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MINI Project-2 OF AMIT Singh NEW

B.tech (Dr. A.P.J. Abdul Kalam Technical University)

Studocu is not sponsored or endorsed by any college or university

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Mini Project 2 Report

On
“A ROLE OF HRM IN A GROWING ORGANIZATION
PRIVATE SECTOR BANK”

Submitted for the partial fulfillment of the Award

Of
Master of Business Administration
DEGREE
(Session: 2021- 2022)
SUBMITTED BY
AMIT SINGH
Roll No-2101430700004
UNDER THE GUIDANCE OF
Dr. PUNJIKA RATHI
Department of MBA
IMS ENGINEERING COLLEGE, GHAZIABAD

AFFILIATED TO
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY
(FORMERLY UTTAR PRADESH TECHNICAL UNIVERSITY),
Lucknow

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IMS Engineering College, Ghaziabad – Delhi

NCR
NAAC ACCREDITED INSTITUTION
(Approved by AICTE & Affiliated to Dr. A.P.J Abdul
Kalam Technical University, Lucknow)

CERTIFICATE

This is to certify that Ms./Mr. AMIT SINGH Roll No. 2101430700004 is a

bonafide student of MBA 2rd semester during session 2021-22. The Mini
Project Report “A ROLE OF HRM IN A GROWING ORGANIZATION
PRIVATE SECTOR BANK” has been prepared by him/ her in partial
fulfillment for the award of degree of Master of Business Administration of Dr.
A.P.J. Abdul Kalam Technical University, Lucknow (formerly UPTU
Lucknow).

(Faculty in charge) Head-MBA

DR. MEENU BALIYAN DR. MEENU BALIYAN

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Student Declaration & Certificate

I “AMIT SINGH” hereby declare that the work which is being presented in this report entitled
“A ROLE OF HRM IN A GROWING ORGANIZATION PRIVATE SECTOR BANK”
is an authentic record of my own work carried out under the supervision of “DR.
PUNJIKA RATHI”.

The matter embodied in this report has not been submitted by me for the award of any other degree/
Diploma/ Certificate.

Department of MBA Name of Student

Date:

This is to certify that the work which is being presented in this report entitled DIGITAL
MARKETING A ROLE OF HRM IN A GROWING ORGANIZATION
PRIVATE SECTOR BANK is an authentic record of the student carried out under my
supervision. The statements mad e by the candidate are correct to the best of my knowledge,
based on the candidate’s declaration.

Dr. Meenu Baliyan Name of Supervisor:

Head: Department of MBA Designation:
Date: Date:

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Acknowledgment

It is my pleasure to thank all who helped me directly or indirectly in preparation for this Mini
Project 2 Report.
It was very exciting for me to work on the project of DIGITAL MARKETING A ROLE OF
HRM IN A GROWING ORGANIZATION PRIVATE SECTOR BANK I
would like to thank my mentor DR. PUNJIKA RATHI Ma'am for excellent guidance,
suggestions that help in completing this project.

DATE:

PLACE: GHAZIABAD (NAME OF STUDENT

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TABLE OF CONTENTS

INTRODUCTION 1-4

HRM FUNCTIONS 5-7

CHALLENGES/PROBLEMS 8-10

INDUSTRY PROFILE 11-14

FINDINGS 15-17

DATA INTERPRETATION 18-19

ANALYSIS 19-20

CONCLUSIONS 21-22

BIBLIOGRAPHY 23-24

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INTRODUCTION

Human Resource management is the strategic approach to the effective management of the people
in a company or organization such that they help their business to gain a competitive advantage, It
is designed to maximize employee performance in service of an employer‟s strategic
objectives.

Human Resource Management is primarily concerned with the management of people within
organizations, focusing on policies and systems. HRM is also responsible for overseeing employee
benefits design, employee recruitment, training and development, performance appraisal, and
reward management, such as managing pay and benefits system. HRM also concerns with the
organizational change and industrial relations, or the balancing of organizational practices with
requirements arising from the competition.

In a broad definition, a human resource management system, or HRMS, encompasses the highest
level of human resource management activities. It ids program of multiple human resource policies
that are internally consistent in relation to a human resource objective. HRMS also refers the
integration of human resource management and information technology to automate and facilitate
human resource activities. The general notion of an HRMS helps small- business to suitable human
resource systems based field of business and business growth stage.

of HRM developed from U.S.A in the 1960s. It plays vital role in creating organization. In the recent
scenario human resources has added more values in developing country. The Human resource
management is very fast growing concept. It has marvelous relevance in the productivity industry.
Management of the people and staff practices and policies enable to carry organization successfully.
Human resource management is all about allowing staff to utilize their qualities in order to fulfill
their contribution and role of the organization motive and aim. Good human resource management
is very much crucial if organization want to entice and hold good staff. It also means that an
organization reduces risk to its staff and reputation. Human resources management can also reduce
organization cost. For example, good recruitment processes and policies mean that organization can
recruit more staff that can carry their jobs very efficiently. On the counter part, good system for
performance management mean that organization has to ensure that they are achieving best from
their staff. Human resource management included all management practices and decisions which
may stimulus the employees. The Human Resources Management (HRM) included all

Hence, every human resource management strategy must be guided by the golden rule,

“GIVE LOVE AND GET LOVE.” From this discussion, it is to be emphasized that HRM is

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1. Strategic Role of HRM:

The human resources management team suggests to the management team how to strategically
manage people as business resources. This includes recruiting and hiring employees with specific
skill sets to meet the company‟s current and future goals, coordinating employee benefits and
suggesting employee training and development strategies. In this way, HR professionals are
consultants, not workers in an isolated business function; they advise managers on many issues
related to employees and how they help the organizations achieve its goals.
2. Developing skills for the future growth of the organization:

At all levels of the organizations, managers and HR professionals work together to develop
employee‟s skills. For example, HR professionals advise managers and supervisors how to assign
employees to different roles in the organizations, thereby helping the organizations to its
environment. In a flexible organizations, employees are shifted around to different business
functions based on business priorities and employees preferences.

3. Building loyalty and Commitment for the growth of the organization:

HRM also suggests strategies for increasing employee commitment to the organizations. This
begins with using the recruiting process or matching employees with the right positions according
to their qualifications. Once hired, employees must be committed to their jobs and feel challenged
throughout the year by the manager.

3. Compensation & Workplace Redesign

The challenge of designing compensation programs to provide equitable and attractive

compensation and incentives for employees escalate in recessionary times. Maintaining the correct
balance between base and incentive pay in the form of bonus schemes may have to be revisited.
The organization must also consider the adequacy of the existing health and welfare benefit
programs as the cost of employee benefit claims may increase due to greater levels of stress and
resulting illnesses. It is not unusual for companies facing tough economic conditions to undertake
job re-design and workplace restructuring initiatives. Faced with job loss, an employee‟s primary
concern in a restructured job may only be with the compensation factors. Other aspects of the job
such as task variety, job relevance, or work-life balance may be ignored. Financial needs, however,
are not an employee‟s only source of motivation. Human resource management professionals who
focus solely on compensation and ignore other job motivation factors demonstrate a limited
understanding of or appreciation for workplace motivation factors.

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4. Doing Nothing is Not an Option

To survive, and even thrive in a period of recession, an organization has to be innovative and
flexible enough to design and implement a new business strategy. Effective human resource
management professionals must respond to this change, by adjusting the HRM structures,
practices and policies to help the company obtain competitive advantage the company.
Doing nothing is not an option.

• CHALLENGES/PROBLEMS OF THE GROWING

ORGANISATION:

Growing businesses face a range of challenges. As a business grows, different problems and
opportunities demand different solutions - what worked a year ago might now be not the best
approach. All too often, avoidable mistakes turn what could have been a great business into
an also-ran.

Recognising and overcoming the common pitfalls associated with growth is essential if your
business is to continue to grow and thrive. Crucially, you need to ensure that the steps you
take today don't themselves create additional problems for the future. Effective leadership
will help you make the most of the opportunities, creating sustainable growth for the future.

This guide highlights the particular risks and mistakes that most commonly affect growing
businesses and outlines what you can do about them.

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Overview- Industry Profile-

Private sector banking is a type of banking process that involves financial institutions which
are primarily owned and operated by private individuals and business organizations rather
than by a government entity. This is in contrast with public sector banking, in which the
banking enterprise is owned and operated by the state in some manner. In many nations that
are supportive of free enterprise, private sector banking is the most common form of banking
available. While a government may not actually control banks and other financial institutions
that engage in this form of banking, private sector institutions do typically have to comply
with governmental regulations that apply to banking in general.
It is not unusual for private sector banking to play a major role in the economy of a given
nation. Since this form of banking along with other private sector business enterprises tends
to account for a large portion of the money that moves through an economy, financial
analysts will pay close attention to what is happening in the private sector. In some nations,
a government bank may sometimes set the standard for issues such as interest rates, with
banks in the private sector following the example. Since so much of the economy depends
on the activities occurring within the private sector, the current policies and procedures that
govern private sector banking within a given nation can often help to slow and eventually
reverse an unfavourable economic trend, such as a recession. Another benefit of private
sector banking is the support that the mechanism provides to the free enterprise system within
a number of economies. Assuming that the banks associated with the private sector are
working
Loans against Savings Certificates:

Banks are also providing loans up to certain value of savings certificates like National
Savings Certificate, Fixed Deposit Receipt, Indira Vikas Patra, etc. The loan may be obtained
for personal or business purposes.
Consumer Loans and Advances:

One of the important areas for bank financing in recent years is towards purchase of
consumer durables like TV sets, Washing Machines, Micro Oven, etc. Banks also provide
liberal Car finance.
These days banks are competing with one another to lend money for these purposes as default
of payment is not high in these areas as the borrowers are 147 usually salaried persons having
regular income? Further, bank's interest rate is also higher. Hence, banks improve their profit
through such profitable loans.
Securitization of Loans:

Banks are recently trying to securities a part of their part of loan portfolio and sell it to
another investor. Under this method, banks will convert their business loans into a security
or a document and sell it to some Investment or Fund Manager for cash to enhance their
liquidity position. It is a process of transferring credit risk from the banker to the buyer of
securitized loans. It involves a cost to the banker but it helps the bank to ensure proper
recovery of loan. Accordingly, securitization is the process of changing an illiquid asset into
a liquid asset.

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C. Credit Creation

Credit creation is one of the primary functions of commercial banks. When a bank sanctions
a loan to the customer, it does not give cash to him. But, a deposit account is opened in his
name and the amount is credited to his account. He can withdraw the money whenever he
needs.
Thus, whenever a bank sanctions a loan it creates a deposit. In this way the bank increases
the money supply of the economy. Such functions are known as credit creation.

• Secondary Functions:

The secondary functions of the banks consist of agency functions and general utility
functions.

A. Agency Functions

Agency functions include the following:

(1) Collection of cheques, dividends, and interests:

As an agent the bank collects cheques, drafts, promissory notes, interest, dividends etc., on
behalf of its customers and credit the amounts to their accounts. Customers may furnish their
bank details to corporate where investment is made in shares, debentures, etc. As and when
dividend, interest, is due, the companies directly send the warrants/cheques to the bank for
credit to customer account.
(2) Payment of rent, insurance premiums:

The bank makes the payments such as rent, insurance premiums, subscriptions, on standing
instructions until further notice. Till the order is revoked, the bank will continue to make
such payments regularly by debiting the customer's account.
(3) Dealing in foreign exchange:

A an agent the commercial banks purchase and sell foreign exchange as well for customers
as per RBI Exchange Control Regulations.
(4) Purchase and sale of securities:

Commercial banks undertake the purchase and sale of different securities such as shares,
debentures, bonds etc., on behalf of their customers. They run a separate 'Portfolio
Management Scheme' for their big customers.
(5) Act as trustee, executor, attorney, etc:

The banks act as executors of Will, trustees and attorneys. It is safe to appoint a bank as a
trustee than to appoint an individual. Acting as attorneys of their customers, they receive
payments and sign transfer deeds of the properties of their customers.
(6) Act as correspondent:

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The commercial banks act as a correspondent of their customers. Small banks even get travel
tickets, book vehicles; receive letters etc. on behalf of the customers.
(7) Preparations of Income-Tax returns:

They prepare income-tax returns and provide advices on tax matters for their customers. For
this purpose, they employ tax experts and make their services, available to their customers.
B. General Utility Services

The General utility services include the following:

(1) Safety Locker facility:

Safekeeping of important documents, valuables like jewels are one of the oldest services
provided by commercial banks. 'Lockers' are small receptacles which are fitted in steel racks
and kept inside strong rooms known as vaults. These lockers are available on half-yearly or
annual rental basis.
The bank merely provides lockers and the key but the valuables are always under the control
of its users. Any customer cannot have access to vault.

Only customers of safety lockers after entering into a register his name account number and
time can enter into the vault. Because the vault is holding important valuables of customers
in lockers, it is also known as 'Strong Room'.

(2) Payment Mechanism or Money Transfer:

Transfer of funds is one of the important functions performed by commercial banks.

Cheques and credit cards are two important payment mechanisms through banks. Despite
an increase in financial transactions, banks are managing the transfer of funds process very
efficiently. Cheques are also cleared through the banking system. Correspondent banking is
another method of transferring funds over long distance, usually from one country to
another. Banks, these days employ computers to speed up money transfer and to reduce
cost of transferring funds.
Electronic Transfer of funds is also known as 'Cheque less banking' where funds are
transferred through computers and sophisticated electronic system by using code words.
They offer Mail Transfer, Telegraphic Transfer (TT) facility also.

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STATEMENT OF THE STUDY PROBLEM:

Private banking sector is one of the vital financial pillars of the economy. Recent trends in private
banking sector is growing in size and sophisticated to meet the needs of modern economy and global
environment. The workforce employees directly interact with the customers in private sector banks.
The need of the role of HRM in private banking sector for applying appropriate recruitment,
selection and training & development system for the effective workforce. Requires also facilitate in
formulating welfare facilities and design fair and appropriate performance appraisal & promotion
system which can be motivating factors for the employees.
Private banks have to tone up their employees through the innovative training and development
practices which can motivate the employees and encourage their skills, knowledge, working ability
and better affect on the workplace environment.

Private banks also need to innovate their policies for performance appraisal in the view of employee
satisfaction with the help of performance appraisal, promotion policies, training to enhance their
skills, knowledge and attributes.
Being a part of economics development of the country, the main input is provided is talented and
knowledgeable workforce. Banks need to re- evaluate their human resource management roles. Free
flow of effective communication should be encouraged. The entire workforce should be working as
a team. Disciplinary actions should be initiated. The innovative and motivated role of HRM gives
the positive impact on the workforce environment.
Human Resource Management roles are the most important resource for any organization, therefore
the growth of the organization depends on the growth and development of the human resource
management. HRM practices and function plays the main role for the workforce or employee
satisfaction .
Private banking is working up with the challenges thrown by the economy. For the better workforce,
the HRM functions need to improve on the quality, increase productivity and decrease inefficiency.
The HRM functions plays a vital role in private sector banking. The success of the banking not only
depends on the customer satisfaction, its also depends on the employee satisfaction level in the
working environment. The level of satisfaction of the bank employees can be ensured and enhanced
by the effective human resource management.

The private banking sector involves the HRM functions and practices as employee diversity for
nurturing people capability, employee engagement with day to day operations, learning and
development with different modes, talent acquisition programs, leadership development for
capability development, safe secure and harassment free workplace, performance appraisal, human
rights and welfare facilities for employee satisfaction and good workplace environment.

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1.4 Objectives of the study:

Study objectives-

The three main objectives are:-

1- To study HRM practices followed in the various stages of organization.

2- Evaluating employee satisfaction in an organisation.

3- Analysing the effect of workplace environment and HRM practices on the workforce.

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1.5 Scope of the study:

The scope of the study are as follows:

1- The role of HRM is the most important function in the banking industry.

2- The private banking sector is service based and handling financial and economic risks. So it is the
challenge for the industry; for managing the risks the HRM strategies are helpful.
3- For maintaining balance of experience and employee in workforce.

4- Measuring the overall performance of the employees and improve the performance working in
different departments.
5- Provides the adequate praise and promotion to the employees.

6- Trained the employees for better workplace environment.

7- Maintaining innovative welfare facilities to encourage the employees and their level of satisfaction

8- Encouraging the updated future recruitment and selection process or method for hiring talented,
skilled, knowledgeable people for higher performance and motivated workforce in the working
environment.

1.6 Limitations:

1. If the sample size is too small, it will be difficult to find employee satisfaction and analyze the
workplace, as tests normally require a larger sample size.

2. A lack of data or of reliable data will likely require to limit the scope of the analysis.

3. Sometimes it is the case that, after completing the interpretation of the findings, we discover that
the way in which we gathered data inhibited the ability to conduct a thorough analysis of the
results.

4. Self reported data I limited by the fact that itrarely can be independently verified.

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INDUSTRY PROFILE

History And Evolution Private-sector banks have been functioning in India since the very
beginning of the banking system. Initially, during 1921, the private banks like bank of Bengal, bank
of Bombay and bank of Madras were in service, which all together formed Imperial Bank of India.
Reserve Bank of India (RBI) came in picture in 1935 and became the centre of every other bank
taking away all the responsibilities and functions of Imperial bank. Between 1969 and 1980 there
was rapid increase in the number of branches of the private banks. In April 1980, they accounted
for nearly 17.5 percent of bank branches in India. In 1980, after 6 more banks were nationalized,
about 10 percent of the bank branches were those of private-sector banks. The share of the private
bank branches stayed nearly same between 1980 and 2000. Then from the early 1990s, RBI's
liberalisation policy came in picture and with this the government gave licences to a few private
banks, which came to be known as new private-sector banks. There are two categories of the private-
sector banks: "old" and "new". 112 The old private-sector banks have been operating since a long
time and may be referred to those banks, which are in operation from before 1991 and all those
banks that have commenced their business after 1991 are called as new private sector banks.
Housing Development Finance Corporation Limited was the first private bank in India to receive
license from RBI as a part of the RBI's liberalization policy of the banking sector, to set up a bank
in the private-sector banks in India. Historically, the private sector banks played a crucial role in the
growth of joint stock banking in India. The first half of the 20th century witnessed phenomenal
growth of private sector banks. As a result in 1951, there were 566 private banks of which 474 were
non-scheduled and 92 scheduled classified on the basis of
their capital size. The role of private sector banking started declining when the Government of India
entered banking business with the establishment of State Bank of India in 1955 and subsequently
two rounds of bank nationalization one in July 1969 (14 major banks), another in April 1980
(takeover of 6 banks). Consequently, the presence of public sector banks has increased.

• Types of Private sector banks in India-

A) Old Private Sector Bank

1) Catholic Syrian bank

2) City union bank

3) Dhanlaxmi bank

4) Jammu and Kashmir bank

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B) New Private Sector Bank

1. HDFC BANK: HOUSING DEVELOPMENT & FINANCE CORPORATION (HDFC), A

PIONEERING NBFC WELL REPUTED FOR ITS HOME LOANS. ESTABLISHED IN 1994, IT
RANKS TODAY AS INDIA‟S LARGEST PRIVATE SECTOR BANK BY ASSETS AND MARKET
CAPITALIZATION.

IT WAS ALSO RANKED 69 AMONG BRANDZ TOP 100 MOST VALUABLE GLOBAL BRANDS IN 2016

AND HAS WON INNUMERABLE ACCOLADES. BY MID-2017, HDFC BANK HAD 4,715 OF BANKING

AND FINANCIAL SERVICES TO RETAIL, CORPORATE AND NON-RESIDENT INDIAN CUSTOMERS THROUGH
ITS STATE-OF-THE-ART SYSTEMS AND ONLINE PORTALS .

2. AXIS BANK: AXIS BANK IS AN OFFSHOOT OF UNIT TRUST OF INDIA (UTI)

RANKS AMONG THE NEW GENERATION PRIVATE BANKS.

It was established in 1993. Axis Bank operates some 3,200 branches in all states and Union
Territories of India and has over 13,000 ATM locations. Indeed, Axis Bank has a unique distinction
– of operating the branches and over 12,260 ATM locations. HDFC Bank offers the entire array
world‟s highest ATM point at 4,024 meters above sea level in Thegu,
Sikkim. Axis Bank has several subsidiaries and Non-Banking Financial Companies (NBFCs)

3. ICICI BANK: ICICI BANK WAS LAUNCHED IN 1994. ITS EXPANDED INITIALS

STAND FOR INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA. ICICI

BANK RANKS AS THE THIRD LARGEST PRIVATE BANK OF THIS COUNTRY .

It has a network of over 4,900 branches and some 14,450 ATM locations spread across India.

ICICI Bank has representations in about 20 countries in the Middle East, North America,

Africa, Europe and Far East Asia. In 2000, ICICI Bank scored a first for the nation‟s private banking
industry: it is the first private Indian bank whose shares were listed on New York
Stock Exchange.

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4. INDUSIND BANK: LAUNCHED IN 1994, INDUSIND BANK NOW OPERATES

ABOUT 1,500 BRANCHES AND NEARLY 2,000 LOCATIONS ACROSS THE COUNTRY.

top bank among resident Indians too. Indusind Bank launched several pioneering banking projects
in India such as allowing customers to select their own account number, money-on- mobile, and
many others. The bank has won several prestigious accolades for its innovative products and
banking services.

5. YES BANK: Yes Bank was founded in 2004 and has headquarters in Mumbai. It ranks

among the topmost private banks of India. According to its corporate website, Yes Bank has over
1,000 branches covering all states of India and some 1,800 ATM locations. Yes Bank is also billed
as the fastest growing private bank of this country. Yes Bank offers a unique service for women:
called Yes Grace Bank, these special branches are operated by female staff and offer special savings
and investment products exclusively targeted at the financial empowerment of women.

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Present status of the organization:

1. Overall situation with regard to outstanding deposits-

As of 31 March, the total amount of deposits in the Indian banking system was ₹125.6 trillion.
Private sector banks 28.7%. As of 31 March 2011, when total amount of deposits in the Indian
banking system was ₹53.9 trillion. The share of private sector banks was a little
over 18%. Clearly, private banks have gained at the cost of public sector banks.

2. The overall situation with regard to outstanding loans-

As of 31 March, the total amount of loans given out by Indian banks was ₹98.2 trillion, private
banks had 33.6%. The situation was different a few years ago. As of 31 March 2011, when the total
amount of loans of the Indian banking system was ₹40.8 trillion, private sector
banks around 17.8%.

3. The situation in 2018-19-

Till now, we have looked at the outstanding deposits and loans of banks. Now we will look at loans
given out and deposits raised during a particular year. In 2018-2019, private banks raised deposits
worth ₹7.1 trillion . In 2010-11. In 2018-19, privatebanks gave a total of ₹7.3 trillion in loans.
Comparing this to 2010-11, private banks had given ₹1.4 trillion loans.

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Top 5 private banks stare at NPAs doubling to 5% in FY21-

Top five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor
loan off take and the moratorium-driven contraction in net interest margins, warns a report.

These five banks, namely HDFC Bank NSE 3.38%, ICICI Bank, Axis Bank NSE -0.21% , Kotak
Mahindra Bank NSE 0.36% and Indusind Bank NSE 0.42%, collectively control a quarter of the
system and three-fourths of the private banking space, according to a report by India Ratings on
Friday.

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LITERATURE REVIEW
Review of literature various authors relevant to the topic:

HRM Practices are studied widely in different parts of the world. It is assumed
that HRM practices are widely associated with job satisfaction. Because many
scholars andpractitioners believe that sound HR practices result in a better level
of job satisfaction which ultimately improves the organizational performance.

1. Minbaeva(2008) HRM Practices used to develop competencies that are

specify the objectives and goals of the organizations and the can also add
sustainable competitive advantage.

2. Werbal and DeMarie (2005) HRM Practices including performance

appraisal,

compensation, selection practices and raining and development practices a can

be collected as means to communicate to the employees regarding various skills
and behaviors to create and sustain a competitive advantage.

3. Antonacopolou (2000) Training and development id referred as learning

opportunity that delivers employee with to understand the organizational
value and performance standard.

4. Azmi (2011) Training programme is taken differently by the private and

public sector.

Private banking follows on the jobs training methods as well as formed many
institute to give training.
5. Dransfield (2000) Performance management within organization is to
strategize how firms can get the utmost benefits from their employees. The
approach to measuring performance can be classified as a three step
approach that composed by objectives, appraisal and feedback.

6. Cowling and Newman (2001) Service quality has been widely used to
evaluate the performance of banking sectors especially private banks.

7. Ghosh Rai, Chauan, Baranwal and Srivastava(2016) explored the

potential mediating role of employee engagement and rewards to employees
among private bank employees in India. The results of the study concluded
that rewards and recognitions to employees was found to be a strong
predictor of employees was found to be strong predictor ofemployee
engagement, finally leading to better performance of banks.

8. Shrivastava and Purang (2009) investigated the levels of job satisfaction

among the public and private sector banks in India. Theresults indicated that
banks employees in private sector perceive grater job satisfaction with

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regards to pay, social and growth aspects of job in comparison to the public
sector banks.

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Definition and classification of terms used in project-

Job Satisfaction :

Job satisfaction is considered to be one of the primary requirements of a well-

run organization. This focuses on employees of private banks in India and aim
several factors/variables have been clubbed as: work aspects, compensation,
training, career development, supervision and work life balance. Today banking
sector needs to realign their HR practices like recruitment, career development
and strong staff management Banking sector needs to build staff morale,
organizational culture and training, retraining to make their employee competent
to achieve productivity excellence.
Factors Responsible for Job Satisfaction: Employees tend to prefer jobs that
give them opportunities to use their skills and abilities and offer a variety of
tasks, freedom, and feedback on how well they are doing. Jobs that have too
little challenge create boredom, but too much challenge creates frustration and a
feeling of failure. Under conditions of moderate challenge, most employees will
experience pleasure and satisfaction.

A) Training and development: The types of training and development

programs are as follows:- On the job training Off the job training
(Instruction & demonstration); (Method of case study); (Job Rotation);
(Method of audio-visual); (Junior Boards ); (Seminars & ); (Under study);
(Management games); (Projects); (Role Playing); (Career & Counselling);
(Seminar & Workshops); (Reading & References) any organization
training helps in the development of an employee and also improves an
employee‟s skills and knowledge at a task and order to attain a objective, it
is a sequence of opportunities and experiences which was designed to
modified an employee‟s attitude.
B) Performance appraisal:

In an organization, the most important element for information and control

system is performance appraisal “For personnel decisions valuable information
provides by performance appraisal like promotions, demotions, pay increases,
terminations and transfers”.
“In an organization, it helps to judge the effectiveness of recruitment, selection,
placement and orientation system”. “It also helps to analyze development needs
and training of an individual employee”. “To improve performance through
appropriate feedback to employees, a performance appraisal can be used”. “An
individual employees performance on job; succession planning, human resource
planning and career planning facilitates by performance appraisal”.

C) Promotional policy:

A promotion is the advancement of an employee's rank or position in an

organizational hierarchy system.

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RESEARCH DESIGN & METHODOLOGY

4.1: Research Methodology-

Data collection (Primary & Secondary)

Primary and secondary.

Primary- Survey Questionnaire.

Secondary- Research papers, News articles, websites.

4.2: Research Design:

Research design is descriptive in nature.

A descriptive research design can use a wide variety of research methods to

investigate one or more variables. It aims to accurately and systemically describe a
situation or phenomenon.

4.3: Sample-

SAMPLING TECHNIQUE:
Sample technique is non-probability (Convenience sampling). Data on the
various aspects directly and indirectly related to the investigation were gathered
through questionnaire to the respondent. The questions were simple to
understand so that information can be collected from various respondents
easily.

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DATA INTERPRETATION & ANALYSIS

1. How old are you?

AGE

9% 8%

upto 25 years
26 To 35 years
36 to 45 years

83%

Interpretation:
8% of the respondents belong to the age group of (up to25 years).

9% of the respondents belong to the age group of (35 to 45 years).

83% of the respondents belong to the age group of (26 to 35 years).

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2. What is your educational qualification?

Educational Qualification

6%

48%
Graduate
46%
Post Graduate
diploma or professional degree

Interpretation:

48% of the respondents are Graduate.

46% of the respondents are Post Graduate.

6% of the respondents are qualified diploma or professional degree.

3. What is your designation at present?

Designation

14%
34%
14% Manager
Accountant
Clerk/Secretary
22% Sales officer
16%

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Interpretation:
34% of the respondents are manager in private banks.

16% of the respondents are accountant in the private banks.

22% of the respondents are clerk/secretary in the private banks.

14% of the respondents are the sales officer in the private banks.

14% of the respondents are the sub staff in the private banks.

4. Work experience in the bank?

Work experience

10% 9%

Less than 1 year

1 to 5 years
5 years and above
81%

Interpretation:

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SAMPLE UNIT:
Responses collected from employees of private sector banks.

SIZE:
The sample size of the study is (70).

Sources of data:
The validity of research is based on the data collected for the study. The present research is based
on both primary as well as secondary data. The primary data is collected from the area of the study.
The employee of private banks on the basis of simple random sampling method were taken as
respondents.

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CHAPTER-6

FINDINGS

6.1 Findings of the analysis:

Objective 1: To study HRM practices followed in the various stages of

organization (private banks).

The private banks followed HRM practices for better performance of banks and also for the
betterment of the environment of the workplace. Private bank believes in employee diversity for
the capability of the people in excellence and achieving the short and long term goals of the
organizations. Regular communication through emails and intranet, team off-sites, performance
management discussions, town hall meetings by senior management, training, employee
suggestions schemes, rewards and recognition programmes, key events and festival celebrations,
health awareness sessions and fun at workplace activities for employee for employee
engagement.
Most of the employees come to job in private banks through newspaper advertisement and employee
exchange and in few cases through deputation. In most of the cases the selection process for the
recruitment in private banks is only interview and written test exams, direct appointment method is
applied in very few cases.
The private banks give promotion based on the merit cum seniority or only seniority, in very few
cases banks were applied written test with merit as promotional policy.
The private banks give 100% performance appraisal system and welfare facilities for the employee
satisfaction and growth of the organization but every organization should always work upon their
HRM practices for the smooth running of the workplace system. Objective 2: Evaluating
employee satisfaction in an organization (private banks).
In the private sector banks, the most of the employees are satisfied with the recruitment practices,
promotional policy, transfer practices, performance appraisal system and training practices
followed in their private sector banks.
Some of the employees are having indifferent opinion about the HRM practices followed in their
private banks.
A very few of the employees are not satisfied with the performance appraisal and transfer practices
applied by their bank and some of the employees are not satisfied with welfare facilities followed
by their private sector banks.
Objective 3: Analysing the affect of workplace environment and HRM practices

on the workforce.

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The satisfaction level of employees in private banks effects very positively, the employees give their
best for their knowledge enhancement and for the growth of the organization. The HRM practices
aims to create and nurture a committed, motivated and knowledgeable pool of talent. The private
bank focuses on training of its employees on the job and through training programmes conducted
by internal and external faculty. The bank has consistently believed that broader employee
ownership to share a positive impact on its performance and employee motivation.

The policies and practices of all the private banks concentrated on recruiting, promoting and placing,
compensation, training& development and motivating employees to work for ensuring that policies
are properly implemented, thereby helping the employees to set and achieve individual and
organisational goal.
 Proposition 1: The training and development of HRM practices influence on the
job satisfaction-
The most of the employees are positively influence by their bank training and development policy
and bank applied need based training practice and some of them applied cadre based training policy.
The 89% of the private banking employees are sent for the training by their bank. The 33% of the
employees are highly satisfied, 58% are satisfied, 9% are indifferent with their training and
development policy followed by their bank.

 Proposition 2: The performance appraisal process of HRM practices positively

influence the employee satisfaction-
The most of the private bank employees are positively satisfied with the performance appraisal
followed by their bank. The 34% employees are 34% highly satisfied, 57% are satisfied and 7% of
the indifferent with the performance appraisal followed by their private banks. A few of (2%) are
not satisfied.

 Proposition 3: The promotion policy of HRM practices positively influence the

employee satisfaction-
The 51% of the private bank applied „merit cum seniority‟ as promotional policy and 44% are
applied „seniority‟ as promotional policy and other are applied different promotional policies in
their banks. The most of the employees are also support „merit cum seniority‟ as promotion
method. 88% of the employees are positively influence by the promotional policy followed in their
bank and very few of them are indifferent.

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CONCLUSION

In relation to the study, the present competitive world, the private banking sector plays very
important role in developing Indian economy, every private bank trying to devise innovative HRM
practices to attract best talent and give them comfortable environment to work with, that enables
the banks to retain talents.
The overall opinion of the employees of private banks is more satisfactory towards the HRM
practices. It is observed that performance appraisal and training practices is very good in private
sector banks but it is clear from the above transfer satisfaction graph, a very few employees are not
satisfied with the transfer policies.
Job satisfaction, Performance, and training have greater positive influence in private sector banks.

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RECOMMENDATION

Training and development plays a vital role in private sector banks.

Performance appraisal is the base for employee promotion and career.

Promotion of employees is on the basis of seniority and merit cumseniority.

The HRM practices directly connected with the growth of the organization.

The transfer policy needs to be improved for the betterment of the employees.

Overall all the private sector banks positively followed the HRM practices for the individual and
organizational growth and development and this positive impact is satisfactory for the employees
of the private sector banks and effect of HRM practices are positive at the workplace environment
and on the workforce but improvement and innovation is always required everywhere for better
result as individually and for as whole.

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LIMITATIONS
There are certain limitations, which cannot be ruled out after taking all possibleprecaution regarding
the basic rules of personnel departments.

First of all, the scope of study is limited as it come only important provisions laid
down by govt. for the welfare of the workers.
1. Recent Origin

2. Lack of support of Top Management

3. Improper Actualization

4. Inadequate development programs

5. Inadequate Information

The sample size was small here, the conclusion might not be right for the remaining candidates.

We do not spend very much time with every and each employee for gathering their perception.

The sample size was small here, the conclusion might not be right for the remaining
employees.

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BIBLIOGRAPHY
 Aarti Sharma,(2013). Job satisfaction among bank employees. International Journal of

Scientific and Technology Research, Vol 2, Issue 8.

 Ankita Jain& Anukool Manish Hyde. A study of Human Resource Management in selected banks
in India. International journal of management studies, 10.188843/
 Bhatt, K. J & Mehta, T. N (2003) Effect of HRD climate in private sector banks at Bhavnagar
District. International journal of advance research in computer science and management studies,
1(7), 408- 413.
 Biwas, S., Giri, V. N & Srivastava, K.B.L (2006).Examining the role of HR practices in improving
individual performance and organizational effectiveness. Management and Labour studies, 31(2),
111- 133.
 Ghosh,P., Rai, A., Chauhan, R., Baranwal. G., & Srivastava, D., (2016). Rewards and 5.

recognition to engage private bank employees, Management research review, 39 (12), 1738- 1751.
 Ghosh,P., Rai, A., singh, A., & RaginiChauhan.,(2016). Support at work to fuel engagement: A
study of employees of Indian banking sector. Reiew of integrative business & Economic research ,
5(2), 1-10.

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