CONTENTS

List of figures………………………………………………………………….03

List of tables…………………………………………………………………...03

Acknowledgment……………………………………………………………...04

Executive Summary……………………………………………………………05

1. Introduction………………………………………………………………..06

i. Background of the Organization………………………………06

a) History……………………………………………………..06

b) Achievements……………………………………………....07

ii. Objectives of the Organization………………………………...08

a) Vision……………………………………………………...08

b) Mission…………………………………………………….08

c) Great Aspiration…………………………………………...08

iii. Services provided by the Bank………………………………...08

iv. Organization Structure………………………………………...09

2. Objectives of the study………………………………………………….…10

3. Review of Literature…………………………………………………….…11

i. Training and Development in HRM context…………………...11

ii. Training cycle…………………………………………………..12

iii. Stages of Training Cycle…………………………………..........13

iv. Typical Reasons for Employee Training and Development……14

v. Typical Topics of Employee Training……………………..........15

1

vi. Types of Learning…………………………………………….16

vii. Barriers to Learning…………………………………………..16

viii. General Benefits from Employee Training and Development..17

4. Analysis………………………………………………………………….18

i. Methodology…………………………………………………18

ii. Analysis………………………………………………………19

a) New Performance Management System (PMS)………….20

b) Staff Development Centre (SDC)………………………...20

c) Knowledge Acquisition ………………………………….23

d) Knowledge Enhancement………………………………...23

e) The in-house training plan………………………………..24

5. Key Issues………………………………………………………………..27

i. Increase of the Value of Human Resource………………………27

ii. Employee Satisfaction Survey ………………………………….28

iii. Staff Retention ………………………………………………….29

iv. The Bank’s Image among Prospective Employees……………...29

v. Indicators to Prove the Successfulness of the Bank’s HR…….....30

6. Recommendations………………………………………………………..31

7. Bibliography……………………………………………………………...32

8. Appendixes…………………………………………………………….....33

2

LIST OF FIGURES

Figure 1: Training Cycle………………………………………………12

Figure 2: Overseas Training…………………………………………...26

Figure 3: Local Training……………………………………………….26

Figure 4: Loyalty Intend…………………………………………….…28

LIST OF TABLES

Table 1: Training and Development Costs……………………………....19

Table 2: Training Programs……………………………………………...25

Table 3: No of Staff trained……………………………………………...26

Table 4: Value of Human Resource……………………………………..27

Table 5: Staff Retention…………………………………………………29

Table 6: Response Rate for Vacancy Advertisements……..……………30

3

ACKNOWLEDGEMNT

Mr. Naveen Wickramasingha

(HR Executive, McLarens Group of Companies)

Mr. Rasika Idemekorala

(Manager, Information systems, Biofoods Company Pvt. Ltd)

Mr. U.M.P.C. Udagedara

(Present employee of the Commercial Bank)

Mr. I.N.B.Gedarakombura

(Present employee of the Commercial Bank)

Mr. P.M.C. Gamage

(Present employee of the Commercial bank)

Mr. T.U. Gammanpila

(Present employee of the Commercial bank)

All My Lecturers at IPM Kandy

My Parents

4

EXECUTIVE SUMMURY

The striking successfulness of Commercial Bank of Ceylon PCL in recent years much

depends on its state-of-the-art strategies used in human resource management, one being

proper training and development of its workforce. As its 2008 annual report proudly

states the Bank has managed its various knowledge assets. Among them its team of

people, have been one of the main factors that has enabled the Bank to deliver consistent

value over the years. Not surprisingly, employee satisfaction as visible through various

indicators remains at a higher level, resulting much more motivated, and committed

workforce. Recognizing the methods used by the Bank and their resultant effects on its

employees may be no lesser important for any other organization wanting to make

profits.

5

INTRODUCTION

1. Background of the Organization

History

Having started as the Eastern Bank Ltd at Chatham Street, Colombo in 1920 the

Commercial Bank proudly outstands as one of the oldest banks in Sri Lanka. In tracing

back its long history that has run for nearly a century the second significant point that one

could recognize is the acquisition of the share capital of Eastern Bank Ltd by the

Chartered Bank in 1957. After 12 years the Commercial Bank of Ceylon Limited was

duly incorporated in Sri Lanka (then Ceylon) with Eastern Bank holding 40% of its

equity. The business of the Colombo branch of the Eastern Bank was acquired by the

Commercial Bank of Ceylon Limited in consequence. In 1973, the Chartered Bank took

over the business of the eastern Bank. By 1974, the Commercial Bank was in possession

of a number of its braches scattered through out the country, such as in Kandy, Jaffna,

Matara, Galewela, and Matale, not to mention the main branches within the city limits of

Colombo including Wellawatta and Kollupitiya. In 1984, it acquired the building, which

is now known as the Commercial House. 1

In the wake of open economy, understanding the importance of differentiating its

business, the Commercial Bank of Ceylon PCL ventured on numerous new businesses in

the field of finance. The Commercial Development Company Ltd (in 1980), the

Commercial Insurance Services (Pvt.) Ltd (in 1987) the Commercial Leasing Ltd (in

1988), the Commercial Stock Brokers (Pvt.) Ltd. (in 1991), and the Commercial Fund

Management (Pvt.) Ltd. (in 1992) are some good examples.2

Taking part in changing banking habits of the country, the Commercial Bank introduced

automated teller machines at several branches in 1990. International Comprehensive

Banking System (ICBS) was introduced linking nine metropolitan branches in 1993.

1 http://www.combank.net/newweb/html/abt_tradition.asp accessed on 15.09.20092 http://www.combank.net/newweb/html/abt_tradition.asp accessed on 15.09.2009

6

Online banking system introduced in 1998 and MiniCom service linking supermarket

system and banking system in 1999 are some other important events in the history of the

bank.1

 In 1985, its first foreign branch was established and henceforth, the Commercial Bank

has been successful in extending its business overseas. In 2003 Commercial Bank

acquired Credit Agricole lndosuez (CAl) operations in Bangladesh consisting of 2

branches in Dhaka and Chittagong and the 2 booths in Gulshan and Sonargaon. 2

Achievements

Bank of the Year-Sri Lanka in 2008 (“the Banker”- a premier international

magazine for the finance)

No1.Company in Sri Lanka for the 10th consecutive year in 2008( Global

Financial Awards)

Fitch ratings AA+ in 2008(Fitch ratings Lanka)

The Award for business excellence in 2008 ( the National business Awards

Ceremony)

The Best Annual Report of the year in 2007 ( the Institute of chartered

Accountants of Sri Lanka)

National Best Quality Software Awards in 2006 ( the British Computer

Society)

HR Gold Award in 2008 ( the Association of HR Professionals)

Overall Winner of the National HRM Award in 2002 ( the Institute of

Personal management , Sri Lanka)

1 http://www.combank.net/newweb/html/abt_tradition.asp accessed on 15.09.20092 http://www.combank.net/newweb/html/abt_tradition.asp accessed on 15.09.2009

7

2. Objectives of the Bank

Mission

“Redefining convenience in financial services”.

Vision

“To be the PREFERRED financial services organization in Sri Lanka, having an

international presence by the year 2011”

Great Aspiration

“As a financial services organization we aspire to be nothing but the best. We want to be

a great place to bank at, a great place to work in and a great place to invest in. We want to

be the most respected brand that engages in entrepreneurship according to our strong

corporate values. We also want to be a trail-blazer, a pioneer and lead agent in social and

corporate transformation creating new opportunities for all people and adding value

wherever we are.”

3. Services provide by Bank

Services provided by the Bank include traditional banking activities such as saving

money, borrowing money and leasing as well as modern baking activities such as

e-banking, priority banking, holiday banking, branch networks and ATM facilities.

8

4. Structure of Organization:

The management functions of the bank are performed by several departments of the

organization. Those functions basically include;

Human resource management

Loans management

Assets & liability management

Operation management

Risk management

Data management

Deposit management

Financial management

Marketing management

Cooperate planning & budgeting

Channel/development

Top management of the bank presently comprises twenty eminent persons in the field of

management and there are thirty eight persons at senior management level.

9

OBJECTIVES OF THE STUDY

The ultimate objective of any organization, saved for certain public sector and not-

for-profit organizations, is to maximize its profits. The profitability of such an

organization is reliant on the performance of its workforce which can be improved

and enhanced using suitable mechanisms. One such mechanism or a management tool

is non financial incentives which, if rightly focused at the desired outcome, can help

the organization gain the maximum out of its employees while complementing them.

The objective of this study is to recognize the successfulness of non financial

incentives, focusing on training and development as one of the main HR strategies of

an organization in relation to the statistics showing the level of profitability,

employee turnover, tardiness and absenteeism etc. of the Commercial Bank of Sri

Lanka.

10

REVIEW OF LITERATURE

Training and development in the HRM context

In the HRM context, training and development, which is also known employee

development, human resource development or learning and development, can be

recognized as an organizational activity aimed at bettering the performance of individuals

and groups in organizational settings.1 This process is considered to include three

separate but interrelated activities.2

1. Training

2. Education

3. Development

Training in isolation, has been defined as “a planned process to modify attitude,

knowledge or skill behavior through learning experience to achieve effective

performance in an activity or a range of activities.” 3 Its purpose in the work situation is

to develop the abilities of the individual and to satisfy current and future needs of the

organization.4 Education focuses upon the jobs that an individual may potentially hold in

the future, and is evaluated against those jobs.5 It differs from training on grounds that

education is not aimed at and related to the requirements of one particular job.

Development is the growth or the realization of a person’s ability through conscious or

unconscious learning.6 Its focus is upon the activities that the organization employing the

individual, or that the individual is part of, may partake in the future, and is almost

impossible to evaluate.7

Training Cycle

1http://en.wikipedia.org/wiki/Training_and_development accessed on 14.0920092 http://en.wikipedia.org/wiki/Training_and_development accessed on 14.0920093 Paranavithana, R “Employee Training and Development”, p 34 Paranavithana, R “Employee Training and Development”, p 35 http://en.wikipedia.org/wiki/Training_and_development accessed on 14.0920096 Paranavithana, R “Employee Training and Development”, p 37 http://en.wikipedia.org/wiki/Training_and_development accessed on 14.092009

11

According to Business Dictionary.com, a training cycle is a series of steps or stages that

comprise a complete training program.8 The five phases of this cyclical process are

generally the identification of training needs and analysis, planning and designing

training approach, developing training materials, delivering the training and evaluating

the training.

Training cycle

Figure: 1

Stages of training cycle

8 http://www.businessdictionary.com/definition/training-cycle.html accessed on 14.09.2009

12

Training needs can arise in a number of ways

Stage 1Identification ofTraining needs

Stage 5Evaluation of training

solutions

Stage 2Design of training

solutions

Stage 4Application of training in the court environment

Stage 3Delivery of training

solutions

Stage 1 - Identification of training needs and analysis

This initial stage of the training cycle addresses finding out if there is, or identifying, a

training need. This stage will help those who identify training needs to consider why the

training is required and its expected outcome and impact.

Training needs may be identified at three levels.

1. Organizational level : considering the organization as a whole

2. Occupational level : considering a particular division or task

3. Individual level: considering individual employees who need training.

It is said that “the quality of the training can be no better than the quality of the analysis

permits”.1 Accordingly, identified training needs should be analyzed thoroughly before

proceeding.

Stage 2 – Planning and Design of training solutions

This stage aims to ensure that a systematic and consistent approach is adopted for all

training solutions. A number of decisions may be taken at this level as to what the

learning objectives are, what the target group is, what are the most appropriate methods

of training, what the contents should be and what the evaluation tools are.

Stage 3 – Developing the training materials

This is the stage at which details of the time tables, budgets, training material

requirements, locations, etc are considered. It is said that the outcome of the two previous

stages are integrated into a compete set of materials to assist the delivery of the course at

this stage.

Stage 4 - Delivery of training solutions

1 Paranavithana, R “Employee Training and Development”, p.4

13

This stage of the training cycle ensures that the delivery of the training is effective and

provides opportunities for the learners to learn. This will involve choosing the most

appropriate format for meeting training needs, and taking advantage of different training

methods. The role of the trainer may include a variety of functions ranging from

traditional activities such as presenting to facilitating, motivating, co-ordinating,

managing and evaluating.

Stage 5 - Evaluation of training solutions

This stage is vitally important as it is the means by which the organization is able to

realize how successful it is in training its workforce. As the final phase, it is interlinked

with each previous phases of the cycle. The successfulness of the entire training and

development process as well as that of each separate phase can be assessed and

evaluated.

Typical Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an employee or

group of employees.

When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance improvement

effort

As part of an overall professional development program

As part of succession planning to help an employee be eligible for a planned

change in role in the organization

To "pilot", or test, the operation of a new performance management system

To train about a specific topic

Typical Topics of Employee Training

14

1. Communications: The increasing diversity of today's workforce brings a wide

variety of languages and customs.

2. Computer skills: Computer skills are becoming a necessity for conducting

administrative and office tasks.

3. Customer service: Increased competition in today's global marketplace makes it

critical that employees understand and meet the needs of customers.

4. Diversity: Diversity training usually includes explanation about how people have

different perspectives and views, and includes techniques to value diversity

5. Ethics: Today's society has increasing expectations about corporate social

responsibility. Also, today's diverse workforce brings a wide variety of values and

morals to the workplace.

6. Human relations: The increased stresses of today's workplace can include

misunderstandings and conflict. Training can people to get along in the

workplace.

7. Quality initiatives: Initiatives such as Total Quality Management, Quality

Circles, benchmarking, etc., require basic training about quality concepts,

guidelines and standards for quality, etc.

8. Safety: Safety training is critical where working with heavy equipment,

hazardous chemicals, repetitive activities, etc., but can also be useful with

practical advice for avoiding assaults, etc.

9. Sexual harassment: Sexual harassment training usually includes careful

description of the organization's policies about sexual harassment, especially

about what are inappropriate behaviors.

Types of Learning

15

1. Classroom: This is the most common type of learning. If not handled carefully

it will often turn to be a boring and tiresome experience for the learners.

2. Outdoors: This type of learning is widely used in programs where the practical

knowledge is essential. For instance armed forces. The trainer can make the

learning environment better by shifting the class to a suitable place, since there is

no particular place to study.

3. Computer-assisted learning: The trainer does not actively partake in the

process. The process is based on a predetermined program and accordingly, the

learner lack the opportunity to innovate new ideas etc.

4. Stimulation: This is a highly participative type of learning, and is excellent at

skills training programs.

Barriers to Learning

1. Barriers attributable to the trainee: negative mood, resistance to change,

communication barriers

2. Barriers attributable to the trainer: inappropriate content, wrong techniques,

defective communication, lack of innovation

3. Environmental Barriers: Noise, heat, lack of space, time etc

General Benefits from Employee Training and Development

16

Benefits of training and development programs can be viewed from both employees’

standpoint and the organization’s standpoint.

As for the employees,

Increase of the job satisfaction and morale among employees

Increase of the capacity to adopt new technologies and methods

Increase of employee motivation

Acquisition of professional or/and further educational qualifications

Opportunities to climb up the career ladder

As for the organization,

Increase of the efficiencies in processes, resulting in financial gains

Increase of the innovation in strategies and products

Reduction of employee turnover

Retention of current employees

Enhancing company image

Risk management

ANALYSIS

17

1. Methodology

To evaluate the relationship between the non financial incentive of training and

development and the performance of the employees, two basic methods have been

adopted in this study.

1. asking open ended non structured questions from several current

employees of the Commercial Bank of Ceylon PCL

2. examining the relevant statistics of the Bank

3. examining other reports with regard to training and development programs

conducted by the Bank

In the course of asking questions I focused on the level of job satisfaction, motivation

and the sense of belongingness each employee has and an attempt was made to

compare them with their previous experiences prior to the initiation of training

programs. Examining the data was one successful method, since they could be

presented with a high level of preciseness and accountability. The data investigated

basically included Annual cost for training and development, the number of training

programs conducted, value of Human Resource, staff retention, employee satisfaction

survey, response rate for vacancy advertisements etc. The reports of several training

programs conducted by the Bank available on their website were also very helpful in

creating a proper picture about the programs.

2. Analysis

18

The Bank’s Human Capital policy places people at the centre. “The Bank’s people are its

most valuable asset and the manner in which the Bank has managed its people has been a

crucial contributor to the Bank’s success.”1

Therefore, the Bank’s focus is on nurturing and building the skills and competencies of

staff at various levels and grades to meet current needs and to create a wealth of

knowledge for the future needs of the Bank. Creating a learning culture on the

foundations of knowledge, skills and competence, enhances the ability to create a

motivated team which is necessary to meet the Organization’s determined goals. Training

and Development therefore, remain as an integral factor to personal, professional and

corporate growth. It is on this realization that the Commercial Bank, as its annual report

indicates, expenses a large amount of money annually for employee training and

development programs.

Training and Development Cost

2007 2006 2005 2004

Training & Development Cost (Rs. million) 39.220 35.794 32.504 30.081

Training & Development Cost per Employee (Rs.) 10,473 10,481 10,260 10.507

T&D Cost as a % of Personnel Expenses 1.20 1.40 1.53 1.6

Table: 1

(Source: Annual Report of Commercial Bank of Ceylon PLC 2007)

New Performance Management System (PMS)

1 Annual Report, 2007

19

A The Performance Management System has been installed to establish a performance

driven culture, which has helped the Bank achieve and even exceed its targets. It has been

instrumental in helping the Bank sustain its performance over the years despite difficult

political and economic conditions. In 2007, through a consultative process involving all

stakeholders, the Bank developed the PMS to respond to current and emerging

challenges. The new PMS was implemented at the beginning of 2007 and automated

during the 4th quarter.1

The new PMS consists of 4 pillars:

• Goal setting and accountability

• Review and measurement

• Performance feedback

• Coaching.

Staff Development Centre (SDC)

Having recognized that the Staff development is a “can’t do without” in achieving its

gaols, the bank has implemented a cluster of new programs. The establishment of the

Staff development centre has been a significant mile stone in the way towards having a

better workforce. In the words of the Bank’s Chief HR Officer, Chithral Amarasiri,

"We nurture and build skills and competencies of our staff at various levels to meet

current needs and to create a wealth of knowledge that is required for the future

requirements of the Bank. At Commercial Bank, success is not by accident, it is a

conscious choice and commitment of our people. We now have a new HRD team at the

'Staff Development Center' who are working towards enhancing the capability of our

people with a focused approach in order to achieve our mission of "Redefining

convenience in Financial Services."2

1http://www.combank.lk/newweb/pdf/reports/COMANR2/inpages/knowledge_management/human_capital.html accessed on 14.0920092 http://www.combank.net/newweb/html/abt_staffdev.asp accessed on 14.092009

20

Today, the building standing at No. 1, Union Place, Colombo 02 houses the Staff

Development Center in three of its floors. Where all the required technical facilities and

space (consisting of Conference rooms, lecture rooms, IT Center, Mini Library and

Archives) are available.

SDC has its own vision, which is “to create Excellence through people by way of

working together to build superior talent and achieve greatness.”

Towards this objective, the staff development programs initiated by the SDC include;

Junior Executive Officer Orientation Program

Train the Trainer Program

Outbound training activity

Credit Program

Regional Training Program- Galle & Central Training Center

Jaffna Regional Development Program

Banking Trainee Induction Program

Some of main functions of SDC include;

Identifying training requirements and developing a comprehensive training plan

for the year

Designing and developing programs

Managing and conducting training on areas of technical skills & soft skills

Facilitating the management of overseas training

Organizing the internal quiz competitions

Publication of the official bank newsletter-"COM PULSE"

Knowledge management initiatives

Library facilities

21

Knowledge Acquisition

Structured knowledge acquisition is a key aspect of the Bank’s knowledge management

strategy. The Bank’s knowledge acquisition plan for 2007 was formulated taking to the

22

account the rapid growth of the Bank, the branch expansion, other initiatives and the

challenging political context.

An exhaustive skills inventory was done early in 2007 in order to assess skill gaps that

exist and to determine concretely the training and developmental interventions that need

to be made. The HRM Division interacted closely with the line managers and specifically

with the Operations Division to review the Bank’s skills inventory. The inventory also

included a detailed assessment of knowledge gaps at the branch level and the

identification of appropriate interventions. The Bank’s job rotation policy provided an

additional avenue for staff to acquire new knowledge and skills. 1

Knowledge Enhancement

Knowledge enhancement, which became the key HR strategy of the bank in 2008,

focuses on enhancing the capabilities of the staff through performance coaching2

Learning processes, succession management, leadership capabilities and ensuring the

management’s commitment are some key areas which are important in this regard.

The in-house training plan

The in-house training plan, formulated by the Bank Training Centre is designed in

accordance with the Training Needs Analysis which is compiled based on information,

1http://www.combank.lk/newweb/pdf/reports/COMANR2/inpages/knowledge_management/human_capital.html accessed on 14.0920092 Annual Report of the Commercial Bank of Ceylon PCL , 2008

23

data and recommendations received through performance appraisals and questionnaires

filled in by heads of department and regional managers. The significant factors integrated

into the HR training plan include:

• The need to train and develop a team aligned to the vision and mission of the Bank,

• Strategic focus given to business growth, cost management, HR, productivity, control

and

Compliance, portfolio quality and customer care,

• The need to develop managerial competence among executives and supervisory staff,

• Continuous training on service quality and achieving customer service excellence

levels,

• Create a marketing and selling culture,

• Understand the importance of self management in realizing individual and

organizational

Objectives,

• Pursue multi-skirling to support succession planning and job rotation.

During the year 2008 SDC has conducted over 389 training program in which 117,649

man-hours have been put in towards the development of the staff.1 204 internal training

programs and 141 external local programs were conducted and last year, 88 staff

members participated in overseas training which included seminars, conferences and

study visits to correspondent banks. Eminent overseas trainers from India, the United

Kingdom and Malaysia conducted training on Risk Management, Basel II, SMEs, and

Credit Management for a number of their officers.2

1http://www.combank.net/newweb/html/abt_staffdev.asp accessed on 14.092009

2http://www.combank.net/newweb/html/abt_staffdev.asp accessed on 14.092009

24

More trainers were also mobilized during the year to implement and achieve the far

reaching goals of The Training Plan, which included a total of 172 internal and external

training workshops, retreats and programs covering a total of 3789 team members over

2432 training hours which was supported by a comprehensive e-learning system. The

main T&D programs conducted by HR this year we refocused around the subject areas of

Management/Leadership, Operations, Credit, International, Skills Development,

Information Technology, Self Development and Customer Care. Stepping up the

emphasis on customer care, we conducted an unprecedented 22 programs within the

branch network on customer service this year and in complementing the holistic features

of our training, also held a series of programs on Personal Grooming and Image Building

in 15 branches.

Training Programs

Year External Internal Overseas

No. of

programs

No. of

Participants

No. of

Programs

No. of

Participants

No. of

Programs

No. of

Participants

2007 210 931 399 7,798 42 69

2006 188 1142 372 6,010 59 98

2005 154 439 364 6,490 41 56

2004 154 376 331 6,449 45 6

Table: 2

(Source: Annual Report of Commercial Bank of Ceylon PLC 2007)

25

Figure: 2 Figure: 3

26

Table: 3

KEY ISSUES

The employees’ attitude towards the bank has significantly been bettered in recent years.

With a high degree of motivation and a sense of belongingness they are willing to partake

in the Banks’ success.

Increase of the Value of Human Resource

As a direct result of the training programs, the value of the Human resource of the bank

remains at a higher level. Despite negligible fluctuations it has been increasing in recent

years.

Value of Human Resource

Year No. of Employees Total Value of

Human Resource

Rs.Bn

Value of Human

Resource per

Employee Rs.Mn

2007 3,745 38.294 10.225

27

2006 3,415 37.925 11.106

2005 3,168 33.830 10.679

2004 2,863 27.014 9.436

2003 2,648 23.867 9.014

       

  Table: 4

 (Source: Annual Report of Commercial Bank of Ceylon PLC 2007)

Employee Satisfaction Survey

Employee satisfaction surveys help employers measure and understand their employees'

attitude, opinions, motivation, and satisfaction. Employee satisfaction is the terminology

used to describe whether employees are happy and contented and fulfilling their desires

and needs at work. Employee satisfaction is often measured by anonymous surveys

administered periodically that gauge employee satisfaction in areas such as management

and teamwork. One such survey is loyalty intend. The figure explaining the data with

regard to the Commercial Bank is shown below.

Loyalty Intend

28

Figure: 4

Staff Retention

Staff retention is another key indicator that shows the successfulness of the HR policies

of an organization. The statistics show that the bank has been able to maintain a high

degree of staff retention for the past few years.

Staff retention

Staff Retention 2007 2006 2005 2004

Staff Retention - Sri Lanka (%) 96.16 96.13 97.37 97.26

29

Staff Retention - Bangladesh (%) 90.40 91.53 94.44 85.95

Total 93.28 93.83 95.91 91.61

Table: 5

(Source: Annual Report of Commercial Bank of Ceylon PLC 2007)

The Bank’s Image among Prospective Employees

When an organization practices advisable HR policies its reputation grows boundlessly

and the potential employees from other organizations as well as the new entrants attract

to that organization. The importance of this aspect of an organization lies in the fact

that it ensures that the organization can employee a qualified and competence workforce

in a competitive atmosphere. How successful the organization is in maintaining its image

outside the organization can be recognized by several indicators. One of which is the

response rate for vacancy advertisements. These data concerning the Commercial Bank

are advisable.

Response Rate for Vacancy Advertisements

2007 2006

Banking Trainees (Approximately) 17,700 15,000

Management Trainees (Approximately) 2,500 1,000

Unsolicited Applications (Approximately) 1,000 3,000

Table: 5

(Source: Annual Report of Commercial Bank of Ceylon PLC 2007)

30

Indicators to Prove the Successfulness of the Bank’s HR Strategies

• A competent, committed and contented workforce demonstrated by the Employee

Satisfaction.

• A professional target-driven team equipped with the required competencies, skills and

knowledge to optimize their performance.

• Bank considered one of the preferred employers in the financial services industry in Sri

Lanka.

• Fast career progression exemplified by a relatively young managerial team.

• Employee turnover at senior management and corporate management level remaining at

a low1.67%, indicative of the Bank’s ability to retain these specialist jobs and meet career

goals and aspirations.

• No industrial disputes for the last six years due to timely signing of Collective

Agreements and remuneration and rewards remaining above market rates.

• Remaining mindful of all ILO conventions and maintaining internationally accepted

labor standards.

RECOMMONDATIONS

31

Training and development programs can be improved by understanding the personalities

of trainees.1 The ongoing reflection and discussions between supervisor and learner are

far more important than results produced by learners during the training and development

process. Adults Learn Best by Applying Information to Current, Real-World Needs by

Exchanging Feedback about Experiences.2 The more consideration placed on such

realities the more productive the training and development programs are.

BIBLIOGRAPHY

1. Annual Report of the Commercial Bank of Ceylon PCL, 2008

1 http://www.personneltoday.com/articles/2008/05/23/45981/workshops-show-how-to-improve-training-by-understanding-the-personalities-of-trainees.html accessed on 15.0920092 http://managementhelp.org/trng_dev/gdlns.htm accessed on 15.092009

32

2. Annual Report of the Commercial Bank of Ceylon PCL,2007

3. Ruchira Paranavithana, “Employee Training and Development”

4. http://www.personneltoday.com

5. http://managementhelp.org

6. http://www.combank.lk

7. http://www.businessdictionary.com

8. http://en.wikipedia.org

33