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CHAPTER- 1

INTRODUCTION OF HUMN RESOURECE MANAGEMENT

Human resource management (HRM) is the strategic and coherent approach to the management
of an organization's most valued assets - the people working there who individually and
collectively contribute to the achievement of the objectives of the business.The terms "human
resource management" and "human resources" (HR) have largely replaced the term "personnel
management" as a description of the processes involved in managing people in organizations.
Human Resource management is evolving rapidly. Human resource management is both an
academic theory and a business practice that addresses the theoretical and practical techniques of
managing a workforce.

The Human Resources Management (HRM) function includes a variety of activities, and key
among them is deciding what staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and training the best employees,
ensuring they are high performers, dealing with performance issues, and ensuring your personnel
and management practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel policies.
Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they should always ensure that
employees have and are aware of -- personnel policies which conform to current regulations.
These policies are often in the form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a major management activity) and
HRD (Human Resource Development, a profession). Those people might include HRM in HRD,
explaining that HRD includes the broader range of activities to develop personnel inside of
organizations, including, eg, career development, training, organization development, etc.

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There is a long-standing argument about where HR-related functions should be organized into
large organizations, eg, "should HR be in the Organization Development department or the other
way around?"

The HRM function and HRD profession have undergone tremendous change over the past 20-30
years. Many years ago, large organizations looked to the "Personnel Department," mostly to
manage the paperwork around hiring and paying people. More recently, organizations consider
the "HR Department" as playing a major role in staffing, training and helping to manage people
so that people and the organization are performing at maximum capability in a highly fulfilling
manner.

Human Resource Management or Personnel management is the activity of managing personnel,


usually employees.

In any organization, managing personnel is the process of making sure the employees (not the
customers) are as productive as they can be. This can include hiring, firing, or transferring people
to/from jobs they can do most productively.

This subject is a major at many universities, or a minor in the business school. It is also known as
personnel administration, which is functionally an equivalent term.

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Meaning of Human Resource Management:

A business unit needs employees to look after different activities. This is called manpower or
human resource. Such human resource needs to be developed fully so that it will make positive
contribution for the progress and prosperity of a business unit. For this systematic development
and management of human resources is necessary. Human Resource Management (HRM) deals
with:

(a) Training

(b) Self-development

(c) Promotions

(d) Performance appraisal of manpower recruited in an organization.

HRM is an organized learning experience aimed at matching the organizational need for career
growth and development. It is a process involving series of learning activities designed to
acquire desired level of competence among employees. HRM is a continuous process and it
needs money. Such investment creates a team of efficient, skilled and trained manpower which
brings success and stability to a business unit. HRM programmes offer long term benefits to an
organization.

Introduction

This book is concerned with the management of people at work. The quotations opening the
chapter provide insights into how the field of labour management is viewed by business
executives, practitioners and academics in the 1990s. They also suggest that the ways in which
organizations choose to manage their employees are in a state of transition. Labourmanagement
practices have assumed new prominence in the 1990s as concerns persist about global
competition, the internationalization of technology and the productivity of workers. It is argued
that these market imperatives require work organizations to adjust their system of managerial
control to allow for the most effective utilization of human resources. Business executives,
practitioners and academics argue that the traditional approaches to managing workers are
inappropriate and 'can no longer deliver the goods' (Betcherman et al., 1994, p. 2). To enlist

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workers' full potential and to produce behaviour and attitudes considered necessary for
competitive advantage requires three aspects of managerial control to change: organizational and
job design, organizational culture, and personnel policies and techniques. Thus, the developing
managerial orthodoxy now posits the need for 're-engineering' of organizations towards 'flat'
hierarchical structures, an enlargement of job tasks and job autonomy, ideally centred around
work teams. Further, it is suggested that senior management can direct and inspire
workersthrough the management of the more intangible aspects of the workplace, such as
beliefs,norms of behaviour and values. In the jargon of the managerial theorists this is referred to
as 'corporate culture'. In addition, the new orthodoxy asserts the need to recruit, develop and
reward workers in ways which create a sustainable commitment to organizational goals and to
ensure a 'high-performance' organization.

It is this third dimension to managerial control, personnel policies and techniques that is
associated with the shift in the late 1980s from orthodox personnel management to the 'new'
human resource management (HRM) paradigm (Beer et al., 1984; Guest, 1990). The seminal
book edited by John Storey, New Perspectives on Human Resource Management (1989),
generated extensive debate about new labour management practices and the nature and
ideological significance of the 'progressive' human resource management (HRM) paradigm. This
theoretical discourse, and apparent enthusiasm for a new approach to managing workers, is not a
British phenomenon. The paradigm shift to the HRM model from the orthodox personnel
management approach, and the ensuing debates among academic observers, have taken place on
both sides of the Atlantic, and in many other countries.

However, the theoretical debate has been particularly fierce in Britain (Storey, 1995). There is
one point that most academics do agree on; the new HRM model is, in part, a product of both the
political ideology and the new economic order of the late 1980s, evidenced by the rise of radical
Conservative governments headed by Margaret Thatcher in Britain and Ronald Reagan in the
USA. Indeed, the 1980s are seen by many observers as a watershed in human resource
management. The result, among other things, has been to change radically the way British and
North American management deal with their workers and their unions.

The HRM paradigm has been good for academics. In the UK, business schools have renamed
their departments and courses and established new university chairs in human resource

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management. The HRM 'cottage industry' has spawned a spate of books and articles advocating,
analysing or contesting the concept, philosophy and significance of human resource
management. In addition, two prestigious journals advocating the elimination of HRM as a
specialised function (Storey, 1995). An earlier reengineeringguru, Richard Schonberger, argued
that HRM specialists were irrelevant. He expressed it like this: The fat is non-productive staff,
which not only is expensive but actually is an obstacle to fast response and the pursuit of actions
done for the good of the whole organization' (1982, p. 197). Our approach rejects the notion of
'one best way' as will be shown below. This chapter examines the theoretical debate about the
nature and significance of the new HRM paradigm. To make sense, however, of the HRM
discourse and determine whether it actually heralds a new theoretical model or is merely a
repackaging of old ideas, it is important to examine the history of personnel/HR management.

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CHAPTER- 2
FUNCTION OF HUMAN RESOURCE MANAGEMENT

Human resources planning

Human resources planningis a process that identifies current and future human
resources needs for an organization to achieve its goals. Human resources planning
should serve as a link between human resources management and the overall strategic
plan of an organization. Aging worker populations in most western countries and
growing demands for qualified workers in developing economies have underscored the
importance of effective Human Resources Planning.

As defined by Bulla and Scott, human resource planning is ‘the process for ensuring
that the human resource requirements of an organization are identified and plans are
made for satisfying those requirements’. Reilly defined workforce planning as: ‘A
process in which an organization attempts to estimate the demand for labour and
evaluate the size, nature and sources of supply which will be required to meet the
demand.’ Human resource planning includes creating an employer brand, retention
strategy, absence management strategy, flexibility strategy, talent management
strategy, recruitment and selection strategy.

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Planning

As the economy grows at a steady rate of around 7-8%, incomes rise and demographic
dividends start accruing, the Banking industry is expected to take a quantum leap
forward. But this growth will need a large number of people and considering that there
are retirements in lakhs, a defining moment is being presented before the Nationalized
Banks to transform. Are the banks ready to handle the new bunch of employees who
will be culturally so different from their predecessors of the post nationalization era? It
all begins with having a manpower plan. How many banks can claim to have a proper
manpower plan that captures the type of people it requires, the level at which they are
required, clearly defined roles for everyone, etc. Manpower plans should follow a
lifecycle approach, that is, from the time of recruitment of an employee to his retirement.
Further, this needs to be integrated with the Business Plan and strategy of the bank.
Are we having a Business Strategy or Business Plan needs to be addressed first.

While planning your people requirement it is very important for you to develop your
“employer brand”, that is, your reputation as an employer to attract, engage and retain
talented candidates and employees. Banks will have to plan for the following:

• A steady, carefully calibrated recruitment programme,

• As rapid technological changes transform business – continuous skill up-gradation.

• A new generation of the workforce will be working alongside an older generation as a


team. Banking, in my opinion is a team work and this new situation will require cultural
adjustments and therefore, change management

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Training:

Organization & individual should develop & progress simultaneously for their survival &
attainment of mutual goals. So every modern management has to develop the
organization through human resource development. Employee training is the important
sub system of human resource management. Employee training is a specialized
function & is one of the fundamental operative functions for human resources
management.

After an employee is selected, placed & introduced he or she must be provided with
training facilities. Training is the act of increasing the knowledge & skill of an employee

for ding a particular job. Dale S. Beach defines the training as ―the organized

procedure by which people learn knowledge & skill for a definite purpose.The training
system in the banking industry has a strong structural base.

However, in the past the training activities have been more ritualistic due to absence of
a strategic link between training & human resources development. Today, it is important
that the training function is made an effective organizational intervention by establishing
a clear policy of training & development within the framework of total human resource
development. The training establishments need to be actively involved in the total
training process starting from the identification of the training needs, evaluation of
training effectiveness & the benefits of training to the end users viz. the internal &
external customers. The need for training & development is determined by the
employee‘s performance deficiency, computed as follows:

Training & Development Need = Standard Performance – Actual Performance.

We can make a distinction among training, education & development. Training, as was
started earlier, refers to the process of imparting specific skills. Education, on the other
hand, is confined to theoretical learning in the classrooms.

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Development:

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

This ancient Chinese proverb seems to describe the underlying rational of all raining &
development programs. No banking organization can long ignore the training &
development needs of its employees without seriously inhabiting the performance. Even
the most careful selection does not eliminate the needs for training, since people are not
molded to specifications & rarely meet the demands of their jobs adequately.

This HRM function deals with the overall development of the employees. This includes
their professional & well as their personal development. It is a part of HRM function to
identify opportunities for enhancing the skills of the resources. Promotion is regarded as
one of the ways of recognizing development undertaken by an employee. Development
is also largely dependant on training. Generally people think that training & development
are one & the same, but there are many differences between them.

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PERFORMANCE APPRAISAL

A performance appraisal is a systematic and periodic process that assesses an


individual employee’s job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual employees
are considered as well, such as organizational citizenship behavior, accomplishments,
potential for future improvement, strengths and weaknesses, etc.

To collect PA data, there are three main methods: objective production, personnel, and
judgmental evaluation. Judgmental evaluations are the most commonly used with a
large variety of evaluation methods. Historically, PA has been conducted annually
(longcycle appraisals); however, many companies are moving towards shorter cycles
(every six months, every quarter), and some have been moving into short-cycle (weekly,
bi-weekly) PA .The interview could function as “providing feedback to employees,
counseling and developing employees, and conveying and discussing compensation,
job status, or disciplinary decisions”. PA is often included in performance management
systems. PA helps the subordinate answer two key questions: first, "What are your
expectations of me?" second, "How am I doing to meet your expectations?"

Performance management systems are employed “to manage and align" all of an
organization's resources in order to achieve highest possible performance. “How
performance is managed in an organization determines to a large extent the success or
failure of the organization. Therefore, improving PA for everyone should be among the
highest priorities of contemporary” organizations.

Some applications of PA are compensation, performance improvement, promotions,


termination, test validation, and more. While there are many potential benefits of PA,
there are also some potential drawbacks. For example, PA can help facilitate
management-employee communication; however, PA may result in legal issues if not
executed appropriately, as many employees tend to be unsatisfied with the PA process.
PAs created in and determined as useful in the United States are not necessarily able to
be transferable cross-culturally.

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CHAPTER- 3
HRM IN BANKS

HUMAN RESOURCE MANAGEMENT IN BANKS

I am happy to note that a conference focusing exclusively on HR issues is being


organized by Public Sector Banks. I understand that the conference is being organized
at the instance of the Government of India, who are the promoters/ owners of the Public
Sector Banks. It is good to see the promoters/ owners taking a keen interest in the
human resource issues of the promoted companies. Of late, a general trend of
promoters/ owners taking keen interest in normal routine operations of banks is being
observed, which needs careful analysis.

Let us have a look. Why are the promoters/owners being made to take a keen interest
in your routine affairs? Efficient and effective HR systems are the key here. In my
opinion, this may be due to something lacking in the management capacity of the
banks. Hence, we need to upgrade our HR capacity development process to enhance
management capacity of banks, to avoid such needs on a recurring basis. If the banks’
HR practices are augmented and optimized, may be through such conferences, there
will be an overall improvement in efficient management of banks, which would preempt
the need for the promoter/ owner getting involved in normal issues. I would, therefore,
like to congratulate the Department of Financial Services, Government of India for
prompting banks to take this long pending initiative.

I would structure my talk today into three broad segments where I would be discussing
the importance of human resource management for banks, some of the key
challengesfacing HR managers in Public Sector Banks, including probable solutions,
and why now is the right time to focus on HR issues.

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Human resource management (HRM) has long been overlooked in the corporate sector
in the country where a small section, comprising mostly the multi-national companies
was practicing the same. With the growing realization of proper HRM in the corporate
sector, it has grown into an important activity. Now the head of HRM is an important
member of the senior teams of any thriving business.

Although the idea is new for many local businesses where entrepreneurs are at the
beginning of the learning curve yet in reality the theme is getting support from the
organized entrepreneurs.

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 products and activities.

The classification of the Indian banks into broad groups such as public sector, old
private sector, new private sector, foreign, regional rural banks & cooperatives are
largely on the basis of ownership pattern. It is also well known that the business mix,
delivery channels & IT strategies of these organizations vary substantially. What is little
known but of greater importance is that each of these banks follows very distinct HR
practices which have contributed, substantially, to the business processes.

1. HRM in Cooperative Banks

It is sad that the HR policies of cooperative banks are totally dominated by the Registrar
of Cooperatives. This is, perhaps, one reason why the cooperatives are unable to
improve themselves.

2. HRM in Regional Rural Banks (RRBs)

As regards RRBs, most of them adopt the HR policies of sponsor banks, which are not
appropriate for their special nature.

3. HRM in Public Sector Banks

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In the recent times, the contours of HR function in public sector banks are slowly but
definitely changing. One could say that these banks are discovering the HR function & it
is hoped that these banks will fast catch up with others. It may be recalled that, in a
controlled environment & to meet with the rapid branch expansion- since 70s- Public
Sector Banks (PSBs) have adoptedHRM practices similar to that of Government
departments. Herein HRM did not have a direct role in business development but was
more concerned with centralized recruitment to staff & providing them across the
country.

4. HRM in Private Banks & Foreign Banks

The HR function as practiced by private & foreign banks is effectively involved in the
identification of specific skills that each job warrants & recruiting suitable staff by every
way possible. In these banks, recruitment is a continuous process with a strong focus
on getting the right person for the right job by offering appropriate compensation,
incentives & designations. There is a great energy spent in keeping the turnover low &
offering appropriate training inputs. Possibly there are as many pay structures as there
are employees. More importantly, HRM has a role in monitoring & mentoring the
employee. There are no routine transfers. Rather people are recruited in different
geographical locations & different levels. Technology has helped in centralizing the back
office & other functions such that service can be provided from a distance.

These institutions adopt a proactive performance appraisal system but still short of 360
Degree appraisals. Their training process is concerned with both skill building &
motivating. It should, however be said that the demand for professionals on account of
growth of Indian Business is such that the efforts of HRM have not helped it from
completely staving off staff turnover in the ranks.

5. HRM in Public Sector Unit Banks (PSU Banks)

In the case4 of PSU Banks the recruitment process is annual & large scale. People are
recruited at the lowest grade & promoted I due course. This makes the career path of
each employee the responsibility of the organization. This also underlies a belief that
anyone can occupy any desk. In such a system specialization is the loser. Recruitment

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at higher levels is a recent phenomenon & more an exception than rule. Pay packets
are uniform for a grade/level with annual increments & uniform perquisites. Increments
are earned automatically. Transfers are not driven by business requirements but a
matter of routine. Vacancies get created as & when people move up. It is not
uncommon to see new department‘s spring up just to allow promotions. In a way such a
move is justified as salary is linked to grades & not performance. The concept of job
rotation is practiced with great conviction. As regard leave it is seen that modern
business organizations, driven by work life balance issues & ‗operational risk ensure
that certain annual leave is mandatory.

In the case of PSU Banks, the ―compulsory leave system‖ has not yet taken root. In

the circumstances an important task at hand is training the staff member, who, on
account of age profile is not comfortable working in an IT environment. HRM should
also take immediate steps to improve productivity. There is a simultaneous need to
balance the demand of IT savvy youngsters joining the organization who ask for high
salaries.

PSU Banks are not able to offer market driven salary. Given that banking business &
the business of Government are distinct, there is, in the case of PSU Banks, an urgent
need that salaries are not limited by what is paid in the ministry but unshackled. Till that
happens, HRM should, innovatively tackle the issue

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CHAPTER- 4
NEED &IMPORTANCE OF HR IN BANKS

Why human resource management is important for Banks

Human Resource Management is important for banks because banking is a service


industry. Management of people and management of risk are two key challenges facing
banks. How you manage the people and how you manage the risks determines your
success in the banking business. Efficient risk management may not be possible
without efficient and skilled manpower. Banking has been and will always be a "People
Business". Though pricing is important, there may be other valid reasons why people
select and stay with a particular bank. Banks must try to distinguish themselves by
creating their own niches or images, especially in transparent situations with a high level
of competitiveness. In coming times, the very survival of the banks would depend on
customer satisfaction. Those who do not meet the customer expectations will find
survival difficult. Banks must articulate and emphasize the core values to attract and
retain certain customer segments. Values such as "sound", "reliable", "innovative",
"international", "close", "socially responsible", "Indian", etc. need to be emphasized
through concrete actions on the ground and it would be the bank’s human resource that
would deliver this.

It is a common complaint among bank executives that skilled manpower is in short


supply. No two arguments on this, HR resources are becoming scarce – both in quality
and quantity. And, it is quite elementary that any resource that is in short supply needs
to be properly managed for the benefit of society and, therefore, you need to pay
attention to the entire Human Resource Management process. What do I mean when I
say this? You need to manage the people – and for this you need to discriminate

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between the people, I mean positive discrimination. The entire spectrum of HR practice
requires revolutionary changes if the banks have to survive. Managing the people is the
key challenge. And, in my opinion, discrimination is the key word when dealing with
people. You will notice that I will use this word very frequently during my discussion.

World over, the technology driven channels such as, ATM, net banking and mobile
banking have reduced walk-in-customersat the bank branches. However, in India, it is
observed that the customers still find it difficult to use these technology basedchannels
and they are more comfortable in traditional banking over the counter personally to
ensure error - free and risk –free banking service. While struggling to provide better and
efficient service at the counters, the staff is also confronted with various regulatory
norms to mitigate risks in operations. This clearly establishes that employees of
cooperative banks play a vital role in managing not only the ‘transaction’ of a customer
but also future long-term relationship with them.

There are several reasons for the new approaches to the nefarious activities prevalent
in the market and also save it management of staff. Firstly, infrastructural problems with
from the people who have vested interests. These hamper growth in the bank and over
staffing. Secondly, the autonomous growth of these institutions. One important
increasing competitive pressure in cooperative banking had factor to be noted is that
though the cooperative banks come led to greater attention to controlling labour costs
and under the financial discipline of the RBI, NABARD and the increasing labour
productivity. Thirdly, the nature of change Apex Bank, they enjoy autonomy in personnel
matters. had moved the emphasis towards being a market-driven rather than an
administratively driven organization and the The cooperative banks should be
committed to Equal importance of staff quality was being emphasized.

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CHAPTER- 5
HR PRACTICES ADOPTED BY COMMERCIAL BANKS

The banking has become a complex activity within the financial market linked directly
and indirectly with an over-all national growth and its impact as an integral part of
regional segment of a global banking environment. Almost every bank and financial
institution is involved in various functions in a day's job and thus requires a highly
effective team and appropriate manpower to run the show. Corporate goals are
translated into viable realities and profits only with human element that play their due
role in achieving the desired results.

Thus even the high automation would require proper man behind the machine to make
things happen. This idea has been realized by top management in progressive banks.
Like many other organized sectors, banking requires multi-layer manpower for its
various requirements of professionals and support staff. The range may require
reasonably educated security guards on the one end and a highly educated and trained
professional as head of corporate finance at the other. 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 steps in a big way
making banking more practical. This has further highlighted the need for proper
deployment of man-power to run banks efficiently. For many years, HRM banks like
other institutions have been handling this sensitive activity through respective personnel
departments. This means human resources were managed like other physical assets
e.g. pieces of furniture, calculators, equipment and appliances.

Personnel departments were primarily engaged in approval of leaves, handling of staff


loans, issuance of show cause, conducting disciplinary enquiries and termination from
service. Recruitment was a routine function and was done in a mechanical way to hire

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people with specific educational background irrespective of their real value to the
institution.

Success stories of large banking companies have been evident of the fact that HRM is
quite different from management of physical assets. Human brain has its own peculiar
chemistry.

Its strong sensory and decision-making capacity has to be greatly emphasized by the
employers. The work force constituting all levels of employees is constantly thinking in
many dimensions.

On the one hand it is the assigned duty and task they are to perform and for which they
are paid by their employer, on the other they think of their long run goals and objectives.

By no means, their brains can be controlled to think beyond the current situation of
employment. Managing this educated, skillful and trustworthy work force is not an easy
job. A few of the current challenges faced by the banking industry in terms of human
resource management may be the following:

To make the Indian Banking System stronger, efficient and low-cost, the creation of
fundamentals must include in the bank‘s operations, strategies and processes:
strengthening the prudential norms and market discipline; adoption of international
benchmarks; management of organizational change and consolidation within the
financial system; upgrading the technological infrastructure of the financial system; and
human resource development as the catalyst of the transformation (2002).

The Human Resource field in the Banking Industry is considered as one of the process
of discovery and transformation. The field of Human Resource can be described as
emergent and dynamic within the cultural business aspect in a Banking Industry. The
success of today‘s banking business will sparsely depends on the human resources of
the organization, in which plays a crucial role in providing the services needed.

The evolution of banking system in India affected the human resource practices,
recruitment and selection practices, and training system. It is very important that the

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details of human resource are discussed along with the employees, to build their own
career planning, perceptions and development.

The primary strength of the industry is the human resource that is why the efforts to
develop the skills and management are the main subject placed before the human
resource. A major challenge for many banks will be to develop the special
competencies and skills for credit appraisal and risk management. Putting the
information technology is a key contributed in human resource development. Therefore,
the HR model of the future will require professionals to be both driving and anticipating
change, understanding the complexities of the new business environment and forces
shaping it.

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HR Practices and Methods

A key focus of the human resource management is highlighted in the role of staffing,
performance management, training and development, and compensation that plays
indifferent types of business strategies. With the acquisition and preparation of human
resources, including planning, recruitment, selection, and training can affect the whole
organizational performance.

The HR planning, the start of the strategy, illustrates the process of developing human
resource plan. The strengths and weaknesses of staffing options such as outsourcing,
use of contingent workers, and downsizing are involved in planning.

The recruitment process is done strategically to determine the talented employee fit for
the position. The selection process emphasizes the ways in minimizing errors in
employee selection and placement to improve the company‘s competitive position. The
selection method standards such as validity and reliability are utilized.

An effective training systems of the manager‘s role in determining employees‘ readiness


for training, creating a positive learning environment, and ensuring the training is used
on the job.

Beyond the human resource strategies are the rewarding and compensating that can
strengthen or weaken the employee effectiveness. In order to give recognition and
increase motivational levels amongst the employees, some Banks linked the individual
performance in an incentive scheme – or for some rewards that may come into any form
.In summary, all of the HRM strategies and function should be aligned to help the
company meet its objectives – as well as focusing on their customers .

The best practice approach assert that certain HR practices are found to consistently
lead to higher organizational performance, independent of an organization‘s stated
strategy. The high performance HR practices foster innovation through the development
of innovation values, encouraging of information sharing, goal setting and appropriate
training and development.

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CHAPTER- 6
AXIS BANK

AXIS HR Objective:-

1. To initiate &institutionaliseglobally competitive HR practices in the Bank in our


pursuit to become a Bank of international standards and to become an employer
of preferred choice.
2. 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.
3. To create a performance-driven culture and an exciting workplace for the
employees.
4. To create a pool of entrepreneurial managers and business leaders for future.
5. To inculcate a strong and effective sales and service culture across levels in the
organization in order to generate strong stakeholder affiliation.
6. To create a learning organization for employees intellectual growth and creativity;
and to re-skill the workforce to operate in digitally enabled modern core banking
environment.
The Strategic HR Business Model adopted by Axis 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:-
1. Strategic Leadership - Corporate level
2. Business Leadership - Zonal & Regional level
3. Operational Leadership - Business unit level i.e. branch
The two vital Human Resource sub-systems i.e. HR Planning & Management Sub-System
&Competency Based HRD Sub-System shape the very crucial Performance Environment within
the Bank which facilitates development of enabling capabilities of the people.
Through proper developmental inputs, Positive Attitude &Right Mindset is created among
people.
Through proper Communication Medium and an Organizational Culture of sharing, openness,
collaboration & confrontation, autonomy etc., people in the organization are facilitated to give
their best output (performance).

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The Model is adequately supported by a suitable Learning Platform, which imparts proper
Knowledge and enhances Learning among people (functional, behaviouraletc) so that their
Competence increases and their potential could be properly leveraged for greater Individual and
Organizational Effectiveness.
These create proper Employee Motivation, which ultimately facilitates Goal Achievement.

HR Blueprint for Business Driven HR Reforms:


Board level approved strategy paper outlining various organization wide HR reforms
interventions

HR Steering Committee
Board Level HR Committee for piloting HR initiatives and reforms. The Committee comprises
of Directors and leading professionals as Experts from outside the Bank.

KHOJ
Organization wide Talent identification and Development Programme for Officers and Clerks
(Through scientific process of identification and selection, employees with high potential to be
deployed in key business areas.Such employees to be provided with suitable grooming and
career.

SAMPARK
SOS Employee HELP Line (Employees in distress can directly approach the CMD for
immediate relief)

PARAMARSH
Employees Counselling Centre (Counsellingcentres for providing psychological
assistance and guidance to overcome their stress, complexities and conflicts in order to
lead a better life. This is totally confidential between the employee and the counsellor.
First such centre set up at Mumbai where services of professional Clinical Psychologist
are available.

AXIS FINANCIAL REWARDS FOR BUSINESS LEADERS

Weighted Index based Model (with pre-defined weight ages for different business
KRAs) for balanced assessment of efforts of Business Leaders (Branch Heads,
Regional Heads, Deputy Regional Heads and Zonal Heads). Rewards in Cash for
achievement of business KRAs.

MEP-TIKSHNA

Management Education Programme for Executives (GM, DGM, AGM, Chief Managers)
in association with top B-Schools like IIM-Ahmadabad and Management Development
Institute, Gurgaon. The specially designed programme is aimed at development of
strategic business leaders for the future. So far, 213 executives have undergone the
programme.

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HR POLICY FOR OVERSEAS SELECTION & DEPLOYMENT

Scientific and process orientation in the new revamped policy for selection and
deployment of officers at the Bank‘s overseas territories.

HR RESOURCING POLICY

New HR Resourcing Policy formulate to take care of various recruitment needs of the
bank consequent upon abolition of the erstwhile Banking Services Recruitment Board
(BSRB).

Performance Appraisal System for Clerical and Sub-Staff

With the objective of bringing an organization wide performance culture in the


organization, hitherto uncovered employees in the Clerical and Sub-Staff cadre brought
in under a new performance appraisal system.

Massive Recruitment of Specialist officers and also graduates from B-Schools


through campus recruitment

To take care of the Bank‘s requirement in different specialized areas like IT, Treasury,
HR, Marketing & Sales, Credit, International Business etc (Around 500 officers being
recruited).

A New Induction cum Grooming Programme for Young Officers

With the objective of developing future managers and leaders and for deployment in key
areas, a re-vamped Officers‘ Induction cum Grooming Programme is launched.

Fast Track Career Growth Opportunities for Executives and Officer

In order to provide fast track growth opportunities to aspiring Executives and Officers,
promotional opportunities have been provided.

Axis LEADERSHIP DEVELOPMENT CENTRE

Board has taken the decision to set-up a World-Class Leadership Development Centre
to be set up to prepare future leaders for the Bank.

NEW GROUP HR STRUCTURE

A new Group HR Organization Structure is being put in place to take care of the
strategic business – HR needs of the Organization. The Structure would have balanced
focus on HRM and HRD aspects and will put in place competency based HR systems
and practices.

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1. CV Submission Potential candidates interested in joining the bank are required to
send their complete curriculum vitae. An acknowledgement of receipt is sent for all
submitted applications to the candidate's email.

2. Application Evaluation The Human Resources department evaluates all incoming


applications, against prerequisite abilities and skills set for all current openings. All
applications are kept based on strengths and specialization, for future reference.

3. Ability Tests Potential candidates will be invited to participate in aptitude tests i.e.
numerical, verbal, English and psychometric, when deemed necessary.

4. Capability Based Interviews To ensure that our recruitment process is fair and
consistent, all candidates who are successful at the exams are invited for a
capability based interview. Interviews are based against capabilities, required for
each position for which the candidate is interviewed for. A capability or competency
is an ability described in terms of skills &behaviours that are essential to effectively
perform within a job.

5. Reply Letters At all stages of the process candidates are kept informed of the
status of their application with an email reply letter. 6. Job Offer If a candidate
successfully reaches the final stage, a position offering is made in conjunction with a
competitive reward package.

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CHAPTER- 7
CONCLUSION
The public sector banking system in India is standing at an important cross
road. There are critical choices to be made and initiatives to be taken. The
time is ripe for leaving the old baggage and taking bold measures. These
measures would determine the future path of public sector banks and
whether they would continue to retain their position of preeminence in the
banking space or would they yield to the pressure from their peers in the
private sector. Considering the importance that banks have in the nation
building process, the choices made now could have a bearing on the
economic future of the country and on the lives of crores of our fellow
countrymen, many of whom are yet to be touched by the formal financial
system. We must succeed. Not only for ourselves but also for the society
and for the nation.
I hope that some of the issues raised by me here today
are dwelled upon during the course of this Conference
and concrete action plans emerge to tackle the HR
challenges facing our banks. I wish the Conference all
success. Thank you.

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CHAPTER- 8
BIBLOGRAPHY
BOOKS

HRM IN BANKING [TY BCBI]

PERSONNBOOKS

HRM IN BANKING [TY BCBI]

PERSONNAL MANAGEMENT/HRM - BHATIA S.K.

HRM: Contemporary Prospective – BREADWELL, IAN, HOLDEN, LEN

HRM &INDUSTIAL RELATIONS – SUBBA RAO

CASE AND EXERCIES IN HRM – GEORGE, STEVENS

PERSONNEL MANAGEMENT – MAMORIA, C.B.L MANAGEMEN /HRM -


BHATIA S.K.

HRM: Contemporary Prospective – BREADWELL, IAN, HOLDEN, LEN

HRM &INDUSTIAL RELATIONS – SUBBA RAO

CASE AND EXERCIES IN HRM – GEORGE, STEVENS

PERSONNEL MANAGEMENT – MAMORIA, C.B.

26
SEREACH ENGINE

 www.google.co.in/

 www.yahoo.in/

WEBSITES

 www.wikipedia.com
 http://www.rbi.org.in/home.aspx
 http://www.sbi.co.in/
 http://www.rbi.org.in/financialeducation/home.aspx

 http://www.moneycontrol.com/

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