HUMAN RESOURCE MANAGEMENT IN BANKING SECTOR

A Project Submitted To

University of Mumbai
for Partial Completion of The Degree of
Bachelors in commerce (Banking and Insurance)

Under the Faculty of Commerce by

Shrikar Rajesh Sharma

Under The Guidance of

Prof. Bhumika More

SIES (NERUL) COLLEGE OF ARTS, SCIENCE, & COMMERCE

Sri Chandrasekarendra Saraswati Vidyapuram

Plot 1-C, Sector-V, Nerul Navi Mumbai – 400706 2020-2021

2023- 2024

1
 SIES (NERUL) COLLEGE OF ARTS, SCIENCE, & COMMERCE

Sri Chandrasekarendra Saraswati Vidyapuram,

Plot 1-C, Sector-V, Nerul Navi Mumbai –

Certificate
This is to certify that Shrikar Rajesh Sharma Roll No - I.21.113 has worked and duly
completed his project work for the degree of Bachelor of Commerce (Banking and Insurance)
under the faculty of Bachelor of Commerce (Banking and Insurance) and his project is entitled
Human Resource Management in Banking Sector under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is his work and facts reported by his personal findings and investigations.

Internal Guide HOD Principal

Ms.Bhumika More Ms. Lata Dr. Koel
Lokhande Roychoudhury

INTERNAL EXTERNAL
EXAMINER EXAMINER

2
 DECLARATION

I the undersigned Mr. Shrikar Rajesh Sharma here by, declare that the work entitled in this
project work titled “Human Resource Management in Banking sector”, forms my own
contribution to the research work carried out under the guidanceof Prof. Bhumika More is a
result of my own research work and has not been previously submitted to any other university
for any other Degree/Diploma to this or anyother university.

Wherever reference has been made to the previous works of others, it has been clearly
indicated as such and included in the bibliography.

I hereby further declare that all information in this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Name & Signature of the learner

Mr. Shrikar Rajesh Sharma

Name and signature of the Guiding teacher

Prof. Bhumika More

3
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous, and the debt is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me the chance to do this
project.

I would like to thank my Principal, Dr. Koel Roychoudhury, for providing the necessary
facilities required for the completion of this project.

I take this opportunity to thank our HOD Prof. Lata Lokhande, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Bhumika
More whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each person who directly and indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

4
 EXECUTIVE SUMMARY

Effective HR management is one of the most important survival requirements in this

competitive world. This paper attempted to test the hypothesis about managerial skills,
competitive advantage and staff development policies. This study shows that Indian
bank officials have good managerial skills to ensure industrial competitiveness. They
also have good administrative skills to manage human rights protection policies.
This article sheds light on the banking business that thrives on people power.” People are
the direct productivity enhancers of these services and people are its only
consumers. Banking was a flourishing industry in ancient India. Originally, industrial
houses initiated banks with the aim of obtaining funds for productive activities while
providing significant security, liquidity and fair returns to depositors. Banking was a kind
of traditional industry until 1969. When the Indian government took over the big
banks. With nationalization, banks ceased to be mere financiers of industry and
became living instruments of social change. More statistics are available to support the
phenomenal growth of the banking sector.

5
 INDEX

SR.NO CONTENTS PAGE NO

1) INTRODUCTION TO HRM 8

1.1 CONCEPT OF HRM 9-10

1.2 CHARACTERISICS OF HRM 10-12

1.3 NEED AND IMPORTANCE OF HRM 13

1.4 SCOPE OF HRM 14

1.5 JOB ANALYSIS AND JOB DESIGN 14-17

1.6 HUMAN RESOURCE PLANNING 17-20

1.7 RECRUITMENT AND SELECTION 20-23

1.8 EMPLOYEE TRAINING AND 23-24

DEVELOPMENT

1.9 PERFORMANCE AND APPRAISAL 25-26

1.10 OVERVIEW OF HRM IN BANKING 26-32

SECTOR

1.11 CHALLENGES FACED BY HR IN 33-34

BANKING SECTOR

2 RESEARCH METHODOLOGY 34-35

6
3 LITERATURE REVIEW 36-37

3.2 BANKS COMMENT ON HUMAN 38

RESOURCES

3.3 EMPLOYEE LEARNING AND 39-40

DEVELOPMENT IN PRIVATE AND
PUBLIC SECTOR BANKS
3.4 HR- THE GREATEST CHALLENGE FOR 41
PUBLIC SECTOR BANKS

3.5 RETUREMENT IN PUBLIC SECTOR 42

3.6 HUMAN RESOURCE MANAGEMENT IN 43-44

BANKS

3.7 CASE STUDY ON BANKS 45-55

4 DATA ANALYSIS & INTERPRETATION 56-73

5 CONCLUSION & SUGGESTION 73-75

7
 CHAPTER 1: INTRODUCTION

INTRODUCTION TO HRM
Management of human resources, referred to as personnel management, is the management
of workers, primarily employees. People management in any firm is the process of making
sure that workers are as productive as possible—not customers. This could involve
assigning, letting go of, or shifting employees to more productive positions. Several
universities offer this course as a core subject, and business schools offer it as a minor.
Another name for it is human resource management, which is a term that has the same
meaning.

8
Meaning of Human Resource Management
A business unit needs employees to look after different activities. This is called manpower or
human resource. Such human resource needs to be developed fully so that it will make positive
contribution for the progress and prosperity of a business unit. For this systematic development
and management of human resources is necessary. Human Resource Management (HRM) deals
with:
(a) Training
(b) Self-development
(c) Promotions
(d) Performance appraisal of manpower recruited in an organization.

HRM is an organized learning experience aimed at matching the organizational need for career
growth and development. It is a process involving series of learning activities designed to acquire
desired level of competence among employees. HRM is a continuous process and it needs money.
Such investment creates a team of efficient, skilled and trained manpower which brings success
and stability to a business unit. HRM programmes offer long term benefits to an organization.

CONCEPT OF HUMAN RESOURCE MANAGEMENT

Human resource management is a multifaceted discipline that revolves around harmonizing the
objectives of individuals with those of organizations to foster mutual achievement. Over time, the
conventional responsibilities of HR managers, primarily focused on oversight and assessment,
have transitioned into strategic roles as architects of change. Within the corporate framework,
personnel directors are gaining recognition as indispensable leaders. In the contemporary business
milieu, adept management of personnel stands as a critical pillar for success. Indeed, without
meticulously maintained personnel relations, attaining favorable financial or operational results
becomes an arduous endeavor.

Over time, there has been a noticeable rise in highly specialized and knowledge-driven
professions, accompanied by a decline in lower-skilled jobs. This shift underscores the necessity
for proactive human resource management (HRM) strategies aimed at mapping future skills.

Additionally, Indian organizations are undergoing significant transformations in their systems,

management cultures, and philosophies, driven by their alignment with global practices. There is
an increasing demand for the development of multifaceted skills among employees. The role of
HRM is consequently gaining even greater prominence.

Noteworthy trends include the recent emphasis within quality management standards such as ISO
9001 and ISO 9004 (2000) on fostering people-centric organizations. To effectively address these
issues, organizations must prepare themselves by prioritizing HR concerns, particularly in the
realm of training, with unwavering commitment from top management.

Human resource management, historically referred to as personnel management, originally

operated within the confines of a single department, primarily focusing on the administrative
aspects of human resources. This department was primarily responsible for a range of functions
including recruitment, selection, reward systems, performance appraisal, employee development,
grievance handling, retirement procedures, and various administrative tasks. Its inception and

9
evolution occurred within bureaucratic structures that prioritized the organization and
administration of manpower within an organizational framework.

Human resource management (HRM) encompasses a comprehensive process aimed at effectively

recruiting and mobilizing human resources to facilitate the attainment of organizational
objectives. At its core, HRM emphasizes the people aspect within management, focusing on key
areas such as recruitment, selection, development, motivation, and retention of human capital
within an organization. This critical function of management is intricately linked to the strategic
management of human energies and competencies, recognizing the pivotal role that individuals
play in organizational success. By strategically managing human resources, organizations can
optimize their workforce potential and drive sustainable growth and performance.

Human resource management holds a pivotal role in ensuring that individuals are strategically
positioned in roles that align with organizational needs, particularly in a constantly evolving
landscape. The performance of human resources within an organization serves as a cornerstone
for its overall effectiveness. Thus, there is a pressing need to establish an all-encompassing
framework that encompasses vital aspects like manpower planning, recruitment strategies,
motivational approaches, training and development initiatives, performance appraisal
mechanisms, remuneration structures, and protocols for industrial relations. This comprehensive
approach is indispensable for optimizing human capital utilization and fostering organizational
success in today's dynamic business environment.

Furthermore, human resource management is deeply concerned with nurturing the skills,
knowledge, and capabilities of individuals to effectively execute organizational tasks with
precision and efficacy. This field of study encompasses four fundamental functions: acquisition,
development, motivation, and maintenance of human resources. Acquisition involves sourcing the
right talent, development focuses on preparing individuals for their roles, motivation entails
activating their potential, and maintenance revolves around retaining talent within the
organization.

In essence, human resource management embodies the art of effectively managing and mobilizing
personnel within an organization. This is achieved through the implementation of diverse
practices and policies that underscore the value of human capital as a cornerstone asset of the
organization. Importantly, it integrates the personnel function seamlessly into the broader strategic
management framework, thereby aligning human resources with organizational objectives for
sustainable success.

10
Characteristics of Human Resource Management

(1) Upgrading Manpower:

The primary objective of human resource administration lies in spearheading the evolution
and enhancement of the workforce within an organization. By prioritizing the modernization
and skill development of employees, human resources not only catalyze individual
performance improvements but also foster a collective enhancement in organizational
effectiveness. This strategic emphasis on employee development serves as a catalyst for
driving overall organizational performance to new heights.

(2) Stress on Training:

Human Resource Management (HRM) encompasses a diverse array of comprehensive
programs meticulously crafted to provide guidance, education, training, and abundant
opportunities for the continuous growth and development of employees across various
departments and classifications within an organization. These programs are meticulously
structured to integrate and synergize the subsystems of training, career development, and
organizational development, ensuring a holistic approach to nurturing talent and fostering
professional advancement within the workforce.

(3) Attention to learning and career development:

Human Resource Management (HRM) programs are strategically designed to facilitate and
encourage continuous learning, self-improvement, and career progression opportunities for
employees. These initiatives represent the cornerstone of HRM, emphasizing the importance
of ongoing education and skill enhancement. Employees are encouraged to explore avenues
such as reading books and magazines, as well as participating in training programs, to enrich
their knowledge and expertise, thereby paving the way for career advancement. Through
dedicated efforts in learning and career development, employees unlock their full potential,
enabling them to achieve peak performance levels. As a result, they are often rewarded with
salary increases and promotions to higher positions within the organization, further validating
the effectiveness of HRM programs in nurturing talent and driving professional growth.

(4) Stress on Training:

Human Resource Management (HRM) encompasses a diverse array of comprehensive
programs meticulously crafted to provide guidance, education, training, and abundant
opportunities for the continuous growth and development of employees across various
departments and classifications within an organization. These programs are meticulously
structured to integrate and synergize the subsystems of training, career development, and
organizational development, ensuring a holistic approach to nurturing talent and fostering
professional advancement within the workforce.

(5) Stress on Training:

Human Resource Management (HRM) encompasses a diverse array of comprehensive
programs meticulously crafted to provide guidance, education, training, and abundant
opportunities for the continuous growth and development of employees across various
departments and classifications within an organization. These programs are meticulously
structured to integrate and synergize the subsystems of training, career development, and
organizational development, ensuring a holistic approach to nurturing talent and fostering
professional advancement within the workforce.
10
(6) Stress on Training:
Human Resource Management (HRM) encompasses a diverse array of comprehensive
programs meticulously crafted to provide guidance, education, training, and abundant
opportunities for the continuous growth and development of employees across various
departments and classifications within an organization. These programs are meticulously
structured to integrate and synergize the subsystems of training, career development, and
organizational development, ensuring a holistic approach to nurturing talent and fostering
professional advancement within the workforce.

(7) Attention to learning and career development:

Human Resource Management (HRM) programs are strategically designed to facilitate and
encourage continuous learning, self-improvement, and career progression opportunities for
employees. These initiatives represent the cornerstone of HRM, emphasizing the importance
of ongoing education and skill enhancement. Employees are encouraged to explore avenues
such as reading books and magazines, as well as participating in training programs, to enrich
their knowledge and expertise, thereby paving the way for career advancement. Through
dedicated efforts in learning and career development, employees unlock their full potential,
enabling them to achieve peak performance levels. As a result, they are often rewarded with
salary increases and promotions to higher positions within the organization, further validating
the effectiveness of HRM programs in nurturing talent and driving professional growth.

(8) Organizational Development:

Human Resource Management (HRM) entails a comprehensive approach to organizational
development, encompassing the cultivation of a harmonious and structured environment across
all facets of the organization. This involves orchestrating seamless coordination among diverse
tasks and facilitating effective communication channels throughout the organizational
hierarchy. Additionally, HRM plays a pivotal role in identifying and mitigating various forms
of conflicts that may arise within the workplace, thereby fostering a culture of collaboration
and mutual understanding among employees.

(9) Performance appraisal and review:

An ongoing evaluation of each member's and the group's contributions to the organization, as
well as a communication of such assessments to the individual in question, constitute
performance appraisal and review. This HRM function is performed for several reasons, such
as providing performance feedback, assessing the need for training, deciding whether to
enhance compensation for promotions, and so forth.

(10) Team Spirit:

Human Resource Management (HRM) primarily revolves around fostering a sense of
teamwork and collaboration across the entire organizational structure. This entails ensuring
seamless integration and coordination among different departments and levels of management.
By nurturing a culture of teamwork, HRM paves the way for the systematic and harmonious
advancement of the organization, steering it towards sustainable growth and success.

(11) Compensation and reward:

Organisation compensate employee through wages and salary bonuses and benefit such as
health insurance vacation time and pension programs the presence or absence of rewards and
recognition is important to employees moral and performance compensation decisions include
determining: ensuring fair and equitable pay differences among employees designing a pay
package relative to that of its competitors, forms of compensation and so on.
11
(12) Maintaining effective employer-employee relationship
A crucial aspect of Human Resource Management (HRM) involves fostering and nurturing
harmonious relationships between management and employees within the organization. The
overarching goal of HRM is to cultivate a culture of cooperation, trust, and active engagement
among employees in the company's operations and objectives. This multifaceted function of
HRM encompasses not only promoting open communication channels but also actively
involving employees in decision-making processes. Additionally, HRM plays a pivotal role in
addressing and resolving employee grievances through appropriate channels, thereby ensuring
a conducive and supportive work environment for all stakeholders involved.

(13) Health and safety management

This function of HRM includes activities and events that serve to protect organisation member
from illness and physical dangers in the workplace and to assist them with their physical and
emotional health. For many organisation, protecting the health and safety of human resources
prime social responsibility this HRM function serves to preserve the human resource of the
organization.

(14) Employee participation

The concept of employee participation represents a relatively recent addition to the scope of
Human Resource Management (HRM). It revolves around empowering employees by
providing them with opportunities to voice their opinions, sharing pertinent information with
them, and engaging in consultative processes regarding matters of mutual interest.
Encouraging employee participation is viewed as a crucial milestone in fostering the
principles of industrial democracy within the organizational framework.

(15) Organisation improvement

Organisation month constantly improve themselves due to emergence of new idea regarding
productivity, rapidly changing technology and competition from other organizations. The
function of human resource manager is to ensure the flow of events through which people in
organisation improve organisation's effectiveness. He has to constantly lookout for the ways
to improve the organisation through employee training, implementing, work redesign
programs and so on.

(16) Wide Scope:

Human Resource Management (HRM) programs exhibit an expansive scope that encompasses
a multitude of dimensions. With its inherently multidisciplinary nature, HRM extends beyond
conventional boundaries to provide managers with comprehensive guidance and instruction
across various facets of business management. This comprehensive approach aims to equip
managers with the requisite skills and knowledge to effectively navigate through complex and
intricate managerial challenges encountered within the organizational landscape.

(17) Huge spending by Management:

In the fiercely competitive landscape of contemporary business, organizations allocate
substantial financial resources towards Human Resource Management (HRM) activities.
Despite the significant investment involved, such expenditures are deemed indispensable for
ensuring the survival and prosperity of companies. HRM programs play a pivotal role in
nurturing a mature and adept workforce, equipped to navigate the complexities and challenges
of the modern business environment.

12
NEED AND IMPORTANCE OF HRM

(1) To create stable labour force:

Human resource management programs are indispensable for cultivating a workforce that is
stable, efficient, skilled, and adaptable to the evolving needs of businesses, both in the present
and the future. These programs play a pivotal role in developing employees who possess the
necessary competencies and maturity to meet the challenges and demands of the dynamic
business environment.

(2) To update the quality of manpower:

HRM activities play a crucial role in enhancing the calibre of employees in line with the
company's expansion and evolving requirements, thereby mitigating organizational
inefficiencies. Moreover, HRM programs facilitate the upward mobility of employees, even to
higher positions, by offering training and personal development opportunities, particularly to
those at lower hierarchical levels within the organization.

(3) To develop strength for survival:

HRM programs must survive in today's competitive business environment. Companies can face
market competition by improving quality, reducing costs and avoiding waste. All this can be d
one through HRM.

(4) To face challenges of technological changes:

As technological advancements continue to accelerate across various business sectors, it's
imperative for HR programs to adapt accordingly. These programs are essential for ensuring
that organizations can keep pace with the rapid rate of technological change. Naturally, the
adoption of new technologies such as IT systems and automation necessitates employee
training to facilitate smooth integration and effective utilization within the workplace.

(5) To satisfy the demand of self-development of employees:

Human Resource Management (HRM) is essential for addressing employees' requirements
concerning self-development and career advancement aspirations. Employees seek various
opportunities such as training programs, refresher courses, promotions, transfers, and career
guidance to enhance their personal and professional growth. HRM initiatives are crucial for
meeting the self-development and career advancement needs of employees effectively.

(6) To meet future manpower needs:

Human Resource Management (HRM) plays a vital role in anticipating and fulfilling the future
manpower requirements of an organization. As executives, managers, and supervisors depart
from their roles due to factors such as retirement or career changes, there arises a need for
competent successors to fill these positions seamlessly. HRM is essential for proactively
identifying and developing a pool of capable individuals within the organization who can step
into these leadership roles as a second line of defense. By focusing on succession planning and
talent development, HRM ensures the continuity and sustainability of organizational leadership
and operations.

13
 SCOPE OF HRM

 HUMAN RESOURCE PLANNING

 JOB ANALYSIS AND DESIGN
 RECRUITMENT AND SELECTION
 ORIENTATION AND PLACEMENT
 TRAINING AND DEVELOPMENT
 PERFORMANCE APPRAISAL
 COMPENSATION MANAGEMENT
 CAREER PLANNING, PROMOTIONS AND TRANSFERS
 MOTIVATION AND COMMUNICATION
 EMPLOYEE FAREWELL
 HUMAN RESOURCE INVENTORY
 HUMAN RESOURCE INVESTMENT SYSTEM
 EMPLOYEE SAFETY AND HEALTH
 INDUSTRIAL RELATION

JOB ANALYSIS AND JOB DESIGN

JOB ANALYSIS
Job analysis refers to the process by which we understand the nature of the job and it's
human requirements. Job analysis provides information about why the job is done, the
way it is done, the equipment or machinery used, the skill or training or education
needed to perform the job, the wages paid, the working condition and any other special
requirement or unique characteristics of the job.

STEPS IN JOB ANALYSIS:

1. Determine the Use of the Job Analysis Information: Start by identifying the use to which
the information will be put, since this will determine the type of data you collect and the
technique you use to collect them.

2. Collection of Background Information: process of assessing a job's components, its

relationship with other positions, and the necessary qualifications for proficient performance.
This assessment requires gathering relevant information, which can be obtained through
various means. These include examining organizational charts, which illustrate how the job
being evaluated interacts with other roles and where it stands within the broader organizational
structure. Additionally, class specifications provide insights into the general prerequisites of

14
 the job category to which the evaluated position belongs. Existing job descriptions serve as a
foundational resource, offering a starting point for developing or refining the revised job
description based on the gathered information.

3. Selection of Jobs for Analysis: To do job analysis is a costly and time consuming process. It
is hence, necessary to select a representative sample of jobs for purposes of analysis. Priorities
of various jobs can also be determined. A job may be selected because it has undergone
undocumented changes in job content. The request for analysis of a job may originate with the
employee, supervisor, or a manager.

4. Collection of Job Analysis Data: Collecting job data regarding job features, required
employee qualifications, and job requirements is essential for effective workforce
management. This information can be gathered from various sources within the organization.
One approach is to directly engage employees who are actively performing the job. Their
firsthand experience provides valuable insights into the intricacies of the job and the skills
necessary for its execution. Additionally, input from other employees, such as foremen or
supervisors, who closely observe workers performing the job, can offer a complementary
perspective. These individuals, through their regular interaction with the workforce, acquire
valuable knowledge about job tasks, skill requirements, and potential challenges. By tapping
into the expertise of both frontline employees and supervisory staff, organizations can ensure
comprehensive data collection, which forms the foundation for informed decision-making in
areas such as recruitment, training, and performance management.

5. Processing the Information: Once job analysis information has been gathered, the
subsequent step is to organize and present it in a manner that facilitates its utility across
various personnel functions within the organization. This process requires careful
consideration of several key issues. Firstly, determining the appropriate level of detail in the
job analysis is crucial. This entails striking a balance between providing comprehensive
insights into the job's requirements and avoiding unnecessary complexity. Secondly, there is a
need to assess whether the job analysis information can be expressed quantitatively.
Quantifying job analysis data can enhance its precision and facilitate comparisons across
different roles within the organization. However, not all aspects of a job may lend themselves
to quantitative measurement, and qualitative descriptions may be more appropriate in some
cases. These considerations underscore the importance of thoughtful deliberation in shaping
the format and presentation of job analysis information to optimize its usefulness for personnel
functions.

6. Preparing Job Descriptions and Job Classifications: Job information which has been
collected must be processed to prepare the job description form. It is a statement showing full
details of the activities of the job. Separate job description forms may be used for various
activities in the job and may be compiled later on. The job analysis is made with the help ofthese
description forms. These forms may be used as reference for the future.

15
7. Developing Job Specifications: Job specifications are also prepared on the basis of
information collected. It is a statement of minimum acceptable qualities of the person to be
placed on the job. It specifies the standard by which the qualities of the person are measured.
Job analyst prepares such statement taking into consideration the skills required in performing
the job properly. Such statement is used in selecting a person matching with the job.

EXAMPLE OF JOB DESCRIPTION

16
JOB DESIGN
Job design is a systematic process aimed at determining the components of a job, including its duties
and responsibilities, as well as the methods to be employed in carrying out those tasks, encompassing
techniques, systems, and procedures. Additionally, job design involves establishing the relationships
that exist between the job holder and their superiors, subordinates, and colleagues within the
organizational hierarchy. This comprehensive approach ensures that jobs are structured in a manner
that optimizes efficiency, effectiveness, and collaboration among employees, ultimately contributing
to the achievement of organizational objectives.

PROCESS OF JOB DESIGN

Job design is a multifaceted process that entails carefully crafting the various aspects of a job to ensure
its effectiveness and efficiency within an organization. It involves several key considerations:

1. Determining Duties and Responsibilities: The first step in job design is to identify the
specific duties and responsibilities associated with the job. This includes outlining the tasks
that the job holder will be responsible for performing on a regular basis.

2. Selecting Methods and Techniques: Job design also involves determining the methods,
techniques, systems, and procedures that will be used to carry out the tasks associated with the
job. This may include specifying the tools, equipment, and technologies that will be utilized in
performing the job.

3. Establishing Relationships: Another important aspect of job design is defining the

relationships that exist between the job holder and other individuals within the organization.
This includes delineating the reporting relationships between the job holder and their superiors,
as well as the interactions they will have with subordinates, colleagues, and other stakeholders.

By carefully considering these factors, organizations can design jobs that are well-structured, clearly
defined, and aligned with the overall goals and objectives of the organization. Effective job design can
enhance employee satisfaction, productivity, and performance, while also contributing to the
achievement of organizational success. Additionally, it can promote collaboration, communication,
and teamwork among employees, fostering a positive work environment conducive to individual and
organizational growth.

HUMAN RESOURCE PLANNING

Human resource planning is a critical aspect of organizational management that serves to prepare
both organizations and employees for the future. At its core, human resource planning aims to
anticipate future scenarios and implement proactive measures to mitigate potential challenges.
This involves predicting future trends and needs, such as the types of skills required for upcoming
roles, and assessing the organization's existing human resource capabilities.

Essentially, human resource planning involves analyzing an organization's or individual's future

human resource requirements. This includes evaluating factors such as advancements in
technology, changes in market demands, and shifts in industry trends that may impact the

17
workforce composition and skill requirements. By understanding these future needs, organizations
can develop human resource policies and practices to address potential gaps and challenges.

For instance, human resource planning may involve implementing training programs to develop
new skills or enhance existing ones among employees, thus ensuring that the organization remains
competitive and adaptable to evolving demands. Similarly, it may involve strategies for talent
acquisition, retention, and succession planning to ensure a steady pipeline of skilled personnel to
meet future needs.

In essence, human resource planning is a forward-thinking process that enables organizations to

align their human capital with strategic objectives and anticipate and address potential obstacles
before they arise. By fostering a proactive approach to workforce management, human resource
planning contributes to organizational resilience, agility, and long-term success.

Human Resource Planning (HRP) is a structured process comprised of four distinct phases, each
serving a crucial function in aligning an organization's human capital with its strategic objectives:

1. Data Gathering and Analysis:

The initial phase involves collecting and analyzing relevant data regarding the organization's
workforce, including current staffing levels, skills, and capabilities, as well as forecasting
future workforce needs. This is typically done through methods such as manpower
inventories and workforce forecasts, enabling the organization to gain insight into its
current and future manpower requirements.

2. Establishing Manpower Objectives and Policies:

In the second phase, the organization sets clear manpower objectives and formulates policies
to guide its workforce management strategies. This involves defining specific goals related
to staffing levels, skill development, talent acquisition, and succession planning. Top
management approval is sought to ensure alignment with the organization's overall
strategic direction.

3. Designing and Implementing Plans:

The third phase focuses on developing and implementing action plans and initiatives to
achieve the established manpower objectives. This may include recruitment and selection
strategies, training and development programs, career advancement opportunities, and
performance management initiatives. These plans aim to address current and future
workforce needs effectively and efficiently.

4. Control and Evaluation:

The final phase revolves around monitoring and evaluating the effectiveness of the
implemented manpower plans. This involves assessing progress towards meeting
manpower objectives, identifying any deviations or challenges, and making necessary
adjustments to ensure continued alignment with organizational goals. By continuously
evaluating and controlling manpower plans, the organization can optimize its workforce
management practices and enhance overall performance.

Overall, HRP takes a long-term perspective, balancing short-term gains with future needs. By
proactively identifying and addressing potential manpower issues, organizations can enhance
their capacity for effective and efficient performance, benefiting both the organization and its
employees in the long run. Through strategic planning and continuous evaluation, HRP enables

18
 organizations to adapt to changing circumstances and remain competitive in today's dynamic
business environment.

RECRUITMENT AND SELECTION

Recruitment forms a step in the process which continues with selection and ceases with the
placement of the candidate. It is the next step in the procurement function, the first being the
manpower planning. Recruiting makes it possible to acquire the number and types of people
necessary to ensure the continued operation of the organisation. Recruiting is the discovering of
potential applicants for actual or anticipated organisational vacancies.

Recruitment process passes through the following stages:

 Recruitment process begins when the personnel department receives requisitions for
recruitment from any department of the company, The personnel requisitions contain details
about the position to be filled, number of persons to be recruited, the duties to be performed,
qualifications expected from the candidates, terms and conditions of employment and the time
by which the persons should be available for appointment etc.

 Locating and developing the sources of required number and type of employees.

 Identifying the prospective employees with required characteristics.

 Developing the techniques to attract the desired candidates. The goodwill of an organisation in
the market may be one technique. The publicity about the company being a good employer
may also help in stimulating candidates to apply. There may be others of attractive salaries,
proper facilities for development etc.

 Evaluating the effectiveness of recruitment process

SELECTION
Once a successful recruitment program has been conducted, yielding an ample supply of job
applicants, the subsequent phase entails the process of identifying and choosing the most suitable
candidate for specific roles. Selection emerges as the subsequent logical step in the human
resource process subsequent to recruitment.
Selection is the process of choosing the most suitable person / persons out of all the applicants. It
is the process of choosing individual possessing the required qualification and skill to perform the
job successfully.
Selection includes candidate screening, which entails reducing the applicant pool by eliminating
those who do not meet the qualifications. This process is a managerial responsibility, as
management sets the selection criteria.
20
THE SELECTION PROCEDURE:

1. Preliminary interview: This is the first step in the selection procedure. The objective of this
interview is to discard those candidates who are totally unqualified for the job. Only suitable
candidates are retained for further screening. Preliminary interview saves time and efforts of
both the organization and the candidate. It avoids unnecessary waiting for candidates who
have no chance of being hired. The organization too benefits, as it does not waste time and
money on further processing unsuitable candidates. The preliminary interview is the first
contact of an individual with the organization. Hence it is vital that the staff who are involved
in this step are extremely courteous The candidates who seem suitable are given the
application blanks to fill.

2. Application blanks: This is a very popular method of information from the candidate. The
candidates are supplied a blank specially prepared application form for filling it with
information relating to educational qualifications, experience, training, past experience,
hobbies, interests etc. While some organizations have specially prepared application forms,
others ask candidates to prepare on their own.

3. Selection test: The selection or employment test is the next step in the selection procedure. A
variety of psychological tests are used to obtain information about various aspects of an
individual's behaviour, performance and attitudes. The use of such psychological tests is
becoming increasingly popular. Some of the popularly and widely used psychological tests
and inventories are:

(a) Aptitude Tests aptitude is ability to benefit form of certain type of training it is ability to
learn particular type of skill. On the basis of aptitude one can predict how well a will
perform a particular task in the future. For example an individual who has an aptitude for
music, will with training in music, become a good musician. This will not be the case even
if another person receives the same training but has no or poor aptitude for music. There
are different types of tests which measure aptitudes. Some of the popular aptitude tests are
the Differential Aptitude Test (DAT) and General Aptitude Test Battery (GATB).

(b) Ability Tests: Ability refers to what a person can do now

and what he can learn to do in the future. Ability means that a person can do something like
solve numerical problems, repair a machine, drive a car, sing or act.
Ability tests provide information about the abilities that a person possesses. Two popular
ability tests are: Purdue Pegboard Test and The O'Connor Finger and Tweezer Dexterity
Tests.

(c) Interests Tests: Interest refers to the liking of a person. Different people have different
interest patterns. For example, some people may be interested in music, others in sports and
so on.
Research studies have found that the interest pattern of people who are successful in a
particular occupation are significantly different from the interest pattern of those who are
not successful. Thus if a person wants to enter a particular occupation, his interests should
be similar to those of successful people.

21
 Two of the widely used inventories are: Strong- Campbell Interest Inventory and Kuder
Occupational Interest Inventory

(d) Personality Tests: Personality tests help in determining the personality traits of an
individual. The use of personality tests in organizations is based on the belief that
successful employees possess a particular personality structure. The personality tests assess
this structure and hence are used for selecting new employees. Two of the widely used tests
are: The Minnesota multiphasic personality inventory (MMPI) and 16 personality factor
questionnaires.

The different psychological tests help in:

(a) identification of differences among individuals.
(b) Identification of the maximum and minimum potential the candidates.
(c) Identification of skills, abilities, talents, interests in the candidates

4. Employment interview: The interview is a widely used tool of selecting prospective

candidates for the organization. It gives the employer and prospective employee an
opportunity to meet each other.

The selection or employment interview serves in three purposes:

(a) It is an opportunity to obtain additional information about the candidate and determine his
suitability for the job.
(b) It provides information to the candidate about the organization, the specific job for which
he has applied and personnel policies.
(c) It helps to establish a friendly relationship with the candidate and motivate suitable
candidates to join the organization.

Although the employment interview is very popular, doubts have been raised as to its
reliability in selection of the right candidate.

5. Medical examination: Applicants who have successfully passed the above steps are now
sent for a examination. Medical examination is important for the a medical following
reasons:
(a) It helps to determine whether the candidate is mentally and physically fit to perform
the job.
(b) It prevents employment of employees suffering from contagious diseases.
(c) It saves expenditure that the organization may have to incur for medical treatment of
the candidate.
6. Reference checks: Applicants are frequently asked to provide the names and addresses of
two or three persons who know them well. These persons are commonly referred to as
referees or references. These persons may be previous employers, heads of educational
institutions or other public figures.
The organization contacts the referees through mail or by telephone to know more about the
candidate's character, skills, potentialities etc. The feedback and the comments of the
referees influence the selection of the candidate. Candidates who are evaluated positively by
referees are selected while those who are evaluated negatively are rejected.

22
 7. Final Selection: The candidates who have cleared all the above obstacles are
recommended by the human resources department to the concerned department for their
final approval.

On the final approval of the concerned department, the appointment letter is issued to the
candidate. The appointment letter contains details regarding the pay scale, the post, the rank,
other terms and conditions of employment and the date by which the candidate should join the
organization. Sometimes a contract is signed between the candidate and a representative of the
organization.

EMPLOYEE TRAINING AND DEVELOPMENT

Training is a deliberate initiative by a company aimed at enhancing employees' acquisition of

job-related competencies. These competencies encompass critical knowledge, skills, or
behaviors necessary for effective job performance. The objective of training is for employees to
proficiently grasp the emphasized knowledge, skills, and behaviors outlined in training programs
and effectively apply them to their daily tasks. Training is viewed as one of several potential
solutions for enhancing performance. Alternative actions may involve job restructuring or
boosting employee motivation through incentives and compensation adjustments.

THE TRAINING PROCESS:

Training programs are a costly and a time consuming process. Hence training programs need to
be planned very carefully and then executed. The training process refers to the various steps
usually involved in carrying out a training program.
Most organizational training programs proceed along the following lines:
1. Identifying Training Needs : This initial step involves conducting a thorough assessment to
pinpoint areas within the organization where training is needed. It's essential to identify not
only the specific skills or knowledge gaps but also the employees who require training and
the scope of their training needs. This can be accomplished through various methods such as
performance evaluations, skill assessments, employee feedback, and analysis of
organizational goals and objectives.
2. Determining Training Objectives: Once the training needs are identified, clear and
measurable objectives must be established. These objectives should outline what the
training aims to achieve and how it will contribute to organizational success. Setting
specific objectives ensures that the training program remains focused and enables the
assessment of its effectiveness upon completion.

3. Designing the Training Program : The design phase involves developing the framework
and content of the training program based on the identified needs and objectives. This
includes selecting appropriate training methods, instructional materials, and delivery
formats. The training program should be designed to engage participants effectively, cater to
different learning styles, and provide opportunities for practical application of skills.

4. Implementation of the Training Program : With the training program designed, it is then
implemented within the organization. This may involve scheduling training sessions,
arranging for trainers or facilitators, and providing necessary resources and support. During

23
 implementation, it's essential to ensure clear communication with participants, monitor their
progress, and address any logistical challenges that may arise.

5. Evaluation of the Training Program : After the training is delivered, evaluating its
effectiveness is crucial to determine its impact and identify areas for improvement.
Evaluation involves assessing whether the training objectives were met, gauging participant
satisfaction and engagement, and measuring changes in knowledge, skills, and job
performance. Feedback from participants, supervisors, and other stakeholders is valuable in
identifying strengths and weaknesses of the training program and informing future training
initiatives.

IDENTIFYING TRAINING NEED:

Identifying training needs is a crucial step in ensuring that training initiatives are targeted and
effective. This process involves assessing where training is required within the organization
and determining the specific skills or knowledge that employees need to develop. There are
several methods commonly used to identify training needs:

1. Organizational Analysis: This approach focuses on understanding the broader

organizational context and identifying areas where training is needed to support
organizational goals and objectives. It involves examining factors such as manpower
requirements, skills availability, and the introduction of new technology, products, or
services. By aligning training programs with the organization's strategy and mission,
organizational analysis ensures that training efforts are purposeful and relevant.
Additionally, it examines factors that facilitate or hinder the transfer of skills from training
to the job, thereby enhancing the effectiveness of training initiatives.

2. Task Analysis: Task analysis, also known as job analysis, centers on the specific tasks
and responsibilities that employees perform in their roles. It involves identifying the tasks
that need to be performed, how they should be performed, and the knowledge, skills, and
abilities required for efficient task execution. By focusing on job requirements rather than
individual characteristics, task analysis helps tailor training programs to address specific
job-related competencies, enhancing job performance and productivity.

3. Person Analysis: Person analysis focuses on evaluating individual employees'

performance and identifying their training needs based on their strengths, weaknesses, and
performance appraisal reports. By assessing how well employees are performing key tasks,
organizations can identify areas where additional training or development is necessary to
enhance performance. Moreover, person analysis considers future organizational needs
and identifies training opportunities to prepare employees for advancement to higher-level
roles. This proactive approach ensures that employees are equipped with the skills and
knowledge required for future organizational challenges and opportunities.

24
 By employing these methods to identify training needs, organizations can design and
implement targeted training programs that address specific skill gaps and contribute to overall
organizational success. Effective training needs assessment facilitates the alignment of training
initiatives with organizational goals, enhances employee performance and satisfaction, and
supports continuous learning and development within the organization.

PERFORMANCE APPRAISAL

MEANING:
Performance appraisal is the systematic assessment of an individual with respect to his or her
performance on the job and his or her potential for development in that job. Thus, performance
appraisal is a systematic and objective way of evaluating the relative worth or ability of an
employee in performing his job. The two aspects of performance appraisal considered to be
important are: systematic and objective. The appraisal is said to be systematic when it
evaluates all performances in the same manner, by applying the same approach, so that
appraisal of different persons are comparable. Such an appraisal is taken from time to time
according to plan; it is not left to probability. Thus, both raters’ and ratees know the system of
performance appraisal and its timing. Appraisal has objectivity also. It’s important aspect is
that it attempts at precise measurement by trying to remove human biases and prejudices.

PROCESS OF PERFORMANCE APPRAISAL:

1. Establishing performance standards: the process of appraisal begins with establishment

of criteria for evaluating the performance of employees. The criteria established with the
help of job analysis full stop the criteria should not be big but should be clear and objective
in nature. The criteria should be discussed with the supervisors to ensure that all the relevant
factors have been included.

2. Communicating the standards: The performance standards established in the first step are
communicated and explained to the employees so that they come to know what is expected
of them. Based on the reactions of the employees, the standards may be modified or revised.
Feedback of the employees is critical as it avoids misunderstandings and confusions later
on.

3. Performance Measurement: In this step the actual performance of the employee at work is
measured. It is essential to choose the right technique of measurement. The most frequently
used sources to measure actual performance are: personal observation, statistical reports,
oral reports and written reports.

4. Performance with actual standards: In this step the actual performance of the employee is
compared with the set standards. Such comparisons reveal deviations which may be positive
or negative. Positive deviations occur when the employee's actual performance exceeds the

25
 set standards. Negative deviations occur when the employee's performance is below the set
standards. The deviations reveal the employee's strength and weaknesses.

5. Appraisal discussions: The results of the appraisal are communicated to and discussed with
the employee. The deviations observed in the earlier step are analyzed and discussed. The
employee's strengths and weaknesses are indicated and discussed so that his performance
improves. It is extremely important that the appraisal discussion is done properly as it has
great impact on the employee's self-esteem and affect future performance

6. Taking corrective measures: The last step of the performance appraisal process involves
taking corrective measures to improve the performance of the employee. These corrective
measures are taken in consultation with employees. Based on the discussions the steps
required to improve performance are identified and initiated.

OVERVIEW OF HRM IN BANK

Effective human resource management is indispensable for any organization dealing with
personnel, and this rings especially true for the banking industry, which is inherently a "People
Business." The service-oriented nature of banking accentuates the significance of HRM, as
effectively managing personnel while navigating financial and economic uncertainties poses
notable challenges. Skillful manpower is essential for banks to adeptly handle the financial
risks they routinely encounter. The Human Resources department assumes a pivotal role in
identifying and recruiting talented individuals who can contribute to the bank's success.

A fundamental duty of the HR department in the banking sector involves career guidance.
Employees, particularly those at the front lines in banks, serve as the institution's public face.
Thus, HR must ensure that competent individuals are recruited for these customer-facing
positions. Furthermore, it falls upon the HR department to ensure that selected candidates
undergo requisite training to acquaint themselves with the intricacies of core banking
operations and customer relationship management. Given the sector's shortage of skilled
personnel, HR management must efficiently address both the quantity and quality requirements
of the banking industry.

NEED OF HRM IN BANK

Banking has evolved into a sophisticated endeavour within the financial realm, intricately
connected to both direct and indirect facets of national economic expansion. It stands as a vital
component within the regional sector of a broader global banking landscape. Virtually every
bank and financial entity engages in multifaceted operations daily, necessitating a proficient
team and suitable workforce for seamless functioning. The translation of corporate objectives

26
into tangible successes and profitability heavily relies on the human factor, which plays a
pivotal role in attaining desired outcomes.

Even with high levels of automation, skilled human input remains essential for effective
operations, a realization acknowledged by forward-thinking management in leading banks.
Banking, like many other industries, requires a diverse workforce ranging from educated
security personnel to highly trained financial professionals. The liberalization of the banking
sector has led to a market-oriented approach, with a focus on services like consumer and
housing finance. This shift has emphasized the importance of deploying manpower efficiently
to meet customer needs. Traditionally, human resource management (HRM) in banks has been
handled through personnel departments, treating employees as mere assets like furniture or
equipment.

Personnel departments mainly focused on tasks such as approving leaves, managing staff
loans, issuing show cause notices, conducting disciplinary investigations, and overseeing
terminations. Recruitment was often carried out in a mechanical manner, prioritizing
candidates with specific educational qualifications rather than considering their actual value to
the organization.

The banking industry's core strength lies in its human resources, emphasizing the importance
of skill development and management. A key challenge for banks is to enhance competencies
in credit appraisal and risk management. Integration of information technology is essential for
human resource development. As a result, future HR models will require professionals capable
of driving and anticipating change while understanding complex business environments.

Their cognitive processes cannot be directed to extend beyond their current employment
circumstances. Managing this educated, skilled, and reliable workforce poses considerable
challenges. Several pressing issues confront the banking sector regarding human resource
management. Strengthening the Indian Banking System requires fundamental changes in
operations, strategies, and processes. These include reinforcing prudential norms and market
discipline, adopting international benchmarks, navigating organizational changes and
consolidation within the financial system, upgrading technological infrastructure, and
prioritizing human resource development as a catalyst for transformation (2002).

The Human Resources domain within the banking sector is recognized as a process of
exploration and adaptation. It's a dynamic and evolving aspect deeply intertwined with the
cultural and business landscape of the banking industry. The effectiveness of modern banking
heavily relies on its human capital, which plays a pivotal role in delivering essential services.

The evolution of India's banking system has influenced HR practices, recruitment methods, and
training approaches. It's crucial to engage employees in discussions about human resource
details to facilitate their career planning, shape their perceptions, and foster their professional
development.

The main asset of the banking industry lies in its human resources, underscoring the focus on
skill development and management within HR initiatives. A significant hurdle for banks is to
cultivate specific competencies and expertise in credit appraisal and risk management.
Integrating information technology plays a crucial role in enhancing human resource
capabilities. Consequently, the HR model of the future will necessitate professionals who can
proactively drive change, anticipate industry shifts, and comprehend the intricacies of evolving
business landscapes and influencing factors.

27
MEATHODS OF HRM IN BANKING SECTOR
1. Agile organization structures
The banking industry is evolving at a rapid pace and has an aggressive growth mandate to
meet. Continuing with traditional hierarchical structures can be detrimental to banks. Agile
organizational structures are designed to be more responsive and provide the adaptability to
respond to changes in the market or the broader industry.

2. Selective recruitment
Another great method of recruiting for key roles in banks is selective hiring. It means
coming up with hiring strategies that are more proactive and attract highly qualified
candidates with specific skill sets. In selective hiring, HR teams do a thorough job analysis
of the open positions, look at publicly available data on the labor force to target recruits, and
ask current employees for referrals. With this method, less time and money are wasted
looking for and interviewing people who aren't right for the job.

3. 360-degree feedback system

360-degree feedback is a system in which employees get feedback on their skills from their
direct reports, manager, peers, and even customers. This feedback is anonymous and is kept
private. To implement this practice, an online, anonymous feedback form is sent to 7 to 12
people. The questions on the form cover a wide range of job-related skills.

4. Rewards and recognition programs

In the banking industry, meeting high standards of customer service is critical to success.
Rewards and recognition programs can help foster a culture of excellence within banking
organizations, as they encourage employees to go above and beyond in their work. These
programs also help in improving employee morale and job satisfaction, as they
acknowledge and appreciate the contributions of individual employees.

5. Streamlined succession planning

In the banking industry, succession planning is critical for ensuring that the organization has
a pipeline of qualified leaders who are ready to step into key roles as they become available.
The following steps can be followed to implement succession planning in banks:
• 80% of corporate value in banking organizations is driven by 50 roles or so, which is
why it is important to identify the key roles and responsibilities that are critical to the
success of the organization. This includes identifying the skills, experience, and
competencies that are necessary for success in these roles.

• Next, it is important to assess the current pool of internal candidates to determine who
has the potential to fill these key roles. This may involve conducting assessments, such as 360-
degree feedback or leadership development programs, to identify strengths and areas of
improvement.

28
 • Once potential candidates have been identified, it is important to develop a plan to
prepare them for leadership roles. This may include providing training and development
opportunities, as well as assigning them to key projects or assignments that will allow them
to gain the skills and experience they need to succeed in leadership roles.

6. Flexible working arrangements

Long hours and high levels of stress are common in the banking industry. This is why
flexible work arrangements, such as flexible schedules and remote work, are becoming
increasingly common in the sector. These arrangements allow employees to have more
control over their work schedules and help to improve work-life balance, improve employee
productivity, and engagement.

7. Employee development plans

In a survey, 54% of banking professionals responded that retaining younger talent is
“somewhat challenging,” while 12% responded that it is “very challenging,”. Your current
workforce, which probably includes a lot of millennials and a growing number of Gen Z
probably has skills and experience that have nothing to do with their current job but could
help the company reach its vision and long-term goals.

8. Transparency
In the banking industry, where employees handle a wide range of duties, the need for clear
expectations and knowledge of corporate objectives becomes vital. There are two aspects to
building transparency:

i) Making a connection between the efforts of the individual and of teams towards the
organization's goals

ii) Communicating the ‘why’ behind decisions

Employees in a bank should have access to business information to help them feel like

they are a part of the team. Banks can consider using communication channels like

weekly team updates, newsletters, and all-hands meetings to facilitate transparency.

29
COMPENSATION

Compensation comprises all the external rewards an employee earns throughout and following their
tenure with a company in recognition of their contributions. The fundamental principles guiding
compensation payment dictate that it must be sufficient, impartial, and just for the employees. This
includes elements such as base salary, incentives, bonuses, and benefits, all of which are
determined through job evaluation processes.

JOB EVALUATION
Job evaluation is a structured process used to assess the worth of each position within an
organization relative to other roles both internally, within the industry, and in the broader job
market. Essentially, it entails categorizing a job according to its significance, contribution to the
organization, and the skills and qualifications it RY
It involves
 designing suitable job evaluation techniques;
 Evaluating various jobs;
 Ascertaining the relative worth of jobs in various categories.

WAGES AND SALARY ADMINISTRATION

Wage and salary administration refers to the procedures involved in designing and managing an
appropriate compensation program for employees.
It includes:
 Conducting wage and salary survey in the market and in the industry;

 Determining wage and salary rates on the basis of various factors like law, equity, fairness
and performance;

 Implementing wage and salary administration programs;

INCENTIVE
Incentives are the rewards an employee earns in addition to regular wages or salary based on the
performance of the individual, the team or the organization.

BONUS
A bonus is essentially a portion of the surplus or excess earnings that directly correlates with the
performance of the organization. In India, bonus payments are widely used to reward employees
and are regulated by The Payment of Bonus Act 1965.

FRINGE BENEFITS
Fringe benefits are those monetary and non-monetary benefits given to employees during their
employment, and sometimes, in the post-employment period also. These benefits are connected to
employment with the organization and are not related to the employee‘s performance.
These benefits provide a sense of security to the employee and keep them committed to the
organization.
Some of the marginal benefits include;
 Disablement benefits
 Housing facilities

30
  Canteen facilities

 Conveyance facilities

 Educational facilities for employees and their children

 Credit facilities

 Recreational facilities

 Medical and welfare facilities

 Post-retirement benefits

 Company stores
 Legal aid

COMPENSATION & BENEFITS

Banks offer various forms of compensation to their employees, including reimbursement for
medical treatment costs, fees for cancelled holidays, vehicle repair expenses, and
compensation for injuries sustained while performing job tasks. Employees have the option
to claim compensation in any of these situations. Additionally, banks provide several
benefits to their employees, such as paid time off, retirement plans, disability insurance,
and education and training programs.

Paid time off benefits encompass payments to employees for time not worked due to reasons
such as vacation, holiday pay, and sick pay. Retirement benefits typically include pensions,
gratuity, provident funds, and superannuation funds, which support employees financially
after they retire.

Disability insurance offers financial assistance to employees who become injured or ill and are
unable to perform their job duties. Lastly, education and training programs are provided by
banks to enhance employees' skills and knowledge, enabling them to perform their roles
more effectively.

HUMAN RELATIONSHIP
Administering various human resources policies, including employment development,
compensation, and fostering interactions among employees and between employees and
management, fosters a sense of working relationships between workers, management, and trade
unions. These interactions essentially revolve around human connections. Human relations,
therefore, play a crucial role in management, integrating individuals into work environments in a
manner that motivates them to collaborate, leading to economic, psychological, and social
satisfaction and ultimately enhancing productivity. Consequently, Human Resources

31
 Management functions focus on several key areas:

1) Understanding perception, personality, learning, and intra- and inter-personal relations.

2) Motivating all employees effectively.
3) Promoting high levels of employee morale.
4) Developing effective communication skills throughout the organization.
5) Cultivating leadership skills among employees.
6) Addressing grievances satisfactorily through well-defined procedures.
7) Managing disciplinary cases fairly and according to established procedures.
8) Providing adequate counselling to address employees' personal, work-related, and family
issues, thereby alleviating stress and strain.

CHALLENGES FACED BY HR IN BANKING SECTOR

1. Talent Acquisition and Retention: The banking industry faces stiff competition in attracting
and retaining top talent. Banks often require employees with specialized skills and knowledge,
such as financial expertise and familiarity with banking regulations. Recruiting and retaining
such talent can be challenging, especially when competing with other financial institutions and
industries that offer attractive compensation packages.

2. Technology and Digital Transformation: The banking industry is undergoing significant

technological advancements and digital transformation. This presents challenges for HR
departments in terms of upskilling and reskilling employees to adapt to new technologies and
changing job requirements. HR needs to identify the necessary skills for the future and ensure
employees receive adequate training and development opportunities to stay relevant in the
digital age.

3. Regulatory Compliance: The banking industry is subject to numerous regulatory requirements

and compliance obligations. HR departments need to ensure that employees are well-informed
about these regulations, undergo appropriate training, and adhere to compliance standards.
Maintaining a culture of compliance throughout the organization is crucial to avoid penalties
and reputational damage.

4. Workforce Diversity and Inclusion: Promoting diversity and inclusion within the banking
industry is a challenge that HR departments need to address. Creating an inclusive work
environment, where individuals from diverse backgrounds feel welcome and have equal
opportunities, is essential. HR needs to implement diversity recruitment strategies, diversity
training programs, and initiatives that promote inclusion and equality throughout the
organization.

5. Employee Engagement and Morale: The fast-paced and high-pressure nature of the banking
industry can lead to employee burnout and low morale. HR departments face the challenge of
keeping employees engaged, motivated, and satisfied in their roles. This may involve
implementing work-life balance initiatives, providing career development opportunities,
recognizing and rewarding employees’ achievements, and fostering a positive
organizationalculture.

32
3
6. Succession Planning and Leadership Development: Banks need strong leaders to navigate the
complex and evolving financial landscape. HR departments must identify and develop future
leaders within the organization through effective succession planning and leadership
development programs. Ensuring a pipeline of skilled leaders is essential for the long-term
success and stability of the bank.

7. Change Management: The banking industry experiences frequent changes, whether it be

mergers and acquisitions, restructuring, or technological advancements. HR departments play a
critical role in managing these changes effectively by communicating with employees,
addressing their concerns, and providing support during periods of transition
 Chapter 2: RESEARCH METHODOLOGY

RESEARCH STATEMENT
The following Research Statement is Framed:

“HRM in banking sector”

OBJECTIVE OF STUDY

1. To study the practices of HRM and effects of human resource practices in HDFC bank.
2. To understand the satisfaction of employee in banking sector
3. To study HRM policies & strategies adopted by different banks
4. To study the different aspects of Human resource Management.
5. To understand the challenges and issues of HRM in banking sector.
6. To study the emerging trends in HRM applied by different banks.

HYPOTHESIS
A hypothesis is a tested claim regarding the relationship between two or more variables
or a suggested explanation for some observed occurrence in a scientific context.

NULL HYPOTHESIS:

HO= There is no Relation between the Age and Work-life balance.

ALTERNATIVE HYPOTHESIS:

H1 = There is a Relation between the Age and Work-life balance.

SCOPE OF STUDY
The topic selected for the study is “Human Resources Management in Banking Sector"

.• The project aims to analyze and interpret employee practices using Human Resources
as a tool, assessing the banking sector's preparedness, bank performance, and
competitiveness.

• The management process involves studying HR management system effectiveness and

proposing improvements to enhance the relationship and mutual understanding between
management and employees. HR systems offer detailed insights on individuals, aiding
management in goal achievement and fostering smooth relationship

34
SAMPLE SIZE
A Sample of 60 Respondents is taken into consideration for further Study.

Data collection
Data collection is the process of collecting and evaluating correct data from numerous
sources in order to find solutions to research problems, trends, probabilities, and so on, in
order to evaluate probable outcomes.

METHODS OF DATA COLLECTION

 PRIMARY DATA:

Primary data is information obtained directly from primary sources by

researchers, such as interviews, surveys, and experiments.Primary Data in this
Study is collected through Questionnaire and personal interview. A Google
Form was Passed on Digitally and 60 responses were collected and 4 Personal
Interview were involved.

 Prakash Mehra (Manager of YES BANK-panvel)

 Shilpi Kumari (Provisionary officer of SBI- Belapur)
 Avinash Gaurav (IT employee at SBI- Belapur)
 Chiranjan Kumar (Ex BOI Branch manager)

 SECONDARY DATA:

Secondary data is information that has previously been gathered from primary
sources andmade easily available for use by researchers in their own
study.Secondary data in this study is collected from various Websites &
Newspaper articles.

LIMITATION OF THE STUDY

 The study is limited to 2 banks i.e (State Bank of India Belapur, YES Bank Panvel ). So
the study is subject to the limitation of area.
 The time period of the study was only two weeks which may provide a deceptive picture
in comparison of the study based on long run.
 Sampling size was of only 80 , because only these people had attended soft skill
development training.
 State Bank of India only provides soft skill development training, not skill based
(product/process) training. So how can one evaluate the skill based training is still
unresolved.
 The study is based only on secondary & primary data so lack of keen observations and
interactions were also the limiting factors in the proper conclusion of the study.

35
 Chapter 3

REVIEW OF LITERATURE

The banking industry is the backbone for the growth of any economy. The banking
industry is an important component of the financial sector for proper management of
financial resources across the globe (Ahmad Ashfaq et al 2010). It is reckoned as a hub
and barometer of the financial system in a country. Banking sector plays a pivotal role in
the economic development of the country and is among the oldest sectors of the country.
India is an emerging economic power with a very large pool of human and natural
resources, and a growing large pool of skilled professionals. Indian Banking Sector is
most developed, organized and diversified sector. This sector is an important tool for
facilitating the development of Indian Economy.

In order to this industry to the altitudes of international distinction, it needs to have a

combination of latest technologies, better methods of credit, management of treasury,
product variation, internal & external controlled regulations and human resources at the
most. The extent of Objectives & Challenges met will identify management of human
resources as the key to future success. Why human resource management is important for
Banks.

If any organization want to run smoothly, effectively and efficiently, the most
treasured and indispensable factor that organizations need is human being (Mosadragh,
2003). Well-qualified and capable personnel are important in the context of achieving
goals and objectives of an organization. The victory of an organization totally depends
on the three basic things as hard work, loyalty, and involvement of staff members.

In the past, when the time of personnel management system prevails, humans were treated
as a machine because of which the behaviour could be manipulated for the advantage of
the organization and replaced when it was worn out. Also, the policies of the organization
were less flexible and organizations were centralized. But after the emergence of a
conception of HRM, the organizations found more malleable & decentralized which is
more compatible with the organic system and has cross-cultural and cross hierarchical
system. Given by (Shahnawaz M.G et al., 2006) that Human Resource Management takes
the entire organization as a central point for analysis.

Dr.B.Mathivanan (2013) studied that the past research studies and literature have clearly
revealed that prime challenge for top management and HRM functionaries in banks today
is to mould the beliefs and values of their employees in favour of HRM Policy and
systems. The unions in banks need to modify the traditional role at the work place and
start focusing on development roles like a) Initiation of HRM b) Communication c)
Education and Training d) Welfare of bank employees) Role in family vocational
guidance and f) research. Computerization may reduce employment possibilities although
the aments’ experiment of computerization has kept the employment in a particular
operation.

36
In Shilpi Singh (2013) studied that Organizations all over are rushing to implement the
latest ideas on management, sometimes to the point of overuse. The major challenge now
for banks as well as any other organisation is therefore how to develop their social
architecture that generates intellectual capital as the quintessential driver of change.
Developing the individual or human capacity is an integral element of building capacity
and, in fact, capacity building initiatives are now increasingly becoming almost an index
of institutional quality. Taking the banking industry to the heights of excellence, especially
in the face of the a forehead-detailed emerging realities, will require a combination of new
technologies, better processes of credit and risk appraisal, treasury management, product
diversification, internal control and external regulations and, not the least, human
resources.

Surya Prakash Rathi Neha Sharma (2014) studied that banking sector is a pillar on which
the Indian economy has been based and being a service industry this sector is based on its
human resource. To keep the economy growing at a good pace, banking industry plays the
most important role and to keep the banking system going, human resource has to be
properly managed and developed in such a fast changing and competitive environment.
The attrition rate has to be lowered and skilled human resource has to be created and
retained

HR industry grows at 21% over 4 years: Executive Recruiters Association and E&Y
report, the human resource industry in India has grown at a compounded annual growth
rate of 21% over the past four years and is pegged to be around Rs 22,800 crore, according
to a report by Executive Recruiters Association and Ernst & Young. As the industry gets
more organised, new players, emerging sectors and multinationals are dropping anchor,
and a changing mindset in traditional companies makes space for HR firms rather than
referrals for hiring, it adds. The 'Human Resource Industry Solutions Report 2012'
indicates a maturing industry which is moving from being fragmented to getting more
organised. The industry has players that are segregated into recruitment , temporary
staffing and executive search. HR consultants' image has moved many notches up from
being a vendor to that of a partner who plays a key role in the company's growth trajectory
, says the report. While the permanent recruitment in India is estimated at Rs 3,000 crore,
the search industry is pegged to have a market size of Rs 600 crore to Rs 700 crore. The
search sector gets its boost from foreign players entering Indian markets and expanding
into different geographies and industries. Companies that deal with the automobile, luxury
, agricultural and food business that have entered India in the past few years have used
search firms to expand further.

37
WHAT LEADING BANKS & INSURANCE COMPANIES
ABOUTTHEIR HUMAN RESOURCES
 Axis Bank
Employees remain the most critical driver in Bank's journey towards achieving its
longterm objectives. The Bank values and understands that it is the employees, those in
the frontline and those supporting them that drive its promise of being 'Dil Se Open'.

 HDFC Bank
Our people and culture are fundamental to our success. Their collective knowledge,
diverse skill sets and deep experience constitute our human capital. Our people enable us
to stay agile, adapt to changing times, innovate and deliver competitive solutions.
(HDFC Bank)

 State Bank of India

SBI believes in and acknowledges the critical role of its employees in achieving its
present and future organisational goals. SBI recognises the employees' focussed efforts
to steer the Bank's performance to greater heights.

 HDFC Life Insurance Company Limited

Employees are more than just staff for us, and we care for their overall happiness and
wellbeing. Not only our employees, but we also hold a sense of responsibility towards
their families, who play crucial roles in making an employee successful at work.

 ICICI Prudential Life Insurance Company Limited

The alignment of our people strategy with our business strategy,along with consistent
investment in the growth & development of our employees helps create the edge which
makes the Company's human resources a source of its strength and a key competitive
advantage.

 ICICI Lombard General Insurance Company Limited

At ICICI Lombard, we believe that our employees are the driving force
behind our success which they enable through their collective knowledge, skills,
experience and abilities.

~ All the above information has been extracted from the Annual Report 2021-22 of the
respective company

38
EMPLOYEE LEARNING AND DEVELOPMENT IN PRIVATE
SECTOR AND PUBLLIC SECTOR BANKS
STATE BANK OF INDIA

State Bank of India has a very elaborate training network comprising of 47 Learning
Centers and 5 Apex Institutes developed over 50 years to cater to competence
building.

The Bank's training system functions under the overall supervision and guidance of
the Strategic Training Unit, headed by a very senior level executive.

The Strategic Training Unit ensures:

> All employees undergo at least one institutional training during a year.

>Training programs are aligned with current corporate priorities /requirements of

Business Units.

>More than 2,34,763 participants trained during 2013-14 covering 60% of Officials
and 68% of Award Staff.

> Senior officials are motivated to pursue Harvard Mentor, an online course on
management issues under tie up with Harvard Business School.~ SBI Annual Report,
2013-14

ICICI LOMBARD

At ICICI Lombard, employee Capability is built in a structured manner and it

addresses every stage of their career and role. Their learning approach involves 70%
on-the-job learning, 20% social and peer learning and 10% e-Learning and structured
classroom learning. In addition, there are Individual Capability Plans (ICP) drawn up
for employees based on discussion with line managers and the progress on the actions
are tracked. Some of the learning interventions include:

>. Integrated Knowledge Certification and Behavioural Certification: A three-level

knowledge acquisition model that builds domain knowledge.

Code Orange: Involves blended learning via online, classroom sessions and a 90-day
mentorship programme.

Code Maroon: Involves clearing three consecutive internal assessments, go beyond

immediate scope of work, and build knowledge.

Code Maroon +: An apex level domain/functional certification that offers

international exposure and benchmarking.

39
>. Code Blue: Addresses major transitions in employees' leadership journey and
equips them - transition from Individual Contributor to First-Time Manager; from
First-Time Manager to Manager's Manager; and then being Emerging Business
Leader.

> Learning Roadmaps: Involves 92 learning roadmaps based on understanding of

domain learning needs. The aggregate learning hours of employees within the
organisation stands at 248,104 hours in FY2020, with 30.12 average hours of learning
per employee.~ ICICI Lombard, Annual Report, 2019-20

HDFC BANK

At HDFC Bank, People' is one of the Bank's Core Values. It is extremely proud of
them, the integrity and ethics that they demonstrate and, indeed, the culture that
promotes these values. This culture ensures that the people with the right values are
hired, groomed and encouraged. HDFC Bank has an institutionalized, well-
documented code of conduct, which every employee has to affirm annually. The five
pillars of their People strategy are as follows:

(1) Recruitment: Recruiting the right talent isn't enough anymore in an industry like
banking. What is critical is recruiting and deploying them fast. HDFC Bank has an
agile hiring mechanism that ensures this. This often entails leveraging online portals
and new age channels like social media. Campus hiring and internship programs
enable them to expand the hiring base further.

(2) Career Management: Core to HDFC Bank's career philosophy is to create

opportunities for employees to develop and grow. The systematic investment of time
in career discussion with employees, competency assessment and intensive functional
and behavioral training, through Gurukul their in-house programme, are also aimed at
achieving that result. The Bank also facilitates inter-departmental job switches to
employees to help them stay motivated, productive and happy.

(3) Employee Engagement: Employee engagement has two planks, namely events and
fun learning. The events are conducted at both local and national levels. While most
of these events are open to employees, some are meant for families as well.

(4) Training and Development: Training plans for businesses are developed based on
needs identified in consultation with the business leaders. An extensive bouquet of
training programs are delivered, covering on-boarding, product and process training,
advanced programs and behavioral training.

(5) Rewards and Recognition: Recognition programs of the Bank is based on a sound
performance management system. HDFC Bank has a pay-for-performance culture
based on meritocracy. There is equal emphasis on recognition as well. Extraordinary
commitment towards work is rewarded. So is at times going beyond the call of duty.

40
 ICON Awards recognise employees for demonstrating individual, leadership and
collaborative excellence in driving customer focus and operational excellence.~
HDFC Bank, Annual Report 2017-2018

HR-THE GREATEST CHALLENGE FOR PUBLIC SECTOR BANKS

A report titled Indian Banking 2020: Making the Decade's Promise Come True by
The Boston Consulting Group (India) Private Limited, Federation of Indian Chambers
of Commerce & Industry and Indian banks' Association states: "There are two areas in
which the Indian banking industry will be severely challenged to find a solution over
the next decade. First pertains to the rising expectation from banks to find an
economically viable solution for financial exclusion. The second pertains to human
resources challenge in the public the second threatens to cripple the ability of the
largest segment of the banking industry from being able to innovate and stay
competitive.

The public sector banks enter the next decade with the same expectations as their
private sector peers but with a severe disadvantage in human resources. The HR
challenge of public sector banks has reached a tipping point. Due to a legacy of
several decades, the public sector banks will witness unprecedented loss of skills and
competencies in the form of retiring senior and middle management executives over
the next few years. That coupled with the need for large scale re-skilling, attracting
and retaining fresh talent, controlling the growing employee costs, and introduction of
performance discipline are significant challenges.

"Unless the banks accord highest priorities to these challenges and work in concert, it
is unclear that the solutions to these two challenges will be identified." ~Extracted
and Edited from Indian Banking 2020: Making the Decade's Promise Come True
published by The Boston Consulting Group, Inc. 2010.

41
RETIREMENT IN PUBLIC SECTOR BANKS
RBI calls it the decade of retirement for state-run banks. The reason being many CEOs,
executive and managing directors are retiring next year. The big problem, however, will
be in the middle, where most executives are above 55years. If the govt fails to wake up
even now, the void could disrupt many banks, writes Saloni Shukla
Central bankers rarely talk straight, more so when it comes to the state of the banking
industry. But the Reserve Bank of India deputy governor SS Mundra came close to it
when he recently raised the red flag about the state of human resources in the banking
industry. When Mundra calls this a 'decade of retirement', it should be the beginning of
sleepless nights to chiefs of banks and the biggest stakeholder in the system-the
government, if it wants to save whatever little value is left of the sector after bad loans
had eroded its worth. State-run banks, which used to be the most sought after for job
seekers in the three decades since the 70s, not only lost sheen to more lucrative career
options in technology and other sectors, but the efforts to make it more efficient by
ending indiscriminate hiring and not replacing it with a suitable hiring plan is beginning
to bite. "This is a decade of retirement for PSBs and I am sure those working there are
already feeling the pinch of the loss of experienced hands in their day-to-day operations,"
Mundra told a conference last month. Many chief executives are retiring in the next year
and so are the executive and managing directors. The big problem is of the missing
middle. Nearly 73% of the deputy general managers and general managers put together
at state-run banks are above 55 years of age. And another 23% are in the age group of
50-55, which clearly suggests that their retirement too isn't far away. The very vocal
former governor of RBI, Raghuram Rajan, had also voiced his strong opinion on the
subject and said the country could be staring at a "national calamity" if the enormous
national assets with PSU banks start to deteriorate due to loss of talent and capabilities.
"Many private sector banks run on people poached from public sector banks. So, let us
first acknowledge that these are national assets and we need to retain the value that they
create,” he had said in an interview to a television channel. "These banks are sitting on
enormous national assets and for those assets to deteriorate would be national calamity."
~The economic times 2nd November ,2016

42
HRM

HRM IN PUBLIC SECTOR BANK

Recently, there has been a noticeable shift in the HR function within public sector banks.
It appears that these banks are beginning to recognize the importance of HR functions,
and there is optimism that they will quickly adapt to modern practices seen in other
sectors. It's worth remembering that, historically, public sector banks have followed
HRM practices resembling those of government departments, primarily focused on
centralized recruitment and staffing for nationwide branch expansion since the 1970s. In
this setup, HRM's role was less directly involved in business development and more
focused on ensuring staffing needs were met across the country.

HRM IN COOPERTIVE BANKS

The dominance of the Registrar of Cooperatives over HR policies in cooperative banks is
regrettable. This situation may contribute to the challenges faced by cooperatives in their
efforts to enhance their operations and performance.

HRM IN REGIONAL RURAL BANK (RRBs)

Regarding Regional Rural Banks (RRBs), many of them tend to adopt the HR policies of
their sponsor banks, which may not be suitable for their unique characteristics and
requirements.

HRM IN PRIVATE BANK AND FOREIGN BANK

The HR practices in private and foreign banks are highly focused on identifying the
specific skills required for each job and recruiting suitable candidates through various
means. Recruitment is viewed as an ongoing process in these banks, emphasizing the
importance of matching the right individuals with the appropriate positions by offering
competitive compensation, incentives, and job titles. Considerable effort is directed
towards minimizing turnover and providing relevant training opportunities. The
compensation structures may vary widely across employees, reflecting individual roles
and contributions. HRM plays a significant role in monitoring and mentoring employees,
with recruitment often spanning various geographical locations and hierarchical levels
rather than relying on routine transfers. Technological advancements have facilitated the
centralization of back-office operations, enabling services to be delivered remotely.

While these institutions employ proactive performance appraisal systems, they may fall
short of implementing 360-degree appraisals. Their training programs focus on both skill
development and motivation. However, despite the efforts of HRM, the high demand for
professionals in response to the growth of the Indian business sector has made it
challenging to entirely mitigate staff turnover.

43
HRM IN PUBLIC SECTOR UNIT BANK (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 organization. This also underlies a belief that
anyone can occupy any desk. In such a system specialization 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. Transfers are not driven by business
requirements but a matter of routine. Vacancies get created as & when people move
up.
It is not uncommon to see new department‘s spring up just to allow promotions. In a
way such a move is justified as salary is linked to grades & not performance. The
concept of job rotation is practiced with great conviction. As regard leave it is seen
that modern business organizations, driven by work life balance issues &operational
risk ensure that certain annual leave is mandatory.

In the case of PSU Banks, the compulsory leave system‖ has not yet taken root. In the
circumstances an important task at hand is training the staff member, who, on account
of age profile is not comfortable working in an IT environment. HRM should also
take immediate steps to improve productivity. There is a simultaneous need to balance
the demand of IT savvy youngsters joining the organization who ask for high salaries.

PSU Banks are not able to offer market driven salary. Given that banking business &
the business of Government are distinct, there is, in the case of PSU Banks, an urgent
need that salaries are not limited by what is paid in the ministry but unshackled. Till
that happens, HRM should, innovatively tackle the issue.

44
CASE STUDY ON FINANCIAL INSTITUTIONS

HRM:A CASE STUDY OF HDFC BANK

The HR function within banks shares similarities with that of other organizations,
operating as an ongoing process aimed at fostering employee development, motivation,
and effectiveness in a systematic and strategic manner. Given that banking is a service-
driven industry, human resources play a pivotal role, serving as the cornerstone for
organizational success. Without a well-managed workforce, other resources become
less effective.

In the banking sector, managing people and mitigating risks are two major challenges.
Effective risk management heavily relies on having a skilled and capable workforce.
However, there is a noticeable shortage of such skilled manpower within the industry,
both in terms of quality and quantity. This scarcity underscores the importance of
investing in human resources to ensure the sustainability and growth of banks.

HRM (2013-14)
Human Resources Development has been a key and constant focus area of the bank.
The human resources agenda, that includes within its gamut the attraction and retention
of talent, skills development, reward and recognition, performance management and
employee engagement are realized through a number of key initiatives, systems and
processes. Employee Development Performance Management is one of the most critical
dimensions pertaining to the management of human resources and the organization has
a comprehensive Performance Management System (PMS) to assess performance. The
PMS facilitates the differentiation between the various categories of performance.
Higher rewards for higher levels of performance have been a fundamental philosophy
of the bank. Apart from rewards, the PMS also allows for identification of training and
development needs for employees. Employee development and growth is realized
through an array of functional and behavioural programs that the bank conducts
throughout the year as well as on the job training. Further the bank lays emphasis in
rotating key talent for professional development and growth and building a leadership
pipeline for the future. Rewards and Recognition Rewards and Recognition play a key
role to attract, retain and engage employees. Bank is committed to ensure that
employees are competitively positioned VIS Ë VIS market with respect to both fixed as
well as variable pay. The Bank also grants employee stock options to a certain segment
of the employee population in order to align employee efforts to the creation of
shareholder value. Apart from the standard compensation the Bank also has a well
institutionalized recognition problem called as h3TAR! Wards to recognize the
contribution of employees on an ongoing basis.

45
HRM (2012-2013)
Constant focus on the Human Resources dimension is an integral part of the Bank’s
values. Attracting, retaining and developing our workforce to meet the current and
future needs of our business is a key focus area. The organisation is committed to
achieve the above through comprehensive interventions in training and development,
providing career growth opportunities and creating an entrepreneurial culture.
Performance Management is one of the most critical dimensions pertaining to the
management of human resources and the organisation has a comprehensive
Performance Management System (PMS) to assess performance. The PMS facilitates
the differentiation between the various categories of performance. Higher rewards for
higher levels of performance have been a fundamental philosophy of the bank. Apart
from rewards, the PMS also allows for identification of training and development needs
for employees. Employee development and growth is realized through an array of
functional and behavioural programmes that the bank conducts throughout the year as
well as on the job training. The bank lays emphasis in rotating key talent for
professional development and growth and building a leadership pipeline for the future.
Development interventions of the Bank are supplemented by the conducting of
Development Canters for high performing mid-level managers. Rewards and
Recognition It is the endeavour of the organisation to ensure that employees are
competitively positioned vis-à-vis market with respect to both fixed as well as variable
pay. In order to align employee efforts to the creation of shareholder value the bank
also grants employee stock options to a certain segment of the employee population.
Apart from the standard compensation the organisation also has a well institutionalized
recognition program called “Star Awards” to recognize outstanding achievement of
individuals. Fun at work is something the Bank feels should be an integral part of every
HDFC bank employee’s life. Keeping in mind the aforementioned statement, the
organisation believes in conducting activities that help individuals showcase their talent
or pursue their interests other than work. The Bank conducted comprehensive sports
activities like Josh Unlimited, a multicity, multi sports event, held across eight cities, a
pedometer based race event and online musical classes with an established musical
academy. The organization received a very strong participation for such activities
which is a testimony to their success.

HRM (2011-12)
People remain the most valuable asset of the Bank. The Bank continued to build on its
capabilities in getting the right talent to support different products and geographies and
is taking effective steps to retain the talent. During the year under review, the total staff
strength has increased to 4334 employees as compared to 2981 employees at the same
time in previous year. Directors would like to record their appreciation of the hard work
and commitment of the Company’s employees, which resulted in the good
performance.

46
HRM (2009-2010)
The total number of employees of the bank was 51,888 as of March 31, 2010. The Bank
continued to focus on training its employees, both on-the-job as well as through
training programs conducted by internal and external faculty. The Bank has
consistently believed that broader employee ownership of its shares has a positive
impact on its performance and employee motivation. HDFC Bank lists ‘people’ as one
of its stated core values. The Bank believes in empowering its employees and
constantly takes various measures to achieve this. The Bank’s employees are
encouraged to volunteer time and skills through the ‘Corporate Volunteering Program’.
The Bank’s employees have engaged in activities such as academic support classes,
held English speaking courses and helped in organizing special events in order to
celebrate festivals with the underprivileged. Additionally the Bank has facilitated
employee donations to charities of their choice through ‘Give India’, a donation
platform that enables individuals to support social causes by donating to over 200
charities that have been screened for transparency and credibility. The bank makes a
donation matching the amounts donated by its employees on a monthly basis.

HRM (2008-2009)
The total number of employees of the bank increased from 37,836 as on March 31,
2008 to 52,687 as of March 31, 2009. The growth in the employee base was in line with
the growth in the banks businesses and distribution both inorganically as well as
organically. The Bank continues to focus on training its employees on a continuing
basis, both on the job and through training programs conducted by internal and external
faculty. The Bank has consistently believed that broader employee ownership of its
shares has a positive impact on its performance and employee motivation. HDFC Bank
lists 'people’ as one of its stated values. The Bank believes in empowering its
employees and constantly takes various measures to achieve this.

HRM(2007-2008)
HUMAN RESOURCES The Bank’s staffing-needs continued to increase during the
year particularly in the retail banking and SME businesses in line with the business
growth. Total number of employees increased from 21,477 as of March 31, 2007 to
37,836 as of March 31, 2008. The Bank Directors' Report HDFC Bank Limited Annual
Report 2007-08 Rs. 10 lacs = Rs. 1 million 17 continues to focus on training its
employees on a continuing basis, both on the job and through training programs
conducted by internal and external faculty. The Bank has consistently believed that
broader employee ownership of its shares has a positive impact on its performance and
employee motivation. The Bank’s employee stock option scheme so far covers around
6,535 employees.

47
SUGGESTIONS FOR BETTER HRM:

The study suggests that HDFC Bank should review its polices from time to time for the
improvement of employee’s participation at middle level and senior level management
inter-alia with other practices like Training, Performance Appraisal, Team Work and
Compensation etc. which need to be maintained in order to achieve high level of job
satisfaction. The Management should create awareness at all levels that HRM is
everybody business and systems for creating such awareness for the development of the
organization. HDFC Bank should establish a high power HRM Committee at the
corporate level. The HRM surveys should be carried out in the banks and findings of
these surveys should be interpreted and suitable HRM interventions should be made.
The suggestions emerging from these surveys need to be examined and followed up
seriously. Further the HDFC Bank should consider to re-examination the needs of
welfare measures like medical facilities, canteen facilities at branches, scholarships for
children of staff, holiday homes and library facilities at branches. The other important
polices like transfers, promotions, rewards and punishments should be made more clear
and transparent.

CONCLUSION:

Human resource management involves effectively utilizing the available skilled

workforce to its fullest potential. Its primary goal is to optimize the use of human
resources within an organization. For instance, in the current context, the construction
industry grapples with a shortage of skilled workers. Every organization aims to have
competent personnel to enhance its effectiveness compared to competitors. Human
resources are deemed more valuable assets than physical assets like land and buildings
because without employees, no organizational activity can proceed. Skilled staff are
essential for quality production, highlighting the importance of recruiting the right
individuals and addressing performance evaluation, dispute resolution, and
communication across all levels.

In HDFC Bank, human resources development is a central focus, encompassing talent

attraction, skills enhancement, reward systems, performance evaluation, and employee
engagement initiatives. Performance management, especially, is crucial and is
supported by a comprehensive Performance Management System (PMS) that
distinguishes various performance levels and rewards high achievers. Additionally, the
PMS aids in identifying training needs, ensuring continuous employee development
through functional and behavioural programs and on-the-job training. The bank's
commitment to empowering its employees aligns with its core values, recognizing
human resources as the most valuable organizational asset. Consequently, HRM
emphasizes viewing employees as assets rather than costs, aiming to leverage their

48
 skills not only for organizational objectives but also for their personal growth,
development, satisfaction, and overall benefit.

A CASE STUDY OF CANARA BANK LTD (Amalgation of Syndicate

into Canara bank)

Canara Bank
Canara Bank Ltd. is an India-based bank. It was established in the year 1906 and its
office is based in Karnataka. Canara bank today is one of India‟s fastest growing banks,
which caters to wide variety of banking needs of both individuals and corporate. It
provides consumer banking services, commercial banking services, investment banking
services, and numerous other financial services. With a portfolio of over 14 subsidiaries
across India and the world and a few joint ventures, Canara has spread its businesses
wide across the market and country with over 5,850 branches, including over eight
overseas branches. The bank is listed on the NSE and BSE.

Sydicate Bank
Syndicate Bank With roots as far back as the 1925, Syndicate Bank‟ comes with a long
heritage of banking in the trade communities of south India. It was established by three
visionaries Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T
MA Pai, a physician with an intention to provide financial support to the local weavers.
Syndicate Bank is the best example to be cited in serving the people in the very best way. Their
emblem - containing the picture of a faithful and friendly animal i .e, the dog indicates the
motto and the way in which they deal with the public. The dog is identified as a companion and
a trustworthy and faithful servant. So is the Syndicate Bank. It serves its masters, i.e., the
customers in a most friendly and faithful manner. The Bank offers financial products and
services such as demand deposits, online banking, cash management, insurance, loans, and time
deposits. The bank operates over 3,700 branches. Its domestic branch network consists of over
1,230 rural, approximately 1,030 semi-urban, over 820 urban and approximately 680 metro
branches.

Structure of the Deal

 The key terms of the Scheme are: Appointed Date: August 30, 2019
 Swap Ratio: 158 equity shares of face value INR 10 of Canara Bank shall be issued to
the shareholders of Syndicate Bank for every 1000 equity shares of face value INR 10
of Syndicate Bank held by them.
 Directorship: 1 director from the board of Syndicate Bank has been appointed on the
board of Canara Bank.
 Transfer of employees: all employees of Syndicate Bank will on and from the Effective
Date, become employees of Canara Bank, and all years of services in Syndicate Bank

49
 for employees still in service on the Effective Date shall be counted in determining
employee benefits, such as gratuity, incentive plans, ESOPs, etc.

Challenges of this Deal:

The major challenge was related to human resources management. The HR process to
be aligned. Because there could be different policies for perquisite, transfer and
promotions. But the Canara bank has postponed this issue to the next fiscal year. The
employees of Syndicate bank were worried whether their pay structure would continue
or not. Some of the employees of Syndicate bank had other concerns too. Employees in
positions like regional manager, sales head, zone manager, etc., were apprehensive that
duplication of positions could lead to transfers or even to their losing their jobs.
Another major challenge is technology integration. There is two ways of looking at
technology integration. First is integrating the database, product and processes, apart
from the integrating of people related affairs. The second way is to look at customer
facing, employee-facing and also back-office technologies.

CONCLUSION:

Amalgamations are considered as corporate events which helps an organization to

create synergy and provide sustainable competitive advantage, but, simultaneous these
sorts of corporate events have the potential to create severe personal trauma and stress
which can result in psychological, behavioral, health, performance, and survival
problems for both the individuals and companies, whether it is a bank or a non banking
financial corporation, involved in it. The post-merger integration process is a difficult
and complex task. It comes along with long lists of activities and tasks that have to be
fulfilled within a short time and partly with incomplete information. The results showed
that there is no significant improvement in the various ratios of Canara Bank in post
amalgamation period. The null hypothesis of the study has not been rejected which
stated that there is no significant progress or improvement in the financial position of
the Canara Bank in post period. Canara Bank, the amalgamated company was unable to
encash the benefit of synergy in the short term. Re-pricing of existing Canara Bank
savings account deposits negatively impacted on margins. But for a long term it will be
beneficial for Canara Bank. The amalgamated entity benefited from wider customer
base, distribution network and product suite, this would translate into higher cross-
selling of Canara‟s products

50
A CASE STUDY ON SBI
In 2001, the State Bank of India (SBI) encountered significant resistance from its
employees regarding its Voluntary Retirement Scheme (VRS). This opposition
stemmed from the fact that the Indian banking industry was grappling with an issue of
being overstaffed by approximately 35%. This surplus in personnel posed several
challenges for the banking sector, including inflated operational costs and inefficiencies
in resource utilization.

The Government of India recognized the urgency of addressing this issue to enhance
the competitiveness and efficiency of the banking industry. One of the primary
objectives was to trim the workforce and curtail staff costs to ensure the long-term
sustainability and viability of banks like SBI.

Implementing a VRS was seen as a strategic measure to achieve these objectives. The
scheme offered employees the option to voluntarily retire from their positions in
exchange for certain benefits, such as financial incentives and retirement benefits. By
encouraging voluntary retirements, banks aimed to streamline their operations, optimize
staffing levels, and mitigate the financial burden associated with excess manpower.

However, the proposal faced staunch opposition from employees who were
apprehensive about the implications of the VRS on job security, livelihoods, and future
prospects. Many employees viewed the scheme as a forced exit strategy rather than a
voluntary option, leading to widespread protests and dissent within the workforce.

The standoff between management and employees underscored the complex dynamics
involved in implementing workforce restructuring measures in a sector as vital as
banking. Balancing the imperative to rationalize staffing levels with the need to address
employee concerns and welfare became a significant challenge for both SBI and the
government.

Ultimately, while the VRS aimed to address the pressing issue of overstaffing and
reduce operational costs, its implementation required delicate negotiations and careful
consideration of the interests of all stakeholders involved.As per the procedures IBA
formulated VRS package
In response to the government's push for workforce reduction in the banking sector, the
State Bank of India (SBI) indeed endorsed the Voluntary Retirement Scheme (VRS)
proposed by the government. However, the decision faced strong opposition from
employee unions, who voiced their concerns regarding the underlying issues affecting
the banking industry.

One of the primary contentions raised by the employee unions was that the root cause
of the banking sector's challenges lay not solely in staff costs but also in the mounting
Non-Performing Assets (NPAs). NPAs, or bad loans, were a significant concern for
banks as they indicated a deterioration in asset quality and impaired the ability to lend
profitably. Employee unions argued that addressing the NPA problem should be
prioritized over simply trimming staff costs through VRS.

Moreover, the unions expressed apprehension that implementing VRS might exacerbate
issues in rural areas. They argued that rural branches, which often already faced staffing

51
shortages, could be disproportionately affected by the voluntary retirement of
employees. The closure or downsizing of rural branches due to manpower shortages
could further marginalize rural communities, hindering access to essential banking
services and financial inclusion efforts.

The concerns raised by the employee unions underscored the multifaceted nature of the
challenges confronting the banking sector. While reducing staff costs through VRS
could offer short-term financial relief, it was imperative to address systemic issues such
as NPAs and ensure that measures taken did not undermine the accessibility of banking
services, particularly in underserved regions.

The debate surrounding VRS highlighted the complexities inherent in balancing cost-
cutting measures with broader considerations of financial stability, social impact, and
inclusive growth. Finding a sustainable solution required a comprehensive approach
that took into account the concerns of all stakeholders, including employees,
management, government regulators, and the communities served by the banking
sector.

In February 2001, the State Bank of India (SBI) implemented criteria for its Voluntary
Retirement Scheme (VRS), stipulating that only officers who had crossed the age of 55
would be eligible for the scheme. This criterion effectively excluded a significant
portion of officers from availing themselves of the VRS benefits.

Approximately 12,000 officers found themselves ineligible for the VRS under these
criteria and were consequently rejected. Feeling aggrieved and marginalized, these
rejected employees came together to form an association with the aim of opposing the
discriminatory policies they perceived the SBI management to be adopting in granting
VRS.

The association argued that the age-based criterion imposed by SBI for the VRS
unfairly targeted older employees, thereby discriminating against them based on age.
They contended that such discriminatory practices not only deprived eligible employees
of their right to avail themselves of the VRS but also exacerbated feelings of inequality
and injustice within the workforce.

Moreover, the rejected employees' association asserted that the age-based criterion
failed to consider the individual circumstances and contributions of each employee.
Many of those rejected may have been willing and financially prepared to opt for
voluntary retirement, but were unfairly precluded from doing so solely based on their
age.

The association's opposition to the discriminatory policies of SBI's VRS highlighted

broader concerns about fairness, transparency, and inclusivity in the implementation of
workforce restructuring measures. By challenging the age-based criterion, the
association sought to advocate for the rights and interests of all employees, irrespective
of age or other arbitrary factors.

The dispute between the rejected employees' association and SBI management
underscored the need for careful consideration and equitable treatment in formulating
and implementing policies affecting the workforce. Ultimately, addressing the

52
grievances raised by the association required a dialogue between management and
employees aimed at achieving a more equitable and inclusive approach to workforce
management and restructuring initiatives.

EFFECTS:
The implementation of the Voluntary Retirement Scheme (VRS) by the State Bank of
India (SBI) and its associated banks had significant financial implications. The average
estimated cost per head for implementing the VRS was reported to be approximately
6,50,000 rupees for SBI and 5,70,000 rupees for the associated banks. This expenditure
contributed to a decline in SBI's net profit from 2500 crore rupees in 1999-00 to 1600
crore rupees in 2000-01.

The VRS was intended to reduce SBI's total workforce, with the total staff strength
expected to decrease to around 2,00,000 by March 2001 from the previous level of
2,33,000. Despite concerns raised by analysts regarding the wisdom of the VRS, an
average of 5,000 employees were retiring each year, leading to a gradual reduction in
the workforce. By June 2001, SBI had relieved over 21,000 employees through the
VRS, and it was reported that another 8,000 employees were to be relieved after
reaching retirement age by the end of 2001.

However, this substantial reduction in workforce through the VRS raised concerns
about the increased workload for the remaining employees. With fewer staff members
available to handle the bank's operations and customer service requirements, there were
apprehensions regarding the ability of the existing workforce to manage the workload
effectively. The prospect of a tremendous increase in workload highlighted the
potential challenges and operational disruptions that could arise from the VRS
implementation.

Overall, while the VRS aimed to rationalize staffing levels and reduce costs for SBI and
its associated banks, its implementation led to financial implications and operational
challenges. The bank had to carefully manage the transition to ensure continuity in
services while mitigating the impact on employees and maintaining operational
efficiency.

SBI-VRS IS NOT AS PER EXPECTATION OF MANAGEMENT:

The acute shortage of manpower in the bank posed a significant challenge to its
operations and service delivery. With the workforce already strained due to the
Voluntary Retirement Scheme (VRS), the prospect of further reducing the retirement
age from 60 years to 55 years intensified the pressure on senior bank officials. This
potential adjustment to retirement age prompted many senior officials to seriously
consider opting for the VRS, fearing that staying on might not be a viable option given
the uncertain future.

It's crucial to note that the Voluntary Retirement Scheme offered by the State Bank of
India was not compulsory. Rather, it provided an option for employees to voluntarily
retire from their positions if they desired to do so. The decision to avail of the scheme
rested entirely with the individual employees, based on their personal circumstances,
career aspirations, and financial considerations.

53
Many employees who opted for the VRS saw it as an opportunity to transition into new
fields or explore alternative career paths. For some, it offered a chance to retire early
and pursue personal interests or spend more time with family. Others may have been
motivated by the financial incentives and retirement benefits offered under the scheme.

However, the voluntary nature of the scheme also meant that it didn't address the core
issue of the manpower shortage in a systematic or comprehensive manner. While some
employees chose to avail themselves of the VRS, others may have opted to continue
their employment, leading to an uneven distribution of workforce resources across
different departments and functions within the bank.

Overall, while the Voluntary Retirement Scheme provided a means for employees to
exit the bank voluntarily, it didn't fully alleviate the challenges posed by the shortage of
manpower. The decision to retire under the scheme was a personal one, influenced by
various factors, and it reflected the diverse motivations and aspirations of the bank's
workforce.

STRATEGIES FOR PROPER STAFF COST REDUCTION:

 Paying the right price

 Decrease the cost facilities
 Decrease the cost of human
 Decrease cost of human resources
 Reconsider your cheaper choices
 Renegotiate, Renegotiate and renegotiate
 Focus on cost of risk and funds
 Centralize
 Automate

CONCLUSION:

1. Legal Oversight: Indian courts play a crucial role in addressing legal disputes related
to Voluntary Retirement Schemes (VRS), ensuring that companies adhere to principles
of fairness and non-discrimination. This includes scrutinizing eligibility criteria and
ensuring that VRS processes are conducted without bias based on factors such as age,
gender, or tenure.

2. Clarity on Benefits: Court judgments provide clarity on the calculation and payment
of VRS benefits, ensuring that employees receive their rightful entitlements as per the
terms of the scheme and their employment contracts. This helps in preventing disputes
regarding the financial aspects of VRS and ensures that employees are treated fairly in
terms of compensation.

3. Procedural Compliance: Courts emphasize the importance of procedural compliance

in VRS implementation, requiring companies to follow legal requirements and
regulations. This includes proper notification to employees, consultation with relevant
stakeholders or employee representatives, and adherence to statutory timelines. By

54
ensuring procedural fairness, courts help safeguard the rights of employees and uphold
the integrity of the VRS process.

4. Protection of Employee Rights: Courts protect the rights of employees by prohibiting

coercive or unfair practices during VRS implementation. This includes ensuring that
employees are not subjected to undue pressure or intimidation to opt for VRS and
emphasizing the importance of informed decision-making. Employees must have
access to all relevant information about the VRS scheme to make voluntary and well-
informed choices about their future employment.

5. Ethical Conduct and Employee Welfare: Companies are reminded of the importance
of ethical conduct and employee welfare throughout the VRS process. Courts
emphasize the need for transparent communication, fair treatment, and support
mechanisms to assist employees in making decisions about VRS. By prioritizing
employee well-being and dignity, companies can navigate VRS implementation in a
manner that respects legal norms and fosters a positive workplace environment.

55
 CHAPTER NO. 4
DATA ANALYSIS, INTERPRETATION & PRESENTATION

GRAPHICAL REPRESENTATION OF DATA

GENDER

GENDER NO. OF RESPONDENTS PERCENTAGE%

MALE 33 55%

FEMALE 27 45%

OTHER 0 0

INTERPRETATION:

Out of 60 Respondents,
55% of Respondents are Male,
45% of Respondents are Female.

56
AGE GROUP

AGE NO. OF RESPONDENTS PERCENTAGE

18-25 35 58.3%

26-35 20%
12
36-50 10 16.7%

51 & ABOVE 3 5%

TOTAL 60 100%

INTERPRETATION:

Out of 60 respondents, 58.3% are between the ages of 18 and 25, 20% are between the
ages of 26 and 35, 16.7% are between the ages of 36 and 50, 5% are between the ages of
51 and above.

57
WORKING PERIOD IN BANKING INDUSTRY

YEARS NO. OF REPONDENTS PERCENTAGE%

0-3yrs 29 48.3%

3-6yrs 18 30%

6-9yrs 8 13.3%

10 or above 5 8.3%

INTERPRETATION
Out of 60 respondents 48.3% have been working between 0-3 years, 30% have been working
for 3-6years, 13.3% have been working for 6-9 years and 8.3% have worked for 10 years or
above.

58
POSITION/ JOB ROLE

POSITION NO. OF RESPONDENTS PERCENTAGE%

PROBATIONARY 12 20%
OFFICER
NEW JOINEE 22 36.7%

CLERK 7 11.7%

MANAGER 15 25%

OTHERS 4 6.6

INTERPRETATION

Out of 60 respondents, 20% of respondent are probationary officers, 36.7% are new joinee,
11.7% are clerk, 25% are manager and 6.6% are at different position such as IT employee,
asst. vice president, Sales, etc..

64
METHOD OF RECRUITMENT

Method No. Of respondents Percentage%

Competitive Exam 24 40%

Walk-in interview 21 35%

Referrals 8 13.3%

College placement 6 10%

INTERPRETATION
Out of 60 respondents, 40% of respondent were recruited by competitive examination
method, 35% gave walk-in interviews when there was any vacancy add on news
paper/magazine, 13.3% were recruited by referrals and 10% were recruited during college
placements.

60
ADEQUATE TRAINING

DID YOU RECIEVED NO. OF RESPONDENTS Percentage%

ADEQUATE TRAINING?

YES EXTENSIVELY 32 53.3%

YES TO SOME EXTENT 22 36.7%

NO 6 10%

INTERPRETATION
Majority of banking employees have received adequate training according to the respondents
we have received, out off 60 respondents 90% of employees have received adequate training
and 10% have not

61
DURATION OF THE TRAINING PERIOD

IF YES, WHAT WAS THE NO. OF RESPONDENTS PERCENTAGE%

DURATION OF YOUR
TRAINING PERIOD?
1week 5 8.3%

3weeks 26 43.3%

1month & above 24 40%

None 5 8.3%

INTERPRETATION

According to responses we have received most of the bank provides with training period of
3weeks-1month.Out off 60 response 8.3% received training period of 1 week, 43.3% received
training period of 3 weeks, 40% received training period of 1month & above and rest 8.3%
receive none training.

62
WORK CULTURE ENVIRONMENT

HOW DO YOU FIND THE NO. OF PERCENTAGE%

WORK CULTURE RESPONDENTS
ENVIRONMENT AT
YOUR BANK?
Excellent 14 23.3%

Good 24 40%

Satisfactory 21 35%

Poor 1 1.7%

INTERPRETATION

According to the response we have received almost all the employees are satisfied or more
than satisfied with the work culture environment they receive, out of 60 respondents 23.3%
have excellent work culture environment in their bank, 40% have good, 35% are satisfied
with the work culture environment and 1.7% said the work life culture to be poor.

63
WORK-LIFE BALANCE

How satisfied are you NO. OF RESPONDENTS PERCENTAGE%

overall with your work-life
balance since joining the
bank?
Very satisfied 6 10%

Satisfied 30 50%

Neutral 18 30%

Dissatisfied 6 10%

Very dissatisfied 0 0

INTERVENTION

More than half of the response we received are satisfied or neutral from the work life balance
they receive and 10% is dissatisfied.

64
STRATEGIES FOR MAINTAINING WORK-LIFE BALANCE

Strategies Adopted By The NO. OF PERCENTAGE%

Bank For Maintaining Work RESPONDENTS
Life Balance Of Employees?
Time flexibility 21 35%

Minimum work load 14 23.3%

Remote working 16 26.7%

Fitness program 5 8.3%

Others 4 6.7%

INTERPRETATION

Out of 60 responds we received 35% of the employees are happy with the time flexibility
provided to them, 23.3% are happy with minimum work load provided to them, 26.7% are
happy with the remote working provided, 5% because of the fitness program the bank offers
and rest have some other reasons.

65
COMPLIANCE WITH LEGAL and REGULATORY REQUIREMENTS
in HRM POLICIES

How does the organization NO. OF RESPONDENTS PERCENTAGE%

ensure compliance with
legal and regulatory
requirements in its HRM
policies and practices?
Through regular audits and 19 31.7%
reviews

By consulting legal experts 20 33.3%

Through clear policy 20 33.3%

documentation

Others 1 1.7%

INTERPRETATION

Out of 60 respondents, 31.7% of respondent’s organization ensure HRM practices through

regular audits and reviews, 33.3% respondents organization through consulting legal experts,
33.3% respondent’s organisation through clear policy and documentation, 1.7% others.

66
OVERALL EFFECTIVENESS OF HRM POLICIES

How would you rate the NO. OF RESPONDENTS PERCENTAGE%

overall effectiveness of
HRM policies and practices
in your Bank?
Excellent 13 21.7%

Very good 22 36.7%

Good 15 25%

Fair 6 10%

Poor 4 6.7%

INTERPRETATION

Out of 60 respondents, of 21.7% respondents review on HRM policies are excellent, 36.7%
respondents review is very good, 25% respondents review is good, 10%respondents said fair
and 6.7 respondents find it poor.

67
HRM POLICIES AND PRACTICES SUPPORT EMPLOYEE
DEVELOPMENT

Do HRM policies and NO. OF RESPONDENTS PERCENTAGE%

practices in the organization
support employee
development in areas such
as leadership, teamwork,
and communication skills?
Yes, extensively 20 33.3%

Yes to some extent 35 58.3%

No not at all 5 8.3%

INTERPRETATION

Out of 60 respondents 33.3 said yes extensively, 58.3% said yes to some extent and 8.3% said
no not at all.

68
PROMOTIONS ARE BASED UPON

Promotions in your bank is NO. OF RESPONDENTS PERCENTAGE%

based upon
Merits 24 40%

Seniority 22 36.7%

Qualifications 14 23.3%

INTERPRETATION

Out of 60 respondents in 40% respondent’s organization promotion is based on merits, 36.7%

respondents organization promotion is based on seniority and in 23.3% promotion is based on
qualification

69
METHOD OF PERFORMANCE APPRAISAL

Which method of NO. OF RESPONDENTS PERCENTAGE%

performance appraisal is
adopted by your bank?
Performance Tests and 24 40%
observation

Peer assessment 16 26.7%

360 degree Feedback 15 25%

Self-Evaluation 5 8.3%

INTERPRETATION

Out of 60 respondents in 40% respondent’s organization performance appraisal is based on

performance test and observation, 26.7% respondents organization performance appraisal is
based on peer assessment, 25% respondents organization performance appraisal is based on
360 degree feedback and in 8.3% promotion appraisal is based on qualification

70
FEEDBACK

How often does your bank NO. OF RESPONDENTS PERCENTAGE%

takes feedback
Monthly 16 26.7%

Quarterly 29 48.3%

Yearly 15 25%

INTERPRETATION

Out of 60 respondents 26.7% respondents bank takes feedback monthly, 48.3% respondents
bank takes feedback quarterly and 25% respondents bank takes feedback yearly.

71
SATISFACTION LEVEL

Rate you satisfaction level NO. OF RESPONDENTS PERCENTAGE%

with your bank
1 2 3.3%

2 1 1.7%

3 4 6.7%

4 1 1.7%

5 5 8.3%

6 5 8.3%

7 13 21.7%

8 15 25%

9 7 11.7%

10 7 11.7%

72
INTERPRETATION
Out of 60 respondents,
% respondents rate 1 level of satisfaction
1.7% respondents rate 2 level of satisfaction
6.7% respondents rate 3 level of satisfaction
1.7% respondents rate 4 level of satisfaction
8.3% respondents rate 5 level of satisfaction
8.3% respondents rate 6 level of satisfaction
21.7% respondents rate 7 level of satisfaction
25% respondents rate 8 level of satisfaction
11.7% respondents rate 9 level of satisfaction
11.7% respondents rate 10 level of satisfaction

HYPOTHESIS TESTING:

H0 = There is no Relation between the Age and Work-life Balance.

H1 = There is a Relation between the Age and Work-life Balance.

□ OBSERVED FREQUENCIES
Work-Life Balance
Age
Group Very Satisfied Neutral Dissatisfied Very Total
Satisfied dissatisfied
18 - 25 1 10 2 1 0 14
26 - 35 2 9 7 0 0 18
36 -50 2 12 2 0 0 16
51 & 1 6 3 0 0 10
above
Total 6 28 25 1 0 60

□ EXPECTED FREQUENCIES
Work-Life Balance
Age
Group Very Satisfied Neutral Dissatisfied Very
satisfied Dissatisfied
18 - 25 2.55 20.4 10.625 0.425 0
26 – 35 1.35 10.8 5.625 0.225 0
36 – 50 1.2 9.6 5 0.2 0
51& 0.75 6 3.125 0.125 0
above

72
□ CHI-SQUARE POINTS

Relationship With CRM Manager

Age
Group Very Satisfied Neutral Dissatisfied Very
satisfied Dissatisfied
18 - 25 0.942157 0.007843 0.177941 0.777941 0
26 - 35 0.312963 0.3 0.336111 0.225 0
36 – 50 0.533333 0.6 1.8 0.2 0
51& 0.083333 0 0.005 0.125 0
above

CHI SQUARE= 6.859956 CRITICAL VALUE= 26.29623

P VALUE= 0.866728

□ Formula Applied:

=chi-square test (actual value, expected value) Since, the p-value is

greater than 0.05 i.e. (0.866728 > 0.05) we accept H0 and reject H1. So we
conclude that “There is no relation between age and work life balance.”

73
 CHAPTER 5 : CONCLUSION & SUGGESTION

SUGGESTIONS:

Certainly, creating an ethical and productive work environment requires a concerted effort
from organizations. Here are some key pointers to achieve this:

1. Encourage open and transparent communication within the organization. This helps in
identifying shortcomings effectively and allows for constructive feedback.

2. Implement regular feedback mechanisms, such as performance appraisals and anonymous

suggestion boxes, to gather insights into areas needing improvement.

3. Invest in continuous training and development programs to address skill gaps and enhance
employee capabilities. This demonstrates a commitment to the growth and well-being of
employees.

4. Ensure fair compensation and benefits packages that align with industry standards.
Recognize and reward outstanding performers through bonuses, promotions, or other
incentives.

5. Promote work-life balance initiatives, such as flexible working hours, remote work
options, and paid time off, to support employee well-being and reduce burnout.

6. Foster a culture of ethical leadership by setting a positive example at all levels of the
organization. Leaders should adhere to high ethical standards and promote integrity in
decision-making processes.

7. Embrace diversity and inclusion by creating a welcoming and inclusive workplace where
employees from diverse backgrounds feel valued and respected.

8. Implement employee wellness programs that focus on physical, mental, and emotional
well-being. This can include access to healthcare services, counseling services, and wellness
activities.

9. Acknowledge and appreciate employees' contributions through formal recognition

programs, such as Employee of the Month awards or peer-to-peer recognition platforms.

10. Foster a culture of continuous improvement where employees are encouraged to suggest
innovative ideas and participate in problem-solving initiatives.

By focusing on these pointers, organizations can create an ethical and supportive work
environment that fosters employee well-being and drives remarkable progress.

74
CONCLUSION

Certainly, Human Resource Management (HRM) plays a crucial role in the growth and
success of an organization. Creating a positive and motivating work environment is essential
for organizational success and employee satisfaction. While recruitment and selection lay the
foundation by identifying suitable candidates, the journey of integrating them into the
organization doesn't end there. Induction programs play a vital role in aligning new
employees with the company's culture, values, and expectations, thereby enhancing their fit
within the organization. Additionally, providing behavioural training further refines
employees' skills and ensures they possess the necessary competencies to excel in their roles.
However, implementing these initiatives requires significant resources in terms of time,
money, attention, and guidance.

While these investments may seem substantial, they are essential for fostering employee
engagement and motivation. Without a concerted effort to support and develop employees,
organizations risk facing high turnover rates and decreased productivity. Furthermore, a lack
of investment in employee development can lead to disengagement and dissatisfaction,
ultimately impacting the organization's bottom line.

To counteract this, organizations must prioritize employee motivation through consistent

efforts. One effective method is providing recreational activities and events such as tours,
picnics, family outings, annual days, sport days, functions, and parties. These activities not
only offer employees opportunities for relaxation and bonding but also demonstrate the
organization's commitment to their well-being and work-life balance. By nurturing a positive
and inclusive culture that values employees' contributions and fosters connections among
team members, organizations can cultivate a motivated workforce that drives success and
growth in the long term.

75
AXXENTURE

Q. Name

Q. Age
 18-25
 26-35
 36-50
 51 &above

Q. Gender
 Male
 Female
 Prefer not to say

Q. How long have you been working in banking industry?

 0-3 years
 3-6years
 6-9 years
 10 & above

Q. What is your current position in the bank

 Probationary Officer
 Manager / assistant manager
 Clerks
 New joinee
 Others

Q. By which method were you recruited in bank?

 Competitive exam
 Walk-in interview
 Referrals
 College placement

Q. Have you received adequate training or orientation on the HRM policies and procedure
of the organization?
 Yes, extensively
 Yes, to some extent
 No, not at all

Q. If yes, how long was the training period ?

 1 week
 3 week
 1month & above
 none

76
Q. How do you find work-culture environment in your bank?
 Excellent
 Good
 Satisfactory
 Poor

Q. How satisfied are you overall with your work-life balance since joining the bank?
 Very satisfied
 Satisfied
 Neutral
 Dissatisfied
 Very dissatisfied

Q. Strategies adopted by the bank for maintaining work life balance of employees?
 Time flexibility
 Minimal work load
 Remote working
 Fitness programs
 others

Q. Promotion in your bank is based upon

 Merits
 Seniority
 Qualifications

Q. How does the organization ensure compliance with legal and regulatory requirements in
Its HRM policies and practices?
 Through regulatory audits and review
 By consulting legal experts
 Through clear policy documentation

Q. How would you rate the overall effectiveness of HRM policies and practices in your
bank?
 Excellent
 Very good
 Good
 Fair
 Poor

Q. Do HRM policies and practices in the organization support employee development

in areas such as leadership, teamwork and communication?
 Yes, extensively
 Yes, to some extent
 No, not at all

77
Q. Which method of performance appraisal is adopted by your bank?
 Performance tests and observation
 Peer assessment
 360 degree feedback
 Self-evaluation

Q. How often does your bank takes feedback

 Monthly
 Quarterly
 Yearly

Q. Rate your satisfaction level with your bank

 1
 2
 3
 4
 5
 6
 7
 8
 9
 10

78