article on banks

8/17/2019 Article on Banks

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ISSUES IN HUMAN RESOURCE DEVELOPMENT IN INDIAN BANKS

(AN EMPIRICAL EVALUATION)

Dr.A.Raghu

Assistant Pr!"ssr

Indira Gandhi National Tribal UniversityAmarkantak, Madhya Pradesh

ABSTRACT

This study was undertaken from Jan`13 to March `13 on a sample of 100 respondents

who were bank staff to understand their perceptions about HR policies of Indian

anks! "ata was collected usin# a structured $uestionnaire! The collected data was

analy%ed usin# #raphical representations to a&oid the bias and errors normally

frau#ht with the statistical tools! 'nalysis showed that the HR policy in anks is yet

to e&ol&e to a hi#her le&el because it is still in the sta#es of what can be called (I!R!

or )*R+,--*./ sta#e where as the pri&ate sector has reached the le&el of HRM

where employee and his producti&ity are the centre of all corporate policies today!

Hence suitable recommendations ha&e been made to e&ol&e HRM in the anks to the

net le&el!

KE# $ORDS% HR Policy, Bank HR vision, Sta Motivation, I!R! " Personnel sta#e,

HRM $ra

&. Intr'utin

Bankin# ind%stry in India is one o the most diversiied and hetero#eneo%s in terms o

o&nershi'( co)e*istence o 'rivate and '%blic sector! It is one o the best e*am'les o

'eace%l co)e*istence o t&o entirely dierent c%lt%ral systems in the services sector!

+o%'led &ith that, the co%ntry has a lar#e n%mber o orei#n banks &ith alto#ether a

dierent &ork c%lt%re and climate! The sim%ltaneo%s e*istence o so many ty'es o &ork

ethos, systems and 'rocesses are tr%ly symbolic o the #reat Indian %nity amon#st diversity!

Not&ithstandin# the act that lots o eorts have #one into brin#in# technolo#ical " 'rocess

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con#r%ence, it is really %nort%nate that very little has been done on the h%man reso%rce

ront in this re#ard!

Unort%nately, '%blic sector bankin# has been the bi##est victim, bein# #overned by

o%tdated " 'rohibitive sets o #overnment #%idelines! The Mana#ement oten com'lainslack o ade%ate 'o&er and le*ibility( the Trade Unions oten look at any directional chan#e

&ith a sense o s%s'icion( ma-ority o the &orkorce remains in dream)&orld o the 're)

liberali.ed scenario o &ork sec%rity! The res%lt is that '%blic sector banks are least

concerned abo%t h%man reso%rce mana#ement and reorms thereto and conse%ently remain

%nder)'rod%ctive!

Tho%#h renamin# o Personnel de'artments to HR de'artments took 'lace %ite a e& years

a#o in some o the '%blic sector banks, the &ork 'rocesses " c%lt%re in many o them tilltoday remain o%tdated and are not in a 'osition to meet chan#in# e*'ectations o the h%man

talent &ithin! The sco'e o this 'a'er is limited to address some o the %ndamental iss%es

in areas o h%man reso%rce mana#ement ront in the '%blic sector bankin# in India!

There is a need or introd%ction o ne& technolo#y, skill b%ildin# and intellect%al ca'ital

ormation! The most im'ortant need in this service ind%stry is nat%rally the HR/! /%rin#

the early 'hase o bankin# develo'ment in India ater inde'endence, o''ort%nities or

em'loyment o the ed%cated man)'o&er &ere relatively limited! This sector &as the

'reerred em'loyer or the ed%cated 'ersons in the co%ntry in addition to civil services! In

recent years, this 'osition has chan#ed dramatically! +ertain ri#idities have also develo'ed

in HR/ &ithin the bankin# system as this system is '%blic sector! Its hierarchical str%ct%re

#ives 'reerence to seniority over 'erormance, and it is not the best environment or

attractin# the best talent rom amon# the yo%n#!

. OB*ECTIVES

0! To revie& the HR 'olicies and 'ractices ollo&ed by banks in India !

1! To identiy the 'roblems aced by the banks in res'ect o HR 'olicies and 'ractices!!

2! To make recommendations or HR rame&ork or banks in India!

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3! To identiy develo'mental as'ects or %t%re o HR in banks!

+. METHODOLO,#

The st%dy incl%des 'rimary and secondary data collection, analysis and re'ort!!

S"n'ar- 'ata% rom books, 'eriodicals, internet, re'orts o the bankin# ind%stry,

ind%stry association re'orts, bank records and other data &hich is readily available!

Priar- 'ata% +ollected thro%#h a %estionnaire administered to the res'ondents in the

sam'le selected!

D"/0hi M"th'% The data collected has been veriied &ith ield e*'erts s%ch as retired

bankers and senior ac%lty!

1. SAMPLIN,

Primary data &as collected rom 044 em'loyees o the banks as %nder %sin# a str%ct%red

%estionnaire5

Bank Mana#ers5 64

Bank sta5 04

7ield e*'erts5 04

Retired senior em'loyees o banks5 04

RBI sta5 04

8thers5 04

Sam'lin# &as based on stratiied convenient sam'lin# method!

2. SCOPE AND LIMITATIONS O3 THE STUD#

/ata collected is based on a short intervie& taken the research e*ercise &as cond%cted

&ithin a limited d%ration! So a detailed st%dy co%ld not be made! The indin#s and

concl%sions are based on kno&led#e and o the res'ondent! 9ack o s%''ort rom the

mana#ement side &hile data collection d%e to their 'olicy o maintainin# secrecy!

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The sam'le consisted o 044 res'ondents rom Hyderabad only and may not re'resent all

India data! Ho&ever the %ndamental iss%es identiied in this small st%dy may be

e*tended to all India level based on a lar#e scale st%dy!

!

:! R"4i"5 ! Lit"ratur"

The literat%re has em'hasi.ed the im'ortant role 'layed by the h%man

com'onent in the com'etitiveness and res'onse ca'acity o or#ani.ations, and this is

relected in n%mero%s '%blications and research st%dies that have a''eared in recent years

;Barney, 0


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d? +oo'eration

8'tions A B + /

No o res'ondents 66 14 06 04

3! H%man reso%rce mana#ement hel's im'rove)))))))))))))))))))))in banks

a? Prod%ction

7) Pr'uti4it-

c? Proits

d? Po&er

8'tions

A B + /


6! The amo%nt o %ality o%t'%t or amo%nt o in'%t means

a? Prod%ctivity b? Prod%ction

) Sa/"s inr"as"

d? Increase in 'roits

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8'tions A B + /


:! Res'ondin# to em'loyees and involvin# them in decision makin# is reerred to as

a) 8ua/it- ! 5r9 /i!"

b? A%tonomy

c? $m'o&erment

d? Preaction

8'tions A B + /

No o

res'ondents

@4 04 06 6

@? =hich one o the ollo&in# becomes a creative actor in 'rod%ctionC

a? 9and

b? +a'italc? +ons%mers

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8'tions A B + /


04? /e'loyment o &hich reso%rce is diic%lt to master

a) Huan

b? 9andc? +a'ital

d? Nat%ral

8'tions A B + /


00? The oc%s o H%man Reso%rce Mana#ement revolves aro%nd))))))in banks

a? Machine

b? Motivation

c? Money

') M"n

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8'tions A B + /

No o res'ondents 04 06 6 @4

01? D%ality) oriented bankin# or#ani.ation 'rimary concern centers aro%nd

a? +oordination

b? +omm%nication) Huan R"sur"s

d? /isci'line

8'tions A B + /


02? D%ality #oals re%ire ali#nment &ith)))))))))in banks

a? Prod%ction

b? Huan R"sur"s

c? 7inance

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d? P%rchase

8'tions A B + /


03? /emand or h%man reso%rces and mana#ement in banks is created by

a? E:0ansin ! in'ustr-

;b? Shorta#e o labor

c? Ab%ndance o ca'ital

d? +ons%mer 'reerences

8'tions A B + /


06? Mana#ement %nction in banks arises as a res%lt o

a? +ons%mer 'reerences

;b? Ab%ndance o ca'ital

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;c? $*'ansion o ind%stry

d? Shrtag" ! /a7r

8'tions A B + /


0:? Union %nction arises as a res%lt o em'loyees)))))))in banks

a? Problem o comm%nication

b? 9on#in# or belon#in#

c? Dissatis!atin

d? +han#e in technolo#y

8'tions A B + /


0@? H%man Reso%rce Mana#ement is 'rimarily concerned &ith)))))))in banks

a? Sales

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b? Di"nsins ! 0"0/"

;c? $*ternal environment

d? +ost disci'line

8'tions A B + / No o res'ondents 06 64 16 04

0>? H%man Reso%rce Mana#ement aims to ma*imi.e em'loyees as &ell as bankEs

;a? E!!"ti4"n"ss

b? $conomy

c? $iciency

d? Perormativity

8'tions A B + / No o res'ondents 66 04 14 06

0


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;a?Insi#niicant

b? Mar#inal

;c? Narro&

d? $i'"

8'tions A B + /


14? H%man Reso%rce Mana#ement %nction does not involve))))in banks

a? Recr%itment

b? Selection

c? Cst ntr/

d? Trainin#

8'tions A B + /


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10? =hich one is not the s'eciic #oal o h%man reso%rce mana#ement in banks C

a? Attractin# a''licants

b? S"0arating "0/-""s

c? Retainin# em'loyees

d? Motivatin# em'loyees

8'tions A B + /


11? Identiy &hich one is an added s'eciic #oal o h%man reso%rce mana#ement in banks

a? R"training

b? 9earnin#

c? Unlearnin#

d? Se'aratin#

8'tions A B + /


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12? Identiy the to' most #oal o h%man reso%rce mana#ement in banks

a? 9e#al com'liance

b? +om'etitive ed#e

c? =ork orce ada'tability

d? Pr'uti4it-

8'tions A B + /


13? To achieve #oals or#ani.ations re%ire em'loyees

a? +ontrol

b? /irection

c? Cit"nt

d? +oo'eration

8'tions A B + /


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16? H%man reso%rce mana#ement hel's im'rove)))))))))in banks

a? Prod%ction

b? Pr'uti4it-

c? Proits

d? Po&er

8'tions A B + /


1:? The amo%nt o %ality o%t'%t or amo%nt o in'%t means))) Fin banks

a? Pr'uti4it-

b? Prod%ction

c? Sales increase

d? Increase in 'roits

8'tions A B + /


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im'lementation o the Ne& Pension Scheme ;NPS? &ill to' the a#enda! =ith a lot o

senior 'eo'le in the banks retirin# or #oin# to and many more %ittin# or #reener

'ast%res, banks are aced &ith an ac%te shorta#e o sta! Hi#h attrition and retirements

have created a vac%%m at the to' and middle levels in the system! Bankers are seein#

'ersonnel iss%es as a ne& risk actor in the sector! The iss%e &ill be hi#hli#hted in the

meetin#! As the NPS has not 'icked %', des'ite the #overnments eorts, M%kher-ee is

likely to ask banks to make more o their branches NPS)enabled! A ma-ority o '%blic

sector banks had been re#istered as 'oints o 'resence ;PoPs? or its im'lementation!

Ho&ever, only a e& branches o these banks are NPS)enabled! The bankin# division has

already &ritten to the banks in this re#ard!

+redit lo& to vario%s sectors like ho%sin#, a#ric%lt%re, inrastr%ct%re, small and medi%m

enter'rises, ed%cation and minority comm%nities, as &ell as im'lementation o the

interest s%bsidy scheme on ho%sin# or the %rban 'oor and the inancial incl%sion 'lan or

1404)01 &ill be disc%ssed! The iss%es &ere initially 'lanned to be taken %' at the o%r

.onal meetin#s in Patna, M%mbai, +handi#arh and Hyderabad in the 'ast t&o months!

Ho&ever, the items co%ld not %ellin# s'ec%lation o a rise in interest rates!

HRM 'ractices are o%nd to sho& a considerable 'ositive im'act in aectin#

'erormance!

3i4" ritia/ HR issu"s in 7an9ing 5"r" i'"nti!i"' !r 0/i- att"ntin as un'"r

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(&) Perormance mana#ement,

() $%al 'ay demands or com'arable &orth,

(+) Trainin# and develo'ment,

(1) Ho& to best motivate individ%als, and

(2) Providin# com'etitive com'ensation beyond the bo%nds o ones o&n ind%stry!

Altho%#h the com'ensation area is a dominant concern, very e& banks have develo'ed

eective com'ensation 'lans!

The st%dy also o%nd that the bank &ith hi#h disci'linary action &ere not able to rea' a

s%stained 'erormance advanta#e, as indicated by the si#niicantly ne#ative association

&ith em'loyee 'rod%ctivity! 8verall, the res%lts s%##est that HR coni#%rations that are

more diic%lt or com'etitors to imitate #enerally had 'ositive relationshi's &ith bank

'erormance! 8n the other hand, beca%se these indin#s are relatively novel and

e*'loratory, the attem't sho%ld be vie&ed sim'ly as an attem't that re%ires %rther

e*'lication and reinement in %t%re st%dies! The si#niicant relationshi's sho&n by this

st%dy bet&een HR 'ractices and irm 'erormance ;em'loyee 'rod%ctivity? are consistent

&ith instit%tional theory and the reso%rce)based vie& o the Banks!

&!

1! Bakshi, S! ;1442?! +or'orate Governance in Transormation Times! IBA B%lletin,

16;2?5 30):0!Bhattacharya, A! ;0


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@! ohli, S! S! ;1440?! Indian Bankin# Ind%stry5 $mer#in# +hallen#e! IBA B%lletin,

12;2?5 3>)63!>! Mohan, R! ;1442?! Transormin# Indian Bankin#5 In Search o a Better Tomorro&!

IBA B%lletin, 16;2?5 22)34!

!

04! Sarkar, P!+! " /as, A! ;0

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