Vazirani (2007) is of the opinion that, the best HR Practices enable the company to affect

radical improvements, not just incremental ones.

Codrina (2008) studied the HRM practices in different Romanian Private Companies and

found that the HR practices being adopted by different types of firms differed due to their

size and activity length.

Haid (2008) in one of his studies in India explored four key drivers of retention. These are the

HR practices named: performance management, professional development practices, manager

support, social responsibility leading to the employee attitudes and beliefs which in turn drive

the retention. A model was developed for the same in this study. These HR practices were

suggested to be implemented in the Indian organizations to increase the employee

engagement and retention, resulting in boosting their competitiveness in the growing Indian

market, enabling them to address changing market conditions quickly and nurturing a pool of

talent that will give them the capabilities they need in the future.

Bharathi (2009) explained the value of HR functions in business and its impact on higher

productivity, enhanced quality, better customer service, good industrial relations and lower

cost which influence the profitability of an organisation. Effective HR practices could play

important role in achieving all the above said factors.

Chakraborty (2009) explained as to why the managers should be proactive. According to him,

―Every organisation, department, team has different people and these people have to be

understood, handled and dealt properly. In case you do not act proactively with such people,

it would end up destroying the work culture and vitiate the whole work environment.‖
Chaudhari (2009) was of the opinion that, the HRM policies of an organisation are influenced

by two major factors: situational factors and stakeholders interest. The situational factors are

labour markets, laws of the land, management goals, business strategies, technology,

employee demography, position of the company. The stakeholders interest cover expectations

of shareholders, management, employees, government and society/community. These factors

can act as constraints on the formulation of HRM policies and can also be influenced by

HRM policies. REVIEW OF LITERATURE

33

Chendroyaperumal (2009) was of the view that the contributions to human resource

management practices from India are rich and very effective but long remained ignored by

the scholars. For instance, Lord Buddha and Mahatma Gandhiji have all proved the

effectiveness of Indian human resource practices to the utter disbelief of the rest of the world.

He studied therefore best HRM practices prescribed in Panchatantra (one of the ancient

Indian works on management using the case method, a method to be discovered by the West

only 5000 years later!) related to employee qualities and work, leadership, motivation,

employee turnover and retention, research and development personnel, conflicts, and

employee care. He suggested in his study that practicing these HRM principles would result

in better management and utilization of human resource and thus would enhance the

efficiency and performance of the whole organization. These HR principles from the

Panchatantra are not only consistent with the modern thought on HR management but are

also applicable and easily practicable even today to organizations of all sizes at all places and
times to all people.

Pfeffer (1998), in his study, mentioned about employment of the various HR practices such as

security, selective hiring of new personnel, self-managed teams, decentralization of decision

making as the basic principles of organizational design, extensive training, comparatively

high compensation contingent on organizational performance, reduced status distinctions and

barriers, including dress language, office arrangements, and wage differences across levels,

and extensive sharing of financial and performance information, compensation practices

throughout the organization, placement practices, training practices, employee grievance

procedure, performance evaluation practices, promotion practices. All such practices are

needed for growth of the organisations. He concluded that having good HRM is likely to

generate much loyalty, commitment or willingness to expend extra effort for the

organization‘s objectives.

Guest (1999) suggested the best Human Resource Practices that included: job design in such

a manner that employees have the responsibility and autonomy to use their knowledge and

skills; selection process framed to carefully identify best potential; training as an on-going

activity; two-way communication process to keep everyone informed; and employee

participation to increase employees‘ awareness about the implications of their actions, for the

financial performance of the firm. Guest proposed a simple model (Figure 2.1) of Human

Resource Management and performance which suggested that Human Resource Practices

influence directly to an employee‘s level of commitment towards his performance, which in

turn has an impact on the organization‘s financial performance as an outcome.

Armstrong (2000) explained HR policies as continuing guidelines vis-à-vis the approach

which an organisation intended to adopt in managing its valued assets, i.e. the people. The

HR policies dictate philosophies and values as to how people should be treated

Sekhar (2010) proposed a HRD model for better understanding of HRD framework.

Encouraged by the thought that an attempt to conceptualize a model of HRD in Banks would

pay in the long run making modem financial institutions growth oriented and dynamic, this

study proposed a conceptual model of HRD and application of such model in financial

institutions. This model has been shown in figure 2.5. He also attempted to propose some

new strategies to make HRD activities more meaningful and result oriented in financial

institutions. Besides, this study also introduced the function of HRM from a strategic

perspective in modern banks with a view to improve upon the operational efficiency and the

quality of services in the context of emerging economies.