HRM is directly concerned with the "people" of the organisation. It is people oriented process.

That is, it manages people at work.

Features of Human Resource Management HRM

Following is the nature or features of Human Resource Management HRM :-

1. HRM as a Process

HRM is a process of four functions :1. Acquisition of human resources : This function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of staff. 2. Development of human resources : This function includes Training and Development and Career development. The knowledge, skills, attitudes and social behavious of the staff are developed. 3. Motivation of human resources : This function includes giving recognition and rewards to the staff. it also includes Performance Appraisal and handling the problems of staff. 4. Maintenance of human resources : This function includes providing the best working conditions for employees. It also looks after the health and safety of the staff.

2. Continuous Process

HRM is not a one-time process. It is a continuous process. It has to continuously change and adjust according to the changes in the environment, changes in the expectations of the staff, etc. HRM has to give continuous training and development to the staff due to changes in technology.

3. Focus on Objectives

HRM gives a lot of importance to achievement of objectives. The four main objectives HRM has to achieve are :-

1. 2. 3. 4.

Individual objectives of the staff. Group or Departmental objectives. Organisational objectives. Societal objectives.

4. Universal Application

HRM has universal application. That is, it can be used for business as well as for other organisations such as schools, colleges, hospital, religious organisations, etc.

5. Integrated use of Subsystems

HRM involves the integrated use of sub-systems such as Training and Development, Career Development, Orgnisational Development, Performance Appraisal, Potential Appraisal, etc. All these subsystems increase the efficiency of the staff and bring success to the organisation.

6. Multidisciplinary

HRM is multidisciplinary. That is, it uses many different subjects such as Psychology, Communication, Philosophy, Sociology, Management, Education, etc.

7. Developes Team Spirit

HRM tries to develop the team spirit of the full organisation. Team spirit helps the staff to work together for achieving the objectives of the organisation. Now-a-days more importance is given to team work and not to individuals.

8. Develops Staff Potentialities

HRM develops the potentialities of the staff by giving them training and development. This will make the staff more efficient, and it will give them more job satisfaction.

9. Key Elements for solving problems

Today, we have rapid technological, managerial, economic and social changes. These changes bring many problems. HRM continuously tries to solve these problems.

10. Long Term Benefits

HRM brings many long term benefits to the individuals (staff), the organisation and the society. It gives many financial and non-financial benefits to the staff. It improves the image and profits of the organisation. It also provides a regular supply of good quality goods and services at reasonable prices to the society.

Scope of Human Resource Management HRM

The Scope of Human Resource Management HRM is discussed below :-

1. Human Resource Planning (HRP)

HRP estimates the manpower demand and manpower supply of the organisation. It compares the manpower demand and manpower supply. If there is manpower surplus then it gives voluntary retirement, lay-off, etc. to some employees. If there is manpower shortage then it hires employees from outside, gives promotion to employees, etc.

2. Acquisition Function

Acquisition function includes Human Resource Planning, Recruitment, Selection, Placement and Induction of employees. HRM uses the scientific selection procedure for selecting the right man for the right post. The "right man" is given proper placement and induction.

3. Placement Function

HRM also performs the placement function. Placement is done after selection of employees. It means to put the right man in the right place of work. Proper placement gives job satisfaction to the employees, and it increases their efficiency.

4. Performance Appraisal

HRM also conducts a performance appraisal. Performance appraisal is a systematic evaluation of the employees' performance at work. It informs the employees about their strengths and weakness. It also advises them about how to increase their strengths and remove their weaknesses.

5. Career Development

HRM also helps the employees in planning and developing their careers. It informs them about future promotions and how to get these promotions. It helps them to grow and develop in the organisation.

6. Training and Development

HRM also provides training and development to the employees. Training means to increase the knowledge and skills of the employee for doing a particular job. Training given to managers is called development. So, training is given to employees while development is given to managers.

7. Quality of Work Life (QWL)

HRM also includes Quality of Work Life. QWL is a technique for improving productivity and quality of work. It involves labour management co-operation, collective bargaining and participative management. QWL provides good working conditions, job security, good pay and other facilities such as flexible working hours, freedom to suggest changes or improvements, etc. OWL creates a sense of belonging. This benefits the organisation as well as the individual employees.

8. Employees' Welfare

HRM provides employee's welfare. Welfare measures include paid holidays, medical insurance, canteen facilities, recreation facilities, rest room, transport facilities, etc. Proper and timely welfare facilities motivate the employees to work hard in the organisation.

9. Compensation Function

Employees must be rewarded and recognised for their performance. HRM makes proper compensation packages for the employees. These packages motivate the employees and increase their morale. Rewards are given to individuals, and teams. The rewards may be in the form of higher pay, bonus, other monetary incentives, and non-monetary incentives such as a certificate of appreciation, etc.

10. Labour Relations

HRM is also includes industrial relations. It includes union management relations, joint consultations, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc.

11. Maintenance Function

HRM also performs the maintenance function. That is, protecting and promoting the health and safety of the employees. HRM introduces health and safety measures. It also provides other benefits such as medical aid, provident fund, pension, gratuity, maternity benefits, accident compensation, etc., to the employees

Txt The scope of HRM refers to all the activities that come under the banner of HRM. The activities are as follows 1. Human resources planning: - Human resource planning is a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage. 2. Job analysis design: - Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements.

3.

Recruitment and selection: - Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important areas of HRM.

4.

Orientation and induction: - Once the employees have been selected an induction or orientation program is conducted. The employees are informed about the background of the company. They are told about the organizational culture and values and work ethics and introduce to the other employees.

5.

Training and development: - Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount.

6.

Performance appraisal: - Once the employee has put in around 1 year of service, performance appraisal is conducted i.e. the HR department checks the

performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. 7. Compensation planning and remuneration: - There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning. 8. Motivation, welfare, health and safety: - Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. 9. Industrial relations: - Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.

Role of hr manager in banking:

HRD Practices in Bank:

Staff Meetings

Staff Meeting aims at group synergy, team building, open culture, family feeling and talent recognition which individually and cumulatively benefit the organizations. Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings conducted at all branches/units and action plan is drawn in achieving them.The forum is being effectively utilized for harmonious functioning of all the branches and administrative units through greater involvement and collective contribution of all staff members.

II Brain Storming Sessions

This is a technique for generating ideas and suggestions on topics of relevance and also to provide alternate solutions to problems by simulative thinking and imaginative power of cross section of employees. Corporate Topics are selected for each quarter and BSS are conducted in administrative offices/ braches on the topic during every quarter. Worthy implement able suggestions emanated are circulated for necessary action.

III Study Circle

Concept of Study Circle aims at self development of employees by kindling the desire to acquire/update knowledge, information and experience. Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on topics of general interest by inviting experts in the field. Study Circle Meeting are conducted once in two months in administrative offices and once in a quarter in braches

IV Quality Circles

It is a time tested tool of Total Quality Management (TQM) which promotes team spirit, cohesive quality work culture, commitment and involvement of employees.

CHALLENGES FACED BY THE BANKS: 1. The real challenge of this sector is the "Indian companies", how to transform into global corporations without losing the positive values and culture that they have developed. 2. As most part of the jobs in this industry is monotonous/repetitive and routine, the HRD Department has to empower, engage and energies employees to create effectiveness & efficiency through motivation organizational structures, systems & procedures are facilitators of these, and there is a need to focus greater attention on these aspects by the industry. 3. However, the emergence of a core and peripheral workforce in many organization has presented new challenges for HR managers public & private sector organizations are fast becoming diverse communities for core workers, flexibly employed casual and part-time workers, consultants, contractors & business partners. 4. Certain rigidities have also developed in HRD within this banking system itself because this industry is largely in the public sector. SUGGESTIONS: Following suggestions are very essential to adhere for effective Banking Administration: 1. 2. 3. 4. HR functions to be linked to corporate goals. Shift from Industrial relations manager to Business manager or Commercial manager. Team work is another important and essential soft skill that is necessary in this industry. The HR Professionals have to introduce &improve the adaptability of their structure that will be able to absorb, draw and retain the best. 5. As people are primary asset, it is essential not only to invest in them, but also to ensure that the supporting elements for this asset are such that it can provide the maximum value on a sustainable basis. 6. HRD is to be regularly reviewed against business outcomes as part of strategic and operational planning.

7. To overcome the public sector's hierarchical structure, which gives preference to seniority over performance, is not the best environment to attract the best talent from among the young. RECOMMENDATIONS 1. It is worthwhile to consider broad-basing the courses conducted in these institutions among other higher level educational institutions, so that specializations in the area of banking and financial services becomes an option in higher education curricular. 2. There is a need to adopt global best practices in financial sector regulation and supervision and adapt them to the domestic environment. This largely depends on the functioning and policies of public institutions, such as the RBI as it is increasingly subject to public discussion and debate. 3. This calls for greater transparency more effective communication, and a high degree of professionalism in the bank's staff, are the need of the hour. 4. Continuous up gradations of human resources management strategies with a view to enhancing the level of knowledge, sharpening skills are and also to important the necessary and work culture must be installed. 5. There is a pressing need to develop work practices which encourage efficiency in this banking sector. 6. Incentive structures need to be conceived, supported by appropriate training and motivations, which aligns the employee's goals and orientations with the core competencies and strategic advantages of the institution 7. This service sector has to explore the feasibility of entering into collaborative arrangements with universities and other institutions in India and abroad to identify and provide specialized training in the financial services industry with an ongoing flow of emerging training packages. 8. Information technology is an area where human resources development is critical fortunately, Indian professionals are world leaders in this area and spirit of co operation and partnership between them in banking industries will result in a strong and modern financial system comparable to the best in the world. 9. This committee recommended a system of recruitment from open market, including lateral induction of experts. Conclusion: In a nutshell, it is felt that, the changing environment, the forces of globalization and liberalization and the advances in information and communication technology have major HR implications for the RBI as well. Financial products are becoming increasingly complex and diverse, while the markets in which they trade get progressively deregulated. It also possesses both opportunities & threats particularly for this public sector banks.