Professional Documents
Culture Documents
1
Human Resources is a business field focused on maximizing
employee productivity. Human Resources professionals manage the human
capital of an organization and focus on implementing policies and processes.
They can be specialists focusing in on recruiting, training, employee relations or
benefits. Training and development professionals ensure that employees are
trained and have continuous development.
2
Human resources take active role in the modern economic
scenario of any country. The abundant physical resources alone cannot benefit the
growth of the country without human resource component, which transforms
physical resources into productive resources. In fact, the differences in the level of
economic development of the countries are largely a reflection of the differences
in quality of their human resources.
3
MEANING
Management
4
to achieve as individuals. Managing has been essential to provide the coordination
of individuals efforts. Management does not perform specific jobs. It motivates
other people to perform specific jobs. It indicates a total process of executive
control in business.
5
Definitions
6
NATURE OF HUMAN RESOURCE MANAGEMENT
7
someone else. However, he may secure advice and help in managing people from
experts who have special competence in personnel management and industrial
relations.
3. Basic to all Functional Areas: Human Resource Management permeates all the
functional area of management such as production management, financial
management, and marketing management. That is every manager from top to
bottom, working in any department has to perform the personnel functions.
(i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees),
8
7. Based on Human Relations: Human Resource Management is concerned with
the motivation of human resources in the organisation. The human beings cant be
dealt with like physical factors of production. Every person has different needs,
perceptions and expectations.
The managers should give due attention to these factors. They require human
relations skills to deal with the people at work. Human relations skills are also
required in training performance appraisal, transfer and promotion of
subordinates.
9
Legacy of HRM
These are (a) the Western context (b) the Indian context.
10
bargaining being adopted to settle issues pertaining to wages and working
conditions.
11
Federal interest gave rise to manpower management
department. The members of these departments were technically competent in
testing, interviewing, recruiting, counselling, job evaluation negotiation and
collective bargaining. They also acquired expertise in wage and salary
12
century B.C. to the latter half of 10th century B.C., the relationship of employer-
employee was marked with justice and equity.
In 1890, the first labour organisation was formed and was known as Bombay Mill
Hands Association. This association started working for improving the work
environment and for getting the workers their rightful dues. The success of this
association Few amongst these were Printers Union Calcutta (1905), Postal
Union, Bombay (1907) and Madras Labour Union (1918).
The union movement was very weak till the early thirties.
But the situation showed marked improvement 5 years before and after the
Second World War. After independence, the activities of the personnel department
have multiplied. Human resource department is expected to take care of welfare
activities, employment, safety, training, wage and salary administration,
promotions, transfers, lay-off, improvement in living and working conditions,
health services, safety measures, prevention and settlement of disputes, etc
13
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
(iv) To ensure respect for human beings by providing various services and
welfare facilities to the personnel.
14
(v) To ensure reconciliation of individual/group goals with those of the
organisation in such a manner that the personnel feel a sense of
commitment and loyalty towards it.
(i) Human Resource Planning, i.e., determining the number and kinds of
personnel required to fill various positions in the organisation.
15
CORE ELEMENTS OF HRM
People: Organizations mean people. It is the people who staff & manage
organizations.
SCOPE
16
From entry to the exit of an employee in the organization;
HRM Activities: -
1. HR Planning
2. Job Analysis
3. Job Design
7. Performance Appraisals
8. Job Evaluation
10. Motivation
11. Communication
12. Welfare
17
7 Categories of Scope of HRM:
1. Introduction to HRM
2. Employee Hiring
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM
18
Importance
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 thebanks
human resource that would deliver this.
19
It is a common complaint among bank executives that skilled
manpower is in short supply:
20
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
1.Managerial Functions
2.Operational Functions
1.Managerial Functions:
Planning:
21
forecasting of personnel needs, changing values, attitudes & behavior of their
employees & their impact on the organization.
Organizing:
Directing:
After planning & organizing comes the execution of plan. The willing
& effective cooperation of employees towards the achievement of organizations
goals has to be brought about by proper direction. Identifying & utilizing
maximum potentials of people is possible through motivation & command.
Direction, therefore, is an important managerial function in ensuring optimum
employee contribution.
Co-ordinating:
Controlling:
22
After planning, organizing, directing & co-ordinating, the various
activities, the performance is to be verified in order to know, at various points of
time, whether the activities are performed as per plans & directions. It involves
checking, verifying & comparing actual with the plans, identification of
deviations if any & correcting the deviations. Auditing training programmes,
analysing labour turnover, overseeing morale surveys, conducting exit interviews
are some of the controlling functions of personnel management
Operative Functions:
23
ORGANISATIONAL DESIGN----JOB DESIGN----JOB ANALYSIS
24
Employment:
1. Job Analysis:
Providing the guidelines, plans & the basis for job design & for all
operative functions of HRM.
This is the process which assures the organization that it will have
adequate number of qualified persons, at requisite times, performing in a way to
satisfy the needs of the organization & also provide satisfaction to the individual
employee, so employed.
25
a) Estimating the present & future requirements of human resources
based on objectives & long range plans of the organization.
3. Recruitment:
It involves:
26
4. Selection:
This includes:
d) Checking of references.
5. Placement:
27
3. Correcting wrong/misjudged placements, if any.
It includes:
Performance Appraisal:
It includes:
28
1. Enunciating policies, procedures & techniques.
Training:
It includes:
Management Development:
It includes:
29
1. Identification of the areas in which management development is
needed.
3. Motivating executives/managers.
It includes:
30
3. Promotionit deals with the upward assignment of employees to
occupy higher positions (with better status & pay) in consonance
with resources of employees & job requirement. The department
must ensure that:
Organisational Development:
Human Relations:
31
& employees & the management on the other, create a sense of working
relationships between workers & management & trade unions.
32
HRM Objectives Supporting HRM Functions
Social Objectives Legal Compliance Benefits
Union Management Relations
Organisational Objectives Human Resource Planning
Employee Relations
Recruitment & Selection
Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment
OBJECTIVES
Societal Objectives:
To be ethically & socially responsible to the needs &
challenges of the society while minimising the negative impact ofsuch
demands upon the organisation.
Organisational Objectives:
To recognise the role of HRM in bringing about
organisational effectiveness. HRM is only means to achieve & assist the
organisation with its primary objectives.
33
Functional Objectives:
To maintain departments contribution & level of
services at a level appropriate to the organisations needs.
Personal Objectives:
To assist employees in achieving their personal goals,
at least in so far as these goals enhance the individuals contribution to the
organisation. This is necessary to maintain employee performance &
satisfaction for the purpose of maintaining, retaining & motivating the
employees in the organisation.
i. To create & utilise capable & motivated workforce to achieve the basic
organisational goals.
ii. To establish & maintain proper & sound organisational structure & healthy
working relationships among all its employees.
iii. To ensure the integration of individual groups goals with those of the
organisation.
iv. To create facilities for individuals & groups to develop so as to be in tune
with the growth of the organisation.
v. Proper & optimum utilisation of human resources.
vi. To ensure adequate & equitable wages, incentives & other benefits so that
satisfied individuals & groups are motivated to take on challenges.
34
vii. To maintain high employee morale.
viii. To continuously upgrade the skills & knowledge of the employees, by
training & development programmes.
ix. To ensure opportunity for participation in management to the extent
possible.
x. To provide acceptable & effective leadership.
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 organisations
vary substantially. What is little known but of greater importance is thateach of
these banks follow very distinct HR practices which have contributed,
substantially, to the business processes.
35
As regards RRBs, most of them adopt the HR policies of sponsor banks,
which are not appropriate for their special nature.
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 adopted HRM 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.
36
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.
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 organisation. This also
underlies a belief that anyone can occupy any desk. In such a system
specialisation is the loser. Recruitment 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.
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 accont 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
37
joining the organisation 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.
Role:
The role of the Human Resource Department is to create the climate &
conditions in which management throughout the Bank will be enabled to optimise
the individual & collective contribution of all employees to the short & long-term
success of the Bank.
Responsibilities:
38
To continuously monitor the Banks strategies to ensure that HR policies
are approriate & that employee numbers & skills are fully supportive of
such strategies.
To deliver a full range of personnel services in support of line management.
These services include manpower planning, recruitment/transfer,
remuneration, training & employee welfare.
To support line management in their day-to-day management of the
workforce by providing advice & consultancy on personnel &
performance management issues.
39
the banks products nor directly for increasing business but to process existing
accounts. They have been regarded as an overhead rather than a resource.
Until the 1980s, competition between the Banks has been limited, banks
operating as an oligopoly& Governments concern with maintaining economic
stability with limits to lending, & control over interest rates facilitated this. The
oligopoly fed through to the management of staff as national wage bargaining
minimized competition for labour. However deregulation led to the collapse of the
national system & a questioning of the old employment practices
40
by specialized hiring agencies who may take up the job of hiring in case of
large number of vacancies.
Right People:
The most difficult agenda of HRM across the banking
sector is to retain the right people. Sudden growth of retail banking &
other services has put pressure on HR Managers in banks to engage more
professionals within shorter span of time thereby attracting manpower in
other banks on attractive packages has made the job market very
competing.
41
Everybody in the bank wants to work in the preferential
department, preferential location, city of his own choice & boss of his
liking. An administrative deviation from any of these results in lowered
job satisfaction.
42
TRAINING & DEVELOPMENT
43
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
employees 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.
Training & Education Differentiated:
TRAINING EDUCATION
44
Development:
Give a man a fish, & you give him meal. Teach man to fish, & you
give him a livelihood.
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 dependent on training.
Generally people think that training & development are one & the same, but there
are many differences between them. They are as follows:
TRAINING DEVELOPMENT
45
Duration:
Managerial/Operative
Personnel:
Training is normally
It is directed at
directed at operative
managerial personnel to
employees & related to
acquire conceptual &
technical aspects.
theoretical knowledge.
Specific/General:
Method:
Cost Involved:
46
Who Imparts:
Frequency:
Theoretical/Practical
Aspects:
Emphasis is placed on
Emphasis is placed on theoretical & conceptual
practical or technical aspects.
aspects of work.
ON-THE-JOB
OFF-THE-JOB
METHOD
METHOD
VESTIBULE
JOB ROTATION
COACHING TRAINING
ROLE PLAYING
JOB INSRTUCTIONS
LECTURE METHOD
COMMITTEE
CONFERENCE OR
47 DISCUSSION
PROGRAMMED
DEVELOPMENT IN BANKS
48
RECRUITMENT
Meaning and definition:
Objectives of recruitment
Process of Recruitment:
49
Recruitment refers the process of identifying and attracting job seekers so
as to build a pool of qualifies applicants. This process comprises of five
interrelated stages, viz,
Planning
Strategy development
Searching
Evaluation and control
The ideal recruitment process is the one which attracts relatively larger
number of qualified applicants who will survive the screening process and accept
positions with the organization, when offered to approach the ideal people,
individuals responsible for recruitment process must know how many types of
employees are needed, where and how to look for individuals with appropriate
qualifications and interests, what inducements to use for various types of
applicants group, how to distinguish applicants who are unqualified from those
who have a reasonable chance of success, and how to evaluate their work.
SELECTION
Definition
50
Requirements of the job to be filled have been clearly specified.
Employee specifications (physical, mental, social, behavioral etc) have
been clearly specified.
Candidates for screening have been attracted.
Selection Process:
51
3. Preliminary Interview: The next step that tag along the selection
procedure is a preliminary interview wherein the applications are
scrutinized so as to eliminate unqualified applications. Preliminary
Interviews are short. This interview thus provides information
about the candidate related to the job or personal specifications.
4. Selection Test: After passing through the interview the next stage
that applicant has to prove himself on are the selection tests. There
are different types of selection tests for different levels of the
organization and that too is further differentiated within different
types of organizations. Some of the most common and well-known
tests that an applicant has to go through are;
a. Ability test
b. Aptitude test
c. Personality tests: Which is common mostly for the higher
level of management are given to measure a prospective
employees motivation to function in a particular working
environment.
d. Internal test: to measure an individuals activity
preferences.
e. Graphology Test: is an art wherein the individuals
handwriting is seen and accordingly his personality traits
are derived by the way he writes.
f. Polygraph Test: Are designed to ensure accuracy of the
information given in the applications.
g. Medical Tests: Reveal physical fitness of the candidate.
h. Drug test: Help to ensure the presence of illegal or
performance-affecting drugs.
5. References and background checks: Many employer request
names, address, and telephone numbers or references for the
purpose of verifying information and, perhaps, gaining additional
background information on an applicant.
6. Selection Decision: After collecting data from all the preceding
steps, this is the most crucial step in the entire selection process.
The main difference between the preceding stages and this is that
52
former is used to short list the number of candidates and later one
is to make a final decision from the pool of individuals who pass
the tests, interviews and reference checks. The view of line
manager will be generally considered in the final selection because
it is he/she who is responsible for the performance of the new
employee. The HR manager plays a crucial role in the final
decision.
53
must be residing in some other city and for such other reasons.
Company may also want the appointee to delay in joining the job
because the job may require undergoing some training program.
Decency demands that rejected applicants must be informed about
their non-selection. These applicants data must be used for future
references.
9. Contract of employment: After the job offer is made and the
candidates accept the offer, certain documents need to be executed
by the employer and the candidate. One such document is
Attestation form. This form contains vital details about the
candidate, which are authenticated and attested by him/her, which
could be used for future reference.
Another document is contract of employment. This document
contains the terms and conditions of employment like designation,
perks, term of job and so on. The information written in the
contract may vary according to the level of the job.
The main drawback of the contract is that it is difficult to enforce
them.
10. Concluding the selection process: The selection process will not
end with executing the employment contract. The step is reassuring
the candidates who have not been selected. Such candidates must
be told that they were not selected, not because of any serious
deficiencies in their personalities, but because their profiles did not
match the requirements of the organization.
11. Evaluation of selection process: The broad test if the effectiveness
of the selection process is the quality of the personnel is hired. An
organization must have competent and committed personnel. The
selection process, if properly done, will ensure availability of such
employees. Audit must be conducted by the people who work
independent of the HR department.
54
360 degree selection or participative selection: Normally supervisors
administer the selection test and interview. They judge the fit between the
job and the candidate. But the employee skills, knowledge and
performance affect not only superiors but also subordinates and the
employees of the same level. Hence the organization started involving the
subordinates and the employees of the same level in administrating the
employment tests and interviews. This type of selection program is called
360 degree program.
Employee leasing: The client company leases employees from a third
party, not on temporary basis but on a full time basis and for long help. An
interesting feature is that the client company need not perform personnel
activities such as hiring compensation or record keeping. Employees
working elsewhere are leased. They are not directly employed by the
company where they are working. Employees not recruited by one client
are sent to another.
Selection by invitation: Management observes the performance of the key
executives of competitors. If the performance of the key executives is
excellent or the key executives are the change agents, the management
invites them to join the organization by offering attractive salary and
benefits. Thus, the significant performance of the executives forms basis
for selecting them by invitation.
55
FUTURE OF HRM
56
STATE BANK OF INDIA
I have interviewed Mrs. Rohini Rai, Branch Manager of SBI The theme of
the interview was on how HRM has reacted to the various drivers of modern
banking & how to enhance performance in the fast changing banking sector. The
results of the interview threw up some interesting facets to the HR issues
confronting the banks today & how the HR departments are coping with it.
1) HRM CHALLENGES
1) The biggest HRM challenge is sustaining & increasing the profits of the
bank.
2) Following that is improvement in the operational effectiveness of the HR
department.
3) The least priority on the challenge list is given to new distribution
channels & on introducing new products & services.
2) THE ROLE OF HRM IN BANKS TODAY
When asked about the role of HRM in banking, M rs. Rohini Rai
was of the opinion that HRM drives business transformation initiatives. It is
therefore not completely incorrect to conclude that HRM participates in the
decision & allocation process after the major issues are decided.
Mrs. Rohini Rai however emphasized saying that In the post
business decisions, HRM participation in the business implementation &
resource allocation is solicited. It is necessary that the banks take up human
resources accounting & involve HRM departments fully in the business process
changes so that the full potential of change in business processes may be
realized.
3) EFFECTIVENESS OF HRD
57
Posting right person for the right job, retaining talents,
planning for the long term needs of the bank, dovetailing employee
preferences in the deployment process, & capacity to make staff changes
that drive business changes are the corner stones of HR strategy.
4) COPING WITH THE EMPLOYEE TURNOVER
If a bank does not have the staff with the required skills at the
required place it would resort to recruiting. This coupled with
It was earlier seen that the major task before the HRD is to instill new
skills with the staff. In this connection it can be pointed out that all the
banks own a large training network. They also have access to other
training establishments & seminars.
7) SOURCES OF RECRUITMENT The various sources of
recruitment may be broadly classified into two
categories, i.e., internal & external sources.
58
Literature review
1)
Description:
2)
Publisher: Bookboon
Description:
59
3) Name of the Book: Maximizing People Potential
Publisher: Bookboon
Publisher: Bookboon
Description: In this book, the author, David Wright, sets out to share 30
years of his team building experience in organizations both large and small. The
book focuses on the key milestones that mark a team's journey to high
performance, without being naive to the challenges and the pitfalls.
Publisher: Bookboon
60
Description: This book provides an introduction to the theory and practice
of managing diversity (and Equal Employment Opportunities or EEO). The book
covers topics such as: the role of historical struggles in the development of
managing diversity practice today, demographic and social change; theoretical
debates; discussion of each of the main groups that managing diversity programs
often focus on like gender, ethnicity and religion, people with disabilities, and
mature workers; and practical tools for implementing valuing diversity initiatives.
Publisher: Bookboon
CONCLUSION
The banking sector has grown from a few institutions primarily involved
in deposit acceptance and trade finance into a complex multi player where large
61
number of commercial banks, financial institutions and specialized banks are
operating with various products and activities. 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.
Thus, event the high automation would require proper man behind the
machine to make things happen. This idea has been realized by top managements
in progressive banks.
Bibliography
62
2. Working with Humans , Piers Bishop ,Bookboon,2014
Appendix
http://www.journals.elsevier.com/human-resource-management-
review/recent-articles
63
1) Performance management and employee engagement
Many contemporary organizations are placing a greater
emphasis on their performance management systems as a means of
generating higher levels of job performance.
We suggest that producing performance increments may be best achieved
by orienting the performance management system to promote employee
engagement. To this end, we describe a new approach to the performance
management process that includes employee engagement and the key
drivers of employee engagement at each stage.
We present a model of engagement management that incorporates the
main ideas of the paper and suggests a new perspective for thinking about
how to foster and manage employee engagement to achieve high levels of
job performance.
-Jamie A. Gruman | Alan M. Saks June 2016
64
Scholars associating CSR and HRM rarely explicate their understanding
of the connection between CSR and HRM (CSRHRM) or the
assumptions they make when exploring this relationship. Thus, we argue
that a comprehensive review of the literature of the CSRHRM nexus is
relevant and necessary. Such a review would allow scholars to reach more
explicit and comprehensive understandings of CSRHRM, and enhance
research both theoretically and empirically
Christian Voegtlin | Michelle Greenwood September 2016
65
strategy, its human resources, and performance outcomes. First, we review the
relevant literature focusing in particular on the role of human resources in
creating competitive advantage. We then present a multi-level model
illustrating how human resource management practices can effectively align
organizational, group and individual factors with the organization's strategy.
We redefine line of sight as the alignment of organizational capabilities and
culture, group competencies and norms, and individual KSAs, motivation and
opportunity with one another and with the organization's strategy. Further, we
propose that such alignment contributes to the creation of human capital and
social capital, both of which are necessary to achieve and sustain superior
performance. We conclude the paper with some implications for future
research and practice.
Paul F. Buller | Glenn M. McEvoy sept 2016
66