenges that the HR function in India faces:
1. The first and foremost challenge that HR function in India faces is to convert the
abundant population pool into useful human resource.
2. Training and development of human resource to match ever changing industry demands
requires HR to develop new and innovative ideas that suit individual as well as industry
criteria.
3. Employee motivation and satisfaction is another area of concern for the HR today. In
order to reduce attrition, HR needs to realize that monetary needs are not the only drive
for an individual and that a sense of Belongingness must be imbibed in employees.
4. With the increase in number of job options available nowadays, the HR function of an
organization must take care that they hire those people who believe in long-term
commitment to the organization. The HR then must take up the challenge of retaining
them by developing retention techniques like Holiday plans fun-at-work etc.
1. Because of cutthroat competition, HR in India also faces the task of building competitive
advantage for the company over national and international competitors.
2. The growing importance that companies are nowadays giving to cost-cutting has posed
HR with the challenge to minimize expenditure on HR not compromising on the
productivity.
3. HR also faces the challenge of creating a balanced organization that originates from
mergers and acquisitions
4. HR needs to assimilate those policies that are mutually agreeable to the companies being
merges as well as profitable for the new organization.
5. Globalization poses HR with challenges such as expatriation and repatriation. HR needs
to train employees that leave their nation for fulfilling a foreign assignment. It also needs
to provide such employees with adequate moral support and assure them of job security
on their return.
6.
With multinational organizations on the rise, HR needs to focus on issues such as crosscultural training so that problems that can arise because of differences in international
professional values can be diminished.
MEETING HR CHALLENGES:
30
The banking sector has been growing at a very fast pace in India not only in the terms of its size
but also in terms of the services being provided. With banks reaching the remote areas in the
country one can anticipate positive things like financial aid to farmers and increased financial
awareness.
However, with the increase in size and activities of banks, the number of banks in private sectors
has also increased thereby posing challenges like cost-efficiency, technological advancement,
and credibility related issues. The task before the HR is to develop strategies that help banks in
gaining competitive advantage and encourage innovation in its products and services.
With drastic growth of banks it calls for efficient and well trained staff members to handle/deal
with the consumer needs. Banks are shaping up as financial hub for their clients to grow in size
and well recognized in the world market.
To pull consumers banks are offering traditional with advance services like SMS banking, ATM,
internet banking,banking, demat. So we can say that it caters to the need of the bottom to the
highest class of society providing something to everyone. Universal banks have become modern
days supermarket extending almost every facility of banking under one roof.
Banks like Bank of Baroda are conducting Grooming and etiquettes programmes for front-line
employees and also for employees selected for overseas posting in order to improve their service
levels and qualitative interaction with customers and various stakeholders better.
SEED (Self efficiency and effectiveness development) programme being run for frontline staff of
the Bank in order to improve their service skills and servicing efficiency.
PERFORMANCE MANAGEMENT
Banking service is one sector where a great degree of attention is being paid to performance
appraisal system. Several of the nationalised banks have changed their performance appraisal
system or are in the process of changing them.
In most of the banks that follows the traditional system, their officers are being assessed on the
following characteristics:
General Intelligence
Job Knowledge
Initiative and resourcefulness
Supervision
Business Capacity
Ability to assess sound
Business propositions
Dependability
Relationship with junior & senior colleagues
Relationship with public
Conduct, manners, Managerial ability
Failures that attracted issue of warning by superiors
Several of the banks also have self appraisal as a part of performance appraisal, although mostly
such self appraisal is more of a communication of achievements. A fair, transparent and objective
mechanism for performance management is a must for all banks because an effective
Performance Management System is the key to talent management and succession planning. RBI
is shortly going to introduce a new Performance Management System that will work on goal
setting, potential appraisal of performers and developing a talent pipeline. With all these changes
we are also going to face major challenges on the Talent Management front. In coming times, the
work force will get complex and there will be a need to juggle a wide variety of people with
varied needs and preferences, resulting in an array of
relationships between the organization and those who work for it. Peter Drucker had, more than a
decade ago, flexible schedules, contract arrangements, virtual teams, etc.
32
SYSTEMS/PROCESS
The effectiveness of any efficient HR system/ process is that it should be objective and
Transparent. These traits are essential for the manpower to repose trust in the organizations
systems/ processes. No HR function can be effective if it does not enjoy the trust and confidence
of its constituents. Two key stakeholders in the HR management process are Board/ Senior
Management and Unions. How much time do Board members spend on HR
Related issues?
Structurally, it is important that Board/ senior management is actively involved in HR matters
involving all its manifestations. Organized employee unions are an important part of the
democratic process and form an effective channel for communicating with employees down the
line. It is important to involve them in the HR process without allowing them to have an
overbearing influence.
HRD climate in an organisation is reflected by its role, clarity, openness, trust, teamwork,
proactive orientation, planning of development of every employee etc. HRD climate and
processes are dependent on personal policies, topmanagement styles, investments on HRD, top
management commitments, line managers interest, previous culture, etc.
To sum up the relationship between human resource development mechanism and human
resource development processes and climate can be explained asHRD mechanisms are most useful instruments to develop a healthy HRD climate.
HRD instruments are used to develop desired Human resource development processes.
HRD experts use the term OCTAPACE to express the important features of HRD climate
The most important aspect of organizational culture is the values it practices. Eight values may
be examined to develop the profile of an organizational culture that is called
OCTAPACE It means OPENNESS, CONFRONTATION, TRUST, AUTHENTICITY,
PROACTIVELY, AUTONOMY, COLLABORATION, AND EXPERIMENTING.
IMPORTANCE OF COMMUNICATION
Communication is what makes the world spin. It's how information is shared, news
is spread and lives kept safe.Effective communication has an incredible impact on the
productivity of Human Resource Management (HRM)because without it there are frustrated
employees, confusion in the workplace and unhappy customers in the end. From hiring and firing
to developing and enforcing company policy, communication is what a good HRM department is
built on.
The primary function of effective communication in HRM is to empower the employees. With
the proper information, a rewards system and effective policies in place, employees feel
empowered and motivated to do their jobs to the best of their ability. Communication keeps
everyone in the know and dispels any wrong information or Confusion.
Communication Policy of RBI
The following broad guidelines and operational practices for communication have evolved from
the objectives of the organization and goals of communication
The Reserve Banks communication should contribute towards achieving the overall objectives
of transparency, credibility and accountability.
It should always endeavor to place all sustainable information in the public domain so as to
discourage individual seeking of information.
33
MANAGING SEPARATION
In recent years, with the high levels of attrition in the service sector, it has become imperative for
firms to have astructured separation plan for orderly exits of employees. Of course, the concept
of pink slips or involuntary exits are another matter altogether and involve some bitterness that
results because of the employee losing his or her job. In conclusion, it is our view that employee
separations must be handled in a professional and mature manner and though attrition is a fact
that concerns everyone in the industry, once an employee decides to leave, the separation must
be as smooth as possible.
Role of HR manager in exit interview:
Discover the employees reason for leaving
Give positive attention to the departing employees in order to alleviate possible frustrations
and/or negative attitude toward the organization
Allow departing employees to have a voice about what their work experience was like Receive
valuable feedback from departing employees about compensation, working conditions,
management, and the culture of the organization
Explore areas of the departing employees most serious concerns, and record details of what
they enjoyed most
Departing employees have an opportunity to transfer knowledge and experience to a successor
or replacement; may also brief a team on current projects, issues and contacts
Chance for departing employees to give constructive feedback, and to leave on a positive note,
with good relations and mutual respect.
34
SUPERANNUATION
Employees of the Bank, above a prescribed grade, are entitled to receive retirement benefits
under the Banks Superannuation Fund. The Bank contributes a sum equivalent to 13% of the
employees eligible annual basic salary(15% for the Managing Director, Executive Directors and
for certain eligible to insurance companies, which administer the fund. The Bank has no liability
for future superannuation fund benefits other than its contribution, and recognises such
contributions as an expense in the year incurred, as such contribution is in the nature of defined
contribution.
35
STRATEGY
1. Organization has a process of evolving HR strategy, policies and procedures
2. Hr Strategy is aligned with Business strategy
STAFFING
1.
2.
3.
4.
5.
6.
Job analysis is carried out; job description and specification are documented.
Job description and specification are judiciously used while recruiting.
Proper selection process and selection criteria are defined and used while selecting.
Employees are transitioned in and out of positions through systemic process.
All staffing process are institutionalized and practiced.
Proper background check of the employees are done
COMPETENCY ANALYSIS
1. Work force competencies required to perform the activities are defined and updated.
2. Mechanism to track the competencies of individuals exists.
3. Competency based tasks allotments are done.
4. Organisation process exists to develop individual competencies.
CAREER DEVELOPMENT
1. Organisation offers career opportunities to the employees for growth.
2. Competency development and career development practices are institutionalized.
TEAM BUILDING
1. Team work culture exists in the organisation
2. Team developmental activities exist in the organisation.
3. Participative culture exists in the organisation.
4. Team decision-making process existin the organisation?
37
38
RESEARCH METHODOLOGY
It is very difficult to appreciate and understand the human resources development unless recourse
is made to the interview method.
A separate questionnaire will be prepared for this purpose to draw upon their
rich personal opinions, experiences etc, which cannot find a place in the reports and records.
Interviews will also be conducted with the trainees who underwent training and management
development programme, their superior, subordinates and peers in order to ascertain the impact
of these programmes on job performance and behavior.
Another method that will be adopted for this study is the collection of secondary data from
various public sector banks and private sector banks.
Various appropriate statistical techniques will be employed for analyzing the data. The statistical
analysis and data will be supplemented by the information collected through interviews and
personal observation so as to derive effective and meaningful conclusions.
The data and information will be collected from various sources. Factual data will be collected
from the annual reports of the banks; staff training colleges, house magazines and other records
of the banks, reports and other records of the trade unions.
In the fulfillment of these objectives, a close study is made on all important areas of human
resource development in banks. The position prior to nationalization is also studied with a view
to appraise the changes better.
39
H
R
Trust vs
Distrust
Proactive vs Reactive
Culture
Motivat
ion
Performance
Appraisal
Compens
ation
Organisatio
n's
Training and
Development
Team
Work
Job
Characteristic
s
Incetive
Practices
Environm
ental
HR
Planning
Recogni
tion
Coworkers
Abilit
y
Organisatio
nal
Gro
wth
1
2
3
4
5
40
The determinants used for HR Practices has been taken from various standard questionnaires and
have a reliability coefficient of more than 0.8. Hence this ensures the reliability of the
questionnaire.
Sample: The sample that has been used to conduct this study is a random sample of 20
employees of Bank of Baroda in Chandigarh and. The sample represents the population under
study fairly and is without bias.
Data Collection and Data Analysis: The data for the respective study has been collected in two
forms:
a) Primary Data: It is the data collected from the employees of Bank of Baroda in the form
of their responses to a self administered HR Practices questionnaire.
b) Secondary Data: This data has been sought from bank of Barodas website and also been
provided by the companys HR department to study the history, products & services of
the company and also to study the existing HR policies of the Bank.
For data analysis, SPSS 15.0 software has been used.
LIMITATIONS
There were certain limitations to the study which are as discussed below:
Current study only took sample from some employees of Regional Office, Chandigarh
region and hence cannot be apply to rest of the employees of Bank of Baroda. The scope
of the study is thus limited.
41
DATA ANALYSIS
The data that has been collected by the help of a questionnaire (given in Annexure I) was then
analysed by using the SPSS 15.0 software. The first step in analysis was to define the variables in
the SPSS variable view sheet (Annexure II). Next, the data was filled in the data sheet view
(Annexure III).
The data analysis has been done in two steps. First step was to analyze the demographic
data that has been collected by the use of 5 demographic variables given in the questionnaire.
These demographic variables show the various characteristics of the sample that has been
selected and thus also indicates the demographic characteristics of the employee base of Bank of
Baroda. The second step of the analysis included the analysis of responses to 17 determinants of
HR Practices . In this step, the data is divided into three sets of Disagree, Neutral and Agree
where these indicates that employees are dissatisfied, neutral or satisfied respectively with the
given determinant.
A) Demographic analysis
Various demographic variables that had been studied are Age, Gender, Educational Qualification,
Designation and Monthly Income.
42
Age
Less than 30
30-40 years
41-50 years
51-60 years
more than 60
Fig 4. Age
It can be seen from the above pie chart that majority of the employees in the bank belong to age
group of 31-40 years, followed by 21-30 years age group. The employees of age group Above 40
closely follows. Thus we can conclude that the average age of an employee in Bank of Baroda is
relatively young.
Gender
Male
Female
Fig 5. Gender
Out of a sample of 10 randomly selected employees, 4 were females and 6employees were male.
This indicates a fair mix of gender diversity among the employees of bank of Baroda. We can
43
accurately conclude from this set of data that Bank of Baroda is preferred almost equally by both
the genders for employment.
Educational Qualification
Bachelor
Master
Doctor
44
Fig 9. Motivation
The above bar chart shows that majority of the employees (almost 65%) are highly motivated to
work at Bank of Baroda. It indicates that the leadership at BoB is very effective and employees
are encouraged by their supervisors to do better. Also, the dissatisfaction levels are almost
negligible which indicates another good sign and high commitment of employees towards their
jobs.
2. Compensation
45
46
It can be concluded from the above bar chart that employees are satisfied with structure of the
organisation. The communication between seniors to subordinates is very effective at BoB.
Although, the above data shows the accumulated result of all the items included under this
determinant, it was observed that employees are not particularly happy with the state of bottomup communication in Bank of Baroda.
4. Job Characteristics
This determinant included various job characteristics like autonomy at work, job clarity,
challenges at work etc. The above data shows that employees are satisfied with their job
characteristics. It was a good experience to know that people at bank of Baroda are given enough
space and autonomy to take decisions concerning to their work and are often provided with
challenging jobs that keep their motivation levels high.
5. Environmental Factors
47
48
Above set of data shows a mixed response as far as recognition at work is concerned. Almost
half of the employees that participated in this study feel that their efforts are not rewarded and
recognized as they should be. Hence there is general dissatisfaction with company policies
towards recognition of employees.
7. Ability Utilization
Majority of employees (around 70%) feel satisfied and agree that their potentials and abilities are
properly utilized by the company. Hence, the company makes good use of their skills and their
abilities are also well aligned with companys requirements. There is a slight dissatisfaction
though among 10-15% of the employees which contributes to the fact that employees think that
there is no enhancement in their knowledge by doing their job.
8. Growth opportunities
49
Bank of Baroda provides clear career paths and ample growth opportunities to its employees.
The same is reiterated in the above data which shows that around 67% of employees are satisfied
with the growth opportunities provided to them by Bank of Baroda
9. Organisational Culture
The culture at bank of Baroda is highly agreeable to its employees. The data shows that almost
all the employees are satisfied. The Morning Prayer, healthy relationships among co-workers etc
50
formulates a conducive culture to work in. Although few employees could not make their mind
on whether they firmly believe in companys vision and mission and gave neutral responses.
10. Co-Workers
Employees at Bank of Baroda share very good relations with each other. There was no kind of
animosity seen among the employees. They work in close co-ordination with each other. Around
80% of the employees are highly satisfied with their co-workers and agree that their co-workers
attributes to a huge reason of their job satisfaction. Although there was some neutral and
dissatisfied responses viewed in an item where employees were asked whether company has any
policies that keep the conflicts among co-workers at bay.
51
FINDINGS:
The various challenges that Bank of Baroda faces in its way to become an BEST HR
PRACTITIONER as indicated by the current study are:
Employees feel dissatisfied with the compensation that they are provided for their work.
They do not reckon that their efforts are fairly rewarded.
The bottom-up communication is slightly putting employees off because they do not find
it very easy and hassle free to communicate with their superiors in certain cases. This can
also be attributed to the fact that top-down communication is very effective in Bank of
Baroda and in comparison to that, Bottom-up communication is not as effective.
Some of the employees do not find the working conditions at Bank of Baroda to be very
conducive to them and may like a few changes.
Apart from monetary compensation, employees also feel that they should be recognized
for their work and excellence in other non-monetary ways also. But they are not provided
any such recognition for their extra efforts.
52
The companys vision and mission does not align with that of its employees (in a few
cases).
All the above discussed challenges have been directly derived from the data collected from the
employees through the questionnaire. It also includes the cognizance and revelations observed
during the time spent with employees of Bank of Baroda while the period of internship.
BOB needs to increase its number of ATMs in the country. Especially in metropolitan
cities. This is because today people dont like standing in queues for withdrawing money.
BOB is not very much liked by the youths of the country. The middle aged and old aged
people use it more. Therefore BOB should now concentrate on young generation. It has a
huge market in them.
Efforts can be made to make the compensation of employees at par with those in the
industry. Apart from monetary benefits, some non-monetary benefits should be provided
to the employees so that they feel fairly rewarded for their efforts and feel motivated to
work better. Such non-monetary rewards may include public appreciation at the time of
53
company meeting or during Morning prayers of the employees doing food work. Apart
from this, managers can keep their employees motivated by choosing an employee of the
month who puts extra effort in the work. This way, employees feel rewarded for the work
that they do. Company must also make policies for providing good PF, bonus and raises
to the employees.
The banking sector has grown from a few institutions primarily involved in deposit
acceptance and trade finance into a complex multi player markets where large number of
commercial banks, financial institutions and specialized banks are operating with various
product activities.
Like many other organized sectors, banking requires multi layer manpower for its various
requirements of professionals and support staff. The range may require reasonably
educated security guards on the one hand and a highly educated and trained professional
as head of corporate finance. With liberalization of activities within the banking sector,
for example, more emphasis on consumer and house finance and personal loans, etc
Banking has turned itself into a more market based business where banks have expanded
their reach more to customers door step in a big way making banking more practical.
This has further highlighted the need for proper development of man power to run banks
efficiently.
Smart banks have realized this need and have taken steps to keep their workforce
motivated through proper encouragement like man of the month award, repeat gettogether, conferences, sports events, dinners, company sponsored travel, reunions.etc.
In spite of all these facilitations there still exist several lacunas in the HRM practices in
banking industry. Some of the specific suggestions based on survey of literature as well
as the group discussions and survey are given here under.
54
There must be a clearly defined system of succession planning and career growth
planning in banks.
In order to become HRD conscious, the Public Sector Banks should allow independent
functioning of HRD section, where the top person should be himself a good successful
banker, a real HRD person free from any biases.
More openness, transparency in personal matters, high value of human dignity, people
oriented management system, creating belongingness and trust, two-way communication.
Banks should have a system, whereby the training needs of an employee are identified
and are duly fulfilled at everystage of career growth.
Have special R & D wings in HRD Department for ongoing in house & external research
development, review and implementation of HRD policies.
55
Companys vision and mission should be communicated well and discussed with new and
old employees to take employees along with the companys thinking and to align their
goals with the companys goals.
Training should be provided to employees from time to time to enhance their knowledge,
experience and personal growth so that they feel satisfied with their jobs and find that
their profession is helping them grow as an individual too.
Efforts should be made to ease the bottom-up communication. Managers and supervisors
should take timely feedback from their subordinates on all concerned issues.
Although there is a very cordial and healthy relationships among co-workers in Bank of
Baroda, company must also make certain policies to keep conflicts among employees at
bay. A short, crisp and effective grievance procedure should be provided to employees
when any conflict arises.
56
CONCLUSION
From the data analysis given in the previous step, various conclusions have been derived which
are of importance to the Human Resource department of Bank of Baroda. The demographic
analysis shows that the employee base at Bank of Baroda is diverse with people of various age
groups and both genders working in almost equal proportions and contributing to companys
growth.
Overall, from the analysis, it can be said that employees at bank of Baroda are fairly Best
Practices. These factors present various challenges in front of the Bank of Baroda and basically
its HR department that can be dealt in a better way to increase the HR Practices for its
employees and hence, increase productivity and companys competitiveness. These challenges
are discussed below along with some recommendations on how to tackle these challenges to
make Bank of Baroda an Best HR Practitioner for its current as well as future employees.
To conclude, Organizations all over are rushing to implement the latest ideas on management,
sometimes to the point of overuse. The major challenge now for banks as well as any other
organization is therefore how to develop their social
Developing the individual or human capacity is an integral element of building capacity and, in
fact, capacity building initiatives are now increasingly becoming almost an index of institutional
quality. Taking the banking industry to the heights of excellence, especially in the face of the a
forehead detailed emerging realities, will require a combination of new technologies, better
processes of credit and risk appraisal, treasury management, product diversification, internal
control and external regulations and, not the least, human resource
57
REFERENCES
http://en.wikipedia.org/wiki/Bank_of_Baroda
http://www.bankofbaroda.co.in/bbs/index.asp
http://www.bankofbaroda.com/careers_new/ISBOB.asp
http://www.bankofbaroda.com/careers_new/Careergrowth.asp
http://www.bankofbaroda.com/careers_new/WhyBank.asp
Itika, Josephat Stephan (2011) Fundamentals of Human Resource management, pg 15-16
http://www.scribd.com/doc/33783230/Hr-Practice-in-Bank-of-Baroda
http://www.jba.tbs.tu.ac.th/files/Jba098/Article/JBA98Chaisomphol.pdf
58
ANNEXURE-I
e. Strongly Agree
3. Teams are extensively provided with sufficient power and resources to solve
problems.
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
d.
c. Occasionally
Performance Appraisal
1. Bank uses performance based appraisal
a. Strongly Disagree b. Disagree c. Neutral d. Agree
2. Bank uses employees self-rating on Performance
a. Strongly Disagree b. Disagree c. Neutral d. Agree
e. Strongly Agree
e. Strongly Agree
d.
e. Strongly Agree
e. Strongly Agree
Job Characteristics
a.
My work is challenging and very engaging
b.
I am given autonomy to perform my duty and make
decisions
c.
My job makes a diference in lives of others
d.
My roles and duties are clear to me
Environmental Factors
a.
Working conditions at BOB are conducive to me and my
work
b.
I always have all the required resources to do my work
c.
I feel comfortable in my workplace
d. Bank is flexible to accommodate my family responsibilities
Recognition
a.
My eforts are recognized by supervisors
61
b.
c.
d.
Ability utilization
a. My job makes good use of my skills and abilities
b. I have the training I need to do my job
c. My qualification and abilities are aligned with Banks
requirements
d.
My job enhances my knowledge and skills and
provides good
experience
Growth Opportunities
a.
I am given ample training for personal and professional
growth
b.
Career paths are properly defined at BOB
c.
BOB provides good opportunities for career progression
and promotions.
d.
I get regular annual raise
Organizational Culture
a.
I feel happy working at BOB
b.
Culture at BOB encourage me to work better
c.
I firmly believe in Banks vision and mission
d.
I feel like I am a part of the company
Co-Workers
a. I share good relations with my colleagues
b. My co-workers are courteous and friendly with me
c. There is healthy and amicable environment
between employees
d. Banks policies keep conflicts among co-workers at
bay
Personal Information
Name: ______________________________________
Age: Less than 30
30-40
41-50
51-60
Sex: Male
Female
Education Level: Bachelor
Master
Others, please specify_____________
Seniority: __________ years
Contact Details:
62
more than 60
Doctor
Thank you very much indeed for your time and effort in filling this
questionnaire. I wish you good health and luck. I would like to inform you
that this questionnaire is anonymous. Your personal information will never
be disclosed to outsiders.
ANNEXURE-II
SPSS Variable view sheet
63
ANNEXURE-III
SPSS Data view sheet
64
PHOTO GALLERY
HR INITIATIVES
65
SAMAAN SAMAROH
66
67
68