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HUMAN RESOURCE MANAGEMENT

EXECUTIVE SUMMARY
Fast global & technological developments have made todays business environment highly uncertain & even chaotic. Organizations are seeking newer ways to promote their adaptability to the complexities of the changed scenario so as to survive & prosper. Globally organizations are striving to realize competitive success through strategic management of human resources. Thus, people management has never been more important than it is today. The new thinking in this regard is referred to as Human Resource Management (HRM), which carries a more proactive & strategic connotation. The development of employee commitment through employee involvement & empowerment is one of the key objectives of any HRM discourse. The complex business objectives in todays business environment are difficult to realize without developing highly committed & motivated employees who would strive to contribute to organizational goals. That is why, human resource issues are no more the preserves of personnel specialists; rather line & general managers are being increasingly involved in handling key HR issues & in evolving, shaping & managing human resource strategies & policies. These developments have given a far greater recognition to the HR function in organizational decision- making processes. Human resource is one of the natural resources of any countrys economy. It is the wealth of the country. In the context of banking, human resource is of greater importance. The deployment of human resource through proper & efficient selection, training & development, is called Human Resource Management.
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The success of any bank largely depends on efficient human resource management, apart from operations, marketing & sales, the HR department manages all the efficient people working in operations & marketing divisions in an organization. HYPOTHESIS GROWTH OF BANKING SECTOR DEPENDS ON APPROPRIATE HRM POLICIES. To analyze this hypothesis I have included a case study on STATE BANK OF INDIA in which I have put forth the range of practices executed by the HR department. I have even interviewed Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager of HDFC Bank, thereby representing the two major sectors of BANKS, i.e., PUBLIC SECTOR & PRIVATE SECTOR.

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INTRODUCTION
The concept of human resource management is increasingly becoming a most vital function of a modern manager. Human resource management is the management of employees knowledge, abilities, talents, aptitudes, creative abilities, etc. 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. The key element in this proposition is that the values, attitudes, general orientation and quality of people of a country that determines its economic development. People are our most valuable asset is a clich which is no member of any management team would disagree with. The concept of HRM assumes immense importance as HRM plays vital role in meeting the challenging requirements of highly skilled & component human resources due to globalization.

DEFINITION
Human resource management is planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintenance & separation of human resources to the end that individual, organizational and social objectives are accomplished.

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MEANING
Human resources management involves all management decisions & practices that directly affect or influence people or human resources, who work for the organization. In recent years, increased attention has been devoted to how organizations manage human resources. This increased attention comes from the realization that an organizations employees enable an organization to achieve its goals, & the management of these human resources is critical to the success of the organization. HRM is management function that helps managers to recruit, select, train & develop members for an organization. Obviously HRM is concerned with the peoples dimensions in organizations. HRM refers to set of programs, functions & activities designed & carried out. Human resource management means employing people, developing their resources, utilizing, maintaining & compensating their services in consonance with the job & organizational requirements.

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CORE ELEMENTS OF HRM

People: Organizations mean people. It is the people who staff & manage organizations. Management: HRM involves application of management functions & principles for acquisitioning, developing, maintaining & remunerating employees in organizations. Integration & Consistency: Decisions regarding people must be integrated & consistent. Influence: Decisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable costs. Applicability: HRM principles are applicable to business as well as non-business organizations too, such as education, health recreation & the like.

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SCOPE
From entry to the exit of an employee in the organization; Scope of HRM can be described based on the following activities of HRM. Based on these activities we can summarize the scope of HRM into 7 different categories as mentioned below after the activities. Lets have a look at both of them HRM Activities:1. HR Planning 2. Job Analysis 3. Job Design 4. Recruitment & Selection 5. Orientation & Placement 6. Training & Development 7. Performance Appraisals 8. Job Evaluation 9. Employee & Executive Remuneration 10.Motivation 11.Communication 12.Welfare 13.Safety & Health 14.Industrial Relations

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7 Categories of Scope of HRM: 1. Introduction to HRM 2. Employee Hiring 3. Employee & Executive remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM SCOPE OF HRM

NATURE OF HRM PROSPECTS OF HRM EMPLOYEE HIRING

INDUSTRIAL RELATIONS

HUMAN RESOURCE MANAGEMENT

EMPLOYEE & EXECUTIVE REMUNERATION

EMPLOYEE MAINTENANCE

EMPLOYEE MOTIVATION

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

There are 2 broad functions of HRM. They are: I. II. Managerial Functions Operational Functions

Managerial Functions: Managerial functions of Personnel management include planning,

organizing, directing, co-ordinating & controlling. Planning: It is the charting out of programmes & changes in advance in the achievement of organizational goals. Hence, it involves planning of human resources requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes & behavior of their employees & their impact on the organization. Organizing: In the words of J. C. Massie, an organization is a structure & process by which co-operative groups of human beings allocated its tasks among its members, identifies relationships & integrates its activities towards a common objective. Given the complex relationships that exist between specialized departments & the general departments, many top managers seek the advice of personnel manager. In this manner, the organization establishes relationships among the employees so that they can together contribute to the achievement of organizational goals.
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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: It is the task of matrixing various employees efforts to ensure successful goal achievement. The Personnel manager co-ordinates various managers at different levels as far as the personnel functions are concerned. Controlling: 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, analyzing labour turnover, overseeing morale surveys, conducting exit interviews are some of the controlling functions of personnel management.

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Operative Functions: The operative functions of HRM relate to employment, development, compensation & relations. All these are interacted by managerial functions. Also, they are to be performed in conjunction with management functions.

EMPLOYMENT

Human Resource Planning Recruitment Selection Induction Placement

Performance Appraisal Training Management Development Career Planning & Development Organisation Change Organisation Development

HUMAN RESOURCE DEVELOPMENT

COMPENSATION MANAGEMENT

Job Evaluation Wage & Salary Administration Fringe Benefits

HUMAN RELATIONS

Motivation Morale Job Satisfaction Communication Grievance & Disciplinary Procedures Quality of Work Life & Quality Circles

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ORGANISATIONAL DESIGN----JOB DESIGN----JOB ANALYSIS

Employment: Employment function is securing & employing the people having required level of human resources essential for achieving the organizational objectives. It involves job analysis, human resources planning, recruitment, selection, placement, induction & handling internal mobility. Job Analysis: It is the study & collection of data relating to the operations & responsibilities of a specific job. It includes: a. Collection of data & information & facts relating to the various aspects of jobs including men, machines & materials. b. Drawing up of job description, job specification, job requirements & employee specification with which nature, level & quantum human resources can be finalized. c. Providing the guidelines, plans & the basis for job design & for all operative functions of HRM.

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Human Resource Planning: 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. The process involves: a. Estimating the present & future requirements of human resources based on objectives & long range plans of the organization. b. Calculation of net human resource requirements based on the present availability of human resources. c. Taking suitable steps to identify, mould, change & develop the strength of existing employees so as to meet the future requirements. d. Preparation of action plans to acquire the balance human resources from outside the organization & to develop the existing employees. Recruitment: It is the process of searching for future employees (requirement) & ensuring they apply for jobs in the organization. It involves: a. Identification of existing sources of candidates & developing them. b. Seeking out & identifying new sources of applicants. c. Motivating the right type of candidates to apply for jobs in the organization. d. Ensuring a healthy balance between internal & external sources.
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Selection:

It is the process of ascertaining the qualifications, experience, skill, knowledge, etc. of an applicant to ascertain his/her suitability for the job applied. This includes: a. Developing application blanks. b. Creating & developing valid & reliable testing techniques. c. Formulating interviewing techniques. d. Checking of references. e. Setting up for medical examination policy & procedure. f. Line Managers to be involved in the decision making. g. Sending letters of appointment. h. Employing the selected candidates, when he reports for duty. Placement:

It is a process of allotting to the selected candidate the most suitable job, as per the job requirements & employee specifications. This function includes: a. Counselling placements. b. Overseeing the follow-up studies, employee performance appraisal to monitor employee adjustment to the job, in the coming days. c. Correcting wrong/misjudged placements, if any.
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the

concerned

managers

regarding

the

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Induction & Orientation: These are procedures by which a new employee is rehabilitated in the new surroundings & introduced to the practices, procedures, policies, people, etc. of the organization. It includes: a. Familiarizing the employee with company philosophy, objectives, policies, career planning & development, company product, market share, history, culture, etc. b. Introduce new employee to the peoplehis colleagues, supervisors & subordinates. c. Mould the employees by orientation methods to the new working conditions. Human Resource Development: This process involves improving, moulding, & developing the skills, knowledge, creativity, attitude, aptitude, values, commitment, etc. based on the present & future job & company requirements. Performance Appraisal: It is the continuous & systematic evaluation of individual employees with respect to their performance & their potential for future development. It includes: a. Enunciating policies, procedures & techniques. b. Assisting functional managers. c. Reviewing & summarizing reports. d. Evaluating the effectiveness of various programmes.
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Training:

It is the process of transmitting the employees the technical & operating skills & knowledge. It includes: a. Identification of training needs of the individuals & for the organisation. b. Developing appropriate training programmes. c. Assissting & advising the management in the conduct oftraining programmes. d. Transmitting requisite job skills & job knowledge to the employees. e. Asses the effectiveness of the training programmes. Organisational Development: The planned process drawn up to improve organisational effectiveness through changes in individual & group behaviour, culture & systems of the organisationdrawing models from applied behavioural science.

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Management Development:

It is the process of designing & conducting appropriate executive development programmes so as to develop the managerial & human relations skills of the employees. It includes: a. Identification of the areas in which management

development is needed. b. Conducting development programmes. c. Motivating executives/managers. d. Designing special development programmes/ assessment procedures for promotions. e. Utilising the services of specialistsboth internal & external for development &/or Institutional (external) development programmes. f. Evaluating the effectiveness of executive development programmes.

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Career Planning & Development: It is the planning of ones career & implementation of career palns by means of education, training, job search & acquiring of work experience. It includes: a. Internal mobilityvertical & horizontal transfers, promotions & demotion. b. Transferprocess of placing employees in the same level jobs where they can be utilised more effectively as per the needs of the organisation. This also meansdeveloping transfer policies, offering assistance & guidance to employees under transfer orders & evaluating transfer policy periodically. c. Promotionit deals with the upward assignment of employees to occupy higher positions (with better status & pay) in consonance with resoueces of employees & job requirement. The department must ensure that: i. Equitable, fair & consistent promotions are formulated & administered. ii. Managers & employees are given assistance & guidance on the subject of promotion. iii. Execution of promotional policies are as per policies & procedures. d. Demotionis the downward assignment of an employee in an organisation. The department must ensure that: i. Equitable, fair & consistent demotion policies are drawn up. ii. Assisting & advising employees regarding demotions. iii. Ensure fair implementation of demotion policies & procedures.
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Human Relations: Administering various human resources policies like employment development & compensation & interactions among the employees on one hand & employees & the management on the other, create a sense of working relationships between workers & management & trade unions. Basically they are all interactions between human beings. Human relations, is therefore, is an important area in management which integrates people into worksituations in a way that motivates people to work together with economic, psychological & social satisfaction thereby increasingtheir productivity. Hence Human Resources Management functions will centre around: a. Understanding perception, personality, learning, intra & inter personal relations, inter & intra group relations. b. Motivating all employees. c. Promoting employee morale. d. Developing communication skills. e. Developing leadership skills. f. Redressing satisfactorily through a well defined grievance procedure. g. Handling disciplinary cases by established disciplinary procedures & in all fairness. h. Providing adequate counselling to solve employees personal, work & family problems, thereby releasing their stress & strain.

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FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives
Social Objectives Organisational Objectives

Supporting HRM Functions

Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment

Functional Objectives

Performance Appraisals Placement & Orientation Employee Assessment

Personal Objectives

Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment

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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. 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. Objectives of Personnel Management are determined by organisational objectives & individual & social goals. The main objectives of Human Resource Management are drawn from the organisational objectives. The other objectives of HRM are to take care of the needs, aspirations, dignity of the individual employees & at the same time keeping in mind the socioeconomic problems of the community & the country.

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The objectives of HRM are as follows: 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. 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.

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HUMAN RESOURCE MANAGEMENT IN BANKS

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. HRM in Cooperative Banks It is sad that the HR policies of cooperative banks are totally dominated by the Registrar of Cooperatives. This is, perhaps, one reason why the cooperatives are unable to improve themselves. HRM in Regional Rural Banks (RRBs) As regards RRBs, most of them adopt the HR policies of sponsor banks, which are not appropriate for their special nature. HRM in Public Sector Banks 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.

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HRM in Private Banks & Foreign Banks The HR function as practiced by private & foreign banks is effectively involved in the identification of specific skills that each job warrants & recruiting suitable staff by every way possible. In these banks, recruitment is a continuous process with a strong focus on getting the right person for the right job by offering appropriate compensation, incentives & designations. There is a great energy spent in keeping the turnover low & offering appropriate training inputs. Possibly there are as many pay structures as there are employees. More importantly, HRM has a role in monitoring & mentoring the employee. There are no routine transfers. Rather people are recruited in different geographical locations & different levels. Technology has helped in centralizing the back office & other functions such that service can be provided from a distance. HRM in Public Sector Unit Banks (PSU Banks) 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.

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Responsibilities Of The Human Resource Management Department In Banks:

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: To be the principal sponsor & guardian of HR policies in the Bank. To propose & obtain agreement on changes to these policies from time to time & to ensure that policies which have been agreed are being implemented throughout the Bank. To contribute fully to the task of meeting the business challenges whichthe bank has to face by supporting Branch/Unit Managers in continuously developingthe potential of employees. 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.

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EMPLOYEE RELATIONS IN BANKS

The banking sector has been characterized by apparently harmonious industrial relations & has not suffered from the British Diseases of industrial action & demarcation issues associated with parts of manufacturing industry (e.g. Batstone, 1984). Banks have promoted unitarism (Fox, 1966) encouraging an ethos of teamwork, shared interest & loyalty, wanting commitment beyond the cash nexus. While banks are generally seen as having a passive approach to employee relations, paternalism did underpin the system & particularly important was the system of internal promotion supported by an unwritten agreement between the major UK Banks on no poaching. The internal labour market created two categories of employees: career & non-career which equated to a male/female divide. Retail banking is a highly labour intensive industry with labour costs forming 70% of total operating expenditure & involvement in fund transmissions meant that a majority of clerical staff have not been used as a means of marketing 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.

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CURRENT CHALLENGES FACED BY BANKS IN HRM

Effective work force: A time-consuming & hectic job is to hunt the right talent. Higher the professional value of the vacancy, tougher is the search. Identifying the right stuff followed by negotiation is the element which makes the job tough for the employer. 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. Compensation: How much to pay the right employee & how much to the outstanding performer. Banks have traditionally followed pay scales with predetermined increments, salary slabs, bonuses & time based fringe benefits like car & house advance, gratuity, pensions, etc. Job Satisfaction: 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. Morale Boosting: What has long been overlooked is the morale boosting of the employees by the organizations. Human beings even if satisfied of material wellbeing need to be appraised & encouraged constantly.
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TRAINING & DEVELOPMENT

Meaning & Definition: Training: Organization & individual should develop & progress simultaneously for their survival & attainment of mutual goals. So every modern management has to develop the organization through human resource development. Employee training is the important sub-system of human resource management. Employee training is a specialized function & is one of the fundamental operative functions for human resources management. After an employee is selected, placed & introduced he or she must be provided with training facilities. Training is the act of increasing the knowledge & skill of an employee for ding a particular job. Dale S. Beach defines the training as the organized procedure by which people learn knowledge & skill for a definite purpose. 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 endusers viz. the internal & external customers.

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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
Application oriented Job experience Specific tasks Narrow perspective

EDUCATION
Theoretical oriented Classroom learning General concepts Broad perspective

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Development: Give a man a fish, & you give him meal. Teach man to fish, & you give him a livelihood. This ancient Chinese proverb seems to describe the underlying rational of all raining & development programs. No banking organization can long ignore the training & development needs of its employees without seriously inhabiting the performance. Even the most careful selection does not eliminate the needs for training, since people are not molded to specifications & rarely meet the demands of their jobs adequately. 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 dependant on training.

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Generally people think that training & development are one & the same, but there are many differences between them. They are as follows:

TRAINING Duration: Training courses are designed mostly for short term. Managerial/Operative Personnel: Training is normally directed at operative employees & related to technical aspects.

DEVELOPMENT It involves a broader long term education for a long term. It is directed at managerial personnel to acquire conceptual & theoretical knowledge.

Specific/General: Training is more specific job It is more general in nature, related information. especially top management level. Method: More emphasis on the on the More emphasis on the off the job method. job method. Cost Involved: Imparting training is less Development is more expensive. expensive. Who Imparts: Mostly the supervisors impart It is undertaken by supervisors, training. outside experts & self. Frequency: Less frequent. Mostly at More frequent & continuous in induction & at every change in nature. job. Theoretical/Practical Aspects: Emphasis is placed on practical Emphasis is placed on or technical aspects of work. theoretical & conceptual aspects.

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THE TRAINING PROCESS

Organizational Objectives & Strategies

Assessment of Training Needs Establishment of Training Goals Devising Training Programme

Implementation of Training Programme Evaluation of Results

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METHODS & TECHNIQUES OF TRAINING

ON-THE-JOB METHOD

OFF-THE-JOB METHOD

JOB ROTATION COACHING JOB INSRTUCTIONS COMMITTEE

VESTIBULE TRAINING ROLE PLAYING LECTURE METHOD CONFERENCE OR DISCUSSION PROGRAMMED

On-the-Job Training Method (OJT): Majority of industrial training is on the job training type. OJT method is mainly adopted while orienting new employees, introducing innovations in products and services and in special skills training. OJT is conducted at the work site and in the context of the job. Often, it is informal, as when an experienced worker shows a trainee how to perform the job tasks. It includes job rotation, job coaching, job instruction or training through step-by-step and committee assignments. Off-the-Job Training Method: Under this method of training, trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance. Since the trainee is not distracted by the job requirements, he can place his entire concentration on learning the job rather than spending his time in performing it. There is an opportunity for freedom of expression for trainees.

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DEVELOPMENT IN BANKS
The banks must emphasis on human resource development as one of the critical areas of its operations. It should redraw its training & development schedules to suit the requirements of the current emerging scenario. Requisite training should be imparted to various branch level functionaries as also administrative staff. Besides in-house training the reputed external agencies should be utilized for human resource development with a view to updating their knowledge & to keep them abreast of the current banking scenario for meeting the challenges ahead. The concept of segment specialization may be resorted to in respect of the personnel selected therefore. It is now thought expedient to plan & strengthen the squad of skilled officers in various segments as IT, marketing management, risk management, risk based supervisors, law, security, etc. The lead bank must play an effective role in improving the work environment & pursuing staff welfare measures in the form of whole range of financial assistance with reference to various loans of sorts. Human resource skills are other areas of challenge. Because of modernization & technological advancement rigorous training & man power planning are required. In the market scenario characterized by heightened competition, growing customer needs & technological up gradation, the bank fine tunes its HT policy to meet its corporate objectives. New training systems have been developed to impart competencies & a broad range of skills among the employees to deliver faster & superior service that can delight the customers. The Industrial Relations in the banks have been harmonious & cordial.
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RECRUITMENT
Meaning and definition: After determining the types & no. of employee needed the next operative function is the procurement of employees. Procurement involves recruitment, selection & placement of employees. Recruitment is finding out potential applicants for actual & anticipated organizational vacancies. In recruitment the organization gives the details of job available & interested candidates are encourages to submit applications. Therefore, recruitment is the positive process. The human resources are the most important assets of an organization. The success or failure of an organization is largely dependent on the caliber of the people working therein. Without positive and creative contributions from people, organizations cannot progress and prosper. In order to achieve the goals or the activities of an organization, therefore, they need to recruit people with requisite skills, qualifications and experience. While doing so, they have to keep the present as well as future requirements of the organization in mind. Once the required number and kind of human resources are determined, the management has to find places where the required human resources are/will be available and also find means of attracting them towards the organization before selecting suitable candidates for jobs.

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Definition :According to the Edwin flippo: Recruitment is the process of searching for a prospective employees & stimulating them to apply for jobs in the organization. Recruitment is defined as, A process to discover the sources of man power to meet the requirements of the staffing schedule and to employ effective measures for attracting that man power in adequate numbers to facilitate effective selection of an efficient work force.

Objectives of recruitment Some of the objectives of recruitment are: To attract people with multi-dimensional skills and experiences that suits the present and future organizational strategies To induct outsiders with a new perspective to lead the company To infuse fresh blood at all levels of the organization To devise methodologies for assessing psychological traits

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Factors affecting recruitment:

RECRUITMENT PROCESS
Personnel Planning Job Analysis Employee Requisition

Job Vacancies

Recruitment Planning Number Type

Searching Activation Selling Message Media

To Selection Screening Application Potential Pool Hirers

Strategy Development Where How When

Application Population

Evaluation & Control

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Process of Recruitment: 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.

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SELECTION
Definition Selection is defined as the process of differentiating applicants in order to identify and hire those with a greater likelihood of success in a job. The objective of selection decision is basically picking an applicant from a pool of applicants who has the appropriate qualifications and competency to do the job Selection is the process of selecting the best & rejecting the rest. The selection procedure cannot be effective until and unless Requirements of the job to be filled have been clearly specified. Employee specifications (physical, etc) have been clearly specified. Candidates for screening have been attracted. Selection process is preferable because: It is easier for applicant as they can send their applications to a single centralized department/agency. It facilitates contacts with applicants because issues pertaining to employment can be cleared through one central location. It helps operating managers to concentrate on their operating responsibilities. This is helpful during peak operating period. It can provide for better selection because hiring is done by specialist trained in staffing techniques. The applicant is better assured of consideration for a greater variety of jobs. Hiring cost may be cut because duplication of efforts is minimized.
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Selection Process: The selection process consists of the following steps: 1. Application form: Many companies formulate their own style of application form depending upon the size and nature of business carried on, type and level of the job etc. Information is generally required on the following items in the form: personal background, educational attainments, work experience references etc. 2. Written test: Written test is conducted for the qualified candidates after they are screened on the basis of application form to measure the candidates ability towards the job, his aptitude reasoning, knowledge in various disciplines, English language etc. 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

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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 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.

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7. Physical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. The result of the medical fitness test is recorded in a statement and is preserved in the personal records. The main objectives of this test are as follows: To detect if the individual carries any infectious diseases. To determine whether an applicant is physically fit to perform the work. It helps to determine if there are any physical capabilities which differentiate successful and less successful employees. Medical check up protects applicants with health defects from undertaking work that could be detrimental to them or might otherwise endanger the employers property. Last, but not the least such examination will protect the employer from workers compensation claims that are not valid because the injuries or illness was present when the employee was hired. 8. Job offer: The next step is selection process is Job offer for those applicants who had passed the previous stage. Job offer is made through a letter of appointment. Such a letter usually contains the date by which the appointee must report on duty. Appointee must be given a reasonable time for reporting because it may be quite possible that the appointee is employed in some other company or 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.

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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.
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New methods of selection: 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.

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FUTURE OF HRM
If HRM is not to remain more in the realm of rhetoric with wide disparities between theory and practice, several things need to take place. First, HRM needs to be diffused across industries and the economy. For this to occur the following conditions need to be satisfied: HRM should be an essential part of management education and training. From this, two important consequences are likely to follow. HRM is likely to be integrated into corporate strategies and line managers functions and decisions. This would reduce the need for HRM specialists, except at the policy level where they will have a greater voice. Business strategies are then likely to be built less around low cost and low wages, but around the real sources of competitive advantage such as flexibility, quality and customer service. Employment policies which support employment security, without which HRM policies, including training, would have little motivational effect. This does not mean guaranteed employment, but a policy which treats termination as a last, rather than a first, resort. Learning from international experiences and diffusing the information can have a transforming effect, as was the case when American manufacturing was transformed through in-depth studies of Japanese manufacturing in the automobile industry. Substantial investment in people and the willingness of employers to view the benefits from a long-term perspective - a difficult task in a system which is driven by short-term investor pressure.
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Frequently Asked Questions: E-Recruiting 1. General Questions. 1.1. What is E-Recruiting? 1.2. What can candidates use the E-Recruiting tool for? a. Searching for job postings b. Applying for advertised job postings c. Registering in the Applicant pool d. Supported Browser 1.3. Is my data safe? 2. Application Process: Access the system 2.1. I am an applicant. How do I access E-Recruiting? 2.2. My e-mail address is already registered, how can I log on to the system? 2.3. I forgot my password and my user name, what can I do? 3. Application Process: Entering data, uploading documents, editing entries 3.1. Why do I have to give details like resume, cover letter, qualifications, and so on twice -once in the category and once upload them under attachments? 3.2. How can I edit the entries in my profile? 3.3. Can I enter my data in more than one language? 3.4. Do I really have to make entries in every section of My Profile? 3.5. What is the Fast track option?

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3.6. I was asked to attach additional documents to my application. Can the HR department see all my documents straight away or do I have to reapply? 3.7. I have uploaded all my application documents. If I am applying for more than one job, can I Select which documents I attach to each separate application? 3.8. How can I change my cover letter after I have submitted my application? 4. Application Process: What happens next? 4.1. What does the Candidate status tell me? 4.2. Who can access my application and uploaded documents? .................................................... 5 4.3. How long is my data stored in ERecruiting?.............................................................................. 5 4.4. How long do I have to wait for initial feedback on my application? ......................................... 5 Frequently Asked Questions E-Recruiting, 2/7 5. Job opportunities, searching for job postings...................................................... 5 5.1. What kind of job postings can I find in ERecruiting?................................................................ 5 5.2. How can I search for suitable jobs in E-Recruiting? .................................................................. 6 5.3. Why dont I get results when I enter the German search term "Chemiker"?........................... 6 5.4. How can I apply for jobs at LONZA international subsidiaries? ............................................... 6
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5.5. Are the job postings I am interested in up-todate?................................................................... 6 5.6. After I applied for a job, I noticed that the reference code had changed. Do I have to reapply or will my application remain assigned to the right job posting?.......................................................... 6 6. Application ............................................................................................................... 6 6.1. How do I apply for a job in E-Recruiting? .................................................................................... 6 6.2. How can I apply for various jobs at the same time?................................................................... 7 6.3. What happens when I apply for a job?......................................................................................... 7 6.4. How can I withdraw my application?......................................................................................... ... 7 6.5. I applied for a job. Will my application be automatically checked for a match with all other job postings? ............................................................................................................... ............................... 7 6.6. Can I apply via e-mail or paper applications? ............................................................................. 7 Frequently Asked Questions E-Recruiting, 3/7 1. General Questions
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1.1. What is E-Recruiting? E-Recruiting is a global Lonza online recruiting tool which facilitates the relationships between Lonza and its candidates. At the beginning only Jobs from Switzerland will be online followed by all subsidiaries by summer 2008. Please find the current status on the internet. 1.2. What can candidates use the E-Recruiting tool for? a. Searching for job postings Candidates can search for job postings published by LONZA Recruiters (HR Managers). b. Applying for advertised job postings Candidates can apply online for advertised posts. c. Registering in the Applicant pool Candidates can register in the Applicant pool and upload all their application documents so that they can be informed about suitable jobs when they arise. If a recruiter identifies a match between an applicants profile and a job profile, he or she will request the applicant to apply specifically for the job concerned. d. Supported Browser For optimum functionality please use the browser Internet Explorer from Microsoft. 1.3. Is my data safe?
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The E-Recruiting tool complies with all the stipulations of the Swiss Data Protection Act and of LONZAs own data protection officer. 2. Application Process: Access the system 2.1. I am an applicant. How do I access E-Recruiting? You can access E-Recruiting via www.lonza.com / Careers @ Lonza / Jobs Schweiz. Search for one or more job postings and click on Apply. 2.2. My e-mail address is already registered, how can I log on to the system? Access the web page www.Lonza.com / Careers @ Lonza / Jobs Schweiz and choose "login". Proceed to the link "password forgotten" and enter your e-mail address. After pressing the button "submit" you will immediately receive a systemgenerated e-mail with new access data (user name and password). Frequently Asked Questions E-Recruiting, 4/7 2.3. I forgot my password and my user name, what can I do? Click the link: "Password forgotten". If you have forgotten your password, you can have a new password sent to the e-mail address stored in your profile. To receive your new password, enter your e-mail address and submit the password request. 3. Application Process: Entering data, uploading documents, editing
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entries 3.1. Why do I have to give details like resume, cover letter, qualifications, and so on twice -once in the category and once upload them under attachments? Entering details in the different categories gives a standard overview for easy comparison of candidates. Uploading documents makes it possible to assess candidates more individually. 3.2. How can I edit the entries in my profile? You can change your entries at any time using the Edit button. There is also a Delete button for removing entries. 3.3. Can I enter my data in more than one language? Your application should be in the same language as the job posting you are responding to (usually English, German or French). If you decide to register in our Applicant pool, enter your data in your favourite language. 3.4. Do I really have to make entries in every section of My Profile? It makes sense to provide as much information about yourself and your skills and experience as possible. However, if you use the Fast track option, you only need to

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enter information in certain mandatory fields (marked by asterisks). Your application still needs to contain all the regular application documents, though, such as a cover letter and your resume. 3.5. What is the Fast track option? If you choose to use the Fast track option, you only need to enter application data in certain mandatory fields (marked with red asterisks). However, you still need to submit a complete set of application documents, including a cover letter and resume. 3.6. I was asked to attach additional documents to my application. Can the HR department see all my documents straight away or do I have to reapply? The HR department can see the newly attached documents. You therefore do not have to reapply. Frequently Asked Questions E-Recruiting, 5/7 3.7. I have uploaded all my application documents. If I am applying for more than one job, can I select which documents I attach to each separate application? As soon as you release your profile, all the documents you have attached to it are
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visible in every application you submit. However, you have the option in the application wizard of writing a new cover letter for each application in the Cover letter category. 3.8. How can I change my cover letter after I have submitted my application? In this case, you need to withdraw your application, rewrite the cover letter, and then reapply for the job. 4. Application Process: What happens next? 4.1. What does the Candidate status tell me? It provides information about the current status of your application, such as whether it is being processed, whether it has been rejected, or whether you are to receive an invitation to interview. 4.2. Who can access my application and uploaded documents? Nobody except you, not even HR staff, can see your data until you have given your consent and released your profile. Please read the corresponding data privacy statement carefully and then click the button to agree to and accept it. You can lock your profile at any time to prevent further access to your data. 4.3. How long is my data stored in E-Recruiting?

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That is your decision. You are the only person authorized to handle your data. Noone else can change or delete it. 4.4. How long do I have to wait for initial feedback on my application? If you have applied for a specific job, you should receive initial feedback within 2-3 weeks. If you have registered in our Applicant pool, you will receive feedback as soon as there is a job available that matches your profile. 5. Job opportunities, searching for job postings 5.1. What kind of job postings can I find in E-Recruiting? E-Recruiting contains all job postings advertised for internal and external applicants. However, at the moment you will only find job postings from LONZA subsidiaries that are already operating the E-Recruiting tool (see above). Frequently Asked Questions E-Recruiting, 6/7 5.2. How can I search for suitable jobs in E-Recruiting? You can use the Apply Directly function, if you have already found the job you were looking for. The second option is by entering the reference code for the job you found in a magazine/news paper, and then please use the Quick search option. By selecting Search for Jobs, you can browse for job opportunities using various
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search criteria, such as function area, country, and contract type. You can also save your search results in this section. Selecting Favorites allows you to display the results of previous searches and apply directly for one of the jobs listed. Under Applications, you can call up an overview of the applications you have released and also withdraw individual applications. Withdrawn applications are no longer visible to anyone. 5.3. Why dont I get results when I enter the German search term "Chemiker"? Your application interface is set to English by default. You can either enter the English Term of your desired Job (in this case "Chemist") or you change the search settings to German. 5.4. How can I apply for jobs at LONZA international subsidiaries? Currently only Lonza Switzerland jobs (Basel, Visp) and Lonza UK jobs are on our ERecruitment tool. To search and apply for jobs at our other subsidiaries, go to: www.lonza.com / Working at Lonza / Careers @ Lonza. On this page you will find the list of jobs. You may select the country and job of interest.

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We will continuously add further countries to the e-recruitment tool. You will find the most current information on the front page careers@lonza. 5.5. Are the job postings I am interested in up-to-date? All job postings on www.lonza.com are updated daily. 5.6. After I applied for a job, I noticed that the reference code had changed. Do I have to reapply or will my application remain assigned to the right job posting? Even if the reference code has changed, your application will remain assigned to the correct job posting. 6. Application 6.1. How do I apply for a job in E-Recruiting? You have two possibilities. Either you can apply for a job you have saved under Favorites, or use the Apply Directly function when you found the job you had a reference code for. 6.2. How can I apply for various jobs at the same time? If you want to apply for more than one job (E-Recruiting permits you to apply for up to three different jobs), you can display a selection of job postings in the Search for Jobs section. Mark the first job posting you favour and click Apply. The application
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wizard opens and you can enter your data, upload your documents, and so on. When you click Submit on the last page, your complete application data is transferred to our database. By clicking Back, you return to the search results and can apply for the next job of your choice. 6.3. What happens when I apply for a job? First, a recruiter (HR Manager) checks your completed application. If it matches the job profile, he or she forwards your application to the responsible manager. The manager then decides whether he/she would like to see you for an interview or not. 6.4. How can I withdraw my application? When you select Applications, you get an overview of all the applications you have submitted. Mark one of the applications displayed and click Withdraw/Delete. Important When you click Withdraw/Delete, you receive the following message: You do not want to proceed with this application. Note that you may also have to delete completed questionnaires and application cover letters. If you apply again, you will

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have to enter this data again. The hiring manager and recruiter can see that the application status has changed, but they can no longer see your completed application and documents. 6.5. I applied for a job. Will my application be automatically checked for a match with all other job postings? You need to apply separately for every job youre interested in, that means assign your application in your profile to further job postings. We will though look in the applicant pool for candidates and if you match the profile we will contact you. 6.6. Can I apply via e-mail or paper applications? E-mail and paper applications are by default, no longer accepted

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THE INTERVIEW
I have interviewed Mr. Rajiv Deka, Branch Manager of SBI & Ms. Rohini Rai, Branch Manager of HDFC Bank, thereby representing the 2 major sectors of banking, i.e., Public Sector & Private Sector. 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. Hereby showing the main highlights of the interview. 1. HRM CHALLENGES

HRM CHALLENGES
6% 4% 4% 15%

26%

21%

13%

11%

Getting into new Markets/Areas Improving product & service quality Sustaining & increasing profits New distribution channels

Improving operational effectiveness Deepening gustomer base Complying with regulatory challenges New products & services

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When interviewed the two personnel, both of them were of the opinion that the list of HRM challenges in banks are as shown in the graph. The biggest HRM challenge is sustaining & increasing the profits of the bank. Following that is improvement in the operational effectiveness of the HR department. 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, Mr. Rajiv Deka 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. Ms. 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. Interestingly the response about the changes within the HR Departments with reference to a change in the business strategy revealed similar dichotomy.

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3. EFFECTIVENESS OF HRD 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. How effective are the banks in performing these tasks? The two personnel were of the opinion that: They are effective when it is a question of ability to post staff with appropriate skills & capabilities for the job/s. Also these departments have enough room/flexibility with regard to their ability to make changes in staffing pattern/position based on changes in business conditions. As regards PSU banks, the response to the effectiveness should, be read in conjunction with the issues on transfer & promotion policy. The posting of staff with appropriate skills & capabilities could be well suffixed with subject to availability of suitable skills & talents in the given location. HRM effectiveness could also be suited with reference to be its role in staffing of each department/unit. In an effective organization, the department will have a say in the matter & work hand in glove with the line departments. This seems to be in vogue in private sector & foreign banks. Invariably, in these organizations, the line departments & HRD jointly select
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candidates, while HRD is involved in the head hunting, finalizing pay & related aspects. In the case of PSBs, in the past the selection process was through advertisements for a large number of posts.

On selection, the candidates were given an induction training & job-specific training. Undoubtedly this has been a successful model as it has thrown up a large number of very efficient leaders in the sector. In the recent years, however, there are apparent changes in the way the staff are selected in PSBs. There are campus recruitments & sporadic instances of specialists being inducted at higher levels. Some of the banks have also started offering market related pay. Yet, as of now, it appears that in the case of PSBs the line departments have no right in the selection of candidates. The responses clearly show that there is a need for greater coordination between the HR & line the participant HR functionaries have indicated that job rotation is an important aspect of employee development. They have also indicated that most jobs are becoming specialist in nature. Indeed the concept of job rotation is contrary to the development of specialist skills. 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 I. The need for specialization & new skill sets for CBS &

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II.

Marketing of bank products bring us to the two issues that have gained the attention of HR departments in the recent years, namely staff deployment techniques & managing employee turnover.

Across the banking sector everyone is facing a high level of employee turnover in the recent years. If till recently it was the BPO sector, which was the biggest recruiter, it is now the turn of retail business. It is seen that bank employees are able to take up jobs in these relatively new areas. In the view of this, it is seen that the turn over level during the current year is higher than the previous years. It can be said that the current period is the most challenging times for HRD, as staff-mostly talented & experienced officers-move from public sector to private sector & within the private sector to the greener pastures. Certain specialist areas such as treasury management, risk management & customer relationship face acute shortage of experienced & talented staff. As PSBs cannot offer-barring a fraction of their business-market related salaries the turn over has been high. Another reason for loss of staff is the requirement of domain staff in the IT companies. Transfers have also been cited as one of the reasons for turnover in the public sector. The available avenues to manage this issue are outsourcing, re-skilling, hiring temporary staff; reuse of retired staff, etc. it is seen from the news reports that, in making financial inclusion happen, banks have resorted to the use of the expertise of retired staff. Some of the retired staff has also come forward to handle training assignments. The following figure shows the importance of HR in each strategy adopted by banks in the matter of staff deployment:

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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

MORE LESS NO CHANGE DONT USE

Performance Appraisal: A related issue is the performance appraisal system that currently focused more on promotions & not on linking performance to deployment of specialization. Performance appraisal is also more on traits than on any qualitative or quantitative appraisal of work. In the absence of clearly defined individual & organizational goals the appraisal has become a routine. Participants indicated the need for a change & more business oriented appraisal & felt that appraisal systems such as 360 Degree appraisals will be useful in future. The overwhelming feeling is that PA system should change & react to new needs. 5. RECRUITMENT IN BANKS

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Evidently the banks are waking up to many new issues. One such issue is the changing recruitment market. What according to the HR executives attracted candidates to the banks? What attracts candidates to your banks? Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Particulars Work & Life Balance Career Growth Opportunities Banks Track Record Compensation Being Better Than Market Good Company Values Challenging Work Environment Positive Corporate Reputation Others

The personnels felt that the recruitment policies, in future, will be woven around the above aspects (Table). It is an indication of changing times that the list includes items such as performance linked incentives, fast track promotion, foreign posting education, choice of departments, sabbatical & stock option. If turnover is high & recruitment poses challenges on account of high salary & work life balance expectations the HR function needs to adopt many different methods to educate/train the staff. Employee Development Techniques 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
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a large training network. They also have access to other training establishments & seminars. Banks also send employees to B schools for short duration courses & MDPs. The major emphasis of banks is to use their training systems & establishments to the fullest extent. Banks were also keen on encouraging their staff to take up new courses & correspondence courses. The schemes of reimbursements of expenses were rather liberal.
40 35 30 25 20 15 10 5 0

EFFECTIVE NOT EFFECTIVE NOT TESTED

As staff turnover & new positions are filled, knowledge management becomes important. The rules, procedures & customers, data that have been gathered need to be made available to the new staff such that continuity & service excellence is maintained. There is a need to curtail expenses in reinventing wheels. The HR executives felt that the HR department can also function as knowledge management centre. Banks have already begun knowledge management efforts. 6. SOURCES OF RECRUITMENT

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The various sources of recruitment may be broadly classified into two categories, i.e., internal & external sources. Some organizations draw their human resources internally, i.e., from within the organization while others draw externally, i.e., from outside the organization.

PROMOTION TRANSFER RETIREMENT

CONSULTANTS

RECALLS

INTERNAL ADS

I N T E R N A L

Sources of Managerial Recruitment

E X T E R N A L

ADVERTISEMENTS

INSTITUTES

RECOMMENDATION DEPUTATION

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 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.
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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. Like many other organized sectors, banking requires multi layer manpower for its various requirements of professionals and support staff. The range may require reasonably educated security guards on the one end and a highly educated and trained professional as head of corporate finance at the other. HRM is of great importance in banks. The training and development of employees is very much important. Recruitment and selection must also be done very efficiently. The major challenge for this industry is, attracting the right talent and retaining them. To conclude the growth of banking sector in the future depends upon appropriate HRM policies which will assist the employees in achieving their personal goals and in turn will enhance the individuals contribution to the organization. Objectives of the employees should be met if employees are to be maintained, retained and motivated.

ACKNOWLEGEMENT

I sincerely thank the University for introducing a degree course in B. Com for Banking & Insurance. This has given us an opportunity to gain knowledge on the insights of the Banking & Insurance industry. A special thanks to our esteemed coordinator Prof. A.R.Suri for guiding and motivating me during this project. I would also like to thank the librarian of Jai Hind College who helped me in finding out various books on the topics.

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This project was highly educational and a great learning experience.

BIBLIOGRAPHY

BOOKS Human Resource Management and Industrial Relations P. Subba Rao Human Resource Management K. Ashwathapa Human Resource Management P. V. Rao
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The future of Human Resource Management - K. Ashwathapa Human Resource and Personnel Management William Wrether

WEBSITES www.hrmguide.net www.humancapitalonline.com www.google.com www.hrmtoday.com www.wikipedia.com

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